David Sacks, the AI and Crypto Czar under the President Donald Trump administration, has disclosed that he divested his stakes in AI inference chip startup Groq and Elon Musk‘s xAI to avoid potential conflicts of interest. The revelation comes in response to allegations that he assumed a government role for personal financial gain.
Groq recently announced a non-exclusive licensing agreement with Nvidia Corp. (NASDAQ:NVDA) for its inference technology.
Sacks Sells AI Holdings
Sacks made this revelation during a podcast discussion with Jason Calacanis, released by All-In Podcast. He stated he sold his xAI holdings in February or March, before joining the administration.
While Sacks characterized his position as “small,” he stated that the stake originated from Groq’s acquisition of a company previously owned by his associate, Sunny Madra.
He also mentioned that xAI had a significant valuation increase, but he had to divest it, in addition to Groq.
“XAI just raised an up round at twice the valuation from the last round.”
Financial Sacrifice Draws Praise
During the conversation, venture capitalist Chamath Palihapitiya estimated that the economic cost to Sacks would exceed a billion dollars by the time he leaves his government position.
An X user, Captain Eli, who identifies himself as a “Tesla investor,” also praised Sacks for his selfless act, stating that he sacrificed massive financial gains by divesting his xAI stake.
Sacks defended the disclosure amid media scrutiny. He noted, “I wouldn’t say a word about it if it weren’t for mainstream media reporters lying and saying the opposite—that somehow this job is making me money.”
Sacks’ divestment of his stake in xAI, a prominent player in the AI sector, is a notable announcement, given the company’s recent performance.
Photo Courtesy: gguy on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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