KIDZ AI secures $44.6M GPU deal while addressing disconnect between share price and fundamentals

KIDZ AI Issues Shareholder Letter Addressing Disconnect Between Current Share Price and Fundamentals

Previously announced 60-month GPU compute services agreement provides for approximately $44.6 million in aggregate contracted service fees over its initial term - approximately 9.7 times the Company's current market capitalization. GPU-related revenue is expected to begin in the fourth quarter of 2026. NEW YORK, July 27, 2026 (Newswire.com) - KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) ("KIDZ AI" or the "Company"), an education technology company advancing AI infrastructure and GPU compute initiatives alongside its core EdTech operations, today issued the following letter to shareholders from its Chief Executive Officer, Stephanie Luo. The letter sets out management's view of the disconnect between the Company's current trading price and its balance sheet and contracted commercial pipeline, updates shareholders on share repurchase activity, and reaffirms the expected timing of initial GPU compute revenue: Dear Fellow Shareholders, I am writing because we believe there is a significant and, in our view, unwarranted disconnect between the current trading price of KIDZ AI's shares and what this Company actually owns and has contracted to deliver. As of July 24, 2026, our shares closed at $0.4191. On that same date, based on unaudited management estimates, we held approximately $14.3 million in cash and USDC stablecoins against $0.6 million of notes payable - a net cash position of approximately $13.7 million, or approximately $1.25 per share. Put plainly: the market is valuing every dollar of cash on our balance sheet at roughly thirty-four cents, and assigning no value whatsoever to our operating business, our contracted GPU revenue or our strategic pipeline. The Numbers as We See Them Reaching this conclusion does not require shareholders to take any view on our growth prospects. On these figures, our net cash alone is worth nearly three times the entire equity value the market currently ascribes to KIDZ AI. Our Board of Directors and management team believe the current market price materially understates the Company's net cash, its contracted revenue and its long-term opportunity. Acting on That Conviction: Share Repurchases A view of this kind is worth little unless the Company is willing to act on it with its own capital. We have begun repurchasing shares in the open market under our previously authorized $2.0 million share repurchase program. Given the discount at which our shares continue to trade, I intend to ask our Board to increase that authorization by 50%, to $3.0 million. We also intend to accelerate the pace of repurchases if the trading price continues to fail to accurately reflect our financial position. Buying back stock at a substantial discount to the cash behind it is, in our view, among the most direct and accretive uses of capital available to us today, and we intend to pursue it deliberately - while preserving the liquidity required to execute on our GPU deployment and maintain our core AI education-related operations. Repurchases will remain subject to market conditions, share price and trading volume, applicable securities laws and trading window restrictions, our capital requirements and the discretion of the Board. From Positioning to Revenue: GPU Commercialization Our balance sheet gives us the flexibility to move from strategic positioning to commercial execution, and that transition is now underway. We recently announced a 60-month GPU compute services agreement with Canopy Wave that provides for approximately $44.6 million in aggregate contracted service fees over its initial term - a single revenue contract representing approximately 9.7 times the Company's current total market capitalization. Based on our current financing, procurement and deployment timetable, we expect GPU-related revenue to begin in the fourth quarter of 2026. We are also advancing infrastructure and data center relationships, evaluating commercial partnerships and joint ventures, and considering strategic transactions that may expand our compute capacity, strengthen execution and support recurring enterprise demand. Focused on Execution KIDZ AI enters this next phase with substantial liquidity, minimal debt, an active share repurchase program and a defined path to GPU revenue. Our priorities are straightforward: deploy capital responsibly, repurchase our stock while it trades at a deep discount to the cash behind it, hit measurable commercial milestones, and communicate material progress to shareholders promptly and transparently. We do not believe today's market price reflects the assets we hold or the opportunity in front of us. Our response will not be words alone - it will be disciplined capital allocation and execution against the milestones we have laid out. Thank you for your continued support and trust. Sincerely, Stephanie Luo Chief Executive Officer & Director KIDZ AI Inc. The figures presented above are approximate, unaudited and derived from internal management estimates as of July 24, 2026. These financial figures should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP. Furthermore, "net cash position" as referred to above is not a measure prepared in accordance with U.S. GAAP. See "Use of Non-GAAP Information" below. The financial figures contained herein should not be interpreted as indicative of future performance. The Company does not intend to provide similar financial figures in the future. About KIDZ AI Inc. KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) is an education technology company advancing AI infrastructure and GPU compute initiatives alongside its core EdTech operations, building capacity to serve enterprise and AI-native customers. Use of Non-GAAP Information "Net cash position" is not a financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company defines "net cash position" as cash plus USDC stablecoin holdings, less notes payable. Management believes this measure provides useful supplemental information regarding the Company's liquidity, but it should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. The figures presented are preliminary, unaudited and based on internal management estimates as of July 24, 2026; they have not been reviewed or audited by the Company's independent registered public accounting firm and are subject to change in connection with the completion of the Company's quarterly closing and review procedures. Actual results reported in the Company's periodic filings may differ. Aggregate contracted service fees under the Company's GPU compute services agreement represent gross contracted revenue over the five-year initial term before associated costs, are subject to performance by the parties, and are not a measure of profit, cash flow or recognized revenue in any period. Share Repurchase Program The share repurchase program does not obligate the Company to acquire any particular amount of Class B common stock, and the program may be modified, suspended or discontinued at any time at the Company's discretion without prior notice. Any increase in the size of the program is subject to authorization by the Company's Board of Directors, and no assurance can be given that such authorization will be obtained or implemented. Repurchases may be effected from time to time in open market transactions, in privately negotiated transactions or by other means, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 and/or in compliance with the manner, timing, price and volume conditions of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing, number and value of shares repurchased will depend on a number of factors, including the market price and trading volume of the Company's Class B common stock, general market and economic conditions, the Company's liquidity and capital requirements, applicable legal and regulatory requirements, and applicable trading window restrictions. No assurance can be given that the Company will repurchase any additional shares or that repurchases will occur at any particular pace. Forward-Looking Statement This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on KIDZ AI's current beliefs, expectations and assumptions regarding the future of KIDZ AI's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of KIDZ AI's control including, but not limited to: KIDZ AI's ability to execute its business model, including obtaining market acceptance of its products and services; KIDZ AI's ability to obtain the GPUs necessary to perform its obligations under the definitive agreement with Canopy Wave and achieve its goals and expected results; KIDZ AI's financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; KIDZ AI's ability to maintain the listing of its securities on Nasdaq; changes in KIDZ AI's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects and plans; KIDZ AI's ability to attract and retain a large number of customers; KIDZ AI's future capital requirements and sources and uses of cash; KIDZ AI's ability to attract and retain key personnel; KIDZ AI's expectations regarding its ability to obtain and maintain intellectual property protection and not infringe on the rights of others; changes in applicable laws or regulations; the possibility that KIDZ AI may be adversely affected by other economic, business, and/or competitive factors; the risk that the price of any crypto asset, many of which have historically been subject to dramatic price fluctuations and are highly volatile, could fall substantially negatively impacting KIDZ AI's financial condition and results of operations; regulatory changes related to crypto assets; and fluctuations in the price of crypto assets. These risks and uncertainties also include those risks and uncertainties indicated in KIDZ AI's filings with the SEC. KIDZ AI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statement made by KIDZ AI in this press release is based only on information currently available to KIDZ AI and speaks only as of the date on which it is made. KIDZ AI undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

KIDZ AI's Massive Move Follows New GPU Compute Deal - KIDZ AI (NASDAQ:KIDZ)

Investors appear to be reacting to the contract's size, long-term revenue potential and the planned deployment of 256 NVIDIA Blackwell B300 GPUs. The agreement adds tangible scale to KIDZ AI's expansion beyond education technology into AI infrastructure. What Is KIDZ AI's GPU Agreement? KIDZ AI's wholly owned subsidiary, Catalyst Compute LLC, plans to order and deploy the GPUs across 32 specialized nodes. Each node will include dual Intel Xeon 6776P processors, 4TB of DDR5 memory, and 800Gb/s InfiniBand connectivity. The agreement depends on Catalyst Compute placing a non-cancellable order for the GPU servers required to provide the services. Canopy Wave operates an AI inference platform focused on cost-efficient deployment of open-weight models. It supports model families including Moonshot AI, DeepSeek, Qwen and Zhipu AI. Neocloud Strategy Expands KIDZ AI said the contract supports its neocloud strategy of pairing purpose-built infrastructure with long-term enterprise demand. This approach avoids deploying computing capacity without committed customers. Management believes cost per token, throughput, latency and utilization will become increasingly important as enterprises adopt lower-cost open-weight models. "This milestone contract is an important step in KIDZ AI's evolution into a broader AI technology and infrastructure platform," CEO Stephanie Luo said. "What we believe sets our neocloud model apart is pairing next-generation computing infrastructure with long-term contracted enterprise demand - a scalable commercial foundation rather than speculative capacity, and a model we aim to repeat across future deployments and partnerships." KIDZ AI is an AI-driven education technology company developing proprietary learning systems from live teaching experiences. It uses AI agents and robotics to make learning outcomes measurable and accessible across borders. KIDZ Stock Price Activity: KIDZ AI shares were up 74.28% at $0.72 at the time of publication on Tuesday, according to Benzinga Pro data. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

KIDZ AI Enters into $44.6 Million Definitive GPU Compute Services Agreement with Canopy Wave

The partnership anchors KIDZ AI's differentiated neocloud model: long-term contracted enterprise demand paired with infrastructure purpose-built for cost-efficient, open-weight AI NEW YORK, July 21, 2026 (Newswire.com) - KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) ("KIDZ AI" or the "Company"), a leading provider of live online learning and AI-powered education solutions, today announced that it has entered into a definitive 60-month enterprise AI compute services agreement with Canopy Wave, Inc., with an aggregate contract value of $44.6 million. The agreement is subject to the Company's subsidiary placing a non-cancellable order for the GPU servers necessary to perform its services under the agreement. Canopy Wave is a leading AI inference platform specializing in the deployment of top-tier open models, uniquely optimized to run affordable AI breakthroughs - including Moonshot AI's 2.8-trillion-parameter Kimi K3 and DeepSeek architectures - with industry-leading cost efficiency. Under the terms of the agreement, KIDZ AI's wholly owned subsidiary, Catalyst Compute LLC, will order and deploy a dedicated cluster of 256 NVIDIA HGX B300 GPUs across 32 specialized GPU nodes, each equipped with dual Intel Xeon 6776P processors, 4TB of DDR5 memory, and ultra-fast 800Gb/s InfiniBand interconnectivity. A DIFFERENTIATED NEOCLOUD MODEL The agreement reflects how KIDZ AI seeks to differentiate its neocloud model from the broader field of GPU cloud providers: rather than deploying merchant capacity and competing on raw scale, the Company pairs infrastructure deployments with long-term contracted enterprise demand and purpose-builds for what it believes is one of the fastest-growing segments of the market - high-throughput, cost-efficient inference on open-weight frontier models. The Company believes recent market developments support this positioning. Open-weight models such as Kimi K3 have meaningfully narrowed the capability gap with leading proprietary models at substantially lower token cost, and KIDZ AI expects economic efficiency - cost per token, throughput, latency, and utilization - to become an increasingly important competitive differentiator as affordable AI expands the addressable market for compute. Canopy Wave's capabilities across optimized inference, AI cloud services, and enterprise-grade GPU infrastructure align KIDZ AI with demand-side inference workloads, and the Company believes the partnership can serve as a repeatable template for future deployments. MANAGEMENT COMMENTARY "Today's agreement is just the beginning of our journey with KIDZ AI," said Tao Zhang, Chief Executive Officer of Canopy Wave. "We look forward to helping KIDZ AI scale additional GPU clusters and turn this infrastructure into powerful token factories for the enterprise AI market. By combining KIDZ AI's next-generation compute platform with Canopy Wave's optimized inference capabilities, we believe we can deliver secure, cost-efficient, enterprise-grade AI inference services with strong data privacy protections to enterprises across the United States." "This milestone contract is an important step in KIDZ AI's evolution into a broader AI technology and infrastructure platform," said Stephanie Luo, Chief Executive Officer of KIDZ AI. "What we believe sets our neocloud model apart is pairing next-generation computing infrastructure with long-term contracted enterprise demand - a scalable commercial foundation rather than speculative capacity, and a model we aim to repeat across future deployments and partnerships." "Cost-efficient open-weight models such as DeepSeek and Kimi are shifting the AI market from a race defined by raw scale to one increasingly defined by economic efficiency," Luo continued. "Canopy Wave's strength in optimized inference aligns directly with this shift, and we believe affordable AI will be one of the most powerful structural forces driving the next phase of adoption." About Canopy Wave, Inc. Canopy Wave, Inc. is an AI inference and infrastructure company headquartered in Santa Clara, California. The company provides secure, scalable, and cost-efficient API access to open-weight AI models through its optimized inference platform and high-performance computing infrastructure. Canopy Wave supports a range of advanced model families, including Moonshot AI, DeepSeek, Qwen, and Zhipu AI, and serves AI developers and enterprise customers seeking high-throughput, low-latency inference capabilities. The company maintains SOC 2-certified data security and privacy controls. For more information, visit canopywave.com. About KIDZ AI KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW), formerly known as Classover Holdings, Inc., is an AI-driven education technology company transforming live teaching experience into proprietary AI-powered learning systems. By integrating artificial intelligence, AI agents, and robotics, KIDZ AI is building global education infrastructure designed to make learning outcomes measurable, verifiable, and accessible across borders. The Company is strategically expanding into AI compute infrastructure, GPU cloud platforms, and data center ecosystems. Forward-Looking Statement This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on KIDZ AI's current beliefs, expectations and assumptions regarding the future of KIDZ AI's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of KIDZ AI's control including, but not limited to: KIDZ AI's ability to execute its business model, including obtaining market acceptance of its products and services; KIDZ AI's ability to obtain the GPUs necessary to perform its obligations under the definitive agreement with Canopy Wave and achieve its goals and expected results; KIDZ AI's financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; KIDZ AI's ability to maintain the listing of its securities on Nasdaq; changes in KIDZ AI's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects and plans; KIDZ AI's ability to attract and retain a large number of customers; KIDZ AI's future capital requirements and sources and uses of cash; KIDZ AI's ability to attract and retain key personnel; KIDZ AI's expectations regarding its ability to obtain and maintain intellectual property protection and not infringe on the rights of others; changes in applicable laws or regulations; the possibility that KIDZ AI may be adversely affected by other economic, business, and/or competitive factors; the risk that the price of any crypto asset, many of which have historically been subject to dramatic price fluctuations and are highly volatile, could fall substantially negatively impacting KIDZ AI's financial condition and results of operations; regulatory changes related to crypto assets; and fluctuations in the price of crypto assets. These risks and uncertainties also include those risks and uncertainties indicated in KIDZ AI's filings with the SEC. KIDZ AI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statement made by KIDZ AI in this press release is based only on information currently available to KIDZ AI and speaks only as of the date on which it is made. KIDZ AI undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.