'Bloomberg Technology' Full Show (04/17/2023)
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND GLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. >> I AM CAROLINE HYDE. ED: THIS IS BLOOMBERG TECHNOLOGY. >> ALPHABET SLUMPS AFTER REPORT THAT SAMSUNG HAS CONSIDERED PLACING GOOGLE WITH MICROSOFT TRUST BEING AS THE DEFAULT SEARCH -- ENGINE. ED: APPLE'S SALE IN INDIA WRAP UP. WE WILL -- >> #LOVE IS BLIND TURNS TO #LOVEISLATE.
LET'S CHECK IN WITH THE MARKETS. THE REALITY BITES OVER THE FACT THAT WE HAVE EARNINGS AND WE ARE LOOKING AT A STRONGER MANUFACTURING WEEK. THE GOOD NEWS AND -- NASDAQ OFF BY 4/10 OF A PERCENT. KEEP AN EYE ON THE BANK EARNINGS. WHERE WE SEE IN TERMS OF THE MOOD MUSIC ON DEPOSITS AND HOW MUCH CONCERN WE HAVE AMONG SMALLER LENDERS AND WHAT THAT MEANS FOR THE TECH INVESTING? THE TWO-YEAR GUILT BEING PUSHED HIRED INTERNS OF YIELDS -- TWO-YEAR YIELD BEING PUSHED HIGHER IN TERMS OF YIELDS. WE ARE GETTING A BIT OF THE WIND TAKING OUT OF SALES FOR CRYPTO.
WHAT A WEEK YOU HAVE HAD IN TERMS OF THEY EVOKE A STANDUP RATE THAT WAS SUCCESSFUL. MAYBE WE DOW BACK A LITTLE BIT IN TERMS OF MOOD MUSIC WITH RISK. WE ARE DOWN 3% AS THE DOLLAR RISES WITH THAT ECO-DATA BY GOING INTO -- BUT GOING TO THE MICRO. ED: THERE IS THE NEW YORK TIMES REPORTED THAT SAMSUNG IS CONSIDERING REPLACING GOOGLE SEARCH ON ITS INSTALLED PRECISE -- DEVICES TO MICROSOFT'S BING SEARCH. ALPHABET IS DOWN 3.5 PERCENT AND THAT PUTS IT ON TRACK SINCE
HIS -- FOR ITS BIGGEST DROP SINCE FEBRUARY. THE NEW YORK TIMES IS TALKING ABOUT THE POTENTIAL HIT TO REVENUE OF AROUND $3 BILLION FOR ALPHABET. A LOT OF DETAIL IN THE REPORT BUT THE MARKET PAYING ATTENTION.
>> WE SEE THE MONEY MOVE AND WE WANT TO GET TO THE NITTY-GRITTY OF MARK BERGEN, COVERING ALL THINGS TECHNOLOGY. MARK, WHEN YOU'RE TRYING TO ANALYZE IMPORTANT THESE NARRATIVES ARE COMING FROM THE NEW YORK TIMES REPORTING, IS IT REALISTIC THAT THIS CAN BE DOWN TO ARTIFICIAL INTELLIGENCE IN SOME WAY IN THE WAY THEY ARE WRAPPING THEM? MARK: THIS IS REALISTIC IN THE WAY THIS COMES DOWN TO COMPETITION. THE TIMES REPORT TALK ABOUT HOW THE SHOCKING TWO PEOPLE INSIDE GOOGLE, THIS IS SOMETHING THEY DID NOT EXPECT. THERE IS A LOT ON THE MOBILE WORLD, ANDROID PHONES ARE BUILT ON GOOGLE AND PACKAGED WITH GOOGLE SEARCH.
SAMSUNG HAS TRIED ITS OWN VERSION OF INTELLIGENT SERVICES AND THEY HAVE FAILED MISERABLY. APPLE HAS SEE/SIS -- SIRI BUT WAS STUCK WITH GOOGLE. ONE COMPANY IS GOING WITH BEING --BING. ED: ENGLE HAS MORE THAN 90% OF MARKET SHARE GLOBALLY ACROSS PLATFORMS BASED ON THIRD-PARTY DATA. THE QUESTION IS HOW WE'LL IS IT FOR SAMSUNG AND ITS 260 MILLION DEVICES SHIPPED LAST YEAR TO PIVOT TO COMPLETELY NEW PREFERRED SEARCH APP? MARK: THAT WILL BE UNPRECEDENTED IN SOME WAYS. YOU WILL HAVE SOME ADOPTION WITH CONSUMER, I IMAGINE SAMSUNG WILL TAKE THIS CAREFULLY. THEY WANT TO SELL MORE PHONES.
THEY DON'T WANT A WORLD WHERE THEY SHIFT -- SHIFT A DEVICE WITH BEING --BING AND THEY SELL FEWER PHONES. SAMSUNG IS THE BIGGEST HARDWARE PARTNER IN THE ANDROID WORLD AND THEY HAVE A WORKING WITH GOOGLE FOR A LONG TIME AND GOOGLE PROVIDES ANDROID FOR FREE WHICH IS NOT JUST SEARCH BUT THE PLAY STORE AND ALL THE SWEET OF APPS THAT MAKE THE ANDROID PHONE WORK. GOOGLE HAS HER OWN PICKLE PHONE -- THEIR OWN PIXEL PHONE AND THAT HAS STRUGGLED TO BECOME A SINK -- A SERIOUS CONTENDER. WE UNDERSTAND WHY GOOGLE HAS BEEN PLOWING BILLIONS OF DOLLARS INTO THAT FOR A SCENARIO LIKE THIS. CAROLINE:
THE IRONY IS THAT WE ALL ASSOCIATED THE WORLD OF ARTIFICIAL INTELLIGENCE WITH GOOGLE, THE FOCUS OF THE MIND -- THE WEIGHT IN WHICH THEY APPROACH LANGUAGE MODELS. WHAT DO YOU MAKE OF THAT PITCH TAKING TO THE AIRWAYS OVER THE WEEKEND AND HOW HE SPOKE TO PEOPLE FEELING THEY ARE BEHIND ON THE RACE? MARK: IT IS INTERESTING. GOING TO 60 MINUTES, TO MIDDLE AMERICA, TELLING THE WORLD THE MESSAGE THEY HAVE BEEN SAYING FOR YEARS.
WE ARE AHEAD ON AI AND THAT WAS CERTAINLY TRUE. WHAT CHATGPT DID AND I DON'T KNOW NECESSARILY IF THERE IS A LOT OF COMPARISONS ABOUT THE TECH PEOPLE PROGRESS BUT THEY CAME OUT WITH A CONSUMER APPLICATION PEOPLE CAN INTERACT WITH. EVERY START OF HIS TESTING OUT -- START UP IN THE WORLD IS TESTING OUT THE CHATGPT. DATE LOCKED INTO THIS MAGIC -- THEY LOCKED INTO THIS MAGIC, THAT GOOGLE, DESPITE A LEAD, HAS AN UNLOCKED.
GOOGLE HAS INVESTED SO MUCH IN THIS BUT YOU CANNOT COUNT THEM OUT. THE NARRATIVE AND TECHNOLOGY COMPANIES, EVERYONE WANTS TO TRY CHATGPT. ED: ANOTHER PART OF THE NEW YORK TIMES ARTICLE, CAROLINE, WAS THE IDEA THAT GOOGLE WILL BRING AI FUNCTIONALITY TO SEARCH AND GOOGLE ISSUED TO ME A COMMENT, BY THE WAY, WE HAVE BEEN USING AI IN GOOGLE SEARCH FOR YEARS. THEY BELIEVE THEY HAVE DONE SO IN A SAFE AND RESPONSIBLE WAY. GOING BACK TO THE IDEA, WE HAVE BEEN AT THAT FOR A WHILE. CAROLINE:
APPLE IS SAYING THE SAME THING. ED: BLOOMBERG'S MARK BERGEN AND 11 -- IN LONDON. LET'S BRING IN SOMEONE FROM ROCK CAPITAL PARTNERS. I SHARES DOWN THE MOST -- ALPHABET SHARES DOWN SINCE THE MOST -- SINCE EARLY FEBRUARY. WHEN YOU THINK ABOUT BING GETTING TRACKING -- WHAT DO YOU THINK ABOUT BING GETTING TRACTION? >> THERE IS A SERIOUS COMPETITOR TO SEARCH.
THAT IS WHAT MARK IS TELLING YOU. FOR THE LAST 15 YEARS, WE HAVEN'T HAD A REAL COMPETITOR. PEOPLE HAD A A WHILE AND YAHOO! IN -- AND BING. FACEBOOK TRIED TO SEARCH. EVERYONE HAS TRIED AND IT HASN'T BUDGED GOOGLE.
PEOPLE ARE NOW QUESTIONING THAT. IS THIS A SENTIMENT IN CONSUMPTION IF OR IS THIS A REAL FUNDAMENTAL ISSUE? RIGHT NOW, IT IS A SET -- SENTIMENT ISSUE. ED: WE CAN GO BACK TO THE 30 -- THIRD-PARTY DATA.
GOOGLE IS 90% OF THE SEARCH MARKET GLOBALLY. CAROLINE: THERE WERE ACCUSATIONS THAT IF GOOGLE WASN'T SO MONOPOLISTIC IN ITS POWER, PERHAPS WE COULD SEE FURTHER INTEGRATION IN CHATGPT. SPEAK TO THAT. SPEAK TO THE CEOS MAKING ARGUMENT, THAT THEY HAVE BEEN A TRUSTED ARBITER OF THIS RE-SCALING GENERATIONAL SHIFT IN TECHNOLOGY AND MAYBE THE PACE IS NOT QUITE CONTROLLED BY OTHER COMPETITORS? ROHIT: AND GOOGLE, WE TRUST. THEY HAVE THE DATA AND THE CONSUMER BEHAVIOR AND THEY HAVE ON THAT OVER THE YEARS AND THEY HAVE GONE THROUGH APPLICATIONS IN MOBILE AND DESKTOP. GOOGLE WILL COME OUT OF THIS UNHARMED OR STRONGER. CHATGPT PROPOSES AN ISSUE AND TO HELP GOOGLE SEARCH WILL EVOLVE OVER THE NEXT SIX MONTHS. WHETHER GOOGLE WILL BEHEAD --
BE AHEAD OF THE CURVE, THAT WOULD DICTATE THE STOCK PRICE. THAT MAKES IT A LITTLE BIT HARDER FOR GOOGLE MANAGEMENT TO BE AGGRESSIVE AND I FEEL THEY NEED TO STEP IN FRONT COME OUT WITH MORE AGGRESSIVE PRODUCT LAUNCHES AND OPEN UP THEIR AI KIMONO, IF YOU WILL. ED: YOU HAVE $108.87 CENTS TARGET ON GOOGLE.
HOW MUCH DO YOU SEE IS THE POTENTIAL THAT BARD BRINGS? ROHIT: THE PRICE TARGET IS $126. ED: I APOLOGIZE. ROHIT: ALL GOOD. THIS IS ONE OF THE EXPERIMENTS THAT WE WILL SEE FROM GOOGLE. WE HAVE BEEN DOING AI RESEARCH, AND EVERYTHING THAT THE INDUSTRY THAT HAS BEEN TALKING ABOUT FOR THE LAST DECADE.
CHATGPT IS BASED ON TECHNOLOGY CREATED BY GOOGLE EIGHT YEARS AGO. GOOGLE HAS BEEN THE FOUNDATION OF GLOBAL AI RESEARCH FOR MANY YEARS AND I THINK THAT IS WHERE WE WILL SEE MORE EXPERIMENTS AND MORE CONSUMER USE CASES UNLOCK. I THINK GOOGLE NEEDS TO STEP THEIR GAME UP. ED: OK COME CONNIE --ROHIT KULKAMI. CAROLINE: LET'S STICK WITH AI. APPLYING CHAPPY -- CHATGPT TO FINANCE IS ARRIVING TO -- ARRIVING. TWO NEW PAPERS -- ONE DECIPHERING WHETHER THE FEDERAL RESERVE STATEMENTS ARE HAWKISH OR DOVISH, WHETHER THE -- THEY ARE PRO-INTEREST RATE CUTS ARE AGAINST HIM AND ANOTHER DETERMINING WHETHER THE HEADLINES ARE GOOD FOR STOCKS.
OPEN AI ACED BOTH TESTS WITH CHATGPT ANY COSTS -- AND IT CAUSES -- THIS IS ABOUT DEMOCRATIZATION. ED: MY MIND GOES BACK TO THE STORY ABOUT WALL STREET HIRING TALENT FROM THE TECHNOLOGY SECTOR, PEOPLE THAT CAN INTERPRET THE DATA. CAROLINE: THE POINT BEING WHETHER OR NOT YOU CAN TRADE ON THESE NUMBERS, WHETHER IT MEANS IT HAS TO BE OWNED BY CERTAIN HEALTHY -- WEALTHY HEDGE FUNDS AND TEAMS THAT HAVE THE POWER, THE MONEY TO HIRE SUCH EXPENSIVE TALENT FROM THE TECHNOLOGY ROAD. OR WHETHER PEOPLE CAN TURN TO THESE PLUG-INS TO COST SAFE.
--SAVE. ED: WHEN YOU HAVE OFFICIALS TALKING ABOUT AI, AND IT TENDS TO GIVE THEM A MOMENTUM THAT WE WILL STICK WITH ON UBER TECHNOLOGY. BLOOMBERG -- COPY ONE OF ITS BIGGER PRODUCT LAUNCH EVENT EVER. TAKE A LOOK AT THE SHARES, WE ARE SOFTER BY JUST A FEW TENTHS. A HALF OF A PERCENT. BLOOMBERG REPORTING INDIA SAYERS -- SALES REPORTING $6 BILLION.
NOT DOING MUCH TO SUPPORT STOP, OUTPACING THE S&P 500 BY SOME DISTANCE. WE WILL HAVE DETAILS. ED: LET'S GET TO APPLE. SHARES OF THE APP ---MAKER DOWN HALF OF A PERCENT.
SALES OF INDIA REACHED $6 BILLION THROUGH THE 12 MONTH. -- 12 MONTH PERIOD IN MARCH. WE ARE LEARNING MORE ABOUT THIS MARKET. INDIA, IN TERMS OF SALES AND THE SUPPLY CHAIN STORY. LET'S LOOK AT THE BREAKDOWN OF APPLE SALES. INDIA IS NOT TECHNICALLY BROKEN
OUT. BLOOMBERG REPORTING IT IS LUMPED IN WITH THE REST OF ASIA PACIFIC, WHICH IS 7% SALES OF THE FULL YEAR 2022 BUT IT SEEMS LIKE WE ARE GOING TRACTION MARKET, THE HIGH PRICE POINTS HAVE BEEN A DIFFICULT ONE FOR APPLE TO TRACK -- CRACK. TIM COOK IS IN THE COUNTRY. CAROLINE: IT IS ALL ABOUT THE GROWING CLASS WILLING TO SPEND. BLOOMBERG'S ALEX WEBB CALLING IN. WE HAVE SO MUCH TO GO THROUGH WITH APPLE BUT THE INDIA FOCUS, THE FACT THAT THEY ARE ABLE TO NOT ONLY DO SURVIVE BUT SEE THE DEMAND.
>> THERE ARE TWO PIECES TO THIS. TRYING TO PULL A LITTLE BIT OUT OF CHINA AND IT IS REALLY A LITTLE BIT COESTER LANDED -- LITTLE BIT. IN REVENUE, THEY GENERATED PRODUCTS MADE THERE, $6 BILLION IS WHAT THEY ARE DOING IN SALES. WHEN THEY TALK ABOUT INDIA, THEY SAY IT WAS 10 YEARS IN CHINA. 10 YEARS, APPLE WAS -- AND HAS A LONG WAY TO GO TO GET WHAT IS NOW IN EXCESS OF $70 BILLION IN CHINA BUT IS MAKING TRACTION.
THAT PRICE SENSITIVITY IS A MASSIVE DEAL. IT WILL TAKE A LONG TIME FOR THEM TO TAKE A MEANINGFUL CHUNK OUT OF UNIT SALES SAMSUNG DOES. ED: BLOOMBERG REPORTED THAT TIM COOK WILL ATTEND THE OPENING OF BOTH THE MUMBAI AND NEW DELHI STORES. WE ARE WAITING FOR JUNE AND EEC D. --WWDC. THIS IS SUPPOSED TO BE THE BIGGEST WWDC EVER.
WHAT ARE WE EXPECTING? ALEX: WE ARE GOING TO BE SEEING THIS NEW HEADSET, ACCORDING TO OUR COLLEAGUE'S REPORTING. THIS IS FOR DEVELOPERS AND THERE WILL BE A BIG EMPHASIS OF WHAT IS LIKELY TO BE CALLED SROX. THERE IS GOING TO BE A HUGE EFFORT TO SHOW DEVELOPERS WHAT THEY CAN DO, AND CRUCIALLY, WHY IT WILL BE WORTH THEIR WHILE DEVELOPING FOR THIS PLATFORM. DEVELOPERS ARE APPLE'S EDGE WHEN IT COMES TO PART -- PRODUCTS. FACEBOOK AND META HAVE STRUGGLED. IF APPLICANT CONVINCED ITS DEVELOPERS TO MAKE GOOD APPS, IT CAN GIVE ITS HEADSET A CHANCE TO COMPETE. ED: HOW MUCH DEMAND IS THERE FOR
HIGH END REALITY HEADSETS AND HOW MUCH EMPHASIS DO THEY WANT TO PUT ON HEALTH WHEN IT COMES TO WATCH -- SMART WATCHES? CAROLINE: THEY ARE UPDATING THE OPERATING SYSTEMS OF SOME ORIGINAL PRODUCTS. WE ALSO HAVE NEW MAC PRODUCTS. WHAT CAN WE EXPECT? ALEX: WE WILL SEE NEW MACBOOKS BUT THEY WILL BE UPDATING THE FULL RANGE OF SOFTWARE. TV OS, MAC OS, IOS, WATCH OS, ALL OF THESE THINGS COMING. WE WILL SEE APPLE'S SELF DESIGNED CHIPS GOING INTO THE MACBOOK PRO RANGE. WE WILL -- ALL OF THOSE THINGS WILL FADE INTO INSIGNIFICANCE GIVEN PIACENZA GOING INTO THE NEW HEADSETS FOR THEIR ROLE BE LOTS OF FUN TOOLS FOR DEVELOPERS -- LOTS -- LOTS OF FUN TOOLS FOR DEVELOPERS. ED:
COMING UP, THE HIGHLY ANTICIPATED SPACEX STARTED -- STARSHIP HAS BEEN PUT ON HOLD. CAROLINE: LET'S TAKE A BEAT AS WE LOOK AT INCREDIBLE SHOTS OF WHAT COULD HAVE BEEN TODAY, AS WHAT IS GOING ON IN THE MARKET. WE HAD STRONG DATA COMING OUT OF NEW YORK THAT HIT SENTIMENT. GOOD NEWS FOR TECH STOCKS ATTENTIVE ARE PRESENT.
IN A COMMENT ON WHERE YOU SHOULD PUT -- AND A COMMENT ON WHERE YOU SHOULD PUT STOP -- >> DIFFERENT TECHNOLOGY COMPANIES CAROLINE: IT IS TIME FOR TALKING TECH. YUAN MUST -- ELON MUSK HAS INCORPORATED A NEW TECHNOLOGY. SOME ARE SPECULATING THESE EFFORTS COULD BE PART OF A LARGER PROJECT TO ROUTE THE LIKES OF COMPANIES LIKE OPEN AI, WHICH ELON MUSK HELPED FOUND AND NOW HAS CRITICIZED. SPACEX HAS POSTPONED ITS LAUNCH OF THE MASSIVE STARSHIP ROCKET THAT WAS SENT TO LIFT OFF EARLIER TODAY.
THE COMPANY AND CEO CONFIRMED THERE WAS A PRESSURIZATION ISSUE MINUTES BEFORE THE WATCH. --LAUNCH. ED: WE KNOW WHY THERE WAS A PAUSE, DELAY, A SCRUB. WILL WE SEE STARSHIP WATCH THIS WEEK? >> THAT IS VARIABLE AND THIS IS THE NAME OF THE GAME WHEN IT COMES TO COVERING WALK -- ROCKETS LIKE THE FIRST LAUNCH OF A BRAND-NEW ROCKET LIKE STARSHIP, THERE ARE GOING TO BE SCRUBS. IF IT HAD GONE ON TODAY, I WOULD HAVE BEEN SHOCKED BECAUSE THAT IS HOW THINGS GO WHEN YOU TEST A NEW ROCKET. WILL WE SEE IT GO?
I HOPE SO BECAUSE I STAY IN SOUTH PROJECT -- PATRICK. -- I AM STUCK IN SOUTH PADRE. CAROLINE: ELON MUSK HAS PUT POSITIVE SPIN ON IT BUT IT MIGHT ALIGN WITH ONE OF HIS FAVORITE DAYS. LOREN: THERE IS A POSSIBILITY THAT WE COULD LAUNCH ON APRIL 20. THERE ARE CERTAIN THINGS
ASSOCIATED WITH THE DATE THAT I THINK IT WOULD PLEASE ELON MUSK IF WE DID LAUNCH. ED: THIS IS GIVEN IF YOU GET -- THIS IS SIGNIFICANT. STARSHIP, -- THIS IS A MILESTONE, NOT JUST FOR THE INDUSTRY BUT FOR MANKIND. WHY IS IT A MILESTONE? ALEX:
THE REASON --LOREN: THE REASON THAT ELON MUSK FOUNDED SPACEX TO BEGIN WITH WAS TO START WITH A -- HAVE A HUMAN SETTLEMENT ON MARS STOP THIS IS THE VEHICLE THAT THEY WILL USE TO SEND PEOPLE TO DEEP SPACE. THE ONLY WAY THEY CAN MAKE THAT DREAM A REALITY IS IF THEY CAN PROVE STARSHIP CAN LAUNCH TO SPACE SO THERE IS A LONG ROAD HE HAD BEFORE ANYONE IS TAKING ANY STEPS IN ANY OTHER WATCHES BEFORE STARSHIP BUT HE HAS TO SHOW IT CAN REACH SPACE AND GET TO ORBIT BEFORE WE HAVE A CHANCE OF SEEING THIS DREAM BECOME A RILEY --REALITY. CAROLINE: IF IT DOES HAPPEN, WHAT DO WE EXPECT TO HAPPEN? LOREN: FROM THIS LAUNCH IN GENERAL? JON: --CAROLINE: YES. ALEX: --LOREN: THIS IS BASIC. IT CAN ACTUALLY FLY. THE TWO PIECES CAN SEPARATE WHAT IS CALLED STAGE SEPARATION. STARSHIP CAN GET TO NEAR ORBITAL SPEEDS. IT WILL BE COMING OFF THE COAST
OF HAWAII BUT IT WILL BE GETTING CLOSE TO ORBIT AND ORBITAL SPEEDS AND IT WILL BE GETTING TO SPACE. THOSE ARE THE MAIN THINGS. CAN IT SURVIVE MAXQ, WHERE IS -- IT IS THE POINT WHERE THERE ARE A LOT OF PRESSURES ON THE ROCKET. CAN THAT STAGE SEPARATION HAPPEN AND CAN IT REACH SPACE? LOREN: --CAROLINE: WE APPRECIATE YOU BRINGING THE TIME. LOREN GRUSH ALL THINGS SPACE. BITCOIN IS DIPPING BELOW 30,000. WE WILL TALK ABOUT MY -- FIVE. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE. ED: I AM ED LUDLOW.
LES TAKE A LOOK AT THE MARKETS. THE NASDAQ 100 SOCCER BY 7/10 OF 1% -- SOFTER BY 7/10 OF 1%. I'M CONSCIOUS THAT WE WILL HAVE A FEW DAYS LEFT TO GO IN A DEBATE ABOUT -- AND THE DEBATE ABOUT WHAT THE FED WILL DO IS HEAVY.
YOU SEE THE GOLDEN DRAGON INDEX OF 2.8% AND A BIG PART OF THAT, THE EBU -- EV NEWS OUT OF THAT MARKET. THE 10-YEAR PUSHING HIGHER. AS YOU PUT IT, WE ARE SEEING THE WIND OUT OF THE SAILS OF CRYPTO.
I AM LOOKING AT BITCOIN AS AN EXAMPLE, SOFTER. BITCOIN OFF BY 3% AND BACK BELOW 30,000 U.S. DOLLARS. THE TOKEN IS A MIXED DEBATE. A LOT OF LONG-TERM BALLS AND MOMENTUM IN THE NEAR TERM IN MACRO CONDITIONS.
WE -- THERE IS FEEL-GOOD ABOUT THE UNDERLYING TECHNOLOGY. CAROLINE: AND SOME -- IN THE BANKING SECTOR AND THE FINANCIAL CONDITIONS. LET'S TAKE IN TO THE PUSHES AND PULLS. WE HAVE THE COFOUNDER AND CO-CEO OF FRACTAL. IT ANNOUNCED A $6 MILLION SEED RACE. THE RATS. -- CONGRATS. WE ARE WEAKER ON THE DAY BUT LOOK AT THE RUN IN BITCOIN, 18% YOUR TODAY.
ARE WE SEEING NOW ONLY RETAIL BUT MAYBE INSTITUTIONAL INVESTMENT COMPANIES COMING BACK? -- CONFIDENCE COMING BACK? >> WE HAD AN UPDATE THAT ALLOWED FOR TWO DIFFERENT THINGS, TO FINALLY MOVE TO PROOF OF WORTH FROM PROOF OF STATE AND FOR A AND TO UNSTICK ITSELF AND MEET LIQUIDITY -- AND CREATE LIQUIDITY. FOR EXAMPLE, THE FIRST PIECE IS INTERESTING. IF YOU LOOK AT WHAT HAPPENED WITH INSTITUTIONAL INVESTORS IN THE LAST UPDATE, YOU SAW INSTITUTIONAL INVESTORS WERE BUYING THE RUMOR AND SELLING THE NEWS. THE PRICE OF GRAIN UP. IT DROPPED AFTERWARDS. WHAT YOU SAW IS STOP -- OPPOSITE . ON APRIL 12, THEY HAD A CLOSE THE SHORT END BY THE UNDERLYING ASSET AND THAT LED INTO THE MOMENTUM OF THE PRICE UP.
THE SECOND IS THE LATENT DEMAND. IT WAS LOOKING TO SEE WHETHER OR NOT THERE WILL BE WHICH IS IN BE UPDATED -- -- THERE WILL BE GLITCHES IN THE UPDATE. IT TURNS OUT USERS, THERE ARE CRYPTO NATIVES BUT THERE IS THE LAST PIECE WHERE THERE WAS A LOT OF NEGATIVE SENTIMENT AROUND HUGE SALE PRESSURE ONCE YOU COULD UNSTAKE BE A THEORY HIM. LAST -- THE MAJORITY IS THE REWARDS THAT HAVE BEEN EARNED SINCE ETHEREUM WAS STAKED. IT IS POSITIVE AND ON FRIDAY,
YOU COULD SOLVE OR THAT WAS STAKED BAND RETURN -- THEN WITHDRAWN. CAROLINE: YOUR POINT OF INSTITUTIONS OR CRYPTO PLAYERS NEGATIVE, WANTING TO SHORT OR PERHAPS USE DERIVATIVES TO PREPARE FOR THE UPGRADE, WHAT IS LIQUIDITY LIKE IN THE VACUUM FOR DERIVATIVES POST FTX? AYA: THE HONEST ANSWER IS THE LIQUIDITY IS DRIER AND THAT LEADS TO WHAT YOU SEE MOMENTUM DRIVEN EVENTS HAPPEN BECAUSE THERE IS LESS LIQUIDITY IN THE MARKET AND WHAT WILL HAPPEN IS TWO YEARS AGO, WE SAW THE PENDULUM SWING WHERE MARKETS USED TO BE DRIVEN BY ASIA-BASED INVESTORS AND THAT USED -- MOVE TO U.S.-BASED INVESTORS AND WE ARE SEEING THE OFFICE IT. MARKETS ARE BEING DRIVEN BY ASIA-BASED INVESTORS AND ASIA-BASED EXCHANGES. YOU WILL LIKELY SEE THAT HAPPEN INTO THE -- UNTIL THE ENGINE SWING TO THE U.S.. ED: TRACKING THE MOMENTUM IS ONE DATA SET BUT WHAT CAUGHT MY EYE IS THE FLOWS OF MONEY INTO VARIOUS PRODUCTS TYPE TWO CRYPTO.
-- ROCKS TIED TO CRYPTO. WHAT IS LEADING THE MARKET TO PUT MONEY INTO THESE INSTRUMENTS? AYA: ON MARCH 10 WHEN SVB FILED FOR BANKRUPTCY, BITCOINS PRICE WAS UP OVER 50% AND IT FOCUSED IN AND REITERATED THE REASON FOR BITCOIN AND THE NARRATIVE BEING A SAFE HAVEN. WHEN BITCOIN WAS CREATED IN 2009 FOLLOWING THE 2008 FINANCIAL CRISIS. THERE IS ALWAYS A DELAYED REACTION OF MONEY MOVING INTO INVESTOR -- INVESTMENT PRODUCTS GLOBALLY, BUT WILL LIKELY SEE THAT HAPPEN THROUGH YEAR END. CAROLINE: AS YOU, ON COMING OFF A SEED ROUND, AND AN INFRASTRUCTURE -- PEOPLE WANT A DIFFERENT KIND OF TRANSPARENCY POST FTX BOOK YOU WERE BASED IN SWITZERLAND AND YOU ARE NOW BETWEEN YOU ARE IN SWITZERLAND.
WHAT ABOUT THE REGULATORY ENVIRONMENT? YOU ARE SAYING THAT THE FLOWS THAT WERE COMING ARE DONE OUT OF ASIA. AYA: I WOULD SAY YES AND NO. SPECIFICALLY, THE JURISDICTIONS WE ARE EXCITED ABOUT, SWITZERLAND AND SINGAPORE AND HONG KONG, IN THE U.S. WE ARE EXCITED ABOUT U.S. REGULARS TO MOVE FROM REGULATION THROUGH ENFORCEMENT TO REGULATION THROUGH COLLABORATION. EVEN IF YOU LOOK AT LAST FRIDAY WITH THE STABLECOIN ACT, THAT WAS A BIPARTISAN AGREEMENT WITH EVERY INFLUENCE FROM CIRCLE SO IT IS EXCITING TO SEE THOSE THINGS COME INTO PLAY AND THAT IS SOMETHING WE WILL KEEP AN EYE OUT FOR. TWO FRACTAL, WE DON'T FALL
UNDER THE D5 OR --DEFY DEFINITION. WE ARE FOCUSING ON THE BLOCK CHAIN. CAROLINE: WE HAVE TALKED A LOT ABOUT BITCOIN RUN-UP SPENT MANY POINTED TO SOME OF THE OLD COINS NOT BEING CAUGHT UP IN THE RALLY AND SOME SAYING EVEN THE DECENTRALIZED EXCHANGES DONE PHENOMENALLY WELL IN A VALLEY, MAYBE SOME OF THE TOKENS HAVE BEEN DONE AS WELL AS EXPECTED? ED: HAD THE MOMENTUM -- WE HAD THE MOMENTUM THAT IS IN THEIR OR IS THERE IN BACKING THE UNDERLYING TECHNOLOGY. YOU ARE A FOUNDER IN YOUR BUSINESS. HOW DO YOU VIEW THE ABILITY TO RAISE FUNDS COMPARED TO YOUR PEERS? AYA: I WILL SPECIFY A LOT OF THESE TOKENS ARE UTILITY TOKEN SO IT IS REFLECTIVE OF THE USAGE OF THE APPLICATION. YOU'RE NOT ALWAYS SEEING THAT ONE TO ONE.
FRACK -- FRACTAL DOESN'T HAVE A TOKEN AND WE DON'T INTEND TO. WE WERE ABLE TO CLOSE AROUND THREE WEEKS WITH A TERM SHEET GIVEN AFTER A WEEK AFTER FTX CLAPS SO STRONG MOMENTUM. -- COLLAPSED SO STRONG MOMENTUM THERE AND YOU ARE SEEING FOUNDERS WHO HAVE BEEN IN CRYPTO AND ARE TO KEEP THEIR HEADS DOWN. ED: AYA KANTOROVICH, THANK YOU SO MUCH. IT IS EARTHQUAKE AND WE ARE LOOKING AT INNOVATIVE WAYS THAT TECHNOLOGY IS BEING MORE EFFICIENT. EV MAKERS ARE FINDING NEW WAYS TO BUILD SLEEKER AND MORE COST-EFFECTIVE SYSTEMS THAT UTILIZE THE POWER OF THE SUN.
BLOOMBERG GREEN HAS THE STORY. >> ARE SOLAR CARS THE NEXT EV EVOLUTION? DECADES OF WORK ON A SOLAR CARTON SHOP IS SLOWING, SEATING --CEDEING TO A MORE CHROMATIC APPROACH, SMALLER SYSTEMS TO AUGMENT DRIVING. THE SUN IS HARD TO IGNORE AS IT NEVER STOPS SHOWING UP IN WITH THE MARKET RIFE WITH ELECTRIC VEHICLES, THERE IS AN AUTO ECOSYSTEM INCREASINGLY WIRED FOR ELECTRONS, THEIR OWN CARS' SOLAR SYSTEMS WOULD NO LONGER HAVE TO DO THE HEAVY LIFTING. SOLAR PANELS HAVE BECOME MORE CHEAPER AND MORE EFFICIENT. OVER THE PAST DECADE, THE PRICE OF SOLAR MODULES PER WATT UP POWER PRODUCED PLUNGED BY 80% TO $.24 PER WATT. I PANEL ARRAY THE SIZE OF A
SEDAN HAS DROPPED FROM $222 $250 --TO $50. AT HYUNDAI, A SOLAR ROOF OPTION IS AVAILABLE FOR THE SONATA SEDAN AND THE COMPANY IS DRAWING PLANS TO ADD SOLAR PANELS TO THE IONIC 5.\ WHAT ABOUT TESLA? ELON MUSK HE STATED HE BELIEVES THE CAR IS ONE OF THE LEAST EFFICIENT BASIS -- PLACES TO PUT SOLAR.
THEY ARE PURSUING AN OPTION TO ADD SOLAR TO SEMITRUCKS -- CYBER TRUCK. ED: THE SUN IS HARD TO IGNORE. WE WILL TALK ABOUT THE IMPACT OF AI AND HOW PEOPLE ARE THINKING ABOUT THAT WITH IVP PARTNER SOMESH DASH. THAT'S NEXT. THIS IS BLOOMBERG.
CAROLINE: TIME FOR OUR VC ROUNDUP, A STARTUP CLOSED A $175 MILLION CLOSING ROUND. IT LOOKS TO SHIFT AWAY FROM MEALWORMS TO FISH. BERLIN-BASED RAZOR GROUP HAS RAISED $88 MILLION TO RAISING ITS VALUATION TO $1.2 BILLION. IT ACQUIRED ITS COMPETITOR.
LET'S GET TO WHAT ELSE WE ARE HEARING FROM OUR VC GUESTS. >> I RECOGNIZE IT IS A TRICKY ENVIRONMENT, NOT ONE I RECOMMEND. ONE OUT THERE. -- RECOMMEND FOLKS TO RUN OUT THERE. >> YOU DON'T NEED THE SAME AMOUNT OF Q NEEDED.
-- AMOUNTS OF CAPITAL YOU NEED. WE ARE SEEING NEW TO CHANGE THE INDUSTRIES. >> IT WAS WET THREE AND EVERYTHING AND THAT HAS SHIFTED TO AI.
>> AI HAS MADE THE BUSINESS OF THREAT DETECTION INCIDENT RESPONSE MORE AUTOMATED. >> WE ARE SEEING A LOT OF GREEN SHOOTS. ED: LET'S BRING IN TODAY'S GUEST, INVESTING OPPORTUNITIES AND BC. SOMESH DASH IS A GENERAL PARTNER AT IVP. AI IS TOP OF MIND OF YOUR PEERS. IS A TOP OF MIND FOR YOU? --IS IT TOP OF MIND FOR YOU? SOMESH: ABSOLUTELY.
WE WILL SEE FROM INTERNET TO MOBILE TO AI THE KINDS OF TRANSFORMATIONAL SHIFT THAT HAPPENED ONCE IN A GENERATION. WE ARE SEEING IT PLAY OUT IN REAL TIME. IF YOU THINK ABOUT THE NEWS FROM SAMSUNG, THINK ABOUT THE DOLLARS AT STAKE BUT THE DOMINANCE OF SEARCH AS IT RELATES TO AI, $3 BILLION FOR SAMSUNG, AND THE BIG FISH IS COMING UP WITH APPLE AND GOOGLE. THAT IS $18 TO $20 BILLION A YEAR. IF APPLE AND MICROSOFT STARTS
PARTNERING TOGETHER, THAT IS A $2.6 TRILLION COMPANY. THIS WILL BE THE FUTURE OF THE NEXT DECADE. CAROLINE: I'LL TELL YOU WHERE IT FEELS LIKE THE FUTURE, REGULATING IT. OUT OF EUROPE, MANY THOUGHT THEY WOULD LOOK AT HIGH RISK AI APPLICATIONS WHEN THEY WERE CRAFTING REGULATION AND NOW LOOKING -- PEOPLE ARE LOOKING ITS AGO TO GENERAL-PURPOSE.
WHAT YOU THINKING -- WHAT YOU -- WHAT ARE YOU THINKING ABOUT THE REGULATORY LANDSCAPE. SOMESH: WE NEED REGULATIONS TO MAKE SURE THE APPLICATION OF AI IS USED FOR GOOD. I AM A HUGE FAN OF MAKING GOVERNMENT AUTHORITIES WERE CLOSELY LOOK -- WORKED CLOSELY WITH THE INDUSTRY. IT IS IMPORTANT FOR THINKING OF NEW REGULATORY BODIES THAT CAN ENFORCE THIS IN A WAY THAT IS DIFFERENT FROM TRADITIONAL INTERNET AND SOFTWARE ENFORCEMENT. THE REAL QUESTION WILL BE, DOES THIS SPUR A NEW GENERATION OF ACQUISITIONS AND STARTUPS OR DOES IT SLOW IT DOWN? JON: --CAROLINE: REALLY, THE AMOUNT OF PITCHES WE GET FROM FOUNDERS AND VCS MONEY -- WANTING TO TALK ABOUT THIS IS PHENOMENAL. ED: EVERY SINGLE PERSON IS WORKING
IN AI. HOW DO YOU PLAY THE FIELD? , RIGHT IN ALL RIGHT INSANE YOU GET DOZENS OF PITCHED DESKS -- AM I RIGHT IN SAYING THAT YOU GET DOZENS OF PITCHED DESKS? SOMESH: THESE ARE EARLY INNINGS. WE ARE SEEING THE FIRST SET OF COPIES COMING OUT. IT REMINDS ME OF GEOCITIES. WE HAVEN'T SEEN THE GOAL EQUIVALENT BUT THE DIFFERENCE IS THE PACE. CHATGPT HAD 100 MILLION USERS
ANY TWO MONTHS AND IT TOOK FACEBOOK FOR YEARS AND INSTAGRAM TWO YEARS TO GET TO 100 MILLION USERS. GPT 4 FEELS LIKE OLD NEWS. WHAT WE WILL SEE IS SOME OF THESE APPLICATIONS, THERE IS A MODEL THAT CAP PPG -- THAT CHATGPT CAN DO, FOUR USERS. ED: ANOTHER BID HEADLINE -- BIG HEADLINE IS PENTAGON AND LEAKS.
THIS COURT HAD A ROLE TO PLAY AND I BELIEVE YOU ARE AN INVESTOR IN THIS COURT STOP SOMESH: WE ARE. ED: WHAT YOU MAKE OF THAT STORY? -- WHAT DO YOU MAKE OF THAT STORY? VC IS PUTTING A LOT OF MONEY IN DEFENSE-RELATED STARTUPS BUT IN THIS CASE, SOCIAL MEDIA PLATFORMS. THIS COURT, THE HEART -- DISCORD, THE HEART OF THE STORY. SOMESH: THIS IS A HORRIBLE STORY. THE MEMBER OF THE U.S. MILITARY TOOK CLASSIFIED DOCUMENTS AND SHARED IT AT A PRIVATE SERVER.
THEY VALIDATE TWO THINGS, THEY SHARED THE LEGAL, CLASSIFIED DOCUMENTATION. THEY BROKE THE LAW AND THEY VIOLATED DISCORD'S TERMS OF SERVICE. WHEN DISCORD TO TEST IT -- DISCORD TO TESTING THIS, THEY WORKED WITH AUTHORITIES AND OUR -- A ARREST WAS MADE. IT SHOWS THE IMPORTANCE OF PLATFORMS TO UTILIZE LARGER TRUSTED SAFETY DEEDS -- TEAMS. AI CAN REPLACE HUMAN CORRECTION AND ENFORCE JUST KEYBOARDS AND TRIGGERS BUT CONTEXT, WHERE IN THE FUTURE, NOT JUST WORDS BUT IMAGES CAN BE FLAGGED FASTER AND IT CAN PREVENT THIS SORT OF ABUSE FROM HAPPENING. CAROLINE:
WHEN YOU THINK ABOUT THIS COURT, IT WAS ONE OF THOSE COMPANIES THAT WE EXPECTED TO EXIT. YOU TALK ABOUT M&A, BUT WHAT ABOUT OTHER GROUPS LIKE DISCORD? SOMESH: FOR A LOT OF PRIVATE COMPANIES, THIS IS A PERIOD OF INVESTING IN THE FUTURE. I -- AI PREVENTS AN OPPORTUNITY TO RETHINK YOUR BUSINESS.
DISCORD HAS WORKED -- CLOSELY -- YOU THINK ABOUT THE BIGGEST COMMUNITIES, MID JOURNEY, BOTH ARE ON DISCORD AND IF YOU THINK ABOUT THE PRODUCTS DISCORD HAS INTRODUCED, THE MOST EXCITING IS ONE RECENTLY BACK CREATES A SUMMARY TOOL THAT SUMMARIZES ALL THE SERVERS OF THE USER SO IF YOU HAVE LEFT A FORM AND YOU WANT TO COME BACK AND GET A QUICK AND FAST SUMMARY, YOU HAVE AI AS A TOOL TO DO THAT. MY OWN SENSE IS THAT MANY COMPANIES ARE BEING STRONGER, NOT WEAKER, BECAUSE THEY ARE INVESTING IN AN EVENTUAL -- IN INTELLECTUAL PROPERTY AND THESE WILL BE BIG OUTCOMES FOR SOLO -- SILICON VALLEY. ED: THANK YOU FOR JOINING US. CAROLINE: COMING UP, SO MUCH MORE TO DISCUSS AND PLATFORMS WITH NETFLIX, HOW IT FAILED TO GO LIVE FOR A SPECIAL EPISODE FOR ONE OF HIS MOST POPULAR -- FROM ITS MORE -- MOST POPULAR SHOWS.
LET'S LOOK AT NETFLIX SHARES JUST AFTER THAT DISAPPOINTMENT, IT SEEMS TO HAVE IMPACTED THE MARKET CAPITAL SHARED BY 2%. >> DON'T TURN THE CHANNEL. DON'T STREAM SOMETHING ELSE. DON'T GO TO THE BATHROOM. WE ARE COMING FOR YOU. SHOW THEM WHAT YOU GOT. [LAUGHTER] -- [APPLAUSE] >> NICK AND VANESSA LIZ CHENEY TRYING TO REASSURE VIEWERS THAT LOVE APPEARED TO BE LATE. THE SPECIAL WAS DELAYED BY OVER AN HOUR TO A FRENZY OF COMPLAINTS.
THIS IS NETFLIX'S FIRST STREAMING EVENT WHERE IT ALLOWED -- THIS WAS A BIT OF A FAILURE FOR NETFLIX' INTEGRATION TO LIVESTREAM EVENTS. >> THEY MADE A DEAL ABOUT THEY WILL DO LIVE EVENTS. THIS IS PART OF THEIR BIG DEAL OF ADVERTISING AND THEY DIP THEIR TOES INTO IT. THIS IS THEIR SECOND BIG LIVE
STREAM EVENT AND FOR IT TO FAIL NOT ONLY SIGNALS TO VIEWERS, IT IS DISAPPOINTING RIGHT NOW BUT ALSO ALL THE MEDIA WATCHERS AND EVERYONE THINKING ABOUT BUYING ADVERTISING, SPORTS LEAGUES, DO YOU TRUST THAT LOOKS TO LIVESTREAM GAMES? THIS IS NOT A GREAT START. ED: WE WILL HAVE A FUEL -- FULL OPPORTUNITY BECAUSE NETFLIX HAS EARNINGS. ONE OF THE WORST PERFORMANCE ON THE S&P 500. FELIX, I THINK THEY ISSUED A APOLOGY? FELIX: THEY SAID STICK AROUND AND THEY WILL TAKE THE SHOW. THEY SAID, WE WILL DO THE REUNION AND TAPE IT AND PUT IT UP TOMORROW SO AT SOME POINT, PLANT --FANS WILL WATCH THIS.
I THINK IT IS LESS OF A PROBLEM OF -- FOR THE FANS BUT A BROADER PROBLEM FOR NETFLIX WHEN THEY MADE A BIG DEAL ABOUT WE ARE DOING THIS BIG APPETIZING INITIATIVE AND WE ARE GOING TO RENT UP --PRAMP OF LIVE PROGRAMMING. JON: --CAROLINE: NETFLIX AND AOC WAS WEIGHING IN -- A MOMENT OF CULTURE FILLED --FAILED. THAT WAS ALL THINGS UBER TECHNOLOGY AND DOWN FOR THIS PARTICULAR ADDITION -- BLOOMBERG TECHNOLOGY AND DUNFORD THIS -- AND DONE FOR THIS PARTICULAR ADDITION. ED: FROM NEW YORK, FROM SAN FRANCISCO, MONDAY FUND DAY
2023-04-18 16:41
