Key Takeaways:
TVB Group is betting its post-loss turnaround on AI infrastructure, forming a joint venture with Gaw Capital to build a 10,000-PetaFLOPS computing facility at its Hong Kong campus.
TVB Group is pivoting from broadcasting to AI infrastructure, forming a joint venture with Gaw Capital backed by up to HK$2 billion for a 10,000-PetaFLOPS computing facility at its Tseung Kwan O campus.
"Leveraging our years of collaboration with leading technology enterprises, we have observed the enormous and continuously growing demand for computing resources driven by the rise of artificial intelligence," TVB Group said in its exchange filing on August 10.
The joint venture will be held 51 percent by TVB and 49 percent by Gaw Capital, with the formal agreement targeted for the second half of 2026. The facility will procure and operate GPUs and CPUs, delivering AI computing services to external clients and TVB subsidiaries on a subscription basis. Phase 1A is targeted for commercial operation from the fourth quarter of 2027.
The deal marks TVB's most significant diversification since returning to profitability in 2025 after seven consecutive years of losses totaling HK$3.09 billion. The company also signed a letter of intent with an unnamed global technology group for computing service subscriptions, with a definitive agreement expected in the second half of 2026.
TVB shares surged as much as 9.7 percent on August 11 to HK$2.835, before settling at HK$2.735, up 5.8 percent. The stock closed at HK$2.58 on August 10, up 2.17 percent, giving the company a market capitalization of about HK$1.12 billion.
The project will be funded through Gaw Capital's equity investment of up to HK$2 billion, project bank financing, and TVB's internal resources. TVB is in discussions with CLP Holdings for power supply and negotiating with multiple international and domestic equipment suppliers for GPU procurement. The joint venture has begun recruiting industry experts.
The 10,000-PetaFLOPS target for Phase 1A represents a substantial computing capacity. For context, Nvidia's H100 GPU delivers approximately 990 TFLOPS of FP16 compute per Nvidia's published specifications, meaning the facility would require thousands of high-end GPUs to reach its target capacity. The scale places the project among the larger AI computing initiatives planned in Hong Kong, where data center capacity has become a strategic priority.
The venture positions TVB as a participant in Hong Kong's AI infrastructure buildout, competing with established data center operators and cloud providers such as AWS, Microsoft Azure, and Alibaba Cloud that serve the region. Hong Kong has been actively courting AI investment as part of its push to become an international innovation and technology hub, with the government offering land and incentives for data center development.
TVB's financial turnaround provides the foundation for this expansion. For the full year 2025, the company reported revenue of HK$3.19 billion, down 2.02 percent year-on-year, but EBITDA rose 23.73 percent to HK$365 million. Profit attributable to shareholders reached HK$59.29 million, reversing a loss of HK$491 million in 2024.
The company completed a brand upgrade last month, changing its name from "Television Broadcasts" to "TVB Group" effective August 6, reflecting its shift from a traditional television station to a cross-media entertainment group. TVB produces more than 20,000 hours of film, television, variety, and news content annually.
TVB said it is exploring AI tools that could enable external content creators to use its content library, which would increase demand for the computing capacity the joint venture will provide. The company described the computing initiative as a key driver of its transformation.
The framework agreement and letter of intent are non-binding, and implementation remains subject to approval from relevant government authorities. TVB shares traded at HK$2.735 as of the August 11 session, up 5.8 percent.
This article is for informational purposes only and does not constitute investment advice.
