WEBVTT - Hedge Fund Exposure to Tech Hits Record High 0:00:01.800 --> 0:00:07.120 From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN. 0:00:07.440 --> 0:00:11.479 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:26.360 --> 0:00:30.280 Welcome to Bloomberg Technology. I'm Caroline Hyde live from New 0:00:30.360 --> 0:00:31.560 York and. 0:00:31.560 --> 0:00:34.840 I'm Ed Loudlow in San Francisco. This is Bloomberg Technology. 0:00:35.400 --> 0:00:35.919 Coming up. 0:00:36.080 --> 0:00:38.720 We are looking at hedge fund exposure to technology. 0:00:39.080 --> 0:00:40.479 It's hitting a record high. 0:00:40.640 --> 0:00:43.479 We get to the Outlook for Tech investing from Kristina 0:00:43.520 --> 0:00:45.680 Clark Barclay's Plus. 0:00:45.680 --> 0:00:48.640 We hear from YouTube CEO Neil Mohen on his plans 0:00:48.680 --> 0:00:54.400 to make the video platform even bigger, and we sit 0:00:54.520 --> 0:00:54.880 down with. 0:00:54.880 --> 0:00:57.680 The CEO of Ring for her first broadcast. 0:00:57.200 --> 0:01:01.240 Interview as a connected camera company gets a new mission statement. 0:01:01.680 --> 0:01:03.240 But Ed first, we check in on. 0:01:03.200 --> 0:01:06.800 These markets and we are struggling with a macropacked picture 0:01:06.959 --> 0:01:09.639 right now. We've course seeing a wall of money coming 0:01:10.080 --> 0:01:12.319 well from a supply side to the bond market. We 0:01:12.400 --> 0:01:14.480 have a big auction for the seven year debt. We're 0:01:14.480 --> 0:01:17.880 seeing forty four billion dollars. And remember auction appetite just 0:01:17.920 --> 0:01:19.320 wasn't that great for the last. 0:01:19.160 --> 0:01:19.840 Couple of days. 0:01:19.959 --> 0:01:22.040 So we're seeing Nasdaq just being pulled down as yields 0:01:22.040 --> 0:01:24.319 push higher, the sucks that sounder in Europe also down 0:01:24.319 --> 0:01:25.120 by a percentage point. 0:01:25.120 --> 0:01:25.920 It's notable though that. 0:01:26.000 --> 0:01:28.120 Nasdaq is boiltcing off of its lows. We're off down 0:01:28.440 --> 0:01:30.080 just three tenths of a percent. It's actually the best 0:01:30.080 --> 0:01:32.720 performing major benchmark here in the United States. So there's 0:01:32.760 --> 0:01:35.280 really other industry groups that runder pressure today. And as 0:01:35.319 --> 0:01:37.000 they say that seven year yield just picking up some 0:01:37.040 --> 0:01:39.280 five basis points four point six to two. We're seeing 0:01:39.280 --> 0:01:41.360 the longer end sell off harder move on though, And 0:01:41.400 --> 0:01:43.080 I want to give us the risk appetite a choice. 0:01:43.080 --> 0:01:46.080 When it comes to the tech world, Crypto also under 0:01:46.080 --> 0:01:48.680 pressure a little bit today. Bitcoin just to the downside, 0:01:48.720 --> 0:01:50.560 but not by March only a percentage point that we're 0:01:50.600 --> 0:01:53.680 sixty seven five hundred is currently where we trade. But look, 0:01:53.720 --> 0:01:55.920 there are some cautious sentiment out there at the moment. 0:01:56.000 --> 0:01:56.840 Ed what are you looking at them? 0:01:56.840 --> 0:01:59.000 On the micro So I'm looking. 0:01:58.800 --> 0:02:02.600 At the US listed share of BYD the ev maker. 0:02:03.000 --> 0:02:05.640 It's actually a pretty big story coming out of China. 0:02:05.760 --> 0:02:09.760 They have announced a hybrid drive train that is capable 0:02:09.800 --> 0:02:13.440 of doing more than twelve hundred miles or two thousand 0:02:13.480 --> 0:02:18.040 kilometers on a single charge or single fill of the tank. 0:02:18.080 --> 0:02:20.880 It's a hybrid drive train, and it's really continued to 0:02:20.960 --> 0:02:24.240 boost BYD's US listed shares. It's got a lot of 0:02:24.240 --> 0:02:27.359 people talking on social media. Check out Bloombo's coverage out 0:02:27.360 --> 0:02:30.200 of Hong Kong and learn more about what byd is doing. 0:02:30.440 --> 0:02:32.799 The other big mover here in the United States is Apple. 0:02:32.840 --> 0:02:35.560 Apple up more than a percentage point for most of 0:02:35.600 --> 0:02:39.880 the session. WWDC invites went out yesterday, I got mine. 0:02:40.160 --> 0:02:42.960 But the big news is also out of China. A 0:02:43.080 --> 0:02:46.440 court in China has dismissed the case against Apple that 0:02:46.480 --> 0:02:49.800 a consumer had brought on the issue of app store 0:02:49.880 --> 0:02:53.399 fees and commissions, and in app fees and commissions. Later 0:02:53.400 --> 0:02:55.320 in the program, we're going to go to Bloombo's Mark German. 0:02:55.600 --> 0:02:58.040 It might sound like a familiar story because it's happening 0:02:58.080 --> 0:03:01.000 here in the United States too, this time the China 0:03:01.080 --> 0:03:02.000 side of that discussion. 0:03:02.080 --> 0:03:05.040 Caroline, Yeah, and just all of this in a picture 0:03:05.120 --> 0:03:07.960 of how big tech bohemos have been doing and performing 0:03:07.960 --> 0:03:09.600 at the moment. We know Apple's been under pressure for 0:03:09.639 --> 0:03:12.600 the last couple of months beginning of this year. Really, 0:03:12.639 --> 0:03:15.760 but hedge Fund's positioning more broadly, the exposure to US 0:03:15.840 --> 0:03:18.440 tech bohemos is we just had a new record high 0:03:18.480 --> 0:03:20.320 and of course that's downto in video in many ways, 0:03:20.360 --> 0:03:22.040 it's strong earnings report last week. 0:03:22.240 --> 0:03:24.120 It's all according to gorm Sexs Prime brokerage. 0:03:24.160 --> 0:03:26.280 Their report is also saying that the so called Magnificent 0:03:26.320 --> 0:03:28.880 seven is now accounting close to twenty one percent of 0:03:28.919 --> 0:03:31.960 Hedge Fund's total net exposure to US single stocks. 0:03:32.160 --> 0:03:33.760 We want to get a sentiment check on. 0:03:34.040 --> 0:03:37.600 Big tech, on allocation and on companies going public. Kristin 0:03:37.680 --> 0:03:39.760 Roth de Clark is with US Global head of Technology 0:03:39.800 --> 0:03:43.640 Investment Banking at Barclay's, and you have so much wealth 0:03:43.680 --> 0:03:46.680 of experience and expertise within the investment banking market within 0:03:46.760 --> 0:03:50.360 technology in particular focus. You look at companies looking and 0:03:50.440 --> 0:03:53.360 I in going public. But what is ultimately the sentiment 0:03:53.520 --> 0:03:56.480 of access to growth companies in the US right now? 0:03:56.800 --> 0:03:59.720 Yeah, Look, there's been a real deretha of opportunity to 0:03:59.760 --> 0:04:02.520 invent in growth tech in the public markets. If you 0:04:02.600 --> 0:04:05.760 look just at the five hundred or so companies tech 0:04:05.760 --> 0:04:08.280 companies that are public right now that are two billion 0:04:08.280 --> 0:04:11.840 dollar market cap or more, there are only less than 0:04:11.880 --> 0:04:14.280 thirty that are growing that have grown thirty percent in 0:04:14.280 --> 0:04:16.839 the last year, and so the opportunity to invest in 0:04:16.880 --> 0:04:20.560 growth isn't really there necessarily in the public market. Their 0:04:20.600 --> 0:04:24.159 bid for IPOs is there from the investor side, but 0:04:24.240 --> 0:04:29.120 we haven't seen that translate into much activity this year, 0:04:29.400 --> 0:04:33.120 partially because of the rate environment and investors' corporates are 0:04:33.120 --> 0:04:38.080 looking more to twenty twenty five as a year of optimism, 0:04:38.120 --> 0:04:40.159 I think in the new issue market. 0:04:39.920 --> 0:04:42.480 And we add that context of the day with yields 0:04:42.560 --> 0:04:45.240 just pushing higher for longer, whether it's in Europe as well. 0:04:45.279 --> 0:04:48.640 We see German bond yields pushing higher as it looks 0:04:48.720 --> 0:04:51.680 like inflation is hard to curtail. But is it just 0:04:51.800 --> 0:04:54.960 the rate environment? Is there also element of political issues? 0:04:55.040 --> 0:04:56.800 Is that why twenty twenty five is going to really 0:04:56.800 --> 0:04:57.479 be the year to come? 0:04:57.640 --> 0:04:57.839 Yeah? 0:04:57.839 --> 0:05:00.279 I think at this point a lot of issuers are saying, 0:05:00.400 --> 0:05:03.279 you know, twenty twenty five will get through the election cycles, 0:05:03.600 --> 0:05:06.240 will get you to a place where we hopefully start 0:05:06.279 --> 0:05:09.240 to see rates come back down, so to kind of 0:05:09.480 --> 0:05:12.200 there are some issuers coming out in twenty twenty four 0:05:12.320 --> 0:05:15.279 and certainly getting a lot of attention from investors, but 0:05:15.440 --> 0:05:18.600 there's more optimism I think in twenty twenty five, and 0:05:18.640 --> 0:05:22.160 that's true for both growth companies but also super profitable 0:05:22.200 --> 0:05:25.280 businesses Inside private equity, A lot of the private equity 0:05:25.320 --> 0:05:29.320 firms are opting to do private minority stake sales to 0:05:29.800 --> 0:05:32.960 establish marks and get a little bit of liquidity instead 0:05:32.960 --> 0:05:34.279 of going to the IPO market. 0:05:34.279 --> 0:05:37.520 This year, christin good morning. Hello. 0:05:38.360 --> 0:05:40.640 I hear from a lot of founders, a lot of CEOs, 0:05:40.640 --> 0:05:42.560 a lot of people right now that are much more 0:05:42.600 --> 0:05:46.200 open minded to doing some M and A or even 0:05:46.600 --> 0:05:47.520 going private. 0:05:47.760 --> 0:05:48.400 Why is that. 0:05:49.160 --> 0:05:54.320 Yeah, take private activities increased significantly this year. It's up 0:05:54.320 --> 0:05:59.200 fifty percent in the tech industry from last year. Part 0:05:59.200 --> 0:06:02.520 of that is is an acceptance of kind of where 0:06:02.560 --> 0:06:05.320 we are from a valuation standpoint, But the other part 0:06:05.480 --> 0:06:08.640 is on the financing side. The last couple of years, 0:06:08.640 --> 0:06:13.839 the financing for LBOs have been driven by the direct 0:06:13.920 --> 0:06:16.520 lenders in the private credit market. We're now starting to 0:06:16.560 --> 0:06:19.960 see some of the more traditional funding sources in the 0:06:20.000 --> 0:06:24.120 broadly syndicated market available as well. 0:06:24.480 --> 0:06:28.600 Convertible issuance is interesting, take my word for it, it's interesting. 0:06:29.320 --> 0:06:33.480 One case study out this morning is Lenovo doing an 0:06:33.560 --> 0:06:37.240 arrangement with Saudi Arabia through one of its investment firms 0:06:38.000 --> 0:06:39.400 on very favorable terms. 0:06:39.400 --> 0:06:40.840 But it's also kind of a quid pro. 0:06:40.800 --> 0:06:43.520 Quo right where there's the financing side of it that 0:06:43.640 --> 0:06:46.760 Lenovo has to set up an R and D facility 0:06:46.800 --> 0:06:47.599 in that country. 0:06:48.240 --> 0:06:49.080 I've heard it elsewhere. 0:06:49.080 --> 0:06:51.279 In fact, I've heard of shareholders selling out of the 0:06:51.360 --> 0:06:54.920 stock buying up convertible notes in the same name. 0:06:55.200 --> 0:06:56.680 What are you seeing in that market? 0:06:56.760 --> 0:07:00.480 Well, the convertible market I think will be pretty active 0:07:00.520 --> 0:07:03.240 this year. There are a couple of interesting things that 0:07:03.320 --> 0:07:07.040 have changed with this higher for longer sentiment. One in 0:07:07.080 --> 0:07:12.760 particular is that we're now seeing issuers refinance floating rate 0:07:12.840 --> 0:07:16.520 debt with convertibles and they're saving up to fifty percent 0:07:16.600 --> 0:07:20.440 in interest expense with premiums that are one hundred percent, 0:07:20.680 --> 0:07:22.920 you know, So it's it makes a lot of sense. 0:07:22.960 --> 0:07:24.560 For some of these large cap issuers. 0:07:24.560 --> 0:07:27.040 The other thing we're seeing in the convertible market is 0:07:27.280 --> 0:07:31.440 large cap issuers doing a convert to repurchase shares, and 0:07:31.520 --> 0:07:36.800 so I think that the convert activity will only increase 0:07:36.920 --> 0:07:39.200 meaningfully this year, especially in this environment. 0:07:39.840 --> 0:07:43.000 Isn't it interesting that, ultimately, at a time where markets 0:07:43.040 --> 0:07:44.880 go from record high to record high there's less and 0:07:44.920 --> 0:07:47.440 less access to getting into the public market, and so 0:07:47.560 --> 0:07:49.480 much of the enthusiasm we talk about on a daily 0:07:49.480 --> 0:07:52.120 basis is in the private markets. There's also a lot 0:07:52.120 --> 0:07:54.520 of talk around M and A and I'm interested as 0:07:54.520 --> 0:07:56.320 to what you're anticipating there from. 0:07:56.320 --> 0:07:59.080 Even fewer publicly traded companies going forward. 0:07:59.280 --> 0:08:01.400 Yeah, so the take privates we've talked about, I think 0:08:01.440 --> 0:08:04.680 that we've also seen an increase in strategic activity in 0:08:04.720 --> 0:08:07.280 a meaningful way, and we'll continue to see that throughout 0:08:07.320 --> 0:08:10.400 the balance of the year. And then some of the 0:08:10.680 --> 0:08:13.120 smaller M and A that's happening tends to be a 0:08:13.120 --> 0:08:17.400 little you know, some of these early stage AI technology businesses, 0:08:17.640 --> 0:08:20.280 but they're scaling very rapidly, so that could over the 0:08:20.320 --> 0:08:24.520 next twelve, eighteen, twenty four months mean much larger scale 0:08:24.760 --> 0:08:28.840 M and A and adding to this already massive IPO backlog. 0:08:30.200 --> 0:08:33.080 Kristen, for all of the growth stage technology companies out 0:08:33.120 --> 0:08:34.880 there that are watching the show right now, be it 0:08:34.880 --> 0:08:39.000 the founders or staff, what's a good reason to go public? 0:08:39.480 --> 0:08:42.400 What is a good motivation to list your company? 0:08:42.640 --> 0:08:46.319 Well, the biggest reason right now the companies are opting 0:08:46.320 --> 0:08:49.400 to go public tends to be employee liquidity, you know, 0:08:49.480 --> 0:08:52.800 being private for a number of years, giving their employees 0:08:52.800 --> 0:08:57.079 an opportunity to start to find wealth in a publicly 0:08:57.120 --> 0:09:02.040 traded stock, or to validate a technology or the staying 0:09:02.120 --> 0:09:04.400 power of a private company. Some companies opt to go 0:09:04.480 --> 0:09:06.600 public because their customers are worried they're not going to 0:09:06.600 --> 0:09:08.360 be around, are not going to have long term funding, 0:09:08.800 --> 0:09:11.960 and so they, you know, from a reputational standpoint, want 0:09:11.960 --> 0:09:15.040 to be public. And the last is probably you know, 0:09:15.600 --> 0:09:21.160 the investors looking for liquidity, and again private equity is 0:09:21.920 --> 0:09:23.640 I think there will be a number of IPOs that 0:09:23.720 --> 0:09:26.080 come out over the next couple of years because we 0:09:26.120 --> 0:09:28.200 haven't seen a lot of activity out of private equity 0:09:28.200 --> 0:09:31.160 and returning capital to LPs. But right now they're you know, 0:09:31.240 --> 0:09:35.360 for the most part, finding liquidity in the private market 0:09:35.600 --> 0:09:39.360 more appealing than the IPO market, although we're seeing some 0:09:39.480 --> 0:09:43.160 really attractive assets coming public, just in a more limited basis. 0:09:44.080 --> 0:09:47.280 Kristin Roth to Clark Global Head of Technology Investment Banking. 0:09:47.280 --> 0:09:50.080 Above is terrific way to start the program. Thank you 0:09:50.120 --> 0:09:52.760 so much. We'll like to continue the conversation on the 0:09:52.800 --> 0:09:55.880 tech IPO landscape later in the hour with Eric Hippo 0:09:56.000 --> 0:10:01.080 of lera hippo. Really interesting conversation, interesting person, another interesting person, 0:10:01.240 --> 0:10:03.400 don't want to miss are coming up. In the first instance, 0:10:03.440 --> 0:10:05.920 we're going to hear from YouTube CEO Neil Mohen on 0:10:05.960 --> 0:10:08.640 the company's plans for expansion. 0:10:08.720 --> 0:10:10.600 Caroline some shares, some shares in. 0:10:10.600 --> 0:10:12.560 The public trading market that are still available. 0:10:12.600 --> 0:10:15.680 Salesforce absolutely just seeing it up about six tens percent. 0:10:15.760 --> 0:10:17.400 Unlike the rest of the market, we're higher. 0:10:17.880 --> 0:10:20.880 We are anticipating their earnings after the bell reporting their 0:10:21.000 --> 0:10:22.760 fiscal first quarter earnings. 0:10:22.920 --> 0:10:25.319 Look, how much are we able to see data. 0:10:25.040 --> 0:10:28.840 Cloud, which obviously helps organize corporate data for analytics for 0:10:28.880 --> 0:10:32.200 the all important AI space. How much is that going 0:10:32.280 --> 0:10:34.800 to help with their focus on margins as well? 0:10:35.040 --> 0:10:36.160 This is a Bluebogo technology. 0:10:45.920 --> 0:10:49.920 How YouTube became must watch TV. That's the latest episode 0:10:49.960 --> 0:10:53.640 of the Circuit where Bloomberger Regional's host Emily Chang sits 0:10:53.640 --> 0:10:57.800 down with YouTube CEO Neil Mohen about transforming the platform 0:10:58.080 --> 0:10:59.640 into the world's biggest streamer. 0:11:00.080 --> 0:11:06.040 To this, YouTube's really kind of its own sort of 0:11:06.120 --> 0:11:09.920 unique thing. We're not a social media platform, we're not 0:11:10.000 --> 0:11:13.280 traditional media in the sense, we're not linear television. We're 0:11:13.320 --> 0:11:15.880 really sort of our own thing. And so if we 0:11:15.920 --> 0:11:20.840 live up to that vision, we think we're really still 0:11:20.840 --> 0:11:24.280 in the early days of our growth story and fulfilling 0:11:24.280 --> 0:11:26.000 what our mission is, which is to give everyone a 0:11:26.120 --> 0:11:27.280 voice and show them the world. 0:11:27.520 --> 0:11:31.200 Based on Nielsen's latest data, YouTube is now by far 0:11:31.559 --> 0:11:35.679 the biggest streamer in the world, Netflix close behind, and 0:11:35.720 --> 0:11:40.720 then everybody else drops way down who Disney Max. But 0:11:40.800 --> 0:11:43.440 you don't get the awards or the critical acclaim. What 0:11:43.600 --> 0:11:45.040 more does YouTube have to prove? 0:11:45.360 --> 0:11:48.439 I do think that YouTube is getting recognized as that 0:11:48.480 --> 0:11:51.800 platform on television screens. We just surpassed a billion hours 0:11:51.840 --> 0:11:55.199 of watch time on living room screens, and you mentioned 0:11:55.200 --> 0:11:58.360 the Nielsen ratings. That is certainly something that when I 0:11:58.400 --> 0:12:01.720 speak to our advertising partner, the brands that look to 0:12:01.720 --> 0:12:04.840 build connections with consumers on our platform, they recognize that 0:12:04.960 --> 0:12:07.360 and they they see it as a place not just 0:12:07.600 --> 0:12:10.640 of this broad reach, you know, the number one streaming 0:12:10.679 --> 0:12:14.679 platform here in the US, but also reach that is 0:12:14.920 --> 0:12:18.160 engaged and from a brand's perspective, that is something that 0:12:18.200 --> 0:12:21.200 they are really recognizing. Like I said, it's still the 0:12:21.240 --> 0:12:23.680 early days of our journey, but I do start to 0:12:23.720 --> 0:12:25.880 hear that more and more from our partners. 0:12:26.160 --> 0:12:28.280 YouTube is printing money for Google, as I understand it, 0:12:28.360 --> 0:12:31.280 upwards of fifteen billion dollars a year. Where will the 0:12:31.320 --> 0:12:34.640 future revenue growth come from. Talk to us about that 0:12:34.720 --> 0:12:36.560 strategy and how it will play in. 0:12:36.880 --> 0:12:39.680 If you think about YouTube today compared to what YouTube 0:12:39.760 --> 0:12:42.720 was five years ago or certainly ten years ago, there 0:12:42.920 --> 0:12:45.959 are an order of magnitude more creators on our platform. 0:12:46.280 --> 0:12:50.320 We have a breadth of monetization offerings to support this 0:12:50.400 --> 0:12:55.040 creator economy, not just ads, but subscription business. You know 0:12:55.080 --> 0:12:58.679 that was the fifteen billion dollars subscription business across all 0:12:58.679 --> 0:13:01.720 of Google, but also direct to fan funding like channel 0:13:01.720 --> 0:13:04.800 memberships and things like that. So there's an enormous amount 0:13:04.840 --> 0:13:09.319 of scale and complexity in the ecosystem that requires us 0:13:09.360 --> 0:13:14.120 to rethink how we're going to support that creator ecosystem. 0:13:14.480 --> 0:13:17.800 YouTube CEO Neil Maan, along with Bloomberg's Emini Chang. You 0:13:17.800 --> 0:13:20.320 can catch the full episode of The Circuit tonight six 0:13:20.400 --> 0:13:21.679 pm right. 0:13:21.480 --> 0:13:22.800 Here on Blomberg Television. 0:13:29.920 --> 0:13:32.480 Let's talk about open AI because Helen Toner is a 0:13:32.520 --> 0:13:35.760 former board member of open ai and has actually said 0:13:35.800 --> 0:13:39.160 that the board didn't know about the original twenty twenty 0:13:39.200 --> 0:13:42.920 two launch of chat CBT until afterwards and that they 0:13:42.960 --> 0:13:46.000 only found out about it on well Twitter or x. 0:13:46.320 --> 0:13:49.680 Let's bring in Bloomberg's Seth Figman for more on what 0:13:49.800 --> 0:13:51.520 seems to be more. 0:13:51.320 --> 0:13:53.320 Discussion in the press coming from Helen Toner. 0:13:53.400 --> 0:13:56.079 She'd already written a piece with Tash as well another 0:13:56.080 --> 0:13:59.040 previous board member, about some of their worries about AI governance. 0:13:59.040 --> 0:13:59.840 This keeps building. 0:14:00.200 --> 0:14:01.959 Yeah, I mean it's remarkable. I have a former board 0:14:01.960 --> 0:14:04.280 member who's just going rogue at this point and really 0:14:04.320 --> 0:14:07.720 bashing the company, or at least its current leadership. The 0:14:08.160 --> 0:14:11.000 claim about Chatchibt is remarkable. Here's their biggest, best known 0:14:11.040 --> 0:14:13.440 product them they're saying that the Borg had no previous 0:14:13.480 --> 0:14:15.160 awareness that it was going to be launched. Now there's 0:14:15.160 --> 0:14:17.720 a caveat there. When they released this product, it was 0:14:17.760 --> 0:14:19.800 kind of a slow burn. Initially, people didn't know it 0:14:19.840 --> 0:14:21.520 was going to be as big as it became. But 0:14:21.560 --> 0:14:23.680 the bigger takeaway from this piece is that she's really 0:14:24.080 --> 0:14:27.000 gegging at the idea that there was a long series 0:14:27.040 --> 0:14:31.360 of times where they were either misinformed, uninformed, or felt 0:14:31.400 --> 0:14:35.200 like they were being manipulated by Sam Altman. And for 0:14:35.400 --> 0:14:37.560 months now it's been a guessing game in and out 0:14:37.600 --> 0:14:41.400 of Silicon Valley. What Precipititikea the ouster last year. This 0:14:41.520 --> 0:14:43.040 is really the most that we've seen so far that 0:14:43.080 --> 0:14:44.200 gets at that question. 0:14:44.960 --> 0:14:47.120 Seth As you know, I remember the weekend as Sam 0:14:47.120 --> 0:14:50.720 Outman's Ousta Helen Tona didn't pick up the phone. 0:14:51.600 --> 0:14:52.880 She hadn't had much to say. 0:14:52.920 --> 0:14:55.360 Then in the last twenty four hours or forty eight hours, 0:14:55.520 --> 0:14:57.960 she's had quite a lot to say. But the issue 0:14:57.960 --> 0:15:00.960 is the relationship with Sam. See something Sam Oltman told 0:15:00.960 --> 0:15:01.800 Bloomberg last year. 0:15:01.880 --> 0:15:06.000 Have listen, you have an incredible amount of power at 0:15:06.000 --> 0:15:10.560 this moment in time. Why should we trust you? 0:15:10.560 --> 0:15:13.680 You shouldn't, I think at this moment in time, like 0:15:13.960 --> 0:15:17.640 people deserve basically as much time asking questions as they want, 0:15:17.920 --> 0:15:19.680 and I'm trying to show up and do it. But 0:15:19.720 --> 0:15:25.440 more to that, like no one person should be trusted here. 0:15:25.680 --> 0:15:30.240 I don't have super voting shares, like I don't want them. 0:15:30.440 --> 0:15:32.280 The board can fire me. I think that's important. 0:15:34.480 --> 0:15:37.800 So at its route, there's Sam Altman pushing to commercialize 0:15:37.920 --> 0:15:40.560 the technology, and then there's different iterations of the board 0:15:40.560 --> 0:15:41.640 who seem unaware. 0:15:42.440 --> 0:15:43.960 I don't really know where to go next with that. 0:15:44.920 --> 0:15:46.960 Well, you're right again, it's pretty remarkable. I think there's 0:15:47.000 --> 0:15:49.400 been a drip drip from Helen. She's become a little 0:15:49.440 --> 0:15:52.320 bit more comfortable being public about her concerns. You're right, 0:15:52.400 --> 0:15:54.960 For months, we really couldn't get much detail. What we've 0:15:54.960 --> 0:15:57.880 heard was essentially that there was a long simmering build 0:15:57.960 --> 0:16:01.280 up of mistrust and miscommunication, and in her latest statements 0:16:01.280 --> 0:16:02.360 we're seeing a little bit more on that. 0:16:03.280 --> 0:16:07.240 The current context is that you can't trust Sam when 0:16:07.240 --> 0:16:10.520 it comes to discussions with celebrities when it comes to that, 0:16:10.680 --> 0:16:14.280 ultimately is what people are now realizing, rightly or wrongly. 0:16:14.800 --> 0:16:17.920 What was cast into the public discourse has of course 0:16:17.960 --> 0:16:21.160 been Scarlett Johnson and the calls or what time they happened, 0:16:21.240 --> 0:16:25.240 and AI really trying to just lay out the order 0:16:25.320 --> 0:16:28.400 of a currency of when they discussed using the voice 0:16:28.400 --> 0:16:30.600 at Scarlett u Hansson and when they're already talked to 0:16:30.640 --> 0:16:31.560 actors and actresses. 0:16:31.840 --> 0:16:33.560 But there is a feeling of distrust. 0:16:33.200 --> 0:16:34.960 Going I think so I think they're taking pains now 0:16:35.000 --> 0:16:36.720 go to be as transparent as they can be. What's 0:16:36.760 --> 0:16:38.960 funny is that for all of the tension that they've 0:16:38.960 --> 0:16:41.720 have at board members never cross a famous actress. I 0:16:41.720 --> 0:16:43.560 think that's where you're going to really lose the public. 0:16:44.360 --> 0:16:47.360 Seth Fiegerman. We'll see what the next response is from 0:16:47.360 --> 0:16:50.080 open Ai. Amid all of this, we thank him for 0:16:50.120 --> 0:16:52.920 walking us through it. Meanwhile, open Ai has actually got 0:16:52.960 --> 0:16:54.640 some competition, you know it, and one of them is 0:16:54.640 --> 0:16:57.480 from Francis mistral Ai, which has launched in early twenty 0:16:57.520 --> 0:17:00.160 twenty three as a European rival, but it's now eyeing. 0:17:00.400 --> 0:17:01.400 The United States. 0:17:01.640 --> 0:17:04.280 We're going in Blomberg's Matt Berg and for more and 0:17:04.480 --> 0:17:10.280 they're hiring a key member of talent, right. 0:17:10.280 --> 0:17:12.560 So this has been a major hire. And this is 0:17:12.600 --> 0:17:14.680 a really closely watched start up here in Europe, and 0:17:14.720 --> 0:17:19.960 there's really no precedence for company aside from maybe Spotify 0:17:20.119 --> 0:17:23.280 having becoming a global technology success out of Europe, and 0:17:23.320 --> 0:17:25.200 that seems to be ambision of Mistro at least that's 0:17:25.200 --> 0:17:26.639 what their investors are signaling. 0:17:26.720 --> 0:17:26.840 Right. 0:17:26.840 --> 0:17:30.879 There's reports that that in probably a less than fourteen months, 0:17:30.880 --> 0:17:33.479 they've now gone from zero to a company worth six billion, 0:17:33.840 --> 0:17:36.040 and so there's a lot of expectations and a pretty 0:17:36.080 --> 0:17:37.320 high evaluation they have to meet. 0:17:39.280 --> 0:17:41.920 Mark give me a sense of mistrual size and scale, 0:17:41.960 --> 0:17:44.960 Like we report on them a lot they're a little 0:17:44.960 --> 0:17:48.159 bit shy. They've been regulatory focuses in Europe. Tell me 0:17:48.200 --> 0:17:49.200 about the basics. 0:17:49.560 --> 0:17:52.160 Yes, the basics are pretty small. 0:17:52.240 --> 0:17:53.440 That's sort of thing that I mean. 0:17:53.480 --> 0:17:56.040 I think that from my sense it's probably a team 0:17:56.080 --> 0:17:58.240 of maybe around fifty at this point. I mean, it 0:17:59.160 --> 0:18:01.480 could be a little biggeran that, but but you know there, 0:18:01.720 --> 0:18:04.040 that's sort of their mo is that we are leaner, 0:18:04.359 --> 0:18:09.880 We're building these smaller, more agile AI models. They're open source. 0:18:10.920 --> 0:18:13.879 They're very at this point very close to the French 0:18:13.920 --> 0:18:16.760 government in a sense that one of their co founders 0:18:16.800 --> 0:18:19.520 and it's kind of their policy chief is the prior 0:18:19.680 --> 0:18:23.840 French Digital minister. Macrone has talked about supporting them. Last 0:18:23.840 --> 0:18:26.280 week I gave this really interesting comments about how he 0:18:26.400 --> 0:18:29.320 preferred that they would grow big on their own and 0:18:29.359 --> 0:18:32.200 remain independent. The sort of subtext there was, don't sell 0:18:32.320 --> 0:18:36.440 to a big tech American firm. 0:18:36.680 --> 0:18:39.320 The bag Smartberg in terrific reporting out of Yurope. We 0:18:39.400 --> 0:18:40.320 really appreciate it. 0:18:48.440 --> 0:18:51.400 Welcome back to BLIEMBG Technology. Ed Ludlow in San Francisco. 0:18:51.520 --> 0:18:52.560 I'm callin hid in New York. 0:18:52.640 --> 0:18:55.000 Quick check on your markets today because we are more 0:18:55.040 --> 0:18:58.040 and about born costs bonields rising. That's dragging some of 0:18:58.040 --> 0:19:00.399 the stock markets lower. Ashley the NASDA and then as 0:19:00.440 --> 0:19:03.720 that one hundred outperforming other key US benchmarks, but we 0:19:03.760 --> 0:19:06.040 are lower by four tens percent on the big tech 0:19:06.119 --> 0:19:09.160 benchmark of the nas that one hundred tenure yield as 0:19:09.200 --> 0:19:11.800 a thirtyer yield across the board. In fact, we're seeing 0:19:11.920 --> 0:19:14.359 born costs rising as we have another big auction forty 0:19:14.359 --> 0:19:15.159 four billion dollars a. 0:19:15.200 --> 0:19:16.080 Seven year deck coming. 0:19:16.440 --> 0:19:19.520 Will there be not as much demand as was hoped 0:19:19.840 --> 0:19:21.679 like we've seen in the previous two auctions. We're up 0:19:21.720 --> 0:19:23.879 six basis points bitcoin. On the downside, we're off by 0:19:23.960 --> 0:19:26.920 nine tens percent sixty seven thousand. Moving on though, as 0:19:26.920 --> 0:19:31.200 we try to mark through what is a slight tempering 0:19:31.359 --> 0:19:33.800 of risk appetite. The socks is one of the ones 0:19:33.840 --> 0:19:36.720 that underperforms the Philadelphia Semiconductor Index off by one and 0:19:36.720 --> 0:19:39.240 a half percent. Every single chip maker down, but that's 0:19:39.240 --> 0:19:41.280 because they've been rallying so hard in previous weeks. 0:19:41.280 --> 0:19:43.159 Maybe we've got a little bit of profit taking going on. 0:19:43.200 --> 0:19:45.520 Certainly the case for the Maderna, we're off by almost 0:19:45.520 --> 0:19:48.400 five percent, had a horrible day yesterday, but that's after 0:19:48.440 --> 0:19:51.320 it had a record winning streak of ten straight days 0:19:51.359 --> 0:19:54.000 of gains profit taking. This is a company also injecting 0:19:54.240 --> 0:19:57.800 generator of AI throughout its focus on healthcare. We're looking 0:19:57.880 --> 0:20:00.359 at Amazon actually one of the outperformers on the day. 0:20:00.359 --> 0:20:02.760 We're up three quarters of percent. Nice little headline there 0:20:02.760 --> 0:20:07.040 that they're once again expanding their partnership deal with Germany's 0:20:07.119 --> 0:20:10.240