Story
Nvidia Reportedly Investing $500 Million in Australian Cloud Startup Firmus
Summary
According to a report from the Australian Financial Review, U.S. chipmaker Nvidia has committed approximately $500 million to Firmus Technologies, an Australian cloud infrastructure startup. The investment is part of a larger funding round ahead of Firmus's planned public listing.
U.S. chipmaker Nvidia has reportedly committed A$720 million (approximately $500 million) to Australian cloud infrastructure startup Firmus Technologies. The investment, reported by the Australian Financial Review, is part of a $2 billion equity raising by Firmus and would make Nvidia the largest investor in the round.
This funding round values Firmus at about $15.5 billion on a post-money basis, nearly doubling its previous valuation. According to the report, Nvidia's investment is structured as preference shares that are expected to convert into ordinary shares at the time of the company's initial public offering (IPO).
Firmus Technologies plans to use the proceeds to purchase Nvidia chips for its data center project in Launceston, Tasmania. The capital will also be used to support the company's broader expansion pipeline across Australia.
AdIn preparation for the investment, Firmus has reportedly called an extraordinary general meeting for July 31 to seek shareholder approval. The company is also proposing a 50-for-1 share split, a move intended to lower the per-share price and make the stock more accessible to retail investors ahead of a targeted listing on the Australian Securities Exchange (ASX) within the next 12 months.