Nscale is considering pausing its initial public offering until 2027, The Telegraph reported on November 10, in a report relayed by Reuters. Executives at the London based AI cloud provider and data center developer are assessing whether to delay after a selloff in AI stocks. Nscale declined to comment, Reuters said it could not immediately verify the report, and no decision has been announced.
The company filed for a New York Stock Exchange listing in September under the ticker NSCL, with a valuation of about 35 billion dollars attached to the listing in reporting. Its March funding round raised 2 billion dollars at a 14.6 billion dollar valuation, according to its filing, so the listing target would more than double that mark within a year. Some investors are reported to see market value at between 16 billion and 19 billion dollars.
The filing’s centre of gravity is Microsoft. Nscale’s preliminary prospectus says Microsoft’s statements of work are worth up to about 43.8 billion dollars through December 2033, excluding options. Reuters reported days ago that Microsoft declined an option to expand its existing agreement for more capacity at a Texas data center, a decision first reported by the Financial Times. The existing Texas contract and Nscale’s contracted backlog are unaffected, and the company is in talks with other customers for the remaining capacity.
Timing adds pressure. The registration statement filed on September 18 carries financial statements through June 30, and under US rules the company has only days to start trading before it must publish newer results. A delay into 2027 would therefore mean a refreshed filing as well as a repriced story.