David Sacks: What You Need to Know About Trump's AI and Crypto Czar Appointment

Tech founders and Silicon Valley VCs who backed Donald Trump — both with their support and financial contributions — are now being richly rewarded. Just after securing the 2024 election, Trump appointed one of his staunchest supporters, Elon Musk, to lead a newly created agency: the U.S. Department of Government Efficiency, or DOGE.

Trump is now rewarding another loyal tech founder: investor and podcaster David Sacks.

"I am pleased to announce that David O. Sacks will be the 'White House A.I. & Crypto Czar,'" Trump declared in a post on his social media platform, Truth Social. "In this crucial role, David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas vital to America's future competitiveness."

Trump explained that Sacks will focus on "safeguarding Free Speech online" and developing a "legal framework" for the cryptocurrency industry. Additionally, Sacks will lead the Presidential Council of Advisors for Science and Technology.

Sacks will play a key role in shaping policies on both the rapidly advancing field of AI and the cryptocurrency industry, which, despite its issues with fraud, is hoping for favorable treatment after its support of Trump.

"Congrats to czar @DavidSacks!" OpenAI's Sam Altman posted on X shortly after the announcement from Trump.

Who is David Sacks?

David Sacks is a prominent tech entrepreneur and investor, best known for his role as a co-founder of PayPal and as a key figure in the "PayPal Mafia," a group of influential tech leaders who went on to create successful ventures. Sacks helped grow PayPal from its early stages, serving as its COO and product leader. He also co-founded Yammer, a social network for businesses, which was later acquired by Microsoft for $1.2 billion.

In addition to his entrepreneurial achievements, Sacks is a venture capitalist, co-founding Craft Ventures in 2017. The firm focuses on early-stage investments in technology companies, and under his leadership, it raised substantial funds, reaching $2 billion in assets under management by 2021.

Beyond his business ventures, Sacks has been active in political and social issues, hosting fundraisers and publicly aligning with figures such as Elon Musk. He also co-hosts the "All In" podcast, where he discusses various topics including tech, politics, and economics.

Frequent users of Musk's X (formerly Twitter) may have come across David Sacks' posts, particularly those concerning Russia's invasion of Ukraine. His views on the war have sparked controversy, with many accusing him of expressing pro-Russia sentiments and downplaying Ukraine's plight. Additionally, his rhetoric has been criticized for fueling fears about the potential for a World War III scenario.

David Sacks and Elon Musk share a history and similar backgrounds, both having emigrated from South Africa to the U.S. Sacks worked alongside Peter Thiel at PayPal in 1999, joining Musk in the "PayPal Mafia"—a group of former PayPal employees and founders who later achieved further success with their own tech ventures.

In 2008, David Sacks co-founded Yammer, a social media platform designed for businesses. The company quickly gained traction and was acquired by Microsoft for $1.2 billion in 2012. Following the acquisition, Microsoft integrated Yammer into its suite of Microsoft 365 products, enhancing collaboration tools for enterprise users.

Since co-founding Yammer, David Sacks has become a notable investor in tech startups and launched his own venture capital firm, Craft Ventures, in 2017. In 2020, he co-hosted the *All-In Podcast* with Jason Calacanis, Chamath Palihapitiya, and David Friedberg, where they discuss business and current events. The podcast, popular in tech circles, has leaned more toward right-wing politics over time. This includes hosting an interview with Donald Trump in June and Sacks broadcasting live from the Republican National Convention.

In recent years, Sacks has gained attention for his outspoken opposition to progressive politicians and has increasingly aligned himself with conservative causes. Although he initially criticized Trump’s involvement in the January 6 Capitol insurrection, Sacks later reversed his stance, hosting a high-profile fundraiser for Trump’s campaign. His pro-Trump stance seems to have paid off politically, unless unforeseen conflicts arise with the former president.

The Growing Influence of Tech Founders in Politics

The lines between Silicon Valley and Washington have increasingly blurred, with tech founders like Elon Musk and David Sacks playing pivotal roles in shaping both industries. As technology continues to play a central role in our daily lives, it has naturally influenced the political landscape. Figures such as Musk and Sacks have not only transformed the tech world but are now deeply embedded in political discourse and policymaking.

Musk's appointment to lead the newly formed U.S. Department of Government Efficiency (DOGE) after Trump’s 2024 election victory is a prime example of how tech entrepreneurs are reshaping governance. His influence isn't just limited to the companies he owns, but extends to the regulatory frameworks surrounding social media, electric vehicles, and space exploration. Likewise, David Sacks' new role as the White House A.I. & Crypto Czar illustrates a growing trend: more tech founders are using their expertise and influence to guide national policies on emerging technologies like artificial intelligence and cryptocurrency.

This intersection of tech and politics raises critical questions about the power of unelected individuals in shaping public policy. While tech leaders have long held sway through their companies, their direct involvement in government positions is a relatively recent phenomenon. Critics argue that this concentration of power in the hands of a few could skew policy decisions in favor of corporations rather than the public. On the other hand, proponents assert that tech-savvy leaders like Musk and Sacks are uniquely qualified to tackle the complexities of modern issues, such as regulating rapidly advancing technologies or addressing global challenges like climate change.

As Sacks steps into his new role, he is poised to influence not only the future of AI and cryptocurrency but also the broader tech industry’s relationship with the government. This new wave of political engagement from Silicon Valley’s most powerful figures could redefine how future policies are shaped, leading to a more technology-centric government. Whether this shift is beneficial or problematic is still up for debate, but one thing is certain: the tech elite’s involvement in politics is here to stay​.

Impact of AI and Cryptocurrency Policy

David Sacks’ appointment as the U.S. "AI & Crypto Czar" under Trump has raised significant questions about the future of regulation in two of the most volatile and rapidly evolving sectors: Artificial Intelligence and cryptocurrency. His background in both tech and finance positions him as a powerful figure to influence policy in these areas, especially as both industries face increasing calls for regulatory frameworks to manage their potential risks and growth.

However, Sacks' close ties to the crypto industry, especially through his venture capital firm Craft Ventures, which has invested in blockchain and cryptocurrency startups like BitGo and Bitwise, has prompted concerns about potential conflicts of interest. Many within the tech and financial sectors expect him to push for a more hands-off approach to crypto regulation, aiming to foster innovation while sidestepping stringent rules that could stifle growth. This aligns with the pro-business stance that Sacks has consistently advocated for, having worked with high-profile figures in Silicon Valley, including Elon Musk.

Regarding AI, Sacks has a significant opportunity to shape U.S. policy on the technology’s ethical use, safety, and international competitiveness. The fast-paced development of AI has left regulators scrambling, and Sacks’ role will likely influence decisions about its deployment across industries like healthcare, defense, and finance. However, critics worry that his ties to the business side of tech could lead to policies that favor large corporations over individual privacy and ethical concerns. This appointment has sparked debate about whether such positions should be held by individuals with stronger public service backgrounds, rather than those with deep private-sector interests.

In short, while Sacks’ appointment signals potential growth and deregulation in the AI and cryptocurrency industries, it also raises significant concerns about the concentration of power in the hands of those with a vested interest in the very sectors they’re meant to regulate. His next moves will be crucial in determining whether his leadership will bring about a fair balance between innovation and public protection, or whether it will further entrench corporate interests at the expense of societal welfare.