Bernie Sanders proposes 50% public ownership of AI giants in sweeping new legislation

Bernie Sanders Continues to Be Only Democrat(ish) Lawmaker Willing to Govern on AI

Bernie Sanders might be 84 years old, but he sure acts more in touch with the general public's views on AI than most other lawmakers, including those in the party he caucuses with. In an op-ed published by the New York Times on Monday, the Independent Senator from Vermont called for the government to take a 50% ownership stake in the frontier AI labs, including OpenAI and Anthropic. Sanders' plan will manifest in the form of the American AI Sovereign Wealth Fund Act, a piece of legislation the Senator said he will soon introduce. That bill will call for a one-time, 50% tax on frontier AI companies (he names OpenAI, Anthropic, and xAI, though there is no mention of existing Big Tech players like Google and Meta) that would be paid in stock. Under Sanders' plan, the federal government would have a controlling share in these labs, both through voting shares and mandatory representation on each company's board, to block any decision that would be deemed harmful to the public. It would also seed a sovereign wealth fund and allow the government to take a share of the massive projected profits that the AI industry is expected to generate (you know, assuming the whole thing isn't a big bubble). On one hand, it'd be better if Bernie didn't pull his punches on this and just called for straight-up nationalization of the frontier labs. It's already clear the technology is a potential danger for all sorts of reasons, and the idea that it should be held by a handful of guys who are heavily invested in making themselves rich means public interest will never be their first consideration. It's also a good time to try to pull that card: Trump's decision to take a significant government stake in Intel, along with his attempts to wield the power of the federal government to make AI companies bend to his will makes it hard to mount a meaningful political defense against the idea. On the other hand, Sanders' proposal does a nice job of calling the bluff of the AI industry. As the Senator pointed out in his op-ed, OpenAI has called for the creation of a "public wealth fund that provides every citizen -- including those not invested in financial markets -- with a stake in AI-driven economic growth," and Anthropic has backed the idea of "national sovereign wealth funds with stakes in AI." Elon Musk has claimed to support "Universal high income via checks issued by the federal government," calling it "the best way to deal with unemployment caused by AI." Surely the response to this bill will be total support, right? (Gizmodo has reached out to OpenAI and Anthropic and will update this story if we hear back.) It's unlikely the American AI Sovereign Wealth Fund Act goes anywhere, because basically no legislation goes anywhere these days, but it's another indicator that Sanders is actually taking this moment seriously. He's one of the few Democratic-aligned politicians actively trying to regulate AI at a federal level and considering the possible consequences of this technology being operated by ungovernable billionaires. Sanders also proposed a pause on data center buildouts, which common wisdom suggested was unlikely to gain much traction, but the public clearly is aligned with Bernie on that issue. He might not have the best grasp on the technology itself, but Bernie continues to be pretty good at reading the tea leaves for how the public feels about AI.

Bernie Sanders proposes giving Americans a 50% stake in AI giants

Bernie Sanders is asking a question that will likely define the next decade of AI policy. Senator Bernie Sanders has announced plans to introduce legislation that would give the American public a direct ownership stake in the country's largest artificial intelligence companies, arguing that the economic gains generated by AI should benefit society as a whole rather than a small group of technology executives and investors. The proposal, called the American AI Sovereign Wealth Fund Act, would create a national sovereign wealth fund through a one-time 50% tax on the stock of major AI companies. Instead of taxing profits, the measure would require companies to contribute equity, effectively transferring a substantial ownership stake into a publicly controlled investment fund. In a video announcing the proposal, Sanders described artificial intelligence as "the most transformational technology in the history of the world" and argued that the technology is built upon humanity's collective knowledge, creativity, and labor. "The foundation of AI is our collective human intelligence," Sanders said. "Our books, songs, artwork, journalism, computer code, scientific research, videos, conversations, images, and ideas spanning generations." According to Sanders, the legislation would target companies such as OpenAI, Anthropic, xAI, and other major AI developers. The shares collected through the proposed tax would be placed into a sovereign wealth fund owned on behalf of the American public. The senator argues that the fund would serve two purposes. First, it would give the public a role in influencing the future direction of AI through government-held voting shares and board representation. Second, it would allow Americans to benefit financially if the value of leading AI companies continues to grow in the coming decades. Sanders suggested that future proceeds from the fund could help support direct payments to citizens as well as investments in healthcare, education, and housing. The proposal draws inspiration from sovereign wealth funds already operating around the world. Sanders specifically pointed to Norway's government pension fund, built on oil revenues and now one of the world's largest investment funds, and Alaska's Permanent Fund, which distributes annual payments to state residents. The announcement comes at a time when the world is actively deliberating on how the economic benefits of artificial intelligence should be distributed. Supporters of stronger AI wealth-sharing mechanisms argue that automation could dramatically increase productivity while simultaneously displacing workers across multiple industries. Critics of current AI development models contend that a handful of companies and investors could capture most of the economic gains generated by the technology. Sanders has repeatedly raised concerns that AI and robotics could eliminate jobs while concentrating wealth and power in the hands of a small number of technology firms. Earlier this year, he warned that artificial intelligence could become "the most transformative economic revolution in the history of this country" and called for policies that ensure workers benefit from the technology rather than being displaced by it. Notably, Sanders argued that the idea of public participation in AI-generated wealth is not entirely new. OpenAI has previously discussed concepts involving public wealth funds that would give citizens a stake in AI-driven economic growth, while Anthropic has suggested national sovereign wealth funds as one possible response to the economic disruptions AI could create. Elon Musk has also publicly discussed direct government payments as a potential response to AI-related unemployment. While the proposal is likely to generate significant discussion within technology and policy circles, its prospects in Congress remain uncertain. A one-time 50% equity transfer would be among the most aggressive government interventions ever proposed for the U.S. technology sector and would almost certainly face strong opposition from AI companies, investors, and many lawmakers. Still, the announcement shows a growing policy debate that extends beyond AI safety and regulation. It is about who should own the enormous wealth that advanced artificial intelligence may create.

Bernie Sanders AI bill would give public half of the AI industry

Vermont Senator Bernie Sanders announced today that he will introduce legislation to give the American public a direct ownership stake in the country's largest artificial intelligence companies. Writing in the New York Times, Sanders laid out the case for the American AI Sovereign Wealth Fund Act -- a bill that would create a federally managed fund created not with cash, but with stock. Specifically, Sanders proposes a one-time transfer of 50 percent of equity from companies like OpenAI, Anthropic, and xAI to the government. The idea: since AI is built on the accumulated knowledge, creativity, conversations, and labor of the American people -- typically without permission or payment -- the American people deserve a cut of the profits. Here's what Sanders is proposing. What the American AI Sovereign Wealth Fund Act would accomplish The fund would acquire half the stock of the largest AI companies in the country through a mandated equity transfer -- Sanders is explicit that this is not a profits tax. The government would then hold voting shares and receive equal board representation at each company, giving it formal power to block decisions deemed harmful to the public. Revenue generated by the fund would flow directly to Americans as cash payments, with Sanders indicating that, as the fund grows, proceeds would eventually support broader public goods, including healthcare, education, and housing. He points to Norway's sovereign wealth fund and Alaska's Permanent Fund Dividend as working models of the concept. Sanders' core argument is that AI models were built on the writing, art, journalism, code, and research produced by millions of people without their consent or compensation. Sanders argues that because the technology is derived from collective human output, the wealth it generates should be shared collectively. As Sanders prepares his legislation, AI industry leaders are prepping for a massive payday when Anthropic, OpenAI, and SpaceX (which recently merged with xAI) go public this year. Sanders notes that versions of this idea have come from the AI industry itself. OpenAI CEO Sam Altman has proposed a public wealth fund tied to AI-driven economic growth. Anthropic has called for national sovereign wealth funds holding AI equity stakes. Musk has advocated for a "universal high income" to offset AI-related job displacement. Sanders frames these industry positions as validation -- though notably, endorsing a concept in the abstract and accepting a 50 percent equity transfer are very different things. What's still unresolved Sanders acknowledges the legislation is still being written. Several significant questions still lack answers. Profitability is one. OpenAI is notoriously not profitable and has operated at a loss for most of its existence. A sovereign wealth fund built on equity in companies that aren't profitable doesn't generate dividends, and Sanders hasn't addressed what the fund looks like if the AI sector's financial trajectory doesn't match analyst projections. Scope is another. Sanders says applying government ownership to companies where AI is only part of the business is "complicated," without explaining how that would be handled in practice. Microsoft, Google, and Amazon all have major AI operations -- it's unclear whether or how they'd fall under the legislation. Environmental impact gets no mention. AI infrastructure -- data centers, energy consumption, water use -- carries real costs that fall on communities that don't always benefit from generative AI, and the proposal offers no specific mechanism beyond the general promise of government oversight to address them. However, a well-structured sovereign wealth fund could distribute some AI wealth downward, in theory. Government board representation could also create some accountability for a powerful and fast-growing new industry. The populist proposal is far bolder than anything else in the current policy conversation. Until the senator drops the actual legislation, what we have is a premise that's hard to argue with and a plan that's still very much a sketch.

Bernie Sanders Wants Americans To Own 50% Of OpenAI, xAI And Anthropic In Sweeping New Bill -- Here's What

Sen. Bernie Sanders (I-Vt) has proposed a bill aimed at granting the American public ownership in the nation's leading artificial intelligence (AI) companies. Sanders, on Monday, has put forth the American AI Sovereign Wealth Fund Act proposal. This proposed legislation would establish a federal fund, not filled with cash, but with stock, procured through a one-time equity transfer of 50% from AI companies such as OpenAI, Anthropic, and xAI to the government. The fund would hold voting shares and have equal board representation in each company, thereby having the power to veto decisions considered detrimental to the public. He contends that AI, trained on the collective knowledge and labor of Americans, often without consent or compensation, should share its financial rewards with the public instead of concentrating wealth among AI leaders such as Elon Musk, Sam Altman, Dario Amodei, and others. The fund's revenue would be directly distributed to Americans as cash payments. As the fund expands, Sanders proposes that the proceeds could be used to support wider public goods, including healthcare, education, and housing. He points to Norway's sovereign wealth fund and Alaska's Permanent Fund Dividend as successful examples of this idea. OpenAI, xAI and Anthropic did not immediately respond to Benzinga's requests for comments. Lawmakers Push AI Oversight This proposal comes amid growing concerns over the rapid development of AI. In May, Sanders expressed that 70% of Americans believe AI is advancing too quickly, with 77% fearing the elimination of entire industries. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.