Elon Musk promises to give every child in the U.S. shares of SpaceX worth up to $10.7 billion next year

Elon Musk announced that next year he will give every child in the U.S. a share of SpaceX, with the potential value of this proposal reaching $10.7 billion, as artificial intelligence companies face increasing social impact pressures. He stated on the X platform on Monday: "Next year, I will give a share of SpaceX to every child in America. This will be the first of many giveaways." According to data from the U.S. Census Bureau, this proposal would allow approximately 73 million Americans under the age of 18 to directly hold shares in the aerospace and AI company.

However, Musk has not yet explained the specific distribution method or confirmed which children will be eligible.

The giveaway from SpaceX could reach $10.7 billion. SpaceX began trading publicly in June, setting the record for the largest initial public offering in history. At Friday's market close, its shares were trading at approximately US$146 (about HK$1,139). At this price, distributing one share to every person under 18 nationwide would make Musk's proposed giveaway potentially worth around $10.7 billion. The plan still lacks specific details. Musk did not clarify how eligible children would receive these shares, whether parents or guardians would manage them, or if there would be restrictions on selling or transferring the stock.

Potential Impact of the Giveaway

This proposal could provide millions of young Americans with early access to the stock market. However, its final cost and scope will depend on eligibility rules and the total number of shares distributed.

The U.S. federal investment plan has already targeted children. Providing children with financial shares in the market is part of an independent initiative in the U.S. Earlier this month, the Treasury automatically registered millions of individuals under 18 to participate in the Trump account, a new federal savings and investment plan. Under this plan, children born from early 2025 to the end of 2028 are eligible for a one-time government contribution of US$1,000 (about HK$7,800). The plan aims to establish investment accounts for young Americans early on. The tech giant's proposal would directly give company shares to children in a different manner, although the operational details of the plan have not been disclosed.

Neither proposal has yet determined the specific amount that individual recipients may ultimately receive, as the investment value may rise or fall over time.

Challenges Facing Tech Companies

Musk announced his plan after Anthropic announced on Sunday that it would commit at least 5% of its shares to a new "public interest fund." Based on the latest valuation of the private company, this commitment is worth approximately $48 billion. According to Anthropic's website, the fund may make "large donations" to nonprofit organizations or provide "direct distributions to specific groups." The company stated that this funding could help address the impact of artificial intelligence on employment. In response, Musk remarked, "I suggest directly giving shares to the public... that is exactly what I am going to do."

As tech companies face increasing criticism regarding the safety of artificial intelligence, potential unemployment, and the environmental costs of expanding data center infrastructure, these competing proposals have emerged. Anthropic itself has also warned of the "existential risks to humanity" posed by artificial intelligence, reflecting concerns about the long-term consequences of the technology. The rapid expansion of AI infrastructure has also raised questions about power demands and the resources needed to operate large data centers. Musk's commitment and Anthropic's fund offer different methods for distributing corporate wealth amid these issues.

Whether SpaceX will implement this proposed giveaway will depend on specific details that Musk has yet to disclose.

Social Implications and Challenges of Musk's Proposal

Elon Musk's proposal is not only a financial education initiative for the younger generation but also a response to current social issues. With the rapid development of artificial intelligence technology, societal concerns about its impact are growing. Musk's plan could spark greater interest in the stock market and promote financial literacy. However, the specific implementation details of the giveaway remain unclear, which could affect its actual effectiveness. Additionally, how tech companies balance profitability with social responsibility and environmental impact in the face of criticism will be an important issue in the future.