Gurley expresses skepticism about Meta's avatar work meetings, having done eight board meetings with avatars himself.
“I'm very skeptical when I see Facebook show like a work scenario that we're gonna go do board meetings with avatars. And we've done them.”
Gurley believes Facebook's stock would double if they shut down VR, which costs $5-10 billion annually.
“Wall Street's on my side on this one. I think if they shut down the VR effort, not only will the profitability would soar because they're spending real money, like 5 to 10,000,000,000 a”
Gurley says no one will pay $20 for AI services as long as Meta AI remains free.
“from consumer. And so that's gone as long as Met is free. I don't think anyone pays the $20”
Gurley says closed AI model companies must compete with frontier performance while Meta gives it away free.
“If you're a closed model company, the question first is, okay, I'm going to have to compete and keep up with this frontier level competition. That's hard enough. It takes a lot of resources.”
Gurley says Zuckerberg described Apple blocking product improvements as soul crushing, motivating Meta's open source commitment.
“Great word. When you develop, work really hard on a product improvement, and then you have a company that says, no.”
Gurley says Meta may cut Reality Labs spending by 20 percent to reallocate billions toward AI development.
“Remember, Meta had allocated $20,000,000,000 a year to Reality Labs. And there was a report last week that they may, you know, tighten their belt on Reality Labs”
Gurley describes Meta's Scale AI acquisition structure: 49% stake for $15B at $30B valuation to avoid regulatory scrutiny.
“Meta has done this interesting structured deal, they're buying 49% of the company, they're paying a $30,000,000,000 valuation so they're paying effectively 15,000,000,000, they're avoiding regulatory scrutiny, the CEO of scale is going to help lead efforts at Meta.”
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