1 00:00:01,480 --> 00:00:04,880 Speaker 1: From the heart of where innovation, money and power Collie 2 00:00:05,080 --> 00:00:09,799 Speaker 1: in Silicon Valley, NBN. This is Bloomberg Technology with Caroline 3 00:00:09,840 --> 00:00:22,400 Speaker 1: Hide and Ed Ludlow. 4 00:00:25,079 --> 00:00:27,880 Speaker 2: I'm Caroline Hide Bloomberg's melted quarters in New York. Ed Ludlow, 5 00:00:28,000 --> 00:00:31,040 Speaker 2: He's an assignment in Sun Valley. This is Bloomberg Technology. 6 00:00:31,440 --> 00:00:34,159 Speaker 3: Coming up. Microsoft wins us CORT approval to move. 7 00:00:34,000 --> 00:00:36,960 Speaker 2: Forward with its sixty nine billion dollar deal for Activision Blizzard. 8 00:00:37,280 --> 00:00:38,839 Speaker 3: We'll discuss the next steps of the. 9 00:00:38,840 --> 00:00:41,880 Speaker 2: FTC face as a loss in blocking the biggest ever 10 00:00:41,960 --> 00:00:45,320 Speaker 2: gaming deal plus Amazon Prime Day kicks off shop is 11 00:00:45,320 --> 00:00:48,320 Speaker 2: expected to spend upwards of thirteen billion dollars or break 12 00:00:48,360 --> 00:00:50,839 Speaker 2: down what to expect from the e commerce giants, and 13 00:00:51,000 --> 00:00:52,159 Speaker 2: we go live to Ed. 14 00:00:52,200 --> 00:00:53,680 Speaker 3: Ludlow in Sun Valley, Idaho. 15 00:00:53,920 --> 00:00:56,440 Speaker 2: Billionaires also to send on the mountains for their annual 16 00:00:56,480 --> 00:00:59,840 Speaker 2: gathering or break down what to expect as artificial intelligence, 17 00:01:00,040 --> 00:01:03,760 Speaker 2: future streaming, and of course there's massive gaming deals dominate 18 00:01:03,960 --> 00:01:07,520 Speaker 2: the conversation. Let's dig in on the Minushai to deal 19 00:01:07,600 --> 00:01:10,480 Speaker 2: with Microsoft's court when here in the US we've got 20 00:01:10,600 --> 00:01:13,760 Speaker 2: Bloomberg's Malati Nayak with us. Who's covering this trial day 21 00:01:13,840 --> 00:01:16,319 Speaker 2: in day out for US and Malati. Before I start 22 00:01:16,319 --> 00:01:18,840 Speaker 2: asking you about the UK, just dwell on what's happening 23 00:01:18,840 --> 00:01:21,360 Speaker 2: in the United States right now, because it felt like 24 00:01:21,440 --> 00:01:23,760 Speaker 2: you'd already called it that the judge seemed to be 25 00:01:23,959 --> 00:01:25,800 Speaker 2: erring towards Microsoft and Activision. 26 00:01:26,800 --> 00:01:28,560 Speaker 4: That's right. You know, we did see in the last 27 00:01:28,640 --> 00:01:30,839 Speaker 4: round of questioning by the judge that she was really 28 00:01:31,319 --> 00:01:33,720 Speaker 4: asking the FTC for a lot of evidence that they 29 00:01:33,720 --> 00:01:36,160 Speaker 4: were unable to sort of come up with in court. 30 00:01:36,520 --> 00:01:38,959 Speaker 4: So today we have a ruling with the judge has 31 00:01:39,040 --> 00:01:42,480 Speaker 4: denied a preliminary injunction, which is basically a request by 32 00:01:42,560 --> 00:01:46,679 Speaker 4: the agency to block the deal while the while it's 33 00:01:46,760 --> 00:01:50,440 Speaker 4: longer in a challenge to the deal, is spending. But 34 00:01:50,560 --> 00:01:54,440 Speaker 4: as we've seen, you know, something similar happened with Meta 35 00:01:54,640 --> 00:01:59,840 Speaker 4: and Meta's acquisition within and that deal was also sort 36 00:01:59,880 --> 00:02:02,920 Speaker 4: of a loss for the FTC at this stage, and 37 00:02:02,960 --> 00:02:05,680 Speaker 4: the FTC backed out. So it's possible that you know, 38 00:02:05,760 --> 00:02:08,640 Speaker 4: the FDC will back out because there is an administrative 39 00:02:09,680 --> 00:02:13,200 Speaker 4: sort of a court case that the FDC still has 40 00:02:13,200 --> 00:02:16,799 Speaker 4: spending against Microsoft, a sort of internal court case. That's 41 00:02:17,200 --> 00:02:19,560 Speaker 4: that's you know, going to happen in the next couple 42 00:02:19,560 --> 00:02:20,119 Speaker 4: of weeks. 43 00:02:20,400 --> 00:02:23,080 Speaker 2: Okay, so it's not a full gone conclusion, but we 44 00:02:23,120 --> 00:02:26,760 Speaker 2: anticipate and certainly the market anticipates that it's more likely 45 00:02:26,880 --> 00:02:30,120 Speaker 2: to get done ultimately. How much of a knock is 46 00:02:30,160 --> 00:02:32,720 Speaker 2: this to the FTC, as you say, they seem to 47 00:02:32,760 --> 00:02:35,040 Speaker 2: be trying to take on really tough cases here. 48 00:02:36,040 --> 00:02:37,800 Speaker 4: Yeah, you know, this has been a big test for 49 00:02:37,800 --> 00:02:40,839 Speaker 4: the FTC's ability, especially when it comes to challenging big 50 00:02:40,919 --> 00:02:44,400 Speaker 4: tech MNA deals. They really needed this win, you know, 51 00:02:44,480 --> 00:02:47,080 Speaker 4: especially after what happened. This is coming, you know, just 52 00:02:47,400 --> 00:02:49,160 Speaker 4: very close in the you know, on the heels of 53 00:02:49,200 --> 00:02:54,680 Speaker 4: what happened with FTC and FTC challenge to Meta and within. 54 00:02:55,160 --> 00:02:57,880 Speaker 4: So it just seems like even in speaking with a 55 00:02:57,919 --> 00:03:01,400 Speaker 4: lot of folks who were in court the merger arb charges, 56 00:03:01,440 --> 00:03:03,959 Speaker 4: they were very very closely watching this case because I 57 00:03:04,000 --> 00:03:06,320 Speaker 4: think they were interested in seeing where the FTC might 58 00:03:06,360 --> 00:03:09,960 Speaker 4: go moving forward. You know, is the FDC actually bringing 59 00:03:10,240 --> 00:03:14,959 Speaker 4: some cases which are leading to this sort of losing streak. 60 00:03:15,000 --> 00:03:17,480 Speaker 4: Do they have to sort of think perhaps carefully about 61 00:03:17,560 --> 00:03:21,440 Speaker 4: battles that they want to sort of sort of enter 62 00:03:21,560 --> 00:03:23,840 Speaker 4: and sort of win. So we'll have to see what 63 00:03:23,919 --> 00:03:27,640 Speaker 4: happens next in terms of FTC moving forward with other deals, 64 00:03:27,639 --> 00:03:32,120 Speaker 4: but we've seen already, you know, Chairman Lina Khan, She's 65 00:03:32,240 --> 00:03:36,240 Speaker 4: just been one of the most aggressive tresbusters we've seen 66 00:03:36,280 --> 00:03:38,560 Speaker 4: in the US in decades. So we'll have to see 67 00:03:38,600 --> 00:03:41,840 Speaker 4: what the FTC decides to do next after this particular ruling. 68 00:03:42,000 --> 00:03:44,120 Speaker 2: I'm sure Amazon is keeping a close eye as well. 69 00:03:44,200 --> 00:03:47,120 Speaker 2: Alasin Naya, thank you so much for bringing us the expertise. 70 00:03:47,320 --> 00:03:49,720 Speaker 2: Let's just get the Microsoft angle, an Andy, the International 71 00:03:49,720 --> 00:03:53,600 Speaker 2: angle next to Bruemmegsdina Bass and Diana. I'm sure this 72 00:03:53,720 --> 00:03:56,120 Speaker 2: is going to be joyous Forasati and Adela, and indeed 73 00:03:56,120 --> 00:03:58,880 Speaker 2: Bobby Kotek, They're both going to be over there in 74 00:03:59,000 --> 00:04:01,880 Speaker 2: Sun Valley. But there are still some stumbling blocks. What 75 00:04:01,920 --> 00:04:03,960 Speaker 2: do you make of the headline around Microsoft and activision 76 00:04:04,000 --> 00:04:07,520 Speaker 2: in the UKCMA, the Competition Markets Authority also perhaps pausing 77 00:04:07,520 --> 00:04:08,160 Speaker 2: that litigation. 78 00:04:09,600 --> 00:04:10,480 Speaker 3: Yeah, all eyes. 79 00:04:10,360 --> 00:04:13,600 Speaker 5: Around the CMA right now. The minute that this ruling 80 00:04:13,640 --> 00:04:16,400 Speaker 5: came out this morning, everybody's attention turned away from that 81 00:04:16,440 --> 00:04:19,200 Speaker 5: courton in California and across the pond to the UK, 82 00:04:19,600 --> 00:04:22,520 Speaker 5: which is the remaining stumbling block for this deal. Now 83 00:04:22,800 --> 00:04:25,960 Speaker 5: the CMA has just in the last couple of minutes 84 00:04:25,960 --> 00:04:28,720 Speaker 5: said that they are willing to consider any proposals for 85 00:04:28,839 --> 00:04:32,120 Speaker 5: Microsoft to restructure the transaction in a manner that would 86 00:04:32,120 --> 00:04:36,040 Speaker 5: address their concerns, and as a result, they and Microsoft 87 00:04:36,120 --> 00:04:38,400 Speaker 5: and Activision have asked the court in the UK to 88 00:04:38,440 --> 00:04:42,080 Speaker 5: pause the litigation so that they can focus on proposals. 89 00:04:42,600 --> 00:04:45,520 Speaker 5: Microsoft has issued statement as well, saying that they still 90 00:04:45,520 --> 00:04:48,799 Speaker 5: don't agree with the CMA's objections, but they are interested 91 00:04:48,800 --> 00:04:50,240 Speaker 5: in trying to find a way to resolve them. 92 00:04:50,960 --> 00:04:56,359 Speaker 2: Two the FTC's perspective, have they kind of won a 93 00:04:56,360 --> 00:05:00,760 Speaker 2: little bit, or indeed, have competition authorities at least gleaned 94 00:05:00,839 --> 00:05:03,599 Speaker 2: some sort of changes to the ultimate deal to ensure 95 00:05:03,600 --> 00:05:04,719 Speaker 2: that that might be competition. 96 00:05:04,800 --> 00:05:06,720 Speaker 6: Is this almost a win win on every side, Dina. 97 00:05:07,640 --> 00:05:09,080 Speaker 7: So I don't know that the FTC will see it 98 00:05:09,120 --> 00:05:09,960 Speaker 7: that way. We'd have to ask. 99 00:05:09,960 --> 00:05:12,960 Speaker 8: The judge actually made that point in court at one point, 100 00:05:13,080 --> 00:05:15,960 Speaker 8: saying that you know the fact that Microsoft had signed 101 00:05:16,000 --> 00:05:18,600 Speaker 8: some of these agreements to put call of duty on 102 00:05:18,680 --> 00:05:20,720 Speaker 8: other platforms and he was willing to sign on with 103 00:05:21,279 --> 00:05:23,440 Speaker 8: Sony meant to the FTC on some level had already won. 104 00:05:23,480 --> 00:05:24,680 Speaker 7: And you know, when you look. 105 00:05:24,560 --> 00:05:27,039 Speaker 9: Through her ruling, it was one of the reasons that 106 00:05:27,080 --> 00:05:30,520 Speaker 9: she found the FTC's case was not persuasive, you know, 107 00:05:30,640 --> 00:05:33,160 Speaker 9: is that Microsoft had from the minute the deal was announced, 108 00:05:33,240 --> 00:05:36,000 Speaker 9: it made it clear that they wanted to, you know, 109 00:05:36,040 --> 00:05:38,520 Speaker 9: to put it on other platforms. She made similar arguments 110 00:05:38,560 --> 00:05:40,760 Speaker 9: on some of the arguments the FTC was making on 111 00:05:41,080 --> 00:05:43,919 Speaker 9: lack of you know, worse than the competitive picture and 112 00:05:43,960 --> 00:05:46,599 Speaker 9: cloud gaming as well as gaming subscriptions, you know, in 113 00:05:46,640 --> 00:05:49,680 Speaker 9: those areas. She seemed to find some of Microsoft's arguments 114 00:05:49,920 --> 00:05:51,440 Speaker 9: more persuasive than the FTCs. 115 00:05:51,800 --> 00:05:56,920 Speaker 2: How big a relief is this to Brasmith and Vestia now, well, again. 116 00:05:56,720 --> 00:05:58,560 Speaker 9: They still to get through the CMA that you have 117 00:05:58,640 --> 00:06:01,080 Speaker 9: to realize that if the judge ruled the opposite wave 118 00:06:01,200 --> 00:06:03,040 Speaker 9: she had issued a preliminary injunction. 119 00:06:02,680 --> 00:06:03,880 Speaker 3: The deal was on the dead. 120 00:06:04,240 --> 00:06:07,400 Speaker 5: Bobby Kodik, while on the stand, said that, you know, 121 00:06:07,440 --> 00:06:09,960 Speaker 5: if there was a preliminary injunction issued, his board was 122 00:06:10,080 --> 00:06:11,200 Speaker 5: likely back away. 123 00:06:10,960 --> 00:06:11,479 Speaker 7: From the deal. 124 00:06:12,200 --> 00:06:15,200 Speaker 9: Microsoft made a similar point in their preliminary filings in 125 00:06:15,240 --> 00:06:18,960 Speaker 9: the case there was really not a way forward for 126 00:06:19,040 --> 00:06:21,680 Speaker 9: this deal if the judge had issued a preliminary injunction. 127 00:06:22,040 --> 00:06:24,400 Speaker 5: They still have to get through the UK situation. 128 00:06:25,120 --> 00:06:27,000 Speaker 2: As you say, all eyes on the UK now and 129 00:06:27,040 --> 00:06:29,520 Speaker 2: the CMA Deana Bass, brilliant to have you on. Thank 130 00:06:29,560 --> 00:06:32,560 Speaker 2: you so much for the latest on Microsoft's perspective to 131 00:06:32,600 --> 00:06:33,120 Speaker 2: that ruling. 132 00:06:33,160 --> 00:06:35,080 Speaker 3: Meanwhile, coming up, Amazon Prime. 133 00:06:34,920 --> 00:06:38,160 Speaker 6: Day kicks off and Shop was prepared to spend millions. 134 00:06:38,440 --> 00:06:40,919 Speaker 2: I'll get inside the head of Amazon W John Felton, 135 00:06:40,920 --> 00:06:45,840 Speaker 2: I'm pleased to say, Amazon Senior vice president of worldwide Operations. Meanwhile, look, 136 00:06:46,080 --> 00:06:48,960 Speaker 2: there are other deals that still are being assessed by 137 00:06:48,960 --> 00:06:49,920 Speaker 2: certain authorities. 138 00:06:50,200 --> 00:06:51,960 Speaker 3: And VMware is currently. 139 00:06:51,760 --> 00:06:53,360 Speaker 2: Jumping more than five and a half percent as you 140 00:06:53,360 --> 00:06:56,160 Speaker 2: can see session highs on an FT report that the 141 00:06:56,160 --> 00:06:59,880 Speaker 2: EU is set to clear its own sixty nine billion 142 00:07:00,080 --> 00:07:04,800 Speaker 2: dollar acquisition by Broadcom. So all eyes on these competition 143 00:07:04,839 --> 00:07:05,799 Speaker 2: authorities at the moment. 144 00:07:06,240 --> 00:07:18,760 Speaker 3: From New York, this is Bloomberg. I don't know if 145 00:07:18,760 --> 00:07:20,920 Speaker 3: you noticed, but Amazon Prime Day is underweight. 146 00:07:21,080 --> 00:07:23,760 Speaker 2: Shop is estimated to eclipse last year's spend of twelve 147 00:07:23,800 --> 00:07:26,480 Speaker 2: billion dollars worldwide. For more on what we can expect, 148 00:07:26,520 --> 00:07:29,040 Speaker 2: let's bring in Punum Goil from Bloomberg Intelligence right here 149 00:07:29,080 --> 00:07:29,480 Speaker 2: in New York. 150 00:07:29,520 --> 00:07:31,240 Speaker 3: So please to have you Punum here. 151 00:07:31,480 --> 00:07:34,720 Speaker 2: I'm expecting consumers to be enticed as much as previous years. 152 00:07:34,760 --> 00:07:36,560 Speaker 2: Is this going to be the biggest ever. It should 153 00:07:36,600 --> 00:07:37,320 Speaker 2: be the biggest ever. 154 00:07:37,400 --> 00:07:38,040 Speaker 3: It always is. 155 00:07:38,320 --> 00:07:40,720 Speaker 10: Yeah, consumers are focused on value, right, so Prime Day 156 00:07:40,800 --> 00:07:44,000 Speaker 10: just brings value back up front consumers. Mind, there are 157 00:07:44,000 --> 00:07:46,600 Speaker 10: our deals, there have been deals all year, but I 158 00:07:46,600 --> 00:07:48,520 Speaker 10: can tell you just from what I've been seeing all 159 00:07:48,600 --> 00:07:50,760 Speaker 10: day is that the deals are bigger than they have 160 00:07:50,880 --> 00:07:54,320 Speaker 10: been all year. They're rolling out lightning deals. Some things 161 00:07:54,320 --> 00:07:57,320 Speaker 10: are already sold out, so I think consumers will just 162 00:07:57,360 --> 00:08:00,200 Speaker 10: be watching and seeing a lot of consumers are saying 163 00:08:00,320 --> 00:08:03,000 Speaker 10: that they have a list going into Prime Day, so 164 00:08:03,120 --> 00:08:06,080 Speaker 10: clearly budget focused. And then there are many fifty percent 165 00:08:06,200 --> 00:08:08,760 Speaker 10: according to our survey, that will just buy as they 166 00:08:08,840 --> 00:08:09,440 Speaker 10: see deals. 167 00:08:10,280 --> 00:08:11,840 Speaker 3: Okay, so looking for value. 168 00:08:12,480 --> 00:08:15,200 Speaker 2: What about sort of the global perspective of this as well? 169 00:08:15,240 --> 00:08:18,040 Speaker 2: How does the Prime Day offering vary? I'm looking at 170 00:08:18,040 --> 00:08:19,640 Speaker 2: a US offering. What does it look like in the 171 00:08:19,720 --> 00:08:20,400 Speaker 2: UK and Europe? 172 00:08:20,480 --> 00:08:22,320 Speaker 10: Well, remember Prime Day? If you think about like just 173 00:08:22,440 --> 00:08:24,800 Speaker 10: Prime members, right, one hundred and sixty million of the 174 00:08:24,800 --> 00:08:27,440 Speaker 10: two hundred plus million members are in the US, so 175 00:08:27,600 --> 00:08:30,280 Speaker 10: it is definitely largely a US event, but it is 176 00:08:30,320 --> 00:08:33,720 Speaker 10: also international and everywhere across the world. I think everyone 177 00:08:33,760 --> 00:08:36,320 Speaker 10: is crunched for cash right now. Infestrates are higher, there 178 00:08:36,360 --> 00:08:39,880 Speaker 10: are macro economic tensions, your political tensions around the world, 179 00:08:40,120 --> 00:08:43,480 Speaker 10: so the value proposition that Amazon offers on Prime Day 180 00:08:43,760 --> 00:08:46,320 Speaker 10: will also be sought after abroad as well as here. 181 00:08:46,440 --> 00:08:48,600 Speaker 2: And just remind us how important is to the overall 182 00:08:48,760 --> 00:08:51,079 Speaker 2: company and indeed there for the investor, because what's interesting 183 00:08:51,080 --> 00:08:52,920 Speaker 2: in the last few years, you've actually seen a bit 184 00:08:52,920 --> 00:08:54,880 Speaker 2: of a sell off of sort of a fade into 185 00:08:55,040 --> 00:08:56,360 Speaker 2: Prime Day from a stock perspective. 186 00:08:56,559 --> 00:08:58,559 Speaker 10: I think it's important in it's eight percent of the 187 00:08:58,640 --> 00:09:02,640 Speaker 10: quarter's sales and just two so clearly still very important 188 00:09:02,640 --> 00:09:05,320 Speaker 10: for Amazon. But also it keeps Amazon top of mind, 189 00:09:05,400 --> 00:09:07,800 Speaker 10: right so as you think about consumers shopping for the summer, 190 00:09:07,840 --> 00:09:09,800 Speaker 10: for back to school and even the holidays. You know, 191 00:09:09,840 --> 00:09:12,000 Speaker 10: we're hearing people are shopping for the holidays as early 192 00:09:12,040 --> 00:09:14,520 Speaker 10: as right now. So it just keeps some relevant, It 193 00:09:14,600 --> 00:09:16,640 Speaker 10: keeps some top of mind. It shows that we have 194 00:09:16,760 --> 00:09:19,600 Speaker 10: everything here and you can buy it. But Amazon's not 195 00:09:19,760 --> 00:09:22,480 Speaker 10: the only one offering deals today and tomorrow. If we've 196 00:09:22,520 --> 00:09:25,320 Speaker 10: seen Target Circle Week, we've seen Walmart, you know, doing 197 00:09:25,360 --> 00:09:27,880 Speaker 10: its Plus week, So there's a lot going on outside too. 198 00:09:28,200 --> 00:09:29,840 Speaker 3: There's always a competition. Pun I'm Goyl. 199 00:09:29,880 --> 00:09:31,559 Speaker 2: Thank you so much breaking it down from Blue Meg 200 00:09:31,600 --> 00:09:34,319 Speaker 2: Intelligence and look, we can go straight to the horse's 201 00:09:34,320 --> 00:09:36,440 Speaker 2: mouth right now. I'm very pleased to welcome John Felton, 202 00:09:36,520 --> 00:09:39,479 Speaker 2: Amazon Senior vice president of worldwide Operations, who's. 203 00:09:39,400 --> 00:09:40,760 Speaker 3: Probably having a pretty busy day. 204 00:09:40,840 --> 00:09:41,040 Speaker 5: John. 205 00:09:41,120 --> 00:09:42,760 Speaker 6: So we're appreciative if you're fitting us in. 206 00:09:42,800 --> 00:09:46,240 Speaker 2: And I mean you have caused a sensation. Other companies 207 00:09:46,280 --> 00:09:48,200 Speaker 2: do try to copy you on the same day at 208 00:09:48,200 --> 00:09:50,640 Speaker 2: the same sort of a time. How do you set 209 00:09:50,640 --> 00:09:52,880 Speaker 2: yourselves apart and keep people wanting to come back? 210 00:09:53,440 --> 00:09:55,600 Speaker 11: Yeah, it's Christmas in July, and it's one of our 211 00:09:55,640 --> 00:09:58,320 Speaker 11: favorite times a year. We're noppening into our ninth prime 212 00:09:58,400 --> 00:10:01,040 Speaker 11: day and so really exciting about it. It has just become 213 00:10:01,120 --> 00:10:03,720 Speaker 11: kind of its own events, which we love. This year, 214 00:10:03,760 --> 00:10:05,760 Speaker 11: I do expect to be bigger than ever. We've got 215 00:10:05,760 --> 00:10:09,280 Speaker 11: more deals than ever before. We've got millions and millions 216 00:10:09,320 --> 00:10:12,000 Speaker 11: of deals. They're dropping every thirty minutes, and so we're 217 00:10:12,000 --> 00:10:14,760 Speaker 11: really excited about what we're seeing so far and the 218 00:10:14,760 --> 00:10:16,880 Speaker 11: things I'm thinking about. It's like, we got fifty percent 219 00:10:16,920 --> 00:10:19,640 Speaker 11: off the top selling toys, percent off the top selling 220 00:10:19,679 --> 00:10:23,360 Speaker 11: TVs was seventy five percent off amazonderleasss there really is 221 00:10:23,400 --> 00:10:23,959 Speaker 11: a deal for. 222 00:10:23,960 --> 00:10:24,800 Speaker 7: Everybody out there. 223 00:10:24,920 --> 00:10:27,200 Speaker 11: I've even got friends who they use Prime Data kind 224 00:10:27,240 --> 00:10:29,200 Speaker 11: of shop for their everyday essentials of kind of getting 225 00:10:29,200 --> 00:10:30,320 Speaker 11: the tooth base, getting. 226 00:10:30,080 --> 00:10:32,240 Speaker 7: The shampoo, and so it's a really big day. 227 00:10:32,320 --> 00:10:35,440 Speaker 11: We're since society kind of thank Prime members for their loyalty, 228 00:10:35,640 --> 00:10:36,880 Speaker 11: and the best way we know how to do that. 229 00:10:36,920 --> 00:10:38,760 Speaker 7: Is give them value and give them savings. 230 00:10:39,000 --> 00:10:41,400 Speaker 11: One stat that I still still think is amazing is 231 00:10:41,760 --> 00:10:45,000 Speaker 11: last year Prime members saved one point seven billion dollars 232 00:10:45,080 --> 00:10:47,000 Speaker 11: and we're hoping to explic the clips out this year 233 00:10:47,360 --> 00:10:47,840 Speaker 11: and make. 234 00:10:47,720 --> 00:10:48,480 Speaker 3: It more personal. 235 00:10:48,640 --> 00:10:51,240 Speaker 2: How are you using technology in and of itself to 236 00:10:51,320 --> 00:10:53,319 Speaker 2: try and make sure that I feel targeted in the 237 00:10:53,400 --> 00:10:53,800 Speaker 2: right way. 238 00:10:54,559 --> 00:10:55,680 Speaker 7: Yeah, that's a great question. 239 00:10:56,640 --> 00:10:58,920 Speaker 11: A lot of our AI technology is really focused on 240 00:10:58,920 --> 00:11:02,280 Speaker 11: the personalization. You'll even see it this year differently kind 241 00:11:02,280 --> 00:11:04,160 Speaker 11: of when you look at the website for yourself, it's 242 00:11:04,200 --> 00:11:06,319 Speaker 11: different than looking at it for your friends. We are 243 00:11:06,360 --> 00:11:09,440 Speaker 11: working kind of day and night to keep improving a personalization, 244 00:11:10,280 --> 00:11:12,560 Speaker 11: building kind of an AI technology to really help that. 245 00:11:12,760 --> 00:11:14,720 Speaker 11: So we give you a really customized experience you can 246 00:11:14,760 --> 00:11:15,800 Speaker 11: find the deals that work for you. 247 00:11:16,400 --> 00:11:18,440 Speaker 2: And also using Alexa right not only you able to 248 00:11:18,440 --> 00:11:20,240 Speaker 2: sort of buy the latest Alexa, but you can use 249 00:11:20,280 --> 00:11:20,920 Speaker 2: it to shop too. 250 00:11:21,760 --> 00:11:24,120 Speaker 11: Yeah, there's some great new Alextra features we have now. 251 00:11:24,160 --> 00:11:26,520 Speaker 11: Is anything that's in your kind of your shopping cart 252 00:11:26,559 --> 00:11:29,080 Speaker 11: right now? And and you're wishless? Anything unsaved for later 253 00:11:29,280 --> 00:11:31,400 Speaker 11: if it goes on deal or Lexa will announce it 254 00:11:31,400 --> 00:11:33,040 Speaker 11: to you and let you know, Hey, this just went 255 00:11:33,080 --> 00:11:33,680 Speaker 11: on a great deal. 256 00:11:33,720 --> 00:11:34,440 Speaker 7: Do you want to buy it? 257 00:11:34,480 --> 00:11:36,920 Speaker 11: And so at Helping customers find the deal that's right 258 00:11:36,960 --> 00:11:39,160 Speaker 11: for them, helping with their most excited core is really 259 00:11:39,200 --> 00:11:39,840 Speaker 11: what's Fine Day. 260 00:11:39,760 --> 00:11:40,280 Speaker 7: Is all about. 261 00:11:40,800 --> 00:11:43,280 Speaker 2: Of course, we can see people behind you busily at work. 262 00:11:43,520 --> 00:11:46,240 Speaker 2: How much of a logistical feat is that? How much 263 00:11:46,280 --> 00:11:48,520 Speaker 2: work you have to put in? How ensuring are you 264 00:11:48,640 --> 00:11:51,160 Speaker 2: that you're sort of as close to the customer as 265 00:11:51,200 --> 00:11:51,560 Speaker 2: you can be. 266 00:11:52,360 --> 00:11:55,760 Speaker 7: Yeah, let's see what we plan for months for Prime Day. 267 00:11:56,200 --> 00:11:58,319 Speaker 11: And I've kind I'm here in Melville, New York, in 268 00:11:58,400 --> 00:12:00,880 Speaker 11: a sub Same Day building, and they're just excited. The 269 00:12:00,880 --> 00:12:03,360 Speaker 11: employees here are excited. They love Prime Day as much 270 00:12:03,400 --> 00:12:06,079 Speaker 11: as Prime members do. And so you can feel the excitement. 271 00:12:06,120 --> 00:12:08,559 Speaker 11: You can feel the buzz in here, and everyone's expended 272 00:12:08,559 --> 00:12:09,920 Speaker 11: to go to deliver all the gifts we have. 273 00:12:10,200 --> 00:12:11,200 Speaker 3: What about the robots. 274 00:12:12,240 --> 00:12:13,480 Speaker 7: The robots are also behind me. 275 00:12:14,120 --> 00:12:17,160 Speaker 11: There's now seven hundred and fifty thousand of them running around, 276 00:12:17,160 --> 00:12:18,959 Speaker 11: so you can kind of see that the shelf kind 277 00:12:18,960 --> 00:12:21,079 Speaker 11: of comes to the employee right now. And so that's 278 00:12:21,120 --> 00:12:23,120 Speaker 11: what we felt kind of really good about kind of 279 00:12:23,160 --> 00:12:26,240 Speaker 11: our robotic technology. It's how do we help our employees 280 00:12:26,320 --> 00:12:28,120 Speaker 11: kind of do their jobs better, how do we help 281 00:12:28,160 --> 00:12:29,520 Speaker 11: them do it safer, how do we help them do 282 00:12:29,559 --> 00:12:31,439 Speaker 11: it more productively, and how do they kind of really 283 00:12:31,520 --> 00:12:34,000 Speaker 11: enjoy the collaborative experience with the robots. 284 00:12:34,280 --> 00:12:37,200 Speaker 2: Of course, with great success comes great responsibility, and there 285 00:12:37,240 --> 00:12:41,239 Speaker 2: has been that focus on ensuring that the workforce labor. 286 00:12:41,040 --> 00:12:41,719 Speaker 3: Is treated right. 287 00:12:41,840 --> 00:12:44,920 Speaker 2: There's also it seems to be a focus on, well 288 00:12:44,920 --> 00:12:47,400 Speaker 2: that you're supporting small business here. Just tell us, sister, 289 00:12:47,840 --> 00:12:50,160 Speaker 2: why you're looking at that and why perhaps you don't 290 00:12:50,160 --> 00:12:52,319 Speaker 2: want to seem like you're meeting everyone's lunch. 291 00:12:52,920 --> 00:12:55,640 Speaker 11: Yeah, it's exactly right. Small business is incredibly for it. 292 00:12:55,640 --> 00:12:59,160 Speaker 11: It's been powering Amazon for years. Sixty percent of everything 293 00:12:59,160 --> 00:13:02,360 Speaker 11: we sell is from small businesses, and there's a lot 294 00:13:02,400 --> 00:13:04,200 Speaker 11: of new features that we have on the website this year. 295 00:13:05,440 --> 00:13:07,439 Speaker 11: We recently app launched the ability to kind of filter 296 00:13:07,520 --> 00:13:10,200 Speaker 11: your surf results by small business results. I was actually 297 00:13:10,200 --> 00:13:12,600 Speaker 11: playing around with this this morning, and we're doing hot sauce, 298 00:13:12,760 --> 00:13:14,440 Speaker 11: and I was able to find kind of hot sauce 299 00:13:15,400 --> 00:13:18,640 Speaker 11: than your small businesses that are supporting in logout where 300 00:13:18,679 --> 00:13:20,640 Speaker 11: I'm at right now, and so really kind of helping 301 00:13:20,679 --> 00:13:21,960 Speaker 11: small businesses be successful. 302 00:13:22,080 --> 00:13:24,160 Speaker 7: Small businesses are kind of a lot of the drivers 303 00:13:24,160 --> 00:13:24,640 Speaker 7: of the growth. 304 00:13:24,840 --> 00:13:26,800 Speaker 11: They're getting more deals in ever of this Prime Day, 305 00:13:26,840 --> 00:13:28,680 Speaker 11: and so we're really excited about how do we support them. 306 00:13:29,360 --> 00:13:32,920 Speaker 2: Does the consumer ultimately not just talk the talk but 307 00:13:33,120 --> 00:13:35,480 Speaker 2: walk the walk on that, Do they really care about 308 00:13:35,520 --> 00:13:37,600 Speaker 2: small businesses? Do they really care about the fact that 309 00:13:37,640 --> 00:13:41,400 Speaker 2: you're perhaps closer to them, so less of an environmental perspective. 310 00:13:41,440 --> 00:13:42,920 Speaker 3: What do you see from the consumer? 311 00:13:44,480 --> 00:13:46,760 Speaker 7: That's what we're seeing is consumers are having a great 312 00:13:46,800 --> 00:13:47,480 Speaker 7: Prime day to day. 313 00:13:47,800 --> 00:13:49,280 Speaker 11: One of the things I've been kind of happy with 314 00:13:49,440 --> 00:13:52,040 Speaker 11: is I do think of the US consumer, even the 315 00:13:52,040 --> 00:13:55,240 Speaker 11: global consumer. They've got high they're doing with high inflation, 316 00:13:55,440 --> 00:13:58,720 Speaker 11: high interest rates, but they've been surprisingly resilient. They continue 317 00:13:58,760 --> 00:14:00,600 Speaker 11: to kind of come back, but they are looking. 318 00:14:00,400 --> 00:14:01,839 Speaker 7: For value, and that's what Prime Day is. 319 00:14:02,080 --> 00:14:04,640 Speaker 11: How do we kind of bring them as much value, 320 00:14:04,920 --> 00:14:07,319 Speaker 11: and this idea we can save them billions of dollars 321 00:14:07,400 --> 00:14:10,880 Speaker 11: on Prime Day is just a tremendous dialareble to offer customers. 322 00:14:10,960 --> 00:14:13,000 Speaker 2: And of course the reason they want value is because 323 00:14:13,280 --> 00:14:15,840 Speaker 2: the economy is in a much tougher position, and Amazon 324 00:14:15,880 --> 00:14:18,280 Speaker 2: itself has been having to ensure that it's focused much 325 00:14:18,320 --> 00:14:21,480 Speaker 2: more on costs, having to make tough choices, laying off people. 326 00:14:21,920 --> 00:14:24,760 Speaker 2: I'm interested as to really how optimistic you are going 327 00:14:24,800 --> 00:14:27,120 Speaker 2: past Prime Day that the consumer is there to support 328 00:14:27,160 --> 00:14:27,680 Speaker 2: your business. 329 00:14:29,080 --> 00:14:29,800 Speaker 7: I'm optimistic. 330 00:14:29,840 --> 00:14:31,360 Speaker 11: I still have a lot of optimism in the US 331 00:14:31,440 --> 00:14:32,680 Speaker 11: economy and the US consumer. 332 00:14:33,040 --> 00:14:34,560 Speaker 7: They continue to show up. I agree they are. 333 00:14:34,640 --> 00:14:36,880 Speaker 11: They're they're looking for value, and we need to make 334 00:14:36,880 --> 00:14:39,480 Speaker 11: sure we're able to kind of be best on price, 335 00:14:39,800 --> 00:14:42,560 Speaker 11: best on speed. I'm in a sub same day building, 336 00:14:42,600 --> 00:14:45,080 Speaker 11: so these items here are being able to delivered in four 337 00:14:45,160 --> 00:14:46,520 Speaker 11: or five hours. So to be able to get your 338 00:14:46,520 --> 00:14:49,760 Speaker 11: Prime Day order on the same day within four hours, 339 00:14:49,440 --> 00:14:52,800 Speaker 11: it's an amazing feed. This business itself is subday same 340 00:14:52,880 --> 00:14:55,600 Speaker 11: day business. We're over fifty percent in the first quarter, 341 00:14:56,040 --> 00:14:58,560 Speaker 11: and so it's really resonating with consumers that they're looking 342 00:14:58,600 --> 00:15:01,040 Speaker 11: for speed and convenience price. 343 00:15:01,200 --> 00:15:03,440 Speaker 2: Jean Felton, busy day. We'll let you get back to it. 344 00:15:03,440 --> 00:15:06,680 Speaker 2: Amazon the SVP for worldwide operations. We thank you for 345 00:15:06,720 --> 00:15:17,600 Speaker 2: your time. Time now for talking tech. First Up, Tata 346 00:15:17,840 --> 00:15:19,480 Speaker 2: is closing in on a deal to become the first 347 00:15:19,560 --> 00:15:21,920 Speaker 2: Indian iPhone maker, and the company is set to buy 348 00:15:21,960 --> 00:15:24,320 Speaker 2: an Apple Supplies factory as soon as August in an 349 00:15:24,320 --> 00:15:27,240 Speaker 2: effort to increase the plant's employment and expand output, according 350 00:15:27,320 --> 00:15:31,440 Speaker 2: to Bloomberg reporting. Meanwhile, Uber seeing its biggest ever executive 351 00:15:31,440 --> 00:15:34,480 Speaker 2: departure since going public. Chief financial officer Neilson Chai is 352 00:15:34,480 --> 00:15:37,320 Speaker 2: planning to leave the right hailing giant. Try informed CEO 353 00:15:37,360 --> 00:15:40,440 Speaker 2: Dora Koslshahi of his intentions to move on, though a 354 00:15:40,560 --> 00:15:42,880 Speaker 2: decision on timing hasn't yet been made. I was tapped 355 00:15:42,880 --> 00:15:45,680 Speaker 2: by Koslshahi in twenty eighteen to lead the listing. 356 00:15:46,320 --> 00:15:49,160 Speaker 6: Plus, an artificial intelligence researcher who co authored one of 357 00:15:49,160 --> 00:15:51,280 Speaker 6: Google's most influential. 358 00:15:50,640 --> 00:15:53,040 Speaker 3: Papers, is leaving the company to launch a startup. 359 00:15:53,200 --> 00:15:56,720 Speaker 2: Employee who helped write the pioneering AI paper, Attention is 360 00:15:56,760 --> 00:15:59,440 Speaker 2: All You Need confirm to Bloomberg that he will depart 361 00:15:59,560 --> 00:16:03,720 Speaker 2: Google Japan later this month. Some of the biggest names. 362 00:16:03,760 --> 00:16:06,960 Speaker 2: Meanwhile in technology, media and business, well guess where they 363 00:16:07,000 --> 00:16:10,320 Speaker 2: are the Idahoo Mountains for the Allen and Coe Sun 364 00:16:10,400 --> 00:16:13,480 Speaker 2: Valley Conference, also dubbed Look the Summer Camber Billionaires. The 365 00:16:13,520 --> 00:16:16,520 Speaker 2: annual summit features a series of big picture panels, many 366 00:16:16,560 --> 00:16:18,560 Speaker 2: of which will focus on the rise of art, traditional 367 00:16:18,600 --> 00:16:22,520 Speaker 2: intelligence of course, also the future streaming and well m 368 00:16:22,560 --> 00:16:25,440 Speaker 2: and a as it stands, a Red Ludlow, you're on site. 369 00:16:25,440 --> 00:16:27,680 Speaker 6: You're in some valley, Idaho, and boy, they're all going to. 370 00:16:27,680 --> 00:16:29,640 Speaker 2: Be talking about that sixty nine billion dollar deal. 371 00:16:29,560 --> 00:16:33,720 Speaker 12: Right, yeah, yeah, we have news. It will be front 372 00:16:33,760 --> 00:16:36,080 Speaker 12: and center. You know you were talking earlier in Bloombo 373 00:16:36,120 --> 00:16:38,640 Speaker 12: Technology of Dina Bass. Imagine if the decision had gone 374 00:16:38,680 --> 00:16:41,520 Speaker 12: the other way. But Bobby Kotik is here this week 375 00:16:41,560 --> 00:16:44,800 Speaker 12: in some valley. I understand that Sacha and Adela will 376 00:16:44,840 --> 00:16:47,720 Speaker 12: be here too, And what a blow this is to 377 00:16:47,800 --> 00:16:50,760 Speaker 12: the FTC in CMA. When I touched down last night 378 00:16:51,200 --> 00:16:54,840 Speaker 12: in between the mountains, the sun setting on the bluetiful landscape, 379 00:16:54,920 --> 00:16:57,360 Speaker 12: I was thinking about Lee Na Kahan and the FTC 380 00:16:57,960 --> 00:17:01,760 Speaker 12: because actually this year there's a real emphasis on the 381 00:17:01,840 --> 00:17:05,320 Speaker 12: history of some value, which is Telecom's technology and media 382 00:17:05,560 --> 00:17:09,360 Speaker 12: or TMT and deals, and last year there was only 383 00:17:09,400 --> 00:17:12,560 Speaker 12: one story Elon Musk's purchase of Twitter. But all the 384 00:17:12,600 --> 00:17:16,199 Speaker 12: breaking news of this morning puts the landscape for deals 385 00:17:16,200 --> 00:17:19,199 Speaker 12: in this sector front and center for the attendees. We 386 00:17:19,280 --> 00:17:20,840 Speaker 12: might see some more activity, now. 387 00:17:20,800 --> 00:17:21,399 Speaker 3: Yeah, isn't it. 388 00:17:21,400 --> 00:17:23,680 Speaker 2: It's not the only sixty nine billion dollar deal even. 389 00:17:23,720 --> 00:17:25,800 Speaker 2: I mean the fact that Brawcom looks like it might 390 00:17:25,800 --> 00:17:28,680 Speaker 2: get VMware according to the Fts, so some really big 391 00:17:28,760 --> 00:17:32,080 Speaker 2: major chip steals. And indeed, as we've seen gaming deals, 392 00:17:32,119 --> 00:17:35,280 Speaker 2: but talk to us about the world of streaming and indeed, 393 00:17:35,480 --> 00:17:39,240 Speaker 2: well content really yeah, we're potentially seeing art mimic life 394 00:17:39,280 --> 00:17:40,480 Speaker 2: a little bit with succession. 395 00:17:42,520 --> 00:17:45,560 Speaker 12: I love that arc mimicking life. You know, the streaming 396 00:17:45,680 --> 00:17:48,960 Speaker 12: story is also one of all of the names involved. 397 00:17:49,040 --> 00:17:51,040 Speaker 12: You know, the top ranks of Netflix will be here, 398 00:17:51,720 --> 00:17:55,119 Speaker 12: David'sarslove w Warner Brothers, Discovery, and I understand that in 399 00:17:55,160 --> 00:17:57,760 Speaker 12: the last couple of minutes, Bob Iger has just walked 400 00:17:57,760 --> 00:18:00,359 Speaker 12: through the front door of some valley. I think if 401 00:18:00,359 --> 00:18:02,320 Speaker 12: there's a deal that we pick out, it might be 402 00:18:02,440 --> 00:18:05,920 Speaker 12: Hulu because remember that Comcast retains a third of Hulu 403 00:18:06,200 --> 00:18:09,080 Speaker 12: with an option to enforce Disney to buy out its stake. 404 00:18:09,560 --> 00:18:12,800 Speaker 12: My understanding is that Brian Roberts Comcast isn't here this week, 405 00:18:12,920 --> 00:18:16,120 Speaker 12: but it's one that everyone's watching because the current valuations 406 00:18:16,160 --> 00:18:18,680 Speaker 12: like twenty seven billion dollars. I know that Disney don't 407 00:18:18,720 --> 00:18:20,879 Speaker 12: think it should be that much if they were to 408 00:18:20,920 --> 00:18:22,119 Speaker 12: buy out the remaining Steak. 409 00:18:22,359 --> 00:18:24,679 Speaker 7: And then Eiger, what's his future? I remember a. 410 00:18:24,720 --> 00:18:27,760 Speaker 12: Year ago when I was here, he arrived with Bob Chaypeck. 411 00:18:27,920 --> 00:18:31,120 Speaker 12: He just retired. Chapeck had taken the reins and how 412 00:18:31,119 --> 00:18:33,199 Speaker 12: long did that last? Not long at all, and it 413 00:18:33,240 --> 00:18:35,680 Speaker 12: was already awkward. Then he was already under pressure because 414 00:18:35,720 --> 00:18:38,439 Speaker 12: Disney was not having a great time this time a 415 00:18:38,480 --> 00:18:38,920 Speaker 12: year ago. 416 00:18:39,359 --> 00:18:41,680 Speaker 2: Yeah, and now we're all lying as to who he's 417 00:18:41,720 --> 00:18:45,520 Speaker 2: come with now, from those heading up the TV part 418 00:18:45,560 --> 00:18:47,359 Speaker 2: of Disney, those heading up on the. 419 00:18:47,280 --> 00:18:48,200 Speaker 3: Parks as well. 420 00:18:48,320 --> 00:18:50,720 Speaker 2: And I'm interested in not only sort of some of 421 00:18:50,760 --> 00:18:54,159 Speaker 2: the succession planning and some of the individuals, but individuals 422 00:18:54,160 --> 00:18:54,480 Speaker 2: of old. 423 00:18:54,480 --> 00:18:56,040 Speaker 3: What's so interesting you mentioned we were all. 424 00:18:55,920 --> 00:18:58,240 Speaker 2: Talking Elon Musk this time last year, and that it's. 425 00:18:58,080 --> 00:18:59,520 Speaker 3: Deal his deal for Twitter. 426 00:18:59,720 --> 00:19:02,240 Speaker 6: Yes, now we're thinking about the competition. 427 00:19:01,880 --> 00:19:02,800 Speaker 3: For Twitter. 428 00:19:05,119 --> 00:19:08,000 Speaker 12: Mark Zuckerberg Yet, will he be the man of the moment. 429 00:19:08,840 --> 00:19:11,200 Speaker 12: You know you and I have talked every day about Threads, 430 00:19:11,240 --> 00:19:14,200 Speaker 12: every milestone, one hundred million on the show twenty four 431 00:19:14,240 --> 00:19:16,960 Speaker 12: hours ago. I remember twenty twenty one, the New York 432 00:19:17,000 --> 00:19:21,359 Speaker 12: Times published that big story about how Mark Zuckerberg's relationship 433 00:19:21,400 --> 00:19:26,840 Speaker 12: Michelle Sandberg had deteriorated because of how she had handled Facebook. 434 00:19:26,880 --> 00:19:32,320 Speaker 12: Now Meta's relationship with Washington, DC, and I remember being there. 435 00:19:32,640 --> 00:19:36,080 Speaker 12: A guess who walks past smiling ear Mark Zuckerberg and 436 00:19:36,119 --> 00:19:38,560 Speaker 12: Cheryl Samdberg very different vibe. Now he could be the 437 00:19:38,640 --> 00:19:39,919 Speaker 12: main man everyone wants to talk to. 438 00:19:40,440 --> 00:19:41,280 Speaker 3: I can imagine. 439 00:19:41,320 --> 00:19:42,840 Speaker 2: And I'm sure you're going to be giving us live 440 00:19:42,920 --> 00:19:46,040 Speaker 2: updates on threads and Twitter and whatever other social medium. 441 00:19:45,800 --> 00:19:46,680 Speaker 3: Form you're going to be taking. 442 00:19:46,760 --> 00:19:55,840 Speaker 2: Ed Ludlow live in some valley, Idaho. 443 00:19:57,720 --> 00:20:00,000 Speaker 3: Welcome back to LUMO Technology. I'm Caroen Hide in New York. 444 00:20:00,080 --> 00:20:04,120 Speaker 2: Let's get onto the individual intricacies of another asset type crypto. Now, 445 00:20:04,119 --> 00:20:07,520 Speaker 2: we know that all regulators benign that particular space, particularly 446 00:20:07,720 --> 00:20:10,320 Speaker 2: here in the United States, and well look at the 447 00:20:10,359 --> 00:20:13,480 Speaker 2: SEC in particular, It's power over crypto just seems to 448 00:20:13,520 --> 00:20:17,600 Speaker 2: be growing. SEC Chair Gary Gensler filling the crypto regulatory 449 00:20:17,720 --> 00:20:19,600 Speaker 2: void at the moment, I want to dig into that, 450 00:20:19,680 --> 00:20:21,600 Speaker 2: and some of the push from big institutions still want 451 00:20:21,600 --> 00:20:23,640 Speaker 2: to get in on the space. Avalad's president John Woo 452 00:20:23,760 --> 00:20:25,240 Speaker 2: joins us and place to say along with our very 453 00:20:25,280 --> 00:20:29,960 Speaker 2: own Chinnali Basek crypto expert in residence, and let's start 454 00:20:30,160 --> 00:20:32,160 Speaker 2: the journal a little bit as to how the mood 455 00:20:32,240 --> 00:20:35,359 Speaker 2: feels right now, because last time we've come on, you know, 456 00:20:35,480 --> 00:20:39,840 Speaker 2: peak bank crisis, peak worries and trials and tribulations to crypto, 457 00:20:40,480 --> 00:20:42,480 Speaker 2: we can seem to be in a holding pattern right now. 458 00:20:43,119 --> 00:20:46,720 Speaker 13: Well, I think the mood for practitioners like ourselves who 459 00:20:46,720 --> 00:20:50,040 Speaker 13: are operating the space is obviously better ever since, ever 460 00:20:50,080 --> 00:20:53,239 Speaker 13: since Frankly, Larry Fink, black Rock, Fidelity and all these 461 00:20:53,240 --> 00:20:56,760 Speaker 13: big players aside to refile for their ETF. It's a 462 00:20:56,760 --> 00:20:59,200 Speaker 13: big short of confidence that not only do they think 463 00:20:59,520 --> 00:21:02,040 Speaker 13: they're in individual users, we're talking about nine trillion of 464 00:21:02,080 --> 00:21:06,160 Speaker 13: assets at black Rock, five trillion of fidelities are interested 465 00:21:06,200 --> 00:21:08,760 Speaker 13: in the space. But I have a deep succission that 466 00:21:09,119 --> 00:21:12,159 Speaker 13: Larry Fink realizes now based on its comments, that there 467 00:21:12,240 --> 00:21:15,720 Speaker 13: is real use case and it's useful to tokenize financial 468 00:21:15,760 --> 00:21:17,639 Speaker 13: assets to streamline operations. 469 00:21:17,640 --> 00:21:19,879 Speaker 3: He was so skeptical. He was so skeptical. 470 00:21:20,119 --> 00:21:22,560 Speaker 13: We just quotes from seventeen eighteen versus twenty two to 471 00:21:22,560 --> 00:21:25,679 Speaker 13: twenty three complete about face, and that's what makes me 472 00:21:25,800 --> 00:21:28,160 Speaker 13: very excited. We need new leaders into the space. 473 00:21:28,200 --> 00:21:29,959 Speaker 14: But if you have a crypto industry that was supposed 474 00:21:29,960 --> 00:21:31,720 Speaker 14: to be separate from Wall Street, and you have a 475 00:21:31,720 --> 00:21:36,000 Speaker 14: Wall Street giant stepping into the crypto industry, why embrace it? 476 00:21:36,040 --> 00:21:38,040 Speaker 14: If you're kind of a crypto native here, if you 477 00:21:38,119 --> 00:21:40,760 Speaker 14: believe that there should be another system, then what is 478 00:21:40,800 --> 00:21:42,040 Speaker 14: the point of Blackrock getting in. 479 00:21:42,359 --> 00:21:44,480 Speaker 13: I think there will be two worlds. There will be 480 00:21:44,680 --> 00:21:50,480 Speaker 13: the white glove service that a black Rock provides low fees, custody, etc. Etc. 481 00:21:51,040 --> 00:21:54,399 Speaker 13: And then there are the deeper intricacies where only a 482 00:21:54,480 --> 00:21:58,240 Speaker 13: native crypto firm like Ava Labs really really understands all 483 00:21:58,240 --> 00:22:00,600 Speaker 13: the stuff that Larry Fink is talking about. Of the 484 00:22:00,680 --> 00:22:03,440 Speaker 13: Labs already provides in what we call a subnetwork, which 485 00:22:03,480 --> 00:22:06,320 Speaker 13: is a blockchain that's a service with a software development 486 00:22:06,359 --> 00:22:09,520 Speaker 13: kit that has all the features for compliance and use cases. 487 00:22:09,560 --> 00:22:12,879 Speaker 13: In fact, we've already partnered with Wisdom Tree, with Wellington 488 00:22:13,000 --> 00:22:16,480 Speaker 13: and t Road doing similar things. So I'm excited because 489 00:22:16,480 --> 00:22:18,040 Speaker 13: it lends more credibility to space. 490 00:22:18,119 --> 00:22:20,600 Speaker 14: What about Coinbase, Let's talk about it for a second, 491 00:22:20,600 --> 00:22:24,000 Speaker 14: because Blackrock chose a crypto firm, Coinbase, to deal with 492 00:22:24,000 --> 00:22:26,440 Speaker 14: its custody of bitcoin. On the same time, there's a 493 00:22:26,480 --> 00:22:28,879 Speaker 14: lot of questions about feed compression when it comes to 494 00:22:28,880 --> 00:22:31,400 Speaker 14: the bitcoin space. How do you kind of net out 495 00:22:31,400 --> 00:22:34,800 Speaker 14: the effect here for a firm like Coinbase as more 496 00:22:34,840 --> 00:22:35,760 Speaker 14: ETF get in. 497 00:22:36,080 --> 00:22:38,760 Speaker 13: Yeah, absolutely, there's definitely going to be feed compression on 498 00:22:38,800 --> 00:22:42,040 Speaker 13: the retail side. On the institutional side, Coinbase is making 499 00:22:42,119 --> 00:22:45,440 Speaker 13: huge strides. In fact, I think five of the all 500 00:22:45,480 --> 00:22:50,200 Speaker 13: five of the top ETF filers, Blackrock as well as 501 00:22:50,840 --> 00:22:56,160 Speaker 13: CBOE are using Coinbase as a surveillance partner. Now, if 502 00:22:56,200 --> 00:23:01,600 Speaker 13: these mega traditional financial institutions trust coinbas maybe the agencies 503 00:23:01,640 --> 00:23:04,720 Speaker 13: will have to also reevaluate if they trust them as well. 504 00:23:05,440 --> 00:23:08,040 Speaker 2: Chanani, I mean, with your expertise, the way you're following 505 00:23:08,080 --> 00:23:11,040 Speaker 2: it at the moment, What about the regulatory overhang, because 506 00:23:11,080 --> 00:23:13,080 Speaker 2: that's what we've been talking about for the first few months, 507 00:23:13,119 --> 00:23:16,480 Speaker 2: and then now with black rol come with these big institutions, 508 00:23:16,800 --> 00:23:19,120 Speaker 2: what about SEC what about CFTC. 509 00:23:19,280 --> 00:23:20,680 Speaker 14: Yeah, I mean I think that there's been this big 510 00:23:20,720 --> 00:23:23,200 Speaker 14: expectation that the SEC will come in and just approve 511 00:23:23,520 --> 00:23:26,800 Speaker 14: these ETFs, but we've seen many years go by without 512 00:23:26,840 --> 00:23:29,600 Speaker 14: that happening. At the same time here, I mean, I'm wondering, 513 00:23:29,920 --> 00:23:32,960 Speaker 14: you know, how hesitant are Wall Street firms to get in. 514 00:23:33,000 --> 00:23:34,800 Speaker 14: And the issue we've been talking about on the sidelines 515 00:23:34,840 --> 00:23:38,119 Speaker 14: here is not just the ETF world, but also just 516 00:23:38,119 --> 00:23:41,680 Speaker 14: the plan old liquidity you're seeing in boring all bitcoin markets. 517 00:23:41,680 --> 00:23:43,639 Speaker 14: We have gone nowhere, guys. 518 00:23:43,280 --> 00:23:44,119 Speaker 3: For three weeks. 519 00:23:44,200 --> 00:23:47,119 Speaker 14: It's been up against thirty thousand who's trading. 520 00:23:47,280 --> 00:23:49,160 Speaker 13: That's a great point. If you look at the volumes, 521 00:23:49,160 --> 00:23:52,879 Speaker 13: whether be on coinbase or the overall averages in the indites, 522 00:23:53,280 --> 00:23:56,040 Speaker 13: volume is still coming down even though prices are going up. 523 00:23:56,240 --> 00:23:58,240 Speaker 13: And that's what I've been talking about for a long time. 524 00:23:58,280 --> 00:24:01,040 Speaker 13: The market structure is still kind of broken. All the 525 00:24:01,160 --> 00:24:05,240 Speaker 13: leverage players in the past, whether that be Celsius, Block five, Genesis, 526 00:24:05,359 --> 00:24:07,840 Speaker 13: they're not in there to provide leverage so people can 527 00:24:07,880 --> 00:24:11,479 Speaker 13: trade more. It's the same people trading creating price movement, 528 00:24:11,720 --> 00:24:14,080 Speaker 13: but the volumes are still down and going down. 529 00:24:14,200 --> 00:24:17,000 Speaker 2: It is a lack of leverage ultimately a better, more 530 00:24:17,040 --> 00:24:20,120 Speaker 2: healthy thing. And to that point, does that then move 531 00:24:20,200 --> 00:24:22,360 Speaker 2: us outside of the world of just talking about bitcoin 532 00:24:22,600 --> 00:24:26,000 Speaker 2: into well some of the old coins and your own ecosystem. 533 00:24:25,720 --> 00:24:28,879 Speaker 13: And yes and no, leverage has been part of every 534 00:24:28,920 --> 00:24:33,119 Speaker 13: financial ecosystem, whether it's mortgaging for a house or whether 535 00:24:33,320 --> 00:24:36,840 Speaker 13: it is in other financial markets. In fact, if you 536 00:24:36,880 --> 00:24:39,639 Speaker 13: don't have leverage, you don't have velocity of money and 537 00:24:39,720 --> 00:24:43,600 Speaker 13: you don't have growth. So leverage is healthy. Maintaining and 538 00:24:43,680 --> 00:24:46,840 Speaker 13: maintaining healthy leverage is important for any ecosystem. 539 00:24:46,920 --> 00:24:49,440 Speaker 2: And John, give us a sense of like globally where 540 00:24:49,440 --> 00:24:51,760 Speaker 2: we sit right now, because the talk on this show 541 00:24:51,760 --> 00:24:54,040 Speaker 2: has been a lot about well, we're losing our talent 542 00:24:54,080 --> 00:24:54,600 Speaker 2: from the US. 543 00:24:54,640 --> 00:24:55,440 Speaker 3: They're all going to. 544 00:24:55,359 --> 00:24:57,800 Speaker 2: The Middle East for interesting news out of bid Oasis 545 00:24:58,040 --> 00:25:00,840 Speaker 2: and the regulatory oversight there today. But people are looking 546 00:25:00,960 --> 00:25:05,000 Speaker 2: at other places to build the companies, their startups. 547 00:25:05,280 --> 00:25:05,840 Speaker 3: But where are. 548 00:25:05,840 --> 00:25:07,800 Speaker 2: Volumes coming from internationally, because it all needs to be 549 00:25:07,840 --> 00:25:09,000 Speaker 2: based on China rely. 550 00:25:08,920 --> 00:25:11,520 Speaker 13: Great question. I mean from my seed as an operator, 551 00:25:11,640 --> 00:25:15,120 Speaker 13: I see far more business development activity in Asia as 552 00:25:15,160 --> 00:25:18,080 Speaker 13: well as in Europe. Although the US financial services firm 553 00:25:18,080 --> 00:25:20,200 Speaker 13: have taken a step back waiting for the compliance and 554 00:25:20,280 --> 00:25:23,320 Speaker 13: regulation to play out, the amount of deals we're working 555 00:25:23,359 --> 00:25:26,199 Speaker 13: on at ov labs in Asia as well as in 556 00:25:26,280 --> 00:25:30,320 Speaker 13: Europe have only increased, so they see the usefulness of 557 00:25:30,359 --> 00:25:34,920 Speaker 13: the blockchain technology and they're engaged us. Hopefully with these 558 00:25:34,960 --> 00:25:36,960 Speaker 13: new leaders will start that process as well. 559 00:25:37,040 --> 00:25:39,760 Speaker 14: You know, it's interesting to see this international engagement, but 560 00:25:39,800 --> 00:25:42,240 Speaker 14: at the same time, wouldn't you still see bitcoin prices 561 00:25:42,320 --> 00:25:46,640 Speaker 14: move higher if there was that much more engagement at 562 00:25:46,640 --> 00:25:48,879 Speaker 14: this point? Do you see more risks to the upside 563 00:25:48,920 --> 00:25:50,640 Speaker 14: or the downside when it comes to bitcoin? 564 00:25:50,680 --> 00:25:52,840 Speaker 13: No one could predict the short short term. It's a 565 00:25:53,000 --> 00:25:56,439 Speaker 13: forty forty five percent volve products, so who knows. But 566 00:25:56,960 --> 00:26:00,000 Speaker 13: I see in the medium and long term upsides where 567 00:26:00,119 --> 00:26:03,920 Speaker 13: you want to be the haviening coming next year. Historically 568 00:26:03,960 --> 00:26:07,080 Speaker 13: that means it goes higher into it. And also if 569 00:26:07,119 --> 00:26:09,879 Speaker 13: you look at the curves in the financial markets for 570 00:26:09,920 --> 00:26:13,679 Speaker 13: the futures contracts for bitcoin, no one's giving it price appreciation. 571 00:26:14,200 --> 00:26:16,440 Speaker 13: So I think you can look at the options market, 572 00:26:16,440 --> 00:26:19,479 Speaker 13: a twenty five delta call on bitcoin is priced almost 573 00:26:19,480 --> 00:26:21,920 Speaker 13: the same as for three months. It's almost the same 574 00:26:21,960 --> 00:26:24,600 Speaker 13: as a twenty five delta call six months out on bitcoin. 575 00:26:24,800 --> 00:26:27,160 Speaker 13: And for a forty five to fifty voll product, that's 576 00:26:27,280 --> 00:26:29,760 Speaker 13: really not much canentangle. It's kind of weird, so no 577 00:26:29,760 --> 00:26:32,600 Speaker 13: one's giving you credit, and usually you take the opposite 578 00:26:32,640 --> 00:26:34,480 Speaker 13: side of where people are standing. 579 00:26:34,600 --> 00:26:38,159 Speaker 2: Oh, John, technical analysis music to our ears to a 580 00:26:38,680 --> 00:26:43,040 Speaker 2: little bit about being anything other than basically speculative asset 581 00:26:43,080 --> 00:26:45,080 Speaker 2: class Like even in the world of NFTs, we have 582 00:26:45,200 --> 00:26:48,680 Speaker 2: still seen underlying work being done there, interesting moves with mischief, 583 00:26:48,800 --> 00:26:50,760 Speaker 2: interesting moves with Movieton, interesting. 584 00:26:50,480 --> 00:26:51,600 Speaker 3: Moves with collectibles. 585 00:26:51,600 --> 00:26:54,880 Speaker 2: But the price points aren't shifting particularly, and I'm interested 586 00:26:54,920 --> 00:26:58,200 Speaker 2: in ultimately whether people see this as anything other at 587 00:26:58,200 --> 00:27:00,160 Speaker 2: the moment than a spective aske clas. 588 00:27:00,440 --> 00:27:03,640 Speaker 13: We see it differently. The work we're doing with NFTs, 589 00:27:03,720 --> 00:27:06,520 Speaker 13: we're working with like sk which is a large conglomerate 590 00:27:06,640 --> 00:27:09,640 Speaker 13: in Korea. They have probably one of the largest loyalty 591 00:27:09,680 --> 00:27:11,720 Speaker 13: programs in the world. Twenty four to twenty five million 592 00:27:11,800 --> 00:27:15,760 Speaker 13: South Koreans are in this ninety thousand unique merchants. So 593 00:27:15,800 --> 00:27:19,320 Speaker 13: basically they're going to put that loyalty program on a blockchain. 594 00:27:19,560 --> 00:27:21,439 Speaker 13: When you have that many participants and you need to 595 00:27:21,480 --> 00:27:24,080 Speaker 13: move information of value at the same time, you want 596 00:27:24,080 --> 00:27:27,040 Speaker 13: to do it on a blockchain. That's how we're exploring 597 00:27:27,040 --> 00:27:30,239 Speaker 13: with NFTs to loyalty programs. There are other companies even 598 00:27:30,240 --> 00:27:33,679 Speaker 13: in the US work brand companies working with NFTs to 599 00:27:33,800 --> 00:27:37,280 Speaker 13: create more engagement. There's a use case for NFTs not 600 00:27:37,400 --> 00:27:40,399 Speaker 13: just pure digital collectibles. 601 00:27:40,400 --> 00:27:42,480 Speaker 2: Great to have some time and you always have a 602 00:27:42,520 --> 00:27:45,200 Speaker 2: labs president John will Blue Emotion Alibas and the house, 603 00:27:45,240 --> 00:27:47,160 Speaker 2: so pleased to have it with me as well. And look, 604 00:27:47,280 --> 00:27:49,320 Speaker 2: it's a crypto kind of a day stick with Bloomberg Crypto. 605 00:27:49,359 --> 00:27:52,960 Speaker 2: It's at one pm Eastern at ten am Pacific coming up. 606 00:27:53,359 --> 00:27:55,159 Speaker 2: Oh guess what the other flavor of the month, of 607 00:27:55,160 --> 00:27:57,119 Speaker 2: course is and the year State of AI. We're going 608 00:27:57,160 --> 00:27:59,520 Speaker 2: to talk about that as well as cybersecurity. Venture Investing. 609 00:28:00,040 --> 00:28:01,280 Speaker 3: K Solm is going to be the best partner of 610 00:28:01,320 --> 00:28:04,400 Speaker 3: Bank Capital Ventures. That's next. This is Bloomberg. 611 00:28:13,119 --> 00:28:15,800 Speaker 2: Now, it's today's VC Spotlight, and we're very pleased to 612 00:28:15,800 --> 00:28:18,600 Speaker 2: welcome to the show Bane Capital Ventures partner Enrique Solam, 613 00:28:18,800 --> 00:28:22,560 Speaker 2: who focuses on well all stages in investing, particularly in infrastructure, 614 00:28:22,600 --> 00:28:25,800 Speaker 2: software and cybersecurity over at Bain. And let's also bring 615 00:28:25,840 --> 00:28:28,720 Speaker 2: in Bloomberg Investing reporter Hemma Palmer, who's helped bring about 616 00:28:28,720 --> 00:28:32,080 Speaker 2: this interview and we really appreciate it so Enrique Bank Capital. 617 00:28:32,080 --> 00:28:32,800 Speaker 3: You've been there, what. 618 00:28:32,760 --> 00:28:35,680 Speaker 2: Since twenty fourteen, you were leading Samantech, which eventually of 619 00:28:35,760 --> 00:28:38,160 Speaker 2: course support by Broadcom and has changed its name. But 620 00:28:38,280 --> 00:28:41,080 Speaker 2: as a leader and now as an investor, how much 621 00:28:41,120 --> 00:28:45,280 Speaker 2: has the game sort of been reorientated towards artificial intelligence 622 00:28:45,280 --> 00:28:46,160 Speaker 2: for twenty twenty three. 623 00:28:47,640 --> 00:28:50,600 Speaker 15: Yeah, if you look at the opportunities right now, we're 624 00:28:50,640 --> 00:28:55,440 Speaker 15: definitely seeing that generative AI specifically, which is really the 625 00:28:55,520 --> 00:28:58,080 Speaker 15: thing that is driving a lot of meaningful change if 626 00:28:58,120 --> 00:29:00,880 Speaker 15: you take a look at what it's going to disrupt. 627 00:29:01,400 --> 00:29:05,320 Speaker 15: Think about how software is being written today. Software developers 628 00:29:05,680 --> 00:29:08,000 Speaker 15: have to sit down and write each line of code. 629 00:29:08,280 --> 00:29:11,520 Speaker 15: In the future and near term, we expect that probably 630 00:29:11,960 --> 00:29:14,680 Speaker 15: you know, forty percent of what a developer has done 631 00:29:14,720 --> 00:29:17,680 Speaker 15: can be handled through AI. And we think that's not 632 00:29:17,760 --> 00:29:20,040 Speaker 15: a fad, that is a meaningful change. And that's just 633 00:29:20,120 --> 00:29:22,360 Speaker 15: one example of what we think is going to be 634 00:29:22,440 --> 00:29:26,240 Speaker 15: really meaningful as we take advantage of this new major trend. 635 00:29:27,320 --> 00:29:30,040 Speaker 16: And speaking about you know, disruption and AI, talk to 636 00:29:30,120 --> 00:29:32,840 Speaker 16: us a bit about what you think the disruption could 637 00:29:32,880 --> 00:29:35,480 Speaker 16: mean when it comes to phishing and hacking in cybersecurity, 638 00:29:35,560 --> 00:29:38,640 Speaker 16: What influence does what we're seeing in AI now mean 639 00:29:38,680 --> 00:29:39,440 Speaker 16: for that universe. 640 00:29:41,360 --> 00:29:44,400 Speaker 15: Well, the thing that has going on is using new 641 00:29:44,480 --> 00:29:47,760 Speaker 15: gender AI technologies, what an attacker can do is be 642 00:29:47,880 --> 00:29:50,920 Speaker 15: significantly more targeted. So what does that mean? They can 643 00:29:51,080 --> 00:29:55,360 Speaker 15: quickly generate an email message, a phishing attack that will 644 00:29:55,360 --> 00:29:57,960 Speaker 15: be very specific to you to what you do. Things 645 00:29:58,000 --> 00:30:00,440 Speaker 15: they know about you that before they wudn't have been 646 00:30:00,480 --> 00:30:01,800 Speaker 15: able to do as effectively. 647 00:30:01,880 --> 00:30:02,760 Speaker 7: And so what does that mean. 648 00:30:03,240 --> 00:30:06,480 Speaker 15: That means it's more likely that somebody we will respond 649 00:30:06,760 --> 00:30:10,360 Speaker 15: and if they respond, now the attacker is inside the network, 650 00:30:10,600 --> 00:30:13,480 Speaker 15: and so we just think that the sophistication from the 651 00:30:13,520 --> 00:30:16,160 Speaker 15: attacker's perspective will significantly increase. 652 00:30:17,320 --> 00:30:20,360 Speaker 16: And you spoke about the opportunity set with AI. How 653 00:30:20,480 --> 00:30:21,960 Speaker 16: do you look at the risks. 654 00:30:21,600 --> 00:30:22,240 Speaker 3: You just mentioned? 655 00:30:22,240 --> 00:30:26,200 Speaker 16: One, are there certain areas of AI and venture or 656 00:30:26,240 --> 00:30:28,680 Speaker 16: later stage investing that you're avoiding given some of the 657 00:30:28,680 --> 00:30:30,040 Speaker 16: concerns that we're seeing right now. 658 00:30:31,520 --> 00:30:34,200 Speaker 15: Well, you know, when you look at the total landscape, 659 00:30:34,440 --> 00:30:37,000 Speaker 15: there's always things that you want to be careful and 660 00:30:37,640 --> 00:30:39,720 Speaker 15: you know, one of the areas that a lot of 661 00:30:39,800 --> 00:30:42,240 Speaker 15: us have thought about, and you just had a discussion 662 00:30:42,280 --> 00:30:46,440 Speaker 15: on what's happening with what we'll call centralized finance We're 663 00:30:46,480 --> 00:30:51,240 Speaker 15: big believers in decentralized finance and we think that that 664 00:30:51,680 --> 00:30:55,120 Speaker 15: is going to be a big opportunity going forward. But 665 00:30:55,160 --> 00:30:58,120 Speaker 15: I would say broadly, we're bullish on what's happening AI. 666 00:30:58,200 --> 00:31:00,160 Speaker 15: We're bullish on what's happening in. 667 00:31:00,560 --> 00:31:03,040 Speaker 3: Cyber decentralized finance. 668 00:31:03,360 --> 00:31:05,400 Speaker 2: What airs, I mean, you're still running checks when it's 669 00:31:05,400 --> 00:31:06,200 Speaker 2: related to crypto. 670 00:31:07,360 --> 00:31:11,440 Speaker 15: Yeah, So we raised a fund last year, and so 671 00:31:11,480 --> 00:31:14,560 Speaker 15: we continue to invest in the companies that are working 672 00:31:14,640 --> 00:31:18,280 Speaker 15: on new blockchain technologies. And so we've got investments in 673 00:31:18,280 --> 00:31:23,120 Speaker 15: companies like Scroll Celestia, and we think there's still real 674 00:31:23,160 --> 00:31:27,760 Speaker 15: opportunity ahead. You know, the question really is there's cycles, 675 00:31:28,040 --> 00:31:31,600 Speaker 15: and we saw some of the you know, excesses of 676 00:31:32,360 --> 00:31:35,320 Speaker 15: twenty one. We think we're in a much healthier environment now, 677 00:31:35,640 --> 00:31:37,560 Speaker 15: this is more normal, and we even. 678 00:31:37,520 --> 00:31:40,440 Speaker 2: The AI startups even for valuations there. 679 00:31:41,960 --> 00:31:44,920 Speaker 15: You know, I think you're seeing that the best founders 680 00:31:45,200 --> 00:31:48,560 Speaker 15: have moved into what's happening in the generat AI space, 681 00:31:48,600 --> 00:31:51,320 Speaker 15: and so what that begins to do is they can 682 00:31:51,320 --> 00:31:58,240 Speaker 15: command premium valuations. And so definitely we're seeing some overheated prices, 683 00:31:58,600 --> 00:32:01,760 Speaker 15: but we think that's driven by what the opportunity set 684 00:32:01,800 --> 00:32:04,320 Speaker 15: is which we think is incredible. You know, we've made 685 00:32:04,320 --> 00:32:08,000 Speaker 15: an investment, for example, in a company called Unstructured, and 686 00:32:08,040 --> 00:32:09,960 Speaker 15: if you think about what they do is they're taking 687 00:32:10,000 --> 00:32:12,520 Speaker 15: all your corporate data and allowing you to train a 688 00:32:12,560 --> 00:32:15,120 Speaker 15: model on your own specific data. And so we think 689 00:32:15,320 --> 00:32:20,080 Speaker 15: companies like Unstructured, companies like Contextual, which are solving real 690 00:32:20,160 --> 00:32:23,520 Speaker 15: problems around hallucination because one of the problems with gener 691 00:32:23,520 --> 00:32:26,760 Speaker 15: of AI that I think we've all experienced is that 692 00:32:26,920 --> 00:32:30,000 Speaker 15: sometimes you'll ask a question or you'll ask for some 693 00:32:30,080 --> 00:32:33,400 Speaker 15: information and it'll give you some amount of randomness. And 694 00:32:33,440 --> 00:32:36,520 Speaker 15: what companies like Contextual that we've invested in are really 695 00:32:36,520 --> 00:32:38,760 Speaker 15: trying to do is eliminate that hallucination. 696 00:32:39,680 --> 00:32:42,520 Speaker 16: Speaking about valuations, how do you see the runway ahead 697 00:32:42,520 --> 00:32:44,960 Speaker 16: when it comes to the number of downrounds that we 698 00:32:45,040 --> 00:32:47,880 Speaker 16: might see over the next twelve months, whether an AI 699 00:32:48,000 --> 00:32:49,440 Speaker 16: even more broadly looking at. 700 00:32:49,240 --> 00:32:54,760 Speaker 15: Infrastructure, Yeah, so if you look at the current environment, 701 00:32:55,200 --> 00:32:57,560 Speaker 15: you know, twenty twenty three is probably not an ideal 702 00:32:57,600 --> 00:33:00,800 Speaker 15: time to fundraise. Most of the founders that we engage 703 00:33:00,840 --> 00:33:03,760 Speaker 15: with are really focused on thinking about raising in twenty 704 00:33:03,800 --> 00:33:06,960 Speaker 15: twenty four and twenty twenty five, where we expect that 705 00:33:07,000 --> 00:33:10,600 Speaker 15: their revenues will have grown in to the valuations, but 706 00:33:11,000 --> 00:33:14,240 Speaker 15: there will probably be some companies that will be in 707 00:33:14,280 --> 00:33:19,200 Speaker 15: a position where they have to raise financing at a 708 00:33:19,200 --> 00:33:20,520 Speaker 15: lower valuation than last time. 709 00:33:21,120 --> 00:33:23,800 Speaker 2: Always a bit of pill, but a reality for many. 710 00:33:23,840 --> 00:33:26,320 Speaker 2: Ban Capital Ventures partner and Rique Salem, great to have 711 00:33:26,360 --> 00:33:29,240 Speaker 2: some time with you. Thank you so much, Bloomberg's HMMA Palmer, 712 00:33:29,360 --> 00:33:38,960 Speaker 2: We thank you so much for bringing the conversation. We've 713 00:33:38,960 --> 00:33:41,160 Speaker 2: got to get back to our top story. Microsoft's court 714 00:33:41,200 --> 00:33:44,200 Speaker 2: win in the US to of course proceed without sixty 715 00:33:44,280 --> 00:33:46,600 Speaker 2: nine billion dollar deal for Activision Blizzard. 716 00:33:46,760 --> 00:33:49,719 Speaker 3: Let's get the FTC perspective. William Kavass with us. 717 00:33:49,720 --> 00:33:52,000 Speaker 2: He is a former acting chair of the Federal Trade Commission, 718 00:33:52,080 --> 00:33:54,320 Speaker 2: former member of the FDC, and currently professor of law 719 00:33:54,520 --> 00:33:57,320 Speaker 2: at George Washington University. Professor is wonderful to have some 720 00:33:57,360 --> 00:34:01,080 Speaker 2: time with you. What does this mean for the FTC. 721 00:34:01,240 --> 00:34:04,760 Speaker 2: They are taking big swings, but they seem to be missing. 722 00:34:06,080 --> 00:34:08,759 Speaker 17: When they've taken swings based on theories that are a 723 00:34:08,760 --> 00:34:14,399 Speaker 17: bit edgy, that involved using theories about vertical acquisitions such 724 00:34:14,440 --> 00:34:18,080 Speaker 17: as Microsoft Activision. They're having a hard time in court. 725 00:34:18,840 --> 00:34:21,680 Speaker 17: In short, they're having a difficult time expanding the frontier 726 00:34:21,719 --> 00:34:25,120 Speaker 17: of enforcement to include theories that have been deemphasized in 727 00:34:25,160 --> 00:34:27,680 Speaker 17: the past. And this is going to give the tech 728 00:34:27,680 --> 00:34:31,960 Speaker 17: community confidence with certain types of transactions, especially if they're 729 00:34:32,000 --> 00:34:35,799 Speaker 17: willing to offer concessions which the parties did hear that 730 00:34:35,840 --> 00:34:37,920 Speaker 17: they have a fighting chance of prevailing when they get 731 00:34:37,920 --> 00:34:38,320 Speaker 17: to court. 732 00:34:38,600 --> 00:34:40,839 Speaker 2: And to that end, I mean, should the FDC sort 733 00:34:40,880 --> 00:34:44,080 Speaker 2: of in a way be a little bit buoyed by 734 00:34:44,080 --> 00:34:46,160 Speaker 2: the fact that they fall such changes, or indeed the 735 00:34:46,200 --> 00:34:48,200 Speaker 2: worldwide competition authorities out there. 736 00:34:49,000 --> 00:34:51,000 Speaker 17: If I were the FTC, I'd be claiming credit for 737 00:34:51,040 --> 00:34:53,760 Speaker 17: the changes. I would say that if I hadn't been watching, 738 00:34:53,840 --> 00:34:56,680 Speaker 17: if I hadn't intervened, the concessions would not have been 739 00:34:56,680 --> 00:35:00,200 Speaker 17: given so directly and clearly. The judge in the case, 740 00:35:00,200 --> 00:35:03,040 Speaker 17: in our opinion today emphasize the clarity with which the 741 00:35:03,040 --> 00:35:05,880 Speaker 17: commitments have been made, so I certainly do claim some 742 00:35:05,960 --> 00:35:09,440 Speaker 17: credit for that. Without my intervention, those would not have 743 00:35:09,520 --> 00:35:12,160 Speaker 17: been presented so clearly and so directly. 744 00:35:12,400 --> 00:35:15,400 Speaker 2: What's so interesting is almost sort of five minutes apart 745 00:35:15,440 --> 00:35:17,759 Speaker 2: of the headline that we understood that the US cord 746 00:35:17,800 --> 00:35:20,359 Speaker 2: is sort of giving this blessing to Microsoft, we heard 747 00:35:20,360 --> 00:35:22,960 Speaker 2: that the EU it's reporting from the Financial Times, But 748 00:35:23,000 --> 00:35:26,200 Speaker 2: the EU might well allow the VMware Broadcom deal to 749 00:35:26,239 --> 00:35:27,960 Speaker 2: go through. What about some of the these are the 750 00:35:28,000 --> 00:35:30,239 Speaker 2: deals coming down the pike. It feels as though you 751 00:35:30,320 --> 00:35:32,640 Speaker 2: think these could start to get through if they. 752 00:35:32,480 --> 00:35:33,520 Speaker 3: Make these concessions. 753 00:35:33,560 --> 00:35:36,560 Speaker 2: I'm thinking of Broadcon, VMware, Kroger Albertson's and the like. 754 00:35:37,640 --> 00:35:42,520 Speaker 17: If parties think very clearly and honestly at the beginning 755 00:35:42,520 --> 00:35:45,959 Speaker 17: of the process about what the vulnerabilities will be, where 756 00:35:46,040 --> 00:35:49,799 Speaker 17: the regulators are most likely to intervene and proceed to 757 00:35:49,800 --> 00:35:53,040 Speaker 17: come up with solutions to address those, their prospects of 758 00:35:53,120 --> 00:35:58,920 Speaker 17: success improved dramatically. The European Union, the European Competition Directorate 759 00:35:59,160 --> 00:36:03,520 Speaker 17: has been quite willing to accept concessions. The courts in 760 00:36:03,560 --> 00:36:07,600 Speaker 17: these US cases are willing to look at the suggested fix. 761 00:36:08,000 --> 00:36:12,600 Speaker 17: This is the case in today in Microsoft activision. It 762 00:36:12,719 --> 00:36:15,640 Speaker 17: was the case for the Administrative Law judge and Aluminu Grail. 763 00:36:16,280 --> 00:36:18,880 Speaker 17: It's been the case in a couple of the couple 764 00:36:18,880 --> 00:36:21,360 Speaker 17: of the challenges that the Department of Justice has brought. 765 00:36:21,760 --> 00:36:26,160 Speaker 17: In short, what parties are having success with is coming 766 00:36:26,200 --> 00:36:29,279 Speaker 17: to the court and saying we concede that there might 767 00:36:29,280 --> 00:36:32,799 Speaker 17: be competitive problems, but we have a solution, and just 768 00:36:32,880 --> 00:36:36,360 Speaker 17: because the authorities are not willing to embrace them doesn't 769 00:36:36,360 --> 00:36:40,360 Speaker 17: mean that you judge should not endorse them. That strategy 770 00:36:40,480 --> 00:36:41,320 Speaker 17: has been effected. 771 00:36:42,680 --> 00:36:46,399 Speaker 2: What then, When Lena Khan first came in, much was made, 772 00:36:46,440 --> 00:36:49,960 Speaker 2: of course, of the work she'd done and the study 773 00:36:50,000 --> 00:36:52,960 Speaker 2: of the law around Amazon in particular. Many are waiting 774 00:36:53,200 --> 00:36:55,480 Speaker 2: for what the FTC is going to do and bring 775 00:36:56,000 --> 00:36:58,520 Speaker 2: in in terms of the big one for Amazon, in 776 00:36:58,560 --> 00:37:02,800 Speaker 2: some way, shape or form, does any of this perhaps 777 00:37:03,040 --> 00:37:05,560 Speaker 2: arbiter an easier time for the big company, which of 778 00:37:05,600 --> 00:37:08,240 Speaker 2: course we understand has been hiring a lot of XFTC people. 779 00:37:09,640 --> 00:37:12,880 Speaker 17: I think the company is almost certain to be the 780 00:37:12,880 --> 00:37:16,439 Speaker 17: subject of a complaint. The FTC has made so many 781 00:37:16,480 --> 00:37:19,600 Speaker 17: commitments over the past couple of years that to not 782 00:37:19,920 --> 00:37:23,640 Speaker 17: bring a monopolization case against Amazon would be seen as 783 00:37:23,680 --> 00:37:28,040 Speaker 17: a fairly dramatic repeat retreat, and indeed, for the chair 784 00:37:28,920 --> 00:37:31,040 Speaker 17: this has been held out as one of the main 785 00:37:31,080 --> 00:37:34,399 Speaker 17: reasons she's at the agency. I think it does mean 786 00:37:34,600 --> 00:37:37,719 Speaker 17: that the FTC is going to think perhaps a bit 787 00:37:37,760 --> 00:37:41,120 Speaker 17: harder about how it assembles the proof that will make 788 00:37:41,200 --> 00:37:45,200 Speaker 17: the case successful, because in these merger defeats what the 789 00:37:45,239 --> 00:37:47,560 Speaker 17: courts have been saying is your evidence isn't good enough. 790 00:37:48,320 --> 00:37:50,480 Speaker 17: And the last thing I think it does is that 791 00:37:50,520 --> 00:37:54,600 Speaker 17: it probably gives the Amazon more confidence that when the 792 00:37:54,800 --> 00:37:57,680 Speaker 17: litigation process unfolds, that they're going to be able to 793 00:37:57,719 --> 00:38:03,359 Speaker 17: meet the challenge. Ultimately, as an enforcer, you gain credibility 794 00:38:03,400 --> 00:38:05,239 Speaker 17: by winning. You don't have to win them all, but 795 00:38:05,280 --> 00:38:09,280 Speaker 17: you have to win a critical massive cases, and in Amazon, 796 00:38:09,360 --> 00:38:11,480 Speaker 17: I think it suggests that if you're willing to mass 797 00:38:11,680 --> 00:38:14,680 Speaker 17: all the resources that you need to take on the case, 798 00:38:15,280 --> 00:38:17,960 Speaker 17: your prospects of success are going to be respectable. So 799 00:38:18,400 --> 00:38:20,960 Speaker 17: I think that these defeats in a sense give them 800 00:38:21,000 --> 00:38:23,879 Speaker 17: some confidence that they can prevail later on. 801 00:38:24,640 --> 00:38:27,040 Speaker 2: Professor, great to get your expertise on this. Thank you 802 00:38:27,080 --> 00:38:29,480 Speaker 2: so much for joining us today, George Washington University law 803 00:38:29,480 --> 00:38:32,600 Speaker 2: professor and former FDC member Bill Kommersick. 804 00:38:32,920 --> 00:38:34,439 Speaker 3: We thank him now. 805 00:38:34,520 --> 00:38:37,200 Speaker 2: That does it for this edition of Bloomberg Technology looks 806 00:38:37,239 --> 00:38:40,560 Speaker 2: so much more throughout the day regarding tech, look, Bloomberg 807 00:38:40,600 --> 00:38:43,239 Speaker 2: TV's got a great exclusive coming up three thirty pm, 808 00:38:43,280 --> 00:38:43,839 Speaker 2: New York Time. 809 00:38:44,719 --> 00:38:46,840 Speaker 3: Citron Research founder Andrew Left. 810 00:38:47,239 --> 00:38:50,160 Speaker 2: Of course, he takes big swings in terms of thinking. 811 00:38:49,840 --> 00:38:52,279 Speaker 3: That share prices are going to fall. Meanwhile, don't forget 812 00:38:52,280 --> 00:38:54,320 Speaker 3: to check out our podcast. You can find on the terminal. 813 00:38:54,360 --> 00:38:56,680 Speaker 3: You can look online on Apple, Spotify, iHeart. 814 00:38:56,880 --> 00:38:58,759 Speaker 2: You're going to be tuning into all of the great 815 00:38:58,760 --> 00:39:01,879 Speaker 2: conversations and analysis coming from our one Ed Ludlow out 816 00:39:01,880 --> 00:39:05,640 Speaker 2: there in some balley, as well as tech billionaires descend 817 00:39:06,040 --> 00:39:08,120 Speaker 2: on Idaho from New York, from Sun Valley. 818 00:39:08,239 --> 00:39:08,920 Speaker 3: This is Blomberg