SharonAI Holdings (NASDAQ: SHAZ) has secured US$1.6 billion through a private placement financing to support its AI infrastructure expansion in Australia.

The transaction includes around US$900 million from the sale of common stock and pre-funded warrants, alongside US$700 million in 4.75% convertible senior notes due 2032.

The financing was anchored by Situational Awareness L.P. and funds managed by Oaktree Capital Management, with participation from new and existing institutional and strategic investors.

The proceeds plan to support its previously announced six-year strategic compute collaboration with Nvidia. The company plans to deploy one of Australia’s largest AI factories, including up to 40,000 Grace Blackwell GB300 GPUs.

The company’s total AI factory capacity has grown to 132MW, with 102MW contracted to end customers. It expects to deploy more than 55,000 Nvidia GPUs by mid-2027.

James Manning, co-founder and CEO of Sharon AI, said the financing would help the company accelerate the deployment of AI factories across Australia and Asia-Pacific.

“We continue to see demand for GPU compute significantly outpacing supply, with strong demand from AI-natives, enterprise, government, research, and hyperscale customers.”

As part of the financing, Sharon AI will issue 6.7 million common shares at US$68.73 per share, as well as pre-funded warrants to buy a further 6.4 million shares at a near-identical price.

The company will also issue US$700 million in convertible senior notes due 2032. The notes carry an annual interest rate of 4.75%, paid twice a year, and can be converted into Sharon AI shares at an initial conversion price of about US$99.66 per share. That represents a 45% premium to the share price used in the private placement.

The financing is expected to close on or around June 22, 2026, subject to customary conditions. Sharon AI said further details will be disclosed in a filing with the US Securities and Exchange Commission.

Goldman Sachs & Co. LLC is acting as lead placement agent, while Lucid Capital Markets is also serving as placement agent. Macquarie Capital is financial adviser to Sharon AI, and Sheppard Mullin Richter & Hampton is legal adviser.