Elon Musk pledged on Monday that he would give every child in the United States a share in his $2 trillion aerospace and artificial intelligence company, SpaceX. Musk stated on X: "Next year, I will distribute my SpaceX shares to every child in America. This will be the first of many donations."
SpaceX only began public trading in June this year (and it was the largest initial public offering in history). As of last Friday's close, the company's stock price was around $146. Musk's proposal lacks details. It is unclear how these shares will be distributed to tens of millions of American children, or whether all of them will be eligible.
According to data from the U.S. Census Bureau, there are approximately 73 million people under the age of 18 in the United States. Based on SpaceX's current stock price, Musk's potential donation would be worth about $10.7 billion.
Getting young people involved in investing in the U.S. stock market is not a new idea. This month, the U.S. Treasury automatically registered millions of minors under the age of 18 for "Trump Accounts," a new federal savings and investment tool. Children born between early 2025 and the end of 2028 are eligible for a one-time $1,000 government subsidy.
In July this year, SpaceX President Gwynne Shotwell and her husband pledged to donate one share of SpaceX stock to each of the approximately 2 million children with registered accounts. The couple stated that they would prioritize donating shares to children from low-income families and those in Texas, where SpaceX is headquartered.
Musk's proposal was a response to an announcement made by Anthropic on Sunday. The statement said that the company would set aside at least 5% of its shares (valued at $48 billion based on the latest valuation of this private company) to establish a "Public Benefit Fund" for donations to social causes.
Anthropic wrote on its website that the fund could "donate large sums" to non-profit organizations or "distribute funds directly to specific groups," adding that the money could help mitigate the impact of artificial intelligence on people's jobs.
Musk countered on X, saying: "I suggest selling the shares directly to the public... I will do the same."
Elon Musk signed the Giving Pledge in 2012, a commitment by the world's wealthiest individuals to donate the majority of their wealth to charity during their lifetime or in their will.
According to its website, his charitable organization, the Musk Foundation, focuses on providing grants in a few areas such as renewable energy, space exploration, and pediatric research.
