Nscale Omits ByteDance Revenue Dependence in $35 Billion IPO Pitch

Nscale Global Holdings Limited, an AI cloud provider backed by Nvidia, omitted its heavy financial reliance on ByteDance from its primary pitch for a $35 billion U.S. initial public offering. ByteDance, the parent company of TikTok, accounted for 73% of Nscale's 2025 revenue, totaling $33 million, and 52% of its revenue through the first half of 2026.

ByteDance used Nscale's cloud facilities in Norway to access advanced Nvidia AI chips, effectively bypassing U.S. trade restrictions that prohibit such purchases in China. While the arrangement is legal, it creates regulatory and reputational risks for Nscale amid ongoing U.S.-China technology competition. The relationship was absent from Nscale's S-1 filing, though it appeared in a draft registration statement as a loan security from Macquarie involving a ByteDance subsidiary, Spring (SG) Pte. Ltd.

Nscale has recently diversified its client base, signing significant long-term contracts with Microsoft and Anthropic. The Microsoft agreement is valued at $43.8 billion through December 2033, while the Anthropic contract is valued at $44.6 billion.