Nvidia AI Servers Set This Revenue Pure Play Up For Explosive Growth

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Nvidia AI Servers Set This Revenue Pure Play Up For Explosive Growth

The demand for enterprise AI is rapidly growing with the global AI market expected to reach $170 billion USD by 2029. With China pulling ou

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The demand for enterprise AI is rapidly growing with the global AI market expected to reach $170 billion USD by 2029. With China pulling out all the stops in an effort to become the de facto leader in AI development and implementation, North American enterprises need to deploy AI infrastructure as soon as possible in order to keep a top slot in the new digital world.

  • North America generated more than 36.84% of the market share in 2022.
  • The Asia Pacific market is expected to expand at the highest CAGR of 20.3% from 2023 to 2032.
  • By solution, the services segment has accounted for a market share of over 39.64% in 2022.

This isn’t just a case of increasing the traditional IT infrastructure. AI computing demands performance and scale, requiring high-performance, high-bandwidth storage and networking. It draws heavily on physical machine resources and requires a whole new mind set to build. No small task. Luckily companies like Alset Capital (TSXV:KSUM) (OTC:ALSCF) (FSE:1R60), are working to sustain our lead.

Alset Capital’s 49% owned portfolio company, Cedarcross International Technologies Inc. (“Cedarcross”) is a pure-play high-performance artificial intelligence cloud computing provider, and through Cedarcross, Alset is ready to provide the necessary infrastructure needed to keep North America’s AI ecosystem thriving. 

1) A North American AI Innovator

Alset covers the AI gamut. Its portfolio, on top of Cedarcross, also includes a 49% interest in Vertex AI Ventures, a company focused on identifying, acquiring, and licensing (IP) and providing data management services, etc.

As such, Alset has entered the AI market with a diverse multi-pronged approach: 

Cedarcross arguably creates a considerable moat for Alset because it owns and operates some of the world’s most advanced GPU hardware required for AI computations. Providing access to the underlying algorithmic power developed by Nvidia, specifically its industry-leading Nvidia H100 GPUs, Cedarcross leverages its ability to provide scalable AI resources to enterprise clients in real time, without the upfront costs and long-term maintenance of physical infrastructure. 

“The U.S. AI market size accounted for USD 103.7 billion in 2022 and is estimated to reach around USD 594 billion by 2032, growing at a CAGR of 19.1% from 2023 to 2032.Precedence Research // AI Market

2) Growing Revenue

Well on its way to becoming a significant provider of AI compute solutions, Cedarcross announced a formative deal when it entered into a two-year AI Computing leasing agreement with a revered third party enterprise client that is anticipated to generate ~$4.0 million USD in revenue with approximately 80% gross margin over the life of the contract.

Paid Right Away

Cedarcross has structured the agreement for immediate income with a monthly payment plan, culminating in an estimated gross margin of ~$3.2 million USD by the end of the two-year term, representing an 80% margin.

Not done yet

On May 16, 2024, Cedarcross inked an agreement to distribute 64 Nvidia H100 HGX 8GPU servers, generating approximately C$26 million in revenue for the company. This deal brings Cedarcross’s cumulative revenue from similar distribution agreements to about C$28 million. This follows the April 22, 2024, announcement of a deal with Cedarcross for the sale of five Nvidia H100 HGX 8GPU servers to Ceti AI, which generated approximately C$2.32 million in gross revenue for Cedarcross.

Wait, There’s More

Alset signed a deal with Ceti AI for the sale of five Nvidia H100 HGX 8GPU servers which would generate an approximate gross revenue of $1.68 million CAD for Alset.

Another Quick Financial Turnaround

Like the previous agreement, Ceti is coming up with the cash quickly. With total payment expected seven days after the servers are received and accepted by Ceti.

And something else

On May 20, 2024, investee company Vertex AI Ventures Inc. (“Vertex”) entered into a strategic AI data engineering and automation partnership with Nom Nom AI Inc. (“Nom Nom”).

Vertex is using the deal to offer superior Data Management tools to companies, significantly improving their customers’ business intelligence and ability to innovate.

By integrating Nom Nom’s patent pending data management technology, we are uniquely positioned to cultivate long-term client relationships by enhancing data quality, security and infrastructure performance.Niko Kontogiannis, Director of Vertex, commented,

3) Expanding Market Presence

Cedarcross amped up its market power through a recent AI server distribution deal with Earthmade Computer Inc., an authorized distributor of Super Micro Computer Inc. (NASDAQ:SMCI)

Super Micro Computer, Inc., is no small fish trading on the NASDAQ under the symbol SMCI. It’s a global leader covering the tech gamut, pulling in approximately $3.6 billion USD in revenue in its latest reported quarter.

With this deal, Cedarcross expands its business portfolio with another vertical on top of its current computing leasing segment. Talk about win-win.

The services segment held 39.64% share of the market, dominating in 2022 due to the convenience and scalability offered by AI as a service.Precedence Research

4) What’s in a Name

Alset seriously stepped up its game by appointing AI and tech industry heavyweights, Willy Sun and Michael Gord, to its AI Advisory Board. 

Willy Sun has a long distinguished career in AI working with tech giants such as Google and Panasonic. He was a pioneer in speech emotion recognition, setting the bar for accuracy and illustrating its vast potential to revolutionize human-computer interaction.  

Michael Gord, is a tech industry veteran, a serial entrepreneur and investor in Web 3.0. Michael’s illustrious track record includes three successful startup exits as well as four acquisitions. He has invested in over 70 portfolio companies with four of those going from seed stage to full-blown unicorns.

5) A Perfect Storm

Cutting-edge hardware and superior cloud AI solutions for enterprise clients. A rapidly expanding contract base with AI hardware hosted with a major North American data center provider boasting over 40 facilities. Deep industry relationships with key partners who have strong connections to leading suppliers and distributors such as Nvidia and Super Micro. Strategic AI service partnerships and a best-in-class AI advisory board. What’s not to like?

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AI service providers offer tailored solutions, making it easier for businesses to adopt AI technologies without extensive expertise.

Conclusion

In the end, Alset’s visionary investment strategy, portfolio company’s robust revenue models and expert leadership could not only assist in securing North America’s future in AI, but also provide significant value growth for shareholders through its diverse portfolio of investee companies.

What are you waiting for? Contact Alset Capital today and to participate in their success! Alset Capital (TSXV:KSUM) (OTC:ALSCF) (FSE:1R60)www.alsetai.com ir@alsetai.com

Article by: Financial Gambits

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