xTAO Completes Validator Upgrade to Support Bittensor Protocol Update

GRAND CAYMAN, Cayman Islands, Aug. 17, 2026 /CNW/ -- xTAO Inc. (TSXV: XTAO.U) (OTC: XTAIF) (the "Company" or "xTAO"), a publicly traded technology company focused on building infrastructure for Bittensor and its decentralized AI ecosystem, today announced the successful completion of a validator upgrade undertaken in connection with Root Reborn, a protocol upgrade to the Bittensor network released earlier this month. The upgrade ensures the continued performance and reliability of xTAO's validator operations under the network's updated architecture.

Root Reborn refines the mechanism by which validators support the subnets that comprise the Bittensor network, strengthening the alignment between validator participation and subnet performance. xTAO implemented the corresponding changes to its validator infrastructure without interruption to its operations, and its validator remains among the leading validators on the network.

In the Bittensor ecosystem, validators serve as the essential stewards of network integrity, acting as the primary mechanism for the fair distribution of TAO emissions. Bittensor validators perform a complex evaluative function, continuously scoring the quality of intelligence produced by miners across the network's subnets through the Yuma Consensus, ensuring that incentives are directed toward the most innovative and accurate contributors.

Bittensor continues to advance a peer-to-peer, permissionless marketplace for artificial intelligence, in which specialized models compete and collaborate under a meritocratic incentive structure. Ongoing protocol development of the kind reflected in Root Reborn reinforces the network's foundations and supports its continued maturation as infrastructure for decentralized AI. xTAO remains committed to maintaining validator operations that support the network through each stage of its development.

About xTAO

xTAO is a technology company building infrastructure for the Bittensor ecosystem. xTAO is committed to advancing Bittensor and decentralized AI through building infrastructure and making strategic investments. xTAO is headquartered in the Cayman Islands and is publicly listed on the TSX Venture Exchange under the ticker "XTAO.U." Learn more at www.xtao.co.

On Behalf of the Board of Directors of xTAO Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the operational performance and uptime of the Company's validator infrastructure; the ability of the Company's validator to operate effectively under the Root Reborn upgrade and subsequent protocol changes; the pace and direction of ongoing development of the Bittensor protocol; technical risks associated with the Bittensor protocol and Yuma Consensus; the evolving cryptocurrency regulatory requirements; xTAO value risk; reliance on key personnel; lack of operating history; competitive conditions; cybersecurity risks; market price of the common shares of the Company; internal controls; and the potential for technological vulnerabilities within the decentralized AI ecosystem.

Although management of the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date of this news release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements or information, whether as a result of new information, change in management's estimates or opinions, future circumstances or events or otherwise, except as expressly required by applicable securities law.

SOURCE xTAO Inc.

For more information, please contact: Karia Samaroo, CEO, xTAO Inc., [email protected], [phone]