The DOJ’s Landlord Lawsuit + Can Trump Buy Greenland?
Jan 13, 2025
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Explore Anthropic's latest funding and the shake-up in quantum stocks. Dive into the DOJ's lawsuit targeting major real estate firms and its implications for the housing crisis that goes beyond mere rent inflation. Then, humorously contemplate Trump's bizarre ambitions to acquire Greenland and the Panama Canal, while discovering why these plans are more fantasy than reality. Enjoy a blend of serious market analysis and light-hearted banter as the hosts dissect these intriguing topics.
52:36
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Quick takeaways
The DOJ's lawsuit against major real estate firms highlights concerns over price-fixing algorithms exacerbating the housing affordability crisis in America.
Anthropic's rapid valuation increase illustrates the competitive landscape of AI investment, positioning it as a significant rival to established players like OpenAI.
The merger between Getty Images and Shutterstock reveals strategic responses to AI-driven changes in content creation, raising regulatory and market definition challenges.
Deep dives
Investing in Innovation
The episode highlights the Fundrise Innovation Fund, which aims to democratize venture capital investment by building a $150 million portfolio featuring significant tech and AI companies. This approach allows a wider range of investors to access high-potential investment opportunities, which were traditionally limited to wealthy individuals or insiders. The Fundrise model allows investment starting from as low as $10, showcasing a commitment to making venture capital more inclusive. However, potential investors are advised to consider carefully the objectives, risks, charges, and expenses associated with such investments.
Anthropic's Rising Valuation
Anthropic is reportedly aiming to raise $2 billion in funding, which would significantly increase its valuation to around $60 billion, making it the fifth most valuable startup in the U.S. The valuation reflects a notable trend, as Anthropic's business has expanded rapidly from a $100 million run rate to nearly $900 million in just one year. This rise is partially attributed to its association with Amazon and the growing skepticism surrounding competitors like OpenAI, which has faced recent turmoil. The discussion emphasizes that investors prefer market leaders and that Anthropic's growth positions it as a credible rival to OpenAI in the AI landscape.
Quantum Computing Market Reactions
Recent remarks by NVIDIA CEO Jensen Huang have caused significant stock declines in quantum computing companies, with stock prices dropping up to 40%. Huang expressed doubts about the near-term potential of quantum computing, predicting it might take two decades before the technology becomes practically useful. This reaction indicates how market sentiment can be heavily influenced by authoritative figures, and highlights the volatility and speculative nature of the quantum computing sector. The episode also critiques the concept of investing based purely on hype, with insights into how market players often react without substantial understanding of the technologies involved.
Getty Images Merges with Shutterstock
A significant merger between Getty Images and Shutterstock has been announced, creating a stock image giant valued at approximately $3.7 billion. This move appears to be a strategic response to the rapid changes in content creation driven by AI technologies, which pressure traditional stock image companies. The acquisition is likened to trends in other industries, where consolidation occurs to compete effectively against dominant players, particularly in the face of disruptive changes brought about by AI. The merger prompts broader discussions around market definitions and regulatory concerns, given that these two companies would control a substantial share of the stock image market.
The DOJ's Lawsuit on Rental Price Fixing
The Department of Justice has filed a lawsuit against major real estate firms, including Blackstone and Cushman & Wakefield, alleging they used a rent-setting algorithm that led to illegal price fixing. The lawsuit expands on previous actions taken against RealPage, claiming these companies have been inflating rents through coordinated practices. This controversy highlights the broader issue of institutional investors' growing influence in the residential real estate market, which could lead to a rental affordability crisis for many Americans. The discussion emphasizes the need for increased housing supply and the importance of examining the legality of current practices in the context of rising rental prices.
Scott and Ed open the show by discussing Anthropic’s upcoming funding round, a huge drawdown in quantum stocks, and Getty Images’ acquisition of Shutterstock. Then Scott breaks down the Department of Justice’s lawsuit against some of the nation’s largest real estate firms, arguing why he believes the move doesn’t address the broader housing crisis. Finally, Scott and Ed discuss why Trump wants to buy Greenland and the Panama Canal and explain why the plans are unlikely to materialize.