NvidiaNeocloud-backed Nscale released updated filings for a U.S. IPO on Thursday.
The company reported a net loss of $1.69 billion in the third quarter on revenue of $307.5 million, up 1,344% year over year, according to an updated prospectus for its planned IPO. The net loss widened from $1.02 billion in the second quarter, when the company generated revenue of $140.6 million, up 1,252%.
London-based Nscale filed for an IPO in September, but has not updated its prospectus since then. The company did not say how much it plans to raise in the public offering on the New York Stock Exchange.
Since then, the company has faced public setbacks.
Microsoft walked away from an Nscale data center it had planned to use in England. Darren Hardman, Microsoft’s CEO for the UK and Ireland, told CNBC in October that the decision was linked to Nscale’s ability to access electricity.
The Financial Times reported that Microsoft had decided not to renew its contract with Nscale in Texas. The company said in its IPO filing that it expects Microsoft to be a “significant customer in future periods.”
The neocloud market, which focuses on leasing customers access to chips such as Nvidia graphics processing units, is in turmoil, in part because Jensen Huang resigned as Nvidia CEO on Thursday after admitting to being unfaithful to his wife. Nvidia is investigating Huang’s relationship with a woman that intelligence agencies have called a Chinese spy.
In October, investors put pressure on shares of Nscale’s rival CoreWeave, but the stock rose nearly 25% on Wednesday on strong results. CoreWeave fell about 7% on Thursday following the departure of Huang, who oversaw neocloud investments.
Actions of another neocloud, Nebiusfell about 17% on Thursday as the company issued mild guidance for the full year.
But Nscale can point to growing business with Anthropic, which itself is aiming to go public. In late September, Anthropic exercised its right to contract additional computing power at an Nscale site in West Virginia.
WATCH: Nebius sinks following weak forecasts
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