Datavault AI Inc. (NASDAQ: DVLT) announced it has executed a binding term sheet for a $120 million cash contribution from Scilex Holding Company (NASDAQ: SCLX) to fund deployment of quantum-ready GPU infrastructure across an estimated 100 U.S. cities.

Under the agreement, Scilex will make the upfront cash contribution in exchange for revenue participation rights. Datavault AI will pay Scilex 30% of gross revenues from the network until Scilex receives $250 million, then 15% until total payments reach $1.2 billion, and 5% thereafter.

The funding will support build-out of Datavault AI's quantum-ready edge network, including equipment, working capital and overhead expenses. The company plans to leverage Available Infrastructure's micro edge data centers featuring quantum-resistant encryption and GPUs for AI processing.

"The contribution from Scilex will provide the capital required to execute our vision for the quantum-ready edge network without diluting our shareholders," said Nathaniel T. Bradley, CEO of Datavault AI.

The companies project deployment of 25 operational locations within 12 months, 50 within 24 months, and 100 locations within 36 months of closing. Initial deployment in New York and Philadelphia is expected to begin in the second quarter of 2026.

Datavault AI states it has secured Nvidia GPUs valued at $1.2 billion for the rollout. The transaction is targeted to close in multiple tranches, with the final tranche before the end of 2026.

The companies must negotiate a definitive agreement containing customary representations, warranties and other provisions for transactions of this type. The information is based on a company press release.