Sharon AI locks in $4.88 billion Nvidia deal to expand sovereign AI infrastructure in Australia

Sharon AI Secures Major Nvidia Deal to Scale AI Infrastructure

Nasdaq-listed neocloud company Sharon AI has finalized a six-year compute collaboration with Nvidia valued at up to $4.88 billion, marking a significant expansion of its AI infrastructure capabilities in Australia 3

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. The Nvidia deal will enable Sharon AI to deploy 72 megawatts of new data center capacity and scale up to 40,000 Grace Blackwell GB300 GPUs, more than doubling the company's total AI factory capacity from 60 megawatts to 132 megawatts 3

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. This expansion positions Sharon AI to compete more aggressively in the Australian data centre space against rivals like Oliver Curtis' Firmus Technologies 1

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Revenue-Sharing Model Drives Strategic Partnership

The collaboration operates on a revenue-sharing model where Sharon AI will sell NVIDIA-powered cloud services while Nvidia earns standard product revenue plus a share of cloud revenue on the supported capacity 4

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. Assuming 40,000 GPUs run at 100 percent utilization for six years, the contract value implies roughly $2.32 per GPU-hour, which Compass Point characterized as conservative compared to current Blackwell spot pricing 4

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. The agreement increases Sharon AI's contracted capacity to 102 megawatts, with the company expecting to have more than 55,000 total Nvidia GPUs deployed by mid-2027 5

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Sovereign AI Infrastructure Meets Growing Demand

Sharon AI's strategic focus on sovereign AI infrastructure addresses a critical need for organizations that refuse to compromise between data sovereignty and high-performance computing capabilities 2

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. The company recently expanded its partnership with VAST Data to deploy 600 petabytes of the VAST AI Operating System across its AI cloud infrastructure, providing storage capacity equivalent to supporting the data needs of roughly 100,000 GPUs 2

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. This platform will serve as the data foundation for Sharon AI's sovereign AI infrastructure, supporting government, enterprise, research, and AI-focused customers across Australia and the Asia-Pacific region while keeping sensitive data onshore 2

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Market Response and Analyst Outlook

Shares of NASDAQ:SHAZ surged following the announcements, with the stock trading up 11.12 percent at $78.02 after the VAST Data partnership disclosure 2

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. Compass Point reiterated its Buy rating with a $90.00 price target, citing increased conviction in Sharon AI's ability to convert customer commitments into secured megawatts 4

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. The stock carries a consensus Buy rating with an average price target of $46.67, though recent analyst actions include targets as high as $50.00 from Compass Point and LUCID CAPITAL MARKETS 3

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. CEO James Manning emphasized that customers demand both data sovereignty and full-speed AI capabilities, positioning the company to serve large-scale AI compute infrastructure needs for AI startups, enterprises, and university researchers 2

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. The deployment will support large-scale AI training, inference, and agentic AI workloads as artificial intelligence workloads increase in complexity and data loading requirements 1

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.🟡 waving to the camera. This could be a relevant image as a human element to represent Sharon AI's leadership or key figures.)