Datasea Shares Surge On AI-Services Contracts

Dow Jones

2024-09-18

By Chris Wack

Datasea shares surged after the company said its subsidiaries have signed multiple artificial-intelligence-related contracts.

Shares of the technology company were recently up 36% at $3.08, after it said its Chinese subsidiaries each entered into an agreement with Qingdao Ruizhi Yixing Information Technology to supply advanced 5G-AI multimodal services.

As of Sept. 12, Datasea said its subsidiaries had already provided services worth an estimated $9 million to Qingdao Ruizhi Yixing. Datasea is providing 5G-AI multimodal digital services, including enhanced products and specialized marketing tools, tailored to meet the needs of Qingdao Ruizhi Yixing's business customers.

The contracts could total up to $30 million over the course of 12 months, the company said, and will have a "substantially positive" revenue impact on its financial performance in fiscal 2025.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

September 17, 2024 13:44 ET (17:44 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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