Mark Cuban-Backed ‘Physical AI’ Startup Nears $500 Million SPAC Deal

A startup backed by Mark Cuban that makes hardware and software used to more safely control and operate autonomous robots plans to go public via a blank-check vehicle in a deal valuing it at $500 million.

Fort Robotics Inc. will combine with Newbury Street II Acquisition Corp. to create what it calls “the first publicly traded company dedicated principally to safe and scalable deployment of physical AI,” according to a statement reviewed by Bloomberg News. The merged company, to be named Fort Robotics Holdings Inc., will have an enterprise value of about $557 million.

The transaction is comprised of around $182 million of cash from Newbury Street II’s trust account, the statement shows. It also includes about $31 million from both a private investment in public equity, or PIPE, and an agreement from new and existing investors including Cuban, Tiger Global and Prologis Ventures.

Philadelphia-based Fort Robotics is expected to list on the Nasdaq Stock Market under the symbol FROB, according to the statement.

Founded in 2018, Fort Robotics says it has over 600 customers including Google DeepMind, Cobot, Zoox, RIVR, Carnegie Robotics, Textron, Forterra, Genie, Ocado, Oxa and DoorDash. It provides safety solutions across the robotics industry.

“Physical AI will change the way we work in every industry, and this will be a game changer for workers, organizations and governments worldwide,” Fort Robotics founder and Chief Executive Officer Samuel Reeves said in the statement. “Fort’s mission is to ensure robots cause no harm and we are dedicated to pioneering and building a shared framework for trust that robot manufacturers, integrators, end users, regulators, insurers, governments and any other interested party can rely on.”

Cuban participated as a returning investor in a funding round last August for Fort Robotics, according to a statement at the time. In addition to Tiger Global and Prologis Ventures, Five Eleven Partners is also among the company’s investors.