AI cloud provider Nscale files for US IPO
What's the story
Nscale, a cloud provider that specializes in infrastructure for artificial intelligence (AI) models, has filed to go public on the New York Stock Exchange. The company plans to trade under the ticker symbol "NSCL." In its initial public offering prospectus, Nscale reported a net loss of $1.02 billion on revenues of $140.6 million for the first half of 2026. This is a significant increase from last year's net loss of $368.9 million and revenue growth of 1,252% from $10.4 million.
Industry landscape
Nscale's position in the competitive cloud landscape
Nscale competes with established cloud providers like Amazon, as well as newer AI-focused providers such as CoreWeave and Nebius.
The company has $56.4 billion in remaining performance obligations, according to its IPO prospectus.
Major tech companies including OpenAI and Anthropic have partnered with Nscale for their computing needs since the launch of ChatGPT in 2022.
Microsoft has also signed a deal with the company.
Strategic moves
Nscale's recent acquisition plans and board changes
Nscale has been diversifying its offerings by handling inference requests for a variety of models.
The company also announced plans to acquire startup Anyscale in July, a move that would further bolster its capabilities in building AI models.
Last week, former OpenAI, Instacart, and Meta executive Fidji Simo was joining the board of Nscale after stepping down as OpenAI's product and business chief due to medical leave.
Company growth
Company profile and major investors
As of August 31, Nscale had over 1,000 full-time employees and held 25,000 active GPUs with five active data center sites.
The company has a line of sight to 10 gigawatts' worth of computing power while carrying more than $8 billion in debt.
It emerged from stealth mode in 2024 as a spinoff of cryptocurrency mining firm Arkon Energy.
Its investors include Blue Owl, Dell, NVIDIA Fidelity, and Point72.