On May 20, 2026, Envirotech Vehicles, Inc. (NASDAQ: EVTV) announced a groundbreaking merger agreement with AZIO AI Corporation, marking a significant shift in the company’s strategic direction. This merger is set to transform EVTV into a U.S.-focused artificial intelligence (AI) infrastructure and compute platform, emphasizing domestic AI deployment and data center operations.

1. Strategic Transformation in AI Infrastructure

The merger represents a pivotal move for EVTV as it aims to establish a strong foothold in the rapidly expanding AI technology market. The collaboration with AZIO AI is expected to enhance the company’s capabilities in AI infrastructure and compute deployment, targeting long-term capacity expansion and increased operational efficiency.

Since the initial letter of intent was signed, AZIO AI has made considerable progress in its operational advancements. Notably, the company received deposits for an initial infrastructure order valued at approximately $118 million and successfully delivered the first eight server racks under this initiative.

Expanding Infrastructure and Revenue Channels

AZIO AI’s ongoing efforts include advancing its infrastructure pipeline through a memorandum of understanding for next-generation AI infrastructure opportunities. This engagement with prospective high-performance compute customers reflects a robust expansion strategy that is expected to yield substantial revenue opportunities for the combined entity.

Post-merger, EVTV plans to diversify its revenue streams across several channels, including:

Sale and distribution of GPUs and server racks to AI infrastructure clients.

Co-development and partial ownership of AI data center infrastructure, primarily in Texas and select international markets.

Domestic bitcoin mining operations leveraging owned infrastructure.

Hosting services and compute leasing arrangements with prospective customers.

Management anticipates that these initiatives will bolster revenue generation as deployment activities progress.

2. Operational Updates and Power Capacity

EVTV has identified approximately 11 megawatts (MW) of power capacity at its existing site, with hardware orders placed for an initial 6 MW of deployment. As installation and energization initiatives move forward, the company is also exploring long-term rights for an additional 500 MW of capacity at the same location, positioning itself advantageously in a market where many AI infrastructure operators face power availability challenges.

Near-Term Milestones and Leadership

In the immediate future, the combined company plans to prioritize several operational goals, including:

Filing a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (SEC).

Deploying the secured 11 MW of power capacity.

Pursuing additional capacity expansion opportunities of approximately 100 MW for AI compute and bitcoin mining infrastructure.

Following the merger’s completion, leadership roles are expected to be filled by key figures from both organizations, with Chris Young slated to become the CEO, and Elgin Tracy continuing his role in overseeing infrastructure deployment.

3. Fairness and Valuation Insights

The merger has received a fairness opinion from an independent financial advisor, confirming that the consideration being offered to AZIO AI’s stockholders is fair to EVTV and its shareholders. The transaction is anticipated to close in the latter half of 2026, contingent upon stockholder approvals and the effectiveness of the SEC filing.

Conclusion

The merger between Envirotech Vehicles, Inc. and AZIO AI signifies a major strategic evolution for EVTV, as it aligns itself with the burgeoning AI infrastructure market. By leveraging advanced technologies and expanding its operational capabilities, the company is poised to unlock new revenue streams and enhance shareholder value in the years to come. As the AI landscape continues to evolve, stakeholders will be keenly watching how this merger unfolds and shapes the future of both companies.

Original press release