London-based GPU cloud provider Nscale has told potential investors it holds approximately $51 billion in total contracted revenue as it prepares for a US initial public offering as early as September, according to a report from Bloomberg. Goldman Sachs and JPMorgan are leading the offering, with the company seeking a valuation of up to $25 billion. The figure represents a dramatic backlog for a relatively young infrastructure business and sets up what could be a critical test of public market appetite for AI compute providers.
The company's revenue trajectory shows explosive growth through early 2026. Executives reportedly informed investors that quarterly revenue surpassed $100 million in the second quarter of 2026, climbing from approximately $37 million in the first quarter and roughly $33 million for the entirety of 2025. The targeted $25 billion valuation marks a substantial jump from the $14.6 billion figure attached to Nscale's Series C round in March 2026, as reported by AI Business. The company's investor roster reportedly includes Nvidia, Microsoft, OpenAI, Aker, Nokia, Fidelity, and Blue Owl.
The report notes that the $51 billion contracted figure is a company-supplied number released ahead of an S-1 filing, not audited backlog, and the available reporting doesn't clarify how much represents firm take-or-pay commitments versus optional capacity. According to the Bloomberg coverage, it also remains unclear how concentrated the contracts are among one or two major customers, or what level of fresh capital expenditure Nscale requires to actually fulfill the commitments. The report cautions readers to treat the specifics as reported rather than settled facts.
The report argues that Nscale's listing would serve as the cleanest real-world test of whether public markets will back a pure-play AI infrastructure story at valuations approaching those of hyperscalers. If the company successfully prices at $25 billion in September, the analysis suggests, every private GPU cloud provider in the market gets repriced and the underwriters establish a blueprint for the next generation of listings. The composition of Nscale's investor base itself signals how closely the compute-supply layer has become intertwined with the customers it serves, the report observes.
What matters between now and pricing, the report concludes, is whether the disclosed contract structure withstands scrutiny and whether sentiment around AI infrastructure remains strong enough to support a valuation that has nearly doubled from the last private funding round in five months. If both conditions hold, Nscale becomes the benchmark; if either falters, the entire pipeline of neocloud IPOs slows behind it. For bankers and private infrastructure companies watching from the wings, September's outcome will either validate a new premium tier for compute providers or expose the limits of backlog-as-narrative in a market that's learned to ask harder questions about concentration risk and capital intensity.