Chamath Palihapitiya Channel

David Hammons currently stands as the most important artist in the world. By pushing boundaries, his work manages to simultaneously explore historical pasts and predict future events, a difficult balance that all top creators strive to master. At 82 years old, he is still going strong and remains a highly active force in the creative community.

Anyone who appreciates art and happens to be in NYC between May 1 and June 13 should make a point to visit White Cube. The gallery is hosting a phenomenal exhibition that looks back on his incredible career. I am especially thrilled about this event because I was recently in a position to loan the gallery a piece of his art that he eventually permitted me to purchase.

The story behind acquiring that work goes back to 2014 when I spent an unforgettable morning with David inside his Brooklyn studio. It was during this visit that he shared a profound secret with me. After I requested to take a photograph together, he declined. He then instructed me to get down on the ground next to him. Looking directly into my eyes, he explained that he refuses picture requests from everyone, advising me instead to store the memory using my heart and not my camera.

That piece of advice has stayed with me ever since. By putting the device away, I am still able to clearly recall the atmosphere of his studio, the immense depth of his creativity, and the gracious way he treated me alongside everyone else. His method absolutely worked. Looking back, his words seemed somewhat blithe at the time, but they carry heavy weight today when genuine presence has become so rare. We currently live in an era dominated by taking selfies and staging artificial shots for social media, making his timeless lesson more relevant than ever.

We are seeing outstanding earnings reports from the Mags right now. Curiously, though, the equal weight index is substantially outperforming the weighted index today, a fascinating development that certainly gives us something to ponder.

I am pleased to share that my 2025 Annual Letter has officially been published and is ready for you to read at https://t.co/vjvpDz6exF

Inside this edition, I explore a wide variety of subjects. The discussion begins with an overview of returns before moving into deeper conversations about artificial intelligence. Specifically, I examine the theory that if AI ultimately destroys terminal value, the future essentially holds zero worth until that moment actually arrives. I also explore what the global consequences will be for everyone else if the US and China maintain exclusive ownership over frontier AI.

The letter further highlights how the most definite bottleneck facing artificial intelligence is entirely physical. Alongside this, I look at how breaking up Big Tech through trust-busting might be completely incompatible with the goal of winning the AI race. Other sections cover the growing trend of utilizing doomerism as a pitch to raise funds, as well as an analysis of how financial markets are shifting their pricing structures away from traditional P/E models and moving instead toward current free cash flow.

There are many more topics covered throughout the document, and I hope you find these insights valuable.

The strategic landscape surrounding artificial intelligence is experiencing a fundamental shift. While owning a top tier foundational model remains crucial, the true bottleneck is increasingly becoming physical real estate that already possesses zoning approvals and adequate power supplies. Whenever you can combine that kind of property with immediate access to silicon, you have secured an unbeatable advantage.

Right now, holding these specific resources provides extraordinary bargaining power. That leverage is only going to grow stronger as local communities continue to reject new data center proposals. Elon recently illustrated this exact point through Cursor.

Looking ahead, one can only imagine the scale of the agreements that OpenAI and Anthropic will need to negotiate over the coming years. In fact, the recent partnership between Amazon and Anthropic was merely a small preview of what is to come. For astute investors sitting across the negotiating table with the right physical assets in hand, the upcoming opportunities are exceptionally promising.

The rise of artificial intelligence is fundamentally transforming how organizations operate, effectively boiling businesses down to three essential components.

First, there is Expert Knowledge, which is the specialized, industry level understanding of exactly what needs to be accomplished. Second is Tribal Knowledge. This refers to the informal, rarely documented nuances of a business that explain why some companies achieve much better results than their competitors doing the exact same work. The third piece of the puzzle is Hardware and Software, serving as the connective tissue that enables people to fuse this expert and tribal knowledge together to get things done.

When a company manages to thoroughly document its expert and tribal insights, it opens the door to completely redesigning its daily operations. Rather than taking jobs away from people, this process actually fuels faster growth and greater job creation. As the core tasks become perfectly clear, the organization requires an ever growing number of individuals to step in and apply critical human judgment.

This exact philosophy is the driving force behind our creation of Software Factory, a solution that many large and established enterprises rely on today.

At present, the greatest danger facing modern social networking applications stems from the powerful combination of an exceptionally advanced video model, TTS technology, and automated research capabilities.

An exceptionally advanced image model represents the single greatest danger to the competitive advantage currently maintained by Instagram.

To be entirely frank, the current re-rating of Nvidia defies logical explanation. Additionally, I find the shifting FCF multiple assigned to Apple, Microsoft, Meta, and Alphabet to be equally baffling. Regardless of my confusion over these specific adjustments, it is quite apparent that the underlying pricing models for public markets are going through a swift evolution at this time.

Please feel free to check out the latest video release by visiting this link: https://youtu.be/J2qKVjRR12w

We are currently experiencing an astonishing rate of progress and development. Because the business landscape is moving forward so rapidly, organizations that fail to adapt and evolve stand out much more clearly than they have in the past.

An extensive underwater observation and charting campaign is currently being carried out by China across the Indian, Pacific, and Arctic oceans. Through this massive operation, they are gathering comprehensive data to intimately understand various marine environments. According to naval specialists, achieving such a detailed knowledge of these waters is a critical requirement for potentially conducting submarine combat against the United States and allied partners. In light of these global activities, it is incredibly urgent that we take action to fully survey our own oceans as quickly as possible.

It is fantastic to see that the goal of creating a Software Factory has finally evolved into a standard expectation today. While the definitive market leader remains undecided, the path to delivering an incredibly useful product for the world is clear. Success will belong to whoever most effectively reinvents the software development lifecycle to align with our modern landscape. Navigating this new environment means seamlessly integrating agents, AI, expert knowledge, tribal knowledge, and business expectations. Although we are still in the very early stages of this evolution, 8090's Software Factory certainly appears to be heading in the right direction.

From the President…

Don’t be a panican!

We all know what some feel uncomfortable saying:

Most taxes are WASTED.

They are leaked and grifted into all kinds of programs that sound good on the surface. But that’s the lie that is told so politicians can take more of your earnings and dole it out to win votes and stay in power.

But it also turns out that people aren’t stupid and know the game.

So the states that admit this by breaking away from the hamster wheel of increased taxation are winning. While those who continue to try and sell the lie are losing.

At the limit, those losing states are leaking so much revenue that they will eventually lose so much tax revenue as to be effectively insolvent.

Remember this data is just from 2023…we are in mid 2026 so another two years of this trend is already in the books.

It is a remarkable reality that one of the most talented engineers on our team at 8090 is currently a high school student. The specific details regarding his employment journey will be shared at a future time. On a much broader scale, exceptionally gifted young individuals like him are going to harness the power of AI to reconstruct our entire world into a better place.

Imagine a theoretical scenario in which I am the proprietor of an American resource containing a reserve of 5m oz of gold. Under those circumstances, would it be best for me to:

The upcoming edition of the Pod promises to be an exceptional listen. We are dedicating the entire episode exclusively to Jensen, featuring continuous coverage straight out of GTC. Keep an eye out, as it is scheduled to be released very shortly.

I am incredibly excited to share the news today regarding a brand new global partnership between 8090 and EY.

As a monumental worldwide organization, EY boasts a dedicated workforce of more than 400,000 employees and serves tens of thousands of customers spanning every single sector of the global economy. Moving forward, EY will integrate the 8090 Software Factory into their offerings. By utilizing our AI-native software factory, which completely reinvents the software development lifecycle, EY will empower its clients to finally escape their sluggish, expensive, and error-prone legacy enterprise software.

The 8090 Software Factory introduces a modern methodology for organizations, shifting their focus toward creating applications that are exceptionally bespoke and of high quality. This approach guarantees software that is simple to maintain and migrate, while always remaining perfectly consistent and up to date. It effectively eliminates any drift, cruft, and waste.

As a result, companies that develop their systems using the Software Factory enjoy accelerated growth and increased profitability. Furthermore, they achieve much greater adaptability during the kinds of rapid industry changes we are witnessing today.

It is time to rewrite all the enterprise software in the world, and 8090 and EY are ready to work together to do their part.