Venture capitalist and technologist David Sacks, recently appointed as “Chief of Artificial Intelligence and Cryptocurrency” by President-elect Donald Trump, is seeing his role redefined before the new administration takes office.
Originally announced as the leader of the newly created Presidential Council of Advisors on Science and Technology, Sacks’ position is now shifting to more of an advisory capacity, according to sources close to Trump’s transition team.
While Sacks was initially expected to lead the administration’s technology policy, the bulk of operational leadership will now fall to Michael Kratsios, a Scale AI executive and former US Chief Technology Officer during Trump’s first term. Kratsios will oversee technology policy alongside Gale Slater, who will focus on telecoms and antitrust.
Sources say Sacks’ decision to scale back his role stems from his refusal to leave his investment firm Craft Ventures and his unwillingness to take on a full-time government position that would require Senate confirmation. Instead, Sacks is expected to serve as a Special Government Employee (SGE), a title that would allow him to intermittently advise the government while continuing his private sector duties.
Sacks’s dual role has raised questions about potential conflicts of interest. While SGEs face fewer restrictions than regular government employees, critics argue such arrangements can make policy implementation and accountability more difficult.
“Not leaving office and not taking on a formal government role complicates things a lot,” said one source familiar with the transition process. “Even if conflicts of interest are often overlooked in this administration, there’s a realization that the tech policy role needs someone who is fully operational and hands-on.”
Kratsios, who was heavily involved in the transition team, is now expected to take the lead in personnel management and executing day-to-day policy initiatives.
Despite the redefinition of his role, Sacks insists he remains at the center of the administration’s technology strategy. In a post on X (formerly Twitter), Sacks dismissed reports that his role was being scaled back as “nonsense.”
“I plan to spend 50% of my time in Washington making policy and 50% in Silicon Valley keeping up with the latest technology. That seems like an ideal fit for a tech policy role and is exactly what I asked for.”
Despite the changes, Sacks is expected to remain influential within the Trump administration, where his close ties to Silicon Valley and his advocacy of right-wing policies have given him a key role in shaping the administration’s approach to technology, artificial intelligence and cryptocurrencies.
*This is not investment advice.
