Nscale IPO Tests Investor Demand for AI Infrastructure Companies

British AI infrastructure company Nscale is preparing for a public listing that will test investor interest in companies building the computing infrastructure behind artificial intelligence. The company’s IPO filing shows that a large share of its future revenue depends on a small number of major customers.

According to its IPO filing, Nscale has secured more than $103 billion in contracts, with around 85% linked to agreements with Microsoft and Anthropic. The Microsoft agreement represents about $43.8 billion in computing supply through 2033, while Anthropic has a separate $44.6 billion agreement.

AI Infrastructure Faces Customer Concentration Risks

Anthropic’s agreement depends on Nscale securing financing and meeting milestones that the company describes as stringent. The filing also states that Anthropic may cancel the agreement if it does not meet those conditions.

The situation reflects a wider trend across AI infrastructure companies, where revenue is often concentrated among a few large customers. A report highlighted by the Financial Times found similar patterns among other AI infrastructure providers.

Nscale is expected to list on the NYSE with a valuation target of about $35 billion, according to the Financial Times. At the same time, Bloomberg reported that the company is seeking up to $3 billion through the offering.

Growth and Expansion Plans

Nscale reported revenue of $140.6 million for the six months ended June 30, up from $10.4 million a year earlier. However, net losses increased to $1.02 billion during the same period.

The company recently received a $1 billion convertible debt commitment from Nvidia as part of a larger financing deal. Nscale operates data centres in Norway, Portugal, Texas, and West Virginia, with competitors including CoreWeave, Nebius, Lambda, and Crusoe.