iPower Inc. (Nasdaq: IPW) announced plans to form a dedicated artificial intelligence subsidiary, iPower AI LLC, focused on AI hardware leasing and compute resource distribution, according to a press release.

The company said it intends to acquire AI computing hardware and lease it to customers seeking AI infrastructure capacity. iPower is currently in discussions with prospective customers that have expressed preliminary, non-binding interest in leasing such equipment if and when it becomes available.

The company acknowledged that no definitive agreements have been signed for the acquisition, financing, deployment, or leasing of AI hardware, and that there is no assurance preliminary customer interest will result in completed transactions, revenue, or profit.

Potential leasing structures under consideration may include upfront lease payments by customers, subject to negotiation, credit evaluation, hardware availability, and execution of definitive agreements. iPower also said it may evaluate a compute resource distribution model to make AI computing capacity available to data centers, compute operators, or infrastructure partners.

"While no definitive customer agreements have been signed, we are seeing preliminary market interest and are evaluating potential lease structures, including structures that may provide meaningful upfront lease payments," said Lawrence Tan, Chief Executive Officer of iPower.

The subsidiary and its business strategy remain subject to market conditions, hardware availability, financing, customer demand, data center arrangements, and regulatory considerations.