Anthropic Commits 5% Of Its Shares For Public Benefit, Elon Musk Says 'Give All Shares To The Public'

Anthropic said that it plans to commit 5 percent of its shares to a new Anthropic Public Benefit Fund, with the stake able to grow as the company's valuation rises. Elon Musk responded on X within hours, saying he recommends giving the shares straight to the public instead.

What Anthropic announced

The initial 5 percent commitment is subject to stockholder approval, according to CNBC. The board could also add 2 percent for every 50 percent rise in Anthropic's value above a baseline that hasn't been disclosed. Anthropic said it will share more in the coming months on the fund's governance, structure and valuation thresholds, and will publish a public benefit report on progress.

How the public fund would work

The fund will be a wholly owned limited liability company, not a 501(c)(3) nonprofit. Anthropic says this gives it more flexibility in how it supports the public good. The fund could make large donations to existing nonprofits or give money directly to specific groups of people. Equity held by the fund will not be used for lobbying or political giving. Anthropic compared the escalating structure to executive pay awards and said it is "instead directing that equity to the public benefit."

Elon Musk's reaction

Musk, who runs rival AI company xAI, replied to Anthropic's post. "I recommend giving the shares directly to the public," he wrote, and added, "This is what I will be doing."

Questions from investors

Not everyone welcomed the plan. Vijar Kohli, CEO of Golden Door, wrote on X that 'Anthropic is pre-emptively diluting voting rights,' arguing the arrangement could complicate the company's IPO and give influence to whoever runs the fund. That is his reading, and Anthropic has not yet detailed the fund's governance.

The jobs motive

Anthropic says AI could create large economic value but could also hurt workers. It has already committed $200 million to studying and addressing the effects on the labour market, and says much of its public benefit work, including AI safety, interpretability and biomedical research, will continue inside the company.

Earlier pledges

The fund builds on earlier commitments. Anthropic's co-founders pledged to donate 80 percent of their equity, and the company matches employees' equity donations, with around half of staff taking part. Including the new commitment, Anthropic estimates roughly 20 percent of its shares will be dedicated to the public good.