OpenAI CEO Proposes Government Stake in AI Firm
Sam Altman, the CEO of OpenAI, has reportedly suggested selling a 5% stake in the company to the U.S. government. This move seems aimed at enhancing the relationship with the Trump administration and addressing increasing political criticism over the rapid advancement of artificial intelligence.
Altman believes that allowing the public to hold a financial stake in such a prominent AI company is a way to share the economic rewards that come from innovative technologies. According to reports from The Financial Times, the stakes here are pretty high.
The valuation for this 5% stake could be around $42.6 billion, based on OpenAI’s recent evaluation of $852 billion after funding rounds in March.
If OpenAI reaches its lofty goal of a $1 trillion valuation when it goes public, that 5% could jump to about $50 billion. Of course, this potential valuation depends on market conditions, but it would mark a significant federal stake in a private tech firm.
Furthermore, OpenAI’s proposal encourages other AI players to consider offering similar equity shares to a government-backed investment fund, somewhat inspired by the Alaska Permanent Fund, which invests oil revenues and shares dividends with residents.
It’s still uncertain if competitors like Anthropic, Google, and Meta would agree to such a plan.
Discussions between OpenAI and the Trump administration are in the early stages and might need Congressional approval, as per sources familiar with the negotiations.
Altman has reportedly briefed President Trump and other key figures in the administration about this initiative, including Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.
These talks arise amid a growing skepticism in Washington regarding the AI industry, driven by concerns over large data centers, cybersecurity issues, and the technology’s ramifications for employment.
Both OpenAI and Anthropic are under increased federal scrutiny related to their new AI models, with some Republican leaders and Trump advisors advocating for closer oversight of this rapidly evolving sector.
Altman’s proposal signals a shift in the Trump administration’s approach to industrial policy. Rather than just providing subsidies and tax breaks, they seem interested in acquiring minority holdings in important companies.
For instance, Intel recently disclosed that the federal government had agreed to invest $8.9 billion in exchange for approximately 10% of its shares. The agreement indicates that the government would act as a passive investor without governance rights.
Additionally, the administration is apparently pursuing similar arrangements with MP Materials, a producer of rare earths, along with various quantum computing firms, as part of a broader strategy to boost U.S. capabilities in essential technologies.
Interestingly, last month, Senator Bernie Sanders proposed a massive $7 trillion sovereign wealth fund for government investment in AI firms.
The Post has reached out to OpenAI, as well as to the White House, the Treasury Department, and the Department of Commerce for their thoughts on this matter.
