Northern Data considers AI unit US IPO at up to $16 billion, Bloomberg News reports

(Reuters) -Germany-based Northern Data AG is exploring a U.S. initial public offering for its artificial intelligence (AI) cloud computing and data center units at a valuation of as much as $16 billion, Bloomberg News reported on Monday, citing people familiar with the matter.

The company, which provides infrastructure for high-performance computing, plans to enlist an entity comprising its cloud computing unit Taiga, and data centers, called Ardent, on the Nasdaq stock exchange as early as the first half of next year, according to the report.

After two sub-par years, the U.S. IPO market has shown signs of promise in 2024, with investors showing renewed interest in fresh listings buoyed by hopes of a soft landing for the economy.

AI-based startups have also attracted huge investments fueled by burgeoning demand in artificial intelligence following the launch of OpenAI's ChatGPT.

Technology giants including Microsoft and Alphabet Inc have been pouring billions of dollars into the infrastructure needed to support AI applications.

Northern Data could also sell a minority stake in the unit to investors prior to a listing, the report said.

The company could decide not to go ahead with the strategic options under consideration, the report added.

Northern Data did not immediately respond to a Reuters request for comment.

(Reporting by Mariam Sunny and Harshita Mary Varghese in Bengaluru; Editing by Alan Barona)