David Sacks Issues Major Warning About Iran, But It Goes Unheeded
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In a surprising twist, artificial intelligence isn’t topping the political agenda during a war — especially not one as contentious as the current conflict with Iran, which has thrown energy markets into chaos, strained U.S. relations with the Middle East and Europe, and left even some of President Trump’s staunchest supporters feeling alienated. Just yesterday, Joe Kent, a former congressional candidate backed by Trump, announced his resignation from the National Counterterrorism Center in protest of the Iran war. The implications for the tech and AI sectors are so severe that billionaire David Sacks, a key figure in shaping tech policies during the Trump administration, took a bold step by suggesting that Trump should find a way to exit the Iran conflict.
On his podcast All In last Friday, Sacks and his team outlined several alarming scenarios based on recent events: Iran has signaled a willingness to target oil and gas facilities in neighboring nations, threaten vital desalination plants that provide water to over 100 million people (which Sacks labeled a potential “humanitarian crisis”), and bombard Israel until it either capitulates or resorts to nuclear options. The Democrats might seize control in the midterms, but even more concerning is the possibility of World War III. “This would be a really good time to take stock of where we are and try, I think, to seek an off-ramp,” he advised. “If escalation doesn’t lead anywhere good, then you have to think about how to de-escalate, which I believe involves reaching some sort of ceasefire or negotiated settlement with Iran.”
Unfortunately, Sacks’ advice seems to have fallen on deaf ears. Amid ongoing U.S. military actions against Iranian oil infrastructure, Trump has expressed openness to deploying troops in Iran, criticized NATO allies for their hesitance, and even mentioned the idea of invading Cuba. He also claimed this week that Sacks hadn’t discussed the war with him, a common tactic Trump uses to downplay critics. Sources close to the White House are skeptical that Sacks will manage to get through to the president.
Critics of Sacks might argue that he has reached the limits of his influence over Trump. However, it’s worth noting that all of Trump’s former allies, especially those no longer in his inner circle, have hit that same wall. The MAGA anti-war isolationists feel completely betrayed, while industry leaders concerned about market stability find themselves at the mercy of Trump’s unpredictable decisions. Ironically, Trump has even embraced neoconservatives who once opposed him, as they are now the only voices on the right advocating for regime change in Iran.
Among the Trump oligarchs, technologists may face the longest-lasting repercussions. Unlike the MAGA base, which supported Trump for ideological reasons, Big Tech has a strong financial incentive to maintain a good relationship with him. Their current advantages heavily depend on their connections and ability to stroke his ego, which has yielded benefits over the past year: antitrust investigations have been dropped, trade loopholes have opened, and executive orders have been signed. They may have thought the Iran situation would mirror Venezuela, where they could capitalize on seizing oil supplies, leading them to refrain from intervention.
However, they overlooked a crucial aspect of Trump’s character: he despises being humiliated by his adversaries and tends to retaliate with double the force, often disregarding the consequences. This tendency usually manifests through legal battles in the U.S., but it can also escalate to violence (think January 6th and protests in Minnesota). In this case, he’s attempting to outmaneuver a violent regime that has declared jihad against the U.S. and possesses missiles. The tech leaders who create the innovations have little chance of swaying Trump’s opinion, especially with a political faction on the right encouraging his aggressive stance. Even if Sacks believed he was speaking to a sympathetic audience, there’s no guarantee Trump would appreciate his dissent.
Oh, and crypto is still a thing.
I didn’t catch much of the Blockchain Conference this year (thanks, Iran), but it seems there were significant developments, including the CFTC and SEC clarifying that most digital assets are not securities, which could reshape cryptocurrency regulation. However, they also cautioned that these changes require Congressional approval to become permanent, and the CFTC is already stretched thin. In short, the Clarity Act still needs to be passed, and progress seems slow.
DC’s latest hotspot is…
…another blockchain-themed bar! Polymarket has just announced the opening of The Situation Room, touted as “the world’s first bar dedicated to monitoring the situation.” According to renderings shared online, this bar will be equipped for all your situation-monitoring needs, featuring live feeds, sports games, and Bloomberg terminals. (Polymarket hasn’t commented on the bar’s location yet.)
And now, Recess.
I’ve been doing some spring cleaning and stumbled upon a quart-sized Ziploc bag filled with spare change that I’ve been meaning to drop off at a Coinstar for over a year. But I’ve been procrastinating, and if there’s one thing I’ve learned from celebrity gossip, it’s that paying for stories can sometimes work. So, I’m offering this bag of loose change to anyone who can provide authentic, verified, non-AI generated footage of the alleged altercation between Sam Altman and playwright Jeremy O. Harris at the exclusive Vanity Fair Oscar Party, reportedly over OpenAI’s contract with the Pentagon. (I assume the audience of Regulator includes some Hollywood A-listers.)
And no, I won’t be sending you the cash equivalent of the bag’s value. The condition is that you must take the bag off my hands, including all the Costa Rican currency. AND I’m keeping all the quarters. If someone actually follows through on this offer, I’ll need to get permission from Nilay Patel to break the ethics policy just this once, as this technically qualifies as a quid pro quo, albeit a rather terrible one for whoever sends it.
See you next week.
