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All-In with Chamath, Jason, Sacks & Friedberg 55 min 6 speakers transcribed
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Jason Friedberg 0:00
All right, everybody. Chamath is here. I'm here. Freeberg's here. But Saxxy Poo, he was up late at the White House. We'll show some pictures later. He couldn't make it today. But let's get started. We wanted to get you a show and we wanted to get it to you on time for your weekend. Let's start with Michael Burr in his shirt. So you guys know Obviously, Michael Burry, he's the capital allocator from the big short, and he just deregistered his firm with the SEC. He made a big bet against AI and Palantir. He disclosed the shorts against Palantir a couple of weeks ago. They weren't huge. CNBC apparently reported that the value was like $900 million. Burry says CNBC was wrong, that it was just $9 million. But he had a really interesting...
Chamath Palihapitiya 0:44
accusation, and it's related to what we've been talking about here on the show with the build-out of— I'm sorry, but can we just talk about the complete and total financial illiteracy of the mainstream media? How do you confuse $9 million and $900 million? How do you do that?
Jason Friedberg 1:03
I think maybe it's the cost of the shorts versus the value of the stock that the shorts represent. No, it's because there's 100 shares per option. Oh, I see. Yes, because the options have 100. They applied a multiple and they got it wrong.
David Sacks 1:18
Got it.
Jason Friedberg 1:18
Okay. So the math, the calculator.
Chamath Palihapitiya 1:23
It's not that they got the calculator wrong. It's just that they're so uninvested. in assets that they don't know how asset markets work, I think is the more logical explanation. Meaning if you've ever bought a home, you probably know what people are talking about when they're talking about financial elements related to a home. But I guess if you've never owned a stock or you've never hedged a position or had an option, you don't really know how any of it works. But then the problem isn't the person that wrote it, then there's no fact checking and the whole thing just gets an entire news cycle on its own. Which, by the way, helped his short, and it never should have. Because if you heard that some random dude had a $9 million bet against the market, you would think nothing of it.
Chamath Palihapitiya 2:08
But then to manufacture a headline about somebody who had a moment, it was... almost 20 years ago, but whatever. He had a moment where he was kind of right. It's short the market and you get it two orders of magnitude wrong. That seems quite wrong.
Jason Friedberg 2:23
Yeah. And to your point, there is a ramification of it, which is it created a headwind against the already AI bubble, which was deflating after Brad Gerstner popped it.
Chamath Palihapitiya 2:37
I'll take a walk down Conspiracy Corner. Maybe the actual person is not economically illiterate, but the exact opposite, and then writes the error on purpose, knowing that whoever has to review it has absolutely no idea what they're talking about, and then they themselves are short. So I wonder if CNBC should investigate whether this person actually had a trade on.
Jason Friedberg 2:56
Oh, there you go. Conspiracy corner. Let's get our tinfoil hats on. The individual.
Chamath Palihapitiya 2:59
You're either a complete moron, and you don't know how the financial markets work, in which case you probably should be working at some other media outlet, not CNBC covering the markets, or... you know how well they work and you know the people above you have no idea. And so you yourself shorts the market. You're basically copying the Burry trade, but then you rewrite the headline to look like it's two orders of magnitude bigger, which actually could have moved the market if you saw a yard short I mean, yeah, like that would have probably gotten my attention had I read it. A billion dollars is, you know, reasonable position to have.
Jason Friedberg 3:36
He was accusing also, he's got the Palantir short, but on the AI side, he was saying, hey, Meta and Oracle have been cooking the books with 176 billion in hidden depreciation to inflate earnings by over 20% in 2028. And so here's the chart. Basically, we've talked about what is the reasonable life of an H100 of an NVIDIA chip or really an NVIDIA server, if you think of it that way. Do these things have a three-year lifespan, a four, five, six-year lifespan?

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