Anthropic Plans Wholly Owned Public Benefit Fund to Address AI Job Losses; Musk Proposes Direct Share Distribution

US artificial intelligence company Anthropic has announced plans to allocate 5% of its shares to a new "Anthropic Public Benefit Fund." The fund will operate as a wholly owned limited liability company (LLC) subsidiary of Anthropic, rather than a traditional tax-exempt nonprofit organization. This structural design allows Anthropic to retain control over capital distribution ahead of its upcoming initial public offering (IPO).

According to the announcement, the fund's primary focus is addressing potential disruptions in the job market caused by rapidly advancing AI systems. Anthropic CEO Dario Amodei has repeatedly warned about the socio-economic upheaval from fast-moving AI, and the company has already committed $200 million to research labor market effects. The new fund will consider making direct payouts to "certain populations," a more aggressive approach than traditional charities that only donate to nonprofits. Additionally, for every 50% rise in the company's valuation above a set baseline, the fund may receive another 2% of shares, though this remains at the board's discretion.

This "company-controlled" model contrasts sharply with competitor OpenAI. Following its restructuring, OpenAI's nonprofit foundation holds a 26% stake in the commercial entity and retains board appointment power, although this authority was challenged during Sam Altman's brief firing in 2023. Anthropic's choice of an LLC structure implies weaker external oversight but greater flexibility. The move is seen as a strategy to mitigate political and public pressure by demonstrating social responsibility as Anthropic paves the way for a potential IPO raising up to $100 billion at a valuation of around $2 trillion.