Duos Technologies sells GPU unit to Axe Compute for $42.9M

Duos Technologies Group (NASDAQ: DUOT) completed the sale of its GPU-as-a-Service subsidiary, Duos Edge AI – GPUaaS, LLC, to Axe Compute (NASDAQ: AGPU) on September 30, 2026, according to a press release from the Jacksonville, Florida-based company.

Under the transaction, Axe Compute acquired 100% of the equity interests in the special purpose vehicle that held Duos's GPU compute cluster and associated equipment supply and financing positions. Duos will receive $42.9 million in consideration through evenly scheduled monthly payments over 60 months.

The sale eliminates approximately $98.1 million in prospective equipment financing that Axe Compute assumed, removing the associated debt obligations and covenants from Duos's balance sheet. Following the closing, Duos will lease GPU compute capacity from Axe Compute under a capacity supply arrangement rather than owning the equipment.

Duos will continue to own and operate the colocation facility in Columbus, Georgia, providing power, cooling, security, and managed infrastructure services. The existing end customer at that site will continue to receive service without interruption under a revised five-year agreement, which the company said is expected to increase revenue recognized over the life of the contract.

"Selling the GPU fleet sharpens Duos into a pure-play edge data center operator," said CFO Chris DeAlmeida. "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 company said it is directing capital toward developing and operating 10 to 30 MW modular colocation sites across the United States. Earlier this year, Duos signed a 10 MW hyperscaler colocation agreement valued at over $111 million in July 2026, and a five-year hosting service order with Axe Compute covering 55 MW of U.S. sites with a total contract value over $500 million in August 2026.

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