Shares of PATEO Group Holding Ltd (02889) rose nearly 10% in early trading, gaining 7.16% to HK$215.6 with a turnover of HK$58.17 million.

The surge follows the company's announcement of a strategic cooperation agreement signed with NVIDIA in the United States.

Both parties held constructive discussions on advanced areas including in-vehicle AI, autonomous driving, next-generation computing platforms, and optical communication, aiming to leverage their respective strengths to explore and deepen potential collaboration opportunities.

Notably, PATEO recently disclosed that its first-quarter revenue increased by over 100% year-on-year, with operating profit margin also showing significant improvement compared to the same period last year.

The most forward-looking information from the announcement pertains to its AI business.

The AI Box solution, developed based on the NVIDIA DRIVE AGX Thor accelerated computing platform, has secured a mass production designation from a leading OEM's new energy vehicle brand for its next-generation intelligent models, marking the official transition of AI Box from technical validation to commercial implementation.

Concurrently, the company is actively exploring innovative business models such as computing power charging and in-vehicle token billing.