WEBVTT - FTX's Implosion and Twitter's Potential Bankruptcy 0:00:02.200 --> 0:00:05.560 From the heart of where innovation, money and power callive 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:30.960 Emily Chay. Welcome to a very special edition of Bloomberg Technology. 0:00:30.960 --> 0:00:34.400 I'm Emily Chang in San Francisco. We've got so much, 0:00:34.680 --> 0:00:36.880 so much to cover today. In the next hour, Crypto 0:00:36.960 --> 0:00:40.280 reeling from the f g X explosion. Sam Bankman freed 0:00:40.640 --> 0:00:45.480 apologizing after allegedly using customer funds to invest in other projects. 0:00:45.600 --> 0:00:50.200 Even the White House is monitoring this situation. Plus more 0:00:50.280 --> 0:00:53.800 of Twitter's top executives leave the company, including the head 0:00:53.800 --> 0:00:56.480 of trust and safety and Elon Musk Tell's employees at 0:00:56.480 --> 0:00:59.640 an all hands meeting that bankruptcy is not out of 0:00:59.640 --> 0:01:03.400 the question, and a not so cold war between the 0:01:03.480 --> 0:01:06.039 U S and China along with a looming recession. Just 0:01:06.160 --> 0:01:09.200 as the chip crisis was easy, a m D isn't 0:01:09.200 --> 0:01:11.800 slowing down launching a new chip as it continues to 0:01:11.840 --> 0:01:14.520 take share from Intel and a m D CEO Lisa 0:01:14.600 --> 0:01:19.880 Sue joins us right here in an exclusive interview, and 0:01:20.040 --> 0:01:22.920 the women investors of All Rays who started shaking up 0:01:22.959 --> 0:01:25.520 Silicon Valleys grow culture share their thoughts on how much 0:01:25.560 --> 0:01:29.000 progress has and hasn't been made, and how startups survived 0:01:29.400 --> 0:01:33.840 their toughest test yet. But first, as you all know, 0:01:34.000 --> 0:01:35.640 this is my last day sitting in this chair, and 0:01:35.680 --> 0:01:37.160 I have to get through the next hour, So I'm 0:01:37.200 --> 0:01:39.640 not going to get too deep right now, but I 0:01:39.640 --> 0:01:41.200 want you to know that this show is going to 0:01:41.240 --> 0:01:44.000 be special and we have a lot of news to 0:01:44.040 --> 0:01:47.240 get through. We're getting more details on the crypto blow 0:01:47.319 --> 0:01:49.280 up now. According to the Wall Street Journal, f t 0:01:49.640 --> 0:01:52.680 X lent billions of dollars worth of customer assets to 0:01:52.680 --> 0:01:56.160 pay for risky bets by its affiliated trading firm Alami. 0:01:56.200 --> 0:01:59.160 To research Bloomberg, Shinali Bossik has been covering every step 0:01:59.480 --> 0:02:03.280 of the story or Shinali, Wow, what has happened in 0:02:03.320 --> 0:02:06.240 the last forty eight hours? Where does things stand right now? Emily, 0:02:06.280 --> 0:02:08.240 just a breath taking amount of money that we are 0:02:08.280 --> 0:02:10.720 talking about here. In addition to venture capitalists having to 0:02:10.800 --> 0:02:14.880 mark down their state two zero uh sequoia really coming 0:02:14.960 --> 0:02:18.880 up front on that note and other investors likely to follow, 0:02:19.240 --> 0:02:21.080 you do have the Wall Street Journal reporting that of 0:02:21.080 --> 0:02:24.919 the sixteen billion dollars in customer assets that were on 0:02:24.960 --> 0:02:27.720 the f t X platform, more than half of the 0:02:27.720 --> 0:02:30.680 customer funds were lent to the sister company, Alameda. So 0:02:30.760 --> 0:02:33.280 obviously this is going to be a big question of discussion, 0:02:33.320 --> 0:02:35.520 a question of concern as we keep on moving along. 0:02:35.840 --> 0:02:38.440 We did see interestingly Sam bingg but Free to take 0:02:38.480 --> 0:02:42.280 to Twitter today and start to address the idea that 0:02:42.480 --> 0:02:45.200 he messed up. He said it over and over again, 0:02:45.520 --> 0:02:47.600 but that he really wanted to still try to find 0:02:47.639 --> 0:02:51.560 money to make investors, that investors clients rather whole, and 0:02:51.600 --> 0:02:54.800 that those clients would be made whole before any investors 0:02:54.840 --> 0:02:58.040 would be And again, remember this is not a bankruptcy 0:02:58.040 --> 0:03:00.240 process yet by any means, but if it were to 0:03:00.280 --> 0:03:02.240 be in a bankruptcy process, it would be much more 0:03:02.240 --> 0:03:05.000 complicated in terms of figuring out who got assets and 0:03:05.040 --> 0:03:08.160 who got them first. Now, f t X US was 0:03:08.200 --> 0:03:10.200 never part of that deal that we were talking about 0:03:10.200 --> 0:03:12.040 the last couple of days when it came to Finance 0:03:12.120 --> 0:03:14.880 potentially buying f t X dot com assets outside of 0:03:14.880 --> 0:03:17.280 the United States. But we are seeing that f t 0:03:17.520 --> 0:03:19.840 X is saying now that they're going to be potentially 0:03:19.880 --> 0:03:23.880 halting trading and withdrawals in the coming days here. Now 0:03:23.960 --> 0:03:27.880 that is very important because if trading has halted there 0:03:27.960 --> 0:03:30.160 as well, then you really have another part of the 0:03:30.200 --> 0:03:33.880 ft X empire that was very connected to the financial industry, 0:03:34.200 --> 0:03:38.120 had a different set of investors, and was also the 0:03:38.120 --> 0:03:41.840 one that really helped facilitate the bailouts of some of 0:03:41.880 --> 0:03:46.000 these other crypto firms also potentially in trouble here. So again, 0:03:46.040 --> 0:03:50.360 the story really is just beginning, even though it feels 0:03:50.440 --> 0:03:54.640 like it's been unraveling very, very drastically for the last 0:03:54.640 --> 0:03:58.160 couple of days. Son, You've got investors, very prominent investors, 0:03:58.200 --> 0:04:00.720 telling their clients that their investments and f t X 0:04:00.760 --> 0:04:05.320 are now basically worthless. How are investors responding, How are 0:04:05.360 --> 0:04:09.560 regulators responding? You know, we've spoken to a number of 0:04:09.560 --> 0:04:12.080 investors and regulators. We have to remember that there is 0:04:12.120 --> 0:04:15.640 an active investigation going on. This is the SEC, this 0:04:15.720 --> 0:04:19.320 is the Department of Justice, this is the CFTC. And 0:04:19.360 --> 0:04:23.400 what's remarkable about this emily is not very long ago, 0:04:23.640 --> 0:04:26.280 I mean really days ago, when there was not this 0:04:26.400 --> 0:04:28.440 type of trouble and f t X. You saw f 0:04:28.520 --> 0:04:30.880 t X working with regulators to try to change the 0:04:30.960 --> 0:04:33.000 rules of the game. Uh, they were working with the 0:04:33.120 --> 0:04:36.719 SEC to to advance a proposal that would really reduce 0:04:36.760 --> 0:04:39.720 a reliance on clearing houses for certain trades. Uh, and 0:04:39.760 --> 0:04:42.120 it was something that the CFTC chair could really change 0:04:42.360 --> 0:04:44.520 a broader part of the financial system if this word 0:04:44.520 --> 0:04:47.839 to go through. So to your point here, regulators are 0:04:48.080 --> 0:04:52.000 sitting here and not just investigating the circumstance circumstances at hand, 0:04:52.279 --> 0:04:54.640 the use of the client funds, which is the primary 0:04:54.680 --> 0:04:57.680 concern here, as well as what happens to the money. 0:04:57.680 --> 0:04:59.640 How are people made whole and how did you keep 0:04:59.640 --> 0:05:03.640 this from happening again when we've seen liquidity issues multiply 0:05:03.960 --> 0:05:07.800 in the cryptocurrency industry throughout the entire year. As a 0:05:07.880 --> 0:05:11.640 one crypto executive put it on Twitter today, people are 0:05:11.640 --> 0:05:14.520 asking about contagion when you think about f t X, 0:05:15.040 --> 0:05:18.160 isn't this the contagion We have been seeing it all year? 0:05:18.279 --> 0:05:21.440 And the reality is one by one, customers that are 0:05:21.520 --> 0:05:26.440 exposed to f t X are exposed, are are releasing 0:05:26.480 --> 0:05:29.680 their exposures by the millions, and you have to wonder 0:05:30.320 --> 0:05:33.560 what comes next. All right, bloombergsh Ally Bostic, thank you. 0:05:33.560 --> 0:05:36.719 We're gonna stay tuned to your reporting on this story. Meantime, 0:05:36.880 --> 0:05:39.920 Twitter owner Elon Musk emailed staff for the first time 0:05:39.920 --> 0:05:43.279 and warned of quote difficult times ahead Musk, writing that 0:05:43.360 --> 0:05:46.560 there is no way to sugarcoat the economic outlook. He 0:05:46.640 --> 0:05:49.760 also said remote work not an option anymore on that 0:05:49.839 --> 0:05:53.320 bankruptcy isn't out of the question. Meantime, the FTC says 0:05:53.320 --> 0:05:57.520 it's tracking Twitter developments with concern. Bloomberg sprat Stone, our 0:05:57.560 --> 0:06:00.880 senior executive tech editor, joining us now. I mean, in 0:06:00.920 --> 0:06:03.200 my twelve years covering tech, I can't remember a more 0:06:03.800 --> 0:06:08.480 disruptive time Twitter could go bankrupt. I mean, the news 0:06:09.000 --> 0:06:12.320 coming out of Twitter seems more cataclysmic every single day. 0:06:12.400 --> 0:06:15.680 And what has stuck out today are these resignations from 0:06:15.760 --> 0:06:20.039 key Twitter personnel, the chief security officer, the chief privacy officer, 0:06:20.440 --> 0:06:23.880 just now you l Roth, the head of trust and security, 0:06:24.400 --> 0:06:27.719 showing an absolute lack of confidence in Twitter's ability to 0:06:27.760 --> 0:06:30.880 secure user data and comply with an FDC consent decree. 0:06:31.000 --> 0:06:33.640 And I've actually heard people who's left Twitter saying, at last, 0:06:33.680 --> 0:06:35.600 yoel is still there now even you know all the 0:06:35.640 --> 0:06:37.920 person who was in charge of trust and safety is gone. 0:06:38.000 --> 0:06:41.880 The problem is Elon is conducting himself like Elon conducts himself. 0:06:41.960 --> 0:06:45.880 He's an imperial CEO, accustomed to moving very quickly, working 0:06:45.880 --> 0:06:48.760 at all hours of the night, not very accountable to 0:06:48.839 --> 0:06:51.520 his board a Twitter and SpaceX and and you know, 0:06:51.600 --> 0:06:54.680 in most cases not that interested with complying with the 0:06:54.760 --> 0:06:56.920 letter of the law. I mean, we've seen that with Twitter, 0:06:57.279 --> 0:07:00.359 with Tesla and the sec. The problem here is that 0:07:00.400 --> 0:07:04.120 the FDC has a consent decree with Twitter requiring it 0:07:04.160 --> 0:07:08.320 to document new products and how it's safeguarding customer information. 0:07:08.560 --> 0:07:11.880 And clearly executives and Twitter are not very comfortable with 0:07:11.920 --> 0:07:14.800 how Elon is conducting himself now two weeks into ownership, right, 0:07:14.840 --> 0:07:17.280 it's only been it's been days, right that he has 0:07:17.320 --> 0:07:21.200 owned this company. How do you even imagine that this 0:07:21.200 --> 0:07:24.840 plays out? So you know this this show today is 0:07:24.880 --> 0:07:28.720 about history. Right, You're almost twelve years anchoring the show. Um, 0:07:28.760 --> 0:07:31.120 so let's go back to some history. Two twelve, one 0:07:31.160 --> 0:07:33.280 year after we started the show, we did a cover 0:07:33.360 --> 0:07:35.720 story in Business Week and called Twitter the company that 0:07:35.760 --> 0:07:38.840 couldn't kill itself. And we we send that because of 0:07:38.880 --> 0:07:42.200 all the chaos internally and its inability to come up 0:07:42.200 --> 0:07:45.120 with new forms of revenue, new products, and yet there 0:07:45.200 --> 0:07:47.840 was something about the company that users just can't look 0:07:47.880 --> 0:07:50.280 away from. And that's certainly something we've seen this week 0:07:50.280 --> 0:07:54.640 with the elections, with with Elon's display user growth is up, 0:07:54.760 --> 0:07:57.560 and and maybe that's a little point of optimism that 0:07:57.600 --> 0:08:00.720 despite all of this, as long as he doesn't bleed 0:08:00.720 --> 0:08:03.119 out from shooting himself in the foot again and again, 0:08:03.440 --> 0:08:05.720 you know, maybe he can rescue Tweeter even I tweeted 0:08:05.800 --> 0:08:07.200 right before the show and I just thought, God, I 0:08:07.240 --> 0:08:10.840 hope Twitter still exists when this show is over. It's 0:08:10.960 --> 0:08:14.680 so important to so much of you know, Silicon Valley 0:08:14.680 --> 0:08:19.280 and obviously dialogue around the world. You've been covering Silicon 0:08:19.360 --> 0:08:22.360 Valley longer than I have. Eleven thousand people laid off 0:08:22.400 --> 0:08:27.080 at Meta, thousands of people laid off at Twitter, Apple, Amazon, Alphabet, 0:08:27.200 --> 0:08:30.080 everyone cutting costs and thinking how are we going to 0:08:30.120 --> 0:08:34.320 get through a recession? How does this rank compared to 0:08:34.360 --> 0:08:37.760 the financial crisis, the dot com bust? You know what, 0:08:37.920 --> 0:08:41.559 this is just how the place works in Silicon Valley. 0:08:41.760 --> 0:08:46.320 Tech is cyclical. It's happened again and again for for decades, 0:08:46.720 --> 0:08:50.280 you know, the personal computer recession, the dot com bust, 0:08:50.600 --> 0:08:53.640 the Great Recession. You know, if anything, those times might 0:08:53.640 --> 0:08:56.560 have been worse in terms of the number of layoffs. 0:08:56.600 --> 0:08:58.080 And the other thing I would point out now is 0:08:58.080 --> 0:09:01.360 that Silicon Valley has about two percent unemployment in two 0:09:01.360 --> 0:09:04.920 thousand nine. It was, so you know, the difference might 0:09:04.960 --> 0:09:07.440 be that jobs are harder to come by for for 0:09:07.520 --> 0:09:09.680 the recently laid off, I mean the other differences that 0:09:09.800 --> 0:09:12.760 were coming off a very extraordinary period during the pandemic, 0:09:13.080 --> 0:09:17.920 where you know, Twitter hired, Facebook hired employees, Amazon doubled 0:09:17.960 --> 0:09:20.960 in size. So yes, these are significant cutbacks, but it 0:09:21.040 --> 0:09:24.440 comes after a period of maybe overly optimistic growth. All right, well, 0:09:24.440 --> 0:09:26.360 we're going to be watching how your team continues to 0:09:26.400 --> 0:09:38.720 cover these stories, Bradstone, as always, thank you. Turning to 0:09:38.840 --> 0:09:42.520 chips now, chip delivery times dropped by six days in October, 0:09:42.559 --> 0:09:47.679 the most one survey showing chips supply across all major 0:09:47.760 --> 0:09:51.720 product areas now more quickly available. Let's talk about this 0:09:51.760 --> 0:09:54.080 and more with a m D CEO, Lisa Sue. Now, 0:09:54.280 --> 0:09:57.040 am D just announced an update to its server chip 0:09:57.040 --> 0:10:00.880 line up, taking another swing at rival Intel. And it's 0:10:00.880 --> 0:10:02.720 so great to see you here at Lisa in person. 0:10:03.160 --> 0:10:05.920 It's one time we did this a lot times virtually 0:10:05.960 --> 0:10:09.520 in the pandemic, and I'm really glad that you're here today. UM, 0:10:09.559 --> 0:10:11.240 I have to ask first what your take is on 0:10:11.280 --> 0:10:15.480 what's happening in the market right now. What is your outlook? Yeah, absolutely, Well, 0:10:15.520 --> 0:10:17.120 first of all, it's great to be here in person 0:10:17.200 --> 0:10:19.960 with you, and by the way, congratulations on this very 0:10:19.960 --> 0:10:22.960 special show. So we're excited to be here. Um. Look, 0:10:23.000 --> 0:10:24.920 you know, when I look at the market, I would 0:10:24.960 --> 0:10:27.760 say a couple of things. You know, the semiconductor market 0:10:27.880 --> 0:10:31.040 has been so strong over the last several years, and 0:10:31.280 --> 0:10:34.280 we've certainly been trying to ramp up production across the board. 0:10:34.840 --> 0:10:37.120 When you look at today's market, you know, there's certain 0:10:37.840 --> 0:10:40.120 portions of the market that are actually doing extremely well. 0:10:40.840 --> 0:10:43.840 Things like you know, our data center business are embedded 0:10:43.880 --> 0:10:50.000 business UM that services UM aerospace and defense, industrial, automotive, 0:10:50.120 --> 0:10:52.080 you know, these parts of the businesses. And then there 0:10:52.120 --> 0:10:54.240 are some part parts of the businesses that are you know, 0:10:54.280 --> 0:10:57.319 going through a little bit of a lower demand period 0:10:57.360 --> 0:11:01.280 and those are like you know PCs and UM consumer devices, 0:11:01.320 --> 0:11:03.679 and so we're navigating through that. But you know, again 0:11:03.679 --> 0:11:05.520 it's a very exciting day for us because we just 0:11:05.640 --> 0:11:08.480 launched our new server chips UM. So I'm so glad 0:11:08.520 --> 0:11:09.959 that we could talk to you a little bit about that. 0:11:10.320 --> 0:11:12.080 So let's talk about the new chip. How do you 0:11:12.080 --> 0:11:14.560 hope this one will change the game. Well, I have 0:11:14.640 --> 0:11:17.200 to say, you know, you know, our server road DApp 0:11:17.280 --> 0:11:19.439 has been like a five year journey. So we launched 0:11:19.480 --> 0:11:23.280 the first EPIC server line in two thou seventeen and 0:11:23.320 --> 0:11:26.320 over the last five years we've had three generations of 0:11:26.360 --> 0:11:30.720 truly leadership performance. So with our new generation, fourth generation 0:11:30.760 --> 0:11:33.640 EPIC and that we code name in GENERA, it's really 0:11:33.760 --> 0:11:35.920 game changing for the server market. And you know when 0:11:35.920 --> 0:11:40.000 I talk about things like you know, UM significantly higher performance, 0:11:40.240 --> 0:11:45.640 UM significantly better UM overall energy efficiency, significantly lower operating 0:11:45.679 --> 0:11:49.320 costs depending on which environment that you're in, and we're 0:11:49.320 --> 0:11:51.240 talking about you know, two and a half to three 0:11:51.280 --> 0:11:55.559 times the competition. So we're extremely excited with it. You've 0:11:55.559 --> 0:11:58.959 gotten a lead now over Intel. How sustainable is that lead? 0:11:59.000 --> 0:12:01.160 Because Pat Gelsinger has said, we're going to be in 0:12:01.160 --> 0:12:03.320 the lead again, and what if this is just a 0:12:03.360 --> 0:12:06.000 moment in the sun. Well, what I can say is 0:12:06.040 --> 0:12:08.320 I think hopefully the last five years has been proof. 0:12:08.320 --> 0:12:11.240 You know, you know, our goal has been to every 0:12:11.320 --> 0:12:15.360 year have a stronger and stronger roadmap to broaden how 0:12:15.400 --> 0:12:17.800 we work with our partners and customers. You know, if 0:12:17.800 --> 0:12:20.320 you look across the world at cloud data centers. You know, 0:12:20.360 --> 0:12:23.480 a m D is now the standard for cloud data centers, 0:12:23.520 --> 0:12:27.400 and it's really because of our performance and our overall 0:12:27.440 --> 0:12:30.360 efficiency and our total cost of ownership. So you know, 0:12:30.400 --> 0:12:33.360 we are not taking our our foot off the gas pedal. 0:12:33.360 --> 0:12:36.520 We're going to continue to innovate very strongly. So let's 0:12:36.559 --> 0:12:39.239 talk about Look, if we are going into a prolonged recession, 0:12:39.520 --> 0:12:42.520 how is your strategy evolving. Are you trying to cut costs? 0:12:42.559 --> 0:12:45.520 Are you going to do layoffs? Well, it's a very 0:12:45.520 --> 0:12:47.920 interesting point, Emily. You know, I think UM, a couple 0:12:47.920 --> 0:12:51.800 of things we've been working on really diversifying our business. 0:12:51.880 --> 0:12:54.200 So it's not just about you know, one product line. 0:12:54.240 --> 0:12:56.760 We actually have a broad products a set of product 0:12:56.800 --> 0:13:00.560 lines UM. As I said, data center embedded actually quite strong, 0:13:00.600 --> 0:13:03.080 and we're gaining share UM. And then on the PC 0:13:03.240 --> 0:13:05.400 market and consumer it's a little bit lower, and we're 0:13:05.480 --> 0:13:08.520 navigating through that. And you know, our roadmaps take three 0:13:08.520 --> 0:13:11.000 to five years to develop, so we are not at 0:13:11.000 --> 0:13:14.040 all backing off of our roadmap. UM, We're gonna navigate 0:13:14.040 --> 0:13:17.200 through this. We're going to be tighter on overall operat expenses, 0:13:17.240 --> 0:13:19.760 but we're also gonna UM invest in R and D 0:13:19.920 --> 0:13:22.560 so that we can keep increasing our lead. What about 0:13:22.679 --> 0:13:25.160 rising tension between the US and China, How does that 0:13:25.240 --> 0:13:27.800 change the game for you? Just as the chip crisis 0:13:27.880 --> 0:13:31.720 was starting to ease. Well, we're always you know, very uh, 0:13:31.880 --> 0:13:35.160 you know, watching the situation as it relates to the geopolitics. 0:13:35.200 --> 0:13:37.400 I would say, you know, China is an important market, 0:13:37.480 --> 0:13:41.000 but we're also very cognizant of, um, the US you 0:13:41.040 --> 0:13:43.400 know restrictions, and we're operating within those. And I would 0:13:43.440 --> 0:13:46.160 say that we've you know again navigating through you know 0:13:46.200 --> 0:13:49.360 these things. How low can PCs go? So I think 0:13:49.360 --> 0:13:53.120 there's this question, was this just a pandemic play? Well, 0:13:53.200 --> 0:13:56.960 I think PCs are extremely important in the overall ecosystem. 0:13:57.000 --> 0:13:59.680 Now there's no question, um that there was you know, 0:13:59.720 --> 0:14:01.960 a it of excess you know, sort of very higher 0:14:02.000 --> 0:14:04.760 demand over the last you know, eighteen months, two years, 0:14:05.120 --> 0:14:07.080 and now we're in a period of lower demand. But 0:14:07.160 --> 0:14:10.040 I still believe you know, the PC experience when you 0:14:10.080 --> 0:14:12.600 talk about working from home, when you're talking about working 0:14:12.600 --> 0:14:15.560 on the road, when you talk about enterprises and everything 0:14:15.559 --> 0:14:18.480 that you have to do there, when you talk about gaming, um, 0:14:18.559 --> 0:14:21.960 you know, there's definitely a very very good overall demand 0:14:21.960 --> 0:14:23.600 and we just have to work through, you know, sort 0:14:23.640 --> 0:14:27.200 of this next couple of quarters and ensure that you 0:14:27.240 --> 0:14:29.720 know that the demand supply picture gets back into balance. 0:14:29.920 --> 0:14:32.360 At the Fortune Most Powerful Woman's Summit recently, you said 0:14:32.400 --> 0:14:34.840 running a m D is like running a new company 0:14:34.880 --> 0:14:38.360 every two years. Explain that it is something like that. 0:14:39.000 --> 0:14:41.120 But you know, the way I think about it is, Look, 0:14:41.160 --> 0:14:44.920 technology is such fast paced, right if you think about 0:14:45.280 --> 0:14:47.280 UM the technology trends, and if you think about the 0:14:47.320 --> 0:14:49.320 size of our company. When I first took over as 0:14:49.400 --> 0:14:52.000 CEO UM, we were a five billion dollar company. You 0:14:52.000 --> 0:14:53.600 know this year will be a twenty three and a 0:14:53.640 --> 0:14:56.680 half billion dollar company. We have a lot more employees, 0:14:56.720 --> 0:14:58.400 we have a lot more product lines, and you know, 0:14:58.480 --> 0:15:00.880 the world is a different place. So we love it. 0:15:00.960 --> 0:15:04.080 You know, we love the dynamic nature of the business, 0:15:04.080 --> 0:15:06.520 and we also believe that that's one of our core 0:15:06.600 --> 0:15:09.120 strengths is we're able to really navigate through, you know, 0:15:09.160 --> 0:15:11.560 sort of a lot of different things. Am D shares 0:15:11.600 --> 0:15:15.600 were on a tear for so long and they have 0:15:15.720 --> 0:15:17.280 taken a hit with the rest of the market. Is 0:15:17.320 --> 0:15:20.560 that hard to watch? Does it doesn't change anything for 0:15:20.640 --> 0:15:23.960 you as you run the company? Well, we certainly believe that, 0:15:24.160 --> 0:15:26.080 you know, the right thing to do is to focus 0:15:26.120 --> 0:15:28.640 on the long term strategy. And the long term strategy 0:15:28.920 --> 0:15:32.160 is you know, product roadmaps, UM, you know, deep deep 0:15:32.160 --> 0:15:36.000 customer relationships, continuing to innovate, and you know that's where 0:15:36.040 --> 0:15:39.360 we spend our time. And of course, you know, we 0:15:39.400 --> 0:15:42.320 all want to ensure that all of our stakeholders are 0:15:42.840 --> 0:15:45.280 are happy with the progress, and so we're always you know, 0:15:45.560 --> 0:15:48.000 working on those things. And I know I've asked you 0:15:48.040 --> 0:15:50.720 this multiple times over the last several years, the state 0:15:50.760 --> 0:15:54.560 of the chip crisis. What phase are we moving into now? Well, 0:15:54.560 --> 0:15:56.840 I think you said it earlier. I think we are 0:15:56.640 --> 0:15:59.760 we have gotten over the hump of you know, sort 0:15:59.760 --> 0:16:01.800 of the the chip shortage as it was called. I 0:16:01.840 --> 0:16:04.640 know you've asked me that several times over the last 0:16:04.640 --> 0:16:08.760 couple of years, the question of the day and two 0:16:08.840 --> 0:16:11.280 years now. And I think what I've said each time 0:16:11.520 --> 0:16:14.760 is that the semiconductor industry knows how to do this. 0:16:14.920 --> 0:16:18.280 We know how to put on enough capacity to satisfy demand. Um. 0:16:18.280 --> 0:16:21.400 We have seen um, you know, a much better supply 0:16:21.600 --> 0:16:24.920 demand balance of now and certainly over the last couple 0:16:24.960 --> 0:16:27.360 of quarters. And I think we are, you know, for 0:16:27.400 --> 0:16:30.360 the most part meeting supply. UM that that is a 0:16:30.360 --> 0:16:32.560 meeting demand that's out there. Now. There are certain still 0:16:32.640 --> 0:16:35.120 pockets of shortages and those will be worked through, you 0:16:35.120 --> 0:16:38.040 know as well. So, so what does the chip industry 0:16:38.120 --> 0:16:42.280 look like through a recession? How does the chip industry 0:16:42.400 --> 0:16:46.040 in your view whether this we have certainly were very 0:16:46.080 --> 0:16:49.000 familiar with these types of cycles and what it means is, 0:16:49.080 --> 0:16:51.440 you know, we have periods of build phase, which is 0:16:51.480 --> 0:16:54.400 what the last eighteen twenty four months were, and then 0:16:54.400 --> 0:16:58.400 we have you know, a periods where there's less capacity 0:16:58.480 --> 0:17:00.840 being brought on, and you know, again we know how 0:17:00.840 --> 0:17:03.840 to manage through these things. Perhaps the most important thing 0:17:03.880 --> 0:17:06.680 though is to focus on, you know, what are the 0:17:06.760 --> 0:17:09.680 secular growth drivers that are going to continue to be important. 0:17:10.080 --> 0:17:13.639 That's why data centers are so important, um, energy efficiency 0:17:13.680 --> 0:17:18.240 becomes so important, business transformation for enterprises are so important. 0:17:18.280 --> 0:17:20.120 And then you know things like you know, gaming and 0:17:20.200 --> 0:17:23.360 you are also uh, you know, secular growth drivers. So 0:17:23.520 --> 0:17:26.400 you know, I'm very optimistic about the long term and 0:17:26.440 --> 0:17:28.639 we're you know, very well prepared to manage through the 0:17:28.640 --> 0:17:30.680 short terms. At a time of m and a is 0:17:30.760 --> 0:17:33.680 at a time of consolidation. Well, first of all, we're 0:17:33.760 --> 0:17:37.320 extremely excited with how well are recent m and A 0:17:37.400 --> 0:17:39.480 has done. So, you know, we close this is links 0:17:39.520 --> 0:17:42.919 acquisition in February. They've now been part of the you know, 0:17:42.960 --> 0:17:44.920 the am D family for the last you know, seven 0:17:44.960 --> 0:17:48.439 eight months. It's gone fantastically well. UM. The business is 0:17:48.480 --> 0:17:52.880 fantastics or above our acquisition case. We also acquired UM 0:17:52.920 --> 0:17:55.639 a company called Pensando, which is a specialist in you know, 0:17:55.720 --> 0:17:58.960 networking technologies as well. And so you know, m and 0:17:59.040 --> 0:18:01.400 A has been very good for us. But I would say, 0:18:01.480 --> 0:18:05.560 you know, running a very strong organic business is also 0:18:06.080 --> 0:18:08.280 UM sort of front and center in what we do. 0:18:08.440 --> 0:18:11.600 And d CEO Lisa Sue will have more to come together, 0:18:12.040 --> 0:18:14.760 I hope, UM. But I really appreciate you coming to 0:18:14.800 --> 0:18:17.080 talk to us today in San Francisco. Thank you so much, 0:18:17.520 --> 0:18:22.439 so wonderful to see you in Congratulations again, thank you. Alright, 0:18:22.440 --> 0:18:25.080 we've got more of Bloomberg Technology after this quick break. 0:18:25.160 --> 0:18:40.679 This is Bloomberg Meta's first major job cuts might not 0:18:40.720 --> 0:18:43.440 cut it. The Facebook parent laid off eleven thousand workers 0:18:43.440 --> 0:18:45.359 this week, but a let's say that won't be nearly 0:18:45.480 --> 0:18:47.800 enough to get the company back to being as profitable 0:18:47.840 --> 0:18:52.120 as it was two years ago, revenue still falling, spending 0:18:52.480 --> 0:18:56.679 has ballooned, and the money saved on job cuts just 0:18:56.760 --> 0:18:58.639 to drop in a very large bucket, and it was 0:18:58.680 --> 0:19:02.760 the largest single own art auction in history. In just 0:19:02.880 --> 0:19:05.040 two and a half hours, Christie's presided over the sale 0:19:05.080 --> 0:19:07.680 of sixty artworks for an unprecedented one and a half 0:19:07.680 --> 0:19:11.080 billion dollars. They came from the collection of late Microsoft 0:19:11.080 --> 0:19:14.880 co founder Paul Allen, among them works from Lucien Freud, Goos, 0:19:14.960 --> 0:19:27.919 Dave Clint, and Paul says On. Okay, well, welcome back 0:19:27.920 --> 0:19:30.760 to Bloomer Technology. I'm Emily Chang in San Francisco. Now 0:19:30.880 --> 0:19:34.480 to the wave of tech layoffs, cryptocarnage, and Twitter tearing 0:19:34.520 --> 0:19:38.240 on the possibility of bankruptcy. According to Elon Musk, what 0:19:38.280 --> 0:19:41.360 does it all mean for startups that only just survived 0:19:41.359 --> 0:19:43.480 a pandemic? I want to bring in Alien lead founder 0:19:43.480 --> 0:19:46.440 and managing partner of Cowboy Ventures now who coined the 0:19:46.560 --> 0:19:49.399 term unicorn almost ten years ago, and Jenny left Court, 0:19:49.400 --> 0:19:52.520 general partner at Freestyle VC, both of whom have been 0:19:52.600 --> 0:19:55.439 very very active in helping women get more access in 0:19:55.440 --> 0:19:57.840 Silicon Valley. So first, thank you both for being here today. 0:19:58.520 --> 0:20:01.440 Thank you for having us on a special day. Um, 0:20:01.440 --> 0:20:05.040 it's truly an honor for both. Kiddy guys are so 0:20:05.080 --> 0:20:07.920 sweet and it's it's it's it's a crazy newsday. It's 0:20:07.960 --> 0:20:11.840 a crazy time for Silicon Valley. You've both been investing 0:20:11.840 --> 0:20:16.680 a long time. What's your read on all of this? Sorry? Um, 0:20:17.119 --> 0:20:19.360 I mean this is the correction that we've all been 0:20:19.359 --> 0:20:22.359 talking about for years that there's just no way right 0:20:22.440 --> 0:20:25.720 that you know, economies are cyclical. Tech has been cyclical, 0:20:26.400 --> 0:20:28.640 and we've had a crazy bowl market for a really 0:20:28.680 --> 0:20:33.520 long time and to the point where people only were 0:20:33.640 --> 0:20:35.560 it lasted so long that people thought that this is 0:20:35.560 --> 0:20:39.080 how companies traded forever. But it was such an anomaly. 0:20:39.200 --> 0:20:42.040 So it's it's quite unfortunate, but it kind of had 0:20:42.080 --> 0:20:44.080 to happen. So how bad does it get or how 0:20:44.119 --> 0:20:46.480 bad are you preparing for it to get? I think 0:20:46.520 --> 0:20:48.440 we're at the tip of the iceberg. I think it's 0:20:48.440 --> 0:20:50.760 going to get a lot worse. It's we're just starting 0:20:50.760 --> 0:20:55.600 with the reckoning of like years of going fast and loose. Uh. 0:20:55.640 --> 0:20:58.040 And so I think now you see Stripe, you see 0:20:58.040 --> 0:21:01.080 all the really good profitable company US making layoffs. There 0:21:01.160 --> 0:21:04.480 isn't a company in town that is not cutting. And 0:21:04.520 --> 0:21:06.560 I think you're gonna say a lot of startups have 0:21:06.680 --> 0:21:09.679 to wind down. So how does this impact startups? I mean, 0:21:09.680 --> 0:21:11.560 there's so much focus on the big names, but there 0:21:11.560 --> 0:21:15.320 are all of these companies out there, the unicorns, the 0:21:15.400 --> 0:21:19.960 newly anointed unicorns that are struggling. Yeah, and I think 0:21:20.000 --> 0:21:22.800 the it's not going to happen in one fell swoop. 0:21:22.800 --> 0:21:25.119 It's not going to be like yesterday. I was right 0:21:25.160 --> 0:21:27.040 because a lot of companies has a lot of money 0:21:27.080 --> 0:21:29.320 from private markets over the past three years and they're 0:21:29.359 --> 0:21:33.280 kind of living off what they raised and they're cutting. 0:21:33.720 --> 0:21:36.160