Andretti (NYSE:WNNR) announced this morning that it has signed a non-binding letter-of-intent (LOI) to combine with a generative AI software company.
The SPAC expects this to progress to a definitive combination agreement in this quarter. But, because there is not yet any guarantee this will happen, Andretti will remain in SPACInsider‘s “Searching” column for now.
Although many SPAC targets have trumpeted the use of AI and machine-learning technologies in their platforms, purely generative AI companies are somewhat novel. Their use in generating text and images has become an increasing source of amusement and alarm.
It also in some ways seems fitting that a SPAC may be the first vehicle to take a pure-play generative AI company to market. OpenAI, the most scaled independent firm in the space, has long fended off IPO speculation despite raising $10 billion from Microsoft over the years.
The company, which created ChaptGPT, also currently has a “capped-profit” company structure that may never be compatible with a public listing even if its management so desired. And, for the time being, it does not.
Any SPAC transaction could potentially benefit from an established predecessor testing the market first and pricing themselves accordingly. But, being the first could also generate some lucrative momentum.
Andretti currently has about $244 million in its trust and is coming up on its initial transaction deadline of July 18. It has set July 14 next week as the date for an extension vote to allow it to extend this to April 18, 2024 without contributing to its trust. It opened this morning at $10.64, above its $10.61 redemption rate.
The SPAC’s sponsor may also automatically extend its deadline by three months two times if the sponsor purchases $2 million private placement warrants for $1 per warrant.
Plum Acquisition Corp. I (NASDAQ:PLMI) has entered into a definitive agreement to combine with digital transformation company Veea for a total enterprise value of approximately $281 million. New York City-based Veea aims to simplify secure edge computing by improving application responsiveness, reducing bandwidth and data transport costs, and eliminating central cloud dependency. The parties expect the transaction to be...
L Catterton Asia (NASDAQ:LCAA) announced this morning that it has upsized the committed financing in its combination with EV sports car maker Lotus to $870 million in total. The latest fuel injection comes in the form of $750 million in convertible notes and PIPE commitments under so far undisclosed terms. Counted purely as a PIPE,...
At the SPAC of Dawn SPAC closing timelines can always be somewhat unpredictable, but PROOF I (NYSE:PACI) has the opportunity today to vie for a recent speed record today. It announced a combination with private aviation firm Volato 118 days ago on August 2 and its shareholders are set to vote to approve the combination...
Dune Acquisition Corporation (NASDAQ:DUNE) announced in an 8-K today that it has once again modified its agreement with sustainable energy firm Global Hydrogen. This amendment marks a reduction in Global Hydrogen’s equity value from $48 million to $43 million, alongside an increase in the available shares of common stock that is for the Global Gas Corporation...
At the SPAC of Dawn After mixed signals for the consumer sector earlier this month, initial Black Friday sales numbers have shown that Americans were not too stuffed for a shopping spree this year. Shoppers bagged between $9.8 billion and $10 billion in goods online, depending on one’s preferred source, either of which would be...