Substrate Artificial Intelligence (AQSE:SAI.B, OTCQB:SUIAF) has detailed its investment and growth plans for the coming years, as it seeks to accelerate the development of key businesses – three of which are earmarked to spin-out for IPO by 2028.
The Spanish AI firm at the same time highlighted a strengthening financial performance that sees it generating €4 million of earnings (EBITDA) and a €1 million net profit.
As well as building the Subgen AI, Cuarta Dimensión Medica, and Fleebe AI towards their respective planned IPOs, the firm is also planning a significant investment, up to €100 million, into data centers – establishing valuable technology infrastructure to bolster its position in the market.
“AI infrastructure is vital for the development of the LLMs (large language models) we have in place and to be able to offer our customers secure services in which operations are carried out in their territory, reducing security concerns, which is absolutely necessary for AI to truly scale in society,” Substrate AI chief executive José Iván García said in a statement.
“For this reason, we are studying all the financing possibilities available to us to build this necessary infrastructure in Spain to serve the users of our LLMs and our Serenity Star SaaS in a safe and predictable way."
On top of these investments, the company is also planning to invest in companies, budgeting around €20 million between 2024 and 2028, targeting ‘companies that can be enhanced with artificial intelligence’.
Specifically, Substrate said it is seeking investments in “cash-generating businesses in which artificial intelligence can be a significant competitive advantage”.
Substrate today gave investors sight of its financial projections for the 2024 financial year.
Total revenue for the year is forecast by the company at €20.57 million, whilst earnings (EBITDA) are predicted to reach €4.025 million.
The company expects to see an increase in consolidated turnover driven by organic growth and improvements in operational efficiency.
Assuming these projections are met, it will be the first time since the company’s initial public offering in Spain that it will report positive EBITDA.
Today’s statement comes ahead of an investor event later this evening in London, at the Brewery at 18:30.