Self-described “Spac King” Chamath Palihapitiya is making a high-profile return to special purpose acquisition companies (SPACs), launching a new blank-cheque vehicle after helping drive the pandemic-era SPAC boom that later fizzled.
Palihapitiya, a former Facebook executive and founder of venture capital firm Social Capital, was a leading advocate for SPACs in 2020 and 2021, launching more than ten of his own. Those deals attracted billions of dollars to fund ambitious ventures, including flying taxi startups and companies aiming to commercialize space travel.
However, the SPAC frenzy collapsed amid rising interest rates in 2022, with most of Palihapitiya’s SPACs losing value since their debut. This year, though, SPACs have begun to rebound as market volatility caused by Donald Trump’s tariffs has slowed traditional initial public offerings.
On Monday, Palihapitiya announced his latest vehicle, American Exceptionalism Acquisition Corp, aiming to raise $250 million in an IPO that would list on the New York Stock Exchange under the symbol AEXA, according to US regulatory filings.
The announcement comes two months after Palihapitiya asked his followers on X (formerly Twitter) whether he should return to the SPAC market. Despite over 70% of respondents voting “no,” he said he would “probably” launch the SPAC regardless.
In a letter to supporters of Social Capital, Palihapitiya said his new SPAC will target companies addressing “fundamental risks that come from our interconnected global order while reinforcing American exceptionalism.” He cited sectors including energy production, artificial intelligence, cryptocurrencies, and defense as potential areas of focus.
Palihapitiya criticized traditional IPOs for their “opacity” and for banks mispricing companies, which often led to dramatic first-day stock surges. “While SPACs are not the solution for every issue in the IPO process, I continue to believe that they have an important piece to play in capital formation — and especially now,” he wrote.
He also cautioned that investments in his SPAC carry “substantial risk including the possibility of total loss,” advising retail investors to only participate if they can tolerate speculative losses. Quoting President Trump, Palihapitiya added, “If they do lose their entire capital, they will embody the adage that there can be ‘no crying in the casino.’”
Social Capital did not immediately respond to requests for comment.
