Weekly Recap: Sam vs. Elon, Cluely's Crazy Ad, UFC x Paramount, Apple's AI Robot

Overview

This episode dives into the escalating feud between Elon Musk and Sam Altman, the curious marketing strategies of Cluely, the implications of ads in AI tools like ChatGPT, and Perplexity's audacious bid to acquire Google Chrome. It also explores UFC's groundbreaking $7.7 billion deal with Paramount, Apple's ambitious plans for a robotic Siri, and a spirited debate between Delian Asparouhov and Everett Randle on the merits of hard tech versus software investments.

Notable Quotes

- Mom and dad are fighting. Shots are fired. - John Coogan, on the Elon Musk vs. Sam Altman feud.

- If you're hanging out in games next to 75 Candy Crush clones, you're not really gaining that much. - John Coogan, on App Store category strategies.

- Your math on Earth doesn’t make sense, which is why you want to build factories in space. - Everett Randle, during the Slop vs. Steel debate.

🔥 Elon Musk vs. Sam Altman Feud

- Elon Musk accused Apple of favoring OpenAI in the App Store rankings, calling it an antitrust violation.

- Sam Altman fired back, accusing Musk of manipulating X’s algorithm to benefit his companies.

- Community notes fact-checked both claims, highlighting historical App Store rankings that contradict Musk’s accusations.

- The feud escalated with Musk and Altman exchanging personal jabs, including challenges to sign affidavits about their practices.

📈 Cluely’s Bold Marketing and Ads in AI

- Cluely’s CEO Roy Lee bought a Manhattan billboard with a quirky message: Hi, I’m Roy. I’m 21. Please buy my thing. This sparked debate on whether such stunts drive long-term retention.

- The discussion on ads in AI tools like ChatGPT revealed skepticism about integrating ads into generative AI outputs. Sam Altman expressed discomfort with ads influencing AI responses, emphasizing trust as a key factor.

💻 Perplexity’s Bid to Buy Chrome

- Perplexity made a $34.5 billion unsolicited offer to acquire Google Chrome, despite its own valuation being $18 billion.

- The move was seen as a strategic signal to regulators amid antitrust scrutiny of Google.

- Analysts debated Chrome’s true value, with estimates ranging from $50 billion to $120 billion.

🥊 UFC’s $7.7 Billion Paramount Deal

- UFC ended its pay-per-view model, transitioning to streaming on Paramount+ and select CBS broadcasts.

- The deal doubles UFC’s annual revenue from $550 million to over $1 billion.

- Concerns arose about how fighters will be compensated under the new structure, as pay-per-view points historically benefited top fighters.

🤖 Apple’s Robotic Siri and AI Expansion

- Apple is developing a tabletop robot resembling a Pixar lamp, designed as a virtual companion with lifelike AI capabilities.

- The robot will integrate with Siri, featuring a motorized display that follows users around a room.

- Apple is also working on home security cameras with year-long battery life and facial recognition, signaling a push into smart home ecosystems.

- Critics warned Apple to avoid dystopian marketing, emphasizing the need for pro-social use cases.

⚔️ Slop vs. Steel Debate: Hard Tech vs. Software

- Delian Asparouhov (Varda) championed hard tech, arguing that monopolistic potential and long-term EBITDA margins make it superior.

- Everett Randle (Kleiner Perkins) defended software, highlighting its scalability, network effects, and ability to generate high ROIC.

- The debate touched on AI’s evolving cost structures, with Randle emphasizing the importance of pricing power and token cost reductions.

- Asparouhov critiqued the application layer’s reliance on foundation models, asserting that true value lies in pushing technological frontiers.