Billionaire Proposes Taxing AI to Fund Worker Dividends in California

Tom Steyer's plan would charge tech companies for data processing to seed a state wealth fund.

Apr. 3, 2026 at 7:19pm

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A highly detailed, glowing 3D macro illustration of a futuristic data center server rack, with neon cyan and magenta lights illuminating the complex circuitry and hardware components, conceptually representing the physical technology powering artificial intelligence.A visionary illustration of the digital infrastructure powering the AI revolution, which some propose taxing to fund worker retraining and dividends.San Diego Today

California billionaire Tom Steyer has unveiled a proposal to tax artificial intelligence companies based on their data processing volume, with the goal of creating a $2.4 billion state wealth fund. The revenue from this 'token tax' would then be used to provide education, job retraining, and direct cash payments to Californians facing AI-driven job displacement.

Why it matters

Steyer's plan aims to position California as an active stakeholder in the AI revolution, rather than just watching as white-collar jobs are automated away. By claiming ownership in the growth of AI, the state could redistribute the wealth generated by these technologies to support workers.

The details

Steyer's proposal would target AI companies like OpenAI and Anthropic, both headquartered in California, by charging them a fraction of a cent for every unit of data they process. The revenue would seed a Golden State Sovereign Wealth Fund, similar to Alaska's oil dividends or Norway's investment fund, but built on algorithms instead of natural resources. The fund would then provide education, job retraining, and direct cash payments to Californians.

  • Steyer unveiled the plan at a March town hall in San Diego.
  • The proposed $2.4 billion fund would be funded by taxing AI companies on their data processing.

The players

Tom Steyer

A California billionaire and gubernatorial candidate who has proposed the AI token tax plan.

OpenAI

An artificial intelligence company headquartered in California that would be subject to Steyer's proposed tax.

Anthropic

An artificial intelligence company headquartered in California that would be subject to Steyer's proposed tax.

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What they’re saying

“I refuse to let California's future be a boom for billionaires and a bust for everyone else.”

— Tom Steyer, Gubernatorial Candidate

What’s next

Steyer's proposal would require extensive negotiation with lawmakers and tech companies to determine specific tax rates and implementation details. Additional proposals include forcing data centers to cover their energy costs and mandating human oversight for critical AI tasks.

The takeaway

Steyer's plan aims to position California as an active stakeholder in the AI revolution, rather than just watching as white-collar jobs are automated away. By claiming ownership in the growth of AI, the state could redistribute the wealth generated by these technologies to support workers facing displacement.