Zapata AI to Go Public via Merger with Andretti Acquisition Corp.

74
SHARES
1.2k
VIEWS

Zapata Computing, Inc. (commonly known as “Zapata AI”), a pioneer in Industrial Generative AI software, and Andretti Acquisition Corp., a public special purpose acquisition company, have declared their intent to merge. Post-merger, the combined entity is expected to be listed on the New York Stock Exchange with the ticker symbol “ZPTA”.

Originating from Harvard University in 2017, Zapata AI aims to harness the potential of generative AI and quantum techniques for enterprises. The company’s technology, based on over 100 patents and applications globally, operates on traditional hardware and promises cost-effective, swift, and precise AI solutions. Their offerings include the Zapata AI Prose™, a comprehensive language AI model, and Zapata AI Sense™ for generating new analytics solutions. This tech suite runs on their full-stack Quantum AI platform, Orquestra®, which is adaptable to various cloud environments like Microsoft Azure and AWS.

With a growing network of partnerships including Amazon, Google, IBM, and NVIDIA, Zapata AI aims to revolutionize AI software solutions. Their collaboration with Andretti Autosport, which uses Orquestra® for strategic race decisions in the NTT INDYCAR® SERIES, highlights the tangible benefits of adopting Industrial Generative AI solutions.

Zapata’s CEO, Christopher Savoie, believes the merger will bolster their market presence, tapping into a significant opportunity in generative AI. Michael Andretti of Andretti Acquisition Corp. emphasized Zapata’s transformative AI solutions, having experienced their impact first-hand through Andretti Autosport’s partnership.

The deal estimates Zapata’s value at roughly $200 million pre-money. Existing shareholders will retain all their equity, translating to 20.0 million shares priced at $10.00 each. Post-transaction, the combined company’s equity value is projected to range from $281 million to $365 million, contingent on final redemption figures.

Both companies’ Boards of Directors have greenlit the transaction, pending shareholder and regulatory approval. The merger is slated to conclude in early 2024. Further transaction details will be available in the official SEC filings by Andretti Acquisition Corp.

  • Zapata AI is the Industrial Generative AI software company developing solutions to enterprises’ hardest problems
  • Transaction values the company at an implied pre-money equity value of $200 million
  • Andretti Acquisition Corp. is familiar with Zapata AI through a commercial partnership with Andretti Autosport, in which Zapata AI’s Orquestra® platform provides the Andretti INDYCAR® team with real-time analytics to inform race strategy and deliver performance edges
  • Business combination expected to provide up to approximately $84 million to the pro forma company’s balance sheet, depending on the level of redemptions
  • Proceeds will be used to fuel continued innovation, drive enterprise customer acquisition and advance Zapata AI’s growth strategy
  • Zapata AI’s visionary CEO and leadership team to lead the combined company

Related Posts

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?