Electronics manufacturing services provider Valuetronics BN2 Holdings will invest approximately HK$172 million ($28.39 million) through its wholly-owned subsidiary to expand AI computing infrastructure that will be leased to its 55%-owned joint venture (JV), Trio AI Limited.
According to a Sept 27 bourse filing, Valuetronics will acquire an additional batch of approximately 750 MetaX graphics processing unit (GPU) chips and ancillary hardware as part of the investment. This will expand Trio AI’s computing capacity from the current 250 GPU chips to above 1,000 GPU chips.
Mainboard-listed Valuetronics announced in June that it had set up a JV with SinnetCloud HK. The latter is a wholly-owned Hong Kong subsidiary of Sinnet Cloud Co. Ltd., a GPU and AI solutions provider affiliated with the Shenzhen Stock Exchange-listed Beijing Sinnet Technology Co., Ltd.
Valuetronics says the increased GPU capacity will let Trio AI offer “premium, high-performance services”, including accelerated AI model training, real-time analytics and large-scale simulations, that can command higher pricing and profit margins.
According to the announcement, the larger capacity will allow the JV to enable generative AI uses and tailored services for AI-driven applications, including personalised recommendations and advanced cybersecurity solutions.
Ricky Tse, chairman and managing director of Valuetronics, says: “The market response to our initial investment in the 250-unit GPU computing cluster in Hong Kong has been remarkable. This deployment has garnered significant attention because MetaX GPU is developed by a leading technology company in China and we are the first one to commercially introduce it in the overseas markets. Building on this momentum, our latest investment strategically increases our capacity to over 1,000 GPU chips, establishing an industry-leading scale that further strengthens Trio AI's pioneering status in the Hong Kong market.”
See also: Valuetronics to invest HK$7.7 mil in GPU, AI cloud services JV
Tse adds that the expansion will attract high-value clients and unlock new business opportunities. “We are confident that this expansion will enable us to fully leverage the growing potential within the rapidly evolving AI landscape."
Similar to the terms of its earlier investment, this batch of additional equipment will be leased to Trio AI under the existing master equipment leasing agreement, with terms that include a lease period of 60 months from the date of delivery and installation.
The lease terms will cover the acquisition and associated costs, including an interest component, with the total cost to be funded through the group’s internal resources.
Shares in Valuetronics closed 1 cent higher, or 1.59% up, at 64 cents on Sept 27.
