WEBVTT - Tech Charges Higher and Adobe Misses the Mark 0:00:02.440 --> 0:00:06.760 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.280 --> 0:00:09.640 We're from Mahard. 0:00:09.280 --> 0:00:13.720 Where innovation, money and power Collie in Silicon Valley NBN. 0:00:14.080 --> 0:00:18.360 This is Bloomberg Technology with Caroline Hyde and Ed lud Love. 0:00:31.720 --> 0:00:32.560 Live from New York. 0:00:32.840 --> 0:00:36.239 This is Bloomberg Technology coming up. Tech charges higher as 0:00:36.240 --> 0:00:38.360 the NASDAC is sept for its best week of the year. 0:00:38.840 --> 0:00:42.040 We dig into the AI drivers as even as Adobe. 0:00:42.120 --> 0:00:45.320 This is the mark a mutant forecast on AI growth, 0:00:45.360 --> 0:00:49.120 overshadowing better than expected third quarter results. And Uber it 0:00:49.240 --> 0:00:52.680 powers ahead as it expands its partnership with Weimo, bringing 0:00:52.680 --> 0:00:56.640 autonomous right hailing to Austin and Atlanta. But let's look 0:00:56.680 --> 0:01:00.000 into what's happening with Uber because we are driving higher 0:01:00.360 --> 0:01:03.000 the putt four point nine percent. This is all surrounding, 0:01:03.040 --> 0:01:04.639 of course, a deal that it's making with Waymo. 0:01:04.760 --> 0:01:07.080 It really wants the owning autonomous driving. 0:01:07.160 --> 0:01:09.480 Let's dig into that news that it will basically be 0:01:09.480 --> 0:01:12.760 the only app offering driverless rides in waymow cars in 0:01:12.840 --> 0:01:14.160 Austin and Atlanta. 0:01:14.440 --> 0:01:17.600 So good news for this stock. Natalie Lung is with us. 0:01:17.520 --> 0:01:21.080 To break it all down, and Natalie overall, I am 0:01:21.120 --> 0:01:25.080 wandering more broadly about well what Uber. 0:01:24.800 --> 0:01:25.360 Is seeing here. 0:01:25.480 --> 0:01:29.000 Is it the challenge coming from robo taxes, challenge coming 0:01:29.240 --> 0:01:32.080 from Tesla, or is it something else that drives us? 0:01:32.760 --> 0:01:35.039 He couldn't be a combination of all these things. And 0:01:35.160 --> 0:01:39.360 Uber wants to make early innings into being the platform 0:01:39.400 --> 0:01:42.200 that people go to, that regular people go to to 0:01:42.240 --> 0:01:46.240 get these consumer that get these driverless rides. So that's 0:01:46.280 --> 0:01:50.520 why they're making partnerships with Weimo, as with Cruise as 0:01:50.560 --> 0:01:55.520 well as byd for ride experiences outside the US. And 0:01:55.560 --> 0:01:59.040 it wants to be that so called indispensable partner to 0:01:59.080 --> 0:02:02.640 all these manufacturers who are looking to put their driverers 0:02:02.640 --> 0:02:03.360 cars to use. 0:02:04.000 --> 0:02:06.800 It's going to bring on board all electric Jaguar Ipace 0:02:06.920 --> 0:02:10.680 vehicles the way mo offering how quickly am I going 0:02:10.720 --> 0:02:12.359 to be able to get in one at the moment? 0:02:12.520 --> 0:02:15.200 Where which cities? How fast will this expand? 0:02:16.080 --> 0:02:16.240 Right? 0:02:16.320 --> 0:02:19.600 So, Uber and Waimo currently has a collaboration in Phoenix, 0:02:19.840 --> 0:02:23.680 so that's happening there now, but starting early next year, 0:02:24.240 --> 0:02:28.440 Uber will be offering those way more rides exclusively in 0:02:28.560 --> 0:02:30.080 Austin and Atlanta. 0:02:30.840 --> 0:02:32.520 It really is a good day for the Uber stock. 0:02:32.520 --> 0:02:34.840 We're popping first days since August the eighth, but up 0:02:34.840 --> 0:02:37.400 almost five percent. Natalie Lung breaks down, we appreciate it 0:02:37.440 --> 0:02:40.680 so much. Meanwhile, Adobe ches doing the opposite, whipsawing to 0:02:40.720 --> 0:02:43.440 the lower side today after the company reported earnings yesterday, 0:02:43.480 --> 0:02:47.560 after the bell outlook really failed to quell investor impatience 0:02:47.960 --> 0:02:51.560 for new AI tools to start generating cash. Bradie Ford 0:02:51.600 --> 0:02:54.080 pointed us toward it yesterday and is here with the 0:02:54.120 --> 0:02:57.559 results today, and it does seem to be the digital media. 0:02:57.320 --> 0:02:58.720 Side that is letting the side down. 0:03:00.120 --> 0:03:03.080 Yeah, Well, here's the big question for these software companies 0:03:03.160 --> 0:03:06.240 that were the big winners over the last decade. Is 0:03:06.400 --> 0:03:10.119 AI a meaningful new product that will unlock new revenue? 0:03:10.639 --> 0:03:12.600 Are Is it just kind of like a cool feature 0:03:12.639 --> 0:03:14.880 that you add in and it's a nice to have, 0:03:15.120 --> 0:03:18.160 but it doesn't really move the needle. And that's the 0:03:18.240 --> 0:03:20.880 question that investors been batting back and forth with Adobe. 0:03:20.960 --> 0:03:22.840 And what we saw last night is just that that 0:03:23.639 --> 0:03:26.560 incremental revenue they were hoping to see from new AI 0:03:26.680 --> 0:03:30.639 products at least isn't materializing yet. We have executives talking 0:03:30.639 --> 0:03:35.160 about we are optimizing for use and adoption rather than 0:03:35.280 --> 0:03:37.400 really driving monetization on these products. 0:03:37.440 --> 0:03:37.720 Yet. 0:03:38.280 --> 0:03:41.000 Yeah, what did Chantanu have to say, to quell investors 0:03:41.080 --> 0:03:43.200 nerves because this is a heavy sell off in the stock. 0:03:43.800 --> 0:03:44.680 But they seem to be. 0:03:44.640 --> 0:03:48.920 Trying to show that, yes, they're driving profitability, they're driving 0:03:49.000 --> 0:03:51.480 forward in terms of their offerings, but not really speaking 0:03:51.520 --> 0:03:52.240 to this weakness. 0:03:53.520 --> 0:03:53.800 Yeah. 0:03:53.880 --> 0:03:57.000 Their defense, as I read it, and it was a 0:03:57.000 --> 0:04:00.400 bit of a subtle one, is that AI is still 0:04:00.440 --> 0:04:03.680 a value ad because it keeps folks from going to 0:04:03.720 --> 0:04:07.760 our competitors and it allows us to increase prices. Right, 0:04:07.840 --> 0:04:10.360 so it's not that I'm paying an additional ten dollars 0:04:10.360 --> 0:04:12.840 for the new AI tools, but it's that, well, I'm 0:04:12.880 --> 0:04:15.760 not going to go install Canva, and if you raise 0:04:15.800 --> 0:04:18.520 my prices ten percent, I'm not going to cancel, and 0:04:18.560 --> 0:04:20.560 I'm not going to fight you either. And so they 0:04:20.640 --> 0:04:24.000 said that it's it's kind of an indirect monetization story 0:04:24.040 --> 0:04:26.720 at this point, with more direct monetization to come in 0:04:26.760 --> 0:04:27.240 the future. 0:04:27.680 --> 0:04:30.960 What levers, therefore, can they pull to monetize in the future. 0:04:32.160 --> 0:04:34.400 In the future, the idea would be that you know 0:04:34.760 --> 0:04:38.000 generation saying photoshop, click here, make a picture of a 0:04:38.080 --> 0:04:41.440 dog doing a backflip. Every time you do that, you 0:04:41.520 --> 0:04:44.719 have let's say a thousand credit standard for generations you 0:04:44.760 --> 0:04:48.039 go above that, you start getting charged. That's one method. 0:04:48.760 --> 0:04:52.200 In more resource intensive models such as video, which they're 0:04:52.240 --> 0:04:54.599 working on, they said that could be a whole different 0:04:54.640 --> 0:04:58.200 monetization mechanism, in part because the compute would probably be 0:04:58.240 --> 0:05:02.560 so much higher. So general credit packs, consumption and additional 0:05:02.640 --> 0:05:06.760 productiers would be the general way folks would expect. And 0:05:06.800 --> 0:05:08.200 they've spoken about. 0:05:09.520 --> 0:05:13.520 One area of focus that we have for Adobe going 0:05:13.560 --> 0:05:15.840 forward has been the investment that they're having to make 0:05:15.880 --> 0:05:18.200 as well. The partnerships are striking where they're trying. You 0:05:18.240 --> 0:05:21.240 were on yesterday just talking through how these businesses are 0:05:21.279 --> 0:05:24.919 trying to delve into the three D modeling side of things. 0:05:25.000 --> 0:05:28.280 How expensive is the artificial intelligence offering for them. 0:05:29.640 --> 0:05:32.880 The beauty of being a giant company like Adobe. Some 0:05:32.920 --> 0:05:35.320 folks have told me that Adobe Suite of Creative Tools 0:05:35.400 --> 0:05:38.719 is one of the most profitable products ever and so 0:05:38.880 --> 0:05:40.640 they have a bit of a mountain of cash and 0:05:40.680 --> 0:05:44.000 so they're definitely able to train these things and throw 0:05:44.080 --> 0:05:46.960 some money around without it being too diluted at this point. 0:05:47.040 --> 0:05:50.120 So it's a big expense, especially for the startups. We 0:05:50.200 --> 0:05:52.080 hear about it being a you know, it can be 0:05:52.080 --> 0:05:56.000 even inhibiting factor. Adobe has really tried to message that, look, 0:05:56.080 --> 0:05:59.479 we have a diversified business. We are willing to pull 0:05:59.560 --> 0:06:01.479 some cash over here and put it over here to 0:06:01.520 --> 0:06:03.960 make sure we're able to keep on doing this and 0:06:04.040 --> 0:06:07.680 keep getting adoption. And they generally think that they're best 0:06:07.720 --> 0:06:12.720 set by centralizing users on Adobe and keeping them there 0:06:12.760 --> 0:06:16.239 by keeping AI accessible for a little longer before jacking 0:06:16.320 --> 0:06:17.000 up the prices. 0:06:17.640 --> 0:06:29.400 Ready, Ford, we thank you, thank you. Let's talk aviation 0:06:29.600 --> 0:06:32.880 tech right now. Boeing factory workers walked off the job 0:06:32.960 --> 0:06:35.880 for the first time in sixteen years today, halting manufacturing 0:06:35.880 --> 0:06:38.840 across the plane maker's Seattle hub. This after members of 0:06:38.880 --> 0:06:42.280 its largest union voted overwhelmingly to reject a contract offer 0:06:42.320 --> 0:06:45.240 angle on strike. While both parties have expressed a desire 0:06:45.240 --> 0:06:48.040 to get back to the bargaining table to move ads 0:06:48.080 --> 0:06:50.880 to the strain on Boeing, let's just stick with the 0:06:50.880 --> 0:06:53.720 airline industry now, because United Airlines has announced a deal 0:06:53.760 --> 0:06:57.039 with Starlink. The airline is set to offer in flight 0:06:57.120 --> 0:07:01.320 Wi Fi through SpaceX's Internet service for free. Winimberg's Nongrasch 0:07:01.400 --> 0:07:03.920 joins us now, Wow, no more five dollars ninety nine 0:07:03.960 --> 0:07:06.479 minimum spends when if you get on the plane. What 0:07:06.520 --> 0:07:09.760 does it say about Starlink's reliability in the air right. 0:07:09.840 --> 0:07:12.520 I think a lot of people were wondering when, you know, 0:07:12.600 --> 0:07:14.440 they would strike a big deal with one of the 0:07:14.480 --> 0:07:17.440 major airlines, and I think what it's showing is that 0:07:17.720 --> 0:07:20.200 all right. You know, there were some questions about whether 0:07:20.280 --> 0:07:23.200 or not it could handle the capacity earlier, but now 0:07:23.240 --> 0:07:25.800 I think at least one of these airlines says all right, 0:07:26.080 --> 0:07:28.640 I think they're ready to handle our fleet of vehicles. 0:07:28.960 --> 0:07:30.640 When you say one of these airlines one of the 0:07:30.680 --> 0:07:32.800 big carriers in the US, they've already got to deal 0:07:32.880 --> 0:07:34.760 with Hawaiian airlines, right, They've. 0:07:34.560 --> 0:07:38.800 Got JSX, which is a smaller airline you know, predominantly 0:07:38.800 --> 0:07:41.840 based out of Texas. But yes, this is one of 0:07:41.840 --> 0:07:44.040 the big four, if you will. And so now they 0:07:44.080 --> 0:07:46.600 finally have I think the bragging rights that they need 0:07:46.640 --> 0:07:48.800 to say, all right, we are here for the big time, 0:07:48.880 --> 0:07:49.680 the big players. 0:07:50.160 --> 0:07:51.120 Just look at this deal. 0:07:51.360 --> 0:07:53.400 Scott Kirby really talking about how you're gonna be able 0:07:53.440 --> 0:07:55.720 to just walk straight on the plane from the lounge. 0:07:56.080 --> 0:08:01.480 Everything will be seamless. Ultimately you'll be connected devices. Also, 0:08:01.640 --> 0:08:03.960 what you're going to be using on the aircraft itself. 0:08:04.680 --> 0:08:07.960 What in terms of market shared. Do analysts think that 0:08:08.000 --> 0:08:10.240 they're able to get his Scott Kirby the first guy 0:08:10.320 --> 0:08:11.640 to go and everyone else follows. 0:08:11.920 --> 0:08:12.320 I think so. 0:08:12.480 --> 0:08:14.520 I think a lot of people think this might be like. 0:08:14.520 --> 0:08:16.480 A watershed moment for them, you. 0:08:16.400 --> 0:08:20.120 Know, because it's a big advertising get right. They can say, 0:08:20.160 --> 0:08:22.600 all right, here we have one of the major players. 0:08:22.680 --> 0:08:24.600 When are the other ones going to follow suit? And 0:08:24.680 --> 0:08:27.200 so that's I think really the big get for them. 0:08:27.560 --> 0:08:30.320 The technology is what we love to hear from you 0:08:30.480 --> 0:08:34.760 and ultimately, how hard is this? We all understand how 0:08:34.800 --> 0:08:37.440 glitchy the airline Wi Fi is at the moment, why 0:08:37.559 --> 0:08:37.800 is that? 0:08:37.960 --> 0:08:38.960 What does starting offer? 0:08:39.080 --> 0:08:41.320 Well, one of the big advantages that starlink has over 0:08:41.400 --> 0:08:45.800 its competitors for other Internet satellites is that they're closer. Right, 0:08:45.880 --> 0:08:49.199 So the incumbents that a lot of the airlines use 0:08:49.360 --> 0:08:51.840 use satellites that are in much higher orbits and so 0:08:52.240 --> 0:08:54.920 there's a latency. There's that lag that I'm sure everybody 0:08:55.000 --> 0:08:58.000 has been frustrated with on their planes from time to time. 0:08:58.280 --> 0:09:01.640 But what starlink offers their satellites are much closer to 0:09:01.679 --> 0:09:04.680 the Earth and so you can have that cut down 0:09:04.679 --> 0:09:08.040 in latency. Of course, that comes with more satellites in orbit. 0:09:08.080 --> 0:09:09.800 They need to launch more and more so that they 0:09:09.800 --> 0:09:12.440 can have that global coverage because when you're closer to 0:09:12.440 --> 0:09:14.760 the Earth, the satellites are moving a lot quicker, and 0:09:14.840 --> 0:09:17.280 so in order to have a satellite overhead at any 0:09:17.280 --> 0:09:20.760 given time, they just have to keep launching satellites. It's 0:09:20.800 --> 0:09:23.240 basically a numbers game. But if they are able to 0:09:23.320 --> 0:09:25.800 have enough satellites in orbit, then you cut down down 0:09:25.840 --> 0:09:28.040 that latency and it's a more seamless experience. 0:09:28.360 --> 0:09:31.520 Willumbre analyst Luis de Palmas, he's to be saying Stalin 0:09:31.559 --> 0:09:33.800 is in no oppositioned to have the highest aviation mock 0:09:33.880 --> 0:09:36.280 show in the next decade, but he's not saying in 0:09:36.320 --> 0:09:37.600 the next two or three years. 0:09:37.640 --> 0:09:38.480 This takes time run. 0:09:38.600 --> 0:09:41.320 Yeah, it's definitely going to take time. And as we've seen, 0:09:41.720 --> 0:09:44.600 you know, in terms of where Starlink has excelled, they've 0:09:44.640 --> 0:09:48.360 really gone up in numbers. When it comes to individual subscribers, 0:09:48.960 --> 0:09:52.880 maritime deals. They're definitely very popular over the ocean right 0:09:52.920 --> 0:09:56.720 because there's less demand there, But when it comes to 0:09:57.240 --> 0:10:01.480 the you know, over land and with bigger airlines, you 0:10:01.520 --> 0:10:02.760 know that's going to take some time. 0:10:03.040 --> 0:10:03.959 Also, you know, you have. 0:10:03.920 --> 0:10:06.600 To get certain approvals, you have to re outfit the planes, 0:10:06.960 --> 0:10:08.480 so it's going to be a slow process. 0:10:08.520 --> 0:10:09.680 But this is just the first step. 0:10:09.720 --> 0:10:11.440 And well it'll be interesting to see if any of 0:10:11.440 --> 0:10:12.480 the other airlines follow. 0:10:13.280 --> 0:10:15.439 I'm crush, what joy to have you in the studio 0:10:15.520 --> 0:10:17.760 in New York. Watch this here traveling thank you so 0:10:17.880 --> 0:10:21.280 much in a busy week in space elsewhere and transportation, 0:10:21.520 --> 0:10:24.760 Amazon says it will invest more than two billion dollars 0:10:24.760 --> 0:10:28.040 in its delivery service partner program, especially in an effort 0:10:28.120 --> 0:10:30.720 to raise driver pay to a national average about twenty 0:10:30.760 --> 0:10:33.920 two dollars an hour. Bloomberg's Matt Day reporting across this. 0:10:34.000 --> 0:10:36.280 Why do it, Matt Well? 0:10:36.280 --> 0:10:36.480 Why? 0:10:36.600 --> 0:10:39.360 The first and kind of obvious context behind this is 0:10:39.400 --> 0:10:42.760 a pressure from labor groups. You know, Amazon's contract delivery 0:10:42.800 --> 0:10:44.800 drivers are a focused for the team Stais in particular, 0:10:44.840 --> 0:10:46.760 they put a big target on Amazon's back, saying we're 0:10:46.760 --> 0:10:50.520 going after them. Famously, these folks represent ups and have 0:10:50.640 --> 0:10:52.920 said they think they can organize an Amazon worker. So 0:10:52.960 --> 0:10:54.640 Amazon playing a little bit of defense here. 0:10:55.280 --> 0:10:59.240 Defense Ultimately, why do they go for contractors? To begin with? 0:10:59.520 --> 0:11:01.400 Why don't they hire their own drivers? 0:11:02.640 --> 0:11:04.280 You know, the argument they make is that it's about 0:11:04.280 --> 0:11:07.480 empowering small businesses. I think labor experts would maybe bat 0:11:07.480 --> 0:11:09.160 an eye at that, but it is. It is a 0:11:09.200 --> 0:11:12.120 relatively common model, right, FedEx uses you know, versions of this. 0:11:12.240 --> 0:11:14.760 Uber you know, famously doesn't employ its own folks either. 0:11:15.400 --> 0:11:17.640 So for Amazon, this gives them, you know, a bit 0:11:17.640 --> 0:11:18.720 of a best of both worlds. 0:11:18.800 --> 0:11:18.920 Right. 0:11:18.960 --> 0:11:20.800 They don't have to provide you know, the perks of 0:11:20.840 --> 0:11:23.400 employees to these folks directly. You know, at the same time, 0:11:23.440 --> 0:11:26.960 they can exert a relatively high degree of control over independent, 0:11:27.040 --> 0:11:28.679 often bespoke contract outfits. 0:11:29.120 --> 0:11:30.320 How does it look abroad? 0:11:30.440 --> 0:11:32.839 Is it this model in the US? 0:11:33.200 --> 0:11:34.400 Same elsewhere? Different? 0:11:35.480 --> 0:11:37.120 There are versions of it, and obviously, you know, in 0:11:37.160 --> 0:11:39.400 countries with stricter labor laws, you know, they have to 0:11:39.400 --> 0:11:41.880 comply with those. The US has fewer of those when 0:11:41.880 --> 0:11:44.439 it comes to last mile drivers, but there are versions 0:11:44.440 --> 0:11:47.480 of their Delivery Service Partner program abroad. They say there's 0:11:47.520 --> 0:11:50.720 something like three hundred and ninety thousand drivers employed by 0:11:50.800 --> 0:11:53.199 DSP's worldwide, So it's a it's a huge portion of 0:11:53.240 --> 0:11:55.200 their you know, kind of workforce that does not accrue 0:11:55.240 --> 0:11:56.000 to their books. 0:11:56.760 --> 0:11:59.800 And let's talk about that books because I think Ultimately, 0:12:00.240 --> 0:12:03.080 this is a business that has been cutting jobs, has 0:12:03.120 --> 0:12:06.040 been getting leaner and meaner in areas it can, while 0:12:06.040 --> 0:12:09.760 it's splurges an awful lot on artificial intelligence and compute. 0:12:10.400 --> 0:12:12.679 What does this say a two billion dollar investment, what 0:12:12.720 --> 0:12:15.200 does that in the context of Amazon's overall spending. 0:12:16.200 --> 0:12:18.400 I think it's a reminder that, you know, as people 0:12:18.400 --> 0:12:20.319 talk about them as a technology company, you know, their 0:12:20.320 --> 0:12:23.480 core business of getting you things you know by by 0:12:23.520 --> 0:12:25.800 delivery is still growing, even if it's slower than it 0:12:25.840 --> 0:12:27.839 was during the boom years, and it still requires a 0:12:27.840 --> 0:12:29.199 whole lot of bodies to make it work. 0:12:29.280 --> 0:12:29.400 Right. 0:12:29.400 --> 0:12:31.600 We're going to see surely from them announcements about their 0:12:31.600 --> 0:12:33.880 seasonal hiring coming up for the fall, for the the 0:12:34.040 --> 0:12:36.440 peak holiday season, something they do every year about this time. 0:12:37.120 --> 0:12:39.000 So just a reminder I think that, you know, listen, 0:12:39.040 --> 0:12:41.520 while they're they is getting all the headlines, they still 0:12:41.520 --> 0:12:43.439 are moving a whole lot of stuff and require a 0:12:43.440 --> 0:12:45.840 lot of partners to make that happen that day. 0:12:46.240 --> 0:12:49.439 All things Amazon, we appreciate it, Thank you so much. Now, 0:12:49.480 --> 0:12:53.319 coming up with the dirt bag of the Internet, who 0:12:53.360 --> 0:12:56.120 happens to be behind the Crypto project promoted by Donald Trump? 0:12:56.840 --> 0:13:13.920 That's next. This is Blouly Big Technology Revolute. 0:13:14.080 --> 0:13:17.240 It's seeking licenses to start operating in the Middle East. 0:13:17.600 --> 0:13:21.160 This is the London fintech giant hunts for growth beyond. 0:13:20.840 --> 0:13:21.760 Its home market. 0:13:22.000 --> 0:13:24.760 Now the firm has submitted applications to the Central Bank of. 0:13:24.760 --> 0:13:26.559 The UAE reporting. 0:13:26.160 --> 0:13:30.000 Shows to become an electronic money institution and offer remittiscences 0:13:30.559 --> 0:13:34.040 in the country they of course. The sources currently speaking 0:13:34.040 --> 0:13:36.880 to Bloomberg say that the goal is to eventually apply 0:13:37.000 --> 0:13:39.880 for a full banking license similar to the one that 0:13:39.920 --> 0:13:42.959 it recently received from regulators in the UK after years 0:13:43.480 --> 0:13:47.040 of work. Now let's stick with the world of fintech, 0:13:47.080 --> 0:13:49.400 but the crypto side of it. In the last year, 0:13:49.480 --> 0:13:52.880 Donald Trump has fashioned himself into a friend to the 0:13:52.960 --> 0:13:56.720 cryptocurrency crowd. He and his two older sons now have 0:13:56.800 --> 0:14:00.720 been particularly good friends to World Liberty Finance, the crypto 0:14:00.760 --> 0:14:04.040 project they've been promoting on social media. Here to tell 0:14:04.080 --> 0:14:07.440 us more about well, the deal maker behind the project, 0:14:07.760 --> 0:14:12.120 Sloomberg Investigative reporters Fox. You're also the author of book 0:14:12.320 --> 0:14:15.319 Number Go Up Inside Crypto's Wild Rise and Staggering four, 0:14:15.360 --> 0:14:18.280 which is up for a few awards. So congratulations on 0:14:18.320 --> 0:14:23.000 that Zeke, you start your story focused on Chase Hero. 0:14:23.680 --> 0:14:24.960 What can you tell about this guy? 0:14:26.320 --> 0:14:29.240 Yeah, so Chase is an unknown in the crypto world, 0:14:29.480 --> 0:14:32.320 but I dug it into his career and he's been 0:14:32.360 --> 0:14:35.560 a marijuana dealer. He says he went to prison for that. 0:14:36.160 --> 0:14:40.280 He sold weight loss calling cleanses online. He had one 0:14:40.360 --> 0:14:43.160 hundred and forty nine dollars a month Get Rich Quick class. 0:14:43.440 --> 0:14:46.280 And then now he appears to be the main deal 0:14:46.280 --> 0:14:50.400 maker behind World Liberty Financial, which is this defive startup 0:14:50.760 --> 0:14:53.640 the Trumps are promoting, and President Trump himself posted a 0:14:53.720 --> 0:14:56.040 video saying, you know this is going to challenge the 0:14:56.040 --> 0:14:58.320 big banks. So it's really bizarre to see that this 0:14:58.440 --> 0:14:59.840 is the person they're partnering with. 0:15:00.960 --> 0:15:05.160 I'm sorry, the guy behind this DeFi project isn't even 0:15:05.200 --> 0:15:06.200 known in the crypto world. 0:15:07.400 --> 0:15:10.320 No, and I mean he calls himself in videos. He 0:15:10.400 --> 0:15:12.560 likes to call himself the dirt bag of the Internet. 0:15:13.080 --> 0:15:17.120 I found in another video he said regulators should kick 0:15:17.160 --> 0:15:19.080 people like him out of the industry, and not in 0:15:19.120 --> 0:15:23.240 those words. He seems to have a very cynical, to 0:15:23.280 --> 0:15:28.440 say the least, attitude towards crypto and this project World Liberty. 0:15:28.840 --> 0:15:30.600 You know it might sound kind of impressive if you 0:15:30.640 --> 0:15:33.760 didn't know about crypto, but it appears to be kind 0:15:33.760 --> 0:15:36.280 of a copy of an existing project that didn't go 0:15:36.320 --> 0:15:38.320 anywhere and then lost a lot of money in a hack. 0:15:38.960 --> 0:15:43.280 Yeah, you're talking about the Dough project, right, Dough. That 0:15:43.400 --> 0:15:46.080 seems to be what's got actually industry inside. Is the 0:15:46.080 --> 0:15:48.840 crypto industry a little worried is ultimately that the people 0:15:48.880 --> 0:15:52.680 behind Well Liberty Financial have come across from a much 0:15:52.720 --> 0:15:55.400 smaller project that didn't manage to raise that many funds 0:15:55.760 --> 0:15:56.800 and actually got hacked. 0:15:58.360 --> 0:16:01.400 Yes, and I mean we don't know the details of 0:16:01.440 --> 0:16:05.360 World Liberty. I obtained a white paper that lays out 0:16:05.400 --> 0:16:08.360 some of them, but I'm sure it's all subject of change. 0:16:08.680 --> 0:16:11.680 But this is supposed to be defile like decentralized finance. 0:16:11.880 --> 0:16:16.080 The white paper says that seventy percent of the tokens 0:16:16.760 --> 0:16:20.720 will be reserved for insiders. So talking to people in crypto, 0:16:21.080 --> 0:16:23.160 they said, this looks like it could be more of 0:16:23.160 --> 0:16:25.560 a cash grab than an innovative project. 0:16:26.640 --> 0:16:29.400 Okay, And there in lies the issue that this could 0:16:29.440 --> 0:16:30.600 be some sort of cash grab. 0:16:30.680 --> 0:16:31.080 Some of the. 0:16:31.080 --> 0:16:33.800 Details in your story and that might hint that there's 0:16:33.840 --> 0:16:37.280 a slight difference in how this DeFi project is run 0:16:37.360 --> 0:16:41.520 compared to others is that the people behind the cut 0:16:41.600 --> 0:16:45.400 the overall project keep what of issue tokens. 0:16:45.400 --> 0:16:45.960 That's a lot. 0:16:47.560 --> 0:16:51.160 Yeah, And I mean like we're talking about this like 0:16:51.680 --> 0:16:53.280 I think we're talking about this even a little bit 0:16:53.360 --> 0:16:56.240 too seriously. Like you should go go read what this 0:16:56.320 --> 0:16:59.000 guy says about crypto. I mean, I can't, I can't 0:16:59.040 --> 0:17:02.960 repeat it. The language to this is a family TV channel, 0:17:03.160 --> 0:17:07.359 I guess, but the way he talks about it doesn't 0:17:07.400 --> 0:17:10.520 give you any confidence that this is a serious project 0:17:10.800 --> 0:17:13.879 that's going to challenge big banks. 0:17:14.400 --> 0:17:19.600 He says, basically, you can sell us a rubbish and 0:17:19.640 --> 0:17:22.360 anyone will buy it in crypto. He happened to say 0:17:22.359 --> 0:17:24.520 that in a twenty eighteen YouTube video recorded as he 0:17:24.600 --> 0:17:25.919 drove his rolls Royce. 0:17:26.680 --> 0:17:29.399 Yes, and I mean, I'm thinking deep to try and 0:17:29.400 --> 0:17:32.320 find his crypto resume, and I found that he appeared 0:17:32.320 --> 0:17:36.439 on influencer Logan Paul's podcast, and during the podcast, the 0:17:36.480 --> 0:17:40.480 two of them promoted a token called Omi, which I 0:17:40.480 --> 0:17:43.359 had also never heard of before since they promoted it 0:17:43.400 --> 0:17:46.199 a couple of years ago. Is down ninety six percent 0:17:47.200 --> 0:17:51.200 and another YouTuber, a scam busting YouTuber named coffee Zilla 0:17:51.480 --> 0:17:54.560 posted this expose that appeared to show the two of 0:17:54.600 --> 0:17:58.520 them coordinating ahead of the show their plan to talk 0:17:58.560 --> 0:17:59.160 about OMI. 0:18:00.480 --> 0:18:03.840 I mean, it seems that someone else listed in the 0:18:03.840 --> 0:18:07.520 white paper who's responsible as operations lead used to run 0:18:07.560 --> 0:18:11.240 a service called Date Hotter Girls, where he taught seminars 0:18:11.240 --> 0:18:13.760 on how to pick up women. All of this just 0:18:13.760 --> 0:18:18.720 feels like a real risk ultimately for the person who 0:18:18.760 --> 0:18:22.040 is running to be president of the United States again 0:18:22.440 --> 0:18:24.960 to be associating himself with Why do it? 0:18:26.680 --> 0:18:31.320 I mean, it's pretty bizarre, and the crypto industry, to 0:18:31.760 --> 0:18:33.920 the people I've spoke to from it, are not happy 0:18:33.960 --> 0:18:37.280 about it. They like that Trump has flip flopped and 0:18:37.320 --> 0:18:40.240 has endorsed crypto. He said that he's going to fire 0:18:40.280 --> 0:18:43.960 the head of the SEC and provide looser regulations that 0:18:44.040 --> 0:18:46.720 he says will make the US the crypto capital of 0:18:46.760 --> 0:18:49.440 the world. They're like, that all sounds great, but then 0:18:49.480 --> 0:18:53.520 why are you starting this pretty silly sounding new venture, 0:18:53.800 --> 0:18:57.560 a for profit venture just before the election. It almost 0:18:57.840 --> 0:19:04.560 discredits the I raises questions about his motivations for deregulating 0:19:05.040 --> 0:19:05.840 the industry. 0:19:06.600 --> 0:19:14.000 What has ultimately the world liberty financial spokespeople said to you, 0:19:14.080 --> 0:19:16.520 have you tried to get in touch, What have they 0:19:16.840 --> 0:19:20.720 said ultimately about the real underlying necessity of this project? 0:19:21.760 --> 0:19:24.560 So I did contact them, and I received an email 0:19:24.640 --> 0:19:27.680 back from a man who said he was not a spokesperson, 0:19:28.160 --> 0:19:31.360 but then he spoke for World Liberty and said that 0:19:31.840 --> 0:19:34.080 he could see where I was going with all these questions, 0:19:34.640 --> 0:19:38.320 and it was painting an inaccurate portrait of this company, 0:19:38.760 --> 0:19:41.879 and that time will tell that this is a serious 0:19:41.920 --> 0:19:44.840 project that's doing cool stuff. And Donald Trump has said 0:19:45.080 --> 0:19:48.000 he's going to unveil the details on Monday at eight 0:19:48.040 --> 0:19:51.560 pm on a Twitter spaces So I guess we'll see 0:19:51.880 --> 0:19:54.000 if what he says is consistent with the white paper. 0:19:54.119 --> 0:19:58.280 If they've they've made some changes, I'll certainly be listening 0:19:59.520 --> 0:19:59.919 whether or. 0:20:00.080 --> 0:20:03.119 Not it will indeed move away from the old banks, 0:20:03.280 --> 0:20:07.439 as former President Trump has discussed zep Fox. We might 0:20:07.480 --> 0:20:08.840 need to come back to you on Monday. Thank you 0:20:08.920 --> 0:20:10.680 so much, extraordinary peace. 0:20:10.920 --> 0:20:12.440 Meanwhile, some news. 0:20:12.080 --> 0:20:14.280 From a company that used to be associated with crypto 0:20:14.359 --> 0:20:16.240 much more in the AI world now core Weave. 0:20:16.440 --> 0:20:18.280 It's a cloud computing provider. 0:20:17.880 --> 0:20:21.560