White House AI Adviser Levels Regulatory Capture Allegations
David Sacks, who serves as the Trump administration’s “Crypto and AI Czar” while maintaining his venture capital activities, has publicly accused AI startup Anthropic of running what he calls a “sophisticated regulatory capture strategy based on fear-mongering.” According to reports, Sacks made these claims on his personal X account, stating that Anthropic is “principally responsible for the state regulatory frenzy that is damaging the startup ecosystem.”
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Anthropic’s Growing Washington Presence
Sources indicate that Anthropic has significantly increased its lobbying expenditures amid the current AI regulatory debate. Political influence reports show the startup spent $910,000 on lobbying during the second quarter of 2025, nearly tripling its spending from the previous quarter. The company has reportedly hired lobbying firm Continental Strategy to advance its interests in Washington, though analysts suggest this places them alongside other major AI players like OpenAI, which has also substantially increased its lobbying activities.
Anthropic Co-Founder and Head of Policy Jack Clark responded to Sacks’ allegations on X, stating that the company updated its regulatory views through “working with the startup ecosystem” and expressed interest in collaborating with the administration on developing federal standards. The company’s official communications, including social media statements and policy announcements, emphasize their commitment to supporting new AI startups.
Regulatory Context and Industry Dynamics
The current debate occurs against a backdrop of significant AI industry investment in political influence. According to the Wall Street Journal, Silicon Valley firms have reportedly poured over $100 million into new Super PACs to advance pro-AI messaging ahead of the 2026 midterm elections. This follows a pattern established during the early 2020s when tech companies successfully lobbied for industry-friendly digital privacy laws.
Anthropic’s regulatory positioning has shown some evolution, according to policy analysts. The company initially opposed California AI legislation but later supported a revised version, with company statements emphasizing collaboration with policymakers. Industry observers note that OpenAI and Meta have also expressed support for certain regulatory measures, suggesting broader industry acceptance of some government oversight.
Questions About Sacks’ Dual Roles
The regulatory capture allegations come as Sacks’ own position faces scrutiny. According to reports, Senator Elizabeth Warren has questioned whether Sacks has exceeded his 130-day limit as a special government employee. Sources indicate Sacks has been dividing his time between Silicon Valley and Washington, though it remains unclear whether he has technically surpassed service limits.
Critics point to Sacks’ background as a member of the “PayPal Mafia” and his continued venture capital activities through Craft Ventures. Reports indicate his firm invested $22 million in Vultron, an AI startup serving federal contractors, while press releases highlighted Sacks’ White House role. This has reportedly raised questions about potential conflicts of interest, though Sacks has claimed to have divested significant AI and crypto investments.
Administration Relations and Industry Impact
Despite the public criticism, sources suggest there appears to be little overall tension between the Trump administration and Anthropic. The company reportedly supported Trump’s AI Action Plan, and the White House has used Anthropic’s statements as evidence of industry backing for administration policies. CEO Dario Amodei has appeared at events with the former president, and the company joined the White House Pledge to America’s Youth.
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The debate over AI regulation and industry dynamics continues as companies navigate the complex relationship between innovation and oversight. As discussed in various industry analyses, the outcome of these regulatory battles could significantly shape the future AI landscape and determine which companies benefit from emerging policy frameworks.
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