AI doomsday warnings unlikely to slow IPOs but questions linger

Anthropic, the AI startup, is anticipated to lead a significant IPO later this year, outpacing its rival OpenAI, despite recent warnings of potential doom. The concerns arose following the resignation of a former Anthropic employee, Jacob Coxon, who expressed worry about the industry's risk to humanity's survival. Jacob's departure was met with support from his former colleagues at Anthropic, including one who called for a temporary slowdown in AI development.

However, Anthropic's CEO, Dario Amodei, did not comment on the IPO during his call for slowing down AI development.

The IPO announcements from OpenAI and Anthropic have sparked discussions about their business models and the need for regulatory oversight. While companies are obligated to disclose known risks to investors before going public, questions remain about the safety of AI models and whether regulators should intervene.

Jacob Coxon's concerns, amplified by his former colleagues, suggest a significant risk that could prompt investors to demand a substantial discount if true. However, Brad Gerstner, a venture capitalist with stakes in both companies, downplayed the concerns, stating that an IPO provides transparency for investors. He cited the success of SpaceX's IPO as an example, despite its subsequent stock performance.

The IPO performance of Anthropic and OpenAI will also impact the debut of OpenAI in 2027, according to tech giants such as Microsoft, Amazon, Google, and Nvidia, which hold substantial investments in the AI sector. The success or failure of these IPOs could have implications for the broader US economy, given its growing dependence on AI development.

OpenAI CEO Sam Altman has announced a delay in his company's IPO until 2027, citing safety concerns. Despite the recent AI safety debates, Altman and OpenAI executives are pursuing a new funding round, aiming for a valuation of $1.2 trillion or more before the IPO. Anthropic, on the other hand, is reportedly targeting a $2 trillion valuation for its potential IPO in October.

Both companies have also proposed slowing down AI development to address recent incidents involving AI technology going rogue. However, executives argue that safety measures do not compromise their core business or revenue growth, as the potential intelligence available in the world is massive.