Nscale faces investor pushback over NYSE IPO valuation

Some investors want AI cloud firm Nscale valued at $16B–$19B in its planned New York Stock Exchange initial public offering, well below the level the company is seeking, Bloomberg reported on 18 October.

Bloomberg said, citing the gap, that Nscale is seeking a valuation of $30B–$35B. The investor range is roughly half that figure.

According to the report, investors cited the company's Norwegian flagship site, which is running at 6.4 MW against a target of 30 MW.

Investors also pointed to Nscale's contracted backlog of $103.4B. Only about 2.5% of that backlog is currently active, according to the report.

The pushback follows a slide in CoreWeave's shares and bonds on fears over interest rates. The move is a sign of investor caution towards AI infrastructure companies.

The details here are drawn from a secondary summary of the Bloomberg report. Nscale has not announced final IPO pricing or timing.