1 00:00:01,720 --> 00:00:05,360 Speaker 1: From Mahard where Innovation of Money and Power Collie in 2 00:00:05,480 --> 00:00:10,640 Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde. 3 00:00:10,440 --> 00:00:27,840 Speaker 2: And Ed Ludlove a Meed Ludlow in San Francisco. Caroline 4 00:00:27,880 --> 00:00:30,760 Speaker 2: Hyde is off. This is Bloomberg Technology coming up on 5 00:00:30,800 --> 00:00:35,960 Speaker 2: the program. Facing mega fines, the European Union opens investigations 6 00:00:36,000 --> 00:00:40,040 Speaker 2: into Apple, Google and Meta in the first probes under 7 00:00:40,080 --> 00:00:43,440 Speaker 2: the Block's Digital Markets Act. We go live to Brussels 8 00:00:43,800 --> 00:00:46,720 Speaker 2: Plus will take a deep dive into the Justice Department's 9 00:00:46,800 --> 00:00:50,280 Speaker 2: lawsuit against Apple as her own. Mark German argues the 10 00:00:50,360 --> 00:00:55,000 Speaker 2: case is missing an opportunity to address more pressing concerns, 11 00:00:55,520 --> 00:00:58,520 Speaker 2: and Lucid getting a one billion dollar cash injection from 12 00:00:58,560 --> 00:01:02,000 Speaker 2: its biggest investor provide the troubled electric car maker with 13 00:01:02,040 --> 00:01:05,320 Speaker 2: a needed lifeline. Will discuss that and so much more 14 00:01:05,520 --> 00:01:07,360 Speaker 2: through the hour. Let's get right to Lucid. Look at 15 00:01:07,440 --> 00:01:10,160 Speaker 2: Lucid shared in the US session, now up eight percent 16 00:01:10,240 --> 00:01:13,160 Speaker 2: that had been as high as around twenty percent following 17 00:01:13,160 --> 00:01:17,800 Speaker 2: the market open. This is a private placement of convertible stock. 18 00:01:18,400 --> 00:01:22,440 Speaker 2: It takes the Saudi PIF and its affiliates investments and 19 00:01:22,520 --> 00:01:25,880 Speaker 2: Lucid to six and a half billion dollars all told. 20 00:01:26,160 --> 00:01:28,880 Speaker 2: A lot more to discuss on that later in the program. 21 00:01:29,040 --> 00:01:32,240 Speaker 2: These are the meggacap technology shares that we're watching in 22 00:01:32,280 --> 00:01:35,640 Speaker 2: a session this Monday. They are all moving to the downside. 23 00:01:35,760 --> 00:01:39,039 Speaker 2: Apple down a percentage point, It's down twelve percent year 24 00:01:39,080 --> 00:01:41,560 Speaker 2: to date, Alphabet pairent of Google down more than a 25 00:01:41,560 --> 00:01:44,319 Speaker 2: percentage point, Meta down seven ten to one percent. We 26 00:01:44,520 --> 00:01:48,400 Speaker 2: have an EU probe of each of those companies under 27 00:01:48,400 --> 00:01:51,200 Speaker 2: the Digital Markets Act. This is what EU Anti Trust 28 00:01:51,280 --> 00:01:53,880 Speaker 2: chief Margreta Vesta said earlier today. 29 00:01:54,960 --> 00:01:58,320 Speaker 3: These are serious cases. We've been able to solve that 30 00:01:58,800 --> 00:02:02,200 Speaker 3: with merely a discuss. It would have been resolved by now. 31 00:02:02,320 --> 00:02:05,160 Speaker 3: So we opened for good reasons because we find that 32 00:02:05,200 --> 00:02:10,280 Speaker 3: if this invertise come at compliance solutions, if they persist, 33 00:02:10,919 --> 00:02:14,120 Speaker 3: then consumers will not have the choice that they were 34 00:02:14,160 --> 00:02:16,160 Speaker 3: promised by the Digital Markets Act. 35 00:02:18,280 --> 00:02:21,560 Speaker 2: Let's go to Brussels and Bloomberg Samuel Stalton, Sam just 36 00:02:21,639 --> 00:02:25,600 Speaker 2: outline the basics of these probes under the Digital Markets 37 00:02:25,639 --> 00:02:28,400 Speaker 2: Act and how they relate to those US technology companies. 38 00:02:29,400 --> 00:02:33,480 Speaker 4: Yeah, good afternoon here from Brussels, ED and indeed we're 39 00:02:33,480 --> 00:02:37,200 Speaker 4: back here again the EU facing up to the dominance 40 00:02:37,360 --> 00:02:40,040 Speaker 4: of big tech. And this is the news today that 41 00:02:40,120 --> 00:02:44,400 Speaker 4: the European Commission has opened five Yes, that's five investigations 42 00:02:45,000 --> 00:02:49,359 Speaker 4: under its new Digital Markets Act rules targeting Apple, Google 43 00:02:49,840 --> 00:02:53,480 Speaker 4: and Meta. Now how serious is this really? Well, it's 44 00:02:53,480 --> 00:02:57,079 Speaker 4: certainly a statement of intent from Brussels, but it clearly 45 00:02:57,080 --> 00:03:01,359 Speaker 4: wants to enforce as robust as possible these new digital 46 00:03:01,360 --> 00:03:04,720 Speaker 4: competition rules, which only took hold just eighteen days ago 47 00:03:04,960 --> 00:03:06,080 Speaker 4: on March seventh. 48 00:03:07,480 --> 00:03:09,400 Speaker 2: So we played that click from vest there and one 49 00:03:09,400 --> 00:03:11,440 Speaker 2: of the questions she got in the press conference, which 50 00:03:11,480 --> 00:03:13,959 Speaker 2: I'm assuming you were in, was is this a bit 51 00:03:15,240 --> 00:03:18,520 Speaker 2: front run? Is this you moving quickly? And she basically said, no, 52 00:03:19,480 --> 00:03:23,560 Speaker 2: you know, we are moving in a timely fashion. We're 53 00:03:23,560 --> 00:03:27,760 Speaker 2: also showing the potential risks to these technology companies. This 54 00:03:27,880 --> 00:03:31,919 Speaker 2: explain what finds if they were to be fined, these 55 00:03:31,960 --> 00:03:34,640 Speaker 2: tech companies could be facing under an EU action. 56 00:03:35,840 --> 00:03:39,360 Speaker 4: Yeah, So from today, the Commission will aim to conclude 57 00:03:39,400 --> 00:03:43,400 Speaker 4: these investigations into Apple, Google and Meta within a period 58 00:03:43,400 --> 00:03:46,360 Speaker 4: of about twelve months. At the end of that twelve 59 00:03:46,360 --> 00:03:49,600 Speaker 4: month period it will adopt what's called a non compliance decision, 60 00:03:50,040 --> 00:03:53,280 Speaker 4: and with that power, it has the capacity to find 61 00:03:53,360 --> 00:03:57,440 Speaker 4: these companies up to ten percent of its global turnover 62 00:03:57,840 --> 00:04:01,840 Speaker 4: for those types of breaches under the and also it 63 00:04:01,880 --> 00:04:05,440 Speaker 4: has these additional powers in the case of repeated infringements 64 00:04:05,680 --> 00:04:09,240 Speaker 4: to find these firms up to twenty percent of their 65 00:04:09,280 --> 00:04:13,800 Speaker 4: global annual revenue or even mandates the breakup of some 66 00:04:13,840 --> 00:04:16,359 Speaker 4: of these companies. So it's a very very serious matter. 67 00:04:16,640 --> 00:04:18,640 Speaker 4: We're not quite at that stage yet. As I say, 68 00:04:18,720 --> 00:04:21,480 Speaker 4: there's this twelve month period to go through and til 69 00:04:21,520 --> 00:04:24,760 Speaker 4: the Commission comes to a decision, but that kicks off today. 70 00:04:25,960 --> 00:04:28,960 Speaker 2: And for a little size and scope, Apple's revenue in 71 00:04:29,000 --> 00:04:32,799 Speaker 2: twenty twenty three was three hundred and eighty three billion dollars, 72 00:04:32,839 --> 00:04:35,000 Speaker 2: so twenty percent of that is a hefty chunker change. 73 00:04:35,000 --> 00:04:38,680 Speaker 2: But in Samuel Stalton in Brussels, terrific reporting. Thank you. 74 00:04:39,160 --> 00:04:42,040 Speaker 2: The euprobe isn't the only anti trust story coming out 75 00:04:42,040 --> 00:04:45,080 Speaker 2: of Apple last week. The DOJ here in the US 76 00:04:45,200 --> 00:04:49,920 Speaker 2: father suit accusing Apple of violating antitrust laws and suppressing 77 00:04:49,960 --> 00:04:52,760 Speaker 2: competition in the culmination of what was a five year 78 00:04:52,839 --> 00:04:56,320 Speaker 2: probe into the company. I want to speak to John Bergmeyer, 79 00:04:56,440 --> 00:04:59,680 Speaker 2: legal director at Public Knowledge, and go a bit deeper 80 00:04:59,760 --> 00:05:02,080 Speaker 2: on this. We were reflecting last week this was a 81 00:05:02,080 --> 00:05:05,880 Speaker 2: big story. You know, from a market's perspective, it's rare 82 00:05:06,000 --> 00:05:09,960 Speaker 2: that a stock shows the pressure of an antitrust action. 83 00:05:10,680 --> 00:05:13,359 Speaker 2: What is your assessment of how strong the DOJ case 84 00:05:13,480 --> 00:05:14,719 Speaker 2: is against Apple? 85 00:05:16,040 --> 00:05:17,200 Speaker 5: I think it's very strong. 86 00:05:17,360 --> 00:05:21,760 Speaker 6: They listed about five behaviors that are not intended to 87 00:05:21,800 --> 00:05:24,640 Speaker 6: gather up all the different complaints that people have about Apple, 88 00:05:24,680 --> 00:05:27,200 Speaker 6: but rather the five behaviors that they think most probably 89 00:05:27,279 --> 00:05:28,039 Speaker 6: violate the law. 90 00:05:30,240 --> 00:05:32,440 Speaker 5: So tho you know, God. 91 00:05:32,760 --> 00:05:34,520 Speaker 2: No, I'm sorry, John, Please continue your thought. 92 00:05:35,800 --> 00:05:36,000 Speaker 5: Yeah. 93 00:05:36,960 --> 00:05:41,039 Speaker 6: Those include using the app store monopoly to prevent certain 94 00:05:41,080 --> 00:05:44,599 Speaker 6: categories apps from competing, blocking banks from accessing the NFC 95 00:05:45,279 --> 00:05:49,200 Speaker 6: chip and other matters, and those classic exclusionary behaviors where 96 00:05:49,200 --> 00:05:52,760 Speaker 6: companies that have a dominant market share, market power, monopoly power, 97 00:05:52,800 --> 00:05:54,960 Speaker 6: whatever you want to call it, they're usually prevented from 98 00:05:55,040 --> 00:05:57,360 Speaker 6: doing things that block out competitors. I think the DJ 99 00:05:57,520 --> 00:05:59,760 Speaker 6: put forward a very compelling narrative showing how Apple, for 100 00:05:59,800 --> 00:06:00,840 Speaker 6: you US, has done just that. 101 00:06:02,960 --> 00:06:08,240 Speaker 2: The Apple argument in this is essentially that the consumer 102 00:06:08,279 --> 00:06:12,159 Speaker 2: does have choice right that they Apple are the maker 103 00:06:12,279 --> 00:06:16,159 Speaker 2: of a creative market. Do you think that that a 104 00:06:16,240 --> 00:06:20,640 Speaker 2: competitive market right in that they offer developers the opportunity 105 00:06:20,760 --> 00:06:23,719 Speaker 2: to make a living, to make apps that are competitive 106 00:06:23,760 --> 00:06:27,280 Speaker 2: with one another. Does that give them any chance of 107 00:06:27,440 --> 00:06:30,200 Speaker 2: warding off this fight from the DOJ, I don't. 108 00:06:31,200 --> 00:06:31,839 Speaker 5: I don't think so. 109 00:06:32,000 --> 00:06:33,760 Speaker 6: If you're a developer, you have no choice but to 110 00:06:33,800 --> 00:06:36,960 Speaker 6: develop for both iOS and Android. And I really doubt 111 00:06:36,960 --> 00:06:40,960 Speaker 6: that the majority of iPhone customers buy iPhones because specifically 112 00:06:41,000 --> 00:06:44,640 Speaker 6: of these exclusive practices. Apple makes excellent products. No one's 113 00:06:44,640 --> 00:06:46,640 Speaker 6: denying that I have an iPhone and I love it. 114 00:06:47,200 --> 00:06:49,640 Speaker 6: The question is not whether Apple makes good products and 115 00:06:49,640 --> 00:06:51,800 Speaker 6: whether it competes, but whether it can use its product 116 00:06:51,880 --> 00:06:56,240 Speaker 6: to control other markets like smartwatches or payment apps. 117 00:06:57,800 --> 00:07:00,800 Speaker 2: John, you work at public knowledge, and I'm summarizing that 118 00:07:00,800 --> 00:07:03,040 Speaker 2: the goal of public knowledge is to make sure that 119 00:07:04,000 --> 00:07:06,760 Speaker 2: each part of the technology and its stakeholders have a 120 00:07:06,880 --> 00:07:08,120 Speaker 2: say in the future. 121 00:07:08,240 --> 00:07:08,440 Speaker 7: Right. 122 00:07:08,720 --> 00:07:12,840 Speaker 2: One of the things that gets debated in the antitrust 123 00:07:12,880 --> 00:07:16,120 Speaker 2: context is who is it serving? Who is it protecting? 124 00:07:16,800 --> 00:07:20,240 Speaker 2: And the argument from the DOJ is that it is 125 00:07:20,280 --> 00:07:23,040 Speaker 2: protecting the consumer. Right, it is making sure that it 126 00:07:23,560 --> 00:07:26,800 Speaker 2: ends in a policy change at Apple that would allow 127 00:07:26,880 --> 00:07:29,680 Speaker 2: for the consumer to have greater choice. But does that 128 00:07:29,760 --> 00:07:33,239 Speaker 2: actually ever happen? Does that actually ever become the end result? 129 00:07:34,840 --> 00:07:37,400 Speaker 6: I think it does very frequently with anti trust cases, 130 00:07:37,520 --> 00:07:41,120 Speaker 6: they do take a long time to litigate, and antitrust 131 00:07:41,160 --> 00:07:44,280 Speaker 6: is not the only tool that policymakers have to protect consumers. 132 00:07:44,640 --> 00:07:47,440 Speaker 6: But here, you know, I repeat again Apple, The DOJ 133 00:07:47,640 --> 00:07:50,200 Speaker 6: is not suing Apple for having products that are too 134 00:07:50,280 --> 00:07:53,760 Speaker 6: good or too integrated. It's suing Apple for blocking competitors 135 00:07:53,760 --> 00:07:56,240 Speaker 6: from doing the same thing on the Apple platform, which 136 00:07:56,320 --> 00:07:58,880 Speaker 6: is so dominant that if you're a competitor, if you're 137 00:07:58,880 --> 00:08:00,760 Speaker 6: a competitor, or if you're an Apple developer, you simply 138 00:08:00,840 --> 00:08:03,960 Speaker 6: have no choice but to develop for the iPhone. 139 00:08:04,400 --> 00:08:06,800 Speaker 2: You just mentioned there that it's not the only tool. 140 00:08:06,800 --> 00:08:10,160 Speaker 2: We often talk about regulating through the courts, but there 141 00:08:10,240 --> 00:08:14,080 Speaker 2: is also, of course lawmaking on Capitol Hill. Is there 142 00:08:14,120 --> 00:08:16,280 Speaker 2: an avenue do you think for Apple to reach some 143 00:08:16,400 --> 00:08:19,040 Speaker 2: kind of settlement with the DOJ where they could just 144 00:08:19,080 --> 00:08:20,720 Speaker 2: work this out behind closed doors? 145 00:08:22,280 --> 00:08:24,400 Speaker 6: You know, I really couldn't predict whether to be a settlement. 146 00:08:24,720 --> 00:08:27,160 Speaker 6: Apple's going to file an answer to the DOJ's complaint. 147 00:08:27,200 --> 00:08:29,000 Speaker 6: That's going to set forth east side of the story. 148 00:08:29,040 --> 00:08:32,400 Speaker 6: And like I say, litigation often takes years to develop. 149 00:08:32,520 --> 00:08:34,960 Speaker 6: In the meantime, though Congress is not sitting on its hands, 150 00:08:35,559 --> 00:08:37,800 Speaker 6: and other regulators around the world are not sitting on 151 00:08:37,840 --> 00:08:41,280 Speaker 6: their hands. Congress introduced a bill it did not pass 152 00:08:41,320 --> 00:08:43,800 Speaker 6: a while ago, called the Access Act, which would have 153 00:08:43,960 --> 00:08:46,679 Speaker 6: opened up the app store monopoly just a little bit. 154 00:08:47,280 --> 00:08:50,040 Speaker 6: And as you've just reported in Europe, you know Europe 155 00:08:50,120 --> 00:08:50,720 Speaker 6: is taking action. 156 00:08:50,800 --> 00:08:52,240 Speaker 5: There's litigation in Australia. 157 00:08:52,640 --> 00:08:54,920 Speaker 6: So it's going to be a very complicated situation, I 158 00:08:54,960 --> 00:08:58,079 Speaker 6: think globally for Apple, and ultimately maybe it isn't their 159 00:08:58,080 --> 00:08:59,560 Speaker 6: interest to try to settle and try. 160 00:08:59,400 --> 00:09:01,559 Speaker 5: To resolve some of these disputes. 161 00:09:01,600 --> 00:09:03,520 Speaker 6: But Apple so far has shown that it just wants 162 00:09:03,559 --> 00:09:06,840 Speaker 6: to fight tooth and nail and resist any attempt to 163 00:09:06,880 --> 00:09:08,240 Speaker 6: regulate over changes behavior. 164 00:09:08,840 --> 00:09:11,480 Speaker 2: It is getting complicated. As you point out, Apple is 165 00:09:11,520 --> 00:09:14,439 Speaker 2: facing antitrust scrutiny on two fronts, the DOJ in the 166 00:09:14,520 --> 00:09:17,319 Speaker 2: US and under the digital market apps in Europe. And 167 00:09:17,360 --> 00:09:19,000 Speaker 2: I just want to say, because it was REMISSI of 168 00:09:19,000 --> 00:09:21,680 Speaker 2: me not to that. If you read the Bloomberg story, 169 00:09:21,720 --> 00:09:25,080 Speaker 2: each of the companies Apple, Alphabet and Meta gave a 170 00:09:25,080 --> 00:09:28,199 Speaker 2: pretty full response saying we are compliant with the DMA. 171 00:09:28,480 --> 00:09:30,760 Speaker 2: So I encourage our audience to go and look at 172 00:09:30,760 --> 00:09:34,199 Speaker 2: those responses. John Bergmeyer, legal director at Public Knowledge. Thank 173 00:09:34,280 --> 00:09:36,760 Speaker 2: you very much now, sticking with Apple for a second, 174 00:09:36,760 --> 00:09:40,840 Speaker 2: Apple CEO Tim Cook has revealed plans to invest further 175 00:09:40,920 --> 00:09:45,120 Speaker 2: in supply chain, stores and research in China. State Media 176 00:09:45,160 --> 00:09:47,200 Speaker 2: says he also made the promise in a meeting with 177 00:09:47,720 --> 00:09:51,439 Speaker 2: Beijing's Commerce Minister. Cook also spoke at the annual China 178 00:09:51,520 --> 00:09:55,520 Speaker 2: Development Forum, saying AI will be an essential tool for 179 00:09:55,640 --> 00:09:59,160 Speaker 2: helping businesses reduce their carbon footprints. 180 00:10:00,240 --> 00:10:03,440 Speaker 8: We would not be able to recover the level of 181 00:10:03,520 --> 00:10:08,320 Speaker 8: material that we do today for recycling without AI. I 182 00:10:08,320 --> 00:10:13,480 Speaker 8: mean it's already fundamental in our calculation, and I think 183 00:10:13,600 --> 00:10:18,640 Speaker 8: it provides an enormous tool and the toolkit for every 184 00:10:18,720 --> 00:10:23,040 Speaker 8: company that's wishing to be carbon neutral or to lower 185 00:10:23,080 --> 00:10:27,800 Speaker 8: their emissions by substantial amount. 186 00:10:35,360 --> 00:10:39,040 Speaker 2: Okay, So, Lucid trading up around five to six percent 187 00:10:39,200 --> 00:10:42,040 Speaker 2: right now at its session. Higher have been up twenty 188 00:10:42,160 --> 00:10:45,720 Speaker 2: one percent as the company received a one billion dollar 189 00:10:45,760 --> 00:10:49,040 Speaker 2: cash injection from its biggest investor, in affiliate of Saudi 190 00:10:49,080 --> 00:10:53,960 Speaker 2: Arabia's public Investment Fund, providing electric car maker Frankly with 191 00:10:54,360 --> 00:10:58,120 Speaker 2: a further lifeline. Here to discuss his Bloomberg's Global Auto's 192 00:10:58,240 --> 00:11:00,560 Speaker 2: editor Craig Throudew and London, I mean you and I 193 00:11:00,559 --> 00:11:04,520 Speaker 2: have been following Lucid a long time, well before the 194 00:11:04,920 --> 00:11:07,840 Speaker 2: reverse merger with this fact that took them public. But 195 00:11:07,960 --> 00:11:10,240 Speaker 2: the point of that is that we've also tracked the 196 00:11:10,280 --> 00:11:14,000 Speaker 2: billions of dollars that the PI, the PITH, PIF and 197 00:11:14,040 --> 00:11:15,839 Speaker 2: its affiliates have put in. Just bring us on to 198 00:11:15,880 --> 00:11:19,120 Speaker 2: speed on how much cash Saudis have put into Lucid 199 00:11:19,160 --> 00:11:19,520 Speaker 2: so far. 200 00:11:21,000 --> 00:11:23,240 Speaker 9: Yeah, I mean this is you know, people talk about 201 00:11:23,240 --> 00:11:26,080 Speaker 9: the Federal Reserve put, you know, the FED put. This 202 00:11:26,160 --> 00:11:29,320 Speaker 9: is the PITH put, if you will. This is another 203 00:11:29,360 --> 00:11:33,680 Speaker 9: billion that the Saudis are putting into Lucid. This is 204 00:11:33,760 --> 00:11:36,920 Speaker 9: on top of a five point four billion that that 205 00:11:37,040 --> 00:11:40,520 Speaker 9: Lucid has said has already been put in by their 206 00:11:40,520 --> 00:11:44,360 Speaker 9: biggest shareholder, and it really was necessary. I mean, it's 207 00:11:44,520 --> 00:11:47,080 Speaker 9: it may be the case that this is not the 208 00:11:47,200 --> 00:11:50,640 Speaker 9: last capital race that we see this year, because this 209 00:11:50,760 --> 00:11:54,080 Speaker 9: is a company that, you know, going into twenty twenty 210 00:11:54,080 --> 00:11:56,960 Speaker 9: four had only a little bit over four billion on 211 00:11:57,000 --> 00:12:00,000 Speaker 9: its balance sheet and there were some expectations among animal 212 00:12:00,120 --> 00:12:02,120 Speaker 9: us that you know, roughly all of that could be 213 00:12:02,160 --> 00:12:04,880 Speaker 9: accounted for in cash burn this year. And so you know, 214 00:12:05,200 --> 00:12:07,880 Speaker 9: Lucid has been a company that you know, when it 215 00:12:08,400 --> 00:12:11,280 Speaker 9: was going public through a reverse merger was looked at 216 00:12:11,320 --> 00:12:15,199 Speaker 9: as you know, a potential Tesla challenger. It's really struggled 217 00:12:15,200 --> 00:12:18,800 Speaker 9: to live up to those expectations and get you know, 218 00:12:19,280 --> 00:12:22,160 Speaker 9: manufacturing going right. I think it let a lot of 219 00:12:22,200 --> 00:12:26,160 Speaker 9: investors down, with their outlook for this year being really 220 00:12:26,200 --> 00:12:28,559 Speaker 9: just a small increase from last year's production. 221 00:12:29,320 --> 00:12:31,280 Speaker 2: Yeah, that seems to be the story of Lucid, right. 222 00:12:31,280 --> 00:12:33,960 Speaker 2: I think they're guiding to nine thousand units this year. 223 00:12:33,960 --> 00:12:36,520 Speaker 2: It's a premium price point they needed eighty five hundred 224 00:12:36,640 --> 00:12:41,240 Speaker 2: last year. But at the same time, there's an EV 225 00:12:41,559 --> 00:12:44,240 Speaker 2: problem generally. Where does Lucid sit within that? 226 00:12:45,720 --> 00:12:48,000 Speaker 9: Yeah, I mean I think there is some hope that 227 00:12:48,080 --> 00:12:51,880 Speaker 9: maybe moving into a new segment into sport utility vehicles 228 00:12:51,880 --> 00:12:56,200 Speaker 9: with the gravity would be you know, a big help 229 00:12:56,240 --> 00:12:58,800 Speaker 9: for them. They to your point, are playing at the 230 00:12:58,840 --> 00:13:03,960 Speaker 9: higher end, and the level of competition there is particularly high. 231 00:13:04,000 --> 00:13:04,480 Speaker 5: In the US. 232 00:13:04,520 --> 00:13:07,720 Speaker 9: I think we've seen you know, so much more you know, 233 00:13:07,800 --> 00:13:11,120 Speaker 9: fighting up at the upper ends of the market where 234 00:13:11,120 --> 00:13:14,520 Speaker 9: we haven't really seen as we have in China, you know, 235 00:13:14,960 --> 00:13:19,440 Speaker 9: cutthrough competition among you know, cheap evs, and so you know, 236 00:13:19,520 --> 00:13:21,880 Speaker 9: when you have when you have to go up against 237 00:13:21,880 --> 00:13:25,400 Speaker 9: more established players like the Mercedes you know and BMW's 238 00:13:25,440 --> 00:13:28,840 Speaker 9: of the world. It's really tough, and Lucid has compelling 239 00:13:28,880 --> 00:13:31,640 Speaker 9: product that the issue that they've had is not being 240 00:13:31,679 --> 00:13:34,320 Speaker 9: able to make enough of it and to be able 241 00:13:34,360 --> 00:13:37,280 Speaker 9: to to make U you know, their their evs without 242 00:13:37,280 --> 00:13:40,040 Speaker 9: losing a ton of money. Uh, you know, the more 243 00:13:40,320 --> 00:13:42,520 Speaker 9: they're making, the more they're losing. And that's not a 244 00:13:42,520 --> 00:13:44,040 Speaker 9: trend that can be sustained. 245 00:13:45,240 --> 00:13:47,760 Speaker 2: As Elon Musk has teased them about in the past, 246 00:13:48,160 --> 00:13:52,040 Speaker 2: prose types of easy production is hard. Overnight, Bloomberg News 247 00:13:52,040 --> 00:13:55,319 Speaker 2: spoke to the CEO c at L, the world's biggest 248 00:13:55,360 --> 00:13:58,720 Speaker 2: maker of batteries for evs. What were the main takeaways 249 00:13:58,840 --> 00:13:59,680 Speaker 2: from that interview. 250 00:14:00,880 --> 00:14:03,040 Speaker 9: I think one of the big ones, of course, was 251 00:14:03,080 --> 00:14:06,319 Speaker 9: an exclusive that ed you were a part of earlier 252 00:14:06,320 --> 00:14:09,520 Speaker 9: this year. This idea that c at L did have 253 00:14:09,960 --> 00:14:12,920 Speaker 9: some equipment that was idle in China that Tesla is 254 00:14:12,960 --> 00:14:15,840 Speaker 9: going to make use of by making more batteries at 255 00:14:15,880 --> 00:14:19,720 Speaker 9: its factory in Nevada. I think this is a company that, 256 00:14:19,840 --> 00:14:22,560 Speaker 9: you know, is really sort of pressing ahead in spite 257 00:14:22,560 --> 00:14:25,280 Speaker 9: of the fact that we're seeing an ev slowdown and 258 00:14:25,520 --> 00:14:29,120 Speaker 9: you know, sort of vowing to continue to add capacity, 259 00:14:29,200 --> 00:14:31,880 Speaker 9: and I think we're seeing this sort of you know, 260 00:14:31,960 --> 00:14:34,440 Speaker 9: broader trend, whether it's c at L on the battery 261 00:14:34,480 --> 00:14:38,120 Speaker 9: side or by D which makes both EV's and batteries. 262 00:14:38,440 --> 00:14:41,120 Speaker 9: You know, the real dominant players in China are sort 263 00:14:41,160 --> 00:14:44,320 Speaker 9: of pressing their advantages over the others and you know, 264 00:14:44,880 --> 00:14:49,360 Speaker 9: continuing to add capacity, cut price, and you know, the 265 00:14:49,440 --> 00:14:52,040 Speaker 9: question is going to be, you know, how much longer 266 00:14:52,200 --> 00:14:55,600 Speaker 9: some of the you know, lesser companies in China can 267 00:14:55,640 --> 00:14:58,680 Speaker 9: sustain themselves, you know, in the face of the big 268 00:14:58,720 --> 00:15:01,880 Speaker 9: getting bigger and getting all the more aggressive to sort of, 269 00:15:01,920 --> 00:15:04,360 Speaker 9: you know, drive out the players who can't keep up. 270 00:15:05,760 --> 00:15:08,360 Speaker 2: Bloomberg's Global Cars editor Craive Trudell. Great to have you 271 00:15:08,400 --> 00:15:10,120 Speaker 2: on the program. Thank you. Now coming up here on 272 00:15:10,120 --> 00:15:14,800 Speaker 2: Bloombog technology, a shakeup at Stability AI and it's c suite, 273 00:15:14,840 --> 00:15:19,040 Speaker 2: more on the resignation of CEO m A. Musqut. Next, 274 00:15:19,520 --> 00:15:21,960 Speaker 2: we're also taking a look at shares of Boeing. You 275 00:15:22,120 --> 00:15:25,440 Speaker 2: must have seen this story up eight ten to one percent, 276 00:15:25,520 --> 00:15:29,600 Speaker 2: way off session highs. CEO Dave Calhoun will step down 277 00:15:29,640 --> 00:15:31,840 Speaker 2: at the end of this year. There are pretty sweeping 278 00:15:31,880 --> 00:15:35,960 Speaker 2: overhauls of leadership Larry Kellner will not stand for reelection 279 00:15:37,040 --> 00:15:40,000 Speaker 2: as chairman and stand deal the guy on the right 280 00:15:40,000 --> 00:15:41,840 Speaker 2: hand side of you the screen, the guy that led 281 00:15:41,920 --> 00:15:46,360 Speaker 2: the commercial business in the commercial airplane division is also 282 00:15:46,520 --> 00:15:51,200 Speaker 2: departing with immediate effect. That is the big story out 283 00:15:51,200 --> 00:16:13,960 Speaker 2: of the aerospace industry this Monday. This is Bloomberg Technology. Okay, 284 00:16:14,000 --> 00:16:16,200 Speaker 2: it's time for talking tech and in the news. Match 285 00:16:16,240 --> 00:16:19,640 Speaker 2: Group is naming two directors to its board following talks 286 00:16:19,640 --> 00:16:22,840 Speaker 2: with activist investors. Elliott Management, the owner of dating apps 287 00:16:22,840 --> 00:16:26,360 Speaker 2: Tender and Hinge, will add Instacart chief marketing officer Laura 288 00:16:26,480 --> 00:16:31,040 Speaker 2: Jones and Zillo co founder Spencer Raskoff to its board immediately. 289 00:16:31,080 --> 00:16:34,520 Speaker 2: Match also said its signed an information sharing agreement with 290 00:16:34,640 --> 00:16:39,320 Speaker 2: Elliott in an effort to quote facilitate ongoing collaboration towards value. 291 00:16:39,440 --> 00:16:42,640 Speaker 2: The company plans to update shareholders on its strategy at 292 00:16:42,640 --> 00:16:47,120 Speaker 2: an upcoming investor day. Plus AI chips startup Elian raises 293 00:16:47,200 --> 00:16:50,160 Speaker 2: sixty million dollars in a Series B funding round led 294 00:16:50,200 --> 00:16:54,160 Speaker 2: by Samsung and Tiger Global. The company provides tech that 295 00:16:54,480 --> 00:16:58,480 Speaker 2: unifies semiconductors to work more smoothly and faster. The funding 296 00:16:58,520 --> 00:17:01,360 Speaker 2: comes as the leader of a semi conductors in Nvidia 297 00:17:01,680 --> 00:17:05,000 Speaker 2: put forward its path of combining chips to work as one, 298 00:17:05,080 --> 00:17:08,240 Speaker 2: relying on the work of companies like Elian to help 299 00:17:08,320 --> 00:17:11,199 Speaker 2: realize their goals, and this is a big one. Stability 300 00:17:11,280 --> 00:17:15,560 Speaker 2: AI CEO M. A. Mustik has resigned. The move comes 301 00:17:15,600 --> 00:17:19,480 Speaker 2: amid quarrels with investors and waves of senior staff departures 302 00:17:19,640 --> 00:17:22,720 Speaker 2: at the British AI startup. In a blog post released Friday, 303 00:17:22,960 --> 00:17:26,680 Speaker 2: Stability AI said it's COO and CTO will serve as 304 00:17:26,760 --> 00:17:30,159 Speaker 2: interim co CEOs. The company's best known for his image 305 00:17:30,200 --> 00:17:33,920 Speaker 2: generation tool Stable Diffusion, and it helped kick off the 306 00:17:33,960 --> 00:17:38,159 Speaker 2: AI frenzy, reaching a value of one billion dollars in 307 00:17:38,200 --> 00:17:40,680 Speaker 2: twenty twenty two. I want to bring in somebody who 308 00:17:40,760 --> 00:17:43,399 Speaker 2: was at the heart of the reporting on this story, 309 00:17:43,440 --> 00:17:46,399 Speaker 2: Bloomberg's Rachel Metz, and I don't say that lightly. You 310 00:17:46,520 --> 00:17:51,240 Speaker 2: covered every single step in this story. But ultimately Emmad 311 00:17:51,359 --> 00:17:52,119 Speaker 2: has resigned. 312 00:17:52,520 --> 00:17:56,600 Speaker 7: What do we know well, we know that he said 313 00:17:56,600 --> 00:18:01,600 Speaker 7: that he is stepping down to work on solving the 314 00:18:02,040 --> 00:18:03,280 Speaker 7: concentration of. 315 00:18:03,280 --> 00:18:04,400 Speaker 10: Power in AI. 316 00:18:05,920 --> 00:18:08,600 Speaker 7: We had been thinking for a while that he may 317 00:18:08,600 --> 00:18:12,199 Speaker 7: be stepping down, and we'd heard rumors about it. We 318 00:18:12,200 --> 00:18:15,240 Speaker 7: were aware that some of the people behind the original 319 00:18:15,320 --> 00:18:18,680 Speaker 7: version of stable Diffusion, who had been in the company 320 00:18:18,680 --> 00:18:22,639 Speaker 7: for quite a while, we're leaving the company. So perhaps 321 00:18:22,720 --> 00:18:26,200 Speaker 7: this helped shift his decision. It's a little bit unclear 322 00:18:26,200 --> 00:18:27,120 Speaker 7: at this point. 323 00:18:27,760 --> 00:18:30,679 Speaker 2: What I've learned over the last few months of you're reporting, Rachel, 324 00:18:30,720 --> 00:18:34,399 Speaker 2: is that there's the company that can all cannot be 325 00:18:34,520 --> 00:18:36,920 Speaker 2: well known, and then there's the tool, right, the generative 326 00:18:36,960 --> 00:18:40,600 Speaker 2: AI tool. In this case, stable diffusion works well, doesn't 327 00:18:40,600 --> 00:18:44,600 Speaker 2: it It isn't well known and leading piece of technology. 328 00:18:45,920 --> 00:18:47,880 Speaker 10: That's correct. It is well known. 329 00:18:48,000 --> 00:18:50,639 Speaker 7: It is a leading piece of technology. It was originally 330 00:18:50,680 --> 00:18:56,320 Speaker 7: developed by a handful of researchers in Germany, and imaed 331 00:18:56,640 --> 00:19:01,080 Speaker 7: stepped in and offered to pay for compute to further 332 00:19:01,200 --> 00:19:04,280 Speaker 7: train this existing model. Previously it was called latent diffusion. 333 00:19:04,320 --> 00:19:09,760 Speaker 7: They renamed it stable diffusion, and IMA decided to spread 334 00:19:09,760 --> 00:19:12,720 Speaker 7: it far and wide, essentially through Stability AI, and that 335 00:19:12,840 --> 00:19:15,640 Speaker 7: helped bring it to the public and popularize it and 336 00:19:16,200 --> 00:19:18,200 Speaker 7: really touched off a lot of what we're seeing now 337 00:19:18,200 --> 00:19:20,240 Speaker 7: in terms of the generative AI boom. 338 00:19:21,480 --> 00:19:24,600 Speaker 2: So, what's left at Stability AI, or should I say 339 00:19:24,640 --> 00:19:26,399 Speaker 2: who is left at Stability AI? 340 00:19:27,680 --> 00:19:30,520 Speaker 7: This is a good question, and we're trying to figure 341 00:19:30,560 --> 00:19:31,680 Speaker 7: out some of this now. 342 00:19:31,800 --> 00:19:34,560 Speaker 10: I mean in terms of like top. 343 00:19:34,400 --> 00:19:38,560 Speaker 7: Tier researchers, I'm not sure if there are that many 344 00:19:38,640 --> 00:19:39,920 Speaker 7: people left there. 345 00:19:39,920 --> 00:19:41,879 Speaker 10: Some of the best best people just left. 346 00:19:42,440 --> 00:19:44,359 Speaker 7: Trying to we have, like you know, we're trying to 347 00:19:44,359 --> 00:19:47,479 Speaker 7: figure out, like who on this list of names from 348 00:19:47,760 --> 00:19:50,840 Speaker 7: some of their biggest research papers is actually still there. 349 00:19:51,760 --> 00:19:54,240 Speaker 7: We're going to have to take a look and see 350 00:19:54,240 --> 00:19:55,640 Speaker 7: what's happening very soon. 351 00:19:56,960 --> 00:19:59,080 Speaker 2: You have to remember who put the companies in these 352 00:19:59,119 --> 00:20:01,239 Speaker 2: positions right used to get their name out there. Here 353 00:20:01,240 --> 00:20:04,159 Speaker 2: are some of the investors behind stability AI. 354 00:20:05,359 --> 00:20:08,760 Speaker 7: CO two and light Speed, and then there's also a 355 00:20:08,800 --> 00:20:13,600 Speaker 7: bunch of smaller and individual investors as well that went 356 00:20:13,640 --> 00:20:16,960 Speaker 7: through like multiple rounds. I mean, it's important to remember 357 00:20:17,000 --> 00:20:21,159 Speaker 7: also that stability AI didn't just emerge fully formed in 358 00:20:21,200 --> 00:20:22,720 Speaker 7: the summer of twenty twenty two. 359 00:20:22,840 --> 00:20:25,280 Speaker 10: It was originally created. 360 00:20:25,200 --> 00:20:29,520 Speaker 7: As a way to use I think it was AI 361 00:20:29,800 --> 00:20:34,320 Speaker 7: to help with COVID related research or rounding up COVID 362 00:20:34,320 --> 00:20:37,639 Speaker 7: related research, if memory serves, and then it sort of 363 00:20:37,680 --> 00:20:39,359 Speaker 7: shifted gears at a. 364 00:20:39,240 --> 00:20:42,640 Speaker 10: Certain point, probably in early twenty twenty two. 365 00:20:43,480 --> 00:20:45,520 Speaker 2: All right, Bloonbose, Rachel Mets who as I say, you 366 00:20:45,560 --> 00:20:48,720 Speaker 2: have been all across the spilid Tai story for months, 367 00:20:48,720 --> 00:20:50,879 Speaker 2: and we appreciated reporting. 368 00:20:58,480 --> 00:21:01,760 Speaker 11: After years in the making, the United States Department of 369 00:21:01,960 --> 00:21:07,159 Speaker 11: Justice has filed its antitrust lawsuit against Apple, threatening its 370 00:21:07,320 --> 00:21:11,360 Speaker 11: underlying business model. The government is taking aim at Apple's 371 00:21:11,400 --> 00:21:17,600 Speaker 11: policies surrounding super apps, cloud gaming services, messaging, tap to pay, 372 00:21:18,000 --> 00:21:20,760 Speaker 11: and support on the iPhone for third party smart watches. 373 00:21:20,960 --> 00:21:24,280 Speaker 11: While Apple has clearly had a negative impact on partners 374 00:21:24,680 --> 00:21:28,520 Speaker 11: like component suppliers and app developers, the first iteration of 375 00:21:28,560 --> 00:21:30,840 Speaker 11: the DOJ's case doesn't really. 376 00:21:30,840 --> 00:21:32,679 Speaker 5: Prove about Apple has harmed consumers. 377 00:21:33,000 --> 00:21:37,800 Speaker 11: Apple has already addressed several of the DOJ's complaints, pledging 378 00:21:37,840 --> 00:21:41,679 Speaker 11: to adopt rcs to enable better texting between iPhones and 379 00:21:41,680 --> 00:21:44,760 Speaker 11: Android devices, and the company has shown that it will 380 00:21:44,800 --> 00:21:48,159 Speaker 11: add new features for developers in the cloud gaming in 381 00:21:48,240 --> 00:21:51,320 Speaker 11: super app spaces. The DOJ is right that the Apple 382 00:21:51,359 --> 00:21:54,639 Speaker 11: Watch is favored over third party smart watches and that 383 00:21:54,800 --> 00:21:58,240 Speaker 11: Apple blocks third party apps from using the NFC chip 384 00:21:58,359 --> 00:21:59,560 Speaker 11: in the iPhone. 385 00:21:59,240 --> 00:22:00,119 Speaker 1: For tap to pay. 386 00:22:00,640 --> 00:22:04,399 Speaker 11: Apple should absolutely address both concerns, but for now it 387 00:22:04,480 --> 00:22:07,000 Speaker 11: seems likely that the entire lawsuit will take a few 388 00:22:07,040 --> 00:22:11,480 Speaker 11: years to result in major changes. Still, I ultimately expect 389 00:22:11,560 --> 00:22:14,880 Speaker 11: Apple to crack the iPhone open in the same vein 390 00:22:14,960 --> 00:22:17,399 Speaker 11: as it is doing in the European Union because of 391 00:22:17,440 --> 00:22:20,439 Speaker 11: the Digital Markets Act. All of that being said, the 392 00:22:20,520 --> 00:22:24,440 Speaker 11: DOJ is still distracting from some real issues by focusing 393 00:22:24,440 --> 00:22:29,080 Speaker 11: on result matters, including making frivolous claims that Apple is 394 00:22:29,160 --> 00:22:32,399 Speaker 11: behind the downfall of the Amazon firephone. 395 00:22:32,160 --> 00:22:33,240 Speaker 2: A decade ago. 396 00:22:33,720 --> 00:22:37,880 Speaker 11: Still, things can change quickly, especially when new evidence emerges 397 00:22:37,960 --> 00:22:41,080 Speaker 11: in a trial. Ultimately, the lawsuit seems a bit frivolous, 398 00:22:41,440 --> 00:22:43,760 Speaker 11: But there is a lot that Apple has changed, and 399 00:22:43,800 --> 00:22:46,760 Speaker 11: there's a lot that it can still change. I'm Markerman 400 00:22:46,960 --> 00:22:48,280 Speaker 11: for Bloomberg News. 401 00:22:52,119 --> 00:22:54,919 Speaker 2: That was this week's Power On with Boomers. Mark German. 402 00:22:55,040 --> 00:22:56,760 Speaker 2: Let's take a quick look Apple shares with down more 403 00:22:56,800 --> 00:23:01,880 Speaker 2: than a percentage point in the session. There the probe 404 00:23:01,880 --> 00:23:05,280 Speaker 2: by the European Commission in Europe in the context of 405 00:23:05,280 --> 00:23:08,560 Speaker 2: the Digital Markets Act. When we covered the DOJ suit 406 00:23:08,680 --> 00:23:12,480 Speaker 2: last week, the stockfell four percent Thursday, biggest drop since August, 407 00:23:13,040 --> 00:23:15,800 Speaker 2: but the entirety of its decline year state's about twelve percent. 408 00:23:15,840 --> 00:23:19,080 Speaker 2: It's a stock that's starting to feel the antitrust pressure. 409 00:23:19,080 --> 00:23:21,160 Speaker 2: We talked about that in two fronts, just real quick 410 00:23:21,160 --> 00:23:24,960 Speaker 2: on the DMA, and Apple spokesperson did tell Bloomberg that 411 00:23:25,080 --> 00:23:27,840 Speaker 2: Apple feels it is fully compliant with the DMA. This 412 00:23:27,960 --> 00:23:30,679 Speaker 2: is bitcoin, and you noticed that jump just before we 413 00:23:30,720 --> 00:23:35,320 Speaker 2: came on air, back up towards seventy thousand US dollars 414 00:23:35,560 --> 00:23:38,520 Speaker 2: per token. There is a calendar moment coming up. Bitcoin 415 00:23:38,960 --> 00:23:43,000 Speaker 2: is approaching its highly anticipated halving event, which was lower 416 00:23:43,040 --> 00:23:47,480 Speaker 2: the supply of newly minted bitcoin from minors. Bitcoin of 417 00:23:47,520 --> 00:23:50,439 Speaker 2: course hit records after each of the last three harvings 418 00:23:50,480 --> 00:23:52,679 Speaker 2: got a good guest view. Let's bring in Strike CEO 419 00:23:53,080 --> 00:23:56,240 Speaker 2: Jack Mallers, who I have discussed this with before. But Jack, 420 00:23:56,359 --> 00:23:58,720 Speaker 2: just give me your thoughts on the harving. 421 00:24:00,320 --> 00:24:01,760 Speaker 1: What's going on? Ed, I miss you brother. 422 00:24:01,840 --> 00:24:02,359 Speaker 2: You look good. 423 00:24:03,480 --> 00:24:07,160 Speaker 1: The bitcoin having, yeah, of course, man, the. 424 00:24:07,160 --> 00:24:08,200 Speaker 2: Having is a huge deal. 425 00:24:09,040 --> 00:24:11,520 Speaker 12: So just to be clear, everyone is aware of the 426 00:24:11,560 --> 00:24:14,399 Speaker 12: fixed supply of bitcoin. There will only ever be twenty 427 00:24:14,400 --> 00:24:17,320 Speaker 12: one million, but not all twenty one million have been 428 00:24:17,440 --> 00:24:20,480 Speaker 12: issued to the world yet, and so bitcoin is on 429 00:24:20,560 --> 00:24:24,560 Speaker 12: a fixed issuance schedule. Satoshi programmed when he launched he 430 00:24:24,680 --> 00:24:27,480 Speaker 12: or she here they launched bitcoin on how those would 431 00:24:27,480 --> 00:24:28,359 Speaker 12: be issued out. 432 00:24:28,600 --> 00:24:29,679 Speaker 1: We're at about. 433 00:24:29,480 --> 00:24:32,840 Speaker 12: Nineteen million out of twenty one so far. In every 434 00:24:32,880 --> 00:24:35,719 Speaker 12: ten minutes, more and more get issued, and the having 435 00:24:35,800 --> 00:24:38,119 Speaker 12: is when that issue ince schedule gets cut in half. 436 00:24:38,280 --> 00:24:41,280 Speaker 12: So the supply, the forced sellers, those that pay money 437 00:24:41,320 --> 00:24:43,320 Speaker 12: to produce bitcoins, which then have to sell it to 438 00:24:43,320 --> 00:24:44,960 Speaker 12: pay for their costs, that's. 439 00:24:44,760 --> 00:24:45,439 Speaker 1: Going to be halved. 440 00:24:45,800 --> 00:24:48,280 Speaker 12: And so the really simple way to think about it, 441 00:24:48,480 --> 00:24:51,800 Speaker 12: ed is if demand remains the same and the bitcoin 442 00:24:52,000 --> 00:24:54,960 Speaker 12: sold gets cut in half, should have an impact on 443 00:24:55,000 --> 00:24:57,200 Speaker 12: the price to the upside. So it's a big event 444 00:24:57,280 --> 00:24:58,720 Speaker 12: and we're all pretty excited about it. 445 00:24:59,520 --> 00:25:02,639 Speaker 2: Jack, have a healthy and robust debate here, but just 446 00:25:02,680 --> 00:25:06,000 Speaker 2: give me a moment to outline a counterpoints, because you've 447 00:25:06,040 --> 00:25:08,440 Speaker 2: been in the camp for a while, right that there 448 00:25:08,920 --> 00:25:11,119 Speaker 2: is only ever going to be twenty one million bitcoin 449 00:25:11,720 --> 00:25:14,280 Speaker 2: and so prices have to go up. That's kind of 450 00:25:14,320 --> 00:25:16,360 Speaker 2: the argument you've made, if you'll just give me that, 451 00:25:16,640 --> 00:25:19,879 Speaker 2: and you've talked about in the context of hyperinflation, don't 452 00:25:19,880 --> 00:25:23,399 Speaker 2: be holding dollars, But I would point out that the 453 00:25:23,440 --> 00:25:27,480 Speaker 2: market doesn't see further inflation, it doesn't see more inflation 454 00:25:27,560 --> 00:25:30,080 Speaker 2: to come. And if you'll allow me, if you look 455 00:25:30,119 --> 00:25:33,440 Speaker 2: at this morning's trading in terms of liquidity. I think 456 00:25:33,560 --> 00:25:36,440 Speaker 2: thirty to forty billion dollars worth of bitcoin was out 457 00:25:36,440 --> 00:25:40,359 Speaker 2: there in the market. So there are counterpoints to the 458 00:25:40,359 --> 00:25:45,400 Speaker 2: thesis that you've outlined. Is that the end of your point, 459 00:25:46,320 --> 00:25:48,600 Speaker 2: end of my point, Please proceed, Okay. 460 00:25:48,720 --> 00:25:51,880 Speaker 1: Yeah, I was trying to be played. I mean, let's 461 00:25:51,920 --> 00:25:52,680 Speaker 1: dumb it down. 462 00:25:52,760 --> 00:25:56,720 Speaker 12: The problem with central planning money, which is such a 463 00:25:56,800 --> 00:25:58,760 Speaker 12: core technology to society working. 464 00:25:58,920 --> 00:25:59,679 Speaker 1: Think about it, Ed. 465 00:26:00,200 --> 00:26:02,680 Speaker 12: You go to work every single day and you pour 466 00:26:02,760 --> 00:26:05,040 Speaker 12: your blood, sweat and tears all of the time you 467 00:26:05,040 --> 00:26:06,960 Speaker 12: spend on this planet in exchange for what. 468 00:26:08,400 --> 00:26:08,720 Speaker 1: Money. 469 00:26:09,680 --> 00:26:13,600 Speaker 12: So the central planning of money convolutes and complicates so 470 00:26:13,880 --> 00:26:15,480 Speaker 12: much of the inner workings of society. 471 00:26:15,560 --> 00:26:18,399 Speaker 1: Let's go back to basics. Our government is in debt, right, 472 00:26:18,520 --> 00:26:21,400 Speaker 1: yes or no? The US government? That is what all governments. Right. 473 00:26:21,640 --> 00:26:23,399 Speaker 1: Our government's in debt. Okay. 474 00:26:23,560 --> 00:26:26,639 Speaker 12: Traditionally, Ed, if I owed you twenty bucks, I'd have 475 00:26:26,720 --> 00:26:29,880 Speaker 12: two options. I'd one have to default on that and say, 476 00:26:29,960 --> 00:26:31,960 Speaker 12: you know what, Ed, I hope you still consider me 477 00:26:32,000 --> 00:26:33,520 Speaker 12: a good friend, but I'm not going to make hole 478 00:26:33,600 --> 00:26:34,520 Speaker 12: on that twenty dollars. 479 00:26:34,840 --> 00:26:36,440 Speaker 1: The other is I could pay it back. 480 00:26:36,640 --> 00:26:39,960 Speaker 12: Those are classically the two options that anyone in debt 481 00:26:40,000 --> 00:26:44,639 Speaker 12: has right now. The government, because they centrally plan and 482 00:26:44,680 --> 00:26:48,439 Speaker 12: control our currency, unfortunately, has a third and that's that 483 00:26:48,480 --> 00:26:52,200 Speaker 12: they can print more money, devalue the debt that they 484 00:26:52,240 --> 00:26:55,520 Speaker 12: have and that they owe, and allocate more capital to themselves. 485 00:26:55,680 --> 00:26:59,600 Speaker 12: So our government can't default. The US, the United States 486 00:26:59,600 --> 00:27:03,399 Speaker 12: of amer cannot default on debt. It would collapse the 487 00:27:03,520 --> 00:27:06,640 Speaker 12: entire planet. We also cannot afford to pay it back. 488 00:27:07,080 --> 00:27:08,960 Speaker 12: So if you just like listen, I didn't even go 489 00:27:09,000 --> 00:27:11,720 Speaker 12: to college, brother, this is just one oh one basics 490 00:27:11,720 --> 00:27:14,399 Speaker 12: how the world works. If we can't default and we 491 00:27:14,480 --> 00:27:17,480 Speaker 12: can't pay it back, what's the only option that they 492 00:27:17,560 --> 00:27:19,560 Speaker 12: have to do, no matter what they sit and tell 493 00:27:19,560 --> 00:27:23,480 Speaker 12: you at the FED chair meetings and all of the economists. 494 00:27:22,920 --> 00:27:25,480 Speaker 1: They have to issue more dollars. 495 00:27:25,720 --> 00:27:27,639 Speaker 12: And so if there's going to be more pieces of 496 00:27:27,640 --> 00:27:32,280 Speaker 12: green paper, you want them competing for the most fixed thing. Right, 497 00:27:32,320 --> 00:27:34,800 Speaker 12: there's more dollars that are competing for a fixed amount 498 00:27:34,840 --> 00:27:37,159 Speaker 12: of bitcoin. And yes, real estate's going to go up 499 00:27:37,160 --> 00:27:40,199 Speaker 12: too because there's more dollars competing for real estate. But 500 00:27:40,359 --> 00:27:42,720 Speaker 12: they can make more real estate, they can find more gold, 501 00:27:42,760 --> 00:27:44,159 Speaker 12: they can't make any more bitcoins. 502 00:27:44,400 --> 00:27:46,639 Speaker 1: And that's just. I mean even a college dropout can 503 00:27:46,720 --> 00:27:47,240 Speaker 1: understand that. 504 00:27:47,359 --> 00:27:49,520 Speaker 2: My friend da let me jump in and again just 505 00:27:49,560 --> 00:27:52,320 Speaker 2: reistrate your The basic argument is that they are only 506 00:27:52,359 --> 00:27:54,720 Speaker 2: ever going to be twenty one million bitcoin and the 507 00:27:55,760 --> 00:27:58,159 Speaker 2: finality of that, what am I trying to say? The 508 00:27:58,800 --> 00:28:02,080 Speaker 2: supply constraint on that is what we'll provide up with momentum. 509 00:28:02,119 --> 00:28:04,040 Speaker 2: I have many questions for you. I think, put your 510 00:28:04,359 --> 00:28:07,480 Speaker 2: Strike CEO hot on and let's talk about payments. Give 511 00:28:07,520 --> 00:28:11,080 Speaker 2: me an update on the state of crypto payments. We've 512 00:28:11,080 --> 00:28:13,200 Speaker 2: got a lot of questions about this about real world 513 00:28:13,240 --> 00:28:17,080 Speaker 2: adoption because we kind of over the market mechanics of bitcoin. 514 00:28:17,080 --> 00:28:17,240 Speaker 6: Now. 515 00:28:17,240 --> 00:28:20,200 Speaker 2: I think, at this point, what are you saying out 516 00:28:20,240 --> 00:28:21,000 Speaker 2: there globally? 517 00:28:22,400 --> 00:28:26,840 Speaker 12: I think the biggest I don't know if it's tension, 518 00:28:27,119 --> 00:28:30,800 Speaker 12: the biggest story is stable coins for sure. Here's my 519 00:28:30,920 --> 00:28:36,680 Speaker 12: personal take. A Bitcoin is the only neutral value transfer. 520 00:28:36,280 --> 00:28:37,600 Speaker 1: Protocol for the world. 521 00:28:37,960 --> 00:28:40,800 Speaker 12: We view it at Strike as the single value transfer 522 00:28:40,840 --> 00:28:43,600 Speaker 12: protocol for planet Earth. Now that sounds like a lot 523 00:28:43,640 --> 00:28:47,160 Speaker 12: of gobblygook. What I actually mean by that is bitcoin 524 00:28:47,240 --> 00:28:50,560 Speaker 12: is the only physical digital instrument. So a stable coin 525 00:28:50,840 --> 00:28:53,400 Speaker 12: is just an IOU for a bank deposit. It's like 526 00:28:53,480 --> 00:28:57,000 Speaker 12: an innovation to AH but you have counterparty risk with 527 00:28:57,080 --> 00:29:00,560 Speaker 12: the issuer, with regulators, with where the bank posit is 528 00:29:00,600 --> 00:29:03,320 Speaker 12: held at that bank, what if they're fractional reserve. So 529 00:29:03,360 --> 00:29:06,800 Speaker 12: bitcoin's the only physical instrument on the Internet that we 530 00:29:06,880 --> 00:29:10,160 Speaker 12: can move globally, so we view it as the way. 531 00:29:10,400 --> 00:29:13,280 Speaker 12: It's like the TCPIP of value transfer to the web. 532 00:29:13,520 --> 00:29:16,520 Speaker 12: But the problem, I think is that consumers around the 533 00:29:16,520 --> 00:29:20,520 Speaker 12: world prefer stable coins because of their relative stable value 534 00:29:20,560 --> 00:29:23,640 Speaker 12: to bitcoin. So when you have emerging markets like in Africa, 535 00:29:24,160 --> 00:29:27,200 Speaker 12: like Latin America, all through Latin America. 536 00:29:26,720 --> 00:29:29,320 Speaker 1: They find it difficult to stomach the volatility. 537 00:29:29,320 --> 00:29:31,520 Speaker 12: If you're living paycheck to paycheck, bitcoin can be an 538 00:29:31,560 --> 00:29:34,440 Speaker 12: intimidating asset. So where we are spending a lot of 539 00:29:34,480 --> 00:29:37,400 Speaker 12: our time is trying to meet the consumer demand of 540 00:29:37,560 --> 00:29:41,160 Speaker 12: Africa of Latin America, where bitcoin the technology is just 541 00:29:41,440 --> 00:29:45,080 Speaker 12: so far ahead of everything else, but the dollar value 542 00:29:45,520 --> 00:29:49,280 Speaker 12: is valuable to consumers in these regions. So I think 543 00:29:49,320 --> 00:29:51,640 Speaker 12: that's going to be a lot of the payments innovation 544 00:29:51,760 --> 00:29:53,880 Speaker 12: over the next few years is the marrying of those 545 00:29:53,920 --> 00:29:54,320 Speaker 12: two counts. 546 00:29:54,480 --> 00:29:56,920 Speaker 2: Well, just a quick follow up on that. So geography 547 00:29:57,000 --> 00:29:58,600 Speaker 2: was one of the other questions that we got so 548 00:29:58,640 --> 00:30:01,560 Speaker 2: for example, you know, how's the l Salvador HQ going 549 00:30:03,560 --> 00:30:05,880 Speaker 2: as one example, But you mentioned I think Africa in 550 00:30:06,000 --> 00:30:08,280 Speaker 2: Latin America, do you kind of have we only have 551 00:30:08,320 --> 00:30:10,200 Speaker 2: a few second chatter. Do you have a specific list 552 00:30:10,240 --> 00:30:13,160 Speaker 2: of countries to which you've actually expanded service. 553 00:30:14,040 --> 00:30:15,840 Speaker 1: Yeah, we just launched Strike Africa. 554 00:30:16,200 --> 00:30:20,080 Speaker 12: I think Listen, every single person on the planet is 555 00:30:20,120 --> 00:30:22,520 Speaker 12: dealing with Fiata basement is dealing with What I explain 556 00:30:22,640 --> 00:30:24,520 Speaker 12: is the fact that their government has to issue more 557 00:30:24,520 --> 00:30:25,200 Speaker 12: of their currency. 558 00:30:25,280 --> 00:30:26,880 Speaker 1: So access to bitcoin is paramount. 559 00:30:26,960 --> 00:30:28,720 Speaker 12: Is the killer use case because it's the only thing 560 00:30:28,920 --> 00:30:30,760 Speaker 12: that no one on the planet can create more of. 561 00:30:31,280 --> 00:30:35,320 Speaker 12: And then for payments, we think it's fascinating to disrupt 562 00:30:35,320 --> 00:30:37,000 Speaker 12: cross border payments. I mean, the fact that I can 563 00:30:37,040 --> 00:30:40,040 Speaker 12: move something physical like a water bottle or my iPhone 564 00:30:40,080 --> 00:30:43,040 Speaker 12: from here to Nigeria but it's a bitcoin is crazy, man. 565 00:30:43,080 --> 00:30:46,640 Speaker 12: The cost should really come down there. So Africa we've launched. 566 00:30:46,720 --> 00:30:49,280 Speaker 12: Europe is up next, Latin America after that. We're on 567 00:30:49,320 --> 00:30:52,840 Speaker 12: a war path to bring a bitcoin focused consumer experience 568 00:30:52,880 --> 00:30:55,640 Speaker 12: to the world no alt coins, and we're doing well. 569 00:30:55,680 --> 00:30:57,000 Speaker 1: I'm curious to see where this goes. 570 00:30:58,080 --> 00:31:00,320 Speaker 2: Jack, I actually have a question for you in real 571 00:31:00,360 --> 00:31:03,040 Speaker 2: time through the ib on. The Bloomberg terminon is going 572 00:31:03,080 --> 00:31:05,760 Speaker 2: to read it to you, Jack. How can the blockchain 573 00:31:06,000 --> 00:31:10,280 Speaker 2: sustain itself if the miners who are validating the transaction 574 00:31:11,000 --> 00:31:15,040 Speaker 2: mine less and less new coins. That's a direct question 575 00:31:15,120 --> 00:31:16,160 Speaker 2: to you for more audience. 576 00:31:17,120 --> 00:31:21,240 Speaker 12: Yeah, So the miners get paid fees, so every single 577 00:31:21,240 --> 00:31:24,560 Speaker 12: transaction is a fee associated with it, So miners in 578 00:31:24,640 --> 00:31:27,720 Speaker 12: theory collect revenue. There's been blocks as of recent where 579 00:31:27,760 --> 00:31:30,440 Speaker 12: the fees actually are more than the issuance reward. 580 00:31:31,320 --> 00:31:33,640 Speaker 1: But the bitcoin protocol also auto. 581 00:31:33,400 --> 00:31:38,640 Speaker 12: Adjusts itself, and the difficulty required to mind blocks changes 582 00:31:39,160 --> 00:31:40,600 Speaker 12: by how many people are money as well. 583 00:31:40,680 --> 00:31:43,640 Speaker 1: So the protocol is built to sustain itself. 584 00:31:43,640 --> 00:31:46,320 Speaker 12: And this is also a problem that is way out 585 00:31:46,320 --> 00:31:49,320 Speaker 12: in the future. I think sometimes when people get stressed out, listen, 586 00:31:49,440 --> 00:31:51,680 Speaker 12: the bitcoin price is outpacing the havings. 587 00:31:51,760 --> 00:31:51,880 Speaker 2: Right. 588 00:31:51,920 --> 00:31:54,960 Speaker 12: Bitcoin is going up multiples more than the issuance is 589 00:31:55,000 --> 00:31:57,480 Speaker 12: being had. Bitcoin's already up over one hundred percent in 590 00:31:57,520 --> 00:31:58,440 Speaker 12: the last calendar year. 591 00:31:58,520 --> 00:31:58,680 Speaker 2: Right. 592 00:31:59,240 --> 00:32:03,520 Speaker 12: So I think that this is an anxiety inducing problem 593 00:32:03,520 --> 00:32:05,760 Speaker 12: that we may face in twenty thirty, forty fifty, one 594 00:32:05,840 --> 00:32:10,440 Speaker 12: hundred years. But the answer is Sutoshi's intention was transaction 595 00:32:10,520 --> 00:32:14,120 Speaker 12: fuse is that people pay for block space, pay to 596 00:32:14,160 --> 00:32:17,719 Speaker 12: get transaction finality and that should sustain the network. 597 00:32:17,760 --> 00:32:23,120 Speaker 2: Plenty Stroke CEO Jack Mallis, thank you for fielding my questions. 598 00:32:23,160 --> 00:32:26,200 Speaker 2: Thank you for fielding audiences questions. We'll get you on 599 00:32:26,440 --> 00:32:28,040 Speaker 2: in the near future. Now coming up on the show, 600 00:32:28,080 --> 00:32:33,320 Speaker 2: Frontline Ventures wants to accelerate transatlantic expansion for B to 601 00:32:33,360 --> 00:32:36,520 Speaker 2: B software companies in both the US and Europe with 602 00:32:36,640 --> 00:32:38,240 Speaker 2: a brand new fund. We're going to talk more about 603 00:32:38,240 --> 00:32:42,960 Speaker 2: that next for Frontline Ventures partner Zoe Chambers. Stick with us. 604 00:32:43,080 --> 00:32:59,360 Speaker 2: This is Blion by Technology. Okay. Frontline Ventures recently raised 605 00:32:59,360 --> 00:33:01,960 Speaker 2: two hundred million dollars across two new funds with a 606 00:33:02,000 --> 00:33:06,440 Speaker 2: goal of accelerating transatlantic expansion for B to B software 607 00:33:06,480 --> 00:33:09,360 Speaker 2: companies that's in both the US and Europe. I want 608 00:33:09,360 --> 00:33:12,280 Speaker 2: to bring in Frontline Ventures partner Zoe Chambers for today's 609 00:33:12,680 --> 00:33:17,360 Speaker 2: VC Spotlight. So what qualifies then as a transatlantic B 610 00:33:17,480 --> 00:33:20,959 Speaker 2: to B software company? What would a startup or founder 611 00:33:21,000 --> 00:33:23,840 Speaker 2: have to offer you to get a check out of 612 00:33:23,880 --> 00:33:24,479 Speaker 2: those funds? 613 00:33:25,640 --> 00:33:25,800 Speaker 9: Well? 614 00:33:25,800 --> 00:33:27,600 Speaker 13: Absolutely, First of all, thanks so much for having me 615 00:33:27,640 --> 00:33:30,200 Speaker 13: this morning, ed As you mentioned my name, Zoe Chambers 616 00:33:30,240 --> 00:33:33,080 Speaker 13: and I'm one of the partners here at Frontline for Ventures. 617 00:33:33,080 --> 00:33:37,160 Speaker 13: So we have two complimentary strategies. We have a European 618 00:33:37,240 --> 00:33:40,160 Speaker 13: early stage fund that looks to be the first institutional 619 00:33:40,240 --> 00:33:43,880 Speaker 13: check into startups that really are globally ambitious and look 620 00:33:43,960 --> 00:33:46,880 Speaker 13: to want to accelerate their market entry into the States. 621 00:33:47,200 --> 00:33:49,560 Speaker 13: And then we have a growth stage fund which invests 622 00:33:49,800 --> 00:33:53,880 Speaker 13: Series B to D and looks at helping those companies 623 00:33:54,000 --> 00:33:56,760 Speaker 13: enter into the European market. And we have done that 624 00:33:57,080 --> 00:33:59,760 Speaker 13: so far with companies that include Mosaic mL which is 625 00:33:59,840 --> 00:34:05,200 Speaker 13: now part of Data Bricks, Van to Lattice, Attentive, and Navan. 626 00:34:06,840 --> 00:34:10,360 Speaker 2: I find that really interesting. Does it reflect a deficit 627 00:34:10,560 --> 00:34:15,680 Speaker 2: of talent or a deficit of companies operationalized in one 628 00:34:15,840 --> 00:34:19,279 Speaker 2: market versus another, or is it just the opposite that 629 00:34:19,800 --> 00:34:22,080 Speaker 2: if you want to grow a really good software or 630 00:34:22,120 --> 00:34:25,000 Speaker 2: SaaS company, you kind of need to be in those markets. 631 00:34:26,040 --> 00:34:26,799 Speaker 2: That's exactly it. 632 00:34:26,680 --> 00:34:27,440 Speaker 10: It's that point. 633 00:34:27,520 --> 00:34:32,879 Speaker 13: So fundamentally, seventy percent of global software spend comes from 634 00:34:32,920 --> 00:34:35,080 Speaker 13: the US in Europe, and in fact, seventy percent of 635 00:34:35,160 --> 00:34:38,399 Speaker 13: benure capital dollars is also in those two markets. So 636 00:34:38,480 --> 00:34:41,279 Speaker 13: our whole fund strategy centers around the core belief that 637 00:34:41,560 --> 00:34:44,320 Speaker 13: you have to access and win in both the US 638 00:34:44,360 --> 00:34:46,839 Speaker 13: and Europe if you truly want to be, you know, 639 00:34:46,880 --> 00:34:49,080 Speaker 13: a category leader and go on to IPO. 640 00:34:49,440 --> 00:34:50,800 Speaker 10: So it's more about the. 641 00:34:50,680 --> 00:34:53,880 Speaker 13: Most talented want to have a foothold in both of 642 00:34:53,880 --> 00:34:56,680 Speaker 13: those geographies because they are just so important. 643 00:34:58,719 --> 00:35:03,759 Speaker 2: So when Frontline is looking for this talent that the 644 00:35:03,800 --> 00:35:06,839 Speaker 2: founders tell me about the firm and how it's set up, 645 00:35:06,880 --> 00:35:09,799 Speaker 2: do you have people transatlantic as well in terms of 646 00:35:09,840 --> 00:35:10,440 Speaker 2: your offices. 647 00:35:11,440 --> 00:35:12,279 Speaker 10: We absolutely do. 648 00:35:12,400 --> 00:35:15,680 Speaker 13: So we have folks in San Francisco, in New York, 649 00:35:16,200 --> 00:35:20,080 Speaker 13: in Dublin, and in London, and that kind of follows 650 00:35:20,239 --> 00:35:24,200 Speaker 13: not only kind of where talent is, but equally the 651 00:35:24,760 --> 00:35:27,800 Speaker 13: key for landing spots when you are a US company 652 00:35:27,840 --> 00:35:32,399 Speaker 13: who expands into Europe tends to be London, Dublin, Amsterdam 653 00:35:32,520 --> 00:35:36,640 Speaker 13: and Berlin and then the other way around. You know, 654 00:35:36,760 --> 00:35:41,000 Speaker 13: San Francisco, New York absolutely too, very strong, mature ecosystems, 655 00:35:41,040 --> 00:35:42,759 Speaker 13: and so of course we have partners. 656 00:35:42,400 --> 00:35:46,080 Speaker 2: On the ground there Frondline Ventures partner Zori Chambers. Two 657 00:35:46,239 --> 00:35:50,360 Speaker 2: new funds two hundred million dollars going after the transatlantic startup. 658 00:35:50,440 --> 00:36:01,440 Speaker 2: Thank you for joining us, appreciate it so Instagram users 659 00:36:01,520 --> 00:36:04,880 Speaker 2: are taking to rival platforms, for example x to voice 660 00:36:04,960 --> 00:36:09,120 Speaker 2: some outrage. The parent company Meta quietly rolled out a 661 00:36:09,160 --> 00:36:12,840 Speaker 2: feature that limits political content by default when it comes 662 00:36:12,880 --> 00:36:15,759 Speaker 2: to suggested posts. I want to bring in Bloomberg's Kaylee 663 00:36:15,840 --> 00:36:19,680 Speaker 2: lines out of DC. This is an interesting one. It 664 00:36:19,800 --> 00:36:22,920 Speaker 2: is like user protests just explain the story to me. 665 00:36:23,880 --> 00:36:28,240 Speaker 14: Well, this is interesting ed because actually both Instagram and Threads, 666 00:36:28,280 --> 00:36:30,480 Speaker 14: of the two platforms here, had announced that these changes 667 00:36:30,480 --> 00:36:33,760 Speaker 14: were coming in a blog post back in February, essentially 668 00:36:33,760 --> 00:36:36,560 Speaker 14: saying they were no longer going to be proactively recommending 669 00:36:36,760 --> 00:36:39,239 Speaker 14: political content. They said at the time that if you 670 00:36:39,360 --> 00:36:42,440 Speaker 14: decide to follow accounts that post political conduct, they don't 671 00:36:42,480 --> 00:36:44,120 Speaker 14: want to get between you and their posts. But they 672 00:36:44,120 --> 00:36:47,080 Speaker 14: also don't want to proactively recommend content from accounts that 673 00:36:47,160 --> 00:36:49,200 Speaker 14: you don't follow. So this isn't about who you follow, 674 00:36:49,280 --> 00:36:51,600 Speaker 14: it's about who you don't and that not coming up 675 00:36:51,640 --> 00:36:54,800 Speaker 14: in your explore page, explore page for example, or reels 676 00:36:54,880 --> 00:36:56,920 Speaker 14: when it relates to political content. So now it's the 677 00:36:57,000 --> 00:36:59,680 Speaker 14: default setting that you won't see that political material in 678 00:36:59,760 --> 00:37:02,880 Speaker 14: less you select to. In response, some have said maybe 679 00:37:02,880 --> 00:37:06,320 Speaker 14: this is a way to reduce misinformation or inflammatory content 680 00:37:06,400 --> 00:37:09,319 Speaker 14: being circulated in an election year, but others are saying 681 00:37:09,320 --> 00:37:12,239 Speaker 14: that they could limit political discourse in an election year. 682 00:37:12,239 --> 00:37:14,400 Speaker 14: There is also a lot of concern about how exactly 683 00:37:14,440 --> 00:37:18,319 Speaker 14: the companies are defining political content, what exactly that means, 684 00:37:18,320 --> 00:37:20,760 Speaker 14: and how they're categorizing it. In that same blog posts 685 00:37:20,920 --> 00:37:23,080 Speaker 14: Instagram put out last month, they suggested it could be 686 00:37:23,120 --> 00:37:26,480 Speaker 14: potentially related to things like laws, elections. 687 00:37:26,239 --> 00:37:27,360 Speaker 1: Or social topics. 688 00:37:27,400 --> 00:37:30,880 Speaker 14: Obviously that's a pretty broad basket, and so in response, 689 00:37:30,960 --> 00:37:33,480 Speaker 14: you're getting users on all ends of the political spectrum 690 00:37:33,480 --> 00:37:35,960 Speaker 14: that seem to be unhappy with this. Right landing users 691 00:37:35,960 --> 00:37:38,839 Speaker 14: have suggested this could be yet another example they see 692 00:37:38,880 --> 00:37:42,359 Speaker 14: of efforts to censor conservative speech in particular, but even 693 00:37:42,360 --> 00:37:44,040 Speaker 14: some on the right say they see this as an 694 00:37:44,040 --> 00:37:47,759 Speaker 14: attempt by the platform to limit pro Palestinian conflict. So 695 00:37:47,840 --> 00:37:51,600 Speaker 14: it's just another example of the difficulty between policing content, 696 00:37:51,680 --> 00:37:55,000 Speaker 14: making sure misinformation doesn't circulate, but also abiding by First 697 00:37:55,040 --> 00:37:58,320 Speaker 14: Amendment rights granted with the right to free speech. 698 00:37:59,239 --> 00:38:02,480 Speaker 2: It's an interesting case study in the election year because Meta, 699 00:38:02,560 --> 00:38:06,799 Speaker 2: the parent of Facebook, Instagram and Threads, is kind of 700 00:38:06,800 --> 00:38:09,960 Speaker 2: being proactive saying well, here's a new policy, but the 701 00:38:10,080 --> 00:38:13,520 Speaker 2: user base doesn't like it. Has the company updated its 702 00:38:13,520 --> 00:38:17,359 Speaker 2: messaging or said anything more recently that suggests they might 703 00:38:17,800 --> 00:38:20,800 Speaker 2: make a change, not that I have seen ed. 704 00:38:21,000 --> 00:38:23,279 Speaker 14: Now it becomes a question of whether a change could 705 00:38:23,320 --> 00:38:25,719 Speaker 14: be enforced in terms of policing this content. We have 706 00:38:25,800 --> 00:38:28,480 Speaker 14: seen just last week, for example, the Supreme Court hearing 707 00:38:28,600 --> 00:38:32,960 Speaker 14: arguments in the Murphy versus Missouri case, essentially a lawsuit 708 00:38:32,960 --> 00:38:36,200 Speaker 14: that was brought against the Biden administration arguing that the 709 00:38:36,239 --> 00:38:39,279 Speaker 14: Biden agencies, like the CDC for example, went too far 710 00:38:39,360 --> 00:38:42,239 Speaker 14: in their efforts to pressure platforms, including what was then 711 00:38:42,280 --> 00:38:47,600 Speaker 14: Twitter even Meta, to take down information related to the 712 00:38:47,640 --> 00:38:50,280 Speaker 14: twenty twenty election, for example, the validity of the results, 713 00:38:50,360 --> 00:38:53,239 Speaker 14: the efficacy of COVID nineteen vaccines. We're still going to 714 00:38:53,239 --> 00:38:55,239 Speaker 14: away of ruling from the Supreme Court in that case, 715 00:38:55,280 --> 00:38:58,200 Speaker 14: but it could have actually pretty sweeping ramifications for the 716 00:38:58,200 --> 00:39:00,960 Speaker 14: way that these social media platforms police their content. 717 00:39:01,000 --> 00:39:02,719 Speaker 5: So it's a question of whether laws could. 718 00:39:02,480 --> 00:39:05,360 Speaker 14: Actually enforce any kind of change on the part of 719 00:39:05,360 --> 00:39:08,320 Speaker 14: these platforms, not just whether they'd left to change policy themselves. 720 00:39:09,120 --> 00:39:11,800 Speaker 2: All right, Bloomer's Kaylee lines out of DC really appreciate 721 00:39:11,800 --> 00:39:15,560 Speaker 2: the reporting. Let's talk markets again after last week's public listings. 722 00:39:15,600 --> 00:39:19,520 Speaker 2: Could the us IPO window finally be reopening like properly. 723 00:39:20,000 --> 00:39:23,319 Speaker 2: Next in line is Ibota, the consumer tech company which 724 00:39:23,320 --> 00:39:26,720 Speaker 2: offers cash back rewards on various purchases through the Ibota 725 00:39:26,800 --> 00:39:31,000 Speaker 2: Performance Network, mobile app and website. Guesses on the story 726 00:39:31,080 --> 00:39:35,200 Speaker 2: Bloombo's Katie ruth I, remember you guys reporting last week 727 00:39:35,239 --> 00:39:37,920 Speaker 2: about the banks involved in this one. Update me on 728 00:39:37,960 --> 00:39:38,919 Speaker 2: where this name's at. 729 00:39:40,320 --> 00:39:42,600 Speaker 15: That's right? So we had you know, scoop that they 730 00:39:42,600 --> 00:39:46,200 Speaker 15: had hired bankers late last year, and then last Friday 731 00:39:46,280 --> 00:39:51,400 Speaker 15: the filing came out that they revealed their financials indicating 732 00:39:51,440 --> 00:39:53,440 Speaker 15: that they planned to go public in the coming weeks. 733 00:39:54,920 --> 00:39:58,239 Speaker 2: Okay, so Ibota, am I saying that right? Ibota? I 734 00:39:58,280 --> 00:39:58,879 Speaker 2: think that's right. 735 00:39:58,960 --> 00:40:01,319 Speaker 15: Ibota, as I bought a thing. 736 00:40:01,400 --> 00:40:04,120 Speaker 2: That's what the company told me. Oh rather than Robot, 737 00:40:04,200 --> 00:40:06,480 Speaker 2: I bought a thing. Okay, tell me the basics of 738 00:40:06,520 --> 00:40:09,120 Speaker 2: the business, Like, is this one we're hyped about? Is 739 00:40:09,160 --> 00:40:10,480 Speaker 2: this an exciting tech name? 740 00:40:12,080 --> 00:40:15,040 Speaker 15: So it almost hails from the Groupon era, It's from 741 00:40:15,040 --> 00:40:18,200 Speaker 15: more than a decade ago. It's coupon related, although it 742 00:40:18,239 --> 00:40:22,080 Speaker 15: is different than Groupon, but you can get cash back 743 00:40:22,280 --> 00:40:26,160 Speaker 15: at you know, a lot of different retailers particularly groceries. 744 00:40:26,200 --> 00:40:29,400 Speaker 15: They have a large partnership with Walmart. Walmart is a 745 00:40:29,400 --> 00:40:34,560 Speaker 15: strategic investor here and so yeah, they help, you know, 746 00:40:35,239 --> 00:40:38,880 Speaker 15: users make money while shopping, or at least get a 747 00:40:38,920 --> 00:40:40,520 Speaker 15: portion of the money they're spending back. 748 00:40:41,600 --> 00:40:45,560 Speaker 2: Valued at one billion dollars Series D Round twenty nineteen. 749 00:40:45,680 --> 00:40:48,439 Speaker 2: Another IPO for us to be excited about. Blimber's Katie Ruth, 750 00:40:48,760 --> 00:40:51,279 Speaker 2: great reporting, Thank you very much. So that does it 751 00:40:51,320 --> 00:40:53,960 Speaker 2: for this edition of Bloomberg Technology. It was going to 752 00:40:53,960 --> 00:40:56,080 Speaker 2: be a slow Monday, and it became a very busy 753 00:40:56,160 --> 00:40:59,440 Speaker 2: news heavy Monday. Recap the show on the podcast. Wherever 754 00:40:59,480 --> 00:41:02,520 Speaker 2: you're getting your podcasts, we're publishing it to the Bloomberg 755 00:41:02,520 --> 00:41:05,200 Speaker 2: platforms like the Bloomberg Terminal on websites, but we're also 756 00:41:05,239 --> 00:41:08,480 Speaker 2: putting in podcasts on Apple Spotify, and iHeart why because 757 00:41:08,520 --> 00:41:11,040 Speaker 2: lots of people listen to podcasts on platforms like that, 758 00:41:11,480 --> 00:41:13,719 Speaker 2: and I know that Joe Rogan's up there, but Bloomberg 759 00:41:13,719 --> 00:41:17,120 Speaker 2: Technology it's a pretty good podcast too. This is a 760 00:41:17,120 --> 00:41:20,520 Speaker 2: short week. Remember it's a market's holiday at least in 761 00:41:20,560 --> 00:41:23,719 Speaker 2: the US. This Friday earnings has kind of been and gone, 762 00:41:23,800 --> 00:41:26,480 Speaker 2: so we're still continuing to follow what's going on in 763 00:41:26,520 --> 00:41:29,920 Speaker 2: the antitrust context. What's going on with crypto markets, in 764 00:41:29,960 --> 00:41:34,840 Speaker 2: particular Bitcoin from San Francisco because Carros out, this is 765 00:41:34,840 --> 00:41:40,360 Speaker 2: Bloomberg technology. Have a great day.