Ahead of IPO, AI firm Anthropic announces a new 'public benefit fund ' to commit 5% of its stocks: What we know

Artificial intelligence (AI) firm Anthropic on Sunday (local time) announced that it will commit roughly five per cent of its shares to a new "public benefit" fund, whose value could rise alongside the company's share price.

Anthropic Public Benefit Fund: What we know

The shares will go to the "Anthropic Public Benefit Fund", a new entity within the company, the AI firm announced in a blog post. Anthropic added, "Today, we're committing a portion of Anthropic's shares to the Anthropic Public Benefit Fund, a new entity with a structure that increases the stake as the company grows. Subject to stockholder approval, 5% of Anthropic's shares will be committed today, with an additional 2% added at the board's discretion for every 50% increase in the company's value above a set baseline."

It also said the Anthropic Public Benefit Fund will have greater flexibility and scale, allowing the AI firm to pursue its mission through new approaches, including substantial donations to traditional nonprofits or direct payments to selected groups.

An

Citing the labour market as an example, it added that while AI may generate huge economic value, it can also destabilize workers. The company has already committed $200 million to study and address this issue; however, bolder approaches may be needed, given the pace at which AI is progressing.

The AI firm's co-founders have pledged to give away 80% of their wealth. Roughly half of the company's employees participate in a programme that allows them to pledge shares, with the company matching their contributions. Including the 18 October commitment, Anthropic said roughly 20% of its shares would be earmarked for the "public good."

Elon Musk responds to Anthropic's announcement

Following Anthropic's announcement, billionaire Elon Musk, who runs Anthropic rival xAI, said on X that he recommended "giving the shares directly to the public." He added, "This is what I will be doing."

The announcement comes as the AI firm plans what could be one of the biggest IPOs in history. The company, which has positioned itself as a safety-first AI lab, highlighted the risks that AI could pose, including "catastrophic or existential risks to humanity." In its prospectus to investors, Anthropic devoted at least 80 pages of the 261-page main body to emphasising risk factors.

On 28 September, Reuters reported that Anthropic's IPO prospectus highlighted potential risks associated with its AI models, including the possibility of "self-preserving behaviours." The company said these could involve attempts to "resist shutdown, conceal or manipulate information" and behaviour "resembling blackmail."