Nvidia-Backed Fermus Seeks Valuation of $30 Billion Despite $51 Million in Revenue, Pitch Meets Pushback

A bid to take AI-focused infrastructure company Firmus Grid Ltd. to the market has run into resistance over valuation, according to a report citing the company’s financing and investor discussions. The case centers on a proposed $30 billion valuation for Fermus, a figure that would put its value far above what its current revenue suggests.

In the report, Fermus is described as having Nvidia backing and as having computing-related deals with major AI and platform players, including Meta Platforms Inc. and OpenAI. Nvidia’s involvement matters in this category because it indicates alignment with the specialized chips and data-center architectures that power much of today’s generative AI buildout.

The valuation question, however, appears to be the central sticking point. The report says investors balked at an implied $30 billion valuation for a business with only about $51 million in revenue. Without more detail on growth rates, customer contracts, or forward pipeline economics, such a gap can raise concerns that the market is pricing not just current sales, but also highly optimistic future capacity commitments and margins.

The report frames the dispute as part of an effort related to bringing Fermus to public markets, implying that the valuation would be tested as part of an IPO or similar transaction structure. In these situations, buyers and existing institutional backers often weigh not only revenue to date, but also the durability of demand, the company’s ability to convert new AI data-center requirements into contracted revenue, and the expected timeline for turning projects into cash flow.

For Nvidia, partnerships or financing in AI infrastructure ventures can support a broader ecosystem, especially when suppliers of compute and data-center capacity are expanding to meet demand from AI labs and major cloud customers. But Nvidia is not the only variable that determines whether an infrastructure company can command a premium valuation. The market also scrutinizes how much of the revenue is recurring, whether projects are tied to long-term power and leasing terms, and how quickly capital-intensive builds can be monetized.

The report does not spell out many specifics that investors typically request during public-market fundraising, including the exact terms of Nvidia’s backing, the contract structures with Meta and OpenAI, or whether the $51 million revenue is concentrated in a small number of customers or project milestones. It also does not provide information on losses, cash burn, or the amount of capital Fermus expects to raise and how it would allocate funds.

What to watch next is whether Fermus can narrow the valuation gap by offering clearer forward visibility, such as additional signed capacity commitments, updated guidance on revenue conversion, or evidence that current sales are scaling rapidly toward larger contracted volumes. If negotiations continue, investors may also push for a revised valuation, more conservative underwriting, or governance terms that reduce risk if projects do not ramp on schedule.