Anthropic is seeking new investors, but has excluded Saudi Arabia from its options.

• More than $1 billion worth of Anthropic stake is attracting the attention of sovereign wealth funds and other investors.
• Despite the kingdom's ambitions to invest in the AI industry, the AI startup has decided not to accept any funding from Saudi Arabia due to national security concerns.
• In this round, it is predicted that Amazon and Google, as anthropic stakeholders, will not increase their investments.

Sovereign wealth funds, known for their deep pockets, are eager to invest in Anthropic, a promising AI startup. However, Saudi Arabia is missing out on this opportunity.

According to sources, Anthropic executives have ruled out accepting funding from the Saudis due to national security concerns.

The stake in Anthropic, which was acquired by FTX three years ago for $500 million, is now worth more than $1 billion due to the recent surge in the value of AI.

The ongoing transaction is expected to be completed in the next couple weeks, with proceeds from the sale being used to repay FTX customers, according to sources who requested anonymity due to the confidential nature of the negotiations.

Sources said that Anthropic is selling its class B shares, which do not grant voting rights, at its last valuation of $18.4 billion. The company has raised approximately $7 billion in recent years from tech giants such as Microsoft, Google, and others. Anthropic's large language model competes with OpenAI's ChatGPT.

According to sources, Dario and Daniela Amodei, the anthropic founders of FTX, have the right to challenge any potential investors. However, they are not involved in the current fundraising process or discussions with potential investors in FTX's stake. The founders were introduced to Bankman-Fried through "effective altruism," a philosophy that involves making as much money as possible to give it all away.

While Anthropic's founders refused Saudi money from bankers, they are open to funding from other sovereign wealth funds, including Mubadala, which is actively considering investing.

According to a source, the potential buyers of FTX's shares are a syndicate of new investors for Anthropic, meaning Amazon and Alphabet would not be involved. FTX's stake is being sold through special purpose vehicles (SPVs), which allow multiple investors to pool capital. SPVs have been emailing venture firms to solicit participation, three sources said. Perella Weinberg is handling the sale on behalf of FTX.

Anthropic and Perella Weinberg declined to comment on the sale, while Mubadala and Saudi Arabia's Public Investment Fund, or PIF, did not immediately respond to a request for comment.

Saudi Arabia's sovereign wealth fund, the PIF, has over $900 billion in assets and is investing heavily in technology to reduce the country's reliance on oil revenue. The fund is currently in talks with venture firm Andreessen Horowitz to establish a $40 billion fund to invest in AI, according to two sources familiar with the matter. This news was first reported by the New York Times.

The Saudi Crown Prince's "Vision 2030 Initiative" aims to modernize the economy and strengthen global finance ties. The Public Investment Fund (PIF) has invested in companies such as , funded the LIV golf league, and spent heavily on professional soccer and tennis.

Saudi Arabia's national security concerns regarding dual-use technology, such as software or tech that can be used for both civilian and military applications, could be a cause for concern for the Committee on Foreign Investment in the United States (CFIUS). Additionally, Saudi Arabia has been warming to China.

The killing of Jamal Khashoggi in 2018, which triggered international backlash in the business community, remains a major problem for some Western partners regarding the kingdom's human rights record.

In November, FTX collapsed, leading to the conviction of Bankman-Fried on seven criminal counts. His sentencing is scheduled for next week, with prosecutors recommending a sentence of 40 to 50 years.

WATCH: Prosecutors recommend a 40-50 year prison sentence for SBF