WEBVTT - Apple Fall Season and Meta's Election Mistakes 0:00:02.320 --> 0:00:05.680 From the heart of where innovation, money and power Collie 0:00:06.440 --> 0:00:10.959 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.039 --> 0:00:27.560 Emily jay erimily changing San Francisco in this hy is 0:00:27.560 --> 0:00:29.880 Bloomberg Technology coming up in the next hour. It is 0:00:29.880 --> 0:00:32.920 a date. Apple's next big product unveiling is set for 0:00:32.920 --> 0:00:36.919 September seven, according to Bloomberg sources. Details on the new 0:00:37.000 --> 0:00:41.559 max iPads and of course iPhones we will see, plus 0:00:41.560 --> 0:00:44.360 some meta rolls out It's old playbook for a new 0:00:44.520 --> 0:00:47.400 round of midterm election. We'll talk about whether it's enough 0:00:47.720 --> 0:00:52.400 to fight the latest trends in miss and disinformation. And 0:00:52.560 --> 0:00:55.319 arm just posted record revenue and ship mints, but it's 0:00:55.360 --> 0:00:58.240 chip industry peers are seeing a slowdown ahead. I'll ask 0:00:58.320 --> 0:01:02.960 CEO Days if he airs that sentiment. Meantime, a number 0:01:03.000 --> 0:01:06.160 of high profile venture capitalists and entrepreneurs are meeting in 0:01:06.240 --> 0:01:09.280 Los Angeles for l A Tech Week. It includes names 0:01:09.280 --> 0:01:12.839 like Mark andreson Ari Emmanuel. For a better sense of 0:01:13.080 --> 0:01:15.080 the sentiment there, I want to bring in Zillo co 0:01:15.319 --> 0:01:19.240 founder and seventy five and Sunny general partner Spencer Raskoff, 0:01:19.280 --> 0:01:22.800 who's also a speaker at l A Tech Week this week. Spencer. 0:01:22.840 --> 0:01:24.840 If we were to take the temperature of the markets, 0:01:24.880 --> 0:01:28.839 it is anything but seventy and Sonny, what's the temperature 0:01:28.880 --> 0:01:32.600 in l A? The market temper hot? Yeah, it's hot. 0:01:32.600 --> 0:01:35.520 We're gonna We're not gonna let a week, a couple 0:01:35.520 --> 0:01:36.920 of days, or a couple of months in the stock 0:01:36.959 --> 0:01:40.399 market damper the enthusiasm for tech here in Los Angeles. 0:01:40.480 --> 0:01:44.640 It's a really exciting time. This conference this week. You know, 0:01:44.760 --> 0:01:47.520 it was kind of an unconference because we just sort 0:01:47.520 --> 0:01:49.560 of announced it to the community just a couple of 0:01:49.560 --> 0:01:52.000 months ago, and now we have over three events and 0:01:52.120 --> 0:01:55.200 sixteen thousand people, many of whom have come from other 0:01:55.200 --> 0:01:58.559 areas including the Bay Area, exploring l A Tech filled 0:01:58.560 --> 0:02:02.320 with enthusiasm and excitement, and it's it's a boom time here. 0:02:02.320 --> 0:02:05.400 You know, tech hubs have been changing. Obviously we've been 0:02:05.400 --> 0:02:08.560 talking about the movement away from Silicon Valley, but now 0:02:08.600 --> 0:02:12.840 with more distributed work, more remote work. What is the 0:02:12.880 --> 0:02:17.160 power of the l A tech hub? In particular? L 0:02:17.240 --> 0:02:21.400 A is the intersection of media, entertainment, pop culture, commerce. 0:02:21.919 --> 0:02:25.239 It's where tastemakers live. So you know, the ten thousand, 0:02:25.360 --> 0:02:29.840 twenty people that decide what's cool for the rest of 0:02:29.880 --> 0:02:31.760 the country, the rest of the world, they live in 0:02:31.919 --> 0:02:34.800 l A. This is where culture happens. And now you 0:02:34.840 --> 0:02:38.440 have this convergence of media through streaming and studios which 0:02:38.480 --> 0:02:42.680 really are tech companies increasingly so the the you know, media, 0:02:42.760 --> 0:02:46.320 entertainment and pop culture is very strong in tech community here. 0:02:46.360 --> 0:02:49.760 But it should be remembered that l A also has 0:02:49.800 --> 0:02:54.040 a fifty year manufacturing history and aerospace in heavy equipment 0:02:54.040 --> 0:02:58.320 manufacturing and technology. Incredible universities and it is it has 0:02:58.360 --> 0:03:01.079 now cemented itself as the number two at tech hub 0:03:01.120 --> 0:03:03.880 behind the Bay Area. Our goal, my goal, the l 0:03:03.880 --> 0:03:06.360 A Tech communities goal, Emily, is to get you someday 0:03:06.400 --> 0:03:08.359 to move your show from the Bay Area to here 0:03:08.360 --> 0:03:10.399 in l A and have the intro of your show 0:03:10.440 --> 0:03:13.000 talk about how l A is the tech center of 0:03:13.040 --> 0:03:16.680 the country and hopefully the world. It's a wonderful idea Spencer, 0:03:16.800 --> 0:03:18.680 and I can't say we haven't thought about it. So 0:03:18.880 --> 0:03:21.440 you will be my first phone call when that happens. 0:03:21.560 --> 0:03:25.040 But you know, look, it's it's it's dreary. There's a 0:03:25.080 --> 0:03:27.240 lot of red on the screen. Um when you look 0:03:27.280 --> 0:03:30.360 at the markets almost every day, how is this impacting 0:03:30.880 --> 0:03:35.000 your strategy? Yeah? So um, Look, we're in the midst 0:03:35.040 --> 0:03:37.920 of a venture winter, there's no doubt. So venture firms 0:03:37.920 --> 0:03:41.120 have pulled back. Late stage growth investors, the hedge funds, 0:03:41.120 --> 0:03:43.920 the crossover investors that we're leading, all of these high 0:03:43.920 --> 0:03:47.680 price series D, series E, series F rounds. They've moved 0:03:47.720 --> 0:03:50.400 out of privates. They're either hiding under their desk or 0:03:50.400 --> 0:03:53.040 they're focused on the public markets right now, So that 0:03:53.200 --> 0:03:55.960 chill has moved upstream to the earlier stage companies, and 0:03:56.000 --> 0:04:00.200 companies are adjusting. Companies are doing inside rounds, they're doing 0:04:00.200 --> 0:04:03.120 flat rounds, they're cutting back on marketing expense, they're cutting 0:04:03.160 --> 0:04:06.880 head count, and they're adjusting for this new winter. And 0:04:06.920 --> 0:04:09.320 you know, I'm old enough now to have been through 0:04:09.360 --> 0:04:13.760 several cycles two thousand eight, two thousand one. Great companies 0:04:13.800 --> 0:04:16.480 can get created during these down cycles. They just have 0:04:16.560 --> 0:04:20.440 to make sure that they survive. And customer behavior changes, 0:04:20.760 --> 0:04:25.120 corporation behavior changes during this period of change and during recessions. 0:04:25.120 --> 0:04:26.839 So a lot of great companies, a lot of great 0:04:26.880 --> 0:04:29.799 things come out of them. But you're absolutely seeing companies 0:04:29.839 --> 0:04:33.720 adjust and venture capital investors adjust. No. I know, Andrews 0:04:33.720 --> 0:04:37.400 and Harwitz has a big presence down there, and they 0:04:37.520 --> 0:04:41.120 are the target of a lot of chatter in Silicon 0:04:41.160 --> 0:04:44.640 Valley right now, Mark Andrees in writing the firm's biggest 0:04:44.720 --> 0:04:49.719 check ever to Adam Newman, the founder of we Work. UM, 0:04:49.800 --> 0:04:53.240 some people pretty unhappy about this, and we spoke to 0:04:54.040 --> 0:04:56.400 a young founder, Alison Buyers, yesterday, and I want you 0:04:56.400 --> 0:04:59.600 to take a listen to what she had to say. 0:05:00.080 --> 0:05:02.960 You have to feel that rage when you are part 0:05:03.000 --> 0:05:07.680 of that community that is just historically blocked from accessing 0:05:07.680 --> 0:05:13.000 this funding. What is a major prestigious investment house doing 0:05:13.440 --> 0:05:18.920 backing fraud a second time. There is no excuse for that, 0:05:19.600 --> 0:05:22.919 and there has to be the ability to separate what 0:05:23.080 --> 0:05:26.320 is a good business idea that has the potential to 0:05:26.360 --> 0:05:30.480 be a good investment from the person who is behind 0:05:30.680 --> 0:05:35.880 that idea and executing on it. Spencer, I'm just going 0:05:35.960 --> 0:05:39.320 to leave it open ended. What's your take. Well, there's 0:05:39.320 --> 0:05:42.320 a lot of commentary and discussion this week at l 0:05:42.320 --> 0:05:45.800 A Tech Week about about this exact topic. UM, you know, 0:05:46.160 --> 0:05:48.160 my take is I was very surprised by the size 0:05:48.160 --> 0:05:49.920 of the check. I mean, three or fifty million dollars 0:05:49.960 --> 0:05:54.560 for for a seed round. That's that's ginormous by any standards. UM, 0:05:54.600 --> 0:05:57.719 I don't know Adam Newman. I suspect that the team 0:05:57.720 --> 0:06:00.880 and juries and Horowitz had a hard in the eye 0:06:01.080 --> 0:06:04.760 with him and said, have you been humbled? Are you 0:06:04.839 --> 0:06:08.279 now coachable? Did you learn from the mistakes that you made? 0:06:09.360 --> 0:06:12.640 And they looked past those mistakes and said, here is 0:06:12.680 --> 0:06:16.280 somebody who has revolutionized a huge category commercial real estate, 0:06:16.640 --> 0:06:20.440 and who has created a very large, successful, publicly traded company, 0:06:20.480 --> 0:06:23.320 which was a roller coaster. It went up, it went down, 0:06:23.360 --> 0:06:24.719 but you know what, it's still a five to ten 0:06:24.760 --> 0:06:27.320 billion dollar public company today. And I suspect that he 0:06:27.360 --> 0:06:29.960 convinced Andrews and Horowitz that he learned from his excesses 0:06:30.000 --> 0:06:33.480 and from his mistakes. Now, the commentary from from that 0:06:33.960 --> 0:06:36.799 that founder is absolutely right. It speaks to the fact 0:06:36.839 --> 0:06:40.159 that there is still a lack of diversity, equity inclusion. 0:06:40.160 --> 0:06:42.120 I mean, Emily, you literally wrote the book on this, right, 0:06:42.560 --> 0:06:44.920 um and and this is still a serious issue in 0:06:45.040 --> 0:06:49.000 tech and um uh. And so she's right to to 0:06:49.240 --> 0:06:52.080 express outrage from her perspective about it. But I think 0:06:52.080 --> 0:06:54.360 that's when Andrews and Harwitz is thinking when they decided 0:06:54.400 --> 0:06:58.400 to back Adam Newman again, which is that he'll he'll 0:06:58.440 --> 0:07:00.520 have learned from his mistakes and uh, you know, and 0:07:00.640 --> 0:07:02.160 and be a different type of founder and a different 0:07:02.200 --> 0:07:05.440 type of leader this second time. You know, it does 0:07:05.520 --> 0:07:08.560 speak to a pattern as you say, that we have 0:07:08.640 --> 0:07:10.600 seen in Silicon Valley time and again. I'm just so, 0:07:10.680 --> 0:07:13.440 I'm curious what you think of his idea as someone 0:07:13.480 --> 0:07:16.480 who also founded a company in real estate. Is his 0:07:16.600 --> 0:07:20.760 idea flow, this idea to revolutionize residential real estate apartments? 0:07:21.480 --> 0:07:25.160 Does it? Think it's a pretty visionary. Yeah, I think 0:07:25.160 --> 0:07:27.600 it's interesting. I mean for for viewers that that don't know. 0:07:27.880 --> 0:07:30.880 He's trying to create a branded multifamily products. So I think, 0:07:30.920 --> 0:07:35.160 like what W Hotels is to hospitality, this company flow 0:07:35.200 --> 0:07:38.600 could be two apartments. And it is a good insight 0:07:38.680 --> 0:07:41.520 that most apartment buildings are unbranded. They're just named the 0:07:41.560 --> 0:07:44.560 address and it is kind of a you know, an 0:07:44.600 --> 0:07:47.080 uninteresting experience. You just take the elevator up to your 0:07:47.080 --> 0:07:49.040 little box and that's that. So he's trying to create, 0:07:49.280 --> 0:07:52.400 you know, we work for apartment living. I think that's 0:07:52.440 --> 0:07:54.960 a good idea. What I don't know is if the 0:07:55.000 --> 0:08:00.400 margins of managing multipamily apartment building can support the um, 0:08:00.760 --> 0:08:04.320 the the you know, the accouterments that he needs to 0:08:04.320 --> 0:08:06.840 build to create that community. I was talking to an 0:08:06.880 --> 0:08:09.680 investor last night who is much more experienced in in 0:08:09.840 --> 0:08:12.840 multifamily real estate investing than I am, and this person 0:08:12.920 --> 0:08:15.559 was very barish on the idea, said it will never work. 0:08:15.800 --> 0:08:18.720 There's not enough margin in managing multifamily apartment buildings to 0:08:19.000 --> 0:08:20.480 you know, to create what he's trying to build, both 0:08:20.480 --> 0:08:25.200 the brand and also also other advantages to the tenants 0:08:25.560 --> 0:08:28.280 and so so this investor was was very negative on it. 0:08:28.520 --> 0:08:30.600 I haven't you know, I'm not close enough to to 0:08:30.680 --> 0:08:32.800 know to have a personal opinion about it, but as 0:08:32.800 --> 0:08:35.160 a user, as as a you know, as a as 0:08:35.200 --> 0:08:37.920 a tenant, as a as a homeowner, I would agree 0:08:37.960 --> 0:08:39.880 that there is there does seem to be there there. 0:08:39.880 --> 0:08:44.040 I think it is solving a problem that that renters have. Well, 0:08:44.080 --> 0:08:45.520 you and I could go on and on about this 0:08:45.559 --> 0:08:48.280 for hours, but well we can do that offline. Spencer, Um, 0:08:48.920 --> 0:08:51.679 I do I do want to get your take on 0:08:51.679 --> 0:08:55.160 on the market dynamics, the housing market dynamics. Do you 0:08:55.240 --> 0:08:58.959 think that the downturn that we're going through will delay 0:08:59.040 --> 0:09:02.040 innovation in the housing industry? You know, you know, the hope, 0:09:02.040 --> 0:09:03.520 which is what you were trying to do with Zulo 0:09:03.640 --> 0:09:09.360 Zelo is make transactions easier for homebuyers, and will all 0:09:09.400 --> 0:09:14.600 of this tunnel put that off um potentially, because what's 0:09:14.640 --> 0:09:17.360 happening is the down turner and housing is scaring venture 0:09:17.360 --> 0:09:20.480 capital investors from putting money to work in the category. So, 0:09:20.679 --> 0:09:22.960 you know, seventy and Sunny, My venture firm has about 0:09:22.960 --> 0:09:25.280 a hundred investments, about a quarter of which are in 0:09:25.400 --> 0:09:27.840 prop tech, and so I'm a very active proc prop 0:09:27.880 --> 0:09:30.680 tech investor, and I can tell you that vcs have 0:09:30.840 --> 0:09:33.400 are really put off and scared because the public comps 0:09:33.400 --> 0:09:36.040 have come down so much. I mean, Zilo is at 0:09:36.080 --> 0:09:38.480 a seven eight nine year low and and all the 0:09:38.480 --> 0:09:40.200 other public comps have come down so much. And that 0:09:40.240 --> 0:09:45.960 ways on investormental, investor mindset and and sentiments. So so yes, 0:09:46.160 --> 0:09:49.920 it could dampen innovation because there will be fewer startups 0:09:49.920 --> 0:09:52.080 in prop tech getting funded. Now, the good news is 0:09:52.400 --> 0:09:55.000 if you are a prop tech like Picasso one of 0:09:55.040 --> 0:09:57.719 my other companies, that is funded, that has raised a 0:09:57.760 --> 0:09:59.839 lot of venture capital, that already has a product in 0:09:59.880 --> 0:10:02.600 the market, this is a great time to gobble up 0:10:02.600 --> 0:10:05.560 market share because competitors probably won't be able to get funded. 0:10:05.679 --> 0:10:08.560 So you know, again, like I've seen in other cycles 0:10:08.559 --> 0:10:11.880 in two thousand eight, for example, where Zillo actually benefited 0:10:11.920 --> 0:10:14.520 from the two thousand eight recession because they were already 0:10:14.559 --> 0:10:17.800 funded and on the racetrack and others couldn't get funding. 0:10:18.200 --> 0:10:22.200 Great companies can be built during this down cycle. Alright, 0:10:22.280 --> 0:10:23.959 Spencer ras Coff, I'm gonna let you get back to 0:10:24.000 --> 0:10:26.640 your very hot seventy five and sunny weather over there. Um, 0:10:26.880 --> 0:10:39.480 thank you as always for stopping by. Apple is kicking 0:10:39.480 --> 0:10:43.319 off a busy fall products season September seven, with new iPhones, 0:10:43.400 --> 0:10:47.240 new Max low and high end iPads, and three models 0:10:47.280 --> 0:10:50.200 of the Apple Watch. The event will only be streamed online. 0:10:50.240 --> 0:10:52.400 Let's get more on this with Bloombergs Marker when who 0:10:52.440 --> 0:10:57.920 covers all things Apple for us? So what do we know? So? 0:10:58.160 --> 0:11:01.440 I know that the event is currently being planned for Wednesday, 0:11:01.480 --> 0:11:04.160 September seven, a little rare for Apple. They usually like 0:11:04.240 --> 0:11:06.320 to hold their events on a Tuesday, but as you know, 0:11:06.760 --> 0:11:09.200 Labor days on that Monday, so they're you know, blocking 0:11:09.240 --> 0:11:11.560 off that Tuesday as a travel day. Now what does 0:11:11.600 --> 0:11:13.480 that mean to me? That means that not only is 0:11:13.480 --> 0:11:15.480 it going to be streamed online, but they'll have an 0:11:15.480 --> 0:11:18.160 in person portion probably for press and others for a 0:11:18.200 --> 0:11:20.040 little bit of hands on. We're probably about two weeks 0:11:20.040 --> 0:11:23.400 away from this event being announced. In all likelihood, the 0:11:23.520 --> 0:11:25.800 center of the event will be the iPhone fourteen line 0:11:26.080 --> 0:11:28.640 along with the Apple Watch Series eight line. So looking 0:11:28.679 --> 0:11:31.120 forward to both of those products and seeing what's in store. 0:11:31.880 --> 0:11:36.400 When will these products be available? So you'll see Apple 0:11:36.760 --> 0:11:40.160 do an initial launch wave on September sixte that's a Friday, 0:11:40.320 --> 0:11:43.560 nine days after the announcement, and that is probably going 0:11:43.600 --> 0:11:46.400 to be for the iPhone four teen line. You'll see 0:11:46.440 --> 0:11:49.560 four models, right, You'll see entry level versions of the 0:11:49.559 --> 0:11:52.520 fourteen as well as iPhone fourteen Pro models. Now, the 0:11:52.520 --> 0:11:54.840 big thing this year is that the mini is going away, 0:11:54.880 --> 0:11:57.360 so there won't be an iPhone fourteen Mini. Instead, there'll 0:11:57.360 --> 0:11:59.760 be an iPhone fourteen Max, which that means there's going 0:11:59.800 --> 0:12:01.920 to be a six point seven inch version of the 0:12:02.000 --> 0:12:04.520 nonprofone for the first time, to be a little bit 0:12:04.520 --> 0:12:07.640 pricier than normal for the nonprofones, but I think it 0:12:07.679 --> 0:12:11.360 will be especially popular because of that enhanced screen size. Now, 0:12:11.400 --> 0:12:14.960 obviously we've been talking a lot about inflation, consumers under pressure, 0:12:15.559 --> 0:12:18.600 you know, difficult market dynamics. Is now the right time 0:12:18.640 --> 0:12:23.600 for Apple to be updating its flagship product. Yeah, absolutely right. 0:12:23.679 --> 0:12:27.440 Apple updates its iPhone every September October fall. They've done 0:12:27.480 --> 0:12:30.880 that since shifting their release schedule back in two thousand 0:12:30.840 --> 0:12:33.000 and eleven. There's no way Apple is not going to 0:12:33.120 --> 0:12:35.760 update their devices. The people who were able to buy 0:12:35.760 --> 0:12:38.160 them are going to buy them as usual. You'll see 0:12:38.200 --> 0:12:40.200 a lot of new trade in deals. I think I've 0:12:40.240 --> 0:12:42.960 mentioned this on the show last last year. So I 0:12:43.000 --> 0:12:46.480 had the iPhone twelve from I was actually able to 0:12:46.520 --> 0:12:49.600 get the iPhone thirteen not only for free, but I 0:12:49.640 --> 0:12:51.959 think I got about seventy five dollars you know, cash 0:12:51.960 --> 0:12:54.520 in my pocket extra for trading in. Right. So if 0:12:54.559 --> 0:12:57.719 they have aggressive trade in deals like they did last year, 0:12:58.320 --> 0:13:01.680 I think they're gonna shake out pretty pretty fine. You 0:13:01.760 --> 0:13:04.840 also had a story out today on Netflix some more 0:13:04.920 --> 0:13:08.400 details about their AD supported plan. What will be included, 0:13:08.440 --> 0:13:11.880 what won't be included, what do we know? Yeah, so 0:13:12.080 --> 0:13:15.040 investors and consumers of Netflix have been pretty interested in 0:13:15.080 --> 0:13:18.680 this AD supported UH tier for those unfamiliar. Right now, 0:13:18.720 --> 0:13:21.760 Netflix can cost upwards of twenty a month for their 0:13:21.800 --> 0:13:25.280 top tier four K plan with multiple screens. Right, they 0:13:25.320 --> 0:13:27.040 want a cheaper option and the way to go cheaper 0:13:27.200 --> 0:13:29.680 is to add ads, right, and so it's gonna cost 0:13:29.760 --> 0:13:32.120 less and they're gonna offset that with advertisements. And what 0:13:32.160 --> 0:13:35.000 we learned today based on code findings inside of the 0:13:35.040 --> 0:13:37.800 Netflix iPhone app is not only are they underway on 0:13:37.880 --> 0:13:40.840 revamping their app to support this ad supported tier, but 0:13:40.880 --> 0:13:43.160 we know that they're not going to support downloads for 0:13:43.160 --> 0:13:46.920 offline viewing. Super popular feature. I've used it before. If 0:13:46.960 --> 0:13:49.040 you're hopping on a plane, you want to download some 0:13:49.120 --> 0:13:52.640 Netflix movies and shows to watch on your cross country flight, 0:13:52.880 --> 0:13:56.480 you want that feature. This won't have it. Okay, good 0:13:56.480 --> 0:13:59.200 to know. Thanks Mark for your great reporting, as all 0:13:59.240 --> 0:14:12.480 the timbers, Mark German. While with midterm elections approaching, Meta 0:14:12.600 --> 0:14:15.880 is rolling out its plans to tackle misinformation. After years 0:14:15.920 --> 0:14:19.160 of revising and updating its election strategy, the social media 0:14:19.240 --> 0:14:22.720 giant is sticking with some familiar tactics, the same tactics 0:14:22.760 --> 0:14:25.880 we saw in the general election, which was marred by 0:14:26.000 --> 0:14:30.480 conspiracies and culminated in the January six insurrection at the 0:14:30.560 --> 0:14:34.600 US Capital. Bloomberg's Alex Brinka cover social media for US, 0:14:34.600 --> 0:14:37.640 So Alex talk to us about what Meta is planning 0:14:37.640 --> 0:14:42.000 to do here and what if anything is different from Yeah. 0:14:42.040 --> 0:14:44.680 So they're very much focused, like you said, on on misinformation. 0:14:44.760 --> 0:14:48.200 So they will remove posts and ads that have to 0:14:48.240 --> 0:14:51.760 do with things like wrong logistics on voting, things that 0:14:51.960 --> 0:14:55.960 incite violence based on the outcome of an election. UM. 0:14:56.000 --> 0:14:59.320 And also UM, you know, making sure that in the 0:14:59.400 --> 0:15:02.640 week p fire to UM the close of the polls, 0:15:02.960 --> 0:15:06.680 they will not actually add any new political advertisements or 0:15:06.720 --> 0:15:10.560 allow any changes political advertisement means the reason, UM, that 0:15:10.600 --> 0:15:12.960 will give a sufficient time for folks to kind of 0:15:13.000 --> 0:15:16.720 process and potentially fact check if there's any misinformation on 0:15:16.720 --> 0:15:20.600 the platform. So for them, bottom line is misinformation logistics 0:15:20.800 --> 0:15:25.680 is the focus. The question is is it gonna work? 0:15:26.520 --> 0:15:30.800 Are they Are they any more prepared than they were 0:15:31.160 --> 0:15:36.600 in tactics that will surely have evolved. So we have 0:15:36.680 --> 0:15:40.080 the opportunity to chat to their top policy boss, Nick Clegg, 0:15:40.160 --> 0:15:43.160 and he says, Look, we've spent the last you know, 0:15:43.240 --> 0:15:46.520 six years kind of evolving the taxes we have. We 0:15:46.600 --> 0:15:51.080 feel good about what we had in We've made some iterations, UM, 0:15:51.160 --> 0:15:53.880 but you know, he insists that the company will not 0:15:53.960 --> 0:15:57.720 be complacent. He also said that they're sure they'll see 0:15:57.760 --> 0:15:59.800 some new things that they need to combat this year. 0:15:59.840 --> 0:16:02.760 So will it work well if the goal is to 0:16:03.160 --> 0:16:06.680 remove misinformation from the platform and kind of stay ahead 0:16:06.720 --> 0:16:09.240 of things, I expect it will still kind of be 0:16:09.320 --> 0:16:12.680 this game of lackable where you see bad actors um 0:16:12.720 --> 0:16:15.280 putting out information it needs to be taken down. They 0:16:15.360 --> 0:16:17.480 might change the language it needs to be taken down, 0:16:17.640 --> 0:16:20.760 which would be you know, as the tune is for 0:16:20.800 --> 0:16:23.480 this year, um, pretty consistent with what we saw in 0:16:24.760 --> 0:16:27.600 And how does what Facebook is planning to do meta, 0:16:28.040 --> 0:16:33.360 I should say compared to for example, TikTok, So Meta 0:16:33.600 --> 0:16:36.960 is kind of unique compared to TikTok and say Twitter 0:16:37.080 --> 0:16:41.160 and that they do actually allow political advertisements. TikTok and 0:16:41.200 --> 0:16:44.760 Twitter both don't allow political ads on the platform, so 0:16:45.440 --> 0:16:48.360 Meta also has this unique stance that they won't fact 0:16:48.480 --> 0:16:51.120 check ads. That's been a bit of a controversial stance 0:16:51.480 --> 0:16:54.240 um for them. So uh, that is kind of the 0:16:54.360 --> 0:16:57.200 main difference there when you look at something like TikTok. 0:16:57.200 --> 0:17:01.560 TikTok will also vet organic posts um since they don't 0:17:01.560 --> 0:17:05.680 allow those ads and basically suppress things that are unverified 0:17:05.720 --> 0:17:09.480 from the platform. So fact checkers will allow good information 0:17:09.600 --> 0:17:12.040 that they information they deemed good to go through on 0:17:12.080 --> 0:17:14.960 TikTok to the for you page. Bad information will be 0:17:15.000 --> 0:17:18.480 taken down, anything that's not verified will be suppressed from 0:17:18.520 --> 0:17:21.719 that all important for you feed, that main kind of 0:17:21.720 --> 0:17:24.960 feed where people discover things. So, um, you know that 0:17:25.119 --> 0:17:29.240 is probably the biggest difference here is that level of suppression. 0:17:29.440 --> 0:17:32.879 Let's say that TikTok has to make sure that information 0:17:32.920 --> 0:17:35.560 that's not fully verified or they can't say one way 0:17:35.600 --> 0:17:38.840 or another doesn't necessarily garner as big of an audience 0:17:39.040 --> 0:17:42.119 as as a piece of content normally could. Well, and 0:17:42.119 --> 0:17:44.960 it's hard enough in English, how are they thinking about 0:17:45.040 --> 0:17:49.600 handling these issues in other languages? Say Russian? Yeah, so 0:17:49.840 --> 0:17:52.680 um men I didn't talk a lot about Russian language. 0:17:52.920 --> 0:17:55.480 Um this go around. What they did talk about was 0:17:55.520 --> 0:17:58.399 adding additional Spanish language fact checkers. They have about ten 0:17:58.440 --> 0:18:01.400 fact checkers they're working with. Half of those are Spanish 0:18:01.440 --> 0:18:04.879 because what they saw in the general election was a 0:18:04.960 --> 0:18:08.919 lot of news and commentary was in Spanish and so 0:18:08.960 --> 0:18:11.920 they felt they needed to add it add some external 0:18:11.960 --> 0:18:14.240 partners who kind of focus on that language as well. 0:18:14.280 --> 0:18:17.639 So no mention of Russian, Emily um for the for 0:18:17.680 --> 0:18:19.879 the U S audience, but they are at least adding 0:18:20.080 --> 0:18:24.280 that additional language there for this election, Okay, Alex Sparenka 0:18:24.400 --> 0:18:36.920 as always appreciate your stopping by, thank you. Due to 0:18:37.000 --> 0:18:40.960 the macroeconomic uncertainties as well as due to high levels 0:18:41.000 --> 0:18:45.760 of inventories that customers have built across various end market segments. 0:18:45.800 --> 0:18:49.240 For US, those in mentories are being adjusted down and 0:18:49.280 --> 0:18:52.600 that is what is resulting in the dues demand for US. 0:18:54.840 --> 0:18:57.720 That was Micron Ceo San jam Rocha earlier this month. 0:18:57.840 --> 0:19:00.800 The slowdown in semiconductor demand was tough to find, though. 0:19:00.960 --> 0:19:04.520 In Arms latest earnings report, the chipmaker reported record first 0:19:04.600 --> 0:19:07.760 quarter revenue and shipment, says its diversification into cars and 0:19:07.840 --> 0:19:11.359 infrastructure starts to pay off. Here to discuss Arms, Ceo 0:19:11.880 --> 0:19:14.000 Renee has So we've been hearing from a lot of 0:19:14.080 --> 0:19:17.560 chipmakers that demand is going to slow down. Their numbers 0:19:17.560 --> 0:19:20.720 haven't been good. How how is it that ARM bucked 0:19:20.720 --> 0:19:23.560 the trend? Well? Q one was good for us. We 0:19:23.560 --> 0:19:25.919 were very fortunate. We had record revenue for US in 0:19:26.000 --> 0:19:28.880 Q one. We had record royalties for US over four 0:19:28.920 --> 0:19:31.200 hundred million dollars and royalties We had never done anything 0:19:31.200 --> 0:19:34.119 close to that before. So it's quite good, uh. I 0:19:34.160 --> 0:19:36.520 think for US, Emily largely It's been the result of 0:19:36.560 --> 0:19:39.760 the diversification of our business. As you mentioned, ARM was 0:19:39.880 --> 0:19:42.439 largely known for smartphones a number of years ago, but 0:19:42.520 --> 0:19:45.400 now you know, we're in the cloud, we're in networking equipment, 0:19:45.400 --> 0:19:49.240 we're in industrial, we're in IoT, automotive. All those markets 0:19:49.240 --> 0:19:51.679 have been strong. So the result is a really good 0:19:51.760 --> 0:19:54.800 quarter for us. Are you seeing any signs of a slowdown? 0:19:55.520 --> 0:20:00.159 We're seeing some, but largely speaking, areas like automotive, is 0:20:00.200 --> 0:20:03.960 like the cloud, areas like networking still really really strong. 0:20:04.480 --> 0:20:07.560 We've seen some slow down and smartphones some in PCs, 0:20:07.880 --> 0:20:10.240 We personally have not been impacted by it that much 0:20:10.280 --> 0:20:12.640 because we're seeing more and more ARM compute in each 0:20:12.680 --> 0:20:15.359 of these devices. So as a result, our results have 0:20:15.440 --> 0:20:19.080 been really really strong. So what is this show investors 0:20:19.119 --> 0:20:21.720 about the company? As you know you're getting ready to 0:20:21.720 --> 0:20:24.400 go public. Not much I can say about that process, 0:20:24.480 --> 0:20:26.720 but the results I think speak for itself in terms 0:20:26.720 --> 0:20:29.600 of how well we're doing. So there's been a number 0:20:29.600 --> 0:20:33.000 of announcements about ARM getting into the data center. AWS 0:20:33.080 --> 0:20:36.119 is obviously leading the way. What kind of progress are 0:20:36.119 --> 0:20:37.879 you making there and what kind of market share do 0:20:37.920 --> 0:20:42.320 you think ARM could potentially get to. We're growing. I 0:20:42.320 --> 0:20:44.560 wouldn't want to speculate the how large your market share 0:20:44.600 --> 0:20:46.560 can get. But you know, some of the fundamentals that 0:20:46.600 --> 0:20:49.800 we bring are really important, and that's really around efficiency. 0:20:50.160 --> 0:20:51.760 You know, when you build a new data center, you 0:20:51.800 --> 0:20:53.560 only have so much power you can put the data 0:20:53.600 --> 0:20:56.120 center and you have only so much square footage. So 0:20:56.280 --> 0:20:59.800 compute performance matters, but compute efficiency really matters. It's an 0:20:59.800 --> 0:21:02.120 air that's really ARMS DNA. It's an area that we're 0:21:02.119 --> 0:21:04.080 really really good at and we're seeing that really in 0:21:04.160 --> 0:21:06.639 terms of benefits of what a WS is doing and 0:21:06.680 --> 0:21:10.200 other partners. You know, we had announcements from Microsoft, Google, 0:21:10.560 --> 0:21:13.360 all the major hyper scalers now have made announcements on ARM. 0:21:13.640 --> 0:21:16.480 You've also been working a hard hard to grow PC 0:21:16.640 --> 0:21:20.480 market share. Obviously Apple has helped there. What about Windows? 0:21:20.520 --> 0:21:22.720 When are we going to see a big Windows breakthrough? 0:21:23.000 --> 0:21:24.840 I think you're seeing more and more of it. The 0:21:24.920 --> 0:21:27.120 laptops to day they are based on ARM are terrific 0:21:27.160 --> 0:21:30.479 in terms of battery life, they're terrific in terms of performance. Uh, 0:21:30.600 --> 0:21:33.280 they don't need fans. I think you'll see the Windows 0:21:33.320 --> 0:21:35.400 ecosystem moving to ARM in a big way pretty soon. 0:21:36.119 --> 0:21:39.800 So UM chip stocks the market has not been kind 0:21:39.920 --> 0:21:43.440 to them this year. You know, what's your sort of outlook, 0:21:43.600 --> 0:21:48.000 you know what will in your view, differentiate ARM from 0:21:48.000 --> 0:21:50.680 the pack. Yeah, I can predict what the stock market's 0:21:50.720 --> 0:21:52.359 gonna do. Obviously, if I was, i'd probably one of 0:21:52.359 --> 0:21:54.680 your earlier shows for this are different with a different job. 0:21:55.400 --> 0:21:57.520 We have two pieces to our business. We have a 0:21:57.600 --> 0:22:00.320 royalty business, which is an indicator of units that ship, 0:22:00.680 --> 0:22:02.880 but we also have a licensing business, which is really 0:22:02.920 --> 0:22:06.000 about design winds. The canary in the coal mine relative 0:22:06.040 --> 0:22:09.480 to new design starts, that's really strong, uh, and in fact, 0:22:09.480 --> 0:22:11.480 it's strong as it's ever been. We're seeing a lot 0:22:11.520 --> 0:22:14.920