Nscale wants a $35 billion valuation. Nvidia is helping foot the bill
The neocloud's IPO filing shows a company that burned through cash while a chipmaker that also happens to be its biggest supplier helped it keep it alive.
Nscale, the Nvidia-backed "neocloud," has filed for a New York public listing with a valuation ranging up to $35 billion, according to the Financial Times. The company, founded in 2024 by former Arkon Energy CEO Josh Payne, has posted a net loss of $1.02 billion in the six months leading up to June 30, 2026. Despite these losses and management concerns about its ability to stay afloat, Nscale is seeking Wall Street's approval for such a high valuation due to a promise of $103 billion in contracts expected to generate revenue on schedule.
Nvidia, Nscale's biggest supplier, investor, and potential future shareholder, has a $3.1 billion financing agreement with the company. The neocloud's reliance on Nvidia raises questions about circular financing, as Nvidia is providing funding to customers who then send money back to Nscale in the form of GPU purchases. The IPO may serve as a benchmark for later listings by major AI companies like Anthropic and OpenAI.
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