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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live

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Speaker 1: from coast to coast with Caroline Hyde in New York

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Speaker 1: and edlave Low in San Francisco.

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Speaker 2: This is Bloomberg Tech coming up. Oracle surges on big

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Speaker 2: cloud contract wins and an outlook that left some analysts

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Speaker 2: in shock.

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Speaker 3: Coming up.

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Speaker 2: It's also a big day for Klara, which is getting

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Speaker 2: ready to go public with an IPO priced above the

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Speaker 2: marketing range. And we will discuss with the CEO.

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Speaker 4: And we'll bring you conversations from the primary summit right

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Speaker 4: here in New York, everything from AI, tech, sports, investing

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Speaker 4: and more.

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Speaker 2: Ed Okay, let's get to our top story. Oracle is

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Speaker 2: having its biggest jump since nineteen ninety two the chart forward.

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Speaker 2: This was a stock that was already up forty five

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Speaker 2: percent year to date and now has massive performance in

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Speaker 2: the year.

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Speaker 3: They gave us an outlook.

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Speaker 2: For cloud not just for this year, but told us

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Speaker 2: what's going to happen through twenty thirty. Then look at

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Speaker 2: the market cap nine hundred and sixty billion dollars almost

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Speaker 2: one trillion dollars. They have leap frog JP Morgan and

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Speaker 2: propelled themselves into the top ten companies on the S

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Speaker 2: and P five hundred analyst notes everywhere this morning, some

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Speaker 2: of them saying that they are in shock at the

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Speaker 2: numbers that we got. That is the market reaction. What

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Speaker 2: is it the market's reacting too. Let's get out to

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Speaker 2: Bloomberg Intelligence senior software analysts and a lag Rana. There

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Speaker 2: is the backlog right of business, the order book, it's

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Speaker 2: like four hundred and fifty billion dollars. Then there's the

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Speaker 2: outlook for cloud this year, and then there's the trajectory

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Speaker 2: through to the end of the decade. Why is the

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Speaker 2: stock reacting like this? And what was the data that

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Speaker 2: you jumped on?

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Speaker 5: Yeah, it is the order book basically because that audiobook

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Speaker 5: is going to lead into revenue over the next several years,

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Speaker 5: depending on how soon Oracle can get those data centers

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Speaker 5: live and get those workloads in.

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Speaker 2: When we talk about AI in the context of cloud,

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Speaker 2: we've been talking about the hyperscalers, and then we've been

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Speaker 2: talking about neo cloud renting GBHU capasitying in data centers

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Speaker 2: specifically for AI.

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Speaker 3: Where is Oracle now sitting in that field?

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Speaker 5: Yeah, this is very much close to what Morviv is doing,

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Speaker 5: basically renting out GPUs to customers to train their models

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Speaker 5: to do inference workloads. It's the same kind of mindset,

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Speaker 5: but the big difference is Oracle has a very high

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Speaker 5: margin software and applications business that can fund some of this,

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Speaker 5: you know, the expansion capacities, because the rest of the

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Speaker 5: neoclouds don't have that. They have to go out and

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Speaker 5: borrow that much money and at a much higher cost.

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Speaker 2: This chart that we're looking at, let's keep it up

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Speaker 2: for a second, guy, as if we can. It breaks

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Speaker 2: down the outlook. It's almost like arr but they're basically

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Speaker 2: saying that by the end of this decade there's going

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Speaker 2: to be sick see billion dollars in upside based on

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Speaker 2: what Oracle told us relative to consensus like what we

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Speaker 2: saw happening. Anna Rag, you've built a deep coverage of

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Speaker 2: this company as an analyst of Bloomberg Intelligence. Can you

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Speaker 2: explain materially what has changed for Oracle, what it is

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Speaker 2: they're actually doing in the real world that's driving the

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Speaker 2: potential growth.

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Speaker 5: I think the biggest thing is they are you know,

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Speaker 5: they have their latest infrastructure right now. They were buying

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Speaker 5: chips from Geo Nvidia. They are creating paymental computing for

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Speaker 5: anybody to come out and host their application or if

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Speaker 5: they want to train their large language model or small

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Speaker 5: language model. You know, this capacity is up for rental,

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Speaker 5: and then that's really the business Oracle is in. The

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Speaker 5: big issue is right now there is a massive shortage

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Speaker 5: of this kind of computing capacity, So everybody is trying

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Speaker 5: to get as much computing capacity as they can, so

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Speaker 5: they are rushing to you know, new clouds like Navieers

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Speaker 5: or core Vive for Oracle, Amazon, everybody, and I think

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Speaker 5: everybody to use the is beneficiary here, not just you know,

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Speaker 5: one particular data center. It's just the only thing is

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Speaker 5: Oracle's revenue base in cloud infrastructure was you know, roughly

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Speaker 5: around ten billion a year ago or so in their

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Speaker 5: last financial years, and then compared to let him, you know,

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Speaker 5: Amazon one hundred and twenty five billion or Azure's seventy

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Speaker 5: five billion.

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Speaker 2: Just very quickly, Anna Rag, I've known Oracle as a

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Speaker 2: databased software name, and there seems to be of a

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Speaker 2: hard pivot. Is the hard pivot the right characterization?

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Speaker 5: Yeah, but the hard pivot started, I'm going to be

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Speaker 5: very honest twenty seventeen twenties. I mean, it's it's been

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Speaker 5: going on for a while, but a lot of that

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Speaker 5: was for their own database business, and you know, incomes

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Speaker 5: AI and everybody is looking for computing capacity and they're

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Speaker 5: there to you know, offer those services.

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Speaker 2: Anarag stay with us because we have one other piece

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Speaker 2: of news coming out of the Oracle story. After Oracle's

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Speaker 2: results past expectations, it's co founder Larry Ellison has become

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Speaker 2: the world's richest person for the first time, ending Elon

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Speaker 2: masks nearly years long rain in the top spot. Elison's

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Speaker 2: fortune sawed one hundred and one billion dollars as of

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Speaker 2: about ten a m New York time, lifting his total

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Speaker 2: fortune according to Bloomberg calculations and the Billionaires Index to

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Speaker 2: three hundred and ninety three.

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Speaker 3: Billion US dollars.

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Speaker 2: Anna, Rag, you're staying with us because I want to

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Speaker 2: get back to another story that's top of mind.

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Speaker 3: Apple.

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Speaker 2: Yesterday, I was in Kupertino at Apple Park. You wrote

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Speaker 2: that iPhone sales could still get a high single digit

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Speaker 2: lift with this iPhone seventeen generation, and like everyone, you

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Speaker 2: are focused on pricing. Build out the rest of your

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Speaker 2: thesis on that.

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Speaker 5: Yeah, so when you look at consensus right now in

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Speaker 5: unit shipments, it's only building in you know, one percent

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Speaker 5: increase of unit shipments and let's say two to four

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Speaker 5: percent increase in iPhone sales. We have a slightly different view.

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Speaker 5: We think the newer model, even though everybody says it's

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Speaker 5: not the best thing out there, but I think it's

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Speaker 5: still going to generate excitement in emerging markets. It's still

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Speaker 5: going to force people that have not upgraded. A new form.

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Speaker 5: Factor is an act of novelty. It's a new thing

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Speaker 5: for people to hold. So you know, giving a unit

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Speaker 5: shipments of three to five percent is not a big deal.

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Speaker 5: And then when you get a price up lift of that,

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Speaker 5: that increases your average revenue per user, and that actually

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Speaker 5: takes it up to the seven eight nine percent that

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Speaker 5: we are talking about for the next financial year, which

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Speaker 5: is f five twenty six.

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Speaker 2: I do want to point out that the Decline's and

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Speaker 2: Apple in this session of really accelerated with down almost

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Speaker 2: three percent on a two day basis, down four and

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Speaker 2: a half percent, biggest drop on a two day basis

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Speaker 2: since May. But it's always a sell the news event.

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Speaker 2: And then we'll look further afield on how the handset resonates.

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Speaker 2: How big a factor are the carriers here in the

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Speaker 2: United States in terms of the discounts.

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Speaker 5: No, they are very big factors because though those discounts

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Speaker 5: are the one that forces people to go out and

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Speaker 5: you know, go out and get the new phone. Now,

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Speaker 5: what we have seen over the last several years, this

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Speaker 5: is you know, a trend for that we have observed

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Speaker 5: for the last three four years. The refresh cycle is

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Speaker 5: getting extended. There was a time pell the average life

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Speaker 5: was roughly around four years or so. Now that's moving

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Speaker 5: up a little where people are keeping it longer. But

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Speaker 5: if you give them the incentive to go out and

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Speaker 5: get a new phone, you know, you could accelerate that.

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Speaker 5: And the other thing that can accelerate that refair cycle

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Speaker 5: is if they launch any new AI features over the

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Speaker 5: next six to twelve months.

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Speaker 2: So here's the question, Ana, Rag, which phone do you

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Speaker 2: go out and get. Everyone's focused on the air five

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Speaker 2: point six milimeter thickness because it's a category in and

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Speaker 2: of itself. Right Samsung has the Galaxy S twenty five Edge.

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Speaker 2: People build this is the greatest hardware innovation from Apple

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Speaker 2: on the iPhone in a long time. The technology matters,

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Speaker 2: Does it matter to you and how you're modeling for it.

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Speaker 5: Yeah, say, from our side, I think the Pro model

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Speaker 5: gets sold in the US more than anything else. And

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Speaker 5: that's the way you have an inherent price increase of

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Speaker 5: one hundred dollars because the lower memory phone is not

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Speaker 5: available anymore, you're going to have to pick the two

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Speaker 5: hundred and fifty six, you know, gigabyte the phone which

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Speaker 5: comes at one hundred dollars price increased. So that's the

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Speaker 5: one where we think it would be most sold in

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Speaker 5: the US where the benefits are the highest in terms

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Speaker 5: of carriers.

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Speaker 2: Anna rag Rana, who leads our research on both Oracle

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Speaker 2: and Apple Bloomberg Intelligence, thank you very much.

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Speaker 3: Now coming up, we're going to talk to.

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Speaker 2: Klana CEO Sebastian shumir Kowski as the company prepares to

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Speaker 2: go public today.

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Speaker 3: Caro, what have you got later this hour?

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Speaker 4: So much right here in New York City, Primary Summit

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Speaker 4: is upon us. We've got founders, venture investors, but also

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Speaker 4: sports people have become venture investors with us as well.

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Speaker 4: We've got Larry Fitzgerald is going to be joining the

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Speaker 4: conversation and his work alongside Vasu called Karnie, who's of

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Speaker 4: course Courtside Venture's partner. Larry helps advise and thinks about strategy,

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Speaker 4: whether it's about health AI, whether.

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Speaker 3: That's the future of sports.

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Speaker 4: Martine Mignon of Index Venture is also going to be

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Speaker 4: with us. Really interesting day as we think about the

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Speaker 4: IPOs in fintech. This is Bloomberg Tech.

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Speaker 2: Shares of buy now, pay later firm Klana are set

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Speaker 2: to begin trading today. The company, in some of its

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Speaker 2: backers sold over thirty four million shares at forty dollars each,

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Speaker 2: giving Klana a market value of about fifteen zero point

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Speaker 2: one billion dollars.

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Speaker 3: We're joined now by Klana.

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Speaker 2: CEO, Sebastian, SHIMIIR and Koski Sebastian. First of all, congratulations

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Speaker 2: to you, Caroline and I have quizzed you over the

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Speaker 2: years on when an IPO happens, why it happens. I

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Speaker 2: just want to bring you some news if I may,

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Speaker 2: in the time that we've come on air. There's a

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Speaker 2: headline on the Bloomberg terminal that the shares are indicated

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Speaker 2: to open between fifty and fifty two dollars each. You

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Speaker 2: price the IPO at forty. Just summarize your reaction to

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Speaker 2: that and what it means to you on a daylight today.

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Speaker 6: I'm happy, I didn't hear what you said on the

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Speaker 6: price or a pretendin not to hear it, so I

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Speaker 6: don't have to comment on it. We'll find out. Like

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Speaker 6: I'm you know, I'm very I'm very much looking forward

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Speaker 6: to welcome new shareholders to the company, and I think

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Speaker 6: there's decades of growth and opportunity ahead of ourselves, So

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Speaker 6: I feel very excited about this.

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Speaker 2: Today we introd you as a buy now, pay later firm,

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Speaker 2: but increasingly when you've come on this program, we've talked

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Speaker 2: about Klana is an everything app. How does this IPO

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Speaker 2: reposition you into that domain?

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Speaker 6: Well, look, I think that was actually my biggest happy

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Speaker 6: moments from the IPO.

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Speaker 7: There were two from the road show. One.

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Speaker 6: I got very few questions about buying oppu later and

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Speaker 6: a lot about our card and how it's growing. We've

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Speaker 6: signed up seven hundred thousand new Americans in the last

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Speaker 6: six weeks to our card. We have five million people

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Speaker 6: on the waiting list. But the best part of the

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Speaker 6: road show, I tell you, was when we signed into

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Speaker 6: one to the reception at one of our investors. The

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Speaker 6: guy in the reception said, oh, you're from Clana. He's like, yes,

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Speaker 6: do you use it?

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Speaker 7: I love it.

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Speaker 6: I use it all the time and I was like, oh,

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Speaker 6: but what can we do better? He's like, nothing, just

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Speaker 6: get me the card. So that was the best moment

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Speaker 6: from the whole road.

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Speaker 3: Show, Sebastia.

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Speaker 4: It's like a man getting event. When one goes public,

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Speaker 4: you get your name in other people's mindset. Here in

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Speaker 4: the United States, will you go for a banking license?

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Speaker 4: Talk us through where the growth story is going forward?

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Speaker 7: Sure?

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Speaker 6: No, Look there, we have a bank license in Europe,

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Speaker 6: as you're well aware of. We've had it for ten years.

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Speaker 6: It's fantastic, gives us access to deposits. It's a very

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Speaker 6: effective way of funding our banags sheet allows us actually

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Speaker 6: to do it more cheaply than our competitors. But I

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Speaker 6: think the key thing is in the US there's this

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Speaker 6: group McKinsey showed us in a study already ten years ago.

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Speaker 6: They're called self aware of voids. These are people who've

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Speaker 6: tried the credit card. It actually makes slightly more than

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Speaker 6: your low income household and medium houses in household income.

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Speaker 6: They are they try the card, they tried revolving. They

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Speaker 6: say it's it's the product of the devil. They don't

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Speaker 6: want to get in four thousand dollars of credit card

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Speaker 6: debt with you know, twenty thirty percent interest. They love

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Speaker 6: by an appulator, and they love our card.

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Speaker 8: They love the.

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Speaker 6: Opportunity to put most things on debit and then occasionally

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Speaker 6: put it on interest free installments.

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Speaker 3: Very cost effective.

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Speaker 6: So that's the target audience, twenty percent of the American households.

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Speaker 6: And you know, now we have twenty six million users

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Speaker 6: in the US, so we're seeing a lot of pickup.

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Speaker 4: Seeing pickup, You're seeing pickup in your shares. You are

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Speaker 4: significantly oversubscribed, as we told you, and you chose not

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Speaker 4: to hear that. You're currently seeing shares being indicated much

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Speaker 4: higher than even at they priced at.

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Speaker 9: Did you sell too low?

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Speaker 4: I know you're a man that's had to stomach variations

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Speaker 4: in your market capitalization in history. What does it mean

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Speaker 4: to you to have a valuation out there in public?

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Speaker 4: More broadly every day cool?

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Speaker 6: Look to be honest personally, I'm not selling a single

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Speaker 6: share in this IPO. I am, you know, a long

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Speaker 6: term shareholder. I love this company, been doing this for

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Speaker 6: two decades. It's a long period of time. But fortunately

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Speaker 6: I was twenty three when we started, so I'm not

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Speaker 6: that all yet and I hope to continue for a

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Speaker 6: few decades. And if you're truly going to disrupt retail

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Speaker 6: banking and you know, and change this industry that has

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Speaker 6: you know, a mass so much excess profit because of

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Speaker 6: the lack of competition, the lack of customer focus, and

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Speaker 6: you want to bring that back and you want to

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Speaker 6: create a better service for customers. That's going to take

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Speaker 6: some time, though, This is not something you do overnight,

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Speaker 6: and I just look forward to doing that, and then

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Speaker 6: investors will occasionally lean more into the future and occasionally

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Speaker 6: lean more into profit today and so forth, and that

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Speaker 6: will vary, and you know, it's up to everyone to

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Speaker 6: take that decision for themselves.

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Speaker 3: Sebastily.

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Speaker 2: The mechanism in this IPO is really important because you

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Speaker 2: didn't raise like a huge amounts of money, and on

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Speaker 2: this program recently we've done all the reporting on some

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Speaker 2: of your peers, like Revolute doing transactions to stay private deliberately.

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Speaker 2: So you faced a choice and you chose to go public.

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Speaker 2: What was the main motivation?

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Speaker 6: I think, you know, again, to your point, we only

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Speaker 6: raised two hundred million dollars right in this IPO because

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Speaker 6: the company is you know, self sustainable from a capital

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Speaker 6: perspective doing really well, so there's no real need. I

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Speaker 6: think that the key thing is we've had twenty years

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Speaker 6: of private investors, employees bought into the Star, and over

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Speaker 6: time it became quite an effort to keep track of

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Speaker 6: private transaction in Google sheets, right, So now it's a

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Speaker 6: little bit more efficient to trade the stock on the market.

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Speaker 6: Gives people who's been with us for many decades the

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Speaker 6: ability to get some liquid out, but most people are

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Speaker 6: not selling much. And at the same point of time,

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Speaker 6: fantastic to welcome new shareholders to the cap table who

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Speaker 6: want to join what we're trying to revolutionize in retail banking.

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Speaker 7: So I'm super excited about.

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Speaker 2: Which you kind of illustrate outline what the competitive landscape

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Speaker 2: looks like to you, who your competitors are, and also

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Speaker 2: the regulatory headwinds that you're bracing.

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Speaker 6: For sure, I mean, people will always mention a firm revolute,

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Speaker 6: and we are very impressed by those companies, very inspired

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Speaker 6: by them. But the truth is credit card industry is

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Speaker 6: one point three trillion dollar revenue market. So I would

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Speaker 6: say it's mostly the incumbents, the old banks that are

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Speaker 6: you know, the opportunity and where the competition is and

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Speaker 6: where we can grab tons of market share. And the

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Speaker 6: problem for them is, you know, if you have a

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Speaker 6: credit card program that's running at thirty percent interest and

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Speaker 6: you're revolving people at four thousand dollars, and you look

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Speaker 6: at Klona's payment model where our average outstanding balance is

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Speaker 6: one hundred dollars and zero percent interest, you're not too keen.

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Speaker 6: You don't want to jump into that. You don't want

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Speaker 6: to lose all the profit you're making. But for us,

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Speaker 6: it's just opportunity. It does upside, you know, grab more

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Speaker 6: market share, become larger. It works well for us. We

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Speaker 6: make money out of that, you know. So it's that's

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Speaker 6: what we see as the primary competition on the regulatory side. Look,

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Speaker 6: I think at the core of it, if ten years

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Speaker 6: from now, less people use credit cards and more people

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Speaker 6: use debit cards and occasionally buy an appay later, that's

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Speaker 6: a better that's a better society. And as we get

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Speaker 6: the chance to sit down and take all the noise

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Speaker 6: away from media and so for it to actually explain

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Speaker 6: and show our losses are thirty percent lower than credit cards,

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Speaker 6: our consumers are borrowing much less.

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Speaker 7: You know.

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Speaker 6: I had this conversation to add a conversation with a customer.

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Speaker 6: She was like, yeah, my mom called me and she

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Speaker 6: was like, are you using this interesting called binacty lad

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Speaker 6: with Klana And she told her moms like, Mom, you

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Speaker 6: have a credit card?

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Speaker 9: Right?

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Speaker 7: Yeah?

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Speaker 6: How much dep do you have? Four thousand dollars? What's

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Speaker 6: your interest? Thirty percent? Which is like, Mom, I'm borrowing

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Speaker 6: one hundred dollars a zero percent interest? Who is financially responsible?

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Speaker 6: And you get those that message across, then you realize

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Speaker 6: that regulators actually start embracing and seeing value in that

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Speaker 6: we're bringing competition to a market that has, you know,

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Speaker 6: extracted excess profit out of customers by tactics that are

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Speaker 6: not in the customer's best interest.

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Speaker 4: Thank you, and your tactic in many ways has been

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Speaker 4: to embrace efficiency, adopting generator of AI in the workforce,

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Speaker 4: in particular within the product. How much more can you

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Speaker 4: focus in on margins? How much more are you going

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Speaker 4: to have to keep hiring to scale and to sell?

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Speaker 6: Well, the truth is right, we haven't hired people for

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Speaker 6: two years. We've shranked the company from seven thousand to

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Speaker 6: three thousand, four hundred to three thousand people, which is fantastic,

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Speaker 6: but I would say we probably over index a libit

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Speaker 6: on efficiency, and now the last six nine months we've

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Speaker 6: taken much more focus on how do we take all

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Speaker 6: the learnings We've used ourselves as employees as guinea pigs

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Speaker 6: for all these AI software, all these tools, we took out,

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Speaker 6: all the SaaS software to salesforce and all that, and

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Speaker 6: now what we want to do. We want to bring

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Speaker 6: that to our customers. We want to bring that to

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Speaker 6: the immersions. We're very excited in the coming weeks and

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Speaker 6: months to launch AI powered customer retail banking apps that

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Speaker 6: we believe are going to be tremendously more valuable and

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Speaker 6: create more values, save time, save money for our customers

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Speaker 6: and make them feel and control of their finances. So

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Speaker 6: it's very exciting to use AI now to create the

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Speaker 6: next generation of financial services.

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Speaker 2: So Sebasti, you're a public company now, so you have

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Speaker 2: coarsely earnings. But I want to end by asking what

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Speaker 2: the metric is that you will gauge plan as success

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Speaker 2: by what is the kind of milestone that you are

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Speaker 2: holding your company to from this point?

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Speaker 3: Well, it's very easy.

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Speaker 6: You mentioned already resolute in the firm clan has focused

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Speaker 6: in the last few years has been let's get as

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Speaker 6: many users as possible. It's a litt bit like Facebook, right,

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Speaker 6: you want to get as many users as possible. We're

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Speaker 6: now at one hundred eleven million. That means, you know,

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Speaker 6: a firm I think is less than thirty revoluted fifty.

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Speaker 6: We're one hundred eleven million users. But our revenue for

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Speaker 6: customer is not like as much as there and that

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Speaker 6: is it. You know, revenue for customer is the one

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Speaker 6: metric now because we know that when we start launching

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Speaker 6: things like the card, we see massive pickup from our audience.

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Speaker 6: So now obviously we want to reach similar revenue for customers.

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Speaker 6: We're seeing our main competitors and that has the potential

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Speaker 6: of bringing us from a revenue size company as well

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Speaker 6: to a different level. So that is the key metric

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Speaker 6: right now, revenue for customer.

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Speaker 4: It's beast In Shimirnkowski Klan, a CEO the Blockbuster Hat.

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Speaker 4: I hope that bodes about the IPO rather than the

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Speaker 4: future business model. We so appreciate you being here with

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Speaker 4: us today live from the New York Stock Exchange. Now

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Speaker 4: we are here in New York City, the other part

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Speaker 4: of town at Primary Summit Now this is all about

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Speaker 4: the future of investing, the startups that you want to

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Speaker 4: be in more broadly, and the way in which we're

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Speaker 4: seeing investors take shape in the world of sports, in

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Speaker 4: the world of AI, in the world of consumer health

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Speaker 4: as well. So I just want to be digging deep

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Speaker 4: into our next set of guests who are joining us

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Speaker 4: today on the back of really the future of AI

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Speaker 4: and sports with Vassal Kolkhaney. Now he himself a founder

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Speaker 4: but then became a venture capitalists with Courtside Ventures. Belaria

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Speaker 4: Fitzgerald as well, an NFL veteran now turned advisor and

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Speaker 4: investor alongside Courtside Ventures. Gentlemen, it's wonderful, wonderful to be

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Speaker 4: here with both of you and.

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Speaker 3: Fus Do I start with you?

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Speaker 4: You wance a founder, you're now an investor. What does

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Speaker 4: the future of sports investing look like to you? Because

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Speaker 4: when I look at your portfolio, there's a myriad of

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Speaker 4: health tech, there's about collectibles, it's about fandom, but it's

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Speaker 4: also about new types of sports and keeping them shorter

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Speaker 4: and quicker.

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Speaker 8: Yep, I think you hit it perfectly.

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Speaker 10: Everyone who talks about sports today thinks about teams and leagues,

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Speaker 10: but sports is so much larger than just that. Most

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Speaker 10: people sports teams as a trophy asset. But then if

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Speaker 10: you look at what they're doing today, they're developing the

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Speaker 10: real estate around the stadium and creating many, many large

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Speaker 10: business opportunities.

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Speaker 3: For us.

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Speaker 10: On the venture side, it's always been about the fact

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Speaker 10: that there's media opportunities, there's.

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Speaker 8: The world of collectibles.

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Speaker 10: We just saw Babe Ruth Jersey sell last year for

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Speaker 10: thirty two million dollars.

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Speaker 8: That's a real asset class.

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Speaker 10: Now we see the world of fitness and wellness and longevity.

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Speaker 10: That's the name of the game this year is how

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Speaker 10: are you going to live to be one hundred years old?

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Speaker 10: To me, all of that is sports. It's not just

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Speaker 10: what happens on the field. It's so much of what

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Speaker 10: happens off the field as well, and those are the

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Speaker 10: things that we've been investing in for the last ten

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Speaker 10: years now.

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Speaker 4: Larry, you're a testament to that on the field, known

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Speaker 4: as one of the best receivers of all the time.

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Speaker 4: But we think about what you do off the field,

442
00:20:43,040 --> 00:20:46,920
Speaker 4: whether it's philanthromic, but it's about backing new ventures. Where

443
00:20:47,000 --> 00:20:48,800
Speaker 4: is your sweet spot at the moment, where have you

444
00:20:48,920 --> 00:20:51,280
Speaker 4: thought that the world of sport has changed, and where

445
00:20:51,320 --> 00:20:54,720
Speaker 4: you didn't really foresee that you've made money out what.

446
00:20:54,600 --> 00:20:55,679
Speaker 3: It is a lot of different verticals.

447
00:20:55,720 --> 00:20:57,639
Speaker 11: Like you take, for instance, flag football, it's coming to

448
00:20:57,760 --> 00:20:59,640
Speaker 11: it's going to be an Olympic sport in twenty twenty eight.

449
00:20:59,840 --> 00:21:02,040
Speaker 11: How is it that we can get young ladies to

450
00:21:02,080 --> 00:21:03,880
Speaker 11: be able to participate in the game that they love.

451
00:21:04,119 --> 00:21:06,199
Speaker 11: You know, fifty percent of our fans are women, and

452
00:21:06,240 --> 00:21:08,160
Speaker 11: they're not able to participate. They're not able to put

453
00:21:08,160 --> 00:21:10,359
Speaker 11: helmets and shoulder pads on like the boys are. But

454
00:21:10,400 --> 00:21:11,920
Speaker 11: how can we give them that avenue to be able

455
00:21:11,920 --> 00:21:14,520
Speaker 11: to continue to follow their passions They watch with their

456
00:21:14,560 --> 00:21:17,320
Speaker 11: brothers and their fathers and others in their schools and

457
00:21:17,359 --> 00:21:18,000
Speaker 11: support their.

458
00:21:17,880 --> 00:21:18,840
Speaker 7: Fantasy football team.

459
00:21:18,960 --> 00:21:21,480
Speaker 11: So I look at emerging sports like I still think

460
00:21:21,520 --> 00:21:25,479
Speaker 11: women's sports is the most undervalued asset class in sports.

461
00:21:25,480 --> 00:21:28,280
Speaker 11: And you see what unrivaled best Mondice lead their recent

462
00:21:28,359 --> 00:21:32,080
Speaker 11: round and like, I just think that that that expansion

463
00:21:32,280 --> 00:21:34,120
Speaker 11: and opportunities is endless.

464
00:21:34,600 --> 00:21:37,479
Speaker 4: Flag football is taking my world upstate by storm.

465
00:21:37,600 --> 00:21:39,280
Speaker 9: Tell you what also is pickaball?

466
00:21:39,359 --> 00:21:40,199
Speaker 3: I know you're backing that.

467
00:21:40,280 --> 00:21:42,119
Speaker 4: I know cricket is an area they're almost like the

468
00:21:42,200 --> 00:21:45,720
Speaker 4: charge and making things more consumable, more pacy. Is there

469
00:21:45,760 --> 00:21:48,359
Speaker 4: a side effect of making everything for those that have

470
00:21:48,440 --> 00:21:49,960
Speaker 4: a lack of attention span nowadays?

471
00:21:50,119 --> 00:21:50,679
Speaker 3: I don't think so.

472
00:21:50,720 --> 00:21:52,400
Speaker 7: I think you have your peers.

473
00:21:52,440 --> 00:21:54,720
Speaker 11: You know, my dad, he sits down and watches the

474
00:21:54,760 --> 00:21:57,679
Speaker 11: game on network TV like everybody else. But my sons

475
00:21:57,720 --> 00:21:59,600
Speaker 11: they have no interest in watching an entire football game.

476
00:22:00,000 --> 00:22:01,919
Speaker 7: Want to watch red zone. They want to see the snipbits.

477
00:22:02,000 --> 00:22:06,080
Speaker 11: They want to see justin Jefferson's touchdown catches, Chase Jamar

478
00:22:06,160 --> 00:22:08,399
Speaker 11: Chase's touchdowns. They want to see it quick and easy,

479
00:22:08,520 --> 00:22:09,840
Speaker 11: and they want to see what they're doing on their

480
00:22:09,880 --> 00:22:12,000
Speaker 11: fantasy teams. That's how they consume it, you know, and

481
00:22:12,040 --> 00:22:13,200
Speaker 11: so we have to be able to give it to

482
00:22:13,240 --> 00:22:15,160
Speaker 11: them in by size pieces, like the way they want

483
00:22:15,160 --> 00:22:15,639
Speaker 11: to consume it.

484
00:22:15,720 --> 00:22:18,399
Speaker 3: We can't do everything the way my dad wanted to do.

485
00:22:18,600 --> 00:22:21,240
Speaker 11: If this is the younger consumers watching it in a

486
00:22:21,240 --> 00:22:22,040
Speaker 11: different way, and.

487
00:22:22,000 --> 00:22:24,240
Speaker 4: This is where your expertise vasu on content and media

488
00:22:24,280 --> 00:22:27,200
Speaker 4: consumption comes in. Where are you seeing the innovation coming from?

489
00:22:27,200 --> 00:22:29,320
Speaker 4: What kind of founders it coming into the game. I mean,

490
00:22:29,359 --> 00:22:31,840
Speaker 4: Alex Rodriguez is someone that you've backed. Of course, a

491
00:22:31,960 --> 00:22:33,880
Speaker 4: rod is someone that we know well on our network.

492
00:22:34,280 --> 00:22:36,359
Speaker 4: He has backed future of Media. But where are some

493
00:22:36,400 --> 00:22:37,520
Speaker 4: of the more innovations coming in?

494
00:22:37,560 --> 00:22:39,320
Speaker 10: When it comes in, you're seeing sort of a lot

495
00:22:39,320 --> 00:22:42,040
Speaker 10: of new emerging leagues come in with new types of content.

496
00:22:42,119 --> 00:22:44,320
Speaker 10: So we just backed a company called Baller League that's

497
00:22:44,320 --> 00:22:46,960
Speaker 10: based out of Germany, which is now six on six football.

498
00:22:47,359 --> 00:22:49,679
Speaker 10: You can't kick the ball backwards behind midfield, so it

499
00:22:49,720 --> 00:22:50,359
Speaker 10: creates action.

500
00:22:50,520 --> 00:22:52,120
Speaker 3: It's two fifty football.

501
00:22:52,160 --> 00:22:55,720
Speaker 10: We're talking your football, not our type of football. That's

502
00:22:55,720 --> 00:22:59,440
Speaker 10: exactly right, and two fifteen minute halfs. So it's basically

503
00:22:59,560 --> 00:23:02,440
Speaker 10: made or content to be consumed on a cell phone.

504
00:23:02,760 --> 00:23:04,639
Speaker 10: And oh, by the way, every one of the teams

505
00:23:04,640 --> 00:23:07,840
Speaker 10: in that league is operated by a streamer or a

506
00:23:07,880 --> 00:23:10,280
Speaker 10: content creator that has probably more than thirty to forty

507
00:23:10,320 --> 00:23:13,240
Speaker 10: million followers on Instagram or Twitter or TikTok, so on

508
00:23:13,440 --> 00:23:16,919
Speaker 10: day one you're talking about an audience that's already there. Historically,

509
00:23:17,280 --> 00:23:20,600
Speaker 10: the NBA, the NFL, it took them several decades to

510
00:23:20,640 --> 00:23:22,040
Speaker 10: get to the point where they could go get a

511
00:23:22,080 --> 00:23:24,679
Speaker 10: media rights deal, start to get the sponsorship revenue in

512
00:23:24,720 --> 00:23:28,600
Speaker 10: and become a real business. These leagues are able to

513
00:23:28,640 --> 00:23:31,080
Speaker 10: do it overnight. In the first year, they can generate

514
00:23:31,119 --> 00:23:33,480
Speaker 10: tens of millions of dollars in revenue because they can

515
00:23:33,520 --> 00:23:36,440
Speaker 10: now go straight and free to stream on Twitter or YouTube,

516
00:23:36,480 --> 00:23:38,280
Speaker 10: so they don't have to wait for the ESPNS or

517
00:23:38,280 --> 00:23:40,160
Speaker 10: the Sky Sports to show up and give them a deal.

518
00:23:40,480 --> 00:23:43,240
Speaker 10: They're they've already got the audience, which means the sponsors

519
00:23:43,280 --> 00:23:44,240
Speaker 10: are now coming instantly.

520
00:23:44,280 --> 00:23:45,720
Speaker 8: And those are the types of business that we find

521
00:23:45,760 --> 00:23:46,320
Speaker 8: really interesting.

522
00:23:46,359 --> 00:23:49,160
Speaker 4: I mean, that's there the self proclaimed biggest fastball fan

523
00:23:49,240 --> 00:23:51,440
Speaker 4: there is, Hence courtside.

524
00:23:50,960 --> 00:23:52,080
Speaker 3: An average player to.

525
00:23:52,240 --> 00:23:58,639
Speaker 4: Average Sometimes those things go hand thet I'm interested about

526
00:23:58,680 --> 00:24:00,520
Speaker 4: how you think fandom fits in to all of this,

527
00:24:00,720 --> 00:24:04,159
Speaker 4: and how ultimately we still want to spend on the

528
00:24:04,200 --> 00:24:06,919
Speaker 4: things that we love. How you thinking about collectibles, the

529
00:24:06,920 --> 00:24:08,920
Speaker 4: way which that pivots to a digital side.

530
00:24:09,000 --> 00:24:11,399
Speaker 10: Yes, I don't want to say we're the anti AI fund,

531
00:24:11,400 --> 00:24:14,520
Speaker 10: because we do invest in AI companies. But when I

532
00:24:14,560 --> 00:24:16,680
Speaker 10: think about one hundred years from now, and AI has

533
00:24:16,720 --> 00:24:19,520
Speaker 10: eaten just about every industry in the world, I hope

534
00:24:19,720 --> 00:24:21,720
Speaker 10: that we still want to watch humans play sports and

535
00:24:21,720 --> 00:24:25,560
Speaker 10: not robots, right, And if that is true, then I

536
00:24:25,600 --> 00:24:28,560
Speaker 10: think everything that we're investing in here today will still

537
00:24:28,600 --> 00:24:30,199
Speaker 10: be around hopefull one hundred years m right. It may

538
00:24:30,240 --> 00:24:32,320
Speaker 10: look slightly different, but it'll still be here. And when

539
00:24:32,359 --> 00:24:34,920
Speaker 10: you talk about the world of collectibles, you think back

540
00:24:34,960 --> 00:24:37,840
Speaker 10: to mankind as a hunter and gatherer. I think from

541
00:24:37,840 --> 00:24:42,400
Speaker 10: the earliest cavemen, we've had this innate desire to hunt

542
00:24:42,440 --> 00:24:44,800
Speaker 10: and gather. Back then it was for food. Today we

543
00:24:44,840 --> 00:24:46,720
Speaker 10: don't have to hunt for our own food, but we

544
00:24:46,800 --> 00:24:49,159
Speaker 10: still have that desire to hunt for things. And to me,

545
00:24:49,240 --> 00:24:51,199
Speaker 10: those are the world that's the world of collectibles. And

546
00:24:51,240 --> 00:24:55,919
Speaker 10: so whether it's watches, handbags, sports memorabilia, trading cards, Pokemon cards,

547
00:24:56,200 --> 00:24:59,080
Speaker 10: this is a six hundred billion dollar industry that is

548
00:24:59,320 --> 00:25:02,280
Speaker 10: just starting to see the light of technology. It was

549
00:25:02,440 --> 00:25:04,639
Speaker 10: sort of eBay for the first twenty years of the Internet,

550
00:25:04,680 --> 00:25:06,399
Speaker 10: and now you're going to see a whole host of

551
00:25:06,440 --> 00:25:09,080
Speaker 10: new companies that are going to create better buyer and

552
00:25:09,119 --> 00:25:11,880
Speaker 10: seller experiences for all of us who want to collect things.

553
00:25:12,160 --> 00:25:15,320
Speaker 4: Larry, I'm sure in many ways the deals hunt you,

554
00:25:15,840 --> 00:25:18,040
Speaker 4: and people come to you with their innovations and their

555
00:25:18,040 --> 00:25:20,159
Speaker 4: ideas in the world of sports and media and content,

556
00:25:20,240 --> 00:25:22,960
Speaker 4: But what have you looked to hunt out? Where have

557
00:25:23,080 --> 00:25:27,000
Speaker 4: you found that Having been an athlete, your edge can

558
00:25:27,280 --> 00:25:29,400
Speaker 4: lead to Courtside's Alpha.

559
00:25:30,000 --> 00:25:32,080
Speaker 11: Well, I think it's really important you have an inside

560
00:25:32,119 --> 00:25:34,639
Speaker 11: look at what sports looks like and also like what

561
00:25:34,680 --> 00:25:36,639
Speaker 11: people are talking about, what they're interested in, you know.

562
00:25:36,680 --> 00:25:38,200
Speaker 7: So I look at a company.

563
00:25:37,920 --> 00:25:41,679
Speaker 11: Like you Know Tomorrow Sports, who is essentially stood up

564
00:25:41,720 --> 00:25:45,159
Speaker 11: a business that took you know, your grandfather's game and

565
00:25:45,280 --> 00:25:47,280
Speaker 11: made it something that young people will want to watch

566
00:25:47,320 --> 00:25:51,679
Speaker 11: in an indoor stadium environment, right and expanding that you

567
00:25:51,680 --> 00:25:53,399
Speaker 11: know now to the West coast. And you think about

568
00:25:54,280 --> 00:25:58,280
Speaker 11: innovation of games that were maybe older games and finding

569
00:25:58,320 --> 00:26:01,679
Speaker 11: new innovative ways to be able to make experiential. And

570
00:26:01,960 --> 00:26:05,240
Speaker 11: I think people, no matter how much AI and technology evolves,

571
00:26:05,280 --> 00:26:09,200
Speaker 11: like there's a communal aspect to what we liked in sports.

572
00:26:09,520 --> 00:26:11,399
Speaker 11: Like you sit next to a guy at a Giant's

573
00:26:11,440 --> 00:26:13,240
Speaker 11: game and your favorite player scores.

574
00:26:13,040 --> 00:26:14,159
Speaker 7: A touchdown and you high five them.

575
00:26:14,200 --> 00:26:16,040
Speaker 11: You have no idea who they are or where you're from,

576
00:26:16,200 --> 00:26:18,320
Speaker 11: but you're sharing this moment together. And I think the

577
00:26:18,400 --> 00:26:20,600
Speaker 11: more that you can create that, the stronger the sports

578
00:26:20,640 --> 00:26:21,320
Speaker 11: experience will be.

579
00:26:21,640 --> 00:26:23,960
Speaker 4: What's interesting is there's a very global nature to the portfolio,

580
00:26:24,000 --> 00:26:26,720
Speaker 4: and I'm fascinated that you're backing cricket, but you're also

581
00:26:26,760 --> 00:26:30,240
Speaker 4: thinking about, well, the way in which very American, uniquely

582
00:26:30,280 --> 00:26:34,399
Speaker 4: American sports, your own sport football become a global in nature,

583
00:26:34,440 --> 00:26:37,320
Speaker 4: basketball is doing that. How are you seeing when we're

584
00:26:37,440 --> 00:26:39,879
Speaker 4: seeing a world that is almost anti globalization from an

585
00:26:39,880 --> 00:26:43,040
Speaker 4: economic perspective right now becoming more globalized when it comes

586
00:26:43,080 --> 00:26:44,640
Speaker 4: to fandom and when it comes to sports, Well.

587
00:26:44,560 --> 00:26:47,160
Speaker 11: I think sports is really unique because it transcends race,

588
00:26:47,240 --> 00:26:50,679
Speaker 11: it transcends religion, Like it's the one thing that you

589
00:26:50,760 --> 00:26:53,159
Speaker 11: can do and now have to talk about politics, so

590
00:26:53,240 --> 00:26:55,160
Speaker 11: worry about those type of things. And so like when

591
00:26:55,160 --> 00:26:57,399
Speaker 11: I went to India years ago, when I saw I

592
00:26:57,440 --> 00:27:00,240
Speaker 11: was I was at an event with Misatchen, one of

593
00:27:00,320 --> 00:27:02,800
Speaker 11: the best cricket players in the world, and I saw

594
00:27:02,880 --> 00:27:06,000
Speaker 11: he had a ten team security detail, police.

595
00:27:05,720 --> 00:27:07,160
Speaker 7: Officers, and people would literally.

596
00:27:06,920 --> 00:27:08,800
Speaker 11: They weren't asking for autographs, they were literally just trying

597
00:27:08,800 --> 00:27:12,080
Speaker 11: to touch his shirt, right, And so I was like, Wow,

598
00:27:12,440 --> 00:27:15,000
Speaker 11: he's almost a deity. You know, I've been around a

599
00:27:15,000 --> 00:27:17,920
Speaker 11: lot of high profile athletes. I've never seen anybody respond the.

600
00:27:17,880 --> 00:27:18,360
Speaker 3: Way he did.

601
00:27:18,400 --> 00:27:20,800
Speaker 11: Then I saw the IPO at the time and only

602
00:27:20,840 --> 00:27:23,479
Speaker 11: had eight teams in the league, and I look at India,

603
00:27:23,560 --> 00:27:25,920
Speaker 11: it has over forty different cities that have over a

604
00:27:26,000 --> 00:27:29,199
Speaker 11: million people in population that absolutely love the game. And

605
00:27:29,240 --> 00:27:31,680
Speaker 11: you look here the Green Bay Packers, the Pittsburgh Steelers,

606
00:27:31,680 --> 00:27:34,360
Speaker 11: and Memphis Grizzlies. These are all cities that are nowhere near

607
00:27:34,400 --> 00:27:36,879
Speaker 11: five hundred thousand people, six hundred thousand people, and they

608
00:27:36,920 --> 00:27:39,520
Speaker 11: still support these franchises in a massive way. To think

609
00:27:39,560 --> 00:27:42,320
Speaker 11: about the expansion of what could happen in the global

610
00:27:42,320 --> 00:27:44,600
Speaker 11: sport that's followed around the world, and so it's really

611
00:27:44,600 --> 00:27:47,320
Speaker 11: intriguing for me to invest in that well, to be

612
00:27:47,359 --> 00:27:47,639
Speaker 11: able to.

613
00:27:47,680 --> 00:27:50,120
Speaker 4: Keep on investing doing your philanthropic work as well as

614
00:27:50,359 --> 00:27:53,680
Speaker 4: being a key well your deity here for many many

615
00:27:53,720 --> 00:27:56,560
Speaker 4: things of the game. And Vasu so appreciate your time

616
00:27:56,600 --> 00:27:58,840
Speaker 4: here thinking about the world in which we create valuation

617
00:27:58,960 --> 00:28:02,119
Speaker 4: and then maybe not to pro or all in on

618
00:28:02,200 --> 00:28:05,399
Speaker 4: ai way. We thank you Vessel kakhanne Loi Fitzgerald from

619
00:28:05,400 --> 00:28:09,159
Speaker 4: Courtside Ventures and taking it back to you in San Francisco.

620
00:28:09,440 --> 00:28:12,880
Speaker 2: Awesome interview in the private sector Space Venture Space Sports.

621
00:28:12,960 --> 00:28:14,520
Speaker 3: Absolutely love that coverage.

622
00:28:14,680 --> 00:28:17,240
Speaker 2: Let's go back to some of the technology sector movers

623
00:28:17,560 --> 00:28:20,560
Speaker 2: in the public markets right. First of all, Oracle, we're

624
00:28:20,600 --> 00:28:23,680
Speaker 2: now at forty two percent This is the biggest jump

625
00:28:23,680 --> 00:28:27,720
Speaker 2: on Oracle shares since nineteen ninety two. It propels that

626
00:28:27,880 --> 00:28:30,440
Speaker 2: name into the top ten biggest companies on the S

627
00:28:30,480 --> 00:28:33,520
Speaker 2: and P five hundred. It makes Larry Ellison the world's

628
00:28:33,600 --> 00:28:36,520
Speaker 2: richest person. And it's all about an outlook not just

629
00:28:36,560 --> 00:28:38,840
Speaker 2: for this fiscal year on cloud, but all the way

630
00:28:38,840 --> 00:28:41,240
Speaker 2: through the twenty thirty. And there are a number of analysts

631
00:28:41,200 --> 00:28:43,960
Speaker 2: out there saying we are in shock at these numbers.

632
00:28:44,320 --> 00:28:47,840
Speaker 2: To the downside, a very different story. This is Synopsis,

633
00:28:47,880 --> 00:28:51,560
Speaker 2: a company that makes software for chip design. The stocks

634
00:28:51,560 --> 00:28:55,680
Speaker 2: down thirty five percent, biggest drop in history. Why because

635
00:28:55,680 --> 00:28:59,800
Speaker 2: they're getting hit by export restrictions from the United States

636
00:28:59,800 --> 00:29:00,720
Speaker 2: to China.

637
00:29:00,800 --> 00:29:01,720
Speaker 3: And what they've tried to.

638
00:29:01,680 --> 00:29:04,640
Speaker 2: Do is like work very hard on their own intellectual property,

639
00:29:05,040 --> 00:29:08,320
Speaker 2: but that export of American technologies to China being controlled

640
00:29:08,560 --> 00:29:12,000
Speaker 2: or banned, that is materially and directly hit sales. And

641
00:29:12,000 --> 00:29:14,320
Speaker 2: that's the story of that name. Will continue to track

642
00:29:14,360 --> 00:29:17,840
Speaker 2: it elsewhere in technology news. Jobi shares surging as he

643
00:29:17,920 --> 00:29:21,320
Speaker 2: expands its partnership with Uber. As early as next year,

644
00:29:21,640 --> 00:29:24,600
Speaker 2: customers will be able to book Jobey's helicopter and seaplane

645
00:29:24,640 --> 00:29:27,200
Speaker 2: services within the Uber app. I want to get to

646
00:29:27,240 --> 00:29:30,239
Speaker 2: Bloomberg's Natalie Lung, who's here in San Francisco. You and

647
00:29:30,280 --> 00:29:33,360
Speaker 2: I talk about Uber Joby some of the rover taxi

648
00:29:33,440 --> 00:29:34,240
Speaker 2: names all the time.

649
00:29:34,680 --> 00:29:35,600
Speaker 3: Most people would.

650
00:29:35,440 --> 00:29:38,880
Speaker 2: Know Jobi as an ev toll or flying air taxi company.

651
00:29:39,080 --> 00:29:41,160
Speaker 2: But in the near term you need to be really

652
00:29:41,160 --> 00:29:44,240
Speaker 2: specific about this deal with Uber and what the offering

653
00:29:44,280 --> 00:29:45,360
Speaker 2: will be to the consumer.

654
00:29:46,120 --> 00:29:48,920
Speaker 12: And so it really speaks to the opportunity that Jobey

655
00:29:49,040 --> 00:29:52,080
Speaker 12: have here. In the future, people would be able to

656
00:29:52,320 --> 00:29:56,760
Speaker 12: download the Uber app and hail Blade helicopters on their app.

657
00:29:57,760 --> 00:30:01,080
Speaker 12: Right now, it's available in New York in part of

658
00:30:01,240 --> 00:30:04,400
Speaker 12: southern Europe, and so it will be available to the

659
00:30:04,400 --> 00:30:06,880
Speaker 12: millions of people who already have the Uber app on

660
00:30:06,920 --> 00:30:07,520
Speaker 12: their phone.

661
00:30:07,680 --> 00:30:09,840
Speaker 2: Another story you and I've tracked together is what's happening

662
00:30:09,880 --> 00:30:13,640
Speaker 2: in Atlanta in the robotaxi race. The news is Lift

663
00:30:13,840 --> 00:30:17,680
Speaker 2: and Main Mobility a partnership and some rides in that

664
00:30:17,720 --> 00:30:20,640
Speaker 2: market are not really true robotaxi rides.

665
00:30:20,960 --> 00:30:25,160
Speaker 12: Yes, So Lift is finally launching their av cars with

666
00:30:25,280 --> 00:30:28,240
Speaker 12: Mame Mobility in Atlanta today and there will be a

667
00:30:28,280 --> 00:30:31,640
Speaker 12: safety operator at the beginning as they sort of acclimate

668
00:30:31,800 --> 00:30:35,720
Speaker 12: customers to drivelers rides and sort of take over whenever needed,

669
00:30:36,240 --> 00:30:38,800
Speaker 12: and it will also have limited operating hours.

670
00:30:38,800 --> 00:30:41,440
Speaker 3: At the beginning, lift shares up almost three percent.

671
00:30:41,720 --> 00:30:44,880
Speaker 2: Direct correlation with the news We don't necessarily know, but

672
00:30:45,080 --> 00:30:48,040
Speaker 2: plumos Nati lung trific reporting really worth tracking what she's

673
00:30:48,040 --> 00:30:50,640
Speaker 2: looking at in the mobility space. Sticking with the world

674
00:30:50,640 --> 00:30:55,360
Speaker 2: of autonomous vehicles, today, Zeus is officially launching its service

675
00:30:55,520 --> 00:30:58,640
Speaker 2: on and around the Las Vegas Strip. It marks a

676
00:30:58,800 --> 00:31:02,560
Speaker 2: first in the United States for a purpose built robotaxi

677
00:31:02,680 --> 00:31:06,080
Speaker 2: that has no driver controls giving rides to member of

678
00:31:06,080 --> 00:31:09,560
Speaker 2: the public. Members of the public, Zook CEO Ija Evans

679
00:31:09,640 --> 00:31:14,800
Speaker 2: joins us now from Las Vegas. Okay, finally it's happened,

680
00:31:14,880 --> 00:31:16,600
Speaker 2: and I give our audience the context that you and

681
00:31:16,600 --> 00:31:18,760
Speaker 2: I have been talking about this for a very long time.

682
00:31:19,760 --> 00:31:22,080
Speaker 2: There's limits to the service at first, Isha, so to

683
00:31:22,160 --> 00:31:26,240
Speaker 2: start explain the parameters of what you're doing today and

684
00:31:26,280 --> 00:31:27,280
Speaker 2: how you expand it.

685
00:31:28,080 --> 00:31:30,280
Speaker 9: Thank you, good morning, and thank you again for having me.

686
00:31:30,400 --> 00:31:33,200
Speaker 9: I actually had a bet that finally was going to

687
00:31:33,200 --> 00:31:36,320
Speaker 9: be the first thing out of your mouth. So look, well, yes,

688
00:31:36,400 --> 00:31:40,600
Speaker 9: we finally launched it essentially to the public, which is

689
00:31:40,640 --> 00:31:44,280
Speaker 9: really nice. There's an app. Please download it if you're

690
00:31:44,280 --> 00:31:46,600
Speaker 9: in Vegas. And also, by the way, if you're in

691
00:31:46,640 --> 00:31:49,240
Speaker 9: San Francisco, it's coming soon, so you'll get on the

692
00:31:49,280 --> 00:31:51,920
Speaker 9: wait list there. But let's get back to Vegas. Essentially,

693
00:31:52,160 --> 00:31:56,040
Speaker 9: we're starting with five locations Resort World, New York, New

694
00:31:56,160 --> 00:32:00,880
Speaker 9: York Area, fifteen, Luxore, and Top Golf, and you can

695
00:32:00,920 --> 00:32:05,040
Speaker 9: go from one to any of those locations and then

696
00:32:05,720 --> 00:32:10,320
Speaker 9: eleven am to one am. And yeah, you basically call

697
00:32:10,360 --> 00:32:12,840
Speaker 9: it and it comes and gets you and takes you

698
00:32:12,960 --> 00:32:15,840
Speaker 9: to your location, and you enjoy the experience, and we

699
00:32:15,880 --> 00:32:18,120
Speaker 9: hope you do it over and over again, and you

700
00:32:18,160 --> 00:32:21,280
Speaker 9: also tell us about it so that we can keep learning.

701
00:32:21,400 --> 00:32:24,080
Speaker 9: It's free of charge. By the way, for now, two yes.

702
00:32:25,320 --> 00:32:28,160
Speaker 2: I shall a question actually comes from our audience. Is

703
00:32:28,480 --> 00:32:32,000
Speaker 2: a point of clarification. Does the rider in the first

704
00:32:32,080 --> 00:32:35,240
Speaker 2: instance have a choice in the locations that they go to?

705
00:32:35,320 --> 00:32:36,880
Speaker 2: In other ways, they can say through the app, I

706
00:32:36,880 --> 00:32:39,160
Speaker 2: want to go from point A to point B, or

707
00:32:39,160 --> 00:32:41,600
Speaker 2: do you have to follow a predetermined route?

708
00:32:42,280 --> 00:32:44,800
Speaker 9: Nope, you have a choice. You pick your location and

709
00:32:45,080 --> 00:32:47,560
Speaker 9: we will pick the best route at the time to

710
00:32:47,600 --> 00:32:49,480
Speaker 9: get you there. You might go to the same look

711
00:32:49,680 --> 00:32:52,800
Speaker 9: between two locations several times and go a slightly different

712
00:32:52,800 --> 00:32:56,520
Speaker 9: way because we'll adjust depending on what's going on around

713
00:32:56,520 --> 00:32:58,800
Speaker 9: the strip. So you pick your location and we take

714
00:32:58,840 --> 00:32:59,160
Speaker 9: you there.

715
00:33:00,680 --> 00:33:03,880
Speaker 2: The technology difference with zeokes is that it is a

716
00:33:04,040 --> 00:33:07,080
Speaker 2: vehicle that has no steering wheel and no pedals. It

717
00:33:07,120 --> 00:33:11,120
Speaker 2: has four inward facing seats. But you have been slower

718
00:33:11,160 --> 00:33:15,160
Speaker 2: to deploy to the public than other robotaxi companies that

719
00:33:15,320 --> 00:33:20,240
Speaker 2: use retrofitted consumer vehicles that do have driver controls. Was

720
00:33:20,280 --> 00:33:24,280
Speaker 2: it worth it giving up first mover advantage to go

721
00:33:24,440 --> 00:33:27,400
Speaker 2: down the regulatory path and the relationship path that you

722
00:33:27,480 --> 00:33:28,680
Speaker 2: have with various cities.

723
00:33:29,800 --> 00:33:32,080
Speaker 9: Oh, it was definitely worth it. First of all, I mean,

724
00:33:32,120 --> 00:33:34,080
Speaker 9: I think we've been deliberate is how I like to

725
00:33:34,120 --> 00:33:36,760
Speaker 9: call it, and very measured. This is the beginning of

726
00:33:36,840 --> 00:33:40,239
Speaker 9: a massive way that will be a big market and

727
00:33:40,280 --> 00:33:44,960
Speaker 9: that will frankly change how people move around cities and beyond.

728
00:33:45,720 --> 00:33:48,760
Speaker 9: And so it was definitely worth it because the experience

729
00:33:48,840 --> 00:33:51,960
Speaker 9: is magical. Because we've done it right, We've gone to

730
00:33:52,000 --> 00:33:55,680
Speaker 9: the final solution from the beginning, We've learned a lot

731
00:33:55,800 --> 00:34:00,719
Speaker 9: along the way. We've thought about serviceability, we've been right obsessed,

732
00:34:01,000 --> 00:34:04,480
Speaker 9: We've thought about the business and operations at scale, and

733
00:34:04,560 --> 00:34:08,520
Speaker 9: so we are absolutely thrilled with the bas we've chosen.

734
00:34:08,560 --> 00:34:10,560
Speaker 9: I was start very young, at a young age.

735
00:34:10,680 --> 00:34:11,200
Speaker 8: Do it right.

736
00:34:11,280 --> 00:34:12,040
Speaker 9: The first time.

737
00:34:13,360 --> 00:34:17,000
Speaker 2: I've been on the Las Vegas Strip in the Zookes vehicle,

738
00:34:17,160 --> 00:34:20,759
Speaker 2: actually more than once, you know, the experience is more

739
00:34:20,800 --> 00:34:23,799
Speaker 2: akin to getting into an airport shuttle with respect. You

740
00:34:23,840 --> 00:34:28,240
Speaker 2: don't feel like you're in a consumer car. You opened

741
00:34:28,320 --> 00:34:31,920
Speaker 2: up the availability today. Is there a sort of weight

742
00:34:32,000 --> 00:34:34,960
Speaker 2: list arrangement in Las Vegas? Was the demand so great

743
00:34:35,040 --> 00:34:37,200
Speaker 2: that you have a backlog of people to on board

744
00:34:37,600 --> 00:34:38,919
Speaker 2: or what has the response been.

745
00:34:39,719 --> 00:34:42,719
Speaker 9: The response has been awesome. As you know, we've been

746
00:34:42,800 --> 00:34:45,239
Speaker 9: carrying members of the public, but on fixed route, just

747
00:34:45,280 --> 00:34:48,600
Speaker 9: to get out bearings and get everything ready, and I've

748
00:34:48,640 --> 00:34:51,200
Speaker 9: frankly I undercall the demand. So I think I need

749
00:34:51,239 --> 00:34:54,960
Speaker 9: to get out of the demand forecasting business as far

750
00:34:55,000 --> 00:34:58,600
Speaker 9: as Las Vegas from today onward, there's no weightlist. You

751
00:34:59,040 --> 00:35:01,719
Speaker 9: essentially sign up and you're right. And I'm a little

752
00:35:01,760 --> 00:35:04,799
Speaker 9: nervous today because I'm like, oh my gosh, I hope

753
00:35:04,800 --> 00:35:07,840
Speaker 9: it's not too many people, because obviously we want to

754
00:35:08,040 --> 00:35:10,480
Speaker 9: want to provide a great experience, but it's going to

755
00:35:10,520 --> 00:35:13,759
Speaker 9: be wonderful. We are we are We're just thrilled to

756
00:35:13,840 --> 00:35:15,879
Speaker 9: bring this to people. As you know, we've been at

757
00:35:15,880 --> 00:35:19,560
Speaker 9: this for over a decade. We've been measured, we've had

758
00:35:20,239 --> 00:35:23,759
Speaker 9: a very consistent vision. We you know, if it had

759
00:35:23,760 --> 00:35:28,560
Speaker 9: to be resilient, and we we are excited to share

760
00:35:28,640 --> 00:35:29,760
Speaker 9: this with others.

761
00:35:30,800 --> 00:35:33,920
Speaker 2: What is the strategy to start charging fares first in

762
00:35:34,000 --> 00:35:36,640
Speaker 2: Las Vegas and then later in San Francisco.

763
00:35:37,480 --> 00:35:39,720
Speaker 9: So what you can expect is, first of all, everything

764
00:35:39,760 --> 00:35:43,520
Speaker 9: is always pending regulatory approval. But what you can expect

765
00:35:43,560 --> 00:35:46,440
Speaker 9: in Vegas is that we will be adding more and

766
00:35:46,520 --> 00:35:49,960
Speaker 9: more locations. Uh. You know, this is the entertainment capital

767
00:35:50,000 --> 00:35:51,640
Speaker 9: of the world, so we have a pretty good idea

768
00:35:51,719 --> 00:35:54,880
Speaker 9: of where people like to go and why, and more robots,

769
00:35:55,080 --> 00:35:59,719
Speaker 9: more destinations. Will also be upgrading the customer experience along

770
00:35:59,760 --> 00:36:04,480
Speaker 9: the world. And after regulatory approval, and the end is

771
00:36:04,600 --> 00:36:08,000
Speaker 9: very important, after we've also had all of the learnings

772
00:36:08,000 --> 00:36:12,320
Speaker 9: that we're seeking, so that we have really a delightful, consistent,

773
00:36:12,440 --> 00:36:15,600
Speaker 9: magical experience, we'll start collecting fairs.

774
00:36:16,800 --> 00:36:19,279
Speaker 3: Zooks, Ceo, Ei share Evans, thank you very much.

775
00:36:26,000 --> 00:36:28,919
Speaker 2: AI coding startup replet has raised two hundred and fifty

776
00:36:28,960 --> 00:36:31,880
Speaker 2: million dollars in a new funding round that nearly triples

777
00:36:31,920 --> 00:36:35,920
Speaker 2: its valuation to three billion dollars. Prison Capitals leading the

778
00:36:35,960 --> 00:36:39,840
Speaker 2: financing round, which includes investors such as American Express Ventures

779
00:36:39,960 --> 00:36:43,880
Speaker 2: and Google's AI Futures Fund, with existing backers including Andrews

780
00:36:43,960 --> 00:36:47,160
Speaker 2: and Horowitz and y Combinator to sign a strong investor

781
00:36:47,200 --> 00:36:50,920
Speaker 2: demand for companies using AI for software development.

782
00:36:51,000 --> 00:36:56,560
Speaker 4: Right, Cara, Right, let's creek talking about the haves that

783
00:36:56,640 --> 00:36:58,359
Speaker 4: have nots. Who's got the money, who's got the checks?

784
00:36:58,360 --> 00:37:01,600
Speaker 4: Whether it's all about AI? Town Minos with US partner

785
00:37:01,600 --> 00:37:05,080
Speaker 4: and Index Ventures helped found its New York City presence

786
00:37:05,400 --> 00:37:07,279
Speaker 4: here back in twenty twenty two. Who now sits with

787
00:37:07,320 --> 00:37:10,560
Speaker 4: me at Primary Submit Summit right here in the city Marta.

788
00:37:11,440 --> 00:37:15,840
Speaker 4: We see the extraordinary valuations of general to AI enabling companies.

789
00:37:16,600 --> 00:37:18,840
Speaker 4: Is that really where the activity still is?

790
00:37:18,840 --> 00:37:20,239
Speaker 3: Is there room and oxygen in.

791
00:37:20,160 --> 00:37:21,080
Speaker 4: The room for others?

792
00:37:21,719 --> 00:37:24,080
Speaker 13: I think that's where the majority of the activity is.

793
00:37:24,719 --> 00:37:28,359
Speaker 13: We see about two thirds of our deals or in

794
00:37:28,400 --> 00:37:32,480
Speaker 13: the GENI space. But there's also other big areas that

795
00:37:32,560 --> 00:37:34,600
Speaker 13: are still very active. You know, we still do a

796
00:37:34,680 --> 00:37:36,600
Speaker 13: lot in healthcare, there's a lot in fintech.

797
00:37:37,400 --> 00:37:38,920
Speaker 7: So it's not all GENI.

798
00:37:39,400 --> 00:37:42,600
Speaker 13: The other thing is that JENI is becoming everything you

799
00:37:42,640 --> 00:37:45,680
Speaker 13: know there, you know, you're talking about healthcare, while a

800
00:37:45,719 --> 00:37:48,560
Speaker 13: lot of the activity in health care is GENI related,

801
00:37:48,600 --> 00:37:53,480
Speaker 13: you know, optimizing back office, improving patient interactions. So I

802
00:37:53,480 --> 00:37:56,959
Speaker 13: think this distinction is going to become obsolete very very soon.

803
00:37:57,239 --> 00:38:00,000
Speaker 4: Well, we just had Sebastian of Klana as the company

804
00:38:00,200 --> 00:38:03,359
Speaker 4: goes public, he very clear adopter of general to AI

805
00:38:03,480 --> 00:38:06,400
Speaker 4: within his fintech business. It's a European star that's listed

806
00:38:06,440 --> 00:38:10,239
Speaker 4: in America. You have a European UK based star and Revolute.

807
00:38:10,680 --> 00:38:12,640
Speaker 4: How hot is the fintech space going to be after

808
00:38:12,719 --> 00:38:13,960
Speaker 4: this successful accident?

809
00:38:14,000 --> 00:38:15,800
Speaker 13: Looks like at this Yeah, first of all, congrats to

810
00:38:16,320 --> 00:38:19,320
Speaker 13: Kloanna and what looks to be a very success successful IPO.

811
00:38:19,640 --> 00:38:25,200
Speaker 13: I think it's a fantastic precedent for European companies. Fifteen

812
00:38:25,239 --> 00:38:28,759
Speaker 13: billion plus. It's an amazing, amazing outcome for a great

813
00:38:28,800 --> 00:38:29,840
Speaker 13: and very unique business.

814
00:38:29,880 --> 00:38:30,759
Speaker 7: I think it shows that you.

815
00:38:30,680 --> 00:38:35,600
Speaker 13: Can build giant technological companies from Europe, which you know

816
00:38:35,760 --> 00:38:38,200
Speaker 13: there are some doughters out there, but I think you know,

817
00:38:38,239 --> 00:38:41,280
Speaker 13: with Spotify and Adi and Klana and then in the future,

818
00:38:41,560 --> 00:38:44,360
Speaker 13: the lacks of Revolute, this is coming, you know, again,

819
00:38:44,520 --> 00:38:47,360
Speaker 13: again and again. I think the reality with fintech is

820
00:38:47,400 --> 00:38:49,439
Speaker 13: that there were a lot of doughters, you know, saying, well,

821
00:38:49,760 --> 00:38:52,680
Speaker 13: you know, how they're going to replace banks, how they're

822
00:38:52,719 --> 00:38:55,239
Speaker 13: going to compete effectively at the cost of capital is.

823
00:38:55,520 --> 00:38:56,759
Speaker 7: Higher, and so on and so forth.

824
00:38:56,800 --> 00:38:58,480
Speaker 13: And I think what you're seeing is a lot of

825
00:38:58,520 --> 00:39:04,120
Speaker 13: incredible businesses being created that are increasingly taking market share

826
00:39:04,600 --> 00:39:09,439
Speaker 13: and customers by being way more customer friendly, adopting new tools,

827
00:39:09,480 --> 00:39:12,720
Speaker 13: offering new products way faster, and clanizing with the example

828
00:39:12,760 --> 00:39:14,919
Speaker 13: of that, and revelut is a full an even better

829
00:39:14,960 --> 00:39:15,480
Speaker 13: example of that.

830
00:39:15,840 --> 00:39:18,400
Speaker 4: I mean, you are all in on the EU and

831
00:39:18,520 --> 00:39:21,840
Speaker 4: European success stories, but you and I are both European

832
00:39:21,880 --> 00:39:25,040
Speaker 4: transplants moving here to America. Is the reality that the

833
00:39:25,080 --> 00:39:28,320
Speaker 4: liquidity is here. When companies eventually do to go public,

834
00:39:28,360 --> 00:39:30,440
Speaker 4: they're going to want to come to the US capital markets.

835
00:39:31,239 --> 00:39:35,520
Speaker 13: I think in general the US capital markets or deeper

836
00:39:36,239 --> 00:39:39,319
Speaker 13: there's more capital, there's more analysts, there's more knowledge. So

837
00:39:39,360 --> 00:39:42,920
Speaker 13: there's clearly a geographical network effect that is happening is

838
00:39:42,960 --> 00:39:46,440
Speaker 13: getting stronger. With every ip O, the pool gets stronger

839
00:39:46,440 --> 00:39:48,759
Speaker 13: and stronger. So I think there is this is the

840
00:39:48,800 --> 00:39:50,800
Speaker 13: primary market. This is the most of the markets for

841
00:39:50,880 --> 00:39:54,160
Speaker 13: most competitions only European. The same for look at New

842
00:39:54,200 --> 00:39:57,200
Speaker 13: Bank and other fintech Darling listed in New York as well,

843
00:39:57,239 --> 00:40:01,399
Speaker 13: although only present in mostly in Brazilian and Latin America,

844
00:40:01,480 --> 00:40:04,399
Speaker 13: so it's not European only phenomenon. What I would say

845
00:40:04,440 --> 00:40:09,200
Speaker 13: is if I were a European markets I would try

846
00:40:09,239 --> 00:40:12,799
Speaker 13: to be way more competitive. It's not only about being

847
00:40:12,840 --> 00:40:16,799
Speaker 13: on par with US market. It's about offering more too

848
00:40:17,000 --> 00:40:20,520
Speaker 13: entrepreneurs and founders, two early investors, to make sure you

849
00:40:20,560 --> 00:40:22,759
Speaker 13: can you can attract them and you can compete. Otherwise

850
00:40:23,200 --> 00:40:26,440
Speaker 13: this geographical network effect, we just keep on getting stronger.

851
00:40:26,719 --> 00:40:29,680
Speaker 13: And yes, most European companies will end up being being

852
00:40:29,719 --> 00:40:30,360
Speaker 13: listed here.

853
00:40:30,560 --> 00:40:33,160
Speaker 4: No, you offer a lot to founders and in the expensures.

854
00:40:33,200 --> 00:40:35,600
Speaker 4: I want an extraordinary year you're having. I'm thinking about

855
00:40:35,600 --> 00:40:39,840
Speaker 4: the Figma IPO success. You've had significant exits. When I

856
00:40:39,840 --> 00:40:42,480
Speaker 4: think of M and A and Whiz, how does that

857
00:40:42,600 --> 00:40:45,960
Speaker 4: change the inbound that you're getting When everyone's seeing index

858
00:40:46,080 --> 00:40:48,000
Speaker 4: so clearly on the map. It always has been from

859
00:40:48,000 --> 00:40:51,759
Speaker 4: a geographical perspective, wins in the US, in Israel and Europe.

860
00:40:52,000 --> 00:40:54,600
Speaker 13: Yeah, it's we do have a lot of we do

861
00:40:54,680 --> 00:40:57,040
Speaker 13: have a lot of inbound. It's a it's been a

862
00:40:57,040 --> 00:41:00,600
Speaker 13: fantastic here kind of an overnight success, ten fifteen years

863
00:41:00,640 --> 00:41:02,480
Speaker 13: in the making, you know, like fig Mar, we've been

864
00:41:02,480 --> 00:41:06,000
Speaker 13: investors for one more than ten years, so you know,

865
00:41:06,040 --> 00:41:08,680
Speaker 13: it's all happening, you know now in some ways because

866
00:41:08,960 --> 00:41:11,560
Speaker 13: the market is open, the window is open. But they

867
00:41:11,719 --> 00:41:14,120
Speaker 13: have been a relationship that we've been working with for

868
00:41:14,360 --> 00:41:18,080
Speaker 13: decade decade plus, and that way we bet very early

869
00:41:18,120 --> 00:41:21,399
Speaker 13: on on his very young founders. I mean, Dylan was

870
00:41:22,000 --> 00:41:24,680
Speaker 13: nineteen when we first invested in him, were still an intern,

871
00:41:25,840 --> 00:41:29,040
Speaker 13: you know, Alex at Scale was twenty one. We is

872
00:41:29,640 --> 00:41:31,640
Speaker 13: you know, our staff, we've been working with him for

873
00:41:32,040 --> 00:41:34,360
Speaker 13: his previous business already, so more than a decade.

874
00:41:34,400 --> 00:41:36,520
Speaker 7: So those are very very long.

875
00:41:36,400 --> 00:41:41,720
Speaker 13: Term relationships that happened to materialize in some exits now.

876
00:41:42,120 --> 00:41:44,000
Speaker 13: But I think that's the way we think about the business.

877
00:41:44,040 --> 00:41:46,640
Speaker 13: It's not about, oh, the markets open, let's invest more

878
00:41:46,680 --> 00:41:49,120
Speaker 13: and let's have a quick you know, make a quick book.

879
00:41:49,480 --> 00:41:52,080
Speaker 13: You know, we're investing in the very long term, and

880
00:41:52,160 --> 00:41:54,359
Speaker 13: investments we make now, we know they're going to take

881
00:41:54,440 --> 00:41:58,000
Speaker 13: a decade plus to flourish and turn into very large,

882
00:41:58,320 --> 00:42:00,600
Speaker 13: hopefully independent and public companies, and.

883
00:42:00,480 --> 00:42:02,960
Speaker 4: That makes help. He's excited and committed to stay with you.

884
00:42:03,080 --> 00:42:07,160
Speaker 4: Very briefly, how's it changing the landscape of VC there?

885
00:42:06,960 --> 00:42:10,560
Speaker 13: There is a bit of a meme out there where

886
00:42:11,200 --> 00:42:13,760
Speaker 13: people thinking that vics are going to follow the heads

887
00:42:13,760 --> 00:42:16,320
Speaker 13: fund and and especially the product with the industry where

888
00:42:16,680 --> 00:42:19,440
Speaker 13: you either go very very big or you stay very

889
00:42:19,480 --> 00:42:22,120
Speaker 13: very niche and there is no place in between. I

890
00:42:22,120 --> 00:42:24,960
Speaker 13: think our view al index is slightly different where we

891
00:42:25,080 --> 00:42:28,840
Speaker 13: believe there is actually a midium ground that is the best,

892
00:42:29,200 --> 00:42:31,880
Speaker 13: not not necessarily for for the GPS and and and

893
00:42:31,920 --> 00:42:34,840
Speaker 13: the and the vcs themselves, but definitely for the entrepreneurs

894
00:42:34,840 --> 00:42:38,719
Speaker 13: where you need enough scale to support entrepreneurs on the

895
00:42:38,800 --> 00:42:41,719
Speaker 13: global basis. You know we cover from Tel Aviv, San Francisco.

896
00:42:42,000 --> 00:42:44,000
Speaker 13: You need to offer them the services that they need

897
00:42:44,040 --> 00:42:46,120
Speaker 13: in terms of hiring, in terms of marketing, in terms

898
00:42:46,120 --> 00:42:48,000
Speaker 13: of sales and customer development.

899
00:42:48,680 --> 00:42:49,879
Speaker 7: So you need a certain.

900
00:42:49,840 --> 00:42:53,400
Speaker 13: Size to pay for that infrastructure. But you also want

901
00:42:53,440 --> 00:42:56,680
Speaker 13: to be too big that you become a corporation and

902
00:42:56,920 --> 00:42:59,200
Speaker 13: you know you have kind of conveyor belt of founders

903
00:42:59,200 --> 00:43:02,920
Speaker 13: and it's and there is no individual relationship. Again, No,

904
00:43:03,000 --> 00:43:06,560
Speaker 13: we're investing in people very early on, very often India

905
00:43:06,640 --> 00:43:10,520
Speaker 13: journey when they are nineteen twenty twenty one, and that

906
00:43:10,719 --> 00:43:13,480
Speaker 13: require us to a level of empathy or the level

907
00:43:13,560 --> 00:43:18,360
Speaker 13: or understanding that takes just this interpret interpersonal relationship that

908
00:43:18,400 --> 00:43:19,719
Speaker 13: you lose when you get to.

909
00:43:19,920 --> 00:43:22,359
Speaker 7: A very loud loud scale. The very loud scale can.

910
00:43:22,280 --> 00:43:24,920
Speaker 13: Be very good for the GPS themselves, but not necessarily

911
00:43:24,920 --> 00:43:27,000
Speaker 13: what the funders really really needed. So I think that's

912
00:43:27,040 --> 00:43:30,719
Speaker 13: why we're sticking to that kind of middle size, and

913
00:43:30,800 --> 00:43:31,840
Speaker 13: we think that's the best approach.

914
00:43:32,320 --> 00:43:36,080
Speaker 4: Latin Minion from Index ensures. We so appreciate having him

915
00:43:36,120 --> 00:43:38,960
Speaker 4: here for the interpersonal relationship that keeps on going. Meanwhile,

916
00:43:39,120 --> 00:43:40,920
Speaker 4: stick around in the next hour for an interview with

917
00:43:41,000 --> 00:43:44,840
Speaker 4: New York Governor Kathie hokel right here from primary summit

918
00:43:45,120 --> 00:43:45,879
Speaker 4: in New York at.

919
00:43:47,400 --> 00:43:48,160
Speaker 3: Okay coming up.

920
00:43:48,440 --> 00:43:52,719
Speaker 2: First responders have told Blomberg that the design of some

921
00:43:52,880 --> 00:43:57,040
Speaker 2: Tesla features, such as mechanical releases for the doors, you

922
00:43:57,120 --> 00:44:01,520
Speaker 2: can add complication in the chaotic mind moments after a crash.

923
00:44:01,560 --> 00:44:04,319
Speaker 2: We're gonna have the details next on a Deep Bloomberg investigation.

924
00:44:04,719 --> 00:44:05,800
Speaker 3: This is Bloomberg Tech.

925
00:44:12,920 --> 00:44:17,560
Speaker 2: Design features on Tesla's electric vehicles, including battery powered door

926
00:44:17,640 --> 00:44:22,440
Speaker 2: handles and mechanical releases, have complicated crashes and emergency situations.

927
00:44:22,560 --> 00:44:26,680
Speaker 2: In particular, when Tesla's lose power, crashes can turn into

928
00:44:26,680 --> 00:44:30,839
Speaker 2: deadly races against time. Reporting by Bloomberg News has found

929
00:44:30,840 --> 00:44:33,720
Speaker 2: that regulators have been slow to act and complaints about

930
00:44:33,719 --> 00:44:37,080
Speaker 2: Tesla's doors have piled up. I want to bring in

931
00:44:37,080 --> 00:44:39,480
Speaker 2: Bloomberg's done a whole part of the team that reported this.

932
00:44:39,600 --> 00:44:44,440
Speaker 2: What we are talking about in particular is the mechanical override,

933
00:44:45,040 --> 00:44:47,880
Speaker 2: partly in the rear doors of some TESTSA vehicles that

934
00:44:47,960 --> 00:44:50,520
Speaker 2: you need to use in the event that, in an accident,

935
00:44:50,800 --> 00:44:54,600
Speaker 2: a Tesla vehicle loses power. Take us from that point

936
00:44:54,800 --> 00:44:57,160
Speaker 2: and explain the investigation that Bloomberg News did.

937
00:44:57,480 --> 00:44:59,880
Speaker 14: Yeah, So, to back up for a second, Tesla's our

938
00:45:00,000 --> 00:45:02,680
Speaker 14: Tustle vehicles have two batteries. There is the battery that

939
00:45:02,840 --> 00:45:05,600
Speaker 14: powers the car and dictates the range, and then there's

940
00:45:05,640 --> 00:45:08,799
Speaker 14: a low voltage battery, typically twelve volts. In the cyber truck,

941
00:45:08,840 --> 00:45:11,800
Speaker 14: it's forty eight volts that powers things like the windows,

942
00:45:12,160 --> 00:45:15,560
Speaker 14: the doors, and the touch screen. If you lose power,

943
00:45:15,600 --> 00:45:19,040
Speaker 14: whether because that low voltage battery dies or you're in

944
00:45:19,080 --> 00:45:21,120
Speaker 14: a crash, the doors lock.

945
00:45:21,280 --> 00:45:22,399
Speaker 8: And you have to get out.

946
00:45:22,400 --> 00:45:24,480
Speaker 14: You have to know where the mechanical release is, and

947
00:45:24,560 --> 00:45:26,880
Speaker 14: finding that mechanical release can be really challenging.

948
00:45:27,120 --> 00:45:32,400
Speaker 2: There have been some events, case studies, examples in recent

949
00:45:32,520 --> 00:45:40,080
Speaker 2: years where in fatal crashes the role or the function

950
00:45:40,160 --> 00:45:42,400
Speaker 2: of the mechanical override was a factor.

951
00:45:42,400 --> 00:45:43,800
Speaker 3: Can you explain what we learned?

952
00:45:44,280 --> 00:45:44,480
Speaker 8: Yeah?

953
00:45:44,480 --> 00:45:46,520
Speaker 14: So there have been several crashes, and the trick about

954
00:45:46,560 --> 00:45:49,479
Speaker 14: crashes is that unfortunately a lot of the people are dead,

955
00:45:49,600 --> 00:45:52,480
Speaker 14: so we can't interview them. But I found a crash

956
00:45:52,480 --> 00:45:56,560
Speaker 14: in Virginia where this couple was in a terrible crash.

957
00:45:57,040 --> 00:45:58,840
Speaker 14: Scores of people ran to their aid to try to

958
00:45:58,840 --> 00:46:00,520
Speaker 14: help them, and they could not open the doors from

959
00:46:00,520 --> 00:46:02,719
Speaker 14: the outside. They had to break a window in order

960
00:46:02,760 --> 00:46:06,840
Speaker 14: to finally reach in and use the job use hydraulic

961
00:46:06,840 --> 00:46:08,040
Speaker 14: cutters to cut the door open.

962
00:46:08,760 --> 00:46:12,800
Speaker 2: This is a deeply reported It's a long form written piece,

963
00:46:12,800 --> 00:46:14,560
Speaker 2: so I would say to the audience, go out and

964
00:46:14,600 --> 00:46:17,360
Speaker 2: read it. Has TESLA responded to our reporting?

965
00:46:17,719 --> 00:46:18,120
Speaker 8: They have not.

966
00:46:18,239 --> 00:46:20,400
Speaker 14: I mean they were given an opportunity to respond, but

967
00:46:20,440 --> 00:46:21,840
Speaker 14: they typically don't engage.

968
00:46:21,920 --> 00:46:25,359
Speaker 2: Have any of the relevant regulatory agencies engage with us

969
00:46:25,360 --> 00:46:26,719
Speaker 2: on the reporting.

970
00:46:27,120 --> 00:46:29,560
Speaker 14: Not really, And I think the thing that's important to

971
00:46:29,640 --> 00:46:31,839
Speaker 14: note is that there's really a gap in terms of

972
00:46:31,920 --> 00:46:35,799
Speaker 14: how the regulations around these crashes are currently laid out.

973
00:46:36,360 --> 00:46:38,839
Speaker 14: Crash testing in the United States really focuses on how

974
00:46:38,880 --> 00:46:41,640
Speaker 14: well does a Tesla does a vehicle perform in like

975
00:46:41,680 --> 00:46:45,760
Speaker 14: a rollover crash, and Tesla has an exemplary safety record

976
00:46:46,200 --> 00:46:49,400
Speaker 14: five stars across all categories in many ways, but our

977
00:46:49,480 --> 00:46:52,320
Speaker 14: crash testing doesn't look at what happens to a human

978
00:46:52,360 --> 00:46:54,719
Speaker 14: being after a crash. How easy is it to get

979
00:46:54,719 --> 00:46:56,879
Speaker 14: out of the vehicle, how easy is it for first

980
00:46:56,920 --> 00:46:59,359
Speaker 14: responders to get in? And you're seeing more and more

981
00:46:59,440 --> 00:47:04,120
Speaker 14: cars electric door handles and very strong glass that's making

982
00:47:04,160 --> 00:47:05,440
Speaker 14: egress more difficult.

983
00:47:05,840 --> 00:47:07,960
Speaker 2: I drive a tested vehicle, as you know, and actually

984
00:47:08,080 --> 00:47:10,000
Speaker 2: the regular views of the show, no, I've never been

985
00:47:10,040 --> 00:47:12,040
Speaker 2: in a crash, and I've never had to be in

986
00:47:12,040 --> 00:47:14,440
Speaker 2: a situation where I've used the manual override because the

987
00:47:14,440 --> 00:47:15,480
Speaker 2: battery has lost power.

988
00:47:15,560 --> 00:47:16,920
Speaker 14: Do you know where your manual override is?

989
00:47:17,040 --> 00:47:17,359
Speaker 9: I do.

990
00:47:17,440 --> 00:47:19,960
Speaker 2: So it's different between the front, which is basically a

991
00:47:20,040 --> 00:47:22,120
Speaker 2: latch in the rear where you remove a pad and

992
00:47:22,160 --> 00:47:25,440
Speaker 2: there is a wire mechanism. What I understood from sources

993
00:47:25,680 --> 00:47:28,359
Speaker 2: in assisting in the reporting. A little bit was that

994
00:47:28,440 --> 00:47:30,520
Speaker 2: you think about the cyber truck in particular, could you

995
00:47:30,560 --> 00:47:34,280
Speaker 2: explain why the design or the shape of the vehicle

996
00:47:34,960 --> 00:47:38,440
Speaker 2: requires such a mechanism in the rear away from battery

997
00:47:38,560 --> 00:47:39,240
Speaker 2: just very quickly.

998
00:47:39,440 --> 00:47:41,560
Speaker 14: Yeah, Well, the doors are very flat or very flat,

999
00:47:41,600 --> 00:47:45,560
Speaker 14: so there's not as much room inside inside the door

1000
00:47:45,920 --> 00:47:49,040
Speaker 14: the door panel for those electronic releases. And I think

1001
00:47:49,120 --> 00:47:52,520
Speaker 14: also child safety latches is also a big part of it.

1002
00:47:52,560 --> 00:47:54,520
Speaker 14: You don't want kids to be able to easily open

1003
00:47:54,560 --> 00:47:57,480
Speaker 14: a door from the back seat. But then the downside

1004
00:47:57,520 --> 00:47:59,040
Speaker 14: is that it's very difficult to get out.

1005
00:47:59,400 --> 00:48:01,759
Speaker 2: Bloomberg's on a whole with a Bloomberg Big take, go

1006
00:48:01,840 --> 00:48:04,360
Speaker 2: and read it. We asked Tesla for comment. We invite

1007
00:48:04,400 --> 00:48:07,120
Speaker 2: Tesla to comment if and when they're ready to do so.

1008
00:48:07,239 --> 00:48:10,680
Speaker 2: That does it for this edition of Bloomberg Tech Up. Next,

1009
00:48:10,920 --> 00:48:14,400
Speaker 2: New York Governor Kathi Hokel joins Bloomberg.

1010
00:48:13,920 --> 00:48:15,800
Speaker 3: TV from the Primary Summit.

1011
00:48:15,960 --> 00:48:18,239
Speaker 2: That's a conversation with Caroline that you do not want

1012
00:48:18,280 --> 00:48:20,719
Speaker 2: to miss coming up. A lot happened in the show

1013
00:48:20,840 --> 00:48:23,560
Speaker 2: actually on a market basis. It was a historic day

1014
00:48:23,600 --> 00:48:26,960
Speaker 2: for Oracle for Larry Ellison. We recapped Apple in the

1015
00:48:27,000 --> 00:48:30,120
Speaker 2: iPhone seventeen generation event and that big take on Tesla.

1016
00:48:30,480 --> 00:48:32,839
Speaker 2: That's the podcast. You know where to find it. From

1017
00:48:32,880 --> 00:48:34,640
Speaker 2: San Francisco, from New York.

1018
00:48:34,880 --> 00:48:35,959
Speaker 3: This is Bloomberg Tech.