Anthropic pledges 5% of shares to public benefit fund

Anthropic said on Sunday, October 18, that it will put 5% of its shares into a new entity, the Anthropic Public Benefit Fund, subject to stockholder approval. The fund's stake is built to grow as the company's value rises (Anthropic; Reuters). Based on the company's most recent valuation in May, a 5% stake is worth about $48 billion.anthropic.com+2

The Claude developer announced the pledge while preparing for a closely watched initial public offering. The move sets aside part of its equity value for social programs rather than for shareholder returns.reuters.com

How the fund works

Under the plan, the board may add 2% more of the company's shares for every 50% increase in Anthropic's value above a set baseline. The company said it is common for tech firms to give executives compensation awards that grow over time. "We are instead directing that equity to the public benefit," it wrote.anthropic.com

The fund will be a wholly owned LLC rather than a 501(c)(3) charity. Anthropic said this gives it room to switch between different forms of giving, and that none of the fund's Anthropic equity will be used for lobbying or political donations, in the US or abroad. The company said the fund could make large donations to traditional nonprofits or give money directly to specific groups of people.businessinsider.com+1

Anthropic named AI's effect on jobs as one example. It said it has already committed $200 million to studying and addressing the issue, but "given the pace of AI progress, bolder approaches may be needed".anthropic.com

Adding to earlier pledges

The fund builds on earlier commitments. When the company was founded, Anthropic's co-founders pledged to donate 80% of their equity. The company also runs an equity donation match program, which about half of its employees use. Together with Sunday's announcement, Anthropic said about 20% of its shares will be dedicated to the public good, plus any extra stake added if valuation milestones are reached. In 2025, rival OpenAI set up a nonprofit foundation that holds a multibillion-dollar stake in that company.businessinsider.com+1

Timing before the IPO

The announcement comes weeks before Anthropic's planned November listing. On October 15, Reuters reported that some current and prospective investors were discussing a valuation of about $1.5 trillion, below earlier expectations of about $2 trillion. Seeking Alpha noted that the fund's financial impact on investors will depend on the company's final valuation, how much the fund spends and how the equity is structured.finance.yahoo.com+1

Anthropic said it will share more about the fund's structure and governance, including the valuation milestones that could add to its stake, in the coming months.anthropic.com