Axe Compute Takes Full Ownership of Georgia AI Cluster, Significantly Increasing the Contract’s Expected Free Cash Flow and Gross Margin

Duos Technologies sold its GPU cluster SPV to Axe Compute for $87.8M in debt repayment and $715K/month for 60 months. The deal, set to close in 2026, aims to strengthen Duos' balance sheet and focus strategy. According to the company, payments may accelerate under certain conditions.

DUOS TECHNOLOGIES GROUP, INC. (DUOT) filed an SEC Form 8-K — Completion of Acquisition or Disposition of Assets. Exhibit 99.1 Duos Technologies Sells Its GPU-as-a-Service Entity to Axe Compute, Accelerating Its Shift to a Pure-Play AI Colocation Platform Sale removes approximately $98.1 million of prospective equipment financing and frees capital for new AI colocation sites Columbus custome

Axe Compute acquired Duos Edge AI – GPUaaS, an SPV with 2,304 GPUs, for $87.8M in debt repayment and $715K/month for 60 months. The deal, closed on September 30, 2026, aims to expand Axe Compute's AI compute capacity, according to an SEC filing.

Duos Technologies (DUOT) sold its GPU-as-a-Service business to Axe Compute, eliminating $98.1M in equipment debt and receiving $42.9M over 5 years. The company will continue operations in Columbus under a revised agreement, focusing on AI colocation services.

Axe Compute (AGPU) acquired its Georgia AI Cluster SPV, paid off $87.8M debt, and set a $42.9M deferred price. The customer agreement was extended to five years with fixed costs covered by Duos. The move aims to improve margins and cash flow visibility, according to the company.

Duos Technologies (DUOT) sold its GPU-as-a-Service entity to Axe Compute (AGPU) for $42.9M, removing $98.1M in equipment debt. The deal allows Duos to focus on AI colocation, with a revised 5-year customer agreement. Duos expects 2026 revenue above $50M and positive adjusted EBITDA.