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Artificial intelligence startup Anthropic is launching an IPO backed by failed cryptocurrency exchange FTX. While the country’s richest funds expressed interest, Anthropic decided to exclude Saudi Arabia from its list of potential investors, citing national security concerns.
Anthropic executives cited national security as a key factor in their decision to reject Saudi investment, according to sources familiar with the matter. As part of FTX’s bankruptcy process, the company’s shares currently owned by FTX will be sold. FTX bought the shares three years ago for $500 million, and thanks to recent growth in the intellectual property market, the shares are now worth over $1 billion.
The sale aims to generate revenue to cover the expenses of FTX customers and the negotiations are expected to be concluded next week. The shares were classified as non-voting Class B shares, giving Anthropic an ultimate value of $18.4 billion. Anthropic has received major investments of approximately $7 billion in recent years from business giants such as Amazon, Alphabet and Salesforce.
Anthropic founders Dario and Daniela Amodei have the right to challenge investors, but they are not involved in the current fundraising process. As Saudi investments are cut, developers are not expected to compete with funding from other influential funds, including the United Arab Emirates’ Mubadala Fund, which is reportedly seeking to layer capital.
The sale of FTX shares included new investors in Anthropic, which used a special purpose vehicle (SPV) to allow more investors to participate. Investment banker Perella Weinberg is overseeing the sale process on behalf of FTX.
Anthropic’s decision to exclude Saudi Arabia from potential investors follows the company’s concerns about dual-use technology and its potential impact on national security. This move reflects the strict scrutiny of foreign investments, especially in technology-related fields.
Saudi Arabia’s isolation also reflects broader regional considerations, including the country’s human rights record and improving relations with partners around the world. While Anthropic gets its share of sales, its efforts to select entrepreneurs also show the interaction between technology, national security and international relations in today’s business world.