WEBVTT - Binance-FTX Cancelled and Meta's Job Cuts 0:00:02.279 --> 0:00:05.560 From the heart of where innovation, money and power Colli 0:00:06.400 --> 0:00:10.920 in Silicon Vallet and beyond. This is Bloomberg Technology with 0:00:11.000 --> 0:00:28.600 Emily jay I remember like Jeck in San Francisco, and 0:00:28.640 --> 0:00:30.800 this is Bloomberg Technology. Coming up in the next hour, 0:00:31.000 --> 0:00:33.840 Finance is walking away from buying f t X after 0:00:33.880 --> 0:00:36.760 looking at its balance sheet. This after Bloomberg broke the 0:00:36.800 --> 0:00:40.600 news on the US investigation into the ft X liquidity crisis. 0:00:40.760 --> 0:00:43.199 We're gonna have coverage of the crypto blow up throughout 0:00:43.280 --> 0:00:49.120 this show. Plus eleven thousand employees at Meta laid off 0:00:49.159 --> 0:00:52.800 as Mark Zuckerberg admits his Metaverse vision was a mistake. 0:00:53.400 --> 0:00:56.160 We're going to dig in and Reid Hoffman joins us 0:00:56.200 --> 0:00:58.640 to talk about the next decade of tech innovation and 0:00:58.680 --> 0:01:02.040 how big the future is for AI. Plus Gary tan 0:01:02.600 --> 0:01:04.720 is with us to talk about how he thinks tech 0:01:04.760 --> 0:01:09.880 and Silicon Valley survive a looming recession. But first, before 0:01:09.920 --> 0:01:11.240 we get a check of the markets. You may have 0:01:11.319 --> 0:01:13.480 read that this is my last week coasting bloom Brick 0:01:13.520 --> 0:01:17.520 Technology after twelve years sitting right here. I'm going to 0:01:17.560 --> 0:01:20.240 be expanding our coverage with new shows focused on the 0:01:20.240 --> 0:01:23.240 most important people and issues at the heart of Tech, 0:01:23.280 --> 0:01:27.440 Business and Culture. I'm not gonna cry. I'm gonna try 0:01:27.560 --> 0:01:30.600 not to cry yet. Um, but I might tomorrow, which 0:01:30.600 --> 0:01:32.679 is going to be my last day officially in this chair. 0:01:32.760 --> 0:01:34.399 So I don't want to linger now, but I do 0:01:34.480 --> 0:01:36.640 want you to know that every day has been special 0:01:36.920 --> 0:01:40.040 and there's so much more to come. Meantime, US financial 0:01:40.120 --> 0:01:43.960 regulators are investigating whether f t X properly handled customer 0:01:44.120 --> 0:01:47.520 funds as Finance walks away from a deal to save 0:01:47.600 --> 0:01:50.640 Sam Bankman Freed's exchange bloom Brigs. Katie Greifeld covers the 0:01:50.680 --> 0:01:54.600 markets with us. Katie, what has happened in the last 0:01:54.640 --> 0:01:58.520 twenty four hours. You know, almost as quickly as Finance 0:01:58.560 --> 0:02:00.120 said it was going to come to the rest you, 0:02:00.200 --> 0:02:02.880 it's already backing away from this deal. And it seems 0:02:02.880 --> 0:02:07.000 that there's two big concerns here. There's that big financial 0:02:07.080 --> 0:02:09.760 hole that Finance was looking into when it actually looked 0:02:09.919 --> 0:02:12.560 at ft X is financing. There's great reporting on the 0:02:12.600 --> 0:02:15.680 Bloomberg terminal breaking just in the last few minutes that 0:02:15.919 --> 0:02:18.880 Sam Bateman Freed told investors that f t X was 0:02:18.919 --> 0:02:21.680 going to need a cash injection or it's going to 0:02:21.760 --> 0:02:25.799 file for bankruptcy. They SPF told investors that the company 0:02:25.840 --> 0:02:28.560 faced a shortfall of up to eight billion dollars. That 0:02:28.720 --> 0:02:30.799 is quite the hole that we're talking about. The other 0:02:30.840 --> 0:02:34.799 side is what is going on with the customer funds. 0:02:34.840 --> 0:02:38.079 Another Bloomberg News exclusive today breaking the news that US 0:02:38.160 --> 0:02:41.480 regulators are looking at that issue, whether f t X 0:02:41.560 --> 0:02:45.240 improperly handled customer funds. You look at the statement that 0:02:45.320 --> 0:02:48.040 Finance put out, it seems that both of those issues 0:02:48.080 --> 0:02:50.360 were top of mind when they were considering whether to 0:02:50.360 --> 0:02:55.440 actually go through with this takeover. Katie. Brian Armstrong, the 0:02:55.480 --> 0:02:59.480 CEO coin Base, called into the show yesterday to talk 0:02:59.520 --> 0:03:03.120 about his take on the deal, and we asked whether 0:03:03.280 --> 0:03:06.160 coin based had thought about acquiring f t X. Take 0:03:06.160 --> 0:03:09.400 a listen to what he said. I had a number 0:03:09.400 --> 0:03:12.680 of conversations with people over the last twenty four hours, 0:03:12.760 --> 0:03:16.000 and um, there's reasons why that would not make sense, 0:03:16.000 --> 0:03:18.679 and I're not quite at liberty to share the details 0:03:18.760 --> 0:03:21.400 right now. I think I'm gonna let other people share 0:03:21.440 --> 0:03:23.919 that if and when they're ready, or probably all come 0:03:23.919 --> 0:03:29.400 out eventually. Some foreshadowing there maybe what should we be 0:03:29.440 --> 0:03:32.639 looking out for going forward? I think the big question, 0:03:32.960 --> 0:03:36.080 among many big questions is what actually happens to f 0:03:36.200 --> 0:03:38.360 t X users right now. And also in that interview 0:03:38.400 --> 0:03:40.920 which I was tuned into, that was a great get. 0:03:40.960 --> 0:03:43.400 I mean, Brian Armstrong also made the point that if 0:03:43.440 --> 0:03:46.240 the deal does fall through, then f t X customers 0:03:46.520 --> 0:03:49.440 would face losses. And that's what's at stake here, because 0:03:49.480 --> 0:03:51.760 if you think back all the way to yesterday, we 0:03:51.760 --> 0:03:54.960 got a tweet from SPF saying that all asserts will 0:03:55.000 --> 0:03:57.080 be covered one to one. This is one of the 0:03:57.120 --> 0:04:00.400 main reasons why we've asked finance to come. And so 0:04:00.440 --> 0:04:04.680 without finance there to provide liquidity for those massive withdrawals 0:04:04.680 --> 0:04:08.160 that FTX is facing, it's unclear what happens here to 0:04:08.240 --> 0:04:13.640 those actual customers. All right, Bloomberg's Katie Greifeld another one. 0:04:13.680 --> 0:04:15.920 We're going to continue to watch every twist in turn. 0:04:16.000 --> 0:04:20.240 Thank you for that update. Meantime, Meta CEO Mark Zuckerberg 0:04:20.320 --> 0:04:23.680 saying the company will cut more than eleven thousand jobs. 0:04:24.200 --> 0:04:27.080 This is the first major round of layoffs in the 0:04:27.120 --> 0:04:29.240 social media giants history. From where I want to bring 0:04:29.240 --> 0:04:32.960 in Bloomberg's Alex Brinka, Alex, eleven thousand is a lot 0:04:33.440 --> 0:04:35.880 of people. Where are the what departments are these people 0:04:36.400 --> 0:04:39.839 coming from? And how were these decisions made? Emily, No 0:04:40.080 --> 0:04:43.680 team was spared here. Mark Zuckerberg told the organization this 0:04:43.720 --> 0:04:47.839 morning that every single app, Facebook, Instagram, WhatsApp would be affected, 0:04:47.839 --> 0:04:51.400 as well as their metaverse efforts which sit in reality labs. 0:04:51.440 --> 0:04:52.839 But there are two that I want to point out 0:04:52.839 --> 0:04:54.760 that seemed to have been hit the hardest. That is 0:04:54.920 --> 0:04:57.880 recruiting as they also have a hiring free still in effect, 0:04:58.200 --> 0:05:02.200 and some of their business teams that will be restructured now. 0:05:02.240 --> 0:05:04.280 In a memo that went out to employees that was 0:05:04.320 --> 0:05:08.080 reviewed by us here at Bloomberg existing employees who are staying, 0:05:08.240 --> 0:05:11.400 it was said that the highest levels of leadership actually 0:05:11.440 --> 0:05:14.160 made these decisions and most managers didn't actually find out 0:05:14.160 --> 0:05:17.080 about it until this morning, of who would be staying 0:05:17.080 --> 0:05:19.880 on their team and who would actually be departing amongst 0:05:19.880 --> 0:05:25.480 those eleven thousand employees. Let's talk about Mark Zuckerberg's words 0:05:25.520 --> 0:05:28.520 here and what he took accountability for. I believed to 0:05:28.600 --> 0:05:31.159 even used the word sorry. He said, I want to 0:05:31.160 --> 0:05:33.880 take accountability for these decisions and how we got here. 0:05:34.000 --> 0:05:37.479 I know this is tough for everyone, and I'm especially 0:05:37.920 --> 0:05:41.280 sorry to those impacted. How much further did he go 0:05:41.400 --> 0:05:46.240 in terms of talking about the big metaverse pivot. Yeah, 0:05:46.240 --> 0:05:48.919 he said frankly. Um, he got it wrong. Not so 0:05:49.000 --> 0:05:51.360 much about the metaverse pivot, but the bet they're making 0:05:51.480 --> 0:05:54.120 right now that this big shift to online shopping and 0:05:54.160 --> 0:05:57.640 spending more time online that we saw during COVID would continue. 0:05:57.760 --> 0:06:01.320 They staffed up to be ready for that. And not 0:06:01.400 --> 0:06:04.360 only is that bet, um kind of flailing here, Emily. 0:06:04.600 --> 0:06:06.560 To your point, they have this massive bet on the 0:06:06.600 --> 0:06:09.760 metaverse they're now spending too, so a really tough time 0:06:09.800 --> 0:06:12.680 for them. The shares are down this year, even with 0:06:12.720 --> 0:06:15.719 that little pop that we saw today. Um, and maybe 0:06:15.760 --> 0:06:20.440 some questions for where Mark Zuckerberg is guiding both the 0:06:20.480 --> 0:06:23.360 social media part of the business and this new bet, 0:06:23.480 --> 0:06:26.280 this decade long bet that will all spend more time 0:06:26.320 --> 0:06:31.680 potentially in virtual reality in the metaverse. What's the mood 0:06:31.760 --> 0:06:34.880 like inside Facebook right now? My sources are telling me 0:06:35.040 --> 0:06:39.080 that seemed a little random in terms of how the 0:06:39.160 --> 0:06:43.520 decisions were made. Uh, folks weren't necessarily consulted. They found 0:06:43.560 --> 0:06:48.720 out early this morning. Um, you know, power folks feeling. Yeah, 0:06:48.760 --> 0:06:51.160 it's pretty gloomy, Emily. If you can imagine, you know, 0:06:51.560 --> 0:06:53.599 it's hit or miss in terms of who is staying 0:06:53.600 --> 0:06:57.080 on teams. Also, you know, we're hearing that this restructuring 0:06:57.160 --> 0:06:59.920 could take some time, so what the company would look 0:07:00.040 --> 0:07:02.919 like that's not you know, written in stone as of today, 0:07:03.040 --> 0:07:04.680 on the back of the Twitter news on their big 0:07:04.760 --> 0:07:07.800 layoff a week ago and tacking on um these additional 0:07:07.839 --> 0:07:11.600 eleven thousand jobs, that's about fifteen thousand people in social 0:07:11.640 --> 0:07:14.120 media that are out of a job in the last week. 0:07:14.200 --> 0:07:16.560 So not only is it gloomy on the inside, but 0:07:16.680 --> 0:07:19.040 if you spend any time on LinkedIn today, you see 0:07:19.080 --> 0:07:21.880 folks looking for new prospects, and you've got to think 0:07:21.880 --> 0:07:24.440 it's a tough world if you're a social media expert 0:07:24.440 --> 0:07:27.160 in terms of who might hire you once you're out 0:07:27.200 --> 0:07:31.720 the out the door meta. All right, bloombergs Alex Barnka, 0:07:31.760 --> 0:07:34.080 thank you so much for that update. We'll continue to 0:07:34.080 --> 0:07:38.280 watch your reporting on this meantime. Earlier today, President Biden 0:07:38.360 --> 0:07:43.680 said Elon Musk's ties to other countries are worth looking at, 0:07:44.360 --> 0:07:47.360 though he declined to say if he felt Elon Musk 0:07:47.360 --> 0:07:50.720 has been doing anything inappropriate. Uh, We're gonna talk a 0:07:50.760 --> 0:07:53.320 little bit more about Twitter later in the show. Reid 0:07:53.360 --> 0:07:56.720 Hoffman will be joining us to talk about that and 0:07:57.040 --> 0:08:09.480 much more with a wave of tech layoffs, including now 0:08:09.640 --> 0:08:12.160 met up. What does this all mean for the Silicon 0:08:12.240 --> 0:08:15.640 Valley ecosystems, from startups to the world of venture capital. 0:08:16.040 --> 0:08:17.920 I want to bring in Gary Tan now for more 0:08:17.960 --> 0:08:20.240 on this. He is the founder of Initialized Capital and 0:08:20.280 --> 0:08:24.880 the incoming chief of the very popular startup accelerator y Combinator. Gary, 0:08:24.880 --> 0:08:26.600 thank you so much for joining us. As you know, 0:08:26.680 --> 0:08:29.080 it's a special week for me and for this show, 0:08:29.560 --> 0:08:32.920 and you know, so much has changed since I started 0:08:32.920 --> 0:08:36.240 covering Silicon valid I'm just wondering where you were twelve 0:08:36.320 --> 0:08:39.800 years ago when Bloomberg Tech launched, Oh gus, I was 0:08:39.840 --> 0:08:43.880 a software engineer working on my startup, Posterous, which was 0:08:43.880 --> 0:08:46.280 a y C company. I hadn't even become a partner 0:08:46.720 --> 0:08:48.920 at y C yet, and two thousand and eight we 0:08:48.960 --> 0:08:53.760 actually closed our seven hundred thousand dollars seed round the 0:08:53.840 --> 0:08:57.000 day Lehman died. So, you know, for people who are 0:08:57.000 --> 0:08:58.840 watching right now who might be affected, you know, I 0:08:58.840 --> 0:09:03.120 really do feel for you because you know, this type 0:09:03.160 --> 0:09:05.880 of day, it's such a shock. Um. But you know, 0:09:05.920 --> 0:09:09.319 also two eight two tho nine was such an incredible 0:09:09.360 --> 0:09:13.480 time to start companies, and you know that you have 0:09:13.520 --> 0:09:18.320 to take the good with the bad. Eleven thousand people 0:09:19.080 --> 0:09:22.800 laid off at Meta alone today. How bad does this 0:09:22.920 --> 0:09:27.560 get in your view? You know, I really feel for 0:09:27.600 --> 0:09:30.880 those families. I feel for every single person who is 0:09:30.920 --> 0:09:34.720 going through you know, that type, that magnitude of layoff. UM. 0:09:35.280 --> 0:09:37.960 But one of the things that I'm sort of excited 0:09:38.000 --> 0:09:40.000 about that, you know, there there is a silver lining 0:09:40.080 --> 0:09:44.200 in that these are really smart, really dedicated people. You know, 0:09:44.360 --> 0:09:49.360 Facebook has an incredible hiring bar, and I think about 0:09:49.400 --> 0:09:52.480 a lot of human capital, a lot of human heart 0:09:52.760 --> 0:09:56.360 and minds that now can be applied to Frankly, all 0:09:56.400 --> 0:09:59.160 of these other problems that you know are sort of 0:09:59.200 --> 0:10:04.199 facing societ idea and humanity UM. And I'm excited about 0:10:04.240 --> 0:10:08.640 what gets unlocked here because you know, for the for practically, 0:10:08.920 --> 0:10:11.559 I don't know, three five years, the number one thing 0:10:11.640 --> 0:10:14.319 that frankly startups really faced was how do we find 0:10:14.360 --> 0:10:17.560 people who are as smart as you know, a Facebook 0:10:17.600 --> 0:10:20.840 engineer or almost any of those roles. And so, you know, 0:10:21.280 --> 0:10:23.400 on the one hand, this is a sad day. On 0:10:23.440 --> 0:10:25.400 the other hand, you know, I'm kind of excited to 0:10:25.440 --> 0:10:27.520 see where all of these people are going to go. 0:10:27.679 --> 0:10:29.520 And some of those people are going to start new 0:10:29.559 --> 0:10:33.839 companies that actually become the next Facebook, the next Meta, 0:10:34.240 --> 0:10:36.920 and uh, you know, I think that that is something 0:10:36.960 --> 0:10:41.080 that I'm excited to see. There are some people saying 0:10:41.720 --> 0:10:44.360 Silicon Valley is turning into a waste land at San 0:10:44.400 --> 0:10:47.560 Francisco is over, and they were saying this, you know, 0:10:47.640 --> 0:10:49.839 before these layoffs even started to happen as a result 0:10:49.880 --> 0:10:53.080 of the changes from the pandemic alone. I know you're 0:10:53.160 --> 0:10:56.720 very steeped in the culture of San Francisco, and I'm 0:10:56.760 --> 0:11:00.400 guessing you disagree, But what do you think? Yeah, I 0:11:00.440 --> 0:11:03.840 think San Francisco from time immemorial was a place for 0:11:04.040 --> 0:11:07.240 dreamers and doers to come and try to you know, 0:11:07.559 --> 0:11:09.760 try their hand at their own future. But you know, 0:11:09.760 --> 0:11:13.480 there's something very special about technology in San Francisco, which 0:11:13.559 --> 0:11:17.360 is we've you know, brought together some of the smartest 0:11:17.360 --> 0:11:20.120 minds and then they go on to create products and 0:11:20.120 --> 0:11:23.400 services for a billion people. And um, you know, we 0:11:23.480 --> 0:11:26.400 might have gone through are a big wave over the 0:11:26.480 --> 0:11:28.920 last decade, but there's a new wave. You know, I 0:11:29.080 --> 0:11:32.120 keep meeting new you know, twenty five year olds, thirty 0:11:32.200 --> 0:11:34.560 year olds like you know, people who are sort of 0:11:34.600 --> 0:11:37.800 just starting their career um and some of them might 0:11:37.840 --> 0:11:40.400 be sort of leaving some of these tech giants. And 0:11:40.559 --> 0:11:44.400 there we're realizing that, hey, we can start a company, 0:11:44.760 --> 0:11:46.760 we can create a product or service, and it comes 0:11:46.760 --> 0:11:50.920 from actually solving real problems for customers. Right and so, 0:11:51.080 --> 0:11:54.320 you know, whether it's crypto or you know, sass software, 0:11:54.440 --> 0:11:57.040 sort of across the board. You know, even though this 0:11:57.120 --> 0:12:00.000 is a time of sort of destruction, there is creation 0:12:00.080 --> 0:12:02.679 and that is growing out of you know, sort of 0:12:02.760 --> 0:12:05.920 the ground from you know, the wreckage of some of 0:12:05.920 --> 0:12:10.080 these uh, you know, quite regrettable situations. Right now, you know, 0:12:10.160 --> 0:12:13.199 the seed uh is in there and it's growing. And 0:12:13.280 --> 0:12:15.760 we were we were going to hear about the next 0:12:16.360 --> 0:12:20.040 you know, meta, the next billion dollar or decacorn company 0:12:20.080 --> 0:12:22.760 that is sort of starting exactly like you know, a 0:12:22.800 --> 0:12:26.200 startup like my startup started, uh the day Lehman died. 0:12:28.160 --> 0:12:31.480 So what does this actually mean for early companies right 0:12:31.480 --> 0:12:35.400 now and for investors like yourself at the earliest stages. 0:12:35.480 --> 0:12:37.960 How do you make decisions about where to put your 0:12:37.960 --> 0:12:41.040 money and whether to put money in anything at all, 0:12:41.080 --> 0:12:44.200 given the way the economy is going. Yeah, I think 0:12:44.400 --> 0:12:47.920 the very special thing about early stage is that you know, 0:12:47.960 --> 0:12:50.760 you are starting from small numbers. You know, a startup. 0:12:50.800 --> 0:12:53.840 As Paul Graham wrote in his famous essay, a startup 0:12:53.880 --> 0:12:58.439 equals growth. And when you're small, you can outrun any 0:12:58.640 --> 0:13:02.679 macro situation. You know, the macro situation might be the 0:13:02.720 --> 0:13:06.680 heights of one when we were starting to tell people, hey, 0:13:06.960 --> 0:13:10.480 you know, be where there might be, you know, recession ahead. 0:13:10.480 --> 0:13:12.720 And you know that was something that we started saying 0:13:12.760 --> 0:13:15.520 towards the end of last year, you know. Or we 0:13:15.600 --> 0:13:17.400 might be all the way down on a day like 0:13:17.440 --> 0:13:19.760 this where I think all of us are sort of 0:13:19.800 --> 0:13:21.960 trying to figure out, like what does this mean and 0:13:22.120 --> 0:13:25.120 how much lower does it go? But in that in 0:13:25.200 --> 0:13:29.480 that time or this time, there is the ability for 0:13:29.559 --> 0:13:32.720 a small team to build a product or service and 0:13:32.800 --> 0:13:36.280 grow to x four x ten x per year. And 0:13:36.320 --> 0:13:38.920 so if the mac even if the macro situation goes 0:13:39.000 --> 0:13:44.440 down from here, like if an individual company can show 0:13:44.480 --> 0:13:46.960 that it can grow three x, five x ten x, 0:13:47.280 --> 0:13:49.840 you know, a hundred x over a hundred x over 0:13:49.920 --> 0:13:53.240 several years like that, that will outrun you know, the worst, 0:13:53.880 --> 0:13:56.480 even a great depression if you can do it. And 0:13:56.559 --> 0:13:58.960 the thing is this is impelled by technology. You know, 0:13:59.000 --> 0:14:02.680 their new problem MS and you know, things like Generative 0:14:02.720 --> 0:14:06.640 AI right now are just blowing people's minds, and you know, 0:14:06.679 --> 0:14:11.280 I think that they're the fruit of the next great companies. 0:14:11.559 --> 0:14:13.800 It really comes from that technology and from the builders 0:14:13.800 --> 0:14:18.760 who are being unlocked right now. Well, speaking of building 0:14:18.840 --> 0:14:22.880 and disrupting, Elon Musk taking over Twitter, you're a Twitter 0:14:22.960 --> 0:14:26.280 power user. I'm curious what you think of what he's 0:14:26.320 --> 0:14:28.480 done so far and what the plan seems to be, 0:14:28.520 --> 0:14:31.200 and maybe if as a power user, you have any 0:14:31.200 --> 0:14:35.320 advice for Elon Musk. That's a great question. I mean, 0:14:35.440 --> 0:14:38.360 I love Twitter, and you know, I think the number 0:14:38.400 --> 0:14:40.960 one thing is I'm also feeling for my friends over there, 0:14:40.960 --> 0:14:43.120 who are you know, sort of sleeping under their desks, 0:14:43.680 --> 0:14:46.200 you know, working through it. So all I can say is, 0:14:46.400 --> 0:14:49.600 you know, take care of your people, and you know, 0:14:49.680 --> 0:14:53.480 take care of us as users. And you know, I 0:14:53.560 --> 0:14:57.040 know that he's uh much maligned by certain people right now, 0:14:57.080 --> 0:14:59.360 but you know, I'm rooting for them. I'm rooting for 0:14:59.360 --> 0:15:04.200 Twitter as a come company and as a user. I've 0:15:04.240 --> 0:15:07.160 spoke with Representative Rocanna earlier. You're going to hear part 0:15:07.160 --> 0:15:09.600 of that conversation in a moment, but he called for 0:15:09.680 --> 0:15:13.720 more regulation of big tech, which may be more unlikely 0:15:14.400 --> 0:15:17.200 depending on how the votes shake out. I know you're 0:15:17.240 --> 0:15:19.080 heading to the White House next week with one of 0:15:19.120 --> 0:15:22.240 your portfolio companies. What do you think the role of 0:15:22.400 --> 0:15:27.200 Washington should be in the next generation of tech innovation 0:15:27.200 --> 0:15:31.120 and perhaps not repeating some of the mistakes or lack 0:15:31.200 --> 0:15:34.360 of action that we've seen in the past. Yeah, so 0:15:34.400 --> 0:15:36.760 I'm headed to d C with Beeper. It's one of 0:15:36.760 --> 0:15:39.840 our initialized companies that's creating a universal chat app, and 0:15:40.080 --> 0:15:41.680 one of the things they really want to do is 0:15:41.920 --> 0:15:45.400 sort of take away the green bubble blue bubble problem 0:15:45.480 --> 0:15:47.240 and that you know, that's just kind of a silly 0:15:47.240 --> 0:15:49.760 example in one sense, in one sense, but it is 0:15:49.800 --> 0:15:53.400 actually uh emblematic of a much bigger problem. And those 0:15:53.440 --> 0:15:55.800 are things that we hope to solve with the Innovation 0:15:55.800 --> 0:15:58.760 and Choice Act Online and the Open App Markets Act, 0:15:59.160 --> 0:16:02.720 which frankly, we really hope Senators Humor will actually bring 0:16:02.720 --> 0:16:04.800 to the floor. You know, he's claimed that the votes 0:16:04.800 --> 0:16:06.920 aren't there, but we're pretty sure there are more than 0:16:07.040 --> 0:16:09.760 enough votes. And you know, for me, when I look 0:16:09.800 --> 0:16:13.400 at early stage, it's really about making sure there's a 0:16:13.440 --> 0:16:16.760 fair and level playing field, and it's really clear to 0:16:16.800 --> 0:16:19.080 me that we don't have that right now. Apple and 0:16:19.120 --> 0:16:22.240 Google certainly mean well, but they're still looking out for 0:16:22.320 --> 0:16:25.600 their main interests, and we want choice and freedom and 0:16:25.640 --> 0:16:29.000 we need to protect the ability of founders, you know, 0:16:29.080 --> 0:16:31.600 perhaps in the garage in San Francisco and Mountain View, 0:16:31.600 --> 0:16:34.200 wherever they are in the world. Even we want them 0:16:34.200 --> 0:16:37.080 to be able to create something that touches a billion people. 0:16:37.480 --> 0:16:40.200 And you know, that's really what we want with these 0:16:40.240 --> 0:16:44.320 two bills. We want a fair and open dialogue and 0:16:44.360 --> 0:16:49.480 a way for consumers to actually win. I have a 0:16:49.480 --> 0:16:53.120 minute left, Gary, and I'd love to get your advice now. 0:16:53.240 --> 0:16:55.520 For the folks who are let go today, what would 0:16:55.560 --> 0:16:59.400 you say to them? I mean, go home and hug 0:16:59.400 --> 0:17:02.160 your kids, you know, if you got them. Um. But 0:17:02.320 --> 0:17:05.520 at the same time, you know, maybe if you've been 0:17:05.520 --> 0:17:09.720 playing it safe like this whole time in your career, um, 0:17:09.760 --> 0:17:12.320 it might be time to go out and find you know, 0:17:12.400 --> 0:17:16.879 some frontier tech, something that you're interested in, and um, 0:17:16.920 --> 0:17:20.160 you know, research the startups, research what you think might 0:17:20.240 --> 0:17:22.639 change the world. And you know you don't have to, 0:17:22.960 --> 0:17:25.040 you know, take a job offer, but interviewed a bunch 0:17:25.119 --> 0:17:27.480 of them and figure out, you know, is there a 0:17:27.520 --> 0:17:30.919 fit is this place right for me? And um, you know, 0:17:31.000 --> 0:17:34.760 building equity and helping build new things that have never 0:17:34.800 --> 0:17:38.080 existed before. It is the most exhilarating experience that I've 0:17:38.080 --> 0:17:41.280 ever had professionally. UM, and I just really hope you know, 0:17:41.840 --> 0:17:45.879 I think that it's just a hard moment right now. Um, 0:17:45.920 --> 0:17:48.400 and you know, the future is a little bit uncertain 0:17:48.440 --> 0:17:50.399 in terms of you know, what might whether there's a 0:17:50.440 --> 0:17:53.440 recession or not. You know, the macro picture doesn't look 0:17:53.480 --> 0:17:56.639 that great. But I just want people to remember that 0:17:56.640 --> 0:18:00.119 that there new technology is still being built and are 0:18:00.200 --> 0:18:03.320 companies big and small that are still you know, fighting 0:18:03.320 --> 0:18:06.680 that fight, and uh, you know they need your help. 0:18:07.000 --> 0:18:10.480 So you know, dust yourself off, and you know we're 0:18:10.520 --> 0:18:15.200 going to go build the future. Build indeed, Gary Tan, 0:18:15.440 --> 0:18:18.760 thank you so much for joining us and sharing all 0:18:18.800 --> 0:18:20.359 of that on a on a hard day. And of 0:18:20.400 --> 0:18:22.959 course we're also excited about your next chapter two, founder 0:18:23.000 --> 0:18:25.920 and partner at Initialized Capital, and of course incoming head 0:18:26.200 --> 0:18:31.639 of y Combinator, thanks for having me coming up. Thank 0:18:31.640 --> 0:18:36.080 you my discussion with California Representative Rocana about the outcome 0:18:36.200 --> 0:18:40.040 of the mid terms and Elon Musk his thoughts next 0:18:40.240 --> 0:18:57.919 this is Bloomberg back to the mid terms and what 0:18:58.119 --> 0:18:59.920 impact it will have on the future of big tech 0:19:00.040 --> 0:19:04.240 regulation in Congress. Representative Rocana was with us earlier. Take 0:19:04.240 --> 0:19:07.200 a listen. First, it's just on a human level. I'm 0:19:07.440 --> 0:19:10.280 sad and concerned about the layoffs. I as you know, 0:19:10.440 --> 0:19:12.920 represent the district of the Bay Area and so many 0:19:12.960 --> 0:19:16.760 of those people and their families are in my district. 0:19:17.480 --> 0:19:22.680 But more broadly, we're gonna need more investment in uh, 0:19:22.880 --> 0:19:29.240 content moderation that respects the First Amendment, but that is 0:19:29.400 --> 0:19:33.080 not allowing speech that incites violence or that is spreading 0:19:33.400 --> 0:19:37.720 blatant conspiracies and lies just to get more attention. And 0:19:38.080 --> 0:19:42.000 that's something that Congress needs to regulate. We haven't uh, 0:19:42.040 --> 0:19:45.639 and we need to regulate on privacy. But otherwise those 0:19:45.840 --> 0:19:51.000 uh social media platforms are spewing often uh, real poison 0:19:51.040 --> 0:19:54.760 into our democratic discourse. You've got a new label on 0:19:54.800 --> 0:19:58.880 your Twitter profile identifying you as a US representative. Some 0:19:58.920 --> 0:20:02.879 accounts are already be being labeled official. What's your opinion 0:20:03.000 --> 0:20:05.400 on the approach Elon Musk is taking a Twitter so 0:20:05.440 --> 0:20:09.320 far and the difference between the right to free speech 0:20:09.600 --> 0:20:13.480 and the right to amplification of free speech. Well, look, 0:20:13.520 --> 0:20:16.280 I know Elon Musk, and I will give him the 0:20:16.280 --> 0:20:19.520 same advice privately as I do publicly, which is he 0:20:19.520 --> 0:20:22.960 shouldn't be running Twitter, just like Jeff Bezos doesn't run 0:20:23.000 --> 0:20:28.240 the Washington Post, and people who own CNN don't run CNN. Uh, 0:20:28.240 --> 0:20:32.119 and Michael Bloomberg doesn't sit there running Bloomberg Television. I 0:20:32.160 --> 0:20:36.080 think he should appoint an independent board of people who 0:20:36.080 --> 0:20:38.959 will make the day to day decisions. Some of the 0:20:39.000 --> 0:20:41.920 ideas of getting rid of bots, those are good ideas. 0:20:41.920 --> 0:20:43.960 I mean, the bots are responsible for some of the 0:20:44.000 --> 0:20:48.520 worst algorithmic amplification. But I don't think Ellen wants to 0:20:48.520 --> 0:20:51.040 be sitting there making a decision about which tweet should 0:20:51.040 --> 0:20:55.119 be on and which tweet should be off. Full interview 0:20:55.119 --> 0:20:57.560 with representative Kanna at Bloomberg dot com and of course 0:20:57.600 --> 0:20:59.520 we'd like to know. Mike Bloomberg is the founder and 0:20:59.560 --> 0:21:02.320 majority owner of Bloomberg LP and the parent company of 0:21:02.359 --> 0:21:14.879 Bloomberg News. Welcome back to Bloomberg Technology. I'm Emily Chang 0:21:14.920 --> 0:21:19.000 in San Francisco. Computers are now creating never before seen 0:21:19.040 --> 0:21:22.840 the images in seconds, think apps like Dolly or Crayon. 0:21:23.359 --> 0:21:27.880 It's called generative artificial intelligence and Silicon Valley investors are 0:21:27.920 --> 0:21:31.560 betting big on the future of this emerging technology. Reid 0:21:31.600 --> 0:21:33.560 Hoffman is one of them. The Lincoln co founder and 0:21:33.560 --> 0:21:35.919 partner at Greylock Partners recently sold a collection of his 0:21:35.920 --> 0:21:38.200 own AI art for charity, and he joins me now 0:21:38.240 --> 0:21:39.960 and read, thank you so much for joining us. You've 0:21:40.040 --> 0:21:42.440 been such a huge part of this show for the 0:21:42.520 --> 0:21:46.280 last twelve years, and for that I am very grateful, Um. 0:21:46.320 --> 0:21:49.040 And I'm just so curious to hear your thoughts on 0:21:49.600 --> 0:21:51.879 what is going to find to define the next decade 0:21:51.880 --> 0:21:55.000 of innovation and technology. If it was networks for the 0:21:55.080 --> 0:21:59.560 last decade, is it AI for the next it is 0:21:59.760 --> 0:22:02.440 I think actually is as hot as it seems this year, 0:22:02.520 --> 0:22:05.240 even next year it's even gonna be hotter. Um. I 0:22:05.240 --> 0:22:10.360 think the question about having essentially the equivalent of professional 0:22:10.440 --> 0:22:14.600 aid like Microsoft product called Copilot for engineers, I think 0:22:14.640 --> 0:22:19.159 that will be within five years present for every profession. 0:22:19.440 --> 0:22:23.320 It'll be for journalists, for dcs, you know, for uh, 0:22:23.359 --> 0:22:26.679 you know, journals like you know, just doctors, lawyers, the 0:22:26.720 --> 0:22:29.120 whole thing and those tools will start and they will 0:22:29.119 --> 0:22:31.639 be central to how we we've been doing. In Senate, 0:22:31.640 --> 0:22:34.120 Greylock We've been investing this for years because we've seen 0:22:34.119 --> 0:22:36.200 this coming, um you know. So we have adept in 0:22:36.280 --> 0:22:38.920 Crest and Snorkel, and of course I co founded Inflection 0:22:39.480 --> 0:22:42.000 with Mustafa. But I think this will be a trend 0:22:42.000 --> 0:22:46.560 of human amplification through these artificial intelligence technologies which we've 0:22:46.600 --> 0:22:51.960 never seen its like before in human history. The question 0:22:52.040 --> 0:22:55.000 is how do we maintain the human So, for example, 0:22:55.119 --> 0:22:59.760