Anthropic's valuation skyrockets to $150 billion, becoming a new giant in the AI industry
According to reports from the Financial Times, AI company Anthropic is engaged in multi-round billion-dollar financing negotiations, aiming for a target valuation as high as $150 billion, a substantial jump from the previous $61.5 billion valuation. The company is seeking to raise between $3 billion and $5 billion from Middle Eastern investors, including Abu Dhabi's MGX and other investment institutions focused on advanced technologies.
This funding will significantly enhance Anthropic's capability to scale operations and compete with other major players in the AI industry. If the financing is successful, it will become one of the largest AI investment deals to date. Anthropic's rapid rise has also prompted a re-examination of its early investors, particularly the investment decisions made by the now-defunct cryptocurrency exchange FTX.
The company's skyrocketing valuation reflects the explosive growth of the AI industry and the strong demand from investors for companies equipped with advanced language model technology. The Claude AI system developed by Anthropic is seen as a major competitor to OpenAI's ChatGPT, gaining significant attention in the enterprise application market.
SBF's $500 million investment from back then is now worth a staggering $12 billion.
FTX founder Sam Bankman-Fried (SBF) invested $500 million in Anthropic in 2021 when the company's valuation was only $2.5 billion, thus acquiring an 8% stake. This investment was seen as a forward-looking strategic move at the time, demonstrating SBF's keen insight into the development potential of AI technology.
However, with FTX collapsing in November 2022 and entering bankruptcy proceedings, the company was forced to sell this 8% stake for $1.4 billion when Anthropic's valuation reached $18 billion. Although this yielded a nearly 3x return compared to the initial investment, this decision led FTX to miss out on significant potential gains compared to the current valuation.
Based on Anthropic's current target valuation of $150 billion, the 8% stake held by SBF is now worth approximately $12 billion, nearly 10 times higher than the $1.4 billion actually recovered by FTX. This astonishing gap highlights the massive losses inflicted on creditors and stakeholders due to FTX's bankruptcy and reflects the explosive growth of the AI industry in just a few years.
FTX creditor repayments are ongoing, with some regional users excluded, causing controversy.
FTX has begun the creditor repayment process, with the latest round distributing nearly $5 billion on May 30. The repayment program started in February of this year, prioritizing small creditors with approved claim amounts below $50,000, including accrued interest since the exchange's collapse in November 2022.
FTX will begin the next phase of repayment operations on September 30, covering Class 5 customer equity claims, Class 6 general unsecured claims, as well as recently approved convenience claims. These repayments are part of the broader recovery strategy in the exchange's restructuring plan, aimed at compensating affected users as much as possible.
However, not all creditors will receive payments. The FTX property management has excluded creditors from 49 'restricted jurisdictions', including China. This decision has sparked strong backlash from affected users who believe this exclusion is unfair and could set a concerning precedent for future international bankruptcy cases. Excluded users question the rationale behind this regional discrimination and are concerned that it may affect the handling standards of international financial disputes.
Further Reading
FTX has started repaying! The first batch of repayments has been distributed, and users with claims over $50,000 are expected to be compensated by the end of May.
FTX continues to repay! The second batch of repayments will begin on May 30, distributing over $5 billion.
FTX halts payments to 49 countries! The reason is local illegality? Why has China become the largest victim?
FTX compensation update: Reducing claims reserves by $1.9 billion, with new payments expected in September.
'Sold because of FTX bankruptcy! Anthropic's valuation soars to $100 billion, and SBF misses out on $10 billion profit.' This article was first published in 'Crypto City'.
