Nscale, the Nvidia-backed AI cloud provider, has excluded its most significant client, Bytedance, from the main prospectus of its planned US initial public offering. The Financial Times reports that the Chinese firm generated 73 percent of Nscale’s $33 million revenue in 2025 yet does not appear in the 192-page S-1 filing. An appendix merely references the company’s Singapore subsidiary, Spring. This arrangement follows a May 2025 agreement where Spring secured 2,304 Nvidia B200 chips at a facility in Glomfjord, Norway. That contract supported a $105 million loan from Macquarie alongside $35 million in equity to convert a former crypto mining data centre into an AI site. The deal allowed Bytedance to access Nvidia hardware unavailable within China by exploiting a specific gap in US export regulations. While permitted, the strategy carries legal and reputational risks. Nscale expects Bytedance’s revenue share to fall below 20 percent this year as contracts with Microsoft and Anthropic expand.
Removing the customer from the primary filing mitigates regulatory scrutiny while the company pursues its own growth trajectory. The move signals a shift away from reliance on a single major account without disclosing the relationship to US investors. This approach protects the listing process from potential complications tied to the specific nature of the hardware supply chain.
- Bytedance accounts for 73 percent of Nscale’s 2025 revenue.
- The Glomfjord facility previously hosted cryptocurrency mining operations.
- Nscale anticipates reducing dependence on Bytedance to under 20 percent.
