TL;DR

  • Customer continuity: Service at Columbus continues without interruption under a revised five-year agreement.
  • Expansion focus: Redirects capital from GPU ownership toward new modular AI colocation sites.
  • Continued service: Keeps the Columbus customer supported without interruption under an enhanced five-year agreement.
  • Financial flexibility: Eliminates approximately $98.1 million in prospective GPU equipment financing, preserving capacity for site development.

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Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT) has completed the sale of its GPU-as-a-Service entity, Duos Edge AI – GPUaaS, LLC, to Axe Compute, Inc. (Nasdaq: AGPU). The transaction closed on September 30, 2026, advancing Duos’ shift toward a focused AI colocation platform.

Duos will continue to own and operate its Columbus, Georgia colocation facility, providing power, cooling, security, and managed infrastructure services. Rather than owning and financing the GPUs, the Company will lease the underlying compute capacity from Axe Compute. Its existing Columbus customer will continue receiving service without interruption under a revised five-year agreement expected to increase the revenue Duos recognizes over the contract’s life.

Under the agreement, Axe Compute acquired all outstanding equity interests in the entity holding Duos’ GPU compute cluster and associated equipment supply and financing positions. Duos will receive $42.9 million through evenly scheduled monthly payments over the next 60 months, while approximately $98.1 million in prospective equipment financing obligations have been removed.

“Selling the GPU fleet sharpens Duos into a pure-play edge data center operator,” said Chris DeAlmeida, Duos CFO. “We keep the customer and the economics, we shed roughly $98.1 million of prospective equipment debt, and we free the balance sheet to fund sites instead of servers. Our outlook for 2026 is unchanged: full year revenue above $50 million and positive adjusted EBITDA.”

The transaction allows Duos to direct capital toward developing and operating 10 to 30 MW modular colocation sites across the United States. Its broader strategy centers on owning the sites, power capacity, and infrastructure that support AI workloads, while customers bring and operate their compute equipment.

The sale reflects Duos’ continued focus on building long-lived colocation assets and reinvesting capital into new sites, campuses, and customer deployments.

To learn more about Duos Technologies Group, visit duostechnologies.com.