WEBVTT - Intelligence Leaks and Twitter's Subscription Fees 0:00:01.480 --> 0:00:04.840 From the heart of where Innovation, money and power Collie 0:00:05.040 --> 0:00:09.760 in Silicon Valley, NBR. This is Bloomberg Technology with Caroline 0:00:09.840 --> 0:00:26.720 Hyde and Ed Ludlow. I'm Caroline Hyde at Bloomberg's world 0:00:26.760 --> 0:00:29.560 headquarters in New York. I'm d Ludlow in San Francisco. 0:00:29.600 --> 0:00:32.800 This is Bloomberg Technology coming up the White House, urging 0:00:32.920 --> 0:00:37.440 social media users and platforms to stop circulating classified documents 0:00:37.440 --> 0:00:40.120 as it works to clean up the biggest intelligence leak 0:00:40.479 --> 0:00:45.120 in decades. We'll discuss and Twitter now allowing users to 0:00:45.240 --> 0:00:48.520 charge subscription fees. We'll break down the move as competitors 0:00:48.520 --> 0:00:52.000 look to grab the social giants market share. And we'll 0:00:52.040 --> 0:00:55.200 hear from the CEO of Amazon Web Services as the 0:00:55.280 --> 0:00:58.720 company joins the race for artificial intelligence dominance. All that 0:00:59.240 --> 0:01:01.320 so much more going up. Let's get to it with 0:01:01.400 --> 0:01:04.560 Shinati Bassa, who who's there in early breaking all this 0:01:04.640 --> 0:01:07.160 bank news for us, but told to us about the 0:01:07.200 --> 0:01:10.360 Silicon Valley bank repercussions and really how sticky some of 0:01:10.360 --> 0:01:13.280 these deposits are likely to be. It's really interesting to 0:01:13.319 --> 0:01:16.959 see just the movement. JP Morgan posted a surprise increase 0:01:17.000 --> 0:01:20.720 in deposits after quarters of decreases now they say it's 0:01:20.760 --> 0:01:24.840 not necessarily a sticky phenomenon. They expect deposit outflows or 0:01:24.959 --> 0:01:27.839 deposit pressure really to continue, if you will, because interest 0:01:27.880 --> 0:01:30.039 rates are still going up. Money markets are still very 0:01:30.080 --> 0:01:33.000 attractive here. But when you look at it, they really 0:01:33.080 --> 0:01:35.919 did end up being a big beneficiary of what happened 0:01:35.920 --> 0:01:38.520 in the regional banking system in the last couple of months, 0:01:38.520 --> 0:01:41.160 if you will. Now remember P ANDC also reported today too, 0:01:41.319 --> 0:01:43.520 And the reason that's important is because people were really 0:01:43.520 --> 0:01:47.040 worried about other mid size regional banks, and the deposit 0:01:47.120 --> 0:01:49.760 number there was a little above what analysts expected. So 0:01:49.800 --> 0:01:52.800 as we think about the broader pressures after the wake 0:01:52.840 --> 0:01:55.880 of Silicon Valley Valley banks, real troubles that we've seen, 0:01:56.520 --> 0:01:59.280 our other banks still feeling any pressure, That's where I 0:01:59.320 --> 0:02:01.840 want to go your tweet, what is it? You said, Shinnali? 0:02:02.240 --> 0:02:05.560 What eight hundred Jamie? That's literally what happened after the 0:02:05.560 --> 0:02:07.960 class of Silicon Valley Bank. Isn't it to be fair? 0:02:08.240 --> 0:02:13.440 I stole that from John Farrow, But but it was charming, 0:02:13.520 --> 0:02:16.080 right because seriously they did go to JP Morgan and 0:02:16.320 --> 0:02:20.120 next week, remember Goldman Sachs and Morgan Stanley are reporting 0:02:20.160 --> 0:02:24.120 and presumably they would also have been beneficiaries, particularly Morgan 0:02:24.160 --> 0:02:26.639 Stanley that also looks to bank a lot of these 0:02:26.760 --> 0:02:30.079 as Silicon Valley startup founders, if you will. Ed remember 0:02:30.120 --> 0:02:32.000 we talked earlier in the week with Nishi Somaia over 0:02:32.040 --> 0:02:35.399 at Goldman Sacks, which really targeted a lending opportunity as well. 0:02:35.800 --> 0:02:38.240 JP Morgan said, net interest income is really going to 0:02:38.280 --> 0:02:41.760 expand very meaningfully. Of course, that is picking up some 0:02:41.800 --> 0:02:45.400 business that we're seeing from other firms getting out of 0:02:45.400 --> 0:02:48.720 the market, but also really interestingly here I find this 0:02:48.800 --> 0:02:51.120 to be a tech play, if you will. A lot 0:02:51.120 --> 0:02:53.480 of this net interest income is coming from credit cards. 0:02:53.720 --> 0:02:55.840 So if you think about the payments businesses, the credit 0:02:55.840 --> 0:02:59.560 card businesses, everything that's online, those are the things that 0:02:59.600 --> 0:03:03.040 are really facilitating any of the love you're seeing in 0:03:03.080 --> 0:03:05.519 the banking system. And this is what some point to 0:03:05.639 --> 0:03:07.920 Shnati Bassak on who can do big banks and fintech 0:03:07.919 --> 0:03:10.080 and wrap it all into a kind of a focus 0:03:10.120 --> 0:03:13.160 for us. Let's route it out with what's happening with 0:03:13.200 --> 0:03:15.960 First Republic, for example, at the moment, Shanani, because it's 0:03:16.120 --> 0:03:18.839 interesting actually under pressure, all people were worried about what's 0:03:18.880 --> 0:03:21.080 to come in terms about flows and deposits. Until that 0:03:21.160 --> 0:03:24.280 question is cleared up around First Republic and First Republic remember, 0:03:24.400 --> 0:03:27.560 as we've been talking about has a big California tie. 0:03:27.600 --> 0:03:30.639 They have really banks a lot of the wealthy in California. 0:03:30.960 --> 0:03:33.440 Then there are a lot of questions about how far 0:03:33.480 --> 0:03:35.680 they've gone in places other banks might not have been 0:03:35.720 --> 0:03:38.840 able to, what is left behind as they're under pressure. 0:03:39.120 --> 0:03:41.880 Until they report. Until that's out of the way, it's 0:03:41.960 --> 0:03:44.760 hard to say that the system isn't all clear, but 0:03:44.880 --> 0:03:47.720 it is a promising sign that we're seeing the bank 0:03:47.800 --> 0:03:51.280 earnings start off very cleanly today. But we do still 0:03:51.360 --> 0:03:53.880 have two weeks ahead of us here where we're going 0:03:53.960 --> 0:03:56.120 to get a lot of questions still about the client 0:03:56.160 --> 0:03:58.640 bases that we're talking about here and what kind of 0:03:58.680 --> 0:04:01.560 pressure that the bankings on the heels of those pins 0:04:01.600 --> 0:04:05.400 might feel. I used to be one eight hundred Greg Becker, 0:04:05.800 --> 0:04:08.600 one eight hundred Jamie Diamond. Right now is so interesting 0:04:08.640 --> 0:04:11.520 to see the net result of that SPB collapse Bloomberg 0:04:11.560 --> 0:04:13.960 Shnali Bassett, thank you so much. Let's go over to 0:04:14.040 --> 0:04:17.239 DC in Washington. The White House is urging social media 0:04:17.279 --> 0:04:20.880 companies to prevent the circulation of information that could hurt 0:04:21.000 --> 0:04:24.960 national securities. It works to clean up that intelligence league. 0:04:25.200 --> 0:04:28.240 Joining us now from always Bloomberg's NAT Security editor Nick 0:04:28.240 --> 0:04:31.479 Wadham's Nick the b gub article lead says it all, 0:04:31.600 --> 0:04:35.040 how did a twenty one year old with basically just 0:04:35.080 --> 0:04:38.440 a driving license and eighteen months experience get access to 0:04:38.520 --> 0:04:43.159 that data? We've had an arrest. What are the latest details. Well, 0:04:43.480 --> 0:04:49.400 he's been charged now with the unlawful retention and dissemination 0:04:49.680 --> 0:04:53.880 of classified information. I mean, the big question here is 0:04:54.040 --> 0:04:57.479 what the government can really do. And that warning from 0:04:57.480 --> 0:05:01.240 the White House, Hey, if you see classif information online, 0:05:01.320 --> 0:05:04.800 don't share it sort of gets to what a struggle 0:05:04.800 --> 0:05:07.039 they're really going to have. I mean, the issue here 0:05:07.120 --> 0:05:09.960 is that he went on a private chat on discord 0:05:10.240 --> 0:05:13.320 and started spreading this stuff around to his friends, and 0:05:13.360 --> 0:05:15.400 then someone in one of those chats took it and 0:05:15.760 --> 0:05:18.839 amplified it more broadly on the wider net. And so 0:05:18.839 --> 0:05:22.360 far the administration is making clear that it has not 0:05:22.440 --> 0:05:25.440 shown it really knows how to clamp down on something 0:05:25.480 --> 0:05:27.440 like that, and it's going to have a really hard 0:05:27.440 --> 0:05:32.000 time doing so. The responsibility Nick, that was cooled on 0:05:32.720 --> 0:05:36.880 for social media platforms themselves, coming from on the press 0:05:36.920 --> 0:05:39.480 officer over at the White House. Do you think that 0:05:39.480 --> 0:05:43.960 that's in any way or reality. Well, I mean, Discord 0:05:44.000 --> 0:05:47.680 obviously did cooperate with the administration on this, as have 0:05:47.880 --> 0:05:52.360 other companies in the past. So I think in large 0:05:52.400 --> 0:05:55.440 part these companies do not want to have top secret, 0:05:55.560 --> 0:05:59.680 classified information distributed on their platforms. But you know, it 0:05:59.720 --> 0:06:02.640 gets to that broader question again, Okay, what can they do? 0:06:02.720 --> 0:06:05.400 This was a private chat, It was a relatively small 0:06:05.440 --> 0:06:08.920 group of people by all accounts. He was putting information 0:06:09.000 --> 0:06:12.719 on there as far back as last December and then 0:06:12.800 --> 0:06:16.760 switched over from just transcribing information to actually posting the documents. 0:06:17.000 --> 0:06:19.320 So what can they do? How closely do they need 0:06:19.360 --> 0:06:22.520 to be watching these chats? And that's something companies are 0:06:22.520 --> 0:06:24.400 going to have to grapple with, especially with this new 0:06:24.440 --> 0:06:28.640 pressure from the administration. The FBI released an affidavit Friday, 0:06:28.640 --> 0:06:32.240 and I just want to point out that Discord, the platform, 0:06:32.320 --> 0:06:35.400 the social media company, was not named in the affidavit, 0:06:35.680 --> 0:06:39.040 but they did provide the FBI with the records requested 0:06:39.279 --> 0:06:42.159 because they were ordered to do so by the court. 0:06:42.800 --> 0:06:45.280 I just want to go back to the individual involved, Nick, 0:06:45.360 --> 0:06:48.479 if we can, I mean, what happens here. They still 0:06:48.520 --> 0:06:51.240 trying to find out exactly the breadth of information that 0:06:52.360 --> 0:06:54.840 was put out there by him, What are kind of 0:06:54.880 --> 0:06:58.760 illegal procedures going forward. Well, I mean, if you look 0:06:58.760 --> 0:07:03.520 at the arrangement and the charging documents themselves, it appears 0:07:03.560 --> 0:07:08.200 to be fairly clear cut in terms of what he's 0:07:08.240 --> 0:07:11.040 accused of doing and the evidence they have against him. 0:07:11.080 --> 0:07:14.760 That all looks, you know, from a layman's perspective, pretty 0:07:14.840 --> 0:07:16.960 daring strong. But the issue I think that's going to 0:07:17.040 --> 0:07:20.520 happen now is, Okay, how many documents actually were there? 0:07:20.520 --> 0:07:22.800 You know, there are several dozen that we know about 0:07:22.880 --> 0:07:25.440 I think about one hundred now, But there's also this 0:07:25.480 --> 0:07:28.160 whole other element where early on, as we now know, 0:07:28.560 --> 0:07:32.480 he was actually typing out information from previous documents and 0:07:32.640 --> 0:07:35.640 putting that out to his friends, and then decided that 0:07:35.680 --> 0:07:37.240 was too much of a hassle, so he was just 0:07:37.280 --> 0:07:39.720 going to photograph documents and start posting them because that 0:07:39.800 --> 0:07:42.160 was easier and quicker to do. So the big question 0:07:42.280 --> 0:07:45.680 is we still don't know the full extent of what 0:07:45.840 --> 0:07:48.640 was actually leaked. The documents we know about so far 0:07:48.680 --> 0:07:52.800 are extremely damaging, but I think investigators really are going 0:07:52.840 --> 0:07:55.160 to be honing in on that question of whether that's 0:07:55.240 --> 0:07:57.600 it or whether there's much more damage out there that 0:07:57.640 --> 0:08:00.640 they don't yet know about. We thank you, we can 0:08:00.680 --> 0:08:03.360 calling you on these moments. Meanwhile, let's stick with where 0:08:03.440 --> 0:08:06.080 Nick is Washington. Just a little reminder for you, go 0:08:06.160 --> 0:08:08.000 to life. Go if you're like enough to have a terminal. 0:08:08.120 --> 0:08:12.440 Bloomberg's valence is Tom Keene. He's currently on stage interviewing 0:08:12.520 --> 0:08:15.720 a whole raft of central bankers of economists. As you 0:08:15.720 --> 0:08:19.200 see Olivia Bronchard there at the moment. I'm Squito Governorth 0:08:19.240 --> 0:08:23.040 as well back of England Cia ten yo. So just 0:08:23.200 --> 0:08:27.240 stick with this and also worktability. I mean we ever 0:08:27.320 --> 0:08:29.600 sends a very sharp changes in your Twitter. All right, 0:08:29.680 --> 0:08:33.600 coming up? Lauren Schipper hosted the Upload podcast. It's going 0:08:33.640 --> 0:08:36.720 to join us to discuss Twitter's move to allow users 0:08:37.160 --> 0:08:40.319 to start charging for content. We'll get more on the 0:08:40.400 --> 0:08:59.440 social media's landscape. Next. This is Bloomberg. Twitter is now 0:08:59.480 --> 0:09:02.720 allowing you users to charge for access to their own content. 0:09:02.920 --> 0:09:06.560 CEO Elon Musk tweeted the announcement, of course on the platform, 0:09:06.920 --> 0:09:11.120 and even said he'll offer amas for his subscribers. Joining 0:09:11.200 --> 0:09:14.319 us for the latest details Bloomberg. Sarah Freyer, you and 0:09:14.440 --> 0:09:16.959 I discussed this just as the tweet came out, and 0:09:17.080 --> 0:09:22.120 we thought, oh, that's interesting. Essentially, for a twelve month period, 0:09:22.840 --> 0:09:28.040 they are offering interesting terms to content creators. Well, they're saying, 0:09:28.160 --> 0:09:30.640 you're going to get all the money that you make. 0:09:31.559 --> 0:09:34.079 The only cut that we'll have to take from it 0:09:34.200 --> 0:09:36.319 is the money we paid of the app store for 0:09:36.520 --> 0:09:39.320 the first twelve months. After that, who knows it could 0:09:39.360 --> 0:09:42.720 become part of the Twitter's revenue proposition. But in twelve months, 0:09:42.760 --> 0:09:44.760 you can build a community. You could do a lot 0:09:45.360 --> 0:09:48.280 a lot of building of that business and then see 0:09:48.360 --> 0:09:51.719 what happens. I just wonder if if Twitter is a 0:09:51.800 --> 0:09:55.719 place where people feel like they can get that stability 0:09:55.880 --> 0:10:00.199 because there has been so much, so much tension, so 0:10:00.280 --> 0:10:04.920 much tumult between Twitter and its creators um since Must 0:10:04.960 --> 0:10:07.920 took over there, they're losing their their blue check marks. 0:10:08.000 --> 0:10:12.239 That it's become more confusing how to figure out the algorithm. 0:10:12.760 --> 0:10:14.600 So there are a lot of factors consider if you're 0:10:14.600 --> 0:10:16.800 going to build that business. And Sarah, what's interesting is 0:10:16.920 --> 0:10:19.679 slowly but surely sub Stock and Twitter seem to be 0:10:19.760 --> 0:10:23.000 trying to move into one another, and that is that's 0:10:23.040 --> 0:10:25.560 what the sub Stack CEO said we should expect when 0:10:25.600 --> 0:10:27.800 he was on your program recently. I mean, this is 0:10:28.080 --> 0:10:31.360 this is the thing is you know, when you're trying 0:10:31.400 --> 0:10:34.080 to build new revenue models, you're you're going to build 0:10:34.120 --> 0:10:37.040 in all directions, and advertising is not working for Twitter 0:10:37.200 --> 0:10:38.800 right now. They have to come up with something else. 0:10:39.280 --> 0:10:42.359 So they're they're going to throw a lot of spaghetti 0:10:42.440 --> 0:10:46.000 on the wall in the next few weeks, months, years. 0:10:46.480 --> 0:10:49.480 We saw subscriptions here, but they also said you're going 0:10:49.520 --> 0:10:51.480 to start to be able to buy and trade stocks 0:10:51.559 --> 0:10:53.920 via Twitter. I mean, all sorts of ideas are going 0:10:53.960 --> 0:10:57.400 to be thrown at us. And in meanwhile, Twitter Blue 0:10:57.559 --> 0:11:01.160 their first idea in the sort of new money making category. 0:11:01.200 --> 0:11:03.760 It hasn't seemed to be doing so well. Only one 0:11:03.840 --> 0:11:06.920 percent of Twitter users actually I think less than one 0:11:07.000 --> 0:11:10.000 percent so far based on estimates, have signed out to 0:11:10.160 --> 0:11:12.880 pay eight dollars a month to Musk for that Satify 0:11:13.240 --> 0:11:15.280 breaking it down. We thank you so much of Bloomberg 0:11:15.320 --> 0:11:17.280 and letstick on all of this. Laurence Snipp has with 0:11:17.360 --> 0:11:20.120 US vice president of corporate Development and Jelly Smackets, a 0:11:20.160 --> 0:11:23.600 company actually focused on amplifying content creators. Lauren, you also 0:11:23.800 --> 0:11:26.439 host a create an upload podcast or previously rank created 0:11:26.480 --> 0:11:29.199 partnerships over it on the Artists formerly known as Facebook. 0:11:29.240 --> 0:11:32.079 And I'm interested, And do you think this will work? 0:11:32.160 --> 0:11:34.559 Will content creators that you try and amplify want to 0:11:34.640 --> 0:11:38.000 go via Twitter in this way? I mean, right now, no, 0:11:38.360 --> 0:11:40.920 I don't think it will work, mainly because I don't 0:11:41.000 --> 0:11:43.920 think this is a platform that creators can sort of trust, right, 0:11:44.040 --> 0:11:45.439 Like it was just you guys were just sort of 0:11:45.520 --> 0:11:48.080 talking about that, right. There's been so much tumult at 0:11:48.200 --> 0:11:51.839 Twitter in the past few months since Elan's taken over. 0:11:52.600 --> 0:11:55.160 If you look at the thread where Elon tweeted this, 0:11:55.600 --> 0:11:58.559 half of the comments on are talking about parts of 0:11:59.000 --> 0:12:01.960 Twitter that is broke, that are broken. And So if 0:12:02.040 --> 0:12:05.280 I'm a creator thinking about where to kind of launch 0:12:05.360 --> 0:12:08.320 a business, which effectively this is, I would be very 0:12:08.440 --> 0:12:11.760 suspect about doing that on Twitter. I mean, I just 0:12:11.840 --> 0:12:13.640 feel like you can't trust this product. I mean they've 0:12:13.679 --> 0:12:16.640 lost most of their employees and talk about security, talk 0:12:16.679 --> 0:12:20.040 about you know, just a reliability of a product. I 0:12:20.120 --> 0:12:22.120 would be very I would be as a creator, would 0:12:22.120 --> 0:12:24.200 be very reticent to do this on Twitter. Right now, 0:12:24.840 --> 0:12:26.559 I think this is a good opportunity to also talk 0:12:26.559 --> 0:12:30.280 about how the content creator ecosystem works, right that you 0:12:30.720 --> 0:12:33.679 need a following. And I guess a question I had 0:12:33.800 --> 0:12:36.560 is it does this move by Elon Musk bring content 0:12:36.640 --> 0:12:40.400 creators from other platforms like TikTok and YouTube where they 0:12:40.480 --> 0:12:43.839 already have an established following and may not have one 0:12:44.200 --> 0:12:48.520 on Twitter. I don't think this is compelling enough of 0:12:48.559 --> 0:12:51.000 an offer to bring people over to Twitter. What I 0:12:51.080 --> 0:12:53.679 think this is more about are the content creators on 0:12:53.840 --> 0:12:57.720 Twitter that have amassed huge followings, of which there are many, 0:12:58.120 --> 0:13:00.640 many of whom have built businesses off of that, just 0:13:00.760 --> 0:13:03.719 putting in elsewhere, And if I'm there, I'm struggling of like, 0:13:03.800 --> 0:13:05.800 oh my gosh, I've got all these followers here and 0:13:05.880 --> 0:13:07.800 now I can capitalize on that here. But I don't 0:13:07.840 --> 0:13:10.120 trust this product. Do I think this is bringing creators 0:13:10.160 --> 0:13:12.360 over to Twitter? No? I think there's other options to 0:13:12.800 --> 0:13:16.760 provide subscription Obviously, Patreon comes to mind. Even Meta has 0:13:16.800 --> 0:13:19.280 a subscription offering, So there's other places to build a 0:13:19.360 --> 0:13:23.280 subscription service. You know, Lauren with your jelly Smack corporate 0:13:23.320 --> 0:13:26.360 development hat on, create an upload podcast hat or even 0:13:26.440 --> 0:13:30.480 your former Facebook now meta hat. How do you quantify 0:13:30.600 --> 0:13:35.680 the Elon Musk effect because he has one. Oh my gosh, 0:13:35.880 --> 0:13:37.480 that's I don't know if we have enough time for that. 0:13:37.720 --> 0:13:41.360 Here's what I'll say about this. You know, you can't 0:13:41.360 --> 0:13:43.480 deny you've got an innovator there, right, Like I think 0:13:43.480 --> 0:13:47.040 about payments just in itself. Right, You've got his PayPal background, right, 0:13:47.080 --> 0:13:49.720 So you've got this, and I think he has despite 0:13:49.760 --> 0:13:52.240 everything that's gone on, I think he's got this lure 0:13:52.280 --> 0:13:55.520 about him. People still, you know, sort of worship him 0:13:55.559 --> 0:13:57.559 in terms of what he's built. You can't you cannot 0:13:57.640 --> 0:14:00.800 deny him as an innovator. So there's gonna be those 0:14:00.840 --> 0:14:04.640 folks that are going to follow him wherever he goes. Right. 0:14:04.760 --> 0:14:07.000 I think that there's that, and I think that that 0:14:07.320 --> 0:14:10.839 is sort of invaluable in a certain sense, and why 0:14:10.880 --> 0:14:13.280 Twitter still has legs and people are still hanging on. 0:14:13.440 --> 0:14:15.160 That's why we're talking about him right now, right, It's 0:14:15.160 --> 0:14:16.920 why we're hanging on to every word because we know 0:14:17.200 --> 0:14:19.680 there's genius there. It's just that he's never run a 0:14:19.720 --> 0:14:23.240 platform like this, and having been at a platform obviously similar. 0:14:23.680 --> 0:14:27.200 You know, I was shocked how much Facebook can break 0:14:27.320 --> 0:14:28.880 when I was there, I was like, what do you mean, 0:14:29.000 --> 0:14:31.560 it doesn't work sometimes these platforms are so buggy and 0:14:31.600 --> 0:14:33.120 they break all the time, and he's gotten rid of 0:14:33.200 --> 0:14:36.640 all of the infrastructure there by which to support this basically, 0:14:37.000 --> 0:14:39.240 and so I feel like there's just some basic, fundamental 0:14:39.320 --> 0:14:40.960 things that he needs to do before he builds this. 0:14:41.040 --> 0:14:43.680 But I want in some ways, I want this to 0:14:43.720 --> 0:14:47.280 work because I think that he is such a genius 0:14:47.360 --> 0:14:49.000 that he could bring to this product. It's just a 0:14:49.040 --> 0:14:52.000 matter of whether or not they can support it. So quantifiable, 0:14:52.120 --> 0:14:57.760 I mean, I think it's in some ways invaluable and undetermined. Caroline. 0:14:57.800 --> 0:15:00.280 One thing that really sit out to me, and that's bass. 0:15:00.560 --> 0:15:03.360 The other night is Elon Musk talking about how the 0:15:03.440 --> 0:15:07.440 ad slowdown was impacting their competitors, not just Twitter, and 0:15:07.560 --> 0:15:09.960 he kind of really labored that point. And on this show, 0:15:10.040 --> 0:15:13.800 right Caroline, think substack, Yeah, we see people making moves 0:15:14.040 --> 0:15:16.600 And to that point, Lauren, we made the idea with 0:15:16.720 --> 0:15:19.520 Sarah that substacks going into notes, they're looking more like 0:15:19.600 --> 0:15:24.000 Twitter Twitters in some way sort of shadow banning people 0:15:24.040 --> 0:15:28.440 who put substack links in. And where are your people 0:15:28.560 --> 0:15:31.360 wanting to build community? Is it all about substack? Is 0:15:31.520 --> 0:15:34.320 what do you need to be across all platforms. Well, 0:15:34.520 --> 0:15:36.840 I mean that's fundamentally what Jolly Smacks are offering is right, 0:15:36.880 --> 0:15:38.600 Like most creators at the end of the day are 0:15:38.960 --> 0:15:41.680 experts in one, maybe two platforms, but they recognize that 0:15:41.760 --> 0:15:43.560 there's a huge audience out there that may not be 0:15:43.720 --> 0:15:46.720 just sort of servicing. So there's we are interested. You know, 0:15:47.320 --> 0:15:49.920 we're really video focused, so we're really focused on more 0:15:50.040 --> 0:15:51.760 the creators that I sort of we've sort of worked 0:15:51.800 --> 0:15:53.720 with or really focus on the video platforms. I understand 0:15:53.760 --> 0:15:55.840 that Twitter that supposedly, I mean he said, you could 0:15:55.840 --> 0:15:58.480 be doing our sorts of things, including video on this subscription, 0:15:58.520 --> 0:16:02.640 but it's really thinking about from Pinterest and Spotify. Those 0:16:02.680 --> 0:16:05.440 we're seeing a lot of interest in as they seem 0:16:05.560 --> 0:16:10.280 much more stable and the opportunity is really exciting on 0:16:10.520 --> 0:16:11.920 those kind of platforms, and we're single a lot of 0:16:12.000 --> 0:16:17.360 interest there. Friendly too, dare I say, la, thank you 0:16:17.720 --> 0:16:21.120 nice people. You know, we thank you for being a 0:16:21.240 --> 0:16:31.920 nice person on our show. We appreciate it. Amazon Web 0:16:32.000 --> 0:16:35.280 Services is making good on its missions bring Januative AI 0:16:35.560 --> 0:16:38.640 to cloud customers. I spoke to CEO Adam Slipski about 0:16:38.680 --> 0:16:41.880 AI integration on AWS and Y. There's such an emphasis 0:16:41.920 --> 0:16:44.560 on the price performance of this tech before it's launched. 0:16:44.720 --> 0:16:48.080 So we're confident that the Amazon Titan models that we 0:16:48.120 --> 0:16:53.120 announced today, which are Amazon's own branded foundation models, which 0:16:53.160 --> 0:16:56.440 of course will be available as part of Amazon Bedrock 0:16:56.520 --> 0:17:01.120 along with leading third party startups, that the Amazon Titan 0:17:01.200 --> 0:17:03.480 models will be really exciting and are going to power 0:17:03.760 --> 0:17:07.280 both Amazon internal use cases as well as being available 0:17:07.440 --> 0:17:11.720 to our external customers to build a generative AI solutions 0:17:11.800 --> 0:17:15.919 and applications on top of us. Adam, you've played your 0:17:15.960 --> 0:17:18.120 hand in the field of generative AI. On the same 0:17:18.280 --> 0:17:20.879 day that Andy Jats, CEO of The Broader Company, has 0:17:20.920 --> 0:17:23.240 given his kind of outlook on the world, he talked 0:17:23.280 --> 0:17:27.800 about AWS facing short term headwinds. How are you managing 0:17:27.880 --> 0:17:30.360 those short term headwinds? What is the Adam Selipsky view 0:17:30.400 --> 0:17:33.040 of the world macro speaking right now? Well, I don't 0:17:33.080 --> 0:17:36.240 think it's any secret that there have been macroeconomic headwinds. 0:17:37.040 --> 0:17:41.720 Companies and all sorts of different industries have seen slowdowns 0:17:41.800 --> 0:17:44.720 or as you put a headwinds of different varieties. You know, 0:17:44.800 --> 0:17:48.159 we're we're very confident in the kind of long term 0:17:48.200 --> 0:17:53.720 outlook for AWS. Demand for the cloud remains strong. Customers 0:17:53.800 --> 0:17:56.360 tell us that we remain as we always have been, 0:17:57.040 --> 0:17:59.560 the leading cloud with the broadest set of capabilities and 0:17:59.640 --> 0:18:02.480 the d set of features within each of our services, 0:18:03.240 --> 0:18:07.480 with the leading security, leading operational performance of any cloud 0:18:07.520 --> 0:18:10.639 in the world. So we feel very confident that we're 0:18:10.680 --> 0:18:13.479 going to remain on a long term road to providing value, 0:18:13.480 --> 0:18:16.600 and in the short term, we're really focused on continuing 0:18:16.680 --> 0:18:19.160 to innovate in the areas that matter most to our customers, 0:18:19.400 --> 0:18:22.080 such as general AI and such as bringing choice and 0:18:22.200 --> 0:18:26.000 democrat democratization to that area, just like AWS it's always 0:18:26.040 --> 0:18:29.440 done for Compute has always done for it, and of 0:18:29.560 --> 0:18:33.760 course on helping our customers as they try and be 0:18:33.880 --> 0:18:36.760 cost efficient and they try and tighten their ballots. We 0:18:36.880 --> 0:18:39.119 don't mean away from that. We lean into that and 0:18:39.240 --> 0:18:41.359 we say, let us work with you to help you 0:18:41.440 --> 0:18:43.880 lower your costs because we know you need this right now. 0:18:44.600 --> 0:18:46.960 Such great conversation and we thank you for that. And 0:18:47.000 --> 0:18:49.480 it's time now for talking tech, because let's go broad 0:18:49.520 --> 0:18:53.000 and let's look to Asia. Chinese President jijimpaing and reaffirming 0:18:53.119 --> 0:18:55.359 is cool for China to be more self relying across 0:18:55.400 --> 0:18:58.080 the range of industries, including science and technology. During a 0:18:58.160 --> 0:19:01.400 trip to Southeast China with officials and called for quote 0:19:01.600 --> 0:19:06.359 further steps to enhance independent innovation. Also in China, Blue Focus. 0:19:06.440 --> 0:19:08.800 It's one of the country's best known media agencies and 0:19:08.840 --> 0:19:13.240 actually plans to replace third party copywriters graphic designers the 0:19:13.320 --> 0:19:16.960 chat chpt style AI system. It's happening. People. Reports say 0:19:17.000 --> 0:19:19.600 that company has already reached out to local tech firms 0:19:19.920 --> 0:19:24.080 to explore licensing technology, and the Justice Department is saying 0:19:24.119 --> 0:19:26.879 that generative AI and other tech innovations may have been 0:19:26.920 --> 0:19:29.320 released years ago in the United States if it wasn't 0:19:29.359 --> 0:19:32.880 for Google's monopolized presence as a search engine. This comes 0:19:32.880 --> 0:19:35.800 ahead of an antitrust suit against Google schedule to go 0:19:35.840 --> 0:19:46.000 to trial in September. I'll come back to Blue Beag 0:19:46.040 --> 0:19:48.959 Technology Caroline Hyde in New York alongside Ed Ludlover over 0:19:49.000 --> 0:19:51.360 there in San Francisco. Let's check out on the market, said, 0:19:51.440 --> 0:19:54.400 because we are seeing just the moon music, dialing back 0:19:54.440 --> 0:19:56.560 on tech but ramping up in terms of the banking sector. 0:19:56.560 --> 0:19:58.280 We're seeing now that's like one hundred off by eight 0:19:58.359 --> 0:20:00.240 tenths of a percent. This is more about the acro 0:20:00.400 --> 0:20:04.920 picture once again, some resiliently unfortunately in the pricing of 0:20:05.040 --> 0:20:07.560 certain goods. The inflation not dialing back as quickly as 0:20:07.600 --> 0:20:09.680 we'd hope, the Federal Reserve likely to have to keep 0:20:09.760 --> 0:20:11.960 on looking at the US economy and flowing it down. 0:20:12.000 --> 0:20:14.320 That's what the retail data showed us today. That of 0:20:14.359 --> 0:20:16.600 course affects technology stocks. There's some people I've found a 0:20:16.600 --> 0:20:19.000 financials up because JP Morgan came out with its numbers 0:20:19.160 --> 0:20:21.720 and really benefited deposits coming in coming from the likes 0:20:21.760 --> 0:20:24.639 of Silicon Valley Bank. Ultimately these banks doing better than 0:20:24.720 --> 0:20:26.680 had been feared. We see a lift and I think 0:20:26.720 --> 0:20:29.840 JP Morgan's up about seven percent two year yield rising. 0:20:29.880 --> 0:20:32.280 I mean that also helps banks, doesn't it. Borrowing costs 0:20:32.320 --> 0:20:34.600 on the rise. But this is a thirteen basis point move. 0:20:34.680 --> 0:20:37.359 We're then still really pricing in what the Federal Reserve 0:20:37.480 --> 0:20:38.760 is going to do. How much does it has to 0:20:38.840 --> 0:20:41.720 tackle inflation? Move it on because I thought it was 0:20:41.800 --> 0:20:43.960 inflationary hedge once upon a time, but ain't at the moment. 0:20:44.000 --> 0:20:45.480 This is a risk, as said, But even as we 0:20:45.520 --> 0:20:47.400 see tech stops coming off the boil, we don't see 0:20:47.440 --> 0:20:48.920 that in the likes of eth We're still seeing it 0:20:49.000 --> 0:20:50.760 holding up to its gains of the day. We're still 0:20:50.760 --> 0:20:53.320 at the highest level since May twenty twenty two. All 0:20:53.400 --> 0:20:56.080 of this coming after that all important upgrade earlier this weekend. 0:20:56.920 --> 0:20:59.480 All right, Karl, let's bring in tag Incline co founder 0:20:59.520 --> 0:21:01.560 in chief is as officer of Edge and Note, a 0:21:01.640 --> 0:21:05.920 software development company behind the graph and indexing and query protocol, 0:21:06.080 --> 0:21:10.399 organizing the world's open blockchain data and making open data 0:21:10.840 --> 0:21:16.440 a public good. You are an instrumental name in blockchain industry, 0:21:17.119 --> 0:21:20.199 regarded in terms of your understanding the underlying technology. Carriages 0:21:20.280 --> 0:21:23.760 showed us one digital asset. What I'd like to ask 0:21:23.840 --> 0:21:26.320 you is to explain to us the momentum right now 0:21:26.680 --> 0:21:30.760 that is in bitcoin ether is that coming from a 0:21:30.880 --> 0:21:36.200 renewed enthusiasm that the underlying blockchain technology is working, is progressing, 0:21:36.359 --> 0:21:40.399 is moving forward. Absolutely, And with the Shanghai update that 0:21:40.480 --> 0:21:43.080 we just saw, this is a massive milestone and that's 0:21:43.119 --> 0:21:45.840 been in the works for seven years ad Proline, and 0:21:46.520 --> 0:21:48.960