E13: SPACsgiving Special! More promising vaccine news, innovation vs. regulation, reforming higher ed, morality of challenge trials & more

Follow the crew: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Referenced in the show: NYT Article - Politics, Science and the Remarkable Race for a Coronavirus Vaccine https://www.nytimes.com/2020/11/21/us/politics/coronavirus-vaccine.html Show Notes: 0:00 Besties congratulate Friedberg & Chamath for taking Metromile public, Chamath explains a PIPE, Sacks & Jason express their discontent for being left out of the first bestie SPAC 10:59 More positive vaccine news, NYT article on Operation Warp Speed: did the Trump administration nail it? 21:50 How will the COVID experience impact the response to the next pandemic? Morality of challenge trials, hypocrisy of regulatory capture around gambling, drug use, pharma, etc. 35:25 Why innovation has occurred so rapidly on the Internet: Permissionless innovation & lack of regulators, regulation vs. innovation 47:07 Thoughts on ISAs & how they could disrupt overpriced higher education, Dave Chappelle's contract with Comedy Central 59:58 Trump accepts defeat (sort of), Biden's cabinet selections so far 1:06:29 What the besties are thankful for 1:14:50 Peace in the Middle East being achieved by declining reliance on oil, based on resume alone - would Trump have won if not for his antics? 1:21:01 Code 13!

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Jason Calacanis?

  Hey everybody, welcome back. Besties are back and it's a Bestie SPACs Giving. Congratulations to the queen of quinoa. His second company, David Friedberg, announces today, hours before the taping of this special Thanksgiving pod, that he is taking Metro Mile public through a SPAC and that Bestie C,

• 0:26Jason Calacanis?

  and here is the quote, "As only Chamath can tweet, Buffett had GEICO. I picked Metro Mile."

• 0:36Jason Calacanis?

  I would just like to say-

• 0:38David Friedberg?

  That's how you move markets.

• 0:40Jason Calacanis?

  LeBron James has three rings.

• 0:45Jason Calacanis?

  Friedberg, tell us, what is Metro Mile? And-

• 0:49David Friedberg?

  Well, this isn't a self-promoting podcast, is it?

• 0:52Jason Calacanis?

  No, but I think it's just, you know, it's your second company.

• 0:55David Friedberg?

  I started the company in 2011 when I was running Climate when I was the CEO there. And, you know, Climate was offering insurance at the time. We learned a lot about the insurance markets and figured like, hey, you know, telematics or connecting cars to the internet is going to be a big deal and we're going to be able to completely change the auto insurance industry. So we set up this company. I was the chairman from the founding in 2011. And, you know, been chairman and I've been an active investor in the business in every round since then. So the business has built some, you know, really compelling value proposition for customers and, you know, it's got really good unit economics and it's,

• 1:37David Friedberg?

  you know, needed its last round of capital to get profitable. And it turns out, you know, as we were thinking about that this summer, that a SPAC was a really good path for the business, given the inflection point it's at.

• 1:49Jason Calacanis?

  And the basic premise of the business is, instead of paying for insurance by month or time period, the innovation here is you pay per mile.

• 1:58David Friedberg?

  Yeah, insurance today is like, you know, you fill out a form and you get a price for insurance and you pay that rate for six months of coverage. But, you know, depending on when you're driving and how much you're driving, you should be paying a different price, right? So we kind of changed the model to a rate per mile. And so if you don't drive, you save, you know, so the average customer doesn't drive a lot with Metro Mile. They save 47% over what they were paying with like GEICO or Progressive or insurance.

• 2:23Jason Calacanis?

  And you do that with that ODB port?

• 2:25David Friedberg?

  Yeah, the little plugin device. And increasingly, we're actually doing it directly by connecting to cars direct through Ford. And a couple of other big automotive OEMs now have this ability to send the data directly out of the car because they're all internet connected now. So that allows us to just basically, you know, see how many miles you're driving and the rate per mile is what we bill you each month times the number of miles you drove on your car.

• 2:47Jason Calacanis?

  And you didn't mention how you drive. I think that was a controversial concept for a while. You know, if you speed, if you weed. Is that on the roadmap?

• 2:58David Friedberg?

  Yeah, that is part of it today. But frankly, 70% of the price difference you get in auto insurance is from the number of miles you drive, and only 30% is really in this variance around behavior. You know, most people are generally pretty good drivers, so believe it or not. So the real variance in terms of, you know, your risk to the insurance companies is how many miles you drive. So that really is the predominant factor. So if we can accurately track that. Now, what's interesting is like in a world of autonomous cars where you're like turning on the car to be autonomous or fully self-driving at some point, you know, it's on and off, you should be getting a different rate for those miles, right? So if the car is, if your Tesla is on autopilot on the freeway, that should be safer than you on the freeway, you shouldn't be paying as much for insurance.

• 3:38Jason Calacanis?

  Ah, even better.

• 3:39David Friedberg?

  You can kind of think about how this moves into a world where everything is dynamically priced and dynamically billed.

• 3:43Jason Calacanis?

  Usage priced, yeah.

• 3:45David Friedberg?

  Usage priced, and also fair. So, you know, if you're a good driver and you're driving well, or if you're using autonomous features, you shouldn't pay as much. And ultimately, that translates, you know, into a truly kind of more dynamic service. And that's really where the world has to go because those low mileage drivers or those good drivers or those drivers using autonomous features should be paying considerably less. So they'll start using our service and that'll force the other guys to raise their rates and it creates this huge, you know, kind of market mode.

• 4:12Jason Calacanis?

  Great.

• 4:13David Friedberg?

  And we're in the very early days. I mean, it's like the first inning still. So, you know, we're just getting going.

• 4:20Jason Calacanis?

  Chumav, you chose to do a pipe with the SPAC. Explain to the audience what a pipe is for people who don't know and what you loved about Metro Mile.

• 4:28Chamath Palihapitiya?

  Sure. I think the, what is a pipe? A pipe is a private investment in a public enterprise. And basically what that means is that you're making the round bigger, right? So it's kind of like Sequoia does your Series A and invests 10 million. I would come in and put another 10 million and now your Series A is 20 million.

• 4:51Chamath Palihapitiya?

  Same terms as the, as Sequoia's round, except you're now just grossing up the amount of capital. Why, why is that helpful? Well, what it does is it allows somebody to price the deal. So in this case, David Spac's sponsor priced the deal, did the diligence and decided to underwrite Metro Mile at that price. And then they came to me and said, hey, you know, do you want to come and join this round essentially? And I got to know the business. A lot of things that David said basically are true. The, the thing that I will say is like, you know, everybody talks about the value of machine learning, right? And data oriented learning. The most obvious thing that you can do is if you learn on top of a huge subset of data,

• 5:36Chamath Palihapitiya?

  especially out in the real world, like driving data or any other kind of information is you should be taking risk on top of it. And this is why sort of these next generation insurance companies to me are so interesting because it's probably where you're going to see machine learning be used at just massive, massive scale. Cause you're just going to reprice risk and make it, as David said, much more dynamic. So anyways, they showed it to me. I, I really liked the, the product. The metrics are really amazing. And so I joined. It was great. I'm really excited for, I'm really excited for Friedberg.

• 6:10Jason Calacanis?

  Yeah. Congratulations.

• 6:11David Friedberg?

  Great. Chumav and I have never worked on anything together, so it's awesome. We're doing our first project here on the All In Podcast together.

• 6:18Jason Calacanis?

  All right, so Sax.

• 6:20David Sacks?

  It sounds like a brilliant idea and I'm just pissed I'm not part of it.

• 6:24Jason Calacanis?

  I know, I'm feeling it.

• 6:25David Sacks?

  I read, I read it like two besties.

• 6:28Jason Calacanis?

  For me and Sax?

• 6:29David Sacks?

  Yeah, Jason, do you know about this?

• 6:31Jason Calacanis?

  I don't know anything. I'm the last to know.

• 6:33David Sacks?

  You're both cut out of it. You're both cut out of it.

• 6:35Jason Calacanis?

  I need to get my beak wet.

• 6:37Chamath Palihapitiya?

  You two.

• 6:38David Sacks?

  We got the wet, our beaks.

• 6:40Jason Calacanis?

  I can't get my beak wet?

• 6:41Chamath Palihapitiya?

  You two narcissistic besties have been, have been running around all week touting every single unicorn you guys have been part of.

• 6:48David Friedberg?

  I miss my allocation and Robin Hood. I miss my allocation and Bird or Uber or whatever, yeah.

• 6:52Jason Calacanis?

  All right. New bestie rule, new bestie rule. Everybody gets a slice, even a little tasty poo. Everybody gets their beak wet.

• 6:59David Friedberg?

  Like the old neighborhood. Like the old neighborhood.

• 7:02Jason Calacanis?

  Just saying a little kickback, a little share.

• 7:04Chamath Palihapitiya?

  Let's, Jason, why don't you start an angel list syndicate for every All In Podcast listener?

• 7:09Jason Calacanis?

  Yes. All In Podcast Syndicate. It will be on thesyndicate.com. I left it on Angel List, but yeah.

• 7:14Chamath Palihapitiya?

  Okay, yeah.

• 7:15Jason Calacanis?

  We'll do it, we'll do thesyndicate.com slash All In Podcast and then we'll aggregate all these subscribers and I'll take a 20% carry and you guys can suggest ideas.

• 7:24Chamath Palihapitiya?

  Can I just say, we'll do, we'll do zero carry and we'll allow all the listeners to participate in our deals, which I think would be pretty cool. Listen, I've.

• 7:32Jason Calacanis?

  I love how every time you loop my business into this, whether it's podcasting or syndicates, you take out the money and the profit. I tell you what, I have an idea. How about we SPAC this week in startups and you do it for no participation?

• 7:45Chamath Palihapitiya?

  I'm the father of growth. You know how you grow by making things free?

• 7:50Chamath Palihapitiya?

  You want to maximize demand, just make it free. By the way, on this topic, Saxypoo had this incredible tweet this week, which was basically like, wow, this is like my 95th unicorn that went, that filed to go public. I mean, literally every single unicorn that filed this week to go public. Sax was an angel investor, which is incredible. Says I'm good ease as an investor. But the best follow-up tweet was Zach Weinberg, the co-founder of Flatiron Health, whose tweet was, I just want to congratulate myself on nothing for having not been a part of any of these companies.

• 8:25Jason Calacanis?

  I would like to congratulate myself for making no bets and taking no risk and getting no reward.

• 8:30Chamath Palihapitiya?

  No, I thought I thought Zach's tweet was the best.

• 8:32David Friedberg?

  Sax, don't you find it tiring, like all these investments that you've made, like, don't these guys call you and want to do meetings and chat all the time? I mean, you know, this has got to be like a huge amount of effort, right?

• 8:45David Sacks?

  Well, not, not, not, I mean, it not really.

• 8:48David Friedberg?

  You just put the money in and turn around?

• 8:50David Sacks?

  Well, you know, if you're not on the board, your obligation is basically to respond when somebody asks you for something. And as an angel investor, it is a little different when you're actually like leading around and you're a board member. Um, I was making, I was making these investments back in 2012, 2013. That's when these seeds were planted.

• 9:10David Friedberg?

  Right.

• 9:11Jason Calacanis?

  These were 50K, 100K, 250K checks, right? So the responsibility is proportional to the dollar amount.

• 9:18David Sacks?

  Some were a little bigger than that, actually, but um, I, um, I mean, I've written, I've written checks, you know, seven figure checks in some of these companies.

• 9:26David Friedberg?

  Well, Sax, according to your personal balance sheet that we got from your accountant this week.

• 9:30Jason Calacanis?

  Yeah, Phil Helmius sent it.

• 9:31David Friedberg?

  Yeah.

• 9:34Jason Calacanis?

  We see here a transaction for Howes. Is it true you did the series B of Howes, the entire series B?

• 9:40David Friedberg?

  A dollar forty three a share.

• 9:42David Sacks?

  No, no.

• 9:43Jason Calacanis?

  I heard it was you led the series B.

• 9:46David Sacks?

  No, no, NEA led that round. I mean, I invested a lot as an individual. I did co-lead um, the series B or C of Adipar. Um, that was one that I did as an individual.

• 9:59Jason Calacanis?

  That's incredible. Yeah, that's amazing.

• 10:01Chamath Palihapitiya?

  It's gonna be huge. I have no idea what that company is, but that sounds awesome.

• 10:04Jason Calacanis?

  They manage funds.

• 10:06David Sacks?

  They do portfolio management software. It's coming up on, you know, a hundred million.

• 10:13Chamath Palihapitiya?

  I'm just kidding. I'm totally kidding. I'm totally kidding. Uh, let's start the pod, J Cal. Where are we gonna start?

• 10:18Jason Calacanis?

  Well, I mean, I think.

• 10:20David Friedberg?

  Now that we've all self-promoted.

• 10:22Chamath Palihapitiya?

  Exactly.

• 10:22David Sacks?

  Well, I'm, I'm just happy to hear that, that Jason was cut out of your deal as much as me. And I, when, when I read about it on Twitter, I'm like, I better not be the only best to cut out of this thing.

• 10:37Jason Calacanis?

  You're right. You're right. You're right. It is. It is getting awkward now because people who watch this podcast assume that we do everything together. Like literally, they're like, well, you guys go grocery shopping together. You go on vacation together. You guys all live in the same TikTok house. Yeah, it's that's not how it works. I think the first thing we should we should talk about is just this amazing moment in time when because of science, you know, and this podcast started during the pandemic, we have had, as predicted by Friedberg, who gets to take two victory laps. He said by the end of the

• 11:17Jason Calacanis?

  year, we'd have vaccines and they would have because of this mRNA, if I remember correctly, 90, 95% efficacy. And sure enough, the week after Trump wins, I'm sorry, loses, sorry, Sax, he lost, actually, the week after Trump lost, I know you didn't vote for him, the week after he lost Moderna, Pfizer, then the next week, Moderna, and then the next week, Oxford. And I understand Johnson and Johnson is about to announce something. And all of these have 90 to 95% efficacy, and that there are going to be 40, 50, and 60 million doses in December, January, and February, just from the first two in America alone.

• 12:00Jason Calacanis?

  So Friedberg, if you were to put a number on when herd immunity hits, because probably 20 or 30% of people have had it, 20, 30% of people have some natural immunity, how long is this going to take? And could we be at a be doing this from, you know, a Warriors game next year? When are we going to be able to do this in person?

• 12:21David Friedberg?

  I think I don't know if it was, yeah, I don't know if it was Fauci or someone that's closer to the operation shared that they do think they can get 70% of Americans immunized by May. So, um, my May, yeah. So, you know, if you'll remember a few podcasts ago, I think I tried to explain a big part of the budget that went into this Operation Warp Speed was to parallelize production of these vaccines while they were being tested. And so we've been scaling up the production and the manufacturing of these. And if they weren't going to work, we're just going to crash them, right? A couple billion dollars. Who cares? It's a good option for the American people. So we've got a ton of doses that have been produced. It's about packaging and distribution now. And that's, you know, supposed to be kind of underway with the plan to be that

• 13:02David Friedberg?

  on December 11th or 12th, when they give the emergency use authorization, these doses start showing up in care facilities.

• 13:09Jason Calacanis?

  We went all in. We basically went all in blind. Like, we just shoved the chips in and said, "We're going to make these vaccines even if they're not..."

• 13:15David Friedberg?

  It's more like a spray and pray, um, angel investment portfolio. You know, we bought a bunch, we bought like four different things or five different things. We made bets in all of them and hoped that one of them pays off. And it turns out, they're all going to pay off. So, you know, or a chunk of them are going to pay off. And we get to have them ready, you know, in time to kind of make a difference here. Now, all that being said, if you look at the case numbers in the US right now, we could be as high as 30% of the American people have already been infected with coronavirus, based on some estimates. So as of the June 30th, um, paper that was published from those dialysis patients, and they did a pretty good statistical interpretation of looking

• 13:55David Friedberg?

  at antibodies in people's blood, they estimate 10% of the American population was infected by coronavirus as of June 30th. And then if you look at the number of people that have been infected since then, and you apply the similar sort of multiple that you would assume based on tests, you know, there's an estimate that we could already be up to 30% of the US population has been infected.

• 14:14Jason Calacanis?

  Wow. And therefore immune?

• 14:17David Friedberg?

  And theoretically, mostly immune. Let's just say that, right? And so sure, there's anecdotes and so on, but yeah, let's just say generally, yes, immune. And so you combine that with these vaccines starting to roll out, and we get, you know, a pretty kind of comfortable position in terms of the pandemic and hopefully a couple of months here. And that's why the market's going nuts and that's why everyone, I mean, I don't know about you guys, but I got some conference invites this last week for conferences for next year that had been canceled this year and were being put on hold.

• 14:43Jason Calacanis?

  Really?

• 14:44David Friedberg?

  Yeah, so.

• 14:45Jason Calacanis?

  Oh, wow.

• 14:46David Friedberg?

  People are starting to lean on this.

• 14:47Jason Calacanis?

  For what timeframe, third quarter or fourth quarter?

• 14:48David Friedberg?

  Uh, summer, July.

• 14:49Jason Calacanis?

  Yeah, so people are now assuming that and they're booking hotel spaces based on it. That is extraordinary. Sax, you shared this New York Times story, why don't you summarize it for the audience? And I'd love to get your thoughts in addition to this as to what this recovery might look like if in fact, we have more vaccine than we need and even, you know, a reasonable number of Americans take it and don't believe that it's a conspiracy theory by Bill Gates to control and the Illuminati and all that stuff.

• 15:22David Sacks?

  Yeah, I mean, this New York Times story is pretty remarkable. It's called "Politics, Science, and the Remarkable Race for a Coronavirus Vaccine." This came out, I think it just came out today in the New York Times. Actually, sorry, it's published, it published November 21st, updated November 24th. And it's pretty remarkable. It describes the effort by Operation Warp Speed by the administration, by Pfizer, by Moderna, kind of gives you the behind the scenes play by play. And reading the article, you have to come away thinking that the Trump administration did a pretty good job with this whole Warp Speed project. I don't know if the New York Times realizes that it's making the Trump administration

• 16:04David Sacks?

  look so good, or maybe they don't care anymore because he's, he's lost the election, but the article does make the administration look very good.

• 16:13Jason Calacanis?

  Competent.

• 16:14David Sacks?

  I mean, very competent. First of all, they shoveled money to the right people. They, you know, they offered Pfizer money, Pfizer didn't want it or need it, but Moderna did, so they got a few billion dollars from Moderna. They parallel processed a bunch of different attempts here so that if one company failed, the others might succeed. There was a sort of a Reaganite cutting of bureaucratic red tape wherever they could. There were examples in the story of the drug company needing something, some supplies or what have you, and they would call the administration and they would, you know, make it happen. And then finally, the administration didn't do anything to... To kind of mess with the science, you know.

• 16:54David Sacks?

  In fact, they describe how this the this new experimental mRNA technique that they used to generate the vaccine, they had the code for that within two days. They actually had the vaccine sort of printed, if you will, within weeks. And really, what took all this time were the human trials, you know, the three-stage human trials, which the administration did not do anything to speed up. And probably the irony of ironies, the supreme irony, is there's a story, there's a there's a bit in the story, it actually begins with the this guy Sloughy, who's the head of the Trump administration's effort to produce the vaccine. He actually slowed down the Moderna human trials by about three weeks because they

• 17:38David Sacks?

  weren't including enough minorities in the, you know, in the in the trial. And that cost them three weeks. If it weren't for those three weeks, Moderna's vaccine would have happened before Pfizer, and it would have come out about a week before the election. So you got to wonder, like, Trump has got to be pulling out his hair about

• 17:58Chamath Palihapitiya?

  What hair?

• 17:59David Sacks?

  About about about this twist of fate.

• 18:01Chamath Palihapitiya?

  David, how does it attribute credit for Warp Speed? And I'm going someplace with this, so I'm just asking you the question.

• 18:08David Sacks?

  Well, I don't, the article's not trying to attribute credit. They're just kind of describing the behind the scenes of of how Pfizer, Moderna came up with their vaccines. And it just, but but in in describing, you know, Pfizer, Moderna did the work of creating the vaccine, but in describing the ways that Warp Speed contributed, they did things that were only helpful and nothing that was harmful. And so in that sense, it made the Trump administration look quite good.

• 18:33Chamath Palihapitiya?

  Yeah, I think the point is that the Warp Speed folks, which is probably the least well-known working group working on coronavirus to the rest of the public, is because it was a lot of wonky insiders. It was sign of almost proving the exact opposite of what Trump typically does, which is, you know, some idiotic nepotistic leaning, where it's his daughter or it's his son-in-law running around, you know, completely and effectively, you know, doing something.

• 19:01Jason Calacanis?

  Where they become sort of front and center for taking credit. Um, in this case, it was just a bunch of policy walks. You never heard about the project. We only know about warp speed because a handful of us have talked about it. Um, and it turns out to actually have been good because they knew what they were doing and they do enough to to not try to seek the credit and just got out of the way. I mean, it proves almost the antithesis of how the Trump campaign, you know, managed their time in the White House.

• 19:24David Sacks?

  Well, I mean, I, you have a point where, you know, I was kind of reading this article, wondering, you know, where was Jared Kushner? Because if Kushner knew about this, there's no way he slows down the Moderna vaccine by three weeks. Um, I mean, that might have made the difference right there and whether Trump wins or not. Can you imagine the effect on the election if the vaccine had come out one week before November 3rd?

• 19:45Jason Calacanis?

  I think Trump would have won decidedly if he had a vaccine or two out with 90%, but I think he had no credibility. Even though Moderna and Pfizer were saying late November, and he said the vaccines are around the corner. His whole tenure was based on so much lying. He was the boy who cried wolf. He was the president who cried wolf by the time he told the truth. And he was telling the truth about the vaccines. He, it was like, oh my Lord, he, he told the truth in the final three months.

• 20:17Chamath Palihapitiya?

  Well, can I give you the opposite, David, of that, which is that if Moderna basically says, hey, guys, we have a vaccine that works for white people. And a disease that's, you know, disproportionately killing blacks and, you know, Hispanics and brown people, uh, Native Americans, um, and all of a sudden people are like, wait, what the fuck? Maybe they would have gone into Georgia and they would have just crushed them even more. And then you would have actually had the Senate flip too. So you could have had a whole kind of distribution of outcomes there in a different case, because you could have had an angry reaction as well. We don't, we don't know. I guess is my.

• 20:51David Sacks?

  Well, yeah, I mean, I, I think it's ironic that an administration that was constantly accused of white supremacy probably lost the election because they slowed down this vaccine trial group to include more minorities.

• 21:07Chamath Palihapitiya?

  No, I know, but I think what we're saying is it wasn't the actual administration. It was somebody that actually knows what they were doing.

• 21:14Jason Calacanis?

  We call that redemption. In the movie, when the person actually loses because they did the right thing, it's kind of redemption. Friedberg, when you look at these mRNA vaccines, you were educating us about them last night. And also for a long time.

• 21:31Jason Calacanis?

  Tell the audience just one more time how these work briefly and what the potential for them is in the future because I think a lot of us now are starting to see the light at the end of the tunnel. This is going to be over, we're going to be at conferences or going traveling to Europe or whatever it is next summer. But we are all going to be scarred for life thinking, you know, when is the next coronavirus? Just like for a decade, we were on pins and needles, when is the next 9/11? So this is going to be scar tissue for a generation or two of people. When the next COVID comes, how quickly will Warp Speed 2.0 go?

• 22:09David Friedberg?

  Yeah, it's the right question because our approach to doing vaccines may have just changed permanently. So, you know, every cell has your DNA and DNA basically codes proteins. Every three letters of DNA makes an amino acid, codes for a specific amino acid, there's 20 amino acids. The way that DNA turns into proteins is through RNA. So RNA is kind of like a mirror copy of your DNA. It floats into these things called ribosomes in your cells and outcome proteins. And it's like a printer, right? And so those ribosomes make your proteins using those amino acid sequences coded by the RNA. So the way that the vaccines work historically is you'll get a dead virus, which is basically

• 22:54David Friedberg?

  the protein of a virus. Your immune system then learns to kill that protein. Oh, man. Jesus, my dog. Your immune system then learns to remove that protein from your body. And that's how you develop this memory, your immune memory to a specific protein. And so they put this dead vaccine virus in your body and hopefully your immune system learns a good response to it. mRNA basically puts the RNA in your body that codes for that protein. Your cells then make that protein and because it's making a lot more of the protein in a more consistent, you know, way, theoretically, the idea is your body develops a much more robust immune memory and immune response without it overloading your system where

• 23:36David Friedberg?

  all the immune cells try and wipe that protein out right away and so on. The challenge is you're putting RNA in your body. And we've always been worried about, we don't know what the side effects of mixing RNA in your body would be. Is it going to change your DNA? Is it going to change your genetic makeup? Is it going to cause other deleterious side effects? So this technology, this capability, this knowledge has been around forever. I mean, not forever, but for, you know, a long time. And the idea has always been we could use RNA in this way. But, you know, no one wanted, and we've used it in animals and we've used it in plants. And we've seen the capabilities of, of using RNA to do different things like this. But, um, this is a big leap. And so, uh, you know, we, we kind of leapt forward here of getting to the point that we felt comfortable with, you know, RNA as a, as a treatment like this and it's, um, it's working. So in theory, in the future, as Sacks points out, you could take any virus or any bacteria.

• 24:20David Friedberg?

  You could read its DNA, you could do that in an hour. Then you could take chunks of that DNA and code RNA for it so that your body makes those proteins that theoretically produce an immune response. So that, that's the, that's the science of like, how do you, how do you create a new vaccine?

• 24:33David Sacks?

  I think that's the amazing part is the way it's described, you know, in this article is that's almost like laser printing or 3D printing a vaccine. It's kind of like the equivalent of that. You just take the genome of the virus and, you know, boom, you've got the vaccine. And then all the other delay is about human trials and testing of it. But imagine if that there, there was the next coronavirus is 10 times as deadly. You know, something that's as, spreads as contagiously as smallpox and is, you know, as deadly as Ebola or something like that. We could have a vaccine the next day, you know, like you could, we could have it very, very quickly.

• 25:12Jason Calacanis?

  Challenge, David, would be as we'd have it the next day, like we did here. But we would be going through this three-phase trial. And so I want to take a moment here and talk to Chamath about something, which is challenge trials. Um, in the UK, they will start doing challenge trials for those people who don't know what a challenge trial is. Essentially they expose you to something dangerous, i.e. a virus like COVID. And then, uh, they give you the, uh, vaccine and then they give you, uh, the virus. As opposed to how we do a three-phase trial, which is you give the, the vaccine to 30,000 people and, uh, and, um, placebo to 30,000 and then you come back three months later and see how many people got infected. And it takes time and money, whereas challenge trials. Only take risk on the individuals who are part of it.

• 25:57Jason Calacanis?

  Chamath, hundreds of people in the science community signed a letter. And in the UK, they're going to be doing the first challenge trials in January. The United States is not doing these. I'm certain China is. Do you think it's a moment in time where we need to think about the ethics and morality of challenge trials specifically? And then if so, how do you execute them with that? How do you execute a challenge trial without it being unfair? Or too dangerous for people? Obviously, you're not going to just go into a prison and say, hey, anybody want to get 10 years off the sentence? Join the challenge trial. That seems morally bankrupt. But we let people climb mountains without ropes, so.

• 26:35Chamath Palihapitiya?

  Right. Well, I think this speaks to a whole bunch of other issues that we've talked about on the pod before. You know, another example of this was section 230 before when we talked about it. We had a body of law that was created at a moment of time that essentially was about framing and understanding a specific pathway and a way to use technologies that today look archaic. And we have to rewrite the laws in order to just compensate and understand for where we are. So if I, if you double click on trials as an example, you know, if you have a solution for a rare disease, you can go in a specific pathway with the FDA and get breakthrough and fast track approval. But if you, for example, have, you know, a novel immunotherapy cancer drug, you probably,

• 27:19Chamath Palihapitiya?

  you cannot, you know, you have to do a multi-phase trial, a typical three-phase trial. You have to solve for very typical things like fatigue, et cetera, et cetera. All these things slow progress down. Now, in a world where we were somewhat flying blind 40 or 50 years ago, we didn't have, you know, things like CRISPR, we didn't have, you know, a real understanding of the genome. We didn't have delivery mechanisms like CAR-T. You would say, okay, yeah, we should be really, really careful. But I would say that the more you know, the more you can ease up on the rules because you can actually empower people with a lot of information. And it shouldn't take a disaster scenario for us to be iterative and experimental.

• 28:03Chamath Palihapitiya?

  So I think the challenge trial is really important. I think the concept of them make a lot of sense. I think a lot of governments should employ incentives to figure out who is eligible and why. But if you're a healthy adult, male or female, and you want to participate in a trial for whatever set of reasons, you should be allowed to do so. And companies that want to run those trials should be allowed to run them. Similarly, if you want to find a complementary pathway through regulatory agencies to get drugs to the starting line, you should be able to do those too. And I think what we have to do is multipath these compounds going forward because I think that's where you accelerate all these technologies' ability to actually solve these diseases.

• 28:47Jason Calacanis?

  Friedberg, why is it so controversial that a rocket ship company, or, you know, people who want to climb on mountains without ropes, or a rocket ship company, like there are experimental pilots, we have astronauts, they take unbelievable risk. We send thousands of troops into harm's way for many different reasons, many of which sadly die. And they volunteer for those activities. Those people are volunteering and compensated. But when we look at science, and we look at a challenge trial, scientists say this is morally reprehensible to compensate somebody for taking risk, when that's exactly what we do in the army, we do it with police

• 29:30Jason Calacanis?

  officers, and we do it with astronauts. Help us understand how scientists think so differently than, say, war.

• 29:37David Friedberg?

  I don't know if it's scientists as much as it is, you know, regulatory framework like the...

• 29:44David Friedberg?

  Some people would call it a nanny state and you know, there are things that the nanny state assumes individuals don't have the capacity to understand the extent of the potential loss or the or the nature of the risk. This is true for angel investing, right? You have to be a qualified investor to invest in a private company without appropriate disclosures. And it's true in a lot of other contexts. So, you know, to to give people the authority to make decisions like this, it seems like my I'm I have no point of view that I'm kind of making here, but it seems like the the government assumes or the elected officials assume or the populace assumes that there are things that people aren't really equipped to make decisions on because they can't understand the risk because they're not qualified.

• 30:28David Friedberg?

  And that and they get excluded from those activities. But Sacks is the

• 30:31Chamath Palihapitiya?

  Yeah, Sacks, how should we reframe this?

• 30:34David Friedberg?

  Yeah.

• 30:35David Sacks?

  Well, I think

• 30:36Chamath Palihapitiya?

  Or how should we frame it?

• 30:37David Sacks?

  I think assumption of risk is is a is a really good principle and it is a way for people to engage in potentially harmful behaviors. Just because a behavior is is potentially harmful doesn't mean you don't get to do it. In the United States, you're allowed to do things that are manifestly harmful to yourself, like smoking, you know?

• 30:58Chamath Palihapitiya?

  Even worse, if you're in Oregon, you can now do all kinds of hard drugs. I mean, you can assume that risk for yourself. So, you know, if if in Portland, Oregon, you can now take heroin openly in the street with no consequence, but you can't participate in a trial that could basically cure a cancer, that's insane to me.

• 31:17David Friedberg?

  I'll tell you

• 31:18Chamath Palihapitiya?

  We've lost the script.

• 31:19David Friedberg?

  Yeah, I'll tell you, I'll tell you the flip side of it. You're allowed in Nevada to play roulette. I mean, what the fuck? Like, you know, it's got a negative expected value statistically, factually for individuals, but the individual doesn't have the capacity, generally speaking, that's playing roulette to recognize that every dollar they're spending at the roulette table is likely going to be, you know, taken away from them. Like, there's some percentage of that that's going to be taken away. There's a 5% edge for the house on that on that game. And and so we make the argument in some cases that people don't have the capacity to understand risk, but in other cases, it's okay for them to not have the capacity to To to take risk. And I think that there is this notion of what some people call regulatory capture that probably encompasses both of these, which is that there is some degree of profiteering

• 32:02David Friedberg?

  that has created some set of laws that kind of manifestly capture that system in a certain way. So there are profitable casino enterprises that say, let's get people to spend their money in a risky way that they don't understand. And that becomes the law. And then people in Nevada are allowed to do that. There are also pharmaceutical companies that will say, we need to have huge regulatory burdens. So once we make that big investment and we get patent approval and we can lock in that drug, we can charge a lot of money for it. So I would argue to some extent that the regulatory capture associated with the profiteering that happens on the back end in pharmaceuticals has in large part driven the structure around risk taking in in drug trials, particularly in the US. I mean, you can go get whatever drug you want over the counter

• 32:45David Friedberg?

  in Mexico, right? I mean, we have a very different system. It's also happens to be the most expensive in the world. And the rationale is, well, you're the most protected, right?

• 32:54Chamath Palihapitiya?

  Well, the drug infrastructure here has created, to your point, because of regulation, the entire, you know, CRO industry, which is a multi multi billion dollar industry, which basically is essentially a retardant of R and D velocity, right? Its entire job is to slow things down, create these double blinded studies. By the way, and so many of these studies are not even double blinded, they're not even actually scientifically rigorous, they get basically blown apart after the fact. So what are they really in the business of doing? It's because they're they're exploiting a business model that was created by laws, laws that were written by regulators, regulators that were in the hands of lobbyists. None of those folks truly understood

• 33:34Chamath Palihapitiya?

  at the time, but especially today, what's really possible. So, you know, it does not make sense in the United States of America, just writ large, simply put, that you can buy alcohol and drink yourself into the ground, buy cigarettes and smoke yourself to death, you know,

• 33:50David Friedberg?

  gamble away your money.

• 33:52Chamath Palihapitiya?

  gamble away your money where you're negative EV, or open, you know, openly do illicit drugs, but you can't participate in a thoughtful trial backed by scientific research.

• 34:03Jason Calacanis?

  In fairness, Jamar, you can get away with smoking fentanyl in San Francisco and Oregon, but it is illegal to use that plastic straw. So be careful, folks. The laws are very clear here. That plastic straw is going to get you in a lot of trouble. I don't know what the fine is. But it is

• 34:23Chamath Palihapitiya?

  I mean, it wouldn't be so crazy if it were true, but to your point, like you would actually get arrested for having a plastic bag than you wilt for having fentanyl in San Francisco.

• 34:33Jason Calacanis?

  Absolutely. They'll arrest you for the bag that the fentanyl is in, but Chesa Boudin will not arrest you for the fentanyl in the plastic bag. Sacks, we've totally lost the script, but Chamath sort of bridged this with the 230 discussion of common carrier and hey, you know, we had great intent with this law, but nobody saw social networks becoming this dominant addictive, etc. So we need to be more nimble as a government in changing these regulations, whether it's straws, fentanyl, challenge trials, or 230. You wrote a blog post about it. After we had our 230 discussion, a lot of people started talking about it. Have you come to some conclusion as to an exit ramp for 230 or a way to maintain it

• 35:17Jason Calacanis?

  without, you know, throwing the baby with the bathwater?

• 35:20David Sacks?

  Yeah, yeah. Well, okay, just can I make one concluding thought on

• 35:24Jason Calacanis?

  Sure, of course.

• 35:24David Sacks?

  So the reason why innovation has happened so fast on the internet is because of, you know, one word, permissionless, right? Permissionless innovation. Nobody who has an idea for a startup needs to go get permission from someone in the government, you know, repeatedly. That's really what makes a difference. You know, Mark Zuckerberg, as a, you know, sophomore in college can just build his project. Larry and Sergey as PhD students can just build their project, ship it, start, you know, getting users, and they don't have to get the permission of a regulator, whose incentive, by the way, is just typically not to get fired by approving something that might rebound on them in some, you know, in some bad way.

• 36:03Jason Calacanis?

  And to keep their job, yeah.

• 36:05David Sacks?

  Keep their job. I mean, imagine if, you know, imagine, just to take it like a random example, when Elon launched Starman, remember where he put the?

• 36:13David Sacks?

  Like he he launched the Tesla into space and there's like a astronaut in there and it was like this kind of really cool moment. I assume he just did it. I assume he didn't get permission from anybody to do it, but could a moment like that have really happened if he did have to get permission? No way it'd be like making its way through the chain. No one would know what to think of it. No one would know whether they could be the one to approve it. And then what if something goes wrong? What if the Tesla comes back down to earth and you know, turns into a meteor or whatever? Those are the scenarios that'd be running through their heads. Nobody would have allowed it, right? And so when you just let entrepreneurs do things like good things happen, right? And and that's why we've had so much progress on the internet and in so many of these other areas, we've had much less progress because

• 36:59David Sacks?

  you know, what what a system like that selects for is your ability to go lobby regulators as opposed to just building your project and shipping it.

• 37:07Chamath Palihapitiya?

  I think that um, one of the things that maybe happens is that, you know, we we were all expecting, or maybe some of us, I have definitely some version of a new deal and some grand bargain. And I wonder maybe whether the new deal and our sort of like our version of FDR over the next, I don't know, 10 years is the person that actually says, guys, we're going to have a wholesale rewrite of the regulatory infrastructure to account for technology. Just period. We're going to start someplace reasonable and small and we're going to make common sense reforms, just observing the times as they exist today. Right? And we're going to go and systematically try to make these industries a little bit more resilient, a little bit more entrepreneurial, you know, a little bit

• 37:51Chamath Palihapitiya?

  less corrupted by regulatory capture and lobbyists and laws that just don't make sense 100 years later.

• 37:58David Sacks?

  The I mean, it'd be great if we could do that. The reason we can't is because how do you reform the law without the lobbyists getting their fingers in it? Right? And and the problem is there there's no there's no lobbyist for the company that doesn't exist yet, right? For the founder, for the entrepreneur who's got an idea in their head, but they haven't built their company yet. There's nobody representing that person in Washington, right? And what happens is you get new regulations in Washington, some agency gets created, they reach out and touch an industry. But now every player that's affected has to create their own lobbying, you know, organization.

• 38:34Chamath Palihapitiya?

  Not true. And David, what do you think about this? What if the advocate for the entrepreneur or the uncreated company and uncreated product is really the same as just individual civil liberties and rights? How are they really that different? Because really what it's doing is saying the entrenched organizational infrastructure that runs my life gets deconstructed and then power gets pushed down to me, the individual. That's tantamount to the same thing, I think.

• 39:02Jason Calacanis?

  Well, we have seen some pushback. Well, I mean, there is some silver lining here. If you look right now, the citizens of California, obviously, people have been fleeing and we've been talking about California and the one-party system here causing so many problems. But we did have Prop 22 pass and we now have 900,000 people have signed to recall Governor Newsom. And these seem to be some pushback against this sort of nanny state where people can't make decisions. And then additionally, today, the SEC announced that they will allow gig working companies

• 39:45Jason Calacanis?

  to give stock to employees as part of their compensation, up to 15% of their compensation, in fact. Hester, how do you pronounce her last name? It's not Pierce.

• 40:00Chamath Palihapitiya?

  You can't pronounce the word Pierce?

• 40:02Jason Calacanis?

  Pierce, Pierce, Pierce. No, it's spelled Pierce. But Hester Pierce is worth following on the Twitter, H-E-S-T-E-R-P-E-I-R-C-E. Hester Pierce, I had her on my podcast, This Week in Startups, and she, they're really getting aggressive in changing the accreditation law. So anybody's going to be able to be an accredited investor, you just become sophisticated through a testing mechanism. And now they want to let gig workers get

• 40:25Chamath Palihapitiya?

  But by the way, sorry, here's a perfect example of a regulatory body and infrastructure that actually has changed with the times. I think the SEC, in fact, I think we maybe we talked about this a little bit the last time. I actually think one of the best Trump appointees has been Jay Clayton. And I actually think Jay Clayton has done an incredibly good job. And a lot of what he's done is just deconstruct this kind of nanny state and say, people can become educated and make good decisions for themselves. And because it's in some, it's in an area that's relatively benign, i.e. investing, people kind of just let it happen without a lot of pushback. And everybody kind of generally supports it. Democrats support it, Republicans support it. And the outcomes are really good, to

• 41:08Chamath Palihapitiya?

  your point, Jason, which is, in a world of zero rates, how do you expect any, just, you know, average, ordinary, middle American who just works a decent job to save for their retirement, to actually make enough money? Well, they're going to have to get educated, and they're going to have to find a way of putting their money to work in, in assets that have a better return, which literally was illegal up until very recently. And so you were systematically letting the rich stay rich.

• 41:34Jason Calacanis?

  And you were blocking the poor from having an opportunity to advance. Like, what if Apple Store employees could get their paycheck and say, I want to take my paycheck, 70% cash, 30%, you know, restricted stock units at this discount. Like, we could let Apple Store employees make, you know, a million dollars after five or 10 years of working there, 10, 20 years from now, and have generational wealth change. David Sacks, you had comment.

• 41:59David Sacks?

  Well, I was gonna ask you, Moth, do you think this type of deregulation is gonna happen in the Biden administration? Because what you're discussing is like a very, really kind of classical Republican Reaganite idea, right?

• 42:12Chamath Palihapitiya?

  I agree. And I think what's gonna happen is, I think you're gonna continue to see deregulation in areas that are benign and non-controversial. So I think the SEC, the FCC, I think all of these places, you'll see movement. I think you'll probably actually see a lot more choice. And deregulation effectively in Medicare and CMMI. I think those places will move first. And then I think it'll be up to some leader politician to then really rally the troops on some higher order bits. And one of the biggest higher order bits would be sort of around the broader healthcare infrastructure,

• 42:58Chamath Palihapitiya?

  social security.

• 43:00Jason Calacanis?

  Education.

• 43:01Chamath Palihapitiya?

  Education. Education is probably the biggest one. That's like the, it's just too sacrosanct for the Democrats. You cannot get elected without the teachers. And so unless there is a startup that completely disrupts teacher pay and teacher compensation, then the public school teachers unions will continue to dominate a lot of the federal and state policy. For the worse, unfortunately.

• 43:26Jason Calacanis?

  Friedberg, if you had one regulation or series of regulations or regulatory body, you would most like to see change for the good of humanity and, you know, Americans and the rest of the humans on the planet, what would it be?

• 43:43David Friedberg?

  Probably help.

• 43:46David Friedberg?

  Yeah, it's probably the drug process, the drug development process. You know, there was a

• 43:51David Friedberg?

  a gene editing

• 43:54David Friedberg?

  program that ran and someone died. So what year was this? Ninety seven, ninety nine? And they basically halted all gene editing programs for 13 years. You know how many people died during that time? It was fucking, it's a crazy, crazy fact. Where, you know, the, you know, the one death is too many rule. You know, basically doesn't take into account the kind of broader implications on the downside. So, yeah, I think that one's probably pretty important. But, you know, there's a good interview. If you want to hear some interesting thoughts and I'm

• 44:35David Friedberg?

  Again, not trying to be an advocate for any political point of view, but Charles Koch goes on Tim Ferriss. Have you guys heard this podcast interview?

• 44:43Chamath Palihapitiya?

  I've listened to it, yeah.

• 44:44David Friedberg?

  Yeah, and he highlights a couple of really good examples about this regulatory capture problem. Like, if you're poor and you want to become a hairdresser and, you know, start a salon or go work in a salon and make money cutting hair, the cost and the burden for you to go get the necessary approvals from the cosmetician association is too burdensome for, you know, the average person who's poor and needs to become a hairdresser. And it's just insane that you can't just go be a hairdresser.

• 45:13Jason Calacanis?

  The government needs to ensure that people don't get bad haircuts.

• 45:17Chamath Palihapitiya?

  It's worse, it's worse. You don't need a license to be the engineer that writes the machine learning code that either drives a car autonomously or that, you know, helps propel disinformation in the social network, but you do need to have a license to give someone a buzz cut.

• 45:37David Friedberg?

  Oh, that's a bingo statement right there.

• 45:39Jason Calacanis?

  Yeah. I mean, in fairness, I am checking out Sacks's new haircut here and I'm kind of thinking...

• 45:45David Friedberg?

  So there should be more regulation?

• 45:46Jason Calacanis?

  There might.

• 45:47David Sacks?

  I was practicing without a license.

• 45:49Jason Calacanis?

  You were.

• 45:50David Sacks?

  Yeah.

• 45:51Jason Calacanis?

  We can't see the result of this.

• 45:55Chamath Palihapitiya?

  Sacks, you're so, you're so white and pale, you're blending into the background shade. It's impossible to see where your skin ends, your hair starts and the shade.

• 46:06David Friedberg?

  But I feel like the regulatory, if you think about the framework, you know, it extends into education too. Like, you can't go get an entry level job without a quote unquote "college degree." How fucking useful is a college philosophy degree to someone that's trying to get an entry level job working at X, Y, or Z bank, right? Like, it's, um, it's a bit absurd that the structure is set up so that there are, whether it's, you know, government or not, but there is effectively a hurdle, um, which is this... Alternative to regulatory capture, but it's like call it embedded system capture. Like there is a significant kind of hurdle that you have to get through that costs a lot. And the point of entry has gotten too high for most and it really stalls things out and it's going to cause more damage than good.

• 46:47Jason Calacanis?

  Well, and it's also been completely disconnected from the reality of your employment potential. People are going into debt for $200,000 in a liberal arts degree. That provides no scale that is valuable in the world.

• 46:58David Friedberg?

  Do we all agree that makes sense? Like, does anyone on this in this group argue for needing a bachelor's degree for everyone?

• 47:03Chamath Palihapitiya?

  No, I don't think I think I think it's useless.

• 47:07Jason Calacanis?

  What do you guys think of ISAs, income sharing agreements? These have become kind of Lambda School does them, a bunch of other schools. David, you saw a startup we just invested in that's doing them. And I think you liked them at the demo day we did with Kraft. Maybe, you know, this idea is who should take the risk for an education? And when you look at an ISA, an income sharing agreement, what they're saying is the school takes the risk. They let you come to school for free. They give you what would be the equivalent of, let's say, a $15,000 coding camp or growth marketer risk. Then you pay double that amount over five, six, seven years as a percentage of your income. But if you don't get income, if you don't break 50K a year, you don't have to pay it back.

• 47:50Jason Calacanis?

  And if you decide to go back to school or your income drops below 50, you don't have to do it. Can you imagine if a college had to make that promise?

• 47:57Chamath Palihapitiya?

  They should do it. They should start in college sports, but they should do it. Imagine you, you know, Duke basically went recruited kids and said, listen, we're going to pay you to come to Duke. We're going to get you educated. We're going to teach you how to play basketball better than anybody else. And we're going to take 5% of your future earnings. Yes or no? You're not going to have to go to boosters. You're not going to have to take money. You're not going to have to do any of this stuff on the side, but just be your best, learn to play the game. We'll get you a reasonable education. We'll give you a good infrastructure and we take 5% of the backend.

• 48:27Jason Calacanis?

  With a cap, so you could cap the upside, right?

• 48:30Chamath Palihapitiya?

  Or maybe there's, maybe there's no cap and, and but, but why do we always have to care about all of this? Like, it's like, you know, it's like, whatever, maybe it's 5% for the rest of your life. You're going to pay the government 50%, you get nothing in return. So if you pay 5% and you get Coach K to teach you how to shoot a jumper, it's better than that. Right? So why, why isn't it possible? And I remember how people had this unbelievably paternalistic allergic reaction to income sharing agreements when they were first talked about.

• 48:55Jason Calacanis?

  They called them indentured servitude and they compared them to slavery and it was like, oh my god. Oh, so insulting to the concept of slavery.

• 49:02David Friedberg?

  It's no different than signing a contract with an agent to represent you when you first start out in any industry, music or, or sports or, uh, film or whatever. You could sign an agency agreement where the agent is your rep for 10, 20 years, right? I mean, some of those agreements can have long tails on them and that's effectively the same.

• 49:18Chamath Palihapitiya?

  You know, it's even worse.

• 49:19Jason Calacanis?

  Had a cap.

• 49:20Chamath Palihapitiya?

  Look at, look at, uh, we, we can talk about this in a second, but like, you know, did you see what happened with Chappelle the last couple of days where?

• 49:26Jason Calacanis?

  Oh yeah, let's go. Did you watch the video?

• 49:29Chamath Palihapitiya?

  I loved it. Yeah.

• 49:30Jason Calacanis?

  The video is incredible.

• 49:31Chamath Palihapitiya?

  Video was incredible. So the, the, the quick story on this is Chappelle basically did, um, he had a request. He went to Netflix and he said, take down Chappelle's show. Netflix took it down and he did a little stand up. It's on his Instagram. It's like 18 minutes. It's, it's fabulous as most Chappelle stuff is.

• 49:46Jason Calacanis?

  Peak Chappelle.

• 49:47Chamath Palihapitiya?

  Peak Chappelle. And he basically told this story, which essentially the punchline is like, you know, he signed a contract where he just got completely fucked. And he's like, this is happening every single day in so many markets. And so the idea that then you have actually a different market, which disrupts something by actually creating transparency and something reasonable is all of a sudden completely immoral. Makes no sense to me. So there's abuses happening all the time. That is what the, the contract that Chappelle signed was indentured servitude. He doesn't even have the rights to his name. He cannot

• 50:22Jason Calacanis?

  They took his name and likeness, right? Yeah, if you wanted to create the Dave Chappelle Show again, he'd have to call it the DC Show.

• 50:27David Friedberg?

  But this is a perfect

• 50:28Chamath Palihapitiya?

  Somebody owns his name? What the fuck?

• 50:31Jason Calacanis?

  In perpetuity, in all mediums and platforms forever.

• 50:34David Friedberg?

  This is a perfect tieback to the earlier statement about, you know, do you have the appropriate kind of understanding of the risk you're taking or the benefit that you're getting? I think Kanye has been doing this whole thing about he doesn't own the masters to his music originally, right? At the moment that he signed that contract, when he signed over all the masters, you know, the master recordings and all the future revenue rights to his music, he was getting paid a ton of money in his mind at that time. He said, oh my gosh, I'm getting whatever it was. Let's say it's $5 million. I'm getting $5 million, the most amount of money I've ever seen. It is absolutely worth me giving over the masters of this music and the future royalty rights to this music for 12 songs or whatever it is, for me to get $5 million today and I can live an amazing life and it will change everything for me.

• 51:17David Friedberg?

  Who is to say that he was not, you know, of the appropriate sound mind and understanding to decide in that moment to take that $5 million and give up all future royalties to his music?

• 51:27Jason Calacanis?

  Well, Chappelle's, Chappelle's argument was the people who are in that ecosystem are all friends, they're all working together, and they've commoditized the artist and they collude to do this kind of upside limiting deals. And I think what makes Silicon Valley so special is that we collude the other direction. We want people to have equity participation and we want, the social contract of Silicon Valley is, I'm giving you equity, I hope your, your penny stock becomes worth $1,500 and that you create multi-generational wealth and you become an angel investor.

• 52:01David Friedberg?

  But I don't know, look, if I, if I'm an angel investor or want to be an angel investor and some schmo tricks me into investing in his shitty company and I just lose $20,000, but I didn't know how to determine whether that company was shitty or not because I've never done investing before.

• 52:14Jason Calacanis?

  Read my book.

• 52:14David Friedberg?

  Is it for the government to regulate that circumstance and say, you know what? You need to be a quote unquote qualified investor to be able to discern a good company for a bad company or bullshit from not. And the same, and the same for these contracts, right? Like, I mean, so, you know, we're making the argument, I think, for the, you know, the regulatory framework for preventing people from being able to have freedom of choice. And I think like earlier, you know, that the case was made like people should be able to make have freedom of choice at any point. Why should the government kind of step in and make a decision for me?

• 52:41Chamath Palihapitiya?

  I think that there I'm not I'm not advocating advocating for government intervention. My my only point is that there are morally reprehensible things that are happening today using contracts and that, you know, something like an income sharing agreement actually rights the ship in so many ways.

• 52:57David Friedberg?

  That's definitely the burden of capitalism. Ultimately, you know, it it devolves to that, right? Where like, oh, you're sick, you have cancer, pay me a million dollars, I'll give you this drug.

• 53:05David Sacks?

  So Hollywood's a little bit of its own beast where there's all these gatekeepers and the gatekeepers are always trying to get control over, you know, the creative product. And so, yeah, like, you know, signing contracts with those sharks is always a dangerous thing to do. I think Silicon Valley is very different. We have much more of a culture of of equity. I think the income sharing agreements are much more in that vein. And I think they're a great idea for like any trade that demonstrably increases your earning power, right? So the beauty of Lambda School is they pay for you to get an education being a coder. It then increases your salary and they get a piece of that. That's like a win-win for everybody.

• 53:48David Sacks?

  I think where this goes, if these ISAs are successful, is that every trade that's valuable will get its own ISA type school. And then that gets peeled out of a university education. So what's left for colleges to do? It's basically, you know, all the stuff that doesn't add value.

• 54:06Jason Calacanis?

  They're museums. They're they're basically like these monasteries again, right? They go back to being monasteries, not places where you get skills.

• 54:13Chamath Palihapitiya?

  We need to set we need to celebrate vocational capability because I think like, you know, we have we have so celebrated this mythical bachelor's degree and it just means fucking nothing. It like it doesn't really

• 54:26Jason Calacanis?

  Learn a trade.

• 54:26Chamath Palihapitiya?

  Learn a trade and that's just as frankly, that should be as respected or more. But in in the American culture, you don't do that right now. I've never understood that. If you go, for example, to different countries around the world, Europe's a good example actually of this, because it's the closest analog in terms of quality of living to America. There's a real celebration of people who choose vocational trade craft because there's an entire educational infrastructure that you can onboard yourself into. You can become a skilled person and you can have a really good decent life.

• 54:57Jason Calacanis?

  And there's pride in the work.

• 54:59Chamath Palihapitiya?

  And there's pride in that work. And in America, you know, you covet this piece of paper. The piece of paper is really just a scam that allows, you know, administrators to basically pay themselves millions of dollars and/or run an asset management business as the Trojan horse of that purpose. It just doesn't make any sense. And so, you know, I don't know, I just think it's, I just think.

• 55:22Jason Calacanis?

  The most amazing thing about these companies, I've been digging into them because I'm looking for more to invest in. And these companies, these companies that are, the trade schools that are basing themselves on ISAs, and there are ones who are doing welding and plumbing and all kinds of different things. And there are ISA platforms that are providing ISAs to any school that wants them and doing like the sort of AWS of ISAs. Anyway, these, what this firm told me was, inside of one of these trade schools, they spend 50% of their time on placement, 50% on education. And that at a college, they spend 99. X amount of time on the education and less than 1% on placement, which kind of attracts, right?

• 56:04Jason Calacanis?

  I mean, when we went to college, I don't know if it's changed much, but the career services center was like this two-person office, like in the worst part of campus. And they don't, when you're doing an ISA, if you accept more people who are unqualified and can't, aren't ready for the education, are not motivated for it, it works against you because they're not going to pay back the ISA. So you then get sharper. You know, you sharpen the blade of who gets accepted. You start accepting the right people. These colleges, they would accept anybody who would come in and take the loans. That was your qualifiers. Did you pass your loan?

• 56:40David Sacks?

  The ISA as a service idea is a brilliant idea. I would invest in that. I like that idea as an investment way better than running one of these schools. You know, that's basically issuing the ISAs themselves. But how amazing is that? That we live in a country where people are willing to, you know, as a movement now, people are willing to fund your education because they know it's going to increase your earning power and then they'll get paid on the back end. That's like fantastic. And like, that's all like happening, all that innovation is happening right now without the government needing to get involved or a big government loan program.

• 57:15Jason Calacanis?

  And the hysterical laugh is calling it indentured servitude. Literally like the Voxes and the New York Times of the world.

• 57:23David Friedberg?

  Yeah, but indentured servitude is having a $250,000 debt that you've got to pay down and you can never get rid of in bankruptcy for the rest of your life.

• 57:31Chamath Palihapitiya?

  Yeah, that's real indentured servitude. I think the problem is that, you know, East Coast, left-leaning editorial publications, they have to themselves justify their $190,000 bachelor philosophy from Oberlin College. So, you know, if you, if you take that-

• 57:52David Friedberg?

  You know, Chumma, Oberlin is the number one listener base we have on this podcast.

• 57:55Jason Calacanis?

  Yeah, you just lost.

• 57:56David Sacks?

  No, but you're right. Once you've taken out every valuable trade and moved them from a university where you got to pay a hundred thousand a year to an ISA where it costs you nothing, like what's left? Is this going to be people studying Foucault?

• 58:10Jason Calacanis?

  Intersectionality studies.

• 58:13Chamath Palihapitiya?

  They'll be studying the past. They'll be studying the past.

• 58:16Jason Calacanis?

  What a disaster to collapse upon itself. All right, as we wrap up here, let's just take a moment to think about what some people are calling the big reset. It's Thanksgiving. We have a change in management in the country, which is obviously polarizing. So I'll put that aside. But I think what's happened with these vaccines and science is truly miraculous. And let's face it, a lot of people, there's a lot of pain and suffering this year. A lot of people lost their jobs. A lot of people lost their restaurants. A lot of people are suffering from mental illness. Some people are having to take care of their kids and get to know them. I mean, it's been hard for a lot of people. Sorry about that, Sax. That wasn't directed at-

• 58:55Chamath Palihapitiya?

  David, do you know your children's names now?

• 58:57David Sacks?

  I do now.

• 58:58Jason Calacanis?

  David, what's it like to spend three hours with one of your children?

• 59:03David Friedberg?

  He's got flashcards in front of him right now. There are pictures on the back, the neighbor on the side.

• 59:09Jason Calacanis?

  So brutal. So anyway, I was trying to be sincere.

• 59:12David Sacks?

  The kids would even occasionally run into my office during COVID, you know?

• 59:16Jason Calacanis?

  Yeah, they want to talk to you and hug you and show affection.

• 59:18David Sacks?

  Crazy. They're like, excuse me, sir. Who are you?

• 59:20Jason Calacanis?

  I'm your father. Actually, I have.

• 59:25David Sacks?

  I thought I was just working from my office and all these kids show up and tell me it's their home. So.

• 59:31Jason Calacanis?

  Well, we, I just wanted to announce to the all in audience that we have upgraded Friedberg and Sacks chips. Just last week, Chamath and I pushed the update for the joy 1.7 update. And how's it been going to the two Davids now that you have a third emotion?

• 59:46David Friedberg?

  We now have emotion of joy.

• 59:49Jason Calacanis?

  Do not use it for.

• 59:51David Friedberg?

  It feels good and warm inside body.

• 59:54Jason Calacanis?

  Do not use it all in same day. Spread it out over a month.

• 59:58Chamath Palihapitiya?

  Hey David, did you think that Trump actually resigned two days ago? Was that, was that, was that the equivalent of a like, or the concession tweet?

• 1:00:06David Sacks?

  It was acceptance of, you're talking about when they, he authorized the GSA to release transition funds to Biden. Yeah. I mean, that, that, that was his concession right there. That, that's, that's basically what you're going to get out of him. That's his acceptance of the, of the election result.

• 1:00:23Jason Calacanis?

  So after anger, he is now went into bargaining and then he was depressed and now he's accepting.

• 1:00:31David Sacks?

  Well, what, what basically happened is, you know, you had Rudy and Sidney Powell and, you know, that legal team going to court to try to challenge all these rules. The whack pack. Yeah. They tried to go to court to challenge all these rulings. I think Rudy was like one in 35, meaning I think he won one ruling and lost 35. So it was going very, very poorly.

• 1:00:51Jason Calacanis?

  So like you versus Alan Keady, go ahead.

• 1:00:53David Sacks?

  Yeah. But the thing, that's a whole separate story we'll get into. But, but the thing that really like ended it was when Sidney Powell came out with this elaborate conspiracy theory that actually Trump lost the election because communist code writers had effectively, you know, infected this, the, the software that was running the, the election. And somehow Hugo Chavez was behind this, even though he's been dead for seven years.

• 1:01:21Jason Calacanis?

  Hugo got us again.

• 1:01:23David Sacks?

  And the, and the Republican governor of Georgia and secretary of state were in on it. Anyway, it was so wild and crazy that basically the narrative just cracked. And so then you had like. Steve Schwarzman come out and then sort of the Republican business community and, and Pat Toomey, you know, Republican Senator from Pennsylvania came out and they all just said, "Look, this is, this is ridiculous." And so that, that was the moment, I think, at which the, this narrative that the election was stolen kind of cracked is, and I think she kinda, she did everyone a favor by being so like off the reservation that it just brought the whole thing to like a meltdown.

• 1:02:03Chamath Palihapitiya?

  Sidney Powell always, whenever I see her, I always, I, I just think that she's one second away from her dentures flying out of her mouth and hitting the camera.

• 1:02:11Jason Calacanis?

  I mean, that's your crazy aunt. That's the crazy aunt at Thanksgiving. Like she-

• 1:02:15David Sacks?

  She said she was gonna release the Kraken and I guess she meant the-

• 1:02:18Jason Calacanis?

  I think she meant smoked the Kraken.

• 1:02:20David Sacks?

  -hair dye that was running down Rudy's, I think it was the hair dye running down Rudy's face.

• 1:02:23Jason Calacanis?

  Yes, exactly. That's the Kraken. Rudy's the Kraken. I mean, I'm, I'm glad that-

• 1:02:28David Sacks?

  It was a total meltdown. It was a total shit show.

• 1:02:30Jason Calacanis?

  I'm glad the GOP finally, after Trump's defeat, decided with 55 days left to go, that they would take a stand against-

• 1:02:41David Sacks?

  Well, let me, let me tell you what I think is gonna happen now. What, let me tell you what I think is gonna happen now is I think that this New York Times article, we talked about at the top of the show about the fact this Operation Warp Speed, that it was a big success. I think that, that the best narrative for Trump, if he wants to maintain this idea that he was robbed, is not that he was sort of legally robbed with fake votes or fake voting software, but rather just that if these pharma companies had put out the news a week earlier-

• 1:03:08Jason Calacanis?

  Yes.

• 1:03:08David Sacks?

  It would have meaningfully changed, like, and I think he has an amazing story there.

• 1:03:13Jason Calacanis?

  I would agree with him.

• 1:03:14David Sacks?

  Yeah. And it's kinda like, you know, um, when you have like a major sporting event, there's like a bad call by the refs and all the fans basically said, "Oh, we were robbed." Well, you can't get that like result overturned. It is what it is. You lost. But you have a talking point forever that you lost. I mean, if you go to St. Louis or whatever and you mention-

• 1:03:36Jason Calacanis?

  There's an asterix. There's an asterix.

• 1:03:37David Sacks?

  Yeah, there's an asterix. Yeah.

• 1:03:38Jason Calacanis?

  Yeah, when they suspended Draymond, when the National LeBron Association suspended Draymond in that series.

• 1:03:44David Sacks?

  There are all these sporting events with asterisks by them. I mean, like, you know, if you go to St. Louis and mention the name Don Denkinger, you know, people will know what you're talking about. The, I think the Cardinals lost, he, he, the St. Louis Cardinals lost the eighty-five World Series because of a first base umpire's call, or at least that's their view of it, right? And so I think, you know, what, what Trump can do is, is say that, look, we were robbed because we never got credit for the vaccine. Now, if, I, I do think the economy is going to bounce back really strong next year because of the vaccines, right? I, I think you got to say that if these vaccines end COVID in the next three, four, five months, twenty twenty-one is going to be a great year. So if Trump hands Biden these vaccines and the

• 1:04:29David Sacks?

  economy does well next year, but something bad happens between now and four years from now, he'll say, I handed this guy everything on a solar platter, he screwed it up. And that'll be his narrative for four years from now. Could, could happen. I'm just saying.

• 1:04:43Chamath Palihapitiya?

  What do you, what do you think about, um, what do you guys think about the picks so far?

• 1:04:48David Friedberg?

  Janet Yellen for Treasury Secretary is great.

• 1:04:51Jason Calacanis?

  Thank God she's not Elizabeth Warren or Bernie Sanders.

• 1:04:54David Friedberg?

  Yeah.

• 1:04:54Jason Calacanis?

  And then keep those socialists out of the party.

• 1:04:56David Friedberg?

  Well, I do think the biggest, I do think the biggest challenge we're gonna face is, um, is this monetary policy issue. I mean, the dollar is, is, you know, in decline. We printed thirty percent of the US dollars in circulation in the last six months, and everyone's cheering that the Dow is at thirty thousand. It's like, well, you know, there's thirty percent more dollars. So everything's going to inflate. So I think there's a lot of work to do. It's great to have someone sitting in that seat, uh, who understands economic policy really clearly and, and the tide of monetary policy.

• 1:05:27Chamath Palihapitiya?

  Yeah, I think the picks so far have been, have been really, um, really top-notch. Tony Blinken, friend of a couple of ours, uh, for Secretary of State, he's a star. Um, Yellen's a dove, which I think is really good for just, you know.

• 1:05:40David Friedberg?

  Did you guys know the Chief of Staff, Sax? Do you know who this guy, he's been like Biden's aide for a long time, kind of? Is that the deal?

• 1:05:47Chamath Palihapitiya?

  Ron Klain, he's a founder of revolution with Steve Case.

• 1:05:50David Friedberg?

  Yeah.

• 1:05:50Jason Calacanis?

  Yeah, he comes from a venture background, which is great.

• 1:05:52David Sacks?

  All of Biden's picks have been people who've been longtime Washington hands, who he's had personal relationships with for a long time. He really seems to value that personal loyalty. And they've also been kind of, you know, nice and boring, safe.

• 1:06:06Jason Calacanis?

  Efficient.

• 1:06:06David Sacks?

  Experience picks. I think he's delivering on kind of what he promised to be, which is a president we can forget about.

• 1:06:15David Friedberg?

  Yeah, just tone it down. That's his motto.

• 1:06:17David Sacks?

  He's gonna be a caretaker president.

• 1:06:19David Friedberg?

  Yeah.

• 1:06:19Jason Calacanis?

  What do we do without Trump to talk about on this podcast? Because it's been about 34%. We're gonna need a new topic to rotate in here. We might need to put in a little Netflix. As we wrap here, what are you thankful for? And what are you most looking forward to next year? Vis a vis, just, it's been a rough year. I mean, listen, it's been nice for people's equity portfolios, of course. But it is really, what do you hope for America, for humanity, for yourselves, for your family, for your friends? You know, what are you thankful for? And I'll let you, Friedberg. It looks like your processing unit has delivered a result, so let's hear it.

• 1:06:59David Friedberg?

  The emotion bank has been cleared.

• 1:07:05David Friedberg?

  Uh, it, I look, I don't think that this year was any, uh, any cup of tea for anyone. Uh, so I think like everyone, you kind of value your friendships and your family. So it's, uh, it's been, uh, it's been a year, you know, going into COVID, I was in the office every day, spending more time at home, being closer to my children. I know their names, by the way, Sax. I'll, I'll, uh, teach you how to learn them. There, uh, it's been, it's been actually really special being at home a lot and being with the family a lot and realizing like how much that stuff matters and how being close to everyone matters. Because when you're in the run of the life before you kind of get knocked back and just put everything in perspective, you miss those moments. So that's been really special and important to me this year in a really kind of personal way.

• 1:07:49David Friedberg?

  And just having friendships, right? I mean, it's great for us to all be able to, to talk as we do every day and have people you can kind of connect with, even if you're not sitting in person. I do think that everyone realizes they need that. So anyway, it's been a it's been an insightful year. Money aside, it's yeah, I was fucking terrorized at the start of this year about money. And the end of the year.

• 1:08:09Jason Calacanis?

  Here you go.

• 1:08:09David Friedberg?

  There it is. It's all a fucking roller coaster.

• 1:08:11Jason Calacanis?

  Sold the first company and now you got the second one IPO. And congratulations, Mazel. Sacks, has your processing unit overloaded with this question? Or are you going to be able to articulate something you're thankful for and appreciate?

• 1:08:23David Sacks?

  I I I agree with with all the things that Friedberg said. Um, you know, the flip side of working from home all this time is you do get to spend a lot more time with the kids. Um, I personally have I like this shift to remote work where I can do a meeting from anywhere. You know, you don't have to go to the office. That's been kind of kind of nice upside, I think. I think we've probably all learned how self sufficient we can be. Um, I have learned how to give myself a haircut. Apparently you guys don't think done a very good job with it, but um.

• 1:08:54Jason Calacanis?

  Well, it's better than you have your long hair. Yeah.

• 1:09:00David Sacks?

  So yeah, but look, I mean, I'm thankful for, um, you know, knock on wood, we all have our health and, um, you know, and, uh, weirdly, the the economy Silicon Valley is doing still doing great. Technology is doing great. Still the future. And I think the country is even though COVID is kind of at its worst right now, I do think it's going to get rapidly better as soon as these vaccines come to market. So I do think we'll we'll work. I do think 2021 will be a much, much better year.

• 1:09:30Jason Calacanis?

  Shemah.

• 1:09:32Chamath Palihapitiya?

  Um, in this really crazy way, I actually now am pretty thankful um, for what I've learned during the pandemic. I mean, I wish we didn't have to go through it, but um, I think that it was the most psychologically stressful period of my life. Um, just to be so. Isolated from everybody. And I learned something about myself recently, which is that in psychology, it's called repetitive compulsion, which is sort of like, you know, you repeat the sins of your father, or in this way, you know, I repeat these tired ways of behavior from my teens and my twenties that were

• 1:10:17Chamath Palihapitiya?

  just unproductive. And in the day to day life of just running around and going to meetings, as David said, like flying around, go to a meeting, go to the office, go here, go there. You can make a lot of excuses for shitty behaviors that you carry with you. And so what I'm really thankful for is in this lockdown, I've been forced to really find the things that I don't really like about myself and try to fix them. So, you know, I'm really thankful for that because I think hopefully, everybody has something positive to look at at the end of this, and that's definitely one thing for me.

• 1:10:53Jason Calacanis?

  That's very touching and actually quite appropriate as we wrap here because Sacks and Freebrooke and I had some things we don't like about you, Chamath, that we wanted to bring up. You kind of knocked one off the list already, so we've got four more to go.

• 1:11:08David Sacks?

  It's good you're doing this work.

• 1:11:11Jason Calacanis?

  It's good. We were planning an intervention for this end of the pod, but you kind of opened the door. So here we go. You know, I'll wrap up with just saying, you know, family and friends are the obvious, you know, things that you appreciate at this time. I am thankful also for the hope that we've seen from, you know, what we can do collectively as a society. When we put our minds to something, Warp Speed comes to mind. These frontline workers, I mean, we really maybe have seen what a global, challenging problem being solved can do. And hopefully, that can translate into something like nuclear disarmament, sustainable energy, global warming, etc.

• 1:11:55Jason Calacanis?

  And so I think on a macro level, the most macro level is the species. Us humans as a species have now had an enlightening moment, just like world wars and you know Hiroshima and Nagasaki kinda changed people's perspective of the entire world. Jay and I were talking about that the other day, how people looked at the world differently after those horrific bombs went off. I think after this bomb goes off, we're gonna look at the world and say, hey, we can solve problems, right? And maybe we can be proactive about that. And then finally, I think for the people suffering from mental illness, who maybe I was callous and made fun of, or maybe just didn't relate to, I can relate to now because I have felt depressed, I have felt anxious, I have felt exhausted from this, right? And it's the first time in the 49 years I've been on the planet that

• 1:12:38Jason Calacanis?

  I ever would say I felt depressed. I didn't understand what that meaning was when Sacks would tell me how depressed he was. I just never, it never hit me. I'm joking, he never said that, but it's a good joke. I am joking. But I, you know, I think for people suffering from mental illness, get help and you know, talk to people. And I think this really opened my, my eyes to that. And of course, this podcast, you know, and our friendship-

• 1:13:02Chamath Palihapitiya?

  This podcast was the best thing that, that, and one of the best things in my life that came out of this whole period.

• 1:13:07Jason Calacanis?

  I think for me too. And you know, I've heard that from a lot of the people who listen to it. And I'm sure if Sacks and Friedberg had a fourth emotion, they would, they would agree with us.

• 1:13:16David Sacks?

  Frankly, I think this podcast has been doing nothing but costing me money.

• 1:13:21Jason Calacanis?

  Because I painted you as a Trump supporter.

• 1:13:24David Sacks?

  God knows how many deals I've lost-

• 1:13:26Jason Calacanis?

  You are not a Trump supporter.

• 1:13:27David Sacks?

  Yeah. God knows how many deals I've lost because Jason keeps trolling me as a Trump supporter. And then on top of it, I get cut out of the only good bestie deal.

• 1:13:35Jason Calacanis?

  If you would-

• 1:13:38David Sacks?

  I thought at least I would get this bestie deal. And you guys cut me out of it.

• 1:13:42Jason Calacanis?

  Okay, listen, I just want to be clear. Sacks is a conservative and a Republican. He is not a Trump supporter. He did not vote for Trump. This time he did not vote for Trump. Last time, he does not support Trump's behavior.

• 1:13:55David Friedberg?

  You can't out what he's voting, dude.

• 1:13:57Jason Calacanis?

  Sorry, but he told me he didn't vote for him.

• 1:13:59Chamath Palihapitiya?

  Well, he did. Which one, which one of us, which one of us is gonna try to hire Jared Kushner as a general partner?

• 1:14:07Chamath Palihapitiya?

  Oh, no, definitely not. If you are saying most likely because now you're reinforcing the theme that's actually if you had to pick actually if you had to pick a venture fund that is most like the higher jerk as a GP.

• 1:14:18Jason Calacanis?

  Andreessen Horowitz.

• 1:14:19David Friedberg?

  Are they still around?

• 1:14:21Chamath Palihapitiya?

  Founder's Fund.

• 1:14:22Jason Calacanis?

  Uh, no. I don't think Peter wants to share the spotlight.

• 1:14:26Chamath Palihapitiya?

  Uh, okay.

• 1:14:28Jason Calacanis?

  I go Andreessen. They'll do anything to get a press release.

• 1:14:32David Friedberg?

  I don't think that guy needs a fund to go work at.

• 1:14:34Chamath Palihapitiya?

  True.

• 1:14:35Jason Calacanis?

  Yeah, he'll just go buy another.

• 1:14:37David Sacks?

  Yeah, he did get three Middle East peace deals done. So, but, you know.

• 1:14:44Chamath Palihapitiya?

  By the, by the way, by the way, I mean, talk, talking about inheriting incredible dividends, but is it the most incredible thing that you can come in and get Middle East peace done? But if you really unpack Middle East peace, do you think that Middle East peace would have happened if the cost of solar was not cheaper than the cost of oil? Honestly, be, be like, if, if, if you, if you didn't see an end in sight to oil, do you think that the Middle East piece?

• 1:15:09David Sacks?

  Yeah, I know what you're saying.

• 1:15:10Chamath Palihapitiya?

  I don't think so.

• 1:15:11David Sacks?

  Well, I, I know what you're saying, which is that if the Middle East wasn't becoming less strategically relevant to us, you know, that, that creates degrees of freedom, I think. But, um, yeah.

• 1:15:22David Friedberg?

  That's had profound benefits for Silicon Valley too, right? Like, I mean, all the Saudi money that went into the Vision Fund and the, the money from Qatar and the money from like all these sovereign wealth funds in the Middle East has funded a lot of venture funds, has gone into direct late stage rounds in a lot of companies. And it's really been a great boom for Silicon Valley. People can make fun of the companies getting overfunded and the nonsense that's gone on all they want, but like money, money coming in, it filters out into more angel investing, it filters out into more venture LPs, and it ultimately gives a big boost to this ecosystem. So I, I, I think that the damage to oil has been great for Silicon Valley.

• 1:15:57Chamath Palihapitiya?

  The most incredible dividend of climate change is peace. It's like, it is made radical Islam a failed startup, you know, a hyped series A that couldn't raise its series B. It's made, you know, sworn enemies over thousands of years cooperate together. All for what reason? Because you gotta pull the oil out of the ground now and monetize it. Because otherwise, the cost of wind and the cost of solar.

• 1:16:24David Friedberg?

  And you have to diversify.

• 1:16:24Chamath Palihapitiya?

  And you have to diversify because otherwise the cost of wind and the cost of solar is going to make pulling the oil out of the ground economically and feasible within three or four years.

• 1:16:32David Friedberg?

  Yeah, I mean, that's why they took Saudi Aramco public. They started selling off the shares and they invested that capital in tech and other stuff around the world.

• 1:16:41David Sacks?

  It's been helpful, but there is, there is a, another factor at work, which is the fear of Iran is now greater than, on the part of Saudi Arabia and Israel, their fear of Iran is now greater than whatever mutual hostility they used to have. And so it's, it's kind of bringing people together that way. But you gotta give Krishna credit for still getting those deals done. You know, no one thought he could do it. I remember everyone was mocking him.

• 1:17:07Chamath Palihapitiya?

  I agree.

• 1:17:07David Friedberg?

  He's not, he's not, he's not a moron and he's not, he's the opposite of an abrasive guy and he's very thoughtful and apparently very, I don't know if you guys know him personally, but he's supposed to be very smart. And I'm sure that wherever he ends up next, he's going to do very well and he's going to get invited to be in a lot of places.

• 1:17:25Chamath Palihapitiya?

  Yeah. No, it's clear he did a very good job on the Middle East stuff.

• 1:17:28David Sacks?

  Yeah. By the way, how crazy is it that Trump delivers on hottest economy ever, peace in the Middle East, and three vaccines for coronavirus, and he still lost?

• 1:17:40Chamath Palihapitiya?

  Yeah, well, it does go to tell you what, what people think of character.

• 1:17:43David Friedberg?

  Yeah.

• 1:17:44Chamath Palihapitiya?

  Character matters.

• 1:17:44David Friedberg?

  I don't know if you watch how he tweets, but.

• 1:17:47Chamath Palihapitiya?

  He tweeted himself out of office. If he acted normal, Sacks, he could actually take those victories. If he stopped the personal attacks, if he stopped the grifting, he would have won. He could have been, he actually, it would have been more than one. If he, if he came in, if he, he could, exactly what I was thinking. If he came in, in 2016, calm, cool and collected with a team where there was a dial down the insecurity and dial up sort of the intensity of actually calling people out for not passing progressive change, he would have been elected in a landslide. People would have said, well, on the way in, we were afraid, but after four years, the guy actually. He could have been magnanimous, is what you're saying. Yeah. And it was a real missed opportunity for him.

• 1:18:27David Friedberg?

  I still think much of Trump is he's a WWE superstar and that's what people voted for. It's why Jesse Ventura got elected governor of Minnesota. It's why Arnold Schwarzenegger got elected governor of California. The average, you know, person that's looking at that guy versus, you know, the old dude that doesn't talk and, you know, saying some weird stuff about policy. It's like, oh, man, that guy looks awesome. Let's put him in office. Like, this is gonna be fucking fun. And if he turned it down when he got in office, he'd be much less appealing, I think, to a lot of people. I think it's that caricature of himself that makes him so, so appealing.

• 1:19:00Chamath Palihapitiya?

  Then I'd like to go, I'd like to go on the record with my 15-year projection then, or, uh, uh, which is that The Rock is gonna run for president.

• 1:19:08Jason Calacanis?

  Uh, I, I think, you know, the Iran situation, just to put that in perspective, David, if you look at the age distribution on the chart I just put in the chat, it is just extraordinary how young that country is. The median age is, I think, 28 or 29 years old. And they're barely holding on to power there. And it is going to flip into a much more progressive society than it is now. They are barely holding on. When you look at how many 25-year-olds and 30-year-olds there are in that country who are drinking and watching TV and have VPNs and they have the internet and they're watching porn and they're gambling, I'm sure, and buying Bitcoin and doing all this crazy stuff. That country's barely holding on. It's

• 1:19:52Jason Calacanis?

  gonna be a crazy civil war. And I just hope they don't have nuclear bombs when that civil war happens.

• 1:19:56Chamath Palihapitiya?

  Yeah, guys, guys, guys, like, being, being like extremist is just like, it's just a bad product market fit now. You know, it's just like, not worth it. There's, there's no money to fund it. Nobody cares that much anymore. Everybody's moved on.

• 1:20:10Jason Calacanis?

  Low NPS score.

• 1:20:12Chamath Palihapitiya?

  Yeah.

• 1:20:13Jason Calacanis?

  Would you recommend extremism to a friend or family member?

• 1:20:18Chamath Palihapitiya?

  Two.

• 1:20:20Jason Calacanis?

  All right. Uh, this has been another All In Podcast for bestie C, the Rain Man David Sacks, and the Queen of Quinoa on his coming out party today. IPO coming up for Metro Mile. Congratulations to Friedberg. Congratulations to Chamath on the pipe. Sacks and I, we're gonna have to figure out a way to lick our wounds and wet our beaks. Let's put our thinking caps on and over the break, find a deal we can exclude these two from.

• 1:20:47Jason Calacanis?

  We gotta, we gotta get in early, get 30% of a company and then we gotta have Chamath Spackett in Friedberg do the late-stage deal with all this metro mile money. And we'll see you all next time on the All In Podcast. That was fucking great. Best one yet.

• 1:21:00David Friedberg?

  Yeah, you guys wanna see something funny? You guys see that video my wife just sent me? That's my dog taking a shit on your driveway sacks.

• 1:21:09Chamath Palihapitiya?

  Oh, man.

• 1:21:11Jason Calacanis?

  Where is it? I wanna see that deuce.

• 1:21:14Jason Calacanis?

  It's a code 13 again. Oh, my God. There's only one person who hasn't code 13. Chamath, can you take a shit on his Model X?

• 1:21:23Chamath Palihapitiya?

  Oh, my God. That's unbelievable.

• 1:21:25Jason Calacanis?

  And then we all have code 13.

• 1:21:29David Friedberg?

  Oh, no, everybody.

• 1:21:31Chamath Palihapitiya?

  Can we roll over the credits?