Chamath Palihapitiya Returns with New $250M SPAC for DeFi and AI

Venture investor Chamath Palihapitiya, known for his SPAC deals (merging with a specially created public company), filed registration documents for a new Special Purpose Acquisition Company named American Exceptionalism Acquisition Corp. A. The fund aims to raise $250 million for investments in sectors that, in Palihapitiya’s view, are critical to maintaining U.S. leadership: decentralized finance (DeFi), artificial intelligence (AI), energy, and defense.

The SPAC plans to list its shares on the New York Stock Exchange (NYSE) under the ticker AEXA. The company will offer 25 million Class A shares at $10 each. The management team includes Palihapitiya as chairman, Steven Trieu as CEO, and Jeffrey Vignos as CFO. Both are known for their work at Social Capital, Palihapitiya’s primary company, where Trieu is the CFO and Vignos is a venture partner.

The registration statement details the investment strategy. Special attention is given to DeFi, where, according to the document, “the next stage of development is the increased integration between traditional finance and decentralized finance.” The filing cites Circle’s recent public listing as a clear example of how a DeFi project can successfully enter the traditional financial market.

The fund has 24 months from the IPO to find a company to merge with. If a suitable candidate is not found, the SPAC will be liquidated, and funds will be returned to investors.

Previously, Palihapitiya successfully brought several companies public through SPACs, including Virgin Galactic. However, some of his previous funds, such as Social Capital Suvretta Holdings II and III, were later liquidated and their capital was returned to shareholders. At one time, Palihapitiya called SPACs “IPOs for all,” but his subsequent failures have caused the market to question this model.

Nevertheless, given his past failures, investors will likely have to be cautious. Palihapitiya will now need to put in considerable effort to regain trust and prove that his new project will be successful. The investor himself acknowledges the risks, stating in the document that retail investors should only commit a small portion of their portfolio and be prepared to lose the capital entirely.