Speaker 1: From the heart of where Innovation, money and power Collie
Speaker 1: in Silicon Valley, NBR. This is Bloomberg Technology with Caroline
Speaker 1: Hyde and Ed Ludlow. I'm Caroline Hyde at Bloomberg's world
Speaker 1: headquarters in New York. I'm d Ludlow in San Francisco.
Speaker 1: This is Bloomberg Technology coming up the White House, urging
Speaker 1: social media users and platforms to stop circulating classified documents
Speaker 1: as it works to clean up the biggest intelligence leak
Speaker 1: in decades. We'll discuss and Twitter now allowing users to
Speaker 1: charge subscription fees. We'll break down the move as competitors
Speaker 1: look to grab the social giants market share. And we'll
Speaker 1: hear from the CEO of Amazon Web Services as the
Speaker 1: company joins the race for artificial intelligence dominance. All that
Speaker 1: so much more going up. Let's get to it with
Speaker 1: Shinati Bassa, who who's there in early breaking all this
Speaker 1: bank news for us, but told to us about the
Speaker 1: Silicon Valley bank repercussions and really how sticky some of
Speaker 1: these deposits are likely to be. It's really interesting to
Speaker 1: see just the movement. JP Morgan posted a surprise increase
Speaker 1: in deposits after quarters of decreases now they say it's
Speaker 1: not necessarily a sticky phenomenon. They expect deposit outflows or
Speaker 1: deposit pressure really to continue, if you will, because interest
Speaker 1: rates are still going up. Money markets are still very
Speaker 1: attractive here. But when you look at it, they really
Speaker 1: did end up being a big beneficiary of what happened
Speaker 1: in the regional banking system in the last couple of months,
Speaker 1: if you will. Now remember P ANDC also reported today too,
Speaker 1: And the reason that's important is because people were really
Speaker 1: worried about other mid size regional banks, and the deposit
Speaker 1: number there was a little above what analysts expected. So
Speaker 1: as we think about the broader pressures after the wake
Speaker 1: of Silicon Valley Valley banks, real troubles that we've seen,
Speaker 1: our other banks still feeling any pressure, That's where I
Speaker 1: want to go your tweet, what is it? You said, Shinnali?
Speaker 1: What eight hundred Jamie? That's literally what happened after the
Speaker 1: class of Silicon Valley Bank. Isn't it to be fair?
Speaker 1: I stole that from John Farrow, But but it was charming,
Speaker 1: right because seriously they did go to JP Morgan and
Speaker 1: next week, remember Goldman Sachs and Morgan Stanley are reporting
Speaker 1: and presumably they would also have been beneficiaries, particularly Morgan
Speaker 1: Stanley that also looks to bank a lot of these
Speaker 1: as Silicon Valley startup founders, if you will. Ed remember
Speaker 1: we talked earlier in the week with Nishi Somaia over
Speaker 1: at Goldman Sacks, which really targeted a lending opportunity as well.
Speaker 1: JP Morgan said, net interest income is really going to
Speaker 1: expand very meaningfully. Of course, that is picking up some
Speaker 1: business that we're seeing from other firms getting out of
Speaker 1: the market, but also really interestingly here I find this
Speaker 1: to be a tech play, if you will. A lot
Speaker 1: of this net interest income is coming from credit cards.
Speaker 1: So if you think about the payments businesses, the credit
Speaker 1: card businesses, everything that's online, those are the things that
Speaker 1: are really facilitating any of the love you're seeing in
Speaker 1: the banking system. And this is what some point to
Speaker 1: Shnati Bassak on who can do big banks and fintech
Speaker 1: and wrap it all into a kind of a focus
Speaker 1: for us. Let's route it out with what's happening with
Speaker 1: First Republic, for example, at the moment, Shanani, because it's
Speaker 1: interesting actually under pressure, all people were worried about what's
Speaker 1: to come in terms about flows and deposits. Until that
Speaker 1: question is cleared up around First Republic and First Republic remember,
Speaker 1: as we've been talking about has a big California tie.
Speaker 1: They have really banks a lot of the wealthy in California.
Speaker 1: Then there are a lot of questions about how far
Speaker 1: they've gone in places other banks might not have been
Speaker 1: able to, what is left behind as they're under pressure.
Speaker 1: Until they report. Until that's out of the way, it's
Speaker 1: hard to say that the system isn't all clear, but
Speaker 1: it is a promising sign that we're seeing the bank
Speaker 1: earnings start off very cleanly today. But we do still
Speaker 1: have two weeks ahead of us here where we're going
Speaker 1: to get a lot of questions still about the client
Speaker 1: bases that we're talking about here and what kind of
Speaker 1: pressure that the bankings on the heels of those pins
Speaker 1: might feel. I used to be one eight hundred Greg Becker,
Speaker 1: one eight hundred Jamie Diamond. Right now is so interesting
Speaker 1: to see the net result of that SPB collapse Bloomberg
Speaker 1: Shnali Bassett, thank you so much. Let's go over to
Speaker 1: DC in Washington. The White House is urging social media
Speaker 1: companies to prevent the circulation of information that could hurt
Speaker 1: national securities. It works to clean up that intelligence league.
Speaker 1: Joining us now from always Bloomberg's NAT Security editor Nick
Speaker 1: Wadham's Nick the b gub article lead says it all,
Speaker 1: how did a twenty one year old with basically just
Speaker 1: a driving license and eighteen months experience get access to
Speaker 1: that data? We've had an arrest. What are the latest details. Well,
Speaker 1: he's been charged now with the unlawful retention and dissemination
Speaker 1: of classified information. I mean, the big question here is
Speaker 1: what the government can really do. And that warning from
Speaker 1: the White House, Hey, if you see classif information online,
Speaker 1: don't share it sort of gets to what a struggle
Speaker 1: they're really going to have. I mean, the issue here
Speaker 1: is that he went on a private chat on discord
Speaker 1: and started spreading this stuff around to his friends, and
Speaker 1: then someone in one of those chats took it and
Speaker 1: amplified it more broadly on the wider net. And so
Speaker 1: far the administration is making clear that it has not
Speaker 1: shown it really knows how to clamp down on something
Speaker 1: like that, and it's going to have a really hard
Speaker 1: time doing so. The responsibility Nick, that was cooled on
Speaker 1: for social media platforms themselves, coming from on the press
Speaker 1: officer over at the White House. Do you think that
Speaker 1: that's in any way or reality. Well, I mean, Discord
Speaker 1: obviously did cooperate with the administration on this, as have
Speaker 1: other companies in the past. So I think in large
Speaker 1: part these companies do not want to have top secret,
Speaker 1: classified information distributed on their platforms. But you know, it
Speaker 1: gets to that broader question again, Okay, what can they do?
Speaker 1: This was a private chat, It was a relatively small
Speaker 1: group of people by all accounts. He was putting information
Speaker 1: on there as far back as last December and then
Speaker 1: switched over from just transcribing information to actually posting the documents.
Speaker 1: So what can they do? How closely do they need
Speaker 1: to be watching these chats? And that's something companies are
Speaker 1: going to have to grapple with, especially with this new
Speaker 1: pressure from the administration. The FBI released an affidavit Friday,
Speaker 1: and I just want to point out that Discord, the platform,
Speaker 1: the social media company, was not named in the affidavit,
Speaker 1: but they did provide the FBI with the records requested
Speaker 1: because they were ordered to do so by the court.
Speaker 1: I just want to go back to the individual involved, Nick,
Speaker 1: if we can, I mean, what happens here. They still
Speaker 1: trying to find out exactly the breadth of information that
Speaker 1: was put out there by him, What are kind of
Speaker 1: illegal procedures going forward. Well, I mean, if you look
Speaker 1: at the arrangement and the charging documents themselves, it appears
Speaker 1: to be fairly clear cut in terms of what he's
Speaker 1: accused of doing and the evidence they have against him.
Speaker 1: That all looks, you know, from a layman's perspective, pretty
Speaker 1: daring strong. But the issue I think that's going to
Speaker 1: happen now is, Okay, how many documents actually were there?
Speaker 1: You know, there are several dozen that we know about
Speaker 1: I think about one hundred now, But there's also this
Speaker 1: whole other element where early on, as we now know,
Speaker 1: he was actually typing out information from previous documents and
Speaker 1: putting that out to his friends, and then decided that
Speaker 1: was too much of a hassle, so he was just
Speaker 1: going to photograph documents and start posting them because that
Speaker 1: was easier and quicker to do. So the big question
Speaker 1: is we still don't know the full extent of what
Speaker 1: was actually leaked. The documents we know about so far
Speaker 1: are extremely damaging, but I think investigators really are going
Speaker 1: to be honing in on that question of whether that's
Speaker 1: it or whether there's much more damage out there that
Speaker 1: they don't yet know about. We thank you, we can
Speaker 1: calling you on these moments. Meanwhile, let's stick with where
Speaker 1: Nick is Washington. Just a little reminder for you, go
Speaker 1: to life. Go if you're like enough to have a terminal.
Speaker 1: Bloomberg's valence is Tom Keene. He's currently on stage interviewing
Speaker 1: a whole raft of central bankers of economists. As you
Speaker 1: see Olivia Bronchard there at the moment. I'm Squito Governorth
Speaker 1: as well back of England Cia ten yo. So just
Speaker 1: stick with this and also worktability. I mean we ever
Speaker 1: sends a very sharp changes in your Twitter. All right,
Speaker 1: coming up? Lauren Schipper hosted the Upload podcast. It's going
Speaker 1: to join us to discuss Twitter's move to allow users
Speaker 1: to start charging for content. We'll get more on the
Speaker 1: social media's landscape. Next. This is Bloomberg. Twitter is now
Speaker 1: allowing you users to charge for access to their own content.
Speaker 1: CEO Elon Musk tweeted the announcement, of course on the platform,
Speaker 1: and even said he'll offer amas for his subscribers. Joining
Speaker 1: us for the latest details Bloomberg. Sarah Freyer, you and
Speaker 1: I discussed this just as the tweet came out, and
Speaker 1: we thought, oh, that's interesting. Essentially, for a twelve month period,
Speaker 1: they are offering interesting terms to content creators. Well, they're saying,
Speaker 1: you're going to get all the money that you make.
Speaker 1: The only cut that we'll have to take from it
Speaker 1: is the money we paid of the app store for
Speaker 1: the first twelve months. After that, who knows it could
Speaker 1: become part of the Twitter's revenue proposition. But in twelve months,
Speaker 1: you can build a community. You could do a lot
Speaker 1: a lot of building of that business and then see
Speaker 1: what happens. I just wonder if if Twitter is a
Speaker 1: place where people feel like they can get that stability
Speaker 1: because there has been so much, so much tension, so
Speaker 1: much tumult between Twitter and its creators um since Must
Speaker 1: took over there, they're losing their their blue check marks.
Speaker 1: That it's become more confusing how to figure out the algorithm.
Speaker 1: So there are a lot of factors consider if you're
Speaker 1: going to build that business. And Sarah, what's interesting is
Speaker 1: slowly but surely sub Stock and Twitter seem to be
Speaker 1: trying to move into one another, and that is that's
Speaker 1: what the sub Stack CEO said we should expect when
Speaker 1: he was on your program recently. I mean, this is
Speaker 1: this is the thing is you know, when you're trying
Speaker 1: to build new revenue models, you're you're going to build
Speaker 1: in all directions, and advertising is not working for Twitter
Speaker 1: right now. They have to come up with something else.
Speaker 1: So they're they're going to throw a lot of spaghetti
Speaker 1: on the wall in the next few weeks, months, years.
Speaker 1: We saw subscriptions here, but they also said you're going
Speaker 1: to start to be able to buy and trade stocks
Speaker 1: via Twitter. I mean, all sorts of ideas are going
Speaker 1: to be thrown at us. And in meanwhile, Twitter Blue
Speaker 1: their first idea in the sort of new money making category.
Speaker 1: It hasn't seemed to be doing so well. Only one
Speaker 1: percent of Twitter users actually I think less than one
Speaker 1: percent so far based on estimates, have signed out to
Speaker 1: pay eight dollars a month to Musk for that Satify
Speaker 1: breaking it down. We thank you so much of Bloomberg
Speaker 1: and letstick on all of this. Laurence Snipp has with
Speaker 1: US vice president of corporate Development and Jelly Smackets, a
Speaker 1: company actually focused on amplifying content creators. Lauren, you also
Speaker 1: host a create an upload podcast or previously rank created
Speaker 1: partnerships over it on the Artists formerly known as Facebook.
Speaker 1: And I'm interested, And do you think this will work?
Speaker 1: Will content creators that you try and amplify want to
Speaker 1: go via Twitter in this way? I mean, right now, no,
Speaker 1: I don't think it will work, mainly because I don't
Speaker 1: think this is a platform that creators can sort of trust, right,
Speaker 1: Like it was just you guys were just sort of
Speaker 1: talking about that, right. There's been so much tumult at
Speaker 1: Twitter in the past few months since Elan's taken over.
Speaker 1: If you look at the thread where Elon tweeted this,
Speaker 1: half of the comments on are talking about parts of
Speaker 1: Twitter that is broke, that are broken. And So if
Speaker 1: I'm a creator thinking about where to kind of launch
Speaker 1: a business, which effectively this is, I would be very
Speaker 1: suspect about doing that on Twitter. I mean, I just
Speaker 1: feel like you can't trust this product. I mean they've
Speaker 1: lost most of their employees and talk about security, talk
Speaker 1: about you know, just a reliability of a product. I
Speaker 1: would be very I would be as a creator, would
Speaker 1: be very reticent to do this on Twitter. Right now,
Speaker 1: I think this is a good opportunity to also talk
Speaker 1: about how the content creator ecosystem works, right that you
Speaker 1: need a following. And I guess a question I had
Speaker 1: is it does this move by Elon Musk bring content
Speaker 1: creators from other platforms like TikTok and YouTube where they
Speaker 1: already have an established following and may not have one
Speaker 1: on Twitter. I don't think this is compelling enough of
Speaker 1: an offer to bring people over to Twitter. What I
Speaker 1: think this is more about are the content creators on
Speaker 1: Twitter that have amassed huge followings, of which there are many,
Speaker 1: many of whom have built businesses off of that, just
Speaker 1: putting in elsewhere, And if I'm there, I'm struggling of like,
Speaker 1: oh my gosh, I've got all these followers here and
Speaker 1: now I can capitalize on that here. But I don't
Speaker 1: trust this product. Do I think this is bringing creators
Speaker 1: over to Twitter? No? I think there's other options to
Speaker 1: provide subscription Obviously, Patreon comes to mind. Even Meta has
Speaker 1: a subscription offering, So there's other places to build a
Speaker 1: subscription service. You know, Lauren with your jelly Smack corporate
Speaker 1: development hat on, create an upload podcast hat or even
Speaker 1: your former Facebook now meta hat. How do you quantify
Speaker 1: the Elon Musk effect because he has one. Oh my gosh,
Speaker 1: that's I don't know if we have enough time for that.
Speaker 1: Here's what I'll say about this. You know, you can't
Speaker 1: deny you've got an innovator there, right, Like I think
Speaker 1: about payments just in itself. Right, You've got his PayPal background, right,
Speaker 1: So you've got this, and I think he has despite
Speaker 1: everything that's gone on, I think he's got this lure
Speaker 1: about him. People still, you know, sort of worship him
Speaker 1: in terms of what he's built. You can't you cannot
Speaker 1: deny him as an innovator. So there's gonna be those
Speaker 1: folks that are going to follow him wherever he goes. Right.
Speaker 1: I think that there's that, and I think that that
Speaker 1: is sort of invaluable in a certain sense, and why
Speaker 1: Twitter still has legs and people are still hanging on.
Speaker 1: That's why we're talking about him right now, right, It's
Speaker 1: why we're hanging on to every word because we know
Speaker 1: there's genius there. It's just that he's never run a
Speaker 1: platform like this, and having been at a platform obviously similar.
Speaker 1: You know, I was shocked how much Facebook can break
Speaker 1: when I was there, I was like, what do you mean,
Speaker 1: it doesn't work sometimes these platforms are so buggy and
Speaker 1: they break all the time, and he's gotten rid of
Speaker 1: all of the infrastructure there by which to support this basically,
Speaker 1: and so I feel like there's just some basic, fundamental
Speaker 1: things that he needs to do before he builds this.
Speaker 1: But I want in some ways, I want this to
Speaker 1: work because I think that he is such a genius
Speaker 1: that he could bring to this product. It's just a
Speaker 1: matter of whether or not they can support it. So quantifiable,
Speaker 1: I mean, I think it's in some ways invaluable and undetermined. Caroline.
Speaker 1: One thing that really sit out to me, and that's bass.
Speaker 1: The other night is Elon Musk talking about how the
Speaker 1: ad slowdown was impacting their competitors, not just Twitter, and
Speaker 1: he kind of really labored that point. And on this show,
Speaker 1: right Caroline, think substack, Yeah, we see people making moves
Speaker 1: And to that point, Lauren, we made the idea with
Speaker 1: Sarah that substacks going into notes, they're looking more like
Speaker 1: Twitter Twitters in some way sort of shadow banning people
Speaker 1: who put substack links in. And where are your people
Speaker 1: wanting to build community? Is it all about substack? Is
Speaker 1: what do you need to be across all platforms. Well,
Speaker 1: I mean that's fundamentally what Jolly Smacks are offering is right,
Speaker 1: Like most creators at the end of the day are
Speaker 1: experts in one, maybe two platforms, but they recognize that
Speaker 1: there's a huge audience out there that may not be
Speaker 1: just sort of servicing. So there's we are interested. You know,
Speaker 1: we're really video focused, so we're really focused on more
Speaker 1: the creators that I sort of we've sort of worked
Speaker 1: with or really focus on the video platforms. I understand
Speaker 1: that Twitter that supposedly, I mean he said, you could
Speaker 1: be doing our sorts of things, including video on this subscription,
Speaker 1: but it's really thinking about from Pinterest and Spotify. Those
Speaker 1: we're seeing a lot of interest in as they seem
Speaker 1: much more stable and the opportunity is really exciting on
Speaker 1: those kind of platforms, and we're single a lot of
Speaker 1: interest there. Friendly too, dare I say, la, thank you
Speaker 1: nice people. You know, we thank you for being a
Speaker 1: nice person on our show. We appreciate it. Amazon Web
Speaker 1: Services is making good on its missions bring Januative AI
Speaker 1: to cloud customers. I spoke to CEO Adam Slipski about
Speaker 1: AI integration on AWS and Y. There's such an emphasis
Speaker 1: on the price performance of this tech before it's launched.
Speaker 1: So we're confident that the Amazon Titan models that we
Speaker 1: announced today, which are Amazon's own branded foundation models, which
Speaker 1: of course will be available as part of Amazon Bedrock
Speaker 1: along with leading third party startups, that the Amazon Titan
Speaker 1: models will be really exciting and are going to power
Speaker 1: both Amazon internal use cases as well as being available
Speaker 1: to our external customers to build a generative AI solutions
Speaker 1: and applications on top of us. Adam, you've played your
Speaker 1: hand in the field of generative AI. On the same
Speaker 1: day that Andy Jats, CEO of The Broader Company, has
Speaker 1: given his kind of outlook on the world, he talked
Speaker 1: about AWS facing short term headwinds. How are you managing
Speaker 1: those short term headwinds? What is the Adam Selipsky view
Speaker 1: of the world macro speaking right now? Well, I don't
Speaker 1: think it's any secret that there have been macroeconomic headwinds.
Speaker 1: Companies and all sorts of different industries have seen slowdowns
Speaker 1: or as you put a headwinds of different varieties. You know,
Speaker 1: we're we're very confident in the kind of long term
Speaker 1: outlook for AWS. Demand for the cloud remains strong. Customers
Speaker 1: tell us that we remain as we always have been,
Speaker 1: the leading cloud with the broadest set of capabilities and
Speaker 1: the d set of features within each of our services,
Speaker 1: with the leading security, leading operational performance of any cloud
Speaker 1: in the world. So we feel very confident that we're
Speaker 1: going to remain on a long term road to providing value,
Speaker 1: and in the short term, we're really focused on continuing
Speaker 1: to innovate in the areas that matter most to our customers,
Speaker 1: such as general AI and such as bringing choice and
Speaker 1: democrat democratization to that area, just like AWS it's always
Speaker 1: done for Compute has always done for it, and of
Speaker 1: course on helping our customers as they try and be
Speaker 1: cost efficient and they try and tighten their ballots. We
Speaker 1: don't mean away from that. We lean into that and
Speaker 1: we say, let us work with you to help you
Speaker 1: lower your costs because we know you need this right now.
Speaker 1: Such great conversation and we thank you for that. And
Speaker 1: it's time now for talking tech, because let's go broad
Speaker 1: and let's look to Asia. Chinese President jijimpaing and reaffirming
Speaker 1: is cool for China to be more self relying across
Speaker 1: the range of industries, including science and technology. During a
Speaker 1: trip to Southeast China with officials and called for quote
Speaker 1: further steps to enhance independent innovation. Also in China, Blue Focus.
Speaker 1: It's one of the country's best known media agencies and
Speaker 1: actually plans to replace third party copywriters graphic designers the
Speaker 1: chat chpt style AI system. It's happening. People. Reports say
Speaker 1: that company has already reached out to local tech firms
Speaker 1: to explore licensing technology, and the Justice Department is saying
Speaker 1: that generative AI and other tech innovations may have been
Speaker 1: released years ago in the United States if it wasn't
Speaker 1: for Google's monopolized presence as a search engine. This comes
Speaker 1: ahead of an antitrust suit against Google schedule to go
Speaker 1: to trial in September. I'll come back to Blue Beag
Speaker 1: Technology Caroline Hyde in New York alongside Ed Ludlover over
Speaker 1: there in San Francisco. Let's check out on the market, said,
Speaker 1: because we are seeing just the moon music, dialing back
Speaker 1: on tech but ramping up in terms of the banking sector.
Speaker 1: We're seeing now that's like one hundred off by eight
Speaker 1: tenths of a percent. This is more about the acro
Speaker 1: picture once again, some resiliently unfortunately in the pricing of
Speaker 1: certain goods. The inflation not dialing back as quickly as
Speaker 1: we'd hope, the Federal Reserve likely to have to keep
Speaker 1: on looking at the US economy and flowing it down.
Speaker 1: That's what the retail data showed us today. That of
Speaker 1: course affects technology stocks. There's some people I've found a
Speaker 1: financials up because JP Morgan came out with its numbers
Speaker 1: and really benefited deposits coming in coming from the likes
Speaker 1: of Silicon Valley Bank. Ultimately these banks doing better than
Speaker 1: had been feared. We see a lift and I think
Speaker 1: JP Morgan's up about seven percent two year yield rising.
Speaker 1: I mean that also helps banks, doesn't it. Borrowing costs
Speaker 1: on the rise. But this is a thirteen basis point move.
Speaker 1: We're then still really pricing in what the Federal Reserve
Speaker 1: is going to do. How much does it has to
Speaker 1: tackle inflation? Move it on because I thought it was
Speaker 1: inflationary hedge once upon a time, but ain't at the moment.
Speaker 1: This is a risk, as said, But even as we
Speaker 1: see tech stops coming off the boil, we don't see
Speaker 1: that in the likes of eth We're still seeing it
Speaker 1: holding up to its gains of the day. We're still
Speaker 1: at the highest level since May twenty twenty two. All
Speaker 1: of this coming after that all important upgrade earlier this weekend.
Speaker 1: All right, Karl, let's bring in tag Incline co founder
Speaker 1: in chief is as officer of Edge and Note, a
Speaker 1: software development company behind the graph and indexing and query protocol,
Speaker 1: organizing the world's open blockchain data and making open data
Speaker 1: a public good. You are an instrumental name in blockchain industry,
Speaker 1: regarded in terms of your understanding the underlying technology. Carriages
Speaker 1: showed us one digital asset. What I'd like to ask
Speaker 1: you is to explain to us the momentum right now
Speaker 1: that is in bitcoin ether is that coming from a
Speaker 1: renewed enthusiasm that the underlying blockchain technology is working, is progressing,
Speaker 1: is moving forward. Absolutely, And with the Shanghai update that
Speaker 1: we just saw, this is a massive milestone and that's
Speaker 1: been in the works for seven years ad Proline, and
Speaker 1: it's really is kind of a paradigm shift that we're seeing.
Speaker 1: We're changing the way we coordinate and we incentivize that
Speaker 1: coordination online and with this upgrade, it's just a massive
Speaker 1: proof to the industry on what is past and it's
Speaker 1: really exciting to see. But to your point, there are
Speaker 1: so many different projects in the ecosystem. I think bitcoins
Speaker 1: has very much proven itself in terms of a new
Speaker 1: paradigm when it comes to monetary policy, a new system,
Speaker 1: and Ethereum and the graph are very much in the
Speaker 1: Web three decentralized Internet category. Before we dive into the
Speaker 1: graph your first protocol, talk to us a little bit
Speaker 1: about who's being drawn back in to the eight in particular.
Speaker 1: Is it retail that's being tempted as an institutional interest,
Speaker 1: is it just people are already committed, but you know,
Speaker 1: helping amid pretty low liquidity at the moment. Yeah, So
Speaker 1: many of us building in the industry, we kind of
Speaker 1: look away from the market and we just focus on building.
Speaker 1: And I think that this milestone accomplished with the Shanghai
Speaker 1: upgrade and us moving to proof upstake with Ethereum is
Speaker 1: a great example of that. So the builders have kept building.
Speaker 1: Development is at an all time high. Now you're seeing
Speaker 1: head of the market. There was a lot of fud
Speaker 1: around because there was fifteen percent of eighth that was
Speaker 1: state in the beacon chain that was not liquid. You
Speaker 1: could not withdraw that. And now with this update, there
Speaker 1: was a lot of fud around, a lot of people
Speaker 1: would be dumping those coins, and actually block works were
Speaker 1: ported today that deposits are actually higher than withdraws, with
Speaker 1: eighteen thousand, five hundred eight being deposited more than withdraws.
Speaker 1: So that's an exciting moment. So I think, you know,
Speaker 1: when we saw eight slash BTC down twenty percent ahead
Speaker 1: of this upgrade, so it's kind of the industry proving
Speaker 1: proving a lot of people wrong take and you sort
Speaker 1: of said you look away from prices, and I'm afraid
Speaker 1: to say you probably have to look away from your
Speaker 1: own token price to a certain degree GLT, because it
Speaker 1: is swell off its highs and more than two dollars
Speaker 1: all the way back in February twenty twenty one. I'm
Speaker 1: sure many would say that was an extraordinary period in time.
Speaker 1: But how much does it matter that olt coins perhaps
Speaker 1: aren't participating in some of the rally that we've seen
Speaker 1: of late in eighth in bitcoin? And what do you do?
Speaker 1: Does it matter about the price of one's token when
Speaker 1: you're trying to build an ecosystem. No, I think that
Speaker 1: what's you know, GRT is a work utility token. So
Speaker 1: the concept is that you actually buy it only to
Speaker 1: use it in the network, and there's different roles and
Speaker 1: again this comes back to the incentive around coordination and
Speaker 1: coordinating online. So there are many different participants. You know,
Speaker 1: hundreds of thousands of people across the ecosystem that are
Speaker 1: participating in these protocols, and they're being compensated commensurate to
Speaker 1: the value that they're putting in. And that's one of
Speaker 1: the really powerful pieces beyond just kind of looking at
Speaker 1: the market or the prices. Of course, these sorts of
Speaker 1: protocols and you talk about the thousands using it and
Speaker 1: the integration within depths such as unite walk and a
Speaker 1: lot of this. The protocols is about access, isn't it
Speaker 1: at the moment democratization. Yeah, so you've basically taken through
Speaker 1: the graph. I want you to explain to us what
Speaker 1: that is that you want people to be able to
Speaker 1: publish open APIs contribute to the next work for it
Speaker 1: to be I guess, an open access platform exactly. So
Speaker 1: the graph is a marketplace where public data. So you
Speaker 1: think in Web two you have one Google. In the
Speaker 1: graph network, you have over four hundred quote unquote Googles
Speaker 1: there's four hundred different companies all around the world operating
Speaker 1: independently to serve queries. And when I say query, you
Speaker 1: can think of search in the graph network for these applications.
Speaker 1: And there's over seven hundred applications on the graph network
Speaker 1: today and you pay for the usage of these applications
Speaker 1: in GRT, and that is the point of GRT to
Speaker 1: be used across these applications. And it's exciting to see
Speaker 1: how many people are using these applications and it's at
Speaker 1: all time high taken. I think one of the reasons
Speaker 1: people are really excited about this is it's kind of
Speaker 1: at the intersection of AI and crypto U and AI
Speaker 1: startup an AI entrepreneur in that respect, I wouldn't say
Speaker 1: that the graph is a quote unquote AI project. It's
Speaker 1: very much about open data. But what's exciting around AI
Speaker 1: and the intersection with the graph and Web three is
Speaker 1: that you could imagine having like a chat GPT on
Speaker 1: top of the graph with verifiable data and information. And
Speaker 1: that's really an exciting opportunity because garbage in garbage out
Speaker 1: even with AI, and now we can have really great
Speaker 1: arguments around the garbage using AI technology. So if we
Speaker 1: can verify that information, that's when it becomes really exciting.
Speaker 1: And so that's something that the Semiotic team, one of
Speaker 1: the core developers within the graph ecosystem, is actually looking
Speaker 1: at and working on. But within the graph the indexers
Speaker 1: do use many of them use machine learning today around
Speaker 1: pricing queries. Caroline, I think on this program, you and I,
Speaker 1: because we're in the markets, we're tracking the value of
Speaker 1: any given time of a DUS asset, right. But actually,
Speaker 1: what we've learned this week watch parties for Etherium is
Speaker 1: that actually people are really closely following the technology, the
Speaker 1: developments in the underlying technology, and that convers stations startings
Speaker 1: creep back in. That's what this show is all about
Speaker 1: as well, underlying technology and taken to that point, how
Speaker 1: much does a regulatory environment impede some of the conversation
Speaker 1: about underlying technology, particularly here in the US. Yeah, it's
Speaker 1: definitely interesting to see the way the US has been
Speaker 1: approaching the regulatory market. I think that they are there's
Speaker 1: a chance that they are stifling innovation and pushing that overseas.
Speaker 1: But I think one of the positives with some of
Speaker 1: the regulatory crackdown is that it's pushing people towards transparent systems,
Speaker 1: towards further decentralization, towards further censorship resistance, because this industry,
Speaker 1: it's all about giving power and control back to individuals
Speaker 1: as opposed to kind of locking it up in a
Speaker 1: centralized company. And that's really powerful and I think the
Speaker 1: faster we can get there, the better. And so the
Speaker 1: regulatory environment is actually pushing the industry in that direction,
Speaker 1: which is a positive. Taking great to have some time
Speaker 1: with you, Thank you, thank you so much for having
Speaker 1: taken find co founder and chief business officer over the
Speaker 1: edge and node Ian well yep, coming up observa observability platform.
Speaker 1: Sorry about that one. Honeycomb raises fifty million dollars even
Speaker 1: as the VC landscape still rolling a little bit from
Speaker 1: that SPB collapse and a broader downturn. More in that
Speaker 1: next with CEO Christine Yen, ort to take a really
Speaker 1: quick look at semi conductors. The socks off five pounds,
Speaker 1: seven tenths of one percent. It is heading for a
Speaker 1: second consecutive weekly decline. Mixed stories here right, there's optimism
Speaker 1: in the commoditized memory space that we're addressing the glost.
Speaker 1: But now with the run up Nvidia an aipowered rallies.
Speaker 1: For example, We're starting to question valuations. We're pulling back
Speaker 1: a little bit, down seven tenths to one percent on
Speaker 1: the Philadelphia Semiconductor Index. This is Bloomberg all right. Time
Speaker 1: for the vcuund up crypto startup cheer Network, which was
Speaker 1: valued at about five hundred million dollars in twenty twenty one,
Speaker 1: says it has moved a step closer to a USIPO
Speaker 1: and confidentially submitted a draft registration statement to the SEC.
Speaker 1: The IPO size and price range has not been determined yet.
Speaker 1: And Astranis, the startup that builds geostationary satellites, has just
Speaker 1: raised two hundred million dollars in a financing deal, valuing
Speaker 1: the company at one point six billion dollars. That in
Speaker 1: a round led by the growth fund of Andrews and Horowitz.
Speaker 1: That's all according to a Bloomberg source. Meanwhile, the company
Speaker 1: is preparing for its first ever launch this Saturday. And Carrow,
Speaker 1: I've got a Friday treat for you. A chart, brand
Speaker 1: new data set. Okay, this is the white line. The
Speaker 1: Refinitive VC Index. Think of it as a proxy index
Speaker 1: for VC companies investing in private startups, the valuation of
Speaker 1: private startups, and this is some research that came out
Speaker 1: from Bloomberg Intelligence overnight. Basically, when you look at the
Speaker 1: lows of twenty eighteen and twenty twenty on the Nasdaq
Speaker 1: one hundred, the public markets for the tech sector, we
Speaker 1: see that VC index outperform. But something has changed year
Speaker 1: to date where the NAZAC one hundred is up pretty
Speaker 1: significantly sixteen seventeen percent, and that VC Refinitive Index is
Speaker 1: trailing behind. I think that's really interesting that we've broken
Speaker 1: away from that trend at a time where we have
Speaker 1: kind of questioned financial conditions for private companies, valuations coming down,
Speaker 1: the prospect of doing a down round. But it's a
Speaker 1: brand new index. I love this chart. You can check
Speaker 1: it out g hashtag BTV on the terminal and always
Speaker 1: on bloom the Technology. Yeah. Well, let's continue with that
Speaker 1: sort of juxtaposition between public and private and we can
Speaker 1: dig a little bit deeper now and into the venture
Speaker 1: capital era. You say is lagging behind tech, but some
Speaker 1: people and then you just run through a few are
Speaker 1: still managing to get their funding in in spite of
Speaker 1: this economic termol For today's VC spotlight that's bringing in
Speaker 1: Honeycomb CEO Christine Yen, who's on to talk about a
Speaker 1: series dfunding round that you did fifty million dollars in
Speaker 1: the bank, and what exactly how hard was the environment
Speaker 1: you brought on investors that you hadn't passed insight for example,
Speaker 1: were they willing to be writing checks for companies such
Speaker 1: as yours in this environment? Short enter, Yes, they're absolutely
Speaker 1: willing to. I recognize tricky environment right now, not one
Speaker 1: where i'd recommend folks go, you know, running out there
Speaker 1: to try to raise around. But the fact of the
Speaker 1: matter is we were growing company in a huge space.
Speaker 1: Last year really was the year where it was clears
Speaker 1: of ability was hitting the mainstream and we were the
Speaker 1: leaders in this space. And so for us, the round honestly,
Speaker 1: it's an opportunistic round and came together quite quickly and
Speaker 1: religious makes me grateful for the continued support from our
Speaker 1: existing investors. Scale bench is another one headline as well,
Speaker 1: So I love that you sort of tell us that
Speaker 1: this was opportunistic, opportunistic to what you say is the
Speaker 1: best observability tooling for your software engineering teams. So what
Speaker 1: exactly do you do? How are you helping the customers
Speaker 1: that were currently shining light on Slack and head of Fresh. Yeah.
Speaker 1: In the simplest terms, we help engineering teams understand why
Speaker 1: their software is not behaving the way that they expect.
Speaker 1: You flash some great logos up there, thank you. Vanguard,
Speaker 1: for example, used us to help figure out why the
Speaker 1: one of the one of their pages on their personal Investors'
Speaker 1: website was not loading. Slack uses us to figure out
Speaker 1: why some of their their fixes don't get released as
Speaker 1: quickly as they expect. In software, there's always a slight
Speaker 1: difference between the way that you code, you think that
Speaker 1: code will behave when you have it in your head,
Speaker 1: versus what it's like in front of real users. And
Speaker 1: we help all these engineering teams shorten that shorten that
Speaker 1: distance and make sure that what they think they're putting
Speaker 1: out there is what their users are experiencing. Hey, Christine
Speaker 1: and our audience on bloom Bag Technology. There are so
Speaker 1: many founders out there with companies much smaller than yours,
Speaker 1: and they'll see that you were able to raise this money.
Speaker 1: You've just explained the problem that you're working on in
Speaker 1: the addressable market. How do you use the funds? Tell
Speaker 1: us about the size of your business, how are you
Speaker 1: going to manage your longevity and runway? We are about
Speaker 1: size of the business, solid growth stage. In terms of headcount,
Speaker 1: we have maybe one hundred and sixty one hundred and
Speaker 1: seventy folks. You know, looking forward, we're really excited to
Speaker 1: use some of this capital to expand Geo's investment ecosystem
Speaker 1: and really just be able to continue committing to staying
Speaker 1: on the bleeding edge of what's possible in the space
Speaker 1: by investing in new exciting tech frontiers. You know. Really,
Speaker 1: I think we as a company tend to be fairly
Speaker 1: pragmatic in our spend. That is really what helped us
Speaker 1: weather the last couple of years, not just chasing high
Speaker 1: valuations and running the risk of a down round. This
Speaker 1: is an upround, which we're all very happy about it.
Speaker 1: And I think our focus has always been build a
Speaker 1: great product, build a strong business, build a company our
Speaker 1: people are proud to have been a part of. And
Speaker 1: it is a little too glib to say that the
Speaker 1: rest will follow, but if you keep your focus on
Speaker 1: those things that the market is just another tool to
Speaker 1: continue achieving those goals. Christine, you formerly were a senior
Speaker 1: software engineer at Facebook now known as a lecture of course,
Speaker 1: and when I was at startup Grind earlier this week,
Speaker 1: we were discussing layoffs and the opportunity that layoffs can
Speaker 1: can offer. Are you going out there to kind of
Speaker 1: hire some talent from your former employer that may now
Speaker 1: be on the market given that money you raised. Yes, some,
Speaker 1: but as with everyone, we are doing it pragmatically, thoughtfully
Speaker 1: with an eye to managing cost and efficiency. But we are,
Speaker 1: we are hiring. We're continuing to do really exciting work
Speaker 1: on the bleeding edge of observability and these technology and
Speaker 1: we make a real impact in the lives of our
Speaker 1: customers and their software engineering practices. So you know, every
Speaker 1: door open. When the door closes, another door opens, and
Speaker 1: we're really excited to continue building the best team that
Speaker 1: we can to build the breast product and service that
Speaker 1: we can. Caroline is so interesting to get the real
Speaker 1: term perspectives of a founder CEO. The other thing that
Speaker 1: you know, I was discussing as startup Grind is the
Speaker 1: idea that not everyone is in San Francisco or the
Speaker 1: Bay Area. People were there from all around the world. Yeah,
Speaker 1: and nook. Christina satin Reno right now, how are you
Speaker 1: building a team? Are you building it in person? Are
Speaker 1: you're building it in Reno, You're building it globally? How
Speaker 1: do you see the new world in which we live
Speaker 1: in and ultimately waiting up at the best engineering talent.
Speaker 1: We are largely concentrated in the US and Canada. We've
Speaker 1: got some folks in the UK. When we were actually
Speaker 1: we actually had aspirations to be a distributed company even
Speaker 1: before COVID and the you know, shifting to remote work
Speaker 1: was just hitting an accelerator on plans that we already
Speaker 1: had in place. I actually looked recently and I'm surprised
Speaker 1: to find that two thirds of our company are located
Speaker 1: out of traditional tech hubs, sorry, outside of traditional tech hubs.
Speaker 1: And it means that when we are able to come together,
Speaker 1: it's folks from Utah and Tennessee and Ohio. And it's
Speaker 1: wonderful to be able to tap into a talent pool.
Speaker 1: That is, it doesn't have to be concentrated in a
Speaker 1: particular GEO. Time zones are a little harder. We're working
Speaker 1: around that, but I think remote work is certainly what
Speaker 1: we're committing on committing to Christine, you founded this business
Speaker 1: because your time at face that you recognize the IT
Speaker 1: landscape was changing. I want to end on asking you
Speaker 1: what's changing in technology right now that's a drive for
Speaker 1: your company? Is it AI for example, and all the
Speaker 1: data conversation about the inputs I think in terms of
Speaker 1: driving the company. The way that we build software has
Speaker 1: changed dramatically in the last five or ten years. With
Speaker 1: trends like Cabernetti's microservices server lest technologies. You have this
Speaker 1: explosion of complexity in any sort of architecture diagram on
Speaker 1: how logic flows through a system. With that increase in
Speaker 1: complexity comes with a different set of expectations for any
Speaker 1: tools like ours that are meant to make sense of
Speaker 1: that for a selfware engineering team. So that trend, those
Speaker 1: trends continuing to grow, crest and make selfware engineering teams
Speaker 1: life's difficult. AI is definitely an interesting area we've got
Speaker 1: our ion. I think that there are as with any
Speaker 1: technology it could be there are cases where it can
Speaker 1: be misapplied, and there are cases where it can be
Speaker 1: perfectly applied. And you know, in our world, if we
Speaker 1: make a wrong if our AI attempts make a wrong choice,
Speaker 1: it either risks not waking in an engineer up when
Speaker 1: the software is burning down in the middle of the night.
Speaker 1: Um or it risks waking engineers up in the middle
Speaker 1: of the night when they don't need to be in
Speaker 1: burning them out. So we are trying to be very
Speaker 1: thoughtful about where we where we ask software to make
Speaker 1: decisions and instead are more interested in how can we
Speaker 1: help humans be better versions of themselves? Y mantra. One
Speaker 1: of our one of our folks that I'm borrowing is
Speaker 1: we want to build mecca suits, not robots, and I
Speaker 1: that augmented. I'm calling the conversation. Thank you, hunting Kime Ceo,
Speaker 1: Christine Enna. It is going viral. The Coachella Festival is
Speaker 1: upon us, Bad Bunny and Black Pink. Frank Ocean from
Speaker 1: hersonal Favorite headlining the festival. There's actually at a polo
Speaker 1: club in California, But it's not all about the music
Speaker 1: in my life, right, Yeah, you don't even need to go.
Speaker 1: If you're a fortnight player, you can experience it virtually
Speaker 1: this year. Yeah, what about YouTube? If you've seen this,
Speaker 1: they're dubbing it couchella. You're going to do that couchella
Speaker 1: that does it. From this edition of Bloomberg Technology from
Speaker 1: New York. From San Francisco. This is Bloomberg.