Sovereign Wealth Fund for AI Companies Backed by 70% of Americans as Nobel Laureates Warn of Job Losses

Bernie Sanders Proposes Sovereign Wealth Fund to Share AI Economic Benefits

Sen. Bernie Sanders of Vermont introduced legislation in June 2026 calling for AI companies to transfer 50% of their stock to a sovereign wealth fund, a government-run investment vehicle designed to distribute AI-generated economic benefits to all Americans1

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. The proposal arrives as concerns mount over AI-driven economic disruptions, with approximately 70% of Americans surveyed in June 2026 supporting the measure2

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. Sanders' legislation aims to create government oversight of AI companies while ensuring public participation in AI's economic boom as the technology reshapes labor markets and concentrates wealth.

The timing aligns with growing warnings from the scientific community. On July 13, roughly 200 economists and computer scientists, including 16 Nobel laureates, issued a stark alert that AI may become radically more powerful over the next 10 years1

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. Their letter cautioned that AI could bring large-scale job displacement alongside potential gains in living standards, calling for AI use that complements humans and benefits society. These warnings underscore the urgency behind efforts to mitigate disruptive impacts of AI before they fully materialize.

Market Forecasts Show Massive AI Growth Fueling Wealth Concentration

The financial stakes driving this debate are enormous. The US AI market is projected to surge from $173.56 billion in 2025 to $976.23 billion by 2035, while the global AI market expands from $130 billion in 2023 to nearly $1.9 trillion by 20303

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. Wealth has risen 70% since late 2022, with the top 1% capturing a disproportionate share3

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. This concentration fuels arguments for government ownership of AI companies as a path toward equitable economic outcomes.

Sanders' proposal would use a one-time 50% stock tax on large AI companies to build a $7 trillion fund3

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. The sovereign wealth fund model isn't unprecedented globally. Canada, the UK, South Korea, Saudi Arabia and several other countries have already begun introducing AI-focused sovereign wealth funds into their long-term government planning1

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. These nations view such funds as tools to capture economic benefits from AI innovation while buffering their economies from potential harms.

Alaska's Permanent Fund Offers Blueprint but Raises Complex Questions

Within the United States, Alaska's Permanent Fund provides the most relevant template. The $91 billion fund has accumulated oil revenue surpluses since 1976, becoming completely integrated into Alaska's state revenue system1

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. Since 1982, it has distributed annual payments to Alaska residents age 1 and older, with payout mechanisms delivering more than $3,200 per recipient in 2022 and $1,200 set for 20261

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. The fund helps Alaska buffer state finances when oil prices drop, demonstrating how sovereign wealth funds can stabilize economies facing volatile revenue streams.

Yet translating this model to AI companies introduces thorny complications around the valuation of AI firms, governance risks, and how public ownership would actually function3

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. Critical unresolved questions include which firms would qualify, how the US government would hold, vote or trade shares, and how to avoid conflicts and political pressure. There's also the risk that government ownership could distort competition, slow innovation, or push Washington into picking winners and losers in the AI sector.

Trump Administration Takes Different Approach Through Direct Investments

President Donald Trump first floated the concept of a US sovereign wealth fund in February 2025, though his administration has made little progress advancing that specific idea1

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. Instead, the administration has become an active investor across strategic sectors including defense, energy, semiconductors and critical minerals. Since January 2025, it has struck 30 deals totaling $27 billion, including investments in US Steel and Intel1

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. These investments involve buying stock in private companies, allowing the federal government to benefit from dividends and share price appreciation.

In June, Vice President JD Vance signaled White House support for extending this strategy to include government ownership of AI companies1

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. However, income generated from current US government stock holdings returns to general revenues without any specific use defined upfront. No rules or programs currently exist to direct funds from AI investments specifically toward offsetting negative impacts from AI, including those related to job displacement and income levels1

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Analysts Favor Alternative Approaches Despite Public Support

While the sovereign wealth fund concept appeals to many Americans seeking equity in AI's economic boom, analysts generally lean toward taxes, antitrust enforcement, or direct spending instead3

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. The mechanics of implementing Sanders' proposal remain messy once you move past the slogan. Beyond the initial 50% stock transfer, policymakers would need to sort out ongoing governance, investment strategy, and distribution formulas. South Korea is exploring a version of this model, but the United States would be attempting it on a far larger and more contentious scale3

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. Watch whether Congress takes up Sanders' legislation seriously, how the Trump administration positions its own investment strategy relative to the sovereign wealth fund idea, and whether other countries' AI funds deliver measurable economic benefits that could influence US policy. The debate over how to distribute AI-generated economic benefits while preserving innovation is just beginning.