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CLPS Incorporation Restructures R&D Architecture, Introduces AI Rainstorm Factory Development Model

Rhea-AI Impact
(High)
Rhea-AI Sentiment
(Positive)
Tags
AI

CLPS (Nasdaq: CLPS) announced a major AI-driven restructuring of its R&D architecture, centered on its proprietary AI Rainstorm Factory model. The company has deployed AI server clusters in Shanghai, Shenzhen, and Singapore with up to 15,000 TFLOPS of computing power and an internal AI platform.

The SDLC is split into six specialized AI-enabled workshops, from UI design to automated testing, operating in a specification-driven, collaborative framework. CLPS is also building an AIOps resource management system and aims to shorten R&D and delivery cycles by up to 50% while reducing costs.

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AI-generated analysis. Not financial advice.

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News Market Reaction – CLPS

-3.71%
1 alert
-3.71% News Effect

On the day this news was published, CLPS declined 3.71%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Peak computing power: 15,000 TFLOPS R&D cycle reduction target: up to 50% Workflow acceleration target: over 50% +2 more
5 metrics
Peak computing power 15,000 TFLOPS AI infrastructure across Shanghai, Shenzhen, Singapore offices
R&D cycle reduction target up to 50% Planned shortening of project R&D and delivery cycles vs traditional workflows
Workflow acceleration target over 50% Targeted overall acceleration of development workflows with AI Rainstorm Factory
Key workshops 6 workshops UI, Project Management, Business Requirements, Technical Architecture, Agile R&D, Testing
Structured phases 6 phases Collaborative Constitution through Iterate Together in SDLC framework

Market Reality Check

Price: $0.9500 Vol: Volume 9,650 vs 20-day av...
low vol
$0.9500 Last Close
Volume Volume 9,650 vs 20-day average 18,126 (relative activity 0.53x), suggesting subdued trading ahead of this AI update. low
Technical Shares at $0.9866, trading slightly above the 200-day MA of $0.97 but still 47.52% below the 52-week high.

Peers on Argus

Momentum scanner flags tech peers mixed: JZ down 41.77%, JDZG down 5.48%, while ...
1 Up 2 Down

Momentum scanner flags tech peers mixed: JZ down 41.77%, JDZG down 5.48%, while WYY is up 3.76%. Sector context also shows several information technology services peers down, indicating broader sector dynamics rather than a purely stock-specific move.

Previous AI Reports

4 past events · Latest: Mar 12 (Positive)
Same Type Pattern 4 events
Date Event Sentiment Move Catalyst
Mar 12 AI solution launch Positive +2.4% Introduced AI-driven COBOL-to-Java migration for core banking modernization.
Sep 11 AI modernization win Positive +2.9% Delivered AI-powered legacy mortgage system modernization for major Hong Kong bank.
Jun 06 AI suite unveiled Positive +2.1% Unveiled broad AI solution suite and overseas JV to expand intelligent services.
Feb 21 AI committee formed Positive -5.9% Established CLPS AI Innovation Committee to drive multi-year AI strategy.
Pattern Detected

Past AI-related announcements usually triggered small positive moves, with three events showing modest gains and one notable downside reaction.

Recent Company History

Over the past year, CLPS has steadily built its AI narrative. In February 2025, it formed the CLPS AI Innovation Committee to embed AI across development. Subsequent AI launches in June 2025, September 2025, and March 2026 highlighted legacy modernization, automated testing, and an AI-driven COBOL-to-Java migration solution. Those AI updates generally produced modest single-day gains. Today’s AI Rainstorm Factory model extends this trajectory by restructuring internal R&D around AI-enabled workflows and computing infrastructure.

Historical Comparison

+0.4% avg move · Past AI announcements (4 events) led to modest average moves of 0.39%, suggesting historically restr...
AI
+0.4%
Average Historical Move AI

Past AI announcements (4 events) led to modest average moves of 0.39%, suggesting historically restrained single-day reactions to CLPS’s AI updates.

AI news progressed from forming the AI Innovation Committee to launching solution suites and successful bank modernizations, now advancing into a full AI-centric R&D factory and computing infrastructure.

Regulatory & Risk Context

Active S-3 Shelf · $80,000,000
Shelf Active
Active S-3 Shelf Registration 2025-10-24
$80,000,000 registered capacity

CLPS has an effective Form F-3 shelf filed on 2025-10-24, registering up to US$80,000,000 of securities for working capital and general corporate purposes. Usage_count is 0, so no offerings have been made under this shelf yet.

Market Pulse Summary

This announcement details a major internal shift, with CLPS deploying 15,000 TFLOPS of computing pow...
Analysis

This announcement details a major internal shift, with CLPS deploying 15,000 TFLOPS of computing power and an AI Rainstorm Factory model aimed at cutting R&D and delivery cycles by up to 50%. Historical AI updates generally produced modest price moves, suggesting investors have treated such news cautiously. Key factors to watch include actual efficiency gains from the six-factory architecture, uptake of proprietary models, and any future use of the US$80,000,000 shelf registration.

Key Terms

sdlc, ci/cd, aiops, llms
4 terms
sdlc technical
"uses AI to transform the traditional software development lifecycle (SDLC) into a streamlined"
SDLC stands for Software Development Life Cycle, the step-by-step process a company uses to plan, build, test and deliver software products. Investors care because a well-run SDLC reduces delays, cost overruns and product failures—similar to having a clear blueprint and construction schedule for a building—while a poor SDLC increases operational risk, unexpected spending and missed revenue opportunities.
ci/cd technical
"produce high-quality code that passes CI/CD pipelines to merge into the main branch"
CI/CD stands for Continuous Integration and Continuous Delivery (or Deployment), a set of practices and tools that automate the building, testing and releasing of software so code changes reach users quickly and reliably. Think of it as an assembly line that checks each new part before it leaves the factory. For investors, CI/CD lowers the risk of costly bugs, speeds product improvements, reduces development costs, and makes a company’s road map and revenue more predictable.
aiops technical
"developing an AI for IT Operations (AIOps) resource management system"
AIOps (Artificial Intelligence for IT Operations) uses machine learning and data analysis to monitor, detect, and resolve problems in an organization’s technology systems automatically. It matters to investors because it can cut downtime and operating costs, speed up fixes, and make digital products more reliable—similar to an autopilot that notices and corrects issues before they disrupt service, which can protect revenue and reduce operational risk.
llms technical
"large language models (LLMs) tailored to the Company's unique operational ecosystem"
Large language models are advanced computer programs that read and generate human-like text by learning patterns from huge amounts of written material; think of them as digital employees that can draft reports, answer questions, summarize documents, or generate code. They matter to investors because they can change a company’s costs, speed of product development, customer service, and competitive edge — and they also create new risks and regulatory questions that can affect profits and valuation.

AI-generated analysis. Not financial advice.

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HONG KONG, June 3, 2026 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS) today announced a series of strategic initiatives aimed at driving the deep integration of artificial intelligence (AI) technology across its global business operations. In addition to scaling up investment in hardware infrastructure, the Company has executed a significant organizational restructuring. By establishing its proprietary AI Rainstorm Factory model, which uses AI to transform the traditional software development lifecycle (SDLC) into a streamlined and modular framework to automate key stages of research and development (R&D), CLPS is driving an intelligent upgrade of its R&D workflows to accelerate project delivery and optimize operational efficiency.

Building an AI Foundation to Drive R&D Efficiency

CLPS has completed the initial deployment of its AI infrastructure, including AI server clusters and related hardware resources across its Shanghai, Shenzhen, and Singapore offices. It has established a high-performance computing environment with a peak computing power of up to 15,000 teraflops (TFLOPS) and has built an internal AI service platform based on mainstream open-source models. Leveraging this centralized computing power, CLPS has already achieved measurable improvements in project R&D and delivery efficiency.

To further strengthen its AI ecosystem, the CLPS AI Innovation Committee has spearheaded the development of proprietary AI models, with plans to implement standardized, company-wide AI resource management. Once fully implemented, employees will be able to access centralized AI capabilities via a unified internal platform to streamline daily operations.

The Company aims to shorten the project R&D and delivery cycles by up to 50% compared to traditional workflows, thereby reducing development and operational costs. Moving forward, CLPS will continue to expand its investment in AI server infrastructure, systematically scale its computing power, and iterate its AI service platform to provide continuous momentum for the AI Rainstorm Factory.

Disrupting Tradition: The AI Rainstorm Factory Model Leads the Transformation

The core of this transformation lies in pivoting away from the traditional project-team-centric development model. Instead, CLPS has introduced its AI Rainstorm Factory concept, segmenting the SDLC into multiple specialized, intelligent factory workshops.

The restructured AI Rainstorm Factory architecture comprises six key workshops:

  1. UI Design Workshop: A lean, highly efficient team utilizes AI technology to generate high-quality interface designs and asset enhancements in compressed cycles, significantly scaling design capacity.

  2. Project Management Workshop: Project managers leverage AI analytics to rapidly and accurately evaluate project timelines, resource sizing, and key milestones, streamlining the project initiation phase.

  3. Business Requirements Workshop: Senior business analysts employ AI to generate requirement documentation and wireframe prototypes, eliminating tedious manual entry and efficiently producing comprehensive Functional Specification Documents (FSDs).

  4. Technical Architecture Workshop: Led by veteran software engineers, this workshop leverages AI assistance throughout system design and technology stack selection to quickly generate Technical Specification Documents (TSDs).

  5. Agile R&D Workshops: Based on the generated FSDs and TSDs, developers leverage AI to generate executable code, produce high-quality code that passes CI/CD pipelines to merge into the main branch, create unit test cases, and execute front-end/back-end integration.

  6. Automated Testing Workshops: Quality assurance engineers utilize AI to automatically generate test cases and encapsulate common scenarios into automated test scripts, achieving one-click execution and immediate feedback across a fully automated process.

The SDLC within the AI Rainstorm Factory operates as a specification-driven collaborative framework. When large, multi-functional teams develop concurrently, it fosters deep, synchronized collaboration between the various factory workshops, as well as between developers and AI. This framework operates across six structured phases: Collaborative Constitution, Specify with Stakeholders, Plan & Review, Tasks & Assignment, Implement & Code Review, and Iterate Together.

This closed-loop lifecycle spans from project initiation, requirements analysis, and architectural design to code development and final testing—achieving end-to-end, intelligent collaboration across the entire chain to maximize R&D efficiency while minimizing development costs.

Strategic Future: Building an Intelligent Management Platform

To effectively govern its rapidly expanding computing resources, CLPS is independently developing an AI for IT Operations (AIOps) resource management system. Designed to provide unified monitoring, intelligent allocation, and predictive planning of model utilization and compute consumption, the system will generate resource consumption analytics. These insights will drive data-backed decisions for future hardware procurement and ultimately be used to train specialized, enterprise-grade large language models (LLMs) tailored to the Company's unique operational ecosystem.

Mr. Andre Wang, Head of CLPS China Development Center (CDC), commented: "We are standing at a critical juncture of technological transformation. By restructuring our organizational architecture and deeply embedding AI technology, we are not just upgrading tools and workflows—we are shifting our entire mindset. We encourage every employee to evolve from an executor into an AI commander, driving innovation from a strategic level. Going forward, CLPS will continue to push the boundaries of AI, moving from automation to scalable intelligence to deliver next-generation, high-value solutions to our clients."

Mr. Raymond Lin, Chief Executive Officer of CLPS, stated: "AI is not merely another technology upgrade—it represents a profound industrial revolution. For CLPS, this is both a challenge and a historic opportunity to reshape our competitive advantage. Our decision to build an independent, controllable AI computing cluster, develop proprietary AI models, and restructure our organizational architecture is not a reactionary move, but a strategic decision rooted in long-term vision. We do not aspire to be mere consumers of AI; we aim to build deep, foundational capabilities in AI technology. Driven by our proprietary AI Rainstorm Factory R&D model, we target a comprehensive acceleration of our development workflows by over 50%. While stringently maintaining the highest standards of project delivery quality, we will significantly compress development cycles and effectively reduce overall operational costs. Concurrently, CLPS will continuously allocate resources toward AI computing power and AI model research to empower our entire workforce. This will bring to life an innovative, human-machine collaborative workplace ecosystem, and usher in a new era of deep human + AI integration."

About CLPS Incorporation

CLPS Incorporation (NASDAQ: CLPS), established in 2005 and headquartered in Hong Kong, is at the forefront of driving digital transformation and optimizing operational efficiency across industries through innovations in artificial intelligence, cloud computing, and big data. Our diverse business lines span sectors including fintech, payment and credit services, e-commerce, education and study abroad programs, and global tourism integrated with transportation services. Operating across 10 countries worldwide, with strategic regional hubs in Shanghai (mainland China), Singapore (Southeast Asia), and California (North America), and supported by subsidiaries in Japan and the UAE, we provide a robust global service network that empowers legacy industries to evolve into data-driven, intelligent ecosystems. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, InstagramLinkedIn, X, and YouTube.

Forward-Looking Statements

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's expectations of the Company's future growth, deployment in the AI technology sector, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Contact:

CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com

Cision View original content:https://www.prnewswire.com/news-releases/clps-incorporation-restructures-rd-architecture-introduces-ai-rainstorm-factory-development-model-302790021.html

SOURCE CLPS

FAQ

What is CLPS (NASDAQ: CLPS) AI Rainstorm Factory development model?

The AI Rainstorm Factory is CLPS’s proprietary model that segments the SDLC into AI-enabled workshops. According to CLPS, it uses AI to automate key R&D stages, streamline collaboration, and create a specification-driven framework spanning design, development, and testing.

How much AI computing power has CLPS deployed for its Rainstorm Factory?

CLPS reports deploying AI server clusters with peak computing power up to 15,000 TFLOPS across Shanghai, Shenzhen, and Singapore. According to CLPS, this centralized environment supports an internal AI service platform and has already improved R&D and project delivery efficiency.

How does CLPS aim to improve R&D efficiency with AI in 2026?

CLPS aims to shorten project R&D and delivery cycles by up to 50% versus traditional workflows. According to CLPS, its AI Rainstorm Factory, unified AI platform, and future AIOps system target faster development, lower operational costs, and end-to-end intelligent collaboration.

What are the six AI-enabled workshops in CLPS’s AI Rainstorm Factory?

The AI Rainstorm Factory includes UI Design, Project Management, Business Requirements, Technical Architecture, Agile R&D, and Automated Testing workshops. According to CLPS, each uses AI to generate designs, documents, code, and test scripts within a structured, collaborative SDLC framework.

What is CLPS AIOps resource management system and why is it important?

The AIOps system is designed to unify monitoring, allocate computing resources intelligently, and provide predictive planning. According to CLPS, it will generate analytics for hardware procurement and help train enterprise-grade large language models tailored to its operational ecosystem.

How does CLPS plan to use proprietary AI models and LLMs in its operations?

CLPS is developing proprietary AI models and specialized enterprise LLMs tailored to its business. According to CLPS, employees will access centralized AI capabilities via a unified internal platform to streamline daily work and support a human–AI collaborative workplace ecosystem.