According to CryptoPotato, Northern Data AG, a German company specializing in high-performance computing infrastructure, is contemplating a U.S. initial public offering (IPO) for its AI cloud computing and data center divisions. The potential valuation for this IPO could reach up to $16 billion. The company is considering merging its cloud computing division, Taiga, with its data center operations, Ardent, to form a new entity for a potential U.S. IPO. The combined firm could be listed on the Nasdaq as early as the first half of 2025.
This move aligns with a resurgence in the U.S. IPO market, fueled by investor optimism about economic stability and a renewed interest in new listings in 2024. The launch of OpenAI’s ChatGPT has also increased demand for AI technologies, leading to substantial investments in the sector. Tech giants such as Microsoft and Alphabet Inc. have made significant investments in the infrastructure needed to support AI applications. Northern Data is currently discussing the IPO with potential advisors and plans to hire lead banks in the coming months. However, the company may decide not to proceed with the IPO based on the outcomes of these strategic discussions.
The Frankfurt-based company, which went public in 2018, has seen its shares drop by about 5% this year, bringing its market valuation to approximately €1.3 billion ($1.4 billion). In response to the declining business margins in crypto mining, Northern Data has been modifying its energy-intensive data centers to support AI applications. In 2022, the company was a significant Ether miner, dedicating over 70% of its operations to the activity. After an update to the Ethereum blockchain, the company shifted its focus from mining to high-performance computing and other projects. The company secured a €575 million debt financing agreement from Tether Group in November. Tether then became a cornerstone investor after purchasing a Tether-related vehicle for €400 million in January. The company is using these funds to buy advanced AI chips from Nvidia Corp., with plans to deploy approximately 20,000 H100 chips by the end of the summer.
