For much of 2024, David Sacks emerged as a prominent advocate for President-elect Donald Trump within the Silicon Valley ecosystem. A notable entrepreneur and venture capitalist, Sacks is also recognized for co-hosting the popular podcast All-In. Through both his podcast and a variety of social media channels, he actively promoted Trump’s initiatives designed to stimulate innovation and economic growth in the technology sector. In June, he organized a high-profile fundraiser for Trump in San Francisco, where tickets sold for an astonishing $300,000 each.
In a surprising development, Sacks has accepted a new position in the White House as the “AI & crypto czar.” While the specifics of this role are not entirely clear, it is expected to be part-time, enabling Sacks to maintain his commitments at his venture capital firm, Craft. This ambiguity, coupled with the fact that Sacks will not require Senate confirmation, has raised concerns about potential conflicts of interest and the lack of oversight. Nevertheless, Sacks will have direct communication with Trump regarding key policy decisions impacting these fast-paced industries, a move that has generally been met with approval from leaders in both fields.
“A coordinated government strategy that works closely with private industry is essential for staying competitive in AI, and having a designated leader in the Administration can help with that,” commented Tony Samp, who leads AI policy at DLA Piper, in an interview with TIME.
Sacks and Trump
For years, Sacks has been a significant player among Silicon Valley’s elite. As a member of the renowned “PayPal mafia,” he held the position of chief operating officer, forging strong connections with influential figures such as Elon Musk, who has also recently received a role in Trump’s Administration. While many tech leaders leaned towards Democratic ideals during the Obama presidency, Sacks began to articulate more conservative perspectives, especially regarding the Russia-Ukraine situation and the issue of censorship on tech platforms. His podcast All-In ranks as one of the top three tech podcasts on Apple Podcasts, according to Chartable.
Following the January 6 insurrection, Sacks expressed that Trump had “disqualified himself from being a candidate at the national level again.” However, he changed his tune this year, showing support for Trump during a speech at the Republican National Convention (RNC) in July, where he cautioned that Republicans faced a “world on fire.” At a lavish fundraiser, he encouraged Trump to consider J.D. Vance as his running mate. Additionally, Sacks welcomed Trump onto All-In, sharing his frustrations about the difficulties of conducting business under the Biden Administration.
Sacks’ Perspectives on AI
Sacks is also deeply engaged in the AI sector; earlier this year, he launched an AI-driven work chat application called Glue. He often advocates for a more open ecosystem that allows AI startups to thrive, arguing that a considerable amount of online content should be available for AI training under fair use guidelines.
“This appointment indicates that the incoming Administration will emphasize startups and venture capital in its AI strategy,” noted Nik Marda, Mozilla’s technical lead for AI governance. “This hints that vital issues like promoting open-source initiatives and enhancing competition in AI will be prioritized.”
Sacks has also advocated for the application of AI technology in military and national security contexts. During an episode of All-In in April, he expressed his hope that Silicon Valley firms would step up their participation in U.S. defense efforts. “As an American, I want the U.S. to remain the strongest nation. I aim for us to maximize the effectiveness of our defense spending. The only way to do that is by having innovative startups disrupt the defense sector,” he stated. (Recently, OpenAI announced a partnership with defense contractor Anduril.)
Sacks has been a vocal opponent of any form of censorship in AI models. In this regard, he shares common ground with Musk, whose AI model Grok is designed to generate controversial content that other AI systems might avoid, including scenarios 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 encounter competition for influence from other prominent AI figures, including Marc Andreessen, who is a proponent of rapid AI advancement, and Musk, who has warned about the existential risks posed by the technology.
Sacks and Cryptocurrency
Alongside his focus on AI, Sacks will also oversee cryptocurrency initiatives in his new capacity. His appointment has been met with enthusiasm among crypto investors, as Sacks is recognized for his supportive views towards the industry and is likely to reinforce Trump’s agenda of maintaining less stringent regulations. He has made significant investments in Solana, a cryptocurrency linked to its own blockchain, previously endorsed by Sam Bankman-Fried. Furthermore, his venture capital firm, Craft, has invested in crypto companies like BitGo and Bitwise.
In announcing Sacks’ appointment, Trump indicated that Sacks would be responsible for developing “a legal framework that provides the clarity the crypto industry has sought to thrive in the U.S.” Sacks joins a wave of recent pro-crypto appointees under Trump, including Paul Atkins, the new nominee for SEC chair. In stark contrast, the Biden administration’s SEC was known for its aggressive pursuit of legal action against crypto firms it deemed to have violated securities regulations.
Trump has also been eager to claim credit for the recent successes of cryptocurrency. When Bitcoin first surpassed the $100,000 mark, he declared on his social media platform, Truth Social, “YOU’RE WELCOME!!!”
Read More: What Trump’s Win Means for Crypto
Concerns Regarding Conflicts of Interest
Despite Sacks’ enthusiasm for both AI and cryptocurrency, the extent of his real authority in this new role remains uncertain. Bloomberg has reported that Sacks will serve as a “special government employee,” a part-time position that does not require him to divest from or publicly disclose his investments, with a cap of 130 working days per year. A representative from Craft confirmed to Bloomberg that Sacks will continue his role at the venture firm.
It is still unclear whether Sacks will have a dedicated team or how his funding will be structured. Other governmental departments, such as the Department of Commerce, may operate under entirely different frameworks and priorities concerning AI. “Czar roles can often be somewhat unconventional, relying more on relationships than formal power,” Marda observes.
Suresh Venkatasubramanian, who served as an AI advisor to Biden’s White House in 2021, has expressed concerns about the lack of oversight linked to this new position and the potential conflicts of interest it may entail. “The responsibilities outlined in the press announcement resemble those typically associated with the director of the OSTP [Office of Science and Technology Policy],” he shared with TIME. “The key difference is the lack of oversight. Given that this appointment involves someone with financial stakes in AI and cryptocurrency, it raises questions about whether this role benefits the broader tech industry or just a select few.”
