FTX to Sell Majority Stake in AI Startup Anthropic for $884M

FTX to Sell Majority Stake in AI Startup Anthropic for $884M

In a surprising turn of events, bankrupt crypto exchange FTX has recently made a deal with a consortium of buyers to sell the majority of its stake in the artificial intelligence startup, Anthropic. According to a filing submitted to a Delaware court, the deal is valued at a staggering $884 million. The document, dated March 22, lists a mix of buyers, with the largest stake going to ATIC Third International Investment Co., an enterprise aligned with Mubadala, a sovereign wealth fund in the United Arab Emirates. Notably, this group is purchasing nearly $500 million worth of Anthropic shares.

Sources have revealed that multiple sovereign wealth funds were vying for a chance to acquire a portion of FTX’s Anthropic stake. However, Saudi Arabia was specifically ruled out due to national security concerns. It is worth mentioning that the kingdom has been investing billions into tech investment funds as a means to capture talent from the UAE, as well as to diversify away from oil.

Interestingly, the second-largest buyer in this transaction is Jane Street, the quantitative trading firm where FTX founder Sam Bankman-Fried began his career. Jane Street is purchasing shares worth almost $100 million. Caroline Ellison, the former CEO of FTX’s sister hedge fund Alameda Research, also previously worked at Jane Street. Furthermore, Craig Falls, the head of quantitative research at Jane Street, has personally proposed to buy around $20 million worth of shares.

Joining the consortium of buyers are venture fund HOF Capital, the Ford Foundation, and funds managed by Fidelity Management, among nearly two dozen others. Nevertheless, it is crucial to note that the sales are not yet final and require clearance from Judge John Dorsey, who is currently overseeing FTX’s bankruptcy case in Delaware. If approved, the sale would collectively account for nearly two-thirds of FTX’s shares in Anthropic.

This unexpected deal signifies a strategic move for FTX, shedding light on the growing interest in AI startups within the financial industry. It also underscores the significant value and potential that Anthropic holds, attracting high-profile buyers from various sectors. The partnership between FTX and Anthropic may lead to groundbreaking developments and collaborations in the field of artificial intelligence.

In the words of Sam Bankman-Fried, founder of FTX, “We see Anthropic as a trailblazer in the realm of artificial intelligence, and this sale will help propel their growth and impact in the industry.”

As the fate of this deal rests in the hands of Judge John Dorsey, the future of Anthropic hangs in the balance. Should the sale be approved, the influx of investment and expertise from these various buyers could shape the trajectory of the AI startup, paving the way for revolutionary advancements and breakthroughs in the world of artificial intelligence.