Sharon AI announced an oversubscribed $1.6 billion strategic financing to accelerate the expansion of its AI factories across Australia and the Asia-Pacific region. The financing was anchored by Situational Awareness and funds managed by Oaktree Capital Management, along with new and existing institutional and strategic investors.
The transaction includes a private placement of approximately $900 million, split between common stock and pre-funded warrants, along with a private placement of $700 million aggregate principal amount of 4.75% convertible senior notes due 2032.
Sharon AI plans to use the proceeds to support its previously announced six-year strategic compute collaboration with NVIDIA. Through that collaboration, the company intends to deploy one of Australia’s largest AI factories, including up to 40,000 Grace Blackwell GB300 GPUs.
The company said its total AI factory capacity has expanded to 132 megawatts, with 102 megawatts contracted to end customers. Sharon AI expects to deploy more than 55,000 NVIDIA GPUs by mid-2027.
The financing is expected to support broader expansion plans as Sharon AI scales its AI cloud and high-performance computing infrastructure. The company said demand for GPU compute continues to significantly outpace supply across AI-native companies, enterprises, government, research institutions, and hyperscale customers.
As part of the private placement, Sharon AI will issue 6,719,896 shares of common stock at $68.73 per share and pre-funded warrants to purchase 6,374,823 shares of common stock at $68.7299 per warrant. The convertible senior notes will bear interest at 4.75% annually, payable semi-annually in cash.
The notes will be convertible into shares of Sharon AI common stock at an initial conversion price of approximately $99.66, representing a 45% premium to the common stock private placement price. The notes will mature on June 15, 2032, unless earlier converted, redeemed, or repurchased.
The private placement is expected to close on or about June 22, 2026, subject to customary closing conditions.
Goldman Sachs is serving as lead placement agent, while Lucid Capital Markets is also serving as placement agent. Macquarie Capital is serving as financial advisor, and Sheppard Mullin Richter & Hampton is serving as legal adviser to Sharon AI.
Sharon AI is an Australian AI cloud and high-performance computing company focused on artificial intelligence and cloud GPU/CPU compute infrastructure. The company’s platform is designed to accelerate the buildout of AI factories and sovereign AI solutions.
KEY QUOTES:
“We are delighted to welcome new and existing institutional and strategic investors in connection with this financing, which will enable us to accelerate the deployment of AI Factories across Australia and Asia-Pacific. We continue to see demand for GPU compute significantly outpacing supply, with strong demand from AI-natives, enterprise, government, research, and hyperscale customers.”
James Manning, Co-Founder and CEO of Sharon AI