#533: Zipline Raises $1.5 Billion And Expands Its Partnership With Walmart, & More

ARK argues that autonomous delivery, consumer AI advertising, and data-center development are reaching commercialization stages where capital, distribution, and community constraints will shape growth.

• Zipline raised $1.5 billion at a $21.5 billion post-money valuation, after flying 150 million commercial autonomous miles, and plans to expand US manufacturing and hiring.
• Its new Walmart agreement covers 300 additional US delivery sites, while a partnership with Uber targets 1 million drone deliveries per day by the end of 2029. Walmart has completed more than 2 million drone deliveries, and 90% of Americans live within 10 miles of a Walmart store.
• ARK estimates that drone and robotic delivery could reduce last-mile costs from $15 per order to below $1 at scale, a decline of approximately 90%.
• OpenAI's advertising business reached a $1 billion annualized run rate by the end of August 2026, while ChatGPT handled the equivalent of approximately 20% of Google's search volume and only about 5% of its more than 1 billion weekly users paid for subscriptions.
• US midterm election results increased uncertainty around data-center construction. Texas Governor-elect Gina Hinojosa proposed pausing new approvals, while currently permitted projects may extend into 2028; Microsoft has developed cooling systems that eliminate water evaporation.

Takeaway: ARK sees Walmart and Uber as important distribution partners for Zipline, advertising as a major future source of consumer AI revenue, and community agreements plus technical solutions as prerequisites for continued data-center expansion.