OpenAI proposes 5% government stake worth $42.6 billion to ease Washington pressure

OpenAI has proposed granting the U.S. government a 5% equity stake worth about $42.6 billion, an attempt to turn a regulatory threat into a financial partnership with the Trump administration.

The proposal, reported by the Financial Times, would give Washington a direct ownership position in the $852 billion artificial intelligence startup at a time when federal scrutiny of AI safety, competition, and national security implications is intensifying. Chief Executive Sam Altman has discussed the structure with administration officials as part of a broader effort to secure political buy-in, according to people familiar with the matter.

"The government-as-shareholder model is unprecedented for a private AI company of this scale," said James Okafor, a policy analyst covering technology regulation. "It effectively converts a potential regulator into a stakeholder whose financial interests are aligned with OpenAI's growth."

The 5% stake, valued at $42.6 billion based on OpenAI's most recent $852 billion valuation in a secondary transaction, would make the U.S. government one of the company's largest single shareholders. The structure would be unique among major AI developers, none of which have offered direct equity to the federal government.

OpenAI's valuation has surged from $80 billion in early 2024 to $852 billion, reflecting the market's bet that generative AI will reshape industries from software to healthcare. The company's revenue has grown rapidly as enterprises adopt its ChatGPT platform and developer tools, though it continues to operate at a loss due to massive computing infrastructure costs.

The proposal comes as Washington weighs competing approaches to AI regulation. The Trump administration has signaled a preference for light-touch oversight to maintain U.S. leadership, while some lawmakers and consumer groups have pushed for stricter safety requirements and antitrust scrutiny of dominant AI platforms.

A government equity stake would create a direct financial incentive for federal policy to support OpenAI's commercial success, potentially influencing decisions on export controls, data center permitting, and federal AI procurement. Critics argue the arrangement could create conflicts of interest, giving OpenAI preferential treatment over rivals such as Anthropic and Google's DeepMind.

The last time the U.S. government held a significant equity stake in a private technology company was during the 2008 financial crisis, when the Treasury took ownership positions in banks and automakers as part of bailout programs. Those stakes were eventually sold at a profit to taxpayers.

OpenAI's structure has already drawn scrutiny. The company was founded as a nonprofit in 2015 and later created a capped-profit subsidiary to attract outside investment. A government ownership position would add another layer to its complex corporate governance, which has been a focus of regulatory attention.

The Financial Times reported that discussions are ongoing and no final agreement has been reached. The White House and OpenAI declined to comment on the specifics of the proposal.

This article is for informational purposes only and does not constitute investment advice.