Firmus Pulls $5 Billion IPO After Valuation Concerns
Nvidia-backed Australian AI infrastructure startup Firmus canceled its planned $5 billion initial public offering after investors questioned its proposed $30.6 billion valuation. The company cited market volatility and unfavorable offering terms, saying the deal did not reflect its business strength and long-term prospects. Firmus said it will now seek private capital and consider other public and private market options.
Firmus, an Australian AI infrastructure company backed by Nvidia, scrapped a planned $5 billion listing on the Australian Securities Exchange. Shares had reportedly been set at A$11, which would have made it Australia's second-largest new share sale.
The Sydney-based firm had raised $2 billion in August from Nvidia, Coatue, Blackstone, and Jane Street, lifting its valuation past $10.5 billion. By October it sought about $30.6 billion. It runs two AI data centers, in Melbourne and Singapore, with five more under development and over 900 megawatts contracted.
The canceled listing may cool near-term enthusiasm for AI infrastructure offerings, potentially affecting employees, private investors, and data-center partners awaiting expansion. If Firmus raises private capital instead, public-market scrutiny could be delayed, while Australian retail and institutional investors may lose a chance to participate. The episode could also encourage founders and backers to weigh durable revenue against rapid valuation jumps, with implications for how AI computing capacity is financed and built.