1 00:00:01,800 --> 00:00:07,120 Speaker 1: From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN. 2 00:00:07,440 --> 00:00:11,479 Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 3 00:00:26,360 --> 00:00:30,280 Speaker 2: Welcome to Bloomberg Technology. I'm Caroline Hyde live from New 4 00:00:30,360 --> 00:00:31,560 Speaker 2: York and. 5 00:00:31,560 --> 00:00:34,840 Speaker 3: I'm Ed Loudlow in San Francisco. This is Bloomberg Technology. 6 00:00:35,400 --> 00:00:35,919 Speaker 4: Coming up. 7 00:00:36,080 --> 00:00:38,720 Speaker 2: We are looking at hedge fund exposure to technology. 8 00:00:39,080 --> 00:00:40,479 Speaker 4: It's hitting a record high. 9 00:00:40,640 --> 00:00:43,479 Speaker 2: We get to the Outlook for Tech investing from Kristina 10 00:00:43,520 --> 00:00:45,680 Speaker 2: Clark Barclay's Plus. 11 00:00:45,680 --> 00:00:48,640 Speaker 3: We hear from YouTube CEO Neil Mohen on his plans 12 00:00:48,680 --> 00:00:54,400 Speaker 3: to make the video platform even bigger, and we sit 13 00:00:54,520 --> 00:00:54,880 Speaker 3: down with. 14 00:00:54,880 --> 00:00:57,680 Speaker 4: The CEO of Ring for her first broadcast. 15 00:00:57,200 --> 00:01:01,240 Speaker 2: Interview as a connected camera company gets a new mission statement. 16 00:01:01,680 --> 00:01:03,240 Speaker 4: But Ed first, we check in on. 17 00:01:03,200 --> 00:01:06,800 Speaker 2: These markets and we are struggling with a macropacked picture 18 00:01:06,959 --> 00:01:09,639 Speaker 2: right now. We've course seeing a wall of money coming 19 00:01:10,080 --> 00:01:12,319 Speaker 2: well from a supply side to the bond market. We 20 00:01:12,400 --> 00:01:14,480 Speaker 2: have a big auction for the seven year debt. We're 21 00:01:14,480 --> 00:01:17,880 Speaker 2: seeing forty four billion dollars. And remember auction appetite just 22 00:01:17,920 --> 00:01:19,320 Speaker 2: wasn't that great for the last. 23 00:01:19,160 --> 00:01:19,840 Speaker 4: Couple of days. 24 00:01:19,959 --> 00:01:22,040 Speaker 2: So we're seeing Nasdaq just being pulled down as yields 25 00:01:22,040 --> 00:01:24,319 Speaker 2: push higher, the sucks that sounder in Europe also down 26 00:01:24,319 --> 00:01:25,120 Speaker 2: by a percentage point. 27 00:01:25,120 --> 00:01:25,920 Speaker 4: It's notable though that. 28 00:01:26,000 --> 00:01:28,120 Speaker 2: Nasdaq is boiltcing off of its lows. We're off down 29 00:01:28,440 --> 00:01:30,080 Speaker 2: just three tenths of a percent. It's actually the best 30 00:01:30,080 --> 00:01:32,720 Speaker 2: performing major benchmark here in the United States. So there's 31 00:01:32,760 --> 00:01:35,280 Speaker 2: really other industry groups that runder pressure today. And as 32 00:01:35,319 --> 00:01:37,000 Speaker 2: they say that seven year yield just picking up some 33 00:01:37,040 --> 00:01:39,280 Speaker 2: five basis points four point six to two. We're seeing 34 00:01:39,280 --> 00:01:41,360 Speaker 2: the longer end sell off harder move on though, And 35 00:01:41,400 --> 00:01:43,080 Speaker 2: I want to give us the risk appetite a choice. 36 00:01:43,080 --> 00:01:46,080 Speaker 2: When it comes to the tech world, Crypto also under 37 00:01:46,080 --> 00:01:48,680 Speaker 2: pressure a little bit today. Bitcoin just to the downside, 38 00:01:48,720 --> 00:01:50,560 Speaker 2: but not by March only a percentage point that we're 39 00:01:50,600 --> 00:01:53,680 Speaker 2: sixty seven five hundred is currently where we trade. But look, 40 00:01:53,720 --> 00:01:55,920 Speaker 2: there are some cautious sentiment out there at the moment. 41 00:01:56,000 --> 00:01:56,840 Speaker 2: Ed what are you looking at them? 42 00:01:56,840 --> 00:01:59,000 Speaker 4: On the micro So I'm looking. 43 00:01:58,800 --> 00:02:02,600 Speaker 3: At the US listed share of BYD the ev maker. 44 00:02:03,000 --> 00:02:05,640 Speaker 3: It's actually a pretty big story coming out of China. 45 00:02:05,760 --> 00:02:09,760 Speaker 3: They have announced a hybrid drive train that is capable 46 00:02:09,800 --> 00:02:13,440 Speaker 3: of doing more than twelve hundred miles or two thousand 47 00:02:13,480 --> 00:02:18,040 Speaker 3: kilometers on a single charge or single fill of the tank. 48 00:02:18,080 --> 00:02:20,880 Speaker 3: It's a hybrid drive train, and it's really continued to 49 00:02:20,960 --> 00:02:24,240 Speaker 3: boost BYD's US listed shares. It's got a lot of 50 00:02:24,240 --> 00:02:27,359 Speaker 3: people talking on social media. Check out Bloombo's coverage out 51 00:02:27,360 --> 00:02:30,200 Speaker 3: of Hong Kong and learn more about what byd is doing. 52 00:02:30,440 --> 00:02:32,799 Speaker 3: The other big mover here in the United States is Apple. 53 00:02:32,840 --> 00:02:35,560 Speaker 3: Apple up more than a percentage point for most of 54 00:02:35,600 --> 00:02:39,880 Speaker 3: the session. WWDC invites went out yesterday, I got mine. 55 00:02:40,160 --> 00:02:42,960 Speaker 3: But the big news is also out of China. A 56 00:02:43,080 --> 00:02:46,440 Speaker 3: court in China has dismissed the case against Apple that 57 00:02:46,480 --> 00:02:49,800 Speaker 3: a consumer had brought on the issue of app store 58 00:02:49,880 --> 00:02:53,399 Speaker 3: fees and commissions, and in app fees and commissions. Later 59 00:02:53,400 --> 00:02:55,320 Speaker 3: in the program, we're going to go to Bloombo's Mark German. 60 00:02:55,600 --> 00:02:58,040 Speaker 3: It might sound like a familiar story because it's happening 61 00:02:58,080 --> 00:03:01,000 Speaker 3: here in the United States too, this time the China 62 00:03:01,080 --> 00:03:02,000 Speaker 3: side of that discussion. 63 00:03:02,080 --> 00:03:05,040 Speaker 2: Caroline, Yeah, and just all of this in a picture 64 00:03:05,120 --> 00:03:07,960 Speaker 2: of how big tech bohemos have been doing and performing 65 00:03:07,960 --> 00:03:09,600 Speaker 2: at the moment. We know Apple's been under pressure for 66 00:03:09,639 --> 00:03:12,600 Speaker 2: the last couple of months beginning of this year. Really, 67 00:03:12,639 --> 00:03:15,760 Speaker 2: but hedge Fund's positioning more broadly, the exposure to US 68 00:03:15,840 --> 00:03:18,440 Speaker 2: tech bohemos is we just had a new record high 69 00:03:18,480 --> 00:03:20,320 Speaker 2: and of course that's downto in video in many ways, 70 00:03:20,360 --> 00:03:22,040 Speaker 2: it's strong earnings report last week. 71 00:03:22,240 --> 00:03:24,120 Speaker 4: It's all according to gorm Sexs Prime brokerage. 72 00:03:24,160 --> 00:03:26,280 Speaker 2: Their report is also saying that the so called Magnificent 73 00:03:26,320 --> 00:03:28,880 Speaker 2: seven is now accounting close to twenty one percent of 74 00:03:28,919 --> 00:03:31,960 Speaker 2: Hedge Fund's total net exposure to US single stocks. 75 00:03:32,160 --> 00:03:33,760 Speaker 4: We want to get a sentiment check on. 76 00:03:34,040 --> 00:03:37,600 Speaker 2: Big tech, on allocation and on companies going public. Kristin 77 00:03:37,680 --> 00:03:39,760 Speaker 2: Roth de Clark is with US Global head of Technology 78 00:03:39,800 --> 00:03:43,640 Speaker 2: Investment Banking at Barclay's, and you have so much wealth 79 00:03:43,680 --> 00:03:46,680 Speaker 2: of experience and expertise within the investment banking market within 80 00:03:46,760 --> 00:03:50,360 Speaker 2: technology in particular focus. You look at companies looking and 81 00:03:50,440 --> 00:03:53,360 Speaker 2: I in going public. But what is ultimately the sentiment 82 00:03:53,520 --> 00:03:56,480 Speaker 2: of access to growth companies in the US right now? 83 00:03:56,800 --> 00:03:59,720 Speaker 5: Yeah, Look, there's been a real deretha of opportunity to 84 00:03:59,760 --> 00:04:02,520 Speaker 5: invent in growth tech in the public markets. If you 85 00:04:02,600 --> 00:04:05,760 Speaker 5: look just at the five hundred or so companies tech 86 00:04:05,760 --> 00:04:08,280 Speaker 5: companies that are public right now that are two billion 87 00:04:08,280 --> 00:04:11,840 Speaker 5: dollar market cap or more, there are only less than 88 00:04:11,880 --> 00:04:14,280 Speaker 5: thirty that are growing that have grown thirty percent in 89 00:04:14,280 --> 00:04:16,839 Speaker 5: the last year, and so the opportunity to invest in 90 00:04:16,880 --> 00:04:20,560 Speaker 5: growth isn't really there necessarily in the public market. Their 91 00:04:20,600 --> 00:04:24,159 Speaker 5: bid for IPOs is there from the investor side, but 92 00:04:24,240 --> 00:04:29,120 Speaker 5: we haven't seen that translate into much activity this year, 93 00:04:29,400 --> 00:04:33,120 Speaker 5: partially because of the rate environment and investors' corporates are 94 00:04:33,120 --> 00:04:38,080 Speaker 5: looking more to twenty twenty five as a year of optimism, 95 00:04:38,120 --> 00:04:40,159 Speaker 5: I think in the new issue market. 96 00:04:39,920 --> 00:04:42,480 Speaker 2: And we add that context of the day with yields 97 00:04:42,560 --> 00:04:45,240 Speaker 2: just pushing higher for longer, whether it's in Europe as well. 98 00:04:45,279 --> 00:04:48,640 Speaker 2: We see German bond yields pushing higher as it looks 99 00:04:48,720 --> 00:04:51,680 Speaker 2: like inflation is hard to curtail. But is it just 100 00:04:51,800 --> 00:04:54,960 Speaker 2: the rate environment? Is there also element of political issues? 101 00:04:55,040 --> 00:04:56,800 Speaker 2: Is that why twenty twenty five is going to really 102 00:04:56,800 --> 00:04:57,479 Speaker 2: be the year to come? 103 00:04:57,640 --> 00:04:57,839 Speaker 6: Yeah? 104 00:04:57,839 --> 00:05:00,279 Speaker 5: I think at this point a lot of issuers are saying, 105 00:05:00,400 --> 00:05:03,279 Speaker 5: you know, twenty twenty five will get through the election cycles, 106 00:05:03,600 --> 00:05:06,240 Speaker 5: will get you to a place where we hopefully start 107 00:05:06,279 --> 00:05:09,240 Speaker 5: to see rates come back down, so to kind of 108 00:05:09,480 --> 00:05:12,200 Speaker 5: there are some issuers coming out in twenty twenty four 109 00:05:12,320 --> 00:05:15,279 Speaker 5: and certainly getting a lot of attention from investors, but 110 00:05:15,440 --> 00:05:18,600 Speaker 5: there's more optimism I think in twenty twenty five, and 111 00:05:18,640 --> 00:05:22,160 Speaker 5: that's true for both growth companies but also super profitable 112 00:05:22,200 --> 00:05:25,280 Speaker 5: businesses Inside private equity, A lot of the private equity 113 00:05:25,320 --> 00:05:29,320 Speaker 5: firms are opting to do private minority stake sales to 114 00:05:29,800 --> 00:05:32,960 Speaker 5: establish marks and get a little bit of liquidity instead 115 00:05:32,960 --> 00:05:34,279 Speaker 5: of going to the IPO market. 116 00:05:34,279 --> 00:05:37,520 Speaker 6: This year, christin good morning. Hello. 117 00:05:38,360 --> 00:05:40,640 Speaker 3: I hear from a lot of founders, a lot of CEOs, 118 00:05:40,640 --> 00:05:42,560 Speaker 3: a lot of people right now that are much more 119 00:05:42,600 --> 00:05:46,200 Speaker 3: open minded to doing some M and A or even 120 00:05:46,600 --> 00:05:47,520 Speaker 3: going private. 121 00:05:47,760 --> 00:05:48,400 Speaker 6: Why is that. 122 00:05:49,160 --> 00:05:54,320 Speaker 5: Yeah, take private activities increased significantly this year. It's up 123 00:05:54,320 --> 00:05:59,200 Speaker 5: fifty percent in the tech industry from last year. Part 124 00:05:59,200 --> 00:06:02,520 Speaker 5: of that is is an acceptance of kind of where 125 00:06:02,560 --> 00:06:05,320 Speaker 5: we are from a valuation standpoint, But the other part 126 00:06:05,480 --> 00:06:08,640 Speaker 5: is on the financing side. The last couple of years, 127 00:06:08,640 --> 00:06:13,839 Speaker 5: the financing for LBOs have been driven by the direct 128 00:06:13,920 --> 00:06:16,520 Speaker 5: lenders in the private credit market. We're now starting to 129 00:06:16,560 --> 00:06:19,960 Speaker 5: see some of the more traditional funding sources in the 130 00:06:20,000 --> 00:06:24,120 Speaker 5: broadly syndicated market available as well. 131 00:06:24,480 --> 00:06:28,600 Speaker 3: Convertible issuance is interesting, take my word for it, it's interesting. 132 00:06:29,320 --> 00:06:33,480 Speaker 3: One case study out this morning is Lenovo doing an 133 00:06:33,560 --> 00:06:37,240 Speaker 3: arrangement with Saudi Arabia through one of its investment firms 134 00:06:38,000 --> 00:06:39,400 Speaker 3: on very favorable terms. 135 00:06:39,400 --> 00:06:40,840 Speaker 6: But it's also kind of a quid pro. 136 00:06:40,800 --> 00:06:43,520 Speaker 3: Quo right where there's the financing side of it that 137 00:06:43,640 --> 00:06:46,760 Speaker 3: Lenovo has to set up an R and D facility 138 00:06:46,800 --> 00:06:47,599 Speaker 3: in that country. 139 00:06:48,240 --> 00:06:49,080 Speaker 6: I've heard it elsewhere. 140 00:06:49,080 --> 00:06:51,279 Speaker 3: In fact, I've heard of shareholders selling out of the 141 00:06:51,360 --> 00:06:54,920 Speaker 3: stock buying up convertible notes in the same name. 142 00:06:55,200 --> 00:06:56,680 Speaker 6: What are you seeing in that market? 143 00:06:56,760 --> 00:07:00,480 Speaker 5: Well, the convertible market I think will be pretty active 144 00:07:00,520 --> 00:07:03,240 Speaker 5: this year. There are a couple of interesting things that 145 00:07:03,320 --> 00:07:07,040 Speaker 5: have changed with this higher for longer sentiment. One in 146 00:07:07,080 --> 00:07:12,760 Speaker 5: particular is that we're now seeing issuers refinance floating rate 147 00:07:12,840 --> 00:07:16,520 Speaker 5: debt with convertibles and they're saving up to fifty percent 148 00:07:16,600 --> 00:07:20,440 Speaker 5: in interest expense with premiums that are one hundred percent, 149 00:07:20,680 --> 00:07:22,920 Speaker 5: you know, So it's it makes a lot of sense. 150 00:07:22,960 --> 00:07:24,560 Speaker 4: For some of these large cap issuers. 151 00:07:24,560 --> 00:07:27,040 Speaker 5: The other thing we're seeing in the convertible market is 152 00:07:27,280 --> 00:07:31,440 Speaker 5: large cap issuers doing a convert to repurchase shares, and 153 00:07:31,520 --> 00:07:36,800 Speaker 5: so I think that the convert activity will only increase 154 00:07:36,920 --> 00:07:39,200 Speaker 5: meaningfully this year, especially in this environment. 155 00:07:39,840 --> 00:07:43,000 Speaker 2: Isn't it interesting that, ultimately, at a time where markets 156 00:07:43,040 --> 00:07:44,880 Speaker 2: go from record high to record high there's less and 157 00:07:44,920 --> 00:07:47,440 Speaker 2: less access to getting into the public market, and so 158 00:07:47,560 --> 00:07:49,480 Speaker 2: much of the enthusiasm we talk about on a daily 159 00:07:49,480 --> 00:07:52,120 Speaker 2: basis is in the private markets. There's also a lot 160 00:07:52,120 --> 00:07:54,520 Speaker 2: of talk around M and A and I'm interested as 161 00:07:54,520 --> 00:07:56,320 Speaker 2: to what you're anticipating there from. 162 00:07:56,320 --> 00:07:59,080 Speaker 4: Even fewer publicly traded companies going forward. 163 00:07:59,280 --> 00:08:01,400 Speaker 5: Yeah, so the take privates we've talked about, I think 164 00:08:01,440 --> 00:08:04,680 Speaker 5: that we've also seen an increase in strategic activity in 165 00:08:04,720 --> 00:08:07,280 Speaker 5: a meaningful way, and we'll continue to see that throughout 166 00:08:07,320 --> 00:08:10,400 Speaker 5: the balance of the year. And then some of the 167 00:08:10,680 --> 00:08:13,120 Speaker 5: smaller M and A that's happening tends to be a 168 00:08:13,120 --> 00:08:17,400 Speaker 5: little you know, some of these early stage AI technology businesses, 169 00:08:17,640 --> 00:08:20,280 Speaker 5: but they're scaling very rapidly, so that could over the 170 00:08:20,320 --> 00:08:24,520 Speaker 5: next twelve, eighteen, twenty four months mean much larger scale 171 00:08:24,760 --> 00:08:28,840 Speaker 5: M and A and adding to this already massive IPO backlog. 172 00:08:30,200 --> 00:08:33,080 Speaker 3: Kristen, for all of the growth stage technology companies out 173 00:08:33,120 --> 00:08:34,880 Speaker 3: there that are watching the show right now, be it 174 00:08:34,880 --> 00:08:39,000 Speaker 3: the founders or staff, what's a good reason to go public? 175 00:08:39,480 --> 00:08:42,400 Speaker 3: What is a good motivation to list your company? 176 00:08:42,640 --> 00:08:46,319 Speaker 5: Well, the biggest reason right now the companies are opting 177 00:08:46,320 --> 00:08:49,400 Speaker 5: to go public tends to be employee liquidity, you know, 178 00:08:49,480 --> 00:08:52,800 Speaker 5: being private for a number of years, giving their employees 179 00:08:52,800 --> 00:08:57,079 Speaker 5: an opportunity to start to find wealth in a publicly 180 00:08:57,120 --> 00:09:02,040 Speaker 5: traded stock, or to validate a technology or the staying 181 00:09:02,120 --> 00:09:04,400 Speaker 5: power of a private company. Some companies opt to go 182 00:09:04,480 --> 00:09:06,600 Speaker 5: public because their customers are worried they're not going to 183 00:09:06,600 --> 00:09:08,360 Speaker 5: be around, are not going to have long term funding, 184 00:09:08,800 --> 00:09:11,960 Speaker 5: and so they, you know, from a reputational standpoint, want 185 00:09:11,960 --> 00:09:15,040 Speaker 5: to be public. And the last is probably you know, 186 00:09:15,600 --> 00:09:21,160 Speaker 5: the investors looking for liquidity, and again private equity is 187 00:09:21,920 --> 00:09:23,640 Speaker 5: I think there will be a number of IPOs that 188 00:09:23,720 --> 00:09:26,080 Speaker 5: come out over the next couple of years because we 189 00:09:26,120 --> 00:09:28,200 Speaker 5: haven't seen a lot of activity out of private equity 190 00:09:28,200 --> 00:09:31,160 Speaker 5: and returning capital to LPs. But right now they're you know, 191 00:09:31,240 --> 00:09:35,360 Speaker 5: for the most part, finding liquidity in the private market 192 00:09:35,600 --> 00:09:39,360 Speaker 5: more appealing than the IPO market, although we're seeing some 193 00:09:39,480 --> 00:09:43,160 Speaker 5: really attractive assets coming public, just in a more limited basis. 194 00:09:44,080 --> 00:09:47,280 Speaker 3: Kristin Roth to Clark Global Head of Technology Investment Banking. 195 00:09:47,280 --> 00:09:50,080 Speaker 3: Above is terrific way to start the program. Thank you 196 00:09:50,120 --> 00:09:52,760 Speaker 3: so much. We'll like to continue the conversation on the 197 00:09:52,800 --> 00:09:55,880 Speaker 3: tech IPO landscape later in the hour with Eric Hippo 198 00:09:56,000 --> 00:10:01,080 Speaker 3: of lera hippo. Really interesting conversation, interesting person, another interesting person, 199 00:10:01,240 --> 00:10:03,400 Speaker 3: don't want to miss are coming up. In the first instance, 200 00:10:03,440 --> 00:10:05,920 Speaker 3: we're going to hear from YouTube CEO Neil Mohen on 201 00:10:05,960 --> 00:10:08,640 Speaker 3: the company's plans for expansion. 202 00:10:08,720 --> 00:10:10,600 Speaker 6: Caroline some shares, some shares in. 203 00:10:10,600 --> 00:10:12,560 Speaker 4: The public trading market that are still available. 204 00:10:12,600 --> 00:10:15,680 Speaker 2: Salesforce absolutely just seeing it up about six tens percent. 205 00:10:15,760 --> 00:10:17,400 Speaker 4: Unlike the rest of the market, we're higher. 206 00:10:17,880 --> 00:10:20,880 Speaker 2: We are anticipating their earnings after the bell reporting their 207 00:10:21,000 --> 00:10:22,760 Speaker 2: fiscal first quarter earnings. 208 00:10:22,920 --> 00:10:25,319 Speaker 4: Look, how much are we able to see data. 209 00:10:25,040 --> 00:10:28,840 Speaker 2: Cloud, which obviously helps organize corporate data for analytics for 210 00:10:28,880 --> 00:10:32,200 Speaker 2: the all important AI space. How much is that going 211 00:10:32,280 --> 00:10:34,800 Speaker 2: to help with their focus on margins as well? 212 00:10:35,040 --> 00:10:36,160 Speaker 4: This is a Bluebogo technology. 213 00:10:45,920 --> 00:10:49,920 Speaker 3: How YouTube became must watch TV. That's the latest episode 214 00:10:49,960 --> 00:10:53,640 Speaker 3: of the Circuit where Bloomberger Regional's host Emily Chang sits 215 00:10:53,640 --> 00:10:57,800 Speaker 3: down with YouTube CEO Neil Mohen about transforming the platform 216 00:10:58,080 --> 00:10:59,640 Speaker 3: into the world's biggest streamer. 217 00:11:00,080 --> 00:11:06,040 Speaker 7: To this, YouTube's really kind of its own sort of 218 00:11:06,120 --> 00:11:09,920 Speaker 7: unique thing. We're not a social media platform, we're not 219 00:11:10,000 --> 00:11:13,280 Speaker 7: traditional media in the sense, we're not linear television. We're 220 00:11:13,320 --> 00:11:15,880 Speaker 7: really sort of our own thing. And so if we 221 00:11:15,920 --> 00:11:20,840 Speaker 7: live up to that vision, we think we're really still 222 00:11:20,840 --> 00:11:24,280 Speaker 7: in the early days of our growth story and fulfilling 223 00:11:24,280 --> 00:11:26,000 Speaker 7: what our mission is, which is to give everyone a 224 00:11:26,120 --> 00:11:27,280 Speaker 7: voice and show them the world. 225 00:11:27,520 --> 00:11:31,200 Speaker 8: Based on Nielsen's latest data, YouTube is now by far 226 00:11:31,559 --> 00:11:35,679 Speaker 8: the biggest streamer in the world, Netflix close behind, and 227 00:11:35,720 --> 00:11:40,720 Speaker 8: then everybody else drops way down who Disney Max. But 228 00:11:40,800 --> 00:11:43,440 Speaker 8: you don't get the awards or the critical acclaim. What 229 00:11:43,600 --> 00:11:45,040 Speaker 8: more does YouTube have to prove? 230 00:11:45,360 --> 00:11:48,439 Speaker 7: I do think that YouTube is getting recognized as that 231 00:11:48,480 --> 00:11:51,800 Speaker 7: platform on television screens. We just surpassed a billion hours 232 00:11:51,840 --> 00:11:55,199 Speaker 7: of watch time on living room screens, and you mentioned 233 00:11:55,200 --> 00:11:58,360 Speaker 7: the Nielsen ratings. That is certainly something that when I 234 00:11:58,400 --> 00:12:01,720 Speaker 7: speak to our advertising partner, the brands that look to 235 00:12:01,720 --> 00:12:04,840 Speaker 7: build connections with consumers on our platform, they recognize that 236 00:12:04,960 --> 00:12:07,360 Speaker 7: and they they see it as a place not just 237 00:12:07,600 --> 00:12:10,640 Speaker 7: of this broad reach, you know, the number one streaming 238 00:12:10,679 --> 00:12:14,679 Speaker 7: platform here in the US, but also reach that is 239 00:12:14,920 --> 00:12:18,160 Speaker 7: engaged and from a brand's perspective, that is something that 240 00:12:18,200 --> 00:12:21,200 Speaker 7: they are really recognizing. Like I said, it's still the 241 00:12:21,240 --> 00:12:23,680 Speaker 7: early days of our journey, but I do start to 242 00:12:23,720 --> 00:12:25,880 Speaker 7: hear that more and more from our partners. 243 00:12:26,160 --> 00:12:28,280 Speaker 8: YouTube is printing money for Google, as I understand it, 244 00:12:28,360 --> 00:12:31,280 Speaker 8: upwards of fifteen billion dollars a year. Where will the 245 00:12:31,320 --> 00:12:34,640 Speaker 8: future revenue growth come from. Talk to us about that 246 00:12:34,720 --> 00:12:36,560 Speaker 8: strategy and how it will play in. 247 00:12:36,880 --> 00:12:39,680 Speaker 7: If you think about YouTube today compared to what YouTube 248 00:12:39,760 --> 00:12:42,720 Speaker 7: was five years ago or certainly ten years ago, there 249 00:12:42,920 --> 00:12:45,959 Speaker 7: are an order of magnitude more creators on our platform. 250 00:12:46,280 --> 00:12:50,320 Speaker 7: We have a breadth of monetization offerings to support this 251 00:12:50,400 --> 00:12:55,040 Speaker 7: creator economy, not just ads, but subscription business. You know 252 00:12:55,080 --> 00:12:58,679 Speaker 7: that was the fifteen billion dollars subscription business across all 253 00:12:58,679 --> 00:13:01,720 Speaker 7: of Google, but also direct to fan funding like channel 254 00:13:01,720 --> 00:13:04,800 Speaker 7: memberships and things like that. So there's an enormous amount 255 00:13:04,840 --> 00:13:09,319 Speaker 7: of scale and complexity in the ecosystem that requires us 256 00:13:09,360 --> 00:13:14,120 Speaker 7: to rethink how we're going to support that creator ecosystem. 257 00:13:14,480 --> 00:13:17,800 Speaker 2: YouTube CEO Neil Maan, along with Bloomberg's Emini Chang. You 258 00:13:17,800 --> 00:13:20,320 Speaker 2: can catch the full episode of The Circuit tonight six 259 00:13:20,400 --> 00:13:21,679 Speaker 2: pm right. 260 00:13:21,480 --> 00:13:22,800 Speaker 4: Here on Blomberg Television. 261 00:13:29,920 --> 00:13:32,480 Speaker 2: Let's talk about open AI because Helen Toner is a 262 00:13:32,520 --> 00:13:35,760 Speaker 2: former board member of open ai and has actually said 263 00:13:35,800 --> 00:13:39,160 Speaker 2: that the board didn't know about the original twenty twenty 264 00:13:39,200 --> 00:13:42,920 Speaker 2: two launch of chat CBT until afterwards and that they 265 00:13:42,960 --> 00:13:46,000 Speaker 2: only found out about it on well Twitter or x. 266 00:13:46,320 --> 00:13:49,680 Speaker 2: Let's bring in Bloomberg's Seth Figman for more on what 267 00:13:49,800 --> 00:13:51,520 Speaker 2: seems to be more. 268 00:13:51,320 --> 00:13:53,320 Speaker 4: Discussion in the press coming from Helen Toner. 269 00:13:53,400 --> 00:13:56,079 Speaker 2: She'd already written a piece with Tash as well another 270 00:13:56,080 --> 00:13:59,040 Speaker 2: previous board member, about some of their worries about AI governance. 271 00:13:59,040 --> 00:13:59,840 Speaker 4: This keeps building. 272 00:14:00,200 --> 00:14:01,959 Speaker 9: Yeah, I mean it's remarkable. I have a former board 273 00:14:01,960 --> 00:14:04,280 Speaker 9: member who's just going rogue at this point and really 274 00:14:04,320 --> 00:14:07,720 Speaker 9: bashing the company, or at least its current leadership. The 275 00:14:08,160 --> 00:14:11,000 Speaker 9: claim about Chatchibt is remarkable. Here's their biggest, best known 276 00:14:11,040 --> 00:14:13,440 Speaker 9: product them they're saying that the Borg had no previous 277 00:14:13,480 --> 00:14:15,160 Speaker 9: awareness that it was going to be launched. Now there's 278 00:14:15,160 --> 00:14:17,720 Speaker 9: a caveat there. When they released this product, it was 279 00:14:17,760 --> 00:14:19,800 Speaker 9: kind of a slow burn. Initially, people didn't know it 280 00:14:19,840 --> 00:14:21,520 Speaker 9: was going to be as big as it became. But 281 00:14:21,560 --> 00:14:23,680 Speaker 9: the bigger takeaway from this piece is that she's really 282 00:14:24,080 --> 00:14:27,000 Speaker 9: gegging at the idea that there was a long series 283 00:14:27,040 --> 00:14:31,360 Speaker 9: of times where they were either misinformed, uninformed, or felt 284 00:14:31,400 --> 00:14:35,200 Speaker 9: like they were being manipulated by Sam Altman. And for 285 00:14:35,400 --> 00:14:37,560 Speaker 9: months now it's been a guessing game in and out 286 00:14:37,600 --> 00:14:41,400 Speaker 9: of Silicon Valley. What Precipititikea the ouster last year. This 287 00:14:41,520 --> 00:14:43,040 Speaker 9: is really the most that we've seen so far that 288 00:14:43,080 --> 00:14:44,200 Speaker 9: gets at that question. 289 00:14:44,960 --> 00:14:47,120 Speaker 3: Seth As you know, I remember the weekend as Sam 290 00:14:47,120 --> 00:14:50,720 Speaker 3: Outman's Ousta Helen Tona didn't pick up the phone. 291 00:14:51,600 --> 00:14:52,880 Speaker 6: She hadn't had much to say. 292 00:14:52,920 --> 00:14:55,360 Speaker 3: Then in the last twenty four hours or forty eight hours, 293 00:14:55,520 --> 00:14:57,960 Speaker 3: she's had quite a lot to say. But the issue 294 00:14:57,960 --> 00:15:00,960 Speaker 3: is the relationship with Sam. See something Sam Oltman told 295 00:15:00,960 --> 00:15:01,800 Speaker 3: Bloomberg last year. 296 00:15:01,880 --> 00:15:06,000 Speaker 8: Have listen, you have an incredible amount of power at 297 00:15:06,000 --> 00:15:10,560 Speaker 8: this moment in time. Why should we trust you? 298 00:15:10,560 --> 00:15:13,680 Speaker 10: You shouldn't, I think at this moment in time, like 299 00:15:13,960 --> 00:15:17,640 Speaker 10: people deserve basically as much time asking questions as they want, 300 00:15:17,920 --> 00:15:19,680 Speaker 10: and I'm trying to show up and do it. But 301 00:15:19,720 --> 00:15:25,440 Speaker 10: more to that, like no one person should be trusted here. 302 00:15:25,680 --> 00:15:30,240 Speaker 10: I don't have super voting shares, like I don't want them. 303 00:15:30,440 --> 00:15:32,280 Speaker 6: The board can fire me. I think that's important. 304 00:15:34,480 --> 00:15:37,800 Speaker 3: So at its route, there's Sam Altman pushing to commercialize 305 00:15:37,920 --> 00:15:40,560 Speaker 3: the technology, and then there's different iterations of the board 306 00:15:40,560 --> 00:15:41,640 Speaker 3: who seem unaware. 307 00:15:42,440 --> 00:15:43,960 Speaker 6: I don't really know where to go next with that. 308 00:15:44,920 --> 00:15:46,960 Speaker 9: Well, you're right again, it's pretty remarkable. I think there's 309 00:15:47,000 --> 00:15:49,400 Speaker 9: been a drip drip from Helen. She's become a little 310 00:15:49,440 --> 00:15:52,320 Speaker 9: bit more comfortable being public about her concerns. You're right, 311 00:15:52,400 --> 00:15:54,960 Speaker 9: For months, we really couldn't get much detail. What we've 312 00:15:54,960 --> 00:15:57,880 Speaker 9: heard was essentially that there was a long simmering build 313 00:15:57,960 --> 00:16:01,280 Speaker 9: up of mistrust and miscommunication, and in her latest statements 314 00:16:01,280 --> 00:16:02,360 Speaker 9: we're seeing a little bit more on that. 315 00:16:03,280 --> 00:16:07,240 Speaker 2: The current context is that you can't trust Sam when 316 00:16:07,240 --> 00:16:10,520 Speaker 2: it comes to discussions with celebrities when it comes to that, 317 00:16:10,680 --> 00:16:14,280 Speaker 2: ultimately is what people are now realizing, rightly or wrongly. 318 00:16:14,800 --> 00:16:17,920 Speaker 2: What was cast into the public discourse has of course 319 00:16:17,960 --> 00:16:21,160 Speaker 2: been Scarlett Johnson and the calls or what time they happened, 320 00:16:21,240 --> 00:16:25,240 Speaker 2: and AI really trying to just lay out the order 321 00:16:25,320 --> 00:16:28,400 Speaker 2: of a currency of when they discussed using the voice 322 00:16:28,400 --> 00:16:30,600 Speaker 2: at Scarlett u Hansson and when they're already talked to 323 00:16:30,640 --> 00:16:31,560 Speaker 2: actors and actresses. 324 00:16:31,840 --> 00:16:33,560 Speaker 4: But there is a feeling of distrust. 325 00:16:33,200 --> 00:16:34,960 Speaker 9: Going I think so I think they're taking pains now 326 00:16:35,000 --> 00:16:36,720 Speaker 9: go to be as transparent as they can be. What's 327 00:16:36,760 --> 00:16:38,960 Speaker 9: funny is that for all of the tension that they've 328 00:16:38,960 --> 00:16:41,720 Speaker 9: have at board members never cross a famous actress. I 329 00:16:41,720 --> 00:16:43,560 Speaker 9: think that's where you're going to really lose the public. 330 00:16:44,360 --> 00:16:47,360 Speaker 2: Seth Fiegerman. We'll see what the next response is from 331 00:16:47,360 --> 00:16:50,080 Speaker 2: open Ai. Amid all of this, we thank him for 332 00:16:50,120 --> 00:16:52,920 Speaker 2: walking us through it. Meanwhile, open Ai has actually got 333 00:16:52,960 --> 00:16:54,640 Speaker 2: some competition, you know it, and one of them is 334 00:16:54,640 --> 00:16:57,480 Speaker 2: from Francis mistral Ai, which has launched in early twenty 335 00:16:57,520 --> 00:17:00,160 Speaker 2: twenty three as a European rival, but it's now eyeing. 336 00:17:00,400 --> 00:17:01,400 Speaker 4: The United States. 337 00:17:01,640 --> 00:17:04,280 Speaker 2: We're going in Blomberg's Matt Berg and for more and 338 00:17:04,480 --> 00:17:10,280 Speaker 2: they're hiring a key member of talent, right. 339 00:17:10,280 --> 00:17:12,560 Speaker 11: So this has been a major hire. And this is 340 00:17:12,600 --> 00:17:14,680 Speaker 11: a really closely watched start up here in Europe, and 341 00:17:14,720 --> 00:17:19,960 Speaker 11: there's really no precedence for company aside from maybe Spotify 342 00:17:20,119 --> 00:17:23,280 Speaker 11: having becoming a global technology success out of Europe, and 343 00:17:23,320 --> 00:17:25,200 Speaker 11: that seems to be ambision of Mistro at least that's 344 00:17:25,200 --> 00:17:26,639 Speaker 11: what their investors are signaling. 345 00:17:26,720 --> 00:17:26,840 Speaker 8: Right. 346 00:17:26,840 --> 00:17:30,879 Speaker 11: There's reports that that in probably a less than fourteen months, 347 00:17:30,880 --> 00:17:33,479 Speaker 11: they've now gone from zero to a company worth six billion, 348 00:17:33,840 --> 00:17:36,040 Speaker 11: and so there's a lot of expectations and a pretty 349 00:17:36,080 --> 00:17:37,320 Speaker 11: high evaluation they have to meet. 350 00:17:39,280 --> 00:17:41,920 Speaker 3: Mark give me a sense of mistrual size and scale, 351 00:17:41,960 --> 00:17:44,960 Speaker 3: Like we report on them a lot they're a little 352 00:17:44,960 --> 00:17:48,159 Speaker 3: bit shy. They've been regulatory focuses in Europe. Tell me 353 00:17:48,200 --> 00:17:49,200 Speaker 3: about the basics. 354 00:17:49,560 --> 00:17:52,160 Speaker 11: Yes, the basics are pretty small. 355 00:17:52,240 --> 00:17:53,440 Speaker 6: That's sort of thing that I mean. 356 00:17:53,480 --> 00:17:56,040 Speaker 11: I think that from my sense it's probably a team 357 00:17:56,080 --> 00:17:58,240 Speaker 11: of maybe around fifty at this point. I mean, it 358 00:17:59,160 --> 00:18:01,480 Speaker 11: could be a little biggeran that, but but you know there, 359 00:18:01,720 --> 00:18:04,040 Speaker 11: that's sort of their mo is that we are leaner, 360 00:18:04,359 --> 00:18:09,880 Speaker 11: We're building these smaller, more agile AI models. They're open source. 361 00:18:10,920 --> 00:18:13,879 Speaker 11: They're very at this point very close to the French 362 00:18:13,920 --> 00:18:16,760 Speaker 11: government in a sense that one of their co founders 363 00:18:16,800 --> 00:18:19,520 Speaker 11: and it's kind of their policy chief is the prior 364 00:18:19,680 --> 00:18:23,840 Speaker 11: French Digital minister. Macrone has talked about supporting them. Last 365 00:18:23,840 --> 00:18:26,280 Speaker 11: week I gave this really interesting comments about how he 366 00:18:26,400 --> 00:18:29,320 Speaker 11: preferred that they would grow big on their own and 367 00:18:29,359 --> 00:18:32,200 Speaker 11: remain independent. The sort of subtext there was, don't sell 368 00:18:32,320 --> 00:18:36,440 Speaker 11: to a big tech American firm. 369 00:18:36,680 --> 00:18:39,320 Speaker 6: The bag Smartberg in terrific reporting out of Yurope. We 370 00:18:39,400 --> 00:18:40,320 Speaker 6: really appreciate it. 371 00:18:48,440 --> 00:18:51,400 Speaker 3: Welcome back to BLIEMBG Technology. Ed Ludlow in San Francisco. 372 00:18:51,520 --> 00:18:52,560 Speaker 4: I'm callin hid in New York. 373 00:18:52,640 --> 00:18:55,000 Speaker 2: Quick check on your markets today because we are more 374 00:18:55,040 --> 00:18:58,040 Speaker 2: and about born costs bonields rising. That's dragging some of 375 00:18:58,040 --> 00:19:00,399 Speaker 2: the stock markets lower. Ashley the NASDA and then as 376 00:19:00,440 --> 00:19:03,720 Speaker 2: that one hundred outperforming other key US benchmarks, but we 377 00:19:03,760 --> 00:19:06,040 Speaker 2: are lower by four tens percent on the big tech 378 00:19:06,119 --> 00:19:09,160 Speaker 2: benchmark of the nas that one hundred tenure yield as 379 00:19:09,200 --> 00:19:11,800 Speaker 2: a thirtyer yield across the board. In fact, we're seeing 380 00:19:11,920 --> 00:19:14,359 Speaker 2: born costs rising as we have another big auction forty 381 00:19:14,359 --> 00:19:15,159 Speaker 2: four billion dollars a. 382 00:19:15,200 --> 00:19:16,080 Speaker 4: Seven year deck coming. 383 00:19:16,440 --> 00:19:19,520 Speaker 2: Will there be not as much demand as was hoped 384 00:19:19,840 --> 00:19:21,679 Speaker 2: like we've seen in the previous two auctions. We're up 385 00:19:21,720 --> 00:19:23,879 Speaker 2: six basis points bitcoin. On the downside, we're off by 386 00:19:23,960 --> 00:19:26,920 Speaker 2: nine tens percent sixty seven thousand. Moving on though, as 387 00:19:26,920 --> 00:19:31,200 Speaker 2: we try to mark through what is a slight tempering 388 00:19:31,359 --> 00:19:33,800 Speaker 2: of risk appetite. The socks is one of the ones 389 00:19:33,840 --> 00:19:36,720 Speaker 2: that underperforms the Philadelphia Semiconductor Index off by one and 390 00:19:36,720 --> 00:19:39,240 Speaker 2: a half percent. Every single chip maker down, but that's 391 00:19:39,240 --> 00:19:41,280 Speaker 2: because they've been rallying so hard in previous weeks. 392 00:19:41,280 --> 00:19:43,159 Speaker 4: Maybe we've got a little bit of profit taking going on. 393 00:19:43,200 --> 00:19:45,520 Speaker 2: Certainly the case for the Maderna, we're off by almost 394 00:19:45,520 --> 00:19:48,400 Speaker 2: five percent, had a horrible day yesterday, but that's after 395 00:19:48,440 --> 00:19:51,320 Speaker 2: it had a record winning streak of ten straight days 396 00:19:51,359 --> 00:19:54,000 Speaker 2: of gains profit taking. This is a company also injecting 397 00:19:54,240 --> 00:19:57,800 Speaker 2: generator of AI throughout its focus on healthcare. We're looking 398 00:19:57,880 --> 00:20:00,359 Speaker 2: at Amazon actually one of the outperformers on the day. 399 00:20:00,359 --> 00:20:02,760 Speaker 2: We're up three quarters of percent. Nice little headline there 400 00:20:02,760 --> 00:20:07,040 Speaker 2: that they're once again expanding their partnership deal with Germany's 401 00:20:07,119 --> 00:20:10,240 Speaker 2: sap SO. A key focus there on the power of 402 00:20:10,280 --> 00:20:13,600 Speaker 2: generative AI coming into bedrock and aws more broadly. 403 00:20:13,680 --> 00:20:15,160 Speaker 4: And then we've got more on Amazon. 404 00:20:15,720 --> 00:20:16,240 Speaker 6: Yeah, we do. 405 00:20:16,320 --> 00:20:19,920 Speaker 3: For years the Amazon unit, Ring touted its crime fighting 406 00:20:19,960 --> 00:20:23,760 Speaker 3: features thanks to its selling smart doorbells that let homeowners 407 00:20:24,040 --> 00:20:27,960 Speaker 3: remotely monitor their residences. But today the kind of footage 408 00:20:28,040 --> 00:20:32,360 Speaker 3: Ring users share is less about suspicious activity and more 409 00:20:32,400 --> 00:20:37,400 Speaker 3: about pets or wild animal sightings and water balloon fights. 410 00:20:37,440 --> 00:20:39,359 Speaker 3: And it's all part of how Ring is trying to 411 00:20:39,440 --> 00:20:43,560 Speaker 3: reinvent itself, aiming for more of a mashup between something 412 00:20:43,640 --> 00:20:46,280 Speaker 3: akin to Nextdoor or even TikTok. 413 00:20:46,560 --> 00:20:48,680 Speaker 6: Here to discuss the why is. 414 00:20:48,680 --> 00:20:51,960 Speaker 3: Ring CEO Liz hammern in actually the first sort of 415 00:20:52,000 --> 00:20:55,320 Speaker 3: sit down interview since you've been CEO. Actually, you and 416 00:20:55,359 --> 00:20:57,479 Speaker 3: I met almost one year to the day you are 417 00:20:57,520 --> 00:21:00,960 Speaker 3: one year in this role. The best place to start 418 00:21:01,040 --> 00:21:04,959 Speaker 3: is probably why a new mission? What prompted you to say, Okay, 419 00:21:05,320 --> 00:21:07,040 Speaker 3: Ring's got to be a different company. 420 00:21:07,880 --> 00:21:10,160 Speaker 12: Well, you know, our new mission was really prompted by 421 00:21:10,320 --> 00:21:12,119 Speaker 12: my last year of going out and talking to our 422 00:21:12,160 --> 00:21:14,960 Speaker 12: customers and talking to our employees and seeing how people 423 00:21:14,960 --> 00:21:17,359 Speaker 12: were using our cameras. And one of the things that 424 00:21:17,400 --> 00:21:20,320 Speaker 12: we found is that while our mission around safety and 425 00:21:20,320 --> 00:21:22,800 Speaker 12: security is still very relevant, people use these cameras to 426 00:21:22,840 --> 00:21:25,840 Speaker 12: feel safe and secure, but they were also using them 427 00:21:25,880 --> 00:21:29,320 Speaker 12: for so much more for convenience. Did my packages arrive 428 00:21:29,680 --> 00:21:32,320 Speaker 12: for presence and control? How busy is my small business? 429 00:21:32,320 --> 00:21:34,560 Speaker 12: Do I need to send more staff or a connection? 430 00:21:34,680 --> 00:21:37,280 Speaker 12: People do love to watch their pets with their Ring cameras, 431 00:21:37,720 --> 00:21:39,960 Speaker 12: and we were finding as we were building new products 432 00:21:40,160 --> 00:21:42,840 Speaker 12: that their mission was limiting and just too narrow. And 433 00:21:42,920 --> 00:21:45,480 Speaker 12: so our new mission is just more expansive for how 434 00:21:45,480 --> 00:21:47,800 Speaker 12: people use our products and how we want to build products. 435 00:21:47,920 --> 00:21:50,040 Speaker 3: The expensive part is interesting. Full disclosure. We are a 436 00:21:50,119 --> 00:21:52,680 Speaker 3: Ring family. You know, often when my father in law's 437 00:21:52,680 --> 00:21:55,080 Speaker 3: here in San Francisco, he's worrying about whatever's going on 438 00:21:55,119 --> 00:21:58,720 Speaker 3: at home down in Socow. He consults his phone to 439 00:21:58,840 --> 00:22:02,800 Speaker 3: check it on ring these new areas, do you see 440 00:22:02,840 --> 00:22:05,040 Speaker 3: sort of a meaningful split or even can you give 441 00:22:05,080 --> 00:22:08,240 Speaker 3: me a proportion of what sales you think are driven 442 00:22:08,280 --> 00:22:12,000 Speaker 3: by security versus I guess what is social interaction? 443 00:22:12,720 --> 00:22:12,960 Speaker 4: Well? 444 00:22:13,000 --> 00:22:14,760 Speaker 12: I think that it's about, you know, why do I 445 00:22:14,800 --> 00:22:16,760 Speaker 12: buy and then how do I use it? And a 446 00:22:16,760 --> 00:22:18,359 Speaker 12: lot of white people buy is they want to be 447 00:22:18,440 --> 00:22:20,280 Speaker 12: connected to their homes. Their homes one of their most 448 00:22:20,359 --> 00:22:22,359 Speaker 12: valuable assets. They want to see what's going on, They 449 00:22:22,400 --> 00:22:24,760 Speaker 12: want to feel safe and secure. But what they find 450 00:22:24,840 --> 00:22:27,960 Speaker 12: is there's any number of convenience features to using it. 451 00:22:28,280 --> 00:22:29,320 Speaker 4: I suspect that what. 452 00:22:31,119 --> 00:22:35,160 Speaker 12: Your father shows you is not just security in safety features, 453 00:22:35,160 --> 00:22:37,480 Speaker 12: but funny things that happen at home, or surprising weather, 454 00:22:37,760 --> 00:22:40,639 Speaker 12: or any number of things that make you connected to 455 00:22:40,680 --> 00:22:41,800 Speaker 12: your home or small business. 456 00:22:42,520 --> 00:22:46,880 Speaker 2: That connection is allowing you to well make some revenue, 457 00:22:47,160 --> 00:22:50,879 Speaker 2: drive twenty dollars a month subscription and you now are 458 00:22:51,080 --> 00:22:53,680 Speaker 2: aiming and have attained profitability. 459 00:22:53,760 --> 00:22:54,480 Speaker 4: Is that sustainable? 460 00:22:54,640 --> 00:22:56,320 Speaker 12: Is yes? 461 00:22:56,440 --> 00:22:57,520 Speaker 4: I believe so. 462 00:22:57,600 --> 00:23:00,720 Speaker 12: I think this is actually just the beginning of you know, 463 00:23:00,760 --> 00:23:04,240 Speaker 12: significant continued significant business growth. You know, last year we 464 00:23:04,320 --> 00:23:08,520 Speaker 12: grew double digits, and where we see continued continued growth here, 465 00:23:08,640 --> 00:23:11,680 Speaker 12: especially as we think about Ring really being a video 466 00:23:11,760 --> 00:23:14,520 Speaker 12: service company. When people talk to you about their Ring 467 00:23:14,560 --> 00:23:17,080 Speaker 12: cameras and they're not showing you their camera as iconic, 468 00:23:17,240 --> 00:23:19,919 Speaker 12: you know, as our hardware is, they're showing you video 469 00:23:20,080 --> 00:23:23,360 Speaker 12: on your phone, and that video service is incredibly valuable, 470 00:23:23,359 --> 00:23:25,560 Speaker 12: and as we invest in computer vision and AI to 471 00:23:25,600 --> 00:23:28,360 Speaker 12: make it even more valuable, we think the business will 472 00:23:28,359 --> 00:23:30,440 Speaker 12: continue to be profitable and grow. 473 00:23:31,160 --> 00:23:34,639 Speaker 2: Lizio expertise has been in the world of connected cameras. 474 00:23:34,640 --> 00:23:37,000 Speaker 2: You came from dot Com, You've got a lot of 475 00:23:37,240 --> 00:23:39,119 Speaker 2: business expertise. 476 00:23:38,560 --> 00:23:42,159 Speaker 4: Prior to joining and leading Ring. Was now the moment 477 00:23:42,200 --> 00:23:44,320 Speaker 4: to turn on the money pipeline? 478 00:23:44,560 --> 00:23:47,520 Speaker 2: Or is it more where Amazon is within a focus 479 00:23:47,560 --> 00:23:49,680 Speaker 2: on profitability rather than growth at all costs. 480 00:23:51,800 --> 00:23:53,960 Speaker 12: You know, I think that I'm not sure I would 481 00:23:54,040 --> 00:23:57,160 Speaker 12: would think about it as is it this binary decision? 482 00:23:57,320 --> 00:23:59,679 Speaker 12: I mean, the business is very healthy, and the natural 483 00:23:59,720 --> 00:24:02,919 Speaker 12: course of this business is to be profitable based on 484 00:24:03,000 --> 00:24:07,320 Speaker 12: the size of the business and the customer demand. And frankly, 485 00:24:07,400 --> 00:24:10,040 Speaker 12: the vast majority of our customers subscribe to our subscription 486 00:24:10,160 --> 00:24:13,320 Speaker 12: service and that is a big driver of our business health. 487 00:24:13,880 --> 00:24:15,000 Speaker 6: It's an interesting time. 488 00:24:15,040 --> 00:24:19,119 Speaker 3: Amazon Panos Panais come in to lead the Devices and 489 00:24:19,200 --> 00:24:23,960 Speaker 3: Services group broadly, how has your relationship been with him 490 00:24:24,000 --> 00:24:26,520 Speaker 3: and how do you work together because there's a lot 491 00:24:26,520 --> 00:24:30,800 Speaker 3: of I guess interruptibility between Ring the Amazon ecosystem. 492 00:24:31,320 --> 00:24:33,320 Speaker 12: Yeah, you know, well Panas and I actually work together 493 00:24:33,359 --> 00:24:36,280 Speaker 12: back in my days at Microsoft. So it's awesome to 494 00:24:36,320 --> 00:24:39,840 Speaker 12: have to have him leading Devices and Services for Amazon. 495 00:24:40,400 --> 00:24:43,000 Speaker 12: And you know, we work together to ensure that all 496 00:24:43,000 --> 00:24:46,480 Speaker 12: of our products work together. And so you know, many 497 00:24:47,000 --> 00:24:50,159 Speaker 12: customers connect their Ring cameras to Alexa, and about a 498 00:24:50,200 --> 00:24:53,800 Speaker 12: third of our doorbell customers actually use an Echo device 499 00:24:53,880 --> 00:24:54,560 Speaker 12: as their time. 500 00:24:56,480 --> 00:24:59,920 Speaker 3: It's competitive, you know, I get advertisements all the time 501 00:25:00,280 --> 00:25:04,880 Speaker 3: for other similar camera based technologies. What would you say 502 00:25:04,960 --> 00:25:09,240 Speaker 3: is rings point of differentiation technologically speaking? 503 00:25:09,280 --> 00:25:11,359 Speaker 6: What is it that you are doing better or at 504 00:25:11,400 --> 00:25:12,679 Speaker 6: a higher level than the others? 505 00:25:13,200 --> 00:25:16,040 Speaker 12: Well, I think it's a combination of our software and 506 00:25:16,160 --> 00:25:19,439 Speaker 12: our hardware. But really the differentiation is in software. And 507 00:25:19,520 --> 00:25:22,000 Speaker 12: as you point out, there's lots of cameras on the market, 508 00:25:22,040 --> 00:25:25,040 Speaker 12: but what makes them unique is really how the software 509 00:25:25,040 --> 00:25:27,080 Speaker 12: takes advantage of the hardware capabilities. 510 00:25:27,720 --> 00:25:30,160 Speaker 2: I'm so looking at this footage is hilarious. This guy 511 00:25:30,280 --> 00:25:33,080 Speaker 2: trying to scare this bear off through different camera And 512 00:25:33,119 --> 00:25:35,840 Speaker 2: I've actually watched many friends trying to be terrified about 513 00:25:35,880 --> 00:25:38,160 Speaker 2: squirrel inside their house due to some sort of camera. 514 00:25:38,800 --> 00:25:42,359 Speaker 2: What's so interesting is you oversee other parts as well. 515 00:25:42,400 --> 00:25:44,920 Speaker 2: There's Blink camera, there's Key in home delivery services that 516 00:25:45,000 --> 00:25:47,480 Speaker 2: you're saying, and people using these sorts of technologies for 517 00:25:47,520 --> 00:25:50,720 Speaker 2: efficiency and for knowing when you've got deliveries sidewalk wireless 518 00:25:50,880 --> 00:25:52,640 Speaker 2: network or miss a meshweb network. 519 00:25:52,680 --> 00:25:52,880 Speaker 4: Here. 520 00:25:53,160 --> 00:25:55,160 Speaker 2: You're not going to the world of thermostats and other 521 00:25:55,200 --> 00:25:58,000 Speaker 2: connected areas in your part of business, are you, Liz, 522 00:25:58,520 --> 00:26:00,920 Speaker 2: Because for me, that's a differentiation the Google. 523 00:26:00,600 --> 00:26:03,400 Speaker 4: Office, for example, in nest so for. 524 00:26:03,440 --> 00:26:06,360 Speaker 12: Rings specifically and Blink and the areas that I oversee. 525 00:26:06,400 --> 00:26:09,600 Speaker 12: We're really focused on this notion of understanding what's going 526 00:26:09,640 --> 00:26:12,600 Speaker 12: on at your homer business and then with Key providing 527 00:26:12,640 --> 00:26:15,320 Speaker 12: access to it. And so although those products are interesting, 528 00:26:15,320 --> 00:26:17,959 Speaker 12: they're not they don't really fit with our mission of 529 00:26:18,080 --> 00:26:22,880 Speaker 12: keeping people close to what's important. And so I think 530 00:26:23,240 --> 00:26:26,760 Speaker 12: we're just really focused on the products that do that, 531 00:26:27,400 --> 00:26:30,840 Speaker 12: and I think we're pretty busy and full just fulfilling 532 00:26:30,840 --> 00:26:31,520 Speaker 12: on that mission. 533 00:26:31,880 --> 00:26:33,720 Speaker 3: Alice, the director in New York, is going to bring 534 00:26:33,800 --> 00:26:35,399 Speaker 3: up that footage of the bear again. 535 00:26:36,040 --> 00:26:37,879 Speaker 6: I see that all the time. 536 00:26:39,280 --> 00:26:42,159 Speaker 3: I see images just like those, what are those wild 537 00:26:42,200 --> 00:26:45,959 Speaker 3: bore or something squirrel fantastic, But I see them on 538 00:26:46,000 --> 00:26:48,640 Speaker 3: TikTok and I see them on Instagram reels. 539 00:26:48,840 --> 00:26:50,359 Speaker 6: That's where the content is shared. 540 00:26:50,720 --> 00:26:54,800 Speaker 3: So how does Ring derive a benefit from the enthusiasm 541 00:26:54,840 --> 00:26:57,720 Speaker 3: of the customer who then takes it and shares it elsewhere. 542 00:26:58,160 --> 00:26:59,320 Speaker 4: Well, I think in two ways. 543 00:26:59,400 --> 00:27:01,600 Speaker 12: One is our customers to feel like they get a 544 00:27:01,600 --> 00:27:03,399 Speaker 12: lot of value out of their products, and one of 545 00:27:03,400 --> 00:27:06,240 Speaker 12: those values is being able to download videos and share 546 00:27:06,280 --> 00:27:09,240 Speaker 12: them however they would like. And then it also drives 547 00:27:09,280 --> 00:27:12,159 Speaker 12: awareness of the products. So people who maybe aren't yet 548 00:27:12,200 --> 00:27:14,640 Speaker 12: Ring customers see those videos and think, oh, I really 549 00:27:14,680 --> 00:27:16,480 Speaker 12: want to make sure I can stay connected to my home. 550 00:27:16,800 --> 00:27:19,879 Speaker 3: It's like it's like marketing, you know, through through social 551 00:27:19,960 --> 00:27:23,280 Speaker 3: and it's like ownership spreading the word like Tesla does 552 00:27:23,520 --> 00:27:26,879 Speaker 3: with its evs. I find that all Raccoon Ring CEO 553 00:27:27,200 --> 00:27:29,399 Speaker 3: Liz hammern it's just fantastic to finally get you on 554 00:27:29,440 --> 00:27:31,040 Speaker 3: the show one year into the job. 555 00:27:31,080 --> 00:27:33,880 Speaker 6: Thank you so much, Car. You've got some other news headlines. 556 00:27:33,600 --> 00:27:35,600 Speaker 2: I too, what a great conversation, but it's time for 557 00:27:35,640 --> 00:27:38,359 Speaker 2: talking tech now and first up, Nobel Laureate Paul Roma 558 00:27:38,520 --> 00:27:42,000 Speaker 2: issuing warning about artificial intelligence speaking to Blue MEGDV in 559 00:27:42,000 --> 00:27:45,080 Speaker 2: Hong Kong. The economics professor Liken sy Ai market run 560 00:27:45,440 --> 00:27:46,800 Speaker 2: to the crypto hype mubble. 561 00:27:46,840 --> 00:27:48,920 Speaker 4: Take a listen right now. 562 00:27:48,960 --> 00:27:53,080 Speaker 13: There's way too much confidence about the future trajectory of AI. 563 00:27:53,480 --> 00:27:56,360 Speaker 13: Would people project this forward? I think they're at risk 564 00:27:56,400 --> 00:28:00,000 Speaker 13: of making a very serious mistake. We've benefited from skilled 565 00:28:00,000 --> 00:28:03,560 Speaker 13: scaling up compute and ingesting a whole lot of data. 566 00:28:03,680 --> 00:28:07,480 Speaker 13: Scaling up computes pretty easy. It's just war machines, more chips. 567 00:28:07,520 --> 00:28:09,159 Speaker 13: But what's going to happen is we're not going to 568 00:28:09,160 --> 00:28:09,840 Speaker 13: have enough data. 569 00:28:11,119 --> 00:28:14,280 Speaker 2: Meanwhile, talking of hyper not around AI. The US and 570 00:28:14,400 --> 00:28:18,560 Speaker 2: UK arms of accounting firm PwC. They're set to start 571 00:28:18,600 --> 00:28:21,080 Speaker 2: selling open ai products directly to clients, and the agreement 572 00:28:21,080 --> 00:28:24,600 Speaker 2: will allow PwC to become the first reseller of chatchpt 573 00:28:24,760 --> 00:28:27,000 Speaker 2: enterprise products geared towards business use. 574 00:28:27,240 --> 00:28:28,840 Speaker 4: In terms of the deal, we're not disclosed. 575 00:28:29,320 --> 00:28:33,040 Speaker 2: And a lawsuit challenging webscraping practices of open Ai and 576 00:28:33,119 --> 00:28:35,520 Speaker 2: Microsoft has been dismissed. 577 00:28:34,920 --> 00:28:36,359 Speaker 4: By a federal judge in California. 578 00:28:36,560 --> 00:28:39,720 Speaker 2: The complaint accused open Ai and Microsoft of violating property 579 00:28:39,720 --> 00:28:43,440 Speaker 2: and privacy laws by stealing data to train AI systems. Now, 580 00:28:43,480 --> 00:28:45,600 Speaker 2: the judge slam the attorneys who file the complaints for 581 00:28:45,680 --> 00:28:50,600 Speaker 2: being excessively long and meandering, calling the suit quote unnecessary. 582 00:28:50,280 --> 00:28:52,280 Speaker 4: And distracting youan while. 583 00:28:52,320 --> 00:28:54,320 Speaker 2: Coming up, we'll talk about the state of the US 584 00:28:54,440 --> 00:28:55,200 Speaker 2: IPO market. 585 00:28:55,440 --> 00:28:56,440 Speaker 4: Leric Hippo of. 586 00:28:56,440 --> 00:29:09,320 Speaker 2: Lere Hippo coming up next, this Bluemo technology. We talked 587 00:29:09,320 --> 00:29:12,040 Speaker 2: about a little bit earlier the lack of IPOs in 588 00:29:12,080 --> 00:29:14,560 Speaker 2: the market, and in a recent op ed Lara Hippo 589 00:29:14,640 --> 00:29:17,320 Speaker 2: managing partner, Eric Hippo argues, then the number of public 590 00:29:17,400 --> 00:29:20,480 Speaker 2: US companies is plumitting, and that's bad news for the 591 00:29:20,480 --> 00:29:25,080 Speaker 2: democratic component of the economy, saying exit opportunities, they're critical 592 00:29:25,120 --> 00:29:28,160 Speaker 2: to the promise of American innovation and neglecting them or 593 00:29:28,200 --> 00:29:31,840 Speaker 2: their collective detriment and polase to say, we're welcoming to 594 00:29:31,880 --> 00:29:34,840 Speaker 2: the show now, Lara Hippo managing partner, Eric, as you 595 00:29:35,200 --> 00:29:38,400 Speaker 2: helped write that out and now thinking about broadening out 596 00:29:38,400 --> 00:29:41,600 Speaker 2: the conversation. You articulate why it's bad for want to 597 00:29:41,600 --> 00:29:47,120 Speaker 2: be investors and indeed for future growth and financial benefits 598 00:29:47,160 --> 00:29:50,520 Speaker 2: to many, Eric, But why is this happening from your perspective. 599 00:29:51,760 --> 00:29:56,760 Speaker 1: Well, it's happening mostly due to regulations, so that's the 600 00:29:57,040 --> 00:30:00,920 Speaker 1: number one factor. Number two factor is that companies are 601 00:30:01,000 --> 00:30:04,120 Speaker 1: choosing to stay private longer because there's more private capital. 602 00:30:04,560 --> 00:30:06,800 Speaker 1: It's a bit of a conundrum because obviously all of 603 00:30:06,800 --> 00:30:10,640 Speaker 1: this private capital is expecting an exit at some point, 604 00:30:10,720 --> 00:30:14,400 Speaker 1: which is likely to be the public markets. So we 605 00:30:15,240 --> 00:30:17,840 Speaker 1: used to have eight thousand public companies back in the nineties. 606 00:30:17,920 --> 00:30:20,840 Speaker 1: We are down to less than four thousand at this phase. 607 00:30:20,960 --> 00:30:23,520 Speaker 1: We'll be down to two thousand in another twenty years. 608 00:30:23,920 --> 00:30:26,600 Speaker 1: Two thousand is about the size of the London Stock Exchange, 609 00:30:26,640 --> 00:30:29,080 Speaker 1: which by the way, went from four thousand to two thousand. 610 00:30:29,240 --> 00:30:34,160 Speaker 1: So our stock exchanges are shrinking, not in terms of valuations, 611 00:30:34,160 --> 00:30:37,720 Speaker 1: but in terms of the number of public companies, meaning 612 00:30:37,760 --> 00:30:42,840 Speaker 1: that the remaining companies have higher and higher market capitalizations 613 00:30:42,880 --> 00:30:46,800 Speaker 1: and it's very difficult for young, innovative, growing companies to 614 00:30:46,880 --> 00:30:47,400 Speaker 1: go public. 615 00:30:49,080 --> 00:30:50,800 Speaker 3: Can we think about this, Eric, through the lens of 616 00:30:50,800 --> 00:30:53,560 Speaker 3: a case study, If you don't mind, I think about 617 00:30:53,560 --> 00:30:58,760 Speaker 3: Elon Musk Inc. You know, he's documented the challenges of 618 00:30:58,840 --> 00:31:04,240 Speaker 3: being a public company CEO of Tesla, and if you, 619 00:31:04,440 --> 00:31:08,640 Speaker 3: by comparison, look at his private companies SpaceX, xai X, 620 00:31:08,800 --> 00:31:11,560 Speaker 3: the company formerly known as Twitter. Many would argue that 621 00:31:11,640 --> 00:31:15,280 Speaker 3: he's able to innovate with more freedom because he's free 622 00:31:15,400 --> 00:31:20,400 Speaker 3: of the responsibility or scrutiny or even the transparency required 623 00:31:20,400 --> 00:31:23,160 Speaker 3: of being a public company. What would your response be 624 00:31:23,280 --> 00:31:26,640 Speaker 3: to that case study? In that line of argument, I 625 00:31:26,680 --> 00:31:27,280 Speaker 3: would say. 626 00:31:27,120 --> 00:31:31,640 Speaker 1: That Elon is pretty distinct and remarkable by himself, and 627 00:31:31,680 --> 00:31:33,880 Speaker 1: that he's been able to raise billions of dollars in 628 00:31:33,920 --> 00:31:37,400 Speaker 1: the private market for his companies and stay private a 629 00:31:37,440 --> 00:31:41,080 Speaker 1: lot longer. This is not within the reach of most 630 00:31:41,520 --> 00:31:46,120 Speaker 1: most private companies. Most private companies are able to raise 631 00:31:46,240 --> 00:31:48,600 Speaker 1: you know, in the tens of millions or hundreds of 632 00:31:48,680 --> 00:31:53,640 Speaker 1: millions at most, but to have access to billion dollars 633 00:31:53,680 --> 00:31:56,560 Speaker 1: two billion dollars in capitalization, you need the public market 634 00:31:56,600 --> 00:32:01,360 Speaker 1: for this. So when when when Elon's company these go public, 635 00:32:01,680 --> 00:32:05,560 Speaker 1: they're already pretty substantial companies, and so that's not the norm. 636 00:32:05,640 --> 00:32:06,040 Speaker 6: The norm. 637 00:32:06,200 --> 00:32:08,880 Speaker 1: What we're looking for is the ability to have public 638 00:32:08,880 --> 00:32:13,200 Speaker 1: companies being capitalized around one to five billion dollars. That's 639 00:32:13,240 --> 00:32:15,840 Speaker 1: where there is almost no IPOs and this is where 640 00:32:16,040 --> 00:32:18,520 Speaker 1: this is kind of the point of entry. If you 641 00:32:18,880 --> 00:32:21,800 Speaker 1: let's take the example of n Video and Video went 642 00:32:21,880 --> 00:32:25,440 Speaker 1: public in the late nineteen nineties at a market cap 643 00:32:25,600 --> 00:32:27,360 Speaker 1: of about six hundred million dollars and thet's say that 644 00:32:27,360 --> 00:32:30,680 Speaker 1: that's about the billion dollars in today's money. That company 645 00:32:30,720 --> 00:32:34,760 Speaker 1: now is worth almost three trillion dollars. So a remarkable 646 00:32:34,880 --> 00:32:38,960 Speaker 1: rise and a lot of a lot of the public shareholders, 647 00:32:38,960 --> 00:32:41,840 Speaker 1: the people who were able to buy those shares in 648 00:32:41,920 --> 00:32:44,120 Speaker 1: the early days that have become if they kept them, 649 00:32:44,840 --> 00:32:47,560 Speaker 1: have become very, very rich. That's the kind that's the 650 00:32:47,600 --> 00:32:49,000 Speaker 1: kind of momentum that we're looking for. 651 00:32:49,720 --> 00:32:53,400 Speaker 2: But therefore, if it's regulation that stifled, it is it 652 00:32:53,680 --> 00:32:56,240 Speaker 2: less regulation that's needed. And therefore, how do you protect 653 00:32:56,280 --> 00:32:58,000 Speaker 2: an investor base with less regulation. 654 00:32:59,640 --> 00:33:03,320 Speaker 1: Well, it's going to be judicious regulation, you know. The 655 00:33:03,440 --> 00:33:07,360 Speaker 1: the the tipping point really was the Sobbing Socksley Act 656 00:33:07,440 --> 00:33:12,160 Speaker 1: of two thousand and two. A lot of smaller public 657 00:33:12,200 --> 00:33:16,720 Speaker 1: companies were forced to either dealist or merge or go 658 00:33:16,960 --> 00:33:20,960 Speaker 1: or go private given the burdens imposed by the by 659 00:33:21,040 --> 00:33:24,720 Speaker 1: socks By that but that particular act, So this, in 660 00:33:24,760 --> 00:33:26,840 Speaker 1: my mind, this needs to be reviewed. Do we really 661 00:33:26,880 --> 00:33:30,320 Speaker 1: need all of these controls or these internal controls. You know, 662 00:33:30,360 --> 00:33:34,719 Speaker 1: we're assuming, we're kind of assuming that people go public, 663 00:33:34,800 --> 00:33:38,720 Speaker 1: are have something to hide, have have you know, bad 664 00:33:38,760 --> 00:33:42,880 Speaker 1: intentions of sorts. We need to go back to uh, 665 00:33:42,960 --> 00:33:47,440 Speaker 1: you know a place where we we we allowed uh capitalism. 666 00:33:47,520 --> 00:33:50,840 Speaker 3: Yes, Eric, I just were pushed back on that slightly. 667 00:33:50,880 --> 00:33:53,200 Speaker 3: I mean, one reason that it's such a privilege to 668 00:33:53,680 --> 00:33:56,680 Speaker 3: host this show, Caroline, is that we come across all 669 00:33:56,760 --> 00:34:00,960 Speaker 3: kinds of founders who dream of taking their technology startup 670 00:34:01,000 --> 00:34:04,760 Speaker 3: public because of the prestige or because it gives their 671 00:34:04,800 --> 00:34:08,239 Speaker 3: staff liquidity, who may be long serving. You know, in 672 00:34:08,320 --> 00:34:11,680 Speaker 3: many instances that that's the dream, and it's still intact. 673 00:34:12,200 --> 00:34:14,960 Speaker 3: You know, you're an investor and you're part of this ecosystem. 674 00:34:15,040 --> 00:34:17,880 Speaker 3: Do you not recognize that still being a part of 675 00:34:17,920 --> 00:34:18,840 Speaker 3: the dream. 676 00:34:19,360 --> 00:34:19,880 Speaker 6: Very much so. 677 00:34:20,560 --> 00:34:24,000 Speaker 1: It's it's it's in some cases almost their only dream, right, 678 00:34:24,000 --> 00:34:27,759 Speaker 1: that's that's your exit. So if you let's take a 679 00:34:27,800 --> 00:34:31,240 Speaker 1: typical company in a private portfolio of Cetera's mind. Company 680 00:34:31,360 --> 00:34:35,000 Speaker 1: does one hundred million dollars in annual recurring revenues, you know, 681 00:34:35,120 --> 00:34:39,319 Speaker 1: has a grows thirty to fifty percent a year, has 682 00:34:39,400 --> 00:34:42,680 Speaker 1: ibidah of about you know, twenty million dollars. Again, I'm 683 00:34:42,760 --> 00:34:47,000 Speaker 1: using a general case, and they want to go public, 684 00:34:47,080 --> 00:34:49,680 Speaker 1: So what's going to happen? They the cost of going 685 00:34:49,760 --> 00:34:51,719 Speaker 1: public is going to cost them ten to fifty million 686 00:34:51,760 --> 00:34:55,200 Speaker 1: dollars a year, right, so that's over half of their abida. 687 00:34:55,560 --> 00:34:58,360 Speaker 1: So suddenly the valuation that they might command in the 688 00:34:58,360 --> 00:35:01,239 Speaker 1: public market is way then it should be as a 689 00:35:01,239 --> 00:35:03,880 Speaker 1: result of this. So there's plenty of companies in that 690 00:35:04,040 --> 00:35:07,919 Speaker 1: situation who are would like to go public. They're they've 691 00:35:07,920 --> 00:35:10,680 Speaker 1: been in business for ten years or more. There their 692 00:35:11,080 --> 00:35:14,840 Speaker 1: employees need that liquidity for their for their own equity, 693 00:35:15,440 --> 00:35:18,960 Speaker 1: but it's not really possible for them to do so. 694 00:35:19,080 --> 00:35:21,799 Speaker 3: Eric Hippo, Managing partner Larry Hippo. I can say with 695 00:35:21,840 --> 00:35:25,480 Speaker 3: certainly that Caroline and I both followerly enjoyed that conversation. 696 00:35:25,600 --> 00:35:25,960 Speaker 6: Thank you. 697 00:35:34,320 --> 00:35:37,400 Speaker 3: The Chinese court dismissed the case filed by a local 698 00:35:37,440 --> 00:35:41,880 Speaker 3: consumer against Apple's commission and fees for purchases via its 699 00:35:41,920 --> 00:35:44,960 Speaker 3: app store, granting the US company some reprieve as it 700 00:35:45,000 --> 00:35:48,600 Speaker 3: faces growing scrutiny around the world over its practices. 701 00:35:48,800 --> 00:35:50,720 Speaker 6: Bloomberg's Mark German is here. 702 00:35:50,520 --> 00:35:52,840 Speaker 3: With more Mark give US the details of this specific 703 00:35:52,920 --> 00:35:54,640 Speaker 3: case and why it's important. 704 00:35:55,760 --> 00:36:00,560 Speaker 14: Yeah, a consumer in China sued Apple locally over the 705 00:36:00,560 --> 00:36:03,440 Speaker 14: company's thirty percent are up to thirty percent take rate 706 00:36:03,520 --> 00:36:08,640 Speaker 14: on applications, saying that this stifles competition. This is the 707 00:36:08,680 --> 00:36:11,480 Speaker 14: same thirty percent. This is the same situation that we've 708 00:36:11,520 --> 00:36:15,160 Speaker 14: seen play out in the US, playing out in Australia 709 00:36:15,239 --> 00:36:19,320 Speaker 14: with Epic Games. Obviously, the European Union has been largely 710 00:36:19,360 --> 00:36:23,360 Speaker 14: against this, and this is a time where Apple actually got. 711 00:36:23,280 --> 00:36:23,920 Speaker 6: A rare win. 712 00:36:24,120 --> 00:36:28,240 Speaker 14: Apple has been fined in many places. They're losing portions 713 00:36:28,280 --> 00:36:30,840 Speaker 14: of lawsuits over this cut. The cut is at the 714 00:36:30,880 --> 00:36:34,880 Speaker 14: heart of a continued battle between Apple and a judge 715 00:36:34,920 --> 00:36:37,879 Speaker 14: in California, and this is something Apple is likely going to. 716 00:36:37,800 --> 00:36:38,560 Speaker 6: Have to shake up. 717 00:36:38,880 --> 00:36:41,400 Speaker 14: You've already seen Apple throughout the concept of the thirty 718 00:36:41,440 --> 00:36:43,719 Speaker 14: percent as part of the Digital Markets Act in the 719 00:36:43,719 --> 00:36:47,560 Speaker 14: European Union, and over time, I expect even more significant 720 00:36:47,600 --> 00:36:50,680 Speaker 14: changes to the Apple revenue share agreements in the US 721 00:36:50,719 --> 00:36:53,960 Speaker 14: and elsewhere as well as this legal pressure and pressure 722 00:36:54,000 --> 00:36:56,920 Speaker 14: from both consumers and developers continues to heat up to. 723 00:36:56,880 --> 00:37:00,319 Speaker 2: Heat up, and now China the outline, Madam, and great 724 00:37:00,320 --> 00:37:02,480 Speaker 2: wrap of it all well, thank you so much. Meanwhile, 725 00:37:02,520 --> 00:37:05,440 Speaker 2: let's go from Apple to Meta, because Matt has just 726 00:37:05,480 --> 00:37:09,240 Speaker 2: removed hundreds of Facebook accounts associated with covert influence campaigns 727 00:37:09,239 --> 00:37:12,680 Speaker 2: from China, Israel, Iran, Russia and other countries, some of 728 00:37:12,719 --> 00:37:16,920 Speaker 2: which used AI tools to generate disinformations, according to the 729 00:37:16,960 --> 00:37:18,320 Speaker 2: company's quarterly threat report. 730 00:37:18,600 --> 00:37:20,600 Speaker 4: Well, let's bring in the moos Kurt Wagner, and. 731 00:37:20,560 --> 00:37:24,480 Speaker 2: I'm assuming maybe they used AI to find this disinformation too. 732 00:37:26,040 --> 00:37:28,879 Speaker 15: Yeah, they use AI and algorithms to detect a lot 733 00:37:28,880 --> 00:37:30,440 Speaker 15: of this stuff and do it at the scale that 734 00:37:30,480 --> 00:37:32,719 Speaker 15: they need to for Facebook's products, right, I mean, they 735 00:37:32,719 --> 00:37:35,640 Speaker 15: have billions of users, billions of pieces of content. That's 736 00:37:35,680 --> 00:37:38,560 Speaker 15: not really something that they can necessarily do manually, although 737 00:37:38,600 --> 00:37:40,439 Speaker 15: they do have teams that then, you know, once things 738 00:37:40,440 --> 00:37:44,120 Speaker 15: are detected, kind of going and do some investigating manually. 739 00:37:44,160 --> 00:37:46,839 Speaker 15: But I think the important part here is that, you know, 740 00:37:46,880 --> 00:37:52,399 Speaker 15: we are seeing a little bit more generative AI content that. 741 00:37:52,400 --> 00:37:53,719 Speaker 6: Is being used to mislead people. 742 00:37:53,760 --> 00:37:55,719 Speaker 15: And I think that this is not a surprise, but 743 00:37:55,760 --> 00:37:58,560 Speaker 15: it's something as we head into the twenty twenty four election, 744 00:37:59,000 --> 00:38:01,880 Speaker 15: as we head into you know, important Senate races, this 745 00:38:01,960 --> 00:38:03,480 Speaker 15: is something that they're paying close attention to. 746 00:38:04,400 --> 00:38:08,920 Speaker 3: K when Meta finds this content, generative, AI driven or otherwise, 747 00:38:08,960 --> 00:38:10,480 Speaker 3: what do they do in response? 748 00:38:12,000 --> 00:38:13,959 Speaker 15: Yeah, their goal and they've been doing this for years 749 00:38:14,000 --> 00:38:15,400 Speaker 15: to be clear, this is not a brand new thing. 750 00:38:15,440 --> 00:38:18,440 Speaker 15: But their goal is to basically wipe out these organizations, 751 00:38:18,480 --> 00:38:21,400 Speaker 15: wipe out these you know, groups before they're able to 752 00:38:21,440 --> 00:38:23,839 Speaker 15: gain any kind of traction. They've gotten very good at 753 00:38:23,840 --> 00:38:26,920 Speaker 15: doing that since twenty sixteen election, you may remember. And 754 00:38:27,040 --> 00:38:29,280 Speaker 15: so most of the time when they're sharing this stuff, 755 00:38:29,280 --> 00:38:32,200 Speaker 15: you know, they're catching these things before it reaches a 756 00:38:32,320 --> 00:38:34,640 Speaker 15: huge audience. And I think that's the big key. Now, 757 00:38:34,640 --> 00:38:37,560 Speaker 15: sometimes things do you know, slip through, but ultimately they're 758 00:38:37,560 --> 00:38:40,200 Speaker 15: trying to find these groups and eliminate them before they 759 00:38:40,200 --> 00:38:41,600 Speaker 15: can reach some type of scale. 760 00:38:41,800 --> 00:38:43,879 Speaker 2: And Nick Claik, the President of Global Affairs, we you're saying, 761 00:38:43,880 --> 00:38:46,160 Speaker 2: you've got to detect, you've got to label this AI 762 00:38:46,280 --> 00:38:49,799 Speaker 2: generated content in particular kut Wagner, great breakdown as we 763 00:38:49,920 --> 00:38:53,239 Speaker 2: face what's more than thirty elections worldwide this year, and 764 00:38:53,400 --> 00:38:54,280 Speaker 2: look that does. 765 00:38:54,120 --> 00:38:56,680 Speaker 4: It for this rather busy edition of remote technology. 766 00:38:56,760 --> 00:39:00,319 Speaker 3: Yet, Yeah, there has been no stop in the flow 767 00:39:00,320 --> 00:39:02,480 Speaker 3: in the water of tech. Real quick, I won't be 768 00:39:02,480 --> 00:39:05,280 Speaker 3: on the show tomorrow. I'm away on a top secret mission. 769 00:39:05,920 --> 00:39:08,640 Speaker 3: Stay tuned. Check out the pod many of you do 770 00:39:08,800 --> 00:39:10,880 Speaker 3: on your way to work, way home from work, or 771 00:39:10,960 --> 00:39:14,239 Speaker 3: just hanging out Apple, Spotify, iHeart, and we published all 772 00:39:14,400 --> 00:39:17,680 Speaker 3: the Bloomberg platforms from San Francisco and New York City. 773 00:39:17,960 --> 00:39:25,520 Speaker 3: Queue the beautiful pictures. This is Bloomberg technology.