One of Britain’s biggest AI companies is planning to float in New York in a new blow to London’s hopes of attracting tech listings.
London-based data centre company Nscale is preparing for a US initial public offering as soon as next month.
Nscale is targeting New York despite receiving vocal support from the UK Government. The move would prolong the struggles of the London Stock Exchange in attracting tech companies to list.
The company did not comment on its IPO plans.
The flotation could value Nscale, run by the Australian former cryptocurrency miner Josh Payne, at around $25bn (£19bn), according to tech news website The Information.
Founded two years ago, Nscale has former Facebook luminaries Sir Nick Clegg and Sheryl Sandberg on its board.
Nscale is touting potential contracts worth $51bn to entice investors ahead of the flotation, according to Bloomberg, although revenue in the second quarter was around $100m. While the flotation could be as early as September, the timeline could slip.
British tech companies including semiconductor giant Arm have chosen to list in the US instead of London.
Nscale, whose investors include Nvidia and Dell, recently raised $2bn in what was Europe’s biggest ever “series C”, or third stage, funding round.
If Nscale follows through with plans to go public in the US, it risks embarrassment for the Government.
Labour has championed the company as a centrepiece of Britain’s AI boom. Mr Payne has described his company as “the only full stack sovereign AI infrastructure provider in the UK”.