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Alset Capital Inc. Announces C$5.5 Million Two-Year AI Compute Leasing Agreement Signed by Investee Company Cedarcross Technologies
VANCOUVER, BC / ACCESSWIRE / April 25, 2024 / Alset Capital Inc. (TSXV:KSUM)(FSE:1R60, WKN:A3...
About this update from Alset Ai Ventures Inc
[{"type":"text","content":"Alset Capital Inc. Announces C$5.5 Million Two-Year AI Compute Leasing Agreement Signed by Investee Company Cedarcross TechnologiesVANCOUVER, BC / ACCESSWIRE / April 25, 2024 / Alset Capital Inc. (TSXV:KSUM)(FSE:1R60, WKN:A3ESVQ) (\"Alset\" or the \"Company\") is pleased to announce that its 49% owned investee company, Cedarcross International Technologies Inc. (\"Cedarcross Technologies\"), has entered into a two-year AI Computing leasing agreement (the \"Agreement\"), with an arm's length counterparty. The Agreement is expected to generate approximately CAD$5.5 million in total revenue, with aggregate gross margin of approximately CAD$4.4 million over the contract's duration.Under the terms of the Agreement, Cedarcross Technologies will provide approximately 700,000 compute hours annually, totaling 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 CAD$223k monthly.Cedarcross Technologies to Address Surging Demand for AI Computing CapacityCedarcross 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, CEO of OpenAI. 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 to that of mobile phones and predicting a significant difference in demand.1 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.2 This significant investment underscores the critical importance of AI computing in driving technological in...