Datacentre company Firmus’s high flying valuation may be coming back down to earth ahead of expected ASX debut

THE NEWS

What happened

Firmus Technologies, an Australian AI datacenter company poised for a major ASX listing, faces a severe valuation crisis just weeks before its debut. Originally valued at nearly $44 billion with backing from giants like Nvidia and Blackstone, the firm is now slashing its price or potentially shelving the IPO entirely due to investor skepticism regarding its financial losses and operational risks.

CONTEXT

Why it matters

Breaking: Firmus Technologies is slashing its valuation from $44bn or shelving its massive ASX IPO entirely. Despite backing from Nvidia and Blackstone, investors are wary of the company's losses and reliance on unbuilt facilities. The planned listing for late October is now in serious doubt.

AT A GLANCE

Key facts

• Firmus Technologies was recently valued at nearly $44 billion, a figure now being drastically reduced.
• The company has withdrawn from a scheduled parliamentary inquiry into AI amid frantic efforts to save the deal.
• Major investors including Nvidia, Blackstone, and Jane Street hold stakes but face skepticism over the company's losses.
• Firmus operates only two small sites while 97% of its contracted revenue depends on unbuilt facilities.
• The planned ASX listing was set for October 23 with a share price of $11, which is now in doubt.
• Analysts warn the company may be entering a market bubble phase similar to historical economic cycles.
• Operational hurdles include community backlash against datacenters and power constraints in target markets.