OpenAI proposes giving US government 5% stake worth $42.6 billion amid regulatory pressure

Reviewed byNidhi Govil

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OpenAI CEO Sam Altman is in talks with the Trump administration about handing over a 5% equity stake valued at $42.6 billion. The proposal aims to share AI-driven economic growth with the public through a sovereign wealth fund similar to Alaska's oil dividend model. The move comes as AI companies face mounting political pressure and public skepticism.

OpenAI Pitches Unprecedented Government Ownership Deal

OpenAI is in early-stage discussions with the Trump administration about giving the US government a 5% ownership stake in the company, according to sources familiar with the talks

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. The Sam Altman proposal would see the ChatGPT maker hand over equity worth approximately $42.6 billion based on OpenAI's current $852 billion valuation

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. Sam Altman has argued that providing the public with a financial stake in AI companies is the optimal way to distribute the benefits of the AI boom

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Source: Analytics Insight

Source: Analytics Insight

US Sovereign Wealth Fund Model Targets Multiple AI Companies

The OpenAI 5% stake proposal extends beyond a single company arrangement. Altman has pitched a structure where every leading US AI lab would contribute the same equity share to a vehicle modeled on the Alaska Permanent Fund, which invests Alaska's oil wealth into stocks and pays annual dividends to state residents

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. According to the Financial Times, other AI companies approached include Google, Meta, and Anthropic, though none have indicated willingness to participate

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. The US sovereign wealth fund concept would enable AI-driven economic growth benefits to reach citizens not invested in financial markets

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Political Calculus Behind Public Ownership in AI Push

The timing of these discussions reveals strategic positioning amid intensifying AI regulation pressures. OpenAI delayed the full public launch of GPT-5.6 just six days before news of the stake proposal emerged, after Commerce Secretary Howard Lutnick reportedly warned Altman against releasing the model without prior approval

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. The Trump administration has already established precedent for government equity stakes, having taken a 9.9% stake in Intel and demanding that Nvidia and AMD hand over 15% of their China chip revenue

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. Altman has held active talks with Trump administration officials including Treasury Secretary Scott Bessent and Lutnick, as well as Senator Bernie Sanders

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Source: Mashable

Source: Mashable

Growing Anti-AI Sentiment Drives Industry Response

AI companies are confronting what industry observers describe as an "AI hate wave," with recent polls showing 70% of Americans oppose AI data centers in their communities and half express more concern than excitement about AI technology

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. Voters across party lines want tighter AI regulation, creating political pressure that could impact elections

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. OpenAI first proposed creating an AI wealth fund in spring, stating that an "AI-led future" would likely require "new approaches that give people durable stakes in the systems creating value"

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Bernie Sanders Demands Larger Share for Economic Equity

Bernie Sanders has pushed back forcefully against Altman's 5% figure, proposing legislation that would require leading AI firms to pay a one-time 50% tax on their stock to create a $7 trillion sovereign wealth fund

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. Sanders told the Associated Press that "the public has got to have a significant seat at the table to make sure that terrible things do not happen to ordinary people"

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. His American AI Sovereign Wealth Fund Act would provide enough to pay every American a $1,000 annual dividend

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. Sources familiar with discussions between Sanders and Altman indicate they remain "far apart" on appropriate public ownership levels

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Source: TechSpot

Source: TechSpot

IPO Plans and Investor Confidence Considerations

Both OpenAI and Anthropic have confidentially filed for initial public offerings, making the timing of a US government stake particularly significant

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. A government shareholding negotiated before listing would establish Washington's position ahead of the ownership expansion that accompanies a public float . Forrester principal analyst Indranil Bandyopadhyay noted that a government stake "materially changes the investor calculus" of an IPO, with some institutional investors viewing it as a de-risking signal while others might price it as a governance concern

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. Critics suggest the move could artificially inflate AI company valuations or put taxpayers on the hook if the AI boom turns into a bust

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National Security Concerns Shape AI Industry Oversight

Citing national security concerns, President Trump recently ordered a new government review process for frontier AI models before release

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. The Pentagon designated Anthropic a supply chain risk earlier this year, and the administration unexpectedly applied export controls to Anthropic's latest models last month, forcing the company to pull them from the market

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. These interventions have sparked uncertainty about the future prospects of US AI on the world stage

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. The increasingly hands-on approach from Washington signals that AI companies face a challenging regulatory environment regardless of whether equity-sharing arrangements materialize. Any deal would likely require an act of Congress to implement the mechanisms allowing the US to take stakes in AI companies

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