Duos Technologies Group (DUOT) has completed the sale of its GPU-as-a-Service (GPUaaS) subsidiary, Duos Edge AI – GPUaaS, LLC, to Axe Compute, Inc. This strategic divestiture accelerates DUOT's transition to a pure-play AI colocation provider, focusing on owning and operating data center infrastructure rather than the compute hardware itself. The transaction removes significant debt from DUOT's balance sheet and provides capital for future colocation site development, while ensuring service continuity for existing customers.
Key Details
- Transaction: Sale of 100% of the GPUaaS subsidiary to Axe Compute, which closed on September 30, 2026.
- Financial Terms: Axe Compute repaid the subsidiary's debt of approximately $87.8 million and will pay DUOT a deferred purchase price of $42.9 million, payable in monthly installments of $715,000 over 60 months.
- Assets Divested: The sale included a cluster of 288 Supermicro B300 servers, which contain a total of 2,304 GPUs, and associated networking equipment.
- Strategic Impact: The deal allows DUOT to eliminate equipment financing obligations and redeploy capital toward developing new modular data center sites, sharpening its focus as a colocation landlord.