Interview
Anthropic's Generational Run, OpenAI Panics, AI Moats, Meta Loses Major Lawsuits
- David Sacks has been appointed by President Trump to co-chair the President's Council of Advisors on Science and Technology (PCAST), shifting from his previous role as a specific AI and crypto advisor to a broader scope covering nuclear power, quantum computing, advanced semiconductors, and biotech.
- Michael Kratios (Director of OSTP) will serve as co-chair alongside Sacks, with the new council prioritizing "doers and builders" (e.g., Jensen Huang, Mark Zuckerberg, Larry Ellison) over purely academic scientists to drive industrial policy.
- David Freberg has joined the Trump administration as a member of PCAST, emphasizing the critical strategic race with China, which now publishes 50% more scientific papers than the US and is becoming a leader in biotechnology and AI industrialization.
- The PCAST roster includes 15 confirmed members with 9 slots remaining to reach a potential cap of 24, selected to address the gap between scientific discovery and industrial deployment.
- Anthropic has experienced a "generational run" with $6 billion in annual run rate added in February alone, driven by its focus on coding as an entry point into enterprise IT budgets and the release of Opus 4.6.
- Anthropic recently launched Computer Use, an agentic system allowing enterprise users to control desktop computers via mobile apps, functioning as a competitor to Microsoft's Open Claw.
- Sacks critiques Anthropic's "regulatory capture strategy," arguing their push for a Washington-permissioned regime for chip and model releases creates moats that favor incumbent companies and stifle new entrants.
- Sacks distances himself from Anthropic's lawsuit against the Department of War, stating he focuses on policy matters affecting the whole space and adheres to the principle that if a company chooses to sell to the military, they must accept lawful usage.
- Chamath Palihapitiya argues that comparisons between OpenAI and Anthropic are often flawed due to differing revenue recognition models: OpenAI recognizes revenue conservatively based on consumer subscriptions, while Anthropic recognizes gross token consumption.
- OpenAI has seen its consumer market share decline from 100% in 2023 to 75% in 2025, with Apple, Meta, and Windows now poised to capture significant market share, potentially leaving OpenAI with less than 50% in the future.
- OpenAI has cancelled its Sora video app integration with Disney, including a planned $1 billion investment, and is reportedly pivoting to focus more heavily on the enterprise sector to chase Anthropic's growth.
- Sacks highlights a private equity trend where firms like GC (General Atlantic) are acquiring and integrating service businesses (accounting, healthcare) with AI to manage the complex change management required for adoption, rather than just selling AI tools.
- Public Market Re-rationalization: Software valuations are collapsing as capital markets reassess the durability of cash flows in a potential "superintelligence" world, with the Mag 7 (Apple, Microsoft, Alphabet, Meta) receiving high multiples for monopoly durability while SaaS stocks face severe discounting.
- Sacks posits that in an era of digital abundance, traditional brand moats may erode as consumers prioritize value and lower costs, citing Tesla's displacement of luxury carmakers and Apple's entry into the lower-end MacBook Neo market.
- The discussion suggests that personal digital assistants could disrupt current smartphone operating systems by reducing the need for complex UIs, replacing app navigation with direct agent commands ("strangulation as a service").
- Meta faces two major legal losses: a $375 million jury verdict in New Mexico for facilitating child sexual exploitation, and an $6 million (estimated) verdict in Los Angeles for designing addictive features that harmed a minor's mental health.
- Sacks argues against the trend of product liability for social media harms, advocating for personal and parental responsibility, stating that the "tort tax" ($900 billion annually) stifles innovation and that parents must take charge of screen time limits for children.
- Freberg counters that the harms of social media (especially for young girls) are well-documented and that age-gating (16+ or 18+) combined with age assurance technology is necessary, citing the "impossible task" of uniform parental agreement across high school social pressures.
- Sacks notes that current age verification methods (like COPPA compliance) are easily bypassed by children ("vibe coding" their way through) and that true parental control requires better tech solutions.
- Chamath predicts that consumer AI services will eventually become a subscription necessity (similar to cell phone bills), with potential for ad-supported models or embedded service ecosystems, as consumers are unlikely to cancel "essential" digital services.
- Sacks reveals that Freeberg jokingly joined the "President's Council on Podcasting" while in DC, highlighting the group's informal culture despite the gravity of their official roles.
- Sacks notes that the new PCAST appointment allows him to continue advising on AI while expanding his influence into other critical technology sectors, though he jokes about his ability to stay awake for meetings.