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A Strategic Move in the Heart of AI and Crypto Policy
David Sacks, a high-profile venture capitalist and current advisor to President Donald Trump on crypto and AI policy, is quietly reshaping his investment portfolio. A recently leaked White House memo reveals that Sacks and his firm, Craft Ventures, are divesting from major AI companies and hyperscalers like Meta and Elon Musk’s xAI. The move follows an earlier divestiture of \$200 million in crypto assets, suggesting a broader effort to remove any potential conflicts of interest while he serves in a government advisory capacity. This calculated shift is part of a larger realignment of influence within the tech sector, especially under an administration aiming to rebrand its stance on digital assets and artificial intelligence.
Power, Policy, and Portfolio: The Moves Behind the Memo
David Sacks has become a central figure in shaping U.S. policy around artificial intelligence and digital currencies. The White House memo, which surfaced online briefly before being taken down and then re-posted, outlines significant divestitures from public and private tech giants. The document refers to March 31 as a future deadline, suggesting it was authored several months ago. According to the memo, Sacks was required to offload his holdings in major companies including Amazon, Taiwan Semiconductor, and Meta by the end of Q1 2025. Craft Ventures, his firm, also sold stakes in ten AI companies, including Elon Musk’s xAI, a divestiture that was labeled “pending” but is now reportedly finalized.
Notably, Craft Ventures is maintaining investments in various SaaS and hardware startups, many of which are leveraging AI technologies. This selective divestiture raises important questions about how the administration defines conflict of interest and where it draws the ethical line.
Adding to the intrigue, this memo follows another that addressed Sacks’ crypto-related holdings. Both documents function as waivers, effectively allowing him to continue as a special government employee despite his vast investment portfolio. The White House has yet to comment on the leak or its implications.
In parallel developments, Meta is reportedly closing a deal to purchase a 49% stake in Scale AI for \$15 billion in cash. The acquisition is expected to supercharge Meta’s AI initiatives but also creates strategic dilemmas for Scale AI, which has previously partnered with several of Meta’s competitors, including OpenAI and Google. These developments underscore the increasingly complex web of interests surrounding the U.S. government’s involvement in emerging technologies.
Meanwhile, Sacks himself offered commentary this week on the Trump administration’s crypto-friendly approach, which he described as a sharp departure from both Biden’s regulatory stance and Trump’s own prior position during his first term. This pivot is making waves in both the venture capital community and regulatory circles, signaling a redefinition of America’s tech policy under new leadership.
What Undercode Say:
Disentangling Influence from Innovation
David Sacks’ decision to divest from major AI and crypto assets isn’t just about avoiding legal red flags — it’s a strategic cleansing of optics in the world of public policy. With AI and crypto poised to define the next industrial wave, the White House’s top advisor on these fronts cannot afford to appear compromised. By selling off stakes in companies like Meta and xAI, Sacks is signaling an awareness of the ethical tightrope he’s walking.
Balancing Act Between Integrity and Interest
Retaining investments in SaaS and hardware startups while exiting larger tech firms shows a nuanced approach: avoid headline-grabbing conflicts while keeping a foothold in the future of tech. It’s a careful threading of the needle, where the portfolio is adjusted just enough to maintain credibility in Washington without sacrificing upside in Silicon Valley.
Government Policy Meets Venture Capital Logic
Craft Ventures’ divestitures may also serve as a blueprint for how advisors in tech policy can continue to operate without triggering conflict-of-interest alarms. The memos function as legal buffers, but their publication also reveals the lengths to which the administration is going to ensure transparency, or at least the appearance of it. It’s a political balancing act that combines legal compliance with strategic image management.
Meta’s AI Ambitions Under Scrutiny
Meta’s \$15 billion move to acquire nearly half of Scale AI signals more than just ambition. It suggests that the race for data labeling supremacy — a cornerstone of AI development — is heating up. This deal could lead to antitrust scrutiny given Scale AI’s wide client base across competing tech giants. For Meta, it’s a power grab that may force regulators to take a closer look at vertical integration in AI.
The New Tech Order Under Trump
Trump’s administration is rapidly repositioning itself as pro-tech, particularly in areas where the prior administration imposed stiff regulations. Sacks is one of the architects of this pivot, using his influence not just to advise, but to reshape how the federal government views innovation and investment.
Ethical Questions Linger
Despite the divestitures, some gray areas remain. Sacks still holds stakes in companies that use AI — a potential future flashpoint depending on how those companies interact with government projects or regulations. Without stricter definitions around what constitutes a conflict, the line between ethical behavior and influence-peddling may blur.
Timing and Transparency Issues
That the memo was briefly removed before being reposted raises eyebrows. Was it leaked prematurely? Or was it intentionally published and then pulled in response to backlash? Either way, the clumsy handling of sensitive information may damage credibility and trust.
Crafting the Optics of Neutrality
Ultimately, the divestitures appear designed to show that Sacks and his firm are playing fair. But in politics and investment alike, perception can be more powerful than fact. Whether these steps will satisfy watchdog groups or the public remains to be seen.
Trump’s Digital Asset Pivot
The Trump administration’s favorable approach to crypto marks a sharp break from Biden-era skepticism. With Sacks as a guiding voice, policies are being shaped to welcome innovation while softly regulating risk. This could attract both capital and controversy in equal measure.
Implications for Other Advisors
Sacks may be setting a precedent. Other special government employees with tech backgrounds might soon face similar scrutiny, and this could change how venture capitalists approach advisory roles within government.
🔍 Fact Checker Results:
✅ David Sacks and Craft Ventures divested from \$200 million in crypto assets
✅ Craft Ventures sold stakes in ten AI companies, including xAI
❌ The White House has not officially commented on the leaked memo
📊 Prediction:
The Trump administration is likely to double down on pro-innovation narratives, using Sacks’ divestiture as a case study in ethical governance. Expect broader deregulation efforts in crypto and AI, possibly accompanied by the recruitment of more tech insiders into policy roles — all while navigating increasing scrutiny from watchdogs and media.
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