OpenAI reportedly offers US government 5% equity stake

OpenAI, the artificial intelligence company behind ChatGPT, is reportedly in talks with the White House about a significant equity donation to the U.S. government. The proposal involves offering 5% of the company's shares, a move seen as an effort to mitigate growing regulatory scrutiny and public concerns about the rapid advancement of AI.

Sources cited by the Financial Times suggest that OpenAI CEO Sam Altman has discussed this plan with high-ranking officials, including former President Donald Trump and cabinet members. Altman reportedly believes that sharing the wealth generated by AI through public equity ownership is the most effective approach. Based on OpenAI's valuation of $852 billion in March, a 5% stake would be worth approximately $42.6 billion.

This initiative follows OpenAI's earlier proposal in April for a "Public Wealth Fund." This fund, modeled after Alaska's Permanent Fund which distributes oil revenue to residents, aims to ensure that all citizens, including those not invested in financial markets, benefit from AI-driven economic growth. The plan anticipates other major AI companies making similar equity contributions to the government.

OpenAI and competitors like Anthropic are facing increased regulatory pressure, including government reviews of their latest AI models. Additionally, public opposition is mounting due to concerns about job displacement from AI adoption, the energy demands of large data centers, and cybersecurity risks. The equity proposal could be a strategic move to foster a more favorable public and governmental opinion.

The reported discussions also appear to draw lessons from past interactions, such as Intel's situation last year. After publicly criticizing Intel's CEO over ties to Chinese companies, the Trump administration later supported Intel as a key player in the U.S. semiconductor industry after securing an approximate 10% stake in the company. However, the current OpenAI proposal is in its early conceptual stages, and any actual equity transfer would likely require congressional legislation, with the administration's commitment still uncertain.

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The best way to share the wealth created by artificial intelligence is for the public to own equity in the companies.