Deep-pocketed investors are vying for a stake in Anthropic, a thriving artificial intelligence startup that is challenging the likes of OpenAI. However, one notable country that is being excluded from this opportunity is Saudi Arabia. According to sources familiar with the matter, Anthropic has made the decision to not accept funding from Saudi investors due to national security concerns.
The stake in Anthropic is up for sale as it belongs to FTX, a cryptocurrency exchange that is currently in bankruptcy proceedings. The company had originally purchased the shares for $500 million, but they are now valued at over $1 billion thanks to the surge in AI technology. The proceeds from the sale will be used to repay FTX customers.
Anthropic has raised a significant amount of funding in recent years, with tech giants like Amazon, Alphabet, and Salesforce backing the company. The founders, Dario and Daniela Amodei, have the right to veto potential investors, although they are not directly involved in the current fundraising efforts.
While Anthropic has decided to steer clear of Saudi funding, they are open to investments from other sovereign wealth funds, such as the United Arab Emirates’ Mubadala. The potential buyers of FTX’s shares include a syndicate of new investors, with the sale being facilitated through special purpose vehicles.
The decision to exclude Saudi funding may stem from concerns over dual-use technology, which can have both civilian and military applications. This move aligns with broader national security considerations, particularly in relation to the Committee on Foreign Investment in the United States (CFIUS).
On a larger scale, Saudi Arabia’s Public Investment Fund (PIF) has been actively diversifying its investments into technology, including a potential $40 billion AI fund in partnership with venture firm Andreessen Horowitz. The kingdom’s Vision 2030 Initiative aims to modernize its economy and forge stronger ties in the global financial landscape.
In my opinion, Anthropic’s stance on refusing Saudi investment underscores the complex interplay between business, politics, and national security in today’s tech landscape. It reflects a growing awareness of the implications of foreign investments in sensitive industries, particularly those with potential dual-use applications. As AI continues to evolve and shape various sectors, it’s crucial for companies to carefully consider the sources of their funding and the broader geopolitical implications of their business decisions. Ultimately, this case highlights the importance of responsible investing and the need for transparency and due diligence in navigating the global marketplace.