How AI-Driven Third-Wave Philanthropy Could Supercharge Federal R&D

What Is Third-Wave Philanthropy and Why Does It Matter?

Imagine a wave of new money—hundreds of billions of dollars—flowing into research, science, and education. That's exactly what could happen thanks to the rise of AI. This is called third-wave philanthropy, and it has the power to supercharge federal R&D like never before.

In a recent piece called The Third Wave of American Philanthropy, writer Nan Ransohoff explains how the AI boom is creating new fortunes. These fortunes are turning into charitable funds. The result? A massive increase in money available for public good.

Where Does the Money Come From?

The numbers are stunning. For example:

• The Bill and Melinda Gates Foundation recently increased its annual giving to $9 billion.
• Just three sources—the OpenAI Foundation, Anthropic founders, and Anthropic employees—could add an estimated $37 billion in new yearly spending.

This is not small change. It's a game-changer for federal research and STEM education funding.

How the NSF Could Benefit from Third-Wave Philanthropy

The U.S. National Science Foundation (NSF) is a perfect example. The NSF gives out about $9 billion each year in grants. But with help from philanthropies, that money could go much further.

Next Gen NSF: A Plan for Modernization

Before recent changes, the National Science Board was working on a plan called next gen NSF. This plan aims to modernize the agency. One of the top priorities? Creating a non-profit foundation for the NSF.

Why? A non-profit arm makes it easier for private groups—like companies and philanthropies—to partner with the NSF. This means taxpayer dollars can be stretched further.

Co-Investments: Already Working

The NSF already knows how to collaborate. Here are some examples:

• TechAccess: AI Ready America – A partnership with the Departments of Labor, Agriculture, and the Small Business Administration to build AI training hubs.
• Chip workforce development – Partnering with Micron and GlobalFoundries to train workers for the semiconductor industry.
• Philanthropy partnerships – Working with the Ford Foundation, Patrick J. McGovern Foundation, Pivotal Ventures, and others.

These efforts show how co-investment can multiply the impact of federal dollars.

What the NSF Actually Does

Many people don't realize just how much the NSF does. It is the main funder of basic science and engineering in the U.S. It also supports:

• STEM education from high school to community college
• Informal science learning at museums, botanical gardens, and libraries
• Workforce training programs

And thanks to the CHIPS & Science Act, the NSF now has a new arm: the Technology, Innovation, and Partnerships (TIP) Directorate. This is the first new directorate in 30 years. TIP helps turn research into real-world inventions and supports regional innovation.

Why TIP Is a Perfect Fit for Philanthropy

The TIP directorate is especially suited to work with third-wave philanthropies. It recently funded the Federation of American Scientists to bring together 32 leaders from 27 philanthropic groups. They met with NSF leaders to find new ways to partner, co-invest, and share resources.

A non-profit foundation for the NSF isn't a crazy idea. Other federal agencies already do this. For example:

• The CDC
• The FDA
• NASA
• The National Institutes of Health (NIH)
• The National Park Service

These agencies use non-profit arms to do more with public money.

The Bottom Line

Philanthropic funding can't replace federal investments. But it can speed up and scale up federal R&D to solve big problems. The third wave of philanthropy, driven by AI, gives us a powerful reason to create a non-profit foundation for the NSF—and maybe for other agencies too.

By working together, government and philanthropies can make every dollar count. That's good for science, good for education, and good for the country.