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

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Speaker 2: From Mahart where Innovation, money and power.

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Speaker 1: Collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Lovelove.

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Speaker 3: I'm Caroline Hyde a Bloomberg's World Headquarters in New York,

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Speaker 3: and I'm Ed Lovelow in San Francisco.

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Speaker 4: This is Bloomberg Technology.

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Speaker 3: Coming up the competition for AI chip dominance. It heats

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Speaker 3: up as Intel takes aimin in video details to come.

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Speaker 5: Thus we'll bring you the latest updates from Paramount's annual

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Speaker 5: meeting which kicked off this morning.

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Speaker 6: And Tesla shars.

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Speaker 3: They drop on reports that Elo Musk has shifted thousands

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Speaker 3: of AI chips to Xai over the vehicle maker. First,

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Speaker 3: let's check out on the broader market context and look

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Speaker 3: jobs market cooling, those jolts numbers.

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Speaker 6: Really putting pressure on. Certainly the stock market for the.

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Speaker 3: Bond market is currently seeing money move in at the

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Speaker 3: moment yields go lower. Some three basis points is maybe

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Speaker 3: we see space for the Federal Reserve to be able

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Speaker 3: to cut later into the year. Now, remember we've got

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Speaker 3: the all important jobs data on Friday as well to

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Speaker 3: digest interesting that even though we've got money going into

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Speaker 3: the one market, we're not seeing that optimism around technology

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Speaker 3: stocks right now. We're off by some three tens percent.

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Speaker 3: We're digging into the individual names that are perhaps dragging

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Speaker 3: us a little bit lower. But look, we've been seeing

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Speaker 3: all time highs hit time and time again. Maybe a

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Speaker 3: bit of profit taking currently being digested. We're looking at, though,

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Speaker 3: a macro picture that goes global for a moment. This

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Speaker 3: is a political story, complete upending of what many had

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Speaker 3: anticipated happening in the Indian election, and for now the

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Speaker 3: euroupee is down versus the US dollars significantly on what

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Speaker 3: has been a shot coming from a political stage where

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Speaker 3: Mody does not seem to be having the majority that

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Speaker 3: was anticipated.

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Speaker 6: More on that throughout the show.

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Speaker 3: Let's move on to happen in the world of crypt

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Speaker 3: so a little bit more risk on sentiment coming from bitcoin.

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Speaker 3: At the moment, we're up eight ten percent, nine tens percent,

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Speaker 3: let's call it. At one point ed we eclipsed to

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Speaker 3: seventy thousand dollars. Handle this as we see perhaps more

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Speaker 3: money moving into some of the ETF products and well

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Speaker 3: maybe some of that meme frenzy from yesterday helped some

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Speaker 3: of the tailwinds.

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Speaker 6: But what are you seeing on the micro Let's go back.

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Speaker 4: To that Tesla story for a minute.

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Speaker 5: The NBC reporting that Elon Musk directed in video to

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Speaker 5: divert twelve thousand, h one hundreds or AI chips that

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Speaker 5: had been destined for Tesla to his other companies X

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Speaker 5: and XAI. Tesla shares now basically flat, they've been lower.

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Speaker 5: I think everyone's trying to make sense of what that

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Speaker 5: means for the kind of Tesla pledge to achieve full

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Speaker 5: self driving, because that is principally what the AI accelerators

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Speaker 5: are being used for in the Tesla case. We'll get

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Speaker 5: more on that later in the hour. Back to our

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Speaker 5: top story, which is the battle ground and the market

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Speaker 5: for AI accelerators. Intel in a video about both now

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Speaker 5: sort of modestly lower. Intel had been higher. Pat Gelsinger

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Speaker 5: on age at Computex a lot of headlines coming out

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Speaker 5: of Computex. Here is what Intel CEO Pat Gelsinger had

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Speaker 5: to say about that market for AI chips.

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Speaker 7: Every device will become an AI device, every company will

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Speaker 7: become an AI company, and we see this as the

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Speaker 7: fuel that's driving the semiconductor industry to reach a trillion

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Speaker 7: dollars by the end of the decade.

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Speaker 5: The other thing that he said, blue berg Z and

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Speaker 5: King is that Moore's law is very much alive, a

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Speaker 5: reference to the white paper in nineteen sixty five by

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Speaker 5: one of Intel's co founders that the number of transistors

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Speaker 5: on an integrated circuit will double every year without sort

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Speaker 5: of adding costs to the production process. But what he

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Speaker 5: was really doing was pushing back against Jensen Huang of

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Speaker 5: Nvidia and saying we're going to catch up.

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Speaker 4: We're going to do this.

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Speaker 8: Yeah, I mean, he's arguing his case, right, He's saying, look,

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Speaker 8: we can still do it. He's trying to make the

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Speaker 8: case that Intel is still relevant and can have a

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Speaker 8: central role in what's going on and can capture some

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Speaker 8: of this massive amount of spending. But at the moment,

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Speaker 8: all of that money is going to Innvidia. Over one

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Speaker 8: hundred billion dollars of revenue projected for that data center

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Speaker 8: unit this year. Intel's data center unit is going sideways

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Speaker 8: at best, and I.

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Speaker 6: Think what they have to compete on.

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Speaker 3: Yes, we're hearing yet once again, annual upgrades to the

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Speaker 3: offerings of semiconductors in but it's the full package that

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Speaker 3: you get with in Nvidia, even if it is expensive.

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Speaker 8: Yeah, I mean what Jensen has already decided is, look, hey,

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Speaker 8: I've got more about four big customers, the big hyperscalers.

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Speaker 8: But guess what I really need to broaden that audience.

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Speaker 8: So he's networking, as you mentioned, full servers, basically supercomputers,

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Speaker 8: and he's put everything together already so that pretty much

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Speaker 8: anybody can adopt it. So anybody that's trying to crash

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Speaker 8: his party, like Pat Gelsinger, like Lisa Seuer, AMD has

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Speaker 8: to come to the table with everything, including the software,

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Speaker 8: and that's a massive amount of effort it required. They've

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Speaker 8: got the resources, but he's got the lead.

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Speaker 3: He does, and at the moment it feels as though

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Speaker 3: everyone else is slightly snapping around his heels. Where is ultimately,

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Speaker 3: for now all the value attributed to data centers? Can

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Speaker 3: any of it be sort of thought to be being

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Speaker 3: brought this one trillion dollar market that Pat Gilsinger talks of,

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Speaker 3: how much is that going to be allocated to PC?

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Speaker 8: Well that was the show. The sort of sideline of

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Speaker 8: the show is, hey, look will of the accelerators, guess

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Speaker 8: what your PC is going to get? Cool again. It's

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Speaker 8: going to get interesting again. We had Qualcomm Christian i'mon there.

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Speaker 8: We had Lisa Sue of A and D talking about it.

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Speaker 8: So they're all talking about revitalizing this thing that we

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Speaker 8: all carry around and all use all day at the moment.

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Speaker 8: You know, I saw some demos yesterday. They were okay.

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Speaker 8: You know, I think we need to see a lot

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Speaker 8: more on the software side before we can get fully

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Speaker 8: excited about this being a new dawn for a product

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Speaker 8: we've seen for a long time.

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Speaker 5: I get all of the stories, particularly in Intel's case,

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Speaker 5: Pat has been saying I will return Intel to a

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Speaker 5: position of technology leadership, and the problem is is that

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Speaker 5: presently revenues and sales don't match that story. So Intel

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Speaker 5: basically five hundred million this year for AI accelerators, AMD

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Speaker 5: four billion, which is slightly better than they previously forecast,

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Speaker 5: and Nvidia let's just call it forty billion, And that's

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Speaker 5: the state of play.

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Speaker 8: Yeah, I mean, the number is probably close to one

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Speaker 8: hundred at this point. If you look at the estimates,

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Speaker 8: it's absolutely enormous. But yeah, back to Pat exactly what

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Speaker 8: you say, which is he's got all of these audiences,

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Speaker 8: he has to serve. He has his internal audience. He

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Speaker 8: has to motivate his engineers, he has to get his

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Speaker 8: customers excited about what he's going to offer. But at

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Speaker 8: the same time, if he promises too much and makes

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Speaker 8: too bullish an attitude, investors are going to get excited

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Speaker 8: and think, oh, hey, we're going to see a big

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Speaker 8: upside on earnings, and he can't deliver that at the moment.

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Speaker 3: So Ian King breaking down, what is the ongoing fight

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Speaker 3: amid Ai semi conductors?

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Speaker 6: Brilliant have you taking on Taiwan?

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Speaker 3: Let's move over and think what this means for market

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Speaker 3: capitalizations the fight that goes on there. Ibec Oscodeshkaya is

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Speaker 3: with US senior market analyst over at Swiss code Ebec.

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Speaker 3: It's great to have you back on the show, and

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Speaker 3: there has been a tussle at the top. Market valuations

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Speaker 3: just keep on being allocated to Nvidia.

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Speaker 6: Is that the right step?

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Speaker 1: Well?

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Speaker 9: I think that Nvidia is making the headlines and they're

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Speaker 9: doing a great job. Not only that they are making

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Speaker 9: huge progress on their numbers. They do make enormous forecasts

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Speaker 9: and they beat them by very comfortable margins quarter after quarter,

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Speaker 9: but they come very regularly with new updates, with new promises,

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Speaker 9: with a new idea of, for example, creating an ecosystem

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Speaker 9: offering hardware, software and services.

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Speaker 6: So they are making the.

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Speaker 9: AI a full environment where everybody could be interested and

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Speaker 9: everybody will find their well what they're looking for. So

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Speaker 9: in the sense, Nvidia looks like it's still except ahead

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Speaker 9: of the other competitors. And in terms of P ratio,

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Speaker 9: what we see is that even though the prices are

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Speaker 9: going higher, well the PI ratio is not going that

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Speaker 9: high because well, the earnings actually do follow up.

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Speaker 4: Epec.

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Speaker 5: Let me show you this chart, and it's a busy one,

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Speaker 5: so I'll explain what it is that we're looking at.

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Speaker 5: If you think about it, Big Picture Video is just

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Speaker 5: a few percentage points away from exceeding Apple's market cap,

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Speaker 5: from having a market cap greater than Canada's equity market,

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Speaker 5: and ten percent or so would take it beyond Microsoft

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Speaker 5: to be the world's most valuable company. Is that justified

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Speaker 5: to your mind?

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Speaker 9: Well, I can'tually tell you this is justified.

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Speaker 6: But today with the AI.

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Speaker 9: Revolution and media has been cut uppoted to that place

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Speaker 9: of the leader of this market, and the leader is

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Speaker 9: in a revolution. So this is not something that happens

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Speaker 9: every year. This is once in a decade or once

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Speaker 9: in a few decade thing. If AI is the next

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Speaker 9: thing after Internet, that Nvidia has get a huge opportunity,

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Speaker 9: a huge potential to increase as business. And now we

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Speaker 9: are reading the reports and NVDA is not selling chips.

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Speaker 9: It is now selling an environment and selling a dream,

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Speaker 9: and it is actually selling us in new lives, a

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Speaker 9: new way of doing things. And now we are just

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Speaker 9: at the beginning and people know that the opportunities are

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Speaker 9: simply huge. So yes, as Apple has become one of

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Speaker 9: the world's most valuable companies because while they just got

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Speaker 9: this iPhone in our hands, well, MVDA could very well

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Speaker 9: become the next big thing while putting AI in our

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Speaker 9: devices and make our lives completely different from what it

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Speaker 9: was before.

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Speaker 3: I really like that you've referenced Apple there, ultimately, because

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Speaker 3: the market capitalizations are.

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Speaker 6: Buying each with each other.

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Speaker 3: But in our tech news daily, there's a great thought

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Speaker 3: leadership piece there ultimately that Apple did this previously.

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Speaker 6: It won out by having a sort.

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Speaker 3: Of closed wall ecosystem, whereas Google went to say, hey,

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Speaker 3: everyone can play in our garden. Whereas seeing that sort

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Speaker 3: of playing out within video versus the likes of well,

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Speaker 3: of course the other competitors that we've had for whether

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Speaker 3: it be Intel working with all the other particular players

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Speaker 3: out that EPEC.

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Speaker 6: I'm interested in.

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Speaker 3: Not just the analogy between Apple, what's happening in China.

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Speaker 3: I know you've had some thought leadership there from your

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Speaker 3: own and whether if you can invest in Chinese AI

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Speaker 3: they might went out too well.

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Speaker 9: Actually, we think that Chinese technology and AI related companies

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Speaker 9: are intriguing because we know that in this context of

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Speaker 9: technology war, Chinese government is putting a lot of weight

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Speaker 9: behind US technology and AI companies, and China does have

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Speaker 9: this pool of very big technology companies that have been

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Speaker 9: once very popular that still is in China, and that

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Speaker 9: have a proven track record and app that are right

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Speaker 9: now treating at extremely low valuations compared to the US peers.

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Speaker 1: I mean we are talking about.

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Speaker 9: Peer ratio for around ten to twenty for the big

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Speaker 9: Chinese technolology sucks, compared to six to six for MBDIA

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Speaker 9: at one hundreds for i AMD for example. So in this

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Speaker 9: context they are cheap and interesting. Now, one risk is

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Speaker 9: the geopolitical and political risk. I'm going to put that aside.

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Speaker 9: But one other risk right now is the fact that

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Speaker 9: these technology companies in China are in a fierce competition

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Speaker 9: against each other, and they are mostly focused on expanding

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Speaker 9: their market share rather than maximizing their profits. This is

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Speaker 9: something that keeps investors a little bit relaxing regarding the

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Speaker 9: Chinese technology sucks. But this is temporary because ultimately one

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Speaker 9: or a few of these technologies sucks are going to

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Speaker 9: be the winners of this AI revolution in China, and

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Speaker 9: that day, as an investor, well, you want to be

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Speaker 9: in that elevator.

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Speaker 5: We started this program with Pat Gelsinger's belief that Moore's

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Speaker 5: law is intact that they will regain a foothold in

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Speaker 5: the market. Is the addressable market big enough to have AMD,

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Speaker 5: Intel and all offering into the same thing.

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Speaker 9: Well, I think the market is huge.

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Speaker 6: The opportunities are huge.

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Speaker 9: But what's going to matter is not only how fast

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Speaker 9: and how efficient the chips are, but it's also how

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Speaker 9: well the service and the ecosystem and the environment that

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Speaker 9: these companies are going to offer. And it looks like

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Speaker 9: Nvidia has well, I have a very good understanding of

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Speaker 9: this three hundred and sixty degree offering. So it's not

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Speaker 9: going to be about chips only, but it's going to

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Speaker 9: be about who is going to offer the best service

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Speaker 9: to like the most of the companies on the face

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Speaker 9: of the start not only is the big technology companies,

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Speaker 9: but to companies across mock sectors.

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Speaker 6: So I think that in.

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Speaker 9: This sense, yes, there's demand for a lot of chips

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Speaker 9: because the AI revolution is happening and we.

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Speaker 6: Are all concerned with it.

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Speaker 9: But the real winners are then going to be not

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Speaker 9: the best ones in terms of their products, but also

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Speaker 9: the ones that are going to be offering all the

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Speaker 9: environment and the universe with it.

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Speaker 5: You paid cost Code SKay, a senior market analyst over

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Speaker 5: at Swiss Quote, thank you very much. Now coming up

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Speaker 5: on the program paramounts and your meeting is underway. We're

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Speaker 5: going to bring you those details next, Cary, what are

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Speaker 5: you looking at?

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Speaker 3: Just go back to chips for a moment, because we've

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Speaker 3: had on the show before ed Core, we've CEO. Look,

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Speaker 3: that's it's a private company cloud computing provider ultimately trying

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Speaker 3: to win out and offering data center capacity for AI.

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Speaker 6: They're making a deal.

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Speaker 3: They're going to spend about a billion dollars to acquire

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Speaker 3: a bitcoin minor call Scientific for four five dollars seventy

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Speaker 3: five for shares. You can see we go hire on

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Speaker 3: call Scientific today up thirty four percent from New York,

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Speaker 3: San Francisco.

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Speaker 10: This is a Boombog technology.

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Speaker 3: Paramount having its annual general meeting today. That's after the

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Speaker 3: reporting that keeps coming from Skydance Media's plan we understand

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Speaker 3: to offer twenty three dollars a share to investors for

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Speaker 3: the latest who want bring Ethan Raganathan of course of

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Speaker 3: broome Bag Intelligence.

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Speaker 6: And we think.

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Speaker 3: About the promises made from these new leaders, three co CEOs,

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Speaker 3: interim CEOs. It feels talking about streaming partnerships, cost cutting.

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Speaker 6: Any of that. Master if there's potentially a deal on

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Speaker 6: the table.

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Speaker 2: Not really, Caroline, and you know this, this has really

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Speaker 2: been the story of Paramount for so many months now

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Speaker 2: because the fundamentals and the fundamentals are pretty weak, those

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Speaker 2: have been completely overshadowed by these ongoing M and A talks.

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Speaker 2: I mean, sky Dance has now been in this M

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Speaker 2: and A mix for many, many months, I would say

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Speaker 2: almost eight nine months. They had almost a thirty day

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Speaker 2: exclusive negotiating period which expired in early May. There was

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Speaker 2: another offer from Sony which was on the table. I

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Speaker 2: think that you know, the speculation that Sony is still interested,

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Speaker 2: that's obviously dying. And you know, we still kind of

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Speaker 2: have the upgraded sky Dance offer for Paramount, but we

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Speaker 2: do require that final sign off from you know, the

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Speaker 2: controlling shareholder, Sherry Redstone. Yes, they did have the annual

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Speaker 2: shareholder meeting, as you just pointed out, and obviously they

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Speaker 2: outlined a lot of strategic initiatives. Again, as you said,

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Speaker 2: I don't think any of it matters right now because

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Speaker 2: you still have you know, the potential of this huge

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Speaker 2: deal kind of coming through.

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Speaker 5: So Githa and you are in research you published this

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Speaker 5: morning saying final act in Paramount m and a saga

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Speaker 5: as sky Dance poised for takeover dramatic television movie voice.

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Speaker 4: Are you sure it's the final act?

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Speaker 6: I'm not.

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Speaker 2: And that's why I said it's not over until it's

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Speaker 2: actually over, because we've seen this movie now so many

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Speaker 2: times ed with with Paramount, right, sky Dance has been in,

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Speaker 2: they've been out. You know, they were prepared to walk

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Speaker 2: away from the whole thing, and then of course you

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Speaker 2: had Sony and then you have some additional wrinkles now

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Speaker 2: because we have you know, Hollywood financier Stephen Paul, who

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Speaker 2: was rumored to be offering a three billion dollar steak

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Speaker 2: for you know, the National Amusement. So Sherry Redstone's controlling

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Speaker 2: stake in Paramount.

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Speaker 6: So who knows.

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Speaker 2: There have just been it's just been a whole roller

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Speaker 2: coaster with Paramount for the past so many months now,

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Speaker 2: so again, very hard to say it. Too many TWI

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Speaker 2: centurns in this drama and with.

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Speaker 3: Some key players, and ultimately it comes down to Sherry

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Speaker 3: Redstone and whether she prioritizes herself or in anyway some

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Speaker 3: of the non voting shareholders here, many of them being

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Speaker 3: value investors rather than growth investors. I think John Rodgers

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Speaker 3: from Aaron Investors, who's joined the show before to talk

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Speaker 3: about his frustration that the premium goes to the voting

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Speaker 3: holder rather than himself well, rather than long term investors

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Speaker 3: in the non voting shares. What do you think needs

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Speaker 3: to be articulated for the future of this business? Is

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Speaker 3: there a future of streaming for Paramount or broadly?

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Speaker 2: I mean that is a great question, Caroline, and I

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Speaker 2: think that is the question that you know, that's the

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Speaker 2: burning question right now. I mean, yes, with the with

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Speaker 2: the merger with Skydance, Paramount will still very much remain

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Speaker 2: a public company. You know, It's not like the Sony

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Speaker 2: deal where the company would just kind of disappear.

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Speaker 6: But the question is.

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Speaker 2: Does mergers do mergers really do anything?

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Speaker 6: Do they mean anything? I mean, we've seen this over

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Speaker 6: and over again.

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Speaker 2: Even with Viacom, the Viacom CBS combination which resulted in Paramount,

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Speaker 2: we've seen a destruction of something like about sixty percent valuation.

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Speaker 2: You know, it was over thirty billion market cap when

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Speaker 2: when they kind of recombined in twenty nineteen. Today it's

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Speaker 2: close to ten billions. So again, you know, none of

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Speaker 2: these mergers have really worked. You look at Warner Brothers

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Speaker 2: Discovery again, you know, a fiasco there. You again look

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Speaker 2: at Disney Fox. All of these mergers have kind of

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Speaker 2: really struggled. And so the question is do mergers really

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Speaker 2: solve the fundamental value? I mean, there is so much

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Speaker 2: of pressure, secular pressure in the linear TV ecosystem. So

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Speaker 2: again that's a question that remains to be answered and

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Speaker 2: we'll have to see how that, you know, kind of

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Speaker 2: plays out.

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Speaker 4: KEITHA.

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Speaker 5: Rangenefan and Bloomberg Intelligence really appreciate the analysis.

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Speaker 3: Thank you time now for talking tech. First up, Christie's

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Speaker 3: hackers who stole client data have failed to upload any

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Speaker 3: of that information to the dark web now. The hacking

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Speaker 3: group known as ransom Hub threatened for over a week

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Speaker 3: to release the stolen files on Monday, but there are

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Speaker 3: no signs that has occurred. The criminals said Christie's had

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Speaker 3: ceased communications after they had attempted to reach a quote

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Speaker 3: reasonable resolution seeking on cyber A cyber attack on Change

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Speaker 3: Healthcare is putting pressure on Washington Congress and the Biden

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Speaker 3: administration are stepping up efforts to better protect highly sensitive data.

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Speaker 6: From falling into the wrong hands.

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Speaker 3: Up to a third of Americans are said to have

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Speaker 3: had their private information exposed from the hack, and it's

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Speaker 3: cost United Health up to one point six billion dollars

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Speaker 3: in profits this year. And meanwhile, major hospitals in London

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Speaker 3: they've been thrown into chaos. According to the BBC, a

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Speaker 3: cyber attack on hospital's partnered with pathology services provider so

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Speaker 3: Novis caused operations to be canceled, patients to be diverted,

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Speaker 3: and deliveries to be rerouted. According to the Health Service Journal,

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Speaker 3: the system was victim to a ransom wear attack ed.

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Speaker 4: Okay, let's get back to that other big story.

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Speaker 5: Elon Musk, according to reports ordering and let's be honest

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Speaker 5: in Muskian style, may have exaggerated its procurement of AI

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Speaker 5: chips for use at Tesla in x More, Bloomberg's craggedel

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Speaker 5: joins us, this time from Detroit, his spiritual home. Some

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Speaker 5: breaking news Musk has taken to x You'll be surprised

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Speaker 5: to hear explaining that reports around him directing the shift

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Speaker 5: of h one hundreds that were destined from Tesla to x.

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Speaker 4: Or Xai were for a very.

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Speaker 5: Logical reason Tesla had nowhere to put them.

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Speaker 11: Craig, Yeah, it maybe stands to some reason ed because

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Speaker 11: you reported just in the last few weeks that Tesla

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Speaker 11: was running behind I'm building data centers. They're standing these

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Speaker 11: up in Buffalo and in Austin, Texas, where they have

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Speaker 11: their big factory. But this is a case still of,

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Speaker 11: you know, an indication within Navidia that's they're sort of

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Speaker 11: looking askance at some of the things that Musk has

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Speaker 11: been saying about a really important aspect of you know,

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Speaker 11: Tesla's business. This is, after all, sort of where he's

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Speaker 11: steering this company is to self driving and AI and

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Speaker 11: really trying to play up that aspect of what Tesla's

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Speaker 11: working on as the fundamental car business really is struggling

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Speaker 11: for the company. So for him to have to address

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Speaker 11: a report like this in the midst of you know,

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Speaker 11: a slowdown and EV demand and this big pivot that's

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Speaker 11: he's making toward AI and self driving development, it's not

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Speaker 11: particularly reassuring if you're a shareholder.

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Speaker 3: Particularly as we look towards June the thirteenth and that

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Speaker 3: all important shareholder vote where you a mask seems to

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Speaker 3: be threatening that, Look, if you're not going to give

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Speaker 3: me my payday, but you promised me several years ago,

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Speaker 3: maybe there's more interesting things to be done with AI

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Speaker 3: at different companies in Tesla.

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Speaker 11: Yeah, this reinforces that ultimatum that he gave back in

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Speaker 11: January that he wanted to essentially take his AI and

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Speaker 11: robotics work elsewhere, and we've already seen indications that you know,

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Speaker 11: he's he's sort of willing to follow through on that

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Speaker 11: threat that you know, if I don't control something like

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Speaker 11: twenty five percent of Tesla, I want to work on

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Speaker 11: this stuff at some of my other companies and with

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Speaker 11: any other CEO you know, that would maybe not necessarily

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Speaker 11: be taken seriously, it would potentially be viewed as a

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Speaker 11: veiled threat. But this this is after all, someone who

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Speaker 11: runs six companies and you know, has been standing up

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Speaker 11: an AI company and Xai that is, you know, closely

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Speaker 11: tied to x formerly known as Twitter, and does have

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Speaker 11: you know, a significant amount of work that it's trying

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Speaker 11: to do with you know, large language models and essentially

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Speaker 11: you know, trying to you know, build x up into

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Speaker 11: a company that was worth the investment that he and

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Speaker 11: some of his fellow stakeholders made in what was formerly Twitter.

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Speaker 3: About fully four billion got a few years ago. Craig Trudell,

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Speaker 3: thank you so much breaking it down. Welcome back to

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Speaker 3: Blombow Technology.

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Speaker 5: I'm Caroline heid in New York and I'm had Lovevote

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Speaker 5: in San Francisco.

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Speaker 4: A very quick check in on the markets.

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Speaker 5: We've got some economic data which has basically reinforced the

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Speaker 5: idea that the Federal Reserve will have room to cut

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Speaker 5: rates in the United States this year. And that's got

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Speaker 5: a lot of people doing the math on their technology

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Speaker 5: holdings and valuations. And a's that one hundred tech heavy

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Speaker 5: index a little bit softer the Socks or Philadelphia Semiconductor

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Speaker 5: Index is more markedly lower, down one point two percent.

442
00:22:45,160 --> 00:22:47,719
Speaker 5: In fact, only one out of the thirty names is

443
00:22:47,840 --> 00:22:49,919
Speaker 5: modestly in the green, and a big part of that

444
00:22:50,119 --> 00:22:53,720
Speaker 5: story is kind of what's going on over in Taiwan

445
00:22:53,840 --> 00:22:56,679
Speaker 5: at Computex. The main names that we're looking at throughout

446
00:22:56,680 --> 00:23:02,399
Speaker 5: the show are Intel and Envid. Actually Intel opened a

447
00:23:02,400 --> 00:23:04,080
Speaker 5: little bit higher in the session. You can see it's

448
00:23:04,080 --> 00:23:06,520
Speaker 5: now lower four tenths of a percent, in Vidia softer

449
00:23:06,600 --> 00:23:10,480
Speaker 5: by half percent, and things are heating up a little

450
00:23:10,520 --> 00:23:14,720
Speaker 5: bit between those names. Listen to Pat Gelsinger speaking overnight.

451
00:23:15,680 --> 00:23:18,240
Speaker 7: We're looking now to have a billion transistors on a

452
00:23:18,280 --> 00:23:23,000
Speaker 7: single ship and even looking to a trillion transistors in

453
00:23:23,040 --> 00:23:24,320
Speaker 7: a single package by.

454
00:23:24,200 --> 00:23:25,680
Speaker 4: The end of the jet of the decade.

455
00:23:26,000 --> 00:23:29,200
Speaker 7: And unlike what Johnson might have you believe Moore's law

456
00:23:29,440 --> 00:23:30,919
Speaker 7: is alive and well.

457
00:23:35,880 --> 00:23:40,359
Speaker 5: Mister Gelsinger calling out his industry friend and rival, mister

458
00:23:40,480 --> 00:23:44,160
Speaker 5: Juang at Computex's mister Wang also the other keynote speaker,

459
00:23:44,440 --> 00:23:46,159
Speaker 5: take a quick look again at Apple. I put that

460
00:23:46,200 --> 00:23:48,000
Speaker 5: in there because earlier in the show we talked about

461
00:23:48,000 --> 00:23:51,240
Speaker 5: this idea that in Vidia, which is lower in Apple

462
00:23:51,320 --> 00:23:54,040
Speaker 5: a little bit modesty lower is just a few percent

463
00:23:54,080 --> 00:23:58,560
Speaker 5: away from overtaking Apple five percent or so. And next

464
00:23:58,600 --> 00:24:01,240
Speaker 5: week's a big week, right, Karen, because we have WWDC

465
00:24:01,720 --> 00:24:04,000
Speaker 5: where we think we're going to get the AI story

466
00:24:04,119 --> 00:24:07,280
Speaker 5: finally from Apple and how it's going to work on

467
00:24:07,320 --> 00:24:08,480
Speaker 5: my iPhone and iOS.

468
00:24:09,080 --> 00:24:12,840
Speaker 3: Goldman Sachs saying, look, reiterating that by yesterday on the

469
00:24:12,840 --> 00:24:16,600
Speaker 3: optimism around WWDC, but has been a real improvement in

470
00:24:16,640 --> 00:24:19,359
Speaker 3: Apple's market capitalization of late. Let's just dig into it

471
00:24:19,400 --> 00:24:22,320
Speaker 3: all with Bloomberg's Jess mentioning Bloomberg Intelligence analysts and rag

472
00:24:22,400 --> 00:24:25,600
Speaker 3: Rana and just I want to go to you first

473
00:24:25,680 --> 00:24:28,439
Speaker 3: in terms of the context here, Apple was having a

474
00:24:28,600 --> 00:24:31,840
Speaker 3: pretty horrific twenty twenty four. Now it's broken back to

475
00:24:31,920 --> 00:24:34,800
Speaker 3: basically flat on the year, and there seems to be

476
00:24:34,840 --> 00:24:36,960
Speaker 3: this hope that it can get its AI narrative in gear.

477
00:24:37,280 --> 00:24:37,720
Speaker 6: That's right.

478
00:24:37,800 --> 00:24:41,320
Speaker 12: So we just saw Apple on Monday actually clause even

479
00:24:41,400 --> 00:24:43,400
Speaker 12: for the year after it did hit an all time

480
00:24:43,480 --> 00:24:45,719
Speaker 12: high back in December, so it actually entered a correction

481
00:24:45,840 --> 00:24:48,520
Speaker 12: technically ten percent off of that high back in March.

482
00:24:48,560 --> 00:24:51,080
Speaker 12: But then coming into the second quarter, we have seen

483
00:24:51,119 --> 00:24:53,720
Speaker 12: that stark recover pretty trendously. If you look at it's

484
00:24:53,760 --> 00:24:57,920
Speaker 12: April nineteenth low, it's up about eighteen percent in that span.

485
00:24:58,040 --> 00:25:00,320
Speaker 12: In some of the conversations I was having with Olio

486
00:25:00,359 --> 00:25:02,360
Speaker 12: managers coming into the second quarter, because of the big

487
00:25:02,440 --> 00:25:05,200
Speaker 12: run we saw an Nvidia stock in the first quarter,

488
00:25:05,240 --> 00:25:07,800
Speaker 12: and then when you prepare that against Apple relative to

489
00:25:07,840 --> 00:25:09,240
Speaker 12: the S and P five hundred, that was one of

490
00:25:09,240 --> 00:25:12,600
Speaker 12: its worst quarters this century coming out of the dot

491
00:25:12,680 --> 00:25:13,120
Speaker 12: com bus.

492
00:25:13,240 --> 00:25:14,440
Speaker 6: Whether or not there were.

493
00:25:14,320 --> 00:25:16,280
Speaker 12: Going to be positions where people were kind of flipping

494
00:25:16,359 --> 00:25:18,080
Speaker 12: some of the mag seven stocks there.

495
00:25:18,080 --> 00:25:19,600
Speaker 6: So you're starting to see a little bit of that.

496
00:25:19,800 --> 00:25:22,680
Speaker 12: But again, if you look at the top six stocks there,

497
00:25:22,720 --> 00:25:24,960
Speaker 12: if you take out Tesla because of the volatility, you

498
00:25:25,000 --> 00:25:27,439
Speaker 12: still see a record concentration there about thirty percent in

499
00:25:27,480 --> 00:25:30,000
Speaker 12: the S and P five hundred. But you are starting

500
00:25:30,000 --> 00:25:32,440
Speaker 12: to see more optimism in Apple's stock recovering.

501
00:25:32,480 --> 00:25:33,879
Speaker 10: And again a lot of that has to do not

502
00:25:34,000 --> 00:25:34,800
Speaker 10: just because we've.

503
00:25:34,640 --> 00:25:37,040
Speaker 12: Talked a lot about that record buy back historic program

504
00:25:37,040 --> 00:25:38,960
Speaker 12: that they had announced about a month ago, but then

505
00:25:39,000 --> 00:25:41,160
Speaker 12: also some of the easing tensions that you would think

506
00:25:41,160 --> 00:25:42,560
Speaker 12: some of the problems they would have had in China.

507
00:25:42,600 --> 00:25:47,440
Speaker 5: Caroline Anna rag Apple ended last week with its third

508
00:25:47,560 --> 00:25:53,840
Speaker 5: successive weekly gain from the Bloomberg Intelligence perspective on Apple,

509
00:25:54,280 --> 00:25:57,479
Speaker 5: how much we just treading water to WWDC and how

510
00:25:57,560 --> 00:25:58,720
Speaker 5: much are you hoping to learn?

511
00:26:00,119 --> 00:26:02,119
Speaker 13: Yeah, I think it is the change in sentiment on

512
00:26:02,160 --> 00:26:05,200
Speaker 13: Apple because of all we have heard about different things

513
00:26:05,240 --> 00:26:09,320
Speaker 13: Mark has reported on what could happen on WWDC, especially

514
00:26:09,400 --> 00:26:12,760
Speaker 13: a potential partnership with open Ai and maybe even Google.

515
00:26:12,960 --> 00:26:14,399
Speaker 4: So I think, I mean, it is.

516
00:26:14,280 --> 00:26:18,040
Speaker 13: A very important event for Apple, probably the most important

517
00:26:18,119 --> 00:26:21,439
Speaker 13: WWDC in a long time, because it really give us

518
00:26:21,440 --> 00:26:25,440
Speaker 13: some direction in which way the phones can grow, either

519
00:26:25,480 --> 00:26:28,200
Speaker 13: in the second half or next year, because so far

520
00:26:28,280 --> 00:26:31,240
Speaker 13: what we have seen and again sentiment aside, the numbers

521
00:26:31,280 --> 00:26:34,000
Speaker 13: have not gone up, you know, in the last two

522
00:26:34,080 --> 00:26:36,760
Speaker 13: years or so, numbers only being going downwards when it

523
00:26:36,800 --> 00:26:37,800
Speaker 13: comes to Apple.

524
00:26:39,240 --> 00:26:40,280
Speaker 4: Just throughout the year.

525
00:26:40,359 --> 00:26:45,479
Speaker 5: You've done some fantastic charting of Apple, charticles, chart focused work,

526
00:26:46,040 --> 00:26:48,640
Speaker 5: and we always used to refer to Apple as kind

527
00:26:48,680 --> 00:26:51,720
Speaker 5: of the most important waiting name on the S and

528
00:26:51,720 --> 00:26:54,080
Speaker 5: P five hundred. Now in video is kind of like, oh,

529
00:26:54,160 --> 00:26:57,080
Speaker 5: this is a macro level event. Everyone quick pay attention

530
00:26:57,160 --> 00:26:59,600
Speaker 5: to a video. How has your day to day changed

531
00:27:00,200 --> 00:27:01,640
Speaker 5: to how you cover those two names?

532
00:27:01,680 --> 00:27:05,119
Speaker 12: Well, I still feel, especially when I'm speaking with my sources,

533
00:27:05,280 --> 00:27:07,520
Speaker 12: that they do care about Apple because it's one of

534
00:27:07,520 --> 00:27:09,560
Speaker 12: those names, even though we saw its struggle at the

535
00:27:09,560 --> 00:27:12,600
Speaker 12: start of the year, because again with its buyback programs

536
00:27:12,600 --> 00:27:14,359
Speaker 12: and the funnel metals, and then of course it's cash

537
00:27:14,400 --> 00:27:17,359
Speaker 12: flow behind the company. For longer term portfolio managers, that

538
00:27:17,440 --> 00:27:19,960
Speaker 12: obviously is still going to be a key holding in there.

539
00:27:19,960 --> 00:27:22,639
Speaker 12: So it's more of the shorter term expectations there. But

540
00:27:22,640 --> 00:27:25,119
Speaker 12: if you look from a hedge fund perspective Goldman Sachs

541
00:27:25,240 --> 00:27:28,120
Speaker 12: Prime Brokerage Data where they analyze data from hedge funds,

542
00:27:28,160 --> 00:27:30,600
Speaker 12: they actually coming into the second quarter, they started trimming

543
00:27:30,600 --> 00:27:33,119
Speaker 12: their exposure to some of these big technology stocks, but

544
00:27:33,119 --> 00:27:36,200
Speaker 12: they were actually looking at more different types of AI plays,

545
00:27:36,560 --> 00:27:40,000
Speaker 12: like utilities. So we've seen that particular group, especially since

546
00:27:40,040 --> 00:27:42,480
Speaker 12: mid April, really take off and some of that. A

547
00:27:42,480 --> 00:27:44,840
Speaker 12: lot of times people think of it as low volatility

548
00:27:44,880 --> 00:27:46,639
Speaker 12: dived into type paying stocks and more of kind of

549
00:27:46,760 --> 00:27:48,520
Speaker 12: maybe a safe haven, but this seems to be more

550
00:27:48,520 --> 00:27:50,280
Speaker 12: of a play of a peek and rates, but then

551
00:27:50,359 --> 00:27:52,920
Speaker 12: also a little bit of that AI play there. But again,

552
00:27:52,920 --> 00:27:55,040
Speaker 12: if you're looking at Nvidia, I mean, coming into today

553
00:27:55,040 --> 00:27:57,159
Speaker 12: it was only about five percent away from trying to

554
00:27:57,160 --> 00:28:00,640
Speaker 12: catch up to Apple's micros market cap. But then also

555
00:28:00,680 --> 00:28:03,159
Speaker 12: Apple not too far away from three trillion again, so

556
00:28:03,160 --> 00:28:05,000
Speaker 12: if it does cross, that'll be the first time since

557
00:28:05,080 --> 00:28:08,280
Speaker 12: January since it's done so ed and just sticking on.

558
00:28:08,200 --> 00:28:11,200
Speaker 3: The Apple theme, And there was some reporting from other

559
00:28:11,400 --> 00:28:14,879
Speaker 3: outlets such as The Information talking about how maybe we

560
00:28:14,920 --> 00:28:18,679
Speaker 3: could have seen a deal for offering Apple TV plus

561
00:28:18,800 --> 00:28:22,639
Speaker 3: two China of all places, and just just mentioned this

562
00:28:22,760 --> 00:28:26,160
Speaker 3: the perhaps easing of tensions or people trying to understand

563
00:28:26,480 --> 00:28:29,040
Speaker 3: how the China US relationship impacts Apple.

564
00:28:29,359 --> 00:28:32,760
Speaker 6: What are you expected to hear on that in the future, Analog, Yeah.

565
00:28:32,600 --> 00:28:34,800
Speaker 13: So from a China is concerned, I think more than

566
00:28:34,840 --> 00:28:37,159
Speaker 13: these you know, the TV and the other things, I

567
00:28:37,200 --> 00:28:39,880
Speaker 13: think the rebound in iPhones what we heard in the

568
00:28:39,920 --> 00:28:43,400
Speaker 13: last couple of weeks is far more promising and encouraging

569
00:28:43,440 --> 00:28:46,360
Speaker 13: because there has been a big debate whether China is

570
00:28:46,400 --> 00:28:49,560
Speaker 13: a structural problem for Apple or it's a cyclical problem.

571
00:28:49,840 --> 00:28:52,400
Speaker 13: And the latest state of you know indicates at least

572
00:28:52,400 --> 00:28:54,840
Speaker 13: for now that Apple seeing a bounce back and people

573
00:28:54,920 --> 00:28:58,680
Speaker 13: going back and buying the iPhone instead of you know,

574
00:28:58,720 --> 00:29:01,240
Speaker 13: this particular argument that people don't want to buy Apple

575
00:29:01,280 --> 00:29:04,160
Speaker 13: products right now, so that's I think a bigger driver

576
00:29:04,400 --> 00:29:06,880
Speaker 13: for the change in sentiment when it comes to China.

577
00:29:08,400 --> 00:29:11,880
Speaker 5: Bloomberg's Jessmnton and Bloomberg Intelligence and list Ana rag Rana

578
00:29:11,960 --> 00:29:13,240
Speaker 5: terrific to catch up with you both.

579
00:29:13,240 --> 00:29:13,960
Speaker 4: Thank you very much.

580
00:29:14,040 --> 00:29:16,480
Speaker 5: Now coming up, we're going to be joined by Aru Matthew,

581
00:29:16,600 --> 00:29:21,280
Speaker 5: partner at Excel for his outlook on cybersecurity investing. That's

582
00:29:21,280 --> 00:29:34,960
Speaker 5: coming up next. This is Bloomberg Technology. It's time for

583
00:29:35,040 --> 00:29:38,160
Speaker 5: talking tech and first up. Cisco plans to invest one

584
00:29:38,200 --> 00:29:41,000
Speaker 5: billion dollars in startups that are working on what it

585
00:29:41,160 --> 00:29:45,320
Speaker 5: calls quote secure and reliable AI services as part of

586
00:29:45,320 --> 00:29:47,520
Speaker 5: a push to be a bigger player in AI. The

587
00:29:47,560 --> 00:29:50,520
Speaker 5: company says it's already committed about two hundred million dollars

588
00:29:50,520 --> 00:29:52,840
Speaker 5: of the money, and it's making investments in the likes

589
00:29:52,840 --> 00:29:55,320
Speaker 5: of Mistro AI and Scale AI.

590
00:29:55,680 --> 00:29:56,000
Speaker 4: Plus.

591
00:29:56,000 --> 00:29:59,520
Speaker 5: The Washington based lobbying group Ja Green Know for its

592
00:30:00,120 --> 00:30:04,400
Speaker 5: keevy client roster, including Palenteer in SpaceX, is raising one

593
00:30:04,440 --> 00:30:07,920
Speaker 5: hundred million dollars for a new VC fund alongside investment

594
00:30:08,000 --> 00:30:11,280
Speaker 5: firm and Zoo Partners, which laim to bank back tech

595
00:30:11,320 --> 00:30:15,600
Speaker 5: startups that support national Security and hack Loots, the London

596
00:30:15,600 --> 00:30:18,960
Speaker 5: based firm that's provided advice to companies and buyout firms

597
00:30:19,000 --> 00:30:22,120
Speaker 5: for nearly thirty years, is now building a presence in

598
00:30:22,240 --> 00:30:25,440
Speaker 5: Silicon Valley as a startup investor. The investment armor of

599
00:30:25,480 --> 00:30:28,600
Speaker 5: the firm has raised its first VC fund, surpassing a

600
00:30:28,680 --> 00:30:30,840
Speaker 5: target of fifty million dollars.

601
00:30:30,920 --> 00:30:33,200
Speaker 3: Carol, I nice VC round up there and let's stick

602
00:30:33,280 --> 00:30:34,200
Speaker 3: with venture capital.

603
00:30:34,360 --> 00:30:36,400
Speaker 6: Time for VC. Spotlight O own Matthew is with.

604
00:30:36,440 --> 00:30:39,760
Speaker 3: Us his partner and Accel of course is usually based

605
00:30:39,800 --> 00:30:42,120
Speaker 3: in SF. Is jended over here to New York's Tech

606
00:30:42,120 --> 00:30:45,920
Speaker 3: Week is upon us. But you're the focus of cybersecurity investments.

607
00:30:45,960 --> 00:30:46,440
Speaker 6: You've got a.

608
00:30:46,360 --> 00:30:48,440
Speaker 3: Lot of early money, early checks in some of the

609
00:30:48,520 --> 00:30:51,440
Speaker 3: key companies we think of when we associate with Accel

610
00:30:51,520 --> 00:30:54,520
Speaker 3: one pass where better cloud call like. Look, we've just

611
00:30:54,600 --> 00:30:57,520
Speaker 3: had a whole swathe of news of cyber issues today,

612
00:30:57,520 --> 00:30:59,400
Speaker 3: whether it be Christie's, whether it be hospitals and London

613
00:30:59,400 --> 00:31:02,680
Speaker 3: being effected. A companies getting that they need to invest

614
00:31:02,720 --> 00:31:03,600
Speaker 3: in their cyber right now.

615
00:31:04,360 --> 00:31:05,120
Speaker 14: I think they are.

616
00:31:05,400 --> 00:31:06,560
Speaker 4: But it's a hard problem.

617
00:31:06,800 --> 00:31:09,560
Speaker 14: You know, we've been investing in cyber for almost thirty

618
00:31:09,560 --> 00:31:12,040
Speaker 14: of the forty years that Excel has been around, we've

619
00:31:12,080 --> 00:31:15,560
Speaker 14: invested in seventy five companies, over two billion dollars Across

620
00:31:15,560 --> 00:31:19,560
Speaker 14: those seventy five companies, forty active investments across every major

621
00:31:19,600 --> 00:31:22,640
Speaker 14: category of cyber So we have a pretty good view

622
00:31:22,680 --> 00:31:25,440
Speaker 14: of what's happening in the cyber landscape. But the threats

623
00:31:25,440 --> 00:31:28,239
Speaker 14: are getting more and more extreme and more severe, and

624
00:31:28,280 --> 00:31:30,400
Speaker 14: so it's a bit of a cat and mouse game.

625
00:31:30,880 --> 00:31:33,080
Speaker 4: You level up, you try to defend yourself.

626
00:31:33,480 --> 00:31:36,920
Speaker 14: Hackers level up as well, and so there's this dynamic

627
00:31:36,960 --> 00:31:40,440
Speaker 14: between hackers and defending against it that's just really difficult.

628
00:31:40,640 --> 00:31:43,840
Speaker 3: Artificial intelligence making everyone level up.

629
00:31:44,320 --> 00:31:46,120
Speaker 14: It is, and it's being used on both sides of

630
00:31:46,160 --> 00:31:48,280
Speaker 14: the game, on both the hacker side and on the

631
00:31:48,280 --> 00:31:51,080
Speaker 14: defense side. But I do think that we are in

632
00:31:51,120 --> 00:31:54,040
Speaker 14: a promising early stages of AI and the application of

633
00:31:54,080 --> 00:31:57,320
Speaker 14: AI across a number of dimensions, particularly in cyber and

634
00:31:57,360 --> 00:32:00,640
Speaker 14: so we're really excited about what AI can do on

635
00:32:00,760 --> 00:32:03,600
Speaker 14: the defense side in particular, and.

636
00:32:03,520 --> 00:32:06,560
Speaker 5: We've talked a lot about the idea that the generative

637
00:32:06,560 --> 00:32:11,240
Speaker 5: AI tools available to play defense are equally as available

638
00:32:11,320 --> 00:32:14,080
Speaker 5: to the threat actors. Right those that are posing a

639
00:32:14,120 --> 00:32:18,040
Speaker 5: threat from a cybersecurity perspective. With that in mind, what's

640
00:32:18,080 --> 00:32:22,640
Speaker 5: the strategy you know, seed through to growth stage in

641
00:32:22,680 --> 00:32:24,240
Speaker 5: where you guys deploy capital.

642
00:32:25,240 --> 00:32:28,480
Speaker 14: Well, for a lot of our companies, they serve companies

643
00:32:28,480 --> 00:32:31,840
Speaker 14: of all types. Enterprises in particular have gotten the message

644
00:32:31,840 --> 00:32:35,240
Speaker 14: at cyber is extremely important for them and they're investing heavily.

645
00:32:35,600 --> 00:32:38,880
Speaker 14: We're also investing behind companies that are attacking or that

646
00:32:38,920 --> 00:32:41,080
Speaker 14: are that are in the mid market and the longer

647
00:32:41,120 --> 00:32:44,400
Speaker 14: tail of SMBs. We they address a lot of cyber

648
00:32:44,440 --> 00:32:47,600
Speaker 14: companies address these companies through what's called the MSP channel,

649
00:32:47,600 --> 00:32:50,800
Speaker 14: the managed service provider channel, and so we're investors in

650
00:32:50,840 --> 00:32:54,880
Speaker 14: a company called Blackpoint Cyber that addresses these companies that

651
00:32:54,920 --> 00:32:58,040
Speaker 14: are sort of underserved. And so whether you're a growth

652
00:32:58,120 --> 00:33:01,240
Speaker 14: company or you're an early stage startup, cyber is critical.

653
00:33:01,560 --> 00:33:04,600
Speaker 14: Many of these companies are hiring security talent and CISOs

654
00:33:04,640 --> 00:33:08,200
Speaker 14: at the very inception of those of their journeys, and

655
00:33:08,280 --> 00:33:10,800
Speaker 14: it's a problem that's being felt across the industry.

656
00:33:12,160 --> 00:33:12,920
Speaker 4: A lot of what I.

657
00:33:12,800 --> 00:33:15,680
Speaker 5: Hear from founders CEOs could be a company or set

658
00:33:15,760 --> 00:33:19,360
Speaker 5: up of any size, is that they probably didn't think

659
00:33:19,400 --> 00:33:23,000
Speaker 5: as much about their software and hardware infrastructure as they

660
00:33:23,000 --> 00:33:26,560
Speaker 5: should have done because of the pandemic, right they had

661
00:33:26,600 --> 00:33:31,280
Speaker 5: a flexible working policy, they had to change sometimes to

662
00:33:31,280 --> 00:33:34,200
Speaker 5: being fully remote, and that in some cases can make

663
00:33:34,240 --> 00:33:37,760
Speaker 5: them vulnerable. Is there an opportunity for you guys.

664
00:33:37,480 --> 00:33:39,480
Speaker 4: In that absolutely?

665
00:33:39,640 --> 00:33:43,840
Speaker 14: The concept of where you sit used to twenty years ago,

666
00:33:43,960 --> 00:33:47,240
Speaker 14: used to go into an office, use a company issued machine,

667
00:33:47,520 --> 00:33:48,280
Speaker 14: a company issue.

668
00:33:48,320 --> 00:33:49,320
Speaker 4: They will do every day.

669
00:33:49,360 --> 00:33:52,560
Speaker 5: I own every day, phone days a week, most days

670
00:33:52,560 --> 00:33:53,640
Speaker 5: of the year, keep going.

671
00:33:54,320 --> 00:33:57,360
Speaker 14: A large percentage of knowledge workers today are working from

672
00:33:57,400 --> 00:34:00,280
Speaker 14: home and they're never going back into the office. And

673
00:34:00,360 --> 00:34:03,640
Speaker 14: so how do you protect across their personal devices and

674
00:34:03,720 --> 00:34:07,360
Speaker 14: their enterprise their laptop issued through work. And so we're

675
00:34:07,360 --> 00:34:10,279
Speaker 14: seeing a number of solutions such as one password that

676
00:34:10,320 --> 00:34:14,200
Speaker 14: are being deployed across every device, across every login, across

677
00:34:14,280 --> 00:34:17,960
Speaker 14: every application to ensure full coverage. And I think that's

678
00:34:18,000 --> 00:34:21,160
Speaker 14: where the world is moving, that security has to protect

679
00:34:21,239 --> 00:34:23,839
Speaker 14: you in your personal and your professional life, not just

680
00:34:23,920 --> 00:34:25,279
Speaker 14: one phase or dimension of it.

681
00:34:25,680 --> 00:34:28,040
Speaker 3: I asked you at this start whether companies are getting

682
00:34:28,040 --> 00:34:31,239
Speaker 3: with a program, But ultimately this is about me. You

683
00:34:31,760 --> 00:34:34,879
Speaker 3: the consumer are kids eventually realizing that to have two

684
00:34:35,320 --> 00:34:38,840
Speaker 3: factor authentication, if not better, is the consumer getting with

685
00:34:38,880 --> 00:34:39,520
Speaker 3: the program?

686
00:34:40,120 --> 00:34:41,920
Speaker 14: I think they're getting there, but I think they're getting

687
00:34:41,920 --> 00:34:44,879
Speaker 14: there a little slower. You know, there's always a little

688
00:34:44,920 --> 00:34:47,960
Speaker 14: bit of a delay in terms of the consumer understanding it.

689
00:34:48,239 --> 00:34:50,720
Speaker 14: But these hacks are getting, as you said at the beginning,

690
00:34:51,120 --> 00:34:53,360
Speaker 14: more and more severe, they're getting more and more public,

691
00:34:53,680 --> 00:34:56,239
Speaker 14: and so whether it's ticket Master or a number of

692
00:34:56,239 --> 00:35:01,000
Speaker 14: consumer applications, I think people are starting to get the message.

693
00:35:01,040 --> 00:35:04,920
Speaker 5: Are in where is the innovation in cybersecurity technology happening?

694
00:35:06,040 --> 00:35:09,600
Speaker 14: I see it happening across the number of dimensions, you know,

695
00:35:09,840 --> 00:35:12,880
Speaker 14: the zeitgeist, tech media, vcs. We're all talking about AI,

696
00:35:13,560 --> 00:35:16,400
Speaker 14: but AI is only applicable if you have good data,

697
00:35:16,880 --> 00:35:19,800
Speaker 14: and so we're seeing a number of opportunities in data security,

698
00:35:19,840 --> 00:35:23,560
Speaker 14: in particular understanding the provenance of the data, the quality

699
00:35:23,600 --> 00:35:27,000
Speaker 14: of the data, where that data goes. Understanding that is

700
00:35:27,080 --> 00:35:30,080
Speaker 14: really critical to having a robust security strategy. So we're

701
00:35:30,120 --> 00:35:32,640
Speaker 14: investing pretty heavily there. If you look at a lot

702
00:35:32,680 --> 00:35:37,280
Speaker 14: of these hacks, identity is the core of why identity

703
00:35:37,280 --> 00:35:39,920
Speaker 14: base vulnerabilities are the core of why these hacks are

704
00:35:39,960 --> 00:35:43,719
Speaker 14: happening for the vast majority of these cyber attacks, and

705
00:35:43,760 --> 00:35:47,280
Speaker 14: so we're investing pretty heavily in identity. The MSP channel,

706
00:35:47,320 --> 00:35:49,879
Speaker 14: as I mentioned earlier, is a big opportunity to make

707
00:35:49,880 --> 00:35:53,879
Speaker 14: sure that security is democratized for everyone. And I think

708
00:35:53,880 --> 00:35:56,040
Speaker 14: the last one, you know, we invested in CrowdStrike in

709
00:35:56,080 --> 00:35:59,760
Speaker 14: twenty thirteen. It was an early investment for us. Endpoint

710
00:35:59,800 --> 00:36:02,480
Speaker 14: was in its an decency then, but it's really exploded

711
00:36:02,520 --> 00:36:04,240
Speaker 14: a lot of the themes that we just talked about

712
00:36:04,400 --> 00:36:07,399
Speaker 14: of having devices, mobile phones, laptops at home and at

713
00:36:07,440 --> 00:36:10,880
Speaker 14: work are really important and CrowdStrike protects those things. And

714
00:36:11,000 --> 00:36:14,880
Speaker 14: so the endpoint in particular and extending into a number

715
00:36:14,920 --> 00:36:17,919
Speaker 14: of other categories is where we're seeing an opportunity as well.

716
00:36:19,280 --> 00:36:22,320
Speaker 5: Excel partner Haru Matthew Triffings have you on the program,

717
00:36:22,480 --> 00:36:34,080
Speaker 5: Thank you very much. Going viral and trending across social

718
00:36:34,120 --> 00:36:39,239
Speaker 5: media and search, India's national elections voting chain coverage sits

719
00:36:39,320 --> 00:36:42,120
Speaker 5: high up on Google real time and daily search trends

720
00:36:42,120 --> 00:36:45,600
Speaker 5: globally is Tally's signal that Prime Minister and Narrendra Moody's

721
00:36:45,680 --> 00:36:49,440
Speaker 5: ruling party was struggling to win a majority of seats.

722
00:36:49,480 --> 00:36:52,440
Speaker 5: The race was also being discussed on x and LinkedIn

723
00:36:52,800 --> 00:36:55,560
Speaker 5: as Modi vowed to carry on as Prime Minister but

724
00:36:55,680 --> 00:36:58,360
Speaker 5: he and his ruling party will likely be forced to

725
00:36:58,400 --> 00:37:01,760
Speaker 5: rely on allies and other parts parties to form a government.

726
00:37:01,920 --> 00:37:06,040
Speaker 5: In markets, India stock market plummeted, raising three hundred and

727
00:37:06,080 --> 00:37:10,160
Speaker 5: eighty six billion dollars in market value. Mody had appealed

728
00:37:10,200 --> 00:37:12,960
Speaker 5: to India's one point four billion people with a package

729
00:37:12,960 --> 00:37:16,560
Speaker 5: of business friendly policies. His BJP party was leading in

730
00:37:16,600 --> 00:37:19,439
Speaker 5: two hundred and forty seats, short of the two hundred

731
00:37:19,480 --> 00:37:22,360
Speaker 5: and seventy two needed to form a government and well

732
00:37:22,360 --> 00:37:24,600
Speaker 5: behind the three hundred and three to one in the

733
00:37:24,640 --> 00:37:26,439
Speaker 5: twenty nineteen election.

734
00:37:26,440 --> 00:37:30,799
Speaker 3: Cat big market impact. Meanwhile, let's turn our attention back

735
00:37:30,800 --> 00:37:32,960
Speaker 3: to New York Tech Week. It's officially kicked off right

736
00:37:32,960 --> 00:37:35,280
Speaker 3: here in the big Apple ed and look. Industry titans

737
00:37:35,280 --> 00:37:38,240
Speaker 3: are here, startups gathering throughout the week for events, for panels,

738
00:37:38,280 --> 00:37:41,320
Speaker 3: for conversations for your party. Now all week long on

739
00:37:41,320 --> 00:37:44,000
Speaker 3: blieonbag technology, We're going to be speaking with those founders,

740
00:37:44,000 --> 00:37:47,080
Speaker 3: with those investors and executives to talk about the ecosystem

741
00:37:47,080 --> 00:37:49,640
Speaker 3: here in New York City and look why they choose

742
00:37:49,680 --> 00:37:51,600
Speaker 3: to make it home and police. Now say we've got Ben,

743
00:37:51,680 --> 00:37:55,320
Speaker 3: there's managing partner at a hippo of course long time

744
00:37:55,400 --> 00:37:59,880
Speaker 3: focus of VC, of media, of digital built here.

745
00:37:59,719 --> 00:38:01,760
Speaker 6: In New York. But you've been writing some checks.

746
00:38:01,840 --> 00:38:04,480
Speaker 3: Not all of the companies are New York City based.

747
00:38:04,640 --> 00:38:06,960
Speaker 3: What is your view on allocating capital here?

748
00:38:07,000 --> 00:38:10,600
Speaker 15: Ben, Yeah, well thanks for having me. You know, we

749
00:38:10,640 --> 00:38:14,160
Speaker 15: are longtime New York believers. I grew up in New York.

750
00:38:14,480 --> 00:38:16,839
Speaker 15: We started the Fund in New York. Everyone employed by

751
00:38:16,840 --> 00:38:19,759
Speaker 15: the Fund is here, and we've been investing in this

752
00:38:19,760 --> 00:38:22,839
Speaker 15: ecosystem for a long time, far before it was it

753
00:38:22,880 --> 00:38:26,600
Speaker 15: was cool. And you know, more than half the checks

754
00:38:26,600 --> 00:38:29,239
Speaker 15: we write are to New York founders. But you know,

755
00:38:29,239 --> 00:38:31,719
Speaker 15: in many ways the world has gotten smaller, and obviously

756
00:38:31,760 --> 00:38:34,880
Speaker 15: with COVID and sort of the move to everyone getting

757
00:38:34,880 --> 00:38:39,720
Speaker 15: comfortable zooming for three quarters of their life, we find.

758
00:38:39,560 --> 00:38:42,040
Speaker 1: Ourselves investing in people all over the place. But we

759
00:38:42,120 --> 00:38:42,600
Speaker 1: really do.

760
00:38:43,480 --> 00:38:46,160
Speaker 15: We think we have our sort of strongest competitive advantage

761
00:38:46,239 --> 00:38:48,839
Speaker 15: investing here in New York and our community is centered here.

762
00:38:49,440 --> 00:38:49,760
Speaker 6: Ben.

763
00:38:50,080 --> 00:38:52,839
Speaker 3: One might always say, oh, I can see media being here,

764
00:38:52,920 --> 00:38:56,600
Speaker 3: fintech being here, But you've been allocating money to Caldeen Biotech,

765
00:38:56,840 --> 00:38:59,880
Speaker 3: which is I think Brooklyn based company. You're doing footprint,

766
00:39:00,000 --> 00:39:03,360
Speaker 3: which is all about well onboarding of people and knowing

767
00:39:03,520 --> 00:39:08,600
Speaker 3: KYC what is working here from an industry vertical perspective.

768
00:39:09,320 --> 00:39:11,799
Speaker 15: Yeah, So you know, when we started investing in New

769
00:39:11,880 --> 00:39:14,640
Speaker 15: York fifteen years ago, it really was a consumer market

770
00:39:14,680 --> 00:39:17,720
Speaker 15: and so a ton happening in media, a lot happening

771
00:39:17,880 --> 00:39:20,440
Speaker 15: in commerce and sort of commerce adjacent markets.

772
00:39:22,080 --> 00:39:23,240
Speaker 1: That has changed.

773
00:39:23,360 --> 00:39:25,920
Speaker 15: And so I think it really started with Google and

774
00:39:25,960 --> 00:39:29,439
Speaker 15: Facebook and sort of big tech building large offices here

775
00:39:29,480 --> 00:39:32,520
Speaker 15: back in twenty thirteen, twenty fourteen, that you saw the

776
00:39:32,560 --> 00:39:34,239
Speaker 15: markets start to shift and you saw a sort of

777
00:39:34,280 --> 00:39:37,600
Speaker 15: real ennge talent come into the New York ecosystem that

778
00:39:37,840 --> 00:39:41,920
Speaker 15: has only continued. And so I really believe today you

779
00:39:41,920 --> 00:39:44,000
Speaker 15: can build any kind of company in New York.

780
00:39:44,840 --> 00:39:47,120
Speaker 1: There is all different sorts of talent here.

781
00:39:47,880 --> 00:39:50,120
Speaker 15: And you know, I think anything that New York sort

782
00:39:50,160 --> 00:39:52,080
Speaker 15: of decides it wants to be great at, it ultimately

783
00:39:52,160 --> 00:39:53,719
Speaker 15: finds a way to be great at. And so there

784
00:39:53,719 --> 00:39:57,319
Speaker 15: are there's pockets of value all over the place. And

785
00:39:57,960 --> 00:40:01,040
Speaker 15: you know, I will always think, or so far in

786
00:40:01,040 --> 00:40:02,640
Speaker 15: my career, I have always thought that New York is

787
00:40:02,680 --> 00:40:04,200
Speaker 15: the perfect place to build a company.

788
00:40:05,200 --> 00:40:08,400
Speaker 5: Ben how strong and how important are the base of

789
00:40:08,440 --> 00:40:11,200
Speaker 5: academic institutions out on the East Coast for.

790
00:40:11,239 --> 00:40:16,120
Speaker 15: You, Well, I think that the ivs and sort of

791
00:40:16,160 --> 00:40:18,839
Speaker 15: like the large you know, there's a bunch of undergraduate

792
00:40:19,040 --> 00:40:23,520
Speaker 15: institutions and graduate schools sort of throughout the Northeast that

793
00:40:23,880 --> 00:40:26,440
Speaker 15: send a ton of students to New York, and so

794
00:40:27,280 --> 00:40:30,840
Speaker 15: I think that those are incredibly important. Interestingly, now, I

795
00:40:30,840 --> 00:40:34,840
Speaker 15: think last year more Stanford Business School students came to

796
00:40:34,880 --> 00:40:37,359
Speaker 15: New York than to San Francisco for the first time ever.

797
00:40:37,920 --> 00:40:40,160
Speaker 15: And so it's not just the New York schools that

798
00:40:40,360 --> 00:40:45,920
Speaker 15: matriculate here, but that's really important. Obviously, you have Columbian

799
00:40:46,040 --> 00:40:49,000
Speaker 15: NYU and Cornell's Tech School and lots of sort of

800
00:40:49,320 --> 00:40:52,080
Speaker 15: schools within the city, which is great, But New York

801
00:40:52,120 --> 00:40:55,520
Speaker 15: is a feeder for all different kinds of institutions throughout

802
00:40:55,560 --> 00:40:56,000
Speaker 15: the country.

803
00:40:56,000 --> 00:40:59,279
Speaker 5: At this point, if there are three main advantages of

804
00:40:59,400 --> 00:41:02,400
Speaker 5: three big straws for New York City, what are they.

805
00:41:02,280 --> 00:41:02,760
Speaker 4: Ben.

806
00:41:04,480 --> 00:41:07,439
Speaker 15: Well, I think it's the you know, in many ways,

807
00:41:07,440 --> 00:41:10,920
Speaker 15: New York is the center of the sort of economic world.

808
00:41:11,040 --> 00:41:13,279
Speaker 15: I mean, this is the you know, this is the

809
00:41:13,400 --> 00:41:17,600
Speaker 15: number one place that business has done globally and certainly

810
00:41:17,640 --> 00:41:18,480
Speaker 15: in the United States.

811
00:41:19,200 --> 00:41:22,760
Speaker 1: So that's one. Two. New York is a really diverse

812
00:41:22,760 --> 00:41:24,120
Speaker 1: and interesting place with.

813
00:41:25,600 --> 00:41:27,759
Speaker 15: Just like it's a fascinating place to live, and so

814
00:41:27,880 --> 00:41:30,879
Speaker 15: lots of interesting, fascinating smart people want to be here,

815
00:41:30,920 --> 00:41:32,080
Speaker 15: which is really appealing.

816
00:41:33,560 --> 00:41:37,560
Speaker 1: And three litre hippo is here. So come on, what

817
00:41:37,640 --> 00:41:38,160
Speaker 1: can I say?

818
00:41:39,200 --> 00:41:41,520
Speaker 3: I like that last one, Ben, We've got to shout

819
00:41:41,520 --> 00:41:43,640
Speaker 3: out the food and many other things that are here.

820
00:41:44,560 --> 00:41:46,759
Speaker 3: But aside from that, look, we can put all like

821
00:41:47,200 --> 00:41:50,560
Speaker 3: you know, rainbows and butterflies around New York, but not

822
00:41:50,680 --> 00:41:54,239
Speaker 3: all of it has upside. It's expensive to live sometimes,

823
00:41:54,320 --> 00:41:55,919
Speaker 3: you know, we get a bit hard around the edges

824
00:41:55,920 --> 00:41:56,560
Speaker 3: when we live here.

825
00:41:56,560 --> 00:41:56,759
Speaker 5: Ben.

826
00:41:56,840 --> 00:41:59,560
Speaker 3: But what from your perspective are you see in terms

827
00:41:59,600 --> 00:42:02,840
Speaker 3: of the ferocity of competition to allocate money here? Is

828
00:42:02,840 --> 00:42:04,840
Speaker 3: it hard to allocate checks right now? Are you getting

829
00:42:04,840 --> 00:42:05,520
Speaker 3: bean out of them?

830
00:42:06,440 --> 00:42:06,600
Speaker 1: Yes?

831
00:42:06,719 --> 00:42:09,080
Speaker 15: So this is a different market than it was when

832
00:42:09,080 --> 00:42:11,960
Speaker 15: we started investing. There was a handful of sort of

833
00:42:12,120 --> 00:42:15,920
Speaker 15: institutional firms that were deploying into early stage venture when

834
00:42:15,920 --> 00:42:19,600
Speaker 15: we got started. Today you have a ton of emerging managers,

835
00:42:19,640 --> 00:42:22,160
Speaker 15: You have a handful of funds that look like us,

836
00:42:22,200 --> 00:42:25,360
Speaker 15: that are really sort of true New York committed long

837
00:42:25,440 --> 00:42:28,799
Speaker 15: term institutions. And you now have a bunch of large

838
00:42:28,880 --> 00:42:31,560
Speaker 15: multi stage firms, many of which are sort of West

839
00:42:31,560 --> 00:42:34,200
Speaker 15: Coast based, that have built satellite offices here, and so

840
00:42:35,360 --> 00:42:38,200
Speaker 15: there's many more options in terms of where founders can

841
00:42:38,239 --> 00:42:38,959
Speaker 15: go to raise money.

842
00:42:39,000 --> 00:42:42,919
Speaker 1: I still think that there are not a ton of.

843
00:42:42,840 --> 00:42:46,279
Speaker 15: Really high quality, truly New York focused funds that sort

844
00:42:46,320 --> 00:42:49,960
Speaker 15: of have their best talent here and have the kind

845
00:42:50,000 --> 00:42:50,839
Speaker 15: of vibrant.

846
00:42:50,480 --> 00:42:55,680
Speaker 1: Communities that we do and some peers do. But there's

847
00:42:56,000 --> 00:42:57,680
Speaker 1: way more talent these days.

848
00:42:57,719 --> 00:43:00,520
Speaker 15: There's just more talented folks who are starting businesses and

849
00:43:00,600 --> 00:43:01,520
Speaker 15: growing businesses.

850
00:43:01,920 --> 00:43:04,839
Speaker 3: And so wrap it up there, I'm a Fray Brandy.

851
00:43:05,320 --> 00:43:07,239
Speaker 3: We thank you so much of Leir Hippo. This is

852
00:43:07,280 --> 00:43:08,240
Speaker 3: Bloomberg Technology