Claude-maker Anthropic announced on October 18 that it plans to allocate 5% of its shares to a new Public Benefit Fund to support initiatives that benefit society. The allocation is subject to stockholder approval, and the fund could receive additional shares as the company's valuation increases.

The announcement comes as Anthropic prepares for a potential IPO in November, with reports suggesting a possible valuation of $1.5 trillion to $2 trillion. As a public benefit corporation, Anthropic must consider its social impact alongside its business goals.

Anthropic, which focuses on AI safety, has warned that AI could pose "catastrophic or existential risks to humanity." The company devoted about 80 pages of its 261-page prospectus to outlining potential risks.

How Anthropic's Public Benefit Fund Will Work

At the board's discretion, the fund could receive an additional 2% of Anthropic's shares for every 50% increase in the company's valuation. The starting valuation for these additional allocations has not yet been disclosed.

The fund could provide large donations to nonprofit organizations, make direct payments to certain populations, or fund "bolder approaches" to address AI's impact on jobs. Anthropic said the shares will not be used for lobbying or political contributions in the U.S. or other countries.

The company plans to share more details about the fund's governance and valuation criteria in the coming months. It also intends to publish a report on its progress toward its public-benefit goals.

Meanwhile, Anthropic's Q3 revenue rose roughly 46% to $16.8 billion, according to the company's latest investor meeting. It also reported adjusted profitability for the second consecutive quarter. However, revenue growth slowed compared with Q2, when revenue increased by more than 139%.

Anthropic Builds on Existing Public-Benefit Commitments

The new fund builds on Anthropic's existing $200 million commitment to studying and addressing AI-related labor market disruption.

The company's co-founders have also pledged to donate 80% of their equity holdings. Additionally, Anthropic runs a program that matches employees' share donations, with about half of its workforce participating in it.

Including these commitments and the proposed fund, roughly 20% of Anthropic's shares would be dedicated to public-benefit purposes. This estimate excludes any additional shares allocated to the fund as the company's valuation increases.

Explore TipRanks Private Company Center

Anthropic remains a private company for now, but investors can track its latest valuation, funding activity, and other key details on TipRanks' Anthropic private company page.