Why Did Treasure Global Inc. Plunge 7.08% Amid AI Cloud Push?

On March 25, 2025, Treasure Global Inc. (TGL) experienced a significant drop of 7.08% in pre-market trading, reflecting a notable shift in investor sentiment.

Treasure Global Inc. has recently announced a strategic initiative to develop and deploy an advanced AI cloud infrastructure in Malaysia. This new platform is designed to support AI models with up to one trillion parameters, making it one of the most powerful AI computing environments in Southeast Asia. The initiative is part of Treasure Global's expansion into enterprise-grade AI infrastructure, which will support the next generation of large language models, computer vision systems, and generative AI applications.

The development of this AI cloud platform has already commenced, with phased deployment scheduled throughout 2025. The platform will leverage cutting-edge GPU clusters optimized for large-scale, multi-modal AI workloads, built on DeepSeek's technology. This infrastructure will provide the high-performance computing capabilities necessary for hosting and training trillion-parameter models, rivaling the largest existing AI environments globally.

The rapid growth of AI infrastructure is a global trend, with the market estimated to reach USD60.23 billion in 2025. This trend is also evident in Malaysia, which is rapidly emerging as a regional hub for digital innovation. The country is addressing the increasing demand for scalable computing infrastructure, catering to both public and private sector needs across industries such as finance, healthcare, education, and logistics.

To support this strategic initiative, Treasure Global has secured a USD16 million service agreement with V Gallant Sdn Bhd, a Malaysia-based AI solution provider. This agreement, signed in 2024, has been revised to redirect a substantial portion of the capital commitment toward the design and deployment of the AI cloud platform. The agreement remains in effect through December 2025, with both parties committed to accelerating Treasure Global's role in Southeast Asia's AI infrastructure landscape.

Treasure Global's AI cloud platform is expected to broaden access to high-performance AI capabilities across multiple sectors, including financial services, healthcare, retail and logistics, and the public sector and education. The platform will support a range of applications, from risk analytics and diagnostic imaging to demand forecasting and customer personalization.