Story
Sharon AI Shares Rise After Securing $373 Million Cloud Computing Contract
Shares of Sharon AI Holdings Inc. (NASDAQ:SHAZ) climbed 5% in Tuesday's premarket trading after the company announced it had secured a five-year cloud computing services agreement valued at $373 million. The contract is with an unnamed global artificial intelligence platform.
Contract Details
Under the terms of the agreement, the Australian Neocloud provider will deploy its cloud solutions for the client's AI infrastructure located in Australia. Sharon AI stated that it expects to begin recognizing revenue from the contract during the first quarter of 2027.
The initial deployment is set to utilize 2,048 NVIDIA Blackwell Ultra B300 GPUs. The company noted that additional deployments are possible over the five-year term, contingent on the customer's requirements.
Infrastructure and Capacity Impact
Following the deal, Sharon AI's total AI Factory capacity remains at 132 megawatts (MW), but its contracted capacity with end customers has now reached 120 MW. This indicates a significant portion of the company's available infrastructure is now secured under long-term agreements.
AdSharon AI also confirmed it will upgrade its platform to a total of 64,000 NVIDIA GPUs by mid-2027, an increase from the current 62,000. This expansion supports the growing demand for high-performance computing power.
Strategic Context
"This agreement represents an important milestone in the continued expansion of Sharon AI’s customer base and contracted AI infrastructure capacity," said James Manning, Co-founder and CEO of Sharon AI, in a statement. He highlighted the increasing demand for "sovereign, high-performance AI compute" from enterprises and governments.
The company added that the agreement supports Australia's strategic goal of becoming a leading destination for AI infrastructure investment in the Asia-Pacific region. By deploying advanced computing capacity within the country, the deal contributes to the growth of Australia's digital infrastructure and its position as a regional AI hub.
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