Musk, Anthropic outline duelling approaches to AI-era philanthropy
BENGALURU (Oct 19): Anthropic and Elon Musk have presented very different plans for sharing some of the wealth created by the AI boom. Their different approaches could shape how the financial gains from AI reach the public.
The company behind Claude AI models said over the weekend that it would set aside 5% of its shares for a new fund aimed at helping the public. Musk, meanwhile, promised on Monday to give one SpaceX share to every child in America. He said directly giving shares to people was the right approach as the fast-growing industry faces increasing public scrutiny.
Security breaches involving AI systems and warnings from industry leaders that uncontrolled AI development could create serious risks, even threaten humanity's future, have increased concerns about AI safety. Fears about job losses have also added to public anxiety.
Anthropic plans to share its wealth through donations to nonprofit groups and direct payments to specific groups of people. Musk, the world's richest person with a net worth of nearly US$1 trillion, has said he recommends giving shares directly to the public.
"Next year, I will give one of my SpaceX shares to every kid in America. This will be the first of many," Musk, who runs Anthropic rival SpaceXSI, said in a post early on Monday. He owned about 6.42 billion shares in the company as of June.
SpaceX shares closed about 1% higher on Monday.
Anthropic said its plan would give it more freedom and the ability to make larger donations to benefit humanity. The company plans one of the biggest stock market listings in history. It is structured as a public benefit corporation, a legal type of company that requires its leaders to balance the public interest with the goal of making profits.
The stock market listing could value Anthropic at about US$2 trillion. However, Reuters exclusively reported last week that some investors were considering a lower value of around US$1.5 trillion. At that value, a 5% shareholding for the fund would be worth between US$75 billion and US$100 billion.
This would be far more valuable than Musk's planned share giveaway, which would be worth about US$11 billion at current share prices. This estimate is based on US census figures showing that America has 72 million children.
"Giving shares, which are stakes in the future economy, directly to the people is the way," Musk said.
Musk's announcement comes months after the White House introduced "Trump Accounts," an investment programme designed to support children from birth to adulthood. Under the programme, US citizens born between 2025 and 2028 will receive investment accounts funded by the government with US$1,000. Families can add more money to these accounts.
Individuals and companies can also donate shares to these accounts. Several major US companies, including Dell, Visa, Micron and Delta Air Lines, have already promised to support the programme by matching contributions from employers or providing extra funding.
"A BIG THANK YOU to our legendary friend, Elon Musk, for his incredible generosity in giving SpaceX Stock to millions of American children through TRUMP ACCOUNTS!," President Donald Trump said in a post on the social media platform Truth Social.
SpaceX did not immediately respond to a request for comment on whether Musk's share donations would be linked to Trump Accounts or whether there would be any restrictions on when the shares could be sold.
Earlier this year, SpaceX President Gwynne Shotwell and her husband promised to give some of their SpaceX shares to each of more than two million children through the Trump programme.
"That's a lot of shares... I'm sure somebody will be happy to take them," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. He does not hold SpaceX shares in the portfolios he manages.
"It feels like a publicity stunt... Will it create positive public sentiment? Perhaps."
Michael Dell and his wife, Susan, have promised US$6.25 billion in cash for Trump Accounts, with the money specifically intended for children from less wealthy families. By contrast, the value of Musk's donation will depend on how SpaceX shares perform, as their price can change sharply.
Most of Musk's charitable work has been carried out through the Musk Foundation, which reportedly holds more than US$14 billion in assets.
Warren Buffett, the retired chairman of Berkshire Hathaway and one of the best-known figures in philanthropy, has reportedly given away US$60 billion so far. Most of the rest of his roughly US$150 billion fortune is also expected to go to charity. The Bill & Melinda Gates Foundation has distributed more than US$100 billion since it was founded in 2000, with some of that money coming from Buffett's donations.
Impact on jobs highlighted
Anthropic has presented itself as an AI research company that puts safety first. It has warned that AI could create "catastrophic or existential risks to humanity."
In a blog post, the company said its Public Benefit Fund could support projects such as direct payments to specific groups of people and efforts to deal with AI's effects on jobs. These plans would build on an earlier promise to spend US$200 million studying and addressing disruption to the labour market.
The proposed fund would be set up as a limited liability company fully owned by Anthropic. At the board's discretion, it would receive another 2% of Anthropic's shares each time the company's value rises by 50% above a starting value that has not yet been disclosed.
Companies around the world have cut thousands of jobs after investing heavily in AI. Many of them, especially technology companies, have pointed to greater efficiency from the rapid adoption of the technology as a reason for the cuts.
No political donations
The AI company said its fund would not use any of its shares for lobbying or political donations in the United States or other countries.
US lawmakers are considering stronger oversight of AI, while companies are increasing their efforts to influence how the technology is regulated.
Anthropic's co-founders have also promised to donate 80% of their shares, and the company has a programme that matches employees' charitable donations. Together, these commitments mean that about 20% of Anthropic's shares will be set aside for public benefit, not counting any additional shares the fund may receive later.
Anthropic said it would provide more details soon about how the fund would be managed, how it would be structured and what increases in the company's value could lead to it receiving more shares.
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