♪ >> he's a modern-day silicon valley rent a great. is unafraidhapitiya of breaking the conventional rules, vowing to take bigger risks, sold the bigger problems, and make money big-time. from putting chips and are close to starting a university. he is best known for from 50rging facebook million to 750 million users. today, the incendiary

investor and founder of the social capital partnership, chamath palihapitiya. thank you for joining us. how do you feel about that word incendiary? >> of these people will remember you. >> you were born in sri lanka. >> i was born in 1976. the civil war out in the early 1980's. both my parents are buddhists. my mom was a nurse. insinuate able to himself to get posted to the sri lankan high commission in canada. we were six years old when myself, my sister, and my parents integrated. my dad proudly talks about how

he was a communist organizer. when he spoke out about that, there was a huge pushback from the government that said you can't talk like this. there was a lot of pressure on my father to the point where he could not reasonably return to sri lanka without our life not being in some kind of jeopardy, so we filed for refugee status. the canadian government gave us ,efugee status, and we stayed and life as we knew it abruptly stopped and we had to start all over again. no house, no close, no nothing. fast, i'm sitting here with you. it is crazy. it's not supposed to turn out this way. being you go from well-off to almost nothing? job i made $55,000.

i show that to my parents because they complained when i took this job. i took a job in finance because i saw this number. i told them that you have to realize i remember what it was like. i remember for a fact when i saw your joint tax return, the most amount of money they had made was $32,000 combined. >> three kids? >> three kids, lived above a laundry mat. they grind it out. they did everything. they found way to give his music lessons. how do you do that on $32,000? >> your mother was a housekeeper. >> she was always trying to better her english to take equivalency exams to become unders. that never happened for her. she was able to become a nurse's aide. my dad was able to find a job and work in a photocopy store for a while.id -- the best he could do would set

an example and hopefully the kids will learn and do the same thing. motivation to say what is on my mind. the reality is -- silicon valley trades on two things, right? , and the other success. in terms of lore, i've paid my dues. i have worked in three of the top five internet businesses created. i was at the foot of all three of them. i just don't care what anybody thinks anymore. i have no troubles. i'm relatively healthy, knock on wood. financially secure. so why aren't i sing what i believe? my dad had nothing. he stood up and he was able to say this war shouldn't happen. what is the myth of chamath palihapitiya and what is the reality? >> i got more lucky than i

deserve. leave aing hard to reasonably positive legacies of that i feel like i did the right thing. i feel like there are way more people that are way more talented than me. i think the myth is that i'm aloof, arrogant. i say what's on my mind. i guess at some level maybe all of those things are true, but the me that i know is just the same guy that feels like my parents gave up a lot. i feel like i should be really doing something important. >> were you like this when you're young? has this evolved? >> alcohol is a great trip serum. money is a great amplifier of courage. what else do i have to be afraid of at this point? i have an obligation to do what i need to do, to help people, and build some things that are

interesting. ,rankly, to make more money because if i can make more money, i will have a better sense of what i have to do. i spent the last two months in a long, drawnout battle to figure out if we could launch a $100 breast cancer test for the united states. i wanted to subsidize the whole thing. about $150ve cost million to do this right. with 100 $50 million, you could create a $100 breast cancer test. >> all of those things are possible because money amplifies your ability to do this. >> when you didn't have money -- to be rich.nted i assessed about the forbes list. i thought it was the most important thing in the world. no context other than i hated to be poor. we did not have a car until i was 17 years old.

for two or three years, i would explicitly lie about where i lived. i think it was because i was ashamed. you,ere's a codename for charlie foxtrot, cf. it also stands for crazy effort. ♪

>> how did you end up in silicon valley? when i graduated, i took a job in finance to relieve the immediate pressure i felt on my family. very quickly, i thought it was boring. my girlfriend at the time had moved down here. that is how i came down here. i applied for a bunch of jobs. that's how it all started. >> how did you get the job at facebook? i had known sean parker. >> he was president at that time? he said that he was going to be in washington, d.c. do you want to meet?

and i thoughtng this was super interesting. these guys are onto something. i did a deal with facebook. in that process, that's how i got to meet them. >> what was he like at that time? >> high potential, but still very young. >> did you know? did you have a feeling that it was going to be huge? >> i don't think we knew until about mid-2008. then we could say to ourselves, there is a formula here. by formula i mean that we understood the psychology of why people wanted to be a part of this. once you understand the psychology, that is just a matter of building features and software that ring that psychology to life. emotional andhis

responsiveness that facebook could give them. the formula was to figure out how these early behaviors could then drive the ability for you and me to pull other people and because you wanted more of that psychological feedback. >> you are legendary when it comes to growing facebook. what did you do? how did you do it? how much of it was you and how much of it was facebook? facebook and 50 basis points to me. i inherited an unbelievable leader who had an unbelievable vision. i was lucky to have a group of people who wanted to tolerate me for 4-5 years. >> i know for a fact that startups today are consciously .ooking for their chamath there is one startup that has a codename for you, charlie foxtrot. it also stands for crazy effer.

are you a crazy effer? >> yeah. you go to talk to google, yahoo!, ebay and ask how they expanded internationally. package.ut on a eff that., of resiliencethe should not be able to speaking as well. in russia, i thought about it. you can buy a list from a rush and hacking group with every single presence name and rush in. just buy we should this list of every single person's name and we will run google ads so that when they search for themselves they see link to a fake profile.

we didn't do it. the point is you have to be able linegure out where is that . >> what are facebook's biggest challenges today? it is the challenge of any successful company. the internal inability to disrupt yourself. aink about what happens in company, not just facebook, google, apple. extreme wealth creation. all of the distraction that creates. incrementalnts of focus, attention, press. adulation. the acolytes come out of every single part of the woodwork. it takes a really, really special person to not be able to be affected by that. >> google and facebook are trying to do the same thing. who wins? >> i think they both win, but in different ways.

to thewins with respect entry point. they own the front door to the internet, and they own the front door to the 90% of the mobile apps. the experience once you're there. >> speaking of another big company that you're not fond of, you once wrote that temp cook milquetoast, uninspiring, margin tweak her image for himself. you also said that apple should by tesla and make elon musk the ceo. do you still believe that? >> yes. he is very good at what he does. i think he is probably an exceptional operationally minded ceo. the question is can that hers creativere the type of types to build the next lily pad? i think, no.

think of the amount of wealth that is created in a place like that. fork of what that means that individual engineer who has the next great idea. if you're trying to build the next great thing, where the person at the top is not necessarily optimized for thinking that way and being as maybe as disruptive, and rather once to create a holistic environment, i'm not sure greatness comes from those boundary conditions. >> can't apple get there if they have a new leader? >> it's a multitrillion dollar category. it is something we would all love, an apple experience in our car. there are many other areas, home automation. theyple build houses, would sell more houses than anybody in the world. >> how much longevity do they have? >> they have a lot of long --

longevity. if there was any way we could wind back the clock, that's the one thing i wish would have never happened. ♪

>> what is the social capital partnership? >> i started it with a larger ambition. hopefully, a much more important mission than just investing and generating returns. in 2011, when i was leaving facebook, i saw three massive trends. the first was that everything was moving to mobile. the second was there was a massive amount of regulatory change. the third was that things were getting democratized at a rapid pace. if i took those three trends and apply them to markets, where i thought they would be most

disruptive, what would they be? those three trends and my opinion will is proportionally affect health care, educational, and financial services. those things matter. then i was thinking this is it. we need to create a platform that over the next 20-30 years can rewrite the rules of those things in a way where we can affect outcomes for people. that is my life's mission. that will feel like i did everything i was supposed to. >> you do have social in the name. >> social comes from society. i want to help society. i want to buildings for people. >> people have said that you have big exits from companies. are those world changing companies? >> when we find people that are

doing their own version of things that will create value, we get behind those guys in a big way. -- tindere tender cancer, to do breast c.o.p., starting at university for kids. >> how is social capital different from andreasen horvitz? >> phase one, phase two. >> what phase only in? the chamathng them secrets? hist is hard to find people. we given to them in the bucks. >> chamath in a bucks. a our goal is to have

pool of capital to reframe these things. out airbnb's founders for taking money off the table and not giving employees an opportunity. what did you take away from that? quick that took a lot away from that. if there is any way where we could wind back the clock, that's the one thing i wish would never have happened. .t wasn't fair to the team it wasn't fair to me. i said what i said. i wanted them to hear what i said. that's all i wanted. >> do you wish you didn't say? >> no, but i wish we did not have to deal with it in a public way. >> more bridges burned there? >> no bridges burned. probably, yes. it's a bad thing all the way around. >> this is my question. you had a problem with how they were taking money off the table.

is silicon valley ethical? is it moral? >> i think it's deeply ethical and morally great -- gray. it's not 100 years old. there aren't defined ways of doing things. we are inventing things every day. people are going to try a bunch of different things. some things will work, some things won't. no one is acting criminal. they are deeply moral. people care to do the right thing. >> the tech community is being blamed for the rising inequality. you don't require your companies to donate 1% of their time equity to philanthropy. >> that's not their job. their job is to educate people. >> you are personally invested in this fund. >> i am personally the largest

investor. >> how much? >> $120 million. beat the think you can returns of other vc funds? >> we are obliterating the market. 30 points of our above the nasdaq. alpha about the nasdaq. $15 billionved in unicorn companies in meaningful ways. >> i want to know about your poker hobby. if one day be great we were able to film this. there are 20 extremely successful business in. we play regularly and an unbelievable game in los angeles. since it, i started my own version of that here. >> who is the best poker player

in silicon valley question mark -- valley? and davesachs, goldberg, my wife. year downturn. i've lost for two straight years. >> you and your wife have been together before you were very, very rich area how do you manage that transition? >> we've made a decision that we are giving it all away. >> how do you want to be remembered? >> i want to be a person who people say generally did what he felt was the right thing. live a life that was morally true to his beliefs. way, paid off the debt to his parents. >> chamath palihapitiya thank you for joining us today on studio 1.0.

>> thank you. ♪

>> welcome to "money clip," where we bring together the most important stories, headlines, and videos. in company, nobody wants a quarter pounder anymore. mcdonald's is shaking up its front office to get customers back to the golden arches. in tech, alibaba comes out swinging in its earnings call, and it's not about the profit miss, but about the chinese government crackdown. and in motors, ford beat the estimates as drivers cannot get enough of the new f-150. in nation, the eagle rides a hog.