WEBVTT - Masimo CEO on Apple Patent Fight, Blue Origin Returns to Space 0:00:01.639 --> 0:00:05.320 From Marhart where Innovation of Money and Power Collie in 0:00:05.440 --> 0:00:10.360 Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.400 --> 0:00:11.320 and Ed Ludlow. 0:00:25.120 --> 0:00:27.880 I'm Caroline Heine Bluemberg's world headquarters in New York. Ed Ludlow, 0:00:27.880 --> 0:00:30.760 He's off today. This is Bloomberg Technology coming up. Apple 0:00:30.920 --> 0:00:33.120 races to tweak it smart watch software a head of 0:00:33.120 --> 0:00:36.600 a US ban on its seventeen billion dollar business. Details ahead, 0:00:36.640 --> 0:00:40.120 and a conversation with the CEO of Massimo, which argues 0:00:40.159 --> 0:00:44.240 the device infringes its patterns. Meanwhile, Jeff Bezos's Blue Origin 0:00:44.320 --> 0:00:46.400 Rocket takes to the sky for the first time in 0:00:46.440 --> 0:00:48.159 fifteen months, paving the way for people to. 0:00:48.080 --> 0:00:51.240 Stop flying on New Shepherd again. Full coverage ahead. 0:00:51.520 --> 0:00:54.600 Plus we'll sit down with technology entrepreneur and investor Massello 0:00:54.680 --> 0:00:57.760 Clary as he returns to Soft Facts Open Opportunity Fund 0:00:57.800 --> 0:01:01.240 to support diverse founders. That comma say so much more 0:01:01.280 --> 0:01:03.400 coming up this how at first as a wait check 0:01:03.400 --> 0:01:05.479 on these markets as we've just been hearing from Alex 0:01:05.520 --> 0:01:07.920 and Guy Nazak is on quite a role. Then as 0:01:07.959 --> 0:01:10.800 that one hundred once again hitting that intra day record high, 0:01:10.800 --> 0:01:12.240 we're at up to tenths of a percent. 0:01:12.280 --> 0:01:13.640 The tenure yields actually pulling back. 0:01:13.640 --> 0:01:16.319 Looks still optimism there that the Federal Reserve is done 0:01:16.360 --> 0:01:18.039 on its rate height and actually going to be seeing 0:01:18.080 --> 0:01:21.319 some rate cuts as soon as maybe even March next year, 0:01:21.560 --> 0:01:24.240 some voices being put towards that. Today we look at 0:01:24.280 --> 0:01:26.080 New York crewed up more than two percent. This again 0:01:26.120 --> 0:01:28.560 a geopolitical tension on issue with the Red Sea and 0:01:28.600 --> 0:01:30.920 WORRI is that basically some of this traveling of oil 0:01:31.280 --> 0:01:33.240 is going to take that much longer if they are 0:01:33.240 --> 0:01:35.120 going to have to bypass that particular route. We look 0:01:35.120 --> 0:01:37.479 at what's happening in the world of crypto, because dollar's 0:01:37.480 --> 0:01:39.360 been falling away, but so too has bitcoin. We're down 0:01:39.400 --> 0:01:41.559 by some sevent tens percent, just still at that forty 0:01:41.600 --> 0:01:42.560 two three. 0:01:42.240 --> 0:01:43.080 Hundred dollars level. 0:01:43.360 --> 0:01:46.240 We'll have a dig in conversation on ultimately what the 0:01:46.240 --> 0:01:48.200 ETF is lined up to. Will we get a spot 0:01:48.240 --> 0:01:52.640 bitcoin ETF as soon as January as sanctioned by the seccene. Meanwhile, 0:01:52.680 --> 0:01:55.920 let's turn back to that Blue Origin return to flight 0:01:56.040 --> 0:01:59.040 after fifteen long months joining US now Space Capital founder 0:01:59.080 --> 0:02:03.120 and managing partnership. Anderson also the author of the space economy, 0:02:03.320 --> 0:02:05.600 and while the space economy got the return of a 0:02:05.680 --> 0:02:08.880 key player, how important was this to go as well 0:02:08.919 --> 0:02:09.839 as it seemingly did. 0:02:11.360 --> 0:02:13.519 Yeah, I think, I mean it seemed to go flawlessly, 0:02:13.560 --> 0:02:16.520 and it's great to see. You know, it's after fifteen months. 0:02:16.560 --> 0:02:20.800 That's a pretty extended period for any vehicle to be offline. 0:02:21.560 --> 0:02:22.920 I think that a lot of that has to do with, 0:02:23.080 --> 0:02:25.480 you know, there's some some some regulatory checks that need 0:02:25.480 --> 0:02:27.400 to happen before a vehicle. 0:02:27.080 --> 0:02:28.440 Like this comes back online. 0:02:28.680 --> 0:02:31.800 But I also think that Blue Origin sort of in 0:02:31.880 --> 0:02:34.880 their culture and DNA since the beginning, it's very methodical 0:02:35.040 --> 0:02:36.560 and very slow, and so. 0:02:36.600 --> 0:02:38.400 They want to get everything right. 0:02:38.520 --> 0:02:40.959 Like slow as smooth and smooth as fast has been 0:02:41.280 --> 0:02:43.880 their model, and they used to actually stamp tortoises on 0:02:44.440 --> 0:02:47.520 the vehicle after successful flights. And so it's great to 0:02:47.520 --> 0:02:51.120 see it coming, you know, coming back on online. But 0:02:51.200 --> 0:02:53.880 I think you know, the company has big ambition, they're 0:02:53.880 --> 0:02:55.280 going to need to step it up, and so you know, 0:02:55.280 --> 0:02:57.200 they're making some moves to sort of help. 0:02:56.960 --> 0:02:57.600 Make that happen. 0:02:57.639 --> 0:02:59.639 And let's talk about those moves, because not only is 0:02:59.639 --> 0:03:02.560 there a point of the launch the twenty fourth as 0:03:02.600 --> 0:03:06.080 it was reusable rocket doing well, but ultimately a changing 0:03:06.080 --> 0:03:08.040 of the guard. Dave Limp goes from Amazon to become 0:03:08.240 --> 0:03:10.480 the helm of Blue Origin, and we hear from Jeff 0:03:10.480 --> 0:03:13.040 Bezos himself on certain podcasts saying we need to be 0:03:13.120 --> 0:03:16.120 more decisive. How are you going to see that become 0:03:16.160 --> 0:03:16.720 a reality? 0:03:18.400 --> 0:03:22.239 Yeah, it's great to see, you know, and I mean, look, 0:03:22.280 --> 0:03:25.880 you've got so interesting to see the juxtaposition between SpaceX 0:03:25.919 --> 0:03:28.000 and Blue Origin. Both of the companies were founded in 0:03:28.040 --> 0:03:31.079 two thousand and two, both of them have similar ambitions 0:03:31.080 --> 0:03:35.640 and actually similar funding. Bezos continues to invest heavily into 0:03:35.640 --> 0:03:38.520 Blue Origin, with another couple of billion dollars this year, 0:03:38.800 --> 0:03:41.360 which is brings US total investment into the company we 0:03:41.480 --> 0:03:44.680 estimate to be somewhere around ten billion dollars, which is 0:03:44.720 --> 0:03:47.080 actually slightly more than what SpaceX has raised. But if 0:03:47.120 --> 0:03:49.160 you look at the two companies and what they've achieved, 0:03:49.280 --> 0:03:53.600 you know, SpaceX is dominates the launch market. They're launching 0:03:53.640 --> 0:03:57.240 almost one hundred times this year. They're taking NASA astronauts 0:03:57.280 --> 0:03:59.480 to the Space station, delivering a cargo to the space station, 0:04:00.280 --> 0:04:03.920 launching high profile classified missions for the Department of Defense, 0:04:04.400 --> 0:04:08.800 and they're you know, in Pole position to land nas 0:04:08.880 --> 0:04:12.560 astronauts on the Moon. Meanwhile, Blue Origin has new Shepherd flying, 0:04:12.600 --> 0:04:15.440 and they have big aspirations and a lot of really 0:04:15.480 --> 0:04:18.040 interesting things that are in the works. But you know, 0:04:19.080 --> 0:04:20.800 twenty years later, you'd like to see some of those 0:04:20.800 --> 0:04:23.480 things start to come online. Fields like Bezos is very 0:04:23.480 --> 0:04:26.840 confident that their larger orbital vehicle is going to come 0:04:26.839 --> 0:04:29.200 online next year. So next year should be pretty big 0:04:29.240 --> 0:04:30.760 for the company to that. 0:04:30.800 --> 0:04:32.440 And I mean we remind of you as R and 0:04:32.520 --> 0:04:35.880 D through Space Angels, an investor in space X, and 0:04:36.320 --> 0:04:38.480 ultimately the business models are different, and there has been 0:04:38.480 --> 0:04:40.880 more of a focus on space tourism thus far coming 0:04:40.920 --> 0:04:41.920 from Blue Origin. 0:04:42.360 --> 0:04:44.400 But is there enough market share? 0:04:44.480 --> 0:04:47.160 Is there enough reward for this amount of players within 0:04:47.760 --> 0:04:49.279 the space de pardon upun. 0:04:50.720 --> 0:04:55.640 Oh sure? I mean, look, the world runs on space technology. 0:04:56.400 --> 0:04:59.600 GPS is the most visceral, sort of most personal example 0:04:59.640 --> 0:05:02.839 that you that you can give some most successful space 0:05:02.880 --> 0:05:05.840 technology and existence. It's generated trillions of dollars in economic 0:05:05.920 --> 0:05:08.200 value and some of the largest venture outcomes we've ever seen. 0:05:08.640 --> 0:05:10.760 So the space economy and the opportunity here is much 0:05:10.839 --> 0:05:14.360 larger than just rockets and satellite hardware. But with you know, 0:05:14.440 --> 0:05:16.760 with the launch today, and that's what we're talking about 0:05:16.800 --> 0:05:20.200 in launch SpaceX makes it look really easy that launch 0:05:20.200 --> 0:05:21.560 today was flawless, and it makes it. 0:05:21.480 --> 0:05:22.279 Look pretty easy. 0:05:22.320 --> 0:05:25.159 But of the one hundred plus launch companies that have 0:05:25.320 --> 0:05:27.800 raised twenty seven billion dollars over the last ten years, 0:05:27.839 --> 0:05:33.360 there are only three that are operational SpaceX, rocket Lab 0:05:33.839 --> 0:05:37.840 and New Shepherd if you count it as a suborbital vehicle, 0:05:37.920 --> 0:05:41.320 so there's actually only only two. So we'll see, you know, 0:05:41.360 --> 0:05:45.320 if Ula, which is using Blue Origins engines, comes online 0:05:45.320 --> 0:05:47.480 early next year. We'll see if New Blend comes online 0:05:47.880 --> 0:05:52.640 next year. But we could use some competition here. Competition 0:05:52.760 --> 0:05:58.800 spurs lower costs and more entrance and more innovation, and 0:05:59.120 --> 0:06:01.119 you know, with only a couple of privately funded players, 0:06:01.160 --> 0:06:02.200 we could definitely use some more. 0:06:02.520 --> 0:06:05.640 Is the venture capital there to back such new competition? 0:06:06.040 --> 0:06:08.600 Is it an international center of competition that we need 0:06:08.640 --> 0:06:09.120 to see? 0:06:10.400 --> 0:06:12.440 Well, so, we've been operating in space for decades, but 0:06:12.480 --> 0:06:15.080 it's only recently become a category for investment. Really on 0:06:15.120 --> 0:06:19.640 the heels of SpaceX, going from basically no private market activity, 0:06:19.680 --> 0:06:23.640 investment or entrepreneurial activity, you know, ten years ago, on 0:06:23.680 --> 0:06:25.720 the heels of SpaceX. We've now seen two hundred and 0:06:25.720 --> 0:06:28.800 eighty billion dollars invests to the eighteen hundred unique space 0:06:28.839 --> 0:06:32.560 companies over the last ten years. So there is a 0:06:32.600 --> 0:06:37.120 lot more activity happening today, and most of that is 0:06:37.160 --> 0:06:41.760 coming from venture capital. So three quarters of all of 0:06:41.800 --> 0:06:43.760 the rounds that have gone in that make up that 0:06:43.760 --> 0:06:46.080 two hundred eight billion are from venture capital and two 0:06:46.080 --> 0:06:48.279 thirds of the capitol it's coming from venture capital. So 0:06:48.920 --> 0:06:51.239 and a lot of that action is happening in the US, 0:06:51.640 --> 0:06:54.440 a significant portion of it, but this is an international play. 0:06:54.600 --> 0:06:58.640 Geopolitics is playing into this in a major way. Governments 0:06:58.680 --> 0:07:01.480 around the world are starting to into the importance of 0:07:01.520 --> 0:07:05.520 space technology and they are prioritizing its protection, knowing that 0:07:05.560 --> 0:07:10.960 it gives us positioning, geospatial intelligence and intelligence about the 0:07:10.960 --> 0:07:14.840 movement of goods and activity on the Earth's surface. And 0:07:14.920 --> 0:07:18.480 also it's connecting us now through satellite connectivity, through initiatives 0:07:18.480 --> 0:07:22.400 like Starlink, helping to keep the Ukrainians connected, for example, 0:07:22.880 --> 0:07:25.400 but connecting the remote parts of the planet as well. 0:07:25.480 --> 0:07:28.680 So this is critical national infrastructure, not just for the 0:07:28.760 --> 0:07:32.440 US but for many countries, and we're seeing increased activity 0:07:32.480 --> 0:07:33.880 across the globe. 0:07:33.560 --> 0:07:36.000 Whether it comes from Jeff Bezos, whether it comes from Amazon, 0:07:36.240 --> 0:07:39.120 Project Kaiper, whether it comes from SpaceX, and indeed more 0:07:39.160 --> 0:07:41.440 broadly abroad as well, Chad Anderson is so good to 0:07:41.440 --> 0:07:43.280 catch up with you. Thank you so much as Space 0:07:43.320 --> 0:07:46.720 Capital and Space Angels. Meanwhile, let's shift gears a little 0:07:46.720 --> 0:07:48.880 bit and look at Alphabet right now, because it's going 0:07:48.960 --> 0:07:51.280 to have to pay seven hundred million dollars and alter 0:07:51.360 --> 0:07:53.960 its Google Play policies to settle claims that the app 0:07:54.000 --> 0:07:57.720 store unlawfully dominates the Android mobile applications market USA. Say 0:07:57.720 --> 0:08:00.520 the Blue moslea Ninland joins us more on this case. 0:08:00.560 --> 0:08:03.440 And this was Attorney's General particularly putting forward on. 0:08:03.480 --> 0:08:05.760 This behalf of the consumer, millions of them. 0:08:06.080 --> 0:08:08.640 Ultimately, what are the policies that are going to have 0:08:08.680 --> 0:08:09.040 to change? 0:08:09.040 --> 0:08:09.360 Hearlier. 0:08:10.840 --> 0:08:13.080 Yeah, So this was a case brought by thirty six 0:08:13.200 --> 0:08:16.480 state attorneys general, but the settlement was signed by off 0:08:16.520 --> 0:08:19.080 fifty so this is going to apply across the country. 0:08:19.360 --> 0:08:21.360 So Google agreed to pay some. 0:08:21.360 --> 0:08:24.840 Money, but the bigger changes are ones to its play store. 0:08:24.960 --> 0:08:29.680 So now it's not going to require companies like Samsung 0:08:29.720 --> 0:08:32.440 and Motorola who make its phones, to have the play 0:08:32.480 --> 0:08:36.360 store be exclusively and the only app store available on phones. 0:08:36.720 --> 0:08:41.480 It's also going to allow developers to use alternative payment systems, 0:08:41.559 --> 0:08:43.920 so instead of just using Google Player on the phone, 0:08:44.080 --> 0:08:46.200 you might now be able to start using things like 0:08:46.280 --> 0:08:51.800 Square or Venmo or PayPal. And they also will be 0:08:51.800 --> 0:08:55.240 allowed to tell consumers a little bit more about whether 0:08:55.280 --> 0:08:58.360 they can get cheaper options elsewhere. So for example, they 0:08:58.400 --> 0:09:00.880 could say, hey, you know, if you agree to sign 0:09:00.920 --> 0:09:03.679 up for our subscription online instead of hearing through the app, 0:09:04.040 --> 0:09:06.679 will give you a discount, a three dollars discount, And 0:09:06.720 --> 0:09:09.040 so you know, they might have a link to go 0:09:09.080 --> 0:09:11.160 to their website where you can get a cheaper price. 0:09:11.880 --> 0:09:14.440 All of this begs the question, of course posts the 0:09:14.440 --> 0:09:16.920 epic games lost, and of course they said that they're 0:09:16.920 --> 0:09:19.320 going to be fighting that one. But ultimately this is 0:09:19.400 --> 0:09:22.440 questioning the business model not just of Alphabet's Google, but 0:09:22.480 --> 0:09:25.840 also of Apple and also weez into a whole feeling 0:09:25.880 --> 0:09:28.920 that antitrust is just on fire right now. You'll beat 0:09:28.960 --> 0:09:31.120 in particular the fact that we're seeing case of the 0:09:31.160 --> 0:09:33.240 case being brought m and a falling apart. 0:09:33.800 --> 0:09:35.560 Am I right to feel that it's up the ante 0:09:35.600 --> 0:09:36.040 at the moment? 0:09:37.480 --> 0:09:39.800 Yeah, I mean this is the thing about anti trust 0:09:39.840 --> 0:09:42.000 is it often takes a long time. So the cases 0:09:42.000 --> 0:09:44.880 that we're talking about that have come to trial this year, 0:09:45.040 --> 0:09:47.920 we're actually really filed or started back in twenty nineteen, 0:09:48.000 --> 0:09:50.760 twenty twenty, so it's taken a long time, but we're 0:09:50.760 --> 0:09:53.400 finally seeing some of the results of the anti trust 0:09:53.480 --> 0:09:56.560 enforcement that has been sort of brewing up to this point. 0:09:56.920 --> 0:09:59.320 And now with the Biden anti trust enforcers who've been 0:09:59.360 --> 0:10:03.079 taking and even more aggressive approach. That's the FTC and 0:10:03.240 --> 0:10:06.480 the Justist Department under Elina Kahn and Jonathan Canter, they've 0:10:06.480 --> 0:10:08.960 been challenging a lot more deals. We had a story 0:10:09.040 --> 0:10:12.360 just earlier this week about how they challenged a record 0:10:12.440 --> 0:10:16.040 number of fifty deals last year, which is more than 0:10:16.440 --> 0:10:19.600 any since they started looking at deals beforehand in the 0:10:19.640 --> 0:10:20.520 nineteen seventies. 0:10:21.520 --> 0:10:23.800 Well, you put the context there for us Leon Anon 0:10:24.000 --> 0:10:25.839 as these things take a long time, but they all 0:10:25.840 --> 0:10:27.320 do seem to be like buses when they all come 0:10:27.320 --> 0:10:27.600 at once. 0:10:27.679 --> 0:10:29.880 Blue most lean Eland has been busy. We thank you 0:10:29.960 --> 0:10:30.400 so much. 0:10:38.360 --> 0:10:41.240 Open Opportunity Fund, a bene capital firm dedicated to funding 0:10:41.280 --> 0:10:45.360 black Latino founded technology companies, so announced that Marcello Claro 0:10:45.600 --> 0:10:47.400 is coming back is returning to the company as a 0:10:47.440 --> 0:10:50.080 vice chairman in general partner. Joining us now is Marcello 0:10:50.120 --> 0:10:53.280 and Paul Judge, Open Opportunity Fund chairman, who's managed to 0:10:53.360 --> 0:10:54.000 lure him back. 0:10:54.200 --> 0:10:55.840 And Paul, I'll start with you. 0:10:56.600 --> 0:10:59.520 Already fun one one hundred million dollars put to work 0:10:59.559 --> 0:11:02.160 on five black Latino tech companies. 0:11:02.400 --> 0:11:03.280 Can you just say. 0:11:03.120 --> 0:11:05.199 How we've managed to make an impact, how we're already 0:11:05.200 --> 0:11:05.760 seen what was it? 0:11:05.760 --> 0:11:09.200 Seven exits as full seven exits so far the companies 0:11:09.240 --> 0:11:11.600 over seventy five percent of them have raised their following 0:11:11.679 --> 0:11:14.200 rounds already. They're growing at one hundred percent of revenue 0:11:14.280 --> 0:11:17.319 year over year, all of them on average, across the portfolio, 0:11:17.480 --> 0:11:20.120 even in this environment. And so it just shows that 0:11:20.200 --> 0:11:22.880 even though minority founders have often overlooked, when they've given 0:11:22.920 --> 0:11:24.920 the chance, they overcome and they outperform. 0:11:25.480 --> 0:11:28.040 And often it's felt if you can't see it, you 0:11:28.040 --> 0:11:30.120 can't be it. Well, here we see it, you know, 0:11:30.360 --> 0:11:34.040 a Latino founder and operator, black operator and indeed founder. 0:11:34.640 --> 0:11:36.720 People realizing that this can be done, but it's still 0:11:36.720 --> 0:11:40.000 so hard. Ultimately, Macelo, why buy that? Why did soft 0:11:40.000 --> 0:11:40.880 Bank let you buy it? 0:11:41.160 --> 0:11:44.599 Ultimately, this is something I started when I was a 0:11:44.720 --> 0:11:48.079 soft Bank back in June twenty twenty, when the whole 0:11:48.120 --> 0:11:53.000 Black Lives Matter was it's a big problem. And one 0:11:53.080 --> 0:11:55.679 day just bothered me to see so many people talk 0:11:55.760 --> 0:11:58.839 and say, you know, we stand behind the black community, 0:11:59.120 --> 0:12:01.520 but really nobody would doing anything. So I went to 0:12:01.600 --> 0:12:04.200 mass and say, hey, why don't we this our business. 0:12:04.280 --> 0:12:06.920 We're a venture we are a venture capital firm. Why 0:12:06.920 --> 0:12:09.200 don't we start a fund to just help Black and 0:12:09.240 --> 0:12:11.960 Latin entrepreneurs. And you know in the with MASSA we 0:12:12.000 --> 0:12:15.480 started this fund. I invited Paul, who were both Henry Cranfellows. 0:12:15.480 --> 0:12:17.480 That's how we met, and we launched it and it 0:12:17.600 --> 0:12:20.439 has proven to be incredibly successful. And then I made 0:12:20.440 --> 0:12:23.680 an appeal to Softpak saying, you know, I think the 0:12:23.760 --> 0:12:26.560 fund needs to return back to his roots, and I 0:12:26.559 --> 0:12:28.960 don't think there's a better duo than doing it than 0:12:29.000 --> 0:12:33.240 a Hispanic entrepreneur or Hispanic investor with Paul, who's probably 0:12:33.320 --> 0:12:35.800 one of the black, one of the best Black investors 0:12:35.840 --> 0:12:39.679 and operators. So we're ready to tackle those seventy five companies. 0:12:39.760 --> 0:12:43.960 And we are already starting to raise for Phone number two, 0:12:44.120 --> 0:12:45.800 and we're going to call on a lot of people 0:12:45.800 --> 0:12:48.240 who always say, you know, we're here to help, And 0:12:48.520 --> 0:12:51.280 this is something I'm incredibly passionate about. You know, I'm 0:12:51.760 --> 0:12:55.240 a Hispanic founder and when I started brid Star, I 0:12:55.320 --> 0:12:58.040 struggled to raise capital, and it's just something that was 0:12:58.120 --> 0:13:00.079 very close to my heart. How hard was it to 0:13:00.160 --> 0:13:02.640 race capital and how my competitors, who were white, was 0:13:02.679 --> 0:13:04.520 so easy for them to raise capital. At the end, 0:13:04.520 --> 0:13:06.439 we ended up racing capital. So I just want to 0:13:06.480 --> 0:13:09.760 make sure it's easy for successful black and Latin entrepreneurs 0:13:09.840 --> 0:13:11.840 to have a fund that's solely dedicated to them. 0:13:12.320 --> 0:13:14.520 Well, I mean, some of the security based companies that 0:13:14.520 --> 0:13:17.559 you've founded, your three time founder, you've done that alongside 0:13:17.600 --> 0:13:19.800 other people of color, and I'm sure come up against 0:13:19.840 --> 0:13:23.320 that reticence of sometimes getting people to allocate you the checks. 0:13:23.760 --> 0:13:27.040 I'm interested Therefore, when soft ig is still going to 0:13:27.080 --> 0:13:29.440 be a key investor in Fund two but perhaps not 0:13:29.520 --> 0:13:33.600 founding LP, who are the other institutions and how galvanized 0:13:33.600 --> 0:13:36.000 they are they to still give money at this point, 0:13:36.360 --> 0:13:36.760 I think. 0:13:36.640 --> 0:13:39.200 There's a lot of organizations that they know that this 0:13:39.280 --> 0:13:41.160 is the right thing to do. But what we've proven 0:13:41.200 --> 0:13:43.520 with Fund one is that it's also the profitable thing 0:13:43.559 --> 0:13:47.160 to do very fun. One is outperforming, is delivering top 0:13:47.240 --> 0:13:50.880 qualtawer returns. And when you look at the portfolio, over 0:13:50.920 --> 0:13:52.600 eighty percent of the companies that we invest in are 0:13:52.600 --> 0:13:55.280 B to B software companies, and so half of those 0:13:55.360 --> 0:13:58.560 companies are areas where minority founders have a unique viewpoint 0:13:58.559 --> 0:14:04.080 like education, finances, workforce development, healthcare. But then half of 0:14:04.080 --> 0:14:06.280 those companies are just solving some of the hardest problems 0:14:06.280 --> 0:14:09.480 in AI and cybersecurity. And so we see organizations, whether 0:14:09.480 --> 0:14:12.719 it be endowments or pinter funds or institutional investors. I've 0:14:12.760 --> 0:14:15.080 found a lot of interest in supporting us in fund 0:14:15.080 --> 0:14:15.720 too and beyond. 0:14:16.320 --> 0:14:19.120 I think of ASUSU founder we've interviewed plenty of times 0:14:19.160 --> 0:14:22.240 trying to fix basically ultimately access to real. 0:14:22.200 --> 0:14:26.960 Estate and credit checking. When you're thinking about. 0:14:26.720 --> 0:14:28.680 The founders, you want to back at the moment, where 0:14:28.720 --> 0:14:30.720 are you finding them? Because you're also someone who's so 0:14:30.720 --> 0:14:34.200 busy looking in Latin America for Latin American founders. Are 0:14:34.240 --> 0:14:37.000 you basing this mainly in America or No? 0:14:37.320 --> 0:14:40.560 I've been buying GP interests of a lot of different funds, 0:14:40.560 --> 0:14:44.080 you know in Brazil, in you know, you know Bicycle, 0:14:44.120 --> 0:14:46.280 which is sort of venture or growth equity fund dedicated 0:14:46.320 --> 0:14:49.360 to Latin America. I've done some in the US press 0:14:49.400 --> 0:14:52.400 or Capital Partners, which is a private equity company, and 0:14:52.440 --> 0:14:54.360 so on. You know, I, like I said, in this 0:14:54.480 --> 0:14:55.960 new part of my life, I want to make sure 0:14:56.000 --> 0:14:59.200 that I'm backing successful people so I can pass on 0:14:59.320 --> 0:15:03.040 my capital, my experience, my contacts, and not necessarily operate myself. 0:15:03.280 --> 0:15:05.160 This is a little bit different because this is you know, 0:15:05.200 --> 0:15:08.040 opportunity fund is really personal to me, and this is 0:15:08.080 --> 0:15:10.840 something that, like I said, I'm clearly passionate of helping. 0:15:11.280 --> 0:15:14.000 I think black and Latino founders are as good as 0:15:14.080 --> 0:15:17.520 any other founders, but sometimes are not given the opportunity. 0:15:17.640 --> 0:15:20.440 So this and my Latin American founders are probably two 0:15:20.480 --> 0:15:22.320 of my favorite areas of interest. 0:15:22.360 --> 0:15:25.400 Now this has become a politicized area, though, and you 0:15:25.440 --> 0:15:28.320 just think about the fearlest fund over in Georgia at 0:15:28.320 --> 0:15:30.800 the moment, which because of the views in which the 0:15:30.920 --> 0:15:35.240 Supreme Court thinks about how money and indeed allocations to 0:15:35.360 --> 0:15:38.000 people getting into university and then allocations and money. 0:15:37.760 --> 0:15:39.400 To diverse people. 0:15:39.960 --> 0:15:42.760 I'm interested in whether you've had any political pushback from 0:15:43.000 --> 0:15:45.080 LPs wanting to get into a fund, or whether you 0:15:45.120 --> 0:15:47.760 still feel that people are interested in basically the profits. 0:15:47.760 --> 0:15:50.800 Ever, well, I'm a huge believer and that's you know, 0:15:50.840 --> 0:15:53.040 when I was when I had my first company, Brice Star, 0:15:53.760 --> 0:15:56.720 I never used a Latino card because I hate having 0:15:56.760 --> 0:15:59.600 to tell people give me a preferential treatment, because I 0:15:59.640 --> 0:16:01.760 was like, you know, I think that's wrong. You know, 0:16:01.840 --> 0:16:03.920 I do believe that we need to we have a 0:16:04.000 --> 0:16:07.040 proven business model. I think the founders that we're back 0:16:07.040 --> 0:16:09.440 in are as good as any other founders, and people 0:16:09.480 --> 0:16:12.840 should not invest with us because it's hey, it's just 0:16:12.960 --> 0:16:15.040 let's help black and Latino. We don't want that. We 0:16:15.080 --> 0:16:17.440 want people to recognize the Opportunity Fund as a top 0:16:17.520 --> 0:16:20.880 quartel fund and we're going to choose some amazing founders, 0:16:20.920 --> 0:16:24.040 some amazing entrepreneurs who I'll tell you, being a Black 0:16:24.080 --> 0:16:26.640 or Latino entrepreneur, you know, you have to try sometimes 0:16:26.640 --> 0:16:29.920 twice as hard, but you know, once once you're there, 0:16:30.080 --> 0:16:32.120 you know, I think that we're as capable of anybody else. 0:16:32.160 --> 0:16:34.280 So that's what we want. We don't want people to 0:16:34.400 --> 0:16:37.480 just give us money because it feels good to back 0:16:37.880 --> 0:16:39.960 black and Latinos. We want people to understand that there's 0:16:39.960 --> 0:16:42.840 a great business model here and that this founders are 0:16:42.880 --> 0:16:44.120 as good as anybody else. 0:16:44.560 --> 0:16:46.680 And you've got the growth as far and some of 0:16:46.720 --> 0:16:48.360 the access prove it. We thank you so much for 0:16:48.440 --> 0:16:50.640 joining us. It's wonderful to have you in the studio. 0:16:50.920 --> 0:16:53.280 From the Open Opportunity Fund of course, Poul Judge there 0:16:53.320 --> 0:16:56.160 and Marcello Claren. I mean, while coming up, we analyze 0:16:56.160 --> 0:16:58.160 the crypto market performed well. 0:16:58.480 --> 0:17:00.320 Waym's had a bit of a run up. Blake LaVita 0:17:00.320 --> 0:17:00.720 Gupt is. 0:17:00.760 --> 0:17:03.120 Joining US, founder and general partner at Delta Blockchain Fund 0:17:03.320 --> 0:17:21.440 a's Bluebow Technology. Time for Talking Tech now first up, 0:17:21.680 --> 0:17:24.320 reshuffling at time on sem in conduct and Manufacturing Chairman 0:17:24.359 --> 0:17:26.600 martinlu will retire in twenty twenty four. 0:17:26.400 --> 0:17:28.400 And seed his role to c C. Way. 0:17:28.840 --> 0:17:31.600 While Way keeps a low profile as CEO, he is 0:17:31.640 --> 0:17:34.200 said to be basically in the driving force behind TSMC's 0:17:34.280 --> 0:17:36.760 advanced packaging business and producing. 0:17:36.480 --> 0:17:38.120 Chips for Apple and Nvidio. 0:17:38.880 --> 0:17:42.439 Meanwhile, Michael nmograts he's doubling down on his expectations for 0:17:42.480 --> 0:17:45.720 a Bitcoin ETF approval in January. Nomgrats, of course, the 0:17:45.760 --> 0:17:49.320 CEO Galaxy Digital Holdings. He's told CNBC he expects SEC 0:17:49.359 --> 0:17:53.119 approval before January tenth Galaxy has partnered with Invesco on 0:17:53.240 --> 0:17:56.720 plans to launch a Bitcoin ETF, one of many. Meanwhile, 0:17:56.800 --> 0:17:58.960 let's continue to discuss the state of the crypto market. 0:17:59.119 --> 0:18:02.240 Cavita Gupter's with found and general partner of Delta Blockchain Fund, 0:18:02.280 --> 0:18:03.120 and I have a feeling. 0:18:03.480 --> 0:18:05.560 So we enter the holiday season, some. 0:18:05.520 --> 0:18:07.280 Of the conversations around the dinner table were a little 0:18:07.280 --> 0:18:09.160 bit easier at the moment with the runoff in bitcoin. 0:18:09.400 --> 0:18:12.080 I mean, how do you feel about January the tenth, 0:18:12.240 --> 0:18:14.960 or at least some sort of date being viewed as 0:18:15.000 --> 0:18:17.720 the one where we get a spot BITCOINYTF. 0:18:17.160 --> 0:18:18.120 Carolyne, It's time. 0:18:18.440 --> 0:18:20.879 This has been going on for too long and SEC 0:18:21.040 --> 0:18:23.040 has never given clarity. 0:18:22.560 --> 0:18:25.480 Of why not or why should And I think with. 0:18:25.560 --> 0:18:28.159 Setting up a date, it's just really it's just counting 0:18:28.200 --> 0:18:30.520 your days and walk into a new year with a 0:18:30.560 --> 0:18:33.679 new approval and having an institutional buy into the space 0:18:33.720 --> 0:18:35.680 which should have been legitimized. 0:18:35.119 --> 0:18:36.280 In US long time back. 0:18:36.600 --> 0:18:39.560 I'm very excited, and believe me, I tweeted this and 0:18:39.640 --> 0:18:41.720 it was seriously but I'm going. 0:18:41.520 --> 0:18:42.960 Through that last year. 0:18:43.080 --> 0:18:46.120 During this time, everybody was texting me and asking me, hey, 0:18:46.119 --> 0:18:48.240 are you doing okay, but you need for New Years. 0:18:48.320 --> 0:18:51.280 And this year, all I'm hearing about is how to 0:18:51.560 --> 0:18:53.880 buy crypto for my boyfriend and for my dad. 0:18:54.000 --> 0:18:55.680 So I think like this is going to be. 0:18:55.640 --> 0:18:58.879 A little crazy New Year, which may or may not 0:18:58.920 --> 0:18:59.720 be enjoyable for me. 0:19:00.200 --> 0:19:05.000 And then everyone gravitates towards bitcoin. But is that the 0:19:05.040 --> 0:19:07.879 crypto of choice at the moment? Is that the area 0:19:07.920 --> 0:19:11.200 that people will be galvanized by such an atfo will 0:19:11.200 --> 0:19:13.000 it spill over? And what about some of the projects 0:19:13.000 --> 0:19:15.040 that even analyzing I. 0:19:14.960 --> 0:19:18.280 Think technology will continue to be the heart of this 0:19:18.359 --> 0:19:22.800 whole industry, like old coins itself. When I say all coins, 0:19:23.080 --> 0:19:26.560 technology coins actually from different layer onns, different layer twos. 0:19:26.600 --> 0:19:30.040 Projects have also fueled up really high. I mean, one 0:19:30.080 --> 0:19:31.800 of the major projects which I'm a huge fan of, 0:19:31.840 --> 0:19:34.960 let's say Polygon, it really went down to around fifty 0:19:35.040 --> 0:19:37.480 cents or forty eight cents when the whole SEC news 0:19:37.520 --> 0:19:41.159 came out directly or indirectly classifying it as a security. 0:19:41.400 --> 0:19:44.600 That has also jumped up to like eighty eight ninety cents. 0:19:44.359 --> 0:19:48.560 Points right, So not just Bitcoin, but of course the 0:19:49.520 --> 0:19:52.320 whole position of SEC or the market that there is 0:19:52.400 --> 0:19:54.720 going to be a huge institution. 0:19:54.280 --> 0:19:58.040 Buy in into the space also moves the other old 0:19:58.040 --> 0:19:58.560 coin up. 0:19:58.720 --> 0:20:01.520 So we are seeing EAT really up and. 0:20:01.400 --> 0:20:03.920 Having a very good holding position at two point two 0:20:04.240 --> 0:20:06.880 from the sixteen hundred base point a sixteen. 0:20:06.600 --> 0:20:08.720 Hundred dollars point where it has been lying. 0:20:09.000 --> 0:20:11.879 So of course it's a whole market and also a 0:20:11.920 --> 0:20:14.399 lot of technology projects which has been coming up, Like 0:20:14.440 --> 0:20:16.800 we are talking about layers, we are talking about aostack. 0:20:16.880 --> 0:20:19.399 Bunch of those projects are also looking at the market 0:20:19.560 --> 0:20:22.040 with a huge adoption with these institutions. 0:20:22.640 --> 0:20:26.240 Talking of institutional play, we did hear from Michael Sonshein 0:20:26.359 --> 0:20:30.000 over at Grayscale about his optimism around his own conversion 0:20:30.040 --> 0:20:30.720 to an ETF. 0:20:30.720 --> 0:20:31.679 Just take a listen, Convita. 0:20:33.000 --> 0:20:35.600 I think that the SEC should and does in fact 0:20:35.640 --> 0:20:38.560 want to create an even playing field, and so we've 0:20:38.600 --> 0:20:41.480 publicly been advocates of the fact that when the Commission 0:20:41.760 --> 0:20:44.280 is ready to give the requisite approvals for SPOT products 0:20:44.280 --> 0:20:46.240 to come to market, that it should be done all 0:20:46.280 --> 0:20:49.160 at once. The issuers who are operationally ready to launch 0:20:49.200 --> 0:20:51.200 their products should come out the gate all at once. 0:20:52.320 --> 0:20:54.320 So say they will come out the gate all at 0:20:54.359 --> 0:20:58.600 once in January, what sort of immediate institution will pickup? 0:20:58.640 --> 0:20:59.760 Do you think that actually. 0:20:59.480 --> 0:21:02.320 Will be Have you put numbers or thought to that 0:21:02.400 --> 0:21:04.440 when at the same time we also hearing from a 0:21:04.560 --> 0:21:05.520 like some Jamie Diamond. 0:21:05.560 --> 0:21:07.080 He says, look, I would close it down if I 0:21:07.200 --> 0:21:07.679 was in powered. 0:21:08.359 --> 0:21:11.200 I mean, you know, every time Jamie Diamond has taken 0:21:11.240 --> 0:21:14.320 a stage and said something negative about bitcoin, the market 0:21:14.320 --> 0:21:16.800 has really picked up. So he's actually a good sign 0:21:16.800 --> 0:21:19.000 and good ormin for us. So he can go on 0:21:19.080 --> 0:21:23.320 saying all these things, but looking at if one, two, 0:21:23.480 --> 0:21:26.400 or all of them come out based on whatever their applications. 0:21:26.440 --> 0:21:28.040 And Blackstone has made some. 0:21:28.080 --> 0:21:30.320 Changes, a lot of other places, a lot of other 0:21:30.359 --> 0:21:34.080 appliers are making some changes. It's a multi billion dollar 0:21:34.200 --> 0:21:35.800 going into a trillion dollar. 0:21:35.560 --> 0:21:37.440 Market which we are looking into right. 0:21:37.920 --> 0:21:42.280 But I feel like also the technology of custody associated 0:21:42.320 --> 0:21:45.359 with it, theology of able to give it to individual 0:21:45.400 --> 0:21:48.400 clients to have liquidity, that's also important. 0:21:48.880 --> 0:21:51.240 Kavita, so great to catch up with you. Come back 0:21:51.280 --> 0:21:51.760 in January. 0:21:51.800 --> 0:21:53.840 Can we get to a founder and general partner of 0:21:54.000 --> 0:21:55.439 Delta Blockchain Fund. 0:22:02.840 --> 0:22:03.359 Welcome back to. 0:22:03.320 --> 0:22:05.639 Bloomberg Technology and Caroline Hired in New York. Let's get 0:22:05.640 --> 0:22:07.800 a quick check on these markets because while we're still 0:22:07.880 --> 0:22:10.200 rallying on to new highs and then as that one hundred, 0:22:10.200 --> 0:22:12.240 we're fading on bitcoin though a little bit tenure yield 0:22:12.280 --> 0:22:14.760 gets a bid. This is we anticipate that actually we 0:22:14.800 --> 0:22:17.200 will see some FED cuts as soon as maybe even 0:22:17.240 --> 0:22:18.000 March next year. 0:22:18.200 --> 0:22:20.639 That being echoed by another FED member. We're looking at 0:22:20.640 --> 0:22:22.520 the Bitcoin off by one and a half percent. 0:22:22.600 --> 0:22:24.920 Maybe there's some profit taking at the moment we know. Indeed, 0:22:25.000 --> 0:22:26.919 Ark has been selling some of its gray scale bitcoin 0:22:26.920 --> 0:22:29.760 trush shares as bitcoin had been rallying up to about 0:22:29.760 --> 0:22:31.840 forty three thousand. Move on, have a look at some 0:22:31.840 --> 0:22:34.399 of the individual names that we're looking at, because well 0:22:34.520 --> 0:22:36.280 there's some deals being made and video are off on 0:22:36.280 --> 0:22:38.360 about one point five percent. Look call that profit taking 0:22:38.400 --> 0:22:39.960 as well if you'd like. We're looking at a firm 0:22:40.000 --> 0:22:43.199 though really rallying hard, Walmart, deepening that connection there by 0:22:43.320 --> 0:22:45.879 now pay later. We're more than six percent, so rocketing 0:22:45.960 --> 0:22:50.600 higher on further deepening of partnerships there. I'm looking at 0:22:50.640 --> 0:22:52.719 a Lumina though more than five percent. It was one 0:22:52.720 --> 0:22:54.879 of the best performers on then as that one hundred 0:22:54.920 --> 0:22:58.240 today this as we see agitation, could we indeed be 0:22:58.240 --> 0:23:00.960 seeing Carlai can come in try and once again be 0:23:01.080 --> 0:23:03.280 moving to make big impact of this business as they 0:23:03.280 --> 0:23:06.840 sell off their Grail acquisition that ultimately was put off 0:23:06.840 --> 0:23:09.600 by regulators. Illumina On the upside as, many feel that 0:23:09.600 --> 0:23:13.480 actually this investor and an activist at investor at that 0:23:13.680 --> 0:23:17.479 could lay bear some changes for the business. Meanwhile, we 0:23:17.520 --> 0:23:20.399 want to talk about other areas of change and perhaps 0:23:20.480 --> 0:23:24.000 some drama because on Christmas Day, you're no longer going 0:23:24.040 --> 0:23:26.359 to be able to buy perhaps some of Apple's latest 0:23:26.400 --> 0:23:27.960 smart watch devices here. 0:23:27.840 --> 0:23:28.439 In the US. 0:23:28.840 --> 0:23:31.919 Now, this is the company battles on ongoing patent dispute 0:23:32.040 --> 0:23:35.240 for more bluembogs. Mark German joins us now and this 0:23:35.320 --> 0:23:38.240 is the culmination of a pan dispute that came out 0:23:38.240 --> 0:23:39.040 from October. 0:23:39.280 --> 0:23:41.200 And what is it is this posturing? 0:23:41.320 --> 0:23:43.280 Is this actually that you won't be able to buy 0:23:43.400 --> 0:23:44.520 via Apple itself? 0:23:45.040 --> 0:23:46.760 Yeah, this has been going on for quite a while. 0:23:46.800 --> 0:23:51.240 There was a lengthy trial between Apple and Maximo in California. 0:23:51.400 --> 0:23:55.080 This is in relation to patents for blood oxygen saturation. 0:23:55.880 --> 0:23:59.000 Masimo's held patents for years on the technology use in 0:23:59.040 --> 0:24:01.720 not invasively to term the amount of oxygen your blood. 0:24:02.359 --> 0:24:03.639 They believe that. 0:24:03.400 --> 0:24:06.479 They suit Apple over this, that they violate those patents 0:24:06.520 --> 0:24:09.520 for their blood Oxygen app that launched in twenty twenty 0:24:09.520 --> 0:24:12.600 on the Series six. And this is no joke, this 0:24:12.680 --> 0:24:13.679 is not posturing. 0:24:13.760 --> 0:24:17.440 The International Trade Commission, the ITC ruled that there's going 0:24:17.480 --> 0:24:20.360 to be an important junction. That important junction is scheduled 0:24:20.359 --> 0:24:23.639 to come into place on Christmas Day, December twenty fifth. 0:24:24.240 --> 0:24:26.679 Apple has put all the measures in place to stop 0:24:26.760 --> 0:24:30.000 sales of the Ultra two in the Series nine, which 0:24:30.040 --> 0:24:33.600 represent the vast, vast, vast majority of Apple Watched sales. 0:24:33.640 --> 0:24:37.240 These are their newest smart watches. Those sales will stop 0:24:37.240 --> 0:24:41.359 online on Thursday, and by Christmas Eve on the twenty fourth, 0:24:41.359 --> 0:24:43.679 they will stop in Apple's about two hundred and seventy 0:24:44.000 --> 0:24:45.040 US retail store. 0:24:45.080 --> 0:24:48.159 So this is real. We are only a few days. 0:24:48.040 --> 0:24:51.000 Away from this happening, so I would say it's extraordinarily 0:24:51.119 --> 0:24:55.200 unlikely that anything changes. Maybe there's a settlement or cross 0:24:55.280 --> 0:24:59.960 licensing or a licensing agreement, maybe the Biden White House steps. 0:24:59.640 --> 0:25:01.040 Into play lace in the next few days. 0:25:01.040 --> 0:25:04.040 But barring that, sales of the Apple Watch Ultra too, 0:25:04.400 --> 0:25:07.160 sales of the Apple Watch Series nine, those will seize 0:25:07.200 --> 0:25:11.439 to happen through Apple's direct sales Channels by Christmas Marc German. 0:25:11.960 --> 0:25:14.720 Fascinating, great analysis, Thank you for bringing it to us, 0:25:14.760 --> 0:25:17.080 and indeed, well we can ask about whether there is 0:25:17.080 --> 0:25:19.640 anything likely to change in the next few days. As mentioned, 0:25:19.680 --> 0:25:23.520 it's a medical device maker, Massimo has accused Apple of 0:25:23.560 --> 0:25:26.440 copying patented technology for measuring blood oxygen. 0:25:26.119 --> 0:25:29.720 Levels that they used in their smart watch. Joining us now. 0:25:29.880 --> 0:25:31.440 Joe Keiani is the founder. 0:25:31.160 --> 0:25:34.400 And chairman and CEO of Massimo, and it's great to have. 0:25:34.359 --> 0:25:35.320 Some time with you, Joe. 0:25:35.400 --> 0:25:39.760 And look, will anything has Apple in any way turned 0:25:39.800 --> 0:25:43.440 to you, tried to be making any sort of well, agreement, 0:25:43.600 --> 0:25:45.240 negotiate some sort of settlement here. 0:25:46.520 --> 0:25:50.320 No, no, they haven't ever since twenty thirteen when they 0:25:50.359 --> 0:25:54.040 contacted me and said we're the platinum of non invasive monitoring. 0:25:54.400 --> 0:25:57.040 They want us to go in meet with them because 0:25:57.040 --> 0:26:00.240 they want to integrate our technology. We have not heard 0:26:00.240 --> 0:26:03.240 from them, and stead they ended up recruiting twenty five 0:26:03.280 --> 0:26:07.600 of my engineers, including our chief medical officer and CTO 0:26:07.760 --> 0:26:12.280 from a spinoff company. And this is not an accidental infringement. 0:26:12.560 --> 0:26:16.080 This is a deliberate the taking of our intellectual property. 0:26:16.760 --> 0:26:18.919 You spent millions to take on Apple. 0:26:19.320 --> 0:26:22.080 Well, is this because of your business, because of what 0:26:22.119 --> 0:26:24.080 you think. Ultimately you could win out in terms of 0:26:24.119 --> 0:26:26.000 them being forced to pay you for the use of 0:26:26.040 --> 0:26:28.520 your technology or to settle or is this something bigger. 0:26:29.640 --> 0:26:30.680 Well, first of all. 0:26:30.520 --> 0:26:33.119 I'm glad the world can now see we're the true 0:26:33.160 --> 0:26:38.720 inventors and creators of this technology. We want to actually 0:26:38.800 --> 0:26:41.800 let you know that by banning the Apple Watch with 0:26:41.920 --> 0:26:46.600 SBO two ely there's no issue because in Apple's internal 0:26:46.680 --> 0:26:49.960 documents that we saw in court showed that they knew 0:26:50.000 --> 0:26:52.960 that product wasn't good enough to be used medically and 0:26:53.000 --> 0:26:55.119 they didn't even seek FDA clearance. 0:26:55.000 --> 0:26:55.800 Because of that. 0:26:56.200 --> 0:26:59.080 Their own testing showed they got two measurements a day 0:27:00.040 --> 0:27:01.440 on thirty seven percent of the people. 0:27:01.600 --> 0:27:02.280 That's it. 0:27:02.560 --> 0:27:05.879 We get over seventy thousand measurements a day on everyone, 0:27:06.400 --> 0:27:09.800 and they pushed that out anyway, because, as their email showed, 0:27:09.840 --> 0:27:13.520 they thought, and the chaos of COVID this is their quotation, 0:27:14.080 --> 0:27:17.320 they could get market share away from fitbit. So no, 0:27:17.520 --> 0:27:20.120 why we sue them, because this is our intellectual property. 0:27:20.320 --> 0:27:21.919 We have our own product. 0:27:21.800 --> 0:27:26.720 I'm showing here, and we have been in Pulsark symmetry 0:27:26.760 --> 0:27:31.200 business for thirty five years, not only now in the consumers, 0:27:31.240 --> 0:27:34.320 but hospitals. In fact, we just got FDA clearance for 0:27:34.359 --> 0:27:37.480 a product we call Stork, which is a baby monitor 0:27:37.880 --> 0:27:42.320 to help parents monitor their baby's pulsec symmetry when they're 0:27:42.320 --> 0:27:43.080 not next to them. 0:27:43.440 --> 0:27:46.399 Now, an Apple spokesman, Women Joe, has said that the 0:27:46.440 --> 0:27:50.040 company is working on submitting workarounds in the US to 0:27:50.080 --> 0:27:52.800 the Customers Agency, and that's of course in charge of 0:27:52.840 --> 0:27:55.760 actually approving changes to get a product back in the market. 0:27:55.840 --> 0:27:57.960 But do you think the product that you just showed us, 0:27:58.040 --> 0:28:00.240 your product could take any market share? 0:28:01.480 --> 0:28:04.600 Absolutely, we are focusing from hospital to home right now 0:28:04.600 --> 0:28:07.119 with this product, but there's a consumer version of that 0:28:07.160 --> 0:28:10.600 product that we're going to be introducing here shortly. This 0:28:10.640 --> 0:28:13.280 is the freedom Watch that has all of our bio 0:28:13.400 --> 0:28:16.959 sense and capability that we have in these chips that 0:28:17.000 --> 0:28:20.159 we put on the back of these watches, and with 0:28:20.400 --> 0:28:24.280 our distribution channel which is about twenty thousand locations, with 0:28:24.440 --> 0:28:27.720 their near recent acquisition we made of Sound United, which 0:28:27.760 --> 0:28:30.760 is the owners of Bowers and Wilkins. Then in the Morans, 0:28:31.040 --> 0:28:34.359 we hope to pick a good market share for people 0:28:34.440 --> 0:28:39.600 that really care about pulse asymmetry, people with chronic illnesses, 0:28:39.640 --> 0:28:42.640 about a third of the population that buys these watches 0:28:42.680 --> 0:28:45.840 have chronic illnesses and they will benefit from a serious, 0:28:46.320 --> 0:28:47.320 accurate product. 0:28:48.200 --> 0:28:51.760 Joe, Ultimately, what could have been done to stop this? 0:28:51.920 --> 0:28:56.040 Obviously Apple could have come to and bought and license 0:28:56.120 --> 0:29:00.920 the technology. But when ultimately big tech companies or any 0:29:00.920 --> 0:29:05.520 technology companies takes talent, takes employees, well, that's kind of 0:29:05.560 --> 0:29:07.280 just the way in which business is done. What do 0:29:07.320 --> 0:29:09.480 you think, if anything you could have done to stop 0:29:09.520 --> 0:29:11.800 your CTO, your chief medical officer from leaving. 0:29:12.880 --> 0:29:16.600 Well, first of all, not every company does this. Apple 0:29:16.720 --> 0:29:19.600 is the biggest company, the most powerful company. They could 0:29:19.640 --> 0:29:22.520 be an example of how to do things right and 0:29:22.600 --> 0:29:25.240 do things well. They didn't have to steal our people. 0:29:25.320 --> 0:29:27.640 We could have worked with them. But secondly, you know 0:29:27.760 --> 0:29:32.080 this whole ITC case. Apple could have not been even 0:29:32.160 --> 0:29:35.760 under their jurisdiction if they made these watches in the USA. 0:29:36.480 --> 0:29:39.560 The fact that they still haven't, I don't know, it 0:29:39.560 --> 0:29:41.600 says something about their relationship with China. 0:29:41.800 --> 0:29:43.880 This could have been averted for them. 0:29:44.040 --> 0:29:44.240 Now. 0:29:44.480 --> 0:29:48.000 Ultimately, we're suing them in the California and Delaware courts 0:29:48.000 --> 0:29:50.479 for pan infringement, and if we went there, we'll get 0:29:50.520 --> 0:29:54.400 an injunction regardless where they manufactured. But this ITC case 0:29:54.400 --> 0:29:57.200 could have been averted by them by just making it here, 0:29:57.560 --> 0:29:58.720 and they've refused to do it. 0:29:58.800 --> 0:30:00.920 We make it here, make all of our. 0:30:00.840 --> 0:30:05.160 Sensors in New Hampshire, hundreds of millions of LEDs and detectors. 0:30:05.480 --> 0:30:07.600 We bring them here to Irvine and we do the 0:30:07.680 --> 0:30:11.040 final manufacturing. So why they can't make it here, I 0:30:11.080 --> 0:30:11.920 don't understand. 0:30:12.920 --> 0:30:14.760 Would you settle, Joe? 0:30:14.920 --> 0:30:20.120 The short answer is yes, despite their leadership doing some 0:30:20.160 --> 0:30:22.800 of the things they've done to us, and not just 0:30:22.920 --> 0:30:27.160 Massimal but other smaller companies that they sherlocked, or they 0:30:27.160 --> 0:30:30.880 do efficient infringement to for better men of people and 0:30:31.000 --> 0:30:34.400 our Muture shareholders. I put out the Olive branch on 0:30:34.400 --> 0:30:36.600 one of these news programs that I would work with 0:30:36.640 --> 0:30:39.520 them to improve their product, or they can even put 0:30:39.840 --> 0:30:41.680 these chips behind their product. 0:30:42.920 --> 0:30:46.280 But they haven't called it takes two the tangle, and. 0:30:46.240 --> 0:30:47.640 It takes the right price point. 0:30:47.920 --> 0:30:51.240 What sort of dollar amount would be the right from 0:30:51.240 --> 0:30:55.440 a fiduciary duty and responsibility perspective from your part, Joe. 0:30:55.720 --> 0:30:57.440 Well, they haven't even asked. We haven't. 0:30:57.480 --> 0:31:00.160 I mean they're a starting number. Say I'm not I'm 0:31:00.200 --> 0:31:00.640 on the phone. 0:31:00.840 --> 0:31:03.800 Oh come on, I'm not negotiating with you on TV. No, 0:31:04.120 --> 0:31:07.360 there needs to be an honest dialogue. There needs to 0:31:07.400 --> 0:31:11.240 be an apology. These guys have been caught with their 0:31:11.240 --> 0:31:14.800 hands and the cookie jar, and instead of being embarrassed 0:31:14.920 --> 0:31:17.800 and doing the right thing, they're blaming everybody and they're 0:31:17.800 --> 0:31:19.040 fighting everybody. 0:31:19.120 --> 0:31:19.360 You know. 0:31:19.880 --> 0:31:22.160 In twenty twelve, when they decided to make the watch, 0:31:22.960 --> 0:31:25.800 they decided the most important feature was Paul socks. But 0:31:26.240 --> 0:31:28.560 they couldn't do it, so they created a project called 0:31:28.640 --> 0:31:32.520 Rover to see who can They found fifty companies and 0:31:33.280 --> 0:31:35.560 in their own internal documents they said there are two 0:31:35.560 --> 0:31:39.000 stand up companies, Massimo and Circle Corps, both run by 0:31:39.080 --> 0:31:41.800 Joe Kiani. They went to Tim Cook and said we 0:31:41.840 --> 0:31:44.680 should buy them just to get Joe let all that 0:31:44.800 --> 0:31:47.400 technology because they called me to see jobs of the 0:31:47.400 --> 0:31:50.640 healthcare industry. But Tim Cook said, no, you get the 0:31:50.680 --> 0:31:54.160 same result by smart recruiting. 0:31:54.560 --> 0:31:55.200 So what do they do? 0:31:55.840 --> 0:31:58.440 I was paying my people ninety at percentile. It's not 0:31:58.480 --> 0:32:00.760 like I don't pay our people well, believe in them. 0:32:01.040 --> 0:32:04.320 They began doubling their salaries and bonuses. Some of them 0:32:04.320 --> 0:32:07.040 they gave millions of dollars in RSUs to get them 0:32:07.360 --> 0:32:11.080 some in unlabeled buildings a couple of blocks from me 0:32:11.120 --> 0:32:13.760 for those who didn't want to move to northern California. 0:32:14.240 --> 0:32:16.560 Yeah, this is not normal business. 0:32:16.960 --> 0:32:19.240 We will put that to Apple thus far, of course, 0:32:19.240 --> 0:32:21.000 Apple have said that they're looking for a workaround. 0:32:21.040 --> 0:32:22.320 Could they fix us with software? 0:32:24.320 --> 0:32:26.560 First of all, with software, I don't think that could work. 0:32:27.480 --> 0:32:30.720 It shouldn't because our patents are not about the software. 0:32:30.720 --> 0:32:35.280 It's about the hardware with the software. But they could 0:32:35.360 --> 0:32:38.000 do a lot of things differently. Maybe it's time they 0:32:38.040 --> 0:32:39.880 think different or maybe they act different. 0:32:40.160 --> 0:32:42.720 What about the administration? Are they being in touch? Are 0:32:42.720 --> 0:32:44.080 they looking for different behavior? 0:32:45.080 --> 0:32:45.320 Well? 0:32:45.760 --> 0:32:46.360 I believe so. 0:32:46.440 --> 0:32:48.880 You know, the administration has been critical of the top 0:32:49.000 --> 0:32:53.200 four tech company saying they're stepping on smaller arrivals and 0:32:53.240 --> 0:32:55.720 they're going to try to defend that. So I don't 0:32:55.760 --> 0:32:59.040 expect the administration to step in here. And every time 0:32:59.080 --> 0:33:01.880 Apple content them, I guess by a law they have 0:33:01.960 --> 0:33:04.880 to call us to get our response. So, yes, we've 0:33:04.880 --> 0:33:07.200 been in contact with them, and we don't think they 0:33:07.240 --> 0:33:10.840 will intervene. I think their recent stunt to pull the 0:33:10.840 --> 0:33:13.320 products off the market a few days earlier than the 0:33:13.400 --> 0:33:16.600 ITC decided it should be pulled off the market. They're 0:33:16.640 --> 0:33:20.920 trying to get the public to force the Biden administration 0:33:21.480 --> 0:33:23.080 to do something they don't think they should do. 0:33:23.320 --> 0:33:24.640 But I don't think it's going to work. 0:33:25.240 --> 0:33:28.520 Jokiani, it's fascinating talking to you. Please, you're not going 0:33:28.560 --> 0:33:30.840 to negotiate with me on TV. But when or if 0:33:30.840 --> 0:33:32.960 you do, indeed negotiate with Apple, you let us know. 0:33:33.080 --> 0:33:35.240 Please how much watch what you want me to do? 0:33:36.520 --> 0:33:39.120 And Massimo stay well, thank you for your time today. 0:33:39.280 --> 0:33:40.040 The CEO there. 0:33:40.200 --> 0:33:42.160 Meanwhile, coming up, we're going to talk about the health 0:33:42.240 --> 0:33:45.080 of something else now a bench capital in twenty twenty four, 0:33:45.120 --> 0:33:47.600 pitch Books got this outlookout will break down the findings 0:33:47.680 --> 0:34:05.920 next with analyst Carl Stamford is Rumage Technology, Finacial. 0:34:05.560 --> 0:34:06.960 Data and Research from Pitchbook. 0:34:07.040 --> 0:34:08.959 Well, it's out with its twenty twenty four venture Capital 0:34:09.000 --> 0:34:10.520 outlook and we want to break. 0:34:10.360 --> 0:34:11.600 It down for you with the findings. 0:34:11.680 --> 0:34:14.560 Kyle Stamfords here his lead US bench capital research analyst 0:34:14.560 --> 0:34:16.880 at Pitchbook, And well, I mean it hasn't been the 0:34:16.880 --> 0:34:19.520 prettiest of pictures to twenty twenty three. Are we expecting 0:34:19.600 --> 0:34:22.040 VC allocation of funds to pick up a little bit 0:34:22.040 --> 0:34:23.040 in twenty twenty four. 0:34:23.600 --> 0:34:25.760 Maybe a little bit, right. I don't think we're looking 0:34:25.760 --> 0:34:27.920 at twenty twenty four as a as a full rebound 0:34:28.000 --> 0:34:31.360 for a venture, but certainly fundraising is one area that 0:34:31.400 --> 0:34:33.160 a lot of people are really interesting. We looked at 0:34:33.160 --> 0:34:35.239 our distribution data and tried to model out the next 0:34:35.280 --> 0:34:37.560 four quarters. You know, we do see it to be 0:34:37.640 --> 0:34:40.759 relatively similar, maybe a little uptick in fundraising, but not 0:34:41.040 --> 0:34:43.600 incredibly strong. Right, It's going to be well below the 0:34:43.680 --> 0:34:46.440 records of twenty twenty and twenty twenty one. It's going 0:34:46.520 --> 0:34:50.879 to be well below the historical growth trend. But you know, 0:34:51.400 --> 0:34:53.520 with that distribution data, there can always be a couple 0:34:53.560 --> 0:34:56.880 of billion dollar funds that maybe are raised and increase 0:34:56.960 --> 0:35:01.799 that top line figure. To know more acceptable level for 0:35:01.920 --> 0:35:03.520 the VC market. 0:35:03.320 --> 0:35:06.280 We're looking at a chart of annual VC backed public 0:35:06.400 --> 0:35:09.799 listing value. So ultimately like where the exits come from 0:35:09.840 --> 0:35:11.719 as well, CAR and that's. 0:35:11.880 --> 0:35:13.440 Going to in any way feed better. 0:35:13.520 --> 0:35:15.960 Do you think will we get some public exits, Will 0:35:16.000 --> 0:35:18.680 we therefore get some more interest in money being handed 0:35:18.719 --> 0:35:20.520 back to LPs and LPs wanting to recommit. 0:35:22.520 --> 0:35:25.359 I think too expect it to be this record year. 0:35:25.400 --> 0:35:28.160 Anywhere near what we saw in twenty twenty one is probably, 0:35:28.600 --> 0:35:30.439 you know, kind of a fool's end, right, But when 0:35:30.440 --> 0:35:32.759 you look at where the IPOs happened. What IPOs did 0:35:32.760 --> 0:35:34.920 happen this year, there were thirty nine they've committed completed 0:35:35.000 --> 0:35:37.320 so far. More than half of those are in healthcare. 0:35:37.960 --> 0:35:39.759 Then you look at there's you know, seven hundred and 0:35:39.760 --> 0:35:41.839 twenty unicorns in the US. There's a lot of money 0:35:41.880 --> 0:35:44.239 that's still stuck in the private markets. But we are 0:35:44.400 --> 0:35:46.600 entering a year with a little bit better economic signals 0:35:46.640 --> 0:35:49.320 than we did in twenty twenty three. Russell two thousand 0:35:49.480 --> 0:35:52.400 growth is up twelve percent the last month. Prices, sales 0:35:52.480 --> 0:35:54.960 ratios are expanding a little bit in the public markets, 0:35:55.000 --> 0:35:58.080 and I think we'll get to a spot where founders 0:35:58.080 --> 0:36:00.359 and companies are able to compromise on a price works 0:36:00.360 --> 0:36:03.799 for them and get out into the public market. That's 0:36:03.840 --> 0:36:05.520 what we see. It's not gonna be a great year, 0:36:05.520 --> 0:36:07.399 but it should be better than this year. 0:36:07.440 --> 0:36:08.880 I mean, look then, as that one hundreds at a 0:36:08.880 --> 0:36:10.200 record high. A lot of that's to do with a 0:36:10.200 --> 0:36:12.680 magnificent seven. But I'm sure there's some AI stories that 0:36:12.719 --> 0:36:17.000 can be pitched next year. I'm interested in who, if anyone, 0:36:17.120 --> 0:36:18.799 is committing to. 0:36:18.760 --> 0:36:20.840 The world of VC. Are we seeing. 0:36:22.000 --> 0:36:24.239 A typical LP coming in at the moment you're seeing 0:36:24.280 --> 0:36:26.560 different types of commitments coming from the. 0:36:26.480 --> 0:36:28.600 Institutions, or indeed are they going direct now? 0:36:28.600 --> 0:36:30.920 Are we cutting out a VC entirely and then putting 0:36:30.960 --> 0:36:32.840 allocations towards the startups themselves? 0:36:34.440 --> 0:36:36.720 Sure allocation is not going to get or two vcs 0:36:36.760 --> 0:36:38.520 is not going to get cut right, But what we 0:36:38.600 --> 0:36:42.239 have seen over the past two years is LPs try 0:36:42.280 --> 0:36:45.200 to find their balance and now after the twenty twenty 0:36:45.239 --> 0:36:49.239 two is the stock market shock that really unbalanced their portfolios, 0:36:49.320 --> 0:36:51.680 wasn't allowing them to commit. Now we see in last 0:36:51.760 --> 0:36:54.480 year kind of rebalancing of the broader market, and now 0:36:54.480 --> 0:36:56.040 they know where they see it and they can know 0:36:56.080 --> 0:36:58.799 where to expect inflation to be or interest rates and 0:36:58.880 --> 0:37:01.920 adjust their portfolio in that way. So we do expect 0:37:01.920 --> 0:37:04.760 there to be a little more interested in LP's committing 0:37:04.800 --> 0:37:07.359 to funds. Right, we had thirty two billion dollar funds 0:37:07.360 --> 0:37:09.719 in twenty twenty one, those funds would likely be coming 0:37:09.760 --> 0:37:12.680 back and start fundraising you know, this year, maybe late 0:37:12.719 --> 0:37:15.239 in the year. So we do think that LPs will 0:37:15.600 --> 0:37:19.040 continue committing, not at an extreme pace and very similar 0:37:19.080 --> 0:37:21.600 to what we see this year, but a little. 0:37:21.440 --> 0:37:22.399 Uptake for VC. 0:37:23.239 --> 0:37:27.040 What about others that we start to see on well, 0:37:27.320 --> 0:37:30.120 the investor list. When I look at the latest AI rounds, 0:37:30.160 --> 0:37:32.000 a lot of the time it's been in Nvidia, A 0:37:32.040 --> 0:37:34.800 lot of the time it's been Alphabet, it's been action corporates. 0:37:34.840 --> 0:37:36.359 Is that something we're going to see in twenty twenty 0:37:36.360 --> 0:37:36.719 four to two? 0:37:38.040 --> 0:37:38.239 Yeah? 0:37:38.440 --> 0:37:40.800 Well, AI is really interesting because all of those large 0:37:40.800 --> 0:37:43.160 corporates that you mentioned are now trying to be the 0:37:43.280 --> 0:37:46.280 lead for AI, right, and so you like you mentioned 0:37:46.440 --> 0:37:50.320 Microsoft and Video, they're very heavy into that sector. Corporates 0:37:50.360 --> 0:37:52.640 have declined, their activity has declined a little bit this 0:37:52.719 --> 0:37:54.880 year broadly speaking, and I think a lot of that 0:37:54.920 --> 0:37:57.359 has to do with, you know, there is still some 0:37:58.000 --> 0:38:00.040 you know, outlook of a recession. They don't want to 0:38:00.080 --> 0:38:04.040 over commit to these long term capital bases. But those corporates, 0:38:04.080 --> 0:38:06.880 those large corporations that are sitting on a large stack 0:38:06.960 --> 0:38:08.799 of cash, do have that money to put to work 0:38:08.800 --> 0:38:11.120 in startups, and we have seen that that is a 0:38:11.160 --> 0:38:12.759 really good place for that money to go. 0:38:14.080 --> 0:38:16.320 We will see if that continues. Carl Stamford. 0:38:16.360 --> 0:38:18.160 It has been great to have you throughout the year 0:38:18.320 --> 0:38:20.200 with your data from pitchbook, and we thank you for 0:38:20.200 --> 0:38:21.640 pushing us toward to twenty twenty four. 0:38:21.680 --> 0:38:22.680 Excited to have you on then. 0:38:30.480 --> 0:38:33.600 Like Matter, it's a startup building computing products that use 0:38:33.680 --> 0:38:36.800 light in place of electricity, and it's raised additional financing 0:38:36.840 --> 0:38:39.560 amid the AI boom, pushing its valuation to a. 0:38:39.480 --> 0:38:40.800 Call one point two billion dollars. 0:38:41.000 --> 0:38:43.080 I'm pleased to say joining us now like Matter CEO, 0:38:43.160 --> 0:38:45.640 Nick Harris, And the reason you are so in demand 0:38:45.680 --> 0:38:48.280 at the moment or in this particular moment of generative 0:38:48.280 --> 0:38:52.759 AI is that it's really constantly, really energy inefficient to 0:38:52.800 --> 0:38:56.720 basically train a big AI large language model. You're thinking 0:38:56.880 --> 0:38:59.480 your work for years, seminal work has been done on 0:38:59.520 --> 0:39:04.239 basically using the lights as a science, as a technology 0:39:04.719 --> 0:39:06.239 to be able to make it more efficient. Can you 0:39:06.280 --> 0:39:07.920 just strip down as how that happens? 0:39:09.200 --> 0:39:10.279 Yeah, absolutely so. 0:39:10.960 --> 0:39:14.040 Today when you look at AI models like Chat, GPT 0:39:14.239 --> 0:39:17.400 and the stuff that Google's doing with Bard and Project Gemini, 0:39:17.760 --> 0:39:22.120 these systems are built on ten thousand node sixty thousand 0:39:22.160 --> 0:39:27.360 nodes supercomputers, and the chips that comprise these massive supercomputers 0:39:27.400 --> 0:39:31.160 building the AI models are burning an enormous amount of energy. 0:39:31.480 --> 0:39:33.480 So what we're doing at light Matter is we're actually 0:39:33.480 --> 0:39:35.920 figuring out how to scale to one hundred thousand nodes, 0:39:36.080 --> 0:39:36.840 how to drive. 0:39:36.640 --> 0:39:37.439 The energy down. 0:39:37.719 --> 0:39:39.840 I mean, just to give you a reference, today computer 0:39:39.920 --> 0:39:43.040 chips have about the same energy density as a nuclear reactor, 0:39:43.560 --> 0:39:46.280 and between the time when I founded the company and today, 0:39:47.120 --> 0:39:49.640 they've actually increased by about five x the amount of 0:39:49.680 --> 0:39:52.560 power per package. It's a tough trajectory. And if we 0:39:52.600 --> 0:39:55.480 want to keep growing in the AI space and getting 0:39:55.480 --> 0:39:59.239 bigger and better models, some fundamental new technologies are needed, 0:39:59.280 --> 0:40:00.120 and that's what we're doing. 0:40:00.160 --> 0:40:02.880 It light better and you're therefore growing. What is it 0:40:02.880 --> 0:40:06.080 your head counters more than fifty percent? Is your last 0:40:06.440 --> 0:40:08.960 VC round which was back in May twenty twenty three, 0:40:09.080 --> 0:40:11.160 how do you Is it about people? Is it about 0:40:11.200 --> 0:40:13.400 talent and that's why you need the money? Or how 0:40:13.480 --> 0:40:14.840 else do you develop as technology? 0:40:16.120 --> 0:40:16.279 Right? 0:40:16.360 --> 0:40:18.839 So for this round, I think for the first time 0:40:19.120 --> 0:40:22.239 at light Matter, we've had investors approach us and the 0:40:22.320 --> 0:40:24.560 question was really how fast could you go if you 0:40:24.640 --> 0:40:29.000 had effectively, you know, approximately unlimited funding, what would you do? 0:40:29.480 --> 0:40:31.319 And we looked at the headcount requirements. 0:40:31.360 --> 0:40:35.080 We looked at our product pipeline and we decided to 0:40:35.080 --> 0:40:36.040 take on the money. 0:40:35.800 --> 0:40:36.680 To accelerate all of that. 0:40:36.719 --> 0:40:38.680 Where one hundred and fifty people today will be at 0:40:38.680 --> 0:40:41.600 around two hundred and twenty by the end of twenty 0:40:41.640 --> 0:40:44.520 twenty four. And what we're doing is we're taking this 0:40:44.640 --> 0:40:49.400 money to accelerate our interconnect product, Passage, accelerate the development 0:40:49.400 --> 0:40:52.719 of that, get it into data centers at the end 0:40:52.760 --> 0:40:56.040 of next year. And we're incredibly excited to get this 0:40:56.080 --> 0:40:58.400 whole thing kicked off and you're going to start to 0:40:58.440 --> 0:41:00.880 see that. You know, these super ter are based on 0:41:01.320 --> 0:41:04.520 photonics and using light to connect everything up and it's 0:41:04.560 --> 0:41:05.960 going to be critical for the future. 0:41:06.160 --> 0:41:07.920 So this funding is enabling all. 0:41:07.719 --> 0:41:11.440 Of that and massive scale deployment of Passage. 0:41:11.520 --> 0:41:13.880 Okay, so people needed on the R and D side. 0:41:13.880 --> 0:41:15.800 On the sales side, I'm sure, and you're getting it 0:41:15.880 --> 0:41:16.920 into the data centers. 0:41:17.320 --> 0:41:20.400 What's your own business model? How do you charge ultimately 0:41:20.400 --> 0:41:21.920 the customers that you're looking to. I'm thinking of the 0:41:21.960 --> 0:41:22.640 hyper scalers. 0:41:23.880 --> 0:41:24.120 Yeah. 0:41:24.120 --> 0:41:27.000 On the Passage product side, we sell wafers, so we 0:41:27.080 --> 0:41:30.839 have a semiconductor fab partner. Those wafers ship from them, 0:41:31.239 --> 0:41:34.840 and we ultimately sell to the big semiconductor companies, companies 0:41:34.960 --> 0:41:39.320 like AMD, Intel, Nvidia, and also the cloud service providers 0:41:39.320 --> 0:41:41.960 who are building their own silicon. You've got Google Cloud 0:41:41.960 --> 0:41:45.799 with the TPU, Amazon Aws with Trainium, and so on. 0:41:45.920 --> 0:41:47.840 These are the kinds of companies that we partner with 0:41:47.920 --> 0:41:50.279 and we sell those wafers to them. What they do 0:41:50.400 --> 0:41:53.840 is they take their GPUs and their different processor chips 0:41:53.840 --> 0:41:57.080 and they scale them out on top of passage passages, 0:41:57.120 --> 0:42:00.040 this chessboard that links all of the chips optically and 0:42:00.120 --> 0:42:02.239 allows you to scale up to an entire three hundred 0:42:02.280 --> 0:42:08.319 millimeter diameter wafer and build absolutely massive computing clusters. So 0:42:08.440 --> 0:42:11.400 you can take a rays of these passages, these chessboards 0:42:11.600 --> 0:42:14.080 and scale them out to up to three hundred thousand nodes. 0:42:14.160 --> 0:42:15.760 Is the kind of thing that we're working on today. 0:42:16.560 --> 0:42:20.080 Same heat density as a nuclear reactor. Absolutely fascinating. 0:42:20.160 --> 0:42:22.319 Nick Harris, thanks for painting the picture telling us where 0:42:22.320 --> 0:42:23.799 your technology is going over at like. 0:42:23.800 --> 0:42:26.600 Matter, great hazard time with you. Meanwhile, that does it 0:42:26.640 --> 0:42:28.480 for this edition of bloom Beg Technology. You do not 0:42:28.560 --> 0:42:30.520 want to forget about our own podcast. 0:42:30.640 --> 0:42:33.319 You can get sped up on the terminal You're also 0:42:33.400 --> 0:42:35.760 consume you on Apple or Spotify on high Heart. Wherever 0:42:35.880 --> 0:42:38.520 you get your content, come repeat it with us. 0:42:38.640 --> 0:42:40.719 This is BLUEBG technology.