An unusual alignment has emerged in U.S. politics: Senator Bernie Sanders and President Donald Trump have both voiced support for the government to acquire ownership stakes in major artificial intelligence companies, arguing that society as a whole should benefit from the technology's gains.
In an opinion piece for the New York Times, Sanders proposed that the government obtain 50 percent stakes in leading AI firms and establish a public sovereign wealth fund to manage those holdings. Revenues from the fund would be directed to support workers most affected by automation.
What had once seemed largely theoretical appears to be gaining traction. According to reporting by NOTUS, senior U.S. government officials have held preliminary discussions with major AI companies, including Sam Altman, CEO of OpenAI, about companies voluntarily transferring shares to the state. The returns would be used for public purposes, such as dividends for American households.
President Trump reaffirmed interest in the idea on Friday from aboard Air Force One, calling it very interesting and likening it to a partnership with the American people. He added that the administration has been considering government investment in AI companies for more than a year.
The Trump administration points to prior investments as precedent: last year it acquired a 10 percent stake in chipmaker Intel, and this year it bought equity in firms involved in rare-earth mining and quantum computing, including shares in IBM. The Intel investment, made in August of last year, has since been particularly successful: the company’s market value has grown fivefold, turning a $10 billion government investment into an asset now valued at roughly $50 billion.
However, views on government ownership are divided. Critics warn that state stakes can create a “too big to fail” effect that distorts markets and unduly strengthens large firms’ positions. Others fear that public ownership could deter private capital, politicize AI regulation, and expose taxpayer funds to unnecessary risk.
Academic voices highlight broader trends: Nicholas Mulder, a professor at Cornell University, argues we may be witnessing a fourth wave of nationalizations, noting that since 2020 governments have placed roughly $500 billion of assets under state control worldwide — an increase in state involvement not seen since the 1970s. The post-pandemic era’s supply-chain vulnerabilities, trade tensions, and national-security concerns have raised the appeal of government control over strategic industries.
Ken Rogoff, a former chief economist at the International Monetary Fund, warns that governments that fail to secure a role in the AI supply chain could face mass job losses without the tax revenue and institutional capacity needed to manage the social consequences.
Overall, the debate centers on expanding state involvement and its potential social, economic, and market impacts: proponents stress broader social benefits and worker protections, while critics point to market distortions, political risks, and threats to public funds.
Key actors and points
- Bernie Sanders — proposed roughly 50% government stakes and a sovereign wealth fund to support displaced workers.
- Donald Trump — expressed interest; administration has prior tech and strategic-sector investments.
- Sam Altman, CEO of OpenAI — reported participant in preliminary talks with government officials.
- Nicholas Mulder (Cornell University) and Ken Rogoff (former IMF chief economist) — provide context and warnings about expanded state ownership.
(Source: Reuters.)
