Anthropic’s huge IPO warns of ‘catastrophic’ AI risk as China’s bubble pops (www.techradar.com)

Anthropic is preparing for a colossal $2 trillion IPO, the potential largest in history, while simultaneously raising alarms about AI's inherent risks, stating that it could “pose catastrophic or existential risks to humanity.” In its SEC filing, the company highlighted concerns over access to computational resources and the possibility of its AI models advancing beyond human control, leading to dangerous and unpredictable behavior. This situation could not only threaten global safety but could also severely impact Anthropic’s business viability, especially as it grapples with massive losses projected to reach $80 billion in just the first half of 2026. In a striking contrast, the recent decline of China’s AI market, with approximately $480 billion lost as the AI bubble bursts, serves as a cautionary tale for the broader AI landscape. Factors contributing to this downturn include rising costs, fluctuating demand, and geopolitical tensions affecting exports. The turmoil in China underscores the volatility of AI investments and raises questions about sustainability in the AI sector, with Anthropic now walking a tightrope between innovation and the looming specter of public backlash against potential AI misuses.