Spotlight 🔍 VERSES

VERSES is pioneering tech that
thinks and reasons like a human mind

“We believe we are the best-positioned organization to become the market leader in the race to Artificial General Intelligence (AGI), which is often referred to as the 'holy grail' of AI.”
- Gabriel René, Founder & CEO, VERSES

Growing up in Silicon Valley, Gabriel René was immersed in a world brimming with technological innovation, but he wasn’t just a bystander. 

From an early age, René’s vision extended far beyond the typical tech landscape—he sought to reshape our relationship with technology itself. 

So, it’s not surprising he now helms VERSES, to pursue his conviction that computing must move beyond conventional methods and embrace a more nature-inspired and interconnected approach.

VERSES AI Inc. (CBOE: VERS) (OTCQX: VRSSF) is a company that is creating advanced software that mimics how nature works. 

Their main product, Genius™, is a toolkit for developers to build intelligent software that can reason, plan, and learn like a human brain. This technology is based on basic principles from science and biology. It’s designed to make software smarter and more adaptive, allowing it to help people and machines work better together, creating a more connected and efficient world.

Imagine Genius™ as a gardener for software. 

Just as a gardener nurtures plants by providing the right environment to grow and adapt to changes, Genius™ helps software develop its own intelligence, learning and improving over time.

It doesn’t just follow set rule-based instructions—it "grows" by learning from its surroundings, making better decisions and adapting to new challenges, much like how nature evolves through trial and error.

Genius™ utilizes Active Inference, a framework inspired by biological intelligence, to transform disparate data into coherent knowledge models on which intelligent agents can reason, plan and learn any context.

Through this framework, VERSES also aims to pioneer the path toward so-called Artificial General Intelligence (AGI), which goes beyond current mainstream narrow AI models like those being created by OpenAI, Google, Meta, Anthropic, Cohere, etc., by creating generally intelligent systems capable of specializing in a wide range of tasks and learning from experience in a way similar to humans.

While ‘AGI’ has become a popular term, it’s worth commenting that it is a misnomer in that it’s often conceived as a single monolithic system capable of performing any task as competently as a human.  VERSES’ approach envisions a network of many specialized intelligent agents communicating and cooperating – much like how ecosystems function.  The foundation models, generative AI models, and LLMs from the last 2 years are based on an approach initiated approximately 15 years ago and require massive amounts of data, computing and energy.  Conversely, our brains are supercomputers that operate on 20 watts, and Active Inference is modelled after the frugal, adaptive approach found in biological intelligence.

“It is designed to learn and adapt in real-time through interaction with its environment,” said René, Founder & CEO, VERSES

With a groundbreaking scientific team, VERSES has already garnered global attention, securing recognition in prestigious industry reports like Gartner’s Hype Cycle, where the company’s approach to AI was highlighted as a transformational innovation on the rise.

Gartner is one of the world's top technology and research firms. Its Hype Cycle and Magic Quadrant reports, often considered the “gold standard” of technology, guide tech investment for Fortune 500 companies.

“We very much agree that, as the report states, Generative AI has peaked and our technology, First Principles AI, is ‘‘On the rise’, ‘Transformational’, and is in the “Innovation Trigger" phase,” said René.

With generally intelligent agents as part of the broader goal, VERSES is setting the stage for intelligent systems that could eventually handle complex, multi-domain challenges that current AI systems cannot address.

“We believe we are the best-positioned organization to become the market leader in the race to Artificial General Intelligence (AGI), which is often referred to as the 'holy grail' of AI.”

Demand shows great potential for VERSES

With AI-related companies and technologies emerging as premier investment opportunities, McKinsey reports that the AI market could swell to between US$17 trillion and US$25 trillion by 2030. 

In addition, Gartner forecasts global spending on AI software will surge to US$297 billion by 2027 as software vendors continue to integrate AI tools into products. 

The increasing advancements in artificial intelligence, combined with the growing integration of AI across various industries such as healthcare, finance, and manufacturing, are also driving significant demand for AGI solutions.

According to SNS Insider Research, The Artificial General Intelligence (AGI) Market size was valued at US$3.01 billion in 2023 and is projected to reach US$52 billion by 2032, growing at a CAGR of 37.5% during the forecast period of 2024-2032.

The growing focus on reducing human intervention in high-risk environments, such as autonomous vehicles and industrial robotics, is expected to further fuel the demand for AGI solutions, states SNS.

For VERSES, that demand is already showing great promise.

Here are some highlights of VERSES’ focus on advancing its Genius™ platform, expanding partnerships, conducting groundbreaking research, and positioning itself as a leader in the evolving AI and AGI landscape; 

• Public Beta Launch: VERSES launched the public beta of Genius™ in June 2024, inviting developers to explore the platform. The Genius™ platform is built on open standards and designed to foster collaboration between humans, machines, and AI across digital and physical domains

• Partnerships with Major Industry Players: VERSES has partnered with organizations such as NASA's Jet Propulsion Laboratory (JPL), Volvo, and SimWell as part of its Genius™ beta program. These partnerships focus on leveraging the platform for diverse applications, including smart city initiatives and digital twin simulations for operational efficiency. This week, the company announced initial results of the Genius™ Beta Partner collaboration and the publishing of a paper co-authored by research teams at both Volvo Cars and VERSES. The paper uses VERSES’ algorithms to predict the appearance of pedestrians, cyclists, and cars that are obscured behind stationary vehicles and objects - an advancement beyond current capabilities of autonomous vehicle AI. Last month, VERSES AI announced the first in a series of joint smart city projects with Analog, an edge computing company focused on seamlessly connecting people, places and things using smart sensors and mixed reality devices, to simulate taxi fleet management in Abu Dhabi. This pilot project is the first in a series of commercial projects that VERSES and Analog expect to develop together in Abu Dhabi with expected generated revenue for VERSES of approximately US$3,000,000.

• Groundbreaking Research: VERSES has published more than 30 scientific papers in collaboration with more than 20 of the leading universities and research centers around the world on the complex science of advanced intelligent software. The company has also made significant advances in AGI through its Active Inference framework, developed by its Chief Science Officer Karl Friston. This method aims to replicate human intelligence in machines by focusing on adaptability and generalizability, a departure from current AI models.

• Customer Signups: Genius™ has attracted over 1,500 customer signups, showing strong interest from developers and enterprises looking to deploy smarter AI systems. This early success is driving the platform’s testing and iterative development

• Real-World Applications: SimWell, a technology company dedicated to decision support and decision automation, has begun exploring the use of Genius™ for predictive simulations in supply chains and logistics, which could provide advanced decision-making support by integrating data from operations and physical spaces.

VERSES: a Top Pick for Investors

VERSES emerged as a Top Pick at the 12th annual Muskoka Capital Event, organized by CEM. This event brought together over 50 companies from diverse industries, allowing these companies to connect with visionary entrepreneurs driving innovative change. VERSES was distinguished as a standout during the Investor Breakout Exchange, CEM's marquee event, which selects companies with exceptional growth potential.

Stock Information CBOE: VERS

1. As of market close on Monday November 11, 2024
2. As of market close on Monday September 30, 2024 after being selected as a Top Pick at the CEM Muskoka Capital Event*

Following the company being selected as a Top Pick at the CEM Muskoka Capital Event, I caught up with Gabriel René, Founder & CEO, VERSES to delve deeper into the company’s vision and trajectory.

What is attracting investors and partners to VERSES?

"First, our vision transcends traditional AI models by focusing on building a more organic, interconnected form of intelligence that mimics how nature works. The foundation of our technology, particularly with our Genius™ platform, is based on the science of Active Inference, a biologically inspired approach that allows our systems not just to process data but to learn, adapt, and evolve in real-time. This adaptability and intelligence have the potential to transform industries from logistics to healthcare, which excites both investors and corporate partners.

What sets us apart is our pursuit of Artificial General Intelligence (AGI). Unlike narrow AI, AGI can generalize across multiple tasks, learn from experience, and interact with the world in ways that are closer to human reasoning. Investors see this as the future of AI, and our breakthroughs—particularly in areas like the automated generation of intelligent agents from small data sets—show that we are on a unique and scalable path toward that future.

Furthermore, VERSES operates at the intersection of AI, the Internet of Things, Industry 4.0, and Web 3, which are all specific narratives that point to a convergence of technologies. This convergence positions us to solve some of the most complex challenges businesses face today, such as real-time decision-making in dynamic environments. Partners, especially those in industries like supply chain and autonomous systems, are eager to leverage our technology because it provides actionable intelligence and operational efficiency, aligning with their strategic goals.

Ultimately, it's our combination of cutting-edge research, practical applications, and the promise of a smarter, more interconnected future that is driving investor confidence and attracting world-class partnerships."

What is the scalability of VERSES’ technology and innovations?

“The scalability of our Genius™ platform is one of its key strengths, designed from the ground up to operate across multiple domains—from local operations to global networks. What makes Genius™ scalable is its foundation in Active Inference, which allows it to generalize across different types of data, adapt in real-time, and seamlessly integrate into both digital and physical environments. Our approach is not just about scaling computation; it's about scaling intelligence.

Take our work with NASA’s Jet Propulsion Laboratory (JPL), for example. They’re using our platform to scale intelligent systems for real-time spatial modelling. This is crucial in fields like smart city management, where large-scale, real-time data integration is needed to manage everything from traffic flows to emergency responses.

Another great example is our partnership with SimWell, where Genius™ is being used for digital twin simulations in the logistics and supply chain industry. By mapping operational data and physical spaces, SimWell is leveraging Genius™ to optimize operations across large, distributed networks—making it a perfect example of scalable, real-world AI deployment.

The beauty of this platform is that it’s designed to evolve and scale in complexity and capability. As new data is introduced and environments change, Genius™ adapts, allowing for smarter decision-making over time—whether you're managing a single factory or a global supply chain.

At its core, VERSES is about building technologies that not only scale up but scale intelligently. We’re on a path to creating systems that can handle anything from localized processes to planetary-scale distributed intelligence networks, all while maintaining efficiency and real-time adaptability.”

What’s next for VERSES?

"In the coming years, our focus will be on scaling the potential of our Genius™ platform, refining it into a system that truly embodies the principles of Artificial General Intelligence (AGI). Our goal is to create adaptive, intelligent agents capable of learning, reasoning, and evolving in dynamic environments—enabling them to tackle complex, multi-domain challenges.

Moreover, we're planning to expand our partnerships with Fortune 500 companies and government bodies. For instance, through initiatives like our collaborations with Blue Yonder and our role in the European Commission’s Flying Forward 2020 project, we're actively shaping the future and real-time AI governance.

Looking further ahead, our roadmap includes making significant strides toward AGI. We believe AGI will become the cornerstone of future AI systems, and we’re laying the groundwork today by advancing research on Active Inference and cognitive models inspired by biology. With our team of world-class scientists and researchers, led by Dr. Karl Friston, we’re closer to unlocking the full potential of AI that can reason, plan, and learn autonomously in ways that conventional models simply cannot.”

Our View

At the Investor Breakout Exchange, we see VERSES innovations potentially leading to breakthroughs in AI capabilities. The company is positioned uniquely in the AI landscape because it is building technology that can reason like a human mind, not just follow predefined instructions.

• VERSES’ pioneering work in intelligent systems and their use of Active Inference is a major differentiator from traditional AI systems, which typically operate within pre-set boundaries. Investors are particularly excited about the potential applications in areas such as autonomous vehicles and smart cities, with VERSES already piloting these technologies in regions like Abu Dhabi.
• VERSES inclusion in the 2024 Gartner Hype Cycle for Artificial Intelligence, is a clear indicator that their technologies are viewed as highly innovative and disruptive. Gartner’s recognition often signals that a company’s innovations are on the cusp of mainstream adoption, giving VERSES a competitive edge in attracting investment
• VERSES is actively expanding its product offerings. Recently, the company announced the Genius Public Beta Preview, in collaboration with notable partners such as Nalantis, Cortical Labs, SimWell, NASA’s Jet Propulsion Laboratory (JPL), Volvo Cars, and Blue Yonder, further validating its technological and commercial potential.

The Investor Breakout Advantage

As you already know, our Investor Breakout newsletter is based on the top picks and performers at CEM capital events, which are held seven times a year. These invite-only summits serve as the meeting ground for North America’s most influential investors and industry-leading issuers that attend a day-long series of 1-1 meetings.

At the end of each event, after over 1,000 meetings have taken place, investors gather for the Breakout Exchange forum to identify their top picks.

Next Stop: Florida 

Mark your calendars! 

CEM is proud to announce the 8th annual Florida Capital Event, scheduled for November 22 to November 24, 2024, at the JW Marriott Miami Turnberry Resort & Spa in Aventura, Florida. This elite conference, marking one of the first major investor gatherings post-U.S. elections, is designed to foster strategic connections between companies and top capital finance leaders through carefully arranged one-on-one meetings and dynamic networking activities.

Warm Regards and Happy Investing,
Fabian Dawson