In a move that has both energized and alarmed industry watchers, President-elect Donald Trump has appointed David Sacks to a newly created role within his administration: “AI & crypto czar.” The appointment of this Silicon Valley insider highlights the importance that the incoming administration places on these burgeoning sectors of the economy.
Sacks, a prominent figure in the tech world, is a venture capitalist, entrepreneur, and co-host of the popular podcast ‘All-In.’ Throughout 2024, he was a vocal supporter of Trump, advocating for policies he believed would foster innovation and growth in the tech sector. This support included hosting a high-dollar fundraiser for Trump in San Francisco.
However, the appointment has raised eyebrows due to the particulars of the role. The czar position is slated to be part-time, allowing Sacks to remain with Craft, his venture fund, while advising the White House. This arrangement, coupled with the fact that the position does not require Senate confirmation, has fueled concerns about potential conflicts of interest and a lack of proper oversight.
Leaders within the AI and crypto industries have largely welcomed the appointment. Tony Samp, head of AI policy at DLA Piper, told TIME, “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.”
Sacks is deeply connected within Silicon Valley’s power structure. A member of the “PayPal mafia,” he also grew close with Elon Musk, who has likewise been given a new role in the forthcoming administration. Initially, Sacks held views that largely aligned with pro-Democrat stances, but he increasingly adopted conservative viewpoints, particularly on issues related to the war in Ukraine and censorship on tech platforms. His podcast, ‘All-In’, is currently one of the top tech podcasts on Apple Podcasts.
Despite past criticism of Trump, Sacks was a fervent supporter during this year’s campaign, including a speech at the Republican National Convention (RNC) in which he warned of a “world on fire.” He also hosted Trump on ‘All-In,’ where he expressed frustrations about business conditions during the Biden administration.
Sacks’s deep involvement does not stop at commentary; he’s also directly involved in the AI space. He launched Glue, an AI-powered work chat app this year. He has been a proponent of a less regulated AI ecosystem to encourage growth and has supported the application of AI training data to public information under the concept of fair use. Nik Marda, the technical lead for AI governance at Mozilla, noted, “This appointment is another signal that startups and venture capital will be a central focus of the incoming Administration’s approach to AI.”
He has also expressed support for incorporating AI into defense and national security tools, telling listeners on ‘All-In’ that he hoped Silicon Valley would become more involved in U.S. defense efforts, pointing to the necessity of disruptive innovation in order to improve defense outcomes. (OpenAI recently announced a partnership with the defense contractor Anduril.) Sacks also opposes AI models displaying any form of censorship, aligning him with figures like Elon Musk.
However, many prominent thinkers will likely compete for influence, including Marc Andreessen, who wants AI development to quicken, and Musk, who has cautioned of the technology’s existential risks.
Regarding cryptocurrency, Sacks’s new role is expected to reinforce Trump’s desire for light-touch regulation. Sacks has financial entanglements with Solana, a cryptocurrency, and his venture fund has invested in crypto companies. Consequently, Trump wrote that Sacks would work toward “a legal framework so the Crypto industry has the clarity it has been asking for, and can thrive in the U.S.”
Despite industry enthusiasm, there are questions about the practical scope of Sacks’s role. As a “special government employee,” his part-time status means he does not need to divest from his assets. Suresh Venkatasubramanian, an AI advisor to Biden’s White House, raised concerns about the lack of formal structure around the position and the potential for conflicts of interest, suggesting the responsibilities overlap with those of the director of the Office of Science and Technology Policy, but without the same level of oversight.
