Senator Bernie Sanders (I-VT) has shifted his public commentary on big tech into formal policy, introducing the “American AI Sovereign Wealth Fund Act.” The legislative proposal reframes how the financial returns of artificial intelligence are distributed, moving away from a traditional cash tax model in favor of a structural asset transfer.
The bill outlines a mechanism designed to establish public equity in the country’s rapidly growing AI sector.
The Mechanics: 50% Equity Transfer
The legislation targets any corporate entity engaged in “systemically important AI activity”—defined to include AI data centers, computing infrastructure, advanced robotics, and core cloud services—provided the firm surpasses an annual gross receipts threshold of $200 million.
- Stock Over Cash: Rather than standard cash payments, the bill implements a specialized excise tax requiring covered firms to remit 50% of their total outstanding equity interest directly to the U.S. Department of the Treasury.
- The Share Dilution: To meet this requirement, companies cannot transfer existing shares held by current founders or venture backers. They must issue brand-new shares to the government. For instance, a firm with 100 existing shares would mint 100 new ones for the Treasury, doubling the share pool and diluting the equity portion of existing private shareholders by half.
- Structural Corporate Splits: For diversified tech conglomerates that manage both AI and traditional operations (such as Alphabet, Microsoft, or Meta), the bill mandates a corporate carve-out. The public’s 50% equity stake would apply exclusively to the isolated AI and data infrastructure divisions, rather than the parent entity’s full portfolio.
The Allocation: A Projected $7 Trillion Public Vehicle
Sanders’ office projects that securing a half-stake in major foundational labs—including OpenAI, Anthropic, and xAI—alongside prominent hardware and infrastructure players, would anchor a public fund valued at an estimated $7 trillion.
Estimated Sovereign Fund Pool: $7 Trillion
Mandated Annual Dividend Rate: 5% of Fund Valuation
Projected Annual Public Payout: $1,000+ Per Citizen
Management of the portfolio would fall under a newly proposed, seven-member Independent Commission for Democratic AI, with commissioners appointed by the President and confirmed by the Senate.
The bill mandates that the commission distribute a 5% annual dividend directly to the American public. In its opening phase, this is modeled to yield a $1,000 annual payout for every U.S. citizen, scaling dynamically alongside the long-term evaluation of the AI market. Any residual capital generated beyond the direct dividend would be allocated toward public infrastructure, housing initiatives, healthcare, and education.
The Balance of Power: Boardroom Representation
Beyond the financial payouts, the legislation uses the public’s 50% equity position to claim active voting rights and establish federal representation on corporate boards.
Under the text of the bill, these appointed board members would work in coordination with the Department of Labor to ensure corporate decisions align with worker welfare, public safety, and fair competition. Sanders articulated the foundational perspective behind the bill during its unveiling:
“The foundation of AI is based on human knowledge and human labor… Every book that somebody has written, every work in mathematics, every poet becomes part of AI. The people themselves who have built AI through their knowledge and work deserve the benefits. So it’s not what the billionaire CEOs want.”
Industry Feedback and Strategic Context
The proposal has drawn swift opposition from venture capital and technology lobbies. Critics, including analysts at the American Action Forum, argue that forcing massive equity dilution could disincentivize private investment and dampen the pace of domestic tech infrastructure building. Others express concern that placing government representatives on competing corporate boards could lead to regulatory capture, making it harder for early-stage startups to breach the market.
Shifting the Policy Debate
While the bill faces steep mathematical odds in a divided, industry-friendly Congress, its introduction right before the upcoming midterms serves a distinct rhetorical purpose.
Rather than waiting for the tech sector to float voluntary wealth-sharing mechanisms or minimal profit pledges, the legislation establishes an explicit, concrete legislative benchmark. The conversation has effectively moved past whether the broader public is entitled to a stake in the AI windfall, transforming into a highly visible debate over the legal boundaries of ownership and corporate governance.
