Firmus scraps $31 billion IPO valuation as investors question AI infrastructure hype

Australian data-centre developer Firmus Technologies withdrew its planned IPO on October 9 after prospective investors balked at a valuation of almost A$44 billion ($31 billion), despite backing from Nvidia and Blackstone.

A steep valuation jump

Firmus had sought to raise more than $5 billion in what could have been Australia’s largest flotation in nearly three decades. Its targeted valuation was triple that of an August funding round and roughly 23 times its value a year earlier.

Ambitions far ahead of operating capacity

The company aims to build one gigawatt of data-centre capacity, but only 42 megawatts—about 4.2% of the target—was operational. Its recent pivot from a largely Australian focus to expansion across Asia added questions about execution.

Firmus cited contracts with major customers including OpenAI, but comments from Australian partner CDC Data Centres about their joint venture raised further concerns.

Investors reassess AI infrastructure

The withdrawal came amid market volatility and growing scrutiny of AI-related companies. Reuters Breakingviews reported that rival CoreWeave shares had fallen 41% from a May peak.

Investors were also concerned that existing shareholders holding nearly 60% of Firmus could sell shares as soon as trading began, potentially adding early selling pressure.

What happens next?

Firmus said it would consider alternative public- and private-market funding options. The aborted listing highlights investors’ increasing focus on operating track records and credible valuations rather than AI growth projections alone.