Nscale IPO filing shows widening loss as revenue surges

Nvidia-backed neocloud Nscale released updated IPO paperwork on Thursday, revealing a third-quarter net loss of $1.69 billion on $307.5 million in revenue, a 1,344% year-over-year increase. The loss widened from $1.02 billion in the second quarter, when revenue was $140.6 million, up 1,252%. London-based Nscale filed to go public in September but had not updated its prospectus since, and it did not specify the amount it intends to raise on the New York Stock Exchange. The company has faced setbacks, including Microsoft walking away from a planned data center in England and not renewing a Texas contract, though Nscale expects Microsoft to remain a significant customer. The neocloud sector has been turbulent following Nvidia CEO Jensen Huang's resignation Thursday, with rival CoreWeave and Nebius shares falling, though Nscale cited growing business with Anthropic.