Business
Australia’s Sharon AI Announces Oversubscribed US$1.6B Financing for AI Factory Expansion
Sharon AI announced their oversubscribed US$1.6 billion financing, which was backed by Situational Awareness, Oaktree and others. The financing will back AI Factory development, its NVIDIA partnership and operation of more than 55,000 GPUs through mid-2027.
Australian Neocloud company Sharon AI has announced an oversubscribed US$1.6 billion strategic financing to help expand its AI Factory network throughout Australia and the Asia-Pacific region.
The financing is led by Situational Awareness and funds managed by Oaktree Capital Management, as well as new and returning institutional and strategic investors. The deal consists of a $900 million private placement and $700 million in Convertible Senior Notes due 2032.
NVIDIA Partnership and AI Factory Expansion
Sharon AI said the financing proceeds will fund its announced six-year strategic computer collaboration with NVIDIA. It intends to establish one of Australia’s largest AI Factories powered by up to 40,000 NVIDIA Grace Blackwell GB300 GPUs.
The funding will further also back Sharon AI’s higher expectations for growth across Australia and the whole Asia-Pacific region. The firm stated that its total AI Factory capacity has been raised to 132MW, with 102MW now contracted to end customers.
According to Sharon AI, over 55k NVIDIA GPUs will be deployed by mid-2027. Chief Executive Officer James Manning said demand for GPU computing is dramatically outstripping supply, driven by artificial intelligence-native businesses, enterprises, governments and research organisations and hyperscale customers.
Overview of the US$900 Million Private Placement
The larger portion of the financing is from a private placement, valued at around U$900 million. According to the terms of the transaction, Sharon AI will pay 6,719,896 shares of common stock at a price of US$68.73 per share.
Additionally, the company will provide pre-funded warrants for 6,374,823 shares of common stock. Each pre-funded warrant is priced at US$68.7299, calculated based on the share price minus a US$0.0001 exercise price attached to each of the warrants.
The private placement is anticipated to be consummated on or about 22 June 2026, subject to customary closing conditions, according to Sharon AI.
$700 Million 2032 Conversion Notes
In conjunction with the private placement, Sharon AI has received US$700 million issuance of 4.75% Convertible Senior Notes due in 2032.
The notes will constitute senior obligations of the company, and will be guaranteed by certain subsidiaries of Sharon AI. There is a 4.75% per annum cash coupon payable on a semi-annual basis.
The notes will be convertible based on certain conditions into shares of Sharon AI common stock, which will initially have an conversion price of approximately US$99.66 per share. This conversion price represents a 45% premium to the placement share price, it said. The notes will mature on June 15, 2032 unless earlier converted, redeemed or repurchased.
Advisers and Next Steps
The company said that further details about the deal will be included in a Form 8-K filing with US authorities and exchange commission.
Goldman Sachs and Co. LLC are the lead placement agent for this transaction and Lucid capital markets is acting as the placement agent. Financial and legal advisors are Macquarie Capital and Shepppard Mullin Richter and Hampton.
The issuance of those securities in connection with the transaction was not registered under the Securities Act of 1933, according to the companyq. Sharon AI has agreed to file a resale registration statement with the SEC for the shares issued upon closing of the financing.
Sharon AI Scaling Up Its AI Infrastructure Capacity
Sharon AI is an Australian Artificial Intelligence Cloud and High Performance Computing company, specializing in cloud GPU and CPU infrastructure for artificial intelligence.
This continues to be driven by its AI cloud platform and computing infrastructure to hasten the development of AI Factories and sovereign AI solutions, the company said. The newest funding will fund further growth of its data centre and computers capacity where Sharon AI stated infrastructure for its increasing new customers looking for AI solutions in the region.
FAQs
Who is backing the financing?
Institutional and Strategic Investors include Oak tree Capital Management, The following is the deal they are training you on.
What shall the financing be used for?
Sharon AI Plans to Expand This fundraising will be used for Sharon AI’s NVIDIA partnership, as well as the expansion of its AI Factory.
How many GPUs will Sharon AI deploy?
Sharon AI plans to roll out over 55,000 Nvidia GPUs through 2027.
When will the transaction be completed?
Subject to customary conditions, closing of the financing is anticipated on or about June 22, 2026.
Source: Sharon AI
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