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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: From Mahard where Innovation, Money and power Collie in Silicon Valley, NBN.

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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 Hyde and Bloomberg's weld head quarters in New York.

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Speaker 5: I'm Ed Lodlow in San Francisco. This is Bloomberg Technology.

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Speaker 4: Coming up, we have an exclusive interview with the CEO

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Speaker 4: of Micron, Sanjay Mahotra, is going to be joining us

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Speaker 4: as shares surge to a record high. That's after the

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Speaker 4: company boosted its outlook on AI growth.

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Speaker 5: Plus, we push ahead to Reddit's long awaited IPO and

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Speaker 5: sit down with reddits COO Jen Wong later this hour.

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Speaker 4: And of course we go live to the Department of

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Speaker 4: Justice as they announ an antitrust lawsuit against Apple.

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Speaker 5: We're also thinking a lot about Micron. Shares of Micron

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Speaker 5: at a record high, biggest jump since twenty eleven. The

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Speaker 5: outlook for the fiscal third quarter a recovery and commoditized

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Speaker 5: d RAM prices, but also a ramp in the next

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Speaker 5: generation HBM three E that is the memory that supports

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Speaker 5: the GPUs in training AI that is the conversation that

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Speaker 5: we'll have. Let's dive right into microns earnings with CEO

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Speaker 5: Sanjay Morotra as Sanja, good morning to you, and that's

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Speaker 5: how i'd frame it. Let's get right to the outlook

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Speaker 5: for the fiscal third way up the factors for us.

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Speaker 5: Was this all about the recovery in d RAM traditionally

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Speaker 5: commoditized or is this more about the ramp up in

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Speaker 5: HBM THREEE that is going in support of things like

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Speaker 5: the h two hundred from Nvidia.

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Speaker 1: First of all, thank you Caroline and ED for having

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Speaker 1: me on the show here. Our recovery is really driven

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Speaker 1: by a demand related to AI with tight supply and

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Speaker 1: actually demand that is strong across most of our end markets,

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Speaker 1: particularly data centered driven demand. And Micron has a strong

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Speaker 1: portfolio of products. Very excited about our latest offering of

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Speaker 1: HV and three E that you refer to earlier. We

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Speaker 1: have just begun shipments of this and we see strong

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Speaker 1: growth in the several quarters that are ahead of us.

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Speaker 1: And supply is tight, leading edge nodes in particular, and

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Speaker 1: and tight supply that's leading to price increases as well.

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Speaker 1: So as we look ahead at twenty twenty four, our

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Speaker 1: year of recovery. We see increasing prices driven by the

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Speaker 1: demand supply fundamentals, and we look at twenty twenty five

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Speaker 1: to be a record year for Micron's revenue with significantly

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Speaker 1: improved profitability as well.

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Speaker 4: Twenty twenty five supply also mostly already allocated. You sold

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Speaker 4: out on twenty twenty four. Say let's dig in on

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Speaker 4: the high bandwidth memory because was it Jason Wyang over

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Speaker 4: at in video calling this a technology miracle? Will it

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Speaker 4: not get commoditized? Will prices remain elevated?

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Speaker 1: First of all, our sr HBM product that is sold

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Speaker 1: out for calendar year twenty four, and a vast majority

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Speaker 1: of the supply for our twenty twenty five is allocated

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Speaker 1: as well. This is a critical product. HBM three E

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Speaker 1: is in very very early stages here and it's key

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Speaker 1: enabler of what AI platforms, generative AI platforms are able

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Speaker 1: to do. Just think about it. I mean the latest

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Speaker 1: Blackwell platform that has been announced. It has sixty four

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Speaker 1: die of memory in it, so tremendous amount of silicon.

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Speaker 1: HBM is growing fast, expected to be about fifteen percent

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Speaker 1: high teens, mid to high teens of the industry revenue

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Speaker 1: over the course of next years compared to being just

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Speaker 1: half of that last year. And as you look ahead

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Speaker 1: at the new platforms being announced Nvidia earlier this week,

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Speaker 1: Broadcom yesterday, they're all placing tremendous emphasis on the performance

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Speaker 1: and the power of HPM memory. As AI becomes bigger,

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Speaker 1: data becomes bigger, data lives in the products that Micron

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Speaker 1: makes for AI applications, lives in the kind of products

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Speaker 1: such as HPM three E, but high density DIM modules

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Speaker 1: as well as other products that Micron makes DDD ARE

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Speaker 1: five memory and data center SSDs. So AI is really

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Speaker 1: driving tremendous growth trajectory. HBM THREEE is absolutely going to

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Speaker 1: be critical. This is in very early innings and you know,

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Speaker 1: even if there are any perturbations in supply, they will

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Speaker 1: get absorbed over time. And what's important to understand is

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Speaker 1: because HPM THREEE product is extremely silicon intensive across the industr,

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Speaker 1: it is really leaving not enough supply for non HBM

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Speaker 1: products and those are in tight supply, and that's what

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Speaker 1: is driving tremendous strength in terms of demand supply fundamentals

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Speaker 1: in pricing trajectory for memory.

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Speaker 5: And the question is, Sanjay, how do you keep up

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Speaker 5: right HBM THREEE running at five point two gigabits per second.

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Speaker 5: You've already mentioned blackwell, you're going to have to bring

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Speaker 5: that next generation HBM nine gigabits per second faster. Just

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Speaker 5: walk us through the real term ramp of your products,

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Speaker 5: getting them into the real world and when they show

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Speaker 5: up in your financials in the near and medium term.

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Speaker 1: Well, we talked about yesterday in our earnings call that

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Speaker 1: we have begun shipments of HBM three E product. It's

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Speaker 1: an industry leading product. It has the best performance in

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Speaker 1: the lowest power in the industry, which you know for

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Speaker 1: data center applications, power is critical. Thirty percent better power

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Speaker 1: for our HBM three E product. So we have really

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Speaker 1: long legs in this HP and three E product for

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Speaker 1: foreseeable future here and HPM three E has begun shipments,

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Speaker 1: and we mentioned in the call yesterday that it will

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Speaker 1: be a creative to our gross margins and we'll have

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Speaker 1: several hundred million dollars of revenue of this HPM three

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Speaker 1: E product in our fiscal year which will end in

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Speaker 1: August timeframe. And of course we look at significant growth

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Speaker 1: ahead for HPM three E as well. Our production has begun.

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Speaker 1: We are extremely focused on continuing to ramp this product.

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Speaker 1: Our target is to get our share in HBM three

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Speaker 1: E equivalent to our DRAM industry share, and we're going

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Speaker 1: to remain extremely disciplined key will be absolutely managing the

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Speaker 1: supply and demand fundamentals overall for the DRAM industry. So

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Speaker 1: we look at strong growth ahead for our HPM three E.

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Speaker 1: Keep in mind that HBM is expected to have a

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Speaker 1: KAGHER greater than fifty percent over the course of next

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Speaker 1: a few years in terms of bit growth that HPM

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Speaker 1: will be driving. Of course, it will be all the

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Speaker 1: GENAI applications that we'll be driving this And I just

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Speaker 1: want to add here that of course data center is

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Speaker 1: a big driver of our growth. We are shifting our

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Speaker 1: business more toward data center given the demand and the

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Speaker 1: profitability profile of that part of the market. We are

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Speaker 1: doing that with our DTA and products as well as

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Speaker 1: with our SSDs. But just want to point out that

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Speaker 1: other markets such as smartphones and PCs, they too are

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Speaker 1: implementing AI enabled devices and you'll start seeing them coming

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Speaker 1: out from later this year, and of course twenty twenty

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Speaker 1: five will be the first full year of all these

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Speaker 1: devices on the edge, such as smart AI enabled smartphones

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Speaker 1: and PCs. They take much higher memory content than their

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Speaker 1: prior generation devices. You're really, we're exciting about the opportunities

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Speaker 1: for that AI enables for US enables for memory, which

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Speaker 1: is at the heart of AI revolution in terms of

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Speaker 1: from data center all the way to the edge.

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Speaker 4: Going back though, to this high bandwidth memory and going

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Speaker 4: back to that market share that you say you want

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Speaker 4: to own, can you articulate exactly what that share is

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Speaker 4: going to be for our audience right now when we

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Speaker 4: have Heinex Samsung likely to.

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Speaker 6: Be unveiling their products at the first half of this year.

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Speaker 1: Our share in DAM today in the industry is approximately

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Speaker 1: twenty three percent, and we are targeting that our HBM

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Speaker 1: share would be in line with that DRAM industry share.

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Speaker 1: Of course, it will be ramping gradually over time. Sometime

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Speaker 1: in twenty twenty five if we expect to be getting

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Speaker 1: to our shared in HBM equal in to DM share.

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Speaker 1: It's a product that has greater profitability and as we said,

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Speaker 1: it really will be a driver of our revenue and

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Speaker 1: profit growth along with the rest of the market that

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Speaker 1: has strengthening fundamentals well for a bloom bag television right

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Speaker 1: and let me just point out the most important thing

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Speaker 1: is that our product has leadership specs, and that's why

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Speaker 1: it's getting a strong customer pull. Leadership products. Again in

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Speaker 1: terms of performance, bandwidth being about ten percent better than

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Speaker 1: other competitive products, power being thirty percent lower. Data centers

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Speaker 1: today take up about three percent of the world's energy

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Speaker 1: over the course of next several years, expected to continue

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Speaker 1: to increase, getting to closer to high single digit percentage.

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Speaker 1: That's where memory becomes extremely important in making sure that

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Speaker 1: these accelerators for Jenai are running lower power, low power memory.

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Speaker 1: Our thirty percent lower power solution is extremely attractive to

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Speaker 1: our customers.

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Speaker 5: Sanjay, for our Bloomberg television and radio audience worldwide, you

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Speaker 5: can point out a lot of things. We have a

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Speaker 5: lot of questions for you to bear with us. Let's

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Speaker 5: go back to on device because you clearly want to

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Speaker 5: talk about that. We talk about on device a lot

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Speaker 5: on this program, the smartphone and PC context. You are

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Speaker 5: saying that there is a tangible benefit that you're seeing

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Speaker 5: in orders for that, but.

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Speaker 7: Is that happening right now?

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Speaker 5: There is a lot of skepticism that on device processing

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Speaker 5: of llms and generative AI tools is somewhere away. Are

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Speaker 5: you telling us that this is material now or you're

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Speaker 5: predicting that it's coming soon.

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Speaker 1: Well, earlier this year you saw Samsung S twenty four

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Speaker 1: getting announced at Mobile World Congress, on it announced its

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Speaker 1: Magic six Pro. And these are great examples where AI

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Speaker 1: is being implemented, great examples of influencing on the edge.

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Speaker 1: AI is being implemented, that's intent based, and that's really

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Speaker 1: going to drive tremendous opportunity. Of course, these kind of

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Speaker 1: high end next gen AI capabilities and PCs and smartphones

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Speaker 1: will start getting to the marketplace later this year, twenty

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Speaker 1: twenty five will become the first full year. Over the

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Speaker 1: course of next few years, next few short years, we

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Speaker 1: would see that AI enabled devices will be representing let's

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Speaker 1: say about a third of smartphones and PC markets, and

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Speaker 1: they take much more content anywhere from forty percent two

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Speaker 1: hundred percent more content in flagship AI enabled PCs and

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Speaker 1: smartphones versus flagship AI in PC devices today, Sanjai, we've

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Speaker 1: got flagship smartphone and PC devices.

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Speaker 4: Today, We've got a couple more key questions. We're going

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Speaker 4: to keep it tight, fee, Sanjay, because we have been

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Speaker 4: thinking about the CHIPSAC, We've been thinking about Intel getting

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Speaker 4: that money. We've been thinking about you still building out

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Speaker 4: in China and in India. Will you still be committed

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Speaker 4: to putting money into Boise, into New York as well?

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Speaker 4: Are you going to get the money from the government.

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Speaker 1: Well, we'll respeak to the chips ACKed and are previously

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Speaker 1: announced plans for leading edge memory manufacturing in Boise and

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Speaker 1: in the Syracuse area. Our application for chips ACT is

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Speaker 1: underprocessing with the chips Program Office making good progress there.

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Speaker 1: Of course, we will make the announcements when that process

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Speaker 1: is completed. Important thing is that chips ACT enables us

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Speaker 1: to bring with CHIPSACKED grants sufficient level of CHIPSACK grants,

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Speaker 1: investment tax credits, and local state government support. It helps

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Speaker 1: bridge the cost gap with Asia operations. So it helps

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Speaker 1: us bring leading edge memory manufacturing into semiconductors and of

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Speaker 1: course that creates many jobs. It supports economic as well

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Speaker 1: as national security, and memory is pivotal. We just talked

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Speaker 1: about how pivotal memory is to AI applications. So think

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Speaker 1: about it. Today, only two percent of world's memory total,

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Speaker 1: world's memory production is here in the US. Of course,

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Speaker 1: it's all by micron at our facility in Manassas Virginia.

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Speaker 7: With chipsec support.

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Speaker 1: As we expand our leading edge memory manufacturing in Boise

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Speaker 1: and Syracuse next decade, Sometime in next decade, we'll be

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Speaker 1: able to get to ten percent over ten percent of

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Speaker 1: world's leading edge memory production here in the US. And

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Speaker 1: that's really Sunji significantly moving the needle, and Micron of

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Speaker 1: course is committed to.

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Speaker 5: That, Sanjay, We're running out of time here. Bloomberg's reported

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Speaker 5: that the US is considering restricting one of your Chinese rivals, CEXMT.

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Speaker 5: My understanding is that Micron has been in support of that.

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Speaker 5: Could you just outline Micron's position on the US restricting CXMT.

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Speaker 1: Look, the governments make their own decision and we are

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Speaker 1: not going to speculate or speak on behalf of any

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Speaker 1: of the actions. What we can tell you is that,

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Speaker 1: of course China is an important market for US, just

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Speaker 1: like China is an important market for the entire semiconductor industry,

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Speaker 1: and we are veil engaged with the customer ecosystem there

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Speaker 1: in terms of bringing value of our leading edge products

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Speaker 1: in memory and storage, helping them drive their innovation road maps.

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Speaker 4: We want to thank you so much for your time

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Speaker 4: today walking us through your numbers through the industry with

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Speaker 4: which is growing at such pace. Micron CEO Sanjay Erroltra,

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Speaker 4: thank you. Now turning our attention to the Department of

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Speaker 4: Justice holding a key press conference as they announce their

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Speaker 4: antitrust suit against Apple, which has been five years in

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Speaker 4: the making. We just want to be dipping in and.

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Speaker 6: Bringing you some of those headlines. Of course, Merrit Garland.

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Speaker 4: The Attorney General, saying that Apple has monopoly power in

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Speaker 4: the smartphone market. He's also been articulating that Apple has

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Speaker 4: maintained power via exclusionary behavior at the moment, so to

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Speaker 4: be turning our attention listening in to that press conference

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Speaker 4: for a moment today.

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Speaker 8: The Department alleges that Apple, one of the world's largest

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Speaker 8: tech companies, cross the line from rigorous competition to anti

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Speaker 8: competitive exclusion, unlawfully maintaining a monopoly in violation of the

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Speaker 8: Sherman Act. The complaint makes clear that for years Apple

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Speaker 8: has tightened its grip on the smartphone market.

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Speaker 6: It has done so not through.

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Speaker 8: Product improvements, but by maintaining a chokehold on competition, locking

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Speaker 8: its customers in to the iPhone while locking its competitors

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Speaker 8: out of the market. As a result, and, as the

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Speaker 8: complaint details, Apple has gone from revolutionizing the smartphone market

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Speaker 8: to stalling its advancement. This shift has smothered an entire industry,

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Speaker 8: from users to app developers to the next generation of innovator.

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Speaker 8: Apple's anti competitive conduct must stop. Sixteen other Attorneys General

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Speaker 8: agree and have joined us in bringing this lawsuit against Apple.

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Speaker 6: I want to thank the women and the.

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Speaker 8: Men of the Anti Trust Division for their commitment to

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Speaker 8: promoting competition and protecting consumers and workers in all of

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Speaker 8: their work, and I want to thank Assistant Attorney General

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Speaker 8: Canter for his leadership. Their work makes clear that no manual.

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Speaker 4: Has how fast the Deputy Attorney General LA speaking Lisa Monaco.

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Speaker 4: But meanwhile, there's more breaking news, all focused in on Apple.

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Speaker 4: I just want to bring you the headlines that Apple

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Speaker 4: and Google are likely to be hit by the first investigations,

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Speaker 4: the first probes under the EU Digital Law. So of

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Speaker 4: course there's the DMA which came into force just earlier

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Speaker 4: this month, And of course there has been a keen

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Speaker 4: eye on some of these labeled key gatekeepers as the

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Speaker 4: EU singles out big tech, Apple and Google among them.

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Speaker 4: The Digital Markets Act investigation could pay the way for fines,

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Speaker 4: some big fines. Meta is also expected to be facing

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Speaker 4: some scrutiny in the EU's big tech clampdown. So much

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Speaker 4: to discuss from EU, and indeed, what's happening right here

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Speaker 4: with of course, the Department of Justice and sixteen attorneys general.

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Speaker 4: Let's bring in bloombergs Ana Edjuton and anaag Rana for

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Speaker 4: more on this. Anna, I want to begin with you,

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Speaker 4: and let's start with what has been the culmination of

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Speaker 4: a five year investigation. The key takeaways is to where

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Speaker 4: exactly Apple has been monopolistic and shutting out others in

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Speaker 4: the market.

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Speaker 9: Yeah, so we have been expecting this complaint for a

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Speaker 9: long time. It started in twenty nineteen under the trub administration.

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Speaker 9: And we see how Jonathan Cancer, the Assistan Attorney General

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Speaker 9: for Anti trust, has really tried to tell a narrative

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Speaker 9: with this complaint. He's really tried to not just lay

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Speaker 9: out the facts of what he alleges as anti competitive

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Speaker 9: behavior by Apple, but tell it in a compelling way

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Speaker 9: so that it's not just being decided in a court

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Speaker 9: of law, but it's also compelling to normal consumers who

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Speaker 9: you know, love their iPhones, love their Apple products. They

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Speaker 9: can look at this complaint and see that this is

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Speaker 9: behavior that's in some cases causing them higher prices that

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Speaker 9: could give them less choice. So that's really the goal

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Speaker 9: of this complaint that you know, could also help its

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Speaker 9: chases in the court of law.

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Speaker 5: Let me bring in Bloomberg Intelligence senior analysts and rag

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Speaker 5: Rana an Arag. I'm looking at the shares with down

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Speaker 5: three point four percent the low of the session. That

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Speaker 5: decline is three point eight percent, put Apple on track

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Speaker 5: for its biggest decline since August of last year.

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Speaker 7: You and I have talked about this for years.

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Speaker 5: Is the markets finally starting to price in the antitrust

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Speaker 5: threat that Apple is facing?

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Speaker 2: I think, as you know, products slow down antitrust risks.

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Speaker 2: I mean, Apple doesn't have much going on right now,

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Speaker 2: so it's going to be interesting to see what they

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Speaker 2: pull out in June in terms of anything, JENNYI because

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Speaker 2: other than that, I mean, it's going to be a

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Speaker 2: very gloomy year for them in terms of sales growth.

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Speaker 4: And I go want to follow up on that because

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Speaker 4: this isn't just the US with its anti trust concerns.

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Speaker 4: It's the EU as well with that and Google being

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Speaker 4: hit potentially by the Digital Markets Act which come into force. Ultimately,

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Speaker 4: Apple has at the edge has already been trying to

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Speaker 4: change some of its business model, trying to appease with

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Speaker 4: whether or not it's reducing certain payments that you're making

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Speaker 4: for the app store, but it seems to be begging

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Speaker 4: from Peter to pay Paul. How much do you think

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Speaker 4: Apple can change its business model without impacting its margins

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Speaker 4: too much?

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Speaker 2: Yeah, I think the services business or the app store

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Speaker 2: business will see some depression at least in the near dum.

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Speaker 5: And let's get back to this DOJ situation. I think

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Speaker 5: it's worth for you re explaining to audience the basics here.

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Speaker 5: The DOJ has been looking at Apple for like five years.

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Speaker 5: It's the third time in a decade that they filed

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Speaker 5: a suit. What are the specific allegations here?

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Speaker 9: This really focuses on the iPhone and the way the

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Speaker 9: iPhone business runs and acts as a kind of moat

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Speaker 9: around around the business. As a long suffering Android user

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Speaker 9: who's always the green bubble in the family group chat,

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Speaker 9: you know, you can see how there are certain things

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Speaker 9: that you benefit iPhone users and being interoperable with other

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Speaker 9: Apple devices. So that's really the behavior that this complaint

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Speaker 9: lays out, and it's interesting that Biden's anti trust enforcers

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Speaker 9: came in kind of pushing the balance of anti trust

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Speaker 9: law and wanting to really look at the behavior of

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Speaker 9: these big American especially tech companies. But when it comes

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Speaker 9: down to this complaint, the harm that is really being

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Speaker 9: laid out is consumer prices, which of course is classic

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Speaker 9: anti trust. So there's an interesting balance between pushing anti

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Speaker 9: trust law as far as it will go and really

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Speaker 9: sticking to the arguments that they think will be successful

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Speaker 9: in court.

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Speaker 4: Anna, As you mentioned, this has been long anticipated and

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Speaker 4: has been going on for a long time five years.

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Speaker 4: It is under President Trump that this first investigation began.

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Speaker 4: It's the third time, in fact, in fourteen years that

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Speaker 4: Apple has been focused on in this anti trust way

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Speaker 4: from the DOJ. How quickly are we likely to see

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Speaker 4: any real actions taken, any real implication in response to Apples.

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Speaker 9: Well, it's interesting that they file the case in federal

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Speaker 9: court in New Jersey, so we'll learn more about why

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Speaker 9: that was the case, but we know they do want

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Speaker 9: to move quickly on this. If the Department of Justice

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Speaker 9: has been a little frustrated with how slow their case

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Speaker 9: against Google has gone. So the Justice Department also has

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Speaker 9: more targets to finish.

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Speaker 6: Up the rest of this year.

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Speaker 9: They're working on another case against Google, so they have

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Speaker 9: high ambitions. They want to take big swings, and Biden's

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Speaker 9: first term is coming to an end, so there's definitely

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Speaker 9: a big ambitions and limited resources and time to check

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Speaker 9: all of those off.

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Speaker 5: Anna Rag, you really see a threat of this getting

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Speaker 5: to consume as a window to jump to Android from iOS?

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Speaker 2: Oh No, I don't think that's going to be the case, frankly,

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Speaker 2: because those things are extremely sticky from that point. I mean,

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Speaker 2: I don't think one bubble is going to make a

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Speaker 2: difference for people to jump from the other. Apple's really

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Speaker 2: loyal customer base. What I'm concerned about is, you know,

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Speaker 2: whether they can charge for the app store in the

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Speaker 2: same frame book as they were before. I think that's

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Speaker 2: going to be the bigger outcome in our view, rather

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Speaker 2: than anything else.

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Speaker 4: And so a just interesting from the perspective that we

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Speaker 4: are seeing this share price reaction down some three percent.

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Speaker 4: That's not nothing for the second most valuable company out there.

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Speaker 4: So do you think more weakness has to be factored in?

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Speaker 4: Even though they have a very loyal base that perhaps

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Speaker 4: might not be shifting to an Android or competitor on

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Speaker 4: any changes to business models.

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Speaker 2: Yeah, I mean, as I said, services business is extremely

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Speaker 2: important for them, both in terms of margin and diversification.

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Speaker 2: If you compress those c it is going to have

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Speaker 2: an impact on their boath, their top line as well

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Speaker 2: as the bottom line. So this is a new overhang

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Speaker 2: on the stock that you know, tops.

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Speaker 7: Up what's happening in Europe.

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Speaker 2: So there isn't much going on for Apple this year.

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Speaker 2: You know, sales are growing, sales are not growing in

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Speaker 2: terms of the products, and now the service is under pressure.

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Speaker 2: So you know, that's really what's happening.

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Speaker 5: Here in our view and behind every doc move and

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Speaker 5: appleys down three point three percent, as I said at

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Speaker 5: the session, low three point eight percent. There are some people,

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Speaker 5: some human beings. Tell me about this DOJ team that

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Speaker 5: was up on the stage one moment ago that are

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Speaker 5: leading this anti trust initiative against Apple.

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Speaker 6: Yeah, that's a great question.

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Speaker 9: I mean, Jonathan Cancer came into the anti trust division

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Speaker 9: being labeled you know, Google's foe.

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Speaker 6: We knew that. You know, he had his.

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Speaker 9: Site set on big tech and that's part of this

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Speaker 9: kind of neo Brandisian school of anti trust that we

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Speaker 9: see also at the FTC with Lena Khan, the commissioner there,

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Speaker 9: So you know, they've in some cases really worked together

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Speaker 9: to reshape the understanding of anti trust law and really

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Speaker 9: try to show how corporate behavior, even corporations that are

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Speaker 9: well loved that produce products that people really enjoy, their

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Speaker 9: behavior results in higher prices for consumers. So you know,

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Speaker 9: we see this also from the app developers like Spotify,

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Speaker 9: Match Sonos who have complained for years that Apple's behavior

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Speaker 9: puts them at a disadvantage competing with products like Apple Music.

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Speaker 9: So that's all a part of this equation and is

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Speaker 9: all going to be tried now in a court of

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Speaker 9: law and we'll we'll see how it comes out.

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Speaker 4: I want to just return to you, Ana Rag for

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Speaker 4: a moment and just think about ultimately where Apple has

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Speaker 4: to stay from now in terms of its oval prioritizations.

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Speaker 4: As you said, there's a worry about general to AI

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Speaker 4: and being behind the curve there, will that stymey any

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Speaker 4: relationship that it's trying to be brokering with Google. Will

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Speaker 4: we still see sort of the ongoing build up of

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Speaker 4: Apple and its presence in general to AI and still

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Speaker 4: trying to refocus the business when it is having to

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Speaker 4: be distracted in this way.

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Speaker 2: Yeah, I think that's going to be the biggest thing

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Speaker 2: that we find out over the next few months. If

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Speaker 2: they are able to pull off this, you know, you

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Speaker 2: could say deal with Google. It's going to be symbiotic

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Speaker 2: and beneficial for both the companies and that has the

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Speaker 2: potential to improve iPhone sales in the second half of

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Speaker 2: this year. You know, botting that there isn't much going

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Speaker 2: on Apple at this point, both in terms of current

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Speaker 2: status as well as you know the outlook for second half.

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Speaker 4: Anna Agrana, fantastic analysis. Thank you for being there at

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Speaker 4: the moment. Rerumkexana Egerton as well with a breakdown of

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Speaker 4: this anti trust move and the years that it's taken

437
00:25:16,080 --> 00:25:16,560
Speaker 4: to get here.

438
00:25:23,400 --> 00:25:27,800
Speaker 3: Apple actively encourages banks, merchants, and other parties to participate

439
00:25:27,840 --> 00:25:32,439
Speaker 3: in Apple Wallet, but it simultaneously exerts its monopoly power

440
00:25:32,800 --> 00:25:37,360
Speaker 3: to block these same partners from developing alternative payment products

441
00:25:37,359 --> 00:25:39,600
Speaker 3: and services for iPhone users.

442
00:25:41,320 --> 00:25:43,879
Speaker 4: Eric Garland, Attorney General, that is, as the DOJ in

443
00:25:43,960 --> 00:25:47,720
Speaker 4: sixteen attorneys general weigh in bringing enforcement to Apple at

444
00:25:47,720 --> 00:25:51,520
Speaker 4: the moment, announcing an antitrust lawsuit against Apple, and of

445
00:25:51,560 --> 00:25:53,720
Speaker 4: course ed this is as we see the share price

446
00:25:53,800 --> 00:25:56,560
Speaker 4: really being not by this off by more than three percent.

447
00:25:56,640 --> 00:25:59,000
Speaker 4: It is the second most valuable company out there, So

448
00:25:59,040 --> 00:26:01,680
Speaker 4: that knocks some twenty ninety two billion off of its

449
00:26:01,920 --> 00:26:05,000
Speaker 4: market capitalization overall on the day training at the lowest

450
00:26:05,040 --> 00:26:07,159
Speaker 4: that we've seen since the start of the year. And

451
00:26:07,240 --> 00:26:09,320
Speaker 4: all of this ultimately should have been expected.

452
00:26:09,359 --> 00:26:11,880
Speaker 6: It's a five year investigation, That's.

453
00:26:11,720 --> 00:26:12,760
Speaker 7: The observation I've made.

454
00:26:12,760 --> 00:26:14,560
Speaker 5: Though, So at the session low, the stock was down

455
00:26:14,560 --> 00:26:17,280
Speaker 5: three point eight percent, putting Apple on track for its

456
00:26:17,320 --> 00:26:20,640
Speaker 5: biggest decline since August last year. Bloomberg reported all these

457
00:26:20,680 --> 00:26:24,080
Speaker 5: details last night, and yet when the press conference came

458
00:26:24,119 --> 00:26:27,040
Speaker 5: and the official confirmation came, the stock continued to slide.

459
00:26:27,040 --> 00:26:28,679
Speaker 5: And if you go on your Bloomberg terminal look at

460
00:26:28,680 --> 00:26:29,359
Speaker 5: the street wrap.

461
00:26:29,720 --> 00:26:31,160
Speaker 7: There is an acknowledgment of.

462
00:26:31,280 --> 00:26:33,880
Speaker 5: A regulatory overhang, which every time you and I talk

463
00:26:33,880 --> 00:26:36,560
Speaker 5: about anti trust over the last few years, it never

464
00:26:36,600 --> 00:26:37,600
Speaker 5: shows up in the stock.

465
00:26:37,960 --> 00:26:40,480
Speaker 4: Yeah, and then you have to add in on that

466
00:26:40,480 --> 00:26:42,760
Speaker 4: the other bloomberg scoop that came within this time of

467
00:26:42,800 --> 00:26:45,160
Speaker 4: the fact that the EU is now weighing a full

468
00:26:45,160 --> 00:26:48,080
Speaker 4: blown investigation on its part as well into Apple and

469
00:26:48,160 --> 00:26:50,760
Speaker 4: Google when it comes to the digital markets app. So

470
00:26:50,880 --> 00:26:53,600
Speaker 4: this is an antitrust global fixation on Apple right now.

471
00:26:54,280 --> 00:26:54,560
Speaker 7: Yeah.

472
00:26:54,960 --> 00:26:57,320
Speaker 5: The one point on that EU reporting is that I

473
00:26:57,320 --> 00:26:59,040
Speaker 5: think the EU is looking at a lot of people

474
00:26:59,200 --> 00:27:03,040
Speaker 5: alphabet and all, so we're reporting meta and that eventually

475
00:27:03,080 --> 00:27:05,000
Speaker 5: that could lead to fine. So that is a story

476
00:27:05,040 --> 00:27:06,960
Speaker 5: out of Europe that will continue to watch. There is

477
00:27:07,000 --> 00:27:09,880
Speaker 5: another big story happening we may have forgotten. Let's turn

478
00:27:09,920 --> 00:27:14,320
Speaker 5: to Reddit listing day. Here's some video of them ringing

479
00:27:14,320 --> 00:27:17,080
Speaker 5: the bell at the NYC earlier. Have a great listener,

480
00:27:26,280 --> 00:27:28,400
Speaker 5: I would say that, I say them, I don't think

481
00:27:28,440 --> 00:27:30,560
Speaker 5: that's Steve Huffman in a mascot.

482
00:27:30,119 --> 00:27:32,480
Speaker 7: Suit, but I'm sure he was there.

483
00:27:33,160 --> 00:27:35,879
Speaker 5: That was Reddit ringing the ny Stock Exchange bell earlier

484
00:27:35,880 --> 00:27:37,760
Speaker 5: this morning. Let's get some of the key numbers with

485
00:27:37,840 --> 00:27:40,840
Speaker 5: Bloombo's Katie Ruth, and we have an indication of where

486
00:27:40,880 --> 00:27:41,720
Speaker 5: Reddit might open.

487
00:27:42,560 --> 00:27:45,280
Speaker 10: Yeah, so we don't know exactly where it's going to

488
00:27:45,320 --> 00:27:48,240
Speaker 10: open just yet, but last night it priced at thirty

489
00:27:48,280 --> 00:27:50,200
Speaker 10: four dollars a share at the top of the range,

490
00:27:50,240 --> 00:27:55,760
Speaker 10: which was, you know, a positive indication based on the

491
00:27:55,840 --> 00:27:59,560
Speaker 10: road show and showing where you know, the street thinks

492
00:27:59,560 --> 00:28:02,159
Speaker 10: it's going to open at you know, right now. What

493
00:28:02,200 --> 00:28:04,880
Speaker 10: they're doing is they're sorting out the book. They're figuring

494
00:28:04,920 --> 00:28:09,080
Speaker 10: out precisely, you know, for the very very first trade

495
00:28:09,119 --> 00:28:11,800
Speaker 10: to the public where it should trade at, because the

496
00:28:11,800 --> 00:28:16,359
Speaker 10: IPO is actually just for insiders, and so a lot

497
00:28:16,480 --> 00:28:19,200
Speaker 10: of ours are watching Reddit. There's been a dearth of

498
00:28:19,440 --> 00:28:22,439
Speaker 10: tech IPOs in recent years. I mean, twenty twenty one

499
00:28:22,560 --> 00:28:24,399
Speaker 10: is a very active year with over one hundred, and

500
00:28:24,440 --> 00:28:26,639
Speaker 10: then in twenty twenty two there were nine, and then

501
00:28:26,720 --> 00:28:30,280
Speaker 10: last year we only saw instacart, klaviow an arm, you

502
00:28:30,320 --> 00:28:34,159
Speaker 10: know for the big ones. And this week with Reddit

503
00:28:34,160 --> 00:28:38,840
Speaker 10: in Astera, people are hoping might finally open that tech

504
00:28:38,840 --> 00:28:39,560
Speaker 10: ipo window.

505
00:28:40,360 --> 00:28:42,600
Speaker 5: Just looking at this headline crossing the Bloomberg terminal that

506
00:28:42,640 --> 00:28:46,920
Speaker 5: Reddit shares indicated to open between forty two and forty

507
00:28:46,920 --> 00:28:50,400
Speaker 5: six dollars a share, clearly a premium on that thirty

508
00:28:50,400 --> 00:28:52,280
Speaker 5: four dollar IPO pricing.

509
00:28:52,600 --> 00:28:53,880
Speaker 7: There is interest in this one, right.

510
00:28:53,920 --> 00:28:55,840
Speaker 5: It's been a long road because we thought they might

511
00:28:55,880 --> 00:28:58,240
Speaker 5: go twenty twenty one, as you said, was an excellent

512
00:28:58,360 --> 00:29:00,000
Speaker 5: year for US IPOs, and they didn't.

513
00:29:00,320 --> 00:29:02,680
Speaker 10: Yeah, they announced in twenty twenty one they had filed

514
00:29:02,680 --> 00:29:04,800
Speaker 10: for IPO in twenty twenty two. I broke that they

515
00:29:04,840 --> 00:29:07,120
Speaker 10: had hired bankers, and they did. It just took a

516
00:29:07,120 --> 00:29:09,920
Speaker 10: little while for them to actually do it. But you know,

517
00:29:10,080 --> 00:29:12,560
Speaker 10: I think it's it's a matter of are people interested

518
00:29:12,640 --> 00:29:15,520
Speaker 10: at what price? You know, they priced at something that

519
00:29:15,640 --> 00:29:18,040
Speaker 10: valued them above six billion, but they were last valued

520
00:29:18,080 --> 00:29:21,320
Speaker 10: at ten billion in twenty twenty one, and so yes,

521
00:29:21,640 --> 00:29:24,520
Speaker 10: there is interest in Reddit at this price, it looks like,

522
00:29:24,640 --> 00:29:27,600
Speaker 10: especially if it's popping, But it's a matter of, you know,

523
00:29:27,680 --> 00:29:29,960
Speaker 10: will it will it be able to sustain that price?

524
00:29:30,040 --> 00:29:32,600
Speaker 10: Will it be able to achieve the price it had

525
00:29:32,640 --> 00:29:35,240
Speaker 10: in twenty twenty one at market highs at.

526
00:29:35,200 --> 00:29:37,160
Speaker 4: My named seeing a blue bug intelligence saying, yes, a

527
00:29:37,200 --> 00:29:39,720
Speaker 4: ten billion valuation is really where Reddit should be, Katie.

528
00:29:39,760 --> 00:29:42,000
Speaker 4: But I'm interested in the allocation and where it went

529
00:29:42,040 --> 00:29:44,840
Speaker 4: when it was priced. To course, money flowing into institutional hands,

530
00:29:44,920 --> 00:29:48,840
Speaker 4: but also into the retail investor and into the redditors themselves.

531
00:29:49,080 --> 00:29:52,360
Speaker 4: How much volatility might this add well, I.

532
00:29:52,320 --> 00:29:55,760
Speaker 10: Think it depends on whether these longtime Reddit users that

533
00:29:55,840 --> 00:29:59,560
Speaker 10: got access at the IPO price are are willing to

534
00:29:59,600 --> 00:30:04,000
Speaker 10: stay Reddit stockholders. Part of the idea behind some of

535
00:30:04,040 --> 00:30:09,840
Speaker 10: these consumer facing companies giving access to their top users

536
00:30:09,880 --> 00:30:13,680
Speaker 10: at the IPO price. Is the idea that these would

537
00:30:13,720 --> 00:30:21,240
Speaker 10: be long term stockholders. The IPO is only given to insiders,

538
00:30:21,240 --> 00:30:24,320
Speaker 10: so people that are close to the banks normally and

539
00:30:24,400 --> 00:30:27,480
Speaker 10: they get there's expected to be a pop on day one,

540
00:30:27,560 --> 00:30:29,800
Speaker 10: and so it's seen as a gift that they get

541
00:30:30,080 --> 00:30:33,720
Speaker 10: access to those games on day one. And so this

542
00:30:33,760 --> 00:30:36,480
Speaker 10: is meant to be a good thing for Reddit shareholders,

543
00:30:36,960 --> 00:30:39,040
Speaker 10: Reddit users, and also for Reddit.

544
00:30:39,360 --> 00:30:42,400
Speaker 4: Yeah, Katie Roof has been across this IPO, We thank

545
00:30:42,440 --> 00:30:44,120
Speaker 4: you so much for bringing it to us and ed,

546
00:30:44,360 --> 00:30:47,280
Speaker 4: I mean there's a question of course future drive growth

547
00:30:47,320 --> 00:30:49,480
Speaker 4: drivers not just being advertising but AI too.

548
00:30:50,280 --> 00:30:53,320
Speaker 5: Yeah, that's the idea sell the very unique user data

549
00:30:54,160 --> 00:30:57,239
Speaker 5: to the companies building large language models. And BI has

550
00:30:57,280 --> 00:31:01,360
Speaker 5: this very wide range saying thirty to eight of Reddit

551
00:31:01,480 --> 00:31:05,160
Speaker 5: users only use Reddit, they don't use other social media platforms.

552
00:31:05,560 --> 00:31:08,480
Speaker 4: And really it's that focus on the desire to be

553
00:31:08,600 --> 00:31:10,520
Speaker 4: engaging there and what it means for some of these

554
00:31:10,600 --> 00:31:13,200
Speaker 4: large language models as well for a future direction of

555
00:31:13,240 --> 00:31:16,800
Speaker 4: travel when it comes to a diversification of revenue. Now,

556
00:31:16,840 --> 00:31:19,000
Speaker 4: we want to welcome to our Bloomberg TV and radio

557
00:31:19,040 --> 00:31:22,680
Speaker 4: audience worldwide. Reddits listing day, it's arrived.

558
00:31:22,960 --> 00:31:23,600
Speaker 6: Let's bring in.

559
00:31:23,480 --> 00:31:26,600
Speaker 4: Reddit's chief operating officer, Jen Wong for more on the

560
00:31:26,600 --> 00:31:29,440
Speaker 4: big day, live from the New York Sock Exchange. Jen,

561
00:31:29,680 --> 00:31:32,440
Speaker 4: it's a day to remember, and I'm interested as to

562
00:31:32,760 --> 00:31:37,680
Speaker 4: really for you how much you are excited about redditors

563
00:31:37,720 --> 00:31:40,600
Speaker 4: having part of the process here or worried a bit

564
00:31:40,640 --> 00:31:42,000
Speaker 4: about the volatility to come.

565
00:31:43,640 --> 00:31:45,000
Speaker 6: Thanks for having me today.

566
00:31:45,720 --> 00:31:48,400
Speaker 11: It's been our dream, our dream to have our users

567
00:31:48,440 --> 00:31:51,280
Speaker 11: and our communities to be able to be shareholders in Reddit.

568
00:31:51,760 --> 00:31:53,720
Speaker 6: Everything on Reddit is built.

569
00:31:53,400 --> 00:31:56,600
Speaker 11: By our users and communities, so having them be owners

570
00:31:56,600 --> 00:31:57,520
Speaker 11: makes a lot of sense.

571
00:31:57,600 --> 00:31:58,880
Speaker 6: We're so excited about that.

572
00:32:00,200 --> 00:32:04,080
Speaker 5: Jane, good morning, it's ed in San Francisco. What's the

573
00:32:04,120 --> 00:32:06,719
Speaker 5: main benefit of the IPO. You know, we always talk

574
00:32:06,760 --> 00:32:10,040
Speaker 5: about the money raise, the doll evaluation, but I always

575
00:32:10,040 --> 00:32:12,960
Speaker 5: reflect an IPO gets your name out there. Not everyone

576
00:32:13,040 --> 00:32:16,000
Speaker 5: is on Reddit, not everyone is a redditor. How do

577
00:32:16,040 --> 00:32:18,080
Speaker 5: you weigh up the pros and cons of listing?

578
00:32:19,880 --> 00:32:22,840
Speaker 11: Well, it's certainly a lot of press on a day

579
00:32:22,960 --> 00:32:26,440
Speaker 11: like today. It is a special day, but becoming a

580
00:32:26,440 --> 00:32:29,720
Speaker 11: public company has just made us a better company. We've

581
00:32:29,760 --> 00:32:33,640
Speaker 11: actually been in this process longer than most almost two

582
00:32:33,760 --> 00:32:37,360
Speaker 11: years actually, and that process has made us more disciplined,

583
00:32:37,800 --> 00:32:41,719
Speaker 11: more operationally rigorous, and actually allowed us to get to

584
00:32:41,760 --> 00:32:45,640
Speaker 11: know investors better and tell our story. And so this

585
00:32:45,800 --> 00:32:48,920
Speaker 11: whole process has made us a better company, and we're

586
00:32:48,960 --> 00:32:51,360
Speaker 11: prepared to be a public company. I think it's actually

587
00:32:51,400 --> 00:32:55,880
Speaker 11: been really good for us, and I think companies that

588
00:32:56,200 --> 00:32:59,520
Speaker 11: you can go public it's sort of a duty. It's

589
00:32:59,600 --> 00:33:03,360
Speaker 11: part of the process of maturing as a company.

590
00:33:03,800 --> 00:33:05,680
Speaker 6: And then the benefit of having.

591
00:33:05,440 --> 00:33:10,160
Speaker 11: Our sharehold our employee employees have liquidity which we promise

592
00:33:10,200 --> 00:33:13,520
Speaker 11: in them, and in addition, have our communities and users

593
00:33:13,560 --> 00:33:16,000
Speaker 11: be able to be shareholders makes a lot of sense

594
00:33:16,040 --> 00:33:16,480
Speaker 11: for Reddit.

595
00:33:17,680 --> 00:33:17,920
Speaker 7: Jen.

596
00:33:18,120 --> 00:33:21,440
Speaker 5: The evolution of the story is for you moving away

597
00:33:21,480 --> 00:33:25,200
Speaker 5: from a solely advertising based business model to one way

598
00:33:25,240 --> 00:33:28,840
Speaker 5: you license your user data to the companies that are

599
00:33:28,840 --> 00:33:31,640
Speaker 5: building large language models. I just asked if you could

600
00:33:31,680 --> 00:33:34,640
Speaker 5: explain to our audience how that works in practice, how

601
00:33:34,680 --> 00:33:36,080
Speaker 5: you're going to grow that business.

602
00:33:37,440 --> 00:33:40,760
Speaker 11: Yeah, well, just ahead of addressing that, I just wanted

603
00:33:40,760 --> 00:33:43,920
Speaker 11: to provide context. One of the things that's so special

604
00:33:43,920 --> 00:33:48,360
Speaker 11: about Reddit is that we play in three big addressable markets.

605
00:33:48,440 --> 00:33:51,680
Speaker 6: We have this core advertising business. Adds is a great business.

606
00:33:51,720 --> 00:33:54,680
Speaker 11: It's still early we have great traction and momentum. That's

607
00:33:54,720 --> 00:33:58,080
Speaker 11: our core business. We have an emerging data licensing business

608
00:33:58,080 --> 00:34:00,720
Speaker 11: that we built the foundations for last year because reddits

609
00:34:00,720 --> 00:34:04,720
Speaker 11: corpus of information is incredibly important to the training of

610
00:34:04,800 --> 00:34:08,279
Speaker 11: large language models and also for insights for different kinds

611
00:34:08,320 --> 00:34:08,920
Speaker 11: of businesses.

612
00:34:09,200 --> 00:34:10,839
Speaker 6: And the third is a.

613
00:34:10,920 --> 00:34:15,480
Speaker 11: User economy where our communities go beyond conversation into being able.

614
00:34:15,280 --> 00:34:16,319
Speaker 6: To transact with each other.

615
00:34:16,480 --> 00:34:18,880
Speaker 11: Now you asked about the data licensing business, which we've

616
00:34:18,880 --> 00:34:21,920
Speaker 11: built the foundations for last year. That has two pieces

617
00:34:21,960 --> 00:34:24,560
Speaker 11: to it. It is a piece that's sort of well established,

618
00:34:24,600 --> 00:34:29,719
Speaker 11: where there's social listening for marketing for companies who want

619
00:34:29,719 --> 00:34:32,560
Speaker 11: to understand what's happening on reddits and for marketing campaigns.

620
00:34:32,719 --> 00:34:35,839
Speaker 11: There's also financial services companies who are interested in that.

621
00:34:35,840 --> 00:34:39,560
Speaker 11: Those are well established markets. And then there's the new

622
00:34:39,680 --> 00:34:44,960
Speaker 11: emerging market of AI where large language models need data

623
00:34:45,000 --> 00:34:47,200
Speaker 11: to train on. And when you look at Reddit's corpus

624
00:34:47,680 --> 00:34:53,120
Speaker 11: nineteen years of human experience organized by topic with well

625
00:34:53,440 --> 00:34:57,880
Speaker 11: moderation and relevance, that's incredibly important to building both a

626
00:34:57,960 --> 00:35:02,080
Speaker 11: chat capability and the freshness of information. So that's an

627
00:35:02,120 --> 00:35:04,839
Speaker 11: area where you know we see opportunity. I think what

628
00:35:04,880 --> 00:35:06,920
Speaker 11: that signals, you know, whether it shows up honestly in

629
00:35:06,960 --> 00:35:08,839
Speaker 11: our revenue or what it shows up in the value

630
00:35:08,840 --> 00:35:11,040
Speaker 11: of Reddit is how valuable.

631
00:35:10,560 --> 00:35:13,400
Speaker 6: Reddit is, you know, the more that we move.

632
00:35:13,280 --> 00:35:16,560
Speaker 11: Toward this AI world, that corpus and that knowledge and

633
00:35:16,640 --> 00:35:19,680
Speaker 11: refreshment of human experience becomes more valuable.

634
00:35:19,400 --> 00:35:21,520
Speaker 4: To our TV and radio audience. We are speaking with

635
00:35:21,640 --> 00:35:25,560
Speaker 4: Reddit Chief operating Officer Gen Wong and to that ongoing

636
00:35:25,680 --> 00:35:28,799
Speaker 4: value of your data to AI and to the large

637
00:35:28,880 --> 00:35:32,520
Speaker 4: language models being developed. I mean those llms, the models

638
00:35:32,800 --> 00:35:33,240
Speaker 4: are being.

639
00:35:33,080 --> 00:35:35,000
Speaker 6: Built in new and different ways.

640
00:35:35,080 --> 00:35:39,919
Speaker 4: This actual technology also develops. I'm interested as to really

641
00:35:39,960 --> 00:35:42,160
Speaker 4: whether this goes on in perpetuity. Do you see this

642
00:35:42,200 --> 00:35:46,640
Speaker 4: sort of licensing being steady and secure for ten years

643
00:35:46,640 --> 00:35:46,960
Speaker 4: from now?

644
00:35:49,000 --> 00:35:52,160
Speaker 11: What I'd say is this is so early in this

645
00:35:52,880 --> 00:35:56,760
Speaker 11: emergence of this technology, it's hard to see far out.

646
00:35:57,280 --> 00:35:59,000
Speaker 11: The way I think about it, the way we think

647
00:35:59,000 --> 00:36:02,120
Speaker 11: about it, is this the read its corpus of data

648
00:36:02,160 --> 00:36:05,359
Speaker 11: is incredibly valuable, and it gets more valuable because as

649
00:36:05,400 --> 00:36:10,840
Speaker 11: there's more more content that's generated maybe by AI or computers,

650
00:36:11,320 --> 00:36:15,920
Speaker 11: original human thoughts and ideas increase in value. Right if

651
00:36:15,920 --> 00:36:18,360
Speaker 11: you think about it, a new car comes out who's

652
00:36:18,400 --> 00:36:19,160
Speaker 11: going to review it.

653
00:36:19,480 --> 00:36:21,560
Speaker 6: A real life family of six.

654
00:36:21,320 --> 00:36:24,280
Speaker 11: Can actually tell you what it's like to drive that car.

655
00:36:24,480 --> 00:36:27,520
Speaker 11: That's always going to be valuable, and so you know,

656
00:36:27,520 --> 00:36:29,480
Speaker 11: whether that shows up in data licensing or in the

657
00:36:29,520 --> 00:36:32,160
Speaker 11: products that Reddit builds, it is valuable.

658
00:36:32,680 --> 00:36:36,800
Speaker 4: Let's talk about a community that has been very valuable

659
00:36:36,800 --> 00:36:38,800
Speaker 4: at times and extraordinary at others.

660
00:36:38,800 --> 00:36:40,760
Speaker 6: To wool Street more broadly.

661
00:36:40,480 --> 00:36:43,720
Speaker 4: Has been the reditors who are very active on wool Street.

662
00:36:43,800 --> 00:36:45,399
Speaker 4: We go back to woll Street bets. We just think

663
00:36:45,400 --> 00:36:48,080
Speaker 4: about what happened to GameStop for example. There is a

664
00:36:48,200 --> 00:36:50,760
Speaker 4: double edged sword here for you involving your.

665
00:36:50,760 --> 00:36:51,880
Speaker 6: Editors as investors.

666
00:36:52,120 --> 00:36:54,719
Speaker 4: How secure are you that you won't become a meme

667
00:36:54,800 --> 00:36:58,920
Speaker 4: frenzy yourself to the up and to the dam.

668
00:36:59,040 --> 00:37:01,359
Speaker 11: Look, I love the ethos of that community in all

669
00:37:01,400 --> 00:37:04,839
Speaker 11: of our investing communities, and who knows, I mean, it's

670
00:37:04,920 --> 00:37:07,920
Speaker 11: it's Reddit, right, I mean, who knows what's going to happen,

671
00:37:09,120 --> 00:37:09,760
Speaker 11: So we'll see.

672
00:37:09,920 --> 00:37:12,759
Speaker 6: I mean it's hard to say, but in the end, I.

673
00:37:12,719 --> 00:37:15,960
Speaker 11: Think having our users and communities be shareholders is a

674
00:37:16,000 --> 00:37:18,880
Speaker 11: good thing and I think ultimately will be judged on

675
00:37:18,920 --> 00:37:21,160
Speaker 11: our performance, and that'll take time for people to know

676
00:37:21,239 --> 00:37:24,040
Speaker 11: but ultimately I think that's what investors Judge Judge.

677
00:37:23,840 --> 00:37:24,160
Speaker 9: Us on.

678
00:37:25,600 --> 00:37:30,400
Speaker 5: Jen we're awaiting the opening trade Bloomberg reporting. The indication

679
00:37:30,600 --> 00:37:32,960
Speaker 5: is the stock will open somewhere between forty two or

680
00:37:33,000 --> 00:37:36,160
Speaker 5: forty six dollars a share. It's quite a premium on

681
00:37:36,280 --> 00:37:39,759
Speaker 5: the IPO price. You're one of the biggest shareholders as well.

682
00:37:39,920 --> 00:37:42,800
Speaker 5: Just give me your personal feeling in this moment.

683
00:37:45,560 --> 00:37:47,560
Speaker 6: You know, it's kind of like a wedding day.

684
00:37:47,600 --> 00:37:54,799
Speaker 11: I guess lots of different emotions, joy, relief, jitters, all

685
00:37:54,840 --> 00:37:57,640
Speaker 11: of it in one I haven't even processed it, frankly,

686
00:37:58,880 --> 00:38:03,000
Speaker 11: but it is a special moment. It is one milestone

687
00:38:03,040 --> 00:38:06,239
Speaker 11: in a history of a nineteen year company that I

688
00:38:06,280 --> 00:38:09,960
Speaker 11: think has a lot of runway. You know, we're nineteen

689
00:38:10,040 --> 00:38:14,120
Speaker 11: years old, but we're really young as a company, and

690
00:38:14,800 --> 00:38:16,320
Speaker 11: this is sort of the start of the next chapter.

691
00:38:17,680 --> 00:38:17,960
Speaker 7: Read it.

692
00:38:18,080 --> 00:38:20,920
Speaker 5: Chief operating Officer Gem Wong, live from the NYC. We're

693
00:38:20,960 --> 00:38:23,399
Speaker 5: grateful for your time on listing Day.

694
00:38:23,480 --> 00:38:23,799
Speaker 6: Thank you.

695
00:38:33,800 --> 00:38:35,480
Speaker 7: Okay, time for VC Spotlight and.

696
00:38:35,480 --> 00:38:39,680
Speaker 5: Sequoia has just wrapped up its AI Ascent event right

697
00:38:39,680 --> 00:38:42,040
Speaker 5: here in San Francisco, which brought together some of the

698
00:38:42,080 --> 00:38:45,480
Speaker 5: best and biggest minds in artificial intelligence. Let's bring it

699
00:38:45,520 --> 00:38:49,160
Speaker 5: SCOA Capital partner Constantine Butler to explain who was there?

700
00:38:49,160 --> 00:38:51,719
Speaker 5: There were big names in the building. Why did you

701
00:38:51,800 --> 00:38:52,160
Speaker 5: do that?

702
00:38:52,880 --> 00:38:55,799
Speaker 12: Well, first, ad Caroline, thank you so much for having

703
00:38:55,800 --> 00:38:56,200
Speaker 12: me again.

704
00:38:56,480 --> 00:38:56,959
Speaker 7: You're right.

705
00:38:57,040 --> 00:39:00,840
Speaker 12: Yesterday we had one hundred of the leading minds in AI.

706
00:39:01,280 --> 00:39:03,960
Speaker 12: We brought them together because we want to discuss the

707
00:39:04,000 --> 00:39:04,520
Speaker 12: state of.

708
00:39:04,480 --> 00:39:07,640
Speaker 5: The AI industry, just portfolio companies or the community, the

709
00:39:07,680 --> 00:39:09,960
Speaker 5: whole community, right, not just portfolio companies.

710
00:39:09,960 --> 00:39:12,880
Speaker 12: We're talking the leading minds in AI. We wanted to

711
00:39:12,920 --> 00:39:15,239
Speaker 12: talk about the state of the industry today, but also

712
00:39:15,280 --> 00:39:17,480
Speaker 12: where we're going, what's next, and.

713
00:39:17,440 --> 00:39:18,400
Speaker 7: What was the conclusion.

714
00:39:18,640 --> 00:39:21,160
Speaker 12: Well, one thing I think will surprise your audience is

715
00:39:21,200 --> 00:39:24,239
Speaker 12: that everybody knew that we had to be patient in

716
00:39:24,280 --> 00:39:26,880
Speaker 12: this process. It feels like we started the AI process

717
00:39:26,880 --> 00:39:29,360
Speaker 12: as a sprint, but everyone knows this is a marathon.

718
00:39:29,840 --> 00:39:32,319
Speaker 12: So what's ahead of us is the long haul, and

719
00:39:32,360 --> 00:39:34,439
Speaker 12: every everyone's getting ready for that long haul.

720
00:39:34,800 --> 00:39:39,680
Speaker 4: Custinton, I'm sure a topic of conversation must have been inflection,

721
00:39:40,080 --> 00:39:43,360
Speaker 4: basically going in house to Microsoft and yes, licensing some

722
00:39:43,440 --> 00:39:46,239
Speaker 4: of its technology. At the same time you're speaking with

723
00:39:46,320 --> 00:39:49,600
Speaker 4: the likes of the co CEO of Anthropic, which has

724
00:39:49,600 --> 00:39:52,239
Speaker 4: a deal with Amazon. You're also talking with Mistrale, which

725
00:39:52,280 --> 00:39:55,040
Speaker 4: is of course got a deal with Microsoft. How is

726
00:39:55,120 --> 00:39:59,960
Speaker 4: that whole ecosystem ultimately building itself? There seems to be

727
00:40:00,000 --> 00:40:03,080
Speaker 4: it'll be some very interesting partnerships that end up looking

728
00:40:03,120 --> 00:40:05,400
Speaker 4: like MNA. How do you feel as someone who's putting

729
00:40:05,400 --> 00:40:06,960
Speaker 4: money into these businesses.

730
00:40:07,560 --> 00:40:09,719
Speaker 7: Caroline, You're exactly right. There was a lot of talk

731
00:40:09,760 --> 00:40:10,160
Speaker 7: about that.

732
00:40:10,920 --> 00:40:13,080
Speaker 12: And one of the major trends that I think will

733
00:40:13,160 --> 00:40:15,959
Speaker 12: surprise your audience is that the leaders we're talking about

734
00:40:15,960 --> 00:40:20,359
Speaker 12: how ais are gonna actually work together. So we're talking

735
00:40:20,360 --> 00:40:23,560
Speaker 12: about this concept of networks of ais, not just so

736
00:40:23,560 --> 00:40:26,360
Speaker 12: you're gonna have one AI, but you're gonna have multiple

737
00:40:26,360 --> 00:40:29,439
Speaker 12: ais that are good at different tasks, and they're gonna

738
00:40:29,480 --> 00:40:32,080
Speaker 12: work together, cooperate and compete. I'll give you a very

739
00:40:32,080 --> 00:40:35,320
Speaker 12: tangible example. I use a product called dust. It also

740
00:40:35,560 --> 00:40:38,840
Speaker 12: happens to be a wonderful Sequoia portfolio company. It allows

741
00:40:38,880 --> 00:40:42,640
Speaker 12: me to call both GPT four and mistraw large, and

742
00:40:42,800 --> 00:40:47,000
Speaker 12: also Claude three from Anthropic in parallel. I can have

743
00:40:47,040 --> 00:40:50,200
Speaker 12: the models compete against each other, I can have them collaborate,

744
00:40:50,480 --> 00:40:52,920
Speaker 12: and this yields an even better outcome.

745
00:40:53,200 --> 00:40:54,280
Speaker 7: That's the future of AI.

746
00:40:54,480 --> 00:40:57,040
Speaker 12: It's gonna be many models working together in a network.

747
00:40:57,200 --> 00:40:59,520
Speaker 4: Another portfolio company being hugging face, which are cool. So

748
00:40:59,520 --> 00:41:03,080
Speaker 4: allays bring together the entire ecosystem in that manner. And

749
00:41:03,120 --> 00:41:06,000
Speaker 4: there must be an awful lot of debate ultimately about

750
00:41:06,480 --> 00:41:10,000
Speaker 4: well open versus closed. You've got open AI, and many

751
00:41:10,200 --> 00:41:13,040
Speaker 4: would argue that open AI ain't that open anymore, and

752
00:41:13,239 --> 00:41:15,800
Speaker 4: some would say for good reason, how are you seeing

753
00:41:16,239 --> 00:41:20,399
Speaker 4: the overall AI community divide itself on how open large

754
00:41:20,480 --> 00:41:21,440
Speaker 4: language models should be.

755
00:41:22,600 --> 00:41:24,000
Speaker 7: I'll tell you what we heard yesterday.

756
00:41:24,400 --> 00:41:28,440
Speaker 12: We heard a lot of enthusiasm about open source. And frankly,

757
00:41:28,480 --> 00:41:30,400
Speaker 12: it wasn't just from the builders. So a lot of

758
00:41:30,400 --> 00:41:32,279
Speaker 12: the builders, of course want open source so that they

759
00:41:32,280 --> 00:41:36,000
Speaker 12: can run these models in their own clouds, but it

760
00:41:36,040 --> 00:41:36,879
Speaker 12: was also.

761
00:41:36,640 --> 00:41:38,000
Speaker 7: From the application layer.

762
00:41:38,320 --> 00:41:40,919
Speaker 12: We had CJ the COO and president of service Now,

763
00:41:41,239 --> 00:41:44,080
Speaker 12: and he talked about how service now is using AI

764
00:41:44,200 --> 00:41:47,560
Speaker 12: internally to deflect twenty percent of tickets that's for it

765
00:41:47,840 --> 00:41:50,960
Speaker 12: stuff like ordering a laptop, that's for HR, stuff like

766
00:41:51,080 --> 00:41:54,200
Speaker 12: leave and he made it very clear, we need the

767
00:41:54,239 --> 00:41:57,080
Speaker 12: open source because that's going to help us drive costs down.

768
00:41:57,280 --> 00:42:00,600
Speaker 12: That's going to help us preserve margin. So customers want this.

769
00:42:00,640 --> 00:42:02,839
Speaker 12: We've heard it from customers. We've also heard it from

770
00:42:02,880 --> 00:42:03,880
Speaker 12: the founders and the builders.

771
00:42:04,560 --> 00:42:06,840
Speaker 5: Just a headline on the Bloomberg to make our audience

772
00:42:06,920 --> 00:42:09,760
Speaker 5: where reddit share is now indicated to open at forty

773
00:42:09,800 --> 00:42:12,560
Speaker 5: four to forty eight dollars to share a premium on

774
00:42:12,640 --> 00:42:15,040
Speaker 5: the thirty four dollars that they price the IPO at.

775
00:42:15,160 --> 00:42:16,719
Speaker 5: We were just talking to gen want at redit the

776
00:42:16,760 --> 00:42:19,520
Speaker 5: idea that they are in an available data set for

777
00:42:19,600 --> 00:42:21,120
Speaker 5: training large language models.

778
00:42:21,360 --> 00:42:22,399
Speaker 7: The difference in the.

779
00:42:22,400 --> 00:42:26,719
Speaker 5: Data is the focus of reddits. They only use Reddit, right,

780
00:42:26,800 --> 00:42:30,040
Speaker 5: was that something you've discussed about the availability of data

781
00:42:30,080 --> 00:42:30,480
Speaker 5: and Reddit?

782
00:42:30,520 --> 00:42:33,080
Speaker 7: I mean, what are people saying about that? Absolutely? First

783
00:42:33,080 --> 00:42:34,440
Speaker 7: of all, we're so happy for Reddit.

784
00:42:34,600 --> 00:42:37,000
Speaker 12: This is an amazing milestone and Junge just seve it

785
00:42:37,360 --> 00:42:40,000
Speaker 12: and IPO is an important milestone in the journey.

786
00:42:40,640 --> 00:42:41,359
Speaker 6: And this is an.

787
00:42:41,320 --> 00:42:44,360
Speaker 12: Example of how the fact that they created an online community,

788
00:42:44,560 --> 00:42:47,120
Speaker 12: a true community where they were actually working together, is

789
00:42:47,120 --> 00:42:49,120
Speaker 12: going to pay off, not just for advertising that's the

790
00:42:49,160 --> 00:42:51,080
Speaker 12: obvious business, but for data.

791
00:42:51,200 --> 00:42:51,920
Speaker 7: We know they have a.

792
00:42:51,840 --> 00:42:54,120
Speaker 12: Big partnership with Google and we're going to see a

793
00:42:54,200 --> 00:42:56,799
Speaker 12: lot more businesses like this that have accumulated that data

794
00:42:56,800 --> 00:42:59,160
Speaker 12: advantage being partners for.

795
00:42:59,239 --> 00:43:02,080
Speaker 7: Great AI products that need to train on that data.

796
00:43:02,560 --> 00:43:05,040
Speaker 5: It's core capital partner Constemula. Great to have you back

797
00:43:05,080 --> 00:43:08,480
Speaker 5: in the studio, San Francisco. What a day it's been carried.

798
00:43:08,640 --> 00:43:12,920
Speaker 5: This for now is been big technology. Thanks ed, Thanks Jian.

799
00:43:25,160 --> 00:43:28,200
Speaker 3: We oglage that Apple has employed a strategy that relies

800
00:43:28,239 --> 00:43:34,200
Speaker 3: on exclusionary anti competitive conduct that hurts both consumers and developers.

801
00:43:34,960 --> 00:43:39,360
Speaker 3: For consumers, that has meant fewer choices, higher prices and fees,

802
00:43:39,960 --> 00:43:44,799
Speaker 3: lower quality smartphones, apps and accessories, and less innovation from

803
00:43:44,840 --> 00:43:46,279
Speaker 3: Apple and its competitors.

804
00:43:48,080 --> 00:43:51,320
Speaker 4: Attorney General Garland there of the Department of Justice, speaking

805
00:43:51,360 --> 00:43:54,919
Speaker 4: earlier today, Apple facing global anti trust allegations, of course

806
00:43:55,000 --> 00:43:57,640
Speaker 4: not known from the US, but also the EU. We

807
00:43:57,760 --> 00:44:00,920
Speaker 4: understand they're going to do a full probe Google and Apple.

808
00:44:01,280 --> 00:44:04,759
Speaker 4: You commissioned a EVP, Margravestdaya told us this earlier in

809
00:44:04,800 --> 00:44:05,120
Speaker 4: the month.

810
00:44:06,080 --> 00:44:09,399
Speaker 13: We see an illegal abuse that has been ongoing for

811
00:44:09,840 --> 00:44:13,040
Speaker 13: a number of years, which has made it, you know,

812
00:44:13,239 --> 00:44:17,120
Speaker 13: virtually impossible for customers to choose if they want the

813
00:44:17,160 --> 00:44:21,719
Speaker 13: payment service in app by Apple paying the fee, or

814
00:44:21,760 --> 00:44:23,840
Speaker 13: they would want to go, for instance, to a website

815
00:44:24,160 --> 00:44:26,600
Speaker 13: and have a cheaper subscription price.

816
00:44:28,840 --> 00:44:31,640
Speaker 4: Bags margam and for more What's apples take.

817
00:44:33,600 --> 00:44:37,960
Speaker 14: Yeah, Apple certainly disagrees across the board on this lawsuit,

818
00:44:39,160 --> 00:44:43,000
Speaker 14: implying that the lawsuit is not legal, saying the iPhone

819
00:44:43,040 --> 00:44:46,480
Speaker 14: is not a monopoly, and pushing back heavily on the

820
00:44:46,520 --> 00:44:50,000
Speaker 14: bevy of claims The Department of Justice is going after

821
00:44:50,080 --> 00:44:53,719
Speaker 14: Apple from everything from green Bubbles to car play to

822
00:44:53,800 --> 00:44:59,920
Speaker 14: how iCloud storage integrated, blaming Apple for hurting consumers, hurting choice,

823
00:45:00,560 --> 00:45:05,480
Speaker 14: hurting developers. Certainly, Apple has squashed developers and made it

824
00:45:05,520 --> 00:45:07,640
Speaker 14: difficult for developers to.

825
00:45:07,680 --> 00:45:09,480
Speaker 7: Compete in some instances.

826
00:45:10,360 --> 00:45:12,200
Speaker 14: On the other hand, a lot of this comes down

827
00:45:12,239 --> 00:45:17,359
Speaker 14: to user interface and philosophical decisions Apple made many years

828
00:45:17,400 --> 00:45:20,760
Speaker 14: ago about its integrated experience. So we'll have to see

829
00:45:20,880 --> 00:45:23,840
Speaker 14: where Apple is willing to meet the DOJ how they

830
00:45:23,880 --> 00:45:27,040
Speaker 14: can work together to create some solutions here to keep

831
00:45:27,040 --> 00:45:30,440
Speaker 14: the iPhone still a secure, integrated platform, but certainly it

832
00:45:30,480 --> 00:45:32,759
Speaker 14: needs to get a bit more open and a bit

833
00:45:32,800 --> 00:45:36,040
Speaker 14: more competitive for third party developers and accessory makers.

834
00:45:36,480 --> 00:45:39,520
Speaker 4: The man who can explain the Apple philosophy, Mark German.

835
00:45:39,719 --> 00:45:41,839
Speaker 4: We thank you so much for jumping in on the.

836
00:45:41,840 --> 00:45:44,600
Speaker 6: News and boy that does it for

837
00:45:44,680 --> 00:45:47,480
Speaker 4: This extremely busy edition of Blue meg Technology