Brand Engagement Network (NASDAQ: BNAI), a provider of secure 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 partnership is anchored by a $2.05 million preferred equity contribution recognized as intellectual property licensing revenue, signaling a substantial financial commitment to the continent's digital transformation.
Under the agreement, BEN will hold a 25% common equity stake and 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. Additionally, BEN has granted an exclusive, perpetual license with right of first refusal for African markets, establishing a long-term foothold in a rapidly growing region. This structured approach provides both immediate revenue recognition and sustained participation in the market's growth.
The partnership's significance extends beyond commercial terms to include a memorandum of understanding with Nelson Mandela University. This collaboration will deploy a regulated, institution-approved AI pilot focused on student wellbeing. The pilot will utilize BEN's proprietary Engagement Language Model and retrieval-augmented generation technologies within a secure, closed-loop environment. This initiative is specifically aligned with data sovereignty and governance requirements, addressing critical concerns in regulated sectors.
This development matters because it represents a targeted expansion of enterprise-grade AI into African markets with built-in governance frameworks. For industries operating under strict compliance requirements, BEN's platform offers highly personalized, multimodal AI within secure environments. The company's focus on regulated and high-impact industries means its technology is designed with governance, compliance, and reliability embedded by design from the outset.
The potential impact is multifaceted. For African governments and commercial entities, the partnership provides access to secure AI solutions tailored to local regulatory landscapes. For the global AI industry, it demonstrates a viable model for international expansion that respects data sovereignty. The university pilot specifically shows how AI can be deployed in sensitive areas like education and wellbeing with appropriate safeguards. The financial structure, including the equity stake and revenue sharing, creates alignment between the partners and long-term investment in the region's technological infrastructure.
More information about Brand Engagement Network's enterprise AI solutions can be found at https://www.brandengagementnetwork.com. Details about the specialized communications platform that distributed this announcement are available at https://www.AINewsWire.com, with full terms of use and disclaimers accessible at https://www.AINewsWire.com/Disclaimer.
