Trump picks venture capitalist David Sacks as AI and crypto czar

• Venture capitalist David Sacks will advise Trump's government on AI and crypto.

• Sacks is a strong believer in AI and considered bullish on crypto.

• The former Paypal COO has invested in at least 20 unicorn firms.

U.S. president-elect Donald Trump has picked venture capitalist David Sacks to be his artifical intelligence and cryptocurrency czar.

Sacks, 52, is tasked with making America "the clear global leader" in both industries, while steering the country away "from Big Tech bias and censorship."

Announcing the appointment on his Truth Social platform, Trump said the South African-born investor will work on a legal framework to help cryptocurrency "thrive in the U.S."

He will also lead the Presidential Council of Advisors for Science and Technology.

Who is David Sacks?

An influential figure in the startup for more than two decades, Sacks became chief operating officer for Paypal just a year after it was founded.

He's the second former Paypal executive to be granted a government role, after Trump picked Elon Musk as co-leader of the upcoming Department for Government Efficiency. Musk co-founded Paypal with back in 1998.

In 2008, Sacks founded fast-growing business social networking service Yammer. Microsoft acquired the SaaS in 2012 for for $1.2 billion.

Sacks founded venture capital firm Craft Ventures in 2017 with tech entrepreneur Bill Lee, and has invested in at least 20 unicorn firms, including Airbnb, SpaceX and Twitter.

He's also a podcaster, having launched All In with co-hosts Chamath Palihapitiya, Jason Calacanis and David Friedberg during the pandemic.

What will he do?

Cryptocurrency

Sacks' role is a new one, so there's no specific precedent in place for its responsibilities or limits.

Trump has already promised to set up an advisory council on cryptocurrency that's expected to help guide policy and establish a U.S. bitcoin reserve.

Given Sacks will set up a legal framework for the crypto, it's likely he'll have an influential major role in these progams. Trump is very crypto-friendly, so Americans can expect light-touch regulations.

Matthew Dibb from cryptocurrency asset manager Astronaut Capital told Reuters Trump's appointment was bullish.

He said: "David has had somewhat of a hands-on approach to crypto over the years, at times holding coins such as Solana."

Solana is a blockchain platform with a native cryptocurrency called SOL. It's been on a wild ride since its launch in 2020, including outages, lawsuits, a hack and huge fluctuations in market cap.

"[Sacks] appears to be a lot more technically and commercially competent regarding crypto than most would think," Dibb added.

Artificial intelligence

The upcoming administration is likely to ease AI regulation to try and drive growth.

Trump has already promised to remove Joe Biden's 2023 ethical AI executive order, which aimed to make sure the technology did not "exacerbate societal harms such as fraud, discrimination, bias and disinformation."

Trump's election manifesto said:

“We will repeal Joe Biden’s dangerous Executive Order that hinders AI innovation, and imposes radical leftwing ideas on the development of this technology.

“In its place, Republicans support AI development rooted in free speech and human flourishing.”

It's not yet clear exactly what role Sacks will play in this mission, but the entrepreneur is a huge believe in the promise of AI.

He told an interview last year:"it might be bigger than the internet itself. It's that important."

Major industry figures like OpenAI CEO Sam Altman have congratulated Sacks on his appointment. He will take up the position following Trump's inauguration January 20.