Nscale’s IPO will test Wall Street’s appetite for concentrated AI bets once again

When British neocloud Nscale goes public, it will test public investors’ appetite for a stock whose revenue is tied primarily to two customers.

Since it was spun out of Australian cryptocurrency mining company Arkon Energy two years ago, Nscale has amassed over $103 billion worth of contracts, according to its IPO filing . But there’s a catch: Most of that, about 85%, comes from a deal to supply Microsoft with $43.8 billion worth of compute through 2033, and another supply agreement worth $44.6 billion with Anthropic.

Moreover, Anthropic’s agreement is contingent on Nscale obtaining financing, and the AI lab retains the right to walk away from or cancel the deal if Nscale fails to hit milestones that the filing explicitly categorizes as “stringent.”