Donald Trump Taps Venture Capitalist David Sacks as His 'AI & Crypto Czar'

President-elect Donald Trump has selected David Sacks, a Silicon Valley heavyweight and close ally of Elon Musk, to lead the White House's policy on emerging technologies, including artificial intelligence and cryptocurrency. The announcement, made late Thursday via Truth Social, marks a pivotal moment as the new administration gears up to overhaul U.S. tech policy.

Sacks’ appointment signals a shift in Washington’s approach to technology, with the tech industry’s conservative-libertarian voices now set to play a leading role in shaping policy. For years, these figures have criticized federal regulations as barriers to innovation. Now, they have a chance to implement their vision.

Trump’s Tech Agenda

The Trump administration has pledged to deregulate the cryptocurrency industry, undo President Biden's executive order on artificial intelligence, and prioritize beating China in the global AI race. Trump’s choice of Sacks aligns with these goals, given his background in tech innovation and libertarian ideals.

In his announcement, Trump wrote that Sacks "will safeguard Free Speech online and steer us away from Big Tech bias and censorship. He will work on a legal framework so the Crypto industry has the clarity it has been asking for and can thrive in the U.S."

Who is David Sacks?

Sacks, a co-founder of PayPal, has deep ties to Silicon Valley. He worked alongside Musk and Peter Thiel and has invested in companies like SpaceX and Palantir. Sacks co-hosts the popular All In podcast.

This year, he also launched Glue, an AI-powered competitor to Slack, and runs his own venture capital firm. Sacks hosted a fundraiser for Trump in June and spoke at the Republican National Convention in July, signaling his close alignment with the administration.

How Will Sacks Operate?

Sacks will serve as a "special government employee," a role that allows him to work up to 130 days a year without facing Senate confirmation hearings or financial disclosure requirements. This setup gives him influence without the full responsibilities of a formal office.

Sacks will also chair the President's Council of Advisors on Science and Technology, although his authority is expected to be more advisory than executive.

Concerns About Conflicts of Interest

While Sacks’ expertise is celebrated, his dual roles as a public servant and private entrepreneur are raising eyebrows. Critics note that Sacks, like Musk, will continue running his businesses while shaping policies that could directly impact his companies and competitors.

However, OpenAI CEO Sam Altman addressed such concerns at the DealBook Summit in New York: "It would be profoundly un-American to use political power, to the degree that Elon has it, to hurt your competitors and advantage your own businesses. I don't think people would tolerate that. I don't think Elon would do it."

What to Watch For

While Trump has dubbed Sacks a "czar," his role appears to be more advisory, leaving questions about how much influence he will ultimately wield. As Sacks begins his work in Washington, his proposals are sure to spark debates about who benefits and whether his industry ties could pose conflicts of interest.

With emerging technologies like AI and crypto at the forefront of policy discussions, Sacks’ position is likely to be a lightning rod for controversy.