OpenAI in talks to give Trump administration a 5% stake in the company
OpenAI is negotiating to give the Trump administration a 5% stake in the company, according to sources familiar with the matter. The potential deal would mark a significant move as the AI firm navigates its relationship with the U.S. government.
Background
- OpenAI created ChatGPT and leads frontier AI development. It is restructuring from a nonprofit/capped-profit hybrid into a full for-profit corporation.
- A proposed 5% stake for the Trump administration in a private AI company is unprecedented. It could give the US government board representation or veto power, likely aimed at securing favorable policy, government contracts, or asserting American control over critical AI infrastructure.
- This follows OpenAI CEO Sam Altman's overtures to Trump, including a donation to the inaugural fund. Tech firms are aligning early with the incoming administration.
- The move comes amid scrutiny of OpenAI's safety record, its for-profit conversion, and its reliance on foreign investment (e.g., from the UAE and Japan). A government stake could preempt national security concerns about foreign influence.