1 00:00:02,200 --> 00:00:05,520 Speaker 1: From the heart of where innovation, money and power. CALLI 2 00:00:06,360 --> 00:00:10,840 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,920 --> 00:00:27,720 Speaker 1: Emily Chay. This is Broomberg Technology. I'm Caroline Hyde in 4 00:00:27,720 --> 00:00:29,920 Speaker 1: New York in Family Chin. Coming up in the next hour. 5 00:00:30,040 --> 00:00:32,720 Speaker 1: It's no longer full steam ahead for Silicon Valley. Consumer 6 00:00:32,760 --> 00:00:35,879 Speaker 1: sentiment is changing quickly, tech sector trying to keep up. 7 00:00:35,880 --> 00:00:38,600 Speaker 1: We'll look at how Amazon and Apple really managed to 8 00:00:38,880 --> 00:00:42,279 Speaker 1: win over these obstacles. Plus, the Chinese government tried to 9 00:00:42,320 --> 00:00:45,080 Speaker 1: create a stealth TikTok account to promote propaganda in the 10 00:00:45,159 --> 00:00:48,000 Speaker 1: US because to look at how Chinese state influence could 11 00:00:48,040 --> 00:00:52,000 Speaker 1: be reaching younger generations. And the FTC is singling caution 12 00:00:52,040 --> 00:00:55,400 Speaker 1: to big tech Mergers chair Lena Khan ruled her staff 13 00:00:55,800 --> 00:00:58,440 Speaker 1: to sue Meta over its acquisition of a VR company, 14 00:00:58,600 --> 00:01:01,040 Speaker 1: which wasn't necessarily an ex pens of deal to begin with. 15 00:01:01,280 --> 00:01:04,960 Speaker 1: We'll discuss the aggressive tone this case is setting. We'll 16 00:01:04,959 --> 00:01:06,600 Speaker 1: get to all of that in about a moment, but 17 00:01:06,680 --> 00:01:10,360 Speaker 1: first let's look at Amazon proving its e commerce power 18 00:01:10,400 --> 00:01:13,520 Speaker 1: and card computing businesses also helping turn out revenue that 19 00:01:14,200 --> 00:01:17,480 Speaker 1: even consumers the worry they're about inflation couldn't offset it 20 00:01:17,520 --> 00:01:20,400 Speaker 1: gave revenue forecast for as much as growth in the 21 00:01:20,480 --> 00:01:24,120 Speaker 1: current period. Really relieved investors, and we saw it in 22 00:01:24,160 --> 00:01:27,040 Speaker 1: the share price reaction. Two thousand and nine best months 23 00:01:27,040 --> 00:01:31,360 Speaker 1: since two thousand and nine. Spencer Soperan covering it, particularly 24 00:01:31,400 --> 00:01:36,000 Speaker 1: the consumer angle, and from the perspective, what's amazing is 25 00:01:36,560 --> 00:01:39,080 Speaker 1: before the earnings, we were really worried about what Walmart 26 00:01:39,120 --> 00:01:41,839 Speaker 1: was suggesting, what Best Buy was suggesting, and then roomth 27 00:01:42,000 --> 00:01:46,000 Speaker 1: just Amazon shows its power and pros. Yeah, there were 28 00:01:46,920 --> 00:01:50,200 Speaker 1: and relief. The word you just used earlier is exactly right. 29 00:01:50,240 --> 00:01:53,480 Speaker 1: There was these kind of expectations you know, kicked in 30 00:01:53,880 --> 00:01:57,240 Speaker 1: and then uh, you know, the results kind of blew 31 00:01:57,240 --> 00:02:00,880 Speaker 1: those concerns away. So investors were very relieved both Amazon 32 00:02:00,960 --> 00:02:04,320 Speaker 1: can resume growth like you say up to in the 33 00:02:04,400 --> 00:02:07,080 Speaker 1: in the current quarter, and also people that aren't spending. 34 00:02:07,120 --> 00:02:10,240 Speaker 1: They shed about a hundred thousand workers and and started 35 00:02:10,240 --> 00:02:13,760 Speaker 1: getting that spending in control, whereas previous quarter they had 36 00:02:13,760 --> 00:02:17,400 Speaker 1: a lot of uh, concerns about over building and having 37 00:02:17,440 --> 00:02:20,680 Speaker 1: too many people, so investors were worried how long that 38 00:02:20,720 --> 00:02:23,280 Speaker 1: was gonna last and drag on. This quarter showed they're 39 00:02:23,360 --> 00:02:25,760 Speaker 1: kind of you know, starting to unwind that and starting 40 00:02:25,800 --> 00:02:29,440 Speaker 1: to see see some uh some more positive signs and 41 00:02:29,520 --> 00:02:31,640 Speaker 1: with a positive size. Of course, the fuecast was what 42 00:02:31,760 --> 00:02:35,360 Speaker 1: relieved any more details you sat there on the cool yesterday, 43 00:02:35,639 --> 00:02:39,280 Speaker 1: Annie Jasse or his team spell out how they managed 44 00:02:39,360 --> 00:02:43,080 Speaker 1: the next quarter. Yeah. One one big thing, especially on 45 00:02:43,120 --> 00:02:46,160 Speaker 1: the spending, was you know, investors are always worried about 46 00:02:46,160 --> 00:02:48,160 Speaker 1: how much how quickly is Amazon going to spend whatever 47 00:02:48,200 --> 00:02:51,639 Speaker 1: comes in, and because of that over build on their 48 00:02:51,639 --> 00:02:54,560 Speaker 1: delivery network, They're not They're gonna cool off on you know, 49 00:02:54,600 --> 00:02:58,200 Speaker 1: warehouses and delivery station and those sorts of things, but 50 00:02:58,240 --> 00:02:59,720 Speaker 1: they are going to spend more and it's going to 51 00:02:59,840 --> 00:03:03,240 Speaker 1: be more targeted on data centers and fueling its cloud 52 00:03:03,240 --> 00:03:05,840 Speaker 1: computing business. So they really gave a signal that they're 53 00:03:05,840 --> 00:03:07,919 Speaker 1: going to double down on the cloud computing and they're 54 00:03:07,919 --> 00:03:10,960 Speaker 1: expecting that to remain strong even as they kind of 55 00:03:10,960 --> 00:03:13,760 Speaker 1: cool off investing on the On the e commerce side 56 00:03:14,200 --> 00:03:18,720 Speaker 1: and what so good or in this particular environment about 57 00:03:18,720 --> 00:03:21,799 Speaker 1: Amazon visa v say the Walmarts, the best buys that 58 00:03:21,880 --> 00:03:24,639 Speaker 1: have such inventory loads that they now need to basically 59 00:03:24,639 --> 00:03:26,799 Speaker 1: cut the price off, is Amazon does have a very 60 00:03:26,840 --> 00:03:28,960 Speaker 1: different sort of business model behind it. How has that 61 00:03:29,000 --> 00:03:32,760 Speaker 1: helped to weather. Yeah, that's a great point. And uh 62 00:03:32,800 --> 00:03:37,280 Speaker 1: and something that really shown in this in this earnings report, 63 00:03:37,560 --> 00:03:42,400 Speaker 1: Amazon has this marketplace model where of the products sold 64 00:03:42,680 --> 00:03:45,600 Speaker 1: in the second quarter, that's the highest set number has 65 00:03:45,640 --> 00:03:49,440 Speaker 1: ever been before come from these independent third party merchants. 66 00:03:49,640 --> 00:03:52,040 Speaker 1: And the main thing that means is when stores like 67 00:03:52,400 --> 00:03:56,160 Speaker 1: Walmart Target have this inventory risk and have to take 68 00:03:56,240 --> 00:03:59,920 Speaker 1: deep discounts on products they've already purchased before they reach 69 00:04:00,000 --> 00:04:03,440 Speaker 1: tell them. Amazon doesn't have that inventory risk. If a 70 00:04:03,520 --> 00:04:06,000 Speaker 1: merchant has to, you know, take the price down on 71 00:04:06,120 --> 00:04:08,200 Speaker 1: something to sell it, even if that merchant takes a loss, 72 00:04:08,560 --> 00:04:11,920 Speaker 1: Amazon is not exposed. Amazon still gets a permission, Amazon 73 00:04:12,000 --> 00:04:14,920 Speaker 1: still gets paid to pack and deliver that product. So 74 00:04:15,000 --> 00:04:18,800 Speaker 1: a lot of this, uh, this marketplace model kind of 75 00:04:18,800 --> 00:04:20,760 Speaker 1: shields it from this inventory risk that some of the 76 00:04:20,800 --> 00:04:24,320 Speaker 1: other retailers are basing. We really want to thank you 77 00:04:24,360 --> 00:04:26,440 Speaker 1: as always for bringing us the expertise when it comes 78 00:04:26,440 --> 00:04:30,279 Speaker 1: to Amazon. Spencers Sofa thumbs up, Happy weekend. Meanwhile, let's 79 00:04:30,279 --> 00:04:33,320 Speaker 1: talk about the recent changes the navigation that these companies 80 00:04:33,320 --> 00:04:36,880 Speaker 1: having to do around consumer behavior, around sentiment. Because Jason 81 00:04:36,880 --> 00:04:39,400 Speaker 1: Bilson needs with us principle at full run adventures, of course, 82 00:04:39,440 --> 00:04:42,080 Speaker 1: a lot of your portfolio very much around the consumer. 83 00:04:42,160 --> 00:04:44,680 Speaker 1: You of course in one of us a company that's 84 00:04:44,720 --> 00:04:48,760 Speaker 1: all about consumer engagement and sentiment, and I'm interested, Jason. 85 00:04:49,640 --> 00:04:51,599 Speaker 1: There was a particular note coming from Wells Fargo the 86 00:04:51,600 --> 00:04:53,920 Speaker 1: court Everyone's I know it caught yours too, saying basically, 87 00:04:53,920 --> 00:04:55,799 Speaker 1: if we're in a recession alone, was told the consumer, 88 00:04:56,160 --> 00:04:58,440 Speaker 1: do you think that the consumer is resilient in this 89 00:04:58,520 --> 00:05:00,760 Speaker 1: current environment? Thanks for having me, It's a pleasure to 90 00:05:00,760 --> 00:05:05,240 Speaker 1: be on the program. Absolutely, We a foreignner, you know, 91 00:05:05,360 --> 00:05:08,919 Speaker 1: really believe in the resiliency of people. We hope people 92 00:05:08,920 --> 00:05:11,240 Speaker 1: at the center of everything we do, and we're optimistic 93 00:05:11,360 --> 00:05:15,640 Speaker 1: about the future. We saw consumers be incredibly resalment, resilient 94 00:05:15,680 --> 00:05:18,800 Speaker 1: and adaptable during the pandemic, and we believe that that 95 00:05:18,839 --> 00:05:21,120 Speaker 1: will that will hold up, you know, through this economic 96 00:05:21,160 --> 00:05:23,320 Speaker 1: backdrop and in the long run as we think about 97 00:05:23,320 --> 00:05:27,920 Speaker 1: the next decade ahead. Why you see consumers um spend 98 00:05:28,000 --> 00:05:31,400 Speaker 1: levels are high, you know, the sentiment, on the other hand, 99 00:05:31,680 --> 00:05:34,840 Speaker 1: is low. They're really taking in what's happening right now, 100 00:05:34,880 --> 00:05:38,440 Speaker 1: and they're adapting and they're taking precautionary steps. So we're 101 00:05:38,480 --> 00:05:43,960 Speaker 1: hearing about you know, of consumers are, excuse me, are 102 00:05:43,960 --> 00:05:50,640 Speaker 1: creating a budget. Of consumers are creating a a a 103 00:05:51,240 --> 00:05:55,560 Speaker 1: savings account for an emergency fund. They're beginning to make changes, 104 00:05:55,920 --> 00:05:59,880 Speaker 1: certainly for lower income consumers. We saw this with Walmart 105 00:06:00,000 --> 00:06:03,800 Speaker 1: coming out this week and lowering their profit target when 106 00:06:03,880 --> 00:06:09,080 Speaker 1: consumers are shifting dollars from from discretionary categories like apparel 107 00:06:09,520 --> 00:06:15,560 Speaker 1: to categories that are more necessities like food. So consumers adapt. 108 00:06:15,839 --> 00:06:19,880 Speaker 1: That's their resiliency, right. They may face tough times economically, 109 00:06:20,000 --> 00:06:22,960 Speaker 1: personally or at a macro level, but they adapt, and 110 00:06:23,320 --> 00:06:25,719 Speaker 1: that where we see the resiliency coming in just and 111 00:06:25,800 --> 00:06:28,640 Speaker 1: also many of talked like there are different types of 112 00:06:28,640 --> 00:06:31,160 Speaker 1: consumers out there. There are the consumers that at the 113 00:06:31,200 --> 00:06:35,159 Speaker 1: moment are facing, you know, a balancing act. They cannot win. 114 00:06:35,400 --> 00:06:38,839 Speaker 1: Groceries costs more, gas costs more, they are going to 115 00:06:38,880 --> 00:06:41,560 Speaker 1: have to contail their purchases. But then there's a more 116 00:06:41,640 --> 00:06:46,240 Speaker 1: luxury and purchaser who is able, despite perhaps their four 117 00:06:46,279 --> 00:06:48,440 Speaker 1: oh one k falling off a cliff and despite some 118 00:06:48,480 --> 00:06:51,760 Speaker 1: of their stock prices having been damaged, are still willing 119 00:06:51,800 --> 00:06:54,560 Speaker 1: with the pent up demand to be traveling. And therefore 120 00:06:54,640 --> 00:06:57,440 Speaker 1: your portfolio company away comes into my mind's eye, all 121 00:06:57,640 --> 00:06:59,800 Speaker 1: still willing to be buying an Apple iPhone or an 122 00:06:59,800 --> 00:07:02,520 Speaker 1: a ring, which perhaps costs a little bit more. Are 123 00:07:02,520 --> 00:07:06,880 Speaker 1: you thinking that this consumer is bifurcated. Absolutely, I think 124 00:07:06,880 --> 00:07:09,560 Speaker 1: that that's true right now. I mean, I hope we'd 125 00:07:09,560 --> 00:07:12,680 Speaker 1: certainly have our eye towards opportunities that are that have 126 00:07:12,880 --> 00:07:17,280 Speaker 1: the lower income consumer in mind and increasing access increasing 127 00:07:17,320 --> 00:07:19,560 Speaker 1: costs for them. But I do think that we are 128 00:07:19,680 --> 00:07:22,320 Speaker 1: experienced that. I mean, the reality is that this is 129 00:07:22,360 --> 00:07:26,200 Speaker 1: a complex and dynamic time for consumers. As we mentioned before, 130 00:07:26,280 --> 00:07:29,400 Speaker 1: spend is remaining high, sentiment is low. You know, on 131 00:07:29,480 --> 00:07:31,240 Speaker 1: the one hand, consumers want to get out there and 132 00:07:31,280 --> 00:07:33,360 Speaker 1: live their lives coming out of the pandemic. They want 133 00:07:33,360 --> 00:07:36,400 Speaker 1: to eat out, they want to travel. Uh. You know, 134 00:07:36,480 --> 00:07:38,400 Speaker 1: on the other hand, they have inflation steering them in 135 00:07:38,400 --> 00:07:40,960 Speaker 1: the face and their dollars aren't going as far as 136 00:07:40,960 --> 00:07:45,120 Speaker 1: they used to. Yeah, I've heard much view that actually 137 00:07:45,920 --> 00:07:48,480 Speaker 1: this summer, they'll do it. This summer that like, I 138 00:07:48,520 --> 00:07:51,040 Speaker 1: am just caution to the wind. I'm getting on that flight. 139 00:07:51,120 --> 00:07:53,960 Speaker 1: It costs me a lot. But people are already buying. 140 00:07:54,400 --> 00:07:57,000 Speaker 1: For example, Walmart said, look, we think that the shopping 141 00:07:57,040 --> 00:08:00,440 Speaker 1: period for the September returned to school is actually be good. 142 00:08:00,640 --> 00:08:03,600 Speaker 1: But my warriors, I'm the parent. I'm looking at Amazon 143 00:08:03,600 --> 00:08:05,800 Speaker 1: Prime Day and buying my kids their lunch boxes because 144 00:08:05,840 --> 00:08:08,120 Speaker 1: I don't want them to get more expensive. Are people 145 00:08:08,280 --> 00:08:11,400 Speaker 1: buying stalking up now and then perhaps into the winter 146 00:08:11,480 --> 00:08:13,760 Speaker 1: and in the fall, that's when we start to pull back. 147 00:08:13,920 --> 00:08:16,680 Speaker 1: I think that there's a possibility of that. You know, 148 00:08:16,720 --> 00:08:19,520 Speaker 1: at this moment, we're seeing a shift and spend from 149 00:08:19,520 --> 00:08:23,440 Speaker 1: from durable goods, uh, these one time replacement purchases that 150 00:08:23,520 --> 00:08:26,880 Speaker 1: people made during the pandemic, and they're not putting dollars 151 00:08:26,920 --> 00:08:29,960 Speaker 1: towards that anymore. They're thinking about things like back to school, 152 00:08:30,000 --> 00:08:32,000 Speaker 1: like travel, some of the services that they didn't get 153 00:08:32,080 --> 00:08:34,720 Speaker 1: to spend on in the last couple of years, you know, 154 00:08:35,000 --> 00:08:37,200 Speaker 1: with that in mind very much so though, I do 155 00:08:37,320 --> 00:08:42,520 Speaker 1: believe and see that that consumers, consumers are taking precautionary 156 00:08:42,559 --> 00:08:45,640 Speaker 1: steps and they will start to fall back. For the middle, 157 00:08:45,880 --> 00:08:49,120 Speaker 1: middle income and upper income, we haven't seen that effect yet. 158 00:08:49,160 --> 00:08:51,680 Speaker 1: For the lower income, we have seen that, and to 159 00:08:51,760 --> 00:08:53,480 Speaker 1: your point, you know, in the back half of this year, 160 00:08:53,559 --> 00:08:55,760 Speaker 1: that's something that we have our eye on for sure, 161 00:08:56,280 --> 00:08:58,480 Speaker 1: and we're looking at your portfolio at the moment, and 162 00:08:58,600 --> 00:09:00,320 Speaker 1: chime is one that comes to mind. And course you 163 00:09:00,360 --> 00:09:03,360 Speaker 1: were talking about how the consumers wanting to say you 164 00:09:03,440 --> 00:09:05,960 Speaker 1: seeing a change in the way in which they're wanting 165 00:09:06,040 --> 00:09:10,679 Speaker 1: to have savings for emergency rainy day funds. What about 166 00:09:10,760 --> 00:09:14,040 Speaker 1: just a desire to be in the market, a retail investor, 167 00:09:14,080 --> 00:09:16,600 Speaker 1: one that wants to be seeing and building wealth. How 168 00:09:16,600 --> 00:09:18,920 Speaker 1: are you thinking about that from a fintech perspective as well. 169 00:09:20,120 --> 00:09:22,040 Speaker 1: There was a lot of energy around that, of course 170 00:09:22,080 --> 00:09:23,840 Speaker 1: over the last couple of years. You know, I think 171 00:09:23,880 --> 00:09:27,080 Speaker 1: the reality has set in. There's plenty of individuals that 172 00:09:27,120 --> 00:09:30,840 Speaker 1: got burned that we're tracing, you know, chasing Uh you 173 00:09:30,880 --> 00:09:33,640 Speaker 1: know what, what what I see as as a free 174 00:09:33,720 --> 00:09:35,560 Speaker 1: lunch and that just isn't a free lunch, And so 175 00:09:35,600 --> 00:09:39,240 Speaker 1: the realities are setting it. I'm hopeful that that consumers 176 00:09:39,240 --> 00:09:42,160 Speaker 1: will want to continue to participate as retail investors. I 177 00:09:42,160 --> 00:09:46,200 Speaker 1: think that that is important increasing access to new categories 178 00:09:46,240 --> 00:09:49,960 Speaker 1: of investments. This is this is critical for for broad 179 00:09:50,080 --> 00:09:54,720 Speaker 1: wealth creation. You know that being said, uh, chasing the trends, 180 00:09:55,520 --> 00:09:58,560 Speaker 1: people are feeling the pain of that right now, and 181 00:09:58,600 --> 00:10:00,880 Speaker 1: I think that will probably color in shape how they 182 00:10:00,920 --> 00:10:05,240 Speaker 1: invest going forward. Jason, it is always fascinating to have 183 00:10:05,280 --> 00:10:07,640 Speaker 1: someone who is so early in one success story like 184 00:10:07,679 --> 00:10:10,640 Speaker 1: Bonomous and then gone on to bm VC and thinking 185 00:10:10,679 --> 00:10:12,880 Speaker 1: about these sorts of consumer facing companies. We thank you 186 00:10:12,920 --> 00:10:25,520 Speaker 1: for runadventurous principle of Jason Bolstein. There really great thoughtful answers. Now, 187 00:10:25,559 --> 00:10:26,880 Speaker 1: of course, this week we have the big news of 188 00:10:26,880 --> 00:10:28,960 Speaker 1: the House and the Senate have passed the Chips Act. 189 00:10:29,040 --> 00:10:32,000 Speaker 1: The bill goes to President Biden's desk next to get 190 00:10:32,040 --> 00:10:36,000 Speaker 1: signed into law. Now, meanwhile, US itself as tightening restrictions 191 00:10:36,040 --> 00:10:38,920 Speaker 1: on China's access to chip making gear according to two 192 00:10:38,920 --> 00:10:42,520 Speaker 1: major equipment suppliers, which further under schools basically Washington's accelerating 193 00:10:42,520 --> 00:10:46,200 Speaker 1: efforts to we'll win out versus Beijing's economic ambitions. Let's 194 00:10:46,200 --> 00:10:49,360 Speaker 1: bring in Bloomberg's executive editor for Asia Technology, who happens 195 00:10:49,360 --> 00:10:51,920 Speaker 1: to be in the US, Peter Alstrom. Thank you so 196 00:10:52,000 --> 00:10:54,720 Speaker 1: much for being with us. And we have seen already 197 00:10:55,080 --> 00:10:59,239 Speaker 1: there were reports that America was leaning on European equipment 198 00:10:59,280 --> 00:11:02,160 Speaker 1: makers to stop setting over to Beijing into China and 199 00:11:02,200 --> 00:11:05,079 Speaker 1: now leaning on US manufacturers. Talk to us about the 200 00:11:05,120 --> 00:11:08,360 Speaker 1: latest news. We know, uh, that's right, Yeah, we had 201 00:11:08,440 --> 00:11:12,320 Speaker 1: two CEOs of chip equipment makers who came out this 202 00:11:12,360 --> 00:11:15,600 Speaker 1: week and talked about new restrictions, tighter restrictions on their 203 00:11:15,640 --> 00:11:18,560 Speaker 1: ability to export gear into China. And this is part 204 00:11:18,559 --> 00:11:22,079 Speaker 1: of, of of course, the ongoing tensions between the U S 205 00:11:22,120 --> 00:11:26,520 Speaker 1: and China. The Biden administration has been following on these 206 00:11:26,559 --> 00:11:29,319 Speaker 1: plans to try to restrict China's ability to get the 207 00:11:29,520 --> 00:11:31,600 Speaker 1: equipment that they need to be able to make the 208 00:11:31,600 --> 00:11:34,440 Speaker 1: most advanced chips. So what these two CEOs have talked 209 00:11:34,440 --> 00:11:36,720 Speaker 1: about is that now they're widening the scope of that. 210 00:11:36,800 --> 00:11:39,800 Speaker 1: In the past, the hurdle was sort of ten nanometers, 211 00:11:39,880 --> 00:11:42,120 Speaker 1: which is really the most advanced chips, and now they're 212 00:11:42,160 --> 00:11:45,480 Speaker 1: expanding it to fourteen nimes um. And so the chip 213 00:11:45,520 --> 00:11:48,839 Speaker 1: makers are now pulling back and they're disclosing to their 214 00:11:48,840 --> 00:11:51,680 Speaker 1: investors that they have these tighter restrictions. And this is 215 00:11:51,720 --> 00:11:54,600 Speaker 1: part of this broader clash that the U S and 216 00:11:54,679 --> 00:11:57,520 Speaker 1: China are going through right now, where the US is 217 00:11:57,559 --> 00:11:59,800 Speaker 1: trying to hold back China as it tries to build 218 00:12:00,040 --> 00:12:03,000 Speaker 1: it's chip making expertise in particular, but more broadly the 219 00:12:03,040 --> 00:12:08,559 Speaker 1: ability to build its technology sector. China's response from your perspective, 220 00:12:08,600 --> 00:12:12,280 Speaker 1: Peter Well, they've pushed back. They think that the US 221 00:12:12,880 --> 00:12:16,840 Speaker 1: is unfairly trying to stop their rise in the technology area, 222 00:12:17,080 --> 00:12:19,760 Speaker 1: that they want to be able to build these capabilities 223 00:12:19,800 --> 00:12:23,000 Speaker 1: within the country. They're investing billions of billions of dollars 224 00:12:23,120 --> 00:12:26,600 Speaker 1: into companies, into venture capital funds to be able to 225 00:12:27,440 --> 00:12:30,640 Speaker 1: um invest in semiconductors in particular because that's sort of 226 00:12:30,640 --> 00:12:33,240 Speaker 1: the foundation of the tech industry, but also areas like 227 00:12:33,960 --> 00:12:40,120 Speaker 1: artificial intelligence and robotics, autonomous driving, etcetera. Also, of course, 228 00:12:40,360 --> 00:12:43,160 Speaker 1: the animosity, shall we call it that between China and 229 00:12:43,240 --> 00:12:45,640 Speaker 1: US on the tech level is also spread into the 230 00:12:45,679 --> 00:12:48,440 Speaker 1: world of social media, and time and time again we've heard, 231 00:12:48,480 --> 00:12:51,160 Speaker 1: perhaps the likes of Meta say, you know, the reason 232 00:12:51,200 --> 00:12:53,160 Speaker 1: we need to keep on building and scaling is because 233 00:12:53,280 --> 00:12:56,600 Speaker 1: otherwise China will come in, and they mean TikTok. TikTok's 234 00:12:56,600 --> 00:12:59,920 Speaker 1: already got a real foothold in the US, and then 235 00:13:00,080 --> 00:13:02,640 Speaker 1: might be reasons for concern. Can you elaborate a little 236 00:13:02,679 --> 00:13:07,000 Speaker 1: bit on what might be a so called propaganda uh 237 00:13:07,400 --> 00:13:12,200 Speaker 1: developments in that space. Yeah. TikTok, of course, is one 238 00:13:12,240 --> 00:13:14,840 Speaker 1: of the apps that was developed by this Chinese company, 239 00:13:14,880 --> 00:13:16,439 Speaker 1: Bite Dance. They have a whole bunch of them, but 240 00:13:16,520 --> 00:13:19,080 Speaker 1: TikTok is the one that's really taken off in the 241 00:13:19,160 --> 00:13:22,200 Speaker 1: U S. It's very popular with teenagers in particular, and 242 00:13:22,320 --> 00:13:26,640 Speaker 1: it's um first came under scrutiny under the Trump administration, 243 00:13:26,640 --> 00:13:28,720 Speaker 1: which planed on banning the app for a while, and 244 00:13:28,760 --> 00:13:31,280 Speaker 1: they were going to force the company Bye Dance to 245 00:13:31,320 --> 00:13:34,719 Speaker 1: sell off ownership of TikTok. It's become very popular in 246 00:13:34,760 --> 00:13:38,360 Speaker 1: their concerns about national security. So the latest story that 247 00:13:38,400 --> 00:13:42,760 Speaker 1: you're referring to is that we found information that the 248 00:13:42,840 --> 00:13:45,640 Speaker 1: Chinese government had gone to TikTok and had tried to 249 00:13:45,679 --> 00:13:47,960 Speaker 1: set up a channel where they could put on their 250 00:13:48,000 --> 00:13:49,880 Speaker 1: point of view, their kind of nationalist a point of 251 00:13:49,960 --> 00:13:53,679 Speaker 1: view and advocate for the Chinese point of view in 252 00:13:53,720 --> 00:13:56,360 Speaker 1: the world without disclosing where it was actually coming from. 253 00:13:56,640 --> 00:13:58,800 Speaker 1: TikTok in this case pushed back and said that they 254 00:13:58,800 --> 00:14:01,680 Speaker 1: would not comply with those regulations. They don't want to 255 00:14:01,720 --> 00:14:04,400 Speaker 1: be viewed as a propaganda arm of the Chinese government, 256 00:14:04,800 --> 00:14:06,920 Speaker 1: they saidainly don't, particularly when they do want to keep 257 00:14:06,920 --> 00:14:09,640 Speaker 1: on expanding in the Western world. And to that point, Peter, 258 00:14:09,760 --> 00:14:11,960 Speaker 1: there has been some interesting reporting from putting back just 259 00:14:12,000 --> 00:14:14,600 Speaker 1: about their foothold in gen Z and and the way 260 00:14:14,600 --> 00:14:18,320 Speaker 1: in which gen Z use TikTok. Right, well, TikTok is 261 00:14:18,400 --> 00:14:21,120 Speaker 1: just exploding in popularity, and it has been for quite 262 00:14:21,160 --> 00:14:23,640 Speaker 1: a few years. What's really changing now are a couple 263 00:14:23,680 --> 00:14:26,480 Speaker 1: of things. One, TikTok is beginning to cash in on 264 00:14:26,560 --> 00:14:29,840 Speaker 1: that popularity. They figured out how to use advertising to 265 00:14:29,920 --> 00:14:32,560 Speaker 1: be able to bring in revenues, and we've talked about 266 00:14:32,560 --> 00:14:34,680 Speaker 1: how their revenues are surging. They're likely to go to 267 00:14:34,760 --> 00:14:37,520 Speaker 1: about twelve billion dollars this year. As part of that, 268 00:14:37,760 --> 00:14:41,280 Speaker 1: they're moving beyond their their old kind of platform. They 269 00:14:41,320 --> 00:14:43,800 Speaker 1: used to be viewed as mostly entertainment. They were short 270 00:14:43,880 --> 00:14:46,360 Speaker 1: videos that people would watch. If you had to search 271 00:14:46,400 --> 00:14:49,440 Speaker 1: for something, you would typically typically go to Google, of course, 272 00:14:49,760 --> 00:14:52,760 Speaker 1: But now what you're seeing is that TikTok is actually 273 00:14:52,760 --> 00:14:54,880 Speaker 1: being used to find things in the way that you 274 00:14:55,000 --> 00:14:58,239 Speaker 1: used to look on search, especially with the younger consumers, 275 00:14:58,600 --> 00:15:03,000 Speaker 1: and getting that news as well. Executive editor for Asia 276 00:15:03,040 --> 00:15:06,400 Speaker 1: Technology Peter Elstrom keeping it on linear TV for US 277 00:15:06,440 --> 00:15:09,320 Speaker 1: for the time being, but meanwhile coming up shares Intel 278 00:15:09,360 --> 00:15:12,240 Speaker 1: plunge today and the CEO told Bloomberg that it's stark 279 00:15:12,320 --> 00:15:15,520 Speaker 1: deserves to be down. Why now mere corporal moment. Will 280 00:15:15,560 --> 00:15:37,880 Speaker 1: share more in that interview. This is Bloomberg. Chip maker 281 00:15:38,120 --> 00:15:41,800 Speaker 1: Intel has well slashed his sales and profit forecasts for 282 00:15:41,840 --> 00:15:43,680 Speaker 1: the rest of the year. We heard that after the 283 00:15:43,680 --> 00:15:46,560 Speaker 1: bell yesterday, and of course CEO pat Girl Singer consider 284 00:15:46,640 --> 00:15:49,479 Speaker 1: an Intel needs more time to make its products competitive. 285 00:15:49,840 --> 00:15:51,840 Speaker 1: At the same time, while he, as should investors looked 286 00:15:51,840 --> 00:15:54,800 Speaker 1: at the current quarter will be the low point. Here's 287 00:15:54,800 --> 00:15:57,600 Speaker 1: some of his conversation with our colleagues and Edwards and 288 00:15:57,640 --> 00:16:01,520 Speaker 1: alex Steel. We expect two and twenty three to be challenging, 289 00:16:02,000 --> 00:16:06,640 Speaker 1: and we had great winds yesterday that we announced with Amazon, 290 00:16:06,800 --> 00:16:11,440 Speaker 1: you know, long term multigeneration partnership with Meta and uh 291 00:16:11,560 --> 00:16:13,280 Speaker 1: you know, these are areas where we're going to go 292 00:16:13,320 --> 00:16:17,440 Speaker 1: fight every customer, every socket, every workload. But we expect 293 00:16:17,480 --> 00:16:20,280 Speaker 1: that two and twenty three are challenging years until we 294 00:16:20,280 --> 00:16:23,640 Speaker 1: get the products that are just unquestionably the best in 295 00:16:23,680 --> 00:16:26,600 Speaker 1: the industry. Macrowhead winds are they something that you are 296 00:16:26,680 --> 00:16:30,360 Speaker 1: factory into your expectations for the business, the extent to 297 00:16:30,400 --> 00:16:32,320 Speaker 1: which you want to invest in the business. You know, 298 00:16:32,360 --> 00:16:36,320 Speaker 1: the enterprise market continues to be strong, it's really focused 299 00:16:36,320 --> 00:16:38,760 Speaker 1: the weakness and the consumer market has been where we've 300 00:16:38,760 --> 00:16:41,920 Speaker 1: seen it quite acutely in this period of time. But 301 00:16:42,240 --> 00:16:44,760 Speaker 1: like semiconductors, you know, it's a cyclic industry and it 302 00:16:44,800 --> 00:16:48,160 Speaker 1: always has been, and we're going to embrace this and 303 00:16:48,240 --> 00:16:51,520 Speaker 1: make the company stronger, better, and you know, some austerity 304 00:16:51,720 --> 00:16:55,240 Speaker 1: helps to drive my transformation agenda more rapidly into the 305 00:16:55,280 --> 00:16:57,840 Speaker 1: company as well, and thus we feel like this is 306 00:16:57,880 --> 00:17:00,840 Speaker 1: the bottom. That's what we clearly communicated in the earnings call, 307 00:17:01,160 --> 00:17:03,760 Speaker 1: and you know, we're off to the races to do 308 00:17:03,880 --> 00:17:07,280 Speaker 1: better for ourselves and for our shareholders into the future. 309 00:17:07,480 --> 00:17:10,040 Speaker 1: You guys also talked about UM, your new guidance for 310 00:17:10,080 --> 00:17:13,679 Speaker 1: full year gross margins coming in around A lot of 311 00:17:13,720 --> 00:17:17,000 Speaker 1: analysts were really skeptical of that number UM after the 312 00:17:17,040 --> 00:17:19,720 Speaker 1: call that it's just too hopeful considering all the pricing 313 00:17:19,720 --> 00:17:24,000 Speaker 1: pressures that everyone's under on chips and increase process nodes costs, 314 00:17:24,080 --> 00:17:27,240 Speaker 1: et cetera. Um, what's the probability you're gonna have to 315 00:17:27,240 --> 00:17:31,840 Speaker 1: revise that lower? Well, we clearly set out a framework 316 00:17:31,920 --> 00:17:34,679 Speaker 1: of our financials that we are confident in that we 317 00:17:34,800 --> 00:17:38,240 Speaker 1: can meet and beat, so our confidence is high. We 318 00:17:38,320 --> 00:17:42,040 Speaker 1: also had some one time things in the quarter, like 319 00:17:42,400 --> 00:17:46,199 Speaker 1: inventory research that will naturally reverse. You know, some of 320 00:17:46,240 --> 00:17:49,720 Speaker 1: this was the dramatic swings that we saw in the quarter. 321 00:17:49,920 --> 00:17:52,359 Speaker 1: You know, we weren't able to adjust our fixed costs 322 00:17:52,359 --> 00:17:54,399 Speaker 1: that quickly, so we'll have more time to do that 323 00:17:54,520 --> 00:17:56,960 Speaker 1: in the second half of the year. And with new 324 00:17:57,000 --> 00:17:59,719 Speaker 1: products ramping, you know, they're very negative and as they 325 00:17:59,720 --> 00:18:02,760 Speaker 1: start to ramp, you know, we get better margin structure. 326 00:18:02,800 --> 00:18:05,640 Speaker 1: So overall, we're confident in the guide that we gave 327 00:18:05,720 --> 00:18:07,879 Speaker 1: for the year, and we have a natural strength of 328 00:18:07,880 --> 00:18:10,760 Speaker 1: shipping more products in this in the second half of 329 00:18:10,760 --> 00:18:14,280 Speaker 1: the year. Normal yearly cyclicality. Intel stock is down thirty 330 00:18:14,960 --> 00:18:17,439 Speaker 1: this year. It's down ten percent today. The market is 331 00:18:17,480 --> 00:18:21,040 Speaker 1: just not buying what you're selling. What is everyone getting 332 00:18:21,080 --> 00:18:23,919 Speaker 1: so wrong? Then I think we deserve to be down today. 333 00:18:24,200 --> 00:18:26,879 Speaker 1: And with the earnings that we report, the guidance that 334 00:18:26,920 --> 00:18:28,880 Speaker 1: we gave, you know, it's a bit of a reset 335 00:18:29,280 --> 00:18:33,520 Speaker 1: and uh, I think we've disappointed ourselves and our shareholders 336 00:18:33,800 --> 00:18:36,600 Speaker 1: in that respect. At the same time, we've laid out 337 00:18:36,640 --> 00:18:39,639 Speaker 1: a multi year path to the future and we're confident 338 00:18:39,720 --> 00:18:43,399 Speaker 1: that that will be realized and we're getting more and 339 00:18:43,480 --> 00:18:46,920 Speaker 1: more proof points along the way, such as our technology 340 00:18:46,960 --> 00:18:49,800 Speaker 1: and process. You know that area is one that everybody 341 00:18:49,800 --> 00:18:52,640 Speaker 1: has set is most critical. And Intel seven, Intel four 342 00:18:52,840 --> 00:18:56,719 Speaker 1: got very positive reviews, were ahead of schedule, and Intel 343 00:18:56,800 --> 00:19:01,600 Speaker 1: three and eighteen A. And if I have leadership, process 344 00:19:01,680 --> 00:19:04,840 Speaker 1: and capacity, you know Intel is going to do fine 345 00:19:04,920 --> 00:19:07,879 Speaker 1: for the future. We had neither. We're getting back both 346 00:19:07,920 --> 00:19:11,120 Speaker 1: of those as we go forward. So we're working on it. 347 00:19:11,280 --> 00:19:13,760 Speaker 1: But clearly, this is a journey. It is a journey. 348 00:19:13,800 --> 00:19:16,400 Speaker 1: What difference will the Chips Act make to your journey? 349 00:19:16,480 --> 00:19:19,119 Speaker 1: You know, the Chips Act is a seminal act for 350 00:19:19,359 --> 00:19:23,960 Speaker 1: this may be the most significant industrial policy legislation that's 351 00:19:23,960 --> 00:19:26,960 Speaker 1: been put in place since World War Two in the US. 352 00:19:27,000 --> 00:19:29,639 Speaker 1: This is huge. Clearly, we said, you know, we are 353 00:19:29,640 --> 00:19:32,439 Speaker 1: expecting and to be a beneficiary of that both in 354 00:19:32,480 --> 00:19:36,720 Speaker 1: the near term right with the manufacturing offsets, and we 355 00:19:36,760 --> 00:19:39,720 Speaker 1: have an aggressive capital build for that. You know, the 356 00:19:39,760 --> 00:19:43,600 Speaker 1: tax benefits will be helpful, but long term, the research 357 00:19:43,720 --> 00:19:47,240 Speaker 1: portions of the bill are huge for long term leadership 358 00:19:47,480 --> 00:19:49,920 Speaker 1: as well. This is good for the industry, it's good 359 00:19:49,960 --> 00:19:53,199 Speaker 1: for the United States, and Intel will be a beneficiary there. 360 00:19:53,359 --> 00:19:55,159 Speaker 1: And I'm proud to have played a part in getting 361 00:19:55,160 --> 00:19:59,080 Speaker 1: it across the line. In tels, the pat gaussing on 362 00:19:59,119 --> 00:20:01,960 Speaker 1: Blue Bay Team. Meanwhile, coming up, it is a date 363 00:20:02,440 --> 00:20:05,600 Speaker 1: a judge decides when Musk Twitter trial when it's going 364 00:20:05,640 --> 00:20:18,480 Speaker 1: to begin. Boy still until October. So Twitter's lawsuit against 365 00:20:18,520 --> 00:20:21,640 Speaker 1: billionaire Elon Musk over they canceled four billion dollar buy 366 00:20:21,680 --> 00:20:24,119 Speaker 1: out of the social media platform set for a five 367 00:20:24,200 --> 00:20:27,720 Speaker 1: day trial starting October seventeenth in Delaware. Twitch As lawyers 368 00:20:27,760 --> 00:20:30,280 Speaker 1: say they'll need only four days to prove Muskar is 369 00:20:30,520 --> 00:20:34,240 Speaker 1: misusing questions about spam and robot accounts as an excuse 370 00:20:34,359 --> 00:20:37,760 Speaker 1: to walk away from the deal. Musk's arguing Twitter's handover 371 00:20:37,800 --> 00:20:40,480 Speaker 1: of the so called bots material hasn't been robust and 372 00:20:40,520 --> 00:20:43,679 Speaker 1: the company's mishandling of that data provides a legitimate basis 373 00:20:43,680 --> 00:20:47,280 Speaker 1: for backing out. Kurt Wagner joins us, now, too well, 374 00:20:47,440 --> 00:20:49,680 Speaker 1: explain why we have to wait all the way until October. 375 00:20:49,760 --> 00:20:51,840 Speaker 1: But meanwhile we get the drip feed of news and 376 00:20:51,840 --> 00:20:55,720 Speaker 1: we understand Musk has indeed filed counterclaims in the lawsuit 377 00:20:55,840 --> 00:20:57,560 Speaker 1: over the buy out, but we're not gonna be able 378 00:20:57,560 --> 00:21:01,440 Speaker 1: to read them. Yeah, exactly. I believe they're not public 379 00:21:01,520 --> 00:21:04,240 Speaker 1: right now, so we can speculate as to what they 380 00:21:04,320 --> 00:21:06,879 Speaker 1: might say. And my guess is he's gonna say, hey, listen, 381 00:21:06,880 --> 00:21:09,240 Speaker 1: the thing is a real issue, and you know, see 382 00:21:09,240 --> 00:21:11,280 Speaker 1: you in October. We can talk about it. But as 383 00:21:11,320 --> 00:21:13,200 Speaker 1: you mentioned, you know, this trial, we knew it was 384 00:21:13,200 --> 00:21:15,280 Speaker 1: going to be in October. The two sides were kind 385 00:21:15,280 --> 00:21:17,280 Speaker 1: of arguing a little bit over when it was going 386 00:21:17,320 --> 00:21:19,040 Speaker 1: to be. Twitter had wanted it to actually be a 387 00:21:19,080 --> 00:21:21,480 Speaker 1: week earlier than what it scheduled, which is right now 388 00:21:21,480 --> 00:21:25,080 Speaker 1: for Monday, October se um. So clearly they were able to, 389 00:21:25,160 --> 00:21:27,040 Speaker 1: you know, find a date that works for everybody, and 390 00:21:27,480 --> 00:21:31,919 Speaker 1: I guess we'll see you there five days, four days, 391 00:21:32,119 --> 00:21:34,440 Speaker 1: all of it. I mean, Delaware, a court in Delaware 392 00:21:34,600 --> 00:21:37,560 Speaker 1: is known for speed, right, But is this particularly fast 393 00:21:37,640 --> 00:21:40,320 Speaker 1: or give it a context here? Yeah, it does. It 394 00:21:40,359 --> 00:21:42,400 Speaker 1: feels a little fast to me. But at the same time, 395 00:21:42,440 --> 00:21:45,479 Speaker 1: I mean, so much this this, you know, feels like 396 00:21:45,760 --> 00:21:47,800 Speaker 1: a sort of simple case in the sense that both 397 00:21:47,800 --> 00:21:51,520 Speaker 1: sides have already signed this merger agreement, right, we know, 398 00:21:52,280 --> 00:21:54,720 Speaker 1: um the issues at hand, right, it's this, it's this 399 00:21:54,840 --> 00:21:58,600 Speaker 1: body issue, and so um to me, it's like everything 400 00:21:58,720 --> 00:22:01,280 Speaker 1: is already kind of laid out. And so as you 401 00:22:01,320 --> 00:22:02,919 Speaker 1: pointed out, I think Twitter thought that they could do 402 00:22:02,920 --> 00:22:05,000 Speaker 1: this in even four days. The trial is supposed to 403 00:22:05,080 --> 00:22:07,600 Speaker 1: be five, so clearly they think they can make their 404 00:22:07,600 --> 00:22:10,720 Speaker 1: case quite quickly, and um, you know, we'll we'll find out, 405 00:22:10,800 --> 00:22:12,320 Speaker 1: but it sounds like it's going to be that five 406 00:22:12,400 --> 00:22:15,399 Speaker 1: day week, uh, and hopefully have a verdict or some 407 00:22:15,480 --> 00:22:18,320 Speaker 1: kind of solution by the end of the week. October one. 408 00:22:18,920 --> 00:22:22,560 Speaker 1: For lawyers, three months is pretty short for our short 409 00:22:22,680 --> 00:22:25,959 Speaker 1: term media mindset. It feels like an eternity. What are 410 00:22:26,000 --> 00:22:29,960 Speaker 1: you expecting next? What do we look out for? Yeah, well, 411 00:22:30,000 --> 00:22:32,719 Speaker 1: behind the scenes, we're going to see both sides, you know, 412 00:22:32,760 --> 00:22:35,159 Speaker 1: doing all the things that you do for a trial. Right. 413 00:22:35,200 --> 00:22:38,520 Speaker 1: They're going to be requesting documentation and providing documentation to 414 00:22:38,600 --> 00:22:42,160 Speaker 1: one another. They're going to be setting up witnesses, uh, 415 00:22:42,240 --> 00:22:44,520 Speaker 1: you know, all of that stuff. I think in the meantime, 416 00:22:44,840 --> 00:22:47,760 Speaker 1: there is supposed to be a vote from Twitter shareholders 417 00:22:48,119 --> 00:22:53,439 Speaker 1: in September uh to kind of form formulas or formulate sorry, 418 00:22:53,600 --> 00:22:57,439 Speaker 1: the deal, excuse me for create the deal and make 419 00:22:57,480 --> 00:23:00,439 Speaker 1: sure everything is good to go. And um, that's going 420 00:23:00,480 --> 00:23:02,640 Speaker 1: to be in September, And that's a way for them 421 00:23:02,680 --> 00:23:04,600 Speaker 1: to try to show that they're moving forward with this 422 00:23:04,640 --> 00:23:07,440 Speaker 1: whole thing and they're not. You know letting this get derailed. 423 00:23:08,240 --> 00:23:11,439 Speaker 1: It's a Friday. I don't know what my name is anymore, 424 00:23:11,520 --> 00:23:14,439 Speaker 1: let alone how I say formalize or formulate. Ko Wagner, 425 00:23:14,720 --> 00:23:17,560 Speaker 1: thank you so much of being in the studio. Appreciate it. 426 00:23:17,680 --> 00:23:21,840 Speaker 1: They well. Meanwhile, Federal Trade Commissioner Chair that is, Lena 427 00:23:21,920 --> 00:23:24,960 Speaker 1: Kahn is sending a pretty strong warning sign to Silicon 428 00:23:25,040 --> 00:23:27,760 Speaker 1: Valley by trying to block metas pursuit of a VR 429 00:23:27,800 --> 00:23:31,840 Speaker 1: fitness app. Within can't overruled, actually her staf's recommendations to 430 00:23:31,880 --> 00:23:33,840 Speaker 1: allow Meta to buy the company as part of its 431 00:23:33,840 --> 00:23:37,280 Speaker 1: metaverse expansion. Now, that aggressive approach for a pretty minor 432 00:23:37,359 --> 00:23:40,240 Speaker 1: deal seemingly suggest that the FTC is going to play 433 00:23:40,240 --> 00:23:42,159 Speaker 1: hardball with big tech M and A, as if we 434 00:23:42,200 --> 00:23:45,040 Speaker 1: hadn't guessed that already. Plombergs Max Chafkin is here to 435 00:23:45,520 --> 00:23:48,520 Speaker 1: tell us first and foremost, NUNA can't overruling sort of 436 00:23:48,600 --> 00:23:52,000 Speaker 1: advice by her own economists, their own lawyers within the 437 00:23:52,040 --> 00:23:54,399 Speaker 1: FTC to say no, look, we're going to go ahead 438 00:23:54,440 --> 00:23:58,520 Speaker 1: and pursue this case. How big a deal is that, Well, 439 00:23:58,680 --> 00:24:00,640 Speaker 1: it's a big deal in a sense that what we're 440 00:24:00,680 --> 00:24:03,320 Speaker 1: finally seeing is Lena con sort of following through on 441 00:24:03,480 --> 00:24:05,800 Speaker 1: something that I guess a lot of political observers have 442 00:24:05,880 --> 00:24:09,000 Speaker 1: been expecting and that hadn't happened kind of in the 443 00:24:09,000 --> 00:24:11,119 Speaker 1: early days of the Biden administration because you had this 444 00:24:11,200 --> 00:24:14,399 Speaker 1: to too deadlock on the FTC. UH. Now we have 445 00:24:14,600 --> 00:24:17,280 Speaker 1: another Democratic Commissioner, so it's three too, so all of 446 00:24:17,320 --> 00:24:20,639 Speaker 1: a sudden, cases like this can proceed. And the rationale 447 00:24:20,680 --> 00:24:26,160 Speaker 1: here is basically that Facebook had already has dominance of VR, which, 448 00:24:26,200 --> 00:24:28,919 Speaker 1: although it's a nascent platform, you know, is potentially an 449 00:24:28,920 --> 00:24:32,840 Speaker 1: important platform, and in acquiring this smaller company, as you said, 450 00:24:32,840 --> 00:24:34,840 Speaker 1: for not a huge amount of money that you know, 451 00:24:34,920 --> 00:24:37,720 Speaker 1: allows it to to extend its dominance. This is super 452 00:24:37,760 --> 00:24:41,439 Speaker 1: controversial kind of in Silicon Valley because what Facebook is 453 00:24:41,480 --> 00:24:43,800 Speaker 1: doing is something that not only has it been doing 454 00:24:44,200 --> 00:24:47,840 Speaker 1: for basically, you know, the last decade, but the entire 455 00:24:47,880 --> 00:24:49,840 Speaker 1: industry has been doing. Right. It's a totally part of 456 00:24:49,840 --> 00:24:52,840 Speaker 1: the playbook that these small that these big tech giants 457 00:24:53,119 --> 00:24:56,560 Speaker 1: um look to get into new platforms like VR by 458 00:24:56,640 --> 00:25:00,239 Speaker 1: doing uh purchasing, and and the FTC is saying, hey, 459 00:25:00,280 --> 00:25:01,720 Speaker 1: you know, wait a minute, maybe it's not going to 460 00:25:01,760 --> 00:25:04,200 Speaker 1: work anymore. I mean, according to the House, what was 461 00:25:04,240 --> 00:25:07,280 Speaker 1: it metro has made a hundred or so purchases of 462 00:25:07,320 --> 00:25:10,800 Speaker 1: smaller companies, and of course the FDC itself is already 463 00:25:10,800 --> 00:25:13,680 Speaker 1: pursuing a monopolization case when it comes to social media. 464 00:25:13,720 --> 00:25:15,960 Speaker 1: They now saying that, look, you're monopolizing the world of 465 00:25:16,040 --> 00:25:19,280 Speaker 1: virtual reality. But is Meta the main company that's going 466 00:25:19,320 --> 00:25:21,199 Speaker 1: to be at risk here or is this more precedent 467 00:25:21,280 --> 00:25:25,480 Speaker 1: setting for an alphabet or a or an Apple. Well, 468 00:25:25,520 --> 00:25:29,000 Speaker 1: I think it's certainly something that Meta in particular has 469 00:25:29,320 --> 00:25:32,000 Speaker 1: you know, employed extensively. You know, we're seeing separately. What 470 00:25:32,080 --> 00:25:35,320 Speaker 1: makes this case, this lawsuits so interesting is that separately, 471 00:25:35,359 --> 00:25:38,320 Speaker 1: of course, um Mark Zuckerberg is running into real problems, 472 00:25:38,320 --> 00:25:41,359 Speaker 1: problems with growth, problems with you know, privacy, you know 473 00:25:41,400 --> 00:25:43,920 Speaker 1: that the Apple stuff. And we're seeing you know, earnings 474 00:25:43,920 --> 00:25:46,560 Speaker 1: that are disappointing. And the way that Facebook has gotten 475 00:25:46,600 --> 00:25:49,040 Speaker 1: around sorry, Meta has gotten around this, you know, in 476 00:25:49,080 --> 00:25:51,520 Speaker 1: the past, is by buying companies. You know, when there 477 00:25:51,600 --> 00:25:55,080 Speaker 1: was the shift to mobile um some of that innovation 478 00:25:55,160 --> 00:25:58,199 Speaker 1: happened inside of inside a company, inside a company then 479 00:25:58,240 --> 00:26:02,879 Speaker 1: called Facebook. But but what really propelled uh Meta Facebook 480 00:26:02,880 --> 00:26:06,040 Speaker 1: two dominance was the acquisition of Instagram. Of course, that 481 00:26:06,119 --> 00:26:08,840 Speaker 1: was not a huge acquisition, not that much bigger than 482 00:26:08,880 --> 00:26:11,119 Speaker 1: when we're talking about here, and then the acquisition of 483 00:26:11,119 --> 00:26:13,280 Speaker 1: What's App and that is, you know, given it this 484 00:26:13,440 --> 00:26:16,520 Speaker 1: huge dominance of social media. You know, if Facebook had 485 00:26:16,560 --> 00:26:19,120 Speaker 1: its druthers, if Mark Zuckerberg had his brothers right now, 486 00:26:19,280 --> 00:26:21,880 Speaker 1: you know, he'd probably trying to buy TikTok. Of course, 487 00:26:21,880 --> 00:26:24,000 Speaker 1: that's kind of out of the question right now because 488 00:26:24,480 --> 00:26:26,119 Speaker 1: you know that CC is never going to go for that. 489 00:26:26,119 --> 00:26:28,359 Speaker 1: They won't even let him buy this tiny VR company. 490 00:26:29,400 --> 00:26:32,680 Speaker 1: And of course, leading Colm, we knew that how writings 491 00:26:34,280 --> 00:26:38,240 Speaker 1: in Academia was about Amazon and about the world of consolidation. 492 00:26:38,840 --> 00:26:40,640 Speaker 1: It's sort of taking a bit of time, hasn't it 493 00:26:40,720 --> 00:26:45,120 Speaker 1: to finally get this bite rather than the bog? Yeah, 494 00:26:45,200 --> 00:26:47,359 Speaker 1: And as I said, you know, we she has a 495 00:26:47,440 --> 00:26:50,200 Speaker 1: very narrow window and Bloomberg has written about this over 496 00:26:50,200 --> 00:26:52,920 Speaker 1: the past couple of months. But because you you had 497 00:26:52,920 --> 00:26:56,160 Speaker 1: a to two deadlock, she really wasn't able to do anything. 498 00:26:56,680 --> 00:27:01,439 Speaker 1: You get this new um Democratic Commissioner, and that gives 499 00:27:01,440 --> 00:27:03,480 Speaker 1: her a three to edge. It allows a case like 500 00:27:03,520 --> 00:27:06,040 Speaker 1: this to proceed. But the issue is that once we 501 00:27:06,119 --> 00:27:09,679 Speaker 1: hit the mid terms, uh, if Republicans take control of 502 00:27:09,680 --> 00:27:11,879 Speaker 1: Congress or take control of one of the uh, you know, 503 00:27:11,920 --> 00:27:15,879 Speaker 1: houses of Congress. As we expect, then you're gonna see pushback, 504 00:27:15,920 --> 00:27:19,399 Speaker 1: congressional pushback, probably from Republicans, and that's gonna limit her 505 00:27:19,440 --> 00:27:22,240 Speaker 1: ability to get things done. So there's this very narrow 506 00:27:22,280 --> 00:27:26,080 Speaker 1: window politically, and she is of course trying to pursue it. 507 00:27:26,160 --> 00:27:28,600 Speaker 1: So so in that sense, it's not that surprising. Yeah, 508 00:27:28,640 --> 00:27:31,679 Speaker 1: of course the two Republicans voting against this action on 509 00:27:31,720 --> 00:27:35,399 Speaker 1: the FDC. Max, always great to have your expertise with us. 510 00:27:35,440 --> 00:27:39,080 Speaker 1: Thank you for most Max Chafkin. I have a great weekend. Meanwhile, 511 00:27:39,080 --> 00:27:42,400 Speaker 1: coming up, as the world slowly but surely still moves 512 00:27:42,400 --> 00:27:44,360 Speaker 1: towards Web three, as we like to call it, we'll 513 00:27:44,400 --> 00:27:47,320 Speaker 1: talk about the need well maybe own your own digital 514 00:27:47,320 --> 00:27:52,760 Speaker 1: identity in domain names, unstoppable domains. It's just race and funding. 515 00:27:52,760 --> 00:27:56,159 Speaker 1: It's the new unicorn in the Web three space. Tune 516 00:27:56,160 --> 00:27:58,520 Speaker 1: in for the interview with the CEO of the spring Back. 517 00:28:13,680 --> 00:28:16,840 Speaker 1: Time now for our crypto report, and here's some optimism 518 00:28:16,920 --> 00:28:19,600 Speaker 1: to wrap up the week. Bitcoin Etheria, Well, it's two 519 00:28:19,720 --> 00:28:23,760 Speaker 1: largest digital tokens headed towards them best months this amid 520 00:28:23,840 --> 00:28:27,000 Speaker 1: a revival of risk appetite in global markets. That's bringing 521 00:28:27,040 --> 00:28:30,280 Speaker 1: our crypto contributor Shnati Bassett, who, well, we know risk 522 00:28:30,280 --> 00:28:33,160 Speaker 1: assets were well played for the month of July. Absolutely, 523 00:28:33,200 --> 00:28:35,120 Speaker 1: So let's talk about what that means for bitcoin, because 524 00:28:35,160 --> 00:28:37,480 Speaker 1: on a seven day basis, Caroline, you're seeing it up 525 00:28:37,520 --> 00:28:40,280 Speaker 1: more than five percent. It is starting to waiver a 526 00:28:40,280 --> 00:28:43,440 Speaker 1: little bit under twenty four dollars, but it does have 527 00:28:43,480 --> 00:28:45,400 Speaker 1: a nice little rally. And you look at that rally 528 00:28:45,480 --> 00:28:47,000 Speaker 1: right here in the middle of the week, right after 529 00:28:47,040 --> 00:28:49,800 Speaker 1: the Federal Reserve raised interest rates. That was supposed to 530 00:28:49,840 --> 00:28:52,680 Speaker 1: be something that may have muted risk appetite, but it 531 00:28:52,680 --> 00:28:54,880 Speaker 1: certainly did not in the case of bitcoin this week. 532 00:28:55,080 --> 00:28:56,680 Speaker 1: And if you take a look at bitcoin over the 533 00:28:56,720 --> 00:28:58,720 Speaker 1: full year, where does that leave us in terms of 534 00:28:58,760 --> 00:29:01,800 Speaker 1: climbing back up towards where we were before? We have 535 00:29:01,840 --> 00:29:03,760 Speaker 1: a long way to go, because we were closer to 536 00:29:03,760 --> 00:29:05,959 Speaker 1: sixty eight thousand when we looked at it at the 537 00:29:06,160 --> 00:29:08,840 Speaker 1: high over the one year period, we're not even really 538 00:29:08,840 --> 00:29:10,800 Speaker 1: where we were for the average for the full year. 539 00:29:10,840 --> 00:29:13,000 Speaker 1: With the full year average was a little over forty one. 540 00:29:13,760 --> 00:29:17,320 Speaker 1: So that twenty four thousand mark is exciting little jump 541 00:29:17,400 --> 00:29:20,880 Speaker 1: you have here, it still is less than half of 542 00:29:21,080 --> 00:29:23,120 Speaker 1: where you were almost a third of where you were 543 00:29:23,160 --> 00:29:26,880 Speaker 1: at the peak uh in the last year. Let's look 544 00:29:26,920 --> 00:29:29,479 Speaker 1: in etherium as well here, because actually you had an 545 00:29:29,480 --> 00:29:33,200 Speaker 1: even bigger jump this week in ethereum than you had 546 00:29:33,200 --> 00:29:36,240 Speaker 1: in bitcoin. Of course, it is a smaller asset, is 547 00:29:36,240 --> 00:29:39,800 Speaker 1: a smaller asset by it's a market value thirteen point 548 00:29:39,840 --> 00:29:42,520 Speaker 1: five percent jump there. So there's a lot of excitement 549 00:29:42,520 --> 00:29:45,520 Speaker 1: here about ethereum, about the merge that has anticipated in 550 00:29:45,560 --> 00:29:48,240 Speaker 1: the coming months. So the question here is this is 551 00:29:48,280 --> 00:29:51,080 Speaker 1: this a valuation play when you look at ethereum versus bitcoin? 552 00:29:51,200 --> 00:29:54,800 Speaker 1: Is that a fundamental player? People more excited about ethereum future. 553 00:29:55,000 --> 00:29:56,960 Speaker 1: Let's look at a year though you do have that 554 00:29:57,880 --> 00:29:59,800 Speaker 1: percent to client over the year in ethereum as well, 555 00:30:00,400 --> 00:30:05,000 Speaker 1: still a long way to climb back. Context is everything, Jannali, 556 00:30:05,200 --> 00:30:07,040 Speaker 1: thank you, and you're gonna be sticking with us because 557 00:30:07,080 --> 00:30:09,280 Speaker 1: we're going to turn our attention to our next topic, 558 00:30:09,320 --> 00:30:13,680 Speaker 1: digital identities now unstoppable domains, talking evaluations. Web three digital 559 00:30:13,680 --> 00:30:16,560 Speaker 1: identity startup just become the latest crypto start up to 560 00:30:16,600 --> 00:30:19,760 Speaker 1: become a unicorn. Indeed, the crypto winter not actually affecting 561 00:30:19,800 --> 00:30:21,680 Speaker 1: everyone in the same way. In place to say that 562 00:30:21,720 --> 00:30:25,080 Speaker 1: Matthew Gold is with us CEO found a congratulations on 563 00:30:25,120 --> 00:30:29,640 Speaker 1: the fundraise and stand being led by some key vcs 564 00:30:29,640 --> 00:30:33,920 Speaker 1: in the space. Talk to us about what Unstoppable Domains 565 00:30:33,960 --> 00:30:36,160 Speaker 1: is trying to do. Am I going to be buying 566 00:30:36,520 --> 00:30:39,520 Speaker 1: Caroline dot high, dot ether or whatever it is in 567 00:30:39,560 --> 00:30:43,480 Speaker 1: the future and what reason when I needed? Yeah, So 568 00:30:43,640 --> 00:30:45,960 Speaker 1: we're on a mission to use their own identity to 569 00:30:46,360 --> 00:30:49,320 Speaker 1: all three billion Internet users on the planet, and we 570 00:30:49,400 --> 00:30:51,520 Speaker 1: do that by creating n f T s and in 571 00:30:51,560 --> 00:30:54,200 Speaker 1: this case, in f T domains like Caroline do n 572 00:30:54,240 --> 00:30:57,160 Speaker 1: f T and we believe you're going to use that 573 00:30:57,440 --> 00:31:00,440 Speaker 1: not only for retending receiving crypto payments. So if you 574 00:31:00,480 --> 00:31:02,840 Speaker 1: believe in crypto, long term, everyone on the planet's going 575 00:31:02,880 --> 00:31:04,600 Speaker 1: to be sending crypto to each other, So you're definitely 576 00:31:04,640 --> 00:31:07,160 Speaker 1: gonna want to domain name to make that simpler. But 577 00:31:07,240 --> 00:31:09,000 Speaker 1: we also think you're gonna use that to log into 578 00:31:09,040 --> 00:31:11,800 Speaker 1: all your different apps, and people are already doing that 579 00:31:12,040 --> 00:31:15,240 Speaker 1: right now for Web three applications, and we think it's 580 00:31:15,240 --> 00:31:17,040 Speaker 1: going to spread across to the rest of the Internet 581 00:31:17,080 --> 00:31:19,920 Speaker 1: as well. The rest of the Internet. Talk to us 582 00:31:19,960 --> 00:31:22,960 Speaker 1: about how Unstoppable to the Unstoppable Domains is kind of 583 00:31:23,000 --> 00:31:25,480 Speaker 1: creating the next version of the Internet alongside you and 584 00:31:25,520 --> 00:31:27,640 Speaker 1: your rivals. What was the real pitch you had to 585 00:31:27,760 --> 00:31:31,840 Speaker 1: investors to really buy into the future here at a 586 00:31:31,920 --> 00:31:36,360 Speaker 1: time where we're facing so much pressure on the market overall. Yeah, Well, 587 00:31:36,480 --> 00:31:40,120 Speaker 1: people spend or more of their time online now just 588 00:31:40,160 --> 00:31:43,240 Speaker 1: staring at the screen, and less than one percent of 589 00:31:43,240 --> 00:31:45,760 Speaker 1: the things that you own are likely digital assets. And 590 00:31:45,800 --> 00:31:48,560 Speaker 1: we think that over the coming decades that's gonna change. 591 00:31:48,600 --> 00:31:50,680 Speaker 1: So you can see a lot of value being created 592 00:31:51,120 --> 00:31:54,040 Speaker 1: in crypto, trillions of dollars in value here. We think 593 00:31:54,080 --> 00:31:57,120 Speaker 1: that's only going to increase. And uh, you know, you 594 00:31:57,160 --> 00:31:59,920 Speaker 1: see Mark Zuckerberg spending ten billion dollars to build the 595 00:32:00,000 --> 00:32:03,080 Speaker 1: meta person br and that just says to us that 596 00:32:03,200 --> 00:32:05,640 Speaker 1: there's a huge bull market in digital assets over the 597 00:32:05,680 --> 00:32:07,920 Speaker 1: next decade. And we think that one of the first 598 00:32:07,920 --> 00:32:09,880 Speaker 1: things you're gonna want to own online is going to 599 00:32:09,960 --> 00:32:12,400 Speaker 1: be your name and your reputation. And that's really the 600 00:32:12,640 --> 00:32:16,960 Speaker 1: push behind digital identity. Oh, Matthew, I'm already thinking how 601 00:32:17,000 --> 00:32:20,640 Speaker 1: hard it was to get my Twitter name or my 602 00:32:21,280 --> 00:32:25,280 Speaker 1: website name or things like that. They're going to be countless. 603 00:32:25,320 --> 00:32:27,680 Speaker 1: I mean, we're gonna have to have like Caroline Hyde 604 00:32:27,760 --> 00:32:30,920 Speaker 1: version one to three like, what explain to me exactly 605 00:32:30,960 --> 00:32:34,280 Speaker 1: how it's gonna look, how it's gonna feel the domains. Yeah, 606 00:32:34,360 --> 00:32:36,640 Speaker 1: so you actually had a really good example there. How 607 00:32:36,720 --> 00:32:39,280 Speaker 1: much do you think, you know, Elon musk Twitter handle 608 00:32:39,480 --> 00:32:41,600 Speaker 1: is worth to him, right, and it's probably worth a 609 00:32:41,640 --> 00:32:44,200 Speaker 1: million dollars? And the thing is he doesn't own that 610 00:32:44,320 --> 00:32:47,040 Speaker 1: name on Twitter, uh, and you know he could get 611 00:32:47,120 --> 00:32:50,200 Speaker 1: kicked off on Twitter and then and he could lose it, right. 612 00:32:50,440 --> 00:32:52,360 Speaker 1: And this is kind of a whole promise of Web 613 00:32:52,400 --> 00:32:54,440 Speaker 1: three and crypto in general, is that you should be 614 00:32:54,440 --> 00:32:57,120 Speaker 1: owning these digital assets. And so instead of having like 615 00:32:57,280 --> 00:32:59,480 Speaker 1: one name on Twitter and a different name on Instagram 616 00:32:59,520 --> 00:33:01,480 Speaker 1: and a different one on Reddit, you could have a 617 00:33:01,520 --> 00:33:04,480 Speaker 1: single name that you own and control inside your crypto wallet, 618 00:33:04,720 --> 00:33:06,760 Speaker 1: and then you can use that to sign into these 619 00:33:07,040 --> 00:33:09,680 Speaker 1: uh different social applications, and then you would have a 620 00:33:09,680 --> 00:33:12,360 Speaker 1: consistent reputation. How expensive would it be? Like what what 621 00:33:12,400 --> 00:33:15,920 Speaker 1: if someone just went out there involved the celebrity ones up? Yeah? Yeah, 622 00:33:15,960 --> 00:33:18,560 Speaker 1: So the domain names are anywhere from five dollars to 623 00:33:18,680 --> 00:33:21,360 Speaker 1: thousands of dollars. It's kind of like the traditional domain 624 00:33:21,440 --> 00:33:24,480 Speaker 1: name industry, with one major differences. There's no renewal fees. 625 00:33:24,520 --> 00:33:27,080 Speaker 1: For n f T domains because they are blockchain assets, 626 00:33:27,200 --> 00:33:30,680 Speaker 1: and through our partners, you can actually get domain names 627 00:33:30,680 --> 00:33:32,840 Speaker 1: for freeze. So a lot of wallet apps now are 628 00:33:32,880 --> 00:33:35,680 Speaker 1: working with us to make sure that everyone who downloads 629 00:33:35,680 --> 00:33:38,479 Speaker 1: a digital crypto wallet also gets a domain name so 630 00:33:38,520 --> 00:33:40,880 Speaker 1: that they have an easy end point to deposit money 631 00:33:40,880 --> 00:33:43,520 Speaker 1: into their application. So there's not gonna be a barrier 632 00:33:43,560 --> 00:33:45,320 Speaker 1: to entry here if someone wants to get on. But 633 00:33:45,360 --> 00:33:46,960 Speaker 1: then on the high end, we are seeing sales for 634 00:33:47,000 --> 00:33:49,440 Speaker 1: these domain names in the hundreds of thousands of dollars 635 00:33:49,440 --> 00:33:51,560 Speaker 1: for some of the poor previeu ones. How help us 636 00:33:51,640 --> 00:33:54,480 Speaker 1: understand this? One of your investors in online talking about 637 00:33:54,480 --> 00:33:57,960 Speaker 1: how you're kind of what coin basis scripto you are 638 00:33:58,000 --> 00:34:01,520 Speaker 1: to web three, What does that really mean and how 639 00:34:01,520 --> 00:34:03,160 Speaker 1: does that kind of put you at the center of 640 00:34:03,160 --> 00:34:07,520 Speaker 1: an industry in that kind of a way. Yeah, So, um, 641 00:34:07,560 --> 00:34:11,200 Speaker 1: the very first simple use case is sending cryptocurrency, and 642 00:34:11,440 --> 00:34:14,520 Speaker 1: if you have like twenty or thirty different cryptocurrency addresses, 643 00:34:14,560 --> 00:34:16,000 Speaker 1: you're not gonna be able to remember all of them, 644 00:34:16,000 --> 00:34:18,480 Speaker 1: and they're really long computer hex decimal addresses. So that's 645 00:34:18,520 --> 00:34:20,919 Speaker 1: kind of like I P addresses on the Internet in 646 00:34:20,960 --> 00:34:25,160 Speaker 1: the early nineties and everyone replaced those with domain names 647 00:34:25,160 --> 00:34:27,960 Speaker 1: like dot com and this is like that except for individuals. 648 00:34:28,120 --> 00:34:30,440 Speaker 1: So for dot com domain names, where you have you know, 649 00:34:30,480 --> 00:34:35,279 Speaker 1: maybe cifty million businesses and three million registered domains. For this, 650 00:34:35,320 --> 00:34:37,040 Speaker 1: we actually think it's gonna be every single user on 651 00:34:37,080 --> 00:34:40,160 Speaker 1: the Internet. So that's three billion people, um with a 652 00:34:40,400 --> 00:34:42,400 Speaker 1: with an n f T domain to make it easier 653 00:34:42,400 --> 00:34:45,839 Speaker 1: for people to find information about them, verify information about them, 654 00:34:46,160 --> 00:34:48,520 Speaker 1: and send them money. So if you asked me like 655 00:34:48,600 --> 00:34:50,680 Speaker 1: what am I going to be using this for, um, 656 00:34:50,760 --> 00:34:53,120 Speaker 1: we think it's gonna help you have portable reputation on 657 00:34:53,160 --> 00:34:56,080 Speaker 1: the Internet. And so you know, we have two major 658 00:34:56,080 --> 00:34:58,680 Speaker 1: problems on the Internet. One right now is that you 659 00:34:58,680 --> 00:35:01,279 Speaker 1: actually can't own any thing, and then the other one 660 00:35:01,520 --> 00:35:05,440 Speaker 1: is all these problems around frauds, spam bots, etcetera. We 661 00:35:05,480 --> 00:35:07,800 Speaker 1: actually just talked about with the Musk and the prior segment, 662 00:35:08,200 --> 00:35:10,719 Speaker 1: and if you had portable reputation, you could actually help 663 00:35:10,800 --> 00:35:13,920 Speaker 1: solve that problem. So I'll give you for instance, um 664 00:35:14,560 --> 00:35:18,720 Speaker 1: my dad actually bought tickets on eBay and it happened 665 00:35:18,719 --> 00:35:20,520 Speaker 1: to be from a scammer. And the thing is is 666 00:35:20,560 --> 00:35:23,080 Speaker 1: that scammer can actually just go and then start selling 667 00:35:23,400 --> 00:35:26,160 Speaker 1: you know, fake tickets or whatever on a different website 668 00:35:26,239 --> 00:35:29,360 Speaker 1: on Amazon Marketplace. And because there's not a consistent reputation 669 00:35:29,400 --> 00:35:33,759 Speaker 1: across applications online, um, these applications can't check and see 670 00:35:33,800 --> 00:35:36,640 Speaker 1: if that person is potentially uh doing fraud. But if 671 00:35:36,640 --> 00:35:39,080 Speaker 1: you had a consistent reputation so that you were Caroline 672 00:35:39,680 --> 00:35:41,839 Speaker 1: dot n f t on one platform, and then your 673 00:35:41,880 --> 00:35:44,040 Speaker 1: Caroline dot n ft over here and your Caroline dot 674 00:35:44,160 --> 00:35:46,640 Speaker 1: n ft on Twitter, and then you have a consistent reputation, 675 00:35:46,719 --> 00:35:49,840 Speaker 1: and we think that actually makes the Internet saver. Very briefly, 676 00:35:50,000 --> 00:35:51,759 Speaker 1: Matthew and I understand it's a hard one to have 677 00:35:51,800 --> 00:35:54,240 Speaker 1: to tackle, but you know, this is a time where 678 00:35:54,520 --> 00:35:56,920 Speaker 1: valuations of crumbles. You managed to get an above a 679 00:35:56,920 --> 00:35:59,840 Speaker 1: billion and a sixty five million amount, did you have 680 00:35:59,880 --> 00:36:02,160 Speaker 1: to down down rade a little bit when you first 681 00:36:02,160 --> 00:36:06,719 Speaker 1: started having the conversations. So we've seen cooling across the 682 00:36:06,719 --> 00:36:09,319 Speaker 1: whole market, so unstop whole domains. There's no exception to that. 683 00:36:09,600 --> 00:36:12,200 Speaker 1: And we're just fortunate enough to be working with some 684 00:36:12,280 --> 00:36:14,200 Speaker 1: investors who've been in space for a long time. Can 685 00:36:14,320 --> 00:36:16,640 Speaker 1: terrorist or leave for this. They've been investing in crypto 686 00:36:16,719 --> 00:36:18,360 Speaker 1: for tim plus years. So I would actually say that 687 00:36:18,440 --> 00:36:21,040 Speaker 1: founders out there looking to raise money. Um, if you're 688 00:36:21,040 --> 00:36:23,000 Speaker 1: in it for the long run, then I think you'll 689 00:36:23,040 --> 00:36:24,920 Speaker 1: be fine going out and funding right now. It is 690 00:36:24,960 --> 00:36:29,000 Speaker 1: significantly harder than it was, but that's okay. I mean, 691 00:36:29,040 --> 00:36:31,360 Speaker 1: if you're here to really create utility for users instead 692 00:36:31,360 --> 00:36:33,799 Speaker 1: of speculation, you'll still find a business model that works 693 00:36:33,840 --> 00:36:35,880 Speaker 1: and you'll still be able to figure it out. Well said, 694 00:36:36,239 --> 00:36:38,480 Speaker 1: I think will thank you so much. See founder of 695 00:36:38,560 --> 00:36:42,000 Speaker 1: Unstoppable Domains and Shinelli Bassett has always thank you so much. 696 00:36:50,680 --> 00:36:51,960 Speaker 1: We want to take a moment to look at the 697 00:36:52,000 --> 00:36:56,560 Speaker 1: relationship between Hollywood and anti abortion states. Now. We often 698 00:36:56,640 --> 00:36:59,920 Speaker 1: consider perhaps media companies, movie stars to be relatively outspoken 699 00:37:00,000 --> 00:37:04,360 Speaker 1: about the overturning of ROVERSUS Wade, even some attending protests sometimes, 700 00:37:04,640 --> 00:37:07,520 Speaker 1: but the Hollywood machine is sort of not taking sides. 701 00:37:07,840 --> 00:37:10,720 Speaker 1: It's spending billions in film and TV production in states 702 00:37:10,719 --> 00:37:13,680 Speaker 1: seeking to restrict or outlaw abortion. We want to talk 703 00:37:13,719 --> 00:37:15,959 Speaker 1: about perhaps some of the tension there with Blue Begs 704 00:37:16,000 --> 00:37:19,359 Speaker 1: Media and Entertainment editor Kelly Gilbam. Of course, who is here. 705 00:37:19,400 --> 00:37:21,560 Speaker 1: He's just got over COVID, So we thank you so 706 00:37:21,640 --> 00:37:23,840 Speaker 1: much for doing it with us and and Kelly and 707 00:37:24,000 --> 00:37:27,320 Speaker 1: what I'm really interested in is we're not going to 708 00:37:27,400 --> 00:37:29,719 Speaker 1: take sides either, because we know this as a nation divided, 709 00:37:30,000 --> 00:37:32,800 Speaker 1: but talk to us about how there is a tension 710 00:37:32,800 --> 00:37:35,960 Speaker 1: perhaps between employees that work at certain media companies and 711 00:37:36,000 --> 00:37:38,520 Speaker 1: the decision making process that media is in terms of 712 00:37:38,560 --> 00:37:41,920 Speaker 1: spending money and making movies and TV productions in states 713 00:37:41,920 --> 00:37:45,080 Speaker 1: that perhaps some employees might feel don't reflect some of 714 00:37:45,360 --> 00:37:50,080 Speaker 1: the way they want their us to reflecting hard position 715 00:37:50,480 --> 00:37:54,879 Speaker 1: for these big media companies to be in today, you know, Hollywood. 716 00:37:54,920 --> 00:37:57,920 Speaker 1: I think people they're kind of see the business says 717 00:37:57,960 --> 00:38:01,279 Speaker 1: both being part of culture and leading culture. So when 718 00:38:01,280 --> 00:38:04,320 Speaker 1: there is a big social issue, UH, they feel strongly 719 00:38:04,360 --> 00:38:06,680 Speaker 1: about they like to be at the forefront of that. 720 00:38:07,040 --> 00:38:10,399 Speaker 1: But at the same time, UM, for each project that 721 00:38:10,440 --> 00:38:14,760 Speaker 1: you see, each television show, each movie, these take years 722 00:38:14,800 --> 00:38:19,480 Speaker 1: and years of planning. They're incredibly expensive, and every single 723 00:38:19,640 --> 00:38:23,279 Speaker 1: line item on the budget UM that can be removed 724 00:38:23,560 --> 00:38:26,080 Speaker 1: UM is going to be good for the overall production. 725 00:38:26,239 --> 00:38:29,560 Speaker 1: And sometimes the financials mean the difference between something getting 726 00:38:29,600 --> 00:38:34,560 Speaker 1: made and not getting made. So states like Georgia, for example, 727 00:38:34,640 --> 00:38:37,960 Speaker 1: that has UH tried to put in more restrictive abortion 728 00:38:38,440 --> 00:38:42,160 Speaker 1: laws have been really good at being the cheaper option 729 00:38:42,840 --> 00:38:45,080 Speaker 1: for some of these companies, So they've got to balance 730 00:38:45,120 --> 00:38:47,880 Speaker 1: getting their projects made. But at the same time, they 731 00:38:47,960 --> 00:38:51,399 Speaker 1: do have a lot of employees that are pretty outspoken, 732 00:38:51,640 --> 00:38:54,200 Speaker 1: and not only that, but they've got business partners like 733 00:38:54,280 --> 00:38:57,840 Speaker 1: actors and directors that are outspoken to about their values. 734 00:38:58,200 --> 00:39:02,399 Speaker 1: So they're trying to both run the companies and and 735 00:39:02,440 --> 00:39:05,239 Speaker 1: try to keep these employees happy and not make this 736 00:39:05,320 --> 00:39:08,440 Speaker 1: a talent retention issue at the same time. Interesting the 737 00:39:08,440 --> 00:39:11,719 Speaker 1: talent retention and element of it, Kelly as well, are 738 00:39:11,760 --> 00:39:15,359 Speaker 1: their New states other states that are trying to woo 739 00:39:16,080 --> 00:39:18,839 Speaker 1: the making of movies and TV in that place because 740 00:39:18,880 --> 00:39:21,160 Speaker 1: they say, look, we're not looking to change anything up 741 00:39:21,200 --> 00:39:26,000 Speaker 1: in terms of nobility to access healthcare. You know, I 742 00:39:26,080 --> 00:39:28,319 Speaker 1: haven't seen. I did a lot of reporting on this, 743 00:39:28,400 --> 00:39:30,840 Speaker 1: and I was a little surprised at the other states, 744 00:39:31,040 --> 00:39:35,920 Speaker 1: um that are not seeking to restrict abortion rights. Uh, 745 00:39:36,040 --> 00:39:39,200 Speaker 1: they're not selling themselves quite as much. UM. I covered 746 00:39:39,239 --> 00:39:42,600 Speaker 1: one talked about one interesting case and a story I 747 00:39:42,640 --> 00:39:45,880 Speaker 1: wrote about a film called Eric LaRue. This is a 748 00:39:45,920 --> 00:39:48,600 Speaker 1: film directed by Michael Shannon. It actually was a project 749 00:39:48,680 --> 00:39:52,760 Speaker 1: that was set to start filming in Arkansas. That's a 750 00:39:53,000 --> 00:39:57,040 Speaker 1: state that has some of the most severe abortion restrictions. UM, 751 00:39:57,480 --> 00:40:01,200 Speaker 1: and the filmmakers actually decided to move to North Carolina, 752 00:40:02,239 --> 00:40:05,400 Speaker 1: a more free state. But the film officials that I 753 00:40:05,480 --> 00:40:09,120 Speaker 1: spoke to in North Carolina weren't out there trying to say, hey, 754 00:40:09,160 --> 00:40:12,240 Speaker 1: come here. They're just saying, you know, that's great. But honestly, 755 00:40:12,440 --> 00:40:15,040 Speaker 1: we heard about it from you in the press. Um. 756 00:40:15,360 --> 00:40:18,080 Speaker 1: You know, they're not trying to make that pitch that hard, 757 00:40:18,440 --> 00:40:21,400 Speaker 1: but you know, it could be something that affects the 758 00:40:21,440 --> 00:40:26,640 Speaker 1: business long term. UM. If people are pressuring the executives 759 00:40:26,680 --> 00:40:30,040 Speaker 1: of this company, if they're finding, you know, actors that 760 00:40:30,320 --> 00:40:32,839 Speaker 1: are going to attract people at the box office don't 761 00:40:32,840 --> 00:40:34,920 Speaker 1: want to film in those states, it could be a 762 00:40:34,960 --> 00:40:39,200 Speaker 1: long term benefit for other states or other countries, Um, 763 00:40:39,239 --> 00:40:44,520 Speaker 1: that both have financial incentives for filmmakers and are more 764 00:40:44,560 --> 00:40:48,879 Speaker 1: free on the abortion issue. It's a fascinating read. Thank 765 00:40:48,920 --> 00:40:51,200 Speaker 1: you so much for spending some time just outlining the 766 00:40:51,239 --> 00:40:54,320 Speaker 1: depth of your reporting that went into it all. Kelly Gilblum, 767 00:40:54,480 --> 00:40:58,279 Speaker 1: of course she is immediate and entertainment editor here with Bloomberg, 768 00:40:58,440 --> 00:41:00,960 Speaker 1: and of course that now does it from this edition 769 00:41:00,960 --> 00:41:04,480 Speaker 1: of Bloomberg Technology. We have a special episode coming up Monday, 770 00:41:04,640 --> 00:41:07,759 Speaker 1: I'm going to focus on antitrust legislation, scrutinary, a big 771 00:41:07,760 --> 00:41:10,040 Speaker 1: tech in particular. We've just been discussing it, of course 772 00:41:10,080 --> 00:41:12,920 Speaker 1: with our own Max Traffkin about the FDC, the focus 773 00:41:12,960 --> 00:41:15,279 Speaker 1: on meta, so you do not want to miss that conversation. 774 00:41:15,480 --> 00:41:17,960 Speaker 1: I meanwhile, of course catch the podcast. Can find it 775 00:41:18,040 --> 00:41:21,360 Speaker 1: on the terminals as online on apples, Spotify. I heart 776 00:41:22,040 --> 00:41:23,799 Speaker 1: you don't want to miss that one either. Have a 777 00:41:23,840 --> 00:41:26,239 Speaker 1: wonderful weekend everyone, This is Bloomberg