NEW YORK (Azat TV) – As they steam toward massive public offerings on Wall Street, the companies at the forefront of artificial intelligence have begun sketching plans to share their wealth with the public — a commitment they say is imperative to address disruptions the technology could bring to the workforce and people’s livelihoods. Executives at The Associated Press report that Anthropic and OpenAI are outlining a range of proposals for distributing AI fortunes, though they have not resolved key questions over how they would work, how transparent they will be, and who will determine beneficiaries.
On Sunday, Anthropic said it would commit 5% of its shares to the Anthropic Public Benefit Fund, a new entity within the company, pending approval from stockholders. The stake could increase as the company grows in the future. The San Francisco-based maker of the AI assistant Claude shared little information about the types of organizations supported by the fund and the issues they will address. One area it will not support, Anthropic said, is lobbying and political giving.
Phil Buchanan, the president of The Center for Effective Philanthropy, said he welcomed Anthropic’s commitment, especially at a time when some billionaires are diminishing the importance of philanthropy. But he cautioned that Anthropic should avoid the arrogance of previous technology barons who assumed their professional expertise would translate to philanthropic wisdom. Buchanan recommended the fund support highly effective, existing nonprofits but noted that it is hard to talk about specifics because the framework remains abstract.
Valuation Milestones and Wall Street Expectations
Anthropic, which was valued at close to $1 trillion earlier this year, is preparing for an initial public offering as soon as next month that is shaping up as one of the biggest ever. Once a company is public, donations might be made through the selling of future shares, or potentially turning to cash dividends, explained Jay R. Ritter, director of The IPO Initiative at the University of Florida’s Warrington College of Business. Ritter noted that the announcement now is helpful for potential investors to know what they are buying.
Anthropic has already committed $200 million to study the economic effects of AI more broadly. Combined with Sunday’s announcement, Anthropic said roughly 20% of its shares will be dedicated to the public good, plus any additional percentage that could be added if the company’s valuation reaches certain milestones. In announcing the benefit fund, Anthropic offered labor market impacts as one example of its philanthropic focus, stating in a blog post that AI may generate enormous economic value while causing instability for workers.
In a May interview, Anthropic president Daniela Amodei said she expected the company’s success would generally lead to more philanthropic support for disease research and ensuring that everyone around the world gets to share in the prosperity that AI creates. The companies’ pledges have nevertheless met with skepticism from some critics.
Structural Choices and Regulatory Gray Areas
Anthropic and OpenAI are each structured as a public benefit corporation, a legal designation that requires companies to pursue not just profit but a social good. OpenAI Foundation, the nonprofit that controls OpenAI, promised to build out its grantmaking capacity earlier this year with a $1 billion commitment. Separately, OpenAI in April proposed the creation of a Public Wealth Fund with a stake in AI-driven economic growth across companies more broadly. That fund could be invested in a handful of assets, OpenAI noted, with returns distributed directly to people regardless of whether they are invested in financial markets. OpenAI is planning its own initial public offering next year, and CEO Sam Altman has spoken to lawmakers about sharing equity in AI companies with the public.
During the personal computer boom, figures like Michael Dell and Bill Gates started private foundations to manage their philanthropy. Today, Silicon Valley leaders including Meta CEO Mark Zuckerberg have turned instead to limited-liability companies, the structure that Anthropic is pursuing for its public benefit fund. Experts note this offers more control for its owners. An LLC is not bound by the same spending rules as a foundation, which is required to distribute at least 5% of the value of its endowment.
Katherina Rosqueta, the founding executive director of the University of Pennsylvania’s Center for High Impact Philanthropy, said LLCs provide a lot more flexibility and latitude in how resources are utilized. Brian Mittendorf, the chair in accounting at Ohio State University, added that LLCs allow for activity outside traditional philanthropy, such as payouts to individuals that would not be possible through a 501(c)(3) charity. However, if they are not making traditional charitable gifts, that puts the companies in a gray area by raising questions about how the public is actually benefiting.