This Machine Kills

Patreon Preview – 438. Bloodsport for Billionaires

8 min
Dec 30, 20254 months ago
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Summary

The episode discusses Anthropic's $1.5 billion copyright settlement to avoid criminal penalties, the venture capital funding landscape with companies like Lovable raising $330 million at a $6.6 billion valuation despite minimal market awareness, and broader critiques of tech industry valuations and startup economics.

Insights
  • Anthropic's settlement represents a strategic choice by investors to pay civil penalties rather than face potential criminal liability that could have bankrupted the company
  • Massive venture capital continues flowing into AI and no-code/low-code startups despite questionable business models and limited product-market fit
  • The term 'vibe coding' being adopted as dictionary word of the year reflects the absurdity of current tech industry hype cycles
  • Venture capital model incentivizes investments in companies unlikely to achieve liquidity events, prioritizing exit strategies over sustainable business fundamentals
Trends
AI companies facing significant copyright and intellectual property litigation as training data acquisition methods come under legal scrutinyNo-code/low-code platforms attracting massive valuations despite limited mainstream adoption or clear monetization pathsVenture capital funding remaining abundant despite economic concerns, suggesting continued investor appetite for speculative tech betsDictionary institutions legitimizing tech industry jargon, indicating mainstream cultural penetration of startup terminologyCopyright settlement amounts becoming substantial enough to impact investor confidence and potential IPO timelines
Topics
AI Copyright Litigation and Training Data AcquisitionVenture Capital Funding in AI StartupsNo-Code/Low-Code Development PlatformsStartup Valuations and Market HypeAI Model Access and DemocratizationTech Industry Economics and Investor ReturnsIntellectual Property Rights in Machine LearningStartup Liquidity Events and Exit StrategiesTech Industry Terminology and Cultural TrendsCriminal vs. Civil Liability in Tech Disputes
Companies
Anthropic
Settling $1.5 billion copyright dispute over illicit inclusion of books in training data from Libgen
Meta
Referenced as company also involved in pirating books for AI training data acquisition
Lovable
No-code startup that raised $330 million at $6.6 billion valuation, offering AI-powered software development tools
Google
Mentioned as provider of Gemini 3.5 model accessible through Lovable's platform
OpenAI
Mentioned as provider of ChatGPT 5 model accessible through Lovable's platform
People
Masayoshi Son
Referenced as 'king of kings' in discussion of worst tech person of the year bracket competition
Quotes
"The problem was not that they included the book in its training set. The problem was how they acquired the books, which is they mass-downloaded things from Libgen and stuff. So they pirated the books."
HostEarly in episode
"A smart society makes investments in startups that current generations will never ever get to try the product of because it goes bankrupt."
HostMid-episode
"A company that was only founded in 2023, getting a $6.6 billion valuation, raising $330 million, a company that I think most people, no, I know the vast majority of people have never and will never hear of this company."
HostDiscussing Lovable
"We do live in the stupidest timeline."
HostRegarding vibe coding as dictionary word of the year
Full Transcript
I think that's 2026 and then coming down the pipeline. I mean, everything you laid out there, things are continuing apace. Anthropic is settling their copyright dispute, their $1.5 billion copyright dispute. I got some emails about it because Too Smart, my first book was included, was one of the titles that was illicitly included into Anthropics training data sets. The problem wasn't that they included the book. It's so funny because the problem is not that they included the book in its training set. The problem was how they acquired the books, which is they mass-downloaded things from Libgen and stuff. So they pirated the books. Shout out to Meta. We love our pirates, don't we? Meta and Drompic. And the reason why they're settling for a whopping $1.5 billion copyright settlement is to avoid the potential criminal penalty of, I think it's $300,000 per book. It's so crazy that they didn't go for that. It's so crazy. I would have gone for that. And I think, I know 1.5 billion, I know the lawyers are drooling over that, but 300,000 a book would have killed the company. Yeah, I think for every title you have in this lawsuit with Anthropic, I think every person gets like and that like split between the authors the publishers and the lawyers I surprised those you know I surprised all the fucking greedy companies involved in publishing a book They want to go for a lick You tell me they could have had a billion settlement? Anthropic doesn't even make money. They don't even make money. And they have to pay out $1.5 billion. Imagine if they had to pay $150 billion. I mean, and that's because they ain't the ones paying it, right? Right. We need to... I'm playing a violin I'm playing a dirge for all the venture capitalists who are actually footing the bill for 1.5 billion. Can we have a moment of silence for our big beefy boys who are doing the Lord's work, who are fighting every day on the front lines, throwing money at firms whose liquidity events they'll never see? A dumb society plants trees for generations that are not currently alive. A smart society makes investments in startups that current generations will never ever get to try the product of because it goes bankrupt. A dumb society plants trees for a generation that's not alive. A smart society cuts down the trees planted by the previous dumb generations. yeah yeah yeah yeah you know and because why you don't need those trees fucking idiots right get rid of them yeah thanks for planting them but dummies you don't need them anymore you're just leaving value on the table i don't need that shirt which does go to i wonder like the the anthropic ipo maybe this uh lawsuit has got some of their investors real itchy and are like you need to go liquid now or else we are not reinvesting in your latest round Although none of this money is drying up Literally before we got on to record I saw that the vibe-coding startup Lovable has just raised $330 million at a $6.6 billion valuation. That sounds right. It's a vibe-coding startup. The whole business proposition is we are a wrapper plus a bunch of other stuff like data pipelining and good UX design and all that kind of stuff. A mesh of models, a bunch of other stuff. We are giving you access to models like Gemini 3.5 and ChatGPT 5. Through that, you will be able to automagically build yourself tools, software tools, a website for this or data visualization for that or an e-commerce platform for your small business. And, you know, the whole, it speaks to the, you know, we're democratizing the tools of coding through a chatbot interface. And there's a big market out there for stuff like that. and that is reflected in this company that was only founded in 2023, getting a $6.6 billion valuation, raising $330 million, a company that I think most people, no, I know the vast majority of people have never and will never hear of this company. No. And God bless them. God bless them for never having to learn about this bullshit One of the dictionaries made vibe coding their word of the year We do live in the stupidest timeline. We live in a society. Okay? You want to know how I got these? You want to know how I got this wealth? I don't know. What would the joker, you know? Yeah, it would be. It would probably be that. You want to know wow, I got these scores. Oh my God. Well, there is a lot to come in the new year. Well, you know, we need, we should do, you know, I always think, I always love it when Paris does the ranking system. We should do something. Well, this episode will come out after that we were on the Tech Won't Save Us livestream with Paris and Brian, where we did get to learn who won the bracket for worst tech person of the year. It's a beautiful choice. Who are you pulling for, Ed? Who are you pulling for? I mean, look, the listeners will already know. It will be resolved. But who are you pulling for? You know, I'm pulling for someone who isn't on the list, but is there always in my heart. You know, the king of kings. you know the son of sons right the herald of the rising sun right the one and only Masayoshi-san but he didn't make it he didn't make it that far the sun always rises in the east it always rises in the east that's who I want to win one year but I think I think the sun has sadly enough set on him and his empire Yeah.