Anthropic’s $2T IPO puts trustee structure in spotlight

What happened

Anthropic is preparing a $2 trillion IPO, which would expose its unusual governance structure—self-appointed trustees guarding its mission—to public investors. The structure includes a 'kill switch' where trustees can be fired with 85% shareholder voting support, though this may change after going public.

Why it matters

Early investors backed Anthropic knowing its safety-focused governance, assuming capitalism would ultimately drive profitability. But public markets may be less forgiving, especially as Anthropic faces pressure to earn profit, and Harvard’s Fried warns investors should scrutinize both Anthropic and OpenAI’s arrangements before their IPOs.

What to watch

Whether the 85% supermajority requirement for firing trustees remains intact after the IPO, and how investors price Anthropic’s shares given its less risky structure compared to OpenAI’s governance debacle in November 2023.