When Donald Trump appointed David Sacks, former tech exec and member of the PayPal Mafia, as his “White House AI and Crypto Czar” on December 5, the news immediately sent ripples through the tech and crypto worlds. On top of his influence in crypto circles, where he’s a vocal Solana supporter, Sacks is making waves for his strong stance on artificial intelligence (AI)—specifically, his harsh criticism of OpenAI’s transformation from a nonprofit to a “for-profit” entity.
And if you’re wondering why this matters, it’s because Sacks’ views align closely with Elon Musk’s—and as you’ll see, Musk has some major beef with OpenAI. Let’s break down the drama surrounding Sacks’ appointment, his views on OpenAI, and what this means for the future of AI and crypto in the U.S.
David Sacks: From PayPal Mafia to White House Czar
David Sacks is no stranger to tech. As a key figure in the PayPal Mafia—a group of influential former PayPal executives that includes Elon Musk, Peter Thiel, and YouTube co-founder Steven Chen—Sacks has a track record of major success in Silicon Valley. He’s also known for his investments in various blockchain projects and as a staunch advocate for crypto, especially Solana.
Sacks’ appointment as Trump’s AI and Crypto Czar, announced via Truth Social, was met with general enthusiasm in the crypto world. He’s seen as a strong voice for decentralized technologies, and his business savvy has earned him praise in the industry. But Sacks is also a major proponent of self-regulation in the AI sector and believes in an open-source, hands-off approach to AI development, a position that’s in stark contrast to some government-led regulatory efforts that could stifle innovation.
OpenAI’s Controversial Pivot: From Nonprofit to For-Profit
While Sacks’ appointment seems like a win for tech enthusiasts, one group that might be a little nervous is OpenAI—specifically, its CEO Sam Altman. The company’s transition from nonprofit to for-profit has drawn serious criticism, and it’s become a major point of contention, especially between OpenAI’s co-founder Elon Musk and its current leadership.
When OpenAI first launched in 2015, it was intended as a nonprofit research organization, driven by the lofty mission of advancing AI for the good of humanity. However, under Altman’s leadership, OpenAI shifted gears, creating a “for-profit branch” to scale its AI products and generate revenue to support its ongoing research.
Musk, who was one of OpenAI’s original backers to the tune of $50 million, has been vocal about his opposition to this pivot. In fact, Musk is currently suing OpenAI, seeking to block its transformation into a for-profit business. Musk argues that he and other early investors were misled, under the impression that OpenAI was going to remain a nonprofit entity.
David Sacks’ Take: OpenAI Went From “Philanthropy to Piranha”
This brings us back to David Sacks. On a recent episode of the All-In Podcast, where he was joined by billionaire investor Mark Cuban, Sacks didn’t hold back when discussing OpenAI’s shift to for-profit status. In no uncertain terms, he called OpenAI’s transformation a “bait-and-switch,” accusing the company of tricking Musk into investing in what was supposed to be a philanthropic venture.
According to Sacks, the company had initially raised billions under the premise that it would focus on nonprofit goals, only to flip the script and pursue massive profits. He went as far as to compare OpenAI’s change of heart to a “piranha,” saying the company had moved from being a “nonprofit philanthropy” to a “for-profit piranha company.”
This was a direct shot at OpenAI’s shift in business model and Musk’s frustration with how things have unfolded. The tech world has been abuzz with debate over whether OpenAI’s motivations are truly aligned with their initial mission or whether the company has simply become another corporate juggernaut chasing profits.
Mark Cuban Weighs In: “Karma Is a Bitch in Business”
Sacks wasn’t alone in his criticism. Cuban, a fellow guest on the podcast, echoed the sentiment, adding that he wouldn’t want to “do business with people like that.” Cuban also warned that companies who “f— over” their investors would eventually face consequences, saying, “Karma is a bitch in business, too.”
These remarks weren’t just theoretical; they reflected a broader frustration in the tech world about the ethics of business practices and how companies like OpenAI handle their investors and public image.
A Tense Moment: Altman Congratulates Sacks, Musk Laughs
In what seemed like a somewhat ironic twist, Sam Altman, CEO of OpenAI, was one of the first to publicly congratulate David Sacks on his appointment as White House Czar. But things quickly took a turn for the awkward when Elon Musk responded to Altman’s congratulatory post with an emoji of himself laughing so hard he was crying.
It’s safe to say that the bad blood between Musk and OpenAI, as well as between Musk and Sacks, isn’t exactly a secret. Musk has been vocal about his dissatisfaction with OpenAI’s shift, and Sacks, with his close ties to Musk, clearly shares the sentiment.
Adding even more fuel to the fire, Ryan Selkis, the former CEO of the Messari cryptocurrency exchange, responded to Altman’s post with a sarcastic meme, further stoking the flames of the ongoing tension between Altman, Musk, and Sacks.
What’s Next for AI and Crypto Under Sacks’ Leadership?
As Trump’s AI and Crypto Czar, David Sacks is expected to have a major influence on both the regulation of cryptocurrency and the development of AI in the U.S. Given his stance on self-regulation, Sacks is likely to advocate for policies that limit government intervention in these industries, allowing them to grow and evolve organically. However, the criticism of OpenAI’s business practices raises questions about the role that ethics and accountability will play in the tech world moving forward.
For OpenAI, Sacks’ appointment could mean more scrutiny as the company navigates the fallout from its business shift. And for Musk, who is already in a battle with OpenAI’s leadership, Sacks’ appointment might just signal a growing alignment of views between the two men as they push back against what they see as corporate greed in the AI space.
In any case, the clash between the tech titans—Musk, Altman, and Sacks—has only just begun, and it’s likely to make for some interesting developments in both the crypto and AI industries.
Conclusion: A Power Struggle in the Tech World
David Sacks’ appointment as Trump’s AI and Crypto Czar signals a bold new direction for U.S. policy on emerging technologies, and it promises to make waves in both the crypto and AI sectors. With his strong stance on self-regulation and criticism of OpenAI’s shift to for-profit, Sacks is poised to play a key role in shaping the future of both industries.
For OpenAI, the road ahead could be rocky, with ongoing legal battles and mounting criticism from former allies like Musk and Sacks. And for the rest of the tech world, the drama unfolding between Musk, Sacks, and Altman could have far-reaching implications, shaping the evolution of AI and crypto for years to come.
