David Sacks

A public disagreement has emerged within the “PayPal Mafia,” specifically between Reid Hoffman and David Sacks, over AI development and regulation. Hoffman defends Anthropic as prioritizing responsible AI deployment, while Sacks accuses them of “fear-mongering” to push for regulatory capture. This dispute highlights the growing political fault lines within the tech community concerning AI safety and government oversight. The tensions are exacerbated by their contrasting political views and involvement with different AI companies.

AI startup Anthropic faces increased scrutiny from the U.S. government amidst competition with OpenAI. David Sacks, Trump’s AI czar, accuses Anthropic of promoting a regulatory framework aligned with “the Left’s vision,” criticizing their safety-focused approach as “fear-mongering.” This contrasts with OpenAI’s close ties to the White House. Anthropic, founded by former OpenAI employees prioritizing AI safety, advocates for stricter regulation, differing from OpenAI’s lighter touch preference. Despite tensions, Anthropic holds government contracts and maintains its commitment to safety.

Democratic lawmakers are scrutinizing David Sacks’ role as a special advisor to President Trump on crypto and AI, questioning his compliance with Special Government Employee (SGE) regulations, particularly the 130-day time limit. Senators Warren and Stansbury demand transparency regarding Sacks’s time in office, alleging potential conflicts of interest as the administration implements new crypto legislation. Critics worry Sacks’s private sector activities could unduly influence policy decisions, despite his disclosure of selling over $200 million in digital assets before assuming his role. The inquiry reflects broader concerns about ethical standards and potential regulatory capture.