SPAC King Palihapitiya, Lee Raise Cash for AI, Crypto Targets

The SPAC ecosystem is growing again, with two investors — including a public face of the original craze — raising funds to target AI and other risky industries.

Chamath Palihapitiya, the former Facebook executive who became a key player in the industry during the pandemic, raised $300 million for a special purpose acquisition company in an upsized deal late Thursday. Then, about 12 hours later, a blank check firm led by strategist Tom Lee announced it raised $250 million.

Friday’s opening minutes for the pair of blank check firms indicated excitement among investors, with Palihapitiya’s American Exceptionalism Acquisition Corp. ...