Anthropic rejects Saudi investment on national security grounds

Anthropic

Artificial intelligence startup Anthropic, a rival to OpenAI, is attracting new investors looking to buy a stake in the company. However, management has ruled out the possibility of funding from Saudi Arabia due to national security concerns.

Here's What We Know

Anthropic executives have informed bankers organising a syndicate of potential new backers that they will not accept a cash investment from the Saudi side, a source told CNBC. The reason was concerns about dual-use technology that could be used for both civilian and military purposes.

The stake in Anthropic is up for sale as part of the bankruptcy proceedings of cryptocurrency exchange FTX, which previously acquired an 8 per cent stake in the startup. At Anthropic's current valuation of $18.4bn, the stake is worth more than $1bn.

While Anthropic founders Dario and Daniela Amodei have the right to challenge investors, they are not involved in the fundraising and sale of the FTX stake. However, they have no objection to funding from other sovereign wealth funds, including the UAE's Mubadala fund.

Investment bank Perella Weinberg is handling the sale of FTX shares on behalf of the bankrupt exchange. Part of the stake is being realised through special purpose entities, which allow the pooling of capital from multiple investors. The deal should close in the next couple of weeks.

Source: CNBC