All-In E168: Can Google save itself? Abolish HR, AI takes over Customer Support, Reddit IPO teardown

Google's Gemini Controversy & Structural Issues

• Google's Gemini AI continues to face backlash over biased image generation, with the stock down 5% since last week
• Sundar Pichai sent a memo acknowledging the responses were "completely unacceptable" and promising structural changes
• The team discussed how Google's internal structure, with "DEI commissars" present in meetings, may be preventing honest feedback and innovation
• Friedberg noted that investors are more concerned about Google's ability to compete in AI than the DEI issues specifically
• Google's stock trades at just 17x 2025 earnings, cheaper than other big tech companies despite continued growth

Klarna's AI Customer Service Success

• Klarna announced AI assistants are now doing the work of 700 full-time agents
• Key metrics:
  • Issue resolution time reduced from 11 minutes to 2 minutes
  • Customer satisfaction on par with human agents
  • 25% drop in repeat inquiries
  • Expected $40M profit increase this year
• The team discussed broader implications for customer service jobs and potential opportunities for displaced workers
• Chamath highlighted how this affected Teleperformance's stock, which lost $1.7B in market cap on the news

Reddit IPO Analysis

Key metrics from the S1:

• 2023 revenue: $804M (up 21% YoY)
• Net loss: $91M (improved from $159M in 2022)
• 86% gross margin
• 76M daily active users (up 27% YoY)
• $3.42 average revenue per user
• $1.2B in cash
• Novel direct share program for moderators

The team discussed valuation concerns, particularly around user growth sustainability and monetization challenges compared to platforms like Facebook.

Apple Ends Project Titan

• Apple reportedly shutting down its decade-long electric vehicle project
• 2,000 employees were working on the project
• Most team members will be transferred to Apple's generative AI division
• The team speculated this makes sense given AI is more core to Apple's business than automobiles

Notable Discussion Point: HR Departments

Chamath shared his perspective on why he doesn't have HR departments in his companies, instead preferring:

• Using external law firms for serious issues
• Empowering employees to design their own benefits
• Letting managers handle hiring directly
• Focusing on performance and meritocracy