Serve Robotics (SERV) surged 62% in pre-open trading Friday after AI giant NVIDIA (NVDA) disclosed a 10% stake in the company.
A 13G filing Thursday afternoon revealed that NVIDIA owned 3,727,033 shares of SERV.
While meaningful, the stake is not new. The stake was owned as of July 31, 2023, when the company merged into a SPAC.
Patricia Acquisition Corp., a special purpose acquisition company (SPAC), has successfully merged with Serve Robotics Inc., a company specializing in robotics technology. The merger was finalized on July 31, 2023, resulting in Patricia Acquisition Corp. rebranding itself as Serve Robotics Inc.
As part of the business arrangement, Serve Acquisition Corp., a subsidiary of Patricia Acquisition Corp., merged into Serve Robotics Inc., with the latter emerging as the surviving entity. This strategic combination is part of a broader trend of SPACs facilitating public listings for burgeoning tech companies.
In conjunction with the merger, NVIDIA increased its investment in the newly formed Serve Robotics Inc. Initially, NVIDIA Corporation (NASDAQ:NVDA) owned 2,676,904 shares of common stock in the company, which included an additional 62,500 shares acquired during a concurrent private placement by Serve Robotics Inc.
Further solidifying its stake, on January 2, 2024, NVIDIA Corporation received a convertible promissory note from Serve Robotics Inc., which was then converted into 1,050,129 shares of common stock on April 22, 2024. This conversion has bolstered NVIDIA's position as a significant shareholder in Serve Robotics Inc.