WEBVTT - Nvidia Surges and Coinbase Launches Blockchain 0:00:14.080 --> 0:00:17.360 I'm Caroline Hyde in New York from Bloomberg's world headquarters, 0:00:17.680 --> 0:00:20.880 and I'med Ludlow in San Francisco. This is Bloomberg Technology 0:00:20.960 --> 0:00:23.520 in video. It surges, shares climb as much as fifteen 0:00:23.560 --> 0:00:27.280 percent after the AI computing push, Trouvietz strong outlook. We'll 0:00:27.320 --> 0:00:30.800 chip away and the details and we'll have the latest 0:00:30.840 --> 0:00:32.920 in the world of crypto is sam Bank. Then Freed 0:00:32.960 --> 0:00:36.760 faces new charges and coin Base launches a blockchain. We'll 0:00:36.760 --> 0:00:40.240 discuss with Chris Lahane of Horn Ventures. Class Gorman Sacks 0:00:40.280 --> 0:00:44.400 offering its wealthiest clients access to a fundraising round for Stripe. 0:00:44.640 --> 0:00:46.840 That's as the payment's giant seeks to raise four billion 0:00:46.880 --> 0:00:50.080 dollars from a wide range of investors. The best performer 0:00:50.120 --> 0:00:52.360 in the SMP five hundred and as that one hundred 0:00:52.520 --> 0:00:55.640 in video shares surging essentially because they give a strong 0:00:55.680 --> 0:00:58.800 outlook for revenue. That kind of indicated to investors that 0:00:58.920 --> 0:01:02.600 they're foura into artificial intelligence is helping boost them at 0:01:02.600 --> 0:01:05.440 a time where PC demand is slowing and data center 0:01:05.520 --> 0:01:08.039 demand slowing as well. Shares up forwarding percent, the biggest 0:01:08.120 --> 0:01:11.440 jump since November. At one point up by even more 0:01:11.480 --> 0:01:13.759 than that in the biggest jump since March of twenty twenty, 0:01:13.800 --> 0:01:15.200 and I want to stick with this story and get 0:01:15.240 --> 0:01:18.360 the investor perspective. Joining us now for more over is 0:01:18.440 --> 0:01:23.360 Jonathan Curtis, Franklin Equity Group, Director of Portfolio Management, Franklin 0:01:23.400 --> 0:01:25.800 Equity Group. Nearly one hundred and twenty billion dollars of 0:01:25.800 --> 0:01:28.559 assets under management of Jonathan. You hold in video stock 0:01:28.880 --> 0:01:32.480 in your funds? Is this chart on my screen? Is 0:01:32.520 --> 0:01:37.680 this equity response justified? Is the height justified around this name? Well, 0:01:37.720 --> 0:01:40.640 certainly Nvidios had a strong movie or to date here, 0:01:40.680 --> 0:01:44.480 but certainly we think that the opportunity for artificial intelligence 0:01:44.920 --> 0:01:47.560 is really just beginning in Nvidia said it's in a 0:01:47.680 --> 0:01:50.280 very very strong position to capitalize on some of the 0:01:50.320 --> 0:01:53.160 recent break views we've had with computers being able to 0:01:53.200 --> 0:01:58.040 actually understand and generate both speech and an image content 0:01:58.120 --> 0:02:00.600 now an Nvidia's right in the center of that. We 0:02:00.680 --> 0:02:03.760 think that today's move was certainly exciting, but when you 0:02:03.760 --> 0:02:07.440 look over the long term, Nvidia offers really solid return 0:02:07.480 --> 0:02:11.600 potential floor investors. Jonathan talk us through how they are 0:02:11.600 --> 0:02:16.320 so best placed to leverage artificial intelligence. Sure, so, Nvidia 0:02:16.480 --> 0:02:21.160 makes graphics processors which have at their core the ability 0:02:21.200 --> 0:02:24.240 to do vector math, which is right at the center 0:02:24.480 --> 0:02:29.280 of how a lot of these artificial intelligence models operate. 0:02:30.160 --> 0:02:33.560 The chat GPT three and a half has more than 0:02:33.560 --> 0:02:36.600 one hundred and seventy billion parameters in that model, and 0:02:36.880 --> 0:02:41.760 NVIDIAs processors are great at building up the models that 0:02:41.880 --> 0:02:44.840 understand language and then ultimately allow it to be reproduced. 0:02:45.480 --> 0:02:49.760 Similar technologies or techniques are used in generating images, and 0:02:49.919 --> 0:02:52.040 NVIDIAs in the pole position for that. Not only were 0:02:52.080 --> 0:02:54.880 the semiconductors they build, but then the software that they 0:02:54.919 --> 0:02:57.959 build that really helps to augment and accelerate the usage 0:02:58.000 --> 0:03:01.480 of their processors. But Invidios the only player in this category, 0:03:01.520 --> 0:03:03.800 there are a lot of other players in this category 0:03:03.840 --> 0:03:07.280 that we also own and are also very exciting in 0:03:07.280 --> 0:03:10.280 that case, Jonathan, is in Vidia the best position name 0:03:10.360 --> 0:03:13.200 that you're tracking or is there another in particular that 0:03:13.240 --> 0:03:16.200 you're excited about that you think actually can grow a 0:03:16.280 --> 0:03:19.720 business around the momentum and AI? Yeah, well so, certainly 0:03:19.800 --> 0:03:22.880 in Vidia is the one that is best position. About 0:03:22.880 --> 0:03:25.200 a third of their revenue, it's gonna be fifty percent 0:03:25.240 --> 0:03:27.399 of their revenue, Almost sixty percent of their revenue comes 0:03:27.400 --> 0:03:29.880 out of the data center and a large portion of 0:03:29.919 --> 0:03:33.200 that comes out of cloud service providers, and a lot 0:03:33.200 --> 0:03:34.639 of the growth that we think is going to come 0:03:34.639 --> 0:03:36.840 in the years ahead is going to come on AI 0:03:36.920 --> 0:03:39.400 in the building of these large language models. That said, 0:03:39.760 --> 0:03:42.280 there are other players in the semiconductor ecosystem that are 0:03:42.320 --> 0:03:46.160 also well positioned. AMD with its zilings acquisition a latt 0:03:46.160 --> 0:03:48.960 of semiconductor certainly a TSMC where a lot of these 0:03:48.960 --> 0:03:55.360 advantage chips are manufactured. Then in electronic design automation the 0:03:55.400 --> 0:03:58.680 building of new chips, companies like Synopsis and Cadence are 0:03:58.760 --> 0:04:02.080 very well positioned. The cloud providers are also extremely well 0:04:02.120 --> 0:04:04.040 positioned because that's where a lot of the building and 0:04:04.160 --> 0:04:06.640 the running of these models is going to occur. So 0:04:06.680 --> 0:04:08.760 there's a many ways to play this. In video is 0:04:08.800 --> 0:04:14.280 probably the best position in the semi space, though, Jonathan 0:04:14.880 --> 0:04:18.440 across Franklin's different funds and portfolios, I think you hold 0:04:18.520 --> 0:04:21.360 zero point five percent of Nvidia, so a serious stakeholder, 0:04:21.720 --> 0:04:24.920 and there's always hype around this company. I remember they 0:04:24.960 --> 0:04:26.800 were going to be big in crypto because of all 0:04:26.839 --> 0:04:29.240 the compute that was needed for mining. They've going to 0:04:29.279 --> 0:04:32.599 be big in previous cycles and trends. Why are you 0:04:32.600 --> 0:04:35.440 so convinced that this time around, with what we're seeing 0:04:35.440 --> 0:04:38.600 in AI, it is in Nvidia that's right to take 0:04:38.920 --> 0:04:42.320 on what's available in the market. Well, I think investors 0:04:42.320 --> 0:04:45.040 were right to bed own and Video over a long term. 0:04:45.080 --> 0:04:47.240 They've done very very well. With the rise of gaming, 0:04:47.600 --> 0:04:49.880 they've done very very well, and the rise of the 0:04:50.400 --> 0:04:53.440 cloud and now AI is a big opportunity. I think 0:04:53.440 --> 0:04:57.040 they're very well positioned because of the combination of their 0:04:57.120 --> 0:05:00.960 capabilities in semiconductors and a software they wrap around it. 0:05:01.320 --> 0:05:03.720 But there are many other companies that are going to 0:05:03.760 --> 0:05:05.800 do well here. But I think the bigger idea is this, 0:05:06.320 --> 0:05:08.840 if you, as a knowledge worker had the ability to 0:05:08.880 --> 0:05:11.800 have a partner sitting alongside of you, helping you in 0:05:11.839 --> 0:05:14.320 your day to day work and being creative, of course 0:05:14.320 --> 0:05:17.520 you would take that. And that is precisely what companies 0:05:17.560 --> 0:05:21.320 like Nvidia and these large language models and generative AI 0:05:21.480 --> 0:05:24.400 businesses are going to be enabling. They're going to allow 0:05:24.800 --> 0:05:27.640 knowledge workers to be dramatically more productive. We've just met 0:05:27.720 --> 0:05:31.760 last week with Sachi Adella Microsoft and he indicated that 0:05:31.800 --> 0:05:35.279 the product that he was most proud of was the 0:05:35.320 --> 0:05:39.680 GitHub Copilot offering that allows software developers to generate nearly 0:05:39.720 --> 0:05:42.560 half of the code they are writing now with a 0:05:42.600 --> 0:05:45.960 copilot model, we think that same type of power is 0:05:46.000 --> 0:05:49.440 coming to the general knowledge worker that has to work 0:05:49.480 --> 0:05:54.000 across hundreds of emails every day, many many documents every day, 0:05:54.400 --> 0:05:57.839 ultimately empowering knowledge workers to be dramatically more productive. I 0:05:57.839 --> 0:06:00.400 think enterprises are going to pay for that, and if 0:06:00.400 --> 0:06:02.360 they don't, they're going to fall behind. And then all 0:06:02.440 --> 0:06:05.640 leads back to the infrastructure vendors like an video there 0:06:05.640 --> 0:06:08.800 are going to enable that they're painting a vision and 0:06:08.920 --> 0:06:13.880 total addressable market that's enormous, I'm sure, Jonathan Franklin Equity Groups. 0:06:13.920 --> 0:06:16.279 So great to have some time with you really to 0:06:16.400 --> 0:06:18.960 discuss all of this. And we do have some breaking 0:06:18.960 --> 0:06:21.520 news at the moment regarding one is once again some 0:06:21.600 --> 0:06:24.360 news around the DOJ preparing a suit to block Adobe's 0:06:24.360 --> 0:06:28.560 twenty billion dollar deal for Figma, now notable acquisition one 0:06:28.640 --> 0:06:31.800 that many an investor was questioning the absolute valuation that 0:06:31.800 --> 0:06:34.920 this company was parting with four Figma. We understand that 0:06:34.960 --> 0:06:37.479 the antitrust lawsuit could be filed as soon as next month, 0:06:37.800 --> 0:06:39.560 and we know it's one of the biggest takeovers of 0:06:39.560 --> 0:06:43.359 a software startup out there. Really, this comes at a 0:06:43.400 --> 0:06:46.280 time that we see more and more discussion of M 0:06:46.360 --> 0:06:49.360 and A within technology. Of course, the focus on Microsoft's 0:06:49.360 --> 0:06:52.799 deal of acquisition of Activision Blizzard at sixty nine billion 0:06:52.839 --> 0:06:57.880 dollar deal really the US administration ramping up oversight. Yeah, 0:06:57.880 --> 0:06:59.440 and every time we see a big piece of M 0:06:59.480 --> 0:07:01.080 and A and it does happen, this is the first 0:07:01.160 --> 0:07:04.200 question we ask. We're surprised to see it. In Adobe's case, 0:07:04.200 --> 0:07:06.600 there's questions about why they would do this deal based 0:07:06.640 --> 0:07:09.720 on their business fundamentals, but you know clearly the regulators 0:07:09.760 --> 0:07:20.880 coming in and we thought that might happen. There's a 0:07:20.880 --> 0:07:23.160 lot of exciting things going on, but there's a lot 0:07:23.200 --> 0:07:27.560 of reason for us to be concerned. People want regulation 0:07:27.640 --> 0:07:30.080 for AI. They want to feel safe. We think about 0:07:30.160 --> 0:07:33.760 artificial intelligence as this kind of separate consciousness that is 0:07:33.800 --> 0:07:36.400 going to emerge as this thing of science fiction. The 0:07:36.440 --> 0:07:39.320 fact that they have this machine speaking with the first 0:07:39.360 --> 0:07:42.600 person is problematic because that really encourages people to see 0:07:42.600 --> 0:07:45.360 it as an entity, as a mind, when it's not 0:07:45.720 --> 0:07:49.840 like any technology. It definitely has its limitation. So we 0:07:49.960 --> 0:07:53.920 actually liked anything that you implement, we know its limitations. 0:07:54.080 --> 0:07:57.560 We've seen the move fast and break things attitude before. 0:07:57.920 --> 0:08:00.720 We have to get governments to think about how best 0:08:00.720 --> 0:08:05.400 to regulate this new, very fast emerging industry. I think 0:08:05.440 --> 0:08:07.520 that that chatbuts are not what we need for search. 0:08:07.720 --> 0:08:12.600 It could be helpful, it could help human flourishing. These 0:08:12.640 --> 0:08:15.679 were just some of our recent guests expressing their concerns 0:08:15.680 --> 0:08:18.920 around the rapid rise of generative AI, from ethical concerns 0:08:18.920 --> 0:08:23.000 to regulatory ones. There's another one cybersecurity concerns. And in fact, 0:08:23.000 --> 0:08:26.080 of course JP Morgan just restricted its staff use of 0:08:26.200 --> 0:08:29.240 chat chypt. They say it's part of normal controls around 0:08:29.280 --> 0:08:32.760 third party software. So just what are the vulnerabilities that 0:08:32.840 --> 0:08:37.240 perhaps artificial intelligence injects? Got the perfect guest, francois Local Donu, 0:08:37.559 --> 0:08:39.800 his president, CEO and member of the board of directors 0:08:39.800 --> 0:08:43.120 over at cybersecurity company F five, with a pretty fantastic 0:08:43.120 --> 0:08:46.360 backdrop as well. Francois, welcome to the show. And just 0:08:46.640 --> 0:08:51.680 when it comes to your expertise of cybersecurity, does artificial intelligence, 0:08:51.720 --> 0:08:56.920 particularly generative AI, what sort of risks does it induce? Well, 0:08:56.920 --> 0:09:00.160 thank you for having me. There are a number of 0:09:00.200 --> 0:09:03.839 no risks that happened with generative AIM. But if we 0:09:04.240 --> 0:09:06.440 step back a little bit, what we've seen over the 0:09:06.520 --> 0:09:10.240 last you know, several years, is the number of cyber 0:09:10.280 --> 0:09:14.120 attacks on companies and applications have increased dramatically, to the 0:09:14.200 --> 0:09:17.600 point where cyber attacks are costing you know, roughly six 0:09:17.640 --> 0:09:20.320 trillion dollars a year around the globe. Part of the 0:09:20.360 --> 0:09:23.160 reason for that is that as we move from the 0:09:23.240 --> 0:09:28.480 early stages of web experience to more digital, advanced digital, 0:09:28.520 --> 0:09:32.839 and dynamic experiences that we're all enjoying today, security in 0:09:32.880 --> 0:09:36.240 all of that movement was an afterthought, and so the 0:09:36.360 --> 0:09:39.560 attack surface for attackers increased and they were able to 0:09:39.640 --> 0:09:43.800 increasingly attack applications and monetize those attacks. Well, now we 0:09:43.840 --> 0:09:47.680 are at another inflection point where you know, generative AI 0:09:48.000 --> 0:09:50.840 is going to be an accelerator for humans, both for 0:09:50.920 --> 0:09:54.240 bad humans and for good humans, and we really have 0:09:54.360 --> 0:09:57.120 to make sure that security is not an afterthought and 0:09:57.160 --> 0:10:01.320 that organizations prepare themselves upfront for the new risks that 0:10:01.440 --> 0:10:06.040 come with that acceleration. Those new risks include, of course, 0:10:06.320 --> 0:10:10.360 you know, attackers being able to impersonate chat bots to 0:10:10.400 --> 0:10:13.640 take your personal information, or you know, being able to 0:10:13.679 --> 0:10:18.479 write scripts much faster that attack vulnerabilities in existing applications, 0:10:18.679 --> 0:10:21.680 and today most organizations are not prepared for that. Okay, 0:10:21.679 --> 0:10:24.800 so let's talk about hardness. We can all update our 0:10:25.840 --> 0:10:28.439 the way in which we train ourselves to avoid phishing emails. 0:10:28.440 --> 0:10:30.760 We can all understand them, phaps, the spelling mistakes aren't 0:10:30.760 --> 0:10:32.240 going to be there anymore. But front, well, what are 0:10:32.320 --> 0:10:36.040 you now training companies to look out for? We're training 0:10:36.040 --> 0:10:39.320 so first of all, we're asking companies to take the 0:10:39.400 --> 0:10:42.520 threats seriously. What I think we've seen in the past 0:10:42.640 --> 0:10:47.240 is that oftentimes which we underestimate the sophistication of attackers. 0:10:47.720 --> 0:10:50.520 And because of that, you know, we use half hazard 0:10:50.559 --> 0:10:53.000 tools or try to just put a team of engineers 0:10:53.000 --> 0:10:55.760 in a room to try and deal with the attackers. 0:10:55.800 --> 0:10:58.880 But they are now organized, they have access to a 0:10:58.880 --> 0:11:02.120 lot of tools, and this generality I is doing to 0:11:02.240 --> 0:11:07.320 make very sophisticate and fine tuned attacks available to frankly 0:11:07.360 --> 0:11:10.760 the least sophisticated attackers. So we're asking companies to get 0:11:10.760 --> 0:11:15.040 prepared to enhance their monitoring of their applications and the 0:11:15.160 --> 0:11:19.480 scanning of their codes and vulnerabilities. We're asking companies to 0:11:19.520 --> 0:11:23.400 train their users constantly. You just mentioned phishing emails. Phishing 0:11:23.440 --> 0:11:26.960 emails are getting are going to get way more sophisticated 0:11:27.000 --> 0:11:29.760 and harder to detect, and it requires training of users 0:11:29.760 --> 0:11:33.640 on a very regular basis. Frans Far, a month ago 0:11:34.040 --> 0:11:38.800 when you reported earnings, he talked about your customers slowing 0:11:38.880 --> 0:11:41.040 down in terms of renewals. There was a little bit 0:11:41.080 --> 0:11:44.240 worry about the outlook. You think about the hype cycle 0:11:44.360 --> 0:11:48.000 around AI. Has your situation changed in the last four 0:11:48.000 --> 0:11:51.080 weeks in other words, are your customers actually becoming more 0:11:51.120 --> 0:11:55.880 alive to these AI related risks and therefore engaging with 0:11:55.960 --> 0:12:00.400 you about doing more work with your platforms in the 0:12:00.520 --> 0:12:05.360 area of security. And we're we're seeing our customers are 0:12:05.440 --> 0:12:07.840 engaging with us on that. Just to give you a 0:12:07.840 --> 0:12:13.320 sense and around it. You know, today we protect over 0:12:13.400 --> 0:12:17.760 two billion fraudulent logins into applications every single day, and 0:12:17.840 --> 0:12:21.200 we protect over four and a half billion transactions web 0:12:21.240 --> 0:12:25.160 transactions every single day with our large enterprise customers. And 0:12:25.200 --> 0:12:28.160 the way we do that is by leveraging AI to 0:12:28.400 --> 0:12:32.920 stop sophisticated and automated attacks. And we're seeing our customers, 0:12:33.040 --> 0:12:37.800 of course have a strong interest in these solutions. And 0:12:37.880 --> 0:12:40.040 over the last four weeks we have continued to see 0:12:40.080 --> 0:12:44.240 that happened. Friends, how we just have thirty seconds, but 0:12:44.360 --> 0:12:47.520 what is your technological assessment of what the likes of 0:12:47.559 --> 0:12:50.080 open ai are doing. Do you see them as a 0:12:50.120 --> 0:12:55.800 long term threat to your business? No, Actually, I think 0:12:56.080 --> 0:12:59.560 open ai is going to be enabler for my business 0:12:59.679 --> 0:13:02.280 and the businesses because there's a lot of fantastic things 0:13:02.320 --> 0:13:05.840 that it can do and allow us to move our 0:13:05.880 --> 0:13:11.520 people to other tasks that perhaps are repetitive today. So 0:13:11.760 --> 0:13:14.080 I see it pm mearly as an enabler of our business, 0:13:14.200 --> 0:13:16.280 but I also see it as a threat to all 0:13:16.360 --> 0:13:19.880 companies around the world around securing their digital experiences, and 0:13:20.000 --> 0:13:21.959 that's why we're going to continue to invest in AI 0:13:23.080 --> 0:13:27.840 to help our customers. Francois local Do New five President 0:13:27.880 --> 0:13:31.160 and CEO. Thank you very much, Caroline. Great conversation. I mean, 0:13:31.200 --> 0:13:33.000 actually ed if you take a look a little bit 0:13:33.000 --> 0:13:35.880 more at Generative AI over in China, the rally in 0:13:36.000 --> 0:13:39.040 Chinese AI stocks, they're actually kind of cooling off of late. 0:13:39.120 --> 0:13:42.120 That's after some media started reporting that local apps and 0:13:42.240 --> 0:13:45.720 local websites have been ordered to terminate services that allow 0:13:45.800 --> 0:13:49.000 you so chat GBT now. Open ais chatbot isn't officially 0:13:49.040 --> 0:13:53.920 available in China, but has been accessible via virtual private networks. 0:13:54.679 --> 0:13:57.920 Coming up. Goalman it's offering clients a special way to 0:13:57.960 --> 0:14:02.120 invest in Unicorn Stripe or bringing the details. Next, this 0:14:02.280 --> 0:14:14.880 is Blomberg. Oh, everyone was reading about it today. Goldman 0:14:14.920 --> 0:14:18.600 Sachs offering its wealthiest customers access to a fundraising round 0:14:18.640 --> 0:14:21.360 for the payment's Giant Stripe and the bank will set 0:14:21.440 --> 0:14:25.000 up a special purpose vehicle for private wealth clients to 0:14:25.120 --> 0:14:27.440 invest in the company as it seeks to raise four 0:14:27.520 --> 0:14:30.960 billion dollars for more. Let's bringing Blomberg straight out, Nadarajan, 0:14:31.040 --> 0:14:33.960 and you're one of the key components of breaking this story. 0:14:34.920 --> 0:14:37.080 Remind us why they need the money. It's kind of 0:14:37.160 --> 0:14:40.120 rather arduous around tax. Yeah, I mean, there are a 0:14:40.200 --> 0:14:42.440 lot of longstanding employees at the film. They want to 0:14:42.480 --> 0:14:44.840 cash out their restricted stock units, and part of that 0:14:45.120 --> 0:14:48.280 move will involve a looming tax bill, and that is, 0:14:48.440 --> 0:14:50.840 in effect one of the reasons why they are raising 0:14:50.880 --> 0:14:53.320 this much. They are trying to raise about four billion dollars, 0:14:53.360 --> 0:14:56.560 which is a pretty high sum. But again, we're talking 0:14:56.600 --> 0:14:59.320 about a company that went from a valuation one hundred 0:14:59.360 --> 0:15:02.200 million just to decade ago to almost one hundred billion 0:15:02.240 --> 0:15:05.120 dollars in twenty twenty one. It has come down significantly. 0:15:05.200 --> 0:15:07.680 We're talking about around where they could be valued at 0:15:07.720 --> 0:15:09.880 fifty five billion dollars. But if you think about that, 0:15:09.880 --> 0:15:11.440 I think about the fact that we're talking about a 0:15:11.520 --> 0:15:16.080 fintech firm that is in the position to report positive 0:15:16.240 --> 0:15:19.600 free cash flow. That makes it an exciting name. And 0:15:19.720 --> 0:15:22.560 when the valuation has come down this much, you can 0:15:22.680 --> 0:15:26.040 be guaranteed the lot of wealthy clients, a lot of 0:15:26.080 --> 0:15:29.240 big institutional investors would want to poke around and see 0:15:29.360 --> 0:15:32.280 if this is the right time to jump in, particularly 0:15:32.320 --> 0:15:34.680 as everyone's still talking about certain list of names that 0:15:34.760 --> 0:15:37.520 could co public as and when the markets reopen, valuations 0:15:37.600 --> 0:15:40.200 become boy in a little bit more. Just just talk 0:15:40.240 --> 0:15:42.360 to us a little bit about how it could be structured. 0:15:42.440 --> 0:15:44.600 What It's not just Goldman in on the deal, right, No, 0:15:44.920 --> 0:15:47.120 So Goldman and JP Morgan are the two banks of 0:15:47.240 --> 0:15:49.640 being mandated. Were trying to raise this money, and they're 0:15:49.680 --> 0:15:52.760 going to a wide swath of investors that includes you know, 0:15:53.040 --> 0:15:56.360 big names and finance and the tech world VC firms. 0:15:56.720 --> 0:15:59.960 There is a quite a big spectrum that they've gone 0:16:00.120 --> 0:16:03.040 now too. But equally important and what we found interesting 0:16:03.280 --> 0:16:06.160 was Goldman Sacks, for instance, opening it up to their 0:16:06.240 --> 0:16:09.760 high net worth clients Previously The biggest draw if you're 0:16:09.800 --> 0:16:11.600 a client in one of these banks was we can 0:16:11.640 --> 0:16:14.200 bring you in closer to the IPO. Now with private 0:16:14.360 --> 0:16:18.040 companies wanting to say private for longer, this is a 0:16:18.080 --> 0:16:20.920 way to augment your offerings. Goldman can go out there 0:16:20.920 --> 0:16:23.320 and say, let's create a special vehicle where all of 0:16:23.360 --> 0:16:25.400 you can pull in your cash and we will write 0:16:25.440 --> 0:16:27.480 one big check and hand it over to Stripe. Why 0:16:27.520 --> 0:16:30.360 would you not want to take that opportunity? Remind us 0:16:30.440 --> 0:16:32.560 when this has been done before, because it's sort of 0:16:32.600 --> 0:16:35.680 got echoes of what happened with the right. The Uber 0:16:35.880 --> 0:16:37.440 is one example that comes to mind that was a 0:16:37.480 --> 0:16:39.960 big deal. It was in twenty fifteen Goldman Sacks to 0:16:40.000 --> 0:16:42.640 the one point six one point seven billion dollars convertible 0:16:43.000 --> 0:16:45.600 note deal. At that time, that was driven by their 0:16:45.680 --> 0:16:48.600 high networth clients. But equally important, even if you look 0:16:48.640 --> 0:16:51.520 at recent examples, when a big venture capital firm like 0:16:51.640 --> 0:16:55.080 Tiger Global wants to raise a new fund, banks see 0:16:55.080 --> 0:16:59.920 an opportunity to create vehicles and go to their rich clients, 0:17:00.200 --> 0:17:01.960 you know, people who are worth more than twenty five 0:17:01.960 --> 0:17:04.560 million dollars perhaps and telling them that this is a 0:17:04.640 --> 0:17:06.240 way for you to get in on a big name, 0:17:06.400 --> 0:17:09.360 which in the bus was only available to institutional investors. 0:17:10.280 --> 0:17:13.199 Interesting the way in which people still want diversification. Street up, 0:17:13.400 --> 0:17:16.800 great reporting me. Thank you Sharjan there, and you got 0:17:16.840 --> 0:17:19.640 some time for talking to tech. Yeah, thank you time 0:17:19.680 --> 0:17:22.400 now indeed for talking tech. Let's go over to Europe, 0:17:22.440 --> 0:17:26.960 where the European Commission suspended staff from using TikTok over 0:17:27.040 --> 0:17:31.639 security concerns related to the social media apps data collection practices. 0:17:31.680 --> 0:17:34.080 Staff were ordered to delete the app from mobile phones 0:17:34.480 --> 0:17:38.879 and corporate devices, which includes personal devices that use Commission apps. 0:17:39.119 --> 0:17:42.080 That's according to a spokesperson. The move comes among growing 0:17:42.160 --> 0:17:44.959 scrucity both here in the US but also in Europe 0:17:45.160 --> 0:17:49.080 over the apps potential national security risks. In China, Ant 0:17:49.119 --> 0:17:52.640 Group's profit fell eighty three percent after China's regulatory crackdown 0:17:52.800 --> 0:17:56.440 and a drop in valuation for overseas equity investments. Still 0:17:56.640 --> 0:17:59.200 A contributed a billion one or one hundred and forty 0:17:59.240 --> 0:18:01.920 five million dollars to its pair in Ali Barber, whose 0:18:02.000 --> 0:18:05.399 own profit jumped sixty nine percent after the e commerce 0:18:05.440 --> 0:18:08.879 giant reigned in its spending and narrowed losses abroad to 0:18:08.960 --> 0:18:11.119 make up for, of course, anemic growth because of COVID 0:18:11.200 --> 0:18:14.680 nineteen and benefiting also from reduced spending is Grab, which 0:18:14.720 --> 0:18:19.280 brought its profitability target forward after posting a narrower quarterly loss. 0:18:19.320 --> 0:18:22.959 The food delivery provider among money losing Southeast Asian internet 0:18:23.000 --> 0:18:26.920 giants to have shifted strategies to focus on achieving profitability 0:18:27.200 --> 0:18:32.080 instead of spending on growth. Caroline great global round up there, 0:18:32.160 --> 0:18:34.240 and now let's get you back to the US. Let's 0:18:34.280 --> 0:18:36.040 get you to a stop to watch after hours because 0:18:36.040 --> 0:18:38.119 it's Block of course, the artists formerly known as Square, 0:18:38.359 --> 0:18:41.359 they've currently been for some fluctuation, but we're now decidedly higher, 0:18:41.400 --> 0:18:43.400 up six and a half percent. After hours look grows. 0:18:43.440 --> 0:18:45.800 Payment volumes did climb fifteen percent year on year. It 0:18:45.840 --> 0:18:48.320 was slightly blow expectations, but net revenue looks solid up 0:18:48.359 --> 0:18:52.440 fourteen percent, and particularly are seeing sort of record setting 0:18:52.800 --> 0:18:55.240 revenue for the fourth quarter and the full year when 0:18:55.240 --> 0:18:58.960 it comes to subscriptions and services. They're also posting towards 0:18:58.960 --> 0:19:02.840 twenty twenty three guidance that were slightly ahead of expectations, 0:19:02.920 --> 0:19:05.560 so they're in the payment side of things ed, it 0:19:05.720 --> 0:19:07.480 looks as though we got a bit of a solid beat. 0:19:07.520 --> 0:19:10.200 It was interesting also the bitcoin side of the equation 0:19:10.359 --> 0:19:14.240 also looking relatively solid. It's interesting the pledge from block 0:19:14.359 --> 0:19:16.840 is efficiency. Right in other ways, they're reigning and spending, 0:19:16.880 --> 0:19:19.480 and after what we saw from a firm PayPal, other 0:19:19.560 --> 0:19:21.680 thin tech players, that's kind of been the theme of 0:19:21.760 --> 0:19:24.800 this earning season. As volumes drop, then you need to 0:19:24.880 --> 0:19:27.240 tighten the belt a little. I think that's the play. Yeah, 0:19:27.280 --> 0:19:29.200 it was notable that they're really trying to get costs 0:19:29.280 --> 0:19:32.399 under control. We note how wasn't that much an illustrative 0:19:32.440 --> 0:19:34.200 of how they're going to be doing that, but people 0:19:34.240 --> 0:19:36.359 sort of noted that the number was below where they 0:19:36.400 --> 0:19:39.520 had thought. And yeah, as you say, tightening your belt particularly, 0:19:39.600 --> 0:19:41.960 keep on selling out there and continuing to try and 0:19:42.160 --> 0:19:44.640 find some expansion bitcoin revenue. As I said, we're down 0:19:44.680 --> 0:19:47.400 six and a half percent year on year, but overall 0:19:47.560 --> 0:19:59.600 it was ahead of expectations. Welcome back to blobog Technology. 0:19:59.600 --> 0:20:02.159 I can and heard in New York and Almed Ludlow 0:20:02.200 --> 0:20:03.720 in San Francisco. We're going to get back to that 0:20:03.840 --> 0:20:06.440 breaking Adobe news. Caroline shares down around four and a 0:20:06.480 --> 0:20:09.600 half percent in after hours after Bloomberg broke the story 0:20:09.720 --> 0:20:13.359 that the DOJ is preparing a suit to block Adobe's 0:20:13.359 --> 0:20:16.720 twenty billion dollar deal to buy Figma that according to sources, 0:20:16.760 --> 0:20:19.040 and one source saying carrow could come as soon as 0:20:19.080 --> 0:20:22.280 next month. I mean, really, Adobe such a dominant force 0:20:22.320 --> 0:20:25.440 in terms of software, Photoshoppy, Destrator, you know it. But 0:20:25.600 --> 0:20:28.800 when they announced that deal to acquire Figment, many you know, 0:20:28.920 --> 0:20:31.040 were kind of amazed by the price point that they 0:20:31.080 --> 0:20:33.320 were willing to spend really where they thought this would 0:20:33.320 --> 0:20:37.160 be a creative. They're trying to introduce less expensive products 0:20:37.280 --> 0:20:40.320 at the moment, but notably, just time and time again, 0:20:40.359 --> 0:20:42.440 this is an administration that is willing to go there 0:20:42.520 --> 0:20:45.760 to tackle M and A, to worry about competition and 0:20:45.880 --> 0:20:48.320 in this space, and really does feel as though, well 0:20:48.440 --> 0:20:51.359 the Bloomberg reporting getting ahead of that antitrust news and 0:20:51.440 --> 0:20:53.719 the filing. Of course, I think it's all because Adobe 0:20:53.800 --> 0:20:56.120 was actually in front and a meeting with ADJ which 0:20:56.200 --> 0:20:58.480 is often the case before we get this in announcement, 0:21:00.080 --> 0:21:02.439 consistent with what we've seen right from the DJA. Our 0:21:02.440 --> 0:21:05.000 Bloomberg intelligence analysts do point out though that in this 0:21:05.200 --> 0:21:09.000 case it probably came sooner than expected, although it was 0:21:09.119 --> 0:21:12.000 kind of expected based on the actions DJ's taken in 0:21:12.200 --> 0:21:14.600 M and A. So far, we'll pivot Caroline, but we'll 0:21:14.600 --> 0:21:17.040 stick across the story as more headlines break. Coin Base, 0:21:17.320 --> 0:21:20.879 the largest US crypto exchange, is now launching a blockchain, 0:21:21.000 --> 0:21:24.800 expanding its reach deeper into the worlds of DeFi and NFTs. 0:21:24.960 --> 0:21:27.679 Let's talk about this all with who else Bloomberg Scenali 0:21:27.680 --> 0:21:31.720 Basset out in New York, Shenali blockchain. Why this is 0:21:31.920 --> 0:21:35.320 very interesting. Remember, this is a centralized exchange if you will, 0:21:35.440 --> 0:21:38.800 looking at decentralization. When we spoke to a coin based executive, 0:21:39.040 --> 0:21:41.639 our colleague Moyo Shan reports that this is really a 0:21:41.760 --> 0:21:45.360 bet on the community. This is a layer two network 0:21:45.440 --> 0:21:48.760 here where decentralized apps can be built and it will 0:21:48.800 --> 0:21:51.600 be a home for the chain products that will be 0:21:51.680 --> 0:21:55.840 built in conjunction with this network that is being shepherded 0:21:55.920 --> 0:21:58.400 by coin Base. Now let's use some of Brian Armstrong's 0:21:58.400 --> 0:22:01.240 all words, because he said this is to improve the 0:22:01.320 --> 0:22:05.880 scaleability and usability of crypto, plus he wanted to get 0:22:05.960 --> 0:22:08.800 in on the builder energy ed. That is what he said. 0:22:08.880 --> 0:22:10.440 I also want to point out here that if you 0:22:10.560 --> 0:22:13.240 look at the initial tweets from build on base here, 0:22:13.560 --> 0:22:15.760 which is kind of the Twitter handle of base, which 0:22:15.800 --> 0:22:19.160