Australian neocloud Sharon AI has secured US$1.6 billion (A$2.3 billion) in private placement funding.
The funds will be used to support the company’s previously announced six-year strategic compute collaboration with NVIDIA to deploy one of Australia’s largest 'AI Factories', including up to 40,000 Grace Blackwell GB300 GPUs, as well as broader expansion plans.
The company also said its total AI factory capacity has expanded to 132MW, of which 102MW is contracted to end customers, with more than 55,000 NVIDIA GPUs expected to be deployed by 2027.
The financing comprises of a private placement of approximately US$900 million, split between 6,719,896 shares of the company’s common stock and pre-funded warrants to purchase 6,374,823 shares of the company’s common stock; as well as a private placement of US$700 million aggregate principal amount of 4.75% Convertible Senior Notes due 2032.
“We are delighted to welcome new and existing institutional and strategic investors in connection with this financing, which will enable us to accelerate the deployment of AI Factories across Australia and Asia-Pacific,” said James Manning, co-founder and CEO of Sharon AI.
“We continue to see demand for GPU compute significantly outpacing supply, with strong demand from AI-natives, enterprise, government, research, and hyperscale customers.”
Earlier this year, Sharon AI partnered with Cisco to build a Cisco Secure AI Factory that operates entirely in Australia, while in 2025, Lenovo inked a deal with Sharon AI to deliver a 1,000 GPU cluster, powered by the NVIDIA B200 GPU.
Earlier this month, former Telstra chief executive Andrew Penn AO was named the non-executive chair of Sharon AI's board of directors.
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