Alset Capital Inc.’s (TSXV:KSUM) (FSE:1R60, WKN:A3ESVQ) mission is to drive significant shareholder value through the acquisition and development of AI assets. Alset aims to position its investment portfolio to become the leading publicly listed owner of AI computing infrastructure. Last week Alset announced its successful listing on the Frankfurt Stock Exchange (the “FSE”) under the trading symbol “1R60”, WKN: A3ESVQ and ISIN: CA02115L2003, expanding its reach and potential shareholder base to the European market. The inclusion creates a market beyond the one made on the Toronto Stock Exchange Venture (the “TSXV”) in Canada and is an expected prelude to the company stock’s potential debut on the American OTC markets. Until then, Alset’s listing of common shares on the Frankfurt Stock Exchange (FSE) has accelerated its global expansion strategy and given access to international capital markets. Moreover, the FSE, one of the world’s largest trading centers for securities, provides Alset with enhanced liquidity and exposure to international investors, reinforcing its market presence.
The strategy is working. Interest in Alset Capital is growing, resulting from its intrinsic strength to become a key player and contributor to an Artificial Intelligence (AI) and cloud computing sector that, despite its popularity, is still in its early stages of development. Listening to analysts speak about Tesla (NASDAQ: TSLA), NVIDIA (NASDAQ: NVDA), and Advanced Micro Devices (NASDAQ: AMD), all part of the Magnificent Seven, that assessment makes sense. After all, harnessing all the potential power of AI may be a never-ending mission, and with it, ushering in a generational shift in how technology is used to produce, grow, manufacture, and create a better quality of life for global populations.
Alset Capital Leverages Key AI-Sector Assets
The latter could be the most valuable component of AI, and that’s where Alset Capital is focused. They want to help level the playing field for people and governments by democratizing access to high-performance AI computing that can assist them from a logistical, financial, and productivity perspective. That intention puts them in the right place at the right time, keeping in mind that in the dynamic landscape of artificial intelligence, where compute power is the new currency, Alset has the tools and expertise to serve as a pivotal contributor in driving the AI revolution forward.
On the technology and assets side, they leverage asset strength and inherent potential from strategic investments in Cedarcross International Technologies Inc. and Vertex AI Ventures Inc., where significant ownership interest underscores its commitment to democratizing specific parts of the AI landscape. While Alset Capital, as an investment fund issuer, has accrued a diversified portfolio spanning technology, healthcare, industrial, and special situations, its AI-specific investment is the standout, representing its 49.0% ownership stake in Cedarcross International Technologies Inc. It’s worthy of the attraction earned.
Cedarcross’s vision is to become one of Canada’s largest high-performance AI computing providers. Cedarcross’s mission is to democratize access to high-performance AI computing. Cedarcross offers access to the world’s fastest AI computing servers, heralding a new era of technological advancement. By offering access to the world’s fastest AI servers, powered by Nvidia GPUs, Cedarcross empowers enterprises with high-performance computing capabilities, exceeding 700,000 hours.
Through a strategic hosting relationship with a leading North American data center provider, boasting an extensive network of over 40+ facilities across key markets, Cedarcross ensures seamless connectivity and reliability. This partnership fortifies Cedarcross’s infrastructure with essential features such as fiber optic connectivity, UPS backup, and localized computing capabilities.
Cedarcross’s strategic approach to leasing compute resources to enterprises clients demonstrates a clear pathway to significant revenue growth. By facilitating the training of AI workloads, Cedarcross not only plans to generate cash flows but also scales its hardware infrastructure fleet to meet evolving market demand for compute. Leveraging its industry-leading partners, Cedarcross is poised to drive streamlined growth and innovation in the AI sector.
Cedarcross’s AI computing hub of 5 initial Nvidia H100 HGX servers is fully installed and operating in a Tier 3 data center. Powered by the Nvidia HGX 100 GPU servers (each of which has 8 Nvidia H100 GPUs), Cedarcross boasts GPU infrastructure that when fully delivered and installed, is expected to immediately start to generate USD ~$2 million per annum, with associated anticipated net cash inflows of USD $1.6 million per annum.
Cedarcross has the foresight and knowledge of the lead time and execution required to build AI computing hubs, extending beyond simply the acquisition of GPU servers. Over the last several months, Cedarcross has worked tirelessly to order, set up, and initiate this AI computing hub. At present, Cedarcross has five Nvidia HGX H100 GPU servers delivered and installed, which are interconnected using the Infiniti brand network. Each server is linked to eight 400GB optical modules, ensuring optimal efficiency between the servers. Cedarcross expects receipt and installation of the additional five Nvidia HGX H100 GPU servers in the coming weeks.
Well-fortified with its high-performance computing hardware, specifically Nvidia H100 HGX GPU servers, Cedarcross has positioned itself to revolutionize AI computing infrastructure. This is different from what many companies do, or better said, trying to do in the sector. That’s potentially excellent news from a company and investor perspective. Remember, most of the market high-flyers are companies in the chip segment, the engines, if you will, to power and serve the demand from the thousands of companies competing for client and investors’ attention. While there are many facets to what they want and need, one thing remains constant: AI requires massive amounts of specialized computing power.
Additionally, Vertex AI Ventures is focused on identifying and acquiring intellectual property (IP) and providing data management services. In the realm of intellectual property (IP), Vertex AI Ventures is focused on the identification and acquisition of innovative AI IP from early-stage ventures. On the Data Management front, Vertex AI Ventures pioneers in providing top-tier data management services. By leveraging the power of artificial intelligence, the company provides innovative solutions designed to streamline operations, reduce both operational and capital expenditures, and secure a competitive advantage in our increasingly data-centric world.
Capitalizing On Specialization
That’s in Cedarcross’ business wheelhouse. They provide turnkey, high-performance AI cloud computing hardware solutions to enterprise clients. That differentiation is more than good from a client services perspective; it presents a pure play investment opportunity into high-level artificial intelligence and cloud computing technology.
Keep in mind that the demand for specialized computing power, particularly GPUs developed by Nvidia, actually helps expose the critical role Cedarcross plays in advancing segments of the AI space, primarily through leasing computing power to enterprise clients and then streamlining AI training models and agent development to expedite harnessing AI’s client-specific transformative potential.
There’s more to appreciate. Cedarcross’s ownership and operation of Nvidia H100 HGX GPU servers place it in a unique position within the AI computing landscape. Scarcity and high demand for such hardware often necessitate strategic partnerships and supply chain relationships, areas where Cedarcross excels. More than excel, the Cedarcross business model is profitable, with gross margins on leasing H100 server space estimated at approximately 80% contributing to a rapid payback on hardware investments. That keeps the company growing and, most importantly, well-positioned competitively.
Industry Veterans Lead With Sector-Specific Expertise
By the way, growth is no coincidence. Alset Capital Inc.’s leadership team is led by CEO Morgan Good and supported by seasoned professionals like Roger He, and its portfolio company, Vertex AI Ventures is led by Niko Kontogiannis, who bring a wealth of experience in venture capital, finance, and technology sectors. Moreover, their collective vision aligns with industry trends highlighted by prominent figures who emphasize the pivotal role of computing power in shaping the future of technology.
In a recent interview, one of the sectors leading thought leaders shared thoughts on the future of technology, emphasizing the significance of computing power by referring to “compute” as the “currency of the future” instead of fiat or cryptocurrency, adding to his belief that “compute” will become the most valuable commodity in the world, stressing the need for substantial investments to increase computing capabilities—not a small amount, either.
TRILLIONS in funding will be needed to compete with NVIDIA and TSMC in the semiconductor manufacturing industry. Here’s the critical thing to understand: Don’t consider those wanting a piece of the sector action as new competitors entering the market; it’s quite the opposite. The interest actually shows just how substantial Nvidia’s technological advantages are regarding AI computing hardware and the potential to seize opportunities where they aren’t directly focused. While it may take decades and trillions to catch up, it exposes how significant the opportunities are for companies to capitalize on and fill the service gaps.
Working To Maximize its Opportunities
Alset Capital certainly wants to earn its share. Expediting that intention, they can utilize the capital raised from its completed and fully subscribed $6 million non-brokered private placement. That deal positions them to advance strategic initiatives and, as important in many respects, emphasizes investor confidence in the company’s direction and ability to capitalize on and maximize its potential.
It’s often said in the investment world…follow the money. In this case, it may be wise to agree, recognizing that Alset Capital Inc. has an asset arsenal to capture its share of the burgeoning AI market by leveraging its investments in Cedarcross and Vertex AI Ventures. Both can drive innovation and unlock value for shareholders. And as AI continues to permeate various industries, Alset Capital’s role as a cutting-edge AI computing infrastructure facilitator, through at least two compelling assets, makes it investment-worthy. Considering a potential near-term OTC listing, many may get that chance.
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