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Our  commitment  to  public  benefit  also  extends  to  how  we  deploy  our  own  resources.  As  part  of  our  public 
benefit initiatives, we intend to direct a meaningful portion of our resources toward ensuring that frontier AI is 
safe  and  its  benefits  are  broadly  distributed.  This  might  include  making  contributions  to  nonprofit 
organizations,  research  institutions,  or  other  groups  working  on  problems  where  AI  can  have  the  greatest 
positive  impact,  as  well  as  programs  that  are  designed  to  make  Claude  accessible  to  communities,  educators, 
and public institutions that would not otherwise have access. We believe that how we distribute our resources is 
as much an expression of our mission as the details of how we build our models. 

As part of these initiatives, we contributed 846,840,960 shares of our Class N common stock, representing 5% 
of  our  fully  diluted  shares  as  of June  30,  2026  (assuming  full  conversion  of  the  Amazon  Notes),  to  the 
Anthropic Public Benefit Fund, our wholly owned subsidiary dedicated to the Company Purpose, which we refer 
to as the Initial Public Benefit Issuance. As the value we create grows, we intend for the public benefit to share 
meaningfully  in  that  growth  as  well.  To  that  end,  our  board  of  directors  has  approved  a  framework  for 
additional  contributions  tied  to  future  increases  in  our  share  price.  Following  this  offering,  our  board  of 
directors, in its discretion, may issue shares of our Class N common stock to the Anthropic Public Benefit Fund 
(or other designee) representing up to an additional 2% of our then-outstanding shares (plus any shares subject 
to options, RSUs, and other convertible securities and any shares held by the Anthropic Public Benefit Fund) 
each  time  our  share  price  appreciates 50%  above  the  prior  share  price  milestone,  beginning  with  our  initial 
public  offering  price.  A  share  price  milestone  is  reached  only  when  our  closing  share  price  has  exceeded  the 
applicable threshold on at least 90 of the trailing 120 consecutive trading days, and our average closing share 
price  over  the  ten  trading  days  prior  to  such  issuance  also  exceeds  that  threshold.  Although  our  board  of 
directors has approved this framework, any future contributions will be made at the discretion of our board of 
directors.  The  shares  that  are  contributed  to  the  Anthropic  Public  Benefit  Fund,  including  the  Initial  Public 
Benefit  Issuance,  may  be  transferred  or  donated  to  a  third  party,  or  otherwise  sold  in  a  registered  public 
offering or private placement transaction in furtherance of our public benefit initiatives. Our board of directors 
will  determine  the  allocations  and  distributions  from  the  Anthropic  Public  Benefit  Fund  until  it  approves  a 
specific governance structure for the entity, at which point decision-making authority is expected to transition 
to  designated  managers  of  the  Anthropic  Public  Benefit  Fund  operating  under  that  structure.  The  initial 
managers are Dario Amodei, Daniela Amodei, Jack Clark, and Dr. Neil “Buddy” Shah. The Initial Public Benefit 
Issuance  and  the  additional  share  contribution  framework  represent  one  of  the  ways  in  which  we  intend  to 
pursue the Company Purpose, but it is not the exclusive means of doing so. We expect to dedicate additional 
resources,  and  to  make  other  business  and  operational  decisions,  in  furtherance  of  our  Company  Purpose 
outside of, and in addition to, these equity contributions.

In  addition,  we  maintain  a  donation  matching  program  through  which  employees  can  pledge  a  meaningful 
portion  of  their  equity  awards  or  equivalent  cash  proceeds  to  a  donor-advised  fund  or  other  nonprofit 
organization,  and  we  match  those  donations  with  shares  of  our  Class  N  common  stock.  In  the  same  way  the 
Company Purpose defines how we direct our work as an organization, our donation matching program reflects 
a parallel commitment by our employees to direct their personal financial value created by that work toward the 
public good. We view our donation matching program as a meaningful expression of the Company Purpose and 
a reflection of the values that define our culture.

Finally,  our  co-founders  have  each  pledged  to  dedicate  80%  of  their  personal  equity  in  Anthropic  to 
philanthropic  causes,  separate  from  and  not  eligible  for  our  donation  matching  program.  For  additional 
information regarding these pledges, including related risks, see the section titled “Risk Factors—Risks Related 
to Ownership of our Class A Common Stock.” 

Competition

We face competition across multiple dimensions of our business. These competitors include:

Model Developers 

We  face  direct  competition  from  companies  building  frontier  models  for  third-party  software  developers  and 
enterprises, including OpenAI and Google, and large, well-capitalized technology companies investing to reach 
the  frontier.  These  are  well-capitalized  organizations  with  significant  financial  resources,  large  existing 
customer bases, and the ability to integrate their models into first-party applications sold directly to businesses. 
While these competitors have built meaningful market presence, we believe our primary focus on enterprises, 

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