Autonomous trucking startup Kodiak Robotics is revealed in a $2.5 billion SPAC merger agreement

After a quiet stretch, SPAC trades are beginning to drip. On Monday, Kodiak Robotics said it was merged with ARES Acquisition Corp II on a deal valued at $2.5 billion.

The newly formed company is called Kodiak AI. Once the transaction is closed, it is expected to bring about approximately $551 million from ARES Acquisition’s trust account. This adds to $110 million in new support from big names such as Soros Fund Management, Ark Investments and Ares Management.

“The combined entity called Kodiak AI will receive approximately $551 million in cash in its trust account for the ARES acquisition upon closing,” Reuters reported.

SPACS (short for Special Purpose Acquisition Company) is a shell company that exposes the goal of merging with actual business with one goal. When that happens, the private companies take over the public list of SPACs.

According to Spacanalytics.com, in 2025 so far, SPACS is behind 23 of the 42 IPOs in the US. Still, investors haven’t celebrated it yet. The DE-SPAC index, which tracks the performance of these merged companies, has fallen by more than 50% this year.

Founded in 2018 by Don Burnett, the former founder of self-driving trucking company Otto, and former venture capitalist Pas Echel, Kodiak develops autonomous driving technology for long-distance trucks. Before Kodiak, Burnett previously co-founded Otto, and Uber’s short-lived autonomous track unit, Paz Eshel, was a former VC.

Founder of Kodiak

The company operates in the Permian Basin and generates stable revenue by transporting cargo for its US clients. It’s already creating its own name as one of the more serious candidates in the self-driving truck space. The startup is backed by battery ventures, CRV, LightSpeed ​​Ventures and Tusk Ventures.

Kodiak hit a milestone earlier this year when it delivered its first “Robotrucks” to Atlas Energy Solutions. Atlas placed initial orders for 100 trucks, indicating a growing demand for autonomous cargo solutions in energy and logistics.

The company says the software has earned more than 2.6 million miles on actual roads.

The pitch is simple. Delivery needs are climbing, human drivers are hard to find, and businesses want to move goods faster without breaking the bank. It creates a strong case of autonomy, especially in trucking.

Kodiak’s name may sound familiar to some of you. Two years ago, when they hit a deal that embedded the software into 800 tracks, we covered them. They were also locked up in a $50 million contract from the US Department of Defense to build an Army autonomous ground vehicle.

“Open market entry expands existing partnerships, delivers our technology to a broader customer base, and provides enhanced solutions across commercial trucking and public sector industries,” Burnett said.

The deal is expected to close in the second half of 2025. The total company trades under the ticker symbol “KDK” but does not share which exchanges are listed.

While SPACS has gained a complex reputation recently, Kodiak is clearly betting that a faster road to the open market will help expand in the innovation-hungry logistics industry.