'SPAC King' Chamath Palihapitiya Returns With $250 Million 'American Exceptionalism' Deal Targeting AI, Energy, Defense

Venture capitalist Chamath Palihapitiya, once dubbed the "SPAC King," is returning to Wall Street with a new blank-check deal. American Exceptionalism Acquisition Corp. filed a Form S-1 on Monday with the U.S. Securities and Exchange Commission, seeking to raise $250 million through an initial public offering.

New Vehicle with Strategic Focus

The Cayman Islands–registered Special Purpose Acquisition Company will trade under the ticker AEAC.U once public, according to SEC filings. The firm plans to target industries tied to artificial intelligence, clean energy, and U.S. defense technology — sectors Palihapitiya described as "core to maintaining American leadership."

Lessons From Past SPACs

The move comes after a social media poll in June showed 70% of respondents opposed to his launching another SPAC, citing steep investor losses from earlier deals. Data compiled by Sigma shows investors who put $100 into each of Palihapitiya's SPACs at their December 2021 peak would now face losses of about 73%.

Past ventures included Clover Health Investments Corp. (NASDAQ:CLOV), Opendoor Technologies Inc. (NASDAQ:OPEN), SoFi Technologies Inc. (NASDAQ:SOFI) and Virgin Galactic Holdings Inc. (NYSE:SPCE). Many of those companies have seen valuations collapse, with Clover and Akili Inc. approaching zero enterprise value.

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Market Backdrop

Palihapitiya previously shuttered two $1.6 billion SPACs in 2022 after evaluating more than 100 companies without securing a merger, according to The Wall Street Journal. Rising interest rates and inflation have severely disrupted the SPAC ecosystem, forcing other sponsors, such as Pershing Square's Bill Ackman, to return capital as well.

Why It Matters for Investors

Despite investor pain, Palihapitiya's Social Capital still generated an estimated $750 million in profits from SPAC deals, according to WSJ reporting. His renewed push suggests a bet that U.S. capital markets will reward innovation in AI, energy transition, and national security.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

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