$30bn IPO Scrapped by Nvidia-Backed Firmus Amid AI Doubts

Firmus has scrapped plans for a stock market listing that would have valued the Nvidia-backed data centre operator at more than $30bn (£22.65bn), citing "recent market volatility and prevailing market conditions," according to BBC News.

What did Firmus decide, and when?

The company called off what would have been one of Australia's biggest-ever stock market listings, announced Oct. 9, saying a public debut would not be in the best interests of the company or its shareholders, BBC reported. Firmus builds and operates liquid-cooled "AI factory" data centres for clients including OpenAI and Meta, with operations in Australia, Singapore and elsewhere in the Asia-Pacific region.

Why did Firmus pull the IPO?

Firmus did not name a single cause, pointing instead to broader market conditions, per BBC. One investment firm told BBC it had opted out of the offering over valuation concerns. The company said it will now pursue capital from private markets and "consider alternative public and private market options," adding it would update shareholders "as those options progress."

How big would the listing have been?

Firmus had set an initial valuation above $30bn (£22.65bn) for its planned debut on the Australian Securities Exchange, BBC reported. Backers include Nvidia, Blackstone and Jane Street. Blackstone declined to comment when contacted by BBC; Nvidia and Jane Street did not immediately respond to BBC's requests for comment.

What are investors saying about the price tag?

UniSuper, one of Australia's largest pension funds, was among the institutional investors that stayed out of the IPO. "We think that Firmus indeed has a compelling story. It just doesn't have a compelling valuation," UniSuper chief investment officer John Pearce said in an investor update cited by BBC. Pearce also told BBC he was concerned Firmus would need to take on more debt to fund its growth plans, adding: "It's disappointing. The [Australian Securities Exchange] needs new stories and this could have been one if it was correctly priced."

Rayliant Investment Research chief research officer Phillip Wool told BBC the scrapped listing tested how willing investors remain to keep funding AI infrastructure bets, describing an early-stage investment in Firmus as "more like a bet on a dream."

Why is Australia a focus for AI data centres?

Australia has drawn heavy data-centre investment because of abundant clean energy, natural gas supplies and available land, according to BBC. OpenAI chief executive Sam Altman said earlier this year that Australia could become a world leader in the industry if it chose to, BBC reported. The country already has more than 160 data centres, with additional projects planned, even as some residents have raised concerns about their impact.

By the numbers

• $30bn+ — Firmus' proposed IPO valuation, per the company
• 160+ — data centres currently operating in Australia, according to BBC
• 3 — named institutional backers: Nvidia, Blackstone, Jane Street

What to watch

• Whether Blackstone, Nvidia or Jane Street issue public statements on the decision
• Firmus' progress toward private-market funding and any revised valuation figures
• Whether other AI infrastructure firms adjust planned IPOs given Firmus' reversal
• Any shareholder update Firmus provides as it weighs "alternative" listing paths

Read the original reporting at BBC News.