Sen. Bernie Sanders has introduced legislation that would impose a one-time tax on certain AI companies, requiring them to transfer equity equal to 50% of their outstanding ownership interests to the federal government. 

According to Reuters, the proposal, known as the American AI Sovereign Wealth Fund Act, is based on Sanders’ argument that the economic benefits generated by AI should be shared more broadly with the public. “Since AI is built on the collective knowledge of humanity, the wealth it generates must benefit humanity,” Sanders said in Senate remarks earlier this month. 

Under the bill, the tax would apply to companies generating more than $200 million in gross receipts from AI-related activities, including AI data centers, computing infrastructure, AI services and advanced robotics. Rather than paying the tax in cash, affected companies would transfer stock or other equity interests to a federally managed sovereign wealth fund. 

Sanders envisions the fund generating annual distributions for Americans while providing the public with a direct stake in the growth of the AI sector. The legislation cites examples of sovereign wealth funds operating in countries around the world, as well as similar concepts that have been discussed by AI companies and industry leaders. 

The proposal also includes requirements aimed at isolating AI businesses from non-AI operations through structural separation rules. Companies would generally have 90 days to comply after becoming subject to the law. 

The measure is likely to face significant debate. Supporters argue it would allow the public to share in AI-driven economic gains, while critics such as Tad DeHaven have raised concerns about government ownership stakesin private companies and the potential conflicts that could arise when regulators also become shareholders.