AI Stocks Subdued After Trump Names David Sacks ‘White House AI & Crypto Czar:’ Retail Indifferent

In another market-friendly move, President-elect Donald Trump said late Thursday that entrepreneur and podcaster David Sacks will be the “White House A.I. & Crypto Czar.”

The incoming president announced this on the Truth Social media platform, saying, “In this important role, David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness.

Sacks, a former PayPal executive and a pro-Trumper who raised funds for the 2024 Republican campaign, will work toward making America the clear leader in both areas, he added.

Sacks is vested with the responsibility of safeguarding free speech, steering away from big tech bias and censorship, and working on a legal framework for the crypto industry to bring the clarity it seeks. 

He will also lead the Presidential Council of Advisors for Science & Technology, Trump said.

Open AI’s Sam Altman, Gemini cryptocurrency exchange founder Tyler Winklevoss, Box, Inc. CEO Aaron Levie, Tesla’s Elon Musk and Ripple CEO Brad Garlinghouse were among the early ones to congratulate the new appointee. 

Sacks’ Role:

With Sacks’  appointment, crypto advocates now have direct access to Trump and the White House, according to a Fortune report. He will also likely serve as a liaison between Congress and federal agencies such as the SEC and the Commodity Futures Trading Commission that have a purview over digital assets.

Regarding AI, Sacks is expected to oversee the federal government's adoption and regulate the use of the technology. The latter is particularly important as widespread AI adoption by businesses and consumers poses benefits, and risks, centering national security privacy, jobs etc.

Tepid Reaction

Among AI stocks, Super Micro Computer, Inc. ($SMCI) rose about 2%. But retail preferred to stay on the sidelines.

SMCI sentiment, December 6, 2024, premarket as of 6:23 am ET | Source: Stocktwits

 Palantir Technologies, Inc. ($PLTR), which derives substantial revenue from the government vertical, was up over 1.50%.

PLTR sentiment, December 6, 2024, premarket as of 6:23 am ET | Source: Stocktwits

On Stockwits, sentiment toward Palantir was 'bearish' (44/100), although message volume was 'high.'

SoundHound AI, Inc. ($SOUN) was seen extending the rally from Thursday and was up about 11%.

However, AI-levered big techs were seen edging lower ahead of the non-farm payrolls report. 

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