Elon Musk has pledged to give a share of SpaceX to every child in the United States next year, though he has yet to explain how the proposed giveaway would work.
“Next year, I will give one of my SpaceX shares to every kid in America,” Musk wrote on X on Monday. “This will be the first of many.”
According to CNN, which reported the pledge, Musk’s proposal comes as technology companies face mounting scrutiny over the social consequences of artificial intelligence, including potential job losses and the environmental costs of expanding data centres.
SpaceX, Musk’s aerospace and artificial intelligence company, went public in June in what was described as the largest initial public offering in history. Its shares were trading at about $146 at Friday’s market close.
Musk offered few details about the proposed distribution, leaving it unclear how shares would reach tens of millions of American children or whether every child would qualify.
The United States Census Bureau estimates that the country has roughly 73 million people under the age of 18. At the current share price, distributing one share to each would be worth approximately $10.7 billion.
The proposal follows other efforts to give children a financial stake in the stock market. This month, the US Treasury Department automatically enrolled millions of people under 18 in Trump Accounts, a new federal savings and investment programme. Children born between the beginning of 2025 and the end of 2028 are eligible for a one-off government contribution of $1,000.
In July, SpaceX President Gwynne Shotwell and her husband pledged to donate one SpaceX share to each of approximately 2 million children already enrolled in an account. The couple said they would prioritise children from lower-income households and those living in Texas, where SpaceX is headquartered.
Musk responds to Anthropic’s philanthropic plan
Musk announced his proposal in response to an initiative by Anthropic, the artificial intelligence company, which said on Sunday it would commit at least 5 percent of its shares to a “Public Benefit Fund”.
The shares were valued at $48 billion based on the company’s latest private valuation. According to CNN’s report, the fund could make large donations to non-profit organisations or distribute money directly to specific groups. Anthropic said the funding could help address the effects of artificial intelligence on employment.
Musk responded on X: “I recommend giving the shares directly to the public… This is what I will be doing.”
The exchange comes amid growing debate over how technology companies should share the benefits of AI and address the risks associated with its rapid development.
Musk, the world’s richest person, signed the Giving Pledge in 2012, committing to donate the majority of his wealth to charitable causes during his lifetime or through his will.
His charitable organisation, the Musk Foundation, provides grants in areas including renewable energy, space exploration and paediatric research, according to its website.
A New York Times analysis published last year found that the foundation held more than $14 billion in assets at the end of 2024, making it one of the largest foundations in the United States. However, the newspaper reported that its donations that year largely went to organisations closely connected to Musk’s business interests.
SpaceX did not immediately respond to a request for comment on the newspaper’s findings, CNN reported.
Musk has also questioned the effectiveness of conventional philanthropy. Speaking on the People by WTF podcast last year, he said the challenge was ensuring that charitable contributions produced tangible benefits rather than merely creating an appearance of generosity.
“The biggest challenge I find with my foundation is trying to give money away in a way that is truly beneficial to people,” he said. “It is very easy to give money away to get the appearance of goodness. It is very difficult to give money away for the reality of goodness.”
In 2021, Musk said he would sell $6 billion worth of Tesla stock and donate the proceeds to the United Nations’ World Food Programme if the organisation could demonstrate how the money would “solve world hunger”. According to CNN, it does not appear that he has made the promised donation.
Tech companies face mounting pressure over AI
Musk’s proposal and Anthropic’s philanthropic initiative come as AI companies face increasing criticism over the safety of their products, the prospect of widespread job displacement and the environmental consequences of expanding data centre infrastructure.
Anthropic itself has warned of the “existential risk to humanity” posed by the technology.
The broader technology industry is also facing scrutiny through films and documentaries examining corporate practices and accountability.
New productions include The Social Reckoning, about a Facebook employee who exposes unsafe company practices, and the documentary You Can See Everything, which follows Elizabeth Holmes, the founder of blood-testing start-up Theranos who was convicted of fraud.
Musk is also the subject of the documentary Musk, which examines his life and career and offers criticism of some of his business practices and his controversial involvement in politics.
Whether Musk’s proposed giveaway will materialise remains unclear. His announcement contained no details about eligibility, distribution or the arrangements needed to transfer shares to millions of children.