Soluna Cloud Secures Deal with San Francisco Compute Company to Deliver Custom AI Cloud Solutions

Rhea-AI Summary

Soluna Holdings (NASDAQ: SLNH) has signed a Master Services Agreement with San Francisco Compute Company to provide custom AI cloud solutions. Soluna will initially supply 80 Nvidia H100 GPUs, potentially scaling to 120 GPUs, from its AI cloud infrastructure to SF Compute. This partnership is the first customer engagement from Soluna's collaboration with HPE GreenLake. The deal could generate a maximum revenue of $2.466 million over one year. The agreement includes flexible usage models, robust security, and compliance with global data privacy standards. SF Compute will go live with the initial GPUs by the end of this week.

Positive

• The agreement with SF Compute could generate a maximum revenue of $2.466 million over one year.
• The partnership with SF Compute is the first customer engagement from Soluna's collaboration with HPE GreenLake.
• SF Compute will go live with the initial Nvidia H100 GPUs by the end of this week.

Negative

• None.

Insights

Financial Analyst

This deal represents a significant revenue opportunity for Soluna, with potential annual revenue of $2.466 million from the initial agreement. The partnership with SF Compute through HPE GreenLake validates Soluna's business model in the growing AI infrastructure market. The provision of 80-120 Nvidia H100 GPUs, which are currently in high demand and short supply, positions Soluna strategically in the AI cloud services sector. The variable pricing model (hourly/monthly/yearly) provides flexibility and potentially higher utilization rates. For a company with a market cap of $27.3 million, this single contract could represent nearly 9% of their current market value in annual revenue, making it a material development for investors.

Tech Expert

The strategic value of this deal extends beyond immediate revenue. The Nvidia H100 GPUs are currently the gold standard for AI computing and securing a deployment of this scale demonstrates Soluna's technical capabilities. The partnership with SF Compute to build a real-time compute trading platform is particularly noteworthy, as it positions Soluna in the emerging market of AI compute resource trading. The integration with HPE GreenLake adds enterprise credibility and could lead to additional customer acquisitions. The quick deployment timeline, with GPUs going live within the same week, shows operational readiness and could accelerate future deal closures.

ALBANY, N.Y.--(BUSINESS WIRE)-- Soluna Holdings, Inc. (“Soluna” or the “Company”), (NASDAQ: SLNH), a developer of green data centers for intensive computing applications including Bitcoin mining and AI, is proud to announce it has executed a Master Services Agreement (“MSA”) with San Francisco Compute Company (“SF Compute”), a company building the first real-time compute trading platform for AI.

Soluna Cloud Secures Deal with San Francisco Compute Company to Deliver Custom AI Cloud Solutions (Graphic: Business Wire)

Under the newly signed MSA, Soluna will provide an initial 80 Nvidia H100 GPUs and potentially scale to 120 Nvidia H100 GPUs, from its state-of-the-art AI cloud infrastructure to SF Compute, enabling advanced computational capabilities for AI-driven applications. This agreement marks a significant milestone as SF Compute is the first customer to emerge from Soluna’s strategic collaboration with Hewlett Packard Enterprise (HPE) GreenLake, a partnership designed to bring scalable, sustainable AI cloud solutions to the market.

“Our partnership with SF Compute reflects Soluna's mission to deliver sustainable and efficient AI cloud solutions tailored to enterprise needs,” said John Belizaire, CEO of Soluna. “We are excited to get this initial phase live and support these important workloads.”

Key Details of the Agreement:

1. Dedicated GPU Cluster: Soluna will provide a dedicated cluster of Nvidia H100 GPUs to SF Compute’s trading platform. The potential maximum revenue over one year will total $2.466 million.
2. Expansion Option: SF Compute may expand to more GPUs as the platform grows.
3. Variable Pricing: The agreement allows for a range of usage models for the cluster including hourly, monthly, and yearly usage of the cluster by SF Compute’s enterprise customers for the most demanding AI workloads.
4. Customizable and Secure Solutions: The services include customizable options, robust security features, and compliance with global data privacy standards to meet SF Compute’s operational and technical needs.
5. Support for Innovation: With Soluna’s advanced infrastructure, SF Compute will have the resources to develop and deploy AI applications while maintaining optimal performance and energy efficiency.

"We are thrilled to welcome Soluna as one of the anchor suppliers for our real-time compute marketplace," said Ethan Anderson, COO of San Francisco Compute Company. "Their cutting-edge infrastructure and commitment to sustainable, high-performance computing make them an ideal partner as we build a platform that allows everyone from enterprises to individuals to access the compute resources they need."

SF Compute is scheduled to go live with the initial Nvidia H100 GPUs by the end of this week.

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Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about Soluna’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and Soluna Holdings, Inc. undertakes no duty to update such information, except as required under applicable law.

In addition to figures prepared in accordance with GAAP, Soluna from time to time presents alternative non-GAAP performance measures, e.g., EBITDA, adjusted EBITDA, adjusted net profit/loss, adjusted earnings per share, free cash flow. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Alternative performance measures are not subject to GAAP or any other generally accepted accounting principle. Other companies may define these terms in different ways.

About Soluna Holdings, Inc (SLNH)

Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit solunacomputing.com. Follow us on X (formerly Twitter) at @SolunaHoldings.

About San Francisco Compute Company

San Francisco Compute Company (SF Compute) is building the first real-time compute market tailored for artificial intelligence workloads. SF Compute enables everyone from startups to enterprises to seamlessly access, trade, and deploy high-performance compute resources for their most demanding applications. SF Compute is dedicated to creating an efficient and dynamic marketplace for compute resources, unlocking flexibility and scalability, as well as real-time price discovery. For more information, visit sfcompute.com or follow us on X (formerly Twitter) at @sfcompute.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241203712823/en/

Sam Sova

Founder and CEO

SOVA

Sam@letsgosova.com

Source: Soluna Holdings, Inc.

FAQ

What recent agreement did Soluna Holdings announce?

Soluna Holdings announced a Master Services Agreement with San Francisco Compute Company to provide custom AI cloud solutions.

How many Nvidia H100 GPUs will Soluna provide to SF Compute?

Soluna will initially provide 80 Nvidia H100 GPUs, potentially scaling to 120 GPUs.

What is the potential maximum revenue from the agreement with SF Compute?

The potential maximum revenue over one year will total $2.466 million.

When will SF Compute go live with the initial GPUs?

SF Compute is scheduled to go live with the initial Nvidia H100 GPUs by the end of this week.