FTX real estate sells most of Anthropic to UAE for $884M

FTX, a crypto exchange in bankruptcy, has agreed to sell most of its shares in the AI startup Anthropic for $884 million to a consortium of buyers, as revealed in a filing submitted to a Delaware court on Friday. The document, dated March 22, shows a variety of buyers participating, with the primary buyer being ATIC Third International Investment Co., affiliated with Mubadala, a sovereign wealth fund in the UAE, acquiring nearly $500 million worth of Anthropic shares.

Several sovereign wealth funds were said to be vying for a share of FTX’s Anthropic stake. According to CNBC sources on Friday, Saudi Arabia was explicitly excluded due to national security apprehensions. The kingdom has been investing billions of dollars in technology funds in an effort to attract talent from the UAE and lessen its dependence on oil through diversification.

The second-largest purchaser involved in the Anthropic transaction is Jane Street, the quantitative trading firm where FTX founder Sam Bankman-Fried previously worked before branching out on his own. Caroline Ellison, former CEO of FTX’s sister hedge fund Alameda Research, also had a prior stint at Jane Street. The firm is in the process of acquiring shares valued at close to $100 million.

Craig Falls, the head of quantitative research at Jane Street, has additionally expressed interest in personally acquiring approximately $20 million worth of shares.

Among the nearly two dozen buyers are venture fund HOF Capital, the Ford Foundation, and funds managed by Fidelity Management.

However, these sales are pending finalization and require approval from Judge John Dorsey, who presides over FTX’s bankruptcy case in Delaware. If approved, the sale would collectively represent nearly two-thirds of FTX’s shares in Anthropic.

November saw Bankman-Fried convicted of seven criminal counts linked to FTX’s collapse.

Under Bankman-Fried’s guidance, FTX injected $500 million into Anthropic, established by former OpenAI staff in 2021, predating the surge in generative AI. By December 2023, the company’s worth soared to $18 billion, translating FTX’s approximately 8% share to around $1.4 billion.

Asset Recovery of FTX and Efforts in Market Developments

Amidst efforts to sell shares in Anthropic to compensate clients affected by FTX’s collapse, the bankruptcy estate has been active for months. Anthropic, having secured $7 billion from tech giants like Amazon and Alphabet, stands as a significant player. Concurrently, OpenAI’s valuation skyrocketed to $80 billion in less than a year, contrasting with FTX’s pursuit of asset recovery under new CEO John Ray III. The company has already reclaimed over $7 billion, excluding notable items like gifts and properties to Bankman-Fried’s parents and substantial investments in companies such as SpaceX by K5 Global and founder Michael Kives, some of which have experienced significant growth in value.

Last month, attorneys representing the bankruptcy estate informed a Delaware judge of their anticipation to fully reimburse customers and creditors with valid claims. Andrew Dietderich, a bankruptcy attorney collaborating with FTX’s new leadership, emphasized the ongoing challenges and uncertainties in recovering all funds owed to clients but expressed confidence in the team’s devised strategy. Despite prior negotiations with potential bidders for a company reboot, FTX abandoned those efforts in January.