Michael Bloomberg Slams Trump’s Plan for Government Stakes in AI Companies

Billionaire Michael Bloomberg has criticized a proposal under consideration by President Trump that would have the federal government take ownership stakes in AI companies, warning it could open the door to corruption and cronyism.

A Shifting Bargain Behind the AI Boom

The original arrangement powering America’s AI expansion involved private investors funding the buildout and shouldering the risk, private companies owning early gains before eventually going public, and government stepping in mainly to regulate after the fact. That contrasts with China’s model, where companies still compete for investment and customers, but the government directly supplies computing resources. As costs climb, competition from China intensifies, and Washington increasingly treats AI as a matter of national security, that original US arrangement appears to be shifting.

Bloomberg’s Opposition

Writing in a Bloomberg Opinion column published Monday, Bloomberg argued that government ownership would transform Washington from a regulator into a profit-seeking investor, creating conditions for cronyism. Bloomberg contended that Americans don’t need government ownership to benefit from AI, since they can already buy shares once companies go public and are already gaining from AI driven improvements in fraud detection, medical research, and everyday business tools.

An Alternative Approach

Rather than the government taking ownership stakes, Bloomberg argued that Washington should address any shortfall in AI’s public contribution by reforming the tax code instead of becoming a shareholder. He predicted that federal ownership would eventually lead to backroom dealing and corruption rather than genuine public benefit.