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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: From Mahart where innovation, money and power Collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 3: Live from New York and San Francisco. This is Bloomberg Technology,

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Speaker 3: and it's M and a Monday. AMD to buy server

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Speaker 3: maker z T Systems, and it's to fight back against

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Speaker 3: Nvidia in the data center space.

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Speaker 4: General Motors slashes software jobs after a big push to

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Speaker 4: bolster its digital prowess.

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Speaker 5: We have the Bloomberg exclusive.

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Speaker 3: And sports streaming platform Fubo continues to surge after rivals

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Speaker 3: were blocked from launching the Venue sports service a week

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Speaker 3: before rollout.

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Speaker 5: Let's get right to that AMD deal.

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Speaker 4: One piece of M and a four point nine billion

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Speaker 4: dollar deal to acquire server maker ZT. It's the best

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Speaker 4: performing stock on the Philadelphia Semiconductor Index again of almost

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Speaker 4: three percent.

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Speaker 5: But it was actually a pretty.

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Speaker 4: Slow snart start with that news breaking this morning.

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Speaker 5: What's this about?

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Speaker 4: It's about AMD's move into being a systems vendor, which

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Speaker 4: reminds us of another big name in that space.

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Speaker 3: Carra It does in King's Person who covers MD in

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Speaker 3: video of course, which is the elephant in the room

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Speaker 3: that AMD is trying to tackle here.

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Speaker 6: Yeah, no, that's absolutely right. In Video has basically made

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Speaker 6: it easier for all of its big customers to adopt

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Speaker 6: these systems. If you need a server, we'll give you

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Speaker 6: a server design. If you need networking, we'll give you networking.

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Speaker 6: We'll bundle everything together. We'll do a lot of the

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Speaker 6: engineering for you to split this open. Now what AMD

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Speaker 6: is saying, hey, we can do that too. Here are

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Speaker 6: some engineering capabilities that we've taken a hold of them,

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Speaker 6: and come and News argue.

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Speaker 4: We've used these numbers before, but they're worth recounting. AMD

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Speaker 4: will probably do four point five billion dollars of AI

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Speaker 4: accelerator sales this year, while in Video will do one

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Speaker 4: hundred billion dollars. And that gives you a sense of

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Speaker 4: where we're at. But on AMD side, M and A

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Speaker 4: is becoming a bit of a tool and a theme.

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Speaker 4: This is a second deal in a number of weeks

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Speaker 4: and months. What are they trying to add.

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Speaker 6: Yeah, it's all of these sort of engineering capabilities that

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Speaker 6: go beyond their core competence, which is to design chips.

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Speaker 6: They're basically saying, we will give you whether it's the software,

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Speaker 6: the models, the designs of the actual servers themselves will

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Speaker 6: give you. These things will help you to adopt our chips.

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Speaker 6: It's a facilitator if you like, and it's really what

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Speaker 6: n Video is doing.

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Speaker 4: Systems vendor, you did a good job in your first answer,

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Speaker 4: But what does that mean in reality in the real

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Speaker 4: world when we talk about training AI models with high

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Speaker 4: performance GPUs, what does that look like?

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Speaker 6: You have to think about a day center as not

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Speaker 6: a room full of computers, but as a computer. It's

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Speaker 6: almost like one entity in itself with all of the

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Speaker 6: chips and all of the servers all connected tightly together,

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Speaker 6: to all of the memory, to all of the networking.

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Speaker 6: Putting all of that together is extremely difficult if you

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Speaker 6: want it to work efficiently. So that's really what we're

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Speaker 6: talking about here. There are only a few companies that

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Speaker 6: can do that. Obviously, the Dells and the hps want

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Speaker 6: to offer that expertise as well, but that is the

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Speaker 6: sort of area that AMD is trying to step into.

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Speaker 3: Let's just talk about z t ZT systems. However, US

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Speaker 3: Brits are going to say it on the show. It's

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Speaker 3: a New Jersey based company. What do they keep, what

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Speaker 3: do they sell off? Who are the executives who come over?

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Speaker 6: Yeah, no, that's a good question, and there's a lot

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Speaker 6: of confusion on the call this morning as to what

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Speaker 6: exactly is going on. Company that has about ten billion

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Speaker 6: in revenue. That revenue is primarily from selling hardware. The

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Speaker 6: manufacturing operations that produce that high where are going to

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Speaker 6: be sold by AMD? AMD just wants about a thousand

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Speaker 6: engineers and those engineering leaders who basically show their customers

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Speaker 6: how to better implement AMD based systems. So there's going

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Speaker 6: to be a big breakup, and you know, AMD is

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Speaker 6: not going into the business of making servers.

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Speaker 7: We talked about this being m and a Monday.

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Speaker 3: There are some other big deals happening across different industries.

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Speaker 7: But how quisitive is Lisa Sue at this point?

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Speaker 6: Well, they put that in the release. They said, look,

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Speaker 6: we've spent you know, a billion dollars or so in

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Speaker 6: the last twelve months on acquiring capabilities that they're going

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Speaker 6: to make us a better company. And I think it's

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Speaker 6: reflective of the market that they're trying to push further

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Speaker 6: and further into They've got more money these days. Right,

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Speaker 6: They're a very solid company. That's doing well. They're solidly profitable,

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Speaker 6: have been for years, and the revenues are growing. So

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Speaker 6: she's trying to use that financial clout to basically make

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Speaker 6: a company stronger.

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Speaker 4: And in the time we've been speaking, AMD has just

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Speaker 4: hit a session high up three point four percent this

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Speaker 4: Monday morning.

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Speaker 5: Glomosi and King, thank you very much.

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Speaker 4: All comes is Investors are becoming more nervous about some

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Speaker 4: Nvidia downside tech profits are slowing. Tangible results from investments

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Speaker 4: in AI remain to be seen. Americprice Financial private wealth

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Speaker 4: advisor Jason Betts discusses the investor's view. And we've talked

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Speaker 4: about how the market in some ways is treading water.

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Speaker 4: In the first instance, the Jackson Hole this Friday, but

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Speaker 4: actually August twenty eighth and in video earnings is a

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Speaker 4: macro level event.

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Speaker 5: How do you approach that?

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Speaker 8: I mean, the first thing I'll say is, you know,

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Speaker 8: there's a saying that the devil's in the details, and

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Speaker 8: right now the devil is in the data as far

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Speaker 8: as the market is concerned, and that's actually refreshing in

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Speaker 8: my opinion. We've seen a fair amount of market complacency

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Speaker 8: through much of this year. Obviously, we saw the route

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Speaker 8: here at two and a half three weeks ago between

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Speaker 8: you know, weaker tech guidance, between the very lackluster jobs

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Speaker 8: report which carried over in the Monday, with the young

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Speaker 8: carry trade exacerbating all of that, the market through a

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Speaker 8: temperate tantrum. We've seen the data improve here a bit,

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Speaker 8: actually seen some pretty good data over the past couple

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Speaker 8: of weeks, and the market he's.

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Speaker 9: Clearly reacted positively to that.

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Speaker 8: So moving forward, everyone's going to have their eyes as

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Speaker 8: you said before on Jackson holl They're gonna have it.

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Speaker 8: We're gonna have our eyes on just just the rest

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Speaker 8: of the tech earnings here as well. So I'll have

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Speaker 8: my eyes on that and other than that's pretty much

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Speaker 8: business as usual.

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Speaker 4: In the first part of the earning season. The capital

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Speaker 4: expenditures data from the Hyperscalers was a clear story. The

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Speaker 4: bit that's less clear is the top line growth in

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Speaker 4: all of the Hyperscaler's customers.

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Speaker 5: Does that worry you?

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Speaker 4: Do you sort of analyze that part of the market.

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Speaker 8: Yeah, I mean there's always going to be a concern

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Speaker 8: about when valuations seem like they might be stretched, and

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Speaker 8: we're always going to be keeping a sharp eye both

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Speaker 8: on top line and and net earnings. So again, I'm

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Speaker 8: gonna have our eyes on all that. I think right

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Speaker 8: now that we were in a position where, you know,

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Speaker 8: if I would encourage clients to take a look at

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Speaker 8: their portfolio and look under the hood and look carefully

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Speaker 8: for any over concentrates in both the tech space as

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Speaker 8: well as the AI space. Investors have gotten away from

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Speaker 8: that over the past couple of years, and they've actually

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Speaker 8: been rewarded for that. And just because you've been rewarded

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Speaker 8: for it over the last year or two doesn't mean

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Speaker 8: that you should you should continue to not do it.

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Speaker 8: So I would encourage investors right now to really look

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Speaker 8: under the hood. Anything that's a high flyer, that's that's

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Speaker 8: making up too much of a concentration of portfolio, consider

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Speaker 8: trimming it, regardless of what we see with data unfold

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Speaker 8: moving forward.

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Speaker 3: Well, broadly, should you be selling down technology when we're

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Speaker 3: still only about five percent off of the record highs

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Speaker 3: than as that one hundred.

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Speaker 8: I mean, I think that if we just look at

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Speaker 8: valuations as a whole, you know, these tech stocks sold

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Speaker 8: off twenty to thirty percent, and a lot of them

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Speaker 8: at those levels, we're still trading at sixty times earnings.

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Speaker 8: So now we're bucked back almost to the all time

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Speaker 8: you know, back to the all time highs or five

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Speaker 8: percent below that we need to see, in my opinion,

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Speaker 8: continued strong, very strong earnings and overall data for that

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Speaker 8: trajectory to continue, in my opinion. Otherwise, I think we're

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Speaker 8: going to start to see some hangover effect and we're

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Speaker 8: going to start to see, in my opinion, maybe a

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Speaker 8: market that gets a little bit more sobered on this

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Speaker 8: AI trade because for me, now we just we're treating

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Speaker 8: it like it's going to be basically a money trade

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Speaker 8: and we're not paying attention to any of the expenses

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Speaker 8: or what are the costs, what are the taxation regulation,

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Speaker 8: consolidation competition, what's that going to look like, what's that

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Speaker 8: going to do to net profits? So Yeah, so that

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Speaker 8: I guess that's really all I have to say about that.

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Speaker 3: Okay, Jason, I'm reading between the lines that you feel

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Speaker 3: there's hype here in AI. So if you want to

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Speaker 3: remain committed in technology, but you don't want to remain

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Speaker 3: so committed on certain AI high flyers, is there any

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Speaker 3: where to put it?

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Speaker 5: Yeah?

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Speaker 8: And this is I mean, this is going to be ironic,

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Speaker 8: but I say this because their valuations are also appear

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Speaker 8: to be stretched, and our only you know, they're only

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Speaker 8: probably about five percent off their highs, and that would

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Speaker 8: be just cybersecurity, but the difference being, in my opinion,

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Speaker 8: much clearer picture moving forward on tangible earnings. So we

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Speaker 8: know there's bad guys that are going to continue to

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Speaker 8: get better regardless of whether the AI trajectory moves at

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Speaker 8: this kind of what I think is a perfect case

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Speaker 8: scenario is what the market is pricing in right now.

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Speaker 8: So if that happens, we're going to need a lot

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Speaker 8: more cybersecurity. And if it doesn't happen, the bad guys

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Speaker 8: are still going to be out there working hard and

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Speaker 8: getting better. And so I think for a long term place,

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Speaker 8: cybersecurity is probably the strongest. And also if things get

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Speaker 8: a little a little shaki or weird, might be actually

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Speaker 8: a bit more defensive in the technology space at this.

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Speaker 4: Moment, Jason, do you include crowd strike in that?

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Speaker 8: Can't talk about individual names unfortunately, but I would just

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Speaker 8: say as a whole you know, would say cybersecurities.

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Speaker 9: You know, in my opinion is it's a pretty big thing.

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Speaker 4: It sounds like everything we've discussed so far right that

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Speaker 4: it's the economic data that ties all of this together,

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Speaker 4: and so your action relating to technology sector depends on

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Speaker 4: that day. But why because of your view of what

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Speaker 4: the FED will it won't do?

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Speaker 8: So I think I think what I heard was just

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Speaker 8: asking about, you know, regarded to the FED and what

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Speaker 8: it will up will not do. My personal opinion is

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Speaker 8: that regardless of what the FED does. First off, I

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Speaker 8: think we're going to get a quarterbase right, We're gonna

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Speaker 8: get twenty five basis points in September. I think it's

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Speaker 8: kind of funny that that not funny in a good

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Speaker 8: way necessarily, but that you know, a few weeks ago

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Speaker 8: we had calls for emergency rate cuts and definitely fifty

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Speaker 8: bases points, and then you know, all of a sudden,

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Speaker 8: the sky was no longer falling. All of a sudden,

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Speaker 8: the data wasn't as bad as it seems. And so,

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Speaker 8: you know, regardless of what the FED does, I don't

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Speaker 8: think the Fed. I think the FED does twenty five

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Speaker 8: bases points and we may see more. I think we're

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Speaker 8: gonna get a better uh, we're gonna have a better

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Speaker 8: idea about that obviously after Friday.

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Speaker 9: But regardless of the fed's movement.

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Speaker 8: I'm not convinced that necessarily has a huge impact on

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Speaker 8: stocks over the short over the short term.

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Speaker 3: Amer of Price Financial Private Wealth of Jason Bett's some

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Speaker 3: calls there, We thank you for it now. British tech

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Speaker 3: entrepreneur Mike Lynch, of course, the CEO of software firm Autonomy,

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Speaker 3: as was, is among the people missing after a super

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Speaker 3: yacht sunk off the coast of Sicily and Italy. Scorne

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Speaker 3: into a source, one person has died. Six others, including

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Speaker 3: four UK nationals, are missing US after the fifty six

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Speaker 3: meter bog called Bayesian sank this morning near Porticello.

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Speaker 7: It's all according to Associated Press.

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Speaker 3: Ninch's wife, Angela Bacaraz is among those rescued.

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Speaker 7: The person said, ed.

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Speaker 4: Okay, coming up on the show, GM is laying off

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Speaker 4: more than one thousand software engineers.

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Speaker 5: Will have all the details next.

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Speaker 4: And Apple is working to make another key component in house.

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Speaker 5: But is the investment worth it?

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Speaker 4: We'll discuss this is Bloomberg Technology. General Motors is cutting

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Speaker 4: more than one thousand software engineers as the automaker moves

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Speaker 4: to lean up its software and services organization. That, according

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Speaker 4: to a source, with more than six hundred of these

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Speaker 4: layoffs to happen in Michigan.

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Speaker 5: Bloomberg's Detroit Burreier chief.

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Speaker 4: David Wells broke this story and joins us, Now, you've

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Speaker 4: written a lot about GM's big push into software and services,

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Speaker 4: and it seems, David, like they're kind of peeling that

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Speaker 4: back a bit.

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Speaker 9: Yeah.

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Speaker 2: I think this's the bigger picture here is they're peeling

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Speaker 2: back on a lot of these big technology bits, and

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Speaker 2: they kind of understand the bigger context here. You have

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Speaker 2: to go back a few years to their investor day

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Speaker 2: presentation when they said they were going to double revenue

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Speaker 2: of the company about twenty thirty and that was with

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Speaker 2: electric vehicles, autonomous vehicles, and these software related services. And

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Speaker 2: they never really explained what those were exactly, nor did

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Speaker 2: they really give examples. But with the electric Chevy Blazer,

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Speaker 2: we saw that they had things they could you charging

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Speaker 2: and plan it on your route. They had their own

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Speaker 2: version of car Play actually sort of a competitor or

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Speaker 2: replacement for it, and this group developed stuff like that

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Speaker 2: as well as a system that would control the car breaking,

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Speaker 2: battery management, all of it. And you know, they didn't

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Speaker 2: say this. What they said is they want to streamline

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Speaker 2: the group so they can move faster. But I have

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Speaker 2: to think that with them deling some of their electric

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Speaker 2: vehicle production, canceling at least one EV, maybe more, and

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Speaker 2: with the slowdown in autonomy, that maybe they just don't

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Speaker 2: need as many of these people because they aren't going

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Speaker 2: to be doing quite as much as they thought they

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Speaker 2: were when they hired them all.

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Speaker 4: Sometimes we were showing the statement from GM, which basically

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Speaker 4: confirms the broad idea of cuts, that doesn't sort of

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Speaker 4: quantify them. Does GM have a business yet? David's selling

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Speaker 4: software and services, you know, it is a big focus

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Speaker 4: of the pure play EV names, but also the legacy

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Speaker 4: OEMs as well. How much money can you make selling updates?

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Speaker 5: Essentially, they don't have much of a business.

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Speaker 2: And they've had on Star for years, which does it

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Speaker 2: has had some concierge services and navigation and that sort

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Speaker 2: of thing over the years, and they do still make

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Speaker 2: money off of on Star, and they've tried certain things

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Speaker 2: with linking up their drivers to Starbucks or other vendors

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Speaker 2: like that. But if they still make any money off

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Speaker 2: of that, it's negligible. It's something they do want to build.

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Speaker 2: Then the whole idea behind this what they used to

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Speaker 2: call Ultify. Now it's just their internal software system was

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Speaker 2: to control the entire car, not give control of that

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Speaker 2: to Apple or Google or anybody else, mostly Apple being

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Speaker 2: the one they wanted to avoid because if there was

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Speaker 2: money to be made off of services, they'd be able

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Speaker 2: to do it. And they still may, but it's just

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Speaker 2: not something that's really generating revenue now because it's so new,

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Speaker 2: and it looks like they're going to be raining and

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Speaker 2: in a bit interesting that.

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Speaker 3: Of course, to stop the money flowing to Apple, they

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Speaker 3: took executives from Apple, was it, David Richardson and another

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Speaker 3: joining to help lead the software team. Maybe they're thinking

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Speaker 3: about just doing all of this more with less.

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Speaker 2: Well, they are, certainly, and GM has described it basically

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Speaker 2: as a streamlining. And look, there are times when companies

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Speaker 2: launch into some big initiative like this and they just

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Speaker 2: hire too many people and they realize once they kind

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Speaker 2: of get into the meat of it, that they've just

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Speaker 2: they can develop what they need without so many of them.

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Speaker 2: And this is a pretty significant cut though more than

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Speaker 2: a thousand people, most of them being in Michigan. It's

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Speaker 2: quite a group to trim out.

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Speaker 7: If it's just streamlining, well, said David Welch.

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Speaker 3: Thank you, and let's turn our attention to Apple at

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Speaker 3: the moment because it's Hardware Technologies group, the chip builders

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Speaker 3: behind the company's in house processes, is working on a

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Speaker 3: new critical component. The payoff may not be seen for years.

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Speaker 3: Right now, iPhones use cellular modems built by Qualcom. It's

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Speaker 3: a reliable, best in class chip for basically most of

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Speaker 3: the global smartphone The strength thought in the in to Com.

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Speaker 3: Apple hopes to have a better in house replacement for

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Speaker 3: more writing about it is reingbods Mark German And this

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Speaker 3: is a longer term bet.

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Speaker 7: When will the payoff come?

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Speaker 3: Why have they shifted away from Qualcom in the long term?

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Speaker 10: Now, this is an interesting one. The project to develop

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Speaker 10: their own cellular modem really started because they were upset

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Speaker 10: with how much Qualcom was charging them. The royalty fees

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Speaker 10: that Qualcom had been charging Apple for years is something

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Speaker 10: that the company is simply not used to. Apple typically

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Speaker 10: gets the best bang for their buck. They typically are

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Speaker 10: the ones that are the more controlling in the supplier relationships.

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Speaker 10: But that sort of was spun on its head with Qualcomm,

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Speaker 10: and Apple really had no choice but to work with

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Speaker 10: Qualcomm because if Apple wanted to move to five G,

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Speaker 10: there really was no other game in town other than

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Speaker 10: the chip maker from San Diego, And so that was

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Speaker 10: really the start back in twenty eighteen when they started working.

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Speaker 5: On this modem.

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Speaker 10: Development ramped up around twenty twenty. They acquired Intel's modem

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Speaker 10: group for about one billion dollars twenty nineteen to really

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Speaker 10: jumpstart that development. But it's interesting because unlike the move

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Speaker 10: to Apple in house processors in the Mac, unlike the

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Speaker 10: move to Apple in house processors for earbuds, for smart watches,

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Speaker 10: for set top boxes, the modem from Qualcom is actually

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Speaker 10: best in class. At this point, You're not going to

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Speaker 10: bring better performance to the table than Qualcomm, and if

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Speaker 10: you do, this is not something that can be noticed

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Speaker 10: by the consumer.

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Speaker 9: So the bet here.

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Speaker 10: Is that this is going to save costs and then

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Speaker 10: maybe five years from now, over time, being able to

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Speaker 10: shrink that modem down to an Apple sized chip to

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Speaker 10: put it on the same motherboard and the same SoC

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Speaker 10: The system on a chip is the existing Apple components.

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Speaker 10: Maybe you can shrink down the internals of the phone

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Speaker 10: to add other new features to create new form factors.

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Speaker 10: So it's a mix of costs now and hopefully new

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Speaker 10: designs later.

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Speaker 4: Mak You also went back to the idea of a

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Speaker 4: table top robot in this week's power On. Just explain

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Speaker 4: that the basic design we don't have a visual right that.

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Speaker 4: I think it's in base terms worth telling the Bloomberg

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Speaker 4: Technology audience what it is they're planning to bring to us.

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Speaker 10: So, Apple's next big thing is robotics, and the first

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Speaker 10: robotics device you're going to see from Apple is going

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Speaker 10: to be a tabletop robot. It's essentially a gigantic iPad

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Speaker 10: screen connected to a robotic arm or a robotic conneck,

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Speaker 10: and the display can move to follow your head movements.

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Speaker 10: If I'm on a FaceTime call with someone and that

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Speaker 10: other person begins speaking that's in the room with me,

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Speaker 10: the display can know that it's them speaking and tilt

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Speaker 10: towards them. If you are on a FaceTime call with

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Speaker 10: someone else, and let's say that person on the other

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Speaker 10: line is nodding their head or making various head movements,

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Speaker 10: that screen will be able to follow the head movements

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Speaker 10: of that other person. You'll be able to tell the

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Speaker 10: device to look at you, and it will all turn

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Speaker 10: towards you and so this is a robotics exercise. The

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Speaker 10: company's aiming to get down to a price of around

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Speaker 10: one thousand dollars. The big picture here is that Apple's

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Speaker 10: trying a lot of new stuff, right, and I think

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Speaker 10: one day we're going to be having more in depth

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Speaker 10: discussions about mobile robots similar to the Amazon astro. I

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Speaker 10: think the idea of Apple getting to humanoid robots is

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Speaker 10: also a real possibility a decade from now.

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Speaker 5: Blimberg's Mark Gumman terrific.

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Speaker 3: It's tak crypto because Bitcoin and actually the wider crypto market,

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Speaker 3: they're not saying some sharp losses this month, even as

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Speaker 3: global stocks are pushed back towards record highs. Now Look,

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Speaker 3: bitcoin has been falling roughly ten percent in the month

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Speaker 3: of August, and with the same period though global stocks.

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Speaker 3: If you look at the MSCI inex, it's up more

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Speaker 3: than one percent, Gold is all time highs. Even the

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Speaker 3: global bond gauge is up nearly two percent. So why

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Speaker 3: the lagging lumotion? Ai Bassek is here for more. It's

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Speaker 3: supplies side, right, This is a potential for government sales.

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Speaker 7: There were a.

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Speaker 11: Lot of overhangs into the summer. If you think about it.

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Speaker 11: But the other problem here is what is the next catalyst.

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Speaker 11: If you got about the beginning of the year that

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Speaker 11: drove bitcoin to new record highs included that spot bitcoin ETF,

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Speaker 11: and now you do see financial advisors at least thinking

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Speaker 11: of or starting to adopt comfort and investing in those

404
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Speaker 11: spot bitcoin ETFs.

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Speaker 7: Maybe they'll buy the dip.

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Speaker 11: Seriously, there has not been enough dip buyers here to

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Speaker 11: bring us back to those record highs. We're floating below

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Speaker 11: sixty thousand. Still, there are a few things going on

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Speaker 11: when you talk about the supply side here. There was

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Speaker 11: a news in recent days Arkham Intelligence finding that the

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Speaker 11: US government has moved about six hundred million worth of

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Speaker 11: confiscated bitcoin from Silk Road over to a coin base wallet. Now,

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Speaker 11: the question is are they selling those bitcoin off or not.

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Speaker 11: The question becomes especially interesting when you think about Donald

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Speaker 11: Trump's proposal here to create a national Bitcoin.

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Speaker 7: Reserve that would therefore be backed by confiscated bitcoin. Remember,

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Speaker 7: the US.

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Speaker 11: Has twelve billion worth, we're only talking about six hundred

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Speaker 11: million more recently, the question is whether they're actually selling it.

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Speaker 11: But yet, I will go back to this issue here

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Speaker 11: of what is the next catalyst at what point, do

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Speaker 11: people buy not sell?

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Speaker 5: What would cause them too?

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Speaker 4: Real Questionale this just bitcoin or the market broadly?

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Speaker 11: The market broadly, you do have bitcoin and other assets.

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Speaker 11: Top one hundred Digital assets recently dropped on August fifth

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Speaker 11: to the worst level since November of twenty twenty two.

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Speaker 7: All of the DNC gets started.

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Speaker 11: By the way, there's a lot of questions about whether

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Speaker 11: the Harris administration would be tough on bitcoin. So interesting days.

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Speaker 3: Ahead such a PROTIONALI Bassett because that's exactly what we're

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Speaker 3: talking next.

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Speaker 7: The DNC in Chicago.

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Speaker 12: This blom Meg Technology. Welcome back to blouem Meg Technology.

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Speaker 12: I'm Caroline heid in New York and.

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Speaker 5: I met Ludlow in San Francisco.

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Speaker 3: Let's talk about the DNC end because it is kicking

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Speaker 3: off as Kamala Harris is kind of riding a wave

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Speaker 3: of momentum. Meanwhile, Republicans they're working to leverage that advantage

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Speaker 3: with voters by attacking.

441
00:21:58,160 --> 00:21:59,560
Speaker 7: Her new economic agenda.

442
00:22:00,000 --> 00:22:02,720
Speaker 3: I want to discuss what to expect in this week,

443
00:22:02,840 --> 00:22:06,800
Speaker 3: in particular, Kitty Lines is there. I'm interested Katie as

444
00:22:06,840 --> 00:22:08,840
Speaker 3: we think about well from a tech perspective, with thinking

445
00:22:08,880 --> 00:22:11,440
Speaker 3: about crypto and AI, but well broadly what are generally

446
00:22:11,560 --> 00:22:13,680
Speaker 3: be waiting to hear from the DNC.

447
00:22:16,480 --> 00:22:19,280
Speaker 13: Well, this is certainly going to be defined by energy

448
00:22:19,320 --> 00:22:23,399
Speaker 13: and enthusiasm, as the Democratic Party really has been reinvigorated

449
00:22:23,440 --> 00:22:26,320
Speaker 13: by the candidacy of Kamala Harris. As it was just

450
00:22:26,320 --> 00:22:28,919
Speaker 13: four weeks ago that President Biden decided to no longer

451
00:22:28,960 --> 00:22:32,200
Speaker 13: seek reelection and she became the Democratic nominee that is

452
00:22:32,240 --> 00:22:34,760
Speaker 13: already official thanks to a virtual roll call that happened

453
00:22:34,880 --> 00:22:37,000
Speaker 13: earlier this month. So really this week is all about

454
00:22:37,000 --> 00:22:39,399
Speaker 13: ceremony and the pomp and the circumstance and really trying

455
00:22:39,760 --> 00:22:41,320
Speaker 13: to unite the party around her.

456
00:22:41,400 --> 00:22:43,040
Speaker 7: Now President Biden himself.

457
00:22:42,680 --> 00:22:45,479
Speaker 13: Will be speaking this evening in a speech that may

458
00:22:45,520 --> 00:22:48,080
Speaker 13: be part about his legacy but also pitching it forward

459
00:22:48,200 --> 00:22:50,399
Speaker 13: to the kind of president he believes the person he

460
00:22:50,520 --> 00:22:53,320
Speaker 13: chose as Vice President Kamala Harris could be. He will

461
00:22:53,320 --> 00:22:54,840
Speaker 13: then be getting out of town, but we're going to have,

462
00:22:54,920 --> 00:22:57,879
Speaker 13: of course, a number of other high profile Democrats speaking

463
00:22:57,880 --> 00:23:01,679
Speaker 13: throughout the week, with Tim Walls, presidential nominee, speaking Wednesday,

464
00:23:01,680 --> 00:23:04,840
Speaker 13: and then culminating in Harris's address on Thursday. The question

465
00:23:04,880 --> 00:23:07,240
Speaker 13: will be how much that address really is about policy.

466
00:23:07,280 --> 00:23:09,399
Speaker 13: We're starting to get more on policy from her. She

467
00:23:09,440 --> 00:23:13,000
Speaker 13: of course, outlined her economic agenda last Friday in North Carolina.

468
00:23:13,040 --> 00:23:16,320
Speaker 13: Already it is being met by criticism by Republicans, even

469
00:23:16,320 --> 00:23:18,680
Speaker 13: some economists, and Donald Trump over this weekend was trying

470
00:23:18,720 --> 00:23:23,000
Speaker 13: to characterize her as Comrade Kamalist, suggesting some of the policies,

471
00:23:23,040 --> 00:23:25,600
Speaker 13: including when it comes to price gouging, could be seen

472
00:23:26,160 --> 00:23:29,080
Speaker 13: as communists more so than capitalists. So certainly you're going

473
00:23:29,119 --> 00:23:30,920
Speaker 13: to see those kind of attacks coming from the other

474
00:23:31,000 --> 00:23:34,000
Speaker 13: side of the aisle this week, while the Democratic side

475
00:23:34,000 --> 00:23:36,480
Speaker 13: of the isle is going to be here in Chicago

476
00:23:36,560 --> 00:23:39,880
Speaker 13: trying to reinforce their candidate that does have some momentum

477
00:23:39,880 --> 00:23:42,000
Speaker 13: coming into this is. New polling, including one from The

478
00:23:42,040 --> 00:23:45,200
Speaker 13: Washington Post, ABC and IPSOS this weekend, shows her leading

479
00:23:45,200 --> 00:23:48,840
Speaker 13: Trump nationally by four points, forty nine percent to forty

480
00:23:48,840 --> 00:23:49,359
Speaker 13: five percent.

481
00:23:50,440 --> 00:23:53,680
Speaker 4: Katie, the principle difference between what's happening this week in

482
00:23:53,760 --> 00:23:56,200
Speaker 4: DNC and R and C is that we have the ticket.

483
00:23:56,040 --> 00:23:57,720
Speaker 5: Right Harris Waltz.

484
00:23:58,200 --> 00:24:01,920
Speaker 4: But all the areas of unknown or surprise that make

485
00:24:02,320 --> 00:24:06,119
Speaker 4: each of the days exciting or something specifically to tune in.

486
00:24:06,040 --> 00:24:10,800
Speaker 13: For, well, there always is room for surprise that I

487
00:24:10,840 --> 00:24:12,919
Speaker 13: think we've come to learn that in this election cycle

488
00:24:12,960 --> 00:24:15,040
Speaker 13: in particular, as many of us have been surprised on

489
00:24:15,520 --> 00:24:18,880
Speaker 13: quite a few many occasions. What could be more uncertain

490
00:24:18,960 --> 00:24:21,960
Speaker 13: about this convention in particular is the degree to which

491
00:24:22,040 --> 00:24:25,360
Speaker 13: protests over the war in Gaza could be disruptive. We've

492
00:24:25,400 --> 00:24:27,439
Speaker 13: already started to see them here in Chicago. There were

493
00:24:27,480 --> 00:24:30,639
Speaker 13: some last night that were causing quite some issues with traffic,

494
00:24:30,720 --> 00:24:33,200
Speaker 13: especially for me as I tried to get to the hotel,

495
00:24:33,240 --> 00:24:35,360
Speaker 13: and there are more planned throughout the duration of the week.

496
00:24:35,400 --> 00:24:37,320
Speaker 13: The question is going to be to what extent that

497
00:24:37,359 --> 00:24:40,040
Speaker 13: remains outside of the actual convention itself, and to what

498
00:24:40,080 --> 00:24:43,600
Speaker 13: extent may bleed into the actual United Center where the

499
00:24:43,600 --> 00:24:46,760
Speaker 13: proceedings are taking place, how disrupted they would meet could be,

500
00:24:46,840 --> 00:24:49,680
Speaker 13: whether or not there would be there could be any violence.

501
00:24:49,720 --> 00:24:52,080
Speaker 13: We haven't had reports of that yet, but certainly that

502
00:24:52,160 --> 00:24:53,919
Speaker 13: is something we're keeping a close eye on, as that

503
00:24:54,040 --> 00:24:57,760
Speaker 13: is one of the very tangible divisions within this Democratic Party.

504
00:24:57,800 --> 00:25:00,639
Speaker 13: While it has been able to really unite around Harris

505
00:25:00,680 --> 00:25:02,800
Speaker 13: to a large extent, especially when we're thinking about party

506
00:25:02,880 --> 00:25:06,320
Speaker 13: leadership sitting lawmakers, there does remain that deep division within

507
00:25:06,359 --> 00:25:09,239
Speaker 13: the Democratic electorate itself, as evidenced by the fact that

508
00:25:09,280 --> 00:25:13,119
Speaker 13: some delegates were showing up here in Chicago as uncommitted

509
00:25:13,160 --> 00:25:16,480
Speaker 13: because many voters and states, including Michigan, decided to elect

510
00:25:16,480 --> 00:25:18,879
Speaker 13: a vote for uncommitted or at the equivalent, over President

511
00:25:18,960 --> 00:25:22,080
Speaker 13: Biden over protest of that ongoing war between Israel and

512
00:25:22,119 --> 00:25:23,600
Speaker 13: Hamas kayleie.

513
00:25:23,640 --> 00:25:24,879
Speaker 7: That's a key talking point.

514
00:25:25,640 --> 00:25:28,040
Speaker 3: Are there any technology elements that we should be keeping

515
00:25:28,119 --> 00:25:30,560
Speaker 3: eye on for audience in particular? I mean, we're always

516
00:25:30,600 --> 00:25:34,119
Speaker 3: thinking about what the crypto viewpoint might be from a

517
00:25:34,200 --> 00:25:36,440
Speaker 3: Harris ticket, but any other areas.

518
00:25:36,960 --> 00:25:43,400
Speaker 13: H well, certainly there is an element here of questioning

519
00:25:43,440 --> 00:25:46,240
Speaker 13: what kind of crypto policy Kamala Harris could adopt. There

520
00:25:46,320 --> 00:25:48,960
Speaker 13: was a Crypto for Harris virtual event that happened just

521
00:25:49,080 --> 00:25:51,639
Speaker 13: last week that even the Senate Majority Leader Chuck Schumer

522
00:25:51,680 --> 00:25:52,080
Speaker 13: took part.

523
00:25:52,119 --> 00:25:53,320
Speaker 7: And we've spoken with.

524
00:25:53,280 --> 00:25:55,920
Speaker 13: A big crypto advocate in Congress, Congressman WYLEYE. Nicol of

525
00:25:55,960 --> 00:25:58,320
Speaker 13: North Carolina, who has said he is actively involved in

526
00:25:58,359 --> 00:26:00,480
Speaker 13: pushing the campaign to be more o, been to the

527
00:26:00,480 --> 00:26:02,879
Speaker 13: innovation in the industry can offer. That has been the

528
00:26:02,880 --> 00:26:05,399
Speaker 13: case under the Biden administration, but we have seen this

529
00:26:05,480 --> 00:26:09,720
Speaker 13: campaign in general really embrace technology, especially social media we've

530
00:26:09,760 --> 00:26:12,440
Speaker 13: seen a lot of those kind of viral meme aspects

531
00:26:12,440 --> 00:26:14,520
Speaker 13: of this campaign showing up much more for the Harris

532
00:26:14,520 --> 00:26:16,880
Speaker 13: ticket than the Trump Vance one, and I would note

533
00:26:17,359 --> 00:26:19,960
Speaker 13: we're seeing that in the advice as well. The Harris

534
00:26:19,960 --> 00:26:22,800
Speaker 13: campaign has annowed three hundred and seventy million dollars of

535
00:26:22,880 --> 00:26:27,080
Speaker 13: advice between Labor Day and the election. Election two hundred

536
00:26:27,119 --> 00:26:30,240
Speaker 13: million of that is digital advertising in particular, so really

537
00:26:30,320 --> 00:26:34,080
Speaker 13: venturing into that realm beyond just your traditional TV ads.

538
00:26:34,080 --> 00:26:36,560
Speaker 13: As for any other technology policy, we're going to be

539
00:26:36,600 --> 00:26:39,280
Speaker 13: looking to hear more of that throughout the course of

540
00:26:39,320 --> 00:26:41,639
Speaker 13: the week, but we could probably expect that the speech

541
00:26:41,640 --> 00:26:43,800
Speaker 13: Harris will give on Thursday night is going to be

542
00:26:43,880 --> 00:26:48,240
Speaker 13: much broader strokes than getting into really specific policy recommendations

543
00:26:48,320 --> 00:26:52,320
Speaker 13: or platform.

544
00:26:50,359 --> 00:26:52,840
Speaker 4: Most Katie Lions, another very busy week for you on

545
00:26:52,920 --> 00:26:54,760
Speaker 4: the ground, and we'll tune in each day, Thank you

546
00:26:54,920 --> 00:26:57,720
Speaker 4: very much. Now, the Democratic ticket is set to address

547
00:26:57,760 --> 00:26:59,760
Speaker 4: a number of key themes. Kaylee went through some of

548
00:26:59,760 --> 00:27:02,879
Speaker 4: them at the DNC this week. One of them is

549
00:27:02,960 --> 00:27:06,480
Speaker 4: labor unions. From Apple and Amazon to Samsung and Tesla.

550
00:27:07,000 --> 00:27:10,679
Speaker 4: Recent unionization efforts have been hitting the tech sector. I'm

551
00:27:10,680 --> 00:27:12,920
Speaker 4: going to break it all down with Bloomberg Industry Group

552
00:27:12,960 --> 00:27:16,960
Speaker 4: reporter Ian cole Gren. And actually a recent spark point

553
00:27:17,040 --> 00:27:23,520
Speaker 4: probably was the complaint or enforcement complaint by the UAW

554
00:27:23,960 --> 00:27:27,760
Speaker 4: in reaction to that Musk and Trump spaces. You know,

555
00:27:28,080 --> 00:27:30,600
Speaker 4: that's the scene setter here, right, Ian, that this is

556
00:27:30,640 --> 00:27:33,480
Speaker 4: a focus on both sides of this election race.

557
00:27:35,520 --> 00:27:38,080
Speaker 14: It's certainly one of the big ones, and it is

558
00:27:38,560 --> 00:27:43,560
Speaker 14: one of the tools that the UAW and unions as

559
00:27:43,600 --> 00:27:48,840
Speaker 14: a whole are using to divide themselves from Trump and

560
00:27:49,000 --> 00:27:52,480
Speaker 14: who they see as Trump allies like Elon Musk. This

561
00:27:52,680 --> 00:27:56,520
Speaker 14: was certainly not an expected complaint, and it had the

562
00:27:57,160 --> 00:28:02,560
Speaker 14: effect of really changing the Teamsters and some other middle

563
00:28:02,600 --> 00:28:05,879
Speaker 14: of the road unions from being sort of ambivalent about

564
00:28:05,880 --> 00:28:08,400
Speaker 14: Trump and maybe willing to entertain his side hear him

565
00:28:08,400 --> 00:28:11,560
Speaker 14: a little bit, to being fully against Trump.

566
00:28:11,640 --> 00:28:17,040
Speaker 3: Now what's interesting is that, well, Tesla's certainly Elon Musk

567
00:28:17,119 --> 00:28:21,440
Speaker 3: not the only technology name that has seen movement for unionization,

568
00:28:21,520 --> 00:28:23,920
Speaker 3: maybe pushed against it in some way. But I'm thinking

569
00:28:23,920 --> 00:28:27,679
Speaker 3: what Apple store workers in Oklahoma City. They're given the

570
00:28:27,760 --> 00:28:31,280
Speaker 3: union leader's permission to call a strike if talks don't

571
00:28:31,280 --> 00:28:35,800
Speaker 3: go well. What ultimately has been technology sentiment towards unions, unionization,

572
00:28:36,000 --> 00:28:36,680
Speaker 3: organized labor.

573
00:28:38,520 --> 00:28:42,640
Speaker 14: Well, it's been a little bit mixed. Traditionally, the technology

574
00:28:42,680 --> 00:28:46,080
Speaker 14: sector has not been in favor of unions, has been

575
00:28:46,480 --> 00:28:49,800
Speaker 14: rather against unions in seeing them as an impediment to

576
00:28:50,120 --> 00:28:54,680
Speaker 14: the kind of startup, move fast break things, innovate quickly

577
00:28:55,040 --> 00:28:59,040
Speaker 14: culture that has defined Silicon Valley and its successes. But

578
00:28:59,240 --> 00:29:06,200
Speaker 14: increasingly workers, as you noted, are turning to unions to

579
00:29:06,280 --> 00:29:09,760
Speaker 14: solve some of the more top down kind of quality

580
00:29:09,800 --> 00:29:13,360
Speaker 14: of life problems that workers started seeing in some of

581
00:29:13,360 --> 00:29:18,120
Speaker 14: these businesses, especially as you've noted in Apple stores in

582
00:29:18,160 --> 00:29:21,600
Speaker 14: the retail front that a really started in the pandemic

583
00:29:21,720 --> 00:29:24,959
Speaker 14: when many workers who I've talked to and have spoken

584
00:29:24,960 --> 00:29:27,920
Speaker 14: publicly felt like they weren't being listened to by their bosses.

585
00:29:29,400 --> 00:29:32,400
Speaker 4: We set the scene in it's that we think this

586
00:29:32,600 --> 00:29:35,720
Speaker 4: issue boarding will be discussed at the DNC. But is

587
00:29:35,720 --> 00:29:38,160
Speaker 4: someone covering the beat. Do you have a real sort

588
00:29:38,160 --> 00:29:43,080
Speaker 4: of sense of the Harris policy? Is there something codified

589
00:29:43,160 --> 00:29:46,040
Speaker 4: you can say, Okay, this is what Harris's policy platform

590
00:29:46,080 --> 00:29:47,800
Speaker 4: will be in this election race.

591
00:29:50,000 --> 00:29:54,479
Speaker 14: Well, certainly there are plenty of open questions right now

592
00:29:54,800 --> 00:29:58,520
Speaker 14: to see if Harris really will pick up the torch

593
00:29:58,720 --> 00:30:01,280
Speaker 14: from Biden and being, as he described that, the most

594
00:30:01,640 --> 00:30:05,880
Speaker 14: pro union president in history. Many unions agree with that sentiment,

595
00:30:05,960 --> 00:30:10,000
Speaker 14: and it's notable that they really, unions, i mean really

596
00:30:10,000 --> 00:30:13,840
Speaker 14: stuck with Biden until the very bitter end. There was

597
00:30:13,880 --> 00:30:19,320
Speaker 14: not one major union that came out against Biden, even privately,

598
00:30:19,920 --> 00:30:21,800
Speaker 14: as far as we know, told him.

599
00:30:21,960 --> 00:30:23,280
Speaker 5: To drop out of the race.

600
00:30:23,720 --> 00:30:27,120
Speaker 14: That said it. They were also very quick to back Harris,

601
00:30:27,480 --> 00:30:32,320
Speaker 14: rallying around her as the next best choice. They noted

602
00:30:32,440 --> 00:30:35,840
Speaker 14: that she shared a labor White House Labor task Force

603
00:30:36,080 --> 00:30:39,600
Speaker 14: that Biden had convened. That's true. It's a little bit

604
00:30:39,840 --> 00:30:43,479
Speaker 14: debatable how much that actually did for unions and how

605
00:30:43,520 --> 00:30:46,480
Speaker 14: much of it is just for show. But they're sort

606
00:30:46,520 --> 00:30:49,200
Speaker 14: of taking her at her best word right now that

607
00:30:49,320 --> 00:30:53,280
Speaker 14: she is going to be as pro union as Biden was.

608
00:30:53,600 --> 00:30:55,600
Speaker 14: Of course, one thing we're going to be watching closely

609
00:30:55,880 --> 00:31:00,720
Speaker 14: is the constant tension between some of these big Silicon

610
00:31:00,800 --> 00:31:04,320
Speaker 14: Valley donors who tend to give to Democrats and then

611
00:31:04,400 --> 00:31:11,040
Speaker 14: this more organic worker organizing. The Democrats say they'refore on paper,

612
00:31:11,120 --> 00:31:13,400
Speaker 14: but can conflict with some of their best interests in

613
00:31:13,400 --> 00:31:13,800
Speaker 14: the moment.

614
00:31:14,720 --> 00:31:17,800
Speaker 3: In Culgren putting it delicately, for US remag Industry Group.

615
00:31:17,840 --> 00:31:18,280
Speaker 7: We thank you.

616
00:31:18,880 --> 00:31:22,560
Speaker 3: Meanwhile, it's time been talking tech. First up Lime is

617
00:31:22,680 --> 00:31:23,800
Speaker 3: entering the Japanese market.

618
00:31:23,880 --> 00:31:24,080
Speaker 7: Look.

619
00:31:24,080 --> 00:31:26,760
Speaker 3: It's the Uber backed scooter company and it's launching its

620
00:31:26,800 --> 00:31:29,640
Speaker 3: services today in Tokyo with two hundred scooters and forty

621
00:31:29,760 --> 00:31:32,480
Speaker 3: charging ports to San Francisco based startup of course, and

622
00:31:32,520 --> 00:31:35,160
Speaker 3: it's entering a pretty growing market, putting itself against the

623
00:31:35,240 --> 00:31:38,640
Speaker 3: likes of Tokyo based Loop, which controls ninety percent of

624
00:31:38,680 --> 00:31:42,600
Speaker 3: the domestic market. Meanwhile, Elol Musk's X is going to.

625
00:31:42,520 --> 00:31:43,880
Speaker 7: Close operations in Brazil.

626
00:31:43,960 --> 00:31:46,480
Speaker 3: The announcement marks the latest step in a showdown between

627
00:31:46,520 --> 00:31:49,560
Speaker 3: Musk and Brazil Supreme Court Justice, who is spearheading efforts

628
00:31:49,600 --> 00:31:52,880
Speaker 3: to combat fake news hate speech. While operations in the

629
00:31:52,880 --> 00:31:56,480
Speaker 3: country will be shutting down, though the service will remain available.

630
00:31:57,280 --> 00:32:00,680
Speaker 3: And Africa's empty N Group posted its first loss since

631
00:32:00,720 --> 00:32:04,120
Speaker 3: twenty sixteen, and the country's largest wireless carrier by revenue,

632
00:32:04,120 --> 00:32:05,840
Speaker 3: has reported a loss of four hundred and fifty.

633
00:32:05,600 --> 00:32:07,280
Speaker 7: Million dollars in the six months through June.

634
00:32:07,520 --> 00:32:09,840
Speaker 3: This is as the evaluation of the Nigeria and NARRA

635
00:32:10,240 --> 00:32:13,480
Speaker 3: crimped income. MTN has about seventy seven million customers in

636
00:32:13,560 --> 00:32:16,360
Speaker 3: Nigeria and derives about a third of its earnings from

637
00:32:16,400 --> 00:32:25,440
Speaker 3: the nation. It is time to discuss investing trends, but

638
00:32:25,520 --> 00:32:27,360
Speaker 3: we're going to hone in on the gaming world, of course,

639
00:32:27,360 --> 00:32:30,200
Speaker 3: following that use of Epic Games launching a new mobile

640
00:32:30,240 --> 00:32:32,920
Speaker 3: storefront after four years, the legal tug of war with

641
00:32:32,960 --> 00:32:36,320
Speaker 3: Apple and Google over their app store practices, joining us

642
00:32:36,360 --> 00:32:38,600
Speaker 3: now with a deep dive Menlo Ventures partner Amy Wu

643
00:32:38,680 --> 00:32:41,680
Speaker 3: who of course leads gaming consumer blockchain investments for the firm,

644
00:32:41,760 --> 00:32:42,440
Speaker 3: And it's.

645
00:32:42,280 --> 00:32:43,920
Speaker 7: Always great to have you on the shoot. So much,

646
00:32:44,880 --> 00:32:45,600
Speaker 7: what did you make of it?

647
00:32:45,640 --> 00:32:47,920
Speaker 3: I mean, after four long years, how much is Epic

648
00:32:47,960 --> 00:32:50,560
Speaker 3: had to give back, like let go in terms of

649
00:32:50,600 --> 00:32:52,600
Speaker 3: market share by taking on this battle.

650
00:32:52,720 --> 00:32:54,600
Speaker 7: I mean, the casts are very large.

651
00:32:54,640 --> 00:32:56,800
Speaker 1: In addition to the you know, hundreds of millions of

652
00:32:56,840 --> 00:32:59,840
Speaker 1: dollars of legal fees, they also gave up mark ashare

653
00:33:00,080 --> 00:33:02,320
Speaker 1: because in the last four years you saw, you know,

654
00:33:02,400 --> 00:33:04,800
Speaker 1: Call of Duty mobile I think has something like two

655
00:33:04,840 --> 00:33:07,720
Speaker 1: hundred and fifty million downloads, several billion dollars in revenue,

656
00:33:07,800 --> 00:33:10,800
Speaker 1: and so it's really exciting I think for everybody, Tim Sweeney,

657
00:33:10,880 --> 00:33:14,360
Speaker 1: the developer community, also their investors to see them back

658
00:33:14,400 --> 00:33:18,160
Speaker 1: in the in the mobile platform, but they've still got

659
00:33:18,160 --> 00:33:18,800
Speaker 1: long ways to go.

660
00:33:19,040 --> 00:33:20,520
Speaker 3: I mean, you wrote to checks for them when you

661
00:33:20,560 --> 00:33:23,160
Speaker 3: were at a previous VC lightspe benchres I believe that

662
00:33:23,160 --> 00:33:25,600
Speaker 3: if they had been like a focus of yours, do

663
00:33:26,200 --> 00:33:28,360
Speaker 3: you still think that this is the company that you

664
00:33:28,400 --> 00:33:29,480
Speaker 3: should be riding a wave on.

665
00:33:29,640 --> 00:33:31,240
Speaker 7: Is Fortnite's still dominant enough?

666
00:33:31,800 --> 00:33:33,600
Speaker 3: Where else do you want to be sort of allocating

667
00:33:33,600 --> 00:33:34,520
Speaker 3: to in this environment?

668
00:33:34,880 --> 00:33:35,040
Speaker 14: Well?

669
00:33:35,120 --> 00:33:37,840
Speaker 1: Right now, I think that you see Epic Games, they're

670
00:33:37,880 --> 00:33:40,480
Speaker 1: very much trying to expand their audience, right with a

671
00:33:40,560 --> 00:33:44,680
Speaker 1: launch of UEFN last year at GDC, they're really trying

672
00:33:44,720 --> 00:33:48,640
Speaker 1: to expand beyond their young shooter audience into something more general,

673
00:33:49,080 --> 00:33:51,120
Speaker 1: competing against roadblocks, and so I think those are.

674
00:33:51,080 --> 00:33:51,880
Speaker 7: Really smart moves.

675
00:33:51,960 --> 00:33:54,640
Speaker 1: You know, obviously Tim has been fighting the mobile battle

676
00:33:54,640 --> 00:33:56,480
Speaker 1: for a while. I think it's exciting to see them

677
00:33:56,520 --> 00:33:59,840
Speaker 1: come onto that platform, especially when they have games like

678
00:34:00,200 --> 00:34:02,120
Speaker 1: Guys that are really conducive.

679
00:34:01,680 --> 00:34:03,000
Speaker 7: To more of a mobile audience.

680
00:34:03,760 --> 00:34:06,040
Speaker 1: And so I think that also in games, you know,

681
00:34:06,080 --> 00:34:08,080
Speaker 1: we're looking at mobile there's been a little bit more

682
00:34:08,120 --> 00:34:10,960
Speaker 1: emine activity in the mobile game sector. We're looking at

683
00:34:11,000 --> 00:34:13,800
Speaker 1: the intersection of AI and games right now, some pretty

684
00:34:13,800 --> 00:34:16,759
Speaker 1: exciting things have been happening. You know, Leonardo AI got

685
00:34:16,800 --> 00:34:20,160
Speaker 1: acquired by by Canva recently. That's more in the tooling space.

686
00:34:20,400 --> 00:34:22,680
Speaker 1: A lot of game des we're experimenting with using them,

687
00:34:22,920 --> 00:34:25,280
Speaker 1: and so we are really actively investing in that space.

688
00:34:26,520 --> 00:34:28,760
Speaker 4: Amy, It's great to have you back on the program.

689
00:34:28,840 --> 00:34:30,360
Speaker 4: I mean, you make a really good point, which is

690
00:34:30,400 --> 00:34:33,240
Speaker 4: on the developer side of the community. In our coverage,

691
00:34:33,280 --> 00:34:36,120
Speaker 4: we kind of emphasize that this is about the consumer

692
00:34:36,200 --> 00:34:39,759
Speaker 4: having options to access, But what does it mean for

693
00:34:39,800 --> 00:34:43,160
Speaker 4: a marketplace for developers when there are more than one

694
00:34:43,280 --> 00:34:45,840
Speaker 4: or two platforms in which you can access mobile games

695
00:34:45,880 --> 00:34:46,520
Speaker 4: in particular?

696
00:34:47,160 --> 00:34:47,560
Speaker 7: I think it.

697
00:34:47,800 --> 00:34:49,680
Speaker 1: Actually I think, you know, I think Tim Sweeney is

698
00:34:49,719 --> 00:34:52,600
Speaker 1: seen as a full hero to a lot of indie developers,

699
00:34:53,120 --> 00:34:57,320
Speaker 1: and choice and choice of platforms to launch games into

700
00:34:57,800 --> 00:35:00,839
Speaker 1: is just better for developers, right Having multiple competitors, they

701
00:35:00,880 --> 00:35:04,080
Speaker 1: can you know, negotiate better pricing, et cetera. Before it's

702
00:35:04,080 --> 00:35:07,800
Speaker 1: just Apples thirty percent you know fee app store, and

703
00:35:08,200 --> 00:35:11,160
Speaker 1: so I think this is a very much positive. But

704
00:35:11,239 --> 00:35:12,759
Speaker 1: I think, you know, Epic had to go through a

705
00:35:12,760 --> 00:35:16,840
Speaker 1: lot of hoops just to get their their storefront launched

706
00:35:16,880 --> 00:35:19,360
Speaker 1: in you know, currently EU, not the US yet, I

707
00:35:19,400 --> 00:35:22,680
Speaker 1: think Android globally, and so again they're sort of at

708
00:35:22,680 --> 00:35:24,799
Speaker 1: the forefront fighting this fight and it's going to be

709
00:35:24,800 --> 00:35:26,600
Speaker 1: benefiting developers worldwide.

710
00:35:27,920 --> 00:35:31,120
Speaker 4: Amy as you outline you were previously an investor in Epic,

711
00:35:31,200 --> 00:35:33,640
Speaker 4: they have this goal or Tim has this goal one

712
00:35:33,640 --> 00:35:35,560
Speaker 4: one hundred million new installs in.

713
00:35:35,640 --> 00:35:37,000
Speaker 5: Quite a tight time period.

714
00:35:37,560 --> 00:35:40,040
Speaker 4: Just reflecting on your knowledge of the company and that

715
00:35:40,160 --> 00:35:42,719
Speaker 4: leadership team, like is this a win for them?

716
00:35:42,760 --> 00:35:43,920
Speaker 5: Like how are they doing now?

717
00:35:44,520 --> 00:35:47,080
Speaker 1: They're certainly putting a lot of capital at work. You know,

718
00:35:47,120 --> 00:35:49,840
Speaker 1: they're privately held business, and so Tim can be a

719
00:35:49,920 --> 00:35:52,799
Speaker 1: lot more aggressive. And you know, when you launched UEFN

720
00:35:53,160 --> 00:35:56,680
Speaker 1: and their sort of user generated content marketplace, I would

721
00:35:56,719 --> 00:36:00,200
Speaker 1: say they had the most advantageous payout of any so

722
00:36:00,400 --> 00:36:02,879
Speaker 1: any platform, you know, better than Roadblocks at the time.

723
00:36:03,000 --> 00:36:06,239
Speaker 1: And so that is again really great for developers, but

724
00:36:06,320 --> 00:36:07,960
Speaker 1: I think that they have a long way to go

725
00:36:08,000 --> 00:36:11,640
Speaker 1: in terms of future parody with roadblocks. Also, the just

726
00:36:11,680 --> 00:36:14,960
Speaker 1: the discovery algorithms, right, because you have to remember the

727
00:36:15,000 --> 00:36:18,000
Speaker 1: Epic community primarily like shooting games.

728
00:36:17,840 --> 00:36:19,880
Speaker 7: And so to really expand their.

729
00:36:20,040 --> 00:36:23,360
Speaker 1: Audience to a much more general audience has to be

730
00:36:23,440 --> 00:36:26,480
Speaker 1: baked into their algorithms as well. In terms of discovery,

731
00:36:26,719 --> 00:36:28,279
Speaker 1: and so they're working on all of that and I

732
00:36:28,320 --> 00:36:32,120
Speaker 1: think developers are patiently waiting for it, but you know,

733
00:36:32,160 --> 00:36:35,280
Speaker 1: the patient is finite patients fighting.

734
00:36:35,640 --> 00:36:38,440
Speaker 3: What's interesting is you would saying how you're looking at

735
00:36:38,480 --> 00:36:41,399
Speaker 3: the AI scene within gaming, and much has been said

736
00:36:41,440 --> 00:36:44,840
Speaker 3: as to how ultimately we'll suddenly have you generated content

737
00:36:44,920 --> 00:36:46,560
Speaker 3: so much more to be able to be built in,

738
00:36:46,600 --> 00:36:49,240
Speaker 3: But I mean whether or not games will be building themselves,

739
00:36:49,320 --> 00:36:52,319
Speaker 3: that's much more. You led the latest run in anthropic,

740
00:36:52,600 --> 00:36:55,080
Speaker 3: How are you studying cee AI and gaming really start

741
00:36:55,160 --> 00:36:56,520
Speaker 3: to lead to efficiencies or not?

742
00:36:56,640 --> 00:36:57,759
Speaker 7: Is it still a long term bet?

743
00:36:57,920 --> 00:37:01,560
Speaker 1: Yeah, my partner Metmorphy led them. Thus it's the largest

744
00:37:01,560 --> 00:37:04,680
Speaker 1: for Menlo and we're really excited about So I think,

745
00:37:04,719 --> 00:37:08,279
Speaker 1: you know, code generation is a pretty exciting application of

746
00:37:08,760 --> 00:37:12,560
Speaker 1: generative AI lms, and so that could potentially be applied

747
00:37:12,600 --> 00:37:15,280
Speaker 1: to game making as well. And I think the challenge,

748
00:37:15,320 --> 00:37:17,320
Speaker 1: and I think we saw this with the blockchain cycle,

749
00:37:17,680 --> 00:37:21,120
Speaker 1: is that ultimately consumers care less about the technology. They

750
00:37:21,160 --> 00:37:24,000
Speaker 1: want to play something fun, and so we have to

751
00:37:24,080 --> 00:37:26,520
Speaker 1: prove an AI needs to prove that it can not

752
00:37:26,520 --> 00:37:28,680
Speaker 1: only generate code, but generate it in a way that's

753
00:37:28,719 --> 00:37:32,800
Speaker 1: actually quite creative in something that consumers want to play.

754
00:37:33,080 --> 00:37:35,520
Speaker 7: And I think that is still you know, proof is out.

755
00:37:36,560 --> 00:37:37,839
Speaker 7: We haven't seen anything quite yet.

756
00:37:37,920 --> 00:37:40,160
Speaker 1: There's a lot of really interesting attempts more and I

757
00:37:40,160 --> 00:37:43,120
Speaker 1: would say low fidelity two D games, but you know,

758
00:37:43,160 --> 00:37:45,480
Speaker 1: I am we're very actively looking at a lot of

759
00:37:45,480 --> 00:37:49,120
Speaker 1: the teams that are trying to push that technology in

760
00:37:49,200 --> 00:37:51,839
Speaker 1: the absolute sort of the farthest it can it can

761
00:37:51,880 --> 00:37:53,040
Speaker 1: go in or to generate games.

762
00:37:54,040 --> 00:37:56,480
Speaker 4: Amy, we just have fifteen seconds, just an area in

763
00:37:56,520 --> 00:37:59,120
Speaker 4: gaming or adjacent you're really excited about right now.

764
00:38:00,120 --> 00:38:04,560
Speaker 1: I am excited about user generated games, whether it is

765
00:38:04,640 --> 00:38:09,239
Speaker 1: more social, also, you know, easier to build. You know,

766
00:38:09,280 --> 00:38:13,000
Speaker 1: most roadblocks. Developers are semi professional developers, and so I

767
00:38:13,000 --> 00:38:15,960
Speaker 1: think this trend around making it even easier is a

768
00:38:16,000 --> 00:38:18,080
Speaker 1: really exciting one. It gives consumer more.

769
00:38:18,040 --> 00:38:21,520
Speaker 5: Choice, creator economy. But for video games.

770
00:38:21,560 --> 00:38:23,680
Speaker 4: Mellow Ventures partner Amy will great to have you back

771
00:38:23,680 --> 00:38:26,840
Speaker 4: here on bloombog Technology.

772
00:38:32,520 --> 00:38:34,800
Speaker 3: Let's get back to Fubo because we mentioned that shares

773
00:38:35,080 --> 00:38:38,200
Speaker 3: were soaring and they still are. After Fox, Warner Brothers,

774
00:38:38,239 --> 00:38:41,000
Speaker 3: Discovery and Disney, we're actually blocked by a judge from

775
00:38:41,080 --> 00:38:46,120
Speaker 3: launching their streaming sports service just one week before its rollout.

776
00:38:46,560 --> 00:38:49,600
Speaker 3: Bloomberg's Hannah Miller joins us for more, and it took

777
00:38:49,640 --> 00:38:53,120
Speaker 3: investors of Fubo by surprise. They take you surprise, the

778
00:38:53,160 --> 00:38:55,040
Speaker 3: fact that this is so close to the unveiling.

779
00:38:55,440 --> 00:38:57,040
Speaker 5: Yes, it was a bit of a shark. You know.

780
00:38:57,280 --> 00:38:59,279
Speaker 15: Venue has had a lot of buzz around it. They've

781
00:38:59,320 --> 00:39:01,800
Speaker 15: been very opti mystic about it, a lot of excitement.

782
00:39:02,040 --> 00:39:03,880
Speaker 15: So the fact that this is blocked so close to

783
00:39:03,920 --> 00:39:05,720
Speaker 15: the launch, I mean, that's pretty crazy.

784
00:39:07,120 --> 00:39:10,440
Speaker 4: The only question I guess is how much chance is

785
00:39:10,480 --> 00:39:14,200
Speaker 4: there that the injunction kills Vinu altogether, that it just

786
00:39:14,280 --> 00:39:15,040
Speaker 4: doesn't launch.

787
00:39:15,520 --> 00:39:19,359
Speaker 15: Well, we know that Warner and Fox and they're going

788
00:39:19,400 --> 00:39:23,040
Speaker 15: to appeal on this. They're arguing that, you know, they

789
00:39:23,080 --> 00:39:26,200
Speaker 15: have a strong case that Fubo doesn't actually you know,

790
00:39:26,280 --> 00:39:29,680
Speaker 15: add to the TV market that much, and that they're

791
00:39:29,719 --> 00:39:33,880
Speaker 15: providing a skinnier option for customers to use. So we

792
00:39:34,040 --> 00:39:37,400
Speaker 15: are waiting to see what happens. I think there you

793
00:39:37,480 --> 00:39:39,040
Speaker 15: can't rule then you out yet.

794
00:39:39,600 --> 00:39:40,400
Speaker 7: I mean, it's interesting.

795
00:39:40,440 --> 00:39:42,600
Speaker 3: Laura Martin, we speak to her often on the show

796
00:39:42,640 --> 00:39:45,640
Speaker 3: from Niedm and analyst saying the injunction thinks she thinks

797
00:39:45,680 --> 00:39:50,040
Speaker 3: gives it as seventy percent chance of killing Venue. But interesting,

798
00:39:50,239 --> 00:39:54,120
Speaker 3: She then says, look, maybe because a Turner WWBD having

799
00:39:54,120 --> 00:39:57,520
Speaker 3: lost the NBA rights, maybe sort of Disney and Fox

800
00:39:57,600 --> 00:40:02,280
Speaker 3: go it alone, or ESPN and Fox too. What ultimately

801
00:40:02,400 --> 00:40:05,040
Speaker 3: is the fight against this? What are the grounds with

802
00:40:05,080 --> 00:40:07,120
Speaker 3: which the lawyer's given this day for the time.

803
00:40:07,760 --> 00:40:09,680
Speaker 15: Yeah, so you know a lot of this comes down

804
00:40:09,800 --> 00:40:12,399
Speaker 15: to antitrust, you know, and making sure that there isn't

805
00:40:12,400 --> 00:40:16,279
Speaker 15: a monopoly raising prices for consumers. And you know there

806
00:40:16,280 --> 00:40:19,440
Speaker 15: are gaps here with the Venue product. You know, there

807
00:40:19,440 --> 00:40:23,440
Speaker 15: are missing football games with the NBA rights being lost

808
00:40:23,640 --> 00:40:26,839
Speaker 15: from Warner Brothers Discovery with a twenty five between twenty

809
00:40:26,880 --> 00:40:30,120
Speaker 15: six season, there will be fewer basketball.

810
00:40:29,640 --> 00:40:30,800
Speaker 7: Options for this service.

811
00:40:31,680 --> 00:40:34,439
Speaker 15: So you could kind of see it both ways, that

812
00:40:34,719 --> 00:40:36,400
Speaker 15: you know there is there could be a place for

813
00:40:36,520 --> 00:40:39,640
Speaker 15: the skinnier bundle, or that it really could end demand

814
00:40:39,640 --> 00:40:40,760
Speaker 15: for services like Fubo.

815
00:40:41,560 --> 00:40:43,440
Speaker 4: We'll kind of real quick. We just have thirty seconds.

816
00:40:43,480 --> 00:40:45,840
Speaker 4: But how is Venue supposed to work? It's number of

817
00:40:45,840 --> 00:40:46,960
Speaker 4: companies in coalition.

818
00:40:47,920 --> 00:40:50,560
Speaker 15: Yeah, so this is supposed to be a skinny bundle.

819
00:40:50,760 --> 00:40:53,000
Speaker 15: This is supposed to provide an offering for people who

820
00:40:53,000 --> 00:40:55,200
Speaker 15: are into cord cutting that they don't want to deal

821
00:40:55,239 --> 00:40:57,879
Speaker 15: with cable that they want to jump on this. It's

822
00:40:57,920 --> 00:41:00,880
Speaker 15: targeting a younger demographic, and this is supposed to be

823
00:41:01,000 --> 00:41:03,279
Speaker 15: something that you could see offerings from all three of

824
00:41:03,320 --> 00:41:05,560
Speaker 15: these players that you could jump to what you wanted,

825
00:41:05,760 --> 00:41:07,879
Speaker 15: that you could tailor it and customize it to the.

826
00:41:07,800 --> 00:41:08,759
Speaker 5: Sports that you like.

827
00:41:09,480 --> 00:41:11,760
Speaker 15: Fuber was saying, Hey, we already do that. We already

828
00:41:11,760 --> 00:41:14,239
Speaker 15: offer a ton of sports. So it'll be interesting to

829
00:41:14,239 --> 00:41:15,560
Speaker 15: see what happens with the appeal.

830
00:41:16,640 --> 00:41:19,800
Speaker 4: I just have so many streaming bundles for sports already.

831
00:41:20,200 --> 00:41:22,120
Speaker 4: Bloomberg Sannah Miller, thank you very much.

832
00:41:22,800 --> 00:41:26,200
Speaker 3: Exasperation that does it. With this edition of Bloomberg Technology.

833
00:41:25,960 --> 00:41:28,480
Speaker 5: ED what a start to the week. Check out the podcast.

834
00:41:28,560 --> 00:41:31,279
Speaker 4: You can find it on the terminal, on Apple, Spotify,

835
00:41:31,400 --> 00:41:33,759
Speaker 4: and iHeart Online. From the team here in San Francisco,

836
00:41:33,840 --> 00:41:39,080
Speaker 4: carrying the team in New York. This is Bloomberg Technology