Nscale updates IPO filing with wider loss as neocloud stocks slide

what happened

According to Seeking Alpha, London-based Nscale filed an updated registration statement for its U.S. IPO on the New York Stock Exchange. The company posted a third-quarter net loss of $1.69 billion on revenue of $307.5 million, up 1,344% year over year. The loss widened from $1.02 billion in the second quarter, when revenue was $140.6 million, up 1,252%.

Nscale did not say how much it plans to raise. Darren Hardman, Microsoft's U.K. and Ireland CEO, told CNBC that Microsoft withdrew from a planned Nscale data center project in England over concerns about the company's ability to secure enough electricity. The Financial Times reported that Microsoft also decided against renewing a contract with Nscale in Texas. The filing says Microsoft is expected to remain a “significant customer in future periods.”

On Thursday, CoreWeave shares fell 7% and Nebius dropped 17%, amid uncertainty around Nvidia and weaker-than-expected guidance from Nebius.

why it matters

The story matters for investors in the neocloud sector, which supplies GPU computing capacity for AI workloads. Uncertain customer demand and limited access to electricity raise risks to revenue and expansion plans, so investors will watch large client relationships and power supply closely.

market impact

Neocloud stocks such as CoreWeave and Nebius: the Microsoft pullback and Nscale's losses add pressure on the sector.

• ▼CoreWeave shares pressure down — investors worry about customer uncertainty and sector volatility after the Microsoft pullback
• ▼Nebius shares pressure down — weaker-than-expected guidance and sector uncertainty add to selling pressure

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