What's a $103bn order book worth when two customers hold 85% of it?
On paper, it’s a fortune.
Nscale provides AI infrastructure (data centres) and recently filed for an IPO.
But this weekend, one of those customers - Microsoft - pulled out of a project to build the UK's largest AI data centre.
Nscale blames the grid. The site may not get power until the 2030s.
Which is the point. Customer concentration doesn't always bite you because a customer relationship goes wrong.
Sometimes it’s because of something that neither of you controls.
That’s why buyers of a £10M business with one big account will be cautious on price.
So who's your Microsoft?
And how much would a buyer knock off your valuation because of them?
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By Gavin Gibbons
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