E122

E122: Is AI the next great computing platform? ChatGPT vs. Google, containing AGI & RESTRICT Act

2023-03-31 spoken.md · speaker-labeled ▶ watch ← E121 all episodes E123 →

2
ideas born
11
ideas moved
20
captures · 4 voices
4
dissenting
+109.4
conviction added
-135.9
decay · 117 silent

Every number here is replayed from score_events — the same ledger the pool ranks on. Decay is what the 117 ideas nobody mentioned gave up this week; it applies only when an episode is processed.

Tier crossings

conviction thresholds crossed by this episode — 65 / 45 / 15 · ideas born here show where they landed. why 65 isn't always green

▲ +5.1 🤖 OpenAI is 2023's biggest winner — Microsoft deal inevitable watch green threshold 63.5 → 68.6 still ember — green gate not met
▲ +12.0 🤖 Generative AI is the next Silicon Valley bubble cycle watch green threshold 53.0 → 65.0 still ember — green gate not met
▲ +16.9 🤖 Natural-language chat disrupts Google's search box ember watch 44.8 → 61.7
▲ +35.2 📈 Code-for-hire outsourcers displace white-collar labor first born at ember 35.2
▼ +8.7 🤖 ChatGPT plugins make OpenAI the next great computing platform born at dormant 8.7

Kill dates that landed since E121

2 hit · 0 partial · 2 miss — windows that closed after 2023-03-24 and up to 2023-03-31, auto-scored against price data and never hand-set. verdict · R · α

ideaverdictRαclosed
📈 Late-stage private marks reset 30-60% — down-round IPOs become the norm HIT +37.9% +49.7 2023-03-26
📈 Quality software grows through the de-rating — Snowflake MISS -42.1% -30.4 2023-03-26
📈 Rate-arbitrage fintechs implode as their cost of capital rises HIT +38.0% +49.7 2023-03-26
🤖 The ad duopoly ratchets prices and makes its numbers through the startup bust MISS -25.5% -13.7 2023-03-26

Who moved the board

each voice's force on conviction this episodesupports and opposes, weighted exactly as the replay applied them · share = % of this episode's movement

Chamath
Chamath
8 captures · 44% of movement · 1 idea born
+68.6 / -18.9 → net +49.7
Sacks
Sacks
6 captures · 27% of movement · 1 idea born
+54.3 → net +54.3
Friedberg
Friedberg
3 captures · 18% of movement
+10.7 / -25.8 → net -15.1
Jason
Jason
3 captures · 10% of movement
+20.6 → net +20.6

What got argued (11 ideas)

ordered by how hard each idea moved · quotes are verbatim from the transcript, timestamps deep-link into the episode

NEW ACN 📈 Code-for-hire outsourcers displace white-collar labor first closed 7 CONTESTED ▲ +35.2 0.0 → 35.2

Chamath's named call on where AI labor displacement shows up in the numbers before anywhere else: the code-for-hire scale shops - TCS, Accenture (~750k employees), Cognizant - have the most immediate and most shareholder-rewarded incentive to use LLM coding tools to squeeze opex, lift utilization rates and expand profitability, so they are the first firms to displace human labor at scale, ahead of law firms, accounting firms or any other white-collar vertical. AI eliminates unit testing and most routine coding, so the same or fewer engineers deliver more; it will be 'less visible in other companies'.

plays ACN ·primary CTSH INFY evals 2024-03-31
Chamath
Chamath support ×3 explicit_prediction ▶ 1:01:18
But what I would tell you, Jason, to answer the white collar question is I think there are a handful of companies you need to look at exclusively because they will be the first ones to really figure out how to displace human labor. And that is TCS, so Tata Consulting Services, Accenture, Cognizant.
GOOGL 🤖 Only foundation models can disrupt search - and Google is too far ahead closed 39 CONTESTED ▲ +25.3 15.6 → 40.9
Jason
Jason support ×3 explicit_prediction ▶ 32:10
And then when they make BARD a default, you know, a little snippet on your Google search return page or BARD is built into YouTube or Chrome or Android or the Play Store, they're going to roll right over ChatGPT because they have billions of users already.
Chamath
Chamath support ×2 sentiment ▶ 33:14
Google's incentive is to usurp ChatGPT's usage by inserting something inside of their existing distribution channels to suppress the ability for you to want to go to the app.
GOOGL 🤖 Natural-language chat disrupts Google's search box closed 0 CONTESTED ▲ +16.9 44.8 → 61.7
Friedberg
Friedberg support ×3 explicit_prediction ▶ 17:37
This closes the loop between search and commerce in a way that Google cannot and does not do today. And I think that's what makes it very powerful.
Sacks
Sacks support ×3 explicit_prediction ▶ 31:27
And I think that ChatGPT will start by eating a substantial portion of search, because again, you don't have to go through the 20 links. It just gives you the answer.
NVDA 🤖 Generative AI is the next Silicon Valley bubble cycle closed 24 CONTESTED ▲ +12.0 53.0 → 65.0
Chamath
Chamath support ×2 sentiment ▶ 25:17
And after all of this money that's been burned in crypto land and NFTs and all of this Web 3 nonsense, to yet again whip up the next hype cycle, I think doesn't serve us well.
Sacks
Sacks support ×3 explicit_prediction ▶ 55:12
If you look at 70% of the last YC class was ready, all AI startups. I'm sure the next one will probably be 95%.
NEW MSFT 🤖 ChatGPT plugins make OpenAI the next great computing platform closed 25 CONTESTED ▲ +8.7 0.0 → 8.7

Sacks' call the week OpenAI shipped ChatGPT plugins: ChatGPT is not just an intelligence API in the mold of Stripe, it is a destination site and the most important developer platform since the iPhone and iOS - arguably the biggest ever. Plugins let it intermediate apps, browsers, search and commerce, and the combination of hundreds of millions of users, the browsing plugin and the retrieval API (developers voluntarily handing over proprietary knowledge bases) compounds a lead that grows over the next year, until applications are first incentivized and then competitively forced to participate. The rest of the table takes the other side: Chamath sees no natural blocker and would stay patient, Friedberg doubts the plugin network effect is durable when a 700GB model can be forked.

plays MSFT ·primary NVDA SMH evals 2024-03-31
Sacks
Sacks support ×3 explicit_prediction ▶ 15:11
Yeah. I mean, I think this is the most important developer platform since the iPhone and the launch of iOS in the App Store, and I would argue maybe ever in our industry, certainly since the beginning of the internet.
Chamath
Chamath oppose ×2 sentiment ▶ 20:32
As an investor, I think it's important to just stay a little patient because it's not clear to me that there are any natural blockers.
Friedberg
Friedberg oppose ×2 sentiment ▶ 56:48
Is there enough of a network effect in the plug-in model, as Sacks pointed out, to really give OpenAI the sustaining competitive advantage? I'm not sure.
IGV 🤖 SaaS gets replaced by MaaS — Models as a Service closed 22 CONTESTED ▲ +8.7 35.6 → 44.3
Chamath
Chamath support ×2 sentiment ▶ 1:01:18
If you take a workflow management tool for things like design and imagery and you reduce it by an order of 90%, it's like what is that app experience worth?
ADBE 📈 Adobe/Figma at $20B is a good deal - the 15-20% selloff is an overreaction closed 0 CONTESTED ▼ -8.0 14.6 → 6.6
Chamath
Chamath oppose ×1 sentiment ▶ 1:01:18
This is yet another reason that Figma really needs to close the acquisition from Adobe. I mean, it's like the value of these apps are just getting gutted.
AAPL 🤖 Models commoditize — proprietary data is the only AI moat closed 4 CONTESTED ▲ +7.6 79.9 → 87.5
Sacks
Sacks support ×2 explicit_prediction ▶ 8:08
I thought it would be an interesting tactic for AI startups to use if they're trying to get a hold of proprietary training data.
Chamath
Chamath support ×3 explicit_prediction ▶ 20:32
So the point is, I think we've talked about this for a while, but all of these models will converge in the absence of highly unique data, right? What I've been calling these white truffles. So if you can hoard white truffles, your model will be better. Otherwise, your model will be the same as everybody else's model.
Jason
Jason support ×2 explicit_prediction ▶ 23:31
If you look at certain data sets, Reddit, Stack Overflow for programming, and Quora, these things are going to be worth a fortune.
MSFT 🤖 Foundation models are a big-tech oligopoly - the substrate gets given away closed 30 CONTESTED ▼ -6.8 54.8 → 48.0
Chamath
Chamath support ×2 sentiment ▶ 20:32
And then you have the distribution endpoints of which there are many whose economic incentives are very high, right? So Facebook doesn't want to just sit around and have all this traffic go to ChatGPT.
Friedberg
Friedberg oppose ×2 explicit_prediction ▶ 56:48
The model runs on 700 gigs. That's less data than fits on my iPhone. So I could take that model, I could take the parameters of that model, and I could create an entirely new version, I could fork it, and I could do something entirely new with it.
MSFT 🤖 OpenAI is 2023's biggest winner — Microsoft deal inevitable closed 32 CONTESTED ▲ +5.1 63.5 → 68.6
Sacks
Sacks support ×3 explicit_prediction 12mo horizon ▶ 26:38
However, I actually think that OpenAI has demonstrated now with these platform features that it has a lead, a substantial lead, and I actually think that lead is likely to grow in the next year.
META 🏛️ TikTok crackdown impairs ByteDance and hands share back to US platforms closed 11 CONTESTED ▲ +4.8 78.4 → 83.2
Sacks
Sacks support ×1 sentiment ▶ 1:22:30
It should be one sentence, which is that app stores are prohibited from allowing TikTok to be an app in their store. That's what they do in India. That's it. Case closed, game over.
Jason
Jason support ×1 sentiment ▶ 1:22:40
I think India is doing okay, right? They block like a hundred Chinese apps, and I think their society is still functioning.

Episode digest

written during extraction and stored in data/extractions/ep122.json — the auditable source of truth, including everything market-adjacent that did not earn a capture

A dedicated AI episode built around OpenAI shipping ChatGPT plugins. Sacks table-pounds the biggest new call: plugins turn ChatGPT into a destination site and the most important developer platform since iOS ('maybe ever'), OpenAI's lead is substantial and grows over the next year, and it eats a chunk of search, browser and app usage - the other three all push back, Chamath on 'no natural blockers, stay patient, we are six weeks in', Friedberg on a forkable 700GB model with no durable network effect, Jason on Google bundling BARD into YouTube/Chrome/Android and rolling right over it. The Google pair got worked hard from both sides: Friedberg reinforced his own chat-disrupts-search thesis (plugins close the search-to-commerce loop Google can't, and explicitly walked back the 'search UI is defensible' half of his E115 inference-cost argument), while Chamath partially swung back toward his own bullish-Google thesis he had reversed at E115 - arguing incumbent distribution and $5-6T of market cap incentives suppress ChatGPT, though he refused to call a winner and warned Google is 'toast' if middle management doesn't move. Chamath's proprietary-data moat ('white truffles') got its strongest restatement yet, with Sacks' give-to-get blog post and Jason's Reddit/Stack Overflow/Quora M&A call on the same side; Jason's data-islands and Sacks' plugins-are-promiscuous argument was the episode's other live disagreement. New idea coined for Chamath's only concretely tradeable labor call: TCS, Accenture and Cognizant displace white-collar labor first because shareholders reward the opex squeeze. The 25-minute jobs debate mostly re-litigated Friedberg's creative-production thesis (support from Sacks and Jason, a strength-3 oppose from Chamath on AI supplanting human judgment in closed-loop systems - he disclosed one in front of the FDA now). Diarization CLEAN (Jason top talker at 89, all four present, addressed-by-name and fingerprint tests pass, no time gaps); one local bleed at 1:04:04 where a Sacks-labelled turn opens 'Now, wait a second, Sacks' - not used in any quote. The FLI pause-letter segment was almost entirely untradeable safety philosophy and the RESTRICT Act segment was civil-liberties analysis with no market channel, so only two low-strength TikTok-crackdown mentions came out of it.