Nvidia 投资的 AI 数据中心公司 Firmus 撤回 IPO
A failed initial public offering from Nvidia-backed Firmus
Nvidia 投资的 AI 数据中心公司 Firmus 本周尝试上市，但因投资者拒绝认购而撤回 IPO，其估值原定为 300 亿美元，本将成为澳大利亚史上最大 IPO。
Lots of news, as usual. AI continues to dominate much of the political discourse, in part because spending on things like data centers has exploded while spending on everything else we need, from housing to education to manufacturing, has declined. Meanwhile, the Pope continues to deliver hot takes, reminding us there are hugely significant moral questions underlying the political and economic debates:
Before we get to the Good and the Bad news, after the jump for paid subscribers only, I want to highlight an important but little-noticed story that has implications for the AI bubble, and particularly, for the most valuable company in the world, Nvidia. Nvidia is the center of the AI revolution, with its software layer CUDA and its AI chips dominating training and inference for models. It is worth $6 trillion, and its CEO, Jensen Huang, is now a global superstar who regularly sits down with national leaders and puts Donald Trump on speakerphone at major conferences.
Nvidia, despite its immense profits and prestige, is known for doing something a bit scuzzy, called “circular financing.” That is, it invests in its own customers so they can buy its chips. Sometimes it goes through multiple layers, like investing in OpenAI, which buys from Oracle, which buys from Nvidia. But there are a host of smaller AI companies in which Nvidia, as well as hedge funds and banks, have put a lot of money. And one of them, a little noticed AI data center company called Firmus, tried to sell shares to on the stock market this week. Yet investors revolted, and the company had to scrap its initial public offering.
Aside from Nvidia, Firmus was backed by blue chip financial firms Jane Street and Blackstone, and it was set to become Australia’s biggest IPO ever, at $30 billion in valuation. So this failure is a big deal, and it raised eyebrows all over Wall Street.
What happened? It turns out, Firmus executives got a little too greedy. In a normal initial public offering, companies restrict insiders from selling their shares for a time period. There are a few reasons to do so. First, restricting insiders sales is a vote of confidence in the new firm, a statement from executives and early investors that “hey yeah we want your money investors, but we have skin in the game in the form of owning our own stock.” Second, it’s a statement that the stock won’t be met with a lot of immediate selling pressure in the markets, since insiders can’t dump their shares.
This time, however, Firmus set up terms to let them sell immediately, meaning those who were most in-the-know wanted to cash out ASAP. That looks bad, a clear indication that insiders don’t think the company is a valuable going concern but see it as a temporary vehicle for self-enrichment. On a practical level, huge selling pressure would have flooded the market and crushed investors. So money managers, after being harmed with Paramount bonds, SpaceX, and a number of others, refused to bid, and the banks behind Firmus had to pull the offering. It’s one of the biggest flops in recent capital markets history.
What matters here are three things. First, the Firmus IPO was backed by the most prestigious companies in AI. Second, there are many companies like Firmus. And third, the company’s co-founder, Oliver Curtis, has a criminal background in stock manipulation, and yet the banks still went ahead with the offering. Yes, you read that right:
A decade ago, Oliver Curtis was at the lowest point in his life as he was sent to prison for pocketing $1.4 million in insider trading. Now, he is one of the richest people in Australia and preparing for a $6 billion move he sees as his redemption.
There’s another co-founder of Firmus, Tim Rosenfeld. He’s not a criminal, but he’s a cousin of Curtis, and his background was running a loss-making lingerie company called Steadmark.
What makes this situation more than a run of the mill scam is the involvement of Nvidia in Firmus and its criminal co-founder. Why would Nvidia get in bed with a crook? Well, Firmus is in an important industry segment that generates demand for Nvidia chips. Firmus is a “neocloud,” which are basically racks of servers funded by venture capitalists and Nvidia to buy chips and rent out computing power. Think of a neocloud as a way to keep debt off the books of the big AI firms. Neoclouds are a corporate shell containing real estate, chips, and financing. Often there are multiple layers of investors, phantom contracts or insider self-dealing, all wrapped in a narrative that they are engaged in “advanced AI” deployment.
This move has tended to work because of the involvement of the most prestigious players in AI. When Nvidia (or Google or Anthropic) backstops or does business with a neocloud, investors think there must be something there. So the neocloud’s valuation goes up a lot. Then that neocloud raises more money at a high valuation, announces more data centers, and orders more chips. That’s more profits for Nvidia, more investments, and so on and so forth.
These investments take place in the private market, with hedge funds and insiders thinking they are getting in at a low valuation. They often don’t even care if there’s a good business model here, since they think someone else will be left holding the bag. The business model never really made much sense, with Firmus starting as a bitcoin miner, before pivoting to AI. But it didn’t matter, because Firmus was about to sell shares to the last set of investors out there - you and me in the public markets. Fortunately, it looks like the public market participants have wisened up, at least in this case.
Firmus, however, is not the only scam in the AI space. Many such neoclouds started as bitcoin miners before jumping to the AI boom, often funded by a prestigious AI firm like Nvidia. And that suggests there’s something systemic going on.
Here are a few other neocloud or adjacent plays: There’s TeraWulf, which has big leasing deals with Anthropic and Google, and whose backers have been allegedly caught engaged in market manipulation. Google bankrolled the company’s shift from bitcoin mining to AI data center. Here’s Grizzly Research:
Our research uncovers that TeraWulf’s third-largest shareholder is an entity controlled by the wife of John O’Rourke, the disgraced CEO of Riot Blockchain, who was charged for his part of a $27 million “Lucrative Market Manipulation Schemes” by the SEC.
There’s Sharon AI, a competitor to Firmus, which also has deals with Nvidia and is backed by Oaktree Capital management. Here’s Sharon AI’s owner, who was involved in a mysterious fire:
James Manning’s colourful past involves owning Sydney’s historic White Bay hotel. He was interviewed by police after the site burnt down in 2008. Manning isn’t a familiar face, and not running a multibillion-dollar ASX-listed company. But his AI “neocloud” operator listed on the Nasdaq earlier this year.
There’s Applied Digital. According to the Bear Cave, this company started by providing staff to production companies, pivoted to plasma technology, then processing potatoes, then to blockchain, and finally to AI with financing from Nvidia in 2024. However, here it gets creepier, since Nvidia sold its stake in 2026, after Applied Digital had bought its chips with billions in borrowed money.
There are so many of these dodgy firms with no obvious business model and billions or tens of billions of valuation. Nscale. Celsius Mining. Coreweave. Nebius. Crusoe. SB Energy. Hut 8. Lancium. Iren. Bitdeer. And so on and so forth. With lots of stories like this.
How did I hear of this situation? Well there’s a document floating around Wall Street that describes this set of companies. Short-sellers, and there aren’t that many left, know the best way to understand where the scammers are isn’t to look at a particular industry sector, but to follow the scammers from industry to industry. As a contact put it, “This is like the SPAC craze of 2021. Whatever the hot thing of the day is, that is what the grifters will gravitate to. Shell companies did reverse takeovers with Chinese firms, the biotech bubble, shale, and others. Stock promoters will promote.” In other words, the same people just move from scam to scam, since unethical stock promotion itself is their business.
This whole scene is reminiscent of a specific part of the global financial crisis in 2008, which had a similar dynamic. Subprime lenders like Ameriquest were fly-by-night operations that somehow suddenly grew into multi-billion dollar lenders from 2003 onward. These guys weren’t particularly good at credit analysis, they were simply promoters willing to break the law. As Joe Nocera and Bethany McLean wrote in All the Devils Are Here, some salesmen were using meth or cocaine to lend more money to bad credit risks.
Now, at some level, this situation made no sense. Lending out money that was sure not to be paid back is a bad business. However, there is one way in which losing money deliberately can be quite profitable. If you are charging fees on your loans, and the money you are losing is not yours, then it works out great, at least for the scammer. But how did these operators get access to huge amounts of capital?
Here’s where the analogy to Nvidia comes in. The actual prestigious actors losing other people’s money were companies like Goldman Sachs, Deutsche Bank, Morgan Stanley, and so forth, who were backstopping these subprime lenders with warehouse lines of credit. This loan was a special kind of facility that let the subprime lenders keep lending, and then send the mortgages they were creating to Wall Street, where they would be processed into mortgage-backed securities.
These securities were then sold to pension funds, who bore losses. Sometimes, as Naked Capitalism noted, Goldman was even shorting these securities, so they wanted bad credit risks. At any rate, the prestige of Wall Street banks masked the obvious graft going on, and the credit tripwires that ordinarily would have slowed a credit cycle. Michael Lewis wrote up a fake version of this story in The Big Short, portraying Wall Street bankers as foolish instead of on the take.
Since we never fixed anything in our credit markets, we keep having such scams, whether the fracking guys, the China reverse mergers, WeWork, crypto and Sam Bankman-Fried, and now, the AI neoclouds. But the scamming isn’t just a result of grifters who want to steal, those kinds of people are always around. It’s that Nvidia, with its immense prestige on Wall Street and access to power in DC, is playing the role of Goldman in 2005. And with the important exception of Elizabeth Warren, there’s not a lot of interest in reimposing any controls on capital.
That’s not good. It’s also not surprising.
All that said, the residual memory of scams and crises and bailouts among the public is real, and impossible to ignore. And in a few weeks, voters may decide they’d like to have Elizabeth Warren holding the gavel running the Senate Banking Committee.
And now, the rest of the monopoly news round-up. Lots of interesting updates, including a major new lawsuit against hotel booking site Expedia, and more handouts for airlines from by 90’s Real World cast member and current Transportation Secretary Sean Duffy. Read on for more after the flip.
来源：Hacker News · thebignewsletter.com