Anthropic Excludes Saudi Arabia from Investment Process in Sale of Stake
AI startup Anthropic has made the decision to exclude Saudi Arabia from the investment process as it sells 8% of its shares. This move comes as part of FTX’s bankruptcy proceedings. The executives at Anthropic have cited security concerns as the reason for ruling out Saudi Arabian involvement. Bankman-Fried, who acquired the stake three years ago for $500 million, is now looking to sell it for over $1 billion due to the recent surge of interest in AI technologies. The proceeds from the stake sale will be used to repay FTX customers, and the transaction is expected to conclude within the next few weeks.
Why Saudi Arabia is Being Excluded
The decision to exclude Saudi Arabia from the investment process stems from security concerns expressed by Anthropic executives. The company believes that Saudi Arabian involvement may pose risks related to national security and dual-use technology, which refers to software or tech that can have both civilian and military applications. These concerns align with the focus of the Committee on Foreign Investment in the United States (CFIUS), which has the authority to block foreign investments from specific sources in certain sectors.
UAE Considering Investment in Anthropic
While Anthropic has ruled out Saudi Arabian investments, it remains open to funding from other sovereign wealth funds. One potential investor being considered is Mubadala, a sovereign wealth fund based in the United Arab Emirates (UAE). Mubadala is actively considering an investment in Anthropic, according to sources.
Potential Buyers and Marketing Strategy
The potential buyers for FTX’s shares consist of a syndicate of new investors for Anthropic. However, Amazon and Alphabet are excluded from this list. The sale of FTX’s stake is being marketed through special purpose vehicles (SPVs), which allow multiple investors to pool their capital. Venture firms have received emails from SPVs soliciting participation in the sale. The investment bank Perella Weinberg is managing the sale on behalf of FTX.
Saudi Arabia’s Tech Investments
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has been actively investing in technology as part of its efforts to diversify the nation’s revenue sources away from oil. PIF is reportedly in discussions with venture firm Andreessen Horowitz to create a $40 billion fund dedicated to AI investments. The fund aims to support Crown Prince Mohammed bin Salman’s “Vision 2030 Initiative,” which seeks to modernize the economy and strengthen global financial ties.
Hot Take: Anthropic Prioritizes Security Over Saudi Investment
Anthropic’s decision to exclude Saudi Arabia from its investment process demonstrates its commitment to prioritizing security concerns. While Saudi Arabia has been actively investing in technology and forging closer ties with other countries, Anthropic believes that the potential risks associated with Saudi Arabian involvement outweigh the benefits. As the sale of FTX’s stake in Anthropic proceeds, it will be interesting to see how this decision impacts the overall investment landscape and future partnerships in the AI industry.
Sources: CNBC, Crypto News, Crypto News, Crypto News
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