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Speaker 1: Bloomberg Audio Studios, podcasts, radio news, from.

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Speaker 2: The heart where innovations, money and power, Collie in Silicon

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Speaker 2: Valley and beyond.

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Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 4: I'm Caroline Heidet Bloomberg's World headquarters in New York, and

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Speaker 4: I met.

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Speaker 5: Lover in San Francisco. Happy Friday. This is Bloomberg Technology Long.

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Speaker 6: Week coming up.

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Speaker 4: We'll discuss the regulatory overhang for Apple, I mean the

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Speaker 4: Justice Department's sweeping lawsuit against the iPhone maker.

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Speaker 6: Full analysis ahead, Plus we'll.

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Speaker 5: Get to read on the IPO ecosystem after a Steri

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Speaker 5: Labs and Reddit went public this week with strong debuts.

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Speaker 6: And talking of the big week.

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Speaker 4: Bitcoin actually set for one of his worst weeks of

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Speaker 4: the year, as ETF demand that slows.

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Speaker 6: We'll discuss that and so much more throughout this hour.

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Speaker 5: Of Apple doj antitrust lawsuit against them and on Thursday

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Speaker 5: session it had a real material impact on the stock.

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Speaker 5: You can see actually we're sort of recovering up four

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Speaker 5: ten to percent in the session, but I still think

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Speaker 5: it was notable that finally there was a headline about

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Speaker 5: antitrust relating to Apple, and there was a clear stock

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Speaker 5: reaction in that session Thursday. What happens next is the

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Speaker 5: big question from all. Let's bring in Bloomberg's Mark German,

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Speaker 5: chief correspondent covering Apple. What's changed in the last twenty

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Speaker 5: four hours since we last spoke. Do we have any

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Speaker 5: signals from how Apple's going to respond to this suit?

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Speaker 3: Yeah? I think reading through the lawsuit reveals a lot.

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Speaker 3: It reveals that the Department of Justice had been working

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Speaker 3: on the case for so long that I would say

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Speaker 3: about sixty to seventy percent of their major points are

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Speaker 3: things that have already been resolved. Apple doesn't believe, of course,

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Speaker 3: they would say this that the case holds much water.

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Speaker 3: They don't believe that they're a monopoly. They seem to

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Speaker 3: find it perplexing that the government is trying to position

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Speaker 3: them a monopoly, whereas they believe they only have about

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Speaker 3: twenty percent global smartphone market share. I think that Apple

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Speaker 3: is prepared for a fight here. I doubt they're going

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Speaker 3: to settle. They've settled in some cases, but I don't

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Speaker 3: think that Tim Cook has shown a willingness to settle.

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Speaker 3: I think Apple believes and based on my read of

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Speaker 3: the lawsuit, I'm not seeing much harm towards consumers. I'm

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Speaker 3: seeing a lot of harm towards developers. I'm seeing harm

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Speaker 3: towards partners and some rivals. But again, here are their

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Speaker 3: top five issues the Department of Justice. A lack of

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Speaker 3: cloud gaming support, allowed of message interoperability, a lack of

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Speaker 3: super apps, which are things like we Chat, a lack

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Speaker 3: of support for third party smart watches to the same

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Speaker 3: degree as the Apple Watch, and a lack of support

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Speaker 3: for Apple Pay the NFC chip on third party applications.

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Speaker 3: I think of those five items, at least three, I

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Speaker 3: would say even three and a half of those items

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Speaker 3: have already been resolved. I expect the messages situation and

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Speaker 3: the NFC situations to be resolved as well. But taking

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Speaker 3: a step back here, you know, despite that, I don't

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Speaker 3: think the DJ is making great arguments given the resolutions

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Speaker 3: already in place. You have to be honest here. A

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Speaker 3: lot of these resolutions are in place because Apple has

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Speaker 3: been afraid of this impending DOJ lawsuit for several years,

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Speaker 3: and they knew these were where they would be attacked,

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Speaker 3: and so they knew they had to fix them. It

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Speaker 3: just for some reason, Apple implementing the fixes didn't stop

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Speaker 3: the DOJ from moving forward anyways, This is.

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Speaker 6: A global company.

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Speaker 4: Tim Cook in China at the moment seemingly all smiles

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Speaker 4: and some conversations happening with Baydoo around potential generative AI.

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Speaker 4: Of course, as many would say, as expected, that was

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Speaker 4: all street journal reporting, Mark. But what seems to be

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Speaker 4: at stake here is a philosophical difference. Philosophy driving Apple

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Speaker 4: and the way in which wants its own ecosystem to work,

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Speaker 4: and a.

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Speaker 6: Philosophy that seems to be changing.

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Speaker 4: Tach among regulators in the US and Europe is still

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Speaker 4: looking at Apple as a whole, not just individual places that

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Speaker 4: they act monopolistically.

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Speaker 3: Yeah, a few things. Well, of course Tim Cook is

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Speaker 3: going to be all smiles in China. He really has

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Speaker 3: no other option. China is a very important market and

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Speaker 3: Tim Cook is a poker player. He's not going to

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Speaker 3: show his true feelings about this DOJ lawsuit, certainly not

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Speaker 3: in front of the press and in a public setting

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Speaker 3: as China is. You know, Apple stock took a big

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Speaker 3: hit yesterday. I could think of ten better reasons for

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Speaker 3: you to sell your Apple stock than what's in this

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Speaker 3: DOJ lawsuit. Apple will certainly have to implement changes. I

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Speaker 3: would imagine that what you've saw in the European Union

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Speaker 3: regarding the digital market, sac changes, appside loading, opening up

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Speaker 3: the NFC chip, You're going to see a lot of

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Speaker 3: those changes over the next years occur in the US.

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Speaker 3: But I don't think that's going to do much to

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Speaker 3: change the fundamental situation with Apple. They're making a lot

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Speaker 3: of money from the app store. They need to figure

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Speaker 3: out a way to bring a next big hardware category

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Speaker 3: to market. Everyone thought that was the car. That's probably

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Speaker 3: what could have added fifty to one hundred billion or

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Speaker 3: more to Apple's bottom line on an annual basis. That's

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Speaker 3: what I could have doubled Apple's market cap to several

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Speaker 3: more trillion over time. That's no longer happening, and so

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Speaker 3: now I think the biggest issue for Apple is not regulation.

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Speaker 3: It's not how the app store is going to be impacted.

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Speaker 3: It's how Apple is going to continue to grow its

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Speaker 3: hardware business. And don't forget, seventy five percent of Apple

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Speaker 3: revenue is still hardware. Fundamentally, they are a hardware company,

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Speaker 3: and so they really need to figure out how they

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Speaker 3: expand there. But still AI, that's another important component, and

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Speaker 3: they need to figure out that situation too.

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Speaker 4: Need the next catalyst, Mark German, We thank you for

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Speaker 4: really breaking that all down, and we.

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Speaker 6: Want to just delve into the overhand from.

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Speaker 4: A regulatory perspect to go a little bit more and

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Speaker 4: the nuances around it.

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Speaker 6: William Cover chitches with.

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Speaker 4: Us George Washington Law School, Global Competition Professor of Law

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Speaker 4: and Policy work at the CMO of and UK at

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Speaker 4: one point, and William to that, and we all know

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Speaker 4: that these sorts of legal wranglings are distraction. How much

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Speaker 4: impact do you think you will have on a business model.

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Speaker 7: I think the distraction comes from the number of people

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Speaker 7: inside the company you have to commit to support the litigation.

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Speaker 7: We don't know what that number is, but the experience

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Speaker 7: in other major cases is that this can be a

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Speaker 7: significant drag on the company. You have also the inhibition

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Speaker 7: that comes from the pending lawsuits. Companies don't want to

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Speaker 7: provide additional ammunition for prosecutors. It means that they're not

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Speaker 7: quite as agile, not quite as adroit in developing business programs.

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Speaker 7: I realize these are somewhat intangible consequences, but then cumulatively,

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Speaker 7: when you take all of the developments we've just been

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Speaker 7: talking about, in the United States and abroad. It's an

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Speaker 7: avalanche of regulatory oversight that has to sap to some

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Speaker 7: extent the creative energy of the company.

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Speaker 5: Mister Kovachich, we sometimes talk about in this program regulating

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Speaker 5: through the courts, you know, a legal action to get

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Speaker 5: a result, that's the bigger picture. Is there an avenue

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Speaker 5: where Apple and the DOJ can just work this out

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Speaker 5: outside of court?

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Speaker 7: I would think there's always the possibility of reaching a solution.

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Speaker 7: The solution, though, is going to have to be one

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Speaker 7: that persuades the just This Department that the overall aim

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Speaker 7: of any specific settlement is not subject to evasion by

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Speaker 7: additional adjustments in.

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Speaker 3: The business model.

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Speaker 7: They'll have to be confident that the solution is one

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Speaker 7: that they can monitor and oversee effectively. I think that

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Speaker 7: there would be a willingness to discuss settlements. But a

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Speaker 7: major message that has come from the age agencies in

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Speaker 7: the US in recent years is a great deal of

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Speaker 7: skepticism about the efficacy of many settlement arrangements and doubts

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Speaker 7: about how readily you can implement them and be effective.

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Speaker 5: In your reading of the suit itself, do you think

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Speaker 5: the JAY.

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Speaker 8: Has a point here?

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Speaker 7: They do have a point, and the point is one

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Speaker 7: that in a sense involves again a collection of intangible considerations.

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Speaker 7: But there's anxiety about the possibility that incumbent firms that

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Speaker 7: have a significant market position, will, through a variety of tactics,

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Speaker 7: diminish the emergence of alternative technologies and.

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Speaker 3: New business models.

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Speaker 7: That concern might be very much the feeling that anti

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Speaker 7: trust law failed in the last thirty years to deal

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Speaker 7: effectively with the emergence of new tech. And I believe

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Speaker 7: a state of mind and perspective that has a tight

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Speaker 7: grip on the agencies is that they're not going to

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Speaker 7: allow the permissiveness of the past to continue. And it

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Speaker 7: means that they're going to dig in and look carefully

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Speaker 7: at anything that appears to be an effort by an

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Speaker 7: incumbent to see that new technologies, new business approaches do

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Speaker 7: not emerge.

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Speaker 6: This is dj action.

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Speaker 4: We've seen FTC have a similar focus. But sometimes this

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Speaker 4: is political. In an election year, does this sort of continue.

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Speaker 7: I'm going to give you a bit of speculation that

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Speaker 7: I could never prove in a rigorous way, but I

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Speaker 7: noticed that President Biden's opponent in many instances has been

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Speaker 7: skeptical of tech. Now that skepticism has been focused in

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Speaker 7: particular on the information services platforms that are involved in

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Speaker 7: involved in advertising, involved in social messaging.

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Speaker 3: But it was Donald Trump's Justice.

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Speaker 7: Department that initiated the Google search monopolization case. It was

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Speaker 7: Donald Trump's Federal Trade Commission that began the lawsuit against

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Speaker 7: Meta for its acquisition of Instagram. It could entirely be

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Speaker 7: possible that, at least for tech, given the way their

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Speaker 7: political contributions go, given his concern about the role they've

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Speaker 7: played in his own electoral process in the past, that

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Speaker 7: he may look at the FTC in the Department of

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Speaker 7: Justice and say, keep up the good work.

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Speaker 4: It was a Trump as well when this was first

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Speaker 4: initiated to Apple back in twenty nineteen, William cover Chich,

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Speaker 4: we thank you so much.

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Speaker 6: George Washington Law School, absolutely brilliant to get his take.

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Speaker 4: Mean while coming up, Look, we're going to be chatting

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Speaker 4: to a head moderator of Reddit forum all street bets.

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Speaker 4: You know you know it, well, I's going to be

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Speaker 4: joining us find out how reddits ipo, how much the

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Speaker 4: effect to the user base there's in Bloomberg Technology.

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Speaker 5: The fourth largest IPO of the year, Reddit climbed forty

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Speaker 5: eight percent on its first day of trading yesterday, after

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Speaker 5: pricing at the top of its marketed range, raising seven

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Speaker 5: hundred and forty eight million dollars. Let's bring in Bloombo's

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Speaker 5: Katie Ruth, who has lived and breathed reddits ipo this week.

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Speaker 5: That's true. I mean for many people, I would say

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Speaker 5: this went well.

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Speaker 8: This ipo.

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Speaker 6: So it did the first day.

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Speaker 9: Right now it's trading down, although yes, technically it's still

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Speaker 9: above well above the IPO price, it's not really much

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Speaker 9: above where it opened yesterday. And so I think there's

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Speaker 9: two numbers to watch here. It's the thirty four dollars

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Speaker 9: where priced at the top of the range, and that's

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Speaker 9: where the insiders, you could say, the institutional investors that

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Speaker 9: have banker connections, that's where they bought. And then some

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Speaker 9: some of Reddit's top users were able to buy at

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Speaker 9: that price. And then there's everybody else which bought it

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Speaker 9: that forty seven dollars a share where it opened yesterday,

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Speaker 9: and right now it's trading at.

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Speaker 8: Forty seven ish.

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Speaker 9: So and it was actually dipped below that opening price

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Speaker 9: this morning for a little bit, so some people could

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Speaker 9: have already lost some money on Reddit. But you know,

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Speaker 9: most are making money.

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Speaker 4: And certainly long term investors have cashed in here potentially, Katie,

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Speaker 4: I'm interested as to what this means for ongoing IPOs,

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Speaker 4: what this means more broadly, for money left on the table.

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Speaker 6: We want IPOs to do well.

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Speaker 4: Bankers certainly do, but the people raising the money don't

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Speaker 4: want them to go too well and feel that they

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Speaker 4: could have rais Yeah, the money left on.

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Speaker 9: The table argument is an interesting one. It sounds like

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Speaker 9: what you're referencing is where they could have raised even

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Speaker 9: more money and had less of a pop. I think

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Speaker 9: it's too early to tell whether Reddit allowed for too

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Speaker 9: much of a pop. You know, as I noted, it's

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Speaker 9: already trading lower today, and you know, we'll see what

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Speaker 9: happens next week. But you know, it depends on what

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Speaker 9: they're optimizing for. If they if they're just optimizing for

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Speaker 9: raising a little bit more cash, then you want to

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Speaker 9: price it high. But you don't want to make a

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Speaker 9: bad first impression on the stock market because it could

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Speaker 9: be really hard to recover from that. And so that's

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Speaker 9: you know, the argument that the bankers will make about

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Speaker 9: why they price it to pop. They also want these insiders,

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Speaker 9: these large anchor investors to keep buying more shares you know,

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Speaker 9: in this IPO and ips to come, and they're not

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Speaker 9: going to do that. They're not going to take that

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Speaker 9: risk on a new listing on the first day unless

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Speaker 9: they feel like they're getting some sort of discount.

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Speaker 4: Katie with go get some thank you so much as

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Speaker 4: we brace for more IPOs to come in the next

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Speaker 4: few weeks, I'm sure, but well, we want to get

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Speaker 4: a take.

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Speaker 6: On how the users, those redditors are.

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Speaker 4: Feeling about the company's IPO. They had a chance to

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Speaker 4: buy in, and of course we know the a vocal bunch.

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Speaker 4: Nor ours with us as a senior analyst and private

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Speaker 4: equity back to healthcare company. There's also been a Reddit

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Speaker 4: user for more than ten years, a moderator for the.

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Speaker 6: Forum Wall Street Bets for.

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Speaker 4: Nine, spending the most recent three years as a head moderator.

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Speaker 4: He joins us now to tell us more well basically

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Speaker 4: about Reddit's debut. How has Wall Street bets, How has

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Speaker 4: your community reacted?

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Speaker 6: Have you been positive on it?

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Speaker 3: It's really been a mixed bag.

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Speaker 10: There's a ton of positivity but also a lot of

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Speaker 10: people excited to short byputs. But Paul and all, they're

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Speaker 10: just excited for the volatility, and that's absolutely what we're

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Speaker 10: seeing here today.

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Speaker 5: Nor last week on the show, we reported on the

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Speaker 5: post that Reddit made itself saying we're going to do

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Speaker 5: an AMA and we will answer the questions in video format,

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Speaker 5: selecting the most up to posts. At the time that

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Speaker 5: we reported it on this program, the most upvoted post

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Speaker 5: is why are you even going public? It's not a

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Speaker 5: great vibe right now. Just give me your reaction to that.

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Speaker 5: I mean, it's the function of Reddit ironically pushing the

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Speaker 5: management to think again.

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Speaker 10: Absolutely, yeah, I think this is actually a great time

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Speaker 10: for Reddit to IPOs I'm surprised. Certainly there was a

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Speaker 10: lot of turmoil over the past year, but if you

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Speaker 10: look at what came out of that from a business perspective,

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Speaker 10: it's actually been very positive. We saw with the Reddit

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Speaker 10: protests that actually people found Reddit completely indispensable. There was

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Speaker 10: so much opportunity for a competitor to take reddits place,

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Speaker 10: and nothing came out of it. So this just goes

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Speaker 10: to show how deeply ingrained Reddit is in the zeitgeist

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Speaker 10: and that it's here to stay.

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Speaker 5: Nor there are many redditors and indeed moderators that have

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Speaker 5: big concerns on reddits plan to license user and platform

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Speaker 5: data to AI companies to use it to train la lens.

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Speaker 5: What's your position on it from.

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Speaker 10: A business perspective, It's definitely a risk. We're seeing that

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Speaker 10: the FTC is also looking into this, but it is

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Speaker 10: a huge opportunity and Reddit owns something that is very

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Speaker 10: special for lllms, and that is real time user reactions

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Speaker 10: to what's going on in the world around us, and

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Speaker 10: that's something that I think no other platform has. So

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Speaker 10: it's a great opportunity for Reddit to make money off

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Speaker 10: of that and then turn around and invest that money

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Speaker 10: in improving the user experience.

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Speaker 4: No, I want to ask about the evolution of moderation,

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Speaker 4: because money would say in anticipation in the IPO, reditor

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Speaker 4: really read it, really got ahead of ensuring that this

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Speaker 4: became a safer space to.

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Speaker 6: Be able to comment. Does that stand?

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Speaker 4: How has anything been lost in the focus of needing

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Speaker 4: to clean up the platform.

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Speaker 10: We've definitely lost a little bit of the chaos and

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Speaker 10: grit that you would have seen on Reddit ten fifteen

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Speaker 10: years ago. And although that lose some of its charm,

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Speaker 10: I think it's more reflective of the state of the

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Speaker 10: Internet rather than Reddit as a platform itself. We're seeing

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Speaker 10: all platforms, social media platforms censor in response to government

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Speaker 10: regulations and laws that have been placed on hate speech

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Speaker 10: and other types of speech.

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Speaker 3: So Reddit is actually maintaining.

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Speaker 10: Its position as the front page of the Internet and

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Speaker 10: simply reflecting what is on the Internet through these policy changes.

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Speaker 4: Wall streetbats was what we talked about day in, day

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Speaker 4: out in twenty twenty one through twenty twenty two name

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Speaker 4: being made around GameStop, the power that reditors had in

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Speaker 4: that moment. What do you think the powers of redditors

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Speaker 4: around the Reddit stock itself.

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Speaker 10: It'll be interesting to see It'll be interesting to see

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Speaker 10: you when redditors feel empowered that the actions they take

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Speaker 10: on the platform can make a meaningful impact on the

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Speaker 10: stock price of Reddit itself. Like with the game Stop debacle,

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Speaker 10: we saw over a billion page views in a very

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Speaker 10: very short period of time in a month, and we

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Speaker 10: saw that continue for several months. So to think that

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Speaker 10: redditors now who are might be investors themselves, can have

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Speaker 10: a positive impact on the stock will simply deepen their

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Speaker 10: relationship with the company and with the platform.

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Speaker 5: No, we just have thirty seconds for someone that has

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Speaker 5: no idea what Reddit is what's your pitch for them

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Speaker 5: to get onto the platform.

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Speaker 10: Reddit is a city that is incredibly deep, with countless

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Speaker 10: communities to fill every need that you knew or didn't

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Speaker 10: know that you are interested in learning more about. If

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Speaker 10: you've got an intellectual curiosity that can't be satisfied, Reddit

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Speaker 10: is the place for you.

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Speaker 5: Head moderator for and Wall Street bets on Reddit, and

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Speaker 5: I point out that moderators are volunteers to all intents

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Speaker 5: and purposes and are how great to have you on

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Speaker 5: the program.

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Speaker 4: Time Now tech first Up mayto one's quarterly revenue, it

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Speaker 4: climbed better than expected twenty three percent. Now that's a

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Speaker 4: sign that the company is actually making some headway in

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Speaker 4: its efforts to fend off a challenge from Byte Dances

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Speaker 4: Doyen in China's meal delivery arena. Now shares in the

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Speaker 4: company are up this year after losing more than half

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Speaker 4: of their value in twenty twenty three. Plus Wawei and

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Speaker 4: a secretive chip making partner in China, Well, they file

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Speaker 4: patterns for a lower tech but potentially effective way to

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Speaker 4: make advanced semiconductors.

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Speaker 6: And we're talking about self aligned quadruple patterning here or SAQP.

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Speaker 4: Basically, it's raising the prospect that China could improve chip

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Speaker 4: production techniques despite.

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Speaker 6: US efforts to hold its progress.

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Speaker 4: And lastly, Tesla, we'll go chick with steck with China

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Speaker 4: here because it's reduced production at its plants over there

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Speaker 4: amid us some sluggish growth and EV sales and intense

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Speaker 4: competition in the.

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Speaker 6: World's biggest all code auto market.

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Speaker 4: Now the car maker has instructed employees at its Shanghai

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Speaker 4: facility to lower production of the Model Y and Model three.

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Speaker 4: That's two vehicles that Tesla actually makes over there in

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Speaker 4: China by working just five days a week instead of

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Speaker 4: usual six and a half half days.

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Speaker 6: All of this, according to sources.

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Speaker 5: British audience in the UK pay attention. Vodaphone and Three's

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Speaker 5: UK combination is facing a deep check by the UK

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Speaker 5: Competition Markets Authority, the CMA, the regulator. They issued a

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Speaker 5: statement Friday saying they're concerned and they don't buy the

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Speaker 5: argument from Vodafone and three that combining the two would

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Speaker 5: mean better deals for customers. Vodaphones London listed shares actually

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Speaker 5: at one point eight percent with a little to go,

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Speaker 5: but it's an interesting story about consolidation in that market.

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Speaker 8: This is Bloomberg.

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Speaker 6: Welcome back to me new MEOT technology. I'm Caroline Hid

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Speaker 6: in New.

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Speaker 8: York and I'm Ed Ludlow in San Francisco.

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Speaker 4: Let's talk about this whole new wave of IPO names.

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Speaker 4: Read at Asteri Labs debuting this week and just whether

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Speaker 4: or not that's going to open up the pipeline. A

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Speaker 4: little bit more broadly, eyipa Practice Co had richual Garings

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Speaker 4: here to take basically on the feel good factor right now.

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Speaker 4: Thus far these companies have come to the market and come.

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Speaker 6: Well, does that mean suddenly the.

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Speaker 4: Yours the other names that we've been waiting for for

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Speaker 4: a long time, I'm gonna be galvanized.

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Speaker 6: Do you think it.

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Speaker 1: Definitely helps the momentum for what we're expecting in the

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Speaker 1: IPO market, the pipeline that.

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Speaker 11: We're seeing come through. As you all, we're noting.

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Speaker 1: Though, the post IPO performance of these companies that even

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Speaker 1: the ones before them, will really help continue setting the

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Speaker 1: stage and help influence what will continue coming to market

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Speaker 1: over these next several months and throughout the remainder of

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Speaker 1: twenty four We've got.

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Speaker 11: You know, positive momentum.

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Speaker 1: The trends are all going in the right way, but

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Speaker 1: not without its challenges. We're in a political you know cycle,

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Speaker 1: a political election cycle this year, so you know there's

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Speaker 1: going to continue to be elements and dynamics.

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Speaker 4: That everyone's going to have to navigate, dynamics being also

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Speaker 4: that the market is hungered for hungry for AI names.

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Speaker 4: When you're advising these companies, when that are coming to

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Speaker 4: you saying I want to navigate the quidity events, I

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Speaker 4: want to analyze the market.

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Speaker 6: Do you think about.

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Speaker 4: Basically where they need to be dining out on AI

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Speaker 4: for example, Well.

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Speaker 1: A AI is certainly something drawing a lot of focus interests,

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Speaker 1: particularly from investors, and when we think about AI, I

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Speaker 1: think about it in kind.

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Speaker 11: Of a few different buckets. You got the pure play.

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Speaker 1: AI companies, those that are developing the technology. There is

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Speaker 1: a lot of continued interest in this area, particularly in.

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Speaker 11: The private financing space.

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Speaker 1: So these companies are generally getting funded and where we

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Speaker 1: start seeing a flood of you know, ideos from them

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Speaker 1: over the coming months, and ye're meeting at onesie twosies,

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Speaker 1: but they're getting the financing they need, they're developing the technology.

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Speaker 1: But then I also look at other companies and how

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Speaker 1: they're employing AI within their companies and relative.

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Speaker 11: To their strategy. We're seeing that play out.

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Speaker 1: We're going to continue, not without skepticism from investors, kind

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Speaker 1: of proving it to me. And you've got those kind

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Speaker 1: of in the broader ecosystem that we're seeing right now

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Speaker 1: and how they're contributing to the A to AI in

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Speaker 1: that broader ecosystem, and we're going to continue seeing those

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Speaker 1: come to market as well.

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Speaker 5: Rachel, this is exactly what I was writing about in

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Speaker 5: my column in Tech Daily this morning, that Reddit, for example,

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Speaker 5: got its AI story right going into the IPO, you know,

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Speaker 5: the data licensing business. I think what would be interesting

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Speaker 5: to learn from you is what's more important that in

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Speaker 5: the S one process and the road show you sell

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Speaker 5: your AI story or is it more important that actually,

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Speaker 5: now a company like Reddit is listed, they can prove

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Speaker 5: they have an AI business, you know, after the fact

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Speaker 5: that it's actually real.

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Speaker 11: I think both are critical for obvious reasons.

444
00:22:44,359 --> 00:22:47,399
Speaker 1: But where we're seeing, you know, even when you're putting

445
00:22:47,400 --> 00:22:50,080
Speaker 1: that into your S one, going through your road shows,

446
00:22:50,920 --> 00:22:54,600
Speaker 1: investors asking you know, to prove it. So it's that

447
00:22:54,760 --> 00:22:58,200
Speaker 1: more it's not just about writing about the possibility and

448
00:22:58,520 --> 00:22:59,520
Speaker 1: the idea.

449
00:22:59,400 --> 00:23:02,639
Speaker 11: But what have you done even up to this point to.

450
00:23:02,720 --> 00:23:05,800
Speaker 1: Share with investors how you're proving this out, how you

451
00:23:05,920 --> 00:23:10,040
Speaker 1: truly have a strong plan that you're then now executing on.

452
00:23:10,480 --> 00:23:12,520
Speaker 1: And then proof will be in the putting post IPO,

453
00:23:12,960 --> 00:23:15,360
Speaker 1: how you're coming out and continuing to execute.

454
00:23:14,960 --> 00:23:17,239
Speaker 11: And perform to back all of that up.

455
00:23:18,040 --> 00:23:20,680
Speaker 1: And so as we continue to watch the performance of

456
00:23:20,760 --> 00:23:23,320
Speaker 1: these stocks, you know, two months from now, three months

457
00:23:23,359 --> 00:23:26,200
Speaker 1: from now so forth, they've got to continue demonstrating that

458
00:23:26,320 --> 00:23:29,320
Speaker 1: performance and stay good on the promises and commitments they made.

459
00:23:29,920 --> 00:23:33,639
Speaker 5: Rachel, how do you assess this week, this week's IPO window.

460
00:23:33,840 --> 00:23:36,159
Speaker 5: I don't even know if we call it window versus

461
00:23:36,400 --> 00:23:37,679
Speaker 5: what we saw in September.

462
00:23:38,880 --> 00:23:42,640
Speaker 1: You know, this is to me demonstrating, you know, we've

463
00:23:42,680 --> 00:23:47,680
Speaker 1: got investor interest around IPOs. The companies that are coming

464
00:23:47,720 --> 00:23:50,240
Speaker 1: to market right now is what we've expected. They're stilled,

465
00:23:50,320 --> 00:23:52,760
Speaker 1: they're large, they have a name, they have some history,

466
00:23:52,880 --> 00:23:56,320
Speaker 1: you know, performance history behind them as well. So the

467
00:23:56,680 --> 00:24:00,360
Speaker 1: risk profile is one of an appetite that's attracting investors.

468
00:24:00,680 --> 00:24:01,600
Speaker 6: As they continue to.

469
00:24:01,600 --> 00:24:04,359
Speaker 1: Perform, hopefully that starts to open up opportunity for more

470
00:24:04,400 --> 00:24:07,440
Speaker 1: the growth oriented companies to start coming to market and

471
00:24:07,560 --> 00:24:10,720
Speaker 1: really help drive some momentum and valumes over time getting

472
00:24:10,720 --> 00:24:12,200
Speaker 1: inspect to those historical norms.

473
00:24:12,520 --> 00:24:15,160
Speaker 11: But this is it's going to be instead a steady recovery.

474
00:24:15,320 --> 00:24:18,520
Speaker 1: We're not expecting a big, you know, balloon if you will,

475
00:24:19,160 --> 00:24:22,480
Speaker 1: or huge kind of spike. A steady recovery is what

476
00:24:22,560 --> 00:24:24,840
Speaker 1: we've continued to expect throughout twenty twenty four.

477
00:24:24,920 --> 00:24:26,960
Speaker 11: As we continue to see the market rebound.

478
00:24:27,320 --> 00:24:30,800
Speaker 4: I'm chure what's the motivating factor here? Med It wanted

479
00:24:30,920 --> 00:24:32,840
Speaker 4: IPO for years.

480
00:24:32,640 --> 00:24:35,000
Speaker 6: Says twenty twenty one. It was about a liquidity event.

481
00:24:34,840 --> 00:24:38,000
Speaker 4: For employees largely, but I'm sure time for investors to

482
00:24:38,520 --> 00:24:39,360
Speaker 4: have some money back.

483
00:24:39,680 --> 00:24:40,800
Speaker 6: What's driving other names?

484
00:24:42,560 --> 00:24:44,400
Speaker 11: Everyone had their facts and circumstances.

485
00:24:44,480 --> 00:24:45,840
Speaker 1: Some's going to be you know, they're going to be

486
00:24:45,880 --> 00:24:48,640
Speaker 1: anchoring around valuations and are they getting to a valuation

487
00:24:48,840 --> 00:24:54,080
Speaker 1: that they're expecting liquidity for employees, for other founders a

488
00:24:54,160 --> 00:24:56,320
Speaker 1: lot of PE right, we're going to start seeing how

489
00:24:56,560 --> 00:24:58,919
Speaker 1: how is PE going to start driving valuume. They've been

490
00:24:59,000 --> 00:25:01,840
Speaker 1: having some companies they've been holding for quite some time.

491
00:25:02,200 --> 00:25:03,920
Speaker 1: They want to start entering back into the M and

492
00:25:04,000 --> 00:25:07,320
Speaker 1: A market. As we see rates coming down, hopefully we'll

493
00:25:07,359 --> 00:25:10,480
Speaker 1: see more M and A activity even more from pe.

494
00:25:10,920 --> 00:25:13,880
Speaker 1: I think that's going to start influencing some exit from

495
00:25:14,200 --> 00:25:15,120
Speaker 1: their stage as well.

496
00:25:16,080 --> 00:25:18,800
Speaker 4: We want to thank you ey IPO Practice cohad Rachel

497
00:25:18,840 --> 00:25:21,760
Speaker 4: goering there on the IPO landscape where we just want

498
00:25:21,760 --> 00:25:24,480
Speaker 4: to stick with well companies going public none all of

499
00:25:24,520 --> 00:25:26,639
Speaker 4: them do IPOs, some of them do SPACs.

500
00:25:26,720 --> 00:25:28,840
Speaker 6: And former President Donald Trump's.

501
00:25:28,440 --> 00:25:31,520
Speaker 4: Media startup is likely to debut as a public company.

502
00:25:31,320 --> 00:25:34,080
Speaker 6: In coming days. Having voted today on whether.

503
00:25:34,000 --> 00:25:37,560
Speaker 4: Blank Check Company Digital World acquisition can proceed with taking

504
00:25:37,600 --> 00:25:40,520
Speaker 4: Trump Media and Technology Group public. It runs, of course

505
00:25:40,600 --> 00:25:44,080
Speaker 4: truth Social the platform, and it's been a long delayed

506
00:25:44,119 --> 00:25:46,480
Speaker 4: deal and seemingly has now approved. And a number of

507
00:25:46,520 --> 00:25:49,680
Speaker 4: insiders from management to sponsors and even former associates who

508
00:25:49,800 --> 00:25:52,399
Speaker 4: soone to stall or block the deal stand to pocket

509
00:25:52,760 --> 00:25:55,000
Speaker 4: millions of dollars and what have you got?

510
00:25:55,840 --> 00:25:57,400
Speaker 5: Okay, Coming up on the program, we're going to dive

511
00:25:57,440 --> 00:26:00,520
Speaker 5: into the world of climate investing AI. What on earth

512
00:26:00,600 --> 00:26:03,800
Speaker 5: happened this week in IPOs, everything and anything that we've

513
00:26:03,840 --> 00:26:07,560
Speaker 5: spoken about this week with Initialized Capital partner Kim Mai Cutler.

514
00:26:08,119 --> 00:26:10,120
Speaker 5: Really looking forward to that conversation. Next, this has Bloom

515
00:26:10,160 --> 00:26:30,320
Speaker 5: their technology. This is the Blackwell GPU or graphics processing

516
00:26:30,440 --> 00:26:34,200
Speaker 5: unit in Vidia's next generation AI accelerator, and it's the

517
00:26:34,320 --> 00:26:38,080
Speaker 5: star of GtC in Vidia's annual developers conference, which has

518
00:26:38,119 --> 00:26:39,840
Speaker 5: been dubbed the Woodstock for AI.

519
00:26:40,200 --> 00:26:42,800
Speaker 8: The B two hundred is more powerful than the H

520
00:26:42,920 --> 00:26:43,840
Speaker 8: one hundred.

521
00:26:43,600 --> 00:26:46,960
Speaker 5: The prior generation AI accelerator that's driven in video to

522
00:26:47,040 --> 00:26:50,160
Speaker 5: be the world's third most valuable company compared to Hopper.

523
00:26:50,359 --> 00:26:54,040
Speaker 5: Blackwell offers two point five times the performance for training

524
00:26:54,200 --> 00:26:57,920
Speaker 5: large language models and five times performance for running the model,

525
00:26:57,960 --> 00:27:01,600
Speaker 5: a process known as inference. In offer Blackwell in different forms,

526
00:27:01,680 --> 00:27:04,760
Speaker 5: including is the GB two hundred super chip, two Blackwell

527
00:27:04,880 --> 00:27:09,000
Speaker 5: GPUs and one Grace CPU in combination. Trays and trays

528
00:27:09,000 --> 00:27:11,840
Speaker 5: of GB two hundred go into liquid called rack scale

529
00:27:11,920 --> 00:27:14,960
Speaker 5: systems like this and ship to server companies and cloud

530
00:27:15,000 --> 00:27:18,480
Speaker 5: providers for their data centers. It's a market that Nvidia's

531
00:27:18,520 --> 00:27:21,040
Speaker 5: CEO says will start at two hundred and fifty billion

532
00:27:21,040 --> 00:27:24,399
Speaker 5: dollars annually and grow from there. The technology is capable

533
00:27:24,440 --> 00:27:29,639
Speaker 5: of processing AI models with one trillion parameters. GtC crowds

534
00:27:29,760 --> 00:27:33,280
Speaker 5: literally circled around the single demo server rak in droves.

535
00:27:33,359 --> 00:27:39,000
Speaker 8: The real thing start shipping in late twenty twenty four, so.

536
00:27:39,080 --> 00:27:43,119
Speaker 5: Among everything else, GtC ended last night, Caro, and you

537
00:27:43,200 --> 00:27:45,840
Speaker 5: know it was all about bow down to Blackwell.

538
00:27:45,760 --> 00:27:46,760
Speaker 8: And the deity.

539
00:27:46,880 --> 00:27:49,680
Speaker 5: Whether you're an AI startup founder or you are ADEL

540
00:27:49,800 --> 00:27:53,159
Speaker 5: or an infrastructure company, bow down to Jensen Wang and

541
00:27:53,280 --> 00:27:56,000
Speaker 5: in that might sound extreme, but trust me, they're on

542
00:27:56,040 --> 00:27:56,440
Speaker 5: the ground.

543
00:27:57,040 --> 00:27:57,960
Speaker 3: It was true.

544
00:27:58,480 --> 00:28:01,000
Speaker 4: And share prices really read benefit as well, not so

545
00:28:01,119 --> 00:28:03,600
Speaker 4: much of Nvidio, but sort of those that he anointed

546
00:28:03,680 --> 00:28:05,840
Speaker 4: the synopsis of this world, you say, Dell as well,

547
00:28:05,920 --> 00:28:08,800
Speaker 4: some of these companies managing to push on higher because

548
00:28:08,880 --> 00:28:11,600
Speaker 4: we are starting to see how they're able to tap

549
00:28:11,680 --> 00:28:14,840
Speaker 4: into this ecosystem that basically is the driving force from

550
00:28:14,840 --> 00:28:17,879
Speaker 4: an infrastructure perspective of everything that we now talk from

551
00:28:17,920 --> 00:28:20,800
Speaker 4: a value perspective in well public.

552
00:28:20,560 --> 00:28:21,480
Speaker 6: And private markets.

553
00:28:22,200 --> 00:28:24,840
Speaker 5: And as we've been saying, the show, get the AI

554
00:28:25,040 --> 00:28:27,119
Speaker 5: story right, because AI was also a big part of

555
00:28:27,160 --> 00:28:31,639
Speaker 5: the story. Yesterday, for Reddits public listing Day, Initialized Capitals

556
00:28:31,680 --> 00:28:35,200
Speaker 5: celebrated the IPO of its portfolio company, which is banking

557
00:28:35,400 --> 00:28:39,280
Speaker 5: on licensing its users data to builders of large language

558
00:28:39,320 --> 00:28:43,360
Speaker 5: models to fuel reddits growth. Let's bringing Initialized Capital partner

559
00:28:43,440 --> 00:28:44,760
Speaker 5: k in my cutler for more.

560
00:28:44,960 --> 00:28:46,800
Speaker 8: In today's VC Spotlight.

561
00:28:47,600 --> 00:28:51,640
Speaker 5: I wrote in my column today Reddit got the AI story, right,

562
00:28:51,760 --> 00:28:54,960
Speaker 5: I just thought it was really interesting that they went

563
00:28:55,040 --> 00:28:55,520
Speaker 5: there with that.

564
00:28:56,200 --> 00:28:57,320
Speaker 8: What did you make of it?

565
00:28:57,680 --> 00:29:00,240
Speaker 12: I mean, I think it's a tremendous day or the

566
00:29:00,280 --> 00:29:04,280
Speaker 12: whole team there for Steve, for Alexis. You know, that

567
00:29:04,680 --> 00:29:07,320
Speaker 12: company in particular has a long history and close ties

568
00:29:07,400 --> 00:29:10,920
Speaker 12: obviously with Sam Altman who runs openings, and so I

569
00:29:11,000 --> 00:29:14,320
Speaker 12: think that relationship over the last decade and more really

570
00:29:14,360 --> 00:29:19,400
Speaker 12: benefited their ability to ride this wave and rend itself

571
00:29:19,400 --> 00:29:22,160
Speaker 12: as an incredible consumer internet property. I mean, I'm a

572
00:29:22,280 --> 00:29:24,720
Speaker 12: user multiple times a day every day. I mean the

573
00:29:24,760 --> 00:29:26,840
Speaker 12: wealth of information that I have in all the different

574
00:29:27,000 --> 00:29:29,640
Speaker 12: like subcommunities, and the way that people talk honestly and

575
00:29:29,720 --> 00:29:32,280
Speaker 12: openly and freely about.

576
00:29:32,000 --> 00:29:32,520
Speaker 6: What they think.

577
00:29:33,400 --> 00:29:36,480
Speaker 12: You know, it's just an incredible data source and training set.

578
00:29:36,600 --> 00:29:39,080
Speaker 5: So what I find so interesting, particularly in the context

579
00:29:39,120 --> 00:29:41,920
Speaker 5: of where Initialized will deploy capital, right, the types of

580
00:29:42,000 --> 00:29:45,280
Speaker 5: startups that you'd invest in is redd It's an example

581
00:29:45,440 --> 00:29:47,680
Speaker 5: of where you don't need to be a builder of

582
00:29:47,800 --> 00:29:50,840
Speaker 5: large language models or an infrastructure play to be a

583
00:29:50,960 --> 00:29:54,240
Speaker 5: participant in what's happening in AI. Do you have any

584
00:29:54,280 --> 00:29:57,760
Speaker 5: parallel examples of companies you think will benefit from the

585
00:29:57,920 --> 00:29:59,440
Speaker 5: infrastructure investment that's happening.

586
00:30:00,080 --> 00:30:03,720
Speaker 12: I think for us, you know, we've long done many,

587
00:30:03,800 --> 00:30:07,560
Speaker 12: many different deals that have you know, very specific applications

588
00:30:07,680 --> 00:30:11,840
Speaker 12: to different workflows and different industries. So for example, you know,

589
00:30:11,960 --> 00:30:14,280
Speaker 12: you could think about the healthcare use case. We have

590
00:30:14,320 --> 00:30:17,840
Speaker 12: a company called glass Health that supports medical professionals and diagnoses.

591
00:30:18,240 --> 00:30:20,560
Speaker 12: We have another company called Parta that you know serves

592
00:30:20,560 --> 00:30:24,400
Speaker 12: as an AI copilot for financial compliance. And so there's

593
00:30:24,400 --> 00:30:28,680
Speaker 12: all these different specific industries with specific like legal requirements,

594
00:30:28,760 --> 00:30:32,600
Speaker 12: workflows and ways that people work that will need you know,

595
00:30:33,440 --> 00:30:36,720
Speaker 12: very very honed and refined applications of these foundational.

596
00:30:36,320 --> 00:30:37,760
Speaker 6: Models and kill.

597
00:30:38,240 --> 00:30:40,360
Speaker 4: It's a long way coming for some of these checks

598
00:30:40,400 --> 00:30:43,800
Speaker 4: that you've made into the Glass Health that you mentioned,

599
00:30:43,920 --> 00:30:47,080
Speaker 4: pano arenas, some of these other AI adjacent names that

600
00:30:47,120 --> 00:30:47,840
Speaker 4: you've invested in.

601
00:30:48,760 --> 00:30:50,400
Speaker 6: How are you thinking about exit strategy?

602
00:30:50,440 --> 00:30:50,560
Speaker 1: Though?

603
00:30:50,600 --> 00:30:52,880
Speaker 4: Longer term, what's been so interesting about this week was

604
00:30:52,960 --> 00:30:58,200
Speaker 4: also the Microsoft basically acqua hire of Inflection Stuff assum

605
00:30:58,320 --> 00:31:00,720
Speaker 4: when originally of DeepMind go Mean to be the head

606
00:31:00,760 --> 00:31:03,960
Speaker 4: of consumer AI from Microsoft. It feels as though big

607
00:31:04,080 --> 00:31:05,720
Speaker 4: tech juggernals are partnering in.

608
00:31:05,800 --> 00:31:08,040
Speaker 6: More and more innovative ways to some of the larger

609
00:31:08,120 --> 00:31:10,520
Speaker 6: language model companies. But how cool does that go for

610
00:31:10,600 --> 00:31:11,880
Speaker 6: the entire ecosystem here?

611
00:31:13,240 --> 00:31:15,120
Speaker 12: Yeah, I mean, I think some of the developments that

612
00:31:15,160 --> 00:31:19,200
Speaker 12: we've seen this week are reflection of consolidation in players

613
00:31:19,240 --> 00:31:22,800
Speaker 12: in the foundational market, the foundational model market. So obviously

614
00:31:22,920 --> 00:31:24,920
Speaker 12: they're there are companies that are far at a way

615
00:31:25,480 --> 00:31:28,920
Speaker 12: you know, have tremendous you know, revenue you know, like

616
00:31:29,000 --> 00:31:33,960
Speaker 12: revenue run rates and thinking like Shatgypt and Nanthropic, and

617
00:31:34,000 --> 00:31:36,440
Speaker 12: then companies that aren't quite at that level or don't

618
00:31:36,480 --> 00:31:40,200
Speaker 12: have that same level of revenue growth are having to

619
00:31:40,240 --> 00:31:42,520
Speaker 12: make different decisions about you know, what they need to

620
00:31:42,600 --> 00:31:45,000
Speaker 12: do given the cost of compute and the cost of

621
00:31:45,080 --> 00:31:48,880
Speaker 12: going forward. You know, I think, you know, as a

622
00:31:48,920 --> 00:31:51,920
Speaker 12: seat stage investor, we have companies that we're working with

623
00:31:52,520 --> 00:31:54,840
Speaker 12: for you know, we might be working with them for

624
00:31:54,960 --> 00:31:57,719
Speaker 12: five to ten ten years before we go you know public.

625
00:31:58,520 --> 00:32:00,560
Speaker 12: And you know, if I look at the early you know,

626
00:32:00,680 --> 00:32:04,560
Speaker 12: some of the earlier friends, our previous IPOs like Instacurrent,

627
00:32:04,640 --> 00:32:09,640
Speaker 12: Coybats have also had you know, a very positive momentum

628
00:32:09,680 --> 00:32:12,400
Speaker 12: over the last six six months, two a year. And

629
00:32:12,480 --> 00:32:15,320
Speaker 12: then going forward, we're going to have companies that perhaps

630
00:32:15,360 --> 00:32:17,280
Speaker 12: you and I will be talking about in five, seven

631
00:32:17,480 --> 00:32:17,960
Speaker 12: or ten years.

632
00:32:18,680 --> 00:32:22,760
Speaker 4: What's been interesting this week in the context of AI,

633
00:32:23,000 --> 00:32:25,720
Speaker 4: whether it's US China relations, but there's also a context

634
00:32:25,800 --> 00:32:28,120
Speaker 4: more broadly of where the government plays with this.

635
00:32:28,360 --> 00:32:30,400
Speaker 6: We had or cause, the big announcement from.

636
00:32:30,400 --> 00:32:33,160
Speaker 4: Intel getting more subsidies to be able to be building

637
00:32:33,240 --> 00:32:35,240
Speaker 4: here in the United States, and I know that's something

638
00:32:35,280 --> 00:32:36,240
Speaker 4: that you're thinking a lot about.

639
00:32:36,280 --> 00:32:37,720
Speaker 6: In the context of climate.

640
00:32:37,440 --> 00:32:41,240
Speaker 4: Technology as well, we have money being pushed from the

641
00:32:41,320 --> 00:32:44,400
Speaker 4: EV perspective this week, regulation being pushed from an EV

642
00:32:44,520 --> 00:32:48,400
Speaker 4: perspective to really perhaps enhance electric vehicle manufacturing here in

643
00:32:48,440 --> 00:32:51,280
Speaker 4: the US. Can I when you're thinking about the opportunity

644
00:32:51,440 --> 00:32:55,040
Speaker 4: IRA or another way of investing in climate tech, does

645
00:32:55,080 --> 00:32:55,800
Speaker 4: that stick.

646
00:32:57,080 --> 00:32:57,680
Speaker 8: Absolutely?

647
00:32:57,840 --> 00:33:02,560
Speaker 12: I mean, you know, the government, the IRA has provided

648
00:33:02,600 --> 00:33:05,760
Speaker 12: a number of you know, carrots and sticks, predominantly carrots

649
00:33:06,440 --> 00:33:09,040
Speaker 12: that have tremendously expanded the market for some of our companies. So,

650
00:33:09,200 --> 00:33:14,120
Speaker 12: for example, having more punitive measures around methane emissions is

651
00:33:14,160 --> 00:33:16,520
Speaker 12: a is a real benefit to one of our company's, Orbio,

652
00:33:16,560 --> 00:33:21,280
Speaker 12: which is using satellite imagery to really pinpoint methane leaks

653
00:33:21,320 --> 00:33:25,320
Speaker 12: from specific facilities. You know, the incentives and the IRA

654
00:33:25,680 --> 00:33:31,080
Speaker 12: around you know, revenue or purchase. Government purchases of carbon

655
00:33:31,160 --> 00:33:34,480
Speaker 12: removal are also helping to mature that market. And we

656
00:33:34,560 --> 00:33:37,840
Speaker 12: have another company in southern California from a former SpaceX

657
00:33:37,880 --> 00:33:42,160
Speaker 12: engineer called Clarity that is doing carbon dioxide removal at uh,

658
00:33:42,560 --> 00:33:45,600
Speaker 12: you know, with lower energy intensity and usage and costs.

659
00:33:45,680 --> 00:33:47,600
Speaker 5: I'm sure because right at the top of your blog

660
00:33:47,680 --> 00:33:50,080
Speaker 5: post which I read this morning, you were talking about

661
00:33:50,120 --> 00:33:50,800
Speaker 5: the Chips Act.

662
00:33:51,240 --> 00:33:54,080
Speaker 8: Yeah, at lower down at the early stage. Is there

663
00:33:54,120 --> 00:33:56,960
Speaker 8: any benefit felt by the Chips Act in terms of

664
00:33:57,120 --> 00:33:58,080
Speaker 8: inflation Reduction Act?

665
00:33:58,200 --> 00:33:58,280
Speaker 1: Right?

666
00:33:58,280 --> 00:34:00,640
Speaker 12: Inflation reduction? That's right, I mean, there's there's there's obviously

667
00:34:00,720 --> 00:34:03,560
Speaker 12: benefits from both. But like if we're talking about you know,

668
00:34:04,440 --> 00:34:08,400
Speaker 12: a long term investment in you know, the United States

669
00:34:08,600 --> 00:34:14,279
Speaker 12: ability around manufacturing and deep tech, I think that's you know,

670
00:34:14,480 --> 00:34:17,239
Speaker 12: bringing in a lot of like tax rep you know,

671
00:34:17,360 --> 00:34:20,600
Speaker 12: tax credits and tax incentives around building facilities here in

672
00:34:20,680 --> 00:34:23,399
Speaker 12: this country. So for example, you know, to to really

673
00:34:23,520 --> 00:34:26,480
Speaker 12: get carbon removal to the next stage, we're going to

674
00:34:26,520 --> 00:34:29,600
Speaker 12: have to see facilities all over you know, the United States,

675
00:34:30,280 --> 00:34:33,719
Speaker 12: particularly in you know, in the Southwest where Clarity is

676
00:34:33,760 --> 00:34:35,960
Speaker 12: looking to do its first production facility and its first

677
00:34:35,960 --> 00:34:38,280
Speaker 12: facility as well. And that's going to create a tremendous

678
00:34:38,280 --> 00:34:40,160
Speaker 12: amount of jobs for all kinds of Americans.

679
00:34:40,600 --> 00:34:43,200
Speaker 5: Innationalist capital partner, can I cut look great to have

680
00:34:43,320 --> 00:34:44,840
Speaker 5: you here on set in San Francisco.

681
00:34:44,960 --> 00:34:45,200
Speaker 8: Thank you.

682
00:34:53,440 --> 00:34:54,839
Speaker 3: I love playing just there.

683
00:34:54,960 --> 00:34:56,799
Speaker 11: So this is one of the things that we all

684
00:34:56,920 --> 00:35:00,440
Speaker 11: have enabled me to do something that I wasn't able to.

685
00:35:00,840 --> 00:35:04,440
Speaker 12: Really do much the last few years, especially not like this.

686
00:35:06,040 --> 00:35:07,840
Speaker 3: I had to use like a mouth stick and suffer.

687
00:35:08,080 --> 00:35:11,160
Speaker 3: Now it's well, it's all being done with my brain.

688
00:35:12,320 --> 00:35:15,080
Speaker 4: Just part of a live stream with Neuralink's first brain

689
00:35:15,239 --> 00:35:19,040
Speaker 4: implant patient, showing a quadriplegic man who was able to

690
00:35:19,080 --> 00:35:21,440
Speaker 4: play video games and online.

691
00:35:21,120 --> 00:35:22,520
Speaker 6: Chess using just his mind.

692
00:35:22,840 --> 00:35:25,440
Speaker 4: Neuralink, of course, is a brain technology startup founded by

693
00:35:25,480 --> 00:35:28,919
Speaker 4: Elon musk Is. Implant allows a patient to use their.

694
00:35:28,920 --> 00:35:30,680
Speaker 6: Thoughts to control a computer.

695
00:35:31,440 --> 00:35:31,480
Speaker 7: Ed.

696
00:35:32,719 --> 00:35:35,160
Speaker 5: Bitcoin has peeled back more than ten percent from its

697
00:35:35,239 --> 00:35:37,160
Speaker 5: all time high and maybe headed for one of its

698
00:35:37,239 --> 00:35:40,160
Speaker 5: worst weeks of twenty twenty four. This is the appetite

699
00:35:40,560 --> 00:35:43,560
Speaker 5: the spot Bitcoin ETF seems to be slowing down. Big

700
00:35:43,600 --> 00:35:47,000
Speaker 5: Go CEO Mike Belshe joins us, Now that was the intro.

701
00:35:47,800 --> 00:35:50,200
Speaker 5: What do you think is happening right now? With Bitcoin.

702
00:35:50,480 --> 00:35:53,520
Speaker 13: Well, usually I do not like to predict price, but

703
00:35:53,640 --> 00:35:55,919
Speaker 13: I think we're at a very very good time. Of course,

704
00:35:55,920 --> 00:35:58,800
Speaker 13: there's some consolidation, as saying, I guess in the space

705
00:35:58,880 --> 00:36:01,560
Speaker 13: that hey, if you're not ready for my twenty percent drops,

706
00:36:01,560 --> 00:36:03,840
Speaker 13: you're certainly not ready for my six hundred percent increases.

707
00:36:04,719 --> 00:36:06,520
Speaker 2: But overall, what we're seeing some consolidation.

708
00:36:06,760 --> 00:36:09,040
Speaker 13: The ETFs just launched, we've seen tremendous run up in

709
00:36:09,080 --> 00:36:11,480
Speaker 13: a very short period of time. A little bit of

710
00:36:11,520 --> 00:36:14,560
Speaker 13: pullback is happening, but you know, all of the macro

711
00:36:14,640 --> 00:36:19,400
Speaker 13: climate remains extremely bullish for bitcoin, primarily due to what

712
00:36:19,480 --> 00:36:21,719
Speaker 13: people know about the long term just what we care

713
00:36:21,760 --> 00:36:25,959
Speaker 13: about most at bitco, which is look term macro looks

714
00:36:26,000 --> 00:36:27,879
Speaker 13: like we're still going to be very solid with having

715
00:36:27,920 --> 00:36:30,480
Speaker 13: a static supply of bitcoin being something that you can

716
00:36:30,560 --> 00:36:33,239
Speaker 13: count on that doesn't get eroded. And of course, you

717
00:36:33,280 --> 00:36:37,600
Speaker 13: know fiat currencies continuing to do massive changes with debt

718
00:36:37,840 --> 00:36:40,839
Speaker 13: and deficits and no sign of change for that front.

719
00:36:41,600 --> 00:36:42,040
Speaker 3: Bitcoin.

720
00:36:42,160 --> 00:36:44,200
Speaker 4: We've got the Harbing coming up as well, potentially another

721
00:36:44,680 --> 00:36:48,160
Speaker 4: underpinning of price. But who's been getting into these ETFs

722
00:36:48,160 --> 00:36:48,800
Speaker 4: and we've been able.

723
00:36:48,680 --> 00:36:49,560
Speaker 6: To manage flow his mine.

724
00:36:49,880 --> 00:36:50,719
Speaker 2: We have a little bit.

725
00:36:51,040 --> 00:36:53,640
Speaker 13: Actually, so far, I think it's been mostly the smaller

726
00:36:53,680 --> 00:36:58,000
Speaker 13: ticket sizes. So remember, institutions move pretty slowly, pretty glacially. Frankly,

727
00:36:58,680 --> 00:37:00,880
Speaker 13: I think we've seen a wave of retail here over

728
00:37:00,920 --> 00:37:03,160
Speaker 13: the last two and a half months. I think it's

729
00:37:03,200 --> 00:37:05,920
Speaker 13: getting a little bit bigger. But the institutions, you know,

730
00:37:06,000 --> 00:37:08,200
Speaker 13: we've seen some smaller hedge funds come in, Larger hedge

731
00:37:08,200 --> 00:37:11,719
Speaker 13: funds will come in. Pension funds are coming, endowments are

732
00:37:11,719 --> 00:37:15,200
Speaker 13: already here. So now that we have an ETF available,

733
00:37:15,239 --> 00:37:17,439
Speaker 13: which is the distribution channel, which makes it super easy

734
00:37:17,480 --> 00:37:20,000
Speaker 13: for everybody to participate. It takes a little bit of

735
00:37:20,040 --> 00:37:22,080
Speaker 13: time to go through investment committees, but I think that

736
00:37:22,360 --> 00:37:24,759
Speaker 13: we're starting to see that run up happen now all

737
00:37:24,800 --> 00:37:26,560
Speaker 13: through the summer at rhymes.

738
00:37:26,560 --> 00:37:28,040
Speaker 2: So you should say it eightyk by May.

739
00:37:29,040 --> 00:37:32,480
Speaker 8: In the moment the calendar its and the harving, what happens?

740
00:37:32,560 --> 00:37:33,040
Speaker 8: Do you think?

741
00:37:34,560 --> 00:37:34,600
Speaker 3: So?

742
00:37:34,719 --> 00:37:37,440
Speaker 13: The having is an interesting pattern that people look at,

743
00:37:37,960 --> 00:37:40,680
Speaker 13: but I think really the most interesting part is the

744
00:37:40,800 --> 00:37:44,680
Speaker 13: long term meaning of the having. So bitcoin has a

745
00:37:44,800 --> 00:37:47,719
Speaker 13: monetary policy which was set in motion back in two

746
00:37:47,760 --> 00:37:50,600
Speaker 13: thousand and nine, and it has remained completely unchanged since

747
00:37:50,640 --> 00:37:53,719
Speaker 13: that time. It's the longest standing unchanged monetary policy in

748
00:37:53,760 --> 00:37:56,680
Speaker 13: the history of mankind, and this having is a demonstration

749
00:37:57,160 --> 00:38:00,840
Speaker 13: that bitcoin has a solid commitment, unchangeable commitment to that policy,

750
00:38:00,840 --> 00:38:03,840
Speaker 13: which we'll keep going. So with the having the supply

751
00:38:04,040 --> 00:38:07,440
Speaker 13: decreases on a block by block basis, which means that

752
00:38:07,480 --> 00:38:09,880
Speaker 13: we see a lower rate of inflation. Some measure this

753
00:38:10,040 --> 00:38:12,400
Speaker 13: stock to flow and other measurements of how you compare

754
00:38:12,480 --> 00:38:13,280
Speaker 13: that to other assets?

755
00:38:13,360 --> 00:38:13,440
Speaker 7: Right?

756
00:38:13,480 --> 00:38:16,439
Speaker 2: How they but bitcoins in a very good stead is one.

757
00:38:16,320 --> 00:38:20,120
Speaker 13: Of the most static supply assets on the planet, him

758
00:38:20,160 --> 00:38:21,800
Speaker 13: will she It's been great to catch up with you.

759
00:38:22,000 --> 00:38:24,759
Speaker 4: Thank you so much bitco ceo. As we have seen,

760
00:38:24,840 --> 00:38:27,960
Speaker 4: of course, one of the worst weeks for bitcoin this year.

761
00:38:28,320 --> 00:38:30,560
Speaker 4: That does it for this though edition of BlueBag Technology.

762
00:38:30,640 --> 00:38:33,320
Speaker 5: Yet what a week has been. What an ends of

763
00:38:33,320 --> 00:38:35,200
Speaker 5: the week? Check out the podcast. So many of you

764
00:38:35,360 --> 00:38:38,520
Speaker 5: are listening to the podcast. The platforms are Apple, Spotify,

765
00:38:38,719 --> 00:38:41,239
Speaker 5: iHeart and of course we publish to all of our

766
00:38:41,280 --> 00:38:45,040
Speaker 5: own platforms here at Bloomberg from San Francisco and New

767
00:38:45,120 --> 00:38:45,640
Speaker 5: York City.

768
00:38:46,320 --> 00:38:48,000
Speaker 8: This is Bloomberg Technology