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From Daily Star · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • OpenAI has discussed offering the U.S. government a 5% stake ahead of its planned IPO, according to reports.
  • The AI company also proposed that other U.S. AI firms give Washington similar stakes.
  • This move follows public backlash over AI's potential job displacement and increasing government regulation of the technology.

OpenAI, the creator of ChatGPT, has reportedly discussed granting the U.S. government a 5% stake in the company as it prepares for its initial public offering (IPO). The proposal, detailed in a Financial Times report citing sources familiar with the talks, suggests that other leading U.S. artificial intelligence firms would also be asked to offer similar equity to Washington.

Say whatever you want about Mr. Trump โ€“ but he would certainly change things in the White House quite a bit.

โ€” Barack ObamaObama's past joking remark about Trump's potential impact on the White House.

This initiative comes at a time when AI companies are facing intense scrutiny in Washington over the potential misuse of advanced AI models and concerns about whether the public will truly benefit from the industry's massive valuations. The move could be an attempt by OpenAI to preemptively address regulatory concerns and appease an administration that is increasingly active in shaping the AI landscape.

Public backlash in the U.S. over AI's potential to cause economic disruption, including widespread layoffs, has intensified. A Reuters/Ipsos poll indicated that half of Americans fear AI could lead to job losses in their households. This proposal might serve to mitigate such fears and foster goodwill with policymakers.

Half of Americans fear that the rise of AI could put them or someone in their household out of work, according to a Reuters/Ipsos poll published in June.

โ€” Reuters/Ipsos pollHighlighting public concern about AI's impact on employment.

The structure suggested by OpenAI executives reportedly mirrors the Alaska Permanent Fund model, where a state-owned corporation uses resource revenue to pay annual dividends to residents. OpenAI CEO Sam Altman has allegedly discussed this proposal with key figures, including former President Donald Trump, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent. The report also notes that a Trump administration request previously led OpenAI to delay the release of its latest AI model, GPT-5.6, highlighting the administration's influence.

Expect other jurisdictions to demand analogous arrangements as a condition of market access and expect enterprise buyers in Europe and Asia-Pacific to reassess data sovereignty and neutrality assumptions about US model providers.

โ€” Indranil BandyopadhyayAnalyst's prediction on international reactions to the proposed government stake.
DistantNews Editorial

Originally published by Daily Star. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.