Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From Mahard where innovation, money and power.
Speaker 3: Collie in Silicon Vallet NBN.
Speaker 4: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 5: I met Lovelow in San Francisco. Caroline hides off today.
Speaker 5: This is Bloomberg Technology coming up. Shean rethinks an IPO
Speaker 5: in New York with its sites now set on London
Speaker 5: as the fast fashion company faces hurdles in the US. Plus,
Speaker 5: Nvidia's seventy million dollars supercomputer is hobbled in Florida by
Speaker 5: laws preventing top talent from other setting foot in the state.
Speaker 5: We'll bring you the reporting from the ground. And Instagram
Speaker 5: competitor Lapse raises thirty million dollars from investors as it
Speaker 5: looks to provide an alternative social platform to gen z users.
Speaker 5: We'll discuss that and so much more throughout the hour.
Speaker 5: Good morning, this is what your markets look like. We're
Speaker 5: coming out of the tail end of earning season for
Speaker 5: the technology sector and headfirst into a week where economic
Speaker 5: data is front and center. There's been chopping trading on
Speaker 5: a Nasdaq one hundred. We're currently up two tens percent
Speaker 5: yields have been creeping higher. Why we've pared back our
Speaker 5: expectations for what the FED will or won't do with
Speaker 5: a rate cart. You look at US tenure yield four
Speaker 5: point two eight percent, been around four point two nine percent.
Speaker 5: One landmark moment Bitcoin just below fifty seven thousand US
Speaker 5: dollars per token right now. Significant because that took the
Speaker 5: global market for cryptocurrencies to two trillion dollars in market
Speaker 5: cap total. I'm going to show you that chart later
Speaker 5: on in the hour the crescendo of the week twenty
Speaker 5: four hours time when we get PC data. Why because
Speaker 5: I think will inform what the market at least thinks
Speaker 5: is going to do. And of course higher rates we know.
Speaker 5: The story is how that impacts the tech sector. Single
Speaker 5: names we're watching I talked about earning season Zoom up
Speaker 5: four point seven percent, have been much higher, a relatively
Speaker 5: strong outlook for EPs. But they did a share buyback
Speaker 5: one point five billion dollars, a sweetener that investors like
Speaker 5: in Vidia has hit pause on its most recent rallies,
Speaker 5: soft to two tens of one percent. We're about to
Speaker 5: bring you a key story of what's going on with
Speaker 5: Nvidia in Florida and then Google is rebounding. It's up
Speaker 5: three tens and one percent. But there are concerns about
Speaker 5: Gemini and the image generator side of Gemini, and we
Speaker 5: are going to go to one analyst who has put
Speaker 5: those concerns right at the center of their most recent note.
Speaker 5: That is some names that are already trading. What about
Speaker 5: one that we're all waiting on with hurdles affecting its
Speaker 5: potential IPO in the United States, Fast fashion company she
Speaker 5: In is considering switching its listing to overseas. The company,
Speaker 5: which was founded in China and is now headquartered in Singapore,
Speaker 5: is in the early stages of exploring a listing in London.
Speaker 5: As the likelihood of the US SEC approving and IPO dim.
Speaker 5: Sheen is still working on its application for the US,
Speaker 5: which remains its preferred location. That's all according to Bloomberg
Speaker 5: sources and reporting in here with more is Bloomberg's sweater
Speaker 5: Gopinath Sweta A good morning from San Francisco. Good afternoon
Speaker 5: to you in London. This could be big for London's market.
Speaker 6: This could be huge for London's market. The London IPO
Speaker 6: market has been particularly hard hit. The IPO market globally
Speaker 6: has slowed, of course over the past eighteen months or so,
Speaker 6: but the drop in London listings has been really stark.
Speaker 6: Just about a billion, just under a billion in fact,
Speaker 6: was raised all through twenty twenty three here in London.
Speaker 6: So a deal of this size, a listing like Shean
Speaker 6: could be the boost this market has desperately been waiting for.
Speaker 5: Can London even support an IPO of this size? We
Speaker 5: kind of know what the numbers are right that she
Speaker 5: and would be looking at in terms of volume rays valuation.
Speaker 5: I go back to what happened with our in September.
Speaker 5: You know, you have to ask yourself, is the investor
Speaker 5: base there to back a London IPO.
Speaker 6: That is the billion or billions of dollars worth of
Speaker 6: That's the billion dollar question actually, because that's that's the
Speaker 6: obstacle that people say is holding London back. There just
Speaker 6: isn't investor appetite here, particularly for sort of fast growing
Speaker 6: young companies that have unprone business models. Sheen is doing
Speaker 6: very well by most accounts, but there are problems around
Speaker 6: it's so saying that questions about sort of the conternate
Speaker 6: users where it comes from, sort of ethical est concerns
Speaker 6: around that, and also just concerns about how it should
Speaker 6: be valued. They're sort of varying estimates, estimates as for
Speaker 6: all private companies, but more broadly, there's just questions about
Speaker 6: how London fund managers value companies. This is the idea
Speaker 6: that they don't value growth as highly as their US
Speaker 6: counterparts do, which is why we've seen a lot of
Speaker 6: British bond tech companies, including arm as you mentioned, choosing
Speaker 6: New York over London.
Speaker 5: All Right, it is the IPO to watch this year,
Speaker 5: irrespective of where it ends up happening. Bloomberg, Sweat to
Speaker 5: go Op and have great to catch up with you.
Speaker 5: Thank you now. Staying with news out of the UK,
Speaker 5: Sony's PlayStation London, best known for the SingStar series as
Speaker 5: well as multiple virtual reality games, will shut down. Sony's
Speaker 5: also laying off around nine hundred employees, accounting for about
Speaker 5: eight percent of its video game division. The company said
Speaker 5: that the layoffs will affect game makers across three of
Speaker 5: its most successful subsidiaries, Insomniac, the studio behind Spider Man,
Speaker 5: Naughty Dog behind the Last of Us, and Gorilla behind Horizon.
Speaker 5: The news comes after the company reported earlier this month
Speaker 5: that it would be cutting projects. Projection sorry for its
Speaker 5: PlayStation five console. Head of PlayStation Studios Herman Holst said
Speaker 5: in a note to staff Tuesday that the company has
Speaker 5: also decided to cancel several games that were in development. Okay,
Speaker 5: let's turn to none other than in Video. It is
Speaker 5: the stock to watch most days of the week. Florida
Speaker 5: Governor Rondasis initially predicted that a super computer bankrolled by
Speaker 5: billionaire co founder of the chip Giant Chris Malakowski at
Speaker 5: the University of Florida would be a magnet for AI talent.
Speaker 5: But almost four years later, DeSantis's staunch anti China stance
Speaker 5: is preventing some of the most highly skilled AI researchers
Speaker 5: from ever setting foot in the state. Joining us with
Speaker 5: the story is Bloomberg's Michael Smith, and what a story.
Speaker 5: It is one of the most read on all Bloomberg
Speaker 5: platforms this morning. Just explain what's happening here. There is
Speaker 5: a supercomputer in Florida. It includes in Vidia backing and
Speaker 5: Nvidia tech. But that computer is not getting the computer
Speaker 5: scientists it needs to support it.
Speaker 1: Yeah, that's basically it. Basically.
Speaker 7: Last year, Governor DeSantis, as part of his sort of
Speaker 7: campaign against Undo influence by China and the state of
Speaker 7: Florida and in the country backed and heavily supported a
Speaker 7: law that basically the legislature pass that basically prohibits state
Speaker 7: universities in Florida from hiring graduate students PhD students from China,
Speaker 7: Irran and five other countries of concern as they call them.
Speaker 7: They just basically cannot bring them over to study and
Speaker 7: perform research in any field, including AI. So that's really
Speaker 7: put a hamper on what the University of Florida does.
Speaker 7: And Nvidia comes in because a few years ago they
Speaker 7: built what's called the Hypergator AI. It's the world's fastest
Speaker 7: supercomputer on a college campus. And Chris Malakowski, who's an
Speaker 7: alumni alumni he went to the University of Florida, basically
Speaker 7: paid for it in conjunction with Navidia and the university
Speaker 7: kicking some money. So they got this amazing seventy million
Speaker 7: dollar computer, but they have a shortage of top talent
Speaker 7: researchers to take advantage of it. So that's really putting
Speaker 7: a hamper on what they want to do in Florida
Speaker 7: with AI.
Speaker 5: Mike I just point out for our audience that in
Speaker 5: Nvidia declined to comment for your story, but I did
Speaker 5: speak two weeks ago with Nvidia's CEO, Jensen Huang, and
Speaker 5: on the issue of China, this is what he had
Speaker 5: to say.
Speaker 8: Have listen, we have to comply with American policies and
Speaker 8: whatever the rules and regulations are, and the laws.
Speaker 1: Are well number one, comply with that.
Speaker 8: Our goal or in the United States would love to
Speaker 8: see us be a successful country in one of the
Speaker 8: pillars of national security of successful industries.
Speaker 5: So the Nvidia side of the story is pretty clear, right,
Speaker 5: we comply with the rules and regulations of the country
Speaker 5: we're from, and they want America to be the most
Speaker 5: competitive source of AI talent and operation go to run
Speaker 5: the CENSUSUS side of this. In Florida's side of this,
Speaker 5: what is the concern that they have in letting in
Speaker 5: talent from overseas working in the field of artificial intelligence.
Speaker 1: Well, Desantas has made this a big talking point.
Speaker 7: If you will, uh he believes that or he says
Speaker 7: that there's you know, you have to worry about Chinese
Speaker 7: interests purchasing land.
Speaker 1: For example, uh or or or you know, or getting.
Speaker 7: Access to technology via universities because they might be basically
Speaker 7: spying on behalf of the Chinese military, the government, or
Speaker 7: even Chinese industry and stealing secrets.
Speaker 1: Et cetera.
Speaker 7: So in the case of and the law that he
Speaker 7: passed covered all those areas, but a big focus is
Speaker 7: the university side of it. So he they basically passed
Speaker 7: this law saying, you know, major restrictions on bringing in
Speaker 7: talent researchers from China, and he's really latching onto something
Speaker 7: that's happened in the United States and other countries. For example,
Speaker 7: the Trump administration issued a proclamation that allowed that ordered
Speaker 7: the State Department to reject the visa of any aspiring
Speaker 7: PhD student from China and several other countries who were
Speaker 7: suspected of having any ties with the military or the
Speaker 7: government in China. And they've been doing that, and the
Speaker 7: Biden administration has continued that. I mean, they rejected one
Speaker 7: year that we know almost two thousand students were not
Speaker 7: allowed to get visas to come and be PhD researchers
Speaker 7: in the technology fields. But the Florida law is probably
Speaker 7: the most draconian the way because it absolutely puts an
Speaker 7: end to it makes it impossible for professors to bring
Speaker 7: in talent from China and Iran. That's another key market
Speaker 7: for top AI talent in the world. Iranian PhD students.
Speaker 7: Last year they just the University of Florida, that's the
Speaker 7: flagship university where the hypergata is actually based, brought one
Speaker 7: thousand students from the seven countries of concern, principally China
Speaker 7: that are listening to this law that are now banned.
Speaker 1: So this year. Last year they.
Speaker 7: Brought in a thousand this year zero. If you talk
Speaker 7: to professors, they say that this is really hampering their
Speaker 7: ability to do cutting edge research.
Speaker 5: Bloombers Michael Smith with a very important piece of reporting,
Speaker 5: very well read on all bloombo platforms this morning. Thank you. Okay,
Speaker 5: time for some news and talking tech. First off, Ali
Speaker 5: Barber leading the largest single financing round for a Chinese
Speaker 5: AI startup. The one billion dollar funding round is the
Speaker 5: latest in a string of sizable investments that suggest the
Speaker 5: e Commace firm is deploying capital in the hunt for growth.
Speaker 5: Founded last March, moonshot Ai is among the better known
Speaker 5: startups developing generative AI in China, hoping to eventually match
Speaker 5: the likes of open Ai and Google Plus. Exodigo, a
Speaker 5: startup that uses artificial intelligence and sensors to map the underground,
Speaker 5: closed a one hundred and five million dollar funding round
Speaker 5: led by Greenfield Partners and ZEV Ventures. Established in June
Speaker 5: twenty twenty one. The company makes underground maps used by
Speaker 5: some of the world's largest energy, utility, transportation, and construction companies,
Speaker 5: and intense I has raised sixty four million dollars in
Speaker 5: a funding round led by light Speed Venture Partners to
Speaker 5: develop AI that can detect and help fix potential hazards
Speaker 5: in the workplace. The company says it can help save
Speaker 5: lives and reduce economic losses from millions of accidents every year.
Speaker 5: The New York based startup's latest financing takes its total
Speaker 5: funding to about ninety million dollars to date. Okay, let's
Speaker 5: stick with AI the big story. Google plans to bring
Speaker 5: back its AI feature that generates images of people in
Speaker 5: quote the next couple of weeks. That, according to the
Speaker 5: company's top AI executive, Google's Google Gemini's image generator has
Speaker 5: been paused since last week due to criticism over inaccurate
Speaker 5: historical depictions of race. A recent note from Mellis Research
Speaker 5: says that quote the issue for the stock is not
Speaker 5: the debate itself. It is the perception of truth behind
Speaker 5: the brand. Here to explain that quote is the man
Speaker 5: behind the research, Ben writes, his managing director and head
Speaker 5: of technology research at Melius. I spotted this across the
Speaker 5: Bloomberg terminal. It hit my inbox. And what you're referring to,
Speaker 5: I think is the debate that's happening on social media,
Speaker 5: all kinds of people weighing in about the risk of
Speaker 5: Google getting it wrong with Gemini. Is that right?
Speaker 3: Yeah?
Speaker 9: I think that you want to make sure they don't
Speaker 9: have a bud light moment, and we're not sure yet.
Speaker 9: I don't want to weigh in on the merits of
Speaker 9: what they did or the debate.
Speaker 3: It's just real simple.
Speaker 1: When you alienate a.
Speaker 9: Part of the population and they believe that you may
Speaker 9: not be a source of truth, that's not good for
Speaker 9: business in their business.
Speaker 3: And they did that, and they need to fix it, and.
Speaker 9: They need to start getting these launches tighter too. You
Speaker 9: can't put out a product that's not ready and shows ideology.
Speaker 3: So it's tough.
Speaker 9: We believe we're at a once in a lifetime crossroads
Speaker 9: here where search is going to hand off to AI
Speaker 9: features and if they're not a source of trust, that's
Speaker 9: a big deal and we're surprised investors or even taking it.
Speaker 3: You know this.
Speaker 5: Calmly, and when you cover this stock, I'm assuming that
Speaker 5: historically you focused on it as an advertising business. We're
Speaker 5: going to show Google's response to what's happening on your
Speaker 5: screen right now. But how have you had to adapt
Speaker 5: your modeling an analysis of this company given the kind
Speaker 5: of shift over in focus to artificial intelligence.
Speaker 9: Well, we listen, We do the best we can. The
Speaker 9: issue there's not any guidance, of course from the company,
Speaker 9: which is their style, but the issue here, you know,
Speaker 9: you've seen from Gartner that they believe twenty five percent
Speaker 9: of traditional search is going away in a few years
Speaker 9: to be cannibalized by AI search. Not really sure how
Speaker 9: it got there. What we do know is search should
Speaker 9: change due to AI. Google has already basically told you
Speaker 9: that with their search generative experience where it's kind of
Speaker 9: a hybrid. We think that there's upstarts such as Perplexity
Speaker 9: AI and whatever open AI is going to do that
Speaker 9: are going to get a good look from a lot
Speaker 9: of younger consumers that may change their habits as we.
Speaker 3: Enter in AI world.
Speaker 5: One individual who is paying close attention to the Gemini
Speaker 5: situation is Elon Musk. He's posted a lot on his
Speaker 5: platform X in the last forty eight hours. This is
Speaker 5: the first line of something that caught my eye. Given
Speaker 5: that GEMINIAI will be at the heart of every Google
Speaker 5: product and YouTube, this is extremely allarmy. It kind of
Speaker 5: speaks to the point that you just made, Ben, how
Speaker 5: big a risk fact is it to Alphabet, the parent
Speaker 5: of Google, that Elon Musk clearly is focused on this
Speaker 5: and is keeping it in the public consciousness for the
Speaker 5: time being.
Speaker 3: Well, it's not good.
Speaker 9: And Elon as is well chronicled on why he could
Speaker 9: be upset as well with what happened when the model
Speaker 9: asked questions about him versus some unsavory You know, gentlemen,
Speaker 9: the issue here is Elon does have a big microphone.
Speaker 9: And like I said, I mean again, I don't want
Speaker 9: to weigh in on the merits of the debate or
Speaker 9: what was potentially done, but you you know, they're in
Speaker 9: a business of trust of information and that has been
Speaker 9: rattled and I think that Elon has a big microphone,
Speaker 9: and obviously with his platform of X which he controls.
Speaker 9: So you know, we've been keeping track of a lot
Speaker 9: of the fodder on it and we'll see if that
Speaker 9: has an impact. But the average consumer doesn't know the
Speaker 9: differ between you know, a lot of the different products too,
Speaker 9: so they see lack of truth in one thing, they
Speaker 9: might think there's lack of truth in another thing.
Speaker 5: All right, Melia's Research Managing Director and head of Technology Research,
Speaker 5: Ben Wrights. This and Google. We was rebounding today. Now
Speaker 5: coming up from the show, GitHub making co pilot enterprise
Speaker 5: and AI offering that helps streamline code navigation and comprehension
Speaker 5: and available for just thirty nine dollars per user per month.
Speaker 5: We speak to GitHub ceo coming up next. We're going
Speaker 5: to take a short break. We'll be right back. This
Speaker 5: is Bloomberg Technology, all right. Today gethub and AI powered
Speaker 5: Developer platform is making GitHub Copilot Enterprise available to every
Speaker 5: organization for just thirty nine dollars per user per month.
Speaker 5: The AI offering is per personalized for each organization, making
Speaker 5: it possible to streamline code navigation and comprehension. Here with
Speaker 5: more GitHub ceo Thomas Donkey and Thomas good morning to you.
Speaker 5: I guess if you're a novice coder like me, or
Speaker 5: you're a veteran. This is a useful application, and I
Speaker 5: guess you're targeting those two very different end markets.
Speaker 3: Yeah, absolutely No.
Speaker 4: Ed what we have seen in the last years that
Speaker 4: companies no longer just look at digital transformation, they're actually
Speaker 4: looking into the AI transformation and get a Core.
Speaker 3: Pilot started it all by giving.
Speaker 4: Developers AI based order suggestions, not order completion in the editor,
Speaker 4: and with Corpolate, enterprises can now be customized for all
Speaker 4: the internal knowledge of an organization, the code based Imagine
Speaker 4: you now you're a new developer at Bloomberg TV.
Speaker 3: It's your first day, and you can just ask corpilot.
Speaker 4: Holl things I don't have Bloomberg all the instant intutional
Speaker 4: knowledge at your fingertips.
Speaker 5: A part of this in some of the similar tools
Speaker 5: I've seen, is kind of the predictive nature. Right, You're right,
Speaker 5: a line of code and the rest is auto completed.
Speaker 5: What is the performance and competence level of your technology
Speaker 5: vis a v a veteran coder who could write it themselves.
Speaker 3: You know, it actually depends on what you're doing yourself.
Speaker 4: You see a lot of developers are learning to use
Speaker 4: Core Pilot while typing code. You know, you figure out
Speaker 4: when you write a couple of characters in.
Speaker 3: Your editor that if you if you do it in.
Speaker 4: A certain way, you get a better suggestion, you get
Speaker 4: a better answer. And so developers increase their proficiency level
Speaker 4: as they're using core Pilot. We see that they're getting
Speaker 4: more productive, you know, up to fifty five percent in
Speaker 4: case studies that we have blended NBSC developers actually be measurable,
Speaker 4: more more fulfilled, more happy.
Speaker 5: Thomas Microsoft, You your parent company, was pretty stoked about
Speaker 5: the base version of co Pilot. Do you think thirty
Speaker 5: nine dollars a month will will see the enterprise version
Speaker 5: gain traction?
Speaker 3: Absolutely?
Speaker 4: You know, the attraction that we have seen over the
Speaker 4: last year has been phenomenal. We have over fifty thousand
Speaker 4: organizations already on board to copilot, more than one point
Speaker 4: three million paid users, and we see a lot of
Speaker 4: excitement from all kinds of industries. It's no longer just
Speaker 4: the cool startups and the tech companies. It's it's you know,
Speaker 4: pharmaceutical companies, automotive companies, lots of financial services institution, the
Speaker 4: global system, and the greaters like Accentia, and so we
Speaker 4: see tremendous excitement there. We have run the preview of
Speaker 4: Coporate Enterprise for the last three months and receive feedback
Speaker 4: from companies like Pigma Shopping fire Fellows telling us that
Speaker 4: the collaboration is getting so much better if coplat knows
Speaker 4: about what's happening within the company.
Speaker 5: Bloomberg reported earlier this month that Apple is looking to
Speaker 5: see something very similar with x code, you know, a
Speaker 5: very similar tool. What do you make of that?
Speaker 6: You know?
Speaker 5: Clearly this is becoming a battleground the use of generative
Speaker 5: AI within the writing of code.
Speaker 4: You know, I think as a developer, this is the
Speaker 4: most exciting era that I have seen over the last
Speaker 4: thirty years, where all these companies, including Microsoft and get
Speaker 4: up are working to make develop us more productive, to
Speaker 4: have them focus on the things they love doing and
Speaker 4: have AI help them with the things that they don't
Speaker 4: love to do. Right, this is exciting for developers to
Speaker 4: work load. The amount of code that develops have to
Speaker 4: manage today is so big that we really need to
Speaker 4: bring the effort.
Speaker 3: Down of doing.
Speaker 4: All this work, maintaining all this legacy code, code that
Speaker 4: lasts back you know, until the nineteen sixties with Cobal
Speaker 4: and for to one and other languages that are still
Speaker 4: running in our production system.
Speaker 3: So it's really exciting.
Speaker 4: You don't see all the innovation, and we hope we
Speaker 4: stay at the.
Speaker 3: Forefront of this.
Speaker 5: It's going to make hackathons interesting. Gehub CEO Thomas steine
Speaker 5: Key get to catch up with you. Thank you for
Speaker 5: your sign Now coming up, Canadate introduces an online safety law.
Speaker 5: It's the whole social media. Companies responsible for harmful content
Speaker 5: will bring you those deeds. Next, this is Bloomberg. Welcome
Speaker 5: back to Bloomberg Technology, Ed Ludlow Here in San Francisco.
Speaker 5: You can see behind me Microsoft down around half a
Speaker 5: percentage point, but that does make it the biggest points
Speaker 5: drag on the Nasdaq one hundred. A lot of reporting
Speaker 5: in recent a lot of reporting for the last twelve
Speaker 5: months about Microsoft's efforts in AI, but this one story
Speaker 5: seems to be relevant. Microsoft's investment into AI startup Mistrel
Speaker 5: is facing scrutiny in the EU, A day after the
Speaker 5: company announced a strategic partnership that includes making the startup's
Speaker 5: latest AI models available to customers of Microsoft's Azure Cloud.
Speaker 5: I want to go out to London and Bloomberg's Mark Bergen.
Speaker 5: We know very clearly the relationship between Microsoft and open Ai.
Speaker 5: So now they're making a relationship with Mistral, and very
Speaker 5: quickly the EU wants to look at it. What do we.
Speaker 10: Know, Yeah, this is effectively what we know.
Speaker 2: I mean, we know that the relations to the numbers
Speaker 2: are very different.
Speaker 9: Right.
Speaker 10: So Microsoft has put it up to about thirteen billion
Speaker 10: into open ai, largest financial backer, largest partner for a
Speaker 10: number of years since is twenty nineteen. The Mistral partnership
Speaker 10: includes from Microsoft's and they've told this a fifteen million
Speaker 10: dollar investment, so I think actually fifteen million euro sorry,
Speaker 10: so pretty small, certainly relative to their share and open Ai.
Speaker 2: This is for both sides, you know. For Mistrel, this
Speaker 2: makes them the.
Speaker 10: Second company after open Ai to have their language models
Speaker 10: available for customers on Microsoft's Azure cloud. And so this
Speaker 10: is for them, you know, they've been there French so
Speaker 10: far they've been well pretty relegated, I say, to Europe.
Speaker 10: But this certainly gives them a much bigger potential to
Speaker 10: have a global reach. And for Microsoft, they can go
Speaker 10: out to regulators and say, look, we are not just
Speaker 10: tied to open Ai. We have a partnership with this
Speaker 10: French and European Championship that is using open source, which
Speaker 10: is one of the things that the Microsoft has talked
Speaker 10: a lot about champion recently.
Speaker 5: We had EU Competition Commissioner Margareta invest there here in
Speaker 5: SF a few weeks ago, and when I sat down
Speaker 5: with her, she explained, we're basically going to look at
Speaker 5: the entire industry for AI and understand what's happening. And
Speaker 5: then I think back to how do things normally go
Speaker 5: in Europe? They look at things all the time. I
Speaker 5: think our understanding is that the commission got a copy
Speaker 5: of the agreement between the two parties, miss Strau and Microsoft.
Speaker 5: What happens next, you know, do they face a serious
Speaker 5: probe or a problem?
Speaker 10: A certainly it's probably more pressure on Microsoft's and right
Speaker 10: they're facing a lot of they're facing a prober and
Speaker 10: their own partnership with open Ai. They're sort of the
Speaker 10: poster child for what has happened in the past two years.
Speaker 10: Is this relationship between these big tech companies that have
Speaker 10: in Microsoft, Google, Amazon, We've seeing Salesforce and Video Intel
Speaker 10: and make these pretty large, substantial investments in the generative
Speaker 10: AI companies. On the other side, the flip side that
Speaker 10: comes with sort of a strings attached where they're going
Speaker 10: to be using. In this case, Mistrel is using Microsoft's cloud.
Speaker 10: Open AI is using Microsoft's cloud. Google's investments are going
Speaker 10: back and using their cloud, and I think that's sort
Speaker 10: of that's certainly what regulators have been talking about is
Speaker 10: unpacking those relationships.
Speaker 2: And I think, you know, going forward, Mustrell.
Speaker 10: Is in a really interesting position because they are and
Speaker 10: have been this champion in France making the argument that
Speaker 10: Europe needs a strong open A player, and so I
Speaker 10: think for a lot of in Europe, I think scrutinizing
Speaker 10: a company like Maestrol won't be the same as going
Speaker 10: after some of these big tech companies from the US.
Speaker 5: Right Indice monk Bergen out of London, thank you very much. Meanwhile,
Speaker 5: in Canada, Prime Minister Justin Trudeau's government introduced an online
Speaker 5: safety law, joining European countries in trying to compel internet
Speaker 5: companies to actively regulate and remove harmful content. With us
Speaker 5: to discuss is actually Casavan managing director of the International
Speaker 5: Association of Privacy Professionals AI Governance Center. We've been talking
Speaker 5: about this in recent weeks. It is happening all over
Speaker 5: the world. In the US, we're in an election cycle
Speaker 5: where we're worried about the moderation of content online. First
Speaker 5: of all, your reaction to what Canada has done and
Speaker 5: how effective you think it will be.
Speaker 11: Yeah, I think it's another in a series, as you said,
Speaker 11: of countries that are really thinking about the implications of
Speaker 11: online harms, especially for children. So we've seen this play
Speaker 11: out in the US context recently with the conversations related
Speaker 11: to Coosa and Copper, and as you mentioned, really matching
Speaker 11: what's happening in the European context. I think it's a
Speaker 11: positive step forward. These were commitments that were made a
Speaker 11: long time ago by the Trudeau government and so really
Speaker 11: happy to see that this joins other online bills both internationally,
Speaker 11: but then also to match the Digital Charter Implementation Act
Speaker 11: in Canada.
Speaker 5: The Internet is the Internet, it is everywhere, it is global,
Speaker 5: it's now in space, and every day we're talking about
Speaker 5: a different country. At some point, do you think that
Speaker 5: everyone should just get together and have a common set
Speaker 5: of rules or is that a naive position to take.
Speaker 3: I don't think so.
Speaker 11: I think that's actually exactly the question that the play
Speaker 11: right now by a lot of international organizations like the
Speaker 11: g seven, like the OECD, like the World Economic Forum,
Speaker 11: like the UN are really thinking about their position and
Speaker 11: conveners of countries. How do we think about these digital
Speaker 11: implications and rules for guardrails for those digital services in
Speaker 11: a combined way. One of the challenges, I think is
Speaker 11: the different trade offs and values that you have between
Speaker 11: different nations, but you also have things like data transfer
Speaker 11: issues when you're thinking about more of the national implications,
Speaker 11: and so how all of this is actually going to
Speaker 11: play out in an international space I think.
Speaker 1: Remains to be seen.
Speaker 5: Actually for the platforms of the tech companies, there is
Speaker 5: a policy consideration and then there's a technology consideration. Is
Speaker 5: there any one social media platform or company that you
Speaker 5: think is doing a good job of their own volition
Speaker 5: to moderate content.
Speaker 11: We are a policy neutral organization, so I won't speak
Speaker 11: to one organization over the other. But I think that
Speaker 11: we can start to see some best practices that are
Speaker 11: emerging in different types of use cases, where we're thinking
Speaker 11: again about rules around children's safety, making sure that there
Speaker 11: are certain types of parental controls that are in place,
Speaker 11: making sure that we're even seeing where there's alerts that
Speaker 11: are being provided with the amount of time that a
Speaker 11: child's been online, or anybody has been online giving you
Speaker 11: alerts to you as an individual directly. So I think
Speaker 11: these are some of the emerging trends that we're seeing,
Speaker 11: and they're coming out from a variety of different companies.
Speaker 11: And it's not to say that that then makes one
Speaker 11: company more proficient in that space over the other. I
Speaker 11: think the whole community is really learning together, both policy
Speaker 11: makers and industry players that have these research capacities within
Speaker 11: their organizations.
Speaker 5: Ashley Cassavan the iapp AI Governance Center. Great to have
Speaker 5: your time, Thank you so much. Now coming up, we'll
Speaker 5: speak with the new VC firm Pari Passuventure Partners, just
Speaker 5: coming out of Stealth. Managing partner Julia Guddish Kriega joins us. Next,
Speaker 5: we'll also let's stick with AI. Why not everyday AI
Speaker 5: all the time? Here are two names that we touch
Speaker 5: on every so often. SoundHound AI and Big Bear AI
Speaker 5: both up big time twenty three percent. For Big Bear,
Speaker 5: I'm looking on the Bloomberg terminal, I'm looking at the
Speaker 5: news wires. Big Bear has its AGM today. I doubt
Speaker 5: that is the causal link of what's driving the stock higher.
Speaker 5: And SoundHound is among the most discussed on stock twits
Speaker 5: and other Reddit forums. But these names have behave like
Speaker 5: meme stocks as well as being caught up in the
Speaker 5: kind of hype cycle we've seen the AI related names
Speaker 5: and equity markets for two big movers this Tuesday. We'll
Speaker 5: be right back. This is bloom of technology. Okay, quick update.
Speaker 5: The global crypso total market cap is now at two
Speaker 5: trillion dollars, driven basically by the rally in bitcoin Bitcoin
Speaker 5: surge around twelve percent already in the last seven days
Speaker 5: or so is trading near that high level of December
Speaker 5: twenty twenty one. But the main point is if you
Speaker 5: look right in the far right hand side of your screen,
Speaker 5: two trillion dollars of total market cap for all digital tokens,
Speaker 5: as tracked by www dot coin, marketcap dot com. What fun.
Speaker 5: All right, Let's stick with these assets and zero in
Speaker 5: on n ft SO. It's went from being touted as
Speaker 5: the cutting edge of the digital frontier to frankly the
Speaker 5: punchline for the most recent cryptobus. But suddenly the staging
Speaker 5: and unlikely comeback joining me on set is bloombog. Hannah Miller,
Speaker 5: you write with such fun about this, but it's true.
Speaker 5: You know, we kind of went from all the craze
Speaker 5: crazy dollar values to some memes and some jokes about
Speaker 5: people that had bought in. What does the data tell
Speaker 5: you now?
Speaker 12: Yeah, so the big question here is can NFTs ride
Speaker 12: the crypto comeback? You know, can they match bitcoins price rise?
Speaker 12: And what we're seeing here is that, you know, there's
Speaker 12: an overall upward trend in terms of total volume for
Speaker 12: NFT sales, but it's been a little bumpy. So there
Speaker 12: are these questions about what NFTs are good for, and
Speaker 12: startup founders are doubling down on gaming, finance and art
Speaker 12: as the main areas that we can use NFTs in.
Speaker 5: We just showed that chart. Alice the director, bring back
Speaker 5: the chart because it's astonishing what happened in December. You
Speaker 5: kind of had like a weird twenty twenty three quiet summer,
Speaker 5: and then December the market becomes alive again.
Speaker 2: Yeah.
Speaker 12: So we know that there was a lot of optimism
Speaker 12: over the expected approval of the Bitcoin ETF which did
Speaker 12: happen in January. And there are these NFT like objects
Speaker 12: called ordinals that are based on the Bitcoin blockchain. We
Speaker 12: saw huge, huge sales for ordinals during the fall as
Speaker 12: people were getting really revved up about bitcoin. So we
Speaker 12: have seen this optimism about bitcoin, this excitement about the
Speaker 12: ETF bleed over into the NFT market just really quick.
Speaker 5: Gaming is a big part of the story. Helped me
Speaker 5: explain that one.
Speaker 12: Yeah, so a lot of startups, including Yuga Labs, the
Speaker 12: creator of the board Ape Yacht Club NFT collection, are
Speaker 12: doubling down on gaming. They see this as a way
Speaker 12: to bring mainstream audiences into crypto, into NFTs and create
Speaker 12: games that are fun to play but also have blockchain.
Speaker 2: In the background.
Speaker 5: Blumbo's Hannah Miller top top Reporting. Thank you very much. Right,
Speaker 5: let's get to today's VC spotlight and bring in a
Speaker 5: firm that's just coming out as Stealth Parry Passu Venture Partners,
Speaker 5: which brands itself as a founder led and backed early
Speaker 5: stage venture firm investing at the intersection of tech and retail,
Speaker 5: SaaS and consumer tech. It's invested in nineteen companies to date,
Speaker 5: which check sizes ranging from one hundred thousand dollars to
Speaker 5: over three million dollars per company. Managing partner Julia Gudish
Speaker 5: Krieger joins me now from New York. Good morning to you, Julia,
Speaker 5: this is an interesting concept. We all the time we
Speaker 5: have startup founders on the show that have come out stealth.
Speaker 5: They kind of work behind the scenes for a year,
Speaker 5: raise money discreetly, and then say this is what we do.
Speaker 5: You're a venture firm coming out of stealth, why so discreet.
Speaker 13: So what we're launching today is an app called Perry Pursue,
Speaker 13: which is a member's only investor network that allows founders
Speaker 13: and operators and a credit tech enthusiasts to back leading
Speaker 13: startups within SaaS you know, as you mentioned e commerce, tech,
Speaker 13: consumer tech, but really alongside leading global venture capital farms.
Speaker 13: And so for us as founders backing founders, we know
Speaker 13: it takes a village, and we know that to get
Speaker 13: a company to the scale that you need to succeed
Speaker 13: and to exit, that village is super charged by having,
Speaker 13: you know, operators that have been in the trenches themselves,
Speaker 13: that have created themselves, that know how to roll up
Speaker 13: their sleeves and support. That's the village that we want
Speaker 13: our founders to have, and we're launching Perry Pursue to
Speaker 13: create the world's most powerful network of founders, support and
Speaker 13: unlock access to highly competitive venture capital deals, but for
Speaker 13: operators that can put in as little as ten.
Speaker 5: K, well, well, you say it takes a village, but
Speaker 5: there's an element of exclusivity to it because it's members only.
Speaker 5: Could you explain that part to me?
Speaker 13: Yes, And so the members only piece is really because
Speaker 13: we want to make sure we're supercharging the value out
Speaker 13: on cap tables and so focusing first on letting on
Speaker 13: founders operators that are VP level enough, people that can
Speaker 13: really add a tremendous amount of value. Because if we're
Speaker 13: writing a million dollar check into a company, and let's
Speaker 13: say it's twenty people behind the scenes that are writing
Speaker 13: checks from ten K checks of two million, you know,
Speaker 13: sometimes historically we want those people to be able to
Speaker 13: be highly value add we want those people to be
Speaker 13: able to have a network for an introduction, if a
Speaker 13: company wants to speak to a brand, right, if a
Speaker 13: company wants to navigate the right equity package for a
Speaker 13: certain higher right. And I think that village being operators
Speaker 13: themselves ends up being tremendously impactful for the success of
Speaker 13: these companies.
Speaker 5: A kind of phenomenon I guess that we've covered on
Speaker 5: the show of the last twelve months is the appetite
Speaker 5: of the everyday investor, let's call them retail investor to
Speaker 5: get particularly into growth stage companies like SpaceX and open Ai. Right,
Speaker 5: there was suddenly a turnaround in what is normally in
Speaker 5: a liquid market. And I wonder if through Parry Passu,
Speaker 5: you think you'll see the same sort of engagement at
Speaker 5: the early stage where people that traditionally just cannot or
Speaker 5: won't invest in startups through venture funds now can.
Speaker 3: Yeah.
Speaker 13: I think part of the bottleneck is if you want
Speaker 13: to invest in a venture fund, typically it's a two
Speaker 13: fifty k minimum check, even if you do have access right,
Speaker 13: and so a lot of the founders and operators that
Speaker 13: are still building who'se you know, cash is more sitting
Speaker 13: in the form of equity, you know, for that future win,
Speaker 13: they're not able to participate in that mechanism. And so
Speaker 13: Perry Pursue is really opening the doors to allow those
Speaker 13: operators to be able to invest in a really accessible
Speaker 13: access point, but building a highly curated ecosystem.
Speaker 5: I introed you saying you're going to invest in the
Speaker 5: intersection of basically everything. But I wonder, is there one
Speaker 5: main area that you're really excited about. We just have
Speaker 5: thirty seconds.
Speaker 13: Sure, so I would say we have a pretty unfair
Speaker 13: advantage in terms of e commerce SaaS across the partnership.
Speaker 13: We have lived many lives in that ecosystem. My two
Speaker 13: partners sold the largest Shopify agency in that space. So
Speaker 13: you think about having access to hundreds of brand CEOs
Speaker 13: and the e commerce sex selling into it, that's what
Speaker 13: you want on your cap table. But I've spent the
Speaker 13: better part of two decades in both the venture and
Speaker 13: founder ecosystem alongside my partners as well, and so the
Speaker 13: deep relationships that you can only forge over that amount
Speaker 13: of time or what give us access to some of
Speaker 13: the most highly competitive deals in venture.
Speaker 5: All right, Perry passuventjupon is managing partner Julia GUDISKRUGA. Great
Speaker 5: to have you on the program. Thank you for your
Speaker 5: time lapse. The latest Instagram competitors raised thirty million dollars
Speaker 5: in its series A funding round. The platform allows users
Speaker 5: to take photos with a distinctly vintage feel that cannot
Speaker 5: be seen for a few hours until they develop. These
Speaker 5: new funds allow the friends focused photo sharing app to
Speaker 5: expand engineering and technical teams and implement community led product updates.
Speaker 5: Continuing to iterate on the user experience of lighted to
Speaker 5: say that co founder Dan Silberton joins me. Now, so
Speaker 5: this is like a very interesting concept. You don't just
Speaker 5: take a photo and use basically a filter, right that
Speaker 5: gives it a vintage feel. Your platform then makes the
Speaker 5: user wait a number of hours to replicate the film
Speaker 5: development process, explain it.
Speaker 3: That's exactly right.
Speaker 14: And one of the things that makes laps with different
Speaker 14: from the way that you take photos on either your
Speaker 14: native camera or any other app today is that we
Speaker 14: really closely mimic not just an aesthetic, but also experience
Speaker 14: the feeling of using either as spotal camera or film camera.
Speaker 14: And we really find that not just in terms of
Speaker 14: actually that the way the photos look, but actually the
Speaker 14: ability to keep you in the moment because often when
Speaker 14: you take a photo, you're doing something really exciting that
Speaker 14: you want to live as fully as you can. Our
Speaker 14: users really appreciate that feeling, other than other country social
Speaker 14: media which really suck them in.
Speaker 5: Let's think about your business. You have a good runway
Speaker 5: now because you raise thirty million dollars, but is this
Speaker 5: going to be an ad based platform or a subscription
Speaker 5: based platform.
Speaker 14: So it's quite early to say or too early to stay.
Speaker 14: At the moment, we have early hypotheses that we will
Speaker 14: not monetize through ads, but right now we're focused on
Speaker 14: just building the best possible user experience and scaling that
Speaker 14: to as many users as we can. What we've seen
Speaker 14: with the traditional social platforms is that monetization tends to
Speaker 14: come a lot later in their life side. And with
Speaker 14: these new investors that we've brought on, they've all invested
Speaker 14: in the incumbent social platforms that previously started and seen
Speaker 14: that journey, and so they're fully behind us in terms
Speaker 14: of understanding that monetization necessarily comes a lot later.
Speaker 5: I'm really interested in in lapses growth. Dan, you know,
Speaker 5: are you seeing engagement through iOS or Android? Geographically? Where
Speaker 5: do you think you're going to be strong?
Speaker 3: Good question.
Speaker 14: So today the app is only on iOS. We're not
Speaker 14: on Android yet. That will come in the future, but
Speaker 14: today the focus is very much iOS. We're very strong
Speaker 14: in the US, so most of our user in the US,
Speaker 14: but we also still have some in the UK and
Speaker 14: in Canada as well. But for us, very much to focus,
Speaker 14: like I said, is in the US, and we see
Speaker 14: a very strong bias towards gen z and female users,
Speaker 14: which tend to be the early adoptor cohorts for these
Speaker 14: new social platforms, which is really encouraging to see that
Speaker 14: those are the users that are organically using the platform.
Speaker 5: I want to go to who you think you're competing
Speaker 5: with us talking with Bloomberg technology? Is Jackie Lopez about this?
Speaker 5: You're making the user weight. I'm assuming the technology doesn't
Speaker 5: require you to wait, You're just doing it as a
Speaker 5: feature that puts you on a collision course with who
Speaker 5: Instagram Snap.
Speaker 3: Exactly.
Speaker 14: And then also actually the users native camera as well,
Speaker 14: we actually see because the cameras the app rather opens
Speaker 14: to camera. We actually see ourselves very much first as
Speaker 14: a camera app, because we believe that if we were
Speaker 14: able to own the top of funnel content capture for users,
Speaker 14: then all of the other things that can come off
Speaker 14: the back of that, like the sharing, the journaling, the
Speaker 14: kind of curating and the highlights, all of that is
Speaker 14: downstream from the capture. So we're really focused on providing
Speaker 14: the best possible capture experience for users and to actually
Speaker 14: one of the best or one of the biggest competitors
Speaker 14: to us is the users native camera on their phone.
Speaker 5: All right, laps co founded Dan Silverton, hot off a
Speaker 5: series a round thirty million dollars. Thank you for your time.
Speaker 5: That does it for this edition of Bloomberg Technology. We
Speaker 5: won't make you wait. Check out podcasts. It will be
Speaker 5: online soon on the terminal Bloomberg platforms, Apple, iHeart and
Speaker 5: of course on Spotify. Brace yourselves. There's a big week
Speaker 5: of economic data and it's going to impact these markets.
Speaker 5: Tune in. This is Bloomberg Technology.