We address the issue of the worldsheet and spacetime covariant formulation
for matrix strings. The problem is solved in the limit of vanishing string
coupling. To go beyond the g(s) = 0 limit, we propose a topological quantum
field theory as a twisted candidate. Our model involves the generalized oc
tonionic or SU(4) instanton equations defined in eight dimensions for a sup
ersymmetric U(N) Yang-Mills field living on a special holonomy manifold. Th
e question of untwisting this matrix model into an anomaly free theory enli
ghtens the need for an "extended" 2d-gravity sector, that we suggest could
be (partially twisted) W-gravity. (C) 1999 Published by Elsevier Science B.
V. All rights reserved.