White House and OpenAI Discuss Government Equity Stake Before IPO

The White House and OpenAI are in active discussions about giving the United States government an equity stake in the artificial intelligence company, according to multiple reports. The talks come as OpenAI prepares for a potential initial public offering, commonly known as an IPO, that could value the company at more than 850 billion dollars.

How the Deal Could Work

OpenAI CEO Sam Altman first pitched the concept to President Donald Trump in early 2025 and has continued periodic discussions with senior administration officials since then. The proposal centers on a Public Wealth Fund that OpenAI outlined in an April policy paper. Under this model, OpenAI would donate equity to a government-managed fund designed to invest in long-term assets and distribute returns directly to American citizens. This approach would effectively make every citizen a partial stakeholder in one of the most valuable technology companies in the world.

Trump referenced the idea during a conversation aboard Air Force One on June 5, stating that pieces could be given to the American public where citizens would essentially become partners. The president has already set precedent for similar arrangements, having signed an executive order in February establishing a federal sovereign wealth fund. The government currently holds positions in companies like Intel, IBM, quantum technology firms, and critical minerals producers.

What This Means for the AI Industry

If finalized, the deal would represent the first time the US government takes a direct ownership stake in a major artificial intelligence company. The arrangement could reshape how policymakers approach AI regulation by giving government officials a financial interest in AI success rather than simply acting as outside regulators. Large language models, or LLMs, built by OpenAI power popular tools like ChatGPT that millions of people use daily.

The proposal also raises questions about potential conflicts of interest. Senator Bernie Sanders discussed the sovereign wealth fund concept with Altman this week, highlighting growing bipartisan attention to how AI profits should be shared with the broader public. For AI companies watching from the sidelines, a government stake in OpenAI could set expectations that similar arrangements will be proposed industry-wide.

The deal remains in early stages with no finalized investment terms, but the pace of discussions suggests both sides see value in moving forward. OpenAI is expected to pursue its IPO potentially as soon as later this year, making the timeline for any agreement increasingly urgent.