Jack Dorsey's seminal signal, Iranians unleashed, OpenAI's good
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Jack Dorsey and AI take on corporate bloat—are you listening?Block (and Twitter) founder Jack Dorsey just dropped the mic on corporate bloat last week by cutting the Cash App’s parent company workforce almost in half. 😳 In one slash, he showed the world that if you don’t embrace AI as your personal productivity partner, you just might be out of a job. ‘We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company—and that disruption is accelerating very rapidly…Intelligence will be at the core of how the entire company works—the new core layer for decisions, product-building, risk, customer service, even internal ops.’ —Jack ‘The Ripper’ Dorsey’s excerpt from his letter to shareholders
As Jack noted in his X post to employees, this was nowhere close to a panic move because Block (whose BTC-related revenues represent 30% to $40%+ of its revenues) had a strong 2025. The company’s gross profits more than doubled quarter over quarter, the customer base expanded, and they raised their full-year 2026 guidance to 18% gross profit growth and $3.2 billion in operating income (a whopping 54% YoY jump). And Wall Street was so in love with the idea that its shares (XYZ) popped 25% in after-hours trading.
But rather than engage in repeated rounds of cuts that invariably damage morale, Jack decided to embrace the new AI reality all at once. At Cryptonite, we understand. Our Grok/Perplexity-powered edit team has collapsed the time we spend on research (Yay! Google search — the Wicked Witch of Web2 is dead), and we believe our content output is at least 50% more valuable to our readers as a result. Cryptonite is still the only media brand that links its content to its AI research—which, based on the number of clicks we see, is now one of our biggest competitive advantages.
We'll swear that we would never let a bot write our posts. Reading AI text hurts our brains. We are in our hero, George Gilder’s camp, which believes AI lacks the nuance and ingenuity that only a unique, talented human can create. In our opinion, all the Google-style eschatological fantasies and quasi-religious end-times prophecies are way overblown. That being said, AI is clearly transforming the job market in ways we can’t even imagine. Jack told his shareholders, ‘We’re seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better.’ Indeed, but it still takes an artist behind the wheel, as we are certain Jack would agree. Jack predicts that within the next year, ‘the majority of companies will reach the same conclusion.’ Jack is right when he says, ‘AI doesn’t just automate tasks—it rewrites the entire operating system of a company.’ For many companies (and people), it may already be too late. Our hearts go out to those disintermediated by AI, but kudos to one of Silicon Valley’s greatest entrepreneurs—Jack is still keeping a couple of steps ahead. This is a seminal signal—ignore it at your own peril! 💥 Your move: Dorsey slashed too much? Will Big Tech follow in 2026? Comment below.
Our 2026 prediction that the Iranians take down the theocrats has made startling progressIn our ‘Top predictions for 2026’ published Jan 1, we expressed our affection for our Persian friends in Silicon Valley, and boldly predicted the Iranian theocratic regime would be toppled this year. We conceded that this was purely a gut call, but here we are — just three months later — and History’s 8th biggest mass murderer is dead. It’s obviously still too early to see if the current path will lead to ‘creating an open, democratically elected, secular government that provides equal rights to all its citizens and encourages new prosperity.’ But we are still hoping and praying. 🙏🏼
Our early hint that a major change in Iran was erupting came from watching the Iranian stage nationwide protests beginning in December, driven by a devastating and ongoing economic collapse. The Iranian rial plummeted to a record low of 1.4 million to the US dollar, fueling hyperinflation — with annual rates hitting 40-42%, and food prices soaring 72%. Years of sanctions, mismanagement (including the end of subsidized dollar access for importers), drought, and unfulfilled reform promises under President Pezeshkian compounded the misery, leading shopkeepers in Tehran’s historic Grand Bazaar to strike, shutter businesses, and take to the streets.
This bazaari uprising—historically a pillar of regime stability since 1979—proved to be a tipping point for the revolt, spreading unrest to over 180 cities across all 31 provinces and evolving into the broader demands to end repression, water and electricity shortages, internet censorship, ethnic disparities, and ultimately, the Islamic Republic regime itself. Chants of ‘Death to the Dictator’ targeted Khamenei directly.
The regime’s brutal response—live sniper fire on crowds, mass arrests, and a protester death toll has soared past 32,000—only fueled the fire, marking one of the deadliest suppressions since the 1979 Revolution. In retrospect, the success of the Abraham Accords, initially forged during Trump’s first term, created a broad desire among both Jews and Muslims for peace and progress. The confluence of these events, as they have come together, is nothing short of a miracle.
In total, approximately 2.4 million innocent lives have been unjustly taken by the Ayatollahs’ regime and its proxies since 1979 — including ~1.2 million Iranians, ~500,000 Syrians, ~250,000 Yemenis, ~150,000 Iraqis, ~2,500 Israelis, and ~1,200 Americans.
Is Operation Epic Fury a ‘Just War’?U.S. citizens are still reeling from our previous war adventures in the Middle East. In retrospect, we avenged the murder of 2,977 innocentAmericans on 9/11/2001 by engaging in an endless war in Iraq + Afghanistan that killed another 940,000 😳, of which 432,000 were non-combatants, 😥 and injured another million+. We are reminded of these atrocities every day we walk our city streets and see the homeless, of which 60% are veterans of the Vietnam and Middle Eastern wars. Despite the fact that 99% of the post-9/11 war deaths were non-US citizens, the ratio of innocents killed to the number of Americans who died on 9/11 is so high that it is impossible to consider the Iraq/Afghanistan wars ‘just’ under traditional Augustinian just war criteria. We have to own this and vow never to engage this way again, as all human life is sacred, regardless of race, religion, or nationality. On the other hand, Operation Epic Fury could be seen as just that so far. President Trump’s aversion to ‘endless wars,’ no boots-on-the-ground, and protecting the innocent via targeted attacks has been shaped by our Iraq/Afghanistan lethal follies. The Trump Doctrine favors advanced, highly targeted air and naval dominance, the use of special forces for limited raids if needed, leveraging world-class intelligence, and no occupation plans. And in the current situation, it hinges on the hope and expectation that the internal Iranian forces and protesters will finish the job.
What gives hope and affirmed purposeEight million people fled Venezuela due to the tyrannical Hugo Chavez and Nicolás Maduro regimes and their country’s inevitable economic collapse. It was the greatest migration of citizens from a home country in history, by far. So when our special forces stealthily arrived at Maduro’s doorstep using the discombobulator technology that stunned his largely Cuban security guards and arrested the tyrant without a single U.S casualty—Venezuelans all over the world were dancing in the streets. Similarly, when the Ayatollah and his top cronies of oppression were blown to pieces on Saturday, many of the 4 million+ strong Persian diaspora took to the streets to dance, sing, and express their collective relief and joy. From ‘Tehrangeles’, and London (where Persians and kippah-wearing Jews celebrated together under the street lights), to Melbourne, Toronto, and Berlin, they were in solidarity with the Iranian people celebrating on the rooftops of Tehran. All were waving their pre-1979 Lion and Sun flag — not because the regime has fallen, but because they now know it will. To us, these celebrations affirm that we are on a noble mission, and that gives us great hope.
A Big win for the U.S. and our allies—and a huge setback for China and RussiaThe current U.S. and Israeli effort in Iran is a huge contrast to our 2003 Iraq/Afghanistan invasions, because it is driven by years of momentum created by internal protests, and more recent demands for regime change. Operation Epic Furyreinforces this momentum by first targeting Iran’s leadership to accelerate the regime’s collapse without the need for a foreign occupation force.
For the U.S., the benefits of this change are bountiful. They include significantly diminishing a major state sponsor of terrorism, eliminating an active nuclear weapons program threat, and neutralizing an anti-Western, anti-democratic regime that has long targeted American, Israeli, and Christian communities throughout the world. It also takes a leg of the Axis of Evil stool and disrupts Russia’s, and more so, China’s dependence on cheap Iranian oil.
The bottom line, however, is this: just as the Venezuelan people must ultimately reclaim their nation and steer their own political transition once our job is done, the Iranian people will have to seize control of their country and drive genuine democratic change after the dirty work is complete.
Unleashing the Mighty Lions of PersiaIn Silicon Valley, we love, love, love our Persian friends and fellow entrepreneurs. They have added much entrepreneurial energy, innovation expertise, superlative cuisine, and festivity to our often monochromatic tech culture. It’s our experience that, while excelling in the U.S., they remain passionate about their Iranian roots and proud of their historical contributions to science, mathematics, religion, and philosophy. So here we are—with an amazing opportunity that no one could have foreseen for 2026.😉 If we can help set the Iranian people free, Persia’s creative genius—its poets, scientists, philosophers, innovators—will undoubtedly reshape not just the Middle East, but the world. We pray for a peaceful path forward—one that honors the spirit of the enlightened rule of Cyrus the Great (590BC-529BC), the conqueror who founded the Persian Empire—the largest the world has seen — and who poetically freed the Jews in exile and allowed their return to Jerusalem. (Can you see God’s hand in all of this? We do.) May the God of Abraham stop the killing of the innocent and unleash the authentic Persian soul to flourish again. The people deserve it. Our humanity needs it. 💥 Do you think a successful regime change will happen? Comment below.
OpenAI’s Great and Lousy WeekLast week, OpenAI successfully closed the fattest funding haul in private-company history, only to see its new swag disappear in under 72 hours. The great news was obviously its new mullah infusion:
The company fetched a highly overvalued (in our opinion) post-money valuation of $840 billion, another first for a private VC-backed company. Interestingly, early corporate investor Microsoft (the company we were previously betting would ultimately buy OpenAI outright after it stumbles) didn’t invest in this round 🤔 despite previously investing $13 billion. This round diluted Microsoft’s stake from ~27% to 20%. For its money, Microsoft has a deep strategic and commercial partnership, including:
According to a joint OpenAI and Microsoft statement, ‘Nothing about today’s announcements in any way changes the terms of OpenAI’s previously announced deal with Microsoft, as detailed in October 2025.” OpenAI has broken many Silicon Valley business and governance conventions—like not being a purely for-profit company and having a CEO who does substantial wheeling and dealing outside the company. We would add this key concern: Following this latest mega-funding round—like the massive equity infusions and secondary share sales—OpenAI now has an unprecedented roster of ultra-powerful corporate backers with enormous stakes and very explicit, high-pressure expectations tied to their billions. These giants aren’t passive; they’re deeply embedded in OpenAI’s operations and future. Will OpenAI end up as the tail wagged by these corporate dogs? We’re betting yes—emphatically.
The OpenAI Plot Gets ThickerJust as the ink dries on this whopping funding, OpenAI’s biggest enterprise AI competitor, Anthropic’s deal with the Pentagon, blows up. Good for OpenAI? Not so quick. While Anthropic was the newly branded Department of War’s go-to AI partner with a $200M+ contract and classified clearance, it gets hit with an ultimatum: strip every guardrail for ‘all lawful uses,’ green-light for mass domestic surveillance, and fully autonomous lethal weapons. Deadline: February 28, 5:01 p.m. ET. Anthropic’s founder and CEO, Dario Amodei, says no can do. ‘We cannot in good conscience accede… We have deep worries about autonomous weapons and mass surveillance because the technology remains unreliable in these domains.’ The Pentagon responded by branding the company a ‘supply chain risk’ and yanking Anthropic’s vendor status. Hours later, OpenAI CEO Sam Altman slides in, signs the deal, and publicly claims they share the exact same red lines. The internet isn’t buying the optics. ‘Cancel ChatGPT’ and ‘QuitGPT’ trend all over X, TikTok, Reddit, and the rest of the socials. Users are flooding timelines with screenshots of OpenAI cancellation notices, and politically correct enterprises and researchers are also starting to migrate away from the company. Anthropic’s Claude bot then rockets from #131 to #1 on Apple Store’s U.S. free apps download list overnight, dethroning ChatGPT and dropping it to #2. Anthropic reports free users are up over 60% since January, daily sign-ups have tripled since November, and paid subscribers have more than doubled in recent months. The controversy turned into rocket fuel for the AI Doomers at Anthropic. Of course, the Boogeyman had to pile on Anthropic via Truth Social and calling Anthropic’s leadership ‘left-wing nut jobs,’ blasts their refusal as a “DISASTROUS MISTAKE,” and says they are putting American lives and national security at risk. He then directs every federal agency to cease using Anthropic tech immediately, with a six-month phase-out of the company’s existing contract with the Pentagon. ‘Thank you for your attention to this matter,’ he concluded. Cryptonite Final BarsAs pro-open market and decentralization freaks, we don’t rock with government strong-arming private companies—principles over coercion, full stop. But unlike the AI Doomers like Dario, we believe AI is ultimately a benign tool, and that bad actors are the problem, not AI. If safety concerns rise, we have faith unshackled entrepreneurs will iterate and make money plugging the security holes—paranoia only slows the race. At Cryptonite, as we noted above, we use a Grok/Perplexity combo to run our business, so we have no dog in this race. We respect Anthropic and think they will do well. We absolutely do not trust OpenAI, but it’s more about a lack of corporate governance guardrails. OpenAI had a great week—and a terrible week. The scoreboard’s still moving. Our readers can see who we are betting on in the AI game, 💥 Who are you betting on? Let us know in the comments below—and why. Following the AI Money 🤑💰 xAI $20B round—$100B+ val on Grok/AGI push... 💰 OpenAI $110B mega-haul—$730B pre-money, Amazon/Nvidia lead... 💰 Anthropic $10B termsheet—enterprise agents surge... 💰 Humans& $480M seed—$4.5B val frontier lab... 💰 Cerebras $1B Series H—$23B AI chips... 💰 Synthesia $200M—$4B val, Nvidia/Alphabet back video AI... 💰 Ricursive Intel $300M—$5B inference infra... 💰 Baseten $250M—AI deploy/scale tools... 💰 Bedrock Robotics $270M Series B—autonomous construction... 💰 OpenEvidence $250M Series D—$12B med AI... 💰 Capital One buys Brex $5.15B—AI fintech M&A... 💰 Waymo $16B—self-driving giant scales... 💥 Did we miss your company’s new funding? Post it below—and tell us what we missed.The AI Universe 🚀 The AI Universe 🌌💸 OpenAI o3 aces 95% GPQA—reasoning leap crushes rivals... 🔥 Claude 4 tops LMSYS coding/math—2M devs live... ⚔️ Google Gemini 3: 1T params, 98% video/agent accuracy... 🦾 xAI Grok 4 #1 all benches—300M MAU via X data... 💰 Meta Llama 4 405B open-weights—1B+ devices powered... 🏭 Nvidia Blackwell sellout—$45B Q1, TSMC warnings... 🦄 Scale AI: 80% top models, 10B tokens/day... 🔬 Microsoft Copilot 500M users—Pi AI 100M downloads... ⚙️ Mistral Le Chat EU #1—beats GPT-4o multilingual... 💋 Perplexity 150M MAUs—20% Google query disruption... 🛒 Cohere RAG 95% accuracy—Fortune 500 agents scale... 🌐 Databricks trains 10K custom LLMs—lakehouse dominance... 💥 New product launch, milestone, or benchmark? Post your headline below—and give us the inside scoop. What else you need to know….
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