Jeffrey Park, partner and portfolio manager at ParaFi Capital, said Anthropic should not pursue an initial public offering under its current setup. In a public post, Park argued that the strength of American capitalism rests on a social contract: if the public is expected to bear the risks tied to a company’s technology, the public should also have a chance to share in the upside rather than only absorb the costs.
Park said Anthropic is valued at $2 trillion while being held by roughly 300 private investors. In his view, an IPO at that stage would leave most of the early growth gains in the hands of a small private group, while exposing the broader public to the downside. He contrasted that with Meta, which he said is held by more than 5,000 institutions and millions of retail investors, noting that Facebook went public at a $100 billion valuation and allowed public investors to participate in a 10x post-listing return.
He also pointed to Anthropic’s prospectus, which he said includes 80 pages of risk factors warning that its technology could create “catastrophic or existential risks.” If that assessment is accurate, Park said the company should be partially nationalized rather than sold to retail investors. If not, he argued it should remain private and keep funding itself until it reaches sustainable profitability.
ChainCatcher reported that Jeffrey Park, partner and portfolio manager at ParaFi Capital, said Anthropic should not pursue an IPO based on its current metrics.
Park wrote that the strength of American capitalism rests on a social contract: if humanity must bear the risks, the public should also share in the prosperity rather than simply pay for it.
Park questions Anthropic’s current IPO case
According to Park, Anthropic is valued at $2 trillion and is owned by roughly 300 private investors. If it were to go public under those conditions, he said, the gains from its early growth would already have been captured by a small group of private holders, while the public would still be left to bear the risk.
He contrasted that with Meta, which he said is held by more than 5,000 institutions and millions of retail investors. Park added that Facebook went public at a $100 billion valuation, giving public investors access to a 10x return after listing.
Risk disclosure and funding path
Park also said Anthropic’s prospectus contains 80 pages of risk factors warning that its technology could create “catastrophic or existential risks.”
He argued that if that risk is real, the company should be partially nationalized instead of being sold to retail investors. Otherwise, he said, it should remain private and continue self-funding until it achieves sustainable profitability.
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