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 AMDDealroom has a profile for this one. Try Dealroom → 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
