iPower Signs Non-Binding 5-Year AI Services LOI Targeting Up to $21.9M Annualized

summarizeSummary

iPower's AI subsidiary received a non-binding, customer-signed LOI for a five-year AI equipment services relationship that could bill up to roughly $21.90M annualized at full build-out of 396 units — but no definitive agreement is signed and the figures are illustrative, not committed revenue.

check_boxKey Events · M&A and Partnerships · IPW

• Non-Binding AI Services LOI Signed

  Wholly owned subsidiary iPower AI LLC received a customer-signed, non-binding letter of intent for a five-year AI equipment services and management relationship covering an initial 48 AI computing units, expanding to approximately 396 units during 2027.

• Up to $21.9M Annualized at Full Build-Out

  At the proposed $4,608 per unit per month, 396 units would bill up to ~$1.82M monthly, or ~$21.90M annualized; the initial 48 units equate to ~$2.65M annualized, or $13.27M if all 48 remain billable for the full 60-month term.

• No Committed Revenue or Definitive Agreement

  The LOI is non-binding and subject to a definitive services agreement; the company states the fee illustrations are not committed revenue, backlog, profit, or 2027 revenue guidance, and depend on deployment timing and final terms.

• Scale Relative to FY2026 Results

  The $21.90M full-build-out target exceeds iPower's FY2026 revenue of $19.96M, a year in which the company reported an $11.6M net loss and a material weakness in internal controls.

auto_awesomeAnalysis · IPW · Trade & Services

iPower's new AI subsidiary has a customer-signed but non-binding LOI to manage AI computing equipment for five years. The headline number is large relative to the company: at full build-out of 396 units at $4,608 per unit per month, the target fleet would bill up to about $21.90M annualized — more than the $19.96M of revenue iPower generated in all of FY2026, a year in which it lost $11.6M and disclosed a material weakness in internal controls. That is why this matters: it is the first concrete commercial evidence behind the AI pivot the company has been pitching, and it lands while iPower is still dependent on a $30M convertible note facility that has already converted into millions of shares and while a new $50M shelf registration is working through the SEC. The catch is that nothing is committed. The LOI is non-binding, no definitive services agreement exists, and the fee illustrations assume every unit stays billable at the proposed rate for the full period — the company explicitly says these are not backlog, profit, or 2027 revenue guidance. The initial 48 units alone would be about $2.65M annualized, or $13.27M only if all 48 remain billable for the entire 60 months. Execution risk is high and the revenue is contingent on deployments that have not happened.