OpenAI and the Trump administration have been negotiating a government stake in the AI startup for over a year, with talks to move forward in the near future.

OpenAI could hand over shares to the government to build a 'Public Wealth Fund' that would pay out directly to American citizens. No terms have been set yet. Private investors value OpenAI at more than $850 billion, and the company is preparing for an IPO.

Senator Bernie Sanders plans to introduce the 'American A.I. Sovereign Wealth Fund Act,' which would impose a one-time 50 percent tax on shares of the largest AI companies. The government would receive voting rights and board seats, with returns flowing to citizens as direct payments.

A government stake in OpenAI before its IPO would serve as a political shield against future regulation for the company, while the Trump administration could grow its influence over a strategically important industry without going through Congress.

A critical concern is that government stakes in AI companies could create a 'too big to fail' dynamic similar to the 2008 financial crisis, giving the government direct incentive to intervene with taxpayer dollars if companies face financial trouble.