Canva's $23M Sharon AI bet turns to paper gains as neocloud raises $1.6B
What's the deal? Sharon AIDealroom has a profile for this one. Try Dealroom →, a Sydney-headquartered neocloud, raised US$1.6 billion in June, capping a capital-raising spree that has drawn investment from design giant Canva. SEC filings show Canva backed Sharon AI's US$103 million pre-IPO convertible-note round last December, a stake that has since converted into 406,000 shares worth about US$23 million.
What does Sharon AI do? The company rents capacity from data centres and, using its stock of Nvidia and AMD processors, sells compute for AI training and inference. It has signed contracts worth a combined US$8.8 billion, typically spread over five or six years.
Who else invested? Canva was among the biggest backers of the December round, behind Australian fund managers Regal Funds ManagementDealroom has a profile for this one. Try Dealroom → and Ellerston CapitalDealroom has a profile for this one. Try Dealroom →, plus Nevada's Digital AlphaDealroom has a profile for this one. Try Dealroom →. Malaysian investor Kie Chie Wong, an early backer of Andrew Forrest's FortescueDealroom has a profile for this one. Try Dealroom →, also participated.
Why it matters for Canva: The investment came two months before Canva became a tentpole customer of Sharon AI, which has called it among its "first major" customers. Co-founder Cliff Obrecht said last week that Canva had doubled down on internal AI model development after its reliance on OpenAI and AnthropicDealroom has a profile for this one. Try Dealroom → caused cost blowouts and product delays.
The paper gains: Canva's notes converted at US$12.53 a share. With Sharon AI's stock now near US$59, the investors are sitting on handsome gains. Canva's stake amounts to just over 1% of the company.
By the numbers: Sharon AI has raised US$2.15 billion since December, including the US$1.6 billion June round and US$125 million from its February Nasdaq float. Yet revenue for the three months to June 30 was just US$1.9 million, underscoring how early the company is in realising its value.
What could go wrong? More spending looms. Sharon AI flagged over US$2 billion in contracts with India's ESDSDealroom has a profile for this one. Try Dealroom → and an unnamed tech firm that will require around US$1.2 billion in GPUs and equipment. It expects to fund 70% to 80% of that via debt but has not finalised agreements.
The signal: Sharon AI's rapid-fire raising — and Canva's dual role as investor and customer — captures the spending bonanza fuelling the AI boom, where compute providers rack up billions in commitments long before revenue catches up. The company plans a dual listing on the ASX later this year.
Read more: forbes.com.au
Image credit: cbowns
