The proposal comes as the artificial intelligence industry continues to expand and as debates grow over the economic and social effects of the technology. Sanders argues that AI development should involve broader public participation rather than being controlled only by large technology companies.
The American AI Sovereign Wealth Fund Act would impose a one-time 50% tax on the stock of the biggest AI companies in the United States. The collected assets would be transferred into a sovereign wealth fund that would represent a public ownership stake in the industry.
According to a press release from Senator Sanders, the goal of the legislation is to ensure that AI benefits the wider population while addressing concerns related to jobs, privacy, mental health, and democratic oversight. Sanders said, “The foundation of AI is based on the collective knowledge of humanity and the creative work of tens of millions of people.”
A Proposed $7 Trillion Public Fund Linked to AI Companies
The legislation would create a sovereign wealth fund based on the current value of the US AI industry. According to the proposal, the fund could reach an estimated value of $7 trillion after the transfer of ownership shares from major AI companies.
A 5% annual dividend from the fund could provide each American with more than $1,000 per year. The payments would come from the returns generated by the publicly managed fund rather than from direct taxation. The bill describes the fund as a way to distribute wealth created by a public resource.
“The principle is simple: When a public resource generates wealth, the public should share in that wealth,” Sanders said.
Public Oversight Through an Independent AI Commission
The proposed legislation would establish the Independent Commission for Democratic AI to manage the fund in the public interest. The commission would include seven bipartisan members nominated by the President and confirmed by the Senate.
According to the senator’s summary of the bill, commissioners would use voting shares connected to the fund to block policies considered harmful to the American people and support measures aligned with public interests.
The commission would focus on several areas, including worker welfare, public safety, fair competition, environmental sustainability, and financial solvency. Sanders said the future of AI should not be decided only by billionaires and technology executives but should involve workers, parents, teachers, artists, scientists, communities, and the American public.
A Model Inspired by Existing Sovereign Wealth Funds
The idea of using a public investment fund to distribute resource-based wealth already exists in several countries and regions. More than 100 sovereign wealth funds currently operate around the world.
One example cited in the proposal is the Alaska Permanent Fund, created in 1976. The fund invests part of Alaska’s oil revenues and returns annual dividends to residents. Its value was reported at more than $90 billion this year.
The AI Sovereign Wealth Fund proposal applies a similar concept to artificial intelligence, arguing that public participation should accompany the growth of a technology built on collective human knowledge. The bill would place decisions about AI-related wealth distribution under a public framework rather than leaving them entirely to private companies.
