Axe Compute Takes Full Ownership of Georgia AI Cluster, Significantly Increasing the Contract’s Expected Free Cash Flow and Gross Margin
Key Highlights
- ➤$87.8 million asset-backed financing retired without issuing new equity
- ➤$42.9 million deferred purchase price payable to Duos in $715,000 monthly installments
- ➤Georgia Cluster agreement extended to five years through 2031, with renewal options
- ➤Georgia Cluster expected to generate approximately $364.6 million in contract revenue
- ➤2,304 NVIDIA B300 GPUs across 288 servers now fully owned by Axe Compute
Expert Statements
Christopher Miglino, Chief Executive Officer of Axe Compute
“In another validation of our partnership with Duos, we are taking this step so we can both focus on what we do best. Duos is a world class data center builder and we are fortunate to call them a partner.”
Christopher Miglino, Chief Executive Officer of Axe Compute
“Our customer is committed for five years, our power and facility costs are covered for five years, and we own our GPUs. That alignment is expected to significantly expand the margin profile and return on this existing cluster.”
Doug Recker, Chief Executive Officer of Duos Technologies Group
“This is the right move for both companies, and our relationship with Axe Compute has never been stronger.”
Doug Recker, Chief Executive Officer of Duos Technologies Group
“It streamlines the Georgia structure so Axe Compute can focus on what it does exceptionally well, delivering AI clusters to its customers. Duos stays focused on what we do best, providing the power and infrastructure behind them, now under a five-year partnership.”
* Non-dilutive transaction retires $87.8 million in asset-backed financing with no new equity issued; Duos and Axe Compute to expedite additional SPV site developments * Axe Compute’s AI Cluster Customer Agreement Extended to Five Years PITTSBURGH, Oct. 05, 2026 (GLOBE NEWSWIRE) -- Axe Compute Inc. (NASDAQ: AGPU) today announced that it completed its acquisition from Duos Technologies Group, Inc. (“Duos”) of 100% of the special purpose vehicle (the “SPV”) that owns the Axe Compute AI cluster in Columbus, Georgia (the “Georgia Cluster”) on September 30, 2026. At closing, Axe Compute paid off the SPV’s asset-backed loan facility of approximately $87.8 million, with no new equity issued. The remaining consideration consists of a $42.9 million deferred purchase price payable to Duos in monthly installments of $715,000, with any unpaid balance due in full by the earlier of twelve months after signing and the date Axe Compute enters into a financing secured by the Georgia Cluster. Axe Compute expects to pay the deferred purchase price directly from cash flows generated by the Georgia Cluster. Axe Compute expects to generate approximately $364.6 million in revenue over the life of the customer agreement, with a significant expected improvement to estimated contract gross margin. In addition, the Georgia AI Cluster customer agreement has been extended from three years to five years, running through 2031 with renewal options thereafter.
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