Nscale plans to list on the NYSE under the ticker symbol NSCL in an initial public offering that seeks to raise $3 billion. The company expects to be valued at $35 billion in the listing, according to its filing with the Securities and Exchange Commission.

The agreement with Microsoft is worth $43.8 billion and runs through 2033, while the supply agreement with Anthropic is valued at $44.6 billion. Despite the size of the backlog, only $2.6 billion of the total contract value was active as of the end of August.

The company has amassed over $103 billion worth of contracts since it was spun out of Australian cryptocurrency mining company Arkon Energy two years ago. Nscale operates data centers in Norway, Portugal, Texas, and West Virginia.

To support its operations, Nscale has secured $3.1 billion in convertible notes, with $1 billion allocated to Nvidia Corp. as part of a financing deal announced on September 1, 2026. Nvidia also guaranteed approximately $860 million in lease obligations for Nscale.

The agreement with Anthropic includes a clause allowing termination if Nscale fails to meet performance milestones categorized as stringent in the filing. The deal is also contingent on Nscale obtaining necessary financing.

Sheryl Sandberg, Nick Clegg, and Fidji Simo serve on Nscale's board of directors. The company was previously valued at $14.6 billion when it raised a $2 billion Series C round led by Aker ASA and 8090 Industries.

Timeline

Nscale was spun out of Australian cryptocurrency mining company Arkon Energy two years ago on September 22, 2024. For the six months ended June 30, 2025, the company reported net losses of $369 million. In the following year, for the six months ended June 30, 2026, Nscale reported net losses of $1.02 billion and revenue of $140.6 million.

On September 1, 2026, Nvidia agreed to provide Nscale with $1 billion in convertible debt as part of a larger $3.1 billion financing deal. On September 18, 2026, the company disclosed in its IPO filing with the SEC that it has a backlog of $103.4 billion in total contract value, with 85% of that coming from agreements with Microsoft and Anthropic. The filing on the same date outlined that Nscale's agreement with Anthropic includes a clause allowing termination if Nscale fails to meet performance milestones. Also on September 18, 2026, the filing disclosed that Nscale has secured $3.1 billion in convertible notes, with $1 billion allocated to Nvidia Corp.

What's New

Further context indicates that in 2023, a similar AI data center company, CoreWeave, went public on the NYSE with a valuation of $40 billion but saw its stock price drop by 60% within a year due to construction delays and debt concerns. It was also reported that only $2.6 billion of Nscale's $103 billion in total contract value was active as of the end of August. Nscale has applied to list on the NYSE under the ticker symbol NSCL.

Nvidia guaranteed approximately $860 million in lease obligations for Nscale. Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as lead underwriters for Nscale's IPO.

Why It Matters

The scale of Nscale's proposed valuation and fundraising shows the continued capital intensity of the AI infrastructure sector. With a potential $35 billion valuation and a $3 billion raise, the company is positioning itself as a major provider of compute power, backed by long-term agreements with Microsoft and Anthropic that span through 2033.

However, the reliance on contingent contracts and large net losses presents financial risks. The precedent set by CoreWeave, which saw its stock price drop by 60% within a year of its 2023 IPO due to construction delays and debt concerns, illustrates the volatility investors may face. The requirement for Nscale to meet stringent performance milestones to retain its Anthropic contract adds another layer of operational pressure as the company transitions from a private entity to a public one.