ZCITY Strategically Partners with Ezytronic to Develop and Support AI GPU Computing Rental Services

Rhea-AI Summary

ZCITY Sdn Bhd, a subsidiary of Treasure Global (NASDAQ: TGL), has announced a strategic partnership with Ezytronic Sdn Bhd to develop and support AI GPU rental services. This collaboration aims to enhance ZCITY's technological offerings and meet the growing demand for high-performance computing resources. The partnership is expected to create new revenue streams for ZCITY, leveraging the increasing adoption of AI technologies by businesses.

Ezytronic will be responsible for deployment and client support, using advanced Nvidia AI GPUs, including H200, H100, and A100 series. The partnership targets the rapidly expanding global cloud GPU market, projected to grow from USD 3.17 billion in 2023 to USD 47.24 billion by 2032, with a CAGR of 35%. This move positions ZCITY to cater to diverse industries such as healthcare, finance, and entertainment, driving innovation and operational excellence.

Positive

• Strategic partnership with Ezytronic enhances ZCITY's technological offerings.
• Expected to create new revenue streams for ZCITY.
• Leverages increasing demand for AI GPU rental services.
• Uses cutting-edge Nvidia AI GPUs (H200, H100, A100 series).
• Positioned to cater to diverse industries, including healthcare, finance, and entertainment.
• Targets a rapidly growing global cloud GPU market projected to reach USD 47.24 billion by 2032.

Negative

• Dependence on Ezytronic for deployment and client support may pose operational risks.

Insights

Tech Expert

The partnership between ZCITY and Ezytronic to develop AI GPU rental services is significant in the technology sector given the increasing demand for high-performance computing resources. With the inclusion of Nvidia’s advanced AI GPUs such as the H200, H100 and A100 series, this collaboration positions ZCITY to cater to industries like healthcare, finance and entertainment that require substantial AI and machine learning capabilities.

From a technical perspective, Nvidia's high-end GPUs are known to deliver exceptional performance in parallel processing, which is important for AI workloads. This collaboration could enable ZCITY to offer scalable and efficient solutions for businesses engaging in data-intensive tasks. Additionally, the support and deployment expertise provided by Ezytronic ensures that customers receive reliable and effective service, enhancing the value proposition of ZCITY’s offerings.

Given the projected growth of the global cloud GPU market to USD 47.24 billion by 2032 with a CAGR of 35%, this strategic move by ZCITY is well-timed to capitalize on market trends. However, it's important to monitor how quickly ZCITY can scale its services and the competitive landscape, as other players might also aim to capture market share in this rapidly expanding field.

Financial Analyst

Financially, this partnership could be a strong revenue driver for ZCITY, especially considering the robust growth projections for the global cloud GPU market. The anticipated increase from USD 3.17 billion in 2023 to USD 47.24 billion by 2032 highlights substantial market potential. The collaboration with a well-established company like Ezytronic, which serves over 3,000 SMEs, adds credibility and a ready customer base to ZCITY’s new service offering.

ZCITY's move into the AI GPU rental market could diversify its revenue streams and reduce dependency on its existing product lines. This diversification could be particularly beneficial in mitigating risks associated with market fluctuations in the technology sector. However, investors should look at the financial terms of the partnership closely to understand the cost structure and potential margins. It's also essential to consider initial capital expenditures required for acquiring and setting up the advanced Nvidia GPUs and the timeline for achieving profitability in this new venture.

KUALA LUMPUR, Malaysia, July 01, 2024 (GLOBE NEWSWIRE) -- ZCITY Sdn Bhd (“ZCITY” or the “Company”), the fully-owned subsidiary of Treasure Global Inc (NASDAQ: TGL) (“Treasure Global” or the “TGI”), a leading technology solutions provider, is pleased to announce its strategic partnership with Ezytronic Sdn Bhd (“Ezytronic”) to develop and support Artificial Intelligence (AI) Graphics Processing Unit (GPU) rental services. This collaboration represents a significant step in ZCITY’s efforts to enhance its technological offerings and meet the increasing demand for high-performance computing resources.

The partnership is expected to increase revenue streams for ZCITY by capitalizing on the rapidly growing demand for AI GPU rental services. As businesses across various industries increasingly adopt AI technologies, the need for robust and scalable computing resources is becoming more critical. ZCITY aims to leverage this trend by providing advanced GPU rental solutions that cater to the evolving needs of its clients.

Ezytronic will play a crucial role in this partnership by handling the deployment and support for clients who rent the AI GPU services, ensuring top-notch service and support, and enabling clients to effectively utilize AI technologies for their business operations. This strategic partnership enables the Company to significantly enhance its capabilities in AI GPU computing rentals, catering to the surging demand for high-performance computing resources critical for AI-driven applications across diverse industries. The collaboration includes the provision of cutting-edge Nvidia AI GPUs such as the H200, H100, and A100 series, which are highly sought after for their advanced capabilities in accelerating artificial intelligence workloads.

Ezytronic, a prominent IT solutions and services provider in Malaysia with a strong market presence, serves over 3,000 small and medium enterprises (SMEs), focusing on providing end-to-end IT solutions and services to the majority of the business segments in Malaysia. Ezytronic is dedicated to sourcing and implementing new IT solutions that adhere to customer requirements and market trends, ensuring exceptional after-sales service and maintaining a robust customer base.

The global cloud GPU market is experiencing rapid growth, driven by increasing demand for high-performance computing and the proliferation of AI and machine learning applications. According to Credence Research, the market is projected to grow from USD 3.17 billion in 2023 to a significant USD 47.24 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 35%. The expansion is further fuelled by the increase in data-intensive tasks across diverse industries including healthcare, finance, and entertainment.

“We are thrilled about this collaboration with Ezytronic, which marks the Company's strategic entry into the AI GPU rental services industry. This initiative underscores our commitment to expanding our capabilities and entering new markets with advanced technology solutions. By leveraging state-of-the-art Nvidia AI GPUs, we aim to empower businesses across industries with unparalleled computing resources, enabling them to drive innovation and achieve operational excellence,” said Mr. Carlson Thow, the CEO of Treasure Global Inc.

About Treasure Global Inc:

Treasure Global is a Malaysian solutions provider developing innovative technology platforms. Treasure Global has developed two technology solutions: the ZCITY App, a unique digital ecosystem that transforms and simplifies the e-payment experience for consumers, while simultaneously allowing them to earn rewards; and TAZTE, a digital food and beverage management system providing merchants with a one-stop management and automated solution to digitalize their businesses. Treasure Global also acts as a master franchiser in Southeast Asia for popular restaurant chains, while providing them with the TAZTE solution. As of May 5, 2024, ZCITY boasts over 2,699,216 registered users.

For more information, please visit https://treasureglobal.co.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (SEC). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

For further information, please contact:

Investor and Media Contact
ir_us@treasuregroup.co

FAQ

What is the significance of ZCITY's partnership with Ezytronic for AI GPU rental services?

The partnership aims to enhance ZCITY's technological offerings and meet the growing demand for high-performance computing resources, creating new revenue streams.

How will Ezytronic support ZCITY's AI GPU rental services?

Ezytronic will handle deployment and client support, ensuring top-notch service for businesses utilizing AI technologies.

What types of Nvidia AI GPUs will be used in ZCITY's rental services?

The services will include advanced Nvidia AI GPUs, specifically the H200, H100, and A100 series.

What is the projected growth of the global cloud GPU market?

According to Credence Research, the market is expected to grow from USD 3.17 billion in 2023 to USD 47.24 billion by 2032, with a CAGR of 35%.

How does the new partnership impact Treasure Global's stock symbol TGL?

The partnership may positively impact Treasure Global's stock (TGL) by opening new revenue streams and positioning the company in a rapidly growing market.