Mr. Adam Ingrao reports

ALSET AI COMPLETES MAJORITY ACQUISITION OF AI CLOUD COMPUTING COMPANY CEDARCROSS TECHNOLOGIES

Further to Alset AI Ventures Inc.'s news release dated Dec. 10, 2024, the company has completed the acquisition of an aggregate approximately 26-per-cent equity stake in Cedarcross International Technologies Inc., an arms'-length private British Columbia-based AI (artificial intelligence) cloud computing company, effective Feb. 24, 2025.

With the completion of the acquisition, Alset AI now holds approximately 75-per-cent ownership of Cedarcross Technologies, strengthening its position in the AI cloud computing sector and reinforcing its commitment to advancing high-performance AI infrastructure.

Cedarcross Technologies: flagship AI infrastructure business

Cedarcross Technologies addresses the critical infrastructure challenges of the AI industry through two core business verticals:

• AI HPC leasing: Providing small to medium enterprises (SMEs) with access to advanced AI high-performance computing (HPC) infrastructure powered by Nvidia graphic processing units (GPUs), Cedarcross Technologies offers an affordable and scalable alternative to owning expensive AI hardware.
• AI HPC hardware distribution: Cedarcross Technologies partners with Earthmade Computer Corp., an authorized distributor of Super Micro Computer Inc., to deliver advanced AI GPU servers and HPC solutions tailored to the evolving demands of AI and machine learning businesses. This strategic partnership positions Cedarcross Technologies as an emerging player in the AI ecosystem, unlocking diverse revenue streams and strengthening its market presence.

The integration of Cedarcross Technologies into Alset AI's portfolio positions the company as a burgeoning leader in the AI infrastructure sector, leveraging its dual-vertical business model to capitalize on the growing demand for scalable computing solutions.

Recent momentum in AI infrastructure

The global AI infrastructure market is experiencing growth, driven by advancements in machine learning, generative AI and the rising adoption of decentralized systems. Analysts project that spending on AI hardware and infrastructure will surpass $150-billion by 2030, with high-performance GPUs playing a pivotal role in enabling AI workloads.

Recently, in January, 2025, President Donald Trump announced a private-sector investment of up to $500-billion in artificial intelligence infrastructure, known as the Stargate project. This initiative is a collaboration between OpenAI, Oracle and SoftBank, aiming to construct data centres and create over 100,000 jobs in the United States over the next four years.

"AI infrastructure is at the core of the digital transformation taking place across industries," said Adam Ingrao, chief executive officer of Alset AI Ventures. "By taking this majority stake, Cedarcross Technologies becomes our flagship AI infrastructure business, a critical foundation in our strategy. By combining scalable leasing models with hardware distribution, Cedarcross Technologies is uniquely positioned to meet the surging demand for advanced computing solutions. This acquisition is a transformative step for Alset AI and underscores our commitment to delivering long-term value to our shareholders."

Strategic outlook

With Cedarcross Technologies as its flagship business, Alset AI plans to pursue additional growth opportunities in the AI infrastructure space, including organic expansion and targeted investments. The company's leadership envisions a future where AI HPC becomes accessible and sustainable, enabling breakthroughs across industries.

Terms of the acquisition

Pursuant to the terms of the acquisition and further to its news release dated Dec. 10, 2024, Alset AI has issued 19,999,988 common shares in the capital of the company to certain non-management shareholders of Cedarcross Technologies in exchange for approximately an additional 26 per cent of the issued and outstanding shares of Cedarcross Technologies at a deemed price of 7.5 cents per consideration share for total deemed consideration of $1,499,999.10. No finder's fee is payable in connection with the acquisition. The acquisition is an arm's-length transaction. The consideration shares issued in connection with the acquisition are subject to a restricted period of fourth months and one day expiring June 25, 2025. The acquisition remains subject to final approval of the TSX Venture Exchange.

About Alset AI Ventures Inc.

Alset AI is a pioneering AI and cloud computing investment firm, committed to nurturing high-potential technology companies. Through a combination of capital, strategic advisory and cloud computing alliances, Alset AI is shaping the future of artificial intelligence and building an AI-focused venture capital platform poised for substantial growth.

About Cedarcross Technologies Inc.

Cedarcross Technologies is an artificial intelligence cloud computing provider, with a vision of becoming one of Canada's largest AI compute providers. The company is dedicated to democratizing access to advanced AI high performance computing, offering access to the world's fastest AI servers.

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