Nscale Files for NYSE IPO With $103 Billion in Contracts Heavily Tied to Two Customers

Nscale, the British AI cloud provider, is heading toward a New York Stock Exchange listing that will test how much concentration risk public investors will accept in the AI infrastructure boom.

According to its IPO filing, the company has amassed over $103 billion in contracts since spinning out of Australian cryptocurrency miner Arkon Energy two years ago. But roughly 85 percent of that total comes from just two deals: a $43.8 billion agreement to supply Microsoft with compute through 2033, and a $44.6 billion supply contract with Anthropic.

The Anthropic deal carries strings. It is contingent on Nscale securing financing, and the AI lab can walk away or cancel if Nscale misses milestones the filing itself describes as stringent.

Such concentration is endemic to the sector. A recent paper by credit hedge fund Sona Asset Management, covered by the Financial Times, found AI infrastructure providers heavily dependent on a handful of customers: CoreWeave draws 67 percent of its revenue from Microsoft, while data center builder Applied Digital takes 67 percent from Oracle and 30 percent from CoreWeave. Sona noted the interdependence is not inherently dangerous, but a single setback or strategy shift at a major player can ripple through the entire industry.

The numbers behind the listing are dramatic. Nscale expects a valuation around $35 billion and aims to raise $3 billion, according to FT and Bloomberg reporting. Revenue for the six months ended June 30 hit $140.6 million, up from $10.4 million a year earlier, while net losses jumped to $1.02 billion from $369 million. NVIDIA recently committed $1 billion in convertible debt as part of a larger $3.1 billion financing, and the company was valued at $14.6 billion in a $2 billion Series C led by Aker ASA and 8090 Industries.

Nscale operates data centers in Norway, Portugal, Texas, and West Virginia, and its board includes former Meta executives Sheryl Sandberg and Nick Clegg along with former OpenAI executive Fidji Simo. Competitors include CoreWeave, Nebius, Lambda, and Crusoe, which raised $3.9 billion last week at a $30.9 billion valuation.