Nvidia-backed Nscale released updated IPO paperwork showing a widening loss in the third quarter. The company reported a net loss of $1.69 billion on $307.5 million in revenue, up 1,344% year over year. The loss grew from $1.02 billion in the second quarter, when revenue was $140.6 million, up 1,252%.
The London-based neocloud company filed to go public in September but has not updated its prospectus until now. It did not disclose a target amount for the offering on the New York Stock Exchange.
Nscale has faced recent setbacks. Microsoft ended a planned data center deal in England due to Nscale's ability to access electricity, according to Darren Hardman, Microsoft's CEO for the U.K. and Ireland, speaking to CNBC in October. The Financial Times reported that Microsoft decided against renewing a contract with Nscale in Texas. Nscale said in its IPO filing that it expects Microsoft to be a "significant customer in future periods."
The company counts Anthropic as a growing customer. Anthropic exercised its right to contract for additional computing power at an Nscale site in West Virginia in late September. Anthropic itself is aiming to go public.
The neocloud sector has experienced turbulence following Jensen Huang's resignation as Nvidia's CEO on Thursday. Huang admitted to being unfaithful to his wife, and Nvidia is investigating his relationship with a woman whom intelligence agencies have called a Chinese spy. Nvidia has overseen investments in the neocloud space.