David Sacks Shaped Trump's Hands-Off AI Policy Despite Bipartisan Push for Regulation

As artificial intelligence researchers warn of existential risks and lawmakers from both parties call for oversight, the Trump administration has taken a starkly different path—one shaped largely by venture capitalist David Sacks.

Sacks, who served as Trump's AI and crypto czar before stepping down in March 2026, has maintained extraordinary influence over the president's approach to AI policy. That influence has consistently pushed the White House toward deregulation, even as Republican senators, former Trump advisers, and the CEOs of major AI companies advocate for safety measures.

The Guardian first reported on Sacks' role in what critics are calling Trump's "biggest miscalculation" on technology policy.

Why it matters

The Trump administration's resistance to AI regulation represents a significant departure from emerging global consensus on technology governance. With Sacks maintaining direct financial stakes in multiple AI companies through his firm Craft Ventures—which manages $3.3 billion in assets—the policy direction raises questions about conflicts of interest at the highest levels of government. The approach also puts Trump at odds with 85% of Republican voters who support strong AI safety action, according to polling.

A Pattern of Deregulation

Sacks' fingerprints appear on virtually every major AI policy decision from the Trump White House. In December 2025, Trump signed an executive order halting state AI laws and creating a federal taskforce—with Sacks directing litigation against states. Four months later, the White House unveiled policy encouraging Congress to pre-empt state rules. In July, Trump and Sacks co-hosted an AI summit in Washington.

Most recently, when Anthropic employee Jacob Coxon resigned with warnings that AI could cause human extinction by 2030, Sacks dismissed calls for regulation as an "election-season psyop" and "regulatory capture." He rejected a proposal from Anthropic CEO Dario Amodei—backed by OpenAI's Sam Altman, Google DeepMind's Demis Hassabis, and Elon Musk—calling third-party AI evaluations "pseudoscience" and "censorship."

The PayPal Mafia Connection

Sacks emerged from the influential "PayPal Mafia" alongside Thiel and Musk. After co-founding Craft Ventures in 2017, he shifted politically rightward, hosting a $500,000-per-couple fundraiser for Trump at his $45 million San Francisco mansion in 2024.

His appointment as AI czar came with unusual terms: as a "special government employee," Sacks worked a maximum 130 days annually, avoiding confirmation hearings or financial disclosure requirements. Though the Office of Government Ethics required some AI divestments from Craft Ventures, Sacks maintained substantial technology investments.

Internal White House Tensions

Sacks' influence has created friction within the administration. The Wall Street Journal reported that Treasury Secretary Scott Bessent and Chief of Staff Susie Wiles both voiced concerns about AI risks and urged increased oversight. Trump consistently sided with Sacks.

"Running the David Sacks playbook on AI might be the biggest miscalculation the Trump administration has made," said Sacha Haworth, executive director of the Tech Oversight Project. "Republicans are going to follow big tech executives right over a cliff."

More than 100 AI researchers, including "godfather of AI" Geoffrey Hinton, signed a letter urging third-party model evaluations. Trump is expected to host Chinese leader Xi Jinping and several AI CEOs at the White House next week, with Sacks among the invited guests.

Neither Sacks nor the White House responded to requests for comment, according to The Guardian's reporting.