Anthropic, the rising artificial intelligence startup, has garnered significant interest from high-net-worth investors, including sovereign wealth funds. However, the company has taken a firm stance against accepting investments from Saudi Arabia due to national security concerns. While exploring new backers to acquire the stake previously held by FTX, Anthropic’s executives have made it clear that they will not engage with Saudi investors, as reported by sources familiar with the matter.
The opportunity to purchase a stake in Anthropic emerged as a result of FTX’s bankruptcy proceedings, with the cryptocurrency exchange having acquired the shares three years ago for $500 million. Today, the 8% stake is valued at over $1 billion following the surge in AI market growth. The proceeds from selling this stake will be utilized to settle FTX’s outstanding obligations to its customers. The transaction is currently in progress and is expected to conclude within the next few weeks, as disclosed by insiders requesting anonymity.
Anthropic has secured substantial funding amounting to approximately $7 billion from major tech players such as Amazon, Alphabet, and Salesforce. The company’s breakthrough language model has positioned it in direct competition with OpenAI’s ChatGPT. Anthropic’s founders, Dario and Daniela Amodei, retain the right to vet potential investors, but are not actively involved in the ongoing fundraising process or discussions regarding FTX’s stake. Their introduction to Sam Bankman-Fried was rooted in the concept of “effective altruism,” emphasizing the purpose of maximizing wealth to contribute to social causes. While the startup has made it clear that Saudi investments are off the table, other sovereign wealth funds like Mubadala from the UAE show interest in backing Anthropic.
Perella Weinberg, the investment bank overseeing the sale of FTX’s stake, has been reaching out to venture capital firms through special purpose vehicles (SPV). This approach enables multiple investors to collectively pool resources towards investing in Anthropic. The syndicate of new investors looking to acquire FTX’s shares does not include current shareholders like Amazon and Alphabet. Parties involved in the sale, including Anthropic and Perella Weinberg, have abstained from commenting on the transaction.
Anthropic’s decision to refrain from accepting Saudi investments could be attributed to potential national security implications associated with dual-use technology. This refers to technologies that have applications in both civilian and military domains, a matter of interest to the Committee on Foreign Investment in the United States (CFIUS). Saudi Arabia’s strategy to diversify its economy and strengthen global ties through technology investments, such as AI, has attracted attention, including discussions with venture firm Andreessen Horowitz to establish a significant fund.
Saudi Arabia’s efforts to enhance its international image amidst concerns regarding human rights violations have posed challenges for potential investors and business partners. The infamous case of journalist Jamal Khashoggi’s alleged murder in 2018 underscored the kingdom’s controversial reputation and triggered widespread condemnation. As Saudi Arabia explores partnerships with China and other countries, some Western entities, including Anthropic, remain cautious about engaging with the nation due to various political, ethical, and security considerations.
The unfolding dynamics surrounding Anthropic’s investor relationships and strategic positioning underscore the complexities of navigating global business landscapes. As the startup charts a course for growth and innovation, the decisions it makes in choosing its financial backers and partners will shape its future trajectory. Meanwhile, the legal woes facing Sam Bankman-Fried, the founder of FTX, add another layer of uncertainty to the situation, casting a shadow over the ongoing proceedings and potential implications for all involved parties.
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