Nvidia(US:NVDA) Benzinga·2026-01-11 05:43Core Insights - David Sacks, former AI and Crypto Czar under the Trump administration, divested his stakes in AI inference chip startup Groq and Elon Musk's xAI to avoid conflicts of interest amid allegations of personal financial gain from his government role [1][2][4] Group 1: Divestment Details - Sacks disclosed during a podcast that he sold his xAI holdings in February or March, prior to joining the administration, and characterized his position as "small" [2] - The stake in xAI originated from Groq's acquisition of a company previously owned by his associate, Sunny Madra [2] - Groq recently entered a non-exclusive licensing agreement with Nvidia Corp. for its inference technology [1] Group 2: Financial Implications - Venture capitalist Chamath Palihapitiya estimated that Sacks' economic sacrifice could exceed a billion dollars by the time he leaves his government position [3] - xAI recently raised an "up round" at twice the valuation from the last round, indicating significant valuation growth [3] Group 3: Public Response and Defense - Sacks defended his divestment amid media scrutiny, stating that he would not have disclosed it if not for false media claims suggesting he was profiting from his government role [4]