In a significant development in the world of artificial intelligence and cryptocurrency, the bankrupt crypto exchange FTX has reached an agreement to sell the majority of its shares in the AI startup Anthropic for a staggering $884 million. The sale, which involves 24 institutional investors, marks a major step forward in FTX's efforts to repay its customers who lost funds when the exchange collapsed in November 2022.
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Anthropic, founded in 2021 by former employees of OpenAI, the company behind the wildly popular ChatGPT, has been at the forefront of the AI revolution. The startup's mission to create AI models with stricter guardrails than its competitors has garnered significant attention from investors and tech giants alike. The company's valuation skyrocketed to $18 billion in December 2023, fueled by the soaring popularity of generative AI and substantial investments from Amazon and Alphabet.
FTX, under the leadership of its former CEO Sam Bankman-Fried, invested $500 million in Anthropic in 2021, securing an 8% stake in the promising startup. Little did they know that this investment would prove to be a lifeline for the now-defunct exchange. The subsequent AI boom has more than doubled the value of FTX's stake, which now stands at around $1.4 billion.
Among the 24 institutional investors participating in the purchase, ATIC Third International Investment Company, a unit associated with Abu Dhabi's sovereign wealth fund Mubadala, has emerged as the top buyer. ATIC has agreed to acquire 16,664,167 shares of Anthropic from FTX for a substantial $500 million. Other notable buyers include Jane Street Global Trading, an affiliate of Sam Bankman-Fried's former employer, certain funds managed by Fidelity Investments, and venture capital firm HOF Capital.
The sale of the Anthropic shares represents a significant victory for the FTX estate, which pledged in January to pay back the defunct exchange's customers 100% of the value of their holdings. The proceeds from this sale, along with the estate's existing cash pile valued at around $6.4 billion last month, have put FTX in a strong position to fulfill its promise to its creditors.
The successful sale of FTX's stake in Anthropic highlights the growing intersection between artificial intelligence and cryptocurrency. As AI continues to revolutionize industries and create new economic value, it is expected to have a profound impact on the way businesses operate, make decisions, and interact with customers. The cryptocurrency world, too, stands to benefit from the advancements in AI, with the potential for more efficient and secure transactions, as well as the development of new, innovative products and services.
The sale of FTX's majority stake in Anthropic for $884 million marks a significant milestone in the ongoing saga of the bankrupt crypto exchange. The proceeds from this sale will go a long way in helping FTX repay its customers and creditors, while also highlighting the immense potential of the AI industry. As the world continues to witness the rapid growth and development of both AI and cryptocurrency, it is clear that these two sectors will play an increasingly important role in shaping the future of technology and finance.
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