Bernie Sanders proposes $7 trillion AI wealth fund funded by new tax

In short: Sen. Bernie Sanders unveiled a plan to tax the biggest AI companies and put the money into a public fund that could pay Americans yearly and influence how those companies are run.

What happened

Bernie Sanders shared details of a new proposal that would create a US “sovereign wealth fund,” which is a large public investment fund (like a national savings and investment account). The fund would be financed with a one-time 50 percent tax on the stock of the largest AI companies, according to reporting cited by Ars Technica.

The tax would apply to any AI company with at least $200 million in annual AI sales. New AI firms would also be taxed once they reach that level. Sanders estimated the fund could reach about $7 trillion.

Sanders said the fund could generate “hundreds of billions of dollars” each year. That money would go to direct payments to Americans and to public programs like health care, education, and housing. He estimated annual dividends could be more than $1,000 per person if the fund returns about 5 percent per year.

The plan also aims to give the public more say in AI companies. A new bipartisan Independent Commission for Democratic AI would oversee the fund. Using voting shares (like shareholder votes in a company), the commission could block corporate decisions it believes could harm the public.

Why it matters

AI companies are making more money and gaining more influence, and many people worry about job losses and other harms. Sanders is proposing a direct way for the public to share in the financial gains and to have a seat at the table (like having votes in how a company is run). The plan faces long political odds, and the AI industry and some Republican leaders are already criticizing it.

Source: Arstechnica