Understanding the Role of Artificial Intelligence in the SPAC Bubble

The Securities and Exchange Commission (SEC) is poised to put a damper on Special Purpose Acquisition Company (SPAC) IPOs and mergers: it deepened its investigation into potential conflicts of interest in SPAC underwriting processes, and brought charges against prominent SPACs. Find below an analytical digest of the AI SPAC's state of affairs. A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an IPO for the purpose of acquiring an existing company. IPO investors have no idea what company they ultimately will be investing in.) SPACs seek underwriters and institutional investors before offering shares to the public.