Anthropic plans to dedicate 5% of its shares to a newly created Public Benefit Fund, a move that would require shareholder approval and could take effect following the company’s anticipated initial public offering as soon as November.

The fund could expand as Anthropic’s valuation increases. Under the proposed arrangement, the company’s board may add another two percentage points to the fund for every 50% increase in Anthropic’s value above an undisclosed baseline. However, those additional contributions would remain at the board’s discretion, and the company has not specified how large the fund could eventually become.

The fund will operate as a wholly owned limited liability company rather than a tax-exempt 501(c)(3) nonprofit. Anthropic said shares held by the entity would not be used for lobbying or political donations in the United States or abroad.

The company said the fund could support nonprofit organizations, direct distributions and programs addressing the effects of Super Intelligence on workers. Anthropic has also indicated that it may explore large-scale donations as part of what it described as “bolder approaches” to addressing the technology’s societal effects.

Anthropic plans to release additional details about the fund’s governance and structure in the coming months, including the valuation milestones that could trigger further contributions. The company also intends to report on its progress in an upcoming public benefit report.

The announcement has drawn criticism from prominent technology executives. Palmer Luckey, founder of defense technology company Anduril, described the fund as “USAID 2.0” in a post on X, questioning the priorities of Anthropic’s leadership and its ties to the Effective Altruism movement. Former Trump Super Intelligence adviser David Sacks also questioned whether the arrangement would produce meaningful public benefits.

Tesla and SpaceX CEO Elon Musk offered a different approach, writing that he would “recommend giving the shares directly to the public.” Musk has separately announced plans to give every American child a share of SpaceX.

The timing of Anthropic’s announcement has also raised questions because the company is reportedly preparing for a November IPO. The planned offering could put its corporate structure, public commitments and approach to the societal effects of Super Intelligence under greater scrutiny from investors.

Anthropic told investors that its third-quarter revenue reached $16.8 billion. Lise Buyer, a partner at IPO advisory firm Class V Group, told CNBC that announcing the fund ahead of a public offering was “beneficial from an image perspective.” She added that it could help “burnish their reputation at a time when AI is coming under significant scrutiny.”

The proposed fund would give Anthropic a mechanism to direct part of its equity toward public-benefit initiatives, but questions remain about how the money will be distributed, who will oversee those decisions, and how the company will measure the results. Those details could become increasingly important as Anthropic moves toward the public markets.