• North Carolina's state pension fund will not participate in SpaceX's IPO, calling its ~$1.75-$1.8 trillion valuation too high.
  • The fund plans to gain SpaceX exposure via index funds post-listing, while continuing AI investments in OpenAI (OPEN) and Anthropic (ANTH).
  • Treasurer Brad Briner emphasizes stable returns for retirees over chasing outsized gains in a single, highly priced stock.

Pension Fund Opts Out of SpaceX IPO

North Carolina Treasurer Brad Briner said the state pension fund will not buy shares in SpaceX's highly anticipated initial public offering, citing the company's valuation of roughly $1.75 trillion to $1.8 trillion as too expensive. "Our focus is on achieving stable, high-single-digit returns for retirees, not on chasing the hottest IPO at peak pricing," Briner said in an interview. He added that the fund's priority is predictable retirement outcomes, and that stretched valuations in large tech IPOs pose unnecessary risk.

Alternative AI Bets Preferred

Instead of buying into SpaceX at its current valuation, the pension fund is doubling down on artificial intelligence bets through investments in OpenAI and Anthropic. Briner said these AI firms offer more attractive entry valuations and align with the fund's long-term growth strategy. "AI represents a transformative opportunity, and we believe we can get in at more reasonable prices compared to what SpaceX is demanding," he noted. The fund's exposure to SpaceX will come later, through index funds after the company lists publicly, allowing for a more diversified entry point.

Broader Institutional Hesitation

Briner's stance reflects a growing caution among large institutional investors toward mega-IPOs with lofty valuations. Many pension funds favor disciplined pricing and later-entry strategies, particularly when a single stock commands a market cap rivaling entire sectors. The North Carolina fund's decision underscores a shift toward risk management and diversified exposure, even as SpaceX's IPO is expected to be one of the largest in history. Briner also reiterated the fund's commitment to its existing tech holdings, including AI-related names, as a counterbalance to the volatility of a single mega-cap bet.

Correction: A previous version of this article stated the fund would buy SpaceX shares post-IPO; it plans to use index funds instead.