Valuetronics invests $7.7m in AI JV with SinnetCloud HK

Valuetronics will hold 55% interest in the JV.

SGX-listed Valuetronics has formed a joint venture (JV) with SinnetCloud HK to boost the AI industry in Hong Kong.

Through its wholly-owned subsidiary, Value Match Company Limited (VML), Valuetronics will invest $7.7m in cash for a 55% interest in the JV, whilst SinnetCloud HK will hold the remaining 45%.

Trio AI, the JV, aims to deliver GPU and AI-related value-added cloud services, including data and model services on an "as-a-service" basis.

Under the JV, Valuetronics will acquire GPU-enabled servers and ancillary hardware required for the JV and lease them back to TrioAI for a term of 60 months at a rent not exceeding $60m.

TrioAI will also be responsible for the maintenance, upkeep, and associated costs of the leased equipment during the lease term, which comes with an exclusive option to VML and/or an affiliate for future equipment leasing.

The group plans to evaluate the investment's outcome before making further commitments. If deemed beneficial, it plans to seek shareholders' approval to expand its core business.