1 00:00:01,440 --> 00:00:02,160 Speaker 1: From Mahart. 2 00:00:02,320 --> 00:00:06,720 Speaker 2: We're Innovation of Money and Power co line in Silicon Valley, NBN. 3 00:00:07,080 --> 00:00:11,320 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Love Love. 4 00:00:25,400 --> 00:00:27,840 Speaker 3: Live from New York and San Francisco. This is Bloomberg 5 00:00:27,880 --> 00:00:31,520 Speaker 3: Technology coming up. China Tech stocks on a tear after 6 00:00:31,560 --> 00:00:33,479 Speaker 3: Beijing's push to boost growth. 7 00:00:33,880 --> 00:00:36,200 Speaker 4: And the CHIPSAC gets a boost too with a bill 8 00:00:36,200 --> 00:00:39,120 Speaker 4: headed to Biden's desk that cuts red tape. 9 00:00:39,040 --> 00:00:42,680 Speaker 3: And we discuss all things MNA, the City Group's head 10 00:00:42,920 --> 00:00:46,080 Speaker 3: of Tech Deals. But first let's check in on these markets, 11 00:00:46,200 --> 00:00:48,839 Speaker 3: and we start with the move of the day. Ed, 12 00:00:49,159 --> 00:00:51,640 Speaker 3: it is China Stocks, it is China Tech Stocks, and 13 00:00:51,680 --> 00:00:54,160 Speaker 3: we shine a light on the Golden Dragon Index. Here 14 00:00:54,240 --> 00:00:55,920 Speaker 3: we are up more than six percent. What does that mean? 15 00:00:55,960 --> 00:00:57,400 Speaker 3: It is the biggest move in more than a year, 16 00:00:57,440 --> 00:00:59,760 Speaker 3: and we're up training at the highest level in more 17 00:00:59,800 --> 00:01:02,880 Speaker 3: than three months. Stimulus to the Chinese economy. It helps 18 00:01:02,880 --> 00:01:04,240 Speaker 3: some of the key names that you're watching. 19 00:01:05,319 --> 00:01:08,480 Speaker 4: Yeah, and understandably those two key names at Ali BARBERANJD 20 00:01:08,600 --> 00:01:12,840 Speaker 4: dot com e commerce focus names, but also multifaceted tech companies. 21 00:01:13,040 --> 00:01:15,560 Speaker 4: Actually two of the names on the index in positive territory. 22 00:01:15,640 --> 00:01:18,160 Speaker 4: Year to date, many of them are not. We will 23 00:01:18,160 --> 00:01:20,520 Speaker 4: go to our reporter later in the hour to talk 24 00:01:20,560 --> 00:01:23,399 Speaker 4: about the impact of stimulus on China tech. I'm also 25 00:01:23,400 --> 00:01:25,959 Speaker 4: looking at chip stocks at the index level. The socks 26 00:01:26,240 --> 00:01:28,600 Speaker 4: is up for a second day so far this week. 27 00:01:28,680 --> 00:01:31,920 Speaker 4: Intel what might happen to it is dominating headlines. But 28 00:01:31,959 --> 00:01:35,920 Speaker 4: there's also some newscare about progress i'd say about onshoring 29 00:01:35,959 --> 00:01:38,279 Speaker 4: the industry here in the United States. Bring us that story. 30 00:01:38,400 --> 00:01:39,120 Speaker 5: Yeah, let's dive in. 31 00:01:39,160 --> 00:01:42,640 Speaker 3: Because the US House approved legislation that would exempt some 32 00:01:42,840 --> 00:01:46,800 Speaker 3: chip manufacturing projects from federal permitting requirements. It's a bid 33 00:01:46,800 --> 00:01:49,440 Speaker 3: to speed up the buildout of the US semiconductor industry 34 00:01:49,640 --> 00:01:52,280 Speaker 3: from moos. Mackenzie Hawkins joins us. Now, so what they 35 00:01:52,320 --> 00:01:54,440 Speaker 3: don't have to take certain environmental. 36 00:01:53,920 --> 00:01:58,960 Speaker 6: Boxes, right, So, whenever our projects get money from the 37 00:01:58,960 --> 00:02:02,520 Speaker 6: federal government in excess of two thousand dollars, which every 38 00:02:02,720 --> 00:02:05,400 Speaker 6: chip company that's getting money from the Biden administration is 39 00:02:05,440 --> 00:02:08,280 Speaker 6: getting well north of that, they have to go through 40 00:02:08,400 --> 00:02:12,840 Speaker 6: the National Environmental Policy Act permitting process, which basically requires 41 00:02:12,880 --> 00:02:15,880 Speaker 6: all federal agencies to review the environmental impact of their 42 00:02:15,880 --> 00:02:19,840 Speaker 6: major actions and also opens up projects to significant litigation. 43 00:02:20,560 --> 00:02:23,280 Speaker 6: There's been concern in the chip industry from companies like 44 00:02:23,360 --> 00:02:27,000 Speaker 6: Intel and Samsung and Taiwan Sumi connecting manufacturing company, that 45 00:02:27,040 --> 00:02:29,720 Speaker 6: this could produce months or even years of delays on 46 00:02:29,800 --> 00:02:32,839 Speaker 6: projects that the companies and the Biden administration have said 47 00:02:32,880 --> 00:02:36,079 Speaker 6: are critical to national security. So the bill that the 48 00:02:36,080 --> 00:02:38,680 Speaker 6: House passed yesterday, it's passed the Senate last year, so 49 00:02:38,680 --> 00:02:41,400 Speaker 6: it's going to Biden's desk, would exempt some of those 50 00:02:41,440 --> 00:02:44,480 Speaker 6: projects from federal environmental review. They'd still have to go 51 00:02:44,480 --> 00:02:47,120 Speaker 6: through state local permitting processes, which companies say can be 52 00:02:47,160 --> 00:02:50,480 Speaker 6: a headache. Environmental groups say are bedrock climate law. But 53 00:02:50,600 --> 00:02:53,120 Speaker 6: this is a significant red tape cuttake at the federal level. 54 00:02:54,280 --> 00:02:54,480 Speaker 5: Mac. 55 00:02:54,520 --> 00:02:56,600 Speaker 4: What you do so well for our audience around the 56 00:02:56,639 --> 00:02:59,200 Speaker 4: world is that there's billions of dollars coming from the 57 00:02:59,240 --> 00:03:02,959 Speaker 4: Chips Act, and lots of names on paper sound to benefit. 58 00:03:03,480 --> 00:03:05,960 Speaker 4: But building a fab takes a long time and it 59 00:03:06,000 --> 00:03:09,000 Speaker 4: takes all that money. Is there any evidence that actually 60 00:03:09,040 --> 00:03:13,440 Speaker 4: something is started in America, that there's some infrastructure popping 61 00:03:13,520 --> 00:03:14,359 Speaker 4: up around the place. 62 00:03:15,919 --> 00:03:19,639 Speaker 6: So we've seen more money put into chip factory construction 63 00:03:19,880 --> 00:03:22,120 Speaker 6: in the past four years, kind of leading up to 64 00:03:22,160 --> 00:03:22,680 Speaker 6: the package of. 65 00:03:22,639 --> 00:03:23,119 Speaker 2: The chip stack. 66 00:03:23,160 --> 00:03:25,880 Speaker 6: When folks thought Hey, this subs package might be coming, 67 00:03:26,120 --> 00:03:28,919 Speaker 6: and of course after its enactment and during its implementation 68 00:03:29,200 --> 00:03:31,200 Speaker 6: then we saw in the two decades before that. So 69 00:03:31,240 --> 00:03:34,760 Speaker 6: companies are absolutely committing real money to these construction projects, 70 00:03:35,120 --> 00:03:37,800 Speaker 6: but they also need to wait and see market conditions 71 00:03:37,800 --> 00:03:40,280 Speaker 6: before they decide when and how and at what level 72 00:03:40,320 --> 00:03:43,200 Speaker 6: to fully build out their projects. You see, companies make 73 00:03:43,200 --> 00:03:45,920 Speaker 6: commitments to one fab or two fabs, but they have 74 00:03:46,040 --> 00:03:48,560 Speaker 6: sites that could accommodate eight and that of course depends 75 00:03:48,600 --> 00:03:52,400 Speaker 6: on customer demand. But in terms of the construction process, 76 00:03:52,440 --> 00:03:55,280 Speaker 6: that's where the permitting stuff really comes into play. And 77 00:03:55,360 --> 00:03:58,640 Speaker 6: so for companies that have been waiting to secure environmental 78 00:03:58,640 --> 00:04:02,040 Speaker 6: permits or have been going through that process alongside actually 79 00:04:02,080 --> 00:04:04,240 Speaker 6: putting shovels in the ground, this could be a really 80 00:04:04,280 --> 00:04:06,920 Speaker 6: big deal in giving them confidence of their construction timelines 81 00:04:06,920 --> 00:04:09,560 Speaker 6: for projects of that in many cases are already well underway. 82 00:04:10,560 --> 00:04:13,320 Speaker 4: Bloomberg's Mackenzie Hawkins with the latest and the flow of 83 00:04:13,360 --> 00:04:15,680 Speaker 4: dollars from the CHIPSAC Thank you very much now, As 84 00:04:15,720 --> 00:04:19,520 Speaker 4: misquite McKenzie discussed, Intel is one of the chip companies 85 00:04:19,520 --> 00:04:22,800 Speaker 4: that's pledged to invest billions into US chip capacity. But 86 00:04:22,839 --> 00:04:26,480 Speaker 4: the top story for this industry right now is reports 87 00:04:26,480 --> 00:04:31,320 Speaker 4: that rival Qualcomm has approached Intel over a friendly takeover, 88 00:04:31,720 --> 00:04:35,880 Speaker 4: and Bloomberg reporting that money manager Apollos offered billions of 89 00:04:35,920 --> 00:04:39,440 Speaker 4: dollars to Intel in an equity like investment. 90 00:04:39,480 --> 00:04:40,280 Speaker 7: The stage is set. 91 00:04:41,000 --> 00:04:41,880 Speaker 5: What happens next? 92 00:04:41,960 --> 00:04:45,560 Speaker 4: Let's discuss with Phil Dury, head of Technology and Communications 93 00:04:45,600 --> 00:04:48,359 Speaker 4: Investment Banking at City Group. When I woke up on 94 00:04:48,440 --> 00:04:52,320 Speaker 4: Monday morning, I was still recovering from the weekend where 95 00:04:52,320 --> 00:04:55,680 Speaker 4: I was recovering from Friday. In a headline where one 96 00:04:55,760 --> 00:04:59,400 Speaker 4: of the biggest chip makers, Qualcomm, it's reported we're going 97 00:04:59,440 --> 00:05:04,320 Speaker 4: for Intel. Well, in this environment, does that deal happen? Well, 98 00:05:04,360 --> 00:05:06,359 Speaker 4: you probably won't be surprised that. I'm not going to 99 00:05:06,360 --> 00:05:10,080 Speaker 4: comment specifically on the deal. What I would say Intel 100 00:05:10,120 --> 00:05:14,159 Speaker 4: has a storied history dating back to nineteen sixty eight. 101 00:05:14,160 --> 00:05:14,720 Speaker 7: They've got a. 102 00:05:14,680 --> 00:05:19,679 Speaker 8: Collection of phenomenal assets. The company is clearly going through 103 00:05:19,960 --> 00:05:23,679 Speaker 8: a transformation. Pat and his team have been pretty clear 104 00:05:23,760 --> 00:05:26,960 Speaker 8: in the plans that they have outlined, including some significant 105 00:05:27,000 --> 00:05:30,640 Speaker 8: CAPEX reduction. Well I would say is I'm not surprised 106 00:05:30,720 --> 00:05:35,400 Speaker 8: that there's speculation around a number of interested parties, whether 107 00:05:35,480 --> 00:05:39,480 Speaker 8: that be strategic or whether that be private equity who 108 00:05:39,600 --> 00:05:43,279 Speaker 8: is looking to invest quite meaningfully across a whole artificial 109 00:05:43,320 --> 00:05:48,159 Speaker 8: intelligence ecosystem, which we've already seen, and we've already seen 110 00:05:48,200 --> 00:05:50,960 Speaker 8: Apollo obviously work with Intel. 111 00:05:52,240 --> 00:05:52,599 Speaker 2: As well. 112 00:05:52,640 --> 00:05:56,760 Speaker 4: Island that neither Intel nor qualcom commented on that reporting. 113 00:05:57,120 --> 00:05:59,280 Speaker 4: And the other piece of reporting was Apollo, which has 114 00:05:59,320 --> 00:06:02,880 Speaker 4: an existing relationship with Intel and against Strategic in the 115 00:06:02,920 --> 00:06:06,599 Speaker 4: sense that they had co invested in a specific project. 116 00:06:07,160 --> 00:06:09,719 Speaker 4: Why is an Intel attractive to a name like Apollo. 117 00:06:10,080 --> 00:06:15,640 Speaker 4: It is a duration bet. It's infrastructure, you know, in 118 00:06:15,680 --> 00:06:19,560 Speaker 4: the world of AI, it's building something physical and waiting 119 00:06:19,600 --> 00:06:20,520 Speaker 4: for the payoff later. 120 00:06:21,040 --> 00:06:21,240 Speaker 2: Yeah. 121 00:06:21,279 --> 00:06:26,520 Speaker 8: Look, I think this is long term generational investment. Funds 122 00:06:26,560 --> 00:06:31,440 Speaker 8: like Apollo take and extremely long term view beyond the frankly, 123 00:06:31,520 --> 00:06:34,560 Speaker 8: the more of a short term nature of the public market. 124 00:06:35,000 --> 00:06:36,359 Speaker 8: And when we look at M and A and the 125 00:06:36,360 --> 00:06:38,560 Speaker 8: trends that we've seen over the last year, and MNA 126 00:06:38,600 --> 00:06:41,880 Speaker 8: activity is up quite meaningfully off two very low years 127 00:06:41,920 --> 00:06:46,480 Speaker 8: in twenty twenty two and twenty twenty three, and we're 128 00:06:46,520 --> 00:06:49,799 Speaker 8: seeing strategics much more active. Right City advised on AMD 129 00:06:49,920 --> 00:06:53,360 Speaker 8: and ZT Systems. We advised on IBM and Hashi Corp. 130 00:06:53,920 --> 00:06:58,320 Speaker 8: So not as transformational necessarily as intel as we're talking about, 131 00:06:58,640 --> 00:07:02,960 Speaker 8: but we're definitely seeing strategic be more proactive as it 132 00:07:03,000 --> 00:07:07,279 Speaker 8: relates to growth vertical adjacencies. Where we've seen public equity, 133 00:07:07,279 --> 00:07:11,520 Speaker 8: most private equity, most activia today is on dislocated public 134 00:07:11,560 --> 00:07:15,680 Speaker 8: market valuations. What we haven't seen so far is the 135 00:07:16,840 --> 00:07:22,080 Speaker 8: huge number of private companies with high watermark valuations in 136 00:07:22,120 --> 00:07:25,960 Speaker 8: twenty twenty one starting to come to market. But time 137 00:07:26,640 --> 00:07:30,360 Speaker 8: results in valuation compounding, and that's where we do have 138 00:07:30,440 --> 00:07:34,800 Speaker 8: high expectations for twenty twenty five and twenty twenty six, 139 00:07:34,960 --> 00:07:35,920 Speaker 8: and it's already happening. 140 00:07:35,920 --> 00:07:39,200 Speaker 3: Phil Today news of one of the biggest take privates 141 00:07:39,680 --> 00:07:40,960 Speaker 3: in the software area. 142 00:07:41,120 --> 00:07:43,119 Speaker 5: We've got Blackstone. 143 00:07:42,840 --> 00:07:47,560 Speaker 3: Vista Equity making an eight billion dollar take private offer 144 00:07:47,840 --> 00:07:51,120 Speaker 3: to a company called Smartsheet. Is that the sort of 145 00:07:51,520 --> 00:07:55,480 Speaker 3: software long term revenue that they want to be digging into. 146 00:07:55,920 --> 00:07:58,960 Speaker 3: Where do you see other opportunities in the take private field? 147 00:08:00,240 --> 00:08:04,080 Speaker 8: I think, Caroin, that's exactly spot on. We anticipate that 148 00:08:04,120 --> 00:08:07,600 Speaker 8: we'll see more of this, you know, I think that 149 00:08:08,800 --> 00:08:13,760 Speaker 8: artificial intelligence embedded on two years of data points in 150 00:08:14,000 --> 00:08:17,720 Speaker 8: enterprise software is going to start to become really, really interesting. 151 00:08:17,840 --> 00:08:20,440 Speaker 8: When we think about the first quarter of this year, 152 00:08:21,000 --> 00:08:25,200 Speaker 8: the AI investment boom, if you will, focused on hardware, 153 00:08:26,080 --> 00:08:32,400 Speaker 8: focused on chips where and actually we saw weakness in software. 154 00:08:33,200 --> 00:08:36,840 Speaker 8: That weakness driven by a diversion of enterprise funds towards AI. 155 00:08:37,320 --> 00:08:39,480 Speaker 8: But now we're starting to look forward. We've got more 156 00:08:39,600 --> 00:08:42,120 Speaker 8: data points and we're starting to see a pickup an 157 00:08:42,160 --> 00:08:46,120 Speaker 8: activity for enterprise software with embedded AI and how that 158 00:08:46,120 --> 00:08:48,920 Speaker 8: can really be a catalyst for enterprise. So I think 159 00:08:48,920 --> 00:08:50,839 Speaker 8: you're spot on. I think we'll see a lot more 160 00:08:50,880 --> 00:08:53,880 Speaker 8: of this in twenty twenty five and twenty six, and 161 00:08:53,920 --> 00:08:56,480 Speaker 8: we'll start to see that private supply come to market 162 00:08:56,520 --> 00:08:58,960 Speaker 8: as well, which is held off for now because companies 163 00:08:59,000 --> 00:09:03,520 Speaker 8: were very well capitalized. Private equity hasn't had to do anything. 164 00:09:03,559 --> 00:09:06,200 Speaker 8: But now there is some pressure around DPI, and I 165 00:09:06,200 --> 00:09:09,199 Speaker 8: think we'll see a more vibrant cell side as well 166 00:09:09,240 --> 00:09:11,480 Speaker 8: as an active byside that. 167 00:09:11,440 --> 00:09:15,840 Speaker 3: Sort of pigeonholes the positive side of making deals and 168 00:09:15,880 --> 00:09:19,480 Speaker 3: taking private there's the negative side of stressed assets. 169 00:09:19,520 --> 00:09:21,400 Speaker 5: I mean almost Intel might be that story. 170 00:09:21,440 --> 00:09:24,680 Speaker 3: But we're looking today at Liberty Broadband. Of course, key 171 00:09:24,679 --> 00:09:28,760 Speaker 3: Billion m Malone trying to place together some of his 172 00:09:28,920 --> 00:09:31,680 Speaker 3: stressed streaming and cable assets. 173 00:09:31,920 --> 00:09:33,760 Speaker 5: I'm looking at Liberty Broadband. 174 00:09:33,280 --> 00:09:37,560 Speaker 3: And Charter Communications seemingly getting towards some sort of merger deal. 175 00:09:37,600 --> 00:09:37,840 Speaker 2: Here. 176 00:09:38,080 --> 00:09:39,920 Speaker 3: I'm going to see more of that mergers because they 177 00:09:40,000 --> 00:09:42,160 Speaker 3: have to to survive because of industry pressure. 178 00:09:43,960 --> 00:09:48,400 Speaker 8: I think you'll see combinations for sure. I also think 179 00:09:48,880 --> 00:09:52,600 Speaker 8: you'll see you'll see companies looking to carve and split 180 00:09:53,640 --> 00:09:56,360 Speaker 8: and break out very valuable assets as well. 181 00:09:56,559 --> 00:09:57,720 Speaker 5: There's no doubt we're in. 182 00:09:57,640 --> 00:10:00,960 Speaker 8: A moment of time driven by AI, which is causing 183 00:10:01,000 --> 00:10:06,240 Speaker 8: corporations to look and reflect about how they're going to 184 00:10:06,240 --> 00:10:09,559 Speaker 8: crystallize and maximize the valuation for their companies. That can 185 00:10:09,640 --> 00:10:13,920 Speaker 8: result in adjacent combinations, but it can also result in 186 00:10:14,120 --> 00:10:18,000 Speaker 8: illumination of value through carve outs through split offs. You know, 187 00:10:18,040 --> 00:10:20,559 Speaker 8: we've not talked about activism, but you know, we think 188 00:10:20,600 --> 00:10:22,640 Speaker 8: this will be a theme that activists will focus on 189 00:10:22,679 --> 00:10:24,880 Speaker 8: over the next couple of years as well. We're definitely 190 00:10:24,920 --> 00:10:27,920 Speaker 8: going to go through change, and we're going to go 191 00:10:28,000 --> 00:10:30,680 Speaker 8: through change through a greater sense of certainty. On the 192 00:10:30,720 --> 00:10:34,280 Speaker 8: geopolitical this year has been a year of transition, more 193 00:10:34,320 --> 00:10:36,920 Speaker 8: elections than we've ever seen in the past. Obviously, we've 194 00:10:36,920 --> 00:10:39,000 Speaker 8: got a big one coming up. We will have a 195 00:10:39,040 --> 00:10:42,880 Speaker 8: lot greater certainty on both the macro and the geopolitical 196 00:10:42,880 --> 00:10:45,520 Speaker 8: when we get into twenty five and twenty six. So yeah, 197 00:10:45,679 --> 00:10:47,400 Speaker 8: I believe we're going to see more activity for a 198 00:10:47,559 --> 00:10:48,360 Speaker 8: host of reasons. 199 00:10:48,520 --> 00:10:50,720 Speaker 4: You mentioned AMD and ZT. What was the other one 200 00:10:50,760 --> 00:10:52,200 Speaker 4: that you mentioned that you advised on. 201 00:10:53,040 --> 00:10:54,080 Speaker 5: IBM and Hashiko? 202 00:10:54,360 --> 00:10:57,040 Speaker 4: What is unique to both of those as they got done? 203 00:10:57,800 --> 00:10:59,480 Speaker 4: And so I know you won't comment on Intel and 204 00:10:59,559 --> 00:11:02,600 Speaker 4: Quilcom the idea of but in the context of what 205 00:11:02,640 --> 00:11:06,480 Speaker 4: happens in November antitrust, you know, in this environment, do 206 00:11:06,679 --> 00:11:10,959 Speaker 4: deals of that scale on paper, Intel ONQUO proceed. 207 00:11:10,520 --> 00:11:12,240 Speaker 8: Well, the data is going to show a mixed bag 208 00:11:12,280 --> 00:11:16,560 Speaker 8: of results, right. We also advised on the Broadcom VMware 209 00:11:16,760 --> 00:11:20,400 Speaker 8: deal which went through. Obviously Microsoft Activision went through, but 210 00:11:20,480 --> 00:11:22,800 Speaker 8: there are examples of deals that haven't gone through. What 211 00:11:22,840 --> 00:11:24,760 Speaker 8: it means is just look, there's a lot of focus, 212 00:11:25,559 --> 00:11:28,960 Speaker 8: a lot of preparedness that's going on early on with 213 00:11:29,120 --> 00:11:34,800 Speaker 8: advisors and corporations in terms of how certain can we 214 00:11:34,920 --> 00:11:40,319 Speaker 8: be with regard to global antitrust decisions, cities role positioned there, 215 00:11:40,320 --> 00:11:42,160 Speaker 8: we're operating one hundred and sixty countries. 216 00:11:42,200 --> 00:11:43,280 Speaker 5: It gives us a good. 217 00:11:43,720 --> 00:11:48,560 Speaker 8: Global spotlight on how regulatory bodies are going to react. 218 00:11:48,600 --> 00:11:49,200 Speaker 2: But you're right. 219 00:11:50,280 --> 00:11:53,760 Speaker 8: All you can do is building contingencies early on in 220 00:11:53,840 --> 00:11:56,320 Speaker 8: case deals break. But it can be a distraction when 221 00:11:56,679 --> 00:11:59,440 Speaker 8: you know MNA is announced and it takes twelve, eighteen, 222 00:11:59,520 --> 00:12:01,559 Speaker 8: twenty four months to complete. 223 00:12:01,880 --> 00:12:04,680 Speaker 3: Sometimes the lawyers for is when Phil Drury, thank you 224 00:12:05,040 --> 00:12:09,360 Speaker 3: had a Technologogy Communications investment banking City Group coming up. 225 00:12:09,679 --> 00:12:12,280 Speaker 3: Roku remains loyal to the hardware that put the company 226 00:12:12,320 --> 00:12:16,600 Speaker 3: on the map when the company's streaming ambitions then, and. 227 00:12:16,559 --> 00:12:18,360 Speaker 4: I actually want to go back to Liberty Broadband. We 228 00:12:18,440 --> 00:12:21,440 Speaker 4: mentioned it in that conversation, but the specifics are that 229 00:12:21,480 --> 00:12:25,079 Speaker 4: Liberty went back to Charter with a counter offer, and 230 00:12:25,080 --> 00:12:27,560 Speaker 4: that's kind of what's pushing up the shares twenty seven percent. 231 00:12:27,679 --> 00:12:28,800 Speaker 5: I'd also point out. 232 00:12:28,640 --> 00:12:31,439 Speaker 4: Like it's a big move, but Liberty is a company 233 00:12:31,440 --> 00:12:33,720 Speaker 4: the carry that you also pointed out has been under 234 00:12:33,720 --> 00:12:36,559 Speaker 4: a brid of pressure, the stockdown significantly over a period 235 00:12:36,600 --> 00:12:40,680 Speaker 4: of time. This deal pretty dry one actually in truth, 236 00:12:40,720 --> 00:12:43,640 Speaker 4: but it's one the market's paying attention this morning. This 237 00:12:44,000 --> 00:12:59,320 Speaker 4: is Bloomberg Technology. Roku says the company remains quote very 238 00:12:59,400 --> 00:13:02,640 Speaker 4: committed to its set top boxes as it veils a 239 00:13:02,640 --> 00:13:06,320 Speaker 4: new faster version of Roku Ultra streaming box. This even 240 00:13:06,520 --> 00:13:09,960 Speaker 4: is the electronics industry shifts to smart TVs with built 241 00:13:10,000 --> 00:13:13,480 Speaker 4: in streaming tech For more Bloomberg Smart German joins us. Now, 242 00:13:13,480 --> 00:13:15,960 Speaker 4: I find this story so interesting for two reasons. I 243 00:13:16,000 --> 00:13:19,120 Speaker 4: have a Roku TV still believe it or not, alongside 244 00:13:19,120 --> 00:13:23,040 Speaker 4: the Samsung Smart TV. But that sort of set top 245 00:13:23,080 --> 00:13:25,560 Speaker 4: box is such a small part of their business, like 246 00:13:25,600 --> 00:13:26,679 Speaker 4: they're keeping it going. 247 00:13:26,840 --> 00:13:30,680 Speaker 9: Why, Yeah, the set top box is a very interesting 248 00:13:30,960 --> 00:13:33,280 Speaker 9: thing for Roku. Right, that is their namesake, that is 249 00:13:33,320 --> 00:13:35,199 Speaker 9: how they made their money, that is how they developed 250 00:13:35,240 --> 00:13:38,320 Speaker 9: into a brand. Now for them, it's two things. One, 251 00:13:38,360 --> 00:13:41,800 Speaker 9: it's all about content, that's their platform business. Two it's 252 00:13:41,840 --> 00:13:45,800 Speaker 9: all about integration of the Roku operating system into TVs 253 00:13:45,840 --> 00:13:48,600 Speaker 9: you buy off the shelf at Target, at best Spy, 254 00:13:48,840 --> 00:13:50,480 Speaker 9: at Amazon, you name it. 255 00:13:50,640 --> 00:13:52,840 Speaker 7: But the set top box is still interesting for them, right. 256 00:13:52,880 --> 00:13:54,680 Speaker 9: They don't make a ton of money off these things. 257 00:13:54,679 --> 00:13:56,920 Speaker 9: They cap out at one hundred dollars per piece and 258 00:13:56,920 --> 00:14:00,679 Speaker 9: their money losers, but they believe it brings content which 259 00:14:00,800 --> 00:14:03,880 Speaker 9: they're making a lot of money off of, including from advertising, 260 00:14:04,160 --> 00:14:07,400 Speaker 9: into more people's homes. And it's a lot cheaper for 261 00:14:07,480 --> 00:14:10,600 Speaker 9: consumers to get into the Roku experience, to get into 262 00:14:10,640 --> 00:14:12,960 Speaker 9: the smart TV experience if they have an older TV 263 00:14:13,280 --> 00:14:15,960 Speaker 9: by buying one of these hunred dollar boxes versus going 264 00:14:15,960 --> 00:14:18,680 Speaker 9: out and buying a new several hundred dollars TV. Right, 265 00:14:19,000 --> 00:14:21,200 Speaker 9: there's a lot of overlap between the experience you get 266 00:14:21,240 --> 00:14:23,600 Speaker 9: from a set top box and a smart TV. One 267 00:14:23,680 --> 00:14:25,720 Speaker 9: just requires you to buy the whole TV, the other 268 00:14:25,800 --> 00:14:28,280 Speaker 9: requires you to just plug a box into your hdmiport. 269 00:14:28,920 --> 00:14:31,480 Speaker 3: We're looking at one year chart of Roku. We now 270 00:14:31,480 --> 00:14:33,960 Speaker 3: moved to an interday, but it has been under pressure. 271 00:14:34,040 --> 00:14:36,960 Speaker 3: The earnings haven't been pleasing investors. 272 00:14:37,440 --> 00:14:40,280 Speaker 5: Is this part of drumming up support from the investor. 273 00:14:39,920 --> 00:14:42,320 Speaker 7: Base they've been suffering. 274 00:14:42,440 --> 00:14:45,680 Speaker 9: I don't think the investor base is entirely happy or 275 00:14:45,680 --> 00:14:48,520 Speaker 9: fixated on the set top box business. I think if 276 00:14:48,520 --> 00:14:50,800 Speaker 9: you're investing in Roku at this point, it's because of 277 00:14:50,840 --> 00:14:55,200 Speaker 9: the content business, the advertising, the platform, the integration into 278 00:14:55,240 --> 00:14:58,200 Speaker 9: smart TVs and other products. This is a bit of 279 00:14:58,400 --> 00:15:01,200 Speaker 9: moving away from that focus that I think investors are 280 00:15:01,240 --> 00:15:03,680 Speaker 9: wanting to see. But at the same time, this is 281 00:15:03,720 --> 00:15:06,800 Speaker 9: a cheap way to bring more people into the ecosystem 282 00:15:07,120 --> 00:15:11,000 Speaker 9: and gather more support for its platform and more users there. Right, 283 00:15:11,280 --> 00:15:13,640 Speaker 9: the majority of sales at this point are via first 284 00:15:13,640 --> 00:15:16,600 Speaker 9: party and third partiesmar our TVs. But adding more people 285 00:15:16,600 --> 00:15:18,800 Speaker 9: to the user base, more people that can be exposed 286 00:15:18,840 --> 00:15:21,920 Speaker 9: to Roku content, is not necessarily a bad thing. Just 287 00:15:21,920 --> 00:15:24,320 Speaker 9: to hope for investors is this doesn't take away from 288 00:15:24,320 --> 00:15:27,160 Speaker 9: the core competency that is the thing actually making the 289 00:15:27,200 --> 00:15:27,920 Speaker 9: company money. 290 00:15:28,440 --> 00:15:31,840 Speaker 5: Marc German, We thank you. That's about Google now. 291 00:15:32,040 --> 00:15:35,320 Speaker 3: It says it has seen faster progress in artificial intelligence 292 00:15:35,360 --> 00:15:38,320 Speaker 3: as a result of a closer collaboration between its cloud 293 00:15:38,360 --> 00:15:42,000 Speaker 3: computing unit and its AI research lab. Google Cloud struct 294 00:15:42,000 --> 00:15:45,520 Speaker 3: deals to weave its latest AI models into popular consumer products, 295 00:15:45,560 --> 00:15:48,400 Speaker 3: sharing more than seventy five customer stories, one of which 296 00:15:49,000 --> 00:15:53,400 Speaker 3: was the social app Snapchat, which we'll start using Google's 297 00:15:53,400 --> 00:15:56,600 Speaker 3: generative AI model to help power Snapchat's AI chat Thot 298 00:15:57,080 --> 00:16:00,320 Speaker 3: New Mags Asia accounts joins us for more to deal 299 00:16:00,400 --> 00:16:03,360 Speaker 3: with open AI, but they started leaning more into Gemini. 300 00:16:03,400 --> 00:16:07,640 Speaker 10: It seems like yeah, so snap originally released their chatbot 301 00:16:07,680 --> 00:16:10,320 Speaker 10: just last year and it started off using models from 302 00:16:10,320 --> 00:16:13,560 Speaker 10: open Ai. As you mentioned, the reason they also started 303 00:16:13,600 --> 00:16:16,760 Speaker 10: testing and using Gemini is because when you go on Snapchat, 304 00:16:16,800 --> 00:16:19,600 Speaker 10: a lot of the time you're communicating through videos or images, 305 00:16:20,160 --> 00:16:22,520 Speaker 10: and they felt like Gemini's models were really good at 306 00:16:22,560 --> 00:16:25,160 Speaker 10: doing that and being able to do images, videos and 307 00:16:25,240 --> 00:16:26,800 Speaker 10: texts or at the same time. 308 00:16:27,040 --> 00:16:29,040 Speaker 7: So that's why they started using Gemini as well. 309 00:16:30,040 --> 00:16:30,360 Speaker 5: Heicha. 310 00:16:30,480 --> 00:16:32,120 Speaker 4: I think I'm right and saying, you were at Snap 311 00:16:32,200 --> 00:16:34,400 Speaker 4: the other day and you've kind of seen the latest 312 00:16:34,480 --> 00:16:38,280 Speaker 4: gen of hardware from them, and this is heating up, 313 00:16:38,320 --> 00:16:42,800 Speaker 4: Like meta, it was a surprise story that at least 314 00:16:42,800 --> 00:16:46,360 Speaker 4: the ray bands and your interaction using a voice based 315 00:16:46,680 --> 00:16:49,680 Speaker 4: AI assistant would take off. You know, I've had experience 316 00:16:49,720 --> 00:16:50,040 Speaker 4: with it. 317 00:16:50,400 --> 00:16:51,680 Speaker 5: How real is this for Snap? 318 00:16:51,760 --> 00:16:53,440 Speaker 4: Like, do they really think this is going to be 319 00:16:53,480 --> 00:16:54,840 Speaker 4: the future for them? 320 00:16:55,840 --> 00:16:56,720 Speaker 7: I think they do. 321 00:16:56,840 --> 00:16:58,960 Speaker 10: I mean they're spending a lot of money, right They 322 00:16:59,160 --> 00:17:01,800 Speaker 10: are supposed to spend up to one point five billion 323 00:17:01,840 --> 00:17:03,720 Speaker 10: dollars I believe this year, which is about half of 324 00:17:03,760 --> 00:17:07,040 Speaker 10: their expenses on things like infrastructure. 325 00:17:06,400 --> 00:17:07,840 Speaker 7: To support all of these new tools. 326 00:17:07,920 --> 00:17:11,879 Speaker 10: If we're thinking about artificial intelligence, augmented reality through glasses, 327 00:17:12,040 --> 00:17:13,440 Speaker 10: machine learning, all those sorts. 328 00:17:13,280 --> 00:17:15,399 Speaker 7: Of things, they're really doubling down on this. 329 00:17:15,720 --> 00:17:17,800 Speaker 10: So if you think about AI, it's not just a chatbot, 330 00:17:18,280 --> 00:17:20,840 Speaker 10: but it's AI and the glasses as you mentioned, and 331 00:17:20,880 --> 00:17:24,480 Speaker 10: it's AI obviously to rank and recommend content to create 332 00:17:24,520 --> 00:17:25,400 Speaker 10: new experiences. 333 00:17:25,520 --> 00:17:26,760 Speaker 7: So they're really betting. 334 00:17:26,480 --> 00:17:29,000 Speaker 10: On this is a key part of the company and 335 00:17:29,000 --> 00:17:30,280 Speaker 10: a key part of their future. 336 00:17:32,200 --> 00:17:34,719 Speaker 4: Bloombergsats accounts all across the Snap story. 337 00:17:34,880 --> 00:17:44,480 Speaker 5: Thank you very much, time now for talking tech. 338 00:17:44,600 --> 00:17:48,400 Speaker 3: First, up writing assistant software maker Grammarly is announced it's 339 00:17:48,440 --> 00:17:51,880 Speaker 3: adding a new CFO and CTO bolstering the AI startups 340 00:17:51,920 --> 00:17:54,800 Speaker 3: management now. According to Grammarly, both new executives actually assisted 341 00:17:54,800 --> 00:17:55,680 Speaker 3: their previous. 342 00:17:55,320 --> 00:17:57,000 Speaker 5: Companies in the igo process. 343 00:17:57,320 --> 00:18:01,240 Speaker 3: Family is currently valued at thirteen billion dollars plus. Boeing 344 00:18:01,320 --> 00:18:03,800 Speaker 3: when it bumps up its pay proposal to striking workers 345 00:18:03,800 --> 00:18:06,040 Speaker 3: to thirty percent now that's sweetened from the twenty five 346 00:18:06,080 --> 00:18:09,080 Speaker 3: percent rejected earlier this month, still less than the forty 347 00:18:09,119 --> 00:18:11,920 Speaker 3: percent sought by the workers' union. Boeing said the terms 348 00:18:11,920 --> 00:18:14,240 Speaker 3: of the pay proposal are final and valid till the 349 00:18:14,280 --> 00:18:16,960 Speaker 3: end of the day of September the twenty seventh, and 350 00:18:17,119 --> 00:18:20,880 Speaker 3: TikTok will be shuttering its music service in November, ending 351 00:18:20,880 --> 00:18:23,480 Speaker 3: an experiment to compete with Spotify and Apple that started 352 00:18:23,680 --> 00:18:27,240 Speaker 3: back in twenty nineteen in a statement released TikTok Music 353 00:18:27,320 --> 00:18:29,840 Speaker 3: will be shutting down on November the twenty eighth, and 354 00:18:29,880 --> 00:18:31,680 Speaker 3: customer data will be deleted. 355 00:18:32,040 --> 00:18:33,240 Speaker 5: And what have you got? 356 00:18:33,720 --> 00:18:37,159 Speaker 4: Another news story, Elon Musk and his social platform X 357 00:18:37,320 --> 00:18:41,040 Speaker 4: lost a legal fight over unpaid severance to a former 358 00:18:41,320 --> 00:18:44,359 Speaker 4: Twitter employee who was laid off when Musk took over 359 00:18:44,640 --> 00:18:47,679 Speaker 4: in twenty twenty two. Now remember back in July, X 360 00:18:47,720 --> 00:18:51,119 Speaker 4: defeated a lawsuit alleging that at least five hundred million 361 00:18:51,160 --> 00:18:54,480 Speaker 4: dollars in severance pay was owed to about six thousand 362 00:18:54,560 --> 00:18:58,040 Speaker 4: laid off employees. Let's discuss with Bloomberg's multi Nayak In 363 00:18:58,920 --> 00:19:02,280 Speaker 4: long story short about two thousand employees said that they 364 00:19:02,280 --> 00:19:05,119 Speaker 4: were short changed when they were let go. We spoke 365 00:19:05,160 --> 00:19:07,360 Speaker 4: to some of them, like over the last couple of years. 366 00:19:07,600 --> 00:19:09,560 Speaker 4: What are the specifics of this case. 367 00:19:10,840 --> 00:19:14,560 Speaker 11: So this is happening separate from the court proceeding, in 368 00:19:14,600 --> 00:19:18,439 Speaker 11: that this is happening in arbitration behind closed doors. So 369 00:19:18,480 --> 00:19:21,680 Speaker 11: this was a private arbitration proceeding. And as you said, 370 00:19:21,720 --> 00:19:25,159 Speaker 11: there are more than two thousand employees who have brought 371 00:19:25,160 --> 00:19:29,000 Speaker 11: complaints against the company, but they have proceeded in arbitration 372 00:19:29,280 --> 00:19:34,240 Speaker 11: and are fighting against the company. So now we received 373 00:19:34,240 --> 00:19:36,719 Speaker 11: actually last week, the first ruling in one of these 374 00:19:36,800 --> 00:19:40,760 Speaker 11: arputuation proceedings and looks like it was a win for 375 00:19:40,840 --> 00:19:45,040 Speaker 11: the worker. And there are you know, thousands more of 376 00:19:45,119 --> 00:19:49,600 Speaker 11: these complaints that will still be arbituated. But fifteen cases 377 00:19:49,680 --> 00:19:52,440 Speaker 11: we know so far have been arbituated, and we're waiting 378 00:19:52,440 --> 00:19:54,480 Speaker 11: for rulings in other cases as well. 379 00:19:55,440 --> 00:20:00,480 Speaker 3: How seismic is this one off ruling? Will it forceultimately 380 00:20:01,080 --> 00:20:04,480 Speaker 3: for X to settle in a broader number? 381 00:20:05,640 --> 00:20:08,119 Speaker 11: Of course, it definitely is a good sign for the 382 00:20:08,240 --> 00:20:11,800 Speaker 11: employees because you know, one win could lead to more wins, 383 00:20:12,200 --> 00:20:16,000 Speaker 11: and that potentially allows their attorneys to you know, sit 384 00:20:16,040 --> 00:20:19,320 Speaker 11: across the table with Twitter and Mask and say, hey, listen, 385 00:20:19,400 --> 00:20:22,160 Speaker 11: we're winning all these cases. Maybe it's just easier if 386 00:20:22,160 --> 00:20:25,000 Speaker 11: we just settle this and you know, get done with 387 00:20:25,080 --> 00:20:28,399 Speaker 11: this dispute once and for all. So it's definitely a 388 00:20:28,440 --> 00:20:31,280 Speaker 11: good positive sign. And you know, this is the first 389 00:20:31,280 --> 00:20:34,400 Speaker 11: of many cases. And now that you know we are 390 00:20:34,440 --> 00:20:37,479 Speaker 11: seeing the first ruling being a positive one, it is 391 00:20:37,520 --> 00:20:39,760 Speaker 11: possible that this sort of trend will continue for the 392 00:20:39,800 --> 00:20:42,040 Speaker 11: other arbituation proceedings as well. 393 00:20:43,040 --> 00:20:45,160 Speaker 4: Multi if it's the first of many, would you take 394 00:20:45,240 --> 00:20:50,159 Speaker 4: us into the sort of mystery world of technology severance disputes. 395 00:20:51,320 --> 00:20:53,960 Speaker 4: There are many people interested in this, right the lawyers 396 00:20:53,960 --> 00:20:57,840 Speaker 4: are incentivized to get their clients some pay. You know, 397 00:20:58,119 --> 00:21:00,439 Speaker 4: I remember the early days. It must take over in 398 00:21:00,520 --> 00:21:03,719 Speaker 4: just the chaos in some of the chat forums of 399 00:21:03,720 --> 00:21:04,440 Speaker 4: what was happening. 400 00:21:04,600 --> 00:21:07,200 Speaker 7: What's it like covering these Well. 401 00:21:07,200 --> 00:21:11,199 Speaker 11: Yeah, so you know, this particular arbitation proceeding is happening 402 00:21:11,200 --> 00:21:13,280 Speaker 11: closed doors. So unfortunately, I wish I could be a 403 00:21:13,280 --> 00:21:16,000 Speaker 11: fly on the wall, but I can't. I'm not allowed to, 404 00:21:16,720 --> 00:21:19,719 Speaker 11: you know, enter. But but just in talking to attorneys, 405 00:21:19,760 --> 00:21:22,640 Speaker 11: these are very very sort of different from port proceedings 406 00:21:22,840 --> 00:21:25,560 Speaker 11: in that, you know, the rules together, evidence, all of 407 00:21:25,600 --> 00:21:27,800 Speaker 11: that tends to be a little different. But you know, 408 00:21:28,359 --> 00:21:32,280 Speaker 11: it's just very very private. We don't get to and 409 00:21:32,320 --> 00:21:35,600 Speaker 11: even this memo that we got, you know, Kurt Wagner, 410 00:21:35,680 --> 00:21:39,160 Speaker 11: our tech reporter who reported this story with me our sources, 411 00:21:39,160 --> 00:21:42,760 Speaker 11: sheared memo and that's how we got to know about 412 00:21:42,800 --> 00:21:45,640 Speaker 11: this ruling. So we were no unless the attorney sort 413 00:21:45,680 --> 00:21:48,000 Speaker 11: of went to port to enforce the ruling. So yeah, 414 00:21:48,040 --> 00:21:50,520 Speaker 11: so all of this happens closed doors. But in court, 415 00:21:50,680 --> 00:21:53,240 Speaker 11: you know, when we do have these disants. Of course, 416 00:21:53,280 --> 00:21:55,040 Speaker 11: there's a lot of drama, and you know, if they 417 00:21:55,080 --> 00:21:57,040 Speaker 11: go to trial, you get to see a lot of 418 00:21:57,840 --> 00:22:01,520 Speaker 11: you know, inside information about what happened behind the scenes 419 00:22:01,840 --> 00:22:06,480 Speaker 11: in terms of, you know, the chaos that happens behind 420 00:22:06,480 --> 00:22:09,240 Speaker 11: the scenes at these companies and all the different players 421 00:22:09,280 --> 00:22:12,280 Speaker 11: that sort of maybe need decisions that potentially you have 422 00:22:12,320 --> 00:22:15,520 Speaker 11: heard the employees names the employees, could you know all 423 00:22:15,640 --> 00:22:18,400 Speaker 11: to share how they feel about how they were. 424 00:22:18,280 --> 00:22:21,639 Speaker 4: Shortchy Multi, gotta go, Bloomberg's Multi, Nayak, Thank you. This 425 00:22:21,720 --> 00:22:22,280 Speaker 4: is Bloomberg. 426 00:22:29,880 --> 00:22:32,280 Speaker 3: Welcome back to Bloomberg Technology. I'm Caroline Hyde in New. 427 00:22:32,240 --> 00:22:34,800 Speaker 4: York and I'm Ed Ludlow in San Francisco. If you're 428 00:22:34,840 --> 00:22:37,159 Speaker 4: just joining us. One of the big stories in technology 429 00:22:37,160 --> 00:22:41,160 Speaker 4: today is the US listed shares of Chinese technology companies. 430 00:22:41,200 --> 00:22:44,240 Speaker 4: The news is the Chinese government coming with a big 431 00:22:44,320 --> 00:22:47,880 Speaker 4: stimulus package to kickstart the economy. So you see e 432 00:22:47,920 --> 00:22:51,720 Speaker 4: commerce names like JD dot Com, Ali Barber doing really well, 433 00:22:51,720 --> 00:22:53,919 Speaker 4: but at the index level, then aw's that Golden Dragon 434 00:22:53,960 --> 00:22:57,360 Speaker 4: index now on track for its best day since January 435 00:22:57,560 --> 00:22:59,960 Speaker 4: of twenty twenty three. Let's set out to Bloomberg News 436 00:23:00,040 --> 00:23:03,680 Speaker 4: reporter Henry Wren, who's in London and covers China tech stocks, 437 00:23:03,680 --> 00:23:08,439 Speaker 4: and some of these names have underperformed year to day. Recently, Henry, 438 00:23:08,480 --> 00:23:12,159 Speaker 4: they've rebounded. But a big stimulus package that helps the 439 00:23:12,240 --> 00:23:15,440 Speaker 4: Chinese economy will help some of China's tech sector as well. 440 00:23:16,680 --> 00:23:16,880 Speaker 8: Yeah. 441 00:23:16,960 --> 00:23:20,280 Speaker 12: Indeed, what we see today is Chinese authorities really made 442 00:23:20,359 --> 00:23:24,520 Speaker 12: a concerted push to help boost the economy as well 443 00:23:24,560 --> 00:23:28,280 Speaker 12: as stock markets. These stimulus measures can be seen in 444 00:23:28,359 --> 00:23:31,440 Speaker 12: three buckets. One is providing more liquidity to the economy 445 00:23:31,480 --> 00:23:35,440 Speaker 12: in terms of cutting rates, lowering banks reserve requirement racials. 446 00:23:35,720 --> 00:23:40,000 Speaker 12: Second is about helping the housing market, including lowering the 447 00:23:40,480 --> 00:23:44,760 Speaker 12: mortgage rates for existing mortgages. And the third part, which 448 00:23:44,840 --> 00:23:48,000 Speaker 12: is probably the most eye catching part, is about providing 449 00:23:48,400 --> 00:23:52,560 Speaker 12: direct to liquidity support to the stock market. The Central 450 00:23:52,600 --> 00:23:57,280 Speaker 12: Bank has pledged eight hundred billion remen bee of initial 451 00:23:57,400 --> 00:24:00,919 Speaker 12: liquidity and it has said that it's con letering in 452 00:24:01,040 --> 00:24:05,400 Speaker 12: terms of providing a stock stabilization fund. So all those 453 00:24:05,480 --> 00:24:09,320 Speaker 12: measures putting together really help boost investor sentiment in terms 454 00:24:09,359 --> 00:24:11,440 Speaker 12: of Chinese internet stocks that we've been seeing today. 455 00:24:13,600 --> 00:24:19,159 Speaker 4: Yes, Ed, why e commerce? Why those names j D 456 00:24:19,320 --> 00:24:21,200 Speaker 4: and Ali Barba doing so well? 457 00:24:21,200 --> 00:24:25,360 Speaker 12: Henry, Yeah, because as we as we know that all 458 00:24:25,400 --> 00:24:28,560 Speaker 12: those Chinese internet companies as well as those e commerce 459 00:24:28,600 --> 00:24:32,800 Speaker 12: companies have been highly related to Chinese consumer spending, and 460 00:24:33,000 --> 00:24:37,160 Speaker 12: we've been seeing them under quite heavy pressure recently given 461 00:24:37,280 --> 00:24:39,200 Speaker 12: the Chinese economic slowdown. 462 00:24:39,560 --> 00:24:41,440 Speaker 5: We've been hearing. 463 00:24:41,400 --> 00:24:46,600 Speaker 12: Those companies executive talking about China's necro pressure being PDD, 464 00:24:46,760 --> 00:24:49,560 Speaker 12: being JD, being Ali Baba for example. Ali Baba's e 465 00:24:49,600 --> 00:24:53,840 Speaker 12: commerce business just screwed by single digit in the past quarter, 466 00:24:54,040 --> 00:24:56,439 Speaker 12: as well as the Value Champion PDD for example, it 467 00:24:56,680 --> 00:24:59,720 Speaker 12: was a stock market Darling, but in August it's issued 468 00:24:59,760 --> 00:25:02,320 Speaker 12: a warning and said that growth has been slowing and 469 00:25:02,400 --> 00:25:05,560 Speaker 12: need to be investing more. Competition has become more intense, 470 00:25:05,920 --> 00:25:08,600 Speaker 12: so we see the stocks really under pressure, and those 471 00:25:08,720 --> 00:25:12,040 Speaker 12: Miles's pressure measures could be seen as the first step 472 00:25:12,200 --> 00:25:15,600 Speaker 12: if the authority is getting more serious in terms of 473 00:25:15,600 --> 00:25:16,600 Speaker 12: boosting the economy. 474 00:25:16,840 --> 00:25:19,680 Speaker 3: Henry, we know these companies so well here in the 475 00:25:19,800 --> 00:25:23,640 Speaker 3: United States too. They have global pushes taming for example, 476 00:25:24,000 --> 00:25:26,560 Speaker 3: how much are their revenues still so focused on China 477 00:25:26,720 --> 00:25:27,920 Speaker 3: or how global is it becoming? 478 00:25:29,280 --> 00:25:31,639 Speaker 12: Yeah, it really depends on companies, right, So when we 479 00:25:31,680 --> 00:25:34,399 Speaker 12: are talking about PDD for example, like it has a 480 00:25:34,440 --> 00:25:37,760 Speaker 12: big global push in terms of expanding to US market 481 00:25:37,800 --> 00:25:41,040 Speaker 12: European markets for its team will brand. However, for that 482 00:25:41,560 --> 00:25:44,840 Speaker 12: international business, it's under pressure as well because the US 483 00:25:45,080 --> 00:25:47,560 Speaker 12: government is having its new rules in terms of curbing 484 00:25:47,760 --> 00:25:51,680 Speaker 12: those cross borders small packaged shipping as well. So the 485 00:25:51,680 --> 00:25:55,320 Speaker 12: domestic market, the local market is really key for those companies. 486 00:25:55,560 --> 00:25:58,840 Speaker 12: Even though Ali Baba has its you know, international push 487 00:25:58,880 --> 00:26:02,000 Speaker 12: as well, the local market is still key because the 488 00:26:03,200 --> 00:26:06,360 Speaker 12: timo and talbail business for Alibaba for example, is still 489 00:26:06,400 --> 00:26:10,959 Speaker 12: about two thirds of its revenue generation. So the local 490 00:26:11,080 --> 00:26:13,600 Speaker 12: really matters. And what we've been seeing today in terms 491 00:26:13,640 --> 00:26:17,880 Speaker 12: of the stimulus pressure, stimulus measures really helps the investor sentiment. 492 00:26:18,240 --> 00:26:20,800 Speaker 3: What's the next catalyst then, Henry, how much are people 493 00:26:20,840 --> 00:26:22,560 Speaker 3: saying you can continue to buy? 494 00:26:24,280 --> 00:26:26,399 Speaker 12: On the fiscal side, I would say so, we've been 495 00:26:26,440 --> 00:26:30,000 Speaker 12: seeing lots of measures on monetary side, for example, in 496 00:26:30,080 --> 00:26:33,160 Speaker 12: terms of cutting rates, in terms of you know, lowering 497 00:26:33,600 --> 00:26:36,720 Speaker 12: down payment ratios or cutting rates for existing mortgages. 498 00:26:37,000 --> 00:26:38,240 Speaker 5: But on the fiscal. 499 00:26:37,920 --> 00:26:40,920 Speaker 12: Side, it's people what really cares about because the problem 500 00:26:41,000 --> 00:26:44,159 Speaker 12: with China's economy is not just about lack of liquidity 501 00:26:44,280 --> 00:26:46,960 Speaker 12: in the economy. It's about you know, lack of consumer 502 00:26:47,040 --> 00:26:51,040 Speaker 12: demand it's about a weak consumption among Chinese consumers. We 503 00:26:51,119 --> 00:26:54,840 Speaker 12: have the national holidays coming up, and it's really about, 504 00:26:54,880 --> 00:26:57,600 Speaker 12: you know, how to help Chinese consumers to buy more, 505 00:26:57,680 --> 00:27:01,160 Speaker 12: to shop more. So the focus for investor in next 506 00:27:01,240 --> 00:27:04,119 Speaker 12: it's really about on the fiscal side, whether the fiscal 507 00:27:04,240 --> 00:27:07,359 Speaker 12: more fiscal policies for or will come through us. 508 00:27:07,400 --> 00:27:11,840 Speaker 5: Well, Henry Wren, thank you very much. Indeed. Meanwhile, in the. 509 00:27:11,800 --> 00:27:14,280 Speaker 3: Political sphere, former President Donald Trump has been. 510 00:27:14,200 --> 00:27:16,160 Speaker 5: Discussing China, accusing the nation. 511 00:27:16,000 --> 00:27:18,040 Speaker 3: Of failing to honor a deal to buy fifty billion 512 00:27:18,080 --> 00:27:18,640 Speaker 3: dollars worth in. 513 00:27:18,640 --> 00:27:20,040 Speaker 5: US agricultural experts. 514 00:27:20,160 --> 00:27:23,040 Speaker 3: Trump vowed to raise the matter with the Chinese president's Usinping. 515 00:27:23,200 --> 00:27:26,080 Speaker 3: If the Republican nominee returns to the White House. Both 516 00:27:26,080 --> 00:27:28,600 Speaker 3: Trump and Kamala harris A vowed to take a tough 517 00:27:28,640 --> 00:27:29,960 Speaker 3: stance against. 518 00:27:29,600 --> 00:27:33,720 Speaker 4: Beijing ed Meanwhile, the UN General Assembly is in full 519 00:27:33,760 --> 00:27:37,320 Speaker 4: swing in Manhattan, and China a key discussion for President 520 00:27:37,440 --> 00:27:39,800 Speaker 4: Biden in his address that's going to read on where 521 00:27:39,840 --> 00:27:44,320 Speaker 4: things stand with Bloomberg's National security reporter Nick Waddens and Nick. 522 00:27:45,359 --> 00:27:48,280 Speaker 4: President Biden was speaking just ahead of this program starting. 523 00:27:48,359 --> 00:27:51,040 Speaker 4: What did he say, particularly in the context of the 524 00:27:51,040 --> 00:27:54,520 Speaker 4: things that we care about here, technology, AI and anything 525 00:27:54,560 --> 00:27:55,920 Speaker 4: relating to national security. 526 00:27:56,080 --> 00:27:58,160 Speaker 13: Well, I mean, what you saw really was this sort 527 00:27:58,200 --> 00:28:01,880 Speaker 13: of a valedictory address for President and Biden. A big 528 00:28:01,920 --> 00:28:05,640 Speaker 13: thing he said was listen, don't cling to power. Sometimes 529 00:28:05,640 --> 00:28:07,439 Speaker 13: you have to do what's right for your country, and 530 00:28:07,480 --> 00:28:10,879 Speaker 13: remember that you serve the people, not yourself. So a 531 00:28:10,880 --> 00:28:14,360 Speaker 13: bit of a shot across the bow there. It was interesting. 532 00:28:14,400 --> 00:28:17,919 Speaker 13: He did feature AI pretty prominently in his speech. It 533 00:28:18,000 --> 00:28:20,639 Speaker 13: was mostly a look back, but really one of the 534 00:28:20,680 --> 00:28:24,399 Speaker 13: few places where he actually looked forward was saying AI 535 00:28:24,520 --> 00:28:27,800 Speaker 13: has a lot of promise, but they're in inherent dangers 536 00:28:27,840 --> 00:28:31,800 Speaker 13: to it and essentially seeking a cautious approach. But you know, 537 00:28:31,840 --> 00:28:34,280 Speaker 13: the big thing here, the message that he may not 538 00:28:34,359 --> 00:28:37,159 Speaker 13: want to send but that is sort of inescapable, is 539 00:28:37,160 --> 00:28:40,240 Speaker 13: the fact that he's going to be off the stage 540 00:28:40,360 --> 00:28:43,080 Speaker 13: literally and metaphorically in just a couple months. So there's 541 00:28:43,120 --> 00:28:47,040 Speaker 13: not a lot he can say to look forward given 542 00:28:47,840 --> 00:28:50,440 Speaker 13: the uncertainty around who's going to succeed him as president. 543 00:28:51,320 --> 00:28:52,760 Speaker 5: Let's talk about what therefore. 544 00:28:52,800 --> 00:28:55,640 Speaker 3: Kamala Harris has been saying in recent days it fundraises 545 00:28:55,680 --> 00:28:58,960 Speaker 3: here in Manhattan as well about AI, I wanting to 546 00:28:59,000 --> 00:29:02,040 Speaker 3: foster it around crypto And it's interesting it's not just 547 00:29:02,080 --> 00:29:04,240 Speaker 3: world leaders in town. You know, Musk is in town, 548 00:29:04,240 --> 00:29:07,040 Speaker 3: he says, getting an award from the Italians. There's also 549 00:29:07,240 --> 00:29:09,800 Speaker 3: Sam Altman at an event with him last night, and 550 00:29:09,840 --> 00:29:13,200 Speaker 3: he's speaking with Sextrey Blinkn about regulating AI. 551 00:29:13,600 --> 00:29:15,280 Speaker 5: So while are we hearing much more about. 552 00:29:15,040 --> 00:29:17,200 Speaker 3: The discourse of governance of artificial intelligence? 553 00:29:17,920 --> 00:29:20,280 Speaker 13: That's a really big theme this week, in part because 554 00:29:20,360 --> 00:29:24,200 Speaker 13: what you've seen is Secretary General Guterris is basically saying, listen. 555 00:29:23,920 --> 00:29:27,120 Speaker 5: We are not able to make any progress. 556 00:29:26,640 --> 00:29:28,960 Speaker 13: And any of the issues that the UN was founded 557 00:29:29,000 --> 00:29:31,400 Speaker 13: to help with, so peace and security. So what we're 558 00:29:31,400 --> 00:29:33,080 Speaker 13: going to do is try to stake a claim on 559 00:29:33,160 --> 00:29:36,560 Speaker 13: issues that matter for the future, AI and climate. But 560 00:29:36,880 --> 00:29:39,440 Speaker 13: of course the big challenge there is the UN can 561 00:29:39,520 --> 00:29:42,560 Speaker 13: say what it wants. It has no enforcement mechanisms. This 562 00:29:42,680 --> 00:29:45,640 Speaker 13: will all have to come through national laws. In fact, 563 00:29:45,880 --> 00:29:47,760 Speaker 13: it was one of the big things he did last 564 00:29:47,760 --> 00:29:50,640 Speaker 13: week Guterres said, listen, we got to not use AI 565 00:29:50,760 --> 00:29:52,080 Speaker 13: in military targeting. 566 00:29:52,080 --> 00:29:53,080 Speaker 2: This is just crucial. 567 00:29:53,160 --> 00:29:56,000 Speaker 13: But all the evidence we're getting is that countries with 568 00:29:56,200 --> 00:29:59,200 Speaker 13: the ability to use AI in that way are doing 569 00:29:59,320 --> 00:30:03,240 Speaker 13: so already. You're seeing a situation where the US and 570 00:30:03,280 --> 00:30:06,560 Speaker 13: other countries is you, for example, are essentially disregarding these 571 00:30:06,680 --> 00:30:09,600 Speaker 13: UN warnings and it is still just very early days. 572 00:30:10,560 --> 00:30:13,680 Speaker 4: Nick, you've been at this a long time, respectfully in 573 00:30:13,800 --> 00:30:18,800 Speaker 4: China first and then DC. In your experience, what tangibly 574 00:30:18,880 --> 00:30:21,760 Speaker 4: comes out of these weeks? I know a lot of 575 00:30:21,880 --> 00:30:25,440 Speaker 4: tech CEOs, the meeting with world leaders, So what explains 576 00:30:25,480 --> 00:30:26,960 Speaker 4: our audience the substance of it? 577 00:30:27,280 --> 00:30:29,320 Speaker 13: Right, So, I mean, the big thing on ANGA is 578 00:30:29,360 --> 00:30:33,080 Speaker 13: you really should not focus on what's actually happening at 579 00:30:33,080 --> 00:30:35,360 Speaker 13: the UN. There are speeches, you can get a sense 580 00:30:35,400 --> 00:30:39,120 Speaker 13: of the mood, prevailing trends, things like that, But where 581 00:30:39,160 --> 00:30:41,600 Speaker 13: you really see the action is on the sidelines, the 582 00:30:41,600 --> 00:30:48,320 Speaker 13: bilateral meetings, the backroom deals, the hotel conversations. As Caroline mentioned, 583 00:30:48,400 --> 00:30:52,240 Speaker 13: Musk is here, Sam Altman is here. World leaders are 584 00:30:52,320 --> 00:30:55,160 Speaker 13: going to swing states in the US after they're at 585 00:30:55,160 --> 00:30:58,080 Speaker 13: the UN trying to sort of figure out get a 586 00:30:58,120 --> 00:30:59,960 Speaker 13: sense for the horse race of what's going to happen 587 00:31:00,400 --> 00:31:04,040 Speaker 13: in the future. So you may see some backroom conversation 588 00:31:04,240 --> 00:31:08,920 Speaker 13: around a potential Ukraine peace plan that Zelenski's putting forward, 589 00:31:09,320 --> 00:31:13,200 Speaker 13: conversations with Iran, stuff like that, But it's really not 590 00:31:13,400 --> 00:31:16,120 Speaker 13: focusing on the un but looking at the networks that 591 00:31:16,160 --> 00:31:19,160 Speaker 13: these leaders are trying to build out with tech titans 592 00:31:19,280 --> 00:31:22,040 Speaker 13: like Elon Musk and Sam Moltman. That's really where the 593 00:31:22,080 --> 00:31:22,520 Speaker 13: action is. 594 00:31:23,080 --> 00:31:26,520 Speaker 5: Remax's National Security bringing us tech. We thank you. It's 595 00:31:26,640 --> 00:31:28,000 Speaker 5: Nick Wadams coming up. 596 00:31:28,360 --> 00:31:30,720 Speaker 3: We dive into the world of AI investments with Kafaao 597 00:31:30,880 --> 00:31:33,440 Speaker 3: Safar Adventures partner And what are you looking at? 598 00:31:34,200 --> 00:31:35,800 Speaker 4: So kind of break well, what you share is at 599 00:31:35,880 --> 00:31:38,600 Speaker 4: Bank of New York Melon moving close. It's rolling out 600 00:31:38,640 --> 00:31:42,840 Speaker 4: custody services for the bitcoin ether held by ETF clients. 601 00:31:42,840 --> 00:31:46,520 Speaker 4: This after a review enabled the company to avoid treating 602 00:31:46,560 --> 00:31:49,720 Speaker 4: the assets as a balance sheet liability. 603 00:31:50,120 --> 00:31:51,800 Speaker 2: This has been by technology. 604 00:32:02,840 --> 00:32:06,040 Speaker 3: Fractal Analytics is said to be considering filing for an 605 00:32:06,080 --> 00:32:09,600 Speaker 3: IPO and as soon as November to raise five hundred 606 00:32:09,640 --> 00:32:13,160 Speaker 3: million dollars. That's, according to sources. Known as India's first 607 00:32:13,160 --> 00:32:16,240 Speaker 3: AI unicorn, The company is seeking evaluation with some three 608 00:32:16,240 --> 00:32:19,640 Speaker 3: and a half billion dollars in a share sale. Discussions 609 00:32:19,680 --> 00:32:22,200 Speaker 3: are going on at the moment and the size of 610 00:32:22,200 --> 00:32:23,960 Speaker 3: the IPO and it's timing could change. 611 00:32:24,040 --> 00:32:27,480 Speaker 4: With ed there's certainly one to track. Okay, it's time 612 00:32:27,520 --> 00:32:30,440 Speaker 4: for VC Spotlight and we will talk about investing in AI. 613 00:32:30,600 --> 00:32:35,240 Speaker 4: Sapphire Adventures announced last summer their commitment to AI by 614 00:32:35,280 --> 00:32:39,320 Speaker 4: investing more than one billion dollars in AI focused enterprise startups. 615 00:32:39,760 --> 00:32:43,240 Speaker 4: Kathy Gaoer Safire Adventures joins US. Now one billion is 616 00:32:43,280 --> 00:32:45,760 Speaker 4: a commitment. I guess the easiest place to start is 617 00:32:45,800 --> 00:32:48,400 Speaker 4: how did that go and how did you go about 618 00:32:48,440 --> 00:32:49,480 Speaker 4: deploying the capitol? 619 00:32:49,840 --> 00:32:51,640 Speaker 2: Yeah? Absolutely, First of all, great to be here. 620 00:32:51,880 --> 00:32:51,960 Speaker 4: Ed. 621 00:32:52,320 --> 00:32:55,280 Speaker 1: Sapphire Adventurers were focused on investing in B to B 622 00:32:55,400 --> 00:32:58,440 Speaker 1: companies at the mid to late stage, so we're really 623 00:32:58,480 --> 00:33:03,080 Speaker 1: looking for companies product market fit, are generating revenue and 624 00:33:03,080 --> 00:33:06,720 Speaker 1: that are proven businesses with AI. There has been so 625 00:33:06,880 --> 00:33:09,720 Speaker 1: much innovation and there's been waves of adoption. 626 00:33:09,880 --> 00:33:10,880 Speaker 2: So what we saw. 627 00:33:10,800 --> 00:33:13,400 Speaker 1: Really was in twenty twenty three it was a year 628 00:33:13,440 --> 00:33:17,360 Speaker 1: of experimentation. This year twenty twenty four was a year 629 00:33:17,400 --> 00:33:21,040 Speaker 1: of ROI validation and people actually starting to play with 630 00:33:21,080 --> 00:33:23,040 Speaker 1: these tools and getting use out of it. And we 631 00:33:23,120 --> 00:33:25,800 Speaker 1: believe that next year twenty twenty five will be the 632 00:33:26,120 --> 00:33:29,520 Speaker 1: year of widespread enterprise adoption. Now that being said, we've 633 00:33:29,560 --> 00:33:31,800 Speaker 1: been very active in twenty twenty four and have made 634 00:33:31,800 --> 00:33:33,320 Speaker 1: several AI investments already. 635 00:33:33,640 --> 00:33:36,840 Speaker 4: I sent some sort of tension out there maybe between 636 00:33:37,040 --> 00:33:40,800 Speaker 4: the bench capitalist and large tech companies that are making 637 00:33:40,880 --> 00:33:44,840 Speaker 4: very similar investments or they're developing technology themselves. And one 638 00:33:44,880 --> 00:33:48,440 Speaker 4: of your historic portfolio companies is MuleSoft. Bear with me, 639 00:33:48,560 --> 00:33:51,920 Speaker 4: but I picked that casely because ultimately Salesforce went on 640 00:33:51,960 --> 00:33:55,200 Speaker 4: to acquire mule Soft. It was an interesting exit, right, 641 00:33:55,560 --> 00:33:57,720 Speaker 4: how do you find that next kind of mule Soft 642 00:33:57,720 --> 00:33:58,520 Speaker 4: type company? 643 00:33:58,800 --> 00:34:01,440 Speaker 2: But in the AI context, I think. 644 00:34:01,480 --> 00:34:06,440 Speaker 1: This conversation is so interesting when we're talking about GENAI companies. Right, 645 00:34:06,800 --> 00:34:11,759 Speaker 1: In many ways, the incumbents, whether Salesforce, Microsoft, Amazon, you 646 00:34:11,840 --> 00:34:16,360 Speaker 1: name it, they are all actively investing in young AI 647 00:34:16,480 --> 00:34:20,399 Speaker 1: startups because you're trying to ensure that their future will 648 00:34:20,400 --> 00:34:23,759 Speaker 1: have AI in it. As an investor, what we look 649 00:34:23,840 --> 00:34:27,839 Speaker 1: for closely are companies stand alone that we think are 650 00:34:27,880 --> 00:34:31,240 Speaker 1: amazing businesses and can go all the way to IPO. 651 00:34:31,600 --> 00:34:35,520 Speaker 1: But we also consider other exit paths, including to M 652 00:34:35,560 --> 00:34:39,120 Speaker 1: and A. So we pay a lot of attention to 653 00:34:39,200 --> 00:34:42,360 Speaker 1: companies that we believe hold strategic real estate. 654 00:34:42,680 --> 00:34:44,800 Speaker 2: For many of the large tech players. 655 00:34:44,840 --> 00:34:47,840 Speaker 3: Kathy, what are the valuations like in this space that 656 00:34:47,840 --> 00:34:49,319 Speaker 3: you're trying to put money to what you say, You've 657 00:34:49,360 --> 00:34:52,400 Speaker 3: done a company of deals in twenty twenty four already, 658 00:34:52,560 --> 00:34:53,160 Speaker 3: they hih. 659 00:34:54,680 --> 00:34:58,000 Speaker 1: That's a great question, Caroline. The short answer is yes. 660 00:34:58,480 --> 00:35:01,880 Speaker 1: The reality is that AI is so consensus right now, 661 00:35:02,080 --> 00:35:05,400 Speaker 1: which arguably means it's a really difficult time to invest 662 00:35:05,480 --> 00:35:09,320 Speaker 1: because evaluations are so high. So if a perfect deal 663 00:35:09,440 --> 00:35:12,719 Speaker 1: that means a perfect valuation. I think our approach and 664 00:35:12,800 --> 00:35:15,920 Speaker 1: my approach at Sapphire is you have to take a 665 00:35:15,960 --> 00:35:20,839 Speaker 1: differentiate approach to investing. And because AI it's still in 666 00:35:20,880 --> 00:35:25,880 Speaker 1: the early stages of manifestation into different types of companies, 667 00:35:26,160 --> 00:35:29,320 Speaker 1: you have to take a leap of faith on some dimension. 668 00:35:29,760 --> 00:35:32,799 Speaker 1: So for me, for example, the leap of faith that 669 00:35:32,880 --> 00:35:35,680 Speaker 1: I'm taking, which is based again on data and research, 670 00:35:36,160 --> 00:35:41,440 Speaker 1: is that industries that have historically been technology laggards in 671 00:35:41,560 --> 00:35:46,040 Speaker 1: terms of adoption are now going to adopt technology in mass. 672 00:35:46,080 --> 00:35:49,560 Speaker 1: So two examples are a lot of different verticals right 673 00:35:49,719 --> 00:35:55,480 Speaker 1: so manufacturing, construction, healthcare, legal. These are companies and industries 674 00:35:55,480 --> 00:35:57,640 Speaker 1: that are still operating on pen and paper and on 675 00:35:57,719 --> 00:36:01,840 Speaker 1: mainframe computers. And the second one is really small businesses, 676 00:36:01,920 --> 00:36:04,640 Speaker 1: the backbone of the US. Over eighty percent of US 677 00:36:04,680 --> 00:36:09,239 Speaker 1: businesses are companies under ten people that have historically not 678 00:36:09,400 --> 00:36:12,200 Speaker 1: been able to research the latest and greatest when it 679 00:36:12,200 --> 00:36:13,120 Speaker 1: comes to technology. 680 00:36:13,239 --> 00:36:16,160 Speaker 3: I love what you said before about the validation with 681 00:36:16,320 --> 00:36:18,440 Speaker 3: Carney at the point where you have to validate the 682 00:36:18,480 --> 00:36:21,840 Speaker 3: return on investment. I don't feel like we've had that yet, 683 00:36:22,239 --> 00:36:25,560 Speaker 3: and I'm wondering whether you're seeing it in the startups 684 00:36:25,600 --> 00:36:27,279 Speaker 3: you've backed and how you're measuring it. 685 00:36:27,360 --> 00:36:32,560 Speaker 1: Kathy, that's such an on point question, Caroline, I think 686 00:36:32,640 --> 00:36:35,520 Speaker 1: we've already started that phase. I'll give you an example. 687 00:36:35,960 --> 00:36:39,360 Speaker 1: Sapphire recently backed a lease AI. I know Mino was 688 00:36:39,400 --> 00:36:41,120 Speaker 1: on the show a couple of weeks ago. That was 689 00:36:41,160 --> 00:36:44,640 Speaker 1: a Series D company. What elise AI does is owns 690 00:36:44,680 --> 00:36:48,440 Speaker 1: the entire conversation, end to end between a prospective tenant 691 00:36:48,520 --> 00:36:52,319 Speaker 1: or tenant and a residential building. A lot of their 692 00:36:52,360 --> 00:36:56,560 Speaker 1: customers are sophisticated residential real estate companies. They do a 693 00:36:56,600 --> 00:36:59,719 Speaker 1: lot of internal benchmarking. They don't just trust the lease 694 00:37:00,120 --> 00:37:03,240 Speaker 1: to show their own benchmarks, They actually do it in house, 695 00:37:03,520 --> 00:37:09,879 Speaker 1: and the data shows significant improvements in accuracy, significant improvements 696 00:37:09,920 --> 00:37:13,400 Speaker 1: and actual results, including customer satisfaction. 697 00:37:14,320 --> 00:37:17,080 Speaker 4: Some of the news of late has been open AI's 698 00:37:17,120 --> 00:37:21,560 Speaker 4: big primary at a very high valuation. Then reports about 699 00:37:21,560 --> 00:37:27,080 Speaker 4: and fropic getting itself organized, and one report I spotted 700 00:37:27,239 --> 00:37:29,560 Speaker 4: was that the minimum check for the open AI round 701 00:37:29,640 --> 00:37:32,080 Speaker 4: is an examples, two hundred and fifty million dollars. What's 702 00:37:32,120 --> 00:37:35,920 Speaker 4: the trickle down effect of that for you? 703 00:37:35,960 --> 00:37:37,360 Speaker 2: Can you explain that question a little bit? 704 00:37:37,440 --> 00:37:43,000 Speaker 4: Yeah, so everyone's clamoring to get into very small concentration 705 00:37:43,040 --> 00:37:46,640 Speaker 4: of names, including through SPVs. Does that kind of open 706 00:37:46,719 --> 00:37:49,040 Speaker 4: up the field for you to sort of have access 707 00:37:49,040 --> 00:37:52,719 Speaker 4: to more startups where people aren't paying attention or is 708 00:37:52,760 --> 00:37:54,440 Speaker 4: it just that you kind of have to say, oh, 709 00:37:54,560 --> 00:37:56,279 Speaker 4: do I need to be involved in this round even 710 00:37:56,280 --> 00:37:58,880 Speaker 4: if it's a stretch for me at growth stage? 711 00:37:59,360 --> 00:38:01,279 Speaker 1: Great question, And look, at the end of the day, 712 00:38:01,320 --> 00:38:05,399 Speaker 1: as investors, it's our jobs to allocate capital in our 713 00:38:05,480 --> 00:38:09,440 Speaker 1: fund construction, and that means thematically what we invest in. 714 00:38:09,680 --> 00:38:11,840 Speaker 1: There's always going to be great deals out there, but 715 00:38:11,920 --> 00:38:14,200 Speaker 1: we have to find the best use of our capital 716 00:38:14,239 --> 00:38:17,080 Speaker 1: based on our strategy. So I think it's a great 717 00:38:17,080 --> 00:38:20,960 Speaker 1: thing for companies like Sapphire right other investors are busy 718 00:38:21,040 --> 00:38:24,880 Speaker 1: chasing these mega deals in these ultra late stage companies, 719 00:38:25,320 --> 00:38:29,200 Speaker 1: or they're going super super early HIGHPAI companies that may 720 00:38:29,239 --> 00:38:32,879 Speaker 1: not have a lot of revenue. That leaves more greenfield 721 00:38:32,960 --> 00:38:35,920 Speaker 1: for companies like Sapphire that again are focused on that 722 00:38:36,080 --> 00:38:38,240 Speaker 1: mid to late stage company proven. 723 00:38:38,440 --> 00:38:39,880 Speaker 2: And by the way, it's not just Ai. 724 00:38:40,160 --> 00:38:44,080 Speaker 1: There's plenty of amazing companies out there that aren't Genai 725 00:38:44,200 --> 00:38:45,000 Speaker 1: native companies. 726 00:38:45,040 --> 00:38:47,719 Speaker 2: And if more investors are looking only at Ai, I say, 727 00:38:47,760 --> 00:38:48,480 Speaker 2: that's great for us. 728 00:38:48,760 --> 00:38:51,120 Speaker 5: Okay, name one that isn't to do. 729 00:38:51,160 --> 00:38:55,000 Speaker 3: With generat ai that has been exciting to be able 730 00:38:55,040 --> 00:38:57,880 Speaker 3: to get into at least analyze, you know. 731 00:38:57,920 --> 00:39:02,000 Speaker 1: I think one interesting way to play the broader Genai 732 00:39:02,360 --> 00:39:06,000 Speaker 1: strategy is to think about companies that are leveraging Genai 733 00:39:06,239 --> 00:39:07,080 Speaker 1: for themselves. 734 00:39:07,280 --> 00:39:08,320 Speaker 2: So I'll give you an example. 735 00:39:08,760 --> 00:39:13,600 Speaker 1: Metabol which is a Sapphire portfolio company, is a software 736 00:39:13,640 --> 00:39:18,400 Speaker 1: platform that allows clinical trials to be performed in a 737 00:39:18,440 --> 00:39:22,239 Speaker 1: decentralized manner. It's not a gen ai native company, but 738 00:39:22,280 --> 00:39:29,839 Speaker 1: they're actually actively using genai technology to vastly improve implementation time. 739 00:39:29,960 --> 00:39:32,960 Speaker 1: So Medical is working with the largest life sciences companies 740 00:39:32,960 --> 00:39:35,600 Speaker 1: in the world, and implementations can take a long time 741 00:39:35,640 --> 00:39:39,440 Speaker 1: because of the complexity. But now converting a thousand page 742 00:39:40,280 --> 00:39:44,400 Speaker 1: trial document in a way that is automated and someone 743 00:39:44,440 --> 00:39:46,879 Speaker 1: without technical expertise can set it up. 744 00:39:47,120 --> 00:39:48,000 Speaker 2: Is a game changer. 745 00:39:48,719 --> 00:39:53,200 Speaker 3: Kathy go aefave Inches, thanks so much for joining so much. Meanwhile, 746 00:39:53,280 --> 00:39:55,440 Speaker 3: that AI is here to say, we know that and 747 00:39:55,480 --> 00:39:58,400 Speaker 3: it can't happen without nuclear Apparently it's according to the 748 00:39:58,440 --> 00:40:02,080 Speaker 3: Constellation Energy Ceoes Dominguez, these comments coming off to the 749 00:40:02,080 --> 00:40:05,400 Speaker 3: company decided to reopen that nuclear reactor in Pennsylvania, with 750 00:40:05,480 --> 00:40:08,759 Speaker 3: Microsoft agreeing to purchase the energy for two decades in 751 00:40:08,840 --> 00:40:09,160 Speaker 3: order to. 752 00:40:09,160 --> 00:40:10,200 Speaker 5: Power the AI boom. 753 00:40:10,360 --> 00:40:13,879 Speaker 3: The Constellation CEO sat down living no Miskati Greefel yesterday's 754 00:40:13,920 --> 00:40:14,719 Speaker 3: talk about the deal. 755 00:40:14,960 --> 00:40:15,560 Speaker 5: Just take a listen. 756 00:40:16,560 --> 00:40:19,799 Speaker 14: Earlier this year we started talking to Microsoft about it. 757 00:40:20,160 --> 00:40:24,359 Speaker 14: We had partnered with Microsoft on different products before, so 758 00:40:24,840 --> 00:40:26,840 Speaker 14: they made sense as a client. Of course they have 759 00:40:26,960 --> 00:40:28,000 Speaker 14: the need, so. 760 00:40:27,920 --> 00:40:30,560 Speaker 15: The relationship was there, and of course we see the 761 00:40:30,560 --> 00:40:31,880 Speaker 15: culmination of that now. 762 00:40:32,320 --> 00:40:32,880 Speaker 5: I'm curious. 763 00:40:32,920 --> 00:40:35,239 Speaker 15: I mean, when it comes to the nuclear industry, you 764 00:40:35,320 --> 00:40:39,439 Speaker 15: have bipartisan support, you read a lot of academics and 765 00:40:40,120 --> 00:40:43,160 Speaker 15: other thought pieces that nuclear just makes so much sense, 766 00:40:43,160 --> 00:40:46,480 Speaker 15: But there's still that reputation cloud, if you want to call. 767 00:40:46,480 --> 00:40:47,319 Speaker 5: It, hanging over it. 768 00:40:47,560 --> 00:40:50,680 Speaker 15: I'm curious when you think about the industry now versus 769 00:40:50,719 --> 00:40:53,160 Speaker 15: when you were spun out of Exelon in twenty twenty two. 770 00:40:53,880 --> 00:40:55,040 Speaker 2: How has it changed. 771 00:40:55,440 --> 00:40:58,440 Speaker 14: Oh god, it feels like ten years, right, it's really 772 00:40:58,480 --> 00:41:03,239 Speaker 14: thirty one months that we've been And back then the 773 00:41:03,320 --> 00:41:06,600 Speaker 14: thought was, you know, there wasn't going to be a catalyst. 774 00:41:08,040 --> 00:41:11,400 Speaker 14: It's always one of these things where in retrospect you 775 00:41:11,440 --> 00:41:15,200 Speaker 14: think the pieces are coming together. Electrification of the transportation sector, 776 00:41:15,239 --> 00:41:19,240 Speaker 14: home heating industry. We're on shoring a lot of industry 777 00:41:19,280 --> 00:41:23,200 Speaker 14: now to deal with supply chain issues. But AI was 778 00:41:23,239 --> 00:41:26,319 Speaker 14: the thing that just really drove the load projections to 779 00:41:26,360 --> 00:41:28,759 Speaker 14: a point where you said, without nuclear it's not going 780 00:41:28,800 --> 00:41:29,160 Speaker 14: to happen. 781 00:41:29,840 --> 00:41:33,440 Speaker 3: Let us head to the Bloomberg philad the piece Earthshot Prize, 782 00:41:33,440 --> 00:41:35,480 Speaker 3: which is happening right now on the sidelines of. 783 00:41:35,400 --> 00:41:36,880 Speaker 5: The United Nations General Assembly. 784 00:41:37,160 --> 00:41:40,560 Speaker 3: Bloomberg's Alex Steel, David SASAA join us and it is 785 00:41:40,600 --> 00:41:42,799 Speaker 3: all going on at the Plaza Hotel today. 786 00:41:42,840 --> 00:41:45,920 Speaker 5: Alex, I have to. 787 00:41:45,920 --> 00:41:47,719 Speaker 16: Say, this is quite a set up here at the 788 00:41:47,719 --> 00:41:50,839 Speaker 16: Earthshot Summit at the Plaza Hotel. This is sponsored, as 789 00:41:50,840 --> 00:41:53,279 Speaker 16: you mentioned, a co hosted by Bloomberg Philanthropy's, but the 790 00:41:53,360 --> 00:41:57,160 Speaker 16: whole goal is about trailbasing solutions and innovators to help 791 00:41:57,200 --> 00:41:59,640 Speaker 16: our planet. And later on today there's also going to 792 00:41:59,680 --> 00:42:02,440 Speaker 16: be the Goal Business Forum, where you have Bloomberg Philanthropy's 793 00:42:02,440 --> 00:42:04,800 Speaker 16: teaming up with the World Bank and the IMF to 794 00:42:04,880 --> 00:42:06,719 Speaker 16: kind of go through some of the big topics of 795 00:42:06,760 --> 00:42:09,120 Speaker 16: our time, and in that is most definitely. 796 00:42:08,880 --> 00:42:11,279 Speaker 5: Going to be AI and how to globally regulate that. 797 00:42:11,320 --> 00:42:14,440 Speaker 16: We heard from President Biden earlier at the UN talking 798 00:42:14,480 --> 00:42:18,359 Speaker 16: about the AI security and how to help that conversation 799 00:42:18,600 --> 00:42:21,480 Speaker 16: on a global level and rupport. We'll be speaking with 800 00:42:21,600 --> 00:42:24,799 Speaker 16: Eric Shaftsper later on today, the President and CIO over 801 00:42:24,920 --> 00:42:27,960 Speaker 16: at Google, and Damien just kind of got stuck in here, yeah, radio, 802 00:42:28,080 --> 00:42:29,239 Speaker 16: but he kind of dug it. 803 00:42:29,280 --> 00:42:29,920 Speaker 5: He was into it. 804 00:42:30,000 --> 00:42:32,520 Speaker 17: Central Bank's ambassadors, heads of state. I mean, it's all 805 00:42:32,520 --> 00:42:34,600 Speaker 17: happening here. And what's interesting is we're talking to people 806 00:42:34,600 --> 00:42:36,920 Speaker 17: like the European Investment Bank, We're talking to the Monetary 807 00:42:36,960 --> 00:42:39,839 Speaker 17: Authority of Singapore. We're getting a sense of how they're 808 00:42:39,880 --> 00:42:45,239 Speaker 17: financing sustainable development, how they're financing climate change solutions. And 809 00:42:45,280 --> 00:42:47,560 Speaker 17: it's really an unbelievable vibe here. Alex I'm just happy 810 00:42:47,600 --> 00:42:47,960 Speaker 17: to be here. 811 00:42:48,000 --> 00:42:50,400 Speaker 16: Yeah, and everyone's really positive. Obviously, Guys in terms of 812 00:42:50,400 --> 00:42:53,160 Speaker 16: the financing and the technology, but the real information kind 813 00:42:53,160 --> 00:42:55,359 Speaker 16: of comes down on the ground, like can companies really 814 00:42:55,360 --> 00:42:57,759 Speaker 16: make a return when they go green? And where and 815 00:42:57,840 --> 00:43:00,160 Speaker 16: how did they do it? And what that long her 816 00:43:00,160 --> 00:43:02,080 Speaker 16: from outlook w ends up being guys. 817 00:43:02,239 --> 00:43:05,880 Speaker 3: Money Talks, Bloomberg Z, Alex Steele, Damien Sasa loving the 818 00:43:06,000 --> 00:43:09,319 Speaker 3: energy down there, Thank you so much. Meanwhile, that does 819 00:43:09,360 --> 00:43:12,000 Speaker 3: it for this edition of Bloomberg Technology. Clearly some key 820 00:43:12,000 --> 00:43:13,600 Speaker 3: conversations still coming up later today. 821 00:43:13,760 --> 00:43:13,840 Speaker 7: Ed. 822 00:43:14,480 --> 00:43:16,600 Speaker 4: Yeah, don't forget to recap on the podcast. You can 823 00:43:16,640 --> 00:43:19,480 Speaker 4: find it on the terminal as well as online on Apples, Spotify, 824 00:43:19,760 --> 00:43:25,640 Speaker 4: and iHeart. This is Bloomberg Technology.