Zapata AI, one of the pioneering startups in the quantum software market, has ceased operations as of October 9, 2024. The sudden terminations appears to have been precipitated by an acceleration of payment of about $2.5 million that the company owed to Sandia Investment Management LP. Originally, this payment was not due until a Valuation Date of March 28, 2026, but the company received notice from Sandia that this date had been accelerated to October 8, 2024. So the company had to shut down and terminate almost all of the employees except for a handful that will be needed for a short time to finalize the termination activities. This event is especially surprising because Zapata had just announced a new partnership with MAG Aerospace on October 1, 2024.
Additional information can be found in a filing with the U.S. Securities and Exchange Commission that can be accessed here.
October 12, 2024
