- ORIGINAL NEWS
Anthropic is lining up a new slate of investors, but the AI startup has ruled out Saudi Arabia
- SUMMARY
**Sovereign Wealth Funds Battle for Stake in AI Company Anthropic** Anthropic, a rapidly growing artificial intelligence startup, is selling a portion of its stake currently owned by bankrupt cryptocurrency exchange FTX.
Investors, including sovereign wealth funds, are eager to acquire a piece of the company, valued at over $1 billion.
However, Anthropic has made a surprising decision: it will not accept Saudi Arabian money due to national security concerns.
The company’s leadership believes that Saudi Arabia’s potential use of AI technology for both civilian and military purposes could pose a risk.
Existing shareholders such as Amazon and Google are not expected to increase their holdings in this round.
Instead, a syndicate of new investors will be brought in, including the United Arab Emirates’ Mubadala fund, which is actively considering investing.
FTX’s stake is being sold at Anthropic’s last valuation of $18.4 billion, with proceeds going towards repaying FTX customers.
While the sale is ongoing and expected to close soon, Anthropic’s founders retain the right to challenge any potential investors.
Saudi Arabia’s Public Investment Fund (PIF) has expressed interest in gaining a stake in Anthropic, but its ambition to get involved in the AI boom has been thwarted by the company’s national security concerns.
The PIF has been actively investing in technology to diversify Saudi Arabia’s economy away from oil.
Anthropic’s decision to reject Saudi money highlights the rising scrutiny over the potential risks of dual-use technology, particularly in the realm of AI.
The Committee on Foreign Investment in the United States (CFIUS) has the authority to block foreign investments that may pose a threat to national security.
Additionally, Saudi Arabia’s human rights record continues to be a concern for some Western partners, including the alleged killing of journalist Jamal Khashoggi in 2018.
These factors may have also influenced Anthropic’s decision to distance itself from Saudi investment.
- NEWS SENTIMENT CHECK
- Overall sentiment:
partial negative
Positive
“Deep-pocketed, sovereign wealth funds are among the investors clamoring to get a stake in Anthropic, the red-hot artificial intelligence startup that’s taking on OpenAI.”
“The PIF, Saudi Arabia’s sovereign wealth fund, has more than $900 billion in assets and has been plowing capital into technology to diversify the nation’s revenue away from oil.”
Negative
“The AI startup has ruled out taking any Saudi money over national security concerns, sources say, despite the kingdom’s ambitions to get in on the AI boom.”
“Anthropic executives cited national security, one of the sources told CNBC. “