WEBVTT - SpaceX's Tender Offer and AI In Hollywood 0:00:02.440 --> 0:00:09.400 Bloomberg Audio Studios, podcasts, radio news from Mahard. 0:00:09.560 --> 0:00:14.000 We're Innovation, Money and power. Collie in Silicon Vallet NBN. 0:00:14.320 --> 0:00:18.360 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:32.560 --> 0:00:35.520 I met Ludlow in San Francisco. Caroline hides off today. 0:00:35.560 --> 0:00:39.280 This is Bloomberg Technology coming up SpaceX weighing a tender 0:00:39.280 --> 0:00:43.440 offer that would value the company at two hundred billion dollars. 0:00:43.479 --> 0:00:47.199 Details ahead, plus a bloomberg scoop, Alphabet and Meta in 0:00:47.280 --> 0:00:51.479 talks with Hollywood studios to use their content for AI 0:00:51.640 --> 0:00:55.560 video generation and Canva takes on Adobe users with work 0:00:55.600 --> 0:00:58.680 tools to speed up it's growth. Let's get a quick 0:00:58.720 --> 0:01:00.600 check in on the markets. Lots of green on the screen. 0:01:00.640 --> 0:01:03.880 Happy Friday, What a nice way to end the week. 0:01:03.920 --> 0:01:07.280 You're looking at the Nasdaq one hundred Tech Heavy Index, 0:01:07.400 --> 0:01:12.959 the SOX or Philadelphia Semiconductor Index, both rebounding moving higher 0:01:13.360 --> 0:01:17.759 after UMich inflation expectations. Data made us feel a bit 0:01:17.800 --> 0:01:21.120 better that the world would be comfortable with rate cuts. 0:01:21.400 --> 0:01:25.640 Both of those indices have the ability to close at 0:01:25.680 --> 0:01:28.560 fresh record hides yields going nowhere, We're going to talk 0:01:28.600 --> 0:01:32.920 about Ether throughout the program. It's down in the session 0:01:33.080 --> 0:01:36.520 one percentage point thirty seven hundred and twelve dollars, but 0:01:36.640 --> 0:01:38.640 it's on track to have its best week in a year. 0:01:38.760 --> 0:01:43.320 Lots to discuss with the potential of spot ether ets 0:01:43.360 --> 0:01:46.760 with Bloomberg's Shnali Bassek. Let's go to the private markets. 0:01:46.920 --> 0:01:51.600 Bloomberg is reporting that SpaceX is considering a tender offer 0:01:51.840 --> 0:01:55.160 that would value the company at two hundred billion dollars. 0:01:55.400 --> 0:01:59.680 A tender offer is where the company allows staff, employees 0:01:59.800 --> 0:02:03.160 and some early investors to sell the shares that they 0:02:03.160 --> 0:02:07.880 already own existing shares to outside investors. The price is 0:02:08.000 --> 0:02:11.760 set by Elon Musk and the CFO, and it's agreed 0:02:11.880 --> 0:02:14.880 with basically a lead outside investor. And what we're hearing, 0:02:15.080 --> 0:02:18.280 according to one source, is that that price could be 0:02:18.360 --> 0:02:20.079 one hundred and eight to one hundred and ten dollars. 0:02:20.080 --> 0:02:21.760 So you do the math and that would be a 0:02:21.800 --> 0:02:24.680 jump in valuation to two hundred billion dollars. That's a 0:02:24.680 --> 0:02:28.760 pretty big number. Let's talk about it with Bloomberg's Max Chafkin, 0:02:28.880 --> 0:02:33.520 member of the Elon Inc. Podcast Team, storied columnist at 0:02:33.520 --> 0:02:37.280 Bloomberg BusinessWeek covering technology, and someone that's covered Elon Musk 0:02:37.280 --> 0:02:40.760 companies closely. The main point for me, irrespective of the 0:02:40.800 --> 0:02:44.960 mechanics is simple, SpaceX evaluation keeps going up. 0:02:46.000 --> 0:02:46.800 Yeah. Absolutely. 0:02:46.960 --> 0:02:49.240 I think the last number we had heard, the last 0:02:49.280 --> 0:02:52.080 private valuation we'd heard, was one hundred and eighty billion, 0:02:52.200 --> 0:02:54.840 So you know, this is a pretty sizable jump. 0:02:55.560 --> 0:02:56.679 It's also a reflection. 0:02:57.000 --> 0:03:01.960 Look, this is a fairly mature company it and it's private. 0:03:02.080 --> 0:03:04.320 So if you need to be able to find a 0:03:04.320 --> 0:03:06.760 way Elon Musk needs to find a way to give 0:03:06.919 --> 0:03:10.040 employees and some of these venture capitalists who may you know, 0:03:10.120 --> 0:03:12.000 may need to get out or want to get out, 0:03:12.600 --> 0:03:14.959 a method to do that. And of course, as you said, ed, 0:03:15.040 --> 0:03:19.200 because SpaceX has so much dominance in the large market, 0:03:19.400 --> 0:03:22.960 it's not hard to find other investors willing to take 0:03:23.000 --> 0:03:24.880 over these shares and take them over, you know, at 0:03:24.880 --> 0:03:26.840 a premium. 0:03:26.680 --> 0:03:29.919 You've documented throughout your career. Like the early days of SpaceX, 0:03:29.960 --> 0:03:35.400 things were very hard financially precarious. But now SpaceX basically 0:03:35.440 --> 0:03:41.680 dominates the industry for sending payload human and inorganic from 0:03:41.720 --> 0:03:45.960 Earth into orbit. Just summarize where they are in this industry. 0:03:47.000 --> 0:03:51.560 Yeah, so thanks to this long collaborative, a long collaboration 0:03:51.680 --> 0:03:54.160 with NASA, and I think NASA deserves a lot of 0:03:54.200 --> 0:03:59.279 credit here for you know, essentially backing SpaceX with early contracts. 0:03:59.520 --> 0:04:00.880 But they are are now as. 0:04:00.720 --> 0:04:03.960 You said, you know, the way that the US sends 0:04:04.600 --> 0:04:07.760 people and supplies up to the International Space Station, that's 0:04:07.800 --> 0:04:11.240 a very lucrative business. You know, there is a possibility 0:04:11.320 --> 0:04:13.640 the US would like to get another source. You know, 0:04:13.720 --> 0:04:17.200 Boeing is working on its own, its own systems there. 0:04:17.600 --> 0:04:19.920 So it's not like there's no competition. But when you 0:04:19.960 --> 0:04:22.680 take a few steps back and look at like just 0:04:22.760 --> 0:04:28.160 the volume of launches worldwide, SpaceX is dominating and it's 0:04:28.240 --> 0:04:31.960 it's it's sending up a very large percentage. And with 0:04:32.040 --> 0:04:35.640 the expansion of Starlink, you know, which is Elon Musk 0:04:35.720 --> 0:04:39.960 sort of internet satellite internet platform, that's created this additional 0:04:40.760 --> 0:04:44.440 demand for launches, this additional traffic that is coming, you know, 0:04:44.600 --> 0:04:48.240 on top of these very substantial government contracts. 0:04:48.680 --> 0:04:51.359 Max, I just want to share Elon Musk's post on 0:04:51.560 --> 0:04:54.000 X again with our audience. So we publish the story, 0:04:54.640 --> 0:04:56.640 and as so often is the case, a user on 0:04:56.880 --> 0:04:59.360 X took a screen grab of the article and this 0:04:59.480 --> 0:05:02.680 was must spon. SpaceX has no need for additional capital 0:05:02.720 --> 0:05:06.080 and will actually be buying backshares. We do liquidity rounds 0:05:06.080 --> 0:05:10.600 for employees and investors every six months approximately. My take 0:05:10.640 --> 0:05:13.599 on that is that he's basically confirming the Bloomberg reporting. 0:05:13.960 --> 0:05:16.120 And the main point that we make in the story 0:05:16.440 --> 0:05:18.520 is that in a tender they don't issue any new 0:05:18.600 --> 0:05:21.839 shares anyway, and they don't gain any proceeds from the sale. 0:05:21.920 --> 0:05:25.320 It's a transaction between the employees and the would be buyers. 0:05:26.080 --> 0:05:27.400 Yeah, I read it the same way. 0:05:27.880 --> 0:05:29.640 You know, every now and then you have a tender 0:05:29.680 --> 0:05:33.120 offer that could come with some additional funding, and I 0:05:33.160 --> 0:05:35.920 think part of the reason he probably chimed in is 0:05:36.000 --> 0:05:39.400 just to clarify that, no, this is not an effort 0:05:39.400 --> 0:05:44.200 to raise capital. This is just an effort to allow employees, 0:05:44.480 --> 0:05:48.080 early investors whoever, to exit their shares. Now, you do 0:05:48.200 --> 0:05:51.760 wonder is Elon Musk going to be among the shareholders. 0:05:51.760 --> 0:05:54.799 Obviously he's the world's richest man, but he still owns 0:05:54.800 --> 0:05:58.440 a huge amount of SpaceX, and you know, it would 0:05:58.480 --> 0:06:00.920 be interesting to see if he were were somebody who 0:06:01.400 --> 0:06:03.760 would unload shares, although you know, I don't think we 0:06:03.800 --> 0:06:05.680 have any indication that that is going to happen, But 0:06:05.680 --> 0:06:07.520 that's something that I'm going to keep my eyes on 0:06:08.160 --> 0:06:09.279 as this story develops. 0:06:10.040 --> 0:06:12.000 I did write to him and I did ask him, 0:06:12.040 --> 0:06:15.120 so Elon Musk, if you're watching, please reply to my 0:06:15.240 --> 0:06:20.320 email max Starship Attempt number four, Test number four as 0:06:20.360 --> 0:06:23.920 early as June fifth. You know, that could move, but 0:06:25.080 --> 0:06:28.599 just face on how successful Starship Test three was, you know, 0:06:28.680 --> 0:06:30.640 set the scene for us of what a Starship Test 0:06:30.760 --> 0:06:32.200 four might look like in your mind. 0:06:32.800 --> 0:06:34.920 So I think it's important to keep in mind they 0:06:34.960 --> 0:06:38.039 haven't made it into an orbit yet, but they have 0:06:38.160 --> 0:06:42.160 made it into space, and I think it's just important 0:06:42.200 --> 0:06:43.680 to keep in mind that this is going to be 0:06:43.800 --> 0:06:48.760 a long process, right, Like, this is a totally new spacecraft. 0:06:49.360 --> 0:06:53.600 We've seen the previous launches and you know, in sort 0:06:53.640 --> 0:06:56.960 of fireballs, but ending in a fireball is not necessarily 0:06:57.240 --> 0:06:59.920 a failure for this aircraft. 0:07:00.080 --> 0:07:02.560 Right, they are still in development mode. 0:07:02.760 --> 0:07:04.680 This is not you know, this is a situation where 0:07:04.720 --> 0:07:07.960 things are going to progress slowly because ultimately here the 0:07:08.040 --> 0:07:12.560 goal is to have a functional, reusable, and much much 0:07:12.680 --> 0:07:15.520 larger spacecraft than has ever been you know that has 0:07:15.560 --> 0:07:18.480 ever flown that you know, Elon Musk believes could be 0:07:18.560 --> 0:07:22.120 useful to you know, send missions to Mars. There's so 0:07:22.240 --> 0:07:25.000 many what IF's there, you know, I mean, despite the 0:07:25.000 --> 0:07:28.160 fact that this is using technology that that you know, 0:07:28.240 --> 0:07:30.680 SpaceX has been developing over a long period of time, 0:07:31.040 --> 0:07:34.200 the size is different, the scale is different, and then 0:07:34.240 --> 0:07:36.880 there are questions about what exactly do you do with 0:07:36.960 --> 0:07:39.520 this in the interim, because you know, I don't think 0:07:39.520 --> 0:07:41.320 we're gonna have a Mars colony, you know, in the 0:07:41.320 --> 0:07:43.800 next couple of years, and and Elon Musk is gonna 0:07:43.800 --> 0:07:47.480 want to find something to send into space to fill 0:07:47.560 --> 0:07:48.560 up these giant rockets. 0:07:49.360 --> 0:07:53.160 Starship test for as soon as June fifth, but if 0:07:53.160 --> 0:07:55.400 it happens on that date, we'll see Bloomers match traffickin 0:07:55.600 --> 0:07:57.480 What a way to end the week, Thank you very much. 0:07:57.760 --> 0:08:00.520 Sticking in the world of Elon Musk because artificially intelligence 0:08:00.560 --> 0:08:04.640 startup Xai is slated to complete a funding round in 0:08:04.760 --> 0:08:07.640 June that could value the company at more than twenty 0:08:07.640 --> 0:08:11.400 four billion dollars, which includes its latest influxu of cash. 0:08:11.440 --> 0:08:13.720 That's according to a source. The source also said the 0:08:13.760 --> 0:08:16.280 final close still hasn't happened in the deal, but the 0:08:16.280 --> 0:08:19.280 company is getting closer to its six point five billion 0:08:19.320 --> 0:08:22.320 dollar target in terms of the rays over the next 0:08:22.320 --> 0:08:35.160 few weeks. Canva just unveiled its biggest redesign in more 0:08:35.240 --> 0:08:37.840 than a decade, and it's Canva creat event in Los 0:08:37.880 --> 0:08:41.800 Angeles yesterday, with new workplace products like Canva Enterprise, a 0:08:41.840 --> 0:08:46.600 new subscription to meet growing demand and adoption by larger organizations. 0:08:46.640 --> 0:08:48.000 There's a lot more in there as well, and let's 0:08:48.000 --> 0:08:50.440 bring in Cameron Adams, who's the chief product officer, one 0:08:50.480 --> 0:08:53.600 of the co founders of Canber. You know, I've used 0:08:53.679 --> 0:08:56.560 Camber on and off as an individual creator over the 0:08:56.640 --> 0:09:01.000 last decade basically, but it's a significant redesign and I 0:09:01.040 --> 0:09:03.439 wanted to get right to what prompted that why you 0:09:03.520 --> 0:09:06.319 felt this was like time for Canva two point zero. 0:09:07.600 --> 0:09:09.880 Yeah, it's great to hear that you've used it ed 0:09:10.880 --> 0:09:13.319 Over the last few years, we've seen more and more 0:09:13.360 --> 0:09:16.280 people bringing Camera into the workplace and using it with 0:09:16.320 --> 0:09:19.920 their teams and across their enterprise, and we thought now 0:09:20.040 --> 0:09:22.240 is the perfect time to give Camera a bit of 0:09:22.240 --> 0:09:25.760 a glow up to make sure that the interface and 0:09:25.800 --> 0:09:28.400 the user experience really matched what people were doing in 0:09:28.480 --> 0:09:32.880 the workplace, and also coincided with the launch of our new. 0:09:32.800 --> 0:09:36.280 Canber Enterprise package. Which is really. 0:09:36.000 --> 0:09:40.840 A product offering design for large organizations where thousands, tens 0:09:40.840 --> 0:09:44.160 of thousands of people are using Canber and giving people 0:09:44.200 --> 0:09:48.600 like CIOs and it teams the tools that they need to. 0:09:48.679 --> 0:09:50.959 Roll out Camber at scale for. 0:09:51.160 --> 0:09:54.880 Multiple teams within their organization, for the thousands of folks 0:09:54.960 --> 0:09:56.640 that are using it and be able to give each 0:09:56.679 --> 0:09:58.199 of them a customized experience. 0:09:59.000 --> 0:10:01.360 You know, it's one of these situations where like Canva 0:10:01.480 --> 0:10:05.120 is like this global startup and you blink and it's 0:10:05.160 --> 0:10:08.160 grown so quickly, one hundred and eighty five million monthly users. 0:10:08.440 --> 0:10:11.240 You're hitting like more than two billion dollars in revenue. 0:10:11.679 --> 0:10:13.880 But I want to go a layer deeper than that. 0:10:13.960 --> 0:10:15.840 You know, you talk about enterprise. Do you have a 0:10:15.920 --> 0:10:19.960 clear split in what is basically an individual consumer user 0:10:20.000 --> 0:10:21.480 base and enterprise base. 0:10:23.000 --> 0:10:25.960 Part of Canva's growth over the last ten years has 0:10:26.160 --> 0:10:31.160 been a passionate community and they take Canva themselves. From 0:10:31.400 --> 0:10:33.840 using it in their personal lives or their side hustle, 0:10:34.520 --> 0:10:37.800 they often take it into their workplace and they'll be 0:10:37.840 --> 0:10:40.440 one person using it and then spread it through their team. 0:10:40.640 --> 0:10:43.319 Maybe it's their marketing team, maybe it's their sales team, 0:10:43.840 --> 0:10:46.400 and it just grows and grows and grows, and we 0:10:46.480 --> 0:10:50.120 see this rampant growth in so many companies now where 0:10:50.440 --> 0:10:53.120 we've got Canva used in ninety percent of the Fortune 0:10:53.160 --> 0:10:56.440 five hundred and in a lot of those places, literally 0:10:56.480 --> 0:10:59.840 thousands of people using Canva and camera enterprise is away 0:10:59.880 --> 0:11:03.319 for that company to then consolidate that usage, make sure 0:11:03.440 --> 0:11:05.920 that all of their IP is on the same platform, 0:11:06.320 --> 0:11:10.160 that they're all paying through the right channels, and that 0:11:10.200 --> 0:11:12.840 those teams can work and collaborate with one another. 0:11:14.400 --> 0:11:16.679 Okay, I go on the Canva website. I'm just going 0:11:16.760 --> 0:11:19.640 to just lay this out from a very simple perspective, 0:11:19.760 --> 0:11:21.360 and I look at all the things that are offering 0:11:21.360 --> 0:11:27.239 from docs, social media and video creation projects. You guys 0:11:28.040 --> 0:11:32.560 are gunning for and taking on Adobe, right, that is 0:11:32.600 --> 0:11:33.560 what you're trying to do here. 0:11:35.000 --> 0:11:38.680 Ever, since day one, we've identified this whitespace in the 0:11:38.720 --> 0:11:42.000 market that no one was really looking at. Between productivity 0:11:42.080 --> 0:11:46.400 and creativity. There's an intersection there that is really interesting 0:11:46.720 --> 0:11:49.920 and it's obviously resonated with people. We've got one hundred 0:11:49.920 --> 0:11:52.600 and eighty five million people that use the platform now 0:11:52.679 --> 0:11:54.680 and we continue to grow like crazy. 0:11:55.400 --> 0:11:56.800 So we've really proved. 0:11:56.480 --> 0:12:00.400 Out this next generation of visual content creation that needs 0:12:00.400 --> 0:12:03.640 to happen for all types of folks, from marketing to sales, 0:12:03.640 --> 0:12:08.920 to HR to creatives. And we're continuing to see amazing growth, 0:12:09.400 --> 0:12:12.120 so people are obviously resonating with what we're putting out. 0:12:13.240 --> 0:12:15.760 Cameron, you are the chief product officer, and we've talked 0:12:15.760 --> 0:12:17.680 about the redesign, we've talked about the offering, but we're 0:12:17.679 --> 0:12:20.120 also one of the co founders, so let's talk about 0:12:20.120 --> 0:12:24.600 what happens next for Canva. You are growing, You're a 0:12:24.679 --> 0:12:28.559 richly valued startup. Do you go in the IPO direction 0:12:29.240 --> 0:12:33.000 or Figma was not able to merge with Adobe. Do 0:12:33.080 --> 0:12:34.960 you look at the M and A direction? Where's your 0:12:34.960 --> 0:12:35.400 head at? 0:12:36.840 --> 0:12:38.680 We don't have much to share yet on IPO. We 0:12:38.720 --> 0:12:42.240 actually recently did secondary for our staff and it was 0:12:42.360 --> 0:12:46.679 one of the most subscribed secondaries in history, which was 0:12:46.720 --> 0:12:49.200 a real vote of confidence from existing investors who wanted 0:12:49.200 --> 0:12:52.720 to reinvest, and we also brought on a whole suite. 0:12:52.320 --> 0:12:55.079 Of high profile new investors. 0:12:55.520 --> 0:12:57.120 So we're happy with where we're at at the moment 0:12:57.640 --> 0:13:01.000 and definitely do not want to acquired by anyone. 0:13:01.840 --> 0:13:04.440 All right, Cameron Adams, you product officer and one of 0:13:04.440 --> 0:13:07.520 the co founders of canber really appreciate the update. It's 0:13:07.559 --> 0:13:11.719 been interesting to track your company's growth. Come back and 0:13:11.760 --> 0:13:15.240 see us soon. I just want to correct something that 0:13:15.440 --> 0:13:17.520 was part of a discussion we had earlier with Max Chafkin. 0:13:17.800 --> 0:13:21.640 We were talking about Starship and Starship four. The test 0:13:21.800 --> 0:13:25.400 is going to happen as soon as June fifth, according 0:13:25.440 --> 0:13:28.800 to SpaceX. But something Max said. He said that Starship 0:13:28.920 --> 0:13:34.040 three had not reached orbital velocity. Actually, in that test 0:13:34.040 --> 0:13:40.800 started three from March, Starship did reach orbital velocity, and 0:13:41.559 --> 0:13:43.400 so I just want to correct that thing that Max said. 0:13:43.480 --> 0:13:47.080 But we'll get back to that launch later in June. 0:13:47.520 --> 0:13:49.560 Coming up on the program. Here's what we're going to 0:13:49.559 --> 0:13:52.640 be talking about on Bloomberg Technology, a lot of crypto 0:13:52.679 --> 0:13:55.240 discussion and a lot in the world of startups. Stick 0:13:55.280 --> 0:14:12.800 with us. This is Bloomberg Technology. Okay, it's time for 0:14:12.880 --> 0:14:16.400 talking tech and first stop. Source Code Capital is raising 0:14:16.400 --> 0:14:19.640 one of China's largest VC funds with the target of 0:14:19.680 --> 0:14:22.920 three hundred million dollars. That's according to sources, who say 0:14:22.920 --> 0:14:26.200 the fun goal is preliminary and could change. Source Code 0:14:26.200 --> 0:14:29.920 Capital was one of byte Dance's earliest backers, and if successful, 0:14:30.200 --> 0:14:33.280 will mark its first major investment vehicle since early twenty 0:14:33.360 --> 0:14:36.720 twenty one, plus, TikTok is making it easier for content 0:14:36.800 --> 0:14:41.320 creators to make money, although unofficially announced users have noticed, 0:14:41.360 --> 0:14:45.120 the threshold to join its Affiliates program dropped from five 0:14:45.200 --> 0:14:49.160 thousand to just one thousand followers. Affiliates can post videos 0:14:49.320 --> 0:14:53.240 promoting products sold through the TikTok shop and collect commissions 0:14:53.520 --> 0:14:56.040 on those sales. The latest move could help bring in 0:14:56.160 --> 0:14:59.840 users and bolster opposition to a US law that would 0:15:00.000 --> 0:15:02.760 horse parent company Bike Dance to sell the app or 0:15:02.800 --> 0:15:06.720 face being banned. And finally, open Ai is releasing past 0:15:06.760 --> 0:15:10.640 employees from a non disparagement clause that tied together their 0:15:10.680 --> 0:15:15.040 exit contracts and equity awards. Workers raise concerns after a 0:15:15.160 --> 0:15:17.840 Vox report last week on the clause that would allow 0:15:17.880 --> 0:15:22.440 open ai to clawback stock if employees spoke out against 0:15:22.480 --> 0:15:26.160 the company. OpenAI issued an apology for the contract and 0:15:26.240 --> 0:15:30.560 says it would remove the language from exit paperwork going forward. 0:15:30.840 --> 0:15:33.880 And a top story on Bloomberg, Alphabet and Meta have 0:15:34.000 --> 0:15:38.960 held discussions with major Hollywood studios about licensing content for 0:15:39.120 --> 0:15:42.640 use in the tech giant's AI video generation software. That's, 0:15:42.680 --> 0:15:46.040 according to sources, that's bringing Bloomberg's Lucas Shaw, who leads 0:15:46.040 --> 0:15:49.240 our screen time coverage and broke that story. So that's 0:15:49.320 --> 0:15:52.560 interesting because these are some sizable deals. We're talking about 0:15:52.800 --> 0:15:55.600 who's involved and who's involved in the conversation. 0:15:56.960 --> 0:15:59.520 The way to think about it is, there are conversations 0:15:59.520 --> 0:16:05.160 happening between anyone with you know, a big AI video model, 0:16:05.200 --> 0:16:08.119 so that's Open AI, with Sora, it's Alphabet, it's Meta 0:16:08.360 --> 0:16:12.840 and Hollywood companies. Much as you're seeing conversations between you know, 0:16:12.880 --> 0:16:17.120 the large language models more related to texts than news organizations, 0:16:17.320 --> 0:16:19.200 you're going to expect to see that on the video 0:16:19.320 --> 0:16:21.960 side with film and television studios. The differences is that 0:16:22.120 --> 0:16:26.080 while we've seen some news organizations brokeer deals with AI companies, 0:16:26.120 --> 0:16:29.320 and we've also seen lawsuits, and on the music side 0:16:29.320 --> 0:16:31.920 we've also seen some deal making in some lawsuits, the 0:16:32.320 --> 0:16:34.920 video side is a little less mature at the moment. 0:16:35.200 --> 0:16:39.200 There are a lot of conversations happening. People describe them 0:16:39.240 --> 0:16:41.480 as sort of wide ranging and parts of sort of 0:16:41.520 --> 0:16:44.560 larger business development conversations between some of these big tech 0:16:44.600 --> 0:16:47.960 companies and big media companies. But you've see media companies 0:16:48.080 --> 0:16:50.360 show sort of different willingness you know, it seems like 0:16:50.360 --> 0:16:52.520 Warner Brothers Discovery may be a little more open to 0:16:52.560 --> 0:16:54.880 doing deals than say a Disney or a Netflix. 0:16:55.520 --> 0:16:58.760 I feel like the AI industry is doing laps of 0:16:58.760 --> 0:17:01.360 Hollywood right now. Like you report to March, Open AI, 0:17:02.640 --> 0:17:06.000 we're over in having very similar conversations. Who's kind of 0:17:06.000 --> 0:17:09.239 got the upper hand? Like is it the sellers of 0:17:09.280 --> 0:17:12.840 the content that are in a position of power here? Well, 0:17:12.880 --> 0:17:13.600 it's a. 0:17:13.600 --> 0:17:16.320 Subject of some debate, right You know, on the one hand, 0:17:16.480 --> 0:17:21.040 you could argue that the people who have the AI 0:17:21.160 --> 0:17:24.480 models have the upper hand because they tend to believe 0:17:24.520 --> 0:17:26.160 that using a lot of this stuff. 0:17:25.880 --> 0:17:26.720 Can be fair use. 0:17:26.800 --> 0:17:28.720 And they may just there's some who believe that they've 0:17:28.760 --> 0:17:32.080 sort of already scraped a lot of information that Hollywood 0:17:32.080 --> 0:17:36.359 companies have, for example. On the other hand, you know, 0:17:36.640 --> 0:17:39.160 there is a going there's going to be a big 0:17:39.200 --> 0:17:42.920 debate over who ultimately controls things that may there may 0:17:42.960 --> 0:17:45.760 even be a debate between the studio and the talent. 0:17:45.880 --> 0:17:48.800 Right there's some kerfuffled this week involving Scarlett Johanson and 0:17:48.880 --> 0:17:52.000 Open AI, And I've seen some credible people argue that 0:17:52.160 --> 0:17:56.119 right now, the companies like Disney or Warner brother Discovery 0:17:56.160 --> 0:17:58.800 have a decent amount of leverage because they have something 0:17:58.840 --> 0:18:01.120 that these companies want, and so they might as well 0:18:01.160 --> 0:18:04.240 try to extract the most favorable terms, while the AI 0:18:04.320 --> 0:18:06.920 models are still very nathant and not that powerful. 0:18:07.880 --> 0:18:11.399 Bloomberg's lucas sure with another important piece of reporting on 0:18:11.480 --> 0:18:14.240 screen time, Thank you. Let's get to another big story 0:18:14.440 --> 0:18:17.159 in the world of Bloomberg Technology. Into It shares slid 0:18:17.200 --> 0:18:19.720 by the most in more than a year after the 0:18:19.760 --> 0:18:24.080 company reported losing one million customers who use its TurboTax 0:18:24.200 --> 0:18:28.840 service for free, stoking concerns about demand for the software. 0:18:29.240 --> 0:18:33.119 Joining us. Bloomberg's Brodie Ford in part of the problem 0:18:33.160 --> 0:18:35.919 here is that a lot of what's on offer you 0:18:35.960 --> 0:18:39.480 can find somewhere else for free in some cases. 0:18:41.240 --> 0:18:44.120 Yeah, I mean, what's so surprising here is a big 0:18:44.119 --> 0:18:46.960 part of Into its valuation is this idea that once 0:18:47.040 --> 0:18:50.560 you use it, it's rare to stop using it because 0:18:50.920 --> 0:18:53.800 you get all your data in there, it becomes very easy. 0:18:53.960 --> 0:18:57.640 It'll import previous year's information. I mean, I've certainly used 0:18:57.640 --> 0:18:59.960 TurboTax the last couple of years because it's very easy. 0:19:00.040 --> 0:19:00.240 See. 0:19:00.840 --> 0:19:05.040 But yeah, seeing one million free users lead that makes 0:19:05.080 --> 0:19:07.360 investors say, hold up, what's going on at the low 0:19:07.480 --> 0:19:10.240 end of this market here? And yeah, part of it 0:19:10.320 --> 0:19:14.120 is that there are other places that you can get this. 0:19:14.320 --> 0:19:17.040 I mean, one example is that the federal government had 0:19:17.080 --> 0:19:20.359 a pilot program this year where about one hundred and 0:19:20.359 --> 0:19:23.480 fifty thousand people used it and they could get a 0:19:23.560 --> 0:19:26.120 similar service for free. 0:19:26.600 --> 0:19:29.159 I did something highly unusual this year. I was a 0:19:29.200 --> 0:19:33.000 TurboTax user. I did something that no one's doing. I 0:19:33.119 --> 0:19:36.440 hired a human being and engage with a human being 0:19:36.560 --> 0:19:40.760 to do my taxes for me, like the ANTIAI play. 0:19:41.440 --> 0:19:44.040 The point there is that there are other things into 0:19:44.080 --> 0:19:46.720 it does, right, It's not just TurboTax. They're trying to 0:19:46.760 --> 0:19:50.360 be like a one stop shop for financial data or tools. 0:19:50.800 --> 0:19:53.600 Is that enough to keep them going well? 0:19:53.640 --> 0:19:55.639 That was the total dynamic that we saw in the 0:19:55.680 --> 0:19:58.919 earnings this year. You were certainly on these results that 0:19:59.040 --> 0:20:04.679 people liked the high touch, you know, assisted methods that 0:20:04.760 --> 0:20:08.520 in subways replaces your local tax store. So at the 0:20:08.560 --> 0:20:10.960 high end of the market that the ed Lovelow's they 0:20:11.000 --> 0:20:14.160 actually were doing very well. But for people who are 0:20:14.200 --> 0:20:17.399 saying like A, I don't need this, CPA, I'm not 0:20:17.520 --> 0:20:20.480 doing this. You know, they're the ones who might have 0:20:20.640 --> 0:20:24.160 turned over to you know, your tax layers or all 0:20:24.160 --> 0:20:27.560 these sites that look a little fishy but probably work, 0:20:27.840 --> 0:20:28.560 you know fairly. 0:20:28.600 --> 0:20:33.080 Well, yeah, I should maybe no comment on the complexity 0:20:33.119 --> 0:20:37.800 of human versus website taxes. Hey, just real quick. You 0:20:37.840 --> 0:20:40.200 probably heard a minute ago that we had Cameron from 0:20:40.240 --> 0:20:43.679 canvar on and just the last thing you said, we 0:20:43.760 --> 0:20:46.560 don't want to be acquired. Kind of thought that was interesting. 0:20:46.600 --> 0:20:47.360 What do you make of it? 0:20:48.440 --> 0:20:50.760 Yeah, I mean it's not a total because you think 0:20:50.760 --> 0:20:53.480 about who would acquire Canva, it would have to be 0:20:53.520 --> 0:20:57.119 a massive company, probably with some creative overlap, you know, 0:20:57.240 --> 0:20:59.880 with some pretty small universal companies. What call it, Mike 0:21:00.280 --> 0:21:03.240 after a Dolby. We saw what happened when Adobi tried 0:21:03.280 --> 0:21:05.360 to acquire a Figma. They weren't allowed to do it. 0:21:05.760 --> 0:21:08.240 I would be very, very shocked if some of these 0:21:08.320 --> 0:21:10.240 M and A lawyers said that they thought they could 0:21:10.280 --> 0:21:12.920 get a Canva acquisition through with anybody who had the 0:21:12.960 --> 0:21:14.720 money to buy them. 0:21:15.119 --> 0:21:19.040 Bloomberg's Brady Ford always love having on the program. Happy Friday, 0:21:19.080 --> 0:21:30.159 Thank you so much. Welcome back to Bloomberg Technology. Ed 0:21:30.240 --> 0:21:32.440 Ludlow in San Francisco. We're feeling good this Friday. We're 0:21:32.520 --> 0:21:34.840 ending the week on a high in the equity market, 0:21:34.840 --> 0:21:36.680 so let's get to the NAZAQ one hundred. The NAZAK 0:21:36.720 --> 0:21:40.160 one hundred is kind of my go to tech heavy index. 0:21:40.200 --> 0:21:43.040 It's trading at a record high. But I guess as 0:21:43.080 --> 0:21:45.040 we end the week, we're also on track for the 0:21:45.160 --> 0:21:48.520 fifth straight week of gains, which is, wait for it, 0:21:49.080 --> 0:21:52.119 the longest streak of weekly gains going back to February. 0:21:52.160 --> 0:21:54.800 So the story this week has very much been about 0:21:55.160 --> 0:21:59.320 Nvidia propping up the market frankly following its blockbuster earnings. 0:21:59.680 --> 0:22:02.240 Others moved to the downside. But we had that kind 0:22:02.240 --> 0:22:07.520 of softer secondary data this morning consumer inflation expectations that 0:22:07.640 --> 0:22:10.639 made us think that maybe rate cuts will happen at 0:22:10.640 --> 0:22:13.440 some point this year after all. Who knows. The other 0:22:13.480 --> 0:22:15.400 big story of the week, of course, is what's happening 0:22:15.600 --> 0:22:17.600 in the world of crypto markets. I want to go 0:22:17.920 --> 0:22:21.040 to my dear friend Bloembotionhnali bassek Over in New York, 0:22:21.080 --> 0:22:22.520 who's going to tell me all about ether. 0:22:23.000 --> 0:22:25.320 Hello, We're going to talk about it ed because of course, 0:22:25.359 --> 0:22:28.160 it has been a week of whiplash, and let's see 0:22:28.160 --> 0:22:30.600 how far we've come before. We talk about the implications 0:22:30.600 --> 0:22:33.280 here on what it would mean for the SEC to 0:22:33.440 --> 0:22:37.360 formally approve a spot ether et app. If you take 0:22:37.400 --> 0:22:39.840 a look here, this is bitcoin on the screen, and 0:22:39.880 --> 0:22:42.600 you do have a trading now over sixty eight thousand. 0:22:42.920 --> 0:22:45.000