AI Startup Fusemachines surges towards Nasdaq in historic $200 mln SPAC merger with CSLM acquisition corp

KATHMANDU: In a groundbreaking move within the artificial intelligence (AI) sector, Fusemachines Inc., a renowned provider of enterprise AI products, and CSLM Acquisition Corp. (NASDAQ: CSLM), a special purpose acquisition company, have officially announced a definitive agreement for a business combination. This strategic move is anticipated to transform Fusemachines into a publicly traded company upon completion.

The transaction, valued at $200 million, is set to mark a significant milestone for both companies. Subject to approvals from CSLM’s stockholders, Fusemachines stockholders, and other customary closing conditions, the combined entity is expected to list on Nasdaq under the ticker symbol “FUSE” after the deal concludes. The anticipated completion date is by the end of Q2 2024.

Founded in 2013 by Dr. Sameer Maskey PhD, Fusemachines has been a trailblazer in the Enterprise AI sector for over a decade. Dr. Maskey, an adjunct Associate Professor at Columbia University, has been instrumental in AI research, with a background that includes working at the IBM Watson Research Center.

Fusemachines specializes in helping enterprises overcome complex challenges across various industries by leveraging cutting-edge technologies like AI Studio and AI Engines.

The organization’s global AI talent pool, cultivated through flagship AI Fellowship programs, positions it uniquely to develop industry-specific and problem-specific AI solutions with a high return on investment. Notably, long-term clients such as TIME and OTG have relied on Fusemachines for years.

Upon the announcement, Sameer Maskey, CEO, and Founder of Fusemachines expressed his excitement, stating, “Being listed on NASDAQ is a pivotal milestone for us and a historical one for any company of Nepalese origin.” Maskey believes that the strategic partnership with CSLM will position Fusemachines to lead in democratizing AI and making a lasting impact across industries.

Charles Cassel, CEO, and CFO of CSLM, shared his enthusiasm about the partnership, stating, “We have been methodically searching to identify a long-term, co-investment opportunity for our affiliates, and we are very excited to be partnering with Fusemachines.” He highlighted Fusemachines’ significant operations in Nepal and their cutting-edge development of AI engines and solutions for US and developed market enterprise clients.

The transaction has received unanimous approval from the boards of directors of both Fusemachines and CSLM. However, it is still subject to approval by stockholders and other customary closing conditions, including regulatory approvals.

In connection with the transaction, CSLM affiliates have committed to invest up to $19.44 million in a mix of new PIPE financing in CSLM and pre-closing financing in Fusemachines to cover working capital needs. Additional PIPE financing offers will be considered based on selective strategic criteria.

Tim Gocher, founder and CEO of Dolma Impact Fund, commented on the development, stating, “This is AI made in Nepal, used by global enterprises,” reflecting the global impact of Fusemachines’ innovative solutions.