Will Anthropic AI's Claude Outshine OpenAI's ChatGPT and Save FTX Investors?
Abraham George Crypto Musings
At last, there appears to be a glimmering sliver of hope for investors in FTX to recover their money. This may surprise many, but allow me to set the stage. By now, most readers have likely heard of OpenAI's ChatGPT, or even experimented with its usage. The introduction and launch of ChatGPT will undoubtedly be remembered as a landmark moment in the history of AI. Although ChatGPT is a pioneer in this space, there will be many more versions and types of AI that will create and aid in generative AI. Whether we like it or not, these technologies will routinely become part of our lives and work.
What most people have not yet heard about is another company, Anthropic AI, which is developing a product to counter ChatGPT called Claude. With no real product to show, let alone revenues or profits in its first year of existence, they have already raised a staggering $580 million dollars. However, this hasn't stopped Google from injecting $300 million into the company at a $3 billion valuation. It may appear to be a desperate move from Google to counter Microsoft, which gave the impression that they would be the premier generative AI company.
Claude claims to have lofty standards and virtues; they are a Constitutional AI. What does that mean? It means that they are an AI that will rise above human honesty, helpfulness, and harmlessness. In simpler terms, it means that they don't rely on humans to decide what is right or wrong, which sounds outright scary.
Google's investment in Claude is not solely for profit from AI. Anthropic AI has been closely tied to the Effective Altruism movement (EA), a movement that aims to maximize goodness for the world. Wasn't this the message Sam Bankman-Fried was preaching to the world? Their thinking is so revolutionary that they are not only thinking of a better world for those alive, but even making sacrifices for the benefit of securing the lives of those who are still not born.
In its first round of funding, SBF invested $500 million out of the $580 million, and Caroline Ellison, the CEO of Alameda Research, also participated in the first round with $50 million. Alameda was the trading firm owned by SBF, closely tied to FTX. Those investments have gone up more than six times, at the very least, and it looks likely that it is much more than that.
The bankruptcy courts may try to claw back these investments, as we now know they were made with stolen funds. It is a fact that SBF and Caroline Ellison used client funds, which is, of course, illegal.
So, what could be the future of Anthropic? Can it become a $50 billion company in the next two years? It is not at all unrealistic to think that way. OpenAI is already a $30 billion company on the back of ChatGPT. In the next two years, it wouldn't be surprising if it raised capital at a $50 to $60 billion valuation.
Presuming the courts could sell off the portion of SBF and Ellison's Anthropic shares, the proceeds could potentially cover the entire cost of the FTX bankruptcy and return all stolen funds to FTX creditors. Should this happen, it will be such a happy ending to such a terrible fiasco, and it will be remembered as one of the best financial crimes in history.
My point is that this technology has even greater power to fix such a mammoth mess that SBF and FTX created in the crypto industry.
If you received value from this post, and you’d like to send some back, or if you’d like to signal to me to continue spending time on these types of explorations, feel free to buy me coffees (thank you!):
So, there we go. Thanks for reading Breezy Briefings. If you enjoyed this, I'd really appreciate it if you could take a second and tell a friend. Honestly. It makes such a big difference.
Forward this email. Recommend the newsletter. Share on Twitter, WhatsApp, Telegram, LinkedIn, Slack, wherever!
Join Breezy Briefings’ Official Telegram Channel: https://t.me/BreezyBriefings
Abraham George is a seasoned investment manager with more than 40 years of experience in trading & investment and multi-billion dollar portfolio management spanning diverse environments like banks (HSBC, ADCB), sovereign wealth fund (ADIA), a royal family office, and a hedge fund.