In the early months of 2024, David Sacks became a prominent advocate for President-elect Donald Trump within Silicon Valley. As an entrepreneur and venture capitalist, Sacks is also recognized for co-hosting the popular podcast All-In. Through his podcast and various other social media channels, he actively promoted Trump’s initiatives aimed at driving innovation and stimulating economic growth in the technology field. In June, he took the lead in organizing a major fundraiser for Trump in San Francisco, with ticket prices astonishingly reaching $300,000 each.

In a surprising development, Sacks has been named the new “AI & crypto czar” in the White House. While the specific responsibilities of this role remain somewhat unclear, it is anticipated to be part-time, allowing Sacks to maintain his position at his venture capital firm, Craft. The ambiguity surrounding the role, coupled with the fact that Sacks will not undergo Senate confirmation, has sparked concerns about possible conflicts of interest and the lack of supervisory measures. Nevertheless, Sacks will enjoy direct communication with Trump regarding critical policy decisions impacting these swiftly evolving sectors, a move generally welcomed by leaders in both AI and cryptocurrency.

“An effective government strategy that works in tandem with the private sector is essential for preserving a competitive edge in AI, and having a designated leader in the administration can make that happen,” stated Tony Samp, who oversees AI policy at DLA Piper, in an interview with TIME.

David Sacks and Donald Trump

Sacks has long been a significant player in Silicon Valley’s elite circles. As part of the “PayPal mafia,” he held the position of chief operating officer at the company and built close relationships with notable figures like Elon Musk, who has also received a significant appointment in Trump’s Administration. During the Obama presidency, many in Silicon Valley leant towards Democratic principles, but Sacks began voicing more conservative opinions, especially on issues like the Russia-Ukraine conflict and the need to address censorship on technology platforms. His podcast All-In has gained traction, ranking as the third most popular tech podcast on Apple Podcasts, as reported by Chartable.

Following the January 6 insurrection, Sacks remarked that Trump had “disqualified himself from running for national office again.” However, he reversed his position this year, publicly endorsing Trump during a speech at the Republican National Convention (RNC) in July, where he cautioned that Republicans were facing a “world on fire.” At a lavish fundraiser, he encouraged Trump to consider J.D. Vance as his running mate. Moreover, Sacks welcomed Trump as a guest on All-In, expressing his frustrations regarding the difficulties of doing business during the Biden Administration.

Sacks’ Perspective on AI

Sacks is also deeply engaged in the AI realm; earlier this year, he launched an AI-based work chat platform called Glue. He advocates for a more open environment that allows AI startups to thrive, arguing that a substantial portion of online content should be available for AI training under fair use guidelines.

“This appointment indicates that the new Administration will emphasize the importance of startups and venture capital in its AI strategy,” noted Nik Marda, Mozilla’s AI governance technical lead. “This suggests that vital issues like promoting open-source projects and fostering competition in AI will be prioritized.”

Additionally, Sacks has been an advocate for the application of AI technologies in military and national security contexts. During an episode of All-In in April, he expressed optimism that Silicon Valley firms would enhance their participation in U.S. defense projects. “As an American, I want the U.S. to stay the most powerful nation. I want to maximize the efficiency of our defense expenditures. The only way to accomplish that is by involving innovative startups in the defense sector,” he stated. (Recently, OpenAI announced a partnership with defense contractor Anduril.)

Sacks has firmly opposed any form of censorship in AI systems. In this regard, he shares views with Musk, whose AI model Grok is intended to produce controversial content that other AI systems may avoid, including instances like a Nazi Mickey Mouse.

Read More: Elon Musk’s New AI Data Center Raises Alarms Over Pollution

However, within Trump’s administration, Sacks will encounter competition for influence from other notable figures in the AI space, including Marc Andreessen, who advocates for rapid AI advancement, and Musk, who has voiced concerns regarding potential existential risks associated with the technology.

Sacks and Cryptocurrency

Alongside his focus on AI, Sacks will also take charge of cryptocurrency efforts in his new capacity. His appointment has been met with enthusiasm from crypto investors, as Sacks is recognized for his supportive views on the sector and is expected to bolster Trump’s agenda of maintaining relaxed regulations. He has made considerable investments in Solana, a cryptocurrency tied to its own blockchain, which was previously endorsed by Sam Bankman-Fried. His venture capital firm, Craft, has also invested in crypto companies like BitGo and Bitwise.

During the announcement of Sacks’ appointment, Trump indicated that he would be responsible for crafting “a legal framework that brings the clarity the crypto industry has sought to thrive in the U.S.” Sacks joins a wave of recent pro-crypto appointments under Trump, including Paul Atkins, the new nominee for SEC chair. In stark contrast, the Biden administration’s SEC has aggressively pursued legal actions against crypto companies it deemed to be in violation of securities laws.

Trump has also been eager to take credit for the recent successes of cryptocurrency. When Bitcoin first crossed the $100,000 threshold, he jubilantly proclaimed on his social media platform, Truth Social, “YOU’RE WELCOME!!!”

Read More: What Trump’s Win Means for Crypto

Concerns Regarding Conflicts of Interest

Despite Sacks’ enthusiasm for both AI and cryptocurrency, the extent of his actual authority in this new position remains uncertain. Bloomberg has reported that Sacks will serve as a “special government employee,” a part-time role that does not necessitate him to divest his investments or make them public, with a limit of 130 working days each year. A representative from Craft confirmed to Bloomberg that Sacks will continue to work at the venture firm.

It is still unclear whether Sacks will have a dedicated team or how the funding for his initiatives will be structured. Other governmental agencies, such as the Department of Commerce, may operate under entirely different frameworks and priorities concerning AI. “Czar roles can often be rather unconventional, leaning more on personal connections than formal authority,” Marda pointed out.

Suresh Venkatasubramanian, who served as an AI advisor in Biden’s White House in 2021, has raised alarms about the lack of oversight tied to this new position, as well as the potential conflicts of interest it entails. “The responsibilities mentioned in the press release are similar to those typically associated with the director of the OSTP [Office of Science and Technology Policy],” he told TIME. “The main distinction is the absence of oversight. Given that this appointment involves someone with financial stakes in AI and crypto, it raises concerns about whether this role will benefit the broader tech industry or just a select few.”