David Sacks, the Trump administration’s former AI czar, has publicly criticized Sen. Bernie Sanders’ proposal for the federal government to acquire 50% ownership stakes in leading AI companies. Sacks labeled the plan a 'stupidity tax' and warned that nationalizing AI would accelerate corporate-government fusion, a trend he views as dangerous for American sovereignty and individual freedoms.

In a recent social media post, Sacks argued that AI CEOs have exacerbated public fears by emphasizing apocalyptic job-loss scenarios without highlighting the technology’s benefits. This, he claims, has paved the way for proposals like Sanders’ bill, which he believes could lead to a U.S. version of China’s social credit system. 'AI won’t just moderate posts; it will curate reality — with the ability to rewrite history, enforce ideological conformity, influence policy at scale, mass surveil Americans, and condition the benefits of the many systems it controls on approved behavior,' Sacks wrote.

Trump’s AI Partnership Proposal

Meanwhile, former President Donald Trump has indicated he is open to a federal partnership with AI companies. Speaking to reporters, Trump suggested that such a partnership could involve distributing dividends to Americans, akin to stockholder payouts. 'There’s a concept out there where pieces could be given to the American public, where the American public essentially becomes a partner with the companies,' Trump said. He added that this approach would help alleviate public concerns about AI’s economic impact.

We’re talking about it where the American people can benefit from the success of AI. And by doing that, they’re going to like it better.

Senior U.S. officials have reportedly held preliminary discussions with AI executives, including OpenAI CEO Sam Altman, about the government acquiring shares in AI firms. Altman himself first pitched the idea to Trump in early 2025, with returns potentially funneled to public purposes like household dividends.

Sanders’ proposal, detailed in a New York Times op-ed, argues that government ownership would not only share financial gains with the public but also empower the federal government to block decisions harmful to Americans. 'If the big AI companies continue to grow as rapidly as many analysts expect, then the value of the sovereign wealth fund will grow as well — and the benefits to the American people will grow along with it,' Sanders wrote.

As debates over AI’s future intensify, the focus remains on balancing innovation with safeguards for American workers and sovereignty.