London-based AI data centre company Nscale is considering delaying its planned IPO, amid broader volatility in the AI market, the reported.

Nscale in September filed to go public on the New York Stock Exchange, with investors at the time hoping for a valuation of up to $35 billion (£26.2bn), according to the paper.

But some investors have reportedly said that recent market conditions indicated the valuation could be less than half of the figure.

Market slump

Nscale was valued at $14.6bn in a funding round earlier this year.

The company has faced an increasingly challenging market in recent weeks, as rising borrowing costs have created difficulties for AI companies debt-laden data centre projects.

Data centre scepticism

US elections last week meanwhile saw the victory of numerous candidates who had vowed to increase controls on data centres.

Shares in neocloud firms such as Nscale competitor CoreWeave have dropped sharply over the past month, while Australian neocloud Firmus in October cancelled an IPO that was to have sought a $30bn valuation.