Nscale founder and CEO Josh Payne has sent an internal memo to reassure employees about the company’s future, asserting that demand for its AI data centre services remains 'insatiable'. The note comes as investor concerns over the sustainability of the AI boom have caused significant drops in 'neocloud' stock prices, including competitors Core Weave and Nebius. Payne acknowledged market concerns about funding future growth but highlighted that Nscale has over $100bn in contracted revenue, backed by long-term customer contracts and a robust capital structure.
Despite market volatility, Nscale is still aiming for a New York IPO by the end of the year, targeting a valuation of $30bn to $35bn, though sources suggest the final valuation may be lower than its last private round of $14.6bn. The company has faced additional pressure after Microsoft pulled out of a contract for its east London data centre, though Payne stated Microsoft remains committed to the partnership. Nscale, which counts Microsoft and Anthropic as its two largest customers, reported a net loss of $1bn on $141mn revenue in the first half of 2026.
The firm has over $103bn in total contracted value, though only $2.6bn is currently active. Anthropic's $45bn deal is contingent on Nscale meeting financing and delivery timelines for its West Virginia project, with talks ongoing for a second multibillion-dollar deal in the same state.
Source: Financial Times Companies · Summarized by HeadlinesBriefing