David Sacks, a prominent Silicon Valley entrepreneur, venture capitalist, and podcast co-host, was a strong supporter of President-elect Donald Trump throughout 2024. Sacks publicly advocated that Trump’s pro-business policies would foster technological innovation and economic growth. In June, he hosted a high-priced fundraiser for Trump in San Francisco.
Sacks has been appointed to the newly created White House position of “AI and Crypto Czar.” The scope and authority of this role remain unclear. The part-time nature of the position, and Sacks’ continued involvement with his venture capital firm, Craft, raises concerns about potential conflicts of interest and insufficient oversight. Nevertheless, Sacks will have direct access to President Trump on crucial policy matters concerning AI and cryptocurrency. Industry leaders largely expressed disapproval of the appointment.
“A collaborative, whole-of-government approach with the private sector is crucial for success in the AI arena. A dedicated White House AI leader can significantly contribute to this effort,” Tony Samp, DLA Piper’s head of AI policy, told TIME.
Sacks and Trump
Sacks is a significant figure within Silicon Valley’s power structure. A former PayPal executive and its COO, he cultivated a close relationship with Peter Thiel, who also holds a new position in the Trump administration. While many in Silicon Valley leaned towards Democratic viewpoints, particularly during the Obama years, Sacks became increasingly outspoken in his conservative views, especially regarding the Russia-Ukraine conflict and online censorship. His podcast, All-In, is currently the third most popular tech podcast on Apple Podcasts, according to Chartable.
Following the January 6th insurrection, Sacks stated that Trump had rendered himself ineligible for future presidential candidacy. However, he actively supported Trump’s campaign this year, including a speech at the Republican National Convention (RNC) in July, where he warned of impending global instability. At a fundraising event, Sacks advocated for J.D. Vance as Trump’s running mate. Sacks also interviewed Trump on All-In, claiming that conducting business under the Biden administration was exceptionally challenging.
Sacks’ views on AI
Sacks is actively involved in the AI sector, launching an AI-powered workplace chat app, Glue, this year. He consistently supports a less regulated environment to encourage AI company growth and believes most internet content should be accessible for AI training under fair use principles.
“This appointment underscores the incoming administration’s focus on startups and venture capital in its AI strategy,” says Nik Marda, Mozilla’s technical lead for AI governance. “This implies a prioritization of open-source initiatives and competition within the AI landscape.”
Sacks has championed the integration of AI into military and national security applications. In an April All-In episode, he expressed his desire for greater Silicon Valley involvement in U.S. defense efforts. He stated, “As an American, I want the U.S. to be the world’s leading power, and for our defense spending to be maximized. This requires innovation from startups within the defense industry.” (This week, OpenAI announced a partnership with defense contractor Anduril.)
Sacks strongly opposes censorship in AI models. This aligns with Elon Musk’s stance; Musk’s AI model, Grok, generates controversial images that other AI models avoid, including those of a sexually suggestive nature.
However, several other prominent figures will also exert influence on AI policy within the Trump White House, including Marc Andreessen, who advocates for unimpeded AI development, and Elon Musk, who has voiced concerns about existential AI risks.
Sacks and crypto
Sacks’ new role also encompasses crypto oversight. His appointment was well-received by crypto investors due to his pro-crypto stance and anticipated support for Trump’s policy of minimal crypto regulation. Sacks has invested in Solana, a blockchain-based cryptocurrency that previously faced regulatory challenges. Craft, Sacks’ VC firm, has also invested in BitGo and Bitwise.
Trump, in his statements, indicated that Sacks will work towards establishing a clear regulatory framework for the crypto industry to flourish in the U.S. Sacks joins other pro-crypto Trump appointees, including the SEC chair nominee, Paul Atkins. In contrast, the Biden administration’s SEC aggressively pursued legal action against crypto companies for alleged securities law violations.
Trump has actively sought to associate his administration with crypto’s successes. Upon Bitcoin surpassing $100,000, Trump boasted on Truth Social, “YOU’RE WELCOME!!!”
Concerns about conflict of interest
Despite Sacks’ support for both industries, his actual influence in this new role is uncertain. Bloomberg reported that Sacks will be a “special government employee”—a part-time position exempt from asset divestment or public disclosure requirements, with a maximum of 130 workdays annually. A Craft spokesperson confirmed that Sacks will not be leaving the firm.
The specifics of Sacks’ staffing and funding remain unclear. Other government agencies, like the Department of Commerce, may have differing processes and authorities regarding AI. “Czar roles are often informal, heavily reliant on personal relationships rather than formal authority,” Marda notes.
Suresh Venkatasubramanian, a Biden administration AI advisor (2021), expressed worry over the lack of oversight and potential conflicts of interest. “The press announcement describes duties largely mirroring the OSTP [Office of Science and Technology Policy] director’s responsibilities,” he told TIME. “The key difference is the absence of oversight. Given Sacks’ investments in AI and crypto, one must question whether this serves the broader tech industry’s interests or those of a select few.”
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