VERSES Issues Inaugural Monthly Newsletter May 2025

VERSES® is now trading on OTCQB:VRSSF and CBOE:VERS

VANCOUVER, British Columbia, May 07, 2025 (GLOBE NEWSWIRE) — VERSES AI Inc. (CBOE: VERS) (OTCQB: VRSSF) (“VERSES” or the “Company”) is pleased to announce the launch of its inaugural monthly newsletter.

FROM THE CEO

Welcome to the inaugural issue of VERSES Monthly Newsletter. As the company grows, this newsletter is intended to offer a window into VERSES, highlighting our increasing momentum, product innovation, commercial traction, research breakthroughs, financial highlights, and the larger vision guiding us forward.

I believe this is an exhilarating moment for VERSES. The pace inside our labs and across our customer engagements continues to accelerate, and this newsletter reflects our commitment to keep you closely and consistently informed. Look for highlights on Genius releases, new partnerships, media coverage, events, and milestones that showcase the value we expect to create together.

Thank you for your interest and support. We’re excited to welcome you aboard and are looking forward to sharing our journey with you.

Sincerely,

Gabriel René

Founder and CEO of VERSES

PRODUCT UPDATE

Genius officially launched on April 30th, enabling Agentic Intelligence for Enterprise. The initial target audience for Genius is machine learning and data science professionals trying to solve enterprise problems that require prediction with uncertainty or hidden factors. Genius is designed to provide the tools necessary to build domain-specific models that are intended to enhance decision-making (inference as a service) for third-party agents through our SDKs/APIs and model editor.

Genius’ launch comes with significant upgrades and enhancements based on extensive testing and feedback from customers during the beta phase. Users and partners across several industry sectors including telecom, logistics, oil and gas exploration and more provided valuable insight into building domain-specific models and generating reliable predictions. Updates were made to the model editor, application programming interfaces (APIs) and a customer portal to manage deployments and licenses, monitor system performance, and request support and new features. A full list of models, capabilities and pricing can be found on our website https://www.verses.ai/genius. Genius is now a paid service with consumption-based and performance-based pricing as well as enterprise licensing.

USE CASE SPOTLIGHT

We look forward to sharing many of our commercial examples, demos, customer announcements and testimonials. In this month’s Use Case Spotlight we show how Genius can have a real impact in Healthcare, specifically for insulin delivery optimization. Diabetes management today relies on automated insulin pumps or manual injections, both of which lack the ability to adapt to individual patient behaviors—like irregular meals, exercise intensity, or stress levels. Current solutions use static predictive models, leading to frequent hypo/hyperglycemic events.

With Genius healthcare providers and device manufacturers could embed active inference agents within insulin pumps that can:

• Learn patient-specific glucose response patterns over time.
• Adapt insulin delivery in real-time based on data from a continuous glucose monitor (CGM).
• Improve patient safety with predictive crash avoidance, reducing emergency incidents.
• Lower healthcare costs by better managing chronic care.

According to the International Diabetes Federation Diabetes Atlas (2025) there are 589 million adults (20-79 years) living with diabetes globally and this number is predicted to rise to 853 million by 2050. Diabetes was responsible for 3.4 million deaths in 2024 – 1 every 9 seconds and estimated to have caused at least USD 1 trillion dollars in health expenditure – a 338% increase over the last 17 years.

The prediction and decision making capabilities that Genius is designed to provide can be applied to many domains and use cases that have high degrees of volatility, uncertainty, complexity or ambiguity such as:

• Consumer Demand Predictions and Recommendations.  Consumer trends change, frequently and almost unpredictably. Reasoning and helping make inventory decisions in real time to meet consumer demand
• Clinical Trial Predictions.  Outcomes are highly unpredictable despite best practices — human biology has too many unknowns. Investments hinge on uncertain regulatory and trial outcomes.
• Global Supply Chain Optimization.  Thousands of interdependent suppliers create compounding effects even from small disruptions. Tracking cause and effect in a global network is extremely difficult.

RESEARCH DEVELOPMENTS

Research and development is advancing steadily including progress on benchmarks. At the end of 2024, we shared information regarding our progress on several games and since then have formulated a more comprehensive framework designed to address current challenges and showcase intricate scenarios that require advanced strategies, with results expected in the near future. In March 2025, at the AI UK 2025 event held at the Turing Institute we presented EcoNet, an active inference-based multi-agent simulation, which focuses on urban energy optimization.

So far this year, many of our employees, known as VERSIANS, have published and preprinted several scholarly papers.

• Benchmarking Predictive Coding Networks – Made Simple (Accepted at ICLR 2025; Author: Tommaso Salvatori; this paper was presented as a Spotlight at ICLR, which is reserved for the top 5% of the papers)
• Self-Supervised Learning Encodes Uncertainty (Accepted at ICLR 2025 Workshop; Authors: Miguel De Llanza Varona, Ryan Singh, Christopher Buckley)
• Uncertainty quantification in fine-tuned LLMs using LoRA ensembles (Accepted at ICLR 2025; Author: Hampus Linander)
• Training Deep Predictive Coding Networks (Accepted at Associative Memory Workshop; Author: Tommaso Salvatori)
• FOCUS: object-centric world models for robotic manipulation (Published in Frontiers in Neurorobotics; Author: Tim Verbelen)
• How do inner screens enable imaginative experience? Applying the free-energy principle directly to the study of conscious experience (Published in Neuroscience of Consciousness; Author: Mahault Albarracin, Karl Friston, Alex Kiefer)
• Feeling our place in the world: an active inference account of self-esteem (Published in Neuroscience of Consciousness; Author: Mahault Albarracin)
• The Physics and Metaphysics of Social Powers: Bridging Cognitive Processing and Social Dynamics, a New Perspective on Power through Active Inference (Preprint; Author: Mahault Albarracin)
• Agentic rulebooks using active inference: An artificial intelligence application for environmental sustainability (Published in Frontiers in Sustainable Cities; Authors: Axel Constant, Mahault Albarracin, Marco Perin, Hari Thiruvengada, Karl Friston)

Finally, we expect that later this month, we will be able to share a much anticipated update on the “Atari Benchmark,” results, their third-party validation, its associated research paper and submission to NeurIPS for peer review and publishing, and its implications for Genius and the future of the AI Industry.

KARL’S CORNER

Professor Karl Friston, world renowned neuroscientist recognized for the Free Energy Principle and Active Inference, has served as our Chief Scientist since December 2022, leading our AI research efforts.

In December 2024, VERSES renewed its exclusive agreement with Professor Friston, extending his role to continue to advance the research behind our flagship product, Genius™, a suite of tools designed to model complex dynamic systems that continuously reason, plan, and learn.

Prof Friston was invited to give a keynote lecture at the first workshop on NeuroAI at NeurIPS 24 NeurIPS Keynote 1, with a subsequent panel discussion NeurIPS Panel Discussion — with Yoshua Bengio — on the fusion of neuroscience and artificial intelligence for intelligent solutions for our future. A more intuitive introduction to the underlying principles can be found in Professor Friston’s lecture entitled, “How the Brain Makes Predictions.”

Last month, Professor Friston and VERSES Research Lab co-authored a paper titled “Agentic rulebooks using active inference: An artificial intelligence application for environmental sustainability”. A neuroscience-inspired AI approach could make smart thermostats more adaptable, helping balance energy costs, user comfort, and grid demands, even in extreme conditions. This work was showcased at The Alan Turing Institute’s showcase, AI UK 2024. Other notable authors are University of Sussex, Université du Québec à Montréal, Pennsylvania State University (PSU) and Wellcome Centre for Human Neuroimaging, University College London.

On the launch of Genius, Professor Friston commented, “I’m incredibly delighted and impressed with the state of Genius. It’s like watching a pipe-dream come to life. I was particularly taken with the care and attention the team has paid to making Active Inference more accessible and the potential applications now suddenly came into sharp and exciting focus.”

CORPORATE NEWS

We’re thrilled to announce the promotions of Lori Pike to Vice President of Engineering and Tim Bellay to Director of Product—two key leaders whose dedication has been instrumental in keeping the launch of Genius on track. Lori’s technical leadership and ability to scale high-performing teams have been foundational to our engineering success, while Tim’s strategic product vision and user-first mindset have shaped a roadmap that meets market needs with precision. Their continued leadership will be critical as we scale.

These promotions follow two recently announced important leadership updates: James Hendrickson was appointed President and Chief Operating Officer, expanding his role as he continues to drive operational excellence across the organization. Since joining VERSES, James has played a critical role in scaling our operations and aligning teams to execute on our strategic vision—his expanded title reflects his growing impact on the business. Additionally, we welcomed James Christodoulou as Chief Financial Officer. With a strong background in public company finance and strategic capital management, James (known at Verses as JC) will lead our financial operations as we prepare for the next phase of growth.

AI SECTOR UPDATE

NVIDIA held its GTC AI Conference in San Jose, California. This year’s event was completely sold out, with an estimated 20,000 investors, engineers, and business leaders in attendance.

NVIDIA CEO Jensen Huang described a future where AI agents will transform entire industries, making businesses more efficient, aerospace and defense more advanced, and markets more intelligent.

Huang spoke extensively about “agentic AI,” or AI that doesn’t just retrieve data but perceives, reasons, and acts on your behalf. Here is where NVIDIA thinks AI agents are on the AI adoption curve. 

Morgan Stanley highlighted its 5 AI Trends at its Technology, Media & Telecom Conference in San Francisco on March 5, 2025.

1. AI reasoning and custom silicon fuel demand for chips
2. Hyperscalers see cloud migrations and AI workloads as revenue opportunities
3. LLMs see potential in AI reasoning for enterprises
4. Data companies zero in on evaluating AI
5. Software companies set sights on agentic AI

NEWS AND KEY MOMENTS

Apr 30, 2025 VERSES® Announces Commercial Launch of Genius™

Apr 28, 2025 VERSES® Announces Closing of US$7.9 Million (C$11.0 Million) Public Offering

Apr 24, 2025 VERSES® Announces Pricing of Public Offering of Units

Apr 24, 2025 VERSES® Announces Proposed Public Offering of Securities

Apr 17, 2025 VERSES® Promotes James Hendrickson to President and Chief Operating Officer

Mar 28, 2025 VERSES® Trading Under New Ticker VRSSD on OTCQB Market

Mar 26, 2025 VERSES® Announces Consolidation of Class A Subordinate Voting Shares in Preparation for a Planned Uplisting to NASDAQ

Mar 21, 2025 VERSES® Announces Commercial Partnership with AI Driller for Smarter Oil and Gas Operations

Mar 18, 2025 VERSES Demonstrates Smart Building Energy Optimization

Mar 7, 2025 VERSES® to Present at the 37th Annual Roth Conference March 16-18th

Mar 4, 2025 VERSES® Announces Conversion of Strategic Investment by G42

Feb 27, 2025 VERSES® Appoints Public Market Veteran James Christodoulou as Chief Financial Officer

Feb 25, 2025 VERSES® Announces Launch of Commercial Genius™ Agent Toolkit

Feb 7, 2025 VERSES® Announces Fireside Chat with Chief Scientist Professor Karl Friston

Feb 4, 2025 VERSES® Genius™ Outperforms DeepSeek R1 Model in Code-Breaking “Mastermind” Challenge

Jan 30, 2025 VERSES® Partners with Leading Global Investment Firm for Genius™ Beta

Jan 27, 2025 VERSES® Partners with Top Australian Telecom for Genius™ Beta

Jan 22, 2025 VERSES Genius™ Agent Outperforms Leading AI Algorithms at Major Industry Benchmark

Jan 13, 2025 VERSES to Release Atari Benchmark Results at World Economic Forum in Davos

Jan 9, 2025 VERSES Announces Closing of First Tranche of LIFE Private Placement Offering

Jan 9, 2025 VERSES Announces Closing of US$13.9 Million (C$20.0 Million) Prospectus Supplement Offering

Jan 7, 2025 VERSES AI Announces Pricing of Unit Offering

About VERSES

VERSES is a cognitive computing company building next-generation intelligent software systems modeled after the wisdom and genius of Nature. Designed around first principles found in science, physics and biology, our flagship product, Genius,™ is a suite of tools for machine learning practitioners to model complex dynamic systems and generate autonomous intelligent agents that continuously reason, plan, and learn. Imagine a Smarter World that elevates human potential through technology inspired by Nature. Learn more at verses.ai, LinkedIn and X. 

On Behalf of the Company

Gabriel René VERSES AI Inc.
Co-Founder & CEO

Investor Relations and Media Inquiries

James Christodoulou
Chief Financial Officer
Verses AI Inc.
IR@Verses.ai
(212) 970-8889

FORWARD LOOKING DISCLAIMER

Certain information included in this newsletter contains statements that are forward-looking, such as statements related to our flagship product, Genius, the commercial application of Genius and our research developments, as well as developments in the AI sector. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and accordingly, such results may differ materially from those expressed in any forward looking statements made by or on behalf of VERSES.

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