Axe Compute buys out Duos's stake in Georgia AI cluster, extends deal to five years
Axe Compute paid off $87.8 million in debt and agreed to $42.9 million in deferred payments to Duos while stretching its customer contract for the Columbus, Georgia data center from three to five years.
Axe Compute Inc. (NASDAQ: AGPU) said it closed on September 30, 2026 an acquisition of 100% of the special purpose vehicle that owns the Axe Compute AI cluster in Columbus, Georgia, buying it from Duos Technologies Group, Inc.1
At closing, Axe Compute paid off the SPV's asset-backed loan facility of approximately $87.8 million, with no new equity issued.1 The remaining consideration is structured as a $42.9 million deferred purchase price payable to Duos in monthly installments of $715,000, with any unpaid balance due in full by the earlier of twelve months after signing and the date Axe Compute enters into a financing secured by the Georgia Cluster.1 The company said it expects to pay the deferred purchase price directly from cash flows generated by the Georgia Cluster.1
Per the release, Axe Compute expects to generate approximately $364.6 million in revenue over the life of the customer agreement, with a significant expected improvement to estimated contract gross margin.1 The underlying customer agreement was also extended from three years to five years, running through 2031 with renewal options thereafter.1
Under a related arrangement, Duos covers the facility's colocation and energy costs for the full five-year term, so the Georgia Cluster's power and facility costs are fixed for the life of the customer contract.1 Duos continues to own and operate the Georgia facility.1
The cluster itself consists of 288 servers containing 2,304 NVIDIA B300 GPUs1 located at the Duos site. In the related Form 8-K filing, Axe Compute specified that the acquired entity was Duos Edge AI – GPUaaS, LLC, a Delaware limited liability company, which was wholly-owned by Duos Technologies Group, Inc. prior to the acquisition.1 The filing added that the deferred payments run $715,000 per month for a period of 60 months, which must be repaid within the earlier of 12 months following closing of the acquisition or the date that the Company or any of its affiliates enters into a loan or other financing secured by the cluster.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.