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All-In PodcastAll-In Podcast

E161: US strikes Houthis, market instability, Q1 rate cuts in doubt, Carta's major mishap, DEI

(0:00) Bestie intros! Friedberg's jumper (1:21) US and its allies strike Houthi targets in Yemen (16:24) Markets: Q1 rate cut looks unlikely, December CPI print slightly hot, soft landing in jeopardy? (29:46) Carta's mistake, why verticalized SaaS tools could be in trouble, Chamath's 8090 incubator (51:02) Why and how Sacks is taking on Slack, where Carta went wrong with founders (1:05:17) DEI debate: cultural significance, real solutions, Motte-and-bailey Follow the besties: https://twitter.com/chamath https://twitter.com/Jason 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/SpeakerJohnson/status/1745642200866738254 https://www.reuters.com/world/middle-east/saudi-arabia-calls-restraint-after-air-strikes-yemen-2024-01-12 https://twitter.com/DavidSacks/status/1745723423396118593 https://twitter.com/DavidSacks/status/1745604701654298826 https://www.imdb.com/title/tt0120885 https://twitter.com/Jason/status/1745514413782917262 https://www.cnn.com/2024/01/12/politics/joe-biden-lloyd-austin-yemen-houthis/index.html https://www.pbs.org/newshour/show/why-the-white-house-didnt-know-about-defense-secretary-austins-hospitalization https://www.bloomberg.com/news/articles/2024-01-11/fed-s-mester-says-march-is-probably-too-early-for-a-rate-cut https://www.reuters.com/business/finance/citi-swings-18-billion-loss-slew-charges-2024-01-12 https://layoffs.fyi https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcsstus1&f=m https://twitter.com/karrisaarinen/status/1743398553500971331 https://henrysward.medium.com/how-we-handle-captable-information-c98d85d79277 https://henrysward.medium.com/should-carta-facilitate-secondary-trading-c319e0c9f080 https://twitter.com/chamath/status/1744414462986375440 https://twitter.com/coffeewithone/status/1744488896766042277 https://twitter.com/chamath/status/1745542094696145103 https://once.com https://twitter.com/jasonlk/status/1745552662572208473 https://twitter.com/MattWalshBlog/status/1742583950944432607 https://www.oscars.org/awards/representation-and-inclusion-standards https://wdwnt.com/2023/04/disney-ceo-bob-iger-doubles-down-on-inclusivity-and-diversity-during-shareholders-meeting https://www.cnbc.com/2023/11/30/disney-ceo-bob-iger-says-movies-have-been-too-focused-on-messaging.html https://www.dailymail.co.uk/news/article-4722408/Brian-Truitt-ridiculed-Dunkirk-diversity-review.html https://www.nytimes.com/2022/04/23/business/pilots-diversity.html https://twitter.com/Jason/status/1735164131806986441 https://www.thecollegefix.com/umich-now-has-more-than-500-jobs-dedicated-to-dei-payroll-costs-exceed-30-million https://en.wikipedia.org/wiki/Motte-and-bailey_fallacy #allin #tech #news

Jason CalacanishostDavid FriedberghostChamath PalihapitiyahostGuestguest
Jan 12, 20241h 38mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

War, Rates, Carta Chaos, DEI Backlash: All-In’s Turbulent Tour

  1. The episode opens with analysis of U.S.-led strikes on Houthi targets in Yemen, debating strategic futility, escalation risk with Iran, and whether the Biden administration is engaging in a political “wag the dog” maneuver. They then pivot to macroeconomics, arguing that sticky inflation, geopolitical oil risks, and rising layoffs make early 2024 Fed rate cuts unlikely and point instead to a “bumpy landing.”
  2. A major segment dissects Carta’s scandal: using privileged cap table data to solicit secondary share sales, why that’s a profound trust violation, the lack of true software defensibility in cap-table SaaS, and how AI-enabled competitors can now clone 80% of such products at 10% of the price. This leads to Chamath outlining his new 8090 incubator aimed at systematically undercutting overpriced SaaS, and Sacks describing his forthcoming Slack competitor, Glue.
  3. In the final third, the group tackles DEI and culture wars in entertainment and institutions, critiquing Disney’s politicization of Star Wars, new Academy Award diversity standards, and large DEI bureaucracies in universities and companies. They argue for skill- and merit-based selection in high-stakes professions (e.g., pilots, surgeons), more focus on early education and family stability, and warn about legal and practical contradictions in contemporary DEI practice.

IDEAS WORTH REMEMBERING

5 ideas

U.S. strikes on Houthis likely escalate conflict without restoring deterrence.

Sacks argues the Yemen strikes won’t stop Houthi attacks on shipping, risk wider war with Iran, and shift retaliation toward the U.S., despite the economic impact falling more on Europe and China than America.

Don’t over-price in aggressive 2024 rate cuts; expect a bumpy landing.

Sticky components of CPI (like lagged car insurance costs), ongoing geopolitical risks to oil, and a visible uptick in layoffs suggest the market’s optimism on rapid Fed easing may be premature.

Geopolitically driven oil shocks are more dangerous now given a depleted Strategic Petroleum Reserve.

The SPR is at its lowest level since the early 1980s after being used to dampen gas prices, leaving the U.S. with less buffer if Middle East conflict disrupts supply and spikes inflation again.

Data custodians that monetize privileged information without consent will lose their core business.

Carta’s move to tap cap-table data to source secondary trades broke the implicit and explicit trust of founders, demonstrating that in infrastructure roles, long-term SaaS value depends more on trust than on adjacent monetization schemes.

Many SaaS categories are vulnerable to rapid, low-cost AI-driven disruption.

Chamath contends cap-table management is “process automation” with weak moats, and that new tools plus offshore teams can now recreate 80% of feature sets at 10% of the incumbent’s price; Carta clones emerging in days illustrate this.

WORDS WORTH SAVING

5 quotes

“We’re incurring this cost and risk onto ourselves… for shipping lanes that mostly matter to Europe and China.”

David Sacks

“I think what we’re realizing is that there are few difficult things in software… and as a result, every product will see a ton of competitors.”

Chamath Palihapitiya

“The only reason startups give their data to Carta is because they trust them to keep it private.”

David Sacks

“Software that doesn’t have a fundamental lock-in does not have pricing power.”

Chamath Palihapitiya

“As soon as you tell somebody they can’t get the job even though they’re the most qualified because of their race or gender, that is racism or sexism.”

David Sacks

U.S./allied strikes on Houthi targets in Yemen and Middle East escalation riskGlobal trade, Red Sea shipping disruptions, and geopolitical implications for China and EuropeInflation, Fed policy, oil shock risk, layoffs, and the odds of Q1 rate cutsCarta’s secondary-market scandal, cap-table SaaS defensibility, and trust in data custodiansChamath’s 8090 incubator and the idea of 80%-feature, 10%-price SaaS clonesSlack’s shortcomings at scale and Sacks’s upcoming enterprise comms product, GlueDEI in Hollywood, awards criteria, academia and corporations; the case for meritocracy in critical jobs and better early education/family structures

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