OpenAI is reportedly offering the US government a 5% equity stake in the company, valued at roughly $42.6 billion, in what would be one of the most unusual corporate-government arrangements in modern tech history. The Financial Times first reported the early-stage discussions on July 2.

The proposal, championed by CEO Sam Altman, envisions a public or sovereign wealth fund that would distribute AI-generated wealth directly to American citizens. Think of it as the Alaska Permanent Fund, but instead of oil dividends, the returns flow from artificial intelligence.

The numbers behind the pitch

The $42.6 billion figure is derived from OpenAI’s most recent funding round, which closed on March 31, 2026. That round raised $122 billion and pegged the company at an $852 billion post-money valuation.

Altman laid the intellectual groundwork for this move back in April 2026 with a policy paper titled “Industrial Policy for the Intelligence Age.” The paper explicitly advocated for a public wealth fund, arguing that AI’s economic gains shouldn’t concentrate among a handful of shareholders and executives.

The discussions reportedly involve Trump administration officials and bipartisan lawmakers, including Sen. Bernie Sanders. Any formal deal would almost certainly require Congressional approval, which means this is still very much in the “interesting idea on a whiteboard” phase rather than the “lawyers are drafting contracts” phase.

Why this matters beyond Silicon Valley

Critics have already flagged the obvious conflicts of interest. If the US government holds equity in OpenAI, how does it objectively regulate the company? Would federal agencies that oversee AI safety be compromised by the government’s financial interest in OpenAI’s success?

Setting a precedent for the AI industry

If OpenAI successfully negotiates an equity transfer to the federal government, other major AI companies would face immediate pressure to follow suit. The discussions remain conceptual, and the path from early talks to Congressional approval is littered with potential deal-breakers.