Updated
Updated · Bloomberg · Jun 24
SPAC Deals Open Public-Market Route for AI Data Center Firms, Cohen Says on June 24
Updated
Updated · Bloomberg · Jun 24

SPAC Deals Open Public-Market Route for AI Data Center Firms, Cohen Says on June 24

3 articles · Updated · Bloomberg · Jun 24

Summary

  • AI data center and quantum-computing startups are increasingly turning to SPAC mergers instead of traditional IPOs to reach public markets, according to veteran dealmaker Betsy Cohen.
  • Cohen said the rebound in blank-check companies has made that path more useful for businesses tied to the AI infrastructure build-out, including firms focused on powering data centers.
  • The shift marks a break from the 1990s, when SPACs were first used to channel capital into the steel industry, underscoring how the vehicle is being repurposed for newer technology sectors.

Insights

As AI pushes data centers into orbit, are SPACs a smart investment or a high-stakes gamble on frontier technology?
Will the disciplined 'SPAC 4.0' era finally break the cycle of poor post-merger performance that plagued its predecessors?