Crypto & AI Czar Breaks Silence on DeepSeek Hype, Teases What Next

Crypto & AI Czar David Sacks took to X to share his thoughts on the future of the Artificial Intelligence (AI) race amid the current DeepSeek Hype.

With Donald Trump stepping into power in the United States, Sacks says the competition in this AI sector is about to get tougher.

At the same time, the Crypto and AI Czar believes that the new president made the right decision by revoking Joe Biden’s AI-related executive order.

David Sacks’ Thoughts on DeepSeek

For a background, Chinese startup DeepSeek is buzzing the internet, with many discussing how it can challenge other top AI giants.

Unlike established rivals like OpenAI and Anthropic, which have invested billions of dollars in computing power alone, DeepSeek has achieved a comparative milestone with fewer funds.

Reports suggest it has spent around $5.6 million to create its groundbreaking ChatGPT rival.

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Apart from being a cheaper AI model, this new tool currently exposes the shortcomings of the entire industry’s approach. DeepSeek’s AI model matches OpenAI’s best Large Language Model (LLM) GPT-4o, judged more advanced.

Based on all these capabilities and functionalities of the AI model, Sacks said he has confidence in the AI race and the place of the future of the United States.

Biden Era EO on AI and Need for Repeal

In October 2023, Former President Joe Biden signed an executive order on AI. At the time, he focused on balancing the needs of cutting-edge technology companies with national security and consumer rights.

He specifically created an early set of guardrails fortified by legislation and global agreements for the AI sector. At the time, the 46th president of the US acknowledged that AI holds much potential and perils.

Industry experts believe these guardrails are anti-growth, making China beat the United States.

However, Donald Trump has rescinded Biden’s EO on AI safety as soon as he came into office on January 20.

In the meantime, it is unclear how the 78-year-old Republican politician intends to safeguard AI technology. As a progressive technocrat, David Sacks will play a role in shaping the sector’s future

Speaking of the previous executive order, Alexandr Wang, the CEO of AI company Scale, says he “thinks that the previous order had a lot in it.” Somehow, “It’s hard to comment on each individual piece of it. There are certainly some parts of it that we strongly agree with.”

Stepping up with Crypto Executive Order

Generally, President Trump has implemented a few Executive Orders, including one favoring the crypto ecosystem.

A few days ago, he signed an Executive Order to establish a framework for digital assets.

Alongside this order was introduced the Presidential Working Group on Digital Asset Markets. This working group is tasked with evaluating the creation of a national digital asset stockpile.

Sacks doubles as the president of this initiative. The Secretary of the Treasury, the Chairman of the Securities and Exchange Commission (SEC), and others will also serve in the working group.

The responsibility of the Working Group includes engaging with experts not part of the federal government. Its members must also draw on knowledge from the developing digital assets market.

In addition, this Presidential Working Group on Digital Asset Markets is charged with assessing the feasibility of developing a national strategic digital currency reserve. The federal departments and agencies must describe and suggest possible ways of creating and sustaining this stockpile.

The ultimate goal is such that the US will maintain the lead as a crypto hub globally