OpenAI and the Trump administration are in ongoing talks about a government stake in the AI startup, according to reports. The negotiations, which have been underway for over a year, could result in the company handing over shares to the government to fund a 'Public Wealth Fund' that would distribute money directly to American citizens. No formal terms have been set, and discussions are expected to move forward quickly, as per CNBC. The Trump administration already holds stakes in tech firms like Intel and IBM, and Senator Bernie Sanders has expressed support for the idea, planning to introduce the 'American A.I. Sovereign Wealth Fund Act' soon. The bill would impose a one-time 50 percent tax on shares of major AI companies, granting the government voting rights and board seats. Returns would be distributed to citizens as direct payments. The proposal aims to ensure that the wealth generated by AI benefits the broader public rather than a small group of tech billionaires. OpenAI and Anthropic have both considered similar funds, with OpenAI seeking a political shield against future regulation through its close ties to the government before its IPO. The Trump administration could also use the arrangement to exert influence over a key industry without congressional approval. The potential government stake raises concerns about dependency, echoing the 2008 financial crisis where 'too big to fail' companies received public bailouts. If the government holds stakes in AI firms, it would have a direct incentive to step in with taxpayer funds if things go wrong. OpenAI and Anthropic are growing rapidly but still burning through significant cash, with their long-term viability and profitability remaining uncertain. The idea of a government rescue fund was previously floated by OpenAI’s CFO Sarah Friar in late 2025, though she quickly withdrew the suggestion. Altman emphasized that the market, not the government, should handle any potential failures of the company. At the same time, OpenAI lobbied the White House for support, including grants and loans, to expand industrial capacity and resilience. These developments highlight the growing interest in shaping AI policy through public-private partnerships.
Source: thedecoder
