AI Business
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Nscale reports increased losses in updated IPO filing amid market challenges
Nov 12, 2026
AI Summary
Nscale, backed by Nvidia, has revealed a third-quarter net loss of $1.69 billion despite a significant revenue increase. The company faces challenges, including setbacks with Microsoft and a tumultuous neocloud market, but continues to grow its business with Anthropic.
- Nscale released an updated prospectus for its planned U.S. initial public offering, showing a third-quarter net loss of $1.69 billion on $307.5 million in revenue, a year-over-year increase of 1,344%. The loss widened from $1.02 billion in the previous quarter, which had revenue of $140.6 million, up 1,252% year-over-year.
- The company filed to go public in September but has not disclosed how much it aims to raise in the offering on the New York Stock Exchange.
- Nscale has faced setbacks, including Microsoft withdrawing from a planned data center in England due to concerns about Nscale's access to electricity. Microsoft also chose not to renew a contract with Nscale in Texas, although Nscale expects Microsoft to remain a significant customer in the future.
- The neocloud market is experiencing turmoil, partly due to the resignation of Nvidia CEO Jensen Huang amid personal controversies. This has affected Nscale's competitors, with CoreWeave's stock fluctuating and Nebius experiencing a drop in share value following weak guidance.
- Despite these challenges, Nscale is expanding its business with Anthropic, which has contracted for additional computing power at Nscale's West Virginia site.
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