Jason: All right, everybody. Welcome back to the All-In podcast. Your favorite podcast, podcaster's favorite podcast. With me again, the original Quartet is here. Chamath Palihapitiya in just an absolutely fabulous winter sweater. January looking great. Look at the size of those buttons.

Chamath: Huge buttons.

Jason: And your sultan of science, David Friedberg. What's the background here? Is that a melancholy and infinite sadness background? I'm trying to figure it out.

Friedberg: J, we don't talk about my backgrounds. Thank you.

Jason: Luckily, I have my straight man, my brother in arms, my Davos party crashing partner, David Sacks.

Sacks: I got you your first invite to something elite and exclusive.

Jason: Any post Davos WEF impressions? We had a lot of interesting meetings. So most of which I don't think we can talk about on air, but yeah, it was an interesting event.

Sacks: It was a distinctly different Davos. We've mocked Davos here for many years, but this one was a business takeover and a Trump takeover.

Jason: Correct. Chamath, you would have loved it. It was 1.5 days of everybody hand ringing of what Donald Trump would say when daddy got there. Then for the 75 minutes daddy gave his talk, the entire city shut down. Everybody ran to a television set. Then for the next 1.5 days, everybody talked about what Trump said.

Sacks: Basically, I think there are two really big differences with the Davos based on what I heard. One is it was much more business-centric and then second there were a lot more Americans there. I think that that owes to the fact that President Trump gave a major speech there and I think it was Larry Fink who's chairman of the whole thing now who sort of orchestrated that. They're catering a little bit less to kind of boutique European political issues.

Sacks: At this opening night dinner, Larry Fink calls on like five people to give little speeches and the last one he called on was Howard Lutnick, our Secretary of Commerce. And Howard just goes up there and he just starts dropping truth bombs on them. He basically said to all the Europeans, "Look, I've been coming here for 30 years and you guys have completely failed. You've wrecked your economies with all this net zero stuff and climate change and energy." He really let them have it. It's been reported Al Gore started booing at the end.

Jason: Drunk on Chardonnay?

Sacks: This whole climate change thing was Al Gore's big hoax going back to the '90s. I think the bloom is off the rose in terms of that whole agenda at Davos. They are beholden to this net zero idea. It feels like they're in transition. They don't feel they can trust America or that we're not their reliable partner. They're going to have to sort of get together as the mid-tier economies and they're going to just have to build their own trading block and go it alone.

Chamath: I'm not sure what going it alone means if you don't have best-in-class AI or best-in-class weapons.

Sacks: The Europeans understand the importance of the United States and specifically they want to keep the US in Europe. They're desperate to keep NATO together because just remember European history before the Americans were there. It's like hundreds of years of wars. The most peaceful period they've ever experienced has been post 1945 when the Americans are there as the great pacifier. So, they do not want us leaving. And I think they're willing to make large concessions to the US. President Trump was saying, "Look, you guys got to share in the burden here."

Jason: All right, let's get to work. For background, last month, the DHS started an operation called Metro Surge, sending 3,000 federal agents into Minnesota to crack down on illegal aliens. Over the last 3 weeks, two Minnesotans were tragically killed in altercations with federal agents. January 7th, 37-year-old Renee Good was shot to death by an ICE agent. Then tragically on January 24th, Alex Prey, also 37, was shot and killed by two border patrol agents. Prey was an ICU nurse at the local VA hospital.

Jason: Steven Miller tweeted that Prey was an assassin trying to murder federal agents. President Trump has pivoted and put Tom Homan in charge. Tom Homan said if we get these agreements in place, that means less agents on the street, more agents in the jail. Sacks, your thoughts?

Sacks: Well, first let me say the deaths are regrettable and tragic. But President Trump was hired by the American people to do a job, which is to seal the border and deport criminal aliens. Over 55% of the American people say they want all illegal aliens deported and over 90% want criminal aliens removed. This policy is working. Murders were down 21% last year.

Sacks: But Minneapolis has taken a different approach. They've engaged in a campaign of "massive resistance" to federal authorities. These are Antifa style operations designed to thwart the enforcement of federal immigration law. They stalk and dox ICE agents. ICE is a law enforcement agency. They have warrants to arrest known criminal aliens. The media has tried to portray Good and Prey as simply innocent bystanders. They weren't. They were foot soldiers in these Antifa style operations and they brought deadly weapons to the fight.

Sacks: Why would they want to risk such tragedies? They want to thwart mass deportations because illegal immigrants are a vital part of their power base. Illegal aliens count towards the census which occurs every decade. And the census determines the apportionment of congressional seats and electoral votes. Blue states are expected to lose nine house seats. Illegal aliens in blue states have been propping up those numbers. This is bare knuckle politics.

Chamath: The will of the majority is pretty clear. Everybody wanted the southern border shut. That's why Donald Trump won. But the reality is that both of these two deaths were complete and total tragedies. It's time to just get control of the process and dial down the temperature because the structural things they are doing are correct.

Friedberg: Federal law enforcement agents should not wear masks. They should identify themselves. Ideally, they wear body cams. Short of that, no one should take it into their own hands to obstruct law enforcement. If you disagree with the law, you've got to change the law. My personal view is there has to be a path to permanent residency for individuals who have been in the US for some period of time who have followed laws and paid taxes.

Jason: All right. Claudebot has gone viral overnight. I am all in on this. This is an open-source project created by Peter Steinberger. So, what is it? It's basically an open-source personal assistant. Think like Siri or maybe Jarvis.

Jason: The way it works is you run this like a server. Then you start authenticating it with your services: Gmail, Notion, Slack, WhatsApp. Super dangerous. But we did this and we put it to work. I created a virtual podcast producer. It did all this guest research instantly. Then I said, "Producer X, email Alex." And it wrote and sent the email. It's building its own SAS tools to solve its problems.

Sacks: This will be the year of the rise of the personal AI assistant. Until now, AI has mainly come in the form factor of a chatbot. Now, we're moving to a completely different form factor, which is again this AI assistant that's an agent that can do things for you. I think Google is in a tremendous position because Google has all my email, my calendar, my documents.

Chamath: It's almost like the first time you use FSD in your Tesla or the first time you used an iPhone. It's like this super worker. And if you start thinking about having an army of super workers, what's possible? Yesterday, Elon shut down the Model S and Model X production lines in Fremont to make Optimus. That's the future.

Chamath: I don't think people understand how important this Kimmy K2.5 moment is. It's a trillion parameter mixture of expert model. It democratizes something, this trillion parameter reasoning. It allows you to create 100 sub-agents to solve any complicated multi-step problem in parallel. This is the clear shot across the bow of closed source.

Jason: We are ordering Mac studios to run Kimmy. We'll have control of all the data. We have it on our own hardware. I canceled all of my OpenAI accounts. $25,000 gone.

Friedberg: If all of the models end up running locally on machines in open source, all of the idiotic, dumbass takes by legislators on what they think they need to regulate go out the window. I strongly endorse the effort to pass a federal AI preemption law.

Jason: One more important story. Dollar index is down 10% in the last year. Trump was asked if the dollar declined too much. His quote, "No, I think it's great." Friedberg, your thoughts on dollar devaluation?

Friedberg: Effectively, you've inflated everything. In a democracy, without adequate constitutional constraints, government spending goes up. Eventually, when the borrowing capacity gets unlocked, you borrow like crazy. This is the M2 money supply chart. We now see gold eclipsing US treasuries in central banks' inventory.

Friedberg: If you own assets, as the dollar devalues, your asset prices go up and we get wealthier. The majority of Americans do not own assets. They live off of income and they do not benefit from the de-dollarization. This is what is ultimately fueling populism. I wonder if a wealth tax may be an inevitability in order to keep the US from going into civil war.

Jason: Matt Mahan entered the California gubernatorial race. He's the mayor of San Jose. He's much more of a moderate and he's not a union captured candidate.

Sacks: California has a trillion dollar fiscal cliff coming up because of the pension obligations. There's precedent in California state court that you can never change their future benefits. There are two ways California can be saved: pass an amendment to the Constitution or allow the state to declare bankruptcy.

Jason: All right, everybody. All-in Summit Los Angeles September 13th to 15th. YouTube just broke 1 million. Love you, besties. Bye-bye.