Anthropic Commits 5% of Shares to Public Benefit Fund

Anthropic Commits Shares to Public Benefit Fund Ahead of IPO

Anthropic has announced it will commit 5% of its shares to a new fund aimed at benefiting the public. This move comes as the company prepares for a potential initial public offering (IPO) next month. The shares are valued at about $48 billion based on its latest valuation. They will be allocated to the Anthropic Public Benefit Fund, pending shareholder approval. The company also stated it would add an extra 2% of its stock to the fund for every 50% increase in its market value.

The fund will support nonprofit organizations and address the societal impacts of artificial intelligence (AI), including job loss. Anthropic has already invested $200 million in studying these issues and aims to expand its efforts through this fund. The company emphasized that none of the shares in the fund would be used for lobbying or political donations, either in the U.S. or abroad.

Anthropic's move comes amid increased scrutiny of the AI industry over safety concerns and potential risks to society. The company acknowledged in its IPO filing that AI could pose "catastrophic or existential risks to humanity." In a blog post, Anthropic stated, "AI may generate enormous economic value, but it could also cause instability for many workers." This highlights the need for proactive measures to reduce these risks.

The firm is currently valued at around $965 billion and is reportedly targeting a valuation of $1.5 trillion for its upcoming IPO. However, concerns have emerged about slowing revenue growth. Anthropic reported a 50% quarter-on-quarter growth rate, down from 140% earlier this year.

Related coverage: OpenAI Commits $1 Billion to Cyber Defense Initiative.

Based on reporting by: theguardian.com, bbc.com