December 5 2025
- OpenAI Code Red
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More competitors doing well
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Anthropic beating them in enterprise revenue
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Google coming for them
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OpenAI leading consumer, but Anthropic leading enterprise and API
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Sign of vibrant and dynamic competitive market
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Google did this a couple of years ago and now Gemini is good
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Google did this with Project Canada way back when Microsoft launched Bing
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This worked for the US with the Manhattan Project
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Tried and tested tactic - responding to an impending threat
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Sam deserves credit for doing this - need to treat situations seriously
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Clearly the ecosystem is very competitive
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5 different companies
- ChatGPT - leading in consumer
- Anthropic - best coding assistant
- xAI - best at current events
- Meta has deep pockets
- Google doing really well with Gemini
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Goldilocks scenario - lots of competition and lots of growth
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Competition is what brings out the best in the American system
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ChatGPT decline in market share is increasing in velocity
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Is Sam putting a target on OpenAI because of too much deal making?
- People getting their feelings hurt?
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OpenAI competitors - Google, Microsoft, Meta (maybe NVidia, Broadcom, Apple also) have a lot of cash - which they will spend - so maybe they will subsidize their product
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In AI - battle isn’t going to be won or lost on LLMs - there are some non-text based models that will have much wider differentiation - so this story isn’t written yet
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Defensive mindset is what was hurting Google - they are freer now - that same mindset seems to be hurting OpenAI now
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OpenAI’s rise is the greatest blessing for Alphabet
- The attention hurt their product capability - fundamentally damaged the product
- Opposite happened at Google - they were given permission by the board to take risks and make a great product
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- All In Vegas recap
- NYT hit piece on Sacks
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Immediate support from lots of folks
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One of the few things Sam and Elon have agreed on lately
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NYT just launders the views of their anonymous sources (left wing Democrats) - everyone sees through this sham at this point
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NYT didn’t do any vetting - Sacks already disclosed everything in his ethics letter
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He initiated or completed divestment of over 99% of his holdings - Office of Government Ethics civil servants signed off on his
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You can create a blind trust only if you have adult children - so he divested instead
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The headline was the goal - to pressure Sacks and everyone else who looks like Sacks
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Clear playbook - if you have experience we will paint you as tainted - if you don’t we will co-opt you (like Zohran Mamdani, Lina Khan with no experience) and lionize you - they want inexperienced morons in the government
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Thomas Jefferson predicted that people staying in government for long will be bad
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NYT is trying to criminalize policy disagreements
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All In has not benefited - lot of guests are not coming because of potential association with Trump administration
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NYT fact check sent to Sacks had a made up dinner
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The people who want to make their career in politics are the ones who self deal - not the ones who serve like Sacks
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- New poverty line
- Michael W Green story about how it should be much higher and that older metrics don’t apply (new realities - costs of childcare, etc)
- Clearly housing and childcare are a huge problem
- This is the spiral of socialism
- Billionaires tax
- 5% tax/increase on employees making more than $125000 announced in WA
- Columbia sportswear recommended to leave Oregon
- Norway tax announced in 2022 led to $54B net worth leaving the country - and they lost more tax revenue than what they were planning to raise
- This is how the Democrats take over riding this socialism wave into mid terms and the presidency after that
- Look at moving to Texas or other countries
- This is what happens when you have progress - too much progress leads to too much inequality
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