Eric Schmidt’s Anthropic Stake Could Boost Net Worth by $10 Billion

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Eric Schmidt, the former Google chief executive and prominent Democrat donor, holds a one percent stake in Anthropic, which could potentially add up to $10 billion to his net worth if the AI startup goes public. Bloomberg reports that Schmidt first invested in Anthropic in 2021 when the company was valued at $461 million. The exact value of his stake remains unclear, as he has not sold any portion of it since then.

A Valuation That Could Change Everything

Investors recently signaled a fair valuation for Anthropic between $1.8 trillion and $2 trillion, with the high end of this range valuing the company over 4,300 times its Series A valuation. Using the $2 trillion figure, Schmidt’s stake would boost his net worth by about one-third, reaching nearly $80 billion. Even at the company’s most recent valuation of $965 billion, his stake would still add nearly $10 billion to his current fortune of $57.5 billion.

Anthropic’s Co-Founders and the Road to IPO

Anthropic’s seven co-founders are each worth $8 billion based on the company’s last funding round, enough to land them on the Bloomberg Billionaires Index. The company is expected to begin its IPO marketing campaign in the week of November 9, with trading likely to start before Thanksgiving. The IPO is anticipated to be one of the largest in history, potentially surpassing SpaceX’s $1.77 trillion IPO.

The AI Doomer Movement and Its Implications

Anthropic and CEO Dario Amodei have been at the forefront of the AI doomer movement, calling for a slowdown in AI development. Amodei’s essay outlines a three-step plan to temper AI progress without halting it outright. Anthropic claims to have already taken the first step by allowing third-party evaluators access to its safety practices, a move Amodei says does not compromise the company’s commercial advantage or U.S. leadership in AI.

Eric Schmidt’s Portfolio and Past Successes

Schmidt has made his investments through several vehicles, including TomorrowVentures, Innovation Endeavors, and his family office, Hillspire. His early portfolio leaned toward consumer internet, software, and fintech companies, but he has increasingly focused on artificial intelligence. Notably, his investment in Uber through Innovation Endeavors grew 1,400-fold, reaching $82 billion by the time of Uber’s 2019 IPO.

The Broader Implications of Anthropic’s IPO

If Anthropic goes public at a $2 trillion valuation, Schmidt’s return on the AI company would surpass his gains from Uber. The IPO is expected to create many new leftist billionaires and millionaires associated with the Effective Altruism movement, further solidifying Anthropic’s influence in the AI landscape.

Source: Breitbart

Written by

Ryan Wilson