Nvidia in talks to invest in Firmus Grid after scrapped IPO- The Information

NVIDIA Corporation (NASDAQ:NVDA) is discussing an investment of hundreds of millions of dollars in Firmus Grid after the Australian AI cloud company scrapped its initial public offering plans, The Information reported late-Tuesday. 

Nvidia-- the world’s most valuable company-- already holds an investment stake in Firmus and several similar companies in the AI cloud sector. 

Firmus Grid operates as a neocloud provider, part of a group of AI cloud companies that have taken on debt to fund their operations.

The company had scrapped plans for an Australia listing earlier in October, citing recent market volatility that made going public against the best interests of its shareholders.

The company had initially announced plans for an IPO at a valuation of over $30 billion, which would have made it one of Australia’s biggest ever stock market listings.

But it scrapped said plans amid a global rout in AI and cloud company valuations, as investors questioned rising debt levels among neoclouds and whether elevated spending on AI infrastructure could be maintained in the long-term. 

Nvidia-backed CoreWeave Inc (NASDAQ:CRWV) was the worst hit by this rout, wiping out about 27% of its value in the past month.