Squawk Pod: David Sacks, Anthropic, & Regeneron’s deafness cure - 04/24/26 | Audio Only

Key Concepts

• Gene Therapy: A medical technique that modifies a person’s genes to treat or cure disease, specifically using AAV (Adeno-Associated Virus) vectors to deliver functional genes.
• Monogenic Disorders: Diseases caused by a mutation in a single gene, making them primary targets for current gene therapy breakthroughs.
• AI in Drug Discovery: The use of large-scale, high-quality biological datasets (like Regeneron’s sequenced gene database) to train AI models to identify patterns in human health and disease.
• Supply Chain Risk: The geopolitical and regulatory framework used by the government to evaluate whether AI companies (like Anthropic) are aligned with national security interests.
• Pied-à-Terre Tax: A proposed tax targeting non-resident owners of high-value properties (over $5 million) in New York City.
• Polymarket/Prediction Markets: Platforms where users bet on real-world events; the legality of using classified information for such bets is a central point of contention.

1. Breakthrough in Genetic Deafness

Regeneron Pharmaceuticals has received FDA approval for Otarmony, a gene therapy designed to treat profound inherited deafness in children.

• Mechanism: The therapy replaces a missing or defective gene responsible for a specific protein in the ear's hair cells, which are essential for transmitting sound.
• Results: CEO Len Schleifer reported that approximately 40% of treated children transitioned from total deafness to being able to hear a whisper.
• Business Strategy: Regeneron is providing this treatment for free in the United States. Schleifer emphasized that the company prioritizes scientific impact over market size for such rare, single-gene conditions.

2. AI Policy and Government Relations

David Sacks, advisor to the President on AI and crypto, discussed the administration's stance on AI companies like Anthropic.

• The "Woke AI" Argument: Sacks expressed concern that AI models might be trained to privilege specific political viewpoints (e.g., the SPLC) over government institutions (e.g., the DOJ). He argued that AI should be "accurate, unbiased, and truthful."
• Pentagon Procurement: The conflict with Anthropic stemmed from a refusal to agree to terms allowing their products to be used for "all lawful purposes," including military applications. Sacks argued that if a company sells to the Department of Defense, they must accept that the product will be used in war.
• Civil Liberties: Sacks clarified that he opposes government mass surveillance and is open to discussing these concerns with AI companies, provided they do not attempt to "strong-arm" the government through vendor negotiations.

3. Corporate and Market Developments

• Intel’s Performance: Intel reported a "blowout quarter" with $13.6 billion in revenue, significantly beating the $12.4 billion estimate. The data center business grew 22% to $5.1 billion. Analysts noted that demand for AI-related chips has revitalized products previously considered obsolete.
• The "PayPal Mafia" Trial: A federal trial begins regarding Elon Musk’s lawsuit against Sam Altman over the transition of OpenAI from a non-profit to a for-profit entity. The core issue is whether the original charitable mission and the "cap table" structure were violated.
• Citadel vs. NYC Mayor: Citadel criticized Mayor Eric Adams for targeting CEO Ken Griffin in a public campaign for a pied-à-terre tax. Citadel highlighted its massive economic contribution to NYC, including a $6 billion redevelopment project at 350 Park Avenue, suggesting that such tax policies might jeopardize future investment.

4. Legal and Ethical Issues: The Polymarket Case

A U.S. Army Special Forces soldier was arrested for using classified information to win $400,000 on a Polymarket bet regarding the capture of Venezuelan leader Nicolas Maduro.

• Key Argument: The panel debated whether betting on government outcomes constitutes a "derivatives contract" or mere gambling.
• Consensus: Regardless of the market structure, using classified information for personal financial gain is a clear violation of fiduciary duty and legal standards, akin to insider trading.

Synthesis and Conclusion

The week’s discussions highlight a tension between rapid technological advancement and the regulatory frameworks governing them. In medicine, the shift from "science fiction to science reality" is exemplified by Regeneron’s gene therapy, which offers life-changing results for rare conditions. Conversely, in the tech and political sectors, the focus remains on the "training data" of AI models and the ethical boundaries of government-industry partnerships. Whether it is the "Chips Act" fueling a resurgence in domestic manufacturing or the debate over AI bias, the overarching theme is that data quality and institutional alignment are the primary drivers of future success in both the public and private sectors.