The SEC Should Block Anthropic's IPO to Protect the Public

(techpolicy.press)

249 points | by cdrnsf 5 hours ago

29 comments

  • marsten 4 hours ago
    The SEC's job isn't to adjudicate on whether Anthropic is a good or bad bet for investors. Its job is to ensure that investors have adequate visibility, and then get out of the way.

    It would be VERY BAD if we gave politicians arbitrary veto power over who IPOs and who doesn't. The threat of corruption should be obvious.

    • int32_64 3 minutes ago
      >isn't to adjudicate on whether Anthropic is a good or bad bet for investors

      Gensler spent his entire time at the SEC doing exactly that type of adjudication.

    • Waterluvian 3 hours ago
      If the government shouldn’t press its thumb on the scale at the start (fair to argue!) then it shouldn’t press its thumb on the scale when they demand a bailout.
      • whimsicalism 2 hours ago
        Agreed, so also don't bailout.
      • usefulcat 2 hours ago
        Agreed. However, “the government” is very much not a monolithic entity.
      • mapme 1 hour ago
        Bailouts have been a wonderful tool in the 21st century. During 2008 crisis, there was an unbelievable high ROI to them, both in the $ value of investments in the banks and in the global economic catastrophe it prevented.
        • dathery 1 hour ago
          It's not as simple as just looking at the ROI of an individual bailout; what if the crisis itself only happened at the level it did because of the expectation of the bailout in the first place?

          > Notably, the Financial Crisis Inquiry Commission (FCIC), tasked by Congress with investigating the causes of the financial crisis, cited moral hazard as a component of the crisis, arguing that many factors, including deregulation in the derivatives market in 2000, reduced federal oversight, and the potential for government bailout of "too big to fail" institutions all played a role in increasing moral hazard in the years leading up to the collapse.

          https://en.wikipedia.org/wiki/Moral_hazard#Connection_to_the...

        • sbuttgereit 11 minutes ago
          If we universally euthanize people once they reach a certain age and fail to pass certain capability tests, we'd also very likely see an ROI as the costs of maintaining the elderly and their increasing consumption could be put to more productive uses in the economy.

          Still... something strikes me as just... well... morally wrong about that.

        • DangitBobby 49 minutes ago
          Were the normal people who lost everything ever bailed out?
        • adventured 1 hour ago
          The housing bailout also arguably worked extraordinarily well at preventing a much greater, prolonged loss / depression of value in real-estate. The largest bailout in world history went to US homeowners via the Fed de facto purchasing garbage mortgages to pull them off the market.
          • 0x4e 57 minutes ago
            But isn’t that kicking the can down the road? Isn’t that the reason housing is incredibly over valued and wealth inequality is a huge problem here and around the world?
        • forgetfreeman 1 hour ago
          [dead]
      • za_creature 2 hours ago
        b-but but then... who owns the bag?

        do you know how expensive private jets are to operate?

      • shimman 2 hours ago
        Why not? The government is allowed to destroy private enterprise as much as the government is allowed to destroy society. Just because you personally disagree with it doesn't mean society doesn't have the right to destroy companies they find to be damaging to society.

        Destruction isn't the opposite of bail out, it's just destruction. The government is obligated to do what society wants. From this destruction would come creation by freeing up capital to do more productive things than waste money chasing fantasy rather than providing free school lunches or free university instead (you know the actual things that would generate economic value).

    • maxerickson 1 hour ago
      There's middle ground.

      Like I would ban controlling share classes. I guess there could be an exception if they had an aggressive conversion provision that turned them into normal shares as the company grew.

      You also omit an important constituency in your formulation. Corporations are extended limited liability with the idea that it will benefit the public. The government absolutely should be taking steps to ensure that this is true.

      • infecto 1 hour ago
        You could but why stop there? I argue that enforcing the standards for compliance and transparency is one of the greatest levers. After that it’s on the market. You will never stop an individual from buying fools gold and in some sense it’s healthy for some to fail no matter how silly the investment was.
      • dvt 1 hour ago
        > Like I would ban controlling share classes.

        Any reason why? To be honest, they never sit well with me either, but not sure what my argument would be for banning them. All investors are well aware of what they're putting their money into.

        • maxerickson 1 hour ago
          I think it pairs with the limited liability. It just isn't good to give unaccountable power to anyone. So it isn't about the investors, its about not letting the thing exist.
      • bickfordb 1 hour ago
        I agree with this. In all the tech cases I've seen it just seems to enable dynastic control with no obvious market, shareholder benefit.
      • CrimsonRain 1 hour ago
        Good thing you're not in charge with your communist attitude. If they kept controlling shares hidden from public, you'd had a point. Nobody is asking you to buy shares of companies with controlling shares.
    • gerdesj 3 hours ago
      The SEC would beg to differ with your first para. I imagine that "protect" involves "adjudication":

      "Founded to help our country respond to the Great Depression, we’re the agency that protects investors from misconduct, promotes fairness & efficiency in the securities markets, and facilitates capital formation for those looking to hire, innovate, and grow."

      • kasey_junk 3 hours ago
        Note what that explicitly doesn’t say. Any decisions about good or bad investments.
      • sbseitz 1 hour ago
        Hasn't done that my entire life. GG.
      • JacobAsmuth 3 hours ago
        Unless you're accusing Anthropic of misconduct in their financial reporting obligations I fail to see the connection.
        • eqvinox 1 hour ago
          I would certainly consider their "non-cancelable spending commitments" misconduct in their financial reporting obligations. The law doesn't seem to be on my side on that though. I don't have enough hubris to claim the law is wrong, but I don't think I'll retract my position either.
          • jacquesm 3 minutes ago
            It's a baked in poison pill. What that actually says is 'we're holding the economy for ransom, give us the money we want or the economy will crash and we've thrown the steering wheel out of the window'.

            The only way to respond to that is to let them crash but then you have an even bigger problem: OpenAI will have an actual monopoly on frontier models in the West.

          • czinck 1 hour ago
            Can you explain your objection more? They have several sections of their S-1 dedicated to this, and it's been public knowledge for a while (the other big IPO this year had it as a pro), so I'm not sure what you mean by "misconduct in their financial reporting obligations"
            • eqvinox 54 minutes ago
              They can have as many pages of explanation on it as they want, it doesn't address the fact that they need to be factored into headline numbers. It's the distinction between technical correctness and communicative correctness. It's like surprising and unusual clauses in contracts - those are invalid too if you aren't sufficiently upfront about it.

              It's an IPO, the P is public. The information needs to be consumable by the public. The level of knowledge that can be expected of a random IPO stock buyer isn't the same as that of a VC or private fund.

              And that's exactly where the SEC comes in. The 1930s went wrong enough, no point in doing a 2030s repeat.

        • stingraycharles 1 hour ago
          It’s astonishing how many people here claim to be financial experts and interpret the Anthropic IPO in a way that makes them look evil.
        • bix6 3 hours ago
          You mean like making up non-standard ARR calculations and not including your Q3 results in your initial S1 draft? Or you know hiding things in footnotes in the S1 so people don’t see the full math on your obligations?
          • Manuel_D 3 hours ago
            This wasn't hidden in the footnotes of the S1. It was quite clearly explained on page 3, under "Select Defined Terms": https://www.sec.gov/Archives/edgar/data/2130357/000162828026...

            > “Run-Rate Revenue” is an operating metric that refers to the estimated annualized value of our revenue-generating activity as of a measurement date, calculated as the sum of (i) our consumption-based fees during the trailing 28-day period ended on the measurement date, multiplied by 13, and (ii) our aggregate monthly subscription fees as of the measurement date, multiplied by 12. For purposes of calculating Run-Rate Revenue, consumption-based fees and subscription-based fees are derived from customer usage and active subscriptions.

            • what 1 hour ago
              > annualized revenue

              > trailing 28 days multiplied by 13

              I’m not aware of a year that has 13 months of 28 days? Why would you ever calculate it this way?

              • Anon1096 1 hour ago
                28 days is 4 weeks, so you don't get fewer or more weekend days arbitrarily. Used very commonly in some industries for financial reporting and also dashboards for software engineers.
                • what 40 minutes ago
                  What industries use 13 months of 28 days for financial reporting?
              • adgjlsfhk1 1 hour ago
                28*13=364. Months are different sizes so month*12 would be an over-estimate
                • what 1 hour ago
                  Don’t be stupid. They don’t use the same calculation for subscriptions, there they do 12 months. Only for consumption spending they come up with 13 months of 28 days. They could have just done 30 days for 12 months if they were concerned about over estimating. Guarantee 28 x 13 gives better number than 31 x 12.
                  • sdenton4 1 hour ago
                    The year with 372 days has lower daily consumption spending than the year with 364 days... What are you even.
                    • what 44 minutes ago
                      Um what? You seem confused, they didn’t measure a year with 372 or even 364 days. They measured 28 days. And it’s almost a certainty that taking the average spend over the last 28 days and multiplying by 13 is higher than taking the average spend over the last 31 days and multiplying by 12. Especially if we believe their revenue growth numbers.
                      • JumpCrisscross 15 minutes ago
                        > it’s almost a certainty that taking the average spend over the last 28 days and multiplying by 13 is higher than taking the average spend over the last 31 days and multiplying by 12

                        This is generally true of any growing time series. If you don't want this look at the audited GAAP figures.

              • lgfrbcsgo 1 hour ago
                The year has 52 weeks. 28 days is 4 weeks. 13*4=52
          • jobs_throwaway 2 hours ago
            ~All companies provide non-GAAP numbers alongside the standard ones, and amended S-1s are also extremely common. Neither of those is remotely indicative of anything nefarious
          • bananamogul 1 hour ago
            Anyone who doesn’t read footnotes in prospectuses, quarterly reports, etc. has no business investing, full stop.

            Footnotes are not some minor FYIs. In financial literature, they’re just a formatting choice. They’re fully part of the document.

          • losvedir 3 hours ago
            It's totally normal for companies to release their own take on the numbers alongside GAAP ones.
          • jeremyjh 3 hours ago
            They report GAAP earnings, and explain why it is not the best method to understand their current performance. Do you think it is more meaningful to investors to use their convertible notes mark-to-market accounting and worry about a loss that represents "paying their investors what their shares are worth"?

            Adjusted revenue figures are reported all the time for many different reasons, there is absolutely nothing special about this and I've not heard ANY financial analyst explain why GAAP is a better number here. You are salivating over a total nothing-burger.

            Also, if you didn't hear, their Q3 results were spectacular and were included in an amendment today.

            I'm not an Anthropic fan-boy and I won't be buying their offering but you've picked just about the two least relevant things in this offering to complain about.

            The reasons to be skeptical of this offering is what is described in the TFA: Anthropic is committed to spending 900 billion on compute over the next decade and if they can only profitably employ 80% of that it will utterly ruin them. Dario is putting all the chips on number 12. If he is right though - and inference usage explode by 1000x Anthropic has so much scarce compute locked up that they will do very, very well.

    • bix6 3 hours ago
      The SEC should adjudicate more. The entire SPAC era should never have happened.
      • tclarke142 26 minutes ago
        All the SPACS, the NKLA (truck rolling down a hill) stuff, GME/AMC, Zack Morris crypto pumpers, SAVA (fake Alzheimer's drug) and investigations of shorters was a total disgrace. Truly the golden age of fraud. I don't think we'll see a market that insane for another 20 years.
      • chollida1 59 minutes ago
        The SEC did adjudicate the SPAC era. If you think there was a crime that the SEC should pursue then lets discuss this but SPACs are a perfectly valid way to go public.

        Everyone gets audited financials before the De-SPAC process occurs.

      • chews 2 hours ago
        Chamath thinks otherwise.
        • thevillagechief 2 hours ago
          I'll admit in an earlier life I got suckered by Chamath's fast-talking, hyper-confident bluster. Dude was just a conman who got lucky. They say it's better to be lucky than smart.
          • chews 44 minutes ago
            Making the carry and fees to unwind a lockup that effectively does nothing is really really profitable.
    • _heimdall 2 hours ago
      Informed consent is extremely important. Its also exceedingly rare today, and the pandemic response didn't help.
      • warkdarrior 1 hour ago
        How did the pandemic response affect informed consent in the IPO market?
        • bryan_w 1 hour ago
          People are really playing madlibs in the comment section these days, sadly
    • Joel_Mckay 2 hours ago
      Agreed, some people like to gamble, and it is not in civilizations long-term interest to preserve the fiscal integrity of the irrational.

      People will learn risk-aversion vicariously, or end up living with the consequences of an inflated hubris. =3

    • cma 2 hours ago
      It's mainly the FTC, but I think the SEC does enforce some rules on pyramid schemes etc. even if the operators of them aren't being misleading. Certain business models are ruled out.

      Not that I think that applies here, just that they go beyond making sure everything has accurate filing and disclosure etc. and do have some mandate to look into the business models themselves in some cases.

    • alexashka 3 hours ago
      We should just give the power to people with the most money who pay politicians to give them tax cuts and to not do anything else.

      That's VERY GOOD.

      Right? Right.

      • cornell532 3 hours ago
        Nah. What’s good is giving lots of money to the GOVERNMENT who wants to subjugate you.

        Then they’ll take your money and piss it away because A) it doesn’t belong to bureaucrats; so they’re spendthrift

        B) bureaucrats are not gonna use what they buy; so it’s shit

    • darig 2 hours ago
      [dead]
  • titanomachy 4 hours ago
    > the number of Americans using AI at work fell significantly between the summers of 2025 (46%) and 2026 (33%).

    Surprising. I couldn't find the study they're citing, and they didn't include a link. Anecdotally, my friends across various industries (tech, finance, medicine, scientific research) are all using AI more heavily as time goes on.

    • hannasanarion 3 hours ago
      Found the paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5136877

      I am not qualified to make a judgement on the research quality, but it strikes me as a little weird? And also weird to cite when trying to create an "AI is stalling" narrative, because the text of the paper doesn't really support that at all.

      The claim seems to be based on a single figure that the authors present as additional context in an appendix, which shows the trends of four surveys, in which only one of the four shows a decline. The authors don't even seem to think the decline is significant enough to comment on except to say that "the plateau in late 2025 reflects declining interest and correlates with google search trends for ChatGPT and Gemini" (which they also show using a chart that does not look like a plateau or decline to me at all).

      The methodology and survey questions are included, the numbers seem to be based on a straightforward "Do you use generative AI for your job"?

      It's weirdly ChatGPT and Gemini centric, the word "Claude" only appears once, in a definition, and "Microsoft" and "Copilot" are nowhere to be seen. I don't know how much to read into that, it just strikes me as weird and noteworthy in a paper that by its own admission is detecting a trend that is the opposite of everyone else doing large scale surveys on the topic.

      • jmtulloss 3 hours ago
        If you are not looking at Claude usage then a plateau amongst Claude competitors in late 2025 makes perfect sense.
    • simonw 3 hours ago
      That sentence links to https://www.economist.com/finance-and-economics/2026/07/28/a...

      Here's the relevant paragraph from that story:

      > Yet those numbers may have recently levelled off. In May economists at the Census Bureau reported that “ai use remained relatively steady in many sectors over the last six months.” A survey by Jon Hartley of the University of Texas at Austin and others has found that about 33% of people now use ai at work, down from a peak of 46% in mid-2025.

      Coincidentally I posted an updated chart of AI use according to the Census Bureau this morning - https://simonwillison.net/2026/Nov/2/census-bureau-super-int... - they changed their methodology in December but the numbers have been trending up in 2026.

      As for the "survey by Jon Hartley", I think that's this one: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5136877 - "Job Loss Fears in the First Years of Generative Artificial Intelligence".

      They surveyed ~24,000 people with the question "Do you use generative AI for your job?", then later asked which of the following tools they used:

      ChatGPT, Midjourney, Claude, Gemini, Github Copilot, Scribe, Embedded products, DeepSeek, Apple Intelligence, Meta AI (Llama), Adobe Firefly

      After even more digging, I think I found the raw data for their survey in the Internet Archive: https://web.archive.org/web/20250910015550/https://generativ...

      Frustratingly, it looks like that only has their 2024 and 2025 data - the 2026 data is what would show that "33% of people now use ai at work" number quoted in the Economist article, but https://generativeairesearch.org/ no longer loads and the Internet Archive don't seem to have captured anything later than 2025.

      • gruez 3 hours ago
        "ai use remained relatively steady" =/= "Americans using AI at work fell significantly "
    • forbiddenvoid 3 hours ago
      I am only one data point, but I have been very intentional about significantly reducing my AI usage. Many other people in my network are doing the same where it's reasonable to do so.

      Some people are being railroaded into more AI usage by mandate of their organizations, not because they're actually getting personal value out of it.

      ETA: I still don't think the SEC should get involved in what companies should or should not be allowed to list publicly beyond certifying that the company is not materially misleading their investors.

    • Aurornis 2 hours ago
      It’s not hard to find fluctuating surveys, but it’s the wrong question to be asking.

      The number of people using AI at work could fall to 5%, but if those 5% of people were keeping Claude busy all day and night the overall expenditure on AI could increase.

      The growing AI revenues don’t require everyone at the office to be using it. If the software engineers are each spending $10K a month on tokens, it doesn’t matter at all if Bob from HR is doing $0.50 of Copilot queries every day.

    • ecommerceguy 3 hours ago
      I'm seeing in offices, usage has gone down significantly. For alot of people, it takes more time to figure out how to get ai to do something vs just doing it.
      • leptons 3 hours ago
        I'm pretty exhausted by the amount of prompting it takes to get Opus 5.5 to do some things the way I want it done. And I'm fighting against a complex system no human wrote. Claude also writes Jira tickets and voluminous comments that no human reasonably understands, so it's all become a huge clusterfuck. Nobody even runs the project locally so we can't even review the changes until they hit a dev server 30 or 40 minutes later. Been at this company for 8 years and this year has turned into a complete shitshow thanks to the CTO drinking the AI kool-aide. I'm looking for a new job.
      • antaviana 3 hours ago
        I have the impression that the gifted can leverage AI a lot more than normal people. My early views about AI were that it would democratize intelligence, but now my opinion is that it will be a huge catalyst for the gifted people, increasing social and economic differences.
        • claytongulick 3 hours ago
          From personal experience, what I've seen is the opposite. The less "gifted" attempt to lean on AI to close capability gaps, with results that are amusing at best, and disastrous at worst.
          • R_D_Olivaw 56 minutes ago
            I think this is in line with GPs point, no?

            The gifted use it and do better/greater/more, while the less "gifted" can't seem to get too much out of it, or things that are passing novelty at best.

            (At least that's how I read it)

    • loeg 1 hour ago
      Anecdotally, I didn't start using AI at work until after summer 2025, and now it's essential.
    • sjdh76 3 hours ago
      Its too early to tell what value will be found especially in large corps, where lot of the institutional knowledge that needs to be transferred into these systems is not straight forward to extract and encode. It effects who has power in different parts of large systems. So things take time.

      Recent example is the time they took time to wrap their head around Cloud. Now look at the revenues they generate for Amazon, Microsoft, Google, Oracle etc. Early days.

    • tbrownaw 4 hours ago
      If I'm using a tool that in turn uses AI -- like how more and more office stuff has magic autocomplete, or how Teams does automatic transcription and summaries -- am I really using AI?
    • giancarlostoro 2 hours ago
      That is a weird stat, I would assume it "fell" because all the insane amounts of free compute that was going around died down around those years, and some companies finally made AI policies. My employer (in one of those fancy Fortune lists) still is not using it in a meaningful way for development.
    • Bender 4 hours ago
      I think it might also be interesting to see a breakdown of how many people are using the free versions, the basic, pro and enterprise versions of which models from which AI companies and what they are using them for.
    • Jedd 4 hours ago
      The link he provides is to a paywall, but bouncing over that, you can see the economist's lack of proper citation too, when they note:

      > A survey by Jon Hartley of the University of Texas at Austin and others has found that about 33% of people now use AI at work, down from a peak of 46% in mid-2025.

  • cowlevel 4 hours ago
    The SEC doesn't exist to play favourites. If Anthropic has broken a law they can be blocked for that. If not, then it would be unfair to them to block them for things that other companies with IPOs have done. Live by market primacy, die by market primacy.
    • pixelatedindex 3 hours ago
      The concern is that “bad apples” get into indices and then that starts to rot people’s futures. I’m not sure how that will play out (indices can kick them out, or if the company really fails the market cap will reflect that and the index can “heal”). I’m guessing Enron was part of the index at some point, but we survived that.
      • cowlevel 1 hour ago
        Well as we already saw with SpaceX, indices are separate entities that are not fully controlled by the SEC. There are plenty of companies on the market that aren't in indices anyway, you don't need to block a company from the market to block it from the index.
      • infecto 1 hour ago
        People keep saying “bad apples into indices” but I have yet to truly understand what folks mean. Most of the mainstay indices would not include a fresh on the block new comer and it would generally need to follow other criteria. Yes SpaceX got added to the Nasdaq 100 but that is the whole purpose of that index. People should not be investing their savings in that.
    • jubilanti 2 hours ago
      The law is the Clayton Antitrust Act of 1913, among others, and it is intentionally incredibly vague when it comes to what counts as anticompetitive.
    • Danox 3 hours ago
      All human endeavors play favorites. We shall see if the SEC will let lightning strike two times in one year.
      • AnimalMuppet 3 hours ago
        Even if so, human endeavors like the SEC are supposed to play favorites according to specific, well-established rules. At that point, it becomes a bit of a stretch to call it "playing favorites".

        Or, if you insist on keeping your claim, then when the SEC is playing "favorites", it's "the favorite set of rules", not favorite companies.

  • stingraycharles 4 hours ago
    If the SEC allowed the SpaceX IPO they most certainly will allow the Anthropic IPO. From my point of view, the Anthropic IPO is a much more genuine one than the shenanigans that were going on with SpaceX, yet we’re all investing into that through ETFs as well.

    Additionally, some ETFs have built in protections to rule out businesses that are not yet profitable (like SpaceX and Anthropic), which I think is a great rule.

    • applebottomjean 4 hours ago
      If companies were already profitable why would they go public?
      • stingraycharles 4 hours ago
        To let early investors exit? Most private funds like that have a horizon of 10 years, so they want to sell their investments at some point.
      • ben_w 4 hours ago
        Same reason they take private investments or loans: To grow faster than would be possible without that.
        • stingraycharles 1 hour ago
          That’s the old style IPO though, most IPOs nowadays do not actually raise money.

          SpaceX made that even more clear by doing an explicit offering of shares to raise money just months after their IPO, which didn’t raise them any money at all but was just for investors and employees.

          • chollida1 1 hour ago
            I"m not sure i can agree with your statement.

            > SpaceX made that even more clear by doing an explicit offering of shares to raise money just months after their IPO, which didn’t raise them any money at all but was just for investors and employees

            SpaceX raised $85B at their IPO that went all to the company. It was a primary stock ipo so it was all newly issued stock from teh company included teh 15% additional shoe.

            The only IPO's i can see on file where companies didn't raies money were 3 direct listings

            - Georgia Banking Company (GBC)

            - avion Healthcare (DAVI)

            - TurboGen Ltd. (TRBG),

            If you know any of those companies you are deep into the cash equity markets:)

      • sailfast 1 hour ago
        Clearly to hedge the risk of $580 Billion in long term commitments by seeking funds from public markets.
      • infinite_spin 4 hours ago
        public investment can be magnitudes larger than your profit, allowing growth that would otherwise not be possible
      • saalweachter 2 hours ago
        It used to be the norm for companies to become profitable, then IPO, moreso for megacorps.

        If I am remembering my history correctly, the first company to go public with a multi-billion dollar valuation while being unprofitable was Netscape, which kicked off the dotcom bubble.

    • CamperBob2 3 hours ago
      Elon Musk gave Trump $290M.

      Greg Brockman, OpenAI's president, gave Trump $25M.

      Dario Amodei gave Trump a hard time.

      Do the math...

      • stingraycharles 1 hour ago
        And what’s the math? OpenAI is not going public, Anthropic is, and the math is… the SEC will block the Anthropic IPO because of what exactly?
      • lopsotronic 1 hour ago
        The simplest explanation is, barring all else, usually the most likely.
  • stockresearcher 5 hours ago
    There’s plenty of argument about how if a company has an IPO then they are, by definition, part of the market. And if you bought an index fund that means to represent a part of the market that this company is in, then that company should be in the index fund.

    You had lots of choices, you made this choice, and you can always change your mind. Do we really need to have the government step in to prevent you from having to choose something else?

    • JumpCrisscross 6 minutes ago
      > There’s plenty of argument about how if a company has an IPO then they are, by definition, part of the market

      The core thesis is all assets are part of the market. Public and private. The challenge is rebalancing cost, which is driven by transaction costs. Having a tiny percent of every single asset rebalanced every single second is great in theory, since you'll be diversified across the market as a whole, but you'll also lose all your money in fees.

      This is why the S&P 500 exists. It's a limited number of names that are very liquid, i.e. transactable at scale at reasonable cost. As trading fees went down we saw larger and larger indices.

    • thinkingtoilet 4 hours ago
      Yes. There are too many people entire retirements on the line to hide behind the usual song and dance people do around this. What's the alternative. Let them proceed, the bubble burst, tank the market, then have the poorest and least equipped people to manage a recession just suffer? This is exactly what a government for the people could do. Or we could just keep letting rich assholes destroy everything with no consequences.
      • CrimsonRain 1 hour ago
        Don't buy shares of companies you don't like. Also don't buy etf and then cry about the companies included in the etf. Problem solved.
      • stockresearcher 3 hours ago
        Do you really expect to learn something that you don't already know by making Anthropic do two quarters of audited financials? What happens then? Come up with another reason for delay?
        • JumpCrisscross 53 minutes ago
          > Do you really expect to learn something that you don't already know by making Anthropic do two quarters of audited financials?

          Why do you think you don’t already have more than that many months of audited Anthropic financials?

        • andriy_koval 3 hours ago
          I won't be surprised if audit finds another few 100B of hidden debt
          • stockresearcher 3 hours ago
            But would that change your opinion?
            • ajmurmann 3 hours ago
              My opinion or the opinion of investors who trade individual stock?
            • andriy_koval 3 hours ago
              higher chance to recieve junk rating and reduced initial evaluation
              • stockresearcher 2 hours ago
                Look, if it makes you feel better, I'm happy to state that I thought the SpaceX IPO price was too high and that it is probably still too high. But in the long run, it might turn out to be a great investment.

                I believe that the Anthropic IPO price will be too high, but also in the long run it might turn out to be a great investment.

                The most important thing I believe is that this is what I signed up for when I bought lots and lots of VTI. And that I can change to a different set of investments pretty much instantly for 9 hours a day, 5 days a week. With no tax hit because it's in my retirement account.

                • andriy_koval 2 hours ago
                  > I signed up for when I bought lots and lots of VTI. And that I can change to a different set of investments pretty much instantly for 9 hours a day

                  I don't think that's what avg 401k holder is doing

      • nh23423fefe 4 hours ago
        The poorest least equipped people don't have money in the market. Are you suggesting the SEC is capable of stopping a recession from occuring?
      • jobs_throwaway 2 hours ago
        Pretty gross seeing this kind of paternalistic view get so much agreement on HN. The "poorest and least equipped people" are invested in the stock market? Give me a break.
      • katbyte 3 hours ago
        Maybe the stock market shouldn’t be people’s retirements?
      • stale2002 3 hours ago
        > What's the alternative.

        The alternative is don't invest in them?

        Or, if you are this certain that they are going to fail, then short their stock. You could make millions.

      • spiderice 3 hours ago
        The "the usual song and dance people" of letting people choose what to do with their money. Sure bud.
  • edg5000 10 minutes ago
    > Multiple studies, including from organizations notable for their bullishness on AI, suggest LLMs are not accelerating productivity or otherwise generating positive returns on investment for most businesses.

    Maybe this is true for most businesses, but that's because most businesses are not really leaning into agentic AI yet. It seems software devs started to use it in 2025 and OpenAI and Anthropic have tried expanding the use cases with their GUIs and webbased agentic systems, which I think means there is incredible growrth opportunity when the masses start adopting it.

    It may take a few years though.

  • Animats 54 minutes ago
    As long as the S-1 is honest, the SEC is doing its job.

    A real risk is the market cap, including insider holdings, being large enough to force the stock into major indices. That makes the stock a must-buy for index funds. That in turn props up the stock regardless of how crappy the financial position and how small the float. That was controversial when Space-X went public. It went into several major indices despite not really being that big in terms of revenue.

    • ddxv 7 minutes ago
      It felt a bit dishonest in that they pushed out their S-1 without Q3, and then it turns out Q3 revenue growth is decelerating (which they added in the recent addendum).

      That being said, I don't think the government should be involved unless it's to unilaterally ban these "public" companies where shareholders do not have equal voting power with 'founders'.

      If people want to invest, let them invest.

      • JumpCrisscross 4 minutes ago
        > felt a bit dishonest in that they pushed out their S-1 without Q3, and then it turns out Q3 revenue growth is decelerating

        Why? Nobody is buying their shares without the opportunity to review both sets of data.

  • MaintenanceMode 30 minutes ago
    The sources in this article as so dubious. "ChicagoLand" Chicago chamber of commerce? A Tom's Hardware article from February of '26. Things have changed so much since February, it's not even funny to quote something so old. A bunch of the other articles are from 2025.

    This is kind of desperate. The argument falls flat.

  • wqtz 4 hours ago
    The SEC is less of a protective agency and more of a revenue-generating agency (in practice and to some degree in principle). If Anthropic does not go public, you have nothing to stop them from receiving private funding from sovereign wealth funds. You have to understand that the Vision Fund failure did not mean that overnight sovereign wealth funds stopped making money; they are desperate to invest in private companies, and if you look at some of the, ahh... "stories"... you do not see massive non-Western investment in AI companies yet. But they are sitting on a mountain of cash.

    Moreover, every branch and division across the US government recognizes one thing... the public market is plateauing. It is not a numbers thing; it is a sentiment thing. The post-pandemic tech boom needs to continue, at least be stabilized. AI's expectation to hit the public market is largely keeping a lot of the momentum going.

    If Anthropic does not enter the public market, it is going to be a major distressing event for SEC who make money from regulatory fees and a shit ton of fees from publicly listed companies. There is zero incentive to stop them. The SEC tries its best for the benefit of publicly listed companies, exchanges, brokers, institutional investors etc. who all benefit from the IPO.

  • kazinator 3 hours ago
    > Dig a little deeper, however, and a far bleaker picture emerges

    If an online tech journalist can figure out this sort of thing, with the information available to him, maybe so can members of the investing public?

    And the ones who don't are just going to be victims of their own greed anyway.

  • alistairSH 4 hours ago
    Seems like requiring an audit might be the solution to this issue? Why they (or anybody) can go public, with financials that are little more than a pinky-swear, is beyond me.
    • senordevnyc 2 hours ago
      They have been audited, it’s in the S-1.
    • JumpCrisscross 4 hours ago
      What makes you think Anthropic isn’t audited?
      • nicce 3 hours ago
        That is something obvious to add on relevant public materials.
        • JumpCrisscross 0 minutes ago
          > That is something obvious to add on relevant public materials

          Like the S-1? Where it clearly shows the auditor's opinion where it goes in every S-1? Because pretty much every company going public (through a IPO) in America needs to have audited financials [1].

          [1] https://www.law.cornell.edu/wex/regulation_s-x

        • senordevnyc 2 hours ago
          Like the S-1? Guess what’s in there…
          • JumpCrisscross 58 minutes ago
            The illiteracy financial influencers are promoting is worryingly apparent in this thread.
  • millspore 5 hours ago
    Does inclusion in S&P 500 even happen fast enough after IPO to matter here, thought there was usually a wait period before index funds have to buy in?
    • phyzix5761 4 hours ago
      12 month waiting period plus 4+ quarters of profitable earnings before you qualify for inclusion.
    • JumpCrisscross 5 hours ago
      No.
    • msy 5 hours ago
      The SEC's obligation is to all market participants, not just index fund holders.
      • jobs_throwaway 2 hours ago
        And denying market participant's ability to invest or short one of the most important companies in the world would be malpractice
      • cgio 4 hours ago
        Arguably if you consciously choose to invest on a stock there should be no protection or obstacle other than regulated controls. For indices I see the point of extra protection. Where it gets murky is when you look at retirement funds, where you still have no control, but that should be regulation on the funds themselves rather than the stock.
    • sandworm101 5 hours ago
      These days? All rules are maybe this or maybe that depending on political winds.

      Frankly, no company should be allowed to IPO without showing steady profit. An exchange or index that promotes IPOs of unprofitable companies diminishes its reputation, and the reputation of all other stocks it indexes.

      Anthropic is free to continue selling shares privately. They can setup a website and take cc payments if the care so much.

      • packetlost 4 hours ago
        > Frankly, no company should be allowed to IPO without showing steady profit

        This is directly counter to the original point of public markets at all

  • andai 2 hours ago
    I thought they were going to say, we have a duty to protect the public from the self-mutating swarms of artificial life about to explode onto our networks (as per the Astra/Qwen article on front page), but no, they meant the dubious VC finances!
  • dmix 1 hour ago
    Reading the other articles on this site, it seems to be about pushing aggressive AI regulation and general AI doomerism?
  • jawiggins 4 hours ago
    This author seems to be focused on if Anthropic will continue to grow and return value in the future. But it's disappointing that no one has questioned why they waited so long to go public. If they had gone public at a $100b evaluation, everyday people and pension funds could have invested in and seen the returns that AI has already delivered. Instead, Anthropic leadership runs around saying how AI need to benefit society as a whole rather than a select few, meanwhile they have kept the benefit of >$1t for themselves and refused to share it with others.
    • thevinter 4 hours ago
      A year ago Anthropic was losing billions per year. I'm sure that if it had listed and then collapsed everyone would've gone "first they run around saying how AI needs to benefit society and then they dump a cash-burning company on pension funds"
      • jawiggins 4 hours ago
        But pension funds are already invested in them through the VC funds. The only difference is (more) people would be able to invest in Anthropic without paying management fees to middlemen.
        • xvector 4 hours ago
          Most 401ks and pension funds do not invest in pre IPO companies, this is just blatant misinformation
          • JumpCrisscross 4 hours ago
            > Most 401ks and pension funds do not invest in pre IPO companies

            Pensions do, individuals don’t.

            “Less than 1% of the $14 trillion in assets in the defined contribution retirement system is invested in private markets, compared with approximately 24% for U.S. public pension funds and 17% for private pension funds as of 2023” [1].

            [1] https://bipartisanpolicy.org/article/the-role-of-private-mar...

            • senordevnyc 2 hours ago
              “Private markets” is not the same thing as pre-IPO companies
              • JumpCrisscross 59 minutes ago
                What market do you thinking pre-IPO companies occupy?

                Like, I can tell you definitively pensions are pretty broadly invested in Anthropic specifically through a number of funds.

          • drdrey 3 hours ago
            some pension funds definitely do
          • bryan_w 3 hours ago
            Who said anything about 401ks?
      • NewJazz 4 hours ago
        Better to dump it when valuation is low instead of inflated.
      • xienze 4 hours ago
        Aren't they still losing billions per year?
  • MattDamonSpace 2 hours ago
    What a bad idea “let’s further empower a fickle federal gov to dictate the lives of citizens”

    Oh but sure it’s for a good cause

    Genuinely surprised they didn’t ask us to “think of the children”

  • wmf 4 hours ago
    The only real argument here is that Anthropic has Q3 numbers but they aren't included in the prospectus because they may be bad. Delaying the IPO by a few weeks would solve that problem.
    • novia 2 hours ago
      They already released the q3 numbers yesterday, right?
      • ddxv 6 minutes ago
        Yep, and as was expected revenue growth is slowing down. But it was a bit shady they went out of their way to not include that in the initial S-1
      • wmf 2 hours ago
        Ah, you're right. I didn't notice they updated the prospectus today.
  • singron 4 hours ago
    If Anthropic can't easily pay all these commitments, what are the odds that they get all their creditors together and negotiate a mini chapter 11 (e.g. by adding 5 years to the commitment timelines, or canceling a proportion of each commitment)? The creditors have no interest in Anthropic going under, and with enough advanced notice, they can pause or cancel their own investments and probably take reduced losses.
  • Arubis 3 hours ago
    Signed with love, Sam.

    —

    In all seriousness, I get the argument that Anthropic is likely foisting a huge liability onto Americans via the ETFs in their retirement plans that’d pick up $AMADEO because it’ll be large cap. But if we’re gonna make that argument, it needs to be by sector or by risk class, not targeted at a single company.

  • HexnMarcusWolfe 1 hour ago
    No they shouldn't.

    It's a "Junk stock". They should let it crash and burn.

  • davidguetta 5 hours ago
    Are the pensions fund not "automatically" investing in anthropic as soon as it's public because it's in the S&P 500 (like spacex) ?
    • judge2020 5 hours ago
      The S&P 500 denied early admission to SpaceX.
    • phyzix5761 4 hours ago
      There's a 12 month waiting period plus the company has to show 4+ quarters of positive net earnings before qualifying to be included.
    • gloryjulio 5 hours ago
      Spacex is not included in sp500 yet. Nasdaq is the one fast tracked spacex to dump on the retails
      • andriy_koval 5 hours ago
        Many funds use Russel indexes, which included SpaceX already
        • derektank 5 hours ago
          The Russell indices, and other indices like the CRSP total market index, might include newly public companies like SpaceX, but the relative weight of them in the index will be float-adjusted, so a company like SpaceX that has kept a lot of its shares locked up will be underrepresented in the index compared to a more established public company.
        • JumpCrisscross 5 hours ago
          Many funds use lots of indices. Very few dollars are being forced to buy these offerings.
          • andriy_koval 5 hours ago
            Russel indexes are used by very large funds, e.g. vanguard usually track russel
            • edoceo 4 hours ago
              Which Vanguard and at which weight?
              • andriy_koval 4 hours ago
                the largest 2.3T is https://finance.yahoo.com/quote/VTI/ which tracks CSRP which fasttracked SPaceX
                • derektank 4 hours ago
                  To be clear, while the CRSP fast tracked SpaceX’s admission to their total market index, that policy (which states that if a security's total market cap is larger than the breakpoint of the CRSP US Small Cap Index, it is can be added after 5 days of trading) has been in place for at least a decade. Unlike SpaceX’s admission to the Nasdaq, this did not represent a change in policy.
                  • andriy_koval 4 hours ago
                    this article says crsp changed policy too: https://www.morningstar.com/funds/spacex-ipo-how-index-funds...
                    • stockresearcher 3 hours ago
                      (FYI, CRSP doesn't exist anymore)

                      CRSP adjusted their methodology prior to SpaceX IPO being announced. It's part of a larger discussion about what the purpose of an index is and how people invest. Vanguard is not out to screw people's retirement up (quite the opposite really). Anyone is welcome to be part of the discussion, but it's hard to get anyone to take you seriously if you only come out of the woodwork when something "bad" is about to happen.

                      • andriy_koval 2 hours ago
                        > (FYI, CRSP doesn't exist anymore)

                        it absolutely exists, but was renamed

                        > CRSP adjusted their methodology prior to SpaceX IPO being announced.

                        important part is when SpaceX ipo plans were decided, not announced to clueless public

                • JumpCrisscross 4 hours ago
                  How many marginal dollars from that went into SpaceX?

                  The index drama was mostly a creation of influencers.

                  • andriy_koval 3 hours ago
                    so you saying you know exact number affected by index drama, and it is small? What is that?
  • JumpCrisscross 5 hours ago
    This is so dumb. Let the market figure it out. If it goes public and crashes, we get a valuable answer that saves tens of billions of wasted capital investment. If it floats, the dude who posts nonsense math can keep filling his subscriptions.
    • digitaltrees 5 hours ago
      Please edit the first sentence out. Keep it civil.

      As far as your claim, it's fine to say let the market sort it out, but perhaps consider that pension funds and index funds now represent a market distortion that means anthropic crashing is harder and even if it does would happen after the mandatory purchases by the index funds which is basically a transfer from the public to the insiders at anthropic

      • phyzix5761 4 hours ago
        There's a 12 month waiting period plus the company has to show 4+ quarters of positive net earnings before qualifying to be included in the S&P 500. Pension and index funds are gonna be ok.
      • JumpCrisscross 4 hours ago
        > mandatory purchases by the index funds

        How many dollars do you think are forced to purchase these companies’ shares?

      • yorwba 4 hours ago
        Maybe the SEC should instead block funds from distorting the market by making large predictable transactions, then.
    • andy_ppp 5 hours ago
      But we all know markets aren’t rational, I’m unconvinced we shouldn’t step in… if I started selling anthrax the government would try to stop me. This product might malfunction and show people how to make said anthrax which would be bad. Same with most things, everyone thinks this is a bubble. I think we should actually just put a cap on how much hardware data centres can buy per year, that would be the sensible solution tbh.
    • fzeroracer 3 hours ago
      How will 'the market' figure it out when these companies have been directly angling for the too big to fail line? The end result is that they'll get a bailout due to national security interests or something so that the economy doesn't completely shit itself and then we're on the hook for it.

      That's why people want the IPO to be blocked because we've seen what happens before.

  • Danox 3 hours ago
    The insiders at the top won’t allow it…
  • zzzeek 4 hours ago
    I'm sorry, evacuate? In our moment of triumph?
  • zer00eyz 5 hours ago
    It's going to get hammered into oblivion long before it gets to where it can end up on sp500. The election, and what happens after may see them delaying the IPO (if I was one to bet)

    But it also sort of doesn't matter. Anthropic, not in sp500, ends up a fail then the "bubble" pops and the sp500 gets ugly.

    • fullshark 4 hours ago
      Why do you think they will delay the IPO? I bet there's enough demand to buy their stock.
    • xur17 4 hours ago
      > if I was one to bet

      You can do exactly that on Polymarket and make good money if you are right.

  • slipperybeluga 5 hours ago
    [dead]
  • CurbStomper5 4 hours ago
    [dead]
  • demo4567 4 hours ago
    The SEC should SEC to protect the public.