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Executive capture

The Technocratic Oligarchy: David Sacks and the Privatization of Policy

Active profiteering
Case Dossier EXC-KLP-001
STATUS
Active profiteering
SEVERITY
Critical
DATE
2025-11-30
DOMAIN
Executive Capture
SUBDOMAIN
Kleptocracy
CAPTURE VECTOR
Technocratic capture
TAGS
kleptocracy david-sacks nvidia crypto uae conflict-of-interest all-in-podcast
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David Sacks, serving as the administration's unpaid 'AI and Crypto Czar,' utilizes the 'Special Government Employee' loophole to retain hundreds of tech investments while drafting policies—such as the AI Action Plan and the GENIUS Act—that directly enrich his portfolio.

Summary

By late 2025, David Sacks had established himself as the central node of a “technocratic oligarchy.” Designated as a “Special Government Employee” (SGE), Sacks avoided standard divestment rules, retaining over 700 tech investments while serving as the White House AI and Crypto Czar. He used this dual role to dismantle export controls for Nvidia (benefiting his portfolio), pass the GENIUS Act to regulate stablecoins (benefiting his stake in BitGo), and steer military contracts to defense-tech firms like Anduril (another investment).

Capture Mechanism: The Moonlighting Czar

This case demonstrates how the state is repurposed as a venture capital accelerant.

  • Regulatory Capture: Sacks drafted the “AI Action Plan” and pushed to lift bans on chip sales to the Middle East and China. This directly facilitated the sale of 500,000 chips to the U.A.E., a deal that analysts estimate could generate $200 billion for Nvidia (a key partner in Sacks’s ecosystem).
  • Legislative Self-Dealing: Sacks championed the GENIUS Act for stablecoins. Immediately upon its passage, BitGo—a company in which Sacks’s firm owns a 7.8% stake—announced an IPO, capitalizing on the new regulatory environment Sacks created.
  • Monetizing Access: Sacks attempted to have his “All-In” podcast host an official White House AI summit, asking sponsors for $1 million for access to the President. While the Chief of Staff intervened to force a co-host, the podcast’s revenue still jumped from $15 million to $21 million due to its perceived proximity to power.

Analysis

Sacks represents the fusion of Silicon Valley capital and Executive authority. Unlike traditional corruption (bribery), this is structural self-dealing. The policy is the profit strategy. By flooding the world with American tech to “beat China,” Sacks aligns national security rhetoric with the specific financial interests of his venture capital network, erasing the line between public service and private equity.