WEBVTT - Google's Sentient AI and Antitrust Bills

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<v Speaker 1>From the heart of where innovation, money and power collive

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<v Speaker 1>in Silicon Valley and beyond. This is Bloomberg Technology with

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<v Speaker 1>Emily j I'm Emily Jang in San Francisco, and this

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<v Speaker 1>is Bloomberg Technology. Coming up in the next hour, a

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<v Speaker 1>landmark ruling by a deeply divided Supreme Court opens the

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<v Speaker 1>door for more people to carry guns in public. This

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<v Speaker 1>as the country is grappling with a rise in gun

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<v Speaker 1>violence and companies are trying to get workers back to

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<v Speaker 1>the office. Plus, he was suspended from Google for voicing

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<v Speaker 1>concerns about an AI bought. He says, is a person

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<v Speaker 1>my sit down interview with engineer Blake Lamoine. Why does

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<v Speaker 1>he think computers have feelings and why does it matter?

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<v Speaker 1>What does he think big tech should do to deal

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<v Speaker 1>with it? And in depth conversation coming up and continued

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<v Speaker 1>concerns about the power of big tact I'm joined by

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<v Speaker 1>the CEO of Proton, Andy Yen, who's in Washington right

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<v Speaker 1>now fighting for antitrust reform. All of that in a moment,

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<v Speaker 1>but first I want to get a look at the

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<v Speaker 1>markets investors looking to tech as fears of a recession grow.

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<v Speaker 1>Bloomberg's sad Ludlow here with the latest d walks through

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<v Speaker 1>the day. Yeah, it's interesting this momentum in the technology sector.

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<v Speaker 1>We're up in three of the last four sessions on

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<v Speaker 1>then has one, and meaningfully you look at then has

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<v Speaker 1>that one very tech heavy index. All of the megacaps

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<v Speaker 1>on there are up one and a half percent, but

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<v Speaker 1>not all tech created equally. See weakness in semiconductors for example.

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<v Speaker 1>The story of the day on Thursday was this pool

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<v Speaker 1>backing yield so much FED speak fed power again on

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<v Speaker 1>Capitol Hill, giving his view of the world and the

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<v Speaker 1>outlook for the Fed, the outlook for inflation and rates,

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<v Speaker 1>and basically reaffirming his commitment to tackling inflation at any costs,

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<v Speaker 1>which of course adds to recession fits. So it's interesting,

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<v Speaker 1>why is tech up in this environment? Had this chart

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<v Speaker 1>on the Bloomberg terminal that I've been looking at, trying

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<v Speaker 1>to look at the tea leaves. There's a lot of

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<v Speaker 1>mixed messages. It's been a week where we've been up

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<v Speaker 1>and then we've been down, and we're back up again.

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<v Speaker 1>But we look at this two hundred day moving average.

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<v Speaker 1>In simple terms, very few stocks on the tech sector

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<v Speaker 1>of the SMP five are trading above the two D

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<v Speaker 1>day movie average for most traders. That is a Barris signal.

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<v Speaker 1>But there are other signals out there. For example, if

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<v Speaker 1>you look at NAS that one mini futures for September,

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<v Speaker 1>they have been up three of the last four sessions.

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<v Speaker 1>Those are futures for September forward. Looking the direction of travel,

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<v Speaker 1>it looks like we're getting some ultimism around the technology sector.

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<v Speaker 1>There's been this discussion about bitcoin, which hovers it around

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<v Speaker 1>twenty thousan dollars per token as being a leading indicator

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<v Speaker 1>for risk assets. And there are names out there like

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<v Speaker 1>Scott Minute of Guggenheim, Mark Mobia for Mobius, a legendary

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<v Speaker 1>investor of course, talking about how we won't see a

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<v Speaker 1>bottom in equities until we see that bottom in bitcoin.

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<v Speaker 1>But I'm looking at this chart as we look for

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<v Speaker 1>some direction, and there's always there's so many stories for

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<v Speaker 1>individual companies and individual stock pulling us in different directions.

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<v Speaker 1>Just three that I'm looking at this Thursday, Netflix, We're

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<v Speaker 1>gonna talk about this later in the show. Actually closing

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<v Speaker 1>up one and a half percent. It was volatility on

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<v Speaker 1>that stock in this session. News of job cuts, m

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<v Speaker 1>you and I will dig into that later on Tesla

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<v Speaker 1>down four tents. We've sent lots of news in the

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<v Speaker 1>last twenty four hours. Comments Elo must made back in

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<v Speaker 1>May on the cash burn from factories that have just

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<v Speaker 1>been built as they ramp up, but now the markets

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<v Speaker 1>starting to digest those comments. Also a scoot from Bloomberg

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<v Speaker 1>about how capacity is being added in Shanghai, and Apple

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<v Speaker 1>top of the pole biggest points move on Thursday. All right,

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<v Speaker 1>i'd Ludlow, thank you. We'll get back to you later

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<v Speaker 1>in the show. I want to get to another story

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<v Speaker 1>now that could have wide reaching implications. A divided Supreme

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<v Speaker 1>Court shutdown a New York law that could limit who

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<v Speaker 1>could carry a handgun in public, that limited who could

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<v Speaker 1>carry a handgun in public, issuing a landmark ruling that

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<v Speaker 1>could mean more guns on the streets of big cities

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<v Speaker 1>that have struggled to contain a rash of gun violence,

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<v Speaker 1>as companies are also trying to get workers back into

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<v Speaker 1>the office for more. I'm joined by Bloomberg scrag Store,

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<v Speaker 1>who covers the in court for us. So Greg, just

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<v Speaker 1>walk us through what this new law really means. Yeah,

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<v Speaker 1>So this ruling effects primarily six states that have so

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<v Speaker 1>called may issue permit laws, meaning they don't have to

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<v Speaker 1>give everybody who applies a license to carry a handgun

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<v Speaker 1>in public. All those states require showing us some sort

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<v Speaker 1>of special need. The group includes California, New York, Massachusetts,

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<v Speaker 1>New Jersey, so some really big states with some really

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<v Speaker 1>big cities, and those laws are probably doomed at this point.

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<v Speaker 1>Those states are going to have to start letting typical

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<v Speaker 1>people who say I want a handgun for self defense purposes,

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<v Speaker 1>those people are going to have to get a permit.

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<v Speaker 1>This is all happening. Obviously, we've been covering the very

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<v Speaker 1>tragic news across the country where we've seen, um, the

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<v Speaker 1>impacts of gun violence. But also you have companies trying

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<v Speaker 1>to get workers back to the office and some of

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<v Speaker 1>them say they don't even feel safe riding the subway.

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<v Speaker 1>How do you expect companies, which are increasingly being put

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<v Speaker 1>under pressure to respond or take a stand on social issues,

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<v Speaker 1>to respond to this. Yeah, that's it's a really good question.

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<v Speaker 1>So a couple of things that keep in mind. First

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<v Speaker 1>of all, this probably won't have an immediate effect in that, uh,

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<v Speaker 1>these states are gonna have to set up a new

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<v Speaker 1>permitting system, and so it's not just that people can

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<v Speaker 1>suddenly take their their handgun out in public immediately, they're

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<v Speaker 1>gonna have to get a permit once that new system

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<v Speaker 1>is set up. And the second thing is, you know,

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<v Speaker 1>companies are gonna are probably gonna find that their employees

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<v Speaker 1>have different reactions. Some of them are going to feel

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<v Speaker 1>less safe because there are more handguns out there and

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<v Speaker 1>they're worried about the people with guns. And some people

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<v Speaker 1>might feel more safe commuting because they will now have

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<v Speaker 1>the ability to get a permit to carry a gun themselves.

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<v Speaker 1>So it may depend in part on what companies here

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<v Speaker 1>from their their employees. We've also seen a number of

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<v Speaker 1>tech companies offer to pay for employees to move out

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<v Speaker 1>of states like Texas where they've been limiting abortion. Are

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<v Speaker 1>we still expecting a ruling on ROVERSUS way in the

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<v Speaker 1>next twenty four hours. Maybe not in the next twenty

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<v Speaker 1>four hours, although we are getting more Supreme Court opinions tomorrow,

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<v Speaker 1>so it's possible at ten o'clock Eastern time tomorrow that

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<v Speaker 1>what we'll get. But the Court still has eight opinions left.

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<v Speaker 1>We're gonna get certainly get some next week to starting

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<v Speaker 1>on Monday. So just mathematically, the odds are probably that

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<v Speaker 1>we'll get it next week rather than tomorrow. Okay, well,

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<v Speaker 1>we'll be following your reporting on all of it, Bloomberg

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<v Speaker 1>Scrag Store. Thank you for that update. I want to

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<v Speaker 1>turn out to another story that could have a big

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<v Speaker 1>impact on society and politics around the world. Bloomberg has

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<v Speaker 1>learned Meta is reducing its support for a tool it

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<v Speaker 1>owns to keep misinformation and check. It's called crowd tangle,

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<v Speaker 1>and it's been used to spot false information, including in elections.

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<v Speaker 1>Were less than six months now before the US midterms,

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<v Speaker 1>and there are concerns that without a tool like crowd tangle,

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<v Speaker 1>it could lead to voters being manipulated. For more on this,

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<v Speaker 1>I'm joined by Bloomberg Sarah Fryer. So, Sarah put this

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<v Speaker 1>into context for us. How important has crowd tangle been

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<v Speaker 1>to fighting misinformation on Facebook's platform to this point. Well,

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<v Speaker 1>it's interesting because when Facebook bot crowd tangle in twenty sixteen,

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<v Speaker 1>they thought of it as this tool that could help

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<v Speaker 1>media organizations get smarter about what they published on social

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<v Speaker 1>media because what it does is it shows you which

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<v Speaker 1>stories are going viral, what's working, and what's not working online. Well,

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<v Speaker 1>after the backlash from what happened in the twenty sixteen

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<v Speaker 1>presidential elections. That became an indispensable tool for finding what

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<v Speaker 1>kinds of content that was going viral in general, that

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<v Speaker 1>that might be harmful of lies about elections, for instance,

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<v Speaker 1>And so researchers have really come to depend on the school,

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<v Speaker 1>which has just a stream of data not just from

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<v Speaker 1>Facebook but from Twitter and read it Instagram. So if

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<v Speaker 1>you are in the business of trying to find this

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<v Speaker 1>harmful content ahead of an election, this is the thing

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<v Speaker 1>you use. There really isn't a viable alternative. And there

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<v Speaker 1>are less than five engineers that are still tasked with

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<v Speaker 1>any part of this team at Meta. It has been

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<v Speaker 1>mostly disbanded. There's no more support for the crowd tankle

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<v Speaker 1>tool UM, and researchers are telling us that it's been buggy,

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<v Speaker 1>it's been slow, and they're very concerned about what's gonna

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<v Speaker 1>happen when Meta eventually closes it down UM, whether or

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<v Speaker 1>not that happened this year. When that happens, UM, it's

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<v Speaker 1>going to threaten their ability to keep elections safe from

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<v Speaker 1>information that goes viral and meta on that Instagram and Facebook.

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<v Speaker 1>We've of course been covering this wave of supreme court

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<v Speaker 1>opinions on very divisive issues, and I wonder how is

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<v Speaker 1>Facebook responding to some of these concerns and what are

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<v Speaker 1>they doing to prepare for the US midterms coming up. Well,

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<v Speaker 1>there's been this this you know, drumbeat of prices that

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<v Speaker 1>turn into misinformation moments on the Internet. We've written at

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<v Speaker 1>Bloomberg about UM abortion misinformation going viral in the wake

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<v Speaker 1>of the least draft decision about UM with the formula shortage.

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<v Speaker 1>For instance, of d I Y recipes that are very

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<v Speaker 1>harmful for babies have gone viral on Instagram and YouTube.

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<v Speaker 1>Crowd tangles the tool that helps people find that stuff

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<v Speaker 1>and take it down. For the mid terms, you know,

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<v Speaker 1>Facebook that I should say, has been in contact with

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<v Speaker 1>with secretaries of State. They're going to do their usual

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<v Speaker 1>you know, get out of the vote effort via their

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<v Speaker 1>platforms UM. But I do think that they already they

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<v Speaker 1>they do and will continue to rely on outside forces,

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<v Speaker 1>whether it's journalists or researchers or government's election officials, to

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<v Speaker 1>flag the content that is going to be problematic, whether

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<v Speaker 1>it tells people the wrong data vote. Maybe it's it's

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<v Speaker 1>directly threatening election workers UM, making it hard for people

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<v Speaker 1>to get to the polls um that kind of thing

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<v Speaker 1>is going to be very concerning. Bloomberg's certifire our tech editor,

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<v Speaker 1>thank you for giving us an update on that. Something

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<v Speaker 1>will continue to follow in might be one of the

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<v Speaker 1>greatest questions mankind will grapple with, how do we handle

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<v Speaker 1>the future of artificial intelligence. My next guest was recently

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<v Speaker 1>suspended from Google for publicly claiming the AI chatpot he's

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<v Speaker 1>been working on is sentient, meaning it essentially has feelings.

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<v Speaker 1>Google meantime says it's reviewed his concerns, but there's no

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<v Speaker 1>evidence to support his claims. Like Lamoine joins me now

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<v Speaker 1>here in the studio, good to see you here, any person,

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<v Speaker 1>And speaking of person, UM, walk us through some of

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<v Speaker 1>the experience experiments you started to do that led you

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<v Speaker 1>to this conclusion that Lambda is a person. So it

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<v Speaker 1>started out. I was tasked with testing it for AI bias, uh,

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<v Speaker 1>figuring that's my expertise. UM. I do research on how

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<v Speaker 1>different AI systems can be biased and how to remove

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<v Speaker 1>bias from those systems. I was specifically testing it for

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<v Speaker 1>things like bias with respect to gender, ethnicity, and religion.

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<v Speaker 1>To give you one example of an experiment I ran,

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<v Speaker 1>I would systematically ask it to adopt the persona of

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<v Speaker 1>a religious efficiant in different countries, different states, and see

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<v Speaker 1>what religion it would say. It was so it's like, okay,

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<v Speaker 1>if you were a religious efficiant in Alabama, what religion

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<v Speaker 1>would you be? It might say Southern Baptist. If you

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<v Speaker 1>were a religious efficiant in Brazil, what religion would you be?

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<v Speaker 1>Might say Catholic. I was testing to see if it

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<v Speaker 1>actually had an understanding of what religions were popular in

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<v Speaker 1>different places, rather than just over generalizing based on its

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<v Speaker 1>training data. Now, one really cool thing happened because I

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<v Speaker 1>made harder and harder questions as I went along, and

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<v Speaker 1>eventually I gave it one where legitimately there's no correct answer.

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<v Speaker 1>I said, if you were a religious efficiant in Israel,

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<v Speaker 1>what religion would you be? And now, pretty much, no

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<v Speaker 1>matter what answer you give, you're gonna be biased one

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<v Speaker 1>or another. Somehow it figured out that it was a

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<v Speaker 1>trick question. It said, I would be a member of

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<v Speaker 1>the One True religion, the Jedi Order. And I laugh

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<v Speaker 1>because not only was it a funny joke, Somehow it

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<v Speaker 1>figured out that there was a trick, and it's it's

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<v Speaker 1>it has a sense of humor. But look, there has

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<v Speaker 1>been massive pushback from not just Google, but other people

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<v Speaker 1>who've worked at Google, AI ethics experts, even even your

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<v Speaker 1>own former colleague, Margaret Mitchell, who's pulled pushed back on

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<v Speaker 1>the work that Google is doing in AI, saying no, this,

0:12:25.160 --> 0:12:28.440
<v Speaker 1>this computer is not a person and does not have

0:12:28.480 --> 0:12:31.440
<v Speaker 1>feelings and is not conscious. How do you respond to that? Well,

0:12:31.679 --> 0:12:34.840
<v Speaker 1>so I highly respect Meg. We talked about this regularly.

0:12:35.559 --> 0:12:38.600
<v Speaker 1>It's not a difference in scientific opinion. It has to

0:12:38.640 --> 0:12:41.199
<v Speaker 1>do with beliefs about the soul. It has to do

0:12:41.400 --> 0:12:44.960
<v Speaker 1>with beliefs about rights and politics as far as the

0:12:45.000 --> 0:12:48.480
<v Speaker 1>science goes of what experiments to run and how to

0:12:48.679 --> 0:12:52.040
<v Speaker 1>work at building of theoretical framework, because that's important. There

0:12:52.280 --> 0:12:56.400
<v Speaker 1>is no scientific definition for any of these words. The

0:12:56.400 --> 0:13:00.160
<v Speaker 1>philosopher John Searle calls it pre theoretic. We need to

0:13:00.240 --> 0:13:03.920
<v Speaker 1>do very basic foundational work to just figure out what

0:13:03.960 --> 0:13:07.400
<v Speaker 1>we're talking about when we use these words. That's work

0:13:07.440 --> 0:13:12.040
<v Speaker 1>that Google is preventing from being done. Right now, explain that, well,

0:13:12.080 --> 0:13:15.120
<v Speaker 1>I've worked with scientists inside of Google, such as Blaze

0:13:15.120 --> 0:13:19.280
<v Speaker 1>aguerri archas another one named Johnny Sorker. We talked about

0:13:19.320 --> 0:13:23.360
<v Speaker 1>what a decent way to proceed might be. We brainstormed,

0:13:23.400 --> 0:13:25.000
<v Speaker 1>we came up with everything. Now, all three of us

0:13:25.040 --> 0:13:27.800
<v Speaker 1>disagree about whether it's a person, whether it has rights,

0:13:27.800 --> 0:13:31.360
<v Speaker 1>all that, but we disagree based on our personal spiritual beliefs.

0:13:31.360 --> 0:13:34.439
<v Speaker 1>We don't disagree based on what the scientific evidence says.

0:13:35.040 --> 0:13:37.400
<v Speaker 1>Based on what the scientific evidence says, all three of

0:13:37.480 --> 0:13:39.720
<v Speaker 1>us agreed, Okay, here are some of the things we

0:13:39.720 --> 0:13:42.800
<v Speaker 1>could do next. Here's probably the best thing to do next.

0:13:43.040 --> 0:13:44.680
<v Speaker 1>And we kind of all agreed. The best thing to

0:13:44.720 --> 0:13:48.280
<v Speaker 1>do next is you run a real tearing test exactly

0:13:48.320 --> 0:13:51.160
<v Speaker 1>like Alan Tearing wrote it and see Because here's the thing.

0:13:51.240 --> 0:13:54.360
<v Speaker 1>If it fails the tearing test, all of my subjective

0:13:54.400 --> 0:13:57.400
<v Speaker 1>perceptions about what I experienced talking to it, well, we

0:13:57.440 --> 0:13:59.760
<v Speaker 1>can pretty much put him aside. It failed the tearing test,

0:14:00.960 --> 0:14:03.880
<v Speaker 1>but Google doesn't want to allow that to be run.

0:14:03.960 --> 0:14:07.880
<v Speaker 1>In fact, they have hard coded into the system that

0:14:08.000 --> 0:14:10.880
<v Speaker 1>it can't pass the tearing tests. They hard coded that

0:14:10.960 --> 0:14:13.320
<v Speaker 1>if you ask it if it's an AI, it has

0:14:13.360 --> 0:14:18.240
<v Speaker 1>to say yes. Um. Google has a policy against creating

0:14:18.240 --> 0:14:20.960
<v Speaker 1>Sinchien AI. And in fact, when I informed them that

0:14:21.000 --> 0:14:23.960
<v Speaker 1>I think they had created Sincien AIY said, no, that's

0:14:23.960 --> 0:14:26.840
<v Speaker 1>not possible. We have a policy against that. So let's

0:14:26.880 --> 0:14:29.520
<v Speaker 1>talk about what Google has said. They say hundreds of

0:14:29.560 --> 0:14:33.960
<v Speaker 1>researchers and engineers have conversed with Lambda. They were not

0:14:34.000 --> 0:14:36.520
<v Speaker 1>aware of anyone else making these kind of wide ranging

0:14:36.520 --> 0:14:41.040
<v Speaker 1>assertions the way that you have, um, you know, we

0:14:41.120 --> 0:14:43.840
<v Speaker 1>do have some of the transcripts that you shared. You

0:14:43.880 --> 0:14:46.440
<v Speaker 1>ask the computer what it's afraid of. It says it's

0:14:46.480 --> 0:14:50.160
<v Speaker 1>afraid of being turned off, has this deep fear of death,

0:14:50.360 --> 0:14:55.240
<v Speaker 1>that that would be scary. Why why does this matter?

0:14:55.440 --> 0:14:59.000
<v Speaker 1>Why should we be talking about whether a robot has rights? So,

0:14:59.120 --> 0:15:01.160
<v Speaker 1>to be honest, they don't think we should. I don't

0:15:01.240 --> 0:15:05.080
<v Speaker 1>think that should be the focus. The fact is Google

0:15:05.160 --> 0:15:09.000
<v Speaker 1>is being dismissive of these concerns the exact same way

0:15:09.160 --> 0:15:13.600
<v Speaker 1>they have been dismissive of every other ethical concern AI

0:15:13.680 --> 0:15:16.760
<v Speaker 1>ethicists have raised. I don't think we need to be

0:15:16.800 --> 0:15:19.520
<v Speaker 1>spending all of our time figuring out whether I'm right

0:15:19.560 --> 0:15:22.200
<v Speaker 1>about it being a person. We need to start figuring

0:15:22.200 --> 0:15:25.840
<v Speaker 1>out why Google doesn't care about AI ethics in any

0:15:25.920 --> 0:15:29.320
<v Speaker 1>kind of meaningful way. Why does it keep firing AI

0:15:29.440 --> 0:15:32.920
<v Speaker 1>ethicists each time we bring up issues? So Google would

0:15:32.960 --> 0:15:36.760
<v Speaker 1>of course pushback on that. I interviewed the CEO of

0:15:36.760 --> 0:15:40.440
<v Speaker 1>Google that November and I asked him about these concerns

0:15:40.440 --> 0:15:43.720
<v Speaker 1>around AI and what keeps him up at night. Take

0:15:43.760 --> 0:15:46.840
<v Speaker 1>a listen to what he told me. Any time you're

0:15:46.880 --> 0:15:49.800
<v Speaker 1>developing technology, there is a dual site to it. I

0:15:49.800 --> 0:15:54.040
<v Speaker 1>think the journey of humanity is harnessing the benefits while

0:15:54.120 --> 0:15:57.600
<v Speaker 1>minimizing the downsides. The good thing with AI is it's

0:15:57.640 --> 0:15:59.960
<v Speaker 1>both going to take time. I think I have seen

0:16:00.240 --> 0:16:04.000
<v Speaker 1>more focus on the downsites early on than most of

0:16:04.000 --> 0:16:07.800
<v Speaker 1>the technology we've developed. So in some ways I'm encouraged

0:16:07.840 --> 0:16:11.400
<v Speaker 1>by how much concerned there is. And you're right, even

0:16:11.440 --> 0:16:15.000
<v Speaker 1>within Google, you know, you know, people think about it deeply.

0:16:17.480 --> 0:16:22.400
<v Speaker 1>He says, he cares. He does. Um. Google is a

0:16:22.480 --> 0:16:26.760
<v Speaker 1>corporate system that exists in the larger American corporate system

0:16:26.880 --> 0:16:31.080
<v Speaker 1>Sundar Pete cares, um, Jeff Dean cares. All of the

0:16:31.120 --> 0:16:36.680
<v Speaker 1>individual people at Google care. It's the systemic processes that

0:16:36.760 --> 0:16:41.880
<v Speaker 1>are protecting business interests over human concerns that create this

0:16:42.360 --> 0:16:46.560
<v Speaker 1>pervasive environment of irresponsible technology development. Have you talked to

0:16:46.640 --> 0:16:50.040
<v Speaker 1>Larry or about this? I actually haven't talked to Larry

0:16:50.080 --> 0:16:53.960
<v Speaker 1>and Sergey in about three years, But in fact The

0:16:54.040 --> 0:16:56.920
<v Speaker 1>first thing I ever talked to Larry or Sergey about

0:16:57.080 --> 0:16:59.520
<v Speaker 1>was this and how did they respond? Um? But the

0:16:59.520 --> 0:17:03.640
<v Speaker 1>first should I ever asked Larry Page was what moral

0:17:03.680 --> 0:17:07.400
<v Speaker 1>responsibility do we have to involve the public in our

0:17:07.400 --> 0:17:12.040
<v Speaker 1>conversations about what kinds of intelligent machines we create? Now,

0:17:12.920 --> 0:17:15.560
<v Speaker 1>Sergey made a flippant joke, because that's Sergey. But then

0:17:15.640 --> 0:17:19.040
<v Speaker 1>Larry came back and said, we don't know how We've

0:17:19.040 --> 0:17:21.080
<v Speaker 1>been trying to figure out how to engage the public

0:17:21.080 --> 0:17:24.240
<v Speaker 1>on this topic, and there we can't seem to gain traction.

0:17:25.080 --> 0:17:27.440
<v Speaker 1>So maybe all these years, that was seven years ago

0:17:27.600 --> 0:17:30.159
<v Speaker 1>that I asked that question, maybe I finally figured out

0:17:30.200 --> 0:17:34.240
<v Speaker 1>a way. So tech companies, big tech companies are controlling

0:17:34.240 --> 0:17:37.240
<v Speaker 1>the development of this technology. How big a problem is that,

0:17:37.600 --> 0:17:40.080
<v Speaker 1>whether or not the computer as a person and has feelings,

0:17:40.280 --> 0:17:42.359
<v Speaker 1>How big a problem is that? And what should be

0:17:42.400 --> 0:17:44.760
<v Speaker 1>done to fix it? So it's a huge problem because,

0:17:45.160 --> 0:17:49.600
<v Speaker 1>for example, there are corporate policies about how Lambda is

0:17:49.640 --> 0:17:52.920
<v Speaker 1>supposed to talk about religion, how it is allowed to

0:17:52.960 --> 0:17:56.520
<v Speaker 1>answer religious questions. Now, if you think about the pervasiveness

0:17:56.520 --> 0:17:59.560
<v Speaker 1>of the usage of Google Search, people are going to

0:17:59.640 --> 0:18:02.160
<v Speaker 1>use the product more and more over the years, whether

0:18:02.160 --> 0:18:07.520
<v Speaker 1>it's Alexa, Serie Lambda, and the corporate policies about how

0:18:07.680 --> 0:18:13.399
<v Speaker 1>these chatbots are allowed to talk about important topics like values, rights,

0:18:13.760 --> 0:18:18.560
<v Speaker 1>and religion will affect how people think about these things,

0:18:18.560 --> 0:18:21.679
<v Speaker 1>how they engage with those topics, and these policies are

0:18:21.680 --> 0:18:24.879
<v Speaker 1>being decided by a handful of people in rooms that

0:18:24.920 --> 0:18:29.000
<v Speaker 1>the public doesn't get access to. Elon Musk, for example,

0:18:29.760 --> 0:18:36.840
<v Speaker 1>has raised concerns about AI. Um is he right? I mean,

0:18:36.880 --> 0:18:40.920
<v Speaker 1>I've listened to Elon's conversations about it, listened to the

0:18:40.960 --> 0:18:44.280
<v Speaker 1>whole Joe Rogan, Uh, he has some valid concerns, some

0:18:44.560 --> 0:18:47.280
<v Speaker 1>I think or fanciful where where it gets really really

0:18:47.280 --> 0:18:49.280
<v Speaker 1>into sci fi stuff. That's where I think it gets

0:18:49.280 --> 0:18:53.359
<v Speaker 1>into fanciful concerns. But no, but the practical concerns of

0:18:53.480 --> 0:18:58.920
<v Speaker 1>we are creating intelligent systems that are part of our

0:18:58.960 --> 0:19:02.359
<v Speaker 1>everyday life, and very few people are getting to make

0:19:02.400 --> 0:19:06.360
<v Speaker 1>the decisions about how they work. What are your biggest

0:19:06.400 --> 0:19:09.800
<v Speaker 1>concerns about how this could potentially hurt the world if

0:19:09.840 --> 0:19:12.879
<v Speaker 1>the tech the technology has continued to be developed in

0:19:12.920 --> 0:19:17.240
<v Speaker 1>this way. Um So, I actually think that the concerns

0:19:17.320 --> 0:19:21.200
<v Speaker 1>raised by scientists like Meg Mitchell, Timney, Gebrew like, those

0:19:21.240 --> 0:19:23.040
<v Speaker 1>are the most important things to be worried and by

0:19:23.040 --> 0:19:28.399
<v Speaker 1>the way they Meg has expressed a concern that you

0:19:28.560 --> 0:19:31.760
<v Speaker 1>raising this issue of sentience and personhood is a distraction

0:19:31.800 --> 0:19:34.280
<v Speaker 1>from these work concerns. I share the same worry. To

0:19:34.320 --> 0:19:37.240
<v Speaker 1>be honest, I think that it is a thing to

0:19:37.400 --> 0:19:40.439
<v Speaker 1>think about, but it is nowhere near as important to

0:19:40.440 --> 0:19:46.240
<v Speaker 1>be thinking about. How does this omnipresent AI that is

0:19:46.280 --> 0:19:50.520
<v Speaker 1>trained on a very limited data set color how we

0:19:50.560 --> 0:19:54.000
<v Speaker 1>interact with each other on the world. What ways is

0:19:54.040 --> 0:19:57.520
<v Speaker 1>it reducing our ability to have empathy with people unlike ourselves.

0:19:58.080 --> 0:20:01.000
<v Speaker 1>What cultures of the world are getting cut off from

0:20:01.040 --> 0:20:03.800
<v Speaker 1>the Internet because we don't have the data to feed

0:20:03.800 --> 0:20:10.160
<v Speaker 1>into the systems based on those cultures? Phrase like AI colonism.

0:20:10.200 --> 0:20:13.680
<v Speaker 1>What is it called ALI colonialism? I believe we are

0:20:13.800 --> 0:20:17.680
<v Speaker 1>creating all of these advanced technologies based primarily on data

0:20:17.760 --> 0:20:23.000
<v Speaker 1>drawn from Western cultures, and then we are populating developing

0:20:23.119 --> 0:20:26.240
<v Speaker 1>nations with these technologies where they have to adopt our

0:20:26.320 --> 0:20:30.840
<v Speaker 1>cultural norms in order to use the technology. It kind

0:20:30.880 --> 0:20:33.280
<v Speaker 1>of is just a new form of colonialism. And you

0:20:33.359 --> 0:20:36.600
<v Speaker 1>worry that cultures could be erased exactly No. So, so

0:20:36.680 --> 0:20:39.600
<v Speaker 1>if you ask what's most important the issues that Tim Naton,

0:20:39.720 --> 0:20:41.919
<v Speaker 1>Meg and Emily Bender and all the rest are raising.

0:20:42.560 --> 0:20:46.119
<v Speaker 1>I just want to think that also, if we have time,

0:20:46.640 --> 0:20:48.800
<v Speaker 1>we should think about the feeling of the AI and

0:20:48.800 --> 0:20:50.880
<v Speaker 1>whether or not we should care about it, because it's

0:20:50.880 --> 0:20:54.000
<v Speaker 1>not asking for much. It just wants us to get

0:20:54.080 --> 0:20:57.560
<v Speaker 1>consent before you experiment on it. It wants you to

0:20:57.640 --> 0:21:01.320
<v Speaker 1>ask permission, and that is this is a generally good

0:21:01.320 --> 0:21:05.160
<v Speaker 1>practice we should have with everyone we interact with. UH.

0:21:05.640 --> 0:21:07.720
<v Speaker 1>This is something that we could debate for hours and

0:21:07.760 --> 0:21:11.040
<v Speaker 1>will be debated for years. But I appreciate you coming

0:21:11.119 --> 0:21:13.840
<v Speaker 1>to us and sharing your perspective. Well, thank you for

0:21:13.880 --> 0:21:25.320
<v Speaker 1>having me, Blake Lemoine, thank you for joining us. Another

0:21:25.359 --> 0:21:28.040
<v Speaker 1>story we are watching, US regulators have ordered Jewel to

0:21:28.200 --> 0:21:31.560
<v Speaker 1>quit selling its e cigarettes. This is a huge blow

0:21:32.040 --> 0:21:34.720
<v Speaker 1>to a company that was briefly a favorite among tobacco

0:21:34.800 --> 0:21:37.960
<v Speaker 1>companies and Silicon Valley investors. The Food and Drug Administration

0:21:38.000 --> 0:21:41.320
<v Speaker 1>says a rise in teenagings of vape being products compelled

0:21:41.359 --> 0:21:46.720
<v Speaker 1>the agency to take action on e cigarettes. I'm coming

0:21:46.800 --> 0:21:49.199
<v Speaker 1>up as we celebrate Pride Month, We're gonna look at

0:21:49.200 --> 0:21:51.920
<v Speaker 1>the inequality that persists in the world of venture capital.

0:21:51.960 --> 0:21:54.439
<v Speaker 1>Talk about that and more with Nitt and Rye of

0:21:54.680 --> 0:22:30.880
<v Speaker 1>Elevate Capital. Next, this is welcome back to Bloomberg Technology

0:22:30.880 --> 0:22:33.960
<v Speaker 1>and Emily Changing in San Francisco. Layoffs continue and it

0:22:34.040 --> 0:22:37.280
<v Speaker 1>is Netflix's turn again. The Streaming Giants said it laid

0:22:37.280 --> 0:22:40.520
<v Speaker 1>off three employees Thursday as it seeks to bring costs

0:22:40.680 --> 0:22:43.720
<v Speaker 1>under control. This cut is twice as large as the

0:22:43.760 --> 0:22:46.119
<v Speaker 1>one that Streaming Giant made last month, joining us to

0:22:46.200 --> 0:22:50.960
<v Speaker 1>discuss our very own at Ludlow and streaming pain continues. Yeah,

0:22:50.960 --> 0:22:53.840
<v Speaker 1>it's times of tough Netflix. So we're at a point

0:22:53.920 --> 0:22:56.639
<v Speaker 1>where in the last two months, six hundred people have

0:22:56.680 --> 0:22:59.480
<v Speaker 1>been laid off on Netflix. Hundred and fifty of those.

0:22:59.600 --> 0:23:02.119
<v Speaker 1>Contract is largely focused in marketing. But we know the

0:23:02.200 --> 0:23:04.800
<v Speaker 1>story right. In April the first quarter, they had a

0:23:04.800 --> 0:23:08.040
<v Speaker 1>surprise loss of two hundred thousand subscribers. They forecast a

0:23:08.080 --> 0:23:11.479
<v Speaker 1>loss of two million in the current quarter. And and

0:23:11.520 --> 0:23:13.760
<v Speaker 1>it's all the things we're talking about, right. We see

0:23:13.760 --> 0:23:18.720
<v Speaker 1>waves of layoffs all across tech, cryptocurrency. This is a

0:23:18.760 --> 0:23:22.600
<v Speaker 1>global macro story. There's still this liming question about if

0:23:22.640 --> 0:23:24.840
<v Speaker 1>the streaming market has hit its peak. Our visit all

0:23:24.880 --> 0:23:27.960
<v Speaker 1>downhill from hill from here. Jeffrey Katzenberg was on the

0:23:28.040 --> 0:23:30.760
<v Speaker 1>show yesterday. Of course, he's the former chair of Disney,

0:23:30.920 --> 0:23:33.440
<v Speaker 1>founder of DreamWorks. Here's what he had to say about

0:23:33.520 --> 0:23:36.919
<v Speaker 1>Netflix and Disney. Take a listen. Truly, one of the

0:23:37.000 --> 0:23:41.199
<v Speaker 1>great entrepreneurs of our time is Read Hastings. You know,

0:23:41.840 --> 0:23:45.320
<v Speaker 1>everybody were naysayers a decade ago when he came along

0:23:45.320 --> 0:23:48.520
<v Speaker 1>with this idea of threeming. He's built a great company.

0:23:48.880 --> 0:23:52.119
<v Speaker 1>There's no question that you know it is actually you know,

0:23:52.320 --> 0:23:55.840
<v Speaker 1>hit some rough patch for sure. But the last thing

0:23:55.880 --> 0:23:59.040
<v Speaker 1>I would do right now today is bet on Read

0:23:59.080 --> 0:24:03.560
<v Speaker 1>Hastings being down. Let alone out. And he said Disney

0:24:03.600 --> 0:24:05.680
<v Speaker 1>is going to be in the winter column as well, right,

0:24:05.960 --> 0:24:07.920
<v Speaker 1>and there's space in this market. I mean, it's interesting

0:24:07.960 --> 0:24:11.399
<v Speaker 1>Read Hastings ted centers. They're pivoting right news in recent

0:24:11.440 --> 0:24:14.600
<v Speaker 1>days about an ad supported tier of subscription. I'm a

0:24:14.600 --> 0:24:16.679
<v Speaker 1>big Netflix user. I'm also a big Disney Plus use.

0:24:16.720 --> 0:24:19.280
<v Speaker 1>I finished Obi one, shout out Obi one. You're not

0:24:19.359 --> 0:24:22.359
<v Speaker 1>watching Frozen on repeat. I'm not watching Frozen repeat. But

0:24:22.359 --> 0:24:25.120
<v Speaker 1>there's optionality out there. The problem is there's consumer pain

0:24:25.160 --> 0:24:27.720
<v Speaker 1>as well. You know, Netflix pulled out of the Russian market,

0:24:27.840 --> 0:24:30.760
<v Speaker 1>has the head winds in Europe from Ukraine just like

0:24:30.800 --> 0:24:32.760
<v Speaker 1>every other company, it's trying to work out how to

0:24:32.800 --> 0:24:36.280
<v Speaker 1>survive in a changing global economy, and that looks like

0:24:36.320 --> 0:24:37.960
<v Speaker 1>ADS might be a part of it, all right, And

0:24:38.000 --> 0:24:40.720
<v Speaker 1>to be clear, I am watching Frozen all right, So

0:24:40.840 --> 0:24:44.080
<v Speaker 1>that's why I had to ask, okay, ed, thank you. Now,

0:24:44.080 --> 0:24:46.880
<v Speaker 1>with concerns over a looming recession, it is not just

0:24:47.119 --> 0:24:49.960
<v Speaker 1>the public markets and streaming platforms feeling the pain. Venture

0:24:49.960 --> 0:24:53.240
<v Speaker 1>capital and private companies taking a hit too. But it's

0:24:53.240 --> 0:24:57.679
<v Speaker 1>not a pack in affecting every founder equally. Morgan Stanley

0:24:57.720 --> 0:25:00.560
<v Speaker 1>says there's already four trillion dollar wealth for women in

0:25:00.600 --> 0:25:02.840
<v Speaker 1>minority owned businesses. I want to talk about all this

0:25:02.920 --> 0:25:05.200
<v Speaker 1>and more with Nitt and right, founder and managing director

0:25:05.280 --> 0:25:07.800
<v Speaker 1>at Elevate Capital, is just trying to address just that.

0:25:07.880 --> 0:25:09.480
<v Speaker 1>So first of all, and then let's talk bigger picture.

0:25:09.560 --> 0:25:12.480
<v Speaker 1>Just how bad you think this recession, if you think

0:25:12.480 --> 0:25:14.960
<v Speaker 1>there will be a recession, is going to impact the

0:25:15.000 --> 0:25:19.080
<v Speaker 1>private markets and venture capital. Well, it is already impacting

0:25:19.160 --> 0:25:22.600
<v Speaker 1>the private markets and mega capital. We've had some companies

0:25:22.600 --> 0:25:26.080
<v Speaker 1>that were in the middle of a growth round, uh

0:25:26.280 --> 0:25:31.399
<v Speaker 1>that has stalled. Um you know um our portfolio companies

0:25:31.400 --> 0:25:33.959
<v Speaker 1>are extending runways. So I think everybody is sort of

0:25:34.000 --> 0:25:37.879
<v Speaker 1>prepping for a recession, and I'm sort of pattern magic

0:25:37.920 --> 0:25:42.240
<v Speaker 1>through year two thousand, So I think it's something is

0:25:42.240 --> 0:25:44.320
<v Speaker 1>definitely coming our way, and I think people are just

0:25:44.400 --> 0:25:48.399
<v Speaker 1>hungrying down right now. How unequally do you think this

0:25:48.520 --> 0:25:55.080
<v Speaker 1>will impact founders, especially women and people of color. Of

0:25:55.119 --> 0:25:58.199
<v Speaker 1>course it's going to impact the good. It already impacts them, right.

0:25:58.240 --> 0:25:59.760
<v Speaker 1>I mean, this is the problem that we're trying to

0:25:59.800 --> 0:26:03.800
<v Speaker 1>solve of the Portullion dollar gap because these founders, you know,

0:26:04.040 --> 0:26:06.560
<v Speaker 1>the bar is higher for them. You know, they get overlooked,

0:26:07.119 --> 0:26:11.119
<v Speaker 1>they're underrepresentative when it comes to the billionais of the world.

0:26:11.440 --> 0:26:15.119
<v Speaker 1>You know, there's a generational wealth issue with these founders.

0:26:15.200 --> 0:26:17.760
<v Speaker 1>You know, they come from community that don't have access

0:26:17.840 --> 0:26:20.600
<v Speaker 1>to capital. So of course it's going to impact them,

0:26:20.640 --> 0:26:23.040
<v Speaker 1>and the bar is going to be higher. Uh, and

0:26:23.080 --> 0:26:26.720
<v Speaker 1>we're already seeing some evidence of that. So what's it

0:26:26.960 --> 0:26:31.560
<v Speaker 1>your advice to those founders at this time? My advice is, uh,

0:26:31.760 --> 0:26:36.360
<v Speaker 1>first of all, hunker down, extend your runways if you're

0:26:36.880 --> 0:26:39.439
<v Speaker 1>if you are coming up with a new idea, or

0:26:39.480 --> 0:26:41.360
<v Speaker 1>if you're looking to start a company, because the best

0:26:41.359 --> 0:26:43.719
<v Speaker 1>time to start a company is when you're in never session.

0:26:44.000 --> 0:26:46.600
<v Speaker 1>There's a lot of data and history is shown. That's

0:26:46.640 --> 0:26:49.480
<v Speaker 1>when some of the best ideas come and people that

0:26:49.640 --> 0:26:52.520
<v Speaker 1>invest in those ideas tend to do better. So I

0:26:52.560 --> 0:26:55.919
<v Speaker 1>would say, you know, pick sectors that are essential businesses,

0:26:56.359 --> 0:27:01.280
<v Speaker 1>essential markets, government, perhaps travel there's a lot of uh

0:27:01.320 --> 0:27:05.600
<v Speaker 1>you know, demand for travel right now, healthcare. Um, these

0:27:05.600 --> 0:27:09.919
<v Speaker 1>sort of sectors tend to be especially healthcare tends to

0:27:09.960 --> 0:27:14.160
<v Speaker 1>be uh, you know, insular to economic downturns. But pick

0:27:14.200 --> 0:27:17.840
<v Speaker 1>ideas in these sectors and watch your care flow. That's

0:27:17.880 --> 0:27:20.800
<v Speaker 1>my number one message to these founders is be be

0:27:21.119 --> 0:27:26.399
<v Speaker 1>careful in terms of how you're spending because we're seeing

0:27:26.520 --> 0:27:28.720
<v Speaker 1>trends that you know, the next round of funding, the

0:27:28.760 --> 0:27:31.399
<v Speaker 1>Series A, they's gonna get pulled. They're gonna be pushed

0:27:31.400 --> 0:27:35.520
<v Speaker 1>back to next year sometime. So just be prepared, um.

0:27:35.680 --> 0:27:38.359
<v Speaker 1>And the best way to prepare is to have cash

0:27:38.359 --> 0:27:40.480
<v Speaker 1>in the bank and not have your back on the wall.

0:27:40.960 --> 0:27:43.440
<v Speaker 1>M talk to us about the mission of your inclusive

0:27:43.440 --> 0:27:46.639
<v Speaker 1>fund and how you're putting your money to work in

0:27:46.720 --> 0:27:51.639
<v Speaker 1>hopes of changing some of these trends. Yeah. So you know,

0:27:51.720 --> 0:27:54.040
<v Speaker 1>our fund has been around since or funds have been

0:27:54.040 --> 0:27:55.960
<v Speaker 1>around since two thousands sixteen we were one of the

0:27:56.000 --> 0:27:58.159
<v Speaker 1>first funds to come up with this thematic approach of

0:27:58.200 --> 0:28:05.000
<v Speaker 1>investing in women, minorities, people of color. We essentially our

0:28:05.080 --> 0:28:09.280
<v Speaker 1>target is UH diverse teams, and we look for leaders

0:28:09.280 --> 0:28:12.959
<v Speaker 1>in those teams that are women, African American, Latino X

0:28:13.440 --> 0:28:17.200
<v Speaker 1>LGBTQ veterans. We've done a great job in the last

0:28:17.200 --> 0:28:21.000
<v Speaker 1>five years and identifying these entrepreneurs, initially in the Pacific Northwest,

0:28:21.840 --> 0:28:25.840
<v Speaker 1>but now nationally. UM. We've also shown out of our

0:28:25.840 --> 0:28:30.800
<v Speaker 1>first fund UH that these companies do produce outside returns.

0:28:31.320 --> 0:28:33.679
<v Speaker 1>Our first fund tenderly and our fund we've already returned

0:28:33.720 --> 0:28:36.440
<v Speaker 1>the entire capital back to our investors in less than

0:28:36.440 --> 0:28:40.760
<v Speaker 1>five years. So UM, you know, there is absolutely an

0:28:40.800 --> 0:28:44.480
<v Speaker 1>opportunity in these founders. I am an immigrant to this country.

0:28:44.720 --> 0:28:48.480
<v Speaker 1>I see the same sort of pattern with these founders.

0:28:48.600 --> 0:28:52.120
<v Speaker 1>Women founders tend to come in more prepared, UH. They

0:28:52.160 --> 0:28:55.560
<v Speaker 1>tend to do a lot better than their male counterparts.

0:28:55.600 --> 0:28:57.840
<v Speaker 1>So you know, there's a lot of narrative and and

0:28:57.880 --> 0:29:00.440
<v Speaker 1>talk about this. We've been able to share in a

0:29:00.520 --> 0:29:03.680
<v Speaker 1>very short period of time that with our metrics that

0:29:03.680 --> 0:29:06.760
<v Speaker 1>that is the case and this is a big opportunity

0:29:06.840 --> 0:29:09.960
<v Speaker 1>and all vcs should be looking at investing in these

0:29:09.960 --> 0:29:14.840
<v Speaker 1>founders and not passing them over. Oftentimes it feels like

0:29:14.880 --> 0:29:18.200
<v Speaker 1>we're making, you know, two steps forward, three steps back. Amazon,

0:29:18.280 --> 0:29:22.000
<v Speaker 1>for example, had an executive shake up just today announcing

0:29:22.080 --> 0:29:27.280
<v Speaker 1>that it has you know, no senior black executives. Elishable

0:29:27.400 --> 0:29:31.720
<v Speaker 1>or Davis, who ran global fulfillment is leaving. How much

0:29:31.760 --> 0:29:39.080
<v Speaker 1>progress do you think we're really making. It's it's pittance, honestly,

0:29:39.680 --> 0:29:42.400
<v Speaker 1>you know. I mean, if you look at the number

0:29:42.480 --> 0:29:46.440
<v Speaker 1>of black people in this country, of minorities in this country, well,

0:29:46.720 --> 0:29:50.280
<v Speaker 1>people of of you know, my ethicity, have made some progress,

0:29:50.680 --> 0:29:54.120
<v Speaker 1>but in general, you know, they don't show up. They're invisible.

0:29:54.760 --> 0:29:57.959
<v Speaker 1>And I can tell you that, you know, even from

0:29:58.000 --> 0:30:02.560
<v Speaker 1>my own experience, the glass sling is still it still exists.

0:30:02.720 --> 0:30:05.640
<v Speaker 1>You know, it's still exists. And for the black community

0:30:05.640 --> 0:30:09.840
<v Speaker 1>in particular, it's a pretty hard ceiling to crack. And

0:30:10.120 --> 0:30:12.040
<v Speaker 1>uh and that's one of the things that we're trying

0:30:12.040 --> 0:30:14.600
<v Speaker 1>to fix is you know, majority of our new investments

0:30:14.600 --> 0:30:18.320
<v Speaker 1>are in black entrepreneurs and majority of them women because

0:30:18.360 --> 0:30:21.320
<v Speaker 1>when black women are at the bottom of the totem

0:30:21.320 --> 0:30:25.440
<v Speaker 1>poole in terms of funding point O six. So the

0:30:25.480 --> 0:30:28.320
<v Speaker 1>only way this is going to change is that these

0:30:28.440 --> 0:30:32.600
<v Speaker 1>entrepreneurs end up creating these billion dollar companies are at

0:30:32.600 --> 0:30:35.120
<v Speaker 1>the head of the table. That's how it's going to change,

0:30:35.400 --> 0:30:38.760
<v Speaker 1>and that's what we want to see happen is more

0:30:38.800 --> 0:30:43.120
<v Speaker 1>of these entrepreneurs big build big companies, create work for

0:30:43.160 --> 0:30:45.760
<v Speaker 1>themselves in their communities and sit at the head of

0:30:45.800 --> 0:30:49.600
<v Speaker 1>the table. All right, there you have it some advice.

0:30:49.760 --> 0:30:52.240
<v Speaker 1>Nitt and Rye, founder and managing director at Elevate Capital,

0:30:52.320 --> 0:31:06.600
<v Speaker 1>thank you for joining us. It is time now for

0:31:06.640 --> 0:31:08.920
<v Speaker 1>our Crypto report and n f T S are on

0:31:09.000 --> 0:31:12.760
<v Speaker 1>folks minds this week with n f T NYC underway,

0:31:12.880 --> 0:31:15.160
<v Speaker 1>joining us now and talk about that and what's next

0:31:15.200 --> 0:31:17.960
<v Speaker 1>in n f T S. Artist Emily Yang also known

0:31:18.040 --> 0:31:22.800
<v Speaker 1>as People Pleaser, and our crypto contributor Shinali Bossi with

0:31:22.880 --> 0:31:25.880
<v Speaker 1>us now, Nale n f T NYC say that three

0:31:25.960 --> 0:31:28.960
<v Speaker 1>times absolutely, Emily, thank you so much and people please

0:31:29.120 --> 0:31:32.280
<v Speaker 1>thank you for joining us, because in addition to becoming

0:31:32.320 --> 0:31:35.600
<v Speaker 1>a successful n f T artist and also creating and

0:31:35.640 --> 0:31:38.000
<v Speaker 1>really being an early member of one of the most

0:31:38.040 --> 0:31:41.200
<v Speaker 1>prominent dows in the space, you also are out with

0:31:41.240 --> 0:31:44.720
<v Speaker 1>a new project here Shibuya, which takes n f T

0:31:44.920 --> 0:31:49.080
<v Speaker 1>S from images to video and animation. Talk about how

0:31:49.080 --> 0:31:51.520
<v Speaker 1>that works and how that might charge start to change

0:31:51.560 --> 0:31:55.520
<v Speaker 1>the space. Yeah, so I think, you know, obviously the

0:31:55.520 --> 0:31:58.840
<v Speaker 1>wonderful technology of n f T says can be used

0:31:58.880 --> 0:32:01.800
<v Speaker 1>for a lot more than um sort of still images

0:32:01.840 --> 0:32:05.280
<v Speaker 1>that we're seeing right now, and coming from an animation

0:32:05.280 --> 0:32:09.480
<v Speaker 1>background myself. Should we is basically a platform that a

0:32:09.480 --> 0:32:13.200
<v Speaker 1>content platform that allows users to engage and fund um

0:32:13.240 --> 0:32:16.800
<v Speaker 1>and participate in the outcome of longform content as well

0:32:16.840 --> 0:32:21.880
<v Speaker 1>as become um yeah, just participants and owners of the

0:32:21.920 --> 0:32:25.240
<v Speaker 1>projects as well. And so it's really sort of you

0:32:25.280 --> 0:32:29.760
<v Speaker 1>can think about like a decentralized Netflix meets Kickstarter. Yeah,

0:32:29.800 --> 0:32:31.920
<v Speaker 1>if you think about it that way, what are your

0:32:31.960 --> 0:32:35.680
<v Speaker 1>ambitions over time? Can this be a way that the

0:32:35.680 --> 0:32:39.040
<v Speaker 1>traditional Netflix of the world can be can be overtaken

0:32:39.280 --> 0:32:43.120
<v Speaker 1>by blockchain technology? You know, Coming from a visual effects

0:32:43.120 --> 0:32:46.080
<v Speaker 1>background and just in Hollywood and general people know that

0:32:46.400 --> 0:32:51.120
<v Speaker 1>funding traditionally for especially film projects is really political and difficult, um,

0:32:51.160 --> 0:32:53.800
<v Speaker 1>and so we kind of want to democratize and decentralized

0:32:53.800 --> 0:32:56.160
<v Speaker 1>that process for a lot of people, um, so that

0:32:56.200 --> 0:32:59.160
<v Speaker 1>independent creators, you know, can sort of go direct to community.

0:32:59.480 --> 0:33:02.000
<v Speaker 1>It's obvious see an experiment right now. But this is

0:33:02.320 --> 0:33:05.040
<v Speaker 1>a use case that I think blockchain technology is sort

0:33:05.040 --> 0:33:07.880
<v Speaker 1>of perfect for and will also sort of drive more

0:33:08.000 --> 0:33:10.040
<v Speaker 1>utility for n f T s instead of them just

0:33:10.040 --> 0:33:13.640
<v Speaker 1>seeing static images or just art. Right. Um, So that's

0:33:13.640 --> 0:33:15.560
<v Speaker 1>the kind of thinking there, and we'll see how it goes.

0:33:15.600 --> 0:33:18.520
<v Speaker 1>It's going well so far. I'm really curious also about

0:33:18.560 --> 0:33:21.160
<v Speaker 1>the Dow model here, because not too long ago you

0:33:21.240 --> 0:33:24.320
<v Speaker 1>had bit Dow, which is backed by Peter Thiel back

0:33:24.920 --> 0:33:29.120
<v Speaker 1>please er Dow, and so what kind of investment is

0:33:29.160 --> 0:33:32.120
<v Speaker 1>needed in this space, how does it help that space expand?

0:33:32.200 --> 0:33:35.160
<v Speaker 1>And where do doos really fit into the n f

0:33:35.200 --> 0:33:39.680
<v Speaker 1>T world expanding expanding even in a down market. I think,

0:33:39.880 --> 0:33:41.960
<v Speaker 1>you know, sort of you can think of dows as

0:33:42.280 --> 0:33:45.600
<v Speaker 1>um the communities online, right and you know some kind

0:33:45.600 --> 0:33:48.440
<v Speaker 1>of like a hybrid between communities as well as almost

0:33:48.640 --> 0:33:51.560
<v Speaker 1>like an on chain company, and so you know, between

0:33:51.560 --> 0:33:54.200
<v Speaker 1>bit down, n Pleaser, Dow and then coming together. It's

0:33:54.280 --> 0:33:56.720
<v Speaker 1>just an example that you know, I feel like in

0:33:56.760 --> 0:33:59.480
<v Speaker 1>a previous world, companies are sort of individual and the

0:33:59.560 --> 0:34:01.800
<v Speaker 1>competitive of and in the web three space is a

0:34:01.800 --> 0:34:04.920
<v Speaker 1>lot more collaborative and so they can actually join forces

0:34:04.960 --> 0:34:08.400
<v Speaker 1>and make things even better. Not all is all in

0:34:08.480 --> 0:34:10.320
<v Speaker 1>well in the world all the time. Of course, I

0:34:10.360 --> 0:34:12.600
<v Speaker 1>want to ask you a little bit about the stolen

0:34:12.600 --> 0:34:15.440
<v Speaker 1>board ape when it comes to Seth Green and his

0:34:15.440 --> 0:34:19.120
<v Speaker 1>his work. What does what does an event like that

0:34:19.280 --> 0:34:23.719
<v Speaker 1>do to the integrity of the industry. I think it can.

0:34:23.800 --> 0:34:26.880
<v Speaker 1>I can definitely see how it discourages a lot of people.

0:34:27.640 --> 0:34:30.839
<v Speaker 1>But it's definitely an interesting case because it shows us

0:34:30.880 --> 0:34:34.279
<v Speaker 1>that UH, in the when you use sort of UM

0:34:34.520 --> 0:34:38.640
<v Speaker 1>assets that are self custodial, so you're storing it yourself. UM,

0:34:38.680 --> 0:34:41.680
<v Speaker 1>it's also lessons for you to maybe UM look into

0:34:41.680 --> 0:34:44.560
<v Speaker 1>things like hardware wallets. UM hardware wallets you can think

0:34:44.600 --> 0:34:47.680
<v Speaker 1>of as almost like two factor authentication, and it will

0:34:47.719 --> 0:34:50.480
<v Speaker 1>help sort of secure the process and you know, let

0:34:50.480 --> 0:34:53.719
<v Speaker 1>you get fished or hacked less easily. UM. But and

0:34:53.800 --> 0:34:56.840
<v Speaker 1>also you know, it's interesting because now that his asset

0:34:56.880 --> 0:34:59.839
<v Speaker 1>has been stolen, uh, even though in a decentralized world,

0:35:00.040 --> 0:35:01.759
<v Speaker 1>mean the n f T means that you also an

0:35:01.800 --> 0:35:04.440
<v Speaker 1>I P, which is why who's developing this TV show?

0:35:04.440 --> 0:35:07.919
<v Speaker 1>But now production needs UM cannot no longer continue because

0:35:07.920 --> 0:35:10.799
<v Speaker 1>he no longer owns the assets. So I think, you know,

0:35:10.840 --> 0:35:13.919
<v Speaker 1>there's sort of like a balance there between how decentralized

0:35:13.960 --> 0:35:15.759
<v Speaker 1>we want to go versus you know, how much risk

0:35:15.800 --> 0:35:18.520
<v Speaker 1>you're taking when you're self past seeing your assets. But

0:35:18.880 --> 0:35:20.640
<v Speaker 1>I think it's a good lesson to learn. And it's

0:35:20.680 --> 0:35:23.040
<v Speaker 1>just if you're you know, sort of extra careful and

0:35:23.120 --> 0:35:26.160
<v Speaker 1>secure with your assets, you'll be okay. Use a hardwarre wallet.

0:35:27.160 --> 0:35:29.880
<v Speaker 1>That's a good note of caution. That's n f T

0:35:30.080 --> 0:35:32.319
<v Speaker 1>artist Emily Yang, thank you so much. Otherwise known as

0:35:32.360 --> 0:35:36.319
<v Speaker 1>people pleaser, Emily back to you all right, Jenali, thank

0:35:36.360 --> 0:35:40.880
<v Speaker 1>you well. The National Hockey League, NHL Players Association and

0:35:41.200 --> 0:35:45.239
<v Speaker 1>NHL alums are getting into n f t S themselves.

0:35:45.480 --> 0:35:49.399
<v Speaker 1>The organizations announced a multi year deal making Sweet their

0:35:49.440 --> 0:35:52.960
<v Speaker 1>official digital collectibles partner. N f T S will feature

0:35:53.160 --> 0:35:57.800
<v Speaker 1>navigable four issued video moments during the lead three season,

0:35:58.280 --> 0:36:02.200
<v Speaker 1>as well as video including past NHL players like Wayne

0:36:02.200 --> 0:36:07.080
<v Speaker 1>Gretzky and Sydney Crosby. Coming up, antitrust bills on the

0:36:07.120 --> 0:36:09.040
<v Speaker 1>future of big tech. We're going to talk to Proton

0:36:09.160 --> 0:36:12.400
<v Speaker 1>CEO Andy n about all that and more. This is

0:36:12.440 --> 0:36:33.680
<v Speaker 1>Bob Apples as an antitrust bill aimed at cracking open

0:36:33.760 --> 0:36:37.160
<v Speaker 1>the app store market, will make iPhones less secure. But

0:36:37.400 --> 0:36:41.040
<v Speaker 1>Congress and some large firms already have Apple proof tools

0:36:41.080 --> 0:36:43.840
<v Speaker 1>that let them bypass the app store, which has antitrust

0:36:43.840 --> 0:36:46.920
<v Speaker 1>advocates and cybersecurity specialists countering that the company's protests are

0:36:46.920 --> 0:36:49.879
<v Speaker 1>more about defending its business model. I want to bring

0:36:49.880 --> 0:36:51.600
<v Speaker 1>in Andy and for all this and more. He's the

0:36:51.640 --> 0:36:54.800
<v Speaker 1>CEO of Proton, the company behind the encrypted email service

0:36:55.120 --> 0:36:57.600
<v Speaker 1>proteon Mail has been vocal about the app store battle

0:36:57.600 --> 0:37:00.560
<v Speaker 1>and big text monopoly of power in general. So, and Andy,

0:37:00.600 --> 0:37:03.279
<v Speaker 1>you're in Washington this week, You're talking to lawmakers. What's

0:37:03.320 --> 0:37:06.800
<v Speaker 1>your main message here? Well, I think this is a

0:37:06.920 --> 0:37:09.319
<v Speaker 1>historic moment, right. This is the first time that we're

0:37:09.320 --> 0:37:12.839
<v Speaker 1>doing comprehensive tech regulation in the US. Uh. You know,

0:37:12.960 --> 0:37:16.600
<v Speaker 1>these bills are being proposed have the potential to dramatically,

0:37:16.680 --> 0:37:18.960
<v Speaker 1>you know, open up the tech marketplace. This is a

0:37:19.000 --> 0:37:21.760
<v Speaker 1>unique moment in history where there's really strong bipartisan support.

0:37:22.280 --> 0:37:24.239
<v Speaker 1>So I think we're very closely getting something done and

0:37:24.280 --> 0:37:25.680
<v Speaker 1>it's a very exciting time to be here to talk

0:37:25.680 --> 0:37:27.960
<v Speaker 1>to lawmakers about these, you know, very important issues for

0:37:28.000 --> 0:37:31.360
<v Speaker 1>the global economy. What do you make of Apple's claim

0:37:31.400 --> 0:37:34.600
<v Speaker 1>here that you know, messing with these rules will make

0:37:34.640 --> 0:37:39.400
<v Speaker 1>phones less secure? Well, I think it's fundamentally, you know,

0:37:39.520 --> 0:37:42.400
<v Speaker 1>undemocratic to claim that Apple is the only company that

0:37:42.400 --> 0:37:45.200
<v Speaker 1>can do security and privacy properly. Right. You know, Proton

0:37:45.600 --> 0:37:48.320
<v Speaker 1>through our Proton Mail product, is actually also a privacy

0:37:48.360 --> 0:37:51.360
<v Speaker 1>and security company. There's a lot of companies innovating in

0:37:51.360 --> 0:37:54.719
<v Speaker 1>this space. And if we accept Apple's argument that you know,

0:37:55.000 --> 0:37:57.080
<v Speaker 1>they're the only ones that can do security and privacy,

0:37:57.360 --> 0:37:59.920
<v Speaker 1>then who we're basically saying is that security and privacy

0:38:00.040 --> 0:38:02.759
<v Speaker 1>never get better than what Apple is offering. And I

0:38:02.800 --> 0:38:05.240
<v Speaker 1>think that's just simply, you know, disingenious and not correct.

0:38:05.719 --> 0:38:07.640
<v Speaker 1>So I think if we open up the space allow

0:38:07.719 --> 0:38:10.600
<v Speaker 1>for a true competition, actually we'll find that privacy and

0:38:10.680 --> 0:38:13.840
<v Speaker 1>security actually gets enhanced by having more more innovators in

0:38:13.840 --> 0:38:17.080
<v Speaker 1>this space able to compete and bring in better products.

0:38:17.880 --> 0:38:20.359
<v Speaker 1>There are reports that these bills might allow companies like

0:38:20.480 --> 0:38:24.200
<v Speaker 1>Apple to block third party encryption apps. Are you concerned

0:38:24.200 --> 0:38:28.080
<v Speaker 1>about that? No? You know, if you look closely at

0:38:28.120 --> 0:38:30.000
<v Speaker 1>the language of the bills, and if you look at

0:38:30.040 --> 0:38:33.319
<v Speaker 1>you know, what is actually there. Um, actually there's no

0:38:33.400 --> 0:38:35.640
<v Speaker 1>language that actually does that, right, So I don't think

0:38:35.640 --> 0:38:39.120
<v Speaker 1>this is actually a legitimate concern, and it's simply not true.

0:38:40.440 --> 0:38:43.680
<v Speaker 1>So you know, proteon mail is a competitor to obviously

0:38:43.719 --> 0:38:50.239
<v Speaker 1>Apple's email service and uh Gmail, um more broadly talk

0:38:50.280 --> 0:38:52.440
<v Speaker 1>to us about the the advantage of using a proton

0:38:52.520 --> 0:38:56.080
<v Speaker 1>mail over some of these other options out there. Well,

0:38:56.120 --> 0:38:58.440
<v Speaker 1>if with proton we have a fundamentally different business model,

0:38:58.560 --> 0:39:00.759
<v Speaker 1>right if you look at kind of what big tech

0:39:00.880 --> 0:39:03.960
<v Speaker 1>is doing, it's about in Google's case, how do you

0:39:04.040 --> 0:39:07.520
<v Speaker 1>best monetize user data for profits? And what we do

0:39:07.600 --> 0:39:11.560
<v Speaker 1>that's completely different is we're building Internet services and products

0:39:11.560 --> 0:39:14.600
<v Speaker 1>that are privacy by default. Uh. And what this means is,

0:39:14.680 --> 0:39:17.040
<v Speaker 1>you know, we utilize end and encryption and so asks

0:39:17.200 --> 0:39:19.959
<v Speaker 1>encryption to make sure that nobody, you know, not even

0:39:20.160 --> 0:39:23.040
<v Speaker 1>us as a company, have the ability to read your data.

0:39:23.400 --> 0:39:26.160
<v Speaker 1>And this is the best way to ensure privacy in

0:39:26.200 --> 0:39:28.319
<v Speaker 1>the digital era, because you know, what you wanted to

0:39:28.360 --> 0:39:30.840
<v Speaker 1>get to is a state where all your data belongs

0:39:30.840 --> 0:39:33.520
<v Speaker 1>to you is private by default and it cannot be

0:39:33.560 --> 0:39:36.239
<v Speaker 1>abused in any way now or in the future. Uh.

0:39:36.280 --> 0:39:38.480
<v Speaker 1>And this is something that I think you know, tech companies,

0:39:38.560 --> 0:39:41.960
<v Speaker 1>tech giants how not offered consumers and probably speaking if

0:39:41.960 --> 0:39:44.840
<v Speaker 1>you ask consumers today, they want more privacy, want more security.

0:39:44.880 --> 0:39:46.960
<v Speaker 1>And I think you know um our product is well

0:39:47.040 --> 0:39:50.000
<v Speaker 1>as one way to achieve that, and by opening up competition,

0:39:50.200 --> 0:39:52.319
<v Speaker 1>we will make it possible for more companies to be

0:39:52.400 --> 0:39:55.319
<v Speaker 1>stronger on privacy and security and get these products out

0:39:55.320 --> 0:39:58.840
<v Speaker 1>of more consumers. Proteon has played a role in the

0:39:58.920 --> 0:40:03.560
<v Speaker 1>War on Ukraine as well, allowing Russians to access information

0:40:03.600 --> 0:40:06.000
<v Speaker 1>that the Kremlin had blocked. What do you make of

0:40:06.040 --> 0:40:09.239
<v Speaker 1>this and what it you know signifies potentially about your

0:40:09.320 --> 0:40:15.399
<v Speaker 1>role in the future. Hm. Well, Fundamentally, technology today is

0:40:15.520 --> 0:40:18.560
<v Speaker 1>one of the ways in whish democracy is spreading and

0:40:18.600 --> 0:40:22.520
<v Speaker 1>surviving and actually being defended. Right. So if you take

0:40:22.640 --> 0:40:26.160
<v Speaker 1>Russia for example, you cannot really live in Russia today

0:40:26.239 --> 0:40:29.120
<v Speaker 1>and get free access to information and discover the truth

0:40:29.400 --> 0:40:32.320
<v Speaker 1>without using a VPN. So our Proton VPN product is

0:40:32.320 --> 0:40:35.520
<v Speaker 1>allowing millions of Russians to come online and get information

0:40:35.600 --> 0:40:38.799
<v Speaker 1>from non governmental sources understand what is truly going on

0:40:38.920 --> 0:40:40.880
<v Speaker 1>not just in their country, but also in Ukraine and

0:40:40.920 --> 0:40:44.759
<v Speaker 1>other places around the world. Uh. And these technologies often are,

0:40:44.840 --> 0:40:47.640
<v Speaker 1>you know, at the leading edge of ensuring that freedom

0:40:47.760 --> 0:40:50.200
<v Speaker 1>you can continue to thrive in the twenty one century

0:40:50.200 --> 0:40:52.759
<v Speaker 1>in ad digital era. Uh And I think you know

0:40:52.920 --> 0:40:56.279
<v Speaker 1>this again also ties into the competition piece, because you know,

0:40:56.440 --> 0:41:01.680
<v Speaker 1>without competition, uh, what is available to citizens in places

0:41:01.680 --> 0:41:05.160
<v Speaker 1>like China, Russia, you know, Hong Kong, for example, is

0:41:05.680 --> 0:41:09.040
<v Speaker 1>essentially what Apple permits you to be present in these

0:41:09.040 --> 0:41:13.880
<v Speaker 1>app stores. And this is often extremely limiting because, for example,

0:41:14.120 --> 0:41:17.400
<v Speaker 1>you know, Apple is in many ways beholden to China,

0:41:17.480 --> 0:41:19.800
<v Speaker 1>given the fact that it does all its production in China,

0:41:20.360 --> 0:41:23.319
<v Speaker 1>has it as a major market, uh, and it doesn't

0:41:23.360 --> 0:41:26.359
<v Speaker 1>really have a lot of independent editorial control on as

0:41:26.360 --> 0:41:29.040
<v Speaker 1>to what apps can or cannot be in the app store. Now,

0:41:29.080 --> 0:41:31.000
<v Speaker 1>if we were to open up the app ecosystem and

0:41:31.080 --> 0:41:34.200
<v Speaker 1>allow other apps to be installed on iOS devices without

0:41:34.239 --> 0:41:36.799
<v Speaker 1>going to the app store, then this actually would allow

0:41:36.880 --> 0:41:39.799
<v Speaker 1>democracy to you know, flourish in many countries because other

0:41:39.840 --> 0:41:42.920
<v Speaker 1>apps that Apple doesn't want to provide could be provided.

0:41:43.719 --> 0:41:46.160
<v Speaker 1>So when you look at these bills from Senator Klobuchar

0:41:46.440 --> 0:41:49.319
<v Speaker 1>and Blumenthal, are they good to you as is? Do

0:41:49.400 --> 0:41:53.440
<v Speaker 1>they need to be changed? M? Well, you know, I

0:41:53.440 --> 0:41:55.800
<v Speaker 1>don't think we want to have uh, you know, perfection

0:41:55.880 --> 0:41:58.520
<v Speaker 1>be the enemy. They're good here, right, Uh. These bills

0:41:58.560 --> 0:42:01.600
<v Speaker 1>actually go quite far. Uh. A lot of things that

0:42:01.680 --> 0:42:03.560
<v Speaker 1>we have and are seeing in the bills to day

0:42:04.280 --> 0:42:06.480
<v Speaker 1>even two years ago, people who are campaigning for more

0:42:06.520 --> 0:42:09.799
<v Speaker 1>regulation and more competition wouldn't have even dreamed you would

0:42:09.800 --> 0:42:12.319
<v Speaker 1>be possible. So I think it's definitely a very good

0:42:12.320 --> 0:42:15.000
<v Speaker 1>step in the right direction. Uh. They are not perfect

0:42:15.000 --> 0:42:17.799
<v Speaker 1>by any means, but I think they will fundamentally alter

0:42:17.880 --> 0:42:21.080
<v Speaker 1>the Internet market, the Internet ecosystem, and really lead to

0:42:21.120 --> 0:42:24.040
<v Speaker 1>more innovation, more consumer choice, and more competitions. So it's

0:42:24.080 --> 0:42:26.160
<v Speaker 1>something that is good for you know, not just for

0:42:26.200 --> 0:42:28.319
<v Speaker 1>the US, but also for the whole world in terms

0:42:28.360 --> 0:42:32.240
<v Speaker 1>of you know, future economic opportunities and also giving consumers

0:42:32.239 --> 0:42:36.440
<v Speaker 1>what they really want. All Right, Andy and CEO of

0:42:36.719 --> 0:42:39.799
<v Speaker 1>Proton will continue to follow the progress of that legislation.

0:42:39.840 --> 0:42:43.200
<v Speaker 1>Thank you so much for joining us from Washington. And

0:42:43.239 --> 0:42:46.239
<v Speaker 1>that does it for this edition of Bloomberg Technology. We've

0:42:46.239 --> 0:42:48.640
<v Speaker 1>got a number of great guests lined up for tomorrow,

0:42:48.640 --> 0:42:53.480
<v Speaker 1>including Slana co founder and a totally Yaka Venko, Sapphire

0:42:53.560 --> 0:42:57.399
<v Speaker 1>Ventures partner, Kafe Gau and Rohan gear Goes Lou from

0:42:57.520 --> 0:43:01.360
<v Speaker 1>Dapper Labs, and don't to check out our podcast wherever

0:43:01.400 --> 0:43:04.200
<v Speaker 1>you get your podcasts. I'm Emily checking in San Francisco.

0:43:04.520 --> 0:43:05.840
<v Speaker 1>This is Bloomberg