David Sacks seen bringing 'on the ground' experience to AI's global challenges

Mark Schoeff Jr., CQ-Roll Call on Dec 9, 2024

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WASHINGTON — David Sacks, who has funded and run high-tech firms, has “on the ground” experience to deal with increasing global competition on artificial intelligence and cryptocurrency, a lawmaker and technology groups said after President-elect Donald Trump tapped him to head government efforts in the areas.

Trump named Sacks his “White House AI & Crypto Czar” in a post last week on the Truth Social platform. Sacks is a partner at Craft Ventures, a high-tech venture capital fund, a former executive at PayPal Holdings Inc., and founder of Yammer, a social network for corporate communication.

Sen. Todd Young, R-Ind., praised the establishment of the czar job, saying it could bolster the United States on the world stage.

“Tech power — AI, crypto, and more — is fundamentally transforming our economy, security, and the very nature of global power,” Young, a member of the Senate’s bipartisan AI working group, posted on the social media platform X on Thursday. “With the appointment of a White House AI and Crypto Czar, President Trump and his administration will be positioned to restore ‘Peace through Strength’ and seize the opportunities this dynamic period presents.”

Daniel Castro, director of the Center for Data Innovation at the Information Technology and Innovation Foundation, said China is making significant investments in AI and rapidly catching up to the United States while many other countries are leaping ahead in deploying AI. Sacks has “been right multiple times” in successfully bringing new tech companies into existence, giving him the background to help develop ways for the U.S. to compete, Castro said.

“When you have someone appointed at this high level, they’re going to be taken seriously and have credibility,” Castro said. “What’s good is that you have someone in this role who can represent what’s happening on the ground in Silicon Valley.”

Satya Thallam, senior vice president of government affairs for Americans for Responsible Innovation, said Sacks “has a tough job cut out for him,” citing in part international AI competition.

“As other nations try to write the global rules of the road for AI, our leadership on this emerging tech is at stake,” Thallam said in a statement. “Sacks has a direct line with current innovators in the field and knows what America’s tech startups need to grow. New markets need clarity, trust, and transparency to thrive.”

The Financial Technology Association also welcomed Sacks’ appointment.

“We have been encouraging the incoming Administration to bring in innovation-minded personnel who understand emerging technologies and how best to position the U.S. in a growing global digital financial world,” FTA spokesperson Miranda Margowsky wrote in an email.

Trump emphasized “competitiveness” in announcing Sacks’ appointment.

“David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness,” Trump wrote on Truth Social. “David will focus on making America the clear global leader in both areas.”

Trump said Sacks also will lead the Presidential Council of Advisors on Science and Technology.

He announced his choice of Sacks as the Justice Department is suing Google LLC in federal court for alleged monopoly practices in internet search. One remedy it has proposed is forcing Google to sell its Chrome browser. Trump didn’t mention the Google case.

“(Sacks) will safeguard Free Speech online, and steer us away from Big Tech bias and censorship,” he said.

Sacks’ selection, which does not require Senate confirmation, comes a couple of days after Trump said he would nominate Paul Atkins to be chairman of the Securities and Exchange Commission.

Atkins, an adviser to the Token Alliance and former SEC commissioner, is seen as someone who will promote the development of cryptocurrency. Crypto backers expect him to be a sharp contrast to current SEC Chair Gary Gensler, a crypto opponent who frequently warns of investor harm in crypto markets.

Trump used to be skeptical of crypto as well but embraced the sector during his third campaign for the White House. The industry poured tens of millions of dollars into House and Senate campaigns to help elect what advocates are calling a pro-crypto Congress.

“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.,” Trump said of Sacks in his Truth Social post.

Sacks also will have to help sort out AI’s role in the Trump administration’s effort to reduce the size of government, an advisory initiative informally known as the “Department of Government Efficiency” led by Tesla Inc. CEO Elon Musk and entrepreneur and former GOP presidential candidate Vivek Ramaswamy.

“Are we going to see less government or government in a supporting role (to AI) or the use of AI to make the government more efficient?” Castro said.

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