Speaker 1: From the heart of where innovation, money and power callive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Chay. Welcome to a very special edition of Bloomberg Technology.
Speaker 1: I'm Emily Chang in San Francisco. We've got so much,
Speaker 1: so much to cover today. In the next hour, Crypto
Speaker 1: reeling from the f g X explosion. Sam Bankman freed
Speaker 1: apologizing after allegedly using customer funds to invest in other projects.
Speaker 1: Even the White House is monitoring this situation. Plus more
Speaker 1: of Twitter's top executives leave the company, including the head
Speaker 1: of trust and safety and Elon Musk Tell's employees at
Speaker 1: an all hands meeting that bankruptcy is not out of
Speaker 1: the question, and a not so cold war between the
Speaker 1: U S and China along with a looming recession. Just
Speaker 1: as the chip crisis was easy, a m D isn't
Speaker 1: slowing down launching a new chip as it continues to
Speaker 1: take share from Intel and a m D CEO Lisa
Speaker 1: Sue joins us right here in an exclusive interview, and
Speaker 1: the women investors of All Rays who started shaking up
Speaker 1: Silicon Valleys grow culture share their thoughts on how much
Speaker 1: progress has and hasn't been made, and how startups survived
Speaker 1: their toughest test yet. But first, as you all know,
Speaker 1: this is my last day sitting in this chair, and
Speaker 1: I have to get through the next hour, So I'm
Speaker 1: not going to get too deep right now, but I
Speaker 1: want you to know that this show is going to
Speaker 1: be special and we have a lot of news to
Speaker 1: get through. We're getting more details on the crypto blow
Speaker 1: up now. According to the Wall Street Journal, f t
Speaker 1: X lent billions of dollars worth of customer assets to
Speaker 1: pay for risky bets by its affiliated trading firm Alami.
Speaker 1: To research Bloomberg, Shinali Bossik has been covering every step
Speaker 1: of the story or Shinali, Wow, what has happened in
Speaker 1: the last forty eight hours? Where does things stand right now? Emily,
Speaker 1: just a breath taking amount of money that we are
Speaker 1: talking about here. In addition to venture capitalists having to
Speaker 1: mark down their state two zero uh sequoia really coming
Speaker 1: up front on that note and other investors likely to follow,
Speaker 1: you do have the Wall Street Journal reporting that of
Speaker 1: the sixteen billion dollars in customer assets that were on
Speaker 1: the f t X platform, more than half of the
Speaker 1: customer funds were lent to the sister company, Alameda. So
Speaker 1: obviously this is going to be a big question of discussion,
Speaker 1: a question of concern as we keep on moving along.
Speaker 1: We did see interestingly Sam bingg but Free to take
Speaker 1: to Twitter today and start to address the idea that
Speaker 1: he messed up. He said it over and over again,
Speaker 1: but that he really wanted to still try to find
Speaker 1: money to make investors, that investors clients rather whole, and
Speaker 1: that those clients would be made whole before any investors
Speaker 1: would be And again, remember this is not a bankruptcy
Speaker 1: process yet by any means, but if it were to
Speaker 1: be in a bankruptcy process, it would be much more
Speaker 1: complicated in terms of figuring out who got assets and
Speaker 1: who got them first. Now, f t X US was
Speaker 1: never part of that deal that we were talking about
Speaker 1: the last couple of days when it came to Finance
Speaker 1: potentially buying f t X dot com assets outside of
Speaker 1: the United States. But we are seeing that f t
Speaker 1: X is saying now that they're going to be potentially
Speaker 1: halting trading and withdrawals in the coming days here. Now
Speaker 1: that is very important because if trading has halted there
Speaker 1: as well, then you really have another part of the
Speaker 1: ft X empire that was very connected to the financial industry,
Speaker 1: had a different set of investors, and was also the
Speaker 1: one that really helped facilitate the bailouts of some of
Speaker 1: these other crypto firms also potentially in trouble here. So again,
Speaker 1: the story really is just beginning, even though it feels
Speaker 1: like it's been unraveling very, very drastically for the last
Speaker 1: couple of days. Son, You've got investors, very prominent investors,
Speaker 1: telling their clients that their investments and f t X
Speaker 1: are now basically worthless. How are investors responding, How are
Speaker 1: regulators responding? You know, we've spoken to a number of
Speaker 1: investors and regulators. We have to remember that there is
Speaker 1: an active investigation going on. This is the SEC, this
Speaker 1: is the Department of Justice, this is the CFTC. And
Speaker 1: what's remarkable about this emily is not very long ago,
Speaker 1: I mean really days ago, when there was not this
Speaker 1: type of trouble and f t X. You saw f
Speaker 1: t X working with regulators to try to change the
Speaker 1: rules of the game. Uh, they were working with the
Speaker 1: SEC to to advance a proposal that would really reduce
Speaker 1: a reliance on clearing houses for certain trades. Uh, and
Speaker 1: it was something that the CFTC chair could really change
Speaker 1: a broader part of the financial system if this word
Speaker 1: to go through. So to your point here, regulators are
Speaker 1: sitting here and not just investigating the circumstance circumstances at hand,
Speaker 1: the use of the client funds, which is the primary
Speaker 1: concern here, as well as what happens to the money.
Speaker 1: How are people made whole and how did you keep
Speaker 1: this from happening again when we've seen liquidity issues multiply
Speaker 1: in the cryptocurrency industry throughout the entire year. As a
Speaker 1: one crypto executive put it on Twitter today, people are
Speaker 1: asking about contagion when you think about f t X,
Speaker 1: isn't this the contagion We have been seeing it all year?
Speaker 1: And the reality is one by one, customers that are
Speaker 1: exposed to f t X are exposed, are are releasing
Speaker 1: their exposures by the millions, and you have to wonder
Speaker 1: what comes next. All right, bloombergsh Ally Bostic, thank you.
Speaker 1: We're gonna stay tuned to your reporting on this story. Meantime,
Speaker 1: Twitter owner Elon Musk emailed staff for the first time
Speaker 1: and warned of quote difficult times ahead Musk, writing that
Speaker 1: there is no way to sugarcoat the economic outlook. He
Speaker 1: also said remote work not an option anymore on that
Speaker 1: bankruptcy isn't out of the question. Meantime, the FTC says
Speaker 1: it's tracking Twitter developments with concern. Bloomberg sprat Stone, our
Speaker 1: senior executive tech editor, joining us now. I mean, in
Speaker 1: my twelve years covering tech, I can't remember a more
Speaker 1: disruptive time Twitter could go bankrupt. I mean, the news
Speaker 1: coming out of Twitter seems more cataclysmic every single day.
Speaker 1: And what has stuck out today are these resignations from
Speaker 1: key Twitter personnel, the chief security officer, the chief privacy officer,
Speaker 1: just now you l Roth, the head of trust and security,
Speaker 1: showing an absolute lack of confidence in Twitter's ability to
Speaker 1: secure user data and comply with an FDC consent decree.
Speaker 1: And I've actually heard people who's left Twitter saying, at last,
Speaker 1: yoel is still there now even you know all the
Speaker 1: person who was in charge of trust and safety is gone.
Speaker 1: The problem is Elon is conducting himself like Elon conducts himself.
Speaker 1: He's an imperial CEO, accustomed to moving very quickly, working
Speaker 1: at all hours of the night, not very accountable to
Speaker 1: his board a Twitter and SpaceX and and you know,
Speaker 1: in most cases not that interested with complying with the
Speaker 1: letter of the law. I mean, we've seen that with Twitter,
Speaker 1: with Tesla and the sec. The problem here is that
Speaker 1: the FDC has a consent decree with Twitter requiring it
Speaker 1: to document new products and how it's safeguarding customer information.
Speaker 1: And clearly executives and Twitter are not very comfortable with
Speaker 1: how Elon is conducting himself now two weeks into ownership, right,
Speaker 1: it's only been it's been days, right that he has
Speaker 1: owned this company. How do you even imagine that this
Speaker 1: plays out? So you know this this show today is
Speaker 1: about history. Right, You're almost twelve years anchoring the show. Um,
Speaker 1: so let's go back to some history. Two twelve, one
Speaker 1: year after we started the show, we did a cover
Speaker 1: story in Business Week and called Twitter the company that
Speaker 1: couldn't kill itself. And we we send that because of
Speaker 1: all the chaos internally and its inability to come up
Speaker 1: with new forms of revenue, new products, and yet there
Speaker 1: was something about the company that users just can't look
Speaker 1: away from. And that's certainly something we've seen this week
Speaker 1: with the elections, with with Elon's display user growth is up,
Speaker 1: and and maybe that's a little point of optimism that
Speaker 1: despite all of this, as long as he doesn't bleed
Speaker 1: out from shooting himself in the foot again and again,
Speaker 1: you know, maybe he can rescue Tweeter even I tweeted
Speaker 1: right before the show and I just thought, God, I
Speaker 1: hope Twitter still exists when this show is over. It's
Speaker 1: so important to so much of you know, Silicon Valley
Speaker 1: and obviously dialogue around the world. You've been covering Silicon
Speaker 1: Valley longer than I have. Eleven thousand people laid off
Speaker 1: at Meta, thousands of people laid off at Twitter, Apple, Amazon, Alphabet,
Speaker 1: everyone cutting costs and thinking how are we going to
Speaker 1: get through a recession? How does this rank compared to
Speaker 1: the financial crisis, the dot com bust? You know what,
Speaker 1: this is just how the place works in Silicon Valley.
Speaker 1: Tech is cyclical. It's happened again and again for for decades,
Speaker 1: you know, the personal computer recession, the dot com bust,
Speaker 1: the Great Recession. You know, if anything, those times might
Speaker 1: have been worse in terms of the number of layoffs.
Speaker 1: And the other thing I would point out now is
Speaker 1: that Silicon Valley has about two percent unemployment in two
Speaker 1: thousand nine. It was, so you know, the difference might
Speaker 1: be that jobs are harder to come by for for
Speaker 1: the recently laid off, I mean the other differences that
Speaker 1: were coming off a very extraordinary period during the pandemic,
Speaker 1: where you know, Twitter hired, Facebook hired employees, Amazon doubled
Speaker 1: in size. So yes, these are significant cutbacks, but it
Speaker 1: comes after a period of maybe overly optimistic growth. All right, well,
Speaker 1: we're going to be watching how your team continues to
Speaker 1: cover these stories, Bradstone, as always, thank you. Turning to
Speaker 1: chips now, chip delivery times dropped by six days in October,
Speaker 1: the most one survey showing chips supply across all major
Speaker 1: product areas now more quickly available. Let's talk about this
Speaker 1: and more with a m D CEO, Lisa Sue. Now,
Speaker 1: am D just announced an update to its server chip
Speaker 1: line up, taking another swing at rival Intel. And it's
Speaker 1: so great to see you here at Lisa in person.
Speaker 1: It's one time we did this a lot times virtually
Speaker 1: in the pandemic, and I'm really glad that you're here today. UM,
Speaker 1: I have to ask first what your take is on
Speaker 1: what's happening in the market right now. What is your outlook? Yeah, absolutely, Well,
Speaker 1: first of all, it's great to be here in person
Speaker 1: with you, and by the way, congratulations on this very
Speaker 1: special show. So we're excited to be here. Um. Look,
Speaker 1: you know, when I look at the market, I would
Speaker 1: say a couple of things. You know, the semiconductor market
Speaker 1: has been so strong over the last several years, and
Speaker 1: we've certainly been trying to ramp up production across the board.
Speaker 1: When you look at today's market, you know, there's certain
Speaker 1: portions of the market that are actually doing extremely well.
Speaker 1: Things like you know, our data center business are embedded
Speaker 1: business UM that services UM aerospace and defense, industrial, automotive,
Speaker 1: you know, these parts of the businesses. And then there
Speaker 1: are some part parts of the businesses that are you know,
Speaker 1: going through a little bit of a lower demand period
Speaker 1: and those are like you know PCs and UM consumer devices,
Speaker 1: and so we're navigating through that. But you know, again
Speaker 1: it's a very exciting day for us because we just
Speaker 1: launched our new server chips UM. So I'm so glad
Speaker 1: that we could talk to you a little bit about that.
Speaker 1: So let's talk about the new chip. How do you
Speaker 1: hope this one will change the game. Well, I have
Speaker 1: to say, you know, you know, our server road DApp
Speaker 1: has been like a five year journey. So we launched
Speaker 1: the first EPIC server line in two thou seventeen and
Speaker 1: over the last five years we've had three generations of
Speaker 1: truly leadership performance. So with our new generation, fourth generation
Speaker 1: EPIC and that we code name in GENERA, it's really
Speaker 1: game changing for the server market. And you know when
Speaker 1: I talk about things like you know, UM significantly higher performance,
Speaker 1: UM significantly better UM overall energy efficiency, significantly lower operating
Speaker 1: costs depending on which environment that you're in, and we're
Speaker 1: talking about you know, two and a half to three
Speaker 1: times the competition. So we're extremely excited with it. You've
Speaker 1: gotten a lead now over Intel. How sustainable is that lead?
Speaker 1: Because Pat Gelsinger has said, we're going to be in
Speaker 1: the lead again, and what if this is just a
Speaker 1: moment in the sun. Well, what I can say is
Speaker 1: I think hopefully the last five years has been proof.
Speaker 1: You know, you know, our goal has been to every
Speaker 1: year have a stronger and stronger roadmap to broaden how
Speaker 1: we work with our partners and customers. You know, if
Speaker 1: you look across the world at cloud data centers. You know,
Speaker 1: a m D is now the standard for cloud data centers,
Speaker 1: and it's really because of our performance and our overall
Speaker 1: efficiency and our total cost of ownership. So you know,
Speaker 1: we are not taking our our foot off the gas pedal.
Speaker 1: We're going to continue to innovate very strongly. So let's
Speaker 1: talk about Look, if we are going into a prolonged recession,
Speaker 1: how is your strategy evolving. Are you trying to cut costs?
Speaker 1: Are you going to do layoffs? Well, it's a very
Speaker 1: interesting point, Emily. You know, I think UM, a couple
Speaker 1: of things we've been working on really diversifying our business.
Speaker 1: So it's not just about you know, one product line.
Speaker 1: We actually have a broad products a set of product
Speaker 1: lines UM. As I said, data center embedded actually quite strong,
Speaker 1: and we're gaining share UM. And then on the PC
Speaker 1: market and consumer it's a little bit lower, and we're
Speaker 1: navigating through that. And you know, our roadmaps take three
Speaker 1: to five years to develop, so we are not at
Speaker 1: all backing off of our roadmap. UM, We're gonna navigate
Speaker 1: through this. We're going to be tighter on overall operat expenses,
Speaker 1: but we're also gonna UM invest in R and D
Speaker 1: so that we can keep increasing our lead. What about
Speaker 1: rising tension between the US and China, How does that
Speaker 1: change the game for you? Just as the chip crisis
Speaker 1: was starting to ease. Well, we're always you know, very uh,
Speaker 1: you know, watching the situation as it relates to the geopolitics.
Speaker 1: I would say, you know, China is an important market,
Speaker 1: but we're also very cognizant of, um, the US you
Speaker 1: know restrictions, and we're operating within those. And I would
Speaker 1: say that we've you know again navigating through you know
Speaker 1: these things. How low can PCs go? So I think
Speaker 1: there's this question, was this just a pandemic play? Well,
Speaker 1: I think PCs are extremely important in the overall ecosystem.
Speaker 1: Now there's no question, um that there was you know,
Speaker 1: a it of excess you know, sort of very higher
Speaker 1: demand over the last you know, eighteen months, two years,
Speaker 1: and now we're in a period of lower demand. But
Speaker 1: I still believe you know, the PC experience when you
Speaker 1: talk about working from home, when you're talking about working
Speaker 1: on the road, when you talk about enterprises and everything
Speaker 1: that you have to do there, when you talk about gaming, um,
Speaker 1: you know, there's definitely a very very good overall demand
Speaker 1: and we just have to work through, you know, sort
Speaker 1: of this next couple of quarters and ensure that you
Speaker 1: know that the demand supply picture gets back into balance.
Speaker 1: At the Fortune Most Powerful Woman's Summit recently, you said
Speaker 1: running a m D is like running a new company
Speaker 1: every two years. Explain that it is something like that.
Speaker 1: But you know, the way I think about it is, Look,
Speaker 1: technology is such fast paced, right if you think about
Speaker 1: UM the technology trends, and if you think about the
Speaker 1: size of our company. When I first took over as
Speaker 1: CEO UM, we were a five billion dollar company. You
Speaker 1: know this year will be a twenty three and a
Speaker 1: half billion dollar company. We have a lot more employees,
Speaker 1: we have a lot more product lines, and you know,
Speaker 1: the world is a different place. So we love it.
Speaker 1: You know, we love the dynamic nature of the business,
Speaker 1: and we also believe that that's one of our core
Speaker 1: strengths is we're able to really navigate through, you know,
Speaker 1: sort of a lot of different things. Am D shares
Speaker 1: were on a tear for so long and they have
Speaker 1: taken a hit with the rest of the market. Is
Speaker 1: that hard to watch? Does it doesn't change anything for
Speaker 1: you as you run the company? Well, we certainly believe that,
Speaker 1: you know, the right thing to do is to focus
Speaker 1: on the long term strategy. And the long term strategy
Speaker 1: is you know, product roadmaps, UM, you know, deep deep
Speaker 1: customer relationships, continuing to innovate, and you know that's where
Speaker 1: we spend our time. And of course, you know, we
Speaker 1: all want to ensure that all of our stakeholders are
Speaker 1: are happy with the progress, and so we're always you know,
Speaker 1: working on those things. And I know I've asked you
Speaker 1: this multiple times over the last several years, the state
Speaker 1: of the chip crisis. What phase are we moving into now? Well,
Speaker 1: I think you said it earlier. I think we are
Speaker 1: we have gotten over the hump of you know, sort
Speaker 1: of the the chip shortage as it was called. I
Speaker 1: know you've asked me that several times over the last
Speaker 1: couple of years, the question of the day and two
Speaker 1: years now. And I think what I've said each time
Speaker 1: is that the semiconductor industry knows how to do this.
Speaker 1: We know how to put on enough capacity to satisfy demand. Um.
Speaker 1: We have seen um, you know, a much better supply
Speaker 1: demand balance of now and certainly over the last couple
Speaker 1: of quarters. And I think we are, you know, for
Speaker 1: the most part meeting supply. UM that that is a
Speaker 1: meeting demand that's out there. Now. There are certain still
Speaker 1: pockets of shortages and those will be worked through, you
Speaker 1: know as well. So, so what does the chip industry
Speaker 1: look like through a recession? How does the chip industry
Speaker 1: in your view whether this we have certainly were very
Speaker 1: familiar with these types of cycles and what it means is,
Speaker 1: you know, we have periods of build phase, which is
Speaker 1: what the last eighteen twenty four months were, and then
Speaker 1: we have you know, a periods where there's less capacity
Speaker 1: being brought on, and you know, again we know how
Speaker 1: to manage through these things. Perhaps the most important thing
Speaker 1: though is to focus on, you know, what are the
Speaker 1: secular growth drivers that are going to continue to be important.
Speaker 1: That's why data centers are so important, um, energy efficiency
Speaker 1: becomes so important, business transformation for enterprises are so important.
Speaker 1: And then you know things like you know, gaming and
Speaker 1: you are also uh, you know, secular growth drivers. So
Speaker 1: you know, I'm very optimistic about the long term and
Speaker 1: we're you know, very well prepared to manage through the
Speaker 1: short terms. At a time of m and a is
Speaker 1: at a time of consolidation. Well, first of all, we're
Speaker 1: extremely excited with how well are recent m and A
Speaker 1: has done. So, you know, we close this is links
Speaker 1: acquisition in February. They've now been part of the you know,
Speaker 1: the am D family for the last you know, seven
Speaker 1: eight months. It's gone fantastically well. UM. The business is
Speaker 1: fantastics or above our acquisition case. We also acquired UM
Speaker 1: a company called Pensando, which is a specialist in you know,
Speaker 1: networking technologies as well. And so you know, m and
Speaker 1: A has been very good for us. But I would say,
Speaker 1: you know, running a very strong organic business is also
Speaker 1: UM sort of front and center in what we do.
Speaker 1: And d CEO Lisa Sue will have more to come together,
Speaker 1: I hope, UM. But I really appreciate you coming to
Speaker 1: talk to us today in San Francisco. Thank you so much,
Speaker 1: so wonderful to see you in Congratulations again, thank you. Alright,
Speaker 1: we've got more of Bloomberg Technology after this quick break.
Speaker 1: This is Bloomberg Meta's first major job cuts might not
Speaker 1: cut it. The Facebook parent laid off eleven thousand workers
Speaker 1: this week, but a let's say that won't be nearly
Speaker 1: enough to get the company back to being as profitable
Speaker 1: as it was two years ago, revenue still falling, spending
Speaker 1: has ballooned, and the money saved on job cuts just
Speaker 1: to drop in a very large bucket, and it was
Speaker 1: the largest single own art auction in history. In just
Speaker 1: two and a half hours, Christie's presided over the sale
Speaker 1: of sixty artworks for an unprecedented one and a half
Speaker 1: billion dollars. They came from the collection of late Microsoft
Speaker 1: co founder Paul Allen, among them works from Lucien Freud, Goos,
Speaker 1: Dave Clint, and Paul says On. Okay, well, welcome back
Speaker 1: to Bloomer Technology. I'm Emily Chang in San Francisco. Now
Speaker 1: to the wave of tech layoffs, cryptocarnage, and Twitter tearing
Speaker 1: on the possibility of bankruptcy. According to Elon Musk, what
Speaker 1: does it all mean for startups that only just survived
Speaker 1: a pandemic? I want to bring in Alien lead founder
Speaker 1: and managing partner of Cowboy Ventures now who coined the
Speaker 1: term unicorn almost ten years ago, and Jenny left Court,
Speaker 1: general partner at Freestyle VC, both of whom have been
Speaker 1: very very active in helping women get more access in
Speaker 1: Silicon Valley. So first, thank you both for being here today.
Speaker 1: Thank you for having us on a special day. Um,
Speaker 1: it's truly an honor for both. Kiddy guys are so
Speaker 1: sweet and it's it's it's it's a crazy newsday. It's
Speaker 1: a crazy time for Silicon Valley. You've both been investing
Speaker 1: a long time. What's your read on all of this? Sorry? Um,
Speaker 1: I mean this is the correction that we've all been
Speaker 1: talking about for years that there's just no way right
Speaker 1: that you know, economies are cyclical. Tech has been cyclical,
Speaker 1: and we've had a crazy bowl market for a really
Speaker 1: long time and to the point where people only were
Speaker 1: it lasted so long that people thought that this is
Speaker 1: how companies traded forever. But it was such an anomaly.
Speaker 1: So it's it's quite unfortunate, but it kind of had
Speaker 1: to happen. So how bad does it get or how
Speaker 1: bad are you preparing for it to get? I think
Speaker 1: we're at the tip of the iceberg. I think it's
Speaker 1: going to get a lot worse. It's we're just starting
Speaker 1: with the reckoning of like years of going fast and loose. Uh.
Speaker 1: And so I think now you see Stripe, you see
Speaker 1: all the really good profitable company US making layoffs. There
Speaker 1: isn't a company in town that is not cutting. And
Speaker 1: I think you're gonna say a lot of startups have
Speaker 1: to wind down. So how does this impact startups? I mean,
Speaker 1: there's so much focus on the big names, but there
Speaker 1: are all of these companies out there, the unicorns, the
Speaker 1: newly anointed unicorns that are struggling. Yeah, and I think
Speaker 1: the it's not going to happen in one fell swoop.
Speaker 1: It's not going to be like yesterday. I was right
Speaker 1: because a lot of companies has a lot of money
Speaker 1: from private markets over the past three years and they're
Speaker 1: kind of living off what they raised and they're cutting.
Speaker 1: Some of them may not cut deep enough. And also
Speaker 1: some of them were built for a different time when
Speaker 1: budgets were a lot more flush. They built products that
Speaker 1: were in some cases we have them. Tech has been
Speaker 1: a little bit of a circular economy where there was
Speaker 1: just a lot of private money. It was a lot
Speaker 1: you know, a lot of people thought they were geniuses,
Speaker 1: and a lot of them are geniuses, but also geniuses
Speaker 1: in is like basically a zero interest rate environment and
Speaker 1: a lot of things are going to change in the
Speaker 1: next couple of years. Well, and there's also this attern
Speaker 1: matching that goes on in silicon valid whereby you look
Speaker 1: for founders who look a certain way, and maybe Sam
Speaker 1: Bank been freed, for example, matched a pattern of what
Speaker 1: investors think successful founders look like. What is the lesson here?
Speaker 1: So hopefully the lesson is that we all have to
Speaker 1: do more with less, and so those who have been
Speaker 1: spending so much money and haven't actually gotten anywhere will
Speaker 1: not continue to get the next check, and the people
Speaker 1: who have done a lot with very little, let's say
Speaker 1: women or people of color, will actually be given the
Speaker 1: advantage in this new market. How are you changing? Are
Speaker 1: you changing your strategy? Are you are you investing? Are
Speaker 1: you waiting it out? I mean, I think both of
Speaker 1: us are fairly disciplined investors. So we may be a
Speaker 1: little old fashioned in that way, which maybe seemed a
Speaker 1: little out of fashion a couple of years ago, but true,
Speaker 1: you know, I think, uh, I'm optimistic. It's obviously it's
Speaker 1: horrible for a lot of really talented people who have
Speaker 1: gotten laid off. And you know, there's just been a
Speaker 1: lot of x us and you mentioned mostly kind of
Speaker 1: pattern matching, and a lot of people have walked into
Speaker 1: venture capital pitch rooms or zooms and matched a pattern
Speaker 1: of like you know, Voyd genius or kind of like
Speaker 1: brilliant genius who often sometimes wind up being like a
Speaker 1: brilliant jerk. And I don't know how many of these
Speaker 1: stories it's going to take for people to realize that
Speaker 1: that's not always the right, like, that's not always the
Speaker 1: recipe for success. But now we're at least getting some
Speaker 1: examples that people can think about and think, actually, a
Speaker 1: person who's actually treats people with respect and builds a
Speaker 1: resilient culture um and build a diverse team is actually
Speaker 1: going to survive the ups and downs of economic cycles,
Speaker 1: perhaps better than just move fast and break things. Since
Speaker 1: you coined the term unicorn, yes to refer to companies
Speaker 1: with you know, a billion dollar evaluation or more. My
Speaker 1: colleague Katie Roof today, she she said, asked a leen
Speaker 1: about unicorantine unicorps. I hadn't heard that. Yeah, yeah, yeah,
Speaker 1: we actually I feel like I came up like years ago, right,
Speaker 1: but then it didn't really happen. But it's happening. Yeah.
Speaker 1: I think it's uh, I mean, I think there's gonna
Speaker 1: be a lot of down rounds. So you know that
Speaker 1: already this year, the number of unicorns being minted has
Speaker 1: slowed considerably versus last year, but still like when we
Speaker 1: did the analysis, it was almost ten years ago. Like
Speaker 1: you mentioned, there was it was only US so and
Speaker 1: also the global markets weren't what they are now. Uh,
Speaker 1: the original set had about forty companies in it, right,
Speaker 1: so if you look at like different sources right now,
Speaker 1: the set has over a thousand now it's it's global,
Speaker 1: so in the US is about half. So so it
Speaker 1: means like about five dred at least five US based
Speaker 1: Unicorn so more than ten x um. I think that
Speaker 1: will come down. So it's funny. Next summer is like
Speaker 1: the ten year anniversary of the original analysis, and I
Speaker 1: was I'm planning on doing an update, but like I
Speaker 1: thought about doing it this past summer, it would be
Speaker 1: a very different update if I had done it less
Speaker 1: this past summer than when I think, when we do
Speaker 1: it next summer, how are you changing your strategy or
Speaker 1: thinking of navigating through this? Would like a lean. I mean,
Speaker 1: I was a founder in two thousand I was a
Speaker 1: founder in two thousand eight. I've been kind of expecting this,
Speaker 1: waiting for it, and kind of, like Alien said, feeling
Speaker 1: foolish to not be playing as fast and loose as
Speaker 1: some of our colleagues. And so right now, I guess
Speaker 1: what I'm doing is I'm making sure our companies are
Speaker 1: in really good shape, those who had the luck of
Speaker 1: raising in the good times, making the most of that capital,
Speaker 1: really getting just surgical and execution and making sure that
Speaker 1: they make it last, maybe get to profitability, and then
Speaker 1: being really careful with deploying capital, making sure they're great
Speaker 1: companies that I believe in, that can go the long haul.
Speaker 1: They were building for the right reasons, and um, well
Speaker 1: we're going to be patient. We both have tons of
Speaker 1: capital deploy or plenty of capital floy but no feeling,
Speaker 1: no rush to do. So you're both founders of All Rays.
Speaker 1: You've worked really hard to change the game for women
Speaker 1: as investors and entrepreneurs in Silicon Valley. How much progress
Speaker 1: has been made? And are you worried a downturn set
Speaker 1: some of that progress back? So we were just reflecting
Speaker 1: as we were watching you and the earlier segments that
Speaker 1: you wrote, wrote Topia and published it around at the
Speaker 1: same time that All Rays was launched, h and so
Speaker 1: we're just so appreciative of all the work that you
Speaker 1: have done. Both who you have on your show, how
Speaker 1: you ask these questions. Um, it's really I mean it's
Speaker 1: gonna we know you're you're not going anywhere, but um,
Speaker 1: we've that's deeply appreciated because actually it made a huge
Speaker 1: difference to us when we were launching. We were all
Speaker 1: reading that book was around February and we launched in
Speaker 1: April of Yeah. So the ripple effects of what you do,
Speaker 1: what al Rays says keeps going and there's so much
Speaker 1: more work to do, so much more to do. So
Speaker 1: I think we have to all be cognizant as an industry,
Speaker 1: as individuals and organizations. Uh Like Jenny said, like this
Speaker 1: is a time where people have to get like grittier, right,
Speaker 1: And if you're looking for people who have basically their
Speaker 1: entire lives done more with less, you're looking at women
Speaker 1: and people of color. So think it would be a
Speaker 1: terrible mistake to actually cut those people from your talent
Speaker 1: base and to go back to monocultures. Um. Like, I
Speaker 1: think we need really resilient folks to help us lead
Speaker 1: and manage and execute through this recession. Times are changing.
Speaker 1: Elon Musk just told employees that Twitter could go bankrupt
Speaker 1: and you've got almost the entire executive team now gone gone. Well,
Speaker 1: I mean, how are you watching this? Any any any
Speaker 1: advice for for Mr Musk. The one thing we were
Speaker 1: talking about is it was in your book that you
Speaker 1: talked about Dick Hostelo talking about they had a huge
Speaker 1: they made a huge mistake not having women at that
Speaker 1: table when they were dealing with all the issues. And
Speaker 1: here we are, how many years later, and the same
Speaker 1: thing is happening the people in the in the in
Speaker 1: the war room. I don't think there are any women
Speaker 1: around that table. So it's sort of like it's sometimes
Speaker 1: you look and you're like, we've gone nowhere, right, where
Speaker 1: is the progress we obviously needed to accelerate. But then
Speaker 1: we were also talking about the fact that when Bain
Speaker 1: Crypto Capital launched their fund with a picture of seven
Speaker 1: dudes on it, they got obliterated, right, and not just
Speaker 1: by women but by men. And everyone knew that wasn't okay.
Speaker 1: So should it have happened, No, But ten years ago
Speaker 1: I don't think they would have been obliterated. So in
Speaker 1: some ways we've made progress in the world's getting educated
Speaker 1: and it's not about altruism, right, it's about good business.
Speaker 1: But in other ways, in the Twitter warm room right now,
Speaker 1: haling Lee, Wait, you are our unicorn. Oh my god,
Speaker 1: this little sore, but were you so care? She's so
Speaker 1: cute and inside she nurtures baby. Just to thank you
Speaker 1: to you for twelve years, happy last day, and thank
Speaker 1: you for all you've done. All right, m ailing Lee,
Speaker 1: Jenny left court. Thank you both for stopping by. More
Speaker 1: of what work Tech after this break, we're talking crypto
Speaker 1: and implosion and what's next. This is Bloomberg f t
Speaker 1: X assets have been frozen by the Bahamas regulator. Bloomberg's
Speaker 1: Handimiller covers crypto for us the New The headlines keep
Speaker 1: pouring in. What's happening now? Yes, the situation keeps getting
Speaker 1: more and more complicated. It's extremely fast moving. What we
Speaker 1: do know is that Sam bankman Fried is under some
Speaker 1: serious legal scrutiny and there still is an ongoing investigation
Speaker 1: from the CFTC and the SEC. Could he face jail time? Yeah,
Speaker 1: I mean, I can't even believe I'm saying that, but
Speaker 1: it's unclear. Um, it's really gonna come down to whether
Speaker 1: he mishandled customer funds. Um. They're also looking at the
Speaker 1: relationship between f t X and allow me to research
Speaker 1: the trading firm he helped found. We're also talking about
Speaker 1: a potentially techtonic shift in the crypto landscape. What other
Speaker 1: ripple effects of this? Everybody's reeling right now. You know,
Speaker 1: the market is struggling. F t X and Sam bankman
Speaker 1: Fried had an incredible reach over the industry. Um he
Speaker 1: is invested in multiple companies, he has built out multiple companies.
Speaker 1: Uh f t X also does a lot of business
Speaker 1: with different players. So it's gonna be interesting to see
Speaker 1: which dominoes fall and how quickly. What are we hearing
Speaker 1: from the other exchanges? I mean, Brian Armstrong, the CEO
Speaker 1: coin Base, was on the show earlier this week saying basically,
Speaker 1: we looked at f t X, but there are some
Speaker 1: things that will come to light and here we are.
Speaker 1: Now what's the word from finance? Yeah, finance. I think
Speaker 1: c Z is sort of basking in a victory right now.
Speaker 1: As Sam bankman Fried put it in a tweet this morning,
Speaker 1: he said, you want so well, victory in the crypto
Speaker 1: space isn't necessarily long lived though, right, Like, how do
Speaker 1: we know? Jesse Patt was on yesterday and say, I said,
Speaker 1: we're going to see who swimming naked? Um, how do
Speaker 1: we know who's swimming naked? Yes, that is very good question. Um.
Speaker 1: And I think there's still going to be a lot
Speaker 1: to unfold here, especially what are you looking at? I'm
Speaker 1: looking at which players are being affected here? Who's on
Speaker 1: the virtue of bankruptcy? Who's getting hit hard by f
Speaker 1: tx's downfall? All right, Bloomer's had a miller. We will
Speaker 1: stay tuned to your reporting. Thank you so much for
Speaker 1: joining us. I'm Emily Chang, and this is the newly
Speaker 1: named Bloomberg Technology. This is Bloomberg Technology. I'm Emily Chang.
Speaker 1: We are live from the Vanity Fair New Establishment Summit
Speaker 1: in Los Angeles. I'm Emily Changing at Facebook headquarters in
Speaker 1: Menlo Park, California. Welcome to Bloomberg Technology. I'm Emily Chang,
Speaker 1: live from Apple Park in Coupertino, California, Apple's brand new headquarters.
Speaker 1: The smartphone has proven to be the undisputed king of
Speaker 1: Apple products and in turn revolutionized an entire ecosystem. You know,
Speaker 1: as time has gone on, the smartphone has become more
Speaker 1: important to people's lives. Fay Book is now officially a
Speaker 1: publicly traded company. The neat Deck had ruled out the
Speaker 1: red carpet for a bill reading unlike any other. Someone
Speaker 1: suggested a joint venture with Amazon, would that ever happen? Well, really,
Speaker 1: I heard about it from you. I have never heard
Speaker 1: about that. I would be interested in talking s s
Speaker 1: always anything. Anybody that involving helping small business will feel excited.
Speaker 1: A lot of people are looking at Square as an
Speaker 1: example of that. These private tech unicorns are overmout what
Speaker 1: do you think? I don't know. I'm not an economist.
Speaker 1: We have an economist on our board. Talk to him.
Speaker 1: But you've compared the company to Amazon. You've got some
Speaker 1: investors out there who think it might be more like
Speaker 1: an e Bay or just big questions about how big
Speaker 1: the right hailing market can be. How do you deliver
Speaker 1: on the Amazon? We just have to weave got We've
Speaker 1: got to execute. And when you think about what Amazon did,
Speaker 1: they went beyond the bookseller to other categories of retail.
Speaker 1: We're doing the same thing. And I think that the
Speaker 1: ones who've been on us, the investors have been on
Speaker 1: us launch are going to be happy to share. Is
Speaker 1: indicated to open right now at a hundred thirty nine
Speaker 1: dollars a share, which is more than double what you've
Speaker 1: priced at. I mean, are you at all concerned about froth?
Speaker 1: What do you think about that number and the potential
Speaker 1: that you're leaving billions of dollars on the table. That's
Speaker 1: the first time I've heard that number. Um. That is
Speaker 1: that's a you know, when we in April we raise money, um,
Speaker 1: and it was a debt financing. That price would have
Speaker 1: priced us around thirty bucks. Coming to you live from
Speaker 1: the San Francisco Bay Area, where I am sheltering in place,
Speaker 1: all of us at home in order to comply with
Speaker 1: local orders that we not leave our homes in the
Speaker 1: midst of this coronavirus outbreak in the interest of public safety.
Speaker 1: Bear with us as we do our best to bring
Speaker 1: you the news as best we can't. The power of
Speaker 1: the people online forums on Reddit, Discord and more, fueling
Speaker 1: massive market moves in game Stop, BlackBerry, A and See
Speaker 1: and more, leaving hedge funds scrambling as they lose billions.
Speaker 1: Jeff Bezos is formally stepping down as Amazon CEO, turning
Speaker 1: the reins over to cloud computing boss Andy Jase on five.
Speaker 1: That's twenty seven years to the day after Bezos Incorporated
Speaker 1: Amazon dot Com. Jeff Bezos of Blue Origin and his
Speaker 1: crew have pulled off a safe and successful launch, shuttling
Speaker 1: human beings to space for the very first time, landing
Speaker 1: without a hitch. Welcome back to Earth. How do you feel? Oh?
Speaker 1: My goodness? Wow? I mean wow, this is your first
Speaker 1: interview since landing. We all want to know the reality
Speaker 1: of seeing the Earth from above? Did it live up
Speaker 1: to the dream beyond? Honestly, I'm not talented enough to
Speaker 1: describe this in words. Out with the old and in
Speaker 1: with the Meta. Mark Zuckerberg goes all in on the metaverse,
Speaker 1: doubling down on immersive reality and rebranding the entire platform.
Speaker 1: What the serena slamb for business? What does that look like? Um?
Speaker 1: I have never been asked that question, and I've never
Speaker 1: thought about it, and I think that is such a
Speaker 1: good idea of Twitter is now officially owned by Elon Musk.
Speaker 1: The company moreover, is going to go through this completely
Speaker 1: chaotic transition where it's essentially learning how to operate from
Speaker 1: day one. Except it's already a going concern with thousands
Speaker 1: of employees. It's it's just not going to end well
Speaker 1: for him. Let's point your hand this way to have
Speaker 1: him drive. Oh, we got around and that does it.
Speaker 1: For this edition of Bloomberg Technology on Emily Chang in
Speaker 1: San Francisco. This is Bloomberg twelve years. Twelve years. That
Speaker 1: is how long I've been hosting this show, hosting the show.
Speaker 1: Thank you, guys, Thank you. There's a lot of painople here.
Speaker 1: Keep reading almost every day episodes. UM. This was my
Speaker 1: first baby, my first rocket ship, and it's time to
Speaker 1: launch the next one. Um. I'm going to be expanding
Speaker 1: our coverage and launching news shows on Bloomberg focused on
Speaker 1: the most important people and issues at the heart of tech,
Speaker 1: business and culture. And that means moving on from this
Speaker 1: daily show from My Family to a weekly show, New Family,
Speaker 1: to get more in depth, to dive deeper, answer harder questions,
Speaker 1: reinvent how we bring you these stories, and show you
Speaker 1: more size of it all. Technology has thrust us into
Speaker 1: a massive experiment in human history, and I want to
Speaker 1: know how society life, how we are changing as a result,
Speaker 1: and try to capture the site. Guys. When I came
Speaker 1: to Silicon Valley in two thousand ten, Airbnb and Uber
Speaker 1: were just starting to rise from the ashes of the
Speaker 1: financial crisis. Apple's market cap was just two fifty million dollars,
Speaker 1: Crypto barely existed, Nobody was even asking the question where
Speaker 1: are all the women? At least not out loud, And
Speaker 1: now Silicon Valley is at another inflection point. You've got
Speaker 1: mass layoffs, crypto imploding, miss and disinformation algorithms gone wild,
Speaker 1: power in the hands of a few companies and a
Speaker 1: few people, and yet the power to do so much good,
Speaker 1: so many problems, and yet the solutions could be just
Speaker 1: two people in a garage away. So thank you for
Speaker 1: helping me and our great team tell these stories. Thank
Speaker 1: you for watching, for contributing, for sending tips to the
Speaker 1: countless people and reporters who share their time and minds
Speaker 1: to join us on the show. Thank you to the
Speaker 1: viewer on Instagram who said he's watched our episodes from
Speaker 1: halfway around the world, and um to my mom who's
Speaker 1: maybe got you beat. Maybe Moving on to a new
Speaker 1: chapter at Bloomberg is something that I chose to do,
Speaker 1: but it wasn't easy. And this team is my family.
Speaker 1: From everyone you see in front of the camera and
Speaker 1: behind it, they all work so hard and I'm so
Speaker 1: grateful for it, and I gonna get through this. In
Speaker 1: twelve years, we've interviewed thousands of people, broken, countless stories,
Speaker 1: and I realized that this was my dream job. I
Speaker 1: wrote a book, I had four babies of my own
Speaker 1: who are here, and I just want you to know
Speaker 1: that every day has been an opportunity and every day
Speaker 1: has been special, and there's so much more to come.
Speaker 1: That's all from me for now. Tune into Bloomberg Technology tomorrow.
Speaker 1: Thank you by che