AlphaTON Signs $46 Million Compute Power Agreement to Expand Telegram Ecosystem Cocoon AI Deployment

AlphaTON Capital Corp (NASDAQ: ATON) has signed a $46 million AI compute infrastructure deal to expand its involvement with Telegram's Cocoon AI network. The agreement includes the purchase of 576 NVIDIA B300 chips, which will be deployed in a half-cluster. This represents AlphaTON's first large-scale deployment of confidential compute power for Cocoon AI.

The chips are scheduled to be delivered in February 2026 and installed at AtNorth's data center in Sweden. This facility runs on 100% hydroelectric power, emphasizing AlphaTON's focus on sustainable operations. The deployment is projected to yield a 27% internal rate of return and a net present value of $11 million.

AlphaTON has financed the deal through a mix of cash, debt, and equity. The company has already paid $4 million upfront from its balance sheet, secured $32.7 million in non-recourse debt financing, and will pay an additional $9.3 million in equity installments before deployment in March according to recent reports.

Why Did This Happen?

AlphaTON's move is driven by a growing demand for privacy-preserving AI infrastructure. The company aims to provide an alternative to Big Tech's AI platforms by leveraging Telegram's decentralized network. Cocoon AI allows users to process queries with encrypted data, ensuring privacy and data sovereignty as detailed in industry analysis.

The project aligns with broader trends in AI infrastructure. Big Tech companies have invested over $400 billion in AI infrastructure in 2025 and are expected to spend over $600 billion in 2026. Governments are also prioritizing domestic AI capabilities, with the U.S. taking a 10% stake in Intel to ensure semiconductor supremacy according to recent developments.

AlphaTON's ability to manage its capital structure while scaling operations will be a key focus. The company has already taken steps to de-risk its balance sheet by adding physical assets and strategic partnerships. Further financial discipline will be necessary as the company expands into new markets as reported by industry observers.