For much of 2024, David Sacks, a prominent figure in Silicon Valley, was a strong supporter of President-elect Donald Trump. An entrepreneur, venture capitalist, and co-host of the popular podcast “All-In,” Sacks used his platform to advocate for Trump’s policies, arguing that they would spur innovation and growth in the tech industry.
Sacks’s support has been rewarded with a key advisory role in the incoming administration. He has been appointed to the newly created position of “AI & crypto czar.” While the specifics of this role remain unclear, it is understood to be part-time, allowing Sacks to continue his work with his venture capital fund, Craft. This lack of clarity, coupled with the fact that the position does not require Senate confirmation, has raised concerns about potential conflicts of interest and the level of oversight.
Despite these concerns, Sacks will be in a position to influence policy decisions in the rapidly evolving fields of AI and cryptocurrency. Leaders within both industries have largely welcomed the appointment. “A whole-of-government approach that collaborates closely with private industry is essential to winning the AI race, and a designated AI leader in the Administration can help do that,” Tony Samp, the head of AI policy at DLA Piper, told TIME.
Sacks’s position is a result of his deep roots in Silicon Valley power structures. A member of the “PayPal mafia,” he served as that company’s chief operating officer and developed a close relationship with Elon Musk, another individual tapped for a role in the Trump administration. Sacks’s political views have become increasingly conservative, particularly regarding the Russia-Ukraine war and censorship on tech platforms. His podcast, “All-In,” is a popular tech podcast, according to Chartable.
Initially critical of Trump after the January 6th insurrection, Sacks later endorsed Trump during the year, including at the Republican National Convention. He has hosted Trump on “All-In,” where he voiced concerns over challenges to business during the Biden administration.
Sacks is also a participant in the AI ecosystem. He launched an AI-powered work chat app called Glue and supports policies promoting the growth of AI companies. Nik Marda, the technical lead for AI governance at Mozilla, stated, “This appointment is another signal that startups and venture capital will be a central focus of the incoming Administration’s approach to AI… This also means particular issues like promoting open source and competition in AI will be at the forefront.” Sacks supports the integration of AI technology into warfare and national security. He has stated his desire for the U.S. to have the most powerful defense and advocated for disruption of the defense industry with the use of cutting edge AI technology.
Sacks’s views on AI align with Musk, particularly in regard to censorship. However, other figures like Marc Andreessen and Musk will be competing for influence on AI policy within the White House.
Sacks’s purview also includes cryptocurrency. His appointment has been met with enthusiasm from crypto investors, who believe he will support Trump’s plans for light regulation in the sector. Sacks has financial ties to Solana, a cryptocurrency, as his VC fund has investments in several crypto companies. Trump has stated that Sacks will work on a “legal framework so the Crypto industry has the clarity it has been asking for.” Sacks joins other pro-crypto appointees, like SEC chair nominee Paul Atkins. The SEC under the Biden administration had been aggressive in suing crypto companies it viewed as violating securities laws.
Concerns have been raised about the lack of oversight in Sacks’s role. Bloomberg reported that Sacks will serve as a “special government employee”—a part-time role that doesn’t require him to divest or publicly disclose his assets, and sets a maximum number of 130 working days a year. A Craft spokeswoman said Sacks would continue at the VC firm. It remains to be seen if he will have a staff, or detail the exact source of his funding.
Suresh Venkatasubramanian, an AI advisor to the Biden White House, expressed concern about the lack of oversight and the potential for conflicts of interest. “The roles and responsibilities described in the press announcement describe a lot of what the director of OSTP [Office of Science and Technology Policy] does,” he noted. “The only difference is lack of oversight. Especially given that this particular appointment is of someone who has investments in AI and crypto, you have to wonder whether this is serving the interest of the tech industry, or a particular few individuals.”
