Autonomous trucking startup Kodiak Robotics is set to become publicly traded through a merger with special purpose acquisition company (SPAC) Ares Acquisition Corporation II, the company announced. The deal values Kodiak at approximately $2.5 billion on a pre-money basis. So far, Kodiak has raised around $243 million in funding. The merger is supported by commitments of more than $110 million in financing from its existing investors, including prominent institutional funds such as Soros Fund Management, ARK Investments, and Ares, along with approximately $551 million of cash held in trust. The transaction is expected to close in the second half of 2025.
This move into public markets arrives during a challenging period for autonomous vehicle startups, following notable closures of key companies in the autonomous trucking space, such as Embark and TuSimple. It also coincides with decreased investor enthusiasm towards SPAC transactions, particularly for ventures requiring significant capital investment, such as self-driving and electric vehicle technology.
However, Kodiak stands apart by already generating revenue, an advantage over many other early-stage companies going public via SPAC deals. While revenue is currently modest, Kodiak has logged approximately 2.6 million autonomous miles as it progresses toward commercializing its long-haul trucking plans. More immediately, the firm has strategically pivoted toward off-road autonomous trucking to accelerate its route to market.
Earlier this year, Kodiak achieved a significant milestone with its first delivery of autonomous trucks to customer Atlas Energy Solutions. Atlas, which operates in West Texas’s Permian Basin providing frac sand, has committed to purchasing an initial fleet of 100 trucks—this initial commercial deployment lends credibility to Kodiak’s technology and business approach.
Despite these successes, the road to profitability remains prolonged, reflecting high capital expenditures inherent in the autonomous vehicle sector. Kodiak did not provide immediate details when asked about their available cash runway.
This public debut comes amid broader economic volatility triggered in part by ongoing trade tensions and tariff uncertainties initiated under former President Trump. Concurrently, one of Kodiak’s closest rivals, Aurora Innovation, is preparing to launch fully autonomous commercial trucking services this month.
Kodiak was founded in 2018 by Don Burnette, who brought deep expertise from his tenure in autonomous driving technology development at Google before later cofounding Otto, an autonomous trucking startup quickly acquired by Uber. Otto later became embroiled in a high-profile legal dispute with Waymo, Alphabet’s self-driving subsidiary, concerning trade secret allegations. Burnette had left Otto prior to the transition to Uber, avoiding the legal turbulence that later impacted the company.
Burnette remains convinced trucking will ultimately be the “killer application” for autonomous vehicle technology. In a recent statement, he said, “We believe entering the public markets will accelerate our strategy to expand our existing partner relationships, provide our technology to a broader customer base, and deliver enhanced solutions across the commercial trucking and public sector industries.”
