FTX to Sell Major Stake in AI Firm Anthropic for $884 Million
FTX plans $884M stake sale in AI startup Anthropic to repay creditors
FTX, the bankrupt crypto exchange, is gearing up to sell a substantial portion of its investment in the AI company Anthropic, cashing in $884 million. This decision aims to pay back creditors and improve FTX's financial health, as detailed in a Bloomberg report.
The sale will see parts of FTX's stake bought by a range of investors, including the UAE's ATIC Third International Investment Company LLC, Jane Street, Fidelity Management and Research, and HOF Capital.
FTX's investment backstory involves pouring $500 million into Anthropic in 2021 before its bankruptcy saga unfolded due to fraud allegations. Anthropic has since gained traction in the AI world, receiving hefty investments from Amazon and Google's Alphabet Inc., which pushed its value to a whopping $6 billion.
FTX's remaining 8% share in Anthropic is a key asset, with the estate's cash reserves reported at about $6.4 billion last month.
The company's leaders are confident about settling all debts with creditors, heavily banking on the proceeds from this sale. Approval for the sale came from US bankruptcy Judge John Dorsey in February, despite initial pushback from creditors concerned about the source of funds for the original investment.
The agreement hinges on the condition that sale proceeds will be dedicated to creditor repayment.
Post-sale ownership of Anthropic is still up in the air. FTX's move to unload most of its Anthropic shares for $884 million is a strategic step in its bankruptcy recovery plan, aimed at clearing debts and solidifying its finances.
The interest surge in AI startups significantly benefited FTX's initial investment. The exchange's token, FTT, is showing signs of recovery, currently trading at $2.22, marking a 9% increase in the past 24 hours and a notable 74% growth since the start of the year.
