FTX, a defunct cryptocurrency exchange, is reportedly planning to sell its stake in artificial intelligence firm Anthropic for approximately $1 billion as part of its bankruptcy debt repayment strategy, according to a CNBC report on March 22.
Anthropic is currently considering a range of potential investors to purchase the stake, and a deal is expected to be finalized within the next few weeks, according to the article’s anonymous sources familiar with the matter.
To facilitate the sale, FTX is using a special purpose vehicle (SPV), which is a separate legal entity created to ensure that a parent company can meet its legal obligations in the event of insolvency.
The CNBC report also suggests that Saudi Arabia has been excluded from participating in the deal due to alleged national security concerns. However, it is unclear whether this restriction applies only to state investors or if individual or corporate investors from Saudi Arabia, as well as citizens operating companies in foreign territories, will also be barred. It is worth noting that the shares being sold are “Class B” non-voting shares.
In February, Delaware Bankruptcy Court Judge John Dorsey ruled that FTX could sell its shares in Anthropic. FTX initially purchased around $530 million worth of Anthropic shares in April 2022. However, the value of these shares has nearly doubled since then, thanks to the growing popularity of generative AI technology, and is currently estimated to be around $1 billion.
This news comes just days before the scheduled sentencing hearing of FTX CEO Sam Bankman-Fried on March 28. Bankman-Fried was convicted on seven counts of fraud in November 2023.
U.S. Attorney Damian Williams described Bankman-Fried’s crimes as one of the largest financial frauds in U.S. history, constituting “a multibillion-dollar scheme designed to make him the king of crypto.”