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Sharon AI reported second-quarter 2026 results, with total contract value reaching about USD $8.8 billion.
The Australian AI infrastructure group posted quarterly revenue of USD $1.9 million, up 412% from a year earlier. Net loss widened to USD $430.4 million from USD $2.6 million, while adjusted EBITDA turned positive at USD $0.6 million from a loss of USD $1.7 million.
The quarterly loss was largely driven by non-cash items totalling USD $423.8 million, including a USD $400.4 million fair value loss on convertible notes tied to a rise in the share price.
Cash and cash equivalents stood at USD $1.9 billion at quarter-end. Near-term funding was strengthened by a USD $1.6 billion oversubscribed private placement, a USD $350 million convertible notes offering, and the early receipt of USD $74 million from the sale of Texas Critical Data Centres.
Contracts signed
Much of the update focused on customer agreements and computing supply. Sharon AI entered a six-year compute collaboration with Nvidia worth USD $4.9 billion for up to 40,000 GB300 GPUs.
It also disclosed a five-year take-or-pay contract worth USD $950 million with a global technology company with a major Asia-Pacific presence. Under take-or-pay structures, customers pay for contracted volume whether or not they use it in full.
Those agreements helped lift total contract value to about USD $8.8 billion. Sharon AI defines that figure as aggregate estimated committed customer spend under legally binding contracts over their full term, rather than revenue recognised under accounting standards.
Capacity build-out
Alongside the results, secured AI Factory capacity rose by 80MW to 212MW, intended for deployment across 2026 and 2027.
More than 64,000 Nvidia GPUs are expected to be deployed by mid-2027. Another newly announced contract is a five-year take-or-pay deal worth USD $373 million with a global AI platform for the deployment of 2,048 Nvidia B300 GPUs.
A separate five-year contract worth USD $1.32 billion with a global AI lab will support Sharon AI's expansion into New Zealand. The company has positioned Australia and New Zealand as its core markets, with a broader focus on the Asia-Pacific region.
Data layer
The group also expanded its partnership with VAST Data. Under the arrangement, Sharon AI has deployed a 600PB VAST AI Operating System as the foundational data layer for infrastructure designed to support about 100,000 GPUs.
The combination of long-term contracts, reserved capacity, and data infrastructure reflects Sharon AI's effort to secure both customers and supply in a market where access to power and advanced chips remains constrained. Companies building AI services have increasingly locked in multi-year commitments to avoid shortages in compute and data centre space.
Management also outlined changes to the senior leadership team and board. Andrew Penn was appointed Non-Executive Chairman, Anuj Goel joined as Chief Financial Officer, and Melissa Anastasiou was named Chief Legal Officer.
James Manning, Co-Founder and Chief Executive Officer of Sharon AI, linked the quarter to the company's broader commercial expansion.
"In the second quarter, we established the commercial, infrastructure, and capital foundations for Sharon AI's next phase of growth at scale," Manning said.
He said customer activity had continued to widen as AI adoption increased and access to power and compute became more important for buyers.
"Customer engagement continues to broaden and deepen, reflecting strong demand for secure, high-performance AI infrastructure and a growing recognition that access to power, compute and data sovereignty will be critical constraints as AI adoption accelerates.
"Our focus is on converting that demand and our contracted commitments into durable revenue growth and long-term shareholder value through disciplined execution. We are on track to bring contracted capacity online in accordance with our deployment schedule, while maintaining a thoughtful approach to capital allocation and pace of expansion. Revenue is expected to ramp materially from the third quarter of 2026 through 2027. With an experienced leadership team backed by deep technical and operating expertise across the business, a best-in-class partner ecosystem and a strengthened balance sheet, we believe Sharon AI is well positioned to become a leading sovereign AI infrastructure platform across Australia, New Zealand, and the broader Asia-Pacific region," Manning said.