A Boutique AI Cloud Provider Is Bringing the Direct Listing Back

A small, Georgia-based purveyor of access to artificial intelligence chips began trading on the Nasdaq Thursday in an unexpected way: via a direct listing. On the one hand, QumulusAI’s move is a no-brainer. AI and data centers are all the rage. On the other hand, its decision to go public now, while still small, with a virtually unknown brand, and not to raise any capital, is confounding.

“I really think [the direct listing is] about speed—speed to keep raising capital, speed to find creative structures with other companies,” QumulusAI CEO Mike Maniscalco told PitchBook. “The expectation is that once we’re public, we’ll have other ways to keep raising capital and fueling growth, and the cost of that capital could also come down since we’re in the public markets.”

The company, founded in 2019, sells access to top-shelf GPUs for AI workloads. The majority of its chips are from Nvidia NVDA, though it also works with some other vendors. And while it currently supports both AI training and inference workloads, Maniscalco says the company expects to focus on the latter over time.

“We’re looking at ways to bring compute online in smaller pockets—going from a few megawatts to 8 megawatts to 15 megawatts is pretty solid growth for a company at our stage,” Maniscalo says. “We’re not chasing a gigawatt right now—we’re looking to grow in smaller pockets, what I’d call sub-50 megawatts. We can bring sub-50 megawatts online a lot faster than you can bring 500 megawatts online.”

Its direct listing—typically a route taken by well-capitalized companies with well-known brands—enabled stockholders to sell up to 39.5 million shares to the market. The stock began trading at $38.00 per share and closed the day at $21.43.

This is a far cry from the direct listings from venture-backed companies in the past eight or so years. Ranging from household consumer names like Spotify SPOT and Roblox RBLX to popular enterprise vendors like Slack and Palantir PLTR, they all came to market with multibillion-dollar valuations and well-capitalized coffers.

But QumulusAI is still a nascent company that’s only raised modest financing via debt and convertible notes, harkening back to a time when the US IPO market was mostly made up of companies of a humble size. As recently as the 1990s, companies experienced most of their growth after going public, bringing retail investors along for the ride rather than reserving it solely for VCs.

In the first quarter, QumulusAI had a net loss of $49.6 million (and $5.5 million from operations) on $3.4 million in revenue. In full-year 2025, it had a net loss of $4.46 million on $11.85 million in total revenue, an improvement on its net loss of $13.18 million on $8.10 million in revenue the year prior.

For scale, major neocloud player CoreWeave CRWV had $2.1 billion in the first quarter with full-year guidance of $12 billion-$13 billion, and it has surpassed 1.0 gigawatt of active power, with 3.5 gigawatt contracted. QumulusAI currently has about 7 megawatts deployed or contracted, with a target of 18 megawatts by the end of this year. How QumulusAI navigates the market under the scrutiny of public investors remains to be seen.

Also on Thursday, Brookfield-backed data center company Csquare began trading following an IPO that priced below its target range, suggesting that investors might be more fickle when it comes to AI than they’ve seemed so far.