The Power Games of Silicon Valley: The Double Life and Conflicts of Interest of David Sacks

Written by: Cecilia Kang, Tripp Mickle, Ryan Mac, David Yaffe-Bellany, and Theodore Schleifer, The New York Times

Compiled by: AididiaoJP, Foresight News

The New York Times published “Silicon Valley’s Man in the White House Is Benefiting Himself and His Friends” on December 1, 2025, at 01:34 (UTC), which pointed out that David Sacks had conflicts of interest during his tenure as the White House Chief of Artificial Intelligence and Cryptocurrency Affairs. Subsequently, David Sacks tweeted that given the New York Times' apparent intention to write an unfair report, he had hired the law firm Clare Locke, which specializes in defamation lawsuits, to handle the matter. Below is the full translation of the report:

In July of this year, David Sacks, a senior technology official in the Trump administration, took the stage with a beaming smile in a neoclassical auditorium just a few blocks from the White House. He gathered government officials and Silicon Valley executives to participate in a forum about the booming artificial intelligence industry.

The main guest of the forum is President Trump, who announced an “Artificial Intelligence Action Plan” partially drafted by veteran venture capitalist David Sacks. In a nearly hour-long speech, Trump stated that artificial intelligence is “one of the most important technological revolutions in world history.” He then signed an executive order aimed at accelerating the development of the industry.

Among the authoritative audience present, almost everyone, including the CEOs of chip manufacturers Nvidia and AMD, as well as David Sacks' friends, colleagues, and business partners in the tech industry, benefited from Trump's executive orders.

One of the winners is David Sacks himself.

David Sacks, 53 years old, has held a highly advantageous “part-time” role within the federal government since January: influencing Silicon Valley policies in Washington while still serving as an investor in Silicon Valley. As the White House's head of artificial intelligence and cryptocurrency, some of his actions include:

Provided an amazing White House networking channel for its tech peers and is committed to clearing government obstacles for artificial intelligence companies. This move is expected to bring new sales of up to $200 billion for giants like Nvidia.

The artificial intelligence policy recommendations it proposed sometimes conflict with national security recommendations, making some colleagues at the White House alert and raising questions about its priorities.

Conditions have been created for individuals to profit. According to an analysis of his financial disclosure documents by The New York Times, he holds 708 technology investments, of which at least 449 are related to the field of artificial intelligence, and these investments may directly or indirectly benefit from the policies he has helped formulate.

The New York Times found that although many companies promote themselves as AI enterprises, provide AI services, or have “AI” in their name, in their public filing materials, 438 tech investments were classified as software or hardware companies.

David Sacks also uses his government position to promote the visibility of his weekly podcast “All-In” and to expand related businesses.

To illustrate the ethical complexities and the intertwining of multiple interests that David Sacks faces, the artificial intelligence summit in July is a prime example. David Sacks initially planned for the forum to be hosted by the “All-In” podcast that he co-hosts with other tech investors. According to a proposal obtained by The New York Times, “All-In” had suggested to potential sponsors that each pay $1 million to participate in private receptions and other activities during the summit, which were aimed at “bringing together President Donald Trump and top AI innovators.”

President Trump spoke at an artificial intelligence summit in Washington in July, which was co-hosted by the tech podcast “All-In” and the organizers of the tech conference “Hill & Valley Forum.” Photo by: Kenny Holston/The New York Times

According to two informed sources, the plan has raised concerns among some officials, prompting White House Chief of Staff Susie Wiles to intervene and prevent “All-In” from being the sole organizer of the forum.

Former Trump advisor and Silicon Valley billionaire critic Steve Bannon stated that David Sacks is a typical representative of ethical conflicts in the current administration, and in his view, “the tech bros have gone out of control.”

“They are leading the White House down a path of destruction through this rising oligarchy,” he said.

David Sacks can serve in the government as a private sector practitioner because his status is that of a “Special Government Employee.” This title is typically granted by the White House to experts who provide consulting to the government on a short-term basis, and he holds a government position without compensation.

In March of this year, David Sacks received two ethical waivers from the White House, stating that he is in the process of or has sold most of his cryptocurrency and artificial intelligence assets. The waivers state that his remaining investments “have not reached a significant level that could affect his government service.”

However, David Sacks stands out among “special government employees” because of his investments in hundreds of tech companies that may benefit from the policies he can influence. His public ethical disclosure document, based on self-reported information, neither disclosed the value of these remaining cryptocurrency and AI-related holdings nor specified the exact time he claims to have divested assets, making it difficult for outsiders to assess whether his government position has resulted in a net gain.

White House spokesperson Liz Houston stated that David Sacks has addressed the potential conflict of interest. She referred to his insights as a “valuable asset in President Trump's agenda to consolidate American technological hegemony.”

David Sacks, 53, the head of artificial intelligence and cryptocurrency at the White House, photographed in September. His disclosure documents show he holds hundreds of tech investments. Photo credit: Haiyun Jiang/The New York Times

David Sacks's spokesperson Jessica Hoffman stated, “The claim of a conflict of interest is untrue.” She said that David Sacks complied with special government employee regulations, and that the government ethics office determined he needed to sell investments in certain types of AI companies, not all of them. She added that his government role caused him to incur losses rather than gain benefits.

At a dinner held by the White House for tech executives in September, David Sacks expressed his honor to bridge the realms of technology and government. “It is a great honor to have a seat at the table in both of these worlds,” he said.

David's Mansion

Mr. David Sacks, photographed in 2005, later became an early employee of PayPal. Over the years, he has become a prominent figure in Silicon Valley.

David Sacks' journey to the White House began in Silicon Valley.

He arrived in this land of technology as an undergraduate at Stanford University in 1990, where he met classmates including Peter Thiel. David Sacks later joined a startup with Thiel, which became the electronic payment company PayPal, and was also involved during this time was Elon Musk.

After eBay acquired PayPal for $1.5 billion in 2002, this group of people began to invest in each other. David Sacks funded Musk's rocket company SpaceX, as well as Thiel's co-founded data analytics company Palantir. In turn, Thiel supported David Sacks' business communication startup Yammer, which was sold to Microsoft for $1.2 billion in 2012.

David Sacks and Elon Musk in New York in 2006. They worked together at PayPal and are also friends. Image source: Christian Grattan/Patrick McMullan, via Getty Images

In 2017, David Sacks founded Craft Ventures, which has invested in hundreds of startups, including those founded by his friends. Three years later, he co-founded the “All-In” podcast with his friends and investment partners Jason Calacanis, Chamath Palihapitiya, and David Friedberg.

In 2022, David Sacks became an important figure in Republican politics when he donated $1 million to a super PAC supporting former tech investor JD Vance, who was running for Senate and had previously worked for Peter Thiel.

Last year, David Sacks held a $12 million fundraising event for Trump at his mansion in San Francisco. The dinner left a deep impression on the presidential candidate.

“I really like David's house,” Trump said two weeks later on the “All-In” show, “that house is amazing.”

After the election, the Trump team invited David Sacks to join the government. He agreed, on the condition that he could continue working at Craft, which he was able to do.

“This is just what I wanted,” David Sacks said in December regarding his dual role.

Allied with Nvidia

David Sacks opened the doors of the White House to Silicon Valley leaders. One of the most notable visitors was NVIDIA CEO Jensen Huang.

Three people who are familiar with the situation but are not authorized to discuss the interactions between the two parties said that David Sacks and the other person did not know each other before Sacks joined the government, but they developed a close relationship this spring.

Both parties have their own agendas. At 62, Jensen Huang hopes to obtain government approval to sell NVIDIA's highly sought-after AI chips globally, despite concerns that these components may enhance China's economic and military capabilities. Huang believes that restricting the export of NVIDIA chips will force Chinese companies to develop stronger alternatives. Promoting NVIDIA technology will expand the AI industry, thus benefiting the AI investments held by David Sacks and his friends.

According to five people familiar with the discussions at the White House, during a meeting, David Sacks echoed Jensen Huang's view that dominating the global market with American technology is the best way to defeat China. He worked to eliminate the restrictions imposed during the Biden administration on overseas sales by American chip companies like Nvidia and opposed regulations that could hinder foreign companies from procuring American chips for international data centers.

After removing these restrictions, David Sacks flew to the Middle East in May to reach an agreement to supply 500,000 American AI chips (mainly from NVIDIA) to the United Arab Emirates. Insiders said that such a large quantity has raised concerns among some White House officials, who worry that China, as an ally of the UAE, will gain access to this technology.

But this agreement is a major victory for Nvidia. Analysts estimate that its chip sales could reach as high as 200 billion dollars.

President Trump with UAE ruler Sheikh Mohammed bin Zayed Al Nahyan in May in Abu Dhabi. To Trump's left is Secretary of Commerce Howard L. Bernstein, followed by Mr. David Sacks. Photo credit: Doug Mills/The New York Times

Ms. Hoffman stated that David Sacks' thoughts stem from discussions with multiple parties (not just Jensen Huang) and that he “hopes the entire American tech industry wins.” She noted that her holdings have not profited from the UAE trades.

Nvidia spokesperson Milin Mangarindan stated that Commerce Secretary Howard Lethnick is the main contact for the company's AI chip sales overseas.

David Sacks praised the UAE deal on the “All-In” podcast in May: “I define victory as the whole world integrating around American AI companies,” he said.

There is still an obstacle to achieving this goal: lifting the U.S. ban on direct chip sales to China.

Four sources said that at the White House, David Sacks promoted the ban by shifting chip sales to Huawei, a Chinese competitor of Nvidia, thereby bolstering China's strength.

In July, David Sacks and Jensen Huang presented this argument to Trump during a meeting in the Oval Office. Before the meeting ended, Trump approved NVIDIA's sale of chips to China.

David Sacks' investment portfolio

The White House praised David Sacks for minimizing his financial conflicts of interest.

David Sacks has obtained a moral exemption stating that he and Craft Ventures have sold over $200 million in cryptocurrency positions (including Bitcoin investments) and are divesting shares in AI-related companies such as Meta, Amazon, and xAI.

The White House stated that David Sacks has begun or completed the sale of “over 99% of the holdings that may raise concerns about conflicts of interest.”

White House spokeswoman Ms. Houston stated that David Sacks has been recused from participating in any matters that could affect his financial interests until conflicts of interest can be resolved or an exemption is obtained.

However, David Sacks' exemption does not fully reflect his wealth status, nor does it specify when he sold his shares in companies such as Meta and Amazon.

According to an analysis by The New York Times, it is clear that David Sacks directly or through Craft retained 20 cryptocurrency and 449 AI-related investments.

Among these AI-related investments, 11 items were designated as “AI equity” in a waiver, while the remaining 438 were classified as software or hardware manufacturers, even though they promote AI product services on their websites or have “AI” in their names (such as Resemble.AI and CrewAI). For example, the waiver classified Palantir as “software as a service,” while the company's official website claims to offer “AI-driven automated decision-making.” 41 companies have “AI” in their names.

In a waiver, the White House stated that many software companies “currently have core businesses that do not substantially apply AI-related technologies,” but added that “many of them are likely to apply such technologies in the future.”

David Sacks' support for the policies backed by the White House has paved the way for his investment prosperity.

The “AI Action Plan” promotes the development of autonomous drones and other AI inventions for the Pentagon's domestic production. According to its disclosed documents, David Sacks holds shares in defense tech startups such as Anduril, Firestorm Labs, and Swarm Aero, which produce drones and other products. In September, Anduril announced a $159 million contract with the U.S. Army to develop a new type of night vision goggles equipped with AI.

Anduril spokesperson Shannon Pryor stated that the company's collaboration with the Army existed prior to the AI action plan, and the contract was awarded because its founder, Palmer Luckey, is “one of the world’s top virtual reality headset designers.” Ms. Hoffman said that incorporating AI military applications into policy planning is “an obvious line of thinking.”

This spring, David Sacks also supported the “GENIUS Act,” a regulatory framework for stablecoins (cryptocurrencies designed to maintain a constant price of 1 dollar). He promoted this legislation on CNBC and advocated for its passage in Congress.

After the bill was passed in July, David Sacks described it as “historic” and “significant” on “All-In,” with the potential to greatly expand the stablecoin business.

President Trump is with David Sacks, and the President is about to sign the “significant” GENIUS Act, as described by David Sacks. Photo credit: Haiyun Jiang/The New York Times

Craft's cryptocurrency investment BitGo collaborates with stablecoin issuers. BitGo celebrates the passage of the “GENIUS Act” on its official website and immediately seizes the opportunity to claim that its services “perfectly align” with the new guidelines. “The wait is over,” the website states.

In September, BitGo submitted its IPO application. According to financial documents, Craft holds 7.8% of its shares, valued at over $130 million based on BitGo's 2023 valuation.

BitGo declined to comment. Ms. Hoffman stated that the passage of the “GENIUS Act” did not bring any specific benefits to BitGo.

Since David Sacks entered the White House, AI companies have continued to announce new investments from Craft. In July, the startup Vultron, which develops AI software for government contractors, celebrated receiving $22 million in new funding and touted the contribution of “Craft Ventures co-founded by White House AI advisor David Sacks.”

Vultron CEO Liu Mark stated that this financing was finalized before David Sacks joined the government. “The announcement mentioned David because he is a celebrity in the AI industry,” he said.

David Sacks remains on the board of the AI-assisted chat platform startup Glue, which he helped co-found. In October, Glue announced it had secured $20 million in new funding, including investment from Craft.

Ms. Hoffman stated that David Sacks had exited other company boards before joining the Trump administration, but retained his position on the Glue board because “the system allows it.” She mentioned that this financing was completed last year. Glue has not responded to a request for comment.

The Promotion of the “All-In” Podcast

In the March episode of the “All-In” program, host Friedberg stands outside the East Wing of the White House with Palihapitiya.

Parihapitiya said they were just “walking around” the White House, and the program included photos of them crossing the paneled rooms and meeting David Sacks in the porch between the East Wing and the West Wing.

The podcast hosts then interviewed Treasury Secretary Scott Bessen to discuss economic policy. A few days later, they returned to the White House with an almost two-hour interview with Letnik. Two months later, they interviewed the Secretary of Agriculture and the Secretary of the Interior. In September, “All-In” released a video of Trump's private tour of the Oval Office.

David Sacks sits to the right of President Trump, participating in the March White House Digital Assets Summit. Since mid-2024, Trump has appeared three times on the “All-In” podcast. Photo credit: Haiyun Jiang for The New York Times.

David Sacks' government work has increased the podcast's visibility, with monthly downloads reaching 6 million. Based on its ticket price of $7,500 and public attendance, its annual conference in Los Angeles this year is estimated to have ticket sales of about $21 million, up from $15 million last year. In June, the podcast launched a brand of tequila called “All-In” priced at $1,200.

Ms. Hoffman stated that David Sacks has given up AI and cryptocurrency-related income (such as sponsorship fees) but can participate in profit sharing from tequila and event ticket sales. Podcast CEO Jon Hale did not respond to the request for comment.

David Sacks' personal business and policy work intersected at the July Washington AI event, where he designated “All-In” as the organizer.

But two knowledgeable sources said that White House Chief of Staff Wiles is reluctant for the government to be seen as endorsing the “All-In” brand. They said she requested an increase in co-hosts. Ms. Hoffman stated that David Sacks contacted the organizers of the annual meeting of tech and government officials, the “Hill and Valley Forum.”

Visa and the New York Stock Exchange sponsored the AI summit, but the organizers refused to disclose the sponsorship amount. Ms. Hoffman stated that “All-In” incurred losses in hosting the event and that “no VIP reception was held.” The NYSE declined to comment, and Visa did not respond to requests for comment.

David Sacks described his experience at the White House as “incredible” at the beginning of the event, praising the government's work in the fields of AI and cryptocurrency. He then handed over hosting duties to his “All-In” partner, who interviewed NVIDIA's Jensen Huang and White House officials on stage.

In his keynote speech, Trump praised David Sacks as “exceptional,” and then signed an executive order to accelerate the construction of data centers and the export of AI systems.

Then, he handed the presidential signing pen to David Sacks.