Anthropic Declines Saudi Investment Amidst FTX Share Sale

AI startup Anthropic, in the throes of FTX’s bankruptcy proceedings, is selling 8% of its shares but has explicitly excluded Saudi Arabian investors from this transaction, citing national security concerns. The decision, as per CNBC reports, aligns with the hesitance to involve Saudi capital, reflecting broader geopolitical sensitivities.

Sam Bankman-Fried’s initial investment in Anthropic, valued at $500 million three years ago, has seen its worth double due to the burgeoning interest in AI technology. The current stake sale, aimed at reimbursing FTX customers, is pegged based on Anthropic’s latest $18.4 billion valuation.

While Anthropic has garnered significant funds from tech giants and competes closely with OpenAI’s ChatGPT, the Amodei siblings, founders of Anthropic, maintain a strategic distance from the sale process. Their connection with Bankman-Fried, rooted in the principle of effective altruism, underscores a complex interplay of financial and philanthropic interests.

Conversely, the United Arab Emirates’ Mubadala is reportedly contemplating an investment in Anthropic, indicating selective openness to sovereign wealth funds. The sale, organized through special purpose vehicles, seeks to attract a diverse investor cohort, excluding previous backers like Amazon and Alphabet.

Parallel to these developments, Saudi Arabia’s active engagement in technology investments through its sovereign wealth fund, part of the broader “Vision 2030 Initiative,” suggests a strategic pivot towards diversifying its economy. The fund’s potential collaboration with Andreessen Horowitz for an AI-focused investment underscores this ambition.

The exclusion of Saudi investment in Anthropic’s stake sale might mirror wider apprehensions about dual-use technologies and their implications for national security, a concern highlighted by the Committee on Foreign Investment in the United States (CFIUS).