20VC: Anthropic vs The Pentagon: Who Wins | OpenAI's $110BN Mega Round | Cursor Hits $2BN in ARR | Block's 40% Headcount Reduction: AI or Overhiring

**Rory O'Driscoll** (0:00)
Whatever it is that's in the water at Entropic, it's working and it has created unity. The state is more powerful than Entropic. You've got to believe that the next round for this Entropic and SpaceX are all public offerings. Tesla trades at a trillion today. I think if Elon died tomorrow to trade at 200 billion. OpenAI trades at 800 billion today. I think if Sam Altman died tomorrow morning, we traded 600 billion.

**Jason Lemkin** (0:21)
I think we got the SaaSpocalypse all wrong. Every single CEO I talk to doesn't think they need 40% of their team.

**Rory O'Driscoll** (0:28)
The lesson is never underestimate big markets and momentum. The knife fight doesn't start until the TAM is like 60, 70% saturated. The prize for winning is to reinvent the company from scratch and the product from scratch every six to nine months. Congratulations. It's a fun game.

**Harry Stebbings** (0:45)
This is 20VC with me, Harry Stebbings. Now it is time for my favorite show of the week, Rory O'Driscoll, Jason Lemkin, analyzing the biggest news in tech this week. Anthropic goes to war with the Pentagon. Do morals help Dario or do they hurt him? OpenAI closes that $110 billion round four times the size of the largest IPO ever. And then finally Block lays off 40% of the workforce. Jason Lemkin predicted it in real time. This is my favorite show of the week. It's time to dig in. But before we dive into the show today, I run 20VC fund and I get this question from founders all the time. Harry, I can't find a good.com. Do you have a hookup? Let me tell you now, the answer is always going to be no. I don't have a guy or gal for that. I do have a recommendation though. If you're building a tech startup, get a dot tech domain. Tech startup, dot tech domain. It couldn't be more simple or obvious. As an investor, I appreciate founders who put thought into their branding. When I see dot tech in your name, it tells me right away that tech is at the core of your build. It'll say that to your customers too. A clean and sharp domain like dot tech pays off in the long run. Look at the companies using dot tech. Nothing dot tech.
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**Rory O'Driscoll** (4:11)
You have now arrived at your destination.

**Harry Stebbings** (4:14)
We are back. Rory, last week, this man predicted one of the biggest layoff announcements in history before it came. He is that good at predicting the future. So this week is going to be even better. We're going to start this week in Anthropic with the Anthropic going to war, but being banned, the issue with the Pentagon. Rory, do you want to provide some context for everyone? What's actually happening with the battle between the Pentagon and Anthropic before we dive in?