Google’s anthropomorphic investment gives hope for a full recovery of FTX

Hedge fund manager Travis Kling believes that Google's recent $2 billion investment commitment in artificial intelligence (AI) will help push FTX losses toward a full recovery.

On October 27, reports surfaced that tech giant Google had pledged a $2 billion investment in Anthropics. It includes a $500 million investment with plans to deliver the remaining $1.5 billion over time.

FTX is close to full recovery

In a post on X (formerly Twitter), Travis Kling, founder of Ikigai Asset Management, suggested that Google's investment in the AI ​​company could help fully recover from FTX's losses. he said:

“FTX losses are approaching full recovery at this point. It will take years to pay off, but property assets and customer deposits now check at 1:1.”

However, Blocktower Capital founder Ari Paul countered that Google's investment doesn't mean Anthroponic will get cash back. Paul said.

“Anthroponic may or may not return cash, but it would be the same mistake as thinking that FTX is solvent because of its SRM and FTT holdings. Imo, half of the recovery paper marks are a giant question mark, not even real ‘review rounds'.

Last year, FTX and its affiliate Alameda Research made a whopping $500 million investment in Anthropoc.

Since then, the AI ​​company has made impressive strides by creating Claude2, a competing chatbot to OpenAI's ChatGPT, and received nearly $7 billion in funding last year.

As a result, Anthropic's valuation is set to reach more than $20 billion, up from $4.1 billion recorded earlier this year. The increased valuation could put FTX's stake in the company at more than $4 billion.

SBF accepts errors

Meanwhile, FTX's former CEO Sam Bankman-Fried (SBF) has admitted wrongdoing during the exchange's ongoing criminal trial in New York.

The SBF admitted that “a lot of people were hurt” after FTX declared bankruptcy last year. The former CEO pointed out that one of his jobs in an insolvent firm was failing to appoint a risk manager.

Additionally, SBF blamed former partners Caroline Ellison, Gary Wang and Nishad Singh for their roles in the exchange's troubles.

He argued that Ellison did not follow Alameda's instructions regarding FTX's concerns. On the other hand, Wang and Singh had the power to make independent decisions even though they were under his control.