Per Semafor, FTX appears to have made a $500 million dollar investment into Anthropic, an OpenAI rival that made waves back in January when its model was reported to have passed a blindly-graded George Mason University law and economics exam with flying colors (a claim, it’s worth noting, that was made weeks before the OpenAI-built GPT-4’s test-taking prowess was publicly known.)
And FTX isn’t the only high-profile Anthropic investor. Seemingly in a move to level the playing field in its battle with the financially tethered Microsoft and OpenAI, a little company known as Google, among other investors, invested $300 million into the AI firm back in February.
As a result of those cash infusions, in addition to the buzz around the AI market, Anthropic’s stock has been headed way up. As it stands, the AI firm is reportedly valued at a staggering $4.6 billion – and per Semafor, FTX’s major stake in the high-dollar firm could ultimately provide bankruptcy trustees with a way to pay FTX’s slighted customers back.
Uncertainty
But that said, as Semafor points out, it might not be that simple.
When more traditional companies, which tend to have more traditional-slash-real assets — real estate, bonds, and more of the like — go bankrupt, there’s a fairly standardized, precedented rulebook for bankruptcy proceedings. Those proceedings often include some kind of “prepackaged” bankruptcy strategy designed to eke as much worth out of an asset’s value as possible while also attempting to make customers whole.
FTX, alternatively, as an unregulated business within an unregulated industry, reportedly didn’t have any such plan, and its assets are generally pretty far from traditional. And to that end, it’s also worth noting that the AI industry is still at the beginning of a gold rush. Anthropic has a stronger footing in the market than most, but whether it can stick it out with a multi-billion dollar valuation in the long run remains to be seen.
Still, FTX customers haven’t had good news in a while — and maybe, just this one time, a Bankman-Fried financial decision could actually pay off for them. Or at the very least, pay them back.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
