Memo: Nscale CEO Josh Payne says it has "more than $100B in contracted revenue"; sources say it still plans to list by the end of 2026 at a $30B-$35B valuation

The projected $30B-$35B valuation means Nscale's IPO could unlock significant capital for further expansion.

Nscale, a data center group backed by Nvidia, has reportedly amassed over $100 billion in contracted revenue. CEO Josh Payne has described demand for its services as 'insatiable.' Despite this substantial revenue figure, the company is still planning an initial public offering (IPO) by the end of 2026. Current projections estimate Nscale's valuation to be between $30 billion and $35 billion at the time of its listing.

The sheer volume of Nscale's contracted revenue, exceeding $100 billion, signals a robust and rapidly growing market for specialized data center services, particularly those integrated with AI infrastructure. This figure suggests that enterprises are willing to commit significant long-term capital to secure computing power and data management capabilities, likely driven by the accelerating adoption of AI and machine learning. Nvidia's backing further validates the company's strategic direction and technological approach, positioning it as a key player in the future of AI-driven computing.

Nscale's ambitious IPO target, even with substantial existing revenue, indicates a strategy focused on aggressive scaling and market share acquisition, potentially at the expense of immediate profitability. The planned valuation range suggests investors are betting on sustained high growth and the company's ability to capitalize on the AI boom. Competitors and related hardware providers may face increased pressure as Nscale's successful public offering could spur further investment and consolidation within the high-performance computing and data center sectors.