AI cloud firm Nscale faces investor pushback over IPO valuation
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This comes after its investor Microsoft pulled out of a UK data centre deal with the firm Share [NEW YORK] Nscale is facing opposition to the valuation target it is pursuing in its initial public offering, according to people familiar with the matter, after a series of market setbacks for artificial intelligence companies. The Nvidia-backed data centre developer has been seeking an IPO valuation of about US$30 billion, the people said. A cohort of investors have lately urged that a valuation in the US$16 billion to US$19 billion range would be more likely to find favour with buyers, in light of factors including the implosion of Australian AI data centre company Firmus' IPO plan, some of the people said. A disconnect over valuation would add to recent challenges facing Nscale's planned IPO. Microsoft, an investor in the company as well as a client, pulled out of a UK data centre deal with Nscale , the company said on Sunday (Oct 18), after the site was contending with delays from power constraints. Sentiment toward AI infrastructure companies including chipmakers and cloud computing firms has turned as borrowing costs have risen and uncertainty over the technology's long-term payoff has grown. Five decades of milestones and moments that shaped Singapore's success story - told through our headlines. A discrepancy in expectations between a company seeking an IPO and potential...
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