Anthropic is the single biggest beneficiary of California's unenforceable non-competes and its 'inevitable disclosure' doctrine, since departed employees can freely reuse knowledge from a former employer without needing to steal any documents.

6:48>> Anthropic is the biggest beneficiary of the unability to enforce non-competes and the doctrine of inevitable disclosure. Cuz those seven employees who left, they basically walked out of them because they're way smarter than this guy. They probably didn't bring anything. No pieces of paper, no stolen code. But next morning they start up and they say, "We just were thinking about this last week and we can keep thinking

7:10about this and everything in our brain is owned by us." And there's lots of states in the union where you can't do that. >> I wonder if Anthropa could have been started in Massachusetts. Probably not. >> No, you're exactly right. Which and I think California's even though it sucks as the employer, I think California's been right, oddly enough, the rare policy triumph for the great state of

7:29California, it's been really good for innovation in the Bay Area. Right. So you already have that very friendly employee thing, right? And given to Jason's point, given you have that, given you have that inevit, why put yourself at risk by stealing some [ __ ] that you just don't need? Sorry, how are you going to set up? >> Well, my question was, okay, so these individuals are screwed. Um, to be

7:50blunt, what does it mean in terms of timeline for Open AI? Does it cause meaningful delays? Does it impact their ability to ship their hardware product when they wanted to? Listen, if I had to breathe the tea leaves, hardware is probably on the bubble. This was one of Sam's initiatives that made sense when everything was working and OpenAI had an unassalable lead over over its competitors. Right now everything's, you

8:14know, we chopped Sora. Why the hell did we buy TBPN as great as it seemed six months ago? Right. Um hardware seemed like a great deal for six billion when I could get the legendary Johnny IV, but he his team stole everything. What's the point of like this is just an effing distraction for something that's going to he it's going to hemorrhage cash. >> I'm all in. If we go back 60 weeks ago,

8:36I'm all in on persistent AI around us. So, Zuck, like with his new eyewear and all that, but this has got to be almost on the cutting board. It's like the Apple car. It's got to be close to being cut. And I think the reason this lawsuit may have happened is to push it over the line of getting cut. Just kill it, guys. like it's not directly cause and effect,