Kodiak Robotics, a startup developing autonomous truck technology, is planning to go public via a merger with Ares Acquisition Corporation II, a special purpose acquisition company (SPAC).
The deal values Kodiak at approximately $1.1 billion in net proceeds and $2.5 billion in total equity value, according to statements from the company.
While the transaction is still subject to approval by shareholders and regulators, it is expected to close in the second half of 2025. Once completed, Kodiak will be listed on the Nasdaq stock exchange under the ticker symbol “KODK”.
What does ‘going public’ mean?
For everyday investors, “going public” simply means that shares in Kodiak will be available to buy and sell on a public stock exchange like the Nasdaq.
Until now, Kodiak has been privately owned, with early backers including venture capital firms such as Battery Ventures and Lightspeed Venture Partners. After the merger, anyone with a brokerage account will be able to invest in the company.
This is not a traditional IPO (initial public offering). Instead, Kodiak is using a SPAC – a shell company already listed on the stock market – to go public more quickly and with less regulatory friction.
These so-called “blank check” companies have become a popular alternative route to listing, especially for high-growth startups in emerging sectors like autonomous driving.
How much will the shares cost?
The share price will initially be tied to the SPAC’s stock, which typically trades around $10 per share before the merger.
Once the deal closes and Kodiak begins trading under its own name and ticker, the market will determine the price based on demand.
At a $2.5 billion valuation, and depending on the number of outstanding shares, the share price could fluctuate significantly in early trading.
Is it a good investment?
That’s the big question. Investors are usually looking at two things:
- Can the company grow in value so they can sell shares for a profit later?
- Can the company eventually become profitable and pay dividends?
Kodiak, like many companies in the autonomous vehicle sector, is not yet profitable. Its value is based on future expectations – that it will successfully commercialize its technology and win a significant share of the autonomous freight market.
Kodiak has made steady progress since it was founded in 2018 by Don Burnette, a former engineer at Google’s self-driving car project (now Waymo) and co-founder of Uber’s autonomous trucking unit, Otto.
The company has tested autonomous long-haul trucks in Texas and claims to have developed one of the most efficient and scalable systems in the industry.
The company’s partners include major companies such as Ikea and Werner Enterprises, and it has reportedly completed thousands of commercial deliveries using its self-driving system, though always with safety drivers on board.
Its technology is modular and designed to be integrated into existing truck platforms, which could give it an edge in scaling up when regulatory conditions allow.
Why the trucking sector looks promising
While fully autonomous passenger cars are still years away from regulatory approval, the freight industry is seen as a more achievable use case.
Highways offer more predictable driving conditions than city streets, and the trucking industry faces a chronic labor shortage, especially for long-haul routes.
Daimler Truck, for example, recently delivered a new fleet of autonomous-ready Freightliner Cascadia trucks to Torc Robotics, another major player in the field.
Traditional truck manufacturers are investing heavily in automation, positioning the industry for rapid adoption once safety and policy hurdles are cleared.
Kodiak is betting that it can be at the forefront of that transition – and that now is the time to tap public markets to fund the next stage of its growth.
The road ahead
With a $2.5 billion valuation, Kodiak’s public debut will test investor appetite for autonomous trucking amid a shifting tech and transportation landscape.
While the road ahead is uncertain, the company has strong technical leadership, credible partnerships, and a clear commercial focus.
As with any high-growth startup entering the public markets, potential investors should weigh the risks alongside the opportunities. For those willing to bet on the future of autonomous freight, Kodiak could be a name worth watching.