In a provocative address at TechCrunch Disrupt 2025, venture capitalist Vinod Khosla outlined a bold strategy to mitigate the economic fallout from artificial general intelligence (AGI). Khosla, founder of Khosla Ventures and an early investor in OpenAI, suggested that the U.S. government could acquire a 10% equity stake in all public companies. This move, he argued, would help redistribute the wealth generated by AI-driven abundance and cushion the blow of widespread job displacement.

Khosla’s vision stems from his belief that AGI will revolutionize society, creating unprecedented prosperity but also rendering many jobs obsolete. ‘We need to do some radical things,’ Khosla stated during the event, as reported by TechCrunch. He envisions a future where AI boosts productivity to such an extent that traditional employment models collapse, necessitating innovative policy interventions.

The AI Abundance Paradox

According to Khosla, AGI could lead to an era of ‘abundance’ by 2050, where products and services become essentially free due to hyper-efficient AI systems. However, this abundance risks exacerbating inequality without mechanisms to share the gains. Drawing from posts on X (formerly Twitter), Khosla has previously warned that AI will replace 80% of BPO jobs in the next five years, a sentiment echoed in his recent talk.

Industry insiders point to Khosla’s track record: as a co-founder of Sun Microsystems and backer of transformative tech like OpenAI, his predictions carry weight. In a Forbes article dated April 7, 2025, Khosla described AI as a ‘complete reimagining of who creates software and how organizations operate,’ highlighting the exponential changes ahead.

Government Intervention in Tech

Khosla’s proposal isn’t without precedent. He referenced historical government actions, such as subsidies in semiconductors, suggesting a similar approach for AI. As detailed in a Yahoo Finance report from October 28, 2025, Khosla emphasized that the government taking stakes could fund universal basic services, softening AGI’s impact on the workforce.

Critics, however, question the feasibility. Posts on X from users like Jens Honack amplify Khosla’s forecasts, noting that by 2030, AI agents could run companies and cause Fortune 500 collapses. Yet, implementing a 10% stake across all public firms would require massive legislative overhaul, potentially facing resistance from free-market advocates.

Khosla’s Broader AI Outlook

Beyond equity stakes, Khosla advocates for aggressive AI adoption. In a Bloomberg video from July 15, 2025, he discussed green tech investments, tying them to AI’s role in climate solutions. He argues that the U.S. must lead in AI to counter global competitors like China, a view he expressed in an X post from November 2, 2024, where he stated, ‘I am paranoid about China.’

At the Startup Policy Forum in September 2025, covered by The Tribune, Khosla called on India to lead in AI transformation, predicting the obsolescence of IT and BPO sectors. This global perspective underscores his belief that AI’s disruptions will be worldwide, demanding coordinated policy responses.

Job Losses and Economic Reconfiguration

Khosla predicts mass unemployment, with AI replacing roles in sectors like healthcare, transportation, and finance. A TechCrunch article from October 28, 2025, quotes him saying the government should ‘share the abundance created by AI technology.’ He proposes using the 10% stakes to fund education, retraining, and basic income programs.

Historical analogies abound: just as the Industrial Revolution displaced workers but spurred growth, AGI could do the same on steroids. Khosla, in a Mario Nawfal interview on X from April 21, 2025, warned that ‘strength in AI will determine’ future global power, urging proactive measures to avoid social unrest.

Policy Debates and Expert Reactions

Reactions to Khosla’s idea vary. San Francisco Business Times reported on October 28, 2025, that Khosla thinks the U.S. needs ‘radical things’ like this to survive AI job losses. Supporters see it as a way to democratize AI wealth, while detractors fear government overreach.

In a Times of India piece from three weeks ago, Khosla defended OpenAI’s Sora 2 against critics, calling negative reactions ‘elitist.’ This combative stance extends to policy, where he pushes for bold reforms. A U.S. State Department X post from February 23, 2025, highlights efforts to protect AI tech from China, aligning with Khosla’s views.

Investing in the Future

Khosla’s firm has backed AI moonshots, as noted in a TechCrunch post from September 23, 2025, about Disrupt 2025. He envisions AI enabling breakthroughs in healthcare and climate, but stresses equitable distribution. In a 49ers Webzone article from July 2, 2025, Khosla discussed tech’s future at the Horizon Summit, emphasizing AI’s transformative potential.

Economists debate the mechanics: acquiring 10% stakes could involve issuing new shares or buy-ins, potentially diluting values. Khosla counters that the productivity gains from AGI would offset any short-term pains, leading to long-term societal benefits.

Global Implications and Challenges

Internationally, Khosla’s ideas resonate amid rising AI tensions. His X post from August 17, 2024, summarized Leopold Aschenbrenner’s essay on AGI’s future, warning of geopolitical risks. Policies like this could position the U.S. as a leader in ethical AI governance.

Challenges include legal hurdles and market reactions. As per Startup News FYI from October 28, 2025, Khosla shares ideas on ‘sharing the abundance of AI,’ but implementation would require bipartisan support in a divided Congress.

Vision for 2030 and Beyond

Looking ahead, Khosla forecasts a world where AI creates ‘global abundance by 2050,’ as per the Mario Nawfal interview. His proposal aims to ensure no one is left behind, blending capitalism with social safety nets.

Industry leaders are watching closely. With AGI on the horizon, Khosla’s radical vision might spark the policy innovations needed to navigate this uncharted territory.