WEBVTT - Tesla's Price Drop and Netflix's Earnings 0:00:01.680 --> 0:00:05.080 From Mahart that we're Innovation of Money and Power Collie 0:00:05.280 --> 0:00:06.960 in Silicon Valley, NBN. 0:00:07.320 --> 0:00:11.360 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.360 --> 0:00:27.920 I'm Caroline Hyde at Bloomberg's World headquarters in New York, 0:00:28.080 --> 0:00:29.200 ed on assignment today. 0:00:29.600 --> 0:00:32.400 This is Bloomberg Technology. Today. 0:00:32.640 --> 0:00:35.479 We dive into Teza's drop in car prices ahead of 0:00:35.479 --> 0:00:39.239 tonight's earnings report. It's how the cut and Price is 0:00:39.280 --> 0:00:42.800 now making the modern wine nearly thirty percent cheaper this year. 0:00:42.960 --> 0:00:43.200 Plus. 0:00:43.280 --> 0:00:46.280 Netflix falls off the missing subscriber growth estimates, but points 0:00:46.280 --> 0:00:48.560 to its passwords sharing crackdown as. 0:00:48.400 --> 0:00:49.240 A saving grace. 0:00:49.600 --> 0:00:52.839 And despite all the concerns over privacy, people are getting 0:00:52.920 --> 0:00:57.000 extremely personal the chatch ept as some turned to it 0:00:57.160 --> 0:00:59.600 for therapy. We discussed but first that's check in on 0:00:59.640 --> 0:01:02.520 these markss and nervousness once again around some of the 0:01:02.520 --> 0:01:04.120 big earnings that come in a little bit drab. 0:01:04.160 --> 0:01:04.920 We look at Mongo sally. 0:01:04.920 --> 0:01:06.440 We're going to dig into the likes of Netflix in 0:01:06.480 --> 0:01:08.600 a moment, but we're also still thinking about what the 0:01:08.640 --> 0:01:11.480 Federal Reserve, what global central banks have to do to 0:01:11.560 --> 0:01:14.040 tackle inflation still running hot in the UK, nawslack off 0:01:14.080 --> 0:01:16.920 by tenth five percent two year yield, which reflects, of course, 0:01:16.920 --> 0:01:20.080 concerns about interest rate hikes, up almost seven basis points 0:01:20.080 --> 0:01:20.520 on the day. 0:01:20.640 --> 0:01:21.200 We're looking at the. 0:01:21.240 --> 0:01:24.840 Vixendex though still well low, we're sub seventeen, so that 0:01:24.880 --> 0:01:27.600 anxiety not really playing into some of those fear indices 0:01:27.640 --> 0:01:30.000 as they're known flicking on. Let's look at this fear 0:01:30.000 --> 0:01:33.000 indext because we are seeing some nervousness around the riskier 0:01:33.040 --> 0:01:35.560 assets such as crypto. After what has been a phenomenal 0:01:35.600 --> 0:01:37.399 run up in bitcoin, we are seeing it just off 0:01:37.440 --> 0:01:40.240 about three point seven percent on the day, twenty nine thousands, 0:01:40.240 --> 0:01:42.360 where we're at so sub that thirty thousand level. But 0:01:42.400 --> 0:01:43.720 I'm pleased to say to dig into some of the 0:01:43.760 --> 0:01:45.800 micro moves on the day is pretty Gupta. 0:01:45.880 --> 0:01:48.360 She's here for well, talk us through some of those moves. 0:01:48.480 --> 0:01:50.120 Yeah. Well, I think the big one at Caroline is 0:01:50.120 --> 0:01:52.200 going to be those Netflix there shares. You are seeing 0:01:52.200 --> 0:01:54.360 them really plumbing here down about three point two percent 0:01:54.400 --> 0:01:57.200 after reporting those earnings after the bell yesterday. Look, Netflix 0:01:57.200 --> 0:02:00.360 thought they would increase your subscriber account by really cracking 0:02:00.440 --> 0:02:03.400 down on the password chairing. The exact opposite has happened. 0:02:03.400 --> 0:02:06.200 Remember last quarter, a big focus was not necessarily on 0:02:06.240 --> 0:02:08.959 the domestic, but on the international. Their biggest increase in 0:02:09.000 --> 0:02:11.720 their subscriber account last quarter came from India, and this 0:02:11.760 --> 0:02:14.480 time around they're really talking about that expansion. That international 0:02:14.520 --> 0:02:17.600 expansion continuing. Latin America would be really coming into focus 0:02:17.639 --> 0:02:19.840 with right now the opposite effect when it comes to 0:02:19.880 --> 0:02:21.960 that Password Chairing shares are down about three point two 0:02:21.960 --> 0:02:24.400 percent on the day. Not the only company that came 0:02:24.440 --> 0:02:27.640 out with earnings though, ASML, the Dutch semis equipment maker, 0:02:27.880 --> 0:02:30.000 coming out as well and talking about just how worried 0:02:30.040 --> 0:02:32.200 they are about the chip space right now. Look, you 0:02:32.280 --> 0:02:34.959 are also seeing earlier this week that TSMC, one of 0:02:35.000 --> 0:02:37.880 the biggest players in the chip space, talking about cutting 0:02:37.880 --> 0:02:40.400 capex because maybe the demand just doesn't support how much 0:02:40.400 --> 0:02:44.000 supply is needed. But also less supply also means higher prices. Nevertheless, 0:02:44.000 --> 0:02:46.440 if you are producing less, that is not such great 0:02:46.480 --> 0:02:51.320 news for an equipment maker like ASML. Nevertheless, chories like that, 0:02:51.360 --> 0:02:53.480 pushing those shares down about three percent. We got to 0:02:53.480 --> 0:02:56.000 go international, though, keep it international. Ali Baba as well, 0:02:56.160 --> 0:02:58.200 coming out and actually saying well, they might spin off 0:02:58.360 --> 0:03:01.079 a part of their grocery business into a fresh IPO, 0:03:01.200 --> 0:03:04.160 something that was not well received by investors, not really 0:03:04.160 --> 0:03:06.200 weighing the shares down to the tune about two percent 0:03:06.240 --> 0:03:09.040 even in the eighty rs stateside. But Caroline, let's push 0:03:09.040 --> 0:03:10.880 it ahead because after the bell is where all the 0:03:10.919 --> 0:03:13.840 action is in the tech space. Tesla reporting earnings, it's 0:03:13.880 --> 0:03:15.560 all about what they're going to do with deliveries at 0:03:15.600 --> 0:03:18.000 the same time that they are talking about price cuts 0:03:18.000 --> 0:03:20.519 as well. In today we are down one point six percent. 0:03:20.800 --> 0:03:23.520 Crazy the perfect roundup. We thank you, Critty, go up 0:03:23.520 --> 0:03:26.200 to there. Let's dig in on the Tesla perspective now 0:03:26.280 --> 0:03:28.360 the price cuts, the look ahead today's earnings. 0:03:28.560 --> 0:03:29.280 Let's bring in the. 0:03:29.240 --> 0:03:32.480 One I know, any Danah Hall before the storm of earnings, 0:03:32.520 --> 0:03:34.640 you sit down with us just to talk through some 0:03:34.760 --> 0:03:37.360 of the price cuts. I mean these are really now 0:03:37.400 --> 0:03:39.520 adding up well thirty percent off of over why. 0:03:40.720 --> 0:03:41.400 Yeah, and the model. 0:03:41.440 --> 0:03:43.920 Why is Tesla's most important car right now in terms 0:03:43.920 --> 0:03:46.880 of volume? And you know Elon Musk signaled at the 0:03:46.960 --> 0:03:48.680 end of last year that he was going to chase 0:03:48.840 --> 0:03:52.760 volume over profit margins. And today we're going to figure out, well, 0:03:52.880 --> 0:03:54.880 what is the impact of that. I mean, when you 0:03:55.000 --> 0:03:56.880 when you have price cuts, you know, as many of 0:03:56.880 --> 0:03:58.880 the days as they've had since the beginning of the year. 0:03:58.880 --> 0:04:01.240 That really does begin to eat into your profit margins. 0:04:01.520 --> 0:04:03.040 At the same time, you have to remember that the 0:04:03.040 --> 0:04:07.960 Biden Administration's IRA now gives Tesla a production tax credit 0:04:08.000 --> 0:04:10.520 for making these cars in the United States. So I mean, 0:04:10.560 --> 0:04:12.960 it's all margin, margin, margin, margin. That's like the only 0:04:13.120 --> 0:04:16.480 question that analysts and investors have today. What is the 0:04:16.520 --> 0:04:21.280 automotive gross margin X credits today? And that's like, you know, 0:04:21.320 --> 0:04:23.200 if I made a Bingo card, it would have margin 0:04:23.240 --> 0:04:24.040 in every square. 0:04:24.960 --> 0:04:26.400 But don't through that march. 0:04:26.480 --> 0:04:28.760 And it's one important when you're putting in the context 0:04:28.839 --> 0:04:31.400 of Tesla versus itself, but versus. 0:04:31.080 --> 0:04:33.279 The rest of the auto industry looking at evs, they're 0:04:33.320 --> 0:04:35.479 really not making them at any sort of profit yet. 0:04:36.360 --> 0:04:38.360 Right, I mean, that's why Tesla is doing what it's doing. 0:04:38.400 --> 0:04:41.599 They have wiggle room. They have the best profit margins 0:04:41.640 --> 0:04:43.760 in the industry when it comes to evs, and they're 0:04:43.760 --> 0:04:45.960 willing to sacrifice them to kind of continue to gain 0:04:46.040 --> 0:04:49.760 market share and maintain this pole position. On the last 0:04:49.760 --> 0:04:53.320 earnings call, zat Kerkhorn, Tesla's CFO, said that he expects 0:04:53.360 --> 0:04:56.640 profit margins to remain at about twenty percent this quarter, 0:04:57.000 --> 0:04:58.960 so we're waiting to see if that is the case, 0:04:59.200 --> 0:05:02.400 and it really is putting other arto makers on note. 0:05:02.440 --> 0:05:05.080 I mean, if you're not profitable and now you you know, 0:05:05.120 --> 0:05:06.479 Elon Musk has basically. 0:05:06.240 --> 0:05:09.200 Started this price war. It's hard for everybody else. 0:05:09.360 --> 0:05:11.920 Although he'll claim it's not a price for Dana Hall. 0:05:12.160 --> 0:05:13.800 We thank you so much. We're going to be called 0:05:13.880 --> 0:05:16.280 glued to your top Live blog when we get those 0:05:16.360 --> 0:05:18.320 numbers after the bell today, Let's go back to the 0:05:18.400 --> 0:05:22.119 numbers we've already got Netflix, which apparently is pretty hopeful 0:05:22.160 --> 0:05:24.680 about the second half of twenty twenty three, when, of 0:05:24.680 --> 0:05:27.080 course it starts to really crack down on password sharing 0:05:27.320 --> 0:05:29.800 because Q one a bit of a dismal start, the 0:05:29.920 --> 0:05:33.760 subscriber growth in particular disappointed. Let's bring in parent analytics 0:05:33.800 --> 0:05:37.080 industry strategists Brandon Kats for more on this and talk 0:05:37.120 --> 0:05:40.360 to us about the hope the silver lining around cracking 0:05:40.440 --> 0:05:42.760 down on what is one hundred million people they think 0:05:42.800 --> 0:05:45.080 share passwords when Netflix, is that really going to be 0:05:45.120 --> 0:05:48.000 some sort of well, holy grail after a first quarter 0:05:48.040 --> 0:05:50.159 miss holy grail? 0:05:50.600 --> 0:05:54.559 Maybe not, but a supplementary source of additional revenue moving 0:05:54.600 --> 0:05:57.839 forward probably Now, you have to remember every time Netflix 0:05:57.839 --> 0:06:00.760 has rolled out a price hike, it all results in 0:06:01.120 --> 0:06:05.359 temporary churn before stabilization. This really isn't so different. And 0:06:05.400 --> 0:06:07.919 while right now you're seeing churn rates go high in 0:06:08.000 --> 0:06:10.560 the regions that they're rolling it out, it is widely 0:06:10.600 --> 0:06:13.760 expected to stabilize moving forward, even when it comes to 0:06:13.760 --> 0:06:16.240 the ukn market, which is their most mature market and 0:06:16.320 --> 0:06:18.640 where they have the highest ARPU. So there's probably some 0:06:18.760 --> 0:06:21.839 short term pain for Netflix, but they wouldn't be rolling 0:06:21.880 --> 0:06:24.640 this out if they didn't believe in the long term upside, 0:06:24.640 --> 0:06:29.040 particularly as the whole industry hyper focuses on margins, margins, margins. 0:06:29.080 --> 0:06:31.280 Oh, looking at margins, with Tesla looking at margins, with 0:06:31.440 --> 0:06:34.240 Netflix looking at the content being king It was interesting 0:06:34.279 --> 0:06:37.240 that well, adding only one point seventy five million customers 0:06:37.240 --> 0:06:39.159 in the first quarter, less than had been hoped. Is 0:06:39.200 --> 0:06:41.760 that because of the content slate and you in particular 0:06:41.839 --> 0:06:44.560 focus in on not just what the content is more broadly, 0:06:44.560 --> 0:06:47.000 but what Netflix makes versus what it licenses. 0:06:48.040 --> 0:06:51.080 Yeah, it's a complicated question. We saw Netflix hit yet 0:06:51.120 --> 0:06:55.599 another record low in terms of global audience demand for 0:06:55.680 --> 0:06:59.080 its originals, and that happens because the streaming market is 0:06:59.480 --> 0:07:02.240 as cut it as a best buy on Black Friday, 0:07:02.320 --> 0:07:05.520 and that's not going to change anytime soon. But one 0:07:05.600 --> 0:07:09.039 saving grace is the fact that companies are reopening the 0:07:09.080 --> 0:07:12.480 licensing market after years of in house consolidation. So Netflix 0:07:12.480 --> 0:07:15.640 will probably be able to benefit by once again acquiring 0:07:15.680 --> 0:07:20.880 titles from competitors that will help increase engagement, retention, and acquisition. 0:07:21.040 --> 0:07:23.520 So they still have to strike that balance. They still 0:07:23.520 --> 0:07:25.600 have a strong content slate coming out in the second 0:07:25.640 --> 0:07:28.360 half the year, but it's really really important that they 0:07:28.400 --> 0:07:30.080 start generating some momentum soon. 0:07:30.800 --> 0:07:33.760 What about the people that they license the content from, 0:07:33.880 --> 0:07:37.560 you highlight Sony in particular, when they know that Netflix 0:07:37.640 --> 0:07:40.760 is out there pushing for advertising spots that are really 0:07:40.840 --> 0:07:44.920 quite expensive, how much can they negotiate for the price 0:07:44.960 --> 0:07:46.800 point of these sorts of content deals. 0:07:47.360 --> 0:07:49.840 If someone like a Sony, the premier arms dealer of 0:07:49.880 --> 0:07:53.560 content in Hollywood, has immense leverage in these conversations. Netflix 0:07:53.600 --> 0:07:55.800 is already paying them one billion over four years for 0:07:55.840 --> 0:07:59.280 their pay one film deal. That can continue to skyrocket 0:07:59.320 --> 0:08:03.120 in terms of their case by case licensing agreements. It's 0:08:03.160 --> 0:08:05.360 going to be really, really important because we obviously know 0:08:05.440 --> 0:08:09.280 Netflix wants to stabilize and kind of solidify its content 0:08:09.320 --> 0:08:12.280 budget around seventeen billions for the next few years, but 0:08:12.640 --> 0:08:15.320 they are going to be hard pressed to find better deals. 0:08:15.880 --> 0:08:18.200 Everyone knows they need the content and now is a rich, 0:08:18.320 --> 0:08:20.960 rich time to be selling. So despite the kind of 0:08:21.040 --> 0:08:25.480 crackdown on programming overall, they're in a tough position but 0:08:25.560 --> 0:08:27.360 also an advantageous one at the same time. 0:08:27.680 --> 0:08:29.400 And I want to go to what was perhaps a 0:08:29.440 --> 0:08:31.680 bit of a debarkle over the weekend for Netflix when 0:08:31.720 --> 0:08:34.960 it came to stress testing its live offering. They've done 0:08:34.960 --> 0:08:37.920 it before once with Chris Rock and then Love Is 0:08:37.960 --> 0:08:40.200 Blind happened. You were meant to be tuning in live 0:08:40.280 --> 0:08:41.880 to be able to give your own questions if you're 0:08:41.920 --> 0:08:45.199 an addict to this particular reality show, and it had 0:08:45.240 --> 0:08:48.480 a whole load of hitches. How important is that, Brandon 0:08:48.559 --> 0:08:51.559 to the future of the profits of Netflix. 0:08:52.559 --> 0:08:55.080 I had my glass of wine ready, I was excited 0:08:55.240 --> 0:08:58.120 for the live event, and unfortunately, as you mentioned, it 0:08:58.160 --> 0:09:01.720 did disappoint. Now Netflix really is being seen as test 0:09:01.760 --> 0:09:04.520 casing with Chris Rock with Love is Blind their ability 0:09:04.559 --> 0:09:06.800 to move into live sports, which is really the last 0:09:06.920 --> 0:09:10.240 vestige of hope that linear TV has and as we've seen, 0:09:10.280 --> 0:09:14.200 live sports continue to migrate more and more towards digital platforms. 0:09:14.240 --> 0:09:16.480 So the fact that they had issues here is not 0:09:16.520 --> 0:09:19.200 going to instill confidence in any smaller leagues that they 0:09:19.280 --> 0:09:22.760 might be interested in investing in in apparently stealing the rights. 0:09:23.080 --> 0:09:26.280 And again, live events is another revenue generating source that's 0:09:26.320 --> 0:09:28.160 going to bring engagement in a lot of chatter to 0:09:28.200 --> 0:09:30.360 the platform. So if they want to continue expand there, 0:09:30.520 --> 0:09:33.120 they have to make sure that the tech is up 0:09:33.200 --> 0:09:33.720 to snuff. 0:09:34.800 --> 0:09:35.840 And let's talk leadership. 0:09:35.920 --> 0:09:38.760 Lastly, Brandon, because all of this comes under what has 0:09:38.800 --> 0:09:42.560 been a very compared to many other tech orrantine content 0:09:42.679 --> 0:09:45.800 tech companies, a pretty slick transfer of power that seems 0:09:45.840 --> 0:09:47.880 to be going on with Netflix. What do you make 0:09:47.920 --> 0:09:50.960 of it under the new leadership and same more problems though. 0:09:52.040 --> 0:09:54.680 Listen, there's always going to be snaffoos here and there, 0:09:54.720 --> 0:09:57.520 but I think overall you're seeing a pretty seamless transition. 0:09:57.880 --> 0:10:00.679 You're seeing issues that we've discussed that a important but 0:10:00.840 --> 0:10:05.080 not insurmountable. I would never bet against Netflix at this stage, 0:10:05.360 --> 0:10:08.280 given the way they've been able to innovate and adapt 0:10:08.360 --> 0:10:11.559 and continue expanding their products. So I think when we're 0:10:11.559 --> 0:10:14.360 talking about leadership them hyper focusing on the ad toier 0:10:14.440 --> 0:10:16.760 long term is a great call. That's what investors want 0:10:16.800 --> 0:10:18.960 to hear. That's what's going to be a huge growth engine, 0:10:19.120 --> 0:10:25.319 particularly for christ conscious consumers in a very uncertain economic reality. 0:10:25.400 --> 0:10:28.680 So I think right now you're seeing read Hastings footprints 0:10:28.880 --> 0:10:31.679 are still all over Netflix. But the new leadership in 0:10:31.720 --> 0:10:34.120 Greg Peters and Inted surrend Us, who's obviously been in 0:10:34.120 --> 0:10:36.560 that position for quite some time, is going to probably 0:10:36.600 --> 0:10:38.200 do just fine all things considered. 0:10:38.720 --> 0:10:41.960 Part analytics industry strategist Brandon Katz, great to have your 0:10:42.040 --> 0:10:42.760 energy on today. 0:10:42.760 --> 0:10:43.240 We thank you. 0:10:51.440 --> 0:10:51.600 Now. 0:10:51.640 --> 0:10:54.520 When people think of AI, they may think of robots 0:10:54.559 --> 0:10:57.880 threatening repetitive jobs, blue collar work, legal work, even but 0:10:57.960 --> 0:10:59.880 it may also be replacing one of the most secretive 0:10:59.880 --> 0:11:04.079 intimate lines of work therapy fly mergs. Rachel Metz reports 0:11:04.120 --> 0:11:05.920 that more and more people are actually turning to chat 0:11:05.960 --> 0:11:09.680 GPT that's open AI's chatbot as a solution to therapy, 0:11:09.880 --> 0:11:14.480 telling it their problems seeking reassurance despite potential privacy implications. 0:11:14.640 --> 0:11:16.920 Let's bring in Rachel as well as Margaret. 0:11:16.559 --> 0:11:20.040 Mitchell, chief ethics scientist for Hugging Face AI really is 0:11:20.080 --> 0:11:22.840 AI could be a solution to certain areas of therapy, 0:11:22.920 --> 0:11:26.679 like crisis helplines. Rachel, I turn to you first, how 0:11:27.600 --> 0:11:30.760 are people using chat GPT? You've had some really intimate 0:11:30.800 --> 0:11:32.439 discussions with certain people who. 0:11:32.360 --> 0:11:32.920 Turn to it. 0:11:33.440 --> 0:11:36.720 Yeah, I've spoken to some people who say they've used 0:11:36.760 --> 0:11:41.120 it either instead of speaking to a therapist or perhaps 0:11:41.160 --> 0:11:44.559 in addition to having a human therapist. And even though 0:11:44.679 --> 0:11:46.880 it's still really early days, some people are finding it 0:11:46.960 --> 0:11:48.760 quite helpful, which I thought was really interesting. 0:11:48.800 --> 0:11:52.319 It's actually not what I was expecting. But with that, 0:11:52.400 --> 0:11:54.440 of course comes concerns. 0:11:54.559 --> 0:11:54.800 Meg. 0:11:55.000 --> 0:11:59.680 And when you're let's start on the hopeful areas of this, Meg, 0:11:59.720 --> 0:12:04.240 where do you see opportunity for such viral AI chat 0:12:04.280 --> 0:12:06.640 bolts to be helpful in the world of mental health? 0:12:07.800 --> 0:12:11.320 Right, So there's a few areas. One in particular is 0:12:11.400 --> 0:12:16.200 around triaging, so figuring out who someone should talk to 0:12:16.480 --> 0:12:20.000 given that they have some issues. So basically there are 0:12:20.040 --> 0:12:23.360 like crisis text lines that are or crisis phone lines 0:12:23.360 --> 0:12:27.360 that are overrun with requests for help, especially for veterans, 0:12:27.960 --> 0:12:30.840 but there aren't enough people with expertise to help them. 0:12:31.480 --> 0:12:33.520 And so one thing that's really useful is to have 0:12:33.600 --> 0:12:37.079 some sort of automated system to help people get quickly 0:12:37.240 --> 0:12:39.599 through different calls in order to route them to the 0:12:39.720 --> 0:12:43.400 right people. It's also this kind of technology is also 0:12:43.440 --> 0:12:47.280 really useful for what's called rubber ducking, which is just 0:12:47.280 --> 0:12:50.720 sort of talking something out. When you have another entity 0:12:50.800 --> 0:12:53.720 that you can just talk something out too, even if 0:12:53.760 --> 0:12:58.120 it doesn't respond, that's often quite helpful. So those two 0:12:58.160 --> 0:13:03.080 sorts of use cases are arguably more pros than cons. 0:13:03.360 --> 0:13:08.680 Yeah, yeah, Rachel, there were clearly alleviation of the fact 0:13:08.679 --> 0:13:10.679 that they feel that this isn't a therapist that's going 0:13:10.679 --> 0:13:13.120 to charge them alade or indeed get bored of them 0:13:13.120 --> 0:13:13.960 asking questions. 0:13:14.160 --> 0:13:15.480 But when you spoke to open. 0:13:15.320 --> 0:13:18.240 Ai the company, or indeed when you're thinking of people 0:13:18.600 --> 0:13:21.120 who use them alongside a therapist, does that seem to 0:13:21.120 --> 0:13:22.440 be the better approach here? 0:13:23.120 --> 0:13:26.880 I think that right now it's really important to keep 0:13:26.880 --> 0:13:28.680 in mind that there are a lot of limitations here, 0:13:28.720 --> 0:13:31.120 and perhaps the most obvious is that this is not 0:13:31.160 --> 0:13:33.240 intended to be any kind of therapist. 0:13:33.320 --> 0:13:34.600 Is the general used chatbot. 0:13:35.720 --> 0:13:38.800 Any data that you're providing to the system, it could 0:13:38.840 --> 0:13:42.439 be viewed by open ai if it can be deleted, 0:13:42.520 --> 0:13:44.360 but it might take up to a month to delete 0:13:44.400 --> 0:13:47.360 your account. So I personally try to avoid giving it 0:13:47.400 --> 0:13:51.600 any information when I'm typing with chat GPT because I 0:13:51.640 --> 0:13:54.240 want control of my own personal data. So it's not 0:13:54.320 --> 0:13:56.960 like talking to a professional therapist, where you would have 0:13:57.280 --> 0:13:59.920 some sort of confidentiality in almost all cases. 0:14:00.240 --> 0:14:03.640 But also when asking a question of open AI, does 0:14:03.679 --> 0:14:06.199 it realize that perhaps this is a sensitive area. Does 0:14:06.240 --> 0:14:09.120 it push back on giving any direct medical advice for example? 0:14:09.280 --> 0:14:13.960 Yeah, there are policies include don't use the chatbot to 0:14:14.280 --> 0:14:18.000 diagnose any kind of actual medical diagnoses. 0:14:18.400 --> 0:14:19.920 But also if you yeah. 0:14:19.760 --> 0:14:21.960 If you're approaching it and saying like, hey, I need 0:14:22.040 --> 0:14:24.080 you know, I need help, you know, help me as 0:14:24.160 --> 0:14:26.960 like sort of a therapist, it may push back. But 0:14:27.000 --> 0:14:29.400 also at the same time it may maybe like, but 0:14:29.480 --> 0:14:31.480 if you want, I can try to give you some advice. 0:14:31.520 --> 0:14:33.600 So one of the people I spoke to said that 0:14:33.600 --> 0:14:35.160 that it was like, well, I am not intended as 0:14:35.160 --> 0:14:37.720 a therapist, however I can I can try to help. 0:14:38.120 --> 0:14:41.160 And interestingly, of course Meg there are other companies out 0:14:41.160 --> 0:14:44.200 there how are thinking about the ways in which loneliness 0:14:44.200 --> 0:14:46.240 can be helped. Replica is one that comes to mind, 0:14:46.240 --> 0:14:48.600 but you over at hugging face and hugging Face is 0:14:48.760 --> 0:14:52.240 an AI community, right, You're you're building, you're training the models, 0:14:52.240 --> 0:14:55.160 you're putting them into practice in an open source manner. 0:14:55.600 --> 0:14:58.920 How are you thinking about ethics around its use, whether 0:14:58.960 --> 0:15:00.280 it be for mental health or other wise. 0:15:01.320 --> 0:15:03.680 Yeah, I mean with ethics work, you're always thinking through 0:15:03.760 --> 0:15:07.640 different values, different tensions, different pros and cons. There's never 0:15:07.800 --> 0:15:12.240 like one very obvious clear answer when you're getting into 0:15:12.280 --> 0:15:15.600 the leads of how this technology can affect people. And 0:15:15.680 --> 0:15:21.200 so we're working on things like gating mechanisms where while 0:15:21.280 --> 0:15:24.840 the source code is still open, the ability to interact 0:15:24.960 --> 0:15:27.920 with a system is limited. You have to be able 0:15:27.960 --> 0:15:31.640 to submit a request, and this is a situation where 0:15:31.680 --> 0:15:36.600 eventually it would make sense to collaborate with clinicians, therapists, 0:15:36.600 --> 0:15:39.560 things like that, have them be part of the system 0:15:39.600 --> 0:15:42.800 and part of the requests. So this is these gating 0:15:42.840 --> 0:15:46.280 mechanisms that work in open source. We also try and 0:15:46.320 --> 0:15:49.800 provide as much documentation and detail as possible, So we 0:15:49.880 --> 0:15:54.160 have heavy documentation protocols for data for models that go 0:15:54.280 --> 0:15:59.200 over intended uses, ways that the technology could be misunderstood. 0:15:59.520 --> 0:16:00.720 So really focusing on. 0:16:00.680 --> 0:16:02.680 The education to the users as well. 0:16:02.960 --> 0:16:05.640 Meg I'm going to execut a tough quick one to finish. 0:16:06.480 --> 0:16:09.520 Is open AI behaving responsibly here? Do you think in 0:16:09.680 --> 0:16:13.600 the use of chatchipt for into the broader community. 0:16:17.200 --> 0:16:17.960 Yes and no. 0:16:18.280 --> 0:16:21.000 With everything with ethics, they are doing some things responsibly. 0:16:21.040 --> 0:16:25.440 They are doing some things very irresponsibly. Well, I can 0:16:25.520 --> 0:16:29.320 go on, but yes, yes and no, they're being irresponsible 0:16:29.440 --> 0:16:32.400 in some ways that this technology is made available. 0:16:33.080 --> 0:16:35.560 Dig into that. On another occasion, we thank you so 0:16:35.680 --> 0:16:37.960 much for joining us. Margaret Mitchell of course hugging face 0:16:38.040 --> 0:16:41.120 chief ethics Officer and our own Rachel Mets just amazing 0:16:41.120 --> 0:16:43.920 reporting coming from her and all things artificial intelligence, And 0:16:43.960 --> 0:16:46.880 in fact, starting today you can find a new AI 0:16:46.960 --> 0:16:49.440 landing page on bloomug dot com. Go check out Rachel's 0:16:49.440 --> 0:16:51.840 work highlighting all of our carriage all of our data 0:16:51.880 --> 0:16:54.000 as well, and in fact, there's a new twelve part 0:16:54.000 --> 0:16:57.600 bluemug original series as well about AI's impact on specific 0:16:57.680 --> 0:16:58.640 sectors of the economy. 0:16:58.680 --> 0:17:01.040 You do not want to miss it. Coming up. 0:17:01.400 --> 0:17:04.640 Legislation surrounding a ban of TikTok is giving the attention 0:17:04.880 --> 0:17:07.560 a big tech not in the way you'd think mobbists 0:17:07.560 --> 0:17:09.200 are actually pushing for changes to that Bill. 0:17:09.400 --> 0:17:11.800 We have a rapport from Capitol Hill. Next, this is 0:17:11.840 --> 0:17:25.760 Bloomberg time for talking Tech. 0:17:25.840 --> 0:17:28.760 Some other key stories on our radar today. Meta set 0:17:28.800 --> 0:17:31.240 to begin at second round of company wide layoffs today, 0:17:31.640 --> 0:17:34.600 so move towards founder Mark Zuckerberg's goal of well greater 0:17:34.640 --> 0:17:37.040 efficiency and a company memo that was seen by Bloomberg 0:17:37.040 --> 0:17:40.080 News and indicates that Facebook, WhatsApp, Instagram, and Meta's virtual 0:17:40.119 --> 0:17:43.560 reality lab will all be impacted. Eventually ten thousand jobs 0:17:43.600 --> 0:17:47.159 will be cut. Snap says it can't be sued for 0:17:47.240 --> 0:17:51.080 allegedly addicting young users and contributing to a mental health crisis. 0:17:51.080 --> 0:17:54.639 Snap claims it is quote primarily used for direct communication, 0:17:54.800 --> 0:17:58.080 fundamentally different from competitors. They're at the center of social 0:17:58.080 --> 0:18:01.480 media addiction. Of course, Meta, White Dance, Google, Snap, They're 0:18:01.520 --> 0:18:04.919 all fighting nearly two hundred lawsuits over their impact on 0:18:04.960 --> 0:18:05.639 mental health. 0:18:05.720 --> 0:18:07.920 And speaking of social media, tech. 0:18:07.720 --> 0:18:11.000 Giants are resisting legislation that would ban TikTok in the 0:18:11.119 --> 0:18:14.680 United States now. The Information Technology Industry Council, which includes Snap, Meta, 0:18:14.760 --> 0:18:17.960 as well as IBM, Apple or Microsoft, is among groups 0:18:18.040 --> 0:18:21.960 lobbying to narrow what is the bipartisan legislation being considered 0:18:21.960 --> 0:18:23.800 in the Senate right now. They're worried that the bill's 0:18:24.080 --> 0:18:27.159 broad language could impact their businesses. So we want to 0:18:27.200 --> 0:18:29.639 dig in on that reporting Bloomberg's and edgeton. 0:18:29.800 --> 0:18:30.760 It's on Capitol Hill. 0:18:30.800 --> 0:18:33.800 And it's interesting, isn't it that actually a lobbyist for 0:18:34.040 --> 0:18:37.080 technology seems to be against a pushing back on the 0:18:37.160 --> 0:18:38.600 Chinese made TikTok. 0:18:38.800 --> 0:18:39.560 Why. 0:18:40.160 --> 0:18:42.480 Well, one thing that is concerning about this bill to 0:18:43.320 --> 0:18:46.280 US tech companies is that it's written very broadly. So 0:18:46.359 --> 0:18:48.280 this isn't a bill that would just come out and 0:18:48.480 --> 0:18:52.120 ban TikTok. Would actually empower the Commerce Secretary to evaluate 0:18:52.119 --> 0:18:55.480 the national security risk in any technology from a foreign 0:18:55.520 --> 0:18:59.000 adversary like China, Russia, Iran, North Korea. And so the 0:18:59.040 --> 0:19:02.560 concern is that a lot of US technology has Chinese components, 0:19:02.920 --> 0:19:05.600 some line of code written by a Chinese national, and 0:19:05.640 --> 0:19:08.080 then in the hands of a future Commerce secretary, this 0:19:08.160 --> 0:19:11.520 could become a very powerful weapon against the US tech industry. 0:19:11.920 --> 0:19:13.800 It is interesting because, of course, every time that we 0:19:14.000 --> 0:19:17.040 mentioned that maybe it'd be realistic for TikTok to be banned, 0:19:17.520 --> 0:19:20.200 share price dissolve, snap jump higher. We think about the 0:19:20.280 --> 0:19:24.840 repercussions and help to Google's YouTube shorts and Instagram. 0:19:25.200 --> 0:19:27.679 But who are the companies who are most worried about this? 0:19:27.720 --> 0:19:28.960 Would it more likely be the. 0:19:28.920 --> 0:19:31.760 Apples, the Cisco's, the ibms that are more dependent on 0:19:32.160 --> 0:19:33.560 Chinese made technologies. 0:19:34.359 --> 0:19:37.320 Well, our reporting shows that both hardware and software companies 0:19:37.359 --> 0:19:39.280 are worried about this, and part because. 0:19:39.040 --> 0:19:40.080 Of the precedent it sets. 0:19:40.160 --> 0:19:41.919 And that's one of the things we've heard from the 0:19:41.920 --> 0:19:45.639 tech industry throughout this conversation about TikTok is they're asking 0:19:45.840 --> 0:19:48.040 US lawmakers to be very careful in the steps that 0:19:48.080 --> 0:19:52.760 they take. Even if they might initially benefit US tech companies, 0:19:52.760 --> 0:19:55.360 it could set a really bad precedent for US companies 0:19:55.480 --> 0:19:58.280 operating abroad, like what if India decides that it wants 0:19:58.320 --> 0:20:00.760 to ban Meta, What if Brazil sides that it wants 0:20:00.760 --> 0:20:04.040 to ban Google. So you see this kind of you know, 0:20:04.119 --> 0:20:06.719 looking beyond their shorts and wondering how this is going 0:20:06.760 --> 0:20:08.840 to play out globally, not just here in the US. 0:20:08.960 --> 0:20:11.720 I suppose the show only on the foot being much 0:20:11.720 --> 0:20:14.359 of the argument is that China does ban an awful 0:20:14.400 --> 0:20:16.639 lot of US companies over there, and this would be 0:20:16.640 --> 0:20:17.479 the response to it. 0:20:18.640 --> 0:20:20.720 Well, and that's one thing that we see that I've 0:20:20.720 --> 0:20:22.800 heard from some lawmakers who are worried about this bill 0:20:22.880 --> 0:20:25.480 is they're saying, even though we're in a strategic competition 0:20:25.600 --> 0:20:28.000 with China, we don't want to become more like China. 0:20:28.320 --> 0:20:31.040 And you definitely see this debate working out and how 0:20:31.040 --> 0:20:34.720 you kind of handle this asymmetric strategic competition with our 0:20:34.880 --> 0:20:38.639 you know, some people's opinion, our greatest global adversary, to 0:20:38.680 --> 0:20:41.560 try to figure out how we can address our tech 0:20:41.560 --> 0:20:44.720 industry here in the US in a way that reflects 0:20:44.800 --> 0:20:47.320 both the freedoms and values that the United States holds. 0:20:47.359 --> 0:20:49.600 Deer and it's great reporting. 0:20:49.680 --> 0:20:52.400 Thank you for bringing us the latest and jutant over 0:20:52.440 --> 0:21:03.199 there on Capitol Hill. Welcome back to lumbag Technology. I'm 0:21:03.240 --> 0:21:05.080 Carienne Hyde in New York. Let's get a quick check 0:21:05.080 --> 0:21:07.240 on these markets right now, because we are eeking out 0:21:07.280 --> 0:21:08.879 gains on the Nasdaq one hundred. 0:21:09.040 --> 0:21:11.520 In fact, we've eat them out for three straight days. 0:21:11.520 --> 0:21:13.320 It's the longest winning street we've seen on this particular 0:21:13.359 --> 0:21:15.879 tech heavy benchmark since the end of March. 0:21:15.960 --> 0:21:17.960 So managing to just rally up. 0:21:17.920 --> 0:21:20.359 On the heavy lift that's going on with Apple, with 0:21:20.440 --> 0:21:23.240 Amazon doing the heavy lifting on the points perspective on 0:21:23.280 --> 0:21:26.320 the downside of Cisco. Also on the downside is Netflix 0:21:26.359 --> 0:21:28.560 off by more than three point seven percent after look 0:21:28.560 --> 0:21:32.040 it's it's guidance and its first quarter earnings underwhelmed one 0:21:32.040 --> 0:21:34.919 point seventy five million subscribers added, not as many as 0:21:34.920 --> 0:21:37.600 the market wanted to see, and their forward looking guidance 0:21:37.600 --> 0:21:40.359 the second quarter revenue not looking so pretty either, although 0:21:40.359 --> 0:21:42.120 they do talk about the second half of the year 0:21:42.160 --> 0:21:45.000 being stronger on the back of clamping down on password sharing. 0:21:45.119 --> 0:21:47.800 Tesla also off by one point three percent. Again, this 0:21:47.920 --> 0:21:52.560 is Elon Musk going for well overall sales over profits. 0:21:52.600 --> 0:21:54.159 He wants to be getting them out the doors. The 0:21:54.200 --> 0:21:56.800 model why's the model threes and so he's cutting the 0:21:56.800 --> 0:21:59.159 price point once again overall the model why the suv 0:21:59.320 --> 0:22:01.359 is down by thirty percent in terms of a price 0:22:01.400 --> 0:22:03.800 point over the course of this year alone. Flick it 0:22:03.880 --> 0:22:05.639 on and we'll look at what's happening on crypto, because 0:22:05.760 --> 0:22:08.639 maybe some of that nervousness and anxiety around earnings around 0:22:08.680 --> 0:22:10.280 where the Federal Reserve has to go in terms of 0:22:10.280 --> 0:22:13.080 inflation is just hitting biggerin Also, look, maybe some of 0:22:13.080 --> 0:22:16.119 the bank cernings, particularly the smaller banks, are easing some 0:22:16.160 --> 0:22:19.520 of our concerns about the resiliency of the financial sector 0:22:19.560 --> 0:22:21.600 here in the United States, that rush for a haven 0:22:21.640 --> 0:22:24.640 of bitcoin, which of course is an alternative to moder 0:22:24.680 --> 0:22:26.600 day finance. It's caring up by three and a half 0:22:26.600 --> 0:22:28.560 percent with sub thirty thousand dollars. 0:22:29.680 --> 0:22:32.359 Let's flick gears. Now, let's talk about something different to. 0:22:32.480 --> 0:22:36.440 Our Airbnb how it's adding Starwarard Capital some other landlords 0:22:36.600 --> 0:22:39.520 to a program that will allow renters to lease their 0:22:39.520 --> 0:22:43.040 apartments part time on the home sharing platform. Look, this 0:22:43.080 --> 0:22:46.280 actually helps landlords perhaps attract tenants who aim to boost 0:22:46.400 --> 0:22:49.480 become those hosts themselves. Airbnb co founders here to talk 0:22:49.520 --> 0:22:53.320 all about it. Nate Blatcharzik, We're pleased to welcome offering 0:22:53.440 --> 0:22:56.960 first that actually rolled out what in November. But people 0:22:57.000 --> 0:23:00.000 are getting more and more interested. What's driving demand here? 0:23:00.080 --> 0:23:01.800 Is it the landlords that are interested or is it 0:23:01.840 --> 0:23:02.639 the potential tenants? 0:23:02.680 --> 0:23:04.240 We're telling the landlords to get on board. 0:23:05.520 --> 0:23:08.320 The Airbnb Friendly Apartment's program is off to a very 0:23:08.359 --> 0:23:11.040 strong start, and I think that's because it addresses a 0:23:11.080 --> 0:23:15.800 real need out there for renters, which is housing affordability. 0:23:16.359 --> 0:23:20.560 In the United States, renters, forty six percent of renters 0:23:21.119 --> 0:23:22.200 are cost burdened. 0:23:22.240 --> 0:23:24.400 That means they're spending thirty percent or more of their 0:23:24.440 --> 0:23:26.560 income just to pay their rent. 0:23:26.760 --> 0:23:31.760 And this disproportionately impacts young people and those living in cities. 0:23:31.800 --> 0:23:33.920 About two thirds of young people two thirds of those 0:23:33.960 --> 0:23:37.439 in Citi's rent. And that's really Airbnb's for audience, and 0:23:37.440 --> 0:23:39.200 it's an audience I can relate to because when we 0:23:39.240 --> 0:23:42.560 started Airbnb, it was simply to help us afford our 0:23:42.560 --> 0:23:45.199 own rent. We had quit our jobs to become entrepreneurs, 0:23:45.720 --> 0:23:47.200 and we rented out an extra bedroom. 0:23:47.280 --> 0:23:49.199 And if I were to do that today, it's a 0:23:49.200 --> 0:23:51.119 good chance my lard wouldn't allow me to. 0:23:51.600 --> 0:23:54.320 And so with this program, we're helping renters to find 0:23:54.680 --> 0:23:58.760 apartment landlords who will support their hosting activity on a 0:23:58.760 --> 0:24:01.320 part time basis. And you can come to our site 0:24:01.320 --> 0:24:04.480 now and find two hundred and sixty apartment buildings across 0:24:04.520 --> 0:24:08.280 thirty eight cities in the United States that will allow 0:24:08.280 --> 0:24:08.760 you to host. 0:24:08.960 --> 0:24:11.600 The thirty eight cities is interesting because that's ramped up 0:24:11.680 --> 0:24:14.240 since you first launched back in November as well. Is 0:24:14.240 --> 0:24:18.199 this a regulatory discussion that you're having as well? 0:24:18.480 --> 0:24:18.720 Well? 0:24:19.040 --> 0:24:22.840 We launched one hundred and seventy five buildings across twenty 0:24:22.880 --> 0:24:25.359 five cities. It's now two hundred sixty buildings and thirty 0:24:25.359 --> 0:24:28.640 eight cities. And there's two layers of this. Of course, 0:24:28.640 --> 0:24:31.840 there's the regulation that exists city by city, and in 0:24:31.840 --> 0:24:35.159 most cities there's regulation now in place, and it allows 0:24:35.160 --> 0:24:38.000 people to rent their primary homes on a part time basis. 0:24:38.200 --> 0:24:40.240 But even if the regulation allows you to do this, 0:24:40.359 --> 0:24:42.639 you still need permission from your landlord. And so this 0:24:42.680 --> 0:24:46.640 program really works with landlords to create a framework that 0:24:47.320 --> 0:24:51.000 makes them comfortable giving permission to their tenants to become hosts. 0:24:51.520 --> 0:24:54.600 What gets them comfortable because they need to have a 0:24:54.600 --> 0:24:56.560 lot of faith in the tenants, so they'll keep the 0:24:56.800 --> 0:24:57.879 building that they're going to be. 0:24:57.880 --> 0:24:58.800 Offering up to scratch. 0:24:58.840 --> 0:25:02.160 That becomes a pleasant experience for anyone who's walking into 0:25:02.160 --> 0:25:04.520 one of their particular high rises. 0:25:05.800 --> 0:25:09.160 Yeah, first and foremost, just visibility. 0:25:08.640 --> 0:25:10.040 Into what's happening in their buildings, right. 0:25:10.080 --> 0:25:13.960 They want to have an atmosphere that is conducive to 0:25:14.440 --> 0:25:16.439 a good sense of community in their buildings, and so 0:25:16.480 --> 0:25:18.679 they want to have certain controls to make sure that 0:25:18.720 --> 0:25:21.520 this is happening only on a part time basis, and 0:25:21.600 --> 0:25:23.520 that they know who's coming and going from the buildings. 0:25:23.720 --> 0:25:26.720 So we have a software suite that allows the landlord 0:25:26.800 --> 0:25:29.800 to see who's hosting in the building, how many guests 0:25:29.800 --> 0:25:32.760 are coming and going, and really have a sense of 0:25:32.800 --> 0:25:36.480 control over what's happening and effectively enforced it too. The 0:25:36.520 --> 0:25:40.080 second part of that is that we are allowing landlords 0:25:40.119 --> 0:25:43.200 to market themselves the market, the fact that they are 0:25:43.600 --> 0:25:47.359 friendly to Airbnb hosts, that they allowed us, and so 0:25:48.520 --> 0:25:50.640 they are now featured on our website. You can come 0:25:50.640 --> 0:25:52.359 to our website and you can see these two undred 0:25:52.359 --> 0:25:57.080 sixty buildings across the US, and if you're interested, reach 0:25:57.119 --> 0:25:59.520 out to the building to sign a one year lease. 0:26:00.119 --> 0:26:03.840 And so we're effectively driving leads to these buildings, driving 0:26:03.880 --> 0:26:06.240 their core business, reducing their marketing costs. 0:26:06.440 --> 0:26:09.000 This is an importance to them too. 0:26:09.960 --> 0:26:12.600 As the economy rolls over, do you think more and 0:26:12.640 --> 0:26:15.320 more will seek this have you Have you been able 0:26:15.400 --> 0:26:17.720 to line it up as to people are more worried 0:26:17.720 --> 0:26:20.080 about cost of living and whether or not this does well. 0:26:21.400 --> 0:26:23.639 Yeah, absolutely, I mean I think it definitely plays to 0:26:24.040 --> 0:26:30.040 the times where there's economic uncertainty and questions about housing affordability. 0:26:30.320 --> 0:26:32.240 So I think now more than ever this is relevant 0:26:32.440 --> 0:26:34.840 and I think in particular. You know, we're well positioned 0:26:34.960 --> 0:26:39.239 to create this product because we have the audience that 0:26:39.359 --> 0:26:45.200 really understands that hosting enables people to pay their bills 0:26:46.119 --> 0:26:50.680 to you know, start their company. H These are folks 0:26:51.000 --> 0:26:54.159 who are young, they're often in urban areas, they're very 0:26:54.160 --> 0:26:56.520 fluent in airbnb. They want to do this. They know 0:26:56.600 --> 0:26:59.439 that this is helping, that would help them. They just 0:26:59.440 --> 0:27:02.120 need to know what landlords are going to support the activity. 0:27:02.200 --> 0:27:04.639 And so we're kind of playing matchmaker here. We have 0:27:04.720 --> 0:27:07.080 the demand and now through our partnerships, we have to. 0:27:07.040 --> 0:27:10.440 Supply, and often these are international landlords. Would this ever 0:27:10.480 --> 0:27:11.679 go beyond the United States? 0:27:13.480 --> 0:27:16.800 Yeah, So we're working with a range of landlords, smaller 0:27:16.880 --> 0:27:22.280 landlords and larger ones including Gray Star, UDR Equity, Residential Star, 0:27:22.320 --> 0:27:25.600 Wars Capital now just signed on, and many more. And 0:27:25.640 --> 0:27:28.320 this will continue to grow. We're actively partnering. We have 0:27:28.320 --> 0:27:30.880 a backlog of landlords we're working with. I do think 0:27:30.920 --> 0:27:33.960 this will expand beyond the United States. We're starting here, 0:27:34.160 --> 0:27:37.320 and frankly, we're going slow because we want to make 0:27:37.359 --> 0:27:41.359 sure this works for the landlords as well, and we 0:27:41.400 --> 0:27:43.639 want to make sure that this is a success and 0:27:44.320 --> 0:27:47.080 it's success in these two hundred and sixty buildings. Then 0:27:47.160 --> 0:27:49.080 we're confident there's gonna be many more buildings, and we'll 0:27:49.080 --> 0:27:49.879 take it outside. 0:27:49.640 --> 0:27:50.280 The US as well. 0:27:50.440 --> 0:27:51.680 Why does it work for you. 0:27:53.840 --> 0:27:54.959 For Airbnb the company? 0:27:55.119 --> 0:27:59.720 Yes, it's important because look, one third of Americans rent, 0:28:00.040 --> 0:28:02.320 and that's a large part of the market, and so 0:28:03.119 --> 0:28:07.359 we want to make sure that they're not categorically disallowed 0:28:07.400 --> 0:28:11.480 from participating in Airbnb. And so this is really meant 0:28:11.520 --> 0:28:14.440 to unlock a big part of the market, and particularly 0:28:14.560 --> 0:28:17.280 young people, those in cities. I mean, this is our 0:28:17.280 --> 0:28:24.040 core demographic that you know, by default currently cannot host, 0:28:24.200 --> 0:28:27.240 and so this program is intended to really unlock that 0:28:27.320 --> 0:28:30.640 and change the industry's perception and see this as Airbnb, 0:28:30.760 --> 0:28:34.800 not as something they need to tightly control or prohibit 0:28:34.840 --> 0:28:38.000 in their buildings, but really as an economic opportunity that 0:28:38.040 --> 0:28:41.200 can be embraced with the proper controls in place. And again, 0:28:41.240 --> 0:28:43.400 it is all about controls and making sure it's happening 0:28:43.440 --> 0:28:45.800 on a part time basis, which is what our tools allow. 0:28:46.240 --> 0:28:46.440 Nat. 0:28:46.560 --> 0:28:48.400 Thanks so much for spending time with us. Airbnb co 0:28:48.520 --> 0:28:49.880 founder Nagra Chasing there. 0:28:50.480 --> 0:28:50.880 Thank you. 0:28:51.480 --> 0:28:54.160 Now, as we ramp up to Earth Day this Saturday, 0:28:54.200 --> 0:28:56.360 we continue to cover the new technologies really striving to 0:28:56.360 --> 0:28:58.600 protect the planet, and today we take a look at 0:28:58.720 --> 0:29:02.120 the concerns of the impact of offshore wind farms and whales, 0:29:02.440 --> 0:29:05.040 dolphins and other marine life and how AI can actually 0:29:05.040 --> 0:29:09.720 help with that. Pimbag's Stefan Jodovic has their story. 0:29:16.040 --> 0:29:19.200 Whaleship collisions are a leading cause of death for endangered 0:29:19.200 --> 0:29:22.240 whales off the North Atlantic coast of Massachusetts, as well 0:29:22.240 --> 0:29:25.040 as the North and southern California coast of the Pacific. 0:29:25.280 --> 0:29:28.479 Despite their large stature, weighing anywhere between seventy and one 0:29:28.560 --> 0:29:30.920 hundred and sixty tons, they are no match for a 0:29:30.960 --> 0:29:32.920 two hundred thousand ton cargo ship. 0:29:33.000 --> 0:29:33.720 For example. 0:29:34.120 --> 0:29:37.360 North Atlantic right whales have been listed as endangered under 0:29:37.360 --> 0:29:40.760 the Endangered Species Act since nineteen seventy and have had 0:29:40.760 --> 0:29:43.160 a population decline since twenty ten. 0:29:43.840 --> 0:29:47.360 The right whale is highly endangered and jasmal Leo the 0:29:47.440 --> 0:29:51.320 utmost concern that we protect them and ensure that you know, 0:29:51.680 --> 0:29:54.720 we don't do anything during our operations or construction to 0:29:55.520 --> 0:29:57.560 negatively and points of population. 0:29:57.840 --> 0:30:00.880 In order to prevent this problem, organization like Charles River 0:30:00.960 --> 0:30:04.280 Analytics and Whale Safe have been using artificial intelligence in 0:30:04.400 --> 0:30:04.760 order to. 0:30:04.680 --> 0:30:06.080 Combat whale fatalities. 0:30:06.360 --> 0:30:10.120 Based in Cambridge, Massachusetts, Charles River Analytics developed a whale 0:30:10.120 --> 0:30:13.120 detection technology system to be used by a vineyard wind 0:30:13.160 --> 0:30:16.480 who is planning to install over sixty general electric wind 0:30:16.520 --> 0:30:20.120 turbines fifteen miles south of Martha's Vineyard. The software system, 0:30:20.200 --> 0:30:23.560 called Awarian, alerts large shipping vessels to slow down and 0:30:23.600 --> 0:30:27.200 avoid deadly collisions by using infrared radars and cameras to 0:30:27.240 --> 0:30:29.840 detect the location of whales by performing three hundred and 0:30:29.840 --> 0:30:32.160 sixty degree sweeps of the surrounding ocean. 0:30:32.280 --> 0:30:35.640 The great part about the Aware Island AI software is 0:30:35.680 --> 0:30:39.360 that it works with this incorrect video camera and it's 0:30:39.400 --> 0:30:43.280 able to detect small changes temperature, which enables us to 0:30:43.320 --> 0:30:47.280 detect whales during times of women if visibility or parkness. 0:30:47.320 --> 0:30:51.280 In contrast, the Benioff Ocean Initiative back organization Whale Safe 0:30:51.320 --> 0:30:55.680 deploys underwater microphones called hydrophones off the Californian coast to 0:30:55.760 --> 0:30:59.680 listit for blue whale vocalizations near busy shipping lanes, where 0:30:59.720 --> 0:31:02.240 the two rule is able to rank vessels and shipping 0:31:02.280 --> 0:31:07.480 companies according to their cooperation rates with NOAA's voluntary speed restrictions. 0:31:07.520 --> 0:31:08.560 In both regions. 0:31:09.120 --> 0:31:12.760 THO goal is an integrate that these technologies will feature 0:31:12.800 --> 0:31:16.280 winning projects as we develop LO on the tern seyboard. 0:31:16.360 --> 0:31:18.440 We need to find ways where you know, we can 0:31:18.720 --> 0:31:21.720 advance the technology so that we can build off optional 0:31:21.840 --> 0:31:24.600 and you know, as quickly as possible to meet these 0:31:24.600 --> 0:31:25.840 goals that the states. 0:31:25.480 --> 0:31:28.120 And the federal government have for knowable energy. 0:31:28.280 --> 0:31:32.000 Whether a company uses infrared camera technology or sonic wave detection, 0:31:32.280 --> 0:31:35.280 these initiatives provide an eco friendly solution to a problem 0:31:35.400 --> 0:31:38.520 that has resulted in the increasing development of renewable energy 0:31:38.520 --> 0:31:40.440 products combating climate change. 0:31:42.040 --> 0:31:44.200 Sefanjovich there, we thank him. 0:31:44.520 --> 0:31:47.320 Now coming up we'll have more climate change related news 0:31:47.360 --> 0:31:49.000 and then while the benched capital stick for it. 0:31:49.160 --> 0:31:50.440 That's next as a bring bad. 0:32:10.320 --> 0:32:13.880 Time now for our VC roundup, starting with Congruent Ventures, 0:32:13.920 --> 0:32:16.240 which has raised three hundred million dollar fund to help 0:32:16.360 --> 0:32:19.360 its stable of climate focus startups grow their businesses. This 0:32:19.440 --> 0:32:21.640 brings the total amount of assets managed by Congruent to 0:32:21.680 --> 0:32:25.440 more than seven hundred million. Meanwhile, General Motors GM ventures 0:32:25.440 --> 0:32:29.840 fund is participating in an investment around nanoramic laboratories to 0:32:29.840 --> 0:32:33.440 help the startup develop nanotechnology that could make EV batteries 0:32:33.520 --> 0:32:38.840 cheaper to manufacture. Builtmaker dinderslose a dollar figure for its investment. Now, 0:32:38.880 --> 0:32:41.239 investing in companies making a change is not just all 0:32:41.240 --> 0:32:44.600 about the environment. It's also about representation, who runs them, 0:32:44.720 --> 0:32:47.760 who builds them. Let's bring in Fiat Ventures General partner 0:32:47.840 --> 0:32:50.160 Drew Glover, an investor who strives to build a diverse 0:32:50.200 --> 0:32:53.360 portfolio for more on this, and Fiat ventures is really 0:32:53.360 --> 0:32:56.360 focused on fintech in particular. You hadtech Fiat growth, which 0:32:56.400 --> 0:32:59.200 is more about advising and consulting, and now or you're 0:32:59.280 --> 0:33:01.600 taking bit of money and stake in these sorts of companies. 0:33:01.680 --> 0:33:04.120 Just how well funded are the companies that you back 0:33:04.160 --> 0:33:04.640 at the moment. 0:33:06.160 --> 0:33:08.320 Yeah, so it really goes across, It really goes across 0:33:08.320 --> 0:33:08.840 the spectrum. 0:33:08.840 --> 0:33:09.000 Here. 0:33:09.040 --> 0:33:11.560 You know, Fiat growth we get to work hands on 0:33:12.200 --> 0:33:14.200 as a growth consultant to a lot of these early 0:33:14.240 --> 0:33:16.840 stage businesses. And then on Fiat ventures we get to 0:33:16.960 --> 0:33:19.719 take advantage of an investment. We actually get the right 0:33:19.760 --> 0:33:21.840 to invest on the Fiat growth side. So on the 0:33:21.840 --> 0:33:24.280 Fiat growth sides, we're working with companies as early as 0:33:24.280 --> 0:33:26.680 pre seed and as late stage as public. On the 0:33:26.680 --> 0:33:29.360 Fiat venture side, we're investing in pre Series A companies. 0:33:29.360 --> 0:33:32.160 So that's typically preceed seed and of course Series A, 0:33:32.360 --> 0:33:35.160 so on the earlier side. However, we do take a 0:33:35.600 --> 0:33:37.959 call it follow on investment. On the later stages, as 0:33:38.000 --> 0:33:40.160 we're running their growth, we get insight into how they're 0:33:40.160 --> 0:33:42.800 building their business, and that gives us ability to do 0:33:42.880 --> 0:33:45.960 really deep due diligence to understand if we want to 0:33:46.040 --> 0:33:49.280 take a larger stake in the business at the later stage. 0:33:49.400 --> 0:33:52.440 That's really interesting, this whole follow on investment because what 0:33:52.480 --> 0:33:55.040 you're writing checks of one hundred to five hundred thousand, 0:33:55.320 --> 0:33:57.680 and you then have to do three times the allocation 0:33:57.800 --> 0:34:01.040 four future rounds. What's it like when you're trying to 0:34:01.040 --> 0:34:04.200 co invest at later rounds with bigger players? Are they 0:34:04.520 --> 0:34:06.280 what are they trying to be pushy at the moment? 0:34:06.320 --> 0:34:08.320 Are you looking at pay to play being enforced a 0:34:08.360 --> 0:34:08.719 lot more? 0:34:09.760 --> 0:34:09.960 Yeah? 0:34:10.000 --> 0:34:11.600 You know, well, in the VC world, especially in the 0:34:11.640 --> 0:34:13.799 later stage, elbows get a lot sharper. You know, there's 0:34:13.840 --> 0:34:16.040 bigger names or spokes with a lot more money. I 0:34:16.040 --> 0:34:19.319 think one unique thing that FIAT can really lean on 0:34:19.440 --> 0:34:21.440 is we are their growth partners. And so when I 0:34:21.480 --> 0:34:23.560 say growth meaning we're not just being the strategy, but 0:34:23.560 --> 0:34:26.680 we're also being the execution. As really being their outsource 0:34:26.719 --> 0:34:29.000 growth team. So by us being so deeply embedded in 0:34:29.040 --> 0:34:32.880 their business and their overall success around how they're spending money, 0:34:32.920 --> 0:34:36.200 deploying money, and growing their client base and their user base, 0:34:36.480 --> 0:34:38.960 we also have the ability to really lean in and 0:34:39.600 --> 0:34:42.040 take a bigger stake in the business at a later stage. 0:34:42.040 --> 0:34:44.360 And we're not having to compete with those sharp elbows 0:34:44.400 --> 0:34:47.160 because we built such a deep relationship with them from 0:34:47.160 --> 0:34:48.680 the early stage to the late stage. 0:34:48.719 --> 0:34:52.239 Okay, so asking those founders to really fight for you 0:34:52.360 --> 0:34:55.000 basically when doing those sort of later rounds of funding, 0:34:55.200 --> 0:34:58.240 talk to about those founders that you back. I'm thinking 0:34:58.280 --> 0:35:02.280 of what you're backing. Companies that have gen z helping 0:35:03.040 --> 0:35:06.360 finance their side hustles. You've got rental home surpassive income. 0:35:06.440 --> 0:35:09.200 You've also got well disability insurance companies. 0:35:09.360 --> 0:35:12.600 Where is the suitees? What makes you invest in these companies? 0:35:12.600 --> 0:35:15.759 True? You know, we focus on fintech, but I would 0:35:15.760 --> 0:35:18.680 also say the fintech adjacent. You know, we're big believers 0:35:18.719 --> 0:35:20.640 that the future of fintech is going to be deeply 0:35:20.680 --> 0:35:23.600 embedded into every action we take. We're seeing it become 0:35:23.680 --> 0:35:25.399 part of our day to day lives. We're also big 0:35:25.440 --> 0:35:29.120 believers that finance is getting younger. You know kids that 0:35:29.200 --> 0:35:32.160 are gen Z or even gin Alpha, they are engaging 0:35:32.360 --> 0:35:34.759 in work in a very different way. They're not just 0:35:34.800 --> 0:35:38.480 doing a lemonade stand or a paper route anymore, but 0:35:38.520 --> 0:35:41.520 they're really engaging from the standpoint of reselling shoes on 0:35:41.600 --> 0:35:44.040 stock x, are opening up their Etsy store. So Copper 0:35:44.040 --> 0:35:46.480 Bank's a great example. It's a team bank and it's 0:35:46.480 --> 0:35:48.880 really built around financial literacy. We really want to make 0:35:48.920 --> 0:35:50.680 it so of these kids that are engaging with work 0:35:50.920 --> 0:35:52.839 that of course they have to pay taxes on, they're 0:35:52.840 --> 0:35:56.479 doing it in a very smart, thoughtful and educated way. 0:35:56.640 --> 0:35:59.120 So Copper is a really incredible team bank that focuses 0:35:59.160 --> 0:36:02.160 on financial literacy he first, but giving kids the ability 0:36:02.200 --> 0:36:05.240 to engage with digital finance and finance as a whole 0:36:05.440 --> 0:36:07.839 in a very unique, accessible way. 0:36:08.719 --> 0:36:12.400 As a mother, I really hope my kids remain engaged 0:36:12.400 --> 0:36:15.760 in wanting to develop the financial literacy and education. 0:36:15.560 --> 0:36:17.200 No matter what the economy looks like. 0:36:17.320 --> 0:36:19.320 But we are coming off the back of a period 0:36:19.320 --> 0:36:22.120 where it was really exciting to have a side hustle. 0:36:22.280 --> 0:36:25.120 It was really a time to think about investing in 0:36:25.160 --> 0:36:27.719 a young age because we suddenly saw meteoric growth in 0:36:27.880 --> 0:36:31.400 stocks and shares, But when we go into an economic slowdown, 0:36:31.480 --> 0:36:34.600 does that remain as appetizing and do your companies remain 0:36:34.680 --> 0:36:35.960 as appetizing to invest in. 0:36:37.040 --> 0:36:38.239 It's a really good question. You know. 0:36:38.400 --> 0:36:41.000 The public markets are always going to play a really 0:36:41.000 --> 0:36:44.480 big role on how we evaluate and put evaluation on 0:36:44.520 --> 0:36:47.600 some of these early stage businesses. As an investor, you know, 0:36:47.640 --> 0:36:50.160 we're always having to think ten years out, fifteen years out, 0:36:50.160 --> 0:36:52.160 twenty years out. If we think back to the Ubers 0:36:52.160 --> 0:36:54.560 and the airbnbs, who was just on in the last 0:36:54.800 --> 0:36:56.960 last segment, you know, it took them fifteen years to 0:36:57.320 --> 0:36:59.400 get to where they needed to be and become a 0:36:59.400 --> 0:37:02.600 really success full public companies. So it'll always affect the valuation. 0:37:02.719 --> 0:37:04.160 But it's really up to us to be able to 0:37:04.200 --> 0:37:06.600 see around the corner. You know, in two thousand and eight, 0:37:06.680 --> 0:37:09.040 no one thought that some of those companies, again the Airbnb, 0:37:09.040 --> 0:37:10.560 the Ubers, the lifts of the world, would be able 0:37:10.640 --> 0:37:13.279 to get where they got to because a lot of 0:37:13.280 --> 0:37:15.799 folks as investors are looking a month out, a quarter out, 0:37:15.840 --> 0:37:17.600 of year out. But it's really important to be able 0:37:17.640 --> 0:37:19.919 to see around the corner and think a decade out. 0:37:20.480 --> 0:37:23.920 So so yes, today the valuations are not nearly as 0:37:24.000 --> 0:37:26.000 high as they were, you know, eight months ago, a 0:37:26.040 --> 0:37:27.440 year and a half ago, especially. 0:37:27.160 --> 0:37:27.839 Two years ago. 0:37:28.160 --> 0:37:30.680 But we have to be able to see where the 0:37:30.719 --> 0:37:33.759 generational shift is going to come and be able to 0:37:33.800 --> 0:37:37.960 see how the market and more importantly, the consumers and 0:37:38.000 --> 0:37:40.759 the clients are going to evolve over time. So for us, 0:37:40.840 --> 0:37:43.000 it's really around you know, seeing into the future, and 0:37:43.040 --> 0:37:45.439 we know that in moments like this, especially in the market, 0:37:45.520 --> 0:37:48.239 some of the best opportunities are are sitting right in 0:37:48.239 --> 0:37:49.880 front of us. And it really comes down to the 0:37:49.960 --> 0:37:51.759 vcs that are going to take a chance in a 0:37:51.800 --> 0:37:54.680 market like this to understand where like the really great 0:37:54.760 --> 0:37:56.799 diamonds and the rough are going to come out, and. 0:37:56.800 --> 0:37:59.440 Often built by diversity of thought and with more than 0:37:59.480 --> 0:38:03.480 fifty percent of your portfolio being underrepresented founders, I'm sure 0:38:03.480 --> 0:38:06.520 that helps in any ways. Fiat Ventures General partner Drew Gloverer, 0:38:06.680 --> 0:38:07.600 great to have some time with you. 0:38:07.640 --> 0:38:15.280 Thank you. Some breaking news. 0:38:15.080 --> 0:38:17.600 Now from the Bloomberg Meta is planning to cut or 0:38:17.640 --> 0:38:20.759 relocate its London based Instagram employees. According to a person 0:38:20.800 --> 0:38:23.680 familiar with the matter, the London office became pretty much 0:38:23.719 --> 0:38:26.440 a center for growth for the app when it's leader, Adamiseri, 0:38:26.560 --> 0:38:29.840 moved there temporarily last year. Now, Massari is planning to 0:38:29.840 --> 0:38:32.680 relocate to the US along with staffers who aren't maaid off. 0:38:32.840 --> 0:38:34.480 It's according to a source who are not to be 0:38:34.520 --> 0:38:37.880 identified because as yet the decision hasn't been made public 0:38:37.920 --> 0:38:40.360 and the move won't be final until the completion of 0:38:40.400 --> 0:38:44.399 a required consultation period with the UK government. Now, let's 0:38:44.440 --> 0:38:47.239 talk about something different, different, but about transit. Now, the 0:38:47.239 --> 0:38:49.440 city of San Jose in California is exploring the use 0:38:49.480 --> 0:38:52.240 of electric pods to get people to and from the airport. 0:38:52.320 --> 0:38:55.400 It recently granted initial authorization for plans to develop a 0:38:55.480 --> 0:38:58.279 network of autonomous cars for the service. It's known as 0:38:58.400 --> 0:39:02.400 personal Rapid Transit, and it's tapped Silicon Valley startup Clydeways 0:39:02.560 --> 0:39:03.520 to engineer the idea. 0:39:03.760 --> 0:39:05.720 Junias Now is a founder of that company, Mark. 0:39:05.560 --> 0:39:08.160 Seger, And for the uninitiated, just tell us what personal 0:39:08.239 --> 0:39:10.240 rapid transit is all about. Why is it more efficient 0:39:10.239 --> 0:39:13.040 than say, like a subway or a bus. 0:39:14.480 --> 0:39:16.359 Well, good morning, Caroline, thank you so much for letting 0:39:16.360 --> 0:39:18.239 me be here and speak with you. So what we 0:39:18.280 --> 0:39:20.319 do is the exact opposite of a bus or a train. 0:39:20.719 --> 0:39:23.120 Rather than cramming lots of people into one vehicle that 0:39:23.200 --> 0:39:25.799 stops from stop to stop to stop and you have 0:39:25.840 --> 0:39:28.520 to wait on it, we bring vehicles to you. Every 0:39:28.520 --> 0:39:32.640 passenger gets their own vehicle on demand anytime twenty four 0:39:32.680 --> 0:39:35.120 to seven, and that vehicle only stops once once it's 0:39:35.160 --> 0:39:38.000 on it's journey, which is at your destination. And so 0:39:38.040 --> 0:39:41.200 we're inverting the paradigm of shared vehicles to private vehicles. 0:39:41.520 --> 0:39:43.960 But ironically we can move more people that way at 0:39:44.000 --> 0:39:45.200 a fraction of the cost. 0:39:45.480 --> 0:39:48.200 Interesting it kind of makes me think of the Minority Report, 0:39:48.200 --> 0:39:50.160 where we kind of still Tom Cruise breaking out on one. 0:39:50.239 --> 0:39:52.520 But these ideas have been long in the making. 0:39:52.520 --> 0:39:54.279 In fact, I think it's London Heathrow has had them 0:39:54.320 --> 0:39:56.680 for a while, so has to buy Why isn't sort of. 0:39:56.719 --> 0:40:00.239 Picked up in mass They have been the ide idea 0:40:00.320 --> 0:40:03.359 of PRT personal rappid trands. It has indeed been a 0:40:03.480 --> 0:40:05.359 very around for a very long time, but no one 0:40:05.360 --> 0:40:07.680 could make it work. And frankly we have to thank 0:40:07.760 --> 0:40:10.239 the one hundred dodds billion dollars a VC capital that 0:40:10.280 --> 0:40:13.880 went into autonomous vehicle technology, which, while it isn't ready, 0:40:14.120 --> 0:40:17.040 it has provided the platform to make a closed autonomous 0:40:17.360 --> 0:40:20.200 personal rappid trendsit system like ours work and work really 0:40:20.239 --> 0:40:20.680 really well. 0:40:21.280 --> 0:40:25.680 So you're authorized for pre development agreement. What next? What 0:40:25.800 --> 0:40:28.160 about environmental engineering reviews and the likes? 0:40:29.000 --> 0:40:31.720 Well, that's precisely what's next. But because we're a fraction 0:40:31.840 --> 0:40:35.000 of the size of a traditional rail system, for example, 0:40:35.200 --> 0:40:36.920 we're also at a fraction of the cost and a 0:40:37.000 --> 0:40:38.960 fraction of the time. So we're going to go through 0:40:39.000 --> 0:40:41.840 environmental reviews next, but at a fairly rapid clip, just 0:40:41.880 --> 0:40:44.399 because our footprint is so much smaller. And then we're 0:40:44.400 --> 0:40:46.640 going to build it. But again, building it happens in 0:40:46.680 --> 0:40:49.879 a matter of months, not typically decades, or maybe even 0:40:49.920 --> 0:40:50.480 longer than that. 0:40:50.520 --> 0:40:51.480 In some instances. 0:40:51.880 --> 0:40:53.719 We'll see how quickly this gets on the rails. We 0:40:53.760 --> 0:40:57.239 thank you so much, Glideway's founder Mark Sega. There and 0:40:57.280 --> 0:40:59.680 that does it for this edition of BlueBag Technology. Do 0:40:59.800 --> 0:41:01.839 not forget to check out our podcast. You can find 0:41:01.840 --> 0:41:04.520 it on the terminal. You can go to Apples, Spotify, iHeart, 0:41:04.840 --> 0:41:07.040 and so much more to be digesting tomorrow tune in, 0:41:07.120 --> 0:41:09.560 of course, we'll have the latest on the analysis around 0:41:09.600 --> 0:41:13.080 Tesla's numbers. They're coming after the close of market today. 0:41:13.360 --> 0:41:16.799 Stay tuned for Romain Mustic and Co's reporting across that 0:41:17.360 --> 0:41:20.280 from New York, from San Francisco, this is Bloomberg.