Shares of Sharon AI Holdings Inc. (NASDAQ:SHAZ) climbed 25% on Friday after the company announced a multi-year compute collaboration with NVIDIA (NASDAQ:NVDA).
Under the terms of the six-year agreement, the two companies will install 72 megawatts of additional data center capacity in Australia and can scale that footprint to support up to 40,000 Grace Blackwell GB300 GPUs. The partners said they will deploy NVIDIA’s DSX AI factory design as part of the implementation.
The commercial arrangement includes a revenue-sharing and credit-support model intended to enable Sharon AI to commit to substantial NVIDIA infrastructure while aligning the economic interests of both firms. Under the arrangement, Sharon AI will market and sell cloud services powered by NVIDIA hardware. NVIDIA will receive traditional product revenue for equipment sales and also earn a share of cloud revenue generated on the supported capacity.
In describing the strategic importance of the deal, James Manning, Co-Founder and Chief Executive Officer at Sharon AI, said: "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."
The agreement builds on Sharon AI’s existing relationship with NVIDIA; the company is a certified NVIDIA Cloud Partner and already operates infrastructure within Australian data centers. Following the new commitment, Sharon AI’s total AI factory capacity has expanded to 132MW, with 102MW already contracted to end customers.
Sharon AI said it expects to have more than 55,000 total NVIDIA GPUs deployed by mid-2027.
For investors and market participants, the announcement combined immediate market reaction - the 25% jump in Sharon AI’s share price - with a clear statement of strategic intent around onshore AI compute capacity. The structure of the deal - particularly the revenue-share and credit-support elements - frames how Sharon AI intends to commercialize large-scale GPU deployments while sharing economics with NVIDIA.
Details provided in the announcement also indicate a mix of contracted and available capacity: of the 132MW total AI factory footprint, 102MW is contracted, leaving 30MW not currently contracted to end customers. The company’s stated GPU deployment target and the multi-year nature of the agreement set explicit milestones and timing expectations through mid-2027.
Market participants and stakeholders in cloud services, AI infrastructure, higher education research, and enterprise AI deployments will be watching how the capacity comes online and how the revenue-share model performs as services are marketed to startups, enterprises, and university researchers.