For much of 2024, David Sacks has emerged as a prominent advocate for President-elect Donald Trump within Silicon Valley. As an entrepreneur and venture capitalist, Sacks also co-hosts the popular podcast All-In. Through his podcast and various social media channels, he has actively supported Trump’s initiatives aimed at driving innovation and economic growth in the tech industry. Notably, in June, he organized a major fundraiser for Trump in San Francisco, where tickets sold for an astonishing $300,000 each.
In a significant development, Sacks has been appointed as the “AI & crypto czar” in the White House. While the specifics of this role remain somewhat unclear, it is anticipated to be part-time, allowing him to maintain his position at his venture capital firm, Craft. This ambiguity, coupled with the fact that Sacks will not need Senate confirmation, has raised questions about potential conflicts of interest and the lack of oversight. Nevertheless, Sacks will have direct access to Trump on critical policy issues affecting these rapidly changing fields, a move that has been generally well-received by leaders in both AI and crypto.
“A well-rounded government strategy that works in tandem with the private sector is crucial for staying competitive in AI, and having a dedicated leader in the Administration can help facilitate that,” Tony Samp, head of AI policy at DLA Piper, told TIME.
Sacks and Trump
Sacks has been a significant player in Silicon Valley for many years. Known as a member of the influential “PayPal mafia,” he served as the company’s chief operating officer and cultivated relationships with prominent figures like Elon Musk, who has also recently received a position in Trump’s administration. While many in Silicon Valley leaned Democratic during the Obama presidency, Sacks began to adopt more conservative stances, especially regarding the Russia-Ukraine conflict 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.
Following the January 6 insurrection, Sacks remarked that Trump had “disqualified himself from being a candidate at the national level again.” However, he changed his position this year, expressing support for Trump during a speech at the Republican National Convention (RNC) in July, where he cautioned that Republicans were facing a “world on fire.” At a lavish fundraiser, he encouraged Trump to consider J.D. Vance as his running mate. Additionally, Sacks hosted Trump on All-In, sharing his frustrations about the difficulties of doing business under the Biden Administration.
Sacks’ Perspectives on AI
Sacks is actively involved in the AI sector; earlier this year, he launched an AI-driven work chat application called Glue. He frequently advocates for a more accessible ecosystem that supports AI startups, arguing that a large share of online content should be available for AI training under fair use guidelines.
“This appointment indicates that the new Administration will emphasize the importance of startups and venture capital in its AI strategy,” commented Nik Marda, Mozilla’s technical lead for AI governance. “This suggests that essential topics like promoting open-source projects and stimulating competition in AI will be prioritized.”
Sacks has also been a proponent of integrating AI technologies into military and national security applications. During an episode of All-In in April, he expressed hope that Silicon Valley firms would become more engaged in U.S. defense efforts. “As an American, I want the U.S. to maintain its status as the most powerful nation. We need to maximize the effectiveness of our defense expenditures. The only way to do this is by allowing innovative startups to disrupt the defense sector,” he stated. (Recently, OpenAI announced a partnership with defense contractor Anduril.)
Sacks has notably opposed censorship in AI models. He shares this viewpoint with Musk, whose AI model Grok is designed to produce controversial content that other AI systems might avoid, including scenarios such as a Nazi Mickey Mouse.
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However, within the Trump Administration, Sacks is expected to compete for influence with other notable AI experts, including Marc Andreessen, who is an advocate for rapid AI advancements, and Musk, who has raised concerns about the existential risks posed by AI technology.
Sacks and Crypto
In addition to his focus on AI, Sacks will also manage cryptocurrency initiatives in his new role. His appointment has been welcomed by crypto investors, as Sacks is known for his supportive views on the industry and is likely to strengthen Trump’s agenda of maintaining light regulations. Sacks has made significant investments in Solana, a cryptocurrency linked to its own blockchain, previously backed by Sam Bankman-Fried. His firm, Craft, has also invested in crypto companies such as BitGo and Bitwise.
When announcing Sacks’ appointment, Trump mentioned that Sacks would be responsible for creating “a legal framework that delivers the clarity the crypto industry has been seeking to thrive in the U.S.” Sacks joins a growing list of recent pro-crypto appointees under Trump, including Paul Atkins, the new nominee for SEC chair. In contrast, the Biden administration’s SEC has been notably aggressive in pursuing legal actions against crypto firms deemed to have violated securities regulations.
Trump has also been eager to take credit for the recent successes of cryptocurrencies. When Bitcoin first exceeded 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 About Potential Conflicts of Interest
Despite Sacks’ enthusiasm for AI and crypto, the extent of his actual authority in this new role is still uncertain. Reports from Bloomberg indicate that Sacks will operate as a “special government employee,” a part-time position that does not require him to divest from or publicly reveal his investments, limited to 130 working days each year. A spokesperson from Craft confirmed to Bloomberg that Sacks will continue his work at the venture firm.
It remains unclear whether Sacks will have a dedicated staff or how his funding will be organized. Other government 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 on formal authority,” Marda observes.
Suresh Venkatasubramanian, who served as an AI advisor during Biden’s administration in 2021, has expressed concerns regarding the lack of oversight related to this new role, as well as 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 primary 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 merely a select few individuals.”
