Sharon AI Holdings Inc. (NASDAQ:SHAZ) shares surged 25% on Friday after the company announced a six-year strategic compute collaboration with NVIDIA (NASDAQ:NVDA) aimed at significantly expanding AI infrastructure capacity in Australia.
The agreement marks a major step in Sharon AI’s efforts to build large-scale sovereign AI computing capabilities and broaden access to advanced AI processing power for a wide range of customers.
Partnership to Deliver 72MW of New Data Centre Capacity
Under the collaboration, Sharon AI and NVIDIA plan to deploy 72 megawatts of additional data centre capacity across Australia.
The infrastructure is expected to support up to 40,000 NVIDIA Grace Blackwell GB300 GPUs, serving enterprise clients, AI startups and academic research institutions.
The facilities will be built using NVIDIA’s DSX AI factory architecture, designed to support large-scale artificial intelligence workloads and high-performance computing applications.
Innovative Revenue-Sharing Structure
The partnership incorporates a revenue-sharing and credit-support framework intended to help Sharon AI scale its infrastructure deployment while aligning incentives between the two companies.
Under the arrangement, Sharon AI will market and sell cloud computing services powered by NVIDIA technology.
In addition to receiving revenue from hardware sales, NVIDIA will also participate in cloud-service revenues generated from the supported infrastructure.
CEO Highlights Strategic Importance of Agreement
Commenting on the announcement, Co-Founder and Chief Executive Officer James Manning described the deal as a significant milestone for the company.
“This strategic compute collaboration with NVIDIA marks a pivotal moment in Sharon AI’s mission to deliver sovereign, large-scale AI compute infrastructure. Securing access to 72MW of data center capacity enables us to deploy up to an additional 40,000 Grace Blackwell GB300 GPUs, providing access to accelerated compute to enterprise, startup and AI native customers who otherwise may not have been able to access it,” he said.
AI Infrastructure Footprint Expands Significantly
The new agreement builds on Sharon AI’s existing relationship with NVIDIA, where it already operates as a certified NVIDIA Cloud Partner.
Following the latest expansion, Sharon AI’s total AI factory capacity has increased to 132MW.
Of that total, 102MW has already been contracted to end customers, highlighting strong demand for AI computing resources.
GPU Deployment Target Exceeds 55,000 Units
As part of its long-term growth plans, Sharon AI expects to have more than 55,000 NVIDIA GPUs deployed by the middle of 2027.
The company believes the expanded infrastructure platform will strengthen its position in the rapidly growing AI cloud computing market while providing customers with access to high-performance computing resources needed to train and deploy next-generation AI models.
Investors reacted positively to the announcement, sending the stock sharply higher as the market welcomed the scale of the partnership and the growth opportunities created by the collaboration with NVIDIA.