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OpenAI proposes 5% stake to Trump administration to ease Washington pressure: Report

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Why This Matters

OpenAI's proposal to offer a 5% stake to the U.S. government highlights the growing intersection of AI development and national interests, aiming to mitigate political and security concerns while sharing AI's economic benefits. This move could set a precedent for increased government involvement and oversight in the AI industry, impacting innovation and competition. For consumers, it signals a potential shift towards more regulated and publicly accountable AI technologies.

Key Takeaways

OpenAI has proposed handing the U.S. government a 5% stake in the company, the Financial Times reported Thursday, as the artificial intelligence startup seeks to defuse mounting political pressure in Washington.

A 5% holding would be worth roughly $42.6 billion, after the AI lab closed a record-breaking funding round in March at a post-money valuation of $852 billion.

OpenAI CEO Sam Altman argued that giving the public a financial interest in the company is the best way to share the upside of AI, the FT reported, citing two people familiar with the talks.

Altman suggested a stake of that size in early discussions with the Trump administration, as part of a broader arrangement under which Washington would hold 5% of each of the leading U.S. AI developers via a government vehicle, according to the report.

The proposed arrangement envisions other U.S. AI companies, such as Anthropic, Google and Meta , ceding similar stakes to the government through a sovereign wealth fund vehicle, the FT said. It is not clear whether any of these groups would agree to OpenAI's proposal.

The White House, OpenAI, Anthropic, Google, and Meta did not immediately respond to CNBC's requests for comments.

Pressure has been mounting on major U.S. AI firms as Washington grows increasingly wary of cybersecurity vulnerabilities associated with their models and rising competition from Chinese open-source models that are proving to be almost as capable and significantly cheaper than some of the top American models.

Anthropic had disabled access to its most advanced Mythos and Fable models last month to comply with an export control directive from the government. On Tuesday, the company behind the Claude AI platform said it was cleared to restore access to the models after taking steps to resolve policymakers' safety concerns.