Anthropic's public benefit corporation (PBC) structure brings unusual risks to IPO investors

Anthropic has filed an S-1 to IPO at a $1.5 trillion valuation or higher, and its public benefit corporation (PBC) structure brings unusual risks to IPO investors. A PBC requires the board to balance shareholders' financial interests against the public benefit mission; the company established a long-term benefit trust in 2023, the public benefit fund holds approximately 847 million Class N shares, about 5% of fully diluted shares as of June 30, and seven co-founders including Dario Amodei hold 50.1% of total voting power through a single Class F share. Delaware corporate law attorney Lawrence Hamermesh said the PBC law lacks a standard for judging the word "balance," making it hard to hold directors accountable; Harvard Law School professor John Coates believes the structure increases uncertainty in investment outcomes.