Senator Bernie Sanders introduced a proposal Tuesday that would slap a 50% equity tax on artificial intelligence laboratories. The revenue would flow into what he’s calling an American AI Sovereign Wealth Fund — a public investment vehicle meant to give ordinary citizens a direct stake in the industry’s gains.
How the tax would work
The Vermont independent hasn’t released full legislative text yet, but the core idea is straightforward: any AI lab operating in the U.S. would owe half of its equity to the government. That equity would then be pooled into a sovereign wealth fund, similar to funds run by Norway or Alaska’s Permanent Fund, but focused solely on AI-driven returns. The fund’s earnings would eventually be distributed back to Americans, though Sanders hasn’t detailed the payout mechanism.
Why Sanders is targeting AI labs
The senator has long argued that the tech industry concentrates wealth at the top. AI, he says, could supercharge that trend if left unchecked. By taking a direct ownership stake, the fund would ensure that the public — not just venture capitalists and corporate executives — shares in the windfall. The proposal is also meant to reshape industry dynamics: labs that resist the tax might face pressure to relocate or restructure, potentially curbing monopolistic tendencies.
Potential impacts on the AI industry
The 50% equity tax is unprecedented in tech policy. If enacted, it would force AI startups and giants alike to reassess their ownership structures. Early-stage labs, already burning cash on research, might struggle to attract venture capital if a large chunk of equity is earmarked for the government. Established players like OpenAI and Anthropic would face similar trade-offs. The plan could also discourage foreign investment, as overseas funds may balk at handing over half the equity. On the flip side, the sovereign wealth fund could become a massive new source of capital for public goods — education, infrastructure, or healthcare — tied directly to AI profits.
Democratizing wealth — or picking winners?
Sanders frames the proposal as a way to democratize wealth distribution. Critics counter that the tax might simply drive AI research offshore or favor big labs that can lobby for exemptions. The fund’s governance is another open question: who manages it, how are investments chosen, and what safeguards prevent political interference? Supporters argue the model is more transparent than corporate tax breaks and stock buybacks, which often enrich shareholders without broad public benefit.
For now, the proposal is a political opening salvo. Sanders will need to rally progressive support while facing fierce opposition from tech-backed trade groups and many Republicans. The bill hasn’t been assigned to a committee yet, and no companion legislation exists in the House. The next concrete step is a likely hearing in the Senate Budget Committee, which Sanders sits on — but a date hasn’t been set.
