For a significant portion of 2024, David Sacks emerged as a key supporter of President-elect Donald Trump in Silicon Valley. An entrepreneur and venture capitalist, Sacks is also known for co-hosting the well-regarded podcast All-In. Through his podcast and various social media platforms, he championed Trump’s policies aimed at fostering innovation and economic expansion within the tech sector. In June, he organized a high-profile fundraiser for Trump in San Francisco, where ticket prices reached a staggering $300,000 each.
In a notable turn of events, Sacks has been appointed to a new role in the White House: the “AI & crypto czar.” While the exact scope of this position remains somewhat ambiguous, it is expected to be part-time, allowing Sacks to continue his work at his venture capital firm, Craft. This lack of clarity, combined with the fact that Sacks won’t be subjected to Senate confirmation, has raised eyebrows regarding potential conflicts of interest and the absence of oversight. Nonetheless, Sacks will have direct access to Trump on pivotal policy matters affecting these rapidly evolving industries, a decision that has generally been welcomed by leaders in both sectors.
“A comprehensive government strategy that collaborates closely with private industry is vital for maintaining a competitive edge in AI, and having a designated leader in the Administration can facilitate that,” Tony Samp, who heads AI policy at DLA Piper, shared with TIME.
Sacks and Trump
Sacks has been a prominent figure within Silicon Valley’s influential circles for years. As a member of the so-called “PayPal mafia,” he served as the company’s chief operating officer, forming close ties with figures like Elon Musk, who has also received a new appointment in Trump’s Administration. While many in Silicon Valley leaned toward Democratic ideals during the Obama era, Sacks began to express more conservative viewpoints, particularly concerning the Russia-Ukraine conflict and combating censorship on tech platforms. His podcast All-In ranks as the third most popular tech podcast on Apple Podcasts, according to Chartable.
In the wake of the January 6 insurrection, Sacks stated that Trump had “disqualified himself from being a candidate at the national level again.” However, he shifted his stance this year, publicly supporting Trump during a speech at the Republican National Convention (RNC) in July, where he warned that Republicans faced a “world on fire.” At a lavish fundraiser, he advocated for Trump to select J.D. Vance as his running mate. Additionally, Sacks welcomed Trump as a guest on All-In, expressing frustration over the challenges of conducting business during the Biden Administration.
Sacks’ Views on AI
Sacks is actively involved in the AI landscape himself; earlier this year, he introduced an AI-driven work chat application named Glue. He frequently advocates for a more open ecosystem that enables AI startups to flourish, contending that a significant amount of online content should be accessible for AI training under fair use principles.
“This appointment signals that the incoming Administration will prioritize startups and venture capital in its approach to AI,” remarked Nik Marda, Mozilla’s technical lead for AI governance. “This suggests that critical issues such as promoting open source initiatives and fostering competition in AI will take center stage.”
Sacks has also pushed for the integration of AI technology in military and national security applications. During an All-In episode in April, he expressed hope that Silicon Valley companies would increase their involvement in U.S. defense initiatives. “As an American, I want the U.S. to remain the most powerful nation. I want us to maximize the value of our defense spending. The only way to achieve that is by having the defense sector disrupted by innovative startups,” he stated. (Recently, OpenAI announced a collaboration with defense contractor Anduril.)
Sacks has notably opposed any form of censorship in AI models. In this regard, he aligns with Musk, whose AI model Grok is designed to generate controversial content that other AI systems might avoid, including instances like a Nazi Mickey Mouse.
Read More: Elon Musk’s New AI Data Center Raises Alarms Over Pollution
However, within Trump’s White House, Sacks will face competition for influence from other prominent AI thinkers, including Marc Andreessen, who advocates for rapid AI development, and Musk, who has cautioned against the potential existential threats posed by the technology.
Sacks and Crypto
In addition to his focus on AI, Sacks will also oversee cryptocurrency initiatives in his new role. His appointment has been met with enthusiasm among crypto investors, as Sacks is known for his supportive stance toward the industry and is likely to bolster Trump’s agenda of maintaining lenient regulations. Sacks has made substantial investments in Solana, a cryptocurrency associated with its own blockchain, previously endorsed by Sam Bankman-Fried. His venture capital firm, Craft, has also invested in crypto firms BitGo and Bitwise.
In announcing Sacks’ appointment, Trump stated that he will be tasked with developing “a legal framework that provides the clarity the crypto industry has sought to thrive in the U.S.” Sacks joins a cadre of recent pro-crypto appointees under Trump, including Paul Atkins, the new nominee for SEC chair. In contrast, the Biden administration’s SEC was notably aggressive in pursuing legal action against crypto companies it perceived as violating securities regulations.
Trump has also been keen to take credit for the recent achievements of cryptocurrency. When Bitcoin first surpassed the $100,000 mark, he proclaimed on his social media platform, Truth Social, “YOU’RE WELCOME!!!”
Read More: What Trump’s Win Means for Crypto
Concerns About Conflict of Interest
Despite Sacks’ enthusiasm for both AI and crypto, the extent of his actual authority in this new role is still uncertain. Bloomberg has reported that Sacks will function as a “special government employee,” a part-time position that does not require him to divest from or publicly disclose his investments, with a limit of 130 working days per year. A representative from Craft confirmed to Bloomberg that Sacks will continue in his role at the venture firm.
It remains unclear whether Sacks will have a dedicated staff or how his funding will be structured. Other governmental bodies, such as the Department of Commerce, may operate under entirely different frameworks and priorities regarding AI. “Czar roles can often be somewhat unconventional, relying more on relationships than formal power,” Marda notes.
Suresh Venkatasubramanian, who served as an AI advisor to Biden’s White House in 2021, has voiced concerns regarding the lack of oversight associated with this new position, alongside the potential conflicts of interest it presents. “The responsibilities outlined in the press announcement are similar to those typically associated with the director of the OSTP [Office of Science and Technology Policy],” he shared with TIME. “The main difference is the absence of oversight. Given that this appointment involves someone with financial interests in AI and crypto, it raises questions about whether this role serves the broader tech industry or just a select few individuals.”
