Reid Hoffman Praises Anthropic as a Force for Good

A schism within the famed “PayPal Mafia” is playing out publicly, this time centering on the increasingly critical landscape of artificial intelligence.

Reid Hoffman, the billionaire tech investor and LinkedIn co-founder, has publicly defended AI startup Anthropic as “one of the good guys,” a statement spurred by recent criticism from David Sacks, a venture capitalist and appointee as President Trump’s advisor on AI and cryptocurrency.

“Anthropic, along with some others (incl Microsoft, Google, and OpenAI) are trying to deploy AI the right way, thoughtfully, safely, and enormously beneficial for society,” Hoffman wrote on X. “That’s why I am intensely rooting for their success.”

Hoffman’s support carries considerable weight. He has been a member of Microsoft’s board since 2017. Microsoft is also a major investor in and partner with OpenAI. Hoffman was an early investor in OpenAI and remains a shareholder. Adding another layer, he revealed revealed that his firm, Greylock, holds a stake in Anthropic.

The public disagreement underscores the growing tensions within the tech community regarding the development and deployment of AI, particularly concerning safety, regulation, and potential societal impact.

Both Hoffman and Sacks are alumni of PayPal, joining the company in its early days in 1999 and holding significant positions. They, along with figures like Peter Thiel, Elon Musk, and Max Levchin, formed the core of the “PayPal Mafia,” a group recognized for their subsequent successes in building influential tech companies and shaping the internet landscape.

However, in recent years, Hoffman and Sacks have emerged as ideological opposites, primarily due to their divergent political views. Hoffman is known as a significant donor to the Democratic party.

Sacks became a vocal supporter of Donald Trump before joining the administration.

The field of AI has become a battleground for political ideologies, with sharp disagreements arising over issues of developmental safety, the appropriate level of government oversight, and the potential long-term ramifications for society. This politicization of AI is evident in the contrasting viewpoints and public sparring between figures like Hoffman and Sacks.

Anthropic, founded in 2021 by former OpenAI executives and researchers who harbored concerns about the latter’s approach to AI safety, has been at the center of this debate. Last week, Jack Clark, Anthropic’s co-founder and head of policy, published an essay titled “Technological Optimism and Appropriate Fear,” which further fueled the discourse surrounding AI regulation, underscoring the critical balance between innovation and responsible development.

Sacks criticized Clark’s essay and accused Anthropic of leveraging “fear-mongering” to push for regulatory capture. He further claimed that the company is largely responsible for the surge of state-level regulations that are stifling the startup ecosystem.

Anthropic has actively opposed attempts to preempt state-level AI regulation, including a Trump-backed proposal that sought to impose a 10-year moratorium on such rules. This stance further solidified Anthropic’s position as a proponent of localized and potentially stricter oversight of AI development and deployment.

The back-and-forth continued on X, with Elon Musk also weighing in.

“The leading funder of lawfare and dirty tricks against President Trump wants you to know that ‘Anthropic is one of the good guys,'” Sacks wrote in response to Hoffman. “Thanks for clarifying that. All we needed to know.”

“Indeed,” Musk replied, indicating his alignment with Sacks’ perspective.

Hoffman countered, “Shows you didn’t read the post (not shocked). When you are ready to have a professional conversation about AI’s impact on America, I’m here to chat.”

Jason Calacanis extended an invitation to Hoffman to appear on the All-In podcast, which he co-hosts with Sacks and others. Hoffman had previously appeared on the podcast.

Hoffman indicated his willingness to return, stating that he is “open to coming back on” but that “this week is packed.”

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