A big unknown we have yet to address is how much the arrival of AI will impact the labor market. There are all kinds of studies and conclusions: from those that point to a massive destruction of employment that is already beginning to be visible among the youngest, and others that are more optimistic that, although they admit that there will be a very turbulent transition period, the overall net balance will be positive.
In order to specifically alleviate the negative social impact of this transition period or other aspects related to the development of AI, Anthropic has announced an aid plan that will allocate a percentage of its shares to finance social programs to support non-profit organizations and scientific institutions. The most interesting thing is that it is not a fixed percentage, rather it will increase with anthropic growth.
5% on small print. The statement released by Anthropic indicates that the company will allocate 5% of its shares to a public benefit fund, if approved by shareholders. In addition, Anthropic’s board of directors will be able to add another 2% for every 50% increase in the company’s valuation, a base capitalization that has not yet been disclosed, but is expected to be in the company’s next IPO.
The fund will be an LLC (Limited Liability Company or limited liability company) owned by you, not the foundation. Through this, Anthropic will be able to allocate funds to NGO projects or distribute funding directly to scientific organizations or specific social groups. The company’s memorandum makes it clear that none of these funds can be used for economic lobbying or political donations. By pledging to its co-founders and employees, the company estimates that about 20% of its shares will end up in what the company calls “public benefits.” “It’s common practice for tech companies to incentivize their executives to raise their salaries. We allocate that capital to public benefits.”
Employment, stated reasons. One of the reasons given by the company founded by Dario Amodei for creating this fund is to mitigate the effects of AI on the labor market. “AI can create enormous economic value, but it can also cause instability for many workers,” the statement said. The IMF estimates that about 40% of the world’s jobs are open to the impact of AI. Dario Amodei has warned that it could eliminate half of its entry-level office jobs in less than five years.
Anthropic has already earmarked $200 million to study economic issues that will create job automation with the advent of AI. Still, he admits that “a bolder approach may be necessary.” Those who lose their jobs rarely have months off or savings to retrain and change jobs when needed.
A trust with the last word. What the announcement doesn’t explain is that Anthropic’s long-term benefit trust is behind all of the fund’s management. This internal entity of the company is an independent trust that must ensure that Anthropic balances the interests of shareholders with those affected by its activities in creating AI models. A kind of firewall between the interests of shareholders and society.
As explained The Wall Street JournalThe fund has so much internal power that it can appoint four of the seven directors and remove them without cause. Its members, like Ben Bernanke, have no financial interest or stake in Anthropic, which guarantees their impartiality. Anthropic must give them five days’ notice before selling half of the company or issuing extraordinary debt, with de facto power to veto decisions by the company’s board of directors.
University of Texas law professor Jens Damon assured American media that this administrative firewall counters the classic temptation of shareholders to prioritize their income over social outcomes: “Directors are elected by shareholders, and if the corporation deviates from its goals and focuses on maximizing profits, they benefit economically.” According to Professor Anne Lipton, a law professor at the University of Colorado, future shareholders after the company’s IPO “will have very little governance.” It’s not new. With SpaceX’s IPO, Elon Musk reserved the power to veto any decision imposed by shareholders.
Kasturi enters the scene. As if spurred by a spring, Elon Musk didn’t take long to respond to his rival’s announcement from his usual X platform: “I recommend offering the shares directly to the public. That’s what I’ll do.” He then promised: “Next year, I will give a share of my SpaceX to every child in America. It will be the first of many.” He has yet to elaborate on how they will be distributed or whether it’s another Musk trick.
Some have already paid for his bravery. There are about 72 million children under the age of 18 in the United States, according to official statistics. With SpaceX shares trading around $146 a share, the gift would be about $10.5 billion. If Anthropic goes public at a valuation close to $2 trillion, that 5% would be worth about $100 billion, more than ten times what Musk offered in his message.
In Xataka | Anthropic offers 172,000 euros a year to someone who wants to do exactly what an AI agent should do
Picture | Flickr (Sandra Blaser), Magnificent
