OpenAI's Bold Move: 5% Equity Offered to US Sovereign Fund!

OpenAI CEO Sam Altman has put forth a significant proposal to allocate 5% of the company's equity to a U.S. sovereign wealth fund, as reported by the Financial Times. This initiative, which suggests other AI companies might contribute similar stakes, is reportedly aimed at fostering positive relations with the U.S. administration and mitigating potential political backlash against the rapidly growing artificial intelligence sector. While the specifics of the plan are still under discussion, the underlying concept has been gaining traction.

Previous discussions regarding a public AI fund are not new. CNBC reported on similar talks in June, which were subsequently confirmed by then-President Trump. He mentioned conversations about "concepts where pieces could be given to the American public, where the American public essentially becomes a partner with the companies." At that time, however, a specific percentage for the proposed equity stake was not disclosed. The current talks remain preliminary, and it is anticipated that any formal implementation would likely necessitate congressional approval, a factor that could introduce considerable complexity.

The notion of a public AI fund has been a recurring theme in Altman's public discourse, with OpenAI progressively refining its proposals for such a fund's structure. Most notably, in April, OpenAI released a policy paper titled “Industrial Policy for the Intelligence Age.” This document outlined a vision for a public wealth fund that would directly invest in AI laboratories and companies deploying AI technology. The paper suggested that "Returns from the Fund could be distributed directly to citizens, allowing more people to participate directly in the upside of AI-driven growth, regardless of their starting wealth or access to capital."

A more assertive legislative approach was proposed by Senator Bernie Sanders (I-VT) in June. His bill, named the American AI Sovereign Wealth Fund Act, advocated for a one-time 50% tax on the stock of all "systemically important" AI companies. This would encompass entities involved in data centers, infrastructure, and robotics. Under Sanders' proposal, companies like Google and SpaceX, where AI constitutes only a segment of their operations, would have the option to spin off their non-AI related divisions to circumvent this taxation. As of now, Senator Sanders' bill has not advanced to a committee.