Elon Musk has pledged to give every child in the United States a share of SpaceX next year, proposing a raffle potentially worth $10.7 billion as artificial intelligence companies face growing pressure over their impact on society.
“Next year I will give one of my SpaceX shares to every child in America,” he wrote on X on Monday. “This will be the first of many.”
According to the US Census Bureau, the proposal would allow about 73 million Americans under the age of 18 to have a direct stake in the aerospace and artificial intelligence company. However, Musk has not yet explained how the distribution would work or confirmed which children would be eligible.
SpaceX’s donation could reach $10.7 billion
SpaceX began trading publicly in June, making it the largest IPO in history. Its shares were trading at about $146 at Friday’s close.
At that price, distributing one share to every person under 18 in the country would bring the potential value of Musk’s proposed gift to about $10.7 billion.
The plan still lacks practical details. Musk did not specify how eligible children would receive the shares, whether parents or guardians would manage them, or whether any restrictions would apply to the sale or transfer of the shares.
The proposal could give millions of young Americans early access to the stock market. However, the final cost and reach will depend on the eligibility rules and the number of shares ultimately distributed.
Federal investment program already targets children
Enabling children to participate financially in the market is already part of a separate US initiative. Earlier this month, the Treasury Department automatically enrolled millions of people under 18 in Trump Accounts, a new federal savings and investment program.
Under the program, children born between the beginning of 2025 and the end of 2028 are eligible for a one-time state contribution of $1,000.
The program aims to establish investment accounts for young Americans early in life. The tech mogul’s proposal would take a different approach and give company shares directly to children, although details of how his plan would work are not yet available.
Neither proposal specified how much individual recipients could ultimately gain, as the investment value can rise or fall over time.
Musk responds to Anthropic’s $48 billion fund
Musk announced his plan after Anthropic announced Sunday that the company would invest at least 5 percent of its shares in a new “public benefit fund.” Based on the private company’s latest valuation, the commitment would be worth around $48 billion.
According to Anthropic’s website, the fund could make “large donations” to nonprofits or make “direct distributions to targeted populations.” The company said the money could help combat the impact of artificial intelligence on employment.
To which Musk replied: “I recommend issuing the shares directly to the public… That’s what I will do.”
The AI industry is increasingly in the public eye
The competing proposals come at a time when tech companies face increasing criticism over AI safety, potential job losses and the environmental costs of expanding data center infrastructure.
Anthropic has itself warned of the “existential risk to humanity” posed by artificial intelligence, reflecting concerns about the longer-term consequences of the technology.
The rapid expansion of AI infrastructure has also raised questions about power requirements and the resources required to operate large data centers.
Musk’s pledge and Anthropic’s fund offer different approaches to distributing company assets in light of these concerns. Whether SpaceX goes through with the proposed gift depends on details that Musk has not yet disclosed.
