> We recommend investors avoid this IPO based on the company’s: warning, in its own prospectus, that is poses “a catastrophic or existential risk to humanity”,
In general? It wouldn't. But there already exist ETFs that include/exclude companies or entire sectors based on some ESG/SRI criteria. So, there are investors who care about such concerns.
Why would this matter for an investor?
If AI destroy the world who would make them accountable? If not, then the risk is fictional and doesn't matter.