On October 19, reports emerged that Anthropic announced the allocation of 5% of its shares to a newly established "Public Benefit Fund." Elon Musk, CEO of SpaceX and Elon Musk responded on the X platform. According to reports from Financial Associated Press, Musk's statement was succinct: "I suggest directly distributing the shares to the public." This remark pointed directly to the core controversy of the Anthropic plan: an AI company preparing for an initial public offering is allocating shares worth tens of billions of dollars to a fund controlled by the company itself, rather than distributing them directly to the public.
Anthropic announced this plan on October 18 local time. According to the company's statement, after shareholder approval, Anthropic will immediately allocate 5% of its shares to the newly established "Anthropic Public Benefit Fund." Subsequently, if the company's valuation increases by 50% compared to an undisclosed baseline, the board may decide to allocate an additional 2% of shares. The fund is established as a wholly-owned limited liability company (LLC), rather than a traditional 501(c)(3) tax-exempt nonprofit organization.
Anthropic explained that this structure allows for flexibility in donating to nonprofit organizations, distributing funds directly to specific groups, and funding "bolder initiatives."
The establishment of the Anthropic Public Benefit Fund will change the company's equity structure
Based on the valuation of $965 billion reached during Anthropic's $65 billion financing in May 2026, the initial 5% of shares is valued at approximately $48 billion. Combined with the 80% of personal equity pledged by co-founders and the employee equity donation matching program, approximately 20% of Anthropic's shares are directed towards public benefit purposes. This debate arises as Anthropic moves forward in a critical window for its IPO. According to multiple media reports, Anthropic plans to initiate its IPO as early as November, targeting a valuation between $1.5 trillion and $2 trillion.
Locking a substantial amount of shares into a public benefit fund on the eve of an IPO serves as an institutional response to external concerns about the societal impact of AI, while also objectively adjusting the company's equity structure.