Nscale’s IPO tests Wall Street’s appetite for concentrated AI bets

Nscale's upcoming IPO will test investor appetite for a company whose revenue is heavily concentrated in just two customers, Microsoft and Anthropic, which account for about 85% of its $103 billion contract backlog. The British AI data center developer holds a $43.8 billion compute supply deal with Microsoft through 2033 and a $44.6 billion agreement with Anthropic, though the latter is contingent on Nscale securing financing and meeting "stringent" milestones. The company reported $140.6 million in revenue for the first half of 2026, up from $10.4 million a year earlier, but net losses widened to $1.02 billion. Nscale plans to list on the NYSE at a $35 billion valuation, seeking to raise $3 billion. Nvidia recently agreed to provide $1 billion in convertible debt as part of a $3.1 billion financing round. The company, spun out of Arkon Energy two years ago, operates data centers in Norway, Portugal, Texas, and West Virginia, and counts former Meta executives Sheryl Sandberg and Nick Clegg on its board.