Digi Power X Secures First AI Revenue Contract: $19.6M, 24-Month Deal Validates AI Factory Launch
Summary
Digi Power X Inc. announced its first AI revenue contract, a 24-month bare metal GPU rental agreement with SubQ AI valued at $19.6 million, effective May 15, 2026. This significant deal, which includes an upfront payment of approximately $2.95 million, provides crucial commercial validation for the company's strategic pivot from crypto mining to AI infrastructure and the operational launch of its NeoCloudz GPU-as-a-Service platform. Following recent capital raising efforts, including a $750 million mixed-shelf and $75 million ATM program, this contract represents a material new revenue stream, approximately $9.8 million annually, for a company that reported decreased revenue and increased losses in its last 10-K. The agreement for dedicated NVIDIA Blackwell GPUs is a strong anchor for the NeoCloudz platform and signals the company's transition to revenue generation in its new core business, with management expecting to scale relationships and acquire additional high-growth AI customers.
At the time of this announcement, DGXX was trading at $3.07 on NASDAQ in the Technology sector, with a market capitalization of approximately $216.4M. The 52-week trading range was $0.85 to $6.78. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Access Newswire.