The New York Times: Exposing White House AI and Crypto Affairs Chief David Sacks' Money-Making Scandal

Original Title: Silicon Valley's Man in the White House Is Benefiting Himself and His Friends

Original Authors: Cecilia Kang, Tripp Mickle, Ryan Mac, David Yaffe-Bellany, Theodore Schleifer, The New York Times

Translated 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), pointing out that David Sacks, during his tenure as the White House Director of Artificial Intelligence and Cryptocurrency Affairs, had conflicts of interest. Subsequently, David Sacks tweeted that, given The New York Times' apparent unwillingness to write a fair report, he had hired the law firm Clare Locke, which specializes in defamation lawsuits, to handle the matter. The following is the full translated report:

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

The main guest at the forum was President Trump, who announced an "AI Action Plan" partially drafted by veteran venture capitalist David Sacks. In a nearly hour-long speech, Trump declared artificial intelligence "one of the most important technological revolutions in world history." He then signed an executive order aimed at accelerating the industry's development.

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

One of the winners was David Sacks himself.

Now 53, David Sacks has held a highly advantageous "part-time" role in the federal government since January: influencing Silicon Valley policy in Washington while still working as an investor in Silicon Valley. As the White House head of artificial intelligence and cryptocurrency, his actions included:

· Providing his tech peers with astonishing access to the White House and working to remove government obstacles for AI companies. This move brought an estimated $200 billions in new sales to giants like Nvidia.

· His AI policy recommendations sometimes conflicted with national security advice, alerting some White House colleagues and raising questions about his priorities.

· Creating opportunities for personal gain. According to The New York Times' analysis of his financial disclosure documents, he holds 708 tech investments, at least 449 of which are related to artificial intelligence. These investments could directly or indirectly benefit from policies he helped formulate.

The New York Times found that although many companies market themselves as AI firms, offer AI services, or have "AI" in their names, 438 of his tech investments are classified as software or hardware companies in public filings.

David Sacks also used his government position to boost the profile of his weekly podcast "All-In" and expand related business ventures.

To illustrate the ethical complexity and intertwining of multiple interests faced by David Sacks, the July AI summit is a prime example. David Sacks initially planned for the forum to be hosted by the "All-In" podcast, which he co-hosts with other tech investors. According to a proposal obtained by The New York Times, "All-In" pitched to potential sponsors that each could pay $1 million to participate in private receptions and other events during the summit, designed to "bring together President Donald Trump and top AI innovators."

President Trump speaks at an AI summit in Washington in July, co-hosted by the tech podcast "All-In" and the tech conference "Hill & Valley Forum." Image source: Kenny Holston/The New York Times

According to two people familiar with the matter, the plan raised concerns among some officials, prompting White House Chief of Staff Susie Wiles to intervene and prevent "All-In" from being the sole host of the forum.

Steve Bannon, former Trump adviser and critic of Silicon Valley billionaires, said David Sacks is a typical example of ethical conflict in the current administration. 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 is able to serve in government as a private sector worker because he is classified as a "special government employee," a title the White House typically gives to experts who provide short-term consulting to the government. He receives no salary for his government role.

In March this year, David Sacks received two ethics waivers from the White House, stating that he was in the process of or had already sold most of his cryptocurrency and AI assets. The waivers stated that his remaining investments "have not reached a level that could materially affect his government service."

However, what makes David Sacks stand out among "special government employees" is his investments in hundreds of tech companies that could benefit from policies he can influence. His publicly available ethics disclosure, based on self-reported information, neither discloses the value of his remaining cryptocurrency and AI-related holdings nor specifies when he claims to have divested assets, making it difficult for outsiders to judge whether his government role has resulted in net gains.

White House spokesperson Liz Houston said David Sacks has addressed potential conflicts of interest. She called his insights "a valuable asset to President Trump's agenda to consolidate America's technological dominance."

David Sacks, the White House head of AI and cryptocurrency, age 53, photographed in September. His disclosure documents show he holds hundreds of tech investments. Image source: Haiyun Jiang/The New York Times

David Sacks' spokesperson Jessica Hoffman said, "The claims of conflicts of interest are untrue." She said 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 losses, not gains.

At a White House dinner for tech executives in September, David Sacks said he was honored to straddle both the tech and government worlds. "It's a great honor to have a seat in both worlds," he said.

"David's Mansion"

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

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

He arrived in this tech hub in 1990 as an undergraduate at Stanford University, where he met classmates including Peter Thiel. David Sacks later joined Thiel at a startup that became the electronic payments company PayPal, alongside Elon Musk.

After eBay acquired PayPal for $1.5 billions in 2002, the group began investing in each other. David Sacks funded Musk's rocket company SpaceX and Thiel's data analytics firm Palantir. In turn, Thiel supported David Sacks' business communications startup Yammer, which was sold to Microsoft for $1.2 billions in 2012.

David Sacks with Elon Musk in New York in 2006. They worked together at PayPal and are 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 companies founded by his friends. Three years later, he co-founded the "All-In" podcast with 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 and Thiel protégé JD Vance's Senate campaign.

Last year, David Sacks hosted a $12 millions fundraiser for Trump at his San Francisco mansion. The dinner left a deep impression on the presidential candidate.

"I really liked David's house," Trump said on the "All-In" show two weeks later. "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 allowed to do.

"This suits me perfectly," David Sacks said in December about his dual roles.

Alliance 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.

According to three people familiar with the matter but not authorized to discuss the interactions, the two did not know each other before David Sacks joined the government, but formed a close relationship this spring.

Both sides had their own goals: the 62-year-old Jensen Huang wanted government permission to sell Nvidia's highly sought-after AI chips globally, despite security concerns that these components could enhance China's economy and military. Huang argued that restricting Nvidia chip exports would force Chinese companies to develop stronger alternatives. Promoting Nvidia technology would expand the AI industry, benefiting AI investments held by David Sacks and his friends.

According to five people familiar with White House discussions, David Sacks echoed Huang's view in White House meetings that dominating the world with American technology is the best way to beat China. He worked to lift Biden-era restrictions on overseas sales by Nvidia and other U.S. chip companies, and opposed rules that could hinder foreign companies from buying U.S. chips for international data centers.

After removing these restrictions, David Sacks flew to the Middle East in May and reached an agreement to deliver 500,000 U.S. AI chips (mainly from Nvidia) to the United Arab Emirates (UTC+8). Sources said the sheer volume alarmed some White House officials, who feared that China, as an ally of the UAE, would gain access to the technology.

But the deal was a huge win for Nvidia. Analysts estimate its chip sales could reach $200 billions.

President Trump with UAE ruler Sheikh Mohammed bin Zayed Al Nahyan in Abu Dhabi in May. Commerce Secretary Howard Lutnick is immediately to Trump's left, with David Sacks behind him. Image source: Doug Mills/The New York Times

Ms. Hoffman said David Sacks' thinking was informed by conversations with many parties (not just Jensen Huang), and that he "wants the entire U.S. tech industry to win." She said his holdings did not profit from the UAE deal.

Nvidia spokesperson Mirin Mangalingdan said Commerce Secretary Howard Lutnick was the main contact for the company's overseas AI chip sales.

On the "All-In" podcast in May, David Sacks praised the UAE deal: "I define victory as the whole world integrating around U.S. AI companies," he said.

There was still one obstacle to this goal: lifting the U.S. ban on direct chip sales to China.

According to four sources, David Sacks argued in the White House that the ban was actually strengthening China by shifting chip sales to Nvidia's Chinese competitor Huawei.

In July, David Sacks and Jensen Huang presented this argument to Trump in an Oval Office meeting. Before the meeting ended, Trump approved Nvidia's chip sales to China.

David Sacks' Investment Portfolio

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

The ethics waivers David Sacks received stated that he and Craft Ventures had sold over $200 millions in cryptocurrency positions (including bitcoin investments) and were divesting from AI-related companies such as Meta, Amazon, and xAI.

The White House said David Sacks had begun or completed the sale of "over 99% of holdings that could raise conflict of interest concerns."

White House spokesperson Ms. Houston said that before divesting conflicting interests or obtaining waivers, David Sacks was recused from any matters that could affect his financial interests.

But David Sacks' waivers did not fully reflect his wealth, nor did they specify when he sold his shares in Meta, Amazon, and other companies.

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

Among these AI-related investments, 11 were designated as "AI equities" in one waiver, while the remaining 438 were classified as software or hardware manufacturers, even though they promote AI products or 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," even though the company claims on its website to offer "AI-powered automated decision-making." Forty-one companies have "AI" in their names.

In one waiver, the White House said many software companies "do not currently have a core business that substantially uses AI-related technology," but added that "many are likely to do so in the future."

The policies David Sacks supported in the White House paved the way for the prosperity of his investments.

The "AI Action Plan" promoted the domestic production of autonomous drones and other AI inventions for the Pentagon. According to his disclosure 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 new AI-equipped night vision goggles.

Anduril spokesperson Shannon Pryor said the company's relationship with the Army predated the AI Action Plan and that the contract was awarded because its founder Palmer Luckey is "the world's top virtual reality headset designer." Ms. Hoffman said including military uses of AI in policy plans was "an obvious idea."

This spring, David Sacks also supported the "GENIUS Act," a bill to regulate stablecoins (cryptocurrencies designed to maintain a constant price of $1). He promoted the legislation on CNBC and pushed for its passage in Congress.

After the bill passed in July, David Sacks called it "historic" and "significant" on "All-In," saying it could greatly expand the stablecoin business.

President Trump with David Sacks as the president prepares to sign the "significant" GENIUS Act, as described by David Sacks. Image source: Haiyun Jiang/The New York Times

Craft's cryptocurrency investment BitGo works with stablecoin issuers. BitGo celebrated the passage of the GENIUS Act on its website and immediately claimed its services "perfectly align" with the new guidelines. "The wait is over," the website stated.

In September, BitGo filed for an IPO. According to financial documents, Craft holds a 7.8% stake, valued at over $130 millions based on BitGo's 2023 valuation.

BitGo declined to comment. Ms. Hoffman said the passage of the GENIUS Act "did not bring specific benefits to BitGo."

Since David Sacks entered the White House, AI companies have continued to announce new investments from Craft. In July, Vultron, a startup developing AI software for government contractors, celebrated a new $22 millions funding round (UTC+8), highlighting the contribution of "Craft Ventures, co-founded by White House AI advisor David Sacks."

Vultron CEO Mark Liu said the funding was finalized before David Sacks joined the government. "The announcement mentioned David because he's a celebrity in the AI world," he said.

David Sacks remains on the board of Glue, an AI-assisted chat platform startup he helped found. In October, Glue announced a new $20 millions funding round (UTC+8), including investment from Craft.

Ms. Hoffman said David Sacks left other company boards before joining the Trump administration but retained his Glue board seat because "the rules allow it." She said the funding was completed last year. Glue did not respond to a request for comment.

The "All-In" Podcast's Expansion

In a March episode of "All-In," hosts Friedberg and Palihapitiya stood outside the White House East Wing.

Palihapitiya said they had just been "walking around" the White House, and the show inserted photos of them passing through paneled rooms and meeting David Sacks in the corridor between the East and West Wings.

The podcast hosts then interviewed Treasury Secretary Scott Besant about economic policy. A few days later, they returned to the White House for a nearly two-hour interview with Lutnick. 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 President Trump's right at the White House Digital Assets Summit in March. Since mid-2024, Trump has appeared on the "All-In" podcast three times. Image source: Haiyun Jiang for The New York Times

David Sacks' government work has boosted the podcast's profile, with monthly downloads reaching 6 million. Based on its $7,500 ticket price and publicly available attendance figures, its annual conference in Los Angeles sold about $21 millions in tickets this year (UTC+8), up from $15 millions last year. In June, the podcast launched an "All-In" branded tequila priced at $1,200.

Ms. Hoffman said David Sacks gave up AI- and cryptocurrency-related income (such as sponsorship fees) but could participate in revenue sharing from tequila and event ticket sales. Podcast CEO Jon Heil did not respond to a request for comment.

David Sacks' personal business and policy work converged at the July Washington AI event, where he designated "All-In" as the host.

But two sources said Chief of Staff Wiles did not want the government to be seen as endorsing the "All-In" brand. They said she requested additional co-hosts. Ms. Hoffman said David Sacks approached the organizers of the annual "Hill and Valley Forum" tech and government conference.

Visa and the New York Stock Exchange sponsored the AI summit, but organizers declined to disclose sponsorship amounts. Ms. Hoffman said "All-In" lost money on the event and "did not hold a VIP reception." The NYSE declined to comment, and Visa did not respond to a request for comment.

At the opening of the event, David Sacks described his White House experience as "incredible" and praised the government's work in AI and cryptocurrency. He then handed over hosting duties to his "All-In" partners, who interviewed Nvidia's Jensen Huang and White House officials on stage.

In his keynote speech, Trump praised David Sacks as "very outstanding" and then signed an executive order to accelerate data center construction and AI system exports.

He then handed the presidential signing pen to David Sacks.

 

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