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Anthropic is lining up a new slate of investors, but the AI startup has ruled out Saudi Arabia

Mar 23, 2024 - news.bensbites.co
Anthropic, an AI startup, has ruled out Saudi Arabia as a potential investor due to national security concerns. The company is currently selling an 8% stake, worth over $1 billion, which was previously owned by the failed cryptocurrency exchange, FTX. The sale is part of FTX's bankruptcy proceedings and the proceeds will be used to repay its customers. Despite rejecting Saudi investment, Anthropic is open to funding from other sovereign wealth funds, including the UAE's Mubadala.

The shares are being sold at Anthropic's last valuation of $18.4 billion and the potential buyers are a new syndicate of investors. The company's founders, Dario and Daniela Amodei, have the right to challenge any potential investors but are not involved in the current fundraising process. The sale is being handled by investment bank Perella Weinberg and is expected to conclude in the coming weeks.

Key takeaways:

  • Anthropic, an AI startup, has ruled out Saudi Arabia as a potential investor, citing national security concerns.
  • The stake in Anthropic is for sale due to the bankruptcy of FTX, a failed cryptocurrency exchange that bought the shares three years ago for $500 million.
  • The potential buyers of FTX's shares comprise a new syndicate of investors for Anthropic, with Amazon and Alphabet not involved in the purchase.
  • Saudi Arabia's Public Investment Fund, which has more than $900 billion in assets, is in talks with venture firm Andreessen Horowitz to create a $40 billion fund to invest in AI.
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