NvidiaNeoCloud-backed Nscale on Thursday released updated filings for its U.S. initial public offering.
The company’s third-quarter net loss was $1.69 billion on revenue of $307.5 million, an increase of 1,344% from the same period last year, according to the latest prospectus for its planned initial public offering. The net loss widened from $1.02 billion in the second quarter, when the company had revenue of $140.6 million, up 1,252%.
London-based Nscale filed to go public in September but has not updated its prospectus since then. The company did not say how much it intended to raise from its initial public offering on the New York Stock Exchange.
Since then, the company has faced public setbacks.
microsoft The company withdrew from the Nscale data center it had planned to use in the UK. Darren Hardman, Microsoft’s CEO for the UK and Ireland, told CNBC in October that the decision was related to Nscale’s access to power.
The Financial Times reported that Microsoft has decided not to renew its contract with Nscale in Texas. The company said in its IPO filing that it expects Microsoft to be a “significant customer in the future.”
The neocloud market, which focuses on renting access to chips such as Nvidia graphics processing units to customers, is in turmoil, in part because Jensen Huang resigned as Nvidia’s CEO on Thursday after admitting to being unfaithful to his wife. Nvidia is investigating Huang’s relationship with a woman whom intelligence agencies have described as a Chinese spy.
Investors put pressure on Nscale rival Coreweave’s stock price in October, but the company’s strong financial results sent the stock up nearly 25% on Wednesday. Coreweave fell about 7% on Thursday following the departure of Mr. Huang, who oversaw the investment in Neocloud.
Another neocloud share, Neviusfell about 17% on Thursday, after the company issued a tepid full-year outlook.
However, Nscale can point to its growing business with Anthropic, which is also aiming to go public. In late September, Anthropic exercised its right to contract for additional computing power at its Nscale site in West Virginia.
Attention: Nevius sinks due to weak predictions
