SharonAI Holdings Inc. (SHAZ) Q2 2026 Earnings Call Transcript

Good day, everyone, and welcome to the Sharon AI Second Quarter 2026 Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. It is now my pleasure to hand the floor over to your host, Ross Barrows, Head of Capital Strategy and Investor Relations. Sir, the floor is yours.

Welcome to our earnings call to discuss Sharon AI's operating results for the quarter ended June 30, 2026. Joining me today is James Manning, Sharon AI's Chief Executive Officer, and Tim Broadfoot, Sharon AI's Chief Financial Officer. I'll now take a moment to read the safe harbor statement. During the course of this conference call, we may make certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our expectations, plans, prospects, strategies, future operating results, and financial performance. Although they may reflect our current expectations and are based on our current view of the industry and our business, they are not guarantees of future performance. These statements are subject to risks and uncertainties that could cause our actual results to be materially different from those expressed in these statements and speak only as of the date of this call. For more details on factors that could affect these expectations and cause these differences, please see our most recent Form 10-K and Form 10-Q and other SEC reports filed with the Securities and Exchange Commission and available on the SEC's website and in the Investor Relations section of our website. Sharon IR undertakes no obligation to publicly update or revise any forward-looking statement. whether as a result of new information or future events. In addition, during this call, we may discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures and related disclosures are available in today's earnings release and or on our Investor Relations website. I'll now turn the call over to James.

Hello, everyone, and welcome to Share and AI's second quarter 2026 earnings call. I'm James Manning, CEO and co-founder of Share and AI. I'll begin with the highlights from the quarter and an overview of our market position. I'll then cover some of our recent customer wins, and I'll talk about some of the additional capacity and our capital strategy moving forward. The central message from the quarter is that we have materially increased each of the three inputs required to scale this business. AI factory capacity, contracted, customer demand, and capital. Let me give you the headline numbers first, then I'll unpack them. As of today, we have 212 megawatts of total secured AI factory capacity across Australia and New Zealand, which is an upgrade of 80 megawatts from our last guidance of 132 megawatts. 120 megawatts are contracted through multi-year take-or-pay agreements, and I'll expand further on the updated capacity shortly. We expect to have more than 64,000 NVIDIA GPUs deployed by mid-2027. We've raised approximately US$2.2 billion of capital since December 25, and we've executed roughly US$8.8 billion of total contract value year-to-date. Three months ago, our portfolio was comprised of 100 megawatts of capacity and US$2.2 billion of TCB. So the contracted book has grown by roughly four times, and our secured capacity has more than doubled since. That demonstrates both the strength of demand and our ability to expand our supply to meet it. On customers, the standout is a six-year strategic compute collaboration with NVIDIA, worth $4.9 billion in total contract value. Alongside that, we've signed a five-year take-for-pay agreement with a global AI lab worth $1.32 billion and a five-year take-for-pay agreement with a global technology company worth $950 million. A few days ago, we secured a five-year take-or-pay agreement with a global AI platform worth $373 million in TCV. Notably, this is a B300 deployment with a record price of over $4 per GPU hour. On platform, we have a growing pipeline beyond our announced capacity, and we've expanded our partnership with VARs data to 600 petabytes of storage commitment, providing sufficient backing infrastructure to support continued growth of up to 100,000 GPUs. On capital and governance, we completed a $1.6 billion oversubscribed financing round in June, which followed a $350 million convertible note in April. We've made three significant leadership appointments. Anu's Gould, formerly of Macquarie Group, joins as our CFO. Melissa Anastasia joins as our Chief Legal Officer. and Andrew Penn has been appointed as a non-executive chairman of the board. Bringing in sea the leadership of Andrew, Anuj and Melissa's calibre strengthens our governments and ability to execute Sharon AI as Sharon AI enters its next phase of growth. I'm delighted to welcome the multiple new team members we have added across the organisation, including technical operations and sales to the team. Sharon AI is a leading Australian neocloud and trusted AI infrastructure partner. Charity is purpose-built to power the next generation of artificial intelligence and high-performance computing. We do so through our partner-led ecosystem, enabling our customers to confidently build, train, and deploy AI that drives productivity, innovation, and growth for their customers and themselves. What that practically means is we design and operate AI infrastructure, optimize the large-scale training, inference, and high-performance compute. We deliver GPU as a service, AI platform layers and high-performance storage as one integrated solution. And we serve enterprise, government, hyperscaler and AI natives. I'm often asked, why are we well positioned? And I like to think of it this way. Our NVIDIA cloud partner status supports our prioritised access to NVIDIA's latest generation of GPUs. Our networking, storage and orchestration are purpose-built for AI HPC workloads. Our Australian New Zealand hosted sovereign infrastructure is particularly relevant to regulated and related sensitive customers in the region. A capital efficient deployment model is built around partnering with leading data centre operators to deploy their T3 and T4 facilities. And by co-locating with the improved data centre infrastructure, we accelerate out of the deployment, reduce capital requirements and minimise the development risks associated with the Greenfield builds. finally while we're headquartered in australia our customers are global and our contract with wins this year emphasized just that point i said last quarter that we sold for one thing and that's scarcity and using that framework which hasn't changed i'd argue this quarter has validated it on all four fronts from a gpu allocation only access to nvidia's gpus remains one of the most critical constraints in this market. Manufacturing constraints and demand from hyperscalers continue to limit the supply available to everyone, and emerging providers are facing long lead times. Our NVIDIA cloud partner status, and now a six-year collaboration with NVIDIA, puts us in a unique position to provide access to AI compute. Power. High-density GPU clusters need substantial reliable power. However, ready data center sites with source power are becoming increasingly scarce due to grid constraints and long regulatory queues. Our multi-site data centre relationships underpin our secure capacity, which has now grown to 212 megawatts. On the regulatory fund, data residency and sovereignty requirements are becoming increasingly important across a number of markets. That trend supports our locally hosted model, and we extend our footprint to it this quarter with our first New Zealand facility. And finally, on capital and talent. Executing in this market takes significant capital and highly specialised HPC talent. Our successful capital ratings to date address the first issue and our senior hires, as I mentioned earlier, address the second in addition to our ongoing technical team build-out. So let me spend a bit more time on NVIDIA and our relationship. This is a first-of-its-kind partnership. Six years, an initial 72 megawatts, 40,000 GB300s and $4.9 billion of minimum revenue, or an average of $817 million of revenue per annum at implied base rates. But this partnership does two things. It expands our ability to provide computer access to the broader AI ecosystem, namely AI and AWS and enterprise customers, and it reinforces supply certainty at scale through the NVIDIA Cloud Partner Program. But the other thing we've seen it do is reaffirm to our partners globally that Sharon is a regional leader in AR computing. We are well positioned to expand our megawatts and GPU opportunities throughout the region with the support of all our partners and including NVIDIA. Next, I want to be clear about how this works commercially because I think it's been misunderstood based on some of the commentary we've seen. Under the agreement, NVIDIA provides a six-year anchor commitment. That commitment helps de-risk the capital investment by providing NVIDIA-guaranteed minimum revenue stream for the initial six-year period of the hardware deployed. This is viewed very favorably by debt providers who help fund a substantial capital investment in the GPUs and the associated infrastructure as they can bank the guaranteed revenues in their models. But the pricing under this agreement is guaranteed as minimum only. That is, it provides a floor, not a ceiling. We expect to secure customers for a significant portion of the GPU capacity at prices above the guaranteed minimum. In those cases, we retain 100% of the anchor price and then share the incremental revenue above it. Importantly, NVIDIA will share this incremental revenue too, which creates a new strategic alignment with NVIDIA who are incentivised to support us to both deliver a premium GPU service and to source and secure a higher rate to paying customers to maximise the share of the incremental revenue. importantly if we perform successfully under the initial 40 000 gb 300 allocation we believe there may be an opportunity to expand the program over time on the contracting model itself not much has changed from what i described last quarter but it's worth reiterating here's an example showing what a contract might look like in month one the customer contracts and repays an amount that free payment lets us submit the purchase orders for the specific gpus and networking infrastructure in a way that reduces our upfront capital output. Over months one to four we receive and install the hardware. The GPU and the other hardware is delivered within three to four months. Our final payment lands on delivery and installation configuration takes two to four weeks. From month five onwards we recognise monthly revenue on reserve capacity for the full term. For a take-for-pay contract we have paid irrespective for whether they use the compute 100% of the time or 40% of the time, which gives us real clarity on the expected revenues. And at the end of the term, depending on tenure, there might be several years less of useful economic life so we can recontract or sell to the on-demand market. The question we get asked the most is whether customers actually recontract, and I'd like to point out a few things. Data gravity or moving petabytes between clouds is a real switching cost, not moving compute. And the 600 petabytes committed under the expanded VAS data partnership is there for customers to grow into. Second, the platform itself. Because networking, storage, and orchestration are tuned to each workload, switching means rebuilding and revalidating their stacks. Third, the time to compute. Because redeploying elsewhere means a multi-month hardware and deployment lead times all over again for the customer. And finally, the upgrade path. Because as an NVIDIA cloud partner, we have priority access to generational upgrades of future GPU allocation. We can save the customer from joining us to queue for scarce supply. So who are our partners? We see our partner ecosystem as a unique differentiator. We orchestrate a best-in-class ecosystem around a single AI cloud platform, compute, data, networking, data centers, procurement and installation and hardware lifecycle support. We don't need to own every layer. Instead, we combine leading technologies and infrastructure partners within a single-share and AI platform. That model is designed to support faster deployment and more capital-efficient growth. To name a few, NVIDIA is our primary supply of compute. NextDC is our primary supply of data center capacity. And recently, our agreement with VAS has notably strengthened our storage strategy. and we can't forget worldwide technology which is our exclusive APAC procurement testing and implementation partner. It's also worth calling out that this partnership approach has had two big impacts. One is that this results in lower operational risk, greater market validation and credibility and two that internal technical headcount does not need to scale as fast as some others as they internalize these capabilities. And now to capacity and this is a piece of news I want to make sure it doesn't get lost today. Since our last capacity update, we have secured an additional 80 megawatts in Australia, taking our total secured AI factory capacity to 212 megawatts. To put that trajectory in context, we had 54 megawatts at the start of the year. We have therefore increased our secured capacity roughly four times year to date while accelerating customer wins. Demand has consistently brought a hand of what we can supply, so having 92 megawatts of secure and available capacity heading to the back half of this year is exactly the strong position we wanted to be in. But pipeline isn't just a number. It's a commitment to deliver compute online. And so I'm pleased to confirm that we have successfully handed over a B300 cluster to one of our customers this month as well. We actively focus on our next deployments of both B300 and GB300 equipment into the balance of this quarter and the early quarter floor. If you look at how the contracted revenue book has built throughout the year. It's a fairly steep line. We started Q1 with Canada, GMI and ESDS with a $1.3 billion of total TCB. In May, we announced a global technology company with a major Asia-packed presence for a further $950 million. In June, NVIDIA for $4.9 billion. And in July, the global AI lab for $1.32 billion. And just a few days ago, we signed another agreement with a global AI platform for $373 million. That takes us to roughly $8.8 billion of total contracted value for the 120 megawatts of contracted capacity, which leaves us with 92 megawatts available to sell. Finally, it's worth turning to our capital strategy. And we've secured approximately $2.2 billion of cash since December 2025. That includes the recent $1.6 billion strategic financing closed in the second quarter. The June financing was oversubscribed and led by a cohort of top-tier institutional funds, and we remain grateful to their ongoing support. Many of you will have joined the call today, and we appreciate your continued support and suggestions as we work to deliver our GPUs to the customers. On our close with four points on our outlook. First, demand continues to materially outweigh supply, and we secure 212 megawatts capacity for deployment by the end of 2027 while our contracting visibility now extends out through to 2031. Second, we're well-funded for our near-term build-out following the $1.6 billion financing and other capital raises to date. Third, we expect the first material revenue to commence in the fourth quarter of 2026 as light-scale B300 and GB300 deployments come online. And fourth, we're targeting more than 64,000 GPUs deployed by mid-2027 across our footprint in Australia and New Zealand. We've made significant progress in a short period of time, but the hard work is still ahead of us. Contracted revenue becomes recognised through execution, delivery and operating at the high standards our customers expect. That's what the next 12 months is about, and I'm confident in our ability to deliver. Finally, on a personal note, I wanted to take this opportunity to thank Tim Broadfoot, our CFO, for his work in getting to Sharon, where it is today. This will be Tim's last 10Q, and we look forward to a new school joining our team and leading the next call. Tim will continue consulting the company for a period, and we wish him all the best in the future. Operator, please open the line for some Q&A.

Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question for today is from Darren Eftahi with Lucid Capital Markets.

Hey, guys. Thanks for taking my questions and congrats on all the progress. Just two, if I may. The additional capacity, the 80 megawatts you guys added this morning in the release, is that source coming from the same partner you're working with or is it a new partner? Second question on the NVIDIA partnership, the 72 megawatts, any updates on releasing that? And with that question on the release, are conversations with customers, I assume, in the ballpark of where your latest contract was north of $4 GPU hour.

Thanks, Aaron, James. So new partner solution for the additional 80 megawatts. Fairly confident around, you know, some early megawatts, you know, potentially as early as late this year, but definitely in Q1 next year. So, you know, good to unlock some capacity there and delivery through 2027 from that perspective. um so you know the 80 megawatts is in australia um and there's some strategic activities we're focused on around that capacity and um at this time it's probably not appropriate to give you much more detail on it but you know as we've been through the whole history to date you know it's been about adding consistently megawatts across partners and delivery modules to get them get them online and and get those programs working um with respect to your second question um for the customer demand on the AICP program that we've been running for the 40,000 GPUs. Look, I point you to the announcement, you know, just this week, we sold that capacity for record dollars per hour or price per megawatt hour, depending on both ways you think about it, for both B300 and GP300. And that's the demand profile we're seeing and the pricing mechanisms that we're having with our pricing discussions we're having with our current customers. So, you know, we are seeing quite a constrained market ultimately for access to GPUs. And with those constraints, we're being able to, you know, incrementally increase those price per hour that we're getting.

Appreciate it.

We're really – and certainly the other thing is I'd say, you know, based on the customer demand profiles we're seeing, we'd expect that strong pricing to continue throughout the year.

Your next question is from Brett Knobloch with Cancer Fitzgerald.

Hey, guys. Thank you for taking my question. Related to kind of the NVIDIA contract, I know it's quite unique there, and congrats on adding the additional capacity in Australia. What is your priority to resell the potential backstop capacity from NVIDIA or to sell the remaining capacity or the remaining 92 megawatts that you have? Is there a preference for what would come first or what would NVIDIA want first? How should we think about that?

Great question. And we've been, you know, we often talk about our sales cycle, Brett, and that's probably the way we think about this. So, you know, when I talk about the program that we've got currently going to resell the space in Melbourne, that's compute that's very well designed. We have a very clear path about how we're going to build that out, what the compute form is going to be, when it's coming online, all the RFS dates are done. And so, you know, we know with that knowledge, we can start giving customers RFS dates and contracts. So short term, we're very focused on, you know, the resale of that NVIDIA capacity because, you know, there's a lot of deals there for AI natives and we're seeing a lot of demand in there. And the program really put us on the map, you know, globally for a lot of other customers that we didn't historically have relationships with. And so we've got some great relationships, which are giving us really good insight to then the other capacity that we've just announced. And so quite often, you know, I've spoken about this on several calls, but P to us is when we get capacity online and we know we've got energy or white space, we then have to go through a design process to get the right form factor of compute to then be able to take that out to customers. So we're early in the journey on the additional megawatts, but we are already having those conversations with those customers. So one of the great things we're seeing out of the resale process on the AICP is we're talking to these AI natives and they're looking at, you know, what's the rest of your capacity? What are you saying to our sales guys? What are you seeing for 27? What are you going to have online for 28? And so we're getting a lot more further out insight as to what customer demand profiles are looking like. And they're all asking for it. They're like, can we guarantee if we get, you know, 5,000 GPUs out of the 40,000 on this, can you guarantee us some, you know, 5,000 or 10,000 in your next, you know, bit of capacity that you're going to be building out? And so that's amazing from a forecasting perspective. It gives us a lot of confidence, but it also enables us to, you know, start to talk to those customers about specifically what they're looking for. You know, are you looking for a cluster with more storage next time? And so we can do a bit more planning. And so having that, you know, having released that additional capacity publicly and now being able to talk to customers about, you know, where we see that pipeline and, you know, what's publicly available as pipeline and then, you know, when we talk to them about what's not publicly available as pipeline, it's very helpful overall from an organizational perspective about planning overall capacity and how we're thinking about growing the business. Awesome.

Very helpful. On contract duration, you know, if I look at all the contracts you've signed, you know, maybe absent some of the really small ones, it's been five years except for NVIDIA at six. Is there a target duration you're looking for when you do ultimately get into the, you know, the resell or reselling the NVIDIA capacity? Like, you know, is it more one, two years? Is it shorter? Is there a target duration that we're thinking of?

Look, we're largely being driven by customers on that component and that conversation. I think every customer, you know, it's a bit of a balance between price and duration. Every customer would love to have the longest term they can is the general conversation we're having them. But the demand we're seeing is in a three to five year range. But they all want to lock up as much as they can. And so we're trying to find a balance book where we take the limited resource of 40,000 GPUs and split it between a mix of three to five year contracts. But also, depending on what we see that customer's forward demand profile or curve is, you know, think about how we match those things across, you know, future demand as well. So, you know, what we want to try and do is find those customers that we can expand, not just so, you know, once we've landed a customer, how do we expand the customer? Because it's a lot easier once you've got that customer on your books to expand those relationships.

Yeah, that makes sense. And then maybe just one follow-up from me. If I kind of like do some back of the map and math here on the storage with your partnership with Vest, it's, you know, about 100,000 GPUs, which is about similar to how much megawatts you've now secured following the 80. You know, at what point would you look to expand that, you know, just ahead of additional capacity ramp in the future? Are you thinking about that yet, or is that still a bit of a ways out?

Oh, great question. I mean, we always like to leave a few breadcrumbs in an announcement is the way we expect to think about it. And I think, you know, those early indications of where we're thinking as we sign those deals, like the one we did with Vast, you know, was a good indicator about where we were thinking the business was going and where we had a, where we thought that was, you know, where we thought we'd be announcing at megawatts as we came into this period. We're always in discussions with Vast, they've been an amazing partner. And so we are looking at how we span that storage. The other thing I'd just say more broadly on storage is, We've seen huge customer demand and shifts in the storage dynamic, and that is as to how we design a facility, how we turn on a facility is changing those dynamics as well as we're realizing with customers we need to be able to take more storage into a design beyond the standard three petabytes per 1,000 GPU sort of reference architecture. Customers are looking for more storage. And so, as we think about that, the recent $1.32 billion contract, you know, was 10 petabytes of storage per 1,000 GPUs. Now, that's a material upgrade from three. And that means you have to think about, you know, storage capacity, that additional loads, you know, traditionally the air-cooled loads attaching to, you know, our GB environment. So, there are mixes here that we have to start considering, you know, as we're seeing these shifts in storage.

Awesome. Really appreciate it.

Thank you, guys.

As a reminder, if you would like to ask a question, please press star 1. Your next question for today is from Michael Donovan with Compass Point.

Hey, guys. This is Ian Generous calling in for Michael Donovan. Congrats on the continued progress in signings. My first question, I just wanted to ask, your partnerships now include NVIDIA, Dell, VAST, and a number of data center operators. Can you talk about how those relationships support the growth strategy from here, whether that's validating next-gen GPUs, and what kind of line of sight they give you into future demand?

Yeah, so I think, you know, the demand cycle we're seeing from the, you know, we're seeing demand cycle from our partner network. Partners are obviously referring us to business, and that's very helpful. When we start to talk to our supply side on demand, you know, we're definitely hearing about supply constraints in market where customers are, you know, where customers, you know, their customers are experiencing demand. So what we're hearing through, you know, supply relationships with, you know, with the Dells, with the Super Micros, with the Lenovo's is, you know, an overwhelming story of large, large, large demand. But then when we talk to, you know, our storage customer partners like Fast and so forth, you know, we hear about what they're doing in storage and what other NeoClouds and other people in the space are doing. But really, by using this partner network, it's all about lowering our execution risk. And so everyone's got to have a relationship with an OEM. But when we have a relationship like a WWT and we have those relationships with, you know, the data center operators, it just, you know, lowers our overall net operating risk. And, you know, we get a lot of the customer referrals through those channels. So from that perspective, it's absolutely fantastic that that partner-led model and, you know, working within the ecosystem, you get a lot of, you know, insights as to those, you know, changes in customer profiles and how we need to be thinking about them before they necessarily need to be implemented in our business as well. Because, you know, like we've just mentioned before, you know, 10 petabytes per 1,000 GPUs. So I'm sure that VAS will tell someone else they need to start thinking about more storage per 1K customer for some of their other customers. And that may not necessarily, you know, be true for their customers today, but it is true for what we're experiencing. So that information through the network is very valuable over time, I think.

That's very helpful. Thank you. And as a follow-up, as those conversations extend into the next generation, how are you observing pricing dynamics on bare Rubens? Are customers engaging on Ruben commitments today for late 27, 28 deliveries? And how do you see pricing trending relative to GB300s, for example?

Yeah, so we haven't started pricing there, Ruben, but we are seeing an extraordinary amount of demand for it. So we are now actively having, you know, the capacity, as I sort of said, as I sort of said, you know, we go through, you know, design phases once we secure capacity and we work through those design phases to, you know, go to the DRB with NVIDIA around certain specific capacity and compute workloads. And that's when we then had those customer conversations for that specific compute demand in that location. That said, a lot of early demand for Vero Rubin. So, you know, those customers that we're talking to on AICP are saying, well, what's your late 27 VR capacity? Are we going to get some of that? You know, can you promise us some of that? You know, can we get our hands on it? So, you know, we are working through, you know, where the VRU deployments will be for us in, you know, maybe late 27, early 28. And then, you know, customers are already looking for us to, you know, secure and lock in those deliveries for them, ultimately. So, you know, we're very conscious of that in the way we're thinking about data center, procurement and data center capacity to procurement and design for implementation as well. That's great to hear. Thank you for taking my questions. We keep up the good work.

Your next question for today is from Jonathan Higgins with Unified Capital Partners.

Hi, guys. Thanks for taking the time today. Congratulations on the momentum. Just a couple from me today. Firstly, just on capacity, you're sort of averaging about a billion dollars in TCB being signed, if not more, every month, and the deal frequency is getting better or getting more frequent, sorry. How do you sort of strategically think about that capacity? You know, you've raised it today to obviously 200 or above. How should we think about that, you know, probably into 2028 and what you're seeing on the demand side of things?

Yeah, I mean, capacity is a great, great question. And we're thinking about how we grow. And we haven't provided guidance out through 2728 for additional megawatts than what we've done, obviously, to market. And, you know, we've taken an approach where once we announce some capacity, we're very focused on designing and delivering that capacity and allocating that capacity to customer contracts. So, you know, it is, to your point, there is a bit of momentum there. We are, you know, contracting at a faster rate. And we're trying to focus on those customers that can grow with us and bringing on good quality, high quality customers that will take up that capacity. I'd expect you'll see, you know, in the forward period, us announcing some customer contracts, which will be attached to that. There's that capacity that we've already got locked up under AICP. So you'll see some re-contracting of some of that capacity from our perspective. So there's a little bit of that for us to work through over the forward period. And then we're going to be starting to work through again the outlook capacity that we've got coming up. You know, and there's a few 1K classes and some smaller classes for us to, you know, contract and announce as well that we're very focused on, you know, from a deployment perspective. So, you know, bringing that all together, you know, I think, you know, I'm not going to promise you the same momentum or the same pace, but we do have quite a lot of customer conversations. They're very materially advanced for the existing AICT cluster. And then, you know, we are starting to have those early conversations about, you know, the larger announced capacity when that's coming online. and so forth so you know we've got to go through as i alluded to earlier we've got to finalize those designs so we perform factor the delivery dates and you know work with our oem partners around that delivery um so we can firm up the rfs dates but um you know we want to get customers on those gb 300s we want to deliver that in 27 we want to make sure we're there for those customers for vr in uh 2028 um and how we match it mix and match all of those you know obviously we're going to need additional capacity we're very clear that we are ambitious about growing those things but i've always said this is a customer journey in many ways it's you know we're matching our capacity

to our customer demands and making sure that you know we're comfortable that we can finance those and get those things deployed in appropriate time frames you understand sort of stepping through it and just another one i mean you sort of talk about the sovereign sort of capability of the group you know the demand that's in australia new zealand half of asia pacific can you talk about that you You know, like, give us an idea of what the demand is or the shortages are out of, you know, ANZ in Asia versus, say, like, what you're seeing in the US. Like, is it, you know, are they having a greater inability to be able to source the compute than what you're seeing in, say, the US market, which is obviously experiencing shortages as well?

I think the entire market's constrained to start with. So it doesn't matter whether we're talking to customers that are in North America or in Asia or Australia. The entire market's constrained. and so when you start talking to any of the customer conversations that we're having, you know, it's for hundreds of thousands of GB300s just on this AICP program, we've got 40,000. So, you know, we've got a multiple of the cluster that we have in demand and so that's why these conversations and releasing some additional capacity and announcing that is very useful because what we can start to talk to is, hey, yeah, we can give you 5,000 or, you know, a number of the 40,000 GPUs, and we can work with you on this additional capacity for 27, and we can work with you for this in 28. And so those conversations are, you know, giving customers a pipeline, making sure they've got access to compute and democratizing that access and making sure we've got, you know, a lot of customers on it because we want to broaden the base, ultimately, of customers on the compute. And so we're not just focused on those, but also, like, the smaller 1K clusters, those customer contracts, because as you land those and expand them out, you know, finding lots of customers on 1K or 1.5K clusters and the ability to grow out that is very important for us as well. So, look, I think, you know, the only other thing I'd say is the demand from both U.S. and Asia is equally strong, but we're very focused on, you know, having that balanced customer book. So, but we are very much prioritizing those customers that we think have got, you know, strong growth profiles so we can expand those relationships over multi-year terms.

Excellent. I might just take one more if that's okay. Just more on the financial side of the business. So, I mean, the financing, as you say, you know, in your release, you're talking about you've got a lot more dry powder than you had at the start of the year. And with the NVIDIA deal and the movement that we've seen in sort of financing and the like, can you talk about how you're sort of seeing the IRRs in the business? You don't need to necessarily call up another, but how are you seeing them and where the cost of finance has moved for you guys and the ability to access that over the last sort of several months from the last quarter?

Yeah, so I think, you know, what we did in the last quarter has been, you know, phenomenal and we're very, very, very thankful for our, you know, ongoing shareholder support, you know, with the $1.6 billion raise and Oatree's earlier one for the convertible note that was, you know, they were all instrumental steps for us to grow this business. And, you know, so I think, Like, you know, we have been very lucky that, you know, we've had that level of support from equity markets and, you know, the trust in us delivering that story has been, you know, given to us. You know, on the debt markets piece, you know, we're very advanced on debt facilities across the business. You know, we'd expect to be coming to market and exploring and explaining some of those solutions that we've got near term. I won't bid against myself, Jono, and tell everyone where we are on pricing and so forth from this call, but we are seeing really strong, and you can see that at the top line, you can see that in the price per megawatt or price per GPU hour, we're seeing very strong pricing on the compute side that's reflective of the strong customer demand, and that's reflecting very strong IRRs, which is supportive of a dead environment, ultimately. So, you know, we've just recently, you know, concluded our full technical diligence for lenders, and, you know, we got through all of that in, you know, in very short order and in very good order. So, you know, we're very comfortable with that delivery now on that program. So, yeah.

Thanks, guys.

Your next question is from Fedor Shatalin with B. Riley Securities.

Thank you very much, operator, and good time of day, everyone. my question is kind of a follow-up offer for the first two questions have been asked so on the Nvidia partnership and the GB 300 capacity under the management on what kind of customers are targeting to feel that capacity and can you frame how much of it you expect to be contracted like take a pay versus sold on demand is their preference here and and related to that does the mix skew differently by customer type like hyperscaler versus um enterprise and how does that affect the gpu hour rates you're underwriting and if you can comment on what's the deployment

schedule looks like for for these 40 000 gpus uh um that would be super helpful thank you very much well thanks for the question uh no it's uh always always always happy to give you the the breakdown um for the ai natives that we're seeing on the aicp program i think you can expect the vast majority will be them on take or pay um so you know who are they that you know they're various model builders inference providers and you know we'll be deploying that over the you know first half of 2027 um and that that computer will be online um we are seeing you know there'll be a little bit of spot um but vast majority will be you know as i alluded to earlier those three to five year terms um you know on a take or pay basis so you know very focused on those customers that we can grow with um and so i think the great thing for us is that they've been a really good way for us to you know get that early conversation about what they need elsewhere in our capacity pipeline for 27. And so we're seeing those AI and 80s all wanting to lock up as much compute as possible for as long as possible. And the overwhelming comment is, can we have more and can we have term? And so we're trying to balance that against what we can see is clearly a constrained market and matching all those components so we can continue to grow and execute but also know that you know it's um it's fully deployed um and you know we don't have a huge customer churn across the platform um because you know while you might look at doing some of those customers on spot and we'll have a portion of the the marketing spot it's a lot easier to have those customer relationships you know the the egress that we talk about for storage you know when you're at four thousand or five thousand gpus um it is a bit of work you know egressing customer on an offer on a network at that scale and so you know it makes a lot of sense to keep them locked in for a bit more term versus a short-term spot for that sort of stuff if it's the imprint stuff we're going to see that inference um you know can come and go a lot faster um but you know a lot of the ar natives are looking for a longer term solution with a bit more storage deployment um so you know we're looking to ensure that we've got deployment over you know half one 2027 with full billing on um at latest um in q3 across that cluster that's helpful and my follow-up is um you've guided to to revenue ramping materially from third quarter this year for 2027 and um my question is what's the biggest swing factor that could push that ramp uh like

into 4Q? For example, is DS, right? We have, if I recall correctly, service start date is September 16th. Just want to figure out what could potentially happen, or you can just reassure us that this is the starting date.

Yeah, great question. So, you know, we've currently, you know, We've got RFS dates from a data centre perspective. We obviously rely on our data centre partners to make sure they do their delivery. We are carefully tracking and monitoring our supply deliveries. So those deliveries are super micro, for instance. But if you say what are the risk factors, it's hardware delivery and data centre readiness. They're the two ones. And they're third-party supplier relationships. We'll have a very solid Q4. You know, we believe that, you know, it's an end of Q3 turning on. So, you know, Q4 would be where you materially see that revenue ramping. So, you know, as I sort of alluded to on the floor, we've delivered the B300 to that customer. So, you know, so we're mid-quarter now. So you'll see, you know, a month and a full month and a bit of billing in Q3 for the B300 as well. So that's all starting to ramp. And then you'll see the, you know, as we get the hardware deployed and, you know, We were out looking at the site last week. Physically, the data centers look like they're in good order. We're getting through those processes and deployments. So we've just got to get the compute online and get it delivered and get it online and then hand it over to the customer. But I think you'll see a solid Q4 result on those numbers.

Thank you very much, David. And I promise this is the last one. You raised the mid-2027 GPU target and secured capacity multiple times since June. And just a question, is that a port revision being driven by signed contracts pulling capacity forward or by anticipated demand ahead of signed paper? And kind of what conditions make you confident to post contracted megawatt target if it will happen?

Thank you.

Yeah, so I think, you know, the customer demand is definitely there. And then the data center delivery piece, we're very confident of, you know, looking at the, you know, from our perspective, how we look at those things being built and delivered. You know, we can see that the data centers can be built and delivered in that time frame. So, the 64,000 GPUs that we're talking about is contracted demand by mid-27. So, we're very comfortable about that. We don't have an issue with that. So, it's really then how we think about, you know, what else are we delivering in 27? and, you know, we upgraded the 80 megawatts today and we'll look to update additional megawatts in the future. But as you know, we've been slowly, slowly building this story out and it doesn't feel so slow when you're inside the business. I can assure you, you know, we're constantly adding, you know, people and team to make sure that we can deliver and that's really, really important. So, you know, we moved from 132 megawatts to 212 megawatts by the end of 2027 today. You know, I just point back to our history from where we came through from the beginning of the year. And I know there's a slide in the deck about, you know, how we've upgraded megawatts. So, you know, I'm not going to promise you I'm going to upgrade at that rate all the way through 27 for my 27 turn on dates. But we are very focused on how we expand our 27 opportunities. um you know we've we've 4x capacity in sort of eight months across the business um i don't know if i can promise you a 4x capacity in the next eight months but you know we're going to work really hard to add capacity um but we've got to do it in measured way we have to make sure that the customer you know are signing contracts and we have to make sure the finances uh you know financing for each of these sort of deals are in place before we just go and sign up um we're not going to go YOLO capacity without having the right dynamics in place, both around the customer and the financing economics are in place to do this.

Thank you for all the details and continue and best of luck.

Great. Thank you very much. So I think that concludes our call today. I just wanted to say thank you for all our shareholders and everyone that was on the call and listened to us uh importantly i wanted to say thank you to our team um they continue to execute we got that b300 on this you know recently and we're moving to deliver the next the next battle to compute so it's really important our team uh team here's my thanks for delivery because 2026 and uh 2027 will be the uh the year about delivery for us so um i just want to reiterate from a closing position we're both well positioned financially and operationally to continue to grow the the apac story, both Australia, New Zealand, Asia-PAC markets across the balance of the year and beyond. And we just wanted to thank everyone for their support and time again today. Thank you.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.