Frank Friedberg

I think I'll read the final paragraph of the email I sent to the Democratic Party leader a few months ago as a coda to this conversation. Here goes.

I think I'll read the final paragraph of the email I sent to the Democratic Party leader a few months ago as a coda to this conversation. Here goes.

The United States is facing a fiscal crisis the likes of which the world only sees every few hundred years as world-leading nation states overextend themselves, take on unaddressable debt loads, increase social programming, and eventually collapse under these conditions. The cost to service the interest alone on our federal debt is now greater than a trillion dollars per year.

The United States is facing a fiscal crisis the likes of which the world only sees every few hundred years as world-leading nation states overextend themselves, take on unaddressable debt loads, increase social programming, and eventually collapse under these conditions. The cost to service the interest alone on our federal debt is now greater than a trillion dollars per year.

This already exceeds the discretionary defense budget. The debt service expense will only swell as interest rates are unlikely to decline back to 0%. And I do not subscribe to the easy to refute economic arguments of modern monetary theory. Simple arithmetic is all that's needed to discredit it.

This already exceeds the discretionary defense budget. The debt service expense will only swell as interest rates are unlikely to decline back to 0%. And I do not subscribe to the easy to refute economic arguments of modern monetary theory. Simple arithmetic is all that's needed to discredit it.

Furthermore, I can identify dozens of federal programs sponsored by Democrats that are not achieving their objectives, yet we continue to fund them as if they were performing exactly as anticipated when originally conceived. Every federal program. should be held to account for performance every year. If not, they should be defunded.

Furthermore, I can identify dozens of federal programs sponsored by Democrats that are not achieving their objectives, yet we continue to fund them as if they were performing exactly as anticipated when originally conceived. Every federal program. should be held to account for performance every year. If not, they should be defunded.

Instead, I see the party pushing new programs that create new expense burdens without first addressing programs that simply aren't working. Accountability is a critical first step in reducing our federal deficit below 7% of GDP. I believe our nation is facing financial and thus social peril.

Instead, I see the party pushing new programs that create new expense burdens without first addressing programs that simply aren't working. Accountability is a critical first step in reducing our federal deficit below 7% of GDP. I believe our nation is facing financial and thus social peril.

I urge the party to become the, quote, party of reason and results, put forward leaders that can lead, hold government programs that aren't working to account, make sure that every dollar spent on social programming has a measurable impact, and if they fail to deliver results, cut them. The opportunity to be the party of reason and results is wide open.

I urge the party to become the, quote, party of reason and results, put forward leaders that can lead, hold government programs that aren't working to account, make sure that every dollar spent on social programming has a measurable impact, and if they fail to deliver results, cut them. The opportunity to be the party of reason and results is wide open.

Myself and many of my friends would scramble for the opportunity to support that party. That's the end of my statement. Did you get a response? Then a month later, the handler said, so-and-so has this on their docket. They're going to call you. Never going to call.

Myself and many of my friends would scramble for the opportunity to support that party. That's the end of my statement. Did you get a response? Then a month later, the handler said, so-and-so has this on their docket. They're going to call you. Never going to call.

I'm not really, I don't really have a great perspective on this where we hire very specialized people at Ohalo and in the specialty field we're in, we're the best in the world. So everyone wants to work here. Got it.

I'm not really, I don't really have a great perspective on this where we hire very specialized people at Ohalo and in the specialty field we're in, we're the best in the world. So everyone wants to work here. Got it.

I don't care if OpenAI is for-profit or non-profit. It affects a few people that put money in, and the employees. It doesn't affect anyone else, so...

I don't care if OpenAI is for-profit or non-profit. It affects a few people that put money in, and the employees. It doesn't affect anyone else, so...

You could say that about any business, right?

You could say that about any business, right?

They apparently raise money at an $80 billion valuation. So one could also argue that a company doing $3 billion in revenue getting an IPO done at $120 billion market cap. maybe the public already missed the big wave.

They apparently raise money at an $80 billion valuation. So one could also argue that a company doing $3 billion in revenue getting an IPO done at $120 billion market cap. maybe the public already missed the big wave.

It could go up, it could go down. But anyway, there's a bunch of people who put money in who are going to make a lot of money if this thing gets to be for profit.

It could go up, it could go down. But anyway, there's a bunch of people who put money in who are going to make a lot of money if this thing gets to be for profit.

I don't know enough.

I don't know enough.

Well, I've heard that they've had quite a bit of turnover because there's been pretty good secondary market activity, which means a lot of the employees have cashed out and they've made so much money. Just like what's happening at NVIDIA now, there's very little upside relative to how much money you've already made. So at that point, a lot of the early people start to leave.

Well, I've heard that they've had quite a bit of turnover because there's been pretty good secondary market activity, which means a lot of the employees have cashed out and they've made so much money. Just like what's happening at NVIDIA now, there's very little upside relative to how much money you've already made. So at that point, a lot of the early people start to leave.

Yeah, so they're trying to hire more people, it sounds like.

Yeah, so they're trying to hire more people, it sounds like.

I have no idea. I don't know what these guys are doing. Have you guys looked at this company? I haven't seen anything. Well, I mean, we're just basing it on reports.

I have no idea. I don't know what these guys are doing. Have you guys looked at this company? I haven't seen anything. Well, I mean, we're just basing it on reports.

We're using a lot more models and we're seeing them be very practically applied at the edge. So you don't need to have large models running on a large compute cloud to get practical value. And this is definitely a big, A big point in the industry is that you're getting highly functional application-specific models that can be run in a more local environment on the edge.

We're using a lot more models and we're seeing them be very practically applied at the edge. So you don't need to have large models running on a large compute cloud to get practical value. And this is definitely a big, A big point in the industry is that you're getting highly functional application-specific models that can be run in a more local environment on the edge.

So they're not running the cloud on big compute clusters. And there's incredible applications in things like machine vision and control systems. You're going to ultimately see this being... I don't know if you guys saw that Chinese dog. We never talked about this. China basically ripped off Boston Dynamics, or at least that's what it looks like. And they created this military dog.

So they're not running the cloud on big compute clusters. And there's incredible applications in things like machine vision and control systems. You're going to ultimately see this being... I don't know if you guys saw that Chinese dog. We never talked about this. China basically ripped off Boston Dynamics, or at least that's what it looks like. And they created this military dog.

Nick, can you pull up the clip? And then they put machine guns on the back of the dog's back. The models are running locally in these devices. In fact, I think we're going to have a few demonstrations of this at the... at the Olin Summit. So the robotic applications are pretty powerful. Machine vision applications are very powerful.

Nick, can you pull up the clip? And then they put machine guns on the back of the dog's back. The models are running locally in these devices. In fact, I think we're going to have a few demonstrations of this at the... at the Olin Summit. So the robotic applications are pretty powerful. Machine vision applications are very powerful.

And when you see this insane video from China, by the way, this is a totally different topic. You guys seen this?

And when you see this insane video from China, by the way, this is a totally different topic. You guys seen this?

So this thing goes autonomously into a building and it can then find its target and eliminate its target with the machine gun on the back. Incredible. And you can see this becoming like, let's say they build a assembly line and they put out 10 million, 50 million of these things, and these things can now go run autonomously in the field. This is the dark side of small,

So this thing goes autonomously into a building and it can then find its target and eliminate its target with the machine gun on the back. Incredible. And you can see this becoming like, let's say they build a assembly line and they put out 10 million, 50 million of these things, and these things can now go run autonomously in the field. This is the dark side of small,

highly performative application-specific models running in an embedded way.

highly performative application-specific models running in an embedded way.

I'll make one last wrap on this. I'll take the other side of bundling. Oh, here we go. I think ultimately, if bundling benefits the consumer or the customer from improved prices, I don't buy the antitrust arguments on a lot of these cases. I don't think that you're keeping...

I'll make one last wrap on this. I'll take the other side of bundling. Oh, here we go. I think ultimately, if bundling benefits the consumer or the customer from improved prices, I don't buy the antitrust arguments on a lot of these cases. I don't think that you're keeping...

competitive solutions in the market if the benefit of the lower cost product is actually there for the consumer or the customer. Supermarkets, for example, do this, right? So there's a lot of products in the supermarket like peanut butter, milk, eggs that have historically been big loss leaders because they get people in the store. Once they get in the store- Peanut butter is not a monopoly.

competitive solutions in the market if the benefit of the lower cost product is actually there for the consumer or the customer. Supermarkets, for example, do this, right? So there's a lot of products in the supermarket like peanut butter, milk, eggs that have historically been big loss leaders because they get people in the store. Once they get in the store- Peanut butter is not a monopoly.

So you're talking about one week. And Teams is not a monopoly, right? When you install it, Microsoft Office is and 365 is.

So you're talking about one week. And Teams is not a monopoly, right? When you install it, Microsoft Office is and 365 is.

There are other options. You have options. There's plenty of options.

There are other options. You have options. There's plenty of options.

Of course they do. I can switch to Google Docs and save money.

Of course they do. I can switch to Google Docs and save money.

I don't have to buy it. I don't have to buy enterprise seat licenses for Office. I can buy Google Docs. SMBs think that way, but enterprises have to have Office.

I don't have to buy it. I don't have to buy enterprise seat licenses for Office. I can buy Google Docs. SMBs think that way, but enterprises have to have Office.

They have every option to. Google's competing effectively in the Office space against Microsoft Office. Zoom is competing effectively against Teams. Like none of these businesses have a monopoly. Zoom, I would argue, is getting demolished.

They have every option to. Google's competing effectively in the Office space against Microsoft Office. Zoom is competing effectively against Teams. Like none of these businesses have a monopoly. Zoom, I would argue, is getting demolished.

What's the monopolistic lock-in? The amazing thing about SaaS is that there's no switching cost. There's no switching cost? What?

What's the monopolistic lock-in? The amazing thing about SaaS is that there's no switching cost. There's no switching cost? What?

You're saving money if you stick with Microsoft. They're giving you a discount.

You're saving money if you stick with Microsoft. They're giving you a discount.

That's a theory. And if that's true, that should be prosecuted. I don't think that the idea- Which it was under the Microsoft Internet Explorer action. But that's the violating action. That's my point.

That's a theory. And if that's true, that should be prosecuted. I don't think that the idea- Which it was under the Microsoft Internet Explorer action. But that's the violating action. That's my point.

If at the end of the day, that sum is cheaper than you buying the alternative a la carte from third-party vendors, that is a great deal for you as a customer.

If at the end of the day, that sum is cheaper than you buying the alternative a la carte from third-party vendors, that is a great deal for you as a customer.

What we're talking about here is proactively keeping competition. And I think that creates a good competitive dynamic. But, you know, maybe I'm thinking two first principles on this.

What we're talking about here is proactively keeping competition. And I think that creates a good competitive dynamic. But, you know, maybe I'm thinking two first principles on this.

Google Meet does not dominate market share.

Google Meet does not dominate market share.

But sorry, I'm giving you a counterexample to the point about bundling.

But sorry, I'm giving you a counterexample to the point about bundling.

Or they had Google Wave or any of these other nonsense products that didn't work. I'm not calling Google Meat a nonsense product.

Or they had Google Wave or any of these other nonsense products that didn't work. I'm not calling Google Meat a nonsense product.

That's my point. And they've lost market share. They have not won market share by bundling.

That's my point. And they've lost market share. They have not won market share by bundling.

And if you, as an entrepreneur, come up with a much better product than Google Meet, a VC will say, wow, we can go and blow up the side of the hull of that ship. I totally disagree with you.

And if you, as an entrepreneur, come up with a much better product than Google Meet, a VC will say, wow, we can go and blow up the side of the hull of that ship. I totally disagree with you.

Microsoft bought Skype how many years ago for $8.5 billion and then Zoom came around and blew that market up. And Zoom is a standalone, unbundled product and they totally dominated the market while everyone else has been doing bundling.

Microsoft bought Skype how many years ago for $8.5 billion and then Zoom came around and blew that market up. And Zoom is a standalone, unbundled product and they totally dominated the market while everyone else has been doing bundling.

I would argue Figma, Adobe. Adobe has a bundling solution. If you guys have ever tried to sign up for Adobe or end your subscription, it's nearly impossible. Yeah, they just had action taken against them for that. They've got these insane practices. They make you buy everything to get access to one thing. And then Figma comes along and Figma... Figma kills the market.

I would argue Figma, Adobe. Adobe has a bundling solution. If you guys have ever tried to sign up for Adobe or end your subscription, it's nearly impossible. Yeah, they just had action taken against them for that. They've got these insane practices. They make you buy everything to get access to one thing. And then Figma comes along and Figma... Figma kills the market.

They come in and they're like, we're a better product. Better markets do win even with bundling. That's my argument.

They come in and they're like, we're a better product. Better markets do win even with bundling. That's my argument.

It doesn't compete with Photoshop. It competes with some of their other design programs, but that's anyway.

It doesn't compete with Photoshop. It competes with some of their other design programs, but that's anyway.

the humble headquarters of Ohalo Genetics, beautiful lab downstairs. I'll take you on a tour one day. Oh, nice. Can't wait to hear my friends gloat and bloat themselves on the show today after the debate last night. It's going to be insufferable. I'm looking forward to it.

the humble headquarters of Ohalo Genetics, beautiful lab downstairs. I'll take you on a tour one day. Oh, nice. Can't wait to hear my friends gloat and bloat themselves on the show today after the debate last night. It's going to be insufferable. I'm looking forward to it.

If you guys want to put money in, I will open up the round again for you, and you guys can come in.

If you guys want to put money in, I will open up the round again for you, and you guys can come in.

Talk to it, buddy. Go for it. The big loser of last night's debate was the American public. The big winner of last night's debate was probably Russia, China, Iran, maybe the Saudis, licking their chops, watching the utter dysfunction in the leadership of the party leaders in the leadership of the country as it stands today. A notable mention, I will say, was the debate format.

Talk to it, buddy. Go for it. The big loser of last night's debate was the American public. The big winner of last night's debate was probably Russia, China, Iran, maybe the Saudis, licking their chops, watching the utter dysfunction in the leadership of the party leaders in the leadership of the country as it stands today. A notable mention, I will say, was the debate format.

I absolutely love the fact that there were no interruptions, that the mics went mute, that there was no audience, and the moderators didn't kind of challenge back and forth and try and make themselves the show. That was very unique in a presidential debate. So I actually like the debate format.

I absolutely love the fact that there were no interruptions, that the mics went mute, that there was no audience, and the moderators didn't kind of challenge back and forth and try and make themselves the show. That was very unique in a presidential debate. So I actually like the debate format.

Thanks for the interruption, J. Cal.

Thanks for the interruption, J. Cal.

I think that as Sax points out, the biggest issue is that this was front and center, Biden's decline in capacity and aptitude for quite some time. I didn't tell you guys this before, but last October, a senior member of the Democratic Party reached out to me for a, quote, meeting. I took the meeting in October. And of course, it turns out they were asking me for money.

I think that as Sax points out, the biggest issue is that this was front and center, Biden's decline in capacity and aptitude for quite some time. I didn't tell you guys this before, but last October, a senior member of the Democratic Party reached out to me for a, quote, meeting. I took the meeting in October. And of course, it turns out they were asking me for money.

Little did they know, I don't give any money to politics ever. I never have, never will. So their handlers are morons for bringing this person in to come and talk to me. In the meeting, I said, you cannot put Joe Biden forward as your candidate. What the hell are you guys thinking? He's like, no, he is completely stable. He is as sharp as he's ever been. I sent him an email.

Little did they know, I don't give any money to politics ever. I never have, never will. So their handlers are morons for bringing this person in to come and talk to me. In the meeting, I said, you cannot put Joe Biden forward as your candidate. What the hell are you guys thinking? He's like, no, he is completely stable. He is as sharp as he's ever been. I sent him an email.

I'm going to read you what I said to him. This was in the first second week of October. I said, Joe Biden does not appear equipped to be president of the United States. I think the continued heralding of Democratic Party leadership of the president's performance and ability to continue to serve into the next term is mind boggling.

I'm going to read you what I said to him. This was in the first second week of October. I said, Joe Biden does not appear equipped to be president of the United States. I think the continued heralding of Democratic Party leadership of the president's performance and ability to continue to serve into the next term is mind boggling.

His inability to conduct even a basic interview or give a clear and concise statement in a candid setting highlights a clear and obvious decline in function since he took office. It is important for Democratic leadership to find an alternative candidate and message this soon. Doing so, I believe, will buoy fundraising efforts across yada, yada, yada.

His inability to conduct even a basic interview or give a clear and concise statement in a candid setting highlights a clear and obvious decline in function since he took office. It is important for Democratic leadership to find an alternative candidate and message this soon. Doing so, I believe, will buoy fundraising efforts across yada, yada, yada.

I said I would feel uncomfortable with a Democratic majority Senate head in house giving a leader with declining aptitude nearly limitless effect. So I sent this as my response to his follow-up request for money. This was the second week of October. And I wanted to pull up the date on this because it was so apparent back then what was going on. So what's so striking is how long

I said I would feel uncomfortable with a Democratic majority Senate head in house giving a leader with declining aptitude nearly limitless effect. So I sent this as my response to his follow-up request for money. This was the second week of October. And I wanted to pull up the date on this because it was so apparent back then what was going on. So what's so striking is how long

mainstream media and leadership in the Democratic Party have tried to tell an alternative story that was so obviously revealed to be not true last night. And that is the thing that I think makes me say America is losing because there are a few people that are in charge of controlling the narrative. There are a few people in charge who decide who gets to be the candidate.

mainstream media and leadership in the Democratic Party have tried to tell an alternative story that was so obviously revealed to be not true last night. And that is the thing that I think makes me say America is losing because there are a few people that are in charge of controlling the narrative. There are a few people in charge who decide who gets to be the candidate.

And those few people are keeping democracy from working effectively because the raw data, the direct data, the imagery, the video, the media content that has come out of Biden over quite some period of time made it so obvious that he was not in full capacity. And so that was my biggest kind of takeaway is that there's something wrong with the way things are running in this country.

And those few people are keeping democracy from working effectively because the raw data, the direct data, the imagery, the video, the media content that has come out of Biden over quite some period of time made it so obvious that he was not in full capacity. And so that was my biggest kind of takeaway is that there's something wrong with the way things are running in this country.

Yeah. Yeah. And I think, but, because if you- Of course they are. The fact that we all had this information, we've seen the videos, we've seen the interviews, and every time a video or an interview comes out, it has been excused away as, oh, well, he tripped or, oh, you know, it wasn't well edited.

Yeah. Yeah. And I think, but, because if you- Of course they are. The fact that we all had this information, we've seen the videos, we've seen the interviews, and every time a video or an interview comes out, it has been excused away as, oh, well, he tripped or, oh, you know, it wasn't well edited.

And every time there's a story, and then when it's fully exposed, it becomes like, well, my God, the fact that they all flipped so quickly is what's so shocking because this was there. And, you know, if you're on Twitter, You can see these clips being talked about by millions of people, but then media and democratic leadership won't acknowledge them.

And every time there's a story, and then when it's fully exposed, it becomes like, well, my God, the fact that they all flipped so quickly is what's so shocking because this was there. And, you know, if you're on Twitter, You can see these clips being talked about by millions of people, but then media and democratic leadership won't acknowledge them.