Senator Bernie Sanders has proposed the American AI Sovereign Wealth Fund Act, a legislative move to secure public ownership of artificial intelligence. The bill mandates a one-time 50% tax on certain firms, payable in stock rather than cash. This proposal aims to establish democratic oversight and redistribute potential trillion-dollar gains from AI to the public, though some technology experts argue that alternative methods like public-option AI models or energy taxation may better serve the public interest without entangling government with corporate profit.
Why is Bernie Sanders proposing an AI sovereign wealth fund?
Senator Bernie Sanders argues that the future of humanity should not be dictated by a handful of billionaires. Writing in the New York Times on June 1, 2026, the Vermont senator questioned whether a small group of tech leaders should hold power over AI without democratic input. His proposed legislation seeks to create a sovereign wealth fund by acquiring a 50% stake in companies like OpenAI, Anthropic, and xAI.
The strategy has two primary goals, according to Sanders. First, it aims to place the government on company boards to block decisions harmful to citizens. Second, it intends to ensure that the massive economic rewards generated by soaring AI valuations are used to improve the lives of the general public. By taking stock rather than cash, Sanders believes the government can exert direct leverage over the industry.
What are the risks of public ownership in AI firms?
Data scientist Nathan E. Sanders and security technologist Bruce Schneier, co-authors of Rewiring Democracy, caution against the sovereign wealth fund model. They argue that public ownership could entangle the government with corporate interests. If the government holds a significant stake in a company, it may become incentivized to prioritize corporate profits, suppress competition, or overlook worker exploitation to ensure its investment grows.
The authors point to the Norwegian sovereign wealth fund as a cautionary tale. While that fund is the world’s largest, its holdings in oil companies have reportedly inhibited the Norwegian government from taking more aggressive climate action. They argue that a similar conflict of interest could occur in the U.S., where the fiduciary duty to generate wealth might override the government’s role as a public regulator.
Are there better alternatives to taxing AI stock?
Critics of the sovereign wealth fund approach suggest that separating corporate profit from public oversight is more effective. Nathan E. Sanders and Bruce Schneier propose two primary alternatives:
- Energy Taxation: Similar to proposals by Senator Elizabeth Warren, an excise tax on the energy consumption of data centers could force companies to pay for the social disruption caused by their technology.
- AI Public Option: Governments could develop and operate their own AI models using public infrastructure and data. This would provide a competitive baseline for private companies to meet, similar to how public healthcare options function.
The Swiss approach serves as an early model for this strategy. The country has developed “Apertus,” a large language model built by public servants and university researchers using renewable energy and public supercomputing infrastructure.
Frequently Asked Questions
- What is the American AI Sovereign Wealth Fund Act?
- It is a legislative proposal from Senator Bernie Sanders that would impose a one-time 50% tax on specific AI firms, paid in company stock.
- Why do some experts oppose the wealth fund idea?
- Experts argue that government ownership of private firms can create conflicts of interest, where the state prioritizes investment returns over public safety and regulation.
- What is an “AI Public Option”?
- It is a proposal for governments to build and operate their own AI models, creating a public-interest alternative to private, for-profit systems.
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