Zapata Computing, which was founded in 2017 as a Harvard spinout that worked on software and later focused on AI, is ceasing operations, according to an SEC filing last week. Zapata had gone public a year earlier, through the purchase of a SPAC by Andretti Acquisition Corp. It was trying to navigate the world of quantum and AI and earlier this year it had formed a partnership with quantum computer maker D-Wave.
Christopher Savoie, has stepped down as President and CEO. Sumit Kapur, the company’s CFO will serve as CEO and chief executive officer. Here is a review from last week SEC file:
“On October 7, 2024, the board of directors of the Company agreed to change the Company’s operations. The Company currently has approximately $2.3 million of indebtedness based on Senior Secured Promissory Notes. Such record keeper has a security interest in all Company assets. In addition, in addition to the Sandia Project described above, the Company has other debts to other creditors, and expects to incur additional costs to cease operations. The market value of the Company’s assets does not exceed the amount of the Company’s current expected earnings. Therefore, the company believes that it is currently unable, and it is clear that it will not be able, to meet all of its financial obligations and that, following the company’s efforts to meet its current financial requirements, it is not possible for any remaining assets to be distributed to the shareholders of the common stock of company. In addition, due to the failure of the company, the company does not expect to start the bankruptcy process or seek the approval of the shareholders to stop its operations.
“Following the termination of employment of all employees of the company and the suspension of the Company’s operations, the Company believes that it no longer has the ability to manage its financial reporting or disclosure processes. We cannot be certain that the Company’s current filings with the Securities and Exchange Commission reflect all of the information required to be disclosed or that prior disclosures are still current.
The details of the next steps are unclear.
An expert Bob SutorVP and Practice Leader, Emerging Technologies, Futurum, said “It’s unfortunate when this happens because of employees and shareholders. Unfortunately, being quantum or AI does not protect startups or young companies from the economic conditions of the market. what you spend and you have solid management, you can’t survive when your ROI is so far. I don’t see this event as a quantum corporate case.”
Whether this is an explosion in the quantum start-up market – of course it is not unexpected – or perhaps a sign of more serious problems for the quantum industry when the demand for restoration is growing is not known. Going public is always dangerous. Both D-Wave (NYSE: QBTS ) and Rigetti (Nasdaq: RGTI ) are facing off to remove.
Before going public, Zapata solidified his interest in Gen AI. Savoie he said at the time, “Our experts and scientists have spent years building, testing, and refining our existing software to put Zapata AI – and our customers – at the forefront of the AI ​​revolution. We believe artificial AI is creating a one-stop shop, and the capital and relationships it delivers through the business partnership we are participating in the largest market that can be connected where we have the ability to produce cheap products for our customers and suppliers.
Listen to yourself.
Link to SEC filing, https://ir.zapata.ai/static-files/5cff455d-8270-44d2-80ee-55e5a424da8d
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