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France concludes global AI Action Summit, aims to become 3rd AI power after US and China; Artprice by Artmarket unveils 2025-2029 Strategic Plan and emerges as leader in AI art market intelligence with Intuitive Artmarket® AI

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PARIS, Feb. 12, 2025 /PRNewswire/ — As France recently hosted the Global AI Action Summit, Artprice by Artmarket – world leader in art market data for 28 years – has unveiled its 2025-2029 strategic roadmap and the first concrete successes of its Intuitive Artmarket® AI, consolidating its position as the global leader in AI-driven art market intelligence. Artprice by Artmarket.com est cotée sur le marché réglementé Euronext Paris.

On February 10 and 11, 2025, France received nearly 100 countries as part of the Global Summit for Action on Artificial Intelligence – “AI Action Summit” – using its fabulous Grand Palais to host heads of state and government, leaders of international organizations, small and large businesses, academics, researchers, non-governmental organizations, artists and various other representatives of civil society.

The summit was part of a broader AI Action Week starting February 6, featuring key events such as Scientific conferences on February 6–7 at École Polytechnique and a cultural weekend on February 8–9 organized by the French Ministry of Culture under Minister Rachida Dati, which included Artprice and its founder-CEO, thierry Ehrmann.

According to Rachida Dati, Minister of Culture: “The Cultural Weekend program, designed by the Ministry of Culture, aims to highlight, to as wide an audience as possible, the opportunities that artificial intelligence offers to creators. However, while we hope to make a veritable contribution to a new era of creativity, we need to keep a sharp focus on the challenges and risks that the cultural sectors face today.” 

Echoing this, Artprice, in its capacity as the World Leader in Art Market Information, previewed exclusive figures from its upcoming 30th Annual Art Market Report, produced in partnership with China’s Artron Research Academy of Arts.

This landmark report – eagerly anticipated by the global art world in March of each year – is distributed in 122 countries and 11 languages through Artprice’s 26-year partnership with Cision PR Newswire. This year’s edition highlights France as Europe’s leading art market by auction turnover, the world’s second market in terms of art auction transaction volumes, and the world’s fourth largest by total auction turnover (after the United States, China and the UK).

The AI summit provided France with a platform to showcase its AI expertise and the vibrancy of its business and research ecosystems, and to launch a new phase of its national AI strategy.

To this end, Clara Chappaz, Secretary of State for Artificial Intelligence and Digital Technology and the official host for this summit in the government of François Bayrou, identified three objectives: societal & cultural, economic and diplomatic.

In an interview in Les Échos on the eve of the summit, Clara Chappaz addressed a number of key issues: “At the White House in Washington on 21 January 2025, the United States – through the voice of President Donald Trump accompanied by Larry Ellison, co-founder of Oracle, Masayoshi Son, CEO of SoftBank, and Sam Altman, CEO of OpenAI – announced Stargate, a $500 billion AI plan, while China now has DeepSeek, a very efficient and low-cost model. 

Where does Europe stand in this field? AI is an opportunity for Europe. The Draghi report, released last September, was incisive.  It showed that Europe has reacted. I am not waiting for a European surge, it has happened. The European Commission’s recent Competitiveness Compass clearly prioritizes innovation. We’re in the race, we but must stay there.

Is there a surge in large groups, which are key in the adoption and diffusion of AI? During the summit, which will take place at the Grand Palais, the world’s largest companies and the world’s largest AI start-ups will come together. This has never happened before. This shows that everyone is around the same table and that silos are being broken down.”

Anne Bouverot, an AI expert, engineer, and special envoy of French President Emmanuel Macron, played a central role in preparing the AI Action Summit. She oversaw work on five main themes: AI for public interest, the future of work, innovation ecosystems, AI safety, and global AI governance. She also coordinates international efforts to establish open, democratic AI governance and founded the Abeona Foundation to promote responsible AI. She co-chairs the Paris-based AI & Society Institute.

Indeed, on February 9, during his special speech on France 2, President Emmanuel Macron declared that he wanted to make France a powerhouse of artificial intelligence, announcing 109 billion euros of investments in Artificial Intelligence in France by groups like MGX, BlackRock, Brookfield, Amazon, Microsoft, Fluidstack, Data4, Equinix, Digital Realty, Prologis, Evroc, Sesterce, Opcore, Mistral, BPI France, Infravia and Scaleway.

At the end of the Summit for Action on AI in Paris, co-chaired with India in the presence of its Prime Minister Narendra Modi, it was clear that President Macron wants to see France become “number 3 in the world”, behind the United States and China. The summit brought together nearly 100 countries, leaders of international organizations, researchers and representatives of civil society to define the foundations of global AI governance.

Among them were: United Nations Secretary-General António Guterres; U.S. Vice President J.D. Vance, who made a career in Silicon Valley; Chinese Vice Premier Ding Xuexiang; European Commission President Ursula von der Leyen; the German Chancellor, Olaf Scholz as well as the President of the United Arab Emirates, Mohamed Bin Zayed Al-Nahyan.

This summit was also attended by representatives of international organizations such as Ngozi Okonjo-Iweala, Director General of the WTO; Mathias Corman, Secretary General of the OECD; Fatih Birol, Director of the International Energy Agency; Moussa Faki, Chairperson of the African Union Commission; as well as numerous tech company executives such as Sam Altman, CEO of OpenAI; Google CEO Sundar Pichai; Arthur Mensch, CEO of Mistral AI; Xavier Niel, Founder of the Iliad group; Demis Hassabis, Director of Google DeepMind; Brad Smith, President of Microsoft.

There were also many scientists and experts like Yann Le Cun, AI pioneer and Scientific Director at Meta; Joëlle Barral, Researcher at Google DeepMind; Michael Jordan, Professor at the University of Berkeley, and, Nobel Prize winners like Geoffrey Hinton, considered one of the “fathers” of modern AI; journalist and Nobel Peace Laureate, Maria Ressa, and economist, Joseph Stiglitz.

A steering committee bringing together representatives from around thirty countries and international institutions as well as representatives from academia, businesses and civil society met five times to prepare the discussions for this Summit.

France plans to train 40,000 to 100,000 researchers by 2030 and build 35 data centers (including a €30–50 billion UAE-funded facility). It also plans to establish a Franco-European regulatory framework for AI.

Brookfield announced a €20 billion investment in French data centers, including a 1-gigawatt facility in Cambrai. This investment mainly targets the development of data centers, essential for training AI, as well as associated infrastructure, such as energy production. Among the major projects, a mega-data center will be built in Cambrai, in the north of France, with a maximum power of 1 gigawatt.

According to an official French government source, France is Europe’s top destination for foreign AI investments.

At the end of the summit, the creation of an observatory of the energy impact of artificial intelligence, led by the International Energy Agency (IEA), was formalized as well as a coalition for sustainable AI, which intends to bring together the main companies in the sector.

News and outlook for 2025:

Artprice by Artmarket reached a new milestone on January 9, 2025, with the success of its Intuitive Artmarket® AI and is now the world leader in AI for Art Market information

At the end of 2024, Artprice by Artmarket gave its high-end subscribers access to data learned by its Intuitive Artmarket® AI and its algorithms.

On January 9, 2025, Artprice by Artmarket consolidated its position as the global leader in AI-driven art market intelligence with the successful roll-out of its Intuitive Artmarket® AI. Today, with one month of hindsight, we already see that these subscriptions have become the preferred annual subscriptions in our high-end offer.

This spectacular development demonstrates that the 9.3 million customers and members of Artprice by Artmarket have accepted the advent of AI culture into the heart of our databases and are moving towards premium subscriptions that include Intuitive Artmarket® AI, with a corresponding impact on the growth of our recurring revenue (ARR). Over the coming years, Artprice will increase its research and results to a level never before reached in the art market for its clients and members, offering a whole range of new services and products.

Artprice was particularly interested in a DOMO Inc. study, (figures from which were published by Les Échos/Solutions ). DOMO uses an important index that scores the ability of a company to integrate AI into its processes. This index measures the processing of data/second per employee.

The average is a generation of 1.7 MB of data/second.

Following an IT audit by Mazars, Artprice by Artmarket was able to see for itself that each of its employees generates 35MB/second, i.e. 21 times more than the European average, which is perfectly consistent with Artprice’s Core Business as a major global publisher of professional databases and proprietary algorithms and world leader in information on the Art Market.

Artprice monitors the attitudes and policies of the Big Five Audit & Consulting firms towards AI. Clearly AI is ‘the major subject’. For example, Accenture and NVIDIA announcing an alliance under the name Accenture NVIDIA Business Group, to bring companies into the AI era.

Arnaud Naudan, President of BDO France reacted on Ecorama: “One of the two major challenges for our clients is artificial intelligence”. Deloitte, the leading Big 5 Auditor, created AI Institute “to bring together the brightest minds in the field of AI”. For KPMG: “Three quarters of French CEOs consider that their management team is aware of the benefits of Generative Artificial Intelligence to strengthen the competitiveness of their companies (CEO Outlook Study).

This cultural revolution is introducing a whole new vocabulary to the commercial world. But the processes and tools that make up AI are already scientifically at the very core of Artprice by Artmarket. Via this new vocabulary, Artprice’s clients and partners are discovering the unexplored riches of Artprice and the extraordinary depth of data that corresponds exactly to their needs.

In addition, Artprice by Artmarket has twice consecutively obtained the state label “Innovative Company” (a rare occurrence for companies listed on a regulated market), awarded by the Banque Publique d’Investissement (BPI) and it is pursuing its ambitions in this direction.

Artprice by Artmarket.com, drawing on the experience of its parent company Groupe Serveur – a pioneer of the Internet in Europe, legal databases, and the first computer-generated images since 1987 – has developed over these decades thousands of increasingly powerful and relevant proprietary algorithms with more than 180 data banks which allow it to set up its own Intuitive Artmarket® AI, in strict compliance with various countries’ legislations, particularly those regarding PDP and IP.

This was only possible through the targeted acquisition in 1999 by Groupe Server, then by Artprice, of innovative companies such as Xylogic, a Swiss company composed exclusively of top scientists (from CERN, WHO, etc.) who were considerably ahead of their time and who already pre-figured the solid beginnings and fundamentals of artificial intelligence (see Artmarket.com’s AMF reference document).

In the cozy world of large global publishers of professional databases that Artprice belongs to, it is vital for the long-term development of industries to integrate proprietary AI into core businesses. This is why Artprice by Armarket has taken a very significant lead since 1999 and made 2025/2029 the key period for the commercial launch of its a proprietary algorithmic AI, Intuitive Artmarket®.

According to thierry Ehrmann, Founder of Artprice and CEO of Artmarket.com (official certified Who’s Who In France biography: https://imgpublic.artprice.com/img/wp/sites/11/2024/02/2024_Biographie_thierry_Ehrmann_WhosWhoInFrance.pdf )

“By exploiting its hundreds of millions of anonymized proprietary logs, texts and tens of millions of artworks in its databases, Artprice by Artmarket algorithms are capable of identifying all the language used to describe the initial approach of an artist, his universe, his inspirations, the mediums used, his themes, his forms and volumes, etc.”

This precious data allows users to get closer to the 861,000 referenced artists with their biographies and certified data, beyond the classic academic visual criteria, thanks to the neural networks of the Intuitive Artmarket® AI.

Our Intuitive Artmarket ® AI can already calculate reliable price information and explore the traceability of an artwork, examining its auction results over time, using the repeated sales method that is specific to Artprice; but it is also capable of anticipating future value fluctuations of unique works.

It can also detect transversal artistic trends of extreme complexity which largely escape the academic, institutional, university and commercial worlds.

In this respect, an in-depth ‘spontaneous awareness’ study was prepared to measure the precise footprint Artprice has in the world of Art and Art History.

The study was conducted during the CIHA Lyon 2024, France – 36th world congress devoted to research in Art History with more than 70 countries and 1000 speakers, where Artprice was a committed patron of these Art History Olympiads which have been held every 4 years in a major city of the world since 1873.

In the study, Artprice ranks as the ‘top-of-mind’ database on the Art Market.

After several months of preparation, Artprice by Artmarket was able to be present during the entire congress, participating in conferences, ensuring a presence at the CIHA book fair and hosting a special evening event at its world headquarters located in the heart of its Organe Museum of Contemporary Art, the entity which manages the “Abode of Chaos” (dixit the New York Times).

In addition to ‘spontaneous awareness’, Artprice also tried to determine the level of ‘qualified awareness’.

This very qualitative study benefited from two exceptional factors: on the one hand, by physically questioning conference attendees from 70 countries, it avoided online or telephone questionnaires, the relevance of which is sometimes unreliable and cannot be truly verified. On the other hand, Artprice was able to interact directly with the registered and certified congress and conference attendees, taking note of their professions, specialties, positions, titles, diplomas, and institutions or universities.

We asked the following question: “Which databases on the Art Market do you know?”

Out of 378 delegates questioned, 325 cited Artprice first, i.e. 86%, clearly placing Artprice as the ‘top-of-mind’ art market database.

‘Top-of-mind’ awareness is the percentage of people whose first response identifies a particular brand, product, or service. It is both a spontaneous response and the first of their responses.

To return to the Intuitive Artmarket ® AI algorithms, they can help art galleries and auction houses set optimal prices for artworks based on various factors such as demand, rarity, and of course the notoriety of the artist concerned. In short, Intuitive Artmarket ® artificial intelligence offers significant potential to revolutionize the art market by improving access to information, personalizing the buyer experience, fighting counterfeiting and opening new creative perspectives.

The Intuitive Artmarket® AI works exclusively on an almost infinite scope of proprietary content, and is therefore protected under IP law, which gives users freedom from potential copyright obstacles and prohibitions. Intuitive Artmarket® AI therefore has no need to look elsewhere for data and/or responses to very specific requests from art market users.

This not only guarantees its sustainability, but also guarantees a considerable increase in Artprice by Artmarket.com revenue over time, via a growing volume of added-value subscriptions.

thierry Ehrmann, CEO of Artprice by Artmarket :

“Over the last two decades Artprice has been recording, observing and inducing hundreds of millions of anonymized human behaviors relating to the art market which, by nature, is infinitely complex because artworks are all different, all singular, and abstract notions of beauty depend on human emotion.”.

This reinforced algorithmic learning has allowed Artprice to create an unique AI model specific to the art market that will constitute the 2025/2029 growth driver for Artprice by Artmarket.

No less than 95% of companies in the S&P 500 plan to build their growth on Artificial Intelligence.

According to the top Anglo-Saxon financial analysts – who are one step ahead of Europe on this subject – the only economically viable model that does not expose the company (whatever its size) to constant legal attacks is an AI based on an extremely well-defined economic segment.

The economic segment of AI is based on five pillars that all relate to the history of IT: Big Data, Deep learning, Data Mining, Proprietary Algorithms, and, of course, a Core Business based on the sale of ultra-qualified information, with standardization of data for all processes.

The information produced by Artprice by Artmarket plays a vital role and the company has full intellectual property rights over all of these five pillars, with copyright and related rights confirmed over all algorithms, databases, Big Data, machine learning (deep learning) and neural networks.

In sum, the AIs that will triumph with a very significant economic gain, without industrial or legal risk, are those created by economic entities that own, in full intellectual property, all the different stages of the proprietary AI in a defined market segment where high added value information, with a high cost, is vital. And this is exactly the case of the Intuitive Artmarket ® AI developed by Artprice by Artmarket.com, World Leader in Art Market information.

Progress of AI Intuitive Artmarket® 2025-2029 master plan: after Blind Spot AI®, Artprice launches its 3rd AI,  AIDB* Search Artist®, (Artificial Intelligence Data Bases).

In the 2025-2029 master plan, Artprice by Artmarket has planned the creation of approximately 20 specific AIs which each represent the sum of the knowledge of each Artprice department. These are Econometrics & Statistics for Art Market Indices, Artist Biographies, Documentary Collections of Manuscripts & Catalogs, Databases, Editorial, Intranet Auctioneers, ArtMarketInsight press agency, Annual Art Market Reports, IT, SGE (Search Generative Experience), Data Analyst & Scientist, R&D, Marketing, Customer Service, Multi-users & Major accounts, Standardized Marketplace, Artist & Creative Entities Communications department , Institutional & Financial Communication, Legal, Financial and Management… in other words, an AI potentially specific to each department.

One of Artprice’s key approaches to AI was to avoid fuzzy set theory, also known as ‘fuzzy logic’, which is a method based on ‘degrees of truth’ rather than the usual Boolean logic system based on 0 or 1. This amounts to searching, in Boolean logic, for unknown but nonetheless indisputable underlying elements.

Artprice has developed, among other things, a unique approach to its Intuitive Artmarket® AI which it calls Blind Spot AI®. This revolutionary AI concept, created by Artprice, searches the blind spots between structured data.

In Art History, our Blind Spot AI® would be the equivalent to Marcel Duchamp’s infrathin concept, which is an aesthetic and scientific notion designating an imperceptible difference or interval, sometimes only imaginable but very real, between two identified phenomena.

This Duchampian theory came from work with the famous mathematician Henri Poincaré, author of Science and Hypothesis, a work on the importance of using models in science. It is plausible that this work inspired Einstein for his thinking which led to the founding article of the theory of special relativity, published in 1905.

Indeed, among the major global publishers of databases, we are fully conscious that there is no room for mistakes as the relationship of trust established with users cannot tolerate approximate or erroneous data.

Artprice is demonstrating that it is possible to produce unexplored data with its proprietary AI and its Blind Spot AI ® process, without undermining the trust that has, for 27 years, been based on indisputable, reliable, exhaustive and long-lasting data, essential to Artprice’s clients, namely Experts, Auctioneers / Auction Houses, Art Dealers, Gallerists, Institutions, Museums, Insurance Companies, Private Bankers, Banks, Asset Managers and Collectors.

Considering the sometimes very high financial values of artworks, we are perfectly aware that our loyal and recurring Artprice clientele will not tolerate the slightest error.

In its beta test at the end of 2024, Artprice by Artmarket provided proof that having stabilized the question of alignment (the ‘alignment’ problem) in a decade – which is essential for the successful completion of the genesis and then the construction of its Intuitive Artmarket® AI – the high added value data produced by its Intuitive Artmarket® AI respects the ethics, values, expectations and human sensitivities that are specific to the Artprice by Artmarket group, its clients and to the intangible and centuries-old rules of the art market.

During 2025, Artprice, with its AIDB Search Artist® will allow its 9.3 million customers and members to search for an artwork via a paid service, based on a photograph of the work, (similar to Google Lens), to find the same or similar works on Artprice, with the artist’s data.

Our proprietary Artprice AI application, AIDB Search Artist®, is the result of seven years of development, taking into account the 210 million images or engravings of works of art (with a hard core of 18 million tokenized images) from 1700 to the present day from the largest collection in the world of physical manuscripts and art market sales catalogs, a veritable ‘Library of Alexandria‘, that belongs to Artprice by Artmarket and has been annotated and analyzed by our historians and experts.

Artprice’s AIDB Search Artist® AI application could only be designed by having full control over all the processes and copyrights, with manual learning, in the early years, by Artprice specialists to train a deep-learning application, allowing research on an artwork, which no other specialized company has succeeded in achieving to date.

In fact, the thirty companies that were confronted with this exercise limited it to their non-exhaustive content where the references rarely exceeded 20,000 artists, whereas Artprice lists 861,000. Furthermore, in many cases, the reproduction rights of the artists were not honored.

In the context of Intellectual Property, artists’ rights are frequently absent from AI and are often victims of copyright violations. That is why Artprice pays for the reproduction rights of the artists it references through 54 copyright societies in different countries.

A fourth AI tool will be based on the recognition and expertise of the signatures and monograms of artists from the 4th century to the present day: AIDB signatures & monograms® by Artprice.

It has been trained using the three largest global databases of signatures and monograms, acquired by Artprice over the past 28 years: Caplan & Creps (USA), Sound View Press (USA), Editions Van Wilder (Europe), Enrique Mayer (Switzerland) [see Artmarket.com reference document].

Progress of the 2025 Intuitive Artmarket® AI master plan, concerning investments in NVIDIA’s Project DIGITS

Artprice by Artmarket has fully approved the technological concept and resulting legal solution of NVIDIA’s Project DIGITS.

Indeed, this compact and energy-efficient box format represents a genuine revolution. It will allow Artprice to equip all of its employees with Project DIGITS boxes within the framework of production, knowledge and expertise. Everything will be connected exclusively to the Artprice by Artmarket’s Intranet via a DMZ network. 

With Project DIGITS, users can develop and run inference on models using their own desktop system, then seamlessly deploy the models to exclusive Artprice-owned cloud or data center infrastructure.

According to Jensen Huang, founder and CEO of NVIDIA,”AI will be mainstream in every application for every industry. With Project DIGITS, the Grace Blackwell Superchip comes to millions of developers. Placing an AI supercomputer on the desks of every data scientist, AI researcher and student empowers them to engage and shape the age of AI.”

Likewise, all the data generated by Artprice’s numerous proprietary AIs will only be generated from these 180 proprietary data banks, which significantly limits the phenomenon of ‘hallucination’ specific to AI. Lastly, the control of methodological biases is much better managed, because all of the calculation and reflection chains will rely entirely on the Artprice databases and its global Intranet which has been connecting to its 7,200 partner Auction Houses for 28 years.

According to Artprice’s analysis, NVIDIA’s Project DIGITS is based on a singular innovation: the GB10 Grace Blackwell chip. The box using this chip provides a computing power reaching 1 petaflop, or the equivalent of 1000 operations per second in FP4 precision. Finally, its real strength remains in its ability to run AI models with up to 200 billion parameters – a performance that rises to 405 billion when two units are connected together.

The device comes with Linux-based NVIDIA DGX OS.

Artprice by Artmarket, since its inception, has developed all of its infrastructures and databases under Linux and therefore has perfect mastery of the Linux Kernel to integrate a Project DIGITS for each Artprice employee, whatever their function.

According to Artprice, this strategy can only be a winner. By individually offering this type of equipment with colossal power at a competitive price, NVIDIA meets Artprice’s specifications and thus confirms its position as the leader in accelerated computing.

Artprice is reinforced by its analysis of Deepseek-R1

Artprice by Artmarket monitors and analyzes all the main LLMs (Large Language Models), particularly those in Open Source.

Since its irruption in January 2025, Artprice has naturally analyzed Deepseek R1 in Open Source – an open weighted model of 671 billion parameters which performs comparably to OpenAI, but at a 90 to 95% lower cost by distilling 6 Llama and Qwen models.

Now continuing its work in this direction, DeepSeek has released DeepSeek-R1, which uses a combination of RL and supervised fine-tuning to handle complex reasoning tasks and match the performance of Open AI o1.

In testing, DeepSeek-R1 scored 79.8% on the AIME 2024 math tests and 97.3% on the MATH-500. It also scored 2,029 on Codeforces, better than 96.3% of human programmers. On the other hand, Open AI’s o1-1217 obtained 79.2%, 96.4% and 96.6% respectively on these tests. It also demonstrated strong general knowledge, with an accuracy of 90.8% on the MMLU, just behind o1’s 91.8%.

For Artprice by Artmarket, the heated and controversial debates surrounding Deepseek simply confirm the importance of Artprice’s work and analysis on the real measured needs for its Intuitive Artmarket® AI.

The decisive parameter that validated Deepseek’s impact was the ‘Black Monday’ on Wall Street on January 27, 2025, which saw over a $1 trillion withdrawn from American tech stocks. The Western world was largely surprised to discover the language models of this start-up, whose performances are comparable with those of American AI leaders (OpenAI, Anthropic, Meta), but at an infinitely lower cost to use.

On this ‘black day’ for the tech industry, one company fared better than the others: Apple. Its shares increased by 3.18%, even though the company is also concerned with generative artificial intelligence via its Apple Intelligence suite. One of the reasons for this resistance is that DeepSeek’s work validates several avenues chosen by Apple.

For the Artprice group, limiting the energy costs of AI is a reality that could inspire the world of large publishers of vertical data banks to which it belongs.

Apple Intelligence’s vision reinforces Artprice’s convictions

Our reasoning is similar to Apple Intelligence where Tim Cooks, Apple’s CEO, has perfectly understood that his clients are above all creators and artists who want to work on their own while avoiding regular plundering by third parties. At Artprice we have equipped employees in our Artistic Direction department with the M4 chips equipped with Apple’s Neural Engine while awaiting Apple’s AI Chip, developed with Broadcom, known for the time being as “Baltra”.

Artprice analyzes the Peak Data question and delivers its analysis of the Internet ecosystem

For Artprice, Elon Musk’s warning, echoing predictions of Ilya Sutskever, former scientific chief of OpenAI, who from 2022 warned of the imminence of a “peak data” moment, is a very concrete reality. This concept, borrowed from “peak oil” theory, suggests that the amount of quality data available for training AI, primarily from the web and online human activity, has peaked and is beginning to decline.

Artprice considers that Peak Data, Slop and the gradual destruction of free websites constitute a threat to the Internet ecosystem. Likewise, “autophagy”, where AI feeds on AI, can lead to a collapse of models, which produce responses that initially become less and less original and relevant, and then end up having no meaning, according to an article published at the end of July 2024, in the scientific journal Nature.

Concretely, with the use of this type of data called “synthetic data” (because it is generated by machines), the sample from which the AI models draw to provide their answers loses in richness.

The analysis by Eric Schmitt, former CEO of Google, validates Artprice’s economic model for AI.

In a conference at Stanford University, Eric Schmitt showed that he agrees with Artprice’s reasoning, where the virtuous economic model of AI can only be achieved through paid models, due to the simple fact that AI requires, for its training, high value-added data which is protected by copyright and other related rights. This has been Artprice’s Core Business for 28 years.

In addition, the former Google CEO indicates that the cash burn of AI development is so high that a company will need a paid economic model, since the data from the free Internet will be ‘exhausted’ by peak data.

About the EU AI Act and Intellectual Property regarding global AI

According to Perplexity AI, intellectual property case law related to AI is still evolving, but several key principles are emerging domestically and internationally.

The AI Act protects the rights of authors against the use of their works by generative AI systems through several key measures:

– Obligation of transparency: Generative AI providers must indicate whether the data used to train their models is protected by copyright. They must also provide a detailed summary of the protected works exploited, in accordance with Article 28 ter of the AI Act.

– Right of opposition (opt-out): Authors can refuse the use of their works for training AI by exercising their right of opposition. This mechanism is provided for by the 2019 European Copyright Directive and reinforced by the AI Act, although it remains difficult to apply in practice due to the lack of control over the actual uses of works online.

– Traceability and accountability: The AI Act imposes traceability requirements to ensure that AI developers inform users and rights-holders about the origin of the data used, allowing for better rights management and increased transparency.

– Legal framework: The regulation aims to balance innovation and protection of authors by establishing mechanisms such as collective management, which facilitates the consultation of authorizations and ensures fair remuneration to creators for the commercial use of their works.

These provisions aim to protect the rights of authors while encouraging ethical and transparent use of generative AI technologies.

According to Artprice, within the framework of Europe’s AI Act and the creation of an EU AI Office, each jurisdiction will face numerous new obligations within sometimes very short deadlines. In total, Artprice has identified 88 responsibilities at the national level that are regularly discussed in its Boards of Directors and its Internal Control meetings.

Lastly, during the recent AI Action Summit, President Emmanuel Macron stated “We will continue to defend copyright and similar rights. We will continue to preserve human creativity. AI will bring lots of revolutions, lots of things, but creativity remains human. AI is, first of all, a true technological and scientific revolution for progress and in the service of progress. This revolution must be conducted in the service of humanity, to improve lives.”

How is the explosion of artificial intelligence disrupting today’s world and particularly the art market? How to measure it in the face of the energy transition that is also a major issue?

For thierry Ehrmann, Founder of Artprice and CEO of Artmarket.com:

“We live in a world where computing power doubles every six months. Gordon Moore’s law, (Founder of Intel), which historically suggested that the number of transistors on a chip doubled every eighteen months at equal price, has been surpassed by new ‘scaling laws’. From now on, the acceleration of generative AI could be measured by a formula that I suggest as ‘token (digital asset) per Euro and per watt’, that is to say a new unit of measurement corresponding to the way in which AI processes a request for information, taking into account each euro spent and each watt actually consumed.

We are certain that it would be extremely dangerous for LLM publishers to ignore the carbon impact. It is simply excessive. Deepseek R1, but also in recent days a whole series of researchers from the Anglo-Saxon world, have all confirmed that it is possible to design LLMs with much more energy-frugal servers. It is strange that in the midst of the energy transition, this subject has been largely side-stepped.

We must remember with humility that the human brain’s language functioning is beginning to be well imitated by AI, while those of mathematics and geometry remain largely misunderstood.

Furthermore, seen as an integrated circuit, the human brain, from the scientific point of view, is to this day inimitable.

Even if we begin to understand its algorithms and reproduce them in very high capacity servers with several hundred billion parameters, we still cannot reproduce them with the same energy efficiency. Where the human brain weighs 1.4 kg and operates with only 30 watts, the AI giants in the USA are racing towards nuclear power plants and gigantic dams… Indeed, Microsoft is relaunching the Three Mile Island nuclear power plant in the state of Pennsylvania in the USA. Meanwhile, the human brain, with its capacity for imagination and creativity, remains unbeatable by the unit of measurement of AI which is the “token per Euro and per watt”.

According to thierry Ehrmann, Founder of Artprice & Groupe Serveur and CEO of Artmarket.com, the Group’s line of action for its AI is very simple:

“There cannot be artificial intelligence without human intelligence.” This notion underlines the importance that our group attaches to the interaction between human intelligence and artificial intelligence in the development of its own AI, called Intuitive Artmarket®. “This philosophy was firmly anchored in our group when we started the beginnings of AI in 1987 with shape recognition algorithms that were at the heart of the Lumière® stations (artificial computer-generated images) designed by Groupe Serveur and based on advanced techniques such as 3D rendering, light-matter simulation, vector modeling and raster mode.”

Analysis of Perplexity AI by Artprice and Groupe Serveur

All the dozens of subjects and studies of AI conducted over many years by Artprice, as well as the history of the development of its Intuitive Artmarket® AI, Blind Spot AI® as a revolutionary concept in AI, of which Artprice is the author, are available on: https://www.perplexity.ai/ 

Groupe Serveur, main shareholder of Artprice, which was at the origin of the first Linux search engine in France Netscan in the 1990s, considers, through its expertise of more than 38 years, that Perplexity AI has emerged as the best solution at this point in the artificial intelligence scene as a sophisticated search engine and chatbot. It is by combining these two roles that it facilitates a deep understanding of natural language.

Aravind Srinivas, Principal Founder and CEO of Perplexity, co-founded with Denis Yarats, Johnny Ho and Andy Konwinski have managed to make Perplexity AI a potential competitor for Google. In 2025,  Deep Web researchers use it as their main working tool.

The initiative behind Perplexity AI motivated the development of a conversational engine that can answer various questions in real time. This gives it, according to Artprice and Groupe Serveur, an undeniable competitive advantage in the field of AI, by scrupulously respecting copyright and related rights when displaying its sources.

By investing in technical advances, Perplexity AI has built an architecture that uses modern neural approaches. This allows for better interpretation and management of complex language-related tasks. The community of search engine professionals such as SEO consultants, web SEOs and creative netlinkers who work with SE algorithms is predominantly in favor of Perplexity AI according to opinions collected by Artprice and Groupe Serveur in January 2025.

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Find out more about our services with the artist in a free demonstration: https://artprice.com/demo

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Artmarket.com is listed on Eurolist by Euronext Paris. The latest TPI analysis includes more than 18,000 individual shareholders excluding foreign shareholders, companies, banks, FCPs, UCITS: Euroclear: 7478 – Bloomberg: PRC – Reuters: ARTF.

Watch a video about Artmarket.com and its Artprice department: https://artprice.com/video

Artmarket and its Artprice department were founded in 1997 by thierry Ehrmann, the company’s CEO. They are controlled by Groupe Serveur (created in 1987). cf. the certified biography from Who’s Who In France©:

https://imgpublic.artprice.com/img/wp/sites/11/2025/02/2025-Biographie_de_Thierry_Ehrmann-Who-s-Who-In-France.pdf

Artmarket is a global player in the Art Market with, among other structures, its Artprice department, world leader in the accumulation, management and exploitation of historical and current art market information (the original documentary archives, codex manuscripts, annotated books and auction catalogs acquired over the years) in databanks containing over 30 million indices and auction results, covering more than 863,000 artists.

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https://www.prnewswire.com/news-releases/artmarketcom-artprice-and-cision-extend-their-alliance-to-119-countries-to-become-the-worlds-leading-press-agency-dedicated-to-the-art-market-nfts-and-the-metaverse-301431845.html

Artmarket.com makes available to its 9.3 million members (members log in) the advertisements posted by its Members, who now constitute the first global Standardized Marketplace® for buying and selling artworks at fixed or auction prices (auctions regulated by paragraphs 2 and 3 of Article L321.3 of France’s Commercial Code).

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Artmarket, with its Artprice department, has twice been awarded the State label “Innovative Company” by the French Public Investment Bank (BPI), which has supported the company in its project to consolidate its position as a global player in the art market.

Artprice by Artmarket publishes its 2024 Contemporary Art Market Report:

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whose head office is the famous Museum of Contemporary Art Abode of Chaos dixit The New York Times / La Demeure of Chaos:

https://issuu.com/demeureduchaos/docs/demeureduchaos-abodeofchaos-opus-ix-1999-2013

La Demeure du Chaos/Abode of Chaos – Total Work of Art and Singular Architecture.
Confidential bilingual work, now made public: https://ftp1.serveur.com/abodeofchaos_singular_architecture.pdf

L’Obs – The Museum of the Future: https://youtu.be/29LXBPJrs-ohttps://www.facebook.com/la.demeure.du.chaos.theabodeofchaos999 (more than 4.1 million subscribers)https://vimeo.com/124643720

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Technology

AudioEye Reports Record Third Quarter 2026 Results

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Third quarter GAAP net income profitability of $1 million with expectation of increased profitability in the fourth quarter

Third quarter adjusted EBITDA up 58% year over year, and the fourth quarter expected to be up 56% year over year

Sequential annualized fourth quarter revenue growth expected of approximately 20%

TUCSON, Ariz., Oct 26, 2026 /PRNewswire/ — AudioEye, Inc. (Nasdaq: AEYE) (“AudioEye” or the “Company”), an industry-leading digital accessibility company, reported financial results for the third quarter ended September 30, 2026.

“Starting in 2025 we set an aspirational goal of producing 30-40% annual growth over three years in adjusted EBITDA and adjusted EPS. In the second year, we are on track to exceed this goal with approximately 50% year-over-year growth while also generating GAAP profitability in the third quarter. In Q3 gross margins also improved by over 550 basis points to 83%, with an adjusted gross margin of 88%. We are increasing adjusted EBITDA guidance, and we now expect to generate over $17 million of annualized adjusted EBITDA in the fourth quarter with continued GAAP profitability. We also expect to generate significant cash going forward and recently announced a stock repurchase program of $15 million, which represents 15% of the outstanding shares at current prices,” said Kelly Georgevich, Chief Executive Officer of AudioEye. “The business is strong, and we expect annualized sequential revenue growth of approximately 20% in the fourth quarter, contributing to increased operating leverage.”

Georgevich continued, “In October, we launched two new AI products, Agentic Audits and the AudioEye SDK MCP, both powered by AudioEye Intelligence, our proprietary dataset built from more than one million human reviews over a decade. We expect that these new tools will improve our industry leading legal protection rate even further.”

Third Quarter 2026 Financial Results

Total revenue increased 7% to a record $11.0M from $10.2M in the same prior year period. During 2026, the Company has reduced its emphasis on non-recurring revenue to focus on growing Annual Recurring Revenue (“ARR”), which grew 12% in the third quarter over the same prior year period.Gross profit increased to $9.1M (83% of total revenue) from $7.9M (77% of total revenue) in the same prior year period. The increase in gross profit was driven by higher sales and efficiencies including AI use.Adjusted gross margin was 88% in the third quarter of 2026 compared to 83% in the same prior year period. Adjusted gross margin is defined as gross margin adjusted for non-cash items such as stock-based compensation and depreciation and amortization expenses in cost of revenue.Operating expenses were $7.8M, a decrease of 5% from the comparable prior year period. The decrease was primarily due to lower sales and marketing expenses as well as reduced research and development expenses driven by AI efficiencies.Net income was $1.0M, or $0.08 per diluted share, compared to a net loss of $(0.6M), or $(0.04) per diluted share, in the same prior year period. The change was primarily due to higher gross profit and lower operating expenses.Adjusted EBITDA was $3.9M, and adjusted EPS was $0.30 per diluted share, compared to adjusted EBITDA of $2.5M and adjusted EPS of $0.19 per diluted share in the same prior year period. For Q3 2026, the adjusted EBITDA and adjusted EPS results reflect adjustments primarily for stock-based compensation expense, depreciation and amortization, litigation expense, and interest expense.ARR as of September 30, 2026 increased sequentially to $43.3M from $42.3M as of June 30, 2026.At September 30, 2026 the Company had $9.3M in cash and cash equivalents.

Other Updates

On October 20, 2026, AudioEye announced that its Board of Directors authorized the repurchase of up to $15 million of the Company’s outstanding common stock through October 18, 2027. The new program replaces the Company’s prior share repurchase authorization and is expected to be funded with working capital and cash from operations.On October 8, 2026, AudioEye launched two new AI products, Agentic Audits and the AudioEye SDK MCP, both powered by AudioEye Intelligence, the Company’s proprietary accessibility dataset built from over one million human reviews across more than 100,000 sites. Agentic Audits deploy an AI agent that navigates a site the way a person would and can find up to 50% more high-severity issues than automation alone, while the SDK MCP brings AudioEye Intelligence directly into the AI coding tools developers already use.On September 30, 2026, AudioEye published research showing that leading AI coding tools failed to build accessible websites, with 91% of the issues found rated medium or high severity.On September 24, 2026, AudioEye published research showing that AI agents completed up to 68% fewer tasks and used 43% more tokens on average on inaccessible websites, demonstrating that digital accessibility is the foundation for AI readiness.On August 27, 2026, AudioEye released UK findings from its 2026 Digital Accessibility Index, which scanned over 14,400 pages across 475 UK websites and found an average of 66 accessibility issues per page, with AI search increasingly routing users to less accessible interior pages.As of September 30, 2026, AudioEye had approximately 130,000 customers, up 7,000 year-over-year from September 30, 2025, driven by increases in both the Partner and Marketplace channel and Enterprise channel.

Financial Outlook
AudioEye expects revenue of between $11.4M and $11.6M for the fourth quarter of 2026, which is expected to result in revenue of between $43.6M and $43.8M for the full year 2026. The Company expects adjusted EBITDA of between $4.2M and $4.4M for the fourth quarter of 2026, which raises expected full year 2026 adjusted EBITDA to between $13.4M and $13.6M, representing approximately 50% year-over-year growth. The Company expects adjusted EPS of between $0.32 and $0.33 per share for the fourth quarter of 2026 and at least $1.04 per share for the full year 2026.

Conference Call Information
AudioEye management will hold a conference call today, October 26, 2026, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed by a question-and-answer period.

Date: Monday, October 26, 2026
Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
U.S. dial-in number: 877-407-8289
International number: 201-689-8341
Webcast: Q326 Webcast Link

Please call the conference telephone number 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.

The conference call will also be webcast live and available for replay via the investor relations section of the Company’s website. The audio recording will remain available via the investor relations section of the Company’s website for 90 days.

A telephonic replay of the conference call will also be available after 7:30 p.m. Eastern Time on the same day through November 9, 2026 via the following numbers:

Toll-free replay number: 877-660-6853
International replay number: 201-612-7415
Replay passcode: 13763375

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

About AudioEye
AudioEye exists to ensure the digital future we build is accessible for people with disabilities and AI agents. AudioEye’s comprehensive solution for over 130,000 customers combines industry-leading AI automation technology with expert fixes informed by the disability community. This powerful combination delivers industry-leading protection against lawsuits and readiness for AI agents. With 25 US patents, AudioEye’s solution includes 24/7 accessibility monitoring, automated WCAG issue testing and fixes, expert testing, developer tools, and legal protection, empowering organizations to confidently create accessible digital experiences for all.

Forward-Looking Statements
All statements in this press release about AudioEye’s expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance are not historical facts and are “forward-looking statements” as that term is defined under the federal securities laws. Forward-looking statements are often, but not always, made through the use of words or phrases such as “believe”, “anticipate”, “should”, “confident”, “intend”, “plan”, “will”, “expects”, “estimates”, “projects”, “positioned”, “strategy”, “outlook” and similar words. You should read the statements that contain these types of words carefully. Such forward-looking statements contained herein include, but are not limited to, statements regarding future cash flows of the Company, anticipated contributions from new sales channels, long-term growth prospects, opportunities in the digital accessibility industry, our revenue, adjusted EBITDA, adjusted EPS and ARR guidance, and our expectation of investments in marketing and sales. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what is expressed or implied in such forward-looking statements, including the variability of AudioEye’s revenue and financial performance; sales channels and offerings; product development and technological changes; the acceptance of AudioEye’s products in the marketplace; the effectiveness of our integration efforts; competition; inherent uncertainties and costs associated with litigation; and general economic conditions. These and other risks are described more fully in AudioEye’s filings with the Securities and Exchange Commission. There may be events in the future that AudioEye is not able to predict accurately or over which AudioEye has no control. Forward-looking statements reflect management’s view as of the date of this press release, and AudioEye urges you not to place undue reliance on these forward-looking statements. AudioEye does not undertake any obligation to update such forward-looking statements to reflect events or uncertainties after the date hereof.

About Key Operating Metrics
We consider annual recurring revenue (“ARR”) as a key operating metric and a key indicator of our overall business. We also use ARR as one of the primary methods for planning and forecasting overall expectations and for evaluating, on at least a quarterly and annual basis, actual results against such expectations.

We manage customers through two primary channels, Enterprise and Partner and Marketplace. Enterprise channel consists of our larger customers and organizations, including those with non-platform custom websites, who generally engage directly with AudioEye sales personnel for custom pricing and solutions. This channel also includes federal, state and local government agencies. The Partner and Marketplace channel consists of our CMS partners, platform & agency partners, authorized resellers and our marketplace. This channel serves small and medium sized businesses who are on a partner or reseller’s web-hosting platform or who purchase an AudioEye solution from our marketplace.

We define ARR as the sum of (i) for our Enterprise channel, the total of the annualized recurring fee at the date of determination under each active contract, plus (ii) for our Partner and Marketplace channel, the annual or monthly recurring fee for all active customers at the date of determination, in each case, assuming no changes to the subscription, multiplied by 12 if applicable. Recurring fees are defined as revenues expected to be generated from services typically offered as a subscription service or annual service offering such as our automation and platform, periodic auditing, human-assisted technological fixes, legal support and professional service offerings and other services that reoccur on a multi-year contract. This determination includes both annual and monthly contracts for recurring products. Some of our contracts are terminable prior to the expected term, which may impact future ARR. ARR excludes non-recurring fees, which are defined as revenue expected to be generated from services typically not offered as a subscription service or annual service offering such as our PDF remediation services business, one-time website and mobile application reports, and other miscellaneous services that are offered as non-subscription services or are expected to be one-time in nature.

Use of Non-GAAP Financial Measures
From time to time, we review adjusted financial measures that assist us in comparing our operating performance consistently over time, as such measures remove the impact of certain items, as applicable, such as our capital structure (primarily interest charges), certain non-cash items, including stock compensation and depreciation and amortization expense, and other expenses that do not relate to our core operations, including significant transaction and litigation-related expenses and other costs that are expected to be non-recurring. In order to provide investors with greater insight and allow for a more comprehensive understanding of the information used in our financial and operational decision-making, the Company has supplemented the consolidated financial statements presented on a GAAP basis in this press release with the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted share (adjusted EPS) and Adjusted gross margin.

These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of Company results as reported under GAAP. The Company compensates for such limitations by relying primarily on our GAAP results and using non-GAAP financial measures only as supplemental data. We also provide a reconciliation of non-GAAP to GAAP measures used. Investors are encouraged to carefully review this reconciliation. In addition, because these non-GAAP measures are not measures of financial performance under GAAP and are susceptible to varying calculations, these measures, as defined by us, may differ from and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings (Loss) per Diluted Share
We define: (i) Adjusted EBITDA as net income (loss), plus interest expense, plus depreciation and amortization expense, plus stock-based compensation expense, less change in fair value of contingent consideration, plus certain litigation expense, plus certain acquisition expense, plus certain severance expense, plus loss on disposal or impairment of long-lived assets, plus loss on extinguishment of debt, and plus lost deposit on alternative financing; (ii) Adjusted EBITDA margin as Adjusted EBITDA as a percentage of GAAP revenue; and (iii) Adjusted earnings (loss) per diluted share (EPS) as net income (loss) per diluted common share, plus interest expense, plus depreciation and amortization expense, plus stock-based compensation expense, less change in fair value of contingent consideration, plus certain litigation expense, plus certain acquisition expense, plus certain severance expense, plus loss on disposal or impairment of long-lived assets, plus loss on extinguishment of debt, and plus lost deposit on alternative financing, each on a per share basis. Adjusted earnings per diluted share includes incremental shares in the share count that are considered anti-dilutive in a GAAP net loss position.

Adjusted Gross Margin
We define Adjusted gross margin as gross profit, plus stock-based compensation expense and depreciation and amortization expense allocated to cost of revenue, expressed as a percentage of total revenue.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted share, and Adjusted gross margin are used to facilitate a comparison of our operating performance on a consistent basis from period to period and provide for a more complete understanding of factors and trends affecting our business than GAAP measures alone. All of the items adjusted in these calculations are either recurring non-cash items or items that management does not consider in assessing our ongoing operating performance. In the case of the non-cash items, such as stock-based compensation expense and valuation adjustments to assets and liabilities, management believes that investors may find it useful to assess our comparative operating performance because the measures without such items are expected to be less susceptible to variances in actual performance resulting from expenses that do not relate to our core operations and are more reflective of other factors that affect operating performance. In the case of items that do not relate to our core operations, management believes that investors may find it useful to assess our operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.

Adjusted EBITDA is not a measure of liquidity under GAAP, or otherwise, and is not an alternative to cash flow from continuing operating activities, despite the advantages regarding the use and analysis of these measures as mentioned above. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted share, and Adjusted gross margin, as disclosed in this press release, have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP; nor are these measures intended to be measures of liquidity or free cash flow.

To properly and prudently evaluate our business, we encourage readers to review the consolidated GAAP financial statements included in this press release and not rely on any single financial measure to evaluate our business. Reconciliations of Adjusted EBITDA to net income (loss), the most directly comparable GAAP-based measure, Adjusted earnings (loss) per diluted share to net income (loss) per diluted share, the most directly comparable GAAP-based measure, and Adjusted gross margin to gross margin, the most directly comparable GAAP-based measure are provided in tables later in this press release. We strongly urge readers to review these reconciliations, along with the financial statements included in this press release.

Forward-Looking Non-GAAP Financial Measures
This press release and statements made in our conference call today also include the forward-looking non-GAAP financial measures of adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and free cash flow guidance for the fourth quarter and full year 2026. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Investor Contact:
Tom Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860

AUDIOEYE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three months ended September 30, 

Nine months ended September 30, 

(in thousands, except per share data)

2026

2025

2026

2025

Revenue

$

10,963

$

10,227

$

32,232

$

29,817

Cost of revenue

1,871

2,312

6,439

6,545

Gross profit

9,092

7,915

25,793

23,272

Operating expenses:

Selling and marketing

3,304

3,649

10,806

11,169

Research and development

889

1,118

2,848

3,471

General and administrative

3,644

3,506

13,365

10,998

Change in fair value of contingent consideration

—

(40)

—

(1,350)

Total operating expenses

7,837

8,233

27,019

24,288

Operating income (loss)

1,255

(318)

(1,226)

(1,016)

Other expense:

Interest expense, net

(265)

(236)

(763)

(709)

Loss on extinguishment of debt

—

—

—

(300)

Total other expense

(265)

(236)

(763)

(1,009)

Net income (loss)

$

990

$

(554)

$

(1,989)

$

(2,025)

Net income (loss) per common share – basic

$

0.08

$

(0.04)

$

(0.16)

$

(0.16)

Net income (loss) per common share – diluted

$

0.08

$

(0.04)

$

(0.16)

$

(0.16)

Weighted average common shares outstanding – basic

12,583

12,414

12,512

12,417

Weighted average common shares outstanding – diluted     

12,971

12,414

12,512

12,417

 

AUDIOEYE, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

September 30, 

December 31, 

(in thousands, except per share data)

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$

9,327

$

5,288

Accounts receivable, net

5,772

6,557

Prepaid expenses and other current assets

878

777

Total current assets

15,977

12,622

Property and equipment, net

105

146

Right of use assets

297

168

Intangible assets, net

10,826

12,515

Goodwill

6,682

6,682

Other

41

97

Total assets

$

33,928

$

32,230

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued expenses

$

3,442

$

4,851

Operating lease liabilities

57

218

Deferred revenue

8,350

8,619

Contingent consideration

300

225

Term loan, current

850

503

Total current liabilities

12,999

14,416

Long term liabilities:

Term loan, net

15,380

12,479

Operating lease liabilities

254

—

Deferred revenue

81

5

Contingent consideration, long term

—

300

Other

138

226

Total liabilities

28,852

27,426

Stockholders’ equity:

Preferred stock, $0.00001 par value, 10,000 shares authorized

Common stock, $0.00001 par value, 50,000 shares authorized, 12,676 and 12,383 shares     
issued and outstanding as of September 30, 2026 and December 31, 2025, respectively

1

1

Additional paid-in capital

110,937

108,201

Accumulated deficit

(105,862)

(103,398)

Total stockholders’ equity

5,076

4,804

Total liabilities and stockholders’ equity

$

33,928

$

32,230

 

AUDIOEYE, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

(unaudited)

Three months ended September 30, 

Nine months ended September 30, 

(in thousands, except per share data)

2026

2025

2026

2025

Adjusted EBITDA Reconciliation

Net income (loss) (GAAP)

$

990

$

(554)

$

(1,989)

$

(2,025)

Change in fair value of contingent consideration

—

(40)

—

(1,350)

Interest expense, net

265

236

763

709

Stock-based compensation expense

1,191

1,281

3,678

3,693

Acquisition expense (1)

21

—

123

33

Litigation expense (2)

492

607

3,398

1,936

Severance expense (3)

—

—

344

304

Lost deposit on alternative financing

—

—

—

50

Depreciation and amortization

927

918

2,901

2,581

Loss on disposal or impairment of long-lived assets

—

5

5

61

Loss on extinguishment of debt

—

—

—

300

Adjusted EBITDA

$

3,886

$

2,453

$

9,223

$

6,292

GAAP Net income (loss) as a percent of revenue

9

%

(5)

%

(6)

%

(7)

%

Adjusted EBITDA margin (4)

35

%

24

%

29

%

21

%

Adjusted Earnings per Diluted Share Reconciliation

Net income (loss) per common share (GAAP) — diluted     

$

0.08

$

(0.04)

$

(0.16)

$

(0.16)

Change in fair value of contingent consideration

—

—

—

(0.10)

Interest expense, net

0.02

0.02

0.06

0.06

Stock-based compensation expense

0.09

0.10

0.29

0.29

Acquisition expense (1)

—

—

0.01

—

Litigation expense (2)

0.04

0.05

0.26

0.16

Severance expense (3)

—

—

0.03

0.02

Lost deposit on alternative financing

—

—

—

—

Depreciation and amortization

0.07

0.07

0.23

0.20

Loss on disposal or impairment of long-lived assets

—

—

—

—

Loss on extinguishment of debt

—

—

—

0.02

Adjusted earnings per diluted share (5)

$

0.30

$

0.19

$

0.72

$

0.50

Diluted weighted average shares (GAAP)

12,971

12,414

12,512

12,417

Includable incremental shares (Non-GAAP) (5)

—

229

348

174

Adjusted diluted shares (Non-GAAP)

12,971

12,643

12,860

12,591

(1)

Represents professional fees incurred in connection with acquisitions and dissolutions.

(2)

Represents legal expenses related primarily to non-recurring litigation.

(3)

Represents severance expense for an employee from a previously acquired business and for employees impacted by a reduction in force in 2026.

(4)

Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of GAAP revenue.

(5)

Adjusted earnings per adjusted diluted share for our common stock is computed using the treasury stock method.

 

AUDIOEYE, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

(unaudited)

Three months ended September 30, 

Nine months ended September 30, 

(in thousands)

2026

2025

2026

2025

Adjusted Gross Margin Reconciliation

Revenue

$

10,963

$

10,227

$

32,232

$

29,817

Less: Cost of revenue

1,871

2,312

6,439

6,545

Gross profit (GAAP)

$

9,092

$

7,915

$

25,793

$

23,272

Gross margin (GAAP)

83

%

77

%

80

%

78

%

Add expenses included in cost of revenue:     

Depreciation and amortization

$

466

$

494

$

1,458

$

1,432

Stock-based compensation

56

61

202

198

Adjusted gross profit (non-GAAP)

$

9,614

$

8,470

$

27,453

$

24,902

Adjusted gross margin (non-GAAP)

88

%

83

%

85

%

84

%

 

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SOURCE AudioEye, Inc.

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Lingbo to Showcase Intelligent Electric Drive Systems and Powertrain Solutions at EICMA 2026

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MILAN, Oct. 26, 2026 /PRNewswire/ — Wuxi Lingbo Electronic Technology Co., Ltd. (Lingbo), a China-based developer and manufacturer of intelligent electric drive systems, will participate in EICMA 2026, held November 3–8, 2026, at Fiera Milano Rho, Italy. At Hall 18, Booth E53, Lingbo will showcase its motor control technologies and integrated powertrain solutions to European manufacturers, distributors and industry partners.

Lingbo develops motor controllers, electric motors, battery management systems (BMS) and integrated powertrain solutions for electric two-wheelers and light electric vehicles. Combining in-house hardware and software development, the company provides electric drive solutions for manufacturers with different vehicle configurations and performance requirements. Built around proprietary field-oriented control (FOC) algorithms, Lingbo’s motor controllers are designed for smooth torque delivery, responsive acceleration and low operating noise. The solutions support regenerative braking, closed-loop torque control and CAN bus communication, enabling integration across electric motorcycles, off-road electric motorcycles, light electric vehicles and electric three-wheelers.

Beyond individual components, Lingbo offers integrated hardware and software solutions, supporting customized powertrain development and vehicle integration. Its in-house R&D capabilities and experience serving international two-wheeler brands support collaboration with manufacturers seeking electric drive technologies.

Through EICMA 2026, Lingbo aims to strengthen its presence in Europe and connect with OEMs, distributors and technology partners to explore product development, technical collaboration and regional distribution opportunities. “Europe is an important market for Lingbo. EICMA provides an opportunity to introduce our technologies and connect with manufacturers seeking reliable electric drive solutions,” said Julian Xu, Senior Overseas Marketing Manager at Lingbo.

About Lingbo

Wuxi Lingbo Electronic Technology Co., Ltd. focuses on the research, development and manufacturing of core components for new energy transportation vehicles. Its main products include intelligent controllers (PDU/VCU), brushless DC motors (BLDCM), permanent magnet synchronous motors (PMSM), BMS, and instruments, which are widely used across applications including electric two-wheelers, shared mobility, water transportation, and special vehicles. The company integrated intelligent safety functions such as TCS and steep slope descent control.

Industry professionals are invited to visit Hall 18, Booth E53, from November 3–8, 2026, to explore Lingbo’s technologies and discuss potential partnerships.

Website :  https://www.lbelectronic.com/

Business Inquiries: julianxu@lingbomc.com

Media Contact: maozenan@lingbomc.com 

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Robo.ai Inc. Announces Results of Extraordinary General Meeting

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DUBAI, UAE, Oct. 26, 2026 /PRNewswire/ — Robo.ai Inc. (Nasdaq: AIIO) (the “Company”), a UAE-based, U.S.-listed company, today announced that each of the proposed resolutions submitted for shareholder approval as set forth in the notice of extraordinary general meeting of shareholders dated October 16, 2026 has been adopted at its extraordinary general meeting of shareholders held in Dubai, United Arab Emirates today.

After the adoption of the proposed resolutions, the seventh amended and restated memorandum and articles of association are adopted. Following the effectiveness of the share consolidation and increase in authorized share capital on November 6, 2026, (i) the Company’s authorized share capital will be US$19,250,000 divided into 385,000,000 shares, comprising 35,000,000 Class A ordinary shares with a par value of US$0.05 per share, and 350,000,000 Class B ordinary shares with a par value of US$0.05 per share, and (ii) the Company’s issued and outstanding shares will comprise 552,700 Class A ordinary shares with a par value of US$0.05 and 8,894,680 Class B ordinary shares with a par value of US$0.05. All fractional shares resulting from the reverse stock split will be disregarded and not be issued to the shareholders of the Company but all such fractional shares will be aggregated and, if possible, sold and distributed to the underlying shareholders as per latest decision of the board of directors of the Company.

About Robo.ai Inc.

Robo.ai Inc. (Nasdaq: AIIO), headquartered in Dubai, United Arab Emirates, is a Nasdaq-listed technology group building intelligent infrastructure across four platforms: artificial intelligence; robotics and smart mobility; advanced manufacturing; and digital assets and capital. Its industrial group, Alif Holding, is dedicated to building intelligent industries through the development, integration and manufacturing of AI systems, serving government, public sector and mission-critical domains. Through its subsidiary Neurovia AI, the Company develops AI software and visual data infrastructure. Quantum Core Capital (“QC Capital”), its AI-powered deep-tech holding and venture-building platform, incubates, invests in and operates businesses across artificial intelligence, robotics, digital infrastructure and the next-generation digital economy.

Forward-Looking Statements

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to,” “challenges,” and similar statements. Robo.ai may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Robo.ai’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Robo.ai’s strategies, future business development, and financial condition and results of operations; Robo.ai’s limited operating history in its current business; Robo.ai’s ability to generate positive cash flow and profits; Robo.ai’s ability to compete successfully; Robo.ai’s ability to build its brand and withstand negative publicity; and changes in customer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Robo.ai’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Robo.ai does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

For investors:
Robo.ai Inc. Investor Relations
E-mail: ir@roboai.group 

For media:
Robo.ai Inc. Corporate Communications
E-mail: pr@roboai.group 

Website: www.roboai.group 

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SOURCE Robo.ai Inc.

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