Nebius vs Nscale

Palantir and Nebius partner to deliver a complete sovereign AI stack to Palantir customers

Nebius announces a strategic partnership with Palantir to deliver a complete sovereign AI stack, along with several major financial announcements including a $5.75 billion convertible senior notes offering and participation in upcoming investor conferences.

Neoclouds: New Bets on AI Infrastructure

The article analyzes the rise of Neoclouds, a new class of cloud providers specializing in GPU compute rental for AI workloads. It reports that the sector generated over $25 billion in revenue in 2025, with a projected CAGR of 58% to reach $400 billion by 2031. Key players include CoreWeave, Nebius, Together AI, SpaceX, Nscale, Crusoe, and Lambda. The piece highlights significant contracts with Microsoft, Meta, and Anthropic, as well as funding rounds and IPO activity. It also discusses risks such as heavy debt, depreciation, and customer concentration, exemplified by Meta's potential entry into cloud services, which caused stock drops for several Neoclouds.

• The Neocloud sector generated over $25 billion in revenue in 2025.
• CoreWeave's order backlog reached $99.4 billion in March 2026.
• Nebius revenue grew 684% year-over-year in Q1 2026 to $399 million.

EU Proposes Data Center Label to Measure AI Energy, Water Use

The European Commission has proposed a mandatory sustainability rating for data centers in the EU, aiming to make energy and water consumption comparable, similar to household appliance energy labels. Based on Article 33 of the EU Energy Efficiency Directive, the rating would apply to data centers with installed IT capacity of 500 kW or above, evaluating Power Usage Effectiveness, Water Usage Effectiveness, and renewable energy share, with stricter rules for green power claims. Labels would be generated automatically, updated annually, and made publicly accessible, with the first round planned for 2027. The article highlights rising data center energy demand—IEA projects global consumption to more than double to around 945 TWh by 2030—and discusses interim power solutions including gas turbines and nuclear/SMR investments. It also covers research by Silicon Austria Labs into energy-efficient AI hardware accelerators based on RISC-V and on-device AI to reduce data center load.

• European Commission proposes mandatory data center sustainability rating based on Article 33 of the EU Energy Efficiency Directive.
• Rating applies to data centers with installed IT capacity of 500 kilowatts or more; smaller centers can opt in.
• Metrics include PUE, WUE, and share of renewable energy, with stricter rules for green power certificates.

Nscale's IPO tests Wall Street's appetite for concentrated AI bets

British neocloud Nscale is preparing for an IPO on the NYSE, aiming for a $35 billion valuation and raising $3 billion. The company, spun out of Arkon Energy two years ago, has amassed over $103 billion in contracts, but 85% of that is tied to two customers: Microsoft ($43.8 billion) and Anthropic ($44.6 billion). Anthropic's deal is contingent on Nscale securing financing and meeting stringent milestones. Nscale reported revenue of $140.6 million for H1 2026, with net losses of $1.02 billion. The IPO will test investor appetite for companies with high customer concentration, a trend highlighted by a Sona Asset Management paper. Competitors include CoreWeave, Nebius, Lambda, and Crusoe.

• Nscale plans to list on NYSE with a target valuation of $35 billion.
• The company seeks to raise $3 billion in its IPO.
• Nscale has $103 billion in contracts, with 85% from Microsoft and Anthropic.

Nscale Files for US IPO Targeting $30B Valuation

British AI infrastructure company Nscale has filed its IPO prospectus with the US SEC, aiming to list on the New York Stock Exchange under the ticker 'NSCL'. The company seeks a valuation of around $30 billion, as reported by CNBC via Reuters, a significant jump from its last private round valuation of $14.6 billion. Nscale, which transitioned from Bitcoin mining to AI compute, reported first-half 2026 revenue of $140.6 million, a 1,252% increase, but also a net loss of $1.02 billion. Its order book stands at $103.4 billion, with Microsoft and Anthropic contracts totaling $88.4 billion. The company recently secured $3.1 billion in convertible notes, with Nvidia as a key investor. Nscale faces high customer concentration, a going-concern note, and dependence on a few suppliers. Goldman Sachs, J.P. Morgan, and Morgan Stanley are lead underwriters.

• Nscale filed an IPO prospectus with the SEC to list on the NYSE under the ticker 'NSCL'.
• Targeted valuation is approximately $30 billion.
• First-half 2026 revenue was $140.6 million, up 1,252% year-over-year; net loss was $1.02 billion.

Nscale Files Registration Statement for Proposed Initial Public Offering

Nscale has filed a registration statement for a proposed initial public offering, as announced on September 18, 2026.