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.