Notice of Execution of a Comprehensive Basic Agreement Between Our Consolidated Subsidiary and CEC Corporation Regarding GPU Data Center Business

Framework and Purpose of the Collaboration

Star seeds Digital Co., Ltd. (SSD) and CEC Corporation have executed a comprehensive basic agreement aimed at commercializing data center and GPU cloud-related businesses for GPU servers. To respond to the growing demand for AI infrastructure driven by the spread of generative AI, both companies will leverage their expertise to create new businesses that meet market needs. This basic agreement establishes the framework for initiating individual projects; specifics such as properties, capacity, GPU models, service launch timing, fees, and investment amounts will be negotiated and decided under individual contracts. At this time, no decision has been made regarding establishment of a joint venture or capital investment.

Outlook and Impact

SSD will expand the business centered on providing AI computing solutions, resource operations, and procurement and supply of GPU servers. CEC will provide expertise in data center design, construction, and operations, and aims to enhance cloud services and restructure/expand its data center business. If this matter materializes, it may affect consolidated results; however, the impact is currently unknown, and details such as individual contract conclusions will be disclosed in a timely manner.