<pNorth Carolina State Treasurer Brad Briner has ruled out investing in SpaceX's stock, citing concerns over the company's valuation.
The treasurer, responsible for overseeing nearly **$200 billion** in assets for the state’s pension fund, has opted against a direct stake in the Elon Musk-led space exploration company. This decision comes as the state has heavily invested in AI startups OpenAI and Anthropic, with the treasurer citing valuation concerns for the reason behind passing on SpaceX.
The decision to avoid SpaceX’s stock is likely linked to the company’s **$375 billion valuation**, which has sparked concerns among investors. Briner emphasized that the pension fund’s primary goal is to secure long-term returns for its beneficiaries, including North Carolina teachers and firefighters.
OpenAI and Anthropic, on the other hand, have demonstrated impressive traction in the rapidly advancing AI landscape. OpenAI, the creator of the popular ChatGPT language model, has secured major investments from tech giants like Microsoft and Google. Anthropic, a fellow AI research firm, has gained recognition for its cutting-edge research and development in the field.
Treasury’s AI Strategy
The North Carolina State Treasurer’s decision highlights the state’s strategic focus on AI investments. By backing OpenAI and Anthropic, the treasurer aims to capitalize on the enormous potential of AI technologies. This move reflects a broader trend of institutional investors prioritizing stakes in AI startups, reflecting the sector’s immense growth potential.
What this means
The North Carolina State Treasurer’s decision serves as a cautionary note for investors considering a stake in SpaceX. The high valuation of the company may deter some investors from taking a risk. Conversely, the state’s investment in OpenAI and Anthropic underscores the strategic importance of AI in the tech landscape. As the tech sector continues to evolve, investors will need to reassess their strategies to stay competitive.
