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E197Sep 27, 2024

OpenAI's $150B conversion, Meta's AR glasses, Blue-collar boom, Risk of nuclear war

Takes
7
Companies
4
Playing out
3
Going against
0
Who weighed in
ChamathSacksFriedberg
2 bullish1 bearish1 mixed3 neutral

A call is only graded once it's had time to play out and the stock has moved beyond its normal range — long-term views get a full quarter before we'll say they're tracking against.

ChamathChamathCommentary

Chamath steelmans the bear case: open-source models commoditize AI value, Meta and Google threaten ChatGPT's front-door position, synthetic data costs favor deep-pocketed incumbents, and unprecedented executive churn signals potential internal problems.

the underlying frameworks that people are using to make these models great is well described and available in open source… Meta becomes much more aggressive in inserting Meta AI into all of the critical apps… all of these models basically
SacksSacksCommentary

Sacks sees OpenAI as the clear AI leader with best models and developer ecosystem, but flags that durability of its moat is the key question — if it can consolidate its lead it's on track to be a trillion-dollar company; if not, it could be commoditized.

I think there's no question that OpenAI is the leader of the pack. It has the most advanced AI models, it's got the best developer ecosystem, the best APIs, it keeps rolling out new products. And the question is just how durable that advant
FriedbergFriedbergCommentary

Friedberg argues the bull case for OpenAI's $150B valuation rests on its model performance and infrastructure lead — if it deploys capital wisely to stay ahead of Google, Microsoft, and Amazon, it can capture a multi-trillion dollar market and become a global tech giant.

if they can deploy infrastructure to maintain that lead and not let Google, Microsoft, Amazon, and others catch up, then their ability to use that capital wisely keeps them ahead. And ultimately, as we all know, there's a multi-trillion
MetaMETA+18.0% over 1yr 9mo
ChamathChamathCommentarytracking with the call

Chamath credits Meta for persistent iteration on AR glasses and believes they will be commercially successful, though he is uncertain whether glasses are the ultimate killer AI device form factor.

I think these glasses are going to be successful. My only comment is that I think that when you look back 25 and 30 years from now and say that was the killer AI device, I don't think it's going to look like something we know today.
SacksSacksCommentarytracking with the call

Sacks argues Meta is executing extremely well — successful cost-cutting, advances in AI including leading the open-source movement with Llama 3.2, and now appearing ahead on augmented reality — making it a strong performer across multiple fronts.

It seems to me that Meta is executing extremely well… they've caught up and now they're leading the open source movement… And now it seems to me that they're ahead on augmented reality
PalantirPLTR+240.8% over 1yr 9mo
SacksSacksCommentary

Sacks argues Palantir is ideally positioned for the AI era because its approach of integrating all enterprise data into a digital twin means AI can immediately be applied to those workflows, explaining why the market awards it the highest ARR multiple among public software companies.

the most highly valued public software company right now in terms of ARR multiple is Palantir… The first thing Palantir does when they go into a customer is they integrate with all of its systems… once all the data's in one place with the
SalesforceCRM-43.3% over 1yr 9mo
ChamathChamathCommentarytracking with the call

Chamath argues that AI agents will erode the necessity of traditional systems of record like Salesforce, making their expensive software unjustifiable as companies can pipe data directly and achieve the same outcomes at a fraction of the cost.

systems of record lose a grip on the vault that they had in terms of the data that runs a company. You don't necessarily need it with, in the same reliance and primacy that you did 5 and 10 years ago. That'll have an impact to the software