Australia's Firmus Technologies strikes AI access deal with Nvidia

By Scott Murdoch

SYDNEY, June ‌29 (Reuters) - Australian AI ​infrastructure ​company Firmus Technologies said on Monday it had signed a strategic partnership with Nvidia Corp to help provide emerging AI ‌firms with more cost-effective access to computing power.

• Firmus said ⁠the deal would see it buy Nvidia infrastructure and sell Nvidia‑powered cloud services to "AI ‌Native" customers, among others, ‌in an agreement that would earn the U.S.-listed chip giant product revenue and a share of cloud revenue.

• The deal will deliver 170,000 ​Graphics Processing Units (GPU) from the first quarter of 2027 to the start of 2028, that will be located in Batam, Indonesia.

• Firmus ⁠said it expected to earn up to $30 billion in revenue during the first six years of ​the deal, based on customer commitments.

• The Australian-founded company said the deal would make it easier for smaller and ​developing AI firms to access the ‌technology's infrastructure.

• "We have worked to figure out how to close the gap between the cost benefits that the large ⁠guys have access to, which they do because they have great credit ratings, and the guys that are up and comers," Firmus co-chief executive Tim Rosenfield ⁠told Reuters. "This is actually a really material way to level the playing field a ​little bit to give the next a chance to compete with the big guys."

• Nvidia has participated in Firmus' previous capital raisings making it an investor in ‌the Australian firm, according to Firmus.

• Firmus said in April it had raised $1.35 billion over the previous six ‌months, giving it a $5.5 billion post-money valuation. It has appointed investment banks ⁠to work on a potential ‌initial public offering, according ​to people familiar with the matter.

• Rosenfield declined to comment on Firmus' IPO preparations.

(Reporting by Scott Murdoch; Editing by ‌Kate Mayberry)

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