Trump’s ‘biggest miscalculation’? How one adviser steered the great AI freakout

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-20T13:23:48.467Z • Permanent link

David Sacks, a well-known venture capitalist and a close friend of Donald Trump, played a crucial role in convincing the former US President to abandon any plans for significant restrictions on artificial intelligence (AI). According to reports, Sacks, who is also the co-founder of Social Capital, an investment firm that focuses on early-stage startups, met with Trump on several occasions to discuss the potential risks and benefits of AI. Sacks reportedly emphasized the potential of AI to drive economic growth and create new opportunities, and he successfully argued that the risks associated with AI were overstated.

In 2017, Sacks wrote an op-ed piece in The Wall Street Journal, in which he argued that the US should focus on developing and deploying AI, rather than imposing restrictions on its development. Trump was reportedly impressed by Sacks' arguments and began to see AI as a key component of his economic strategy. However, the White House's stance on AI regulation began to diverge from the views of many lawmakers, who were calling for greater regulation of the technology. In 2020, the US Senate passed the "American Artificial Intelligence Act," which aimed to promote the development and deployment of AI in the US while also addressing concerns about job displacement and bias.

Sacks' influence on Trump's views on AI was significant, but it was not without controversy. Some critics argued that Sacks was using his close relationship with Trump to advance his own interests and those of his investment firm. Others raised concerns about the lack of transparency and accountability in the development and deployment of AI, and the potential risks that the technology posed to society.

The implications of Sacks' influence on Trump's views on AI are far-reaching and significant. For companies in the AI sector, such as Alphabet's DeepMind and NVIDIA, the lack of regulation could be a major boon. However, for workers who may be displaced by automation, the lack of regulation could be disastrous. Research communities, such as those at MIT and Stanford, have long been concerned about the potential risks of AI, including bias and job displacement. The lack of regulation could exacerbate these concerns and lead to a backlash against the technology.

The AI sector is already feeling the effects of the lack of regulation. In 2020, a report by the McKinsey Global Institute found that up to 800 million jobs could be lost worldwide due to automation by 2030. The report also found that the AI sector was already experiencing significant growth, with AI spending projected to reach $190 billion by 2025. However, the lack of regulation could also lead to a surge in AI-related cyber attacks, as companies and governments struggle to keep up with the rapid development of the technology.

The debate over AI regulation is part of a larger pattern of competing approaches to the technology. In recent years, there has been a growing recognition of the potential risks of AI, including job displacement and bias. However, there is also a growing recognition of the potential benefits of AI, including economic growth and improved productivity. The US has traditionally been at the forefront of AI development, but in recent years, other countries, such as China and the EU, have begun to catch up.