Speaker 1: From Mahart where Innovations, Money and Power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: I'm Caroline Heide of Bloomberg's world headquarters in New York.
Speaker 4: Ed Ludlow, He's off today. This is Bloomberg Technology.
Speaker 3: Nazac's ten and a half billion dollar deal. We've got
Speaker 3: to talk about it. The financial software maker Denz are
Speaker 3: being bought. We'll bring the details of the exchange operators
Speaker 3: push into software. Plus, we'll break down the biggest takeaways
Speaker 3: from Xboxes Summer showcase, and none other than Phil Spencer,
Speaker 3: Microsoft Gaming CEO. And we'll speak with a former president
Speaker 3: of Tesla who currently sits on the board at GM.
Speaker 3: He's going to discuss why the ev makers charging stations
Speaker 3: are quickly becoming the industry standard.
Speaker 4: First, let's check in on these markets.
Speaker 3: Actually, SMB five roundred back in that ballmarket territory to
Speaker 3: cent off of its previous lows, managed to hold into
Speaker 3: them ahead of.
Speaker 4: The Federal Reserve.
Speaker 3: This week, in fact a jam pack week, we're hearing
Speaker 3: from Mike ni Key CPI prints retail data coming forward,
Speaker 3: and also the ECB back of Japan, you name it.
Speaker 3: There's big macro data on deck. Now's that one hundred
Speaker 3: pushing up tech outperforming on the day, we're up nine
Speaker 3: tenths percenters. Many feel that, look, we're going to get
Speaker 3: a pause at least from the Federal Reserve, the Central
Speaker 3: Bank to the world, and that means interest rates just
Speaker 3: could be keeping on a steady path for at least
Speaker 3: the next month. Bitcoin off by more than a percentage point.
Speaker 3: Yet again, we're still seeing some woes of regulatory risk
Speaker 3: being priced in. At the moment, we're off to twenty
Speaker 3: five eight hundred and thirty two is where we trade.
Speaker 3: Let's move on to some of the micro moves in
Speaker 3: terms of the individual stocks to watch Apple. I mean,
Speaker 3: when you've got a point higher on Apple, when you're
Speaker 3: moving up three tens three quarters of a percent, no
Speaker 3: wonder big tech manages to outperform, still getting that sort
Speaker 3: of hazy rosy glow post their announcement of their latest
Speaker 3: product and a lease. Tesla also at more than a
Speaker 3: percentage point. We're going to dig into how this is
Speaker 3: a record run twelve straight days against for Tesla's We
Speaker 3: think about how perhaps slightly un sexy world of charging
Speaker 3: is becoming the piesta resistance to this particular company. And
Speaker 3: we've got to talk about the downward trajectory of the
Speaker 3: company that is Nasdaq, so not the benchminent world course,
Speaker 3: it operates the benchmarket. It's all about indices, but it's
Speaker 3: also about software, about technology data.
Speaker 4: It's off by thirteen.
Speaker 3: Percent because a bit of M and A in the air.
Speaker 3: This Monday, NASDAK agreeing to buy financial software maker Adenza
Speaker 3: ten and a half billion dollars. Look, it's the exchange
Speaker 3: operator's biggest ever deal. We want to bring in other
Speaker 3: than our M and A expert now with Bloomberg opinion
Speaker 3: one Ed Hammond. And this is a company that has
Speaker 3: already made MNA to build up the software offering to
Speaker 3: be able to provide more than just prices.
Speaker 4: Is it about reducing volatility?
Speaker 5: It is about reducing volatility, I think, Fanasdek it's about
Speaker 5: reducing the independence on the markets. And obviously right now
Speaker 5: the markets are highly volatile and probably will continue to
Speaker 5: be volatile for some time. And this is something they've
Speaker 5: been you know, as you say, through M and A
Speaker 5: and indeed organically have been trying to build out for
Speaker 5: a while, sort of moving away from that pure dependence
Speaker 5: on markets, and this takes them in that direction. I
Speaker 5: think it's the biggest deal in their history, and obviously
Speaker 5: that's the way they're trying to sell it to investors.
Speaker 5: But if you just look at the way the shares
Speaker 5: are trading today, investors do not seem so taken with
Speaker 5: the idea as perhaps nos Deck would like them to be.
Speaker 3: Yeah, and some of the numbers perhaps a little underwhelming
Speaker 3: when you think about the size of the deal and
Speaker 3: the solutions business is there for going to become seventy
Speaker 3: seven percent of total revenue from seventy one percent today,
Speaker 3: So what really is this ten and a half billion
Speaker 3: dollars going to be buying them? Because it doesn't even
Speaker 3: be that are creative to their revenue immediately.
Speaker 5: Yeah, I don't think it is set accreative to their
Speaker 5: revenue immediately. I think this is part of a long
Speaker 5: term plan and a plan to as I say, rebalance
Speaker 5: the business away from the volatility that they've talked about,
Speaker 5: and investors maybe you know, look, they're looking at this
Speaker 5: and thinking this will be a good deal over time,
Speaker 5: but that may take a while to sort of come
Speaker 5: to fruition and to sort of bear the rewards that
Speaker 5: the narzdeck obviously hopes it will. I think the other
Speaker 5: thing here is, look, it is just a very big
Speaker 5: number in terms of pure dollar act. That is a
Speaker 5: it's a big deal. It's much more sizable than anything else,
Speaker 5: know stack I've ever done. And also they are giving
Speaker 5: away as part of the consideration for the deal, they're
Speaker 5: giving away to Tomo Bravo a significant amount of stock.
Speaker 5: Toma Bravo I think will become the second largest sholder
Speaker 5: with a shade under fifteen percent of the total, right
Speaker 5: behind Boors Dubai.
Speaker 4: And a board seat as well, and a.
Speaker 5: Board seat to Holden Spat, who is you know, obviously
Speaker 5: a very very senior and very successful person within Tomo Bravo.
Speaker 3: Yeah, I mean talk to us about how this company,
Speaker 3: Agenza was even built really by Toma Bravo.
Speaker 5: It's a classic Tomeo Bravo play. Something they do a
Speaker 5: lot of something. Actually they're sort of the industry leader
Speaker 5: in and something of a pioneering which is that they
Speaker 5: buy a technology asset, having already identified other technology assets
Speaker 5: that they could buy and put together with it to
Speaker 5: sort of create a bigger, better company. You know, some
Speaker 5: people would perhaps pejoratively call that a roll up strategy.
Speaker 2: I think of it.
Speaker 5: With them, it's it's slightly different because they're actually maybe
Speaker 5: just buying you know, two or three of these businesses
Speaker 5: and trying to make a sort of you know, a
Speaker 5: some greater than the past. They did that here with
Speaker 5: two companies, Axiom and a company called Calypso which they
Speaker 5: brought a few years ago, and they've put them together
Speaker 5: under a single leadership within their firm.
Speaker 2: And then obviously a finding an.
Speaker 5: Exit like this, and they've done it before, either selling
Speaker 5: companies that they've put together as a sort of single
Speaker 5: deal or taking them public through the IPO markets.
Speaker 4: Ed, so great to have you with us.
Speaker 3: Thank you very much to need Ed Hammond on the
Speaker 3: Nators big deal in the markets, We're going to turn
Speaker 3: our attention to a man who knows how to make
Speaker 3: an M and a deal or to himself and talk
Speaker 3: to CEOs about it, but also someone who's looking at
Speaker 3: how we're building the next big giants in technology, particularly
Speaker 3: when comes to AI. Daniel Newman is with us his
Speaker 3: Forturum Group CEO right here in New York, and you
Speaker 3: yourself have done a fair bit of and a you've
Speaker 3: looked to build owned businesses. Are you expecting more M
Speaker 3: and A in this market? More generally, it's interesting in
Speaker 3: the time where interest rates arriving and we know that
Speaker 3: NASA's actually taking on debt to do this, that it's
Speaker 3: an interesting moment for companies to be trying to beef
Speaker 3: themselves up.
Speaker 6: I still think there's a lot of consideration about valuation.
Speaker 6: You know, we've seen the technology market come back, so
Speaker 6: those valuations have started to rise back up. But with
Speaker 6: this rapid onset of generative AI, companies have to move
Speaker 6: faster to move their businesses in the right direction. Karen,
Speaker 6: if you think about it, we saw in less than
Speaker 6: seven months an onset of a new technology, and in
Speaker 6: the last four weeks we've seen that go from something
Speaker 6: that you had to specialize skill in house to now
Speaker 6: being able to use something like Google's Generative App Builder
Speaker 6: to be able to take your entire business and build
Speaker 6: new apps.
Speaker 2: Companies have to move quick.
Speaker 6: And M and A does give that advantage of moving
Speaker 6: faster than building things in house.
Speaker 3: Yeah, perhaps a little bit of respite from the whole
Speaker 3: thing being about generative AI in this particular deal. But
Speaker 3: talk to us about where you are seeing generative AI
Speaker 3: just suck all the oxygen from the room. You've been
Speaker 3: putting out some thought leadership around, well, who's going to
Speaker 3: be the next in video, who's going to be the
Speaker 3: next trillion dollar company to add to the club?
Speaker 6: Yeah, well, about two and a half years ago, carolen
Speaker 6: I actually called it in video, would be the next
Speaker 6: trillion dollar company.
Speaker 4: And on ai or hy on Ai on ai.
Speaker 6: Now, part of it had to do with the potential
Speaker 6: of the arm deal, but I said either way, it
Speaker 6: was the only company that fully committed to it. Every
Speaker 6: other company was kind of dabbling in it. Jensen never wavered,
Speaker 6: and when the market sort of vacillated, even back to
Speaker 6: about a year and a year ago last summer, when
Speaker 6: it was down to lows around one hundred dollars, people
Speaker 6: were saying, oh, it's done, you know, metaversus don ais slow,
Speaker 6: and then all of a sudden you see it rise back,
Speaker 6: and everyone's like they're not surprised.
Speaker 2: But people just ride the trends.
Speaker 6: And the truth is that all this generative value you
Speaker 6: hear about whether it's open ai, whether it's barred, whether
Speaker 6: it's hugging face in these large language models. Right now,
Speaker 6: they're being trained on in video. Now, are there other
Speaker 6: companies could could? Amd, Intel, Broadcom, Marvel, These other semi
Speaker 6: companies play a big part. I think there's going to
Speaker 6: be a second company, Caroline that has to rise. But
Speaker 6: right now in video's got the route and that's why
Speaker 6: it's accelerating so fast is because no one else can offer.
Speaker 6: It's the completeness of the Nvidia stack.
Speaker 3: I mean, you mentioned valuations and they're just eyewatering in
Speaker 3: video currently trading versus future.
Speaker 4: Earnings at fifty one times. I mean, it's interesting.
Speaker 3: We've been thinking about Oracle, whose earnings come out after
Speaker 3: the bell. They're being piled into because they've got a
Speaker 3: less extraordinary valuation, but still a focus on AI. Who
Speaker 3: are the other companies that you're starting to call could
Speaker 3: be trillion on a company?
Speaker 6: Some of them obviously are that I had Google and
Speaker 6: Microsoft and there I actually put Oracle on my recent
Speaker 6: list of companies. And that's because the data, the enterprise data,
Speaker 6: the rich data that sits in the Oracle ecosystem is
Speaker 6: going to have to be utilized to give companies a
Speaker 6: competitive advantage. Right now, the open AI ecosystem has almost
Speaker 6: become table stakes. Every company can tap into it. Every
Speaker 6: company can use it. You look at what Bloomberg's doing
Speaker 6: with its own GPT. You have all this rich data
Speaker 6: and that's the competitive differentiator. So does Oracle, so does SAP.
Speaker 6: Another company I really like is Service Now. I've had
Speaker 6: a number of conversations with CEO Bill McDermott about it.
Speaker 6: I think he really gets kind of this aggregation that's
Speaker 6: going to take place of software. Nobody wants to tap
Speaker 6: into a CRM and ERP and HTM, all these different tools.
Speaker 6: They want to hit one aggregation layer. They want to
Speaker 6: prompt something and say give me the thirty day forecast.
Speaker 2: Just ask it, just like we ask Google.
Speaker 6: But right now we got all these systems of record
Speaker 6: and they're really they're not that friendly to use. So
Speaker 6: this is where generators could really make a difference.
Speaker 4: To that point.
Speaker 3: I mean, every day we have another company coming on
Speaker 3: to talk to us about how they've introduced generative AI
Speaker 3: into their offerings. Will there ultimately still be the room
Speaker 3: for all of these enterprise software companies as they stand,
Speaker 3: or are you saying, actually you need an aggregator as such?
Speaker 6: Well, you know I'm here in New York to go
Speaker 6: here from Mark Benioff. He's going to do the salesforce.
Speaker 6: AI launched today. Every company seems to have a story,
Speaker 6: and we're kind of listening right now. And what I'm
Speaker 6: finding is there's two things the market's listening for. One is,
Speaker 6: can you clearly help them market understand how you're going
Speaker 6: to monetize AI content, meaning you know, adding its table stakes.
Speaker 6: There are some companies that's always been there and people
Speaker 6: aren't seeing a lot of value because they were already
Speaker 6: pricing it in. There's other companies where it's obvious and
Speaker 6: a parent and those companies have gotten a huge jolt.
Speaker 2: So as I see it, you know the AI run is.
Speaker 6: Going to take place as companies can start to articulate
Speaker 6: what is the addition of AI bringing to the table
Speaker 6: for their customers and are they able to charge any
Speaker 6: more for it and all these software comings. Right now,
Speaker 6: it seems like it's table sakes. They have to put
Speaker 6: it in, but our customer is willing to pay any
Speaker 6: more for it, and that hasn't been clear yet.
Speaker 4: Has the hype gone too far? Then?
Speaker 6: Well, I think the usability the utility of this generative
Speaker 6: AI is pretty immense, and so the hype hasn't necessarily
Speaker 6: gone too far, But has the market gotten a little
Speaker 6: bit frothy on it? How long is it going to
Speaker 6: take to catch up? I mean, look, the reason Nvidia
Speaker 6: has gone so far is because it's the shovels, the
Speaker 6: picks and axes, and it's also all the software to
Speaker 6: develop it. But at the edge, at the software and
Speaker 6: on all these devices, the utilization of generative, it's pretty
Speaker 6: unclear how we're going to update our spreadsheets to show
Speaker 6: future values.
Speaker 2: So I think we've gotten a little bit ahead of ourselves.
Speaker 6: But there's no doubt that our world is going to
Speaker 6: change and the way we work and how productive we are,
Speaker 6: it's all going to be driven by these new AI technologies.
Speaker 3: Really well articulated. Thanks so much for being here, Go
Speaker 3: enjoy the event. Daniel Newman of Forture Group.
Speaker 4: We thank him.
Speaker 3: Meanwhile, coming up gaming news, pick them fast out of
Speaker 3: Microsoft Xbox updates, new games. We're talking about the platforms
Speaker 3: as well, so much to digest the Microsoft Gaming CEO,
Speaker 3: Phil Spencer.
Speaker 4: He joins us.
Speaker 3: Next, and let's just take a quick look at Microsoft
Speaker 3: shares as we had to break because of course, this
Speaker 3: is a company that's been fueled on artificial intelligence.
Speaker 4: Hopes and dreams. It's pairing with open Ai.
Speaker 3: How much are we starting to see a focus on
Speaker 3: its own m and a of course activision Blizzard?
Speaker 4: Will that become reality? How much of a gaming.
Speaker 3: Win can it be to take away some of the
Speaker 3: extraordinary peal that its rivals have had. It also within
Speaker 3: the console market, rap three tens percent this bloom back.
Speaker 4: It's going viral. You econdo missed it.
Speaker 3: Yesterday's Microsoft just wrapping up its annual summer showcase for Xbox,
Speaker 3: announcing well thirteen new games from its own studios, not
Speaker 3: to mention the third parties, an update to its current
Speaker 3: Xbox series s with some improved storage and please to say,
Speaker 3: coming off of some of the adrenaline Russia. Is Phil Spencer,
Speaker 3: Microsoft Gaming CEO, joining us to yesterday's event in LA
Speaker 3: and you talk about the platform, you talk about the
Speaker 3: additions from the gaming line up in particular, and Phil,
Speaker 3: you call it your most ambitious games. Ever, just how
Speaker 3: crucial is it that Starfield becomes a blockbuster for you?
Speaker 7: I think in general, our first party games library is
Speaker 7: important for us for many different reasons. Starfield's obviously a
Speaker 7: big show that we focused on. We gave it over
Speaker 7: forty minutes with the Starfield direct but all of the games.
Speaker 7: I mean, one of the things I was very proud
Speaker 7: of the show yesterday was the diversity of games, games
Speaker 7: for everybody. We want to love a lot of people
Speaker 7: to love Starfield, but from the opening of Fable to
Speaker 7: games like flight simulator, Forts and Motorsport, we want to
Speaker 7: have games for everybody, and the quality of those games
Speaker 7: is very important Xbox.
Speaker 3: Let's talk about some of the prior lack of quality,
Speaker 3: if I can say it in a sort of slightly
Speaker 3: brutal mannun to you, Peel, because there is this worry
Speaker 3: about red Fall in particular, and what ultimately have been
Speaker 3: the lessons you learned from what many might see as
Speaker 3: a kind of flop when it was introduced a few
Speaker 3: a month or so ago. How are you going to
Speaker 3: differently support your own game studios in the back of that.
Speaker 7: Yeah, you know, we came off a really good run
Speaker 7: in twenty twenty one. The studio behind Redfall also did
Speaker 7: games like Death Loop, which was incredibly well received. We
Speaker 7: had Hi Fi Rush earlier this year. But gaming is
Speaker 7: a creative endeavor and teams are going to try to
Speaker 7: do ambitious things, and we want to hit our goals
Speaker 7: with everything we try to do, and sometimes that won't
Speaker 7: happen and you hit it exactly what we need to do.
Speaker 7: We need to learn, internalize what we could do better
Speaker 7: improve our process, and I believe we've done that, and
Speaker 7: I think the reaction to the show yesterday shows that
Speaker 7: gamers have a really high anticipation for the games that
Speaker 7: are coming to Xbox.
Speaker 4: Is your process then more hands on.
Speaker 7: And we definitely have tried to be hands on all
Speaker 7: the way through the process. I'd say when we acquire
Speaker 7: a studio or build a new team, the thing we
Speaker 7: want to do is work really closely with them to
Speaker 7: allow them to be the best version of the team
Speaker 7: that they can be. We've been working on Starfield with
Speaker 7: the team at Bethesda Game Studios for really years now
Speaker 7: to make sure we're going to build the right game,
Speaker 7: and helping teams realize their true vision.
Speaker 1: Is definitely part of what it means to be part
Speaker 1: of Xbox.
Speaker 3: Of course, the big elephant in the room is what
Speaker 3: you might still be buying, Phil and with twenty seven,
Speaker 3: what was it other games coming on tap?
Speaker 1: As?
Speaker 3: You say more than ten being produced in turning by
Speaker 3: your own game studios already and does this mean.
Speaker 4: That you kind of don't need Activision Blizzard.
Speaker 7: The thing that's always been unique to us when we've
Speaker 7: looked at Activision Blizzard King is the capability they have
Speaker 7: on mobile. And I know it gets lost sometimes, but
Speaker 7: the largest gaming platform in the world are people playing
Speaker 7: on their mobile phones. Activision Blizzard, through their acquisition of King,
Speaker 7: through the growth of Candy Crush, through the growth of
Speaker 7: Call of Duty Mobile, the work that they've done with
Speaker 7: Blizzard on mobile devices. That was the thing that really
Speaker 7: attracted us to Activision was actually the work that they're
Speaker 7: doing on mobile, and I'm encouraged by that is going
Speaker 7: to achieve its goals of being a global gaming platform
Speaker 7: for the over three billion people who play video games.
Speaker 7: We need to be relevant on mobile and on console
Speaker 7: and on PC, and we think Activision is an important
Speaker 7: part of that.
Speaker 3: It is an uphill battle, though it is really hard
Speaker 3: to change hearts and minds on the CMA.
Speaker 4: Do you think you can do that?
Speaker 3: Particularly with the news We understand that Activision itself is
Speaker 3: going to be granted permission to intervene in the legal dispute.
Speaker 7: Now I've been involved in this process now for over
Speaker 7: a year. It's been a learning experience for me and
Speaker 7: I reflect on our process with the European Commission, where
Speaker 7: we spend a lot of time listening to concerns, coming
Speaker 7: up with solutions that met the needs of the regulators.
Speaker 7: And as you know, we received approval in the European Commission.
Speaker 7: If you include the countries of Europe, we have approval
Speaker 7: I think in forty plus markets right now globally. You
Speaker 7: mentioned we're going to focus on the UK, We're going
Speaker 7: to focus on the US with that same approach. We
Speaker 7: want to listen to the concerns. We want to come
Speaker 7: up with active solutions that we believe we can implement
Speaker 7: and come to a good outcome for us.
Speaker 1: And we remain confident that we can do that.
Speaker 3: If and I'm sure this is an awful thing to
Speaker 3: have to think about, but everyone's got to think about
Speaker 3: all the outcomes. If you don't get it. What is
Speaker 3: your future for mobile gaming? Will you build internally? Is
Speaker 3: it about other acquisitions?
Speaker 7: It could be about both. I mean we're definitely building internally.
Speaker 1: Now.
Speaker 7: We have more Xbox users on mobile than we've ever had,
Speaker 7: but we're so small, and obviously in mobile specifically, you
Speaker 7: have two big companies in Apple and Google that really
Speaker 7: control every game that somebody sees on those platforms and
Speaker 7: all of the monetization.
Speaker 1: So for us to.
Speaker 7: Achieve our goals globally, we are going to have to
Speaker 7: find a way to build more presence on mobile. We
Speaker 7: think ABK is a great way to increase competition in
Speaker 7: the gaming market given that the largest gaming platform, mobile
Speaker 7: is controlled by two other companies. So we think it's
Speaker 7: a benefit, but it is not the strategy and to itself.
Speaker 7: The strategy itself finding new players, finding creators. We have
Speaker 7: more games being built on Xbox than we've ever had
Speaker 7: in our history right now in that mix of millions
Speaker 7: of players finding all of these games that creators are
Speaker 7: building is the magic of what we have with Xbox,
Speaker 7: and we need to extend that to mobile.
Speaker 3: And it's the way you talk about you want diversity,
Speaker 3: not only diversity of people building the games, but the
Speaker 3: use how you actually consume them. Cloud gaming of course
Speaker 3: a key feature in that in many ways, Phil, But
Speaker 3: it's interesting the UK took issue with cloud gaming worrying
Speaker 3: about your deal sort of killing that nascent space EU
Speaker 3: saying you would be a pro competitive kickstart to cloud
Speaker 3: streaming market. How is the cloud streaming market going? Is
Speaker 3: it growing at the rate you see and want?
Speaker 4: Because what is it? Only about one to three percent
Speaker 4: of the entire gaming market.
Speaker 7: Yeah, you're very right, like cloud is very small right
Speaker 7: now in the gaming in the gaming business, and even
Speaker 7: kind of on top of being small, it's usually kind
Speaker 7: of a secondary use case for somebody who's already playing
Speaker 7: on console, already playing on PC and while they're maybe
Speaker 7: traveling here in Los Angeles, not saying I'm doing this,
Speaker 7: maybe I am that I'm here, I didn't bring my
Speaker 7: console and connecting to my console games via the cloud
Speaker 7: is a great way for me to keep playing. That
Speaker 7: that means it's not really a separate market than what
Speaker 7: I'm doing on console or PC today.
Speaker 1: It's actually this secondary use.
Speaker 7: Case that's a majority of what we see in the
Speaker 7: cloud and why we're really adamant that what we see
Speaker 7: as clouds is additive to how players play today. It
Speaker 7: does give us angles into other devices like smart TVs, tablets,
Speaker 7: and mobile phones, but it's people engaging with their Xbox
Speaker 7: games when they're away from their Xbox, and we think
Speaker 7: that's a good use case.
Speaker 3: Let's talk about your Xbox then to finish Series S
Speaker 3: of course, getting more storage. Series X you've got more supply.
Speaker 3: How is the environment, the macro environment for selling this
Speaker 3: right now, because you're still very much in the third position.
Speaker 7: Yeah, in the console space position console. You're absolutely right,
Speaker 7: we're in third behind Sony and Nintendo. But our strategy
Speaker 7: is really about players, and we love the plays we
Speaker 7: find on console, like it is Xbox after all, and
Speaker 7: people like to play on their console. And as you mentioned,
Speaker 7: we just brought out or bring out the September that
Speaker 7: the new Xbox series s with more storage. But whether
Speaker 7: players are playing on our consoles, buying our consoles, playing
Speaker 7: on PC where we're seeing tremendous growth, or playing over
Speaker 7: the cloud, we really stay focused on how do we
Speaker 7: find new players. Console is a great market for us.
Speaker 7: We will continue to invest in the hardware, but our
Speaker 7: success does not depend only.
Speaker 1: On our own hardware sales.
Speaker 7: And it's great to see so many players playing Xbox
Speaker 7: across so many different devices, finding their friends, having their
Speaker 7: game library, subscribing to game Pass, or buying games however
Speaker 7: they decide to build their library. It's really about choice
Speaker 7: and finding new customers.
Speaker 3: Did you have any second disperse to actually game this
Speaker 3: weekend film.
Speaker 1: I am playing a lot of Diablo for this weekend.
Speaker 3: Pil spencer, finding extra hours that the rest of the
Speaker 3: world doesn't have it. We thank you so much for
Speaker 3: spending time from Microsoft Gaming the CEO there have a
Speaker 3: good rest of your Diablo playing.
Speaker 8: Time.
Speaker 4: Now for talking tech.
Speaker 3: First up, UK Prime Minister Ishi Sunak taking steps to
Speaker 3: really drive home that Britain could be a key hub
Speaker 3: for AI research and regulation, announcing that AI labs such
Speaker 3: as Will Google's deep Mind have agreed to give the
Speaker 3: UK priority access to its research so now also outline
Speaker 3: plans for an AI task force. During a London Technique
Speaker 3: panel with deep Mind CEO Demis has harvest Now. Earlier today,
Speaker 3: Bloomberg spoke exclusively with his Harvest, where he shared well
Speaker 3: his thoughts about AI tools how it can lead to
Speaker 3: scientific and medical breakthroughs.
Speaker 9: I think in the next decade, if you, I think
Speaker 9: it could be very possible that we could build these
Speaker 9: kinds of AI tools to help the world's experts and
Speaker 9: medical researchers make some fast breakthroughs in all of these
Speaker 9: types of areas, as we've seen with Alpha fold where
Speaker 9: we've now used it to fold all two hundred million
Speaker 9: proteins known to science, and we did that in just
Speaker 9: over a year on our computational system. So that kind
Speaker 9: of acceleration, we like to call it science at digital speed,
Speaker 9: I think, is going to come to a lot more fields,
Speaker 9: including medicine.
Speaker 3: Meanwhile, Silicon Valley venture capital firm Andrews and Horowitz it's
Speaker 3: fanned to open its first international office in the UK.
Speaker 3: The new London based office, set to open later this year,
Speaker 3: will be established by the firm's crypto investment arm A
Speaker 3: sixteen Z Crypto. The move comes amid a stark industry crackdown,
Speaker 3: of course, by US regulators, and thousands of Reddit group
Speaker 3: moderators are pushing back against the platform's plan to charge
Speaker 3: third party app developers for access to the site's data.
Speaker 3: Millions of users will be locked out of their favorite
Speaker 3: subredits in the coming days as the pages go dark,
Speaker 3: so Reddit spokesperson saying the company needs to be fairly
Speaker 3: paid to continue supporting high usage third party apps. Welcome
Speaker 3: back to Blue Meg Technology. I'm Karen Hide in New York.
Speaker 3: Let's check in on these markets because nas that the
Speaker 3: benchmarks still pushing up higher. We've got so many on
Speaker 3: deck in terms of the macro. This week of course,
Speaker 3: got CPI print tomorrow. Here in the US, the Federal
Speaker 3: Reserve come Wednesdy, got the ECB to B digesting.
Speaker 4: The bag of Japan.
Speaker 3: All of this actually managing to see some stability in
Speaker 3: the US two year at the moment. So bob market's
Speaker 3: current at four point six percent, is it priced in
Speaker 3: for a pause in the Fed's move come June? But
Speaker 3: then what about July? Do we see yet another hike?
Speaker 3: We seen ten straight hikes thus far. Remember Nasdak, the
Speaker 3: owner of this benchmark nas that company is currently doing
Speaker 3: a big bit of M and A today ten and
Speaker 3: a half billion dollars, So want to watch as they
Speaker 3: get into more the.
Speaker 4: Software and services side of the business. Bitcoin under pressure
Speaker 4: just a little off by nine tenser percent.
Speaker 3: We're gonna be drilling into that a little bit more
Speaker 3: with Silmark VC a little bit later. But Bitcoin has been,
Speaker 3: of course under duress from a regulatory perspective. Let's move
Speaker 3: it on and see what's happening in the world of
Speaker 3: individual movers because well, interesting focus that we've been having
Speaker 3: overall on Oracle up six percent ahead of its numbers.
Speaker 3: People feeling really optimistic AI the driving force. But also
Speaker 3: remember this as a company that trades at twenty one
Speaker 3: times earnings, when viotain trades at fifty one times future earning.
Speaker 3: So maybe it's a better entry point if you're betting
Speaker 3: on AI biogen. Some hope they're around, in particular Alzheimer's
Speaker 3: drug being developed with a partner over in Japan. At
Speaker 3: one point eight percent, as some of the advisors to
Speaker 3: the FDA seemed to be liking some of the work
Speaker 3: done there, and Tesla up a percentage point record run
Speaker 3: twelve straight days, it could well be closing out on
Speaker 3: the higher side as yes, we priced in AI optimism,
Speaker 3: but we.
Speaker 4: Also well start to look at their.
Speaker 3: EV charging stations are set to become the industry standard
Speaker 3: for GM adopting the company's supercharger network. I mean, you
Speaker 3: please have got an expert who can talk across all
Speaker 3: of this. John McNeil's here with our CEO of DVX
Speaker 3: Ventures as well as well a former president of Tesla
Speaker 3: sits on the border. GM also started countless companies yourself,
Speaker 3: I think it was six.
Speaker 4: Do you have anything to do with it? Were you?
Speaker 4: If you're a board member of GM and you used.
Speaker 10: To work with Tesla, you know, advising Mary and the
Speaker 10: team behind the scenes for sure, but this was really
Speaker 10: driven by Mary and Elon and Mary recognizing that the
Speaker 10: biggest barrier to EV adoption is charging.
Speaker 2: I have friends that say, should I get an electric vehicle?
Speaker 10: They're often the first issue is where did I get
Speaker 10: a charged and their charges reliable? And the charging standard
Speaker 10: that has been in place outside of Tesla hasn't been
Speaker 10: that reliable. One out of four times you pull up
Speaker 10: to a charger, it doesn't work. And Marry and the
Speaker 10: GM team saw that, and they said, this is a
Speaker 10: barrier to adoption. The Tesla standard is better, it's more reliable,
Speaker 10: it doesn't break when you drop it, it's easy to handle,
Speaker 10: and therefore, to get more people in evs, we are
Speaker 10: to adopt the better standards. So it's a little bit
Speaker 10: like a beta max VHS moment where companies are choosing
Speaker 10: sides on which standard is going to.
Speaker 3: Prevail, and it seems to be, of course, Tesla's standard.
Speaker 3: You were there several years ago now, but was that
Speaker 3: ever a part of the game plan own the EV
Speaker 3: space because it's a nice little money spinner. I mean,
Speaker 3: one analyst think thing is three billion dollars a year.
Speaker 4: It could be.
Speaker 10: Yeah, it was originally just conceived to get people to
Speaker 10: get in evs and to feel confident that if they
Speaker 10: were going to take a trip that there would be
Speaker 10: a charger.
Speaker 3: There for them.
Speaker 10: Now, I think you're right, this is a bit of
Speaker 10: an AWS moment for Tesla where they're taking something that's
Speaker 10: been a cost burden for them and turning it into
Speaker 10: a revenue source.
Speaker 3: Ultimately, are there any issues with the way in which
Speaker 3: we see mass adoption using Tesla? I mean, we think
Speaker 3: about here in New York, everyone, the very governors, mayors,
Speaker 3: people trying to ensure that there's investment in EV charging
Speaker 3: and not always turning to.
Speaker 4: Tesla for that.
Speaker 3: Will that be competition in the space or we'll just
Speaker 3: admit that it'll end up being in Tesla world that
Speaker 3: we live in.
Speaker 10: I think there'll be competition in the space because essentially
Speaker 10: with Tesla's done here is they've open sourced their technology
Speaker 10: to the industry. So GM is going to be building
Speaker 10: chargers and its own chargers, but on the Tesla standard,
Speaker 10: and I think you're going to see more and more
Speaker 10: of the charging networks moving to this standard because it's
Speaker 10: just a better standard taught to us.
Speaker 3: A little bit more about where you're seeing opportunities within
Speaker 3: the EV space. Is you alsoone who's correct me if
Speaker 3: I'm wrong. DBX, the venture company that you've built in
Speaker 3: twenty twenty you first founded, it has a different model,
Speaker 3: not only in how you charge fees and the like,
Speaker 3: but it's ultimately about building companies within your incubating ideas
Speaker 3: and bringing a CEO.
Speaker 4: To match with that.
Speaker 2: That's exactly right.
Speaker 4: You're trying to fix the world of EBAs.
Speaker 1: Yeah, yeah, we are.
Speaker 10: We're active because this ecosystem is going to grow so quickly.
Speaker 10: Like we're talking about chargers now, and there are forty
Speaker 10: thousand fast chargers in the US, there are four.
Speaker 2: Million in China.
Speaker 10: It just gives you a sense of the growth that
Speaker 10: we're going to see here as we convert from gas
Speaker 10: cars to electric cars, and we're playing in that space.
Speaker 2: So you're right.
Speaker 10: We were different in then our fund charges no fee,
Speaker 10: no carry. But we're also different in that we invent
Speaker 10: the companies from the start and we own one hundred
Speaker 10: percent of them from the start. And so we've got
Speaker 10: a company called Kirby, which is for EV and gas
Speaker 10: cars where the cars are serviced in the customer's driveway.
Speaker 2: Eighty percent of what you can fix in the customer's car.
Speaker 10: We figured out at Tesla was was something you could
Speaker 10: do in a customer's driveway. So Kirby shows up, it
Speaker 10: fixed the car.
Speaker 2: Magically.
Speaker 10: You don't have to go anywhere, sign anything, do anything,
Speaker 10: and it takes all this hassle out of the maintenance
Speaker 10: of these kinds of cars.
Speaker 3: What do you see about the last mile in general
Speaker 3: and the offering there. You were executive of Lyft for
Speaker 3: about a year when it went public, and I'm thinking
Speaker 3: about the way in which I get to work, which
Speaker 3: is biking.
Speaker 4: This is a company that's under duress. We all know this,
Speaker 4: and we have sat.
Speaker 3: Down with a new CEO and he's talked about perhaps
Speaker 3: a sale not being off the table. How do you
Speaker 3: see us all future of transit if ultimately VC backed
Speaker 3: companies kind of can't quite work out the business model
Speaker 3: wants they're public.
Speaker 10: I think there are, like you said, in the last mile,
Speaker 10: there are opportunities for rides that are less than a mile.
Speaker 10: It's typically like a biker, a scooter. More than a mile,
Speaker 10: it may be an electric bike in more than three
Speaker 10: or five miles, it's probably some sort of vehicle like
Speaker 10: a car. And so there are companies that have been
Speaker 10: successful in this space. Tier in Europe is one where
Speaker 10: it's got micro mobility spread across the continent. Same with
Speaker 10: Bolt and here in the US line and so you've
Speaker 10: had successful micromobility models emerge that are VC backed and
Speaker 10: are poister return capital or investors. So I think we'll
Speaker 10: see more of the future of micromobility that's electric.
Speaker 3: Do you think lift will be around as a name
Speaker 3: in that last mile?
Speaker 10: I think the industries is structured for two players at least,
Speaker 10: so I don't think we're going to see a structural.
Speaker 2: Monopoly with just one.
Speaker 10: And so I think here in the US you're going
Speaker 10: to continue to see Uber and Lyft douke it out
Speaker 10: city by city.
Speaker 4: John, it's been great having some time with you.
Speaker 3: Thank you for giving us the areas that you're looking
Speaker 3: to build in and some of the experience and the
Speaker 3: companies to sit on boards of John McNeil, of course
Speaker 3: DVX Ventures I hear in New York wastelits.
Speaker 4: Some of his time.
Speaker 3: Meanwhile, let's talk about another story that we'll continue to watch.
Speaker 3: South Korean prosecutors, in particular accusing a former Samsung executive
Speaker 3: stealing trade secrets. The sixty five year old was arrested
Speaker 3: Monday for allegedly working with a Taiwanese backed company steel
Speaker 3: blueprints and designs in order to replicate an entire chips
Speaker 3: plant in China that the case could spot tensions, of
Speaker 3: course between US allies Career and Taiwan, two of the
Speaker 3: most important centers for chip making.
Speaker 4: Coming up, we could talk about well the world of fertility.
Speaker 3: Pinnacle Fertility partnering with Tomorrow Life Sciences to adopt the
Speaker 3: world's first and only automated platform for the safe management
Speaker 3: and storage of frozen eggs and embryos. Talking about technology
Speaker 3: in healthcare. Right next, this is Bloomberg Pinical Fertility. It's
Speaker 3: just announced that it has partnered with Tomorrow Life Sciences
Speaker 3: to adopt the world's first and only automated platform for
Speaker 3: the safe management and storage of patients frozen eggs and embryos.
Speaker 3: I'm please to welcome to the show to talk about
Speaker 3: all this, Beth Son Right, CEO of Pinnicle Fertility, as
Speaker 3: well as Tara Kamont, CEO Tomorrow Life Sciences, and Beth
Speaker 3: I want to start with you because you bring to
Speaker 3: what it is one of the largest fertility networks a
Speaker 3: business acumen here with your background and consulting, and I'm
Speaker 3: thinking of how in which you think even the macro environment,
Speaker 3: that this is the time to invest in such technology
Speaker 3: what you drew you there, Beth.
Speaker 11: Well, Caroline, it's really interesting. The fertility industry is changing
Speaker 11: very rapidly right now, and you'll see more and more
Speaker 11: large employers actually beginning to give their employees access to
Speaker 11: fertility treatments that they've always needed.
Speaker 1: But never been able to afford.
Speaker 11: So you see employers like wal Mart and Starbucks and
Speaker 11: Amazon increasing this access. You also see this trend through
Speaker 11: education and social media for young women who aren't ready
Speaker 11: to have children now but now understand that they might
Speaker 11: want to later. See of this increasing demand for fertility preservation.
Speaker 11: And when you take these two things together, you realize
Speaker 11: that we have just like really unsurpassed numbers of patients
Speaker 11: coming into fertility clinics right now, and the industry has
Speaker 11: yet to change with technology. So it's so critical that
Speaker 11: we meet patients with the technology they need and improve
Speaker 11: our operations within our clinics and our partnership with Tomorrow
Speaker 11: is just one step towards this technology revolution and that's
Speaker 11: happening in healthcare.
Speaker 3: And Tara, you bring that tech, You've now reached what
Speaker 3: fifty clinics at least about twenty percent of the market
Speaker 3: share overall. And it is this discussion, I mean, it's
Speaker 3: become less taboo. Ultimately, we're discussing it more within friendships.
Speaker 3: Is there more money being brought into the system as well?
Speaker 4: There's a tipping point absolutely.
Speaker 8: Tomorrow as an innovation and a technology company is fast
Speaker 8: becoming the new standard of care in the field. As
Speaker 8: Beth alluded to, the field over its forty five years
Speaker 8: of existence has seen huge growth and has encountered incredible
Speaker 8: medical ad advancements over those years, but really the tools
Speaker 8: and the technology to support these clinicians have not kept up.
Speaker 8: We're at a point today whether are millions of frozen
Speaker 8: eggs and embryos being managed and stored around the world
Speaker 8: and even in the US here, and yet those systems
Speaker 8: that manage these incredibly precious, valuable specimens are still for
Speaker 8: the most part, manual, paper based, inefficient life with risk
Speaker 8: error and really in dire need and overdue for technology
Speaker 8: and innovation, streamlining, whether it's clinicians or patients, or to
Speaker 8: your point, with money coming into the field financial investors,
Speaker 8: and there's been a huge amount of capital come into
Speaker 8: the field in the last few years. The future of
Speaker 8: fertility is certainly tech enabled and we're proud to play
Speaker 8: a leading role in that transition.
Speaker 3: And Beth, how easier sell or not was it to
Speaker 3: your partners, the physicians and you are aligned with how
Speaker 3: much was an easier sell to your own financial back
Speaker 3: is that this is the wise investment and where else
Speaker 3: might be the next step?
Speaker 11: You know, it's actually quite a difficult cell. And I
Speaker 11: think Terror could also speak to this with tomorrow. But
Speaker 11: when you have a high science industry like fertility, where
Speaker 11: success for patients has has you know, changed and innovated
Speaker 11: over the time, but changing and operation and you know,
Speaker 11: accessing new technology scary, it's not what healthcare is good at,
Speaker 11: and it takes a lot of time and attempt and
Speaker 11: takes massive rollouts. So this was not an easy step.
Speaker 11: I think Pinnacle Fertility is really innovating in technology and
Speaker 11: in this space, and clinics that opt into joining the
Speaker 11: Pinnacle network. No ahead of time that we're going to
Speaker 11: be very tech focused. Were all doing one medical records platform,
Speaker 11: and we are all looking towards the next innovation in
Speaker 11: the field, especially within our operational model, to be able
Speaker 11: to sort of service patients with sort of this next
Speaker 11: generation of technology that they're really looking for, whether it
Speaker 11: be texting a navigator in someone who can coordinate their
Speaker 11: care forty hours a week to better understand sort of
Speaker 11: what comes next in their journey to being able to
Speaker 11: see their embryos in storage and a safe environment in
Speaker 11: the same tech platform. So from sort of start to
Speaker 11: finish at Pinnacle, we are very much checked forward and
Speaker 11: looking at all of the different innovations and putting them
Speaker 11: into our network. But each rollout and each change needs
Speaker 11: to be very thoughtful and it's actually quite a hard sell.
Speaker 11: So kudos to our physic some Lar network for choosing
Speaker 11: this as a team.
Speaker 3: And Tara Qudos to your selling expertise.
Speaker 4: I'm sure in some way I'm interested in the next
Speaker 4: innovation for you.
Speaker 3: I mean, I hate to talk about AI, but I'll
Speaker 3: talk about AI because that's all anyone in the tech
Speaker 3: world wants to discuss. At the moment, where are you
Speaker 3: seeing tomorrow life sciences lean into where is your industry
Speaker 3: currently thinking the next area of fertility management can come
Speaker 3: from from a technology perspective.
Speaker 8: Well, look, I think you know. We've started with what
Speaker 8: one could argue is almost the hardest part of the
Speaker 8: IVF lab today, the management of these millions of frozen
Speaker 8: eggs and numbryers. And I'm completely aligned with Beth as
Speaker 8: she talks about patients and patient demanding increased care and
Speaker 8: better standards and transparency. I think as a demographic today,
Speaker 8: the patients that we see seeking fertility help, whether that
Speaker 8: be to build their families through IVF or the increasing,
Speaker 8: significantly increasing numbers of younger women turning to fertility preservation
Speaker 8: and freezing their eggs, these people and patients are looking
Speaker 8: for safety. They're demanding safety, They're demanding transparency, They're demanding
Speaker 8: a better standard of care. And that's something that by
Speaker 8: employing something like the Tomorrow platform, with its digitization of
Speaker 8: specimen management and then its automation of processes within the lab,
Speaker 8: we remove and reduce potential points of failure that existed
Speaker 8: within manual systems by ninety four percent. So the whole
Speaker 8: world is becoming educated around how technology and innovation can
Speaker 8: really be enablers for the next forty five years of
Speaker 8: IVF and certainly automating further upstream within the lab elsewhere
Speaker 8: into what are still heavily heavily manual, fairly inefficient, high
Speaker 8: workload processes. Is there's a huge amount of work still
Speaker 8: to be done there that Tomorrow's planning to lead the
Speaker 8: way in and AI, you know you mention it. It
Speaker 8: is obviously the hot topic. There's already AI beginning to
Speaker 8: find its way into the IVF lab when it comes
Speaker 8: to things like assessing and selecting embryos or sperm or
Speaker 8: eggs within the within the IVF process.
Speaker 4: So I think all of that to say we are just.
Speaker 8: At the beginning of this journey, but the beginning of
Speaker 8: this journey for.
Speaker 4: This part of healthcare as a whole.
Speaker 5: We have a huge gap.
Speaker 8: Between the number of people in this world who need
Speaker 8: help building their families and the number of people that.
Speaker 4: The fertility healthcare sector serves today.
Speaker 8: And we can only close that gap by embracing technology
Speaker 8: and innovation, whether it's automation, AI, machine learning, or so on.
Speaker 8: And we're excited to be partnering with clinics like Pinnacle
Speaker 8: and others to be leading the way in that revolution
Speaker 8: and really increasing safety, transparency and ultimately access to care
Speaker 8: for patients.
Speaker 4: Let's keep talking about it. To our kamand thank you
Speaker 4: very much.
Speaker 3: Indeed to our life science is Beth Snaik of Pinnacle Fertility.
Speaker 3: We really appreciate you both joining us on the news.
Speaker 3: It looks as though we have yet further breaking news
Speaker 3: coming to Google, which will be hit with a formal
Speaker 3: antitrust complaint from the European Union as soon as Wednesday
Speaker 3: and could ultimately lead to yet further findes. Remember, Alphabet,
Speaker 3: the owner of Google, has already had some eight billion
Speaker 3: euros and EU penalties thus far.
Speaker 4: This we ended.
Speaker 3: The so called statement of objections could be coming midweek.
Speaker 3: It's going be this escalation and really the focus on
Speaker 3: what is its advertising technology that look drives most of
Speaker 3: the US firm's revenue overall, and the new charges will
Speaker 3: target the core therefore of its units ad tech business model.
Speaker 3: We understand, and it's the most I mean significant and current.
Speaker 4: Five year mandate that the EU's.
Speaker 3: Had in terms of looking at Alphabet, We're currently still
Speaker 3: up two tenths of a percent, so no great shock
Speaker 3: to the market as it stands.
Speaker 4: We will wait that breaking news come Wednesday.
Speaker 3: Now, let's just pivot away from the world of alphabet
Speaker 3: to what else everyone's watching when it comes to regulators,
Speaker 3: and it's right here in the United States. Crypto of
Speaker 3: course are playing close attention to really a number of
Speaker 3: laws suits so far brought by the SEC against certain
Speaker 3: crypto related companies. Joining US now to share her thoughts
Speaker 3: on whether this helps hinders the sector in general, her
Speaker 3: own investment philosophy around it at Lease Colleen still Mark,
Speaker 3: founder managing Partner VC with eighty five million dollars in
Speaker 3: assetsunder management. It's always so great to catch up with earliest,
Speaker 3: particularly as you're so straight talking when it comes to
Speaker 3: ultimately what this all means, what if a bitcoin? It's
Speaker 3: interestingly the price perspective has been relatively resilient amid what
Speaker 3: have been some hefty focus coming from the SEC, whether
Speaker 3: it be Binance, whether it be Coinbase.
Speaker 4: How much does.
Speaker 3: The impact and the focus on exchanges have on the
Speaker 3: underlying technology for.
Speaker 12: You, It's great to see you, Caroline. So the actions
Speaker 12: taken against Coinbase and Binance are of course very different.
Speaker 12: In coinbases case, the SEC is purely focused on which
Speaker 12: of the cryptocurrency's coinbas lists on in exchange should be
Speaker 12: defined under the current current regulatory framework.
Speaker 4: Is unregistered securities.
Speaker 12: And here it's important to note that there's a distinction
Speaker 12: between bitcoin and cryptocurrency, and that was in fact referenced
Speaker 12: by the SEC and the guidance they provided before these
Speaker 12: actions and then again with the actions taken. And specifically,
Speaker 12: what they're looking at is that there's no company or
Speaker 12: team in bitcoin that can control the supply or affect
Speaker 12: the rate of issuance. And where that's not true in
Speaker 12: the cryptocurrency space, under the current regulatory framework, crypto may
Speaker 12: be considered in unregistered security, and this is what the
Speaker 12: SEC's action against coin based explores.
Speaker 4: Ultimately, do you think it's.
Speaker 3: Beneficial for the sector in general that we get some
Speaker 3: sort of regulation, I mean, regulation is being driven in
Speaker 3: the UAE, in Hong Kong, in the UK in any ways,
Speaker 3: many feeling that there's a bit of a void here in.
Speaker 4: The United States.
Speaker 3: But even if it is not actually in any way
Speaker 3: affecting what bitcoin is or how and which it is processed,
Speaker 3: it can't be a great It can't serve adoption in general,
Speaker 3: particularly either by corporates or by consumers in terms of
Speaker 3: willingness to hold in trade.
Speaker 12: Yes, so of course it's positive for bitcoin. There's no
Speaker 12: effect because bitcoin and is decentralized and not covered under
Speaker 12: the SEC's actions for cryptocurrencies, this could be an existential threat.
Speaker 12: The SEC has suggested that the current regulatory framework applies
Speaker 12: to crypto, and so what coinbase will argue, will fight
Speaker 12: in court, is whether or not that's an appropriate framework
Speaker 12: to guide crypto regulatory the regulatory regime going forward. Clarity
Speaker 12: around that will be positive for the ecosystem broadly. Now.
Speaker 12: At the same time, bills will be advanced to adjust
Speaker 12: a framework or to design a framework specifically for crypto,
Speaker 12: and so it's important to coinbases to see the cadence
Speaker 12: with which that advances and how that matches up against
Speaker 12: the pace we move through the courts with these SEC actions.
Speaker 3: How does it change the way in which you want
Speaker 3: to be investing right now?
Speaker 4: If at all is it?
Speaker 3: Are you're seeing it mora opportunities to be investing in
Speaker 3: companies at the moment around the bitcoining coasystem in particular,
Speaker 3: I know you back the Bitcoin Lightning Network.
Speaker 12: Right So, because we're focused on bitcoin and because we've
Speaker 12: been conservative in our approach to how we understand bitcoin
Speaker 12: interacts with current regulation. It actually doesn't affect Stillmark at all.
Speaker 12: So instead we're focused really on what the best and
Speaker 12: brightest founders in the space are advancing, and much of
Speaker 12: that has been in the lightning space, exactly as you say.
Speaker 12: So we are seeing increased adoption in the lightning space,
Speaker 12: including from large enterprise. So for example, recently Group of
Speaker 12: Salinas out of Mexico announced a partnership with Ibex Mercado
Speaker 12: to adopt lightning for payments.
Speaker 3: Alise, I always wish we had long ago. Thank you
Speaker 3: so much amid the breaking news ATLAS. Colleen Fanning managing
Speaker 3: partner at Stillmark, of course my husband does indeed, a
Speaker 3: senior manager at Coinbase from New York.
Speaker 4: This is Bremberg