Australia's Firmus Technologies strikes AI access deal with Nvidia

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

SYDNEY, June 29 : 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.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

• 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.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here