SYDNEY, June 29 - Australian AI infrastructure specialist Firmus Technologies announced it has entered a strategic partnership with Nvidia Corp aimed at expanding access to high-performance computing for emerging AI companies.
Under the terms disclosed by Firmus, the company will purchase Nvidia infrastructure and resell Nvidia-powered cloud services to customers described as "AI Native" among others. The arrangement is structured so that Nvidia will receive product revenue from hardware sales and a share of the cloud revenue generated by the services Firmus provides.
Firmus said the agreement will result in the delivery of 170,000 Graphics Processing Units (GPUs) to a facility in Batam, Indonesia, with the equipment scheduled to arrive from the first quarter of 2027 through the start of 2028.
Based on customer commitments, Firmus told investors it expects the pact to generate as much as $30 billion in revenue for the company over the first six years of the arrangement.
Details and strategic rationale
Firmus framed the deal as a way to reduce the cost barrier that smaller and developing AI firms face when trying to access large-scale compute resources. The company said the partnership is designed to narrow the advantage enjoyed by major AI players that benefit from more favorable financing and scale.
"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 said. "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."
Firmus also noted that Nvidia has previously participated in the company's capital raisings, making Nvidia an investor in the Australian firm.
Financing, valuation and IPO preparations
Firmus said in April that it had raised $1.35 billion over the prior six months, resulting in a $5.5 billion post-money valuation. The company has engaged investment banks to work on a potential initial public offering, according to people familiar with the matter. Firmus' co-chief executive declined to comment on the company's IPO preparations.
Implications for customers and market participants
Firmus presented the partnership as a mechanism to provide smaller AI developers with improved access to Nvidia-powered infrastructure via a reseller model. The company will own the hardware, operate cloud services powered by that hardware, and share revenue with Nvidia under the terms disclosed.
Key facts restated
- Firmus will buy Nvidia infrastructure and sell Nvidia-powered cloud services to "AI Native" customers and others.
- 170,000 GPUs will be delivered and located in Batam, Indonesia, from Q1 2027 to the start of 2028.
- Firmus expects up to $30 billion in revenue during the first six years of the deal, based on customer commitments.
- Nvidia has previously invested in Firmus through participation in its capital raises.
- Firmus raised $1.35 billion over six months, valuing the company at $5.5 billion post-money; it has appointed banks to advise on a potential IPO, and the co-CEO declined to comment on listing plans.