Senator Bernie Sanders has taken a significant step toward ensuring that profits from artificial intelligence companies benefit all Americans. Recently, he introduced a groundbreaking piece of legislation known as the American AI Sovereign Wealth Fund Act. This proposal calls for a substantial one-time tax of 50% on stock from the largest AI firms in the United States. The envisioned outcome of this act is the creation of a sovereign wealth fund projected to accumulate a staggering total of around $7 trillion. With this fund, every American citizen could receive annual payments exceeding $1,000.
How will the fund operate? The government’s approach involves collecting equity stakes in leading AI companies while pooling these assets to create a vast public fund. This fund would in turn distribute a mandated annual dividend of 5% directly to American citizens. Based on estimates, the fund’s anticipated value could lead to initial payouts each year that amount to more than $1,000 per person. Any excess revenue generated by the fund could support various public programs aimed at improving healthcare, education, and housing.
Sanders draws a parallel between AI and Alaska’s long-standing practice of distributing profit checks from its oil revenue, starting in 1982. Sanders suggests that AI has the potential to be equally transformative, deserving of public investment and benefit.
Many details are critical to consider, especially the requirement for companies to pay in stock rather than cash. By opting for equity, the legislation circumvents the potential cash flow issues that might inhibit such payments, allowing the government to secure a significant ownership stake in the most valuable AI enterprises. This could establish an unprecedented publicly owned portfolio of tech stocks.
This initiative is not the first time Sanders has targeted the AI sector. Earlier in 2026, he co-introduced the AI Data Center Moratorium Act, aimed at regulating the expansion of AI data centers until regulatory frameworks were established. While that legislation focused on environmental and regulatory concerns, the current one reframes the discussion around public ownership and equitable wealth distribution.
What should investors understand? The proposal for a 50% stock tax on top AI companies presents a historic shift that could transform corporate dynamics in the American marketplace. Should this legislation move forward, it would undoubtedly alter how stakeholders evaluate investments within the AI sector.
Shareholders may face immediate concerns regarding dilution. With the government suddenly holding half of the equity stakes in major AI companies, existing shareholders could see their ownership percentages decrease significantly overnight.
However, it’s crucial to note that the likelihood of this bill passing in its current form remains uncertain. Any proposal that suggests transferring trillions of dollars in wealth from the private sector to a public fund is likely to encounter considerable political challenges.