Artificial Intelligence1 min read

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

By · Published by Everything Blog

In short

The company plans a November 2026 public debut backed by $96 billion in cash reserves and seemingly strong topline revenues. However, financial filings disclose at least $582 billion in non-cancelable compute and infrastructure contracts tied to tech giants like Amazon, Google, and Microsoft. Meeting these long-term commitments may prove difficult after unaudited third-quarter results revealed that revenue growth slowed considerably over the summer of 2026. Commercial headwinds are compounded by weakening demand, highlighted by the tepid market reception for the company's Fable 5 model release.

Key points

  • Waning commercial interest is evident as workplace AI usage among Americans fell from 46%…: Waning commercial interest is evident as workplace AI usage among Americans fell from 46% in 2025 to 33% in 2026.
  • Severe competition from rivals like OpenAI, Meta, Google, Microsoft, and SpaceX challenge…: Severe competition from rivals like OpenAI, Meta, Google, Microsoft, and SpaceX challenges the company's ability to maintain high revenue growth.
  • Critics warn that failing to cover massive infrastructure debts could expose retail inves…: Critics warn that failing to cover massive infrastructure debts could expose retail investors and retirees to devastating financial losses.

Sources checked by our analysis pipeline: 1

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

Matt Scherer / Nov 2, 2026Matt Scherer is co-author of the recent report Brace for Impact: Protecting people and the economy when the AI bubble bursts.

Things are seldom what they seem when it comes to the finances of the AI industry. The AI ecosystem’s circular business dealings, extensive use of financial engineering, and otherwise murky finances make it hard for investors, regulators, or workers saving for retirement to get an accurate financial picture of AI companies.

That is particularly true of Anthropic, which filed the registration statement for its initial public offering (IPO) last week ahead of a planned November stock market debut.

The company’s topline financial figures look quite impressive for a startup, with revenues that appear to have grown quickly over the course of 2026 and a fairly healthy balance sheet — on the surface, that is.

Dig a little deeper, however, and a far bleaker picture emerges. Footnotes to the company’s most recent financial disclosures revealed nearly $900 billion in spending commitments, most of them stretching…

Artificial Intelligence