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diff --git a/python/openvino/demo/ip/intel_ai_ip/verilog/dla_lt_data_conversion.sv b/python/openvino/demo/ip/intel_ai_ip/verilog/dla_lt_data_conversion.sv
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+// Copyright 2020-2024 Intel Corporation.
+//
+// This software and the related documents are Intel copyrighted materials,
+// and your use of them is governed by the express license under which they
+// were provided to you ("License"). Unless the License provides otherwise,
+// you may not use, modify, copy, publish, distribute, disclose or transmit
+// this software or the related documents without Intel's prior written
+// permission.
+//
+// This software and the related documents are provided as is, with no express
+// or implied warranties, other than those that are expressly stated in the
+// License.
+
+/**
+ * dla_lt_data_conversion.sv
+ *
+ * The LT data conversion is responsible for converting U8 integers to FP16 values
+ * for inference in the PE array.
+ *
+ */
+`resetall
+`undefineall
+`default_nettype none
+
+module dla_lt_data_conversion #(
+  parameter int DDR_BYTES,
+  parameter int DATA_ELEMENT_WIDTH=8,
+  parameter int ELEMENTS_PER_CYCLE
+) (
+  input wire clk,
+  input wire i_valid,
+  input wire [8*DDR_BYTES-1:0] i_data,
+  output wire [ELEMENTS_PER_CYCLE-1:0][15:0] o_fp16_val,
+  output wire o_valid
+);
+
+  parameter BASE_EXP = 15 - 1;
+  logic [ELEMENTS_PER_CYCLE-1:0][15:0] fp16_val;
+  assign o_fp16_val = fp16_val;
+
+  logic data_valid;
+  assign o_valid = data_valid;
+
+  always_ff @( posedge clk ) begin
+    data_valid <= i_valid;
+    // data_valid[1] <= data_valid[0];
+  end
+
+  for (genvar in_token = 0; in_token < ELEMENTS_PER_CYCLE; in_token++)
+  begin : g_fp16
+    logic [7:0] sample;
+    logic [1:0][3:0] exp_offset_nib;
+    logic [1:0][7:0] shifted_val_nib;
+    logic token_in_progress;
+    assign sample = i_data[(in_token*DATA_ELEMENT_WIDTH)+:DATA_ELEMENT_WIDTH];
+    // split token into nibbles and mux calculation...
+
+    always_ff @(posedge clk)
+    begin
+      token_in_progress <= 0; // so that the last value is still converted.
+      if (i_valid)
+      begin
+        token_in_progress <= 1;
+        exp_offset_nib[0] <= 0;
+        shifted_val_nib[0] <= 0;
+
+        if (sample[3])
+        begin
+          exp_offset_nib[0] <= 4;
+          shifted_val_nib[0] <= {sample[2:0], 5'b0};
+        end
+        else if (sample[2])
+        begin
+          exp_offset_nib[0] <= 3;
+          shifted_val_nib[0] <= {sample[1:0], 6'b0};
+        end
+        else if (sample[1])
+        begin
+          exp_offset_nib[0] <= 2;
+          shifted_val_nib[0] <= {sample[0], 7'b0};
+        end
+        else if (sample[0])
+        begin
+          exp_offset_nib[0] <= 1;
+          shifted_val_nib[0] <= 0;
+        end
+      end
+    end
+
+    always_ff @(posedge clk)
+    begin
+      if (i_valid)
+      begin
+        exp_offset_nib[1] <= 0;
+        shifted_val_nib[1] <= 0;
+        if (sample[7])
+        begin
+          exp_offset_nib[1] <= 8;
+          shifted_val_nib[1] <= {sample[6:0], 1'b0};
+        end
+        else if (sample[6])
+        begin
+          exp_offset_nib[1] <= 7;
+          shifted_val_nib[1] <= {sample[5:0], 2'b0};
+        end
+        else if (sample[5])
+        begin
+          exp_offset_nib[1] <= 6;
+          shifted_val_nib[1] <= {sample[4:0], 3'b0};
+        end
+        else if (sample[4])
+        begin
+          exp_offset_nib[1] <= 5;
+          shifted_val_nib[1] <= {sample[3:0], 4'b0};
+        end
+      end
+    end
+
+    logic [4:0] exp_offset;
+    logic [4:0] exp_offset_reversed;
+    logic [7:0] shifted_val;
+
+    always_ff @(posedge clk)
+    begin
+      if ((i_valid) || token_in_progress)
+      begin
+        if (exp_offset_nib[1] > exp_offset_nib[0])
+        begin
+          exp_offset <= exp_offset_nib[1] + BASE_EXP;
+          shifted_val <= shifted_val_nib[1];
+        end
+        else if (exp_offset_nib[0] > 0)
+        begin
+          exp_offset <= exp_offset_nib[0] + BASE_EXP;
+          shifted_val <= shifted_val_nib[0];
+        end
+        else
+        begin
+          exp_offset <= 0;
+          shifted_val <= 0;
+        end
+      end
+    end
+
+
+
+    assign fp16_val[in_token] = {
+      1'b0,
+      exp_offset,
+      shifted_val,
+      2'b0
+    };
+  end
+endmodule