FTX Estate to Unload AI Investment for Billions

Will the FTX Estate Cash Out on AI Bet?

Wall Street heavyweights, including Jane Street and Fidelity, are shelling out millions to acquire most of FTX's stake in the AI startup Anthropic. The deal, valued at $884 million for a two-thirds share, implies an equity valuation for Anthropic of over $1 billion.

Who's the Biggest Buyer?

ATIC Third International Investment Co., backed by UAE sovereign wealth fund Mubadala, is the primary investor, scooping up shares worth close to $500 million.

Jane Street Resurfaces

Jane Street, the former employer of both Sam Bankman-Fried and Alameda Research's Caroline Ellison, is investing nearly $100 million. The firm's head of quantitative research, Craig Falls, is also acquiring $20 million worth of shares.

Fidelity Joins the Fray

Funds managed by Fidelity Investments are collectively adding $44 million to their Anthropic stake. Venture firm HOF Capital and the Ford Foundation also have a slice of the action.

FTX's Equity Play Pays Off

In 2021, Bankman-Fried's FTX bought an 8% stake in Anthropic for $500 million. Now, the implied valuation suggests a nearly threefold return, with the bankruptcy estate potentially realizing a 1.8x gain on its sale.

FTT Surges on Anthropic Optimism

FTX's native token, FTT, jumped 15% following the Antrhropic deal announcement, indicating investor confidence in the bankruptcy estate's asset management.

Anthropic's Value in Question

In October, the U.S. Department of Justice (DOJ) argued that the value of Anthropic shares should not be considered in Bankman-Fried's trial as they were purchased with FTX customer funds. However, the defense maintains that FTX has never faced losses and that the funds have always been available.

Legal Maneuvering Over Anthropic

The DOJ's proposed 50-year sentence for Bankman-Fried included the view that the Anthropic investment was irrelevant to the trial. But the defense's letter to the court last week suggested that the government's argument is misleading.

FTX Estate's Recovery Hopes

The proceeds from the Anthropic sale are earmarked for creditor restitution, offering a lifeline to those who lost money in FTX's collapse. The deal underscores the estate's ongoing efforts to recover assets and compensate its former clients.