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Speaker 1: From Mahard where Innovation, Money and power Collie in Silicon

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Speaker 1: Vallet NBN.

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

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Speaker 3: I'm Caroline heih and a Bloomberg's Wilde Quarters in New York,

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Speaker 3: and I'm Ed Ludlow in San Francisco.

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Speaker 4: This is Bloomberg Technology coming up.

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Speaker 3: SpaceX targets well one hundred and seventy five billion dollar

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Speaker 3: valuation or more as the most valuable US startup, discussed

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Speaker 3: as a tender offer of its insiders' shares.

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Speaker 5: We'll bring you the details.

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Speaker 6: An AMD takes on chip rival when video as the

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Speaker 6: company introduces its long awaited line of AI accelerators. We'll

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Speaker 6: discuss and I'll bring you my conversation with AMD CEO

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Speaker 6: Lisa sou LUs.

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Speaker 3: After twenty four hours street of talks on AI rules,

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Speaker 3: the EU negotiators remain divided on a plan to adopt

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Speaker 3: the most comprehensive regulation for the technology in the Western world.

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Speaker 3: We're bringing the latest on the situation out of Brussels,

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Speaker 3: but first let scale up to speed with the situation

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Speaker 3: on these markets. Because AI exuberance is back. We'll dig

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Speaker 3: into the whys why Alphabet's rising on the back of

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Speaker 3: the Gemini launched Why AMD of course is rising on

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Speaker 3: the back of its AIDA and we see the Nasdaq

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Speaker 3: up one and a quarter of a percent, even though

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Speaker 3: we see bonds actually sell off in yields pushing up

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Speaker 3: just about two basis points.

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Speaker 5: Have we baked in.

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Speaker 3: Too much of a douvishness around the world when it

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Speaker 3: comes to central banks the BOJ perhaps realigning our viewpoints

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Speaker 3: on that, and indeed that's why we're seeing the dollar

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Speaker 3: falling versus the Japanese YenS. Maybe the BOJ isn't going

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Speaker 3: to be as dovish has have been anticipated. Moving on,

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Speaker 3: what's happening in the world of the US dollar vers

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Speaker 3: there's some other key currencies or assets. I'm looking at

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Speaker 3: what's happening in the world of crypto and well Bitcoin

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Speaker 3: overall we have seen managing to above that forty two

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Speaker 3: thousand out forty three thousand, six hundred and forty eight

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Speaker 3: versus a US dollar. We're down by some four tens percent.

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Speaker 3: No big shakes in the world of crypto, even though,

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Speaker 3: of course we're still reading from the Jamie Diamond comments

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Speaker 3: of yesterday ed where he said if he had the control,

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Speaker 3: he'd shut it down, But you've got some big thoughts

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Speaker 3: on some privately held companies.

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Speaker 6: Yeah, we don't often start with a private market piece

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Speaker 6: of news, but this is a big piece of news.

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Speaker 6: SpaceX doing another tender offer, according to our sources. I

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Speaker 6: reported this last night with Jillian Tan and Katie Ruth

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Speaker 6: based on the volume of shares that are currently on

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Speaker 6: the table, and these are employee shares that are being

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Speaker 6: sold to outside investors. It's not SpaceX raising money or

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Speaker 6: issuing new equity. The valuation jumps from one hundred and

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Speaker 6: fifty billion to one hundred and seventy five billion. The

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Speaker 6: trajectory of this company is astonishing. I think we have

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Speaker 6: a chart that basically shows how incrementally but rapid the

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Speaker 6: valuation has jumped from twenty twenty to current right. We

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Speaker 6: report on this so frequently. A big rationale, of course,

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Speaker 6: behind the tender offer is to give long serving or

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Speaker 6: suffering staff a chance to make some money for their work.

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Speaker 6: I want to get some more of the details. Bring

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Speaker 6: in Bloomboth, Katie Ruth. Katie, you and I have been

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Speaker 6: reporting on so many of these rounds, both primary and

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Speaker 6: secondary secondary in this case for a while. What are

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Speaker 6: the numbers behind this latest tender.

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Speaker 1: Yes, so we're hearing they expect to price this tender

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Speaker 1: at ninety five dollars a share, which would value the

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Speaker 1: company at approximately one hundred and seventy five billion, making

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Speaker 1: it the largest private company in the US. This is

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Speaker 1: up from one hundred and fifty billion earlier this year

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Speaker 1: that we reported, and at the very beginning of the

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Speaker 1: year it was one hundred and thirty seven billions. So

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Speaker 1: it is defying the odds, defining the market at a

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Speaker 1: time when so many companies there trouble, having trouble maintaining

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Speaker 1: their unicorn status. This is the center cores that keeps growing.

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Speaker 3: It is well said, and when you put it is

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Speaker 3: a v the rest of the public markets. Well, it's

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Speaker 3: on the same sort of market capitalization as a Nike,

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Speaker 3: for example.

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Speaker 5: Be get them Boeing.

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Speaker 3: I'm interested is to ultimately what investors want in on

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Speaker 3: when it comes to SpaceX, is it just its domination

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Speaker 3: within the space in the field? Is it also still

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Speaker 3: wanting a little bit of Well, Mass is a founder,

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Speaker 3: even though he of course has spoked concerns with all

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Speaker 3: the publicly traded companies of his because of his use

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Speaker 3: is X for example.

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Speaker 1: Sure, he's absolutely controversial, but my understanding is that investors

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Speaker 1: are excited about starlink. That is the internet, high speed

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Speaker 1: Internet that can be available and normally hard to reach places.

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Speaker 1: There are investors that have spoken to me about with

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Speaker 1: such enthusiasm for Starlink that they're dreaming that someday it

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Speaker 1: will be a trillion dollar company. Of course, time we'll see,

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Speaker 1: you know, if it really becomes that, but that is

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Speaker 1: what such much of the hype is around SpaceX. We've

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Speaker 1: also reported that the company eventually plans to spin off

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Speaker 1: Starlink and do a separate IPO with Starlink, and so

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Speaker 1: investors are trying to get in on that.

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Speaker 3: We keep our eyes on all of these private market valuations, Katie, alongside,

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Speaker 3: of course Gina Internet.

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Speaker 5: It was brilliant scop that came.

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Speaker 3: Out yesterday, and I know we'll still have all eyes

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Speaker 3: on ultimately the business model of SpaceX and indeed a

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Speaker 3: conversational space more broadly, because there's means some great importing

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Speaker 3: coming time and time again from Lauren Grush at Bloomberg,

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Speaker 3: with really the focus being on how SpaceX could just

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Speaker 3: eat everyone's lunch when it comes to the ability on

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Speaker 3: an economic basis to get satellites.

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Speaker 5: And other options.

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Speaker 3: Into low orbit. Of how are we seeing them just

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Speaker 3: make strides at the moment, Lauren.

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Speaker 7: Well, I think the open question is what's going to

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Speaker 7: happen when their really ambitious, colossal Starship rocket comes online,

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Speaker 7: because it can carry more capacity to space than pretty

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Speaker 7: much anyone has the capability to do right now, and

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Speaker 7: if you're looking at the current launch market, it's a

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Speaker 7: capacity constrained market. Really the only option for satellite operators

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Speaker 7: is SpaceX's other workhorse rocket, the Falcon nine rocket, and

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Speaker 7: just because other rockets have come offline in recent years

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Speaker 7: and others that are trying to be developed right now

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Speaker 7: have suffered from delays, so there really is only an

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Speaker 7: option for satellite operators, and so to compete with the

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Speaker 7: Falcon nine, other companies have pivoted trying to build larger rockets.

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Speaker 7: But it's just an open question of what's going to

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Speaker 7: happen when Starship starts flying because it has a lot

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Speaker 7: of promise, that's a very low price tag and very

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Speaker 7: high flight rates, So it remains to be seen how

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Speaker 7: that's going to impact everyone.

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Speaker 6: I love your writing, you know, I love your writing,

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Speaker 6: but the way that you talk about Starship, the next

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Speaker 6: generation launch. Starship's audacious size and scale. It's not just

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Speaker 6: audacious because it's like bigger than anything that's gone before.

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Speaker 6: The technology is also kind of at the cutting edge.

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Speaker 6: Just explain what you outline in today's beautifully written piece, right.

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Speaker 7: So, there are a few things that make Starship kind

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Speaker 7: of this game chader.

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Speaker 5: It's supposed to be fully reusable.

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Speaker 7: You know, the Falcon nine is reusable, but only partially reusable.

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Speaker 7: But with Starship, they really want to bring back every single.

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Speaker 8: Piece of that rocket.

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Speaker 7: And then also there's promise of launching it, you know,

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Speaker 7: multiple times a day because it's reusable, and so that

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Speaker 7: would you know, Elon has kind of come up with

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Speaker 7: a price tag of roughly ten million dollars per flight. Obviously,

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Speaker 7: there's a lot of skepticism of whether that can actually

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Speaker 7: be achieved, and in order to achieve it, you really

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Speaker 7: have to get those ambitious flight rates that they're talking about.

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Speaker 7: So there's a lot of promise, a lot that's being advertised.

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Speaker 7: But if they can bring down the costs like they

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Speaker 7: are promising, then that could be a game changer for

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Speaker 7: satellite operators who maybe just want to get their satellite

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Speaker 7: to space, and so they'll pack it in with maybe

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Speaker 7: hundreds of other satellites on a Starship launch and you know,

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Speaker 7: have maybe space tugs take them where they need to

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Speaker 7: go in orbit.

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Speaker 4: What's next?

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Speaker 6: You know, you and I got really excited about Starship

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Speaker 6: Attempt number two came and went to SpaceX's mind, massive success.

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Speaker 4: That's what happens next?

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Speaker 7: Well, we they actually need to reach orbital speeds. So

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Speaker 7: while they did make quite a bit of progress on

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Speaker 7: their second flight, you know, they were able to show

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Speaker 7: stage separation, they were able to have all of their

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Speaker 7: engines on Starhip operates as they were supposed to that

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Speaker 7: didn't happen on the first flight. They really do need

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Speaker 7: to get Starships to those near orbital speeds to prove

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Speaker 7: that it can actually reach orbit. And then there's other

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Speaker 7: you know, there's a very long laundry list of items

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Speaker 7: that they need to achieve to make it the deep

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Speaker 7: space vehicle.

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Speaker 8: That they want it to be.

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Speaker 7: For instance, they'll have to show that they can fuel

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Speaker 7: up Starship in orbit so that it can reach deep

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Speaker 7: space destinations like the Moon. But once they reach those

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Speaker 7: orbital speeds, you know, then they could potentially start launching satellites,

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Speaker 7: you know, Starlink satellites and customer satellites. Like they've promised,

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Speaker 7: there's still quite other things to do to make it

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Speaker 7: fully reusable, right, They're going to have to show that

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Speaker 7: they can land it back on Earth in one piece

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Speaker 7: and then fuel it up and fly again. But just

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Speaker 7: getting to orbit will be a bit of a game

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Speaker 7: changer for Starship, and it'll see how it impacts the industry.

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Speaker 4: Bloomberg's Lauren Grush.

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Speaker 6: It's just been great to have a dedicated space Beat

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Speaker 6: reporter Caro, because it's such a massive industry now but

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Speaker 6: only a small heart of Elon Musk Inc. Which is

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Speaker 6: why I think we better talk about GROC. You've seen

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Speaker 6: the news that if you are an ex the company

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Speaker 6: or platform for me known as Twitter Premium subscriber, you

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Speaker 6: now should have access to GROC. I've been trying through

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Speaker 6: the app and like deleting, reinstalling. I don't have it yet.

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Speaker 6: But this is the awaited chatbot.

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Speaker 3: It is, and of course we know that it's meant

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Speaker 3: to be rebellious, humorous of course, and he's been beefing

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Speaker 3: up a team of well known prestigious scientists and academics

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Speaker 3: to be able to be building this basically take on

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Speaker 3: of open Ai, which he himself co founded.

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Speaker 5: Is notable that, of.

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Speaker 3: Course, it comes on the same week that the SEC

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Speaker 3: filing showed that maybe Xai is going to be raising money.

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Speaker 3: Elon himself said, look, we're not doing it in the

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Speaker 3: here and now, but we do know that ultimately they

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Speaker 3: want about a billion dollars because this stuff is expensive

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Speaker 3: if you want to be able to have.

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Speaker 6: But one billion doesn't even seem like that much money. No,

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Speaker 6: do what everyone else has raised.

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Speaker 4: I don't get it.

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Speaker 3: Well, it's going to be what twenty five percent of

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Speaker 3: ultimate xai is going to be held by outside investors.

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Speaker 3: So does that mean that the rest of the money

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Speaker 3: is going be coming from immediate revenue generation? Is it

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Speaker 3: more that Elon Musk himself is going to be financing

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Speaker 3: it and its growth going forward. I mean, initially open Ai,

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Speaker 3: of course was the non profit version, and then he

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Speaker 3: left it, and he's criticized since open ai has become

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Speaker 3: a profit focused business. But he himself, I'm assuming, is

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Speaker 3: going to be focusing on a profitable Xai and driving

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Speaker 3: subscriptions as x even I wonder if that's really going

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Speaker 3: to be the key aim here.

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Speaker 6: Yeah, what I'm hearing is there's like a big push

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Speaker 6: to high talent, and talent's expensive and computers expensive, so

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Speaker 6: they need some money.

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Speaker 3: Meanwhile, look as we talk about Elon Inc. We've got

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Speaker 3: to stick with more of Elon Musk and tending to

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Speaker 3: actually a bit of a more sensitive issue right now.

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Speaker 3: Ed because of course he is as a CEO, he's

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Speaker 3: the owner of X, and he's actually escalating his public

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Speaker 3: criticism of one Bob Iger, saying that the Disney CEO

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Speaker 3: quote should be fired immediately, saying that on the platform X.

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Speaker 3: Musk also referenced a new Mexico lawsuit alleging content from

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Speaker 3: Facebook and Instagram parent company Meta enabled check child sexual

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Speaker 3: abuse and trafficking, and asked why there was no advertise

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Speaker 3: a boycott on.

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Speaker 5: That set of apps.

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Speaker 3: The comments come after Disney along with other companies, of course,

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Speaker 3: Paul spending on X after Musk endorsed anti semitic remarks

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Speaker 3: on the site. From New York, from San Francisco, this

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Speaker 3: is Blue Meg Technology.

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Speaker 6: AMD is throwing its hat in the ring and going

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Speaker 6: after the AI market with new accelerated chips that says

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Speaker 6: it will be able to run AI software faster than

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Speaker 6: rival products, including in videos. I sat down with amdco

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Speaker 6: Lisa Sue at the launch event yesterday.

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Speaker 5: Have a listen.

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Speaker 9: If you look at training performance, we're very very competitive,

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Speaker 9: let's call it. You know, it's a toss up. When

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Speaker 9: you look at inferenced performance, we're one point four to

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Speaker 9: one point six times better.

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Speaker 5: And you know what that means is, you.

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Speaker 9: Know, if you're running these models, you can actually run

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Speaker 9: more models, or you can run larger models. You know,

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Speaker 9: with MI I three hundred and right now, you know

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Speaker 9: the key to AI is GPU compute. I mean that

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Speaker 9: is absolutely what everybody says, and so we're here to

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Speaker 9: provide lots of GPU compute.

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Speaker 6: You've had the confidence to dramatically alter your your forecast

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Speaker 6: for this market for AI accelerators. You're saying a total

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Speaker 6: addressable market of four hundred billion US dollars in twenty

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Speaker 6: twenty seven. In August, just in August, you said it

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Speaker 6: was one hundred and fifty billion.

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Speaker 4: What has changed.

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Speaker 5: Yeah, And you know, really, the way we.

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Speaker 9: Look at these things is we usually look at these

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Speaker 9: things on an annual basis, and so you know, when

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Speaker 9: we were, you know, doing our plan for twenty twenty

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Speaker 9: three and beyond last year. We thought that you know,

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Speaker 9: this year there would be about a thirty billion dollar

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Speaker 9: market and it would grow, you know, fifty percent compound

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Speaker 9: annual growth rates, so be about one hundred and fifty

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Speaker 9: billion in twenty twenty seven, which frankly was very, very large.

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Speaker 9: But what's changed is we can all see what's changed, right.

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Speaker 9: People need more compute. They're installing more. The numbers for

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Speaker 9: this year are probably closer to forty five billion. And

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Speaker 9: when we talk to customers, when I spend time with

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Speaker 9: our partners, and you know, what they.

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Speaker 8: Tell us is the technology.

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Speaker 9: Requires more compute. And so we now believe the total

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Speaker 9: market for this it's upwards of four hundred billion and

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Speaker 9: twenty twenty seven. It's huge. There's no one size fits all.

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Speaker 9: They're going to be multiple solutions. There are lots of

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Speaker 9: good solutions out there today, but we believe the AMD

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Speaker 9: capability is very significant and so we're excited about it.

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Speaker 6: It was interesting to see on stage how MI I

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Speaker 6: three hundred x manifests itself in the real world, but

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Speaker 6: you'd already guided us that it will likely be the

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Speaker 6: quickest AMD product to one billion dollars. There were sections

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Speaker 6: of the market in the street that said your forecast

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Speaker 6: of two billion dollars of sales for MI I three

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Speaker 6: hundred x in twenty four was conservative. If you're saying

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Speaker 6: that the total addressable market by twenty twenty seven is

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Speaker 6: now four hundred billion, then is that two billion forecasts

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Speaker 6: for next year specifically form I three hundred.

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Speaker 4: X conservative as the market thinks it is.

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Speaker 9: Well, I think you'll have to take a step back

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Speaker 9: and just look at how this technology is evolving. So,

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Speaker 9: you know, we did update in our last conference call

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Speaker 9: to an expectation about two billion in twenty twenty four

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Speaker 9: for our data center GPUs. It's a very early estimate,

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Speaker 9: I would say, you know, we have clear line of

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Speaker 9: sight to that. But you know, what people ask me

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Speaker 9: is like there's much more customer demand, definitely, and there's

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Speaker 9: also significantly more supply because we've had to prepare the

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Speaker 9: supply chain so that we're ready to ramp. So we'll

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Speaker 9: update as we go along. You know, we are, you know,

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Speaker 9: definitely on this path to rampm I three hundred the

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Speaker 9: fastest is anything's ever ramped at AMD, and you know,

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Speaker 9: I view this as a multi year opportunity for US.

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Speaker 6: Some breaking news and headlines crossing the Bloomberg terminal. Tesler

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Speaker 6: has how to reshuffle on its Dojo project. The former

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Speaker 6: Dojo chief Ganesh ven Kataramanan has left the company. Sources

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Speaker 6: have told me and Bloomberg's Mark German that he left

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Speaker 6: Tesla last month and has been replaced by Peter Bannon,

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Speaker 6: a former Apple executive. He's been at Tesla for around

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Speaker 6: seven years and now takes over leadership of the Dojo projects.

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Speaker 6: Venkataramanan's interesting. He's set up the AI hardware in Silicon

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Speaker 6: group at Tesla more than seven years ago. He is

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Speaker 6: the person behind the Dojo supercomputer, but also the D

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Speaker 6: one chip, the proprietary silicon that is powering the training

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Speaker 6: of video based data for autonomous driving software at Tesla.

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Speaker 6: An important change there at that company.

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Speaker 3: Carac important because it's about AI supercomputer future. The reason

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Speaker 3: many believe that Tesla's market capitalization is any where it

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Speaker 3: should be because.

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Speaker 5: Of its focus on AI.

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Speaker 3: And let's get back to the AI conversation for a moment,

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Speaker 3: because we just were listening to your great interview with

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Speaker 3: Lissa Sewer of AMD and we want to get onto

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Speaker 3: that a little bit. With Mande saying from Bloomberg Intelligence

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Speaker 3: and your read of ultimately the competitive space here and

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Speaker 3: an enormous market opportunity for her red billion. We're just

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Speaker 3: hearing from Lisa su and how are they going to

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Speaker 3: get enough of that market share?

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Speaker 10: Yeah, and I think one of the key distinctions that

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Speaker 10: Lisa who highlighted was they're focus on inferencing as opposed

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Speaker 10: to training. So we know right now all the GPU

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Speaker 10: capacity was being used for training these large sangreage models.

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Speaker 10: The fact that she's betting that inferencing will really pick

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Speaker 10: up from this point on is a sign that you're

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Speaker 10: probably going to see more copilots, more chat pots being deployed.

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Speaker 10: We haven't seen that yet. I mean, look at the

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Speaker 10: monthly active users for you know, GitHub Copilot or the

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Speaker 10: bard chatbot and all these things. So really it's a

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Speaker 10: big bed on inferencing taking off, but right now the

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Speaker 10: market is concentrated on training and that's where Nvidia still

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Speaker 10: has the upper hand.

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Speaker 3: And look, the exuberance is there of these things being

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Speaker 3: deployed and enterprise, we just look at Gemini and impact

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Speaker 3: that's having on alphabet shaf price today. Unfortunately, all this

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Speaker 3: breaking news, we can't dig into that a bit more

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Speaker 3: with you, but mandeps saying always on the money when

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Speaker 3: it comes to analysis from Bloomberg Intelligence.

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Speaker 6: Okay, time for talking tech and first Up. Montenegro plans

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Speaker 6: to extradite disgrace crypto tycoon Do Qwon to the US

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Speaker 6: to face criminal charges that according to a Wall Street

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Speaker 6: Journal report citing sources, the terraformer Labs co founder has

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Speaker 6: been jailed in the Balkan country since March and has

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Speaker 6: been denied committing fraud and has denied committing fraud following

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Speaker 6: the crash of that stable coin terror usd In, Apple's

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Speaker 6: senior executive overseeing touchscreen technology, health censors and the company's

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Speaker 6: face ID interface, is leaving the company, according to Bloomberg's sources.

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Speaker 6: And finally, November was another banner month for online marketplace Timu,

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Speaker 6: following this year's Black Friday sales sales and the Chinese

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Speaker 6: platform jumped twenty nine percent from a month ago to

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Speaker 6: a new record almost triple shanes observed sales in the country.

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Speaker 6: That all, according to Bloomberg Data, Caroline, We've got.

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Speaker 3: To stick on the resilience of the consumer right now,

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Speaker 3: particularly when it comes not just retail and fashion, her

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Speaker 3: makeup as well, and Glossy Aco k Leahy is with

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Speaker 3: us and peace are saying more than one year into

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Speaker 3: the job and a brand that isn't just perhaps makeup

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Speaker 3: as we might think it, it's fragrances too.

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Speaker 5: I'm seeing candles.

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Speaker 3: You're broadening, but you've also not just gone direct to

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Speaker 3: consumer anymore. You're now in Sephora one hundred million run

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Speaker 3: right for that first year.

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Speaker 5: Is that still where it stands?

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Speaker 11: Yeah, so it's been well. First of all, thank you

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Speaker 11: for having me. Nice to be here, and you know,

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Speaker 11: Glassie is such an incredible brand to your point, beyond

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Speaker 11: transcendent of just beauty for multi category makeup, skincare, fragrance, body,

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Speaker 11: merch and we really do connect with a multi generational

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Speaker 11: consumer that has a deep emotional connection and I think

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Speaker 11: is very very powerful.

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Speaker 5: And we've been.

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Speaker 11: Really building over the last two years the foundation and

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Speaker 11: scale to match build a business that really matches the

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Speaker 11: power of this brand. We have fifty one percent brand

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Speaker 11: awareness and yet less one percent market share, so incredible

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Speaker 11: opportunity to connect the size and scale of our business

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Speaker 11: with the size and scale of our brand, and we

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Speaker 11: are now seeing that come to life at record revenue

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Speaker 11: levels for Glossier and two years of consecutive growth, and

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Speaker 11: to your point, our launch at Sephora has been hugely

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Speaker 11: successful for us, on track to pass one hundred million

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Speaker 11: in sales, and yet still.

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Speaker 5: Is the smaller piece of our business.

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Speaker 11: We do more of our business in our owned channels,

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Speaker 11: so it really is a powerful omni channel strategy.

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Speaker 3: How do you think about that in terms of any

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Speaker 3: cannibalization whatsoever? Or really have you just seen sales wise

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Speaker 3: across the board no matter which particular point of Selle

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Speaker 3: you're doing it?

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Speaker 4: A yeah?

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Speaker 11: I mean our strategy at its heart is how do

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Speaker 11: we take this amazing brand that connects emotionally with consumers

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Speaker 11: through our products and our experiences and then bringing it

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Speaker 11: to life across an omnichannel strategy which is really about

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Speaker 11: bringing more Glossier to more people, and that is about

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Speaker 11: putting a customer at the center and celebrating to your point,

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Speaker 11: the ecosystem.

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Speaker 8: Or of where she can shop.

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Speaker 11: So for us, it was really leaning into DTC, which

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Speaker 11: is our founding. We are very much a pioneer of

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Speaker 11: bringing D two C beauty online in the D two

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Speaker 11: C model ten years ago, and d t C continues

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Speaker 11: to be an important part of our business, but the

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Speaker 11: customers evolved and the marketplace has evolved, and our strategy

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Speaker 11: needed to evolve and brands endure. But as strategies evolved,

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Speaker 11: our channel strategy could evolve. So we replatformed and redesigned

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Speaker 11: our site onto Shopify to continue to make sure we

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Speaker 11: could lead with direct to consumer and social commerce. We've

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Speaker 11: also opened up our own stores. We now have eleven stores,

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Speaker 11: ten in the US and one in London that our

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Speaker 11: experience centers for us, but also four wall profitable. And

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Speaker 11: then we launched in Sephora as kind of the third

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Speaker 11: leg of that stool, largely because our customers told us

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Speaker 11: they wanted us there. We were the number one brand

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Speaker 11: searched on sephora dot com before we joined them as

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Speaker 11: a strategic partner and now have been able to launch

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Speaker 11: into six hundred and fifty locations across North America and

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Speaker 11: seeing really exciting.

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Speaker 8: Success across categories.

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Speaker 11: Fragrance our perfume is the number one fragrance at Sephora,

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Speaker 11: but skincare and makeup, and really the power of this

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Speaker 11: brand from a really multi category standpoint.

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Speaker 3: And the power of the brand was already built through

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Speaker 3: social How do you navigate as a lead to some

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Speaker 3: of the politicalization within the social world as well.

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Speaker 5: We've got you have a presence on X. Are you

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Speaker 5: advertising on X?

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Speaker 3: Do you think about the way in which you allocate

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Speaker 3: your add dollars to social media companies that are getting

441
00:21:15,680 --> 00:21:18,440
Speaker 3: more and more concerns built around them.

442
00:21:18,880 --> 00:21:20,960
Speaker 11: We are, at our heart a community driven brand, and

443
00:21:20,960 --> 00:21:24,080
Speaker 11: I think Glassier really was a pioneer at bringing the

444
00:21:24,119 --> 00:21:29,640
Speaker 11: integration of social community, commerce online and really foray into

445
00:21:29,720 --> 00:21:32,119
Speaker 11: how we think about brands integrating socially. And we did

446
00:21:32,320 --> 00:21:35,399
Speaker 11: remain very connected to our community through social listening on

447
00:21:35,480 --> 00:21:39,200
Speaker 11: platforms like Instagram and on TikTok where we see incredible resonance,

448
00:21:39,240 --> 00:21:41,479
Speaker 11: and then we do things like Glassier Labs, or we

449
00:21:41,480 --> 00:21:43,840
Speaker 11: bring our customers in and have a lot of deep

450
00:21:43,880 --> 00:21:46,520
Speaker 11: connection with focus groups around how we can stay really

451
00:21:46,520 --> 00:21:49,959
Speaker 11: connected to our customer and their insights and be fueled

452
00:21:50,000 --> 00:21:53,720
Speaker 11: by our community and stay really customer focused and customer empathetic,

453
00:21:53,760 --> 00:21:55,679
Speaker 11: and how we're thinking about driving our brand go forward.

454
00:21:56,119 --> 00:21:58,680
Speaker 3: So you remain advertising on a platform like X or no,

455
00:21:59,520 --> 00:22:02,199
Speaker 3: we do not advertise on X. Okay, That's what I

456
00:22:02,200 --> 00:22:04,760
Speaker 3: think what's fascinating is to learn about the growth story

457
00:22:04,800 --> 00:22:07,320
Speaker 3: and indeed continuing to grow internationally as well.

458
00:22:07,400 --> 00:22:10,080
Speaker 5: Glossi A CEO Carle We wish we had more time.

459
00:22:18,280 --> 00:22:20,640
Speaker 3: Welcome back to Bluemog Technology and Caroline Hei in New.

460
00:22:20,640 --> 00:22:23,359
Speaker 6: York and I Meed Lovelow in San Francisco. There is

461
00:22:23,400 --> 00:22:26,120
Speaker 6: so much breaking news happening this morning that's driving markets.

462
00:22:26,160 --> 00:22:27,600
Speaker 4: AI is a big part of that.

463
00:22:27,960 --> 00:22:29,840
Speaker 6: One earning that we haven't discussed yet is C three

464
00:22:29,960 --> 00:22:33,040
Speaker 6: n AI missing on revenue estimates. The outlook not what

465
00:22:33,080 --> 00:22:36,000
Speaker 6: the market wanted to hear. That stockdown almost eleven percent

466
00:22:36,080 --> 00:22:39,479
Speaker 6: is a consequence we heard from AMD's Lisa Sue earlier

467
00:22:39,480 --> 00:22:41,919
Speaker 6: in the show about their new AI accelerated the I

468
00:22:41,920 --> 00:22:46,040
Speaker 6: three hundred x. What's so weird is Wednesday, during the event,

469
00:22:46,080 --> 00:22:47,320
Speaker 6: the stock was actually lower.

470
00:22:47,640 --> 00:22:49,320
Speaker 4: So is Nvidia today.

471
00:22:49,600 --> 00:22:52,560
Speaker 6: AMD up eight point four percent, and you know the

472
00:22:52,560 --> 00:22:55,320
Speaker 6: fighting talk is there. The bit the analysts like is

473
00:22:55,400 --> 00:22:59,919
Speaker 6: during that presentation, AMD told us who their customers are

474
00:23:00,080 --> 00:23:00,560
Speaker 6: going to use.

475
00:23:00,640 --> 00:23:01,439
Speaker 4: Three hundred x.

476
00:23:01,600 --> 00:23:03,480
Speaker 6: Meta is going to use three hundred x in its

477
00:23:03,520 --> 00:23:05,680
Speaker 6: data centers. That's what a lot of the cell side

478
00:23:05,760 --> 00:23:08,200
Speaker 6: is saying driving the stock today. But in Vidia also

479
00:23:08,320 --> 00:23:11,639
Speaker 6: higher because Caro AMD said this market is going to

480
00:23:11,640 --> 00:23:15,280
Speaker 6: absolutely balloon to four hundred billion dollars in twenty twenty seven,

481
00:23:15,480 --> 00:23:19,320
Speaker 6: just for AI accelerators. For context, the entire global semi

482
00:23:19,320 --> 00:23:22,280
Speaker 6: industry last year was five hundred billion. So AI is

483
00:23:22,320 --> 00:23:24,080
Speaker 6: going to be just as big in just a few

484
00:23:24,160 --> 00:23:24,640
Speaker 6: years time.

485
00:23:24,960 --> 00:23:27,040
Speaker 3: And mooy is AI going to disrupt the world of

486
00:23:27,080 --> 00:23:28,920
Speaker 3: work and the way in which we work.

487
00:23:29,040 --> 00:23:30,280
Speaker 5: Let's just talk about that for a moment.

488
00:23:30,280 --> 00:23:32,240
Speaker 3: In terms of whether you're doing hybrid work or not,

489
00:23:32,359 --> 00:23:36,399
Speaker 3: let's talk about workspaces provided IWG might think of we

490
00:23:36,440 --> 00:23:39,640
Speaker 3: work as one brand. While IWG has readiers, it has spaces,

491
00:23:39,720 --> 00:23:42,040
Speaker 3: and it's just been holding its invested ate this week

492
00:23:42,119 --> 00:23:45,359
Speaker 3: here in America, company announcing it plans to resume regular

493
00:23:45,400 --> 00:23:48,320
Speaker 3: dividends for more. We welcome to the show, IWG CEO

494
00:23:48,400 --> 00:23:50,920
Speaker 3: Mark Dixon. And what is it like at the moment

495
00:23:51,160 --> 00:23:54,400
Speaker 3: demand for hybrid work for those sorts of office spaces

496
00:23:54,400 --> 00:23:56,160
Speaker 3: that you have at the moment, Well, a few companies

497
00:23:56,200 --> 00:23:58,280
Speaker 3: kind of want their people back in person world.

498
00:23:58,320 --> 00:24:03,200
Speaker 12: Look for us, the demands very high, and that's because

499
00:24:03,240 --> 00:24:07,800
Speaker 12: we're providing workplaces not just in large cities in metropolis

500
00:24:07,920 --> 00:24:10,760
Speaker 12: is around the world, but in lots of smaller towns.

501
00:24:10,760 --> 00:24:14,080
Speaker 12: So about eighty five percent about growth these days, and

502
00:24:14,080 --> 00:24:16,520
Speaker 12: we're growing, for example, in the US at about a

503
00:24:16,600 --> 00:24:20,040
Speaker 12: fifty percent growth rate. It's all in the province, it's

504
00:24:20,040 --> 00:24:23,639
Speaker 12: all in rural locations. That's where workers are migrating to.

505
00:24:23,840 --> 00:24:25,679
Speaker 12: So the world of work is changing.

506
00:24:25,720 --> 00:24:31,399
Speaker 3: It's changing very rapidly as all investor base gravitating.

507
00:24:30,760 --> 00:24:31,800
Speaker 5: To America as well.

508
00:24:31,800 --> 00:24:34,000
Speaker 3: How do you see if you've got such a growth

509
00:24:34,080 --> 00:24:37,200
Speaker 3: rate here in America, what's that compared to in the UK,

510
00:24:37,280 --> 00:24:39,080
Speaker 3: where you come from, and what does the investor base

511
00:24:39,119 --> 00:24:39,919
Speaker 3: end up breaking.

512
00:24:39,680 --> 00:24:40,560
Speaker 8: Down at well.

513
00:24:41,320 --> 00:24:45,400
Speaker 12: US investors are about fifteen percent of our shareholder base

514
00:24:45,440 --> 00:24:48,320
Speaker 12: at the moment, but we expect it to grow much

515
00:24:48,320 --> 00:24:54,000
Speaker 12: more significantly. We've talked to investors this week about changing

516
00:24:54,000 --> 00:24:57,840
Speaker 12: to dollars that will happen in January, and we're also

517
00:24:58,160 --> 00:25:01,480
Speaker 12: reviewing a move to US game that we think will

518
00:25:01,720 --> 00:25:05,560
Speaker 12: clarify in numbers, and we're focusing much more on investor

519
00:25:05,640 --> 00:25:09,000
Speaker 12: days and road shows here in the US. Sixty five

520
00:25:09,040 --> 00:25:12,440
Speaker 12: percent of our business profits are coming from the United

521
00:25:12,480 --> 00:25:18,680
Speaker 12: States today and the most growth, So it makes sense.

522
00:25:18,480 --> 00:25:19,000
Speaker 4: To be here.

523
00:25:20,720 --> 00:25:23,720
Speaker 6: Mark, there is an AI story here and I know

524
00:25:24,080 --> 00:25:28,119
Speaker 6: because I've seen it in San Francisco in particular shared

525
00:25:28,160 --> 00:25:32,600
Speaker 6: office space and kind of hybrid working has seen lots

526
00:25:32,640 --> 00:25:36,639
Speaker 6: of little startups, two or three founders take some space,

527
00:25:36,840 --> 00:25:39,679
Speaker 6: one room, a meeting room to try and get their

528
00:25:39,720 --> 00:25:42,600
Speaker 6: company off the ground. I wondered, if it's happening outside

529
00:25:42,600 --> 00:25:45,520
Speaker 6: of San Francisco, if there's a tangible impact on your

530
00:25:45,560 --> 00:25:47,560
Speaker 6: business from AI around the world.

531
00:25:47,720 --> 00:25:51,240
Speaker 12: Well, there absolutely there's a tangible impact on a business

532
00:25:51,240 --> 00:25:55,440
Speaker 12: from really two directions. So first of all, the sort

533
00:25:55,440 --> 00:26:00,000
Speaker 12: of change in workplace is being driven by technology, basic technology,

534
00:26:01,200 --> 00:26:06,480
Speaker 12: the Internet, teams, Zoom, etc. But also increasingly by AI

535
00:26:06,800 --> 00:26:11,200
Speaker 12: supplemented and driven platforms that allow companies to much better

536
00:26:11,320 --> 00:26:16,720
Speaker 12: manage productivity in their workforce. So we're seeing that come

537
00:26:16,760 --> 00:26:20,160
Speaker 12: into the workplace now, and we're also seeing large numbers

538
00:26:20,200 --> 00:26:25,119
Speaker 12: of startups, and alongside layoffs and redundancies around the world

539
00:26:25,160 --> 00:26:27,760
Speaker 12: and in some parts of America, you're seeing a lot

540
00:26:27,800 --> 00:26:31,359
Speaker 12: more startups. And we're seeing those come through not necessarily

541
00:26:32,000 --> 00:26:35,440
Speaker 12: in downtown San Francisco, but all across the Bay and

542
00:26:36,040 --> 00:26:38,880
Speaker 12: in the suburbs all over California.

543
00:26:40,080 --> 00:26:41,639
Speaker 6: And I just want to explain to our audience it

544
00:26:41,720 --> 00:26:44,440
Speaker 6: was a rejiss space that I visited recently as part

545
00:26:44,440 --> 00:26:48,119
Speaker 6: of the documentary that I'm making where I witnessed this phenomenon,

546
00:26:48,119 --> 00:26:51,760
Speaker 6: so you know I've seen it. What is the biggest

547
00:26:51,840 --> 00:26:56,480
Speaker 6: driver technologically speaking of people not to take off office space?

548
00:26:56,520 --> 00:26:59,000
Speaker 6: In other words, are you still seeing people kind of

549
00:26:59,160 --> 00:27:02,560
Speaker 6: rely on Zoom technology for example, to work at home

550
00:27:02,600 --> 00:27:04,240
Speaker 6: and how much does that worry you still?

551
00:27:04,480 --> 00:27:05,480
Speaker 12: Well, it's sort of.

552
00:27:05,640 --> 00:27:06,640
Speaker 4: It's quite good for us.

553
00:27:07,800 --> 00:27:12,960
Speaker 12: We have about seven hundred thousand customers today individuals that

554
00:27:13,160 --> 00:27:16,120
Speaker 12: are working from home, so it's quite a big part

555
00:27:16,680 --> 00:27:20,040
Speaker 12: of our business. And all of these people working from

556
00:27:20,040 --> 00:27:23,000
Speaker 12: home using Zoom or teams or whatever are all dropping

557
00:27:23,000 --> 00:27:25,320
Speaker 12: into and office some of the time, so that is

558
00:27:25,359 --> 00:27:29,200
Speaker 12: become an increasingly significant part of the business. So hybrid

559
00:27:29,280 --> 00:27:32,399
Speaker 12: working is becoming the norm. It's going to be a

560
00:27:32,560 --> 00:27:37,479
Speaker 12: very very significant business in the future. We've said this

561
00:27:37,520 --> 00:27:42,960
Speaker 12: week to investors about a two trillion TAM and it's

562
00:27:43,000 --> 00:27:46,640
Speaker 12: growing every day as a result of technology and as

563
00:27:46,680 --> 00:27:50,440
Speaker 12: a result of companies like ours that put a technology

564
00:27:50,480 --> 00:27:53,600
Speaker 12: platform together with a real estate platform and make it

565
00:27:53,640 --> 00:27:56,760
Speaker 12: available with simple and easy to buy products. That's what's

566
00:27:56,840 --> 00:27:57,600
Speaker 12: driving growth.

567
00:27:57,720 --> 00:27:58,960
Speaker 5: You're going to list here.

568
00:27:58,920 --> 00:28:02,160
Speaker 12: Maybe at some point, but at the moment, it's really

569
00:28:02,480 --> 00:28:07,320
Speaker 12: we're so focused on growth. We put out a medium

570
00:28:07,400 --> 00:28:10,840
Speaker 12: term target of a billion dollars of EBITDAR and our

571
00:28:10,880 --> 00:28:14,320
Speaker 12: cash flow is very close to EBITDAR, so we're focused

572
00:28:14,320 --> 00:28:17,919
Speaker 12: on that. The movement of the listing from London to

573
00:28:18,040 --> 00:28:22,080
Speaker 12: another market is it's a consideration and we're always focused

574
00:28:22,080 --> 00:28:25,200
Speaker 12: on what's best for our investors. So a larger investor

575
00:28:25,240 --> 00:28:28,800
Speaker 12: base here in in the United States it may be

576
00:28:28,920 --> 00:28:30,600
Speaker 12: expedient to actually move the listing.

577
00:28:31,359 --> 00:28:34,159
Speaker 3: Fascinating Mark Dixon, come back when you talk to your

578
00:28:34,200 --> 00:28:37,000
Speaker 3: American investors, love having you here, of course, very well

579
00:28:37,000 --> 00:28:39,840
Speaker 3: known entrepreneur in the UK and talking much more here

580
00:28:39,880 --> 00:28:40,800
Speaker 3: across the Atlantic.

581
00:28:41,120 --> 00:28:41,160
Speaker 4: Ed.

582
00:28:42,040 --> 00:28:45,080
Speaker 6: Yeah, well, a top story over in Europe. And meanwhile

583
00:28:45,120 --> 00:28:49,480
Speaker 6: in Brussels in particular, you know, EU negotiators remain divided

584
00:28:49,680 --> 00:28:52,680
Speaker 6: on a plan to adopt the most comprehensive regulation for

585
00:28:52,800 --> 00:28:56,320
Speaker 6: AI technology in the Western world. They debated it for

586
00:28:56,400 --> 00:28:59,640
Speaker 6: nearly twenty four hours, sitting through it, Bloombergs, Gulianduys.

587
00:28:59,680 --> 00:29:02,680
Speaker 4: She joined us now from Brussels. The stakes are high here.

588
00:29:02,520 --> 00:29:05,720
Speaker 6: And they've really not made any progress on a codified

589
00:29:06,000 --> 00:29:07,800
Speaker 6: EU wide AI position.

590
00:29:08,280 --> 00:29:09,280
Speaker 8: No, it's been interesting.

591
00:29:09,320 --> 00:29:11,440
Speaker 13: I mean last night I was talking to us in

592
00:29:11,480 --> 00:29:13,960
Speaker 13: Caroline that it was going to be Elite one, but

593
00:29:14,000 --> 00:29:16,840
Speaker 13: I had no idea it would be negotiations that spend

594
00:29:16,960 --> 00:29:19,680
Speaker 13: over nearly twenty four hours and we still don't have

595
00:29:19,760 --> 00:29:23,200
Speaker 13: a final deal. By the time talks wrapped up today

596
00:29:23,440 --> 00:29:25,880
Speaker 13: around one pm, we had some officials even falling asleep

597
00:29:25,920 --> 00:29:28,480
Speaker 13: at their desks, so we had, you know, people said, okay,

598
00:29:28,480 --> 00:29:29,840
Speaker 13: it's time to take a break, time to get some

599
00:29:29,960 --> 00:29:31,320
Speaker 13: sleep on their pre grouping.

600
00:29:31,640 --> 00:29:33,600
Speaker 8: Come back tomorrow at NINEI and Brussels time.

601
00:29:34,000 --> 00:29:36,080
Speaker 3: Let's just talk about the stumbling blocks here, because what

602
00:29:36,160 --> 00:29:38,000
Speaker 3: I was interested to see in your reporting was that

603
00:29:38,040 --> 00:29:42,360
Speaker 3: actually generative AI and the regulation of that seems to

604
00:29:42,400 --> 00:29:44,920
Speaker 3: have perhaps been an area that they can agree on.

605
00:29:45,000 --> 00:29:47,480
Speaker 3: It seems to be other areas that they're still stumbling over.

606
00:29:47,680 --> 00:29:48,120
Speaker 8: Absolutely.

607
00:29:48,120 --> 00:29:51,840
Speaker 13: So they cleared one major hurdle around two am this morning,

608
00:29:52,400 --> 00:29:54,240
Speaker 13: and that was really done in this generally that generative

609
00:29:54,240 --> 00:29:57,640
Speaker 13: A controls question, and there they basically decided, okay, there'll

610
00:29:57,640 --> 00:30:01,240
Speaker 13: be some basic transparency requirements for the developers of these

611
00:30:01,280 --> 00:30:04,240
Speaker 13: AI systems, and then those are posed a systemic risk,

612
00:30:04,320 --> 00:30:06,680
Speaker 13: they'll have to send under codes of conduct. But once

613
00:30:06,680 --> 00:30:09,040
Speaker 13: they cleared that kind of controversial debate, they moved on

614
00:30:09,080 --> 00:30:09,400
Speaker 13: to one.

615
00:30:09,440 --> 00:30:11,320
Speaker 8: That's even more contentious here.

616
00:30:11,160 --> 00:30:13,840
Speaker 13: In Brussels because before the Journal of AIA debate really

617
00:30:13,880 --> 00:30:16,520
Speaker 13: kicked off here there was this big debate over how

618
00:30:16,720 --> 00:30:20,520
Speaker 13: governments and how police use AI in law enforcement in

619
00:30:20,600 --> 00:30:21,320
Speaker 13: national security.

620
00:30:21,880 --> 00:30:25,000
Speaker 6: We forget sometimes that the EU is four hundred and

621
00:30:25,080 --> 00:30:27,800
Speaker 6: fifty million people, A big chunk of our Bloomberg technology

622
00:30:27,800 --> 00:30:30,680
Speaker 6: audience is there, and that's why we frame it is

623
00:30:30,760 --> 00:30:33,800
Speaker 6: this is a critical piece of global regulation.

624
00:30:35,680 --> 00:30:37,000
Speaker 4: What's the procedure though?

625
00:30:37,040 --> 00:30:39,640
Speaker 6: Who are the people that actually decide the fate of

626
00:30:39,680 --> 00:30:41,520
Speaker 6: those four hundred and fifty million in terms of how

627
00:30:41,560 --> 00:30:43,840
Speaker 6: AI is regulated on their behalf?

628
00:30:44,040 --> 00:30:45,640
Speaker 8: So it's a quite complicated system.

629
00:30:45,640 --> 00:30:48,239
Speaker 13: But you do have European parliaments where you've got at

630
00:30:48,320 --> 00:30:51,800
Speaker 13: least two lead authors and many shadow uppert tours from

631
00:30:51,800 --> 00:30:52,440
Speaker 13: different parties.

632
00:30:52,520 --> 00:30:54,680
Speaker 8: You also have Spaniards.

633
00:30:54,160 --> 00:30:56,479
Speaker 13: Were leading all U twenty seven member seats, and then

634
00:30:56,520 --> 00:30:58,760
Speaker 13: you have European Commission, and I want to want to

635
00:30:58,760 --> 00:31:02,200
Speaker 13: remind everyone that everyone has very different views on this topic.

636
00:31:02,480 --> 00:31:04,959
Speaker 13: You know the Parliament in the spring they voted to

637
00:31:05,160 --> 00:31:09,080
Speaker 13: completely ban the live facial scanning technology, so you couldn't

638
00:31:09,120 --> 00:31:14,000
Speaker 13: have governments or police using CTV cameras to scan crowds

639
00:31:14,000 --> 00:31:16,880
Speaker 13: to find possible criminals. That is absolutely a red line

640
00:31:16,920 --> 00:31:19,640
Speaker 13: for you countries. But what's going to be very interesting

641
00:31:19,640 --> 00:31:22,600
Speaker 13: to see tomorrow when they regroup is that even members

642
00:31:22,600 --> 00:31:25,440
Speaker 13: within the same parliament group they had to always agree

643
00:31:25,480 --> 00:31:27,520
Speaker 13: on this topic either. So it's going to be I'd

644
00:31:27,560 --> 00:31:29,720
Speaker 13: be very surprised if you walk in tomorrow and these

645
00:31:29,840 --> 00:31:32,680
Speaker 13: negotiators come in and they's agreed to this new compromise.

646
00:31:32,720 --> 00:31:35,920
Speaker 3: At nine am, Jillian, it's been a long old week

647
00:31:35,960 --> 00:31:38,000
Speaker 3: for you, but we really appreciate you setting up late

648
00:31:38,080 --> 00:31:40,720
Speaker 3: over there, and Russells frows most Jillian Deutsch with just

649
00:31:40,760 --> 00:31:43,960
Speaker 3: some great expertise across the readia to showing spectrum.

650
00:31:43,960 --> 00:31:44,680
Speaker 5: They're coming up.

651
00:31:45,200 --> 00:31:47,880
Speaker 3: We've got a great conversation with Initialized Capital.

652
00:31:47,920 --> 00:31:48,960
Speaker 5: It's got a new partner.

653
00:31:49,440 --> 00:31:52,160
Speaker 3: We're going to be discussing just what Jennie Ferly springs

654
00:31:52,480 --> 00:31:55,719
Speaker 3: to the company. Of course, serial entrepreneur in our own

655
00:31:55,800 --> 00:31:56,560
Speaker 3: right from here.

656
00:31:56,440 --> 00:31:56,760
Speaker 5: In New York.

657
00:31:56,840 --> 00:32:11,720
Speaker 14: This is putting their technology well.

658
00:32:11,440 --> 00:32:13,040
Speaker 5: Known VC Initialized Capital.

659
00:32:13,160 --> 00:32:15,800
Speaker 3: It's got a new team member, Jenny Flyes, co founder

660
00:32:15,840 --> 00:32:19,120
Speaker 3: of course and rent the runway Walmart subsidiary Jet Black.

661
00:32:19,360 --> 00:32:22,120
Speaker 3: She's joining Initialized as a partner as with us now

662
00:32:22,160 --> 00:32:25,280
Speaker 3: for more on well as a New Yorker making the

663
00:32:25,400 --> 00:32:29,520
Speaker 3: move into seed investing to really like startup investing. What

664
00:32:29,640 --> 00:32:32,600
Speaker 3: was it that was so attractive about Initialized in particular.

665
00:32:32,800 --> 00:32:36,360
Speaker 15: Well, Initialized really sets the standard for seed and this

666
00:32:36,400 --> 00:32:38,160
Speaker 15: is an exciting time to be a seed I mean,

667
00:32:38,160 --> 00:32:40,920
Speaker 15: you have so much evolving in the world with AI

668
00:32:41,120 --> 00:32:44,360
Speaker 15: just accelerating the pace of innovation, and to work hand

669
00:32:44,400 --> 00:32:48,080
Speaker 15: in hand collaboratively. The way that Initialized does with founders

670
00:32:48,480 --> 00:32:52,040
Speaker 15: is just so true to my operational and entrepreneurial nature.

671
00:32:52,640 --> 00:32:54,480
Speaker 3: Let's talk about some of the background you've already had

672
00:32:54,480 --> 00:32:58,440
Speaker 3: in terms of helping mentor but also putting money into startups.

673
00:32:58,600 --> 00:33:00,640
Speaker 5: How much of that is occurring in New York? How

674
00:33:00,720 --> 00:33:02,200
Speaker 5: much of it is it covering across the US?

675
00:33:02,240 --> 00:33:03,959
Speaker 3: Where do you think your speaks what will lie when

676
00:33:04,000 --> 00:33:06,760
Speaker 3: it comes to I'm sure e commerce, but more broadly

677
00:33:06,840 --> 00:33:08,440
Speaker 3: your bucks to put to work.

678
00:33:08,560 --> 00:33:11,000
Speaker 15: Yeah, it's a really exciting time in New York. And

679
00:33:11,040 --> 00:33:13,760
Speaker 15: I'm thrilled that Initialized has an office and part of

680
00:33:13,800 --> 00:33:16,000
Speaker 15: its team here. That was a really big plus for me.

681
00:33:16,320 --> 00:33:18,080
Speaker 15: But when I think back to when we co founded

682
00:33:18,080 --> 00:33:21,400
Speaker 15: Rent the Runway fourteen years ago, there were very few

683
00:33:21,400 --> 00:33:23,600
Speaker 15: startups in New York and today, if I think of

684
00:33:23,680 --> 00:33:27,040
Speaker 15: my roster of Angel investments and I look at Initialized portfolios,

685
00:33:27,080 --> 00:33:31,160
Speaker 15: like there is a great group here so organically that's

686
00:33:31,280 --> 00:33:34,520
Speaker 15: driving innovation in New York, and I am really glad

687
00:33:34,560 --> 00:33:39,920
Speaker 15: to complement that with the YC sanfran ecosystem that Initialized has.

688
00:33:39,920 --> 00:33:42,880
Speaker 15: So I think our two networks pulled together, as well

689
00:33:42,880 --> 00:33:46,320
Speaker 15: as the diverse backgrounds of the existing investing team and

690
00:33:46,360 --> 00:33:48,880
Speaker 15: my background, We'll just let us work with so many

691
00:33:48,920 --> 00:33:50,040
Speaker 15: great founders and companies.

692
00:33:50,360 --> 00:33:52,240
Speaker 4: Jenny, good morning from San Francisco.

693
00:33:53,080 --> 00:33:56,360
Speaker 6: I'm obsessed to this idea that not all vcs are

694
00:33:56,360 --> 00:33:56,720
Speaker 6: the same.

695
00:33:56,800 --> 00:33:57,800
Speaker 4: You get different types.

696
00:33:57,840 --> 00:34:00,479
Speaker 6: Some have been founders, some have not, Some have come

697
00:34:00,480 --> 00:34:04,360
Speaker 6: from sort of legacy financial institutions, some have been engineers

698
00:34:04,680 --> 00:34:07,720
Speaker 6: software companies. You're a founder, and I wonder how that

699
00:34:07,800 --> 00:34:09,480
Speaker 6: helps you make investment decisions.

700
00:34:09,760 --> 00:34:13,239
Speaker 15: Yeah, well, it's a really important important part of how

701
00:34:13,239 --> 00:34:17,680
Speaker 15: I make investment decisions. My lens as an entrepreneur really

702
00:34:17,760 --> 00:34:20,719
Speaker 15: let me see how to work with investors in a

703
00:34:20,760 --> 00:34:23,839
Speaker 15: way that felt helpful and organic. And I was lucky

704
00:34:23,880 --> 00:34:27,080
Speaker 15: to have a team of former entrepreneurs and operators myself,

705
00:34:27,440 --> 00:34:29,479
Speaker 15: and it gave me a sense of how I could

706
00:34:29,520 --> 00:34:34,000
Speaker 15: relate to the aspects of entrepreneurship and a founder that

707
00:34:34,080 --> 00:34:37,040
Speaker 15: I think are game changing for picking winning investments. And

708
00:34:37,200 --> 00:34:41,200
Speaker 15: very unique to Initialized is the whole investment team is

709
00:34:41,320 --> 00:34:45,719
Speaker 15: former founders, operators, builders from lots of different industries and

710
00:34:46,160 --> 00:34:48,719
Speaker 15: that is so special and unique and it's really what

711
00:34:48,760 --> 00:34:51,480
Speaker 15: made me feel at home when I got to know

712
00:34:51,520 --> 00:34:54,160
Speaker 15: the team. I have met hundreds of vcs over the

713
00:34:54,200 --> 00:34:57,920
Speaker 15: course of my career, and their approach to Initialize is

714
00:34:58,000 --> 00:35:00,759
Speaker 15: very unique. And when you look at adventure, not much

715
00:35:00,760 --> 00:35:04,879
Speaker 15: has actually changed in how venture is done, and yet

716
00:35:04,920 --> 00:35:07,759
Speaker 15: the world around us has changed so much. And for Initialize,

717
00:35:07,840 --> 00:35:10,440
Speaker 15: it's like there isn't a playbook. It's like they're creating

718
00:35:10,480 --> 00:35:13,440
Speaker 15: their own playbook of what works based on their experience

719
00:35:13,800 --> 00:35:17,160
Speaker 15: as entrepreneurs, founders, and operators. And that's exciting to me.

720
00:35:17,239 --> 00:35:20,279
Speaker 15: That's fast paced and entrepreneurial and feels comfortable to me.

721
00:35:20,680 --> 00:35:22,960
Speaker 6: Right, Like, even with the playbook, there's a lot of

722
00:35:23,040 --> 00:35:25,480
Speaker 6: choice though, Right, So you're doing seed, but you're doing

723
00:35:25,520 --> 00:35:29,480
Speaker 6: seed across such a broad range of categories. Is there

724
00:35:29,520 --> 00:35:33,520
Speaker 6: one particular area that you're really excited about thematically that

725
00:35:33,600 --> 00:35:35,719
Speaker 6: you think you'll write a lot of checks too.

726
00:35:36,520 --> 00:35:39,120
Speaker 15: Yeah, I'm excited about a lot of areas, which is

727
00:35:39,120 --> 00:35:41,759
Speaker 15: why I love that initialized as a generalist fund and

728
00:35:41,760 --> 00:35:43,239
Speaker 15: I'll have a lot of room to play. But to

729
00:35:43,280 --> 00:35:45,320
Speaker 15: call out a couple of things that are really exciting

730
00:35:45,400 --> 00:35:45,839
Speaker 15: right now.

731
00:35:46,320 --> 00:35:47,520
Speaker 5: AI accessibility.

732
00:35:47,640 --> 00:35:50,719
Speaker 15: So obviously AI has already transformed our world and is

733
00:35:50,800 --> 00:35:53,680
Speaker 15: still evolving so quickly each day, but we're getting to

734
00:35:53,760 --> 00:35:56,279
Speaker 15: a place where it's starting to become more accessible to

735
00:35:56,320 --> 00:35:59,680
Speaker 15: consumers and also to larger companies as we think of

736
00:35:59,680 --> 00:36:03,000
Speaker 15: b towam be plugins and solutions that combine AI and

737
00:36:03,040 --> 00:36:06,799
Speaker 15: agents and hit that sweet spot of efficacy, efficiency, and

738
00:36:06,840 --> 00:36:11,400
Speaker 15: also trust. I'm also really excited about ways that personalization

739
00:36:11,840 --> 00:36:16,080
Speaker 15: are evolving, one to one personalization with the help of AI.

740
00:36:16,719 --> 00:36:18,960
Speaker 15: And I continue to be such a fan of just

741
00:36:19,040 --> 00:36:22,080
Speaker 15: asset utilization, so you know, Rent the Runway being one example,

742
00:36:22,120 --> 00:36:25,480
Speaker 15: but so many businesses that are finding more creative ways

743
00:36:25,520 --> 00:36:29,719
Speaker 15: to use their assets and service customers in a smarter way.

744
00:36:30,760 --> 00:36:33,480
Speaker 15: Is I think, changing consumer behavior. It's what it's all

745
00:36:33,520 --> 00:36:35,320
Speaker 15: about at the core of what gets me excited.

746
00:36:36,160 --> 00:36:39,200
Speaker 3: What's so interesting, Well, the story of Rent the Runway,

747
00:36:39,360 --> 00:36:41,439
Speaker 3: I think for me, was the day that the bell

748
00:36:41,640 --> 00:36:46,080
Speaker 3: was rung and just all the leadership being women. What

749
00:36:46,440 --> 00:36:49,319
Speaker 3: stood out in the Initialized announcement was just how much

750
00:36:49,360 --> 00:36:50,759
Speaker 3: diversity there is at.

751
00:36:50,680 --> 00:36:51,839
Speaker 5: A VC like that.

752
00:36:51,880 --> 00:36:55,040
Speaker 3: What would eighty percent of partners basically being women. I'm

753
00:36:55,080 --> 00:36:58,280
Speaker 3: interested as to whether that has to be something that's organic,

754
00:36:58,520 --> 00:37:01,000
Speaker 3: because the choosing the best talent, whether it's really driven

755
00:37:01,040 --> 00:37:03,319
Speaker 3: and motivating fools, is something that you'll look to when

756
00:37:03,360 --> 00:37:05,680
Speaker 3: you're allocating tools, maybe douve as founders.

757
00:37:06,120 --> 00:37:09,480
Speaker 15: Yeah, I'm so proud and thrilled that I am with

758
00:37:09,560 --> 00:37:13,000
Speaker 15: a company that has eighty percent of our investment team female.

759
00:37:13,320 --> 00:37:16,520
Speaker 15: It wasn't a requirement of mine, nor do I believe

760
00:37:16,560 --> 00:37:19,719
Speaker 15: it was a requirement for Initialized. You know, they optimize

761
00:37:19,719 --> 00:37:22,680
Speaker 15: for the best talent, for founders and for the right

762
00:37:22,760 --> 00:37:26,520
Speaker 15: fit to complement their team. But naturally that is what

763
00:37:26,640 --> 00:37:29,360
Speaker 15: organically came about and for me at the course of

764
00:37:29,400 --> 00:37:33,120
Speaker 15: my career likewise, it's really been that way for rent

765
00:37:33,120 --> 00:37:35,360
Speaker 15: the runway at Jet Black and Walmart, the teams I

766
00:37:35,360 --> 00:37:37,520
Speaker 15: worked with were always largely women, and I think the

767
00:37:37,680 --> 00:37:41,279
Speaker 15: perspective that you can bring an advantage point when you

768
00:37:41,320 --> 00:37:45,680
Speaker 15: connect to different groups of consumers is so powerful and Initialized.

769
00:37:45,680 --> 00:37:49,560
Speaker 15: There's diversity in so many ways, like age, male, female,

770
00:37:49,880 --> 00:37:52,719
Speaker 15: different ethnicities, and all of that I think makes us

771
00:37:52,719 --> 00:37:55,880
Speaker 15: best equipped to think of industry disruption and ways to

772
00:37:55,920 --> 00:37:57,520
Speaker 15: connect with different types of founders.

773
00:37:58,160 --> 00:38:00,680
Speaker 3: When we think of disruption, we think actually, sort of

774
00:38:00,680 --> 00:38:02,239
Speaker 3: the pressure that rent in the runway is still on

775
00:38:02,360 --> 00:38:05,480
Speaker 3: the when it look at a market capitalization perspective, when

776
00:38:05,480 --> 00:38:07,879
Speaker 3: you think of just E commace more broadly, I've talked

777
00:38:07,880 --> 00:38:10,160
Speaker 3: to many vcs, So just saying I'm not touching consumer

778
00:38:10,239 --> 00:38:12,040
Speaker 3: stuff with a bodge pole at the moment, is that

779
00:38:12,080 --> 00:38:14,880
Speaker 3: something you agree with or actually, do you need to

780
00:38:14,920 --> 00:38:18,160
Speaker 3: still see the opportunity in a consumer that still is

781
00:38:18,160 --> 00:38:19,680
Speaker 3: pretty resilient in the US right now.

782
00:38:19,840 --> 00:38:21,880
Speaker 15: I think it's an exciting moment to be contrarian in

783
00:38:21,920 --> 00:38:25,360
Speaker 15: that category. So I'm still really excited about innovation in

784
00:38:25,400 --> 00:38:28,560
Speaker 15: the consumer landscape. You know, valuations for a while or

785
00:38:28,760 --> 00:38:31,000
Speaker 15: very exaggerated, and I think that's come back to a

786
00:38:31,040 --> 00:38:32,320
Speaker 15: place that's much more healthy.

787
00:38:32,600 --> 00:38:33,399
Speaker 5: And then there's been a.

788
00:38:33,320 --> 00:38:36,120
Speaker 15: Lot of macro factors that have made it easier for

789
00:38:36,320 --> 00:38:38,920
Speaker 15: various companies to launch consumer businesses and brands. So it's

790
00:38:38,920 --> 00:38:41,239
Speaker 15: meant that there's a lot more clutter and breaking through

791
00:38:41,239 --> 00:38:44,560
Speaker 15: the noise was harder, and cost of customer acquisition went up.

792
00:38:44,800 --> 00:38:47,120
Speaker 15: But now I think you are able to start to

793
00:38:47,160 --> 00:38:49,799
Speaker 15: see some companies that can break through that, and so,

794
00:38:50,000 --> 00:38:53,520
Speaker 15: of course consumers still want exciting new brands to engage with.

795
00:38:53,880 --> 00:38:56,440
Speaker 15: I'd say, in particular, what gets me excited is brands

796
00:38:56,440 --> 00:39:01,319
Speaker 15: that spark experiential components of that pull on our heartstrings

797
00:39:01,320 --> 00:39:03,600
Speaker 15: and touch different experiences we have in our life. Because

798
00:39:03,640 --> 00:39:06,120
Speaker 15: the Internet has made things so commoditized, we can buy

799
00:39:06,160 --> 00:39:08,399
Speaker 15: things cheap, we can get it quickly, we can find

800
00:39:08,440 --> 00:39:13,040
Speaker 15: almost anything, and so injecting that a sense of personalization

801
00:39:13,120 --> 00:39:16,759
Speaker 15: and that essence of experiential thoughtfulness like that, to me,

802
00:39:17,000 --> 00:39:18,719
Speaker 15: is where it's at as I think of this next

803
00:39:18,760 --> 00:39:20,280
Speaker 15: generation of consumer brands.

804
00:39:21,160 --> 00:39:25,040
Speaker 6: Jenny, one mistake that you made or lesson you learned

805
00:39:25,239 --> 00:39:27,040
Speaker 6: through the rent the Wrong Way experience, and you're still

806
00:39:27,040 --> 00:39:27,560
Speaker 6: on the board.

807
00:39:27,640 --> 00:39:30,240
Speaker 4: But what's a piece of advice that you give based

808
00:39:30,280 --> 00:39:30,520
Speaker 4: on that?

809
00:39:31,160 --> 00:39:33,600
Speaker 15: Gosh, well, I feel lucky to have made lots of

810
00:39:33,680 --> 00:39:35,440
Speaker 15: mistakes over the course of my career because that's how

811
00:39:35,480 --> 00:39:38,600
Speaker 15: we learn, right, especially as entrepreneurs. You Know, something that

812
00:39:38,640 --> 00:39:40,479
Speaker 15: always sticks in my mind is when we were first

813
00:39:40,480 --> 00:39:43,600
Speaker 15: starting the business, we didn't have a fashion background or

814
00:39:43,640 --> 00:39:46,760
Speaker 15: a technology background. And I'd say, with regards to fashion,

815
00:39:47,160 --> 00:39:49,560
Speaker 15: we quickly scaled that learning curve. We had a lot

816
00:39:49,560 --> 00:39:51,799
Speaker 15: of conversations and got to meet people in all parts

817
00:39:51,840 --> 00:39:54,640
Speaker 15: of the industry, but related to technology, we were much

818
00:39:54,680 --> 00:39:57,800
Speaker 15: more intimidated by the fact that we weren't engineers ourselves,

819
00:39:57,800 --> 00:40:00,400
Speaker 15: and we thought we could outsource that part of the business.

820
00:40:00,400 --> 00:40:03,360
Speaker 15: And the reality is that anything mission critical of the company,

821
00:40:03,920 --> 00:40:06,239
Speaker 15: you really can't outsource, right, and you need to find

822
00:40:06,280 --> 00:40:08,600
Speaker 15: ways to at least probe and ask the questions or

823
00:40:08,920 --> 00:40:11,839
Speaker 15: have eyes on whatever is happening, you know, day to day.

824
00:40:12,600 --> 00:40:15,040
Speaker 15: And so we learned that lesson, luckily, like pretty quickly.

825
00:40:15,040 --> 00:40:16,560
Speaker 15: And I don't think it, you know, took us, it

826
00:40:16,600 --> 00:40:19,399
Speaker 15: took us too far off course. But it's also part

827
00:40:19,440 --> 00:40:21,640
Speaker 15: of what made me really excited to be INITIALIZED, because

828
00:40:21,640 --> 00:40:25,000
Speaker 15: there's former engineers that are investors at this company, and

829
00:40:25,040 --> 00:40:28,760
Speaker 15: so their ability to connect with founders and different companies

830
00:40:28,800 --> 00:40:31,320
Speaker 15: that are so far afield from what my natural skill

831
00:40:31,320 --> 00:40:34,719
Speaker 15: set and comfort zone is really lets me build this

832
00:40:34,840 --> 00:40:38,319
Speaker 15: nice complementary skill set and base of companies to connect with.

833
00:40:39,400 --> 00:40:42,359
Speaker 6: Jenny flies Initialized Capital partner as of today.

834
00:40:42,040 --> 00:40:57,160
Speaker 4: Thank you for your time. This, thank you, It's Bloomberg Technology.

835
00:40:58,520 --> 00:41:01,879
Speaker 3: After congressional hearing on anti Semitism. Social media has been

836
00:41:01,880 --> 00:41:05,520
Speaker 3: talking at NonStop about the presidents of Harvard University, University

837
00:41:05,520 --> 00:41:09,080
Speaker 3: of Pennsylvania MIT, and now many of those presidents, well,

838
00:41:09,080 --> 00:41:12,120
Speaker 3: they're having to issue statements clarifying their responses here to

839
00:41:12,160 --> 00:41:15,719
Speaker 3: provide more context bloombds Janet Lauren and ultimately this is

840
00:41:15,880 --> 00:41:19,200
Speaker 3: a backlash about the way in which they answered certain questions.

841
00:41:20,080 --> 00:41:22,480
Speaker 3: My question is what happens next, because there's a lot

842
00:41:22,520 --> 00:41:25,279
Speaker 3: of echo chambers going on on the internet saying they're

843
00:41:25,320 --> 00:41:26,759
Speaker 3: going to have to hand in their resignations.

844
00:41:26,800 --> 00:41:27,480
Speaker 5: What do you make to that.

845
00:41:27,920 --> 00:41:31,320
Speaker 2: Well, as we know, universities don't move as lightning fast

846
00:41:31,400 --> 00:41:34,480
Speaker 2: as a public company. For example, if that happened to

847
00:41:34,520 --> 00:41:36,800
Speaker 2: a public company CEO, you would have had an immediate

848
00:41:36,840 --> 00:41:40,400
Speaker 2: indication in stock price. So the question is what are

849
00:41:40,440 --> 00:41:43,840
Speaker 2: the boards talking about right now? They're definitely hearing from alumni,

850
00:41:43,960 --> 00:41:48,840
Speaker 2: they're hearing from politicians, including Pennsylvania's governor also weighed in

851
00:41:48,960 --> 00:41:53,080
Speaker 2: as well as congressmen in Massachusetts, both Harvard alums and Democrats.

852
00:41:53,480 --> 00:41:56,040
Speaker 2: So it is both sides that were not thrilled with

853
00:41:56,080 --> 00:41:59,440
Speaker 2: what happened at this hearing. But what is the support

854
00:41:59,440 --> 00:42:01,880
Speaker 2: of the facult We're not sure what is going to

855
00:42:01,920 --> 00:42:05,560
Speaker 2: happen going forward. We know there's a regularly scheduled pen

856
00:42:06,160 --> 00:42:09,640
Speaker 2: luncheon going on right now. Maybe we'll hear something afterwards.

857
00:42:10,000 --> 00:42:13,000
Speaker 2: It may be presidents, it may be boards members or

858
00:42:13,000 --> 00:42:16,400
Speaker 2: the boards of trustees, but we'll have to see what happens.

859
00:42:16,440 --> 00:42:18,600
Speaker 2: But we do know in hearing from the students, it

860
00:42:18,719 --> 00:42:22,279
Speaker 2: also worth in Washington, they don't feel safe, they don't

861
00:42:22,280 --> 00:42:25,359
Speaker 2: feel like there's a safe environment going on. Classes are

862
00:42:25,400 --> 00:42:30,040
Speaker 2: being disrupted, there's marches going on, So there's an impetus

863
00:42:30,040 --> 00:42:33,640
Speaker 2: for leadership to address these issues. Is it acceptable for

864
00:42:33,760 --> 00:42:38,040
Speaker 2: campus classrooms to be disrupted? And the word entifata, what

865
00:42:38,080 --> 00:42:41,200
Speaker 2: does that mean? Well, if it were used in other context,

866
00:42:41,600 --> 00:42:44,000
Speaker 2: the definition, what happens to those students.

867
00:42:45,200 --> 00:42:48,760
Speaker 3: It's a question that is being asked loudly by many

868
00:42:48,920 --> 00:42:51,120
Speaker 3: an alum who happens to work in the technology field.

869
00:42:51,120 --> 00:42:52,360
Speaker 3: So it's one that we want to address with you,

870
00:42:52,440 --> 00:42:54,560
Speaker 3: and we'll invite you back as well to continue as

871
00:42:54,560 --> 00:42:56,600
Speaker 3: the story unfolds. Thank you so much done at Lauren,

872
00:42:56,640 --> 00:42:59,720
Speaker 3: of course, some amazing report and going on the ramifications

873
00:42:59,800 --> 00:43:03,160
Speaker 3: of that congressional hearing. Aid Meanwhile, that does it for

874
00:43:03,160 --> 00:43:04,560
Speaker 3: this edition of Bloombog Technology.

875
00:43:05,040 --> 00:43:08,200
Speaker 6: Yep, another jam pack Thursday, so much recap on our podcast.

876
00:43:08,280 --> 00:43:10,240
Speaker 6: Big thanks to everyone that is checking out the podcast.

877
00:43:10,280 --> 00:43:13,080
Speaker 6: We're on Apple, Spotify, iHeart, and of course on the

878
00:43:13,120 --> 00:43:16,360
Speaker 6: Bloomberg platforms. From San Francisco and over in New York City.

879
00:43:16,719 --> 00:43:18,239
Speaker 6: This is Bloomberg Technology.