Technology
Saturday, March 23rd, 2024 1:23 am EDT
Key Points
- Deep-pocketed sovereign wealth funds seek stakes in Anthropic, an AI startup rivaling OpenAI, with notable exception of Saudi Arabia.
- Anthropic, amid FTX’s bankruptcy proceedings, refuses Saudi investment citing national security, while aiming to repay FTX customers with proceeds from the sale of an 8% stake worth over $1 billion.
- Anthropic founders, Dario and Daniela Amodei, assert right to challenge investors but won’t oppose funding from other sovereign wealth funds like UAE’s Mubadala, while FTX’s stake is being sold through special purpose vehicles, managed by Perella Weinberg.
Anthropic, a prominent artificial intelligence startup challenging OpenAI, is attracting interest from deep-pocketed investors, including sovereign wealth funds, except Saudi Arabia. The company, undergoing bankruptcy proceedings, is selling an 8% stake previously held by FTX, the failed cryptocurrency exchange. While the sale aims to repay FTX customers, Anthropic executives have ruled out Saudi investment citing national security concerns. The stake, valued at over $1 billion, is being sold at Anthropic’s last valuation of $18.4 billion, with founders Dario and Daniela Amodei having the right to challenge potential investors. Despite rejecting Saudi funds, Anthropic remains open to investments from other sovereign wealth funds like Mubadala. The sale, managed by investment bank Perella Weinberg, involves a syndicate of new investors, excluding tech giants Amazon and Alphabet. Saudi Arabia’s sovereign wealth fund, PIF, has been exploring AI investments, potentially partnering with venture firm Andreessen Horowitz for a $40 billion fund, aligning with Crown Prince Mohammed bin Salman’s Vision 2030 Initiative to diversify the economy. However, Saudi Arabia’s human rights record and geopolitical factors, such as its warming relations with China and notable human rights violations, have raised concerns among potential investors. Additionally, FTX’s founder, Sam Bankman-Fried, faces legal repercussions following the collapse of FTX, with a potential sentencing of 40 to 50 years.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/22/anthropic-lining-up-a-new-slate-of-investors-ruled-out-saudi-arabia.html
