Nscale, a British neocloud spun out of Australian cryptocurrency mining company Arkon Energy two years ago, is moving toward a public listing that will gauge investor willingness to back an AI infrastructure company whose revenue rests largely on two customers.

The company has accumulated more than $103 billion in contracts, according to its IPO filing. About 85% of that total comes from two agreements: a deal to supply Microsoft with $43.8 billion worth of compute through 2033, and a separate supply agreement with Anthropic valued at $44.6 billion. The Anthropic contract carries conditions, including a requirement that Nscale secure financing, and the AI lab can cancel or exit the deal if Nscale misses milestones the filing describes as stringent.

The concentration reflects broader ties across the AI industry. A recent paper by credit hedge fund Sona Asset Management, cited by the Financial Times, found that many AI infrastructure providers lean on a small number of customers. Nscale competitor CoreWeave draws 67% of its revenue from Microsoft, while data center builder Applied Digital gets 67% from Oracle and 30% from CoreWeave. Sona said such interconnection is not necessarily negative but noted that one setback or strategic change by a major player can ripple across the sector.

Nscale plans to list on the NYSE and expects a valuation of $35 billion, the Financial Times reported, while seeking to raise $3 billion, according to Bloomberg. For the six months ended June 30, the company reported revenue of $140.6 million, up from $10.4 million a year earlier, with net losses widening to $1.02 billion from $369 million.

Earlier this month, investor Nvidia agreed to supply $1 billion in convertible debt as part of a larger $3.1 billion financing package. Nscale was valued at $14.6 billion when it raised a $2 billion Series C led by Aker ASA and 8090 Industries.

Nscale competes with CoreWeave, Nebius, Lambda, and Crusoe, which last week said it raised $3.9 billion at a $30.9 billion valuation. The company runs data centers in Norway, Portugal, Texas, and West Virginia, and its board includes former Meta executives Sheryl Sandberg and Nick Clegg, along with former OpenAI executive Fidji Simo.

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