July 1 (Reuters) - Germany-based Northern Data AG ( NDTAF )

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 ( NDTAF ) 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 ( NDTAF ) did not immediately respond to a Reuters

request for comment.