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E130: DeSantis's Twitter Spaces, debt ceiling, Nvidia rips, state of VC, startup failure & more

(0:00) Bestie intros! (3:03) Sacks goes behind the scenes on the DeSantis Twitter Spaces experience (28:18) Debt ceiling, government spending, and lack of accountability (40:44) Ways to force more government accountability, who really wins from higher taxes (57:46) Nvidia up 30% due to massive Q2 guidance, rebuilding and upgrading cloud infrastructure, understanding phases of value creation in technology (1:06:20) Adobe's new AI product, why they might have overpaid for Figma (1:11:43) State of Silicon Valley, VC, and startups; dealing with failure (1:33:36) Bestie wrap! 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://twitter.com/MarioNawfal https://twitter.com/joebiden/status/1661496322980028423 https://www.wsj.com/articles/ron-desantis-presidential-campaign-twitter-announcement-ead63b25 https://www.politico.com/news/2023/05/25/iowa-voters-dont-think-desantis-twitter-failure-is-real-life-00098777 https://www.vanityfair.com/news/2023/05/ron-desantis-elon-musk-2024-announcement https://www.reuters.com/markets/us/fitch-puts-us-negative-credit-watch-2023-05-24/ https://www.reuters.com/markets/us/slimmed-down-us-debt-ceiling-deal-takes-shape-sources-2023-05-25 https://youtu.be/50MusF365U0 https://www.bloomberg.com/news/articles/2023-05-23/pentagon-can-t-account-for-thousands-of-f-35-parts-the-gao-says https://fred.stlouisfed.org/series/FYFRGDA188S https://en.wikipedia.org/wiki/Authorization_for_Use_of_Military_Force_of_2001 https://twitter.com/friedberg/status/1658163970979823616 https://www.270towin.com/1980_Election https://www.google.com/finance/quote/NVDA https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2024 https://twitter.com/carlquintanilla/status/1661761614918426624 https://en.wikipedia.org/wiki/Huang%27s_law https://twitter.com/scottbelsky/status/1660992735040663553 https://twitter.com/chamath/status/1661467059341914112 https://www.globenewswire.com/en/news-release/2023/05/15/2669326/0/en/Rumble-Acquires-Podcasting-and-Live-Streaming-Platform-CallIn.html https://www.google.com/finance/quote/RUM:NASDAQ #allin #tech #news

Jason CalacanishostChamath PalihapitiyahostDavid Friedberghost
May 25, 20231h 37mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

DeSantis’s Twitter launch, debt crisis, AI boom, and VC reckoning

  1. The hosts open with banter, then dissect Ron DeSantis’s glitchy-but-historic presidential launch on Twitter Spaces with Elon Musk and David Sacks, arguing it marks a major shift away from legacy media toward direct-to-voter, long-form formats.
  2. They dive into the U.S. debt ceiling standoff, questioning ratings agencies, debating the 14th Amendment workaround, and highlighting the deeper structural problem of chronic deficits, unchecked defense spending, and bipartisan addiction to off‑budget wars.
  3. A big segment explores Nvidia’s explosive AI-driven growth, the broader GPU/data-center arms race, and how value in AI will likely migrate over time from chips to custom silicon and then to software and services.
  4. They close with a candid look at the brutal state of startups and venture capital: cram-down rounds, board failures, founder burnout, and how to psychologically survive a power-law world where most efforts fail but a few wins make everything worthwhile.

IDEAS WORTH REMEMBERING

5 ideas

Twitter Spaces signaled a viable alternative to mainstream media for political launches.

Despite 15–20 minutes of technical failures, DeSantis’s Twitter Spaces event drew millions of live and replay views, showcasing how candidates can bypass legacy TV, speak at length, and be simultaneously reframed by many parallel commentary rooms.

DeSantis’s composure under technical pressure may strengthen his presidential brand.

Sacks reports DeSantis remained calm, upbeat, and substantive despite the glitches—behavior the hosts contrast with Trump’s real-time angry posts—suggesting he can appear “cool under fire” to donors and moderates reassessing him.

Long-form, uncropped interviews are increasingly vital for evaluating political candidates.

The group argues town-hall–style conversations and multi-hour podcasts (like with RFK Jr. and DeSantis) give voters a far better sense of policy depth and character than 30‑second ads or cable hits, and they urge more candidates to embrace such formats.

The debt ceiling drama masks a deeper, bipartisan failure to control structural deficits.

They dismiss rating-agency theatrics, note that downgrades have had little real effect, and focus instead on the U.S. running ~$2T annual deficits, off‑book war spending, and a political system that rarely kills failing programs or passes a truly balanced budget.

Defense spending lacks real accountability, enabling waste and endless optional wars.

Citing Jon Stewart’s critique and GAO findings, they highlight that the Pentagon has never passed an audit, can’t track key assets, and routinely funds wars (Iraq, Afghanistan, Ukraine) outside the core defense budget, avoiding hard prioritization.

WORDS WORTH SAVING

5 quotes

This was a really seminal moment in further divorcing ourselves away from the mainstream media.

Chamath Palihapitiya

If this was a political rally that started 20 minutes late, would anybody have said that was a disaster?

David Sacks

We spend the money and then argue about whether we’re going to pay the credit card bill.

David Sacks

There is a lot of failure going on in Silicon Valley right now… everyone is experiencing some degree of failure in this environment.

David Friedberg

When things go wrong, they go wrong in bunches… the only thing you can do in those moments is realize it would be so much worse to just be on the sidelines.

Chamath Palihapitiya

Ron DeSantis’s presidential announcement on Twitter Spaces with Elon Musk and David SacksDisintermediation of mainstream media and rise of long-form, direct political communicationU.S. debt ceiling negotiations, the 14th Amendment, and structural deficit issuesDefense spending, lack of Pentagon accountability, and off‑book war fundingNvidia, GPUs, data-center demand, and the evolving AI hardware landscapeValuation, competition, and phases of value capture in the AI ecosystemCurrent state of venture capital, startup failures, cram-downs, and founder psychology

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