WEBVTT - Rivian and VW's Partnership and Social Media Disinformation 0:00:01.280 --> 0:00:05.120 We're from Marhart where Innovation, money and power Collie in 0:00:05.240 --> 0:00:06.720 Silicon Vallet NBN. 0:00:07.040 --> 0:00:11.600 This is Bloomberg Technology with Caroline Hyde and Ed Lovedlove. 0:00:25.360 --> 0:00:28.920 I med Lodlow in San Francisco. Caroline hides at Bloomberg invest. 0:00:29.000 --> 0:00:32.360 But this is Bloomberg Technology coming up. Full ev coverage 0:00:32.400 --> 0:00:37.080 ahead as Rivian and VW forge a five billion dollar partnership. 0:00:37.360 --> 0:00:39.880 Plus the Supreme Court clears the way for the White 0:00:39.960 --> 0:00:43.920 House communicating freely with social media companies to seek the 0:00:44.000 --> 0:00:48.519 removal of what officials see as misinformation. And we go 0:00:48.600 --> 0:00:52.080 live to our Bloomberg invest summit, where heavyweights across the 0:00:52.120 --> 0:00:58.240 financial industry break down the most pressing issues facing investors right. 0:00:58.080 --> 0:00:58.560 Here, right now. 0:00:58.600 --> 0:01:01.800 Let's get right to our story, and that is a 0:01:01.880 --> 0:01:07.160 deal between Rivian Automotive and Volkswagen. The shares really taking 0:01:07.200 --> 0:01:12.039 off in after hours. They were even higher on Tuesday night. Rivian, 0:01:12.520 --> 0:01:15.559 as it stands, is trading at its highest level since February. 0:01:15.840 --> 0:01:18.080 If it closes at this level, it will be the 0:01:18.120 --> 0:01:20.280 biggest gain one day on record. 0:01:20.040 --> 0:01:20.840 Although I'd caution. 0:01:20.959 --> 0:01:24.440 Following the IPO in November twenty twenty one, we did 0:01:24.480 --> 0:01:26.960 see swings in excess of fifty percent, and it did 0:01:27.000 --> 0:01:29.600 not close near those levels. This is a company that 0:01:29.640 --> 0:01:32.360 I've covered very closely for years. Have to be honest 0:01:32.400 --> 0:01:35.399 that I didn't see this one coming. Basically, in the 0:01:35.440 --> 0:01:40.000 first instance, Volkswagen will invest one billion dollars into Rivian 0:01:40.080 --> 0:01:43.440 in the form of a convertible unsecured or unstructured note 0:01:43.600 --> 0:01:46.399 due December one of this year, and then commits to 0:01:46.480 --> 0:01:50.200 investing one billion dollars in twenty twenty five one billion 0:01:50.200 --> 0:01:52.120 dollars in twenty twenty six, but we don't know where 0:01:52.120 --> 0:01:54.040 this share price will be at that time. Of Rivian 0:01:54.120 --> 0:01:58.280 right in return, they form a JV, but Volkswagen gets 0:01:58.320 --> 0:02:01.920 access to Rivian's technology, both software and some elements of 0:02:01.960 --> 0:02:05.200 the dry train or power train. This is a big 0:02:05.240 --> 0:02:08.240 one for the EV industry. Let's get into detail with 0:02:08.360 --> 0:02:12.280 Stephanie vauders Street. Stephanie is the director of Industry Insights 0:02:12.280 --> 0:02:16.560 at Coxauto Motive, a quick disfamer. Cox Enterprise, which is 0:02:16.560 --> 0:02:20.160 the parent company of Coxhau's Motive, is an investor in Rivian, 0:02:20.400 --> 0:02:23.360 and Sandy Schwartz, CEO of the Cox Family Office, a 0:02:23.440 --> 0:02:25.920 member of the Rivian board of directors. But we have 0:02:26.000 --> 0:02:30.400 Stephanie here for her expertise on this company, these companies, 0:02:30.680 --> 0:02:33.640 and expertise on this industry. So let's start with the 0:02:33.639 --> 0:02:37.959 basic Stephanie, your reaction to this deal well, and I think. 0:02:38.000 --> 0:02:40.880 You hit it when you said this was an unexpected 0:02:41.280 --> 0:02:43.799 announcement and it's making ways for the industry, and I 0:02:43.840 --> 0:02:47.400 think it's huge. It's a breakthrough moment for Rivian. As 0:02:47.480 --> 0:02:51.000 you know, we've been following Rivian also, and although they've 0:02:51.000 --> 0:02:54.360 made some really good progress in the market with their products, 0:02:54.400 --> 0:02:58.520 with their customer experience, you know, being becoming profitable has 0:02:58.560 --> 0:03:00.839 been a big issue, and so this investment is huge. 0:03:00.880 --> 0:03:03.960 It's going to help them really become get on that 0:03:04.040 --> 0:03:06.280 road to profitability, especially as they're trying to launch the 0:03:06.320 --> 0:03:08.320 n R two, which is a very critical vehicle for 0:03:08.400 --> 0:03:12.359 them in terms of affordability in the marketplace and kind 0:03:12.360 --> 0:03:14.320 of in that segment where there's more volume. So I 0:03:14.320 --> 0:03:16.959 think this is a huge moment and I think for 0:03:17.120 --> 0:03:20.840 VW as well. Right having access to that cutting edge technology, 0:03:21.240 --> 0:03:23.520 and I think the opportunities for a global expansion for 0:03:23.600 --> 0:03:27.800 both companies is really really going to be a positive 0:03:27.840 --> 0:03:28.240 for both. 0:03:29.280 --> 0:03:31.240 When the news broke last night, I took a few 0:03:31.240 --> 0:03:34.040 phone calls and What was so interesting is very quickly 0:03:34.600 --> 0:03:37.840 a few folks close to Rivian and at Rivian and 0:03:37.920 --> 0:03:41.760 elsewhere in the industry would point out to me Volkswagen's 0:03:41.800 --> 0:03:45.320 software strategy has not gone that well. They kind of 0:03:45.360 --> 0:03:48.240 formed carry AD, the unit and the carry AD platform. 0:03:48.720 --> 0:03:52.000 I'm told they face some major issues. How much do 0:03:52.040 --> 0:03:54.400 you think this is sort of Volkswagen reacting to that 0:03:54.560 --> 0:03:59.040 versus actually pretty much an acknowledgment that Rivian is good 0:03:59.040 --> 0:03:59.760 at software. 0:04:02.160 --> 0:04:04.600 Yeah, I think it's I think it's both what Volkswagen's 0:04:05.240 --> 0:04:08.760 you know, acknowledging that Rivine has his cutting into technology 0:04:08.880 --> 0:04:10.800 is going to really help them to scale. And I 0:04:10.880 --> 0:04:13.400 even think about broader, like if you think about the 0:04:13.520 --> 0:04:17.320 Chinese outmakers and just kind of with the penetration that 0:04:17.360 --> 0:04:20.120 they've had and the technology that they've had. So I 0:04:20.120 --> 0:04:23.440 think this is going to really help VW not only 0:04:23.480 --> 0:04:26.039 in the North American market, but globally as well. So 0:04:26.120 --> 0:04:28.479 I think they really saw that this is something that's 0:04:28.520 --> 0:04:31.039 really going to help their brand and really scale, help 0:04:31.080 --> 0:04:33.160 them scale faster and more efficiently. 0:04:34.279 --> 0:04:37.520 I have to be honest with you, Stephanie, Rivian's track 0:04:37.600 --> 0:04:41.200 record in joint ventures is not good. You know, I've 0:04:41.240 --> 0:04:44.560 been covering this company since the moment that RJA was 0:04:44.560 --> 0:04:47.240 on stage at the LA Auto Show and revealed to 0:04:47.279 --> 0:04:49.200 the world that he had to pick up an suv. 0:04:50.000 --> 0:04:53.080 And within you know, three or four years after that, 0:04:53.600 --> 0:04:56.360 the Ford JV had been and gone. Ford invested five 0:04:56.440 --> 0:04:58.640 hundred million in Rivian and then they plan to build 0:04:58.640 --> 0:05:01.279 a Lincoln together. They scrapped it. They plan to build 0:05:01.560 --> 0:05:04.560 a joint venture EV together, they scrapped it. The Mercedes 0:05:04.640 --> 0:05:08.960 relationship on commercial vans lasted three months. How much of 0:05:08.960 --> 0:05:11.840 a cautionarytail is that for Volkswagen. 0:05:12.240 --> 0:05:12.320 No. 0:05:12.440 --> 0:05:14.400 I definitely think they need to be cautious, especially in 0:05:14.400 --> 0:05:17.120 it's two distinct companies, right, and they need to constantly 0:05:17.160 --> 0:05:19.800 make sure that their strategic goals are aligned. So I 0:05:19.800 --> 0:05:21.520 think to your point, it's going to be you know, 0:05:21.520 --> 0:05:23.240 it's going to be a long bumpy road, but I 0:05:23.240 --> 0:05:25.080 think they're going to have to be very focused on 0:05:25.120 --> 0:05:28.680 making sure they're aligned and kind of what you just 0:05:29.200 --> 0:05:31.359 mentioned about some of the failures in the past. So 0:05:31.400 --> 0:05:33.760 I think it's definitely something a risk, right that they 0:05:33.760 --> 0:05:36.839 need to clo closely follow and make sure that they're aligned. 0:05:38.080 --> 0:05:41.240 You and I spoke very recently about market share, so 0:05:41.440 --> 0:05:43.400 Rivian is going to come to market in twenty twenty 0:05:43.480 --> 0:05:46.400 six with R two and that probably will be a 0:05:46.440 --> 0:05:50.360 competitor for existing models like the Model Why. But at 0:05:50.360 --> 0:05:55.080 the same time, Tesla is seeding some market share in 0:05:55.120 --> 0:05:58.200 North America and other markets, there's more models join the market. 0:05:58.839 --> 0:06:01.680 How are you tracking that and how do you see 0:06:01.720 --> 0:06:02.239 that going? 0:06:03.360 --> 0:06:06.360 Yeah, I definitely see like all about product right, customers 0:06:06.400 --> 0:06:10.240 like new product, and with Rivian having the R two 0:06:10.440 --> 0:06:13.640 R three adding more vehicles into the marketplace, I think 0:06:13.640 --> 0:06:15.880 that's going to really in terms of like Tesla not 0:06:15.920 --> 0:06:19.440 having anything other than recently the cyber truck and no 0:06:19.760 --> 0:06:23.600 definitive timeline for the more vehicle, I think Tesla definitely 0:06:23.600 --> 0:06:26.800 has more and more competition, and not only with Rivi 0:06:26.960 --> 0:06:29.560 and VW but other makes as well. So I definitely 0:06:29.600 --> 0:06:32.719 think Tesla is really going to need to get some 0:06:32.760 --> 0:06:35.479 product into the market to maintain that share that they've 0:06:35.520 --> 0:06:36.960 had for many, many years. 0:06:37.400 --> 0:06:39.640 I've got a stat for you for the twelve months 0:06:39.640 --> 0:06:43.880 through May, Tesla sold six hundred and eighteen thousand electric 0:06:43.960 --> 0:06:48.279 vehicles in the United States. All of the other manufacturers 0:06:48.360 --> 0:06:53.280 combined sold ABV five hundred and ninety seven thousand, so 0:06:53.320 --> 0:06:54.400 at some point, I. 0:06:54.360 --> 0:06:56.120 Think we expect that to cross, right. 0:06:57.440 --> 0:07:01.120 But the question it raises is one that Scarringe has 0:07:01.240 --> 0:07:05.160 argued with me about over many years. He says that 0:07:05.200 --> 0:07:08.560 this isn't an issue of interest rates or necessarily or 0:07:08.920 --> 0:07:13.160 tepid consumer appetite towards EBS. Generally, he argues, we need 0:07:13.200 --> 0:07:15.680 more models. The more models we have on the market, 0:07:16.000 --> 0:07:17.400 the better the market will be. 0:07:17.520 --> 0:07:18.960 Do you share that thesis? 0:07:19.600 --> 0:07:22.560 Yeah, I think we need more models, but more affordable markets. Right, 0:07:22.560 --> 0:07:25.120 if we want mass adoption, we need to have more 0:07:25.120 --> 0:07:28.760 affordable models. Price is the top barrier for consumer adoption, 0:07:29.360 --> 0:07:31.960 and so as we have more and more affordable markets 0:07:32.080 --> 0:07:34.320 our models in the marketplace, that's going to help with adoption. 0:07:34.520 --> 0:07:37.280 So I think I agree with that more models, but 0:07:37.320 --> 0:07:39.800 more affordable models is going to be critical. 0:07:41.520 --> 0:07:44.280 Cost your eye to the future. What happens with Ribby 0:07:44.360 --> 0:07:45.920 and Stephanie. 0:07:46.120 --> 0:07:48.760 I'm betting on them. I think they have a lot 0:07:48.800 --> 0:07:51.160 of good brand equity in the marketplace. I think the 0:07:51.240 --> 0:07:55.800 VW partnership is really a lot of great potential, and 0:07:55.920 --> 0:08:00.120 I think their collaboration can really evolve this whole connected up, 0:08:00.280 --> 0:08:03.800 devined vehicle technology, and so I think I think it's promising, 0:08:04.160 --> 0:08:06.480 but like being just mentioned, I think they just need 0:08:06.480 --> 0:08:09.040 to be careful that their strategic goals are aligned in 0:08:09.080 --> 0:08:11.160 their lockstep in. 0:08:11.120 --> 0:08:14.840 True definitely about as Stephanie, about as Stretty of cocksurces motive. 0:08:15.040 --> 0:08:18.720 I just appreciate your insight, not just to Rivian VW, 0:08:18.760 --> 0:08:21.680 which I think caught us by surprise, but the industry 0:08:21.720 --> 0:08:22.480 at large as well. 0:08:22.560 --> 0:08:23.360 Thank you so much. 0:08:23.760 --> 0:08:26.160 Okay, let's turn to some breaking news that's come out 0:08:26.200 --> 0:08:29.880 in the last hour. The Supreme Court cleared the Biden 0:08:29.920 --> 0:08:34.400 administration to communicate freely with social media companies in an 0:08:34.400 --> 0:08:39.280 election year, which rules that bolsters the government's ability to 0:08:39.360 --> 0:08:42.800 seek removal of what official seat is misinformation. I want 0:08:42.800 --> 0:08:46.240 to bring in Bloombergs Katie Lions out of Washington, DC. Kaylee, 0:08:46.280 --> 0:08:49.120 you know I saw the headline cross and I've just 0:08:49.200 --> 0:08:51.640 read the interest to you, and I'm trying to understand 0:08:52.160 --> 0:08:54.400 the mechanics and bigger picture of this story. 0:08:54.440 --> 0:08:58.200 Explain it to me, Well, technically. 0:08:57.720 --> 0:08:59.920 This is a win for the White House. You're exactly why, 0:09:00.080 --> 0:09:01.640 and that it leaves the door open for them to 0:09:01.640 --> 0:09:05.040 communicate freely with social media companies about content that they 0:09:05.080 --> 0:09:08.280 see as misinformation that could potentially be harmful to the public. 0:09:08.320 --> 0:09:12.480 This case all started with questions around the administration's activity 0:09:12.480 --> 0:09:15.360 with social media companies and trying to control information related 0:09:15.400 --> 0:09:18.200 to the COVID nineteen pandemic and the twenty twenty election, 0:09:18.280 --> 0:09:20.520 and the plaintiffs in this case essentially argued that they 0:09:20.520 --> 0:09:23.960 overstepped the constitutional bounds of the right to free speech. 0:09:24.040 --> 0:09:26.800 The thing is, in this ruling, which was six to three, 0:09:27.120 --> 0:09:30.240 the majority opinion, written by Justice Amy Coney Barrett, doesn't 0:09:30.240 --> 0:09:34.040 actually talk about the merits of the case. It's about standing. 0:09:34.040 --> 0:09:37.200 They essentially argue that the plaintiffs, which included two states 0:09:37.200 --> 0:09:39.760 and a handful of residents within those states, did not 0:09:39.920 --> 0:09:42.240 have the standing to be bringing this case because they 0:09:42.240 --> 0:09:46.240 couldn't demonstrate that they were directly injured by the defendants, which, 0:09:46.280 --> 0:09:49.040 of course, in this case is is the Biden administration. 0:09:49.120 --> 0:09:51.080 So this is kind of similar to the myth ofpristone 0:09:51.160 --> 0:09:53.640 ruling we got earlier this month, where they didn't actually 0:09:53.679 --> 0:09:57.480 decide necessarily definitively on access to that abortion pill. It 0:09:57.520 --> 0:10:00.880 was just that the individuals, the people that brought the case, 0:10:00.960 --> 0:10:03.000 did not have standing, which is why they ruled in 0:10:03.000 --> 0:10:05.480 favor of keeping access to it, so it leaves the 0:10:05.480 --> 0:10:07.760 door open ed for this question to still be raised 0:10:07.760 --> 0:10:10.640 again in the future, technically by plaintiffs who may have 0:10:11.120 --> 0:10:12.439 more firm ground to stand on. 0:10:13.480 --> 0:10:16.800 There's an interesting case of what happens next because per 0:10:16.840 --> 0:10:19.559 the ruling, you know, the administration could go out and 0:10:19.600 --> 0:10:23.320 engage with the companies and talk to them freely. That 0:10:23.440 --> 0:10:25.640 is the top line of the story. Whether they do 0:10:25.840 --> 0:10:28.199 or not remains to be seen, because in October there 0:10:28.240 --> 0:10:31.880 was a temporary holp per the courts, and as we 0:10:32.000 --> 0:10:34.080 keep going out it is an election year, what does 0:10:34.120 --> 0:10:34.800 Biden and co. 0:10:35.000 --> 0:10:35.040 Do? 0:10:36.480 --> 0:10:38.520 It's an excellent question ed, and we're just going to 0:10:38.520 --> 0:10:40.360 have to wait and see, because of course all of 0:10:40.400 --> 0:10:42.680 this is going to be viewed through a political lens. 0:10:42.679 --> 0:10:45.640 There is a huge conservative thought in which the three 0:10:45.880 --> 0:10:49.319 ultra conservative justices who dissented in this decision, Thomas Alito 0:10:49.559 --> 0:10:51.920 and Neil Gorsich that do think the administration may be 0:10:52.040 --> 0:10:55.280 violating the race of free speech, specifically restricting the speech 0:10:55.720 --> 0:10:58.360 of the right and of more conservatives. And this is 0:10:58.400 --> 0:11:01.000 something that we see trickling through all all through American 0:11:01.040 --> 0:11:03.120 politics at this time, all the way up to the 0:11:03.120 --> 0:11:07.080 presumptive Republican nominee Donald Trump. So these decisions for the 0:11:07.120 --> 0:11:10.320 administration to be engaging with social media companies on what 0:11:10.480 --> 0:11:12.880 content can be propagated and seen by the people is 0:11:13.000 --> 0:11:15.560 very much politically tingent. I would just note ed it 0:11:15.600 --> 0:11:17.960 isn't just about what the administration does, but what social 0:11:18.000 --> 0:11:20.320 media companies themselves do. And I would point you to 0:11:20.320 --> 0:11:22.560 the fact that we are still waiting and ruling this 0:11:22.720 --> 0:11:25.000 term from the Supreme Court, so it should come within 0:11:25.040 --> 0:11:27.200 the next several days on laws in the states of 0:11:27.240 --> 0:11:30.240 Texas and Florida that restrict the ability of the social 0:11:30.240 --> 0:11:34.240 media companies themselves to police misinformation in the Court has 0:11:34.320 --> 0:11:36.160 yet to rule on that particular question. 0:11:36.880 --> 0:11:39.640 Bloombo's Katie Lyons, co host of Balance of Power, I 0:11:39.760 --> 0:11:42.839 watch Balance of Power and our Bloomberg Technology audience should 0:11:42.840 --> 0:11:43.079 as well. 0:11:43.120 --> 0:11:45.040 Thank you so much. Kay. Coming up on this show, 0:11:45.480 --> 0:11:46.440 we're going to be joined. 0:11:46.200 --> 0:11:49.880 By Jack Maller's CEO Strike to discuss the launch of 0:11:49.960 --> 0:11:54.439 the global Bitcoin app in my home country, the United Kingdom. 0:11:54.800 --> 0:11:56.960 I'm also taking a look at shares of guess what 0:11:57.600 --> 0:12:01.040 in Nvidia actually softer again down too point seven percent. 0:12:01.600 --> 0:12:04.000 Let's call it a rollercoaster ride. We were down three 0:12:04.120 --> 0:12:09.160 days straight with a technical correction. We rebounded and now 0:12:09.200 --> 0:12:11.840 we're down again two point five percent. There is the 0:12:11.880 --> 0:12:16.600 Annual General Meeting taking place straight after this program. Usually 0:12:16.640 --> 0:12:20.560 it's not a news event. Usually it's not that closely followed. 0:12:20.600 --> 0:12:23.400 But I wonder if this time it may well be. 0:12:23.480 --> 0:12:25.240 I'll be on hand, and so will Bloomberg Zy and 0:12:25.320 --> 0:12:39.640 King be right back. This is Bloomberg Technology. Okay, time 0:12:39.679 --> 0:12:43.320 for talking tech and first st up CME readies for trading. 0:12:43.280 --> 0:12:44.040 Via the cloud. 0:12:44.280 --> 0:12:46.920 Google will work with the exchange operator to build out 0:12:46.920 --> 0:12:50.000 a new network that would move futures and options trading 0:12:50.240 --> 0:12:53.280 to the cloud. The two firms will develop new facilities 0:12:53.360 --> 0:12:57.200 next to CMEs existing data centers, with construction due to 0:12:57.240 --> 0:13:02.760 start later this year. Plus Bank's AI ambition start with healthcare. 0:13:02.840 --> 0:13:06.040 Founder Massaoshi's son is set to host a panel with 0:13:06.240 --> 0:13:10.000 doctors and medical professionals on way to harness AI for 0:13:10.160 --> 0:13:13.480 the health sector. One company he's expected to bring up 0:13:13.679 --> 0:13:16.760 is tempers Ai, a US startup that's backed by some 0:13:16.840 --> 0:13:21.240 of a soft bank that analyzes medical data. And South 0:13:21.320 --> 0:13:24.160 Korean chipmakers are about to get a financial boost. The 0:13:24.160 --> 0:13:27.640 country is going to inject nineteen billion dollars in support 0:13:27.760 --> 0:13:28.600 to build out. 0:13:28.440 --> 0:13:29.720 The semiconductor industry. 0:13:29.760 --> 0:13:33.120 Starting in July, eligible firms could tap the program at 0:13:33.120 --> 0:13:36.400 the market's lowest rates. This comes as countries worldwide and 0:13:36.520 --> 0:13:40.880 moving to make chips locally due to global supply chain concerns. 0:13:41.400 --> 0:13:42.960 Those are some of the news stories we're following. I 0:13:42.960 --> 0:13:45.480 want to get to the world of crypto. The global 0:13:45.520 --> 0:13:50.160 bitcoin app Strike has now launched in the United Kingdom. 0:13:50.200 --> 0:13:53.600 Delighted to say that Strike CEO Jack Mallers joins us 0:13:53.600 --> 0:13:56.359 now here on Bloomberg Technology. I found this so interesting 0:13:57.720 --> 0:13:59.959 without boring you with it. You know, I moved to 0:14:00.120 --> 0:14:02.880 America six years ago, but at that time when I 0:14:02.920 --> 0:14:07.160 was covering technology, London in particular, I would say, and 0:14:07.240 --> 0:14:10.160 the consumer base was much more focus on fintech and 0:14:10.240 --> 0:14:14.840 crypto than perhaps other areas of technology. Six years on, 0:14:14.960 --> 0:14:16.800 you guys have made the move to that market. 0:14:16.840 --> 0:14:17.040 Why. 0:14:19.160 --> 0:14:22.280 I think, simply put, we view bitcoin as a paradigm shift. 0:14:22.520 --> 0:14:25.720 I think bitcoin is the first time humans have come 0:14:25.760 --> 0:14:28.880 across perfect money as we know it, and the world 0:14:28.920 --> 0:14:32.040 needs a global bitcoin company that's going to help them 0:14:32.080 --> 0:14:35.320 and provide them the financial services to adopt it. And 0:14:35.360 --> 0:14:38.400 so I think we are the most accessible, global and 0:14:38.560 --> 0:14:42.280 most performant bitcoin business in the world, like compared to 0:14:42.320 --> 0:14:45.280 a coinbase. We don't focus on a thousand other cryptos 0:14:45.320 --> 0:14:47.720 and our own blockchains and stuff. We just make sure 0:14:47.720 --> 0:14:50.120 that people have an amazing experience adopting the best money 0:14:50.120 --> 0:14:52.360 of all time. So that's why the people in the 0:14:52.480 --> 0:14:53.440 UK need bitcoin. 0:14:53.520 --> 0:14:56.560 Brother come on, well, well, Jack, I find that interesting though. 0:14:56.560 --> 0:14:58.960 So if you think about Strike as a platform or 0:14:59.000 --> 0:15:02.160 an app, what you will You can do several things, right, 0:15:02.160 --> 0:15:04.960 You can buy and sell bitcoin, you can make lightning payments, 0:15:05.120 --> 0:15:09.200 there's other functionality. But is there a specific use case 0:15:09.240 --> 0:15:12.400 that you think people of the United Kingdom will use most? 0:15:12.440 --> 0:15:14.600 In other words, was there a clear demand for a 0:15:14.640 --> 0:15:17.280 specific function Yeah? 0:15:17.320 --> 0:15:20.200 Well, I think bitcoin's the best performance asset in the 0:15:20.240 --> 0:15:23.880 history of our species, and so people want the best experience. 0:15:24.000 --> 0:15:26.240 That's kind of our baseline and we've become that and 0:15:26.280 --> 0:15:28.400 that's why we've been on such a tear expanding globally 0:15:28.400 --> 0:15:30.240 as everyone wants our product. 0:15:30.520 --> 0:15:31.840 I think that where we. 0:15:31.760 --> 0:15:35.040 Are in this market cycle, given the geopolitical backdrop and 0:15:35.080 --> 0:15:37.840 the macroeconomics and this upcoming election, is people need to 0:15:37.840 --> 0:15:39.840 buy it. There's gonna be a lot of new capital 0:15:39.880 --> 0:15:41.560 that is going to come into this asset class. 0:15:41.560 --> 0:15:42.440 It's my prediction. 0:15:42.480 --> 0:15:44.440 I've told you I think bitcoin's going to land somewhere 0:15:44.440 --> 0:15:46.640 between two hundred and fifty thousand to a million dollars 0:15:46.640 --> 0:15:50.480 per coin over the next twelve months or so. And 0:15:50.560 --> 0:15:53.040 so that is the highest volume product we have is 0:15:53.040 --> 0:15:55.000 people that call us and say, I need this thing? 0:15:55.080 --> 0:15:55.640 Can you help? 0:15:57.240 --> 0:16:00.400 One of the headwinds or challenges what you've hauted lined 0:16:00.400 --> 0:16:02.640 and yes you've outlined it before on the kind of 0:16:02.680 --> 0:16:07.160 direction of travel bitcoin is regulation and oversight. You know, 0:16:07.400 --> 0:16:10.160 we're focused on the UK. It's just one market in 0:16:09.960 --> 0:16:12.560 the one hundred or so you operate in. But what 0:16:12.640 --> 0:16:15.880 was that experience like launching in the UK having to 0:16:15.960 --> 0:16:20.720 work with post Brexit regulators who, as we've discussed a 0:16:20.760 --> 0:16:24.520 lot on this Showjack, they have tried to be strong right, 0:16:24.800 --> 0:16:27.960 particularly on newer areas of markets or nascent technology. 0:16:28.960 --> 0:16:31.480 You know what, Ed listen, I think that there's everyone 0:16:31.480 --> 0:16:33.800 can agree, both regulators and us. There's a lot of 0:16:33.840 --> 0:16:36.960 work to do on education, and there's definitely efficiencies and 0:16:37.000 --> 0:16:39.280 progress we can all make. But the fact that we're 0:16:39.320 --> 0:16:43.120 bitcoin only, I can say, was huge. No one is 0:16:43.160 --> 0:16:45.680 diligencing the fact that we're creating our own tokens. If 0:16:45.680 --> 0:16:49.480 something is a security, if I'm acting unethically, I build 0:16:49.640 --> 0:16:52.560 and sell the most honest performance money in the history 0:16:52.560 --> 0:16:54.600 of our species. And it's a very simple business. It's 0:16:54.600 --> 0:16:57.400 a very honest business. It's a very moral and integral business. 0:16:57.600 --> 0:17:01.160 And so it's been rather simple. While other businesses are 0:17:01.160 --> 0:17:04.480 retracting from markets and getting sued by regulators, we're not. 0:17:05.400 --> 0:17:06.760 And I think it has a lot to do with 0:17:06.800 --> 0:17:09.439 the fact that we're built on principle and I founded 0:17:09.440 --> 0:17:11.119 this business because I think bitcoin's going to change the 0:17:11.119 --> 0:17:14.360 world and I want to help. And so with that context, 0:17:14.920 --> 0:17:17.119 it was fine. It was fine, and we're pleased with 0:17:17.119 --> 0:17:17.560 the launch. 0:17:19.040 --> 0:17:21.800 Jack really quickly. We never really talk about Strike as 0:17:21.800 --> 0:17:24.320 a company. Are you going to be employing people in 0:17:24.359 --> 0:17:26.760 the UK? Have you've grown your staffing there? Have you 0:17:26.760 --> 0:17:28.639 got yourself a nice office? What does it look like? 0:17:29.680 --> 0:17:31.040 Yes, we will. 0:17:31.359 --> 0:17:35.359 Strike's growing a lot. We though, take this approach where 0:17:35.400 --> 0:17:37.600 we have two businesses. We have our operating company and 0:17:37.600 --> 0:17:40.000 then we have our treasury business, and we buy as 0:17:40.080 --> 0:17:43.040 much bitcoin as we possibly can. So Strikes a profitable, 0:17:43.080 --> 0:17:46.320 growing business and we sweep those profits into bitcoin over 0:17:46.520 --> 0:17:50.000 ninety percent of our treasury is actually in bitcoin, so 0:17:50.359 --> 0:17:53.560 the cost of capital is against bitcoin, so we only 0:17:53.720 --> 0:17:56.960 deploy capital and the things that we think can outcompete bitcoin, 0:17:57.160 --> 0:17:59.840 which is at an annualized average of sixty three percent 0:17:59.840 --> 0:18:02.600 of the last ten years. So we're delicate with how 0:18:02.640 --> 0:18:04.800 we invest. But of course I mean Strokes and Monster 0:18:05.560 --> 0:18:07.199 and we're going to keep porn capital and do it 0:18:07.240 --> 0:18:10.240 as long as people keep medcoining us strike. 0:18:10.320 --> 0:18:12.919 CEO Jack Mallards appreciate your time as always, Thank you 0:18:12.960 --> 0:18:25.600 so much time now for our weekly AI in Action segment, 0:18:25.640 --> 0:18:27.879 and today we're looking at the field of legal AI. 0:18:28.119 --> 0:18:32.520 Robin Ai works to enhance efficiency by automating much of 0:18:32.560 --> 0:18:35.840 the due diligence process that's involved in M and A. 0:18:35.960 --> 0:18:39.159 The company also announced their new product line, robin Ai 0:18:39.320 --> 0:18:40.639 Reports this month. 0:18:41.000 --> 0:18:41.440 Delighted. 0:18:41.560 --> 0:18:44.520 Welcome back to the program, CEO Richard Robinson. 0:18:45.000 --> 0:18:46.480 I think you and i've discussed this in the past. 0:18:46.480 --> 0:18:48.720 Like I am a student of the law, went to 0:18:48.800 --> 0:18:52.480 law school, family of attorneys, and thank goodness I didn't 0:18:52.480 --> 0:18:56.919 become one, but I get the point of robin Ai. 0:18:57.200 --> 0:18:59.920 Let's start with the new product line, the Reports l 0:19:00.520 --> 0:19:02.160 What is it and why did you feel the need 0:19:02.200 --> 0:19:03.399 to bring it out. 0:19:03.560 --> 0:19:04.040 Yeah. Sure. 0:19:04.359 --> 0:19:06.600 When I was a lawyer, one of the most painful 0:19:06.640 --> 0:19:08.960 things I ever had to do is something most lawyers 0:19:08.960 --> 0:19:13.000 spend their time doing is working through hundreds and hundreds 0:19:13.000 --> 0:19:16.760 of contracts trying to summarize those agreements. 0:19:16.160 --> 0:19:16.960 For our clients. 0:19:17.560 --> 0:19:20.240 People want to know what's inside all of these documents 0:19:20.280 --> 0:19:23.760 before they do a transaction, and unfortunately in the past, 0:19:23.800 --> 0:19:26.040 we've just never had technology to help us, and so 0:19:26.440 --> 0:19:30.439 we employ armies of associates through the night, week in, 0:19:30.640 --> 0:19:34.440 week out to basically go through these documents line by 0:19:34.520 --> 0:19:38.000 line looking for risks that they can report. And so 0:19:38.359 --> 0:19:41.160 we said, why can't we build something that uses AI 0:19:41.720 --> 0:19:44.199 to do that for us? That's essentially what our reports 0:19:44.200 --> 0:19:44.800 product does. 0:19:45.760 --> 0:19:53.119 The field of legal AI is widely discussed. We recognize 0:19:53.160 --> 0:19:56.600 a two horse race. Basically, you have an association with Anthropic. 0:19:57.240 --> 0:19:59.679 There is another legal AI named Harvey. We've had on 0:19:59.720 --> 0:20:03.000 this closely aligned to open Ai. In fact, I think 0:20:03.040 --> 0:20:06.920 open ai made it an equity investment in them. 0:20:07.040 --> 0:20:08.879 You're going to win that race, of course. 0:20:09.280 --> 0:20:12.920 I mean we are legal AI for business and Harvey 0:20:12.960 --> 0:20:16.000 and open ai are really focused on law firms, and 0:20:16.080 --> 0:20:19.359 we think that's interesting but what motivates us is trying 0:20:19.359 --> 0:20:23.800 to help companies like Bloomberg, like General Electric, like PwC, 0:20:24.400 --> 0:20:29.200 helping them do their work faster, unleashing them to grow 0:20:29.280 --> 0:20:31.800 in ways that they can't today because in the absence 0:20:31.840 --> 0:20:35.840 of the right technology, managing legal risks is just time consuming. 0:20:35.880 --> 0:20:38.720 It's expensive. But if you use tools like ours, we 0:20:38.840 --> 0:20:40.880 have customers saving ninety. 0:20:40.600 --> 0:20:41.480