David Sacks

It is the backstop.

It is the backstop.

I mean, unless you want to live off the grid.

I mean, if you want to participate in the modern economy, it is the backstop.

And let me just make one other final point that kind of maybe leads into our next topic is I do think that there is the potential for the monopolization of this market to a greater degree than people may be pricing in right now.

First of all, we've seen that every other major tech category has led to a monopoly or duopoly situation.

seems to be the way that these things work out.

But also, if you look at the growth rates right now, Anthropic does seem to be pulling away.

There was an article in the information showing the latest numbers where I think Anthropic's now at, they seem to have pulled away from OpenAI, which is not surprising and something I predicted.

Look, if you have one company that's growing at 10x year over year, and another company that's growing at 3x year over year, within two years,

the first company will have 90% market share.

This is the power of compounding, right, is just do the math on it.

10 times 10 is 100, three times three is nine.

So again, if you just are able to outgrow your competitor at that rate for two years, you will achieve monopoly market share.

Now, there are reasons to believe that Anthropic cannot continue that growth rate for two years.

There's going to be a competitive response.

It's already happened.

Also, there may not be enough compute to support that kind of growth.

There may be physical constraints, but you'd always rather be the company that has that inertia that's on that trajectory than the one that has to do something different to then knock that leader off its current trajectory.

Well, there seems to be there seems to be a new like meme taking shape that somehow like all this token spend is is wasteful and basically useless and.