ARB IOT secures $45 million AI server deal in Malaysia

KUALA LUMPUR - ARB IOT Group Limited (NASDAQ:ARBB), a provider of integrated Internet of Things (IoT) solutions, has announced a significant agreement to supply artificial intelligence (AI) servers to Gajah Kapitalan Sdn Bhd (GKSB), a Malaysian enterprise technology innovator. The deal, involving 500 units of ARB-222 AI servers, is valued at approximately $45 million. The announcement comes as ARBB’s stock has shown strong momentum, with an 81% gain over the past six months, though InvestingPro analysis indicates the stock is currently trading below its Fair Value.

This new supply agreement marks a strategic move by ARB IOT to expand its footprint in the data center industry and capitalize on the increasing demand for digital assets and AI server solutions. Dato’ Sri Liew Kok Leong, CEO of ARB IOT, stated that the partnership with GKSB reinforces the company’s mission to deliver cost-effective and efficient AI server solutions to its customers.

Muhammad Badrun Almuhaimin Bin Baharon, Director of GKSB, expressed anticipation for the enhanced technological capabilities that the ARB-222 AI servers will bring. He highlighted the potential for the AI servers to provide valuable market insights and foster diverse applications across various industries.

ARB IOT Group prides itself on offering a comprehensive range of IoT systems and services, including system integration and support. The company is committed to providing turnkey solutions from design to deployment for various automated and mechatronic systems.

The announcement of the supply agreement is based on a press release statement and represents a significant milestone for ARB IOT, underscoring the growing demand for its AI products. It also reflects the confidence that GKSB has placed in ARB IOT’s ability to deliver state-of-the-art technology. While the company’s revenue was $12.3 million in the last twelve months, analysts tracked by InvestingPro forecast significant sales growth for the current year, with 11 additional exclusive insights available to subscribers.

Investors are advised to consider the forward-looking nature of this announcement, as the actual results may differ materially from those projected. Further information regarding risks and uncertainties can be found in the company’s filings with the U.S. Securities and Exchange Commission.

In other recent news, ARB IOT Group Limited has announced a collaboration to establish an AI data center experimental laboratory in Malaysia. This initiative involves a partnership with a Universiti Kebangsaan Malaysia startup and Gajah Kapitalan Sdn Bhd. The new facility will be located at the Institute of Visual Informatics at UKM and is designed to advance AI research and application development. ARB IOT Group will provide high-performance AI servers, known for their energy efficiency and scalability, to support tasks such as AI inference and deep learning. The project aligns with the Malaysian government’s efforts to enhance the nation’s AI capabilities and foster a community of data scientists and engineers. ARB IOT Group will oversee the lab’s architecture and design, while Gajah Kapitalan Sdn Bhd will handle operations and develop new AI market segments. The collaboration aims to set new sustainability standards for AI data center operations and contribute to AI innovation in the region. Additionally, plans include offering leasing services for AI computing power in Malaysia.

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