AI Sovereignty Wars, Palantir-Nvidia Deal, SCOTUS Birthright Ruling, Newsom's CA Budget Lie

**Jason Calacanis** (0:00)
All right, everybody, welcome back to the number one podcast in the world. It's your favorite podcast. It's your podcaster's favorite podcast. It's the All-In podcast, episode 279 with me, Friedberg, Sacks, Chamath, you know, the squad. You know the squad. We're here. It's the summer and we're ready to rock and roll. We got a power docket. We got a rocket docket. Palantir and NVIDIA have announced a sovereign AI partnership. Where have we heard that term before?
Palantir is going to use NVIDIA's NemoTron, NemoTron, like the Pixar film, open models to build a custom frontier quality model to serve the US government. Palantir is calling this new platform sovereign AI operating system. The US government agencies will own the hardware. The data and the model weights. Palantir also shared a viral tweet manifesto laying out the concept, data retention is your treasure, transfer it at your own peril. Transferring that data hands over access to your pre-existing winning plays and yields the means of production for new ones. CEO Alex Karp went on CNBC to announce the partnership in a classic Karp Robin Williams style monologue. Here's a clip from his 20 minute interview where he basically went after the frontier models like Anthropic. Here's a clip from his 20 minute interview where he played the clip.

**Alex Karp** (1:24)
Our clients are just to say that I'm happy with the frontier labs, just to say I'm welcome at the Berkeley faculty. It's like there's just a level of discomfort and loss of trust. Sam and Dario, there's nothing more fun than debating Dario in private. So I'm not throwing shade at them, but something has gone completely wrong, and the basic view among enterprises in this country is, I'm going to chill wax and waste my time with tokens, I'm going to get no value and they're going to get my IP. When the Department of War goes to you and says, I need this application, do they get to control the weights to do it or do you get to control the weights? Are we really going to outsource the battlefield of this country to the consensus view in Silicon Valley? That is f-ing insane.

**Jason Calacanis** (2:13)
All right and so some folks refer to this as a televised nervous breakdown. We here at AllIn call that Alex Karp on a Tuesday.
And we talked about this, Chamath, Sacks, Friedberg, we talked about this a whole bunch.
Back in February, I coined the term intelligence sovereignty. Here, here's your victory fact. Do I want to give all of the secrets in our organization, every piece of intellectual property to Sam Altman, who's got to make a billion dollars a year to keep up with his spend, right? He's going to build every application. I've been talking about AI sovereignty here for a bit, just in terms of how much more cost effective it is and how you're not training other people's AIs with your knowledge and your insights. This is why it's super important that open source, open source agents and local hardware be able to run these models, and that consumers and companies learn how to roll their own language models. The intelligence sovereignty is different than privacy. Privacy is, oh, you can't see my photos, you can't peek into my notes app and what I wrote there in my journal. Intelligence sovereignty is you can't tell me what to think. You can't use your AI to analyze my photos, to analyze my emails, to analyze my messages and tell me how to interpret the world. That's actually going to be the next key piece here. All right, and Sacks, you are in your long post era. Another long post this week from you on this very topic and obviously as AI czar there for the first half of the Trump administration, you have been very involved and very close to this. I would love to hear inside, I'd love to hear your take on this and your long posts, over 300 words. You can follow x.com/davidsacks, but also like the palace intrigue here and what this means in terms of the relationship with the government, which we're going to get into in our second story.

**David Sacks** (4:08)
Well, look, Jay Cal, I got to give you some credit there. The first part of your take was spot on. After that, it was kind of diminishing returns. I'm not sure why we had to listen to the next 30 seconds of it. But anyway, it started off really strong. But let's go back to the supposed crash out by Karp on CNBC. It was nothing of the sort. It was all these legacy media types making that claim. That's the first clue that he's actually saying something insightful and maybe kind of brilliant. And I think the thing that he said that I hadn't really thought about in quite those terms is he started talking about AI safety in the enterprise and what that really looks like. And what he said is that what technical customers want is control over their compute, their models, their data stack, and their alpha, meaning their proprietary knowledge. They want to know they own the means of production, he said, and it's not being transferred to someone else. And what he's referring to there is that these enterprises are at risk of transferring their knowledge, their know-how, their trade secrets, their customer data to these model providers who might eventually decide to compete with them. Like you said, J. Cal. And you can see that enterprises are waking up to this threat and they're not happy about it. And I think Karp is exactly right about that.