David Sacks speaks during the first day of the 2024 Republican National Convention at the Fiserv Forum in Milwaukee on July 15, 2024.Andrew Caballero-Reynolds/AFP via Getty Images
December 7, 2024—President-elect Donald Trump has appointed David Sacks, a prominent venture capitalist and tech entrepreneur, to the newly created position of “AI and Crypto Czar.” The announcement was made during the Republican National Convention in Milwaukee, Wisconsin, where Sacks’ support for Trump was prominently showcased. This part-time role, designed to shape policy in two of the fastest-growing tech sectors, has ignited both enthusiasm and concern within the industry.
David Sacks is a familiar name in Silicon Valley. A member of the influential “PayPal Mafia,” Sacks is known for his ventures in startups and his outspoken conservative views. In 2024, he hosted high-profile fundraisers for Trump, demonstrating his alignment with the president-elect’s pro-industry vision. At one such event in San Francisco, tickets cost $300,000 per person.
Sacks’ influence in technology, particularly in artificial intelligence (AI) and cryptocurrency, is evident. Earlier this year, he launched Glue, an AI-powered work app, and has been vocal about fostering an open AI ecosystem. He believes AI companies should leverage vast internet data under fair use policies, arguing that innovation flourishes with fewer constraints.
His appointment was welcomed by industry leaders like Tony Samp from DLA Piper, who emphasized the importance of government-private sector collaboration to stay competitive in the AI race. However, critics like Suresh Venkatasubramanian, a former AI advisor under Biden, expressed concerns over the position’s lack of oversight, pointing to potential conflicts of interest given Sacks’ extensive investments in AI and crypto companies.
Sacks also supports integrating AI into national security, urging Silicon Valley to disrupt the defense industry with innovative solutions. This stance aligns with Trump’s vision of a stronger defense system fueled by cutting-edge technology.
In addition to AI, Sacks will oversee cryptocurrency policy, a sector Trump has signaled support for with promises of light-touch regulation. Sacks’ portfolio includes investments in Solana and other blockchain startups, aligning with Trump’s pro-crypto narrative. Trump recently took credit for Bitcoin’s milestone of crossing $100,000, declaring, “YOU’RE WELCOME!!!” on his platform Truth Social.
While Sacks’ appointment has generated optimism among startups and venture capitalists, it has also raised questions about the true scope of his power. As a “special government employee,” Sacks is exempt from Senate confirmation and asset disclosure, leaving ambiguity around his influence and accountability.
The tech world remains divided. Supporters hail the move as a step toward fostering innovation, while critics warn it could prioritize the interests of a select few over broader industry needs. With Sacks and other tech heavyweights like Elon Musk joining Trump’s administration, the future of AI and crypto policy in the U.S. is poised for significant transformation.
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