Sanders proposes 50% public ownership of AI firms as Trump backs government stake in US AI giants

Sanders Introduces Radical AI Ownership Legislation

Sen. Bernie Sanders has filed the American AI Sovereign Wealth Fund Act, proposing an unprecedented 50% public ownership of AI firms operating in the United States1

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. The legislation would impose a one-time 50% tax on the largest AI companies, paid in shares rather than cash, effectively handing the American public a half-stake in US AI giants like OpenAI, Anthropic, and xAI2

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. Sanders' office estimates this sovereign wealth fund would be valued at approximately $7 trillion at current company valuations1

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The bill would establish an Independent Commission for Democratic AI, comprising seven bipartisan members nominated by the President and confirmed by the Senate1

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. This body would control 50% of voting shares in American AI tech companies, granting it authority to block decisions deemed harmful to the public and advocate for beneficial policies. The tax would apply to any AI firm generating more than $200 million in annual AI sales2

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Democratize AI's Economic Benefits Through Annual Dividends

The proposed public wealth fund would be required to pay out a 5% annual dividend, which Sanders estimates would deliver more than $1,000 per year to every American2

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. Any surplus dividends beyond these payments would fund healthcare, education, and housing initiatives2

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. The legislation frames AI as derived from "humanity's collective intelligence," listing books, songs, art, journalism, code, and research that models trained on2

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. Sanders argues that "a small number of oligarchs have essentially stolen the creative work of hundreds of millions of people," positioning AI wealth redistribution as a moral imperative rather than merely a fiscal policy2

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This approach follows the oil-and-minerals model, where if value is extracted from a public resource, the public should share the returns2

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. Sanders has been skeptical about AI development, previously calling for a complete halt on data center construction to ensure technology benefits everyone "not just the 1%"1

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Trump Administration Backs Government Stake with Different Approach

In a surprising political alignment, President Donald Trump confirmed his administration is exploring options to give the public a stake in leading AI companies4

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. Speaking on Air Force One, Trump said discussions are underway about "concepts where pieces could be given to the American public, where the American public essentially becomes a partner"3

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. The President declared it would be "a beautiful thing" that "would make 'em rich"3

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Vice President JD Vance articulated the administration's reasoning, drawing parallels to the industrial revolution. "Rich people got way richer. And that led to, in Europe, fascism and communism," Vance explained, arguing that wealth concentration rather than joblessness drove civil strife1

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. However, Vance rejected Sanders' cash redistribution model, stating it would "turn the poor people into effectively subservients of the rich people"1

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. Instead, the administration favors "pre-distribution"—giving the American people a stake in AI companies through collective bargaining power rather than direct payments.

Multiple Pathways for Giving the American People a Stake in AI Companies

Several mechanisms have emerged for implementing government stake arrangements. One approach mirrors the Intel deal, where the government took a 10% stake in exchange for billions in funding to expand domestic manufacturing5

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. Another model involves equity stakes in exchange for federal loan guarantees for chip plants and data centers. Tax reforms represent a third pathway, with proposals for taxes payable in stock rather than cash, effectively transferring equity stakes without requiring public investment5

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OpenAI proposed creating a public wealth fund in April to "provide every citizen—including those not invested in financial markets—with a stake in AI-driven economic growth"4

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. Sam Altman, OpenAI's CEO, met with Sanders but the two remained "far apart" after Sanders dismissed a voluntary "5% of our profits" offer as buying off the public2

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. Anthropic has explored a "digital dividend" concept, defined as payments to Americans funded by taxes on the AI sector5

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. Anthropic co-founder Jack Clark stated the company is "in daily conversations with the US government" and finding ways to support national security3

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Political Realities and Societal Impact

Sanders' legislation faces steep odds in a Republican-controlled Congress broadly supportive of industry. Former AI czar David Sacks called the plan "straight up confiscation of property," while a clause forcing companies to split AI and non-AI businesses would disrupt Elon Musk's merger of xAI into SpaceX2

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. Sanders acknowledged he doesn't expect passage, instead planting a flag for midterm elections where AI anxiety is becoming a campaign issue. Recent polling shows 53% of Americans worry someone in their household will lose a job due to AI, while 71% oppose data center construction in their communities.

The debate reflects growing concern over how AI might worsen inequality, particularly as it drives massive growth in public markets where typical Americans have limited investment compared to wealthier counterparts. Trump's transactional approach represents a notable shift for Republicans who traditionally advocate smaller government roles in private industry. "With Trump, it's about deals," said Tad DeHaven of the Cato Institute, noting the President "is transactional, he is deal-based". Whether through Sanders' aggressive seizure or Trump's negotiated partnerships, Washington has moved beyond debating whether the public should share in economic gains from AI—the question now centers on how much and through what mechanisms.