WEBVTT - Earnings Round-Up, Creating With AI 0:00:01.400 --> 0:00:06.680 From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.040 --> 0:00:10.480 This is Bloomberg Technology with Caroline Hyde. 0:00:10.160 --> 0:00:11.559 And Ed Ludlow. 0:00:25.760 --> 0:00:29.240 Live from London for the Bloomberg Technology Summit. I'm Caroline Hyde. 0:00:29.160 --> 0:00:32.680 And I'm Ed Ludlow in San Francisco. This is Bloomberg Technology. 0:00:33.760 --> 0:00:35.640 Coming up. We'll have full earnings coverage. 0:00:35.680 --> 0:00:38.360 Ahead is Spotify reports the results, and Google and Microsoft 0:00:38.560 --> 0:00:39.000 we're going to. 0:00:39.040 --> 0:00:40.960 Deliver after the bell, We've got you covered. 0:00:41.760 --> 0:00:44.839 Plus, we'll hear from Reddick co founder Alexis o'hanian to 0:00:44.920 --> 0:00:48.280 talk his investments in AI and crypto are they living 0:00:48.320 --> 0:00:49.080 up to the hype? 0:00:50.280 --> 0:00:53.160 And with the Bloomberg Tech Summit underway in London, we'll 0:00:53.159 --> 0:00:57.120 hear from executives from Anthropic Delivery and so much more so. 0:00:57.160 --> 0:01:00.240 After the bell we get the giants Microsoft in alphabet. 0:01:00.400 --> 0:01:02.280 There's going to be interested in the cloud division of 0:01:02.280 --> 0:01:05.280 those two names, right, There always is, But there will 0:01:05.280 --> 0:01:07.959 also be intense interests in artificial intelligence. I guess by 0:01:07.959 --> 0:01:10.679 this stage we ask how is that showing up in sales? 0:01:10.720 --> 0:01:12.600 All of the R and D and investment in large 0:01:12.640 --> 0:01:15.800 language or foundation models, are they actually making any money 0:01:15.800 --> 0:01:17.760 from it? Top of mine right now is what's top 0:01:17.800 --> 0:01:20.080 of the list. Spotify on track for its biggest jump 0:01:20.280 --> 0:01:23.160 since January thirty first of this year, trading near its 0:01:23.200 --> 0:01:26.240 highest level since July. Top line beat, bottom line beat, 0:01:26.400 --> 0:01:29.679 premium subscriber beat, monthly active users beat. Let's get straight 0:01:29.680 --> 0:01:32.760 to the details with Bloomberg's Ashley Carmen and Ashley I 0:01:32.760 --> 0:01:35.520 guess the question is what is in the earnings playlist 0:01:35.520 --> 0:01:37.080 for Spotify? What were the top numbers? 0:01:38.360 --> 0:01:41.160 Yeah, so the big headline item is that Spotify turn 0:01:41.200 --> 0:01:44.240 to profit in the third quarter at thirty two million 0:01:44.280 --> 0:01:47.200 euro and that definitely was a surprise for analysts who 0:01:47.200 --> 0:01:50.160 were expecting a pretty significant loss. 0:01:50.960 --> 0:01:52.840 And they'd say it's an inflection point. 0:01:52.880 --> 0:01:54.680 Can you tell us what really been the drivers of 0:01:54.720 --> 0:01:55.240 growth here? 0:01:56.400 --> 0:01:57.160 Yeah, for sure. 0:01:57.280 --> 0:01:59.960 So over the past year, we've seen significant cost reduct 0:02:00.280 --> 0:02:03.040 whether it be looking to lease real estate that they 0:02:03.080 --> 0:02:08.680 previously rented, significant calling back on their podcast efforts, all 0:02:08.720 --> 0:02:12.240 of that. Plus in July they initiated their first price 0:02:12.280 --> 0:02:15.400 hikes on their standard plan in quite a while, which 0:02:15.440 --> 0:02:18.160 we're starting to see some of the revenue growth from 0:02:18.200 --> 0:02:18.880 that decision. 0:02:20.040 --> 0:02:22.360 Actually here on Bluemog Technology, we've talked a lot about 0:02:22.360 --> 0:02:25.880 what they've been doing in the artificial intelligence contexts and 0:02:25.960 --> 0:02:28.440 in the podcast context And it's interesting, right because they 0:02:28.520 --> 0:02:31.400 kind of did not green light some projects. They made 0:02:31.400 --> 0:02:34.160 cost cuts, headcount reduction, but if you look at the 0:02:34.200 --> 0:02:36.359 earnings that's showing up in a positive way. 0:02:38.480 --> 0:02:38.919 Totally. 0:02:39.160 --> 0:02:43.040 Yeah, they are really mentioning this year as their quote 0:02:43.080 --> 0:02:45.560 unquote efficient year. They're really trying to find all these 0:02:45.560 --> 0:02:48.720 different efficiencies, whether it be through AI, but really truly 0:02:48.800 --> 0:02:51.320 through this cost cutting and trying to make sure they're 0:02:51.360 --> 0:02:53.920 delivering on the businesses that they're pursuing. 0:02:56.160 --> 0:02:58.240 Well, we see total active views as well as some 0:02:58.280 --> 0:03:01.120 twenty six percent more than half billion. It's clear that 0:03:01.160 --> 0:03:05.000 we're seeing some well key year of efficiency starting to 0:03:05.040 --> 0:03:07.320 benefit in terms of growth too. Actually, Carmen, it's great 0:03:07.360 --> 0:03:08.640 to have some time with you, thank you very much, 0:03:08.680 --> 0:03:10.520 and deep breaking down the Spotify numbers and in need 0:03:10.680 --> 0:03:12.959 the rally that we saw in the shares and and look, 0:03:13.000 --> 0:03:14.760 that just sets us up for why there is so 0:03:14.880 --> 0:03:17.520 much optimism around some of these big tech names that 0:03:17.520 --> 0:03:19.799 are set to report after the bell, Microsoft. 0:03:19.320 --> 0:03:21.959 Alphabet of course, parent at Google going to be coming 0:03:22.000 --> 0:03:22.560 a little bit later. 0:03:22.639 --> 0:03:25.080 Let's bring in Ana agran Or a Bloomberg intelligence for 0:03:25.160 --> 0:03:28.760 what we can expect from Microsoft first and are we 0:03:28.880 --> 0:03:31.080 expecting key revenue growth here as well? 0:03:32.280 --> 0:03:34.280 Yeah, you know, the number really to catch for is 0:03:34.320 --> 0:03:37.600 their cloud revenue. I mean it's a slight deceleration from 0:03:37.720 --> 0:03:39.920 last quarter, but guidance for next quarter I think is 0:03:40.160 --> 0:03:43.400 going to be really critical because in the software world, 0:03:43.560 --> 0:03:46.640 Microsoft is the you know, the biggest player in AI 0:03:46.840 --> 0:03:49.600 or anything generated AI right now. So I think that's 0:03:49.600 --> 0:03:51.880 really where our eyes are going to be, our years 0:03:51.880 --> 0:03:53.760 are going to be. You know, when they talk about 0:03:53.760 --> 0:03:55.080 guidance for next quarter. 0:03:55.720 --> 0:03:57.520 You know the battleground that I love to track and 0:03:57.640 --> 0:03:59.640 a rag is the hyper scale cloud, right and I 0:03:59.640 --> 0:04:03.720 think sure it's topline growth forecasts for around twenty seven percent. 0:04:04.080 --> 0:04:08.320 I know we're so excited about artificial intelligence, we genuinely are, 0:04:09.080 --> 0:04:11.400 but ultimately, how much do you focus on the bread 0:04:11.440 --> 0:04:12.280 and butter business? 0:04:13.400 --> 0:04:13.640 See? 0:04:13.720 --> 0:04:15.560 Right now, the bread and burder business is not going 0:04:15.600 --> 0:04:18.280 to accelerate the way the cloud should over the next 0:04:18.279 --> 0:04:20.799 twelve to eighteen months. So that's why we really trying 0:04:20.800 --> 0:04:23.800 trying to figure out if enterprise customers are still in 0:04:23.839 --> 0:04:26.360 the cost cutting mode or have they started to invest 0:04:26.440 --> 0:04:29.160 Because that data point I think is the single most 0:04:29.160 --> 0:04:33.080 important thing for technology companies because unless that happens, you know, 0:04:33.120 --> 0:04:34.880 you're not going to see a recovery in a lot 0:04:34.880 --> 0:04:37.080 of these valuations that have gotten beaten up over the 0:04:37.160 --> 0:04:39.680 last you know, couple of I would say, what. 0:04:39.720 --> 0:04:43.280 Was what about spending at the moment? Anak how much 0:04:43.279 --> 0:04:44.920 are they willing to be investing in their own business? 0:04:44.960 --> 0:04:46.479 Because boy, they've been investing in open Ai. 0:04:47.360 --> 0:04:49.680 Yeah, see the investment part I am. I personally, I 0:04:49.680 --> 0:04:51.960 am not concerned about whether you know, I think it's 0:04:52.000 --> 0:04:55.200 going to remain strong for all cloud providers only because 0:04:55.240 --> 0:04:57.960 the backlog or the long term models are still there. 0:04:58.000 --> 0:05:01.159 People need to invest and you know, move away from 0:05:01.200 --> 0:05:04.560 on premise infrastructure. So I'm not concerned about CAPEX as 0:05:04.600 --> 0:05:07.479 much as some you know, maybe investors are. But you know, 0:05:07.520 --> 0:05:09.880 from my site, I think it's going to continue for 0:05:09.880 --> 0:05:11.160 for many years to come. 0:05:12.320 --> 0:05:14.800 All Right, I was being a bit sassy about cloud 0:05:15.080 --> 0:05:18.479 and artifisial intelligence. Get it sasy software as a anyway, 0:05:18.520 --> 0:05:21.120 Anna rag Rana of Bloomberg Intelligence, thank you very much. 0:05:21.160 --> 0:05:23.919 Let's get at Google's results after Caroline love that I 0:05:23.960 --> 0:05:27.920 know I knew you with all right, hard pivot Google's 0:05:27.920 --> 0:05:30.039 after the bell. Who else is here but Mandy seeper 0:05:30.080 --> 0:05:34.440 Bloomberg Intelligence, Mandy ads it's going to be a story 0:05:34.600 --> 0:05:37.400 of how the ad business is done. We talked just 0:05:37.480 --> 0:05:40.280 there about the sort of bread and butter business for Microsoft. 0:05:40.360 --> 0:05:43.200 Is that what Bloomberg Intelligence looks for in Google's context 0:05:43.200 --> 0:05:43.600 as well? 0:05:43.960 --> 0:05:47.560 Yeah, and to me, you know, the bogie for YouTube 0:05:47.680 --> 0:05:51.000 is quite low. When you think about Search, you know, 0:05:51.080 --> 0:05:54.719 growing at nine percent consensus expectations and YouTube at ten percent. 0:05:54.800 --> 0:05:58.160 You have to wonder why is YouTube not growing faster 0:05:58.279 --> 0:06:01.200 when Meta is expected to grow twenty one percent? And 0:06:01.279 --> 0:06:05.039 the real comparison here is YouTube shorts versus Meta reels. 0:06:05.080 --> 0:06:07.960 Meta reels we know is a ten billion dollars run 0:06:08.040 --> 0:06:11.160 read business. They have three exit over the last twelve months. 0:06:11.440 --> 0:06:13.800 I think investors want to know what's going on with 0:06:13.920 --> 0:06:16.320 YouTube shorts and if it's going to drive that top 0:06:16.360 --> 0:06:18.960 line growth. And on the cloud side, I mean, look, 0:06:19.480 --> 0:06:22.440 I mentioned about large anguid models. The good thing with 0:06:22.520 --> 0:06:25.799 Google Cloud is they don't have a legacy business where 0:06:25.880 --> 0:06:28.920 you know, Google Cloud is going to cannibalize its legacy business. 0:06:28.920 --> 0:06:32.280 It's all incremental revenue from AI and large anglid models. 0:06:32.320 --> 0:06:34.880 And I think if they give any details around the 0:06:34.960 --> 0:06:38.600 licensing of their large anguid models, that would be quite interesting. 0:06:40.040 --> 0:06:40.360 Mandid. 0:06:40.440 --> 0:06:42.520 There was a lot of handwringing though previous couple of 0:06:42.600 --> 0:06:46.160 quarters about well the competitive threat that generator of AI 0:06:46.320 --> 0:06:49.720 certainly maybe coming from being Finally have they managed to 0:06:49.760 --> 0:06:51.840 shake off any anxiety that search is going to be 0:06:51.920 --> 0:06:52.520 upended here? 0:06:53.120 --> 0:06:56.640 I mean, Caroline, this search is one business that has 0:06:56.680 --> 0:07:01.760 still the strongest mode. And granted, you know GPT got traffic, 0:07:01.839 --> 0:07:03.760 you know, the one hundred million users, but when you 0:07:03.800 --> 0:07:06.400 look at the ad revenue, I don't think it's gonna 0:07:06.760 --> 0:07:10.200 make a dent, at least for now and over time. Look, 0:07:10.560 --> 0:07:13.600 Google has the advantage that they have over four billion 0:07:13.640 --> 0:07:16.960 monthly active users with search, and even if you know, 0:07:17.680 --> 0:07:20.640 the volume goes down because they are more large anguage 0:07:20.680 --> 0:07:23.880 models doing searches, they still have the distribution. And so 0:07:24.120 --> 0:07:27.600 to me, Search will continue to grow, you know, high 0:07:27.680 --> 0:07:30.520 single digit and it's all about the other drivers, the 0:07:30.640 --> 0:07:34.400 YouTube and the cloud that's going to accelerate the growth 0:07:34.440 --> 0:07:35.320 through double digits. 0:07:36.320 --> 0:07:38.400 Madip, there's part of this week which is the kind 0:07:38.440 --> 0:07:41.080 of timing and structure of it. So Alphabet kind of 0:07:41.120 --> 0:07:44.080 reports first, and you have meta Snap down the road 0:07:44.160 --> 0:07:47.160 and Alphabet or Google kind of set the tone for 0:07:47.240 --> 0:07:50.480 social media companies that make money from ads. Do you 0:07:50.560 --> 0:07:52.720 expect it to play out that way that way this 0:07:52.800 --> 0:07:53.440 week as well? 0:07:54.080 --> 0:07:54.160 No. 0:07:54.640 --> 0:07:56.800 I think it's going to be tough for the smaller 0:07:56.840 --> 0:08:00.600 players simply because companies are still prudent about their sales 0:08:00.640 --> 0:08:02.800 and marketing spend and they want to focus on the 0:08:02.880 --> 0:08:06.160 highest ROI, and we know the highest ROI is search 0:08:06.360 --> 0:08:09.760 and meta, Instagram and you know the social media, large 0:08:09.760 --> 0:08:13.400 social media properties. I think Snap and Pinterest will have 0:08:13.560 --> 0:08:16.920 easier comms, So that's good, But in terms of acceleration, 0:08:17.120 --> 0:08:19.280 it's too early to say that we are headed for, 0:08:19.440 --> 0:08:21.880 you know, a big rebound in AD spending next year. 0:08:23.800 --> 0:08:26.120 Man name saying a Bloomberg Intelligence, We thank you so 0:08:26.200 --> 0:08:27.960 much as we look ahead to those big earnings and 0:08:28.000 --> 0:08:30.360 a key discussion about AI. We've got more of that 0:08:30.400 --> 0:08:33.440 to come from One Alexis Ohanian, founder of VC firm 0:08:33.559 --> 0:08:34.559 seven seventy six. 0:08:34.640 --> 0:08:36.040 Co founder of course of Reddit. 0:08:36.520 --> 0:08:38.560 He's just sat down with our own at Ludlow. Listen 0:08:38.559 --> 0:09:08.479 to it in a minute. Listen bloom Bag Technology. 0:08:57.080 --> 0:08:58.199 Time now for talking tech. 0:08:58.400 --> 0:09:01.680 First up, in Vidia in processes from arm holdings to 0:09:01.760 --> 0:09:05.040 develop chips for personal computers. Sources say that in Vidia 0:09:05.120 --> 0:09:06.359 plans to make CPUs. 0:09:06.400 --> 0:09:09.079 You know, we always associated with GPUs, but they would. 0:09:08.960 --> 0:09:10.920 Run on Microsoft Windows and go on sales in as 0:09:10.960 --> 0:09:13.920 twenty twenty five. Now AMD is also working with ARM 0:09:14.160 --> 0:09:17.880 based processes. Of course, that's a chip design company to 0:09:18.000 --> 0:09:20.640 move is really all putting pressure on the rival Intel, 0:09:20.679 --> 0:09:23.120 which makes similar technology for PCs. 0:09:23.160 --> 0:09:24.760 Also talking to AI chips. 0:09:24.800 --> 0:09:27.440 The startup Rebellions is hoping to raise abou one hundred 0:09:27.480 --> 0:09:29.839 million dollars in global investors. Based in South Korea, the 0:09:29.880 --> 0:09:32.640 startup is in talks over Series B financing. They may 0:09:32.720 --> 0:09:35.600 value the company at more than half a billion. Rebellions 0:09:35.760 --> 0:09:38.200 is one of several players trying to capitalize off of 0:09:38.240 --> 0:09:42.199 the rapid appeal of artificial intelligence software. Plus a group 0:09:42.240 --> 0:09:46.079 of bipartisan centers will host yet another crop of tech 0:09:46.160 --> 0:09:49.000 leaders and executives discuss well how to regulate this AI. 0:09:49.400 --> 0:09:51.760 It will be the second in a series of forums 0:09:51.800 --> 0:09:55.120 led by Senate Majority Leader Chuck Schumer, and indeed the 0:09:55.200 --> 0:09:58.199 VC billionaire Mark and Risen is expected to attend and 0:09:58.280 --> 0:10:00.160 then the previous forum took place on sept to the 0:10:00.200 --> 0:10:03.960 thirteenth and included pearances from well Elon Musk for example, ed. 0:10:04.760 --> 0:10:07.760 Yeah, let's stick with the artificial intelligence conversation. Earlier today, 0:10:07.760 --> 0:10:10.240 I caught up with Alexis o'hanian, the founder of seven 0:10:10.320 --> 0:10:13.160 seven six of course the co founder of Readit as well. 0:10:13.400 --> 0:10:16.760 We discussed his approach to investing in AI companies and 0:10:16.760 --> 0:10:19.480 how he's thought about the hype around AI this year. 0:10:19.559 --> 0:10:21.920 Have a listen, there's a lot of hype right now. 0:10:22.200 --> 0:10:24.120 I've been investing in the space for over a decade, 0:10:24.160 --> 0:10:26.520 back when it was just narrow AI companies, you know, 0:10:26.559 --> 0:10:30.120 seating companies like Athellis and Cruise. So this is really 0:10:30.160 --> 0:10:34.280 now a big breakthrough. Generalized AI is a giant buzzword, 0:10:34.760 --> 0:10:38.120 but there is some real special truth there, and we're 0:10:38.120 --> 0:10:40.840 looking for companies that are using this technology to enhance 0:10:40.840 --> 0:10:43.080 the user experience and outside of ways. It really is 0:10:43.480 --> 0:10:46.240 as simple as that, and we're seeing across the portfolio 0:10:46.320 --> 0:10:51.040 from AI produced dubbing like Deep Tune to sports media 0:10:51.080 --> 0:10:53.680 Rita's been companies like score Plates. It's not about just 0:10:53.760 --> 0:10:56.520 the buzzword, it's about how are you improving users' lives 0:10:56.640 --> 0:10:58.160 using this technology effortlessly. 0:10:58.840 --> 0:11:00.720 When I was looking through the port you know, the 0:11:00.760 --> 0:11:03.000 examples of score play and deep tune. You kind of 0:11:03.000 --> 0:11:06.400 split it maybe into a tool, an AI tool which 0:11:06.440 --> 0:11:10.520 we call generative AI, and then an existing technology platform 0:11:11.080 --> 0:11:15.360 which is kind of improved or added to using AI. 0:11:16.080 --> 0:11:20.400 You know, explain to us why score play and deep 0:11:20.480 --> 0:11:23.960 tune fit those two kind of categories and why you'd invested. 0:11:23.559 --> 0:11:24.439 In them for sure. 0:11:24.679 --> 0:11:27.000 Well, you know, as the owner of two professional sports teams, 0:11:27.080 --> 0:11:30.480 I know how important media management is and this process 0:11:30.480 --> 0:11:33.560 of actually capturing the clips, the photos or everything happening 0:11:33.640 --> 0:11:36.440 on the pitch or in the stands, and then you know, 0:11:36.480 --> 0:11:39.080 getting those out to the athletes, to social media, to 0:11:39.120 --> 0:11:42.560 your media partners. That is a ton of work, and 0:11:43.000 --> 0:11:46.520 software should automatically be able to seamlessly make all that 0:11:46.559 --> 0:11:49.079 happen way more effectively. But now you layer in AI 0:11:49.200 --> 0:11:51.760 and you have something that now does it ten times faster. 0:11:51.760 --> 0:11:55.839 Whether it's identifying you know, this is Sidney LaRue, this 0:11:55.880 --> 0:11:58.920 is her kicking a goal, this is the door dash 0:11:59.000 --> 0:12:01.880 logo visible, and so all of that stuff can now 0:12:01.960 --> 0:12:04.960 be automated away and so smaller teams can get far 0:12:05.000 --> 0:12:09.720 more done. And it's not reinventing a whole new technology. 0:12:09.760 --> 0:12:13.280 It's leveling up existing software that already has deep relationships 0:12:13.320 --> 0:12:15.240 with customers. And so there are going to be these 0:12:15.280 --> 0:12:17.840 types of companies that have strong moats and lock in 0:12:18.040 --> 0:12:20.400 that are going to win. And you know, there's going 0:12:20.440 --> 0:12:21.319 to be big winners in. 0:12:21.240 --> 0:12:22.000 The space as well. 0:12:22.080 --> 0:12:24.719 Chat GBT is probably the most famous one, which I'm 0:12:24.760 --> 0:12:27.400 not an investor in, though I really should have bugged 0:12:27.440 --> 0:12:30.160 Sam about that a lot earlier. You know, I use 0:12:30.200 --> 0:12:32.600 it to tell bedtime stories with my daughter, and so 0:12:32.640 --> 0:12:37.240 you're seeing this very generalized, you know, approach from NLM 0:12:37.320 --> 0:12:38.679 like Open Eye that's going to solve a lot of 0:12:38.679 --> 0:12:40.400 problems for a lot of people, and then much more 0:12:40.400 --> 0:12:43.600 specific approaches that are solving at least right now, strong 0:12:43.679 --> 0:12:46.360 business needs and you know, offering it like any other 0:12:46.480 --> 0:12:47.960 subscription as a service business. 0:12:48.760 --> 0:12:51.640 Just real quick if you do bug Sam Altman. I 0:12:51.720 --> 0:12:55.880 reported last week that there's a tender off underway right 0:12:55.920 --> 0:12:58.480 and there's pretty big, big blocks of shares on the 0:12:58.520 --> 0:13:03.320 secondaries market. Yes that you know value open AI eighty 0:13:03.400 --> 0:13:07.000 six ninety billion, more than one hundred billion. Some of 0:13:07.000 --> 0:13:09.680 the prospectus that I've seen, is that a way for 0:13:09.720 --> 0:13:11.120 you to get in or do you just you just 0:13:11.160 --> 0:13:14.319 stay away? From open Ai given its late growth stage. 0:13:14.400 --> 0:13:16.520 I am such an early investor. I want to be 0:13:16.600 --> 0:13:18.920 there at the point of inception all the way to 0:13:18.960 --> 0:13:21.040 maybe the Series A. That's that's when we like leading 0:13:21.080 --> 0:13:23.600 and writing that first check. At this stage, I still 0:13:23.640 --> 0:13:25.760 think there is value, but it's not you know, it's 0:13:25.760 --> 0:13:29.920 above my pay grade. I enjoy I enjoy being super 0:13:29.960 --> 0:13:34.320 early and right, but you know, it's still it's going 0:13:34.400 --> 0:13:36.920 to continue to surprise us. I think what these technologies 0:13:36.920 --> 0:13:38.520 are able to do, and yes, there is a ton 0:13:38.559 --> 0:13:41.040 of hype, but I do think the sky is the limit. 0:13:41.080 --> 0:13:43.440 And I've known Sam since he did y Combinator together 0:13:43.559 --> 0:13:46.560 back in two thousand and five, and one thing he 0:13:46.640 --> 0:13:50.319 has never lacked is ambition. And so if there's anyone 0:13:50.360 --> 0:13:52.719 who can turn this into you know what all the 0:13:53.040 --> 0:13:56.880 sort of hype is about, it would be him. 0:13:57.000 --> 0:14:00.319 So a big emphasis there on artificial intelligence. Alexis Hani 0:14:00.400 --> 0:14:03.200 and seven seven six found a co founder of Reddit. 0:14:11.120 --> 0:14:13.560 I have been in crypto for over a decade. I 0:14:13.600 --> 0:14:16.120 have invested through every single winter, and none of them 0:14:16.160 --> 0:14:19.720 phase me. They're all healthy because they sort of clear 0:14:19.800 --> 0:14:23.640 out the tourists and the grifters in every sector, in 0:14:23.640 --> 0:14:28.040 every industry, and I think here we're seeing a response 0:14:28.360 --> 0:14:32.000 to my guests, a sort of broader macro and global uncertainty. 0:14:32.600 --> 0:14:35.960 And what's wild is I know, for some viewers it 0:14:36.000 --> 0:14:38.920 may seem a little surprising that people would find safety 0:14:38.960 --> 0:14:42.320 in a volatile cryptocurrency like bitcoin, but the fact that 0:14:42.360 --> 0:14:46.840 it is truly decentralized and the fact that it is 0:14:46.880 --> 0:14:50.240 backed by conviction, you know, to me, bitcoin has never 0:14:50.280 --> 0:14:53.120 felt really all that different from gold. 0:14:55.280 --> 0:14:57.360 Ah the age old digital gold. 0:14:57.360 --> 0:15:00.240 Alexasirhanian there are seven seven six, just talking a little 0:15:00.280 --> 0:15:02.720 bit more about his thesis around Web three, around crypto, 0:15:02.760 --> 0:15:05.280 around bitcoin, and of course it has just hit thirty 0:15:05.280 --> 0:15:08.440 five thousand dollars for the first time this year. Of course, 0:15:08.440 --> 0:15:11.320 it's all kind of based on fresh demands, some of 0:15:11.360 --> 0:15:14.880 them maybe for resilience in conflict, others well because we 0:15:14.880 --> 0:15:16.920 think an ETF is going to be signed off sometimes 0:15:16.920 --> 0:15:19.040 soon for spot bitcoin. Let's talk about it all with 0:15:19.080 --> 0:15:21.440 Amy James, co executive director of Web three Working Group. 0:15:21.480 --> 0:15:22.960 You join us, and of course a lot of our 0:15:23.000 --> 0:15:25.400 advocacy work is about making sure everyone has got the 0:15:25.440 --> 0:15:27.640 access the information to be able to be playing a 0:15:27.680 --> 0:15:33.720 part in Web three. The ATF exposure, the ability to invest. 0:15:34.360 --> 0:15:37.160 Is that really what's behind this thirty five thousand dollar pop. 0:15:38.720 --> 0:15:41.480 It could be absolutely thank you so much for having 0:15:41.480 --> 0:15:42.960 me on the show, just wanting to say that before 0:15:42.960 --> 0:15:46.800 you get started. And it absolutely could be the speculation 0:15:46.920 --> 0:15:52.360 that that's happening. And it also could be the economic 0:15:52.440 --> 0:15:55.680 uncertainty as the previous guest was talking about, that is 0:15:55.760 --> 0:15:59.200 driving people into bitcoin because it is potentially a more 0:15:59.280 --> 0:16:04.160 stable asset over time. I personally think that the bitcoin 0:16:04.240 --> 0:16:08.080 price action is the least interesting aspect of bitcoin, and 0:16:08.120 --> 0:16:11.440 it's the technology underneath it that is far more important, 0:16:11.840 --> 0:16:14.840 more exciting, and will have a much more profound impact 0:16:14.840 --> 0:16:15.920 on our daily lives. 0:16:16.360 --> 0:16:18.400 Yeah, Amy, this is why I'm so excited to have 0:16:18.440 --> 0:16:20.520 you on the program. You know, you can see it 0:16:20.560 --> 0:16:23.960 as bitcoin as a currency and the underlying blockchain technology 0:16:24.000 --> 0:16:27.720 what makes it secure? If bitcoin has this kind of 0:16:27.840 --> 0:16:31.840 upward trajectory thirty five thousand dollars now, Sunny Singh was 0:16:31.840 --> 0:16:35.160 on the show last week talking about above one hundred 0:16:35.240 --> 0:16:38.440 thousand at some point next year. Does that help the 0:16:38.520 --> 0:16:43.680 technology become accepted and utilized in societies around the world. 0:16:44.880 --> 0:16:49.360 That's absolutely right. Every time we have a ball run, 0:16:49.600 --> 0:16:52.680 more and more people find out about the technology. It's 0:16:52.680 --> 0:16:55.200 the price action that is, you know, the kind of 0:16:55.280 --> 0:16:57.080 headline that gets people drawn in. 0:16:57.520 --> 0:17:00.000 But once they once they come. 0:16:59.880 --> 0:17:02.920 Into the space, they learn about the technology that really 0:17:03.000 --> 0:17:08.400 has the potential to reshape the foundation of the Internet 0:17:08.760 --> 0:17:11.840 and return it to its original vision of being a 0:17:11.880 --> 0:17:15.800 free and fair marketplace for ideas. And so you know, 0:17:15.880 --> 0:17:19.000 as they say, bear markets are for builders, and we 0:17:19.080 --> 0:17:22.480 have been in a bear market since the Terra Luna 0:17:22.560 --> 0:17:27.200 collapse in May of last year, and during that time 0:17:27.320 --> 0:17:31.600 a tremendous amount of building has happened. And now I 0:17:31.640 --> 0:17:35.320 would say that the deep PIN sector of the cryptospace, 0:17:35.320 --> 0:17:40.280 which stands for decentralized physical infrastructure networks, is poised to 0:17:40.320 --> 0:17:43.400 be sort of the breakout hit of this next bull run, 0:17:43.800 --> 0:17:47.720 similar to NFTs and stable coins in previous runs. 0:17:48.960 --> 0:17:50.800 Oh boy, another acronym. 0:17:51.320 --> 0:17:54.560 So talk to us about deep in and what decentralized 0:17:54.560 --> 0:17:58.600 physical infrastructure It actually feels a lot more real, tangible. 0:17:59.040 --> 0:18:00.920 What exactly is it that you're building me? 0:18:02.359 --> 0:18:06.040 That's right, So decentralized physical infrastructure networks, I like to 0:18:06.080 --> 0:18:09.040 call them the plumbing of the web. So just as 0:18:09.080 --> 0:18:12.440 we rely on water flowing from our tap, we rely 0:18:12.560 --> 0:18:15.800 on these networks for the things that we do every day, 0:18:15.840 --> 0:18:18.240 the things that allow us to be on this video 0:18:18.359 --> 0:18:21.879 call together for you to broadcast your show to the world, 0:18:21.960 --> 0:18:26.720 things like video trans coding with networks like live peer, 0:18:26.920 --> 0:18:30.960 things like file storage networks. Those would be protocols like 0:18:31.440 --> 0:18:35.760 r weave and IPFS. File coin is what most people 0:18:35.760 --> 0:18:39.239 would know that as. And then also for things like 0:18:40.240 --> 0:18:43.679 GPU rentals, which I'm sure you know. GPUs have been 0:18:43.720 --> 0:18:48.080 a really constrained product because of supply issues, and so 0:18:48.480 --> 0:18:50.840 builders have had a hard time getting their hands on 0:18:50.880 --> 0:18:53.760 them to train their AI models, and marketplaces like a 0:18:53.800 --> 0:18:57.960 cash network are making those available on a rental sort 0:18:58.000 --> 0:18:59.920 of basis so that they can use them when they 0:19:00.080 --> 0:19:02.879 need them without having to outlay a tremendous amount of 0:19:02.880 --> 0:19:06.480 cash to purchase them and also really having to help 0:19:06.520 --> 0:19:10.760 overcome those supply issues. So these networks are going to 0:19:11.440 --> 0:19:16.280 return the Web to its decentralized shape. What we've seen 0:19:16.440 --> 0:19:18.840 over the eras of Web one, Web two, and Web 0:19:18.880 --> 0:19:23.240 three is a change from a decentralized structure in the 0:19:23.320 --> 0:19:25.480 very beginning of the web and Web one, when everybody 0:19:25.520 --> 0:19:27.840 ran it on their own computers, and then it became 0:19:27.960 --> 0:19:30.680 centralized as We've entered this big heech. 0:19:30.520 --> 0:19:34.919 Era and web three really really quick, just before we 0:19:35.000 --> 0:19:37.119 run out of time here very quickly, just on what 0:19:37.160 --> 0:19:40.199 you said, is the United States a good place for 0:19:40.280 --> 0:19:44.680 this dream to become realized? Is a regulatory jurisdiction very quick. 0:19:46.119 --> 0:19:48.359 So our hope is that it will be right now, 0:19:48.400 --> 0:19:50.920 it is very precarious, and I think that the industry 0:19:50.960 --> 0:19:54.359 feels very nervous about what will happen. We have some 0:19:54.480 --> 0:19:58.520 great champions in the legislatorture who are helping to move 0:19:58.520 --> 0:20:00.560 that forward, and we wish them the best and hope 0:20:00.560 --> 0:20:03.240 that they are successful, because if not, we do face 0:20:03.280 --> 0:20:06.440 the really serious danger of losing the tech industry here 0:20:06.440 --> 0:20:07.000 in the US. 0:20:07.880 --> 0:20:10.120 All right, Amy James at the WED three working group 0:20:10.119 --> 0:20:12.160 here on Bloomberg Technology, Thank you so much. 0:20:20.880 --> 0:20:23.880 Welcome back to Bloomberg Technology. I'm Caroline Hyde in London. 0:20:24.200 --> 0:20:26.080 And I'm Ed Lovela in San Francisco. I think you'd 0:20:26.119 --> 0:20:29.680 agree that this sort of candor third quarter earning season 0:20:30.280 --> 0:20:32.480 Artificial intelligence is what we're going to look for in 0:20:32.560 --> 0:20:34.520 terms of how's all of the news, all of the 0:20:34.640 --> 0:20:36.880 R and D actually showing up in the top line 0:20:36.880 --> 0:20:39.720 of these businesses invest in AI what do you have 0:20:39.760 --> 0:20:41.000 to show for it AI everything? 0:20:42.320 --> 0:20:44.080