Speaker 1: I'm Caroline High and bloom Bugs World headquarters in New York,
Speaker 1: and I made Lovelow, also in New York. This is
Speaker 1: Bloomberg technology coming up all in on AI. Artificial intelligence
Speaker 1: is emerging as the next big investment in Silicon Valley.
Speaker 1: That's Microsoft ways a ten billion dollar investment in the
Speaker 1: chat GPT creator. But Crypto continues to make headlines with
Speaker 1: coin based announcing layoffs and Cameron binkle Bloss pushing for
Speaker 1: the ouster of d c g CEO Barry Silbert and
Speaker 1: a lackluster launched from Virgin Orbit puts on a dent
Speaker 1: into England's first ever space launch. And let's dig into
Speaker 1: that so much more ed because it was the talk
Speaker 1: of the town and talk of the world. There's all
Speaker 1: eyes on whether Microsoft would put such an enormous chunk
Speaker 1: of change to work when it comes to chat GPT.
Speaker 1: Let's talk about it with bloombug Intelligences and run just
Speaker 1: talk us through why Microsoft will put such a significant
Speaker 1: amount of money, yes, distributed over several years. Why go
Speaker 1: into this isn't all about being Oh no, not just
Speaker 1: about being I think it's about every product that they have.
Speaker 1: You know, I would say that you know, everybody's been
Speaker 1: talking about AI for over the decade. We've heard Watson,
Speaker 1: but I think this investment shows that, um, you know,
Speaker 1: it is the season for AI going forward. Because one
Speaker 1: of the things you have is you have a customer
Speaker 1: that is taking your software product, or is you brought
Speaker 1: a software product. Now you've got to give something more
Speaker 1: and return to that particular person to enhance that productivity.
Speaker 1: And AI or you know, natural ligumage processing is one
Speaker 1: way to do it. You know, whether it's tails automation,
Speaker 1: whether it's an email, whether it's office, you can see
Speaker 1: any software backage. Microsoft has um this can enhance the
Speaker 1: productively of that particular applicating and arractive reports suggests that
Speaker 1: this transaction should value open ai it around twenty nine
Speaker 1: billion U S dollars. I points out that both Open
Speaker 1: ai Microsoft declined to comment on the story, which of
Speaker 1: course is based on on Bloomberg sources. Is this chat
Speaker 1: GPT the next big development in global technology? Is this
Speaker 1: going to be the story of the year for your world?
Speaker 1: So I don't think it's just chat GPT. I think
Speaker 1: it's a question of whether there are certain advancements in AI.
Speaker 1: You know, it could be natural language processing, it could
Speaker 1: be vision, it could be other areas as well. You know,
Speaker 1: what can you do with it in your normal day
Speaker 1: to day products. You know, it's not that they're going
Speaker 1: to sell this chack product to you know, somebody as
Speaker 1: as a stand alone thing. But let's imagine that you
Speaker 1: have a you're a salesperson and you're using Microsoft products
Speaker 1: to manage all your sales lead and you walk into
Speaker 1: the office and the and the system tells you that
Speaker 1: your highest probability of closing the deal today is these
Speaker 1: five people. And that's based on a lot of the emails, conversations,
Speaker 1: what's happening outside um. All of those things can enhance
Speaker 1: the value of your your thought with which then you're
Speaker 1: allowed to sell much more than Let's take a competitor,
Speaker 1: whether it's article, let's your push really fascinating as to
Speaker 1: how this is going to be a creative and our
Speaker 1: grandam we thank you was always bring back intelligence. Meanwhile,
Speaker 1: let's dig into whether this is a movement in terms
Speaker 1: of profitability, whether this is some sort of paradigm shift.
Speaker 1: Even Nico nactusers with us is managing director at General Catalyst,
Speaker 1: and you've been quoted as saying just that Nico talking
Speaker 1: about how this might be some sort of new new
Speaker 1: mobile kind of paradigm shift, the move to AI, generative AI.
Speaker 1: Just talk to us about the opportunities you see. Yeah, Hi,
Speaker 1: excited to be here. I has been a lot in
Speaker 1: the news lately for a few reasons. There has been
Speaker 1: a slew of big brave rut in the form of
Speaker 1: foundation models, combined with all the useful demos that we've
Speaker 1: seen recently like TRADGPTY where the profile fixture generators have
Speaker 1: re literally captured the imagination of developers. This developer attempts
Speaker 1: is always a great time of an emerging ecosystem. We're
Speaker 1: saying that all these models are now tracting also a
Speaker 1: different than the larger class of builders, more product people.
Speaker 1: All the previous and reasons of AI and AMAL systems
Speaker 1: before needed a lot of technical expertise that was mostly
Speaker 1: PC students that were a PC folks that were working
Speaker 1: for really big companies in order to create anything useful.
Speaker 1: So now it's very much a question of imagination and
Speaker 1: open AI is one of the few companies that have
Speaker 1: been driving this way, one of the innovation, but we're
Speaker 1: still in the very early days. We at GC are
Speaker 1: seeing a lot of young technical gen z founders want
Speaker 1: to build product for themselves, and oh my god, one
Speaker 1: out of three of them that walked to our office
Speaker 1: are pitching us ideas. Hen Karen and I have had
Speaker 1: a lot of fun with chat GPT in our spare time.
Speaker 1: We get the use cases, but I think we're kind
Speaker 1: of really interested in the business model and the valuation
Speaker 1: here right, the reported valuations for open aie billion dollars,
Speaker 1: but the idea it right is the open AI licenses,
Speaker 1: Chat GPT and the underlying algorithms to developers as a
Speaker 1: venture capitalists, why is this such an attractive potential investment. Look,
Speaker 1: I can't comment you on that particular you know, transaction,
Speaker 1: because I'm mostly spending my time on all things you know,
Speaker 1: early states. But AI indeed the new take part dying
Speaker 1: that we've been waiting for, after mobile, after a cloud, um,
Speaker 1: and it's going to change everything that we know it.
Speaker 1: It's now happening for two major reasons, you know, especially
Speaker 1: for all things generative. A. I. The output of these
Speaker 1: models can have very clear practical applications. If you're a
Speaker 1: creative person, for example, now you can have this set
Speaker 1: of superintelligence that can help you have ideas, pat up
Speaker 1: your work, and generally help you be more creative and productive,
Speaker 1: so you can see results right away. You can produce
Speaker 1: a new blog cost and your creative campaign with images
Speaker 1: really quickly and triply. Um You can also interact with
Speaker 1: these AI models and natural language. You don't need to
Speaker 1: learn some complex computer applications to use them, which you
Speaker 1: can be a game developer pretty much overnight, Nico. What's
Speaker 1: so interesting is that, look, Google and Microsoft, these companies
Speaker 1: are AI experts, and they've dominated the field and certainly
Speaker 1: R and D in the space for a long time,
Speaker 1: but hasn't been sort of the pr headaches in many
Speaker 1: ways generative AI has exposed them to in the past.
Speaker 1: That has left a space for some of this really
Speaker 1: exciting startup culture to breed within AI. Absolutely so, when
Speaker 1: you have like young founders who can now think you're
Speaker 1: with all these foundational AI models and the question of imagination,
Speaker 1: they're going to be able to build whatever they have
Speaker 1: in mind. The youth live in the future in their heads,
Speaker 1: and they're going to reinvent online dating. They're gonna reinvent
Speaker 1: how they're going to do their homework. They're going to
Speaker 1: reinvent how to build games. Um, if you work for
Speaker 1: a big company, it's really tricky to build new products
Speaker 1: because at the minimum you need to ask your attorneys.
Speaker 1: G C would be living responsible innovation. That's our investment
Speaker 1: pieces and we on inverst of course, and folks who
Speaker 1: have good ethics and integrity. This old way of like
Speaker 1: moving quickly and breaking things, that was the ear of
Speaker 1: building products and siliconbild in the past has come to
Speaker 1: an end when you gender racing the founders really, you know,
Speaker 1: don't embrace that, Henico, we just had thirty seconds here.
Speaker 1: What have you used chat GBT for? What's your favorite
Speaker 1: use case? My favorite use case is to put together
Speaker 1: investment memos. It's amazing. I have to do it, it's
Speaker 1: part of my job, and with chatty, I can do
Speaker 1: it in like three minutes. That's incredibly pragmatic. Well, have
Speaker 1: you on again for a more robust discussion about how
Speaker 1: to best use chat GBT? Nikko but not source, Managing
Speaker 1: director at General Catalyst, Thank you very much, Gosh expect
Speaker 1: something a little more exciting coming up. What's the future
Speaker 1: of meme stocks as bed bath and beyond catches attention,
Speaker 1: We'll discuss all this and more next with the CEO
Speaker 1: of the social platform for traders stock twits. This is
Speaker 1: Bloomberg in terms of a company that's teetering and probably
Speaker 1: going to go over the bridge. I mean, there's one
Speaker 1: copy that comes to mind. Uh, it's it's it's bed
Speaker 1: Bath and Beyond. I think that you know, they're not
Speaker 1: going to be around a year from now. I mean,
Speaker 1: they have too much that they're they're irrelevant. Um and
Speaker 1: uh and and by the way, the housing market, like
Speaker 1: I said as well for clip and that's not going
Speaker 1: to help them either. Blue Capital Markets analyst Anthony to
Speaker 1: come with there pretty grim about bed Bath and Beyond
Speaker 1: the fundamentals. At least, let's just take a look at
Speaker 1: the shares because despite the fundamental story where we're worrying
Speaker 1: about bank up, see you're actually seeing the company closing up.
Speaker 1: Yes it's just two dollars, but still and I mean
Speaker 1: continues to really rally on the back of well meme
Speaker 1: stock investing. Is it back? Sask a man who knows
Speaker 1: Rohi Kanno is with us. He is the CEO of
Speaker 1: stock twitch. It's a real time social network for investors
Speaker 1: and traders. Six million news is known ness. And we
Speaker 1: asked our own audience whether they think meme stock trading
Speaker 1: is back, and no, it would see you. We put
Speaker 1: a pole outsw to Twitter and overall they said the
Speaker 1: trend is dead. What are you seeing in terms of
Speaker 1: a desire to be backing these meme companies again? You know,
Speaker 1: I think the trend went compared to the context of
Speaker 1: one and the game stop fiasco over early twenty one.
Speaker 1: You know that that that I don't think we'll ever
Speaker 1: see those kinds of craziness again. But you know, the
Speaker 1: meme stocks, your bed Beth and Beyond and others are
Speaker 1: very much still alive in the world of the trading
Speaker 1: and investing community that's quite active. They're still here, um
Speaker 1: and you know, alive and well might be aggressive. And
Speaker 1: with these you know, as we just saw in the
Speaker 1: segment there, Bed Bath and Beyond, there's a lot of
Speaker 1: questions of whether it will be alive. You know, they
Speaker 1: made their announcements last week around going concerns and you
Speaker 1: know with the wider than expected loss that they posted
Speaker 1: today and kind of misrevue expect expectations. Uh, you know,
Speaker 1: there's a lot of barriers sentiment around there. But you know,
Speaker 1: but the community is still actively talking about it, you
Speaker 1: know from you know, from our community. The message volume
Speaker 1: you know, the last few days has been extremely high. Um.
Speaker 1: And with meme stocks in general, the message volumes have
Speaker 1: retained for some So you know, AMC still finished last
Speaker 1: year two as the number one most talked about Stockholm
Speaker 1: stock wits. It was number one in one as well.
Speaker 1: Uh so you know, still around um, you know, and
Speaker 1: the conversations are still happening with these companies. Hey, Rischie,
Speaker 1: good to see. We're just showing some of the top
Speaker 1: stock tickers on your platform. And see another kind of
Speaker 1: known meme stock, Tesla being another one. But where I
Speaker 1: love your jumper, It says for our audience New York
Speaker 1: or nowhere you just sweatshirt, sweatshot. Here we go. We
Speaker 1: just talked about the energy on your platform, right. I
Speaker 1: look at the headline. When when do you ever get headlined?
Speaker 1: It says X company headed for bankruptcy and you see
Speaker 1: a stock jump. My question is what is it that's
Speaker 1: driving the energy on your platform? Is it this herd narrative?
Speaker 1: Is it the idea that there are short sellers there?
Speaker 1: What is it that is actually causing volume of conversation. Well,
Speaker 1: I think it is the the volatility around it, right,
Speaker 1: It is the combination of those. So you have you know,
Speaker 1: those short sellers and those that are fundamental investors and
Speaker 1: are telling us for all the reasons why you know,
Speaker 1: bed bath and beyond likely you know, may not be
Speaker 1: around in a year from now. At the same time,
Speaker 1: you have those that you know, believe in you know,
Speaker 1: look at the price action, believe in the opportunities, you know,
Speaker 1: and get together and say, hey, you know this is
Speaker 1: a company like they can reorganize, and you know, what
Speaker 1: value can we find in this? And so the the debate,
Speaker 1: the conversation remains, there's passion around moving these you know,
Speaker 1: today's move, we don't you don't really know, like I mean, hey,
Speaker 1: it was a pretty big move on a percentage basis.
Speaker 1: Today is that short covering you know from the loads
Speaker 1: of last week and the announcements of last week, right, uh,
Speaker 1: you know, uh, and when the news finally coming out today,
Speaker 1: so sell on the news or cover on the news.
Speaker 1: So you know, the conversation continues to happen, and it's
Speaker 1: this you know, discovery process between the bears and the bulls.
Speaker 1: And while you know, the bears are very strong right now,
Speaker 1: and the sentiment around bad bathroom beyond specifically is extremely bearish. Uh,
Speaker 1: the conversation still happens. The markets are alive, right, people
Speaker 1: are still trading it. It's you know, the volumes are
Speaker 1: there and the cash tagging. I say, I didn't realize
Speaker 1: that it was your guys. It was stock Twits that
Speaker 1: came up with a when the cash tag I'm interested
Speaker 1: in We talked sentiment, We've talked particular names. What was
Speaker 1: so interesting in all the most active names on your
Speaker 1: platform was a lot of them were evs, not just Tesla,
Speaker 1: but ones that are based out in Asia and Vietnam,
Speaker 1: some smaller known companies. Is the I'm gonna be evy?
Speaker 1: Is it gonna be Ai? Can you see the beginning
Speaker 1: the pickups and certain narratives, you know, we uh, we
Speaker 1: are speaking of AI right, And I just saw the
Speaker 1: second on chat ept fascinating. Um though I've also only
Speaker 1: used it for boring things thus far. Um. But uh,
Speaker 1: but you know, I think you look at that and
Speaker 1: for us, actually we're that's the area that we want
Speaker 1: to invest into, try to help us understand better. Even
Speaker 1: all the data and the and the content that we
Speaker 1: have underlying it. You know, we have our sentiment analytics
Speaker 1: and some of these other things, but you can definitely
Speaker 1: start to see trends. You know, maybe not far ahead,
Speaker 1: but you know, in some cases you know a little
Speaker 1: bit ahead of them. What you know, kind of the
Speaker 1: maybe mainstream and media picks up on UM. And you know,
Speaker 1: evs are a very interesting space because evs, a lot
Speaker 1: of them went public through spacts. Spats have a large
Speaker 1: retail community around them, and so there's a lot of
Speaker 1: passion around the evs. Obviously, you have Tesla, which is
Speaker 1: you know, kind of the godfather of not only just
Speaker 1: all you know stocks, but the ev world. But you
Speaker 1: have your Mullins and your Lucids, and you know, uh,
Speaker 1: your Fhiskers, etcetera, etcetera. And you know we have we
Speaker 1: have CEOs from them something that believe the CEO of
Speaker 1: Fisker is active on stock to its um. But you know,
Speaker 1: these these companies have really robust followings and highly engaged followings,
Speaker 1: maybe because they got in at this back or maybe
Speaker 1: because hey I love Tesla and I hate Mullen, or
Speaker 1: I love you know what. You know, the next you know,
Speaker 1: product to come out of Fisker and so you know,
Speaker 1: I think that's gonna you know, destroy Mullin or whatever
Speaker 1: the case may be, right, um. And so these are
Speaker 1: very retail driven stocks. I think just you know, the
Speaker 1: genesis for a lot of them coming out of the
Speaker 1: back world being very spac retail driven. UM. And so
Speaker 1: you will continue to I do think ine will continue
Speaker 1: to see a lot of conversation around the EV world.
Speaker 1: I think, you know, there's a lot of interesting things
Speaker 1: that are gonna happen in the e V space. We're
Speaker 1: gonna see, if you know, what happens with Tesla and
Speaker 1: and that's gonna be a bell weather for the conversation there.
Speaker 1: But uh, there's I don't know, the AI has really
Speaker 1: made it in to um the kind of public stock
Speaker 1: and public markets that guys, right, you know, I don't know,
Speaker 1: there's not a lot of companies you'd trade on their Hey, Richie,
Speaker 1: when when that moment happens? Though, come back on the
Speaker 1: show and let us know, because we're trying to stay
Speaker 1: on top of trends and this is the new era
Speaker 1: of markets engagement. That's Rishi Kanna, the CEO of the
Speaker 1: social platform stock Twits, is not the only social platform
Speaker 1: and markets in the news will cover that later on.
Speaker 1: Thank you very much. Over the last three years or so,
Speaker 1: we've added forty billion dollars of organic revenue to that business,
Speaker 1: so there's tremendous growth, and in part it's through innovation,
Speaker 1: and you articulate an example, a digital formulary or the
Speaker 1: evolution of our virtual care capabilities and taking virtual care
Speaker 1: not just the Triagion urgent care event, but actually to
Speaker 1: coordinate behavior health services who are virtual primary care from
Speaker 1: that standpoint, so we see tremendous interest adoption for those services.
Speaker 1: That was signal CEO David Cordani on expanding digital health services,
Speaker 1: part of an interview from JPMorgan Healthcare conference in San Francisco,
Speaker 1: which is well underway. Kaylee Lines is on the ground
Speaker 1: braving the storm's wind, rain and hail. Is it like
Speaker 1: that in the conference room? Kayley, Well, it's very crowded
Speaker 1: in the conference room, and I will tell you that much,
Speaker 1: and a lot of people walking in here with umbrellas
Speaker 1: and raincoats over the last several hours because the rain
Speaker 1: has been coming in sideways. But it's really noteworthy that
Speaker 1: there are so many people here in San Francisco in
Speaker 1: the middle of this storm. This is the largest in
Speaker 1: person gathering of the health care industry we have seen
Speaker 1: in about three years, and that really speaks to this
Speaker 1: idea that the post COVID world and what that digital
Speaker 1: health world really looks like is a key theme here
Speaker 1: at this conference. This idea that you have to have
Speaker 1: accessibility to healthcare remotely in a more expanded way, and
Speaker 1: that also over the course of the pandemic, a lot
Speaker 1: of those physicians we're dealing with burnout. What can you
Speaker 1: do you from a technological innovation standpoint to help providers
Speaker 1: in the industry but also really just accelerate the industry
Speaker 1: going forward. In AI in particular is a big theme
Speaker 1: that has been talked about over the last two days
Speaker 1: here Cools. It is we've been talking about AI throughout
Speaker 1: the entire show, so ALTI and Intenlligent is going to
Speaker 1: meet from incenter and healthcare too. But one of the
Speaker 1: applications that Katie on one other areas of technology of
Speaker 1: being talked about, well, on the AI front, you are
Speaker 1: seeing some deals to health existing companies accelerate their footprint
Speaker 1: in that way. Beyond tech actually today announcing in six
Speaker 1: four million dollar deal to buy Insta Deep, which is
Speaker 1: a UK company really based on AI. You're seeing some
Speaker 1: other deals actually taking shape as well. Granted they're relatively small.
Speaker 1: We've only seen about a few billion dollars worth announced
Speaker 1: over the course of this week, but this is still
Speaker 1: an industry that has been very starved for deals. Over
Speaker 1: the last year, two U S healthcare companies had forty
Speaker 1: three fewer deals announced than in one for biopharma. It
Speaker 1: was the lowest in numbers, and we're really looking to
Speaker 1: see if there is kind of a pickup in that
Speaker 1: deal making appetite in Hey, Kayleie, I think I'm right
Speaker 1: and saying you spoke to the CEO of Novovacs, right,
Speaker 1: what was the what was the takeaway? Well, it's really
Speaker 1: for that company how they capture more share of the
Speaker 1: endemic market since during the pandemic they were a bit
Speaker 1: behind on their pure COVID vaccine. But we had an
Speaker 1: interesting conversation around pricing now that that is going to
Speaker 1: be shifted to the commercial market. Just take a listen
Speaker 1: to what he said about his expectations. I think Weiser
Speaker 1: and Maderna have set the stage and I think what
Speaker 1: they've started at a reasonable level. If you look at
Speaker 1: what the cost benefit analysis is for for that type
Speaker 1: of pricing. I think it's reasonable, and there's always a
Speaker 1: discount from that hundred hundred and thirty dollar rage, and
Speaker 1: each company will find his own way. So it's really
Speaker 1: going to be a conversation about what that private pricing
Speaker 1: looks like. Frankly, what the appetite for COVID vaccines will
Speaker 1: still continue to years we get further and further out
Speaker 1: from the most most acute stages of the pandemic, and
Speaker 1: how these companies reinvent themselves in a post COVID world
Speaker 1: as well amy an area we can, despite a recession,
Speaker 1: continue to be optimistic about sunny healthcare, so many applications.
Speaker 1: Blue mos Kady lines weathering it out there in San Francisco.
Speaker 1: We thank her for it. Stay well, keep drying. I'lcome
Speaker 1: back to Bluemo Technology. I'm Karain High in New York
Speaker 1: and one I love good afternoon. It is fun to
Speaker 1: be in the same place and and I mean all
Speaker 1: day we have been talking about one Microsoft potentially buying
Speaker 1: while not buying, but investing some ten million dollars into
Speaker 1: open Ai. Of course a parent chat GBT, but what
Speaker 1: about actual startup acquisitions, what about big deals with about
Speaker 1: activity there now? Actually we know that it dropped venture
Speaker 1: backed M and A dropped some from twenty two, but
Speaker 1: there are glimmers of hope and one Katie Ruth for
Speaker 1: about it for this Business Week, Kasey just took us
Speaker 1: through the thinking. So I POS kind of dead, But
Speaker 1: does that mean what we get a little bit more
Speaker 1: M and a intens of exits exactly? So you know,
Speaker 1: as you know, venture capitalists can only make money in
Speaker 1: two ways I p O S or M and A.
Speaker 1: Those are the two primary types of liquidity events. And
Speaker 1: so the I p O window has largely been closed
Speaker 1: for over a year, and so that's going to put
Speaker 1: pressure on more companies to sell. Even Adobe Figma, which
Speaker 1: we broke the news of last year, they partly sold
Speaker 1: because there was no I p O window. It was
Speaker 1: a great price. They sold for twenty billion dollars that
Speaker 1: was more than double their last private evaluation. But there
Speaker 1: was no alternative in the near term and they knew that.
Speaker 1: And so we're going to see some deals that are
Speaker 1: going to sell maybe above their last private valuation. But
Speaker 1: what we're probably going to see a lot more of
Speaker 1: is companies recognizing that they have to sell for below
Speaker 1: their last private valuation. Evaluations are obviously down significantly. There's
Speaker 1: no I p O window, and there's also, you know,
Speaker 1: a lot of investors skepticism about investing at the same
Speaker 1: prices as before, and so that will lead to that. Hey, Katie,
Speaker 1: you and I were both in Vegas last week, very busy,
Speaker 1: and you're very busy. You go to all the parties
Speaker 1: you know who to talk to. I kind of got
Speaker 1: a mixed picture, right, There is some opportunities that folks
Speaker 1: see in terms of deals that can get done. I
Speaker 1: guess when Caroline and I are talking to venture capitis
Speaker 1: in particular, they talk about kind of seed stage as
Speaker 1: being an opportunity, for example, where you can make some
Speaker 1: vets in an environment like this. But what kind of
Speaker 1: deals where do you expect activity to happen at least
Speaker 1: in the first half of this year. Sure, certainly investors
Speaker 1: who invest early are less phased by the difficult exit
Speaker 1: environment because they have a longer term um outlook. But
Speaker 1: for companies that are growth stage, they're going to have
Speaker 1: to be more open to potential buyers. There's unicorns on
Speaker 1: paper and um, you know, that's that's too many in
Speaker 1: this environment, and so we're going to see more consolidation.
Speaker 1: I'm hearing maybe fintech is going to see, you know,
Speaker 1: there's maybe too many payments companies and they're gonna have
Speaker 1: to consolidate. I always hear that about cybersecurity, and um,
Speaker 1: you know, I think we're going to see a few
Speaker 1: different types of start up acquisitions. We're gonna see strategics
Speaker 1: recognizing they can get a lower price than maybe they
Speaker 1: could have last year or the year before. For some
Speaker 1: of these companies. We're gonna see um, you know, unicorns
Speaker 1: buying each other. And then we're also going to see
Speaker 1: private equity firms buying private companies that are venture backed.
Speaker 1: Maybe they see slowed growth, but they see some potential
Speaker 1: there to help fix them and help them grow into
Speaker 1: bigger businesses. Kasey. What has to happen though, is that
Speaker 1: there has to be more of a meeting in the
Speaker 1: middle of I'm pretty sure last year there was a
Speaker 1: lot of money to be put to work and what
Speaker 1: were many felt was cheap companies, But the founders aren't
Speaker 1: going to want to let go of that company at
Speaker 1: those sorts of valuations. What gets a founder there to
Speaker 1: realize that they have to take that price point. Is
Speaker 1: it ultimately that they've run out of runway exactly? And
Speaker 1: I think that you're going to see more and more
Speaker 1: of that. I mean, certainly a lot of companies raised
Speaker 1: a lot of money in and so some still have
Speaker 1: quite a bit of runway and they may not be
Speaker 1: feeling that pressure yet. But when companies start to look
Speaker 1: and say, oh, we you know, have less than yours runway,
Speaker 1: we're having trouble raising, then a burden hand just looks attractive.
Speaker 1: All right, bloom bers Katie Ruth, who was good to
Speaker 1: hang out. Thank you, come back more scoops please, that's
Speaker 1: what we like. I think it's interesting because CAA, you
Speaker 1: and I have had a range of voices on right.
Speaker 1: We had equities in on twenty four hours ago. Second
Speaker 1: half of this year, I p o s but select names.
Speaker 1: You know, they kind of investors looking for some quality,
Speaker 1: you know, some some strong balance sheet revenue generating companies.
Speaker 1: But there still deals out there to be done. That's
Speaker 1: at least what the takeaway I get from Katie. Let's
Speaker 1: hope that it's not all AI and that all we do,
Speaker 1: every single show is going to be talking aboutficial intention
Speaker 1: and I'm not going to knock it love a little
Speaker 1: bit of sprinkling of AI, but it seems to be
Speaker 1: the dominant force at the moment, certainly from the deals
Speaker 1: we've been hearing about. And I do wonder where the
Speaker 1: first areas to start to see that consolidation that Casey
Speaker 1: was just talking about, and indeed where the cracks are
Speaker 1: in the I p O market that is going to
Speaker 1: see a shot of light that was being talked about
Speaker 1: by equities. And I thought it was really interesting about
Speaker 1: the conversation yesterday is the secondary market is still resolively active.
Speaker 1: And look, there's still gonna be a lot of people
Speaker 1: working for these companies that have life moments that need
Speaker 1: to be able to have a liquidity event, right, and
Speaker 1: you know, the secondary market can be a precursor to
Speaker 1: activity in the I p O market down the line.
Speaker 1: And as Richie said, e VS that play is still popular.
Speaker 1: I'm talking shop a little bit, of course, but maybe
Speaker 1: a big year three. Let's talk crypto that it's not
Speaker 1: gonna be big, Oh, it's going to be a big
Speaker 1: coin base. Just the latest company to announce another round
Speaker 1: of job cards. Meanwhile, Gemini crypt are Exchange co founder
Speaker 1: Cameron binkle Voss is calling on the board of DCG
Speaker 1: to remove CEO Barry Silbert, accusing him of quote bad faith,
Speaker 1: stool tactics, best person for the job here bloom bag
Speaker 1: Shnati Bassak following these developments, Let's start with the accusation. Uh,
Speaker 1: what is this all about. We've seen very open public
Speaker 1: letters from Cameron win Boss that addresses Digital Currency Group
Speaker 1: and Barry Silber here. Remember Genesis, the lending platform, was
Speaker 1: the partner for the Gemini Earn product. And remember when
Speaker 1: it comes that earned product, there are hundreds of thousands
Speaker 1: of retail investors that had exposure to that lending product here.
Speaker 1: So a lot of things have gone wrong in the
Speaker 1: last couple of weeks, and now you have Cameron Winkle
Speaker 1: Boss calling for Barry Solber to step down at the
Speaker 1: CEO of DCG, really accusing him for a lot of
Speaker 1: bad faith tactics, really getting to the edge of accusing
Speaker 1: him misleading investors, really for engaging in something that was fraudulent.
Speaker 1: Of course, we have DCG importantly also fighting back and
Speaker 1: saying that this is also the Winkle Boss effort here
Speaker 1: to deflect blame over to DCG, and at the end
Speaker 1: of the day, what you have is to count our
Speaker 1: parties here in a very difficult decision, both difficult position,
Speaker 1: both on their own as well as together. It's interesting
Speaker 1: DCG was sort of saying, look, behind the scenes, the
Speaker 1: conversations are more productive, some you'd hope a little bit
Speaker 1: more cordial, but in public it's an airing of grievances
Speaker 1: that's painful to see. What's been interesting is amid all
Speaker 1: this fallout, many looking to other areas of Barry Silbert's
Speaker 1: empire to maybe be a place to take a bet, right,
Speaker 1: can you just talk us about what's happening with gray
Speaker 1: Scale and some of the bitcoin trust area. For weeks now,
Speaker 1: maybe even months, really, there has been this really significant
Speaker 1: discount and the gray Scale Trust, and there's this question
Speaker 1: about whether you could take over the gray Scale Trust.
Speaker 1: There's a question of that's even simpler. Is is worth
Speaker 1: buying at these discounts? And has the meaning of the
Speaker 1: Gray Scale Trust really changed? Before it was one of
Speaker 1: the most significant institutional ways to get access to bitcoin,
Speaker 1: and over time it became a bigger bet on whether
Speaker 1: it would become an ETF approved by the SEC. At
Speaker 1: some juncture and if that doesn't happen, what then is
Speaker 1: the investment thesis and how does it change from there?
Speaker 1: Remember this has been a cash count through the feed
Speaker 1: product the fee pool for Digital Currency Group, but then
Speaker 1: you have to look at how much it becomes necessary
Speaker 1: for Digital Currency Group. We're talking about layoffs across the industry.
Speaker 1: Digital Currency Group. You have an open letter from Barry
Speaker 1: Sober out to investors today. Fascinating to see him be
Speaker 1: public like this. He's not all that public usually, we
Speaker 1: have not seen him out there on television or on
Speaker 1: Twitter all that much like we've seen some others. But
Speaker 1: he was talking about having to close down a wealth
Speaker 1: management sin citiary as well as cut costs aggressively the
Speaker 1: last couple of months, which makes a gray scale even
Speaker 1: more important for him. Right cuts, layoffs, crypto, those are
Speaker 1: the headlines right now. Let's let's talk about coin base.
Speaker 1: Another round of layoffs, the latest round of layoffs. What
Speaker 1: do we know about this particular round of layoffs? You know,
Speaker 1: one thing to look at is how investors have reacted
Speaker 1: to it. They reacted very positively today, and not just investors,
Speaker 1: you have also cuth side analysts also reacting pretty positively
Speaker 1: towards this because they believe that it will cut expenses
Speaker 1: significantly enough for par on the screen right, the Stoll
Speaker 1: cop thirteen percent in the session on Tuesday over a
Speaker 1: two day basis, So you're right, positive reaction, very positive
Speaker 1: reaction here. And the idea here is will this help
Speaker 1: them reduce expenses enough to make it through the rest
Speaker 1: of this crypto winter, this huge downturn, this downturn and
Speaker 1: trading volumes that we're seeing now. The question then becomes
Speaker 1: for coin based and all of them, is what does
Speaker 1: this mean for the products that that they're building? Do
Speaker 1: they still are they able to remain competitive here and
Speaker 1: offer new innovative things when you're watching these massive massive
Speaker 1: headcount reductions now. Interestingly, one crypto trade publication has accounted
Speaker 1: twenty seven thousand cuts across the industry. So all in all,
Speaker 1: with what we've seen so far, so we really definitely
Speaker 1: have a lot of pain out there and at the
Speaker 1: hundreds of people of our coin based in addition to
Speaker 1: hundreds before the reality of it is even aces that
Speaker 1: are growing. You take Galaxy Digital, they cut fifteen percent
Speaker 1: of their head count. They think they're going to end
Speaker 1: up gaining a lot of that back through acquisitions later.
Speaker 1: So what do these cuts really mean in terms of
Speaker 1: how they built through this cycle? Well, said Shinnale Bassa
Speaker 1: and quick disclosure that my husband is the senior manage
Speaker 1: over at coin Waste. But let's talk about perhaps the
Speaker 1: movement of talent within this at the moment end, because
Speaker 1: what's so interesting is that while many in fintech crypto
Speaker 1: lose their jobs, there are areas in which maybe they
Speaker 1: could find a head hunter in the future, and not
Speaker 1: the most usual places the one you'd expect Liquidity, which
Speaker 1: is I'm pretty sure most people in finn Twitter as
Speaker 1: it's known Financial Twitter, follow it. It's a massive digital
Speaker 1: media company basically set up by an ex fall street
Speaker 1: guy or girl we don't know anonymously, but they're now
Speaker 1: getting into the world of well jobs right, head hunting.
Speaker 1: So unsurprisingly one of the best read stories of the
Speaker 1: day Liquidity partnering partnering with Whitney Partners kind of classic
Speaker 1: head hunt. Uh. You know what's so interesting. You know
Speaker 1: we talked about crypto osnali job cards pay. What Liquidity
Speaker 1: has done is amazing. You know, they get fed information
Speaker 1: by everyone working in finance about opening salaries raises and
Speaker 1: they've kind of taken that and said, well, how do
Speaker 1: we move it forward. It's an astonishing platform. It is
Speaker 1: very ridicule and meme and satire focus. But if all
Speaker 1: these people are being laid off and they're looking for
Speaker 1: a job, is liquidity now an option? And it just
Speaker 1: also speaks to the growth of where you can take
Speaker 1: what is a social media startup literally is a social
Speaker 1: media start and then becomes a digital media company. I mean,
Speaker 1: the founder has gone into angel investing, but notably is
Speaker 1: now thinking how can I continue to expand how can
Speaker 1: I serve this particular community of junior bankers many of
Speaker 1: them are junior looking for expertise. And they said, well,
Speaker 1: it was the adverts digital advertising that people kept coming to,
Speaker 1: particularly around fostering their own skill base, being what to upskill,
Speaker 1: being able to find out what the view on jobs,
Speaker 1: and how to enhance their own experience. So it looks
Speaker 1: as though millennials but also mainly gen z, are looking
Speaker 1: not just to LinkedIn for networking when it comes to
Speaker 1: a job, but to Instagram and to social medium more broadly. Yeah,
Speaker 1: and you know, I'm a follower stock, Twits and other
Speaker 1: platform don't put us out the job, please come on.
Speaker 1: So I want to take a look at some of
Speaker 1: the tech names that rely on advertising revenue. Right this
Speaker 1: kind of pivotal year where we had the war in
Speaker 1: Ukraine that dented the confidence of advertisers in Europe, we
Speaker 1: had changes in the industry. Long Must buys Twitter, and
Speaker 1: you can see on the chart behind me the kind
Speaker 1: of state of play for what analysts think we end
Speaker 1: two in in terms of sales. Of course, we're waiting
Speaker 1: for those earnings reports from the last three months of
Speaker 1: the year, but we're also thinking about how market share
Speaker 1: might change, how the world of advertising has changed because
Speaker 1: consumer trends are changed. This is data from the Loomberg
Speaker 1: Intelligence Forecast two on kind of where market share lies.
Speaker 1: Alphabet largely through Google Search, but don't forget YouTube kind
Speaker 1: of dominates in that tech space away from traditional tech.
Speaker 1: This data excludes China, by the way, where there are
Speaker 1: many other players when it comes to search and domestic products.
Speaker 1: Then you look at Meta that comes up a big
Speaker 1: second wall. Is that going to change? There are names
Speaker 1: out there in Wall Street that see Meta as a
Speaker 1: top pick for three because we're coming off a low
Speaker 1: base and we might see a rebound, and then there's
Speaker 1: the optimists that look at Amazon and say that's a
Speaker 1: sleeping giant when it comes to adds. I think it's
Speaker 1: really interesting to take this as an inflection point twenty
Speaker 1: three because that's the snapshot of the year as a whole.
Speaker 1: But what we know in those final three months of
Speaker 1: the year going into the first half of this year
Speaker 1: that data carrow is changing, and actually we might see
Speaker 1: some new names emerge and some legacy names suffer as
Speaker 1: the advertising space changes, and the advertising space so richly
Speaker 1: changing terms of players, not only with well the TikTok's
Speaker 1: which keep on taking market share, but also the fact
Speaker 1: that TV is getting into the space the Netflix of
Speaker 1: this world, some other key advertising space that Amazon is
Speaker 1: now owning. Please say A great story written by Alex
Speaker 1: Brinka is on dot com and on the terminal today.
Speaker 1: Certifi of course one of the key tech editors, going
Speaker 1: to join us to talk through all of this and
Speaker 1: the movements within Meta and very other various other social
Speaker 1: players today just talk to us about the changing of
Speaker 1: the guard and how much people are anticipating this three Well,
Speaker 1: for the first time in two we've seen that Meta
Speaker 1: and Google together are less than half of the overall
Speaker 1: digital ad market according to Insider Intelligence, and that is
Speaker 1: not happened since and they expect that share to continue
Speaker 1: to erode as we go into three and beyond. And
Speaker 1: that's due to a number of factors. You mentioned the
Speaker 1: rise of more options on TV and with e commerce
Speaker 1: players like Amazon on and I mentioned Walmart as well. Um,
Speaker 1: but it's also because of some of the challenges in
Speaker 1: the market. Um. Beyond the skittishness due to Ukraine and
Speaker 1: other economic factors, you've got the fact that their ads
Speaker 1: simply aren't as effective anymore because Apple has instituted some
Speaker 1: some tracking changes so that they can't get as much
Speaker 1: as much personal information to target those ads effectively. So
Speaker 1: the same ads are not as useful to advertisers, so
Speaker 1: they've been looking for elsewhere to put their money. Um.
Speaker 1: So that's been really difficult for these big players who
Speaker 1: at the same time or under under scrutiny by regulators,
Speaker 1: especially for antitrust and m privacy. So it's it's going
Speaker 1: to be different going forward. They may not be this
Speaker 1: this big scary do woppoly that the regulators have been
Speaker 1: telling us about for so long. Um. That share may
Speaker 1: road and we may see players like Amazon and Netflix
Speaker 1: and TikTok take up more. You're just talking about sort
Speaker 1: of the data that a lot has sort of disappeared
Speaker 1: from the likes of Meta, the ability to track certain
Speaker 1: people given apples changes. But also there's some self regulation
Speaker 1: going on perhaps as well as to who they target
Speaker 1: how they target them. There's a great piece by cut
Speaker 1: Wagner today about teenagers gender and whether or not that
Speaker 1: can still be thought of as a data piece for
Speaker 1: advertisers and marketers, and and now they're not going to
Speaker 1: be able to look at that. Well. Mena's trying to
Speaker 1: improve the way that it manages teens on the platform
Speaker 1: after after a lot of scrutiny. We've heard a lot
Speaker 1: about mental health online um and how Instagram in particular
Speaker 1: has been affecting teen mental health. So they in part
Speaker 1: because a lot of this pushback from advocates and regulators,
Speaker 1: they have been reducing the ad targeting capabilities for teens.
Speaker 1: So gender is one of those categories. They also reduced
Speaker 1: the abilities to target teams based on their past behavior,
Speaker 1: and that's all an attempt to try to make their
Speaker 1: internet experience a little bit safer, and they didn't go
Speaker 1: directly into whether there was a particular catalyst, But I
Speaker 1: really think that it's been a theme for Meta over
Speaker 1: the past few years, and they realized that the way
Speaker 1: that young people are are operating on their app is
Speaker 1: a matter of great concern to parents and regulators, and
Speaker 1: they need to do something about it, all right. Leading
Speaker 1: our big tech coverage out of San Francisco, Sarah Fryer,
Speaker 1: thank you so much. Now coming up, what happened at
Speaker 1: England's first space launched. The UK's first space Lawns had
Speaker 1: a midflight mishap, smooth take off, you can see it
Speaker 1: there will explain more, trust me, that's all. Next, this
Speaker 1: is Bloomberg going viral, perhaps for a negative reason today
Speaker 1: because Richard Branson's Virgin Orbit when it fell in terms
Speaker 1: of share price, us off of the company's first launch
Speaker 1: out of the United Kingdom, failed to reach said orbit
Speaker 1: that it has in its name, and we can talk
Speaker 1: to the reasons why and why everyone was therefore searching
Speaker 1: in on Google and seeing it trend on Twitter. It's
Speaker 1: putting bugs lawn rush, she covers space for us and
Speaker 1: clearly the share price speaks a lot of words here.
Speaker 1: It did not go as planned. No it did not,
Speaker 1: and you know, unfortunately it's it did look as if
Speaker 1: it was going to go as planned. The way that
Speaker 1: Virgin Orbit launches, it's not what you typically think of
Speaker 1: as a rocket launch, where the rocket takes off from
Speaker 1: the ground. They do an air launch style. So what
Speaker 1: they how they get into space? They have a seven
Speaker 1: forty seven modified plane called Cosmic Girl, which carries their
Speaker 1: rocket launcher one underneath its wing. That plane took off
Speaker 1: as planned from spaceport Spaceport Cornwall. It reached its intended
Speaker 1: drop zone, it reached the target altitude for dropping the rocket,
Speaker 1: and then it ignited that engine. Everything looked fine, and
Speaker 1: then something happened midflight. We don't exactly know what yet,
Speaker 1: but it didn't reach orbit. It didn't make it to space,
Speaker 1: but not to orbit. Yeah, I mean, this was supposed
Speaker 1: to be a key moment for the UK space industry,
Speaker 1: right the Cornwall new key. It's like the surf mecca
Speaker 1: for for the UK. The UK was ready. The UK
Speaker 1: Space Agency, which imagine hasn't been that busy for a while,
Speaker 1: was sort of really excited. What is the response from
Speaker 1: from the company been, Because this was only their sick
Speaker 1: attempt at launching with the Boeing seven four seven mechanism
Speaker 1: right for successes, but this is their second failure. I'm
Speaker 1: trying to understand what went wrong. I think we're all
Speaker 1: kind of trying to understand it as well. I think
Speaker 1: we as the company has stated, something went wrong during
Speaker 1: the second stage booster ignition UM and if you were
Speaker 1: watching the live stream last night, there was some funky
Speaker 1: data coming in. It looked as if the rocket was
Speaker 1: trending in a wrong direction. However, the livestream hosts were
Speaker 1: saying that everything was going well. The social media, the
Speaker 1: Twitter account was tweeting out that they had actually reached orbit,
Speaker 1: but then we learned, you know, that was a premature
Speaker 1: tweet and they actually ended up de leating that tweet
Speaker 1: once they found out that that was incorrect. So it's
Speaker 1: still really unclear what happened. All we know is that
Speaker 1: the all nine payloads were lost, and uh, they're gonna
Speaker 1: be doing an investigation to really figure out what happened. Hey, Lauren,
Speaker 1: irrespective of the failure, what was three D two be
Speaker 1: for for the jin orbit in the UK? Were there
Speaker 1: any kind of big milestones they were hoping to hit? Well,
Speaker 1: they were definitely looking to increase their flight cadence for sure.
Speaker 1: That's one of the benefits that they tout with this
Speaker 1: air launch method is that they're able to be more
Speaker 1: flexible and where they launched from. All they really need is,
Speaker 1: you know, the right runway and then they can and
Speaker 1: the right airspace and they could potentially launched from a
Speaker 1: number of new locations. Plus, this was the first time
Speaker 1: they had launched outside of their normal UH launch facility
Speaker 1: in the Majabbi, California, So it was a big and
Speaker 1: and you know, because of the national pride is so
Speaker 1: created with it, there was a lot of big spotlight
Speaker 1: on this launch, but so unfortunately a lot of people
Speaker 1: did see it go right. So it's unclear if Virgin
Speaker 1: Orbit is going to be able to expedite its launches
Speaker 1: as it as it intended. However, it did only make
Speaker 1: it to orbit twice last year, so it's not not
Speaker 1: a high bar to clear. Yeah, a lot of dash hopes,
Speaker 1: some afraid Bloomberg Space report to Lauren Groush. Thank you
Speaker 1: very much, Caroline. Yeah, I mean knock for anyone in Cornwall.
Speaker 1: We still love you. Meanwhile, that doesn't for this edition
Speaker 1: of bloemag Technology. We Wednesday, and we've got some great conversations.
Speaker 1: We're diving into crypto that little bit more. Salon has
Speaker 1: Head of Strategy, is gonna be here in the studio.
Speaker 1: He hit up podcasts, I Heart Radio, Spotify, Apple, This
Speaker 1: is Bloomberg.