Bridgewater Associates, a major hedge fund, has taken a surprising stance in the debate surrounding artificial intelligence, advocating for measures to shield average Americans from potential threats associated with AI while also suggesting ways to distribute the wealth generated by tech giants.
Founded by billionaire Ray Dalio, the firm is known for its somewhat secretive operations in its upscale Connecticut headquarters. It has been engaging with policymakers from both political parties about strategies to counter an AI-driven job crisis, according to reports.
Recently, Bridgewater’s chief investment officer, Greg Jensen, along with CEO Nir Bar Dea, published a detailed essay advocating for urgent policy measures to harness “the full potential of artificial intelligence” while minimizing the risks of societal upheaval and safety hazards.
These ideas have caught the attention of legislators in Washington, sparking informal discussions about the necessity of establishing “citizen equity” in the growing AI industry, a source disclosed.
Among their proposals is a “token tax” related to AI use, which, if implemented at 35%, could generate up to $600 billion by 2030. This revenue could potentially be used to acquire stakes in AI companies for the public, the essay suggests.
This “token tax” approach differs from the proposals for “universal basic income” advocated by tech leaders like Sam Altman of OpenAI and Elon Musk from SpaceX, which suggests a basic financial support system for all citizens from the government. In a Q&A session, Jensen expressed concerns that UBI could give an excessive amount of power to government officials.
“You’d still rely on a bureaucrat to determine how much and when you receive your payment,” Jensen pointed out. “By distributing equity to all citizens, it helps shift power away from politicians and directly to the people.”
Jensen and Bar Dea argued that immediate action is necessary to ensure that everyday Americans can partake in the benefits of the AI revolution.
“Without swift intervention, the challenge of mitigating the dangers posed by AI will become increasingly difficult as the technology continues to spread and the models evolve to enhance their capabilities autonomously,” they noted.
Experts believe that facilitating a smooth transition towards AI adoption could benefit Bridgewater’s investments in the field by reducing potential public backlash and preventing stricter regulations on the industry.
Jeremy Bearer-Friend, a law professor at George Washington University, praised Bridgewater’s initiatives, indicating that having a public stake in AI could enhance safety measures.
“Public equity would allow for more public involvement in traditional corporate governance and improve regulation in the sector,” he said. “An AI equity tax could provide the public with a voice in critical decisions regarding safety.”
Bridgewater suggests that AI is rapidly taking over jobs traditionally held by humans, despite current payroll tax requirements for both workers and employers. The proposed token tax could help alleviate the tax burden on human employees and assist those displaced by AI.
“It seems only logical that we wouldn’t want to favor machines over human workers,” Jensen remarked during an internal Q&A, suggesting the need for a dedicated division within the IRS to manage the new tax.
Jensen further emphasized the need for increased oversight of AI companies that dominate market shares. He mentioned that firms controlling a significant percentage of AI computing power should face regulatory scrutiny akin to that of major banks.
“In a couple of years, OpenAI and Anthropic may command between 35% and 50% of global computing resources. That’s a concerning scenario for society,” he argued. “Would we permit one entity to monopolize such a crucial resource?”
“I’m not generally a proponent of government regulation, but when the stakes are high enough and society is at risk, it’s essential,” Jensen said to an online platform.
Bridgewater also called for a more proactive governmental role in ensuring AI safety, suggesting that regulators regularly conduct in-depth interviews with AI lab personnel regarding safety concerns associated with emerging technologies.
Meanwhile, Bearer-Friend warned against the potential danger of providing AI companies with increased public funding through mandatory government purchases of AI shares.
Cyril Gorlla, CEO of AI startup CTGT, noted that Bridgewater’s proposal to share the benefits of AI and enhance safety could bolster public confidence in AI, potentially fueling growth in the industry. However, he cautioned that implementation, especially regarding the token tax, could prove difficult.
“Jensen rightly pointed out that they need to devise a mechanism for tax collection, but there’s no universal standard for measuring AI usage like we have for utilities,” Gorlla added.
