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FTX Pauses $500 Million Stake in AI Startup Anthropic

DATE POSTED:September 14, 2024
key takeaways:
  • Bankrupt cryptocurrency exchange FTX has reportedly halted sales of its interest in Anthropic while it seeks new funds.
  • FTX-Alameda invested $500 million in Anthropic, but the troubled cryptocurrency company still has a $1.7 billion deficiency on its bank sheet.

In a surprising turn of events, cryptocurrency exchange FTX has decided to temporarily halt its planned $500 million investment in the AI startup Anthropic. This decision has raised eyebrows in the industry, as it puts a pause on what could have been a significant boost for Anthropic’s development of cutting-edge artificial intelligence technologies.

The Wall Street Journal reported on June 28 that interested investors must express their initial interest this week in helping FTX restart its worldwide exchange, citing persons familiar with the situation.

FTX pauses Anthropic sale. Wise move.

Selling losers first is crucial.

Anthropic tokenisation might also synergise well with FTX 2.0, as an exclusive listing. pic.twitter.com/WJd900JBYw

— FTX 2.0 Coalition (@AFTXcreditor) June 27, 2023

This development comes shortly after, FTX Filed a  Lawsuit Against Ex- Executive Alleging Misconduct and Hush Money Payments.

According to the source, FTX CEO John J. Ray III stated that the company “has started the process of soliciting interested parties to reboot the FTX.com exchange.”

According to insider sources, Parella Weinberg Partners, FTX’s advisory investment bank, has decided to temporarily halt the sale of FTX’s stake in Anthropic, despite several interested parties. The potential sale of this stake holds significant financial value for FTX. 

Recent allegations made by FTX’s restructuring chief, John Ray, state that approximately $8.7 billion in user funds were misappropriated, with around $7 billion already recovered.

Before the temporary pause, numerous companies had shown keen interest in acquiring the stake in Anthropic, taking advantage of the ongoing AI boom. Perella Weinberg, as reported earlier by Semafor, had plans to sell hundreds of millions of dollars’ worth of Anthropic shares on behalf of FTX.

Anthropic, founded in 2021 by former employees of OpenAI, has experienced a remarkable surge in popularity due to the current AI boom. The initial investment made by FTX in Anthropic is believed to be even greater than the reported $450 million raised in the startup’s Series C funding round held in May, which valued Anthropic at around $4.6 million.

One of FTX’s biggest holdings at the time of its bankruptcy was its interest in Anthropic. The greatest investment was $1.1 billion made in the cryptocurrency miner Genesis Digital Assets. 

In order to access financial information, interested parties must sign non-disclosure agreements, but this is a standard practice in such situations. 

Several prospective purchasers are interested in purchasing FTX’s investment in Anthropic. The sale would have produced a large amount of capital for creditor collection and reimbursement.