What happened
Shares of Gores Holdings VI (GHVI), a special purpose acquisition company (SPAC) that plans to merge with spacial-data company Matterport, jumped 15% in June, according to data provided by S&P Global Market Intelligence, after announcing some key partnerships.
The biggest was a partnership with Facebook (META 1.54%) to use artificial intelligence (AI) and a data set from 3D spaces in academic research. Potentially more important in the long term was a program that allows developers and partners to build apps and integrations for Matterport.
Investors are still speculating on Matterport through the SPAC stock because the merger hasn't officially happened yet. But there haven't been any roadblocks, and management expects the merger to happen within about a month.
A "dollhouse" view of a house by Matterport. Image source: Getty Images.
So what
The deal with Facebook will put Matterport's spatial data in the hands of academic researchers working with Facebook AI Research. The data set is called the Habitat-Matterport 3D Research Data Set (HM3D) and will be free to researchers in hopes of developing AI and 3D computer-vision technology.
If researchers succeed in creating valuable tools with this data, they could build products and software using Matterport's offerings. For example, spatial data from a home or business could be uploaded to a robot, which could immediately sense where it is in the space and where it can go to perform tasks. Previously, this data would need to be collected natively on the device.
Once developers have these tools in their hands, they can build applications and integrations, which is why the second announcement is so important. Matterport is trying to get developers to build an ecosystem based on the company's data, which could be add-ons to a Matterport subscription.
Now what
Matterport is trying to build a platform of valuable tools with its spatial-data platform, and these moves are a step in the right direction. After growing revenue 108% to $27 million in the first quarter of 2021, the company has a lot of momentum. And with smartphone apps now able to capture spaces, it's making this process ubiquitous.
I think Matterport is one of the most exciting growth stocks to hit the market in the last few years, and there's a lot of potential for it. Getting data into the hands of developers could help unlock the company's value and keep its spatial data set growing. Last month, the market was bullish on the news from Matterport; now, we're waiting to make sure the company trades publicly after its merger with Gores Holdings VI is complete.
