Cloud infrastructure firm QumulusAI keeps sliding, despite Nvidia partnership
The company had just completed a direct listing the day before the Nvidia announcement / Photo: LinkedIn / QumulusAI
Shares of small-cap QumulusAI, a specialized cloud infrastructure provider for AI, plunged 33% on Friday, its second day of trading. The selloff came despite the company announcing a partnership with Nvidia the same day.
Details
QumulusAI shares plunged 33% on the Nasdaq on Friday to $14.30 apiece. The same day, the firm announced it had become an Nvidia cloud partner. In premarket trading on Monday, the shares had lost around another 4% as of this writing.
The Nvidia partner designation allows QumulusAI to offer other companies rapid access to computing capacity powered by Nvidia graphics processing units and the chipmaker’s infrastructure across the entire process, from AI model training and fine-tuning to production-scale inference, according to the QumulusAI press release. Nvidia’s other partners include Nebius Group and cloud platform Crusoe Cloud.
About QumulusAI
QumulusAI emerged its current form in August 2025 following a series of mergers and acquisitions. Like Nebius and CoreWeave, QumulusAI is a so-called “neocloud" infrastructure provider, offering specialized, high-performance infrastructure designed to power AI workloads. AI companies need computing capacity much faster than traditional infrastructure developers can provide it. QumulusAI can deploy GPU infrastructure and begin generating revenue from it within 90 days, while traditional providers can take years, the company explained in its S-1 initial registration statement filed with the SEC.
In 2025, the company’s revenue rose 47.5% year over year to $11.8 million, while the net loss narrowed almost threefold to $4.46 million.
QumulusAI went public on Thursday, listing on the Nasdaq through a direct listing. (Unlike an IPO, existing shareholders sold their shares, while the exchange determined the opening price based on pre-opening buy and sell orders.) Trading began at $38 per share on Thursday, but the shares had plunged around 44% by the close. Over the two days, the stock lost 62% of its value.
