Sharon AI, NVIDIA in 6-year compute deal up to $4.88B for 40K GPUs
SharonAI Holdings Inc. announced a six-year strategic compute collaboration with NVIDIA Corporation, valued at up to $4.88 billion. This partnership will enable the deployment of 72 megawatts of new data center capacity in Australia, featuring up to 40,000 Grace Blackwell GB300 GPUs, expanding Sharon AI's total AI factory capacity to 132MW. The agreement includes a revenue-sharing and credit-support model, providing Sharon AI with a capital-efficient path to scale. However, the company highlighted significant risks, including challenges in procurement, delivery, and operational requirements, the need to secure substantial financing, and its limited experience in managing such large-scale contracts, which could lead to reduced revenue, increased costs, and potential termination.
Key Highlights
- Sharon AI announced a six-year strategic compute collaboration with NVIDIA Corporation.
- The Master Cloud Services Agreement has a contract value of up to $4.88 billion.
- The collaboration aims to deploy 72 megawatts (MW) of new data center capacity in Australia.
- Up to 40,000 Grace Blackwell GB300 GPUs will be deployed.
- Sharon AI's total AI factory capacity expands to 132MW, with 102MW now contracted to end customers.
- The company expects to have over 55,000 total NVIDIA GPUs deployed by mid-2027.
- The agreement includes a revenue-sharing and credit-support model.
- Sharon AI needs to secure significant financing (debt/equity) for these deployments.
Price Impact
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