Firmus, an Australian AI infrastructure startup supported by Nvidia, has canceled its planned $5 billion initial public offering. The company cited market volatility and unfavorable terms as the primary reasons for the decision to withdraw from the Australian Securities Exchange listing.
Investors expressed significant concerns regarding the company's proposed valuation of $30.6 billion. This figure represented a nearly threefold increase from the $10.5 billion valuation achieved just two months prior, following a $2 billion funding round in August involving Nvidia, Coatue Management, Blackstone, and Jane Street.
The company operates two data centers in Melbourne and Singapore, with five additional facilities currently under development. While Firmus has secured over 900 megawatts of contracted capacity, much of this infrastructure remains under construction, raising questions about the timeline for generating returns.
Firmus maintains agreements with Meta to provide GPU computing capacity and with OpenAI to supply dedicated infrastructure from planned facilities in Malaysia. Despite these partnerships, the company will now pivot back to private markets to secure capital while evaluating alternative options.
