TaoWeave Pivots to Physical AI with Manako Labs Investment

DENVER & LONDON – June 01, 2026 – TaoWeave, Inc. (Nasdaq: TWAV) is making a significant strategic pivot, moving from a focus on digital asset treasury to the rapidly emerging Physical AI market. The company announced a $1 million investment in the London-based startup Manako Labs Ltd., securing preferred North American commercialization rights for its innovative technology that transforms existing camera networks into intelligent operational systems.

The deal marks TaoWeave's first direct operating investment in artificial intelligence, signaling a fundamental shift in its business model. The company, previously known for its activities within the Bittensor blockchain ecosystem and managing digital assets, is now positioning itself to build a platform for deploying, commercializing, and generating recurring revenue from enterprise AI applications.

From Digital Treasury to AI Commercialization

Until now, TaoWeave's strategy has been closely tied to the volatile world of digital assets, specifically its involvement in the Bittensor ecosystem. This new direction represents a deliberate move to diversify and build a more stable, operational revenue stream. The investment in Manako Labs is the first concrete step in this new strategy to own, operate, and scale emerging AI businesses.

“Our experience in the Bittensor ecosystem has given us a unique perspective on where artificial intelligence is creating real world value,” said Pete Holst, Chief Executive Officer of TaoWeave, in the official announcement. “Physical AI is one of the most compelling opportunities emerging in artificial intelligence. As we spent time with the Manako team, it became clear that they had built something special.”

This pivot allows TaoWeave to leverage its understanding of the AI landscape, gained through its Bittensor activities, and apply it to a tangible, high-growth sector. By moving into AI commercialization, the company aims to capture value not just from asset appreciation but from the direct application of AI technologies in enterprise settings, targeting a more predictable recurring revenue model through licensing agreements.

Tapping the Trillion-Dollar Physical AI Market

The move places TaoWeave at the forefront of what many analysts believe is the next major wave in AI. The Physical AI market—which encompasses technologies that allow AI to sense, reason, and act in the physical world—is projected to experience explosive growth. Industry research estimates the market was valued at approximately $82 billion in 2025 and could approach an astonishing $1 trillion by 2033, expanding at a compound annual growth rate (CAGR) of over 36%.

This burgeoning field is attracting significant attention as AI moves beyond digital workflows and into factories, warehouses, transportation networks, and retail floors. Tech giants like NVIDIA are already generating billions in revenue from physical AI applications, developing foundational models for robotics and autonomous systems. The trend signifies a broader shift in investment and innovation from purely generative, software-based AI toward embodied systems that interact with and optimize real-world operations.

Manako Labs: Turning Existing Cameras into Actionable Intelligence

At the heart of this partnership is Manako Labs' unique technology. The company has developed a "Business Operations World Model" that transforms the vast, underutilized data from existing camera infrastructures into actionable intelligence. Most organizations already have extensive camera networks for security, but the data they generate is rarely used for operational improvement. Manako’s platform changes that.

By deploying on existing hardware, Manako offers a cost-effective and highly scalable solution. It enables organizations to monitor activity, detect emerging issues, and automate workflows without the prohibitive cost of installing new specialized equipment. This approach democratizes access to advanced AI, allowing businesses of all sizes to enhance efficiency and decision-making.

The technology has broad applications across multiple sectors:
* In retail, it can be used for inventory management, analyzing customer flow to optimize store layouts, and preventing loss.
* In logistics, it can monitor warehouse operations, track assets, and orchestrate workflows across complex supply chains.
* In manufacturing, it can perform automated quality control, enable predictive maintenance on machinery, and streamline production lines.

The potential of this approach has already been recognized. Manako Labs recently won first place at the prestigious Start In Block competition during Paris Blockchain Week, selected from a pool of over 1,000 global applicants. Furthermore, its collaboration with PwC France to integrate its platform into their AI and digital advisory practice underscores the enterprise-level demand for such solutions.

The Bittensor Connection: A Decentralized AI Engine

While TaoWeave is pivoting its business model, it is not abandoning its roots in the Bittensor ecosystem. In fact, the partnership with Manako deepens its involvement in a novel way. Manako operates Score (Subnet 44), one of the leading subnets on the Bittensor network.

Bittensor functions as a decentralized machine learning network where developers, or "miners," compete to produce the most accurate AI models for specific tasks defined by various "subnets." In the case of Score, miners compete to build the best computer vision models. This continuous, incentive-driven competition ensures that Manako’s AI agents are constantly improving without manual intervention.

For TaoWeave, this connection provides a pathway to develop its own proprietary AI infrastructure within the Bittensor ecosystem. By participating in this decentralized network, the company can tap into a global pool of AI talent and cutting-edge model development.

“TaoWeave understood very early that the future of AI extends beyond software and into real-world businesses,” noted Max Sebti, Chief Executive Officer of Manako Labs. “That’s why Physical AI is becoming such an important part of enterprise AI. TaoWeave is an ideal commercialization partner to accelerate our expansion in North America, the world’s largest market for AI adoption.”

This partnership positions TaoWeave to participate across the entire Physical AI value chain—from creation and development within the Bittensor network to the commercialization and operation of these technologies in enterprise markets, marking a bold new chapter for the company as it bridges the gap between digital innovation and physical reality.