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All-In PodcastAll-In Podcast

E129: Sam Altman plays chess with regulators, AI's "nuclear" potential, big pharma bundling & more

(0:00) Bestie intros!: Reddit Performance Reviews (5:14) Quick AIS 2023 update (6:27) AI Senate hearing: Sam Altman playing chess with regulators, open-source viability (21:25) Regulatory capture angle, "preemptive regulation," how AI relates to nuclear, insider insights from the White House's AI summit (43:33) Elon hires new Twitter CEO (48:46) Lina Khan moves to block Amgen's $27.8B acquisition of Horizon Therapeutics (1:02:30) Apple's AR goggles are reportedly being unveiled at WWDC in early June, platform shift potential, how it deviates from Apple's prior launch strategies (1:07:45) Residential and commercial real estate headwinds (1:15:29) Unrest in SF and NYC after two recent tragic incidents ended in death (1:24:20) Soros political motivations for backing progressive DAs Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Intro Video Credit: https://twitter.com/TheZachEffect Referenced in the show: https://techcrunch.com/2023/05/18/psst-gary-marcus-is-happy-to-help-regulate-ai-on-behalf-of-the-u-s-government/ https://twitter.com/chamath/status/1658913074106236931 https://www.mosaicml.com/blog/mpt-7b https://huggingface.co/spaces/HuggingFaceH4/open_llm_leaderboard https://artificialintelligenceact.eu https://futurism.com/the-byte/warren-buffett-ai-atom-bomb https://www.cnbc.com/2023/05/12/nbcuniversal-ad-chief-yaccarino-resigns-as-sources-say-shes-in-talks-to-be-twitter-ceo.html https://www.wsj.com/articles/ftc-poised-to-block-amgens-27-8-billion-deal-for-horizon-therapeutics-a9c1b499 https://www.ftc.gov/system/files/ftc_gov/pdf/2310037amgenhorizoncomplainttropi.pdf https://www.benefitspro.com/2023/05/12/pbms-the-brokers-who-control-drug-prices-finally-get-washingtons-attention https://sharegpt.com/c/O6OKM9D https://www.wsj.com/articles/apple-mixed-reality-headset-9213ac1b https://twitter.com/PalmerLuckey/status/1657828947877560323 https://twitter.com/DavidSacks/status/1658955195450286081 https://www.foxnews.com/us/witness-jordan-neely-chokehold-death-calls-daniel-penny-hero https://www.reddit.com/r/nyc/comments/1njfls/try_to_stay_away_from_the_michael_jackson https://en.wikipedia.org/wiki/1984_New_York_City_Subway_shooting https://en.wikipedia.org/wiki/Guardian_Angels https://www.messynessychic.com/2019/03/26/in-the-shadows-with-nycs-self-styled-guardian-angels https://www.eviemagazine.com/post/media-falsely-representing-jordan-neely-10-year-old-photos-crucial-information https://twitter.com/Jason/status/1655716240500080640 https://www.foxnews.com/politics/george-soros-son-visited-white-house-dozen-times-since-biden-took-office-records-show #allin #tech #news

Jason Calacanis (soundboard / clips)hostDavid FriedberghostChamath Palihapitiyahost
May 18, 20231h 28mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

All-In dives into AI regulation chess, pharma bundling, and chaos

  1. The episode blends humor and Reddit-driven ‘performance reviews’ with substantive debates on AI regulation, big pharma consolidation, real estate stress, and social disorder in major U.S. cities.
  2. A major portion centers on Sam Altman’s Senate testimony, with the besties arguing over whether his pro-regulation stance is principled caution, regulatory capture, or a political pressure-release valve amid rapidly commoditizing open-source AI.
  3. They also dissect the FTC’s move to block Amgen’s acquisition of Horizon Therapeutics as a test case in targeting anti-competitive pharma bundling versus stifling biotech M&A incentives.
  4. The conversation rounds out with commentary on Twitter’s new CEO, Apple’s AR headset ambitions, collapsing office markets in SF, and high-profile vigilante-style incidents in New York and San Francisco tied to crime and mental health failures.

IDEAS WORTH REMEMBERING

5 ideas

AI licensing could entrench incumbents while barely constraining open-source models.

Altman’s call for a dedicated AI regulator and licensing regime is seen as smart ‘chess’ to shape rules and moat OpenAI’s position, but Friedberg and Sacks argue that small, open-source models running on edge devices will be nearly impossible to police, making heavy-handed regulation both impractical and innovation-chilling.

Regulate harmful tactics, not all mergers, in both tech and pharma.

The hosts distinguish between blocking acquisitions outright and targeting specific anti-competitive behaviors like bundling (in both operating systems and drug portfolios); overbroad M&A hostility can cripple exits and dampen early-stage investment, especially in capital-intensive biotech.

AI’s upside is vast, but a tiny set of catastrophic use cases merits serious safeguards.

Chamath frames AI as analogous to nuclear technology: overwhelmingly beneficial in most uses but with a small subset (e.g., engineered bio-toxins, autonomous exploit generation) that could be civilization-level destructive, arguing for KYC-like gatekeeping at the level of large-scale model training runs.

U.S. political elites are largely fear-driven and technically shallow on AI.

Reports from DC suggest the White House and key senators are ‘rabidly negative’ and focused on hobbyhorses (copyright, bias, Section 230) rather than how existing laws already cover many harms; this fosters vibe-based regulation and invites a new AI-regulatory-industrial complex.

Pharma price inflation often stems from intermediaries and bundling, not just R&D economics.

Friedberg highlights that Amgen’s leverage comes from multi-drug bundling with insurers, while Chamath points to PBMs as dominant drivers of drug inflation; both imply that targeted action on contracting practices and PBMs may be more effective than blocking late-stage biotech acquisitions.

WORDS WORTH SAVING

5 quotes

Sam just went straight for the end game here, which is regulatory capture.

David Sacks

This is the first time in modern history I can remember where we’ve invented something, and the people in Silicon Valley are more circumspect than the folks on Wall Street.

Chamath Palihapitiya

AI is like nuclear weapons: 99.9% of use cases are positive, but the 0.1% destroys humanity.

Chamath Palihapitiya (paraphrasing Warren Buffett’s framing)

We’re going to replace permissionless innovation with the need to develop some relationship in Washington to get your project approved.

David Sacks

If you don’t want industry to be in this negative loop where you only work on small diseases, you need to allow these kinds of [biotech M&A] transactions to happen.

Chamath Palihapitiya

Reddit ‘performance reviews’ and meta-critique of the hostsSam Altman’s AI testimony: licensing, regulation, and regulatory captureOpen-source AI models, edge deployment, and the futility of tight controlComparisons of AI risks to nuclear weapons and calls for KYC-style safeguardsFTC vs. Amgen–Horizon deal: pharma bundling, PBMs, and innovation incentivesTwitter’s new ad-focused CEO and Elon’s free-speech agendaHousing and commercial real estate stress in San Francisco and beyondHigh-profile self-defense/vigilante cases and the roles of DAs and mental health policyApple’s upcoming AR headset and the future human–AI interface

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