Hedge fund giant Bridgewater emerges as advocate for ‘little guy' in AI debate — pushes taxes to boost ‘citizen equity'

• Bridgewater proposes a 35% token tax on AI usage, potentially raising $600 billion by 2030 to purchase equity stakes in AI companies for all citizens, rejecting universal basic income as giving too much control to government bureaucrats
• Chief Investment Officer Greg Jensen argues AI work currently escapes payroll taxes that human workers pay, and suggests AI companies controlling over 5% of US or global computing power should face heightened oversight similar to major banks
• The firm acknowledges it would be 'disproportionately subject to the taxes and regulations' it recommends, with observers noting smoother AI adoption could benefit Bridgewater's own investments by limiting public backlash

Summary: Bridgewater Associates Proposes AI Tax and Regulatory Framework

Key Players and Proposals:

Bridgewater Associates, the hedge fund founded by Ray Dalio, is advocating for aggressive regulation of the AI industry to protect everyday Americans. Chief Investment Officer Greg Jensen and CEO Nir Bar Dea published an essay calling for "immediate policy action" and have engaged in bipartisan discussions with Washington policymakers.

Core Proposal - "Token Tax":

The firm proposes a 35% tax on AI usage that could generate $600 billion by 2030. Revenue would create "citizen equity" by acquiring AI company shares and distributing them to Americans—rejecting universal basic income (UBI) as giving too much government control. Jensen argues this would empower citizens directly rather than through bureaucratic payments.

Additional Regulatory Measures:

• AI companies controlling over 5% of US/global computing power should face heightened oversight similar to major banks
• Create an IRS division to enforce AI taxation
• Implement regular sworn interviews of AI lab staff regarding safety risks
• Address disparity where AI-generated work escapes payroll taxes while human workers remain taxed

Market Context:

Jensen warned that OpenAI and Anthropic could control 35-50% of global computing power within two years, calling this concentration dangerous. Bridgewater acknowledged it would be "disproportionately subject" to its own proposed taxes but argues intervention is necessary before autonomous AI models make regulation impossible.

Industry Response:

Legal experts praised the safety benefits of public equity stakes in AI governance. AI startup executives noted implementation challenges, particularly establishing universal metering standards for token taxation. Some observers suggest Bridgewater's proposals could benefit its own AI investments by preventing future public backlash and more restrictive regulations.