Trump Appoints David Sacks, Ex-Paypal Exec, to Newly Formed AI and Crypto Czar Position
- President-elect Donald Trump has appointed David Sacks, a venture capitalist and former CEO of Yammer, as the White House AI and Crypto Czar, signaling a potential era of less regulation on artificial intelligence and Big Tech.
President-elect Donald Trump continues to add heads to his incoming administration.
This time, he’s announced his pick for White House AI and Crypto Czar in David Sacks, venture capitalist, former CEO of employee communication software Yammer and former chief operating officer of PayPal .
More from Sourcing Journal
Experts already project that the Trump administration will usher in an era of less regulation on artificial intelligence and Big Tech. That sentiment may be further confirmed by Sacks’ appointment, which the former president announced on Truth Social Thursday evening.
“In this important role, David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness,” Trump posted. “[He] 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.”
In a second post, Trump lauded Sacks’ professional accomplishments. On his X account, Sacks thanked the president-elect for the appointment.
“Thank you Mr. President. I am honored and grateful for the trust you have placed in me. I look forward to advancing American competitiveness in these critical technologies. Under your leadership, the future is bright!” he wrote.
Based on Sacks’ past work in the technology and cryptocurrency spheres, it’s likely that he will be “All-In” (the name of his podcast) on a deregulatory approach, particularly when it comes to AI, said Adrian McGarry of technology and information-focused Ascot London Consulting.
“Sacks is known for his pro-innovation stance and is likely to push for a regulatory environment that favors technological advancement and minimal restrictions, which could lead to a more favorable landscape for AI development and deployment, encouraging Big Tech companies to innovate without the fear of stringent regulations,” McGarry told Sourcing Journal.
Federal deregulation of AI in the United States could make it easier for technology companies to develop and test models, in turn amping up the already rapid pace AI development proliferates at.
At The New York Times’ DealBook Summit this week, Jeff Bezos, executive chairman of Amazon , made it clear that deregulation would be a welcome friend for the technology and e-commerce company.
“[Trump] seems to have a lot of energy around reducing regulation. And from my point of view, if I can help him do that, I’m going to help him, because we do have too much regulation in this country,” Bezos said.
Deregulation, while helpful for Big Tech, doesn’t necessarily mean that retailers would have an easier time deploying third-party applications at scale.
Some tenets outlined in the EU AI Act , which many companies will need to adhere to if they operate in—or sell into—the bloc, will take effect in 2025, limiting certain use cases of AI. Similarly, some state legislatures have begun vetting their own laws and provisions around AI, given that the federal government in the U.S. has not passed a legally binding AI-centric package.
That may allow patchwork-style legislation to creep into the AI sector. California has been an early mover on passing such laws, but Governor Gavin Newsom failed to sign the most impactful law passed by the state’s legislature earlier this year.
As states evaluate their individual stances on what’s acceptable when it comes to AI and what isn’t, retailers may find themselves struggling to keep up with varied and piecemeal legislation, experts have told Sourcing Journal.
Trump’s pick may also further display the strength of X and Tesla owner Elon Musk’s influence on the incoming president. The incoming administration has called on Musk and Vivek Ramaswamy to co-lead the newly created Department of Government Efficiency.
Sacks and Musk worked together in PayPal’s early days, and have continued their connection over the course of several decades. Both of the men supported Trump along the campaign trail.
Ultimately, Musk stands to benefit from Sacks’ appointment in several ways. Because Musk, Sacks and Vivek Ramaswamy, who will co-lead DOGE with Musk, will all sit in unofficial governmental roles, they won’t be required to give up their roles at their respective companies. Musk is in a race against Sam Altman, CEO of OpenAI, which Musk co-founded with him, as he builds out his own competitor, xAI, and continues to explore how AI can improve operations for Tesla. A general deregulatory attitude toward Big Tech could benefit both companies.
Altman took to X to congratulate Sacks on his new appointment; Musk, who is now battling Altman in court and has shared some terse words with the OpenAI CEO, took that as an opportunity to jab at him, replying to his post with a laughing face.
Experts said they still have questions over how much power Musk, Ramaswamy and Sacks will truly have in the Trump administration. Nonetheless, Musk’s competitors said publicly at the DealBook Summit that they’re not worried about Musk exercising outsized influence on Trump over the next several years.
McGarry said that while Sacks won’t be able to make rules directly, it’s still likely that he will be called upon to participate in important discussions at the agency level, with the Securities and Exchange Commission ( SEC ), the Federal Trade Commission ( FTC ) or otherwise.
“Although the AI and Crypto Czar is not…[an] agency position, Sacks’ role will still be influential. He will likely serve in an advisory capacity, shaping policy through recommendations and strategic guidance. His influence will stem from his ability to advise [Trump] and other key officials on AI and cryptocurrency matters,” he noted.
It remains to be seen how Sacks wields his influence. But for the moment, Musk’s competitors don’t seem to be worried about him or Sacks unfairly working to benefit xAI and Tesla.
“I take at face value what has been said, which is that, you know, he is not going to use his political power to advantage his own companies or to disadvantage his competitors,” Bezos said at DealBook.
Altman, despite his personal troubles with Musk, shared a similar sentiment during his conversation at DealBook.
“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,” he said.
