NEW YORK, August 28, 2026, 11:13 (EDT) – SharonAI shares slid 4.2% as uncertainty grew over its $4.88 billion deal with Nvidia, following Nvidia’s decision to suspend financing arrangements.
- Shares in SharonAI were at $56.73, down 4.2%, as of 10:53:32 EDT.
- Nvidia has reportedly halted certain elements of a cloud-financing initiative that began less than two months prior.
- SharonAI’s deal with Nvidia is valued at as much as $4.88 billion.
SharonAI Holdings Inc. (NASDAQ: SHAZ) slipped 4.2% on Friday, following reports that Nvidia had halted certain aspects of a revenue-sharing finance scheme. Shares changed hands at $56.73, with trading volume at 729,246 as of 10:53:32 EDT.
The drop wiped out around $47 million in implied equity value. SharonAI’s market capitalization was close to $1.06 billion.
The response highlights a funding gap. SharonAI has secured contracts worth billions, but its reported revenue is still limited.
Nvidia has put certain credit-supported revenue-sharing agreements on hold, Reuters said on Thursday. The company stated that its overall model is still active and continues to develop Reuters.
The initiative aimed to support smaller cloud providers in funding Nvidia systems. Nvidia would have the option to lease back unused capacity, increasing lenders’ assurance.
SharonAI’s filing from June outlines a six-year deal with Nvidia for compute, valued at as much as $4.88 billion. The document also states that SharonAI is required to obtain debt or equity funding for its deployments SEC filing.
| SharonAI metric | Latest figure | Investor read-through |
|---|---|---|
| Share price | $56.73; down 4.2% | Implied value drop of about $47 million |
| Nvidia agreement | Up to $4.88 billion | Significant deployment and financing risk |
| Total contract value | $8.8 billion | Long-term deals; not recognized GAAP revenue |
| Second-quarter revenue | $1.9 million | Contracts still in early revenue phase |
| Cash | $1.9 billion | Key resource for expansion |
| Second-quarter net loss | $430.4 million | Largely attributed to non-cash fair-value impacts |
The difference in scale is notable. Nvidia’s $4.88 billion deal amounts to about 2,500 times the revenue reported in the second quarter.
SharonAI announced a total contract value of $8.8 billion on August 6. This figure represents projected committed expenditures over the duration of contracts, rather than present revenue company results.
As of June 30, cash stood at $1.9 billion. Revenue for the second quarter totaled $1.9 million, and adjusted EBITDA was a positive $0.6 million.
The net loss of $430.4 million includes significant non-cash items totaling $423.8 million, mainly driven by changes in the valuation of convertible notes.
The SEC filing outlines further execution challenges. Deployment of GPU clusters must follow phased delivery, undergo testing, and receive acceptance within a tight timeline.
Risks: The announced pause could be modified, and current contracts are likely to stay in place. However, increased financing expenses or delays in equipment delivery may slow the conversion of revenue.
Friday’s action reflects concerns over implementation risk rather than just subdued AI demand. Investors are expected to monitor any changes to contracts, funding arrangements, and indications that contracted capacity is being converted to billed revenue.
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