Anthropic puts 5% of its shares into public benefit fund
What's the story
Anthropic, a leading artificial intelligence (AI) company, will allocate 5% of its shares to a new public benefit fund. The move is subject to stockholder approval and could see the stake increase as the company's valuation rises. The fund could be used for nonprofit donations, direct distributions or programs addressing AI's impact on workers.
Growth potential
Fund to explore 'bolder approaches' to address AI's impact
The fund would initially receive 5% of Anthropic's shares, with the board potentially adding another 2% for every 50% increase in the company's value above an undisclosed baseline.
Anthropic has already committed $200 million to study the effects of AI. However, the company believes that "given the pace of AI progress, bolder approaches may be needed."
The fund will be set up as a wholly-owned limited liability company (LLC) instead of a 501(c)(3) tax-exempt nonprofit or other format.
Non-political stance
Fund won't be used for lobbying or political giving
Anthropic has made it clear that the equity held by the LLC will not be used for lobbying or political giving in the US or abroad.
The company also told investors its third-quarter revenue stands at $16.8 billion, ahead of its planned initial public offering (IPO) reportedly slated for November.
This announcement comes as a strategic move to prepare for the IPO and improve public perception amid growing scrutiny of AI's impact on jobs.
Future plans
Musk suggests giving shares directly to the public instead
Anthropic has promised to provide more information about the fund's structure and governance in the coming months. This will include valuation milestones that could increase the stake.
The company also plans to report on its progress with the fund in an upcoming public benefit report.
Tesla and SpaceX CEO Elon Musk has suggested that instead of establishing a public benefit fund, Anthropic should directly give shares to the public.