# Loss-making Nscale seeks $35 billion valuation

> The AI data center company is going public despite never turning a profit and warning of bankruptcy risk.
- Title: Loss-making Nscale seeks $35 billion valuation · Fortune
- Summary: The AI data center company is going public despite never turning a profit and warning of bankruptcy risk. Nscale is pursuing a massive IPO valuation while…
- Keywords: nscale, ipo, ai data centers, nvidia, going concern, losses, convertible debt, sec filing, Loss-making, seeks, billion, valuation
- Source: Fortune — https://fortune.com/2026/09/21/nscale-35-billion-ipo-nvidia-going-concern
- Author: Jim Edwards
- Read time: 1 min
- Topics: nscale, ipo, ai data centers, nvidia, going concern, losses, convertible debt, sec filing
## Nscale files for $35 billion IPO
The AI data center provider filed IPO papers with the SEC seeking a $35 billion valuation, despite losing $1 billion in the first half of 2026 on just $140.6 million in revenue.
## Losing money on every sale
Nscale's cost of revenue was $189.6 million against $140.6 million in sales, meaning it failed to make a gross profit. The company has never been profitable.
## Bankruptcy warning in prospectus
Nscale disclosed that management had "substantial doubt" about the company's ability to continue as a going concern, the language used when bankruptcy risk exists. The company warns it will need additional capital to fund operations.

> we will require additional capital to fund our business
## Nvidia injects $3.1 billion
On September 15, Nvidia provided $3.1 billion through convertible loan notes. Nscale also disclosed $56.4 billion in remaining performance obligations over the next seven years.
## High-profile board includes Clegg, Sandberg
Non-executive directors include former UK deputy prime minister Nicholas Clegg and former Meta COO Sheryl Sandberg. CEO Josh Payne earned $23.2 million in compensation.
## Key takeaway

Nscale is pursuing a massive IPO valuation while losing money on every dollar of revenue and disclosing serious doubts about its ability to survive without continued outside funding.