Firmus, an Australian AI data-centre operator backed by Nvidia, announced on 3 September that it would abandon a planned initial public offering that was expected to value the business at more than $30 billion. The company cited recent market volatility and prevailing conditions as reasons the listing would not serve the interests of the firm or its shareholders. It will instead look for private-market financing and will keep investors updated on any alternative routes.
Firmus specialises in constructing and operating liquid-cooled data centres, which it markets as “AI factories”. Its client roster includes major AI developers such as OpenAI and social-media giant Meta. The firm’s capital backing features Nvidia alongside private-equity houses Blackstone and Jane Street, underscoring a strong financial pedigree that has attracted significant attention from institutional investors.
Several prospective investors withdrew from the offering, citing valuation doubts. UniSuper, one of Australia’s largest pension funds, announced its decision not to participate, with chief investment officer John Pearce describing the business narrative as compelling but the price as unconvincing. Pearce also warned that the company might need to increase debt to finance growth, and lamented that the Australian Securities Exchange lacks suitably priced new listings.
The withdrawal reflects broader scepticism about the scale of capital flowing into AI ventures. Rayliant Investment Research’s chief research officer Phillip Wool said the aborted listing serves as a barometer of how far investors are prepared to continue funding AI when long-term profitability remains uncertain. He noted that early-stage firms like Firmus often rely on substantial borrowing to sustain expansion, heightening financial risk for shareholders.
Australia has emerged as a favored locale for data-centre projects, thanks to abundant renewable electricity, natural-gas reserves and ample land. OpenAI chief executive Sam Altman has previously suggested the country could become a global leader in the sector if it chooses to pursue it. Nevertheless, some community groups have voiced concerns over the environmental footprint and noise generated by large-scale facilities.
The Firmus episode coincides with a wider slowdown in AI-related equities. In early September, shares of Nvidia and Oracle slipped after reports indicated that OpenAI’s revenue growth was slower than previously thought. OpenAI itself has ruled out a public listing this year, citing safety considerations, while rival Anthropic and other AI firms continue to target valuations exceeding $1 trillion in prospective IPOs.