09:09:57 EDT Thu 30 May 2024
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Alset Capital Inc (2)
Symbol KSUM
Shares Issued 94,530,331
Close 2024-04-24 C$ 0.38
Market Cap C$ 35,921,526
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Alset investee Cedarcross signs AI compute leasing deal

2024-04-25 09:54 ET - News Release

Mr. Morgan Good reports


Alset Capital Inc.'s 49-per-cent-owned investee company, Cedarcross International Technologies Inc. (Cedarcross Technologies), has entered into a two-year artificial intelligence computing leasing agreement with an arm's-length counterparty. The agreement is expected to generate approximately $5.5-million in total revenue, with aggregate gross margin of approximately $4.4-million over the contract's duration.

Under the terms of the agreement, Cedarcross Technologies will provide approximately 700,000 compute hours annually, totalling 1.4 million AI compute hours over the contract's duration. This agreement, with an esteemed arm's-length third party enterprise client, underscores Cedarcross Technologies' growing influence and capabilities in the realm of AI infrastructure.

The agreement outlines a structured monthly payment plan, with Cedarcross Technologies expecting to receive approximately $223,000 monthly.

Cedarcross Technologies to address surging demand for AI computing capacity

Cedarcross Technologies' mission to democratize access to high-performance AI computing is propelled by the overwhelming global demand for compute power, as highlighted in a recent interview with Sam Altman, chief executive officer of OpenAI. Mr. Altman emphasized the critical role of computing power, suggesting that compute will be the currency of the future. He stressed the need for substantial investments to increase computing capabilities, comparing the market for computing chips with that of mobile phones and predicting a significant difference in demand. Cedarcross Technologies, aligned with this vision, is strategically positioned to address this escalating demand by providing access to the world's fastest AI servers, leveraging Nvidia's H100 HGX GPUs.

Furthermore, Cedarcross Technologies' initiatives are in sync with the Canadian government's recent announcement of a $2.4-billion AI budget, with a substantial portion allocated to funding computing capabilities and technical infrastructure. This significant investment underscores the critical importance of AI computing in driving technological innovation and economic growth.

Through a strategic partnership with a major North American data centre provider boasting over 40 facilities, Cedarcross Technologies ensures seamless connectivity and reliability, supported by fibre optic connectivity, UPS backup and localized computing capabilities. By leasing compute power to enterprise clients, Cedarcross Technologies facilitates AI workload training, driving revenue and scalability while meeting market demand for computing power.

About Alset Capital Inc.

Alset Capital is an investment issuer that is focused on investment in diversified industries such as technology, health care, industrial and special situations, operating businesses through both debt and equity using cash resources or shares in its capital. The company is led by an experienced, entrepreneurial group of executives having a diverse industry and capital markets background.

Alset Capital's investment portfolio comprises 49-per-cent ownership of Cedarcross Technologies and 49-per-cent ownership of Vertex AI Ventures Inc.

About Cedarcross International Technologies Inc.

Cedarcross is an artificial intelligence cloud computing provider, with a vision of becoming one of Canada's largest AI compute providers. The company is dedicated to democratizing access to cutting-edge AI computing, offering access to the world's fastest AI servers powered by Nvidia's H100 HGX 8GPU servers. Focused on leasing compute resources to enterprise clients, Cedarcross anticipates significant revenue growth.

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