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ChatGPTOpenAI, the maker, is in “early talks” with the Trump administration about giving the government a 5% ownership stake in the company, Financial Times reports. I mentioned on Thursday, citing two anonymous sources with knowledge of the matter.
CEO Sam Altman’s proposal reportedly calls for OpenAI to allocate 5% of its shares to a US sovereign wealth fund, a type of state-controlled investment. With OpenAI’s current valuation of $852 billion, 5% of it would be priced at a $42 billion buyout by the US government.
Under Altman’s plan, other AI giants like Google, Meta, and Anthropic would do the same, but it’s unclear whether they’d be interested. OpenAI did not respond to a request for comment.
There is no guarantee that the government will make such a deal. But if the plan goes ahead, it would give OpenAI a much-desired financial and reputational boost amid growing criticism of AI.
The move could also allow OpenAI to ease political and regulatory pressures as the company faces stricter government oversight and restrictions on rolling out models as it prepares for a public offering. artificial intelligence company, Along with its Anthropic rivalHe was Take steps gradually To make an initial public offering, allowing anyone to buy shares.
While Altman may try to improve his relationship with Washington and keep the company’s IPO plans on track, the deal could also artificially inflate the value of AI companies in the eyes of Wall Street — or put taxpayers on the hook for bailing them out if the AI boom turns into a bust.
What is a public wealth fund?
A theoretical AI-based sovereign wealth fund would give the government some “skin in the game,” so to speak, and return some of the “upside” of the AI boom to the government, which it could, according to OpenAI, share with all of us.
Take the Alaska Permanent Fund, for example. The Alaska state government takes up to 25% of the money it earns from the oil and mineral industries (drilling, leasing rights, etc.) and invests it in the stock market. Then, each year, the state deducts a check to full-time Alaska residents from the fund’s investment proceeds.
Last month, Senator Bernie Sanders proposed a proposal for a public wealth fund in the United States New legislation This would make the United States get a 50% share, writing In the New York Times: “Since artificial intelligence is built on humanity’s collective knowledge, the wealth it generates should benefit humanity.”
Right now, AI companies aren’t making money — they’ve spent a lot more on data center and computing infrastructure than they’ve made through subscriptions. The idea is that if AI becomes profitable in the future, the financial success should be shared with everyone, not just technology CEOs.
OpenAI said in a statement that it is a public wealth fund based on artificial intelligence April Policy PaperIt could have returns “distributed directly to citizens” and managed to ensure that AI does not exacerbate economic inequality.
What is the calculus for the AI industry?
The push for a government stake could endear Altman and the company to administration officials, who have increasingly called for more control over the AI industry in recent months. Citing national security concerns, President Trump recently said He ordered a new government review process For leading new AI models before they are released.
Some critics see this move as an attempt to put the government in trouble before the AI industry goes into decline, effectively creating a kind of protection before the bailout.
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If passed, the government’s stake in OpenAI “fundamentally changes investor calculus” for the IPO, said Indranil Bandyopadhyay, principal analyst at Forrester. “Some institutional investors will view this as a signal to de-risk; others will price it as a drag on management.”
A potential 5% stake would also be expensive and require congressional approval, making a deal less likely. Ed Zitron, writer Where is your ed newsletter and Best offline podcastThe $42 billion cost, while American households face record costs of living, could make the move “incredibly unpopular,” he told CNET.
“OpenAI is desperate and has been brainstorming ideas for sovereign wealth funds and government investments for more than a year,” Zitron says. “This is just another sign that the company has no idea what to do other than beg people for money.”
