WEBVTT - Nvidia Earnings Expectations and Apple Vision Pro U-Turn 0:00:02.200 --> 0:00:07.440 From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.800 --> 0:00:23.119 This is Bloomberg Technology with Caroline Hide and Ed Ludlow. 0:00:25.200 --> 0:00:27.480 I'm Caroline Heide a Bloomberg's World headquarters in New York. 0:00:27.560 --> 0:00:28.880 Ed Ludlow is off this week. 0:00:29.000 --> 0:00:31.440 This is Bloomberg Technology coming up in the next hour. 0:00:31.480 --> 0:00:34.880 Wall Street eagerly awaiting in videos earnings due out tomorrow, 0:00:35.400 --> 0:00:38.120 will we get confirmation that shares can meet the sky 0:00:38.240 --> 0:00:42.040 high expectation set by the boom in artificial intelligence? Plus 0:00:42.080 --> 0:00:44.199 Apple loyalists, well, they're making a U turn on the 0:00:44.280 --> 0:00:47.800 Vision pro, some returning the device to get their thirty 0:00:47.800 --> 0:00:49.120 five hundred dollars back. 0:00:49.479 --> 0:00:51.360 So as the headset truly the future. 0:00:51.560 --> 0:00:54.000 And Bitcoin it climbs for four straight weeks, which means 0:00:54.040 --> 0:00:56.160 a record high could be in sight for the largest 0:00:56.160 --> 0:00:59.080 digital asset. Will have more this hour, but first it's 0:00:59.160 --> 0:01:02.160 checking on these markets and look just maybe some profit 0:01:02.200 --> 0:01:04.600 taking ahead of another big week when you're coming to 0:01:04.600 --> 0:01:06.720 the earnings expectations. S and P five found it actually 0:01:06.720 --> 0:01:08.959 below that five thousand dollar level we've had a run 0:01:09.040 --> 0:01:10.640 up in February. Are we going to be selling some 0:01:10.680 --> 0:01:12.840 of that fact into the second half? Nasdaq off by 0:01:12.840 --> 0:01:13.800 more than a percentage point. 0:01:13.840 --> 0:01:14.880 Is tech get sits the most? 0:01:14.920 --> 0:01:17.360 It's interesting that I shine like some of the Chinese 0:01:17.360 --> 0:01:19.640 tech stocks that traded here in the US off by 0:01:19.680 --> 0:01:22.319 almost two percent. Look the riding to the rescue in 0:01:22.319 --> 0:01:24.720 the mortgage area, in particular the cuts to the mortgage rates, 0:01:24.760 --> 0:01:26.479 which are meant to be propping up the property sector. 0:01:26.640 --> 0:01:30.319 Not enough lookewarm response, and certainly the Chinese sector in 0:01:30.400 --> 0:01:32.480 terms of tech also exemplifying that. 0:01:32.520 --> 0:01:33.479 Move on, have a look. 0:01:33.400 --> 0:01:36.160 At so many individual movers and what's happening in crypto. Bitcoin, 0:01:36.280 --> 0:01:39.240 as we said, is marched higher for four straight weeks. 0:01:39.240 --> 0:01:41.840 We're up twenty one percent over the course of this 0:01:41.959 --> 0:01:44.200 year alone, and it is notable that we're almost at 0:01:44.200 --> 0:01:46.559 that fifty two thousand dollars level some balls some tech 0:01:46.640 --> 0:01:48.920 charts when you're starting to signal that we could eclipse 0:01:48.920 --> 0:01:51.160 that sixty nine thousand dollars handle we've had in the past. 0:01:51.400 --> 0:01:52.880 Move on and have a little look at what's happening 0:01:52.920 --> 0:01:55.360 in the world of individual movers. And as I say, well, 0:01:55.400 --> 0:01:57.440 on the global founderies part, we're actually to up two 0:01:57.440 --> 0:01:59.680 point eight percent. One of the tech outperformers of the day. 0:01:59.680 --> 0:02:01.880 Why well, because they seem to be getting yet more 0:02:01.920 --> 0:02:05.040 funding from the government, yet more movement towards supply chain 0:02:05.080 --> 0:02:07.360 here in the United States and some building in Malta 0:02:07.400 --> 0:02:09.760 in particular. So we're up at fifty to four dollars 0:02:09.840 --> 0:02:12.520 eighty six Trade desk, pulling back on what was a 0:02:12.760 --> 0:02:16.799 rampant rise on Friday. Numbers outperformed on the Thursday night. 0:02:16.840 --> 0:02:20.000 We saw really earnings flourish for this particular advertising company, 0:02:20.400 --> 0:02:22.519 and well they're just taking a little bit of profit today, 0:02:22.560 --> 0:02:24.680 having risen more than twenty percent on Friday. In VideA 0:02:24.760 --> 0:02:27.440 also sings some profit taking. In fact, chips across the board. 0:02:27.720 --> 0:02:30.520 We wait and we watch what will happen tomorrow when 0:02:30.560 --> 0:02:32.239 we get those earnings. I'm so pleased to say that 0:02:32.280 --> 0:02:34.799 our next guest can really dive into the world of 0:02:35.000 --> 0:02:37.840 those stocks, in particular when it comes to video. Let's 0:02:37.840 --> 0:02:42.040 go to Multi Tetaman Global Cio Nancy Curtain. Nancy, it 0:02:42.120 --> 0:02:44.239 is great to get your perspective when you've got such 0:02:44.280 --> 0:02:47.080 an amount of money under assets sixty seven billion dollars 0:02:47.360 --> 0:02:50.840 and you've really seen round corners when it comes to AI, are. 0:02:50.720 --> 0:02:53.160 You thinking we'll sell the news tomorrow? When it comes 0:02:53.200 --> 0:02:53.640 to Video. 0:02:53.960 --> 0:02:57.080 Well, look, Caroline, first of all, lovely to be back again. 0:02:57.200 --> 0:02:59.760 You know, there's seven hundred and seventy one companies and 0:02:59.800 --> 0:03:01.720 now I've seen this week, but there's really only one 0:03:01.720 --> 0:03:04.560 that matters, isn't that? And that is in Video of 0:03:04.600 --> 0:03:09.360 course tomorrow after the close, and there's huge expectations built in. 0:03:09.440 --> 0:03:11.440 I mean, the stock is up nearly fifty percent, a 0:03:11.480 --> 0:03:13.959 little bit of correction today, but the stock is nearly 0:03:14.000 --> 0:03:17.240 up fifty percent, you know, nearly eighteen times over the 0:03:17.320 --> 0:03:20.040 last five years. So it's been on our roll here 0:03:20.040 --> 0:03:22.239 two hundred and thirty percent last year, and of course 0:03:22.639 --> 0:03:26.400 last week it edged out Amazon and Alphabet in terms 0:03:26.480 --> 0:03:29.639 of you know, a size at one point eight trillion, 0:03:30.000 --> 0:03:35.360 expectations are high, Caroline. I think probably they'll deliver. Who knows, really, 0:03:35.440 --> 0:03:38.320 I have no insight into that, but what I can 0:03:38.400 --> 0:03:42.240 say is the demand for in Vidia GPU chip seems 0:03:42.280 --> 0:03:45.520 insatiable at the moment, and I think it's going to 0:03:45.520 --> 0:03:48.560 be more about what Jensen says about the outlook, the 0:03:48.600 --> 0:03:51.840 growth and the product lineup as opposed to what he 0:03:51.840 --> 0:03:53.000 actually delivers in the earning. 0:03:53.160 --> 0:03:54.600 Are you anticipating that really? 0:03:54.600 --> 0:03:57.360 In Video as a winners takes all kind of scenario 0:03:57.640 --> 0:04:00.000 or do we see catch up with other chip makers 0:04:00.160 --> 0:04:01.840 able to make inroads into GPUs. 0:04:02.160 --> 0:04:04.920 Well, look, anytime you have a market that's projected to 0:04:04.920 --> 0:04:08.320 grow eighteen times over the next ten years, where in 0:04:08.440 --> 0:04:12.720 video's ghost margins or seventy percent, you're going to have competition. 0:04:13.200 --> 0:04:16.160 And at the moment, AMD and Intel are producing chips 0:04:16.160 --> 0:04:20.360 that bit rival in video, and of course Jensen calls 0:04:20.400 --> 0:04:25.119 them the frenemies. Who are those Microsoft? Meta, Amazon? They're 0:04:25.160 --> 0:04:28.880 all developing accelerator chips as well. But look, in Vidio 0:04:28.960 --> 0:04:32.360 does not stand still. They continue actually to bring out 0:04:32.360 --> 0:04:34.800 a lot of product releases. You know, we've got the 0:04:34.960 --> 0:04:38.000 H two hundred, We've got the so called Blackwell code 0:04:38.080 --> 0:04:40.720 name Blackwell, and of course we have the X one 0:04:40.760 --> 0:04:43.280 hundred next year. And in each of these what we 0:04:43.400 --> 0:04:49.240 expect is to see greater energy efficiency, more processing capability, 0:04:49.839 --> 0:04:52.080 and lowering costs as well. And this is going to 0:04:52.160 --> 0:04:55.480 be all about the volume story heading forward. But you know, 0:04:55.680 --> 0:04:58.440 don't write off in video. They have a pretty strong 0:04:58.520 --> 0:05:02.040 competitive mode face it. You know, in Vidia is more 0:05:02.080 --> 0:05:05.800 than a hardware company. It's hardware and software and tools 0:05:05.839 --> 0:05:09.159 and development and trainee modules. This is really important for 0:05:09.200 --> 0:05:13.520 the development community Kuda. This is a very very important 0:05:13.520 --> 0:05:17.880 competitive mode that they have certainly Visa AMD and Intel, 0:05:18.400 --> 0:05:23.320 but also in Vidia is cloud and platform agnostics. So 0:05:23.400 --> 0:05:27.080 that's important for enterprises. If you're developing your large language model, 0:05:27.440 --> 0:05:30.280 may not want to be just hitched up to one 0:05:30.360 --> 0:05:33.080 hyper scale or so. There's a lot of you know, 0:05:33.160 --> 0:05:36.800 competitive stuff that Nvidia still has in their favorite talk about. 0:05:36.560 --> 0:05:38.680 The hyperscalers and talk about what we've seen in terms 0:05:38.760 --> 0:05:42.640 of alphabet for example, trying to ultimately provide from the 0:05:42.640 --> 0:05:46.200 cloud perspective. But also when they have been offering the 0:05:46.200 --> 0:05:49.760 competitor to Microsoft's Open AI and being searched and they're like, 0:05:50.440 --> 0:05:52.920 have you been impressed with the way in which big 0:05:52.960 --> 0:05:55.520 tech has been able to ensure that they're not being 0:05:55.560 --> 0:05:58.520 innovated out by some of them will nimble stotups. 0:05:58.920 --> 0:06:01.880 Well, I think it's really interesting, Caroline, is at the 0:06:01.920 --> 0:06:06.000 foundation level, the layer, the digital infrastructure. This is the 0:06:06.000 --> 0:06:09.159 home of big tech. These are billions of dollars just 0:06:09.200 --> 0:06:12.039 a small tech. Yeah, they can't compete, right, But I 0:06:12.040 --> 0:06:14.680 think what we're seeing is a really interesting trend, which 0:06:14.720 --> 0:06:17.920 is big tech and small tech working together. The poster 0:06:18.080 --> 0:06:21.240 trial for that, of course is Microsoft and open AI, 0:06:21.839 --> 0:06:25.159 and then you've got Amazon and Anthropic. But remember last 0:06:25.160 --> 0:06:27.640 week we saw in video reveal a whole bunch of 0:06:27.680 --> 0:06:31.440 investments in small technology. What's going on there? That's because 0:06:31.440 --> 0:06:34.160 they need each other. Small tech is not going to 0:06:34.240 --> 0:06:37.360 have the kind of capital to build the foundation level, 0:06:37.640 --> 0:06:41.320 but large tech needs the innovation coming from small tech, 0:06:41.800 --> 0:06:47.839 the training of models in particular complex areas such as pharmaceuticals, 0:06:47.920 --> 0:06:52.760 drug discovery, autonomous vehicles ARM. You know, this is AI 0:06:52.960 --> 0:06:55.760 on the edge. This is AI and everything we carry 0:06:55.800 --> 0:06:59.640 with us our phones, our tablets, the meters at home, etc. 0:07:00.279 --> 0:07:02.839 So I think this trend of big tech and little 0:07:02.880 --> 0:07:06.800 tech working together goes under a bit of the regulatory scrutiny, 0:07:07.320 --> 0:07:09.840 but it's also a win win for both sides. 0:07:09.960 --> 0:07:13.160 Finnasi as Cio. Where do you gain that exposure? You're 0:07:13.160 --> 0:07:15.520 obviously going to be getting into the publicly traded stocks, 0:07:15.560 --> 0:07:18.000 but where have you found alternatives when you are looking 0:07:18.040 --> 0:07:18.960 at the private markets? 0:07:19.040 --> 0:07:22.240 So three ways that we're looking to play this. Number one, 0:07:22.360 --> 0:07:24.640 we've got passive s and P five hundred exposure, thank 0:07:24.680 --> 0:07:26.920 you very much. It's very cheap so and it means 0:07:26.960 --> 0:07:29.320 we don't underperform, which is a good thing lots of 0:07:29.320 --> 0:07:32.360 people did last year. But the second thing is we're 0:07:32.400 --> 0:07:36.200 adding a global tech manager because we think there's a divergence. 0:07:36.240 --> 0:07:38.240 You know, last year was all about the Magnificent seven, 0:07:38.240 --> 0:07:40.040 you had to own all of them. Take a look 0:07:40.080 --> 0:07:42.840 at this year and Vidia is up nearly fifty percent, 0:07:42.960 --> 0:07:46.920 Tesla's down twenty five Hello, So divergence in performance. We 0:07:47.000 --> 0:07:49.760 also think there will be a broadening in the tech space. 0:07:49.840 --> 0:07:53.640 We see with asml ARM, you know SAP by way 0:07:53.680 --> 0:07:56.720 of example, lots of companies are going to participate as 0:07:56.840 --> 0:08:01.240 they become part of the GENAI journey and opportunity ahead. 0:08:01.600 --> 0:08:05.000 And we also think, you know, smart technology managers focused 0:08:05.040 --> 0:08:08.480 on winners and losers can really think about areas that 0:08:08.520 --> 0:08:10.760 have not been priced in. So those are two things 0:08:10.800 --> 0:08:13.720 we're doing the public market. I talked about big tech 0:08:13.720 --> 0:08:15.960 and little tech. We're going to play that through the 0:08:16.000 --> 0:08:20.200 private markets because we get exposure to leading, leading venture 0:08:20.240 --> 0:08:22.960 and growth managers that are investing in this space. And 0:08:23.000 --> 0:08:25.120 we think that's a phenomenal opportunity because if we get 0:08:25.120 --> 0:08:28.000 that right, those gains aren't like ten percent a year, 0:08:28.440 --> 0:08:32.080 they're absolutely enormous potentially. So we think that's interesting. But 0:08:32.160 --> 0:08:36.440 the final thing I'll say, Caroline is infrastructure. You know, 0:08:36.559 --> 0:08:41.000 Jensen Satin Nadella. There's a trillion dollars of infrastructure spend 0:08:41.000 --> 0:08:44.000 to happen in the digital space. It's not just going 0:08:44.040 --> 0:08:47.640 to be data centers, you know, fiber optics, towers, edge 0:08:47.679 --> 0:08:53.440 computing power, and we think infrastructure very interesting. Uncorrelated to 0:08:53.480 --> 0:08:56.160 the equity markets, has a bit of an inflation hedge. 0:08:56.240 --> 0:08:58.800 That's quite nice given the numbers we saw last week, 0:08:59.120 --> 0:09:00.720 and we're under rutting that to about a ten to 0:09:00.720 --> 0:09:03.080 twelve percent return, so we think that's pretty nice as well. 0:09:03.400 --> 0:09:07.240 Talking diversification, i'll see Tinaman Global Cio Nancy. 0:09:07.360 --> 0:09:08.880 Great to have you back on the show. Coming lovely 0:09:08.920 --> 0:09:10.480 to be here. Thank you there. 0:09:10.520 --> 0:09:13.640 Meanwhile, let's just talk about one of those Magnificent seven 0:09:13.880 --> 0:09:15.760 that we talk about less in the world of ai though. 0:09:15.800 --> 0:09:18.800 Apple's chief operating officer, Jeff Williams is on a reir 0:09:18.880 --> 0:09:21.520 visit to Taiwan to celebrate the fiftieth anniversary of fox Conn. 0:09:21.679 --> 0:09:24.400 It's a company that helped build the iPhone empire by 0:09:24.400 --> 0:09:29.079 assembling those devices to exacting standards in factories across China. Bluwags, 0:09:29.080 --> 0:09:32.280 Mark Gumman, Justice Now what's happening across the ball with Apple. 0:09:32.040 --> 0:09:33.440 And how certain companies. 0:09:33.480 --> 0:09:35.840 He wasn't the only executive to go along to this 0:09:36.679 --> 0:09:40.720 ultimately quite rare event happening in Taiwan. Often executives don't 0:09:40.720 --> 0:09:42.920 want to be making big, flamboyant trips like this. 0:09:44.080 --> 0:09:46.400 Yeah, this is certainly a rare event, but like you said, 0:09:46.400 --> 0:09:49.000 it's a very important occasion. This is the fifty year 0:09:49.040 --> 0:09:53.120 anniversary of Apple's most important partner, and I don't even 0:09:53.120 --> 0:09:57.760 think that's arguable. Fox con builds ninety plus percent of 0:09:57.800 --> 0:10:01.040 the device's Apple cells, the core of the company's business, 0:10:01.400 --> 0:10:05.440 and Jeff Williams, as the company's chief operating officer, he 0:10:05.520 --> 0:10:10.240 really oversees that relationship, along with his top lieutenant, Sabby Kahan, 0:10:10.320 --> 0:10:13.319 who's the senior vice president of operations. So the two 0:10:13.400 --> 0:10:15.640 of them we've reported are in Taiwan for that fifty 0:10:15.760 --> 0:10:19.400 year anniversary. Tim Cook, who really created that relationship a 0:10:19.400 --> 0:10:22.800 couple of decades ago when he became Apple's head of 0:10:22.840 --> 0:10:27.319 operations in the early two thousands, he is not there. Instead, 0:10:27.320 --> 0:10:30.400 we're told that he sent a video message. And obviously 0:10:30.440 --> 0:10:34.480 we're all well aware of the geopolitical challenges related to China, 0:10:34.520 --> 0:10:39.160 and Taiwan. We're aware of the sort of the little 0:10:39.240 --> 0:10:41.600 dance that Tim Cook and other Apple executives have to 0:10:41.640 --> 0:10:45.520 play in terms of managing that relationship in China, and 0:10:45.640 --> 0:10:48.920 perhaps Cook and Apple felt it was more proper for 0:10:49.000 --> 0:10:51.600 Cook not to go to Taiwan for this event, but 0:10:51.720 --> 0:10:53.600 rather send two of his top deputies. 0:10:53.960 --> 0:10:56.840 And maybe he's focused in on the sales or in 0:10:56.920 --> 0:10:59.200 terms of a certain new product that's hit the market 0:10:59.200 --> 0:11:02.040 with Apple. You're talking about with power on this weekend. 0:11:03.240 --> 0:11:05.120 Yeah, the Vision Pro. I mean, first of all, I 0:11:05.160 --> 0:11:08.040 don't think Tim Cook is boarded up in a conference 0:11:08.120 --> 0:11:10.680 room in Kupertino at Apple Park because of this. I 0:11:10.679 --> 0:11:14.000 don't think Apple is at a crisis or anything with 0:11:14.080 --> 0:11:16.720 the Vision Pro. But we have heard that the vision 0:11:16.760 --> 0:11:20.320 Pro return rate is somewhere between average and above average, 0:11:20.320 --> 0:11:23.600 depending on the store the device itself. We've had some 0:11:23.640 --> 0:11:27.400 people complain about the bugginess of the operating system, the 0:11:27.440 --> 0:11:31.520 battery life, and more importantly, the comfort actually being able 0:11:31.520 --> 0:11:34.320 to wear it for long periods of time. So people 0:11:34.360 --> 0:11:36.280 have been setting it back for that reason and why 0:11:36.320 --> 0:11:39.679 that's interesting. Obviously, people buy Apple products and return them 0:11:39.679 --> 0:11:41.880 all the time, but if you're buying the Vision Pro 0:11:42.120 --> 0:11:44.600 at the current price. From the get go, it means 0:11:44.600 --> 0:11:47.240 you're a very early adopter or a massive Apple fan. 0:11:47.679 --> 0:11:48.520 Those are the. 0:11:48.440 --> 0:11:51.320 People who typically are not returning your Apple products, and 0:11:51.360 --> 0:11:53.079 so those are the people doing it this time. That's 0:11:53.080 --> 0:11:55.839 why it's so interesting. In terms of me, I love it. 0:11:55.960 --> 0:11:59.120 I'm continuing to use it. It's buggy, it gets uncomfortable from 0:11:59.160 --> 0:12:02.080 time to time, but it's great for watching video. My 0:12:02.160 --> 0:12:04.920 hope is that it gets better soon. I don't anticipate 0:12:05.000 --> 0:12:08.600 the bugs really dropping into a big Vision OS update. 0:12:08.640 --> 0:12:11.520 That's the operating system till the fall, but I am 0:12:11.559 --> 0:12:13.840 banking on some improvements and they're not two distant future. 0:12:14.200 --> 0:12:15.040 This is version one. 0:12:15.360 --> 0:12:17.760 Mark Gumman, we thank you so much for bringing us 0:12:17.800 --> 0:12:19.400 all across the board of things. 0:12:19.440 --> 0:12:19.760 Apple. 0:12:27.640 --> 0:12:32.720 Bitcoin is the exit strategy. It is the strongest asset. 0:12:32.800 --> 0:12:35.880 So what we see right now is the bitcoin is 0:12:35.920 --> 0:12:39.360 just emerged as a trillion dollar asset class, and it's 0:12:39.400 --> 0:12:43.480 alongside names like Apple and Google and Microsoft. But the 0:12:43.520 --> 0:12:46.920 difference between Bitcoin and the Magnificent seven is Bitcoin's an 0:12:46.920 --> 0:12:47.760 asset class. 0:12:47.800 --> 0:12:48.880 It's not a company. 0:12:49.400 --> 0:12:52.240 There's not enough room in the capital structure of those 0:12:52.280 --> 0:12:55.680 companies to hold ten trillion or one hundred trillion dollars 0:12:55.720 --> 0:12:56.560 worth of capital. 0:12:57.480 --> 0:13:00.440 Of course, that was micro Strategy chairman co founder Sailor 0:13:00.480 --> 0:13:03.760 there of course pretty long bitcoin. His comments come off 0:13:03.800 --> 0:13:06.800 Bitcoin's recent rally to fifty two thousand dollars, It's price 0:13:06.880 --> 0:13:09.360 actually tripling since the start of twenty twenty three, and 0:13:09.440 --> 0:13:12.439 now what Bitcoin might even retest a new record high 0:13:12.440 --> 0:13:15.319 according to some technical analysis. Now consider this, The rally 0:13:15.360 --> 0:13:18.720 includes four straight weeks of increases through February eighteenth, and 0:13:18.720 --> 0:13:21.920 according to data compiled by Bloomberg, in the past five years, 0:13:22.160 --> 0:13:25.840 the cryptocurrency has climbed on average almost fifty percent over 0:13:25.920 --> 0:13:29.040 three months after following a four week winning run that 0:13:29.080 --> 0:13:33.840 would take bitcoin two or seventy eight thousand dollars or thereabouts. Now, 0:13:33.920 --> 0:13:36.320 let's move away from just price points to get a 0:13:36.320 --> 0:13:38.360 read on where people are putting money to work in 0:13:38.440 --> 0:13:41.320 VC and flowing into the wider crypto space. Right now, 0:13:41.400 --> 0:13:44.040 despite last year's downturn, the crypto focused firm hack vc 0:13:44.200 --> 0:13:45.920 is actually just managed to raise one hundred and fifty 0:13:45.960 --> 0:13:49.720 million dollar fund dedicated to the digital asset industry. Let's 0:13:49.720 --> 0:13:52.640 bringing Alex pack On, co founder and managing partner of 0:13:52.679 --> 0:13:55.120 hack vc, and this isn't your first time raising money 0:13:55.160 --> 0:13:56.840 and you've raised two hundred million in the past. This 0:13:56.880 --> 0:13:59.320 is sort of a follow on for what part of 0:13:59.360 --> 0:14:02.320 the ecosystem and what size of companies, what kind of 0:14:02.320 --> 0:14:04.280 problems do you want to see fixed here? 0:14:04.960 --> 0:14:08.160 Yeah, thank you for having me on. Yeah, it was 0:14:08.520 --> 0:14:12.960 a bit of a challenging fundraising environment now versus prior years, 0:14:13.000 --> 0:14:18.080 of course, but for us, we're hyper focused on early 0:14:18.120 --> 0:14:22.080 stage Web three venture capital. I know web three also 0:14:22.200 --> 0:14:24.960 is maybe a word that isn't as common on this 0:14:25.000 --> 0:14:27.360 program than in the last few years. But the thing 0:14:27.400 --> 0:14:31.720 that excites us the most is basically this sort of 0:14:31.800 --> 0:14:35.600 duality in our industry where on the one hand, we've 0:14:35.640 --> 0:14:38.320 been in sort of this prolonged bear market for a 0:14:38.320 --> 0:14:40.600 couple of years, but we're starting to see all this 0:14:40.720 --> 0:14:43.880 upswing in terms of prices and surge of interest from 0:14:44.160 --> 0:14:47.560 the ETF inflows regulatory clarity around the world. But the 0:14:47.600 --> 0:14:52.000 thing that excites us the most is that fundamental usage 0:14:52.080 --> 0:14:54.520 is still growing and still doing really well. So there's 0:14:54.560 --> 0:14:58.760 millions of people using blockchains and using Web three around 0:14:58.760 --> 0:15:03.280 the world, and stable coins are a real killer use case, 0:15:03.440 --> 0:15:06.720 so they're a highlight and our job is to invest 0:15:07.120 --> 0:15:10.400 and goals to invest in sort of the infrastructure that's 0:15:10.480 --> 0:15:13.480 being built right now that can catabult these use cases 0:15:13.480 --> 0:15:15.160 to the mainstream over a multi year period. 0:15:15.320 --> 0:15:17.040 Might surprise you to know that we do have the 0:15:17.080 --> 0:15:18.960 odd person on talking Web three from time to time, 0:15:18.960 --> 0:15:21.000 and a lot of them in your portfolios or indeed 0:15:21.040 --> 0:15:23.200 some unicorns that you've backed in the previous ye is Alex. 0:15:23.240 --> 0:15:25.280 The reason we turn to you is because you do 0:15:25.360 --> 0:15:27.840 have experience, You have back some winners. I think of Avalanche, 0:15:27.880 --> 0:15:30.560 I think of what's happening with DYDX, I think of 0:15:30.640 --> 0:15:32.880 some of the protocols that you've been back in, and 0:15:32.920 --> 0:15:36.680 indeed some of the intersections of Web three and crypto 0:15:36.720 --> 0:15:40.160 and DeFi and ultimately artificial intelligence. How are you thinking 0:15:40.200 --> 0:15:43.480 about access to compute now when you're backing companies like 0:15:44.000 --> 0:15:46.120 crusocloud or a jasper AI. 0:15:46.160 --> 0:15:49.200 When it comes to application of generative AI, yep. 0:15:49.600 --> 0:15:52.880 It's a probably multi trillion dollar topic right now. 0:15:54.280 --> 0:15:56.600 So I think broadly, where. 0:15:56.400 --> 0:15:59.080 We are in the space is sort of like the 0:15:59.120 --> 0:16:02.120 mid nineties equivalent of where the Internet was is where 0:16:02.120 --> 0:16:04.560 we are in crypto today, which is to say, like 0:16:04.640 --> 0:16:07.240 a lot of users and a lot of things happening, 0:16:07.720 --> 0:16:10.640 but the experience of using crypto is really poor. 0:16:11.160 --> 0:16:12.600 From an infrastructure perspective. 0:16:13.120 --> 0:16:17.840 There are it's like slow, it's insecure, there's packs happening 0:16:17.840 --> 0:16:20.400 all the time, and steps and things like that. And 0:16:20.480 --> 0:16:22.600 then the one that you're the area you're talking about, 0:16:22.600 --> 0:16:25.840 which I think is really huge too, is this question 0:16:25.920 --> 0:16:31.040 about how web three can help support AI and the reverse. 0:16:31.760 --> 0:16:35.520 What web three does really really well is it provides 0:16:35.760 --> 0:16:40.440 like democratized access to when it comes to bitcoin or DeFi, 0:16:41.200 --> 0:16:44.760 provides democratized access to financial services, and people around the 0:16:44.760 --> 0:16:47.320 world can get access to dollars and lending and things 0:16:47.360 --> 0:16:50.360 like that. But the other thing it does really well 0:16:50.520 --> 0:16:54.760 is democratize access to resources, right, And so one area 0:16:54.800 --> 0:16:58.960 that's really interesting in crypto AI specifically is this opportunity 0:16:59.040 --> 0:17:04.120 to basically provide AI compute like GPUs, you know, hiring 0:17:04.119 --> 0:17:08.439 the chip stack to AI startups and AI developers around 0:17:08.480 --> 0:17:11.880 the world. That's something that blockchains are great at. There's 0:17:11.920 --> 0:17:15.760 already several multi billion dollar companies in the blockchain industry 0:17:16.200 --> 0:17:19.480 like Crusoe Cloud which is in our Extended Portfolio portfolio, 0:17:20.000 --> 0:17:23.280 and core Weave a few others that are basically big. 0:17:23.440 --> 0:17:27.680 They started as bitcoin mining companies that and they provided 0:17:27.760 --> 0:17:30.680 cheap compute, and it was also very climate friendly. You 0:17:30.680 --> 0:17:34.639 would get compute and entered, you would get energy from 0:17:35.080 --> 0:17:36.919 like in a very cheap way from Exon and Chevron 0:17:36.960 --> 0:17:38.720 that was being wasted and you would use it to 0:17:38.760 --> 0:17:43.720 provide power that would support like the bitcoin ecosystem and mining. 0:17:44.200 --> 0:17:46.560 But now a lot of these companies are also providing 0:17:46.600 --> 0:17:48.960 AI compute and it's democratized, so we can live in 0:17:49.000 --> 0:17:51.880 a world now, I hope once it's successful where it's 0:17:51.880 --> 0:17:54.520 not just open Ai and Microsoft that hog all the 0:17:55.240 --> 0:17:58.280 AI compute and the GPUs. 0:17:57.200 --> 0:18:00.360 Some pivoting there and some app pivoting. Alex It's great 0:18:00.359 --> 0:18:01.600 to have some time with you, of course, back by 0:18:01.600 --> 0:18:04.280 Sekoe Capital Fidelity, Marc Andreesen. It's great to have some 0:18:04.320 --> 0:18:06.439 time with you on the new fund, co founder managing 0:18:06.440 --> 0:18:09.360 partner over at hack VC. Meanwhile, coming up that we're 0:18:09.400 --> 0:18:11.280 going to dive into all the news coming out of 0:18:11.640 --> 0:18:14.560 well another KEYVC player, soft Bang. Of course with the 0:18:14.600 --> 0:18:17.880 Vision Fund, we'll get into that. Meanwhile, watching shares of Ford. Now, 0:18:18.240 --> 0:18:21.760 keep an eye on the price points of evs. We're 0:18:21.760 --> 0:18:24.240 talking Mac three here, we're talking about what's happening with 0:18:24.320 --> 0:18:28.560 Ford having to cut the cost ultimately of their Mustang 0:18:28.680 --> 0:18:31.080 version of the EV. And this is all as we 0:18:31.200 --> 0:18:33.920 see sales really being pulled back an EV, but also 0:18:34.040 --> 0:18:37.040 the supply really ramping up in terms of inventory, so 0:18:37.160 --> 0:18:39.760 Ford slashing the price of its electric Mustang Mustang the 0:18:39.800 --> 0:18:41.720 Mac E after sales plunged. 0:18:41.960 --> 0:18:43.880 It's a bluemotechnology. 0:18:57.480 --> 0:18:59.240 Time now for talking tech, And first up, it's a 0:18:59.240 --> 0:19:03.040 coalition of international law enforcement agencies, including the FBI the 0:19:03.119 --> 0:19:06.000 UK National Crime Agency that have said they have disrupted 0:19:06.040 --> 0:19:08.639 a lot bit one of the most prolific hacker groups 0:19:08.640 --> 0:19:11.960 of all time, including shunning down websites the organization used 0:19:12.040 --> 0:19:16.600 for some ransomware payments. Meanwhile, EU regulators announced a formal 0:19:16.600 --> 0:19:20.399 investigation into TikTok's alleged failure to protect miners who use 0:19:20.440 --> 0:19:22.880 the video sharing platform, which could result in some heavy 0:19:22.920 --> 0:19:26.520 penalties for TikTok owner bike Dance. EU Internal Market Commissioner 0:19:26.520 --> 0:19:29.520 Tierre Breton announced that the social media platform will face 0:19:29.560 --> 0:19:31.040 a formal investigation under the. 0:19:30.960 --> 0:19:33.440 Blocks of Flagship Digital Services Act, which. 0:19:33.240 --> 0:19:35.560 Empowers regulators to levy fines of as much as six 0:19:35.600 --> 0:19:38.359 percent of annual sales or ban repeat offenders from the 0:19:38.400 --> 0:19:42.919 EU plus SoftBank Vision Fund. America's managing partner, Lydia Jet 0:19:43.000 --> 0:19:43.960 is leading the investment firm. 0:19:44.000 --> 0:19:44.800 According to sources. 0:19:44.800 --> 0:19:48.040 Now Jet has represented SoftBank on boards of we of Fanatics, 0:19:48.040 --> 0:19:51.560 a flip Card, of Coupang, among some other companies. There's 0:19:51.560 --> 0:19:53.720 a lot of news surrounding SoftBank at the moment, and 0:19:53.760 --> 0:19:56.040 let's go to the parent company now. The founder, Masayoshi 0:19:56.119 --> 0:19:58.359 Son is considering the creation of a one hundred billion 0:19:58.359 --> 0:20:02.320 dollar chip venture that would supply AI enabling semiconductors. Interesting 0:20:02.400 --> 0:20:04.800 thing is where he's doing this and who with bloemmegs 0:20:04.800 --> 0:20:07.439 alex Web has a story and we should perhaps have 0:20:07.480 --> 0:20:10.359 no surprise at SoftBank, having taken money from Saudi Arabia 0:20:10.400 --> 0:20:13.080 into the Vision Fund, is equally willing to build a 0:20:13.119 --> 0:20:15.000 new chip reality with the country too. 0:20:16.720 --> 0:20:21.800 Yeah, it's obviously a huge opportunity when it comes to investments. 0:20:21.800 --> 0:20:24.600 Saladi's are sitting on a huge amount of capital. They're 0:20:24.640 --> 0:20:27.240 trying to, of course, diversify their economy away from oil. 0:20:27.320 --> 0:20:30.520 This is not news. The fact is that you have 0:20:30.600 --> 0:20:33.439 to wonder whether Saudi's are once bitten twice shy in 0:20:33.520 --> 0:20:35.760 terms of the money they put into the Vision Fund 0:20:35.840 --> 0:20:39.560 and that fund didn't seem to deliver quite as much 0:20:39.560 --> 0:20:41.680 as it promised from day one. But at the same time, 0:20:41.920 --> 0:20:45.720 we are still seeing Saldi plowerhead with efforts to bolster 0:20:45.760 --> 0:20:50.560 their domestic manufacturing efforts. Whether this chip chip venture that 0:20:50.960 --> 0:20:54.000 you know, Bloomberg sources report mass Yoshi Sona is exploring 0:20:54.040 --> 0:20:56.960