Anthropic Blocks Saudi Arabia from Purchasing 8% Stake in AI Firm
AI firm Anthropic has prevented Saudi Arabia from participating in the sale process of 8% of its shares — currently held by defunct crypto exchange FTX, as reported by CNBC on March 22, based on sources.
As part of its bankruptcy proceedings to repay creditors who suffered losses, FTX is selling the stake. Investment bank Perella Weinberg is managing the sale, which has attracted interest from multiple sovereign wealth funds.
The sale is anticipated to be finalized in the upcoming weeks.
National Security Concerns
Despite aggressive investment diversification efforts, Saudi Arabia has been blocked from investing in Anthropic due to national security risks.
Reportedly, Anthropic founders Dario and Daniela Amodei, with ties to FTX founder Sam Bankman-Fried, have instructed bankers not to sell the stake to Saudi Arabia. Geopolitical complexities and national security considerations, including Saudi Arabia’s relations with China and human rights concerns, influenced Anthropic’s decision.
AI’s dual-use nature, with applications in both civilian and military sectors, may have contributed to the cautious approach towards selling shares to Saudi Arabia. However, other countries like the UAE’s Mubadala are still in contention.
The US government has also expressed worries about AI’s sensitive nature in relation to national security.
Stake Valued at Over $1 Billion
Originally bought by FTX for $500 million in 2021, the stake’s value has doubled amidst the AI sector’s rapid growth, now exceeding $1 billion.
Priced based on Anthropic’s $18.4 billion valuation, the sale of class B shares without voting rights amounts to over $1 billion as of March.
Proceeds from the sale will help compensate investors affected by FTX’s collapse, addressing concerns raised during the court’s approval of the sale. Estimates indicate FTX owes customers approximately $8.7 billion as of mid-2023.
