1 00:00:01,520 --> 00:00:05,840 Speaker 1: From Mahard where Innovation, money and power. Collie in Silicon 2 00:00:05,920 --> 00:00:10,360 Speaker 1: Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 3 00:00:10,600 --> 00:00:11,200 Speaker 1: Ed Ludlove. 4 00:00:24,880 --> 00:00:27,160 Speaker 2: I'm Caroline Heinder Bloomberg's World. I Callders in New York. 5 00:00:27,240 --> 00:00:30,800 Speaker 2: Ed Ludlow He's back tomorrow. This is Bloomberg Technology coming up. 6 00:00:30,840 --> 00:00:34,240 Speaker 2: Full earnings coverage ahead from Google to Microsoft a snap, 7 00:00:34,280 --> 00:00:36,920 Speaker 2: we have got you covered. Plus we'll take a deep 8 00:00:37,000 --> 00:00:39,400 Speaker 2: dive into the current state of social media as Elon 9 00:00:39,440 --> 00:00:42,919 Speaker 2: Muskun veils his grand vision to turn Twitter into x 10 00:00:43,040 --> 00:00:46,760 Speaker 2: into a one stop shop for financial services. Plus we'll 11 00:00:46,800 --> 00:00:49,040 Speaker 2: stick with social media and push your head to Meta's 12 00:00:49,080 --> 00:00:51,920 Speaker 2: earnings out after the bell today. How have those cost 13 00:00:51,920 --> 00:00:56,880 Speaker 2: cutting initiatives impacted the bottom line? We'll discuss it all first. Alphabet, Microsoft, 14 00:00:56,960 --> 00:01:00,560 Speaker 2: some key movers on the benchmarks today. Dive into each 15 00:01:00,600 --> 00:01:03,040 Speaker 2: micro picture and please to say that Daniel Newman of 16 00:01:03,080 --> 00:01:05,440 Speaker 2: the Future and Group is here with our CEO and 17 00:01:05,560 --> 00:01:07,640 Speaker 2: Dania's always great to have some time with you. And 18 00:01:07,720 --> 00:01:10,280 Speaker 2: let's dig into Alphabet first, because it was a good 19 00:01:10,280 --> 00:01:12,520 Speaker 2: set of numbers. Is this a relief rally or is 20 00:01:12,520 --> 00:01:15,800 Speaker 2: this actually signs of progress? And really AI is starting 21 00:01:15,840 --> 00:01:16,600 Speaker 2: to work in their favor. 22 00:01:16,880 --> 00:01:18,720 Speaker 3: Well, I think there was a lot of concern when 23 00:01:18,720 --> 00:01:22,959 Speaker 3: Microsoft first hit with chat, GPT open AI being is 24 00:01:22,959 --> 00:01:25,479 Speaker 3: this going to start taking market share away from where 25 00:01:25,600 --> 00:01:28,480 Speaker 3: Google makes its money and so Cloud, you know, was 26 00:01:28,520 --> 00:01:29,920 Speaker 3: starting to make a little money and all of a 27 00:01:29,920 --> 00:01:31,560 Speaker 3: sudden people are like, ooh, Cloud's starting to make money, 28 00:01:31,560 --> 00:01:32,200 Speaker 3: but his search. 29 00:01:31,959 --> 00:01:33,039 Speaker 1: All of a sudden getting get hit. 30 00:01:33,360 --> 00:01:35,200 Speaker 3: I think we saw with what they were able to 31 00:01:35,240 --> 00:01:38,400 Speaker 3: do with deep mind and brain getting their palm model, 32 00:01:38,440 --> 00:01:42,040 Speaker 3: getting you know, uh, you know, the search generative search 33 00:01:42,200 --> 00:01:45,800 Speaker 3: into market Caroline that effectively they're going to be stable. 34 00:01:46,200 --> 00:01:48,120 Speaker 3: And now you can see what happens today is people 35 00:01:48,160 --> 00:01:50,280 Speaker 3: are looking at Microsoft and saying, was the first move 36 00:01:50,320 --> 00:01:51,600 Speaker 3: truly giving them an advantage? 37 00:01:51,800 --> 00:01:54,200 Speaker 2: Yeah? Interesting. I mean we understand there's reports even that 38 00:01:54,200 --> 00:01:56,800 Speaker 2: Segei Brin's come back into the fold much more, helping 39 00:01:56,880 --> 00:01:59,360 Speaker 2: drive the AI focus for over at Alphabet, But talk 40 00:01:59,400 --> 00:02:02,120 Speaker 2: to us about market share, particularly around cloud, because it 41 00:02:02,160 --> 00:02:04,480 Speaker 2: feels as though azure is the area that everyone's slightly 42 00:02:04,520 --> 00:02:07,400 Speaker 2: worried about. With Microsoft that ramp up the double digits 43 00:02:07,480 --> 00:02:10,000 Speaker 2: rule got so used to just cooling down a little bit. 44 00:02:10,200 --> 00:02:11,880 Speaker 2: Is Alphabet taking any of that. 45 00:02:12,200 --> 00:02:13,760 Speaker 3: Well, they're taking a little bit because you saw they 46 00:02:13,800 --> 00:02:16,320 Speaker 3: had about a twenty eight percent growth this quarter. Microsoft 47 00:02:16,320 --> 00:02:18,000 Speaker 3: was just a little bit less than that, and anytime 48 00:02:18,040 --> 00:02:20,920 Speaker 3: that Google outpaces Microsoft, it means small bits of micro 49 00:02:21,400 --> 00:02:23,359 Speaker 3: market share. Now, having said that, there's a lot of 50 00:02:23,440 --> 00:02:27,320 Speaker 3: large numbers, Azure did reveal some of its size, said 51 00:02:27,360 --> 00:02:29,120 Speaker 3: about one hundred and ten billion in cloud, about half 52 00:02:29,160 --> 00:02:30,840 Speaker 3: of that being Azure I believe were the numbers they 53 00:02:30,840 --> 00:02:32,800 Speaker 3: put out, So they finally revealed a little bit of 54 00:02:32,880 --> 00:02:36,400 Speaker 3: what their cloud market looks like. I mean, Google's you know, 55 00:02:36,560 --> 00:02:39,920 Speaker 3: sub ten tennich billion dollars this quarter in revenue for 56 00:02:40,000 --> 00:02:42,679 Speaker 3: the cloud business, so it's still a bit smaller. 57 00:02:42,880 --> 00:02:45,480 Speaker 1: And so you know, remember when AWUS was growing. They're 58 00:02:45,560 --> 00:02:46,440 Speaker 1: up to eighty. 59 00:02:46,240 --> 00:02:50,680 Speaker 3: Billion dollars in revenue at plus annually. These differences are 60 00:02:50,720 --> 00:02:52,320 Speaker 3: hard to make up, so when you're young and you're 61 00:02:52,360 --> 00:02:55,800 Speaker 3: growing fast care line. Having said that, I think Googles 62 00:02:55,919 --> 00:02:58,040 Speaker 3: has some momentum. I think their AI play is really 63 00:02:58,040 --> 00:03:00,320 Speaker 3: starting to pay off. So they came in late. But 64 00:03:00,320 --> 00:03:02,720 Speaker 3: people are saying, well, you didn't have to be early 65 00:03:02,760 --> 00:03:04,840 Speaker 3: in this case, because we're seeing how quick things are. 66 00:03:04,720 --> 00:03:07,320 Speaker 2: Catching up and whether they were technically late or whether 67 00:03:07,360 --> 00:03:10,040 Speaker 2: they were just being more cautious about a rollout, realizing 68 00:03:10,400 --> 00:03:13,800 Speaker 2: the power that they ultimately have in the in the community, 69 00:03:13,880 --> 00:03:16,799 Speaker 2: their size, their scale. I'm interested in AI more broadly. 70 00:03:16,840 --> 00:03:19,440 Speaker 2: It's interesting here in New York today. I think AWS 71 00:03:19,520 --> 00:03:23,280 Speaker 2: is showing off its AI prowess. How much is AI 72 00:03:23,360 --> 00:03:25,800 Speaker 2: going to drive cloud ad option more broadly, Well. 73 00:03:25,680 --> 00:03:28,480 Speaker 3: It's going to be significant across the board. We saw 74 00:03:28,760 --> 00:03:31,600 Speaker 3: Azure and then Microsoft with Dynamics three sixty five rollout, 75 00:03:31,639 --> 00:03:36,000 Speaker 3: some pricing companies like SAP, companies like Salesforce, they're all saying, 76 00:03:36,200 --> 00:03:38,560 Speaker 3: you want our best AI features, You're going to have 77 00:03:38,560 --> 00:03:41,320 Speaker 3: to use our services in the cloud. And so different 78 00:03:41,320 --> 00:03:45,240 Speaker 3: companies like in SAP, you don't have a hyperscale cloud, 79 00:03:45,320 --> 00:03:47,440 Speaker 3: so you have to use an Azure, or you have 80 00:03:47,480 --> 00:03:50,280 Speaker 3: to use an AWS Salesforce. You have to use their 81 00:03:50,320 --> 00:03:53,760 Speaker 3: service to get the best AI options. And we're seeing 82 00:03:53,760 --> 00:03:56,520 Speaker 3: the market. You know, we've done some recent market forecasting Carolina. 83 00:03:56,560 --> 00:03:58,880 Speaker 3: We see this market growing by about threefold over the 84 00:03:58,960 --> 00:03:59,720 Speaker 3: next five years. 85 00:04:00,640 --> 00:04:03,160 Speaker 2: What exact market we're talking cloud adoption market head. 86 00:04:03,200 --> 00:04:04,880 Speaker 1: We're seeing the AI market. 87 00:04:04,920 --> 00:04:07,480 Speaker 3: So we see about a sixty billion dollar market right now. 88 00:04:08,040 --> 00:04:10,800 Speaker 3: Our future and forecast for five years out twenty twenty 89 00:04:10,840 --> 00:04:13,000 Speaker 3: seven shows almost one hundred and eighty billion. This is 90 00:04:13,000 --> 00:04:16,720 Speaker 3: in hardware, platforms software, So this is you know, a 91 00:04:16,800 --> 00:04:19,240 Speaker 3: twenty two percent or so growth rate, which is big, 92 00:04:19,600 --> 00:04:20,560 Speaker 3: but for how much AI. 93 00:04:20,640 --> 00:04:22,960 Speaker 1: I actually think it's going to be quite a bit bigger. 94 00:04:23,000 --> 00:04:25,040 Speaker 3: And I think some of this forecast is there's still 95 00:04:25,040 --> 00:04:27,360 Speaker 3: a bit of conservatism. I think people are a little 96 00:04:27,400 --> 00:04:29,839 Speaker 3: bit past the hype. Are they using the services? You know, 97 00:04:29,880 --> 00:04:31,880 Speaker 3: I was using barred like crazy, I was using GPT 98 00:04:31,960 --> 00:04:34,000 Speaker 3: and I found myself carrying over the last you know, 99 00:04:34,160 --> 00:04:36,240 Speaker 3: a couple of weeks to month, almost like I'm not 100 00:04:36,360 --> 00:04:38,720 Speaker 3: using them quite as much, so has a luster worn off? 101 00:04:38,800 --> 00:04:41,000 Speaker 3: Or now we're starting to see it applied into tools, 102 00:04:41,120 --> 00:04:42,440 Speaker 3: and that's where it's going to really start to pay 103 00:04:42,440 --> 00:04:44,679 Speaker 3: off in our CRM, in our search when we're actually 104 00:04:44,800 --> 00:04:47,400 Speaker 3: using these things for business and enterprise purposes. 105 00:04:47,600 --> 00:04:50,200 Speaker 2: Dan, can you when you're looking at modeling that out 106 00:04:50,400 --> 00:04:52,440 Speaker 2: for the next five years, what are you using as 107 00:04:52,480 --> 00:04:55,080 Speaker 2: price points? And we're only starting to see what a 108 00:04:55,200 --> 00:04:57,680 Speaker 2: Microsoft would charge if you're going to adopt some of 109 00:04:57,720 --> 00:05:01,320 Speaker 2: their overall being AI within the enterprise thirty bucks a month. Additional, 110 00:05:02,120 --> 00:05:03,880 Speaker 2: how are you seeing companies charge for this, and how 111 00:05:03,880 --> 00:05:04,920 Speaker 2: do you forecast that forward? 112 00:05:05,120 --> 00:05:06,279 Speaker 1: Well, so here's the thing. 113 00:05:06,600 --> 00:05:09,719 Speaker 3: The MODELINGUE is incredibly complicated because you have the modeling 114 00:05:09,760 --> 00:05:11,880 Speaker 3: of things like hardware, where we have quite a bit 115 00:05:11,920 --> 00:05:17,160 Speaker 3: of clarity whether it's an Nvidia, Intel AWS selling infrastructure. 116 00:05:17,360 --> 00:05:19,360 Speaker 3: And then you have software. We have companies that are 117 00:05:19,440 --> 00:05:21,200 Speaker 3: kind of saying, hey, we're going to give this away. 118 00:05:21,760 --> 00:05:22,440 Speaker 1: You know, we're going to. 119 00:05:22,480 --> 00:05:24,760 Speaker 3: Just include this because it's how we protect our moat. 120 00:05:25,160 --> 00:05:27,480 Speaker 3: And then you had Salesforce that showed a really rich 121 00:05:27,640 --> 00:05:29,640 Speaker 3: pricing and said we have a ton of features across 122 00:05:29,680 --> 00:05:33,400 Speaker 3: service marketing, sales Cloud, and you're going to pay a lot, 123 00:05:33,560 --> 00:05:35,599 Speaker 3: but it's going to be very, very feature rich, and 124 00:05:35,640 --> 00:05:38,040 Speaker 3: it's going to be incremental. I think where Microsoft has 125 00:05:38,080 --> 00:05:40,080 Speaker 3: a good play here is that they're going to be 126 00:05:40,160 --> 00:05:43,720 Speaker 3: able to put all these copilots into every part of 127 00:05:43,760 --> 00:05:47,000 Speaker 3: their business. And they charged twenty thirty, but remember they 128 00:05:47,000 --> 00:05:50,799 Speaker 3: have hundreds of millions of users, so even small incremental 129 00:05:50,800 --> 00:05:53,760 Speaker 3: gains across their product portfolio are going to drive it north. 130 00:05:53,760 --> 00:05:55,479 Speaker 3: So I think the reaction today, I mean if I 131 00:05:55,480 --> 00:05:57,280 Speaker 3: was an investor and I was looking at the reaction today, 132 00:05:57,279 --> 00:05:59,359 Speaker 3: I would say it's a little bit of an overreaction. 133 00:05:59,440 --> 00:06:02,200 Speaker 3: But look at how which these companies have run and 134 00:06:02,240 --> 00:06:04,600 Speaker 3: you know, we're resetting. We're saying this AI thing was 135 00:06:04,640 --> 00:06:06,880 Speaker 3: a lot of hype. It's not only hype. It is 136 00:06:06,960 --> 00:06:08,680 Speaker 3: going to be real. But in the long run, the 137 00:06:08,680 --> 00:06:11,520 Speaker 3: way this rebalances companies incremental revenue is going to take 138 00:06:11,560 --> 00:06:12,640 Speaker 3: a little more time to play out. 139 00:06:12,680 --> 00:06:14,480 Speaker 2: And when you looked at that five year forecast, when 140 00:06:14,520 --> 00:06:16,719 Speaker 2: you're thinking of what was it one hundred and eighty 141 00:06:16,760 --> 00:06:20,200 Speaker 2: billion being added? Does that vindicate the sort of valuation 142 00:06:20,279 --> 00:06:22,120 Speaker 2: increases that we have seen so far, or do you 143 00:06:22,160 --> 00:06:23,360 Speaker 2: think they've got ahead of themselves. 144 00:06:23,400 --> 00:06:27,520 Speaker 3: I think the market is early, but it's very indicative 145 00:06:27,680 --> 00:06:30,720 Speaker 3: of where we're going. You can't possibly see tools like 146 00:06:31,440 --> 00:06:34,719 Speaker 3: supply chain management tools HR and hiring tools and see 147 00:06:34,720 --> 00:06:36,640 Speaker 3: how AI could help us get to the right candidate, 148 00:06:36,960 --> 00:06:40,200 Speaker 3: you know, streamline getting product into market. Everything here is 149 00:06:40,240 --> 00:06:43,160 Speaker 3: about productivity gains. And when you think about productivity gains, 150 00:06:43,200 --> 00:06:45,680 Speaker 3: you think about earnings increases, and you think about what 151 00:06:45,720 --> 00:06:47,800 Speaker 3: the market is driven by. It's driven by can a 152 00:06:47,839 --> 00:06:50,440 Speaker 3: company make more money in the future. All these tech 153 00:06:50,480 --> 00:06:53,600 Speaker 3: companies have big bets on AI and we're seeing kind 154 00:06:53,600 --> 00:06:56,120 Speaker 3: of the winners get separated. The companies that are going 155 00:06:56,160 --> 00:06:58,880 Speaker 3: to lag in industries like real estate and oil and gas, 156 00:06:58,880 --> 00:07:02,040 Speaker 3: that's what we're seeing from an AIU standpoint, are going 157 00:07:02,080 --> 00:07:03,200 Speaker 3: to be the ones that are going to be harder 158 00:07:03,200 --> 00:07:05,960 Speaker 3: to invest in. So in every field, what investors need 159 00:07:05,960 --> 00:07:07,839 Speaker 3: to really be looking for is which companies are going 160 00:07:07,920 --> 00:07:11,440 Speaker 3: to see these incremental and then exponential gains because they're 161 00:07:11,440 --> 00:07:12,600 Speaker 3: going to be able to put AI to use. 162 00:07:12,800 --> 00:07:16,840 Speaker 2: And is it from Microsoft, from Alphabet, from Amazon that 163 00:07:17,000 --> 00:07:21,280 Speaker 2: those sectors adopt from or is it more bespoke focused 164 00:07:21,560 --> 00:07:23,480 Speaker 2: AI tools. So we're actually seeing more fun and in 165 00:07:23,520 --> 00:07:24,640 Speaker 2: the venture space right now. 166 00:07:24,760 --> 00:07:26,560 Speaker 1: Well, I think it's going to be partnerships. 167 00:07:26,840 --> 00:07:29,120 Speaker 3: So I think you've seen Jensen Wong of Nvidia out 168 00:07:29,240 --> 00:07:31,640 Speaker 3: announcing partnerships with pretty much every tech company. You see 169 00:07:31,680 --> 00:07:33,720 Speaker 3: him out in healthcare, you see him talking with financials, 170 00:07:33,960 --> 00:07:36,480 Speaker 3: and then of course he's partnering with Hyperscale. 171 00:07:36,000 --> 00:07:37,720 Speaker 1: Cloud providers, SaaS providers. 172 00:07:37,760 --> 00:07:40,280 Speaker 3: You know him and Bill McDermott, we're on stage together 173 00:07:40,320 --> 00:07:41,320 Speaker 3: at the Service Now event. 174 00:07:41,480 --> 00:07:42,960 Speaker 1: I think there's a lot of collaboration. 175 00:07:43,080 --> 00:07:46,880 Speaker 3: I do think vertical specific AI turnline is going to 176 00:07:46,880 --> 00:07:50,920 Speaker 3: be tremendously opportunistic because knowing real estate. 177 00:07:51,240 --> 00:07:53,280 Speaker 1: Knowing retail, you're going to have to build solutions. 178 00:07:53,280 --> 00:07:56,000 Speaker 3: There's too many options, too much optionality of how to 179 00:07:56,000 --> 00:07:58,000 Speaker 3: build an AI solution. People are going to want it 180 00:07:58,040 --> 00:08:00,560 Speaker 3: in a box, just like we wanted CRM or HR 181 00:08:00,720 --> 00:08:02,880 Speaker 3: management solutions. They're not going to want to try to 182 00:08:02,880 --> 00:08:04,440 Speaker 3: build it from scratch, and we've seen that change in 183 00:08:04,480 --> 00:08:05,240 Speaker 3: just a couple of months. 184 00:08:05,360 --> 00:08:07,240 Speaker 2: Dan, great to get some mos of tees. Thank you 185 00:08:07,720 --> 00:08:09,680 Speaker 2: running on over here in a very hot New York. 186 00:08:09,800 --> 00:08:12,200 Speaker 2: Damn newman of the future and group. Great to have 187 00:08:12,280 --> 00:08:14,800 Speaker 2: him on site. Mean, while coming up, look Snap plunging 188 00:08:14,920 --> 00:08:18,000 Speaker 2: after its sales forecast disappoints. We're going to have much 189 00:08:18,040 --> 00:08:20,840 Speaker 2: more next with jument Emburg of Insider Intelligence. Plus, I mean, 190 00:08:20,840 --> 00:08:23,080 Speaker 2: we've got to talk more broadly about the social media space, 191 00:08:23,520 --> 00:08:26,600 Speaker 2: the giant that is Meta reporting earnings after the bell today. Yes, 192 00:08:26,600 --> 00:08:28,400 Speaker 2: there's been the hype about threads, but what about the 193 00:08:28,400 --> 00:08:32,000 Speaker 2: reality of their financial discipline, what about the clampdown on costs? 194 00:08:32,120 --> 00:08:48,400 Speaker 2: This is Bloomberg Technology. Let's talk product now. Samsung unveiling 195 00:08:48,440 --> 00:08:51,840 Speaker 2: it fifth generation of foldable smartphones today, seeking to counter 196 00:08:51,920 --> 00:08:55,360 Speaker 2: a sluggish market for devices and outcoming rival products coming 197 00:08:55,360 --> 00:08:58,000 Speaker 2: from Apple. Some Sung's executive vice president and head of 198 00:08:58,000 --> 00:09:03,120 Speaker 2: Customer Experience Officer Mobile Experience Business. It's quite a long titled. 199 00:09:03,120 --> 00:09:06,400 Speaker 2: As Patrick Truman, he's work exclusively Bluemang News in Seul. 200 00:09:06,559 --> 00:09:07,439 Speaker 2: Just take a listen. 201 00:09:10,200 --> 00:09:15,480 Speaker 4: Before these designed for productivities, we enlarge the ecosystem with 202 00:09:15,640 --> 00:09:19,120 Speaker 4: a range of new application developers in the productivity domain. 203 00:09:19,800 --> 00:09:23,400 Speaker 4: And the multitasking has improved with the taskbar, and that 204 00:09:23,559 --> 00:09:26,840 Speaker 4: is because we have this incredible performance and AI capability 205 00:09:26,880 --> 00:09:28,360 Speaker 4: with the new processor. 206 00:09:28,679 --> 00:09:33,320 Speaker 5: Some Song has this open collaboration environment where like a 207 00:09:33,360 --> 00:09:36,800 Speaker 5: culture for Galaxy, and like Google is part of it, 208 00:09:36,840 --> 00:09:40,760 Speaker 5: and Microsoft and Meta and like they all have some 209 00:09:40,840 --> 00:09:45,440 Speaker 5: kind of agendas to have their own generative AI tools. 210 00:09:45,520 --> 00:09:49,439 Speaker 5: And now that Apple is joining the race, is there 211 00:09:49,480 --> 00:09:52,120 Speaker 5: any like some songs efforts to do it. 212 00:09:52,200 --> 00:09:55,360 Speaker 4: So there is a lot of intelligence and AI at 213 00:09:55,440 --> 00:09:58,959 Speaker 4: play already in many parts of our devices. As said, 214 00:09:59,400 --> 00:10:02,520 Speaker 4: we are working with Google on the partnership for a 215 00:10:02,559 --> 00:10:06,120 Speaker 4: long time and we have a culture to foster the 216 00:10:06,120 --> 00:10:07,000 Speaker 4: innovation together. 217 00:10:07,400 --> 00:10:12,720 Speaker 5: Chinese smartphonemakers like I'm Shoo, me Opo and o'hawe, they're 218 00:10:12,800 --> 00:10:15,880 Speaker 5: all rolling out their own version of voldoble phones with 219 00:10:16,640 --> 00:10:20,000 Speaker 5: cheaper prices. Is there any chance that someone would like 220 00:10:20,080 --> 00:10:25,920 Speaker 5: to provide more foldable prices for foldable users, let's say 221 00:10:25,920 --> 00:10:28,880 Speaker 5: in India or China in the near future. 222 00:10:29,480 --> 00:10:33,840 Speaker 4: Some analysts predict the market to grow beyond one hundred 223 00:10:33,840 --> 00:10:37,360 Speaker 4: million units by twenty twenty seven. In the next three years, 224 00:10:37,559 --> 00:10:40,120 Speaker 4: we really expect to capture a large part of the growth. 225 00:10:40,760 --> 00:10:44,120 Speaker 4: Right now, I can say it's a growing category and 226 00:10:44,360 --> 00:10:50,079 Speaker 4: what dies the appeal the pool is actually quality. It's 227 00:10:50,160 --> 00:10:51,040 Speaker 4: quality and innovation. 228 00:10:51,559 --> 00:10:55,040 Speaker 5: And is there a chance that you're going to add 229 00:10:55,120 --> 00:10:59,760 Speaker 5: more feature about the flip after the fifth generation. 230 00:11:00,080 --> 00:11:02,480 Speaker 4: On the software on the xperiancede, we continue to improve 231 00:11:03,040 --> 00:11:06,720 Speaker 4: many mini experiances with are intelligions coming in more so 232 00:11:06,800 --> 00:11:08,880 Speaker 4: there it's just the beginning. I would say we are 233 00:11:08,920 --> 00:11:11,120 Speaker 4: still at the beginning of a new ar and we 234 00:11:11,160 --> 00:11:12,800 Speaker 4: are very excited about. 235 00:11:12,480 --> 00:11:16,199 Speaker 2: The potent voldable phones now about five percent of the market. 236 00:11:16,200 --> 00:11:18,520 Speaker 2: We understand Samsung's executive vice president and the head of 237 00:11:18,520 --> 00:11:22,800 Speaker 2: customer Experience, that's Patrick Trumman. The Bloomberg's Sue Kim. Let's 238 00:11:22,840 --> 00:11:26,160 Speaker 2: return now to where AI has perhaps been taking away 239 00:11:26,160 --> 00:11:27,719 Speaker 2: a little bit from the bottom line. We're going to 240 00:11:27,760 --> 00:11:29,960 Speaker 2: talk snap right now, tumbling today, after the social media 241 00:11:30,000 --> 00:11:33,960 Speaker 2: company reported well second quored results that gave revenue outlooks 242 00:11:34,000 --> 00:11:36,959 Speaker 2: a little bit weaker than expected, even as it continues 243 00:11:37,000 --> 00:11:39,800 Speaker 2: to invest in new ways you can be advertising on 244 00:11:39,840 --> 00:11:42,000 Speaker 2: the platform. Let's talk about the earnings, and we're broadly 245 00:11:42,000 --> 00:11:45,280 Speaker 2: about social media landscape. Jasmine mbugs with us lead coverage 246 00:11:45,280 --> 00:11:48,160 Speaker 2: of influencer marketing and social commerce and insider intelligence. Of 247 00:11:48,200 --> 00:11:51,360 Speaker 2: course you look at Snapchat, you also look at TikTok, Instagram, YouTube, Twitter, 248 00:11:51,440 --> 00:11:54,560 Speaker 2: now x Facebook will get onto all of them. But jusmin, 249 00:11:55,080 --> 00:11:57,240 Speaker 2: I mean Snap always does this. It feels like it 250 00:11:57,280 --> 00:12:01,520 Speaker 2: has pretty volatile reaction to earnings and often to the downside. 251 00:12:01,840 --> 00:12:05,040 Speaker 2: Is there hope that in the forward looking future we 252 00:12:05,120 --> 00:12:08,120 Speaker 2: will start to see well benefits of the investments they made. 253 00:12:10,240 --> 00:12:12,600 Speaker 6: Yeah, well, Snap is clearly not out of its revenue 254 00:12:12,600 --> 00:12:15,400 Speaker 6: slump yet, and prior to earnings yesterday, I had said 255 00:12:15,440 --> 00:12:17,800 Speaker 6: that its ad business wouldn't start to turn around until 256 00:12:17,840 --> 00:12:20,200 Speaker 6: at least the second half of this year, and now 257 00:12:20,200 --> 00:12:23,040 Speaker 6: it's looking like Q four at the earliest. But despite 258 00:12:23,080 --> 00:12:25,680 Speaker 6: the weak guidance for Q three, there were plenty of 259 00:12:25,760 --> 00:12:28,720 Speaker 6: bright spots to look to, and its earnings, Snap made 260 00:12:28,760 --> 00:12:31,480 Speaker 6: all of the right moves. During Q two, it worked 261 00:12:31,520 --> 00:12:35,320 Speaker 6: to strengthen its user base, diversify its revenue streams, and 262 00:12:35,400 --> 00:12:38,120 Speaker 6: improve on its ad platform. We saw a couple of 263 00:12:38,160 --> 00:12:42,120 Speaker 6: positive signs already from those efforts, including in the number 264 00:12:42,160 --> 00:12:47,800 Speaker 6: of active advertisers as well as advertiser retention. There's clearly 265 00:12:47,840 --> 00:12:50,160 Speaker 6: still a lot of work to do, and efforts to 266 00:12:50,280 --> 00:12:53,880 Speaker 6: diversify its revenue streams through Snapchat Plus, for example, will 267 00:12:53,880 --> 00:12:57,680 Speaker 6: take time to actually have an impact on its bottom line. 268 00:12:58,200 --> 00:13:01,679 Speaker 6: And my AI is where I'm most hopeful for Snap's 269 00:13:01,679 --> 00:13:04,320 Speaker 6: business in the future, because it really does or has 270 00:13:04,320 --> 00:13:08,280 Speaker 6: the potential, to give Snapchat access to first party data 271 00:13:08,360 --> 00:13:11,960 Speaker 6: that it can use to serve more relevant content and 272 00:13:11,880 --> 00:13:15,000 Speaker 6: advertising across its surfaces, and actually making up for some 273 00:13:15,040 --> 00:13:17,240 Speaker 6: of those lost signals from Apple's privacy changes. 274 00:13:17,640 --> 00:13:20,240 Speaker 2: Interesting that, of course, a subscription model therefore still to 275 00:13:20,280 --> 00:13:23,680 Speaker 2: bear fruit. What's interesting is well, other companies have started 276 00:13:23,720 --> 00:13:26,080 Speaker 2: to do subscription models, and we think of the way 277 00:13:26,080 --> 00:13:29,000 Speaker 2: in which Twitter now X is trying to monetize, trying 278 00:13:29,000 --> 00:13:31,720 Speaker 2: to make up for some advertising weakness, to the tune 279 00:13:31,720 --> 00:13:35,160 Speaker 2: of fifty percent, what have you been making of social media? 280 00:13:35,200 --> 00:13:37,520 Speaker 2: More broadly, the competition, the fact that everyone seems to 281 00:13:37,520 --> 00:13:39,520 Speaker 2: be on each other's toes. Can you just talk about 282 00:13:39,760 --> 00:13:41,880 Speaker 2: X and the rebrand for a moment, What do you 283 00:13:41,880 --> 00:13:42,319 Speaker 2: make of it? 284 00:13:43,880 --> 00:13:44,000 Speaker 7: Well? 285 00:13:44,040 --> 00:13:45,480 Speaker 6: Absolutely, I mean, first of all, there is a ton 286 00:13:45,520 --> 00:13:47,920 Speaker 6: of competition in social media. That's another reason, of course 287 00:13:47,920 --> 00:13:51,760 Speaker 6: why Snap continues to struggle. But with X and the rebrand, 288 00:13:51,800 --> 00:13:54,680 Speaker 6: I mean, it was a massive moment for social media. 289 00:13:54,720 --> 00:13:57,480 Speaker 6: It really truly is the end of an era. I mean, 290 00:13:57,520 --> 00:14:01,000 Speaker 6: Twitter is an incredibly recognizable brand. The word tweet is 291 00:14:01,040 --> 00:14:04,120 Speaker 6: part of the public consciousness, but the rating was also 292 00:14:04,240 --> 00:14:06,960 Speaker 6: on the wall here. I mean, Musk has been very 293 00:14:07,040 --> 00:14:11,720 Speaker 6: vocal about transforming Twitter into X. I think the timing 294 00:14:11,880 --> 00:14:14,480 Speaker 6: in some ways was right. You know, Musk is a 295 00:14:14,640 --> 00:14:17,800 Speaker 6: master of media, and he may have wanted his news 296 00:14:17,800 --> 00:14:20,560 Speaker 6: cycle back, but that that's not to say that this 297 00:14:21,240 --> 00:14:25,560 Speaker 6: wasn't coming. The question now is, though, you know, there's 298 00:14:25,600 --> 00:14:28,880 Speaker 6: obviously a vision for X, but what is the strategy 299 00:14:28,920 --> 00:14:29,400 Speaker 6: behind it? 300 00:14:29,440 --> 00:14:30,560 Speaker 2: Does he truly have one? 301 00:14:30,600 --> 00:14:33,840 Speaker 6: Because super apps, of course, are unproven in most of 302 00:14:33,880 --> 00:14:35,640 Speaker 6: the Western world, including in the. 303 00:14:35,680 --> 00:14:38,320 Speaker 2: US, Can you tell us a little bit about super apps? 304 00:14:38,360 --> 00:14:41,400 Speaker 2: It feels like maybe everyone's trying to build them right now. 305 00:14:41,440 --> 00:14:43,440 Speaker 2: I mean, of course, in the past what's interesting about 306 00:14:43,600 --> 00:14:46,320 Speaker 2: X is there's a real focus on payments that are 307 00:14:46,360 --> 00:14:48,240 Speaker 2: going forward, and we know that, you know, Musk, that's 308 00:14:48,240 --> 00:14:50,320 Speaker 2: where it's made a fortune to begin with this PayPal, 309 00:14:50,400 --> 00:14:53,280 Speaker 2: But PayPal can never quite make the cross that rubicon 310 00:14:53,360 --> 00:14:55,840 Speaker 2: in terms of actual banking services. You look at how 311 00:14:56,160 --> 00:15:01,160 Speaker 2: meta originally Facebook was looking at its own payments infrastructure 312 00:15:01,200 --> 00:15:04,200 Speaker 2: and wipe that away. And then it feels like TikTok 313 00:15:04,280 --> 00:15:07,800 Speaker 2: is starting to get in on the text based communication 314 00:15:07,960 --> 00:15:10,800 Speaker 2: as well. Is everyone eventually going to try and go 315 00:15:10,880 --> 00:15:12,280 Speaker 2: for some sort of we chat model. 316 00:15:12,920 --> 00:15:15,080 Speaker 6: Well, it looks like everybody wants to do a little 317 00:15:15,120 --> 00:15:17,000 Speaker 6: bit of everything, right, but with the we chat model 318 00:15:17,000 --> 00:15:18,880 Speaker 6: in particular, I mean that is one that Musk has 319 00:15:18,920 --> 00:15:22,040 Speaker 6: pointed to for you know, over a year now. And 320 00:15:22,920 --> 00:15:25,920 Speaker 6: the reason why super apps really haven't taken off in 321 00:15:25,960 --> 00:15:29,000 Speaker 6: the US is one, you know, we have established habits, 322 00:15:29,000 --> 00:15:31,680 Speaker 6: We are used to doing different activities in different apps, 323 00:15:31,680 --> 00:15:34,800 Speaker 6: and it is incredibly difficult to change consumer behavior. There's 324 00:15:34,800 --> 00:15:37,080 Speaker 6: also a lot of privacy concerns, especially when you move 325 00:15:37,120 --> 00:15:40,120 Speaker 6: into things like payments and financial services. People have to 326 00:15:40,160 --> 00:15:43,920 Speaker 6: hand over a lot of personal and payment information and 327 00:15:43,960 --> 00:15:47,360 Speaker 6: they're not necessarily willing to do that, especially on a 328 00:15:47,400 --> 00:15:51,920 Speaker 6: social media platform. In some ways, I understand the rebranding 329 00:15:52,000 --> 00:15:54,920 Speaker 6: as Musk is trying to move towards this exhivision of 330 00:15:54,960 --> 00:15:59,040 Speaker 6: a super app, because it does distance the company from, 331 00:15:59,080 --> 00:16:01,840 Speaker 6: you know, the problem that did exist at Twitter before. 332 00:16:02,280 --> 00:16:05,680 Speaker 6: But there's a lack of trust and Musk itself himself too. 333 00:16:06,040 --> 00:16:09,440 Speaker 6: And X of course is a new company or a 334 00:16:09,480 --> 00:16:13,920 Speaker 6: new brand that really doesn't have that same kind of recognition. 335 00:16:14,000 --> 00:16:16,960 Speaker 2: But they do actually have a CEO who's very well 336 00:16:17,000 --> 00:16:21,520 Speaker 2: known within the spending market area, and Lindi Akarino doing 337 00:16:21,520 --> 00:16:24,960 Speaker 2: her best to navigate X as Zeno Musk does appear 338 00:16:25,040 --> 00:16:28,320 Speaker 2: from the outside looking in very much still calling the shots. 339 00:16:28,600 --> 00:16:32,120 Speaker 2: How much do you think, just in general, were at 340 00:16:32,120 --> 00:16:35,080 Speaker 2: some sort of bottom when it comes to advertising sentiment 341 00:16:35,160 --> 00:16:38,120 Speaker 2: here because I asked report at that of Alphabet and 342 00:16:38,600 --> 00:16:40,800 Speaker 2: she didn't really want to make any sort of call there. 343 00:16:43,400 --> 00:16:46,800 Speaker 6: Well, one of the biggest challenges Linda Yakarino was always 344 00:16:46,840 --> 00:16:50,280 Speaker 6: going to have was balancing Musk's vision for the platform 345 00:16:50,320 --> 00:16:53,840 Speaker 6: with what Twitter users and advertisers want. You know, it 346 00:16:53,920 --> 00:16:55,880 Speaker 6: was never going to be an easy job, even for 347 00:16:55,960 --> 00:16:59,800 Speaker 6: somebody with as much experiences as Yakarino. I think that 348 00:17:00,080 --> 00:17:03,080 Speaker 6: early optimism that you know a lot of people had, 349 00:17:03,120 --> 00:17:07,600 Speaker 6: including myself after her appointment, has faded and is mostly gone. 350 00:17:07,640 --> 00:17:09,560 Speaker 6: At this point, we can tell that, you know, Elon 351 00:17:09,640 --> 00:17:12,800 Speaker 6: Musk is very much still calling the shots, and publicly 352 00:17:12,840 --> 00:17:15,520 Speaker 6: she hasn't said much more than applaud many of these 353 00:17:15,600 --> 00:17:19,160 Speaker 6: changes and his vision. Of course, you know, the Twitter's 354 00:17:19,240 --> 00:17:24,120 Speaker 6: ad revenue struggles are very very well documented and there 355 00:17:24,160 --> 00:17:26,879 Speaker 6: hasn't been much movement in a more positive direction, and 356 00:17:26,880 --> 00:17:29,080 Speaker 6: it's going to be even more difficult to do so now. 357 00:17:29,920 --> 00:17:33,080 Speaker 2: In Cider Intelligence, principal analyst Jasmine Enberg, it is such 358 00:17:33,080 --> 00:17:35,639 Speaker 2: a busy space and you're always so clear thinking and 359 00:17:35,680 --> 00:17:38,240 Speaker 2: click out about it. We appreciate it a lot. From 360 00:17:38,280 --> 00:17:38,680 Speaker 2: New York. 361 00:17:39,040 --> 00:18:22,160 Speaker 8: It's a blue meg technology. 362 00:18:29,640 --> 00:18:32,320 Speaker 9: I've always been a person who's just been attracted to hair. 363 00:18:33,160 --> 00:18:35,480 Speaker 9: I like to sit and think and theorize how I 364 00:18:35,520 --> 00:18:39,800 Speaker 9: can manifest these visions that I have for braiding, and 365 00:18:39,880 --> 00:18:42,280 Speaker 9: how I can take something that may seem like it's 366 00:18:42,280 --> 00:18:44,800 Speaker 9: a line drawing in my mind and apply that to 367 00:18:44,840 --> 00:18:45,600 Speaker 9: someone's scalp. 368 00:18:46,800 --> 00:18:50,840 Speaker 10: We are the only culture that has hair that grows 369 00:18:50,920 --> 00:18:53,480 Speaker 10: out of our head the way that it does anyone 370 00:18:53,520 --> 00:18:58,760 Speaker 10: from the African diaspora is born with this amazingly curly 371 00:18:58,880 --> 00:19:02,600 Speaker 10: hair that can be shaped into a variety of different 372 00:19:02,600 --> 00:19:03,600 Speaker 10: ways of expression. 373 00:19:05,240 --> 00:19:07,480 Speaker 9: I want Black people to love themselves for how they 374 00:19:07,720 --> 00:19:12,520 Speaker 9: naturally appear, and also to appreciate the cultural practices such 375 00:19:12,520 --> 00:19:15,960 Speaker 9: as braiding, that our ancestors have practiced for centuries. 376 00:19:52,920 --> 00:19:55,199 Speaker 2: It's time now for work shifting, where we look at 377 00:19:55,200 --> 00:19:58,879 Speaker 2: the changing landscape for the labor market amid advances in technology, 378 00:19:58,920 --> 00:20:01,639 Speaker 2: and we therefore to look at how the head of 379 00:20:01,680 --> 00:20:05,399 Speaker 2: the largest US private sector union, Teamsters is turning his 380 00:20:05,480 --> 00:20:07,400 Speaker 2: attention to e commerce giant Amazon. 381 00:20:09,520 --> 00:20:12,160 Speaker 11: Amazon's definitely going to be a target to organize. We're 382 00:20:12,160 --> 00:20:15,440 Speaker 11: going to take this historic agreement and use it as 383 00:20:15,440 --> 00:20:18,840 Speaker 11: a temple to show the Amazon workers what they will 384 00:20:19,040 --> 00:20:21,320 Speaker 11: receive when they join the team Stite union and we 385 00:20:21,480 --> 00:20:23,080 Speaker 11: organize them. 386 00:20:23,280 --> 00:20:25,800 Speaker 2: Of course, this comes just hours after reaching a tentative 387 00:20:25,840 --> 00:20:28,920 Speaker 2: deal to boost pay and benefits for hundreds of thousands 388 00:20:29,040 --> 00:20:32,880 Speaker 2: of UPS workers. Brilliant plus, Google, the Microsoft, and Open 389 00:20:32,920 --> 00:20:36,159 Speaker 2: Ai are launching a safety model for artificial intelligence. The effort, 390 00:20:36,200 --> 00:20:39,520 Speaker 2: called the Frontier Model Forum, aims to consolidate the expertise 391 00:20:39,560 --> 00:20:43,920 Speaker 2: and member companies and create new AI industry standards meanwhile, 392 00:20:43,960 --> 00:20:47,640 Speaker 2: and is planning a restructuring now. The jackmar backed company 393 00:20:47,760 --> 00:20:50,480 Speaker 2: is looking to break off its blockchain and overseas units 394 00:20:50,520 --> 00:20:52,959 Speaker 2: to pave a way for its revival of an initial 395 00:20:52,960 --> 00:20:55,119 Speaker 2: public offering, and that's likely to be down out of 396 00:20:55,119 --> 00:20:57,600 Speaker 2: Hong Kong rather than that duel listing that was initially 397 00:20:57,640 --> 00:21:00,840 Speaker 2: targeted in Shanghai and Hong Kong. That of course comes 398 00:21:00,880 --> 00:21:03,440 Speaker 2: over after a change of ownership that prevents them doing 399 00:21:03,440 --> 00:21:06,920 Speaker 2: that in Shanghai for at least three years. Meanwhile, coming up, 400 00:21:07,160 --> 00:21:10,320 Speaker 2: part of the Elon Musk grand vision to rebrand Twitter 401 00:21:10,359 --> 00:21:13,600 Speaker 2: into an everything app includes pushing into financial services. We're 402 00:21:13,640 --> 00:21:16,160 Speaker 2: just talking about with Jasmine Enburg, but let's talk about 403 00:21:16,160 --> 00:21:18,879 Speaker 2: whether he can really succeed where some other tech giants 404 00:21:18,920 --> 00:21:22,520 Speaker 2: have failed to really bring on board the banking services 405 00:21:22,640 --> 00:21:25,880 Speaker 2: within a social media company. Plus, watching shares at teledoc, 406 00:21:26,680 --> 00:21:30,760 Speaker 2: this shares absolutely surging well a quarter for their entire 407 00:21:30,800 --> 00:21:33,960 Speaker 2: market cap today, best move since February twenty twenty. The 408 00:21:34,040 --> 00:21:36,280 Speaker 2: virtual healthcare provider is raising the bottom end of its 409 00:21:36,280 --> 00:21:39,120 Speaker 2: revenue forecast range for the full year. Annaly is saying 410 00:21:39,119 --> 00:21:42,359 Speaker 2: that that burns control over its costs because bearing fruit 411 00:21:42,600 --> 00:21:45,240 Speaker 2: even as it faces a tough backdrop, so much more 412 00:21:45,240 --> 00:21:46,760 Speaker 2: on earnings to come from New York. 413 00:21:46,840 --> 00:21:49,080 Speaker 8: This is Bloomberg Technology. 414 00:21:59,040 --> 00:22:01,320 Speaker 2: Welcome back to Bluebg Technology. I'm Caarenhid in New York. 415 00:22:01,359 --> 00:22:03,040 Speaker 2: Quick check on the markets because the day is a 416 00:22:03,119 --> 00:22:06,040 Speaker 2: day of macro data and decision making. You've got to 417 00:22:06,040 --> 00:22:07,960 Speaker 2: be focused in on what happening with the Fed. Of course, 418 00:22:08,200 --> 00:22:11,920 Speaker 2: most anticipating there will be some sort of rate hike. 419 00:22:12,000 --> 00:22:14,080 Speaker 2: The question is will there be signal for rate hike 420 00:22:14,160 --> 00:22:16,800 Speaker 2: comes September two? Many feeling that that shouldn't be taken 421 00:22:16,840 --> 00:22:19,720 Speaker 2: off the table in terms of an option, even as 422 00:22:19,760 --> 00:22:22,239 Speaker 2: we do see inflation starts. Cool Naza currently off by 423 00:22:22,280 --> 00:22:24,320 Speaker 2: four ten percent and large part on the back of 424 00:22:24,600 --> 00:22:26,920 Speaker 2: key earnings. Microsoft just pulling us a little bit lower 425 00:22:26,960 --> 00:22:28,879 Speaker 2: the Dow I show it only because it's on his 426 00:22:29,000 --> 00:22:32,280 Speaker 2: best run since nineteen eighty seven. Folks, thirteen straight days 427 00:22:32,280 --> 00:22:34,600 Speaker 2: of games. Bitcoin does have about two tens percent, but 428 00:22:34,640 --> 00:22:36,880 Speaker 2: it looks we're still languishing around thirty thousand. In fact, 429 00:22:36,920 --> 00:22:40,080 Speaker 2: volumes are the lowest in thirty months in terms of 430 00:22:40,320 --> 00:22:42,840 Speaker 2: spot Bitcoin training. We understand moving on and we go 431 00:22:42,920 --> 00:22:46,160 Speaker 2: to some in particular earnings that maybe we've missed out. 432 00:22:46,200 --> 00:22:46,439 Speaker 12: So far. 433 00:22:46,480 --> 00:22:48,600 Speaker 2: I mean, we haven't missed Outabet just leading the pack 434 00:22:48,680 --> 00:22:51,080 Speaker 2: when it comes to the outperformance on benchmarks today up 435 00:22:51,080 --> 00:22:54,280 Speaker 2: almost six percent. Remember new role being expanded for with 436 00:22:54,480 --> 00:22:56,600 Speaker 2: poorat as she looks for a new CFO but takes 437 00:22:56,600 --> 00:22:59,399 Speaker 2: the reins of CIO and indeed president. But most notably 438 00:22:59,400 --> 00:23:02,119 Speaker 2: this is a company that's managing to show advertising coming 439 00:23:02,160 --> 00:23:05,120 Speaker 2: back five percent increase in particular on that advertising juggernaut. 440 00:23:05,119 --> 00:23:07,200 Speaker 2: We're looking at eBay just up three tens of percent 441 00:23:07,560 --> 00:23:12,360 Speaker 2: results of all some software is merchandise maybe was being anticipated, 442 00:23:12,400 --> 00:23:14,440 Speaker 2: but we keep an eye on what's happening in terms 443 00:23:14,480 --> 00:23:17,879 Speaker 2: of eBay and then look ahead to its own earnings 444 00:23:17,960 --> 00:23:20,680 Speaker 2: coming a little bit later. We look at targets being 445 00:23:20,760 --> 00:23:22,960 Speaker 2: raised ahead of them to fifty dollars by Jeffreys in fact, 446 00:23:23,000 --> 00:23:24,879 Speaker 2: that came yesterday. I'm looking at what's happening with in 447 00:23:24,960 --> 00:23:27,040 Speaker 2: terms of Micron. We're up to and a quarter of 448 00:23:27,040 --> 00:23:30,879 Speaker 2: a percent now. Micron actually getting some strong talk coming 449 00:23:31,200 --> 00:23:35,880 Speaker 2: from video moves in terms of its memory chips could 450 00:23:35,880 --> 00:23:38,480 Speaker 2: be advantageous. We understand some analysts signaling that this is 451 00:23:38,480 --> 00:23:41,920 Speaker 2: looking brighter for Micron, particularly in its application to artificial intelligence. 452 00:23:41,960 --> 00:23:44,160 Speaker 2: We're up to and a quarter percent, unlike the rest 453 00:23:44,200 --> 00:23:47,520 Speaker 2: of the chip sector after Texas Instruments. Now let's move 454 00:23:47,520 --> 00:23:50,680 Speaker 2: away from earnings and go back to the billion billionaire 455 00:23:50,680 --> 00:23:54,560 Speaker 2: Elon Musk, known for you know, dabbling in different sectors aerospace, 456 00:23:54,680 --> 00:23:58,720 Speaker 2: electric cars, course more recently social media and AI. But 457 00:23:58,760 --> 00:24:02,480 Speaker 2: he's rebranded Twitter to X. Musk is buying to actually 458 00:24:02,600 --> 00:24:05,399 Speaker 2: got back to his previous role as a banker. Re 459 00:24:05,600 --> 00:24:08,360 Speaker 2: Magni's Finance Reports of Jenny Strain has a great piece out, 460 00:24:08,440 --> 00:24:12,919 Speaker 2: what are you thinking about the tough task X has 461 00:24:13,240 --> 00:24:17,320 Speaker 2: to into wee've financial transactions, maybe even banking. This is 462 00:24:17,359 --> 00:24:20,560 Speaker 2: all about becoming a super app. But it's a tough 463 00:24:20,560 --> 00:24:23,400 Speaker 2: space to get into. Yeah, I mean that's exactly right. 464 00:24:23,440 --> 00:24:27,280 Speaker 12: We've seen many, many tech giants go before him, and 465 00:24:27,359 --> 00:24:29,840 Speaker 12: we really haven't seen much traction. You know, you have 466 00:24:29,920 --> 00:24:33,280 Speaker 12: the likes of the Facebook or Google, even Amazon. You 467 00:24:33,320 --> 00:24:35,399 Speaker 12: know where they've gone this path. It really hasn't been 468 00:24:35,440 --> 00:24:37,800 Speaker 12: as successful as they you know, might have hoped when 469 00:24:37,800 --> 00:24:40,000 Speaker 12: they first set out. And it's just because banking is 470 00:24:40,000 --> 00:24:43,679 Speaker 12: a really hard space. It's highly regulated. The relationships that 471 00:24:43,720 --> 00:24:46,000 Speaker 12: big banks have with their consumers are extremely sticky and 472 00:24:46,240 --> 00:24:49,960 Speaker 12: hard to disintermediate. So Elon's got some high hopes here 473 00:24:49,960 --> 00:24:52,720 Speaker 12: and it'll be a really tough road duho to to 474 00:24:52,800 --> 00:24:53,639 Speaker 12: you know, get to where. 475 00:24:53,480 --> 00:24:56,840 Speaker 2: He wants to get, because ultimately we've not only seen, 476 00:24:57,000 --> 00:24:59,760 Speaker 2: as you say, the likes of Alphabet sort of drop 477 00:24:59,800 --> 00:25:03,040 Speaker 2: all plans to eventually odd banking services. We saw, of course, 478 00:25:03,160 --> 00:25:05,800 Speaker 2: what happened with liber and the long road it took 479 00:25:05,880 --> 00:25:09,520 Speaker 2: to get crypto interwoven within now Meta and that didn't 480 00:25:09,520 --> 00:25:12,920 Speaker 2: pull off. But PayPal, I mean what ultimately Elon is 481 00:25:13,000 --> 00:25:16,480 Speaker 2: original x dot com became they couldn't even offer banking 482 00:25:16,520 --> 00:25:19,800 Speaker 2: service as a wealth management ride. It's still a transaction company. Yeah, no, 483 00:25:19,920 --> 00:25:20,840 Speaker 2: that's exactly right. 484 00:25:20,920 --> 00:25:23,639 Speaker 12: So it was about two years ago actually where PayPal 485 00:25:23,680 --> 00:25:25,520 Speaker 12: had set out on this big journey where they wanted 486 00:25:25,560 --> 00:25:27,560 Speaker 12: to be that super app and they had a big, 487 00:25:27,640 --> 00:25:29,760 Speaker 12: ambitious goal that they would have seven hundred and fifty 488 00:25:29,760 --> 00:25:32,280 Speaker 12: million users and they were going to be kind of 489 00:25:32,320 --> 00:25:37,199 Speaker 12: the one stop financial spot for consumers. And two years on, 490 00:25:37,320 --> 00:25:39,960 Speaker 12: you know, they have seen their s thoughts tank, they've 491 00:25:40,000 --> 00:25:41,840 Speaker 12: had to really retrench, they've had to focus on that 492 00:25:41,920 --> 00:25:44,240 Speaker 12: core checkout but and that kind of everyone knows PayPal for. 493 00:25:45,119 --> 00:25:46,960 Speaker 12: So it really just shows that even when you already 494 00:25:47,000 --> 00:25:49,680 Speaker 12: have a background in finance, you know, it's really hard 495 00:25:49,720 --> 00:25:51,560 Speaker 12: to kind of push that envelope and go into that 496 00:25:51,600 --> 00:25:54,359 Speaker 12: next step. And really a lot of these folks just 497 00:25:54,480 --> 00:25:55,960 Speaker 12: end up having to stick to their knitting. 498 00:25:55,720 --> 00:25:59,959 Speaker 2: Here, and as our resident fintech expert, as our banking expert, 499 00:26:00,160 --> 00:26:03,080 Speaker 2: you'll know more than anyone that it's ulto many trust 500 00:26:03,520 --> 00:26:06,119 Speaker 2: that they have to build. Not everyone at the moment 501 00:26:06,160 --> 00:26:08,840 Speaker 2: feels all that trusting of whatever you know Musk is 502 00:26:08,880 --> 00:26:11,080 Speaker 2: doing in social media. Yeah, I think that's such a 503 00:26:11,080 --> 00:26:12,840 Speaker 2: great point. You know, especially in the US. 504 00:26:13,000 --> 00:26:15,320 Speaker 12: We're a very different market than say China, where super 505 00:26:15,359 --> 00:26:18,080 Speaker 12: aps have actually taken off, and consumers have shown this 506 00:26:18,200 --> 00:26:22,479 Speaker 12: really big willingness to bank and do shopping and do 507 00:26:22,520 --> 00:26:24,960 Speaker 12: their social media all with one company. We've seen it 508 00:26:24,960 --> 00:26:27,640 Speaker 12: with Ali pay, We've seen it with WeChat pay. They 509 00:26:27,680 --> 00:26:29,720 Speaker 12: haven't had that same willingness here in the US. They 510 00:26:29,760 --> 00:26:31,840 Speaker 12: seem to really like the fact that they get their 511 00:26:31,880 --> 00:26:33,760 Speaker 12: banking services from a bank, and they get their social 512 00:26:33,800 --> 00:26:36,679 Speaker 12: media services from a social media company, and they get 513 00:26:36,720 --> 00:26:38,960 Speaker 12: their commerce from an Amazon. 514 00:26:38,680 --> 00:26:39,520 Speaker 2: Or a retailer. 515 00:26:39,600 --> 00:26:42,359 Speaker 12: So there's that trust piece, and there's this really that 516 00:26:42,440 --> 00:26:45,040 Speaker 12: willingness not to kind of cross those borders. They like 517 00:26:45,119 --> 00:26:47,840 Speaker 12: those things to be very segmented. And to your point, 518 00:26:47,840 --> 00:26:49,560 Speaker 12: you know, Elon's on a name they know in banking. 519 00:26:49,600 --> 00:26:51,680 Speaker 12: They know him as Tesla, they know him as Bacex. 520 00:26:51,720 --> 00:26:54,119 Speaker 12: So it would be kind of interesting to see if 521 00:26:54,119 --> 00:26:56,600 Speaker 12: you can bridge that gap, because it's hasn't been done 522 00:26:56,600 --> 00:26:59,360 Speaker 12: before really successfully here in the US. 523 00:26:59,320 --> 00:27:03,560 Speaker 2: With an Indigaco couldn't do that as well, Who, if anyone, 524 00:27:04,200 --> 00:27:06,920 Speaker 2: would be the most to lose if X could crack 525 00:27:07,000 --> 00:27:10,760 Speaker 2: this from like a wealth management? Is it the online 526 00:27:10,960 --> 00:27:13,679 Speaker 2: wealth managers? Is it the banks lose out? Who really hurts? 527 00:27:14,080 --> 00:27:17,760 Speaker 12: He seems really keen on payments, and so I mean 528 00:27:17,800 --> 00:27:20,520 Speaker 12: I think PayPal, I think an Apple pay, I think 529 00:27:20,640 --> 00:27:24,439 Speaker 12: the credit card companies. So I think payment seems to 530 00:27:24,480 --> 00:27:26,520 Speaker 12: be what he's most interested in. It makes sense. It's 531 00:27:26,560 --> 00:27:29,159 Speaker 12: the piece of finance that consumers touch every day. And 532 00:27:29,200 --> 00:27:30,760 Speaker 12: so when you look at a tech company that just 533 00:27:30,760 --> 00:27:33,639 Speaker 12: really wants to gen up usage, payments makes the most sense. 534 00:27:33,680 --> 00:27:37,040 Speaker 12: And so you know in that it's a very hotly 535 00:27:37,040 --> 00:27:39,639 Speaker 12: competitive field, and so I think you'd see lots of 536 00:27:40,000 --> 00:27:42,280 Speaker 12: pressure on different players, whether it's a bank or even 537 00:27:42,400 --> 00:27:43,679 Speaker 12: a payments company like a PayPal. 538 00:27:44,320 --> 00:27:46,960 Speaker 2: Well, many have learned that to their detriment to bet 539 00:27:47,000 --> 00:27:50,000 Speaker 2: against you, Muss. So we'll see whether you can cross 540 00:27:50,040 --> 00:27:52,920 Speaker 2: this particular vercon. Thank you, Jenny Surine Go check out 541 00:27:52,920 --> 00:28:03,240 Speaker 2: her story. It's brilliant time now for our VC Spotlight 542 00:28:03,320 --> 00:28:05,360 Speaker 2: prime Mover's lab. Well, it's plays two hundred and forty 543 00:28:05,400 --> 00:28:08,040 Speaker 2: five million dollars to back young startups working on some 544 00:28:08,119 --> 00:28:12,560 Speaker 2: unconventional ranges of technologies. The firm specializers in making investments 545 00:28:12,720 --> 00:28:15,720 Speaker 2: kind of at the edge what's technically possible, including brain implants, 546 00:28:15,800 --> 00:28:20,000 Speaker 2: psychedelics related therapies, space infrastructure, new funding rings its total 547 00:28:20,000 --> 00:28:22,679 Speaker 2: assets under management to more than one point two billion dollars. 548 00:28:23,359 --> 00:28:25,919 Speaker 2: Let's get more on well, the state of venture capital 549 00:28:26,200 --> 00:28:30,320 Speaker 2: and some exits finally occurring. Rebecca Lynn, the co founder 550 00:28:30,359 --> 00:28:33,000 Speaker 2: and general partner of Canvas Ventures, is a firm specializing 551 00:28:33,000 --> 00:28:36,199 Speaker 2: in fintech in artificial intelligence, among other things. And Rebecca, 552 00:28:36,280 --> 00:28:37,760 Speaker 2: what you've got eight hundred and thirty five millions in 553 00:28:37,800 --> 00:28:40,560 Speaker 2: assets under management and just now one of your portfolio 554 00:28:40,560 --> 00:28:43,760 Speaker 2: company's case texts it's an AI legal assistant. It looks 555 00:28:43,800 --> 00:28:46,200 Speaker 2: like it's just been acquired by Thompson Reuters for a 556 00:28:46,240 --> 00:28:48,880 Speaker 2: cool sum of cash. Tell Us a little bit about 557 00:28:49,160 --> 00:28:50,880 Speaker 2: why now we saw this sort of exit. 558 00:28:52,240 --> 00:28:54,640 Speaker 13: Yeah, I mean, it's really exciting to have sort of 559 00:28:54,680 --> 00:28:58,120 Speaker 13: their first and largest our cash exit in this recent 560 00:28:58,680 --> 00:29:02,200 Speaker 13: wave of AI, and it's been really exciting. I mean, 561 00:29:02,320 --> 00:29:04,600 Speaker 13: kse Tex has been a company at the forefront of 562 00:29:04,640 --> 00:29:07,640 Speaker 13: AI since we invested about six years ago, and was 563 00:29:07,680 --> 00:29:11,000 Speaker 13: working heavily on it even before that. And they had 564 00:29:11,040 --> 00:29:15,160 Speaker 13: developed some really incredible technology even prior to GPT four 565 00:29:15,720 --> 00:29:19,400 Speaker 13: involving parallel search technology that earned them a customer base 566 00:29:19,400 --> 00:29:22,200 Speaker 13: of over ten thousand people. So because of that, they 567 00:29:22,200 --> 00:29:25,080 Speaker 13: were invited to be in the sandbox very early on 568 00:29:25,160 --> 00:29:28,200 Speaker 13: GPT four with open Ai, and they launched this new 569 00:29:28,200 --> 00:29:32,040 Speaker 13: product called co Council in March and within forty five 570 00:29:32,120 --> 00:29:35,800 Speaker 13: days they added another thousand plus customers using this new product. 571 00:29:35,840 --> 00:29:40,040 Speaker 13: So you know, we've seen we've seen AI come a 572 00:29:40,080 --> 00:29:42,800 Speaker 13: long way in a very short period of time. The 573 00:29:42,880 --> 00:29:46,800 Speaker 13: delta from GPT three point five to GPT four was 574 00:29:46,840 --> 00:29:47,800 Speaker 13: pretty incredible. 575 00:29:48,240 --> 00:29:51,360 Speaker 2: So case Text actually tried to pass. 576 00:29:51,160 --> 00:29:54,440 Speaker 13: The bar with GPT three point five and they scored 577 00:29:54,480 --> 00:29:57,000 Speaker 13: sort of a measly ten percent on the California state bar. 578 00:29:57,840 --> 00:29:58,920 Speaker 2: I took the bar years ago. 579 00:29:59,040 --> 00:30:01,320 Speaker 13: I'm a lawyer as well, and I probably could still 580 00:30:01,360 --> 00:30:03,160 Speaker 13: do ten percent, I hope. 581 00:30:03,240 --> 00:30:04,680 Speaker 1: And then when they. 582 00:30:04,720 --> 00:30:09,600 Speaker 13: Launched their new co council product using the fully featured 583 00:30:09,640 --> 00:30:13,840 Speaker 13: GPT four, they actually scored ninety four percent on the 584 00:30:13,840 --> 00:30:17,520 Speaker 13: California State Bar, which essentially means that this product could 585 00:30:17,560 --> 00:30:20,239 Speaker 13: stand in the shoes of a full legal associate in 586 00:30:20,280 --> 00:30:20,920 Speaker 13: many ways. 587 00:30:21,120 --> 00:30:24,120 Speaker 2: It was Chat GPT three point five and four that 588 00:30:24,200 --> 00:30:28,720 Speaker 2: got the whole world suddenly ignited and excited about artificial intelligence. 589 00:30:28,760 --> 00:30:30,880 Speaker 2: But you have been investing in it for a long time. 590 00:30:31,000 --> 00:30:33,440 Speaker 2: This is a company you're backed years ago and continue 591 00:30:33,480 --> 00:30:36,960 Speaker 2: to then see its trajectory. Will Are we in a 592 00:30:37,040 --> 00:30:40,200 Speaker 2: hype cycle or is it necessary that that had to 593 00:30:40,240 --> 00:30:43,719 Speaker 2: happen to get this sort of level of sudden application 594 00:30:43,960 --> 00:30:46,680 Speaker 2: of a case text for example right now. 595 00:30:46,920 --> 00:30:49,360 Speaker 13: I don't think we're necessarily in a hype cycle. I 596 00:30:49,400 --> 00:30:53,000 Speaker 13: think the technology just came up the curve to that 597 00:30:53,120 --> 00:30:56,760 Speaker 13: last increment very very quickly. So we've been investing in AI, 598 00:30:57,000 --> 00:30:59,560 Speaker 13: you know, since I've been an a venture at Morgenthaler. 599 00:30:59,640 --> 00:31:03,000 Speaker 13: We were the first institutional investors in Siri, and just 600 00:31:03,040 --> 00:31:06,760 Speaker 13: to see the evolution of how good AI has become 601 00:31:06,880 --> 00:31:09,440 Speaker 13: since then, I remember, you know, product testing Siri in 602 00:31:09,480 --> 00:31:11,920 Speaker 13: the early days, and it could understand you know, very 603 00:31:11,920 --> 00:31:16,040 Speaker 13: little initially. And then we came into figure eight, which 604 00:31:16,080 --> 00:31:18,720 Speaker 13: was really the picks and shovels for AI, and that 605 00:31:18,800 --> 00:31:22,120 Speaker 13: company was acquired by a public company called Appen, and 606 00:31:22,160 --> 00:31:24,760 Speaker 13: then we did Luminar, and Luminar, you know, has AI 607 00:31:24,840 --> 00:31:28,200 Speaker 13: at its core. They're an autonomous driving company and they 608 00:31:28,600 --> 00:31:31,400 Speaker 13: reinvented the entire light our stack and the AI software 609 00:31:31,440 --> 00:31:34,560 Speaker 13: to go with it. Right, So I think AI just 610 00:31:34,880 --> 00:31:37,920 Speaker 13: suddenly had a leap forward in its capabilities. As we 611 00:31:37,960 --> 00:31:40,800 Speaker 13: saw from the leap forward from GPT three five to four. 612 00:31:40,800 --> 00:31:43,760 Speaker 2: How many public companies, so how many ultimately big companies 613 00:31:44,120 --> 00:31:47,520 Speaker 2: A desperate to stop buying in this space was Dojo 614 00:31:47,600 --> 00:31:49,240 Speaker 2: is the only one out there who was wanting to 615 00:31:49,280 --> 00:31:50,040 Speaker 2: buy case text. 616 00:31:51,520 --> 00:31:55,280 Speaker 13: You know, I can't comment exactly on the on the 617 00:31:55,360 --> 00:31:59,960 Speaker 13: other possible acquirers. I can say that the company has 618 00:32:00,280 --> 00:32:02,520 Speaker 13: you know, more than their fair share of venture term 619 00:32:02,520 --> 00:32:04,520 Speaker 13: sheets they could have chosen from if they wanted to 620 00:32:04,520 --> 00:32:08,360 Speaker 13: go ahead and take an equity round. And then you know, 621 00:32:08,400 --> 00:32:12,160 Speaker 13: Thompson Reuters was just the logical acquisition partner for this company. 622 00:32:13,120 --> 00:32:17,680 Speaker 2: Let's talk therefore about the venture equity that still wants 623 00:32:17,720 --> 00:32:20,000 Speaker 2: to get into AI, and more broadly, in the space, 624 00:32:20,080 --> 00:32:24,200 Speaker 2: what does it look like, what are terms? What devaluations appear? 625 00:32:24,280 --> 00:32:26,680 Speaker 2: To you as someone who's looked at AI before, it 626 00:32:26,800 --> 00:32:28,760 Speaker 2: kind of got frothy. 627 00:32:28,920 --> 00:32:32,760 Speaker 13: Yeah, so overall, you know, valuations are down, but for 628 00:32:32,840 --> 00:32:35,200 Speaker 13: AI right so AI is I would say, the most 629 00:32:35,200 --> 00:32:38,880 Speaker 13: heavily invested, you know sector right now. However, I think 630 00:32:38,960 --> 00:32:41,840 Speaker 13: it's really hard to imagine an AI company starting from 631 00:32:42,000 --> 00:32:45,400 Speaker 13: scratch right now and becoming a big entity. 632 00:32:45,440 --> 00:32:46,600 Speaker 2: I mean what we like to see. 633 00:32:46,640 --> 00:32:49,400 Speaker 13: I actually love sort of Series B companies, right so, 634 00:32:49,560 --> 00:32:53,160 Speaker 13: companies that are late A or early Series B. And 635 00:32:53,200 --> 00:32:55,640 Speaker 13: what that means is they have some semblance of product 636 00:32:55,640 --> 00:32:58,800 Speaker 13: market fit. They're actually solving a real problem, and then 637 00:32:58,840 --> 00:33:03,560 Speaker 13: AI can come in and really supercharge that initiative. And so, 638 00:33:04,160 --> 00:33:08,120 Speaker 13: you know, for me, I think the bigger opportunities leveraging 639 00:33:08,160 --> 00:33:11,600 Speaker 13: a technology like AI are companies that have a unique 640 00:33:11,640 --> 00:33:14,800 Speaker 13: data set that already have a client base that they 641 00:33:14,880 --> 00:33:18,040 Speaker 13: understand the use cases for quite well, and now they 642 00:33:18,040 --> 00:33:20,360 Speaker 13: can come in and solve the problem in a much 643 00:33:20,800 --> 00:33:24,320 Speaker 13: more robust and interesting way. So we're focusing a lot 644 00:33:24,360 --> 00:33:27,000 Speaker 13: on that sector and we're seeing it in our own 645 00:33:27,080 --> 00:33:31,560 Speaker 13: portfolio even how this new technology is really helping to 646 00:33:31,680 --> 00:33:36,280 Speaker 13: I guess, supercharge our current customers, including companies like Skyflow 647 00:33:36,440 --> 00:33:39,640 Speaker 13: and offer fit in Connecticut that are all really benefiting 648 00:33:39,720 --> 00:33:40,960 Speaker 13: from this new technology. 649 00:33:41,240 --> 00:33:43,080 Speaker 2: Now, I'm not going to say which of your portfolio 650 00:33:43,160 --> 00:33:47,640 Speaker 2: companies aren't managing to cross that AI void, but all 651 00:33:47,680 --> 00:33:49,920 Speaker 2: of their companies out there that are going to ultimately 652 00:33:49,960 --> 00:33:53,680 Speaker 2: become obsolete. How are vcs in particular trying to ensure 653 00:33:53,720 --> 00:34:00,120 Speaker 2: that they're founders, their companies already backed, can pivot when necessary. 654 00:34:00,280 --> 00:34:01,880 Speaker 13: I think you just they need to stay ahead of 655 00:34:01,880 --> 00:34:03,680 Speaker 13: the curve. And so anyone who kind of got the 656 00:34:03,680 --> 00:34:06,000 Speaker 13: press release on open Ai and now thought they should 657 00:34:06,040 --> 00:34:10,000 Speaker 13: do something or our GPT four is behind right, And 658 00:34:10,080 --> 00:34:12,719 Speaker 13: so you know, the companies and the good companies that 659 00:34:12,760 --> 00:34:15,239 Speaker 13: are out there have already been thinking about this and 660 00:34:15,320 --> 00:34:20,239 Speaker 13: been incorporating the benefits and the and the and the 661 00:34:20,280 --> 00:34:23,640 Speaker 13: advantages of you know, GPT four and have been way 662 00:34:23,640 --> 00:34:25,600 Speaker 13: ahead of it. And we were just lucky to be 663 00:34:25,640 --> 00:34:27,600 Speaker 13: sort of part of that, you know, having seen kind 664 00:34:27,600 --> 00:34:29,880 Speaker 13: of what was coming they were going to release with 665 00:34:29,960 --> 00:34:30,600 Speaker 13: GPT four. 666 00:34:31,440 --> 00:34:35,799 Speaker 2: What about venture more broadly, like, obviously you've had the 667 00:34:35,800 --> 00:34:39,000 Speaker 2: benefit of the odd exit just now, but IPO still 668 00:34:39,040 --> 00:34:41,800 Speaker 2: remains pretty much shot for many people. People are feeling 669 00:34:41,800 --> 00:34:45,160 Speaker 2: that there's a regulatory hurdle of big companies buying smaller ones. 670 00:34:45,200 --> 00:34:48,319 Speaker 2: At the moment, how does your industry look? How is 671 00:34:48,360 --> 00:34:49,440 Speaker 2: it thriving or not? 672 00:34:51,719 --> 00:34:54,640 Speaker 13: I have never been more excited about our industry since 673 00:34:54,680 --> 00:34:58,319 Speaker 13: I came into venture really in O eight. I entered 674 00:34:58,320 --> 00:35:01,120 Speaker 13: a venture right when Lehman crashed, which I thought was 675 00:35:01,280 --> 00:35:04,120 Speaker 13: probably the best time I possibly could have entered adventure. 676 00:35:04,680 --> 00:35:07,880 Speaker 13: I think these kind of dislocations bring an incredible amount 677 00:35:07,880 --> 00:35:11,080 Speaker 13: of opportunity and that come I mean, I'm a fairly 678 00:35:11,160 --> 00:35:16,720 Speaker 13: contrarian investor, I believe. But we are seeing early stage 679 00:35:16,760 --> 00:35:20,720 Speaker 13: funding down probably about forty to fifty percent. We're seeing 680 00:35:20,840 --> 00:35:24,919 Speaker 13: late stage funding down even more, and probably the most 681 00:35:24,920 --> 00:35:28,280 Speaker 13: exciting thing for me is we're seeing the Series b's, 682 00:35:28,680 --> 00:35:31,520 Speaker 13: which are always the hardest round for a company to raise, 683 00:35:31,960 --> 00:35:34,759 Speaker 13: taking longer than they have in twelve years to get 684 00:35:34,760 --> 00:35:37,920 Speaker 13: their funding. So the time span from like a Series 685 00:35:37,960 --> 00:35:41,880 Speaker 13: A to a Series B investing round is about thirty 686 00:35:41,920 --> 00:35:44,800 Speaker 13: one months right now, which is longer than you know, 687 00:35:45,040 --> 00:35:48,359 Speaker 13: really I can remember on record. And on top of that, 688 00:35:49,160 --> 00:35:51,760 Speaker 13: when you look really under the covers of what's happening. 689 00:35:52,280 --> 00:35:55,640 Speaker 13: About forty percent of the Series A and B rounds 690 00:35:55,680 --> 00:35:58,760 Speaker 13: happening that are happening right now after taking thirty one months, 691 00:35:59,120 --> 00:36:02,279 Speaker 13: are actually being led by insiders, so people that are 692 00:36:02,360 --> 00:36:06,880 Speaker 13: already investors in the company that are trying to support 693 00:36:06,960 --> 00:36:09,600 Speaker 13: the valuation that they currently have, which in many cases 694 00:36:09,680 --> 00:36:12,760 Speaker 13: is too high. And so for us, what that means, 695 00:36:12,880 --> 00:36:16,040 Speaker 13: you know, we're because of where we invest, we have 696 00:36:16,040 --> 00:36:17,560 Speaker 13: a lot of time to look at the companies and 697 00:36:17,600 --> 00:36:19,640 Speaker 13: to make our choices, which is ideal. 698 00:36:20,680 --> 00:36:23,120 Speaker 2: What about coming in as a new investor, So if 699 00:36:23,160 --> 00:36:27,200 Speaker 2: you're not just as some of many just being the 700 00:36:27,239 --> 00:36:30,440 Speaker 2: insider that backs the company that's already in your portfolio, 701 00:36:30,480 --> 00:36:33,080 Speaker 2: but wanting to come in and write checks to new companies, 702 00:36:33,520 --> 00:36:35,880 Speaker 2: what are the terms look like? How much control do 703 00:36:35,960 --> 00:36:38,480 Speaker 2: you have when you're that person looking from the outside 704 00:36:38,520 --> 00:36:38,920 Speaker 2: to get in. 705 00:36:39,960 --> 00:36:42,840 Speaker 13: I think right now, when you're it's definitely a buyer's market. 706 00:36:43,000 --> 00:36:45,640 Speaker 13: Right when you're looking at the outside to get in, 707 00:36:46,040 --> 00:36:49,000 Speaker 13: you have more time for diligence because of just it's 708 00:36:49,080 --> 00:36:51,799 Speaker 13: the time that it's taking and you can pretty much 709 00:36:51,840 --> 00:36:54,680 Speaker 13: set the terms. We are beginning to see something we 710 00:36:54,719 --> 00:36:57,120 Speaker 13: haven't seen in a long time, which is down rounds. 711 00:36:57,280 --> 00:37:00,000 Speaker 13: Right when I did a lending club and the depth 712 00:37:00,040 --> 00:37:03,000 Speaker 13: to the credit crisis in Q one of nine, it 713 00:37:03,040 --> 00:37:06,120 Speaker 13: was actually a down round which which ended up quite good. 714 00:37:06,280 --> 00:37:09,480 Speaker 13: It was the largest US tech IPO of twenty fourteen. Right, 715 00:37:09,880 --> 00:37:12,960 Speaker 13: but in that climate that most of those companies that 716 00:37:13,000 --> 00:37:16,920 Speaker 13: were being funded were actually down rounds. We're seeing companies 717 00:37:16,960 --> 00:37:20,760 Speaker 13: being recapitalized, so in other words, the new investor coming 718 00:37:20,760 --> 00:37:23,800 Speaker 13: in and really cleaning up the cap table and funding 719 00:37:23,840 --> 00:37:27,080 Speaker 13: that company for the go forward. So you know, it's 720 00:37:27,080 --> 00:37:30,560 Speaker 13: a tough market when companies are raising rounds. 721 00:37:30,600 --> 00:37:33,839 Speaker 2: Right now, I would say camas Bench's co founder, general 722 00:37:33,880 --> 00:37:35,880 Speaker 2: partner of Rebecca Lyn and talk about the tough but 723 00:37:36,000 --> 00:37:39,880 Speaker 2: also the opportunities and indeed, congratulations on one of the 724 00:37:39,920 --> 00:37:42,680 Speaker 2: exits just now, thank you for joining us. Meanwhile, coming 725 00:37:42,760 --> 00:37:45,040 Speaker 2: up a more tech earnings, we're going back to the 726 00:37:45,040 --> 00:37:47,680 Speaker 2: public market. We're getting into meta results that's coming after 727 00:37:47,719 --> 00:37:50,400 Speaker 2: the closing boll more, what to expect from Mark Zuckerberg's 728 00:37:50,400 --> 00:37:53,719 Speaker 2: Empire mid cost cutting efforts, and of course the lords 729 00:37:53,800 --> 00:38:01,239 Speaker 2: threads from New York. This is really big technology. 730 00:38:07,280 --> 00:38:10,560 Speaker 7: We are making sure we develop and deploy AI technology 731 00:38:10,640 --> 00:38:15,960 Speaker 7: responsibly so that everyone can benefit. Last week, we signed 732 00:38:16,000 --> 00:38:19,279 Speaker 7: on to joint commitments with other leading AI companies at 733 00:38:19,320 --> 00:38:22,440 Speaker 7: the White House, building on the principles that have guided 734 00:38:22,480 --> 00:38:26,239 Speaker 7: our work for many years. To take advantage of the 735 00:38:26,320 --> 00:38:29,920 Speaker 7: AI opportunities ahead, we've been sharpening our focus as a company, 736 00:38:30,640 --> 00:38:34,600 Speaker 7: investing responsibly with great discipline, and finding areas where we 737 00:38:34,600 --> 00:38:36,400 Speaker 7: can operate more cost effectively. 738 00:38:37,360 --> 00:38:39,759 Speaker 2: Alfa bet CEOs no picture there on the company's earning 739 00:38:39,800 --> 00:38:44,280 Speaker 2: school discussing AI, the responsibility there from not only driving 740 00:38:44,320 --> 00:38:48,640 Speaker 2: revenue but ultimately building it ethically. There's another company that's 741 00:38:48,640 --> 00:38:50,960 Speaker 2: about to go viral, and it's Meta out with its 742 00:38:51,000 --> 00:38:53,279 Speaker 2: second quarter results after the market close, and expert in 743 00:38:53,680 --> 00:38:56,719 Speaker 2: covers that social media more broadly for us. And I 744 00:38:56,719 --> 00:39:00,000 Speaker 2: remember last time on earnings, you're really showing how much 745 00:39:00,120 --> 00:39:03,239 Speaker 2: time basically Mark sokobad to talk about ALI rather than 746 00:39:03,280 --> 00:39:05,080 Speaker 2: the metaverse. Are we thinking the same thing again? 747 00:39:05,920 --> 00:39:06,239 Speaker 1: That's right. 748 00:39:06,320 --> 00:39:08,880 Speaker 14: It was six minutes last time on AI height and 749 00:39:08,960 --> 00:39:11,160 Speaker 14: thirty seconds on the metaverse. 750 00:39:11,200 --> 00:39:12,040 Speaker 2: I expect that. 751 00:39:12,080 --> 00:39:14,120 Speaker 14: Might be the same. But what I think the street 752 00:39:14,160 --> 00:39:16,600 Speaker 14: will actually be paying a lot of attention to is 753 00:39:16,600 --> 00:39:19,040 Speaker 14: the health of the core business, the social media businesses. 754 00:39:19,280 --> 00:39:22,520 Speaker 14: Maybe not the bright shiny objects of AI, the metaverse, 755 00:39:22,640 --> 00:39:23,920 Speaker 14: or perhaps even threads. 756 00:39:24,160 --> 00:39:27,239 Speaker 2: But how is Instagram? How is Facebook doing? 757 00:39:27,520 --> 00:39:30,800 Speaker 14: And can this company actually come back to revenue growth? 758 00:39:30,960 --> 00:39:34,440 Speaker 14: You'll recall that last year Meta actually posted its first 759 00:39:34,520 --> 00:39:38,759 Speaker 14: ever year of revenue declines. Growth was around two percent 760 00:39:38,840 --> 00:39:41,560 Speaker 14: last quarter, an let's expect about eight percent of revenue 761 00:39:41,560 --> 00:39:44,399 Speaker 14: growth this quarter. When does that change? When did those 762 00:39:44,400 --> 00:39:46,720 Speaker 14: double digits come back? I think that's what the stock 763 00:39:46,800 --> 00:39:49,480 Speaker 14: will move on, though I'm sure the executives would love 764 00:39:49,520 --> 00:39:52,920 Speaker 14: you to focus on the big ticket spending items like 765 00:39:53,000 --> 00:39:56,160 Speaker 14: AIAI infrastructure and the excitement around threads. 766 00:39:56,200 --> 00:39:58,040 Speaker 2: I mean it feels like pretty optimacy. I'm looking at 767 00:39:58,160 --> 00:40:00,359 Speaker 2: the am function on the Bloomberg right now, and they're 768 00:40:00,360 --> 00:40:03,080 Speaker 2: seeing double digits and revenue growth back so their fiscal 769 00:40:03,160 --> 00:40:05,200 Speaker 2: third quarters, so we only have to wait one more. 770 00:40:05,320 --> 00:40:08,920 Speaker 2: But to that point, how much are we seeing perhaps 771 00:40:08,960 --> 00:40:11,239 Speaker 2: talk of an advertising balsom at the moment. I mean, 772 00:40:11,280 --> 00:40:14,560 Speaker 2: Snap was ugly, but Alphabet showing much more resilience when 773 00:40:14,560 --> 00:40:16,520 Speaker 2: it comes to people wanting to spend on search. 774 00:40:17,160 --> 00:40:19,320 Speaker 14: And I think Meta will probably fall somewhere in the middle. 775 00:40:19,400 --> 00:40:23,520 Speaker 14: So Snap was ugly and they typically do brand ads 776 00:40:23,600 --> 00:40:26,040 Speaker 14: where brands are talking about kind of their brand name, 777 00:40:26,080 --> 00:40:30,040 Speaker 14: their upper funnel ads. Search ads where Alphabet is really strong. 778 00:40:30,239 --> 00:40:32,879 Speaker 14: Those are ads that are really high intent. A user 779 00:40:32,920 --> 00:40:35,919 Speaker 14: goes to search for something, then they buy something. There's 780 00:40:35,960 --> 00:40:38,360 Speaker 14: a direct impact on the marketer's bottom line. 781 00:40:38,480 --> 00:40:39,640 Speaker 2: Meta kind of falls. 782 00:40:39,360 --> 00:40:41,000 Speaker 14: Somewhere in the middle and has a bit of both, 783 00:40:41,040 --> 00:40:42,960 Speaker 14: so that's where we kind of expect. 784 00:40:42,640 --> 00:40:43,360 Speaker 2: It to fall. 785 00:40:43,760 --> 00:40:46,600 Speaker 14: Stabilization has kind of been the name of the game 786 00:40:46,840 --> 00:40:51,360 Speaker 14: across a lot of the digital ad industry. Meta tends 787 00:40:51,440 --> 00:40:54,560 Speaker 14: to move a little bit closer with Alphabet because they 788 00:40:54,560 --> 00:40:57,680 Speaker 14: are the two kind of duopolistic giants and digital ads. 789 00:40:57,719 --> 00:41:01,640 Speaker 14: So if there is stabilization, and if that if we 790 00:41:01,680 --> 00:41:05,400 Speaker 14: see any kind of guidance like analysts are expecting toward 791 00:41:05,400 --> 00:41:07,960 Speaker 14: double digit growth into the third quarter, that will be 792 00:41:08,040 --> 00:41:11,280 Speaker 14: a really exciting move. But if we get more bearish 793 00:41:11,440 --> 00:41:15,399 Speaker 14: signals from Meta's executive team, perhaps on the call, then 794 00:41:15,480 --> 00:41:18,480 Speaker 14: investors could have a little bit of frustration with some 795 00:41:18,520 --> 00:41:20,799 Speaker 14: of the more fun things that Meta has been talking 796 00:41:20,800 --> 00:41:21,680 Speaker 14: about lately. 797 00:41:21,600 --> 00:41:24,160 Speaker 2: Like Lama too, whether that's ever going to drive revenue 798 00:41:24,239 --> 00:41:26,759 Speaker 2: certainly not, and well threads when they start to turn 799 00:41:26,800 --> 00:41:30,040 Speaker 2: on any advertising around that Alex Barinka, brilliant as ever. 800 00:41:30,200 --> 00:41:32,920 Speaker 2: Thank you ahead of those all important earnings. And while 801 00:41:32,960 --> 00:41:35,000 Speaker 2: that does it so this edition of Bloomberg Technology, do 802 00:41:35,080 --> 00:41:37,120 Speaker 2: not forget to check out our podcasts. Do not forget 803 00:41:37,200 --> 00:41:39,439 Speaker 2: to tune in when the earnings come at four pm. 804 00:41:39,480 --> 00:41:41,760 Speaker 2: We'll be there with the meta numbers. But of course 805 00:41:41,800 --> 00:41:44,240 Speaker 2: go for our podcast in the interim on Apple, Spotify, 806 00:41:44,440 --> 00:41:48,279 Speaker 2: and iHeart from New York. This is Bloomberg Technology.