Nvidia-backed Nscale’s IPO filing shows widening losses

Nscale, the London-based AI cloud provider backed by Nvidia, filed updated paperwork for its planned U.S. initial public offering on Thursday, Nov. 12. The amended prospectus shows a net loss of about $1.69 billion on revenue of $307.5 million, according to CNBC. CNBC described these as third-quarter results. Reuters reported that they are preliminary figures for the nine months ended Sept. 30. Over that period revenue rose 1,344% from $21.3 million a year earlier, while the net loss grew from $433.3 million.cnbc.com+1

The amendment brings in July–September results for the first time. The company's original September filing only covered the first half of 2026, Reuters noted. That earlier filing showed a $1.02 billion loss on $140.6 million in revenue. Subtracting the six-month results from the nine-month totals implies third-quarter revenue of about $167 million and a quarterly loss of about $672 million, MLQ.ai calculated.theolympian.com+2

Costs, debt and contracts

Much of the nine-month loss came from non-cash or financing items, according to MLQ.ai's review of the filing. These included $629.9 million in fair-value adjustment losses, $339.8 million in depreciation and amortization, and $242.2 million in net interest expense. As of Sept. 30, the company held an estimated $3.58 billion in cash against $5.52 billion in debt. Its active and contracted deals were valued at $105.8 billion.mlq.ai

Nscale still has not said how much it plans to raise. It intends to list on the NYSE under the symbol "NSCL." Goldman Sachs, J.P. Morgan and Morgan Stanley are the lead underwriters, Reuters reported. Reuters also cited a Telegraph report that the company was considering pushing the listing into next year.theolympian.com

Microsoft setbacks and market turmoil

The filing comes after several setbacks with Microsoft. The software maker walked away from a planned Nscale data center in England. Darren Hardman, Microsoft's U.K. and Ireland CEO, told CNBC in October that the decision came down to Nscale's access to electricity. The Financial Times reported this week that Microsoft also chose not to renew a contract in Texas. Even so, Nscale says in the filing that it expects Microsoft to remain a "significant customer in future periods."cnbc.com

Investors in other neocloud companies have also had a rough week. CoreWeave shares fell on Thursday after Jensen Huang resigned as Nvidia's CEO, and Nebius dropped after issuing light full-year guidance, CNBC reported.cnbc.com

Nscale's deals with Anthropic give it another large customer. In late August the two companies signed agreements worth up to about $44.6 billion for capacity at Nscale's West Virginia campus. However, Nscale has not yet secured binding commitments for the financing needed to deliver that capacity, according to MLQ.ai.mlq.ai