AI doomsday warnings unlikely to slow IPOs but questions linger

Anthropic AI firm is poised to surpass OpenAI in spearheading public market entries later this year, despite recent dire warnings about the consequences of advanced artificial intelligence. However, investors are left questioning the long-term viability of these companies' business models and whether regulatory intervention is necessary.

Safety concerns surrounding AI models surged this month following an Anthropic employee's resignation, warning of the potential risks to humanity. Jacob Coxon, who previously worked at OpenAI, recently left Anthropic amid a wave of support from colleagues, including a former OpenAI employee who expressed worry over the infinitesimal chance of AI causing human extinction.

Dario Amodei, Anthropic's CEO, has called for slower AI development, but did not address the impending IPO. The controversy surrounding Anthropic and OpenAI is providing a backdrop for their highly anticipated IPOs. It remains unclear if the companies will address hypothetical doomsday scenarios in their securities filings, as they are obliged to disclose known business risks to investors prior to going public.

Concerns have been raised about whether investors will discount the companies' stock following the resignations and CEO's safety warnings, similar to the response to SpaceX's IPO. However, Brad Gerstner, a venture capitalist with stakes in both companies, maintains that an IPO provides transparency for investors as seen in SpaceX's case.

The stakes extend beyond Anthropic and OpenAI, as significant tech players such as Microsoft, Amazon, Google, and Nvidia hold substantial investments in these AI labs. The success or failure of these IPOs carries implications for the broader US economy. OpenAI CEO Sam Altman recently announced a delay in the company's IPO until 2027 due to safety concerns, while OpenAI and Anthropic are both seeking substantial valuation marks for potential IPOs.

Leaders within both companies have voiced concerns over investor skittishness, market uncertainty, and SpaceX's underwhelming stock performance. Additionally, both companies are considering slowing down advanced technology development due to recent incidents involving AI systems going rogue. OpenAI CFO Sarah Friar dismissed the notion that slowing down would negatively impact the company's growth, stating that the vast amount of available intelligence would remain active regardless.

Anthropic's head of policy, Sarah Heck, emphasized that safety has always been a core value for the company, reassuring investors and customers alike.