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OSS Enters into a Cooperative Research and Development Agreement with the U.S. Special Operations Command

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One Stop Systems (OSS) has entered into a Cooperative Research and Development Agreement (CRADA) with the U.S. Special Operations Command. This partnership aims to develop advanced, rugged high-performance computing solutions for AI and ML processing in edge environments. The collaboration supports the Hyper-Enabled Force (HEF) initiative, enhancing situational awareness and decision-making capabilities of Special Operations Forces (SOF).

The agreement aligns with OSS's strategy to expand offerings across the U.S. Department of Defense. Robert Kalebaugh, OSS VP of Sales, highlighted the potential to provide warfighters with sophisticated tools for improved performance in complex combat scenarios. The SOF CRADA is part of OSS's $1+ billion sales pipeline, reflecting the company's focus on enterprise-class architecture for AI/ML, sensor fusion, and autonomy applications in defense.

One Stop Systems (OSS) ha stipulato un Accordo di Ricerca e Sviluppo Cooperativo (CRADA) con il Comando delle Operazioni Speciali degli Stati Uniti. Questa partnership mira a sviluppare soluzioni di calcolo avanzate e robuste ad alte prestazioni per l'elaborazione di AI e ML in ambienti periferici. La collaborazione supporta l'iniziativa Forza Iper-Abilitata (HEF), migliorando la consapevolezza situazionale e le capacità decisionali delle Forze Operative Speciali (SOF).

L'accordo è in linea con la strategia di OSS di espandere le offerte all'interno del Dipartimento della Difesa degli Stati Uniti. Robert Kalebaugh, VP delle Vendite di OSS, ha sottolineato il potenziale di fornire ai combattenti strumenti sofisticati per migliorare le prestazioni in scenari complessi di combattimento. Il CRADA delle SOF è parte del pipeline di vendite di OSS da oltre 1 miliardo di dollari, riflettendo l'attenzione dell'azienda su un'architettura di classe enterprise per applicazioni di AI/ML, fusione di sensori e autonomia nella difesa.

One Stop Systems (OSS) ha celebrado un Acuerdo de Investigación y Desarrollo Cooperativo (CRADA) con el Comando de Operaciones Especiales de EE. UU. Esta asociación tiene como objetivo desarrollar soluciones avanzadas y robustas de computación de alto rendimiento para el procesamiento de AI y ML en entornos periféricos. La colaboración apoya la iniciativa Fuerza Hiper-Habilitada (HEF), mejorando la conciencia situacional y las capacidades de toma de decisiones de las Fuerzas Especiales (SOF).

El acuerdo se alinea con la estrategia de OSS de expandir su oferta en el Departamento de Defensa de EE. UU. Robert Kalebaugh, VP de Ventas de OSS, destacó el potencial de proporcionar a los combatientes herramientas sofisticadas para mejorar el rendimiento en escenarios de combate complejos. El CRADA de SOF es parte de la cartera de ventas de OSS de más de 1 mil millones de dólares, reflejando el enfoque de la empresa en la arquitectura de clase empresarial para aplicaciones de AI/ML, fusión de sensores y autonomía en defensa.

One Stop Systems (OSS)는 미국 특수 작전 사령부와 협력 연구 및 개발 계약 (CRADA)을 체결했습니다. 이 파트너십의 목표는 엣지 환경에서 AI 및 ML 처리를 위한 고급 견고 고성능 컴퓨팅 솔루션을 개발하는 것입니다. 이 협력은 특수 작전군(SOF)의 상황 인식 및 의사결정 능력을 강화하는 초능력화 전력 (HEF) 이니셔티브를 지원합니다.

이 계약은 OSS의 미국 국방부 내 서비스 확장 전략과 일치합니다. OSS의 영업 부사장 로버트 칼리바우는 복잡한 전투 시나리오에서 성능을 개선하기 위해 전투원에게 정교한 도구를 제공할 수 있는 잠재력을 강조했습니다. SOF CRADA는 OSS의 10억 달러 이상 판매 파이프라인의 일환으로, 방위 분야의 AI/ML, 센서 융합 및 자율성 애플리케이션을 위한 엔터프라이즈급 아키텍처에 대한 회사의 집중을 반영합니다.

One Stop Systems (OSS) a conclu un Accord de Recherche et de Développement Coopératif (CRADA) avec le Commandement des Opérations Spéciales des États-Unis. Ce partenariat a pour objectif de développer des solutions informatiques avancées et robustes à haute performance pour le traitement de l'IA et du ML dans des environnements périphériques. La collaboration soutient l'initiative Force Hyper-Enable (HEF), améliorant la conscience situationnelle et les capacités décisionnelles des Forces Spéciales (SOF).

L'accord s'inscrit dans la stratégie d'OSS d'élargir son offre au sein du Département de la Défense des États-Unis. Robert Kalebaugh, VP des Ventes chez OSS, a souligné le potentiel de fournir aux combattants des outils sophistiqués pour améliorer leurs performances dans des scénarios de combat complexes. Le CRADA SOF fait partie du pipeline de ventes d'OSS de plus d'un milliard de dollars, reflétant l'accent mis par l'entreprise sur une architecture de classe entreprise pour les applications d'IA/ML, de fusion de capteurs et d'autonomie dans la défense.

One Stop Systems (OSS) hat einen Kooperativen Forschungs- und Entwicklungsvertrag (CRADA) mit dem US-Sonderoperationenkommando abgeschlossen. Diese Partnerschaft zielt darauf ab, fortschrittliche, robuste Hochleistungscomputinglösungen für AI und ML-Verarbeitung in Edge-Umgebungen zu entwickeln. Die Zusammenarbeit unterstützt die Hyper-Enabled Force (HEF)-Initiative und verbessert die situative Wahrnehmung und Entscheidungsfähigkeiten der Special Operations Forces (SOF).

Der Vertrag steht im Einklang mit der Strategie von OSS, das Angebot im US-Verteidigungsministerium auszubauen. Robert Kalebaugh, VP für Vertrieb bei OSS, hob das Potenzial hervor, den Soldaten ausgeklügelte Werkzeuge zur Verbesserung der Leistung in komplexen Kampfszenarien zur Verfügung zu stellen. Der SOF CRADA ist Teil von OSSs Verkaufspipeline von über 1 Milliarde US-Dollar, was den Fokus des Unternehmens auf Architektur der Unternehmensklasse für AI/ML, Sensorfusion und Autonomie-Anwendungen im Verteidigungsbereich widerspiegelt.

Positive
  • Entered into a strategic partnership with U.S. Special Operations Command
  • Aligns with company's strategy to expand offerings across U.S. Department of Defense
  • Part of a $1+ billion sales pipeline
  • Potential for increased adoption of OSS's enterprise-class architecture in defense applications
Negative
  • None.

Insights

This partnership marks a significant milestone for OSS in the defense sector. The CRADA with U.S. Special Operations Command positions OSS at the forefront of developing mission-critical AI/ML solutions for edge computing in harsh environments. This aligns perfectly with the growing trend of AI-enabled warfare and the military's push for technological superiority.

The focus on the Hyper-Enabled Force initiative suggests a long-term commitment from the military, potentially leading to substantial contracts for OSS. However, investors should note that CRADAs don't guarantee future orders. The $1+ billion sales pipeline mentioned is promising, but actual revenue realization may take time and face competition.

Overall, this partnership enhances OSS's credibility in the defense sector and could open doors to collaborations with other branches of the armed forces, potentially driving future growth and diversification of OSS's customer base.

OSS's collaboration with SOF represents a cutting-edge application of AI and ML in edge computing. The challenge of processing vast amounts of data in rugged environments aligns with the broader industry trend of pushing compute power to the edge. This partnership could lead to significant advancements in portable, high-performance computing.

The focus on cognitive dominance through AI/ML is particularly noteworthy. It suggests that OSS's solutions will need to deliver real-time processing capabilities under extreme conditions - a technically challenging but potentially lucrative niche. Success here could position OSS as a leader in ruggedized AI systems, with applications beyond military use, such as in industrial IoT or autonomous vehicles in harsh environments.

Investors should watch for technological breakthroughs and potential spin-off commercial applications resulting from this collaboration, as these could significantly impact OSS's market position and valuation.

While the CRADA doesn't immediately impact OSS's financials, it significantly enhances the company's long-term growth prospects. The mention of a $1+ billion sales pipeline is eye-catching, but investors should approach this figure cautiously. It likely represents potential opportunities rather than confirmed orders.

This partnership could lead to increased R&D spending in the short term, potentially impacting profitability. However, if successful, it could result in high-margin, long-term contracts with the Department of Defense and other government agencies. The defense sector often provides stable, multi-year contracts, which could improve OSS's revenue predictability.

Investors should monitor OSS's order backlog and any announcements of contract wins stemming from this collaboration. Additionally, keep an eye on the company's gross margins, as specialized military contracts often command premium pricing.

Partnership to enhance cognitive dominance in support of Hyper Enabled Force mission objectives through development efforts of rugged edge AI/ML compute solutions

Agreement aligns with OSS’ strategy to expand offerings and establish embedded relationships across the U.S. Department of Defense

ESCONDIDO, Calif., Sept. 12, 2024 (GLOBE NEWSWIRE) -- One Stop Systems, Inc. (OSS or the Company) (Nasdaq: OSS), a leader in rugged Enterprise Class compute for artificial intelligence (AI), machine learning (ML) and sensor processing at the edge, today announced that the Company has entered into a Cooperative Research and Development Agreement (CRADA) with U.S. Special Operations Command. The goal of this partnership is to create advanced, durable high performance computer solutions that can process vast amounts of data quickly and efficiently in the field.

The collaboration agreement between OSS and U.S. Special Operations Forces (SOF) is focused on advancing the development of cutting-edge AI and ML computing solutions designed specifically for rugged, edge environments—places where traditional computing systems may not be suitable due to extreme conditions such as harsh climates or remote locations. Solutions under development will support a strategic initiative of U.S. Special Operation Forces known as the Hyper-Enabled Force (HEF), which seeks to enhance the situational awareness, decision-making, and operational capabilities of SOF. By leveraging AI and ML at the edge, SOF aims to improve cognitive dominance—enabling troops to process information faster than their adversaries, to make more informed decisions, and to ultimately achieve mission objectives with greater precision.

“We expect that our collaboration with SOF will help provide warfighters with more sophisticated and intelligent tools to improve their performance in increasingly complex and dynamic combat scenarios, thus reinforcing their competitive advantage on the battlefield,” commented Robert Kalebaugh, OSS VP of Sales. “SOF’s role within the U.S. Department of Defense continues to expand, and we are proud to support U.S. Special Operation Forces.”

“Today’s announcement also reflects our multi-year strategy focused on expanding our offerings and establishing relationships across all branches of the U.S. Armed Forces. The SOF CRADA represents an important pillar within our $1+ billion sales pipeline, as we believe the U.S. Department of Defense will accelerate the adaptation of the types of enterprise class architecture OSS provides for AI/ML, sensor fusion and autonomy applications.  We look forward to our collaboration with the U.S. Special Forces and providing valuable input into a key Defense initiative seeking to create a significant advantage for the warfighter,” concluded Mr. Kalebaugh.

About One Stop Systems
One Stop Systems, Inc. (Nasdaq: OSS) is a leader in AI enabled solutions for the demanding 'edge'. OSS designs and manufactures Enterprise Class compute and storage products that enable rugged AI, sensor fusion and autonomous capabilities without compromise. These hardware and software platforms bring the latest data center performance to harsh and challenging applications, whether they are on land, sea or in the air.

OSS products include ruggedized servers, compute accelerators, flash storage arrays, and storage acceleration software. These specialized compact products are used across multiple industries and applications, including autonomous trucking and farming, as well as aircraft, drones, ships and vehicles within the defense industry.

OSS solutions address the entire AI workflow, from high-speed data acquisition to deep learning, training and large-scale inference, and have delivered many industry firsts for industrial OEM and government customers.

As the fastest growing segment of the multi-billion-dollar edge computing market, AI enabled solutions require-and OSS delivers-the highest level of performance in the most challenging environments without compromise.

OSS products are available directly or through global distributors. For more information, go to www.onestopsystems.com. You can also follow OSS on X, YouTube, and LinkedIn.

Forward-Looking Statements
One Stop Systems cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the Company's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by One Stop Systems or its partners that any of our plans or expectations will be achieved, including but not limited to the potential and/or the results of the Cooperative Research and Development Agreement with the U.S. Special Operations Forces, any actual revenue derived from the agreement, the U.S. Department of Defense’s future adoption of technologies or applications, and the expansion of the Company’s offerings and/or relationship with different branches of the U.S. Armed Forces. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our latest Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Media Contacts:
Robert Kalebaugh
One Stop Systems, Inc.
Tel (858) 518-6154
Email contact

Investor Relations:
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
Email contact


FAQ

What is the purpose of OSS's Cooperative Research and Development Agreement with U.S. Special Operations Command?

The CRADA aims to develop advanced, rugged high-performance computing solutions for AI and ML processing in edge environments, supporting the Hyper-Enabled Force initiative to enhance situational awareness and decision-making capabilities of Special Operations Forces.

How does the CRADA with Special Operations Command align with OSS's business strategy?

The agreement aligns with OSS's multi-year strategy to expand offerings and establish relationships across all branches of the U.S. Armed Forces, potentially increasing adoption of their enterprise-class architecture for AI/ML, sensor fusion, and autonomy applications in defense.

What is the potential market size for OSS (Nasdaq: OSS) in relation to this agreement?

The SOF CRADA is part of OSS's $1+ billion sales pipeline, indicating significant potential market opportunities within the U.S. Department of Defense for their AI/ML computing solutions.

What specific capabilities will OSS develop for U.S. Special Operations Forces?

OSS will develop rugged edge AI/ML compute solutions to enhance cognitive dominance, enabling troops to process information faster, make more informed decisions, and achieve mission objectives with greater precision in complex combat scenarios.

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