Bernie Sanders has proposed a bold plan to create a US sovereign wealth fund by taking 50% stock in AI companies like Anthropic, OpenAI, and xAI. While the goals of democratic control and wealth redistribution are laudable, experts argue that energy taxation and public AI options may be more effective.
The Sanders proposal
In a New York Times op-ed, Sanders asked: "Will the future of humanity be determined by a handful of billionaires who have promoted and developed AI, with virtually no democratic input, who stand to become even richer and more powerful than they are today?" His solution: a sovereign wealth fund that would give the government voting shares and board representation, ensuring public influence and returning economic rewards to citizens.
Potential pitfalls
Nathan E Sanders and Bruce Schneier, authors of Rewiring Democracy, caution that public ownership could entangle corporate profit with public interest. They point to the Norwegian sovereign wealth fund, which holds stakes in oil companies but has not steered them toward environmental policies. Similarly, US public employee pension funds often prioritize wealth generation over public interest.
Energy taxation as an alternative
Senator Elizabeth Warren has proposed an excise tax on data centers' energy use. An AI token tax could also work. These mechanisms allow society to share in AI profits without government ownership.
Public AI option
The authors suggest a public AI option: government-developed and operated AI models under democratic control. This would create a competitive baseline for private AI. Switzerland's Apertus model exemplifies this, offering transparency and sustainability, though not top performance.
Energy taxation and public AI avoid the conflicts of interest inherent in government ownership. They provide straightforward ways for AI companies to pay for social disruption and for governments to shape AI development responsibly.
