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

Matt Scherer argues that the SEC should stop Anthropic’s planned IPO until its finances are more fully verified and disclosed. Although the company reports $96 billion in cash and rapid revenue growth, its 2026 results are unaudited, and third-quarter figures suggest growth slowed sharply. The filings also reveal nearly $900 billion in future contractual commitments, including at least $582 billion owed to five technology and infrastructure companies for computing capacity. These obligations are effectively debts, Scherer says, and Anthropic’s plans to secure 15 gigawatts of data-center capacity - with an eventual need estimated at 20 to 25 gigawatts - make its commitments exceptionally large for a company going public.

The case for concern is that Anthropic may struggle to earn enough to cover those fixed costs. Businesses may not be willing to pay for increasingly powerful AI, while fierce competition, open-weight models, and locally run systems limit companies’ ability to raise prices. Meanwhile, chips, data centers, electricity, and cooling are expensive, and supply-chain problems and local opposition can delay construction and revenue. Scherer warns that an IPO would shift more of the risk from insiders and venture investors to ordinary investors, retirement savers, and the broader financial system, already exposed to concentrated technology stocks. He says the SEC can block an incomplete or materially inaccurate registration and should require two consecutive quarters of audited financial statements and clear disclosure of all significant spending commitments before allowing Anthropic to list.