The driverless trucks powered by its technology have also surpassed 750 hours of commercial operations across western Texas’ Permian Basin without a human driver on board. (Seth Clevenger/Transport Topics)
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Kodiak Robotics is positioning itself to become publicly traded by entering into a definitive business combination agreement with special purpose acquisition company Ares Acquisition Corp. II (AACT), the companies announced April 14.
The Mountain View, Calif.-based autonomous technology company also will rebrand as Kodiak AI as part of the agreement. The company is expected to accelerate its go-to-market strategy globally because of this partnership and the ability to access public markets. The business combination ascribes a pre-money equity value of $2.5 billion to Kodiak.
Kodiak has signed a business combination agreement with Ares Acquisition Corp II (NYSE: AACT), a key step toward going public. A new chapter in scaling Kodiak’s driverless tech across trucking and public sector is beginning.
Learn about the transaction – https://t.co/U53rxxKs3h
— Kodiak (@KodiakRobotics) April 14, 2025
“This is a remarkable milestone for the Kodiak team and reinforces our confidence in the significant value proposition we see in our differentiated driverless technology,” Kodiak CEO Don Burnette 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.”
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Kodiak was founded in 2018 with the goal of commercializing driverless trucking at scale. Its platform automates the driving system by leveraging modular hardware for its artificial intelligence software. It’s also designed to enable technology integration with existing operations to provide a tailored solution. Kodiak aims to address driver shortages, delivery timelines and rising costs. AACT is an affiliate of Ares Management Corp.
“Further, with Kodiak’s disciplined approach to capital management, along with strategic and financial support from Ares, we believe we are well positioned to execute on our long-term growth plans,” Burnette said. “On behalf of the entire Kodiak team, we are thrilled to be working with Ares and AACT as we continue to drive our mission to create a safer and more efficient future for the trucking industry.”
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Kodiak’s platform has logged over 2.6 million autonomous miles in real-world conditions. The driverless trucks powered by its technology have also surpassed 750 hours of commercial operations across western Texas’ Permian Basin without a human driver on board. These trucks represent real operations that have provided a recurring revenue stream.
Deepti Yenireddy of Boon.ai explores how artificial intelligence is transforming workflows in the trucking industry. Tune in above or by going to RoadSigns.ttnews.com.
“As an early mover in autonomous trucking and first to deliver a commercial driverless product to a customer, Kodiak has quickly set itself apart as an industry leader in a significant addressable market,” AACT CEO David Kaplan said. “We are excited to partner with Don and the Kodiak team as they seek to further capitalize on significant industry tailwinds and deliver value for their stakeholders.”
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The Kodiak-AACT combination has already been approved by the boards of directors at both companies. The deal is expected to close in the second half of the year. AACT is expected to provide the combined company about $551 million of cash held in its trust account at closing. The transaction also is being supported by an additional $110 million from some institutional investors, including affiliates of Soros Fund Management, ARK Investments and Ares Management.
“We believe Kodiak’s scalable technology, combined with its established network, position the company to meet the evolving and growing demands of its customers and communities,” AACT Chief Operating Officer Allyson Satin said. “We look forward to lending Ares’ decades of experience investing and navigating through dynamic market environments in support of Kodiak’s long-term goals.”
Kodiak estimates there is a roughly $1 trillion market opportunity that its technology could potentially capture in the U.S. alone. Globally, that figure increases to more than $4 trillion.
