Saudi IT group MIS fully divests $9m stake in Anthropic
MIS attributes move to capital reallocation to target new opportunities
#SaudiArabia #investment - Saudi Arabia-listed Al Moammar Information Systems Co. (MIS) has fully divested its investment in US-based artificial intelligence firm Anthropic PBC for $9.33 million, generating $4.26 million in profit. The Tadawul-listed IT group confirmed the complete exit from its Anthropic stake, which will be reflected in second-quarter 2025 financial results. MIS originally invested $5 million in Anthropic as part of the AI company's Series D funding round in January 2024, after it allocated SAR 40 million ($10.7m) to build a self-funded portfolio focused on global AI firms. MIS said that the disinvestment supports the its strategy to reallocate capital for new investment opportunities.
SO WHAT? - Gulf investors are becoming more active in AI investments, with private and corporate investors, venture capital funds and sovereign wealth funds capitalising on the growth in Generative AI. The MIS investment nicely highlights the opportunity, with its $5 million Anthropic stake achieving an 84% return on investment within about 18 months. Earlier this year the company sold its entire investment in OpenAI for $8.4 million, making $3.4 million on its original investment, for a 40% return.
Some further details about Gulf investment in GenAI:
According to a stock exchange filing, Saudi Arabia-listed Al Moammar Information Systems Co. (MIS) has fully divested its investment in US AI firm Anthropic PBC for $9.33 million, generating $4.26 million in profit. The impact will be recorded in Q2 2025 results
The Tadawul-listed IT company originally invested $5 million in Anthropic's Series D funding round in January 2024, and so has achieved a 84% return on investment within about 18 months
MIS allocated SAR 40 million in January 2024 to build a self-funded portfolio targeting global AI firms, demonstrating strategic commitment to artificial intelligence sector exposure
The Saudi company also invested $5 million in OpenAI Inc. via private stock sale round of employee shares, advised by Decisive Capital Management when OpenAI valued at $86 billion. MIS sold the stake for $8.4 million earlier this year, for a $3.4 million return on investment.
MIS confirmed the Anthropic divestment supports its capital reallocation toward new investment opportunities.
OpenAI has attracted significant Gulf sovereign wealth fund interest, with UAE tech investment fund MGX participating in the company's $6.6 billion venture capital round in October, alongside Microsoft and NVIDIA
OpenAI CEO Sam Altman has visited the Gulf region multiple times to pitch investments so sovereign wealth funds. OpenAI finalised a $40 billion funding round in April, which led to a $300 billion valuation.
[Written and edited with the assistance of AI]