Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

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All-In with Chamath, Jason, Sacks & Friedberg 1h 29m 5 speakers 8 chapters transcribed
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What is the main topic discussed in this episode?

Jason Calacanis 0:00
All right, everybody, welcome back to the number one podcast in the world.

What is the significance of EA's $55 billion acquisition?

Jason Calacanis 0:03
Of course, that's the All In podcast. I'm your host, Jason Calacanis. With me again, your chairman and dictator, Chamath Palihapitiya, and the sultan of science, David Freberg. David Sachs will be calling in from the SCIFT. He's in some deep negotiations for the United States of America.
David Friedberg 0:19
From the skiff.
Jason Calacanis 0:20
It's not, there's no T at the end, it's just skiff.
David Friedberg 0:22
No T, no T. Oh, skiff to my left.
Jason Calacanis 0:24
Okay, he's in a skiff doing something with his BlackBerry and a bunch of generals. Nobody knows what's going on in Sax's life, but he'll crack in from the skiff.
David Friedberg 0:33
any moment now, but we'll start with... You guys see that Pete Hegs have announced a PT and a fitness test for the generals. Could you imagine if Sachs had to pass a PT?
Jason Calacanis 0:42
Oh, my God. They should totally make it for the administration. Sachs, we need you to do one push-up, Sachs.
Chamath Palihapitiya 0:48
What do they do if you don't pass?

How does SPAC 2.0 differ from traditional IPOs?

Jason Calacanis 0:50
They remove you from your... You probably get a cure period. We should do a push-up contest. That would be great. Winner take all. How many push-ups can you do, Freeburn?
David Friedberg 0:58
You have to adjust for people's heights. I'm the tallest of all of you. I have a much longer limb system. What does that mean? 20 for me is much harder than 20 for you, Jason.

What opportunities exist in the AI rollup market?

David Friedberg 1:07
I mean, 20 is easy for me at this point. You're like Bilbo Baggins. It'll take you like eight seconds to put on.
Jason Calacanis 1:13
I'm a tank, man. Bilbo Baggins. How about Thor? I'm like Thor at this.
Chamath Palihapitiya 1:17
I'm going to my Daniel Craig era.
Jason Calacanis 1:18
J. Cal has an elbow to wrist to weight ratio that's highly advantaged.

What insights does David Sacks bring to the conversation?

Jason Calacanis 1:23
All right, let's get started. Enough shenanigans.

How are OpenAI and Meta reshaping content creation?

Jason Calacanis 1:26
EA is being taken.
Chamath Palihapitiya 1:27
What is your arm length, J. Cal? Do you have a good arm length?
Jason Calacanis 1:29
My wingspan? My wingspan technically is enough to kick your ass with one hand tied behind my back.
Unknown 1:36
That's actually what it is. brain man david sacks and instead we open source it to the fans and they've just gone crazy

What impact does open source AI have on the industry?

Jason Calacanis 1:53
Okay, EA is being taken private in the largest take private deal in history, $55 billion. Man, that just stacks up to, let's see, Texas Power Company in 2007, HCA Healthcare, $33 billion. This is a large deal. Investors in the Take Private include Saudi's PIF, Silver Lake, and friend of the pod, Jared Kushner's Affinity Partners. $210 a share, $25 premium on the stock. Kushner's largest LP and Affinity, as you know, Saudi PIF as well. The PIF has invested over $900 billion. You know many of the things, Lucid Motors, Live Golf, the SoftBank Vision Fund, Uber back in the day, Newcastle, the Premier League. Electronic Arts obviously is in the video game business. They were founded at Sequoia's office in 1982 in San Mateo.
Jason Calacanis 2:49
Shout out to our guy, Rulof Botha, who joined us for the All In Summit. Their headquarters is still in Redwood City. Madden NFL, The Sims. Oh, that's why you have the background The Sims this week. Need for Speed. Pretty insane industry. deal here, Chamath, and this is a high watermark for private equity any way you look at it. And the PIF loves games. They are the biggest shareholder in Nintendo, Savvy Games, Scopely. I mean, they just keep buying games.

How are states approaching AI regulation amidst federal control?

Jason Calacanis 3:17
What are your thoughts here on this deal happening right now?
David Friedberg 3:23
I really like it. Let me give you the bull case, and then let me give you what the bear case would have to believe. The thing to remember is that video games is the anchor pillar of usage across the entire internet. Last week at our poker game, we had Matt Bromberg join in just for dinner, who's the CEO of Unity. And Alex Blum, who's the COO of Unity. And one of the stats that they shared with us at dinner was it's about 3 billion DAO play games. Wow. Exactly. It's an incredible, incredible stat. So in many ways, it's much bigger than social networking and social media or as big. And in that, EA is sort of this 800-pound gorilla. But I think the problem is, is that they've always been these gatekeepers.
David Friedberg 4:10
And I think that there's a risk and a chance that these gatekeepers get eroded away. Specifically who I'm talking about are folks like Microsoft and Xbox. And at the point that this company is going private, there's some really interesting things that are happening.

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