David Sacks, a prominent venture capitalist and member of the legendary ‘PayPal Mafia,’ has been appointed as President-elect Donald Trump’s artificial intelligence and crypto czar, marking a significant expansion of Silicon Valley’s influence in the incoming administration. The announcement, made on December 5, positions Sacks as a key figure in shaping America’s AI policy and technological leadership.
Born in Cape Town, South Africa in 1972, Sacks immigrated to Tennessee at age five and later attended Stanford University, where he forged a lasting friendship with controversial billionaire Peter Thiel. The two championed conservative causes together, with Sacks serving as editor-in-chief of the Stanford Review, a libertarian newspaper Thiel founded. After graduating from law school at the University of Chicago, Sacks joined the tech world, becoming COO of PayPal from 1999 to 2002, when eBay acquired the company.
Sacks’ career trajectory demonstrates his deep roots in Silicon Valley’s elite circles. He’s a member of the exclusive “PayPal Mafia” alongside Elon Musk, Peter Thiel, and LinkedIn co-founder Reid Hoffman. After PayPal, he produced the Golden Globe-nominated film “Thank You for Smoking” before returning to tech by founding Yammer, a workplace communications company that Microsoft acquired for $1.2 billion in 2012. In 2017, he co-founded Craft Ventures, his current venture capital firm, and has invested in major companies including Facebook, Palantir, and SpaceX.
His political evolution has been notable. Despite once declaring Trump “clearly responsible” for the January 6 riot and “disqualified” from national candidacy, Sacks became a major Trump supporter by 2024, hosting a fundraiser that raised over $12 million with tickets selling for up to $300,000 per person. He also secured a speaking slot at the Republican National Convention and co-hosts the influential “All-In” podcast, popular among Silicon Valley conservatives.
In his new role, Sacks will guide AI and cryptocurrency policy, serving as a liaison between the executive branch, private sector, and regulatory agencies. Trump stated that Sacks will “focus on making America the clear global leader in both areas” and “safeguard Free Speech online.” As a special government employee, Sacks won’t require Senate confirmation, can work up to 130 days annually, and won’t have to divest his assets, though he must recuse himself from matters affecting his holdings. He will remain at Craft Ventures while serving in this capacity.
Key Quotes
David will focus on making America the clear global leader in both areas. He will safeguard Free Speech online, and steer us away from Big Tech bias and censorship.
President-elect Donald Trump announced Sacks’ appointment on Truth Social, outlining the administration’s priorities for AI and crypto leadership with an emphasis on free speech and reducing perceived tech industry bias.
It does not represent who I am today or what I believe today. I’m embarrassed by some of my former views and regret writing them.
Sacks apologized in 2016 for controversial statements in ‘The Diversity Myth,’ a book he co-authored with Peter Thiel during their Stanford days, demonstrating his evolution from his early provocative conservative positions.
On January 8, 2021, Sack said on an episode of his podcast that Trump was ‘clearly’ responsible for the January 6 riot and had ‘disqualified himself from being a candidate at the national level.’
This quote highlights Sacks’ dramatic political shift from Trump critic to major supporter and administration official, illustrating the changing dynamics within Silicon Valley’s political landscape between 2021 and 2024.
Our Take
Sacks’ appointment as AI czar represents the venture capital industry’s direct capture of AI policy-making. This isn’t merely about bringing tech expertise to government—it’s about ensuring that AI development proceeds with minimal regulatory friction, prioritizing innovation and competitiveness over safety concerns. The fact that Sacks can maintain his investment portfolio while shaping AI policy creates obvious conflicts, particularly given his stakes in companies that will directly benefit from his decisions. His close relationships with Musk, Thiel, and other tech titans mean AI policy will likely favor incumbent players and their vision of unfettered technological development. The coupling of AI with cryptocurrency oversight is particularly telling, suggesting the administration views both as deregulation opportunities rather than areas requiring careful governance. While American AI leadership is important, concentrating policy influence in the hands of a small, interconnected group of venture capitalists raises serious questions about whose interests will truly be served.
Why This Matters
This appointment represents a pivotal moment in AI governance and policy formation in the United States. By selecting a Silicon Valley insider with deep connections to major tech players like Elon Musk, Peter Thiel, and Mark Zuckerberg, Trump is signaling a tech-friendly, deregulation-focused approach to AI development. Sacks’ dual role overseeing both AI and cryptocurrency suggests the administration views these technologies as interconnected priorities for American competitiveness.
The implications extend beyond policy to industry dynamics. With direct access to the White House, AI companies may face fewer regulatory hurdles, potentially accelerating innovation but raising concerns about oversight and safety. Sacks’ investment portfolio—including stakes in major AI-adjacent companies—creates potential conflicts of interest, though his special employee status allows him to maintain these holdings. His emphasis on “Free Speech online” and steering away from “Big Tech bias” suggests content moderation and AI censorship will be key focus areas. This appointment solidifies the growing political influence of the PayPal Mafia and signals that AI policy will be shaped by venture capital perspectives rather than traditional regulatory frameworks.
Recommended Reading
For those interested in learning more about artificial intelligence, machine learning, and effective AI communication, here are some excellent resources: