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Stock Markets June 17, 2026 09:28 AM

Sharon AI Secures $1.6 Billion to Scale AI Factories; Shares Rise After Placement

Private placement combines equity and convertible notes to fund large-scale GPU deployments across Australia and the Asia-Pacific region

By Derek Hwang
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SHAZ

Shares of Sharon AI Holdings Inc. (NASDAQ:SHAZ) climbed 8% after the company disclosed a $1.6 billion private placement intended to bankroll the expansion of AI factory capacity in Australia and the wider Asia-Pacific region. The package mixes roughly $900 million of common stock and pre-funded warrants with $700 million of 4.75% convertible senior notes due 2032. Anchor investors include Situational Awareness L.P. and funds managed by Oaktree Capital Management, and Goldman Sachs & Co. LLC is acting as lead placement agent. Proceeds will support a six-year compute collaboration with NVIDIA and planned deployments of tens of thousands of GPUs by mid-2027.

Sharon AI Secures $1.6 Billion to Scale AI Factories; Shares Rise After Placement
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Key Points

  • Sharon AI announced a $1.6 billion private placement made up of about $900 million in common stock and pre-funded warrants, and $700 million in 4.75% convertible senior notes due 2032.
  • Proceeds will support a six-year compute collaboration with NVIDIA and the build-out of one of Australia’s largest AI factories, including plans for up to 40,000 Grace Blackwell GB300 GPUs.
  • Company capacity stands at 132 MW, with 102 MW contracted and more than 55,000 NVIDIA GPUs expected to be deployed by mid-2027; anchor investors include Situational Awareness L.P. and funds managed by Oaktree Capital Management.

Sharon AI Holdings Inc. (NASDAQ:SHAZ) saw its shares gain 8% after unveiling a $1.6 billion private placement intended to finance an expansion of its AI factories across Australia and the Asia-Pacific region.

The financing round is composed of approximately $900 million of common stock and pre-funded warrants, plus $700 million of 4.75% convertible senior notes maturing in 2032. The transaction was anchored by Situational Awareness L.P. and funds managed by Oaktree Capital Management, alongside other institutional and strategic investors.

Company filings show the equity portion will include the issuance of 6,719,896 shares of common stock at $68.73 per share. In addition, pre-funded warrants to acquire 6,374,823 shares will be issued, each warrant priced at $68.7299. The convertible notes carry a 4.75% annual interest rate and convert into common stock at an initial conversion price of about $99.66, which the company says represents a 45% premium to the common stock placement price.

Sharon AI indicated the capital will underwrite its six-year strategic compute collaboration with NVIDIA, with plans to deploy one of Australia’s largest AI factories. The company expects this facility could include up to 40,000 Grace Blackwell GB300 GPUs as part of the expansion effort.

Operational metrics released with the financing announcement show Sharon AI’s aggregate AI factory capacity has expanded to 132 MW, of which 102 MW is already contracted to end customers. Management projects more than 55,000 NVIDIA GPUs will be deployed by mid-2027.

"We continue to see demand for GPU compute significantly outpacing supply, with strong demand from AI-natives, enterprise, government, research, and hyperscale customers," said James Manning, co-founder and CEO of Sharon AI.

The private placement is expected to close on or about June 22, 2026, and remains subject to customary closing conditions. Goldman Sachs & Co. LLC is serving as lead placement agent for the transaction.

The announcement ties together a sizeable capital raise with specific deployment targets and strategic partnerships aimed at scaling Sharon AI’s compute footprint in the region. The mix of equity, pre-funded warrants, and convertible debt reflects the company’s approach to balancing immediate funding needs with longer-term financing structures tied to its growth plans.

Risks

  • The private placement is subject to customary closing conditions, so the financing is not guaranteed to close on the expected schedule - this affects capital markets and investor allocations.
  • Planned GPU deployments and the projection of more than 55,000 NVIDIA GPUs by mid-2027 are forward-looking operational targets that may face execution or timing uncertainty, impacting data center and AI compute capacity growth.
  • The company’s expansion is tied to a six-year strategic collaboration with NVIDIA; progress and outcomes depend on that partnership and the availability of specified GPU hardware.

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