Speaker 1: From the heart of where innovation, money and power Collie
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily jay erimily changing San Francisco in this hy is
Speaker 1: Bloomberg Technology coming up in the next hour. It is
Speaker 1: a date. Apple's next big product unveiling is set for
Speaker 1: September seven, according to Bloomberg sources. Details on the new
Speaker 1: max iPads and of course iPhones we will see, plus
Speaker 1: some meta rolls out It's old playbook for a new
Speaker 1: round of midterm election. We'll talk about whether it's enough
Speaker 1: to fight the latest trends in miss and disinformation. And
Speaker 1: arm just posted record revenue and ship mints, but it's
Speaker 1: chip industry peers are seeing a slowdown ahead. I'll ask
Speaker 1: CEO Days if he airs that sentiment. Meantime, a number
Speaker 1: of high profile venture capitalists and entrepreneurs are meeting in
Speaker 1: Los Angeles for l A Tech Week. It includes names
Speaker 1: like Mark andreson Ari Emmanuel. For a better sense of
Speaker 1: the sentiment there, I want to bring in Zillo co
Speaker 1: founder and seventy five and Sunny general partner Spencer Raskoff,
Speaker 1: who's also a speaker at l A Tech Week this week. Spencer.
Speaker 1: If we were to take the temperature of the markets,
Speaker 1: it is anything but seventy and Sonny, what's the temperature
Speaker 1: in l A? The market temper hot? Yeah, it's hot.
Speaker 1: We're gonna We're not gonna let a week, a couple
Speaker 1: of days, or a couple of months in the stock
Speaker 1: market damper the enthusiasm for tech here in Los Angeles.
Speaker 1: It's a really exciting time. This conference this week. You know,
Speaker 1: it was kind of an unconference because we just sort
Speaker 1: of announced it to the community just a couple of
Speaker 1: months ago, and now we have over three events and
Speaker 1: sixteen thousand people, many of whom have come from other
Speaker 1: areas including the Bay Area, exploring l A Tech filled
Speaker 1: with enthusiasm and excitement, and it's it's a boom time here.
Speaker 1: You know, tech hubs have been changing. Obviously we've been
Speaker 1: talking about the movement away from Silicon Valley, but now
Speaker 1: with more distributed work, more remote work. What is the
Speaker 1: power of the l A tech hub? In particular? L
Speaker 1: A is the intersection of media, entertainment, pop culture, commerce.
Speaker 1: It's where tastemakers live. So you know, the ten thousand,
Speaker 1: twenty people that decide what's cool for the rest of
Speaker 1: the country, the rest of the world, they live in
Speaker 1: l A. This is where culture happens. And now you
Speaker 1: have this convergence of media through streaming and studios which
Speaker 1: really are tech companies increasingly so the the you know, media,
Speaker 1: entertainment and pop culture is very strong in tech community here.
Speaker 1: But it should be remembered that l A also has
Speaker 1: a fifty year manufacturing history and aerospace in heavy equipment
Speaker 1: manufacturing and technology. Incredible universities and it is it has
Speaker 1: now cemented itself as the number two at tech hub
Speaker 1: behind the Bay Area. Our goal, my goal, the l
Speaker 1: A Tech communities goal, Emily, is to get you someday
Speaker 1: to move your show from the Bay Area to here
Speaker 1: in l A and have the intro of your show
Speaker 1: talk about how l A is the tech center of
Speaker 1: the country and hopefully the world. It's a wonderful idea Spencer,
Speaker 1: and I can't say we haven't thought about it. So
Speaker 1: you will be my first phone call when that happens.
Speaker 1: But you know, look, it's it's it's dreary. There's a
Speaker 1: lot of red on the screen. Um when you look
Speaker 1: at the markets almost every day, how is this impacting
Speaker 1: your strategy? Yeah? So um, Look, we're in the midst
Speaker 1: of a venture winter, there's no doubt. So venture firms
Speaker 1: have pulled back. Late stage growth investors, the hedge funds,
Speaker 1: the crossover investors that we're leading, all of these high
Speaker 1: price series D, series E, series F rounds. They've moved
Speaker 1: out of privates. They're either hiding under their desk or
Speaker 1: they're focused on the public markets right now, So that
Speaker 1: chill has moved upstream to the earlier stage companies, and
Speaker 1: companies are adjusting. Companies are doing inside rounds, they're doing
Speaker 1: flat rounds, they're cutting back on marketing expense, they're cutting
Speaker 1: head count, and they're adjusting for this new winter. And
Speaker 1: you know, I'm old enough now to have been through
Speaker 1: several cycles two thousand eight, two thousand one. Great companies
Speaker 1: can get created during these down cycles. They just have
Speaker 1: to make sure that they survive. And customer behavior changes,
Speaker 1: corporation behavior changes during this period of change and during recessions.
Speaker 1: So a lot of great companies, a lot of great
Speaker 1: things come out of them. But you're absolutely seeing companies
Speaker 1: adjust and venture capital investors adjust. No. I know, Andrews
Speaker 1: and Harwitz has a big presence down there, and they
Speaker 1: are the target of a lot of chatter in Silicon
Speaker 1: Valley right now, Mark Andrees in writing the firm's biggest
Speaker 1: check ever to Adam Newman, the founder of we Work. UM,
Speaker 1: some people pretty unhappy about this, and we spoke to
Speaker 1: a young founder, Alison Buyers, yesterday, and I want you
Speaker 1: to take a listen to what she had to say.
Speaker 1: You have to feel that rage when you are part
Speaker 1: of that community that is just historically blocked from accessing
Speaker 1: this funding. What is a major prestigious investment house doing
Speaker 1: backing fraud a second time. There is no excuse for that,
Speaker 1: and there has to be the ability to separate what
Speaker 1: is a good business idea that has the potential to
Speaker 1: be a good investment from the person who is behind
Speaker 1: that idea and executing on it. Spencer, I'm just going
Speaker 1: to leave it open ended. What's your take. Well, there's
Speaker 1: a lot of commentary and discussion this week at l
Speaker 1: A Tech Week about about this exact topic. UM, you know,
Speaker 1: my take is I was very surprised by the size
Speaker 1: of the check. I mean, three or fifty million dollars
Speaker 1: for for a seed round. That's that's ginormous by any standards. UM,
Speaker 1: I don't know Adam Newman. I suspect that the team
Speaker 1: and juries and Horowitz had a hard in the eye
Speaker 1: with him and said, have you been humbled? Are you
Speaker 1: now coachable? Did you learn from the mistakes that you made?
Speaker 1: And they looked past those mistakes and said, here is
Speaker 1: somebody who has revolutionized a huge category commercial real estate,
Speaker 1: and who has created a very large, successful, publicly traded company,
Speaker 1: which was a roller coaster. It went up, it went down,
Speaker 1: but you know what, it's still a five to ten
Speaker 1: billion dollar public company today. And I suspect that he
Speaker 1: convinced Andrews and Horowitz that he learned from his excesses
Speaker 1: and from his mistakes. Now, the commentary from from that
Speaker 1: that founder is absolutely right. It speaks to the fact
Speaker 1: that there is still a lack of diversity, equity inclusion.
Speaker 1: I mean, Emily, you literally wrote the book on this, right,
Speaker 1: um and and this is still a serious issue in
Speaker 1: tech and um uh. And so she's right to to
Speaker 1: express outrage from her perspective about it. But I think
Speaker 1: that's when Andrews and Harwitz is thinking when they decided
Speaker 1: to back Adam Newman again, which is that he'll he'll
Speaker 1: have learned from his mistakes and uh, you know, and
Speaker 1: and be a different type of founder and a different
Speaker 1: type of leader this second time. You know, it does
Speaker 1: speak to a pattern as you say, that we have
Speaker 1: seen in Silicon Valley time and again. I'm just so,
Speaker 1: I'm curious what you think of his idea as someone
Speaker 1: who also founded a company in real estate. Is his
Speaker 1: idea flow, this idea to revolutionize residential real estate apartments?
Speaker 1: Does it? Think it's a pretty visionary. Yeah, I think
Speaker 1: it's interesting. I mean for for viewers that that don't know.
Speaker 1: He's trying to create a branded multifamily products. So I think,
Speaker 1: like what W Hotels is to hospitality, this company flow
Speaker 1: could be two apartments. And it is a good insight
Speaker 1: that most apartment buildings are unbranded. They're just named the
Speaker 1: address and it is kind of a you know, an
Speaker 1: uninteresting experience. You just take the elevator up to your
Speaker 1: little box and that's that. So he's trying to create,
Speaker 1: you know, we work for apartment living. I think that's
Speaker 1: a good idea. What I don't know is if the
Speaker 1: margins of managing multipamily apartment building can support the um,
Speaker 1: the the you know, the accouterments that he needs to
Speaker 1: build to create that community. I was talking to an
Speaker 1: investor last night who is much more experienced in in
Speaker 1: multifamily real estate investing than I am, and this person
Speaker 1: was very barish on the idea, said it will never work.
Speaker 1: There's not enough margin in managing multifamily apartment buildings to
Speaker 1: you know, to create what he's trying to build, both
Speaker 1: the brand and also also other advantages to the tenants
Speaker 1: and so so this investor was was very negative on it.
Speaker 1: I haven't you know, I'm not close enough to to
Speaker 1: know to have a personal opinion about it, but as
Speaker 1: a user, as as a you know, as a as
Speaker 1: a tenant, as a as a homeowner, I would agree
Speaker 1: that there is there does seem to be there there.
Speaker 1: I think it is solving a problem that that renters have. Well,
Speaker 1: you and I could go on and on about this
Speaker 1: for hours, but well we can do that offline. Spencer, Um,
Speaker 1: I do I do want to get your take on
Speaker 1: on the market dynamics, the housing market dynamics. Do you
Speaker 1: think that the downturn that we're going through will delay
Speaker 1: innovation in the housing industry? You know, you know, the hope,
Speaker 1: which is what you were trying to do with Zulo
Speaker 1: Zelo is make transactions easier for homebuyers, and will all
Speaker 1: of this tunnel put that off um potentially, because what's
Speaker 1: happening is the down turner and housing is scaring venture
Speaker 1: capital investors from putting money to work in the category. So,
Speaker 1: you know, seventy and Sunny, My venture firm has about
Speaker 1: a hundred investments, about a quarter of which are in
Speaker 1: prop tech, and so I'm a very active proc prop
Speaker 1: tech investor, and I can tell you that vcs have
Speaker 1: are really put off and scared because the public comps
Speaker 1: have come down so much. I mean, Zilo is at
Speaker 1: a seven eight nine year low and and all the
Speaker 1: other public comps have come down so much. And that
Speaker 1: ways on investormental, investor mindset and and sentiments. So so yes,
Speaker 1: it could dampen innovation because there will be fewer startups
Speaker 1: in prop tech getting funded. Now, the good news is
Speaker 1: if you are a prop tech like Picasso one of
Speaker 1: my other companies, that is funded, that has raised a
Speaker 1: lot of venture capital, that already has a product in
Speaker 1: the market, this is a great time to gobble up
Speaker 1: market share because competitors probably won't be able to get funded.
Speaker 1: So you know, again, like I've seen in other cycles
Speaker 1: in two thousand eight, for example, where Zillo actually benefited
Speaker 1: from the two thousand eight recession because they were already
Speaker 1: funded and on the racetrack and others couldn't get funding.
Speaker 1: Great companies can be built during this down cycle. Alright,
Speaker 1: Spencer ras Coff, I'm gonna let you get back to
Speaker 1: your very hot seventy five and sunny weather over there. Um,
Speaker 1: thank you as always for stopping by. Apple is kicking
Speaker 1: off a busy fall products season September seven, with new iPhones,
Speaker 1: new Max low and high end iPads, and three models
Speaker 1: of the Apple Watch. The event will only be streamed online.
Speaker 1: Let's get more on this with Bloombergs Marker when who
Speaker 1: covers all things Apple for us? So what do we know? So?
Speaker 1: I know that the event is currently being planned for Wednesday,
Speaker 1: September seven, a little rare for Apple. They usually like
Speaker 1: to hold their events on a Tuesday, but as you know,
Speaker 1: Labor days on that Monday, so they're you know, blocking
Speaker 1: off that Tuesday as a travel day. Now what does
Speaker 1: that mean to me? That means that not only is
Speaker 1: it going to be streamed online, but they'll have an
Speaker 1: in person portion probably for press and others for a
Speaker 1: little bit of hands on. We're probably about two weeks
Speaker 1: away from this event being announced. In all likelihood, the
Speaker 1: center of the event will be the iPhone fourteen line
Speaker 1: along with the Apple Watch Series eight line. So looking
Speaker 1: forward to both of those products and seeing what's in store.
Speaker 1: When will these products be available? So you'll see Apple
Speaker 1: do an initial launch wave on September sixte that's a Friday,
Speaker 1: nine days after the announcement, and that is probably going
Speaker 1: to be for the iPhone four teen line. You'll see
Speaker 1: four models, right, You'll see entry level versions of the
Speaker 1: fourteen as well as iPhone fourteen Pro models. Now, the
Speaker 1: big thing this year is that the mini is going away,
Speaker 1: so there won't be an iPhone fourteen Mini. Instead, there'll
Speaker 1: be an iPhone fourteen Max, which that means there's going
Speaker 1: to be a six point seven inch version of the
Speaker 1: nonprofone for the first time, to be a little bit
Speaker 1: pricier than normal for the nonprofones, but I think it
Speaker 1: will be especially popular because of that enhanced screen size. Now,
Speaker 1: obviously we've been talking a lot about inflation, consumers under pressure,
Speaker 1: you know, difficult market dynamics. Is now the right time
Speaker 1: for Apple to be updating its flagship product. Yeah, absolutely right.
Speaker 1: Apple updates its iPhone every September October fall. They've done
Speaker 1: that since shifting their release schedule back in two thousand
Speaker 1: and eleven. There's no way Apple is not going to
Speaker 1: update their devices. The people who were able to buy
Speaker 1: them are going to buy them as usual. You'll see
Speaker 1: a lot of new trade in deals. I think I've
Speaker 1: mentioned this on the show last last year. So I
Speaker 1: had the iPhone twelve from I was actually able to
Speaker 1: get the iPhone thirteen not only for free, but I
Speaker 1: think I got about seventy five dollars you know, cash
Speaker 1: in my pocket extra for trading in. Right. So if
Speaker 1: they have aggressive trade in deals like they did last year,
Speaker 1: I think they're gonna shake out pretty pretty fine. You
Speaker 1: also had a story out today on Netflix some more
Speaker 1: details about their AD supported plan. What will be included,
Speaker 1: what won't be included, what do we know? Yeah, so
Speaker 1: investors and consumers of Netflix have been pretty interested in
Speaker 1: this AD supported UH tier for those unfamiliar. Right now,
Speaker 1: Netflix can cost upwards of twenty a month for their
Speaker 1: top tier four K plan with multiple screens. Right, they
Speaker 1: want a cheaper option and the way to go cheaper
Speaker 1: is to add ads, right, and so it's gonna cost
Speaker 1: less and they're gonna offset that with advertisements. And what
Speaker 1: we learned today based on code findings inside of the
Speaker 1: Netflix iPhone app is not only are they underway on
Speaker 1: revamping their app to support this ad supported tier, but
Speaker 1: we know that they're not going to support downloads for
Speaker 1: offline viewing. Super popular feature. I've used it before. If
Speaker 1: you're hopping on a plane, you want to download some
Speaker 1: Netflix movies and shows to watch on your cross country flight,
Speaker 1: you want that feature. This won't have it. Okay, good
Speaker 1: to know. Thanks Mark for your great reporting, as all
Speaker 1: the timbers, Mark German. While with midterm elections approaching, Meta
Speaker 1: is rolling out its plans to tackle misinformation. After years
Speaker 1: of revising and updating its election strategy, the social media
Speaker 1: giant is sticking with some familiar tactics, the same tactics
Speaker 1: we saw in the general election, which was marred by
Speaker 1: conspiracies and culminated in the January six insurrection at the
Speaker 1: US Capital. Bloomberg's Alex Brinka cover social media for US,
Speaker 1: So Alex talk to us about what Meta is planning
Speaker 1: to do here and what if anything is different from Yeah.
Speaker 1: So they're very much focused, like you said, on on misinformation.
Speaker 1: So they will remove posts and ads that have to
Speaker 1: do with things like wrong logistics on voting, things that
Speaker 1: incite violence based on the outcome of an election. UM.
Speaker 1: And also UM, you know, making sure that in the
Speaker 1: week p fire to UM the close of the polls,
Speaker 1: they will not actually add any new political advertisements or
Speaker 1: allow any changes political advertisement means the reason, UM, that
Speaker 1: will give a sufficient time for folks to kind of
Speaker 1: process and potentially fact check if there's any misinformation on
Speaker 1: the platform. So for them, bottom line is misinformation logistics
Speaker 1: is the focus. The question is is it gonna work?
Speaker 1: Are they Are they any more prepared than they were
Speaker 1: in tactics that will surely have evolved. So we have
Speaker 1: the opportunity to chat to their top policy boss, Nick Clegg,
Speaker 1: and he says, Look, we've spent the last you know,
Speaker 1: six years kind of evolving the taxes we have. We
Speaker 1: feel good about what we had in We've made some iterations, UM,
Speaker 1: but you know, he insists that the company will not
Speaker 1: be complacent. He also said that they're sure they'll see
Speaker 1: some new things that they need to combat this year.
Speaker 1: So will it work well if the goal is to
Speaker 1: remove misinformation from the platform and kind of stay ahead
Speaker 1: of things, I expect it will still kind of be
Speaker 1: this game of lackable where you see bad actors um
Speaker 1: putting out information it needs to be taken down. They
Speaker 1: might change the language it needs to be taken down,
Speaker 1: which would be you know, as the tune is for
Speaker 1: this year, um, pretty consistent with what we saw in
Speaker 1: And how does what Facebook is planning to do meta,
Speaker 1: I should say compared to for example, TikTok, So Meta
Speaker 1: is kind of unique compared to TikTok and say Twitter
Speaker 1: and that they do actually allow political advertisements. TikTok and
Speaker 1: Twitter both don't allow political ads on the platform, so
Speaker 1: Meta also has this unique stance that they won't fact
Speaker 1: check ads. That's been a bit of a controversial stance
Speaker 1: um for them. So uh, that is kind of the
Speaker 1: main difference there when you look at something like TikTok.
Speaker 1: TikTok will also vet organic posts um since they don't
Speaker 1: allow those ads and basically suppress things that are unverified
Speaker 1: from the platform. So fact checkers will allow good information
Speaker 1: that they information they deemed good to go through on
Speaker 1: TikTok to the for you page. Bad information will be
Speaker 1: taken down, anything that's not verified will be suppressed from
Speaker 1: that all important for you feed, that main kind of
Speaker 1: feed where people discover things. So, um, you know that
Speaker 1: is probably the biggest difference here is that level of suppression.
Speaker 1: Let's say that TikTok has to make sure that information
Speaker 1: that's not fully verified or they can't say one way
Speaker 1: or another doesn't necessarily garner as big of an audience
Speaker 1: as as a piece of content normally could. Well, and
Speaker 1: it's hard enough in English, how are they thinking about
Speaker 1: handling these issues in other languages? Say Russian? Yeah, so
Speaker 1: um men I didn't talk a lot about Russian language.
Speaker 1: Um this go around. What they did talk about was
Speaker 1: adding additional Spanish language fact checkers. They have about ten
Speaker 1: fact checkers they're working with. Half of those are Spanish
Speaker 1: because what they saw in the general election was a
Speaker 1: lot of news and commentary was in Spanish and so
Speaker 1: they felt they needed to add it add some external
Speaker 1: partners who kind of focus on that language as well.
Speaker 1: So no mention of Russian, Emily um for the for
Speaker 1: the U S audience, but they are at least adding
Speaker 1: that additional language there for this election, Okay, Alex Sparenka
Speaker 1: as always appreciate your stopping by, thank you. Due to
Speaker 1: the macroeconomic uncertainties as well as due to high levels
Speaker 1: of inventories that customers have built across various end market segments.
Speaker 1: For US, those in mentories are being adjusted down and
Speaker 1: that is what is resulting in the dues demand for US.
Speaker 1: That was Micron Ceo San jam Rocha earlier this month.
Speaker 1: The slowdown in semiconductor demand was tough to find, though.
Speaker 1: In Arms latest earnings report, the chipmaker reported record first
Speaker 1: quarter revenue and shipment, says its diversification into cars and
Speaker 1: infrastructure starts to pay off. Here to discuss Arms, Ceo
Speaker 1: Renee has So we've been hearing from a lot of
Speaker 1: chipmakers that demand is going to slow down. Their numbers
Speaker 1: haven't been good. How how is it that ARM bucked
Speaker 1: the trend? Well? Q one was good for us. We
Speaker 1: were very fortunate. We had record revenue for US in
Speaker 1: Q one. We had record royalties for US over four
Speaker 1: hundred million dollars and royalties We had never done anything
Speaker 1: close to that before. So it's quite good, uh. I
Speaker 1: think for US, Emily largely It's been the result of
Speaker 1: the diversification of our business. As you mentioned, ARM was
Speaker 1: largely known for smartphones a number of years ago, but
Speaker 1: now you know, we're in the cloud, we're in networking equipment,
Speaker 1: we're in industrial, we're in IoT, automotive. All those markets
Speaker 1: have been strong. So the result is a really good
Speaker 1: quarter for us. Are you seeing any signs of a slowdown?
Speaker 1: We're seeing some, but largely speaking, areas like automotive, is
Speaker 1: like the cloud, areas like networking still really really strong.
Speaker 1: We've seen some slow down and smartphones some in PCs,
Speaker 1: We personally have not been impacted by it that much
Speaker 1: because we're seeing more and more ARM compute in each
Speaker 1: of these devices. So as a result, our results have
Speaker 1: been really really strong. So what is this show investors
Speaker 1: about the company? As you know you're getting ready to
Speaker 1: go public. Not much I can say about that process,
Speaker 1: but the results I think speak for itself in terms
Speaker 1: of how well we're doing. So there's been a number
Speaker 1: of announcements about ARM getting into the data center. AWS
Speaker 1: is obviously leading the way. What kind of progress are
Speaker 1: you making there and what kind of market share do
Speaker 1: you think ARM could potentially get to. We're growing. I
Speaker 1: wouldn't want to speculate the how large your market share
Speaker 1: can get. But you know, some of the fundamentals that
Speaker 1: we bring are really important, and that's really around efficiency.
Speaker 1: You know, when you build a new data center, you
Speaker 1: only have so much power you can put the data
Speaker 1: center and you have only so much square footage. So
Speaker 1: compute performance matters, but compute efficiency really matters. It's an
Speaker 1: air that's really ARMS DNA. It's an area that we're
Speaker 1: really really good at and we're seeing that really in
Speaker 1: terms of benefits of what a WS is doing and
Speaker 1: other partners. You know, we had announcements from Microsoft, Google,
Speaker 1: all the major hyper scalers now have made announcements on ARM.
Speaker 1: You've also been working a hard hard to grow PC
Speaker 1: market share. Obviously Apple has helped there. What about Windows?
Speaker 1: When are we going to see a big Windows breakthrough?
Speaker 1: I think you're seeing more and more of it. The
Speaker 1: laptops to day they are based on ARM are terrific
Speaker 1: in terms of battery life, they're terrific in terms of performance. Uh,
Speaker 1: they don't need fans. I think you'll see the Windows
Speaker 1: ecosystem moving to ARM in a big way pretty soon.
Speaker 1: So UM chip stocks the market has not been kind
Speaker 1: to them this year. You know, what's your sort of outlook,
Speaker 1: you know what will in your view, differentiate ARM from
Speaker 1: the pack. Yeah, I can predict what the stock market's
Speaker 1: gonna do. Obviously, if I was, i'd probably one of
Speaker 1: your earlier shows for this are different with a different job.
Speaker 1: We have two pieces to our business. We have a
Speaker 1: royalty business, which is an indicator of units that ship,
Speaker 1: but we also have a licensing business, which is really
Speaker 1: about design winds. The canary in the coal mine relative
Speaker 1: to new design starts, that's really strong, uh, and in fact,
Speaker 1: it's strong as it's ever been. We're seeing a lot
Speaker 1: of investment in R and D, in automotive, in the cloud,
Speaker 1: in IoT and laptops and smartphones. So I think going
Speaker 1: forward the secular trends are driven a lot of growth.
Speaker 1: We're we're very very bullish on that, and we're saying
Speaker 1: again our licensing activity, which is an indicator really of
Speaker 1: investment in R and D, has never been better. Now.
Speaker 1: I know you can't talk specifically about the I p O,
Speaker 1: but what has the volatility meant for your strategy and
Speaker 1: your plans? I mean, you have to be watching the
Speaker 1: market dynamics and wondering if now is really the right time.
Speaker 1: I mean, many people are saying the window, the I
Speaker 1: p O window is closed right now. Yeah. I can't
Speaker 1: speak about the I p O process, but what I
Speaker 1: can tell you is that, you know, there's been a
Speaker 1: lot of semiconductor downturns in history, obvious we all know
Speaker 1: that what's different about this one is we're not seeing
Speaker 1: people tap the brakes relative to new investment, and we're
Speaker 1: not seeing people tap the brakes on our and d
Speaker 1: for us, the licenses that we do today, they end
Speaker 1: up in products three or four years down the road.
Speaker 1: The royalties that we're seeing today as a result of
Speaker 1: design wins that we did three or four years ago,
Speaker 1: we see continued strong demand for our technology and products.
Speaker 1: Let's talk about China. Continuing tensions in U. S. China relations,
Speaker 1: more restrictions from the U. S side about doing business
Speaker 1: in China. We've seen, you know, with the ARM example,
Speaker 1: just how difficult it is to run a joint venture there.
Speaker 1: How are you navigating that? You know, given the unique
Speaker 1: arms in a very unique geographic um and sort of
Speaker 1: geopolitical position, how do you navigate that without upsetting Washington?
Speaker 1: And Beijing. We're in a unique space. So when the US,
Speaker 1: for example, puts down restrictions around entities or companies that
Speaker 1: can't be shipped to that require licenses, like any other company,
Speaker 1: we have to apply for a license, will adhere to
Speaker 1: the compliance rules. We're a little different than traditional US
Speaker 1: companies because ultimately those rules come down to the nature
Speaker 1: of the u S content, i e. The percentage of
Speaker 1: u S engineers working on the products. The majority of
Speaker 1: arms engineers are not in the United States. The majority
Speaker 1: of them are are in Europe, mostly in the UK,
Speaker 1: so we are generally not as impacted as other companies
Speaker 1: around these areas. But of course when we need to comply,
Speaker 1: we will, and we have to apply for a license,
Speaker 1: we'll do what other companies do. What's your view on
Speaker 1: the supply chain right now and how the COVID restrictions
Speaker 1: in China will continue to impact supply I think it's
Speaker 1: a very hard thing to predict, to be honest with you,
Speaker 1: because the shutdowns are sudden, they don't come with much warning.
Speaker 1: It doesn't take a whole lot for a section of
Speaker 1: the country to shut down, and the next thing you know,
Speaker 1: you can't get a port open. You can't ship product.
Speaker 1: So I think the supply chain perturbations are with us.
Speaker 1: For for a while, the world was very accustomed to
Speaker 1: the old normal. World was flat, We had no pandemic,
Speaker 1: there were no skirmishes or conflicts across borders. We live
Speaker 1: in a different time now, unfortunately, and I think you're
Speaker 1: seeing that manifest itself in terms of all kinds of shortages.
Speaker 1: I think it will exist for a while. So what
Speaker 1: have you changed about the way you do business, the
Speaker 1: way you run the business to navigate that, to get
Speaker 1: a round that, or can you hard for us? We
Speaker 1: don't build products, as you know, We license I P
Speaker 1: so we ship blueprints to companies who build chips. But
Speaker 1: what about your customers? We watch that very closely, right
Speaker 1: We we want to make sure that we can supply
Speaker 1: the products they need at the time they need to
Speaker 1: have them to ship. But ultimately we're kind of behold
Speaker 1: into what the supply chain looks like. Again. What we
Speaker 1: continue to see though, is people doing more and more designs,
Speaker 1: doing more and more design starts, not slowing them down.
Speaker 1: We're not seeing anyone say, look, I'll push a product
Speaker 1: out by six months because I'm sitting on inventory our
Speaker 1: partners don't think that way. It's really about innovating as
Speaker 1: fast as possible because the demand cycle is so so strong. Well,
Speaker 1: there is concerned though that that demand cycle doesn't keep up.
Speaker 1: But you know, demand aside is supply are are we
Speaker 1: still going to continue to see supply issues? And how
Speaker 1: long do those supply issues last? I think we will
Speaker 1: see it for a while, until the world gets to
Speaker 1: a new normal of understanding what the buying patterns are,
Speaker 1: what the forecasting patterns are. You know, let's take system
Speaker 1: on chip for example. You may be able to get
Speaker 1: it enough die from t SMC, but if you can't
Speaker 1: get the substrate that you're going to put the system
Speaker 1: on package, you're going to have a problem. So I
Speaker 1: I personally think it's with us for a while. So
Speaker 1: where is ARM Let's say a year from now, hopefully,
Speaker 1: I mean with you talking about record revenues, record royalties,
Speaker 1: record design wins. I'm hoping that the momentum continues. I'm
Speaker 1: confident that it will and will you be public sure?
Speaker 1: I one more time? Okay, RM CEO d Haska to
Speaker 1: have you back, thank you time now for our crypto report.
Speaker 1: And even though the market might not be as bullish
Speaker 1: as it was last year. Coin fund is announcing the
Speaker 1: launch of a three d million dollar early stage Web
Speaker 1: three venture fund called coin fund Ventures, and it's backed
Speaker 1: by institutional investors, family offices, and crypto native founders. I
Speaker 1: want to bring in David Pacman, managing partner at head
Speaker 1: Venture Investing at coin fund now for more So, David,
Speaker 1: we've been talking about how there's a lot of dry
Speaker 1: powder out there with the market downturn, you know, a
Speaker 1: lot of investors right now having to sit on the sidelines.
Speaker 1: Why launched this now? Well, this is not our first
Speaker 1: bear market in crypto, it's our third. One. Uh coin
Speaker 1: Funds a firm that's been investing in crypto for you know,
Speaker 1: since and we launched our second seed fund in the
Speaker 1: depths of the team bear market. That funds done really well.
Speaker 1: So we have three seed funds and now we're launching
Speaker 1: this venture fund focused on early stage like Series A
Speaker 1: stage venture projects and companies. Um but in our view,
Speaker 1: this is probably the largest economic value creation opportunity we've
Speaker 1: ever seen in tech. Bigger than Web one, bigger than
Speaker 1: Web two. You're rearranging the entire value stack of software.
Speaker 1: We're gonna build software on top of decentralized blockchains. Crypto
Speaker 1: is gonna eat the global financial system, and n f
Speaker 1: T s are going to completely rebuild the way we
Speaker 1: monetize intellectual property. That's a huge opportunity set and so
Speaker 1: independent and of where we are in market cycles, we
Speaker 1: think crypto is the best place to be making tech investments.
Speaker 1: So what's your unique approach, where, where, and how do
Speaker 1: you plan to place your bats differently from all of
Speaker 1: that other dry powder out there. I think first, we
Speaker 1: have seen a retraction in the amount of crypto investors
Speaker 1: out there. There certainly are a group of crypto native
Speaker 1: investors like us who only invest in crypto and block chains,
Speaker 1: UH and all the technology around Web three, but many
Speaker 1: of the traditional venture firms and hedge funds that started
Speaker 1: digging into crypto have pulled back, leaving ample opportunity for
Speaker 1: us to make investments. We invest along the entire waterfront
Speaker 1: of crypto, everything from layer ones and the blockchains themselves
Speaker 1: to the infrastructure stack built above them. We invest at
Speaker 1: the n f T and gaming layer, and investors in
Speaker 1: Dapper Labs, the creators of the n f T standard
Speaker 1: and one of the most successful n f T game,
Speaker 1: crypto collectible companies. We invest in stable coins and payments
Speaker 1: and UM asset management and wallets and exchanges and really
Speaker 1: defy and all the different places where crypto is starting
Speaker 1: to see evidence of mainstream adoption. I think the differentiating
Speaker 1: factor between us and other investors is, first of all,
Speaker 1: we're crypto native, we only focus on crypto, And second,
Speaker 1: we have super deep technical depth. We audit the smart
Speaker 1: contracts of our portfolio companies, we help them architect the
Speaker 1: token omics UM. We're value added and helpful in helping
Speaker 1: people build companies here on the board of rarable, the
Speaker 1: largest n f T marketplace. You also co founded the
Speaker 1: Apple Music group back and I'm curious what potential you
Speaker 1: see at the intersection of n f t s and music.
Speaker 1: There's so much kind of resentment in the music industry
Speaker 1: about you know, sort of others having the power rather
Speaker 1: than the artists themselves. Could this somehow resolve that tension
Speaker 1: for all of intellectual property. N f t s create
Speaker 1: a way to sell scarce assets collectibles that can become
Speaker 1: more interesting or more rare, or develop more attributes over time.
Speaker 1: That will be true for music. It's been heavily true
Speaker 1: for pictures and videos where we've sold more than thirty
Speaker 1: billion dollars of n f t s in the two
Speaker 1: years since they've been created, making I think n f
Speaker 1: t S the most successful consumer product released since the
Speaker 1: invention of the smartphone. This is an overwhelmingly successful new
Speaker 1: product category, but for music it's been small. We've not
Speaker 1: seen significant traction around music n f t s, but
Speaker 1: we will. You know, going back to before the Internet,
Speaker 1: music was scarce. You could have only a certain number
Speaker 1: a limited number of pressings of vinyl or or or
Speaker 1: rare merch items that people collected. But once music went digital,
Speaker 1: there's no scarcity anymore. A stream of music is ephemeral
Speaker 1: and there's really nothing to collect. N f t s
Speaker 1: put the collectibility back into intellectual property, and music will
Speaker 1: not be left in the gold here. I think artists,
Speaker 1: as you point out, are looking for ways to monetize
Speaker 1: their fan base and increase engagement, and I think they'll
Speaker 1: do that through n f t s. But it's early.
Speaker 1: I think there's only limited evidence of kind of music
Speaker 1: success anywhere near the scale of what we've seen elsewhere
Speaker 1: in n f t S. Right. Still a lot of
Speaker 1: people who listen to music don't know what crypto is,
Speaker 1: don't understand and f T s, but I wonder in
Speaker 1: the future could musicians, could crypto be the new platform
Speaker 1: or potentially more valuable platform then TikTok or YouTube as
Speaker 1: a way to build and and amplify a following. The
Speaker 1: web two business model is to sell attention right to
Speaker 1: pump videos and feeds and kind of keep people glued
Speaker 1: and monetize them through the selling their data effectively to
Speaker 1: advertisers or trving them with data driven advertising. That's not
Speaker 1: a great all for content creators, just don't make a
Speaker 1: lot of money from it. The web three model is
Speaker 1: to create scarce, limited edition digital collectibles that can be
Speaker 1: purchased and owned provably by your fans in any medium,
Speaker 1: and you can get much higher revenue per user. One
Speaker 1: of the most exciting things about n f T s
Speaker 1: are that the average n f T buyer spends between
Speaker 1: three and nine hundred dollars per year on n f
Speaker 1: T s. That compares super favorably to people spend like
Speaker 1: a hundred eighty bucks a year on Netflix or less
Speaker 1: than sixty dollars a year on Spotify. So if people
Speaker 1: are willing to spend more for n f T s
Speaker 1: for digital collectibles, then more of that can go to
Speaker 1: artists and creators, and I think that's a business model
Speaker 1: that most people who are creators will will embrace. So
Speaker 1: what's your how do you see the music industry, let's
Speaker 1: say ten years out, what will be different about it
Speaker 1: and what will you have potentially invested into maybe benefit
Speaker 1: from it. So I think that first of all, to
Speaker 1: build digital collectibles or any type of digital into actual property,
Speaker 1: there's a lot of software that has to be built first.
Speaker 1: We call that in Web three. Those software we call protocols,
Speaker 1: and so we're investing in a lot of the marketplaces
Speaker 1: and protocols on which n f T s are created
Speaker 1: and sold and tracked, to think of it as n
Speaker 1: f T infrastructure. There are examples of n f T
Speaker 1: products that have come to market that have been very
Speaker 1: successful that we've also invested in, like NBA Top Shot,
Speaker 1: which is a basketball collectors game created by Dapper Labs.
Speaker 1: And so I think our intention is to invest up
Speaker 1: and down the n f T stack. But it doesn't
Speaker 1: mean that we're buying n f T s ourselves. We
Speaker 1: actually have a portfolio company called Metaversal that does that.
Speaker 1: But I think one of the big questions for music
Speaker 1: is will the artists release their own creative works digitally
Speaker 1: through n f T s themselves or will they continue
Speaker 1: to give their rights or sell their rights to record
Speaker 1: labels and have those labels do it for them. If
Speaker 1: they choose the latter half, they will really maintain the
Speaker 1: status quo of the USIC industry value chain. But if
Speaker 1: they pulled back their works and they monetize it themselves
Speaker 1: by selling them through very low cost marketplaces to their fans,
Speaker 1: they can have more control over their careers and also
Speaker 1: all creators can have more money. Absolutely fascinating. Thank you
Speaker 1: for laying out a different view of the future. David Patman,
Speaker 1: uh Coin Fund managing partner, appreciate it ten cents As
Speaker 1: a report that the company intends to sell all or
Speaker 1: much of its twenty four billion dollar steak in the
Speaker 1: food delivery company Maytowan is incorrect, Bloomberg crystal Z joins
Speaker 1: us now to explain, and Crystal, as I understand it,
Speaker 1: didn't actually deny the report. Helps make sense of this. So,
Speaker 1: I mean, there are many reasons company deny a story,
Speaker 1: and this tree strategy all of a ser came out
Speaker 1: and said that the story way that Royte has put
Speaker 1: out yesterday's inaccurate. UM. But if you think about the
Speaker 1: kind of strategy that Tanson has been working on since
Speaker 1: last year, they they already disclosed their plans to difester
Speaker 1: Stag in j D and overall in China, you're seeing
Speaker 1: that anti trust is becoming a bigger issue. So the
Speaker 1: Chinese government had flat out say that they don't want
Speaker 1: any one company, one technology company to have too much
Speaker 1: influence in society. So it actually would thematically make a
Speaker 1: lot of sense for UM ten sent to difessor Stag
Speaker 1: in Matuan. But we saw Matuan uh stock absolutely just
Speaker 1: tanked after the report came out, and you know now
Speaker 1: that they're inaccurate. UM statement or denial had gone out,
Speaker 1: it's actually come back up. So it's not to speculate
Speaker 1: what's going on. We're following the story out of Asia,
Speaker 1: out of the US, but there could be most of
Speaker 1: the story behind if there is some truth here, if
Speaker 1: something like this happened, what would be the significance of that. Yeah,
Speaker 1: so Chinese companies as of two years ago have not
Speaker 1: really had any antitrust concern. Basically, if your Chinese tech
Speaker 1: company your strategy has been just to build, just to grow,
Speaker 1: and a lot of ten cents investment has pen across
Speaker 1: all sectors in someone's life. You have your delivery, you
Speaker 1: have grocery, you have all of these um in some
Speaker 1: messaging apps. So in terms of information, in terms of reach,
Speaker 1: Tenson has been really really strong and tapping into all
Speaker 1: these sectors. Um. But now you're seeing that it's taking
Speaker 1: a more Western approach. The government is saying that no
Speaker 1: one company can be that big, and um, it could
Speaker 1: really kick off as furry of deals and ten Cent
Speaker 1: Ali Baba, those could be the first targets. Um. So
Speaker 1: it's Ali Baba we have already seen. You know, they're
Speaker 1: run into kind of scrutiny with the government, and it
Speaker 1: wouldn't be surprising if ten Cent goes into the same direction.
Speaker 1: How does the Chinese governments, you know, recent crackdown on tech,
Speaker 1: I mean it's been happening over the last several years
Speaker 1: play into this. So it's we are seeing this play out.
Speaker 1: And actually, anyways, if you remember the d D I
Speaker 1: p O is probably a really good example. UM. The
Speaker 1: government told them, you know, for enlisting, it's not the
Speaker 1: best option for you. It really manifests in many forms.
Speaker 1: It could be telling big tech company to die fester
Speaker 1: stake in other companies, all just retaining these control in
Speaker 1: China onshore instead of letting them raise capital elsewhere. So
Speaker 1: we're seeing we have been seeing a lot less foreignlisting.
Speaker 1: There hasn't been really any Chinese listing in the US
Speaker 1: after d D, and we've seen how a lot of
Speaker 1: UM Actually multiple Chinese company that have US list of
Speaker 1: vehicle have announced de listing plants. So in many ways, UM,
Speaker 1: the Chinese counter of capital markets has become more closed off,
Speaker 1: and as a country they are really protecting their technology
Speaker 1: a lot more we've been obviously there's been a lot
Speaker 1: of our atility in US markets. Is that are we
Speaker 1: seeing the same thing in in China markets when it
Speaker 1: comes to Chinese I, P O S Chinese listings is
Speaker 1: the window post. Yeah, if you look at Tencent and
Speaker 1: may Juan, those two stocks actually are down between twenty
Speaker 1: five to thirty five percent here to date. It sounds bad,
Speaker 1: but if you compare that to NaSTA, G S and
Speaker 1: P or those tech companies UM in the same category
Speaker 1: in the US, those are probably down double of triple that.
Speaker 1: So the US capital markets is actually um more closed
Speaker 1: off than right now at least more inactive. Is more
Speaker 1: inactive than the Hong Kong or the Shanghai capital markets,
Speaker 1: but that could change anytime. We've seen follow on mark
Speaker 1: in the US come back. Um, so if more of
Speaker 1: these follow on block trains come back in the US,
Speaker 1: we could see I P are coming back as well.
Speaker 1: All right, Crystal Z, thanks for that update, appreciate it.
Speaker 1: And that does it for this edition of Bloomberg Technology.
Speaker 1: Coming up Thursday, we're gonna hear from the co founder
Speaker 1: of Ulu Ventures, Miriam Rivera, talking about her investment strategy
Speaker 1: and how it's changing in a recession. And don't forget
Speaker 1: to check out our podcast wherever you get your podcast.
Speaker 1: I'm Emily check in San Francisco. This is Bloomberg h