Media reports say that artificial intelligence (A.I.) startup company OpenAI is in discussions with the Trump administration about giving the U.S. government a 5% stake in its business.
OpenAI has reportedly offered to give America’s federal government a 5% stake as the company seeks to ease political pressure ahead of its upcoming initial public offering (IPO).
Sam Altman, the chief executive officer (CEO) of OpenAI, has argued that giving the public a financial stake in the company is the best way to share the upside of A.I.
Giving the U.S. government an ownership stake could help OpenAI smooth relations with regulators in Washington, D.C. and U.S. President Donald Trump ahead of its planned IPO.
The 5% stake could be lucrative for the government given that OpenAI is seeking a $1 trillion U.S. valuation in its IPO that’s expected by year’s end.
OpenAI was last valued at $852 billion U.S. in March of this year.
The U.S. government has taken stakes in other companies since Trump returned to the White House, notably a 9.1% equity stake in chipmaker Intel (INTC).
Separately, the Trump administration is also in talks with A.I. companies to create voluntary standards for the release of new models.
The standards, which are expected to be announced soon, would set benchmarks for A.I. models and establish release timelines for new products.
The Trump administration is becoming more focused on A.I. companies amid a public backlash against the technology.
Several recent polls found that the majority of Americans view A.I. with skepticism and a strong desire for regulations.
The main concern Americans have with A.I. is that it will replace human workers and lead to massive job losses.
OpenAI is privately held and its stock does not currently trade on a public exchange.
Tech Insider
