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Musk and Anthropic Pledge Billions in Stock Giveaways
· Confirmed
In Short: Tech giants Elon Musk and Anthropic have announced multi-billion-dollar equity giveaway pledges to address public fears over AI safety and job displacement.
Tech giants Elon Musk and Anthropic have announced multi-billion-dollar equity giveaway pledges aimed at addressing public fears over AI safety and job displacement.
According to Android Headlines, Anthropic has committed 5% of its company shares to a brand-new Public Benefit Fund, potentially worth $75 billion to $100 billion. Musk, in response, pledged one SpaceX share to every child in the United States, a giveaway potentially worth over $10 billion.
Musk made the announcement on social media, arguing that tech companies should distribute shares directly to the public rather than locking them up in internal funds. SpaceX shares are currently trading near $149 each, and distributing one share to every child under 18 in the U.S. would cover approximately 72 million people.
Anthropic’s announcement comes as the company prepares for a massive public benefit IPO, with a potential valuation between $1.5 trillion and $2 trillion. The company has already committed $200 million to studying and addressing the technology’s impact on employment.
Musk’s plan to give every child in the U.S. a SpaceX share is set to begin next year, following the Trump administration’s “Trump Accounts” initiative, which provides eligible children with investment accounts and federal deposits.
Anthropic’s new fund will not finance donations or lobbying, and when combined with existing commitments from founders and employees, roughly 20% of the company’s shares will be dedicated to public-benefit purposes.
The companies’ actions come amid mounting scrutiny over the impact of AI on jobs and safety. Musk’s announcement follows Anthropic’s plan to commit at least 5% of its shares, valued at $48 billion, to a fund supporting social causes.
In a statement, Anthropic said, “Given the pace of AI progress, bolder approaches may be needed.” The company has already committed $200 million to studying and addressing the technology’s impact on employment.
Musk’s post was viewed millions of times within hours, a testament to the outsized attention that follows his every pronouncement.
The companies’ pledges reflect an escalating contest over how to distribute the spoils of the AI and space booms, positioning them as leaders in addressing public concerns.
Both companies are seeking to position themselves as responsible stewards of technology, addressing public fears over AI safety and job displacement.
The announcements by Musk and Anthropic represent a significant shift in how tech companies are addressing public concerns over AI and its impact on society.
Background
Tech giants Elon Musk and Anthropic have announced multi-billion-dollar equity giveaway pledges aimed at addressing public fears over AI safety and job displacement, according to Android Headlines.
What's confirmed
- Musk said on Monday that he would give one of his shares at his rocket company, which owns xAI, to every child in America next year.
- Anthropic’s announcement comes as the Claude developer prepares for a potential stock market listing that could value it at more than $1 trillion.
- However, Musk has not yet explained how the distribution would work or confirmed which children would qualify.
- At that price, distributing one share to every person under 18 in the country would put the potential value of Musk’s proposed giveaway at around $10.7 billion.
- Musk’s announcement follows Anthropic’s plan to commit at least 5% of its shares, valued at $48 billion, to a fund supporting social causes.
- This will be the first of many." It came after he responded to Anthropic's public fund pledge with: "I recommend giving the shares directly to the public.
What's still developing
- Anthropic prepares for a blockbuster stock market listing that could value the firm between $1.5 trillion and $2 trillion.
- So, that 5% pledge represents a staggering $75 billion to $100 billion.
- Last week, Anthropic told prospective investors that its revenue surged by 45% to $16.8bn (£12.6bn) in the three months to the end of September.
- The 27-year-old's former boss, Anthropic head Dario Amodei, had previously called for AI development to slow down - though some have questioned the motivations behind this.
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- SpaceX, which is an American aerospace manufacturer and provider of space transportation, was founded by Musk in 2002 and operates Starlink satellite internet service and other space programmes.
- SpaceX COO and President Gwynne Shotwell has already pledged a personal donation of $320 million in SpaceX stock for more than 2 million children, Yahoo News reported.
- Subject to stockholder approval, Anthropic plans to initially commit 5% of its shares to its new fund, with the possibility of contributing another 2% for every 50% increase in the company’s value above a predetermined baseline.
- Anthropic is laying the ground for a potential blockbuster stock market listing that could value the firm at more than $1tn (£750bn).
- In September, a researcher who quit Anthropic said people working on the technology were "genuinely frightened" about the speed of its advancements and what it could mean for humanity.
- In common with other AI firms, it is seeking to position itself as being able to generate huge profits despite spending billions on developing the technology and building infrastructure to power its models.
- “This will be the first of many.” The proposal would give roughly 73 million Americans under the age of 18 a direct stake in the aerospace and artificial intelligence company, according to U.S.