WEBVTT - Oracle's Biggest Gain Since 2022 and Bitcoin's Record Rise 0:00:01.280 --> 0:00:05.120 We're from Mahard where innovation, money and power. Collie in 0:00:05.240 --> 0:00:10.160 Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.200 --> 0:00:11.120 and Ed Ludlow. 0:00:25.079 --> 0:00:28.200 Amed Ludlow in San Francisco carries off on assignment. 0:00:28.320 --> 0:00:29.600 This is Bloomberg Technology. 0:00:29.640 --> 0:00:32.280 Coming up, We're going to talk earnings as Oracle posts 0:00:32.320 --> 0:00:35.560 its biggest gain in two years amid a spiking bookings 0:00:35.600 --> 0:00:40.200 in its cloud computing business. Details ahead, plus Bitcoin continuing 0:00:40.320 --> 0:00:43.760 its record breaking run as two point seven billion dollars 0:00:43.800 --> 0:00:47.080 flowed into crypto assets last week. We'll discuss with the 0:00:47.080 --> 0:00:52.400 Delta Blockchain Fund CEO, and legislation that would force TikTok's 0:00:52.400 --> 0:00:54.920 parent company to sell it or face a ban in 0:00:54.960 --> 0:00:58.240 the US is picking up speed in Congress. We'll discuss 0:00:58.320 --> 0:01:01.120 that and so much more throughout the hour. Let's get 0:01:01.200 --> 0:01:03.560 right to market. Said it was a hotter than expected 0:01:03.600 --> 0:01:06.959 CPI print that drove the narrative this morning. Actually in 0:01:07.000 --> 0:01:09.840 the equity space, it was kind of a negative reaction 0:01:09.920 --> 0:01:12.679 at first. We haven't really changed our mind about the 0:01:12.720 --> 0:01:15.720 idea that if a rate cut is coming from the 0:01:15.800 --> 0:01:18.320 Federal Reserve, it isn't coming till June. But actually look 0:01:18.319 --> 0:01:20.039 at the Nazak one hundred. We're now up by more 0:01:20.040 --> 0:01:23.040 than a percentage point. A lot of the legwork coming 0:01:23.040 --> 0:01:24.600 from some of the earning story that we're going to 0:01:24.600 --> 0:01:28.840 get into. Semiconductors also higher, outperforming one point four percent, even. 0:01:28.640 --> 0:01:30.119 As you do see rates creep high. 0:01:30.240 --> 0:01:32.800 US ten y yield was up about five basis points 0:01:32.800 --> 0:01:35.679 four point one four percent, and now Bitcoin is down 0:01:35.720 --> 0:01:38.440 one point three six percent at this moment in time, 0:01:39.000 --> 0:01:42.280 just below or above sorry, seventy one thousand US dollars 0:01:42.319 --> 0:01:45.600 per token. I talked about the kind of upside inequities 0:01:45.680 --> 0:01:48.960 Nazak one hundred. It's probably Oracle that accounts for a 0:01:48.960 --> 0:01:51.160 lot of that. At one point in the session, on 0:01:51.200 --> 0:01:54.000 course for its biggest jump since the end of December 0:01:54.240 --> 0:01:58.559 twenty twenty one, the story twenty five percent top line 0:01:58.600 --> 0:02:00.760 growth in its cloud business. If you look at all 0:02:00.760 --> 0:02:04.680 of the analyst notes, there is an AI tailwind here 0:02:04.800 --> 0:02:07.440 is Oracle tries to compete with the hyperscalers. Let's get 0:02:07.520 --> 0:02:10.000 right to that conversation and bring in Bloomberg's Brody Ford, 0:02:10.280 --> 0:02:11.959 the Oracle whisperer in chief. 0:02:12.120 --> 0:02:14.120 I mean that for me was the story right, you know. 0:02:14.200 --> 0:02:18.160 Overall top line growth seven percent matched estimates, but that 0:02:18.280 --> 0:02:20.760 performance in the cloud unit that was pretty good. 0:02:21.600 --> 0:02:25.520 Yeah, they booked a lot more business than anybody expected. 0:02:25.639 --> 0:02:28.919 And the executives attributed that to the cloud business, saying 0:02:28.919 --> 0:02:33.480 that right now everybody needs more cloud computing power. Era 0:02:33.600 --> 0:02:37.760 of AI training models plus just mass digitization means that 0:02:38.160 --> 0:02:40.720 there's not enough computing power to go around. And a 0:02:40.760 --> 0:02:42.880 lot of folks are signing that piece of paper with 0:02:43.000 --> 0:02:45.400 Oracle and we should see that turned into revenue in 0:02:45.440 --> 0:02:46.240 the coming quarters. 0:02:48.040 --> 0:02:50.520 Brody, one of the great things about you is you 0:02:50.560 --> 0:02:54.680 can take any technology company that on paper, I'm saying 0:02:54.680 --> 0:02:58.360 on paper can be a bit dry, right. They used 0:02:58.400 --> 0:03:02.359 all this jargon that we don't fully understand. In Oracles case, 0:03:02.840 --> 0:03:06.880 remaining performance obligation. If anyone phones you up and said 0:03:06.880 --> 0:03:09.840 that you'd hang up, you fall asleep. But actually, in 0:03:09.880 --> 0:03:14.079 Oracles case, this is a mighty impressive backlog of business, 0:03:14.320 --> 0:03:15.760 and the street's really paying attention. 0:03:16.720 --> 0:03:19.840 Yeah, absolutely, it is the backlog, as you said, right, 0:03:19.840 --> 0:03:22.839 it's business that's been signed. And what's interesting about that 0:03:23.280 --> 0:03:25.480 is the reason it's a backlog is because they don't 0:03:25.520 --> 0:03:28.280 have the physical space, right, I mean, the cloud isn't 0:03:28.320 --> 0:03:32.440 this infinite thing in the Sky. It's data centers in Virginia, right, 0:03:32.440 --> 0:03:34.839 and they need to build more of them. They said 0:03:34.880 --> 0:03:37.040 that in the next year they're going to spend ten 0:03:37.080 --> 0:03:40.680 billion dollars building out their data center presence around the country. 0:03:40.960 --> 0:03:43.320 And think about that capex compared to a couple of 0:03:43.400 --> 0:03:45.000 years ago, it was two billion. I mean, this is 0:03:45.000 --> 0:03:48.400 a huge increase and that's what's giving investors confidence that 0:03:48.440 --> 0:03:51.800 they truly are building out their footprint in response to 0:03:51.880 --> 0:03:52.800 customer demand. 0:03:54.120 --> 0:03:57.200 So I talked about the AI tailwind. That is what 0:03:58.080 --> 0:04:01.960 the bulls see here. These Oracles AI story, Where did 0:04:02.000 --> 0:04:04.360 they fit in and everything that's going on. 0:04:05.000 --> 0:04:07.720 Yeah, I mean every software company wants to say that 0:04:07.760 --> 0:04:10.720 any outperformance is due to AI Oracles no different. It's 0:04:10.720 --> 0:04:13.240 hard to exactly parts how much is coming from it. 0:04:13.640 --> 0:04:16.520 But there is some real third party voices here saying 0:04:16.520 --> 0:04:20.479 that Oracle's cloud is particularly good for training and influencing 0:04:20.480 --> 0:04:26.240 these AI models, which are notoriously resource intensive, right, And 0:04:26.279 --> 0:04:28.200 so we've heard of a lot of folks going to 0:04:28.279 --> 0:04:32.920 Oracle to train their models, and yeah, so that has 0:04:32.960 --> 0:04:37.720 been fueling some of this demand, but there is some skepticism, right. 0:04:38.480 --> 0:04:41.400 Brent phil was on here yesterday saying that the actual 0:04:41.600 --> 0:04:45.080 current amount of revenue coming from AI workloads is not massive, 0:04:45.640 --> 0:04:48.400 but the idea is that in the coming quarters, in 0:04:48.440 --> 0:04:51.160 the coming year, as AI becomes a more mainstream part 0:04:51.200 --> 0:04:53.160 of the tech stack, that that will increase. 0:04:54.440 --> 0:04:57.039 All right, Bloomberg's Brady Ford and as we talked about earlier, 0:04:57.600 --> 0:05:00.599 Oracle a real kind of contribute to to the upside 0:05:00.640 --> 0:05:02.839 we see in ectees, particularly in the tech sector. 0:05:03.080 --> 0:05:04.080 This morning. Good Seamate. 0:05:04.160 --> 0:05:06.599 Now let's turn to another top story we've been tracking 0:05:06.600 --> 0:05:10.799 for about a week, latest in Elon Musk's lawsuit against 0:05:10.839 --> 0:05:13.960 open ai and Sam Outman. Open Ai saying in a 0:05:14.040 --> 0:05:19.200 court filing that the billionaires claims quote rest on convoluted, 0:05:19.400 --> 0:05:24.720 often incoherent, factual premises. Let's bring in Bloomberg's AI reporter 0:05:25.320 --> 0:05:29.320 Rachel Metz. What is it that open ai is trying 0:05:29.360 --> 0:05:32.200 to say here in normal people speak. 0:05:31.960 --> 0:05:36.520 Rachel, Open ai is actually echoing in this corre filing 0:05:36.839 --> 0:05:39.600 a number of the things that they said previously in 0:05:39.839 --> 0:05:41.880 a blog post that they put up that had a 0:05:41.920 --> 0:05:45.240 lot of juicy emails. This was last week, and also 0:05:45.320 --> 0:05:50.160 some internal memos that we got a hold of recently. Basically, 0:05:50.160 --> 0:05:52.760 they're saying there was no agreement for us to do 0:05:53.000 --> 0:05:57.120 what you said, what you're saying is incorrect, and you 0:05:57.160 --> 0:05:59.800 know a few other tidbits of just saying as you 0:05:59.839 --> 0:06:04.159 say said, your argument is incoherent. And what's funny about 0:06:04.200 --> 0:06:07.280 this is it is a procedural filing that they were 0:06:07.279 --> 0:06:09.520 putting in this filing to say that we want this 0:06:09.600 --> 0:06:11.599 court case to be classified as what's known as a 0:06:11.600 --> 0:06:16.920 complex case in California and then I'll give it a 0:06:16.960 --> 0:06:19.680 tiny bit of treatment in a different way by a 0:06:19.760 --> 0:06:23.000 judge who you know can understand this stuff and also 0:06:23.320 --> 0:06:24.720 like get things done quickly. 0:06:26.080 --> 0:06:27.400 Well, there's also a reason why. 0:06:27.480 --> 0:06:29.800 So Vinode Koestler, who is one of the early open 0:06:29.839 --> 0:06:33.680 ai investors, was on the show yesterday and one of 0:06:33.720 --> 0:06:36.800 the things that he was arguing for was that, you know, 0:06:36.880 --> 0:06:41.000 open ai is critically important from a national security context, 0:06:41.040 --> 0:06:44.599 right if America wants to be competitive in AI, then 0:06:44.640 --> 0:06:46.960 we need to support open ai in doing that. And 0:06:47.000 --> 0:06:49.680 I my understanding is that one of the things open 0:06:49.720 --> 0:06:53.320 ai did with this filing is basically to say, hey, 0:06:53.760 --> 0:06:56.640 if we go through with this lawsuit, the discovery process 0:06:56.920 --> 0:07:00.679 will give away all our secrets in the context of AI. 0:07:02.160 --> 0:07:02.360 Yeah. 0:07:02.640 --> 0:07:05.480 See, they did argue that although to be fair. 0:07:05.760 --> 0:07:06.720 One could argue that. 0:07:06.640 --> 0:07:09.760 Any discovery process might have a risk of bringing up 0:07:09.800 --> 0:07:11.680 things that you don't watch over at the public grade. 0:07:11.680 --> 0:07:14.600 I mean, that's part of what makes it just interesting 0:07:14.640 --> 0:07:16.440 to the rest of us. Right, What comes out in 0:07:16.480 --> 0:07:19.880 the discovery process can be very interesting. That could be, 0:07:20.120 --> 0:07:24.280 But hopefully we'll get some interesting information and some of 0:07:24.320 --> 0:07:26.480 the things that they are hoping to keep a prietary 0:07:26.560 --> 0:07:27.600 will beget proprietary. 0:07:28.440 --> 0:07:28.720 All right. 0:07:28.720 --> 0:07:31.480 Bloombers Rachel Metz covering a story that we've been covering 0:07:31.520 --> 0:07:34.280 almost daily for a week now, and we will continue 0:07:34.520 --> 0:07:36.880 to do so. Another big story in the world of 0:07:36.920 --> 0:07:40.760 technology and video and Data Bricks are facing copyright infringement 0:07:40.840 --> 0:07:44.680 lawsuits from a group of authors alleging the company's respective 0:07:44.720 --> 0:07:48.720 AI models are trained on their books without permission. The 0:07:48.760 --> 0:07:52.720 pair of proposed class actions, filed in San Francisco Federal court, 0:07:53.120 --> 0:07:56.040 alleged Nvidia and Data Bricks built their models on a 0:07:56.120 --> 0:08:00.120 library of pirated digital e books known as Books three. 0:08:00.200 --> 0:08:02.400 The suits were filed in March eighth, and they joined 0:08:02.440 --> 0:08:06.240 dozens of authors and copyright owners around the country suing 0:08:06.360 --> 0:08:10.120 top AI companies, and those include open ai and Meta 0:08:10.320 --> 0:08:13.440 all Right. Coming up on Bloomberg Technology Bitcoin hovers near 0:08:13.480 --> 0:08:17.800 that all time high. Can the cryptocurrency run be sustained? 0:08:17.840 --> 0:08:21.400 Seventy one six nine two dollars per token right now, 0:08:21.520 --> 0:08:24.080 we're also taking a look at shares of ARM, the 0:08:24.200 --> 0:08:25.040 chip design firm. 0:08:25.200 --> 0:08:27.559 'tis a story as old as time. 0:08:28.200 --> 0:08:31.240 The lockup is ending, and the concern from shareholders is 0:08:31.240 --> 0:08:34.199 that those insiders that are now free to sell shares 0:08:34.559 --> 0:08:38.640 will do so. Of course, it's a story that happens 0:08:39.040 --> 0:08:41.599 for many in the immediate post IPO and aftermath. And 0:08:41.640 --> 0:08:44.160 think about the number of technius that have listed in 0:08:44.200 --> 0:08:46.560 the last six months or so. Continue tracking that soft 0:08:46.679 --> 0:08:49.120 three tens to one percent on on. This is Bloomberg 0:08:49.120 --> 0:09:04.760 Technology Bitcoin's record breaking run, showing few signs of slowing, 0:09:04.800 --> 0:09:09.040 with large amounts of capital inflows strong demand for the cryptocurrencies, 0:09:09.040 --> 0:09:11.520 so it reached an all time high of seventy two, 0:09:11.840 --> 0:09:14.840 eight hundred and eighty one dollars on Monday, with some 0:09:15.000 --> 0:09:19.640 investors eyeing a target of eighty thousand US dollars in 0:09:19.720 --> 0:09:23.920 the medium term. Meanwhile, Gray Scale Investments is looking to 0:09:24.000 --> 0:09:27.520 launch a clone of the world's largest bitcoin fund after 0:09:27.520 --> 0:09:31.360 it saw more than eleven billion dollars of outflows from 0:09:31.400 --> 0:09:36.520 its GBTC fund, the analysis from Cavita Gupta, Delta Blockchain 0:09:36.600 --> 0:09:40.480 fun founder and general partner. So there's something going on 0:09:40.520 --> 0:09:43.480 in the short term, and then there's the debate about 0:09:43.480 --> 0:09:45.840 what's going on in the long term. Let's start with 0:09:45.880 --> 0:09:50.439 the short term. The flows data seems to imply sustained 0:09:50.559 --> 0:09:56.040 momentum behind at least institutional interest right in bitcoin. Just 0:09:56.040 --> 0:09:58.080 give me your assessment of the hear in the now. 0:10:00.120 --> 0:10:03.200 So if I look at the short term, ed I 0:10:03.440 --> 0:10:07.559 really see that the Bitcoin ETF demand has surpassed a 0:10:07.640 --> 0:10:11.240 lot of people's expectations. I mean, traditionally we have always 0:10:11.280 --> 0:10:15.960 expected that before bitcoin having the prices always goes up. 0:10:16.280 --> 0:10:19.560 But even when we see the sell pressure from the market, 0:10:19.559 --> 0:10:23.160 people who have been through the beer had actually hold it, 0:10:23.640 --> 0:10:25.960 we see the buy is just too much. So it's 0:10:26.000 --> 0:10:27.880 been a very interesting cycle for bitcoin. 0:10:29.120 --> 0:10:31.760 Something that I've been bringing up on air in the 0:10:31.840 --> 0:10:34.840 last few days, if not weeks, is that there is 0:10:34.880 --> 0:10:39.800 a scenario where those that are bullish from cryptocurrencies, particularly bitcoin, 0:10:40.240 --> 0:10:43.720 and those that are bearish on bitcoin, seem to agree 0:10:43.760 --> 0:10:46.400 on one thing. That is, from where we are now, 0:10:46.800 --> 0:10:50.360 it is likely Bitcoin goes to a higher milestone we 0:10:50.440 --> 0:10:53.400 just talked about eighty thousand as a medium term call. 0:10:53.640 --> 0:10:56.600 I've also seen one hundred thousand, but there are many 0:10:56.640 --> 0:10:59.520 that agree that it will then pull back. What's your 0:10:59.559 --> 0:11:01.640 understand the why behind that? 0:11:03.040 --> 0:11:07.160 I think combination of things. The first thing is after 0:11:07.200 --> 0:11:09.720 the bitcoin having we always see some sort of a 0:11:09.760 --> 0:11:13.160 plateau or ten to twenty percent pull in squeeze. We 0:11:13.200 --> 0:11:15.240 are also expecting a lot of people in the market 0:11:15.280 --> 0:11:18.280 are expecting interest rate to be cut down before elections, 0:11:18.720 --> 0:11:21.439 and I think the elections being this year in the 0:11:21.520 --> 0:11:25.400 United States going to really define how the political roadmap, 0:11:25.559 --> 0:11:29.280 whether pro crypto or not that much procrypto, going to define. 0:11:29.760 --> 0:11:33.400 But beyond bitcoin, we have already started seeing the technology rally, 0:11:33.480 --> 0:11:36.800 which is with et and Polygon and Solana, so I 0:11:36.840 --> 0:11:40.160 think that's also going to define this roadmap of bitcoin prices. 0:11:42.320 --> 0:11:46.040 There is an interesting news story this very morning where 0:11:46.080 --> 0:11:50.560 the Risbank governor, a central banker, gave his opinion that 0:11:50.640 --> 0:11:57.520 he wanted to minimize bitcoins I guess influence presence in 0:11:57.559 --> 0:12:01.920 the financial sector. He said, I want as little bitcoin 0:12:02.000 --> 0:12:05.760 as possible in the Swedish financial system. What do you 0:12:05.800 --> 0:12:08.120 make of the central bank governor weighing in like that. 0:12:09.400 --> 0:12:12.040 I mean, we have seen that again and again every 0:12:12.120 --> 0:12:18.200 bull cycle. We see some country or some influential Web 0:12:18.240 --> 0:12:21.520 two world institution coming and saying this could be a problem, 0:12:21.640 --> 0:12:24.960 and then in the bear market they're like, we told 0:12:25.000 --> 0:12:28.480 you it's a problem. And then more institutional adoption, more 0:12:28.480 --> 0:12:31.440 retail adoption, and then more and more states and countries 0:12:31.480 --> 0:12:35.840 started using it. I mean, so it's not new said that. 0:12:36.120 --> 0:12:39.760 I think it's beyond any particular state, city, country at 0:12:39.760 --> 0:12:42.560 this point of time, all the way to us where 0:12:42.640 --> 0:12:46.120 now we do have bitcoin ETFs. We are only three 0:12:46.200 --> 0:12:48.880 years back, the question was bitcoin will be even legal 0:12:49.000 --> 0:12:50.400 or will it exist or not? 0:12:50.520 --> 0:12:51.920 Back in twenty one twenty. 0:12:51.640 --> 0:12:55.440 Two itself, the central bank governor's argument was that it's 0:12:55.440 --> 0:12:57.920 not a threat to financial stability, but he's worried about 0:12:57.920 --> 0:13:01.280 the impact on consumers that may or may choose to hold. 0:13:01.040 --> 0:13:02.880 That as a risk asset. 0:13:03.280 --> 0:13:06.280 What is the big picture that's happening here beyond bitcoin? 0:13:06.720 --> 0:13:09.120 Where what is the state of industry and right now 0:13:09.120 --> 0:13:11.520 for Cryptakeovita, I. 0:13:11.440 --> 0:13:14.160 Think it's all about technology. We usually it like you 0:13:14.200 --> 0:13:16.720 and me have talked about this before. We always talked 0:13:16.720 --> 0:13:19.400 about just the bitcoin and the prices, Like even when 0:13:19.440 --> 0:13:22.000 we talk about anything in this space, we always talk 0:13:22.040 --> 0:13:24.880 about whatever has caught height, like oh, NFT is done by. 0:13:24.760 --> 0:13:26.160 Some Hollywood actor. 0:13:26.559 --> 0:13:28.920 But the real thing out here is the technology, the 0:13:28.960 --> 0:13:32.520 decentralization of things, which are now used by some of 0:13:32.559 --> 0:13:36.000 the biggest companies, some of the biggest institutions globally, and 0:13:36.040 --> 0:13:38.600 that's why you see ethereum rally as the second biggest 0:13:38.640 --> 0:13:39.559 asset currency. 0:13:39.840 --> 0:13:40.880 Then you're seeing. 0:13:40.600 --> 0:13:43.760 All coins which I want to call technology tokens. Actually, 0:13:44.000 --> 0:13:47.640 whether it's Polygon, whether it's Solana, whether it's arbitrum. Optimism 0:13:47.720 --> 0:13:50.000 is doing very well, which is letting the transaction per 0:13:50.080 --> 0:13:54.400 second to be way much more scalable and much less 0:13:54.480 --> 0:13:57.800 cost So I think it is about the technology that 0:13:57.920 --> 0:14:00.839 which is not just Web three native, but adoption and 0:14:00.920 --> 0:14:06.000 supply chains, adoption in international remittances, adoption and stable coin yields. 0:14:06.280 --> 0:14:08.440 And I think we need to start talking in the 0:14:08.480 --> 0:14:12.560 mainstream media more about the underlining tech than just the 0:14:12.559 --> 0:14:16.120 price movement. It's really amazing when we have trillion dollars 0:14:16.160 --> 0:14:19.200 to talk about, but I think the technology should start 0:14:19.240 --> 0:14:20.720 making the highlights now. 0:14:22.160 --> 0:14:26.880 On the technology and the long term there seems to 0:14:27.000 --> 0:14:34.560 be bipartisan not support, but probably acknowledgment of what's happening 0:14:34.560 --> 0:14:38.600 with cryptocurrencies and the underlying blockchain technologies. Do you agree 0:14:38.600 --> 0:14:41.360 with that that that's what's happening in DC in particular. 0:14:42.480 --> 0:14:45.600 Yeah, but I also feel like DC is much more 0:14:45.680 --> 0:14:48.440 informed today than what it was five years or four 0:14:48.520 --> 0:14:51.560 years back. But at the same time, we should look 0:14:51.560 --> 0:14:54.480 at blockchain as a more of a trusted technology than 0:14:54.640 --> 0:14:57.080 just oh, whether it's a cash currency bitcoin. So just 0:14:57.120 --> 0:14:58.720 to give you a quick example, because you were just 0:14:58.760 --> 0:15:02.840 talking about open AI today, you can scrap data from anywhere, 0:15:02.880 --> 0:15:05.680 but doing the verification of that data has always been 0:15:05.720 --> 0:15:08.240 a problem with the social media and the AI chat 0:15:08.280 --> 0:15:11.280 GPT process, and that's what gives you on blockchain, the 0:15:11.360 --> 0:15:14.920 verification of the data, the ownership of that content and 0:15:15.000 --> 0:15:16.960 whom to give it back to if it's their an 0:15:16.960 --> 0:15:20.240 ip right associated with it. Very similar to what New 0:15:20.320 --> 0:15:22.640 York Times and a lot of news media actually tried 0:15:22.680 --> 0:15:25.200 to blame and see open GPT. I think we are 0:15:25.200 --> 0:15:28.400 forgetting that at the end of the day, whether it's ethereum, 0:15:28.400 --> 0:15:32.040 where it's blockchain, any of those things. Bitcoin, we are 0:15:32.080 --> 0:15:38.520 talking about the underlining traceability, verification, decentralization technology, and I 0:15:38.560 --> 0:15:41.720 think going back to DC. More and more people are 0:15:41.720 --> 0:15:44.880 getting informed about it, but just the charm of talking 0:15:44.880 --> 0:15:48.920 about INDK Bitcoin prices are just too difficult to get 0:15:48.960 --> 0:15:49.720 away from. 0:15:50.320 --> 0:15:52.240 We didn't get to Ethereum, but I would note that 0:15:52.280 --> 0:15:55.760 there are lots of headlines about investment into the Ethereum ecosystem, 0:15:55.840 --> 0:15:58.760 which you'd point out Cavita, Gitta, the Delta blockchain. Find 0:15:58.760 --> 0:15:59.200 great to have. 0:15:59.160 --> 0:15:59.680 You on the show. 0:16:07.600 --> 0:16:09.880 Okay, it's time for talking tech and first up, Jamie 0:16:09.920 --> 0:16:13.800 Diamond has once again hailed artificial intelligence, pointing to the 0:16:13.840 --> 0:16:18.360 technologies quote unbelievable potential for the banking industry. The JP 0:16:18.480 --> 0:16:23.400 Morgan CEO says ais use across functions like risk, fraud, marketing, 0:16:23.520 --> 0:16:27.200 customer relations has caused it to grow in importance within 0:16:27.600 --> 0:16:31.520 the company. And Jaomi, a Beijing based electronics firm best 0:16:31.600 --> 0:16:34.720 known for its smartphones, had its biggest intra day share 0:16:34.760 --> 0:16:37.520 gain in more than a year after the company announced 0:16:37.560 --> 0:16:41.000 it will start selling its long awaited electric. 0:16:40.640 --> 0:16:42.120 Vehicles this month. 0:16:42.320 --> 0:16:45.720 The company's multi billion dollar bet marks its entry into 0:16:45.720 --> 0:16:48.880 a red hot contest in China's EV market, which is led, 0:16:48.920 --> 0:16:53.360 of course by Tesla and BYD plus. Legislation that would 0:16:53.400 --> 0:16:57.280 force TikTok's Chinese parent to sell itself. All face of 0:16:57.360 --> 0:17:00.480 ban in the US is picking up speeding Congress, posing 0:17:00.520 --> 0:17:05.000 a dilemma for Republican lawmakers after former President Donald Trump 0:17:05.320 --> 0:17:09.080 reversed his previous stance and suggested the app should not 0:17:09.160 --> 0:17:12.959 be banned, after saying all young TikTok users would quote 0:17:13.280 --> 0:17:17.359 go crazy without it. Let's stick with TikTok, and let's 0:17:17.359 --> 0:17:20.320 turn to its current place in the political landscape. Every 0:17:20.359 --> 0:17:24.240 election cycle, one social media platform emerges ahead of the 0:17:24.280 --> 0:17:27.280 rest as a means of connecting with young voters. In 0:17:27.280 --> 0:17:32.320 this cycle, all signs point to TikTok, but is campaigning 0:17:32.359 --> 0:17:37.360 on TikTok even worth it. Bloomberg's Alex Barrinka has done 0:17:37.400 --> 0:17:41.760 the hands on and scientific reporting of examining Katie Porter's 0:17:41.800 --> 0:17:44.800 campaign for a run for the Senate seat right here 0:17:44.840 --> 0:17:48.000 in California, which did rely heavily on TikTok. 0:17:48.320 --> 0:17:50.120 Explain your epidology, Alex. 0:17:50.560 --> 0:17:54.480 Yeah, So, I looked at Katie Porter and opponent Adam Shift, 0:17:54.480 --> 0:17:58.160 who was the front market runner, and their performance on TikTok. 0:17:58.400 --> 0:18:01.480 Porter is known as kind of a below of TikToker. 0:18:01.920 --> 0:18:06.240 Her engagement rates are better than even the best influencers, 0:18:06.440 --> 0:18:08.399 so I wanted to see how that played out in 0:18:08.440 --> 0:18:12.040 the open race for the Senate primary, which goes to 0:18:12.080 --> 0:18:15.320 the top two vote getters regardless of party. While on TikTok, 0:18:15.400 --> 0:18:18.560 Katie Porter well outperformed out of shift. She posted half 0:18:18.600 --> 0:18:21.919 as many videos but had twice as many views total. 0:18:22.200 --> 0:18:25.439 Her engagement rates were stellar, and going into the primary 0:18:26.600 --> 0:18:31.879 in early March, she was pulling incredibly well with young voters. 0:18:32.040 --> 0:18:35.439 The vast majority of voters under thirty preferred Porter. The 0:18:35.560 --> 0:18:39.760 problem with campaigning on social media was laid bare though 0:18:39.840 --> 0:18:42.159 with the results. Porter came in third, which means she 0:18:42.200 --> 0:18:46.199 will not be on the ballot in November. Why ed, Well, 0:18:46.320 --> 0:18:50.000 those young people on TikTok didn't show up to the polls. 0:18:50.200 --> 0:18:52.200 Only ten percent of voters were under the age of 0:18:52.240 --> 0:18:55.639 thirty in the primary, forty seven percent were over the 0:18:55.680 --> 0:18:58.119 age of sixty five, And Ed, I just don't know 0:18:58.160 --> 0:19:00.200 if those folks are spending a lot of their time 0:19:00.280 --> 0:19:00.840 on TikTok. 0:19:02.040 --> 0:19:04.040 I go from being the host of the technology shows 0:19:04.040 --> 0:19:06.480 being the one time political reporter, and I was up 0:19:06.520 --> 0:19:09.879 on Super Tuesday. Hear at the desk covering California. 0:19:10.040 --> 0:19:10.680 Is so right? 0:19:11.080 --> 0:19:13.600 There are the same number of voters in California over 0:19:13.720 --> 0:19:17.000 age sixty five as under thirty five. The difference is 0:19:17.040 --> 0:19:19.560 the under thirty fives didn't show up, and in Katie 0:19:19.600 --> 0:19:22.439 Porter's case, TikTok didn't work. But clearly it has a 0:19:22.480 --> 0:19:25.320 place in this election, right And I think there's about 0:19:25.320 --> 0:19:28.159 one hundred and seventy million US users of TikTok. I 0:19:28.200 --> 0:19:30.800 think I'm right in saying Alex So just put that 0:19:30.840 --> 0:19:33.200 into perspective here in the context of this bill that's 0:19:33.240 --> 0:19:34.160 playing out in DC. 0:19:35.160 --> 0:19:37.800 There are and it really kind of this this primary 0:19:37.920 --> 0:19:41.200 lays bear also a pain point of the Democrats. They 0:19:41.240 --> 0:19:43.159 really need young voters to show up. They showed up 0:19:43.200 --> 0:19:45.560 in hordes for Biden. They showed up in the midterms 0:19:45.600 --> 0:19:48.840 and the last cycle and stopped that prophesized red wave. 0:19:49.160 --> 0:19:52.000 So for those one hundred and seventy million Americans, forty 0:19:52.040 --> 0:19:54.119 three percent of them say they often get their news 0:19:54.160 --> 0:19:58.280 on TikTok. So this is certainly a place for politicians 0:19:58.320 --> 0:20:02.280 to spend their time because those traditional TV AD dollars, 0:20:02.320 --> 0:20:05.040 they're looking away from those to reach younger voters. I 0:20:05.040 --> 0:20:08.480 think the important thing in November, particularly for a camp 0:20:08.520 --> 0:20:11.640 like Biden who's now on TikTok with a campaign account 0:20:11.880 --> 0:20:14.840 is not only reaching them, not only speaking the Internet 0:20:14.960 --> 0:20:17.960 language like Katie Porter was so good at with memes 0:20:18.040 --> 0:20:21.639 and references to pop culture, but also getting those folks 0:20:21.640 --> 0:20:24.720 to not just agitate online but get them into the polls. 0:20:24.960 --> 0:20:28.800 Bridging that gap is what political experts and digital strategists 0:20:28.840 --> 0:20:31.760 told me is going to be the absolute hardest thing, 0:20:32.119 --> 0:20:35.359 And for Biden in particular, as he battles some of 0:20:35.400 --> 0:20:38.520 the narrative around his age, TikTok seems to be a 0:20:38.520 --> 0:20:42.320 place where he can kind of be relatable, be authentic, 0:20:42.680 --> 0:20:44.000 be a candidate. 0:20:43.520 --> 0:20:44.360 For those voters. 0:20:44.480 --> 0:20:46.399 Again, he's going to have to clear some of the 0:20:46.440 --> 0:20:49.320 bars to get them to not just vote with their fingers, 0:20:49.400 --> 0:20:51.840 with their likes and comments, but to get on their 0:20:51.880 --> 0:20:53.199 feet and head out to the polls. 0:20:54.119 --> 0:20:55.480 Bloomberg A xiety's for Rinkov. 0:20:55.600 --> 0:20:58.520 I really recommend you read that reporting on Katie Porter 0:20:58.880 --> 0:20:59.600 on Bloomberg. 0:21:00.160 --> 0:21:01.200 Coming up on the show, we're going to. 0:21:01.119 --> 0:21:04.480 Take the pulse of the IPO market and Reddit with 0:21:04.640 --> 0:21:06.720 Raymaker Securities Greg Martin. 0:21:06.800 --> 0:21:08.560 Let's check a look of the markets. 0:21:08.560 --> 0:21:10.960 These are your major indices that we're looking at, and 0:21:10.960 --> 0:21:12.640 I think the story is after we got that hot 0:21:12.640 --> 0:21:16.280 CPI print markets and traders were braced for the worst 0:21:16.280 --> 0:21:20.320 case scenario, but in reality, nothing's really changed. The market 0:21:20.359 --> 0:21:23.800 is still betting that a first rate cut would come 0:21:23.840 --> 0:21:26.280 in June, if at all. And you look at the 0:21:26.880 --> 0:21:30.560 NASDAK one hundreds of example slight outperformance relative d S 0:21:30.600 --> 0:21:32.320 and P five hundred. A big part of that, as 0:21:32.320 --> 0:21:35.920 we know, is Oracle and it's strong earnings. This is 0:21:35.920 --> 0:21:50.440 Bloomberg Technology. Welcome back to Bloomberg Technology, Ed Ludlow here 0:21:50.720 --> 0:21:54.560 in San Francisco, Okay. Reddit's IPO is still the talk 0:21:54.600 --> 0:21:58.680 of well Reddit. Last night the company posted an ama 0:21:58.840 --> 0:22:01.840 or in this case and our ask me almost anything, 0:22:02.000 --> 0:22:06.280 and in it, reddit admins invited redditors to ask questions 0:22:06.480 --> 0:22:10.080 to the CEO, COO, and CFO through the end of 0:22:10.160 --> 0:22:13.440 March twelfth. Reddit then plans to take a selection of 0:22:13.480 --> 0:22:16.560