WEBVTT - Lyft's Record Plunge and Focus on the Super Bowl 0:00:13.280 --> 0:00:15.800 I'm Caroline Hired of Bloomberg's World headquarters in New York, 0:00:16.400 --> 0:00:19.079 med Ludlow in San Francisco. This is Bloomberg Technology and 0:00:19.200 --> 0:00:23.480 Activists to artificial Intelligence, two stocks just falling off a cliff. Caroline, 0:00:23.520 --> 0:00:25.840 What a week in the world of technology. The earnings 0:00:25.840 --> 0:00:29.080 are becoming thick and fast, we still start to digest them, 0:00:29.120 --> 0:00:31.360 and of course we look ahead to a pretty important 0:00:31.400 --> 0:00:33.720 big game come Sunday. Let's talk about all of it 0:00:33.760 --> 0:00:36.199 because coming up at a record plunge for Lift, the 0:00:36.320 --> 0:00:39.680 ride sharing giant sees shares plummet as it loses market 0:00:39.680 --> 0:00:42.040 share to competitor Uber or how that lates for you, 0:00:43.159 --> 0:00:49.040 and using automated intelligence to combat automated intelligence will speak 0:00:49.080 --> 0:00:51.920 to the CEO or of Seeker on how his company's 0:00:51.920 --> 0:00:55.960 technology is fighting the growing problem of misinformation in general. 0:00:56.000 --> 0:00:59.200 Tid Ai plus a countdown to the Super Bowl, from 0:00:59.240 --> 0:01:02.120 tickets to better things to advertising, will run through what 0:01:02.240 --> 0:01:04.679 to expect and even what to order when you're watching 0:01:04.680 --> 0:01:07.480 the big game this Sunday, is it Califlat All that 0:01:07.560 --> 0:01:08.959 and so much more coming up, Let's have a quick 0:01:09.040 --> 0:01:10.600 check or what's happening in the market. We are on 0:01:10.600 --> 0:01:12.800 a down day again, it is all about the MACO. 0:01:12.880 --> 0:01:14.800 It's more about the Federal Reserve. It's all about Therefore, 0:01:14.840 --> 0:01:17.320 tech stocks falling as boring costs rise, we yields up 0:01:17.319 --> 0:01:20.160 seven basis points in the tenure nazdac Off. Once again, 0:01:20.319 --> 0:01:23.039 we're seeing the Vixen next just stabilizing around twenty, but 0:01:23.120 --> 0:01:27.119 volatility is elevated as we think that these swirling movements 0:01:27.160 --> 0:01:29.039 in stocks are likely to prevail. Let's kick in on 0:01:29.080 --> 0:01:31.000 and show you what it meant for the week, and 0:01:31.120 --> 0:01:33.160 as that one was under pressure. In fact, is the 0:01:33.160 --> 0:01:38.360 worst week for this particular benchmark since December. So this year, yeah, 0:01:38.520 --> 0:01:40.920 I think. I mean seeing a similar story in individual names. 0:01:40.920 --> 0:01:43.240 It's about what happened Friday and then what happened in 0:01:43.240 --> 0:01:44.880 the week. You look at like a name like Tesla 0:01:44.959 --> 0:01:47.840 down five percent Friday, but actually finishing higher on the 0:01:47.840 --> 0:01:51.279 week by almost four percent. Alphabet continuing slide, more bodies 0:01:51.320 --> 0:01:53.920 decline of half a percentage point, but actually it's worst 0:01:53.920 --> 0:01:57.280 weeks since November, believe it or not. Caroline down for 0:01:57.320 --> 0:02:00.760 a third consecutive straight straight day. First that's happened since 0:02:00.760 --> 0:02:03.840 early December. So the market's really seizing onto those mishaps 0:02:03.880 --> 0:02:07.840 around its barred AI offering Spotify interesting up three point 0:02:07.920 --> 0:02:10.560 six percent. Dig into this in the show later on 0:02:10.600 --> 0:02:14.200 about Value Act taking a stake, supporting the strategy around 0:02:14.280 --> 0:02:16.840 cost cuts, and then of course Lift. I've got a 0:02:16.880 --> 0:02:19.080 different chart for you on Lift that that tells the 0:02:19.120 --> 0:02:22.400 story A picture paints a thousand words. Mr. Director, Give 0:02:22.440 --> 0:02:25.240 me my terminal chart, because this is the biggest drop 0:02:25.320 --> 0:02:27.640 on record for Lift. You can see the size and 0:02:27.680 --> 0:02:30.399 scope of the reaction from investors. I want to get 0:02:30.400 --> 0:02:33.440 more straightaway on Lift with Bloomberg's Jackie Daviloss, who covers 0:02:33.480 --> 0:02:36.400 all things gig economy and ride sharing in Washington. Jackie, 0:02:36.480 --> 0:02:40.480 what was the reaction to this plunge? Wall Street is 0:02:40.840 --> 0:02:44.240 very unhappy and you saw it in just the massive 0:02:44.320 --> 0:02:48.280 wave of downgrades a near day after the results yesterday, 0:02:48.520 --> 0:02:51.880 you had about eight major banks looking at the stock 0:02:51.919 --> 0:02:53.840 and saying, we don't know if it's worth as much 0:02:53.880 --> 0:02:57.919 as it was. Among those, you have JP Morgan basically saying, 0:02:57.960 --> 0:03:00.720 you know, we don't know if the right share rebound 0:03:00.840 --> 0:03:03.040 is really lifting all boats and Lift is missing out. 0:03:03.120 --> 0:03:07.000 You had Morgan Stanley looking at the slim profit margins 0:03:07.040 --> 0:03:09.440 that come from cutting those prices, and among them. One 0:03:09.480 --> 0:03:12.919 of the most pessimistic takes was from Bank of America, 0:03:13.000 --> 0:03:16.160 which lowered its price target to about ten dollars. That's 0:03:16.280 --> 0:03:20.560 massive considering the company I poed around the seventies um 0:03:20.639 --> 0:03:23.640 and they said, you know, we don't know if the 0:03:23.760 --> 0:03:26.760 growth outlook is here anymore, considering you're having to lower 0:03:26.840 --> 0:03:29.839 prices to get those consumers back. But there is one 0:03:29.919 --> 0:03:32.800 bright spot, which is uh, if there's anything to bring 0:03:32.800 --> 0:03:35.400 back some investor faith, it's what is it going to 0:03:35.440 --> 0:03:38.640 take to get some of those costs down even further 0:03:38.720 --> 0:03:42.280 and put more earnings back into investors pockets. So the 0:03:42.320 --> 0:03:45.120 company mentioned they were willing to look at additional cost cuts. 0:03:45.200 --> 0:03:46.920 Investors are waiting to see what those are going to 0:03:46.960 --> 0:03:50.720 be interesting. I'm gonna play Devil's Avoca and let's look 0:03:50.760 --> 0:03:53.200 at the silver linings a bit more. His a company 0:03:53.200 --> 0:03:55.680 that's saying we had the highest school to revenue in 0:03:55.720 --> 0:03:57.640 the history. There's a company is trying to say they 0:03:57.680 --> 0:04:01.640 had twenty point four million riders overall active riders. That's 0:04:01.880 --> 0:04:04.320 a new record. People are coming back and doing rides, 0:04:04.320 --> 0:04:07.920 sharing more often. Oh what about some of the narrative 0:04:07.960 --> 0:04:10.800 around the fact that we're getting more driver supply. Ultimately, 0:04:11.120 --> 0:04:13.480 are they able in any way to fight back to 0:04:13.640 --> 0:04:18.159 such a remarkable market move. You think that that's a 0:04:18.200 --> 0:04:20.760 good thing that drivers are coming back to the plaqueform. 0:04:20.839 --> 0:04:23.720 The problem last year was that there weren't enough and 0:04:23.920 --> 0:04:27.080 that meant higher prices. But it's an interesting dynamic because 0:04:27.080 --> 0:04:32.200 those higher prices helped Lift revenue and profit for both companies. 0:04:32.520 --> 0:04:36.440 But the disadvantage that Lift has here is that it's 0:04:36.480 --> 0:04:38.840 solely relying on a ride shur business. It doesn't have 0:04:38.920 --> 0:04:41.479 delivery the way Uber does. And so when you think 0:04:41.480 --> 0:04:45.240 about some of the supply and writer demand dynamics coming 0:04:45.240 --> 0:04:48.760 into play again and seeing less of those higher fares 0:04:48.839 --> 0:04:51.240 get into the revenue line, they have to find another 0:04:51.279 --> 0:04:55.679 way to grow. Jackie, I always appreciate Caroline silver Lying. 0:04:55.720 --> 0:04:58.919 I appreciate her every day playing devil's advocate. Let me 0:04:58.960 --> 0:05:01.320 bring us crashing back to reality and bring up this chart, 0:05:01.320 --> 0:05:03.640 and let's talk about market share, because you and I 0:05:03.680 --> 0:05:06.680 look really closely at the reality of this market share situation, 0:05:07.200 --> 0:05:09.799 and is it fair that Lift is becoming an even 0:05:09.800 --> 0:05:15.080 more distant second place to Uber. It's looking that way, 0:05:15.279 --> 0:05:18.080 and you know, when we think about where the two 0:05:18.080 --> 0:05:21.960 companies were at the beginning of the pandemic. Uber really 0:05:21.960 --> 0:05:24.919 hadn't grown out its food delivery business the way it 0:05:24.960 --> 0:05:27.760 hasn't just the last year. So I think the future 0:05:27.800 --> 0:05:31.440 for Lift is looking a little bit bleak. It's looking 0:05:31.480 --> 0:05:33.880 at its membership product to kind of tap some more 0:05:33.960 --> 0:05:37.159 customers get that retention up um, but so far that 0:05:37.240 --> 0:05:40.039 market share just keeps ticking down. And so we'll have 0:05:40.080 --> 0:05:42.960 to see what other tricks it has in his pockets, 0:05:42.960 --> 0:05:45.359 because investors are are waiting to see some more of 0:05:45.360 --> 0:05:49.640 those active writer's return. Bloombo's Jackie Davila was very busy 0:05:49.680 --> 0:05:53.040 week for you, very big contrast between Uber and Lift 0:05:53.080 --> 0:05:55.560 in their earnings prints and let's turn from right sharing 0:05:55.839 --> 0:05:58.839 two e vs. Tesla has hired a new legal chief 0:05:58.880 --> 0:06:01.320 after years of turn over. In a post on LinkedIn, 0:06:01.760 --> 0:06:05.560 Brandon Erhardt revealed he's assumed the role of Tesla's general 0:06:05.600 --> 0:06:09.159 counsel and corporate secretary after departing from Dish. The move 0:06:09.200 --> 0:06:12.400 comes after Musk tweeted last year that the company was 0:06:12.480 --> 0:06:16.560 quote building a hard core litigation department where we directly 0:06:16.600 --> 0:06:20.560 initiate and execute lawsuits and Caroline, speaking of Tesla in 0:06:20.560 --> 0:06:23.720 our weekly Twitter spaces earlier, we had our special guest 0:06:23.760 --> 0:06:27.360 speaker who had some choice words for Elon Musks. Take listen. 0:06:28.720 --> 0:06:33.240 I think it's crucially important to be able to take criticism, 0:06:33.279 --> 0:06:35.760 and this is something that over the years I realized 0:06:35.800 --> 0:06:39.960 with Elon. You know he's very thin skin and so 0:06:40.080 --> 0:06:42.640 thin skinned is Elon Musk that Ross gerber told you 0:06:42.720 --> 0:06:45.200 and I that he is going to make an activist 0:06:45.279 --> 0:06:49.560 play for Tesla's board. I think activism is the thing 0:06:49.600 --> 0:06:51.479 to be watching, isn't it. We're about to talk about 0:06:51.480 --> 0:06:53.839 it when it comes to Spotify as well. But what's 0:06:53.880 --> 0:06:56.280 so interesting with Ross GERBERO is he, in many ways 0:06:56.279 --> 0:06:59.320 have been saying that I've been out there talking about 0:06:59.360 --> 0:07:02.280 Tesla because the company itself won't talk about itself because 0:07:02.279 --> 0:07:04.000 they don't have a marketing play. They don't really go 0:07:04.040 --> 0:07:06.480 out there to the main mainstream media as they call it. 0:07:06.640 --> 0:07:08.240 He wants to change that. He wants to have changed 0:07:08.240 --> 0:07:10.040 from within. He wants to try and get a board seat. 0:07:10.520 --> 0:07:13.000 Fascinating what the reaction will be because ultimately he's a 0:07:13.000 --> 0:07:15.720 Tesla ball. It's not as though he's wanting completely rip 0:07:15.800 --> 0:07:18.280 up the script here. Yeah, I had to crunch the data. 0:07:18.320 --> 0:07:21.200 He has four dred and forty thousand shares or so 0:07:21.600 --> 0:07:24.400 at Gerber Kawasaki. That's zero point zero one percent of 0:07:24.760 --> 0:07:27.280 the float, right, so tiny player. But he told us 0:07:27.280 --> 0:07:29.960 he has the support and pledge of the single biggest 0:07:30.000 --> 0:07:33.080 individual shareholder, and he dropped some names on the institutional 0:07:33.120 --> 0:07:35.800 side as well, So if he gets momentum, let's see. 0:07:35.800 --> 0:07:38.480 But there was a lot of criticism and skepticism on 0:07:38.560 --> 0:07:41.559 Twitter at least when that news came out. So great 0:07:41.600 --> 0:07:44.040 to have these guests joining us on Twitter spaces. Come 0:07:44.120 --> 0:07:47.240 join us next Friday. Meanwhile, oh, let's turn to a 0:07:47.280 --> 0:07:50.160 story that we've been following all week, and wil Kracken 0:07:50.200 --> 0:07:53.040 has settled that SEC and will pay thirty million dollars 0:07:53.040 --> 0:07:56.000 amid allegations that broke the agency's rules with its crypto 0:07:56.040 --> 0:07:59.520 assets taking products. Now earlier, Bloomberg caught up with the 0:07:59.600 --> 0:08:05.520 SEC itself the chat again. Just take a listen. The 0:08:05.680 --> 0:08:10.200 significance is there's a business model in crypto whereby these 0:08:10.440 --> 0:08:15.640 um i'll call them storefronts. There their intermediaries. They asked 0:08:15.640 --> 0:08:18.520 the public and they solicit the public for their funds 0:08:18.600 --> 0:08:20.720 their crypto, and they said we'll give you a return, 0:08:21.440 --> 0:08:23.720 and they might call it lending in this case, it 0:08:23.800 --> 0:08:26.200 was called staking as a service and we'll give you 0:08:26.240 --> 0:08:31.160 four eight percent or even twenty one percent returns. And 0:08:31.720 --> 0:08:35.160 there in lies the issue. They were doing this without 0:08:35.200 --> 0:08:40.199 the proper disclosure, and the investing public gets to decide 0:08:40.240 --> 0:08:43.560 what risks they want to take. And these key questions 0:08:43.679 --> 0:08:47.040 was Cracked in or others that do this? Were they 0:08:47.080 --> 0:08:50.520 taking those tokens and doing what they're saying on their website? 0:08:50.960 --> 0:08:57.920 Are they lending them trading against um running other business models? Uh? 0:08:58.160 --> 0:09:02.240 And so the disclosure is critical for the investing public. 0:09:02.520 --> 0:09:05.360 So what my understanding is now, Cracking can no longer 0:09:05.440 --> 0:09:08.920 do this domestically in the United States for US citizens 0:09:09.040 --> 0:09:12.240 unless I guess they register as a security. Does that 0:09:12.400 --> 0:09:14.560 break the business model? Do you understand it? Does that 0:09:14.640 --> 0:09:16.360 mean they can't be in that business? Or can they 0:09:16.400 --> 0:09:18.040 just come back and say, oh, can ell a register 0:09:18.080 --> 0:09:21.040 will make the disclosures you want, it's it's I'll make 0:09:21.080 --> 0:09:27.559 it more generic. These storefronts, these crypto exchanges, crypto lending platforms, 0:09:27.600 --> 0:09:32.040 crypto staking as the service, they need to come into 0:09:32.080 --> 0:09:36.240 compliance and they are generally non compliant right now. The 0:09:36.280 --> 0:09:40.800 investing public is not only at risk by the speculative 0:09:40.880 --> 0:09:43.520 nature of crypto, but their at risk of ending up 0:09:43.559 --> 0:09:46.120 in line at a bankruptcy court because a lot of 0:09:46.160 --> 0:09:50.960 these platforms are doing things they're not disclosing. So to 0:09:51.040 --> 0:09:57.079 answer your question, yes, firms can come into compliance time 0:09:57.080 --> 0:10:02.479 tested roles, register they're off for rings and propperily disclosed 0:10:02.520 --> 0:10:05.320 the risk and what they're doing with your fines behind 0:10:05.400 --> 0:10:10.880 the scenes, and that would be a compliant field. In 0:10:10.880 --> 0:10:14.520 this case, crack and chose they didn't want to after 0:10:14.679 --> 0:10:19.040 this in the US and we settled sec J Gargans 0:10:19.520 --> 0:10:22.679 earlier with our own David Weston. Meanwhile, well, let's talk 0:10:22.679 --> 0:10:25.559 about President Joe Biden. He's ordering the Pentagon to shoot 0:10:25.600 --> 0:10:28.559 down we understood an object spotted at forty thou feet 0:10:28.600 --> 0:10:31.600 over Alaska. Less than a week of course, after fighter 0:10:31.679 --> 0:10:35.360 jets targeted an alleged Chinese surveillance balloon that across the 0:10:35.400 --> 0:10:38.959 US and provoked a national uproar, the US has also 0:10:39.200 --> 0:10:44.280 sanctioned six firms linked to Chinese aerospace programs, including airships 0:10:44.320 --> 0:10:56.720 and balloons. Like, any technology definitely has its limitation, So 0:10:57.160 --> 0:11:01.319 we actually like anything that you implement, you know, its limitations. 0:11:02.720 --> 0:11:06.559 Navan CEO Aerial Cohen. Yesterday, they're saying look, they know 0:11:06.720 --> 0:11:09.640 that the AI that that company is implemented in their business, 0:11:10.320 --> 0:11:12.880 it isn't perfect, and that they still need to rely 0:11:12.960 --> 0:11:15.199 on real people from time to time. And let's talk 0:11:15.240 --> 0:11:17.640 a little bit more about imperfection. Let's talk about the 0:11:17.720 --> 0:11:20.920 rush into artificial intelligence and indeed the risks there if 0:11:21.120 --> 0:11:24.679 whether it's ethical, whether it's ultimately security wise too pleased 0:11:24.679 --> 0:11:27.679 to welcome to the show. Patcondo, founder CEO of search 0:11:27.720 --> 0:11:33.120 engine and information evaluation provider Seeker, and first and foremost, 0:11:33.200 --> 0:11:38.320 your company basically uses artificial intelligence itself to analyze articles 0:11:38.360 --> 0:11:42.400 out there and provide well an analysis of how misleading, 0:11:42.400 --> 0:11:45.000 how factually correct they are. Just talk to us about 0:11:45.160 --> 0:11:48.839 chat gybt or other generative AI models and chatbots. How 0:11:48.920 --> 0:11:55.160 much could they feed dissemination disinformation? So they're going to 0:11:55.200 --> 0:11:59.000 create an explosion of content, which is the which is 0:11:59.040 --> 0:12:03.160 the objective here is by having it widely distributed and 0:12:03.240 --> 0:12:06.920 present in every application that we use. The whole idea 0:12:07.000 --> 0:12:09.839 is to create as much content as possible, and then 0:12:09.840 --> 0:12:13.120 of course they've got the compute resources behind that in 0:12:13.160 --> 0:12:16.400 their cloud to service that content. So it becomes almost 0:12:16.400 --> 0:12:20.040 a perfect engine. The more content, the more, the more usage, 0:12:20.280 --> 0:12:25.040 the more income is generated. So it's no surprise that 0:12:25.120 --> 0:12:28.520 they've introduced it at this time as their earnings begin 0:12:28.600 --> 0:12:31.320 to you know, flag a bit. This is yet a 0:12:31.320 --> 0:12:37.080 new way to to drive the earnings process. To take 0:12:37.120 --> 0:12:40.079 the other side, like, companies are also deeply excited by 0:12:40.160 --> 0:12:43.760 the productivity these sorts of innovations can bring. How artificial 0:12:43.760 --> 0:12:48.640 intelligence generative AI can really help fuel for the growth 0:12:48.640 --> 0:12:51.120 not just for their own companies, but for us, all 0:12:51.240 --> 0:12:54.520 for for economies, for people, for companies, for productivity. But 0:12:54.920 --> 0:12:56.880 talk to us therefore about what they could put in 0:12:56.920 --> 0:12:59.760 place to make sure that these movements are safe. We 0:12:59.800 --> 0:13:02.840 know open AI uses machines and humans to monitor content. 0:13:02.960 --> 0:13:06.880 What could they do pack well, you know, without transparency, 0:13:06.920 --> 0:13:09.720 there's no trust. And what we've seen today is there's 0:13:09.720 --> 0:13:12.160 a lack of transparency on the web and that's been 0:13:12.200 --> 0:13:14.880 growing over the last you know, four or five years. 0:13:14.880 --> 0:13:18.120 And so now we have something like a generative AI 0:13:18.240 --> 0:13:21.840 which is going to produce you know, even orders of 0:13:21.920 --> 0:13:25.160 magnitude content. So what needs to be put in place 0:13:25.400 --> 0:13:28.160 is what's been put in place over time, which our 0:13:28.280 --> 0:13:31.439 rating systems and a rating system can help gave a 0:13:31.600 --> 0:13:35.959 quality incredibility of the content that's being created, and with 0:13:36.040 --> 0:13:38.439 that you get the trust, and with the trust, you'll 0:13:38.480 --> 0:13:41.280 get use and you'll be able to yet again generate 0:13:41.480 --> 0:13:44.319 kind of another evolution in the use of this kind 0:13:44.360 --> 0:13:49.840 of capability. Right this week, UH seemed to sum up 0:13:49.920 --> 0:13:53.480 this conversation. Right, you had the risk with Alphabet on 0:13:53.520 --> 0:13:55.880 the on the one hand, and the sort of euphoria 0:13:55.960 --> 0:13:59.000 with Microsoft on the other. And what it took was 0:13:59.320 --> 0:14:04.000 a demo video from Google which demonstrated its barred AI 0:14:04.040 --> 0:14:07.319 giving an inaccurate reading, and the stocks had its worst 0:14:07.360 --> 0:14:11.200 week since November. This moment in time now, in your opinion, 0:14:11.640 --> 0:14:14.640 which was the bigger moment for artficial intelligence? What came 0:14:14.679 --> 0:14:17.520 out of Microsoft or what we see on the screen 0:14:17.600 --> 0:14:23.080 right now, which is the market reaction to Google's inaccuracy? 0:14:23.120 --> 0:14:29.080 It's problem. Well, I think everybody that that is a 0:14:29.320 --> 0:14:33.360 you know, users digital products online know that trust is 0:14:33.360 --> 0:14:36.840 an issue. And I think both companies have proven that 0:14:36.960 --> 0:14:40.840 by pushing something to market without having trust behind it 0:14:40.960 --> 0:14:44.400 or transparency is going to create more confusion and more 0:14:44.400 --> 0:14:47.480 concerned than it is benefit. Now, over time that can 0:14:47.480 --> 0:14:51.360 be ameliorated, but now they've got to actually defend something 0:14:51.720 --> 0:14:55.160 that had they set it out with the transparency and 0:14:55.560 --> 0:14:58.720 a measurement scheme on quality. They may not have been 0:14:58.760 --> 0:15:06.840 in this particular situation. Does open aies technology make Microsoft's 0:15:06.880 --> 0:15:13.320 thing more competitive in the search market, I would say 0:15:15.200 --> 0:15:19.920 it will at least maintain their position um Google. On 0:15:19.960 --> 0:15:22.440 the other hand, Google both have taken a different approach. 0:15:22.880 --> 0:15:27.760 Microsoft has approached it by introducing a conversational platform, but 0:15:27.960 --> 0:15:32.280 Google is actually approaching it by producing next generation of 0:15:32.440 --> 0:15:37.200 a search platform. And the difference here is the size 0:15:37.200 --> 0:15:39.680 of the data that's used, the source of the data, 0:15:39.720 --> 0:15:42.400 and the depth. And until we know both, it's very 0:15:42.440 --> 0:15:46.880 hard to tell. Let's talk about where else some sort 0:15:46.920 --> 0:15:51.320 of rails of the road could come in, and many 0:15:51.360 --> 0:15:55.320 would argue that's government's role. Department Commerce is released version 0:15:55.400 --> 0:15:58.160 one point of AI Risk Management Framework. We also know 0:15:58.280 --> 0:16:01.080 that the White House is released end of last year. 0:16:01.120 --> 0:16:03.120 I believe it was a framework for an AI Bill 0:16:03.120 --> 0:16:06.760 of rights, which some companies are pushing back on. Is 0:16:06.800 --> 0:16:09.920 there enough coming from an administration perspective here to have 0:16:10.080 --> 0:16:14.400 oversight to ensure that AI is built appropriately. I think 0:16:14.400 --> 0:16:19.840 in most democracies people are not interested in over regulation 0:16:19.920 --> 0:16:22.400 by the government. I think the source is going to 0:16:22.440 --> 0:16:25.680 be private companies, and I think giving those private companies 0:16:25.760 --> 0:16:30.320 visibility to their solutions is really what has to happen. 0:16:30.560 --> 0:16:33.280 I don't think it should come from government. Seek a 0:16:33.320 --> 0:16:37.760 founder and CEO Pat Condo. Thank you. Let's talk about 0:16:37.840 --> 0:16:40.480 artificial intelligence, some of the euphoria around it and people 0:16:40.480 --> 0:16:42.480 who want to get in on the action. Sound Ventures. 0:16:42.520 --> 0:16:45.680 It's the LA based firm from actor Ashton Kushcher. He's 0:16:45.840 --> 0:16:49.320 discussing raising a fund dedicated to AI investments. It's all 0:16:49.360 --> 0:16:51.720 according to a source. It may target around two on 0:16:51.800 --> 0:16:54.400 a million dollars for the vehicle, though the terms haven't 0:16:54.480 --> 0:16:57.320 yet been finalized and can still change. Other firms raising 0:16:57.400 --> 0:17:00.640 or planning to raise capital dedicated to artificial and intelligence 0:17:00.640 --> 0:17:05.080 include Radical Ventures, Air Street Capital, and Conviction Partners. So 0:17:05.280 --> 0:17:11.400 the ED coming up. For some, it's a dream come 0:17:11.520 --> 0:17:15.679 true being able to immerse yourself Caroline in the world 0:17:15.680 --> 0:17:18.760 of Harry Potter with a new game out today, but 0:17:18.920 --> 0:17:22.320 there's some controversy around it too. Will unpack it all next. 0:17:23.040 --> 0:17:42.879 This is Bloomberg. Harry Potter fans, a who lot of them, 0:17:42.920 --> 0:17:45.359 and many of long wish to inhabit, or at least 0:17:45.440 --> 0:17:48.840 visit Hogwarts Castle. Now it's possible with a new video 0:17:48.840 --> 0:17:53.000 game Hogwarts Legacy, which offers the most convincing recreation yet, 0:17:53.240 --> 0:17:57.200 but the culture wars surrounding the game arraging two. Let's 0:17:57.200 --> 0:18:01.399 bring in Jason Schreyer for more on this and just 0:18:01.440 --> 0:18:05.439 talk to us first and foremost about the cultural side 0:18:05.440 --> 0:18:08.440 of it. J k Rowling has by many even widely 0:18:08.520 --> 0:18:12.879 perceived to make transphobic comments dating back to eighteen. It's 0:18:12.960 --> 0:18:18.000 left many quandering whether they buy the game or not. Right, Yeah, 0:18:18.000 --> 0:18:20.520 this game has been controversial from the start. It was 0:18:20.520 --> 0:18:23.480 actually announced just a few months after J. K Rowland 0:18:23.520 --> 0:18:26.720 became open about her views on transgender people, and as 0:18:26.720 --> 0:18:29.600 a result, people started from the get go talking about 0:18:29.640 --> 0:18:32.760 Boycott's talking about not playing the game. How if you 0:18:32.840 --> 0:18:35.960 play the game or buy the game, you're supporting somebody 0:18:36.000 --> 0:18:38.639 whose views are seen by a lot of people to 0:18:38.720 --> 0:18:43.560 be transphobic. Um, somebody who has spoken out against legislation 0:18:43.600 --> 0:18:45.560 in Scotland that would make it easier for people to 0:18:45.640 --> 0:18:48.600 change their genders on their birth certificates, and a whole 0:18:48.640 --> 0:18:52.720 bunch of other stuff. So yes, i'mlike unlike the books 0:18:52.760 --> 0:18:55.480 of old the Harry Potter books, which I think came 0:18:55.520 --> 0:18:58.760 out and we're just blockbuster launches and and fans are 0:18:58.760 --> 0:19:01.200 lining up at midnight. This comes with a little bit 0:19:01.240 --> 0:19:05.639 more controversy. Well, look, this video game is seizing a 0:19:05.680 --> 0:19:08.320 big moment. You know, everyone's talking about it. You point 0:19:08.359 --> 0:19:10.880 out in the Business of video Games shout out game 0:19:10.920 --> 0:19:14.479 on newsletter from you, which I love reading that. Whatever 0:19:14.480 --> 0:19:17.760 you think about it, it's well reviewed. It's got people 0:19:17.840 --> 0:19:22.720 looking at the game itself. Yeah. What's interesting is in 0:19:22.760 --> 0:19:25.760 the past, um, the Harry Potter games were usually these 0:19:25.800 --> 0:19:28.880 movie tie in games that were rushed out, kind of 0:19:29.240 --> 0:19:32.680 um slap dash games that were put together to just 0:19:32.880 --> 0:19:35.080 make the release of the film, and they follow the 0:19:35.119 --> 0:19:38.440 same story as each of the films. This is completely original. 0:19:38.480 --> 0:19:41.800 It's set a hundred years before the books even took place. 0:19:42.240 --> 0:19:45.200 It's this high end game unlike any other Harry Potter 0:19:45.280 --> 0:19:47.160 game we've seen, and that is one of the reasons 0:19:47.240 --> 0:19:50.040 it's getting such high reviews. It's it's a game unlike 0:19:50.560 --> 0:19:52.400 it's a game we haven't seen before. We haven't seen 0:19:52.440 --> 0:19:58.160 a recreation of Hogwarts Castle. This detailed before and very 0:19:58.160 --> 0:20:01.960 inclusive details within some of that game as well, which 0:20:02.280 --> 0:20:04.760 in your Great Reporter you sort of say, almost as 0:20:04.800 --> 0:20:07.720 if they're really trying to combat to a significant amount 0:20:07.840 --> 0:20:11.560 any cultural that could envelop them. To your point, Jason, 0:20:11.600 --> 0:20:14.520 like when they are interweaving this sort of inclusion and 0:20:14.560 --> 0:20:16.720 they are making hospitable for many a young person to 0:20:16.720 --> 0:20:19.760 come and play. When it's a game that's good, is 0:20:19.800 --> 0:20:21.359 it really good? Is it going to attract people no 0:20:21.400 --> 0:20:23.320 matter what? Because it feels like the sales have been 0:20:23.359 --> 0:20:26.840 pretty grate. Yeah. I mean sales are great first and 0:20:26.840 --> 0:20:29.520 foremost because of Harry Potter. There are some games that 0:20:29.520 --> 0:20:32.440 are critically claimed but don't sell the kind of the 0:20:32.720 --> 0:20:35.800 critical mass that this is reaching. Um that said, yes 0:20:35.800 --> 0:20:38.800 to your point about inclusion, it's really interesting, especially in 0:20:38.800 --> 0:20:41.280 the way gave j. K. Rowling's views. And I won't 0:20:41.320 --> 0:20:43.160 get into everything because it would take us so many 0:20:43.160 --> 0:20:46.280 hours to unpack all of that criticism that's been held 0:20:46.280 --> 0:20:49.399 about the Harry Potter series in general and minorities and 0:20:49.560 --> 0:20:53.120 race and anti Semiti tropes and all that other stuff. 0:20:53.160 --> 0:20:56.440 But this game feels like it's trying to be extremely welcoming. 0:20:56.720 --> 0:20:59.120 The character creator. For example, when you start a new 0:20:59.200 --> 0:21:01.679 character in the game, when you that's the who you 0:21:01.720 --> 0:21:04.560 play as in the game, um, you can create one 0:21:04.600 --> 0:21:07.919 that has a voice and a body tape that is 0:21:08.040 --> 0:21:11.880 completely independent from their dormitory choice of male and female. 0:21:11.960 --> 0:21:14.880 So you can create a pretty trans friendly character, which 0:21:14.920 --> 0:21:17.680 is really a unique thing and something that is very 0:21:17.720 --> 0:21:20.280 refreshing and I think would be welcome by a lot 0:21:20.320 --> 0:21:22.359 of people if not for all the baggage that the 0:21:22.440 --> 0:21:27.200 series author has has come with Bloomberg's Jason Stria, thank 0:21:27.240 --> 0:21:29.680 you so much. If you don't do subcribe, subscribe to 0:21:29.720 --> 0:21:32.560 the game on newsletter that Jason and his team put out. 0:21:41.440 --> 0:21:43.760 Welcome actively Bog Technology. I'm Carlin Hide in New York 0:21:43.880 --> 0:21:48.679 and I oh i medst in San Francisco. It's a 0:21:48.680 --> 0:21:51.160 Friday vibe, and it's a Friday vibe because it's about 0:21:51.160 --> 0:21:53.800 to be a big Sunday vibe to the super Bowl 0:21:54.119 --> 0:21:58.240 and it's going viral. Fanjul expecting record bets on this 0:21:58.359 --> 0:22:02.120 platform on Sunday. CEO Amy Host spoke to Bloomberg Markets earlier. 0:22:02.160 --> 0:22:08.160 Take listen. We're projecting seventeen million bets on the platform, 0:22:08.200 --> 0:22:09.840 which is more than double what we would have seen 0:22:09.960 --> 0:22:13.040 last year. There's three new states online this year, but 0:22:13.080 --> 0:22:15.680 it's also it's our biggest acquisition moment of the year. 0:22:15.680 --> 0:22:18.560 We'll probably bring half a million new users onto the 0:22:18.560 --> 0:22:21.080 platform leading up to and on the day of, and 0:22:21.119 --> 0:22:22.920 it's a great opportunity they get to you know, you 0:22:23.040 --> 0:22:25.840 bet on hundreds of different player props. So it's, um, 0:22:25.880 --> 0:22:29.520 it's going to be an exciting day for fans. Maybe 0:22:29.880 --> 0:22:31.560 good morning, get this guy. Is it going to be 0:22:31.600 --> 0:22:33.240 profitable for you? Is it going to be a good 0:22:33.320 --> 0:22:35.600 day for you? How does this snack up in terms 0:22:35.600 --> 0:22:39.159 of the bottom line? Oh, listen, it's going to be 0:22:39.200 --> 0:22:41.480 a big day, and you know, it all depends on 0:22:41.520 --> 0:22:43.320 the outcome of the game. I think the most important 0:22:43.359 --> 0:22:46.439 thing is consumers bet based on the narrative that they 0:22:46.480 --> 0:22:48.080 want to see, and I think you know what you're 0:22:48.080 --> 0:22:50.240 seeing is right now. The money is definitely flowing to 0:22:50.280 --> 0:22:54.199 the Philadelphia Eagles. So apologies of your Chiefs fan, um, 0:22:54.280 --> 0:22:57.000 but what's what's most exciting is the player props. Right 0:22:58.200 --> 0:23:01.720 of our bets will contain these one player prop. We 0:23:01.840 --> 0:23:04.960 think thirty of our bets will be the same game parlay, 0:23:05.080 --> 0:23:07.280 and so that's exciting, right. You can you can bet 0:23:07.320 --> 0:23:10.719