US crypto czar David Sacks warns of Orwellian AI that spies on citizens

David Sacks, the US crypto and AI czar, warned on Monday that artificial intelligence could soon enable “Orwellian” levels of surveillance on citizens.

Sacks cautioned that the greatest threat from AI isn’t machines turning against humans. He commented, “What we’re really talking about is Orwellian AI. We’re talking about AI that lies to you, that distorts an answer, that rewrites history in real time to serve a current political agenda of the people who are in power.”

Sacks urges regulations focusing on AI misuse instead of developers

Sacks touched on the Trump administration’s approach to crypto and artificial intelligence, drawing a contrast to the last administration’s policies during an episode of Andreessen Horowitz’s’ The Ben & Marc Show, which aired on Monday.

He criticized the Biden administration and Democratic-run states, such as California and Colorado, for being overly aggressive in their push for AI consumer protection rules that address “algorithmic discrimination.”

He warned that excessive regulation poses a threat to AI, turning it into a political instrument that reflects government bias and erases the inconvenient truths of history.

Sacks noted that an Orwellian system, one that can deliberately alter information to create a reality that suits the interests of political leaders, poses the greatest risk to the public. He explained, “You’ve got the surveillance issue. Where AI is gonna know everything about you. It’s gonna kind of be your personal assistant, and so it’s kind of the perfect tool for the government to monitor and control you. And to me, that is by far the biggest risk of AI.”

Although he emphasized that the real issue isn’t with the technology itself, but with the people who choose to misuse it, he has advocated for rules that target individuals who weaponize AI rather than blanket regulations that curtail the industry and developers at large.

He noted that laws against discrimination already exist, so regulators should focus on punishing the companies that misuse AI rather than the firms that build it.

Sacks accused Anthropic of fear-mongering 

Sacks recently aimed at the AI research firm Anthropic, accusing it of stoking fear to shape future AI policies.

The firm had released an essay titled “Technological Optimism and Appropriate Fear,” which set off a heated discussion across social media platforms over the future of AI regulation. Sacks raised an issue with the essay, stating the firm wants to manipulate public fear of AI to influence regulations.

Nonetheless, billionaire investor and LinkedIn co-founder Reid Hoffman came to Anthropic’s defense, calling the company “one of the good guys.” His post, however, prompted a quick rebuttal from Sacks, leading to a brief online exchange.

In one of the posts, Sacks noted that the core issue was Anthropic’s supposed plan to influence blue states like California to pass politically biased AI rules quietly.

As earlier reported by Cryptopolitan CEO Dario Amodei has, however, pushed back against the official’s claims, calling them “inaccurate.” He insisted the company has consistently pushed for federal oversight to avoid a patchwork of conflicting state regulations.

The company noted that its public benefit charter commits it to using AI for the greater good of society and to maintaining US leadership in the sector, adding that it’s working toward the same objectives as the Trump administration and citizens alike.