Nscale Faces Reported Investor Pushback Over Planned $35B IPO Valuation Target

London-based AI cloud provider Nscale is facing investor pushback over its target IPO valuation of up to $35B, according to Bloomberg, as the company seeks to raise approximately $3B on the NYSE under the ticker NSCL. While Nscale reported about $103.4B in total contracted value tied largely to Microsoft $MSFT and Anthropic, only around 2.5% of that backlog was active as of late August, leaving first-half 2026 revenue at $140.6M against a $1.02B net loss. Operational bottlenecks are testing buyer appetite after Microsoft exited a planned UK data center project over power constraints and Nscale's Norwegian facility fell six months behind schedule, running at 6.4 MW operational against a 30 MW target. The $35B valuation target is roughly 2.4 times Nscale's $14.6B Series C valuation in March 2026 and follows a $3.36B pre-IPO convertible note raise on September 25 led by Third Point, with $1B from supplier Nvidia $NVDA and a conversion cap set at a $30B valuation. The resistance comes amid a broader neocloud pullback where rival Firmus abandoned its listing plans entirely and public comparable CoreWeave saw its shares fall roughly 15-25%.