Washington, Aug 29 (IANS) Proposed US legislation would require certain Artificial Intelligence (AI) companies to transfer a 50 per cent equity stake to a government-managed sovereign wealth fund, according to a new congressional report that warns the measure could face constitutional challenges.
The Congressional Research Service report examines how the government could acquire stakes in private AI companies and distribute the financial gains from rapidly expanding technology across the American population.
The American AI Sovereign Wealth Fund Act would require covered companies to make a one-time transfer of half their equity to the fund, which would be overseen by a seven-member commission.
As the value of the holdings grew, the fund would make direct payments to the public, the report said.
The proposed arrangement would also give the federal government voting rights, representation on company boards and other corporate governance powers.
Companies or shareholders affected by the compulsory transfer could challenge its constitutionality if the legislation became law, the non-partisan congressional research agency said.
The report comes amid discussions in Washington about whether the public should receive a share of the wealth generated by AI and the infrastructure supporting it.
President Donald Trump has discussed possible government equity stakes in private AI companies with industry representatives, according to the report. No details of those discussions had been publicly released as of July.
AI-related investment is projected to exceed USD 1 trillion globally during 2026, including nearly USD 600 billion in the United States.
Amazon, Google, Meta and Microsoft spent an estimated USD 420 billion on AI infrastructure during 2025, according to figures cited in the report.
One investment manager estimated that additional global AI capital expenditure between 2026 and 2030 could reach approximately USD 7.5 trillion. The investments include computing infrastructure, data centres and power systems.
The report cautioned that past technology-driven investment surges were sometimes followed by sharp market corrections with broader economic consequences.
It cited the canal investment boom of the 1830s, British railway expansion during the 1840s, the 1920s and the dot-com boom of the late 1990s.
Several technology companies associated with AI now account for more than 40 per cent of the total market capitalisation of the S&P 500, the report said. These include Nvidia, Alphabet, Apple, Microsoft, Amazon, Broadcom, Meta and Micron.
A major fall in their share prices could reduce household and investor wealth and potentially spread stress across the financial system.
The report also examined concerns that large-scale AI-driven job losses could reduce household consumption and increase defaults involving mortgages, banks and other financial institutions.
It said, however, that there was no evidence as of July of widespread labour-market disruption attributable to AI.
Possible mechanisms for sharing AI-generated wealth include universal basic income, sovereign wealth funds backed by company equity, tax reforms and direct public ownership.
OpenAI and Anthropic have released policy frameworks supporting the broader distribution of prosperity generated by AI, the report noted.
The federal government already uses equity investments, loans, revenue-sharing agreements and special governance rights to support industries considered important to national security.
The report cited an USD 8.9 billion government equity investment in Intel and investments involving quantum-computing and semiconductor companies. It also noted that the United States had received a “golden share” carrying special governance rights as a condition for approving Nippon Steel’s acquisition of US Steel.
–IANS
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