WEBVTT - Sequoia Splits Into Three Firms and the SEC Targets Coinbase 0:00:01.680 --> 0:00:05.360 From Mahard where Innovation of Money and Power Collie in 0:00:05.440 --> 0:00:06.960 Silicon Valley, NBN. 0:00:07.280 --> 0:00:10.880 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:10.840 --> 0:00:27.360 Ludlove and Caroline Hyde a Bloomerg's World head quarters in 0:00:27.400 --> 0:00:29.840 New York, elamed Lovelow in San Francisco. 0:00:29.960 --> 0:00:32.080 This is Bloomberg Technology coming up. 0:00:32.159 --> 0:00:34.440 Sequoia splits into three firms. 0:00:34.440 --> 0:00:38.080 The venture capital powerhouse divides into several entities. As as 0:00:38.159 --> 0:00:41.640 geopolitical tensions, they're on the rise, will break down the announcement. 0:00:41.760 --> 0:00:45.839 And Coinbase is the latest target by the SEC, with regulator. 0:00:45.400 --> 0:00:49.720 Suing the exchange. We'll discuss the US crackdown on crypto ahead. 0:00:50.080 --> 0:00:52.440 Plus we've got to dive into the state of virtual 0:00:52.520 --> 0:00:56.120 and augmented reality following Apple's Vision Pro release. We've got 0:00:56.120 --> 0:00:58.000 the CEO of ar company, Magic Leap. 0:00:57.840 --> 0:00:58.240 On the show. 0:00:58.280 --> 0:01:00.920 All that and so much more up first, let's check 0:01:00.960 --> 0:01:04.720 in on relatively muted markets today. Regional Bank's getting kick higher, 0:01:04.720 --> 0:01:06.319 but in general, we're looking at what the World Bank 0:01:06.360 --> 0:01:09.639 is warning about the global environment in which we stand. 0:01:09.760 --> 0:01:12.920 What of interest rates, what of the disruption to global economies? 0:01:12.959 --> 0:01:14.800 We're not five tens percent on the Nasdaq? Is big 0:01:14.840 --> 0:01:17.360 tech manages to push up even though his apple is 0:01:17.360 --> 0:01:19.040 a little like luster. We see the two year yield 0:01:19.080 --> 0:01:21.480 though on the higher side five basis points. 0:01:21.240 --> 0:01:22.080 On the front end. 0:01:22.360 --> 0:01:25.240 That means maybe we're less confident that the Federal Reserve 0:01:25.280 --> 0:01:27.600 will put on ice some of those rate cut rate hikes, 0:01:27.640 --> 0:01:30.640 even rate cut Remember Rich Clarender, he's the vice chair 0:01:30.680 --> 0:01:33.240 of the Fed today saying, look, we're not cunning anytime 0:01:33.319 --> 0:01:36.240 soon and likely to see on pause for the time being. 0:01:36.520 --> 0:01:38.240 Euro curring up by two tens percent. 0:01:38.280 --> 0:01:40.640 Interesting that inflationary pressures just dive back that little bit 0:01:40.640 --> 0:01:44.640 in the Eurozone. Meanwhile, Australian central Bank fighting inflation hard. 0:01:44.680 --> 0:01:47.640 This really is the global narrative inflation and how that 0:01:47.680 --> 0:01:50.920 affects global growth. But moving on, because well, one risk asset, 0:01:50.960 --> 0:01:54.960 one growth asset, might say Ashley having an interestingly volatile day, 0:01:55.000 --> 0:01:57.480 We're back to it with bitcoin and actually training higher 0:01:57.480 --> 0:01:59.480 twenty six thousand. It will still well below that thirty 0:01:59.480 --> 0:02:01.559 thousand nine that we managed to crack a little while ago. 0:02:01.880 --> 0:02:03.960 We were worried about some of the effects of the 0:02:04.000 --> 0:02:06.760 SEC focused on crypto, but actually managed to push higher 0:02:06.760 --> 0:02:08.840 about ten am there or thereabouts. 0:02:08.880 --> 0:02:10.680 So maybe people buying the diff at the moment ed. 0:02:11.360 --> 0:02:14.079 Yeah, very clearly moving to the downside. Is Apple off 0:02:14.080 --> 0:02:17.120 by three tents of percent. The street basically saying this 0:02:17.160 --> 0:02:19.639 is either sell the news or details of the Vision 0:02:19.680 --> 0:02:23.440 Pro mixed reality headset already priced into the stock. We 0:02:23.520 --> 0:02:26.680 will have a lot of day two reaction and analysis 0:02:26.680 --> 0:02:28.320 from that big WWDC event. 0:02:28.400 --> 0:02:29.960 I'm looking a lot of the chip sector as well. 0:02:30.000 --> 0:02:33.760 Taiwan Semiconductor This is the US ADRs up by two percent. 0:02:34.120 --> 0:02:37.720 They restated their four year capex guidance, coming at the 0:02:37.760 --> 0:02:40.240 low end of the previously guided range around thirty two 0:02:40.280 --> 0:02:43.400 billion dollars, having an impact in markets Applied materials the 0:02:43.520 --> 0:02:47.320 chip equipment maker higher by a percentage point have been lower. 0:02:47.440 --> 0:02:50.000 The idea being less capex spend by the world's biggest 0:02:50.000 --> 0:02:52.880 contract chip manufacturer would not be good news, but actually 0:02:52.880 --> 0:02:55.720 a rebound there. And sticking with chips Intel higher by 0:02:55.720 --> 0:02:57.760 four and a half percent. The company is selling one 0:02:57.800 --> 0:03:01.120 point five billion dollars worth of its stake immobilize the 0:03:01.200 --> 0:03:04.519 automotive tech name and with options to sell further shares 0:03:04.560 --> 0:03:08.720 as well. The other top top story is Coinbase shares 0:03:08.760 --> 0:03:12.359 down significantly after the US Securities and Exchange Commission the 0:03:12.400 --> 0:03:18.280 SEC said it's suing Coinbase for breaching securities law. Bloomberg 0:03:18.360 --> 0:03:22.520 also has fresh thoughts on this from SEC chair Gary Gensler, 0:03:22.560 --> 0:03:24.640 weighing in on the state of the crypto industry and 0:03:24.680 --> 0:03:27.760 the steps it needs to take to protect customer assets 0:03:27.960 --> 0:03:28.800 and its integrity. 0:03:28.800 --> 0:03:29.280 Have a listen. 0:03:30.240 --> 0:03:32.680 I think the crypto industry, more broadly, if it's going 0:03:32.720 --> 0:03:36.880 to have any success going forward, has to come into 0:03:36.920 --> 0:03:44.040 compliance with basic public policy about disclosure, about avoiding conflicts, 0:03:44.200 --> 0:03:51.440 about segregating properly segregating customer funds, and guarding against fraud manipulation. 0:03:52.560 --> 0:03:58.559 Without that, this whole area stands, the chances are collapsing 0:03:58.640 --> 0:03:59.800 like a house of cards. 0:04:00.440 --> 0:04:04.880 The SEC sues Coinbase. Let some packet further with Shnalie Bassett, Bloomberg, 0:04:04.880 --> 0:04:08.080 Wall Street REPORTERNALI What is it the core of the 0:04:08.120 --> 0:04:09.240 SEC's argument here? 0:04:10.120 --> 0:04:10.880 A few things here. 0:04:10.920 --> 0:04:13.040 We have to think about this claim that the SEC 0:04:13.120 --> 0:04:17.039 is making that they are acting as an unregistered broker 0:04:17.120 --> 0:04:20.320 dealer and listing on registered securities, which has been up 0:04:20.360 --> 0:04:23.280 for debate in the cryptocommunity when it comes to regulators 0:04:23.279 --> 0:04:26.640 at least for a long time now. Coinbase, we know 0:04:26.760 --> 0:04:28.520 says that a lot of the things that they've listed 0:04:28.560 --> 0:04:32.599 are not securities, while the Securities in Exchange Commission believes 0:04:32.600 --> 0:04:34.760 they are, and they have a very specific list here 0:04:35.080 --> 0:04:39.320 of tokens that they have referred to as believing as securities. 0:04:39.400 --> 0:04:42.240 When we've spoke to Brian Armstrong about this on the record, 0:04:42.560 --> 0:04:46.160 they have talked about the listing process they've had at Coinbase, 0:04:46.160 --> 0:04:49.640 so we know that they vigorously disagree with what the SEC. 0:04:49.320 --> 0:04:50.520 Is saying listened. 0:04:50.640 --> 0:04:53.240 I think there's another couple of twists and turns in 0:04:53.279 --> 0:04:57.960 this story too, because if you remember, Coinbase actually had 0:04:58.760 --> 0:05:01.960 looked to acquire, had acquired a broker dealer license that 0:05:02.000 --> 0:05:05.440 has been dormant with the SEC. So I expect that 0:05:05.560 --> 0:05:07.559 to come back up again because they have been talking 0:05:07.600 --> 0:05:09.440 about that in recent months. 0:05:09.440 --> 0:05:11.960 So it's not for lack of trying to become. 0:05:11.640 --> 0:05:14.640 A broker dealer as they are being sued by the SEC. 0:05:14.680 --> 0:05:14.880 Here. 0:05:15.640 --> 0:05:19.480 Let's just rud in the conversation to Binance, which of 0:05:19.480 --> 0:05:21.880 course was the news of yesterday. So the SEC is 0:05:21.920 --> 0:05:24.520 tackling all manners of exchanges at the moment. 0:05:24.800 --> 0:05:27.039 Yeah, and you have two different things happening on two 0:05:27.040 --> 0:05:29.560 different days. You have Binance, the largest exchange in the world, 0:05:29.800 --> 0:05:32.480 but some of the allegations being made against Binance are 0:05:32.560 --> 0:05:35.240 very different than the ones being made against Coinbase. Here 0:05:35.480 --> 0:05:37.920 at Binance, they are looking at all your customer rules, 0:05:37.960 --> 0:05:42.280 corrupted trading volumes, reliance on related party transactions. Another thing 0:05:42.360 --> 0:05:44.559 to look at with Binance is the difference in where 0:05:44.800 --> 0:05:47.880 the suit was filed. That is a very subtle difference, however, 0:05:47.920 --> 0:05:50.240 in the legal community here too, if you look the 0:05:50.279 --> 0:05:54.240 SEC had filed that suit in Washington versus New York State. Remember, 0:05:54.279 --> 0:05:57.040 there are ongoing investigations elsewhere when you look at the 0:05:57.160 --> 0:06:01.520 US government and how it's trying to look at Binance's operations, 0:06:01.520 --> 0:06:05.760 particularly because Binance as a whole is not on US ground. 0:06:06.120 --> 0:06:08.119 When it comes to coinbase, again, this is a matter 0:06:08.480 --> 0:06:11.799 more largely of not just unlisted securities or the allegations 0:06:11.800 --> 0:06:14.480 of having unlisted securities. It is also the staking as 0:06:14.480 --> 0:06:16.600 a service, which as we know, is a pretty critical 0:06:17.120 --> 0:06:19.719 on ramp and the way we think about how people 0:06:19.720 --> 0:06:23.160 will engage in crypto moving forward. The other interesting thing 0:06:23.240 --> 0:06:26.720 is coinbas is based in the United States, publicly listed. 0:06:26.760 --> 0:06:30.240 The SEC allowed that to happen, and so there are 0:06:30.279 --> 0:06:32.760 different tensions going on here and the way that they 0:06:32.800 --> 0:06:36.159 are in fact litigated, will also be different. My sources 0:06:36.160 --> 0:06:39.640 are saying over Coinbase, not surprisingly, that they intend to 0:06:39.640 --> 0:06:43.039 defend themselves very vigorously, as what you would expect from 0:06:43.120 --> 0:06:46.960 a suit here that is not settled as it stands today, 0:06:48.120 --> 0:06:48.920 all right, thanks. 0:06:48.720 --> 0:06:51.279 To the bloomboation Aali Basset Wall Street report out there 0:06:51.640 --> 0:06:55.680 in New York. Meanwhile, venture capital giants Sequoia Capital is 0:06:55.720 --> 0:07:00.640 splitting global operations into three separate firms, is GPLIS Tensions 0:07:00.640 --> 0:07:04.080 between the US and China continue to SIMI let's get 0:07:04.080 --> 0:07:07.600 more details with Lazette Chapman covering all things venture capital 0:07:07.880 --> 0:07:12.400 for Bloomberg Technology. Let's start with Sekoia specifically. I kind 0:07:12.400 --> 0:07:14.280 of feel like the writing's been on the wall for 0:07:14.360 --> 0:07:17.560 this firm or three separate entities for some time. 0:07:19.040 --> 0:07:20.640 Yeah. I think that's that's right. 0:07:21.080 --> 0:07:23.320 This has been a rough it just kind of going 0:07:23.360 --> 0:07:27.200 back here, Sequoia has had a very tough year. They've 0:07:27.200 --> 0:07:31.880 had a lot of challenges from you know, challenges related 0:07:31.880 --> 0:07:35.160 to the change structure right before the public markets tanked, 0:07:35.400 --> 0:07:39.280 to their backing of Twitter, to their their backing of 0:07:39.760 --> 0:07:43.920 FDx FTX, the largest crypto implosion that you guys have 0:07:44.000 --> 0:07:45.920 been talking about on the show on and off and 0:07:45.960 --> 0:07:47.800 on and off, and so they've had a lot of 0:07:47.880 --> 0:07:51.800 issues this past year, increased tensions from Washington d C 0:07:52.080 --> 0:07:55.040 to really clamp down on what they're doing in China, 0:07:55.080 --> 0:07:58.480 what they have been doing there in terms of supporting 0:07:58.520 --> 0:08:02.000 investments there, both directly from their US partners and through 0:08:02.000 --> 0:08:06.880 their limited partners through who they convinced to invest in 0:08:06.960 --> 0:08:11.120 its Sequoia China operations two decades ago have all come 0:08:11.160 --> 0:08:12.440 together to this moment. 0:08:12.960 --> 0:08:14.360 So it's been building for a while. 0:08:14.720 --> 0:08:15.920 But then the ripple. 0:08:15.600 --> 0:08:20.040 Effects is that Kose light speeds China partners as well 0:08:20.080 --> 0:08:23.120 as DST Global. Do we expect that others will have 0:08:23.240 --> 0:08:26.920 to make similar moves? Is this a very individual, idiosynclassic event. 0:08:28.440 --> 0:08:30.920 There has been mounting pressure, i'd say for the past 0:08:31.120 --> 0:08:31.680 year or so. 0:08:31.720 --> 0:08:33.520 It's really intensified in the past. 0:08:33.240 --> 0:08:38.200 Few months on the part of Washington lawmakers to crack 0:08:38.320 --> 0:08:42.959 down on investors here in the US that are backing 0:08:43.360 --> 0:08:48.640 Chinese startups that are focused on sensitive technologies AI, quantum 0:08:48.760 --> 0:08:53.240 autonomous drones and other areas that could have a military application, 0:08:53.559 --> 0:08:56.200 and in fact do in many cases. You look at 0:08:56.280 --> 0:08:58.720 DGI drone. Now to your question, is this just the 0:08:58.800 --> 0:09:01.040 ripple effect. Is this the big ginning of more to come? 0:09:01.400 --> 0:09:01.679 Again? 0:09:01.760 --> 0:09:03.800 We don't have that's a great question. 0:09:03.920 --> 0:09:07.080 We don't haven't heard anything from light Speed and Kochwu 0:09:07.160 --> 0:09:09.640 and some of the other US based investors who have 0:09:09.720 --> 0:09:11.439 also made big bets there. 0:09:11.920 --> 0:09:15.560 But there is activity on the hill. 0:09:15.640 --> 0:09:18.920 There is an EO and executive order which is expected, 0:09:20.000 --> 0:09:21.959 and it has been expected. 0:09:21.440 --> 0:09:23.200 For some time and has not yet come through. 0:09:23.520 --> 0:09:25.760 So what that EO is going to look like and 0:09:25.800 --> 0:09:28.560 whether it's the first step of many or the final 0:09:28.920 --> 0:09:30.480 will will help answer that question. 0:09:30.600 --> 0:09:31.160 Caroline. 0:09:31.640 --> 0:09:31.840 Yeah. 0:09:32.080 --> 0:09:35.560 The policy landscape perspective is that Bloomberg has reported the 0:09:35.600 --> 0:09:40.000 President is considering limiting outbound investment to China. When you 0:09:40.040 --> 0:09:43.320 and I Laze are out in the valley at events whatever, 0:09:43.360 --> 0:09:48.439 speaking to venture capitalists, there's also this ethical and philosophical 0:09:48.480 --> 0:09:53.720 consideration either about taking money from Chinese LPs or deploying 0:09:53.720 --> 0:09:56.480 capital into Chinese startups. Just tell us what you're hearing 0:09:56.559 --> 0:09:57.120 on that front. 0:09:58.200 --> 0:10:01.000 Well, one of the biggest that's a great point. 0:10:01.000 --> 0:10:02.280 One of the biggest things that you and I have 0:10:02.360 --> 0:10:05.040 both been hearing has been this bickering kind of between 0:10:06.200 --> 0:10:10.920 you know, vcs that are really investing and focusing on 0:10:11.080 --> 0:10:14.720 defense technology and national security applications. That seem to be 0:10:14.760 --> 0:10:17.800 the loudest voices in the room. These are ones including 0:10:18.720 --> 0:10:24.400 Founder's Fund and Andrews and Horowitz through their American Dynamism Fund, 0:10:24.679 --> 0:10:30.880 that are looking at US competition in these emerging technologies 0:10:30.920 --> 0:10:33.960 and the applications that it could have for for military. Now, 0:10:34.240 --> 0:10:36.720 you know, in terms of what this, what this means 0:10:36.720 --> 0:10:40.000 and kind of that tension between those firms, we haven't 0:10:40.000 --> 0:10:43.040 heard anything yet from from any partners as to, you know, 0:10:43.080 --> 0:10:45.240 whether this this split up is enough or. 0:10:45.200 --> 0:10:47.760 Not, but there is concern. 0:10:47.559 --> 0:10:51.520 About about the support that US money is giving a 0:10:51.559 --> 0:10:54.000 lot of firms. I think it's worth noting that it's 0:10:55.400 --> 0:10:57.600 that that one thing that that Koya did not mention 0:10:57.679 --> 0:11:00.400 in this is what's going to happen to their US 0:11:00.600 --> 0:11:03.839 partners that still have an interest in the fund. So 0:11:03.920 --> 0:11:06.720 that's have already made They've made these investments years and 0:11:06.760 --> 0:11:11.000 years ago. I'm thinking about TikTok, I'm thinking about Dji 0:11:12.080 --> 0:11:14.880 and other ones where they have billions and billions of 0:11:14.960 --> 0:11:17.920 dollars but it's illiquid, and they made these investments at 0:11:17.920 --> 0:11:20.000 a time that it was legal. So now we're looking 0:11:20.040 --> 0:11:23.640 at a situation where they have this money but they 0:11:23.679 --> 0:11:26.440 can't necessarily get it out right now, and that's not 0:11:26.480 --> 0:11:28.679 even the focus of their announcement today, but that's kind 0:11:28.720 --> 0:11:31.080 of the elephant in the room to some extent, and 0:11:31.120 --> 0:11:33.600 they said, you know, hey, it's not geopolitical tensions that 0:11:33.640 --> 0:11:35.920 are pushing us. That they kind of downplayed that in 0:11:35.960 --> 0:11:41.199 some statements, but you know, it's kind of tough to 0:11:42.520 --> 0:11:44.640 avoid that when when any you. 0:11:44.600 --> 0:11:47.439 Know, I don't really know that that is going to 0:11:47.480 --> 0:11:48.480 be their final statement on it. 0:11:49.040 --> 0:11:50.640 Has that Chapman, We'll see. 0:11:50.679 --> 0:11:52.760 I'm sure they'll be plenty more reporting coming from you 0:11:52.800 --> 0:11:54.680 on all of this. We thank you so much for 0:11:54.679 --> 0:11:55.320 breaking it down. 0:12:02.960 --> 0:12:05.400 So in the same way that Mac introduced us to 0:12:05.480 --> 0:12:11.280 personal computing and iPhone introduced us to mobile computing, Apple 0:12:11.400 --> 0:12:16.000 Vision Pro will introduce us to spatial computing. This marks 0:12:16.040 --> 0:12:18.600 the beginning of a journey that will bring a new 0:12:18.640 --> 0:12:21.400 dimension to powerful personal technology. 0:12:22.520 --> 0:12:25.600 Tim cookber one day on after the Worldwide Developers Conference, 0:12:25.640 --> 0:12:28.600 I'm veiling the Apple Vision Pro and the era. 0:12:28.520 --> 0:12:32.760 Of spatial computing from more. Let's bring in judiask, principle. 0:12:32.440 --> 0:12:35.160 Analyst Forrester, who is jetted in on the Red Eye, 0:12:35.200 --> 0:12:37.960 having been at that event, So ten out of ten 0:12:38.200 --> 0:12:40.959 for all the effort to be made to describe to 0:12:41.080 --> 0:12:42.800 us what on our special computing. 0:12:42.440 --> 0:12:43.560 Is, thank you. 0:12:43.640 --> 0:12:43.840 Yeah. 0:12:43.960 --> 0:12:46.319 No, I had the opportunity to put on the it's 0:12:46.360 --> 0:12:49.240 not a headset, it's a spatial computing device and get 0:12:49.240 --> 0:12:51.679 a private demo, and I would tell you it impresses. 0:12:51.840 --> 0:12:54.480 It is It's like nothing I've ever tried before, and 0:12:54.520 --> 0:12:56.160 I've tried on a lot of headsets. 0:12:56.400 --> 0:12:56.640 Yeah. 0:12:56.679 --> 0:13:00.360 From the uh, the setup is easy, the inn face 0:13:00.440 --> 0:13:02.960 is very intuitive than for most devices. And then when 0:13:03.000 --> 0:13:05.120 you think about almost one hundred and eighty degrees field 0:13:05.120 --> 0:13:07.319 of view, it's you can't imagine it. 0:13:07.400 --> 0:13:08.880 So at three and a half thousand dollars, do you 0:13:08.880 --> 0:13:10.920 feel that that's the right price tag they're going for, 0:13:11.480 --> 0:13:15.160 you know, a luxury item before they go for complete 0:13:15.200 --> 0:13:16.760 compute power in everyone's hands. 0:13:16.920 --> 0:13:17.120 Yeah. 0:13:17.160 --> 0:13:19.400 So I think often that is the Apple strategy. And 0:13:19.440 --> 0:13:21.480 I think one of the other advantages of not calling 0:13:21.480 --> 0:13:25.040 it a headset is Apple computer costs anywhere from about 0:13:25.040 --> 0:13:26.880 eight or nine hundred dollars up to seven thousand. 0:13:27.000 --> 0:13:27.480 So this is. 0:13:27.440 --> 0:13:32.360 A mid range computing device, spatial computing device for Apple. 0:13:32.400 --> 0:13:34.079 It's not an expensive headset. 0:13:34.960 --> 0:13:36.719 Julie, I'm sorry, I've got to go back to this, 0:13:37.120 --> 0:13:40.640 the one question that everyone has. I was at APPLEWWDC 0:13:41.240 --> 0:13:45.319 as well. What is spatial computing? 0:13:46.360 --> 0:13:49.040 Yeah, it's three D, so I'll get Let me give 0:13:49.040 --> 0:13:50.920 you a few examples of what that means. So, in 0:13:50.920 --> 0:13:54.160 one example, I was what appeared to be on the 0:13:54.160 --> 0:13:56.920 top of a cliff above a fjord in Norway, and 0:13:56.960 --> 0:13:59.800 I was able to peer over. I was also able 0:13:59.840 --> 0:14:02.120 to sit at the edge of a lake and listen 0:14:02.200 --> 0:14:04.920 to the lapping water on the shore while reading a book. 0:14:05.320 --> 0:14:07.959 I was a butterfly came at one point and landed 0:14:08.000 --> 0:14:11.280 on my finger, and a dinosaur gobbled my hand. So 0:14:11.320 --> 0:14:13.920 those are a few examples. But the other exciting thing 0:14:13.920 --> 0:14:16.480 about this new device is that it can take photos 0:14:16.480 --> 0:14:19.400 and it can take videos. So I watched children having 0:14:19.400 --> 0:14:21.880 a birthday party. And to allow consumers to create this 0:14:21.960 --> 0:14:24.320 kind of videos on their own, we haven't seen something 0:14:24.360 --> 0:14:25.560 like this in a very long time. 0:14:26.360 --> 0:14:28.400 What jumped out on me when I got up close 0:14:28.440 --> 0:14:31.640 and personal with the Vision Pro was the appendage, the 0:14:31.640 --> 0:14:34.600 battery pack and the gray cable running from it. 0:14:34.640 --> 0:14:35.440 What did you make of that? 0:14:36.400 --> 0:14:38.000 Well, it's so a couple things. 0:14:38.000 --> 0:14:40.440 So one you know, the concern with a device like 0:14:40.480 --> 0:14:42.240 this that we're not calling a headset is always the 0:14:42.240 --> 0:14:44.520 weight of the device. So everyone's looking for ways to 0:14:44.560 --> 0:14:46.680 take any kind of weight or size out of it. 0:14:46.760 --> 0:14:49.200 So as it is now, the device is about one 0:14:49.280 --> 0:14:51.800 pound and so that's on the head, and then the 0:14:51.800 --> 0:14:54.160 battery pack is about the size maybe of an iPhone 0:14:54.240 --> 0:14:56.200 or an iPhone pro and it sits to the side. 0:14:56.720 --> 0:14:59.680 The battery life is two hours, I believe, and I've 0:14:59.720 --> 0:15:01.760 heard folks not that. But on the other hand, you're 0:15:01.960 --> 0:15:04.280 also unlikely to have this device on your head for 0:15:04.360 --> 0:15:07.160 more than one to two hours, and so I think 0:15:07.160 --> 0:15:10.720 they've engineered that just about right, that it's the battery 0:15:10.760 --> 0:15:13.120 pack's going to last longer than I'm likely to have 0:15:13.200 --> 0:15:14.640 this on my head for one session. 0:15:15.440 --> 0:15:18.600 You know, a Cara being at Apple Park paying close 0:15:18.640 --> 0:15:22.120 attention to the keynote the presentation. There was a lot 0:15:22.120 --> 0:15:24.960 of emphasis on the idea that the Vision Pro can 0:15:25.000 --> 0:15:28.120 do lots of things that are accessible on the iPad 0:15:28.320 --> 0:15:31.680 and iOS, that all that great stuff. It's ready to go, 0:15:32.920 --> 0:15:34.760 and given the price point, I thought that was interesting. 0:15:35.120 --> 0:15:37.280 Yeah, I think it's a very smart strategy because if 0:15:37.280 --> 0:15:40.560 you look at the VR headset market today, it's primarily gaming, 0:15:40.920 --> 0:15:44.440 it's education, it is a little bit of fitness, and 0:15:44.480 --> 0:15:47.400 then meta is hopeful for some social media. If you 0:15:47.400 --> 0:15:49.920 look at the strategy that Apple is taking with their device, 0:15:50.280 --> 0:15:54.280 it's tapping into media consumption, which is far far easier 0:15:54.320 --> 0:15:56.120 for consumers to get up and get running and get 0:15:56.120 --> 0:15:58.920 going and have enjoyment from the device. And it also 0:15:58.960 --> 0:16:02.320 taps into the Apple one services that so many of 0:16:02.360 --> 0:16:04.680 their customers are already buying. If you think about it, 0:16:04.800 --> 0:16:07.800 typical Apple smartphone owner, more than ninety percent of them 0:16:07.800 --> 0:16:09.920 also own an Apple computer, more than half of them 0:16:09.960 --> 0:16:11.960 own a tablet, a third of them own an Apple 0:16:12.000 --> 0:16:15.240 Watch or a one of the smart speakers, and so Apple, 0:16:15.600 --> 0:16:17.040 I don't know if you want to call them enthusiasts. 0:16:17.040 --> 0:16:19.600 People who own Apple products tend to own the many 0:16:19.640 --> 0:16:22.240 products within the ecosystem, and so when they use something 0:16:22.280 --> 0:16:24.280 like the Apple one services, they get the benefit of 0:16:24.360 --> 0:16:26.800 using those devices. You know, that service across all of 0:16:26.840 --> 0:16:30.400 the devices they own. So very easy, quick startup and 0:16:30.640 --> 0:16:33.920 very easy, fast utility and value to the consumers what 0:16:33.960 --> 0:16:34.880 this device will deliver. 0:16:35.120 --> 0:16:38.080 Judy ask jet Setting from Forster Research. We thank us 0:16:38.080 --> 0:16:40.080 so much. I have more on this later. Of course, 0:16:40.160 --> 0:16:44.760 we've got AI Officionada CEO, Magic Leap, peggiejansonet. 0:16:44.800 --> 0:16:45.720 And also coming up. 0:16:45.760 --> 0:16:49.240 Startup Instabace makes use of open AI, large language models 0:16:49.600 --> 0:16:52.640 and nabs a two billion dollar evaluation the process. More 0:16:52.640 --> 0:16:54.840 on that next with the CEO and at Budwatch. 0:16:55.000 --> 0:17:13.360 This is Bloomberg Business Services. 0:17:13.400 --> 0:17:16.800 Startup Instabase has raised a new round of funding, doubling 0:17:17.000 --> 0:17:20.160 its valuation to two billion dollars, a deal boid by 0:17:20.160 --> 0:17:24.000 the companies you solve new generative AI tools in its 0:17:24.000 --> 0:17:27.359 suite of corporate products. Let's bring in the CEO and and. 0:17:27.920 --> 0:17:30.200 Bardwade for more. Welcome to the program. 0:17:30.240 --> 0:17:30.920 Coatter, we're here. 0:17:32.440 --> 0:17:34.320 Basically you're building on GPT four. 0:17:35.080 --> 0:17:37.600 We use GPT three point five and GP point five 0:17:37.720 --> 0:17:40.719 and for both as part of five product moving fraideword. 0:17:40.800 --> 0:17:44.480 Yes, what was the attractiveness of using that foundation model 0:17:44.920 --> 0:17:47.119 when you were thinking about your future use case and 0:17:47.160 --> 0:17:48.640 functionality so. 0:17:48.600 --> 0:17:50.960 Earlier we use smaller language models. And one of the 0:17:51.000 --> 0:17:53.080 requirements in that case is if you want to make 0:17:53.080 --> 0:17:55.359 it word for like diverse set of problems, you have 0:17:55.440 --> 0:17:58.000 to find tune thoise models where basically retrain it on 0:17:58.040 --> 0:18:00.120 customer data like you have to take a few more sample. 0:18:00.520 --> 0:18:01.840 This one can work out of the box. 0:18:01.920 --> 0:18:04.200 So for example, I can just take the same model 0:18:04.240 --> 0:18:06.919 and apply it for legal discovery use case, or for 0:18:07.000 --> 0:18:11.480 loan processing, or for writing poetry, So you don't need 0:18:11.520 --> 0:18:14.480 to kind of like retrain or find you unit for 0:18:14.520 --> 0:18:16.520 every single use case. Which is a very very very 0:18:16.560 --> 0:18:19.800 valuable stuff for our customers speacause now they can use 0:18:19.840 --> 0:18:20.320 it from data. 0:18:23.720 --> 0:18:29.000 Overall, the focus that you've made on productivity and the 0:18:29.200 --> 0:18:32.240 idea that this is going to sort of revolutionize, this 0:18:32.320 --> 0:18:34.280 is what the market seems to be gripping onto the 0:18:34.320 --> 0:18:37.520 fact that AI is going to add inject trillions of 0:18:37.560 --> 0:18:39.760 dollars of productivity into the overall economy. 0:18:39.760 --> 0:18:41.560 Do you buy into that and do you think that the. 0:18:41.480 --> 0:18:44.000 Efficiency is right here right now and you're able to 0:18:44.119 --> 0:18:47.200 sell this sort of product easily into your product into 0:18:47.240 --> 0:18:48.240 your overall client base. 0:18:49.480 --> 0:18:51.479 Yes, I do believe so, and I think I'll give 0:18:51.480 --> 0:18:55.200 you an example along the spectrum of like from individuals 0:18:55.240 --> 0:18:59.080 to small businesses to LARTI enterprises like currently, AI has 0:18:59.119 --> 0:19:01.720 reached to the point where where like for people like 0:19:01.880 --> 0:19:04.200 us as an individual, if you want to file taxes, 0:19:04.240 --> 0:19:06.080 we can give all the documentsage can generate the tax 0:19:06.119 --> 0:19:07.960 filing for US, saving like a lot of time. And 0:19:08.000 --> 0:19:10.360 you can find like hundreds of huge cases of similar kind. 0:19:10.800 --> 0:19:13.080 Now let's take an example of like small business. Let's 0:19:13.080 --> 0:19:15.359 say you are a legal firm and you have to 0:19:15.560 --> 0:19:19.320 do like you provide immigration you know, sort of like 0:19:19.400 --> 0:19:22.000 farm filling or immigration services. Now you can collect all 0:19:22.000 --> 0:19:24.280 the data from your customers and AI can read all 0:19:24.320 --> 0:19:27.400 of those stuff and generate automatically the farm filling, saving 0:19:27.440 --> 0:19:29.879 a ton of time. And we already work with like 0:19:30.119 --> 0:19:32.680 Larly enterprises. In fact, you know four of the top 0:19:32.720 --> 0:19:35.080 banks are our customers in the US. Globally, we have 0:19:35.080 --> 0:19:38.600 several customers like a standard chartered NatWest, ACSA and so on, 0:19:39.240 --> 0:19:43.400 and mortgage processing or know your customer or client onboarding. 0:19:43.680 --> 0:19:45.840 We have been able to automate althose we are seeing 0:19:45.920 --> 0:19:50.160 that AI can significantly increage productivity both at individual level 0:19:50.240 --> 0:19:51.800 as well as at operational level. 0:19:52.160 --> 0:19:54.280 I can tell that being able to reel out all 0:19:54.320 --> 0:19:56.760 these current customers the adoption rate, that's going to be 0:19:57.119 --> 0:19:59.959 easier to raise funds and that sort of an environment. 0:20:00.040 --> 0:20:02.520 But this is a difficult environment to raise funds. How 0:20:02.640 --> 0:20:04.639 quickly could you raise them? Was that the amount that 0:20:04.680 --> 0:20:08.000