OpenWorld, Inc. (NASDAQ: OPNW) has entered into a non-binding term sheet with Beyond Limits, Inc. ("BeyondAI") for a proposed intellectual property-backed transaction of up to $130 million, according to a press release.

The proposed transaction would be structured through the issuance of digital tokens, with each token representing an investor's rights to payments backed by eligible BeyondAI intellectual property, including patents and software rights. OpenWorld would provide transaction structuring, tokenization, technology integration, reporting infrastructure, and operational services through its OpenWorld Enterprise platform.

The term sheet is non-binding, and the proposed transaction remains subject to the negotiation and execution of definitive documentation, satisfaction of applicable conditions, and completion of the contemplated transaction. OpenWorld stated there can be no assurance the transaction will be completed on the described terms or at all.

The arrangement is intended to function as a financing backed by eligible IP rights rather than a sale of BeyondAI's technology, meaning BeyondAI would retain control of its intellectual property.

"Intellectual property is one of the largest and least financed asset classes held by technology companies," said Matthew Shaw, CEO and Chairman of OpenWorld.

AJ Abdallat, Founder and CEO of BeyondAI, said the transaction is intended to preserve flexibility to serve customers and support growth. BeyondAI's investors include Aramco Ventures, ILA, and BP Ventures. The company has previously announced commercial agreements with Aramco and a collaboration with HUMAIN to deploy AI solutions in Saudi Arabia.