Pentanet extends tech deal with NVIDIA
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Shares in Pentanet have skyrocketed after the Perth internet and cloud-gaming company extended its exclusive distribution deal for NVIDIA's technology.
Balcatta-based Pentanet's shares were trading up 80 per cent as of 4.10pm AEDT, at 9 cents each.
The trading surge comes after Pentanet announced on the market it has signed an amendment to its alliance partner agreement with NVIDIA and its GeForce NOW technology, a US-based artificial intelligence computing company.
Under the updated agreement, Pentanet will continue to be the exclusive distributor of NVIDIA’s GeForce NOW in Australia.
Pentanet will be able to extend its exclusivity in Australia in six-month increments for $US1.5 million in GeForce NOW infrastructure.
The agreement will also formally recognise New Zealand as a GeForce NOW serviceable territory, Pentanet said.
In its ASX announcement, Pentanet said it has more than 530,000 GeForce NOW users, powered by CloudGG members, since its launch.
Pentanet managing director Stephen Cornish said the more than half a million members in the CloudGG ecosystem showed a growing appetite for cloud gaming.
“Now that we have demonstrated success with Nvidia, we are moving to a Capex deployment model more in-line with our requirements and retain a first right of refusal to continue being the sole distributor for GFN in Australia,” he said.
NVIDIA and Pentanet struck an alliance partner agreement for the latter company to be the first to bring its GeForce NOW technology to Australia in 2021.
“Pentanet has fostered a deeply engaged cloud gaming community in Australia with GeForce NOW Powered by CloudGG,” NVIDIA GeForce NOW vice president Phil Eisler said.
“Its commitment to delivering GeForce RTX 3080-level performance that elevates experiences for gamers nationwide and underscores the company’s dedication to pushes the boundaries of gaming and internet connectivity.”
Under the 2021 agreement, NVIDIA granted Pentanet 30 months of exclusivity for GeForce NOW service in Australia.