Washington Targets Half of Big AI

A new Bernie Sanders plan would let Washington seize half of big AI companies and turn them into a permanent welfare machine in the name of “free” $1,000 checks.

Story Snapshot

Sanders’ American AI Sovereign Wealth Fund Act would grab 50% of major AI firms through a one-time stock tax.
The bill would lock in federal voting power over leading tech companies and keep government ownership at 50% over time.^[1]
A new commission, not voters or markets, would steer AI by using those shares to block corporate decisions.^[7]
Sponsors promise possible $1,000 yearly checks for every American, but critics warn of lost innovation, jobs, and freedom.^[3]

Sanders’ AI Plan: Massive Stock Seizure Sold as “Free Money”

Senator Bernie Sanders has unveiled the American AI Sovereign Wealth Fund Act, a bill that would force the largest artificial intelligence companies to hand over half their value to the federal government in the form of stock.^[7] Instead of taxing profits, the bill imposes a one-time 50 percent tax paid in shares, immediately transferring a huge ownership stake in major AI firms into a government-run fund.^[1] Sanders argues this wealth was “built on stolen public data” and must be reclaimed for the people.^[13]

Under the plan, any qualifying AI business would be pulled into this new sovereign wealth fund and diluted until Washington owns half of it.^[1] Reports say the bill even lets the government tax new shares in the future so its ownership never falls below fifty percent.^[1] In plain terms, if these companies grow, Uncle Sam automatically grabs more stock to keep control, no matter what existing shareholders or workers want. Critics see this as a direct challenge to basic property rights and free markets.

How the “AI Wealth Fund” Would Work and Who Really Runs It

Sanders’ office says the seized stock would be pooled into a national AI sovereign wealth fund estimated at around seven trillion dollars based on current valuations.^[7] A five percent annual dividend from that fund could then be used to cut roughly one-thousand-dollar checks to every man, woman, and child in America each year.^[3] Sanders frames this as the public finally “sharing the wealth” from a technology revolution, while progressives pitch it as a new model of permanent social spending funded by private enterprise.^[7]

Control of this giant pool of assets would sit with a new body called the Independent Commission for Democratic AI.^[6] This seven-member commission would be nominated by the president from names picked by Congress and confirmed by the Senate.^[7] The commission would hold voting shares in the AI firms and use them to block corporate decisions it claims “hurt the American people.”^[6] That means political appointees, not founders, engineers, or shareholders, could veto business choices about hiring, research, speech rules, and product design.

Breakups, Bureaucrats, and the Threat to Innovation

The bill goes well beyond taxes and checks; it also forces structural changes on the tech sector. Large companies that run both AI and non-AI businesses would be required to split those operations so the government can target and own the AI side directly.^[6] That could hit giants like Nvidia, Google, Microsoft, Amazon, and even Elon Musk’s ventures, which often mix AI with cloud, hardware, or space businesses.^[3] Breaking up integrated firms in this top-down way risks higher costs, slower innovation, and confusion for workers and investors.

The legislation’s fine print is also broad enough to sweep in many companies that do not think of themselves as “AI firms” but use advanced computing or data tools.^[1] Analysts warn that taxing gross activity instead of profits, and forcing stock issuance regardless of current ownership, would punish fast-growing but still unprofitable innovators.^[1] When Washington can dilute any firm that crosses an arbitrary “AI” line, entrepreneurs may move research overseas, scale back hiring, or avoid the United States entirely to escape permanent government co-ownership.

What $1,000 a Year Really Buys—and What It Might Cost

Sanders and his allies sell the plan with a simple headline: up to one thousand dollars a year for every American, funded by AI, not higher income taxes.^[3] His team says a five percent draw from a seven trillion dollar fund could cover those payments while leaving room over time to fund government-run health care, education, and housing.^[7] The pitch is that AI will generate “trillions,” and Washington just has to tap that stream once to pay for a long wish list of progressive programs.^[5]

Sen. Bernie Sanders is proposing a bold plan to tax major AI companies and create a $7T public fund that could pay Americans up to thousands a year in dividends. Should the public get a direct cut of AI’s booming profits? 💰🤖https://t.co/Pvp4sh5R8q

— SammyGuru (@sammygurus) June 19, 2026

Conservatives see familiar red flags in this promise of easy money. First, there is no guarantee AI stocks will hold or grow enough to sustain endless checks and new entitlements. Second, once the federal government owns half of a sector, future Congresses can raid that value for whatever agenda they want. Third, the plan normalizes the idea that whenever a new technology succeeds, Washington can seize private companies in the name of “public ownership,” eroding the free enterprise system that built American prosperity.^[14]