Nvidia-backed AI cloud provider Nscale is preparing for a U.S. initial public offering. TikTok parent ByteDance emerged as the firm's largest customer in 2025, accounting for nearly 75% of total sales.
ByteDance utilized Nscale's cloud computing facility in Norway to access advanced Nvidia AI chips. This arrangement allowed the Chinese company to legally bypass U.S. export restrictions on high-performance hardware.
Nscale did not prominently disclose the ByteDance relationship in its primary investor pitch, though a separate document referenced the partnership indirectly. The arrangement exposes Nscale to potential regulatory and reputational risks as U.S. officials tighten controls on Chinese AI access.