Overview
Shares of Sharon AI Holdings Inc. (NASDAQ:SHAZ) jumped 30% on Wednesday following disclosure of a five-year AI cloud infrastructure agreement valued at $1.25 billion with ESDS Software Solutions Ltd. Under the terms, Sharon AI will install an 8,000-unit B300 cluster inside one of its current data center partners in Australia, with revenue recognition targeted to begin in the third quarter of 2026. The customer retains an option to extend the contract for an additional two years.
Deal specifics and company comment
The Australian Neocloud provider described the arrangement as a significant expansion of its AI Cloud services business. James Manning, Co-Founder and CEO of Sharon AI, said, "This contract is one of many we have been working on for a period of time, and we are delighted to be delivering this GPU capacity in an Australian data center." Manning added that the company continues to see robust demand across the enterprise, hyperscale, research, government and AI native sectors. With the additional data center capacity confirmed, Sharon AI said it looks forward to providing updates on its customer pipeline.
Market positioning and regional reach
The transaction represents a material commercial win for Sharon AI as global demand for AI infrastructure grows. The planned deployment of the B300 cluster in Australia positions the company to serve customers in the Asia-Pacific region seeking GPU capacity for AI workloads, using an existing data center partner to house the equipment.
Outlook and next steps
Revenue from the agreement is expected to commence in the third quarter of 2026, and the two-year extension option gives the customer flexibility to lengthen the relationship. Sharon AI has indicated it will provide updates on its pipeline as additional client engagements progress, but no further timing or financial details beyond the contract value and initial revenue timing were provided.
Conclusion
Investors reacted positively to the announcement, driving a one-day 30% increase in Sharon AI shares. The deal amplifies the company's footprint in AI cloud services and establishes a foothold for delivering GPU capacity to customers across the Asia-Pacific region.