Nscale updates IPO prospectus that shows widening loss

Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Key Points Nscale reported third-quarter financial details in an updated regulatory filing. The neocloud market has been in tumult, partly because Jensen Huang resigned as Nvidia's CEO on Thursday. However, Nscale can point to growing business with Anthropic, which itself is aiming to go public. Signage on a fence at the Nscale data center project in Barstow, Texas, on Oct. 15, 2026. Eli Hartman | Bloomberg | Getty Images Nvidia -backed neocloud Nscale on Thursday released updated paperwork for a U.S. initial public offering. The company had a third-quarter net loss of $1.69 billion on $307.5 million in revenue, which was up 1,344% year over year, according to an updated prospectus for its planned initial public offering. The net loss widened from $1.02 billion in the second quarter, when the company generated $140.6 million in revenue, up 1,252%. London-based Nscale filed to go public in September , but hasn't updated its prospectus since then. The company did not specify how much it intends 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 that it had planned to use in England. Darren Hardman, Microsoft's CEO for the U.K and Ireland, told CNBC in October that the decision had to do with Nscale's ability to get access to electricity. The Financial Times reported that Microsoft decided against renewing a 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 renting access to chips such as Nvidia graphics processing units to clients, has been in tumult, partly because Jensen Huang resigned as Nvidia's CEO on Thursday, after admitting to being unfaithful to his wife. Nvidia is investigating Huang's relationship with a woman whom intelligence agencies have called a Chinese spy. In October investors pressured shares of Nscale rival CoreWeave, but the stock advanced almost 25% on Wednesday on strong results. CoreWeave pulled back about 7% on Thursday following the departure of Huang, who has overseen investments in the neocloud. Shares of another neocloud, Nebius , fell about 17% on Thursday, with the company issuing light full-year guidance. 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 for additional computing power at an Nscale site in West Virginia. WATCH: Nebius sinks on weak forecast watch now VIDEO 1:53 01:53 Nebius sinks on weak forecast TechCheck Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.