Innodata Launches Federal Business Unit to Support Accelerating AI Innovation Across U.S. Government

New Unit Positions Company to Serve Defense, Intelligence, and Civilian Agencies with Proven AI Data Engineering, Generative AI, and Agentic AI Solutions

NEW YORK, NY / ACCESS Newswire / November 6, 2025 / INNODATA INC. (Nasdaq:INOD) today announced the launch of Innodata Federal, a dedicated government-focused business unit designed to deliver mission-critical AI solutions to U.S. defense, intelligence, and civilian agencies. The new unit emerges as federal acquisition authorities are rapidly evolving to prioritize commercial innovation through Other Transaction Authorities (OTAs), Commercial Solutions Openings (CSOs), and streamlined procurement pathways that favor speed, flexibility, and proven commercial capabilities.

The launch, announced alongside Innodata's earnings release and a press release announcing that General (Retired) Richard D. Clarke, a retired four-star Army general and former Commander of U.S. Special Operations Command, has joined the Innodata board, positions the Company to capitalize on an expanding federal AI market. Innodata Federal has already gained early traction through strategic partnerships with leading defense technology companies, defense contractors, and direct government awards, illustrating expected strong market demand for the Company's end-to-end AI capabilities.

Dual-Track Strategy Expected to Deliver Immediate Revenue and Long-Term Growth

Innodata Federal's strategic approach is expected to balance near-term revenue generation with sustainable growth. The unit has established prime contractor partnerships that have already resulted in revenue while simultaneously building the performance credentials and direct relationships essential for larger government contracts.

Jack Abuhoff, CEO of Innodata, said "Innodata Federal represents a strategic investment in a high-growth market where we believe our capabilities align exceptionally well with government modernization priorities. We believe we have structured our approach to succeed across all acquisition channels and timeframes, whether rapid OTA awards, prime contractor partnerships, or traditional procurement vehicles. The early momentum we are seeing - from major defense technology leaders to direct government awards - validates both our technical capabilities and our positioning for growth as the federal AI market expands."