Firmus Grid cancels $5.5B IPO after investors reject $30B valuation
Business
Firmus Grid Ltd. a data center company backed by NVIDIA, just canceled its $5.5 billion IPO after investors weren't convinced by its $30 billion price tag.
This is a sign that people are getting more cautious about pouring money into AI companies in Asia, and Firmus is now exploring a private round with existing investors.
Investors favor proven revenue companies
These days, investors are less interested in flashy tech startups without proven revenue and are focusing on companies that actually make money, especially with rising interest rates making everyone more careful.
Firms like Firmus face tougher questions if they can't show proven revenue and a track record, while hardware and chip makers that are already reporting profits are still retaining support.