E2E Networks shares surged 5% on Tuesday, touching an intraday high of ₹649.65, after signing a ₹1,000 crore deal with a sovereign AI firm.

What sparked the rally was a fresh disclosure from the company. E2E Networks said it has signed a binding term sheet worth close to ₹1,000 crore to supply NVIDIA’s Blackwell cloud GPUs, along with related cloud services, to a sovereign AI company based in India.

For anyone unfamiliar with the term, Blackwell chips are NVIDIA’s newest and most powerful GPUs, built specifically for training and running large AI models.

Demand for this kind of computing power has been climbing fast as more Indian companies build their own AI systems, and E2E is positioning itself to supply that demand.

The deal isn’t a quick, one-time order either. It runs all the way to June 2029, which gives E2E years of committed business instead of a single payment.

The company also confirmed the client has no connection to its promoters or group entities, so this is a standard commercial contract with no related-party angle.

There’s a second development worth knowing about too. A day before this announcement, E2E’s board cleared a plan to raise up to ₹1,500 crore, through a route that could include a Qualified Institutional Placement, a rights issue, or a further public offer.

The company hasn’t picked a final method yet. That fundraising plan still needs shareholder approval, which is expected at the company’s Annual General Meeting on 28 September.

At 9:38 am, E2E Networks was trading at ₹644.95 on the NSE, up 4.23% for the day.

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