The Next Wave of Billionaire IPOs from Silicon Valley is Approaching, and Nonprofits Are Prepared.

Ten years ago, Ryan Carrier found himself as an unsuccessful hedge fund manager, observing as AI technologies began to spiral out of control. Facebook’s algorithms influenced US elections, a Microsoft chatbot claimed the Holocaust was “fictional,” and Tesla’s Autopilot was involved in its first fatality. “There was a lack of governance, oversight, and accountability,” Carrier reflects. The AI-driven future for his children appeared grim.

That same year, Carrier established ForHumanity, a nonprofit dedicated to creating tools for auditing AI systems. Since its inception in 2016, it’s raised just a few hundred thousand dollars and remains a minor player in the sector. However, this could change soon, as ForHumanity is now among numerous nonprofits globally aiming to regulate AI, free animals from cages, eradicate poverty and illness, or promote democracy, all eager to secure a share of what is expected to be the largest philanthropic wave in decades.

Two nearly trillion-dollar AI firms, OpenAI, the creator of ChatGPT, and Anthropic, the developer of Claude, are anticipated to go public shortly, potentially making many current and former employees extremely wealthy. Many of these individuals are aligned with a philosophy known as effective altruism, which advocates for impactful donations sooner rather than later.

The seven founders of Anthropic have committed to donating 80 percent of their wealth, and the company has agreed to contribute one or three shares for every donation its employees make, depending on their joining date and subject to certain limits.

Industry insiders estimate that Anthropic’s IPO, which may occur in September, could result in an additional $15 billion annually in philanthropic contributions alone. This could increase total US giving by approximately 2.5 percent every year—the equivalent of adding four Bill Gateses, one of the world’s leading philanthropists. Anthropic declined to disclose the total amount its employees have pledged for donation or the organizations that might benefit.

However, such funding is not guaranteed. IPOs could be postponed or perform poorly, leaving employees clinging to their wealth. Industry experts also worry that an overwhelming number of charitable options and unpredictable trends may lead employees to retain more for themselves than initially expected.

Competition among potential donors is already intense. Jack Lewars, a consultant who provided advice on charitable giving to 13 ultra-wealthy tech and finance professionals last year, reports that employees at AI labs are inundated with as many as 20 unsolicited emails weekly from organizations seeking contributions.

WIRED spoke with 18 nonprofits and reached out to several more to learn how they are preparing for the anticipated philanthropic influx. None admitted to sending unsolicited proposals—a strategy that Lewars noted in his recent blog, The Funding Anthropalypse, “has almost no chance of success.” Instead, organizations are focusing on increasing hiring, training, marketing, and utilizing automation to position themselves to attract significant funding and deploy it quickly. One job posting at an education nonprofit specifically highlights building relationships at Anthropic as a priority.

“Everyone is going to pursue these funds,” states Christine Peterson, co-founder of the grantmaking group Foresight Institute, which claims to have support from Anthropic employees. “It’s going to be quite a ride.”

The Inside Track

Like many nonprofit leaders who shared insights with WIRED, ForHumanity’s Carrier states he is concentrating more on the mission than on fundraising. Yet, he acknowledges that this might be an opportune moment to pivot, pondering how to engage in IPO gatherings in San Francisco. “I simply need to get into that room,” Carrier expresses.

Bo Young Lee, CEO of the nonprofit AI4ALL, mentions attending more events, disseminating more research, and requesting introductions to AI lab employees from board members like AI scientist and entrepreneur Fei-Fei Li. Her organization educates young adults across the US to create their own AI models, aiming to diversify the tech workforce. Lee shares that she’s establishing “ambitious” fundraising targets, confident that the funding will materialize, although initial meetings haven’t yet occurred.