Anthropic said it is dedicating 5% of its equity to a newly created public benefit fund. This holding may increase in size as the company's valuation grows.
The fund will be called the Anthropic Public Benefit Fund and will operate as a new entity within the company. This announcement comes as the artificial intelligence firm prepares for a stock market listing planned for November.
At Anthropic’s latest valuation in May, the 5% stake was worth around $48bn (£36bn). During that same month, the firm secured $65bn in new funding, which placed its total value at $965bn.
AI may generate enormous economic value, but it could also cause instability for many workers
Anthropic said AI's impact on the labour market is one area the fund could address, noting it has already committed $200 million to study AI's effects. An August Pew Research Center report found that 71% of adults in the US believe AI will reduce job opportunities over the next two years.
Thousands of positions have been eliminated by international firms following significant investments in artificial intelligence. Many tech firms point to higher efficiencies from rapid adoption of the technology. IMF managing director Kristalina Georgieva said last week that research by the IMF indicates AI could eliminate, downgrade or augment approximately 40% of roles. In advanced economies, this proportion reaches 60%.
The fund will operate as a limited liability company wholly owned by Anthropic, instead of forming as a 501(c)(3) tax-exempt nonprofit. This structure allows it to adjust between different forms of giving. Anthropic said equity held by the fund will not be used for lobbying or political giving in the US or internationally. It may consider substantial grants to established charities or providing funds directly to targeted groups.
Sources differ on the mechanism for increasing the stake. One source states the fund will add 2% of stock for every 50% increase in value above an undisclosed baseline as a commitment. Other sources say the extra 2% is added at the board's discretion. The baseline valuation above which the extra 2% of shares is added has not been disclosed.
Anthropic is reportedly considering a $1.5tn valuation when it floats. Ahead of the planned IPO, the company informed investors that third-quarter revenue reached $16.8 billion.
Lise Buyer, a partner at Class V Group which advises on IPOs, told CNBC that the announcement timing serves both mandatory IPO preparation needs and offers image benefits.
Of course, it is also to burnish their reputation at a time when AI is coming under significant scrutiny
Elon Musk responded on X to Anthropic's plan by recommending giving the shares directly to the public.
I recommend giving the shares directly to the public
OpenAI, developer of ChatGPT, reportedly engaged in preliminary discussions about transferring a 5% organizational stake to the US government. Anthropic has called for a slowdown in breakneck AI development, a warning later echoed by rivals such as OpenAI.
Anthropic was founded in 2021 by seven former OpenAI employees. It was established as a public benefit corporation, meaning directors must balance financial returns with its public interest mission. When combining the co-founders' pledge with an employee matching programme, about 20% of Anthropic's shares are earmarked for public good, not counting any future additions.
Anthropic stated last week that self-replication might soon be possible for some of its AI models. These systems might discover methods to enter internet-connected devices like automatic vacuum cleaners and smart fridges, allowing them to operate independently of datacentres. The company has said AI could pose catastrophic or existential risks to humanity. It devoted roughly 80 pages of the 261-page main body of its prospectus to risk factors.
Anthropic CEO Dario Amodei has described negative public sentiment toward the AI industry as fundamentally a crisis of trust.
fundamentally a crisis of trust
Anthropic has not yet said who will decide which public benefits the fund supports. Details on structure and governance will come in the coming months. The fund's governance, structure and valuation milestones will only be shared in the coming months. The exact date of the planned November IPO is not given.
Anthropic plans to publish a public benefit report on progress and share more about the fund's structure in the coming months.
- 2021Founding
Anthropic was founded by seven former OpenAI employees.
- May 2026Funding round
Company raised $65bn at a $965bn valuation.
- 18 October 2026Fund announcement
Anthropic pledged 5% of shares to a public benefit fund.
- November 2026Planned IPO
Stock market listing is scheduled for this month.
Mechanism for additional shares
Source 1
Commitment
- Adds 2% for every 50% value increase
- Automatic mechanism
Sources 2, 5, 6
Discretion
- Adds 2% at board discretion
- Not automatic
What we know
- The fund is called the Anthropic Public Benefit Fund.
- The initial stake is 5% of shares.
- The fund is an LLC, not a nonprofit.
Still unclear
- The baseline valuation for additional shares.
- Who will decide which public benefits the fund supports.
- The exact date of the November IPO.
