NEW BRUNSWICK, NJ - DatChat, Inc. (NASDAQ: DATS), a company specializing in secure messaging and social media, has acquired an AI-driven tool for media library organization, aiming to enhance its digital legacy management offerings. The asset purchase agreement, finalized on August 27, 2024, grants DatChat the source code and complete rights to the AI technology, which is compatible with AI models like Gemini, OpenAI, and Claude.
This acquisition is intended to bolster DatChat's Myseum platform, expected to launch in Fall 2024. The platform will provide users with a secure network for storing and sharing digital content within their family. The newly acquired AI tool will allow users to intelligently tag and rename images and media files, facilitating the organization and curation of personal media.
Darin Myman, CEO of DatChat, expressed that the integration of this AI technology represents a significant advancement in helping users manage their digital legacies and making ancestorial history more tangible. The company believes that the secure and intuitive sharing solutions this technology offers will meet the growing need for innovative ways to handle the increasing volume of personal media.
The transaction involved 8,000,000 restricted shares of Dragon Interact, Inc., a majority-owned subsidiary of DatChat. This strategic move underscores DatChat's commitment to enhancing its core services and technological capabilities.
DatChat's existing services include the DatChat Messenger & Private Social Network (LON:NETW), which provides users with control over their message visibility, screenshot prevention, and encryption features for photos shared on the platform. The company emphasizes user privacy and security, both on personal devices and after information is shared with others.
The information in this article is based on a press release statement from DatChat, Inc.
InvestingPro Insights
In light of DatChat, Inc.'s recent acquisition to enhance its Myseum platform, it's worth considering the company's financial health and market performance as it embarks on this venture. According to InvestingPro data, DatChat holds a market capitalization of just $3.76 million USD. This relatively small size indicates that DatChat is a niche player in the secure messaging and social media industry, which aligns with one of the InvestingPro Tips highlighting the company's specific market position.
The financial data also shows a significant revenue decline, with a -91.93% change in the last twelve months as of Q2 2024. This sharp decrease is a critical factor for investors to consider, especially as the company is quickly burning through cash, as suggested by another InvestingPro Tip. This cash burn could impact the company's ability to invest in and grow its new asset, the AI-driven media organization tool.
Moreover, the company's stock has experienced a notable price drop, with a -73.63% one-year total return as of the latest data. This performance could reflect investor sentiment and market reaction to the company's financial health and prospects. It's also important to note that DatChat does not pay dividends, which might be a consideration for income-focused investors.
For those interested in a deeper dive, InvestingPro offers additional insights, with 14 more tips available on the platform, which could further inform stakeholders about DatChat's potential risks and opportunities. These tips, combined with the real-time metrics provided, paint a comprehensive picture of DatChat's current financial standing as it seeks to innovate with its latest acquisition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.