Digi Power X Inc. Secures First Major AI Revenue Contract with SubQ AI, Marking Operational Launch of NeoCloudz Platform

Key Highlights from the Material Change Report

• First AI revenue contract signed: Digi Power X Inc. has secured a 24-month, \$19.6 million bare metal GPU rental agreement with SubQ AI.
• Operational launch of NeoCloudz: This contract validates the commercial and operational launch of Digi Power X’s NeoCloudz GPU-as-a-Service platform.
• Premium NVIDIA Blackwell GPUs: The agreement covers the deployment of the latest-generation NVIDIA Blackwell GPUs, with dedicated, exclusive access for SubQ AI through Digi Power X’s Miami-based, Rated 3-engineered AI data center.
• Strong upfront cash flow: SubQ AI will make a non-refundable upfront payment of approximately \$2.95 million (15% of the total contract value).
• Growth potential: Digi Power X has already secured infrastructure capacity for up to 4,000 NVIDIA Blackwell B300 GPUs, potentially supporting up to \$120 million in annualized revenue at full utilization.
• Strategic partnership and scaling plans: Both parties anticipate expanding the relationship, with SubQ AI planning to scale to several thousand GPUs in the near future.

Detailed Analysis

Digi Power X Inc. (Nasdaq: DGXX / Cboe Canada: DGX) has announced a transformative moment for the company, entering into its first contracted AI revenue agreement with SubQ AI, a next-generation artificial intelligence company. The 24-month deal, valued at approximately \$19.6 million, becomes effective on May 15, 2026, and represents a dramatic step in Digi Power X’s strategic pivot from legacy businesses to high-growth AI infrastructure.

Contract Details and Revenue Profile

• The contract secures a fleet of the newest NVIDIA Blackwell GPUs (192 GB HBM3e) for SubQ AI’s exclusive, bare metal use, delivered via NeoCloudz, Digi Power X’s proprietary GPU-as-a-Service platform.
• The facility, located in Miami, is engineered to Rated 3 standards, featuring redundant utility feeds, N+1 UPS, and advanced cooling for high-density compute workloads.
• The agreement provides recurring monthly revenue, with invoicing payable net-15, ensuring a robust and predictable cash flow profile for Digi Power X.
• The \$2.95 million upfront payment enhances liquidity and demonstrates SubQ AI’s commitment to the partnership.

Strategic Impact and Growth Opportunity

• This contract marks the official operational commissioning of Digi Power X’s AI factory and provides critical commercial validation for the NeoCloudz platform.
• SubQ AI is positioned as the anchor customer for NeoCloudz, with intentions to scale up to several thousand GPUs in the coming quarters, potentially multiplying the revenue impact for Digi Power X.
• Digi Power X has already secured infrastructure capacity to support rapid expansion—up to 4,000 NVIDIA Blackwell B300 GPUs—representing a potential \$120 million in annualized revenue at full utilization, should SubQ and other customers fully ramp up their deployments.
• Management has signaled ongoing negotiations with additional hyperscale and frontier AI customers, suggesting further commercial updates and possibly more revenue contracts in the near future.

Management Commentary

“This agreement with SubQ AI represents a major milestone for Digi Power X – our first contracted AI revenue and the official commercial launch of our NeoCloudz bare metal GPU-as-a-Service platform. We intend to rapidly scale our relationship with SubQ AI and welcome additional high-growth AI customers onto our dedicated Blackwell fleet.”
— Alec Amar, President, Digi Power X Inc.

“Our roadmap calls for scaling to several thousand GPUs over the next few quarters as we advance our proprietary architecture, and the combination of NeoCloudz’s bare metal platform, the newest NVIDIA Blackwell silicon, and Digi Power X’s owned power and data center capacity gives us a credible runway to grow into that footprint with a single, trusted infrastructure partner.”
— Justin Dangel, CEO, SubQ AI

What Shareholders Should Know

• This is Digi Power X’s first AI revenue contract—a clear and material step in the company’s transformation, likely to attract significant investor attention and potentially impact the share price.
• The contract provides strong validation of Digi Power X’s business model and technology stack, showcasing the company’s ability to deliver state-of-the-art infrastructure to demanding AI customers.
• The deal signals potential for accelerated growth, with management indicating both the ability and intent to scale rapidly, underpinned by secured infrastructure capacity and ongoing customer discussions.
• High-quality, premium assets: The exclusive use of NVIDIA’s latest Blackwell GPUs and the vertically integrated data center model offer significant competitive advantages and margin preservation.
• Price sensitivity: The announcement of first commercial AI revenue, substantial upfront cash inflow, and a credible pathway to scaling recurring revenues is likely to be viewed as materially positive by the market and could be a catalyst for the share price.

Company Background

• Digi Power X is a Miami-based AI infrastructure company with a vertically integrated portfolio of power assets and data center capacity across Alabama, New York, and North Carolina, securing approximately 400 MW of power across its sites.
• The NeoCloudz platform delivers GPU-as-a-Service on dedicated, bare metal NVIDIA infrastructure, targeting high-growth AI customers.
• SubQ AI is an advanced artificial intelligence company focused on scalable, efficient AI training and inference through proprietary architectures.

Conclusion

This announcement is a defining moment for Digi Power X, as it transitions from building infrastructure to generating substantial, recurring AI revenues. The contract with SubQ AI not only brings immediate financial benefits but also sets the stage for rapid scaling and potentially significant further commercial wins. Investors should monitor upcoming operational and commercial updates closely, as management has indicated more deals may follow.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult with their financial advisor before making investment decisions. The information herein is based on company disclosures and contains forward-looking statements subject to risk and uncertainty. Actual results may differ materially from those projected.

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