Nvidia-backed data centre firm scraps IPO as AI valuation concerns deepen

Firmus, a company that builds liquid-cooled "AI factories" for clients including OpenAI and Meta and is backed by Nvidia, Blackstone and Jane Street, has abandoned plans for what would have been one of Australia’s largest stock market listings. The firm said recent market volatility and prevailing conditions made an IPO inadvisable for shareholders; it had been targeting a valuation above $30bn (about £22.7bn). Several institutional investors, including major Australian pension UniSuper, declined to participate over concerns the company was expensive and would need to take on substantial debt to fund growth. Firmus will now seek capital in private markets and consider alternative public and private options.

The withdrawal highlights wider investor unease about sky-high AI-related valuations and uncertain long-term returns despite heavy capital flows into the sector. Analysts characterize bets on early-stage data-centre builders as speculative, noting the industry’s capital intensity. Australia has become a hotspot for data-centre investment because of plentiful clean energy, gas and land, with more than 160 centres operating, but local opposition over environmental impacts and noise persists. The collapse of the IPO bid comes amid broader turbulence for AI stocks and cautious signals from big AI players about public listings.