Company Description
Alset AI Ventures Inc. (OTC: GPUSF) is described in its public disclosures as an artificial intelligence ("AI") venture company focused on advancing innovation through strategic investment and cloud computing solutions. The company’s shares are also referenced as trading on the TSX Venture Exchange under the symbol GPUS and on the Frankfurt Stock Exchange under the symbol 1R60 (or 1R6 in certain earlier releases). According to its news releases, Alset AI positions itself as an AI-focused venture investment platform dedicated to sourcing, funding, and developing companies across the artificial intelligence value chain.
Business focus and operating model
Based on the company’s own descriptions, Alset AI’s business centers on two related activities: investing along the AI value chain and operating AI-related cloud computing infrastructure. The company states that it seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies. Within this context, Alset AI highlights its flagship cloud compute business, Lyken.AI, which it describes as 100% owned by the company.
Lyken.AI flagship cloud compute business
Alset AI’s news releases describe Lyken.AI as the company’s flagship cloud compute business focused on delivering scalable, high-performance computing infrastructure designed for artificial intelligence and machine learning workloads. According to the company, Lyken.AI combines enterprise-grade hardware with cloud-based solutions to provide developers, researchers, and enterprises with computing power to support the training and deployment of advanced AI systems.
Alset AI reports that Lyken.AI has been accepted into the Dell Technologies Canada Partner Program as a Cloud Services Provider (CSP). The company states that this status enables Lyken to integrate Dell’s enterprise-grade infrastructure, hardware, and services into its platform, and to participate in program benefits such as go-to-market support, co-marketing, demand generation, and eligibility for rebates on Dell product and solution sales. Alset AI characterizes this relationship as a milestone that supports Lyken’s ability to deliver secure, scalable, and high-performance cloud compute solutions for enterprises and developers.
Vendor ecosystem and referral relationships
Alset AI has also disclosed a referral agreement with a publicly listed global AI infrastructure company. Under this agreement, Alset AI is formally established as a referral partner, with the ability to refer prospective clients with larger-scale needs to this partner. The company states that it anticipates leveraging access to the partner’s products, services, and resources to strengthen Lyken’s network and expand its vendor ecosystem.
According to the company, this collaboration is intended to enhance Lyken’s ability to service its commercial pipeline, introduce capabilities that may appeal to large-scale enterprise and institutional customers, and provide Canadian and international clients with access to infrastructure resources described as global in scope. The agreement provides that Alset AI will identify qualified leads and facilitate presale and final sale transactions, and that the partner will compensate Alset AI for finalized sales based on a percentage of proceeds from services provided to each referred client.
Financing activities and capital structure initiatives
Alset AI’s news releases describe several financing and capital structure initiatives undertaken to support its AI and cloud compute strategy. These include:
- A non-brokered private placement offering of units, with each unit consisting of one common share and one-half of one common share purchase warrant. The company states that the net proceeds are intended to be used to accelerate commercialization of its cloud compute business, including funding customer acquisition through sales and marketing activities, advancing near-term revenue milestones, and for working capital and general corporate purposes.
- An unsecured, non-revolving term loan agreement with an insider lender in a principal amount of up to $3,000,000. Alset AI indicates that the loan is to be used for working capital and general corporate purposes, and to support the growth of Lyken.AI and its AI infrastructure strategy. In connection with each loan advance, the company has agreed, subject to TSX Venture Exchange approval, to issue non-transferable common share purchase warrants to the lender.
- A shares-for-debt transaction with certain arm’s length creditors, in which accrued and unpaid fees for consulting and additional services are to be settled through the issuance of common shares at a deemed price per share. The company states that this transaction is intended to preserve cash for operations and improve its balance sheet.
- The grant of incentive stock options and restricted share units (RSUs) under its omnibus incentive plan to directors, officers, consultants, and a marketing services provider, with vesting schedules described in the company’s releases. These equity-based awards are subject to the policies of the TSX Venture Exchange and applicable securities laws.
Marketing and investor awareness initiatives
Alset AI has disclosed a marketing services agreement with Outside The Box Capital Inc., an Ontario-based marketing firm specializing in investor awareness and digital community engagement. Under this agreement, OTB Capital is to provide digital marketing and investor awareness services, including strategic planning, social media and community engagement, distribution of company-approved materials, and featuring Alset AI in influencer-based content and highlight or Q&A videos. The company notes that this engagement is subject to TSX Venture Exchange approval and that OTB Capital and its principals act at arm’s length to Alset AI.
Ownership disclosures and early warning reports
Public early warning news releases describe acquisitions of common shares of Alset AI by an investor, Mr. Randy Gilling. These disclosures state that, following certain acquisitions completed through transactions on the TSX Venture Exchange, the acquiror beneficially owned or exercised control or direction over more than 10% of the issued and outstanding common shares on a non-diluted basis. The releases indicate that the shares are held for investment purposes, with the possibility of future increases or decreases in holdings depending on market conditions and other factors, in compliance with applicable securities laws.
Regulatory environment and listings
Alset AI’s news releases reference the TSX Venture Exchange (TSXV) in connection with approvals for financings, incentive plans, and related-party transactions. Certain offerings are described as relying on the listed issuer financing exemption under National Instrument 45-106 – Prospectus Exemptions and related blanket orders. The company also notes that certain securities have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States or to U.S. persons without registration or an applicable exemption.
Company positioning within the AI and cloud computing space
In its own commentary, Alset AI characterizes itself as an AI-focused venture investment platform that seeks exposure to both AI applications and the infrastructure that supports them. The company emphasizes the role of Lyken.AI as a cloud compute platform designed for AI and machine learning workloads, and highlights relationships such as participation in the Dell Technologies Canada Partner Program and a referral agreement with a global AI infrastructure company as important elements of its vendor and technology ecosystem.
Key points for investors and observers
- Alset AI Ventures Inc. describes itself as an AI venture company combining strategic investment with cloud computing solutions.
- The company’s flagship, wholly owned business is Lyken.AI, a cloud compute platform focused on AI and machine learning workloads.
- Alset AI reports participation in the Dell Technologies Canada Partner Program as a Cloud Services Provider, and a referral partnership with a global AI infrastructure company.
- Financing activities disclosed by the company include private placements, an unsecured term loan facility with warrant consideration, shares-for-debt settlements, and equity-based incentive awards.
- Ownership disclosures show at least one investor crossing the 10% ownership threshold, with early warning reports filed under Canadian securities regulations.
FAQs about Alset AI Ventures Inc.
- What does Alset AI Ventures Inc. do?
According to its public news releases, Alset AI Ventures Inc. is an artificial intelligence venture company that focuses on strategic investment and cloud computing solutions. It describes itself as an AI-focused venture investment platform dedicated to sourcing, funding, and developing companies across the AI value chain.
- What is Lyken.AI and how is it related to Alset AI?
Lyken.AI is described as Alset AI’s 100% owned flagship cloud compute business. The company states that Lyken.AI delivers scalable, high-performance computing infrastructure designed for AI and machine learning workloads, providing computing power for developers, researchers, and enterprises.
- How does Alset AI participate in the cloud computing ecosystem?
Alset AI reports that Lyken.AI has been accepted into the Dell Technologies Canada Partner Program as a Cloud Services Provider, allowing integration of Dell’s enterprise-grade infrastructure, hardware, and services. The company also discloses a referral agreement with a publicly listed global AI infrastructure company, under which it can refer larger-scale clients and receive compensation based on finalized sales.
- What exchanges are associated with Alset AI’s shares?
Company news releases reference Alset AI’s shares as trading on the TSX Venture Exchange under the symbol GPUS, on the OTC market under the symbol GPUSF, and on the Frankfurt Stock Exchange under symbols including 1R60 and 1R6, along with associated WKN codes.
- How is Alset AI financing its AI and cloud compute strategy?
Alset AI has disclosed a non-brokered private placement of units consisting of common shares and warrants, an unsecured non-revolving term loan facility with an insider lender that includes warrant consideration, and a shares-for-debt transaction to settle certain consulting and service fees with common shares. The company states that these financings are intended to support commercialization of its cloud compute business, customer acquisition, working capital, and its AI infrastructure strategy.
- What is the purpose of the unsecured term loan facility?
The company states that the unsecured term loan facility of up to $3,000,000 is intended to support the growth of its flagship cloud compute business, Lyken.AI, and to provide working capital and general corporate funding as it advances its AI infrastructure strategy. In connection with each advance, Alset AI has agreed, subject to TSXV approval, to issue common share purchase warrants to the lender.
- Has Alset AI implemented equity incentive programs?
Yes. Alset AI has reported granting incentive stock options and awarding restricted share units under its omnibus incentive plan to directors, officers, consultants, and a marketing services provider. These awards have defined exercise prices, vesting schedules, and are subject to TSX Venture Exchange policies and applicable securities laws.
- What marketing initiatives has Alset AI undertaken?
The company has entered into a marketing services agreement with Outside The Box Capital Inc., an Ontario-based marketing firm. Under this agreement, OTB Capital is to provide digital marketing and investor awareness services, including strategic planning, social media and community engagement, distribution of company-approved materials, and featuring Alset AI in influencer-based content and videos, subject to TSXV approval.
- Have there been any significant ownership disclosures?
Early warning news releases report that an investor, Mr. Randy Gilling, acquired additional common shares of Alset AI through transactions on the TSX Venture Exchange, resulting in beneficial ownership or control of more than 10% of the issued and outstanding common shares on a non-diluted basis. The releases state that the shares are held for investment purposes with a long-term view.
- What is Alset AI’s stated strategic objective in AI?
Alset AI describes its objective as providing investors with diversified exposure to emerging AI applications and infrastructure. Through its venture investment activities and its Lyken.AI cloud compute platform, the company indicates that it aims to participate across the AI value chain and support advancements in AI technologies.
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Short Interest History
Short interest in Alset AI Ventures (GPUSF) currently stands at 190.0 thousand shares, representing 0.1% of the float. Over the past 12 months, short interest has increased by 748.9%. This relatively low short interest suggests limited bearish sentiment.
Days to Cover History
Days to cover for Alset AI Ventures (GPUSF) currently stands at 1.9 days, up 10.5% from the previous period. This low days-to-cover ratio indicates high liquidity, allowing short sellers to quickly exit positions if needed. The days to cover has increased 89% over the past year, indicating either rising short interest or declining trading volume. The ratio has shown significant volatility over the period, ranging from 1.0 to 1.9 days.