US lawmakers propose new tax on AI data tokens

Legislators in the United States are exploring various tax frameworks to regulate the rapid growth of artificial intelligence. Among the proposals gaining momentum is a “token tax,” which would target the discrete units of data processed by large language models like ChatGPT or Claude.

Representatives Greg Casar of Texas and Sara Jacobs of California have introduced legislation to implement this tax. The concept has received support from high-profile figures, including Microsoft founder Bill Gates and OpenAI CEO Sam Altman. Other legislative ideas include Senator Bernie Sanders’s proposal for an AI Sovereign Wealth Fund and Senator Elizabeth Warren’s call for an excise tax on data centers.

Critics of these measures suggest that such policies may mirror failed attempts to tax the early internet, such as the 1995 “bit tax” proposal, and could potentially stifle the economic promise of AI technology.