Nscale, the Nvidia-backed AI cloud company preparing to go public in the US, has left much of its connection with ByteDance out of its main IPO filing. This is notable because ByteDance was Nscale’s biggest customer in 2025.
According to the Financial Times, ByteDance made up 73% of Nscale’s $33 million revenue in 2025. The business relationship was connected to a deal that allowed ByteDance to use Nvidia GPUs at an Nscale data center in Norway.
The details have gained attention as Nscale targets a valuation of up to $35 billion in its planned New York Stock Exchange listing. The company filed its S-1 registration statement with the US Securities and Exchange Commission on September 18.
Nscale’s ByteDance Deal Emerges From Earlier IPO Filing
ByteDance is not named directly in Nscale’s main 2026 S-1 filing, according to the Financial Times and Fortune. The connection can instead be traced through an earlier draft filing. That filing identified a customer called Spring (SG) Pte. Ltd., a Singapore-based company linked to ByteDance.
In May 2025, Spring agreed to use 2,304 Nvidia B200 GPUs at Nscale’s data center in Glomfjord, Norway. The deal also helped Nscale secure financing for the facility, including a $105 million loan from Macquarie and $35 million in equity, according to reports based on the filings.
The arrangement allowed ByteDance to access Nvidia chips through a data center in Europe instead of buying them directly in China.
The Financial Times reported that the arrangement was legal, but could still create regulatory and reputational risks because of US restrictions on advanced AI chips and the wider tensions between the US and China.
Nscale’s Revenue Remains Concentrated Among a Few Major Customers
Nscale’s IPO filing shows that the company remains heavily dependent on a small number of customers. The company generated $140.6 million in revenue in the first half of 2026, a 1,252% increase from the same period in 2025.
At the same time, its net loss reached $1.02 billion, compared with a loss of $368.9 million in the first half of 2025. Nscale said its largest customer accounted for 52% of its revenue during the first half of 2026.
The company has warned investors that losing one or more major customers could have a significant impact on its business and financial results.
Nscale is trying to reduce this dependence by signing deals with other large AI companies. It has announced agreements with Microsoft and Anthropic, including an Anthropic agreement worth up to $45 billion for computing capacity at its West Virginia campus.
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Nvidia Deepens Ties With Nscale Through Investment and Computing Deal
Nvidia has become a major financial and business partner for Nscale as the company prepares for its IPO. According to the Financial Times, Nvidia has invested more than $2 billion in Nscale. Nvidia also agreed to invest $1 billion in Nscale’s recent $3.1 billion convertible bond financing.
Separately, Nvidia signed a $1.2 billion agreement to lease computing capacity from Nscale. This relationship gives Nscale access to Nvidia’s GPUs while also creating a major customer for Nvidia’s chips and data-center business.
Nscale was valued at $14.6 billion in a March funding round. If the company reaches its proposed $35 billion IPO valuation, that would mark a significant increase from its most recent private valuation.
Nscale Builds a $103 Billion Pipeline as AI Infrastructure Demand Grows
Nscale operates AI infrastructure in several regions and says it has a pipeline of more than 10 gigawatts of power capacity. The company also says its total contracted value has grown to more than $103 billion. However, much of this figure represents future business rather than revenue that Nscale has already earned.
The company is positioning itself as a provider of computing capacity for AI companies that need large numbers of GPUs, large amounts of electricity and data-center space.
Nscale’s planned IPO comes as investors continue to put large amounts of money into AI infrastructure. At the same time, there are growing questions about whether AI companies can generate enough returns to justify the huge cost of building and operating data centers.
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The IPO will give investors a closer look at Nscale’s rapid revenue growth, large losses and reliance on major customers. Its relationship with Nvidia and the earlier ByteDance-linked deal will also receive attention as the company seeks a valuation of up to $35 billion.
