1 00:00:13,280 --> 00:00:15,720 Speaker 1: I'm Caroline Hyde of Bloomberg's well teadquarters in New York 2 00:00:17,040 --> 00:00:20,200 Speaker 1: and Imed Ludlow at c e S the Consumer Electronics 3 00:00:20,200 --> 00:00:23,040 Speaker 1: Show in Las Vegas. This is a special edition of 4 00:00:23,040 --> 00:00:27,880 Speaker 1: Bloomberg Technology coming up this hour, and Amazon Genesis trading 5 00:00:27,960 --> 00:00:30,480 Speaker 1: stitch fixed to the long list of tech companies cunning 6 00:00:30,520 --> 00:00:33,920 Speaker 1: costs by laying off staff. But this is the macro picture. 7 00:00:33,960 --> 00:00:37,280 Speaker 1: The ADP projects is stronger than expected jobs report for tomorrow. 8 00:00:39,200 --> 00:00:42,839 Speaker 1: Plus the director of the Cyber Security and Infrastructure Security 9 00:00:42,920 --> 00:00:46,280 Speaker 1: Agency tells me that cyber safety is a public good 10 00:00:46,479 --> 00:00:50,920 Speaker 1: that demands quote radical transparency. We discussed with CrowdStrike CEO 11 00:00:51,159 --> 00:00:55,920 Speaker 1: George Kurtz and d surrounded by electrical autonomous vehicle technology. 12 00:00:55,920 --> 00:00:58,720 Speaker 1: Over at CS we'll hear from Mobile I CEO an 13 00:00:58,760 --> 00:01:02,960 Speaker 1: ambition to target self driving tech to hit the streets. 14 00:01:03,480 --> 00:01:06,160 Speaker 1: But first let's check in on the here, the now. 15 00:01:06,240 --> 00:01:09,000 Speaker 1: The reality is the market, and the reality that is 16 00:01:09,080 --> 00:01:11,759 Speaker 1: good news is once again bad news if you're long 17 00:01:11,800 --> 00:01:13,560 Speaker 1: these markets. Tess if I've run off by one point 18 00:01:13,600 --> 00:01:15,800 Speaker 1: one percent, nows that big tech taking the hit off 19 00:01:15,800 --> 00:01:17,559 Speaker 1: by more than one point five percent. And that's because 20 00:01:17,560 --> 00:01:20,479 Speaker 1: the macro picture once again looks resilient. When you look 21 00:01:20,480 --> 00:01:22,800 Speaker 1: at the jobs picture, the ADP number coming in stronger 22 00:01:22,800 --> 00:01:26,080 Speaker 1: than expected, those jobless claims once again showing resiliency. This 23 00:01:26,200 --> 00:01:28,760 Speaker 1: just means the Federal Reserve has the bandwidth to keep 24 00:01:28,800 --> 00:01:31,400 Speaker 1: on raising rates and many in the market therefore anticipating 25 00:01:31,640 --> 00:01:34,000 Speaker 1: that the terminal rate where interest rates will eventually go 26 00:01:34,040 --> 00:01:36,920 Speaker 1: from the Fed is about five percent by mid twenty three. 27 00:01:37,000 --> 00:01:39,679 Speaker 1: We continue to therefore see fulishists in terms of where 28 00:01:39,720 --> 00:01:42,080 Speaker 1: the dollar goes. We expect interest rates to go higher. 29 00:01:42,240 --> 00:01:44,759 Speaker 1: The dollar goes higher to we're up about five tents 30 00:01:44,760 --> 00:01:47,040 Speaker 1: six tents and percent. Flick it on. Let's dive into 31 00:01:47,040 --> 00:01:49,320 Speaker 1: the micro because without out in cs I wanted to 32 00:01:49,400 --> 00:01:51,600 Speaker 1: do a little bit of the individual companies. Western Digital 33 00:01:51,920 --> 00:01:55,160 Speaker 1: talks of a merger now amid some of this concern 34 00:01:55,200 --> 00:01:57,760 Speaker 1: around the market and indeed deals being done well. Maybe 35 00:01:57,800 --> 00:02:00,920 Speaker 1: Western Digital world team up with its JA Pennese well 36 00:02:01,040 --> 00:02:03,520 Speaker 1: competitor and maybe that force will be for good. We're 37 00:02:03,560 --> 00:02:05,760 Speaker 1: seeing the stock valley six point six percent silver Gate 38 00:02:05,760 --> 00:02:08,480 Speaker 1: though not a good news story. Let's look at, of course, 39 00:02:08,480 --> 00:02:11,720 Speaker 1: a very crypto related lender, Crypto Capital, is currently forty 40 00:02:11,800 --> 00:02:15,880 Speaker 1: two lower. Why well, because they're acting of their staff. 41 00:02:16,080 --> 00:02:19,720 Speaker 1: After of course, the amount of fall in crypto assets 42 00:02:19,720 --> 00:02:21,720 Speaker 1: meant that people drew down their deposits, they had to 43 00:02:21,720 --> 00:02:24,200 Speaker 1: sell their own assets, offered a discount, and it means 44 00:02:24,240 --> 00:02:27,240 Speaker 1: that the company is therefore in some grave issues. Silvergate Capital, 45 00:02:27,320 --> 00:02:29,480 Speaker 1: as I say, one of the worst performance, Amazon off 46 00:02:29,480 --> 00:02:31,600 Speaker 1: by more than two percent and ed. This is again 47 00:02:32,080 --> 00:02:34,280 Speaker 1: all about jobs. This is about when we get a 48 00:02:34,360 --> 00:02:37,320 Speaker 1: strong picture coming from the macro. What about the micro 49 00:02:37,400 --> 00:02:41,480 Speaker 1: picture and technology? What about Amazon saying eighteen thousand jobs 50 00:02:41,480 --> 00:02:43,920 Speaker 1: are now to go as they try to really rebalance 51 00:02:43,960 --> 00:02:46,120 Speaker 1: where the costs come into this business. And I know 52 00:02:46,160 --> 00:02:48,680 Speaker 1: you're all about the latest product, the latest unveiling, but 53 00:02:48,720 --> 00:02:50,760 Speaker 1: you've got to be hearing about chat from that on 54 00:02:50,800 --> 00:02:55,160 Speaker 1: the floor of CS. Yeah, there's certainly lots of fanfare 55 00:02:55,280 --> 00:02:58,080 Speaker 1: right here in Las Vegas, but I've spoken to bankers 56 00:02:58,120 --> 00:03:01,440 Speaker 1: and investors, for example, are in attendance, and you cannot 57 00:03:01,480 --> 00:03:04,239 Speaker 1: get away from what's happening in the world of technology. 58 00:03:04,280 --> 00:03:06,840 Speaker 1: I think what I'm hearing is that broadly they're talking 59 00:03:06,840 --> 00:03:09,320 Speaker 1: about how hard it is out there, the difficulty in 60 00:03:09,400 --> 00:03:12,960 Speaker 1: raising funds, the difficulty in managing the macro environment. Whether 61 00:03:13,000 --> 00:03:15,800 Speaker 1: you are a startup exhibiting here for the first time 62 00:03:15,800 --> 00:03:17,720 Speaker 1: on the show and floor, or you're one of the 63 00:03:17,760 --> 00:03:20,959 Speaker 1: many hundreds of Fortune five companies that have gone big 64 00:03:21,000 --> 00:03:24,040 Speaker 1: on the event. This is a speed dating opportunity, right. 65 00:03:24,080 --> 00:03:27,520 Speaker 1: You have some of the world's biggest CEOs, investors, their bankers, 66 00:03:27,560 --> 00:03:30,480 Speaker 1: their top customers, all in one place for three days 67 00:03:30,520 --> 00:03:32,560 Speaker 1: of the year, to start the year, and of course 68 00:03:32,600 --> 00:03:35,560 Speaker 1: they are talking about what is happening in this global economy, 69 00:03:35,600 --> 00:03:37,760 Speaker 1: and of course not just trying to pitch to the 70 00:03:37,800 --> 00:03:40,960 Speaker 1: consumer their latest innovations, but also what's happening with the 71 00:03:41,000 --> 00:03:44,480 Speaker 1: consumer in general. Indeed, and of course the job layoffs 72 00:03:44,520 --> 00:03:47,360 Speaker 1: or reflection of some of that worry around the consumer overall. 73 00:03:47,400 --> 00:03:49,640 Speaker 1: We've got to dig into that story. Well. Of course, 74 00:03:49,680 --> 00:03:52,120 Speaker 1: we bring in a key name, a key voice on 75 00:03:52,160 --> 00:03:54,440 Speaker 1: all things Amazon and indeed all things technology. It is 76 00:03:54,480 --> 00:03:56,920 Speaker 1: one Brad Stoneman, bugs head Global Tech Coverage, because of 77 00:03:56,960 --> 00:03:59,400 Speaker 1: course the author of Amazon Unbound and the Everything Store, 78 00:03:59,440 --> 00:04:02,280 Speaker 1: and to it an in perspective, Brad eighteen thousand is 79 00:04:02,360 --> 00:04:04,120 Speaker 1: kind of a drop in the bucket when you look 80 00:04:04,120 --> 00:04:07,600 Speaker 1: at the overall hiring and talented Amazon has, but still 81 00:04:07,920 --> 00:04:12,160 Speaker 1: it signifies something. It certainly does. Um you go back 82 00:04:12,160 --> 00:04:14,840 Speaker 1: twenty years ago after the dot com bust and Amazon 83 00:04:14,920 --> 00:04:17,719 Speaker 1: was laying people off, and Jeff Bezos had a mantra 84 00:04:18,000 --> 00:04:20,080 Speaker 1: and it was the only way out of this is 85 00:04:20,120 --> 00:04:22,359 Speaker 1: to invent our way out. And I think that the 86 00:04:22,440 --> 00:04:25,120 Speaker 1: charge right now from Andy Jazz is much different. It's 87 00:04:25,160 --> 00:04:27,120 Speaker 1: the only way out of this is to cut our 88 00:04:27,160 --> 00:04:29,200 Speaker 1: way out. And that's because if you look at the 89 00:04:29,240 --> 00:04:32,560 Speaker 1: retail business, the oldest business at Amazon, it's just in 90 00:04:32,640 --> 00:04:35,880 Speaker 1: really bad shape. It lost about two point five billion 91 00:04:35,920 --> 00:04:39,080 Speaker 1: dollars last quarter, but if you back out advertising, it's 92 00:04:39,080 --> 00:04:42,039 Speaker 1: probably much more nine or ten billion dollars. It's hard 93 00:04:42,040 --> 00:04:44,240 Speaker 1: to believe in some of that. Of course, his investments 94 00:04:44,279 --> 00:04:48,840 Speaker 1: in video and autonomous driving other experiments, but the basic 95 00:04:49,040 --> 00:04:54,040 Speaker 1: oldest business at Amazon is miserably unprofitable. Investors are clamoring 96 00:04:54,360 --> 00:04:56,920 Speaker 1: for Jasse to improve it, and his metal is really 97 00:04:56,920 --> 00:04:59,720 Speaker 1: going to be tested over these next few quarters and years, 98 00:04:59,720 --> 00:05:02,960 Speaker 1: and he's starting by cutting the cost structure. It's tough 99 00:05:03,320 --> 00:05:06,840 Speaker 1: find Jesse. How much does he have the confidence of 100 00:05:06,880 --> 00:05:08,800 Speaker 1: an investimation, how much does he have the confidence of 101 00:05:08,839 --> 00:05:12,480 Speaker 1: the founder of the business. Well, I mean, first of all, 102 00:05:12,800 --> 00:05:15,839 Speaker 1: I think it's always worth noting that he inherited a 103 00:05:15,839 --> 00:05:18,080 Speaker 1: lot of these problems. It was Bezos and maybe the 104 00:05:18,160 --> 00:05:22,240 Speaker 1: distracted final years of his tenure at Amazon, who authorized 105 00:05:22,240 --> 00:05:25,800 Speaker 1: the major ex pre pandemic and mid pandemic expansion of 106 00:05:25,800 --> 00:05:30,040 Speaker 1: fulfillment centers, of product lines, geographic expansion, and a lot 107 00:05:30,080 --> 00:05:32,279 Speaker 1: of that. Jesse has had to kind of kind of 108 00:05:32,440 --> 00:05:35,280 Speaker 1: unwide and narrow some of the ambitions and place more 109 00:05:35,320 --> 00:05:38,800 Speaker 1: strategic bets. I think he does have the confidence of 110 00:05:38,800 --> 00:05:43,239 Speaker 1: of investors, Like there's no activist investor at Amazon. There's 111 00:05:43,400 --> 00:05:47,800 Speaker 1: there's fantastical rumor about Bezos coming back that will never happen. 112 00:05:48,200 --> 00:05:51,000 Speaker 1: Jesse is the CEO for these next couple of years, 113 00:05:51,040 --> 00:05:52,719 Speaker 1: but I think it's gonna be a big test. He's 114 00:05:52,720 --> 00:05:54,920 Speaker 1: known for what he did at a WS and now 115 00:05:54,920 --> 00:05:57,400 Speaker 1: he has to prove himself as CEO of the whole business. 116 00:05:59,120 --> 00:06:01,240 Speaker 1: He's only just the day, right, Brad, that you were 117 00:06:01,240 --> 00:06:04,560 Speaker 1: speaking to Dave lymp who kind of runs the devices business. 118 00:06:04,960 --> 00:06:07,160 Speaker 1: Do we have any kind of sense of the granularity 119 00:06:07,279 --> 00:06:10,320 Speaker 1: where Amazon's cutting, where it got too bloated and needs 120 00:06:10,320 --> 00:06:12,920 Speaker 1: to pull back. Because Andy Jase was an AWS guy, 121 00:06:12,960 --> 00:06:15,320 Speaker 1: and you'd imagine that that part of the business is 122 00:06:15,320 --> 00:06:19,680 Speaker 1: almost sacred. Absolutely. I mean, you know, double digit growth 123 00:06:19,800 --> 00:06:23,039 Speaker 1: rates for for the for at least the near term future. 124 00:06:23,440 --> 00:06:26,359 Speaker 1: Still the engine of Amazon, you know, leave it alone. 125 00:06:26,760 --> 00:06:29,000 Speaker 1: Dave Limp on the Device as side got in touch 126 00:06:29,120 --> 00:06:32,080 Speaker 1: actually with myself and my colleague Matt Day to say 127 00:06:32,160 --> 00:06:35,800 Speaker 1: that the reductions in his group were more limited than 128 00:06:35,839 --> 00:06:39,279 Speaker 1: people thought. And this is my my point. These eighteen thousand, 129 00:06:39,360 --> 00:06:42,520 Speaker 1: laughs are in the core business into retail, and then 130 00:06:42,560 --> 00:06:45,320 Speaker 1: it's it's hr and recruiting, because if you're not hiring, 131 00:06:45,360 --> 00:06:48,520 Speaker 1: you don't need the recruiters. So this is really jazzy 132 00:06:48,640 --> 00:06:51,600 Speaker 1: looking at the cost structure for the very basic part 133 00:06:51,600 --> 00:06:54,320 Speaker 1: of the business. Last year was about widowing down the 134 00:06:54,360 --> 00:06:57,440 Speaker 1: experiments that that weren't that weren't working. This year is 135 00:06:57,480 --> 00:07:00,880 Speaker 1: about right sizing that main core part the business, retail, 136 00:07:01,080 --> 00:07:04,560 Speaker 1: and showing investors that Amazon's oldest business is still a 137 00:07:04,560 --> 00:07:08,480 Speaker 1: good one. We just showed that beautiful child on the screen, 138 00:07:08,520 --> 00:07:11,640 Speaker 1: which kind of demonstrates the eighteen thousand jobs being caught 139 00:07:12,160 --> 00:07:15,040 Speaker 1: in the grand scheme of Amazon size. It is small, 140 00:07:15,080 --> 00:07:17,679 Speaker 1: but it's never pleasant, of course to lose one's job. 141 00:07:18,480 --> 00:07:20,720 Speaker 1: It's not the only tech name either, that's that's taking 142 00:07:20,720 --> 00:07:25,120 Speaker 1: this action. Brad Salesforce also kind of building out already 143 00:07:25,160 --> 00:07:29,280 Speaker 1: reported plans to kind of downsize what do we know, right, 144 00:07:29,920 --> 00:07:33,080 Speaker 1: eight thousand layoffs a smaller than at Amazon, but more 145 00:07:33,120 --> 00:07:35,880 Speaker 1: consequential because that's ten percent of the staff. But look, 146 00:07:35,960 --> 00:07:38,720 Speaker 1: the story is still the same if you're a if 147 00:07:38,720 --> 00:07:42,600 Speaker 1: you're a fast growing company, investors are okay with low margins, 148 00:07:42,800 --> 00:07:45,880 Speaker 1: but when growth rates slow, they want to see profitability 149 00:07:46,200 --> 00:07:48,600 Speaker 1: and salesforce for the first time in as long as 150 00:07:48,640 --> 00:07:51,720 Speaker 1: I can remember, is guiding for the current corridor under 151 00:07:51,760 --> 00:07:55,720 Speaker 1: a ten percent growth rate. Okay, that is not great. Uh. 152 00:07:55,920 --> 00:07:58,080 Speaker 1: You know, at the same time, they've got starboard, an 153 00:07:58,120 --> 00:08:01,160 Speaker 1: activist and investor clamoring for them to cut costs. You 154 00:08:01,240 --> 00:08:05,000 Speaker 1: have executives like Brett Taylor, who was the co CEO 155 00:08:05,520 --> 00:08:09,640 Speaker 1: leaving Stewart Butterfield as Slack leaving UM you know, big 156 00:08:09,680 --> 00:08:13,880 Speaker 1: inflated head counts from recent acquisitions like Tableau that they're 157 00:08:13,880 --> 00:08:17,520 Speaker 1: now cutting back on. So it's in many respects the 158 00:08:17,560 --> 00:08:20,920 Speaker 1: same story. Investors are getting impatient and they want to 159 00:08:20,920 --> 00:08:25,720 Speaker 1: see tech companies now show more profitability. Brad, great to 160 00:08:25,760 --> 00:08:28,520 Speaker 1: catch up with you, and well, for many of viewer 161 00:08:28,640 --> 00:08:30,560 Speaker 1: they're still thinking that the worst is still to come. 162 00:08:30,600 --> 00:08:32,559 Speaker 1: So still more reports than that. Brad Stone, of course 163 00:08:32,640 --> 00:08:35,600 Speaker 1: is albody's ahead of global tech coverage and when you might, 164 00:08:35,679 --> 00:08:37,679 Speaker 1: of course have caught some of the headlines coming out 165 00:08:37,679 --> 00:08:40,120 Speaker 1: of crypto that are also jobs related. Just remember we're 166 00:08:40,120 --> 00:08:43,320 Speaker 1: thinking about Genesis, they're cutting about of their head count. 167 00:08:43,360 --> 00:08:45,760 Speaker 1: We've also heard from like the silver Gate Capital I 168 00:08:45,800 --> 00:08:48,640 Speaker 1: was talking about it earlier, laying there's also a barrels 169 00:08:48,640 --> 00:08:51,520 Speaker 1: of headlines around US authorities closing in on Sam Martin's 170 00:08:51,559 --> 00:08:55,439 Speaker 1: Fred's inner circle, New York prosecutors suing Celsius is Alex 171 00:08:55,480 --> 00:08:58,760 Speaker 1: Matchynsky of course for fraud, and fanatics slashing its steak 172 00:08:58,800 --> 00:09:03,280 Speaker 1: and soft back backed ft FAM County Digital Pool. There 173 00:09:03,360 --> 00:09:05,120 Speaker 1: was only one woman in the business who can take 174 00:09:05,200 --> 00:09:08,280 Speaker 1: us to all these different headliness is in the house. 175 00:09:08,440 --> 00:09:09,920 Speaker 1: When do we start? Can we start with the jobs 176 00:09:09,920 --> 00:09:11,600 Speaker 1: cut just because we come off the back of Amazon 177 00:09:11,600 --> 00:09:14,720 Speaker 1: and they're likes I mean silver Gate absolutely dramatic move 178 00:09:14,800 --> 00:09:16,640 Speaker 1: in the share price on the back of dramatic moves 179 00:09:16,640 --> 00:09:18,360 Speaker 1: that having to make. There's a lot of concerns that 180 00:09:18,400 --> 00:09:20,920 Speaker 1: have been drawing around silver Gate for a while now 181 00:09:21,000 --> 00:09:23,840 Speaker 1: given their exposure to the crypto industry. A few interesting 182 00:09:23,840 --> 00:09:28,080 Speaker 1: things here to note here, because eight point one billion 183 00:09:28,120 --> 00:09:31,560 Speaker 1: dollars of a run on deposits here and more than 184 00:09:31,640 --> 00:09:34,920 Speaker 1: seven hundred million dollars worth of a loss on securities 185 00:09:34,920 --> 00:09:38,520 Speaker 1: because they had to foresell essentially here. But interestingly, you 186 00:09:38,520 --> 00:09:40,480 Speaker 1: have analysts coming out and saying there are very few 187 00:09:40,840 --> 00:09:43,320 Speaker 1: banks I could sit there and take eight billion dollars 188 00:09:43,320 --> 00:09:46,480 Speaker 1: worth of withdrawals here and run on deposits. So there 189 00:09:46,559 --> 00:09:48,520 Speaker 1: is a two sided story here. But again something to 190 00:09:48,520 --> 00:09:51,480 Speaker 1: watch very very very closely, because seriously, eight billion dollars 191 00:09:51,480 --> 00:09:56,000 Speaker 1: of deposits usually run on deposits leads usually to more 192 00:09:56,120 --> 00:09:59,439 Speaker 1: runs on deposits. So have they stemmed the bleeding here? Genesis? 193 00:09:59,480 --> 00:10:01,880 Speaker 1: I actually think the reason that it's so interesting with 194 00:10:01,920 --> 00:10:06,240 Speaker 1: the job cut issue is that broader issue you were 195 00:10:06,240 --> 00:10:08,480 Speaker 1: looking at the stomach risk here, not just these single 196 00:10:08,520 --> 00:10:12,280 Speaker 1: one off issues. Is it's Genesis Global Trading that is 197 00:10:12,720 --> 00:10:15,720 Speaker 1: facing a lot of these cuts. Genesis Global Trading, remember, 198 00:10:15,760 --> 00:10:18,960 Speaker 1: did not halt its activity. It was Genesis Lending the 199 00:10:19,000 --> 00:10:22,400 Speaker 1: subsidiary that had halted withdrawals. So the fact now that 200 00:10:22,480 --> 00:10:27,160 Speaker 1: you're seeing issues here financially and looking to stem issues 201 00:10:27,200 --> 00:10:30,400 Speaker 1: here through the vein of job cuts for a larger 202 00:10:30,480 --> 00:10:33,880 Speaker 1: part of this digital currency group Empire is really the 203 00:10:33,920 --> 00:10:38,679 Speaker 1: heart of the issue. Snali, Hello from Las Vegas. Another 204 00:10:38,720 --> 00:10:41,760 Speaker 1: busy day for you, my friend. It's hard to keep 205 00:10:41,800 --> 00:10:45,559 Speaker 1: track of all the headlines from the crypto community. From 206 00:10:45,559 --> 00:10:47,280 Speaker 1: here in Las Vegas, folks are talking about it. I 207 00:10:47,280 --> 00:10:49,800 Speaker 1: think there's a big focusing on SPF right and and 208 00:10:50,120 --> 00:10:52,880 Speaker 1: the latest with what's happening with him. There's a probe 209 00:10:53,160 --> 00:10:56,400 Speaker 1: I believe into sp and SPF confidant. What's the latest there. 210 00:10:56,800 --> 00:10:58,720 Speaker 1: I would take a look at it this way because 211 00:10:58,720 --> 00:11:02,000 Speaker 1: remember we have nichads seeing now there's already been Caroline 212 00:11:02,000 --> 00:11:06,200 Speaker 1: Ellison and there's already been Gary Wang who have pled guilty. 213 00:11:06,280 --> 00:11:09,199 Speaker 1: When you look at the accounts brought forward, the criminal 214 00:11:09,240 --> 00:11:12,079 Speaker 1: accounts wet followed by US authorities. Now the question then 215 00:11:12,120 --> 00:11:15,480 Speaker 1: becomes about in Shad Singh, who is another deputy part 216 00:11:15,480 --> 00:11:18,040 Speaker 1: of the penthouse suite here that stayed in the Bahamas 217 00:11:18,040 --> 00:11:20,640 Speaker 1: penthouse when it came to where Sam Bankban Freed lived. 218 00:11:20,960 --> 00:11:24,000 Speaker 1: This man was also close to Sam bankman Fried's brother, 219 00:11:24,080 --> 00:11:26,920 Speaker 1: friends with him since high school and a director of 220 00:11:26,960 --> 00:11:29,640 Speaker 1: engineering over at f t X, so very part of 221 00:11:29,640 --> 00:11:32,840 Speaker 1: the inner circle here. So we have now that authorities 222 00:11:32,880 --> 00:11:36,120 Speaker 1: are looking more closely at him as well. We don't 223 00:11:36,160 --> 00:11:39,160 Speaker 1: know whether he'll be accused of any wrongdoing. We don't 224 00:11:39,200 --> 00:11:42,679 Speaker 1: know whether he's cooperating. Both of those facts will become very, 225 00:11:42,760 --> 00:11:45,840 Speaker 1: very important when we look at this overall investigation into 226 00:11:45,880 --> 00:11:49,360 Speaker 1: the f t X empire itself. Who knew what and 227 00:11:49,520 --> 00:11:53,440 Speaker 1: who did what when it came to customer money and 228 00:11:53,760 --> 00:11:57,280 Speaker 1: potentially taking it. Remember they were accused here of taking 229 00:11:57,280 --> 00:11:59,360 Speaker 1: the money and paying for personal assets. At the end 230 00:11:59,360 --> 00:12:01,640 Speaker 1: of the day, talking about customer money and people taking 231 00:12:01,679 --> 00:12:05,400 Speaker 1: it in accusations. Tis James getting busy to start off 232 00:12:05,679 --> 00:12:08,640 Speaker 1: the year. Of course, she's the Attorney General of New York. 233 00:12:08,720 --> 00:12:12,680 Speaker 1: Kind of looking at Celsius another key area that just 234 00:12:12,720 --> 00:12:15,880 Speaker 1: crumbled in two There have been so many strong words 235 00:12:15,960 --> 00:12:18,680 Speaker 1: crossing wires this week, and I want to read what 236 00:12:18,840 --> 00:12:21,880 Speaker 1: Leticia James had said in the statement about Alex Maschinski 237 00:12:21,960 --> 00:12:25,160 Speaker 1: here of Celsius, who had said Leticia James saying he 238 00:12:25,160 --> 00:12:28,880 Speaker 1: promised to lead investors to financial freedom but led them 239 00:12:28,920 --> 00:12:31,640 Speaker 1: down a path of financial ruin. Remember when we talked 240 00:12:31,640 --> 00:12:33,840 Speaker 1: about crypto the last couple of years, we've talked about 241 00:12:33,840 --> 00:12:37,280 Speaker 1: whether these big lenders what the responsibility to investors was 242 00:12:37,400 --> 00:12:39,200 Speaker 1: when they're not f d I c ensured like a 243 00:12:39,240 --> 00:12:42,120 Speaker 1: typical lenders in the United States. And what the Attorney 244 00:12:42,120 --> 00:12:44,760 Speaker 1: General is you're really telling you here, you're the New 245 00:12:44,840 --> 00:12:48,520 Speaker 1: York attorney is telling you is that they are responsible 246 00:12:48,880 --> 00:12:52,679 Speaker 1: for her customer money, regardless of that backs up or not. 247 00:12:53,000 --> 00:12:56,400 Speaker 1: And so that is a really important precedent, let alone 248 00:12:56,800 --> 00:12:59,800 Speaker 1: the issue that Alex Maschinski here and Selsius is facing. 249 00:13:00,160 --> 00:13:02,679 Speaker 1: So all of these stories, it is worth it broadening 250 00:13:02,679 --> 00:13:05,240 Speaker 1: out and saying what does this mean for other lenders 251 00:13:05,240 --> 00:13:07,880 Speaker 1: in the space At a time where we're already concerned 252 00:13:07,880 --> 00:13:10,719 Speaker 1: the industry has been so concerned about that big pullback 253 00:13:11,160 --> 00:13:14,120 Speaker 1: of lending in the industry, it will be interesting to 254 00:13:14,160 --> 00:13:16,839 Speaker 1: see how this plays out. Remember, Celsius is also going 255 00:13:16,880 --> 00:13:19,640 Speaker 1: through its own process here. And now what you're having 256 00:13:19,800 --> 00:13:24,120 Speaker 1: is Alex mccinski really being accused here of running a 257 00:13:24,200 --> 00:13:30,520 Speaker 1: scheme that ran for years before freezing withdrawals. All right, 258 00:13:30,520 --> 00:13:35,080 Speaker 1: Bloomberg's Crypto Wall Street, All Things Finance correspondent shin Ali Bastak, 259 00:13:35,200 --> 00:13:47,400 Speaker 1: thank you very much. There's still some focus on consumer 260 00:13:47,400 --> 00:13:51,440 Speaker 1: gadgets and electronics as sees this year. Samsung, for example, 261 00:13:51,600 --> 00:13:55,600 Speaker 1: is thinking about cheaper multi functional devices. The electronics Giant 262 00:13:55,679 --> 00:13:57,800 Speaker 1: is showing off the new two hundred dollar version of 263 00:13:57,880 --> 00:14:01,120 Speaker 1: It's a series budget smartphone, A four teen five G 264 00:14:01,520 --> 00:14:05,240 Speaker 1: as a new upgraded thirteen megapixel front facing camera and 265 00:14:05,520 --> 00:14:09,120 Speaker 1: at six point six in screen with an economic slowdown. Globally, 266 00:14:09,120 --> 00:14:12,280 Speaker 1: Samsung's hoping that entry level phone appeals to more budget 267 00:14:12,280 --> 00:14:16,080 Speaker 1: conscious consumers. Mid two smartphones were hit in two and 268 00:14:16,120 --> 00:14:20,200 Speaker 1: more expensive handsets could be hit in the Korean tech 269 00:14:20,240 --> 00:14:24,000 Speaker 1: giants also thinking about what you're doing at home, Samsung's 270 00:14:24,000 --> 00:14:27,000 Speaker 1: bedding but doubling up a new smart home control device 271 00:14:27,160 --> 00:14:30,119 Speaker 1: as a wireless charging pad will help it beat competition 272 00:14:30,200 --> 00:14:34,560 Speaker 1: from the likes of Amazon. The smarting stage costs eighty 273 00:14:34,560 --> 00:14:37,000 Speaker 1: dollars and can connect to a user's phone or tablet. 274 00:14:37,280 --> 00:14:39,400 Speaker 1: The hub can also be used to operate smart home 275 00:14:39,440 --> 00:14:44,280 Speaker 1: accessories wirelessly think fridges, firmostats, locks and lights. And to 276 00:14:44,360 --> 00:14:46,920 Speaker 1: set it apart, Samsung's added that whiless charging to the 277 00:14:47,000 --> 00:14:49,720 Speaker 1: hub to give juice to your phones and your ear buds. 278 00:14:53,360 --> 00:14:56,800 Speaker 1: So that's what it's like. Carrow out on the exhibition floor, right, 279 00:14:56,840 --> 00:14:59,320 Speaker 1: we're there in Samsung's blue if looking at their latest products, 280 00:14:59,320 --> 00:15:01,800 Speaker 1: we're kind of poking fun at the idea that CS 281 00:15:01,880 --> 00:15:04,000 Speaker 1: has been all about cars for so long you forget 282 00:15:04,200 --> 00:15:06,480 Speaker 1: there are some consumer electronics. I thought it was so 283 00:15:06,560 --> 00:15:09,840 Speaker 1: interesting that Samsung did focus on the low end, right 284 00:15:09,880 --> 00:15:13,920 Speaker 1: two hundred dollars, budget conscious consumer value for money, not 285 00:15:14,080 --> 00:15:17,000 Speaker 1: the dazzling one thousand dollar handsets that perhaps others have 286 00:15:17,080 --> 00:15:20,560 Speaker 1: focused on in recent releases. Yeah, and it is interesting also, 287 00:15:20,600 --> 00:15:23,440 Speaker 1: of course you tap such more broader global market by 288 00:15:23,880 --> 00:15:26,560 Speaker 1: having entry points at that such price point. Tell me, though, 289 00:15:26,880 --> 00:15:29,360 Speaker 1: I feel like the buzzword is also AI rite and 290 00:15:29,360 --> 00:15:31,920 Speaker 1: I was reading some great stories and courage from you 291 00:15:32,080 --> 00:15:34,360 Speaker 1: and from others talking about I mean, apparently I can 292 00:15:34,400 --> 00:15:36,960 Speaker 1: get an AI bird feeder, I can get an AI 293 00:15:37,000 --> 00:15:40,720 Speaker 1: focused baby carriage, fatigue fighting wristwatch. What are some of 294 00:15:40,720 --> 00:15:43,160 Speaker 1: the more extraordinary things that you're seeing at the moment? 295 00:15:43,400 --> 00:15:47,440 Speaker 1: On the floor last night was really weird. Arnold Schwartzeneger 296 00:15:47,480 --> 00:15:49,800 Speaker 1: was on stage, David Hasselhoff was in a video. But 297 00:15:50,200 --> 00:15:54,280 Speaker 1: the reason being is BMW tapped their sci fi inner side. 298 00:15:54,640 --> 00:15:56,560 Speaker 1: We'll get to that later in the show. The other 299 00:15:56,600 --> 00:15:59,920 Speaker 1: big name is Panasonic that really focused on automotive tech 300 00:16:00,280 --> 00:16:03,400 Speaker 1: as well, the Japanese electronic giant no exceptions kind of 301 00:16:03,440 --> 00:16:06,480 Speaker 1: the rules that are going new ELECTA capability was their 302 00:16:06,520 --> 00:16:10,240 Speaker 1: deal for in car entertainment. Remember, Panasonic's main business here 303 00:16:10,280 --> 00:16:13,240 Speaker 1: in North America is battery cell business. It's biggest client, 304 00:16:13,280 --> 00:16:15,280 Speaker 1: Tesla is top of mind. And I spoke to the 305 00:16:15,280 --> 00:16:19,400 Speaker 1: North America CEO Megan one one one Lee. This is 306 00:16:19,400 --> 00:16:24,080 Speaker 1: what she had to say. We're all about customers. Panasonic 307 00:16:24,360 --> 00:16:27,520 Speaker 1: is in our business in US for sixty years as 308 00:16:27,520 --> 00:16:30,600 Speaker 1: a company, hundred years, we really focused on our technology 309 00:16:30,680 --> 00:16:34,280 Speaker 1: and solution for customers. We love our partners, but we 310 00:16:34,360 --> 00:16:37,920 Speaker 1: really want to deliver a product and technology and service 311 00:16:38,000 --> 00:16:41,080 Speaker 1: that bids customer needs. That's well and focus on when 312 00:16:41,080 --> 00:16:43,640 Speaker 1: you make an announcement like this at CS it's supposed 313 00:16:43,680 --> 00:16:46,160 Speaker 1: to be a consumer electronics show, right, it's about forward looking. 314 00:16:46,600 --> 00:16:50,280 Speaker 1: But this is a product like that make you more competitive? 315 00:16:50,320 --> 00:16:54,240 Speaker 1: Does it give you a pipeline of business? UM? Yes 316 00:16:54,280 --> 00:16:57,600 Speaker 1: it does. And UM as a hundred years old company 317 00:16:57,840 --> 00:16:59,680 Speaker 1: and we grew up with C S two we have 318 00:16:59,760 --> 00:17:02,440 Speaker 1: more and fift years or partnership with C E S 319 00:17:02,480 --> 00:17:06,159 Speaker 1: and C T A. And our message this year is 320 00:17:06,200 --> 00:17:14,440 Speaker 1: sustainability and thank you. Yes, why he's our climate ambassador 321 00:17:14,840 --> 00:17:18,440 Speaker 1: and uh what he brings and what he's passionate about 322 00:17:18,480 --> 00:17:22,399 Speaker 1: and what we want to do is nice alignment for 323 00:17:22,480 --> 00:17:26,000 Speaker 1: our message. So what we're demonstrating on the floor and 324 00:17:26,040 --> 00:17:30,359 Speaker 1: our message is we believe in our core belief is 325 00:17:30,440 --> 00:17:34,960 Speaker 1: contribution to society with technology and I am and we 326 00:17:35,000 --> 00:17:38,440 Speaker 1: are really excited that this year is all about sustainability 327 00:17:38,480 --> 00:17:41,640 Speaker 1: for the future but also for the current as well. 328 00:17:41,760 --> 00:17:45,119 Speaker 1: Our biggest business in North America right now is eb Battery. 329 00:17:45,560 --> 00:17:49,440 Speaker 1: We also made another announcement two months ago to invest 330 00:17:49,840 --> 00:17:54,280 Speaker 1: additional four billion dollars for Kansas Kansas um UH for 331 00:17:54,400 --> 00:17:58,639 Speaker 1: the second battery factory. And with that we have four 332 00:17:59,400 --> 00:18:04,000 Speaker 1: employees as is just focused in manufacturing eby battery. That's 333 00:18:04,000 --> 00:18:06,760 Speaker 1: going to have another four thousand employees. And we're really 334 00:18:06,800 --> 00:18:10,160 Speaker 1: bullish about what we're doing in eby battery, sustainability and 335 00:18:10,480 --> 00:18:13,639 Speaker 1: electrification of transportation. You took us there, Let's stick with 336 00:18:14,119 --> 00:18:16,639 Speaker 1: the batteries. We have to talk about Tesla. You know, 337 00:18:16,960 --> 00:18:20,840 Speaker 1: the story around Tesla right now is about concern for demand. 338 00:18:21,880 --> 00:18:25,240 Speaker 1: My question to you is, if there's a drop off 339 00:18:25,240 --> 00:18:28,719 Speaker 1: in demand for customers like Tesla, does that impact demand 340 00:18:28,760 --> 00:18:32,560 Speaker 1: for Panasonic's battery cells or does a customer like Tesla 341 00:18:32,920 --> 00:18:35,440 Speaker 1: have to commit to some volume anyway, even if their 342 00:18:35,480 --> 00:18:39,840 Speaker 1: demand for the end products drops. We're not that concerned 343 00:18:39,840 --> 00:18:43,640 Speaker 1: about that. Right now, We're trying to really provide the quality, 344 00:18:43,720 --> 00:18:46,919 Speaker 1: quantity and quality that Tesla is looking for. We have 345 00:18:47,040 --> 00:18:50,200 Speaker 1: about ten years of experience working with Tesla, which has 346 00:18:50,240 --> 00:18:55,040 Speaker 1: been wonderful. Um as a Japanese uh hundred years old company, 347 00:18:55,119 --> 00:18:58,359 Speaker 1: working with Tesla has been a wonderful learning experience. We 348 00:18:58,480 --> 00:19:02,640 Speaker 1: also announced the partnership with Lucid Yes and we are 349 00:19:03,240 --> 00:19:08,159 Speaker 1: diversifying our contribution in evy battery for this market and 350 00:19:08,840 --> 00:19:14,960 Speaker 1: we're not worried. We're very excited. Panasonic North America CEO there. Meanwhile, 351 00:19:15,040 --> 00:19:17,760 Speaker 1: we've got so much more coming from CES Instacot CMO 352 00:19:17,880 --> 00:19:21,720 Speaker 1: Laura Jones, and the company's latest connected store technologies, including 353 00:19:21,800 --> 00:19:24,480 Speaker 1: caper cart, that big Purchase it made, and scan and 354 00:19:24,520 --> 00:19:33,160 Speaker 1: pay feature. As a Bloomberg a little more from CS 355 00:19:33,240 --> 00:19:35,760 Speaker 1: now because I got to catch up with the Instacot 356 00:19:35,840 --> 00:19:39,280 Speaker 1: CMO Laura Jones, asking about how the company is thinking 357 00:19:39,280 --> 00:19:41,919 Speaker 1: more B two B than B to see at the 358 00:19:41,920 --> 00:19:45,280 Speaker 1: moment about becoming a technology solution. It's big companies, take 359 00:19:45,280 --> 00:19:50,520 Speaker 1: a listen. We're increasingly focused on becoming a retail enablement platform. 360 00:19:50,600 --> 00:19:53,879 Speaker 1: And so in addition to our marketplace which you described 361 00:19:54,240 --> 00:19:59,640 Speaker 1: that personalized shopping, we're also offering technology to enable our 362 00:19:59,680 --> 00:20:03,919 Speaker 1: growth three partners to bring technology into their store. So 363 00:20:04,000 --> 00:20:08,200 Speaker 1: at ce S Disher, we're showcasing our caper carts, which 364 00:20:08,200 --> 00:20:12,800 Speaker 1: are AI computer vision enabled shopping carts that let consumers 365 00:20:12,920 --> 00:20:16,440 Speaker 1: check out as they shop. We're also showing electronic shelf 366 00:20:16,480 --> 00:20:20,640 Speaker 1: tags carrot tags that help consumers and insta cart shoppers 367 00:20:20,640 --> 00:20:23,080 Speaker 1: more easily find what they're looking for. And we're also 368 00:20:23,119 --> 00:20:26,439 Speaker 1: showcasing some integrations between our app and that hardware. So, 369 00:20:26,480 --> 00:20:30,159 Speaker 1: for example, lists you're shopping list that you'll have on 370 00:20:30,320 --> 00:20:33,439 Speaker 1: insta cart, you can also access if you're shopping in store. 371 00:20:33,520 --> 00:20:37,439 Speaker 1: So that'll be a great integration that really recognizes the 372 00:20:37,440 --> 00:20:42,119 Speaker 1: fact that customers increasingly are shopping both online and in store. Also, 373 00:20:42,200 --> 00:20:44,240 Speaker 1: another way in which instacot has been trying to pull 374 00:20:44,280 --> 00:20:47,600 Speaker 1: the leavers of growth is by advertising in it all 375 00:20:47,600 --> 00:20:50,400 Speaker 1: of itself on the platform. You, as CMO, I'm sure 376 00:20:50,640 --> 00:20:53,960 Speaker 1: deeply integrated in this. Tell me about how you're looking 377 00:20:54,000 --> 00:20:57,120 Speaker 1: to make that process easy, how you're looking to make 378 00:20:57,160 --> 00:21:01,920 Speaker 1: that evolve for the uses that you have. Yes, we 379 00:21:02,440 --> 00:21:06,960 Speaker 1: love that our platform can help our customers discover new 380 00:21:07,000 --> 00:21:09,760 Speaker 1: brands that they'll fall in love with and that will 381 00:21:09,800 --> 00:21:12,399 Speaker 1: become part of their weekly shopping routine. And so we 382 00:21:12,480 --> 00:21:17,320 Speaker 1: have a really robust suite of advertising products and everything 383 00:21:17,359 --> 00:21:20,360 Speaker 1: from kind of our classic sponsored products all the way 384 00:21:20,400 --> 00:21:24,400 Speaker 1: through to new launches like shoppable Video that let's brands 385 00:21:24,400 --> 00:21:27,640 Speaker 1: really tell a more fulsome story um and and act 386 00:21:27,680 --> 00:21:30,359 Speaker 1: more like a mid funnel solution in our app to 387 00:21:30,480 --> 00:21:33,399 Speaker 1: inspire users who might not have considered that product to 388 00:21:33,400 --> 00:21:35,480 Speaker 1: add it to their cart. And what's great is because 389 00:21:35,520 --> 00:21:38,920 Speaker 1: we're a closed loop system, you can really track and 390 00:21:39,119 --> 00:21:41,600 Speaker 1: the afflicacy of these ads in a way that's quite unique. 391 00:21:42,400 --> 00:21:52,360 Speaker 1: Day is still the key currency. Welcome back to bow 392 00:21:52,400 --> 00:21:54,600 Speaker 1: Bog Technology. I'm count on hot and new and love low. 393 00:21:54,640 --> 00:21:56,760 Speaker 1: He's in Las Vegas, C Yes, and and I mean, 394 00:21:57,000 --> 00:21:59,960 Speaker 1: what a hundred thousand people there, but it must be 395 00:22:00,200 --> 00:22:04,600 Speaker 1: bumping into a fair few pretty senior executives, right, Yeah, 396 00:22:04,680 --> 00:22:07,920 Speaker 1: it's interesting. We kind of jokes about how automotive technology dominates. 397 00:22:07,960 --> 00:22:10,960 Speaker 1: But you do have Samsung here with that big splashy displays. 398 00:22:11,200 --> 00:22:13,760 Speaker 1: There's a lot of emphasis as well on cybersecurity, which 399 00:22:13,760 --> 00:22:17,560 Speaker 1: I thought was really interesting. I caught up with Cybersecurity 400 00:22:17,640 --> 00:22:22,040 Speaker 1: and Infrastructure Security Agency Chief and Director Jen Easterly, who's 401 00:22:22,080 --> 00:22:24,160 Speaker 1: basically trying to hammer home this message. If you're working 402 00:22:24,240 --> 00:22:27,040 Speaker 1: on new tech right from the outside, you need to 403 00:22:27,040 --> 00:22:29,960 Speaker 1: be focused on cybersecurity. This is what she had to say. 404 00:22:30,760 --> 00:22:33,600 Speaker 1: This is fundamentally about keeping them safe. We live in 405 00:22:33,600 --> 00:22:37,560 Speaker 1: a world that's highly connected, highly digitized. The infrastructure we 406 00:22:37,640 --> 00:22:41,560 Speaker 1: depend upon is all underpinned by technology, and so it's 407 00:22:41,560 --> 00:22:44,719 Speaker 1: a matter of actually doing right by your clients. But 408 00:22:45,040 --> 00:22:48,560 Speaker 1: I think boards and CEOs and business leaders actually need 409 00:22:48,680 --> 00:22:52,040 Speaker 1: to look at corporate cyber responsibility in the way that 410 00:22:52,080 --> 00:22:56,359 Speaker 1: they look at corporate social responsibility. Cybersecurity cyber safety is 411 00:22:56,359 --> 00:22:59,840 Speaker 1: a social good. It's about society or resilience, and particularly 412 00:22:59,840 --> 00:23:03,639 Speaker 1: with everything connected these days, you can't just worry about 413 00:23:03,680 --> 00:23:07,400 Speaker 1: your own company. We have to stop putting self preservation 414 00:23:07,680 --> 00:23:10,640 Speaker 1: over collaboration. Think about the software makers and to take 415 00:23:10,680 --> 00:23:13,359 Speaker 1: it up. You know you've been up on stage, your 416 00:23:13,400 --> 00:23:15,320 Speaker 1: audience is sitting at them, and beyond that, how do 417 00:23:15,359 --> 00:23:18,960 Speaker 1: you encourage them to do this in parallel with writing 418 00:23:19,000 --> 00:23:24,200 Speaker 1: code for developing new programs, introducing the cybersecurity aspect well. 419 00:23:24,560 --> 00:23:26,119 Speaker 1: So there are many ways this are done. If you 420 00:23:26,200 --> 00:23:29,240 Speaker 1: go back to the nineteen sixties, actually everybody blame car 421 00:23:29,320 --> 00:23:32,240 Speaker 1: crashes on bad drivers, But then there was a whole 422 00:23:32,280 --> 00:23:35,800 Speaker 1: movement about actually cars are unsafe at any speed because 423 00:23:35,800 --> 00:23:38,000 Speaker 1: they don't have seatbelts, they don't have air bags, they 424 00:23:38,000 --> 00:23:40,280 Speaker 1: don't have anti lock breaks, they don't have comple zones. 425 00:23:41,000 --> 00:23:43,639 Speaker 1: So ultimately down the road, it may be a matter 426 00:23:43,760 --> 00:23:47,040 Speaker 1: of regulation, but right now, what we need to do 427 00:23:47,200 --> 00:23:51,159 Speaker 1: is to inform our consumers about their basic safety, and 428 00:23:51,200 --> 00:23:54,480 Speaker 1: they need to be demanding radical transparency from these software 429 00:23:54,480 --> 00:23:58,239 Speaker 1: makers about whether they're building software that is secured by 430 00:23:58,320 --> 00:24:03,000 Speaker 1: design so lesson less flaws and defects, and secure by 431 00:24:03,040 --> 00:24:07,480 Speaker 1: default with security features like multi factor authentication baked into 432 00:24:07,480 --> 00:24:10,399 Speaker 1: the product so I don't have to tell my ninety 433 00:24:10,480 --> 00:24:12,919 Speaker 1: year old mom or my kid, oh, you've got to 434 00:24:13,040 --> 00:24:15,320 Speaker 1: enable m f A. They have no idea where multi 435 00:24:15,400 --> 00:24:19,480 Speaker 1: factor authentiiation is. You know, this is about consumer safety, 436 00:24:19,560 --> 00:24:23,480 Speaker 1: and again I love the innovation, but the incentives are skewed. 437 00:24:23,960 --> 00:24:26,640 Speaker 1: We need to balance the incentives and at the same 438 00:24:26,680 --> 00:24:30,840 Speaker 1: time leaders need to look at this cyber risk as 439 00:24:30,880 --> 00:24:34,560 Speaker 1: a core business risk in their own responsibility. What's motivating 440 00:24:34,600 --> 00:24:37,680 Speaker 1: you to do this now is your agency seeing a 441 00:24:37,840 --> 00:24:41,359 Speaker 1: rampupp in threats are the more things crossing your desk, 442 00:24:41,760 --> 00:24:43,720 Speaker 1: It's made you think, right, I actually have to start 443 00:24:43,760 --> 00:24:45,840 Speaker 1: doing more to get this message. Yeah. I've been doing 444 00:24:45,920 --> 00:24:49,600 Speaker 1: this for a really long time, and every year they 445 00:24:49,640 --> 00:24:51,159 Speaker 1: asked the same thing. Is it going to be the 446 00:24:51,200 --> 00:24:53,600 Speaker 1: same thing? Are we going to just see more threats 447 00:24:53,680 --> 00:24:57,080 Speaker 1: and more attacks and more ransomware? And frankly, I don't 448 00:24:57,119 --> 00:25:00,000 Speaker 1: think that that is sustainable, given that everything is increas 449 00:25:00,000 --> 00:25:04,520 Speaker 1: recently digitized and connected. Six trillion dollar CYMRI cron damages 450 00:25:04,840 --> 00:25:07,120 Speaker 1: last year are projected to be eight trillion this year 451 00:25:07,200 --> 00:25:11,240 Speaker 1: protected to be ten point five trillion. That is the 452 00:25:11,359 --> 00:25:15,600 Speaker 1: GDP of India, Germany and the United Kingdom combined. We 453 00:25:15,720 --> 00:25:19,520 Speaker 1: cannot continue to allow this to happen. It's not sustainable, 454 00:25:19,920 --> 00:25:22,600 Speaker 1: and so we're really trying to motivate a movement where 455 00:25:22,960 --> 00:25:26,439 Speaker 1: consumers are asking hard questions so that technology are thinking 456 00:25:26,440 --> 00:25:29,600 Speaker 1: about safety as much as they're thinking about innovation, that 457 00:25:29,800 --> 00:25:33,600 Speaker 1: core business business leaders and CEOs and boards are embracing 458 00:25:33,920 --> 00:25:37,880 Speaker 1: corporate cyber responsibility as a matter of good governance, and frankly, 459 00:25:37,920 --> 00:25:41,000 Speaker 1: trying to create a paradigm shift of how government and 460 00:25:41,200 --> 00:25:44,040 Speaker 1: industry relate to each other. Well, I think about the 461 00:25:44,040 --> 00:25:46,800 Speaker 1: world we're in right now, the war in Ukraine being 462 00:25:46,840 --> 00:25:52,040 Speaker 1: an example, he's the war in Ukraine driving an increase 463 00:25:52,119 --> 00:25:55,480 Speaker 1: in ransomware attacks here in the United States, for example. No, 464 00:25:55,640 --> 00:25:58,280 Speaker 1: I don't think it's driving and increase in ransomware attacks, 465 00:25:58,280 --> 00:26:01,040 Speaker 1: but I do think it is a reminder that there 466 00:26:01,080 --> 00:26:05,920 Speaker 1: are various serious threats out there, whether there's Russia, China, Iran, 467 00:26:06,040 --> 00:26:09,560 Speaker 1: North Korea, or cyber criminals that are given safe haven 468 00:26:09,600 --> 00:26:12,879 Speaker 1: and sponsored by some of these nations that can do 469 00:26:13,080 --> 00:26:16,639 Speaker 1: significant harm to our businesses. But also you know what 470 00:26:16,680 --> 00:26:19,160 Speaker 1: we've seen from hospitals, what we've seen from k through 471 00:26:19,200 --> 00:26:21,879 Speaker 1: twelve school districts. One of the things that I worry 472 00:26:21,920 --> 00:26:26,159 Speaker 1: most about are what we call target rich cyber poor entities, 473 00:26:26,560 --> 00:26:31,120 Speaker 1: so that schools, that's water facilities, that's hospitals that don't 474 00:26:31,160 --> 00:26:34,280 Speaker 1: have the resources to be able to raise the baseline 475 00:26:34,280 --> 00:26:37,040 Speaker 1: in cyber So we're going to spend this year really 476 00:26:37,080 --> 00:26:39,920 Speaker 1: working with them to ensure they have the resource, the capabilities, 477 00:26:39,920 --> 00:26:43,359 Speaker 1: the expertise, the technical guidance to be able to drive 478 00:26:43,480 --> 00:26:46,840 Speaker 1: down risk. But in a world where technology is created 479 00:26:46,880 --> 00:26:50,080 Speaker 1: secure by design and secure by default, we won't really 480 00:26:50,119 --> 00:26:53,040 Speaker 1: have to worry so much about small businesses that are 481 00:26:53,040 --> 00:26:57,320 Speaker 1: going to get taken out because they're not putting cybersecurity. 482 00:26:59,359 --> 00:27:05,840 Speaker 1: It's a total agency, really fascinating from genuously there, and 483 00:27:05,880 --> 00:27:07,399 Speaker 1: I think it's so right to shine a light on 484 00:27:07,440 --> 00:27:10,119 Speaker 1: those perhaps that don't always be able to invest in 485 00:27:10,200 --> 00:27:13,199 Speaker 1: cybersecurity and many warriors, we enter a downturn head that 486 00:27:13,240 --> 00:27:15,639 Speaker 1: maybe people would pull back on that sort of spending, 487 00:27:15,680 --> 00:27:17,879 Speaker 1: and it's probably the most area that people need to 488 00:27:17,880 --> 00:27:20,480 Speaker 1: invest in particular for your financial services company. But I'm 489 00:27:20,480 --> 00:27:23,520 Speaker 1: interested as to who who is she speaking to, Who 490 00:27:23,560 --> 00:27:25,880 Speaker 1: is her audience at cs when she's coming to those 491 00:27:25,880 --> 00:27:28,600 Speaker 1: sorts of events. Yeah, I mean when I asked her 492 00:27:28,600 --> 00:27:31,520 Speaker 1: about the motivations, right, she talks about protecting the consumer. 493 00:27:31,560 --> 00:27:34,640 Speaker 1: You know, that is an incentive for the private sector 494 00:27:34,720 --> 00:27:37,360 Speaker 1: to act to make sure cybersecurity is top of mind 495 00:27:37,359 --> 00:27:40,000 Speaker 1: when they're they're working on their latest technology. But actually, 496 00:27:40,040 --> 00:27:42,199 Speaker 1: what I heard was that that was a message to 497 00:27:42,200 --> 00:27:44,800 Speaker 1: the private sector. Right, She's saying, hey, and you know, 498 00:27:44,880 --> 00:27:47,160 Speaker 1: Gen's a rock star in this world, not just kind 499 00:27:47,160 --> 00:27:49,159 Speaker 1: of a government official, but a rock star in the 500 00:27:49,200 --> 00:27:52,040 Speaker 1: world of cybersecurity. And what I heard was private sector 501 00:27:52,240 --> 00:27:54,280 Speaker 1: he's get on board with this and get your act together. 502 00:27:54,320 --> 00:27:57,600 Speaker 1: And that's fortunate Caroline because we can continue this conversation 503 00:27:57,960 --> 00:28:01,320 Speaker 1: with CrowdStrike CEO George. And what's more is, actually, you 504 00:28:01,320 --> 00:28:04,920 Speaker 1: know Jen very well. Um, do you agree with that 505 00:28:04,920 --> 00:28:07,840 Speaker 1: that the Jen's message was to you frankly that you 506 00:28:08,000 --> 00:28:11,760 Speaker 1: the private sector, but also those outside of cybersecurity needs 507 00:28:11,760 --> 00:28:13,480 Speaker 1: to be doing a lot more. Yeah, it might have 508 00:28:13,520 --> 00:28:15,239 Speaker 1: been more to Microsoft, but you have to ask her 509 00:28:15,280 --> 00:28:17,680 Speaker 1: in terms of building software by design. But I think 510 00:28:17,760 --> 00:28:21,479 Speaker 1: as a as an industry, um, you know, we have 511 00:28:21,560 --> 00:28:23,760 Speaker 1: to have security built by design and we're at CS 512 00:28:23,800 --> 00:28:25,119 Speaker 1: and I think a big part of it is there 513 00:28:25,160 --> 00:28:29,360 Speaker 1: are many different consumer devices that come to the consumer 514 00:28:29,520 --> 00:28:32,080 Speaker 1: not secure out of the box and not looked after 515 00:28:32,200 --> 00:28:35,200 Speaker 1: for their lifetime, and that becomes problematic and creates risk 516 00:28:35,240 --> 00:28:39,560 Speaker 1: in the environment. Microsoft, what did you mean by that? Well, 517 00:28:39,640 --> 00:28:42,440 Speaker 1: when you look at the technologies that are in play 518 00:28:42,480 --> 00:28:44,560 Speaker 1: and a lot of the exploits that happened there on 519 00:28:44,640 --> 00:28:47,880 Speaker 1: Microsoft technologies, I mean it patched tuesday. Is you know 520 00:28:47,920 --> 00:28:50,960 Speaker 1: how many vulnerabilities can we patch? So many of the 521 00:28:51,000 --> 00:28:55,440 Speaker 1: big breaches that we've investigated report on have exploited Microsoft technology. 522 00:28:55,520 --> 00:28:57,400 Speaker 1: So I think what she was saying and I was 523 00:28:57,440 --> 00:29:00,240 Speaker 1: on the panel with her today, right, which was it's like, 524 00:29:00,280 --> 00:29:03,440 Speaker 1: you can't blame the victim in other crimes, we don't 525 00:29:03,480 --> 00:29:06,560 Speaker 1: blame the victim. Right in cybersecurity, it's like, well, they 526 00:29:06,560 --> 00:29:08,520 Speaker 1: didn't pass it, in't do this, Well, how did that 527 00:29:08,600 --> 00:29:11,680 Speaker 1: vulnerability get there in the first place? And creating secure 528 00:29:11,720 --> 00:29:14,480 Speaker 1: software by design is really important for the consumer and 529 00:29:14,520 --> 00:29:18,320 Speaker 1: the enterprise. George, let's talk a little bit about safety 530 00:29:18,320 --> 00:29:21,640 Speaker 1: and indeed whether threats are indeed coming from three? Are 531 00:29:21,680 --> 00:29:23,800 Speaker 1: we seeing anything novel and anything new? And he knew 532 00:29:23,960 --> 00:29:29,200 Speaker 1: kind of attack as any new players within this game. Well, 533 00:29:29,200 --> 00:29:32,600 Speaker 1: when we think about three and a challenging macro environment, 534 00:29:32,640 --> 00:29:35,200 Speaker 1: where we have to look at is during a recession, 535 00:29:35,240 --> 00:29:37,920 Speaker 1: and I've been through many of them. I've been doing 536 00:29:37,920 --> 00:29:42,120 Speaker 1: security for a long time. Cybers adversaries tend to get 537 00:29:42,160 --> 00:29:45,520 Speaker 1: more active cyber crime goes up. Why because we've seen it. 538 00:29:45,560 --> 00:29:48,480 Speaker 1: You've reported on the layoffs in tech and in other places. 539 00:29:48,840 --> 00:29:51,880 Speaker 1: Whenever people are coming and going, there's always an opportunity 540 00:29:51,920 --> 00:29:55,280 Speaker 1: to abuse that identity. When people aren't minding quote the 541 00:29:55,400 --> 00:29:59,760 Speaker 1: store and looking after systems, there's opportunity for these crime actors. 542 00:29:59,760 --> 00:30:03,400 Speaker 1: So we think it's even more important as we get 543 00:30:03,400 --> 00:30:06,520 Speaker 1: into a challenging environment that cybersecurity is front center for 544 00:30:06,720 --> 00:30:09,240 Speaker 1: large and small companies and of course the consumer. Oh, 545 00:30:09,360 --> 00:30:11,080 Speaker 1: I'll see the same question I asked Jen, which is 546 00:30:11,120 --> 00:30:13,000 Speaker 1: where are the threats coming from? You know, I asked 547 00:30:13,040 --> 00:30:15,400 Speaker 1: about the war in Ukraine and whether there was a 548 00:30:15,440 --> 00:30:18,320 Speaker 1: direct correlation with the war in Ukraine and a rampup 549 00:30:18,360 --> 00:30:21,320 Speaker 1: and activity in ransomware as an example. She said, no, 550 00:30:21,800 --> 00:30:25,040 Speaker 1: that's not the case. But we keep hearing, well, the 551 00:30:25,080 --> 00:30:27,960 Speaker 1: threats there, that's what's motivating her to speak. So where 552 00:30:27,960 --> 00:30:30,120 Speaker 1: are they coming from? The threats? Well, we break the 553 00:30:30,160 --> 00:30:33,160 Speaker 1: threats threat actors into three different groups. We have nation 554 00:30:33,200 --> 00:30:36,640 Speaker 1: state actors, we have e crime, and we have activism. Right, 555 00:30:36,720 --> 00:30:38,240 Speaker 1: just a simple way to think about it. So the 556 00:30:38,320 --> 00:30:42,040 Speaker 1: nation state actors Russia, China, North Korea, etcetera. I ranum 557 00:30:42,160 --> 00:30:44,800 Speaker 1: are always going to be active, whether it's good times, 558 00:30:44,800 --> 00:30:46,640 Speaker 1: bad times, war or not war. They're always going to 559 00:30:46,720 --> 00:30:48,560 Speaker 1: be out there. And when we think about Russia, I 560 00:30:48,560 --> 00:30:50,480 Speaker 1: would think I would say many thought there would be 561 00:30:50,520 --> 00:30:53,560 Speaker 1: more activity around the uk Ukraine conflict. But it's not 562 00:30:53,600 --> 00:30:55,640 Speaker 1: like Russia forgot what they were doing. They're still very 563 00:30:55,640 --> 00:30:59,120 Speaker 1: active in this environment and collecting information. Maybe not as 564 00:30:59,160 --> 00:31:01,600 Speaker 1: destructive as we thought. Then you turn to e crime. 565 00:31:01,680 --> 00:31:05,320 Speaker 1: E crime is a huge business. Jen talked about it. Uh, 566 00:31:05,360 --> 00:31:07,920 Speaker 1: it's really ransomware as a service. E crime as a service. 567 00:31:07,960 --> 00:31:11,120 Speaker 1: You really don't need to understand anything almost about technology. 568 00:31:11,520 --> 00:31:13,920 Speaker 1: You can buy access from an access broker. You can 569 00:31:13,920 --> 00:31:16,280 Speaker 1: buy a ransomware from a ransomware as a service, by 570 00:31:16,280 --> 00:31:17,800 Speaker 1: the way, as a revenue share on that as well. 571 00:31:17,920 --> 00:31:20,160 Speaker 1: They've got their own business model, so they actually collect 572 00:31:20,160 --> 00:31:22,000 Speaker 1: the piece of that revenue and then at the end 573 00:31:22,040 --> 00:31:24,400 Speaker 1: of the day, you just assemble it together, you execute 574 00:31:24,400 --> 00:31:25,960 Speaker 1: your campaign, and you can make a lot of money 575 00:31:26,000 --> 00:31:29,719 Speaker 1: without a lot of risk. George, aside from attackers ow 576 00:31:29,840 --> 00:31:32,760 Speaker 1: revenue streams, talk to us about yours because as people 577 00:31:32,800 --> 00:31:35,480 Speaker 1: do doll back spending R and D and maybe their 578 00:31:35,520 --> 00:31:39,120 Speaker 1: own cybersecurity during a period of downturn, we have seen, 579 00:31:39,120 --> 00:31:42,000 Speaker 1: for example, your own revenue of crowd strike hit by that. 580 00:31:42,360 --> 00:31:45,080 Speaker 1: Are you feeling that the worst is over? You worried 581 00:31:45,120 --> 00:31:49,560 Speaker 1: as you go into twenty three, Well, we think about 582 00:31:49,600 --> 00:31:52,920 Speaker 1: when we go into three. Obviously many companies have seen 583 00:31:52,960 --> 00:31:56,240 Speaker 1: head winds, uh, you know, lengthening sales cycle, those sort 584 00:31:56,280 --> 00:32:00,640 Speaker 1: of things, um as as other companies enterprise SMBs evaluate 585 00:32:00,640 --> 00:32:03,320 Speaker 1: their own their own budgets. But at the end of 586 00:32:03,360 --> 00:32:05,080 Speaker 1: the day, when I think about security, it is a 587 00:32:05,160 --> 00:32:08,680 Speaker 1: very resilient industry. And for me, the hierarchy of needs 588 00:32:08,680 --> 00:32:11,720 Speaker 1: and corporate needs, it's like shelter. You have to have security, 589 00:32:12,080 --> 00:32:14,880 Speaker 1: whether by regulation or by business resiliency. And one of 590 00:32:14,880 --> 00:32:17,160 Speaker 1: the things that Jen and I spoke about was really 591 00:32:17,200 --> 00:32:19,640 Speaker 1: that it's a board issue. The board is looking at 592 00:32:20,160 --> 00:32:23,920 Speaker 1: business resiliency, not just the annoyance of someone's a single 593 00:32:23,920 --> 00:32:27,160 Speaker 1: computer being impacted. We've seen companies literally get taken off 594 00:32:27,200 --> 00:32:30,120 Speaker 1: the map four weeks and months on end because they 595 00:32:30,120 --> 00:32:33,000 Speaker 1: didn't have the resiliency in their cybersecurity program only five 596 00:32:33,080 --> 00:32:37,760 Speaker 1: days into three George CEO, CrowdStrike will have you back, Caroline, 597 00:32:37,800 --> 00:32:50,080 Speaker 1: and I hope at some point again. This year, Mobil, 598 00:32:50,400 --> 00:32:53,640 Speaker 1: the self driving startups spun off from Intel, says revenue 599 00:32:53,720 --> 00:32:57,400 Speaker 1: from automated driver assistance systems will total more than seventeen 600 00:32:57,520 --> 00:33:02,200 Speaker 1: billion dollars through Earlier. Like CEO and non Shashuit told 601 00:33:02,240 --> 00:33:07,480 Speaker 1: me about their ambitious plans, I think what we're telling 602 00:33:07,480 --> 00:33:10,400 Speaker 1: investors is if you look at the pipeline, the booked 603 00:33:10,440 --> 00:33:15,160 Speaker 1: business pipeline going forward is significantly higher than the guidelines 604 00:33:15,240 --> 00:33:18,920 Speaker 1: that we are giving. For example, the design wins of 605 00:33:18,960 --> 00:33:22,920 Speaker 1: this year of two account for six point seven billion 606 00:33:22,920 --> 00:33:26,520 Speaker 1: dollars of book business, which is four times more than 607 00:33:26,520 --> 00:33:30,280 Speaker 1: the guideline that the guidance for two. It means that 608 00:33:30,400 --> 00:33:32,600 Speaker 1: you know, when we look at our growth going forward, 609 00:33:32,720 --> 00:33:35,200 Speaker 1: it is very very significant. Significant. Also in our a 610 00:33:35,360 --> 00:33:39,040 Speaker 1: SP in terms of the dollar per car that mobilize 611 00:33:39,080 --> 00:33:43,640 Speaker 1: receiving is doubling as as we go. As we go forward, 612 00:33:44,040 --> 00:33:46,520 Speaker 1: for example, there's six point seven billion dollars accounts for 613 00:33:46,560 --> 00:33:49,840 Speaker 1: about sixty million chips design wins this year sort of 614 00:33:49,840 --> 00:33:52,720 Speaker 1: about one hundred dollar a SP compared to fifty dollar 615 00:33:52,960 --> 00:33:55,360 Speaker 1: SP of today. What those wins? That was it? The 616 00:33:55,400 --> 00:33:57,960 Speaker 1: idea that you kind of spun off from Mentel and 617 00:33:58,000 --> 00:34:01,080 Speaker 1: suddenly mobilizing the headlines and all the automakers and here 618 00:34:01,120 --> 00:34:03,640 Speaker 1: one go, I want to do business with their always 619 00:34:03,680 --> 00:34:05,840 Speaker 1: that kind of already in the works that that pipeline 620 00:34:05,840 --> 00:34:08,839 Speaker 1: and business. I think visibility will play a significant role 621 00:34:08,920 --> 00:34:11,160 Speaker 1: as we go as we go forward, but we are 622 00:34:11,239 --> 00:34:13,239 Speaker 1: only three months after the I p OH, so it's 623 00:34:13,239 --> 00:34:17,000 Speaker 1: not visibility that played the role here. It is things 624 00:34:17,040 --> 00:34:19,960 Speaker 1: that have been in the work. Especially we launched a 625 00:34:20,080 --> 00:34:26,240 Speaker 1: very significant product called Supervision in China, Vision Supervisious. Stop 626 00:34:26,239 --> 00:34:29,600 Speaker 1: and tell me what supervision is. Is this full autonomy 627 00:34:29,719 --> 00:34:33,200 Speaker 1: or is this a driver assistant technology? So legally the 628 00:34:33,280 --> 00:34:37,120 Speaker 1: driver assistant technology, but it's really full autonomy. So the 629 00:34:37,160 --> 00:34:39,840 Speaker 1: way it works together, the way to imagine it is 630 00:34:39,880 --> 00:34:42,919 Speaker 1: really the ultimate evolution of driving assist. Driving assist today 631 00:34:43,000 --> 00:34:46,560 Speaker 1: is a front facing camera sometimes the radar. Now we 632 00:34:46,600 --> 00:34:50,080 Speaker 1: imagine you have three hundred sixty degree awareness. Eight makeup 633 00:34:50,080 --> 00:34:54,839 Speaker 1: pixels are eleven cameras of eleven makeup pixels around the car, 634 00:34:55,360 --> 00:35:00,160 Speaker 1: providing huge resolution of data to a high performance computer. Thing. 635 00:35:00,560 --> 00:35:04,440 Speaker 1: You'll build a full you know, environmental model, details, environmental model, 636 00:35:04,719 --> 00:35:06,919 Speaker 1: and now you can drive autonomously. And is this really 637 00:35:06,960 --> 00:35:10,680 Speaker 1: why it's in consumer cars today? Seventies seven zero, seventy 638 00:35:10,680 --> 00:35:13,719 Speaker 1: thousand beagles in China already. Okay, this is from a 639 00:35:13,760 --> 00:35:16,760 Speaker 1: single brand. We have a book business for nine brands, 640 00:35:16,840 --> 00:35:20,520 Speaker 1: over six o em s launching starting from this year 641 00:35:20,640 --> 00:35:23,239 Speaker 1: up to when you say this year, do you mean 642 00:35:23,440 --> 00:35:27,160 Speaker 1: vehicles that roll off the production nine three and they 643 00:35:27,200 --> 00:35:30,640 Speaker 1: carry this technology, characters technology, So from the drivers experience. 644 00:35:30,680 --> 00:35:34,160 Speaker 1: It's kind of full autonomy, but from illegal it is 645 00:35:34,239 --> 00:35:36,319 Speaker 1: eyes on. You need to be you need to be 646 00:35:36,320 --> 00:35:38,760 Speaker 1: alert because there could be all sorts of black swans 647 00:35:38,920 --> 00:35:41,680 Speaker 1: or you know, edge cases in which the driver is 648 00:35:41,840 --> 00:35:44,359 Speaker 1: limited to China as a market or jurisdiction, or are 649 00:35:44,360 --> 00:35:47,240 Speaker 1: you rolling this outgload. We're rolling the SOUB globally, starting 650 00:35:47,239 --> 00:35:49,600 Speaker 1: in China, rolling the SOUB globally. And how much of 651 00:35:49,640 --> 00:35:54,640 Speaker 1: a contributing factor is supervision to that seventeen billion dollar 652 00:35:54,680 --> 00:35:58,680 Speaker 1: forecast through so it accounts for three point five billion. 653 00:35:59,200 --> 00:36:02,120 Speaker 1: But really the inter stinct number is that we started 654 00:36:02,520 --> 00:36:06,759 Speaker 1: deploying supervision only six months ago. So during it and 655 00:36:06,800 --> 00:36:10,480 Speaker 1: then during this six months, we have nine brands, six 656 00:36:10,520 --> 00:36:12,200 Speaker 1: car O m so with the book business for the 657 00:36:12,200 --> 00:36:14,400 Speaker 1: sports one, give me some names. I gonna mention the 658 00:36:14,480 --> 00:36:16,360 Speaker 1: names that it's not that important, but it's really global. 659 00:36:16,400 --> 00:36:19,560 Speaker 1: This is the first time you've seen me since twenties twenty. Yes, 660 00:36:19,680 --> 00:36:22,920 Speaker 1: but still you know, carmakers have their own agenda when 661 00:36:23,000 --> 00:36:26,680 Speaker 1: to really release. But I don't think it's critical who 662 00:36:26,680 --> 00:36:29,960 Speaker 1: it is, what it's critical. It's global, it's in Europe, 663 00:36:30,000 --> 00:36:32,919 Speaker 1: it's a new we, it's in China. So it's really 664 00:36:32,920 --> 00:36:36,400 Speaker 1: it's really global. And what is also important about supervision, 665 00:36:36,400 --> 00:36:40,080 Speaker 1: it's really a bridge towards full autonomy, towards what we 666 00:36:40,120 --> 00:36:44,080 Speaker 1: call eyes off, where you can legally disconnect from from driving, 667 00:36:44,400 --> 00:36:47,319 Speaker 1: because if you invest in supervision, going from eyes off 668 00:36:47,480 --> 00:36:51,040 Speaker 1: is really becoming incremental, adding active sensors, a bit more 669 00:36:51,040 --> 00:36:55,160 Speaker 1: compute than that's it. It wasn't taking your bait head 670 00:36:55,520 --> 00:36:57,200 Speaker 1: the last time I saw you. It wasn't going to 671 00:36:57,360 --> 00:37:00,120 Speaker 1: name names. But of course, I mean that's really and 672 00:37:00,360 --> 00:37:05,040 Speaker 1: that he's had a consumer conference, right, because mobilizn't known 673 00:37:05,080 --> 00:37:09,239 Speaker 1: by a consumer. It's just what's in your car already. Yeah, 674 00:37:09,280 --> 00:37:12,160 Speaker 1: to cut through the jargon, Mobili makes chips or system 675 00:37:12,200 --> 00:37:16,200 Speaker 1: on chips, which provides some kind of advanced driver assistance, 676 00:37:16,200 --> 00:37:18,640 Speaker 1: but they sell them directly to the car makers, or 677 00:37:18,640 --> 00:37:21,400 Speaker 1: at least to their Tier one suppliers. But what's interesting 678 00:37:21,480 --> 00:37:23,560 Speaker 1: is this goes back to the whole theme. This is real. 679 00:37:23,719 --> 00:37:26,720 Speaker 1: Their product is real, and they're ramping up their output 680 00:37:26,760 --> 00:37:28,560 Speaker 1: of it. And it's kind of a departure from the 681 00:37:28,560 --> 00:37:30,920 Speaker 1: cs of the past, where all of this stuff is 682 00:37:30,960 --> 00:37:33,560 Speaker 1: concept related or it's so distant. And I found that 683 00:37:33,600 --> 00:37:35,279 Speaker 1: quite refreshing and to be Honest, if you walk around 684 00:37:35,280 --> 00:37:36,800 Speaker 1: the halls here, there are lots of names that a 685 00:37:36,880 --> 00:37:39,759 Speaker 1: consumer wouldn't recognize, but they do have tangible products and 686 00:37:39,760 --> 00:37:41,920 Speaker 1: I find that fascinating. Yeah, I mean a m D 687 00:37:42,080 --> 00:37:44,480 Speaker 1: is one of the keynote speakers, and not many who 688 00:37:44,719 --> 00:37:46,960 Speaker 1: use the phone or use a technical device particularly no 689 00:37:47,040 --> 00:37:48,960 Speaker 1: that's an m D chip or not. But I suppose 690 00:37:49,000 --> 00:37:51,520 Speaker 1: to all of this it speaks to getting their name 691 00:37:51,520 --> 00:37:53,720 Speaker 1: out there, ramping up and as we're talking about yesterday 692 00:37:53,760 --> 00:37:56,640 Speaker 1: with Keith, it's all about prognosis and this year right, 693 00:37:56,640 --> 00:37:59,200 Speaker 1: even if I can say the word pragmatism, maybe a 694 00:37:59,280 --> 00:38:03,600 Speaker 1: little bit like the rest of the market's feeling pragmatism 695 00:38:03,600 --> 00:38:06,799 Speaker 1: and profit. That's the way all the peace. Meanwhile, we've 696 00:38:06,800 --> 00:38:08,719 Speaker 1: got a pee coming up, a president nons but it's 697 00:38:08,719 --> 00:38:13,000 Speaker 1: Technolysis Research, President, chief familist bobbo'donald. He's joining us. Yes, 698 00:38:29,400 --> 00:38:33,440 Speaker 1: let's wrap up today's coverage of Cree and all the 699 00:38:33,520 --> 00:38:37,920 Speaker 1: unfailings with bobbo Donald, President and chief analyst Technolysis Research. 700 00:38:38,000 --> 00:38:40,239 Speaker 1: You and I are back here in person for the 701 00:38:40,239 --> 00:38:43,879 Speaker 1: first time. What is your reactions what you see around? Well, 702 00:38:43,920 --> 00:38:45,799 Speaker 1: you know, I was came into the show kind of 703 00:38:45,840 --> 00:38:48,560 Speaker 1: curious to see would it really come back? Would this 704 00:38:48,640 --> 00:38:51,960 Speaker 1: be this? Yes? Kind of right. I mean I look 705 00:38:52,000 --> 00:38:55,600 Speaker 1: around the main floor and it's pretty busy. Actually, some 706 00:38:55,640 --> 00:38:57,960 Speaker 1: of the other places I've been in the Venetian for example, 707 00:38:57,960 --> 00:39:01,799 Speaker 1: we're actually busier. Um, so what the energy is there? Right, 708 00:39:01,800 --> 00:39:04,160 Speaker 1: there's a lot of energy. And I think what we're 709 00:39:04,160 --> 00:39:07,239 Speaker 1: seeing in general is that, as you were discussing in 710 00:39:07,239 --> 00:39:09,080 Speaker 1: the last segment, a lot of things are kind of 711 00:39:09,120 --> 00:39:12,520 Speaker 1: more practical. They're they're finishing the ideas that were brought 712 00:39:12,640 --> 00:39:14,279 Speaker 1: up a couple of years ago. Right, we had a 713 00:39:14,320 --> 00:39:18,360 Speaker 1: lot of big visions, uh in nineteen you know, nineteens 714 00:39:18,360 --> 00:39:21,640 Speaker 1: and early twenty and now it's like, we've got to 715 00:39:21,680 --> 00:39:24,759 Speaker 1: finish these things. It's not as exciting from a news perspective, 716 00:39:25,000 --> 00:39:29,080 Speaker 1: but it's practical. It's practical, it's perhaps profitable. Tell you 717 00:39:29,080 --> 00:39:31,240 Speaker 1: what's also practical as we went out to our audience 718 00:39:31,280 --> 00:39:33,560 Speaker 1: to just see and hear what they think of this 719 00:39:33,640 --> 00:39:36,200 Speaker 1: year of CS when they're excited about it, whether they're 720 00:39:36,200 --> 00:39:38,399 Speaker 1: being more practical, and what they're expecting to hear out 721 00:39:38,400 --> 00:39:41,400 Speaker 1: of it, Bob and overall we are twitter poll results, 722 00:39:41,400 --> 00:39:44,439 Speaker 1: whether yes, in fact that they are caring about what's 723 00:39:44,440 --> 00:39:46,560 Speaker 1: going to be happening out of CES they're paying attention 724 00:39:46,600 --> 00:39:49,480 Speaker 1: to the announcements. So thirty eight percent that was the majority. 725 00:39:49,520 --> 00:39:51,600 Speaker 1: But I have to hand it to you that like unfortunately, 726 00:39:51,560 --> 00:39:54,720 Speaker 1: it's pretty it was pretty evenly split. Thirty four percent 727 00:39:54,920 --> 00:39:57,000 Speaker 1: say no, they don't think it's going to be too busy. 728 00:39:57,040 --> 00:39:59,919 Speaker 1: They're not worried about the announcements. And then a third 729 00:40:00,000 --> 00:40:03,280 Speaker 1: of the people we asked basically said what is CS. 730 00:40:03,320 --> 00:40:06,080 Speaker 1: So for those who don't know what it is or 731 00:40:06,080 --> 00:40:08,560 Speaker 1: why they should care? What this here? Should they've been 732 00:40:08,600 --> 00:40:13,440 Speaker 1: listening for? What this here? Will they hair out of CS? Well? 733 00:40:13,480 --> 00:40:16,280 Speaker 1: You know to me, Caroly, Caroline, part of the issue 734 00:40:16,480 --> 00:40:20,160 Speaker 1: is around AI becoming really mainstream, and we're seeing that 735 00:40:20,200 --> 00:40:22,560 Speaker 1: in a lot of interesting ways. We see it in 736 00:40:22,640 --> 00:40:24,799 Speaker 1: small levels. We see it in things like you know, 737 00:40:24,880 --> 00:40:27,360 Speaker 1: John Dear did the keynote this morning, and their tractors 738 00:40:27,360 --> 00:40:29,000 Speaker 1: and the things that they do in the AI they're 739 00:40:29,080 --> 00:40:31,319 Speaker 1: using their We see it in the new chips you 740 00:40:31,360 --> 00:40:34,680 Speaker 1: mentioned a m D and until they are integrating AI 741 00:40:34,880 --> 00:40:38,680 Speaker 1: processing now, obviously the impact of things like chat, GPT 742 00:40:39,160 --> 00:40:42,839 Speaker 1: and Dolly have opened people's eyes to what AI can do, 743 00:40:43,280 --> 00:40:45,160 Speaker 1: and so all of a sudden. I think there's a 744 00:40:45,160 --> 00:40:48,040 Speaker 1: lot more recognition that, hey, this theoretical thing that we've 745 00:40:48,040 --> 00:40:50,640 Speaker 1: been talking about is now very real and it's going 746 00:40:50,680 --> 00:40:52,640 Speaker 1: to have an impact. And we see it playing out 747 00:40:52,640 --> 00:40:55,360 Speaker 1: in other small ways, like just making things easier to 748 00:40:55,520 --> 00:40:58,759 Speaker 1: use and adapting to how we use them. Talk to 749 00:40:58,840 --> 00:41:03,080 Speaker 1: us about efficiencies, easier to use, interoperability as well, because 750 00:41:03,400 --> 00:41:05,719 Speaker 1: for many they've all got the household gadgets were not 751 00:41:05,880 --> 00:41:07,879 Speaker 1: actually talked to each other. This seems to be something 752 00:41:07,920 --> 00:41:12,600 Speaker 1: that people are really now tackling with AI too. Yeah. Well, 753 00:41:12,640 --> 00:41:14,719 Speaker 1: and you know, one of the big stories out of 754 00:41:14,719 --> 00:41:17,640 Speaker 1: the show is around what's called the Matter Standard, and 755 00:41:17,920 --> 00:41:19,920 Speaker 1: it's a it's a technical standard, is just a way 756 00:41:19,960 --> 00:41:22,919 Speaker 1: for devices to communicate with each other in a smart home. 757 00:41:23,200 --> 00:41:26,560 Speaker 1: But what's why it's important is it allows things from 758 00:41:27,000 --> 00:41:31,440 Speaker 1: Amazon and Apple and Google to all start to work together. 759 00:41:31,480 --> 00:41:35,200 Speaker 1: In the past, those were completely separate ecosystems. Now you 760 00:41:35,239 --> 00:41:38,040 Speaker 1: can get all these devices working together and a bunch 761 00:41:38,080 --> 00:41:40,759 Speaker 1: of other players, and that's new, and that's different. Their 762 00:41:40,800 --> 00:41:44,919 Speaker 1: exhibitors here, they're big tech companies, are also bankers, investors, analysts. 763 00:41:45,480 --> 00:41:47,560 Speaker 1: You can't get away from the headlines of people talking 764 00:41:47,600 --> 00:41:50,359 Speaker 1: about Amazon layoffs. Yeah, I mean it's a big story. 765 00:41:50,400 --> 00:41:53,200 Speaker 1: And interestingly, I just met with the Ammon Amazon Devices 766 00:41:53,200 --> 00:41:56,000 Speaker 1: Group right before I came here, in fact, and you know, 767 00:41:56,040 --> 00:41:58,040 Speaker 1: I asked him about that and they're like, look, we 768 00:41:58,080 --> 00:42:01,160 Speaker 1: are still very much committed because they've been driving a 769 00:42:01,200 --> 00:42:03,480 Speaker 1: lot obviously with Alexa uh there, and a lot of 770 00:42:03,520 --> 00:42:05,600 Speaker 1: the rumors have been about that Devices group, but they 771 00:42:05,600 --> 00:42:07,919 Speaker 1: are like, look, you know, the whole Devices group isn't 772 00:42:07,920 --> 00:42:10,920 Speaker 1: going away. Yes, we're being asked to refine things and 773 00:42:10,960 --> 00:42:14,080 Speaker 1: focus on the things that matter, and matter pardon the pun, 774 00:42:14,160 --> 00:42:16,080 Speaker 1: happens to be one of them. But they also have 775 00:42:16,080 --> 00:42:20,799 Speaker 1: announcements around sidewalk, which is there another smart home technology capability, 776 00:42:21,360 --> 00:42:24,239 Speaker 1: all of which are designed to ultimately allow people to 777 00:42:24,280 --> 00:42:26,960 Speaker 1: actually use these smart home devices in a way that's 778 00:42:26,960 --> 00:42:29,600 Speaker 1: more intuitive very quickly. One products you're looking out for, 779 00:42:29,719 --> 00:42:33,959 Speaker 1: what is it? Um? I would say, I'm actually most 780 00:42:34,000 --> 00:42:36,560 Speaker 1: curious to see the PC chips from m D and 781 00:42:36,600 --> 00:42:40,520 Speaker 1: Intel the PCs day enabled. There you go, Bob, great 782 00:42:40,520 --> 00:42:43,080 Speaker 1: to have your voice back on past. Bobo Donal, president 783 00:42:43,120 --> 00:42:46,560 Speaker 1: and chief Antilistic Technolysis Research get then get his steps 784 00:42:46,600 --> 00:42:50,000 Speaker 1: back in as he marches through the vast quantity of 785 00:42:50,080 --> 00:42:52,480 Speaker 1: exhibitions and Ed, we want to thank you that does 786 00:42:52,520 --> 00:42:54,680 Speaker 1: it for this addition of blue bag technology. But stick 787 00:42:54,760 --> 00:42:56,960 Speaker 1: with Ed. He's there on social media, but also he's 788 00:42:56,960 --> 00:42:59,360 Speaker 1: still in Vegas for CS for the conversation with the 789 00:42:59,400 --> 00:43:02,560 Speaker 1: Delta Sea you Ed basting the two eds lockhorns. You 790 00:43:02,600 --> 00:43:04,719 Speaker 1: don't want to miss it. Plus, don't forget to check 791 00:43:04,719 --> 00:43:07,160 Speaker 1: out our podcast. Find it on the terminal on Apple 792 00:43:07,239 --> 00:43:10,680 Speaker 1: or Spotify on iHeart from New York from Las Vegas, 793 00:43:10,760 --> 00:43:11,560 Speaker 1: lis A. Broomberg