Rekor Systems (REKR) Eyes $30B Deepfake Market with New AI Subsidiary

Rekor Systems, Inc. (NASDAQ:REKR) is one of the small-cap tech stocks on Wall Street's radar.

On October 22, 2025, the company announced it will enter the global deep-fake detection market by launching a new subsidiary named Rekor Labs, separate from its core roadway-intelligence business.

The company estimates that the global deep-fake detection market could exceed $30 billion over the next decade. According to the release, product development began in 2023 after government customers requested verification of mandated traffic videos, marking the transition toward audio, image and video authenticity detection.

Source: unsplash

The full product launch is expected in the first half of 2026, with proof-of-concept and alpha milestones reportedly completed. The new business will target five key verticals: news media and journalism, social-media platforms, government/security agencies, enterprise safety, and entertainment/film markets.

Rekor Systems, Inc. (NASDAQ:REKR) is a Maryland-based company that develops AI-enabled computer-vision and machine-learning platforms for roadway intelligence. The firm’s flagship solutions, such as the Rekor Discover®, Rekor Command® and Rekor Scout® products, aggregate mobility data and provide analytics to governments and businesses.

While we acknowledge the potential of REKR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None.