Germany’s Northern Data AG (NB2.DE) is contemplating a U.S. initial public offering for its AI cloud computing and data center units, potentially valuing the entity at up to $16 billion, Bloomberg News reported on Monday.
Northern Data, a leader in high-performance computing infrastructure, plans to list a combined entity of its cloud computing unit, Taiga, and its data centers, named Ardent, on the Nasdaq stock exchange. This IPO could occur as early as the first half of next year, according to sources familiar with the matter.
The U.S. IPO market has shown signs of recovery in 2024 after two challenging years, with increased investor interest driven by optimism about a potential economic soft landing. The rising demand for artificial intelligence, especially after the launch of OpenAI’s ChatGPT, has also led to significant investments in AI startups.
Major tech companies like Microsoft and Alphabet Inc. have been investing billions in the infrastructure needed to support AI applications, highlighting the growing significance of AI in the technology sector.
Additionally, Northern Data is considering selling a minority stake in the unit to investors before the IPO, the report said. However, the company has not yet made a final decision regarding its strategic options.
