All-In E171: DOJ sues Apple, AI arms race, Reddit IPO, Realtor settlement & more

DOJ Sues Apple

• DOJ filed Sherman Act lawsuit against Apple targeting 5 key areas: super apps, cloud gaming, messaging, smartwatches, and digital wallets
• Main argument is Apple uses "shape-shifting" App Store rules to block competition rather than compete on merit
• Divided opinions on lawsuit's merit:
  • Chamath: Political timing, Apple has been losing recent cases (Epic, Spotify)
  • Sacks: No clear "smoking gun" evidence
  • Friedberg: Market should decide, not government intervention
  • Jason: Apple consistently abuses power, needs checks and balances

Microsoft Acquires Inflection AI Team

• Unusual "acquihire" structure where Microsoft hired most of Inflection's team but didn't buy company
• CEO Mustafa Suleyman becomes CEO of new Microsoft AI division
• Panel views this as likely a bailout of investors (Reid Hoffman, Bill Gates) who had invested $1.5B
• Deal structure may be designed to avoid antitrust scrutiny

Saudi $40B AI Fund

Detailed discussion of how to deploy the funds:

• Sacks: Invest across all layers of AI stack (chips, foundation models, infrastructure, applications)
• Friedberg: Focus on enterprise applications with clear ROI
• Chamath: Reserve 50% for follow-on funding, use majority to buy cloud compute credits to give to startups

Reddit IPO

• Went public at $8B valuation, stock up 50% on first day
• Panel sees this as sign of speculative market behavior
• Discussion of broader market conditions and Fed policy

Science Corner

• New Hubble/Webb telescope data shows universe expanding at different rates in different regions
• First successful pig-to-human kidney transplant using CRISPR
• Neuralink patient successfully playing chess with brain interface

The episode showcased significant differences in opinion on government intervention in tech markets while finding general agreement on the transformative potential of AI and scientific breakthroughs.