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This AI Project Might Have Just Saved FTX Investors

Published 2023-10-04, 08:16 a/m
© Reuters.  This AI Project Might Have Just Saved FTX Investors
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U.Today - , a cryptocurrency exchange known for its aggressive growth and diverse investment portfolio, may have hit a goldmine with its investment in Anthropic, a leading AI start-up and a formidable rival to OpenAI. Anthropic is currently in discussions to secure at least $2 billion in new , following a significant $1.25 billion investment commitment from Amazon (NASDAQ:AMZN) last week.

Anthropic has developed Claude, a chatbot that competes directly with OpenAI's ChatGPT. The company is aiming for a staggering valuation between $20 billion and $30 billion, including the new investment. This is a monumental leap from its $4 billion valuation as of March this year. If successful, Anthropic's shares would be far more valuable than those of OpenAI, based on valuation multiples on .

For FTX investors, this could be a windfall. The cryptocurrency exchange had been diversifying its investments to include high-potential tech start-ups back when it was functional, and Anthropic seems to fit the bill perfectly. The start-up has not only shown promise in the AI sector but has also attracted investments from top-tier firms, significantly boosting its valuation.

As goes through the bankruptcy process, the appreciating valuation of Anthropic could serve as a financial cushion. Investments in high-value, high-growth companies like Anthropic now offers more returns to FTX investors during a bankruptcy process, thereby mitigating financial risks.

This strategic move by FTX to invest in Anthropic could be seen as a masterstroke, especially at a time when the crypto market is rife with volatility and uncertainty, by aligning itself with a rapidly growing AI start-up that has the potential to disrupt or even lead the AI industry.

This article was originally published on U.Today

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