Firmus Technologies, a company building and managing AI factories equipped with Nvidia GPU chips, is preparing for its anticipated debut on the ASX. According to sources, the company is reducing its valuation to attract sceptical investors, and there is a possibility that it will withdraw the initial public offering.
Firmus on Thursday abruptly withdrew from a planned appearance at a parliamentary inquiry into artificial intelligence. The decision comes as the company is in the final stages of preparation for a listing on 23 October, which would be the largest IPO since Telstra in 1997. Investors were to pay $11 per share.
Firmus's valuation stood at nearly $44 billion, yet the company is in a start-up phase. Less than a year ago, it was worth less than $2 billion. The value then rose from $1.85 billion to $15 billion, approximately eight weeks ago, before reaching nearly $44 billion a few days ago.
Firmus has raised funds from major investors, including chipmaker Nvidia, as well as Blackstone, Jane Street, and Coatue. Despite the impressive roster of investors, the company has only two operational sites, while simultaneously having seven contracted and planned facilities. Firmus has agreements with Meta, OpenAI, and Nvidia, focusing on the Asian market.
However, around 97 per cent of the contracted revenue is located at sites not yet built, according to Arma Rosenberg of Minotaur Capital. This casts a shadow over the sustainability of the business model and explains why some investors remain sceptical. Firmus has been contacted for comment.
