Business

Anthropic Attracts New Investors, Excludes Saudi Fund Amid Security Concerns

Mar 22, 2024 1 min read

Jump to Summary

Amid the unfolding bankruptcy proceedings of the failed cryptocurrency exchange FTX, a significant stake in the artificial intelligence startup Anthropic is up for sale. FTX, founded by Sam Bankman-Fried, had previously acquired an 8% stake in Anthropic for $500 million three years ago. Now valued at over $1 billion, thanks to a surge in AI industry valuation, these shares are expected to help repay FTX customers affected by the exchange's collapse.

Anthropic, known for its work in the AI field as a competitor to OpenAI, has specifically ruled out accepting investments from Saudi Arabian entities, citing national security concerns. While the company is open to investments from other sovereign wealth funds, including the United Arab Emirates' Mubadala, it has chosen to exclude the Saudi Public Investment Fund (PIF), despite the PIF's significant interest in AI technology as part of Saudi Crown Prince Mohammed bin Salman's Vision 2030 initiative to diversify the nation's economy.

The sale of FTX's class B shares in Anthropic, which do not confer voting rights, is ongoing at the company's last reported valuation of $18.4 billion. The transaction is anticipated to conclude within the coming weeks.

#tech #startups #ai

Summary

Other news in business

Draghi Calls for €800bn EU Investment to Compete Globally

The European Union (EU) requires a more coordinated industrial policy, rapid decision-making, and significant investment to remain competitive with the United States and China, according to a report by former European Central Bank chief and Italian Prime Minister, Mario Draghi. The report, commissioned by the European Commission, calls for an

Lilly Promotes Lucas Montarce to EVP and CFO

Eli Lilly and Company (Lilly) has appointed Lucas Montarce as its new executive vice president and chief financial officer (CFO), effective immediately. Montarce, who joined Lilly in 2001, has held various finance leadership roles, including group vice president, corporate controller, and global CFO of Lilly Research Laboratories, Lilly International, and

Methanex Acquires OCI's Methanol Business for $2.05 Billion

OCI Global has entered into a binding equity purchase agreement to sell its Global Methanol Business to Methanex Corporation for $2.05 billion. The transaction will be settled through a combination of $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at approximately $450

James Gandolfini Dared HBO Exec to Fire Him During 'Sopranos' Intervention

Former HBO CEO Chris Albrecht has disclosed that James Gandolfini once challenged him to "fire" him from "The Sopranos" after an intervention was staged to persuade the actor to enter rehab for his alcohol struggles. The revelation is part of the new documentary, "Wise Guy: