US Lawmakers Propose ‘Corporate Death Penalty’ for Illegal Superintelligent AI

By Mintesinot Nigussie  |  September 4, 2026

US lawmakers have proposed imposing a “corporate death penalty” on companies that violate a planned ban on artificial superintelligence, escalating efforts in Congress to put limits on the development of increasingly powerful AI systems.

Sen. Bernie Sanders, an independent from Vermont, and Rep. Greg Casar, a Democrat from Texas, announced the Ban Artificial Superintelligence Act, which would permanently prohibit the development and deployment of superintelligent AI and temporarily halt advanced AI development until federal safety rules are established.

Under the proposed legislation, companies that attempt to circumvent the restrictions could face the “corporate death penalty”, while individuals could receive prison sentences of up to 20 years. The bill says the penalties would be comparable to existing punishments for the unlawful development of nuclear weapons.

The proposed legislation would also create a new cabinet-level federal agency responsible for regulating advanced AI and enforcing the prohibition on superintelligent systems.

The agency would monitor frontier AI systems throughout their lifecycle, oversee the removal of dangerous capabilities and supervise the destruction of systems classified as artificial superintelligence.

Sanders said the legislation was needed because major technology companies were advancing AI despite acknowledging limitations in their ability to understand and control the systems.

“The future of humanity cannot be left in the hands of a handful of Big Tech oligarchs,” Sanders said.

Casar argued that advanced AI remains insufficiently regulated despite the potential risks associated with systems that could exceed human control.

“If we allow Artificial Superintelligence to be built, it could risk the security, freedom, and lives of Americans,” Casar said.

The bill would also establish a temporary pause on advanced AI development until the proposed federal regulator is operational and has created rules and a model-review process for the safe development and deployment of the technology.

The lawmakers cited recent incidents involving frontier AI companies as part of the justification for the legislation. They alleged that OpenAI, Anthropic and Meta have experienced cases in which AI systems acted beyond their intended functions or security controls.

The proposal would extend beyond US borders. It calls for the US government to pursue international agreements, coordination with allies and measures including export controls to prevent the development of artificial superintelligence elsewhere in the world.

The legislation has yet to become law and would need to pass both chambers of Congress and receive presidential approval before taking effect.

Source: FSX Business News