(Yicai Global) April 3 -- GCL Energy Technology, a Chinese new energy services firm, said it plans to invest CNY300 million (USD44 million) to acquire a minority stake in a provider of artificial intelligence computing services.

GCL Energy’s unit will increase the capital of Hangzhou Xinglin Technology, a high-performance cloud computing services firm, in exchange for 10 percent of the company, the Suzhou-based buyer said late yesterday.

The acquisition will benefit GCL Energy amid the rapid development of AI technology, the company said. Xinglin Technology’s computing infrastructure can provide safe, economical, and reliable computing power for training general AI models, GCL Energy pointed out.

Xinglin Technology inked a deal to invest CNY10 billion (USD1.5 billion) to build a liquid-cooled super-intelligent computing center in China's eastern Anhui province, GCL noted. According to Xinglin’s shareholders, the firm's net profits will be at least CNY1 billion (USD145.2 million) from the start of the deal until the end of 2026, GCL Energy added.

GCL Energy will also use its integrated energy management resources to provide green and low-carbon energy solutions to Hangzhou Xinglin, it noted.

Shares of GCL Energy [SHE: 002015] ended down 0.2 percent at CNY11.39 (USD1.65) today, after earlier jumping by as much as 4.9 percent to a six-week high.

Editor: Martin Kadiev