0
0
Anthropic Blocks Saudi Arabia from Buying FTX Shares
On March 22, it was reported that AI firm Anthropic has prevented Saudi Arabia from participating in the sale of 8% of its shares, which are currently held by the bankrupt crypto exchange FTX. The sale is being managed by investment bank Perella Weinberg and has attracted interest from various sovereign wealth funds. The transaction is expected to be finalized in the near future.
National Security Concerns
Despite Saudi Arabia’s efforts to diversify its investments as part of the “Vision 2030 Initiative,” Anthropic has chosen to exclude the country from acquiring its shares. The founders of Anthropic, Dario and Daniela Amodei, who have connections to FTX’s former CEO, Sam Bankman-Fried, through the effective altruism community, have played a role in this decision. Concerns about national security and geopolitical complexities, including Saudi Arabia’s relationships with China and its human rights record, have influenced Anthropic’s stance. AI is considered a technology with dual-risk capabilities, prompting caution in selecting potential investors.
Although Saudi Arabia has been excluded from the sale process, other countries like the UAE’s Mubadala are still in contention. Recent discussions surrounding AI and national security have also caught the attention of the US government, with the Committee on Foreign Investment in the United States (CFIUS) potentially intervening to safeguard national interests.
Increased Stake Value
The shares, originally purchased by FTX for $500 million in 2021, have surged in value amidst the rapid growth of the AI sector. Their current valuation exceeds $1 billion. Class B shares, which lack voting rights, are priced based on Anthropic’s latest valuation of $18.4 billion. The sale of FTX’s stake is part of its bankruptcy proceedings, with the proceeds intended to compensate creditors who suffered losses following FTX’s collapse. Estimates indicate that FTX owes customers approximately $8.7 billion.
Image/Photo credit: source url
