Anthropic sets aside 5% stake for public benefit fund ahead of November IPO

Quick Read

• Anthropic plans to put a 5% ownership stake, worth up to $100 billion, into a public benefit fund. Amazon (AMZN) and Alphabet (GOOGL) remain the only ways for public investors to gain indirect exposure to the company through their current investments.

• Critics, including Elon Musk, say the fund is still controlled by Anthropic. They argue that strict rules for when money must be paid out are needed to stop donations that benefit the company from being presented as public service.

Anthropic plans to give part of its ownership to a public benefit fund before its first public shares go on sale. On October 19, 2026, Kate Rooney reported that the AI developer plans to put a 5% ownership stake into a new public benefit fund ahead of its planned November IPO, when its shares are expected to begin trading publicly.

"So it's going to be starting with a 5% stake, which could be worth at least $50 billion. Could be closer to $100 billion if the company debuts at a $2 trillion price tag," Rooney said. This plan has a cost for shareholders because Anthropic also plans to add another 2% of equity to the fund every time the company's value rises by 50%. In other words, the fund gets a larger share as the company becomes more valuable.

Right now, public investors can get their main indirect exposure to Anthropic through its strategic investors, Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL). The IPO would give investors their first chance to own Anthropic shares directly.

Success Means IPO Buyers Own a Smaller Share

The shares placed in the fund are shares that public investors will not own. The first 5% will be set aside before trading begins. "Anthropic also says it plans to contribute more equity as its valuation grows, so they note a 2% increase for that public fund on every 50% jump in valuation," Rooney added.

This plan ties the amount given to the fund to the company's performance. Even if your investment in Anthropic does well, you will own a smaller share of the company and therefore a smaller share of its gains than you would if the fund did not receive those shares.

Anthropic has not said whether the extra shares will be newly created shares or shares taken from people who already own the company. This detail will determine who bears the cost of funding the public benefit fund. Investors should look for the answer in the IPO prospectus.

Company Rules Leave Public Shareholders With Little Control

Anthropic is a public benefit corporation. This means it has responsibilities to its shareholders and a stated goal of developing AI that benefits humanity. Its board can consider this public mission as well as the financial returns investors receive.

A Long-Term Benefit Trust oversees AI safety and appoints members of the company's board. The regular board handles the company's daily decisions. The section named Ben Bernanke among the trustees manages safety.

The fund will be a limited liability company (LLC) owned entirely by Anthropic. It will not lobby or make political donations. However, Anthropic's board will still decide how the fund's money is used and how much is donated.

Shareholders would have a financial stake in Anthropic but little control over how it is run. Many important details remain unclear before the IPO.

Public Anger About AI May Explain the Timing

"On one hand, guys, it does appear to be a move to win some public trust around AI. The IPO does come amid public backlash. We have seen it with data centers and some of the negative polling around this technology," Rooney said.

Concerns about people losing jobs because of AI add to the pressure. So does the large amount of money founders and early employees may make when the shares begin trading. By making this public pledge, Anthropic can show that it wants to benefit society at a time when it needs support from regulators and communities where it builds data centers.

However, people outside the company cannot easily check how or when the company-controlled fund actually gives away its money. This could lead to more questions about how the fund works.

Critics Want the Money Given Away Directly

"Some are questioning why Anthropic would retain control of the money versus just giving it away directly," Rooney said. Elon Musk and David Sacks, the former White House AI czar, were among those who opposed this setup.

Critics say money kept in an LLC controlled by Anthropic could end up supporting causes that also help the company itself. Anthropic argues that keeping control allows it to decide how quickly donations are made. It also says the ban on lobbying and political spending limits the chance of the company using the money for its own benefit.

The critics make a stronger case because the board controls when donations happen and how much money is given. Without clear rules, people outside the company cannot tell whether Anthropic is keeping its promise. Binding rules that require payments to be made under set conditions would help solve this problem.

What Anthropic's IPO Could Mean for AI Stocks

The positive case for Anthropic starts with strong demand for advanced AI models. In this area, Microsoft (NASDAQ:MSFT) reported that Azure revenue passed $100 billion for the first time. Microsoft's catalog of AI models also includes Anthropic's models.

An IPO of this size could also support the values of other AI companies. It would let public investors directly own part of a leading AI model developer for the first time. The article also profiled seven suppliers that support AI's growth, from power providers to cooling companies, in a free report. The less positive case points to the fund's effect on shareholders' ownership, concentrated control of the company, high valuations, public opposition to AI, and pressure on the way AI development is funded.

AI stocks with proven cash flow have a stronger foundation. Amazon's AWS revenue grew 37% to $42.23 billion in the June quarter, while Azure grew 43%. Anthropic is more difficult to value. Its full IPO prospectus has not yet explained all the rules for the fund and company oversight. Its shares will also need to trade for a while before the market settles on a price.