Trump gets OpenAI to offer US 5% stake, far lower than Sanders' target
OpenAI has proposed giving the U.S. government a 5% equity stake in the company, a move aimed at winning political support. The offer falls far short of Senator Bernie Sanders' earlier push for a much larger government ownership share in the AI firm.
Background
- OpenAI is offering the US government a 5% equity stake in the company, part of a broader push to win political favor as Washington weighs AI regulation. The offer is far smaller than the 25% stake demanded by Senator Bernie Sanders and other critics who want public ownership of frontier AI.
- The proposal comes as OpenAI transitions from a nonprofit to a for-profit benefit corporation—a structural change that requires government approvals and has sparked debate over who should control and profit from advanced AI.
- President Trump's involvement signals a shift: the Biden administration had pursued tougher oversight; Trump's team appears more open to industry-friendly deals, raising questions about how much public interest the deal actually serves.
- Key background: OpenAI's for-profit shift values the company at over $300 billion. A federal stake would give the US some upside and governance influence, but critics say 5% is too small to meaningfully align OpenAI's incentives with public safety.