Sanders Proposes 50% Tax on AI Giants to Fund Public Wealth

Sen. Bernie Sanders has introduced legislation that would fundamentally restructure ownership of America's largest artificial intelligence companies, transferring half their equity to a public sovereign wealth fund in exchange for direct payments to citizens and influence over corporate governance.

The bill, first shared with The Associated Press, would impose a one-time 50% tax on the stock—not cash—of AI companies generating at least $200 million in annual AI-related revenue. Sanders estimates this would create a fund worth approximately $7 trillion, managed by a seven-person independent commission appointed by the president and confirmed by the Senate.

How the fund would work

Unlike traditional taxation, the proposal requires companies to transfer actual shares, making American taxpayers major shareholders in firms racing toward trillion-dollar valuations. The commission would exercise voting rights on those shares to block corporate decisions deemed harmful to the public and advocate for beneficial policies.

Sanders proposes distributing a 5% annual dividend from the fund, which would provide more than $1,000 per year to every American. Additional returns would finance healthcare, education, and housing programs. The Vermont independent argues that because the public would own equity rather than simply receiving tax revenue, Americans would not bear losses if AI valuations decline.

"The benefits cannot simply go to the handful of wealthy corporations. They will be shared by the American people," Sanders said in an interview Wednesday.

Why it matters

The proposal arrives as AI companies command unprecedented valuations and public anxiety about the technology intensifies. Roughly 70% of college students view AI as a threat to their job prospects, according to a 2025 Harvard Kennedy School poll. Communities nationwide are pushing back against data center projects over electricity demand and environmental concerns, with states like Ohio and Virginia reconsidering tax incentives they once offered eagerly.

While the concept of public stakes in AI has attracted interest from figures including President Donald Trump and OpenAI CEO Sam Altman, Sanders' approach is far more aggressive. OpenAI proposed a public wealth fund in April, and Anthropic CEO Dario Amodei has written favorably about universal basic income financed by taxes on AI companies. Trump recently mused about government-industry partnership in AI.

But Sanders dismisses these gestures as insufficient. In a meeting with Altman, the two remained "far apart" on the size of any public stake, according to people present. Sanders characterized industry proposals as attempts to "buy off the public" with 5% of profits rather than genuine shared ownership.

Political momentum

The senator plans to make AI ownership and wealth inequality central to his messaging, building on his "Fighting Oligarchy" tour that drew large crowds last year. Other Democratic candidates are adopting similar themes ahead of midterm elections, including Michigan Senate candidate Mallory McMorrow and New York House candidate Alex Bores.

Trump attended an AI-focused session at the G7 summit in France on Wednesday alongside Altman and Amodei, underscoring the technology's prominence in international policy discussions.

The details were first reported by The Associated Press.