TWiST News: Bitcoin, Saylor's Microsoft Pitch, and the Delaware-Tesla Fight | E2054

Jason and Alex kick off the show (0s)

• Michael Saylor believes Bitcoin is the best asset to own and is uncorrelated to the stock market, but this claim has been disputed as Bitcoin's value has been shown to be correlated to the stock market, especially during the COVID-19 pandemic when many assets, including Bitcoin, NFTs, and stocks, experienced a surge in value due to the influx of stimulus checks in the system (47s).
• The COVID-19 pandemic led to a surge in value for many assets, including Bitcoin, NFTs, and stocks, as people received stimulus checks and invested in various markets, but the values eventually came back down (40s).
• This Week in Startups is sponsored by OpenPhone, which offers business phone numbers that work through an app on smartphones or desktops, and listeners can get an extra 20% off any plan for their first six months (1m1s).
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• The hosts, Jason Calacanis and Alex Wilhelm, discuss their love for YouTube and music, and Jason gives a shoutout to a YouTuber named Doug, who creates content called The Daily Doug, where he reacts to music videos, including one of his favorite songs, "Tunnel of Love" by Dire Straits (2m30s).
• Doug's content on YouTube has allowed him to potentially earn a minimum of $100,000 per year, showcasing the potential for creators to make a living on the platform (4m0s).
• The hosts also mention several topics they will be discussing, including Michael Saylor and Microsoft, Tesla and the Delaware Chancery Court, and the Twist 500 updates, among others (2m21s).
• A classical composer, known as Deli Dug, is making $10,000 a month by creating 10-20 minute videos every day, showcasing his music expertise, and has gained 418,000 subscribers on YouTube (4m2s).
• Instead of donating to charities, which are often inefficient, it's preferred to give money directly to people doing the work, such as through tipping on YouTube or TikTok (4m17s).
• Tipping on YouTube has become a significant way to support creators, with thousands of dollars given each year, and this practice is believed to make the world better (4m54s).
• When attending live music events, it's common to give $50 or $100 bills to musicians who are exceptionally good, as it's more than they expect to receive (5m24s).
• Donations are still made to charities, such as Kimbal Musk's charity, Global Green, and Mark Nelsen's charities, as well as Stevie VanZant's music charity for teaching kids rock and roll (5m53s).
• New jobs are being created in the music industry, such as Deli Dug's, where people can make a living doing what they love, and this is seen as a positive trend (6m14s).
• The music industry has various revenue streams, and artists like Rihanna have successfully leveraged these streams, such as through her beauty and clothing brand, Fenty (6m36s).
• On YouTube, bands like Suicide Silence have created alternate revenue streams, such as through the Garza show, which features interviews and discussions about music and touring economics (6m51s).
• Having alternate revenue streams is seen as a positive development, allowing artists to support themselves through various means, such as streaming and merchandise sales (7m16s).
• A shoutout is given to someone for finding love, with a request for viewers to give a thumbs up and subscribe to the channel for more content (7m28s).

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Michael Saylor's Bitcoin Pitch to Microsoft (8m47s)

• Michael Saylor, the CEO of MicroStrategy, has become the second-largest holder of Bitcoin, owning over 400,000 Bitcoins worth $40 billion, after buying them on loan over the past four to five years, which raises questions about his actions (9m56s).
• Saylor has a colorful past, including previous SEC issues, and has become increasingly enthusiastic about Bitcoin, which has led to skepticism and criticism (10m32s).
• An invitation has been extended to Michael Saylor to appear on the podcast to discuss his Microsoft pitch and answer questions about his Bitcoin holdings (11m21s).
• The podcast host has no animosity towards Saylor and has even invested a seven-figure amount in Bitcoin, with the investment decision made in consultation with his wife, who is described as an astute and smart individual (11m45s).
• The host's wife is credited with making smart trades and investment decisions, including buying their houses, and is said to be smarter and better-looking than the host, who brings humor to their marriage (12m13s).
• A seven-figure Bitcoin trade was mentioned, and the person had bought some Bitcoin as well, but their account got hacked, specifically from btc-e, a Bitcoin exchange that was hacked in the past (12m47s).
• Michael Saylor made a pitch to the board of Microsoft, suggesting that the company should move its treasury to Bitcoin, which he claimed would add three trillion dollars in market cap to Microsoft (13m27s).
• Saylor walked through his pitch on Twitter and appeared on CNBC, stating that companies should start moving their treasuries to Bitcoin (13m29s).
• The pitch deck presented by Saylor starts with the statement that Microsoft cannot afford to miss the next technology wave, and Bitcoin represents the greatest digital transformation of the 21st century (14m33s).
• Saylor uses fear as a persuasion tactic, pointing out that Microsoft missed the mobile technology wave and is now investing heavily in AI to avoid missing the next generation (15m21s).
• The pitch deck highlights Microsoft's past successes and failures in various technology waves, including personal computing, the internet, and social media (16m4s).
• Saylor emphasizes that Microsoft defined the graphical user interface with Windows but almost missed the internet wave, and did miss the social media wave (16m10s).
• Microsoft has missed several technological advancements, including user interface, internet, social media, and mobile computing, but managed to save itself with Azure in cloud computing, which also led to its involvement in artificial intelligence through the OpenAI deal (16m46s).
• Microsoft's success in cloud computing and AI is crucial, as missing these opportunities would have put the company in a difficult position (17m14s).
• Bitcoin is considered the next significant technological wave, representing the greatest digital transformation of the century (17m28s).
• A list of the greatest companies and assets in the world, including gold, Nvidia, Apple, Microsoft, Amazon, Alphabet, Google, Bitcoin, Saudi Aramco, silver, and Meta, is presented to illustrate the significance of Bitcoin (17m47s).
• The list uses a persuasive technique called framing, which equates commodities like gold and silver with technology companies and corporations, despite them being very different things (18m17s).
• The list also includes the annual recurring revenue (ARR) or annual rate of return for Microsoft and Bitcoin, with Bitcoin's ARR being 62% (19m7s).
• However, this 62% ARR for Bitcoin may be misleading, as it is calculated from the start of Bitcoin's existence, and the actual ARR in recent years may be lower (19m33s).
• A more accurate comparison would be to calculate the ARR for both Microsoft and Bitcoin over the same time period, such as the last five years (19m44s).
• The presentation of Bitcoin's ARR is considered cheeky or even manipulative, as it uses a selective time frame to make Bitcoin's growth appear more impressive (20m17s).
• A presentation about Bitcoin is being analyzed, and it is noted that the presenter goes through the slides very quickly, not giving the audience enough time to read the information, which is a hypnosis technique called "going down the rabbit hole" (20m30s).
• This technique involves saying things quickly, using acronyms, and mixing truths or truisms with opinions to implant them as facts in the listener's mind (21m21s).
• The presenter claims that Bitcoin is the seventh-largest asset, but this is disputed as other assets like land, real estate, and commodities are not included in the comparison (22m25s).
• The claim that Bitcoin is the fastest-growing asset is also debatable, and it is argued that other assets or companies like Uber or Airbnb may be more popular or widely used (23m5s).
• The presenter's statements about Bitcoin being the most interesting, most digital, or most global asset are also questioned, with gold and silver being considered more global (23m36s).
• The analysis suggests that the presenter is using a persuasive technique to make Bitcoin seem more attractive by quickly presenting a series of statements, some of which may be true, but others that are questionable or misleading (23m51s).

The Digital Transformation through Bitcoin (24m1s)

• Bitcoin represents the greatest digital transformation of the 21st century, symbolizing digital capital, and the global wealth is distributed across assets that provide utility and others that preserve capital, but risk is destroying trillions of dollars of that capital every single year (24m1s).
• Assets like Bitcoin are considered to not go down or get destroyed, implying that it could never go down or get destroyed, and is not affected by factors like regulation, competition, war, crime, and catastrophe (24m31s).
• However, this is disputed as Bitcoin is correlated with the stock market and political activity, and is impacted by energy and other external factors (25m30s).
• Digital capital, in the form of Bitcoin, is considered economically and technically superior to physical capital, representing a revolutionary advance in capital preservation, and is growing from trillions to hundreds of trillions of dollars (26m3s).
• Bitcoin is secured by digital, political, and economic power, with 622 million crypto users, 400 million BTC holders, and $850 billion invested, making it a safe and secure asset (26m34s).
• The security of Bitcoin is attributed to its large network and high power consumption, making it "too big to fail" (27m3s).
• Michael Saylor claims that Bitcoin is the best asset to own, but this is disputed due to its correlation with the stock market, contradicting the claim that it is an uncorrelated asset (27m36s).
• The correlation between Bitcoin and the stock market is evident, as seen during the COVID-19 pandemic when there was a spike in cryptocurrency purchases, and the value of Bitcoin was affected by external factors (27m56s).
• The COVID-19 stimulus checks led to a surge in online betting, poker, and other activities, causing a boom that eventually came back down as the excess cash in the system was depleted (28m8s).
• Chamath's claim that Bitcoin is an uncorrelated asset has been proven false by history, as people tend to buy Bitcoin when they have excess money and feel speculative, and sell it when they have less money and need to pay for life expenses (28m23s).
• Bitcoin is considered the ultimate correlated asset because its value is heavily influenced by people's financial situations and market sentiment (28m37s).
• The network is too big to fail, and its size and resilience make it less vulnerable to compromise and failure (29m2s).
• The two biggest risk factors for Bitcoin are geopolitical issues, including taxation and regulation, and the potential for the network to be compromised through hacking or loss of support from server operators (29m19s).
• Many crypto projects struggle to maintain a network of servers and spend money on maintenance, which can lead to their downfall (29m38s).

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Bitcoin as an investment compared to traditional assets (30m47s)

• Bitcoin's performance is compared to Microsoft's, with Bitcoin showing a 62% annual return rate since August 2020, while Microsoft has an 18% return rate, but the comparison is questioned due to selective framing and the choice of time horizon (30m49s).
• The performance of Bitcoin and MicroStrategy is compared to the S&P 500, with Bitcoin showing a 48% return rate, while the S&P 500 has a lower return rate, but the comparison is again questioned due to the choice of time horizon (31m28s).
• The importance of time horizons is emphasized, and it is suggested that a more intellectually honest comparison would be to start the chart from the beginning of Bitcoin and Microsoft (32m12s).
• MicroStrategy's performance is compared to other major companies, including Nvidia, Tesla, Microsoft, and Amazon, with MicroStrategy showing a significant increase in value (32m51s).
• The idea of holding commodities, specifically Bitcoin, as a public company is discussed, with the suggestion that companies should not have anything on their balance sheet except Bitcoin (33m22s).
• Public, political, and Wall Street support for Bitcoin is increasing, with the president of the United States quoted as saying "never sell your Bitcoin" (33m35s).
• The concept of a "crypto Renaissance" is introduced, with the suggestion that companies have a choice to make between clinging to the past or embracing the future (33m55s).
• The idea of embracing the future is reframed as a choice between sticking to what has been successful in the past or following the crowd (34m34s).
• Microsoft's strategy is compared to the tulip mania, framing it with different words, and reversing the idea to show how easy it is to change the perspective (34m52s).
• Two pillars of traditional shareholder return, apart from share price appreciation, are BuyBacks and dividends, which are methods of repurchasing stock and dispersing cash to equity holders, respectively (35m10s).
• BuyBacks make each share worth more by constraining the overall float, while dividends provide income to equity holders, making them desirable for shareholders (35m19s).
• The view that Saylor has is that everything else is merely subsidiary or supportive to purchasing more Bitcoin, which is considered a relatively narrow approach (37m48s).
• Microsoft's options for using its cash include BuyBacks, dividends, Bitcoin, M&A (mergers and acquisitions), and R&D (research and development), with M&A and R&D creating new product lines such as Xbox and Azure (37m10s).
• Investing in people, including talent acquisition and professional development, is another option for using cash, which can be seen as a form of R&D or improving products and services (37m29s).
• Saylor's approach is considered narrow because it prioritizes purchasing Bitcoin over other options, such as M&A and R&D, which have created successful products and services for Microsoft (37m54s).

Michael Saylor’s take on Bitcoin's investment potential (38m1s)

• Michael Saylor suggests that investing in Bitcoin can help companies escape the cycle of slow growth, billions of dollars in investment, and amplified risks to shareholders by providing an asset without counterparty risk (38m19s).
• Saylor describes a hypothetical scenario where a $100 billion company growing faster than Microsoft can be acquired for one times revenue, but this is not the case with Microsoft's current revenue and growth rate (38m28s).
• Saylor appears to be describing Bitcoin as if it were a company, rather than a distributed, open-source project with no ownership or central authority (38m50s).
• Saylor's comparison of market cap with revenue is confusing, as revenue is typically not the same as the increase in value of an asset like Bitcoin (39m0s).
• MicroStrategy's accounting practices have been criticized for considering the increase in value of Bitcoin as revenue, and the decrease as a loss, which may not accurately reflect the nature of Bitcoin as a balance sheet asset (39m16s).
• Some of Saylor's statements are vague and difficult to verify or evaluate (39m34s).

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Asset-heavy vs. asset-light business models (41m19s)

• Microsoft evaluates its options every year, and a proposed model suggests converting cash flows, dividends, buybacks, and debt into Bitcoin, potentially adding hundreds of dollars to the stock price and creating trillions of dollars of Enterprise Value (41m20s).
• The model claims that Bitcoin decreases Microsoft's Enterprise Value at risk, as the company is currently levered to forward earnings expectations to an extremely unhealthy degree (42m13s).
• The proposal suggests that Microsoft's value is predicated on its earnings versus its assets, and that the company should convert its business to be more predicated on the ownership of commodities (42m30s).
• However, it is argued that having a price-earnings ratio is not a bad thing, and that Microsoft's value lies in its cash flows and business, not in owning commodities (42m41s).
• The proposal is compared to buying bonds, equity in other businesses, gold, or real estate, and it is questioned whether this is a risk or an asset-heavy versus asset-light organization (43m0s).
• The idea is that instead of giving dividends to shareholders, Microsoft would own Bitcoin and control it, but it is pointed out that shareholders could simply buy Bitcoin themselves (44m1s).
• The concept of a Bitcoin treasury company is explained, where the company securitizes Bitcoin to bridge traditional capital markets and the crypto economy (44m52s).
• The argument is made that people want other ways to access Bitcoin, and that a Bitcoin treasury company provides this access (45m15s).
• The discussion revolves around the idea of buying Bitcoin directly versus investing in MicroStrategy, a company led by Michael Saylor that invests heavily in Bitcoin, with the argument being made that buying directly is a more reasonable approach (45m22s).
• The point is raised that sophisticated investors, such as the CFO of Microsoft, have access to Bitcoin and Bitcoin ETFs through various platforms, including Schwab, Robinhood, Coinbase, Kraken, and Gemini (45m36s).
• The reason for the backlash against questioning MicroStrategy's approach is believed to be that it presents a valid counterargument to Saylor's strategy, with the suggestion being that buying Bitcoin directly is a more straightforward and cost-effective method (46m29s).
• The argument is made that by investing in MicroStrategy, investors are essentially giving Saylor more money to buy Bitcoin, which can drive up the price, rather than buying it directly and potentially limiting the upward pressure on the price (48m4s).
• It is suggested that Saylor's actions, such as publicly praising companies that buy Bitcoin, are intended to pressure other companies into doing the same, and that questioning his approach may be seen as limiting this pressure (47m40s).
• The idea is floated that some investors, referred to as "OGs," may be selling their Bitcoin holdings to Saylor, believing that the current price is a high water mark and that the price will come back down, allowing them to buy again and repeat the process (48m58s).
• Michael Saylor's strategy for MicroStrategy involves selling stock to buy more Bitcoin, capturing the arbitrage gain, and using debt backed by Bitcoin to purchase more Bitcoin, with the goal of quadrupling the investment over five years due to Bitcoin's appreciation (49m49s).
• Saylor's approach is based on the assumption that Bitcoin will continue to grow at a 60% rate, and if it does, the strategy could be successful, but if it doesn't, the risk is high (51m31s).
• The strategy also involves using Microsoft's dividends, cash flows, and buybacks to purchase Bitcoin, essentially turning the company into a vehicle for buying and holding Bitcoin (52m5s).
• This approach is seen as audacious and all-in, and some people might consider investing in MicroStrategy if they trust Saylor's vision and are willing to take on the risk (51m41s).
• However, others might prefer a more diversified approach, and there are concerns that the strategy is too focused on a single asset and ignores other aspects of business and life (52m30s).
• The Bitcoin market is expected to reach a turning point in the coming years, with a total of 21 million Bitcoins eventually being created, and currently around 900 being created per day (52m49s).
• MicroStrategy is buying a significant amount of Bitcoin daily, with some estimates suggesting over a billion dollars' worth, which is more than the number of new Bitcoins being mined daily, leaving a large portion to be sourced from existing coins (53m1s).
• A comment from Bradley Anderson from X questions why MicroStrategy's CEO, Michael Saylor, wasn't buying Bitcoin at a lower price point, such as $30,000, $40,000, or $50,000 (53m34s).
• It's possible that Saylor didn't have access to enough capital at the time or that there wasn't enough hype to facilitate the purchase of convertible notes (53m50s).
• As MicroStrategy's share price has risen, the company has gained access to more capital, creating an amplification effect that allows for larger purchases (53m56s).
• The situation is seen as a free market phenomenon, where people can choose to invest in MicroStrategy or buy Bitcoin directly (54m8s).
• The hosts of the show are long-term Bitcoin holders and are not accusing Saylor of fraud, but they do think the pitch is high-risk and that individuals should own their Bitcoin directly (54m58s).
• The hosts would like to hear the perspective of Amy Hood, Microsoft's CFO, on the situation, as she has been solid in her role and her opinion would be valuable (55m16s).
• The hosts also mention that they are not experts on Bitcoin, but they have been covering it since 2011 and have owned it since it was worth $10,000 (55m46s).
• They believe that Bitcoin is a good asset to have in a portfolio, but they also think that it needs more use cases beyond being a store of value and digital gold (56m25s).
• The main feature of a certain topic is mentioned, but it would have been more interesting if more could be built upon it, with other protocols like Solana and Ethereum being better at that, especially with the work of people like Bas from Coinbase (56m35s).
• Possible topics to discuss next include South Korean martial law, the Delaware court situation, or the ServiceTitan IPO price range (56m47s).
• The Delaware court situation involves Elon Musk and Tesla, with Musk having a long-term relationship with the company as its founder and having a relatively aggressive compensation package set up to be triggered by certain milestones as Tesla grew and appreciated in value (57m27s).
• This compensation package was the largest in corporate history, with Musk set to make more money as Tesla hit certain milestones (57m44s).

Tesla compensation package and Delaware court ruling (57m46s)

• A compensation package for Elon Musk was considered the best possible shareholder alignment, with no cash and options only available if the market cap and revenue hit certain numbers, aligning incentives perfectly (57m46s).
• The package was controversial due to its size, with some people thinking it was unobtained and stupid, while others like Bill Gurley and Jim Cramer thought it was the perfect award (57m53s).
• A lawsuit was filed by a Tesla shareholder who owned nine shares, claiming the compensation package wasn't fair and that Elon Musk was essentially negotiating with himself (59m33s).
• The judge initially agreed with the plaintiff, citing concerns of self-dealing, and despite Tesla putting the package to a shareholder vote again, the judge still rejected it, citing four fatal defects in their approach (1h0m13s).
• Elon Musk and Tesla lost the case and plan to appeal, which is expected to go to the Delaware Supreme Court (1h0m45s).
• Some argue that the shareholders have already voted in favor of the compensation package and that the courts should respect their decision (1h0m50s).
• The issue of stock-based compensation is not unique to Tesla, with companies like Uber, Microsoft, and Google also having large stock-based compensation packages (1h1m35s).
• The Delaware-Tesla fight has raised concerns about the predictability of corporate law, with some arguing that the current situation undermines the trust in the Delaware system (1h2m53s).
• The goal of corporate law is to be predictable, so people know the rules in entrepreneurship and capitalism, but the current situation is likened to changing the rules of a game after it has started (1h2m20s).
• The issue at hand is the use of stock-based compensation, which some shareholders disagree with, but the current system allows them to vote or buy shares in companies that do not have such compensation (1h1m54s).
• The problem is that Delaware, which is often chosen for its predictability and impartiality, is now seen as unpredictable, leading to a loss of trust in the system (1h2m50s).
• Some argue that startups and big companies should reincorporate in other states, such as Nevada or Texas, that are seen as more shareholder-friendly (1h3m7s).
• There is a need for a full investigation into the matter to determine if there is any bias in the judicial system, and the case may need to go to the Supreme Court for adjudication (1h3m18s).
• The current situation is seen as a threat to capitalism, and there is a need to resolve the issue to prevent further damage (1h3m45s).

Delaware Judicial System and Corporate Governance (1h3m56s)

• Elon Musk's lawsuit against Tesla is seen as an attempt to regulate the game, with some viewing it as a personal wealth issue, while others see it as a matter of how the game is regulated, with Musk being the richest person involved (1h3m56s).
• The lawsuit has been framed as an imbalanced presentation, with some arguing that the judge's ruling was a serious piece of legal work, despite disagreeing with the conclusion (1h4m31s).
• The judge's decision has been criticized for being politically motivated, but others argue that it is a genuine interpretation of the law and case law in Delaware (1h5m5s).
• The issue at hand is whether compensation committees and boards should be independent, with some arguing that they should be, while others see the judge's decision as an abrogation of norms that have held for a long time (1h5m35s).
• Elon Musk is currently using the legal system to his advantage, throwing "sand" and using Open AI's gears to further his interests (1h6m1s).
• Some argue that there is hypocrisy in the way the law is being used, with those on the Tesla side of the issue having previously used money and the legal system to kill certain media properties (1h6m11s).
• The case is likely to go to appeal and may result in Tesla paying Elon Musk, but some argue that the court's decision should be respected and that shareholders should make decisions, not the courts (1h6m25s).
• The issue has raised concerns about the potential for courts to "break capitalism" by allowing individuals with small stakes to influence major decisions (1h7m9s).
• Elon Musk's lawsuit against Open AI has also been mentioned, with some arguing that it is an example of Musk using the legal system to further his interests, including taking a non-profit and flipping it to a for-profit (1h7m24s).
• There's a discussion about Elon Musk's compensation package and a shareholder lawsuit against Tesla, with some people feeling that the shareholder is being ungrateful despite making a profit from their shares (1h7m47s).
• The issue is that the shareholder is suing the company despite the fact that they made a massive profit from their shares, and it's not clear what damages they're seeking (1h8m22s).
• The comparison is made to a hypothetical situation where a CEO like Satya Nadella receives a huge compensation package and the company's stock collapses, resulting in shareholders losing money, which would be a more understandable reason for a lawsuit (1h8m32s).
• Elon Musk is described as having risked everything to keep Tesla afloat, including going bankrupt and relying on loans from friends, and it's seen as unfair that a shareholder with a small stake in the company is suing him (1h9m2s).
• There's a sense of consensus among entrepreneurs, investors, and CNBC anchors that the lawsuit is unfair and that CEOs should be compensated in a way that aligns their success with the company's share price (1h9m45s).
• Bill Gurley is mentioned as someone who has been critical of the lawsuit and has experience with executive compensation, and it's suggested that he and other CEOs and investors are "tweaked" by the situation because it undermines the alignment between CEO success and share price (1h10m25s).
• The discussion touches on the idea that there should be a "reasonable person" standard for evaluating decisions, and that in this case, the shareholder's actions are not reasonable given the circumstances (1h10m55s).
• A recent court ruling in the Delaware-Tesla case has sparked controversy, with many in the business community viewing it as profoundly unfair, especially those in the capital allocation business, as it goes against how capitalism is supposed to work (1h12m10s).
• The case involves a lawsuit related to Elon Musk's compensation package at Tesla, with the judge ruling that the board of directors was not independent due to conflicts of interest (1h12m14s).
• However, it is argued that this is a normal part of corporate governance, as board members are often compensated by the company and have equity in it, aligning their interests with those of the shareholders (1h12m30s).
• The alignment of interests is not unique to this case, as board members are often selected and compensated by the company, creating a natural alignment of interests (1h13m6s).
• The ruling has been met with criticism, with some arguing that it is a bad ruling, but it is also acknowledged that the judge made a serious and reasonable legal argument (1h14m27s).
• The case is expected to be appealed to the Delaware Supreme Court, which will help set a precedent for how similar cases should be handled in the future (1h11m17s).
• The outcome of the case is still uncertain, but it is hoped that the process will play forward and ultimately lead to a resolution that is fair for all parties involved (1h14m48s).
• Paul Graham pointed out that if activist judges start overruling shareholders, everyone will leave Delaware (1h15m11s).
• Jason Lyin noted that the default choice of incorporating in Delaware is now upended, which is a significant change in business sentiment (1h15m36s).
• There is a growing concern among people in the technology world that the Delaware Court is biased, with some even creating memes to express their frustration (1h15m55s).
• The discussion highlights the importance of fair law and the need to change the law if it is wrong, rather than bashing judges who are trying to interpret it (1h17m53s).
• The conversation also touches on the topic of lawfare and the Trump cases, with some arguing that certain cases felt biased and were motivated by personal gain (1h16m30s).
• The importance of holding people accountable for their actions is emphasized, but it is also noted that some cases may be overzealous or motivated by personal gain (1h18m19s).
• The conversation mentions Laticia James and her efforts to hold Trump accountable, but also notes that some of her actions may have been motivated by personal gain (1h18m22s).
• The discussion concludes that the moral argument is strong in this case, but it is still important to follow the law and not shoot the messenger (1h17m29s).
• A person is tweeting the amount they owe every day, which creates the appearance of bias, similar to a situation where an Attorney General was tweeting the daily judgment amount against Trump, along with the fine and additional interest if not paid. (1h18m26s)
• The Attorney General's actions are compared to feeding into lawfare, and a reference is made to someone named Jack Smith, who is thought to have handled a situation in a straightforward manner. (1h18m53s)

Corporate incorporation trends (1h19m0s)

• Many companies are moving to Texas, Nevada, and other states for incorporation, with some choosing Delaware, as seen in the case of Tesla, which is currently in a fight with the state. (1h19m15s)
• The host is excited about a startup called the Browser Company, which is building a new product called Dia that combines AI agents, computer vision from Anthropic, and a new browser into one package. (1h20m16s)
• Dia is a next-generation technology product that has the host super excited, as it is the first time since ChatGPT came out that he has been this enthusiastic about a new technology. (1h20m28s)
• The Browser Company is also producing Arc, a browser that the host recently downloaded, and is now working on Dia, which aims to create an AI agent that follows users around and knows their personal context across devices. (1h20m43s)
• Dia's vision seems quite large, and the host believes that the company is taking a big bet to make something incredibly difficult, but the potential outcome could be significant. (1h21m22s)
• The Browser Company created an 11-minute faux recruiting video showcasing Dia and its capabilities, which can be found at d.browser.com. (1h21m37s)
• The host has added the Browser Company to the TWIST 500 list, which features top 1% private market companies, and has also added Vaton Systems, a Rhode Island-based company building underwater drones. (1h19m49s)
• Another company on the TWIST 500 list is Torrent, which is building specialized chips for AI and recently raised $693 million in funding. (1h19m53s)