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Australian AI infrastructure company Firmus Technologies has signed a strategic partnership with Nvidia to deploy 170,000 graphics processing units (GPUs) and expand AI cloud infrastructure aimed at emerging AI companies.
Under the agreement, Firmus will purchase Nvidia infrastructure and offer Nvidia-powered cloud services to customers, including AI-native startups. The arrangement will generate product revenue for Nvidia while also giving the chipmaker a share of cloud services revenue.
The first phase of the deployment will deliver 170,000 GPUs between the first quarter of 2027 and early 2028. The infrastructure will be hosted in Batam, Indonesia.
Firmus said it expects the partnership to generate up to $30 billion in revenue during the first six years, based on customer commitments.
The company said the initiative is designed to lower barriers to AI infrastructure by giving smaller AI companies access to computing resources that have largely been concentrated among hyperscalers and well-funded AI developers.
"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," he said.
The announcement comes as demand for AI computing infrastructure continues to outpace supply, prompting cloud providers, chipmakers and infrastructure companies to invest heavily in GPU capacity for AI training and inference workloads.
Nvidia is already an investor in Firmus, having participated in the Australian company's previous capital-raising rounds, according to Firmus.
In April, Firmus said it had raised $1.35 billion over the previous six months, valuing the company at $5.5 billion after the funding round. According to Reuters, the company has also appointed investment banks to prepare for a potential initial public offering.
Under the agreement, Firmus will purchase Nvidia infrastructure and offer Nvidia-powered cloud services to customers, including AI-native startups. The arrangement will generate product revenue for Nvidia while also giving the chipmaker a share of cloud services revenue.
The first phase of the deployment will deliver 170,000 GPUs between the first quarter of 2027 and early 2028. The infrastructure will be hosted in Batam, Indonesia.
Firmus said it expects the partnership to generate up to $30 billion in revenue during the first six years, based on customer commitments.
The company said the initiative is designed to lower barriers to AI infrastructure by giving smaller AI companies access to computing resources that have largely been concentrated among hyperscalers and well-funded AI developers.
"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," he said.
The announcement comes as demand for AI computing infrastructure continues to outpace supply, prompting cloud providers, chipmakers and infrastructure companies to invest heavily in GPU capacity for AI training and inference workloads.
Nvidia is already an investor in Firmus, having participated in the Australian company's previous capital-raising rounds, according to Firmus.
In April, Firmus said it had raised $1.35 billion over the previous six months, valuing the company at $5.5 billion after the funding round. According to Reuters, the company has also appointed investment banks to prepare for a potential initial public offering.
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