Sanders Proposes Bill Forcing Major AI Firms to Cede 50% Equity to Public Fund

WASHINGTON — Senator Bernie Sanders on June 1 announced forthcoming legislation that would require major artificial intelligence companies to transfer 50% of their equity into a federally managed sovereign wealth fund designed to distribute the financial gains of AI to the American public.

The proposal, outlined in a New York Times op-ed, is titled the American AI Sovereign Wealth Fund Act. It specifically targets leading firms like OpenAI, Anthropic, and xAI, aiming to reshape the ownership structure of the rapidly growing industry.

Unlike a traditional tax on profits or revenue, the Sanders proposal calls for a one-time, mandatory transfer of company stock. This approach is designed to give the public a direct ownership stake, regardless of whether the companies are currently profitable. According to the senator’s plan, the federal government would not only hold the equity but also gain corresponding voting shares and equal representation on each company’s board of directors.

In his op-ed, Sanders argued that this radical restructuring is justified because AI technologies are built upon the collective knowledge, language, and data generated by the American people over generations. “If passed, this legislation would do two crucial things,” Sanders wrote. “First, it would give the public a direct role in determining the future of this technology… Second, this legislation would guarantee that the trillions of dollars potentially generated by AI are used to improve the lives of all of us.”

The proposed American AI Sovereign Wealth Fund would use the dividends and value generated from its equity holdings to make direct cash payments to U.S. citizens. As the fund grows, Sanders indicated that its proceeds could also be used to support broader public goods, including healthcare, education, and housing. The senator pointed to existing models as precedent, such as Norway's massive sovereign wealth fund built on oil revenue and Alaska's Permanent Fund Dividend, which distributes oil royalties to residents annually.

This proposal is not the first time Sanders has targeted wealth concentration stemming from technological advancement. The Vermont senator has previously floated the idea of a “robot tax” on companies that replace human workers with automation and, alongside Representative Ro Khanna, proposed a 5% annual wealth tax on billionaires. The AI equity transfer represents his most direct attempt to socialize the gains of a specific, high-growth industry.

By securing board seats and voting power, the government would gain formal authority to block corporate decisions deemed harmful to the public interest. This move is aimed at what Sanders calls a “handful of Big Tech oligarchs” who currently control the development and deployment of AI. However, the initial proposal leaves several key questions unanswered. The op-ed did not address the significant environmental impact of AI, such as the immense energy and water consumption of data centers. The full legislative text, which Sanders said would be unveiled in the coming weeks, is expected to provide more detail on the specific mechanics of implementation and spending priorities.

Industry response has been muted as stakeholders await the formal introduction of the bill, but the concept represents a fundamental challenge to the venture capital-fueled model that has defined the tech sector. A mandated 50% equity dilution would dramatically alter the financial calculus for founders, employees, and investors, potentially chilling private investment in the U.S. AI market.

While the populist appeal of distributing AI wealth is clear, the proposal's mechanics present a profound challenge to established corporate finance. Forcing a 50% equity transfer would fundamentally rewrite the rules of capital formation. In our experience, investors commit capital with the expectation of a return based on a predictable ownership structure. Introducing the government as a mandatory 50% shareholder post-formation would likely deter the very venture capital that fuels innovation. This isn't just a tax; it's a redefinition of corporate ownership that could have far-reaching consequences beyond the AI sector. While the bill is unlikely to pass in its current form, it signals a significant shift in the political conversation that business owners must monitor. For companies navigating the complex landscape of fundraising in a shifting regulatory environment, proactive planning is essential. Our experts specialize in capital raising and investor strategy to help companies secure their future, and you can learn more about how C&S Finance Group LLC at csfinancegroup.com can help prepare your business for such policy shifts.

With the full text of the American AI Sovereign Wealth Fund Act expected in the near future, business leaders, investors, and policymakers will be closely watching for the details. The bill’s official introduction will mark the beginning of a major legislative debate over who should own and profit from one of the most transformative technologies of the 21st century.