OpenAI rival startup Anthropic is attracting new investors with as much as a $1 billion stake in the company but is leaving out backers from Saudia Arabia due to national security concerns, according to people familiar with the matter. This has limited Anthropic’s list of potential investors to deep-pocketed, sovereign wealth funds.

The ownership share in Anthropic is on the market due to its association with FTX, the cryptocurrency exchange founded by Sam Bankman-Fried that went under. This move is a segment of the bankruptcy process the company is undergoing. Acquired three years ago for $500 million by FTX, the 8% interest in Anthropic has now appreciated to over $1 billion, thanks to the recent surge in AI’s popularity.

The revenue generated from the sale is earmarked for reimbursing FTX customers. Individuals familiar with the discussions, who prefer to remain anonymous due to the private nature of the negotiations, indicated that the deal is progressing and expected to conclude in the forthcoming weeks.

According to sources, the class B shares of Anthropic, which lack voting privileges, are being offered based on the company’s most recent valuation of $18.4 billion. Over the past few years, Anthropic has garnered approximately $7 billion in funding from leading technology companies, including Amazon, Alphabet, and Salesforce. Its advanced large language model serves as a competitor to OpenAI’s ChatGPT.

Dario and Daniela Amodei, the founders of Anthropic, possess the authority to scrutinize prospective investors. Nonetheless, they are currently not participating in the ongoing fundraising efforts or the negotiations concerning potential investors for FTX’s share. The Amodeis initially connected with Bankman-Fried through the principles of “effective altruism,” which advocates for earning as much money as possible with the intent of donating it all.

The founders of Anthropic have informed financial advisors of their decision to decline investments from Saudi sources. However, they are not intending to oppose contributions from other sovereign wealth funds, such as the Mubadala Investment Company from the United Arab Emirates. According to a source, the UAE-based entity is currently considering an investment in the firm.