Nebius's Nvidia-backed competitor may postpone its IPO — The Telegraph

British cloud provider Nscale, in which Nvidia has invested, is considering postponing its initial public offering, according to The Telegraph. The company plans to list its shares on the New York Stock Exchange; however, according to the publication, management is discussing postponing the IPO until next year.

This was preceded by a drop in the stock prices of AI companies with high debt burdens amid concerns that a landslide victory for the Democrats in the U.S. election would lead to a slowdown in data center construction, The Telegraph notes. Due to market volatility, it may prove impossible to carry out the offering, the newspaper believes. Barron’s called this yet another sign of the sector’s ongoing weakness.

Nscale declined to comment on this information to both The Telegraph and other media outlets.

The company's IPO could have given it a market capitalization of up to $30 billion, although that figure may have been merely a target. Investors considered it too high, valuing the company in the range of $16 billion to $19 billion, Bloomberg reported in October.

Just a few days ago, it became clear that Nscale had lost a significant portion of its potential revenue. According to Reuters, Microsoft decided not to exercise an option to extend its existing agreement with Nscale, which would have allowed it to lease additional computing capacity at a data center in Texas. Previously, the tech giant had walked away from a $3 billion deal to lease capacity from Nscale at its key British data center in Essex.

This article was AI-translated and verified by a human editor