Mag 7 sell-off, Wiz rejects Google, UBI, Kamala in, China's nuclear buildout, Sacks responds to PG

Bestie intros: Nostracanis appears! rel="noopener noreferrer" target="_blank">(00:00:00)

• The chapter begins with a humorous introduction where the speaker, Freeberg, experiences technical difficulties and jokes about a "transformation" happening. He then introduces Nostracanis, a character who has predicted various events, including the "hot swap" of Sachs and a speedrun primary.
• Nostracanis also predicts that the "o" podcast will be bought out by Maga and that Alex Jones will become the new host.
• Freeberg then announces that he has moved to Austin, Texas, and purchased a horse ranch. He explains that he and his family are enjoying the homesteading lifestyle and will be spending time in other locations like Tahoe, Park City, and Miami.
• Freeberg also mentions that he will be focusing on investing in startups in Austin and will be making some big announcements in the fourth quarter.
• He expresses his excitement about the move and his plans for the future, but also acknowledges that he will miss the weekly poker game.
• The chapter ends with a reminder about the upcoming Science Corner segment, which Sachs is eagerly anticipating.

Wiz turns down Google's $23B offer, intends to IPO rel="noopener noreferrer" target="_blank">(00:03:50)

• Whiz, a cloud security startup, declined Google's $23 billion acquisition offer, opting instead to pursue an IPO. Whiz was valued at $12 billion in its most recent funding round and has a $500 million annual recurring revenue (ARR). The $23 billion offer represented a significant premium, approximately 50 times current revenue and 23 times forward-looking revenue.
• The decision to decline the offer is likely due to Whiz's belief that they can achieve even faster growth and higher valuation through an IPO. The company's rapid growth in ARR, reaching $500 million in just four or five years, suggests a strong market demand for their services. The recent AT&T Snowflake leak may have further accelerated their growth.
• Google's Cloud business is experiencing significant growth, with revenue reaching $10.3 billion in the last quarter. This growth is driven by the increasing demand for cloud services and Google's focus on expanding its enterprise customer base. Google's Cloud business is becoming a major revenue generator for the company, and they are actively seeking acquisitions to further accelerate its growth.

CrowdStrike's rough week rel="noopener noreferrer" target="_blank">(00:13:30)

• CrowdStrike experienced a major outage last week, impacting millions of Windows machines. This occurred due to a sensor configuration update that bricked devices, requiring a hard reset. Delta Airlines was particularly affected, canceling over 6,000 flights.
• The incident led to a 25% drop in CrowdStrike's stock price, representing a $24 billion loss in market cap. The CEO apologized for the incident, and the company offered Uber Eats gift cards to affected users.
• The outage sparked a debate about the reliability of cybersecurity software. Some, like Shamat Saaks, believe the incident highlights the fragility of code and the potential for widespread outages. Others, like Elon Musk, expressed concerns about CrowdStrike's connections to the "deep state" and removed the company's software from his servers.
• The discussion concluded with a reminder that many companies may be unknowingly running CrowdStrike software. The speaker encouraged viewers to check their systems and make informed decisions about using the company's products.

Market update: Mag 7 sell-off? rel="noopener noreferrer" target="_blank">(00:17:51)

• The market experienced its worst day since 2020 on Wednesday, with the NASDAQ down 3.6% and the S&P down 2.3%. This decline was attributed to a sell-off in the "Magnificent Seven" tech companies, which had seen significant gains earlier in the year.
• The sell-off is likely due to a combination of factors, including a potential weakening of the consumer, increased volatility in the market, and a shift in investor sentiment towards more stable investments. The market may have been "priced to perfection," leading to a correction as investors become more risk-averse.
• The sell-off could also be a result of a "mini AI bubble deflating," as investors rotate out of high-multiple tech stocks and into more value-oriented investments. This shift is likely driven by expectations of interest rate cuts and a potential market recovery.

Sam Altman's UBI study was a mixed bag rel="noopener noreferrer" target="_blank">(00:22:47)

• Sam Altman's UBI experiment yielded mixed results. The study, conducted over three years with 3,000 low-income adults in Texas and Illinois, found that while the $1,000 monthly stipend led to short-term improvements in stress and food security, it had no lasting impact on overall health, mental health, work, or education.
• The panelists discussed the potential downsides of UBI. They argued that UBI could lead to normalization of spending levels, making people less motivated to work and potentially causing inflation. They also pointed out that the study did not address the feasibility of funding UBI on a large scale.
• The panelists favored alternative approaches to addressing poverty and economic inequality. They suggested focusing on education, job training, and providing incentives for people to save and invest. They also emphasized the importance of work ethic and the role of entry-level jobs in building skills and experience.

Succession IRL: Rupert Murdoch's children are in a legal battle over the future of his media empire rel="noopener noreferrer" target="_blank">(00:42:02)

• Rupert Murdoch, at 93 years old, is embroiled in a legal battle with his children over control of his media empire, which includes Fox News, Wall Street Journal, New York Post, and various TV networks in Australia and the UK.
• Murdoch initially intended to give control to his four eldest children, but he changed his trust to favor his more conservative son, Lachlan, over his more moderate children, James, Elizabeth, and Prudence. This change has sparked a legal battle that will begin in September.
• The text discusses the potential impact of this power struggle on Fox News, which has been facing criticism for its political leanings and recent controversies, including a $787 million defamation settlement with Dominion Voting Systems.
• The discussion highlights the potential for a shift in Fox News's content and programming if James or his siblings gain control, potentially alienating its conservative audience and impacting its profitability.
• The text also explores the broader implications of this family feud, with some commentators suggesting that the assets should be sold and the proceeds distributed to the children, allowing them to pursue their own paths.
• The discussion concludes with a reflection on the potential for this power struggle to damage the family relationships and the importance of preserving family unity over the pursuit of power and wealth.

Biden out, Kamala in: Hot swap complete, speed-run primary subverted rel="noopener noreferrer" target="_blank">(00:48:35)

• Kamala Harris is now the presumptive Democratic nominee for president. Joe Biden formally exited the race after pressure from party leadership and donors. Harris has already secured enough delegates to win the nomination, though it won't be official until the Democratic National Convention in August.
• The process of Biden's departure and Harris's ascension was not transparent or democratic. Many people are shocked by the speed at which Harris became the nominee, highlighting the lack of direct democracy in the US presidential election process.
• The race is now a dead heat between Harris and Donald Trump. While Trump is still ahead in most swing states, Harris has more upside potential than Biden did. The panelists discuss the potential impact of Harris's VP pick on the election, with Shapiro (Pennsylvania governor) and Kelly (Arizona senator) being considered the most likely choices.
• The panelists debate the best VP pick for Harris. Some argue that she should choose someone who can deliver a specific state, while others believe she should pick someone who aligns with her ideology. The panelists also discuss the potential impact of a Jewish vice president on the election.
• The panelists offer their predictions for the race. They believe that the election will be close and that both sides will accept the results. They also discuss the potential impact of the VP pick on the outcome of the election.

Antisemitism rising, Josh Shapiro as a VP candidate rel="noopener noreferrer" target="_blank">(01:03:08)

• The conversation begins with a shocking anecdote about a Jewish individual who was denied a chairmanship position due to concerns about the current climate and potential backlash. This highlights the growing anti-Semitism and fear of Jewish leadership in powerful positions, particularly in light of the Gaza conflict.
• The discussion then shifts to Josh Shapiro, a potential VP candidate, and the concerns surrounding his Jewish identity. The speakers believe that some individuals are hesitant to support Shapiro due to the potential for protests and backlash from those opposed to Israel's actions in Gaza.
• The speakers also discuss the potential political strategy behind these concerns, suggesting that the Democratic party might be strategically avoiding Jewish leadership to appease certain demographics, particularly in states like Michigan, where a large Arab and Muslim population exists. This strategy aims to win back votes by appearing more progressive on the issue of the Gaza conflict.

Sacks responds to smear campaign rel="noopener noreferrer" target="_blank">(01:08:37)

• David Sacks, former CEO of Zenefits, addresses a smear campaign against him orchestrated by Paul Graham, founder of Y Combinator, and Parker Conrad, former CEO of Zenefits. Sacks refutes claims that he orchestrated a coup against Conrad, emphasizing that Conrad was sanctioned by the SEC for insurance fraud and that the situation was thoroughly investigated by regulators.
• Sacks argues that Graham's animosity stems from his belief in Conrad's version of events, despite not being involved in the situation. Sacks highlights the hypocrisy of Graham's actions, considering he is sensitive about his own reputation while actively trying to damage Sacks's.
• Sacks criticizes the culture of Y Combinator, suggesting they protect their own and engage in bullying tactics. He believes that their influence and power have created a toxic environment in Silicon Valley, where personal attacks and smear campaigns are used to silence dissent. Sacks encourages everyone to focus on building great companies and move past this ugliness.

Science Corner: China's nuclear buildout rel="noopener noreferrer" target="_blank">(01:26:46)

• China is aggressively expanding its nuclear power capacity, aiming to triple its electricity production by 2050. This expansion includes a significant focus on new, safer, and more efficient Gen 4 reactors, like the high-temperature gas-cooled Pebble bed reactor.
• China's nuclear power program is significantly cheaper than the US's, both in terms of electricity production costs and the cost of building new capacity. This cost advantage is further amplified by China's rapid construction pace, highlighting a significant industrial challenge for the US.
• The US needs to prioritize nuclear power development to remain competitive with China. The speaker argues that nuclear power is crucial for powering advanced industries like AI and that the US must embrace a more proactive approach to nuclear technology, including deregulation and investment, to avoid falling behind China in the global technological race.