Nscale, an AI data centre developer backed by Nvidia, is running into resistance over its planned stock market listing. According to Bloomberg, reported late on 18 October 2026, the company is seeking a valuation of about $30 billion, but a group of investors is urging a range of $16 billion to $19 billion.
Why investors are pushing back
- Cooling AI sentiment: chip and AI infrastructure stocks have fallen sharply in recent sessions as investors question how quickly huge AI spending will pay off.
- Industry setbacks: reports point to the collapse of Australian firm Firmus's IPO plans and Microsoft cancelling a data centre deal, citing delays linked to power constraints.
- Execution risk: building data centres depends on securing land, power and chips on time, and delays can quickly hurt revenue.
Where the IPO stands
Nscale filed for its IPO on 18 September. Formal marketing to investors has not yet begun, even though the standard waiting period has passed. Reports say the company is still working through comments from the US Securities and Exchange Commission and that no final decisions have been made on pricing or timing.
Strong contracts, big expectations
Nscale has signed a multi-year computing deal with robotics company Figure worth at least $3.5 billion and up to $6 billion. Supporters argue that contracts like this show real demand for AI computing capacity. Sceptics say the valuation already assumes years of smooth growth.
Why it matters
Nscale's listing is seen as a test of public market appetite for "neocloud" companies that rent out AI computing power. A lower valuation would signal that investors are becoming more selective about the AI infrastructure boom, while a strong debut could reopen the door for similar listings.
This article is based on reports available as of 19 October 2026. Details may change as the story develops.
