Sanders Shakes Up AI: Radical Plan Proposed for Public Ownership of AI Companies

Senator Bernie Sanders has unveiled a comprehensive legislative proposal aimed at fundamentally reshaping the economic landscape surrounding artificial intelligence (AI) by mandating a significant transfer of wealth and power from the industry to the American public. This initiative seeks to establish a sovereign wealth fund, estimated to reach nearly $7 trillion, which would be financed through a one-time 50% tax on the stock of the largest AI companies. Sanders projects that this fund could generate hundreds of billions of dollars annually, facilitating direct payments to Americans and supporting crucial public programs in areas such as healthcare, education, and housing.

“The benefits cannot simply go to the handful of wealthy corporations. They will be shared by the American people,” the independent Vermont senator stated. The proposal delineates that the 50% stock tax would apply to AI companies achieving $200 million in annual AI sales, with new companies reaching this benchmark also subject to the levy. Crucially, the legislation mandates companies to transfer stock rather than cash, effectively positioning the American public as a major shareholder in the nation's leading AI firms.

Central to the fund's management would be a seven-person independent commission, nominated by the president and confirmed by the Senate. This commission would wield significant influence, utilizing its voting shares to “block decisions that hurt the American people and to push for policies that help them,” according to the bill summary. Sanders proposes that a 5% annual dividend from the fund would provide direct payments of over $1,000 to every American. Furthermore, as these companies grow, the gains would be allocated towards public goods like education, housing, and health care. Sanders emphasized that taxpayers would not bear any losses should AI company valuations decline, stating, “We’re not going to lose any money, even if there is a bust in the bubble.”

While the concept of public ownership in AI has garnered interest from a diverse array of figures, including former President Donald Trump and OpenAI CEO Sam Altman, Sanders’ proposal distinguishes itself through its aggressive scope. It calls for public ownership of half of the largest AI companies and direct influence over corporate decision-making, a significantly bolder approach than suggestions from figures like Trump, Altman, or Anthropic CEO Dario Amodei, who have also mused about government stakes or financing public goods through AI profits. Sanders noted the stark difference: “I think people like Sam Altman and Trump (who) may be sympathetic to this are saying: ‘Okay, look, we’re making zillions of dollars so we’re going to be nice guys and maybe we’ll buy off the public. We will give 5% of our profits back into the government.’ That’s not what we’re talking about. What we’re talking about are two very different things.”

Sanders plans to integrate AI ownership and wealth inequality into his