British neocloud firm Nscale has announced a $3 billion IPO on the NYSE, aiming for a $35 billion valuation. While the company is scaling rapidly, investors are focusing on its high dependency on two major clients, Microsoft and Anthropic, which provide 85% of its $103 billion revenue pipeline.
Nscale, a British neocloud provider spun out of Arkon Energy, is moving forward with a public listing on the New York Stock Exchange. The company plans to raise $3 billion, aiming for an overall valuation of $35 billion. This IPO highlights the massive capital required to build and run artificial intelligence data centers, a space that has drawn huge interest from global tech players.
Financial disclosures for the first half of 2026 show that Nscale is growing quickly. For the six months ending June 30, revenue reached $140.6 million, a significant jump from the $10.4 million reported in the same period last year. However, this growth comes with heavy spending. The company reported net losses of $1.02 billion for the period, up from $369 million a year earlier, reflecting the high costs of expanding data center capacity in Norway, Portugal, and the United States.
For investors, the most significant risk is the company’s heavy reliance on a few customers. Nscale has a total contract pipeline worth $103 billion, but 85% of that value is tied to just two entities: Microsoft and Anthropic. A deal to supply Microsoft with compute services accounts for $43.8 billion of this total through 2033. The partnership with Anthropic is similarly large, at $44.6 billion, but includes strict performance conditions that give the client the power to end the deal if service standards are not met.
The AI infrastructure market is highly competitive. Nscale operates in a crowded field alongside rivals like CoreWeave, Nebius, Lambda, and Crusoe, the latter of which recently reached a valuation of $30.9 billion. To strengthen its position and balance sheet, Nscale secured $1 billion in convertible debt from Nvidia, a key backer in the AI hardware industry.
Going forward, the company must prove it can manage its significant cash outflows while reducing its dependence on its two primary clients. Investors will likely watch closely to see if Nscale can win new customers and execute on its long-term contracts without facing disruptions. The company’s ability to turn its massive infrastructure investments into sustainable profit will remain a central point of interest.