Sanders proposes $7 trillion AI wealth fund via 50% tax on major firms

Senator Bernie Sanders has introduced sweeping legislation that would impose a one-time 50 percent tax on the stock of major AI companies to fund a sovereign wealth fund worth an estimated $7 trillion, according to details first reported by AP News.

The proposal targets any AI firm generating at least $200 million in annual AI-related revenue. Sanders estimates the fund would generate hundreds of billions of dollars annually, distributed as direct payments to Americans and funding for healthcare, education, and housing programs. Individual Americans could receive more than $1,000 per year in dividends based on a 5 percent annual distribution rate.

Why it matters

This represents the most aggressive government intervention proposal yet in the AI industry, going far beyond voluntary benefit-sharing ideas floated by some AI executives. The legislation would fundamentally reshape the relationship between AI companies and the public, establishing precedent for government control over transformative technologies. Whether it gains traction will signal how seriously lawmakers take concerns about AI wealth concentration and job displacement.

Public control over AI decisions

Beyond financial distributions, the legislation includes a governance mechanism that would give Americans direct influence over corporate AI decisions. A seven-member Independent Commission for Democratic AI—nominated by the president and confirmed by the Senate—would oversee the fund and hold voting shares in the taxed companies.

This commission could block corporate decisions deemed harmful to the public interest. Sanders framed this oversight as essential protection: "The public has got to have a significant seat at the table to make sure that terrible things do not happen to ordinary people, and that in fact, AI benefits ordinary people, not hurts them."

The legislation would also require companies to separate their AI operations from non-AI businesses, a provision that could affect firms like Elon Musk's xAI, which has merged with X and SpaceX.

Industry and political resistance

AI company leaders have shown limited enthusiasm for the proposal. In a meeting with Sanders, OpenAI CEO Sam Altman remained "far apart" from the senator on appropriate public ownership levels, according to sources present. Sanders characterized more modest proposals from executives as inadequate attempts to "buy off the public" with token profit-sharing.

David Sacks, former AI czar in the Trump administration, criticized the plan as "straight up confiscation of property" that would set "a terrible precedent," though he acknowledged having "sympathy" for Sanders' underlying concerns.

With Republicans controlling Congress and generally favoring AI industry interests, the legislation faces steep odds without presidential support. President Trump has discussed government stakes in AI firms but appears aligned with voluntary approaches rather than mandatory taxation.

Sanders acknowledged his bill serves primarily as a conversation starter about public benefits from AI amid growing concerns about job displacement and corporate control. "We think this is the best that we could do at the moment, and it's certainly a major, major, major step forward from giving unilateral and total power to a handful of multi-billionaires," he said.

Details of the legislation were first reported by AP News and The Hill.