If Google invests money into this and then this company uses Google cloud to compute, then does the money really outflow of Google much? Everything stays in the family, but in theory they can have an investment that works.

Also listing Sam Bankman-Fried does not help much, especially for a company hyping itself to be 10x better than a working competitor. I mean, since they built the competitor, probably their second project can be better, but it is a pie in the sky in many ways.

Would lawsuits targeting SBF and CE put those investments at risk via clawbacks. Kind of like how many Madoffs investors who made money were forced to return that.

I don’t think it’s much like what you describe because the direction is reversed. They say they expect the debtors to sell that investment over the next few years. Potentially they will sell it at a profit.

IANAL but it's not: they could be compelled to return whatever was invested (or however much of it remains). It's pretty unlikely given that it looks like a successful Anthropic investment is perhaps FTX creditors' best chance at decent recovery.

thats less than they invested in Magic Leap :)