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The race to capitalize on artificial intelligence just hit a new gear. Two AI-focused special purpose acquisition companies (SPACs) have filed with the U.S. Securities and Exchange Commission to raise a combined $575 million in initial public offerings, signaling Wall Street’s relentless appetite for AI-driven ventures.

According to filings made Wednesday, Idea Acquisition seeks to raise $350 million through the sale of 35 million units at $10 each, while Armada Acquisition III aims to pull in $225 million with 22.5 million units priced at $10 apiece.

Both SPACs are entering the market amid a surge in investor enthusiasm for artificial intelligence, large language models, and digital transformation tools that promise to redefine industries from finance to entertainment.

Idea Acquisition Aims for AI Software Titans

Idea Acquisition, headquartered in Los Angeles, is zeroing in on AI-powered software firms, particularly those developing large language models, AI hosting infrastructure, and model-creation platforms, according to its SEC filing.

The SPAC’s leadership includes CEO Trevor Harries-Jones, chief operating officer at scanning technology firm OTOY, and CFO Nathan Clark, head of finance at Ondello. Each offered unit will consist of one share of common stock and one-third of a warrant exercisable at $11.50.

The company plans to list on the Nasdaq under the ticker IACOU.

Advising Idea on the transaction are Perkins Coie LLP and Appleby (Cayman) Ltd., while DLA Piper LLP represents the underwriters. Perkins Coie’s legal team includes Elliott Smith, Sarah Ross, and Jordan Leon, with Appleby’s team led by Simon Raftopoulos and Alexandra Low.

Armada III Charts Course in AI, Fintech, and SaaS

Meanwhile, Armada Acquisition III, steered by Stephen Herbert, the former CEO of Cantaloupe Inc., is setting its sights on targets in artificial intelligence, fintech, and software-as-a-service (SaaS) sectors.

The launch follows hot on the heels of Armada II, which recently announced its plan to take digital asset treasury Evernorth Holdings Inc. public in a deal expected to generate over $1 billion in proceeds. The first Armada SPAC made waves back in December 2021 when it unveiled a $2 billion merger with Rezolve, an e-commerce software firm.

DLA Piper LLP and Ogier (Cayman) LLP are advising Armada III, while Loeb & Loeb LLP counsels the underwriters. DLA Piper’s team includes Gerry Williams and Penny Minna, Ogier’s advisors are Bradley Kruger and Cynthia Anandajayasekeram, and Loeb & Loeb’s team features Mitchell Nussbaum and Alexandria Kane.