has promised to give one SpaceX share to every child in the US next year, a pledge worth an estimated $10.5 billion. The announcement comes a day after artificial intelligence company Anthropic proposed setting aside 5% of its equity for a public benefit fund. Both plans aim to share corporate wealth, but questions remain over eligibility, distribution, governance and tax implications.
What Elon Musk has promised
Elon Musk said on X on Monday that he plans to give one SpaceX share to every child in the US next year, describing the giveaway as “the first of many”. With each share valued at about $146, the plan could be worth roughly $10.5 billion, based on an estimated 72 million US children under the age of 18.
However, Musk has not explained how eligible children would be identified, how the shares would be transferred or when families could expect to receive them, ABC News reported. It also remains unclear how the giveaway would be funded and whether any conditions would apply to the shares.
At $146.03 a share, the proposed gifts would be worth roughly $10.5 billion.
An August filing with the US Securities and Exchange Commission showed Elon Musk held about 4.8 billion. Including unvested awards and stock options, his beneficial ownership rises to 6.4 billion shares, or 48.4% of the company. Giving away 72 million shares would reduce his direct holding by about 1.5%.
Musk has an estimated net worth of $904 billion.
What Anthropic has announced
Anthropic said on Sunday it would allocate 5% of its shares to a new Anthropic Public Benefit Fund, a wholly owned entity intended to support the public interest.
The allocation could increase as the company grows in value. For every 50% increase above a specified baseline, the board could approve an additional 2% of shares for the fund, subject to shareholder approval.
The fund could make large donations to established non-profit organisations or distribute money directly to specific groups. Anthropic has yet to name its overseers or disclose detailed governance arrangements, saying more information would follow in the coming months.
The announcement comes as the company prepares for a possible stock market debut as early as November. Elon Musk responded on X, arguing that shares should go directly to the public.
How could the SpaceX share gifts work?
Musk has not disclosed his distribution mechanism. Three possible routes highlight the tax and practical issues involved.
1. Giving shares directly to children
US tax rules generally require the person giving a gift to pay any gift tax. Since each proposed SpaceX share is worth about $146, far below the annual gift tax limit of around $19,000 per recipient, for each share. However, the scale and structure of the giveaway could affect reporting requirements.
Children would not normally pay income tax simply for receiving the shares. But if they later sell them, they could face a tax bill on the profit, particularly if Musk originally bought the shares at a much lower price. Shares given to young children may also need to be held in accounts managed by adults until the children are old enough to control them. Any investment income earned along the way could also be subject to special US tax rules for children, known as the kiddie tax.
2. Using Trump Accounts
One option is to give the shares through Trump Accounts, a savings scheme for children. In July, SpaceX president Gwynne Shotwell and her husband pledged one share each for more than two million children, with a focus on lower-income youngsters aged 11 to 17.
US Treasury guidance may also offer a way to donate shares through special savings accounts for children. Under the reported rules, the shares would generally have to stay in the accounts for five years. Musk has not said whether he intends to use this route.
3. Distributing shares through a charity
Musk could use a charitable organisation or foundation to manage the distribution. Donations to qualifying charities can offer tax advantages, including potential deductions, depending on the recipient’s legal status and the structure of the transfer.
Similar questions apply to Anthropic’s fund. Its tax treatment will depend on its legal structure and whether it qualifies for tax-exempt status.
How could Anthropic’s fund work?
The tax implications of ’s plan will depend on who receives the money and how the fund distributes it. Donations to registered charities would generally be tax-free for the recipients, although any tax benefit for Anthropic would depend on how the fund is set up.
If the fund gives money directly to individuals, recipients could have to pay tax, depending on how the payments are classified. Anthropic has yet to explain who will benefit or how the money will be distributed.
The fund could also hold on to the shares after Anthropic goes public and sell them later. Any profit could attract capital gains tax unless the fund qualifies for an exemption. Setting aside 5% of the company’s equity could also reduce existing shareholders’ ownership stakes, making it important to clarify how the plan will be approved and managed.
What remains unanswered?
Both proposals face significant practical hurdles.
Musk has not clarified whether his giveaway would cover only US citizens or all children living in the country, how eligibility would be verified, or how shares would reach roughly 72 million recipients.
The timing of any sale is also uncertain. Reported SpaceX post-listing restrictions, including a 366-day lock-up for insiders, raise questions about whether and when recipients could sell their shares. The rules applicable to gifted shares have not been established.
Anthropic, meanwhile, has yet to disclose who will oversee its fund, its legal status or its detailed tax arrangements.
Until both companies provide further details, the value of their proposed initiatives is easier to estimate than their practical and tax consequences.
This article is for general information only and does not constitute tax or legal advice.