Anthropic needs stockholder approval to commit 5% of itself to a public benefit fund

Anthropic plans to put 5% of its own shares into a new Anthropic Public Benefit Fund, but its stockholders must approve the plan first. As the company becomes more valuable, the fund's share could grow too. In a post published on October 18, Anthropic says the board can choose to add another 2% for every 50% increase in the company's value above a set starting value.

Anthropic has not shared the company's value or the starting value used to measure each 50% increase. Image: Anthropic

The fund will be a limited liability company (LLC) fully owned by Anthropic. It will not be a 501(c)(3) charity or another type of organization. Anthropic says it chose this structure "to give adjustability between different forms of giving". It also rules out one possible use of the shares: "None of the Anthropic equity held by the LLC will be used for lobbying or political giving, in the US or abroad".

The share grows as the company becomes more valuable

"Because of the way the Fund is structured, the more Anthropic grows, the larger the share of the company that can be dedicated expressly to the public good," the post says. Anthropic compares its plan with the way technology companies often give executives bigger pay awards as their companies grow. It calls these rising awards "common practice for tech companies" and adds: "We are instead directing that equity to the public benefit".

Anthropic has not given any dollar amounts for the plan. It has not shared the company's value, the starting value used to measure the 50% increases, the names of the fund's trustees or the people and groups that will receive support. Stockholders must approve the 5% commitment before any shares can be transferred.

The $200 million Anthropic has already promised for research on the labor market is not new money. Image: Anthropic

Earlier promises bring the total to about one-fifth

The 5% that still needs stockholder approval is an addition to Anthropic's earlier promises, not the whole plan. Anthropic says its co-founders promised to donate 80% of the shares they owned when the company was founded. It also says about half of its employees take part in a program that matches the shares they promise to donate.

When these earlier promises are counted with the new commitment, "roughly 20% of Anthropic shares will be dedicated to the public good", the post says. The total could grow further if the company reaches specific targets for its value, allowing more shares to be added.

One possible use of the fund is to make large donations to traditional nonprofit organizations. Image: Anthropic

Harm to the labor market is one example of the problems it may address

Anthropic points to the effects of AI on jobs and the labor market as an example of the problems the fund could help address. It links this goal to the $200 million it has already promised to study and address these effects. This money is not a new commitment. Anthropic says the reason for creating the fund is that "given the pace of AI progress, bolder approaches may be needed".

The fund could be used in several ways. Anthropic mentions "large donations to traditional nonprofits or direct distributions to specific populations". Research into AI safety and how AI systems work, practical biomedical research, and discounts on Claude for nonprofits and scientific institutions will stay inside the company. Anthropic says this work can help the public while also creating value for its for-profit business. Outside researchers have already tested some of its safety measures: two research institutes tested Claude's protections against election-related misuse and found that it refused individual harmful requests but failed to catch a campaign split into separate requests that each seemed harmless.

Anthropic says it will explain the fund's structure, how it will be managed and the company-value targets that could increase its share in the coming months. It also plans to share updates in a public benefit report, but has not given a date for that report. Until stockholders approve the plan, the 5% remains a promise rather than a completed transfer of shares.