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Speaker 1: From Marhart.

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Speaker 2: We're Innovation of Money and Power Collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

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Speaker 3: I'm Caroline Hyde of Bloomberg's world headquarters in New York,

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Speaker 3: and I'm Ed Ludlow in San Francisco.

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Speaker 4: This has been their technology coming up.

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Speaker 3: Full earning's coverage ahead as we break down results from Google,

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Speaker 3: Microsoft and Snap Plus.

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Speaker 5: We'll preview what we can expect from Meta after the bell.

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Speaker 5: Today we get a little look at the Quest three headset.

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Speaker 3: And later in the hour we will have a conversation

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Speaker 3: with the CEO of Qualcom as a chip Verm unveils

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Speaker 3: a new processor to take on the likes of Apple

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Speaker 3: and Intel. But first let's check in on these markets.

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Speaker 3: And we're seeing my voice warming up as we start

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Speaker 3: the show. The Nasdaq on the downside end of the moment,

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Speaker 3: we're up by one point eight percent. This is as

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Speaker 3: we see, of course, well some numbers coming out Google

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Speaker 3: to the points. I know you'll get into the nittiqritty

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Speaker 3: of the earnings. That just sink some of that well

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Speaker 3: buoyancy that we've been seeing in some of the tech

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Speaker 3: names of late a big tech on the downside is

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Speaker 3: yield to push higher as well. This is actually your

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Speaker 3: categorical sort of bear steepening going on at the moment.

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Speaker 3: We actually see the yields that a long end of

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Speaker 3: the curve, the tens the thirties really selling off more

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Speaker 3: yields up some eight nine basis points. We've got a

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Speaker 3: big five year auction coming up. We're down at like

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Speaker 3: four point nine to one, so not off. We're still

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Speaker 3: not those highs ahead of five percent, but still we're

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Speaker 3: seeing some sell off in the bond market, and I'm

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Speaker 3: looking at Bitcoin continuing to rally. We're up three and

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Speaker 3: a half percent. But break down the individual micromoves at

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Speaker 3: the moment.

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Speaker 4: Ed, Yeah, I mean we are in it.

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Speaker 5: This is earnings, and earnings matter again, not just if

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Speaker 5: you're an investor, but you get a good lens into

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Speaker 5: the end markets, particularly in all kinds of consumer electronics

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Speaker 5: and electronics broadly. That's why I look at Texas Instruments

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Speaker 5: gave a revenue forecast which suggests that actually those end

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Speaker 5: markets are not recovering at the pace that we'd hope.

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Speaker 5: Texas Instrument makes all kinds of semiconductors that go into

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Speaker 5: all kinds of things. The big ones last night were

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Speaker 5: Microsoft and Google. It was a tale of two clouds.

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Speaker 5: Mega growth on the cloud side for Microsoft, powered by

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Speaker 5: the hype around AI, but Google Cloud miss estimates all

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Speaker 5: its other segments beat but Google Cloud missed. And we

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Speaker 5: will get into that in just a moment. And as

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Speaker 5: you said after the bell, you then have Meta and Snap.

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Speaker 5: It's interesting to look at how they trade and the

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Speaker 5: structure of this week because oftentimes Alphabet will report earnings first.

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Speaker 5: That gives us a lens into the advertising industry resilience

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Speaker 5: and stability in search and YouTube, but there is concern

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Speaker 5: in Snap and Meta, both down more than two percent.

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Speaker 5: We will also get the hardware story of Meta. How

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Speaker 5: did Quest three go down on the mixed reality side?

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Speaker 5: How much is it committed to spending on its metaverse

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Speaker 5: vision alongside working in AI. So much going on, Let's

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Speaker 5: digest it all and bring in Daniel Newman, the Future

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Speaker 5: and Group CEO, And I think let's start on those

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Speaker 5: kind of cloud names, the taiale of two cloud And

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Speaker 5: I ask a simple question, why can Microsoft Azual grow

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Speaker 5: and Corporate Cloud grow but Google Cloud platform not grow

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Speaker 5: in the same way.

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Speaker 6: Well, I think It's a bit of a tale of

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Speaker 6: good and great. Right now, the market wants great. We

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Speaker 6: know the macroeconomic environment is complicated, with interest rates still

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Speaker 6: very sticky, we know that inflation is still here, and

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Speaker 6: people want blowout results if they're going.

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Speaker 7: To send those buy signals. I'm not as bearish on Google.

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Speaker 6: I've looked at the technology, I've seen the adoption, I've

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Speaker 6: talked to its customers, and twenty two percent growth isn't terrible.

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Speaker 6: The company missed by twenty million dollars. Having said that,

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Speaker 6: Microsoft returned to a faster pace of growth, and it

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Speaker 6: wasn't just the faster pace of growth of Azure. And

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Speaker 6: what I think it really was was the company's ability

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Speaker 6: to explain how AI is driving revenue, how much Azure

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Speaker 6: was being driven three percent versus two percent the.

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Speaker 7: Thirty dollars ahead.

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Speaker 6: The company's done a magnificent job of explaining its AI

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Speaker 6: strategy and how AI is going to drive top line revenue.

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Speaker 6: I just don't think Google's story was as compelling there.

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Speaker 6: But I'm not as bearish on Google Cloud. There's so

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Speaker 6: much cloud growth to come, and our forecasts at Future

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Speaker 6: of our Intelligence forecasts say cloud is where it's going

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Speaker 6: to happen, and I still think the.

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Speaker 4: War is on a danue.

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Speaker 5: I spiked rief Parat, who is now the president, chief

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Speaker 5: investment officer, and CFO, and she gave me a very

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Speaker 5: short answer, customer, cost optimization is what accounted for that

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Speaker 5: cloud number?

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Speaker 4: What does that mean to your mind?

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Speaker 6: Well, so, right now, as I suggested, the macro is

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Speaker 6: still complicated and businesses are still sort of weighing invest

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Speaker 6: and grow, maybe go a little bit slower. We know

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Speaker 6: that the opportunity around AI is very bullish, and companies

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Speaker 6: see productivity gains, they see the opportunities to create efficiencies.

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Speaker 6: But we're also still hearing about companies laye people off.

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Speaker 6: They're weighing how quickly can we make an investment in

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Speaker 6: AI and how quickly can we see a return? And

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Speaker 6: are we looking to ten x productivity through the investment

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Speaker 6: in these capabilities or are we potentially looking to optimize

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Speaker 6: and reduce our cost structures. And until we see a

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Speaker 6: little bit more stability in the macro environment, I think

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Speaker 6: companies are going to be a little bit more cautious.

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Speaker 6: So this is where Microsoft kind of stood out, and

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Speaker 6: it looked across their portfolio it wasn't the same Like

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Speaker 6: in Microsoft, everyone's just go, go go, but I don't

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Speaker 6: necessarily know that that's true across the board.

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Speaker 3: Okay, interesting that you're saying, Still the macro picture is mixed.

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Speaker 3: Drill into what really Microsoft was showing that it's in

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Speaker 3: the right markets at the right time.

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Speaker 6: I think they have told the story longer. They have

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Speaker 6: their numbers and their metrics well defined. We're talking about

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Speaker 6: specifically being able to bear into what part of the business.

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Speaker 6: I mean, you're talking about maybe a one to two

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Speaker 6: percent depending on the currency adjustment on a year over

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Speaker 6: year growth basis, But it was master growth than Google

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Speaker 6: twenty two versus upper twenties, and so everyone's saying, Ooh,

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Speaker 6: Google bad, Microsoft good. I actually think the weight went

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Speaker 6: to the company being able to explain its Azure growth

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Speaker 6: and the AI impact.

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Speaker 7: Of it three percent versus two percent.

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Speaker 6: Meaning more and more of the revenue in Azure is

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Speaker 6: related to the company's AI. And then over the last quarter,

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Speaker 6: it's been able to talk about its AIPC concepts. It's

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Speaker 6: been able to talk about it's thirty dollars per head

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Speaker 6: for Copilot, five dollars per head for being enterprise search.

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Speaker 7: With Copilot.

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Speaker 6: These capabilities are very easy for someone to plug into

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Speaker 6: a spreadsheet and say, where's the growth going to come

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Speaker 6: from the TAM expansion. And if Microsoft keeps going and

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Speaker 6: getting their story out better, it puts all the other

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Speaker 6: cloud players at a disadvantage. So that's why I said,

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Speaker 6: it's not a tale of good and bad, but it

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Speaker 6: is a tale of okay, good and great. And Microsoft

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Speaker 6: did a great job of explaining their AI story.

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Speaker 3: You did a great job explaining it to us. We

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Speaker 3: thank you, Dan and Newman A feature and group of course,

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Speaker 3: all things alphabet Microsoft. Let's turn to Snap because well

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Speaker 3: this is kind of a macro picture for us as well.

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Speaker 3: And but please to welcome Jasmin Emberg, a principle analyst

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Speaker 3: in Insider Intelligence. You lead coverage for social media for

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Speaker 3: Creator Economy, and well, Snap actually managing to initially rally

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Speaker 3: on the fact that its numbers looked better than expected.

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Speaker 3: But is this fragile or is this showing actually a

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Speaker 3: return to growth when it comes to markets?

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Speaker 8: Well, I look, the revenue growth in Q three was

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Speaker 8: certainly good news for investors and others who've been wondering

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Speaker 8: whether Snap has what it takes to turn its ad

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Speaker 8: business around. I think there are some worries and some concerns,

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Speaker 8: specifically around the impact of the Israel Hama's war on

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Speaker 8: its ad business in Q four, which Snap itself warned about.

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Speaker 8: Q four tends to be a quarter that is more

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Speaker 8: heavily weighted towards brand advertising. Brands tend to be more

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Speaker 8: risk averse, so it's possible that there will be some

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Speaker 8: impact on it. But I think in three months from now,

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Speaker 8: we also have to remember that Snap is on a

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Speaker 8: good path and if it can continue this momentum, it

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Speaker 8: will end the year in a better place than where

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Speaker 8: it began.

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Speaker 3: I'm interested as to where it's invested. We were just

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Speaker 3: talking about how Microsoft got itself in the right place

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Speaker 3: at the right time around AI, and Snap was really

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Speaker 3: innovating in that space, but it didn't pay off. How

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Speaker 3: are we seeing those innovations eventually looking to reap some reward.

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Speaker 8: Well, I think AI is where Snap needs to be

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Speaker 8: innovating right now, and it's definitely made some moves in

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Speaker 8: that direction. At the end of Q three, it's shuttered

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Speaker 8: it's ares areas, excuse me, it's ar licensing division, which

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Speaker 8: when I saw the technology was really promising. But I

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Speaker 8: think with the focus being on AI right now. Those

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Speaker 8: investments were becoming really difficult to maintain and to justify

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Speaker 8: it for the company.

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Speaker 5: So the big one after the bell is Meta. And

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Speaker 5: you heard me say at the top of the program,

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Speaker 5: jazmind it. You know the shares are lower. I think

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Speaker 5: folks look at Alphabet and think broadly about advertising, and

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Speaker 5: then they think about Meta. But the meta story got

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Speaker 5: so complicated metaverse or no metaverse? Then AI, and then

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Speaker 5: the bread and butter is ads. What are you expecting?

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Speaker 8: Well, in terms of the ad business, there is a

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Speaker 8: lot to like about Meta right now. You know, it

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Speaker 8: started its rebound already in Q two, and internally we're

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Speaker 8: predicting more of the same this quarter. I'll be looking

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Speaker 8: to see more about Real's monetization, which we know is

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Speaker 8: monetizing at a better rate right now. I'm also curious

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Speaker 8: to hear more about the subscription service that it's potentially

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Speaker 8: rolling out in Europe, as well as Threads monetization. We've

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Speaker 8: seen maybe perhaps a little bit of an uptick and

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Speaker 8: engagement on that platform. At least Meta is trying to

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Speaker 8: drive more usage there, so be curious to see how

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Speaker 8: those things start playing out.

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Speaker 5: All right, Jasmine Enberg of Insider Intelligence. Great to have

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Speaker 5: you on the program. Let's stick with meta Its first

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Speaker 5: truly mixed reality headset, The Quest three is available and

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Speaker 5: the expectation is we'll be talking about it at earnings

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Speaker 5: after the bell.

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Speaker 4: I've got hands on check this out.

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Speaker 5: Meta's Quest three, the latest mixed reality had set, is

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Speaker 5: lighter and thinner than Quest two, but with similar video

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Speaker 5: game style wireless controllers. Launching apps and games is smoother

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Speaker 5: with improved graphics. That's partly down to an updated processor,

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Speaker 5: a second generation Qualcomm Snapdragon.

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Speaker 4: XR two chip.

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Speaker 5: The five hundred dollars Quest three allows you to switch

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Speaker 5: between augmented reality and virtual reality modes. You can play games, exercise,

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Speaker 5: and explore virtual galaxies. Augmented reality is powered by dual

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Speaker 5: colour pass through cameras. This game projects puffians you have

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Speaker 5: to catch against the backdrop of the real world around you.

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Speaker 5: The virtual world you can explore in the Quest three

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Speaker 5: also have higher resolution. More games are coming. Metas partnered

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Speaker 5: with Microsoft to bring Xbox Cloud Gaming to the device

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Speaker 5: in December. I also got quite a workout boxing in

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Speaker 5: full virtual reality. We also tested the latest Meta smart glasses,

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Speaker 5: made in partnership with RayBan Metas upgraded the tech with

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Speaker 5: a twelve megapixel camera and five microphones. The glasses can

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Speaker 5: take photos, record video, and start a live stream through

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Speaker 5: voice control. A static led light indicates a photo being taken,

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Speaker 5: flashing light means a video is being captured. The glasses

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Speaker 5: also come equipped with Meta AI, the company's AI assistant.

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Speaker 5: Hey Meta, take a photo. You can send content directly

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Speaker 5: from the glasses to a friend via a Messenger or WhatsApp,

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Speaker 5: and live stream video to Instagram or Facebook.

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Speaker 3: We've all been affected in it one way or another. Families, friends,

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Speaker 3: fertility treatments. They're often very expensive and in some areas

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Speaker 3: actually inaccessible. As why startups like Geya they aim to

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Speaker 3: prioritize inclusivity for its customers. In fact, the company was

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Speaker 3: launched in twenty twenty two and it's raised already twenty

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Speaker 3: three million dollars. Has also been featured on Bloomberg's UK's

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Speaker 3: list of startups to watch. Tell us a little bit more.

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Speaker 3: Let's see Art's chief of staff over at Gaya and

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Speaker 3: can you just explain a little bit about in at

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Speaker 3: innovative model here? How are you enabling basically any partnership

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Speaker 3: to be able to look at accessing IBF. Yeah, absolutely so.

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Speaker 9: Guya was really born out of our founder and nadows

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Speaker 9: like experience with IVF and he first hand went through

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Speaker 9: five IVF cycles, four failed rounds, and he just realized

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Speaker 9: how broken the system really was, and the first thing

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Speaker 9: he wanted to improve was access because he saw the

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Speaker 9: financial gamble that people take. You have to save up

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Speaker 9: all this money upfront in order to go through treatment.

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Speaker 9: And so what we've done at Gia's we've basically created

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Speaker 9: the most affordable way to start and protect your treatment.

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Speaker 9: So people will pay Gaya a small protection fee to

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Speaker 9: start treatment, and then GIA pays the clinics and takes

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Speaker 9: care of the whole administrative burden that goes on, you know,

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Speaker 9: behind the scenes, like paying invoices and all of that,

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Speaker 9: and the member just focuses on going through treatment and

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Speaker 9: they pay Guya back in monthly installments if and when

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Speaker 9: they have a child, and if they don't have a child,

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Speaker 9: they have nothing more to pay.

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Speaker 3: So, but how do you take on that financial burden

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Speaker 3: if after desperately sad several rounds, they decided are they

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Speaker 3: inevitably believe realized they can't have a chance.

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Speaker 9: How does guya take on that pund Yeah, So we

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Speaker 9: actually have insurers who underwrite the risk for us. So

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Speaker 9: we've built a model based on you know, million data

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Speaker 9: points from clinical data sets of all the IVF outcomes

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Speaker 9: since the early nineties, and so we predict our members'

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Speaker 9: chances of success over a certain number of rounds, and

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Speaker 9: our underwriters take.

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Speaker 3: On that risk. So how innovative was this story to

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Speaker 3: be able to tell to vcs? How easy was it

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Speaker 3: to convince and to raise money or not? As case maybe, so.

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Speaker 9: I think it was quite difficult, and especially actually, you know,

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Speaker 9: at first, to convince the underwriters this is like a

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Speaker 9: new model. And so we feel very lucky to have

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Speaker 9: been backed by three incredible underwriters who really understood and

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Speaker 9: worked with us to build this product from the ground up.

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Speaker 9: And we're also incredibly lucky to have vcs who really

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Speaker 9: understand the space and you know, didn't dismiss it as

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Speaker 9: a more niche sort of you know, woman's health topic

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Speaker 9: and really understood like how big and important the topic was.

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Speaker 9: And so we feel very lucky with our backers. Our

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Speaker 9: underwriters are.

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Speaker 3: Not our vcs, and it's notable that you know, might

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Speaker 3: be labeled femtech, but male founder and IVF problems are

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Speaker 3: also male and female in many ways. And I mean

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Speaker 3: I'm sat here today because of IVF. So this is

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Speaker 3: a long term set of data points you can lean

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Speaker 3: on how easy or difficult was it to access that data?

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Speaker 9: So you have to do sort of an application with

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Speaker 9: a research you know, assistant who's helping us get access

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Speaker 9: to it. And we've done a huge amount of research,

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Speaker 9: you know, looking into whether it be AMI effects it,

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Speaker 9: whether you should have BEMI cutoff points, age cut off

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Speaker 9: points to really also increase access in that manner, and

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Speaker 9: so you have to put an application to access it.

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Speaker 9: And we you know, we get data from our partner

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Speaker 9: clinics and all anonymous, but we work hard to get

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Speaker 9: data to make sure we're increasing access.

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Speaker 3: Is it all British data or a UK based company?

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Speaker 3: Are you learned to go geographically wider?

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Speaker 9: Yeah, we're currently based in the UK, but definitely also

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Speaker 9: operate in Spain and Greece because there's a lot of

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Speaker 9: IVF tourism to these countries and then we are looking

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Speaker 9: to expand to more markets, So more news on that

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Speaker 9: early next year.

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Speaker 3: And how different is it accessing different markets in different

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Speaker 3: ways in which IVF is offered and functions and indeed

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Speaker 3: access to data in different geographies.

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Speaker 9: Yeah, it's a good question. I mean, so in a

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Speaker 9: lot of countries, you know, you have different funding by

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Speaker 9: the states. Some countries are better than others. UK, like

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Speaker 9: sixty five percent of IVF cycles are paid out of pocket.

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Speaker 9: US is another high private pay market, and so you know,

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Speaker 9: you do have to look at what exists in these

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Speaker 9: market before before entering. In terms of getting access to data,

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Speaker 9: it's about like working with our partners, working with researchers.

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Speaker 9: The good thing about IVF is that it does have

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Speaker 9: outcome data from since IVF started and then you know

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Speaker 9: in the seventies, nineteen seventy eight. Yeah, exactly, So we

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Speaker 9: do have all that outcome data that we have access

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Speaker 9: to and that we that we can use in order

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Speaker 9: to improve our models.

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Speaker 3: And I'm pretty sure AI is going to be being

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Speaker 3: pretty useful as well. Alexia, it's great to have some

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Speaker 3: time with you. Thank you, of course, featured on our

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Speaker 3: Startups to Watch list here in the UK, Alexia.

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Speaker 10: Arts of Gaya. Time now for talking tech.

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Speaker 3: First up, the Chinese government calling it's proven to fox

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Speaker 3: con quote normal law enforcement Chinese state media announced this

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Speaker 3: weekend that government regulators are conducting tax audits and reviewing

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Speaker 3: land use of fox Con. Fox Con says it will

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Speaker 3: work with authorities. Meanwhile, Japan is aiming to secure an

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Speaker 3: additional ten billion dollars in subsidies for two semiconductor projects.

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Speaker 3: More than half will be set aside for a second

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Speaker 3: TSMC factory in southwestern Japan. The new factory is expected

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Speaker 3: to make nanometer logic chips. Plus Apple Well, It's set

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Speaker 3: to revamp its TV app as part of an effort

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Speaker 3: to become well a larger player in the streaming world.

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Speaker 3: Changes include discontinuing apps on the Apple TV set top

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Speaker 3: box and let users buy and rent movies and shows.

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Speaker 3: We'll also remove the movie and TV show sections from

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Speaker 3: the iTunes store app and for more. Let's dig into

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Speaker 3: this scoop one and only Mark German, and it's plenty

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Speaker 3: talked about across online at the moment. Today, Mark just

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Speaker 3: tell us a little bit about how they think these

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Speaker 3: changes will help them compete.

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Speaker 1: Yeah, this is a pretty big upgrade coming to the

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Speaker 1: TV app on the Apple TV. They're adding a new

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Speaker 1: sidebar and a new interface that makes it look more

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Speaker 1: like Netflix. The current TV app, if anyone has used

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Speaker 1: it on the Apple TV is not very intuitive. The

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Speaker 1: idea is to aggregate content from a number of sources.

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Speaker 1: TV Plus, which by the way, Apple announced this morning,

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Speaker 1: is getting a price increase from seven dollars a month

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Speaker 1: to ten dollars a month, and I'm sure we'll talk

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Speaker 1: more about that over the course of the day. It

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Speaker 1: integrates from there apps like ESPN, Amazon Prime Live News.

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Speaker 7: Other live sports networks, but.

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Speaker 1: It's a little confusing to navigate, so this is designed

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Speaker 1: to simplify it. They're also going to be removing the

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Speaker 1: iTunes Movie and iTunes TV Show apps from the Apple

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Speaker 1: TV and from the iTunes Store app on iOS. The

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Speaker 1: reason they're doing that is you can already buy that

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Speaker 1: content in the TV app, and they want to push

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Speaker 1: anyone looking to watch video on their devices to the

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Speaker 1: TV app. Obviously that's the center of their video strategy.

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Speaker 1: Now that's where you can sign up for these subscriptions,

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Speaker 1: both Apple TV channel add ons plus the now ten

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Speaker 1: dollars a month TV Plus service.

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Speaker 4: You're right that we'll talk about it.

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Speaker 5: The breaking news of the day is that Apple is

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Speaker 5: raised prices marked across basically all of it services where

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Speaker 5: the price increases and why really, Yeah, so.

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Speaker 1: Going from seven a month to ten a month for

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Speaker 1: Apple TV Plus. Now over the past year they've doubled

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Speaker 1: the price because they increased it from five to seven

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Speaker 1: dollars a month October last year, so now ten dollars

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Speaker 1: a month for Apple TV plus Apple Music that price

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Speaker 1: increase from ten to eleven dollars last year. That remains,

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Speaker 1: but Newsplus is going from ten dollars a month to

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Speaker 1: thirteen dollars per month, and Apple Arcade is going from

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Speaker 1: five dollars a month to seven dollars a month now.

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Speaker 1: These increases come as they've expanded the content offerings in

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Speaker 1: both Apple Arcade as well as Apple TV Plus. Apple

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Speaker 1: tv Plus is getting more shows very frequently. There have

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Speaker 1: been hits lately. Obviously, everyone's been talking about the Scorsese.

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Speaker 7: Movie on there.

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Speaker 1: Apple Arcade, they've doubled the amount of games they've had

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Speaker 1: on there since they launched it at five dollars a

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Speaker 1: month in twenty nineteen. News Plus they need more revenue

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Speaker 1: to pay publishers more money. Right, publishers are even losing

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Speaker 1: money or not making so much money on Newsplus, so

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Speaker 1: hopefully publishers are now going to get an increased revenue

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Speaker 1: share because of this, rather than the money going into

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Speaker 1: Apple's pocket. In terms of their other services, Apple one

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Speaker 1: bundles those who went up quite significantly as well to

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Speaker 1: incorporate those price increases. But Fitness Plus and iCloud.

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Speaker 3: Stay the same.

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Speaker 4: I think that's Mark German and all things Apple. Thank you.

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Speaker 5: Also out across the Bloomberg universe, Ruin is the first

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Speaker 5: documentary by Bloomberg originals that dives into the collapse of FTX,

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Speaker 5: as narrated by Bloomberg journalists and some of the central

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Speaker 5: players in the rise of these assets.

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Speaker 4: Here's a sneak preview of the film.

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Speaker 6: I don't think he even had almost a conception at

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Speaker 6: some points that it was wrong or right.

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Speaker 4: I think he just had the mentality that he has

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Speaker 4: to win.

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Speaker 1: It was almost like trying to explain like business ethics

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Speaker 1: one O one to a baby.

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Speaker 11: Sama has basically become a villain in everyone's minds.

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Speaker 3: This committee will not stop until we uncover the bull

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Speaker 3: through behind the collapse of FTX. Will this be the

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Speaker 3: last of its kind?

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Speaker 7: No, this is the nature of happened was and get.

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Speaker 5: Over joining us with more Bloomberg's Max Chafkin, and my goodness,

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Speaker 5: what a project to be involved and tell us about it.

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Speaker 12: Yeah, I mean, and it's it's continuing on. I mean,

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Speaker 12: we we just learned hours ago that we'll get testimony

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Speaker 12: from Sam Bankman Freed in the trial. You know, this

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Speaker 12: is has been a year of just crazy news, a

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Speaker 12: time in which Sam Bankman Freed went from being you know,

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Speaker 12: seen as as one of the members of the establishment,

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Speaker 12: you know, the one of the youngest billionaires ever to

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Speaker 12: being potentially facing a life sentence and we could you know,

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Speaker 12: get a verdict as as early as next week, if

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Speaker 12: not the week after. So so really a lot happening

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Speaker 12: here in Crypto and a real reckoning after you know,

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Speaker 12: years of really serious growth.

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Speaker 3: And there was always sort of more and more extraordinary

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Speaker 3: parts to this story, shocking anecdotes. What took you most

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Speaker 3: by surprise, Max, when you were really deep diving into

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Speaker 3: this making, I mean.

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Speaker 12: To me, the most surprising thing here was just the

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Speaker 12: way that Sam Bankmin Freed, of course, sort of talked

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Speaker 12: his way into this amazing position, this position where he

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Speaker 12: was in the room with famous venture capitalists and politicians

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Speaker 12: and celebrities and Tom Brady and so on. And he

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Speaker 12: essentially attempted the same strategy on the way down right.

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Speaker 12: We saw him talking giving these kind of bizarre, meandering

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Speaker 12: interviews in the month, weeks and months after FTX had

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Speaker 12: gone bankrupt. And again I think we're going to see

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Speaker 12: kind of a crescendo of that when he takes the stand.

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Speaker 4: This is somebody who.

439
00:21:42,800 --> 00:21:44,920
Speaker 12: Has you know, been able to wrap a lot of

440
00:21:44,960 --> 00:21:53,200
Speaker 12: people around his finger and watching that all unravel again staggering.

441
00:21:51,400 --> 00:21:54,320
Speaker 5: Moos mats Chefkin, thank you very much and ruin money,

442
00:21:54,400 --> 00:21:58,359
Speaker 5: ego and deception at FTX as Wednesday at eight pm

443
00:21:58,440 --> 00:22:10,560
Speaker 5: New York time here on Bloomberg Television, Welcome back to

444
00:22:10,560 --> 00:22:14,560
Speaker 5: Bloomberg Technology. Ed Ludlow here in San Francisco.

445
00:22:15,080 --> 00:22:17,840
Speaker 3: And I'm Karen Hyed right here in London. And in

446
00:22:17,880 --> 00:22:19,480
Speaker 3: fact we want to be talking a little bit more

447
00:22:19,520 --> 00:22:22,560
Speaker 3: about the world of the UK VC. In the UK

448
00:22:22,720 --> 00:22:25,840
Speaker 3: it's VC spotlight. Just two months ago, Silicon Valley firm IVP,

449
00:22:26,320 --> 00:22:29,800
Speaker 3: born in the nineteen eighties, took a leap across the pond,

450
00:22:29,880 --> 00:22:32,840
Speaker 3: opening office right here in London. Nearly twenty years after

451
00:22:33,000 --> 00:22:35,639
Speaker 3: it first aver actually started investing in Europe as a sphere.

452
00:22:35,880 --> 00:22:38,360
Speaker 3: Ivp's Alex Lim joins us now to discuss what has

453
00:22:38,400 --> 00:22:41,880
Speaker 3: been well. I decided boots on ground mentality like, why

454
00:22:41,920 --> 00:22:45,320
Speaker 3: did you decide, having already had some big hits UiPath,

455
00:22:45,400 --> 00:22:47,480
Speaker 3: you've been in Supercell, why did you need to be

456
00:22:47,560 --> 00:22:49,480
Speaker 3: here to access European talent a bit more?

457
00:22:49,640 --> 00:22:49,960
Speaker 7: Yeah.

458
00:22:50,000 --> 00:22:54,719
Speaker 11: Absolutely, we've had some great successes in Europe over the years.

459
00:22:55,000 --> 00:22:57,840
Speaker 11: We have been fortunate to be backers of companies like

460
00:22:57,920 --> 00:23:02,959
Speaker 11: Wys and Supercell, UiPath, and that gives us increased confidence

461
00:23:03,119 --> 00:23:06,399
Speaker 11: in the region that there will be more entrepreneurs that

462
00:23:06,440 --> 00:23:10,000
Speaker 11: come up and build global businesses out of Europe. As

463
00:23:10,000 --> 00:23:13,359
Speaker 11: it pertains to opening an office here in London, we

464
00:23:13,400 --> 00:23:15,800
Speaker 11: want to be really close to the founders that we back.

465
00:23:16,040 --> 00:23:18,360
Speaker 11: We often serve on the boards of the companies we

466
00:23:18,760 --> 00:23:22,520
Speaker 11: invest in, and so having that close relationship where we're

467
00:23:22,560 --> 00:23:25,160
Speaker 11: just a time zone or a short flight away from

468
00:23:25,200 --> 00:23:28,520
Speaker 11: the founders we work with is really important to our strategy.

469
00:23:30,000 --> 00:23:33,520
Speaker 3: I think also what's happening the sense of being close

470
00:23:33,680 --> 00:23:36,120
Speaker 3: we're now though, are we ever hitting a tipping point

471
00:23:36,119 --> 00:23:38,040
Speaker 3: where you think of some of the companies you're already

472
00:23:38,040 --> 00:23:41,560
Speaker 3: backed that have shown exits, that have had liquidity events,

473
00:23:41,560 --> 00:23:45,119
Speaker 3: that have therefore probably see people leave the companies and

474
00:23:45,160 --> 00:23:47,760
Speaker 3: start building their own. Are you seeing that flywheel of

475
00:23:47,800 --> 00:23:50,760
Speaker 3: like UiPath, but now you've decided to go build your

476
00:23:50,800 --> 00:23:51,560
Speaker 3: own new startup?

477
00:23:51,840 --> 00:23:52,480
Speaker 4: Absolutely.

478
00:23:53,160 --> 00:23:55,920
Speaker 11: UiPath is spinning out a couple of great companies right now,

479
00:23:55,920 --> 00:23:58,800
Speaker 11: which we're actively tracking, and I think there'll be more

480
00:23:58,800 --> 00:24:02,040
Speaker 11: and more entrepreneurs technical people that come out of these

481
00:24:02,040 --> 00:24:06,879
Speaker 11: companies and decide that entrepreneurship is their next career career path.

482
00:24:07,400 --> 00:24:11,520
Speaker 11: We travel all over Europe. We've actually been since opening

483
00:24:11,520 --> 00:24:15,040
Speaker 11: the office in August in eight different cities, so we're

484
00:24:15,119 --> 00:24:19,560
Speaker 11: trying to find these entrepreneurs wherever they are, and they

485
00:24:19,640 --> 00:24:22,240
Speaker 11: do come out of different places, not just the major

486
00:24:22,280 --> 00:24:25,240
Speaker 11: tech hubs like Berlin, Paris and London.

487
00:24:25,960 --> 00:24:29,320
Speaker 3: What's interesting is today, of all days, you're seeing one

488
00:24:29,440 --> 00:24:34,640
Speaker 3: key fintech player listed in France. Worldline absolutely pummeled, largely

489
00:24:34,800 --> 00:24:37,880
Speaker 3: the idiosyncratic some of it, but also an economic perspective

490
00:24:37,920 --> 00:24:40,480
Speaker 3: that Germany is about to hit recession. It's an interesting

491
00:24:40,520 --> 00:24:42,560
Speaker 3: time to be wanting to plowing into Europe at the moment.

492
00:24:42,640 --> 00:24:45,280
Speaker 3: How has that economic macro backdrop affected some of the

493
00:24:45,280 --> 00:24:46,440
Speaker 3: companies to support.

494
00:24:46,720 --> 00:24:49,240
Speaker 11: We think a lot about the technology ecosystem and the

495
00:24:49,280 --> 00:24:52,119
Speaker 11: markets that we serve, and so you can think of

496
00:24:52,160 --> 00:24:54,560
Speaker 11: back to twenty twenty two, there was a reset in

497
00:24:54,600 --> 00:24:58,639
Speaker 11: the equity markets for public technology stocks that has affected

498
00:24:59,200 --> 00:25:02,080
Speaker 11: technology all across our region.

499
00:25:02,200 --> 00:25:03,520
Speaker 4: In Europe.

500
00:25:03,800 --> 00:25:07,720
Speaker 11: There is more and more realization that we might be

501
00:25:07,880 --> 00:25:11,560
Speaker 11: entering a recessionary environment, so our entrepreneurs are starting to

502
00:25:11,600 --> 00:25:12,960
Speaker 11: prepare for that.

503
00:25:12,960 --> 00:25:14,119
Speaker 4: That said, a lot.

504
00:25:14,000 --> 00:25:17,640
Speaker 11: Of our companies actually do well in recessionary environments. They

505
00:25:17,680 --> 00:25:24,840
Speaker 11: are increasing productivity for businesses or providing valuable services to consumers,

506
00:25:25,160 --> 00:25:28,119
Speaker 11: so that we do think there are some counter cyclical

507
00:25:28,880 --> 00:25:30,320
Speaker 11: companies within our portfolio.

508
00:25:31,480 --> 00:25:32,800
Speaker 4: Alex is, good to see you.

509
00:25:32,800 --> 00:25:35,199
Speaker 5: Your business partner, Eric was on the show with us

510
00:25:35,240 --> 00:25:37,800
Speaker 5: in August when you announced you'd open a London office.

511
00:25:38,080 --> 00:25:40,080
Speaker 5: The next day, he jumped on a plane and moved

512
00:25:40,119 --> 00:25:42,560
Speaker 5: his life to London. And I guess I want to

513
00:25:42,600 --> 00:25:44,359
Speaker 5: know what you've been up to since you know. What

514
00:25:45,000 --> 00:25:48,040
Speaker 5: is it like in London? Are there hackathons and mixers

515
00:25:48,119 --> 00:25:50,840
Speaker 5: and drinks and you're making friends with all of the

516
00:25:50,880 --> 00:25:53,960
Speaker 5: people you've been working with long distance on rounds.

517
00:25:53,640 --> 00:25:58,840
Speaker 11: With Yeah, we're definitely getting out into the ecosystem. An

518
00:25:58,880 --> 00:26:02,440
Speaker 11: important part of our business is to get out into

519
00:26:02,480 --> 00:26:05,760
Speaker 11: the regions that we serve and meet the great founders,

520
00:26:05,880 --> 00:26:11,320
Speaker 11: the great entrepreneurs, and then also venture backers. Each of

521
00:26:11,359 --> 00:26:15,719
Speaker 11: these cities around Europe have local seed investors that we

522
00:26:15,840 --> 00:26:19,800
Speaker 11: love to partner with because usually we're coming in as

523
00:26:19,800 --> 00:26:23,480
Speaker 11: a second or third round of investment, so we're out

524
00:26:23,480 --> 00:26:26,240
Speaker 11: there on planes making sure that we're face to face

525
00:26:26,280 --> 00:26:30,400
Speaker 11: with those people, and it's definitely a huge priority for us.

526
00:26:30,720 --> 00:26:35,639
Speaker 11: We're also have a large portfolio within Europe already, so

527
00:26:35,680 --> 00:26:38,800
Speaker 11: we're traveling to these cities to go to board meetings.

528
00:26:39,400 --> 00:26:42,440
Speaker 11: You're going to Paris to see pigment, or to Germany

529
00:26:42,520 --> 00:26:45,600
Speaker 11: to see deep l There's a lot of different reasons

530
00:26:45,640 --> 00:26:47,760
Speaker 11: why we get out into the region, and I think

531
00:26:47,800 --> 00:26:49,080
Speaker 11: that's a real positive for us.

532
00:26:50,280 --> 00:26:53,560
Speaker 5: Alex Is there the variety of technology in Europe that

533
00:26:53,640 --> 00:26:56,200
Speaker 5: we have here in the Silicon Valley in the Bay Area,

534
00:26:56,240 --> 00:27:00,200
Speaker 5: across software, hardware, everything that's happening in AI, you have

535
00:27:00,320 --> 00:27:03,080
Speaker 5: the same things to pick from.

536
00:27:03,200 --> 00:27:06,880
Speaker 11: Yeah, there's a huge variety, and it's funny that in

537
00:27:06,880 --> 00:27:11,920
Speaker 11: individual cities there are different areas of expertise. Obviously London

538
00:27:12,200 --> 00:27:16,720
Speaker 11: with the strong backing of financial services and great talent

539
00:27:16,800 --> 00:27:18,720
Speaker 11: you have in that area. We back a lot of

540
00:27:18,760 --> 00:27:22,359
Speaker 11: fintech companies here. So an example would be a Vault,

541
00:27:22,440 --> 00:27:25,760
Speaker 11: which we backed earlier this year. They're a financial technology

542
00:27:25,800 --> 00:27:30,159
Speaker 11: company working on account to account payments or see on,

543
00:27:30,480 --> 00:27:33,439
Speaker 11: which is in the fraud verification space. But then you

544
00:27:33,480 --> 00:27:36,160
Speaker 11: travel other places and you see different pockets of talent.

545
00:27:36,560 --> 00:27:39,600
Speaker 11: One area that I'm really excited about right now is

546
00:27:39,720 --> 00:27:44,119
Speaker 11: Paris and France. They have such strong AI talent and

547
00:27:44,160 --> 00:27:46,439
Speaker 11: so we're seeing more and more companies come out of

548
00:27:46,480 --> 00:27:48,720
Speaker 11: that ecosystem that we're trying to back.

549
00:27:49,000 --> 00:27:54,199
Speaker 3: Great universities both UK, France and Europe. More broadly, alex

550
00:27:54,200 --> 00:27:56,560
Speaker 3: though you put a very sort of positive spin on it.

551
00:27:56,640 --> 00:27:59,240
Speaker 3: A macro environment that's challenging, but founders that are able

552
00:27:59,240 --> 00:28:02,160
Speaker 3: to be sort of counters already preparing. But we hear

553
00:28:02,240 --> 00:28:04,520
Speaker 3: more and more that there are a load of unicorns

554
00:28:04,560 --> 00:28:06,560
Speaker 3: or a load of high valuations that are going to

555
00:28:06,600 --> 00:28:10,040
Speaker 3: have to recalibrate. When is that reckoning going to happen?

556
00:28:10,080 --> 00:28:12,120
Speaker 3: It feels like keeps being pushed off and pushed off,

557
00:28:12,119 --> 00:28:15,240
Speaker 3: and special financing deals done in murkier corners.

558
00:28:15,920 --> 00:28:19,720
Speaker 11: One thing we track very closely is the IPO market.

559
00:28:19,960 --> 00:28:22,680
Speaker 11: That's a key barometer for the health of our business.

560
00:28:23,320 --> 00:28:26,159
Speaker 11: IVP has had over one hundred and thirty companies go

561
00:28:26,320 --> 00:28:30,639
Speaker 11: public over its history, but twenty twenty two and twenty

562
00:28:30,680 --> 00:28:34,040
Speaker 11: twenty three there have been less of those offerings. You

563
00:28:34,080 --> 00:28:38,480
Speaker 11: saw the recent offerings in Clavio, Instacart, and arm extremely

564
00:28:38,560 --> 00:28:40,520
Speaker 11: high quality companies going public.

565
00:28:40,920 --> 00:28:41,800
Speaker 4: And actually that's.

566
00:28:41,640 --> 00:28:45,000
Speaker 11: Giving some confidence to the portfolio companies that we have,

567
00:28:45,440 --> 00:28:47,880
Speaker 11: and three or four of those companies are already starting

568
00:28:47,920 --> 00:28:51,000
Speaker 11: to prepare their documents to go public in twenty twenty four.

569
00:28:51,440 --> 00:28:55,080
Speaker 11: So I think you could see more companies going flipping

570
00:28:55,160 --> 00:28:57,960
Speaker 11: from private to public, and that'd be a great thing

571
00:28:58,000 --> 00:28:59,040
Speaker 11: for venture overall.

572
00:28:59,560 --> 00:29:03,280
Speaker 3: Arm men public in America, That's true the frustration of

573
00:29:03,280 --> 00:29:07,040
Speaker 3: the London soop exchange. Will companies that you're backing, Pigment

574
00:29:07,080 --> 00:29:09,760
Speaker 3: in France and like choose to go in public in

575
00:29:09,800 --> 00:29:12,160
Speaker 3: their own European markets or will they always be attracted

576
00:29:12,160 --> 00:29:13,080
Speaker 3: to American liquidity.

577
00:29:14,320 --> 00:29:16,440
Speaker 11: If a company is going public right now, I think

578
00:29:16,440 --> 00:29:17,960
Speaker 11: the Nasdaq on a nice is.

579
00:29:17,960 --> 00:29:19,440
Speaker 4: The right place to go public.

580
00:29:19,480 --> 00:29:19,920
Speaker 7: They should.

581
00:29:20,040 --> 00:29:22,959
Speaker 11: The markets are deeper there, there's a more a deeper

582
00:29:23,040 --> 00:29:27,520
Speaker 11: understanding of technology and the value that technology can bring. However,

583
00:29:27,640 --> 00:29:29,440
Speaker 11: we are hopeful and we want to be part of

584
00:29:29,440 --> 00:29:32,560
Speaker 11: this change here in London. That know, more and more

585
00:29:32,560 --> 00:29:35,440
Speaker 11: companies will go public here in London and around Europe.

586
00:29:35,640 --> 00:29:38,240
Speaker 11: It's great for the ecosystem if you can keep the

587
00:29:38,320 --> 00:29:40,800
Speaker 11: listings here. We'd love to see reforms that help that

588
00:29:41,080 --> 00:29:42,080
Speaker 11: few more deliveries.

589
00:29:42,120 --> 00:29:44,800
Speaker 3: Like I was chatting with Willshoe yesterday, Alex Lam so

590
00:29:44,880 --> 00:29:47,640
Speaker 3: great to have some time with you of ivp femail

591
00:29:47,920 --> 00:29:50,280
Speaker 3: and we've got some interesting conversation coming from you.

592
00:29:51,200 --> 00:29:54,840
Speaker 5: Yeah, let's go from London, Planet Earth to Space. United

593
00:29:54,920 --> 00:29:58,680
Speaker 5: Launch Alliance is on track. I'm told to launch Vulcan

594
00:29:58,720 --> 00:30:02,080
Speaker 5: in December. It's high energy rocket that it hopes can

595
00:30:02,080 --> 00:30:06,479
Speaker 5: compete with Falcon Heavy SpaceX's heavy launch system. Tory Bruno,

596
00:30:06,520 --> 00:30:09,360
Speaker 5: who's the Ulaco, visited us in New York and we

597
00:30:09,440 --> 00:30:13,280
Speaker 5: talked about how reliant Ula has been on Jeff Bezos

598
00:30:13,320 --> 00:30:14,360
Speaker 5: and Blue Origin have a listen.

599
00:30:15,320 --> 00:30:17,560
Speaker 13: Well, it took a little bit longer to develop this

600
00:30:17,720 --> 00:30:21,760
Speaker 13: rocket engine. It is the largest engine of that fuel

601
00:30:21,840 --> 00:30:25,280
Speaker 13: type to be successfully put together, and that just took

602
00:30:25,320 --> 00:30:27,920
Speaker 13: a little while longer. Now that the engine is developed

603
00:30:27,920 --> 00:30:32,240
Speaker 13: and qualified, we love it. Great performance. It's going to

604
00:30:32,240 --> 00:30:35,160
Speaker 13: be an awesome workhorse for us in terms of the

605
00:30:35,280 --> 00:30:39,520
Speaker 13: Ukraine situation, we weren't really affected that would have affected

606
00:30:39,560 --> 00:30:43,040
Speaker 13: the retiring Atlas five with its RD one to eighty

607
00:30:43,160 --> 00:30:46,760
Speaker 13: rocket engine. But I had anticipated ahead of time not

608
00:30:47,000 --> 00:30:50,720
Speaker 13: that Ukraine would be invaded, but that the relationship with

609
00:30:50,840 --> 00:30:52,600
Speaker 13: Russia was on a downward trend.

610
00:30:53,000 --> 00:30:53,800
Speaker 4: And once our.

611
00:30:53,680 --> 00:30:58,040
Speaker 13: Future was clear, I ordered ahead and received all of

612
00:30:58,080 --> 00:31:00,160
Speaker 13: the RD one eighties I would ever need to fly

613
00:31:00,280 --> 00:31:02,760
Speaker 13: out atlyss Now I have them in a warehouse in

614
00:31:02,800 --> 00:31:06,320
Speaker 13: Alabama and have just been flying them as I need them.

615
00:31:07,520 --> 00:31:11,240
Speaker 5: Blue Origin is itself also going under some change, some

616
00:31:11,360 --> 00:31:14,640
Speaker 5: transitions and new leadership, but the kind of constant is

617
00:31:14,720 --> 00:31:18,360
Speaker 5: Jeff Bezos, and I wondered what your relationship with Jeff is.

618
00:31:18,400 --> 00:31:23,400
Speaker 13: Like, Oh, very constructive. You know, it's a teeming arrangement.

619
00:31:23,480 --> 00:31:27,960
Speaker 13: You know, your major suppliers are always really your strategic partners,

620
00:31:28,360 --> 00:31:32,360
Speaker 13: and that's especially true for us because our big suppliers

621
00:31:32,440 --> 00:31:36,600
Speaker 13: invest in our rocket and in their product along with us.

622
00:31:36,960 --> 00:31:38,000
Speaker 13: Jeff is no different.

623
00:31:38,080 --> 00:31:39,920
Speaker 4: I was speaking to him just a.

624
00:31:39,840 --> 00:31:42,880
Speaker 13: Few days ago as we were working together to help

625
00:31:42,960 --> 00:31:46,120
Speaker 13: them ramp up their production rate for our eventual needs,

626
00:31:46,680 --> 00:31:48,920
Speaker 13: and like I said, we love the engine and I

627
00:31:48,920 --> 00:31:50,560
Speaker 13: think we're going to have a bright future together.

628
00:31:51,840 --> 00:31:54,600
Speaker 4: That's interesting. Do you find Jeff to kind of be

629
00:31:54,720 --> 00:31:55,160
Speaker 4: hands on?

630
00:31:55,360 --> 00:31:57,360
Speaker 5: Is he somebody that you can phone and sort of

631
00:31:57,400 --> 00:32:01,480
Speaker 5: talk at a high level engine nearing basis with or

632
00:32:01,560 --> 00:32:04,160
Speaker 5: is he kind of more strategic in how he deals.

633
00:32:03,960 --> 00:32:04,520
Speaker 4: With you guys?

634
00:32:04,960 --> 00:32:08,960
Speaker 13: Well, I think he is a very strategic person obviously,

635
00:32:09,600 --> 00:32:12,040
Speaker 13: but I will tell you he's a very good engineer

636
00:32:12,440 --> 00:32:15,520
Speaker 13: and he is not afraid to dive down into the details.

637
00:32:16,240 --> 00:32:18,800
Speaker 13: You know, you might find it amusing that, you know,

638
00:32:18,840 --> 00:32:21,960
Speaker 13: we nerds get together and we love to talk about

639
00:32:22,400 --> 00:32:27,880
Speaker 13: propulsion technology, and I find Jeff very easy to discuss

640
00:32:27,920 --> 00:32:31,480
Speaker 13: those issues with. He's fast, he picks them up, and he's.

641
00:32:31,360 --> 00:32:32,040
Speaker 4: A good teammate.

642
00:32:32,080 --> 00:32:34,320
Speaker 13: He'll work with you to, you know, get through the

643
00:32:34,480 --> 00:32:39,320
Speaker 13: technical challenges of doing this sort of innovative in new work.

644
00:32:42,080 --> 00:32:45,840
Speaker 5: Talking rocket so self described nerd Tory Bruno U la Ceo,

645
00:32:45,960 --> 00:32:48,720
Speaker 5: Caroline ed you are.

646
00:32:48,640 --> 00:32:50,880
Speaker 3: A self described nerd, and I'm pretty sure that they

647
00:32:51,080 --> 00:32:53,680
Speaker 3: welcome you with open arms in those conversations. You'd love

648
00:32:53,720 --> 00:32:55,719
Speaker 3: to be in them, I'm sure. Meanwhile, then let's get

649
00:32:55,720 --> 00:32:58,080
Speaker 3: a check on these markets quickly, because nerding out on

650
00:32:58,120 --> 00:33:00,280
Speaker 3: what's happening in public markets not a particular great day

651
00:33:00,280 --> 00:33:02,320
Speaker 3: for the Nasdaq. We're off by one point eight percent

652
00:33:02,360 --> 00:33:04,040
Speaker 3: on big tech at the moment. You know why, it's

653
00:33:04,080 --> 00:33:06,120
Speaker 3: all about an earnings concern that we're not quite living

654
00:33:06,200 --> 00:33:08,080
Speaker 3: up to the hype when it comes to Alphabet for example.

655
00:33:08,320 --> 00:33:10,479
Speaker 3: Maybe that's dragging down the index more broadly five year

656
00:33:10,520 --> 00:33:12,560
Speaker 3: yield as well, probably putting paid to some of the

657
00:33:12,640 --> 00:33:14,840
Speaker 3: risk exuberance as the yields back up on the long end.

658
00:33:15,240 --> 00:33:17,000
Speaker 3: Interesting in chips, We're going to be having a deep

659
00:33:17,040 --> 00:33:18,560
Speaker 3: dive on chips that you're going to talk us through

660
00:33:18,680 --> 00:33:20,720
Speaker 3: in a minute, ED. Or by three percent on the

661
00:33:20,800 --> 00:33:23,680
Speaker 3: socks as we see TI Texas instruments not living up

662
00:33:23,680 --> 00:33:25,400
Speaker 3: to expectations on earnings. Move on to some of the

663
00:33:25,400 --> 00:33:29,080
Speaker 3: individual movers because interesting takes Microsoft course does do well

664
00:33:29,120 --> 00:33:31,760
Speaker 3: on its earnings and Microsoft outperforms, but I've also been

665
00:33:31,800 --> 00:33:34,800
Speaker 3: looking what's the world a PayPal? And overall look at

666
00:33:34,800 --> 00:33:37,840
Speaker 3: what happened to this European fintech player. Worldline off by

667
00:33:37,920 --> 00:33:40,600
Speaker 3: fifty nine percent as they call out a recession over

668
00:33:40,640 --> 00:33:41,080
Speaker 3: in Germany.

669
00:33:41,200 --> 00:33:41,280
Speaker 2: ED.

670
00:33:42,560 --> 00:33:44,280
Speaker 5: Yeah, we are going to be talking chips coming up

671
00:33:44,320 --> 00:33:45,880
Speaker 5: on the show. We're going to speak to the CEO

672
00:33:45,960 --> 00:33:50,200
Speaker 5: of Qualcom Cristiano Ammon as the company unveils it's super

673
00:33:50,320 --> 00:33:54,400
Speaker 5: Dragon X processor. This is a week about PCCPUS. This

674
00:33:54,840 --> 00:33:56,360
Speaker 5: is Bloomberg Technology.

675
00:34:01,960 --> 00:34:03,680
Speaker 4: Welcome to our Bloomberg.

676
00:34:03,280 --> 00:34:06,840
Speaker 5: TV and radio audience worldwide. Qualcom is stepping up its

677
00:34:06,840 --> 00:34:10,560
Speaker 5: efforts to break into the personal computer market by unveiling

678
00:34:10,600 --> 00:34:14,879
Speaker 5: a new laptop processor designed to outperform rival products from

679
00:34:14,920 --> 00:34:18,160
Speaker 5: Intel and Apple. Joining us to discuss the new snap

680
00:34:18,239 --> 00:34:22,279
Speaker 5: Dragon X is Christiano. I'mon Qualcom CEO and you join

681
00:34:22,400 --> 00:34:26,680
Speaker 5: us from Maui at the snap Dragon Summit. Christiano, The

682
00:34:26,760 --> 00:34:29,040
Speaker 5: question that I hear over and over again, be it

683
00:34:29,040 --> 00:34:32,040
Speaker 5: from your investors or be it from the millions of

684
00:34:32,040 --> 00:34:35,040
Speaker 5: snap Dragon users and fans around the world, is how

685
00:34:35,160 --> 00:34:39,560
Speaker 5: is this fundamentally going to change the operation and functioning

686
00:34:39,920 --> 00:34:41,160
Speaker 5: of a personal computer?

687
00:34:42,480 --> 00:34:42,640
Speaker 8: Oh?

688
00:34:42,719 --> 00:34:47,239
Speaker 2: Yes, that's the reason we're very excited about what we're doing.

689
00:34:47,400 --> 00:34:49,920
Speaker 2: And I think the endorsement we get from Microsoft, I

690
00:34:49,960 --> 00:34:53,160
Speaker 2: think the presence of Microsoft in our event as well.

691
00:34:53,200 --> 00:34:57,240
Speaker 2: We have been working to build the next generation computing

692
00:34:57,280 --> 00:35:01,359
Speaker 2: device for the Windows ecosystem. Come with where we see

693
00:35:01,400 --> 00:35:05,680
Speaker 2: the conversions between the mobile and the PC. It comes

694
00:35:05,719 --> 00:35:08,680
Speaker 2: at a time that users want more mobility and more

695
00:35:08,719 --> 00:35:12,800
Speaker 2: performance and the whole experience becomes an AI experience, and

696
00:35:12,840 --> 00:35:14,560
Speaker 2: I think that's what we did with the.

697
00:35:14,480 --> 00:35:17,560
Speaker 7: Snapdragon x Elite announcement.

698
00:35:18,520 --> 00:35:21,960
Speaker 2: First of all, we're incredibly proud and especially as we've

699
00:35:21,960 --> 00:35:24,880
Speaker 2: been talking the welcome is changing from a communications company

700
00:35:24,920 --> 00:35:26,440
Speaker 2: to a connected processor company.

701
00:35:26,719 --> 00:35:30,719
Speaker 7: We just unveiled the fastest CPU.

702
00:35:29,800 --> 00:35:33,720
Speaker 2: Of any mobile computing device, of any laptop in the world,

703
00:35:34,200 --> 00:35:36,799
Speaker 2: fastest CPU in terms of performance.

704
00:35:37,120 --> 00:35:39,040
Speaker 7: We have the device here, people, we test it.

705
00:35:39,400 --> 00:35:42,160
Speaker 2: That's going to allow for you to have a lot

706
00:35:42,239 --> 00:35:45,799
Speaker 2: more performance for day applications, but also to have a

707
00:35:45,880 --> 00:35:48,080
Speaker 2: lot of AI on the device.

708
00:35:49,080 --> 00:35:49,640
Speaker 4: Christiana.

709
00:35:49,760 --> 00:35:53,360
Speaker 5: We were submitted dozens of questions from our audience, including

710
00:35:53,440 --> 00:35:57,360
Speaker 5: snap Dragon insiders on Discord for example, and actually a

711
00:35:57,440 --> 00:36:02,360
Speaker 5: reoccurring question was how the latest generation CPU can handle

712
00:36:02,640 --> 00:36:06,560
Speaker 5: specific AI functions like Microsoft Copilot.

713
00:36:05,960 --> 00:36:09,319
Speaker 4: For example on device. Can you give us any insight.

714
00:36:09,040 --> 00:36:11,759
Speaker 7: That absolutely so.

715
00:36:11,840 --> 00:36:14,600
Speaker 2: What is interesting about what we've done with this processor

716
00:36:14,680 --> 00:36:18,600
Speaker 2: not only has the fastest CPU for your everyday tasks

717
00:36:18,640 --> 00:36:21,560
Speaker 2: and gaming and all of those things, but it has

718
00:36:21,600 --> 00:36:25,480
Speaker 2: a separate engine and that is a unique differentiation from pocom.

719
00:36:26,320 --> 00:36:27,960
Speaker 7: It's called the NPU.

720
00:36:28,200 --> 00:36:32,560
Speaker 2: And it's about allowing your AI to run pervasively and

721
00:36:32,840 --> 00:36:34,480
Speaker 2: always running on the device.

722
00:36:34,520 --> 00:36:37,680
Speaker 7: So the copilot will be always running on the device.

723
00:36:37,560 --> 00:36:41,319
Speaker 2: To assist you with every task. And the NPU is

724
00:36:41,360 --> 00:36:44,160
Speaker 2: the biggest that you can performance you can find in

725
00:36:44,200 --> 00:36:47,880
Speaker 2: the device. Just as an example, we can run large

726
00:36:48,080 --> 00:36:52,200
Speaker 2: models of thirteen billion parameters natively on the device, and

727
00:36:52,239 --> 00:36:55,239
Speaker 2: we show that we have been partnered with all the

728
00:36:55,560 --> 00:36:59,680
Speaker 2: major ecosystem investing on AI from Microsoft to Meta to

729
00:36:59,719 --> 00:37:02,360
Speaker 2: Google Go and many other companies and having all of

730
00:37:02,400 --> 00:37:04,960
Speaker 2: those models running natively on the device.

731
00:37:07,160 --> 00:37:11,960
Speaker 3: It's a fascinating moment in terms of competition. Cristiano as well,

732
00:37:12,000 --> 00:37:14,040
Speaker 3: it has been a couple of days ago reports in

733
00:37:14,160 --> 00:37:16,680
Speaker 3: Video is going to be challenging the space as well

734
00:37:16,680 --> 00:37:19,239
Speaker 3: with its own ARM based processes for PCs. You've got

735
00:37:19,280 --> 00:37:23,120
Speaker 3: Apple of course showing its prowess in the area. How

736
00:37:23,160 --> 00:37:25,279
Speaker 3: do you set yourself apart from what is going to

737
00:37:25,280 --> 00:37:29,280
Speaker 3: be a real rushed and PC area.

738
00:37:29,360 --> 00:37:32,840
Speaker 2: I actually think the announcements to happen, especially the Vida announcement,

739
00:37:32,960 --> 00:37:35,280
Speaker 2: is one of the best things that could have happened.

740
00:37:35,040 --> 00:37:36,200
Speaker 7: For our efforts in the PC.

741
00:37:36,400 --> 00:37:38,960
Speaker 2: We have been talking for a while since we embark

742
00:37:39,000 --> 00:37:43,000
Speaker 2: on this journey with Microsoft that the PC market is

743
00:37:43,080 --> 00:37:46,600
Speaker 2: moving to an ARMED compatible away from the x eighty

744
00:37:46,640 --> 00:37:49,240
Speaker 2: six into an ARM compatible instruction set.

745
00:37:49,400 --> 00:37:50,839
Speaker 7: The Nvidia announcement is.

746
00:37:50,840 --> 00:37:54,319
Speaker 2: Devalidation that that is the new market and that is

747
00:37:54,360 --> 00:37:57,120
Speaker 2: the new tam for welcoming. It comes at a perfect

748
00:37:57,160 --> 00:38:00,520
Speaker 2: time that we have been diversifying the company in looking

749
00:38:00,560 --> 00:38:04,920
Speaker 2: for new opportunities and in market for technology, and we

750
00:38:05,080 --> 00:38:09,280
Speaker 2: had started on this journey for at least the past

751
00:38:09,320 --> 00:38:11,440
Speaker 2: three to four years I think twenty four.

752
00:38:11,680 --> 00:38:14,560
Speaker 7: With the new Windows and I Windows AI that comes

753
00:38:14,560 --> 00:38:15,120
Speaker 7: to fruition.

754
00:38:15,239 --> 00:38:18,080
Speaker 2: It starts to be at the end of the twenty

755
00:38:18,160 --> 00:38:20,600
Speaker 2: twenty four material for Qualcom.

756
00:38:20,719 --> 00:38:22,400
Speaker 7: So we're really excited about that.

757
00:38:22,520 --> 00:38:25,600
Speaker 2: And we look at all those announcements and endorsement that

758
00:38:25,680 --> 00:38:28,120
Speaker 2: this whole p SEE ecosystem is moving to one and

759
00:38:28,200 --> 00:38:30,719
Speaker 2: we just developed the fastest ARMSCPU in the work.

760
00:38:32,640 --> 00:38:35,560
Speaker 3: We've got well announcement potentially as soon as next week

761
00:38:35,600 --> 00:38:39,000
Speaker 3: with Apple and three. When you've got a competitive but

762
00:38:39,040 --> 00:38:41,799
Speaker 3: a validated space, as you seem to be articulating, what

763
00:38:41,920 --> 00:38:44,880
Speaker 3: volumes do you anticipate in one for example.

764
00:38:45,160 --> 00:38:47,359
Speaker 7: Well, we're not making projections.

765
00:38:47,400 --> 00:38:49,839
Speaker 2: I think we have been very careful, especially because we

766
00:38:49,920 --> 00:38:51,759
Speaker 2: have this is a new market for us, so we

767
00:38:52,000 --> 00:38:54,800
Speaker 2: think of us as a new entrant, and if you

768
00:38:54,880 --> 00:38:58,319
Speaker 2: look at of the size of this market, I think

769
00:38:58,719 --> 00:39:01,560
Speaker 2: even if we get, you know, a smaller share, it's

770
00:39:01,560 --> 00:39:04,800
Speaker 2: a significant growth opportunity for Quodcam.

771
00:39:05,200 --> 00:39:07,360
Speaker 7: And we're excited about what we have developed.

772
00:39:07,400 --> 00:39:09,919
Speaker 2: The parts competitive and one thing we haven't mentioned about

773
00:39:09,920 --> 00:39:14,080
Speaker 2: it besides the performance, the power, which is our DNA

774
00:39:14,400 --> 00:39:17,239
Speaker 2: of making very power efficient devices for better in life

775
00:39:17,320 --> 00:39:21,400
Speaker 2: is incredible. We exceeded the performance of the fastest CPU

776
00:39:21,560 --> 00:39:23,719
Speaker 2: you can get from Intel for gaming, but we do

777
00:39:23,800 --> 00:39:26,920
Speaker 2: add a seventy percent less power as an example.

778
00:39:28,239 --> 00:39:31,439
Speaker 5: For our Bloomberg television and radio audiences worldwide. We're joined

779
00:39:31,440 --> 00:39:35,600
Speaker 5: by Quowcom CEO Christiano Amon from the snap Dragon conference

780
00:39:35,680 --> 00:39:38,919
Speaker 5: in Maui. You just mentioned power. The claim is that

781
00:39:39,400 --> 00:39:43,200
Speaker 5: it's about sixty eight percent less power than the comparable

782
00:39:43,280 --> 00:39:48,120
Speaker 5: Intel processor. A really fair question is the price premium

783
00:39:48,160 --> 00:39:51,160
Speaker 5: though that your latest chip has a lot of questions

784
00:39:51,200 --> 00:39:55,239
Speaker 5: from global end market users, was like, well, how much

785
00:39:55,280 --> 00:39:57,160
Speaker 5: am I going to have to pay over the nose

786
00:39:57,520 --> 00:40:01,520
Speaker 5: to have access to a consumer electronic device that carries

787
00:40:01,560 --> 00:40:05,200
Speaker 5: Snapdragon X relative to mid and lowers his smartphone or PC.

788
00:40:06,680 --> 00:40:09,120
Speaker 2: I'm going to answer that question two weeks. The first

789
00:40:09,160 --> 00:40:11,840
Speaker 2: one is we're going to enable with this product for

790
00:40:11,880 --> 00:40:16,360
Speaker 2: you to have a thin and light laptop that you

791
00:40:16,400 --> 00:40:19,239
Speaker 2: can have the performance that you would find otherwise on

792
00:40:19,280 --> 00:40:22,680
Speaker 2: a high end gaming device. So I think, if anything,

793
00:40:22,719 --> 00:40:26,560
Speaker 2: we're going to be democratizing technology and make that an

794
00:40:26,719 --> 00:40:30,160
Speaker 2: AI running on device available for more people. And that's

795
00:40:30,200 --> 00:40:33,120
Speaker 2: easy to understand giver mobile heritage. The other part of

796
00:40:33,160 --> 00:40:36,239
Speaker 2: that is actually we look at the Snapdragon Elite x

797
00:40:36,400 --> 00:40:41,560
Speaker 2: actally as a premium Snapdragon solution which improves dramatically or

798
00:40:41,680 --> 00:40:45,000
Speaker 2: mixed and it has great financial contribution as we look

799
00:40:45,080 --> 00:40:47,040
Speaker 2: at the margin of those products.

800
00:40:47,080 --> 00:40:48,880
Speaker 7: So I think it's a win win for both sides.

801
00:40:51,000 --> 00:40:53,680
Speaker 5: One thing that you guys do really well is look

802
00:40:53,719 --> 00:40:56,680
Speaker 5: at snap Dragon and this kind of fan base you have.

803
00:40:57,200 --> 00:40:59,240
Speaker 5: You know, everyone is raved about the h one hundred

804
00:40:59,280 --> 00:41:02,040
Speaker 5: GPU from all year, but I've noticed this kind of

805
00:41:02,719 --> 00:41:08,000
Speaker 5: deep reddit, forum, discussion, discord channels dedicated to snap Dragon.

806
00:41:08,320 --> 00:41:10,640
Speaker 5: How much do you take into account the feedback from

807
00:41:10,680 --> 00:41:13,520
Speaker 5: those community and your development of the products and what

808
00:41:13,560 --> 00:41:15,960
Speaker 5: it can actually do a lot.

809
00:41:16,120 --> 00:41:19,400
Speaker 2: I think one of the things we do well is

810
00:41:19,719 --> 00:41:21,799
Speaker 2: we have been nurching this community by the way that

811
00:41:21,880 --> 00:41:24,359
Speaker 2: both of you should be a Snapdragon insiders, you may

812
00:41:24,360 --> 00:41:27,440
Speaker 2: be missing out, and we've been nurching this community.

813
00:41:27,560 --> 00:41:32,600
Speaker 7: It's growing very fast, is over fourteen million, and those are.

814
00:41:32,600 --> 00:41:37,480
Speaker 2: Tech enthusiasts and they really love the technology, your advanced users,

815
00:41:37,640 --> 00:41:39,520
Speaker 2: and they give us a lot of insights and we

816
00:41:39,640 --> 00:41:40,920
Speaker 2: really like that relationship.

817
00:41:43,440 --> 00:41:46,240
Speaker 3: Oh ultimately, I mean I remember when we were first

818
00:41:46,280 --> 00:41:48,160
Speaker 3: coming and sitting down with you a couple of years ago,

819
00:41:48,200 --> 00:41:50,839
Speaker 3: it was all about supply chain issues when it came

820
00:41:50,880 --> 00:41:53,080
Speaker 3: to chips and how you navigated that. Is there any

821
00:41:53,120 --> 00:41:55,400
Speaker 3: sort of concern when you're thinking about unleashing these new,

822
00:41:55,440 --> 00:41:58,479
Speaker 3: more powerful PC processes now.

823
00:41:58,520 --> 00:42:01,400
Speaker 2: The supply chain I think crisis we had in some

824
00:42:01,440 --> 00:42:08,000
Speaker 2: microductor industries behind us, and we actually look into the

825
00:42:08,040 --> 00:42:12,840
Speaker 2: future as the most exciting thing now is how AI

826
00:42:13,200 --> 00:42:16,799
Speaker 2: is developing on device outside the data center, and it's

827
00:42:16,840 --> 00:42:19,920
Speaker 2: going to touch phones, going to touch PCs, is going

828
00:42:19,960 --> 00:42:22,920
Speaker 2: to touch cars, and we're looking maybe we have an

829
00:42:22,920 --> 00:42:25,359
Speaker 2: opportunity to create a whole new cycle and the.

830
00:42:25,360 --> 00:42:28,920
Speaker 7: Phone business and generate growth in the phone business as

831
00:42:28,960 --> 00:42:29,760
Speaker 7: well with AI.

832
00:42:32,719 --> 00:42:38,120
Speaker 5: Cristiano, I want to be sort of reflective for a minute.

833
00:42:38,200 --> 00:42:41,200
Speaker 5: You and many of your peers have tried to bring

834
00:42:41,400 --> 00:42:45,800
Speaker 5: on based CPUs to PCs for a decade. And fundamentally,

835
00:42:46,440 --> 00:42:49,920
Speaker 5: the personal computer has not changed for a decade. The

836
00:42:50,000 --> 00:42:53,719
Speaker 5: ecosystem around X seven eighty six, for example, Massive, It's

837
00:42:53,760 --> 00:42:56,600
Speaker 5: been tried, tested, Why now, why is this going to

838
00:42:56,600 --> 00:42:59,400
Speaker 5: be any different from what you've tried in the last

839
00:42:59,400 --> 00:42:59,920
Speaker 5: ten years?

840
00:43:00,920 --> 00:43:03,600
Speaker 2: Okay, let me let me bring you a different perspective

841
00:43:03,920 --> 00:43:07,120
Speaker 2: because there's a number of different vectors that are changing

842
00:43:07,160 --> 00:43:08,840
Speaker 2: the PC. And by the way, I you know, I

843
00:43:08,840 --> 00:43:11,200
Speaker 2: think we need to get We need to say Apple

844
00:43:11,239 --> 00:43:13,840
Speaker 2: did a very good job when they developed the M

845
00:43:14,000 --> 00:43:17,960
Speaker 2: series and creating a PC the base on a mobile

846
00:43:18,120 --> 00:43:21,880
Speaker 2: SEC architecture and uh, and that's one of the things

847
00:43:21,920 --> 00:43:23,920
Speaker 2: that we have been working to do the same and

848
00:43:23,960 --> 00:43:27,719
Speaker 2: create the best possible performance next generation PC for the

849
00:43:27,760 --> 00:43:28,680
Speaker 2: Windows ecosystem.

850
00:43:28,680 --> 00:43:29,720
Speaker 7: But the reason this is different.

851
00:43:30,200 --> 00:43:33,040
Speaker 2: First of all, I'm talking to you right now via

852
00:43:33,160 --> 00:43:36,680
Speaker 2: my PC, and PC became a communication device.

853
00:43:37,280 --> 00:43:37,680
Speaker 7: Uh.

854
00:43:38,040 --> 00:43:43,640
Speaker 2: We we took working uh with mobility to the next level.

855
00:43:43,760 --> 00:43:47,840
Speaker 2: And then the biggest piece is the fact that AI

856
00:43:48,160 --> 00:43:51,000
Speaker 2: is changing the user experience. If you think about Microsoft's

857
00:43:51,040 --> 00:43:54,400
Speaker 2: doing a co pilot, even with Microsoft said about the

858
00:43:55,160 --> 00:43:58,239
Speaker 2: price of the co pilot, which I actually think is

859
00:43:58,320 --> 00:44:01,839
Speaker 2: inexpensive if you think about the productivity increases that can

860
00:44:01,880 --> 00:44:04,080
Speaker 2: do for many enterprises.

861
00:44:04,840 --> 00:44:05,760
Speaker 7: Debt is changing.

862
00:44:05,800 --> 00:44:07,799
Speaker 2: It's going to be a different type of device and

863
00:44:07,840 --> 00:44:09,759
Speaker 2: that's what we're working on, and that's going to be

864
00:44:09,800 --> 00:44:12,680
Speaker 2: a bright new feature. We're going to bring a lot

865
00:44:12,719 --> 00:44:15,520
Speaker 2: of excitement and hopefully a new upgrade cycle for.

866
00:44:15,600 --> 00:44:18,120
Speaker 4: PC's well come.

867
00:44:18,200 --> 00:44:22,719
Speaker 5: CEO Christianamon from Snapdragon in MAUI, thank you for your time.

868
00:44:23,800 --> 00:44:27,600
Speaker 4: Thank you, Caroline.

869
00:44:27,800 --> 00:44:31,319
Speaker 5: You know, he's trying to outline a world where we're

870
00:44:31,400 --> 00:44:34,000
Speaker 5: using a generative AI tool on our phone or PC,

871
00:44:34,200 --> 00:44:36,319
Speaker 5: even in airplane mode, and you and I play with

872
00:44:36,360 --> 00:44:39,920
Speaker 5: all these tools, chat gpt bard on our desktops right

873
00:44:40,000 --> 00:44:44,680
Speaker 5: and is stable Internet? It's hard to imagine though, yeah

874
00:44:44,719 --> 00:44:45,000
Speaker 5: it is.

875
00:44:45,040 --> 00:44:47,839
Speaker 3: And ultimately many have been wondering when Apple really gets

876
00:44:47,880 --> 00:44:49,839
Speaker 3: into the sphere of AI that little bit more. Much

877
00:44:49,880 --> 00:44:52,360
Speaker 3: of it has been question about, of course, the privacy angle,

878
00:44:52,360 --> 00:44:54,480
Speaker 3: the fact that you do want it within your actual device,

879
00:44:54,520 --> 00:44:56,960
Speaker 3: and how much this is also intertwined with I just

880
00:44:56,960 --> 00:44:59,880
Speaker 3: think about sitting down the arm CEO around the IPO

881
00:45:00,000 --> 00:45:03,120
Speaker 3: they're listing and was all about moving into the world

882
00:45:03,120 --> 00:45:05,279
Speaker 3: of PCs, the fact that they are diversifying it's not

883
00:45:05,280 --> 00:45:06,400
Speaker 3: just about smartphone anymore.

884
00:45:06,520 --> 00:45:06,560
Speaker 13: Ed.

885
00:45:07,360 --> 00:45:09,400
Speaker 5: Yeah, and as a self described nerd, I've learned so

886
00:45:09,520 --> 00:45:12,040
Speaker 5: much this year about specific CPUs, and I know our

887
00:45:12,080 --> 00:45:14,200
Speaker 5: audience have so many questions that we got to there.

888
00:45:15,640 --> 00:45:17,840
Speaker 3: I'm glad that you were, maybe on this occasion not

889
00:45:17,840 --> 00:45:19,359
Speaker 3: going to have to do some weightlifting with them as

890
00:45:19,360 --> 00:45:21,280
Speaker 3: well as you did with the in video one. Meanwhile,

891
00:45:21,400 --> 00:45:23,520
Speaker 3: when that does it for this edition of Bloomberg Technology,

892
00:45:23,600 --> 00:45:24,640
Speaker 3: buy from London.

893
00:45:26,200 --> 00:45:29,160
Speaker 5: Check out the podcast wherever you get yours. This is

894
00:45:29,200 --> 00:45:31,160
Speaker 5: Bloomberg Technology.