FingerMotion Acquires 9.9% Stake in Lyken.AI, Entering Enterprise Computing Market

FingerMotion Inc. (NASDAQ: FNGR) has announced an agreement to acquire a 9.9% stake in Lyken AI Computing Inc., operating as Lyken.AI, from Alset AI Ventures (TSXV: GPUS; OTCQB: GPUSF; FSE: 1R60) for $500,000 in FingerMotion common stock. This transaction, subject to TSXV approval on behalf of Alset AI, signifies FingerMotion's strategic entry into the enterprise computing market and represents the first step in a broader initiative to establish a recurring-revenue enterprise compute business alongside its existing mobile data and telecommunications operations. No cash consideration is payable at closing, and Alset AI is expected to retain a 90.1% interest in Lyken.

FingerMotion intends to build an enterprise offering encompassing GPU and cloud compute capacity, secure storage, private low-latency networking, and deployment support, leveraging Lyken's previously disclosed ecosystem that includes NVIDIA, Dell Technologies Canada, and established data-center providers. The company plans to pursue enterprise compute as a distinct scalable business and may seek to increase its participation in Lyken and its underlying infrastructure over time, subject to commercial performance, capital availability, and applicable regulatory and exchange requirements.

This move is significant for FingerMotion as it diversifies beyond its core mobile payment and recharge platform solutions in China. By entering the enterprise computing sector, the company aims to tap into the growing demand for GPU and cloud compute resources, particularly in the context of AI and data-intensive applications. The partnership with Lyken.AI, which has existing relationships with major technology providers, positions FingerMotion to offer a comprehensive suite of enterprise solutions.

The acquisition aligns with FingerMotion's long-term vision of serving over 1 billion users in the China market and expanding its model to other regions. By adding enterprise compute to its portfolio, the company can leverage its existing user base and technological expertise to create new revenue streams. The recurring-revenue model of enterprise compute is particularly attractive, as it provides a stable income source that complements the transaction-based revenues from its mobile services.

FingerMotion's entry into this market comes at a time when enterprises are increasingly adopting cloud and GPU-based solutions for AI, machine learning, and other high-performance computing tasks. The company's ability to offer secure storage, low-latency networking, and deployment support could differentiate it in a competitive landscape. The involvement of NVIDIA and Dell Technologies Canada in Lyken's ecosystem underscores the credibility and potential of this venture.

The transaction is subject to regulatory approvals, including TSXV approval, and is expected to close in the near term. FingerMotion's management has expressed confidence in the strategic benefits of this acquisition, which is expected to contribute to the company's growth and diversification efforts. As the enterprise computing market continues to expand, FingerMotion's participation could position it as a key player in the industry.

For more information on this announcement, visit the full press release at https://ibn.fm/37Zjz.