Ex-Google CEO Eric Schmidt Faces 700 Million Dollar Dispute Over Anthropic Stake

Former Google CEO Eric Schmidt is facing a high-stakes legal dispute with his ex-partner, Michelle Ritter, over an alleged promised stake in artificial intelligence giant Anthropic. Ahead of what is expected to be one of Wall Street's largest public offerings, Ritter claims she was promised 5 percent of Schmidt's holdings in Anthropic in exchange for helping secure the early-stage investment. Based on the company's targeted valuation in the upcoming IPO, that claimed share could be worth approximately 700 million dollars.

Schmidt, 71, has been married to Wendy Schmidt for decades, though reports have long indicated the couple maintains an open marriage. In 2020, Schmidt met Ritter, now 32, and the two embarked on both a romantic and professional relationship. They subsequently established the investment incubator Steel Perlot, into which Schmidt reportedly poured around 100 million dollars. However, the relationship ended in 2024, devolving into a highly publicized legal battle.

According to media investigations, newly revealed text messages from late 2020 and early 2021 demonstrate that Ritter was actively involved in early discussions with Anthropic's founders before the company evolved into a global AI powerhouse. In December 2020, Schmidt proposed forming a temporary entity with a 1 million dollar budget to finance the operations of the seven co-founders, and Ritter was tasked with helping facilitate the deal. Ritter subsequently corresponded directly with Daniela Amodei, one of the co-founders, regarding capital raising, equity distribution, and company valuation. Her brother, Dario Amodei, now CEO of Anthropic, was also involved in the talks. Sources indicate Schmidt repeatedly assured Ritter she would receive her share of the investment, but she was reportedly left empty-handed following their breakup.

Despite the documented communication showing Ritter's involvement in the negotiations, the explicit promise of a 5 percent stake does not appear in the text messages, nor is it detailed in the reviewed legal documents. A former employee of the investment incubator testified that Ritter spearheaded the investment opportunity, though this testimony does not definitively prove she was promised an equity share. This is not the only legal conflict between the two; in a separate arbitration addressing other claims brought by Ritter against Schmidt, a ruling was issued against her, ordering her to pay him roughly 12 million dollars, which was confirmed by a California court last September. However, that proceeding did not resolve the question of whether she is entitled to a portion of the Anthropic investment.

Anthropic, the developer of the Claude chatbot, is planning a massive public offering on Nasdaq, seeking a fully diluted valuation of roughly 1.4 trillion dollars, with shares offered in the range of 70 to 78 dollars. Estimates suggest Schmidt holds approximately 1 percent of Anthropic's stock. If that holding remains accurate and the IPO valuation is realized, 5 percent of his stake could indeed be worth 700 million dollars on paper. At this stage, however, Ritter has not legally proven her entitlement to the sum, and Schmidt's representatives have declined to comment on the specific allegation.