ChatGPT-maker OpenAI is in “early conversations” with the Trump administration about giving the government a 5% ownership stake in the company, the Financial Times reported 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 equity to a US sovereign wealth fund, a type of state-controlled investment. With OpenAI’s current $852 billion valuation, 5% of that would price out at a purchase of $42 billion for the US government.
Under Altman’s plan, other AI giants like Google, Meta and Anthropic would do the same, but it’s unclear if they would be interested. OpenAI did not respond to a request for comment.
There’s no guarantee the government will make such a deal. But if the plan goes forward, it would give OpenAI a much-desired financial and reputational boost amid growing criticism of AI.
The move could also let OpenAI ease political and regulatory pressure as the company faces tighter government oversight and constraints on model rollouts while preparing to go public. The AI company, alongside rival Anthropic, has been gradually taking steps to make an initial public offering, allowing anyone to buy shares.
While Altman could be trying to smooth 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 a bailout if the AI boom turns into a bust.
What is a public wealth fund?
A theoretical AI sovereign wealth fund would give the government some “skin in the game,” so to speak, and return some of the “upsides” of the AI boom to the government, which, according to OpenAI, it could share with all of us.
Take the Alaska Permanent Fund, for example. The Alaskan state government takes up to 25% of the money it earns from the oil and mineral industries (for example, drilling and leasing rights) and invests it in the stock market. Then, every year, the state cuts a check for full-time Alaskan residents from the fund’s investment returns.
Last month, Senator Bernie Sanders proposed a public wealth fund in new legislation that would have the US take a 50% stake, writing in The New York Times: “Since AI is built on the collective knowledge of humanity, the wealth it generates must benefit humanity.”
Right now, AI companies haven’t turned a profit — they’ve spent way more in data center infrastructure and compute than they’ve made through subscriptions. The pitch is that if AI becomes profitable in the future, financial success should be shared with everyone, not just tech CEOs.
An AI public wealth fund, OpenAI said in an April policy paper, could have returns “distributed directly to citizens” and be managed to ensure AI doesn’t exacerbate economic inequality.
What’s the calculus for the AI industry?
The push for a government stake could endear Altman and the company to administration officials, who have increasingly demanded more control over the AI industry in recent months. Citing national security concerns, President Trump recently ordered a new government review process for new frontier AI models before they’re released.
Some critics read the move as an effort to put the government on the hook before the AI industry goes south, effectively creating a kind of prebailout cushion.
If enacted, a government stake in OpenAI “materially changes the investor calculus” of an IPO, said Indranil Bandyopadhyay, Forrester principal analyst. “Some institutional investors will view this as a de-risking signal; others will price it as a governance overhang.”
A potential 5% stake will also be expensive and require congressional approval, making a deal less likely. Ed Zitron, writer of the Where’s Your Ed At newsletter and the Better Offline podcast, told CNET that, while US households are facing record costs of living, the $42 billion price tag could make that move “incredibly unpopular.”
“OpenAI is desperate and has been throwing out ideas of a sovereign wealth fund and government investments for over a year,” Zitron says. “This is just another sign that the company has no idea what to do other than beg people for money.”
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