Musk and Anthropic pledge share giveaways

Reuters

Elon Musk's SpaceX and artificial intelligence giant Anthropic have pledged big financial giveaways as Big Tech firms come under pressure over the potential impact of AI on humanity.

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.

The billionaire's announcement came after Anthropic said it would commit 5% of its shares to a fund that will make donations for the "public good".

Anthropic is laying the ground for a potential blockbuster stock market listing that could value the firm at more than $1tn (£750bn). SpaceX set the record for biggest initial public offering (IPO) in history in June, raising $85.7bn.

The pledges come at a time when the AI industry is under intense scrutiny over safety concerns and fears about its impact on society and jobs.

Details over how each American child would be handed a share in SpaceX have not been disclosed.

In a post on social media, Musk said: "Next year, I will give one of my SpaceX shares to every kid in America. 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. This is what I will be doing."

Anthropic said none of the shares held in its Public Benefit Fund would be used for lobbying or political donations in the US or overseas.

The Claude developer said on Sunday that the fund could also receive another 2% of the firm's shares at its board's discretion.

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.

Companies around the world, primarily technology firms, have cut thousands of jobs after investing in AI, with many pointing to higher efficiencies from its adoption.

"I believe that if we don't slow down at the current rate of progress, there is a strong chance that we could all die in the immediate future," he said.

Jacob Coxon was speaking to the BBC after his resignation post on the dangers of AI went viral on a backdrop of growing safety concerns about the industry.

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.

Trump has repeatedly rejected the idea of laws to control development of the technology despite a debate about the potential risks of AI and what it means for humanity.