Anthropic to dedicate 5% of shares to new public benefit fund

AI company Anthropic plans to allocate 5% of its shares to a public benefit fund. This aims to fund initiatives addressing AI's impact on employment and society, with provisions for the stake to grow as the company's valuation increases.

Artificial intelligence company Anthropic has announced plans to allocate 5 per cent of its shares to a newly established public benefit fund, with provisions to increase the stake as the company's valuation grows. The proposed allocation, subject to shareholder approval, is aimed at funding public-benefit initiatives, including efforts to address the impact of artificial intelligence on employment and society.

Valuation-Linked Growth Structure

In an official announcement, Anthropic said, "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." The valuation-linked structure means the fund's stake could increase as Anthropic grows, although further allocations will depend on the company's board.

Expanding Public Benefit Initiatives

Anthropic said the new fund would give it greater flexibility to support initiatives beyond its existing AI safety research, biomedical research and discounts offered to non-profit and scientific institutions. "The Anthropic Public Benefit Fund will have increased flexibility and scale, enabling us to pursue our mission in new ways: for example, we might explore large donations to traditional non-profits or direct distributions to specific populations," the company stated.

Addressing AI's Impact on Labour

The announcement comes amid growing concerns about the potential impact of artificial intelligence on jobs and labour markets. Highlighting these risks, Anthropic said, "AI may generate enormous economic value, but it could also cause instability for many workers." The company has already committed USD 200 million towards studying and addressing AI-related labour market disruptions. The new fund could support larger initiatives in this area.

Total Commitment to Public Good

Anthropic also disclosed that, when combined with earlier commitments made by its founders and employees, approximately 20 per cent of its shares would be dedicated to public-benefit purposes. "When combined with today’s announcement, roughly 20% of Anthropic shares will be dedicated to the public good, plus any additional percentage that could be added if the company reaches specific valuation milestones," it said.

Fund Governance and Future Plans

The fund will operate as a wholly owned limited liability company (LLC), allowing flexibility in how resources are distributed. Anthropic clarified that equity held by the fund would not be used for lobbying or political contributions. The company said further details about the fund's governance and valuation milestones would be disclosed in the coming months. (ANI)

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