When Vultron announced its $22 million funding round, the AI startup highlighted a key investor: Craft Ventures, the firm co-founded by White House AI advisor David Sacks. This raises questions about conflicts of interest in the current U.S. administration, where Sacks holds a significant role in both AI and crypto while maintaining his role at Craft Ventures.
Sacks has been granted two ethics waivers, allowing him to shape federal policy while retaining financial stakes in the industries he oversees. Some critics argue this represents a new model of public service where the lines between public duty and private gain are blurred.
Senator Elizabeth Warren has voiced criticism of these arrangements. She questioned Sacks’ simultaneously leading a firm investing in crypto while guiding the nation’s crypto policy.
However, Sacks’ supporters point to the sacrifices he has made in serving the government. According to the waivers, he and Craft Ventures have divested over $200 million in digital assets.
Meanwhile, those concerned about conflicts of interest argue a precedent has been set. The rapid passage of crypto-friendly legislation, combined with ongoing investments in AI companies that serve the federal government, suggests that Sacks and others with similar arrangements have positioned themselves and their broader trajectory to benefit from their access to government. According to TechCrunch.
