Datavault AI Inc. (NASDAQ:DVLT) announced a significant expansion of its partnership with International Business Machines Corporation (NYSE:IBM), focusing on delivering enterprise-grade artificial intelligence at the edge in the densely populated metropolitan areas of New York and Philadelphia. The collaboration centers around Datavault AI’s SanQtum AI platform, a synchronized network of micro edge data centers optimized to run IBM’s watsonx AI products.
SanQtum AI operates within a zero-trust network architecture, fostering highly secure data handling through real-time processing. The platform offers features including cybersecure data storage, instant data scoring, tokenization, and ultra-low-latency computing tailored for two of the most data-intensive urban regions in the United States. This arrangement enables enterprise clients to process and secure their data at its origin, thereby converting raw data inputs into validated digital assets capable of trading almost immediately.
By embedding Datavault AI’s proprietary Information Data Exchange and DataScore agents—both developed in conjunction with IBM’s watsonx—inside SanQtum AI’s zero-trust edge environment, the company facilitates the transformation of input data into authenticated digital property. This capability supports diverse applications ranging from enterprise AI operations and media analytics to identity verification, credentialing, tokenization, and secure data commerce without reliance on public cloud services, which often pose considerable security vulnerabilities.
As a result of the platform’s GPU-optimized and distributed edge computing design, Datavault AI plans to deploy these functionalities extensively across New York and Philadelphia by the first quarter of 2026, with intentions to scale to other metropolitan regions subsequently.
CEO Nathaniel Bradley emphasized the combined strength of IBM’s watsonx portfolio and SanQtum AI’s architecture, stating, “The watsonx portfolio of AI products gives us the added intelligence, SanQtum AI gives us the speed, and together they give Datavault AI the ability to create authenticated digital property nearly at the instant data comes into existence.” He further highlighted the potential shift this innovation could bring to data economics, with targeted services for clients including media enterprises, sports organizations, and government entities along the Northeast Corridor, promising enhanced performance and stringent security.
Echoing this sentiment, Biz Dziarmaga, Head of Americas AI Partnerships at IBM, remarked, “Our work with Datavault AI and Available Infrastructure demonstrates the power of IBM’s ecosystem approach—leveraging watsonx to deliver scalable AI that helps enterprises drive smarter operations and faster business outcomes.”
In a newly disclosed development from the previous day, Datavault AI detailed a retail-focused collaboration with Riflessi, a prestigious Fifth Avenue retail destination in New York City. Starting February 2026, the company will implement its DVHOLO holographic display and ADIO spatial audio systems within Riflessi, intending to showcase luxury fashion items, create immersive advertising experiences, and cultivate new revenue channels grounded on data-driven, customized content offerings.
Regarding market performance, shares of Datavault AI declined 9.00% to $1.05 as of Thursday's trading session, according to Benzinga Pro data.
Key Points:
- Datavault AI has extended its partnership with IBM to deploy SanQtum AI micro edge data centers utilizing watsonx AI products in New York and Philadelphia.
- SanQtum AI operates on a zero-trust network providing secure, real-time data processing, tokenization, and storage optimized for low latency.
- The platform enables enterprises to convert raw data into authenticated digital assets immediately, supporting various high-value applications.
- Datavault AI plans to launch immersive holographic and spatial audio retail technologies at a prominent New York City luxury retailer beginning in February 2026.
Risks and Uncertainties:
- The rollout of SanQtum AI’s platform at scale is scheduled for early 2026, suggesting that current capabilities remain in developmental or preparatory stages.
- Dependence on emerging zero-trust networking and edge computing technologies may present implementation or operational challenges.
- Market acceptance and revenue generation from immersive retail technology deployments remain to be demonstrated.
- The company's stock price declined notably following the announcement, indicating investor uncertainty or cautious sentiment.