FTX Estate Announces Plans to Sell Two-Thirds of Its Stake in Anthropic for $884 Million
The estate of the bankrupt crypto exchange FTX has made an announcement regarding its plans to sell a significant portion of its 8% stake in the artificial intelligence (ai) startup Anthropic. The deal is estimated to be worth approximately $884 million.
ATIC Third International Investment Company to Purchase a Majority Share of FTX’s Anthropic Stake
According to a report by the Wall Street Journal, ATIC Third International Investment Company LLC, which is linked to the United Arab Emirates’ (UAE) sovereign wealth fund Mubadala, will purchase approximately $500 million of FTX’s shares in Anthropic. The transaction also includes other buyers such as Jane Street, several funds managed by Fidelity Management and Research, venture capital firm HOF Capital, and 20 other investors. The agreement was reportedly reached on March 22, 2023.
Background: FTX’s Investment in Anthropic and Its Significance
FTX’s investment in Anthropic, which amounted to $500 million back in 2021, is considered one of the estate’s most valuable assets. FTX creditors are expected to be fully compensated due to this investment. Prior to the bankruptcy filing, FTX had invested in Anthropic a year before, amidst fraud allegations that later led to the exchange’s downfall.
FTX’s Efforts to Sell Anthropic Stake for Client Compensation
Since the bankruptcy proceedings began, the estate has been attempting to sell its stake in Anthropic with the primary objective of reimbursing clients affected by FTX’s collapse in late 2022. Over the years, Anthropic has secured around $7 billion from major technology firms including Amazon and Alphabet. Meanwhile, its competitor OpenAI saw a staggering increase in market value, reaching $80 billion – tripling in less than a year.
FTX’s Recovery Efforts and New CEO Leadership
Under the new leadership of John Ray III, FTX has been actively recovering funds, high-end real estate, and cryptocurrency. The team has successfully retrieved over $7 billion to date, not including expensive gifts and real estate worth $26 million given to Bankman-Fried’s parents or the $700 million transferred to K5 Global and its founder, Michael Kives. Kives had previously invested FTX’s funds in several companies like SpaceX, some of which have significantly increased in value since.
