AZIO AI announced that it has executed a definitive merger agreement with Envirotech Vehicles as part of EVTV’s strategic shift toward artificial intelligence infrastructure, data center operations, and compute capacity expansion. The transaction is structured at a $750 million valuation and is supported by an independent third-party fairness opinion.
The agreement follows approximately six months of collaboration between the companies involving infrastructure deployment, technical integration, customer engagement, and transaction development efforts. The merger represents a substantial increase from the previously announced $480 million valuation outlined in the parties’ earlier letter of intent.
According to the companies, the valuation increase reflects operational progress made during the post-LOI period, including receipt of customer deposits tied to an initial infrastructure order valued at about $118 million, delivery of the first eight server racks under that program, infrastructure deployment progress, and expansion discussions involving AI compute capacity and power availability.
AZIO AI said it is focused on next-generation artificial intelligence infrastructure and power-integrated data center solutions. The combined company plans to pursue several revenue streams, including GPU and server rack sales, AI data center co-development, bitcoin mining operations, and hosting and compute leasing arrangements.
The companies disclosed that approximately 11 MW of power capacity has been identified at EVTV’s existing site, with hardware orders already placed for an initial 6 MW deployment. Management also said discussions are underway regarding long-term ownership and usage rights tied to up to 500 MW of additional power capacity at the same location.
AZIO AI added that it recently signed a memorandum of understanding tied to next-generation GB200-based AI infrastructure opportunities, which management said reflects ongoing engagement with prospective high-performance compute customers.
Under the terms of the transaction, AZIO AI shareholders are expected to receive consideration consisting of 100 million shares of EVTV common stock. The merger agreement has been approved by the boards of directors of both companies.
Following completion of the transaction, Chris Young is expected to serve as Chief Executive Officer and Chairman of the combined company. Elgin Tracy is expected to continue overseeing infrastructure deployment strategy and operational scaling efforts, while Jason Maddox is expected to continue supporting executive operations and infrastructure expansion initiatives.
The companies said near-term priorities include filing a Form S-4 registration statement with the U.S. Securities and Exchange Commission, deploying the secured 11 MW of power capacity, and pursuing additional expansion opportunities targeting up to approximately 100 MW of combined AI compute and bitcoin mining infrastructure capacity.
KEY QUOTE:
“Over the last six months, both organizations continued advancing infrastructure deployment activities, customer onboarding efforts, and transaction execution initiatives. Execution of the definitive merger agreement, supported by an independent third-party fairness opinion, represents a major strategic milestone for the combined company as we continue advancing domestic AI infrastructure deployment and long-term compute expansion initiatives.”
Elgin Tracy, COO, Envirotech Vehicles, Inc.
