FTX gains court approval to sell stake in AI startup Anthropic

A U.S. court has greenlit the sale of FTX’s investment in Anthropic, a growing artificial intelligence startup. This decision marks a crucial step in FTX’s ongoing efforts to liquidate assets and repay creditors following its 2022 bankruptcy.

Court approval fuels hope for creditors

Under Judge John Dorsey, the U.S. Bankruptcy Court of Wilmington, Delaware, approved the sale on Thursday, following a compromise with a group of FTX customers who had initially opposed the move. FTX’s investment in Anthropic, amounting to $500 million in 2021, represents approximately a 7.8% stake in the company. This stake has significantly appreciated, especially in light of recent investments by tech giants Amazon and Google, who have pledged up to $6 billion in the AI firm.

Anthropic, which has been at the forefront of AI and large language model advancements, caught the eye of Amazon and Google with their respective $4 billion and $2 billion investments last year. FTX’s decision to sell its shares comes when the AI sector is experiencing a surge in interest and investment, potentially maximizing returns for the beleaguered exchange’s creditors.

A strategy to maximize asset value

The approval to proceed with the sale allows FTX to time the divestiture for optimal returns strategically. With Anthropic’s valuation potentially soaring to $18.4 billion in light of its ongoing fundraising efforts, FTX’s stake could contribute over $1 billion to its bankruptcy estate. This influx is part of a broader asset liquidation strategy by FTX, under the management of John J. Ray III, which includes the sale of other key holdings and settlements to recover value for creditors.

FTX’s legal representation highlighted a cash reserve of $6.4 billion, an increase from the initial $5 billion located earlier in the bankruptcy process. This reserve is bolstered by the recent dismissal of a lawsuit to reclaim $323.5 million from the original owners of FTX’s European unit, alongside agreements for asset buybacks and other asset sales, including Digital Custody and LedgerX.