OpenAI Proposes 5% U.S. Government Stake Worth $42.6 Billion

OpenAI has proposed giving the U.S. government a 5% stake in the company, the Financial Times reported Thursday. CEO Sam Altman suggested the stake in early conversations with the Trump administration, according to two people familiar with the talks cited by the FT, as the artificial intelligence startup seeks to defuse mounting political pressure in Washington. The proposed 5% holding would be valued at approximately $42.6 billion, based on OpenAI's March funding round that closed at a post-money valuation of $852 billion. The arrangement follows a precedent set when the U.S. government acquired a 10% stake in Intel Corp after an $8.9 billion investment in the chipmaker's common stock.

OpenAI Proposes $42.6 Billion Government Stake Based on March Valuation

The 5% stake would be worth roughly $42.6 billion after OpenAI closed a record-breaking funding round in March at a post-money valuation of $852 billion. 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. The proposed arrangement envisions other U.S. AI companies ceding similar stakes to the government, though it is unclear whether rival labs would participate, according to the FT.

U.S. Government Holds 10% Intel Stake After $8.9 Billion Investment

The U.S. government holds a 10% stake in Intel Corp after an $8.9 billion investment in the chipmaker's common stock. In May, President Donald Trump said he should have asked for a bigger stake in the company. In June, Trump said that the U.S. taking an ownership stake in AI giants would be "a beautiful thing" and make Americans "partners in this revolution."

White House and OpenAI Provide No Immediate Comment

It is not clear whether the administration intends to pursue the stake. The White House and OpenAI did not immediately respond to CNBC's requests for comments.

FAQ

What stake did OpenAI propose to the U.S. government? OpenAI proposed giving the U.S. government a 5% stake in the company, which would be worth approximately $42.6 billion based on the company's March funding round valuation of $852 billion.

Why did OpenAI propose this government stake? According to the Financial Times report citing two people familiar with the talks, OpenAI seeks to defuse mounting political pressure in Washington. CEO Sam Altman argued that giving the public a financial interest in the company is the best way to share the upside of AI.

What precedent exists for U.S. government equity stakes in tech companies? The U.S. government holds a 10% stake in Intel Corp after an $8.9 billion investment in the chipmaker's common stock. President Trump stated in June that the U.S. taking ownership stakes in AI giants would be "a beautiful thing."