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The Flaw at the Heart of Anthropic’s I.P.O.
Anthropic is preparing for an initial public offering at a target valuation of up to $1.4 trillion. Economist Natasha Sarin argues that its prospectus sets out serious risks from its AI technology, including potential threats to humanity, and questions whether the company’s governance can manage them adequately.
Anthropic is a public benefit corporation, with its seven co-founders holding a collective 50.1 per cent stake. A Long-Term Benefit Trust, which currently has four trustees and one vacant position, appoints a majority of the board to represent the public interest; the remaining directors include chief executive Dario Amodei, his sister Daniela and investor Yasmin Razavi. Sarin says the arrangement is unusual, but may not be sufficient.
In short
- Anthropic is targeting a valuation of up to $1.4 trillion.
- Its prospectus outlines risks from its AI technology.
- Sarin questions whether its governance can manage them.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Anthropic’s unusual governance could help ensure that decisions reflect long-term public interests as well as shareholder returns. The Long-Term Benefit Trust’s power to appoint a board majority gives trustees a formal route to challenge leadership, while the company’s public benefit status and the co-founders’ substantial stake may support a sustained commitment to its stated mission.
The case against
The trust’s formal authority may not be enough to manage risks that Anthropic itself identifies as potentially severe, especially if trustee capacity, independence or accountability is limited. With co-founders holding a majority stake and senior executives and an investor also on the board, critics can reasonably question whether the structure provides robust, transparent oversight when safety concerns conflict with commercial pressure.
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