Musk, Anthropic outline dueling approaches to AI-era philanthropy
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 this technology reach the public.
The company behind the Claude AI models said over the weekend that it would put 5 percent of its shares into a new fund to support the “public good.” This is an unusually large commitment. On Monday, Musk promised to give one SpaceX share to “every kid in America.” He argued that shares should go directly to people as the fast-growing industry faces increasing public attention and criticism.
Security breaches involving AI systems and warnings from industry leaders that uncontrolled AI development could cause serious, even existential, harm 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 certain groups of people. Musk, the world's richest person with a fortune of nearly US$1 trillion (HK$7.8 trillion), has said he believes the better approach is to “give the 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 competitor xAI, said in a post early Monday. As of June, he owned about 6.42 billion shares in SpaceX.
SpaceX shares ended Monday's trading about 1 percent higher.
Anthropic said its plan would give it more freedom and allow it to make larger donations to benefit humanity. The company plans one of the biggest stock market listings in history. It intends to list as a public benefit corporation, a type of company that must balance the public interest with making a profit.
The stock market listing could value Anthropic at about US$2 trillion. However, Reuters reported exclusively last week that some investors were considering a lower value of around US$1.5 trillion. At that valuation, a 5 percent stake for the fund would be worth between US$75 billion and US$100 billion.
This would be far more than the possible value of Musk's share giveaway, which would be worth about US$11 billion at current share prices. This estimate is based on US census figures showing that there are 72 million children in America.
“Giving shares, which are stakes in the future economy, directly to the people is the way,” Musk said.
Musk's plan comes months after the White House introduced “Trump Accounts,” an investment program designed to help children build savings from birth to adulthood. Under the program, US citizens born between 2025 and 2028 will receive an investment account funded by the government with US$1,000. Families can add more money to these accounts.
Individuals and companies can also donate company shares to the accounts. Several major US companies, including Dell, Visa, Micron and Delta Air Lines, have already promised to support the program through matching contributions from employers or other 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 wrote on the social media platform Truth Social.
SpaceX did not immediately answer a question about whether Musk's share donations would be connected to Trump Accounts or whether the shares would have a lockup period, during which they could not be sold.
Earlier this year, SpaceX President Gwynne Shotwell and her husband promised to give a share of their SpaceX stock to each of more than 2 million children through the Trump program.
“That’s a lot of shares... I’m sure somebody will be happy to take them,” said Robert Pavlik, a senior portfolio manager at Dakota Wealth Management. Pavlik 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 a focus on children from disadvantaged backgrounds. By contrast, the value of Musk's gift will depend on how SpaceX shares perform, as their prices can change sharply.
Most of Musk's charitable work has been done through the Musk Foundation, which reportedly holds more than US$14 billion in assets.
Warren Buffett, the former 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 charitable causes. The Bill & Melinda Gates Foundation has given out more than US$100 billion since it was founded in 2000. Some of that money came from donations by Buffett.
LABOR MARKET IMPACT CITED
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 and efforts to deal with AI's effects on jobs and workers. These plans would build on an earlier promise to spend US$200 million studying and addressing changes to the labor market caused by AI.
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 percent of Anthropic's shares each time the company's value rises by 50 percent above a starting value that has not yet been announced.
Companies around the world have cut thousands of jobs after making large investments in AI. Many of them, especially technology companies, say the technology is helping them work more efficiently.
NOT FOR POLITICAL GIVING
Anthropic said that none of the shares owned by its fund would be used to pay for lobbying or political donations in the United States or other countries.
US lawmakers are considering stronger rules for AI, while companies are increasing their efforts to influence how the technology will be regulated.
When combined with a promise by Anthropic's co-founders to donate 80 percent of their shares and a program that matches employee donations, about 20 percent of Anthropic's shares will be set aside for public benefit. This figure does not include any extra shares the fund may receive in the future.
Anthropic said it would soon provide more details about how the fund would be managed, how it would be organized and what increases in the company's value could allow it to receive more shares.
Reuters