Key Highlights
- TaoWeave (TWAV) has entered into a Technology License and Distribution Agreement with Manako Labs, securing exclusive marketing and sales rights for Manako’s Physical AI solution throughout the United States and Canada.
- The company deployed $1 million into Manako through a SAFE agreement, representing its inaugural direct investment in an operational AI business.
- Agreement terms encompass revenue-sharing arrangements, referral compensation, and preferential rights on upcoming business opportunities.
- Manako received warrants from TaoWeave covering up to 300,000 shares, contingent upon achieving specific commercialization and technical development benchmarks.
- The Physical AI sector is valued at roughly $82 billion in 2025, with forecasts indicating potential growth to nearly $1 trillion by 2033.
On May 28, 2026, TaoWeave, Inc. (TWAV) revealed a Technology License and Distribution Agreement with Manako Labs, combining Manako’s advanced computer vision technology with TaoWeave’s established enterprise network across North America.
This partnership represents a fundamental transition in TaoWeave’s business approach — shifting from passive digital asset holdings like TAO tokens toward generating active, recurring revenue streams through Physical AI deployment.
The licensing arrangement grants TaoWeave non-exclusive rights to market, distribute, and sublicense Manako’s Score AI platform throughout U.S. and Canadian territories. Financial terms incorporate revenue-sharing provisions, referral compensation, and market development incentives.
TWAV stock declined 2.07% following the announcement.
Manako’s technology operates on Bittensor Subnet 44, transforming existing camera networks into real-time operational intelligence systems. The solution requires no hardware replacement, integrating seamlessly with current infrastructure across industrial facilities, logistics operations, retail locations, and critical infrastructure sites.
This compatibility represents a significant advantage for enterprise adoption — eliminating costly infrastructure overhauls while delivering enhanced analytical capabilities from existing systems.
Capital Deployment Details
In conjunction with the licensing arrangement, TaoWeave allocated $1 million to Manako through a Simple Agreement for Future Equity. This transaction marks the company’s first investment in an operating AI venture, underscoring a deliberate shift from treasury-focused cryptocurrency holdings.
TaoWeave additionally granted Manako warrants covering up to 300,000 shares. These securities are structured in multiple tranches, with vesting contingent upon meeting specific commercialization targets and Bittensor subnet development objectives.
The warrant package includes resale registration obligations, lock-up provisions, trading limitations, and maintains a 9.99% beneficial ownership ceiling.
TaoWeave’s previous entry into the Bittensor ecosystem positioned the company for exposure to emerging AI innovations. Manako, operating within this identical ecosystem, represented a logical progression for the company’s strategic evolution.
Recently, Manako secured first place at Start In Block, a competitive startup showcase during Paris Blockchain Week, emerging victorious from a field exceeding 1,000 applicants.
Physical AI Market Opportunity
Industry analysis referenced in the agreement values the Physical AI market at approximately $82 billion for 2025. Forward-looking estimates suggest the sector could approach $1 trillion valuation by 2033.
TaoWeave secured a right of first refusal on select future business opportunities within the agreement framework, alongside structured termination provisions and transition safeguards.
The partnership includes protective mechanisms for potential dissolution scenarios, providing TaoWeave with risk mitigation on its $1 million capital commitment.
TaoWeave’s present market capitalization stands at $5.01 million.
The stock’s average daily trading volume registers approximately 411,960 shares.
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