Nextech3D.AI (NTAR.C) announces huge services deal with Amazon (AMZN.Q)

If you have a technology company that involves AI and you want my money, you don’t get it just by saying “We have AI.”

If you say, “We have a real AI company with actual tech that we developed, not just a ChatGPT API app,” okay, but still not good enough.

If you have patents protecting that AI tech, okay, but still not good enough.

If you have all of the above AND you’re making revenues.. okay, now we’re interested.

But if you have all of the above AND revenues AND you’re doing business with Fortune 500 companies, take my money.

There are three pubcos that I know of that are in that slim category; Verses (VERS.NEO), Plurilock (PLUR.V), and Nextech3D.AI (NTAR.C).

And, today, Nexttech just dropped an announcement that elevates them to an entirely new class: They’re officially providing their services to Amazon (AMZN.Q).

For those not in the know, Nextech AI provides a system that produces 3D models of products, VFX assets, and the like, for industries that need to upgrade from 2D.

This is a rapidly growing industry because sales of 3D-displayed products online far outrun those displayed with 2D imagery. The bottleneck preventing companies like Amazon from moving their entire e-commerce ecosystem to 3D modeling is the exact thing Nextech fixes – the lack of time, people, and money to change billions of images to movable, spinnable, zoomable, and accurate 3D.

Nextech has been dealing with Amazon for a while, converting assets for the online retail giant in increasingly large batches, with increasingly reduced timelines.

This is in line with most of Amazon’s business practices, where they don’t put a partners product on the front page of their website until they’re sure that partner can handle massive and sudden scale.

To that end, today’s news, that Amazon has cemented the partnership, is the very definition of breakthrough news.

Here are the bullet points:

• Nextech AR Solutions Corp., under the domain Nextech3D.ai, has secured a $2.2 million deal with Amazon, its largest client. This deal contributes to a surge in demand for 3D modeling, especially in Q3 2023.
• The increased demand and consequent revenue increase are largely due to Nextech’s cutting-edge Generative AI technology. This innovation makes Nextech a dominant player globally in producing 3D models for a range of industries, including e-commerce, gaming, and manufacturing.
• Evan Gappelberg, the CEO of Nextech3D.ai, points out that their AI’s scalability allows them to meet Amazon’s stringent 3D model requirements, leading to increased volumes of orders.
• Gappelberg also highlights the ongoing shift from 2D photos to 3D models across various industries. This shift, he predicts, will become the new standard and drive exponential growth in demand and revenue.
• He likens this transition to the shift from Kodak film to digital pictures in the 1990s. With the advent of 3D modeling, digital pictures are becoming obsolete, much like Kodak film.
• Nextech’s Generative AI technology has increased profit margins, helping the company move toward positive cash flow.
• This technology, which allows the creation of 3D models from 2D photos, has set Nextech apart in the industry. They’ve filed a provisional patent to protect the technology.
• Over the past 12 months, Nextech has delivered over 25,000+ 3D models to Amazon, making them a significant player in this burgeoning field.
• Beyond e-commerce, Nextech is expanding into the gaming and manufacturing sectors, offering investors a chance to participate in a company at the forefront of AI-powered 3D modeling innovation.
• Finally, Nextech is compiling a vast library of individual 3D model parts with plans to expand to millions of unique parts. This library allows for faster 3D model creation and drives further industry innovation.

The recent move by Apple (APPL.Q) towards the launch of its new VR headset the Vision Pro will rapidly increase the need for such assets going forward as the hardware brings on new software. Virtual TV and film production, where background sets are no longer old-fashioned wood and nails but instead giant LED screens with on-demand backgrounds and visual effects, also brings that industry firmly into Nextech’s wheelhouse.

On top of the above, NTAR’s share price sits at a low, after getting price protection for a financing at $0.42, shortly before a huge spike in buying. The financing now over, the stock appears set for a near term re-valuation.

For more, see our conversation with Gappelburg, filmed just yesterday as the news was being prepped for release.

— Chris Parry

FULL DISCLOSURE: Nextech is an Equity.Guru marketing client, and we have purchased sstock in the company.