1
00:00:01,440 --> 00:00:02,160
Speaker 1: From Marhard.

2
00:00:02,320 --> 00:00:06,760
Speaker 2: We're Innovation, Money and Power Collie in Silicon Valley, NBN.

3
00:00:07,080 --> 00:00:11,120
Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

4
00:00:24,720 --> 00:00:27,600
Speaker 2: I'm Caroline Hyde Bloomberg's worldtad quarters in New York, and

5
00:00:27,680 --> 00:00:30,520
Speaker 2: I'm Med Ludlow in San Francisco. This is Bloomberg Technology

6
00:00:30,640 --> 00:00:31,640
Speaker 2: coming up the US.

7
00:00:31,640 --> 00:00:35,519
Speaker 4: It plans titan measures against China to restrict its access

8
00:00:35,520 --> 00:00:38,320
Speaker 4: to advanced chip technology. We're going to break down the

9
00:00:38,360 --> 00:00:40,960
Speaker 4: details and the market implications.

10
00:00:40,840 --> 00:00:43,559
Speaker 2: And we have the latest updates from the Israel Hamass

11
00:00:43,640 --> 00:00:47,120
Speaker 2: war and discuss the role social media plays in delivering

12
00:00:47,240 --> 00:00:48,800
Speaker 2: up to date and accurate news.

13
00:00:48,960 --> 00:00:50,919
Speaker 4: Plus, we're going to kick off the coverage of New

14
00:00:51,040 --> 00:00:53,920
Speaker 4: York Tech Week as industry titans gather in the Big

15
00:00:53,920 --> 00:00:57,160
Speaker 4: Apple for a full week of panels, events and much more.

16
00:00:57,480 --> 00:01:03,120
Speaker 2: The top story is Bloomberg reporting expanding technology export curbs

17
00:01:03,320 --> 00:01:06,560
Speaker 2: to China in the semiconductor's space. It had a pronounced

18
00:01:06,600 --> 00:01:09,560
Speaker 2: impact in markets in Asia and Europe, ovin Night, also

19
00:01:09,600 --> 00:01:11,800
Speaker 2: in US pre market. Actually a lot of those names

20
00:01:11,880 --> 00:01:14,800
Speaker 2: are now markedly higher. But pay attention to the chip

21
00:01:14,840 --> 00:01:17,880
Speaker 2: equipment makers because that is a focus of these curves.

22
00:01:17,959 --> 00:01:21,000
Speaker 2: Let's get the specifics and bring in Bloomberg's Mackenzie Hawkins,

23
00:01:21,000 --> 00:01:24,320
Speaker 2: one of the reporters on that Bloomberg exclusive and Mackenzie

24
00:01:24,319 --> 00:01:27,200
Speaker 2: Bloomberg sources are telling us these chip curbs are going

25
00:01:27,280 --> 00:01:29,800
Speaker 2: to be expanded, how so in what ways?

26
00:01:31,760 --> 00:01:34,840
Speaker 5: So these chip curbs are building on initial restrictions that

27
00:01:34,880 --> 00:01:38,080
Speaker 5: the Biden administration posed in October of last year, and

28
00:01:38,120 --> 00:01:41,679
Speaker 5: there's a couple venues for the tightening. So first, we're

29
00:01:41,680 --> 00:01:45,319
Speaker 5: going to see some additional restrictions on graphics chips sales

30
00:01:45,319 --> 00:01:49,680
Speaker 5: to Chinese companies and advanced manufacturing equipment sales to Chinese companies.

31
00:01:50,040 --> 00:01:53,600
Speaker 5: And we're also going to see some tightening on potential

32
00:01:53,640 --> 00:01:57,880
Speaker 5: attempts by Chinese companies to avoid country specific restrictions by

33
00:01:57,960 --> 00:02:00,880
Speaker 5: routing their shipments through other countries. And the last thing

34
00:02:00,880 --> 00:02:03,800
Speaker 5: to keep an eye on is adding Chinese chip design

35
00:02:03,880 --> 00:02:07,560
Speaker 5: firms to a US trade restriction list that basically requires

36
00:02:07,600 --> 00:02:10,840
Speaker 5: overseas manufacturers to get a license from the US government

37
00:02:10,880 --> 00:02:12,680
Speaker 5: before filling orders from those companies.

38
00:02:13,280 --> 00:02:17,520
Speaker 4: McKenzie, what prompted this tightening? Is it well the Republicans

39
00:02:17,720 --> 00:02:21,000
Speaker 4: or is it Huawei? And late more recent events that

40
00:02:21,080 --> 00:02:23,079
Speaker 4: shows that maybe some of these cubs just all working.

41
00:02:24,960 --> 00:02:27,840
Speaker 5: So the US announced as initial rule in October of

42
00:02:27,919 --> 00:02:29,919
Speaker 5: last year and took a couple of months to get

43
00:02:29,960 --> 00:02:33,760
Speaker 5: key allies, particularly the Netherlands and Japan on board, and

44
00:02:33,800 --> 00:02:35,919
Speaker 5: they've been working on a final version of that rule

45
00:02:36,000 --> 00:02:38,280
Speaker 5: for a while. So this is not to be interpreted

46
00:02:38,280 --> 00:02:41,600
Speaker 5: as a reaction to the huge tech breakthrough in China

47
00:02:41,639 --> 00:02:44,800
Speaker 5: in August when Huawei released a smartphonem powered by an

48
00:02:44,880 --> 00:02:48,920
Speaker 5: advanced chip. But that has pretty much defined the conversation

49
00:02:49,000 --> 00:02:51,320
Speaker 5: in US China tech relations in the month and a

50
00:02:51,320 --> 00:02:54,040
Speaker 5: half since, and we'll be looking to the administration to

51
00:02:54,080 --> 00:02:57,600
Speaker 5: see what actions specifically they might take on Huawei and

52
00:02:57,600 --> 00:02:58,959
Speaker 5: its chip making partner.

53
00:02:58,680 --> 00:03:02,280
Speaker 4: Snick indeed keeping a close eye on the implications, and

54
00:03:02,320 --> 00:03:05,040
Speaker 4: so too will of course, the Chinese, who have notably

55
00:03:05,080 --> 00:03:07,840
Speaker 4: said that they don't want this to be weaponized or

56
00:03:07,880 --> 00:03:12,240
Speaker 4: indeed politicized when it comes to technology and trade. Mackenzie Hawkins,

57
00:03:12,400 --> 00:03:14,760
Speaker 4: great bit of reporting, me, thank you. Let's continue the conversation.

58
00:03:14,840 --> 00:03:17,280
Speaker 4: Joanne Phoenie's with US partner and portfolio manager at Advisor's

59
00:03:17,320 --> 00:03:20,680
Speaker 4: Capital Management, with deep knowledge expertise when it comes to

60
00:03:20,760 --> 00:03:26,600
Speaker 4: semiconductors in the landscape and ultimately, is this ever an

61
00:03:26,600 --> 00:03:30,840
Speaker 4: efficient way of trying to curtail what is ultimately an

62
00:03:30,840 --> 00:03:35,160
Speaker 4: ability to make it home really advance chips in China.

63
00:03:36,720 --> 00:03:39,680
Speaker 6: It's never going to be efficient, you know, let's not

64
00:03:40,240 --> 00:03:43,119
Speaker 6: try to guess the ultimate goals of the US policy.

65
00:03:43,840 --> 00:03:47,080
Speaker 6: One effect likely though, is that it will slow down

66
00:03:48,080 --> 00:03:52,800
Speaker 6: China's ability to deploy really advanced chips for use in

67
00:03:52,920 --> 00:03:55,000
Speaker 6: AI oriented servers.

68
00:03:55,520 --> 00:03:58,000
Speaker 7: So it will slow China down now.

69
00:03:58,160 --> 00:04:00,680
Speaker 6: In the meantime, though it's harmful to to the US

70
00:04:00,800 --> 00:04:03,600
Speaker 6: companies that want to sell China those chips, you know,

71
00:04:04,240 --> 00:04:07,120
Speaker 6: potentially like in video that Fortunately, we're in a period

72
00:04:07,160 --> 00:04:11,000
Speaker 6: of time when there's such strong demand for AI capabilities

73
00:04:11,040 --> 00:04:13,960
Speaker 6: in servers that even if in Vidia loses some sales

74
00:04:13,960 --> 00:04:17,479
Speaker 6: in China because of more restrictions, it will likely be

75
00:04:17,520 --> 00:04:19,760
Speaker 6: able to sell them in the United States or someplace

76
00:04:19,800 --> 00:04:20,560
Speaker 6: else in the world.

77
00:04:21,440 --> 00:04:22,760
Speaker 7: So it'll slow China down.

78
00:04:22,800 --> 00:04:25,239
Speaker 6: But the horse has really left the barn in terms

79
00:04:25,320 --> 00:04:29,360
Speaker 6: of the ability of China to ultimately produce advanced chips.

80
00:04:29,400 --> 00:04:31,679
Speaker 7: They just can't do it in a lot of volume

81
00:04:31,760 --> 00:04:32,200
Speaker 7: right now.

82
00:04:32,520 --> 00:04:35,320
Speaker 6: But ultimately, over some years, you know, they'll be able

83
00:04:35,360 --> 00:04:39,240
Speaker 6: to do this because chip technology, you know, has reached

84
00:04:39,240 --> 00:04:42,120
Speaker 6: sort of the limits mostly of Moore's law, and so

85
00:04:42,200 --> 00:04:45,000
Speaker 6: it's hard for you know, our companies to stay ahead

86
00:04:45,320 --> 00:04:48,240
Speaker 6: when all China has to do is copy what we've

87
00:04:48,279 --> 00:04:48,880
Speaker 6: done so far.

88
00:04:50,120 --> 00:04:51,240
Speaker 1: Juanne, good to see you.

89
00:04:51,320 --> 00:04:53,320
Speaker 2: We're just showing the names actually now moving to the

90
00:04:53,400 --> 00:04:56,359
Speaker 2: upside in video and a m D on the GPU

91
00:04:56,440 --> 00:04:59,719
Speaker 2: or graphics side, and then the chip equipment makers LAMB

92
00:05:00,040 --> 00:05:04,599
Speaker 2: PLA also positive. You said that this won't slow China down,

93
00:05:05,320 --> 00:05:08,240
Speaker 2: but there's a refocus on the chip equipment makers, in

94
00:05:08,279 --> 00:05:12,960
Speaker 2: particular with those US based companies with exposure to China.

95
00:05:13,120 --> 00:05:15,120
Speaker 2: Is this more of a concern now than it was

96
00:05:15,160 --> 00:05:16,000
Speaker 2: to you yesterday?

97
00:05:18,440 --> 00:05:21,400
Speaker 6: Yeah, So you know, we've been avoiding exposure to most

98
00:05:21,400 --> 00:05:23,479
Speaker 6: of the equipment guys for a while because of these

99
00:05:23,520 --> 00:05:25,960
Speaker 6: tensions with China, and so you know, our position on

100
00:05:26,000 --> 00:05:29,120
Speaker 6: that hasn't really changed. We have some selective exposure, but

101
00:05:29,200 --> 00:05:32,440
Speaker 6: not to the major players like A Lamber applied. And

102
00:05:32,880 --> 00:05:35,520
Speaker 6: I think what happened earlier, right when when China saw

103
00:05:35,560 --> 00:05:39,960
Speaker 6: this coming, you know, and saw the timing of these restrictions,

104
00:05:40,000 --> 00:05:43,160
Speaker 6: they actually imported a boatload of equipment.

105
00:05:43,320 --> 00:05:45,880
Speaker 7: So they're pretty well positioned. You know. Again, it's going

106
00:05:45,960 --> 00:05:48,080
Speaker 7: to slow them down in terms of deploying.

107
00:05:47,640 --> 00:05:50,600
Speaker 6: Really high end AI based servers because they're not going

108
00:05:50,600 --> 00:05:52,440
Speaker 6: to be able to get all those chips, but they

109
00:05:52,480 --> 00:05:55,120
Speaker 6: have a lot of equipment from lithography out of you know,

110
00:05:55,279 --> 00:05:58,640
Speaker 6: the metalin from ASML to the etching machines to the

111
00:05:58,680 --> 00:06:01,280
Speaker 6: deposition machines, right so they can do an awful lot

112
00:06:01,360 --> 00:06:03,640
Speaker 6: right now with the equipment that they have. There are

113
00:06:03,640 --> 00:06:06,520
Speaker 6: always ways to get the smaller and smaller future sizes

114
00:06:06,800 --> 00:06:10,560
Speaker 6: to those more advanced chips using the older technology. It

115
00:06:10,680 --> 00:06:13,640
Speaker 6: just takes many more steps to get there. It's much

116
00:06:13,680 --> 00:06:16,680
Speaker 6: more expensive. So your question earlier ed, is it efficient.

117
00:06:17,000 --> 00:06:18,960
Speaker 6: It's not going to be efficient for China to make

118
00:06:19,000 --> 00:06:20,960
Speaker 6: these advanced chips, but they're going to be able to

119
00:06:21,000 --> 00:06:24,760
Speaker 6: make almost everything with the equipment they have except for

120
00:06:24,839 --> 00:06:27,279
Speaker 6: the most the very most advanced ships. And that's where

121
00:06:27,440 --> 00:06:29,839
Speaker 6: US policy, I think wants to be binding, and it

122
00:06:29,880 --> 00:06:32,520
Speaker 6: will be for a while until China can make further

123
00:06:32,560 --> 00:06:35,920
Speaker 6: advances in their own deployment of equipment or refinement of

124
00:06:35,960 --> 00:06:37,360
Speaker 6: the equipment that they already have in place.

125
00:06:38,000 --> 00:06:41,560
Speaker 2: Bloomberg's reporting that these expanded restrictions could come early this week.

126
00:06:41,600 --> 00:06:44,240
Speaker 2: For what it's worth, the US Commisces Department and National

127
00:06:44,240 --> 00:06:47,039
Speaker 2: Security Council declined to comment on the story, but a

128
00:06:47,160 --> 00:06:52,360
Speaker 2: Chinese Foreign Ministry spokeswoman called this the US politicizing, instrumentalizing,

129
00:06:52,440 --> 00:06:56,240
Speaker 2: and weaponizing trade and tech issues. Our colleague me and

130
00:06:56,360 --> 00:06:58,800
Speaker 2: Mackenzie Hawkins pointed out that this is not sort of

131
00:06:59,120 --> 00:07:02,000
Speaker 2: an escalation from the US, It's a rethink of a

132
00:07:02,080 --> 00:07:05,440
Speaker 2: year long policy. Where do you stand on what this

133
00:07:05,600 --> 00:07:07,080
Speaker 2: is or is not the US doing?

134
00:07:08,720 --> 00:07:10,240
Speaker 6: So you're asking me to sort of put on a

135
00:07:10,240 --> 00:07:11,160
Speaker 6: policy walk head.

136
00:07:11,520 --> 00:07:13,880
Speaker 7: I'll do my best. I mean, clearly, the US wants

137
00:07:13,880 --> 00:07:14,480
Speaker 7: to slow.

138
00:07:14,280 --> 00:07:18,720
Speaker 6: Down China's ability to use AI and to develop AI applications,

139
00:07:18,720 --> 00:07:21,760
Speaker 6: particularly in the military, and so to the extent that

140
00:07:21,800 --> 00:07:24,360
Speaker 6: the US can succeed in that by restricting their access

141
00:07:24,400 --> 00:07:27,160
Speaker 6: to these most advanced chips and the equipment to make

142
00:07:27,240 --> 00:07:30,760
Speaker 6: the most advanced chips, the US will be successful. It's

143
00:07:30,800 --> 00:07:33,960
Speaker 6: not the first time that trade policy has been used

144
00:07:34,000 --> 00:07:38,840
Speaker 6: for things other than you know, tamping down illegal trade.

145
00:07:38,880 --> 00:07:41,840
Speaker 6: I mean, clearly this is a political objective, not an

146
00:07:41,920 --> 00:07:46,520
Speaker 6: unfair trade practices response, and so you know, it's certainly

147
00:07:46,560 --> 00:07:51,680
Speaker 6: not something that's probably authorized under WTO rules. Nevertheless, under

148
00:07:51,800 --> 00:07:55,800
Speaker 6: national security reasons, clearly the US is pursuing the strategy

149
00:07:55,880 --> 00:07:57,800
Speaker 6: and it will be effective. It'll just slow China down.

150
00:07:57,960 --> 00:08:00,320
Speaker 6: But as many have been saying, we have also it's

151
00:08:00,360 --> 00:08:04,880
Speaker 6: only going to accelerate China's own investments in developing their

152
00:08:04,920 --> 00:08:07,600
Speaker 6: own capabilities. Now, we think they're a long way off

153
00:08:07,840 --> 00:08:10,360
Speaker 6: from being able to replicate what ASML has done or.

154
00:08:10,280 --> 00:08:11,240
Speaker 7: What WEAM has done.

155
00:08:11,400 --> 00:08:16,600
Speaker 6: But again by repeating the processes that the intels and

156
00:08:16,680 --> 00:08:20,239
Speaker 6: ibms and global founderies and tsmcs of the world used,

157
00:08:20,560 --> 00:08:24,360
Speaker 6: SMICK can get to pretty close to some of the

158
00:08:24,360 --> 00:08:26,680
Speaker 6: most advanced chips, as they've shown in that Huawei chip

159
00:08:26,720 --> 00:08:27,240
Speaker 6: for example.

160
00:08:27,960 --> 00:08:30,760
Speaker 4: Joan, we ask you sometimes to put a policy hat on,

161
00:08:30,800 --> 00:08:32,680
Speaker 4: and to that point, do you try and take that

162
00:08:32,760 --> 00:08:35,600
Speaker 4: policy hat off when it comes to actually having exposure

163
00:08:35,640 --> 00:08:38,320
Speaker 4: to such companies? He said, how you've limited your exposure

164
00:08:38,320 --> 00:08:41,400
Speaker 4: to chip equipment makers because of some of the issues

165
00:08:41,480 --> 00:08:44,440
Speaker 4: with US and China. Well, what about an Nvidia that

166
00:08:44,480 --> 00:08:48,040
Speaker 4: at the moment can sacrifice Chinese sales? But ultimately do

167
00:08:48,120 --> 00:08:50,160
Speaker 4: you want to be out of companies that have such

168
00:08:50,200 --> 00:08:51,120
Speaker 4: exposure to China?

169
00:08:52,400 --> 00:08:52,600
Speaker 7: Yeah?

170
00:08:52,760 --> 00:08:55,679
Speaker 6: No, so right, So the investor hat, the portfolio manager hat,

171
00:08:55,720 --> 00:08:57,120
Speaker 6: requires that you look at policy.

172
00:08:57,240 --> 00:08:58,120
Speaker 7: Obviously, you need.

173
00:08:58,000 --> 00:09:01,280
Speaker 6: To handle have a little bit what is going to

174
00:09:01,280 --> 00:09:03,280
Speaker 6: be in the US interests, what they're going to try

175
00:09:03,320 --> 00:09:06,200
Speaker 6: to do, as well as sort of the economic outlook.

176
00:09:06,280 --> 00:09:08,400
Speaker 6: So you know, at ACM, at Advisor's Capital, what we

177
00:09:08,440 --> 00:09:11,720
Speaker 6: do is both the top down macro and political situation,

178
00:09:11,880 --> 00:09:14,040
Speaker 6: and we then build up the bottom up analysis of

179
00:09:14,120 --> 00:09:15,000
Speaker 6: companies by companies.

180
00:09:15,000 --> 00:09:17,199
Speaker 7: So in video is a great example, they have so.

181
00:09:17,280 --> 00:09:20,600
Speaker 6: Many different opportunities because demand is so strong right now

182
00:09:20,679 --> 00:09:23,080
Speaker 6: for AI capabilities in servers that.

183
00:09:23,160 --> 00:09:25,160
Speaker 7: We think if they lose a little bit from China,

184
00:09:25,400 --> 00:09:27,400
Speaker 7: they'll be able to make it up elsewhere. It looks

185
00:09:27,440 --> 00:09:28,280
Speaker 7: to us like.

186
00:09:28,280 --> 00:09:30,200
Speaker 6: They have kind of a waiting list, if you like,

187
00:09:30,640 --> 00:09:33,679
Speaker 6: of companies that would like their most advanced chips. So

188
00:09:33,880 --> 00:09:36,680
Speaker 6: you know, China could potentially hurt in the longer run

189
00:09:37,320 --> 00:09:40,520
Speaker 6: if China is able to replicate the level and quality

190
00:09:40,559 --> 00:09:44,080
Speaker 6: of chip that Invidia could otherwise supply. But if they can't,

191
00:09:44,080 --> 00:09:45,240
Speaker 6: and we don't think they'll be able to do that

192
00:09:45,240 --> 00:09:48,080
Speaker 6: for some years, China's going to have to be satisfied

193
00:09:48,120 --> 00:09:50,880
Speaker 6: with lower end graphics chips out of the likes of

194
00:09:50,960 --> 00:09:53,760
Speaker 6: Nvidia and amb So ultimately we don't think there's going

195
00:09:53,840 --> 00:09:57,000
Speaker 6: to be a big shift in spending by China, They're

196
00:09:57,040 --> 00:10:00,200
Speaker 6: going to have to be satisfied with lesser chips, even

197
00:10:00,240 --> 00:10:01,120
Speaker 6: more so than they were.

198
00:10:01,040 --> 00:10:03,120
Speaker 7: After last Octobers a level of.

199
00:10:03,120 --> 00:10:07,160
Speaker 6: Restrictions and Video will be able to sell again more

200
00:10:07,160 --> 00:10:11,559
Speaker 6: of its ultimately higher endships to US and European and

201
00:10:11,640 --> 00:10:15,160
Speaker 6: other Southeast Asian customers.

202
00:10:15,640 --> 00:10:19,120
Speaker 2: To FOMI partner and portfolio manager and advisors capital management,

203
00:10:19,120 --> 00:10:20,839
Speaker 2: but also just long, long time.

204
00:10:21,080 --> 00:10:23,320
Speaker 1: Researcher in the field of semiconductors. Thank you.

205
00:10:23,440 --> 00:10:26,560
Speaker 2: Speaking of and sticking with chips in Video's H one

206
00:10:26,679 --> 00:10:29,680
Speaker 2: hundred GPU has been one of the technology stories of

207
00:10:29,720 --> 00:10:32,559
Speaker 2: the year. Before the Israel hamass war broke out. The

208
00:10:32,679 --> 00:10:36,200
Speaker 2: chip giant had planned on holding its AI summit today

209
00:10:36,640 --> 00:10:39,960
Speaker 2: in Tel Aviv, with insight into its AI strategy expected,

210
00:10:40,000 --> 00:10:43,960
Speaker 2: but then canceled the event. Bloomberg Technology visited in VideA

211
00:10:44,240 --> 00:10:45,840
Speaker 2: and took a look at what the H one hundred

212
00:10:45,840 --> 00:10:48,720
Speaker 2: GPU used to train AI models looks like in the

213
00:10:48,760 --> 00:10:53,840
Speaker 2: real world. This is an individual H one hundred GPU

214
00:10:53,920 --> 00:10:57,520
Speaker 2: or graphics processing unit in Videa's AI accelerator, but in

215
00:10:57,559 --> 00:10:59,520
Speaker 2: reality it's not just a chip that comes out of

216
00:10:59,520 --> 00:11:01,840
Speaker 2: a plant. When we talk about the H one hundred

217
00:11:01,880 --> 00:11:07,520
Speaker 2: GPUs training AI models. We're likely talking about dgxh one hundred,

218
00:11:07,800 --> 00:11:12,400
Speaker 2: Nvidia's AI supercomputer. That's eight h one hundred GPUs combined,

219
00:11:12,440 --> 00:11:16,680
Speaker 2: capable of thirty two quadrillion floating point operations per second,

220
00:11:17,160 --> 00:11:20,560
Speaker 2: crazy computer performance. It's a server design, and this is

221
00:11:20,559 --> 00:11:22,520
Speaker 2: what it looks like under the lid. It starts with

222
00:11:22,559 --> 00:11:25,200
Speaker 2: an h one hundred GPU seen here in the form

223
00:11:25,280 --> 00:11:28,360
Speaker 2: of an SXM module. Eight individual sxms are topped with

224
00:11:28,440 --> 00:11:31,959
Speaker 2: heat six, designed to dissipate heat generated from running big

225
00:11:32,000 --> 00:11:35,880
Speaker 2: AI workloads. Those are connected on a single baseboard by interconnectors,

226
00:11:36,080 --> 00:11:39,280
Speaker 2: and that assembly alone weighs sixty pounds. Add CPUs and

227
00:11:39,320 --> 00:11:42,360
Speaker 2: other components, and a finished DGX system weighs almost three

228
00:11:42,440 --> 00:11:45,320
Speaker 2: hundred pounds. But the scale in the real world is

229
00:11:45,360 --> 00:11:48,600
Speaker 2: bigger still. Some of the most powerful large language models

230
00:11:48,679 --> 00:11:52,800
Speaker 2: are trained on the Nvidia DGX super Pod, that is

231
00:11:52,840 --> 00:11:56,600
Speaker 2: thirty two DGX eight one hundred systems combined into what's

232
00:11:56,600 --> 00:12:00,880
Speaker 2: called a scalable unit. At its absolute most mind modeling scale,

233
00:12:00,960 --> 00:12:04,960
Speaker 2: DGX Superpod can be up to sixty four scalable units.

234
00:12:05,200 --> 00:12:10,079
Speaker 2: That's more than sixteen thousand individual h one hundred GPUs

235
00:12:10,480 --> 00:12:14,960
Speaker 2: an AI company may use several superpods to train their LLLM.

236
00:12:15,240 --> 00:12:17,640
Speaker 2: In the end, the DGX infrastructure sent out to the

237
00:12:17,720 --> 00:12:22,600
Speaker 2: hyperscale cloud providers to put in their massive data centers.

238
00:12:23,960 --> 00:12:26,000
Speaker 2: I wanted to get my hands on an H one

239
00:12:26,040 --> 00:12:29,920
Speaker 2: hundred Caroline, but it isn't just this little chip. That's

240
00:12:29,960 --> 00:12:31,559
Speaker 2: the reality of what we're talking about.

241
00:12:31,640 --> 00:12:34,360
Speaker 8: You happen to do squatz squats to be able.

242
00:12:34,200 --> 00:12:36,960
Speaker 2: To I just wanted to demonstrate that in the real

243
00:12:37,000 --> 00:12:40,280
Speaker 2: world sometimes you have to deadlift what we're talking about.

244
00:12:40,880 --> 00:12:42,280
Speaker 2: And I've already got a lot of flak for that

245
00:12:42,600 --> 00:12:44,880
Speaker 2: on the show, but check it out online. Really interesting

246
00:12:44,920 --> 00:12:46,480
Speaker 2: experience going down to Nvidia.

247
00:12:46,520 --> 00:12:49,040
Speaker 4: It's a great piece to just digest really what is

248
00:12:49,040 --> 00:12:51,760
Speaker 4: behind technology. We thank you for it. Meanwhile, coming up,

249
00:12:52,040 --> 00:12:54,320
Speaker 4: we are going to get serious and turn our attention

250
00:12:54,400 --> 00:12:56,600
Speaker 4: back to the latest in Israel and Hamas the war

251
00:12:57,240 --> 00:12:59,840
Speaker 4: and discuss the wall of social media during the times

252
00:12:59,840 --> 00:13:27,880
Speaker 4: of isis One. Next this is Bloombog technology.

253
00:13:17,679 --> 00:13:21,600
Speaker 2: Mid ongoing war between Israel and Hamas. President Biden is

254
00:13:21,640 --> 00:13:24,199
Speaker 2: weighing a visit to nation. Want to get more in

255
00:13:24,240 --> 00:13:27,440
Speaker 2: the latest from the ground of bringing Bloomberg's Oliver Crook,

256
00:13:27,480 --> 00:13:30,440
Speaker 2: who's life for us in Tel Aviv. Biden's visit largely

257
00:13:30,480 --> 00:13:33,600
Speaker 2: speculative at this point. There are other leaders both from

258
00:13:33,600 --> 00:13:35,720
Speaker 2: North America and the EU coming to town.

259
00:13:36,120 --> 00:13:37,959
Speaker 1: What is the latest on the ground, Oliver.

260
00:13:38,760 --> 00:13:40,880
Speaker 9: Yeah, so let's talk for us about the military action.

261
00:13:40,960 --> 00:13:43,559
Speaker 9: Over the weekend, we got sort of confirmation from something

262
00:13:43,600 --> 00:13:47,000
Speaker 9: that we've widely anticipated, but basically Israel saying that the

263
00:13:47,040 --> 00:13:49,280
Speaker 9: next stage of this war is going to involve a

264
00:13:49,679 --> 00:13:53,120
Speaker 9: ground operation of some kind, and that was sort of

265
00:13:53,160 --> 00:13:56,120
Speaker 9: confirmed over the weekend. Their focus right now has been

266
00:13:56,160 --> 00:13:59,520
Speaker 9: on the aerial assault. They have been absolutely pummeling Gaza

267
00:13:59,679 --> 00:14:02,440
Speaker 9: for at least the last week. They've had a few

268
00:14:02,480 --> 00:14:05,200
Speaker 9: evacuation passages a few hours where they say they're not

269
00:14:05,200 --> 00:14:07,800
Speaker 9: going to bomb major arteries so that people can move south.

270
00:14:08,040 --> 00:14:10,960
Speaker 9: We had one today, yesterday and on Saturday as well.

271
00:14:11,080 --> 00:14:12,839
Speaker 9: And the main question on the ground there is a

272
00:14:12,920 --> 00:14:14,920
Speaker 9: question of AID. There is AID that is not really

273
00:14:14,920 --> 00:14:17,520
Speaker 9: being able to get through. There have been speculation all

274
00:14:17,600 --> 00:14:21,200
Speaker 9: day and reports about potentially AID being able to move

275
00:14:21,240 --> 00:14:24,120
Speaker 9: through the Egyptian border at the checkpoint at Rafa, but

276
00:14:24,160 --> 00:14:25,000
Speaker 9: that has not been.

277
00:14:26,360 --> 00:14:27,200
Speaker 7: Confirmed by US.

278
00:14:27,480 --> 00:14:30,120
Speaker 9: In terms of the diplomacy side, yes, we're expecting all

279
00:14:30,160 --> 00:14:33,000
Speaker 9: Off Schultz, the German Chancellor, to arrive tomorrow, and whether

280
00:14:33,080 --> 00:14:35,880
Speaker 9: or not Biden comes, you know, to try to again

281
00:14:36,080 --> 00:14:38,080
Speaker 9: as a sort of deterrent, but also to show the

282
00:14:38,080 --> 00:14:40,600
Speaker 9: support of the United States for Israel, which has been

283
00:14:40,960 --> 00:14:42,400
Speaker 9: fairly vocal at this point.

284
00:14:42,840 --> 00:14:46,560
Speaker 4: Meanwhile, I mean, you bring our attention to the human cost, Oliver,

285
00:14:46,640 --> 00:14:48,720
Speaker 4: and we appreciate it. Just talk to us about the

286
00:14:48,800 --> 00:14:52,160
Speaker 4: timing and time running out. According to Iran, at least

287
00:14:52,200 --> 00:14:55,240
Speaker 4: Auran's foreign minister really talking about and if we're going

288
00:14:55,240 --> 00:14:57,720
Speaker 4: to avoid some sort of expungeon to the conflict.

289
00:14:58,680 --> 00:15:00,840
Speaker 9: Yeah, so this has been we've been hearing from Iran

290
00:15:00,960 --> 00:15:03,320
Speaker 9: kind of on the sidelines of this for the last

291
00:15:03,320 --> 00:15:05,880
Speaker 9: few days. On Friday was sort of the first kind

292
00:15:05,920 --> 00:15:08,320
Speaker 9: of ominous threat. And then we had the other foreign

293
00:15:08,360 --> 00:15:10,800
Speaker 9: ministries today saying that the time for the political the

294
00:15:10,840 --> 00:15:13,680
Speaker 9: political solution is running out and the expansion of the

295
00:15:13,720 --> 00:15:16,960
Speaker 9: war to other fronts approaching is inevitable, they said in

296
00:15:17,200 --> 00:15:20,200
Speaker 9: on An X And again, this is part of the

297
00:15:20,240 --> 00:15:23,440
Speaker 9: whole reason that Lincoln has been going to uh Qatar,

298
00:15:23,840 --> 00:15:28,680
Speaker 9: the UAE, Saudi Arabia, Egypt, Bahrain. This is where he

299
00:15:28,720 --> 00:15:30,920
Speaker 9: has been because it's in one side to get sort

300
00:15:30,920 --> 00:15:34,600
Speaker 9: of the back channels communicating with Tehran, but also deterrence.

301
00:15:34,600 --> 00:15:37,000
Speaker 9: We also have a second aircraft carrier fleet that is

302
00:15:37,040 --> 00:15:40,440
Speaker 9: coming to the Eastern Mediterranean. This is all about trying

303
00:15:40,480 --> 00:15:43,360
Speaker 9: to provoke that sort of deterrence. But it's not just Iran,

304
00:15:43,480 --> 00:15:46,160
Speaker 9: right So, just in the same way that the Israelis

305
00:15:46,160 --> 00:15:48,160
Speaker 9: saw all of the horror on their phones, they were

306
00:15:48,160 --> 00:15:50,040
Speaker 9: glued to it, the rest of the Arab world is

307
00:15:50,080 --> 00:15:52,440
Speaker 9: seeing the exact same thing on what's going on in

308
00:15:52,480 --> 00:15:55,360
Speaker 9: Gaza right now. And you've had protesters through the streets

309
00:15:55,360 --> 00:15:56,480
Speaker 9: throughout this process.

310
00:15:57,360 --> 00:15:59,720
Speaker 4: II thank you so much for most Oliver Krook there

311
00:15:59,720 --> 00:16:01,600
Speaker 4: with an latest on the ground from Tel Aviv, But

312
00:16:02,200 --> 00:16:04,120
Speaker 4: I mean lot of it just painted the picture there

313
00:16:04,160 --> 00:16:06,840
Speaker 4: of how much everyone has turned to social media in

314
00:16:06,880 --> 00:16:10,280
Speaker 4: this moment, and indeed, well the Uranian foreign minister actually

315
00:16:10,280 --> 00:16:12,640
Speaker 4: posting on x You want to understand really how people

316
00:16:12,680 --> 00:16:15,600
Speaker 4: are using social media and what they should be looking

317
00:16:15,680 --> 00:16:18,200
Speaker 4: at if at all nor A Benavidez is with us

318
00:16:18,360 --> 00:16:21,160
Speaker 4: just free press and or are You're a senior counsel,

319
00:16:21,240 --> 00:16:24,160
Speaker 4: your director of Digital Justice and civil rights, and really

320
00:16:24,160 --> 00:16:28,160
Speaker 4: you run the organization's platform accountability, the digital civil rights

321
00:16:28,200 --> 00:16:34,480
Speaker 4: work there and how accountable ultimately are x, Meta, TikTok, Town,

322
00:16:34,560 --> 00:16:36,720
Speaker 4: and bike Dance. How much are they looking for this

323
00:16:36,800 --> 00:16:40,160
Speaker 4: moment of responsible nurturing of what's being put onto the

324
00:16:40,160 --> 00:16:41,080
Speaker 4: platforms right now?

325
00:16:42,320 --> 00:16:44,680
Speaker 10: Well, thanks for having me, both of you. You know,

326
00:16:44,920 --> 00:16:49,080
Speaker 10: most of the major platforms have really failed the massive

327
00:16:49,120 --> 00:16:52,600
Speaker 10: stress test over the last week and a half. In particular,

328
00:16:52,680 --> 00:16:57,720
Speaker 10: Twitter or x now has created the perfect environment for

329
00:16:57,840 --> 00:17:02,200
Speaker 10: disinformation to thrive. And as your colleagues mentioned, people are

330
00:17:02,240 --> 00:17:05,320
Speaker 10: turning to social media now more than ever as their

331
00:17:05,359 --> 00:17:09,360
Speaker 10: primary way of getting rapid information. Most of us are

332
00:17:09,440 --> 00:17:12,480
Speaker 10: hungry to figure out what's going on on the ground

333
00:17:12,760 --> 00:17:17,480
Speaker 10: and whether it's family members, journalists, or others returning to

334
00:17:17,520 --> 00:17:21,360
Speaker 10: these platforms only to be met with a deluge of

335
00:17:21,840 --> 00:17:27,560
Speaker 10: mislabeled videos, images that are taken from other time places, regions,

336
00:17:27,680 --> 00:17:32,160
Speaker 10: et cetera. Ultimately, Elon Musk has shown that Twitter has failed,

337
00:17:32,240 --> 00:17:35,800
Speaker 10: I think with a kind of grandeur. You know, his

338
00:17:35,960 --> 00:17:40,119
Speaker 10: bad decisions have literally led us to this moment. He

339
00:17:40,240 --> 00:17:44,119
Speaker 10: gutted critical teams as other platforms have, like Meta and

340
00:17:44,400 --> 00:17:45,600
Speaker 10: TikTok and YouTube.

341
00:17:46,800 --> 00:17:49,440
Speaker 11: Elon Musk has also changed the blue check.

342
00:17:49,280 --> 00:17:52,479
Speaker 10: Mark feature, which is in the scheme of all of

343
00:17:52,520 --> 00:17:53,960
Speaker 10: these swirling forces.

344
00:17:54,000 --> 00:17:55,520
Speaker 11: One of the really big problems.

345
00:17:55,760 --> 00:17:59,960
Speaker 10: It incentivizes people to now subscribe and they pay us

346
00:18:00,080 --> 00:18:03,399
Speaker 10: small fee, but their content gets boosted. So if you're

347
00:18:03,440 --> 00:18:06,040
Speaker 10: willing to pay that eight dollars, your content might be

348
00:18:06,119 --> 00:18:09,760
Speaker 10: featured in more people's feeds. He also needs add money

349
00:18:09,800 --> 00:18:13,120
Speaker 10: because advertisers have been fleeing the platform for a lot

350
00:18:13,160 --> 00:18:17,160
Speaker 10: of these reasons, and one of his incentives has been

351
00:18:17,240 --> 00:18:20,919
Speaker 10: to pay people for engagement and virality.

352
00:18:21,080 --> 00:18:25,560
Speaker 1: Yeah, it's crazy, Naura Nora. Just for our audience.

353
00:18:25,760 --> 00:18:28,919
Speaker 2: X's response to this has been to basically call an

354
00:18:28,960 --> 00:18:32,359
Speaker 2: all hands on deck situation. They've told us here on

355
00:18:32,359 --> 00:18:36,200
Speaker 2: Limo Technology that all staff are focused on the Israel

356
00:18:36,280 --> 00:18:40,240
Speaker 2: hamass war. They've given us data on community notes action,

357
00:18:40,400 --> 00:18:43,680
Speaker 2: and for Meta's part, they have a special operations team

358
00:18:43,760 --> 00:18:47,439
Speaker 2: in place now with fluent Hebrew and Arabic speakers that

359
00:18:47,480 --> 00:18:50,960
Speaker 2: are basically working twenty four to seven to review content.

360
00:18:51,080 --> 00:18:55,720
Speaker 2: But at issue specifically seems to be video content, videos

361
00:18:55,760 --> 00:18:59,520
Speaker 2: purporting to show one thing when in reality they are another.

362
00:19:00,080 --> 00:19:02,520
Speaker 2: What is your view on the role video is playing here?

363
00:19:04,320 --> 00:19:06,400
Speaker 11: Video is one of the last frontiers.

364
00:19:06,440 --> 00:19:11,200
Speaker 10: It's really very difficult to moderate video content, and frankly,

365
00:19:11,480 --> 00:19:14,520
Speaker 10: Elon Musk pointing to community notes as a way for

366
00:19:14,760 --> 00:19:19,040
Speaker 10: users to do his job is inadequate. It's also inadequate

367
00:19:19,080 --> 00:19:21,760
Speaker 10: that a week and a half after the conflict escalated,

368
00:19:22,480 --> 00:19:25,080
Speaker 10: now is the moment that social media companies are pulling

369
00:19:25,080 --> 00:19:26,879
Speaker 10: their rapid crisis centers together.

370
00:19:27,240 --> 00:19:29,240
Speaker 11: That is days and days too late.

371
00:19:29,760 --> 00:19:33,040
Speaker 10: Citing to the ability to remove hundreds of thousands of

372
00:19:33,119 --> 00:19:36,080
Speaker 10: posts is also inadequate, because we have to understand the

373
00:19:36,160 --> 00:19:39,520
Speaker 10: environment here is there are millions and millions of posts

374
00:19:39,600 --> 00:19:42,879
Speaker 10: going out every day about this subject, and billions of

375
00:19:42,960 --> 00:19:46,199
Speaker 10: active monthly users trying to get that content, and so

376
00:19:46,520 --> 00:19:49,280
Speaker 10: the lack of teams, the lack of policies in place,

377
00:19:49,760 --> 00:19:53,639
Speaker 10: the slow to respond crisis centers are just not enough

378
00:19:54,000 --> 00:19:56,440
Speaker 10: to rain in the level of toxicity.

379
00:19:57,720 --> 00:20:00,240
Speaker 2: All right, Nora Benavidez a free Press thank you for

380
00:20:00,280 --> 00:20:11,880
Speaker 2: your time here on the show. This is Talking Tech

381
00:20:11,920 --> 00:20:14,800
Speaker 2: First up kPr raising seven hundred and twenty three million

382
00:20:14,880 --> 00:20:18,320
Speaker 2: dollars in Japan's largest listing in nearly five years, that

383
00:20:18,880 --> 00:20:22,560
Speaker 2: of chip equipment maker Kokutse Electric Shares a expence to

384
00:20:22,560 --> 00:20:26,400
Speaker 2: begin trading on October twenty fifth, plus Indonesia's biggest tech firm,

385
00:20:26,440 --> 00:20:30,040
Speaker 2: go To, plunged it's most on record earlier today after

386
00:20:30,119 --> 00:20:33,560
Speaker 2: revelations of a stock sale by a co founder, which

387
00:20:33,600 --> 00:20:36,600
Speaker 2: ignited a selloff, but go To recovered after anlis argued

388
00:20:36,600 --> 00:20:39,280
Speaker 2: the selloff was overdone and not some more supported by

389
00:20:39,320 --> 00:20:46,120
Speaker 2: Fundamental School.

390
00:20:47,560 --> 00:20:49,760
Speaker 4: Welcome back to Blue Meg Technology. I'm Caroline Hid in New.

391
00:20:49,720 --> 00:20:52,960
Speaker 2: York, Meed Lovelow in San Francisco, Cara A very quick

392
00:20:53,040 --> 00:20:54,560
Speaker 2: check in on the market. So we started the week

393
00:20:54,600 --> 00:20:57,520
Speaker 2: with the NASDA one hundred higher fi percentage point. Remember

394
00:20:57,520 --> 00:21:00,720
Speaker 2: we're coming off three straight weekly gains on the NAZAQ

395
00:21:00,760 --> 00:21:03,720
Speaker 2: one hundred amid all of the volatility of global markets,

396
00:21:03,760 --> 00:21:07,199
Speaker 2: worries about China's economy. We're ahead of earning season, but

397
00:21:07,320 --> 00:21:09,399
Speaker 2: two of those weeks we notched again of just like

398
00:21:09,440 --> 00:21:12,439
Speaker 2: a tenth of one percent, and that's inclusive of the

399
00:21:12,480 --> 00:21:15,479
Speaker 2: IPO window that we had, which hasn't done much to

400
00:21:15,520 --> 00:21:18,600
Speaker 2: give us sort of that much momentum to the upside.

401
00:21:18,720 --> 00:21:20,520
Speaker 1: This week's big a lot of FED speak.

402
00:21:20,560 --> 00:21:25,520
Speaker 2: We get China g GDP reading on Wednesday, but there

403
00:21:25,640 --> 00:21:28,360
Speaker 2: is a growing list of factors and if you read

404
00:21:28,400 --> 00:21:30,560
Speaker 2: that story about on the Bloomberg. A lot of hope

405
00:21:30,640 --> 00:21:33,359
Speaker 2: pinning on those big five megacap tech names this earning

406
00:21:33,400 --> 00:21:36,520
Speaker 2: season in terms of owning's growth to bring that positive

407
00:21:36,560 --> 00:21:39,320
Speaker 2: story back to tech, but also tech continuing to lead

408
00:21:39,359 --> 00:21:41,760
Speaker 2: the way amid a broader market that's kind of not

409
00:21:41,800 --> 00:21:43,159
Speaker 2: sure where it stands.

410
00:21:42,960 --> 00:21:44,960
Speaker 4: And that's in the public markets. Of course, this all

411
00:21:44,960 --> 00:21:47,000
Speaker 4: feeds into the private markets as well, and we're going

412
00:21:47,040 --> 00:21:49,280
Speaker 4: to be talking about both right here in New York

413
00:21:49,280 --> 00:21:51,840
Speaker 4: because it's Tech Week upon us officially kicking off in

414
00:21:51,920 --> 00:21:55,040
Speaker 4: the Big Apple with industry titans, startups gathering well basically

415
00:21:55,040 --> 00:21:58,400
Speaker 4: throughout the entire week for events, there's can be panels, conversations, breakfast,

416
00:21:58,640 --> 00:22:01,320
Speaker 4: much more, a week on blueing bog technology. Look, we're

417
00:22:01,320 --> 00:22:03,520
Speaker 4: going to be speaking with those founders, with those investors,

418
00:22:03,520 --> 00:22:07,159
Speaker 4: with those executives to discuss the tech ecosystem here in

419
00:22:07,200 --> 00:22:09,399
Speaker 4: New York City and why they choose to call it

420
00:22:09,480 --> 00:22:12,400
Speaker 4: home NYC. I please to say we're now joined by

421
00:22:12,680 --> 00:22:16,560
Speaker 4: two key players when it comes to investing in the area.

422
00:22:16,760 --> 00:22:19,720
Speaker 4: David Haber, General Partner Andrews and Horowitz, who focuses on

423
00:22:19,760 --> 00:22:22,560
Speaker 4: technology investments, particularly in financial services, and Julie You and

424
00:22:22,600 --> 00:22:25,359
Speaker 4: general partner in the bio and health team at Andrewson,

425
00:22:25,560 --> 00:22:28,880
Speaker 4: who needs investments in companies that are transforming how we access, pay,

426
00:22:28,920 --> 00:22:31,640
Speaker 4: and experience healthcare, a lot of which is an epicenter

427
00:22:31,680 --> 00:22:33,119
Speaker 4: here in New York. And David, I start with you,

428
00:22:33,200 --> 00:22:35,760
Speaker 4: because what do you see at the moment in New

429
00:22:35,840 --> 00:22:38,520
Speaker 4: York that is making more people put boots on the ground,

430
00:22:38,520 --> 00:22:40,479
Speaker 4: particularly Andrews and what You've got eighty plus New York

431
00:22:40,480 --> 00:22:42,359
Speaker 4: based employees, now you've got new office space.

432
00:22:42,680 --> 00:22:47,080
Speaker 12: Absolutely why Yeah. Look, I've always believed that opportunities live

433
00:22:47,119 --> 00:22:51,040
Speaker 12: between fields of expertise, and I really enjoy exploring those intersections.

434
00:22:51,080 --> 00:22:53,080
Speaker 12: And I think it really is a metaphor for New

435
00:22:53,119 --> 00:22:57,320
Speaker 12: York City because technology has a tendency of cunning across industries,

436
00:22:57,320 --> 00:22:59,240
Speaker 12: and I think the companies that really represent New York

437
00:22:59,320 --> 00:23:03,000
Speaker 12: best are those really live at the intersection between technology

438
00:23:03,400 --> 00:23:06,199
Speaker 12: and many of the large incoming industries that exist here

439
00:23:06,240 --> 00:23:10,600
Speaker 12: in New York, whether that's media, advertising, fashion, or financial services.

440
00:23:10,240 --> 00:23:12,560
Speaker 4: And indeed healthcare. And it's interesting, Julie, that's the area

441
00:23:12,600 --> 00:23:14,359
Speaker 4: that you focus on, and how much are you seeing

442
00:23:14,400 --> 00:23:17,520
Speaker 4: that health is becoming some of the deals the checks

443
00:23:17,520 --> 00:23:20,440
Speaker 4: the VC count that so we're currently seeing a chart

444
00:23:20,600 --> 00:23:22,280
Speaker 4: just showing that about four hundred and three in the

445
00:23:22,320 --> 00:23:25,600
Speaker 4: third quarter is how many per metro area we've seen

446
00:23:25,760 --> 00:23:28,199
Speaker 4: the share of us VC deals, the count that is

447
00:23:28,200 --> 00:23:30,240
Speaker 4: in New York. How much of that as healthcare and

448
00:23:30,240 --> 00:23:31,040
Speaker 4: how much should it be?

449
00:23:32,400 --> 00:23:35,199
Speaker 3: Absolutely, I mean healthcare in many ways. When I started

450
00:23:35,200 --> 00:23:37,879
Speaker 3: investing here at the firm about four years ago, I

451
00:23:37,920 --> 00:23:40,159
Speaker 3: sort of likened it to the nineteen ninety nine of

452
00:23:40,200 --> 00:23:42,120
Speaker 3: the Internet era, and so I feel like we're really

453
00:23:42,160 --> 00:23:44,439
Speaker 3: at the beginning of a dawn of this new digital

454
00:23:44,440 --> 00:23:46,240
Speaker 3: health era in domain.

455
00:23:46,760 --> 00:23:48,600
Speaker 13: And to David's point.

456
00:23:48,440 --> 00:23:50,560
Speaker 3: I think maybe a little known fact about the New

457
00:23:50,640 --> 00:23:53,359
Speaker 3: York tech scene is that, whereas most people think about

458
00:23:53,359 --> 00:23:56,520
Speaker 3: fintech is really the biggest sort of cohort of startups

459
00:23:56,520 --> 00:23:59,639
Speaker 3: and venture capital activity, it turns out that depending on

460
00:23:59,640 --> 00:24:02,000
Speaker 3: what charge do you look at, health tech is also

461
00:24:02,480 --> 00:24:05,000
Speaker 3: number one or number two within the New York tech

462
00:24:05,000 --> 00:24:09,080
Speaker 3: scene as well, because of the incumbency. In the same

463
00:24:09,119 --> 00:24:13,320
Speaker 3: way that we have financial services, bank companies and such

464
00:24:13,840 --> 00:24:16,719
Speaker 3: in the New York scene, we also have tremendously huge

465
00:24:17,240 --> 00:24:20,159
Speaker 3: healthcare companies, whether they be insurance companies, whether they be

466
00:24:20,160 --> 00:24:24,159
Speaker 3: biopharmaceutical companies, whether they be hospital systems also based in

467
00:24:24,160 --> 00:24:27,200
Speaker 3: that city, and it creates a really unique ecosystem for innovation,

468
00:24:27,680 --> 00:24:29,280
Speaker 3: and so we've really seen a ton of activity in

469
00:24:29,320 --> 00:24:30,479
Speaker 3: recent years in that domain.

470
00:24:30,800 --> 00:24:33,240
Speaker 2: Julia, let's show that chart again, which is deal count

471
00:24:33,320 --> 00:24:37,159
Speaker 2: right in San Francisco or the Silicon Valley area has

472
00:24:37,240 --> 00:24:40,200
Speaker 2: kind of led historically from a deal count even dollar

473
00:24:40,280 --> 00:24:44,280
Speaker 2: volume perspective. But if you extrapolate back, the gap in

474
00:24:44,400 --> 00:24:48,000
Speaker 2: terms of deal count and dollar volume is closing between

475
00:24:48,080 --> 00:24:49,679
Speaker 2: New York and San Francisco.

476
00:24:49,720 --> 00:24:50,639
Speaker 1: What does that tell you?

477
00:24:50,880 --> 00:24:51,080
Speaker 6: Yeah?

478
00:24:51,080 --> 00:24:51,600
Speaker 13: Absolutely.

479
00:24:51,760 --> 00:24:53,280
Speaker 3: This is one of the reasons that we've invested so

480
00:24:53,280 --> 00:24:55,680
Speaker 3: heavily in the New York tech scene is that healthcare

481
00:24:55,720 --> 00:24:58,159
Speaker 3: in particular has really seen a rise there. One of

482
00:24:58,160 --> 00:25:00,480
Speaker 3: the feces that we have about why that's the case

483
00:25:00,640 --> 00:25:02,639
Speaker 3: is that we have this concept of what's called a

484
00:25:02,680 --> 00:25:05,600
Speaker 3: digital health native founder, someone who has actually grown up

485
00:25:05,640 --> 00:25:08,359
Speaker 3: in digital health companies that have been quite successful and

486
00:25:08,400 --> 00:25:10,879
Speaker 3: are now coming out and starting their own businesses and

487
00:25:10,920 --> 00:25:13,960
Speaker 3: really seeding the next generation of entrepreneurs. And many of

488
00:25:13,960 --> 00:25:16,000
Speaker 3: those companies, most of those companies, in fact, have actually

489
00:25:16,000 --> 00:25:18,000
Speaker 3: been based in New York. So we have the legs

490
00:25:18,040 --> 00:25:20,480
Speaker 3: of companies like Oscar Health, which is a publicly traded

491
00:25:20,480 --> 00:25:23,399
Speaker 3: insure tech business that has now spawned a number of

492
00:25:23,520 --> 00:25:26,479
Speaker 3: entrepreneurs that we've backed that have again grown up in

493
00:25:26,520 --> 00:25:30,000
Speaker 3: a company that sits at the intersection of healthcare, technology

494
00:25:30,040 --> 00:25:33,000
Speaker 3: and financial services and can now take those skills into

495
00:25:33,320 --> 00:25:35,000
Speaker 3: the next wave of companies that are being built.

496
00:25:35,920 --> 00:25:39,520
Speaker 2: David, the story in San Francisco Bay Area Silicon Valley

497
00:25:39,560 --> 00:25:42,400
Speaker 2: is well told, right, you have the Stanford Computer science

498
00:25:42,480 --> 00:25:45,639
Speaker 2: drop out and they start a company here because the

499
00:25:45,760 --> 00:25:48,879
Speaker 2: funding was here and the like minded people were here.

500
00:25:49,119 --> 00:25:49,680
Speaker 1: And in some.

501
00:25:49,560 --> 00:25:51,240
Speaker 2: Sense that's still true, right, We talk about it on

502
00:25:51,280 --> 00:25:52,040
Speaker 2: the show all the time.

503
00:25:52,359 --> 00:25:54,560
Speaker 1: What is the equivalent story in New York?

504
00:25:55,880 --> 00:25:57,920
Speaker 12: Look, as I said, I think New York is such

505
00:25:57,920 --> 00:25:59,560
Speaker 12: a unique ecosystem.

506
00:25:59,800 --> 00:26:00,480
Speaker 8: I joined.

507
00:26:00,520 --> 00:26:02,280
Speaker 12: I first moved to New York City in two thousand

508
00:26:02,280 --> 00:26:04,960
Speaker 12: and nine in the wake of the financial crisis, you know,

509
00:26:05,000 --> 00:26:06,920
Speaker 12: and at the time, technology was sort of this cute

510
00:26:06,920 --> 00:26:09,520
Speaker 12: little underdog industry again in the shadows of you know,

511
00:26:09,520 --> 00:26:11,520
Speaker 12: many of the large kind of incoming industries here in

512
00:26:11,560 --> 00:26:15,200
Speaker 12: New York. As I mentioned, you know, bea media, you know, advertising,

513
00:26:15,640 --> 00:26:18,000
Speaker 12: you know, fashion, or financial services. And again, I think

514
00:26:18,720 --> 00:26:20,679
Speaker 12: the companies that are really sort of indicative of this

515
00:26:20,760 --> 00:26:25,040
Speaker 12: ecosystem are those that sort of intersect with those in industries.

516
00:26:26,119 --> 00:26:28,600
Speaker 12: You know, obviously I'm quite biased, but fintech is you know,

517
00:26:28,600 --> 00:26:31,400
Speaker 12: a huge presence here in New York and it's really

518
00:26:31,880 --> 00:26:34,399
Speaker 12: a great place to become sort of bridge between the

519
00:26:34,440 --> 00:26:37,280
Speaker 12: startup ecosystem and a lot of these you know, decision

520
00:26:37,320 --> 00:26:38,840
Speaker 12: makers at a lot of these large companies.

521
00:26:39,040 --> 00:26:42,119
Speaker 4: The reason, perhaps, David, that your bio hasaw that you

522
00:26:42,200 --> 00:26:43,760
Speaker 4: might say, is because you were a founder. Of course,

523
00:26:43,800 --> 00:26:45,840
Speaker 4: Bond Street was brought by Goldman. It was all about

524
00:26:45,880 --> 00:26:49,640
Speaker 4: sort of growth financing to businesses. What is the financing

525
00:26:50,720 --> 00:26:53,000
Speaker 4: like right now for entrepreneurs who want to go and

526
00:26:53,000 --> 00:26:55,320
Speaker 4: build things, who want to be ensuring that they're bringing

527
00:26:55,359 --> 00:26:58,720
Speaker 4: together the large caps meet the startup ecosystem? Are you

528
00:26:58,760 --> 00:27:02,200
Speaker 4: writing checks? Is the see community energize right now to

529
00:27:02,240 --> 00:27:02,760
Speaker 4: write checks?

530
00:27:02,840 --> 00:27:03,399
Speaker 8: Absolutely?

531
00:27:03,440 --> 00:27:05,400
Speaker 12: Again, just for context, you know, I joined in dres

532
00:27:05,440 --> 00:27:08,000
Speaker 12: and Horowitz in July twenty twenty one really to help

533
00:27:08,000 --> 00:27:10,280
Speaker 12: plant the flag here in New York City. At the time,

534
00:27:10,359 --> 00:27:12,000
Speaker 12: we were six people in New York. Today were over

535
00:27:12,040 --> 00:27:14,320
Speaker 12: eighty people in New York, which makes us likely one

536
00:27:14,320 --> 00:27:16,719
Speaker 12: of the largest venture capital firms at least by headcount

537
00:27:16,720 --> 00:27:18,960
Speaker 12: here in New York City. So you know, we're incredibly

538
00:27:18,960 --> 00:27:21,119
Speaker 12: excited to be here and to be writing you know,

539
00:27:21,200 --> 00:27:24,640
Speaker 12: checks into the entrepreneurs in this ecosystem. And again we've

540
00:27:24,640 --> 00:27:26,840
Speaker 12: seen a lot of other large firms join, you know,

541
00:27:26,920 --> 00:27:30,439
Speaker 12: open up offices in New York in the last twelve months.

542
00:27:30,440 --> 00:27:32,560
Speaker 12: And so while the markets are challenging, I think there's

543
00:27:32,560 --> 00:27:35,400
Speaker 12: plenty of capital available for entrepreneurs starting new companies.

544
00:27:36,640 --> 00:27:41,399
Speaker 2: Julie, You're academic background MIT both as an undergrad and

545
00:27:41,440 --> 00:27:45,520
Speaker 2: then have an MIT for masters. I believe how closely

546
00:27:46,160 --> 00:27:48,840
Speaker 2: as an expanded group of partners in New York City

547
00:27:48,880 --> 00:27:52,840
Speaker 2: in the East Coast do you track the academic basis

548
00:27:52,920 --> 00:27:54,919
Speaker 2: that talent can come from. You know, there's a lot

549
00:27:54,920 --> 00:27:58,320
Speaker 2: of emphasis here obviously on Stanford and Berkeley. Is there

550
00:27:58,359 --> 00:28:01,720
Speaker 2: the same pool of talent being generationally created each year

551
00:28:01,760 --> 00:28:02,600
Speaker 2: out of the East Coast?

552
00:28:02,720 --> 00:28:03,200
Speaker 8: Absolutely?

553
00:28:03,280 --> 00:28:05,240
Speaker 3: I mean, I think when you look at our portfolio,

554
00:28:05,720 --> 00:28:08,600
Speaker 3: roughly about half of our biown health portfolio is based

555
00:28:08,600 --> 00:28:10,080
Speaker 3: somewhere on the East Coast, whether it be in the

556
00:28:10,080 --> 00:28:14,280
Speaker 3: Boston ecosystem largely biotech focused there. And then the majority

557
00:28:14,320 --> 00:28:16,320
Speaker 3: of my personal portfolio is actually based in New York

558
00:28:16,320 --> 00:28:17,960
Speaker 3: and hence I spend a ton of time there with

559
00:28:18,000 --> 00:28:20,280
Speaker 3: my partner David on companies that really sit at the

560
00:28:20,280 --> 00:28:23,399
Speaker 3: intersection actually of healthcare and fintech, where we see a

561
00:28:23,440 --> 00:28:26,480
Speaker 3: huge amount of opportunity. I think the other piece of

562
00:28:26,520 --> 00:28:29,200
Speaker 3: this David mentioned that he is a recovering fintech entrepreneur.

563
00:28:29,440 --> 00:28:31,840
Speaker 3: I'm also a way of recovering health tech entrepreneur, and

564
00:28:31,880 --> 00:28:34,239
Speaker 3: that's really where we see a huge advantage for our

565
00:28:34,280 --> 00:28:36,879
Speaker 3: team in that we have all been ex builders in

566
00:28:36,920 --> 00:28:39,400
Speaker 3: these domains, and really that's I would say probably more

567
00:28:39,400 --> 00:28:41,520
Speaker 3: where we focus is where the pools of talent that

568
00:28:41,560 --> 00:28:44,920
Speaker 3: have actually built businesses that are native to different industries

569
00:28:44,960 --> 00:28:47,920
Speaker 3: that can now come together and see these unique opportunities

570
00:28:47,920 --> 00:28:48,760
Speaker 3: at those intersections.

571
00:28:48,880 --> 00:28:50,960
Speaker 4: Of course, you were only member of a software engineering

572
00:28:51,000 --> 00:28:54,200
Speaker 4: team that was eventually acquired by Oracle, so you know

573
00:28:54,240 --> 00:28:57,200
Speaker 4: how the exit route tends to look like, Julie, and

574
00:28:57,240 --> 00:29:01,120
Speaker 4: I'm interested as to whether or not it's more diversity

575
00:29:01,360 --> 00:29:03,840
Speaker 4: in terms of the founders that you see in New York.

576
00:29:03,880 --> 00:29:06,520
Speaker 4: I mean, there's always been this concern that you know,

577
00:29:06,560 --> 00:29:08,480
Speaker 4: when we are seeing it from the same pool of

578
00:29:08,800 --> 00:29:10,959
Speaker 4: Mit and Harvard as you two sit in front of us,

579
00:29:11,000 --> 00:29:15,600
Speaker 4: as there has been within that ecosystem not always as

580
00:29:15,680 --> 00:29:17,719
Speaker 4: much diversity as you'd like to see in terms of

581
00:29:17,920 --> 00:29:20,480
Speaker 4: people of color, women coming forward with businesses ideas.

582
00:29:20,600 --> 00:29:21,680
Speaker 8: How does that look at New York?

583
00:29:22,680 --> 00:29:25,360
Speaker 3: Yeah, I think New York has always been a huge

584
00:29:25,480 --> 00:29:28,640
Speaker 3: exemplary sort of diversity pool in many ways, whether it

585
00:29:28,720 --> 00:29:32,400
Speaker 3: be culturally, whether it be based on background, and more importantly,

586
00:29:32,400 --> 00:29:35,280
Speaker 3: as we've talked about, in terms of the actual experience

587
00:29:35,280 --> 00:29:38,080
Speaker 3: set that founders are able to bring to this next

588
00:29:38,200 --> 00:29:40,480
Speaker 3: wave of startups. So we absolutely do see that in

589
00:29:40,520 --> 00:29:41,440
Speaker 3: the New York scene.

590
00:29:41,920 --> 00:29:43,840
Speaker 2: David, tell me what New York Tech Week looks like

591
00:29:43,880 --> 00:29:46,040
Speaker 2: for you. How many hackathons are you going to, how

592
00:29:46,040 --> 00:29:49,560
Speaker 2: many mixes, what kind of events? Seriously, that's what's going

593
00:29:49,600 --> 00:29:51,240
Speaker 2: on out here on the West coast. What's it like

594
00:29:51,240 --> 00:29:51,960
Speaker 2: on the East coast.

595
00:29:52,080 --> 00:29:55,280
Speaker 12: Yeah, we're really incredibly exciting to be here. You know,

596
00:29:55,280 --> 00:29:57,400
Speaker 12: as I mentioned in Reason has been hosting these tech

597
00:29:57,400 --> 00:30:00,560
Speaker 12: weeks in cities like San Francisco and Los Angeles. York City,

598
00:30:01,280 --> 00:30:04,320
Speaker 12: New York Tech Week stands to be our largest event ever.

599
00:30:04,840 --> 00:30:07,280
Speaker 12: We have three hundred and fifty different events hosted not

600
00:30:07,360 --> 00:30:10,520
Speaker 12: only by our firm, but by folks across the tech ecosystem,

601
00:30:10,560 --> 00:30:14,440
Speaker 12: which again, I think speaks to how dynamic this ecosystem

602
00:30:14,480 --> 00:30:17,560
Speaker 12: has become. So we're kicking things off with an event tonight,

603
00:30:18,040 --> 00:30:20,000
Speaker 12: which we're really excited about. And then Julie and I

604
00:30:20,080 --> 00:30:22,800
Speaker 12: are hosting an event again at the intersection of healthcare

605
00:30:22,840 --> 00:30:25,240
Speaker 12: and fintech and really excited to host you know a

606
00:30:25,280 --> 00:30:28,360
Speaker 12: number of entrepreneurs building at that intersection and I love it.

607
00:30:28,440 --> 00:30:32,560
Speaker 4: David Haber, Julieu, thank you as your well Social Endeavors

608
00:30:32,960 --> 00:30:35,520
Speaker 4: pick up a please for this particular wig. We thank

609
00:30:35,520 --> 00:30:37,760
Speaker 4: you both from Andrews and Horowitz. And what else we've

610
00:30:37,760 --> 00:30:38,560
Speaker 4: got coming up.

611
00:30:38,960 --> 00:30:43,640
Speaker 2: Well, digesting recovering fintech entrepreneur, recovering health tech founder. What's

612
00:30:43,640 --> 00:30:45,960
Speaker 2: said about but coming up on the show talking targeted

613
00:30:46,000 --> 00:30:48,800
Speaker 2: advertising on your social media feeds and how it isn't

614
00:30:48,880 --> 00:30:52,160
Speaker 2: likely to change anytime soon. We're going to discuss this

615
00:30:52,600 --> 00:31:08,480
Speaker 2: is bloomber technology.

616
00:31:10,080 --> 00:31:12,280
Speaker 4: We want to do a bit of a deep dive on, well,

617
00:31:12,400 --> 00:31:14,200
Speaker 4: a certain business model at play at the moment, the

618
00:31:14,200 --> 00:31:18,200
Speaker 4: economics of zero ad versions on mainstream social media services.

619
00:31:18,800 --> 00:31:21,800
Speaker 4: They're not particularly likely to appeal to tech companies or

620
00:31:21,880 --> 00:31:22,600
Speaker 4: indeed their users.

621
00:31:22,600 --> 00:31:23,400
Speaker 1: It would seem.

622
00:31:23,200 --> 00:31:26,880
Speaker 4: Indeed, targeted advertising it totally revolutionized the media business. May Meta,

623
00:31:27,000 --> 00:31:29,960
Speaker 4: for example, one of the most valuable companies in the world,

624
00:31:30,280 --> 00:31:33,640
Speaker 4: A very own Bloomberg Max Chafkin writes in Today's Bloomberg

625
00:31:33,680 --> 00:31:36,080
Speaker 4: Business Week, all about the pros and the cons You

626
00:31:36,160 --> 00:31:40,640
Speaker 4: join us now, and basically, why will they be ultimately

627
00:31:40,920 --> 00:31:43,480
Speaker 4: such a push against this unless they're regulated that way?

628
00:31:43,800 --> 00:31:43,960
Speaker 8: Right?

629
00:31:44,080 --> 00:31:47,760
Speaker 14: So, the big reason that this model is popular is

630
00:31:47,800 --> 00:31:53,120
Speaker 14: that it's extremely lucrative. Facebook Meta has built a very

631
00:31:53,200 --> 00:31:55,600
Speaker 14: large a business that generates more than one hundred billion

632
00:31:55,600 --> 00:31:58,800
Speaker 14: dollars a year serving these targeted ads to people. It

633
00:31:58,840 --> 00:32:02,400
Speaker 14: has a lot of power or over retailers anyone wants

634
00:32:02,440 --> 00:32:04,760
Speaker 14: to show sell products on the Internet, as well as

635
00:32:04,760 --> 00:32:09,000
Speaker 14: media companies because it's amassed this huge database essentially of

636
00:32:09,040 --> 00:32:11,880
Speaker 14: personal information about people that it can then rent to

637
00:32:12,240 --> 00:32:13,000
Speaker 14: third parties.

638
00:32:13,160 --> 00:32:15,920
Speaker 8: And in Europe right now, we have regulators pushing.

639
00:32:15,680 --> 00:32:18,480
Speaker 14: Back against aspects of that model, and metas sort of

640
00:32:18,480 --> 00:32:20,640
Speaker 14: turning around saying, well, Okay, if you don't like it,

641
00:32:20,840 --> 00:32:24,440
Speaker 14: you can pay us for Facebook and Instagram, pay us

642
00:32:24,560 --> 00:32:27,160
Speaker 14: a relatively high monthly price. It looks like they're talking

643
00:32:27,160 --> 00:32:30,000
Speaker 14: somewhere in the neighborhood of twenty dollars a month and

644
00:32:30,040 --> 00:32:32,720
Speaker 14: you'll see no ads at all, which you know, I

645
00:32:32,760 --> 00:32:35,080
Speaker 14: would guess that very few people will actually be willing

646
00:32:35,120 --> 00:32:37,120
Speaker 14: to pay for because you're talking about a price, you know,

647
00:32:37,160 --> 00:32:39,880
Speaker 14: that costs more than some wireless plans obviously costs more

648
00:32:39,880 --> 00:32:43,120
Speaker 14: than a lot of newspapers, Disney plus Netflix and so on.

649
00:32:43,200 --> 00:32:45,280
Speaker 8: It's a lot of money for social media.

650
00:32:44,880 --> 00:32:46,960
Speaker 4: It is, and it's also a lot of money for

651
00:32:47,280 --> 00:32:49,800
Speaker 4: people who don't make as money as others. And in

652
00:32:49,840 --> 00:32:53,120
Speaker 4: some way then means someone who is well has more

653
00:32:53,160 --> 00:32:56,240
Speaker 4: money to spend becomes able to pay for more privacy,

654
00:32:56,240 --> 00:32:57,560
Speaker 4: and that doesn't seem particularly fast.

655
00:32:57,560 --> 00:33:00,360
Speaker 14: So this is an argument that Mark Zuckerberg, under of

656
00:33:00,440 --> 00:33:03,160
Speaker 14: Facebook and Meta, has long used as an argument against this,

657
00:33:03,280 --> 00:33:06,440
Speaker 14: saying that it would be unfair, be unequal to allow

658
00:33:06,480 --> 00:33:08,480
Speaker 14: people to sort of buy their way out of ads.

659
00:33:09,560 --> 00:33:10,360
Speaker 8: What happened, you know?

660
00:33:10,440 --> 00:33:14,200
Speaker 14: Twenty eighteen, Europe passes the GDPR, this big privacy regulation,

661
00:33:14,320 --> 00:33:16,920
Speaker 14: and basically Facebook has been fighting.

662
00:33:16,640 --> 00:33:18,960
Speaker 8: Ever since over exactly how it.

663
00:33:18,920 --> 00:33:20,959
Speaker 14: Applies the company, and now this is kind of their

664
00:33:21,040 --> 00:33:25,560
Speaker 14: latest gambit to make the regulators happy. Yet to be

665
00:33:25,560 --> 00:33:27,920
Speaker 14: seen where the regulators will definitely sign off on this plane,

666
00:33:27,880 --> 00:33:31,000
Speaker 14: although it's looking certainly possible if not likely.

667
00:33:32,160 --> 00:33:35,120
Speaker 2: Max, Let's look at the proposed subscription costs Facebook and

668
00:33:35,120 --> 00:33:36,480
Speaker 2: Instagram versus everything else.

669
00:33:36,480 --> 00:33:37,960
Speaker 1: There it is twenty bucks.

670
00:33:38,440 --> 00:33:41,160
Speaker 2: I pay for X premium for example, eight dollars a

671
00:33:41,160 --> 00:33:42,880
Speaker 2: month or eighty four dollars a year, depending how you

672
00:33:42,920 --> 00:33:45,480
Speaker 2: look at it. And I did that because I wanted

673
00:33:45,560 --> 00:33:49,959
Speaker 2: to experience those additional features. But beyond price, what this

674
00:33:50,040 --> 00:33:53,479
Speaker 2: chart illustrates is choice. Right, at some point, you're just

675
00:33:53,520 --> 00:33:56,560
Speaker 2: going to say this is a platform be it Facebook

676
00:33:56,600 --> 00:33:58,160
Speaker 2: or Instagram, that I don't need to have.

677
00:33:59,000 --> 00:34:01,480
Speaker 14: Yeah, although the thing is you're not going to have

678
00:34:01,560 --> 00:34:03,600
Speaker 14: to make that choice, and that's the whole point of this,

679
00:34:03,720 --> 00:34:06,760
Speaker 14: because you will be allowed to continue looking at your

680
00:34:06,800 --> 00:34:10,000
Speaker 14: personalized ads. And I think that's the bet here from

681
00:34:10,080 --> 00:34:13,359
Speaker 14: from Mark Zuckerberg's standpoint that you know, most people are

682
00:34:13,360 --> 00:34:15,360
Speaker 14: going to look at twenty dollars and say, you know,

683
00:34:15,560 --> 00:34:17,359
Speaker 14: heck no, I don't want to pay for that, and

684
00:34:17,360 --> 00:34:21,160
Speaker 14: they'll stay in the in the personalized advertising scheme, which

685
00:34:21,239 --> 00:34:24,040
Speaker 14: generates a ton of money. So the you know, average

686
00:34:24,080 --> 00:34:27,200
Speaker 14: revenue per user in the United States for Facebook is

687
00:34:27,680 --> 00:34:30,719
Speaker 14: something like two hundred more than two hundred dollars a year,

688
00:34:30,960 --> 00:34:34,880
Speaker 14: so they're totally happy to have you continue to experience

689
00:34:34,920 --> 00:34:38,359
Speaker 14: this free social network and for them to have you know,

690
00:34:39,120 --> 00:34:41,480
Speaker 14: a near monopoly or a doopoly, depending on how you

691
00:34:41,520 --> 00:34:42,040
Speaker 14: think about it.

692
00:34:42,239 --> 00:34:45,160
Speaker 8: On social ads, you know, on the internet.

693
00:34:46,000 --> 00:34:48,760
Speaker 2: The buzzword right now in tech across both social media

694
00:34:48,760 --> 00:34:52,759
Speaker 2: and a guess e commerce's personalization and meta's whole thing

695
00:34:52,840 --> 00:34:55,520
Speaker 2: has been taking data to make sure that what you

696
00:34:55,560 --> 00:34:59,240
Speaker 2: look at is relevant to you. How does a premium

697
00:34:59,320 --> 00:35:01,600
Speaker 2: subscription to impact that, Well, what.

698
00:35:01,880 --> 00:35:05,520
Speaker 14: They'll say is that you know, if you if you pay,

699
00:35:05,560 --> 00:35:08,239
Speaker 14: if you have no ads whatsoever, then it would be fine. Right,

700
00:35:08,280 --> 00:35:11,160
Speaker 14: You're still going to see the personalized feed you know,

701
00:35:11,239 --> 00:35:14,160
Speaker 14: your friends and and things that you're interested in. You

702
00:35:14,160 --> 00:35:17,200
Speaker 14: will no longer see personalized ads, which you know if

703
00:35:17,239 --> 00:35:19,080
Speaker 14: if you're talking to like their ad sales people. That

704
00:35:19,120 --> 00:35:21,560
Speaker 14: would be a huge problem for most people, it's probably

705
00:35:21,560 --> 00:35:23,880
Speaker 14: no big deal. The thing that they're really fighting against

706
00:35:23,920 --> 00:35:26,439
Speaker 14: would be some kind of rule that would prevent them

707
00:35:26,560 --> 00:35:29,000
Speaker 14: or allow people to opt out of personalization, or make

708
00:35:29,040 --> 00:35:32,080
Speaker 14: it easy to opt out of personalization, because then they

709
00:35:32,080 --> 00:35:34,040
Speaker 14: would just have to serve you ads you know, based

710
00:35:34,080 --> 00:35:39,160
Speaker 14: on you know, your location or whatever. Some essentially use context,

711
00:35:39,520 --> 00:35:41,359
Speaker 14: like the way that Google does to serve you ads

712
00:35:41,440 --> 00:35:44,080
Speaker 14: rather than serving ads based on things it knows about you,

713
00:35:44,200 --> 00:35:46,000
Speaker 14: which from their point of view would be bad and

714
00:35:46,080 --> 00:35:47,960
Speaker 14: I think would certainly be less lucrative.

715
00:35:49,040 --> 00:35:51,360
Speaker 4: Ultimately, I mean, you can in some way pay for

716
00:35:51,680 --> 00:35:54,600
Speaker 4: what a blue take subscription subscription, I don't think it

717
00:35:54,600 --> 00:35:57,600
Speaker 4: seemed a subscription, but to be in some way anointed

718
00:35:57,760 --> 00:36:00,560
Speaker 4: someone that should be listened to on Meta and Facebook

719
00:36:00,560 --> 00:36:02,400
Speaker 4: in the same way that Twitter does a little bit.

720
00:36:02,440 --> 00:36:04,240
Speaker 4: But I think you actually have to take some bookses

721
00:36:04,280 --> 00:36:08,440
Speaker 4: and actually whether you're someone who needs to have that

722
00:36:08,480 --> 00:36:11,120
Speaker 4: privacy and needs to have it said that you are

723
00:36:11,160 --> 00:36:13,319
Speaker 4: whom you say you are and pay for it. So

724
00:36:13,480 --> 00:36:15,640
Speaker 4: how is that thing going that sort of whole experiment

725
00:36:15,680 --> 00:36:16,040
Speaker 4: the start.

726
00:36:16,120 --> 00:36:16,719
Speaker 8: So and we.

727
00:36:16,719 --> 00:36:18,759
Speaker 14: Should say this is something that not just Meta is

728
00:36:18,760 --> 00:36:22,880
Speaker 14: playing with. TikTok is testing sort of paid paid experiences

729
00:36:22,880 --> 00:36:25,239
Speaker 14: with fewer ads or no ads. Snapchat has a no

730
00:36:25,320 --> 00:36:30,040
Speaker 14: ads paid experience that's piloting, and Twitter, of course x

731
00:36:30,320 --> 00:36:32,760
Speaker 14: has this you know, much vaunted blue.

732
00:36:32,600 --> 00:36:35,239
Speaker 8: Check system and might go to three. You don't level

733
00:36:35,280 --> 00:36:36,400
Speaker 8: and exactly.

734
00:36:36,000 --> 00:36:38,719
Speaker 14: And Linda Acarino is signal there's going to be a

735
00:36:38,760 --> 00:36:41,240
Speaker 14: higher tier, you know, as EDG just said, the current

736
00:36:41,280 --> 00:36:43,799
Speaker 14: subscription costs between eight and eleven dollars, depending on where

737
00:36:43,800 --> 00:36:46,439
Speaker 14: you buy it. You know, maybe the new one will

738
00:36:46,440 --> 00:36:48,600
Speaker 14: cost twenty dollars or something like that. For no ads,

739
00:36:48,719 --> 00:36:50,680
Speaker 14: we should say none of these have done very well.

740
00:36:51,120 --> 00:36:55,839
Speaker 14: Elon Musk has relentlessly promoted you know, this subscription thing.

741
00:36:56,239 --> 00:37:00,000
Speaker 14: We're talking about a tiny percentage of Twitter X's audio,

742
00:37:00,520 --> 00:37:03,640
Speaker 14: you know, a revenue stream that in no way replaces

743
00:37:03,680 --> 00:37:06,640
Speaker 14: the kind of revenue they were able to achieve from advertising.

744
00:37:06,719 --> 00:37:09,400
Speaker 14: I mean, the problem here isn't necessarily that people don't want,

745
00:37:09,680 --> 00:37:13,080
Speaker 14: you know, ad free experiences or premium social network experiences.

746
00:37:13,320 --> 00:37:16,720
Speaker 14: It's that online advertising is a much much better business

747
00:37:16,719 --> 00:37:19,480
Speaker 14: than that, and so companies that are looking to, you know,

748
00:37:19,560 --> 00:37:22,080
Speaker 14: change their business model would be giving up huge sums

749
00:37:22,080 --> 00:37:24,440
Speaker 14: of revenue, which something maybe Elon Musk can do, you know,

750
00:37:24,520 --> 00:37:26,600
Speaker 14: private company, and he's Elon Musk, but it's.

751
00:37:26,440 --> 00:37:28,160
Speaker 8: Going to be a lot harder for most public companies

752
00:37:28,160 --> 00:37:28,960
Speaker 8: to pull off.

753
00:37:29,680 --> 00:37:29,920
Speaker 13: All right.

754
00:37:30,000 --> 00:37:33,239
Speaker 2: Bloomberg Business Feed columnist Max Chafkin with the breakdown, Thank you.

755
00:37:41,560 --> 00:37:44,880
Speaker 2: Apple's iPhone fifteen may not be as hot a commodity

756
00:37:44,880 --> 00:37:48,120
Speaker 2: on the smartphone market, at least in China. Data from

757
00:37:48,160 --> 00:37:51,840
Speaker 2: Counterpoint Research estimates the iPhone fifteen sales are down nearbly

758
00:37:51,880 --> 00:37:56,160
Speaker 2: five percent compared to the iPhone fourteen after the first

759
00:37:56,200 --> 00:38:00,160
Speaker 2: seventeen days post release. However, the data does lump of

760
00:38:00,200 --> 00:38:04,160
Speaker 2: those phone fifteen models together in aggregate, joining us who

761
00:38:04,200 --> 00:38:08,759
Speaker 2: else Bloomberg's Mark Gum and chief correspondent Mark It's an

762
00:38:08,760 --> 00:38:12,360
Speaker 2: interesting data point because it's kind of counted to the

763
00:38:12,360 --> 00:38:15,120
Speaker 2: commentary that Apple gave us in earnings to the end

764
00:38:15,160 --> 00:38:17,480
Speaker 2: of the June quarter, right iPhone would accelerate.

765
00:38:17,760 --> 00:38:19,880
Speaker 1: We thought the iPhone fifteen be a hit. What have

766
00:38:19,960 --> 00:38:20,440
Speaker 1: we learned?

767
00:38:21,360 --> 00:38:23,120
Speaker 13: Yeah, these are a couple interesting data points.

768
00:38:23,120 --> 00:38:26,960
Speaker 15: They're pointing towards the iPhone potentially going down double digits

769
00:38:27,000 --> 00:38:28,359
Speaker 15: in recent weeks in terms of.

770
00:38:28,320 --> 00:38:30,560
Speaker 13: Sales in mainland China.

771
00:38:30,719 --> 00:38:33,479
Speaker 15: Now, the June quarter was very strong for Apple and China,

772
00:38:33,480 --> 00:38:36,200
Speaker 15: one of their strongest in the company's history. But there's

773
00:38:36,239 --> 00:38:38,520
Speaker 15: been a few things that happened since then. There was

774
00:38:38,520 --> 00:38:41,400
Speaker 15: the launch of the Walway, the new mate phone. There

775
00:38:41,880 --> 00:38:44,759
Speaker 15: there was discussion of some government agencies banning the use

776
00:38:44,840 --> 00:38:47,640
Speaker 15: or expanding the banning of use of iPhones. There there

777
00:38:47,640 --> 00:38:50,960
Speaker 15: were some concerns around nationalism and potentially some consumers in

778
00:38:51,040 --> 00:38:52,760
Speaker 15: China souring on the iPhone.

779
00:38:52,760 --> 00:38:53,680
Speaker 13: Ahead of that launch.

780
00:38:54,200 --> 00:38:56,439
Speaker 15: We saw when the new iPhone fifteens went on sale

781
00:38:56,480 --> 00:38:59,040
Speaker 15: in China that there was a tremendous amount of early

782
00:38:59,120 --> 00:39:02,840
Speaker 15: demand the credible lines for the iPhone fifteen in China.

783
00:39:03,080 --> 00:39:04,320
Speaker 13: So these are two data points.

784
00:39:04,400 --> 00:39:07,400
Speaker 15: We won't necessarily know for sure what's going on with

785
00:39:07,440 --> 00:39:10,760
Speaker 15: the iPhone, not even this earning cycle. Right Apple reports

786
00:39:10,800 --> 00:39:14,319
Speaker 15: fourth quarter earnings November two. We're not going to get

787
00:39:14,320 --> 00:39:16,319
Speaker 15: a full picture of how the iPhone is doing in

788
00:39:16,400 --> 00:39:19,360
Speaker 15: China the latest model until the end of January or

789
00:39:19,360 --> 00:39:22,759
Speaker 15: early February when they report Q one sales. Obviously, the

790
00:39:22,760 --> 00:39:24,359
Speaker 15: fourth quarter only had about a week and a half

791
00:39:24,480 --> 00:39:27,040
Speaker 15: or so of iPhone sales, so we have to take

792
00:39:27,040 --> 00:39:30,000
Speaker 15: all these data points into consideration, probably have to wait

793
00:39:30,000 --> 00:39:32,960
Speaker 15: a few months to know the real story, but certainly

794
00:39:33,160 --> 00:39:36,480
Speaker 15: I am tending to believe that there is some decline.

795
00:39:36,120 --> 00:39:37,160
Speaker 13: There on the iPhone in China.

796
00:39:37,320 --> 00:39:40,880
Speaker 15: The good news is as you're seeing a tremendous increase

797
00:39:40,960 --> 00:39:43,840
Speaker 15: for the iPhone momentum in the United States and elsewhere,

798
00:39:43,920 --> 00:39:45,799
Speaker 15: so you're probably going to get a bit of an

799
00:39:45,880 --> 00:39:49,600
Speaker 15: offset there from going down in one country and significantly

800
00:39:49,680 --> 00:39:50,160
Speaker 15: up in the other.

801
00:39:50,560 --> 00:39:53,080
Speaker 4: And talk to us therefore about the US and the

802
00:39:53,080 --> 00:39:55,480
Speaker 4: executive team that they have based here, Mark, because you

803
00:39:55,520 --> 00:39:58,440
Speaker 4: wrote over the weekend that actually, well, amid sort of

804
00:39:58,480 --> 00:40:01,759
Speaker 4: these pushes and pulls glob there has been some more

805
00:40:01,800 --> 00:40:04,160
Speaker 4: elevated titles in VP land at least.

806
00:40:04,840 --> 00:40:05,440
Speaker 13: Yeah, that's right.

807
00:40:05,520 --> 00:40:08,120
Speaker 15: So Apple obviously is run by Tim Cook, and under

808
00:40:08,200 --> 00:40:10,600
Speaker 15: him is what's called the ET. That's the executive team.

809
00:40:10,760 --> 00:40:14,600
Speaker 15: That's about eleven senior vice presidents. That's your head of hardware,

810
00:40:14,680 --> 00:40:17,680
Speaker 15: head of software, hed illegal, CFO, etc. But below all

811
00:40:17,719 --> 00:40:21,640
Speaker 15: of those people is a group called the top one hundred, right,

812
00:40:21,680 --> 00:40:24,319
Speaker 15: that is their vice presidents. The top one hundred actually

813
00:40:24,320 --> 00:40:26,440
Speaker 15: includes all of those people, but you have about one

814
00:40:26,520 --> 00:40:30,040
Speaker 15: hundred vps below them. They do promotions every October. They

815
00:40:30,080 --> 00:40:32,640
Speaker 15: lost about a dozen vice presidents over the last two

816
00:40:32,680 --> 00:40:35,480
Speaker 15: years or so, and so they're sort of refueling those ranks.

817
00:40:35,520 --> 00:40:37,160
Speaker 13: There's new vps for retail.

818
00:40:37,560 --> 00:40:40,600
Speaker 15: Actually three women have been elevated to the vice president

819
00:40:40,680 --> 00:40:43,759
Speaker 15: level in the retail organization, which is pretty significant for

820
00:40:43,800 --> 00:40:47,120
Speaker 15: the company in terms of the diversity efforts and putting

821
00:40:47,160 --> 00:40:50,279
Speaker 15: new lieutenants under their head of retail. There there are

822
00:40:50,360 --> 00:40:54,840
Speaker 15: new vice presidents in Operations, Product operations and product manufacturing,

823
00:40:55,320 --> 00:40:58,480
Speaker 15: and a few new vice presidents in software engineering, so

824
00:40:58,960 --> 00:41:02,560
Speaker 15: pretty significant elevations across the board at the company, sort

825
00:41:02,600 --> 00:41:07,560
Speaker 15: of creating this new generation of top executives at the Firm's.

826
00:41:06,880 --> 00:41:09,600
Speaker 4: Mart Bogerman always with the best breakdown. We thank you

827
00:41:09,680 --> 00:41:11,640
Speaker 4: so much. Meanwhile, look, and that does it for this

828
00:41:11,800 --> 00:41:12,920
Speaker 4: edition of Bluebot Technology.

829
00:41:13,480 --> 00:41:15,400
Speaker 2: Yeah, big thank you to those of you listening to

830
00:41:15,440 --> 00:41:19,520
Speaker 2: the podcast. You can get it on all the bluebo platforms, Apple, Iheartspotify,

831
00:41:19,560 --> 00:41:22,480
Speaker 2: and we're also posting the show to YouTube from SF

832
00:41:22,480 --> 00:41:23,360
Speaker 2: in New York City.

833
00:41:23,840 --> 00:41:25,080
Speaker 1: This has been Bot Technology