David Sacks

Well, first of all, let me give credit to Sam for calling this Code Red, breaking the glass and pulling the alarm.

I think it's so easy for CEOs in general to engage in happy talk and

ignore problems, especially when discussing them is going to create a PR story that they don't like.

And I do think one of the things that's unique about Silicon Valley is just that the founders and CEOs do treat the situation of their companies in a more existential way because we actually do have tremendous competition.

And so anytime I think a CEO is willing to, again, take a bad PR story in order to focus their troops on a real business problem, I think they deserve credit for it.

Because I think when you look at the rest of the Fortune 500, these CEOs are just kind of managing PR all the time.

Now, with respect to...

the ecosystem as a whole, it is very competitive.

And I think we've got five major companies, and they all have their strengths.

So ChatGPT is the leader in consumer.

They have something like 80% market share in consumer use of LLM chatbots.

But then Google came out with their new Gemini 3, and they were starting to take share based on the strength of

Gemini 3 and the integration it has, obviously, within Google search, because it's very easy for people to discover it when they do a Google search.

And now they're seeing that it's actually pretty good.

So they were starting to take share from ChatGBT.

And I think that's why Sam issued the code red.

Then you've got Anthropic, like you mentioned, where I don't particularly love what I've called the regulatory capture strategy, but I have to acknowledge their products are very good.

Everybody seems to say that they have the best coding assistant and they're carving out a very lucrative niche in enterprise.

And then you've got XAI, which I think is the best at current events because of the integration.

with X, and also Elon seems to be able to scale his data center, his training cluster, the fastest.