Zapata Computing Holdings Inc., a pioneering startup in the quantum software market, has ceased operations as of October 9, 2024. The company’s board approved a plan to shut down due to its inability to meet financial obligations, according to an SEC filing. The sudden closure was precipitated by the acceleration of a $2.5 million payment owed to Sandia Investment Management, originally due on March 28, 2026, but moved up to October 8, 2024.
Zapata also owes an additional $2.3 million to other creditors, with the value of its assets insufficient to cover these debts. As a result, the company has terminated nearly all its employees, except for a handful required to finalize the termination activities. Chief Financial Officer Sumit Kapur, who was appointed CEO following the resignation of founder Christopher Savoie on October 7, 2024, is among the few staff members retained to manage the cessation of operations.
Zapata’s operations come to a halt
Zapata, originally focused on quantum computing when it formed in 2017, had shifted primarily to generative AI technologies. The company completed a business combination with Andretti Acquisition Corp., a special purpose acquisition company (SPAC), and began trading on the Nasdaq under the ticker symbols “ZPTA” and “ZPTAW” on April 1, 2024.
However, the stock faced a chilly reception, falling 60% on its debut and dropping another 56% on news of the liquidation. The company acknowledged in its filing that it no longer maintains effective internal controls over financial reporting, raising concerns about the accuracy of future disclosures. Due to the insufficient market value of its assets, Zapata does not expect to have any resources left for its shareholders after meeting creditor obligations.
As the company winds down, creditors will be prioritized in any financial distributions, likely leaving shareholders with little to no returns. The board of directors officially approved the closure on October 7, 2024, signaling the end of the company’s business activities.
