Brand Engagement Network (BNAI) announced a $5 million exclusive AI licensing partnership with SKYE Inteligencia LATAM, effective October 30, 2025. The agreement gives BNAI a 25% ownership stake, a board seat, and a preferred‑equity structure that recognizes the $5 million as IP‑licensing revenue. In addition, BNAI will receive a 35% share of all software, SaaS, services, and subscription revenue generated by SKYE, and the deal grants BNAI an exclusive government‑sector license in Latin America and Spain.
The partnership marks BNAI’s first major international licensing agreement and represents a strategic pivot into regulated markets where data‑sovereignty and privacy laws are tightening. BNAI’s prior quarterly revenue was only $5,000, and the company had posted a net income of $0.9 million largely due to a one‑time debt‑extinguishment gain. The $5 million infusion therefore provides a critical cash cushion and a recurring revenue stream that can help the company move from a cash‑burning start‑up to a more sustainable operating model.
The $5 million is recognized as upfront IP‑licensing revenue, while the 35% revenue share offers a long‑term, scalable income source that aligns BNAI’s interests with SKYE’s commercial success. The equity stake gives BNAI upside potential if SKYE expands its footprint in Mexico, Brazil, and Argentina—countries that have recently enacted stringent data‑localization mandates. By leveraging its proprietary Engagement Language Model (ELM™) with Retrieval‑Augmented Generation (RAG), BNAI can deliver compliant, localized AI solutions that meet these regulatory requirements.
SKYE Inteligencia LATAM is a leading Latin‑American technology firm with a strong presence in the public‑sector AI market. Its client base includes several government agencies and large enterprises that require data‑localization and privacy compliance. The partnership gives BNAI direct access to these customers and positions the company to capture a share of the growing AI adoption wave in regulated sectors such as finance, healthcare, and public administration.
Tyler Luck, Acting CEO and Co‑Founder of BNAI, said the deal “propels our AI into the heart of Latin America’s digital transformation, giving us a foothold in markets that demand data‑localization and privacy compliance.” Gastón Iván Gaxiola Romero, CEO and Chairman of SKYE, added that the collaboration “will empower governments and enterprises to modernize while respecting local data laws, positioning us to lead Latin America’s AI revolution.”
The announcement was well received by investors, reflecting confidence in the strategic value of the deal and the potential for recurring revenue in a high‑growth, regulated market. However, BNAI’s underlying financials remain fragile, and the company will need to demonstrate sustained revenue growth and margin improvement to fully capitalize on this partnership.
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