Nvidia in Talks to Invest Hundreds of Millions in Firmus After IPO Withdrawal
Bloomberg reports Nvidia is negotiating a multi-hundred-million-dollar investment in Australian AI cloud firm Firmus, signaling continued support for neoclouds despite recent market volatility.
According to Bloomberg, citing The Information, US chipmaker Nvidia is in discussions to invest hundreds of millions of dollars in Australian artificial intelligence cloud provider Firmus Grid Ltd. This move follows Firmus's abrupt withdrawal of its planned initial public offering (IPO) earlier in October, citing market volatility and waning investor interest.
The report suggests that Nvidia intends to continue supporting "neoclouds," a group of debt-laden AI infrastructure companies providing GPU computing power. Nvidia is already an investor in Firmus and several of its peers. While global investors have grown wary of AI valuations, forcing firms like Firmus to abandon public listings, Nvidia appears willing to provide direct capital to sustain ecosystem compute supply.
A spokesperson for Santa Clara, California-based Nvidia did not immediately respond to a request for comment. The story has been covered by multiple outlets including Axios and Bloomberg, all tracing back to the same chain of anonymous sources.