Nvidia-backed Nscale keeps its biggest customer, Bytedance, out of its IPO filing
decoder ·
Nscale, an AI cloud provider backed by Nvidia, has excluded its largest customer, Bytedance, from the main prospectus of its planned US initial public offering. Although Bytedance accounted for 73 percent of Nscale's $33 million in revenue during 2025, it is not named in the 192-page S-1 filing, with only a reference to its Singapore subsidiary, Spring, appearing in an appendix. This arrangement stems from a May 2025 agreement where Spring utilized 2,304 Nvidia B200 chips in Norway, a deal financed by a $105 million loan from Macquarie and $35 million in equity. The contract allowed Bytedance to access Nvidia hardware restricted from direct purchase in China due to US export rules, though this strategy carries legal and reputational risks. Nscale anticipates that Bytedance's contribution to its revenue will fall below 20 percent this year as the company expands contracts with other major clients like Microsoft and Anthropic. The omission highlights the complex geopolitical dynamics surrounding AI infrastructure and semiconductor supply chains. Financial Times reported on these details regarding the IPO filing structure.
decoder