Gurley says America's litigious culture where contingency lawyers take 30-50% of recovery will delay autonomous vehicles domestically.
“Because of the regular because of the litigious thing that I brought up. I got it. I mean, look what happened with the one Tesla driver already.”
Gurley argues regulation typically locks in incumbents who write rules blocking new entrants.
“regulation's the friend of the incumbent. Most of the time when Washington DC leans into a new to to a new industry, you lock in the incumbents, and and the rules are written by the incumbents and make it very hard for new entrants to come up behind them.”
Gurley warns SEC's well-intentioned response to fewer IPOs—institutionalizing private company investing—will fail massively.
“But what they wanna do to fix it is then some kinda institutionalized investing in private companies, which I think will fail massively.”
Gurley says SEC's well-intentioned response to fewer IPOs risks institutionalizing private investing for average investors.
“I personally don't think it's healthy because a minute that happens and everyone realizes that there's less companies going public and companies staying private longer, then the SEC, I think in a well intentioned way goes, oh my god. The average investor's missing out on this asset class.”
Gurley says billion-dollar revenue threshold for IPOs fundamentally changes venture game and reduces accessibility.
“Anyone can start a company that can go public. If you have to get to a billion in revenue, it's just it's a totally different game.”
Gurley argues autocratic China has a massive advantage over the U.S. by avoiding layered regulatory constraints.
“It's likely a massive advantage for China where a more autocratic government can just decide, okay, we're gonna start doing things a new way.”
Gurley argues US infrastructure failure stems from self-imposed regulatory and litigation red tape.
“Well, he took all the regulation and lawsuits off the table. And so we have to recognize that one of the reasons we can't build infrastructure and the California high speed train thing is where it is, is because we've indoctrinated ourselves in red tape, both with regard to regulation and litigation.”
Gurley reports NRC charges SMR startups $60 million in fees just to reach first approval.
“the regulatory commission here in The U. S. Is fee based and all the people that are playing in this market, I've talked to say you're probably 60,000,000 to first approval, just on fees”
Gurley says DOGE represents departure from pre-election spending expectations for both candidates.
“prior to the election, the papers said that both candidates were gonna spend the same amount.”
Gurley says Anthropic and investor Eric Schmidt have been pushing for more AI oversight and regulation.
“based on what I've heard and seen and read and listened to on podcast, Anthropic and their investors like Eric Schmidt have been some of the people that have been encouraging, you know, more and more AI oversight and AI regulation”
Gurley says Visa and Mastercard have the highest operating margins in North American markets.
“And there's another fact that you should know in North America, which is Visa and Mastercard have the two highest operating margin percentages in our markets total.”
Gurley warns US policies were creating America-only AI versus China AI dominating rest of world, reversing internet patterns.
“Bingo. And I think had we continued on that path or if we go back towards that path, because I don't think this is over.”
Gurley says AI startups worrying about regulation from the beginning is unprecedented except for SBF.
“Prior I to SBF, I've never seen a startup worry about regulation this much from the very beginning. Now we're seeing it again here.”
Gurley notes US public companies have fallen to less than half their peak number.
“So the number of public companies in The US is less than half of peak. And so we've really had a fall off in the number of companies that are actually public.”
Gurley warns US AI regulation could create a fence around America while China serves the rest of the world.
“I think what may happen if you look at what happened with the Internet, there was a global market that the American company served, and there was a ring fence around China.”
Gurley states South Korea builds nuclear fission plants for one-fourth the US cost.
“South Korea, not China, South Korea can build a nuclear fission plant for one fourth the price that we can in The US.”
Gurley says he predicted three years ago that open-source AI models would threaten incumbents who would respond with regulatory capture, but underestimated how aggressively they would pursue this strategy.
“Almost 3 years ago, I believed open-models would become the key threat to the AI incumbents & that unfortunately they would lean into regulatory capture as a response. I underestimated the fervor with which they would use this non-business approach. https://t.co/oFDclTqJDq”
“When I saw this article, I couldn't get Kool and the Gang out of my head. Hat-tip to Claude for the lyrics! I very confused about who might own the copyright. REGULATE (to the tune of "Celebration") [Intro] Regu-LATE! R-E-G-U-L-A-T-E good times, come on! (It's a regulation!) https://t.co/5DTp81043E”
Gurley proposes global open source standard for nuclear reactors to lower costs.
“And I wonder what if the globe had a standard for, you know, fission based nuclear reactor?”
“The word “watermark” comes from photos and is visible by all. This is only identifiable by Anthropic. Once again they are judge, jury, and prosecutor. Lots of reasons to not use their products. https://t.co/6MGQCymnu7”
Gurley advises companies to relocate from Delaware to Texas or Nevada, claiming Delaware courts are now inconsistent and targeting specific companies.
“Time to head to Texas or Nevada. Staying is adding unnecessary risks for your shareholders. You should act in your shareholders best interest and flee Delaware. Delaware is no longer consistent. They are targeting companies they don't like.”
Gurley advises companies to relocate from Delaware to Texas or Nevada, arguing Delaware courts have become inconsistent and target specific companies.
“Time to head to Texas or Nevada. Staying is adding unnecessary risks for your shareholders. You should act in your shareholders best interest and flee Delaware. Delaware is no longer consistent. They are targeting companies they don't like.”