Firmus cancels $30 billion IPO due to AI valuation concerns

Firmus, the Nvidia‑backed AI data‑centre company, cancelled its planned listing on the Australian Securities Exchange, saying market volatility and prevailing conditions made a public debut unwise. The decision, announced in a statement released today, ends what could have been one of the country’s largest IPOs, with an initial valuation of more than $30 billion (about £22.6 billion). The company, which builds liquid‑cooled “AI factories” for clients such as OpenAI and Meta, operates in Australia, Singapore and other Asia‑Pacific locations.

The move comes as investors grow wary of the high valuations being applied to early‑stage AI infrastructure firms. “The market is uncertain and the valuation is not convincing,” said an unnamed investment firm that had been poised to participate. The company’s backers—Nvidia, Blackstone and Jane Street—have not commented on the decision, though Blackstone declined to respond when asked. Firmus said it would now seek capital from private markets and explore other public and private options, promising further updates to shareholders as those plans develop.

Key institutional investors, including UniSuper, the pension fund that had been set to invest, pulled out of the IPO. “We see a compelling story but the valuation is not,” said UniSuper chief investment officer John Pearce. He added concern that Firmus would need to take on more debt to fund expansion. Rayliant Investment Research’s chief research officer, Phillip Wool, warned that investors would be betting on a company still in its early stages that is likely to borrow heavily. The Australian data‑centre market is booming, driven by the country’s clean‑energy supply and ample land, but the sector’s rapid growth has sparked debate over long‑term returns.

If Firmus succeeds in raising private capital, it could still push ahead with its expansion plans, but the decision signals caution among investors about the sustainability of AI‑driven valuations. The company’s future will test whether Australia can remain a magnet for data‑centre investment while ensuring that firms can grow without over‑leveraging. The outcome will be watched closely by markets and policymakers alike, as they weigh the promise of AI growth against the risks of a heated valuation bubble.