Zapata AI, a software company specialising in industrial generative AI, is set to become a publicly listed company in the US following a business combination agreement with Andretti Acquisition Corp. The deal values Zapata AI at $200 million and is expected to provide up to $84 million to the company’s balance sheet. Zapata AI’s technology, which includes the Orquestra platform, is used by the Andretti INDYCAR team for real-time analytics. The company, which was spun out of Harvard University in 2017, also works with partners including Amazon, Google, IBM, and NVIDIA.
Zapata AI and Andretti Acquisition Corp. Announce Business Combination
Zapata AI, an industrial generative AI software company, and Andretti Acquisition Corp., a publicly traded special purpose acquisition company, have announced a definitive business combination agreement. This agreement will result in Zapata AI becoming a publicly listed company in the U.S. The combined company is expected to be listed on the New York Stock Exchange under the new ticker symbol “ZPTA”.
“Our engineers and scientists have spent years building, testing and refining our proprietary software to put Zapata AI—and our customers—at the forefront of the generative AI revolution,”
Christopher Savoie, CEO of Zapata AI.
The business combination is expected to provide up to approximately $84 million to the pro forma company’s balance sheet, depending on the level of redemptions. The proceeds will be used to fuel continued innovation, drive enterprise customer acquisition and advance Zapata AI’s growth strategy. The leadership team of Zapata AI will lead the combined company.
Zapata AI’s Proprietary Quantum Techniques and Offerings
Zapata AI was established in 2017, spinning out of Harvard University. The company’s mission is to create significant value for enterprises with generative AI and other advanced algorithms that leverage quantum techniques. These proprietary quantum techniques run on classical (non-quantum) hardware such as CPUs and GPUs. They have the potential to revolutionise existing AI solutions by making them cheaper, faster and more accurate.
The company’s offerings include Zapata AI Prose™, a large language model generative AI solution, and Zapata AI Sense™, which generates new analytics solutions to complex industry problems. These industrial solutions run on Zapata AI’s full-stack Quantum AI software platform, Orquestra®, enabling the company to train and deliver AI models within customers’ hybrid cloud and multicloud environments.
Zapata AI’s Partnerships and Growth Strategy
Zapata AI works with a growing ecosystem of partners including Amazon, Google, Andretti Autosport, IBM, NVIDIA, Quantinuum, IonQ, and DARPA. By providing enterprises with a complete AI software stack and advanced AI models, Zapata AI aims to provide AI and machine learning software solutions.
Andretti Acquisition Corp. has a commercial partnership with Zapata AI, which leverages Orquestra® to gain a performance edge in race strategy for NTT INDYCAR® SERIES events. This partnership showcases how brands are adopting and utilising Zapata AI’s Industrial Generative AI solutions to solve complex problems and enhance their competitive positions.
Transaction Overview and Expected Closing
The transaction values Zapata at an implied pre-money equity value of $200 million, with existing Zapata shareholders set to roll over 100% of their equity into the combined entity. The pro forma equity value of the combined company is expected to be between $281 million and $365 million, depending on the level of redemptions.
The Boards of Directors of each of Zapata and Andretti Acquisition Corp. have approved the transaction. The transaction will require the approval of the stockholders of Andretti Acquisition Corp. and is subject to satisfaction or waiver of the conditions stated in the business combination agreement and other customary closing conditions, including the receipt of certain regulatory approvals. The transaction is expected to close in the first quarter of 2024.
About Zapata AI and Andretti Acquisition Corp.
Zapata AI is an Industrial Generative AI company, revolutionising how enterprises solve their hardest problems with its powerful suite of Generative AI software. The Company was founded in 2017 and is headquartered in Boston, Massachusetts.
Andretti Acquisition Corp. is a special purpose acquisition company formed for the purpose of effecting a business combination with one or more businesses or entities. Two key members of the management team are racing legends Mario and Michael Andretti.
“We believe generative AI is shaping a once-in-a-generation opportunity, and the capital and relationships afforded through this business combination will only strengthen our market position. We are participating in an enormous total addressable market where we have the potential to create disproportionate value for our customers and our investors.”
Christopher Savoie, CEO of Zapata AI.
Michael Andretti, Co-CEO of Andretti Acquisition Corp., commented, “Zapata AI’s Industrial Generative AI solutions have demonstrated their applicability helping enterprises across a range of industries solve complex problems and make better business decisions – we have experienced this firsthand in the AI-driven race strategy solutions and advanced analytics capabilities they are delivering to Andretti Autosport. The Company is already working with some of the world’s largest and most recognizable organizations, and based on our understanding of its vast capabilities, compelling go-to-market strategy and ambitious growth plan, we believe there is tremendous enterprise revenue opportunity.”
Quick Summary
Zapata AI, a software company specialising in generative AI solutions, is set to become a publicly listed company in the US following a business combination agreement with Andretti Acquisition Corp. The company’s proprietary quantum techniques, which run on classical hardware, have the potential to revolutionise existing AI solutions by making them cheaper, faster and more accurate.
- Zapata AI, an industrial generative AI software company, is set to merge with Andretti Acquisition Corp., a publicly traded special purpose acquisition company.
- The deal values Zapata AI at $200 million and will result in the company becoming publicly listed on the New York Stock Exchange under the ticker symbol “ZPTA”.
- Zapata AI, which was spun out of Harvard University in 2017, uses proprietary quantum techniques to develop AI solutions that are cheaper, faster, and more accurate.
- The company’s offerings include Zapata AI Prose, a large language model generative AI solution, and Zapata AI Sense, which generates new analytics solutions to complex industry problems.
- Zapata AI works with a range of partners including Amazon, Google, Andretti Autosport, IBM, NVIDIA, Quantinuum, IonQ, and DARPA.
- The merger with Andretti Acquisition Corp. will provide Zapata AI with access to capital markets and enhanced financial flexibility to fuel its technical roadmap and growth strategy.
- The transaction is expected to close in the first quarter of 2024, subject to approval from Andretti Acquisition Corp.’s stockholders and regulatory approvals.
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