Anthropic IPO: Musk Wants AI Firm To Hand Shares Directly To Public, Says 'This Is What I Will Be Doing'

• Anthropic announced on Sunday that it would commit 5% of its shares to a newly established “Public Benefit Fund.”
• The Claude maker reported $16.8 billion in Q3 revenue at an investor meeting last week, up 45% from the previous quarter.
• Reuters reported that some investors are discussing a $1.5 trillion valuation for Anthropic ahead of its potential IPO.

Billionaire Elon Musk has suggested that Anthropic should distribute its shares directly to the public, pushing back against the IPO-bound AI company’s new initiative to dedicate a portion of its equity to a proposed public benefit fund.

“I recommend giving the shares directly to the public,” the Tesla and SpaceX CEO said late Sunday in response to Anthropic’s announcement on X. “This is what I will be doing,” he added, without elaborating on the plans.

Anthropic on Sunday announced that it would commit 5% of its shares to a newly established Anthropic Public Benefit Fund, with the allocation potentially increasing by another 2% for every 50% rise in the company’s valuation above a specified baseline. 

“Given the pace of AI progress, bolder approaches may be needed. The fund will have the versatility to pursue them,” Anthropic said in a press release, adding that the fund “might explore large donations to traditional nonprofits or direct distributions to specific populations.” The fund is structured as a wholly owned limited liability company (LLC).

Anthropic’s co-founders have pledged to donate 80% of their equity holdings, while approximately half of its employees participate in an equity donation-matching program. Anthropic also committed $200 million to addressing the potential labor-market disruption caused by AI.

Anthropic’s Public Benefit Fund Plan Met With Skepticism

However, some prominent figures criticized the announcement. David Sacks, a former technology adviser to President Donald Trump, questioned whether the structure would deliver its intended benefits. “You’ve put 20% of your equity in an LLC. Whether it serves the public good remains to be seen,” Sacks wrote on X.

Software investor and CEO of Golden Door Vijar Kohli raised concerns about the implications for Anthropic’s IPO, arguing that the arrangement could complicate fundraising and concentrate influence over the company’s shares in the hands of those managing the public benefit fund.

Anthropic is pre-emptively diluting voting rights,” Kohli wrote on X. “Setting up a new ownership structure distorts the shareholder base. It gives proxy to whoever runs the Public Benefit Fund. Which will be more about control rather than making money.”

Anthropic IPO Plans Take Shape

Anthropic’s announcement comes as the Claude maker prepares for a potential IPO. The company confidentially filed for a public listing with U.S. regulators in June.

At an investor meeting last week, Anthropic reported third-quarter revenue of $16.8 billion, up 45% from the previous quarter, and said it was profitable on an adjusted basis. 

However, Reuters reported that some investors were discussing a valuation of around $1.5 trillion, below earlier expectations of $2 trillion.  

Analysts and investors believe the IPO would test the AI businesses and the record-high valuations several AI-linked firms, including chip makers, command today.

On Stocktwits, retail sentiment for Anthropic was ‘neutral’ as of Sunday. The latest private market valuation of the firm is $1.36 trillion, according to Nasdaq Private Market.

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