1 00:00:02,720 --> 00:00:06,000 Speaker 1: From the heart of where innovation, money and power COLLI 2 00:00:06,840 --> 00:00:11,360 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:11,400 --> 00:00:27,200 Speaker 1: Emily Jay. I'm Emily checking San Francisco and this is 4 00:00:27,240 --> 00:00:30,320 Speaker 1: Bloomberg Technology coming up in the next hour. Gas price 5 00:00:30,440 --> 00:00:33,720 Speaker 1: pain Uber and lift drivers take home pay plummeting as 6 00:00:33,800 --> 00:00:37,240 Speaker 1: gas prices shore Are the ride chain companies doing enough 7 00:00:37,360 --> 00:00:42,080 Speaker 1: to help? Plus? Google and Apple Maps can't escape politics? 8 00:00:42,159 --> 00:00:46,600 Speaker 1: How mapping technology has become increasingly complicated as Russia rains 9 00:00:46,640 --> 00:00:51,080 Speaker 1: down on Ukraine and relief efforts to help millions of 10 00:00:51,159 --> 00:00:53,960 Speaker 1: ukraining refugees and residents who have stayed behind. We're gonna 11 00:00:53,960 --> 00:00:57,640 Speaker 1: talk with flex Sport about the challenging logistics of providing 12 00:00:57,720 --> 00:01:02,240 Speaker 1: humanitarian a and how the war is royally global supply chains. 13 00:01:10,800 --> 00:01:15,119 Speaker 1: Russia's government is moving closer to seizing and even nationalizing 14 00:01:15,160 --> 00:01:18,080 Speaker 1: foreign owned companies that are leaving the market over the 15 00:01:18,120 --> 00:01:21,880 Speaker 1: invasion of Ukraine, while planning measures to coax others in disdaying. 16 00:01:22,760 --> 00:01:25,600 Speaker 1: Creton Harrison with us now to discuss. So Creton, what 17 00:01:26,680 --> 00:01:28,920 Speaker 1: what companies is Russia trying to take control of, or 18 00:01:28,959 --> 00:01:31,840 Speaker 1: even temporary control of, and how would the government actually 19 00:01:31,840 --> 00:01:34,240 Speaker 1: pull this off? Yeah, they're not they're not revealing a 20 00:01:34,240 --> 00:01:36,880 Speaker 1: lot of their plan here about what kinds of things 21 00:01:36,880 --> 00:01:39,000 Speaker 1: they would want to take over. You can make some 22 00:01:39,120 --> 00:01:42,800 Speaker 1: guesses based on there's there's even some public comments from 23 00:01:42,840 --> 00:01:45,479 Speaker 1: from officials in Russia that have been walked out by 24 00:01:45,480 --> 00:01:49,000 Speaker 1: other agencies about some of the aircraft that's in in 25 00:01:49,080 --> 00:01:52,120 Speaker 1: Russia right now that's owned by lessers and whether they 26 00:01:52,200 --> 00:01:54,640 Speaker 1: might see some of that. So that's just one example. 27 00:01:55,040 --> 00:01:57,160 Speaker 1: There's a Russian agency who is that don't know, we're 28 00:01:57,200 --> 00:02:00,280 Speaker 1: not going to say necessarily do that. That person spoke 29 00:02:00,280 --> 00:02:02,800 Speaker 1: out of turn. So this is a very confusing time. 30 00:02:02,840 --> 00:02:05,600 Speaker 1: But with what the action of the government would allow 31 00:02:05,640 --> 00:02:07,600 Speaker 1: them to do. Is it says that if there's a 32 00:02:07,600 --> 00:02:10,720 Speaker 1: company where uh, you know, you have you have Russian 33 00:02:10,840 --> 00:02:14,000 Speaker 1: members of a board and maybe that's for the local 34 00:02:14,040 --> 00:02:17,440 Speaker 1: operating unit or something like that, that that might be 35 00:02:17,760 --> 00:02:21,760 Speaker 1: a company that that that could be uh taken over, 36 00:02:22,360 --> 00:02:24,639 Speaker 1: uh at least on temporary basis. So this is this 37 00:02:24,720 --> 00:02:27,840 Speaker 1: is very very fuzzy and can be interpreted a lot 38 00:02:27,880 --> 00:02:29,760 Speaker 1: of different ways. It probably will be interpreted a lot 39 00:02:29,760 --> 00:02:32,240 Speaker 1: of different ways depending on what happens in the in 40 00:02:32,280 --> 00:02:35,040 Speaker 1: the weeks to come. If you're a company the this 41 00:02:35,240 --> 00:02:38,560 Speaker 1: operating in Russia was until very recently operating in Russia. 42 00:02:38,880 --> 00:02:41,600 Speaker 1: I guarantee you looking at this very seriously and trying 43 00:02:41,600 --> 00:02:43,920 Speaker 1: to figure out what it means for you. But all 44 00:02:43,960 --> 00:02:46,040 Speaker 1: the companies we've we've tried to reach out about this, 45 00:02:46,360 --> 00:02:49,760 Speaker 1: including uh Larry Culp, the CEO of a General Electric 46 00:02:49,760 --> 00:02:53,640 Speaker 1: who was on Bloomberg Television earlier today, are so far saying, uh, 47 00:02:53,680 --> 00:02:57,400 Speaker 1: they don't see any immediate concern of any assets seizure. 48 00:02:57,480 --> 00:02:58,919 Speaker 1: So this is this is something that's going to play 49 00:02:58,919 --> 00:03:01,239 Speaker 1: out for a while at this stage. And of course 50 00:03:01,280 --> 00:03:04,960 Speaker 1: we just reported on Goldman already moving employees out of 51 00:03:04,960 --> 00:03:09,160 Speaker 1: the country. What can companies do to avoid this? Faith Yeah, 52 00:03:09,200 --> 00:03:11,680 Speaker 1: I mean, as we've seen all week, you know, companies 53 00:03:11,680 --> 00:03:14,000 Speaker 1: have been very careful in their language about what they're 54 00:03:14,120 --> 00:03:17,239 Speaker 1: doing when they stop doing business and rushing. You see 55 00:03:17,280 --> 00:03:21,520 Speaker 1: the words suspended or paused quite a bit. In many cases. 56 00:03:21,720 --> 00:03:24,960 Speaker 1: McDonald's was a very prominent example of this. Companies are 57 00:03:24,960 --> 00:03:28,520 Speaker 1: continuing to pay employees at the local level. You can 58 00:03:28,600 --> 00:03:32,080 Speaker 1: think of that as one potential strategy here to avoid 59 00:03:32,080 --> 00:03:35,400 Speaker 1: getting nationalized. They're having assets c s because you can 60 00:03:35,480 --> 00:03:38,200 Speaker 1: argue that you're still in the country. You're still paying 61 00:03:38,400 --> 00:03:41,600 Speaker 1: Russian employees. You're still there as a business entity. You're 62 00:03:41,640 --> 00:03:44,640 Speaker 1: just not actually, you know, doing business at the moment, 63 00:03:44,720 --> 00:03:47,760 Speaker 1: but you plan to eventually, so that that maybe one 64 00:03:47,840 --> 00:03:50,640 Speaker 1: tack the companies are trying to take to protect their 65 00:03:50,680 --> 00:03:54,400 Speaker 1: long term interests here. Um. Ultimately, though, you know, if 66 00:03:54,440 --> 00:03:57,360 Speaker 1: you have money in in the Russian economy that you 67 00:03:57,400 --> 00:03:59,680 Speaker 1: can use to pay workers, at some point, you've got 68 00:03:59,680 --> 00:04:01,760 Speaker 1: to figure out how to replenish that that could run 69 00:04:01,760 --> 00:04:04,440 Speaker 1: out at some point depending on how long, uh, this 70 00:04:04,520 --> 00:04:08,600 Speaker 1: situation takes to unfold. Uh, you know, you you could 71 00:04:08,760 --> 00:04:10,880 Speaker 1: have a situation where companies that were trying to hang 72 00:04:10,920 --> 00:04:13,760 Speaker 1: on by paying employees might have to might have to 73 00:04:13,760 --> 00:04:18,400 Speaker 1: make another decision. All right, question again, what does this 74 00:04:18,440 --> 00:04:21,920 Speaker 1: mean for everyday people in Russia? Bloombergs, Creighton Harrison, thank 75 00:04:21,960 --> 00:04:26,160 Speaker 1: you for that context. Meantime, everyone feeling the pain at 76 00:04:26,200 --> 00:04:29,000 Speaker 1: the pump, especially drivers for Uber and Left as the 77 00:04:29,000 --> 00:04:32,280 Speaker 1: war in Ukraine drives gas prices in the US to 78 00:04:32,440 --> 00:04:36,880 Speaker 1: an all time high. Bloombergs Jackie Dablos as a story, Jackie, 79 00:04:36,880 --> 00:04:40,440 Speaker 1: in California, I saw prices as high as seven dollars, 80 00:04:40,520 --> 00:04:44,599 Speaker 1: I mean, unprecedented. How are drivers dealing with this, well, 81 00:04:44,839 --> 00:04:48,919 Speaker 1: this is truly taking um a huge cut out of 82 00:04:48,920 --> 00:04:53,520 Speaker 1: their take home pay, and the impact has really been indiscriminate. 83 00:04:53,920 --> 00:04:57,640 Speaker 1: We saw drivers that are driving fuel efficient cars a 84 00:04:57,760 --> 00:05:01,679 Speaker 1: prius even that are seeing their gas bill go from 85 00:05:01,720 --> 00:05:06,080 Speaker 1: ten percent to six of their net earnings. This is 86 00:05:06,120 --> 00:05:10,320 Speaker 1: just completely unprecedented and it's really making them reevaluate. Is 87 00:05:10,400 --> 00:05:15,000 Speaker 1: this side hustle even worth it? And what are the 88 00:05:15,000 --> 00:05:18,359 Speaker 1: companies doing about it? Are they doing enough? What drivers 89 00:05:18,400 --> 00:05:20,960 Speaker 1: tell me is that it's not enough. You know, they 90 00:05:21,160 --> 00:05:25,520 Speaker 1: have partnerships with this app, for example, called get Upside, 91 00:05:25,520 --> 00:05:28,120 Speaker 1: and it's effectively a rewards app that gives you cash 92 00:05:28,200 --> 00:05:31,599 Speaker 1: back for your fuel purchases. But drivers tell me that 93 00:05:31,640 --> 00:05:34,640 Speaker 1: this is really a laughable solution and it it's not sustainable. 94 00:05:34,760 --> 00:05:38,200 Speaker 1: As you said, gas prices are upwards of seven dollars. 95 00:05:38,279 --> 00:05:40,599 Speaker 1: You know. Once driver spoke with me and he said 96 00:05:40,640 --> 00:05:43,679 Speaker 1: he was paying upwards of five dollars. He's losing money 97 00:05:43,839 --> 00:05:46,719 Speaker 1: every ride he takes. He does not have the option 98 00:05:46,760 --> 00:05:49,640 Speaker 1: to quit the app, but it does beg the question 99 00:05:50,040 --> 00:05:53,040 Speaker 1: should companies be on the hook for helping them more, 100 00:05:53,160 --> 00:05:57,000 Speaker 1: especially because as independent contractors, they're the ones footing the 101 00:05:57,000 --> 00:06:02,320 Speaker 1: bill for every single expense. Now, the President himself has said, Look, 102 00:06:02,880 --> 00:06:05,600 Speaker 1: the American people are going to have to be prepared 103 00:06:05,640 --> 00:06:07,880 Speaker 1: for a certain amount of sacrifice and a certain amount 104 00:06:07,880 --> 00:06:10,240 Speaker 1: of pain if the United States is going to take 105 00:06:10,600 --> 00:06:14,160 Speaker 1: this kind of a stand against Russia. In talking to drivers, 106 00:06:14,440 --> 00:06:19,200 Speaker 1: do they understand do they sympathize with with the Ukrainian 107 00:06:19,240 --> 00:06:21,920 Speaker 1: people and what the United States is trying to do here? 108 00:06:22,520 --> 00:06:25,320 Speaker 1: There definitely is a huge tension there. You know, they 109 00:06:25,480 --> 00:06:30,200 Speaker 1: completely sympathize. However, they've been putting up with high gas 110 00:06:30,240 --> 00:06:34,080 Speaker 1: prices and the impacts of inflation for months. It's been 111 00:06:34,160 --> 00:06:38,080 Speaker 1: acknowledged by you know, even uber CEO. It's not the 112 00:06:38,120 --> 00:06:41,120 Speaker 1: first time that they've raised the alarm about the impact 113 00:06:41,160 --> 00:06:43,359 Speaker 1: of gas prices. And this just seems to be a 114 00:06:43,440 --> 00:06:47,000 Speaker 1: real breaking point for so many And so while they 115 00:06:47,000 --> 00:06:50,480 Speaker 1: I think they understand the broader plight of the Ukrainian 116 00:06:50,560 --> 00:06:54,600 Speaker 1: people and the complex nature of the conflict, um, I 117 00:06:54,640 --> 00:06:57,640 Speaker 1: think at this point they have enough options out there 118 00:06:57,680 --> 00:07:01,800 Speaker 1: within the gig economy from door dash in to cart lift. Uh, 119 00:07:01,839 --> 00:07:04,800 Speaker 1: you know, there are other places to go um even 120 00:07:04,839 --> 00:07:07,400 Speaker 1: outside the gig economy as well. So it's something they're considering, 121 00:07:08,040 --> 00:07:10,080 Speaker 1: And what does that mean for consumers and riders, are 122 00:07:10,160 --> 00:07:13,560 Speaker 1: prices going to go up? You know, we've already seen 123 00:07:13,640 --> 00:07:16,120 Speaker 1: high fares for a while due to the driver's shortage 124 00:07:16,160 --> 00:07:19,680 Speaker 1: and gas prices. What Uber had to say, for example, uh, 125 00:07:19,920 --> 00:07:26,160 Speaker 1: is that for every increase from today's average gas price levels, 126 00:07:26,760 --> 00:07:31,160 Speaker 1: because consumers will only see a one percent increase in fares. Now, 127 00:07:31,200 --> 00:07:35,000 Speaker 1: that may sound small, but when you take into account 128 00:07:35,200 --> 00:07:38,320 Speaker 1: how quickly demand is coming back and supply is not 129 00:07:38,520 --> 00:07:42,520 Speaker 1: shifting as quickly to meet that demand, we're going to 130 00:07:42,600 --> 00:07:45,880 Speaker 1: see elevated fares for at least a few more months 131 00:07:45,960 --> 00:07:49,040 Speaker 1: until they're able to sort through that supply issue. And yes, 132 00:07:49,120 --> 00:07:52,840 Speaker 1: gas prices will eventually start to trickle down to how 133 00:07:52,920 --> 00:07:56,400 Speaker 1: much we're paying um in fares overall as well. All right, 134 00:07:56,560 --> 00:07:59,320 Speaker 1: Jackie Dabolos who covers Uber and lift for I thank 135 00:07:59,440 --> 00:08:02,800 Speaker 1: Jackie for that update. Coming up, Apple and Google maps 136 00:08:02,840 --> 00:08:05,880 Speaker 1: in the crosshairs of the war on Ukraine. How space, 137 00:08:06,160 --> 00:08:10,800 Speaker 1: satellite and big tech companies are navigating geo political termoil. 138 00:08:11,120 --> 00:08:38,640 Speaker 1: That's next, This is Blueberg. Soon after Russia launched its 139 00:08:38,679 --> 00:08:41,959 Speaker 1: invasion of Ukraine, Google and Apple disabled key features of 140 00:08:42,000 --> 00:08:45,000 Speaker 1: their map services. They're including real time vehicle and foot 141 00:08:45,040 --> 00:08:48,839 Speaker 1: traffic data. This out of concern that live insights into 142 00:08:48,880 --> 00:08:51,640 Speaker 1: what streets or shops were busy could be exploited by 143 00:08:51,720 --> 00:08:55,520 Speaker 1: Russian forces to harm Ukrainian citizens. In fact, the nuances 144 00:08:55,640 --> 00:08:58,640 Speaker 1: of mapping has become significantly more of a political hot 145 00:08:58,679 --> 00:09:00,959 Speaker 1: potato in just the last two weeks. I want to 146 00:09:01,000 --> 00:09:03,640 Speaker 1: talk about that in more. Chad Anderson, founder and managing 147 00:09:03,679 --> 00:09:06,679 Speaker 1: partner of Space Capital, in early stage venture capital from 148 00:09:06,679 --> 00:09:10,600 Speaker 1: that invests exclusively in space based technologies and chat. Many 149 00:09:10,600 --> 00:09:14,760 Speaker 1: of these space based technologies are delivering information to these 150 00:09:14,800 --> 00:09:18,079 Speaker 1: big tech giants that enabled them to change these digital 151 00:09:18,120 --> 00:09:21,200 Speaker 1: maps in real time. What do you make of the 152 00:09:21,400 --> 00:09:27,320 Speaker 1: this new if you will, digital battlefield? Certainly true. The 153 00:09:27,400 --> 00:09:31,079 Speaker 1: Russian invasion of Ukraine has really spotlighted the strategic importance 154 00:09:31,080 --> 00:09:36,040 Speaker 1: of space infrastructure for the US and are allied satellite constellations. 155 00:09:36,280 --> 00:09:40,360 Speaker 1: Spaces is clearly a target and among the critical domains 156 00:09:40,360 --> 00:09:43,800 Speaker 1: to protect as this as this UM conflict unfolds. You 157 00:09:43,800 --> 00:09:46,360 Speaker 1: know with the Google Maps UM and and and Apple 158 00:09:46,400 --> 00:09:50,760 Speaker 1: Maps scenario, they this is some of the first information 159 00:09:50,800 --> 00:09:54,280 Speaker 1: that we got about UM. The Russian invasion UM came 160 00:09:54,320 --> 00:09:58,440 Speaker 1: about because of the traffic information from Google Maps. So um, 161 00:09:58,480 --> 00:10:01,440 Speaker 1: you know, these companies have have decided to turn off 162 00:10:01,520 --> 00:10:04,120 Speaker 1: that functionality. They're still getting turned by turn directions, but 163 00:10:04,160 --> 00:10:07,600 Speaker 1: they've turned off the traffic and foot traffic functionality because 164 00:10:08,120 --> 00:10:11,920 Speaker 1: it can alert the other side as to um where 165 00:10:12,559 --> 00:10:16,680 Speaker 1: Ukrainians are. Um and and as well it goes both ways. 166 00:10:16,840 --> 00:10:20,640 Speaker 1: But they've decided to turn it off to protect those 167 00:10:20,679 --> 00:10:23,679 Speaker 1: those citizens in the Kuran. Well and at what point 168 00:10:23,679 --> 00:10:28,079 Speaker 1: does that potentially undermine Ukrainian effort to resist the invasion 169 00:10:28,320 --> 00:10:31,160 Speaker 1: or flee to safety? I mean, have we outsourced too 170 00:10:31,240 --> 00:10:35,760 Speaker 1: much power, too big tech. Well, they've turned it off. 171 00:10:35,760 --> 00:10:40,680 Speaker 1: From a global perspective, UM, I'm not privy to who 172 00:10:40,760 --> 00:10:44,480 Speaker 1: they've turned it on and off for, so UM, I 173 00:10:44,480 --> 00:10:49,679 Speaker 1: imagine that companies have um this type of functionality and capability. 174 00:10:50,640 --> 00:10:53,040 Speaker 1: So let's talk about the space companies that are getting 175 00:10:53,160 --> 00:10:57,920 Speaker 1: dragged into this mess. These satellite technology companies that you 176 00:10:57,960 --> 00:11:01,679 Speaker 1: know have been floating around owned relatively quiet outside of 177 00:11:01,720 --> 00:11:04,240 Speaker 1: the ear It's atmosphere, but suddenly find themselves in the 178 00:11:04,280 --> 00:11:09,439 Speaker 1: middle of this geopolitical mess. Yeah. I mean, this crisis 179 00:11:09,480 --> 00:11:14,280 Speaker 1: has really highlighted the growing capabilities of commercial satellite companies. UH, 180 00:11:14,280 --> 00:11:19,000 Speaker 1: companies like max Are and Planet and Black Sky are 181 00:11:19,080 --> 00:11:22,400 Speaker 1: providing observations of what's happening on the ground, so we're 182 00:11:22,400 --> 00:11:26,480 Speaker 1: getting really ground truth and this is vital information for 183 00:11:26,520 --> 00:11:30,400 Speaker 1: anyone trying to keep up UM from a humanitarian perspective 184 00:11:30,520 --> 00:11:35,960 Speaker 1: or monitoring the situation UM military, civilian. This is giving us, 185 00:11:36,000 --> 00:11:37,920 Speaker 1: you know, without the spin, we're able to see with 186 00:11:37,960 --> 00:11:41,079 Speaker 1: our own eyes what's actually happening on the ground. And 187 00:11:41,320 --> 00:11:44,360 Speaker 1: I think that the amount of data that's available today 188 00:11:44,600 --> 00:11:48,640 Speaker 1: is really unprecedented. This open source information is is really 189 00:11:48,640 --> 00:11:52,280 Speaker 1: important for everyone involved, including the reporters that are on 190 00:11:52,320 --> 00:11:54,920 Speaker 1: the ground UM looking to tie the pieces of the 191 00:11:54,960 --> 00:11:59,680 Speaker 1: story together. We also saw Elon Musk's starlink very publicly 192 00:12:00,160 --> 00:12:04,120 Speaker 1: to the aid of the Ukrainian people, and it just 193 00:12:04,320 --> 00:12:08,000 Speaker 1: sort of drives a point home about how powerful and 194 00:12:08,040 --> 00:12:10,960 Speaker 1: impactful these technologies can be in terms of just changing 195 00:12:11,000 --> 00:12:15,520 Speaker 1: the shape of of modern communication. You know what kind 196 00:12:15,559 --> 00:12:18,880 Speaker 1: of risks do these companies face and how are they 197 00:12:19,000 --> 00:12:25,240 Speaker 1: navigating these challenges internally? Certainly, I mean SpaceX turn Starling 198 00:12:25,400 --> 00:12:29,160 Speaker 1: on their satellite communications constellation made it available in the 199 00:12:29,280 --> 00:12:34,600 Speaker 1: Ukraine UM upon request, and it's really showcasing you know 200 00:12:35,280 --> 00:12:37,920 Speaker 1: what a capability like this can provide in terms of 201 00:12:38,280 --> 00:12:43,479 Speaker 1: redundancy and capability. I mean they're providing vital communications services 202 00:12:43,640 --> 00:12:49,680 Speaker 1: UM where in a previous era, UM the invading country 203 00:12:49,679 --> 00:12:54,040 Speaker 1: could just attack the fiber lines and and or attack 204 00:12:54,080 --> 00:12:56,280 Speaker 1: in some other way and shut off the Internet. So 205 00:12:56,320 --> 00:13:01,320 Speaker 1: we really have resilient communications and can activity here, which 206 00:13:01,400 --> 00:13:05,400 Speaker 1: is also essential in terms of getting vital fact truth, 207 00:13:05,559 --> 00:13:08,680 Speaker 1: you know, like from the source information. And we talked 208 00:13:08,679 --> 00:13:11,559 Speaker 1: about a lot about this in our our latest thesis paper, 209 00:13:11,600 --> 00:13:15,040 Speaker 1: this dot com Playbook. The nature of satellite communications is 210 00:13:15,080 --> 00:13:18,200 Speaker 1: going through a fundamental shift. I mean it's going from 211 00:13:18,240 --> 00:13:21,920 Speaker 1: being a niche comms product making up about less than 212 00:13:21,960 --> 00:13:26,160 Speaker 1: a percent of global broadband Internet to being a Internet 213 00:13:26,160 --> 00:13:29,640 Speaker 1: backbone in space where we could see twenty times the 214 00:13:29,679 --> 00:13:33,680 Speaker 1: capacity come online in the next five years at latency 215 00:13:33,760 --> 00:13:36,920 Speaker 1: that rivals terrestrial and there's not much that Russia can 216 00:13:36,960 --> 00:13:40,640 Speaker 1: do about it. From a practical perspective. Um Elon Muska 217 00:13:40,720 --> 00:13:43,640 Speaker 1: said that they can shake their fist at the sky. UM. 218 00:13:43,679 --> 00:13:46,560 Speaker 1: You know, Russia's trying to jam those signals now, but 219 00:13:46,960 --> 00:13:49,400 Speaker 1: UM SpaceX is able to overcome that with a simple 220 00:13:49,440 --> 00:13:53,400 Speaker 1: software update, So you know. Cybersecurity is also a key 221 00:13:53,600 --> 00:13:57,200 Speaker 1: a key area here for companies and and military as well. 222 00:13:58,000 --> 00:14:01,559 Speaker 1: It's really a fascint nating domain given that a lot 223 00:14:01,559 --> 00:14:04,439 Speaker 1: of these companies are often fielding requests from governments to 224 00:14:04,520 --> 00:14:08,040 Speaker 1: draw the maps a certain way than sometimes showing different 225 00:14:08,080 --> 00:14:11,520 Speaker 1: maps in different countries, and you wonder how they can, 226 00:14:11,840 --> 00:14:14,960 Speaker 1: you know, overcome some of the transparency or lack of 227 00:14:15,000 --> 00:14:20,080 Speaker 1: transparency issues there. Chat Anderson Foundery, managing partner of Space Capital. 228 00:14:20,200 --> 00:14:34,520 Speaker 1: Thank you for helping us work through that time. Now 229 00:14:34,560 --> 00:14:38,120 Speaker 1: for our crypto report. With bitcoin dropping back below forts 230 00:14:38,120 --> 00:14:41,960 Speaker 1: in eracing nearly all gains from the optimism surrounding President 231 00:14:42,000 --> 00:14:46,720 Speaker 1: Biden's executive order on crypto, Bitcoin and other cryptocurrencies are 232 00:14:46,720 --> 00:14:50,800 Speaker 1: now falling, with stocks amid high inflation data continued ga 233 00:14:50,840 --> 00:14:54,600 Speaker 1: political turmoil. As we continue to watch this situation in Ukraine, 234 00:14:54,680 --> 00:14:58,000 Speaker 1: I want to get all get more on this and 235 00:14:58,120 --> 00:15:00,760 Speaker 1: the future of their new crypto fund. Michelle Buy a 236 00:15:00,800 --> 00:15:06,200 Speaker 1: partner at Sequoia Capital, which recently launched such a new fund. Michelle, 237 00:15:06,200 --> 00:15:08,560 Speaker 1: thank you so much for joining us. Of course, Sequoia 238 00:15:08,720 --> 00:15:10,680 Speaker 1: is not new to crypto investing, but this is the 239 00:15:10,680 --> 00:15:14,360 Speaker 1: first time you've launched a sector specific fund. Why and 240 00:15:14,400 --> 00:15:17,880 Speaker 1: why now? Yes, thank you so much for having the Emily, 241 00:15:17,920 --> 00:15:20,680 Speaker 1: it's great to be here. We've been investing in crypto 242 00:15:20,760 --> 00:15:24,960 Speaker 1: for several years, over five years now, and in getting 243 00:15:24,960 --> 00:15:28,120 Speaker 1: feedback from our founders about the best products to serve them, 244 00:15:28,400 --> 00:15:31,360 Speaker 1: realize that we served equity based crypto company is very 245 00:15:31,400 --> 00:15:34,800 Speaker 1: well with our seed, venture and growth products all the 246 00:15:34,840 --> 00:15:36,400 Speaker 1: way from seed to I p O, but that we 247 00:15:36,440 --> 00:15:39,160 Speaker 1: could do more for token based crypto companies. And so 248 00:15:39,280 --> 00:15:41,720 Speaker 1: this new fund is allowing us to take a more 249 00:15:41,760 --> 00:15:45,080 Speaker 1: active management role with our liquid tokens and will complement 250 00:15:45,080 --> 00:15:47,600 Speaker 1: our broader efforts. And we thought this was a great 251 00:15:47,640 --> 00:15:50,160 Speaker 1: time because it was, you know, given driven by feedback 252 00:15:50,160 --> 00:15:52,880 Speaker 1: from our founders, but also because cryptos at such an 253 00:15:52,880 --> 00:15:56,800 Speaker 1: inflection point in terms of both users and talent entering 254 00:15:56,800 --> 00:15:58,880 Speaker 1: the space. We think we're just at the beginning of 255 00:15:59,240 --> 00:16:01,920 Speaker 1: an s curve that will see pick up dramatically over 256 00:16:01,920 --> 00:16:05,840 Speaker 1: the next decade. Now. Sekoia has invested in bitcoin and 257 00:16:05,880 --> 00:16:09,600 Speaker 1: etherium itself, for example, but also in companies like f 258 00:16:09,720 --> 00:16:13,520 Speaker 1: t X. When it comes to the token side, water 259 00:16:13,640 --> 00:16:19,520 Speaker 1: tokens and blockchains that you find particularly interesting, it's a 260 00:16:19,560 --> 00:16:22,720 Speaker 1: great question. I think we watch the developer momentum on 261 00:16:22,800 --> 00:16:25,520 Speaker 1: each layer one blockchain and several of the layer two's 262 00:16:25,760 --> 00:16:29,040 Speaker 1: very closely. That's an important signal for us. And so 263 00:16:29,360 --> 00:16:32,280 Speaker 1: bitcoin has a particular type of community and a particular 264 00:16:32,360 --> 00:16:34,520 Speaker 1: use case. You see something's being built out with a 265 00:16:34,720 --> 00:16:37,640 Speaker 1: lightning network. Uh that one of the companies we are 266 00:16:37,760 --> 00:16:41,280 Speaker 1: privileged to partner with Square now Block is very involved 267 00:16:41,320 --> 00:16:45,400 Speaker 1: with as well as then on Ethereum tremendous applications development 268 00:16:45,520 --> 00:16:49,640 Speaker 1: and decentralized finance and f t S web applications. And 269 00:16:49,640 --> 00:16:51,960 Speaker 1: then we've also seen a lot of developer uptick on 270 00:16:52,160 --> 00:16:56,360 Speaker 1: Salana and some newer chains like Avalanche near Cosmos, and 271 00:16:56,400 --> 00:16:58,960 Speaker 1: so we watch all of that very closely, and that's 272 00:16:58,960 --> 00:17:01,600 Speaker 1: how we determine where we wanna, you know, double down 273 00:17:01,680 --> 00:17:04,840 Speaker 1: or spend our time in terms of those different ecosystems. Now, 274 00:17:04,920 --> 00:17:08,800 Speaker 1: last year of Sequoia's new investments in as I understand 275 00:17:08,800 --> 00:17:10,720 Speaker 1: at the US and Europe or in crypto, that's a 276 00:17:10,760 --> 00:17:14,400 Speaker 1: really big part of the pie for a long time 277 00:17:14,480 --> 00:17:18,560 Speaker 1: more traditional tech venture capital firm. Do you see that 278 00:17:18,680 --> 00:17:22,159 Speaker 1: portion of the pie rising into Is this going to 279 00:17:22,240 --> 00:17:27,360 Speaker 1: become an even bigger part of Sequoia's portfolio? I personally 280 00:17:27,440 --> 00:17:29,760 Speaker 1: do as someone who spends all my time in crypto. 281 00:17:29,960 --> 00:17:34,320 Speaker 1: I think there are just tremendously talented founders entering the 282 00:17:34,400 --> 00:17:38,600 Speaker 1: space and more and more engineers, developers, designers who are 283 00:17:38,600 --> 00:17:43,000 Speaker 1: excited about building in all aspects of crypto, and so 284 00:17:43,119 --> 00:17:45,840 Speaker 1: I think that will only increase over time. We have 285 00:17:45,920 --> 00:17:48,800 Speaker 1: Sequoia have a thesis that that crypto is going to 286 00:17:48,840 --> 00:17:53,199 Speaker 1: impact both the financial sector as well as broader Internet services, 287 00:17:53,480 --> 00:17:58,160 Speaker 1: so that's consumer and enterprise, and so we expect crypto 288 00:17:58,200 --> 00:18:01,320 Speaker 1: to eventually be uh in all of those sectors. And 289 00:18:01,440 --> 00:18:03,680 Speaker 1: I would I would expect that everyone at Sequoia is 290 00:18:03,720 --> 00:18:07,600 Speaker 1: eventually a crypto investor. You've talked about how this is 291 00:18:07,600 --> 00:18:10,840 Speaker 1: gonna be very different from traditional venture capital investing. Tell 292 00:18:10,920 --> 00:18:13,240 Speaker 1: us a little bit more about the fund structure. How 293 00:18:13,280 --> 00:18:16,840 Speaker 1: are your investments in in crypto and the cryptocurrency industry? 294 00:18:16,840 --> 00:18:19,360 Speaker 1: Is going to be different than what we've seen Tekoia 295 00:18:19,440 --> 00:18:24,000 Speaker 1: do before. Yes, So what's interesting about investing in more 296 00:18:24,040 --> 00:18:27,720 Speaker 1: traditional equity based startups is that you effectively get a 297 00:18:27,720 --> 00:18:29,760 Speaker 1: piece of paper that says you own a portion of 298 00:18:29,760 --> 00:18:31,639 Speaker 1: a company, and you don't really do much with that 299 00:18:31,680 --> 00:18:34,040 Speaker 1: piece of paper. Over the next several years, you help 300 00:18:34,080 --> 00:18:36,800 Speaker 1: the company grow, of course, but the piece of paper 301 00:18:36,880 --> 00:18:40,239 Speaker 1: is sort of irrelevant. In crypto, it's quite different in 302 00:18:40,240 --> 00:18:43,160 Speaker 1: that if you are getting a token, you can actually 303 00:18:43,560 --> 00:18:45,840 Speaker 1: use that token to the benefit of the company or 304 00:18:45,880 --> 00:18:48,680 Speaker 1: the project. And so what we can do now more 305 00:18:48,800 --> 00:18:52,480 Speaker 1: flexibly is be able to, for instance, steak our tokens 306 00:18:52,480 --> 00:18:54,880 Speaker 1: to help secure a proof of state network. We could 307 00:18:54,880 --> 00:18:58,280 Speaker 1: provide liquidity to protocols uh and just do a lot 308 00:18:58,320 --> 00:19:02,880 Speaker 1: more activity with our token then you would with an equity. 309 00:19:03,200 --> 00:19:05,800 Speaker 1: So obviously we've seen a ton of activity in the 310 00:19:05,800 --> 00:19:08,199 Speaker 1: crypto space. We've seen the power of crypto to be 311 00:19:08,320 --> 00:19:11,640 Speaker 1: used to support war efforts. In the Ukraine, for example, 312 00:19:11,680 --> 00:19:15,120 Speaker 1: there's concerned about crypto being used by Russians who should 313 00:19:15,119 --> 00:19:19,080 Speaker 1: be facing sanctions to circumvent those sanctions. What's your take 314 00:19:19,160 --> 00:19:22,480 Speaker 1: on how the war on Ukraine is impacting the crypto 315 00:19:22,760 --> 00:19:27,240 Speaker 1: space and where this is headed. Yeah, well, first, I mean, 316 00:19:27,680 --> 00:19:30,640 Speaker 1: we are all heartbroken by what we're watching. It's certainly 317 00:19:30,840 --> 00:19:34,040 Speaker 1: HiT's very close to home. Sequoia has Ukrainians who have 318 00:19:34,280 --> 00:19:38,080 Speaker 1: Ukrainian family, we have companies who have you know, employees 319 00:19:38,160 --> 00:19:41,440 Speaker 1: in Ukraine, and of course many users, and so it's 320 00:19:41,480 --> 00:19:44,240 Speaker 1: something that we watch every day and our heart goes 321 00:19:44,280 --> 00:19:45,639 Speaker 1: out to all of them, and we do all that 322 00:19:45,680 --> 00:19:48,520 Speaker 1: we can. We're really proud of the way that our 323 00:19:48,600 --> 00:19:52,040 Speaker 1: crypto and other companies have stepped up to support all 324 00:19:52,119 --> 00:19:55,280 Speaker 1: the efforts. So I've worked very closely with Sam and 325 00:19:55,320 --> 00:19:57,919 Speaker 1: the team at f t X. They've gone above and 326 00:19:57,960 --> 00:20:00,760 Speaker 1: beyond to both donate to you, creating and users on 327 00:20:00,760 --> 00:20:03,760 Speaker 1: the platform, as well as comply with all sanctions, which 328 00:20:03,760 --> 00:20:06,399 Speaker 1: they are very capable of doing. It's often a misnomer that, 329 00:20:06,640 --> 00:20:10,360 Speaker 1: you know, cryptocompanies can't They can certainly comply with sanctions 330 00:20:10,440 --> 00:20:12,240 Speaker 1: and and they and all the companies we work with 331 00:20:12,320 --> 00:20:15,639 Speaker 1: will um and so we are. And then there are 332 00:20:15,680 --> 00:20:19,480 Speaker 1: other companies. Airbnb has been, you know, offering housing and 333 00:20:19,520 --> 00:20:23,000 Speaker 1: so folks are doing everything that they can to support 334 00:20:23,880 --> 00:20:28,440 Speaker 1: Ukraine and comply with all all of the efforts for sanctions. 335 00:20:29,160 --> 00:20:32,600 Speaker 1: And do you look at cryptocurrency as a safe haven 336 00:20:32,680 --> 00:20:36,560 Speaker 1: or a safer asset than a traditional equity in this moment? 337 00:20:36,640 --> 00:20:39,640 Speaker 1: I mean, we've we saw some optimism around at least 338 00:20:39,680 --> 00:20:44,080 Speaker 1: the way bitcoin was trading. We've seen that be wiped away. 339 00:20:44,160 --> 00:20:46,560 Speaker 1: We've seen a lot of volatility. You know, how should 340 00:20:46,600 --> 00:20:48,840 Speaker 1: we make sense of cryptocurrency as an asset? How is 341 00:20:48,840 --> 00:20:53,040 Speaker 1: Tequoia making sense of cryptocurrency as an asset. I think 342 00:20:53,040 --> 00:20:56,240 Speaker 1: we're in this interesting moment where all of crypto gets 343 00:20:56,320 --> 00:21:00,880 Speaker 1: painted by many investors with a broad brush, when as 344 00:21:01,280 --> 00:21:05,040 Speaker 1: the world more comes to understand crypto will see that 345 00:21:05,560 --> 00:21:09,280 Speaker 1: assets are quite different. And so the volatility that you 346 00:21:09,320 --> 00:21:11,480 Speaker 1: see with bitcoin or what you're buying the bitcoin is 347 00:21:11,560 --> 00:21:13,800 Speaker 1: very different than what you're buying with an application token 348 00:21:14,200 --> 00:21:16,680 Speaker 1: or any other type of you know, crypto asset, whether 349 00:21:16,680 --> 00:21:19,600 Speaker 1: it's an n f T, etcetera. And so I think 350 00:21:20,359 --> 00:21:23,359 Speaker 1: there's you can certainly look at the volatility and you 351 00:21:23,400 --> 00:21:26,200 Speaker 1: can say, you know, is bitcoin trading more like inequity? 352 00:21:26,240 --> 00:21:28,439 Speaker 1: Is a trading more like a commodity? How should it trade? 353 00:21:28,720 --> 00:21:31,159 Speaker 1: But the truth is that we're just very early in 354 00:21:31,200 --> 00:21:35,960 Speaker 1: the world understanding bitcoin and broader cryptocurrencies, and I think 355 00:21:35,960 --> 00:21:38,960 Speaker 1: the way those assets trade over time will change a lot. 356 00:21:40,240 --> 00:21:43,640 Speaker 1: All Right, Michelle buy a partner at Sequoia Capital, Thank 357 00:21:43,680 --> 00:21:46,480 Speaker 1: you fascinating. We'll be watching the move Sequoia makes in 358 00:21:46,520 --> 00:21:50,960 Speaker 1: this space. Well, Stripe is announcing they're launching payment support 359 00:21:50,960 --> 00:21:55,000 Speaker 1: for crypto businesses, including exchange whallet's and n f T marketplaces. 360 00:21:55,080 --> 00:21:57,560 Speaker 1: They'll also be partnering with f t X and f 361 00:21:57,640 --> 00:22:02,240 Speaker 1: t X c US to improve pipes know your customer protocols. 362 00:22:02,320 --> 00:22:04,880 Speaker 1: We had a chat about crypto Astrike president John Collison 363 00:22:04,920 --> 00:22:06,800 Speaker 1: a few months back. Take a listen to what he 364 00:22:06,800 --> 00:22:09,719 Speaker 1: had to say. One thing we're really hung up on 365 00:22:09,960 --> 00:22:13,840 Speaker 1: is of commerce today is cross border. That's it like. 366 00:22:14,000 --> 00:22:15,879 Speaker 1: It feels like it should be much higher, especially on 367 00:22:15,920 --> 00:22:17,720 Speaker 1: the Internet where it's so easy to have a cross 368 00:22:17,760 --> 00:22:22,360 Speaker 1: border interactions, and so crypto is one very exciting, uh 369 00:22:22,680 --> 00:22:27,240 Speaker 1: direction for for for trying to solve that. Coming up, 370 00:22:27,280 --> 00:22:29,320 Speaker 1: we're going to talk about Web three, mixed reality and 371 00:22:29,359 --> 00:22:53,159 Speaker 1: the metaverse. That is next. This is Bloomer. Welcome back 372 00:22:53,200 --> 00:22:55,480 Speaker 1: to Bloomberg Technology and Emily Changing in San Francisco. Get 373 00:22:55,480 --> 00:22:58,400 Speaker 1: ready for the launch of Magically to The company has 374 00:22:58,520 --> 00:23:03,560 Speaker 1: raised million dollars and funding shifted its focus to enterprise customers. 375 00:23:03,600 --> 00:23:06,159 Speaker 1: I want to talk more about that journey with Peggy Johnson, 376 00:23:06,200 --> 00:23:09,600 Speaker 1: the CEO of Magically. Peggy, thank you so much for 377 00:23:09,720 --> 00:23:12,600 Speaker 1: joining us. So we're looking at the latest iteration and 378 00:23:12,640 --> 00:23:16,320 Speaker 1: improvements on mL one. What are some key changes you're 379 00:23:16,359 --> 00:23:20,480 Speaker 1: making with the latest version of the technology. Thanks for 380 00:23:20,520 --> 00:23:23,480 Speaker 1: having me back, Emily and um the latest version is 381 00:23:24,840 --> 00:23:28,520 Speaker 1: focused on enterprise. In FACK, it's purpose built for enterprise 382 00:23:28,960 --> 00:23:33,159 Speaker 1: and what we heard that folks in the areas of healthcare, 383 00:23:33,359 --> 00:23:37,560 Speaker 1: defense and manufacturing needed we're a bigger field of use, 384 00:23:37,560 --> 00:23:39,920 Speaker 1: so we've doubled that field of view. That's the area 385 00:23:40,000 --> 00:23:43,480 Speaker 1: that you can place the digital content within. We've also 386 00:23:43,560 --> 00:23:47,080 Speaker 1: improved the optics from one end to the other. There's 387 00:23:47,119 --> 00:23:52,800 Speaker 1: the there's better text ledgeability, uh, the images crisper and clearer. Um. 388 00:23:52,960 --> 00:23:56,000 Speaker 1: So we've we've done a lot to focus on the 389 00:23:56,000 --> 00:23:59,200 Speaker 1: improvements that were needed to meet the specific use cases 390 00:23:59,280 --> 00:24:04,760 Speaker 1: in those three areas. So what are the market opportunity here? 391 00:24:04,920 --> 00:24:08,480 Speaker 1: Who do you see using this? Well? I d C 392 00:24:08,680 --> 00:24:11,280 Speaker 1: says the market opportunity and enterprise a r S thirty 393 00:24:11,359 --> 00:24:16,520 Speaker 1: nine billion dollars by but the real near term opportunity 394 00:24:16,560 --> 00:24:20,560 Speaker 1: is in those three areas. So, for instance, in healthcare, 395 00:24:20,760 --> 00:24:23,199 Speaker 1: we are making the device able to take into the 396 00:24:23,240 --> 00:24:27,320 Speaker 1: operating room and doctors can now wear it during surgery 397 00:24:27,320 --> 00:24:29,640 Speaker 1: because they can still see the patient in front of them, 398 00:24:29,680 --> 00:24:32,240 Speaker 1: but they can hang a variety of screens around them 399 00:24:32,640 --> 00:24:37,600 Speaker 1: to check the patient's vitals. We've also changed the orientation 400 00:24:37,640 --> 00:24:40,200 Speaker 1: of the field of view to be more up and down, 401 00:24:40,280 --> 00:24:42,920 Speaker 1: so they don't have as much body movement. They can 402 00:24:42,960 --> 00:24:45,240 Speaker 1: just glance up, see the vitals, and look back down 403 00:24:45,840 --> 00:24:49,840 Speaker 1: at the patient. In defense, we have a variety of 404 00:24:49,960 --> 00:24:54,360 Speaker 1: use cases, largely around training and command and control scenarios. 405 00:24:54,720 --> 00:24:58,520 Speaker 1: And then in manufacturing frontline workers gives them the ability, 406 00:24:59,160 --> 00:25:02,439 Speaker 1: um really to be hands free and continue to do 407 00:25:02,520 --> 00:25:05,720 Speaker 1: their job, but to have digital content put in front 408 00:25:05,760 --> 00:25:08,400 Speaker 1: of their eyes that can help them do their job better. 409 00:25:09,440 --> 00:25:12,919 Speaker 1: Meta's Oculus headset is obviously the market leader for VR 410 00:25:13,080 --> 00:25:15,880 Speaker 1: right now, though still the market is small. You have 411 00:25:16,040 --> 00:25:19,119 Speaker 1: Microsoft's hollow lens in a R. Where do you see 412 00:25:19,440 --> 00:25:24,880 Speaker 1: Magic leaps headset competing? And how well I see us 413 00:25:24,920 --> 00:25:28,560 Speaker 1: as the leader in the fully immersive a R sector. 414 00:25:28,680 --> 00:25:31,600 Speaker 1: So some of the other devices in a R might 415 00:25:31,680 --> 00:25:35,880 Speaker 1: be UM just meeting a narrow enterprise use case. With 416 00:25:36,080 --> 00:25:38,400 Speaker 1: all of the new improvements in our device, we can 417 00:25:38,440 --> 00:25:42,240 Speaker 1: meet a much broader set of use cases. And so 418 00:25:42,480 --> 00:25:44,960 Speaker 1: you can think of us sort of as the higher end, 419 00:25:45,640 --> 00:25:49,520 Speaker 1: the where you need more accurate placement of that digital 420 00:25:49,600 --> 00:25:53,800 Speaker 1: content in your physical world. And those are the requirements 421 00:25:53,840 --> 00:25:57,240 Speaker 1: of the three markets were focused on. The device looks 422 00:25:57,280 --> 00:25:59,639 Speaker 1: like a blend of a R and VR. You know 423 00:25:59,680 --> 00:26:02,720 Speaker 1: why of thing, Mixed reality is the way forward. I've 424 00:26:03,000 --> 00:26:05,160 Speaker 1: spoken to some folks lately who think it's all about 425 00:26:05,200 --> 00:26:10,200 Speaker 1: a R and that you know, most consumers and employees 426 00:26:10,280 --> 00:26:12,640 Speaker 1: if if you're using this through your business don't want 427 00:26:12,640 --> 00:26:15,439 Speaker 1: to be stuck in a virtual world, you're right. And 428 00:26:15,480 --> 00:26:18,320 Speaker 1: I think the real promise of the metaverse is in 429 00:26:18,560 --> 00:26:21,439 Speaker 1: augmented reality. We want to have our heads back up 430 00:26:21,480 --> 00:26:24,399 Speaker 1: again and seeing our physical world and just having that 431 00:26:24,560 --> 00:26:30,680 Speaker 1: content intelligently placed into that world. And so we are 432 00:26:30,760 --> 00:26:33,800 Speaker 1: focused on a R that we did introduce an interesting 433 00:26:33,920 --> 00:26:37,520 Speaker 1: new innovation called dimming, where you can take the light 434 00:26:37,600 --> 00:26:40,879 Speaker 1: out of what you're seeing and you can have almost 435 00:26:40,920 --> 00:26:44,880 Speaker 1: like an a super focus on something. So doctors can 436 00:26:44,880 --> 00:26:47,320 Speaker 1: take the light out of a bright operating room and 437 00:26:47,400 --> 00:26:49,800 Speaker 1: just see the knee in front of them that they're 438 00:26:49,840 --> 00:26:53,080 Speaker 1: operating on. And we can do that globally, or we 439 00:26:53,119 --> 00:26:55,280 Speaker 1: can do it and just segments in front of the screen. 440 00:26:55,400 --> 00:26:58,040 Speaker 1: Super complex to do because a R is all about 441 00:26:58,080 --> 00:27:00,680 Speaker 1: introducing light in front of your eyes and we're actually 442 00:27:00,760 --> 00:27:06,399 Speaker 1: removing it. So do you think the metaverse is overhyped? Well, 443 00:27:06,520 --> 00:27:09,320 Speaker 1: I think we're at the beginning of a technology and 444 00:27:09,320 --> 00:27:12,119 Speaker 1: I think oftentimes new technologies do get a bit of 445 00:27:12,119 --> 00:27:14,800 Speaker 1: a hype psychle We are staying very grounded and what 446 00:27:15,000 --> 00:27:19,600 Speaker 1: the technology is capable of doing today. Over time, I 447 00:27:19,640 --> 00:27:24,000 Speaker 1: think you'll see the further expansion of into consumer a 448 00:27:24,119 --> 00:27:28,000 Speaker 1: r but the device is going to have to be smaller, lighter, 449 00:27:28,040 --> 00:27:31,280 Speaker 1: more of a glasses format. We've made steps toward that 450 00:27:31,320 --> 00:27:35,680 Speaker 1: with Magic Leap to. It's about uh less weight and 451 00:27:35,800 --> 00:27:39,320 Speaker 1: about half the volume of Magical Leap one, but it's 452 00:27:39,359 --> 00:27:44,320 Speaker 1: going to be another or two for consumers. Okay. Peggy Johnson, 453 00:27:44,440 --> 00:27:56,560 Speaker 1: CEO of Magically, thanks you for stopping by. With the 454 00:27:56,640 --> 00:27:59,240 Speaker 1: Russian invasion of Ukraine escalating, so is the flood of 455 00:27:59,280 --> 00:28:02,680 Speaker 1: refugees of neighboring countries, most of them women and children. 456 00:28:02,880 --> 00:28:05,040 Speaker 1: Bloom Brooks Town McKenzie is on the ground at the 457 00:28:05,080 --> 00:28:10,240 Speaker 1: Poland Ukraine border. We are on the Polish Ukrainian border, 458 00:28:10,480 --> 00:28:13,800 Speaker 1: a place called Medica, where the number of refugees continues 459 00:28:13,840 --> 00:28:16,760 Speaker 1: to rise. The United Nations saying one point to million 460 00:28:16,800 --> 00:28:19,960 Speaker 1: people have crossed over from Ukraine into Poland just in 461 00:28:20,000 --> 00:28:23,360 Speaker 1: the last three weeks alone. We are our three weeks 462 00:28:23,400 --> 00:28:27,360 Speaker 1: into this war and the needs of these people very acute. Indeed, 463 00:28:27,800 --> 00:28:32,080 Speaker 1: in temperatures that are well below zero, freezing temperatures and 464 00:28:32,240 --> 00:28:35,320 Speaker 1: difficult conditions. At the top level, we are getting and 465 00:28:35,440 --> 00:28:38,200 Speaker 1: hearing of more funding the United States. The Houses are representatives. 466 00:28:38,240 --> 00:28:40,640 Speaker 1: They're signing off on about thirteen and a half billion 467 00:28:40,680 --> 00:28:43,760 Speaker 1: dollars worth of funding. Part of that will go towards 468 00:28:43,800 --> 00:28:46,440 Speaker 1: the humanitarian crisis on the ground here. The i m 469 00:28:46,480 --> 00:28:48,800 Speaker 1: F pushing through emergency funding at one point four billion, 470 00:28:48,920 --> 00:28:51,880 Speaker 1: and the Europeans as well Ukraine and officials saying they 471 00:28:51,880 --> 00:28:54,240 Speaker 1: expect to see the first transs EU money coming through 472 00:28:54,600 --> 00:28:57,440 Speaker 1: as early as next week. But this is a reminder 473 00:28:58,000 --> 00:29:01,000 Speaker 1: the numbers and the human toll of the need for 474 00:29:01,120 --> 00:29:05,080 Speaker 1: spending for people whose lives now are very much uncertain 475 00:29:05,280 --> 00:29:08,800 Speaker 1: and the prospects very much unknown for what is largely 476 00:29:09,000 --> 00:29:12,680 Speaker 1: a population of women, children and the elderly on the 477 00:29:12,720 --> 00:29:18,800 Speaker 1: Polish Ukrainian border. For Bloomberg, I'm Tom Mackenzie. Thank you Tom. 478 00:29:18,840 --> 00:29:22,720 Speaker 1: And with Ukraine's taking refuge in Poland as along with Moldova, 479 00:29:22,840 --> 00:29:26,960 Speaker 1: Romania and other neighboring countries, there's all ads logistical challenges 480 00:29:27,000 --> 00:29:31,320 Speaker 1: on top of the devastating humanitarian crisis. The logistics company 481 00:29:31,360 --> 00:29:34,520 Speaker 1: flex Sport is lending its expertise to relief efforts and 482 00:29:34,760 --> 00:29:38,200 Speaker 1: charting cargo and passenger planes to and from Ukraine. I 483 00:29:38,200 --> 00:29:41,120 Speaker 1: want to bring in flex Sport CEO Ryan Peterson for more. 484 00:29:41,200 --> 00:29:42,720 Speaker 1: So Ryan talked to us a little bit more about 485 00:29:42,760 --> 00:29:45,920 Speaker 1: what exactly flex Sport is doing here and the logistical 486 00:29:46,000 --> 00:29:49,800 Speaker 1: challenges that you're navigating. Yeah, hey, thanks for having me 487 00:29:49,840 --> 00:29:52,840 Speaker 1: on as a really terrible situation. So um flexport dot 488 00:29:52,960 --> 00:29:55,720 Speaker 1: Org is our impact arms and what we've done is 489 00:29:55,880 --> 00:30:00,240 Speaker 1: partner with the United Unitations logistics clusters organizing sort of 490 00:30:00,240 --> 00:30:05,240 Speaker 1: coordinating the overall refugee sites to to provide relief goods, 491 00:30:05,280 --> 00:30:09,120 Speaker 1: medical care, shelter and and other things that are needed 492 00:30:09,160 --> 00:30:11,680 Speaker 1: to help these people. So they're on the ground and 493 00:30:11,720 --> 00:30:14,960 Speaker 1: we're partnering then with Unice, SEFF and a painful of 494 00:30:14,960 --> 00:30:18,240 Speaker 1: other really established aid organizations to help fulfill almost the 495 00:30:18,240 --> 00:30:20,280 Speaker 1: wish list of these refugee sites of what are the 496 00:30:20,280 --> 00:30:23,360 Speaker 1: products they actually need? Uh, and then also tapping into 497 00:30:23,800 --> 00:30:27,160 Speaker 1: corporates and companies that we shipped for to get products 498 00:30:27,160 --> 00:30:29,520 Speaker 1: flowing from wherever they are in the world. A lot 499 00:30:29,560 --> 00:30:32,000 Speaker 1: of it's coming from the US because that's where Flexport 500 00:30:32,040 --> 00:30:34,560 Speaker 1: is headquartered, but much cheaper if we can find things 501 00:30:34,560 --> 00:30:37,400 Speaker 1: in Europe and bring them by truck across domestic trucking 502 00:30:37,560 --> 00:30:39,920 Speaker 1: within within the European Union. So we've been bringing these 503 00:30:39,960 --> 00:30:44,640 Speaker 1: goods to Poland, Romania, Slovakia. So far Um it's you know, 504 00:30:44,760 --> 00:30:46,560 Speaker 1: kind of a drop in the pocket, but we're getting started. 505 00:30:46,600 --> 00:30:51,520 Speaker 1: We've raised from over fifteen million dollars from donors to 506 00:30:51,600 --> 00:30:53,400 Speaker 1: help us pay for all these flights and get them 507 00:30:53,440 --> 00:30:55,800 Speaker 1: you know, and all the transportation to get their goods flowing. 508 00:30:56,560 --> 00:30:59,520 Speaker 1: What's been the hardest part of getting aid to the 509 00:30:59,600 --> 00:31:04,520 Speaker 1: place is where it's needed most. Historically, it's a coordination 510 00:31:04,520 --> 00:31:07,840 Speaker 1: problem as much as anything. So over the last few decades, 511 00:31:08,160 --> 00:31:10,800 Speaker 1: over six of all the goods that are donated or 512 00:31:10,840 --> 00:31:14,880 Speaker 1: delivered to humanitarian disaster sites natural you know that natural 513 00:31:14,920 --> 00:31:18,040 Speaker 1: disaster or conflicts like this, over sixty the goods end 514 00:31:18,080 --> 00:31:21,360 Speaker 1: up in the landfill eventually, uh, sort of wrong products, 515 00:31:21,400 --> 00:31:23,800 Speaker 1: wrong goods, sent to the wrong place at the wrong time, 516 00:31:24,200 --> 00:31:26,160 Speaker 1: nobody there to receive the cargo. So it's a it's 517 00:31:26,160 --> 00:31:29,560 Speaker 1: a complex coordination problem. This is something that Flexiports uniquely 518 00:31:29,600 --> 00:31:33,200 Speaker 1: good at. So we we started this in seen Um 519 00:31:33,200 --> 00:31:35,680 Speaker 1: following the Syrian Civil War and during the midst of 520 00:31:35,680 --> 00:31:38,880 Speaker 1: the Syrian Civil war to support refugees in Turkey and 521 00:31:38,880 --> 00:31:42,600 Speaker 1: in Jordan's um and working backwards from those sites, from 522 00:31:42,600 --> 00:31:44,920 Speaker 1: those refugee camps of exactly what do they need? What 523 00:31:45,000 --> 00:31:48,600 Speaker 1: are the great people on the ground doing distribution and 524 00:31:48,640 --> 00:31:51,360 Speaker 1: needs assessments, say, here are the products we need and 525 00:31:51,400 --> 00:31:54,560 Speaker 1: we're ready, raise our hand, ready to receive them. And 526 00:31:54,600 --> 00:31:57,440 Speaker 1: then partner with great aid agencies and nonprofits and for 527 00:31:57,600 --> 00:32:00,240 Speaker 1: profits around the world who have those products are can 528 00:32:00,320 --> 00:32:03,280 Speaker 1: coordinate delivery and make sure the goods don't go to waste, 529 00:32:03,440 --> 00:32:06,120 Speaker 1: and to make sure there's not chaos, like if a 530 00:32:06,120 --> 00:32:08,120 Speaker 1: truckload of stuff derives and no one knows what's in 531 00:32:08,160 --> 00:32:10,680 Speaker 1: there and no one's expecting it, it can actually slow 532 00:32:10,720 --> 00:32:12,920 Speaker 1: things down at these sites. And one of the big 533 00:32:12,920 --> 00:32:15,200 Speaker 1: problems is too much stuff is donated that's not the 534 00:32:15,320 --> 00:32:17,000 Speaker 1: right stuff at the right place, at the right time. 535 00:32:17,040 --> 00:32:20,000 Speaker 1: So that's what we're trying to solve for now. Russia's 536 00:32:20,040 --> 00:32:23,200 Speaker 1: invasion of Ukraine has already disrupted the global supply chain. 537 00:32:23,320 --> 00:32:27,320 Speaker 1: Add to that the sanctions the UH impact on Russian oil. 538 00:32:27,920 --> 00:32:31,680 Speaker 1: What shocks are you seeing in the supply chain and 539 00:32:31,720 --> 00:32:36,600 Speaker 1: what are the reverberations you're expecting and we've been through, 540 00:32:36,840 --> 00:32:38,680 Speaker 1: you know, now a couple of years of supply chain 541 00:32:38,760 --> 00:32:42,080 Speaker 1: shocks and are we do have a very resilient economy 542 00:32:42,120 --> 00:32:45,440 Speaker 1: of resilient logistics infrastructure, but you sort of keep pushing 543 00:32:45,480 --> 00:32:46,920 Speaker 1: the line and testing it and it's sort of it's 544 00:32:46,960 --> 00:32:50,040 Speaker 1: resilient until it's not. So. Um. Big things right now 545 00:32:50,040 --> 00:32:52,840 Speaker 1: are we've lost the ability as an aviation air cargo 546 00:32:52,920 --> 00:32:56,200 Speaker 1: industry can't fly over Russia anymore, got to go around. 547 00:32:56,360 --> 00:33:00,840 Speaker 1: That means extra stops, delays, um pretty and or fuel costs. 548 00:33:01,200 --> 00:33:03,280 Speaker 1: Of course, Russia is one of the biggest providers of 549 00:33:03,400 --> 00:33:06,680 Speaker 1: energy to the world, flitting fuel for aviation and that 550 00:33:06,920 --> 00:33:08,480 Speaker 1: so fuel prices are going to go through the roof 551 00:33:08,480 --> 00:33:10,880 Speaker 1: and rased prices both for air and ocean freight in 552 00:33:10,920 --> 00:33:14,600 Speaker 1: all forms of trade. Basic trade and freight runs on 553 00:33:14,760 --> 00:33:17,320 Speaker 1: runs on this energy. Um. But the thing that has 554 00:33:17,360 --> 00:33:20,840 Speaker 1: me worried the most is actually the loss of grain. 555 00:33:21,040 --> 00:33:23,280 Speaker 1: And Russia is the number one exporter of grain in 556 00:33:23,280 --> 00:33:26,120 Speaker 1: the world. Ukraine is number five. And if if this 557 00:33:26,200 --> 00:33:28,280 Speaker 1: grain doesn't reach the market, and it looks like Ukraine's 558 00:33:28,320 --> 00:33:31,240 Speaker 1: probably not going to plant grain this season, that's that's 559 00:33:31,280 --> 00:33:35,280 Speaker 1: gonna drive huge problems for any food importing nation as 560 00:33:35,280 --> 00:33:38,280 Speaker 1: well as fertilizer. Bellar versus a major export or fertilizer, 561 00:33:38,320 --> 00:33:41,640 Speaker 1: you're gonna lose that. So African countries, many developing nations, 562 00:33:41,680 --> 00:33:44,480 Speaker 1: Central Asia, Middle East depend on these inputs and on 563 00:33:44,520 --> 00:33:47,760 Speaker 1: this food for their population. It can get really scary 564 00:33:47,800 --> 00:33:51,080 Speaker 1: if that doesn't arrive. Surely that's going to impact supply 565 00:33:51,520 --> 00:33:54,880 Speaker 1: and prices. Meala Kunis who was born in Ukraine, and 566 00:33:54,920 --> 00:33:57,240 Speaker 1: Ashton Kutcher, I know they're directing portions of a go 567 00:33:57,360 --> 00:33:59,920 Speaker 1: fund me they set up to support flex port all 568 00:34:00,120 --> 00:34:03,400 Speaker 1: with Airbnb. F t X as CEO has been involved. 569 00:34:03,440 --> 00:34:06,680 Speaker 1: I'm curious how much he's donated and how much crypto 570 00:34:06,920 --> 00:34:11,239 Speaker 1: donations in general have contributed to your overall pie. Yeah, 571 00:34:11,280 --> 00:34:14,160 Speaker 1: so we're really pleased to have partner great corporate partners. 572 00:34:14,160 --> 00:34:17,000 Speaker 1: F t X has made a big, meaningful donation over 573 00:34:17,000 --> 00:34:19,880 Speaker 1: four thousand dollars from from the company so far, and 574 00:34:19,920 --> 00:34:22,840 Speaker 1: then they're setting up to promote uh the ability for 575 00:34:22,880 --> 00:34:26,520 Speaker 1: all their users to provide donations via crypto to the 576 00:34:26,560 --> 00:34:29,399 Speaker 1: go fund me that Mila and Ashton set up for 577 00:34:29,800 --> 00:34:31,560 Speaker 1: the cause. I don't have the access for how much 578 00:34:31,600 --> 00:34:33,880 Speaker 1: that's come in, but it's just getting started take a 579 00:34:33,880 --> 00:34:35,759 Speaker 1: little while to wire these things together and such a 580 00:34:35,760 --> 00:34:37,880 Speaker 1: short notice to get crypto set up with all the 581 00:34:37,920 --> 00:34:39,839 Speaker 1: regulations that go into that, but that's happening right now, 582 00:34:39,840 --> 00:34:42,319 Speaker 1: so really proud of that. And also Shopify, who's a 583 00:34:42,320 --> 00:34:46,440 Speaker 1: major flexible investor, made a big, meaningful contribution donation to 584 00:34:46,560 --> 00:34:48,600 Speaker 1: the cause as well, So I really really really excited 585 00:34:48,600 --> 00:34:51,719 Speaker 1: to work with such great people. All right, Well, we're 586 00:34:51,719 --> 00:34:54,000 Speaker 1: going to continue to monitor efforts. Thanks Ryan for taking 587 00:34:54,000 --> 00:34:56,279 Speaker 1: the time to explain that to us and for the 588 00:34:56,320 --> 00:34:58,880 Speaker 1: work that you're doing there to get those supplies that 589 00:34:58,920 --> 00:35:01,160 Speaker 1: are desperately needed to the people who need the most. 590 00:35:01,280 --> 00:35:04,799 Speaker 1: Flex Port CEO Ryan Peterson, thank you. And that does 591 00:35:04,800 --> 00:35:08,000 Speaker 1: it for this edition of Bloomberg Technology. I'm Emily Chang 592 00:35:08,000 --> 00:35:10,040 Speaker 1: in San Francisco. That's all for today. We'll see you 593 00:35:10,040 --> 00:35:11,160 Speaker 1: back here tomorrow.