Nvidia Earnings Expectations and Apple Vision Pro U-Turn | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE AT BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. ED LUDLOW IS OFF THIS WEEK. COMING UP, WALL STREET EAGERLY AWAITING NVIDIA'S EARNINGS, DUE OUT TOMORROW. WILL THEY GET CONFIRMATION THAT SHARES CAN MEET THE EXPECTATIONS SET BY THE BOOM IN ARTIFICIAL INTELLIGENCE? PLUS, APPLE LOYALISTS ARE MAKING A U-TURN ON THE VISION PRO, SOME RETURNING THE DEVICE TO GET THERE $3500 BACK. SO IS THE HEADSET TRULY THE FUTURE? BIG TIME -- BITCOIN CLIMBS FOR FOUR STRAIGHT WEEKS. WE WILL HAVE MORE THIS HOUR.
FIRST LET'S CHECK IN ON THESE MARKETS. MAYBE SOME PROFIT TAKING HEAD OF ANOTHER BIG WEEK WHEN YOU'RE COMING TO THE EARNINGS EXPECTATIONS. S&P 500 ACTUALLY BELOW THAT 5000 LEVEL.
THE NASDAQ OFF BY MORE THAN 1% AZTEC GETS HIT THE MOST. IT IS INTERESTING THAT I SHINE THE LIGHT ON SOME OF THE CHINESE STOCKS TRADED HERE IN THE U.S.. OFF BY ALMOST 2% BETWEEN CUTS TO THE MORTGAGE RATES, NOT ENOUGH. LUKEWARM RESPONSE, AND CERTAINLY THE CHINESE SECT YOUR TERMS OF TECH EXEMPLIFYING THAT. COMING UP WE WILL HAVE A LOOK AT INDIVIDUAL MOVERS.
THAT COIN HAS MARCHED HIGHER FOR FOUR STRAIGHT WEEKS. WE ARE UP 21% OVER THE COURSE OF THIS YEAR ALONE. IT IS NOTABLE THAT WE ARE ALMOST AT THAT $52,000 LEVEL. SOME TECH CHARTS REALLY STARTING TO SIGNAL WE COULD ECLIPSE THAT $69,000 HANDLE WE HAVE HAD IN THE PAST. ON THE GLOBAL FOUNDRIES PART WE ARE UP 2.8%. ONE OF THE OUTPERFORMANCE OF THE DAY. WHY?
THEY SEEM TO BE GETTING MORE FUNDING FROM THE GOVERNMENT, YET MORE MOVEMENT TOWARD SUPPLY CHAIN IN THE UNITED STATES. SO WE ARE UP AT $54.86. TRADE DESK PULLING BACK ON WHAT WAS A RAMPANT RISE ON FRIDAY. WE SAW EARNINGS FLOORS FOR THAT PARTICULAR -- THIS PARTICULAR ADVERTISING COMPANY, AND THEY ARE TAKING A LITTLE PROFIT TODAY. NVIDIA ALSO SEEING SOME PROFIT-TAKING. CHIPS ACROSS THE BOARD, WE WAIT
AND WATCH WHAT WILL HAPPEN TOMORROW WHEN WE GET THOSE EARNINGS. I'M PLEASED TO SAY THAT OUR NEXT GUEST CAN DIVE INTO THE WORLD OF THOSE STOCKS IN PARTICULAR WHEN IT COMES TO NVIDIA. LET'S GO TO ALTI GLOBAL CIO, NANCY CURTIN. WHEN YOU HAVE SUCH AN AMOUNT OF MONEY UNDER ASSET AND YOU HAVE SEEN AROUND CORNERS WHEN IT COMES TO AI, ARE YOU THINKING WE WILL SELL THE NEWS TOMORROW WHEN IT COMES TO NVIDIA? NANCY: FIRST OF ALL, LOVELY TO BE BACK AGAIN. THERE ARE 770 ONE COMPANIES ANNOUNCING THIS WEEK, THAT THERE IS REALLY ONLY ONE THAT MATTERS, ISN'T THERE? THAT IS, OF COURSE, NVIDIA TOMORROW.
AND THERE IS HUGE EXPECTATIONS BUILT IN. THE STOCK IS UP NEARLY 50%. A LITTLE CORRECTION TODAY, BUT THE STOCK IS UP NEARLY 50%. SO, IT HAS BEEN ON A ROLL HERE, 230% LAST YEAR. AND OF COURSE LAST WEEK IT EDGED OUT AMAZON AND ALPHABET IN TERMS OF SIZE AT $1.8
TRILLION. EXPECTATIONS ARE HIGH. I THINK PROBABLY THEY WILL DELIVER. WHO KNOWS? I HAVE NO INSIGHT INTO THAT, BUT WHAT I CAN SAY IS THE DEMAND FOR NVIDIA GPU CHIPS SEEMS INSATIABLE AT THE MOMENT. AND I THINK IT IS GOING TO BE MORE ABOUT WHAT JENSON SAYS ABOUT THE OUTLOOK AND PRODUCT LINEUP. CAROLINE: ARE YOU ANTICIPATING THAT NVIDIA IS A WINNER TAKES ALL KIND OF SCENARIO? OR DO WE SEE CATCH UP WITH OTHER CHIPMAKERS BEING ABLE TO MAKE INROADS INTO GPUS? NANCY: ANY TIME YOU HAVE A MARKET EXPECTED TO GROW 18 TIMES OVER THE NEXT SEVERAL YEARS, YOU ARE GOING TO HAVE COMPETITION. AT THE MOMENT AMD AND INTEL ARE PRODUCING CHIPS THAT RIVAL NVIDIA.
AND JENSEN CALLS THEM THE FRIEND -- FRENEMIES. LOOK, NVIDIA DOES NOT STAND STILL. THEY CONTINUE TO BRING ON A LOT OF PRODUCT RELEASES. WE HAVE THE SO-CALLED BLACKWELL. AND WE HAVE THE X 100 NEXT YEAR.
IN EACH OF THESE WHAT WE EXPECT IS TO SEE GREATER ENERGY EFFICIENCY, OR PROCESSING CAPABILITY, AND LOWERING COSTS AS WELL. THIS IS GOING TO BE ALL ABOUT THE VOLUME STORY HEADING FORWARD. BUT DON'T WRITE OFF NVIDIA. THEY HAVE A PRETTY STRONG COMPETITIVE MODE. THAT'S FACE IT, NVIDIA IS MORE
THAN A HARDWARE COMPANY. IT IS HARDWARE AND SOFTWARE AND TOOLS AND DEVELOPMENT AND TRAINING MODULES. IT'S IS REALLY IMPORTANT FOR THE DEVELOPMENT COMMUNITY. CUDA, THIS IS A VERY COMPETITIVE MODE THEY HAVE.
BUT ALSO NVIDIA IS CLOUD AND PLATFORM-AGNOSTIC. THAT IS IMPORTANT FOR ENTERPRISES IF YOU ARE DEVELOPING YOUR LARGE LANGUAGE MODEL. YOU MAY NOT WANT TO BE HITCHED UP TO ONE HYPER SCALER. SO, THERE IS A LOT OF COMPETITIVE STUFF THAT NVIDIA STILL HAS IN THEIR FAVOR. CAROLINE: TALK ABOUT THE HYPER SCALARS AND WHAT WE HAVE SEEN IN TERMS OF ALPHABET, FOR EXAMPLE. TRYING TO PROVIDE FROM THE
CLOUD PERSPECTIVE, BUT ALSO WHEN THEY HAVE BEEN OFFERING THE COMPETITIVE TO MICROSOFT'S OPENAI, HAVE YOU BEEN IMPRESSED WITH THE WAY IN WHICH BIG TECH HAS BEEN ABLE TO ENSURE THAT THEY ARE NOT BEING INNOVATED OUT BY NIMBLE STARTUPS? NANCY: I THINK IT IS REALLY INTERESTING. THE FOUNDATION LEVEL, LAYER, THE DIGITAL INFRASTRUCTURE, THIS IS THE HOME OF BIG TECH. THIS IS BILLIONS OF DOLLARS. SMALL TECH CAN COMPETE, RIGHT? BUT WHAT WE ARE SEEING IS A REALLY INTERESTING TREND, WHICH IS BIG TECH AND SMALL TECH WORKING TOGETHER. THE POSTER CHILD FOR THAT IS MICROSOFT AND OPENAI. AND YOU HAVE AMAZON AND ANTHROPIC. REMEMBER, LAST WEEK WE SAW
NVIDIA UNVEILED A WHOLE BUNCH OF INVESTMENTS IN SMALL TECHNOLOGY. THAT'S BECAUSE THEY NEED EACH OTHER. SMALL TECH IS NOT GOING TO HAVE THE KIND OF CAPITAL TO BUILD A FOUNDATION LEVEL. BUT LARGE TECH NEEDS THE INNOVATION COMING FROM SMALL TECH. THE TRAINING OF MODELS IN PARTICULAR COMPLEX AREAS, SUCH AS PHARMACEUTICALS, DRUG DISCOVERY, AUTONOMOUS VEHICLES.
YOU KNOW, THIS IS AI ON THE EDGE. THIS IS AI IN EVERYTHING WE CARRY WITH US. OR PHONES, THE METERS AT HOME, ETC. I THINK THIS TREND OF BIG TECH AND LITTLE TECH WORKING TOGETHER WAS UNDER THE REGULATORY SCRUTINY, BUT IT IS ALSO A WIN-WIN FOR BOTH SIDES. CAROLINE: WHAT YOU GAIN THAT EXPOSURE? YOU WERE GOING TO GET INTO THE PUBLICLY TRADED STOCKS, BUT WHERE HAVE YOU FOUND ALTERNATIVES WHEN YOU ARE NOT LOOKING AT THE PRIVATE MARKETS? NANCY: THREE WAYS. WE HAVE PASSIVE S&P 500
EXPOSURE. IT IS CHEAP, AND IT MEANS WE DON'T UNDERPERFORM. LOTS OF PEOPLE DID LAST YEAR. THE SECOND THING IS, WE ARE ADDING A GLOBAL TECH MANAGER, BECAUSE WE THINK THERE IS A DIVERGENCE.
LAST YEAR WAS ABOUT THE MAGNIFICENT SEVEN. TAKE A LOOK AT THIS SHIP. NVIDIA IS UP NEARLY 50%, TESLA IS DOWN 25%. THINK THERE WILL BE A BROADENING IN THE TECH SPACE.
S.A.P., BY WAY OF EXAMPLE, LOTS OF COMPANIES ARE GOING TO PARTICIPATE AS THEY BECOME PART OF THE AI JOURNEY AND OPPORTUNITY AHEAD. WE ALSO THINK SMALL TECHNOLOGY MANAGERS FOCUSED ON WINNERS AND LOSERS COULD REALLY THINK ABOUT AREAS THAT HAVE NOT BEEN PRICED IN. THOSE ARE TWO THINGS WE ARE
DOING IN THE PUBLIC MARKET. I TALKED ABOUT BIG TECH AND LITTLE TECH. WE ARE GOING TO PLAY THAT THROUGH THE PRIVATE MARKETS, BECAUSE WE GET EXPOSURE TO LEADING VENTURE AND GROWTH MANAGERS INVESTING IN THIS SPACE. WE THINK THAT IS A PHENOMENAL
OPPORTUNITY. BECAUSE IF WE GET THAT RIGHT THOSE GAINS ARE NOT 10%, THEY ARE ABSOLUTELY ENORMOUS, POTENTIALLY. THE FINAL THING I WILL SAY IS, INFRASTRUCTURE. JENSON, SATYA NADELLA, THERE IS INFRASTRUCTURE SPEND TO HAPPEN. IT IS NOT JUST GOING TO BE DATA CENTERS.
FIBEROPTICS, TOWERS, AGE COMPUTING, POWER. WE THINK INFRASTRUCTURE, VERY INTERESTING. UNCORRELATED TO THE EQUITY MARKETS. AS A BIT OF AN INFLATION HEDGE. THAT IS NICE GIVEN THE NUMBERS WE SAW THAT -- SO LAST WEEK. WE THINK THAT IS NICE AS WELL. CAROLINE: TALKING DIVERSIFICATION.
NANCY, NICE TO HAVE YOU BACK ON THE SHOW. NANCY CURTIN. LET'S TALK ABOUT ONE OF THOSE MAGNIFICENT SEVEN WE TALK ABOUT LESS IN THE WORLD OF AI. APPLE'S CHIEF OPERATING OFFICER IS ON A VISIT TO TAIWAN TO CELEBRATE THE ANNIVERSARY OF FOXCONN. BY A SIBLING THOSE DEVICES TO EXACTING STANDARDS IN FACTORIES ACROSS CHINA.
MARK GURMAN JOINS US ON WHAT IS HAPPENING WITH APPLE AND HOW CERTAIN COMPANIES -- SHE WASN'T THE ONLY EXECUTIVE TO GO ALONG WITH THIS RARE EVENT HAPPENING IN TAIWAN. OFTEN EXECUTIVES DON'T WANT TO BE MAKING FLAMBOYANT TRIPS LIKE THIS. MARK: THIS IS CERTAINLY A RARE EVENT, BUT LIKE YOU SAID, IT IS A VERY IMPORTANT OCCASION. THIS IS THE 50 ANNIVERSARY --
50-YEAR ANNIVERSARY OF APPLE'S MOST IMPORTANT PARTNER. I DON'T THINK THAT IS ARGUABLE. FOXCONN BUILDS 90%-PLUS OF THE DEVICES APPLE SELLS. THE CORE OF THE COMPANY'S
BUSINESS. JEFF WILLIAMS, HE REALLY OVERSEES THAT RELATIONSHIP, ALONG WITH HIS TOP LIEUTENANT, THE SENIOR VICE PRESIDENT OF OPERATIONS. THOUGH, THE TWO OF THEM ARE IN TAIWAN FOR THAT 50-YEAR ANNIVERSARY. TIM COOK WHO CREATED THAT RELATIONSHIP A COUPLE OF DECADES AGO WHEN HE BECAME APPLE'S HEAD OF OPERATIONS, HE IS NOT THERE. INSTEAD WE ARE TOLD HE SENT A VIDEO MESSAGE. OBVIOUSLY WE ARE WELL AWARE OF THE GEOPOLITICAL CHALLENGES RELATED TO CHINA AND TAIWAN. WE ARE AWARE OF THE LITTLE
DANCE THAT TIM COOK AND OTHER EXECUTIVES HAVE TO PLAY IN TERMS OF MANAGING THAT RELATIONSHIP IN CHINA, AND PERHAPS COOK AND APPLE FELT IT WAS MORE PROPER FOR COKE NOT TO GO TO TAIWAN FOR THIS EVENT, BUT RATHER SEND TWO OF HIS TOP DEPUTIES. CAROLINE: MAYBE HE IS FOCUSED IN ON THE SALES OR RETURNS OF A CERTAIN NEW PRODUCT. MARK, WHAT ARE YOU TALKING ABOUT THIS WEEKEND? MARK: I DON'T THINK TIM COOK IS BOARDED UP IN A CONFERENCE ROOM IN CUPERTINO BECAUSE OF THIS. I DON'T THINK APPLE IS AT A
CRISIS OR ANYTHING WITH VISION PRO. BUT WE HAVE HEARD THAT THE VISION PRO RETURN RATE IS SOMEWHERE BETWEEN AVERAGE AND ABOVE AVERAGE, DEPENDING ON THE STORE. THE DEVICE ITSELF, WE HAVE HAD PEOPLE COMPLAIN ABOUT THE BULKINESS OF THE OPERATING SYSTEM, THE BATTERY LIFE, AND MORE IMPORTANTLY, COMFORT, BEING ABLE TO WEAR. -- WEAR IT FOR LONG PERIODS OF TIME. OBVIOUSLY PEOPLE BUY APPLE
PRODUCTS AND RETURN IT ALL THE TIME. BUT IF YOU ARE BUYING THE VISION PRO AT THE CURRENT PRICE IT MEANS YOU ARE A VERY EARLY ADOPTER. THOSE ARE THE PEOPLE WHO ARE TYPICALLY NOT RETURNING YOUR PRODUCTS. THAT IS WHY IT IS SO INTERESTING. IN TERMS OF ME? I LOVE IT.
I'M CONTINUING TO USE IT. IT IS BUGGY, IT GETS UNCOMFORTABLE, BUT IT IS GREAT FOR WATCHING VIDEO. MY HOPE IS THAT IT GETS BETTER SOON.
I DON'T ANTICIPATE THE BUGS DROPPING UNTIL A BIG VISION OS UPDATE. BUT I AM BANKING ON SOME IMPROVEMENTS IN THE NOT TOO DISTANT FUTURE. CAROLINE: THIS IS VERSION ONE. MARK GURMAN, WE THANK YOU SO MUCH FOR BRINGING US ALL THINGS APPLE TODAY. COMING UP, WE ARE GOING TO BE DISCUSSING THE STATE OF CRYPTO. THE INDUSTRY MORE BROADLY. HACK VC IS GOING TO JOIN US. JUST RAISED 150 MILLION DOLLARS FOR A NEW OPPORTUNITY FUND. LET'S GET A QUICK CHECK ON
SHARES OF WALMART. IT IS UP 4%. YES, THEIR EARNINGS TOPPED EXPECTATIONS, THEY ARE ALSO BUYING SMART TV MAKER VIZIO. KEEP AN EYE ON THAT STOCK. THIS IS "BLOOMBERG TECHNOLOGY."
>> IT COIN IS THE EXIT STRATEGY. IT IS THE STRONGEST ASSET. SO, WHAT WE SEE RIGHT NOW IS THAT BITCOIN HAS JUST EMERGED AS A $1 TRILLION ASSET CLASS. AND IT IS ALONGSIDE NAMES LIKE APPLE AND GOOGLE AND MICROSOFT. BUT THE DIFFERENCE BETWEEN BITCOIN AND THE MAGNIFICENT SEVEN IS BITCOIN IS AN ASSET CLASS. THERE IS NOT ENOUGH ROOM IN THE CAPITAL STRUCTURE OF THOSE COMPANIES TO HOLD $100 TRILLION WORTH OF CAPITAL. CAROLINE: OF COURSE THAT WAS MICROSTRATEGY CHAIRMAN MICHAEL SAYLOR THERE.
OF COURSE, PRETTY LONG BITCOIN. HIS COMMENTS COME OFF OF BITCOIN'S RECENT RALLY. ITS PRICE TRIPLING SINCE THE START OF 2023. NOW BITCOIN MIGHT EVEN RE-TEST A RECORD HIGH. CONSIDER THIS. THE RALLY INCLUDES FOUR
STRAIGHT WEEKS OF INCREASES THROUGH FEBRUARY 18. IN THE PAST FIVE YEARS THE CRYPTOCURRENCY HAS CLIMBED ON AVERAGE ALMOST 50% OVER THREE MONTHS AFTER FOLLOWING A FOUR-WEEK WINNING RUN. THAT WOULD TAKE BITCOIN TO $70,000 OR THEREABOUTS. LET'S MOVE AWAY FROM PRICE POINTS TO GET A READ ON WHERE PEOPLE ARE PUTTING MONEY TO WORK IN VC AND FLOWING INTO THE WIDER CRYPTO SPACE.
HACK VC HAS MANAGED TO RAISE $150 MILLION DEDICATED TO THE DIGITAL ASSET INDUSTRY. ALEX PACK, COFOUNDER OF HACK VC. THIS IS NOT YOUR FIRST TIME RAISING MONEY. THIS IS A FOLLOW ON. WHAT PART OF THE ECOSYSTEM, WHAT SIZE OF COMPANIES, WHAT PROBLEMS DO YOU WANT TO SEE FIXED HERE? ALEX: YEAH, THANK YOU FOR HAVING ME ON. IT WAS A BIT OF A CHALLENGING
FUNDRAISING ENVIRONMENT NOW VERSUS PRIOR YEARS, OF COURSE. BUT FOR US, WE ARE HYPER-FOCUSED ON EARLY-STAGE, WEB THREE VENTURE-CAPITAL. I KNOW WEB THREE IS MAYBE A WORD THAT IS NOT AS COMMON ON THIS PROGRAM THAN IN THE LAST FEW YEARS, BUT THE THING THAT EXCITES US THE MOST IS, BASICALLY, THIS SORT OF DUALITY IN OUR INDUSTRY, WHERE ON THE ONE HAND WE HAVE BEEN IN THIS PROLONGED BEAR MARKET FOR A COUPLE OF YEARS, BUT WE ARE STARTING TO SEE THIS UPSWING IN TERMS OF PRICES AND A SURGE OF INTEREST FROM ETF INFLOWS. BUT THE THING THAT EXCITES US THE MOST IS THAT FUNDAMENTAL USAGE IS STILL GROWING AND DOING WELL. THERE IS MILLIONS OF PEOPLE USING BLOCKCHAIN'S IN USING WEB THREE AROUND THE WORLD. D5 AND STABLECOINS ARE A REAL KILLER USE CASE.
OUR JOB IS TO INVEST IN THE INFRASTRUCTURE THAT IS BEING BUILT RIGHT NOW THAT CAN CATAPULT THESE USE CASES TO THE MAINSTREAM. CAROLINE: IT MIGHT SURPRISE YOU TO KNOW THAT WE DO HAVE THE ODD PERSON TALKING WEB THREE FROM TIME TO TIME. A LOT OF THEM IN YOUR PORTFOLIO, OR UNICORNS YOU HAVE BACK. THE REASON WE TURN TO YOU IS
BECAUSE YOU HAVE BACKED SOME WINNERS. I THINK OF AVALANCHE. I THINK OF SOME OF THE PROTOCOLS YOU HAVE BEEN IN. AND SOME OF THE INTERSECTIONS OF WEB THREE AND CRYPTO, AND ULTIMATELY ARTIFICIAL INTELLIGENCE. HOW ARE YOU THINKING ABOUT ACCESS TO COMPUTER WHEN YOU ARE BACK IN COMPANIES LIKE JASPER AI? ALEX: YUP, IT IS A MULTI-TRILLION DOLLAR TOPIC RIGHT NOW. I THINK BROADLY WHERE WE ARE IN
THE SPACE IS SORT OF THE MID-90'S EQUIVALENT OF WHERE THE INTERNET WAS IS WHERE WE ARE IN CRYPTO TODAY. WHICH IS TO SAY, A LOT OF USERS AND A LOT OF THINGS HAPPENING, BUT THE EXPERIENCE OF USING CRYPTO IS REALLY POOR FROM AN INFRASTRUCTURE PERSPECTIVE. IT IS SLOW, IT IS INSECURE, IT HAS HACKS HAPPENING ALL THE TIME. AND THEN THE AREA YOU'RE
TALKING ABOUT, WHICH I THINK IS HUGE TOO, IS THIS QUESTION ABOUT HOW WEB THREE CAN HELP SUPPORT AI, AND THE REVERSE. WHAT WEB THREE DOES REALLY WELL IS, IT PROVIDES DEMOCRATIZED ACCESS TO -- WHEN IT COMES TO BITCOIN OR DEFI, IT PROVIDES DEMOCRATIZED ACCESS TO FINANCIAL SERVICES. PEOPLE AROUND THE WORLD CAN GET ACCESS TO DOLLARS AND LENDING AND THINGS LIKE THAT. THE OTHER THING IT DOES WELL IS
DEMOCRATIZED ACCESS TO RESOURCES, RIGHT? ONE AREA THAT IS REALLY INTERESTING IN CRYPTO AI IS THIS OPPORTUNITY TO BASICALLY PROVIDE AI COMPUTE, LIKE GPUS, A CHIP STACK, TO AI DEVELOPERS AROUND THE WORLD. THAT IS SOMETHING THAT BLOCKCHAIN'S ARE GREAT AT. THERE IS ALREADY SEVERAL MULTIBILLION DOLLAR COMPANIES IN THE BLOCKCHAIN INDUSTRY, LIKE CRUSO CLOUD, A FEW OTHERS, THAT STARTED AS BITCOIN MINING COMPANIES THAT PROVIDED CHEAP COMPUTE, AND IT WAS ALSO VERY CLIMATE-FRIENDLY. YOU WOULD GET ENERGY FROM, LIKE, IN A VERY CHEAP WAY FROM EXXON AND CHEVRON, AND USE THAT TO POWER THE BITCOIN ECOSYSTEM AND MINING. BUT NOW A LOT OF THESE COMPANIES ARE PROVIDING AI COMPUTE. IT IS DEMOCRATIZED, SO WE CAN LIVE IN A WORLD NOW, ONCE IT IS SUCCESSFUL, WHERE IT IS NOT JUST OPENAI AND MICROSOFT THAT HOG ALL OF THE GPS. CAROLINE: ALIX, IT IS GREAT TO HAVE YOU.
IT IS GREAT TO HAVE TIME WITH YOU ON THE NEW FUND. A COMANAGING PARTNER AT HACK VC. WE ARE GOING TO DIVE INTO ALL OF THE NEWS COMING OUT OF ANOTHER KEY VC PILLAI OR -- VC PLAYER, SOFTBANK. WATCHING SHARES OF FOUR. KEEP AN EYE ON THE PRICE POINTS OF EV'S. WE ARE TALKING ABOUT WHAT IS
HAPPENING WITH FORD HAVING TO CUT THE COST OF THEIR MUSTANG VERSION OF THE EEEV. THIS IS ALL AS WE SEE SALES REALLY BEING PULLED BACK IN EEEV, BUT SUPPLY RAMPING UP IN TERMS OF INVENTORY. -- EV, BUT SUPPLY RAMPING UP IN TERMS OF INVENTORY. CAROLINE: TIME NOW FOR TALKING TECH. FIRST UP, IT IS A COLLISION OF INTERNATIONAL LAW ENFORCEMENT AGENCIES, INCLUDING THE FBI AND THE U.K.
CRIME ENFORCEMENT AGENCY. THEY HAVE DISRUPTED ONE OF THE MOST PROLIFIC HACKER GROUPS OF ALL TIME. MEANWHILE, E.U. REGULATORS ANNOUNCED AN INVESTIGATION INTO TO DOC'S ALLEGED FAILURE TO PROTECT MINORS. IT COULD RESULT IN HEAVY PENALTIES TO BYTEDANCE. THE EU MARKET COMMISSIONER ANNOUNCED THE SOCIAL MEDIA PLATFORM WILL FACE A FORMAL INVESTIGATION.
WHICH EMPOWERS REGULATORS TO LEVY FINES OF AS MUCH AS 6% OF ANNUAL SALES OR BAN REPEAT OFFENDERS FROM THE EU. SOFTBANK -- LEAVING THE INVESTMENT FUND. JET HAS REPRESENTED SOFTBANK ON BOARDS. BUT THERE IS A LOT OF NEWS SURROUNDING SOFTBANK AT THE MOMENT. LET'S GO TO THE PARENT COMPANY. THE FOUNDER IS CREATE -- IS CONSIDERING THE CREATION -- INTERESTING THING IS WHERE HE IS DOING THIS AND WHO WITH. ALEX WEBB HAS THE STORY, AND WE SHOULD HAVE NO SURPRISE THAT SOFTBANK, HAVING TAKEN MONEY OUT OF SAUDI ARABIA INTO THE VISION FUND, IS WILLING TO BUILD A NEW CHIP REALITY TOO.
ALEX: THE SAUDI'S ARE SITTING ON A HUGE AMOUNT OF CAPITAL. THEY ARE TRYING TO DIVERSIFY THEIR ECONOMY AWAY FROM OIL. THIS IS NOT NEWS. THE FACT IS, YOU HAVE TO WONDER WHETHER THE SAUDI'S ARE ONCE BITTEN TWICE SHY -- SHY IN TERMS OF THE MONEY. AT THE SAME TIME, WE ARE STILL SEEING SAUDI PLOW AHEAD WITH EFFORTS TO BOLSTER THEIR DOMESTIC MANUFACTURING EFFORTS. WHETHER THIS CHIP VENTURE, YOU KNOW, THAT BLOOMBERG SOURCES REPORT SON IS EXPLORING, WHETHER THAT FORMS PART OF IT WILL BE FASCINATING, GIVEN THE REQUIREMENTS OF -- TO MANUFACTURE SUCH A THING. IN TERMS OF INTELLECTUAL
RESOURCES, PEOPLE YOU NEED TO ACTUALLY SET UP THESE SORT OF FABS. CAROLINE: WE HAVE HAD A LOT OF REPORTING THAT SAM ALTMAN HAS BEEN GOING BACK AND FORTH TO THE MIDDLE EAST AND SON, DISCUSSING THE FUTURE OF CHIPMAKING. SAUDI ARABIA HAS $100 BILLION IN TERMS OF AN INVESTMENT FUND. THEY HAVE DEALS THEY ARE ANNOUNCING, AND WITH SOFTBANK IS GOING TO BE INTO FULLY AUTOMATED MANUFACTURING. WHAT FOCUS CAN WE SEE COMING OUT OF SAUDI ARABIA? ALEX: THAT IS WHAT HAS BEEN ANNOUNCED RECENTLY, THAT THEY ARE BUILDING A NEW -- WELL, THEY ARE BUILDING A NEW MANUFACTURING AND RESEARCH AND DEVELOPMENT.
THAT IS SLIGHTLY TO BE IN OLD-SCHOOL MANUFACTURING. THINGS LIKE CARS. CAROLINE: ALEX WEBB WITH ALL OF THE INSIDE. IT IS SUCH A GLOBAL STORY.
CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." LET'S GET A QUICK CHECK ON THESE MARKETS. WE ARE SEEING A LITTLE BIT OF PROFIT TAKING, PERHAPS AS WE ANTICIPATE FED SPEAK. AS WE ANTICIPATE FED MINUTES COME WEDNESDAY. THE NASDAQ IS CURRENTLY OFF BY 1%.
10-YEAR YIELD, DOWN ABOUT THREE BASIS POINTS. BITCOIN ACTUALLY COMING DOWN A LITTLE BIT, BUT ONLY A TINY BIT. WE ARE STILL NEAR THAT $52,000 LEVEL.
MOVE ON AND LOOK AT SOME OF THE MICRO PICTURES. ACROSS THE BOARD IT FEELS WE ARE SEEING SOME PROFIT-TAKING TODAY. WHETHER IT BE IN NVIDIA, OFF BY 5.6%. BUT REMEMBER, IT HAS TRIPLED SINCE THE BEGINNING OF 2023. BUT STOCKS MORE BROADLY.
THE SEMICONDUCTOR INDEX IS SEEING CHIPMAKERS FALL ACROSS THE BOARD. THE ONLY ONE OUTPERFORMING IS GLOBAL FOUNDRIES. LET'S TALK ABOUT WHAT MICRO IS MACRO. HOW MUCH WE ARE FOCUSED ON
WHETHER THE AI HYPE IS REAL PARTICULARLY AROUND NVIDIA. LIZ YOUNG IS WITH US. IS IT ALL ABOUT NVIDIA? DO WE CARE MUCH ABOUT THE FED WHEN WE COME TO MORE OF A FOCUS ON AI RIGHT NOW? LIZ: I THINK WE ALWAYS CARE ABOUT THE FED. AND LAST WEEK WAS A GOOD INDICATION OF THAT. WE ARE STARTING TO SEE THE DATA STACK UP IN A WAY THAT SAYS INFLATION MAY BE IS NOT SOLVED ENTIRELY. AND NOW WE HAVE PUSHED THAT FIRST CUT BACK TO JUNE. OUR KIDS ARE TRYING TO GRAPPLE
WITH THE IDEA THAT THE CUTTING CYCLE MIGHT START LATER THAN WE ORIGINALLY ANTICIPATED. BUT THIS WEEK, NUMBER ONE, OR IS NOT A WHOLE LOT -- A WHOLE TON OF MACRO DATA FOR THE MARKET TO QUEUE OFF OF. NVIDIA'S EARNINGS ARE GOING TO BE THE STORY WE ALL ANTICIPATE AND WAIT WITH IT BREATH TO FIND OUT. THE RISK I SEE IN THIS -- AND
NOT NECESSARILY IN THE COMPANY ITSELF -- BUT THE RISK I SEE IN THIS IS IN 2023 WE HAD SUCH CONCENTRATED PERFORMANCE. SO FAR IN 2024 WE HAVE HAD A LOT OF THE SAME. WE HAVE HAD A FEW FAKE OUTS OF BROADENING OUT IN THE MARKET, YOU HAVE SMALL CAPS THAT CANNOT GET ABOVE A CERTAIN LEVEL. WE HAVE SEEN SOME SECTORS BROADEN OUT BUT OTHERS NOT PARTICIPATE YET. AND WE HAVE SEEN THAT MAGNIFICENT SEVEN TURN INTO MORE OF A MAGNIFICENT FOUR. THE CONCENTRATED PERFORMANCE IS STILL PRESENT, AND THE RISK YOU HAVE ONE WE HAVE SO MUCH ATTENTION ON ONE NAME IS THAT THE ENTIRE INDUSTRY GROUP OR ENTIRE SECTOR ENDS UP TRADING JUST BASED OFF OF WHAT MIGHT HAPPEN IN THAT ONE NAME.
THAT COULD BE GOOD OR BAD IN THE SHORT TERM, BUT IT DOES PRESENT ANOTHER TYPE OF CONCENTRATED RISK TO INVESTORS THAT ARE INVESTED IN, WHETHER IT IS SEE MY CONDUCTORS OR THE AI THEME. CAROLINE: BEING THAT DIVERSIFICATION IS BASICALLY EVERYTHING, DO YOU DIVERSIFY WITHIN WHERE AI CAN PROPEL? EITHER ITS APPLICATION IN DIFFERENT INDUSTRY GROUPS, OR THE PICKS AND SHOVELS. WE WERE TALKING TO NANCY CURTIN ABOUT THE INFRASTRUCTURE SPENDING. DO YOU HAVE TO SEEK DIVERSIFICATION IN OTHER
INDUSTRY GROUPS? LIZ: IT IS A TOUGH CONVERSATION. IT IS A GOOD QUESTION, BECAUSE IT IS A TOUGH CONVERSATION TO HAVE WITH INVESTORS. THE EXPERIENCE THEY HAVE HAD IS THAT DIVERSIFICATION HASN'T WORKED.
THEY HAVE HAD CONCENTRATED PERFORMANCE AND IF YOU ARE IN THE RIGHT NAMES YOU WOULD HAVE DONE BETTER. SO, IT IS A DIFFICULT THING TO CONVINCE PEOPLE OF TODAY. BUT WHEN YOU INVEST IN A THEME -- AND THIS IS PROBABLY HOW I APPROACH THEMES, JUST THE WAY I THINK ABOUT IT.
WHEN YOU INVEST IN A THEME -- AND AI IS A THEME TODAY -- NUMBER ONE, YOU HAVE TO EXPECT THAT THAT THEME IS GOING TO TAKE TWO TO FIVE YEARS, MAYBE LONGER, TO REALLY MATURE INTO WHAT WE ARE EXPECTING IT TO BE. AND OVER THAT TIMEFRAME THINGS ARE GOING TO CHANGE. SO, THE WAY WE SEE THAT THEME TODAY, THE WAY WE ARE EXPECTING THINGS TO BE OPTIMISTIC ABOUT THAT PARTICULAR THING TODAY, ARE PROBABLY GOING TO MORPH. AND YOU CAN COMPARE IT TO SOMETHING LIKE THE INTERNET IN THE LATE 1990'S, EARLY 2000'S. THE ORIGINAL WAY WE EXPECTED THE INTERNET TO BE PROFITABLE AND EXCITING WAS NOT HOW IT ENDED UP EATING LATER, OR AT THE VERY LEAST THERE WERE THINGS BORN OUT OF THAT INTERNET BOOM, RIGHT? WE DID NOT KNOW THAT E-COMMERCE WOULD BE A BIG THING.
WE DID NOT KNOW THAT AD SPENDING WOULD BE A BIG THING FOR THESE COMPANIES. THAT SAME THING IS LIKELY TO HAPPEN WITH THE AI THEME. I WOULD SUGGEST, WHEN YOU ARE INVESTING IN A THEME, I WOULD SUGGEST INVESTING IN IT IN A DIVERSIFIED WAY. AND KEEP IN MIND THE TIMEFRAME IS LONGER THAN ONE YEAR. RIGHT NOW WE ARE QUEUING OFF A VERY SHORT-TERM PERIODS PERIOD -- PERIODS. CAROLINE: WE CAN GET MYOPIC ABOUT EQUITIES. HOW MANY OF YOUR CLIENTS ARE
ASKING YOU, WHAT ABOUT THE BOND MARKET EXPOSURE CAN GET HERE? WHAT ABOUT CORPORATE BONDS, NOT JUST U.S. TREASURIES? LIZ: THAT IS ANOTHER GOOD THING TO THINK ABOUT. OVER THE LAST THREE YEARS OR SINCE THE PANDEMIC EQUITIES HAVE TAKEN CENTER STAGE, AND THERE HAVE BEEN JUICY STORIES ABOUT THINGS THAT HAPPENED IN THE EQUITY MARKET. AI, THE MAGNIFICENT SEVEN, THE LIST GOES ON AND ON. BUT THE THING THAT HAS HAPPENED IN THE LAST YEAR, BECAUSE RATES ARE HIGHER THAN THEY HAVE BEEN IN 40 YEARS, PEOPLE STARTED TO WAKE UP TO THE FACT THAT MAYBE TREASURY BONDS ARE NOT AS BORING AS I THOUGHT THEY WERE. MAYBE IT IS OK TO SIT IN SOMETHING AND GET PAID WHILE I WAIT.
TO GET PAID A DIVIDEND ON -- DIVIDEND, A COUPON, AND REALIZE THERE IS AN APPRECIATION OPPORTUNITY IN SOME OF THOSE SPACES THAT SEEMED SO VANILLA BEFORE. I DO THINK THERE IS GOOD OPPORTUNITY IN THE TREASURY MARKET, PARTICULARLY ON THE SHORT END OF THE CURVE. BUT I THINK YIELD VOLATILITY IS HERE TO STAY FOR A WHILE, ESPECIALLY WE SIT THROUGH THIS PERIOD WHEN WE CANNOT FIGURE OUT WHEN THE FED IS GOING TO CUT. I WOULD ALSO POINT TO SOME OF THE RELATIONSHIPS ON DAYS, AT LEAST IN 2024 SO FAR, THE RELATIONSHIPS ARE NOT WORKING THE WAY WE WOULD EXPECT.
TODAY YIELDS ARE DOWN, AND NASDAQ IS ALSO TAKING IT ON THE CHIN. SO ARE SMALL CAPS. YOU WOULD USUALLY ACCEPT -- EXPECT THE OPPOSITE. INVESTORS ARE WAITING AND LOOKING AROUND A CORNER FOR SOMETHING THAT MIGHT COME OUT OF LEFT FIELD AND SHOCKED THEM.
-- SHOCK THEM. I WOULD TELL PEOPLE TO INVEST WITH THAT MENTALITY. CAROLINE: LOVE HAVING YOU ON THE SHOW. THANK YOU, LIZ YOUNG. MEANWHILE, LET'S TALK ABOUT
TIND ER. IT IS EXPANDING ITS VERIFICATION . THE DATING PLATFORM WILL ROLL OUT THE SYSTEM IN THE U.S., U.K., BRAZIL, AND MEXICO IN THE COMING MONTHS. VERIFIED USERS GET A 67% INCREASE IN MATCHES COMPARED TO THOSE WHO ARE NOT. COMING UP, WE ARE GOING TO DISCUSS THE LATEST IN THE VC SPACE.
STEPHANIE CHOO IS GOING TO BE WITH US. SHE HAS A LASER FOCUS ON ALL THINGS FINTECH. HE IS A FINTECH FLAVOR FOR YOU. A BIG DEAL HAPPENING.
IT IS ENORMOUSLY MOVING DISCOVER FINANCIAL. CAPITAL ONE AGREEING TO BUY DISCOVER FINANCIAL SERVICES IN A 34 BILLION DOLLARS ALL-STOCK DEAL. THE KICKER IS THAT THE CEO OF CAPITAL ONE, SAYING THIS IS A SINGULAR OPPORTUNITY TO BRING TOGETHER TWO COMPANIES THAT CAN COMPETE IN THE LARGEST PAYMENT NETWORKS. CAROLINE: TIME TO TURN TO THE VC SPACE, STARTING WITH ANDERSON HOROWITZ. THIS FIRM HAS UPPED THE ANTE WHEN IT COMES TO LOBBYING IN WASHINGTON TO HELP THE DEFENSE-FOCUSED STARTUPS IT INVESTS IN. THE FIRM SPENT ALMOST $1 MILLION ON -- $100 MILLION ON LOBBYING. EASILY THE MOST PAID OUT BY A
VC FIRM. LET'S BRING IN ANNA EDGERTON. I LOVE YOUR STORY, BECAUSE YOU GO INTO THE DETAILS OF ESPRESSO MARTINIS BEING SIPPED WHILE THEY TALK WITH VARIOUS LAWMAKERS, AND THEIR STARTUPS. WHAT HAS ANDERSON HOROWITZ BEEN DOING THAT IS DIFFERENT? ANNA: IT IS NOT JUST DIFFERENT THAN OTHER VENTURE FIRMS, BUT OTHER INDUSTRIES AND TECH COMPANIES. A LOT OF INDUSTRIES LOBBY IN WASHINGTON.
WHAT IS DIFFERENT ABOUT THIS IS IT IS NOT JUST THE COMPANIES THEMSELVES THAT ARE DEVELOPING THOSE RELATIONSHIPS WITH LAWMAKERS. IT IS THEIR FINANCIAL BACKERS. YOU SEE THIS AMERICAN DYNAMISM FROM ANDREASEN HOROWITZ, TRYING TO CREATE A CULTURE IN WASHINGTON, D.C. THAT IS OPTIMISTIC ABOUT TECHNOLOGY THAT WILL BENEFIT THEIR INVESTMENTS. REALLY AN INTERESTING STRATEGY FROM THESE COMPANIES. CAROLINE: GIVEN THE MANIFESTO PUBLISHED ACROSS SOCIAL MEDIA AT THE END OF LAST YEAR BY MARC ANDREESSEN, WE SHOULD PERHAPS BE UNSURPRISED HE IS OPTIMISTIC AND PROBABLY SLIGHTLY BORED OF ALL OF THE PULLING UP IN FRONT OF CONGRESS, PRIOR BETSY HAS MADE, PARTICULARLY SOCIAL MEDIA.
WHAT DID THEY WANT OUT OF THESE DISCUSSIONS? IS IT LIGHT TOUCH REGULATION? IS IT AN UNDERSTANDING OF WHO THE PLAYERS ARE THAT CAN MAKE THE U.S. COMPETITIVE IN A GEOPOLITICAL LANDSCAPE CHECKUP ANNA: IT IS A FEW THINGS. THEY ARE TRYING TO CREATE A NEW CULTURE THAT IS POSITIVE ABOUT TECHNOLOGY. SEEING THE SO-CALLED ATTACK -- TECHLASH.
WHAT WE HAVE NOW IS SMALLER, DEFENSE-MINDED STARTUPS, ADVANCED MANUFACTURING IN OTHER CASES, COMPANIES ARE BUILDING THINGS, USING TECHNOLOGY, USING INNOVATION IN A WAY THAT COULD BENEFIT U.S. NATIONAL DEFENSE AND DOMESTIC ECONOMY. THAT IS REALLY WHERE ANDREASEN HOROWITZ HAS FOCUSED THIS AMERICAN DYNAMISM PRACTICE. THEY ARE TRYING TO CHANGE THE
CALCULATION IN WASHINGTON THAT TECHNOLOGY IS NOT SOMETHING TO BE REGULATED, SOMETHING TO BE FEARED, SOMETHING TO BE HAULED INTO CONGRESS TO TESTIFY IN FRONT OF COMMITTEES, BUT SOMETHING TO BE CELEBRATED AND USED AS A NATIONAL ADVANTAGE. AND THAT IS SOMETHING WE SEE ESPECIALLY IN RELATION TO THE COMPETITION WITH CHINA AND THINGS LIKE AI. SOME OF THESE CUTTING-EDGE TECHNOLOGIES THAT WILL REALLY SHAPE THE ECONOMY AND GEOPOLITICS OF THE FUTURE.
CAROLINE: AND A HEALTHY SPRINKLING OF SPACE TOO. ANNA EDGERTON, BRILLIANT STORY. WE THANK YOU SO MUCH. LET'S STICK WITH THE WORLD OF VC. PERHAPS WHILE REGULATORS MAY OR
MAY NOT BE PLAYING WHEN IT COMES TO M&A IN FINTECH, I'M PLEASED TO WELCOME STEPHANIE CHOO, PARTNER AT PORTAGE. YOU HAVE $2 BILLION IN ASSETS UNDER MANAGEMENT, AND YOU MUST HAVE WOKEN UP TODAY AND BEEN LIKE, CAPITAL ONE AND DISCOVERY, THIS DEAL WILL GET THROUGH? HOW WILL THIS SHAKEUP M&A? LIZ: THIS IS AN EXCITING ANNOUNCEMENT. WE HAVE BEEN WAITING TO SEE NEWS FOR A WHILE.
I THINK THIS IS GOING TO BE A BIG QUESTION MARK FOR ANTITRUST AND THE REGULATORS AROUND WHETHER OR NOT THIS DEAL WILL ACTUALLY GO THROUGH. BUT WITH PUBLIC MARKETS BEING FAIRLY CLOSED FOR THE LAST COUPLE OF YEARS, THE EXIT OPTIONS FROM AN IPO PERSPECTIVE HAVE BEEN PRETTY LIMITED IN THE FINTECH SPACE. SO, SEEING A MARQUEE ACQUISITION IN THE INCUMBENT AREA WILL CERTAINLY SPUR DISCUSSION ON WHAT THE M&A OPPORTUNITIES WILL LOOK LIKE OR FINTECHS GOING FORWARD, AND I HOPE IT WILL BOLSTER THE MARKET ENVIRONMENT. WE ARE SEEING THIS ON TOP OF A PRETTY GOOD PUBLIC MARKETS RUN IN EARLY 2024 AND LATE 2023. SO, WE COULD SEE MULTIPLE EXIT
AVENUES OPEN UP FOR STARTUPS THIS YEAR. CAROLINE: WHAT ABOUT THE COMPETITIVE LANDSCAPE AND HOW IT CHANGES UP? WHEN I THINK OF CAPITAL ONE AND DISCOVER I THINK, DOES THAT MEAN FOR B'S AND MASTERCARD CHECKUP YOU MUST BE THINKING, WHERE ARE MY PORTFOLIO COMPANIES GOING TO FIND AN EDGE IN -- EDGE HERE? WHAT ARE YOU INVESTING IN AT THE MOMENT? STEPHANIE: CONSUMER CREDIT HAS BEEN A PRETTY NO-GO SPACE FOR THE LAST LITTLE WHILE FOR VC INVESTORS, JUST GIVEN WHERE THE MARKET ENVIRONMENTS HAVE BEEN AND COST OF CAPITAL. I THINK THERE ARE STILL REALLY INTERESTING INVESTMENTS TO BE MADE IN THAT SPACE, IN THE CONSUMER SPACE SPECIFICALLY. WE HAVE SEEN A NUMBER OF LARGE ROUNDS LIKE MONZO GET DONE IN THE PAST YEAR. IN THE PAST QUARTER, REALLY. I HOPE THEY WILL BE RENEWED INTEREST ON THE CONSUMER SIDE. WE HAVE BEEN TALKING TO A LOT OF OUR FINANCIAL SERVICES CORPORATE CLIENTS. SO, BANKS, INSURANCE COMPANIES.
MANY OF WHOM SERVICE. IT HAS BEEN A HUGE AMOUNT OF INTEREST IN AI. WE ARE SPENDING TIME LOOKING AT THE INTERSECTION OF FINANCIAL SERVICES AND SOME OF THE NEW ADVANCES IN AI. WE ARE SPENDING TIME IN FRAUD.
$10 BILLION IN FRAUD LOST IN 2023. LOTS OF NEW FRAUD VECTORS COMING UP WITH GEN AI AS WELL. MANY OF OUR CORNER -- CORPORATE PARTNERS ARE INTERESTED IN LEARNING ABOUT AS WELL.
IN THE MANAGEMENT SPACE, THE DEMOCRATIZATION OF ALTERNATIVES IS AN AREA WE ARE LOOKING AT PART A BED. CAROLINE: IT IS INTERESTING, YOU MENTIONED MONZO, MENTIONED SOME OF THE AREAS AND ROUNDS THAT HAVE BEEN BUILT HERE. WHERE ARE YOU SEEING THE TALENT GROWING FROM AT THE MOMENT? HAS THERE BEEN SOME SORT OF REGULATORY ARBITRAGE GLOBALLY? STEPHANIE: I'M NOT SURE THERE HAS BEEN A HUGE -- I THINK FINTECH HAS BEEN A GENERALLY UNDER-INVESTED CATEGORY IN THE PAST TWO YEARS. I WOULD SAY THERE WAS A BIG SPIKE UP AND DOWN, SO I'M NOT SURE THERE IS HUGE DIFFERENCES IN WHERE TALENT FLOWS ARE GOING. CERTAINLY AI IS THE BIG STORY
OF THE DAY, SO A LOT OF THE TALENT WE ARE SEEING WANT TO WORK ON PROBLEMS RELATED TO AI, I DO THINK WE WILL SEE FINANCIAL SERVICES ORIENTED AI SOLUTIONS, WHERE THAT IS, I THINK, WHERE WE HAVE SEEN A LOT OF INTERESTING NEW SEED COMPANIES. AND MANY OF OUR EXISTING PORTFOLIO COMPANIES HIRING FOR OR IMPLEMENTING NEW SOLUTIONS IN THE AI SPACE. THAT LEVERAGE AI WITH THE EXISTING TAX TAX. -- TECH STACKS. CAROLINE: STEPHANIE CHOO, ALWAYS SO GREAT TO HAVE YOUR EXPERTISE. PARTNER AT PORTAGE. COMING UP, WE ARE GOING TO HAVE A DEEP DIVE ON TWITTER'S ACQUISITION BY ELON MUSK AND WHAT THE FUTURE HOLDS FOR THE PLATFORM. BEFORE WE DO THAT, SHARES OF
SUPERMICRO, WE HAVE TO GO BACK TO THAT CONVERSATION ON FRIDAY WITH THE CEO OF SUPER MICRO COMPUTER. IT WAS FALLING ON THE DAY FRIDAY. IT IS NOW DOWN ANOTHER 11%. EVEN AS WE SEE ROSENBLATT SECURITIES TO STING THE PRICE TARGET TO A WALL STREET HIGH OF 1300. UP FROM $700. SO, STILL SOME BULLISH VIEWPOINTS OUT THERE FOR THIS COMPANY THAT HAS SURGED 760 PERCENT IN THE PAST YEAR. CAROLINE: NOW, THE X ACCOUNT OF THE WIDOW OF ALEXEI NAVALNY WAS BRIEFLY SUSPENDED A DAY AFTER IT WAS USED TO HELP HER CHALLENGE VLADIMIR PUTIN OVER THE DEATH OF HER HUSBAND. IN A VIDEO POSTED ON HER
ACCOUNT YOU LEONEL THE NAIL ACCUSED PUTIN OF KILLING HER HUSBAND -- YULIA N AVALNAYA ACCUSED PUTIN OF KILLING HER HUSBAND. THIS SUSPENSION COMES A WEEK AFTER THE SITE POSTED AN INTERVIEW WITH TUCKER CARLSON. WHO ELSE TO DISCUSS BUT OUR VERY OWN KURT WAGNER? ALL OF THIS CONCERN ABOUT THE WAY IN WHICH X, AS WAS TWITTER, GAINED NEW LEADERSHIP, CHANGED UP ITS EMPLOYEE BASE, NOW CONCERNS ABOUT CONTENT MODERATION. OUT OF THESE SORTS OF DAY-TO-DAY HEADLINES MAKE YOU THINK ABOUT HOW IT IS OCCURRING OVER THERE RIGHT NOW? KURT: CLEARLY THIS IS SOMETHING THAT THEY ARE STRUGGLING WITH, TO DO AT SCALE, RIGHT? I'M TOLD THIS PARTICULAR SUSPENSION WAS DONE AUTOMATICALLY. SO IT WAS BOTH FLAGGED AUTOMATICALLY, SUSPENDED AUTOMATICALLY, AND ULTIMATELY REVERSED AFTER HUMAN REVIEW.
BUT, AGAIN, THESE ARE THE KINDS OF COMPLICATED ISSUES THAT THESE APPS OF COMPANIES DEAL WITH. IT IS INTERESTING, BECAUSE WHEN ELON MUSK WAS ON THE OUTSIDE THIS IS THE EXACT KIND OF THINKING MY COMPLAIN ABOUT, RIGHT? HE WOULD SAY, TWITTER IS BEING BIASED BECAUSE THEY TOOK THIS ACCOUNT DOWN. NOW HE IS ON THE INSIDE AND THEY ARE STROLLS -- ARE STILL STRUGGLING WITH THE SAME KIND OF STUFF. CAROLINE: YOUR BOOK REALLY CHRONICLES THEN-TWITTER'S STRUGGLES WITH MODERATION WHEN IT CAME TO FORMER PRESIDENT TRUMP AS WELL. WANT TO GAUGE YOUR PERSPECTIVE AND WHAT YOU LEARNED FROM THAT WRITING AND HOW IT PUSHES US FOR IT TO POTENTIALLY A RUNOFF AND AN ELECTION IN THE UNITED STATES. KURT: IT IS SO INTERESTING TO THINK ABOUT, BECAUSE THAT WAS A HUGE PORTION OF THE COMPANY.
HUGE PART OF THE COMPANY'S HISTORY. IT WAS THE RUN-UP TO THE 2020 ELECTION, HOW THEY DEALT WITH PRESIDENT TRUMP, HOW WE USE THE SERVICE TO COMPLAIN ABOUT VOTING, TO COMPLAIN ABOUT THE ELECTION RESULTS AND THINGS LIKE THAT. ULTIMATELY TWITTER ENDED UP BANNING HIM, BUT PRESIDENT TRUMP IS NOW BACK, RIGHT? THERE IS A NEW REGIME AT X THAT HAS BEEN HANDS OFF AND SAID THEY DO NOT WANT TO ENFORCE ANY OF THOSE TYPES OF THINGS. IT WILL BE INTERESTING TO SEE AS WE HEAD INTO 2020 4, 1, DOES FORMER PRESIDENT TRUMP REALLY START TO USE X MORE REGULARLY? IF WE GO TO A POINT WHERE HE STARTS TO COMPLAIN ABOUT THE SAME STUFF IN 2020, A RIGGED ELECTION, FOR EXAMPLE, WILL X STEP IN AND DO ANYTHING ABOUT IT? I'M REALLY FASCINATED TO SEE IF THIS IS GOING TO PLAY ON REPEAT AGAIN, AND HOW THEY ARE GOING TO HANDLE IT THIS TIME AROUND. CAROLINE: TALK ABOUT ALTERNATE UNIVERSES HERE, OR WHAT MIGHT'VE BEEN. WHAT IS SO INTERESTING ARE SOME OF THE REALLY JUICY DETAILS YOU REVEAL.
FOR EXAMPLE, WHO COULD HAVE LED THE BUSINESS OTHER THAN JACK DORSEY AT THE TIME? WHO WAS THAT EXECUTIVE? KURT: THIS IS ONE OF MY FAVORITE DETAILS. WHEN JACK DORSEY RETURNED AS CEO IN 2015 THE BOARD WAS CONSIDERING ANOTHER CANDIDATE, ANDY JASSY, WHO AT THE TIME WAS RUNNING AWS. HE IS NOW THE CEO OF AMAZON TODAY. IT IS AN INTERESTING THOUGHT PROCESS OR THOUGHT EXPERIMENT TO THINK ABOUT WHAT TWITTER WOULD HAVE LOOKED LIKE HAD THE BOARD DECIDED TO GO WITH MORE OF A BUSINESS-MINDED CEO VERSUS JACK DORSEY, WHO WAS A PRODUCT-MINDED CEO. THAT WAS ULTIMATELY THE
DECIDING FACTOR. THEY THOUGHT TWITTER WAS A PRODUCT COMPANY THAT HAD A PRODUCT PROBLEM, SO THEY DECIDED TO GO AND BRING BACK JACK DORSEY. BUT AGAIN, IT IS INTERESTING TO THINK ALIKE, WHERE WOULD THE BUSINESS HAVE BEEN HAD THEY BROUGHT IN SOMEONE WHO IS MAYBE MORE TRADITIONAL IN TERMS OF THEIR BUSINESS CHOPS? CAROLINE: KURT WAGNER, WE KNOW HOW MUCH WORK, BLOOD, SWEAT, AND IT TEARS YOU HAVE PUT INTO THIS BOOK. CONGRATULATIONS ON A GOING ON SALE TODAY. WE THANK YOU, BLOOMBERG'S KURT WAGNER.
MEANWHILE, THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY ." YOU DO NOT WANT TO FORGET TO CHECK OUT OUR PODCAST. YOU CAN DO IT ON YOUR TERMINAL, ONLINE, ON SPOTIFY OR I HEART. ALL OF THIS AS WE ANTICIPATE NUMBERS COMING FROM NVIDIA AFTER THE BELL TOMORROW. WILL THEY LIVE UP TO EXPECTATIONS? WILL WE SEE AI HYPE BECOME A REALITY? WE WILL SEE. THIS IS "BLOOMBERG TECHNOLOGY."
2024-02-23 02:00
