At a glance
Sharon AI's secured AI factory capacity rose by 80MW to 212MW, its first change since 12 June 2026.
Contracted value reached US$8.8 billion on 6 August, close to four times the figure Sharon AI gave in May.
Sharon AI's first-quarter results in May put capacity at 100MW, so the figure has more than doubled in a quarter.
The US$430.4 million net loss was almost all non-cash, driven by a US$400.4 million charge on convertible notes after the share price rose.
Revenue was US$1.9 million for the quarter, and Sharon AI expects it to ramp materially from the third quarter.
Secured capacity rises 80MW to 212MW
Sharon AI has secured 80MW more AI factory capacity, taking its total to 212MW, on second-quarter results released before the United States market open on 6 August 2026. Sharon AI is a neocloud, a company that sells GPU computing from space inside other operators' data centres. It publishes two capacity numbers in each announcement: the total it has secured, and the share of that total contracted to end customers.
The total had sat at 132MW in every disclosure since 12 June 2026, including the US$373 million cloud contract announced on 4 August 2026, which said capacity "remains at 132 megawatts". The results describe the extra 80MW as being for deployment in 2026 and 2027, "underpinned by a growing pipeline of additional capacity". The 80MW sits under subsequent highlights, alongside the July and August contracts, so it falls in the third quarter rather than the one being reported. The financial statements run to 30 June.
Sharon AI's first-quarter results in May put the same total at 100MW, raised from 70MW, for deployment in 2026 and early 2027. The second-quarter figure is 212MW. Capacity and contracted value have both risen since the first-quarter results in May, and Sharon AI expects revenue to follow from the third quarter.
The share of capacity contracted to end customers is reported in Sharon AI's contract announcements rather than its quarterly results. That figure was 120MW on 4 August 2026, against the 132MW total standing at the time.
US$8.8bn contracted, from more than US$2.2bn in May
Total contract value reached US$8.8 billion at 6 August 2026. James Manning, co-founder and chief executive, told the first-quarter earnings call on 15 May that the book stood at more than US$2.2 billion. The results highlight four agreements, the largest a US$4.9 billion, six-year compute collaboration with NVIDIA covering up to 40,000 GB300 GPUs.
Agreement | Value | Announced |
|---|---|---|
NVIDIA compute collaboration, six years | US$4.9bn | 12 June 2026 |
Cloud contract, global technology company, five years | US$950m | 14 May 2026 |
Cloud contract, global AI lab, five years, New Zealand | 16 July 2026 | |
Cloud contract, global AI platform, five years | US$373m | 4 August 2026 |
Source: Sharon AI announcements of 14 May, 12 June, 16 July and 4 August 2026, and its second-quarter results.
The NVIDIA agreement runs on revenue sharing and credit support: Sharon AI sells NVIDIA-powered cloud services, and NVIDIA takes hardware revenue plus a share of the cloud revenue earned on the capacity it backs. The three cloud contracts in the table are take-or-pay, meaning the customer pays for the capacity whether or not it uses it. Sharon AI describes the buyers as a global technology company with a major Asia-Pacific presence, a global AI lab and a global AI platform.
The four together account for about US$7.5 billion of the US$8.8 billion book. The balance is almost entirely a five-year, take-or-pay master services agreement with India's ESDS Software Solutions worth US$1.25 billion, disclosed in the first-quarter results. Revenue from the May contract is expected to commence in the third and fourth quarters of 2026, from the New Zealand contract in the first and second quarters of 2027, and from the August contract in the first quarter of 2027.
Sharon AI books a US$400.4m paper loss on convertible notes
The net loss for the quarter was US$430.4 million, of which US$423.8 million was non-cash. Sharon AI booked a US$400.4 million fair value loss on its convertible notes, which it attributes to its own share price rising. A higher share price makes the right to convert the debt into shares worth more, so the liability carried against it grows and the increase runs through the income statement. The notes settle in shares if converted. The convertible notes liability stood at US$1.01 billion at 30 June, against US$129.0 million at the start of the year, after two issues during the half: US$350 million in May and about US$700 million inside the June financing.
Across the six months to 30 June, the loss from operations was US$27.6 million on revenue of US$2.2 million. Adjusted EBITDA, the company's own measure, was positive at US$0.6 million for the quarter, against a US$1.7 million loss a year earlier. The half also carried a US$65.9 million gain on the sale of Sharon AI's 50 per cent interest in Texas Critical Data Centers to New Era Energy & Digital. The results also record US$74 million of proceeds from that sale received ahead of schedule.
Customers put US$143.9m on deposit with Sharon AI
Sharon AI held US$143.9 million of customer deposits at 30 June, against none at 31 December 2025. Sharon AI also paid US$310.7 million in advance for property and equipment during the half, and carried a further US$302.6 million of equipment, software and lease prepayments. Cash stood at US$1.86 billion, up from US$71.1 million at the start of the year. The US$1.6 billion financing behind that, anchored by the investment firm Situational Awareness and funds managed by Oaktree, combined about US$900 million of shares and pre-funded warrants with about US$700 million of convertible notes.
IREN disclosed customer prepayments against US$2.8 billion of AI cloud contracts in July, on which IDC's Dave McCarthy said the customers were "essentially acting as project co-investors to lock down guaranteed capacity". Sharon AI's deposits and its equipment prepayments both appeared during the six months to 30 June, from zero at the prior year end.
A NEXTDC agreement covers up to 50MW of Sharon AI capacity
Sharon AI's Australian position rests on a November 2025 agreement for up to 50MW of additional capacity across NEXTDC's Australian and Asia-Pacific network. NEXTDC's M3 in Melbourne already houses the Sharon AI supercluster, and the results list a 600PB VAST AI Operating System, deployed as the foundational data layer, among the quarter's milestones.
Grid connection and firm supply sit with the data centre operator under that arrangement, and Sharon AI has looked separately at owning a piece of a power project. The Australian reported in July that it had held talks over a stake of about 4.9 per cent in Frontier Energy, owner of a Western Australian solar and battery project targeted for first generation in the second half of 2028. Sharon AI has said it has not bought a 4.9 per cent stake, and that it continually assesses partnerships with renewable energy projects where co-location could improve efficiency.
Sharon AI has not named a site, a host or a country for the extra 80MW.
What to watch
The earnings call. Management takes questions at 4:30pm New York time on 6 August, 6:30am in Sydney on 7 August. It is the first call since the secured total moved to 212MW.
The next contract announcement. Sharon AI restates capacity contracted to end customers when it signs a contract, not in its quarterly results. The last figure was 120MW against a 132MW total. The next one will be the first read of how much of the 212MW is sold.
The revenue run-rate. Manning told the May call that Sharon AI expected an annualised revenue rate of at least US$470 million by the end of 2026. Quarterly revenue is US$1.9 million, and the results put the ramp across the third quarter of 2026 through 2027.
The ASX listing. Sharon AI approved seeking a dual listing through CHESS Depositary Interests in April 2026, alongside a private offering to institutional investors. The reported timing has moved more than once and a prospectus has yet to be published. Listing documents would be the first place the sites behind the 212MW appear.
The new finance chief. Anuj Goel becomes chief financial officer on 24 August 2026 after 20 years at Macquarie, latterly head of technology for Asia-Pacific at Macquarie Capital. He joins a bench rebuilt this year, with Melissa Anastasiou arriving as chief legal officer from Spark New Zealand in July and Andrew Penn AO named non-executive chairman in May.