Self-driving truck startup Kodiak Robotics has announced plans to go public through a merger with Ares Acquisition Corporation II, a special purpose acquisition company (SPAC).
This deal values Kodiak, which has secured approximately $243 million in funding to date, at around $2.5 billion before the merger. The transaction is backed by both new and existing institutional investors, including Soros Fund Management, ARK Investments, and Ares, who have collectively provided or pledged over $110 million in financing, alongside about $551 million in cash held in trust.
The merger is anticipated to finalize in the second half of 2025.
Opting to go public via a SPAC is a notable choice, especially as the self-driving truck industry has faced significant challenges, including the shutdowns of prominent players like Embark and TuSimple. Moreover, SPACs have diminished in appeal since their peak in 2021, particularly for capital-heavy ventures such as autonomous vehicle and electric vehicle startups.
Nonetheless, Kodiak has some advantages, primarily its revenue generation, albeit modest. The company claims to have autonomously driven 2.6 million miles and aims to commercialize long-haul trucking operations in the future. In the meantime, Kodiak is focusing on off-road autonomy as a more immediate route to market.
Earlier this year, Kodiak marked its first commercial venture by delivering two autonomous trucks to Atlas Energy Solutions, which has placed an initial order for 100 trucks to assist in frac sand deliveries in the remote Permian Basin of West Texas.
This initial revenue stream enhances the credibility of Kodiak’s technology compared to many pre-revenue startups, which have predominantly been involved in SPAC mergers in recent years, potentially paving the way for additional PIPE (private investment in public equity) funding. However, achieving profitability is expected to be a lengthy journey, given the substantial capital requirements inherent in the autonomous vehicle sector.
TechCrunch inquired with Kodiak about the longevity of their current funding runway but did not receive a timely response.
Kodiak’s entry into the public market occurs during a tumultuous time, largely influenced by President Trump’s tariffs and the accompanying trade war. This development also coincides with one of Kodiak’s key competitors, Aurora Innovation, set to launch fully driverless commercial trucking operations this month.
Kodiak CEO Don Burnette co-founded the company in 2018 after gaining extensive experience in autonomous driving technology, having worked on it at Google before moving on in early 2016 to co-launch Otto, an autonomous vehicle startup alongside Anthony Levandowski, Lior Ron, and Claire Delaunay. Otto was later acquired by Uber, but the venture faced significant legal issues when Waymo sued Uber, alleging trade secret theft by Levandowski. Uber ultimately settled with Waymo, while Levandowski faced criminal charges, pleaded guilty, and was sentenced to 18 months in prison, receiving a pardon from President Trump before serving his sentence.
Burnette, who had left Otto prior to the legal controversies, managed to sidestep the fallout and focus on his vision—that trucking would be the pivotal application for autonomy.
“We believe going public will help accelerate our strategy to strengthen our existing partnerships, extend our technology to a wider customer base, and provide enhanced solutions across the commercial trucking and public sector industries,” Burnette stated.
