FTX Sells Shares in AI Startup Anthropic for $880 Million

FTX, the financially troubled company formerly led by Sam Bankman-Fried, has finalized a deal to sell a majority of its shares in Anthropic, an artificial intelligence (AI) startup, for a staggering $880 million, according to a report by AFP.

FTX Sells Shares to Anthropic for $880 Million

Anthropic emerged as one of the valuable assets amidst the collapse of the FTX empire in late 2022, following revelations of widespread fraudulent activities involving Bankman-Fried and his inner circle.

Bankman-Fried was convicted in November 2023 on multiple charges related to financial misconduct and is awaiting sentencing, with prosecutors seeking a lengthy prison term of 40 to 50 years.

The bulk of the shares in Anthropic will be acquired by ATIC Third International Investment Company, an affiliate of the Mubadala sovereign wealth fund based in the United Arab Emirates, as disclosed in the court filing.

ATIC will pay $500 million for its stake in Anthropic, while the remaining shares will be purchased by around 20 other investors, including Bankman-Fried's former employer, Jane Street Global Trading.

This transaction represents a significant windfall for FTX, which initially invested $500 million in Anthropic in 2021 during its heyday as a major player in the cryptocurrency sector.

Anthropic, founded in the same year, was established by former employees of OpenAI, the organization responsible for creating ChatGPT. The company gained recognition for its development of AI models, notably the chatbot Claude, and its commitment to implementing rigorous ethical standards in AI research.

The bankruptcy proceedings of FTX have been convoluted and contentious, with court-appointed CEO John J. Ray III entrusted with the task of recovering assets for creditors. Despite the company's financial woes, FTX has expressed its intention to fully reimburse its customers and reported holding $6.4 billion in cash reserves as of late February, as reported by the Wall Street Journal.

FTX's Current CEO Has Something to Say

In a separate development recently reported by Tech Times, a letter addressed to Judge Lewis Kaplan from FTX's current CEO, John Ray III, aimed to provide clarity regarding the circumstances surrounding the company's downfall and Sam Bankman-Fried's culpability, amidst his plea for a reduced prison sentence.

Ray asserted that Bankman-Fried had misled the court about his departure from FTX and downplayed the extent of the damage he caused to customers and investors.

Describing Bankman-Fried's appeal for leniency as "callous" and "demonstrably false," Ray criticized his supposed lack of remorse and highlighted the adverse impact of his actions on FTX's operations and stakeholders.

Upon assuming leadership of FTX, Ray disclosed that the company had only 105 Bitcoins remaining on the exchange, despite customers being entitled to 100,000 Bitcoins.

He also alleged that Bankman-Fried had misappropriated substantial sums of money, which remained unaccounted for despite recovery efforts.

"Mr. Bankman-Fried continues to live a life of delusion. The "business" he left on November 11, 2022, was neither solvent nor safe," said Ray III. "Vast sums of money were stolen by Mr. Bankman-Fried, and he was rightly convicted by a jury of his peers."