Anthropic commits 5% of shares to new public benefit fund that could address AI job disruption
The Claude maker said that establishing the fund as an LLC will provide greater flexibility in how the money is used.
Key points
- Anthropic plans to commit 5% of its shares to a new public benefit fund, subject to shareholder approval.
- The board could add 2% more for every 50% rise in company value above an undisclosed baseline.
- Anthropic told investors third-quarter revenue is $16.8 billion ahead of a reported November IPO.
Anthropic said Sunday it plans to commit 5% of its shares to a new public benefit fund, with the stake potentially growing as the company's valuation rises. The commitment is subject to shareholder approval.
The fund could be used to explore large donations, including to traditional nonprofits or as direct distributions to specific populations, or for what the company called bolder approaches to study and address AI's disruption and displacement of jobs.
How the fund would work
Under the plan, the fund would immediately commit 5% of Anthropic's shares. The board could add, at its discretion, an additional 2% for every 50% increase in the company's value above a baseline that has not been disclosed.
The fund will be set up as a wholly owned limited liability company rather than a 501(c)(3) tax-exempt nonprofit or another format, to allow adjustment between different forms of giving. Anthropic said equity held by the LLC will not be used for lobbying or political giving in the U.S. or internationally.
Of course, it is also to burnish their reputation at a time when AI is coming under significant scrutiny
— Lise Buyer
IPO timing and reaction
Anthropic told investors its third-quarter revenue stands at $16.8 billion ahead of a planned initial public offering reportedly slated for November, CNBC reported. Lise Buyer, partner at IPO advisory firm Class V Group, told CNBC the timing is both mandatory to prepare for an IPO and beneficial for the company's image as AI reshapes the jobs market.
An August Pew Research Center report found that 71% of adults think AI will lead to fewer jobs in the U.S. over the next two years. In response to the announcement, Tesla and SpaceX CEO Elon Musk said on X that he "recommend[s] giving the shares directly to the public."
