5% of shares to a new fund
Anthropic announced on Oct. 18 (Oct. 19 Japan time) that it will contribute 5% of its shares to a newly created "Anthropic Public Benefit Fund." The fund will take the form of a limited liability company (LLC) wholly funded by the company and will not be a nonprofit for tax purposes. The company explained that this structure allows uses other than donations. The contribution requires shareholder approval.
For every 50% increase in the company's valuation from a set level, the board can add shares equal to 2% at its discretion. However, the company has not disclosed the baseline valuation or the calculation method, and additions are not automatic even when the level is reached. Anthropic said its co-founders have pledged to donate 80% of their own holdings and about half of its employees participate in a stock donation program with a company match, and that together about 20% of its shares will be directed to the public benefit.
Direct distributions to specific groups, in addition to donations
Besides large donations to established nonprofits, the fund's money may also be used to give money directly to specific groups. The company cites the impact of AI on employment as one of its concerns. However, it has not announced the eligibility criteria for recipients, how to apply, the amounts or when distributions will begin. It said it will lay out the governance structure in the coming months.
The company said the fund's shares will not be used for lobbying or political donations in the United States or abroad. Anthropic's board will decide where the money goes and in what amounts. U.S.-based Yahoo Finance reported criticism that a company-controlled fund will direct money to areas that benefit the company. U.S. entrepreneur Elon Musk and David Sacks, who handled AI policy at the White House, also oppose the arrangement.
Contributed before the IPO, valued at no less than $50 billion by one estimate
Anthropic is aiming to go public in November, and the 5% will be carved out before trading in the shares begins. According to U.S. media estimates reported by Yahoo Finance, the contributed shares are worth at least $50 billion, and would be worth close to $100 billion if the company's valuation at listing reaches $2 trillion. The IPO prospectus does not yet describe the fund or its governance terms.
| Estimate | Value of the 5% |
|---|---|
| Lower bound | At least $50 billion |
| If valuation at listing is $2 trillion | Close to $100 billion |
Limited say for shareholders after listing
Anthropic is a "public benefit corporation," whose charter commits it to balancing business and the public benefit. An independent "Long-Term Benefit Trust," which oversees AI safety, selects some of the board members. Investors who buy shares after the listing will gain economic benefits but have limited say in management, Yahoo Finance noted.
In July, the company also launched the "Economic Futures Research Fund," which provides $200 million for research on AI's impact on the economy. That program targets universities and research institutions and is separate from the new fund.
