When you take a government job, you usually have to sell stuff. That's the deal. But selling your stake in one of the hottest AI companies right before it doubles in value? That's the expensive version of public service.

David Sacks, who serves as AI and Crypto Czar under President Donald Trump, revealed on the All-In Podcast that he sold his positions in Elon Musk's xAI and AI inference chip startup Groq before joining the administration. The timing, as it turns out, was particularly painful.

The Billion-Dollar Sacrifice

Sacks disclosed the sales during a podcast conversation with Jason Calacanis, explaining that he divested the xAI holdings in February or March to avoid conflicts of interest. While he described his xAI position as "small," the financial implications are anything but.

"XAI just raised an up round at twice the valuation from the last round," Sacks noted during the discussion.

His Groq stake came from an unusual source. The position originated when Groq acquired a company previously owned by his associate, Sunny Madra. Groq has been making moves lately, including announcing a non-exclusive licensing agreement with Nvidia (NVDA) for its inference technology.

Pushing Back Against Critics

The disclosure came as Sacks responded to allegations that he took the government role for personal financial gain. During the podcast, venture capitalist Chamath Palihapitiya estimated that the economic cost to Sacks would exceed a billion dollars by the time he completes his government service.

Sacks was direct about why he decided to discuss the divestitures publicly. "I wouldn't say a word about it if it weren't for mainstream media reporters lying and saying the opposite—that somehow this job is making me money," he explained.

An X user identifying as a Tesla investor, Captain Eli, praised Sacks for what he called a selfless act, highlighting the massive financial gains Sacks sacrificed by selling his xAI stake.

Given xAI's trajectory and recent fundraising success, the decision to divest represents one of those government ethics requirements that looks increasingly expensive in the rearview mirror.