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.
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.
Citing the labour market as an example, it added that while AI may generate huge economic value, it can also destabilise workers. The company has already committed $200 million to study and address this issue; however, bolder approaches may be needed given the pace of AI's progress.
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."
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."
Anthropic informed investors that it generated $16.8 billion in third-quarter revenue as it prepares for an IPO reportedly scheduled for November, according to CNBC.
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 of the 261 pages 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.”
Swati Gandhi
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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