Bridgewater Proposes 35% AI Token Tax to Fund Citizen Equity

Bridgewater Associates proposed a 35% “token tax” on AI usage in a recent policy paper authored by Chief Investment Officer Greg Jensen, Chief Executive Nir Bar Dea and other senior executives. The paper recommends using the proceeds to buy shares in leading AI firms and distribute that ownership to U.S. citizens.

Bridgewater estimates a 35% levy could raise as much as $600 billion by 2030. The firm advises purchasing equity rather than making cash payments to individuals. Jensen wrote, “Giving people direct equity would provide a greater degree of economic participation than government-funded cash payments, while reducing the ability of politicians to determine how and when benefits are distributed.”

The authors argue AI-generated work should not receive a tax advantage over human labor. Revenue from an AI-related tax could be used to reduce taxes on workers and to fund support for people whose jobs are displaced by automation.

The paper raises concerns about concentration of the computing power needed for advanced AI. Jensen warned a small number of companies could control a large share of global AI computing capacity within a few years and recommended extra scrutiny for firms that control more than about 5% of U.S. or global AI computing capacity, comparing that level of supervision to oversight applied to systemically important financial institutions.

Bridgewater called for stronger oversight of AI safety practices, including regular government interviews with employees at AI laboratories to assess emerging model risks and the measures taken to mitigate them. The firm has held informal discussions with policymakers from both parties in Washington about measures to address potential job disruption and the concentration of economic power among a small number of AI companies.

Bridgewater manages more than $100 billion and presented the proposals as measures to address AI risks and broaden ownership in the companies developing the technology.