Unbridled optimism and cynicism drive AI charity

Tesla

Tue 13:00

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Robert Cyran
NEW YORK, Oct 19 (Reuters Breakingviews) - Andrew Carnegie, the US steel oligarch and philanthropist, said a man who dies rich dies disgraced. Announcements of public gifts by Silicon Valley moguls, naturally bring up the question of motivation: is this altruism or an insurance policy to ensure donors become wealthier? The answer is probably a mix of both.
Anthropic said on Sunday that it would give 5% of its shares to its public benefit fund, and additional gifts might ensue. Elon Musk quickly followed on Monday, saying on X he would “give one of my SpaceX shares to every kid in America”.
These promises are large. Anthropic’s impending initial public offering might value the company above $1.5 trillion, so that’s perhaps more than a $75 billion kitty. With 74 million people under 18 in the United States and at SpaceX’s SPCX.O current stock price, that’s an $11 billion pledge by its founder. And they are just the latest. Michael and Susan Dell are giving away $6.3 billion to kids and SpaceX President Gwynne Shotwell has committed millions of shares.
What lurks in their hearts is unknowable. Recipients may not care either. Some clues, however, suggest unbridled optimism and cynicism are driving this giveaway.
The makers of machine learning believe it will unleash phenomenal economic growth, progress and wealth. Anthropic recently published a survey, and its staff expect AI to make a Nobel-level discovery by 2030 and that annual GDP growth will reach 17%. The economy grew about 2% last year and hasn’t grown that fast since World War 2. Musk has said abundance from artificial intelligence means money may not matter. And Jeff Bezos predicted people may work three days a week in the future.
Promises, though, are also easier made than kept. Musk has a history of big talk. Tesla TSLA.O customers that put a deposit on a Roadster in 2017 are still waiting.
Self-benefit also comes into play. A Gallup poll in March found 70% oppose data centers in their area, and Pew Research Center said in September that attitudes are turning more negative. Protesters showed up at Anthropic's investor day last week. 
Musk’s history of leading the charge to dismantle the US Agency for International Development, the government’s foreign aid arm, may sit oddly with his sudden generosity, but it’s easier to win permission to build by handing out goodies. And if expert systems cause unemployment to rise substantially, as Anthropic’s employees think will happen, giveaways may offer a halo of social stability. It might even allow masters of AI to keep their wealth.
     
Follow Robert Cyran on Bluesky.
        
CONTEXT NEWS 
Anthropic said on October 18 it would contribute 5% of the company’s shares to its public benefit fund, subject to shareholder approval. An additional 2% could be added, at the board’s discretion, for each 50% increase in the company’s value above a set baseline.
The company did not specify what the fund would be used for, but suggested it might explore large donations to traditional nonprofits or to address subjects such as labor market instability resulting from AI. The equity will not be used for lobbying or political giving.
Separately, Elon Musk said in a post on X on October 19, “Next year, I will give one of my SpaceX shares to every kid in America. This will be the first of many.”
In December, Michael and Susan Dell pledged $6.3 billion to fund Trump Accounts, giving $250 to the first 25 million children under 10 years old and living in zip codes with median incomes below $150,000.

(Editing by Jennifer Saba; Production by Maya Nandhini)
((For previous columns by the author, Reuters customers can click on CYRAN/robert.cyran@thomsonreuters.com; Reuters Messaging: robert.cyran.thomsonreuters.com@reuters.net))