r/stockmarket
Lokotech($LOKO), try to see the whole picture of what they’re building.
Lokotech ($LOKO) advances AI ASIC and data center projects, signing an LOI for an AI joint venture while retaining majority control.
- Signed LOI to commercialize AI ASIC tech via a joint venture, potentially unlocking massive subsidiary valuation.
- New data center in Norway under construction, expected to double or triple current run-rate revenue at full utilization.
- Dual-purpose ASIC architecture allows AI and Scrypt mining improvements to benefit each other.
Earlier this year I wrote about Lokotech after they completed tape-out of their dual-purpose high performance compute + AI ASIC.
Now little over two months after, several pieces are starting to fall into place.
Since tape-out the company has moved the ASIC into the manufacturing phase, started construction of a new data center site in Kautokeino, Norway, continued building out its PowerPool ecosystem, expanded Arctic Core infrastructure and announced a new AI-focused initiative through Arctic AI.
Today came what may be the most interesting development yet: Lokotech announced a non-binding Letter of Intent (LOI) with one US-based and one Canada-based company to establish a joint venture focused on commercializing the AI functionality of its ASIC technology.
The structure described would involve selling a non-controlling stake in Arctic AI while retaining control.
What caught my attention is that this isn’t a separate AI project. The AI functionality is being developed around the same ASIC architecture that was originally designed for Scrypt mining. If successful, improvements made for one market could potentially benefit the other as well.
If strategic partners were willing to invest billions into Arctic AI at some point in the future, that would effectively establish a market value for the subsidiary while Lokotech would still own the majority of it.
Link below:
https://storage.mfn.se/9c330095-6644-4d77-b431-4a687fcfd71d/lokotech-signs-letter-of-intent-with-us-and-canada-based-companies-to-commercialize-its-edge-ai-asic-technology-through-a-new-joint-venture.pdf
Yesterday we got news about construction starting on a data center site in Kautokeino, Norway. According to the company, the facility will be used both for testing new hardware and scaling hosting operations. They even stated that full utilization could increase current run-rate revenue by 100-200%.
Link below:
https://storage.mfn.se/b64f9c1a-d8a6-4dd1-b888-0e3594574afa/arctic-core-as-breaks-ground-in-kautokeino-2-mw-of-computing-capacity-expected-this-summer.pdf
The more i look into this case, the more i feel like the management isnt building a single product. The ASIC, AI initiative, hosting business, PowerPool, and data center infrastructure all appear designed to support and strengthen each other.
Im not saying any of this guarantees success.
The LOI is non binding and there’s still plenty of execution risk. But compared to where the company was a few months ago, they’ve come up with a lot of potential.
Im curious what people here think.
Some of you left great comments on my previous post . Has anyone followed similar early-stage semiconductor or infrastructure stories before? How did they play out, and what do you see as the biggest risks or opportunities here?