The New York Times Reveals White House AI and Crypto Czar David Sacks' Insider Trading

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

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

Original Translation: 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 conflicts of interest during David Sacks's tenure as the White House AI and Cryptocurrency Affairs Director. Following this, David Sacks tweeted that due to The New York Times' apparent lack of intent to write a fair report, they have engaged the services of Clare Locke LLP, specializing in defamation lawsuits, to handle the matter. The following is the full translation of the article:

In July of this year, David Sacks, a senior technology official in the Trump administration, stepped onstage with a smile in a neoclassical hall just blocks away from the White House. He convened top government officials and Silicon Valley executives to participate in a forum on the booming AI industry.

The forum's guest of honor was President Trump, who announced a "AI Action Plan" partially drafted by seasoned venture capitalist David Sacks. In a nearly hour-long speech, Trump proclaimed AI as "one of the most important technological revolutions in world history." He then signed executive orders aimed at accelerating the industry's growth.

Among the authoritative audience, almost everyone, including the CEOs of chipmakers NVIDIA and AMD, as well as David Sacks's tech industry friends, colleagues, and business partners, benefited from Trump's decree.

One of the winners was David Sacks himself.

At 53, David Sacks, since January, has held a highly advantageous "part-time" role within the federal government: influencing Silicon Valley policy in Washington while still working as an investor in Silicon Valley. As the White House AI and Cryptocurrency lead, some of his actions include:

· Provided an amazing White House backchannel to his tech industry peers and worked to clear government barriers for AI companies, potentially bringing up to $200 billion in new sales to giants like Nvidia.

· His proposed AI policy suggestions have sometimes clashed with national security advice, raising alarms among some White House colleagues and prompting questions about his priorities.

· Created conditions for personal gain. According to a New York Times analysis of his financial disclosure documents, he holds 708 tech investments, with at least 449 related to AI, investments that could directly or indirectly benefit from policies he helps shape.

The New York Times found that while many companies self-identify as AI firms, provide AI services, or have "AI" in their names, in their public filings, 438 of the tech investments were classified under software or hardware companies.

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

To illustrate the ethical complexities and multiple conflicted interests facing David Sacks, look no further than the July AI summit. David Sacks originally planned to host the forum through his "All-In" podcast along with other tech investors. According to a scheme obtained by The New York Times, "All-In" proposed to potential sponsors that each pay $1 million to participate in private receptions and other events during the summit aimed at "bringing Donald Trump and top AI innovators together."

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

According to two sources, this plan raised concerns among some officials, leading White House Chief of Staff Susie Wiles to intervene and prevent "All-In" from being the sole host of the forum.

Former Trump adviser and Silicon Valley billionaire critic Steve Bannon said David Sacks is a typical representative of ethical conflicts in this administration, claiming, "The tech bros are out of control."

「Through this rising oligarchy, they are leading the White House down the path to ruin,」 he said.

David Sacks is able to serve in government as a private-sector practitioner because of his status as a "Special Government Employee," a title typically given by the White House to experts who provide short-term consulting to the government in unpaid positions.

In March of this year, David Sacks received two White House ethics waivers, stating that he is divesting or has divested from the majority of his cryptocurrency and artificial intelligence assets. The waivers state that his remaining investments "have not reached a level that could impact his government service in a significant way."

However, what sets David Sacks apart as a "Special Government Employee" is his extensive investments in hundreds of tech companies, which could benefit from policies he might influence. His publicly disclosed ethics filing, based on self-reported information, did not disclose the value of these remaining cryptocurrency and AI-related holdings nor did it specify the timeline of his claimed asset divestiture, making it difficult for outsiders to assess whether his government service has brought a net gain.

White House spokesperson Liz Houston stated that David Sacks has addressed potential conflicts of interest. She described his insight as a "valuable asset to President Trump's agenda of consolidating American tech dominance."

David Sacks, the White House AI and cryptocurrency coordinator, 53, photographed in September. His disclosure forms show holdings in hundreds of tech companies. Photo Credit: Haiyun Jiang/The New York Times

David Sacks' spokesperson Jessica Hoffman stated, "The assertion of a conflict of interest is untrue." She said David Sacks complies with the regulations for Special Government Employees and that the government ethics office determined he needed to divest from certain types of AI company investments, not all. She added that his government role has resulted in losses rather than gains.

At a September White House dinner for tech executives, David Sacks expressed his honor to straddle the worlds of tech and government. "It is a great honor to have a place in both of these 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's journey to the White House began in Silicon Valley.

He arrived in this tech hub as a Stanford undergraduate in 1990, where he met classmates including Peter Thiel. David Sacks later joined a startup, which would become the online payment company PayPal, along with Thiel and also alongside Elon Musk.

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

David Sacks with Elon Musk in 2006 in New York. They had previously 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 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 a key player in Republican politics when he donated $1 million to a super PAC supporting former tech investor JD Vance, who had worked for Thiel, in his Senate bid.

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

"I really liked David's house," Trump said on the "All-In" show two weeks later. "That house was incredible."

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

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

Partnering 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 individuals familiar with the matter but not authorized to discuss the interactions between the two parties said that prior to David Sacks joining the government, the two did not know each other but developed a close relationship this spring.

Both had their own agendas. 62-year-old Jensen Huang was seeking government approval to sell NVIDIA's sought-after artificial intelligence chips worldwide, despite concerns that these components could enhance China's economic and military capabilities. Huang believed that restricting NVIDIA's chip exports would compel Chinese companies to develop stronger alternatives. On the other hand, promoting NVIDIA's technology would expand the AI industry, benefiting David Sacks and his friends' AI investments.

According to five individuals familiar with White House discussions, at a White House meeting, David Sacks echoed Jensen Huang's view that leveraging American technology to dominate globally was the best way to beat China. He worked to lift Biden-era restrictions on overseas sales by American chip companies such as NVIDIA and opposed regulations that could hinder foreign companies from purchasing American chips for international data centers.

After shedding these restrictions, David Sacks flew to the Middle East in May and secured a deal to deliver 500,000 American AI chips (mostly from NVIDIA) to the United Arab Emirates. Sources said that such a large quantity raised concerns among some White House officials, who feared that China, as a UAE ally, would gain access to this technology.

However, this deal was a major win for NVIDIA. Analysts estimate that its chip sales could reach as high as $200 billion.

Former President Trump with UAE ruler Sheikh Mohammed bin Zayed al-Nahyan in Abu Dhabi in May. To Trump's immediate left is Commerce Secretary Howard Leetnick, and behind him is Mr. David Sacks. Photo credit: Doug Mills/The New York Times

Ms. Hoffman said that David Sacks' thinking was informed by discussions with multiple parties (not just Jensen Huang), and that he "wants the entire U.S. tech industry to win." She stated that none of his holdings had benefited from the UAE deal.

NVIDIA spokesperson Milind Mandalindan stated that Commerce Secretary Howard Leetnick is the company's primary contact for overseas sales of AI chips.

David Sacks praised the UAE deal in the May "All-In" podcast, stating, "I define victory as the entire world coalescing around an American AI company."

One obstacle to achieving this goal is lifting the US ban on direct chip sales to China.

Four sources familiar with the matter said that at the White House, David Sacks argued for lifting the ban by redirecting chip sales from a Chinese competitor, Huawei, to Nvidia, thus bolstering China's power.

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

David Sacks's Investment Portfolio

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

A waiver obtained by David Sacks stated that he and Craft Ventures had sold over $200 million in cryptocurrency positions (including Bitcoin investments) and were divesting shares in AI-related companies like Meta, Amazon, and xAI.

The White House said David Sacks has begun or completed the sale of "over 99% of holdings that presented potential conflict-of-interest concerns."

White House spokeswoman Ms. Houston stated that before being able to divest from conflicting interests or obtain a waiver, David Sacks had recused himself from any matters that could affect his financial interests.

However, David Sacks's waiver does not fully reflect his wealth status, nor does it specify the timing of his divestment from holdings in companies like Meta and Amazon.

According to a New York Times analysis, it is clear that David Sacks holds 20 cryptocurrency and 449 AI-related investments, either directly or through Craft.

Out of these AI-related investments, 11 are designated as "AI equity" in a waiver, while the remaining 438 are categorized as software or hardware manufacturers, despite their promotion of AI products or services on their websites or having "AI" in their names (e.g., Resemble.AI and CrewAI). For example, the waiver labels Palantir as "software as a service," while the company's 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 "do not currently have AI-related technology as a significant part of their core business," but added that "many are likely to in the future."

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

The "AI Action Plan" is driving AI inventions such as domestically produced drones for the Pentagon. According to disclosed documents, David Sacks holds stakes in defense technology startups such as Anduril, Firestorm Labs, Swarm Aero, which produce drones and other products. In September, Anduril announced a $159 million contract with the U.S. Army to develop AI-equipped next-generation night vision goggles.

Anduril spokesperson Shannon Pryor stated that the company's collaboration with the Army predated the AI Action Plan and that the contract was awarded because its founder, Palmer Luckey, was a "world-leading virtual reality headset designer." Ms. Hoffmann stated that incorporating AI for military purposes into policy planning was a "logical step."

This spring, David Sacks also supported the "GENIUS Act," a stablecoin regulation bill (aimed at maintaining the stable price of a cryptocurrency pegged to the U.S. dollar). He promoted this legislation on CNBC and pushed for its passage in Congress.

After the bill's passage in July, David Sacks deemed it "historic" and "significant" on "All-In," anticipating a substantial expansion of the stablecoin business.

President Trump with David Sacks, as the President is about to sign the "significant" "GENIUS Act" praised by David Sacks. Image Source: Haiyun Jiang/The New York Times

Craft's cryptocurrency investment BitGo partnered with a stablecoin issuer. BitGo celebrated the passage of the "GENIUS Act" on its website and immediately took the opportunity to claim that its services align "perfectly" 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 million based on BitGo's 2023 valuation.

BitGo declined to comment. Ms. Hoffmann 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, Vultron, a startup developing 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 Mark Liu said the funding had been secured before David Sacks joined the government. "The announcement cites David because he is a celebrity in the AI industry," he said.

David Sacks remains on the board of Glue, the AI-powered chat platform startup he helped create. In October, Glue announced a $20 million new funding round, including investment from Craft.

Ms. Hoffman said that David Sacks had stepped down from other company boards before joining the Trump administration but retained his board seat at Glue because "the system allows for it." She stated that this funding had been completed last year. Glue did not respond to a request for comment.

Advancing the "All-In" Podcast

In the March episode of "All-In," host Fredberg and Parikhapitiya stood outside the White House East Wing.

Parikhapitiya said they had just been "wandering around" the White House, and the episode included photos of them walking through the paneled room and meeting David Sacks in the corridor between the East Wing and the West Wing.

The podcast hosts then interviewed Treasury Secretary Scott Besent to discuss economic policies. Several days later, they returned to the White House, bringing with them an interview with Lettenik for nearly two hours. Two months later, they interviewed the Secretaries of Agriculture and Interior. In September, "All-In" released a video tour of Trump's private 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 on the "All-In" podcast three times. Photo Credit: Haiyun Jiang for The New York Times

David Sacks's government work has raised the podcast's profile, with monthly downloads reaching 6 million. Based on ticket prices of $7,500 and public attendance estimates, ticket sales for this year's annual conference in Los Angeles are estimated to be around $21 million, up from last year's $15 million. In June, the podcast launched a $1,200 "All-In" branded tequila.

Ms. Hoffman said David Sacks has forgone AI and cryptocurrency-related revenue (such as sponsorships) but can participate in tequila and event ticket sales revenue sharing. Podcast CEO Jon Hale 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.

However, two sources familiar with the matter said White House Chief of Staff Wales did not want the government to be seen as endorsing the "All-In" brand. They said she requested adding a co-host. Ms. Hoffman said David Sacks reached out to the organizers of the annual tech and government officials summit "Hill and Valley Forum."

Visa and the New York Stock Exchange sponsored this AI summit, and the organizers declined to disclose the sponsorship amount. Ms. Hoffman said that "All-In" incurred a loss from hosting this event and did not hold a VIP reception. NYSE declined to comment, and Visa did not respond to a request for comment.

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

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

He then handed the presidential signing pen to David Sacks.