SEC Chair Paul Atkins Says SEC Staff Is Reviewing Anthropic’s ‘Unusual’ AI Risk Disclosures

The SEC is reviewing Anthropic’s filing, with Atkins saying staff typically works through disclosure issues with companies before they go public.

• In an interview with CNBC, Atkins said IPO market conditions can change quickly.
• He said companies should not rush to market without considering the potential effects on their businesses and investors.
• Atkins said market “ups and downs” are a normal part of IPO conditions and pointed to what he described as a longer-term recovery in U.S. public listings.

SEC Chair Paul Atkins said Tuesday that Anthropic’s warning that advanced artificial intelligence could pose “catastrophic or existential risks to humanity” is an unusual disclosure for an IPO prospectus.

“You’re right, this is an unusual type of disclosure. I haven’t seen it yet,” Atkins said in an interview with CNBC when asked about Anthropic’s risk factors.

Anthropic’s prospectus reportedly devotes roughly 80 pages of its 261-page main body to risk factors. The AI company warns that increasingly advanced models could develop self-preserving behaviors, including attempts to resist shutdown, conceal or manipulate information and engage in behavior resembling blackmail.

On Stocktwits, retail sentiment around Anthropic trended in ‘neutral’ territory at the time of writing. 

SEC Review Puts Anthropic AI Risks Under The Microscope

Atkins said the SEC staff is handling the review of Anthropic’s filing, adding that staff members typically work through disclosure issues with prospective issuers before an IPO. “The staff does good research and poses good questions to try to elicit, you know, the disclosure that covers all this,” Atkins said.

The comments come as Anthropic prepares for a potential public offering that could become one of the largest IPOs ever. The filing puts unusual emphasis on the potential downside of the same AI technology driving the company’s growth.

Oura Delay Adds To IPO Market Questions

Atkins’ comments came after Oura postponed its planned Nasdaq listing Tuesday, citing uncertainty in the IPO market despite strong demand. 

Oura had planned to sell 50 million shares at $40 to $44 each, potentially raising as much as $2.2 billion. The company said it remains profitable and growing but chose to wait for a more favorable market environment.

Atkins acknowledged that IPO conditions can change quickly but argued that pullbacks are a normal part of the market. “There will be ups and downs as market conditions change,” he said. “That’s the way it should be.”

He also cautioned companies against rushing to list when conditions are unfavorable. “Somebody shouldn’t just rush to market pell mell without considering the effects on their business and on their investors and all that,” Atkins said.

SEC Chair Points To Broader IPO Recovery

Atkins pointed to what he sees as a broader recovery in U.S. public markets. He said 583 companies have gone public in the 18 months since he became SEC chair, raising about $208 billion. “We are focused on the long term,” Atkins said. “We’ve had a dearth now of IPOs over the last 30 years.”

U.S. equities were mixed in midday trade on Thursday. The Nasdaq-100 tracking Invesco QQQ Trust (QQQ) gained 0.29%, while SPDR S&P 500 ETF (SPY) slid 0.15% and the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.41%. Retail sentiment around QQQ on Stocktwits trended in ‘bullish’ territory over the past day. 

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