Mark Cuban has proposed a federal tax on artificial intelligence (AI) tokens at less than 50 cents per million. He said the levy would push large model operators toward efficiency while raising billions in annual revenue.

The Dallas Mavericks owner said his idea mirrors the regulatory path crypto once resisted. Critics including libertarian-leaning founders and AI builders have pushed back sharply.

Cuban said early crypto supporters treated any rule as unacceptable. They later gravitated toward PACs and structured advocacy once growth demanded legal clarity. He tied that arc to the AI debate.

“This is exactly what EVERYONE said about crypto. Any regulation is bad. I got crucified on here for saying that the industry needed regulation to expand it to normies,” wrote Cuban.

The software billionaire investor framed the proposal as a sales-tax-style charge on commercial providers.

Open-source models and local inference would sit outside its scope. Crypto firms have walked a similar path, with lobbying quadrupling in recent years.

Cuban estimated the levy could yield about $10 billion a year at the start. He said the figure could expand sharply as inference demand grows. Revenue could fund federal debt reduction or programs responding to AI disruptions.

We should federally tax Tokens at the Provider level.

Not a lot. Less than 50c per million tokens.

It will accomplish 4 things (at least )

1. It will push the big AI players to optimize tokenization, caching , routing and localization

Which will

2. Reduce energy…

Energy concerns sit at the center of his case. Data centers running large language models already draw heavily on US grids. Cuban said the tax would push providers toward efficiency gains that exceed their tax outlay.

Anduril founder Palmer Luckey said the measure would tax American firms while pushing customers toward foreign models. He warned of new infrastructure for federal tracking of AI usage.

There are already massive economic incentives to optimize, so this is just a tax on American companies that makes foreign models and products more attractive.

Along with creating the infrastructure for government to track all AI usage and punish anyone who doesn't report.

The proposal will not advance without congressional appetite, which currently looks thin.

Whether AI providers eventually lobby for clearer rules, as crypto firms did, may shape the next phase of the debate.

The post Shark Tank Billionaire Mark Cuban Proposes Federal AI Token Tax appeared first on BeInCrypto.

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