Nvidia-Backed Nscale Files Updated IPO Prospectus Showing $1.69B Q3 Loss

Nvidia-backed neocloud Nscale released an updated prospectus for its planned U.S. initial public offering on Thursday, reporting a third-quarter net loss of $1.69 billion on $307.5 million in revenue, up 1,344% year over year. The loss widened from $1.02 billion in the second quarter, when revenue was $140.6 million, up 1,252%.

London-based Nscale filed to go public in September and had not updated its prospectus since. The company did not say how much it plans to raise in the listing on the New York Stock Exchange.

The filing lands as the neocloud market, which rents access to chips such as Nvidia (NVDA) graphics processing units to clients, faces turmoil. Microsoft walked away from an Nscale data center it had planned to use in England; Darren Hardman, Microsoft's CEO for the U.K and Ireland, told CNBC in October the decision concerned Nscale's access to electricity. The Financial Times reported Microsoft decided against renewing a contract with Nscale in Texas. Nscale said in its filing it expects Microsoft to be a significant customer in future periods.

Part of the tumult traces to Nvidia (NVDA), whose CEO Jensen Huang resigned Thursday. CoreWeave (CRWV) shares advanced almost 25% on Wednesday on strong results before pulling back about 7% on Thursday. Nebius (NBIS) shares fell about 17% on Thursday after the company issued light full-year guidance.

Nscale can point to growing business with Anthropic, which exercised its right to contract for additional computing power at an Nscale site in West Virginia in late September. Anthropic is itself aiming to go public.

In delayed trading, Nvidia (NVDA) was down 4.34%, CoreWeave (CRWV) down 6.86% and Nebius (NBIS) down 16.84%. The next dated event is Nscale's planned New York Stock Exchange listing, for which it has not set a raise amount or date.