Nvidia-backed AI data centre firm scraps mega stock market listing
Firmus said it had made the decision due to "recent market volatility and prevailing market conditions"
Australian AI data centre firm Firmus has canceled its plans for a major initial public offering (IPO) on the stock market. The decision was made due to recent market volatility and unsuitability of the company's valuation for shareholders. Firmus, which is backed by Nvidia and investment firms Blackstone and Jane Street, had aimed to list its company valued at over $30 billion.
One investment firm declined to participate in the IPO due to valuation concerns. Firmus, which specializes in building and operating liquid-cooled data centres for clients like OpenAI and Meta, will now seek capital from the private markets. The news comes amid concerns about the hundreds of billions of dollars poured into AI, with investors and analysts questioning the long-term returns potential.
Institutional investors such as UniSuper also decided not to take part in the IPO, citing valuation issues and potential increased debt for growth.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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