The insolvent crypto exchange FTX plans to divest a substantial chunk of its stake in the artificial intelligence firm Anthropic for $884 million. This move aims to repay its creditors and enhance its financial well-being.
The transaction will include investors such as ATIC Third International Investment Company LLC, Jane Street, Fidelity Management and Research, and HOF Capital.
FTX made a $500 million investment in Anthropic in 2021, however Anthropic went bankrupt because of accusations of fraud.
The startup has achieved substantial success in the field of artificial intelligence, securing investments from Amazon and Google’s Alphabet Inc., which have elevated its valuation to $6 billion.
The 8% stake that FTX still has in Anthropic is a valuable asset, especially considering that the estate’s financial reserves were reported at $6.4 billion last month.
US bankruptcy Judge John Dorsey granted approval for the transaction in February, despite early resistance from creditors. The agreement is contingent upon the provision that the funds from the sale would be allocated exclusively towards repaying the creditors.
The ownership of Anthropic after the transaction is still undetermined. FTX’s decision to sell off the majority of its Anthropic shares is a calculated move as part of its strategy to return from bankruptcy.
Last week, the US Department of Justice (DOJ) has recommended a jail sentence of 40-50 years for Sam Bankman-Fried, the former director of FTX.
James Wilson is a crypto writer and researcher with over 5 years of experience in the industry. He is a graduate of the University of California, Berkeley, where he studied computer science and economics. After graduating, he worked as a software engineer at a major tech company before transitioning to a career in crypto.
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