Anthropic Pledges Shares to Public Benefit Fund Ahead of IPO

Anthropic's pitch to public market investors begins with $16.8 billion in quarterly revenue. The company shared that figure with potential investors on October 14, alongside an adjusted profit, according to The Next Web.

The financial presentation came ahead of a planned November stock market debut that could value Anthropic at as much as $2 trillion, Euronews reported. But the size of the business and the price investors should pay for it have become separate arguments.

Reports published on October 15 put quarterly revenue growth at roughly 45 percent. The figures differ slightly: Seeking Alpha reported 45 percent, while Euronews put the increase at about 46 percent. Anthropic also told investors it had positive adjusted free cash flow and an adjusted operating margin of 11 percent, according to The Hindu.

The growth was substantial, but it represented a slowdown. On October 15, World News CNA reported that investors were tempering valuation expectations because of slower revenue growth. Business Insider reported that Anthropic's crackdown on rivals using its models for distillation may have contributed to that slowdown.

By October 16, the valuation debate had sharpened. The Next Web reported that independent research firm New Constructs estimated Anthropic's value at $144 billion, far below the potential $2 trillion valuation reported a day earlier. That was the research firm's assessment, not an announced IPO price.

Safety concerns were also reaching investors. On October 15, Bloomberg.com reported that New York City's comptroller had called for Anthropic to pause its IPO over AI safety. The following day, MarketWatch reported that the company and the comptroller had opened communication about existential risks from AI and their implications for its future stock.

On October 18, Anthropic announced plans to put 5 percent of its shares into a public benefit fund. Bloomberg Technology reported that the company said the fund would enable donations addressing the public good, including AI's effects. CNBC International reported that Anthropic said establishing it as a limited liability company would give it greater flexibility over how money is used.

The share pledge is still a proposal requiring stockholder approval, according to The Next Web. It is a commitment of company stock, rather than an announced cash payment. Potential uses include donations to nongovernmental organizations and direct distributions to specific populations, Al Jazeera reported.

Anthropic says the new fund, combined with existing pledges from founders and employees, would dedicate around 20 percent of the company's shares to the public good, according to Forbes. That broader figure includes earlier commitments and should not be confused with the new 5 percent pledge.

The listing is also approaching in a weaker market for new offerings. Bloomberg Technology reported that risks were slowing the wider US IPO pipeline, leaving Anthropic as one of the few potential blockbuster debuts.

Stockholder approval is the next concrete hurdle for the fund. Its eventual spending choices will matter too: Anthropic has identified possible uses, but the coverage does not establish how much would go to particular groups or when distributions would begin.

Investors also face questions about control as well as price. On October 19, Technology reported that Anthropic had shared few details about the dynamics of a five-person trust empowered to shape its board and block major moves. The final IPO valuation, the durability of revenue growth and the trust's role remain central issues ahead of a listing.