Speaker 1: We're from Marhart where Innovation, money and power Collie in
Speaker 1: Silicon Vallet NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Lovedlove.
Speaker 3: I med Lodlow in San Francisco. Caroline hides at Bloomberg invest.
Speaker 3: But this is Bloomberg Technology coming up. Full ev coverage
Speaker 3: ahead as Rivian and VW forge a five billion dollar partnership.
Speaker 3: Plus the Supreme Court clears the way for the White
Speaker 3: House communicating freely with social media companies to seek the
Speaker 3: removal of what officials see as misinformation. And we go
Speaker 3: live to our Bloomberg invest summit, where heavyweights across the
Speaker 3: financial industry break down the most pressing issues facing investors right.
Speaker 4: Here, right now.
Speaker 3: Let's get right to our story, and that is a
Speaker 3: deal between Rivian Automotive and Volkswagen. The shares really taking
Speaker 3: off in after hours. They were even higher on Tuesday night. Rivian,
Speaker 3: as it stands, is trading at its highest level since February.
Speaker 3: If it closes at this level, it will be the
Speaker 3: biggest gain one day on record.
Speaker 4: Although I'd caution.
Speaker 3: Following the IPO in November twenty twenty one, we did
Speaker 3: see swings in excess of fifty percent, and it did
Speaker 3: not close near those levels. This is a company that
Speaker 3: I've covered very closely for years. Have to be honest
Speaker 3: that I didn't see this one coming. Basically, in the
Speaker 3: first instance, Volkswagen will invest one billion dollars into Rivian
Speaker 3: in the form of a convertible unsecured or unstructured note
Speaker 3: due December one of this year, and then commits to
Speaker 3: investing one billion dollars in twenty twenty five one billion
Speaker 3: dollars in twenty twenty six, but we don't know where
Speaker 3: this share price will be at that time. Of Rivian
Speaker 3: right in return, they form a JV, but Volkswagen gets
Speaker 3: access to Rivian's technology, both software and some elements of
Speaker 3: the dry train or power train. This is a big
Speaker 3: one for the EV industry. Let's get into detail with
Speaker 3: Stephanie vauders Street. Stephanie is the director of Industry Insights
Speaker 3: at Coxauto Motive, a quick disfamer. Cox Enterprise, which is
Speaker 3: the parent company of Coxhau's Motive, is an investor in Rivian,
Speaker 3: and Sandy Schwartz, CEO of the Cox Family Office, a
Speaker 3: member of the Rivian board of directors. But we have
Speaker 3: Stephanie here for her expertise on this company, these companies,
Speaker 3: and expertise on this industry. So let's start with the
Speaker 3: basic Stephanie, your reaction to this deal well, and I think.
Speaker 5: You hit it when you said this was an unexpected
Speaker 5: announcement and it's making ways for the industry, and I
Speaker 5: think it's huge. It's a breakthrough moment for Rivian. As
Speaker 5: you know, we've been following Rivian also, and although they've
Speaker 5: made some really good progress in the market with their products,
Speaker 5: with their customer experience, you know, being becoming profitable has
Speaker 5: been a big issue, and so this investment is huge.
Speaker 5: It's going to help them really become get on that
Speaker 5: road to profitability, especially as they're trying to launch the
Speaker 5: n R two, which is a very critical vehicle for
Speaker 5: them in terms of affordability in the marketplace and kind
Speaker 5: of in that segment where there's more volume. So I
Speaker 5: think this is a huge moment and I think for
Speaker 5: VW as well. Right having access to that cutting edge technology,
Speaker 5: and I think the opportunities for a global expansion for
Speaker 5: both companies is really really going to be a positive
Speaker 5: for both.
Speaker 3: When the news broke last night, I took a few
Speaker 3: phone calls and What was so interesting is very quickly
Speaker 3: a few folks close to Rivian and at Rivian and
Speaker 3: elsewhere in the industry would point out to me Volkswagen's
Speaker 3: software strategy has not gone that well. They kind of
Speaker 3: formed carry AD, the unit and the carry AD platform.
Speaker 3: I'm told they face some major issues. How much do
Speaker 3: you think this is sort of Volkswagen reacting to that
Speaker 3: versus actually pretty much an acknowledgment that Rivian is good
Speaker 3: at software.
Speaker 5: Yeah, I think it's I think it's both what Volkswagen's
Speaker 5: you know, acknowledging that Rivine has his cutting into technology
Speaker 5: is going to really help them to scale. And I
Speaker 5: even think about broader, like if you think about the
Speaker 5: Chinese outmakers and just kind of with the penetration that
Speaker 5: they've had and the technology that they've had. So I
Speaker 5: think this is going to really help VW not only
Speaker 5: in the North American market, but globally as well. So
Speaker 5: I think they really saw that this is something that's
Speaker 5: really going to help their brand and really scale, help
Speaker 5: them scale faster and more efficiently.
Speaker 3: I have to be honest with you, Stephanie, Rivian's track
Speaker 3: record in joint ventures is not good. You know, I've
Speaker 3: been covering this company since the moment that RJA was
Speaker 3: on stage at the LA Auto Show and revealed to
Speaker 3: the world that he had to pick up an suv.
Speaker 3: And within you know, three or four years after that,
Speaker 3: the Ford JV had been and gone. Ford invested five
Speaker 3: hundred million in Rivian and then they plan to build
Speaker 3: a Lincoln together. They scrapped it. They plan to build
Speaker 3: a joint venture EV together, they scrapped it. The Mercedes
Speaker 3: relationship on commercial vans lasted three months. How much of
Speaker 3: a cautionarytail is that for Volkswagen.
Speaker 2: No.
Speaker 5: I definitely think they need to be cautious, especially in
Speaker 5: it's two distinct companies, right, and they need to constantly
Speaker 5: make sure that their strategic goals are aligned. So I
Speaker 5: think to your point, it's going to be you know,
Speaker 5: it's going to be a long bumpy road, but I
Speaker 5: think they're going to have to be very focused on
Speaker 5: making sure they're aligned and kind of what you just
Speaker 5: mentioned about some of the failures in the past. So
Speaker 5: I think it's definitely something a risk, right that they
Speaker 5: need to clo closely follow and make sure that they're aligned.
Speaker 3: You and I spoke very recently about market share, so
Speaker 3: Rivian is going to come to market in twenty twenty
Speaker 3: six with R two and that probably will be a
Speaker 3: competitor for existing models like the Model Why. But at
Speaker 3: the same time, Tesla is seeding some market share in
Speaker 3: North America and other markets, there's more models join the market.
Speaker 3: How are you tracking that and how do you see
Speaker 3: that going?
Speaker 5: Yeah, I definitely see like all about product right, customers
Speaker 5: like new product, and with Rivian having the R two
Speaker 5: R three adding more vehicles into the marketplace, I think
Speaker 5: that's going to really in terms of like Tesla not
Speaker 5: having anything other than recently the cyber truck and no
Speaker 5: definitive timeline for the more vehicle, I think Tesla definitely
Speaker 5: has more and more competition, and not only with Rivi
Speaker 5: and VW but other makes as well. So I definitely
Speaker 5: think Tesla is really going to need to get some
Speaker 5: product into the market to maintain that share that they've
Speaker 5: had for many, many years.
Speaker 3: I've got a stat for you for the twelve months
Speaker 3: through May, Tesla sold six hundred and eighteen thousand electric
Speaker 3: vehicles in the United States. All of the other manufacturers
Speaker 3: combined sold ABV five hundred and ninety seven thousand, so
Speaker 3: at some point, I.
Speaker 4: Think we expect that to cross, right.
Speaker 3: But the question it raises is one that Scarringe has
Speaker 3: argued with me about over many years. He says that
Speaker 3: this isn't an issue of interest rates or necessarily or
Speaker 3: tepid consumer appetite towards EBS. Generally, he argues, we need
Speaker 3: more models. The more models we have on the market,
Speaker 3: the better the market will be.
Speaker 4: Do you share that thesis?
Speaker 5: Yeah, I think we need more models, but more affordable markets. Right,
Speaker 5: if we want mass adoption, we need to have more
Speaker 5: affordable models. Price is the top barrier for consumer adoption,
Speaker 5: and so as we have more and more affordable markets
Speaker 5: our models in the marketplace, that's going to help with adoption.
Speaker 5: So I think I agree with that more models, but
Speaker 5: more affordable models is going to be critical.
Speaker 3: Cost your eye to the future. What happens with Ribby
Speaker 3: and Stephanie.
Speaker 5: I'm betting on them. I think they have a lot
Speaker 5: of good brand equity in the marketplace. I think the
Speaker 5: VW partnership is really a lot of great potential, and
Speaker 5: I think their collaboration can really evolve this whole connected up,
Speaker 5: devined vehicle technology, and so I think I think it's promising,
Speaker 5: but like being just mentioned, I think they just need
Speaker 5: to be careful that their strategic goals are aligned in
Speaker 5: their lockstep in.
Speaker 3: True definitely about as Stephanie, about as Stretty of cocksurces motive.
Speaker 3: I just appreciate your insight, not just to Rivian VW,
Speaker 3: which I think caught us by surprise, but the industry
Speaker 3: at large as well.
Speaker 4: Thank you so much.
Speaker 3: Okay, let's turn to some breaking news that's come out
Speaker 3: in the last hour. The Supreme Court cleared the Biden
Speaker 3: administration to communicate freely with social media companies in an
Speaker 3: election year, which rules that bolsters the government's ability to
Speaker 3: seek removal of what official seat is misinformation. I want
Speaker 3: to bring in Bloombergs Katie Lions out of Washington, DC. Kaylee,
Speaker 3: you know I saw the headline cross and I've just
Speaker 3: read the interest to you, and I'm trying to understand
Speaker 3: the mechanics and bigger picture of this story.
Speaker 4: Explain it to me, Well, technically.
Speaker 6: This is a win for the White House. You're exactly why,
Speaker 6: and that it leaves the door open for them to
Speaker 6: communicate freely with social media companies about content that they
Speaker 6: see as misinformation that could potentially be harmful to the public.
Speaker 6: This case all started with questions around the administration's activity
Speaker 6: with social media companies and trying to control information related
Speaker 6: to the COVID nineteen pandemic and the twenty twenty election,
Speaker 6: and the plaintiffs in this case essentially argued that they
Speaker 6: overstepped the constitutional bounds of the right to free speech.
Speaker 6: The thing is, in this ruling, which was six to three,
Speaker 6: the majority opinion, written by Justice Amy Coney Barrett, doesn't
Speaker 6: actually talk about the merits of the case. It's about standing.
Speaker 6: They essentially argue that the plaintiffs, which included two states
Speaker 6: and a handful of residents within those states, did not
Speaker 6: have the standing to be bringing this case because they
Speaker 6: couldn't demonstrate that they were directly injured by the defendants, which,
Speaker 6: of course, in this case is is the Biden administration.
Speaker 6: So this is kind of similar to the myth ofpristone
Speaker 6: ruling we got earlier this month, where they didn't actually
Speaker 6: decide necessarily definitively on access to that abortion pill. It
Speaker 6: was just that the individuals, the people that brought the case,
Speaker 6: did not have standing, which is why they ruled in
Speaker 6: favor of keeping access to it, so it leaves the
Speaker 6: door open ed for this question to still be raised
Speaker 6: again in the future, technically by plaintiffs who may have
Speaker 6: more firm ground to stand on.
Speaker 3: There's an interesting case of what happens next because per
Speaker 3: the ruling, you know, the administration could go out and
Speaker 3: engage with the companies and talk to them freely. That
Speaker 3: is the top line of the story. Whether they do
Speaker 3: or not remains to be seen, because in October there
Speaker 3: was a temporary holp per the courts, and as we
Speaker 3: keep going out it is an election year, what does
Speaker 3: Biden and co.
Speaker 7: Do?
Speaker 6: It's an excellent question ed, and we're just going to
Speaker 6: have to wait and see, because of course all of
Speaker 6: this is going to be viewed through a political lens.
Speaker 6: There is a huge conservative thought in which the three
Speaker 6: ultra conservative justices who dissented in this decision, Thomas Alito
Speaker 6: and Neil Gorsich that do think the administration may be
Speaker 6: violating the race of free speech, specifically restricting the speech
Speaker 6: of the right and of more conservatives. And this is
Speaker 6: something that we see trickling through all all through American
Speaker 6: politics at this time, all the way up to the
Speaker 6: presumptive Republican nominee Donald Trump. So these decisions for the
Speaker 6: administration to be engaging with social media companies on what
Speaker 6: content can be propagated and seen by the people is
Speaker 6: very much politically tingent. I would just note ed it
Speaker 6: isn't just about what the administration does, but what social
Speaker 6: media companies themselves do. And I would point you to
Speaker 6: the fact that we are still waiting and ruling this
Speaker 6: term from the Supreme Court, so it should come within
Speaker 6: the next several days on laws in the states of
Speaker 6: Texas and Florida that restrict the ability of the social
Speaker 6: media companies themselves to police misinformation in the Court has
Speaker 6: yet to rule on that particular question.
Speaker 3: Bloombo's Katie Lyons, co host of Balance of Power, I
Speaker 3: watch Balance of Power and our Bloomberg Technology audience should
Speaker 3: as well.
Speaker 4: Thank you so much. Kay. Coming up on this show,
Speaker 4: we're going to be joined.
Speaker 3: By Jack Maller's CEO Strike to discuss the launch of
Speaker 3: the global Bitcoin app in my home country, the United Kingdom.
Speaker 3: I'm also taking a look at shares of guess what
Speaker 3: in Nvidia actually softer again down too point seven percent.
Speaker 3: Let's call it a rollercoaster ride. We were down three
Speaker 3: days straight with a technical correction. We rebounded and now
Speaker 3: we're down again two point five percent. There is the
Speaker 3: Annual General Meeting taking place straight after this program. Usually
Speaker 3: it's not a news event. Usually it's not that closely followed.
Speaker 3: But I wonder if this time it may well be.
Speaker 3: I'll be on hand, and so will Bloomberg Zy and
Speaker 3: King be right back. This is Bloomberg Technology. Okay, time
Speaker 3: for talking tech and first st up CME readies for trading.
Speaker 4: Via the cloud.
Speaker 3: Google will work with the exchange operator to build out
Speaker 3: a new network that would move futures and options trading
Speaker 3: to the cloud. The two firms will develop new facilities
Speaker 3: next to CMEs existing data centers, with construction due to
Speaker 3: start later this year. Plus Bank's AI ambition start with healthcare.
Speaker 3: Founder Massaoshi's son is set to host a panel with
Speaker 3: doctors and medical professionals on way to harness AI for
Speaker 3: the health sector. One company he's expected to bring up
Speaker 3: is tempers Ai, a US startup that's backed by some
Speaker 3: of a soft bank that analyzes medical data. And South
Speaker 3: Korean chipmakers are about to get a financial boost. The
Speaker 3: country is going to inject nineteen billion dollars in support
Speaker 3: to build out.
Speaker 4: The semiconductor industry.
Speaker 3: Starting in July, eligible firms could tap the program at
Speaker 3: the market's lowest rates. This comes as countries worldwide and
Speaker 3: moving to make chips locally due to global supply chain concerns.
Speaker 3: Those are some of the news stories we're following. I
Speaker 3: want to get to the world of crypto. The global
Speaker 3: bitcoin app Strike has now launched in the United Kingdom.
Speaker 3: Delighted to say that Strike CEO Jack Mallers joins us
Speaker 3: now here on Bloomberg Technology. I found this so interesting
Speaker 3: without boring you with it. You know, I moved to
Speaker 3: America six years ago, but at that time when I
Speaker 3: was covering technology, London in particular, I would say, and
Speaker 3: the consumer base was much more focus on fintech and
Speaker 3: crypto than perhaps other areas of technology. Six years on,
Speaker 3: you guys have made the move to that market.
Speaker 4: Why.
Speaker 7: I think, simply put, we view bitcoin as a paradigm shift.
Speaker 7: I think bitcoin is the first time humans have come
Speaker 7: across perfect money as we know it, and the world
Speaker 7: needs a global bitcoin company that's going to help them
Speaker 7: and provide them the financial services to adopt it. And
Speaker 7: so I think we are the most accessible, global and
Speaker 7: most performant bitcoin business in the world, like compared to
Speaker 7: a coinbase. We don't focus on a thousand other cryptos
Speaker 7: and our own blockchains and stuff. We just make sure
Speaker 7: that people have an amazing experience adopting the best money
Speaker 7: of all time. So that's why the people in the
Speaker 7: UK need bitcoin.
Speaker 3: Brother come on, well, well, Jack, I find that interesting though.
Speaker 3: So if you think about Strike as a platform or
Speaker 3: an app, what you will You can do several things, right,
Speaker 3: You can buy and sell bitcoin, you can make lightning payments,
Speaker 3: there's other functionality. But is there a specific use case
Speaker 3: that you think people of the United Kingdom will use most?
Speaker 3: In other words, was there a clear demand for a
Speaker 3: specific function Yeah?
Speaker 7: Well, I think bitcoin's the best performance asset in the
Speaker 7: history of our species, and so people want the best experience.
Speaker 7: That's kind of our baseline and we've become that and
Speaker 7: that's why we've been on such a tear expanding globally
Speaker 7: as everyone wants our product.
Speaker 4: I think that where we.
Speaker 7: Are in this market cycle, given the geopolitical backdrop and
Speaker 7: the macroeconomics and this upcoming election, is people need to
Speaker 7: buy it. There's gonna be a lot of new capital
Speaker 7: that is going to come into this asset class.
Speaker 4: It's my prediction.
Speaker 7: I've told you I think bitcoin's going to land somewhere
Speaker 7: between two hundred and fifty thousand to a million dollars
Speaker 7: per coin over the next twelve months or so. And
Speaker 7: so that is the highest volume product we have is
Speaker 7: people that call us and say, I need this thing?
Speaker 4: Can you help?
Speaker 3: One of the headwinds or challenges what you've hauted lined
Speaker 3: and yes you've outlined it before on the kind of
Speaker 3: direction of travel bitcoin is regulation and oversight. You know,
Speaker 3: we're focused on the UK. It's just one market in
Speaker 3: the one hundred or so you operate in. But what
Speaker 3: was that experience like launching in the UK having to
Speaker 3: work with post Brexit regulators who, as we've discussed a
Speaker 3: lot on this Showjack, they have tried to be strong right,
Speaker 3: particularly on newer areas of markets or nascent technology.
Speaker 7: You know what, Ed listen, I think that there's everyone
Speaker 7: can agree, both regulators and us. There's a lot of
Speaker 7: work to do on education, and there's definitely efficiencies and
Speaker 7: progress we can all make. But the fact that we're
Speaker 7: bitcoin only, I can say, was huge. No one is
Speaker 7: diligencing the fact that we're creating our own tokens. If
Speaker 7: something is a security, if I'm acting unethically, I build
Speaker 7: and sell the most honest performance money in the history
Speaker 7: of our species. And it's a very simple business. It's
Speaker 7: a very honest business. It's a very moral and integral business.
Speaker 7: And so it's been rather simple. While other businesses are
Speaker 7: retracting from markets and getting sued by regulators, we're not.
Speaker 7: And I think it has a lot to do with
Speaker 7: the fact that we're built on principle and I founded
Speaker 7: this business because I think bitcoin's going to change the
Speaker 7: world and I want to help. And so with that context,
Speaker 7: it was fine. It was fine, and we're pleased with
Speaker 7: the launch.
Speaker 3: Jack really quickly. We never really talk about Strike as
Speaker 3: a company. Are you going to be employing people in
Speaker 3: the UK? Have you've grown your staffing there? Have you
Speaker 3: got yourself a nice office? What does it look like?
Speaker 4: Yes, we will.
Speaker 7: Strike's growing a lot. We though, take this approach where
Speaker 7: we have two businesses. We have our operating company and
Speaker 7: then we have our treasury business, and we buy as
Speaker 7: much bitcoin as we possibly can. So Strikes a profitable,
Speaker 7: growing business and we sweep those profits into bitcoin over
Speaker 7: ninety percent of our treasury is actually in bitcoin, so
Speaker 7: the cost of capital is against bitcoin, so we only
Speaker 7: deploy capital and the things that we think can outcompete bitcoin,
Speaker 7: which is at an annualized average of sixty three percent
Speaker 7: of the last ten years. So we're delicate with how
Speaker 7: we invest. But of course I mean Strokes and Monster
Speaker 7: and we're going to keep porn capital and do it
Speaker 7: as long as people keep medcoining us strike.
Speaker 3: CEO Jack Mallards appreciate your time as always, Thank you
Speaker 3: so much time now for our weekly AI in Action segment,
Speaker 3: and today we're looking at the field of legal AI.
Speaker 3: Robin Ai works to enhance efficiency by automating much of
Speaker 3: the due diligence process that's involved in M and A.
Speaker 3: The company also announced their new product line, robin Ai
Speaker 3: Reports this month.
Speaker 4: Delighted.
Speaker 3: Welcome back to the program, CEO Richard Robinson.
Speaker 4: I think you and i've discussed this in the past.
Speaker 3: Like I am a student of the law, went to
Speaker 3: law school, family of attorneys, and thank goodness I didn't
Speaker 3: become one, but I get the point of robin Ai.
Speaker 3: Let's start with the new product line, the Reports l
Speaker 3: What is it and why did you feel the need
Speaker 3: to bring it out.
Speaker 2: Yeah. Sure.
Speaker 8: When I was a lawyer, one of the most painful
Speaker 8: things I ever had to do is something most lawyers
Speaker 8: spend their time doing is working through hundreds and hundreds
Speaker 8: of contracts trying to summarize those agreements.
Speaker 2: For our clients.
Speaker 8: People want to know what's inside all of these documents
Speaker 8: before they do a transaction, and unfortunately in the past,
Speaker 8: we've just never had technology to help us, and so
Speaker 8: we employ armies of associates through the night, week in,
Speaker 8: week out to basically go through these documents line by
Speaker 8: line looking for risks that they can report. And so
Speaker 8: we said, why can't we build something that uses AI
Speaker 8: to do that for us? That's essentially what our reports
Speaker 8: product does.
Speaker 3: The field of legal AI is widely discussed. We recognize
Speaker 3: a two horse race. Basically, you have an association with Anthropic.
Speaker 3: There is another legal AI named Harvey. We've had on
Speaker 3: this closely aligned to open Ai. In fact, I think
Speaker 3: open ai made it an equity investment in them.
Speaker 4: You're going to win that race, of course.
Speaker 8: I mean we are legal AI for business and Harvey
Speaker 8: and open ai are really focused on law firms, and
Speaker 8: we think that's interesting but what motivates us is trying
Speaker 8: to help companies like Bloomberg, like General Electric, like PwC,
Speaker 8: helping them do their work faster, unleashing them to grow
Speaker 8: in ways that they can't today because in the absence
Speaker 8: of the right technology, managing legal risks is just time consuming.
Speaker 8: It's expensive. But if you use tools like ours, we
Speaker 8: have customers saving ninety.
Speaker 4: Percent at the time.
Speaker 3: Could I have some data, then, how many M and
Speaker 3: A transactions has robin Ai facilitated for example?
Speaker 8: Yeah, I mean we've been involved. It's worth saying we've
Speaker 8: been doing this for nearly five years now. I mean
Speaker 8: we support M and A transactions. We've fort about one
Speaker 8: thousand transactions a month already for some of the world's
Speaker 8: biggest companies, for five of the Fortune five hundred, for
Speaker 8: seven of the top one hundred funds.
Speaker 1: In the world.
Speaker 8: We've been really working with business since twenty nineteen, long
Speaker 8: before LMS, to help them use AI to accelerate deals,
Speaker 8: and working with Anthropic has just helped us expand our
Speaker 8: reach and focus.
Speaker 3: Robin Ai CEO, Richard Robinson, it's great to have you
Speaker 3: back on the program and keeping us up to date.
Speaker 4: Thank you so much coming up.
Speaker 3: Mike Run's out with earnings later today, and we have
Speaker 3: all the details on what to expect next, plus getting
Speaker 3: a bit hands on with some of the tech. We're
Speaker 3: also looking at shares of Paramount, a headline out this
Speaker 3: morning discussion about Paramount looking at global options global partnerships
Speaker 3: for streaming services. The saga continues about the future of Paramount,
Speaker 3: its assets, ownership and what happens. But for now, the
Speaker 3: stock's down one point three percent in the session.
Speaker 4: It's a story.
Speaker 3: I'm sure we'll continue to track in the next few
Speaker 3: weeks because from an m and A perspective, or even
Speaker 3: just a street of perspective, is something that I know
Speaker 3: audience really cares about.
Speaker 4: Stay with us a lot more to come on the show.
Speaker 4: This is Bloomberg.
Speaker 3: We got hands on with Nvidia's AI accelerator, the H
Speaker 3: one hundred, but this.
Speaker 4: Little one is pretty important too.
Speaker 3: It's Micron's HBM three E, the high bandwidth memory chip
Speaker 3: used to power AI workloads. The text revolutionary for the
Speaker 3: industry because it allows for high speed data transfers and
Speaker 3: more capacity, both bottlenecks in developing AI. Producing the chips
Speaker 3: is complex, but the payoff is great for Micron, Samsung,
Speaker 3: and other players. The Micron chip's smaller and thinner than
Speaker 3: a penny. It's key to training lllms for generative AI. Basically,
Speaker 3: the more data you can serve up more quickly, the
Speaker 3: better the model gets. There are eight layers of DRAM
Speaker 3: or memory, stacked on top of each other. Each layer
Speaker 3: is three gigabytes, so together you get twenty four gigabytes.
Speaker 3: The reason that Micron's HBM three or high Bowandwidth memory
Speaker 3: is important is that in the AI context, it solves
Speaker 3: for a problem called the memory wall.
Speaker 4: To train the lms.
Speaker 3: Behind chat GPT, for example, you need to be able
Speaker 3: to process a large amount of data very quickly.
Speaker 4: As AI workloads.
Speaker 3: Increase and in Vidia releases new higher performance AI chips
Speaker 3: like Blackwell, the memory demands also increase. This year, Micron
Speaker 3: also released a higher capacity chip that stacks twelve layers
Speaker 3: of d rams, so thirty six gigabytes of memory. The
Speaker 3: two look identical when placed side by side. Each layer
Speaker 3: is made thinner to provide more memory without taking up
Speaker 3: more physical space. The next in our series of getting
Speaker 3: hands on with semiconductors, a quick look at Micron shares
Speaker 3: softer be half a percentage point. Micron is scheduled to
Speaker 3: release its third quarter results after the market closes today,
Speaker 3: and a big focus on like, when's the AI story
Speaker 3: going to hit in top line growth here with expectations
Speaker 3: is Bloomberg Intelligence and Jake Silverman, you know, we focus
Speaker 3: HBM three or high bandwidth memory, but that's where the
Speaker 3: street's looking as well.
Speaker 9: Right, Yes, certainly investors are definitely going to be looking
Speaker 9: at expectations for high bandwidth memory growth for Micron, both
Speaker 9: in fiscal twenty four but also looking at calendar twenty
Speaker 9: twenty five. Micron's management has we think is a pretty
Speaker 9: reasonable goal of reaching mid twenty percent bitchhare for HBM
Speaker 9: by twenty twenty five.
Speaker 3: So historically, Jake, you know, memory is a kind of
Speaker 3: highly cyclical and almost commoditized piece of technology. Does AI
Speaker 3: change that, because in the context of AI accelerators or GPUs,
Speaker 3: we just talk about this addressable market and exponential growth curve.
Speaker 4: Yeah, so it's definitely different.
Speaker 9: You definitely don't have the same commodity like cycles, the
Speaker 9: same commodity like expectations for HBM that we would typically
Speaker 9: see with memory markets. This is definitely a secular trend
Speaker 9: that's really being driven by AI, and in terms of
Speaker 9: HBM capacity, they're actually supply cans train right now memory suppliers,
Speaker 9: so they're getting they're getting margin advantages right now relative
Speaker 9: to standard DRAMs. So as as HBM continues to grow
Speaker 9: in terms of revenue, that should also lead to margin
Speaker 9: expansion for memory suppliers as well.
Speaker 3: I'm really interested in how much Sanjay Morotra, the CEO,
Speaker 3: gives us a crystal ball into the future because in
Speaker 3: the first day instance, HBM three goes with H two
Speaker 3: hundred generation of Nvidia's AI accelerator. But in the future, yeah, Blackwell, Like,
Speaker 3: maybe he'll tell us how much money they make. But
Speaker 3: I'm interested in the landscape. You know, Samsung is looking
Speaker 3: at high band with memory. You have sk Heinex. You
Speaker 3: know what where does Micron sit in that competitive field?
Speaker 2: Yeah?
Speaker 9: Yeah, so sk Heinix has been the leader. They've really
Speaker 9: been sort of the sole supplier to in Vida's H
Speaker 9: one hundred chip. But as we look at H two hundred,
Speaker 9: Micron seems to have gained a decent amount of shared there,
Speaker 9: and we're expecting Micron to gain share into their Blackwell
Speaker 9: chip as well. But that's not the only opportunity for
Speaker 9: Micron as well, they can continue to gain share in
Speaker 9: other GPUs accelerators. There's a lot of options AMDs as
Speaker 9: well as one example, Google's TPU is another opportunity. All
Speaker 9: of those chips require high BANDWTH memory.
Speaker 3: There is some other stuff that we should talk about,
Speaker 3: I mean, DRAM generally nand or flash memory. What are
Speaker 3: some of the other important areas of Micron's business.
Speaker 9: Yeah, so there's also i mean, you know, staying on
Speaker 9: the topic of AI as well. Aside from HBM, they
Speaker 9: actually still have products that are related to AI growth,
Speaker 9: high capacity memory modules for DRAM, enterprise SSDs, all of
Speaker 9: those are starting to see an inflection related to AI revenue.
Speaker 9: But generally speaking, the market just looks a lot healthier
Speaker 9: as we think about supply construs and limited capacity this
Speaker 9: year and potentially into next year as well, we're expecting
Speaker 9: pricing to continue to increase for non eight AI related
Speaker 9: products for Micron.
Speaker 4: Okay, put you on the spot.
Speaker 3: What are we expecting that give me the top line
Speaker 3: growth numbers and where b I sees the print this evening.
Speaker 9: Yeah, so we think that Micron will report above the
Speaker 9: mid range of guidance for both revenue and earnings, and
Speaker 9: as prices continue to increase throughout this year, that could
Speaker 9: lead to upward estimate revisions across the street for this
Speaker 9: year and potentially next year as well.
Speaker 3: You are new to the show BlueBag Technology, but we're
Speaker 3: grateful to have you. What else are you working on
Speaker 3: in the field of memory right now? You know, it's
Speaker 3: a big coverage area. We talked about how historically it
Speaker 3: behaves like a commodity, and it's also a global industry
Speaker 3: as well.
Speaker 9: Yeah, so we've already done an HBM sort of market
Speaker 9: forecast that goes out five years to twenty twenty eight,
Speaker 9: So that's something that we're continuously tracking and looking at.
Speaker 9: But on top of that, we're also just looking at
Speaker 9: for non AI related products, what capacity is going to
Speaker 9: look like throughout this year and next year, to try
Speaker 9: to understand what that supply demand balance looks like.
Speaker 1: So that's just.
Speaker 9: Ongoing work that we're continuously looking at how that impacts
Speaker 9: pricing and ultimately demand for the company's products.
Speaker 3: Bloomberg Intelligence analyst Jake Silman. As you can tell, I
Speaker 3: could talk about the memory market all day long.
Speaker 4: Thank you.
Speaker 3: Now, Bloomberg invest is underway in New York. Let's get
Speaker 3: to the live event. Our very own Caroline Hide is
Speaker 3: sitting down with Canvas Ventures Rebecca Lynch and Licos Globals
Speaker 3: Management's Nick Laster.
Speaker 1: And general partner at Canvas Ventures with Bloomberg's Caroline Hide.
Speaker 10: To have two people kind of at either end of
Speaker 10: the spectrum here when it comes to private investing, going
Speaker 10: into public investing and I want to sort of launch
Speaker 10: trade in what on earth it is like to be
Speaker 10: writing checks at either rent at the moment. So with
Speaker 10: the Lucas of course, Nick, you are looking much more
Speaker 10: at the late stage rounds IPOs maybe just very recently
Speaker 10: gone public companies. And then Rebecca with you you're more in
Speaker 10: the series A the series B.
Speaker 11: So Rebecca kick us off. Yeah. Is it competitive?
Speaker 12: You know it is competitive, But for how we approach
Speaker 12: the market, we we really have a lot of runway
Speaker 12: in front of us because we spend a lot of
Speaker 12: time on our core investment thesis. And now with Jenai,
Speaker 12: which who hasn't heard of that.
Speaker 11: I've never heard of it, never heard of it.
Speaker 12: There are so many really interesting opportunities from founders that
Speaker 12: have done multiple exits in the past, multiple companies and
Speaker 12: so we've done three this year and the pricing is
Speaker 12: back down to wait, you know, pre twenty one levels,
Speaker 12: all with the Jenai focus. But you have to really
Speaker 12: know what you're looking for and you have to know
Speaker 12: what to avoid.
Speaker 10: Okay, So, Nick, if we're looking at Lucas's approach right now,
Speaker 10: of course come out of soare us raising our own
Speaker 10: fund already? In call we for example, which is one
Speaker 10: of the pin ups in Ai.
Speaker 11: Was that a hustle to get into How competitive it was?
Speaker 13: I think it's the earnest is on investors to do
Speaker 13: something other than just write a check, because capital is
Speaker 13: something of a commodity for us, and particularly with Corey I, Mike, Brandon, Bryan,
Speaker 13: it came down to our ability to help them tell
Speaker 13: their story in a way that was going to resonate
Speaker 13: as they transitioned to public markets.
Speaker 11: Job net.
Speaker 2: But no, it's an exceptional asset.
Speaker 13: We were humble to partner with them, but it requires
Speaker 13: investors to hone and clearly articulate their value prop.
Speaker 10: So we already have brought up jen Ai. So, Nick,
Speaker 10: if a company right now is that the upper ends
Speaker 10: of raising money actually might even be eyeing the public markets,
Speaker 10: does jenerator, AI have to be in their story. That's
Speaker 10: your key selling point, and you can help companies tell
Speaker 10: a story.
Speaker 11: Does that have to pH b at AI story?
Speaker 2: It certainly doesn't hurt.
Speaker 13: I think companies that have AI exposure credible AI story
Speaker 13: are certainly in a very different situation when it comes
Speaker 13: to IPO demand. If you look at deals this year
Speaker 13: to come to mind both successes Reddit and a Steri
Speaker 13: Labs march IPOs Astera was a pure play AI narrative
Speaker 13: and Reddit was a complimentary AI narrative.
Speaker 2: They're up sixty to eighty percent.
Speaker 13: But irrespective of whether or not you have a credible
Speaker 13: AI story, if you're a CEO, if you're a founder
Speaker 13: thinking about growing public in the next two to three years,
Speaker 13: I think the things that really matter identifying partners that
Speaker 13: you can see yourself growing with, building a robust finance function,
Speaker 13: and identifying the KPIs that are going to drive value
Speaker 13: not only today but going forward always going to be
Speaker 13: public market demand AI or not for businesses that have
Speaker 13: durable growth, strong unit economics, and a MINUSIGHTE on free
Speaker 13: cash flow.
Speaker 10: Does that also ring true in the Series A Series
Speaker 10: B Space in the moment back how much you looking
Speaker 10: at the public valuations and having to either downround it
Speaker 10: or actually a company is managing to grow into their
Speaker 10: valuations in that stage.
Speaker 12: Oh for our for our companies. So for us, we're
Speaker 12: early growth, so we're Series A and B when the
Speaker 12: companies have a product we can get our hands on,
Speaker 12: and then what we're really good at is helping them
Speaker 12: scale and develop.
Speaker 11: Their go to market and that like a strategic consultant.
Speaker 12: Just like you said, companies now really, especially the experienced CEOs,
Speaker 12: more than ever, are looking for investors, whether it be
Speaker 12: my stage or ors that can really be a partner
Speaker 12: with them and help them strategically go through the process right.
Speaker 12: And so it's very important for us that you know,
Speaker 12: I always tell founders they need to know where they
Speaker 12: would land the plane if they had to, right.
Speaker 11: And how that would work.
Speaker 12: And so we work very early on and like what
Speaker 12: would it mean to be profitable?
Speaker 11: What people in our ecosystem do?
Speaker 12: We need to actually partner with very early and we
Speaker 12: encourage our founders to go out and do that years
Speaker 12: before the IPO word even comes into their into their
Speaker 12: board deck, you know, to really think outside of their
Speaker 12: existing company and think very strategically.
Speaker 4: Rebecca.
Speaker 10: On that note, how often are those partnerships becoming MNA
Speaker 10: opportunities rather than actually going public vira Ipo.
Speaker 12: Well, and MNA opportunity almost always comes from a partnership.
Speaker 12: It almost never comes from a cold start in a
Speaker 12: sale process. And just last year a case text was
Speaker 12: bought by Thompson Reuters right for six hundred and fifty million, biginning,
Speaker 12: playing big probably I would say the most still the
Speaker 12: most robust implementation of GPT four that exist, and they
Speaker 12: did that because of partnership opportunities, both with all of
Speaker 12: the AILM players. They've been in that space for a decade, right,
Speaker 12: so they were they had the sandbox of GPT four
Speaker 12: in July twenty two, and that comes from these really
Speaker 12: strategic outreach outreach emotions that they did, and then Thomson
Speaker 12: Reuters knew them well just because of you know, their
Speaker 12: outreach they had done and the partnerships they'd done.
Speaker 10: This in the ecosystem, what's interesting is we're seeing some
Speaker 10: rather novel types of partnerships and normal types of M
Speaker 10: and A actually going from at the moment, Nick, I mean,
Speaker 10: you're in core weave. As we mentioned, they're trying to
Speaker 10: acquire an asset at the moment, but more than looking
Speaker 10: at the large language model plays open AI having relationships
Speaker 10: with Microsoft and others, but then you're also seeing anthropic
Speaker 10: being funded by Google and Amazon and having partnerships. Then
Speaker 10: you get acquihires like we've just seen in Inflection.
Speaker 12: I think it's called AI money laundering is one of
Speaker 12: the posts that came out.
Speaker 11: Right, I love that item.
Speaker 12: She said, there were some there were some you know
Speaker 12: articles out there about that that were pretty interesting.
Speaker 10: Actually, what would you say of these partnerships and M
Speaker 10: and A opportunities of this at the later stage.
Speaker 13: Yeah, I think look in aggregate it speaks to how
Speaker 13: integral these smaller private players are to hyper scale AI
Speaker 13: platforms and offering end to end solutions and capabilities to
Speaker 13: their customers. As it relates to the Inflection and Microsoft,
Speaker 13: I think it also speaks to the regulatory climate, right
Speaker 13: that was positioned and structured as an investment to license
Speaker 13: their model. You're also seeing a pickup in deal terms,
Speaker 13: you know, regulatory break freeze and the like. It's going
Speaker 13: to be harder for big tech to do big M.
Speaker 3: And A.
Speaker 11: Is it regulatory well, And we saw that too with
Speaker 11: case Tex.
Speaker 12: I mean, Thomson Reuters came out just months beforehand and
Speaker 12: said that AI would completely disrupt their entire business, and
Speaker 12: they acquired case tax and case tex by the way,
Speaker 12: I already had ten thousand of their own.
Speaker 11: Users, but they needed.
Speaker 12: That experience in that platform really for their business going forward.
Speaker 12: And I think we're going to see more and more
Speaker 12: tech M and A or for that reason from these
Speaker 12: very big players.
Speaker 10: Interesting, let's use case text as a case study, because
Speaker 10: you what wrote the check into that in twenty sixteen.
Speaker 10: So this isn't an overnight success. But we do feel
Speaker 10: that general to AI has sprung off out of nothing,
Speaker 10: and so I mean there's a fight to get into
Speaker 10: these companies and valuations that just feel so extreme. How
Speaker 10: are you rationalizing what is a good AI opportunity or not?
Speaker 11: Yeah, no, it's a great question.
Speaker 12: So we've been in let's say, not jenab Ai machine
Speaker 12: learning since we did theory when we're the first investors there,
Speaker 12: and then we've had a number of outcomes including figure
Speaker 12: eight Luminar innai. And you know, although it feels like
Speaker 12: it came out overnight, right and really the algorithms started
Speaker 12: like twenty seventeen and so the companies that were best
Speaker 12: positioned to take advantage of GPT four were companies that
Speaker 12: were already in the space. I mean, case texts because
Speaker 12: they were taking the place of a legal counsel had
Speaker 12: to be really the bleeding edge of because they were
Speaker 12: writing text right and so they had access into all
Speaker 12: of that, and it was an evolution over time. But
Speaker 12: I've got to tell you GPT four was just like
Speaker 12: a light switch. And the best comp and explanation I
Speaker 12: have is the case text team had tried to pass
Speaker 12: the California Bar with GPT three point five and the
Speaker 12: best they could ever get it to do was roughly
Speaker 12: thirty percent, you know, score pathetic, although the California State
Speaker 12: Bar and the average of sixty eight so also not great.
Speaker 11: Thanks the excelloise exactly.
Speaker 12: But when they put GPT four against it, it was
Speaker 12: ninety four percent, which was better than the lawyers.
Speaker 11: And that was in a very very short period of time.
Speaker 12: So I think we just saw this step change incredibly suddenly,
Speaker 12: and the company's best position to take advantage of it
Speaker 12: were companies like a ship, they already in steerage and
Speaker 12: momentum going into it, and they could pick up the
Speaker 12: technology and plug it into their existing systems and customer
Speaker 12: base rapidly.
Speaker 10: Look, it was a light switch, and it was so
Speaker 10: a light switch for many a market valuation. And we
Speaker 10: talk about Nvidia day in, day out, now more than
Speaker 10: three trillion. I mean it was at one trillion when
Speaker 10: we started the year. I mean, this is a phenomenal
Speaker 10: rate of growth. Nick, have you seen equivalents of this?
Speaker 10: How do you explain this to the LPs coming into
Speaker 10: your fund as to what the opportunity is for market
Speaker 10: capitalization growth?
Speaker 2: Yeah?
Speaker 13: I think if you zoom out and you put this
Speaker 13: into context, from twenty twelve to twenty twenty one, on
Speaker 13: the back of extraordinarily low rates, you had USVC investment
Speaker 13: grow eightfold. It was three hundred and thirty billion and
Speaker 13: twenty one. You had more unicorns created in twenty twenty
Speaker 13: one than you had in the prior five years combined.
Speaker 13: So there are a number of companies that have been
Speaker 13: over capitalized, if you will, at a different cost of capital,
Speaker 13: yesterday's cost of when it was Yeah, about half of
Speaker 13: the unicorns last raised when rates were below one percent. Well,
Speaker 13: so those valuations, while stale, can persist as long as
Speaker 13: cash burn and cash runways permit. There's some good data
Speaker 13: that's come out recently. They would suggest that about half
Speaker 13: of the seven hundred and forty unicorns in the US
Speaker 13: will need to raise by December. So I think it's
Speaker 13: a question of when, not if.
Speaker 10: And are they rebecca the right ones to be betting
Speaker 10: if they're running out of cash, but they have valuations
Speaker 10: that I mean need to be downgraded. Who are you
Speaker 10: looking at that designing the public market but just can't
Speaker 10: at the last round that they.
Speaker 12: Raised that I see, I'm sorry, And yeah, So companies
Speaker 12: that are in this situation right are going to face
Speaker 12: just really one of two consequences or three. Unfortunately, one
Speaker 12: they take their medicine and they take a massive down
Speaker 12: round and hopefully the investors are on board with a
Speaker 12: complete recapitalization which restructures the entire company.
Speaker 11: And that's one option.
Speaker 12: And we're seeing thirty percent of company or fundraising right
Speaker 12: now on that later stage actually be down round and
Speaker 12: largely inside lead are disclosed. The ones that are disclosed, yes,
Speaker 12: other things, other are ways they are doing this. I
Speaker 12: would say it's much bigger than that. People are just doing.
Speaker 11: You know, a note document right which is not disclosed
Speaker 11: explain that sort of bridge fund. Yeah, so it's bridge funny.
Speaker 12: So they do it instead of doing like an equity
Speaker 12: financing and disclosing that, they do more of a safe
Speaker 12: note or a bridge of some sort where it's really
Speaker 12: sort of you know, debt capital going into it more
Speaker 12: or less, but will take the form of equity. And
Speaker 12: then the other option is they sell the company to
Speaker 12: a public company.
Speaker 11: Now the problem with that is these.
Speaker 12: Companies having incredibly high burn rates, typically not ours, because
Speaker 12: we try to manage that very well because we've seen
Speaker 12: the show a couple of times. But you know, company
Speaker 12: is not going to acquire a company for what the house,
Speaker 12: you know, is burning five million dollars a month, which some.
Speaker 11: Of these still are.
Speaker 12: And then the third option is sort of the least favorable,
Speaker 12: as they just close, they go out and kind of
Speaker 12: quietly quietly go.
Speaker 11: Away, right, a big company camp quietly go away. No.
Speaker 12: I mean we saw Convoy, you know, not that long ago,
Speaker 12: you know, go to zero overnight, and so I think
Speaker 12: we'll see more of that.
Speaker 10: What we might see though, is actually companies taking their
Speaker 10: medicine nick and deciding to go public at a slightly
Speaker 10: different valuation than was the previous and we've actually seen
Speaker 10: that already in Stacar swallowed that bitter pill came to
Speaker 10: the market and well, people my question as to how
Speaker 10: well they've traded since. But I'm interested as to how
Speaker 10: much you see the opportunity for companies to make that
Speaker 10: bold step to decide to go public, to become a
Speaker 10: publicly traded company with all the scrutiny that goes with it.
Speaker 13: Yeah, I think there's certainly pros and cons to it.
Speaker 2: Look, it's a long road.
Speaker 13: I don't think you know an IPO is the end
Speaker 13: in itself. It's a milestone on a multi year journey,
Speaker 13: and ultimately, you know their success will be proven out
Speaker 13: in public markets as they execute. There has been a
Speaker 13: very acute, if not my opic, focus on headline valuations,
Speaker 13: but I think slowly you're you're starting to see people
Speaker 13: reorient and valuation expectations recalibrate.
Speaker 4: How long did you.
Speaker 10: Stay in a company once it's going public?
Speaker 13: Yeah, it's hard to generalize, but look, we like to
Speaker 13: think about businesses in terms of years, not quarters, and
Speaker 13: duration is a competitive advantage for us. It's a competitive
Speaker 13: advantage for CEOs as they try to build something enduring.
Speaker 10: How painful is that? And I'm going to bring up
Speaker 10: a relatively interesting case study of yours. You made your
Speaker 10: name in many ways, some really incredible bets you made
Speaker 10: with Soros and the companies that then went public, one
Speaker 10: of them being Rivian. Now today is a very good
Speaker 10: news day for Rivian shares a popping about forty percent
Speaker 10: last time. I look, because they've done a deal with VW,
Speaker 10: but it's been pretty painful in the interim. How long
Speaker 10: did you understand that, Look, you've got to stay with
Speaker 10: this company for the long term. RJ is going to
Speaker 10: get us there, but it's not an overnight success.
Speaker 2: Yeah.
Speaker 13: I think, Look, you're going to find out what type
Speaker 13: of investors you have when things are not going well.
Speaker 13: I think that the smart CEOs, the right founders appreciate
Speaker 13: the value of staying power. There will be missteps, Inevitably,
Speaker 13: there will be execution faults, but I think the onus
Speaker 13: is on those companies to communicate in a way where
Speaker 13: they're straightforward and they're clear and they're transparent. That's what
Speaker 13: being a public company CEO entails. CFO two part.
Speaker 12: And part of your your staying power probably is driven
Speaker 12: by really knowing the company well and the market and
Speaker 12: having a really informed pisis about how.
Speaker 11: You're seeing it.
Speaker 12: And I think that's important for any investor, you know,
Speaker 12: for for a CEO, to really find an investor that
Speaker 12: understands that space, that does their own work, that actually
Speaker 12: goes out and talks to the consumers of that product,
Speaker 12: I think is so important. And so a few investors
Speaker 12: actually do that. But that's really what builds conviction for us.
Speaker 12: Either early stage or later stage. We can often sell really,
Speaker 12: you know, earlier, or we have to make.
Speaker 11: The choice, you know, with case text with figure eight with.
Speaker 12: Gabby, with you know, with with Future Advisor. You know,
Speaker 12: we ought we had term sheets to finance it. And
Speaker 12: the question is do we finance it and keep going or.
Speaker 11: Do we sell? And this is this price the right price?
Speaker 12: And that's that's a question that you can only answer
Speaker 12: if you do the work, just like when you're a
Speaker 12: public market investor. And it's interesting that, you know, we
Speaker 12: do see the bad behavior now of investors that were
Speaker 12: sort of you know, tourist investors that came in and
Speaker 12: thought it was just you know, you know, throw in
Speaker 12: some money and cook.
Speaker 11: Right, and it's not. It takes a lot of work
Speaker 11: and you have to really enjoy the.
Speaker 10: Job talking of well startups in actually the going public space.
Speaker 10: I just got a quick poll for you. You've only
Speaker 10: got a couple of minutes, but you've got a couple
Speaker 10: of minutes to have an audience participation moment. I want
Speaker 10: to ask you a question and what you thought about
Speaker 10: this Texas exchange, which, of course I think Citadel's behind
Speaker 10: it some other key players. Do you think the newly
Speaker 10: announced Texas Stock Exchange could potentially compete in the New
Speaker 10: York Stock Exchange in the NASDAC. I want you to
Speaker 10: get voting, use your phones, use the QR code. I
Speaker 10: oh no, if you think it's not a chance, we
Speaker 10: could see some market share move southwest. Companies should welcome
Speaker 10: the competition.
Speaker 11: And it's interesting.
Speaker 10: We've got a few companies, big privately run companies and
Speaker 10: publicly run companies moving to Texas or Musks behind.
Speaker 11: A lot of them.
Speaker 10: And I'm sure he might well be a player of
Speaker 10: taking companies public over there. But Nick, is it good
Speaker 10: to have competition in the exchange space as well as
Speaker 10: competition and actually companies going public?
Speaker 13: Look, I think innovation, you know, markets, venues, structures, this
Speaker 13: is all good for markets, it's good for investors, it's
Speaker 13: healthy for companies. I think what's interesting about the Texas
Speaker 13: Stock Exchange it's twofold, it's it's one in attempt to
Speaker 13: provide public capital to private companies, but it also speaks
Speaker 13: to some of the onerous burdens of being a public
Speaker 13: company from a regulatory standpoint on the NYC or NASDAQ.
Speaker 11: Great, and sometimes you need that safety net there.
Speaker 10: Interestingly, I think we have a few New Yorkers in
Speaker 10: the run forty percent. The majority of that is not
Speaker 10: a chance the company is a going to move to
Speaker 10: Texas to go public. But just as we wind up
Speaker 10: this conversation, I want you both to give a piece
Speaker 10: of advice to those who are looking at doing their
Speaker 10: due diligence, who are wanting to perhaps either get into
Speaker 10: the private space or into indeed companies that are about
Speaker 10: to IPO. What due diligence should they be doing. How
Speaker 10: to ensure that they're not tourists as you labeled them.
Speaker 11: Rebecca, I think you have to talk to the customers.
Speaker 12: You have to really understand why the customer, whether it's
Speaker 12: consumer or enterprise, why the customer is using that product
Speaker 12: and what their go to market motion truly is significant scale.
Speaker 10: It might be easier for a riven or an instacart
Speaker 10: consumer than perhaps some of the more deep in the
Speaker 10: weeds ai trades. But Nick, as you're out there sort
Speaker 10: of crossing the t's donning eyes on LP's committing to
Speaker 10: your fund, what's your piece of advice that you're saying
Speaker 10: to them to commit capital you? What would you say
Speaker 10: for their story you're about to tell?
Speaker 13: Well, look, I think everything is downstream of competitive advantage,
Speaker 13: and that's true for investors, it's true for companies. Aware
Speaker 13: of your circle of competence and kind of sticking to
Speaker 13: that is the onness is on investors to do so.
Speaker 13: If you don't have an edge, shouldn't be participating.
Speaker 10: Keep bringing your edges to Bloomberg, keep coming on Bloomberg
Speaker 10: Technology and across all of our bandwidth and our platforms.
Speaker 10: It's been enjoyed to be with both of you in
Speaker 10: front of this wonderful audience today.
Speaker 11: Thank you for your participation as well. We love it.
Speaker 10: We want to thank Rebecca Linn and Nick Lancaster.
Speaker 11: Thank you very much.
Speaker 3: Indeed, thank you Carelin That was Canvas Ventures. Rebecca Lynn
Speaker 3: and lecos Goobal Management. Nick laster along with our own
Speaker 3: Caroline Hyde. Let's get back very quickly and check on
Speaker 3: shares of Rivian. Actually, we've paired much of the incredible
Speaker 3: gain we saw in reven shares after an up to
Speaker 3: five billion dollar deal JV formation with Volkswagen giving Volkswagen
Speaker 3: access Serrivian software in tech. That's a two day chart,
Speaker 3: but in the moment we're up around twenty seven percent.
Speaker 3: Even so, shares trading at their highest level since February.
Speaker 3: Of course, this is a stock that's had a precipitous
Speaker 3: plumbs decline. Since it's November twenty twenty one, IPO will
Speaker 3: continue to track it. That does it though, for this
Speaker 3: edition of Bloomberg Technology. But this Friday, we have Vivek
Speaker 3: Ramaswami joining me here on Bloomberg Technology. Following the presidential debates.
Speaker 3: This is interesting. I've reported that Vivek was an intermediary,
Speaker 3: a conduit between Elon Musk re engaging with former President
Speaker 3: Donald Trump. I'm going to ask Vivec about that, and
Speaker 3: I'm going to ask him about his ambitions for a
Speaker 3: position in government should former President Trump gain reelection. This
Speaker 3: was a pretty pretty big show that we had today.
Speaker 3: We went really big on the Rivian story. We had
Speaker 3: fantastic guest in Coxword's Moses, but we also can recap
Speaker 3: on the podcast. Find it on the Terminal online, Apple, Spotify,
Speaker 3: and also on iHeart on the Bloomberg platforms. Gosh, what
Speaker 3: a week has been. Stay with us. This is Bloomberg technology.
Speaker 2: He didn't hate it and he didn't help it.
Speaker 10: But he didn't help it.