For much of 2024, David Sacks emerged as a prominent advocate for President-elect Donald Trump within the Silicon Valley community. As both an entrepreneur and venture capitalist, Sacks is also recognized for co-hosting the popular podcast All-In. Through his podcast and various social media channels, he actively promoted Trump’s initiatives designed to stimulate innovation and economic growth in the tech industry. Notably, in June, he orchestrated a high-profile fundraising event for Trump in San Francisco, with ticket prices soaring to an astonishing $300,000 each.
In a surprising development, Sacks has been appointed as the White House’s “AI & crypto czar.” While the specific responsibilities of this role are not entirely clear, it is expected to be a part-time position, allowing Sacks to continue his work at his venture capital firm, Craft. This ambiguity, along with the fact that Sacks will not require Senate confirmation, has led to concerns about potential conflicts of interest and a lack of oversight. Nevertheless, Sacks will have direct access to Trump regarding crucial policy decisions in these rapidly evolving fields, a move that has generally been received positively by leaders in both AI and crypto.
“A comprehensive government approach that works closely with private industry is essential for maintaining a competitive edge in AI, and having a dedicated leader in the Administration can help facilitate that,” stated Tony Samp, head of AI policy at DLA Piper, in a conversation with TIME.
Sacks and Trump
Sacks has long been a significant player in Silicon Valley’s influential circles. As a member of the renowned “PayPal mafia,” he served as the company’s chief operating officer, forging close connections with prominent figures like Elon Musk, who has also recently taken a position in Trump’s Administration. While many in Silicon Valley leaned Democratic during the Obama presidency, Sacks began to voice more conservative views, especially regarding the Russia-Ukraine situation and the issue of censorship on tech platforms. His podcast All-In ranks as the third most popular tech podcast on Apple Podcasts, according to Chartable.
After the events of January 6, Sacks remarked that Trump had “disqualified himself from being a candidate at the national level again.” However, he changed his tune this year, openly supporting Trump during a speech at the Republican National Convention (RNC) in July, where he cautioned that Republicans were facing a “world on fire.” During a lavish fundraiser, he suggested that Trump should choose J.D. Vance as his running mate. Furthermore, Sacks welcomed Trump as a guest on All-In, voicing frustration about the difficulties of doing business during the Biden Administration.
Sacks’ Perspectives on AI
Sacks is not just a supporter of AI; he is actively engaged in the sector himself. Earlier this year, he launched an AI-based work chat application called Glue. He frequently advocates for a more open ecosystem that allows AI startups to thrive, arguing that a substantial amount of online content should be accessible for AI training under fair use guidelines.
“This appointment indicates that the new Administration intends to prioritize startups and venture capital in its AI strategy,” observed Nik Marda, Mozilla’s technical lead for AI governance. “This suggests that crucial topics like supporting open-source initiatives and enhancing competition in AI will be at the forefront.”
Sacks has also advocated for the incorporation of AI technology into military and national security contexts. In an episode of All-In in April, he expressed hope that Silicon Valley companies would increase their participation in U.S. defense efforts. “As an American, I want the U.S. to remain the most powerful nation. We must maximize our defense spending’s value. 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 censorship in AI models. In this regard, he shares common ground with Musk, whose AI model Grok is designed to generate content that other systems might shy away from, including controversial subjects 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 may encounter competition for influence from other notable AI experts, including Marc Andreessen, who supports rapid AI development, and Musk, who has expressed caution regarding the potential existential risks associated with the technology.
Sacks and Cryptocurrency
In addition to his focus on AI, Sacks will also be responsible for cryptocurrency initiatives in his new role. His appointment has been welcomed by crypto investors, as Sacks is known for his favorable views on the industry and is likely to support Trump’s agenda of maintaining relaxed regulations. Sacks has made significant investments in Solana, a cryptocurrency linked to its own blockchain, which was previously supported by Sam Bankman-Fried. His venture capital firm, Craft, has also invested in crypto companies like BitGo and Bitwise.
When announcing Sacks’ appointment, Trump mentioned that he would be responsible for creating “a legal framework that offers the clarity the crypto industry has been seeking to thrive in the U.S.” Sacks joins a growing list of pro-crypto appointees under Trump, including Paul Atkins, the new nominee for SEC chair. This stands in stark contrast to the Biden administration’s SEC, which took a notably aggressive stance against crypto companies it saw as violating securities laws.
Trump has also been eager to claim credit for the cryptocurrency market’s recent successes. When Bitcoin first crossed the $100,000 threshold, he proclaimed on his social media platform, Truth Social, “YOU’RE WELCOME!!!”
Read More: What Trump’s Win Means for Crypto
Concerns About Conflicts of Interest
Despite Sacks’ enthusiasm for AI and cryptocurrency, the extent of his authority in this new position remains somewhat unclear. Reports from Bloomberg suggest that Sacks will serve as a “special government employee,” a part-time role that does not require him to divest from or publicly disclose his investments, limited to 130 working days per year. A spokesperson from Craft confirmed to Bloomberg that Sacks will continue his position at the venture firm.
It is still uncertain whether Sacks will have a dedicated staff or how his funding will be structured. Other government agencies, 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 authority,” notes Marda.
Suresh Venkatasubramanian, who served as an AI advisor to Biden’s White House in 2021, has raised concerns about the lack of oversight tied to this position, as well as the potential conflicts of interest it may create. “The responsibilities outlined in the press announcement are akin to those typically associated with the director of the OSTP [Office of Science and Technology Policy],” he commented to TIME. “The primary distinction is the absence of oversight. Given that this appointment involves someone with financial stakes in AI and crypto, it raises questions about whether this role benefits the broader tech industry or merely a select few.”
