Vocodia Holdings Corp. (OTC: VHAI) Targets "Shadow AI" with Acquisition of PrivacyPal.ai; Introduces Solution to the "Fidelity Paradox"

BOCA RATON, Fla., Jan. 09, 2026 (GLOBE NEWSWIRE) -- Vocodia Holdings Corp. (“Vocodia” or the “Company”) today announced a major strategic pivot to address the single greatest threat to the adoption of Artificial Intelligence: data security. In a move to position the Company as a leader in trustworthy AI infrastructure, Vocodia has initiated a transaction to acquire PrivacyPal LLC ("PrivacyPal.ai").

This move is a declaration of Vocodia’s expanded mission. While the industry races to build faster and smarter AI, Vocodia is positioning itself as the infrastructure of trust—aiming to ensure that businesses and individuals can use these powerful tools without surrendering their digital sovereignty.

The Core Problem: The "Fidelity Paradox"

As explained by PrivacyPal leadership, the market is currently trapped in a "Fidelity Paradox." To get useful results from AI, users must provide detailed context (high fidelity). However, providing that context often creates a security breach.

"When companies try to secure AI by blocking data, they starve the model of context," said the Company. "This renders the AI useless, which forces employees to bypass security just to do their jobs. Vocodia and PrivacyPal solve this by sanitizing data without destroying its utility."

Benefits by Market Segment

For the Enterprise: "Turning the Lights On" Large organizations face a massive liability when employees use public AI tools like ChatGPT or Claude on company devices.

• Total Visibility: PrivacyPal is designed to "turn the lights on," giving the C-Suite immediate insight into how their workforce is using AI.
• Policy Enforcement: It enforces data governance policies in real-time within the browser, preventing trade secrets or PII from ever reaching public servers.

For Small & Medium Business (SMB): Innovation Without Risk SMBs need to move fast but lack the budget for a dedicated cybersecurity team.

• Plug-and-Play Security: This acquisition offers SMBs a "fractional CISO" solution. It allows smaller teams to adopt cutting-edge AI tools for marketing and operations immediately, with enterprise-grade guardrails pre-installed.
  
  
  
  

For the Individual: Digital Sovereignty

• Personal Protection: For consultants, freelancers, and private users, this technology offers a "personal firewall." Users can draft sensitive emails, analyze medical data, or manage finances with AI, confident that their personal life is not being harvested to train a public model.
  
  
  
  

Leadership Commentary

Brian Podolak, CEO of Vocodia, stated: "Vocodia is stepping in to address the tension between efficiency and privacy. We believe the future belongs to platforms that prioritize user security. Our goal is to build a shield around the user, designed to ensure that while the AI works for you, your proprietary data remains within your control."

Jason Melo, CEO of PrivacyPal, added: "Our mission is to allow organizations to harness the full power of the world's smartest AI models without compromising a single byte of their privacy. We built PrivacyPal to sit at the point of interaction—the browser—so we can balance accuracy with security. We are excited to join Vocodia to bring this solution to a global scale."

Watch the Explainer Video

To understand the technology and the "Fidelity Paradox" in more detail, view the full presentation by PrivacyPal CEO Jason Melo here:

Market Rationale

Vocodia believes this strategy positions the Company to capitalize on the growing demand for Privacy-Enhancing Technologies (PETs). As AI adoption matures, the Company anticipates increased demand for compliance and security layers that satisfy regulatory frameworks such as GDPR and CCPA.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "believe," "project," "estimate," "expect," strategy," "future," "likely," "may,", "should," "will" and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risks and uncertainties more fully in the section captioned "Risk Factors" in the Company's Registration Statement on Form S-1 related to the public offering (SEC File No. File No. 333-269489) and other reports we file with the SEC. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. Forward-looking statements contained in this announcement are made as of this date and undertake no duty to update such information except as required under applicable law.

Investor Relations Contact: