SPAC King Chamath Warns Retail Investors to Avoid $345M American Exceptionalism SPAC

Chamath Palihapitiya, known as the "SPAC King," has launched a new SPAC called American Exceptionalism Acquisition Corp (NYSE:AEXA), aiming to take companies in AI, clean energy, or U.S. defense public, raising $345 million due to strong institutional demand. However, Palihapitiya strongly advises retail investors to avoid investing, noting that 98.7% of shares were allocated to large institutions handpicked by him, with only about 1.3% available to retail investors. He emphasizes that SPACs are not suitable for most retail investors because they require the ability to withstand volatility and have capital to support long-term investment. Palihapitiya plans to minimize public discussion about the SPAC going forward and urges retail investors who ignore his advice to carefully review disclosures before deciding. This warning is notable given Palihapitiya's key role in the SPAC boom from 2019 to 2021, during which he popularized the structure but acknowledges that SPACs rarely create sustained value for retail investors. The SPAC also has no warrants, and founder shares are only earned if the stock price rises by at least 50% after a business combination, underscoring the risk involved.