Brand Engagement Network (NASDAQ: BNAI), a provider of secure, governed conversational AI solutions for regulated industries, has finalized a strategic partnership with Valio Technologies to establish an exclusive AI licensing framework for government and commercial markets across Africa. The agreement is anchored by a $2.05 million preferred equity contribution recognized as intellectual property licensing revenue, signaling significant financial commitment to the African technology market.
Under the partnership terms, Brand Engagement Network will hold a 25% common equity stake and secure a board seat in a newly formed South Africa-based entity. The company will also receive a 35% revenue share across software, SaaS, services and subscriptions, while granting an exclusive, perpetual license with right of first refusal for African markets. This structure creates a sustainable revenue model while establishing Brand Engagement Network's presence in a rapidly growing technology market.
The partnership includes a memorandum of understanding with Nelson Mandela University to deploy a regulated, institution-approved AI pilot focused on student wellbeing. This initiative will utilize Brand Engagement Network's proprietary Engagement Language Model and retrieval-augmented generation technologies within a secure, closed-loop environment aligned with data sovereignty and governance requirements. The university collaboration represents a practical application of AI technology in educational settings while addressing important data privacy concerns.
Brand Engagement Network's platform is designed for regulated and high-impact industries, delivering highly personalized, multimodal AI within secure, closed-loop environments. The company's technology helps organizations modernize operations, improve decision-making, and enhance customer engagement while maintaining compliance with governance requirements. This focus on security and regulation makes the company's solutions particularly suitable for government and institutional applications across Africa.
The African technology market represents significant growth potential, with increasing digital transformation initiatives across government, education, and commercial sectors. By establishing an exclusive licensing framework through this partnership, Brand Engagement Network positions itself to capture market share while addressing the specific regulatory and data sovereignty requirements of African nations. The partnership structure provides local presence through the South Africa-based entity while maintaining technology control and revenue participation.
The student wellbeing pilot at Nelson Mandela University demonstrates practical applications of AI technology in educational settings, potentially serving as a model for other institutions across the continent. By focusing on regulated environments and data governance, the partnership addresses growing concerns about AI implementation in sensitive sectors. This approach may influence how other technology companies approach African market expansion, particularly in regulated industries.
For more information about Brand Engagement Network's technology platform, visit https://www.brandengagementnetwork.com. Additional details about the partnership and licensing agreement can be found at https://ibn.fm/9diIU.
