Andretti’s SPAC Deal Brings Little Cash as Shares Tumble 58%
- Merger with former IndyCar driver’s SPAC saw heavy redemptions
- Boston-based Zapata AI makes industrial generative AI software
Michael Andretti
Photographer: John Lamparski/Getty ImagesThis article is for subscribers only.
Artificial intelligence startup Zapata Computing Holdings Inc. plunged 58% in its debut after a merger with former IndyCar driver Michael Andretti’s blank-check firm brought the company public, despite the vast majority of public investors bailing on the deal.
Shares of Zapata AI, as the Boston-based company is known, slumped to $5.70 each on Monday on the Nasdaq in its first trading day after completing the deal with Andretti Acquisition Corp. The stock’s decline continues a recent trend of volatility for firms that went public via special-purpose acquisition company as the majority of investors pulled their cash from the deal.