As the global AI race continues to ramp up, a US-based hardware pioneer is bringing new inference capabilities to Australia, with energy efficiency and data sovereignty front-of-mind.
California-based SambaNova is partnering with Australian infrastructure provider SouthernCrossAI (SCX) to create enterprise-grade AI ‘factories’ across Australia.
‘Our focus is on creating the AI infrastructure Australia can afford, both economically and environmentally,’ says SCX co-founder and CEO David Keane.
‘We looked across the globe to find the next generation of AI chips that could deliver the performance we need with a capital-light investment approach,’ he explains. ‘We wanted to produce the world’s most efficient AI with the highest level of output per watt of energy input.
‘SambaNova fit that bill.’
Energy-efficient AI infrastructure
SambaNova builds Application-Specific Integrated Circuit (ASIC) microchips, optimised for speed and energy efficiency. ASIC chips are distinct from Graphics Processing Units (GPUs), which are more general-purpose, and well-suited to training AI models.
SambaNova’s ASIC Reconfigurable Dataflow Unit (RDU) chips are specifically designed for inference — the use of those models in AI applications to ask and answer questions, or draw conclusions based on data or in an agentic flow.
According to SCX data, ASIC chips are up to 10 times more energy-efficient and up to three times faster in completing inference tasks – reducing power and eliminating water consumption. ASIC chips can be deployed within existing data centres due to lower power requirements and air cooling, eliminating the need for costly new purpose-built facilities.
‘There is no need to wait for new data centres to be built, power and water to be allocated, or expensive and time-consuming retro fits,’ says Warren Schilpzand, GM Australia/New Zealand and ASEAN, SambaNova. ‘This makes it possible to bring AI at scale to users everywhere, including in regional and remote areas.
‘On the applications side, low latency and high tokens per second will support AI developers to deliver complex agentic systems, integrate AI deeply in applications and deliver positive customer experiences,’ he adds.
A partnership built on mutual growth
For SambaNova, Australia is a compelling market for growth. Australia adopts technology quickly and extensively, often pushing the boundaries for innovation.
“We are also a nation that must consider how we use resources that can at times be scarce, such as water,’ says Schilpzand. ‘SambaNova’s state-of-the-art technology to power Australia’s AI push will give us the edge, efficiently.’
David Keane and SCX Non-Executive Chair Tom Amos are well known in the Australian and global business world. They were aware of SambaNova and approached the company to collaborate on their sovereign AI service for Australia.
‘Sovereignty in AI is becoming a design point as AI applications venture beyond the lab to customers with real data,’ says Schilpzand. ‘Sovereignty through the company structure and technically appealed to us and we are delighted to partner with such a great group of people.’
The Australian Government has identified AI as a critical technology for national prosperity, security and resilience, launching a National AI Plan to grow the AI industry in Australia. At the same time, the regulatory environment creates a demand for data control, clear governance structures and reliable, predictable services.
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SSX is deploying SambaNova’s high-performing, energy-efficient chips to create ‘AI factories’ across Australia.
Boosting sovereign AI capabilities and job creation
SambaNova and SCX bring industry-leading inference capabilities to Australia, opening up the opportunities of AI to local businesses of all sizes. Organisations building AI applications won’t have to rely on overseas services and can ensure their users’ data remains in Australia.
Sovereign infrastructure will also drive productivity and the competitiveness of Australian technology.
‘When the unit cost of inference drops and performance improves, businesses and government will be able to run more AI-assisted interactions per day … freeing up skilled people to focus on higher-value outcomes,’ says Keane.
Throughout Australia, Keane says this new infrastructure allows for faster upskilling and increased employment in the AI sector. SCX itself will be building ‘meaningful local teams’ as locations across the country come online, he adds.
Keane also believes the tech could indirectly create thousands of jobs.
‘We are seeing job creation in AI operations, platform engineering, security and compliance, and customer delivery, plus indirect jobs through the partners and customers building on top of those platforms.’
Driving Australia’s AI evolution
SCX’s first AI factory, in Botany, NSW, is already up and running. A second is in the works in Whyalla, South Australia, and is expected to be fully powered using renewable energy.
A phased expansion throughout Australia will see SCX implementing SambaNova’s technology into existing data centres, rather than building new facilities.
‘That approach matters because it allows us to deploy faster, with far less capital tied up in ‘building the building’ — land, construction, and oversized power and cooling plants that can be inefficient for modern inference workloads,’ Keane explains.
‘We focus investment where it creates value, through specialised compute, model operations, and the software layer.’
Austrade supports SambaNova-SCX partnership
Austrade has supported SambaNova since 2022, providing information on Australia’s high-performance computing ecosystem, assisting with site visits, and introducing company representatives to government stakeholders and local partners.
Throughout the partnership with SambaNova, and the beginnings of the Australian rollout, Keane says Austrade has also supported SCX in ‘practical, hands-on ways’, including making introductions and facilitating meetings with government and key industry players.
‘Austrade has helped deepen both SambaNova and SCX’s understanding of the local operating environment, and ‘how regulatory and legislative requirements shape sovereign AI development,’ says Keane.
A global AI outlook
Following the national rollout, Keane says SambaNova and SCX will be well placed to serve the broader Asia-Pacific region. There’s an opportunity to export a sovereign AI operating model to nations that want AI services, but don’t want to build large-scale facilities or send sensitive data offshore, he says.
‘There’s a strong precedent for this approach,’ he adds.
‘Australia has spent decades supporting the APAC region through development, infrastructure and capability-building partnerships. AI can be the next wave.’
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