Nvidia-backed Australian AI data center company Firmus Grid just pulled a $5.5B IPO after trying to float at a $30B valuation — nearly 3X what it was worth three months ago. The deal collapsed in under 48 hours.
Why? According to the FT, the company had only 46 MW of operational capacity out of 900+ MW contracted. Investors were being asked to pay a massive premium for infrastructure that mostly doesn't exist yet.
This isn't a red flag for AI infrastructure demand — it's a reminder that not every company with ambitious data center plans deserves a sky-high valuation just because AI is hot.
There's a massive difference between contracted power, actual deployments, and real revenue generation. That's why I stay focused on execution, customer demand, financing, and proven capacity when evaluating plays like $NBIS, $CRWV, and $IREN.
The AI infrastructure boom can keep running while individual companies fail to justify their price tags. Both things can be true at the same time.
Why? According to the FT, the company had only 46 MW of operational capacity out of 900+ MW contracted. Investors were being asked to pay a massive premium for infrastructure that mostly doesn't exist yet.
This isn't a red flag for AI infrastructure demand — it's a reminder that not every company with ambitious data center plans deserves a sky-high valuation just because AI is hot.
There's a massive difference between contracted power, actual deployments, and real revenue generation. That's why I stay focused on execution, customer demand, financing, and proven capacity when evaluating plays like $NBIS, $CRWV, and $IREN.
The AI infrastructure boom can keep running while individual companies fail to justify their price tags. Both things can be true at the same time.