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

(0:00) Bestie Intros: Don't spoil Dune 2! (0:55) DOJ drops antitrust suit on Apple (23:36) Apple reportedly in talks with Google and OpenAI to power AI features on iPhone (32:17) NAR settlement: how it impacts residential real estate going forward (44:30) Microsoft's "Shadow Acquihire" of Inflection (48:43) How the besties would deploy $40B in AI as a sovereign wealth fund (1:01:57) Reddit IPO: is risk-on back? (1:07:17) Science Corner(s): Universe expansion, first pig kidney transplant in human, Neuralink 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://storage.courtlistener.com/recap/gov.uscourts.njd.544402/gov.uscourts.njd.544402.1.0_3.pdf https://www.justice.gov/opa/pr/justice-department-sues-apple-monopolizing-smartphone-markets https://www.google.com/finance/quote/AAPL:NASDAQ https://www.bloomberg.com/news/articles/2024-03-18/apple-in-talks-to-license-google-gemini-for-iphone-ios-18-generative-ai-tools https://www.macrumors.com/2023/10/11/google-pays-apple-billions-default-search https://venturebeat.com/ai/apple-releases-mgie-a-revolutionary-ai-model-for-instruction-based-image-editing https://twitter.com/chamath/status/1769751534940918234 https://nypost.com/2024/02/26/business/google-to-relaunch-woke-gemini-ai-image-tool-in-few-weeks https://twitter.com/Patworx/status/1760189582870536408 https://www.youtube.com/watch?v=QNv9PRDIhes https://www.nbcnews.com/business/real-estate/national-association-realtors-settlement-changes-rcna143634 https://www.wsj.com/real-estate/realtors-settlement-change-buy-sell-homes-da45eb23 https://www.bloomberg.com/news/articles/2024-03-19/inflection-ai-plans-pivot-after-most-employees-go-to-microsoft https://www.bloomberg.com/news/articles/2024-03-19/microsoft-hires-deepmind-co-founder-suleyman-to-run-consumer-ai https://inflection.ai/inflection-ai-announces-1-3-billion-of-funding https://www.nytimes.com/2024/03/19/business/saudi-arabia-investment-artificial-intelligence.html https://www.cnbc.com/2024/03/21/reddit-ipo-rddt-starts-trading-on-nyse.html https://www.wsj.com/economy/central-banking/fed-officials-still-see-three-cuts-this-year-0b039532 https://www.wsj.com/real-estate/commercial/americas-office-fire-sale-has-barely-begun-0c8d376f https://www.foxweather.com/earth-space/nasa-webb-telescope-hubble-observations-universe-expansion-rate-question https://www.massgeneral.org/news/press-release/worlds-first-genetically-edited-pig-kidney-transplant-into-living-recipient https://twitter.com/neuralink/status/1770563939413496146 #allin #tech #news

Jason CalacanishostDavid FriedberghostChamath Palihapitiyahost
Mar 21, 20241h 19mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Apple antitrust showdown, AI power plays, and disrupted commissions collide

  1. The hosts dissect the DOJ’s new antitrust lawsuit against Apple, debating whether Apple’s tightly integrated ecosystem is consumer choice or abusive lock‑in, and what role government should play in enforcing interoperability and App Store competition.
  2. They then explore Apple’s rumored AI deal with Google Gemini as a potential sign of Apple ceding core innovation, while contrasting it with Microsoft’s aggressive AI strategy, including its quasi‑acquihire of Inflection AI and the broader AI investment landscape, such as Saudi Arabia’s proposed $40B AI fund.
  3. A major settlement against the National Association of Realtors is framed as a turning point likely to compress commissions, eliminate many agents, and accelerate AI‑powered, a la carte and flat‑fee real estate services.
  4. The conversation rounds out with market speculation (Reddit IPO, rate cuts, commercial real estate stress), plus science and tech breakthroughs, including cosmology findings, gene‑edited pig organ transplants, and Neuralink’s first successful human trial.

IDEAS WORTH REMEMBERING

5 ideas

Apple’s closed ecosystem is under serious antitrust scrutiny, especially around interoperability and App Store control.

The DOJ’s case centers on whether Apple’s restrictions on super apps, messaging, wearables, cloud gaming, and wallets are legitimate product design or anti‑competitive tactics that unfairly lock users and developers in; the hosts expect at least some forced concessions, particularly on messaging and device interoperability.

Interoperability pressure may ultimately benefit Apple if it leans into openness instead of lock‑in.

Allowing iMessage on Android, opening the Watch to non‑iOS devices, and relaxing App Store rules could expand Apple’s addressable market rather than just preserving short‑term rent extraction, but Apple’s instinct has consistently been to push lock‑in until regulators or lawsuits push back.

Apple’s rumored reliance on Google Gemini signals strategic weakness in AI, especially versus Microsoft.

The panel views licensing Gemini as akin to IBM outsourcing its OS to Microsoft or Yahoo bundling Google Search—outsourcing a core future capability to a competitor; with $30B in R&D, Apple is criticized for not clearly owning a first‑class, in‑house LLM strategy.

Microsoft is aggressively consolidating AI talent via structures that sidestep full acquisitions and antitrust.

The Inflection AI deal—hiring most staff and licensing tech while leaving the corporate shell—looks to the hosts like a bailout of investors and a way for Microsoft to absorb top talent and IP without a headline acquisition, reinforcing its pattern with OpenAI and others.

The NAR settlement will likely compress commissions, kill the long tail of agents, and shift to flat or a la carte pricing.

By forcing buyers to pay their own agents instead of hiding buy‑side commissions inside the seller’s fee, the economics become explicit and unattractive for many buyers, driving fee reductions, fewer full‑time agents, more dual‑sided representation constraints, and a bigger role for AI tools, fixed‑fee and menu‑based services.

WORDS WORTH SAVING

5 quotes

What this lawsuit is really about is your view of interoperability.

David Sacks

If Apple is gonna use Gemini, I think it’s them giving up.

Chamath Palihapitiya

It’s always been crazy to me that anyone would pay a percent of absolute value… I just gave up 60% of my profit on my home.

David Friedberg

The most important thing fund managers get wrong is not having appropriate reserves for your winners.

Chamath Palihapitiya

Our universe is expanding at different rates in different parts of the universe, which totally doesn’t make sense, and there’s no really clear answer as to the physics of why.

David Friedberg

DOJ antitrust lawsuit against Apple and interoperability debatesApple’s AI strategy and potential Google Gemini integrationMicrosoft’s Inflection AI acquihire and AI market structureNAR settlement and the future of real estate commissionsSaudi Arabia’s proposed $40B AI fund and investment strategyMarket sentiment: Reddit IPO, rate cuts, and CRE riskFrontier science and tech: expanding universe, xenotransplantation, Neuralink

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