After David Sacks, the White House AI and Crypto Czar, dismissed the NYT investigation that alleged potential conflicts of interest as a “nothing burger” and a product of the outlet’s “hoax factory,” it sparked a wave of support from Silicon Valley heavyweights who view his service as an act of patriotic sacrifice rather than personal gain.
Silicon Valley ‘Wagons’ Circle
Prominent venture capitalists quickly rallied to Sacks’s defense, reframing his dual role as a public service. Marc Andreessen, general partner at Andreessen Horowitz, praised Sacks as a “throwback to the era of American greatness,” emphasizing that Sacks is volunteering for “a dollar a day” during a critical moment for the nation.
Bill Ackman, CEO of Pershing Square, endorsed Andreessen's sentiment with a single word: “Agreed”.
The defense extended beyond investors to major industry operators. Greg Brockman, President and Co-Founder of OpenAI, expressed gratitude for Sacks's role, citing his “deep integrity and resilience.”
Brockman argued that maintaining U.S. leadership in innovation requires Americans with actual technical expertise, like Sacks, to step up.
Attacking The Math
Other industry leaders targeted the competency of the reporting. Max Levchin, CEO of Affirm and a fellow “PayPal Mafia” member, criticized the report as “poor taste,” arguing there was no need to invent a conspiracy around a leader advising “for free”.
Meanwhile, Gavin Baker of Atreides Management dismantled the report’s financial logic. He pointed to the claim that selling 500,000 GPUs to the UAE would generate $200 billion for Nvidia Corp. (NASDAQ:NVDA), suggesting the authors needed “remedial math education.”
Baker argued that while Sacks has conflicts, they are inevitable for anyone qualified to regulate AI, and are being managed appropriately.
Sacks: Report Is ‘Willfully Mischaracterized’
The controversy centers on allegations that Sacks's 708 tech investments—including massive stakes in AI and crypto—stand to skyrocket in value due to the very regulations he is drafting.
Sacks hit back immediately, arguing the newspaper “strung together a bunch of anecdotes” to support a pre-determined narrative after failing to find actual evidence of wrongdoing.
He specifically highlighted a retracted claim regarding a “fabricated dinner” with Nvidia CEO Jensen Huang as proof of the report’s bad faith. “Anyone who reads the story carefully can see that they strung together a bunch of anecdotes that don’t support the headline,” Sacks stated.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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