North Carolina Treasurer Passes on SpaceX IPO, Citing High Valuation; Favors AI Investments
North Carolina State Treasurer Brad Briner announced the state's $200 billion pension fund will not invest directly in SpaceX's upcoming IPO, citing concerns that the company's $1.77 trillion valuation leaves insufficient room for returns. The state has instead invested heavily in AI companies OpenAI and Anthropic, which Briner believes offer better risk-reward opportunities. The decision reflects broader institutional investor debate over whether SpaceX's valuation already reflects its growth potential.
North Carolina State Treasurer Brad Briner stated that the state's pension fund, which manages approximately $200 billion for teachers, firefighters, and police officers, will not directly purchase SpaceX shares in its upcoming IPO due to valuation concerns. SpaceX is scheduled to price its IPO on Thursday at $135 per share, raising about $75 billion and valuing the company at roughly $1.8 trillion. Briner emphasized that the fund targets high single-digit predictable returns for retirees and cannot justify the current valuation. Instead, North Carolina has invested approximately $40 million in OpenAI and committed roughly $250 million to Anthropic, positions now valued at over $600 million. Briner noted the state will gain SpaceX exposure through passive index fund holdings but maintains no direct private market stake. His comments highlight a growing divide among institutional investors regarding whether SpaceX's dominant market positions in rocket launches and satellite internet are already fully reflected in its current valuation.
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North Carolina Treasurer passes on SpaceX citing valuation concerns; favors OpenAI, Anthropic
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