BusinessClaude

Anthropic limits shareholder control ahead of IPO

Original title: Who’s really in charge at Anthropic after the IPO?

Plain language

What it is: Anthropic is approaching its initial public offering with a complex governance structure that limits the control of public shareholders. This structure is designed to prioritize AI safety over shareholder value.
How it works: The structure includes a Long-Term Benefit Trust that can elect most of the board, and the seven founders who hold 50.1% of the voting power. Additionally, Anthropic is registered as a public benefit company, which legally protects its board when making safety-first decisions.
Where it is available: This governance structure applies to Anthropic as it prepares for its initial public offering.
Example: If the Long-Term Benefit Trust tries to remove a specific director without cause, the board can reject the move and let the company's employees vote on it.

What it is: Anthropic has established a multi-tiered governance model for its upcoming IPO to prevent public market shareholders from gaining majority control. The model is structured to legally protect the company's focus on AI safety.
How it works: Control is split between a Long-Term Benefit Trust electing Class T directors, the seven founders holding 50.1% voting power via a special stock class, and the board of directors. Employees also have a mechanism to vote on board seats if the board rejects certain trust decisions.
Where it is available: This architecture applies to Anthropic's corporate governance and stock classes ahead of its IPO.
Example: The seven founders can use their special class of stock to jointly elect three members of the board of directors.

The headline and explanation on this page are based on TechCrunch's post. The full details are in the original.

Who’s really in charge at Anthropic after the IPO?