Speaker 1: From Mahard where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed.
Speaker 3: Ludlove and Caroline Hyde a Bloomerg's World head quarters in
Speaker 3: New York, elamed Lovelow in San Francisco.
Speaker 4: This is Bloomberg Technology coming up.
Speaker 5: Sequoia splits into three firms.
Speaker 6: The venture capital powerhouse divides into several entities. As as
Speaker 6: geopolitical tensions, they're on the rise, will break down the announcement.
Speaker 7: And Coinbase is the latest target by the SEC, with regulator.
Speaker 4: Suing the exchange. We'll discuss the US crackdown on crypto ahead.
Speaker 6: Plus we've got to dive into the state of virtual
Speaker 6: and augmented reality following Apple's Vision Pro release. We've got
Speaker 6: the CEO of ar company, Magic Leap.
Speaker 5: On the show.
Speaker 6: All that and so much more up first, let's check
Speaker 6: in on relatively muted markets today. Regional Bank's getting kick higher,
Speaker 6: but in general, we're looking at what the World Bank
Speaker 6: is warning about the global environment in which we stand.
Speaker 6: What of interest rates, what of the disruption to global economies?
Speaker 6: We're not five tens percent on the Nasdaq? Is big
Speaker 6: tech manages to push up even though his apple is
Speaker 6: a little like luster. We see the two year yield
Speaker 6: though on the higher side five basis points.
Speaker 5: On the front end.
Speaker 6: That means maybe we're less confident that the Federal Reserve
Speaker 6: will put on ice some of those rate cut rate hikes,
Speaker 6: even rate cut Remember Rich Clarender, he's the vice chair
Speaker 6: of the Fed today saying, look, we're not cunning anytime
Speaker 6: soon and likely to see on pause for the time being.
Speaker 5: Euro curring up by two tens percent.
Speaker 6: Interesting that inflationary pressures just dive back that little bit
Speaker 6: in the Eurozone. Meanwhile, Australian central Bank fighting inflation hard.
Speaker 6: This really is the global narrative inflation and how that
Speaker 6: affects global growth. But moving on, because well, one risk asset,
Speaker 6: one growth asset, might say Ashley having an interestingly volatile day,
Speaker 6: We're back to it with bitcoin and actually training higher
Speaker 6: twenty six thousand. It will still well below that thirty
Speaker 6: thousand nine that we managed to crack a little while ago.
Speaker 6: We were worried about some of the effects of the
Speaker 6: SEC focused on crypto, but actually managed to push higher
Speaker 6: about ten am there or thereabouts.
Speaker 5: So maybe people buying the diff at the moment ed.
Speaker 7: Yeah, very clearly moving to the downside. Is Apple off
Speaker 7: by three tents of percent. The street basically saying this
Speaker 7: is either sell the news or details of the Vision
Speaker 7: Pro mixed reality headset already priced into the stock. We
Speaker 7: will have a lot of day two reaction and analysis
Speaker 7: from that big WWDC event.
Speaker 4: I'm looking a lot of the chip sector as well.
Speaker 7: Taiwan Semiconductor This is the US ADRs up by two percent.
Speaker 7: They restated their four year capex guidance, coming at the
Speaker 7: low end of the previously guided range around thirty two
Speaker 7: billion dollars, having an impact in markets Applied materials the
Speaker 7: chip equipment maker higher by a percentage point have been lower.
Speaker 7: The idea being less capex spend by the world's biggest
Speaker 7: contract chip manufacturer would not be good news, but actually
Speaker 7: a rebound there. And sticking with chips Intel higher by
Speaker 7: four and a half percent. The company is selling one
Speaker 7: point five billion dollars worth of its stake immobilize the
Speaker 7: automotive tech name and with options to sell further shares
Speaker 7: as well. The other top top story is Coinbase shares
Speaker 7: down significantly after the US Securities and Exchange Commission the
Speaker 7: SEC said it's suing Coinbase for breaching securities law. Bloomberg
Speaker 7: also has fresh thoughts on this from SEC chair Gary Gensler,
Speaker 7: weighing in on the state of the crypto industry and
Speaker 7: the steps it needs to take to protect customer assets
Speaker 7: and its integrity.
Speaker 4: Have a listen.
Speaker 8: I think the crypto industry, more broadly, if it's going
Speaker 8: to have any success going forward, has to come into
Speaker 8: compliance with basic public policy about disclosure, about avoiding conflicts,
Speaker 8: about segregating properly segregating customer funds, and guarding against fraud manipulation.
Speaker 8: Without that, this whole area stands, the chances are collapsing
Speaker 8: like a house of cards.
Speaker 7: The SEC sues Coinbase. Let some packet further with Shnalie Bassett, Bloomberg,
Speaker 7: Wall Street REPORTERNALI What is it the core of the
Speaker 7: SEC's argument here?
Speaker 5: A few things here.
Speaker 9: We have to think about this claim that the SEC
Speaker 9: is making that they are acting as an unregistered broker
Speaker 9: dealer and listing on registered securities, which has been up
Speaker 9: for debate in the cryptocommunity when it comes to regulators
Speaker 9: at least for a long time now. Coinbase, we know
Speaker 9: says that a lot of the things that they've listed
Speaker 9: are not securities, while the Securities in Exchange Commission believes
Speaker 9: they are, and they have a very specific list here
Speaker 9: of tokens that they have referred to as believing as securities.
Speaker 9: When we've spoke to Brian Armstrong about this on the record,
Speaker 9: they have talked about the listing process they've had at Coinbase,
Speaker 9: so we know that they vigorously disagree with what the SEC.
Speaker 10: Is saying listened.
Speaker 9: I think there's another couple of twists and turns in
Speaker 9: this story too, because if you remember, Coinbase actually had
Speaker 9: looked to acquire, had acquired a broker dealer license that
Speaker 9: has been dormant with the SEC. So I expect that
Speaker 9: to come back up again because they have been talking
Speaker 9: about that in recent months.
Speaker 5: So it's not for lack of trying to become.
Speaker 9: A broker dealer as they are being sued by the SEC.
Speaker 10: Here.
Speaker 6: Let's just rud in the conversation to Binance, which of
Speaker 6: course was the news of yesterday. So the SEC is
Speaker 6: tackling all manners of exchanges at the moment.
Speaker 9: Yeah, and you have two different things happening on two
Speaker 9: different days. You have Binance, the largest exchange in the world,
Speaker 9: but some of the allegations being made against Binance are
Speaker 9: very different than the ones being made against Coinbase. Here
Speaker 9: at Binance, they are looking at all your customer rules,
Speaker 9: corrupted trading volumes, reliance on related party transactions. Another thing
Speaker 9: to look at with Binance is the difference in where
Speaker 9: the suit was filed. That is a very subtle difference, however,
Speaker 9: in the legal community here too, if you look the
Speaker 9: SEC had filed that suit in Washington versus New York State. Remember,
Speaker 9: there are ongoing investigations elsewhere when you look at the
Speaker 9: US government and how it's trying to look at Binance's operations,
Speaker 9: particularly because Binance as a whole is not on US ground.
Speaker 9: When it comes to coinbase, again, this is a matter
Speaker 9: more largely of not just unlisted securities or the allegations
Speaker 9: of having unlisted securities. It is also the staking as
Speaker 9: a service, which as we know, is a pretty critical
Speaker 9: on ramp and the way we think about how people
Speaker 9: will engage in crypto moving forward. The other interesting thing
Speaker 9: is coinbas is based in the United States, publicly listed.
Speaker 9: The SEC allowed that to happen, and so there are
Speaker 9: different tensions going on here and the way that they
Speaker 9: are in fact litigated, will also be different. My sources
Speaker 9: are saying over Coinbase, not surprisingly, that they intend to
Speaker 9: defend themselves very vigorously, as what you would expect from
Speaker 9: a suit here that is not settled as it stands today,
Speaker 9: all right, thanks.
Speaker 7: To the bloomboation Aali Basset Wall Street report out there
Speaker 7: in New York. Meanwhile, venture capital giants Sequoia Capital is
Speaker 7: splitting global operations into three separate firms, is GPLIS Tensions
Speaker 7: between the US and China continue to SIMI let's get
Speaker 7: more details with Lazette Chapman covering all things venture capital
Speaker 7: for Bloomberg Technology. Let's start with Sekoia specifically. I kind
Speaker 7: of feel like the writing's been on the wall for
Speaker 7: this firm or three separate entities for some time.
Speaker 2: Yeah. I think that's that's right.
Speaker 11: This has been a rough it just kind of going
Speaker 11: back here, Sequoia has had a very tough year. They've
Speaker 11: had a lot of challenges from you know, challenges related
Speaker 11: to the change structure right before the public markets tanked,
Speaker 11: to their backing of Twitter, to their their backing of
Speaker 11: FDx FTX, the largest crypto implosion that you guys have
Speaker 11: been talking about on the show on and off and
Speaker 11: on and off, and so they've had a lot of
Speaker 11: issues this past year, increased tensions from Washington d C
Speaker 11: to really clamp down on what they're doing in China,
Speaker 11: what they have been doing there in terms of supporting
Speaker 11: investments there, both directly from their US partners and through
Speaker 11: their limited partners through who they convinced to invest in
Speaker 11: its Sequoia China operations two decades ago have all come
Speaker 11: together to this moment.
Speaker 2: So it's been building for a while.
Speaker 5: But then the ripple.
Speaker 6: Effects is that Kose light speeds China partners as well
Speaker 6: as DST Global. Do we expect that others will have
Speaker 6: to make similar moves? Is this a very individual, idiosynclassic event.
Speaker 11: There has been mounting pressure, i'd say for the past
Speaker 11: year or so.
Speaker 2: It's really intensified in the past.
Speaker 11: Few months on the part of Washington lawmakers to crack
Speaker 11: down on investors here in the US that are backing
Speaker 11: Chinese startups that are focused on sensitive technologies AI, quantum
Speaker 11: autonomous drones and other areas that could have a military application,
Speaker 11: and in fact do in many cases. You look at
Speaker 11: DGI drone. Now to your question, is this just the
Speaker 11: ripple effect. Is this the big ginning of more to come?
Speaker 5: Again?
Speaker 2: We don't have that's a great question.
Speaker 11: We don't haven't heard anything from light Speed and Kochwu
Speaker 11: and some of the other US based investors who have
Speaker 11: also made big bets there.
Speaker 2: But there is activity on the hill.
Speaker 11: There is an EO and executive order which is expected,
Speaker 11: and it has been expected.
Speaker 2: For some time and has not yet come through.
Speaker 11: So what that EO is going to look like and
Speaker 11: whether it's the first step of many or the final
Speaker 11: will will help answer that question.
Speaker 2: Caroline.
Speaker 4: Yeah.
Speaker 7: The policy landscape perspective is that Bloomberg has reported the
Speaker 7: President is considering limiting outbound investment to China. When you
Speaker 7: and I Laze are out in the valley at events whatever,
Speaker 7: speaking to venture capitalists, there's also this ethical and philosophical
Speaker 7: consideration either about taking money from Chinese LPs or deploying
Speaker 7: capital into Chinese startups. Just tell us what you're hearing
Speaker 7: on that front.
Speaker 2: Well, one of the biggest that's a great point.
Speaker 11: One of the biggest things that you and I have
Speaker 11: both been hearing has been this bickering kind of between
Speaker 11: you know, vcs that are really investing and focusing on
Speaker 11: defense technology and national security applications. That seem to be
Speaker 11: the loudest voices in the room. These are ones including
Speaker 11: Founder's Fund and Andrews and Horowitz through their American Dynamism Fund,
Speaker 11: that are looking at US competition in these emerging technologies
Speaker 11: and the applications that it could have for for military. Now,
Speaker 11: you know, in terms of what this, what this means
Speaker 11: and kind of that tension between those firms, we haven't
Speaker 11: heard anything yet from from any partners as to, you know,
Speaker 11: whether this this split up is enough or.
Speaker 2: Not, but there is concern.
Speaker 11: About about the support that US money is giving a
Speaker 11: lot of firms. I think it's worth noting that it's
Speaker 11: that that one thing that that Koya did not mention
Speaker 11: in this is what's going to happen to their US
Speaker 11: partners that still have an interest in the fund. So
Speaker 11: that's have already made They've made these investments years and
Speaker 11: years ago. I'm thinking about TikTok, I'm thinking about Dji
Speaker 11: and other ones where they have billions and billions of
Speaker 11: dollars but it's illiquid, and they made these investments at
Speaker 11: a time that it was legal. So now we're looking
Speaker 11: at a situation where they have this money but they
Speaker 11: can't necessarily get it out right now, and that's not
Speaker 11: even the focus of their announcement today, but that's kind
Speaker 11: of the elephant in the room to some extent, and
Speaker 11: they said, you know, hey, it's not geopolitical tensions that
Speaker 11: are pushing us. That they kind of downplayed that in
Speaker 11: some statements, but you know, it's kind of tough to
Speaker 11: avoid that when when any you.
Speaker 2: Know, I don't really know that that is going to
Speaker 2: be their final statement on it.
Speaker 5: Has that Chapman, We'll see.
Speaker 6: I'm sure they'll be plenty more reporting coming from you
Speaker 6: on all of this. We thank you so much for
Speaker 6: breaking it down.
Speaker 12: So in the same way that Mac introduced us to
Speaker 12: personal computing and iPhone introduced us to mobile computing, Apple
Speaker 12: Vision Pro will introduce us to spatial computing. This marks
Speaker 12: the beginning of a journey that will bring a new
Speaker 12: dimension to powerful personal technology.
Speaker 6: Tim cookber one day on after the Worldwide Developers Conference,
Speaker 6: I'm veiling the Apple Vision Pro and the era.
Speaker 5: Of spatial computing from more. Let's bring in judiask, principle.
Speaker 6: Analyst Forrester, who is jetted in on the Red Eye,
Speaker 6: having been at that event, So ten out of ten
Speaker 6: for all the effort to be made to describe to
Speaker 6: us what on our special computing.
Speaker 5: Is, thank you.
Speaker 4: Yeah.
Speaker 1: No, I had the opportunity to put on the it's
Speaker 1: not a headset, it's a spatial computing device and get
Speaker 1: a private demo, and I would tell you it impresses.
Speaker 1: It is It's like nothing I've ever tried before, and
Speaker 1: I've tried on a lot of headsets.
Speaker 5: Yeah.
Speaker 1: From the uh, the setup is easy, the inn face
Speaker 1: is very intuitive than for most devices. And then when
Speaker 1: you think about almost one hundred and eighty degrees field
Speaker 1: of view, it's you can't imagine it.
Speaker 6: So at three and a half thousand dollars, do you
Speaker 6: feel that that's the right price tag they're going for,
Speaker 6: you know, a luxury item before they go for complete
Speaker 6: compute power in everyone's hands.
Speaker 10: Yeah.
Speaker 1: So I think often that is the Apple strategy. And
Speaker 1: I think one of the other advantages of not calling
Speaker 1: it a headset is Apple computer costs anywhere from about
Speaker 1: eight or nine hundred dollars up to seven thousand.
Speaker 9: So this is.
Speaker 1: A mid range computing device, spatial computing device for Apple.
Speaker 1: It's not an expensive headset.
Speaker 7: Julie, I'm sorry, I've got to go back to this,
Speaker 7: the one question that everyone has. I was at APPLEWWDC
Speaker 7: as well. What is spatial computing?
Speaker 1: Yeah, it's three D, so I'll get Let me give
Speaker 1: you a few examples of what that means. So, in
Speaker 1: one example, I was what appeared to be on the
Speaker 1: top of a cliff above a fjord in Norway, and
Speaker 1: I was able to peer over. I was also able
Speaker 1: to sit at the edge of a lake and listen
Speaker 1: to the lapping water on the shore while reading a book.
Speaker 1: I was a butterfly came at one point and landed
Speaker 1: on my finger, and a dinosaur gobbled my hand. So
Speaker 1: those are a few examples. But the other exciting thing
Speaker 1: about this new device is that it can take photos
Speaker 1: and it can take videos. So I watched children having
Speaker 1: a birthday party. And to allow consumers to create this
Speaker 1: kind of videos on their own, we haven't seen something
Speaker 1: like this in a very long time.
Speaker 7: What jumped out on me when I got up close
Speaker 7: and personal with the Vision Pro was the appendage, the
Speaker 7: battery pack and the gray cable running from it.
Speaker 4: What did you make of that?
Speaker 10: Well, it's so a couple things.
Speaker 1: So one you know, the concern with a device like
Speaker 1: this that we're not calling a headset is always the
Speaker 1: weight of the device. So everyone's looking for ways to
Speaker 1: take any kind of weight or size out of it.
Speaker 1: So as it is now, the device is about one
Speaker 1: pound and so that's on the head, and then the
Speaker 1: battery pack is about the size maybe of an iPhone
Speaker 1: or an iPhone pro and it sits to the side.
Speaker 1: The battery life is two hours, I believe, and I've
Speaker 1: heard folks not that. But on the other hand, you're
Speaker 1: also unlikely to have this device on your head for
Speaker 1: more than one to two hours, and so I think
Speaker 1: they've engineered that just about right, that it's the battery
Speaker 1: pack's going to last longer than I'm likely to have
Speaker 1: this on my head for one session.
Speaker 7: You know, a Cara being at Apple Park paying close
Speaker 7: attention to the keynote the presentation. There was a lot
Speaker 7: of emphasis on the idea that the Vision Pro can
Speaker 7: do lots of things that are accessible on the iPad
Speaker 7: and iOS, that all that great stuff. It's ready to go,
Speaker 7: and given the price point, I thought that was interesting.
Speaker 1: Yeah, I think it's a very smart strategy because if
Speaker 1: you look at the VR headset market today, it's primarily gaming,
Speaker 1: it's education, it is a little bit of fitness, and
Speaker 1: then meta is hopeful for some social media. If you
Speaker 1: look at the strategy that Apple is taking with their device,
Speaker 1: it's tapping into media consumption, which is far far easier
Speaker 1: for consumers to get up and get running and get
Speaker 1: going and have enjoyment from the device. And it also
Speaker 1: taps into the Apple one services that so many of
Speaker 1: their customers are already buying. If you think about it,
Speaker 1: typical Apple smartphone owner, more than ninety percent of them
Speaker 1: also own an Apple computer, more than half of them
Speaker 1: own a tablet, a third of them own an Apple
Speaker 1: Watch or a one of the smart speakers, and so Apple,
Speaker 1: I don't know if you want to call them enthusiasts.
Speaker 1: People who own Apple products tend to own the many
Speaker 1: products within the ecosystem, and so when they use something
Speaker 1: like the Apple one services, they get the benefit of
Speaker 1: using those devices. You know, that service across all of
Speaker 1: the devices they own. So very easy, quick startup and
Speaker 1: very easy, fast utility and value to the consumers what
Speaker 1: this device will deliver.
Speaker 6: Judy ask jet Setting from Forster Research. We thank us
Speaker 6: so much. I have more on this later. Of course,
Speaker 6: we've got AI Officionada CEO, Magic Leap, peggiejansonet.
Speaker 4: And also coming up.
Speaker 7: Startup Instabace makes use of open AI, large language models
Speaker 7: and nabs a two billion dollar evaluation the process. More
Speaker 7: on that next with the CEO and at Budwatch.
Speaker 4: This is Bloomberg Business Services.
Speaker 7: Startup Instabase has raised a new round of funding, doubling
Speaker 7: its valuation to two billion dollars, a deal boid by
Speaker 7: the companies you solve new generative AI tools in its
Speaker 7: suite of corporate products. Let's bring in the CEO and and.
Speaker 4: Bardwade for more. Welcome to the program.
Speaker 13: Coatter, we're here.
Speaker 4: Basically you're building on GPT four.
Speaker 13: We use GPT three point five and GP point five
Speaker 13: and for both as part of five product moving fraideword.
Speaker 7: Yes, what was the attractiveness of using that foundation model
Speaker 7: when you were thinking about your future use case and
Speaker 7: functionality so.
Speaker 13: Earlier we use smaller language models. And one of the
Speaker 13: requirements in that case is if you want to make
Speaker 13: it word for like diverse set of problems, you have
Speaker 13: to find tune thoise models where basically retrain it on
Speaker 13: customer data like you have to take a few more sample.
Speaker 4: This one can work out of the box.
Speaker 13: So for example, I can just take the same model
Speaker 13: and apply it for legal discovery use case, or for
Speaker 13: loan processing, or for writing poetry, So you don't need
Speaker 13: to kind of like retrain or find you unit for
Speaker 13: every single use case. Which is a very very very
Speaker 13: valuable stuff for our customers speacause now they can use
Speaker 13: it from data.
Speaker 6: Overall, the focus that you've made on productivity and the
Speaker 6: idea that this is going to sort of revolutionize, this
Speaker 6: is what the market seems to be gripping onto the
Speaker 6: fact that AI is going to add inject trillions of
Speaker 6: dollars of productivity into the overall economy.
Speaker 5: Do you buy into that and do you think that the.
Speaker 6: Efficiency is right here right now and you're able to
Speaker 6: sell this sort of product easily into your product into
Speaker 6: your overall client base.
Speaker 13: Yes, I do believe so, and I think I'll give
Speaker 13: you an example along the spectrum of like from individuals
Speaker 13: to small businesses to LARTI enterprises like currently, AI has
Speaker 13: reached to the point where where like for people like
Speaker 13: us as an individual, if you want to file taxes,
Speaker 13: we can give all the documentsage can generate the tax
Speaker 13: filing for US, saving like a lot of time. And
Speaker 13: you can find like hundreds of huge cases of similar kind.
Speaker 13: Now let's take an example of like small business. Let's
Speaker 13: say you are a legal firm and you have to
Speaker 13: do like you provide immigration you know, sort of like
Speaker 13: farm filling or immigration services. Now you can collect all
Speaker 13: the data from your customers and AI can read all
Speaker 13: of those stuff and generate automatically the farm filling, saving
Speaker 13: a ton of time. And we already work with like
Speaker 13: Larly enterprises. In fact, you know four of the top
Speaker 13: banks are our customers in the US. Globally, we have
Speaker 13: several customers like a standard chartered NatWest, ACSA and so on,
Speaker 13: and mortgage processing or know your customer or client onboarding.
Speaker 13: We have been able to automate althose we are seeing
Speaker 13: that AI can significantly increage productivity both at individual level
Speaker 13: as well as at operational level.
Speaker 6: I can tell that being able to reel out all
Speaker 6: these current customers the adoption rate, that's going to be
Speaker 6: easier to raise funds and that sort of an environment.
Speaker 6: But this is a difficult environment to raise funds. How
Speaker 6: quickly could you raise them? Was that the amount that
Speaker 6: you wanted and ultimately what you put the money to work.
Speaker 5: For a nut.
Speaker 13: So yeah, this environment is definitely slightly more difficult than
Speaker 13: in our prior environments that we have been In. All
Speaker 13: the prior environments, you know, we never had to go
Speaker 13: out to the market to rage. In fact, somebody came
Speaker 13: and offered us the money. In this case, I mean
Speaker 13: we talked to a few investor. It took us about
Speaker 13: three to five months of time to rage around, but
Speaker 13: it wasn't super complicated, mainly because most of the investors
Speaker 13: who participated but already had a gifting investors which helped
Speaker 13: us significantly.
Speaker 7: The argent Sety of Tribe Capital been on this program,
Speaker 7: takes a board observer's.
Speaker 4: Seat with you.
Speaker 7: What is it like doing business with open AI. I
Speaker 7: know Brad light Cap helped you technologically, but what is
Speaker 7: the financial relationship between you? Is it good value using
Speaker 7: their underlying model.
Speaker 13: So it's definitely a good value for us in the
Speaker 13: sense that we can help our customers get value very
Speaker 13: very quickly. From the perspective of opening aird relationship. Given
Speaker 13: that we worked with very regulated environments like banks, we
Speaker 13: had to get into a scuccle partnership like how what
Speaker 13: happens with their attendant policy, What is privacy?
Speaker 4: What is security?
Speaker 13: How we can run the models in a way where
Speaker 13: it is compliant with the requirements that we have. So
Speaker 13: that's why we had to develop a deep relationship with
Speaker 13: Toponai to make sure that we can run it that way.
Speaker 7: Fifteen seconds. Dreams of going public? Yes, oh okay, one
Speaker 7: word answer, Caroline, dreams are going public.
Speaker 6: He got the memo insta a CEO and had great
Speaker 6: speaking with you. Thank you and Aunt Valdoaje there, welcome
Speaker 6: back to Rumol Technology.
Speaker 5: I'm Caroline had in New.
Speaker 4: York Andamed Ludlow out here in San Francisco.
Speaker 10: Caroy.
Speaker 7: Let's get a quick check in on the markets and
Speaker 7: in true for real muted session, not much going on.
Speaker 7: SMP five hundred tenth percent, basically flat on the Nasdaq
Speaker 7: one hundred some rotation. It's financial, some bottom feeding potentially
Speaker 7: going on. Not much of a clear catalyst as we've
Speaker 7: had in recent sessions. The yield on US ten year
Speaker 7: three point seven percent up by a couple of basis points.
Speaker 7: Bitcoin kind of stabilizing. When those headlines came out about
Speaker 7: the sec sewing coinbase, there was a knee jerk reaction
Speaker 7: adding to the events of the last twenty four hours,
Speaker 7: and the SEC also looking at Binance, but we've kind
Speaker 7: of recovered a little bit twenty six thousand US dollars
Speaker 7: per token or so in terms of the individual mover
Speaker 7: one to the downside, but given its size its market cap,
Speaker 7: it's waiting in major indices. We take a look at
Speaker 7: Apple kind of trading neither here nor there. A lot
Speaker 7: of the streets saying that the announcements from WWDC, the
Speaker 7: specifics on the Vision Pro mixed reality headset that's priced
Speaker 7: into the stock or it's to sell the news event
Speaker 7: for a lot of a lot of the market softer
Speaker 7: by about half percentage point, but of course coming off
Speaker 7: fresh intra day record, which it had come off anyway
Speaker 7: after the events of the keynote.
Speaker 4: Character.
Speaker 6: Yeah, and it was notable that that keynote, how perhaps
Speaker 6: of official intelligence was just leased in there into the
Speaker 6: future of this product, in the future of the chips
Speaker 6: of course, that they were announcing the strength of capability
Speaker 6: generative AI being one of them, were going to dig
Speaker 6: into artificial intelligence a little bit more in our VC
Speaker 6: spotlight segment, and we want to bring in an investor
Speaker 6: who's also a founder deeply rooted in AI. Jacqueline Rice
Speaker 6: Nelson is here general partner and early stage bench fund
Speaker 6: coalition operators and CEO and co founder.
Speaker 5: Of Tribe Ai.
Speaker 6: It's a network of all the world's top technologists that
Speaker 6: builds advanced AI solutions for companies of all sizes, and
Speaker 6: that coalition must be.
Speaker 5: Rather busy right now. I mean, how much inbound are
Speaker 5: you getting a lot?
Speaker 14: Which is on both sides of the business. Actually, so
Speaker 14: right now you are hearing about lots of innovation happening
Speaker 14: across the tech sector and with AI companies specifically tons
Speaker 14: of early stage development. It's never been more attractive to
Speaker 14: start a company, and certainly an AI company. And then
Speaker 14: on the Tribe side of the house, companies have never
Speaker 14: needed more help to become AI companies. And so we
Speaker 14: are really helping with that sort of last mile of
Speaker 14: delivery from experimentation into really helping companies build solutions that
Speaker 14: they can put in front of the market and the product.
Speaker 5: Look, what the market, what investors.
Speaker 6: What everyone is trying to discern is whether the hype
Speaker 6: is reality, Whether all these talk of trillions of dollars
Speaker 6: being added to markets of overall GDP and productivity is
Speaker 6: actually happening. When you're building with tribai inside corporate America
Speaker 6: right now, are you seeing real productivity gains.
Speaker 14: It's still early in I think the AI market period,
Speaker 14: but if you even look pregenerative AI, there have been
Speaker 14: tremendous gains from machine learning. You really only need to
Speaker 14: look at Google, Amazon, Facebook, etc. There probably isn't a
Speaker 14: part of these businesses that isn't running with AI and
Speaker 14: machine learning. You just mentioned it yourself. Even though Apple
Speaker 14: didn't talk about AI explicitly, it was embedded into everything
Speaker 14: man ounced yesterday. And this is really the nature of
Speaker 14: how all businesses will be built going forward, and it
Speaker 14: is just the beginning of truly experimenting for many of
Speaker 14: these much larger organizations, true incumbent enterprise players who are
Speaker 14: building with AI truly is experiments. The pace at which
Speaker 14: they are moving to adopt these technologies is frankly on
Speaker 14: like anything I've ever seen before. But I think the
Speaker 14: gains from them are still sort of in that experimental phase.
Speaker 14: And this is very much where my thesis is on
Speaker 14: the market, is that we are still so early and
Speaker 14: the opportunity for enterprises to become AI companies is going
Speaker 14: to create massive value creation across the economy.
Speaker 7: Well, Jacqueline, with your venture capital hat on, how do
Speaker 7: you play the market in real terms? Twelve and a
Speaker 7: half million dollars doesn't seem like a lot of dry powder,
Speaker 7: even at the seed or early stage. You know, we
Speaker 7: just had insta base on two billion evaluation for a
Speaker 7: company built on GPT three point five. But it's basically
Speaker 7: an enterprise company. So how do you actually have a
Speaker 7: meaningful impact and establish a portfolio of companies that will
Speaker 7: give you a realistic chance of exit down the road.
Speaker 3: Yeah?
Speaker 14: Absolutely, And this is what's on everyone's mind right now.
Speaker 14: So when I look at the early stage market, I'm
Speaker 14: really looking at pre seed through Series A, and these
Speaker 14: opportunities are still quite nacent. Some of them are priced
Speaker 14: at crazy levels, and others are still quite attractive from
Speaker 14: a pricing perspective. So there's really a range, and I
Speaker 14: think we are getting in on the ground floor.
Speaker 10: What I get really excited.
Speaker 14: About is companies that are actually using AI to solve
Speaker 14: real problems. And so I really do think of this
Speaker 14: as sort of the new vertical SaaS. So AI will
Speaker 14: be used to solve problems for particular types of verticals, businesses, buyers,
Speaker 14: and that is where I think we're going to see
Speaker 14: the most game from a valuation and tech perspective long term,
Speaker 14: is when AI is not just used as a buzzword
Speaker 14: or as something to get the highest pricing or valuation
Speaker 14: they possibly can, but actually to solve a real need
Speaker 14: for customers and for target buyers that otherwise is being
Speaker 14: completely unserved.
Speaker 7: Jacqueline, is there a specific use case or area that
Speaker 7: you think generative aior foundation models will unlock? Tell me
Speaker 7: what is it that gets you excited? There's maybe underappreciated
Speaker 7: in the market.
Speaker 14: Yeah, there's really so much that gets me excited. I
Speaker 14: think where all the focus today is on just how
Speaker 14: fast things like chatchpt have been adopted, But this has
Speaker 14: happened before. So if you look at consumer adoption of Netflix, Instagram, TikTok,
Speaker 14: consumers have actually moved through these platform shifts at really
Speaker 14: fast paces. Now AI is moving faster for consumers, But
Speaker 14: what's most interesting to me is actually the pace at
Speaker 14: which businesses are moving, and that, frankly, is what is
Speaker 14: so different about this and feels like a true platform shift.
Speaker 14: And when I look at past platform shifts, so thank
Speaker 14: data migration and cloud even the SaaS wave.
Speaker 10: These if these were waves.
Speaker 14: AI is the tsunami, and the tsunami the large wave
Speaker 14: is coming. And I think this is where I see
Speaker 14: the tremendous opportunity both for Tribe but from an investment perspective,
Speaker 14: is to help some of these larger companies, enterprises and
Speaker 14: B to B companies actually adopt this technology into their
Speaker 14: business and leverage it for the full capabilities of their data.
Speaker 5: And that takes talent.
Speaker 6: What's so interesting about Tribe AI member owning network, the people,
Speaker 6: the experts that you have on there. How are they
Speaker 6: sort of setting themselves? Are you seeing that? Are they consulting?
Speaker 6: Are they being remunerated for this? Are they wanting to
Speaker 6: take full time roles? Is the market exploding for one
Speaker 6: type of talent in Techwina.
Speaker 10: Yes, it is.
Speaker 14: I think when people think about AI, they really think
Speaker 14: about just one particular skill set in this market. They
Speaker 14: think about the traditional classic AI engineers, the types of
Speaker 14: people who can build these foundation models. What's most interesting
Speaker 14: to me is one, I don't think that talent set
Speaker 14: is actually as scarce as other people do. So we
Speaker 14: have managed actually a mass hundreds of truly the top
Speaker 14: tier talent in this industry, and they want they're like
Speaker 14: any top employees. Many companies listening in CEOs are going
Speaker 14: to feel they have similar conversations with their employees, but
Speaker 14: the things that impact them aren't any longer sort of
Speaker 14: kombucha or ping pong. It's actually really making an impact,
Speaker 14: and so looking for opportunities where they can really learn,
Speaker 14: where they can earn and be remunerated for their skills,
Speaker 14: but actually make a real impact and use their skills
Speaker 14: to advance the field of AI and really make a
Speaker 14: difference in companies is what we're really seeing.
Speaker 10: Talent cares about.
Speaker 6: How diverse is that talent, because there's a lot of
Speaker 6: focus that this bias in AI, the AI is probably
Speaker 6: going to disrupt jobs mainly held by women. How diverse
Speaker 6: people of color women are there in your talent pool.
Speaker 14: So in our talent pool, we take diversity very seriously.
Speaker 14: And this is of course I'm a woman founder who
Speaker 14: has built her career in part focused on diversity. It's
Speaker 14: something I deeply care about. And when you look at
Speaker 14: tech more broadly, diversity has.
Speaker 10: Been a challenge.
Speaker 14: When you look at AI and specialty engineering areas, it's
Speaker 14: even more challenging, And so what we make a very
Speaker 14: conservative effort to make sure we're recruiting a diverse talent
Speaker 14: pool and staffing a diverse talent pool across Jackson companies.
Speaker 14: And then beyond that, I think what I spent a
Speaker 14: lot of time thinking about is incentives. So ethical AI
Speaker 14: and building AI that reduces bias is going to be
Speaker 14: critical no matter how diverse the network is, because we
Speaker 14: all are humans infallible, and so how can we actually
Speaker 14: build incentives into really al aspects of development in this
Speaker 14: field such that people are actually building responsibly and building
Speaker 14: systems and programs that will make humanity better, not just
Speaker 14: make companies more efficient.
Speaker 7: Coalition operates his partner and Tribe AI CEO and co founder,
Speaker 7: Jack Laine Brice Nelson.
Speaker 10: Thank you, thank you for having me.
Speaker 4: Now so ahead.
Speaker 7: First day in the books, it's Linda Yakarino's first day
Speaker 7: is Twitter ceo.
Speaker 4: More on what's in store for her after the break.
Speaker 4: This is Bloomberg time now for talking tech.
Speaker 7: The Japanese government is planning to triple domestically produced chips
Speaker 7: by twenty thirty, with a focus on economic security measures
Speaker 7: and advanced technology like Generator AI and TSMC just tempered
Speaker 7: its outlook for twenty twenty three. Capital spending is the
Speaker 7: main chip maker to Apple, grapples with soft demand for
Speaker 7: smartphones in particular, but also computing chips. TSMC rear firm
Speaker 7: projections for revenue in the first half of twenty twenty three,
Speaker 7: which will decline by about ten percent in US dollar terms.
Speaker 7: And buy You an ed tech company that's provides services
Speaker 7: to more than one hundred and fifty million students around
Speaker 7: the world has skipped payments on a one point two
Speaker 7: billion dollar alone, escalating a conflict with lenders. The firm
Speaker 7: says it won't make any further payment to the lenders
Speaker 7: until their dispute is decided in court.
Speaker 6: Carot fascinating global array of stories. Let's go even more
Speaker 6: global right now ed and turn to one of the
Speaker 6: most red stories on Bloomberg right now most tweeted about
Speaker 6: it's going viral shock merger between the PGA Tour and
Speaker 6: it's Saudi backed rival Live Golf's talk about that and
Speaker 6: the Middle East Kingdom's money increasingly influencing not just our
Speaker 6: world of tech of VC, but also the world of sports.
Speaker 6: And please to say Bloomberg Scarlet food rush is to
Speaker 6: set all about this, and okay, this seems like quite
Speaker 6: a sudden change of tune.
Speaker 15: Coming from the player completely because they were just locked
Speaker 15: into this vitriol and a lot of charges flying back
Speaker 15: and forth losses between the two. They're a pretty entrenched
Speaker 15: in their two sides, the PGA Tour arguing that live
Speaker 15: Golf was coming in and stealing away players with lots
Speaker 15: of money, which of course it was doing, and Live
Speaker 15: Golf's saying that the PAGA Tour was acting acting monopolistically
Speaker 15: by banning anyone who participated in live golf tournaments from
Speaker 15: playing in the PGA Tour.
Speaker 5: So they were suing each other.
Speaker 15: It looked like this break this sport, a civil war
Speaker 15: in the sport, and then all of a sudden you
Speaker 15: get a surprise merger with the two sides saying, you
Speaker 15: know what, all the lawsuits will now end, and the
Speaker 15: Governor of Saudi Arabia Sovereign Wealth Fund, which of course
Speaker 15: backs the Live Golf Tour, will be the new chairman
Speaker 15: of this as yet unnamed company, and the PGA Tour
Speaker 15: will point the majority of the ward.
Speaker 6: So, if we're going in with sporting analogies, has someone
Speaker 6: won here?
Speaker 5: And as it Live.
Speaker 15: I'm not sure, it's not clear, but it would seem
Speaker 15: that the PGA has kind of conceded here because it
Speaker 15: was really staking this claim saying that this what Live
Speaker 15: was doing was trying to buy players. They were the
Speaker 15: home of the traditional golf PGA Tour was and Live
Speaker 15: was coming in as an upstart. So certainly, by the
Speaker 15: looks of it, with Saudi money now infusing the PGA
Speaker 15: Tour or this new company, you could make that argument.
Speaker 15: On the other their hand, LIV didn't really have any
Speaker 15: broadcastability for its tournament. Yes, they signed a deal with
Speaker 15: CW Networks, but that was in the US.
Speaker 5: Beyond that, they.
Speaker 15: Were streaming on YouTube and also on their own website,
Speaker 15: so it's not like they were getting a lot of viewers,
Speaker 15: and they certainly weren't attracting sponsors either.
Speaker 6: I mean, there are quite a lot of viewers on
Speaker 6: YouTube maybe, and we're talking tech of course, but ed,
Speaker 6: I mean, this does feel like something that we talk
Speaker 6: about day and day out of just the power and
Speaker 6: the deep pockets, particularly sal Arabia of Middle East in general,
Speaker 6: and ultimately that brings power, that brings board membership, that
Speaker 6: brings a voice, It.
Speaker 7: Brings a voice. It's a debate that's been raising. I
Speaker 7: bet you, Scarlet Food watched Full Swing on Netflix. I
Speaker 7: watched this and they, you know, they documented this whole saga.
Speaker 7: But do you know what's crazy, how many golf fans
Speaker 7: there are right now? You go on Google trends, yes, Scarlett, Yeah,
Speaker 7: immediate spike in searches on this topic, real time data
Speaker 7: because it's like, how many people really played golf and
Speaker 7: a searching for it on Google trends. But also it's
Speaker 7: the most trending thing on Twitter in the US.
Speaker 15: It is surprising because before the pandemic, it felt like
Speaker 15: golf was going into this decline where everyone was saying,
Speaker 15: this is a.
Speaker 5: Stodgy old sport.
Speaker 15: They really need to find ways to reach a younger audience,
Speaker 15: younger viewers, younger players. And then the pandemic came along,
Speaker 15: and then you have this naturally socially distanced sport. Everyone
Speaker 15: wanted to get outside and it was a revival in
Speaker 15: the sport of golf. And as you mentioned at Full Swing,
Speaker 15: the Netflix documentary on golf, it just worked out running
Speaker 15: wise that it happened right along the live golf of dispute,
Speaker 15: and so you had players talking about it, deliberating over
Speaker 15: it their press conferences, where people didn't want to answer
Speaker 15: questions on it. So timing wise, it all worked out
Speaker 15: for the sport of golf. Yes, for the PGA Tour,
Speaker 15: certainly it felt like it was being encroached upon by
Speaker 15: Live Golf, and I guess now in retrospect, it seems
Speaker 15: inevitable that something had to happen between these two sides.
Speaker 15: But at the time they were really dug in, it
Speaker 15: didn't seem like any daylight there was any way that
Speaker 15: the two could come together.
Speaker 7: I actually asked Netflix for some viewership figures around Full Swing.
Speaker 7: I was curious how many people actually watched it, and
Speaker 7: they haven't replied yet. We will bring you that data, Scarlett.
Speaker 7: I guess it all comes down to money. Yes, you know,
Speaker 7: there's been some interviews this morning, They've put out statements.
Speaker 7: What do we know about the investment and what's at
Speaker 7: stake here?
Speaker 15: Well, we don't know how much Saudi Arabia is going
Speaker 15: to put into this new, as yet unnamed company, but
Speaker 15: they will have a stake. It will be a minority stake,
Speaker 15: but we do know that reportedly, the Sovereign Wealth Fund
Speaker 15: Public Investment Fund reportedly made a two billion dollar investment
Speaker 15: in Live Golf. They back, of course, the Golf League
Speaker 15: as well, so if more money was needed, they would
Speaker 15: certainly plow that into it. My understanding is that Live
Speaker 15: goolf did not make a whole lot of money in
Speaker 15: its first year, about seventy five million at most in
Speaker 15: revenue last year, and again that goes back to the
Speaker 15: lack of big sponsors, because most of the sponsors were
Speaker 15: committed to the PGA Tour were Now that does of course,
Speaker 15: with the two sides deciding to come together, there's still
Speaker 15: a lot of question marks about all these legal battles
Speaker 15: because even though the two sides have decided to end
Speaker 15: their losses against each other, the Department of Justice got
Speaker 15: boiled into this as well. They're investigating the PGA Tour
Speaker 15: for monopolistic anti trust behavior and maybe they'll come in
Speaker 15: and say, you know what, the two sides you can't merge.
Speaker 5: We don't know.
Speaker 7: And in that instance was because the PGA Tours said
Speaker 7: to the players, you can't go. You know, it's just
Speaker 7: an amazing dynamic and come back to us, right, And
Speaker 7: who would have thought on across eighteen holes that would
Speaker 7: be an issue Bloomboth Scarlet Food, thank you very much.
Speaker 5: Well, the first day is already in the books. Toill
Speaker 5: Linda y Acharino.
Speaker 6: It's day two now for Twitch's new CEO, taking the
Speaker 6: helm after pretty rocky tenure from Melon Musk. Of course,
Speaker 6: let's just dive a little bit deeper into what lies
Speaker 6: a filandia Eacharino and Twitter at Large Blue MiG Sarah Fhire.
Speaker 5: I'm very peace to say, joins us.
Speaker 6: And you know, optimism abound when you look at her tweets,
Speaker 6: but ultimately she's got a big sort of area to stabilize,
Speaker 6: particularly when we've seen some important executives lead, particularly in
Speaker 6: the trust and Safety park.
Speaker 16: I mean that's an understatement. She has a huge task
Speaker 16: ahead of her. She has all the advertisers to win
Speaker 16: back over. The New York Times reported on Monday that
Speaker 16: Twitter's ad revenues down fifty nine percent from the year earlier,
Speaker 16: based on internal documents. That is, her job is to
Speaker 16: restore that and grow it half you know what it
Speaker 16: was for and other business lines like like maybe Twitter
Speaker 16: subscription business and Twitter Blue. And she has to do
Speaker 16: all that without these key executives who were in charge
Speaker 16: of keeping the site hospitable to advertisers by removing violent content, pornography,
Speaker 16: hate speech, things that people wouldn't want. Brands wouldn't want
Speaker 16: to have their content next to you, and frankly, users
Speaker 16: don't want to post their tweets next to either. So
Speaker 16: it's really going to be an uphill climb for yach Arena.
Speaker 16: She seems quite enthusiastic in her public tweets.
Speaker 2: But of course she has to be. She's just getting started.
Speaker 7: You know what's interesting to me Sarah is her use
Speaker 7: of Twitter. So she's welcomed some new hires from NBC
Speaker 7: Universal via Twitter. She did that I think Sunday before
Speaker 7: even day one. You know, you know this landscape, you
Speaker 7: know the executives that operate within social media. What do
Speaker 7: you make of her use? It's kind of almost Muskian
Speaker 7: in a way.
Speaker 16: Well, she has to, I mean, she has to use
Speaker 16: the product to show how a can. She has to
Speaker 16: set an example, for instance, with the others who were
Speaker 16: her peers.
Speaker 2: I mean, she's going to.
Speaker 16: Be selling Twitter ad space to the people that she
Speaker 16: sold NBC ad space too. And one of the things
Speaker 16: that she would say when she was at NBC Universals
Speaker 16: this is cleaner than social media. This is what you
Speaker 16: see is what you get, Like these shows are are
Speaker 16: appropriate for your brand. And now she's going to have
Speaker 16: to take a very different tact and say, you know,
Speaker 16: social media is a place where anyone can talk, and yeah,
Speaker 16: it's going to be a little bit different, especially under
Speaker 16: Elon Muscus. He's rolled back those content rules as he
Speaker 16: has fewer staff that can actually implement some brand safety
Speaker 16: measures on the site.
Speaker 4: She's going to have to sell that.
Speaker 16: And camp Con is coming up and and all sorts
Speaker 16: of opportunities for advertised to spend on Twitter, and we'll
Speaker 16: have to see if they if they restore their budgets.
Speaker 7: She has tweeted Bay Area Views coming soon, so maybe
Speaker 7: she's moving out here towards FS. So thanks to Bloomberg
Speaker 7: Tech editor Sarah Fryer, Wow, two days in what weeks
Speaker 7: so far? That does it for this edition of Bloomberg Technology.
Speaker 4: Character.
Speaker 6: Yeah, you do not want to forget aster cause you
Speaker 6: can find it on the terminole as well as online
Speaker 6: on Apple, Spotify, at iHeart, wherever you choose to digest.
Speaker 6: And yeah, if you go to some of those well
Speaker 6: history in the making recorder on those tweets more on
Speaker 6: that soon to come.
Speaker 5: The supream, though