Axe Compute Takes Full Ownership of Georgia AI Cluster, Significantly Increasing the Contract’s Expected Free Cash Flow and Gross Margin

Axe Compute expects cluster cash flows to fund the deferred purchase price, while the transaction involves no new equity issuance.

Rhea-AI Summary

Axe Compute (NASDAQ: AGPU) acquired full ownership of the company holding its Georgia AI cluster from Duos on September 30, 2026. At closing, it repaid approximately $87.8 million in asset-backed financing without issuing new equity. The remaining $42.9 million purchase price is payable in $715,000 monthly installments, with the unpaid balance due by the earlier of twelve months after signing or financing secured by the cluster.

The customer agreement was extended from three to five years, through 2031, with renewal options. Axe Compute expects approximately $364.6 million in lifetime contract revenue and improved estimated gross margin. Duos covers colocation and energy costs for the full term and retains ownership and operation of the facility.

7 points · 2 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFull ownership of the Georgia cluster’s holding company acquired from Duos on September 30, 2026.
• Major point. Forward-looking: it has not happened yet and may not happen.Approximately $364.6 million in revenue expected by Axe Compute over the customer agreement’s life. 2.6× market cap
• Moderate pointCustomer agreement extended from three to five years, through 2031, with renewal options thereafter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Contract free cash flow and estimated gross margin expected to improve with full cluster ownership.
• Minor pointApproximately $87.8 million in asset-backed financing repaid without issuing new equity.

2 minor points

• Minor pointColocation and energy costs covered by Duos for the full five-year term, fixing these costs.
• Minor point. Forward-looking: it has not happened yet and may not happen.Future deployments planned using committed customers, infrastructure secured for matching terms, and company-owned compute hardware.

Negative

• Major point$42.9 million deferred purchase price owed to Duos, payable in $715,000 monthly installments. 31% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Unpaid balance due by the earlier of twelve months after signing or cluster-secured financing.

Key Figures

Asset-backed loan repaid: $87.8 million Deferred purchase price: $42.9 million; $715,000 monthly Expected agreement revenue: $364.6 million +3 more

Asset-backed loan repaid

$87.8 million

Paid off at closing; no new equity issued

Deferred purchase price

$42.9 million; $715,000 monthly

Payable to Duos; unpaid balance due by the earlier of 12 months after signing or cluster-secured financing

Expected agreement revenue

$364.6 million

Company-stated expected revenue over the customer agreement life

SPV ownership acquired

100%

Axe Compute acquired the SPV that owns the Georgia Cluster

Customer agreement term

5 years, extended from 3 years

Georgia AI Cluster agreement runs through 2031, with renewal options thereafter

Georgia Cluster hardware

2,304 GPUs across 288 servers

Cluster acquired by Axe Compute

Previous AI Reports

1 past event · Latest: Aug 17

Same Type 1 event

1. Aug 17

   AI capacity agreements

   24h Move

   +28.4%

   Earlier Duos agreements included a 10 MW Georgia deployment and up to 55 MW of additional capacity.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

special purpose vehicle, asset-backed loan facility, colocation, gpus

4 terms

special purpose vehicle financial

"the special purpose vehicle (the “SPV”) that owns the Axe Compute AI cluster"

A special purpose vehicle (SPV) is a separate legal entity created to isolate financial risk or hold specific assets, much like a dedicated safe for a particular investment or project. Investors pay attention to SPVs because they can influence how risks and rewards are managed, and sometimes they are used to structure transactions more efficiently or hide certain financial details.

asset-backed loan facility financial

"paid off the SPV’s asset-backed loan facility"

A loan facility where lenders provide credit secured by specific assets—such as accounts receivable, inventory, equipment, or property—that serve as collateral and can be seized or sold if the borrower defaults. It matters to investors because the presence, size and quality of such secured borrowing affects a company’s financial flexibility, liquidity and risk profile much like a mortgage affects a homeowner’s ability to borrow against their house.

colocation technical

"Duos covers the facility’s colocation and energy costs"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

gpus technical

"2,304 NVIDIA B300 GPUs"

GPUs are specialized computer chips originally designed to draw images on screens but now widely used to speed up tasks like artificial intelligence, scientific calculations, and data analysis. For investors, GPU demand is a signal about where computing power is being deployed — rising GPU sales can boost makers of chips and the datacenters that use them, influence supply chains and prices, and indicate which companies have a performance edge, much like a restaurant gaining an advantage by hiring many fast, skilled cooks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• 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.

Under a separate agreement, Duos covers the facility’s colocation and energy costs for the full five-year term, so the Georgia Cluster’s power and facility costs are fixed for the life of the customer contract. Duos continues to own and operate the Georgia facility.

Located at Duos’ facility in Columbus, Georgia, the Georgia Cluster consists of 288 servers containing 2,304 NVIDIA B300 GPUs. This Georgia Cluster is a landmark deployment and demonstrates Axe Compute’s program for designing, deploying, owning and operating dedicated AI infrastructure for enterprise customers. Axe Compute intends to apply the same structure to future deployments under the program: a committed customer, infrastructure secured for the same term, and ownership of the compute hardware.

“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,” said 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.”

“This is the right move for both companies, and our relationship with Axe Compute has never been stronger,” said 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.”

Details of the acquisition are provided in a Current Report on Form 8-K filed by Axe Compute with the U.S. Securities and Exchange Commission.

About Axe Compute Inc.
Axe Compute Inc. (NASDAQ: AGPU) is a neocloud AI infrastructure platform built on a fundamental premise: AI innovation should not be constrained by hardware choice or availability. The company provides enterprises and AI innovators with flexibility across hardware, geography, and deployment models. Axe Compute provides the design, deployment, ownership, and operation of large-scale, dedicated AI infrastructure worldwide, supported by enterprise-grade SLAs and operational expertise. For more information, visit www.axecompute.com.

About Duos Technologies Group, Inc.
Duos Technologies Group, Inc. (NASDAQ: DUOT), headquartered in Jacksonville, Florida, provides and manages modular architecture colocation data centers and infrastructure solutions. Through its Duos Edge AI brand, the Company delivers high-performance computing infrastructure built on its proprietary, scalable Duos Modular Architecture, designed to support the high-power environments required for AI and enterprise computing. Separately, Duos Technology Solutions provides manufacturer-agnostic sourcing and fulfillment services that enable efficient deployment of data centers and IT environments. Together, these platforms position the Company to address growing demand for distributed digital infrastructure in underserved Tier 3 and Tier 4 markets. For more information, visit www.duostech.com and www.duosedge.ai.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expected benefits of the transaction and the extended customer and power and facility agreements; the expected profitability, including impacts to estimated contract gross margin, and contracted revenue of the Georgia Cluster; Axe Compute’s ability to pay or refinance the deferred purchase price, including by use of cash flows generated by the Georgia Cluster or upon its accelerated maturity; the security interest held by Duos in the Georgia Cluster pending payment of the deferred purchase price; Axe Compute’s reliance on Duos and third-party service providers for facility, power and operational services; the application of the same structure to future deployments; the availability of power and facility capacity; the timing of deployment and customer delivery of the Georgia Cluster; the commencement, timing, deployment and activation of contracted customer projects; deployment and operational capabilities; customer demand; and the company's ability to design, deploy, own and operate dedicated AI infrastructure at scale. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements. Axe Compute undertakes no obligation to update or revise forward-looking statements except as required by applicable law.

Media and Investor Relations Contact
Erin McMahon, CMO and Head of Investor Relations
ir@axecompute.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Axe Compute acquire from Duos in Georgia?

Axe Compute acquired 100% of the special purpose vehicle, a company that owns the Georgia AI cluster, on September 30, 2026. Duos continues to own and operate the Columbus facility where the cluster is located.

How will Axe Compute pay the deferred Georgia cluster purchase price?

Axe Compute expects to pay the $42.9 million deferred purchase price from cash flows generated by the Georgia Cluster. Monthly installments are $715,000, and any unpaid balance is due in full by the earlier of twelve months after signing or the date Axe Compute enters into financing secured by the cluster.