xTAO Launches Validator on Bittensor Network

GRAND CAYMAN, Cayman Islands, Aug. 21, 2025 /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 launch of its validator on the Bittensor network.

The xTAO validator serves a critical function within the Bittensor network by validating the quality and authenticity of machine learning models and AI computations submitted by miners. Unlike traditional blockchain validators that primarily process transactions, Bittensor validators evaluate the performance of AI models across various subnets, ensuring that only high-quality, genuine computational work is rewarded with TAO.

The validator operates by:

• Quality Assessment: Evaluating machine learning models and AI outputs submitted by miners across multiple specialized subnets
• Network Security: Contributing to the integrity of the decentralized AI network by identifying and preventing malicious or low-quality submissions
• Consensus Participation: Participating in the network's consensus mechanism to determine reward distribution based on the value and quality of AI work performed
• Subnet Specialization: Operating across various Bittensor subnets, each focused on specific AI applications such as text generation, image processing, or predictive analytics

The xTAO validator generates revenue through TAO emissions distributed by the network. Validators receive TAO based on their performance in accurately assessing the quality of AI work submitted by miners. This creates a sustainable economic model where:

• Revenue scales with the validator's accuracy and participation across high-value subnets
• Token rewards are distributed proportionally to the validator's stake weight and performance metrics
• Long-term value accrual occurs as the Bittensor network grows and TAO token utility increases
• Operational efficiency improvements directly impact profitability through optimized hardware utilization

By launching a validator on Bittensor, xTAO contributes to the creation of a decentralized marketplace for artificial intelligence, where computational resources and AI capabilities can be distributed globally without centralized control. This positions the company within the rapidly expanding intersection of blockchain technology and artificial intelligence.

The Bittensor network represents a paradigm shift in AI development, enabling a peer-to-peer economy where AI models compete on merit and performance rather than centralized gatekeeping. xTAO's validator operations support this vision by ensuring network integrity and facilitating fair reward distribution to high-performing AI contributors.

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.

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, Bittensor staking yield and revenue, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.

SOURCE xTAO Inc.

For more information, please contact: Karia Samaroo, CEO, xTAO Inc., [email protected], [phone]; Media Contact: Hugh Naylor, [email protected]