Zapata AI partners with Andretti Global in AI tech deal

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Zapata AI partners with Andretti Global in AI tech deal

BOSTON - Zapata AI (NASDAQ:ZPTA), a leader in industrial generative AI, has announced a $1 million expansion of its partnership with Andretti Global, focusing on advancing the racing team's technological capabilities.

This collaboration, formalized on March 28, 2024, positions Zapata AI as Andretti's official AI Partner and is expected to contribute to the company's sequential quarter-over-quarter bookings growth.

Under the expanded agreement, Zapata AI will develop an AI-ready database application to manage dynamic records of Andretti's racing configurations. This tool aims to optimize racing setups by providing detailed historical data on car performance. The partnership also includes co-branding and marketing initiatives to highlight Andretti's innovation in series such as INDYCAR®, INDY NXT, Formula E, and others.

Michael Andretti, CEO and Chairman of Andretti Global, lauded the partnership's success in enhancing the team's race strategy and engineering efforts. Zapata AI's solutions have delivered real-time insights that have been pivotal in the team's performance.

Zapata AI's generative AI and machine learning expertise have been instrumental in various areas, including tire degradation analysis, fuel savings, lap time prediction, and yellow flag predictive modeling. The company's proprietary platform, Orquestra®, has been a cornerstone in this strategic partnership since February 2022.

Christopher Savoie, co-founder and CEO of Zapata AI, emphasized the broader impact of their work with Andretti, noting that the challenges faced in racing are analogous to those in industries such as telecom, manufacturing, and defense. Savoie highlighted the potential of generative AI in enabling better decision-making and predictive capabilities in dynamic environments.

This announcement follows a demonstration of Zapata's yellow flag prediction capability during a 2024 INDYCAR® race, showcasing the practical applications of their technology in high-pressure situations.

The partnership is based on a press release statement and reflects the ongoing commitment between Zapata AI and Andretti Global to leverage AI for competitive advantage in the racing world and beyond.

InvestingPro Insights

Zapata AI's recent announcement of an expanded partnership with Andretti Global has put a spotlight on the company's commitment to leveraging its AI expertise in high-performance sectors. An analysis of Zapata AI's financial health and market performance, courtesy of InvestingPro, provides a deeper understanding of the company's current standing.

InvestingPro Data reveals that Zapata AI has experienced a significant revenue growth of 10.01% over the last twelve months as of Q4 2023, indicating a positive trajectory in sales. However, this growth is juxtaposed with a slight quarterly revenue decline of 0.67% in Q4 2023, suggesting a potential need for strategic adjustments to sustain the momentum.

The company's Gross Profit Margin stands at 19.37%, which, according to an InvestingPro Tip, could be seen as weak compared to industry standards. This might reflect upon the company's cost management and pricing strategies, areas that could be pivotal for future profitability.

Despite these challenges, Zapata AI's partnership with Andretti Global may serve as a catalyst for innovation and market expansion. Yet, another InvestingPro Tip points out that Zapata AI is trading near its 52-week low, with its price at only 13.19% of the 52-week high.

This could indicate a potential undervaluation or a market sentiment that is not fully aligned with the company's strategic moves.

For those interested in a comprehensive analysis, there are additional InvestingPro Tips available that delve into Zapata AI's financials and market performance. Subscribers can uncover these insights and more by visiting https://www.investing.com/pro/ZPTA and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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