Gorilla Technology Group Touts Shift to AI Infrastructure, $3.3B Yotta GPU Framework in Fireside Chat

Key Points

• Gorilla says it's shifting from an AI software company to an AI infrastructure provider, unveiling a Yotta GPU framework that moves beyond pilots to large-scale deployments — an initial ~640-server (~5,000+ GPUs) rollout plus a second contract for ~20,736 B300 GPUs, bringing the program to roughly 22,000–25,000 GPUs with a commercial value of about $3.2–$3.3 billion.
• Management highlighted strong demand driven by sovereign AI
• Gorilla is focusing on improving margins and reducing leverage — debt fell from ~$21.5M (end‑2024) to ~$13.2M (Q1) with about $19M cash on the balance sheet — while targeting non‑dilutive, project‑level financing, $2–3B of funds under management by 2027, and a 2026 revenue target of roughly $600M.

Gorilla Technology Group NASDAQ: GRRR used a Water Tower Research fireside chat to outline what CEO Jay Chandan described as a strategic shift from being primarily an AI software company to becoming an “AI infrastructure company,” highlighting recent announcements tied to its framework with Yotta and a broader push into sovereign and regional AI infrastructure across Asia and other markets.

Yotta framework: from pilots to large-scale GPU infrastructure

Chandan said the Yotta-related announcements are intended to demonstrate “real infrastructure, real GPUs, real deployment, but more importantly, real revenues,” positioning the effort as more than a pilot program.

He outlined an initial Yotta deployment of “about 640 high-performance servers,” representing “roughly 5,000+ GPUs.” He added that the company subsequently signed a second contract with Yotta covering “an additional roughly 20,736 GPUs,” which he said are “B300 GPU cards” and are expected to form “the largest AI cluster within the region.”

Chandan also said NVIDIA has taken “one half of the offtake agreement with Yotta,” and that deliveries “have to be delivered by 30th of September this year.” He pegged the “total aggregate value” of the second phase at “roughly around $2.7 billion-$2.8 billion,” and described the announced commercial values for the overall Yotta framework at “roughly around $3.2 billion-$3.3 billion,” referencing a total of “about 22,000 and 25,000 GPUs.”

In discussing the partnership, Chandan characterized Yotta as a serious operator, citing data centers “14 stories high” and describing the relationship as built on “trust” and “scaling,” rather than a basic supplier arrangement.

India and sovereign AI demand

Chandan repeatedly returned to India as a central driver of demand, describing it as “one of the most important AI infrastructure markets on the planet.” He pointed to the country’s digitization, including “roughly about 1 billion+ people using the internet” and “22.5 billion-22.6 billion UPI transactions just last month alone,” arguing that the growth in data usage creates a direct need for compute infrastructure.

He framed the opportunity around “sovereign AI,” saying countries are increasingly focused on keeping data, models, and citizen services within national borders. Chandan cited India’s existing base of “38,000 high-performance GPUs,” the addition of “another 20,000 GPUs,” and said Gorilla is seeing “significant demand requests” that could involve “another 30,000, 40,000, 50,000 GPUs on top of what we’ve already built.”

Balance sheet, margins, and profitability focus

CFO Bruce Bower, responding to a question about profitability and the balance sheet, said debt reduction has been a sustained focus. He stated the company had “about $21.5 million of debt” at the end of 2024 and that it was reduced to “$13.2 million” as of the end of the first quarter. He explained that paying down debt also released restricted cash held as collateral, resulting in “very little unrestricted or free cash” moving out to accomplish the reduction.

Bower added that the company has also been reducing restricted cash balances, noting “just last week we had an extra $5 million released.” He said Gorilla had “about $19 million as of today on the balance sheet,” describing the goal as funding its project pipeline, including equipment deposits, while maintaining runway for SG&A.

On profitability, Bower said historical gross margin has been “30%-35%,” and asserted that newer projects should improve the mix and “lead to improving margins” at both the gross margin and EBITDA levels. He also said the company’s funding focus is to pursue structures that do not stress the parent balance sheet, including project-level financing such as “non-recourse” structures, along with “debt, and non-dilutive financing at the parent company level as well.”

Global rollout and Thailand data center campus

Chandan said Gorilla’s expansion beyond a single-market technology profile was deliberate, driven by enterprise demand for “secure infrastructure” and government interest in sovereign AI. He cited activity or plans across India, Singapore, Malaysia, Thailand, Indonesia, the Philippines, Taiwan, and also referenced the Middle East and U.S. tied to the company’s Astrikos.ai investment.

He highlighted a recent Thailand announcement related to Korat (near Nakhon Ratchasima), describing it as a step toward owning key infrastructure components. Chandan said Gorilla purchased a campus with “roughly around 200 MW of total facility load,” providing “about 150 MW of IT load,” and is working with the government on additional power. He said discussions involve “additional 250 MW-300 MW of power being available” through local substations near the site.

Chandan said the Thailand campus is intended to support “high-density compute,” “AI GPU as a service,” “sovereign clouds,” and “hyperscale colocation,” and called it a “steppingstone” for broader regional development. He also referenced looking at other land agreements, including Indonesia and Malaysia, and described how different markets play distinct roles in the company’s regional strategy.

Fundraising approach and 2026 outlook

On funding, Chandan argued that AI infrastructure does not have to mean large equity dilution, emphasizing a preference for “non-dilutive or with minimal dilutive structures.” He listed potential approaches including project-level financing, customer-backed structures, asset-backed debt, vendor financing, SPV-based financing, institutional co-investments, infrastructure funds, strategic partners, and family offices.

He also pointed to “Gorilla Technology Capital,” describing it as the Shackleton Finance acquisition with “full FCA approval,” and said it creates an additional route to fund data centers and GPU-as-a-service deployments. Chandan said the company is “targeting roughly around $2 billion-$3 billion of funds under management by the end of 2027.”

Discussing outlook, Chandan said the company intends to update guidance “responsibly as, and when needed,” noting that data center architecture, procurement, and supply chain timelines can take months. He described 2026 as a year to demonstrate that scaling is real and referenced a “personal target next year” of “about $600+ million,” while also reiterating the company has previously talked about “$500+.”

About Gorilla Technology Group NASDAQ: GRRR

Gorilla Technology Group is a Taiwan‐based provider of video computing and artificial intelligence solutions, offering software and hardware platforms for real‐time video analytics, facial recognition and edge‐computing applications. The company’s core business centers on the development of AI‐driven surveillance technologies that can be deployed in cloud, on-premise or hybrid environments. Gorilla Technology Group’s platforms are designed to process high-volume video data streams for security monitoring, operational optimization and business intelligence.

The company’s flagship offerings include video management systems integrated with smart analytics modules, IoT gateways for edge-level data processing and AI engines for tasks such as people counting, license plate recognition and behavioral analysis.

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