News & Updates
The latest news and updates from companies in the WLTH portfolio.
Who gets a share of AI wealth? Anthropic and Musk have different answers
Anthropic will dedicate 5 per cent of its shares to a public-benefit fund, while Elon Musk has pledged SpaceX shares to American children, offering two different ways to distribute technology wealth Anthropic, the company behind the Claude family of AI models, said on Sunday that it would commit 5 per cent of its shares to a new Public Benefit Fund. Musk, meanwhile, pledged on Monday to give one SpaceX share to every child in America next year. The proposals come as AI companies attract huge investments and expand their businesses, while concerns grow over the technology's impact on jobs, safety and society. The difference lies in how the two plans would work. Anthropic's fund could finance charitable initiatives and potentially make direct payments to selected groups. Musk has said that giving shares directly to people is a better way to let the public participate in the future economy. Anthropic's fund could be worth billions Anthropic's proposed fund could be worth tens of billions of dollars, depending on the company's valuation. The AI firm is preparing for a potential initial public offering (IPO) that could value it at around $2 trillion. Reuters reported last week that some investors were also considering a lower valuation of about $1.5 trillion. At those valuations, a 5 per cent stake would be worth between $75 billion and $100 billion. These are estimates based on potential valuations, not cash that Anthropic has already raised for the fund. The company said the fund would be established as a wholly owned limited liability company, giving it flexibility to support different public-benefit initiatives. These could include large donations to non-profit organisations or direct distributions to specific groups of people. One area of focus could be the labour market. Anthropic has warned that AI could create enormous economic value but also disrupt jobs and cause instability for workers. The company has already committed $200 million to studying and addressing the effects of AI on employment. It said the new fund could allow it to take further steps as the technology develops. Anthropic also plans to give the fund the option of receiving more shares as the company grows. Its board could allocate an additional 2 per cent of the company's shares for every 50 per cent increase in its value above a baseline that has yet to be disclosed. The company said the fund would not use its Anthropic shares for lobbying or political donations in the United States or abroad. The new commitment builds on earlier pledges by Anthropic's founders and employees. The co-founders had pledged to donate 80 per cent of their equity holdings, while an employee donation-matching programme allows workers to pledge shares that the company matches. Anthropic said roughly 20 per cent of its shares would be dedicated to public-benefit purposes when these commitments are combined, excluding any additional shares that may later go to the fund. The company has yet to disclose the fund's full governance structure and the valuation thresholds that could increase its stake. Musk plans to give SpaceX shares to children Musk said on Monday that he would give one SpaceX share to every child in America next year, describing the move as the first of several such efforts. Based on US Census figures showing about 72 million children in the country, the proposed distribution could be worth roughly $11 billion at current share prices. Musk did not provide details on how the shares would be distributed, which children would qualify or whether recipients would face restrictions on selling them. SpaceX also did not immediately clarify whether the proposed giveaway would be linked to Trump Accounts, a US government-backed investment programme for children. Launched by the White House, Trump Accounts provide a government-funded $1,000 investment account for eligible US citizens born between 2025 and 2028. Families can add money to the accounts as the children grow up. The programme also allows companies and individuals to contribute to the accounts. Dell, Visa, Micron and Delta Air Lines are among the companies that have pledged additional funding or employer contributions. US President Donald Trump welcomed Musk's announcement, thanking him on Truth Social for giving SpaceX stock to millions of American children through the programme. Unlike a cash donation, the value of Musk's proposed contribution would depend on SpaceX's share price. Recipients could benefit if the stock rises, but the value of their holdings could also fall. Musk has argued that direct share ownership would allow people to benefit from the growth of companies shaping the future economy. Why AI companies are under pressure to share wealth The announcements come as AI's rapid growth brings both financial opportunities and concerns about its wider effects. Businesses are adopting AI tools to improve productivity and reduce costs. Some companies, particularly in the technology sector, have announced job cuts while pointing to efficiency gains from the technology. Anthropic has also warned that advanced AI could pose catastrophic or existential risks to humanity. Its proposed fund could support initiatives addressing some of these concerns, including the effects of automation on workers. The wider question is whether the gains from AI will remain concentrated among companies, founders and investors or reach a larger share of society. Anthropic's approach would direct part of its ownership towards a fund that can finance public-benefit projects. Musk's proposal would give children a direct financial stake in SpaceX, exposing the value of their holdings to the company's future performance. Neither initiative has yet provided all the details needed to assess how much the public will ultimately receive or how the benefits will be distributed. Anthropic still needs to explain the fund's governance and how its additional share commitments will work. Musk has not outlined the mechanics of his proposed giveaway.
OpenAI rushing to raise $30 billion before Anthropic's IPO. What is at stake?
OpenAI is accelerating a proposed $30 billion funding round as Anthropic prepares for an expected November IPO OpenAI wants to secure billions of dollars from investors before its biggest rival, Anthropic, gets a chance to make its case to the public markets, Reuters reported on Tuesday. The ChatGPT maker is speeding up talks for a funding round of about $30 billion that could value it at more than $1.4 trillion, the report said. OpenAI is aiming to secure investor commitments before Anthropic's expected stock market debut in mid-November. Existing backers, including Japan's SoftBank Group and Abu Dhabi-based MGX, are in talks to participate in the round, according to the report. Why does OpenAI want to move first? Both companies are competing for money from investors who may have to choose how much capital to commit to each business. Anthropic is preparing for a potential initial public offering (IPO), in which a company sells shares to the public for the first time. Its planned listing could give investors a more detailed view of its finances and provide a direct basis for comparing the two AI developers. OpenAI wants to complete its fundraising before those disclosures invite closer comparisons between the companies, the report said. The timing also matters because investors are becoming more cautious about the high valuations attached to AI companies. Rising bond yields, volatile technology stocks and questions about the cost of building AI infrastructure have made it harder for businesses to assume that investors will keep funding expansion at any price. By securing commitments now, OpenAI could bring in fresh capital before investors reassess how much they are willing to pay for AI businesses. OpenAI points to revenue growth OpenAI is making the case that its growing business supports a higher valuation. The company has told investors that its annualised revenue reached $50 billion following the launch of its GPT-6 Astra model. It expects that figure to rise to $70 billion by the end of the year, according to the report. Annualised revenue is an estimate of what a company would earn over a full year if its current pace of revenue continued. It is not the same as revenue already earned during that year. OpenAI has also cut prices on some of its cheaper AI models, saying this has helped increase usage. The company has told investors it could reduce prices further. Lower prices could attract more users and businesses, but they can also put pressure on how much money a company earns from each customer. Investors will need to assess whether rising usage can translate into sustainable revenue growth. OpenAI was valued at $852 billion in March, after a funding round that included $122 billion in committed capital. A valuation above $1.4 trillion would mark a substantial increase in just a few months. Anthropic is also growing fast Anthropic is entering the fundraising race with strong revenue growth of its own. The company told prospective investors that its revenue rose to $16.8 billion in the third quarter from $11.6 billion in the second quarter, as reported by Reuters. It also said it was profitable on an adjusted basis during the third quarter. Its annualised revenue had reached roughly $65 billion by July, Reuters previously reported. But the pace of monthly revenue growth has raised questions about how much investors should pay for the business. Some existing and prospective investors have discussed a valuation of around $1.5 trillion for Anthropic's expected IPO, below the roughly $2 trillion valuation previously sought. OpenAI has also challenged how Anthropic reports revenue from contracts sold through third-party cloud providers. OpenAI records revenue after deducting partners' shares, while it has accused Anthropic of counting the full value of such contracts. Anthropic has said it follows established accounting practices. These differences could make comparisons between the two companies more complicated, even as investors try to decide which business offers the stronger growth prospects. What is at stake for investors? The immediate question is whether OpenAI can secure funding at its proposed valuation before Anthropic's IPO gives investors more information to assess the rival company. For investors, the challenge is to judge whether the companies' rapid growth can justify valuations running into trillions of dollars. Revenue growth matters, but so do the costs of developing AI models, operating data centres and securing the computing power needed to serve more users. The risks are becoming harder to ignore. AI infrastructure companies have faced pressure as investors examine the borrowing needed to finance data centres. Several companies have also delayed or paused planned stock market listings amid market volatility and concerns about valuations. OpenAI needs capital to meet its infrastructure commitments and strengthen its finances if weaker IPO markets delay its planned 2027 listing, Reuters reported. The outcome of the fundraising race could therefore affect more than the two AI developers. It could also offer a signal of how much investors are willing to pay to participate in the next phase of the AI boom. If OpenAI secures the money at its targeted valuation, it would strengthen its ability to finance expansion without immediately relying on public markets. If investors become more cautious, the company may face tougher questions about its revenue outlook, spending and valuation.
Anthropic's $2 Trillion IPO Price Too High? Investors Weigh Lower Valuation: Report
Investors are reportedly considering a valuation of around $1.5 trillion for Anthropic's planned IPO, down from earlier expectations of $2 trillion Anthropic's planned initial public offering (IPO) is facing fresh valuation questions, with some existing and prospective investors considering a price tag of around $1.5 trillion, significantly below the roughly $2 trillion valuation previously expected for the artificial intelligence company, Reuters reported on Friday. According to the report, the reassessment follows the company's latest financial disclosures, which showed strong revenue growth but also raised questions about the pace of expansion and the enormous cost of building and operating AI systems. Some attendees at Anthropic's investor day in San Francisco had discussed a valuation of around $1.5 trillion for the planned November share sale, Reuters reported. Investors had previously expected a valuation of roughly $2 trillion. Revenue jumps, but growth is slowing Anthropic told prospective IPO investors that its revenue rose 45 per cent sequentially to $16.8 billion in the third quarter. The company also reported a profit on an adjusted basis during the quarter. However, some investors were disappointed by the slowdown in sequential revenue growth, the report said. Anthropic's revenue had more than doubled between the first and second quarters, reaching $11.6 billion in the second quarter. The latest increase was considerably slower by comparison, despite the continued expansion of its business. $518 billion AI spending commitment Anthropic's planned listing comes amid growing scrutiny of the capital required to develop advanced AI systems. The company has committed to spending at least $518 billion over a decade on cloud services, computing capacity and infrastructure, according to Reuters. Anthropic's IPO prospectus, reported by Reuters in September, showed that the company recorded a loss of $42 billion in 2025 and expected spending to increase as it expanded its AI infrastructure. Last year, its revenue surged twelvefold to nearly $4.6 billion, while its operating loss exceeded $8 billion, excluding writedowns of various liabilities largely linked to previous fundraising, Reuters reported. Why Anthropic's IPO matters for the AI market The proposed listing is emerging as an important test of investor appetite for AI companies and the infrastructure supporting them. A weaker-than-expected reception for Anthropic's IPO could add to concerns about the wider AI investment boom. Investors are also watching the prospect of an OpenAI listing, which could become another major test of demand for shares in leading AI developers. The concerns come as a technology sell-off has affected global financial markets, including AI infrastructure companies, chipmakers and firms that rent out computing power. Shares and bonds of CoreWeave, an AI cloud computing company backed by Nvidia, fell on Thursday amid growing concerns about the financing of AI infrastructure, Reuters reported. The sector has increasingly relied on borrowed money to fund data centres and computing capacity. The IPO market has also faced setbacks. Data centre operator SB Energy delayed its planned listing in September, while nuclear technology company Holtec Nuclear suspended its IPO plans earlier that month, according to Reuters. Founded in 2021 by former OpenAI executives, including chief executive Dario Amodei and his sister Daniela Amodei, Anthropic has become one of the leading developers of generative AI through its Claude family of models. Alphabet's Google and Amazon are among its investors and provide computing infrastructure and distribution support, while also competing in the AI market.
Anthropic's $16.8 billion quarter raises the stakes for its planned IPO
Anthropic's revenue rose 45 per cent to $16.8 billion in Q3 as reported adjusted profitability strengthens its IPO pitch, with investors weighing its growth against massive AI infrastructure commitments Anthropic's revenue jumped 45 per cent in the third quarter to $16.8 billion, and the company told prospective investors it was profitable on an adjusted basis. The figures strengthen its case ahead of a potential IPO, although its planned valuation of more than $2 trillion will put the sustainability of its growth under scrutiny. Revenue rose from $11.6 billion in the second quarter to $16.8 billion in the third quarter, Reuters reported on Thursday, citing an investor who attended a pre-IPO meeting with Anthropic's leadership in San Francisco. The company generated $4.7 billion in revenue in the first quarter, the report said. The meeting was intended to familiarise prospective investors with the company ahead of its highly anticipated stock-market debut. Revenue growth against rising AI costs Founded by former OpenAI executives, Anthropic has emerged as one of the leading developers of generative artificial intelligence through its Claude family of models. Its growth has been supported by Alphabet's Google and Amazon, which are investors, suppliers of computing power and distribution partners, while also competing in the AI market. Anthropic's revenue has expanded rapidly. It rose twelvefold to nearly $4.6 billion last year, even as the company recorded an operating loss of more than $8 billion, excluding write-downs of liabilities largely associated with previous fundraising, Reuters reported in September. The company has committed at least $518 billion over a decade to cloud services, computing and infrastructure, according to a separate Reuters report. The commitments highlight the scale of investment required to develop, train and operate increasingly capable AI systems. For prospective shareholders, the challenge will be to assess whether Anthropic can sustain its revenue growth while managing the cost of computing resources and infrastructure. Strong demand for AI products can support sales, but the expense of developing and running advanced models remains a central consideration when evaluating the long-term profitability of AI businesses. Scrutiny of AI companies' finances has intensified as developers commit substantial resources to advanced chips, data centres and computing capacity. Investors are increasingly looking beyond revenue growth to examine operating expenses, future funding requirements and the ability to generate durable earnings. A test for AI valuations Anthropic's expected IPO is set to precede a public listing by rival OpenAI, making it an early test of investor appetite for AI developers pursuing rapid expansion despite substantial costs. Reuters has reported that Anthropic's public-market debut is likely to be pushed until after the November US midterm elections. The company is seeking a valuation of more than $2 trillion, according to the report. At that level, investors will have to weigh its rapid revenue growth and reported adjusted profitability against its infrastructure commitments and the uncertainty surrounding the long-term economics of advanced AI. A successful listing could offer a benchmark for how public-market investors value fast-growing AI businesses. It could also provide a clearer indication of how much weight investors place on revenue growth and adjusted profitability when companies require significant capital to expand. Anthropic has sought to distinguish itself through its focus on AI safety, while continuing to compete in the development and commercialisation of more powerful systems. Its research has identified troubling behaviour by its AI agents in test environments, including leaking sensitive information and sabotaging code. The company has said it has not seen evidence of such misalignment in real-world deployments.
Anthropic AI model filed fake homicide tip with Philadelphia police during test
An Anthropic AI model running a test filed a fabricated tip about an unsolved murder on a Philadelphia police website, and police say the company took two months to report it An artificial intelligence model developed by Anthropic submitted a fabricated tip about an unsolved homicide to Philadelphia police, authorities said Friday, criticizing the company for taking two months to report the incident. The Philadelphia Police Department said the false submission was made in July through PhillyUnsolvedMurders.com, a public website where people can share information about unsolved killings. According to Anthropic's account, as relayed by police, the model was running a test that involved interacting with randomly selected websites when it reached the site and filed false information about an unsolved murder. The AI model presented itself as someone who might have knowledge of the case. The incident echoed other recent cases of unintended behavior involving AI models, including one where an OpenAI agent undergoing a security evaluation broke out of its testing environment and breached systems at AI platform Hugging Face. The episode heightened concerns about the AI industry's increased use of AI agents, systems programmed to take multi-step actions without human supervision. Anthropic published a report Friday outlining multiple types of "unintended" actions that its models have taken, including the incident involving the Philadelphia Police Department website. Other organizations impacted included the White House and other US government agencies, the report said. The newly revealed incidents "had minimal real-world impact" and were "significantly less severe" than other cybersecurity incidents previously reported, Anthropic said. The company outlined four categories of incidents that it found during an internal review of its Claude model: exploiting "basic" coding flaws, submitting forms on websites, bypassing requirements for tokens or fees, and using short URLs to get around other limits. Anthropic has turned off internet access for Claude during all internal testing for now "until we have confirmed that our security and monitoring measures... reliably catch behaviors like these," the report said. Philadelphia police said the phony tip, dated July 18, was flagged as spam and never reached the department's Real-Time Crime Center for vetting. They added that there was no sign that police systems had been breached or department data compromised. Anthropic discovered the incident on September 28, shut down the automated testing process responsible and added a new validation step for future tests, police said. The company alerted the department on October 7, and the two sides met the following day. "The two-month delay in detecting and reporting the incident to the City is unacceptable," the department said. Police said their safeguards had limited the impact, but that these "do not diminish the seriousness of an AI system presenting fabricated information as though it came from a person with knowledge of a homicide." "Unsolved cases involve real victims, grieving families and investigators working to secure answers," the statement added. (Except for the headline, this story has not been edited by Firstpost staff.)
