UK-based neocloud company Nscale will test investor interest as it prepares to go public on the NYSE, with its revenue concentrated among two customers. According to the company’s IPO filing, total contract value exceeded $103 billion; approximately 85% of this comes from agreements with Microsoft and Anthropic.
- It will provide Microsoft with $43.8 billion worth of computing capacity through 2033.
- The agreement with Anthropic is worth $44.6 billion; however, it is contingent on financing and can be canceled if Nscale fails to meet targets described as “stringent.”
According to research by Sona Asset Management published in the Financial Times, AI infrastructure companies are highly dependent on a limited number of customers. Nscale rival CoreWeave derives 67% of its revenue from Microsoft, while data center company Applied Digital derives 67% of its revenue from Oracle and 30% from CoreWeave. Sona said this connection was not negative in itself, but that a disruption or strategy change at a major player could affect the sector.
According to the Financial Times, Nscale is expected to reach a valuation of $35 billion; according to Bloomberg, it is targeting $3 billion in proceeds from the IPO. The company’s revenue was $140.6 million and its net loss was $1.02 billion in the six-month period ended June 30; in the same period of the previous year, those figures were $10.4 million and $369 million, respectively.
Nvidia will provide Nscale with $1 billion in convertible debt as part of a broader $3.1 billion financing package. The company operates data centers in Norway, Portugal, Texas and West Virginia. Its rivals include:
- CoreWeave
- Nebius
- Lambda
- Crusoe
Its board includes Sheryl Sandberg, Nick Clegg and Fidji Simo.
Why it matters
Nscale’s IPO makes visible the extent to which growth at AI infrastructure companies depends on the decisions of a small number of major customers. The fact that a large portion of its contract portfolio is tied to Microsoft and Anthropic means that changes in these customers’ spending plans, financing or strategy could affect not only Nscale’s revenue but also related infrastructure companies. The fact that the Anthropic agreement depends on financing and targets set by the company shows that the full disclosed contract value cannot be interpreted as finalized revenue. Therefore, rather than the expected valuation and targeted IPO proceeds, how much of these contracts will convert into revenue despite the high losses and when the customer base will diversify remain open questions for investors’ assessment.
Background
IPO is not a new name in the FikirPilot archive: we have published 6 articles mentioning this name in the past 90 days; the most recent is dated September 20, 2026.
Term: IPO
An IPO is when a company’s shares begin trading on a stock exchange for the first time; while raising capital, the company also assumes the obligation to provide regular financial reporting to the public.