FTX is seeking emergency court approval to sell its $1.4 billion stake in Anthropic.
Bankrupt cryptocurrency exchange FTX is seeking Justice Department approval to sell its roughly 8% stake in AI company Anthropic as it continues attempts to repay creditors.
On February 3, FTX filed a motion with the U.S. Bankruptcy Court for the District of Delaware to approve the sale of the bankrupt exchange’s 8% stake in Anthropic.
The company also filed a second motion to shorten the deliberation period for the first motion, emphasizing the urgency of the matter and hoping to get a hearing by February 22.
Anthropic is a Delaware public interest corporation working on large-scale language models similar to GPT-3. A December 2023 valuation of $18 billion means an 8% stake in FTX could be worth more than $1.4 billion in the current market.
The AI company received a significant investment of $500 million from FTX, but at the time, FTX retained the leadership of founder Sam Bankman-Fried. The disgraced former CEO is currently awaiting sentencing after being found guilty in November 2023 on several criminal charges, including wire fraud and money laundering.
The proposed sale is not considered a simple liquidation of assets, but rather a nuanced, court-approved transaction aimed at maximizing value returned to FTX stakeholders. If granted permission, this would be a pivotal step in implementing sales procedures that advocate a transparent and competitive bidding environment.
FTX is considering a variety of sales methods, including auctions and private negotiations, while keeping the exact asking price a secret. This structured approach seeks to ensure a fair and opportunistic process and preserve the company’s shareholder value in the volatile AI market.
Observers have noted the impact of timing, as AI technology remains a hotbed for investment and interest and valuations in the field are surging. The company listed February 15 as the deadline to file objections to the request.