OpenAI Floats 5% Equity Stake to US Government in Bid for Regulatory Alignment

OpenAI CEO Sam Altman has proposed a novel arrangement with the US government that would see the AI company transfer approximately 5% of its equity to a government-linked investment vehicle, according to sources familiar with the discussions.

The proposal, which has been circulating among policymakers in Washington, would create a structure modeled on the Alaska Permanent Fund, where a portion of the state's oil revenue is set aside in a sovereign wealth fund that benefits all residents. In OpenAI's case, the fund would distribute returns from the company's growth to American taxpayers.

"This is about aligning incentives," Altman said in a closed-door meeting with Senate staffers last week, according to a person who was present. "By giving the American public a direct stake in our success, we create a shared interest in responsible AI development."

The move is widely seen as a strategic bid to head off more aggressive regulatory measures being debated in Congress. Several proposed bills would impose strict licensing requirements on frontier AI models, require safety testing before deployment, and establish a new federal AI oversight body.

Critics argue that the proposal does not go far enough. "A 5% equity stake gives the government minority influence at best," said Senator Elizabeth Warren in a statement. "We need binding safety regulations, not symbolic profit-sharing arrangements."

“A 5% equity stake gives the government minority influence at best. We need binding safety regulations, not symbolic profit-sharing arrangements.”

— Senator Elizabeth Warren

OpenAI's proposal also includes commitments to independent safety audits, transparent deployment reporting, and a binding commitment to allocate 20% of its computing resources toward AI safety research. These commitments would be codified in the agreement with the government.

The discussions come as OpenAI faces increasing scrutiny over the pace of its AI model releases and the potential societal risks of advanced AI systems. The company recently paused the rollout of its latest reasoning model after internal safety reviews flagged concerning capabilities.

Legal experts note that the proposal would require congressional approval to establish the investment vehicle, making it unlikely to pass before the 2026 midterm elections. However, the proposal has sparked a broader conversation about how the public should benefit from AI-driven economic growth.

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