Datavault AI: The New AI Contender Backed by Big Funding

A quiet corner of the tech market has suddenly become the center of attention. Shares of Datavault AI (NASDAQ: DVLT), an artificial intelligence (AI) and data monetization company, have skyrocketed over 300% in the last 30 days, placing the stock on trending lists and capturing the interest of growth-focused investors.

For many, a surge of this magnitude raises a critical question: Is this a sustainable breakout or just a temporary, hype-driven rally? A closer look at the events driving this move reveals a rally built on a solid foundation. The company has recently secured a substantial capital infusion and a strategic technology partnership with a major industry player, signaling a significant shift in its operational and investment profile.

A Nine-Figure Deal Fortifies the Balance Sheet

For any small-cap technology company, securing adequate funding is a primary challenge. In late September 2025, Datavault AI announced a strategic investment agreement with Scilex Holding Company (NASDAQ: SCLX) for $150 million. This deal effectively addresses one of the most significant risks for investors in this space: the constant threat of cash burn and the potential for future stock offerings that can dilute the value of existing shares.

The investment, notably executed in Bitcoin, is structured in two parts. An initial tranche of approximately $8 million has already closed, with the remainder subject to shareholder approval. This capital is to be used for operations and serves as growth fuel earmarked for specific, high-potential projects. To put this into perspective, Datavault AI reported revenue of $1.74 million in the second quarter of 2025. This nine-figure investment represents a monumental increase in the resources at its disposal. According to the company, the funds will be used to:

• Build out a proprietary supercomputer infrastructure.
• Expand its independent data exchanges, with a strategic focus on the valuable biotech sector.

For investors, this infusion provides a long operational runway, allowing Datavault AI to execute its ambitious growth plans from a position of financial strength rather than necessity.

A Blue-Chip Seal of Approval

Days after securing its financial future, Datavault AI announced a move that provided an endorsement of its core technology. The company announced a multi-million-dollar resource commitment from International Business Machines (NYSE: IBM), a global leader in artificial intelligence. This partnership is a signal of deep validation from one of the most respected names in the tech industry, targeting a generative AI market that analysts project could add up to $4.4 trillion in annual economic value.

The commitment includes an estimated $5 million worth of professional services, providing Datavault AI with access to 20,000 hours of expertise from IBM's elite solution architects and AI engineers. This collaboration is designed to accelerate Datavault AI’s product roadmap by integrating its platform with IBM's respected watsonx.ai and watsonx.governance technologies. For a small company, this kind of third-party validation is invaluable. It suggests that after extensive due diligence, IBM sees significant potential in Datavault AI’s technology. This external seal of approval dramatically reduces the perceived technology risk for investors and elevates the company's credibility in a competitive market.

Immediate Execution: From News to Action

A key question for investors following major company announcements is "What's next?" Datavault AI provided a swift and tangible answer. On October 1, the company demonstrated its ability to immediately leverage its newfound momentum by signing a Memorandum of Understanding with Korea Aerospace University (KAU).

This strategic move leverages the company's patented VerifyU™ platform to enter the high-value aerospace sector. The partnership aims to pioneer digital credentialing for the industry, beginning with a pilot identity verification initiative in Korea. This development serves as immediate, tangible proof that the company's leadership is effectively converting its recent strategic wins into actionable business development. For investors, it is a key indicator of effective management, showing that the company is already unlocking new, global revenue opportunities.

Reassessing Valuation and What Lies Ahead

With these catalysts in place, Wall Street is taking notice. Analysts have assigned a consensus Strong Buy rating to the stock, with an average 12-month price target of $7.00. Set against a current market capitalization of approximately $233 million, this target implies substantial upside potential if the company executes its newly funded initiatives.

One notable metric is the stock's short interest, which stood at over 20% of the public float as of mid-September. While this indicates a portion of the market remains skeptical, it also introduces the potential for a short squeeze. If Datavault AI continues to deliver on its plans, traders who bet against the stock may be forced to buy shares to cover their positions, a dynamic that can amplify upward price movement.

Taken together, the recent events represent a fundamental inflection point. Datavault AI has successfully secured its financial future, gained a powerful technology endorsement from an industry leader, and demonstrated its ability to execute on its growth strategy. For investors, this combination of a fortified balance sheet, validated technology, and proven momentum has fundamentally improved the company's risk profile, making it a compelling name to watch in the evolving AI landscape.

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The article "Datavault AI: The New AI Contender Backed by Big Funding" first appeared on MarketBeat.