I Synergy Signs A$300,000 Contract for AI GPUs and Software

Strategic Partnership Formalised

I Synergy Group Limited (ASX, IS3) has taken a significant stride in its technology transformation journey by signing a formal Sale and Purchase Agreement with Treasure Global Inc. (NASDAQ, TGL), a Malaysian entity specialising in high-performance computing hardware and AI software. This agreement, valued at A$300,000, follows a non-binding Memorandum of Understanding announced just weeks earlier, signalling a deepening collaboration between the two companies.

Details of the Agreement

The contract covers the supply of AI-based GPUs and specialised AI applications designed to enhance I Synergy’s computing capabilities. Payments are structured as six monthly instalments of A$50,000, reflecting a measured approach to capital deployment. The agreement also includes customary terms such as product inspection periods, defect rectification timelines, and an 8% annual interest penalty on overdue payments, underscoring a balanced risk framework for both parties.

Intellectual Property and Operational Setup

Notably, the deal addresses intellectual property rights with clarity, each party retains pre-existing IP, while I Synergy receives a perpetual, non-exclusive license to use Treasure Global’s IP embedded in the products. This ensures operational continuity and legal certainty as I Synergy integrates the new technology. To oversee the delivery and management of this initiative, I Synergy plans to establish a wholly owned subsidiary, signalling a dedicated focus on this strategic area.

Financial and Strategic Implications

While the company states that the agreement is not expected to materially impact its financial position in the current year, the move represents a clear pivot towards enhancing its AI and high-performance computing capabilities. This aligns with I Synergy’s broader ambition to transition beyond its affiliate marketing roots and position itself as a technology-driven innovator in the evolving digital economy.

Looking Ahead

The partnership with Treasure Global could serve as a foundation for future growth, enabling I Synergy to leverage advanced AI hardware and software to develop new products or services. Investors will be watching closely for updates on the subsidiary’s formation, delivery milestones, and any subsequent financial disclosures that shed light on the commercial impact of this strategic initiative.