KUALA LUMPUR (April 10): HeiTech Padu Bhd (KL:HTPADU) has signed two memoranda of understanding (MOUs) to form strategic partnerships in artificial intelligence (AI) computing power cloud services.

The first agreement was signed with Huawei Technologies (Malaysia) Sdn Bhd and MyEG Services Bhd (KL:MYEG) to collaborate on cloud and AI-enabled smart government services.

Under the MOU, HeiTech Padu and MyEG will provide application demand scenarios, while Huawei will offer an AI platform and technology solutions to support HeiTech on a non-exclusive basis.

The three parties also plan to enter into a contract, where Huawei will serve as the technology partner, and HeiTech Padu as the industrial partner, subject to mutual agreement on the terms of collaboration. 

The MOU is effective immediately, and will remain in effect for one year, HeiTech Padu said in a bourse filing on Thursday.

For the second agreement, HeiTech Padu seeks to form a strategic partnership in AI computing power cloud services with Hong Kong-listed Maiyue Technology Ltd (MTL).

The collaboration aims to build an AI computing power centre to provide high-performance computing services to both industry clients and individual users through advanced networks and software.

In this collaboration, HeiTech Padu and MTL will negotiate specific cooperation forms, the scale of preliminary investment, methods of profit distribution, as well as the rights and obligations of each party.

The MOU establishes a strategic partnership to pursue shared goals, combining resources and expertise to enhance competitiveness in the digital economy sector, HeiTech Padu said. "This alignment of interests and capabilities supports a more structured, mutually beneficial collaboration,” it added.

Shares in HeiTech Padu settled five sen or 2.33% higher at RM2.20 on Thursday, giving the technology services provider a market capitalisation of RM244.96 million. Year to date, the counter has fallen nearly 30%.