(Yicai) July 26 -- Shares of Philisense Technology surged by the exchange-imposed daily trading limit after the Chinese digital technology services supplier said it would lease computing power to a leading artificial intelligence company.

Philisense [SHE: 300287] closed 20 percent up at CNY2.20 (30 US cents) in Shenzhen today. 

Philisense will lease more than 4,000 petaflops of computing power and provide related services, such as computing servers for AI training and supporting equipment, for a total value of about CNY1.1 billion (USD149.7 million) to a major AI company, the Beijing-based firm announced yesterday, citing a deal it plans to sign with the client.

The project, which is expected to last for five years, will be carried out in phases, Philisense noted, without revealing any further details.

The deal will have a positive impact on Philisense’s financial performance this year because its value exceeds the company’s audited revenue of last year. It will also help the two partners to establish an in-depth cooperation.

AI computing power leasing is a new business that Philisense recently forayed into. According to the firm’s latest annual financial statement, its revenue from the Internet of Things and smart product businesses totaled CNY823 million (USD113.6 million), accounting for just over 65 percent of the total.

Editor: Futura Costaglione