Sanders unveils bill to create AI sovereign wealth fund

Senator Bernie Sanders’ proposal for an AI sovereign wealth fund marks a bold attempt to redefine how the economic gains from artificial intelligence are distributed—a question that will shape the next decade of American prosperity. At its core, the idea challenges the assumption that AI-driven productivity should primarily enrich a narrow cohort of tech elites. By taking a 50 percent stake in the largest AI firms, the legislation implicitly acknowledges that these companies benefit from public data, research infrastructure, and decades of taxpayer-funded innovation. If successful, the fund could redirect a significant slice of AI profits into universal dividends, much like Norway’s oil fund or Alaska’s Permanent Fund. The stakes are high: without such mechanisms, the AI boom risks deepening inequality, concentrating wealth in Silicon Valley while leaving workers displaced by automation with little recourse. The proposal arrives amid growing unease over AI’s economic impact. Studies suggest that generative AI could automate up to 30 percent of current jobs within a decade, yet few policy tools exist to mitigate the fallout. Sanders’ fund would not only provide direct payments but also signal a shift in the social contract around emerging technologies—one where the public, not just shareholders, reaps the rewards of automation. Yet the plan raises thorny questions about feasibility. How would valuations be determined for rapidly evolving AI firms? Could a 50 percent stake stifle innovation by discouraging investment? And would Congress, deeply divided on tech regulation, ever pass such a measure? This legislation also fits into a broader global conversation. The EU’s AI Act and China’s state-led AI strategies already embed varying degrees of public oversight, while the U.S. has lagged in ensuring equitable distribution of AI’s benefits. Sanders’ proposal could pressure policymakers to consider similar models, from data dividends to public AI training pools. The challenge lies in balancing growth with equity—a tension that will define whether AI becomes a tool of liberation or further concentration. For now, the bill remains a provocative thought experiment, but one that underscores an urgent truth: the AI economy cannot be left to markets alone.