Gavin Newsom Pushes Public Equity in AI Companies Ahead of 2028 Campaign

California Governor Gavin Newsom unveiled a plan to create a public equity fund that would give American citizens shares in the nation’s largest artificial-intelligence firms. The proposal, announced in a blog post last month, would convert a portion of the “titanic valuations” of AI leaders into a vehicle that could fund worker-retraining programs and other public initiatives. Newsom framed the idea as a way to address the “economic schism from AI” and to rewrite the social contract between government and industry.

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Newsom’s AI equity concept builds on his earlier “digital dividends” effort from the 2019 State of the State address, which sought to compensate Californians for their data but never materialized. He has long championed California’s AI boom while warning that unchecked AI could “detonate” the financial system and threaten democracy. The governor has also opposed a one-time wealth tax in California and has promoted steep taxes on the ultra-wealthy at the national level, positioning himself as a populist-tech hybrid ahead of a likely 2028 presidential bid.

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• Gavin Newsom – Governor of California, architect of the equity fund proposal.

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• Jason Elliott – Long-time adviser to Newsom, cited for early concern about AI’s economic impact.

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• Nathan Gardels – Co-founder of the Berggruen Institute, commentator on the political significance of AI.

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• Sam Altman – Founder of OpenAI, who previously floated a 2.5 % “American Equity Fund” and recently discussed a 5 % stake with the White House.

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• Dario Amodei – Co-founder of Anthropic, referenced by Newsom in a podcast.

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• Andrew Yang – Former presidential candidate, advocate of “Universal Basic Capital.”

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• Michael Tubbs – Former Stockton mayor and economic adviser to Newsom, former UBI pilot leader.

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• Dean Baker – Co-founder of the Center for Economic and Policy Research, critic of public AI stakes.

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• Reid Hoffman – Founder-turned-democratic megadonor, participant in Newsom’s podcast discussion.

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Valuations for the biggest AI firms are approaching $1 trillion. A 5 % equity stake, as discussed by OpenAI and the White House, could translate into tens of billions of dollars flowing back to the public. Newsom’s earlier California pilot allocated $35 million to guaranteed-income experiments, a figure now viewed as modest compared with the projected AI windfall.

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Newsom has described the proposal as a response to voter anxiety about job loss and widening wealth gaps, arguing that “the old bargain is dead” and that AI will “finish it off.” OpenAI has engaged the White House on a potential 5 % public stake, while Anthropic has issued a policy paper that frames the idea as an extreme hypothetical and has not yet engaged federal policymakers. The governor’s team has provided only two paragraphs of detail, declining further comment.

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Progressive economists warn the plan could inflate an “AI bubble” and exacerbate inequality. Dean Baker argued that assuming a “giant windfall” is risky and that public stakes might “make the inequality worse by hyping this.” Some critics also note the lack of concrete implementation details and the reliance on corporate goodwill.

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• “He started worrying about the economic schism from AI long before it was the in-vogue thing to talk about,” — Jason Elliott, Adviser

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• “The old bargain is dead,” Newsom said during a NALEO event on Tuesday, “and AI is going to finish it off.” — Gavin Newsom, Governor

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• “Universal Basic Capital makes sense to people because the AI models are built off our data so it’s only natural that citizens have a stake in AI-driven innovation, particularly as AI is going to impact millions of workers,” — Andrew Yang, Former presidential candidate (text message)

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• “I was shocked at the difference in the conversations I was hearing in Silicon Valley about AI and what I was hearing from government leaders — the only people who had a vision were the folks developing this technology,” — Michael Tubbs, Former Stockton mayor

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• “How the hell do you do it? Who’s going to do it?” — Gavin Newsom, Governor (podcast)

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Implementation would require congressional action to authorize a public equity fund and to define the share percentage for each AI company. OpenAI and the White House are reportedly discussing the specifics of a 5 % stake, but no legislative timeline has been announced.

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