SEC scrutiny of pre-IPO SPVs lands on the AI names driving the private-market boom

According to a report by the Wall Street Journal (WSJ) on Monday, the US Securities and Exchange Commission (SEC) wants investment companies to provide proof that their products actually contain the private stock they claim to offer.

In a private market dominated by popular AI companies like OpenAI and Anthropic—and where some forms of investment are traded in the form of blockchain tokens—the inquiry prompts the one question that investors are most concerned about: is the promised investment really there?

According to Reuters, which refers to the WSJ’s article, the SEC has asked registered investment advisers to prove that the special purpose vehicles (SPVs) under their jurisdiction actually have ownership and/or some exposure to the shares they promote. Reuters stated that it was unable to get any verification of the news from its side. The reported SEC inspection does not relate to any particular firm.

Why the SPV question hits AI hardest

SPVs gather funds from investors to take positions in various private companies making it possible for outside investors to invest in companies that are not available on the open market. In recent times, SPVs have appeared to be an attractive option for investing in the artificial intelligence boom.