Nvidia-backed AI firm Firmus withdraws IPO plans

Australian AI data center operator Firmus has withdrawn its planned mega initial public offering (IPO), citing market volatility and conditions, the company informed CNBC via email.

The company's board determined that the proposed offering terms did not adequately reflect its business strength and long-term growth outlook. Consequently, the board concluded that proceeding with the offer was not in the best interests of the company and its shareholders.

Firmus had reportedly aimed to raise $5 billion through the IPO, which would have valued the company at approximately $30.6 billion. This valuation was nearly triple its valuation from August. The company now intends to pursue capital from private markets and explore alternative public and private market options.

Nvidia is a significant backer of the firm. In August, Firmus announced a $2 billion funding round supported by investors including Nvidia, Coatue Management, Blackstone, and Jane Street. This brought its total equity raised over the preceding year to over $3 billion, with a valuation exceeding $10.5 billion.

In November, Firmus also announced agreements with Meta to provide GPU computing capacity at its AI data centers in Southeast Asia to support Meta's AI research and model development.