Datavault AI Prepares Acoustic Sciences Spin-Out into New Public Company API Media
Datavault AI Inc. (NASDAQ: DVLT), a technology company focused on licensing, artificial intelligence, and data infrastructure, has begun evaluating a potential dividend spin-out of its Acoustic Sciences division. The plan under review calls for transforming this division into an independent public company, proposed to be named API Media, with an intended listing on the NASDAQ under the reserved ticker ADIO.
This move is not a sale of assets to third parties. If approved and completed, the proposal is to distribute shares of the new API Media as a dividend to current Datavault AI shareholders, giving them direct ownership in two separate companies: Datavault AI, focused on Data Sciences and AI, and API Media, focused on acoustic technologies and live events. The entire transaction is still subject to approval by the board of directors, execution of definitive agreements, satisfaction of closing conditions, and required regulatory approvals.
Datavault AI’s board has also directed that planning consider completion of the spin-out on a timeline aligned with the close of 2026 operations, although the company itself acknowledges that timing may change due to regulatory requirements and external factors. In other words, there is a target but not a guaranteed date: the spin-out remains a plan under evaluation, not a done deal.
How the Split Between Data Sciences and Acoustic Sciences Would Look
Under the proposed structure, Datavault AI would operate with two clearly defined fronts:
- Data Sciences Division, maintaining a focus on cybersecure infrastructure, data tokenization, data monetization platforms, and applied AI, along with its proprietary Information Data Exchange (IDE) concept, a patented technology for secure and structured data exchange;
- Acoustic Sciences Division, which would be carved out into the new company API Media, bringing together technologies and operations such as ADIO, WiSA, Event Citadel, and API Media (which already exists today as an operation inside the group).
According to the company, the Data Sciences Division is expected to strengthen its cybersecure infrastructure efforts with a particular focus on fintech and on leveraging IDE as a foundation for data solutions, digital assets, and Web 3.0. The idea is to concentrate efforts on building a robust ecosystem for processing, protecting, and monetizing large-scale enterprise data.
The acoustic business, in turn, will be repositioned to operate independently, tapping into its portfolio of patents, technology partnerships, and solutions focused on high-definition audio, wireless transmission, spatial sound control, device interoperability, and new use cases involving robotics and drones.
API Media Strategy: ADIO, WiSA, Dolby, and New Acoustic Standards
API Media is being built on a bundle of technologies that currently sit inside the Acoustic Sciences division. Key assets include:
- ADIO: a technology based on inaudible tones (ADIO Inaudible Tones), used for discreet communication and signaling in both physical and digital environments, with applications in non-intrusive advertising, immersive experiences, and Web 3.0;
- WiSA: a high-definition wireless audio standard designed for low-latency, high-fidelity transmission between compatible devices, widely used in home theater systems, professional solutions, and arenas;
- Partnerships with Dolby and spatial audio ecosystems, enhancing the division’s ability to deliver immersive, interoperable sound across multiple scenarios;
- Event Citadel and API Media: operations focused on delivering technology for large events, media management, and support for sound and network infrastructure in complex environments.
Datavault AI’s management plans to use this portfolio to pursue the creation of new industry standards in areas such as:
- high-definition wireless transmission;
- spatial audio control in large venues;
- interoperability across multiple devices and systems;
- audio integration for drones and robotics applications.
The plan also includes a renewed execution of the WiSA semiconductor and software module strategy, with an emphasis on research and development for new applications in robots and unmanned aerial vehicles. The goal is to position the future API Media as a global reference point in acoustic infrastructure for both entertainment and industrial and automation use cases.
Dividend Spin-Out: What Datavault AI Is Signaling to the Market
By exploring a dividend spin-out rather than a straight asset sale, Datavault AI is indicating that it sees independent value potential in the Acoustic Sciences division. From the company’s perspective, the market is not fully reflecting, in its current valuation, the combined worth of the two businesses when viewed as a single entity.
With the creation of API Media as a listed company, the expectation is that:
- Datavault AI shareholders will receive shares of the new company as a dividend, maintaining exposure to both businesses;
- each division will be valued using metrics and multiples more closely aligned with its respective sector;
- governance will become more transparent, with boards and management teams dedicated to distinct strategies for data and for acoustics.
The company has engaged Houlihan Lokey as financial advisor and law firm Paul Hastings LLP as legal advisor for the transaction. It has also interviewed investment banks interested in participating in the deal and plans to announce its financial partner after negotiating terms deemed appropriate by the board.
Focus Allocation: Data Sciences Targets Tokenization and Cybersecure Infrastructure
With Acoustic Sciences moving to the future API Media, Datavault AI envisions a scenario in which its Data Sciences Division gains more freedom to deepen development of what the company describes as one of the most ambitious tokenization platforms in the market.
Management’s vision is to position Datavault AI as a leader in:
- cybersecure infrastructure for sensitive data and digital assets;
- tokenization of contracts, data, and information flows, with built-in governance and regulatory compliance;
- Web 3.0 platforms that use the Information Data Exchange (IDE) to enable secure, traceable, and monetizable data exchange;
- distributed architectures that combine edge computing and GPUs for real-time AI.
According to CEO Nathaniel T. Bradley, this sharpened focus should free the company to pursue what he describes as the goal of building the largest data tokenization platform on the planet. Management’s messaging compares Datavault AI’s market potential to that of major global exchanges and platforms, while consistently emphasizing that this is a strategic vision, not an assertion of equivalent value or status already achieved.
Recent Results from the Acoustic and Data Divisions
Acoustic Division at Major Sporting Events
The Acoustic Sciences division has been stacking up case studies at high-visibility events. Recent highlights cited by the company include:
- delivery of network, sound, and audio technology at the Kentucky Derby, with systems designed to cover the event with clarity, high definition, and operational robustness;
- implementation of solutions for the 2026 PGA Championship at Aronimink Golf Club, integrating audio and network technologies into the sporting environment.
These projects build on a track record in large sports and entertainment venues, where the division has been deploying technologies such as WiSA, ADIO, and Sumerian to deliver high-definition wireless audio to large audiences, reducing the need for complex cabling and improving the live experience for fans.
Data Division in Tokenization and Data Infrastructure Contracts
On the other side, the Data Division continues to advance in data tokenization and edge infrastructure solutions. Recent milestones disclosed by the company include:
- signing 750 million dollars in tokenization contracts in the first quarter of 2026, with approximately 77 million dollars in associated fees;
- contributing to the goal of reaching at least 200 million dollars in revenue for full-year 2026, in line with the company’s public guidance;
- expansion of secure edge computing infrastructure in major urban centers, ready to support AI applications, real-time data analytics, and mission-critical workloads.
This division has also been working on practical use cases such as:
- credential verification in both digital and physical environments;
- digital asset tracking and content licensing;
- secure data partnerships in sectors such as sports, entertainment, finance, and other industries.
Across all these use cases, the aim is to turn data into tangible business value, with liquidity, governance, and regulatory alignment.
AI and Data Infrastructure: SanQtum AI and Edge GPU
Datavault AI also positions itself as a high-performance AI infrastructure company. Its fleet of edge GPUs, running on the SanQtum AI platform from Available Infrastructure, distributes computing capacity across multiple U.S. metropolitan markets.
This model enables support for:
- real-time AI model inference;
- advanced, low-latency data analytics;
- secure computing environments for clients in financial services, sports, media, and life sciences.
The company also emphasizes that its architectures are quantum-ready, meaning they are designed to evolve toward future integration with quantum networks and compute resources as those technologies mature commercially.
Spin-Out, Governance, and Value Creation
Under the proposed structure, the separation between Acoustic Sciences and Data Sciences is not only operational but also related to licensing and compliance. Datavault AI acknowledges that each division faces distinct licensing requirements, regulations, and business models, and that independence could make managing these obligations more cost-effective and efficient.
At the same time, the spin-out is viewed internally as a way to:
- give Acoustic Sciences (the future API Media) a dedicated valuation aligned with the audio, events, and media markets;
- allow the Data Sciences Division to push ahead without distractions as it builds a large-scale AI and tokenization platform;
- strengthen transparency for investors, making it easier to analyze each business’s performance separately.
Management reiterates its belief in the potential on both sides: API Media’s culture of excellence with a strong focus on quality and customer experience, and Datavault AI’s ambition to build high-impact AI and data infrastructure with a long-term vision.
Risks, Uncertainties, and Market Data
Like any transaction of this scale, the proposed spin-out comes with a series of forward-looking statements. Datavault AI cautions that many of the expectations described — including the transaction structure, distribution of shares as a dividend, listing of API Media on NASDAQ, the timeline through the end of 2026, and anticipated strategic benefits — depend on factors that may not unfold as planned.
Key risks highlighted include:
- the possibility that the board decides not to move forward with the transaction;
- difficulties in negotiating and finalizing definitive agreements;
- failure to obtain regulatory or listing approvals for the new company;
- the tax structure of the transaction not occurring as planned;
- the anticipated benefits of the spin-out not materializing in practice;
- additional costs and management distraction during the process;
- market, technology, or regulatory changes affecting the AI, infrastructure, and digital asset sectors.
The company also notes that various market data points used in its communications are drawn from external sources, third-party reports, and internal estimates, all subject to inaccuracies and revisions. These figures are used as references for market size and positioning, but should not be viewed as exact or immutable measurements.
Finally, Datavault AI underscores that it holds rights to a set of trademarks, trade names, and copyrights, and that other brands mentioned, such as Dolby, belong to their respective owners. The absence of symbols such as ®, ™ or © in some references is for convenience only and does not diminish the legal protection of those marks.
Outlook for Datavault AI and API Media
The spin-out review puts Datavault AI in an interesting position at the intersection of AI and data infrastructure and advanced acoustic technologies. If the plan is approved and completed, the expectation is to see:
- API Media doubling down on wireless audio, spatial sound, interoperability standards, and applications in events, robotics, and drones;
- Datavault AI accelerating the build-out of a data tokenization and monetization platform, powered by edge GPUs, IDE, and cybersecure networks;
- investors tracking, through two separate stocks, the performance and evolution of each business thesis.
Until then, every new move by the board and management regarding the spin-out, the selection of investment banks, and the fine-tuning of each division’s strategy is likely to be closely watched by those following the next generation of AI infrastructure, data platforms, and large-scale acoustic experiences.
