VANCOUVER, BC, July 13, 2023 /PRNewswire/ - Generative AI Solutions Corp. ("GenAI" or the "Company") (CSE: AICO) (OTC: AICOF) is pleased to announce that its wholly owned subsidiary, MAI Cloud Solutions Inc. ("MAI Cloud"), has entered into a purchase agreement dated July 12, 2023 (the "Purchase Agreement") with an arm's length third party customer headquartered in Silicon Valley (the "Customer"), pursuant to which, among other things, MAI Cloud has agreed to provide the Customer with access to approximately 350,000 hours per year of AI compute services (the "Services") using H100 graphics processing units (the "Equipment") for a period of up to seven years subject to the terms and conditions of the Purchase Agreement.
In consideration for Services, the Customer has agreed to pay MAI Cloud a fee of approximately $70,000 per month ("Revenue"). If the terms of the Purchase Agreement are completed for the full term, it is anticipated that MAI Cloud will receive an aggregate of approximately $6 million in Revenue at a gross margin of approximately $3.5 million. Approximately $850,000 in Revenue will be paid in the first 12 months of the term at a gross margin of approximately $500,000. Pursuant to the terms and conditions of the Purchase Agreement, the Customer has agreed to pay 10% of the first year's Revenue within 14 days of the Equipment being made available for use by the Customer, which is anticipated to be within the next 60 days. In accordance with the terms and conditions of the Purchase Agreement, the Customer is obligated to pay for the Services for the first 12 months (the "Initial Term") following the effective date of the Purchase Agreement (the "Effective Date"), provided that the Equipment and Services continue to meet the requirements specified in the Purchase Agreement. The Customer retains the right to extend the Initial Term for a period of up to an additional 72 months. The Purchase Agreement may be terminated after the Initial Term by the Customer upon 30 days' written notice to MAI Cloud, and by MAI Cloud upon 60 days' written notice to the Customer, or following the first 36 months after the Effective Date, by MAI Cloud upon 30 days' written notice to the Customer in the event that Equipment is not available for use for the purposes set out in the Purchase Agreement due to hardware or software breakdown.
Ryan Selby, CEO of the Company, commented "This Purchase Agreement marks a significant milestone for GenAI and reflects our commitment to generating revenue and delivering value for our shareholders. We will continue to source and develop customer relationships to further our MAI Cloud™ platform."
On Behalf of the Board,
Ryan Selby
CEO, Director, and Chairman of the Board
Generative AI Solutions Corp.
Toll-free North America: +1-833-879-7632
Outside North America: +1-406-879-7632
info@genai-solutions.com
www.genai-solutions.com
ABOUT GENERATIVE AI SOLUTIONS CORP.
GenAI is a pioneering artificial intelligence company focused on developing a vertically integrated AI solutions business through its proprietary MAI Cloud™ platform, with the development and commercialization of AI-powered tools and solutions for businesses and consumers across multiple industries. At GenAI, our mission is to harness the power of AI to create transformative products and services that benefit business and consumers across various sectors. Our team of talented AI professionals and engineers are dedicated to developing state-of-the-art AI-based solutions that have broad applicability and can be seamlessly integrated into diverse workflows. By leveraging our MAI Cloud™ platform and our expertise in machine learning, natural language processing, and data analytics, we build versatile high-performance tools that redefine efficiency, productivity, and user experience.
For more information on GenAI, please visit www.genai-solutions.com.
The Canadian Securities Exchange has not passed upon the merits of the Transaction, and has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Trading in the securities of the Company should be considered highly speculative.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.
Forward-looking information in this news release are based on certain assumptions and expected future events. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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SOURCE GENERATIVE AI SOLUTIONS CORP.
