As the Biden Administrationâs Department of Justice attempts to jail the opposition partyâs frontrunner presidential candidate, Americans have naturally been distracted by the largeness of these questions: did Trump âdo itâ (whatever âitâ is (thereâs a new thing every month or so)), will justice be delivered equally among the rest of our crooked politicians, and what will actually happen â just technically speaking â if Trump is both convicted of some crime or other and triumphant in the next election? The subject is important, if nebulous, and Iâll be covering it in greater detail as the election season heats up. But today, with federal norms so fundamentally altered in the name of âpreserving norms,â I find myself much more captured by a question for the Industry. What will happen to private citizens of political utility under this overtly politicized DOJ regime? The prosecution of a major presidential candidate is a huge, easy target, and for good reason. Trump will have many defenders, whether he deserves them or not. But what about the rest of us?
Last week, to broad industry shock, Bidenâs DOJ filed a lawsuit against SpaceX for âdiscriminatingâ in favor of U.S. citizens and permanent residents. Only hiring Americans? Not in this country, asshole (this country is America). As Alex Tabarrok reported for Marginal Revolution, the SpaceX story was a strange case for many reasons, the governmentâs own policy ostensibly in conflict with the lawsuit most importantly among them. On Twitter/X, Elon argued the decision to hire American citizens wasnât his choice. It was the law, which by the way our government was also following.
At its most basic, the conflict between SpaceX and the DOJ appears to be rooted in confusion over terminology. Space companies are ITAR-controlled, which means they can only hire âUS Persons.â The phrase âUS Personâ apparently includes refugees and asylum seekers waiting for their day in court, while the phrase âUS Citizenâ does not. The government has itself used the phrases interchangeably, I guess by mistake, for years. Nonetheless, the DOJ is taking Elon Musk to court, and the reason is obvious: the Democratic Party considers him an enemy.
Elon is a proponent of âfree speech,â and regardless of how perfectly the value has manifested on his platform, itâs undeniable the spectrum of acceptable politics on Twitter/X has broadened. This, for a certain kind of radical political creature, is intolerable. Kristen Clarke, head of the DOJ Civil Rights Division leading the lawsuit, not only appears to be quite racist (all âsatire,â she has since alleged), but is a committed proponent of limiting speech online. Her repugnant view is held in the name of combating âhate speech,â a purposely ambiguous term that can, by design, be applied to âpolitically incorrectâ opinions on almost any polarizing topic from immigration to welfare. âMisinformation,â another concern of hers, has similarly been weaponized by the state.
For the DOJ, none of this is about SpaceX. This is all, obviously, about Elonâs stated intention for Twitter/X to remain politically neutral, which is to say this is all about the next election. Obviously. Elon is being warned: fall in line, or we will make your life a living hell. He will have to choose, as will the rest of the industry over the coming year.
THE FIFTH ESTATE
NOTABLE INDUSTRY TRENDS
The most dangerous aspect of our last election was the broad alliance between political power (including unelected political power), media, and the technology industry â the early shape of an indomitable One Party State. But that alliance, while still loosely intact, has slightly eroded over the last year. In tech, specifically, it is less socially acceptable to be so openly authoritarian. The Washington Post is therefore now preparing readers to blame Twitter/X, Meta, and YouTube for a Trump victory following a general (if very slight) relaxing of draconian, pro-DNC speech restrictions. One such horrifying liberalization: Meta now allows users to opt out of seeing fact checks on Facebook posts. This story will carry on for many months to come, likely reaching its zenith sometime around the next âstolenâ election. (Washington Post)
For the last six months or so Iâve written about the cultural vibe shift, and that perspective informed a bit of my recent interview with Peter. Anyway, maybe it hasnât entirely shifted: turns out three quarters of the companies on the S&P tie ESG to executive bonus pay, and more than half maintain DEI incentives associated with compensation, the Financial Times reports. In other words: an actual example of systemic racism. In one case, Southwest Airline CEO Robert Jordan saw his pay go up 76% last year despite the fact that his airline canceled 16,700 flights in December. Nonetheless, âwith respect to ESG initiatives, including DEI and sustainability, the [board] determined that the company performed above target-level expectations.â
It is almost literally âthis business is failing, but employees are increasingly of the correct race.â Who are the bigots again?
Our boys are building a city. With progress across the Bay Area largely hindered by powerful bureaucrats committed, generally, to a philosophy of chaos and decay, involvement in local politics has increasingly become a major aspect of tech industry identity. But opinion sharply divides among a few distinct strategies: 1) entrance into San Franciscoâs Mad Max local politics, 2) exit to a new region (with entrance into local politics there), and now 3) Walt Disney World 2.0 â what if we just built a new city in the Bay Area, and ran it in a sane and reasonable manner? Investors in the project include industry titans Reid Hoffman, Michael Moritz, Marc Andreessen, Chris Dixon, Laurene Powell Jobs, John and Patrick Collison, and Nat Friedman. Naturally, the press has already attacked the project for imaginary slights against the âlocal farmers.â Weâll be following the story closely. (WSJ)
INDUSTRY LINKS
BROAD TECH
- Difficult to grasp today, on account of PDFs are now ubiquitous, but the act of sending âdigital documentsâ was once a kind of Holy Grail accomplishment in computer science. Sadly, John Warnock, inventor of the PDF, and a founder of Adobe, has passed away. (NYT)
- The future of Apple remains hopelessly entangled with the future of China. (The Information)
- Speaking of China, the worldâs most popular spy app raked in $18B in profit last year, then lit $500M of it on fire as it built out TikTok Shop. The company is now off, of its own accord, to take on Amazon (The Information). For some reason, the app is still not banned.
From the atom factory:
- Walmart will test Alphabetâs Wing drones to make deliveries up to six miles from two stores in the Dallas, TX area, marking the longest-distance tests to date. (Bloomberg)
- SpaceX is partnering with Cloudflare to increase the number of terrestrial data centers around the globe, hopefully boosting Starlink speeds as a result. (The Information)
- Tesla won its permit approval for a drive-in movie theater and diner EV charging station. (Teslarati)
Rated X:
- Elonâs LinkedIn killer? Twitter/X will begin beta testing a job board. Verified organizations can now apply for access. (@XHiring)
- Trump returned to Twitter/X to post his mugshot from Georgiaâs Fulton County Jail. It quickly became the former presidentâs most popular tweet of all time. A day after the first Republican debate, which Trump did not attend, the election season has officially begun.
- By the way, if Vivek wins he says heâd like to bring on Elon Musk as a White House advisor. Press loves this, of course (they do not love this). (Insider)
$$$:
- Instacart, the largest grocery-delivery company by sales, filed for IPO Friday. According to analysts: if the IPO sees its shadow, we will return to tech winter for at least a few more months. If it does not, the bull run will come early this cycle. (WSJ)
- Mortgage company Better.com lost 90% of its value after going public via a SPAC. (TechCrunch)
- Nvidia Corp., the chipmaker at the forefront of an industry-wide artificial intelligence race, delivered a third-straight revenue forecast that surpassed Wall Streetâs estimates. (Bloomberg)
- A piece of the Nvidia puzzle: AI startup Hugging Face raised $235M from Google, Nvidia, Intel, Salesforce, and others on Thursday, and is now valued at $4.5B. (Bloomberg)
- But the struggle for AI dominance rages on, with competitors in the space of AI tools now joined by a new crop of competitors in the chip space looking for a piece of Nvidiaâs pie. (The Information)
- Midas touch: In 2021 and 2022, OnlyFansâ Leo Radvinsky banked $284M and $338M respectively. Fairly certain he is now the most successful figure in the history of adult entertainment. (Bloomberg)
- Elsewhere: the DEA accidentally sent a scammer $50,000 in Tether. Nice. (Forbes)
Litigation and regulation:
- Elonâs looking forward to legal proceedings against the âGeorge Soros-funded NGOsâ who say âhate incidentsâ have increased on Twitter/X (@elonmusk). The trick, of course, is they define âhate incidentsâ as âpolitical ideas we simply do not like,â which do appear â for now â to be legal on the platform.
- The Biden administration proposed new crypto tax requirements on Friday, infuriating everyone from fiat warlord Elizabeth Warren, who simply wants it all banned, to crypto industry groups, who believe the rules are too broad. (The Hill)
- A group of Tesla investors are set to get $12,000 each â $40M plus interest total â after Musk settled with the SEC regarding his 2018 tweet that said âAm considering taking Tesla private at $420. Funding secured.â (Bloomberg)
- New York City will begin enforcing a requirement that Airbnb and other short term rental owners register with the Mayorâs Office of Special Enforcement, which will likely reduce the number of short term rentals on the market, as the city is allegedly processing these applications very slowly. Honestly hard to tell if this is on purpose, or if the local bureaucracy is simply broken beyond repair. (USA Today)
- Flashback: one thing the city manages incredibly well, however, is housing migrants, which it does to the tune of $4.3 billion a year. (Bloomberg)
Trade war:
- Following the Biden Administrationâs ban on selling advanced semiconductor tech to Huawei, the company has begun building secret semiconductor factories across China, under the banner of separate corporate entities, in an attempt to work around the American ban. The company has received around $30B of investment from the CCP, according to the Semiconductor Industry Association (Bloomberg).
Artificial intelligence:
- The Writers Guild of America (WGA) balked at Hollywood studiosâ recent concessions regarding AI as âthey refuse to craft rules regarding how the writersâ work could be used to teach AI programs to write scripts.â (Bloomberg)
- A recent New York Times piece details a philosophical evolution among educators in Washington, New York, and Los Angeles. They have all reversed, or are in the process of reversing, bans on ChatGPT. Increasingly, the technology is seen as a tool that should be taught to kids. âI do want students to learn to use it,â one teacher notes. âThey are going to grow up in a world where this is the norm.âÂ
- This season, Amazon is deploying a suite of new AI features for Thursday Night Football. Now, AI could be used to âautomatically suss out whether a defender is likely to blitz on any given playâ via body language, âhighlight the most open receivers down the field,â â[show] not only a kickerâs field goal range but the exact spot from which heâs more than 50 percent likely to nail the game-winner,â and more. All of this data may be displayed to viewers in real-time visualizations (The Verge)
Notes from the capital:
- Just half of Americans believe San Francisco is a safe city, down 20% from 2006, according to a recently released Gallup poll. A San Francisco mayoral spokesman told the SF Chronicle the poll has less to do with rampant violent crime and de facto legalized fentanyl dealing than the âpervasive impact of right-wing attacksâ on the city. In other words, there have been some bad tweets.
- A handful of mysterious internet people organized a âDoom Loopâ tour, which promised what I am imagining to be a kind of bar crawl through the most blight-affected neighborhoods of San Francisco. Along with media and spectators, âdozensâ of attendees showed up outside of City Hall on the day of the event â along with a âcounter groupâ who had gathered there to celebrate the Tenderloinâs history and culture â but the tour failed to materialize after its organizers never showed up. Then, yesterday, Breed-installed city commissioner Alex Ludlum came forward as one of the eventâs organizers, and tendered his resignation from the Commission on Community Investment and Infrastructure. âI regret that my attempt to bring attention to the deplorable street conditions & rampant criminality in my neighborhood has been misconstrued as a mockery of suffering individuals. Satire is a poor way to address the grave issues we face as a city,â he wrote in a letter to Breed. Frankly sad to lose a real one. (The San Francisco Standard)
- In terms of cleaning shit up (often literally), Mayor London Breed says sheâs hamstrung by a federal injunction preventing the city from clearing âhomeless camps,â the local euphemism for drug encampments. She organized a protest on Wednesday, which predictably generated a counter protest, organized by the âHarvey Milk LGBTQ Democratic Club,â and the âSan Francisco Latinx Democratic Club.â
CLOWN WORLD
Timnit Gebru, my favorite âAI ethicist,â asserted she was âunequivocallyâ and âdefinitelyâ fired by Google in a recent podcast (in fact, she submitted a letter of resignation, which Google wisely accepted). Read the transcript if you like, but not before checking out our coverage of Timnitâs work, in which she seriously posits Bay Area tech nerds are building AI for the purpose of genocide. Media absolutely loves this woman.Â
In yesterdayâs heartwarming tale of grace under fire, a heroic battalion of Nevada rangers cleared an activist groupâs highway blockade. âWeâre non-violent,â one woman cried as her fellow terrorists were arrested one by one, âweâre environmental protestors.â The blockade may or may not have had something to do with Burning Man, though we will not, on principle, be exploring the issue further, for fear of inadvertently âgiving them what they want.â Enjoy the soothing video. Nature is healing, etc.
Finally, the cherry on top of this weekâs Clown World Sundae. Behold, the dumbest controversy over race and video games from the craziest people alive since the last controversy over race and video games from the craziest people alive. River Page, who is very much on the âdumb controversies over race and video games from the craziest people aliveâ beat, I am realizing, concludes this weekâs letter with the following, vital report:
Is Baldurâs Gate 3 racist? Yes.
Baldurâs Gate 3 is a new RPG video game set in the world of Dungeons and Dragons. Since its release on August 3rd, the game has already sold 5.2 million copies on Steam alone, making it one of the biggest games of the year. Itâs also racist, apparently. On X, in a now-deleted-tweet (or whatever we are calling them now) one user complained âThe racism in Baldurâs gate is genuinely so fucking hard on me. Playing as a Tiefling as a black person is brutal, the game antagonizes you, and the plot positions you as the bad guy if you donât help the druids calling you slurs.âÂ
Like that tweet, playing as a Tiefling â a horned demon-like race â is completely optional, so the least resilient could simply play as another race. Right? Apparently not. For some, just witnessing anti-Tiefling racism against NPCs is too much. âThe Fantasy Racism in Baldurâs Gate 3 Affected Me More Than I Thought It Would,â reads a headline from The Gamer. The author says she was triggered by hearing an NPC call one of the Tieflings â again, a horned demon species â a âfoulblood.â
This is just the latest in a years-long campaign to get D&D to âGrapple with the Racism in Fantasy,â as a 2021 Wired article put it. In the article, the author scolds D&Dâs âgenetic determinism,â the sort of thing which says elves enjoy poetry and dwarves are good at mining, or whatever. In the game, certain races have skill bonuses, which lead to âstereotypesâ about intelligent gnome wizards, for example. Of course, if you work hard enough, you can be anything you want in the game â a half-orc scholar, say. However, the author believes this is exceptionalism is âanother trap.â By the time the Wired article was written, Wizards of the Coast, the company which owns the license to the D&D Franchise, had already promised to hire sensitivity readers for their guidebooks, and to make changes to deal with the âracial reckoningâ sweeping the country.Â
In Baldurâs Gate, it appears that some of this âreformâ has already been implemented. In Dual Shockers, one writer cites a scene where you can tell off an NPC for insulting a Gur, members of a gypsy-like race of nomads. I suppose that wasnât enough. So far as I can tell, what the very vocal minority here wants is a completely different game, in which âracesâ are just skins that have no bearing on the story, skills or anything else. They want to completely upend the basic mechanics and lore of D&D. That, or they just want something to complain about. Considering theyâve paid $60 for the game, and continue to play it, I suspect the latter is true.Â