Fatfish Group Ltd. announced that it has formed a new 100% owned subsidiary named Fatfish Applied AI Lab Ltd. to further its incubation business and will invest AUD 1 million immediately into FAI, with an intention to invest up to AUD 7 million further capital into FAI over the next 3 years from operating cash flow. FAI's core mission is to continue FFG's core business of incubating and investing into disruptive technologies in both consumer and enterprise online services. FAI will have an emphasized focus of using the emerging generative AI technologies to find commercial applications in verticals that FFG is operating in, namely digital entertainment, fintech and e-commerce businesses.

Generative AI largely refers to a new category of technology that uses advanced machine learning algorithms to utilize large language models based on high performance cloud computing infrastructure and a very large data set to generate content that is intuitive and extensive. Generative AI is already being used in many sectors of the tech industry. FAI's engagement model will be three-fold: Developing New Business with Existing FFG's Investees.

To work with the extensive portfolio of investee companies of FFG across Australia, Asia and Europe to identify new business opportunities that uses generative AI technologies. Identifying New Business To Invest or Acquire. To identify new disruptive technologies startups that FAI could invest or acquire wholly or partially, and extend FAI's incubation and development services post-transaction.

Identifying Business Opportunities with Third-party Businesses. To provide Consulting and Development Services to identified third-party enterprises that have business opportunities to disrupt the market via generative AI technologies in return for a combination of Equity and Fees. FFG will re-deploy some of its technical personnel with experience in big data, machine learning experiences to FAI, while continuously being on the lookout to recruit global talents that could help with FAI's mission.

Generative AI presents what the FFG management considers to be the most important. development in the history of computing since the explosion of the Internet. A direct example of how generative AI will reshape computing is video game development - an area FFG has a particular interest in - where the technology will shorten development timeframes and, with self-learning decision making algorithms, create entirely new and never-before-seen interactive experiences.

As part of its strategy, FAI intends to invest or acquire Generative AI-oriented startups for its technology or talents. FFG will keep the market posted on any significant investments or acquisitions of FAI and will onwards seek approvals from ASX or relevant authorities if such approvals are needed for the transactions. FFG plans to accelerate capital deployment into FAI upon successful results, and will provide updates to ASX on the development of FAI.

The initial launch of FAI will be funded from the recently completed highly successful capital raising via placement of AUD 3.25 million fresh capital in FFG, and is a further extension of FFG's strategy as an incubator of new ventures in emerging technologies.