Nvidia-backed AI firm Firmus cancels historic $5B IPO

Australian AI data center operator Firmus, which is backed by Nvidia NVDA, has withdrawn its planned mega initial public offering, citing market volatility and conditions.

Firmus said its board determined that the terms of the proposed offering did not adequately reflect the strength of its business and long-term growth outlook, according to multiple media reports.

“The board therefore concluded that proceeding with the offer was not in the best interests of the company and its shareholders,” Firmus said in a statement. “Firmus will now pursue capital from the private markets and consider alternative public and private market options,” it added.

Firmus had reportedly planned to raise $5B in its IPO, pricing shares at A$11 apiece, which would have made it the second-largest new share sale in Australia’s history. The IPO valued the company at around $30.6B

The company unveiled a $2B funding round backed by Nvidia NVDA, Coatue Management, Blackstone BX, and Jane Street in August, bringing its total equity raised over the preceding year to more than $3B and its valuation to over $10.5B.

Valuation worries

Major tech giants, including Nvidia NVDA and SpaceX SPCX, actively continue to tap the debt markets for tens of billions of dollars, even as Anthropic ANTHROPIC prepares for a potential IPO targeting up to $100B.

In the latest sign of investors’ concerns about returns from AI, US-listed chipmakers SOX, which have soared over ​80% so far this year, fell 3.4% on Thursday…