Andy Jassy’s lobbying efforts, small US cities enticing remote workers, Phaidra Series A | E1511

Episode Summary

Executive Summary: The episode centers on Big Tech regulation, especially Amazon CEO Andy Jassy’s lobbying on his first anniversary and the proposed American Innovation and Choice Online Act, which would curb self-preferencing and use of non-public platform data. It also covers cities paying remote workers to relocate, a machine-learning startup improving industrial energy efficiency, and retail investors buying the dip amid market decline—plus a playful closing on “terrifying” investors in five words.

Main Topics: Amazon, Andy Jassy, and antitrust lobbying: The hosts discuss the New York Times profile of Andy Jassy, interpreting it as a PR and lobbying push tied to Amazon’s regulatory battles and the scrutiny around private-label brands. American Innovation and Choice Online Act: They unpack the proposed bill’s scope, how it targets very large platforms, and why it could prevent self-preferencing, discriminatory ranking, and the use of non-public third-party data. Competition, cloud neutrality, and Big Tech structure: The conversation expands from Amazon to Google, Facebook/Meta, Apple, Microsoft, and cloud providers, arguing that new antitrust rules could reshape marketplaces, app stores, and cloud services. Remote-work incentives and city competition: The hosts examine how 71 U.S. cities and towns are paying remote workers to move, using Tulsa and Greensburg as examples of how places compete for talent and economic activity. Phaedra and energy-efficiency machine learning: A Series A segment highlights Phaedra, a DeepMind-founded startup using machine learning to cut energy use in power plants and industrial facilities, framed as a major climate/efficiency opportunity. Retail investors buying the dip: They discuss retail investors increasing stock purchases during the downturn, contrasting their behavior with institutional caution and linking it to long-term investing and J-trading. Humorous closing on founder/investor psychology: The episode ends with a Twitter prompt about terrifying investors in five words, used as a light recap of startup and investing anxiety.

Key Arguments: Big Tech is lobbying aggressively because the regulatory threat feels real, and Amazon’s and other companies’ behavior suggests they are trying to shape the narrative early. The American Innovation and Choice Online Act is designed to stop large platforms from unfairly favoring their own products or using non-public third-party data to build competing offerings. This kind of legislation could materially benefit startups by reducing incumbents’ ability to copy, bury, or disadvantage competitors in search, app stores, and marketplaces. Cloud neutrality may become the next major antitrust frontier, because infrastructure providers like AWS, Azure, and Google Cloud host businesses that may also compete with them. Remote-work relocation incentives are a rational economic development strategy: cities can spend relatively little upfront and gain long-term tax base, spending, and startup formation. Energy efficiency is one of the highest-impact climate investments because software can optimize complex industrial systems and reduce waste dramatically. Retail investors may help establish a market floor by continuing to buy when institutions are cautious, especially if they are investing with long horizons rather than short-term speculation.

Data Points: Andy Jassy lobby visits: at least 3 trips to Washington - The NYT profile says Jassy visited Washington multiple times to meet lawmakers and White House officials. Amazon lobbying targets: Ron Klain, Chuck Schumer, Tim Kaine - Named officials Jassy reportedly met or spoke with as part of Amazon’s regulatory outreach. Bill eligibility threshold: 50 million monthly active users and $550 billion market cap or net sales - Hosts describe the proposed law as applying only to the largest digital platforms. Potential penalty under the legislation: 10% of last year’s revenue - They note the bill’s fine structure became much larger over time and would be a major deterrent. Cities offering relocation incentives: 71 cities and towns - Reported by Make My Move and cited from Wall Street Journal coverage of remote-work incentive programs. Tulsa population: 400,000 - Used to illustrate how a relatively small influx of remote workers can still move the needle materially. Remote workers brought to Tulsa: 1,300 high-paid tech workers - The hosts cite Tulsa’s program as a concrete success case. Tulsa target: 1% of population - They suggest Tulsa could reach 1% population growth from the program, eventually over 2,400 people. Greensburg relocation package: $5,000 cash + 1 year office space + gym membership + babysitting - Example of a smaller town offering layered incentives to attract a remote worker and family. Phaedra Series A size: $25 million - Funding round led by Starshot Capital. Phaedra claimed energy reduction: up to 30% - The startup says its software can cut industrial energy consumption significantly. Google data-center savings: 40% - The hosts reference earlier DeepMind work that reduced Google’s data-center cooling energy use by this amount. Morgan Stanley E-Trade retail clients: 7.8 million - Up from 7.6 million at the end of March, indicating growing retail participation. Average daily trades at E-Trade: 880,000 trades/day - Shows the scale of retail activity during the market downturn. Stitch Fix trade mentioned: 6% gain - Jason cites his own example of a J-trade that was reportedly up around 6%. Downturn horizon mentioned: 10-year window - Used to justify buying during a drawdown as a long-term strategy. OpenPhone pricing: starting at $10/month - Advertiser detail repeated during the segment on business phone numbers. Microsoft for Startups credits: up to $150,000 in Azure credits - Startup program benefit highlighted in sponsor copy.

Pivotal Quotes: "We can stay stupid longer than you can stay solvent." — Jason and Molly discussing retail investor behavior: A meme-like line used to describe retail traders continuing to buy during market declines. "I think he’s going to run with somebody very high profile and he’s going to win." — Jason: Jason’s theory that Jeff Bezos is positioning himself for a future presidential run. "This is not financial advice, but I’ll be J trading the whole week here on This Week in Startups." — Jason: He jokes about making live trades on air and following a fake portfolio strategy.

Implications: Listeners are being pushed to watch antitrust policy, remote-work geography shifts, climate-tech efficiency tools, and retail-investor behavior as major forces reshaping tech, cities, and capital allocation.