Alset Capital scores Nvidia GPU server distribution deal with potential $90m AI revs

Artifical Intelligence ‘picks and shovels’ play Alset Capital (KSUM.V) today announced the latest deal in its AI customer-flow, with its portfolio company Cedarcross International Technologies Inc. signing an agreement to distribute high-performance Nvidia GPU servers to Big Energy Investments Inc., operating as Ceti AI.

Nvidia (NVDA.Q), the tech hardware company driving the bulk of growth in the North American markets right now, makes the in-demand H100 HGX 8GPU servers that are needed to drive the AI revolution, and Cedarcross is in a position to distribute those to its clients, an ability not many companies can boast right now, so the initial purchase of 3 Nvidia systems worth $1.37 million is well worth bragging about.

However, the real potential lies in the agreed upon option for Ceti AI’s option to acquire up to 200 of these powerful servers, which could generate a staggering $91.7 million in revenue if exercised.

This distribution agreement represents a major milestone for Cedarcross and, frankly, a compelling opportunity for Alset Capital investors, with the former having now secured nearly $30 million in revenue year-to-date from its HPC server distribution business alone.

The gross margins on this deal are equally impressive, with Cedarcross estimated to make around 15% on the initial $1.37 million order and up to $11.78 million if Ceti AI acquires all 200 servers. With a 10% downpayment already received, Cedarcross has revenue in the door.

For investors, Alset Capital’s 49% ownership stake in Cedarcross and their exposure to Nvidia’s H100 GPUs sre a big win.

As enterprises worldwide ramp up adoption of AI, machine learning, and big data processing, the demand for HPC systems will only intensify from its existing huge demand.

Alset’s other subsidiary, Vertex, recently did a deal with Nom Nom AI, for data management tools, stated as “a strategic AI data engineering and automation partnership [..] expected to bring forth a myriad of benefits for future clients, including enhanced data observability, insights, optimization of machine performance, and real-time analytics for clients, particularly those utilizing Alset’s portfolio companies’ AI computing infrastructure.”

Interesting to note with these deals, that the companies being partnered up with aren’t small-time. Nom Nom hosts a wide range of integrations with other tech, and CETI describes itself as a token-based platform devoted to accelerating “the advancement of decentralized artificial intelligence through energy-driven infrastructure.”

Nom Nom integration list.

— Chris Parry

FULL DISCLOSURE: Equity Guru has been hired by Omni8 Communications Inc. on behalf of Alset Capital as announced in Alset’s news releases dated March 27, 2024 and May 14 2024 to prepare market awareness content for Alset.

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