Zapata Computing Holdings, a company focused on AI and quantum computing technology, has terminated its operations, leading to a significant drop in its shares. The decision was made by the company’s board, which approved the layoff of all employees except for a few who will oversee the winding down process. As recently reported by MarketWatch.
According to Zapata, its financial obligations exceed the fair market value of its assets, prompting this move. Notably, the company does not plan to initiate bankruptcy proceedings or seek stockholder approval for the cessation of operations. This news sent shares plummeting 56% in after-hours trading, with the stock closing at 11 cents per share. Prior to the announcement, Zapata’s shares had finished the regular trading session with a 7.8% gain, closing at 26 cents per share.
Zapata Computing Holdings’ Financial Struggles Lead to Liquidation
Zapata Computing Holdings, has decided to terminate operations. This move comes as no surprise, given the company’s financial obligations exceed its assets’ fair market value. The news sent shockwaves through the market, with shares plummeting 56% in after-hours trading to 11 cents per share.
Initially, the company focused on quantum computing but had moved into more of an AI focus. Despite high-profile tie-ups and a well-publicized SPAC, the company appeared to make headway with a steady decline in its share price. The company has links to Andretti Global. In fact, it was only days ago that the company announced that MAG Aerospace was going to partner with Zapata AI to Deliver a Next-Generation Airborne Surveillance Platform.
This will send a few shockwaves through the industry, both in the AI and Quantum Worlds, as this could lead to pressure on smaller quantum companies like Rigetti and D-Wave which has seen a notice given regarding share price compliance, which have seen their stock prices languish.
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