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, marking a substantial investment in AI infrastructure for the continent.
Under the agreement, BEN will hold a 25% common equity stake and board seat in a newly formed South Africa-based entity while receiving a 35% revenue share across software, SaaS, services and subscriptions. The company will grant an exclusive, perpetual license with right of first refusal for African markets, ensuring long-term commitment to the region's technological development. This partnership represents a significant expansion of regulated AI technology into African markets, where data sovereignty and governance requirements are increasingly prioritized.
The collaboration 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 BEN's proprietary Engagement Language Model and retrieval-augmented generation technologies within a secure, closed-loop environment aligned with data sovereignty requirements. The university partnership demonstrates how AI can be implemented responsibly in educational settings while addressing specific regional needs.
BEN's platform is designed for regulated and high-impact industries, delivering highly personalized, multimodal AI within secure environments that help organizations modernize operations, improve decision-making, and enhance customer engagement. The company's technology is built with governance, compliance, and reliability embedded by design, making it particularly suitable for markets with stringent data protection requirements. More information about the company's approach can be found at https://www.brandengagementnetwork.com.
The African AI market represents a significant growth opportunity as governments and commercial entities increasingly seek secure, governed AI solutions that respect local data sovereignty laws. This partnership positions BEN to address these needs while establishing a sustainable revenue model through equity participation and licensing agreements. The $2.05 million investment reflects confidence in Africa's growing technology sector and the specific demand for regulated AI solutions that can operate within strict compliance frameworks.
This expansion comes at a time when African nations are increasingly developing their own data governance frameworks and seeking technology partnerships that respect local regulations. The partnership's structure, combining equity participation with revenue sharing, creates alignment between the partners while ensuring long-term commitment to the African market. The inclusion of an academic partnership further strengthens the initiative's credibility and potential for positive social impact through focused applications like student wellbeing support.
