Technology Market NewsPentanet’s alliance with NVIDIA extends following optimistic cloud gaming forecast
Pentanet(ASX:5GG) has extended its GeForce Now Alliance partnership agreement with American technology, NVIDIA (NASDAQ:NVDA), including New Zealand as a serviceable territory and potentially expanding into neighbouring regions.
Additionally, Pentanet expects to become the exclusive distributor of GeForce NOW service in Australia, further solidifying its position in the cloud gaming market.
Figure 1:Perth’s Pentanet technology hub
Context
NVIDIA‘s core strengths lie in graphics and processing units, high-performance computing, and data science application programming interfaces, among others.
TheirGeForceproduct line, specifically designed for graphics processing, powers GeForce NOW, offering users anRTXexperience anytime, anywhere, across any GeForce product.
Pentanet Impressive growth
Since its launch, Pentanet has harnessed more than 530,000 CloudGG members, served by
infrastructure located in Perth and Sydney, Australia.Furthermore, the tech company has generated significant revenue from paid memberships, effectively covering its initial launch costs.
Significant agreement changes
The agreement offers Pentanet flexibility allowing it to extend its exclusivity in Australia with the GeForce alliance every six months.
Each extension requires a purchase of GeForce NOW hardware at USD$1.5 million.
However, should Pentanet choose to withdraw its exclusivity, it will retain the first opportunity to consider GeForce offerings in Australia.
Industry forecast
The Australian cloud gaming market is expected to undergo significant growth in the foreseeable future, promising prosperous outcomes for Pentanet.
“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,” Pentanet Managing Director Stephan Cornish said.
“With over half a million members now part of the CloudGG ecosystem, Pentanet continues to demonstrate the growing appetite for cloud gaming in our territory.”
Moreover, Phil Eisler, the Vice President of GeForce NOW at NVIDIA, has endorsed Pentanet as an outstanding partner whose contributions have strengthened Australia’s cloud gaming community.
“Pentanet has fostered a deeply engaged cloud gaming community in Australia with GeForce NOW Powered by CloudGG,” he said.
“Its commitment to delivering GeForce RTX 3080-level performance that elevates experiences for gamers nationwide and underscores the company’s dedication to push the boundaries of gaming and internet connectivity.”
Supporting this, Pentanet’s Q2FY24 results showcased the company’s gaming unit maintaining robust EBITDA, with an impressive 52 percent growth in paid memberships, up from 27 percent in the previous quarter.
5GG’s Australian Security Exchange-listed share price has risen 62% and is currently trading at $0.081 (10.15 am UTC+ 8 hours).
https://themarketbull.com.au/2024/03/15/pentanets-alliance-with-nvidia-extends-following-optimistic-cloud-gaming-forecast/amp/
