Sharon AI Secures $356 Million GPU-Backed Debt Facility
Key Facts
Sharon AI announced on October 1 that it had entered into a $356 million GPU-backed debt facility, carrying a fixed interest rate of 9.95% before fees, according to a company statement. It said the facility provides financing for GPU deployments, with the units and related cash flows serving as collateral. The announcement comes as the company expands its cloud computing infrastructure, alongside its use of equity financing. Details of the new financing discussed in a press report, including its value and the parties involved, could not be confirmed from an open official source. The confirmed information on financing therefore remains tied to the facility the company announced in October.
Sharon AI described the October facility as the first in an expected series of financings tied to GPU units. It said these financings will support the scheduled deployment of more than 68,000 NVIDIA units by mid-2027. The announced facility is backed by GPU units and related cash flows, according to the company statement. The company also said closing the deal would bring the total institutional capital it had raised through debt and equity to more than $2.6 billion in the 10 months before its announcement. These figures reflect the company's plan to finance its expansion through a mix of debt and equity instruments.
Sharon AI closed a $1.6 billion strategic financing in June, including about $900 million in equity and warrants, alongside $700 million of convertible notes due in 2032. The financing, the company said, was anchored by participation from Situational Awareness and Oaktree. In its second-quarter results announcement, the company said its strategic collaboration with NVIDIA runs for six years and is valued at $4.9 billion, covering up to 40,000 GB300 units. It also reported a five-year, $950 million pay-as-you-go contract with a global technology company. These financing and contractual arrangements put the company's computing deployment plans in the context of commitments spanning several years.
Sharon AI announced that total contract value reached $8.8 billion on August 6, but stressed that this operating metric does not represent revenue recognized under US GAAP. In the second quarter of 2026, the company reported revenue of $1.9 million, up 412% from the same period in 2025. Cash and cash equivalents totaled $1.9 billion as of June 30. It also reported a net loss of $430.4 million, including $423.8 million in non-cash items, among them a $400.4 million fair-value loss on convertible securities. These figures underscore the difference between announced contract value and quarterly revenue recognized, alongside the scale of cash holdings and reported losses.
In subsequent operating updates, the company said it had added 80 megawatts of capacity, bringing the total to 212 megawatts, and expected to deploy more than 64,000 NVIDIA units by mid-2027. It also announced a five-year, $1.32 billion pay-as-you-go contract with a global AI lab and another five-year, $373 million contract with a global AI platform. Chief Executive James Manning said in October that the facility shows how the company expects to access debt markets to finance GPU deployments, drawing on a contract backlog with a total value exceeding $8.8 billion. He said: "This facility demonstrates how we expect to access debt markets to finance GPU deployments, leveraging our customer backlog with a total contract value exceeding $8.8 billion."
Sharon AI said revenue is expected to increase materially from the third quarter of 2026 through 2027. The company scheduled its third-quarter results announcement for after the market close on November 16, 2026, with an investor call at 4:30 p.m. Eastern Time. The reported results will provide the company's latest data on revenue and financial performance following its expansion in financing and contracts. In available market data, KKR shares closed at $100.05 and BlackRock shares at $1,226.31 on November 11; these prices do not establish that either company participated in the financing being discussed.