Deep-pocketed sovereign wealth funds and other investors are eagerly vying for a stake in Anthropic, the cutting-edge artificial intelligence (AI) startup that is positioned to challenge industry leaders like OpenAI. However, one notable absence from the list of potential investors is Saudi Arabia. Sources have revealed that Anthropic has ruled out accepting investment from the Saudis due to concerns about national security.
Anthropic’s stake is currently for sale as part of the bankruptcy proceedings of FTX, the failed cryptocurrency exchange founded by Sam Bankman-Fried. Three years ago, FTX acquired the shares for $500 million, and their value has now exceeded $1 billion due to the recent surge in the AI market. The proceeds from the sale will be used to repay FTX customers. The transaction is expected to conclude within the next few weeks, according to individuals familiar with the negotiations.
The class B shares, which do not include voting rights, are being offered for sale at Anthropic’s last valuation of $18.4 billion. The startup has managed to raise approximately $7 billion in funding from major tech players such as Amazon, Alphabet, and Salesforce over the past few years. Its advanced language model competes directly with OpenAI’s ChatGPT.
While Anthropic’s founders, Dario and Daniela Amodei, have made it clear that they will not accept Saudi investment, they do not plan to challenge funding from other sovereign wealth funds, including the United Arab Emirates fund Mubadala. In fact, Mubadala is actively considering investment opportunities in Anthropic, according to insiders.
The potential buyers for FTX’s stake consist of a syndicate of new investors, excluding Amazon and Alphabet. Some of FTX’s shares are being marketed through special purpose vehicles (SPVs), which allow multiple investors to pool their capital. Venture firms have been approached via email by these SPVs, seeking their participation in the investment. Investment bank Perella Weinberg is overseeing the sale on behalf of FTX.
Representatives from Anthropic, Perella Weinberg, Mubadala, and Saudi Arabia’s Public Investment Fund (PIF) declined to comment on the ongoing sale. Known for its ambitious “Vision 2030 Initiative,” aimed at modernizing the economy and strengthening global finance ties, the PIF is currently discussing the creation of a $40 billion fund in collaboration with venture firm Andreessen Horowitz to invest in AI technology, as reported by The New York Times.
Concerns related to Saudi Arabia’s human rights record, as well as the country’s potential utilization of dual-use technologies (technologies with both civilian and military applications), may have influenced Anthropic’s decision to exclude the Kingdom from its list of potential investors. The Committee on Foreign Investment in the United States (CFIUS), which has authority over foreign investments in certain areas, pays particular attention to dual-use technologies. Furthermore, Saudi Arabia’s growing relationship with China is also worth noting.
The nation’s questionable human rights record, such as the alleged killing of journalist Jamal Khashoggi in 2018, has posed challenges for its relationships with Western partners and generated international backlash within the business community.
In unrelated news, Sam Bankman-Fried, the founder of FTX, has recently been convicted of seven criminal counts associated with the collapse of the company. Prosecutors are recommending a prison sentence of 40 to 50 years, with his sentencing scheduled for the upcoming week.
FAQ
Q: What is Anthropic?
A: Anthropic is a high-impact artificial intelligence startup that specializes in advanced language models, competing with industry leaders like OpenAI’s ChatGPT.
Q: Why has Anthropic ruled out accepting Saudi investment?
A: Anthropic has cited national security concerns as the reason for not considering investment from Saudi Arabia. These concerns may be related to potential dual-use technologies and Saudi Arabia’s human rights record.
Q: How much is Anthropic’s stake worth?
A: Anthropic’s stake, currently being sold as part of FTX’s bankruptcy proceedings, is valued at over $1 billion. It was acquired by FTX three years ago for $500 million.
Q: Who are Anthropic’s current stakeholders?
A: Anthropic’s existing stakeholders include major tech companies like Amazon, Alphabet, and Salesforce. These stakeholders are not expected to increase their holdings in this round.
Q: Which sovereign wealth fund is considering investing in Anthropic?
A: United Arab Emirates-based fund Mubadala is actively considering investing in Anthropic, despite Saudi Arabia being ruled out as an investor.
Sources:
– [Perella Weinberg](https://perellaweinberg.com)
Deep-pocketed sovereign wealth funds and investors are eager to secure a stake in Anthropic, the cutting-edge AI startup that poses a challenge to industry leaders like OpenAI. However, Saudi Arabia is notably absent from the list of potential investors due to concerns about national security. Anthropic’s stake is currently for sale as part of the bankruptcy proceedings of failed cryptocurrency exchange FTX. FTX acquired the shares three years ago for $500 million, and their value has now exceeded $1 billion due to the recent surge in the AI market. The funds raised from the sale will be used to repay FTX customers. The transaction is expected to conclude within the next few weeks.
Anthropic is offering class B shares, which do not include voting rights, for sale at its last valuation of $18.4 billion. The startup has successfully raised around $7 billion in funding from major tech players like Amazon, Alphabet, and Salesforce in recent years. Its advanced language model, which competes directly with OpenAI’s ChatGPT, has gained significant recognition and interest.
While the founders of Anthropic, Dario and Daniela Amodei, have made it clear that they will not accept Saudi investment due to national security concerns, they are open to funding from other sovereign wealth funds such as the United Arab Emirates fund Mubadala. Sources suggest that Mubadala is actively considering investment opportunities in Anthropic.
FTX’s stake in Anthropic is attracting potential buyers through a syndicate of new investors, excluding Amazon and Alphabet. Special purpose vehicles (SPVs) are being used to market some of FTX’s shares, allowing multiple investors to pool their capital. Venture firms have been approached via email by these SPVs, seeking their participation in the investment. Perella Weinberg, an investment bank, is overseeing the sale on behalf of FTX.
Representatives from Anthropic, Perella Weinberg, Mubadala, and Saudi Arabia’s Public Investment Fund (PIF) have declined to comment on the ongoing sale. The PIF, known for its ambitious “Vision 2030 Initiative” aimed at modernizing the economy and strengthening global finance ties, is reportedly discussing the creation of a $40 billion fund with venture firm Andreessen Horowitz to invest in AI technology.
Anthropic’s decision to exclude Saudi investment may be influenced by concerns related to the country’s human rights record and the potential utilization of dual-use technologies. The Committee on Foreign Investment in the United States (CFIUS), which oversees foreign investments in certain areas, pays particular attention to dual-use technologies. It is also worth noting Saudi Arabia’s growing relationship with China.
The nation’s questionable human rights record, including the alleged killing of journalist Jamal Khashoggi in 2018, has posed challenges for its relationships with Western partners and generated international backlash within the business community.
In unrelated news, Sam Bankman-Fried, the founder of FTX, has recently been convicted of seven criminal counts associated with the collapse of the company. Prosecutors are recommending a prison sentence of 40 to 50 years, with his sentencing scheduled for the upcoming week.
FAQ
Q: What is Anthropic?
A: Anthropic is a high-impact artificial intelligence startup that specializes in advanced language models, competing with industry leaders like OpenAI’s ChatGPT.
Q: Why has Anthropic ruled out accepting Saudi investment?
A: Anthropic has cited national security concerns as the reason for not considering investment from Saudi Arabia. These concerns may be related to potential dual-use technologies and Saudi Arabia’s human rights record.
Q: How much is Anthropic’s stake worth?
A: Anthropic’s stake, currently being sold as part of FTX’s bankruptcy proceedings, is valued at over $1 billion. It was acquired by FTX three years ago for $500 million.
Q: Who are Anthropic’s current stakeholders?
A: Anthropic’s existing stakeholders include major tech companies like Amazon, Alphabet, and Salesforce. These stakeholders are not expected to increase their holdings in this round.
Q: Which sovereign wealth fund is considering investing in Anthropic?
A: United Arab Emirates-based fund Mubadala is actively considering investing in Anthropic, despite Saudi Arabia being ruled out as an investor.
Sources:
– Perella Weinberg
The source of the article is from the blog japan-pc.jp