NVDA Stock Alert: What to Know About Nvidia's Latest Deal With SharonAI

Nvidia (NVDA) has announced a six-year strategic compute collaboration with SharonAI (SHAZ), a neocloud company focused on high-performance computing and artificial intelligence (AI) infrastructure.

The deal will enable 72 MW of new data center capacity in Australia, deploying NVDA’s DSX AI factory design and scaling up to 40,000 GB300 chips to serve university researchers, enterprises, and AI startups.

Nvidia stock remained rather muted on the announcement Friday, but is up nearly 14% year-to-date at the time of writing.

Significance of the SHAZ Deal for Nvidia Stock

The collaboration is structured through a revenue-sharing and credit-support model, allowing SharonAI to commit to large-scale Nvidia infrastructure while aligning economics in a capital-efficient manner. 

Nvidia will earn both standard product revenue from hardware sales and a recurring, usage-linked share of cloud revenue on the supported capacity. 

This structure is designed to accelerate the adoption of NVDA platforms among customers that historically lacked access to capital-intensive AI infrastructure, while providing the giant with a new recurring earnings stream.

For Nvidia, this partnership fits within a broader strategic pattern of deepening relationships with regional cloud partners and sovereign AI initiatives to expand its addressable market beyond the hyperscaler segment. 

The company’s CFO has previously noted that about half of data center revenue comes from artificial intelligence-focused clouds, which represent one of the fastest-growing parts of the business. 

SHAZ’s revenue-sharing agreement is a relatively novel structure that could serve as a template for similar deals with capital-constrained partners globally.

Significance of the NVDA Deal for SHAZ Shares

Following the agreement, SharonAI’s total artificial intelligence factory capacity has expanded to 132 MW, with 102 MW now contracted to end customers, and the company expects to have more than 55,000 total Nvidia GPUs deployed by mid-2027. 

This massive Nvidia deployment is largely bullish for SHAZ shares, as securing premium, high-demand hardware locks in multi-year enterprise revenue. 

It positions SharonAI as a key infrastructure provider, accelerating cash flow and boosting investor confidence in their ability to scale rapidly ahead of competitors.

Unlike Nvidia, SHAZ shares closed more than 10% down on June 12, indicating the market views this deal as more significant for the smaller partner while representing only incremental revenue for NVDA.

But Wall Street sees this dip as an opportunity for long-term investors, with the only two analysts who currently cover SharonAI stock rating it a “Strong Buy,” with potential upside to $79.50 on average.  

This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.