For much of 2024, one of President-elect Donald Trumps staunchest allies in Silicon Valley was David Sacks, an entrepreneur, venture capitalist, and co-host of the popular podcast All-In. On his podcast and social media, Sacks argued that Trumps pro-industry stances would unleash innovation and spur growth in the tech industry. In June, Sacks hosted a fundraiser for Trump in San Francisco that included $300,000-a-person tickets. Now, Sacks has been rewarded with a position inside the White House: the brand-new role of "AI & crypto czar." Its unclear how much power this role actually has. It appears that this will be a part-time role, and that Sacks will remain with his VC fund Craft. This murkiness, and the fact that Sacks will not have to go through the Senate confirmation process, is drawing concerns over conflict of interest and lack of oversight. Regardless, Sacks will start the Administration with Trumps ear on key policy decisions in these two rapidly growing sectors. Leaders inside both industries largely cheered the decision. A whole-of-government approach that collaborates closely with private industry is essential to winning the AI race, and a designated AI leader in the Administration can help do that, Tony Samp, the head of AI policy at the law firm DLA Piper, tells TIME.Sacks and TrumpSacks has long been close to the center of Silicon Valleys power structure. A member of the PayPal mafia, he was that companys chief operating officer for several years, and grew close with Elon Musk, who has also been tasked with a new role in Trumps Administration. While many Silicon Valley leaders espoused pro-Democrat views especially during the Obama years, Sacks became increasingly vocal in his conservative stances, especially around the Russia-Ukraine war and fighting censorship on tech platforms. His podcast All-In is currently the third most popular tech podcast on Apple Podcasts, according to Chartable.After the Jan. 6 insurrection, Sacks said that Trump had disqualified himself from being a candidate at the national level again. But he threw his weight behind Trump this year, including during a speech at the Republican National Convention (RNC) in July, in which he warned Republicans of a world on fire. At one lavish fundraiser, Sacks lobbied for Trump to pick J.D. Vance as his running mate. Sacks also hosted Trump on All-In, and complained that it was so hard to do business during the Biden Administration.Sacks views on AISacks is a player in the AI ecosystem himself: this year, he launched an AI-powered work chat app called Glue. He has often expressed support for a freer ecosystem empowering AI companies to grow, and has argued that most of whats on the internet should be available for AI to train upon under fair use.This appointment is another signal that startups and venture capital will be a central focus of the incoming Administration's approach to AI, says Nik Marda, the technical lead for AI governance at Mozilla. This also means particular issues like promoting open source and competition in AI will be at the forefront.Sacks has advocated for the integration of AI technology into warfare and national security tools. On an All-In episode in April, he said he hoped Silicon Valley companies would become more involved with U.S. defense efforts. I do want the United States, as an American, to be the most powerful country. I do want us to get the best value for our defense dollars. The only way thats going to change is if the defense industry gets disrupted by a bunch of startups doing innovative things, he said. (Just this week, OpenAI announced a partnership with the defense contractor Anduril.)Sacks has also come out strongly against AI models displaying any sort of censorship. In this way, Sacks is aligned with Musk, whose AI model Grok will generate controversial images that other AI models will not, including a Nazi Mickey Mouse.However, there will be many AI thinkers competing for influence in Trumps White House, including Marc Andreessen, who wants AI to be developed as fast as possible, and Musk, who has warned of the technologys existential risks.Sacks and cryptoSacks new czar role also includes oversight of crypto. Crypto investors were largely cheered by his appointment, because he is supportive of the space and will likely reinforce Trumps intentions of offering light-touch regulation. Sacks has invested significantly in Solana, a cryptocurrency attached to its own blockchain that was previously championed by Sam Bankman-Fried. Sacks VC fund Craft also invested in the crypto companies BitGo and Bitwise.Trump, in his announcement of Sacks appointment, wrote that Sacks will work on a legal framework so the Crypto industry has the clarity it has been asking for, and can thrive in the U.S. Sacks joins several other recent pro-crypto Trump appointees, including new SEC chair nominee Paul Atkins. The Securities Exchange Commission (SEC) under Biden, in contrast, was very aggressive in suing crypto companies it deemed were violating securities laws.Trump, meanwhile, has been eager to claim credit for the cryptos recent successes. When Bitcoin crossed $100,000 for the first time, Trump wrote on his social media platform Truth Social, YOURE WELCOME!!!Read More: What Trumps Win Means for CryptoConcerns about conflict of interestWhile Sacks is supportive of both industries, it is unclear how much power he will actually have in this new role. Bloomberg reported that Sacks will be a special government employeea part-time role that doesnt require him to divest or publicly disclose his assets, and sets a maximum number of 130 working days a year. A Craft spokeswoman told Bloomberg that Sacks would not be leaving the VC firm.It remains to be seen whether Sacks will have a staff, or where his funding will come from. Other related government agencies, like the Department of Commerce, will likely have completely different workflows and prerogatives when it comes to AI. Czar roles can be a bit funky and more dependent on relationships and less dependent on formal authorities, Marda says.Suresh Venkatasubramanian, an AI advisor to Bidens White House starting in 2021, expressed concern about the lack of oversight of this new position, as well as the conflicts of interest it could lead to. The roles and responsibilities described in the press announcement describe a lot of what the director of OSTP [Office of Science and Technology Policy] does, he tells TIME. The only difference is lack of oversight. Especially given that this particular appointment is of someone who has investments in AI and crypto, you have to wonder whether this is serving the interest of the tech industry, or a particular few individuals.