Anthropic, Musk outline duelling approaches to AI-era philanthropy

Anthropic and Elon Musk have described very different ways to share some of the wealth created by the AI boom. Anthropic, the company behind Claude, plans to put 5% of its shares into a new fund meant to benefit the public. Musk, meanwhile, has promised to give one SpaceX share to “every kid in America,” arguing that shares should go directly to people as the fast-growing industry faces greater public scrutiny.

Concerns about AI safety have grown after AI systems suffered security breaches and industry leaders issued serious warnings about the possibility that uncontrolled AI development could cause severe harm or even threaten humanity's existence. People are also worried that AI could lead to job losses.

Anthropic plans to share wealth through methods such as donations to nonprofit groups and direct payments to certain groups of people. Musk has said he recommends “giving 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 said in a post early on Oct 19. Musk, who runs SpaceX, a rival to Anthropic in the AI industry, held about 6.42 billion shares in the company as of June.

SpaceX shares rose about 1% in afternoon trading.

Anthropic said its plan would give it more freedom and the ability to make larger donations to benefit humanity.

The company is planning one of the largest initial public offerings (IPOs) in history as a public benefit corporation. This legal structure requires company leaders to balance the public interest with the goal of making a profit.

The IPO could value Anthropic at about US$2 trillion (S$2.6 trillion). However, Reuters reported exclusively last week that some investors were considering a lower value of about US$1.5 trillion. At those values, a 5% 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 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 plan comes months after the White House launched “Trump Accounts”. This investment programme will give US citizens born between 2025 and 2028 a government-funded investment account containing US$1,000. Families can add more money to these accounts as the children grow up.

People and companies can also donate company shares to these accounts. Many leading US companies have already promised to support the programme through matching contributions from employers or extra funding. These companies include Dell, Visa, Micron and Delta Air Lines.

Earlier in 2026, 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.

It was not immediately clear whether Musk's share donations would be part of Trump Accounts or whether the shares would have to be held for a set period before they could be sold. SpaceX did not immediately respond to a request for more details.

“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. He does not hold SpaceX shares in the investment portfolios he manages.

“It feels like a publicity stunt ... Will it create positive public sentiment? Perhaps.”

Michael Dell and his wife, Susan, have promised to give US$6.25 billion in cash to Trump Accounts, with the money aimed specifically at children from disadvantaged backgrounds. Unlike their cash donation, the value of Musk's contribution will depend on how SpaceX shares perform, and 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, chairman emeritus of Berkshire Hathaway and one of the best-known figures in philanthropy, is reported to have given away US$60 billion so far. Most of the remaining wealth in his roughly US$150 billion fortune is also intended for charitable causes.

The Bill & Melinda Gates Foundation has given out more than US$100 billion since it was established in 2000. Some of this money came from donations by Buffett.

AI's effects on jobs

Anthropic has presented itself as an AI research company that puts safety first. It has warned that AI could pose “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 certain groups of people and efforts to deal with AI's effects on jobs. These efforts would build on a US$200 million commitment the company had previously announced to study and address changes 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, the fund 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 announced.

Companies around the world have cut thousands of jobs after making large investments in AI. Many companies, especially technology firms, have said the technology is helping them work more efficiently.

No political donations

Anthropic said the shares held by its fund would not be used to pay for lobbying or political donations in the United States or other countries.

US lawmakers are considering stronger rules and oversight for AI. Companies are also making greater efforts to influence how the technology will be regulated.

Anthropic's plan, together with its co-founders' promise to donate 80% of their shares and a programme that matches employee donations, would mean that about 20% of the company's shares would be set aside for public benefit. This figure does not include any extra shares the fund might receive in the future.

Anthropic said it would soon share more details about how the fund would be managed, how it would be organised and what increases in the company's value could lead to the fund receiving more shares. REUTERS