WEBVTT - Tech Earnings and Bitcoin Rally 0:00:00.760 --> 0:00:01.600 From Mahart. 0:00:01.600 --> 0:00:06.040 We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:06.400 --> 0:00:09.800 This is Bloomberg Technology with Caroline Hyde. 0:00:09.520 --> 0:00:10.440 And Ed Ludlove. 0:00:23.480 --> 0:00:25.919 I'm Parlinehider Bloomberg's World headquarters in New York. 0:00:26.120 --> 0:00:28.760 And I'm Ed Ludlow in San Francisco. This is Bloomberg 0:00:28.840 --> 0:00:29.800 Technology coming up. 0:00:30.000 --> 0:00:33.919 Full earnings coverage ahead, we break down results from sales Force, 0:00:33.960 --> 0:00:35.760 Snowflake Paramount to name. 0:00:35.640 --> 0:00:39.199 But a few, plus Bitcoin pushes toward a record high 0:00:39.240 --> 0:00:42.880 amid massive inflows into exchange traded funds. We'll get to 0:00:42.880 --> 0:00:46.320 read on the state of digital currencies amid that rally, and. 0:00:46.440 --> 0:00:49.720 Apple facing weak demand for the iPhone in China as 0:00:49.800 --> 0:00:52.440 resellers slashed the price of the latest model. We'll discuss 0:00:52.520 --> 0:00:55.160 that and so much more throughout the salbot. First, let's 0:00:55.240 --> 0:00:57.320 check in on these markets, and it's a macro feel 0:00:57.400 --> 0:01:00.720 to the day. We get that pceedflator, what is the 0:01:00.760 --> 0:01:03.680 inflationary pressure that the Federal Reserve is looking at? Came 0:01:03.720 --> 0:01:06.120 in bang in line with expectations, two point eight percent 0:01:06.360 --> 0:01:08.560 year on year in terms of inflatory pressure. Right for 0:01:08.640 --> 0:01:11.160 the Federal Reserve therefore to be pausing on any rate 0:01:11.240 --> 0:01:13.240 cuts but we hold up about five ten percent on 0:01:13.280 --> 0:01:15.600 the nasdacs and relief to the market. We're seeing tenure 0:01:15.640 --> 0:01:18.280 yields come down some three four basis points in fact, 0:01:18.319 --> 0:01:20.479 down across the curve, and I'm looking at a volatility 0:01:20.520 --> 0:01:23.039 index of fear gauge that shrinks by less than a point. 0:01:23.080 --> 0:01:24.960 We're at thirteen handle. Moving on and have a look 0:01:25.000 --> 0:01:27.640 at what you were just outlining their ed Really where 0:01:27.680 --> 0:01:29.800 the action has been is on the risk Asseler choice 0:01:29.840 --> 0:01:31.280 of the technology show, which is Bitcoin. 0:01:31.319 --> 0:01:32.479 We're up almost four. 0:01:32.360 --> 0:01:35.560 Percent, sixty two sixty three thousand, let's call it. Remember 0:01:35.560 --> 0:01:38.560 sixty nine thousand dollars is the previous record back in 0:01:38.560 --> 0:01:39.520 November twenty twenty one. 0:01:39.560 --> 0:01:42.200 Where are you looking on the micro so a. 0:01:42.200 --> 0:01:44.280 Lot in the earnings context, but when it comes to 0:01:44.400 --> 0:01:47.440 tech Snowflake is the big mover. It's down eighteen percent 0:01:47.560 --> 0:01:49.520 or so in the session, but on track for its 0:01:49.600 --> 0:01:53.440 biggest drop on record. Two pieces of news, really, Kevin Supman, 0:01:53.520 --> 0:01:57.040 the CEO, is stepping down. He will be replaced by 0:01:57.120 --> 0:02:01.000 ex Googler Shrida Ramaswami. But also the sales outlook that 0:02:01.040 --> 0:02:03.240 they gave for the current period, even at the high 0:02:03.320 --> 0:02:06.200 end of the range, it's like twenty million dollars below 0:02:06.720 --> 0:02:09.480 what the street was expecting in terms of consensus, And 0:02:09.560 --> 0:02:13.480 the story for Snowflake was sharp deceleration and growth in 0:02:13.520 --> 0:02:16.040 twenty twenty three. They didn't do enough to say we're 0:02:16.080 --> 0:02:19.320 on the upward trajectory moving forward into twenty twenty four. 0:02:19.520 --> 0:02:21.400 There's a lot more happening as well. In the Arnie's 0:02:21.400 --> 0:02:24.120 context's a kind of mixed bag of different companies that 0:02:24.200 --> 0:02:26.079 will get to throughout the show. The first is Paramount 0:02:26.160 --> 0:02:29.079 is actually up four point eight percent. Sales declined mid 0:02:29.160 --> 0:02:32.120 single digits in the quarter gone ad weakness, but they 0:02:32.200 --> 0:02:35.240 called it the AD slump is over, we bottomed out, 0:02:35.360 --> 0:02:37.680 we're rebounding. We'll talk about it later in the program. 0:02:37.880 --> 0:02:40.160 Hb's now down one percent. It's kind of traded a 0:02:40.200 --> 0:02:45.160 bit choppy this morning. Look specifically at sales of PCs 0:02:45.200 --> 0:02:48.520 to consumers. The street expected them to return to growth, 0:02:48.880 --> 0:02:51.079 but sales fell one percent in that category. It's a 0:02:51.160 --> 0:02:53.480 concern even though they're saying twenty twenty four will be 0:02:53.600 --> 0:02:56.679 better on the customer or corporate side. Then salesforce is 0:02:56.680 --> 0:02:59.840 actually up one point five percent. It's outlook for the 0:03:00.120 --> 0:03:04.040 year suggests annual growth of full year fiscal twenty five 0:03:04.400 --> 0:03:06.840 ten point eight percent. I want to go very specific 0:03:06.880 --> 0:03:09.440 with the numbers, ten point eight percent. The reason that's 0:03:09.480 --> 0:03:13.519 important is that they grew just above eleven percent last year. 0:03:13.800 --> 0:03:16.840 So in other words, we expect decelerating growth. That's not 0:03:16.960 --> 0:03:18.679 what the street wanted to hear. But we got a 0:03:18.760 --> 0:03:21.120 first ever dividend and a buyback. How many times are 0:03:21.160 --> 0:03:24.000 we going to keep saying that divvy buy back stocks 0:03:24.080 --> 0:03:24.760 up one and a half. 0:03:24.639 --> 0:03:28.160 Percent, And let's dig in therefore, with an expert who 0:03:28.240 --> 0:03:30.320 is across all of those numbers ed and you bring 0:03:30.440 --> 0:03:33.280 us the takeaways. Brody Ford was there with a closer 0:03:33.320 --> 0:03:35.800 look at some of these results, and Brody, there does 0:03:35.880 --> 0:03:38.840 seem to be this worry about the forecast front and center. 0:03:40.600 --> 0:03:43.400 Yeah, everybody wants some more growth, there's no question. With 0:03:43.560 --> 0:03:47.920 Snowflake in particular, they're always an interesting one because, unlike 0:03:47.960 --> 0:03:51.200 a lot of these software companies that charge you five 0:03:51.440 --> 0:03:54.040 ten year contracts so you can predict it pretty well, 0:03:54.520 --> 0:03:56.880 they charge you based on how much you use the product, 0:03:57.040 --> 0:04:00.440 kind of like AWS or an Azure, which means every earnings, 0:04:00.760 --> 0:04:02.960 it's a little volatile. We're not sure what we're gonna 0:04:03.000 --> 0:04:07.119 get and so this forecast, it made people feel anxious 0:04:07.200 --> 0:04:10.560 because it showed that growth continue to decelerate. You mix 0:04:10.720 --> 0:04:13.120 that with losing one of the most famous CEOs in 0:04:13.200 --> 0:04:15.440 the industry, that's going to be a shakeup. 0:04:17.000 --> 0:04:21.720 Okay, let's talk about salesforce. This is I just go 0:04:21.960 --> 0:04:24.120 so nerdy on the details. I use MDL on the 0:04:24.160 --> 0:04:27.080 Bloomberg terminal, and we're talking about a few basis points. 0:04:27.120 --> 0:04:29.440 But my understanding, Brody, and you and I were talking 0:04:29.440 --> 0:04:31.440 about this on the phone, is where do we find 0:04:31.440 --> 0:04:34.640 the AI read through? We didn't you know they outperformed 0:04:34.640 --> 0:04:37.320 in the quarter gone to end twenty twenty four fiscal 0:04:37.400 --> 0:04:40.320 twenty four with like eleven point two percent growth, and 0:04:40.360 --> 0:04:43.320 they're guiding us to ten point eight percent growth this year. 0:04:43.760 --> 0:04:46.880 What is or what is not happening for salesforce right now? 0:04:48.400 --> 0:04:51.520 Yeah, And it's funny because they are guiding to that 0:04:51.640 --> 0:04:54.440 above ten percent number when it comes to the non 0:04:54.600 --> 0:04:58.240 consulting revenue. When it comes to top line, their forecast 0:04:58.320 --> 0:05:01.520 has slipped below that psychologue called ten percent mark, which 0:05:01.920 --> 0:05:03.600 you know, all of a sudden, then you become a 0:05:03.880 --> 0:05:05.760 value stock rather than a growth stock. 0:05:06.440 --> 0:05:07.120 Salesforce. 0:05:07.240 --> 0:05:09.880 The story they're telling is that AI is going to 0:05:09.920 --> 0:05:12.760 buffet the need for a lot of their solutions. The 0:05:12.880 --> 0:05:17.360 early stage one will be in their data products, data cloud, warehousing, 0:05:17.920 --> 0:05:21.080 Tableau for analytics, and that did outperform, right, I mean, 0:05:21.120 --> 0:05:22.440 they are seeing uptick there. 0:05:22.520 --> 0:05:23.159 They say it's the. 0:05:23.240 --> 0:05:27.320 Highest organic growth of any product they've had. But still 0:05:27.520 --> 0:05:30.960 I think the AI impact on these numbers is relatively low, 0:05:31.000 --> 0:05:32.360 and I think that's the case for a lot of 0:05:32.400 --> 0:05:35.839 these application software makers. They want to tell an AI story, 0:05:35.920 --> 0:05:39.960 but in reality, it's still very early days. It is 0:05:40.080 --> 0:05:43.320 hard to quantify the exact impact at this point, even 0:05:43.360 --> 0:05:45.040 if in the earnings call you're going to hear those 0:05:45.080 --> 0:05:46.640 two letters over and over again. 0:05:47.240 --> 0:05:47.880 We certainly are. 0:05:47.960 --> 0:05:48.520 Brady Ford. 0:05:48.560 --> 0:05:50.279 We thank you so much for bringing us the inside 0:05:50.320 --> 0:05:53.160 track on both Snowfake Salesforce. Let's dig in with both 0:05:53.200 --> 0:05:56.840 those companies and the broader ecosystem right now, of Lisa, 0:05:56.880 --> 0:06:00.760 welcome Rebecca webtman CEO and principle of Valua, Technology analyst 0:06:00.800 --> 0:06:04.320 firm providing research advisory services to leaders with a focus 0:06:04.400 --> 0:06:06.200 on the value of technology. So talk to us about 0:06:06.240 --> 0:06:09.360 the value proposition at Salesforce right now. From your perspective, Rebecca, 0:06:09.560 --> 0:06:12.560 are the offering the right kind of offerings at the 0:06:12.640 --> 0:06:14.960 right price point with the right focus on margin. 0:06:16.080 --> 0:06:18.279 Sure, Caroline, thanks thanks for having me today. 0:06:18.520 --> 0:06:21.760 So Salesforce I got the timing right with data Cloud right, 0:06:21.920 --> 0:06:25.839 just as everyone recognizes that data and metadata is actually 0:06:25.839 --> 0:06:28.960 what makes AI work. They've got data Cloud out production 0:06:29.080 --> 0:06:32.000 and they're doing a lot today from a penetration perspective, 0:06:32.240 --> 0:06:34.880 offering credits to customers to get out there and start 0:06:34.920 --> 0:06:37.760 to adopt data cloud so they can start to experience 0:06:38.240 --> 0:06:41.440 the benefits of AI. Salesforce has some runway in other 0:06:41.520 --> 0:06:43.800 areas as well, and I think what we've seen too 0:06:43.960 --> 0:06:45.400 in the past years they've. 0:06:45.360 --> 0:06:48.560 Pushed to improve efficiency and improve. 0:06:48.400 --> 0:06:52.400 Margins is offerings like the AWS marketplace and other more 0:06:52.560 --> 0:06:55.240 self service things that should help them keep their cost 0:06:55.279 --> 0:06:56.680 of sales under control as well. 0:06:57.200 --> 0:07:00.320 It's interesting whenever I hear, for example, marketing coming my 0:07:00.440 --> 0:07:02.800 way from a Salesforces or is about the safety the 0:07:02.960 --> 0:07:05.799 using of your own proprietary data here, and that seems 0:07:05.839 --> 0:07:09.560 to be the sale from Snowflake too. But sticking with Salesforce, ultimately, 0:07:10.160 --> 0:07:13.880 what's your view on whether the incumbents win in this space. 0:07:13.960 --> 0:07:16.440 The fact that they've already got the deals with so 0:07:16.600 --> 0:07:18.360 many of these corporates that they're going to be the 0:07:18.400 --> 0:07:20.760 ones that win out these AI offerings, or whether these 0:07:20.840 --> 0:07:23.560 challenges that are coming up and being VC backed can 0:07:23.680 --> 0:07:24.679 make some begin roads. 0:07:25.440 --> 0:07:27.680 You know, it's interesting that you asked that, Caroline, because 0:07:27.680 --> 0:07:30.360 we just stood a study asking people about whom they 0:07:30.400 --> 0:07:33.320 would trust with their AI and what we found is 0:07:33.400 --> 0:07:37.800 that it wasn't necessarily those established vendors. Buyers were more 0:07:37.960 --> 0:07:41.520 likely to trust AI solutions that came back from organizations 0:07:41.560 --> 0:07:45.680 that had traceable data and clear ethics and privacy policies, 0:07:46.160 --> 0:07:48.280 not necessarily an established vendor. 0:07:48.360 --> 0:07:50.360 So there's still a lot of room for innovators out there. 0:07:52.120 --> 0:07:54.960 This is how I think about AI and salesforce. Right, 0:07:55.320 --> 0:07:59.320 AI means they can charge more, they're more expensive premium products, 0:08:00.000 --> 0:08:02.840 adds value to what they already do that did not 0:08:03.000 --> 0:08:04.800 show up in their numbers. Do you agree with that? 0:08:06.160 --> 0:08:07.840 I would agree with that, But I think too what 0:08:07.880 --> 0:08:10.760 we're seeing is a penetration strategy for data cloud today 0:08:11.120 --> 0:08:13.400 as customers need to make that leap into it. So 0:08:13.560 --> 0:08:16.240 you see with the new marketing cloud offering where they 0:08:16.280 --> 0:08:19.240 get data cloud credits, they're going to work on building 0:08:19.280 --> 0:08:22.080 that up in true salesforce fashion, get them to try 0:08:22.160 --> 0:08:24.320 and get excited about it and then really be able 0:08:24.360 --> 0:08:25.160 to turn on the switch. 0:08:25.880 --> 0:08:29.720 Oh, we know all about true Salesforce fashion, but here's 0:08:29.760 --> 0:08:33.800 the reality. There's a company that grew mid twenty percent 0:08:33.960 --> 0:08:36.760 range every year for a decade and it's going the 0:08:36.800 --> 0:08:40.440 wrong way. Snowflake had a sharp deceleration in its growth 0:08:40.559 --> 0:08:44.320 last year. It's not giving us evidence that it's turning around. 0:08:45.080 --> 0:08:49.920 What's your conclusion on the corporate enterprise spending environment based 0:08:50.000 --> 0:08:51.680 on the results that those companies gave. 0:08:52.920 --> 0:08:55.240 Well, I think Snowflake made it pretty clear when they 0:08:55.320 --> 0:08:58.800 said this is recovery, not rebound. We're looking at a 0:08:58.880 --> 0:09:02.240 new era in correcting. On the software space. I do 0:09:02.440 --> 0:09:06.040 think Salesforce has some runway with its other products like Slack. 0:09:06.360 --> 0:09:08.760 There's still a big revenue opportunity there that they haven't 0:09:08.800 --> 0:09:09.280 quite at. 0:09:10.320 --> 0:09:12.880 Okay, so we have a change of leadership at Snowflake. 0:09:13.440 --> 0:09:14.319 Does that excite you? 0:09:16.320 --> 0:09:20.080 The market never likes the surprise change in CEOs. 0:09:19.960 --> 0:09:22.640 Right, But I think too. Frank was brought in to 0:09:22.760 --> 0:09:25.160 grow at a certain point, just like you did with Service. Now, 0:09:25.720 --> 0:09:28.040 a streeter is a different person, and as we look 0:09:28.040 --> 0:09:31.040 at Snowflake moving from just cloud storage to more of 0:09:31.080 --> 0:09:34.559 an AI company. Certainly Shreeter has the chops and the 0:09:34.679 --> 0:09:36.360 experience that make him a good. 0:09:36.200 --> 0:09:37.079 Person in that spot. 0:09:39.000 --> 0:09:42.079 All right, CEO and principle of Valoir, Rebecca Edam and 0:09:42.120 --> 0:09:44.960 greats have you on the program. Really good wide range 0:09:44.960 --> 0:09:47.560 of analysis on many different companies coming up on the program. 0:09:47.800 --> 0:09:49.880 We're going to switch from the equity markets to bitcoin 0:09:50.000 --> 0:09:52.560 risk asset of choice and crypto markets more broadly, we're 0:09:52.559 --> 0:09:55.079 going to discuss all of that and more with Framework 0:09:55.200 --> 0:09:59.120 Bench's Vance Spencer. That's neck, but there are other stocks 0:09:59.160 --> 0:09:59.880 on the move, Carra. 0:10:00.080 --> 0:10:01.600 There are and there are more earnings to come. 0:10:01.640 --> 0:10:03.640 If you thought it was all over after the bell, 0:10:03.679 --> 0:10:05.120 we're going to be looking at for what Dell has 0:10:05.160 --> 0:10:05.559 to report. 0:10:05.760 --> 0:10:07.520 We're up seven tenths of a percent ahead of those 0:10:07.600 --> 0:10:08.040 numbers you. 0:10:08.120 --> 0:10:10.480 Look back, and of course we've got the focus on HPE. 0:10:10.600 --> 0:10:12.480 We've already had HPS you were running us through at 0:10:12.480 --> 0:10:14.640 the start of the show. Currently at one point eight percent, 0:10:14.679 --> 0:10:16.600 and I understand the CEO will be joining the network 0:10:16.640 --> 0:10:20.600 tomorrow now. Soundhown Ai another darling in the AI spies, 0:10:20.880 --> 0:10:24.520 up two hundred and twenty percent so far this year 0:10:24.760 --> 0:10:28.199 for up another seven percent. Can this company deliver the 0:10:28.280 --> 0:10:31.160 exuberance that we see factored into the share price from 0:10:31.200 --> 0:10:32.280 New York, from San Francisco. 0:10:32.280 --> 0:10:33.360 This is Bloomberg Technology. 0:10:42.400 --> 0:10:44.760 Look, let's check on other risk assets today because they 0:10:44.800 --> 0:10:47.120 are higher decidedly, so we are on a tear when 0:10:47.120 --> 0:10:47.920 it comes to crypto. 0:10:48.160 --> 0:10:49.320 Could we be eyeing the. 0:10:49.360 --> 0:10:51.920 Sixty nine thousand dollars handle that we had previously at 0:10:51.960 --> 0:10:55.360 record numbers for bitcoin currently training up at sixty three thousand, 0:10:55.400 --> 0:10:57.640 as you'll see. But it's not just Bitcoin getting the love. 0:10:57.800 --> 0:11:00.040 It's being spread through some of the other areas. I 0:11:00.040 --> 0:11:02.600 think theoryum up significantly, up two point three on the day, 0:11:02.600 --> 0:11:04.280 but we're hitting A three thousand, four hundred and sixty 0:11:04.360 --> 0:11:07.040 five and other Layer one protocols. I think a Solana 0:11:07.120 --> 0:11:09.079 also doing particularly well. Look at that more than eleven 0:11:09.120 --> 0:11:11.720 percent on the day. There is much love more broadly 0:11:11.960 --> 0:11:14.600 in the cryptosphere. Look at what's happening in the equity 0:11:14.679 --> 0:11:17.000 side of the equation though as well, because as some 0:11:17.200 --> 0:11:19.920 of these underlying assets do well well, if you're holding 0:11:20.000 --> 0:11:21.319 or if you're mining, they're. 0:11:21.160 --> 0:11:22.400 Doing particularly well for you as well. 0:11:22.480 --> 0:11:24.800 I mean, we know key Hoddler in chief in the 0:11:24.880 --> 0:11:27.280 equity market is of course MicroStrategy and they're up three 0:11:27.280 --> 0:11:30.959 point three percent. Now, interestingly, on the downside have been Marathon. 0:11:31.040 --> 0:11:32.600 Now this is on the back of their numbers. Many 0:11:32.679 --> 0:11:35.520 worrying about the accounting practices and ultimately whether or not 0:11:35.600 --> 0:11:38.199 they're just showing an uplift to their overall earnings because 0:11:38.200 --> 0:11:41.079 they're able to show the current increase in value of 0:11:41.120 --> 0:11:43.760 the underlying holdings a bitcoin. It's that some fifteen percent, 0:11:43.920 --> 0:11:46.240 some an has felt that the numbers didn't hit their mark. 0:11:46.320 --> 0:11:48.800 And remember these stocks have run up in recent weeks 0:11:48.800 --> 0:11:49.160 and months. 0:11:49.320 --> 0:11:51.720 We're looking also at r platforms on the downside by 0:11:51.760 --> 0:11:54.200 more than nine percent, probably in sympathy with the other 0:11:54.280 --> 0:11:56.559 miner that is Marathon. But it's notable that at the 0:11:56.600 --> 0:11:59.280 moment ed there is this supply demand dynamic that just 0:11:59.320 --> 0:12:01.560 seems to be working in bitcoin in particular's favor. 0:12:02.400 --> 0:12:04.920 All right, let's keep digging into everything crypto and bringing 0:12:04.960 --> 0:12:07.920 Van Spencer, co founder of the Web three focus venture 0:12:08.000 --> 0:12:12.040 firm Framework Ventures one point four billion in assets under management. 0:12:12.320 --> 0:12:15.400 You carry summed it up really nicely. First of all, 0:12:15.840 --> 0:12:18.559 we've moved slightly beyond just bitcoin to a kind of 0:12:18.640 --> 0:12:25.120 broader positivity in digital assets. And then the supply demand equation. 0:12:25.760 --> 0:12:27.720 Just give me a health check right now of how 0:12:27.800 --> 0:12:34.520 you feel. General sentiment is towards cryptocurrencies extremely positive, to 0:12:34.600 --> 0:12:35.200 say the least. 0:12:35.360 --> 0:12:37.920 I mean, if you think about the nine bitcoin ETFs 0:12:37.960 --> 0:12:41.079 that are active right now, they're on pace to buy about. 0:12:40.800 --> 0:12:42.080 A million bitcoin per year. 0:12:42.640 --> 0:12:44.880 I have it up on my other screen, but there's 0:12:44.920 --> 0:12:47.679 about one point nine million bitcoin total on all of 0:12:47.760 --> 0:12:51.599 the exchanges worldwide, and so something's got to give. And 0:12:51.679 --> 0:12:54.800 this is what's different in this cycle versus the previous cycles, 0:12:55.400 --> 0:12:58.480 where you know, we didn't have Larry Fink buying eighty 0:12:58.520 --> 0:13:01.920 five thousand bitcoin in the last twenty trading days, and 0:13:02.120 --> 0:13:04.920 so these ETFs are a watershed moment. There are eleven 0:13:05.000 --> 0:13:07.080 years in the making. That was when the first application 0:13:07.280 --> 0:13:10.439 was filed, and we've got ether up next. It's a 0:13:10.480 --> 0:13:13.199 May twenty ninth approval or deny update. We think it 0:13:13.240 --> 0:13:16.719 will be approved. It's basically the same case, and it's 0:13:16.760 --> 0:13:19.839 a much smaller and much more reflexive asset. And the 0:13:19.960 --> 0:13:21.679 last thing I'll say is that there's a ton of 0:13:21.720 --> 0:13:24.800 work that's happened since you know, the big crash that 0:13:24.840 --> 0:13:27.800 happened in twenty twenty two. We've got DeFi really firing 0:13:27.840 --> 0:13:30.079 starting to produce earnings. We've got gaming starting to bring 0:13:30.120 --> 0:13:33.280 in a lot of people. The ecosystem is extremely coherent. 0:13:33.559 --> 0:13:35.719 It's kind of hard to fade just all of the 0:13:35.800 --> 0:13:36.600 work that's happened. 0:13:36.920 --> 0:13:40.880 So I feel good you take on the face of it, 0:13:41.080 --> 0:13:43.040 just the movement in bitcoin. But one of the things 0:13:43.080 --> 0:13:46.280 we've been talking about this week is the offshoots right 0:13:46.440 --> 0:13:50.280 to other let's call them asset classes, but take NFTs. 0:13:50.600 --> 0:13:53.079 You look at the date of NFT volume in December, 0:13:53.640 --> 0:13:56.800 really close correlation with Bitcoin. The reason I'm glad to 0:13:56.840 --> 0:13:58.319 have you on the show, Vans is to me, it 0:13:58.360 --> 0:13:59.959 seems like a lot of that is related to what's 0:14:00.040 --> 0:14:02.800 happening in gaming, an area that your firm is really 0:14:02.840 --> 0:14:03.319 focused on. 0:14:05.600 --> 0:14:08.880 I mean, gaming is probably the most positive story in 0:14:09.440 --> 0:14:12.120 crypto right now, and it's a story that's again been 0:14:12.280 --> 0:14:14.280 years in the making. But all the games that were 0:14:14.320 --> 0:14:16.719 funded in that twenty twenty one twenty twenty two run 0:14:17.120 --> 0:14:19.880 have just started to launch, and one in particular, Pixels, 0:14:20.120 --> 0:14:22.560 has about four hundred thousand daily active wallets. That's the 0:14:22.600 --> 0:14:25.120 biggest blotching application by far right now in terms of 0:14:25.240 --> 0:14:27.800 user count. And so we're moving kind of beyond this 0:14:28.080 --> 0:14:31.680 prosumer you know, whale driven crypto economy into something that's 0:14:31.720 --> 0:14:34.080 more mass market. And you know, people have been waiting 0:14:34.080 --> 0:14:36.360 for that adoption moment, and I think it's coming. I 0:14:36.600 --> 0:14:38.680 think it might already be here. And so you've got 0:14:38.680 --> 0:14:42.880 all these different narratives really firing. The ETFs gaming DeFi 0:14:43.200 --> 0:14:47.680 eth what's the bare case. I mean, maybe the ETF 0:14:47.760 --> 0:14:51.440 inflows stop, but the vast majority of O RaaS have 0:14:51.600 --> 0:14:54.320 not been able to allocate to these yet. And the 0:14:54.440 --> 0:14:56.600 numbers that we hear are one to three percent. That's 0:14:56.600 --> 0:14:59.000 what Fidelity says, you know, of the portfolio that you 0:14:59.040 --> 0:15:01.240 should have in crypto, well, that equates to about one 0:15:01.320 --> 0:15:03.600 hundred and fifty billion dollars coming into this space over 0:15:03.640 --> 0:15:06.000 the next couple of years. And you know, we're one 0:15:06.000 --> 0:15:08.360 of the larger asset managers in crypto framework is and 0:15:08.840 --> 0:15:10.880 we've had the pleasure of buying you know, mid nine 0:15:10.920 --> 0:15:13.160 figures of crypto over the past two years. And liquid 0:15:13.200 --> 0:15:16.360 markets and this might sound strange, but it's actually hard 0:15:16.440 --> 0:15:19.440 to get the coins. These markets are not as liquid 0:15:19.480 --> 0:15:22.200 as people think. And so I think the open question 0:15:22.320 --> 0:15:24.040 is kind of what happens when that money comes in 0:15:24.960 --> 0:15:27.560 it could get, you know, wilder than people think. 0:15:27.760 --> 0:15:28.000 It is. 0:15:28.120 --> 0:15:32.280 My guess. I remember reading about you guys twenty twenty two. 0:15:32.400 --> 0:15:35.800 Hannah Millo was writing about how you were raising money 0:15:36.040 --> 0:15:38.360 at a time where everyone was raising money. You know, 0:15:38.760 --> 0:15:41.840 that was happening. It did not happen in twenty twenty three. 0:15:42.760 --> 0:15:46.160 Where are you focus now in the deploying of capital 0:15:46.280 --> 0:15:48.680 and your your kind of appetite to raise more funds. 0:15:51.480 --> 0:15:53.080 I don't know how much I can or cannot say 0:15:53.080 --> 0:15:54.360 about you know, our raising plans. 0:15:54.440 --> 0:15:57.040 It's just you and I on the show. Just give 0:15:57.080 --> 0:15:58.120 us to meet those events. 0:15:58.360 --> 0:16:03.400 Yeah, we raised four hundred million two weeks before Luna collapsed, 0:16:03.840 --> 0:16:06.360 and so you can imagine what that was like. And 0:16:06.480 --> 0:16:09.080 we spent that year buying you know, we called a 0:16:09.160 --> 0:16:11.240 lot of the capital in that fund, and you know, 0:16:11.600 --> 0:16:13.440 really nobody wanted to talk to us when we were 0:16:13.480 --> 0:16:15.800 buying eight at one thousand, But at thirty five hundred. 0:16:15.840 --> 0:16:18.240 People have now turned around and you know, all the 0:16:18.440 --> 0:16:20.760 LPs are excited and there's a lot more interest in 0:16:20.840 --> 0:16:23.120 this space. But let me put it in perspective for you. 0:16:23.600 --> 0:16:25.520 I was at a pension fund conference this week. It 0:16:25.600 --> 0:16:28.560 was a two day multi strategy multi asset class Pension 0:16:28.560 --> 0:16:31.640 fund conference. The crypto people got one panel at eight 0:16:31.720 --> 0:16:33.800 thirty in the morning, and you know, there's a ton 0:16:33.840 --> 0:16:36.640 of interest, but the pension funds and the largest endowments 0:16:36.680 --> 0:16:38.800 in the world are still behind on this stuff. And 0:16:39.040 --> 0:16:40.800 I do think in the fullness of time, when you 0:16:40.880 --> 0:16:43.240 look back and you think about what it might mean 0:16:43.320 --> 0:16:45.920 to miss the birth of an acid class, especially into 0:16:45.960 --> 0:16:48.840 an ETF style paradigm, a lot of those people are 0:16:48.920 --> 0:16:51.880 going to be pretty upset and wondering what happened. So 0:16:52.160 --> 0:16:53.160 I think we're early. 0:16:54.440 --> 0:16:54.760 All right. 0:16:54.840 --> 0:16:57.400 Framework VENs has co found event Spen, so really appreciate 0:16:57.480 --> 0:16:59.240 having you on the show. I'm glad there were some 0:16:59.320 --> 0:17:11.760 things you could time for talking tech. First off, Electronic 0:17:12.000 --> 0:17:15.080 Art said yesterday that it would be cutting five percent 0:17:15.119 --> 0:17:18.040 of its workforce that's about six hundred and seventy people, 0:17:18.480 --> 0:17:22.280 due to shifting customer needs and a refocusing of the company. 0:17:22.320 --> 0:17:25.600 Will also be halting development on a number of undisclosed 0:17:25.640 --> 0:17:28.800 titles and pulling back on its real estate holding. CEO 0:17:28.960 --> 0:17:32.080 Andrew Wilson told staff in a memo that the company 0:17:32.119 --> 0:17:36.200 would be quote moving away from development of future licensed 0:17:36.280 --> 0:17:39.680 ip that we do not believe will be successful in 0:17:39.800 --> 0:17:44.560 our changing industry. EA joined Sony, Microsoft, ten Cents, Riot Games, 0:17:44.720 --> 0:17:48.160 and other top studios and laying off employees as game 0:17:48.240 --> 0:17:52.880 development costs increase and finance. The world's largest crypto exchange 0:17:52.920 --> 0:17:55.840 said it recovered four point four billion dollars worth of 0:17:55.960 --> 0:18:00.320 digital assets for its users who mishandled their deposits within 0:18:00.400 --> 0:18:02.920 the past two years. Users can mishandle their funds in 0:18:03.000 --> 0:18:08.040 a variety of ways, including entering incorrect wallet addresses, depositing 0:18:08.200 --> 0:18:12.440 incompatible tokens, and problems from blockchain upgrades. That's according to 0:18:12.560 --> 0:18:16.080 Thursday's report. The cryptocurrency exchange said it resolved more than 0:18:16.160 --> 0:18:20.119 three hundred eighty one thousand cases of cryptocurrency that was 0:18:20.200 --> 0:18:24.199 deposited by users but not credited in twenty twenty two 0:18:24.520 --> 0:18:27.480 and twenty twenty three. Plus. Ali Barber is rolling out 0:18:27.520 --> 0:18:31.440 its second major price cut for cloud services in years, 0:18:31.680 --> 0:18:34.080 hoping to win back users from rivals like ten Cent 0:18:34.480 --> 0:18:38.320 competing to provide tools critical to training AI. The Chinese 0:18:38.359 --> 0:18:42.480 Internet Pioneer will slash prices starting Thursday on scores of 0:18:42.520 --> 0:18:45.600 internet based services by as much as fifty five percent 0:18:45.960 --> 0:18:48.480 or twenty percent on average. The cuts represent one of 0:18:48.520 --> 0:18:51.359 the more aggressive moves by the company to stay ahead 0:18:51.400 --> 0:18:53.840 of ten Cent and by do in the cloud business 0:18:53.880 --> 0:18:56.840 and risk triggering a price war in what's already a 0:18:56.920 --> 0:19:00.399 hotly contested set throughout in China. Caro, what are you Yeah, we. 0:19:00.560 --> 0:19:03.240 Talking in contestant sectors and ones that well might be 0:19:03.280 --> 0:19:03.880 feeling the heat. 0:19:03.960 --> 0:19:05.480 Let's talk about streaming. 0:19:05.400 --> 0:19:08.280 And focusing on Paramount says to see, actually a bit 0:19:08.320 --> 0:19:10.560 of a reprieve today, up three point three percent off 0:19:10.640 --> 0:19:13.720 the revenue for its direct to consumer streaming business Parwaermount 0:19:13.720 --> 0:19:18.080 plus beat expectations room meg Intelligence analyst Keitha. Ranganathan joins 0:19:18.160 --> 0:19:20.080 us now for more on the results, and well, there 0:19:20.240 --> 0:19:23.560 was some optimism really showing there, but ultimately the revenues 0:19:23.640 --> 0:19:25.840 the AD side still a cloud here. 0:19:27.160 --> 0:19:30.520 Yeah, absolutely, Caroline. So you know you're right in terms 0:19:30.560 --> 0:19:33.159 of the DTC business, which is the streaming business, there 0:19:33.200 --> 0:19:35.960 were some green shoots there. I think overall what we 0:19:36.080 --> 0:19:38.480 came off with was there are some tones of you know, 0:19:38.600 --> 0:19:42.080 stabilization in Paramount's results. I'm just not sure that it's 0:19:42.119 --> 0:19:44.320 going to be enough. You know, you do have the 0:19:44.400 --> 0:19:47.919 linear TV business, which brings in about fifty five percent 0:19:48.080 --> 0:19:51.040 of the revenue for the whole company almost ninety percent 0:19:51.080 --> 0:19:53.560 of its profits though, so there's obviously a lot of 0:19:53.600 --> 0:19:56.600 focus there, and that sector has just been so challenged 0:19:56.760 --> 0:19:59.560 just with cord cutting and kind of this whole movement 0:19:59.760 --> 0:20:01.960 to to streaming and you know, the movement of eyeballs 0:20:02.000 --> 0:20:05.320 from linear TV networks to all of the digital platforms, 0:20:05.359 --> 0:20:08.520 and so obviously the advertising dollars also moving away, so 0:20:08.640 --> 0:20:10.800 that market has been under a lot of stress. TV 0:20:10.880 --> 0:20:14.000 ads were down fifteen percent. You know, Paramount will get 0:20:14.040 --> 0:20:16.640 the benefit in the first quarter with the Super Bowl. 0:20:16.800 --> 0:20:19.159 There will be you know, some lingering benefits throughout the 0:20:19.240 --> 0:20:22.040 year with the political ad cycle, but that's not going 0:20:22.080 --> 0:20:26.000 to be enough because you know, the core advertising trends 0:20:26.200 --> 0:20:29.480 remain very, very challenged, and so yeah, that was definitely 0:20:29.640 --> 0:20:31.960 kind of that remains a pain point. But I think 0:20:32.040 --> 0:20:34.520 the bright spot is that, you know, the streaming metrics 0:20:34.560 --> 0:20:35.240 definitely look good. 0:20:36.960 --> 0:20:40.320 There's a lot going on in the background with Paramount Gita, 0:20:40.600 --> 0:20:42.880 and for me, it always comes back to the loss 0:20:42.920 --> 0:20:46.240 in the streaming business was more narrow than expected, but 0:20:46.359 --> 0:20:49.960 we don't have any better sense on how Paramount does 0:20:50.040 --> 0:20:53.879 anything organically or inorganically to make that business profitable. 0:20:55.680 --> 0:20:59.280 So they did articulate a strategy, and this was you know, 0:20:59.400 --> 0:21:01.200 this was I think one of the things that investors 0:21:01.240 --> 0:21:03.840 are kind of cheering a little bit this morning, because 0:21:04.119 --> 0:21:06.520 they said that they are hoping to get to paramount 0:21:07.000 --> 0:21:10.119 plus profitability domestic profitability by twenty twenty five. Now that's 0:21:10.119 --> 0:21:13.480 the first time that they've actually given us a time frame. Yes, 0:21:13.720 --> 0:21:16.600 losses have narrowed. They do seem to have some plans 0:21:16.640 --> 0:21:19.760 in place for cutting down costs, for kind of optimizing 0:21:19.840 --> 0:21:22.399 content costs across the board, both their linear TV networks 0:21:22.400 --> 0:21:25.400 as well as streaming. Again, I'm not sure that's enough 0:21:25.520 --> 0:21:27.640 to move the needle. We did see last week Warner 0:21:27.680 --> 0:21:31.959 Brothers Discovery actually posting a modest profit in its streaming business, 0:21:32.240 --> 0:21:35.639 but investors are still very, very skeptical that the profits 0:21:35.800 --> 0:21:39.880 on the streaming side can actually completely offset the losses 0:21:40.280 --> 0:21:41.880 on the linear TV side. 0:21:43.200 --> 0:21:46.280 Cutting your way to profit. Bloomeg Intelligence analystsiter rang an 0:21:46.280 --> 0:21:55.679 eighth and great to have you on the program. Welcome 0:21:55.720 --> 0:21:59.520 back to bloomboag Technology. Ed love low here in San Francisco, Caroline. 0:21:59.160 --> 0:22:01.200 Heid and Neo Les quick check on these markets said, 0:22:01.200 --> 0:22:04.960 because today the PCE number that favored view of inflationary 0:22:04.960 --> 0:22:07.240 pressures from the Federal Reserve was posted at eight thirty am, 0:22:07.520 --> 0:22:09.560 and it was a relief it came in where expectations 0:22:09.600 --> 0:22:11.680 were two point eight percent urinear growth in terms of 0:22:11.760 --> 0:22:14.639 inflationary pressure, the Fed seeming right to be pausing on 0:22:14.760 --> 0:22:17.159 any cuts. But that sort of relief that it came 0:22:17.240 --> 0:22:20.080 in as expected means that tech stocks push higher, up 0:22:20.080 --> 0:22:22.600 four tens a percent. Tenure yield comes down some three 0:22:22.640 --> 0:22:25.560 basis points, but actually sort of moving aside from any 0:22:25.600 --> 0:22:28.199 of the macro data points of late, Bitcoin has been 0:22:28.240 --> 0:22:30.520 on its own role over the last few trading days 0:22:30.520 --> 0:22:32.479 and weeks. As you know, we're currently at sixty two 0:22:33.080 --> 0:22:35.840 and fifteen, so clearly really trying to eye that new 0:22:35.880 --> 0:22:38.720 record high at supply demand dynamics continue. We'll dig into 0:22:38.760 --> 0:22:40.400 that in a moment. Was one of our VC guests. 0:22:40.400 --> 0:22:42.399 We're up two point eight percent. Move on and have 0:22:42.440 --> 0:22:44.560 a look at some of the individual movers because earnings 0:22:44.600 --> 0:22:46.159 have come thinking fast a lot for some of these 0:22:46.160 --> 0:22:48.200 software AI players that I want to shine a light on. 0:22:48.560 --> 0:22:50.400 OCTA massive move up some twenty percent. 0:22:50.440 --> 0:22:52.520 Now, this company's been under duress, remember a breach that 0:22:52.560 --> 0:22:55.119 happened recently. Now the numbers that came in from Octa 0:22:55.440 --> 0:22:57.920 seemed to give analysts some reprieve. They seem to be 0:22:58.040 --> 0:23:00.560 liking the fact that they're managing to upsale where they 0:23:00.600 --> 0:23:02.600 think the price point for this particular company is going. 0:23:02.840 --> 0:23:05.080 And subscriptions were sort of a relief over there, ju 0:23:05.160 --> 0:23:09.359 A Lingo up twenty two percent. Absolutely rampant growth that 0:23:09.440 --> 0:23:11.680 we're seeing at the moment in terms of revenues driving higher. 0:23:11.680 --> 0:23:13.960 People wanting to be learning the languages on this particular 0:23:14.040 --> 0:23:17.639 AI enabled platform. Maybe the Super Bowl advert did a 0:23:17.680 --> 0:23:19.640 little bit as well. We're looking at C three AI 0:23:19.880 --> 0:23:23.480 twenty four percent higher. This also a relief because many 0:23:23.560 --> 0:23:25.160 had thought that maybe this had just been an AI 0:23:25.320 --> 0:23:27.920 hype cycle. C THREEAI needed to prove that it's a 0:23:27.960 --> 0:23:30.800 subscription growth was really there, and it is and many 0:23:30.840 --> 0:23:33.080 an analyst therefore upgrading on the back of these numbers 0:23:33.119 --> 0:23:34.879 as well. So some big moves in some of these 0:23:34.960 --> 0:23:36.399 software and AI plays today ed. 0:23:37.320 --> 0:23:39.640 All right, we have some breaking news crossing the Bloomberg 0:23:39.760 --> 0:23:42.320 terminal and a red headline in the video games industry. 0:23:42.440 --> 0:23:46.840 Swedish video games outfit Embracer is going to sell its 0:23:46.920 --> 0:23:51.399 Saber subsidiary in a deal valued around five hundred million 0:23:51.520 --> 0:23:56.080 US dollars that according to a Bloomberg source. Let's bring 0:23:56.119 --> 0:23:59.280 in the reporter that just broke that story for Bloomberg, 0:23:59.359 --> 0:24:03.040 Jason strud This is an interesting one. I'm familiar with 0:24:03.119 --> 0:24:06.040 the names because I'm a longtime fan and player of 0:24:06.119 --> 0:24:08.359 Knights of the Old Republic, the Star Wars Going We 0:24:08.440 --> 0:24:11.280 used to play on PC, the OG and the second version. 0:24:11.600 --> 0:24:14.720 Tell us about the deal you're reporting on. Yeah, So 0:24:15.200 --> 0:24:16.320 it's happening as we speak. 0:24:16.440 --> 0:24:19.800 So this is going to be announced in a in 0:24:19.920 --> 0:24:23.520 the next week or two that Embracer Group is selling. Essentially, Saber, 0:24:23.560 --> 0:24:25.399 which is a big subsidiary of Embracer Group, is going 0:24:25.440 --> 0:24:26.040 to go private. 0:24:26.119 --> 0:24:27.400 So a little bit of context here. 0:24:27.760 --> 0:24:30.760 Embracer Group is the Swedish gaming conglomerate that made a 0:24:30.840 --> 0:24:32.560 lot of headlines a couple of years ago because it 0:24:32.640 --> 0:24:35.919 was buying up companies all across the video game industry, 0:24:36.000 --> 0:24:39.560 a huge spending spree back in the halcyon days of 0:24:39.640 --> 0:24:40.760 twenty twenty one, when the. 0:24:40.800 --> 0:24:42.960 Interest rates were low and buying was easy. 0:24:43.200 --> 0:24:45.520 But of course things have changed and Embraser Group has 0:24:45.560 --> 0:24:48.120 since embarked on a cost cutting initiative that has led 0:24:48.160 --> 0:24:50.800 to carnage across the video game industry and has shut 0:24:50.840 --> 0:24:53.920 down studios, laid people off, and now it's just looking 0:24:54.000 --> 0:24:55.520 to shed costs whenever possible. 0:24:55.600 --> 0:24:58.200 This is the latest move on that front. 0:24:59.119 --> 0:25:02.280 And overall, well, when you see these cancelation of projects, 0:25:02.320 --> 0:25:05.520 when you see ultimately companies doing deals like this, does 0:25:05.560 --> 0:25:07.680 it speak to some of the pressure points that we 0:25:07.720 --> 0:25:09.160 sing across the entire industry? 0:25:10.600 --> 0:25:11.280 It definitely does. 0:25:11.400 --> 0:25:13.639 And yes, just this year, this week alone, I mean 0:25:13.720 --> 0:25:16.160 we've just seen it's been a bloodbath. Sony has laid 0:25:16.280 --> 0:25:18.960 off nine hundred people. EA just said last night it 0:25:19.040 --> 0:25:21.520 was laying off more than six hundred people. Yeah, we're 0:25:21.520 --> 0:25:23.359 seeing our climate a lot of it. There are a 0:25:23.359 --> 0:25:25.880 few factors behind all of these layoffs, but I think 0:25:25.920 --> 0:25:28.560 the biggest one is that during the pandemic, when there 0:25:28.640 --> 0:25:30.760 was a lot of growth in the video game industry, 0:25:30.800 --> 0:25:33.679 a lot of these companies just swelled, they bloated, they 0:25:33.880 --> 0:25:36.600 hired too many people. And now they are kind of 0:25:37.000 --> 0:25:39.679 they're facing the math. They are looking at the numbers. 0:25:39.720 --> 0:25:41.680 The numbers have gone down a little bit. The growth 0:25:41.720 --> 0:25:44.360 hasn't been quite what it was when everybody was stuck 0:25:44.400 --> 0:25:47.640 at home playing video games. But the overhiring is still 0:25:47.760 --> 0:25:50.960 there and as always happens to people who actually made 0:25:51.000 --> 0:25:53.439 those decisions that are sticking around. It's the people who 0:25:53.480 --> 0:25:55.720 got hired who are suffering as a result of this. 0:25:56.760 --> 0:25:59.919 Adjacent the other top story that our alreadience is following 0:26:00.400 --> 0:26:04.399 is rock Star Games, the studio behind graand Theft Auto, 0:26:05.680 --> 0:26:09.400 telling its employees, according to your reporting, to come back 0:26:09.440 --> 0:26:12.480 to the office five days a week starting in April. 0:26:12.840 --> 0:26:17.280 What do you know about the decisions behind that move. Yeah, 0:26:17.400 --> 0:26:19.760 it's interesting. I think that in a lot of industries. 0:26:19.800 --> 0:26:22.000 A lot of industries obviously are grappling with this question 0:26:22.119 --> 0:26:25.440 of returning to the office after employees have gotten used 0:26:25.440 --> 0:26:29.440 to either working hybrid or working remotely. With the gaming industry, 0:26:29.600 --> 0:26:31.600 it's kind of it plays off on the topic we 0:26:31.680 --> 0:26:34.040 were just talking about, because the volatility of the video 0:26:34.080 --> 0:26:37.600 game industry is such that people have to uproot their 0:26:37.680 --> 0:26:40.720 lives constantly for new jobs, and so remote work is 0:26:41.240 --> 0:26:43.399 very much a shield against that volatility. And so for 0:26:43.480 --> 0:26:45.400 a company like Rockstar, which is one of the leading 0:26:45.480 --> 0:26:48.200 video game developers, to come out and say, hey, we 0:26:48.320 --> 0:26:50.240 need you all to come in five days a week 0:26:51.119 --> 0:26:53.800 really strikes kind of It's a big contrast between what 0:26:53.880 --> 0:26:59.679 we're seeing elsewhere. Yeah, Rockstar, they're Rationale here. It's largely 0:26:59.720 --> 0:27:03.159 because of security, and so they've suffered from some huge 0:27:03.320 --> 0:27:05.879 leaks of the next Grand Theft Auto game. There was 0:27:05.920 --> 0:27:08.120 one in twenty twenty two where a bunch of footage, 0:27:08.160 --> 0:27:10.280 early footage from the game got leaked and dropped on 0:27:10.320 --> 0:27:13.200 the internet. And then last year, last December, just a 0:27:13.240 --> 0:27:15.120 couple of months ago, and they were planning on releasing 0:27:15.200 --> 0:27:19.200 their latest their new trailer, their first trailer for GTA six. 0:27:19.960 --> 0:27:22.560 It was actually leaked on Twitter a few hours before 0:27:22.560 --> 0:27:25.920 it was due to go up. It was pretty ridiculous. Actually, 0:27:25.960 --> 0:27:27.879 it was leaked with like a giant chiron in the 0:27:27.920 --> 0:27:31.520 middle saying by Bitcoin. It was very very bizarre sequence 0:27:31.560 --> 0:27:33.920 of events. The game was the game is set in Florida. 0:27:34.080 --> 0:27:36.320 I joked at the time that it's the most Florida 0:27:36.440 --> 0:27:38.920 thing ever for the game to leak in that fashion. 0:27:39.000 --> 0:27:41.360 But this is one of the main reasons that they're 0:27:41.440 --> 0:27:43.880 doing this return to office because they believe that their 0:27:44.240 --> 0:27:47.480 security was compromised as a result of people working remotely. 0:27:47.880 --> 0:27:50.080 What's interesting, though, is we've seen it at other tech companies. 0:27:50.119 --> 0:27:52.560 I think of Grinder, who said look, come back to 0:27:52.640 --> 0:27:55.879 the office, and it actually helps them reduce their workforce 0:27:56.000 --> 0:27:58.640 with a more of a natural attrition version, because they're like, look, 0:27:58.640 --> 0:27:59.879 if you're not going to buy by some of a 0:28:00.800 --> 0:28:02.480 you need not come back. Is that kind of what's 0:28:02.520 --> 0:28:04.280 playing into this as well, Jason, even though they are 0:28:04.320 --> 0:28:05.560 playing up the security side. 0:28:06.400 --> 0:28:09.520 That is extremely an extremely common theory, I will say, 0:28:09.600 --> 0:28:11.840 and I've heard that not just attached to Rockstar, but 0:28:11.960 --> 0:28:14.639 also to a bunch of other companies. Lizard last year 0:28:14.840 --> 0:28:17.399 was big on return to office and one of the 0:28:17.480 --> 0:28:19.120 theories was, hey, is this just kind. 0:28:19.040 --> 0:28:19.959 Of a soft layoff? 0:28:20.080 --> 0:28:21.600 Is this a way that we can lay people off 0:28:21.680 --> 0:28:24.280 without actually laying people off because we know that X 0:28:24.320 --> 0:28:27.840 percent of people will leave when they're forced with the 0:28:27.920 --> 0:28:29.680 prospect of having to go back to the office five 0:28:29.720 --> 0:28:30.160 days a week. 0:28:30.200 --> 0:28:31.520 So very common theory. 0:28:31.840 --> 0:28:34.960 I don't have anything that can prove that, but it's 0:28:35.000 --> 0:28:37.919 certainly logical, Jason Shyer. 0:28:38.600 --> 0:28:41.480 Brilliant to have you across what is a very talkt 0:28:41.520 --> 0:28:44.640 of industry group today, across all of the different companies 0:28:44.960 --> 0:28:45.680 moving and shaking me. 0:28:45.760 --> 0:28:46.400 Thank you so much. 0:28:46.480 --> 0:28:48.960 Meanwhile, let's turn to Apple for a moment, because well, 0:28:48.960 --> 0:28:51.720 there's not some great price point action happening over in China. 0:28:51.880 --> 0:28:55.400 Resellers slashing the price of the iPhone fifteen models get 0:28:55.440 --> 0:28:56.920 this by as much as one hundred and eighty dollars, 0:28:57.040 --> 0:28:58.920 and it all seems to signal that we've got an 0:28:59.000 --> 0:29:02.520 unusually prolonged slump in demand and ed, this is more 0:29:02.600 --> 0:29:03.160 than we're used to. 0:29:03.360 --> 0:29:04.040 What took my. 0:29:04.160 --> 0:29:06.560 Attention was it actually some of this as dressed up 0:29:06.600 --> 0:29:09.560 as well deals to be made before International Women's Day. 0:29:09.640 --> 0:29:12.160 I haven't seen many deals being made my way for 0:29:12.320 --> 0:29:15.600 International Women's Day next week for objects to be cheaper 0:29:15.680 --> 0:29:17.840 than usual, but the fact that one hundred and eighty 0:29:17.880 --> 0:29:19.760 dollars does seem to be more than we usually see 0:29:19.800 --> 0:29:21.400 at this time of year in the lunar holidays. 0:29:22.040 --> 0:29:24.520 Yeah, there are different data sets that you can point 0:29:24.560 --> 0:29:26.600 to and try and draw a conclusion. The main one 0:29:26.680 --> 0:29:29.040 that the Bloomberg focuses on in the story Carro is 0:29:29.120 --> 0:29:32.760 that iPhone fifteen sales are just not doing as well 0:29:32.800 --> 0:29:35.959 as prior generations the iPhone fourteen in China, so an 0:29:35.960 --> 0:29:37.800 Ali barber's team or you can get one hundred and 0:29:37.800 --> 0:29:40.680 eighty dollars discount, but the difference this time around this 0:29:40.880 --> 0:29:44.880 year more domestic pressure right a handset from Huawei, you know, 0:29:45.000 --> 0:29:46.400 in the marketplace, and. 0:29:46.480 --> 0:29:47.880 Those headwinds just continue. 0:29:48.120 --> 0:29:50.560 We talk about some of the geopolitical tensions that have 0:29:50.640 --> 0:29:53.400 effect of course a supply side chain of Apple and 0:29:53.520 --> 0:29:56.160 more broadly demand too. We've got to think that there's 0:29:56.200 --> 0:29:59.920 been this government not perhaps the pr around it is 0:30:00.120 --> 0:30:03.520 been difficult to find the nuance, but ultimately governments or 0:30:03.880 --> 0:30:06.080 government affiliated companies not wanting you to bring in your 0:30:06.080 --> 0:30:08.800 Apple phone, wanting you to buy local, and Huilewey of 0:30:08.840 --> 0:30:11.040 course bringing out this incredibly powerful rival. 0:30:12.280 --> 0:30:16.200 The conclusion that Bloomberg Intelligence anlysts reach, it implies weakness 0:30:16.280 --> 0:30:19.479 in China. Okay, coming up on Bloomberg technology, how New 0:30:19.560 --> 0:30:22.400 York City might be poised to be the next major 0:30:22.520 --> 0:30:25.080 AI hub. That's according to Lux Capital. We're going to 0:30:25.080 --> 0:30:28.760 discuss with partner Grace Isford. That's next, Carol, what's happening 0:30:28.800 --> 0:30:29.360 in the markets. 0:30:29.520 --> 0:30:32.080 We're just going back to Apple for a moment, because 0:30:32.120 --> 0:30:35.320 this is a European related company, a Swiss chip maker 0:30:35.360 --> 0:30:38.320 in fact, absolutely plunging as you can see in European 0:30:38.400 --> 0:30:39.560 trading after. 0:30:39.400 --> 0:30:40.280 A major customer. 0:30:40.360 --> 0:30:43.600 Now analysts believe this customer to be Apple ed canceled 0:30:43.720 --> 0:30:47.640 the chip maker's key project around micro LEDs. So as 0:30:47.720 --> 0:30:49.920 this is a result impactment charges of up to nine 0:30:50.040 --> 0:30:52.920 hundred million euros. You can see the impact on that 0:30:53.000 --> 0:30:55.480 two day chart from New York, from San Francisco, this 0:30:55.560 --> 0:31:09.560 is Bloomberg Technology. Well you just saw that magnovograts is 0:31:09.600 --> 0:31:11.440 going to be on Bloomberg in a little while. And 0:31:11.840 --> 0:31:14.000 well that's because we're talking about crypto a lot at 0:31:14.000 --> 0:31:16.360 the moment. Bitcoin of course having quite the tear forty 0:31:16.400 --> 0:31:18.520 two percent on the nose over the last trading days 0:31:18.800 --> 0:31:20.600 of thirty days. And this is of course as we 0:31:20.680 --> 0:31:23.880 see demand supply ultimate imbalance, as we start to see 0:31:24.120 --> 0:31:27.000 the ETFs come to bear, and notably some of the 0:31:27.120 --> 0:31:30.320 talk of halving hamp maoning in April, someone who basically 0:31:30.400 --> 0:31:32.680 is at the intersection everything we're talking about at the moment, 0:31:32.720 --> 0:31:35.120 whether it's the nexus of web three, also of data 0:31:35.200 --> 0:31:38.840 infrastructure of AIML is Lux Capital partner Grace Isford, who 0:31:38.920 --> 0:31:42.080 joins us now for VC Spotlight. And what's so interesting 0:31:42.240 --> 0:31:45.320 is you were sort of very highly focused on what 0:31:45.480 --> 0:31:47.680 now seems to be all of our talking points at 0:31:47.720 --> 0:31:49.640 the moment when you first came to Lux in twenty 0:31:49.680 --> 0:31:52.280 twenty two, having been at canvas before that what are 0:31:52.280 --> 0:31:54.440 you making of the ecosystem in crypto when you're looking 0:31:54.440 --> 0:31:56.800 at putting VC dollars to work? Because yes, we can 0:31:56.880 --> 0:31:58.480 all think of it as some sort of asset that 0:31:58.560 --> 0:32:01.520 we can track and better and speculate, But what is 0:32:01.600 --> 0:32:04.120 the underlying building of infrastructure looking like right now? 0:32:04.400 --> 0:32:06.600 Ironically, it's the same building blocks for both. You know, 0:32:06.680 --> 0:32:10.000 who are the innovative technologists who are taking you know, 0:32:10.040 --> 0:32:13.280 cutting edge fundational principles, whether it's in cryptography or whether 0:32:13.320 --> 0:32:16.000 it's in applied machine learning, and taking that to solve 0:32:16.000 --> 0:32:18.640 a real problem for the end users. So, both the 0:32:18.680 --> 0:32:20.560 B to B infrastructure on the crypto side and the 0:32:20.600 --> 0:32:23.040 B to B infrastructure on the AI side, we continue 0:32:23.040 --> 0:32:24.720 to see a lot of exciting innovation. 0:32:25.160 --> 0:32:27.440 Okay, well, let's talk about the practical innovations that are 0:32:27.480 --> 0:32:30.200 being built. Maybe here you've just been to San Francisco. 0:32:30.880 --> 0:32:33.719 There's a lot of talk actually of how cryptography can 0:32:33.760 --> 0:32:36.840 be an answer to compute and access to compute when 0:32:36.880 --> 0:32:40.160 we are thinking of large language models and machine learning. 0:32:40.280 --> 0:32:41.800 Is that something you're seeing being solved for at the 0:32:41.840 --> 0:32:42.720 moment in both places? 0:32:42.880 --> 0:32:45.920 Well, certainly, actually, take our lex Portfolio company together AI. 0:32:46.040 --> 0:32:47.920 We actually led the seed in that company. They're based 0:32:47.960 --> 0:32:50.840 in San Francisco, but they're chief scientists Tredoo. He's actually 0:32:50.920 --> 0:32:52.840 moving to New York to be an assistant professor at 0:32:52.880 --> 0:32:54.760 Princeton and love to talk a little bit more about 0:32:54.760 --> 0:32:56.720 the New York theme there. But they are actually having 0:32:56.840 --> 0:33:00.320 decentralized compute in many ways versus using a centralized cloud 0:33:00.360 --> 0:33:03.320 provider in order to power that AI infrastructure stack. 0:33:04.440 --> 0:33:07.560 Great, let's have a little bit of healthy competition between cities, 0:33:07.600 --> 0:33:12.640 shall we. This week we published a documentary called Welcome 0:33:12.720 --> 0:33:15.360 to Cerebral Valley. And as you know, like right now, 0:33:15.480 --> 0:33:19.240 the line share of dollar or intellectual capital is here, 0:33:19.800 --> 0:33:23.440 but New York is growing both on the personnel side 0:33:23.480 --> 0:33:27.440 and attracting more dollars. What is lux Capital's attitude. 0:33:27.000 --> 0:33:30.280 Towards that the AI demand is unprecedented, both in San 0:33:30.320 --> 0:33:31.960 Francisco and New York, and I think you're going to 0:33:32.000 --> 0:33:35.120 see continued growth in both cities. Right sfal Continua Hub. 0:33:35.400 --> 0:33:37.880 New York is a really exciting and growing hub, both 0:33:37.920 --> 0:33:40.480 because of the demand we have here. Forty four of 0:33:40.560 --> 0:33:43.640 Fortune five hundred companies are headquartered right here in New York. 0:33:43.880 --> 0:33:45.880 There was a recent Unicorn Report where the number of 0:33:46.000 --> 0:33:48.640 unicorns in New York grows from three to one hundred 0:33:48.720 --> 0:33:51.640 over the last ten years. And you're seeing huge industries here, 0:33:51.880 --> 0:33:54.760 whether it's financial services or media. As it retains to 0:33:54.800 --> 0:33:57.960 New York specifically, there's a great talent be here. I 0:33:58.080 --> 0:34:00.880 just mentioned tread out from Together actually as moving here 0:34:00.920 --> 0:34:04.160 to New York. We've also seen several other great AI 0:34:04.280 --> 0:34:07.600 labs world class right here in New York. Nyu Jan Lacun, 0:34:07.800 --> 0:34:11.239 He's the chief medice scientist at Meta. He's also here 0:34:11.280 --> 0:34:14.040 in New York, and the Princeton and Columbia and Cornell 0:34:14.120 --> 0:34:15.080 labs are are bustling. 0:34:16.080 --> 0:34:18.680 One of the surprising headlines that caught my eye in 0:34:18.719 --> 0:34:21.239 the last couple of days was Jamie Diamond of all 0:34:21.320 --> 0:34:24.920 people saying that mayor's in Texas will phone them up 0:34:24.960 --> 0:34:27.160 and say what can we do to get more business? 0:34:27.680 --> 0:34:30.600 But you know, officials in New York City, according to 0:34:30.680 --> 0:34:33.480 Jamie Diamond, and not as business friendly. What is your 0:34:33.560 --> 0:34:35.879 kind of boots on the ground experience of that. From 0:34:35.960 --> 0:34:38.600 kind of a host city perspective. 0:34:38.520 --> 0:34:40.759 I've been seeing bustling innovation and I've been seeing a 0:34:40.760 --> 0:34:42.680 lot of people choosing to live in New York because 0:34:42.680 --> 0:34:45.200 they want to live here and going through whatever hoops 0:34:45.200 --> 0:34:47.440 they need to do to build an awesome company here. So, 0:34:47.520 --> 0:34:50.280 whether that's getting great talent out of major tech companies, 0:34:50.440 --> 0:34:52.359 whether that's getting a lot of new grads. We saw 0:34:52.440 --> 0:34:54.919 a six x increase in applicants according to a recent 0:34:55.000 --> 0:34:57.680 Handshag report over the last five years, wanting to move here. 0:34:57.880 --> 0:34:59.919 And we see a lot of international talent, right folks 0:35:00.000 --> 0:35:02.560 iming from Europe, both coming from Israel, all moving right 0:35:02.600 --> 0:35:03.560 here to New York City. 0:35:04.239 --> 0:35:07.400 What often will be said to some of the vcs 0:35:07.480 --> 0:35:09.600 that I speak to us chatting with able partners, for 0:35:09.640 --> 0:35:13.120 example yesterday, is that what New York has going through it, 0:35:13.280 --> 0:35:15.520 even if it's not comparable in terms of the share 0:35:15.560 --> 0:35:17.880 scale of money being raised quite yet or deployed here 0:35:18.440 --> 0:35:22.200 is diversity. And we have different industry groups here. It's 0:35:22.239 --> 0:35:23.839 interesting that a lot of the companies that you're backing 0:35:23.920 --> 0:35:25.759 seem to be in image generation, seem to be in 0:35:26.040 --> 0:35:29.080 sort of the advertising creative space. 0:35:29.160 --> 0:35:31.240 I think a Runway, for example, well. 0:35:31.160 --> 0:35:33.360 Runway right based here in New York, looks partnered and 0:35:33.520 --> 0:35:36.000 led the theory feed in that company. They are working 0:35:36.080 --> 0:35:38.719 hand in hand with filmmakers and with producers right in 0:35:38.760 --> 0:35:40.839 their offices in New York City, and so they're working 0:35:41.040 --> 0:35:43.719 not just to add AI as a side thing to 0:35:43.800 --> 0:35:46.840 their workflows, but integrate it directly into their workflow. And 0:35:46.880 --> 0:35:48.719 you've seen a lot of success with that, working with 0:35:48.800 --> 0:35:51.800 both for five hundred companies and those filmmakers in production. 0:35:52.400 --> 0:35:55.400 And I'm pretty sure a little bit of healthy nervousness 0:35:55.600 --> 0:35:58.399 coming from those industry groups that are seeing themselves being 0:35:58.560 --> 0:36:01.439 well and many would say disrupt by the pace of AI. 0:36:01.960 --> 0:36:03.800 Gratis Fords, So great to have her on just on 0:36:03.880 --> 0:36:05.920 the nexus of everything that's happening in a world at 0:36:05.960 --> 0:36:08.600 the moment, Lu's capital partner, and we're talking at to 0:36:08.640 --> 0:36:11.239 you about well another portfolio company of their right now. 0:36:12.280 --> 0:36:15.399 Yeah, Hugging Face. And actually, as a reminder, the big 0:36:15.440 --> 0:36:18.479 story we've been tracking this week is the fallout from 0:36:18.640 --> 0:36:23.719 Gemini alphabet or Google's generatorve AI text and image generating 0:36:23.880 --> 0:36:27.480 tool that has come in for criticism and elicited a 0:36:27.600 --> 0:36:32.080 response from Sunder Pitchi, the CEO of Google, who called 0:36:32.239 --> 0:36:36.000 some of the deficiencies unacceptable. Let's bring in Hugging Face 0:36:36.120 --> 0:36:40.000 Research and chief ethics scientists Margaret Mitchell Murrett. You have 0:36:40.080 --> 0:36:43.840 your own history with the academic body of Google that 0:36:43.920 --> 0:36:47.040 we can get into. But yeah, that's right. We're showing 0:36:47.160 --> 0:36:52.080 Sunder pitch Eye's statement right now about what happened with Gemini. 0:36:52.560 --> 0:36:54.040 The reason we really want to get you on the 0:36:54.080 --> 0:36:58.960 show is can this be fixed technologically speaking in the 0:36:59.040 --> 0:36:59.560 short term? 0:37:00.760 --> 0:37:01.839 Yeah, it actually can. 0:37:02.000 --> 0:37:04.760 So there's a few different approaches to handling the different 0:37:04.760 --> 0:37:06.760 ways that people are going to be using these systems, 0:37:07.080 --> 0:37:09.160 and one is to have a bunch of different models 0:37:09.239 --> 0:37:12.800 under the hood that end up figuring out what different 0:37:12.880 --> 0:37:18.000 users intent is and providing different kinds of responses based 0:37:18.040 --> 0:37:19.239 on what the user intent is. 0:37:19.560 --> 0:37:20.759 So it should be fixable. 0:37:21.239 --> 0:37:23.120 I'm a little surprised it's taking so long, but I 0:37:23.160 --> 0:37:23.759 guess we'll see. 0:37:26.080 --> 0:37:28.800 What I'm trying to reconcile in my mind is that 0:37:29.120 --> 0:37:33.320 Google is at the origin story of artificial intelligence, the 0:37:33.360 --> 0:37:36.800 body of R and D or academic work that happened 0:37:37.080 --> 0:37:39.320 more than a decade ago. How do we get to 0:37:39.440 --> 0:37:43.680 this point where they publish a tool where there is 0:37:43.760 --> 0:37:48.040 clear evidence that the model has some deficiencies and evidence 0:37:48.080 --> 0:37:48.719 of biases. 0:37:50.040 --> 0:37:53.080 Yeah, I mean, we've seen Google laying off a lot 0:37:53.120 --> 0:37:58.680 of people, laying off people who are experts in AI ethics, 0:37:58.680 --> 0:38:01.279 which really helps with the kind of issues that they're 0:38:01.360 --> 0:38:04.320 seeing now. I think that Google might be playing a 0:38:04.360 --> 0:38:08.160 bit of catch up, sort of trying to release things 0:38:08.280 --> 0:38:12.279 perhaps before they're fully ready, and also not necessarily having 0:38:12.320 --> 0:38:14.880 the right people at the table to make the decisions. 0:38:15.640 --> 0:38:17.600 So Google's in a very different position than it was, 0:38:17.680 --> 0:38:18.759 you know, twenty years ago. 0:38:19.719 --> 0:38:22.279 It's worth saying what side of the table you're coming 0:38:22.320 --> 0:38:24.640 from and your history with Google, because of course you 0:38:25.000 --> 0:38:28.080 co led Google's ethical AI team. 0:38:28.440 --> 0:38:30.439 You step down from that group. 0:38:30.520 --> 0:38:32.759 You're priate previously of course over at Microsoft, I mean 0:38:32.760 --> 0:38:34.960 you've been everywhere. You've moved over to hugging face to 0:38:35.000 --> 0:38:37.880 really drive the ethical perspective at that particular part of 0:38:37.920 --> 0:38:40.759 the business. But I'm interested is to the lackings, the 0:38:40.800 --> 0:38:42.840 failings that you saw a couple of years ago that 0:38:43.800 --> 0:38:45.800 drew your criticism and ultimately. 0:38:45.400 --> 0:38:46.280 As you left Google. 0:38:47.239 --> 0:38:49.600 Is that what's the edge hit When I think about 0:38:49.640 --> 0:38:51.400 the some of the issues that you say as to 0:38:51.520 --> 0:38:54.160 why this isn't getting fixed as quickly it seems to 0:38:54.200 --> 0:38:57.000 be from you your perspective, A question of personnel here 0:38:57.080 --> 0:39:01.240 and who's got the power to make decisions right right, Yeah. 0:39:01.120 --> 0:39:04.640 It's completely an issue of who's at the table. I mean, 0:39:04.719 --> 0:39:07.400 one of the things that so many UH women and 0:39:07.480 --> 0:39:10.080 people of color speak to in the AI ethics world 0:39:10.160 --> 0:39:12.560 is the need to think about how technology is going 0:39:12.680 --> 0:39:15.600 to be used, how it impacts different people. And we're 0:39:15.640 --> 0:39:19.080 really not seeing that kind of consideration in the way 0:39:19.160 --> 0:39:23.200 that these technologies are being unrolled. So it really seems 0:39:23.239 --> 0:39:26.560 to be that there isn't enough clear thinking about foresight, 0:39:26.960 --> 0:39:31.000 about context of use, about the social impact. And these 0:39:31.040 --> 0:39:33.400 are things that a lot of people who specialize in 0:39:33.680 --> 0:39:37.640 in things like AI ethics responsible AI m many of 0:39:37.719 --> 0:39:42.800 whom are underrepresented in technology. You know, we're we're not 0:39:42.880 --> 0:39:45.400 seeing this kind of insight, which means that there might 0:39:45.480 --> 0:39:47.480 not be the right people, and the people there might 0:39:47.520 --> 0:39:49.480 be more disempowered than they should be. 0:39:49.840 --> 0:39:52.799 And the model that this is then l unleashed upon 0:39:53.360 --> 0:39:55.719 is in an environment of a cultur wars, some might 0:39:55.800 --> 0:39:58.799 call it. Margaret, I'm interested though, what for me as 0:39:58.800 --> 0:40:03.360 a consumer could be made clearer? How can transformation, How 0:40:03.440 --> 0:40:06.680 can me understanding what's going on under the hood be 0:40:06.840 --> 0:40:07.680 better served to me? 0:40:07.800 --> 0:40:09.000 So I understand where. 0:40:08.880 --> 0:40:13.120 I perhaps can show my preferences, my needs my choices 0:40:13.160 --> 0:40:16.000 when it comes to the images being generated, right right. 0:40:16.400 --> 0:40:19.560 So one thing that actually people are familiar with with 0:40:19.760 --> 0:40:23.439 Google image search is when you type in some sort 0:40:23.440 --> 0:40:25.960 of query, some prompt to get a set of images, 0:40:26.840 --> 0:40:29.799 there's a bunch of different boxes you can select from 0:40:29.960 --> 0:40:33.000 that get at different things you might use. In the past, 0:40:33.080 --> 0:40:35.360 Google has actually been very good at this, trying to 0:40:35.440 --> 0:40:39.040 give users an option to specify the kinds of intents 0:40:39.239 --> 0:40:41.480 that they have in what they're trying to search for, 0:40:41.960 --> 0:40:45.800 and then further refining based on that. So that technology 0:40:45.880 --> 0:40:48.240 is there. It's something that Google actually has a history 0:40:48.440 --> 0:40:52.680 of developing and developing well. This same kind of approach 0:40:52.800 --> 0:40:55.800 could be put into any sort of chatbot system, be 0:40:55.880 --> 0:40:59.759 it more generative or not, where users are shown as 0:41:00.040 --> 0:41:03.200 a selection that they can choose among to get at 0:41:03.239 --> 0:41:05.560 the kinds of things that they would like. There's also 0:41:05.640 --> 0:41:08.080 the possibility to have a back and forth in order 0:41:08.560 --> 0:41:11.200 for the system to ask the user for a little 0:41:11.239 --> 0:41:15.160 bit more specificity. Users could potentially set preferences and the 0:41:15.239 --> 0:41:19.719 system could also show a variety of different things regardless 0:41:19.840 --> 0:41:23.799 of different boxes users might check. They could say, here's 0:41:23.800 --> 0:41:27.160 a historical image, here's the world, as it could be 0:41:27.640 --> 0:41:29.440 you know, let me know more about what you'd like 0:41:29.560 --> 0:41:31.759 to see practical takeaways. 0:41:31.960 --> 0:41:35.239 We really appreciate you for it. Margaret Mitchell of Hugging Face. 0:41:35.280 --> 0:41:38.360 Of course, she was previously founder and co led Google's 0:41:38.920 --> 0:41:44.040 ethical AI group. The SEC while it's investigating where the 0:41:44.080 --> 0:41:47.120 open Ai investors were misled as the startup went through 0:41:47.200 --> 0:41:49.920 a ferocious debate of a leadership last year. This is 0:41:49.920 --> 0:41:52.160 all being reported by the Wall Street Journal, citing people 0:41:52.200 --> 0:41:54.920 familiar with the probe. Now the Securities in Exchange Commission 0:41:55.040 --> 0:41:59.200 is studying internal communications by CEO Simulman in relation to 0:41:59.280 --> 0:42:01.719 his ouster reports said, now the SEC has sent a 0:42:01.760 --> 0:42:04.840 subpoena to the company in December, and our senior OpenAI 0:42:04.960 --> 0:42:08.120 officials to preserve internal documents now to regain his job, 0:42:08.200 --> 0:42:12.560 remember ed Altman agreed to an internal investigation among other conditions, 0:42:12.600 --> 0:42:13.680 and we get to see the outcome. 0:42:14.600 --> 0:42:17.320 Yeah, we wait the outcome. There are the private investors 0:42:17.400 --> 0:42:19.759 in a complex cap table, and then there are the 0:42:19.840 --> 0:42:23.600 Microsoft investors, because remember in the public markets, Microsoft shares 0:42:23.640 --> 0:42:26.359 reacted to the chaos which you and I both live through. 0:42:27.239 --> 0:42:31.120 Feels an age away, but of course there's still debate 0:42:31.239 --> 0:42:33.080 rages on. Meanwhile, That does it for this edition of 0:42:33.080 --> 0:42:33.960 Bloombog Technology. 0:42:34.840 --> 0:42:37.200 Big thanks to everyone who listens to the podcast. We 0:42:37.320 --> 0:42:38.560 know there are a lot of you out there. We're 0:42:38.600 --> 0:42:42.279 on Spotify, iHeart Apple, and the Bloomberg platforms. Gosh, what 0:42:42.360 --> 0:42:44.879 a week it's been. From San Francisco and New York City. 0:42:45.080 --> 0:42:46.320 This is Bloomberg Technology.