In June 2026, Senator Bernie Sanders (I-Vt.) introduced the American A.I. Sovereign Wealth Fund Act, proposing a radical shift in how major technology corporations are taxed and governed.
The bill argues that artificial intelligence is built on the collective knowledge, creative works, code, and data of all humanity. Therefore, the immense financial wealth and decision-making power generated by AI should belong partially to the public rather than a small group of Silicon Valley executives and venture capitalists.
Core Mechanics of the Plan
1. The 50% Equity Levy
One-Time Stock Tax: Instead of a traditional corporate tax on profits, the federal government would impose a one-time 50% equity tax on qualifying AI companies. The companies would pay this tax by issuing stock directly to the newly created fund.
Threshold for Eligibility: The tax applies to any company generating $200 million or more in annual AI-related gross revenue (spanning AI services, data centers, compute infrastructure, and advanced robotics).
Structural Separation Requirement: Diversified conglomerates (such as Microsoft, Google, Meta, or Amazon) would be legally required to spin off their AI operations into standalone business entities within 90 days, ensuring the government receives ownership stakes specifically in the AI divisions rather than non-AI lines of business.
2. Fund Governance and Public Control
Independent Commission for Democratic AI: The fund—projected to be worth around $7 trillion based on industry valuations—would be managed by an independent, 7-member bipartisan board nominated by the President and confirmed by the Senate.
Voting Rights: Because the fund would hold voting stock, the commission would use its ownership leverage to influence corporate decisions, prioritizing public safety, worker welfare, data privacy, environmental sustainability, and preventing mass technological unemployment.
3. Dividend Payouts to Americans
5% Annual Distribution: The fund would distribute an annual dividend equal to 5% of its total valuation.
Direct Payouts & Social Programs: A significant portion of these proceeds would be distributed as direct, universal dividend checks to every American citizen (estimated at over $1,000 per person annually). Remaining funds would be earmarked to finance universal healthcare, education, housing, and retraining programs for workers displaced by automation.
Author: Saikat Bhattacharya
