WASHINGTON — Senator Bernie Sanders introduced the American AI Sovereign Wealth Fund Act, a legislative proposal that would impose a one-time 50 percent tax on the stock of artificial intelligence (AI) companies. This tax would apply to companies with $200 million or more in annual AI sales.

The legislation specifies that new AI companies reaching the $200 million annual sales benchmark would also be subject to the stock tax. Companies would meet this tax requirement by transferring shares to the government rather than making cash payments. The proposal further requires AI companies with non-AI business operations to legally separate those divisions, ensuring public ownership applies solely to the AI segment.

The act would establish a seven-person independent commission to manage the sovereign wealth fund. The president would nominate commission members, and the Senate would confirm them. This commission would use its voting shares to oppose corporate decisions deemed harmful to the public and to advocate for policies considered beneficial.

Sanders estimates the fund could reach a valuation of approximately $7 trillion based on current market prices. The proposal allocates a five percent annual dividend from the fund to distribute direct payments exceeding $1,000 to each U.S. resident. Revenue generated from fund growth beyond these direct payments would be channeled into public programs, including healthcare, education, and housing.

Sanders said taxpayers would not assume financial liability if AI company valuations decline. "The American people are not going to lose any money, because we are going to be owning half of the stock. We're not buying it. We're getting it," he said. He added, "The benefits cannot simply go to the handful of wealthy corporations. They will be shared by the American people."

Sanders and OpenAI CEO Sam Altman met to discuss the sovereign wealth fund proposal. OpenAI first proposed a public wealth fund in April to provide all citizens with financial participation in AI economic growth. Anthropic CEO Dario Amodei wrote that "Universal basic income could be financed through taxes on relevant companies." Sixty-seven countries, including Norway, China, and the United Arab Emirates, operate sovereign wealth funds.