SCX.ai partners with DDN to scale Australia's largest sovereign AI inferencing cloud, adding $6.5M ARR and 400 users post-IPO. The partnership integrates DDN's Infinia platform for sub-millisecond latency.
SCX.ai, the Australian sovereign AI infrastructure company that listed on the ASX last week, announced a partnership with global data intelligence firm DDN to expand what it calls the country's largest sovereign AI inferencing cloud.
The deal integrates DDN's Infinia data platform with SCX's ASIC-accelerated infrastructure. The combined system is designed for Australian enterprises, government agencies and research institutions that need to keep models and data inside the country, according to a statement Monday.
The announcement follows SCX's $40 million IPO on Aug. 21, which made it the first ASX-listed pure-play sovereign AI inference company. The company entered the public market with $6.5 million in contracted annual recurring revenue at the end of July, up 20.9% since May. The platform now has more than 400 active users.
SCX's first sovereign AI node is operational at the Equinix SY5 data centre in Sydney. The company is accelerating deployment of Node 2, targeted for the end of 2026, with plans for additional nodes across a national network.
DDN's Infinia platform eliminates I/O stalls and maximises hardware utilisation by delivering sub-millisecond latency and up to 27x faster KV cache loading, the companies said. That allows large context windows and agentic AI workloads to run without compromising speed or data privacy.
"For the first time, Australian organisations have access to a fully domestic, enterprise-grade AI cloud that scales effortlessly," SCX founder and CEO David Keane said in the statement. "This partnership supercharges our mission to deliver advanced AI entirely onshore, without compromising speed, security or sovereignty."
The infrastructure uses purpose-built SambaNova AI processors and air cooling, avoiding the large water volumes required by many conventional AI data centres. Testing disclosed before the IPO showed SCX's SambaNova-based systems delivering approximately 2.5x to 5.6x the performance per watt of GPU-based systems across selected stable inference workloads, depending on the model and hardware configuration.
DDN CTO Sven Oehme said the partnership removes the biggest barrier to AI performance: the data layer. "By eliminating I/O bottlenecks and enabling extreme concurrency with sub-millisecond latency, we're fundamentally changing the economics of inference," he said.
The expanded cloud capacity will also support Project MAGPiE, a sovereign large language model fine-tuned for the Australian cultural and commercial context.
The risks for SCX are execution and adoption. The company is small compared with global hyperscalers that offer AI cloud services from AWS, Microsoft and Google. Building a second node by year-end requires capital and supply chain coordination. The $6.5 million ARR is modest, and converting the 400 active users into larger contracts will determine whether the sovereign AI thesis gains traction beyond government and research.
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