Nscale’s $35 billion IPO is largely silent about its biggest customer, China’s ByteDance, which wants access to Nvidia’s chips
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Nscale, an AI cloud provider backed by Nvidia, has filed for a $35 billion US initial public offering. The company's relationship with its largest customer, ByteDance, the owner of TikTok, was not prominently disclosed in its main pitch to investors. According to the Financial Times, ByteDance accounted for nearly three-quarters of Nscale's sales last year.
ByteDance used Nscale's cloud facility in Norway to access Nvidia chips, which it would otherwise have been unable to buy in China due to US trade restrictions. This arrangement was only indicated in a document published alongside Nscale's main filing, and it did not directly mention ByteDance by name.
The relationship between Nscale and ByteDance exposes the AI cloud provider to regulatory and reputational risks, as the US and China compete to dominate the growing technology sector. Investing.com reported this information.
Brief written by urgent.news from Fortune, Investing.com, Financial Times — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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