Core AI Announces Planned Partnership with Premier Data Center Developer to Accelerate AI Infrastructure Expansion in Malaysia

Rhea-AI Summary

Core AI (Nasdaq: CHAI) entered an MOU with Malaysian data center developer CSPM on Feb 4, 2026 to pursue retrofits and expansions of existing edge facilities into AI-ready Tier 3/4 data centers.

The collaboration targets faster deployment—operational readiness in ~12 months—and aims to serve hyperscalers or sell upgraded facilities amid a Malaysia market projected to grow from $4B (2024) to $13.6B by 2030 (CAGR 22.4%).

Positive

• MOU signed with established Malaysian developer CSPM
• Faster deployment target: operational readiness in approximately 12 months
• Large market opportunity: Malaysia data center market projected to grow to $13.6B by 2030 (CAGR 22.4%)

Negative

• MOU is non-binding; definitive agreements are still under negotiation
• Planned retrofits require upgrades to power, cooling and redundancy for AI workloads

News Market Reaction

-7.89% 6.9x vol

14 alerts

-7.89% News Effect

+25.2% Peak Tracked

-20.6% Trough Tracked

-$3M Valuation Impact

$30M Market Cap

6.9x Rel. Volume

On the day this news was published, CHAI declined 7.89%, reflecting a notable negative market reaction. Argus tracked a peak move of +25.2% during that session. Argus tracked a trough of -20.6% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $30M at that time. Trading volume was exceptionally heavy at 6.9x the daily average, suggesting significant selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Malaysia DC market 2024: $4 billion Malaysia DC market 2030: $13.6 billion Malaysia DC CAGR: 22.4% +1 more

4 metrics

Malaysia DC market 2024 $4 billion Malaysia data center market size in 2024

Malaysia DC market 2030 $13.6 billion Projected Malaysia data center market size by 2030

Malaysia DC CAGR 22.4% Projected 2024–2030 data center market CAGR in Malaysia

Planned readiness timeline 12 months Potential operational readiness after retrofitting existing facilities

Market Reality Check

Price: $1.55 Vol: Volume 34,551 vs 20-day a...

low vol

$1.55 Last Close

Volume Volume 34,551 vs 20-day average 50,129 (relative volume 0.69x) shows subdued trading ahead of this news. low

Technical Shares at $1.52 are trading below the 200-day MA of $7.47 and sit at the 52-week low, down 94.11% from the high.

Historical Context

5 past events · Latest: Dec 29 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 29	Business divestiture	Positive	-8.6%	Divestiture of Siyata Mobile to cut cash burn and simplify balance sheet.
Nov 28	Business update call	Neutral	+10.4%	Scheduled Q3 2025 update and 2026 outlook investor conference call.
Nov 21	New AI business	Positive	+12.7%	Launch of Core Digital AI-powered marketing subsidiary targeting global growth.
Nov 13	AI DC initiative	Positive	-27.1%	Announcement of $5.0B global AI data center build-out focused on Malaysia, Uzbekistan.
Oct 23	Operating update	Neutral	+11.8%	H1 2025 user growth and financial update with revenue and net loss metrics.

Pattern Detected

News tied to strategic growth (AI initiatives, new businesses, updates) has often seen positive price reactions, while some major strategic moves have triggered sharp selloffs, indicating mixed investor confidence around execution.

Recent Company History

Over the past few months, Core AI has shifted toward an AI-focused platform, highlighted by a $5.0B global AI data center initiative on Nov 13, 2025 and the launch of Core Digital on Nov 21, 2025 to expand into AI-powered digital marketing. The company reported $33.4M H1 2025 revenue and significant user scale on Oct 23, 2025. A divestiture of Siyata Mobile on Dec 29, 2025 reduced annual cash burn by $12M. Today’s Malaysia-focused partnership operationalizes earlier data center plans in that market.

Market Pulse Summary

The stock moved -7.9% in the session following this news. A negative reaction despite this partnersh...

Analysis

The stock moved -7.9% in the session following this news. A negative reaction despite this partnership would fit a pattern where large strategic steps, such as the prior $5.0B AI data center initiative, drew investor skepticism. Pre‑news, CHAI traded at its 52-week low and well below the 200-day MA, reflecting fragile sentiment. Even with Malaysia’s data center market projected to grow from $4B to $13.6B, investors may focus on execution timelines and capital intensity.

Key Terms

memorandum of understanding, tier 3, edge computing, co-location, +1 more

5 terms

memorandum of understanding regulatory

"today announced that it entered into a Memorandum of Understanding (MOU) with CSPM"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

tier 3 technical

"retrofit and expand them into Tier 3 or Tier 4 AI-capable facilities"

Tier 3 is a label for the third level in a ranked system that groups products, suppliers, risks, or regulatory categories by priority, quality, or required controls. For investors it signals where something sits in a hierarchy — often lower priority, higher risk, or subject to stricter limits — which can affect costs, reliability, regulatory burden, or potential returns; think of it as the third rung on a ladder that shapes expectations and resource needs.

edge computing technical

"identify existing edge computing data centers and retrofit and expand them"

Edge computing is a technology that processes data close to where it is generated, such as sensors or devices, rather than sending it all to a distant central location. This allows for faster decision-making and reduces delays, much like having a local office handle urgent matters instead of waiting for instructions from a main headquarters. For investors, it signifies improved efficiency and real-time insights, which can enhance the performance of technology-dependent industries.

co-location technical

"facilities are expected to be operated as co-location assets or positioned for sale"

Co-location is when a trading firm places its computer servers in the same physical data center as an exchange’s matching engine so its orders travel a much shorter distance and face far less delay. For investors, that speed advantage can mean faster trade execution and slightly better prices for firms with co-located systems, which can influence market liquidity, short-term price moves and the fairness of competition among traders.

hyperscalers technical

"Global hyperscalers are investing billions of dollars in Malaysia, including major commitments"

Hyperscalers are large technology companies that operate massive computing networks and data centers to provide cloud services, data storage, and online infrastructure at an enormous scale. They are essential to the digital economy because they enable businesses and organizations to handle vast amounts of data and run complex applications efficiently. For investors, hyperscalers represent powerful engines of growth and innovation in the technology sector.

AI-generated analysis. Not financial advice.

Marks Key Milestone in Global AI Data Center Initiative

Provides Rapid Entry into Malaysia’s High-Growth AI Data Center Market

Miami, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Core AI Holdings, Inc. (Nasdaq: CHAI) (“Core AI” or the “Company”), a global AI-focused technology and investment platform, today announced that it entered into a Memorandum of Understanding (MOU) with CSPM Resources SDN BHD (“CSPM”), one of Malaysia’s most experienced and respected data center developers, to pursue next-generation AI-ready data center opportunities in the region.

“This partnership represents an important execution milestone in our global AI data center initiative,” said Aitan Zacharin, CEO of Core AI Holdings, Inc. “Global hyperscalers are investing billions of dollars in Malaysia, including major commitments from Amazon Web Services, Oracle, Google, TikTok, and Microsoft, and partnering with CSPM positions Core AI to capitalize on the opportunities created by these investments. As hyperscalers increasingly require turnkey, AI-optimized facilities, CSPM stands out as one of the region’s most experienced developers and trusted partners. We believe that by leveraging CSPM’s technology, high level technical expertise, and deep industry and government relationships we will have an advantage in the market. Together, we see a compelling opportunity to capture a meaningful share of these multi-billion-dollar investments by repositioning existing facilities for the AI era.”

We are proceeding to draft and negotiate definitive agreements to formalize our collaboration.

Strategic Entry into a Rapidly Expanding Market

Through the partnership Core AI and CSPM plan to identify existing edge computing data centers and retrofit and expand them into Tier 3 or Tier 4 AI-capable facilities. By leveraging existing facilities, power access and network connectivity, our collaboration is designed to significantly shorten development timelines, with operational readiness potentially achieved in approximately 12 months. Once upgraded, the facilities are expected to be operated as co-location assets or positioned for sale to hyperscalers seeking fully built, AI-ready infrastructure.

Malaysia’s data center market is projected to grow from $4 billion in 2024 to $13.6 billion by 2030, representing a compounded annual growth rate of 22.4%.¹ 

Local Expertise and Structural Advantages

CSPM has long been at the center of Malaysia’s data center industry and is among a select group of developers capable of delivering complex, mission-critical facilities. The company has designed, built and supported data centers for global hyperscalers and cloud leaders and has played a foundational role in many of Malaysia’s existing edge computing and high density AI data center facilities.

CSPM’s deep integration in the local ecosystem is a key differentiator for the joint venture. The company maintains longstanding relationships with government authorities, utilities and financial institutions, supporting access to additional energy allocations and streamlined regulatory approvals.

“Malaysia has emerged as a leading destination for data center investment in Southeast Asia, driven by hyperscaler investment, strong infrastructure fundamentals and government support,” said Bryan Tan, CEO of CSPM. “As demand shifts toward AI-intensive workloads, we see the need for AI-ready data centers is growing significantly. Many existing edge facilities are strategically located but were not designed to meet the power, cooling and redundancy requirements of modern AI workloads. We believe there is a significant opportunity to upgrade and repurpose existing assets rather than pursue slower, more capital-intensive greenfield developments. We selected Core AI as a partner for its AI-focused data center strategy, and disciplined investment approach, to collaborate on pursuing AI data center opportunities in Malaysia. By combining Core AI’s strategic vision with our local expertise and relationships, we can provide fast, flexible and connected solutions while capturing a meaningful share of this high-growth market.”

About CSPM Resources SDN BHD

CSPM System Engineering SDN BHD is a leading system integrator in Malaysia, delivering cost-effective, high-quality integration solutions and exceptional service to its customers. The company specializes in environmental monitoring and power management for data centers, supporting AI-driven infrastructure, and integrates innovative, economical solutions for managing information across buildings, universities, hospitals, industries, transportation systems and data centers. With decades of experience, CSPM has become a trusted partner for hyperscalers and enterprise clients seeking reliable, mission-critical infrastructure solutions. Dow Jones, Microsoft, AT&T, Intel, and many others across financial services, government, manufacturing, telecom, and other technology sectors.

About Core AI Holdings, Inc.

Core AI Holdings, Inc. is a technology and investment platform focused on identifying, developing and scaling AI-driven businesses that leverage next-generation technologies to address large, high-growth market opportunities. Core AI’s mission is to harness artificial intelligence to create transformative, scalable solutions across multiple verticals and drive long-term shareholder value.

Through its subsidiary, Core Gaming, the company operates an established global AI-driven mobile game development and publishing business, delivering engaging entertainment experiences while enabling developers to bring player-focused apps and games to market. Since launch, Core Gaming has developed or co-developed more than 2,200 titles, generated over 800 million downloads, and built a global user base of more than 40 million players across over 140 countries.

Visit www.coregaming.co to learn more.

Core AI Investor Relations:

Brett Maas Hayden IR
chai@haydenir.com
646-536-7331

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, the Company is using forward-looking statements in this press release when it discusses its goal of achieving $300 million in full year annual revenue based on successful execution of its growth strategy, continued growth being fueled by AI-powered content development, and the ability for the Company to grow through joint venture partnerships and mergers and acquisitions. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Because these forward-looking statements and their implications are neither historical facts nor assurances of future performance and are based on Core AI's current expectations, they are subject to various risks and uncertainties and changes in circumstances that are difficult to predict and may be outside of Core AI’s control and actual results, performance, or achievements of Core AI could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission ("SEC") on April 21, 2025 and in any subsequent filings with the SEC. Except as otherwise required by law, Core AI undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

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¹ https://www.nst.com.my/business/corporate/2025/11/1314140/rm14bil-data-centre-contracts-mid-2026#google_vignette

FAQ

What did Core AI (CHAI) announce on February 4, 2026 about Malaysia data centers?

Core AI announced an MOU with CSPM to pursue retrofits and expansions of edge data centers into AI-ready Tier 3/4 facilities. According to the company, the partnership targets faster deployment and access to hyperscaler demand in Malaysia.

How quickly does Core AI (CHAI) expect upgraded Malaysian facilities to become operational?

Core AI expects operational readiness in approximately 12 months for retrofitted facilities. According to the company, leveraging existing power and connectivity is intended to shorten development timelines compared with greenfield builds.

What is the Malaysia data center market projection cited by Core AI for investors in CHAI?

The press release cites growth from $4 billion in 2024 to $13.6 billion by 2030, a 22.4% CAGR. According to the company, this projection underpins the strategic opportunity for AI-capable infrastructure investment.

Will the Core AI and CSPM partnership sell or operate upgraded data centers in Malaysia?

The partnership plans to operate upgraded facilities as co-location assets or position them for sale to hyperscalers. According to the company, both operating and sale options are contemplated depending on market demand and buyer interest.

Is the agreement between Core AI (CHAI) and CSPM legally binding now?

No, the announcement describes a Memorandum of Understanding and ongoing negotiation of definitive agreements. According to the company, they are proceeding to draft and negotiate binding contracts to formalize the collaboration.