CAROLINE: I'M5 I'M GLAD -- ED LUDLOW. THE HEADLINES CLIENT LEFT, RIGHT, AND CENTER. THERE IS ONE ASSET CLASS ONCE WE GET INTO THAT AMAZON PUTS CONSTRUCTION OF ITS SECOND HEADQUARTERS ON HOLD FOLLOWING ITS BIGGEST EVER JUMP CUT. ED: APPLE'S CONTINUES. CAROLINE: SILVER GAETZ STRUGGLE FOR SURVIVAL LET'S GET TO THAT RIGHT NOW. OVERALL RISK PRETTY HAPPY IT WAS A DATE OF TRADE THE S&P FINALLY SHAKE OFF WHAT HAS BEEN THREE WEEKS OF LOSSES. THE NASDAQ UP OUR THAN 2% BEST
DAY SINCE MIDDLE OF FEBRUARY. STRONG THERE WE ARE HOPING ABOUT IT ECONOMIC REBOUND COMING FROM CHINA. ELSEWHERE IN THE U.S. THIS IS ALL ABOUT, I HAVE THE
FEDERAL RESERVE WANT HAVE TO HIKE TO FAR TOO FAST. LOOK AT THAT, 10 BASIS POINTS IN TERMS OF YIELDS. WHERE IN THE RISK OF SUCH SPECTRUM DID NOT PLAY GAMES WE WERE NOT HAVING ANY SORT OF RISK OR RELIC WHEN IT COMES TO BITCOIN.
REALLY THIS IS ABOUT SENTIMENT. THE U.S. DOLLAR AS ALSO WEAKER SO IT SHOWS YOU THE DOUBLE WHAMMY EFFECT. ED: I FIND THE PSYCHOLOGY INTERESTING.
MAKE ATTACK -- WE SAW ACROSS THE BLOOMBERG TERMINAL'S. THREE DAYS LOOKING AT RIVIAN UP ALMOST 8%. THE COMPANY IS TELLING STAFF 62,000. THAT IS THE PRODUCTION TARGET. CLEARLY, THAT WAS A CONSERVATIVE GUIDE. MET UP BY 6%. CUTTING PRICES.
THE REAL REASON, SALES ARE WEAK BUT ACTUALLY THE MARKET RESPONDING POSITIVELY. BULLISH FORECAST ALSO TALKING UP THE A OUT POWER -- AI POWER. AMAZON IS A KEY NAME WE ARE TRACKING. BLOOMBERG BREAKING THE STORY THAT CONSTRUCTION IS HOUSED IN VIRGINIA ON H2 Q -- HQ TWO. CAROLINE: TALK TO US ABOUT THE IMPORTANCE OF THE SECOND PHASE OF THE CONSTRUCTION. IT'S PART OF THE BIGGER PART OF
THE CONSTRUCTION. >> THEY ARE WRAPPING UP THE CONSTRUCTION OF THE TOWERS. AMAZON MOVES THE WORKERS INTO THOSE FACILITIES THIS SPRING AND SUMMER. THE ISSUE IS THREE 22 STORY
TOWERS. IT'S GOING TO HAVE A HELIX, IT'S GOING TO HAVE A BIG CONFERENCE CENTER,, IS ON PAUSE RIGHT NOW. NO DIGGING FOR THE FORESEEABLE FUTURE. ED: I KNOW LAST APRIL THIS WAS APPROVED AND SOURCES WERE TELLING US AMAZON WAS LOADING -- READY TO PULL THE TRIGGER. WHAT DID AMAZON TELL YOU ABOUT
THIS DECISION? WHY THEY DECIDED TO HIT THE BRAKES? >> WE ARE NOT SURE WHAT KIND OF HIRING FOR GOING TO BE DOING, THEY HAVE HAD A HIRING FREEZE EXPENSE CLUSTER. THERE'S A DIFFERENT VIBE ON THE AND OUTS THIS CAMPUS. THEY'D RUN OUT OF SPACE IN SEATTLE. THEREFORE LOOKING TO PUT PEOPLE ACROSS THE COUNTRY SO 25,000 WAS NOT SO AMBITIOUS A TARGET THAT. CAROLINE:
JUST LOOKING AT PICTURES OF THAT POOP EMOJIS AS YOU CALLED IT. I THOUGHT IT WAS A HELIX. >> OFFICIALLY, YEAH. [LAUGHTER] CAROLINE: TALK TO US ABOUT THE SERIOUS NATURE OF THIS. THEY THINK OF THE TAX BRAKES. >> THE GOOD NEWS FOR ARLINGTON AS THEY HAVEN'T ENDED ANYTHING OVER YET SO OF THE TAX BREAKS RELATED TO HOTEL OCCUPANCY.
A LOT OF THEM ARE JOB-RELATED ONCE THEY STARTED PUTTING BETS IN SEATS THEN THEY GET TAX BREAKS ON THE MARKET THERE. THAT HASN'T STARTED CHANGING HANDS YET. IF AMAZON SAYS THEY'RE COMMITTED TO IT THEY GET A PRETTY GOOD DEAL. ED:
MATT DAY REPORTING OUT OF SEATTLE. LET'S BRANCH OUT A LITTLE BIT. DANNY FINCH PORTFOLIO MANAGER. LEADING TECHNOLOGY RESEARCH, IT'S INTERESTING. I WON'T PUT YOU ON THE SPOT IN YOU HOLD THAT IN YOUR FUNDS BUT HAS AN EXAMPLE, AMAZON KIND OF HITTING THE BRAKES ON THE REAL ESTATE SAID HAVING ALREADY WORKED ON THE PLAY OUTSIDE WHAT IS THAT TELLING YOU ABOUT THE TECHNOLOGY SECTOR RIGHT NOW THE PUTIN IT'S GOING THROUGH? >> IT'S DEFINITELY DIFFERENT THAN IT WAS 12 MONTHS I.
BOTH IN TERMS IN AMAZON'S CASE IT'S A COMPANY THAT OVER HIGHER DURING THE PANDEMIC. PUT A LOT OF CAPITAL TO WORK IN LOGISTICS AND FULFILLMENT. THEY WERE JUST TALKING ABOUT THE HEADQUARTERS BEING PUT ON PAUSE AND THE CHALLENGE FOR AMAZON IS TWOFOLD. YOU HAVE THIS HIGHLY PROFITABLE BUSINESS STARTING TO SLOW. THEY ARE REALLY PHYSICAL BUSINESS WITH A DIGITAL FRONT END. THERE'S ONLY ONE WAY TO GET OUT OF THAT SITUATION WHEN YOU OVERINVEST. YOU HAVE TO REDUCE
YOUR FOOTPRINT WHICH IS HARD FOR THEM TO DO BECAUSE OF THE NATURE OF WHAT IT REPRESENTS SO THEY HAVE TO CROAT OF IT. THEY HAVE TO GET EFFICIENCIES AND THAT'S WHAT THE COMPANY IS GRINDING THROUGH RIGHT NOW. WHEN YOU EXACERBATE THAT WHAT THEY TOUGH ECONOMIC ENVIRONMENT IT MAKES IT THAT MUCH HARDER TO RECRUIT BETS OR TO DRIVE SOME LEVERAGE OUT OF THOSE INVESTMENTS THEY MADE. ED: THE OTHER STORY HAS BEEN EARNINGS. THEY CAN CROSS THAT WITH THE BROAD CALLED. WE ARE GETTING MIXED SIGNALS ABOUT DEMAND.
WHAT DO YOUR TEA LEAVES READ ABOUT THIS? >> THE ENTIRE EARNINGS SEASON IF WE WANT TO UNPACK THAT AND THIS WAS JUST A CONTINUATION OF THAT. IF WE LOOK ACROSS SECTORS, SEMICONDUCTORS ARE ALWAYS THE LEADING INDICATORS FOR GLOBAL ECONOMIC GROWTH OR GLOBAL ECONOMIC SLOWDOWNS. WE'VE SEEN A MATERIAL SLOWDOWN THERE. MOST COMPANIES LOWERING EXPECTATIONS FOR THE YEAR BUT NONETHELESS THESE STOCKS HAVE BEEN RESPONDING ALL RIGHT WHICH IS ENCOURAGING BECAUSE SEMICONDUCTORS ARE THE ONES THAT START TO DISCOUNT THE UPTURN. GREAT INDICES STRUCTURE
NONETHELESS THAT'S WHERE WE AT. THEN YOU HAVE KIND OF THE GROWTH STORIES AND SOFTWARE AND INTERNET AND OTHER SECTORS OR THINGS ARE STILL GROWING. THAT THEY ARE JUST NOT GROWING NEARLY AS FAST AS THE ECONOMY STARTS TO TAKE HOLD AS WELL AS THERE'S JUST SO MUCH CAPITAL THAT CAME INTO THE SPACE OVER A 5-7 YEAR PERIOD. THE MARKET IS STARTING TO
DISCERN NOW ON THE UNIT ECONOMICS AND COMPANIES THAT HAVE REALLY GOOD, STRONG, DURABLE POSITIONS. AND OF THOSE ARE THE COMPANIES THAT ARE LIKELY TO PERFORM AS WE GET TO THE OTHER SIDE OF THE ECONOMIC SITUATION WE ARE IN RIGHT NOW. CAROLINE: >> TECH THAT GETTING GROUPED IN WITH GROWTH IF YOU FEEL BUT THERE IS A LOT OF QUALITY THERE IS A LOT OF CASH THERE IS THE ABILITY TO DO STRONG ACTIVITIES. WE REALLY FOCUSED ON THERE ARE SOME STRONG, SOLID MICRO STORIES AND IT'S LESS BY THE INDEX. CAROLINE: ARE PEOPLE THROWING BABIES OUT WITH THE BATHWATER TO USE THAT AWFUL PHRASE? ED: PRETTY BIG BABIES IN THEIR, YEAH. CAROLINE: HAVE WE DISCERNED MICROSOFT IS A DIFFERENT BEAST? AND MAYBE THEY'LL SEE THEM IN GROWTH STOCKS.
>> I THINK IT'S TWOFOLD. IF WE JUST THINK ABOUT WHAT I CALL THE GIGA CAP'S. WE HAVE STARTED TO SEE A LOT MORE DISCERNMENT. GOOGLE HAS TRADED MUCH LOWER IN TERMS OF EXPECTED EARNINGS GROW SOFT AND APPLE HAVE CONTINUED TO HOLD THEIR MULTIPLES. I THINK GIVEN THE CONFIDENCE IN THE BUSINESS MODELS AND ALL OF THESE COMPANIES ARE GETTING A LOT MORE COMPETITIVE WITH EACH OTHER.
IF WE THINK ABOUT THE IDEA OF AI AND WHAT WE HAVE SEEN WITH THE POTENTIAL IMPLICATIONS. THAT'S ALL UPSIDE FOR MICROSOFT. THE MARKET IS TRYING TO FIGURE OUT WHAT THIS IS GOING TO MEET OVER THE LONGER-TERM I WOULD SAY 2022 WE KIND OF THREW EVERYTHING OUT WITH THE BATH WATER. EARLY THIS YEAR WE HAD THIS RISK ON RALLY. IT'S BEEN A LITTLE CHOPPY OR BUT COMING INTO THIS YEAR IT'S BEEN A CLASSIC EARLY CYCLE POTENTIAL RALLY I DON'T KNOW IF IT'S A BEAR MARKET RALLY BUT IT FEELS MORE LIKE AN EARLY CYCLE RALLY BECAUSE EVERYTHING RISES AND WHAT USUALLY HAPPENS IS YOU GET MONTHS DOWN THE ROAD IT'S THE COMPANIES THAT HAVE THE REAL FINANCIAL PERFORMANCE THAT START TO SHINE THROUGH. CAROLINE: YOU MENTIONED CHATGPT. NVIDIA HAS OUTPERFORMED ARE YOU
MAKING BETS NOW ON WHO IS FIRST PLACE IN THE ARTIFICIAL INTELLIGENCE RACE RIGHT NOW? >> IT IS AN OBVIOUS ONE FOR THE MOMENT. THE EFFECT OF THE MATTER IS YOU CAN'T DEPLOY GPT WITHOUT A TON OF GPUS. AS THAT GOING TO PERSIST? THERE STILL TIME FOR COMPANIES TO DEVELOP APPLICATIONS THAT MIGHT BE MORE EFFICIENT SO THAT'S A RISK. ONE OF THE MOST IMPORTANT PARTS OF NVIDIA'S GROWTH STORIES IS THE DEVELOPING. IS THAT GOING TO BE A COMPETITIVE ADVANTAGE? WE ARE NOT QUITE SURE ON THAT BUT FOR NOW THERE'S PROBABLY NO CLEANER PLAY VAN NVIDIA BUT AS YOU START THINKING ACROSS THE ECOSYSTEM WAS INTERESTING, WE JUST MENTIONED MICROSOFT ANYTHING THEY DO AS UPSIDE. HAD THEY POTENTIALLY DISPLAYS
GOOGLE AS THE DEFAULT ON IOS? CAROLINE: COULD THEY? ED: WHAT YOU THINK? >> THEY POTENTIALLY COULD. IF YOU ARE APPLE, YOU JUST WANT TO PROVIDE A CONSISTENT USER EXPERIENCE AND YOU WANT TO EXTRACT AS MUCH ECONOMIC VALUE AS YOU CAN. ED: ANOTHER ACKERMAN -- ACRONYM WE HAVE BEEN HEARING FOMO IS WHAT WE ARE SEEING IN THE MARKET BROADLY. BASED ON FUNDAMENTALS, I THINK NOT.
>> KNOW, IT'S NOT. WHEN I TALKED ABOUT THE CLASSIC SO WE HAVE TWO THINGS WE HAD THE EARLY CYCLE BEHAVIOR IN TERMS OF THE MARKET AND THEN WE ALSO HAVE THE FROM MEDIC ARTIFICIAL INTELLIGENT KIND OF INVESTING ENVIRONMENT THE INSTITUTIONAL AND IT'S EASY TO KIND OF THROW SOME CAPITAL SO THE REALITY IS THAT IS A LOT OF FOMO BECAUSE THE FUNDAMENTALS HAVEN'T CHANGED THAT MUCH. THERE ARE WAYS TO PLAY ARTIFICIAL INTELLIGENCE AND IT'S GOING TO BE MORE OF WHAT CAN ACTUALLY ENHANCE THE VALUE OF AN EXISTING IS LESS WHERE COMPANIES ARE WELL-POSITIONED ON THE INFRASTRUCTURE SIDE TO BENEFIT FROM THE MASSIVE BUILD OUTS WERE GOING TO HAVE TO SEE TO SUPPORT THIS BUT WERE ALSO GOING TO SEE A TENT WE ALSO SEE THIS I 10 OH SPECULATION AROUND THE EDGES AND SORT OF MAYBE SOME OF THE WEST PROVEN A COMPANY THAT HAS AI. CAROLINE: LET'S GO FROM AI TO VR AND WAS HOPING BREAK SCRIPTS TODAY AND HIS COMPANY IS HAVING TO CUT PRICES OF ITS PRETTY EXPENSIVE HEADSETS. YOU'VE BEEN ADDING TO YOUR POSITION. WHAT WAS ON THE BACK OF THAT? >> IT'S INTERESTING IT'S NOT BECAUSE OF AI, VR.
THE MATTER PRESSES, IT'S THIS THING WE HAVE BEEN TALKING ABOUT FOR MANY YEARS AND IT'S GOING TO INVOLVE MORE SLOWLY. WHAT'S INTERESTING ABOUT MATTER, THE STOCK. THE EXPECTATION WAS THEY HAD TO DO SOMETHING TO REPAIR THEIR STOCK PRICE AND GET AGGRESSIVE WITH'S -- COST STRUCTURE.
THERE IS ANOTHER PART, AND THAT IS ABOUT 18 MONTHS AGO APPLE EFFECTIVELY EXERCISED ITS MARKET POWER AND YOU HAD TO THANKS, REDUCED ADD TRACKING WITH ATT. CAROLINE: OF THE ACRONYMS. >> THERE ARE TWO MORE. THAT REALLY HURT AT A REALLY INHIBITED THEIR ABILITY TO RETURN ON AD SPEND. WHAT'S INTERESTING IS THEY ARE ONE OF THE LARGEST BUYERS OF GP USE ON THE PLANET THEY ARE ALL IN ON AI TO DRIVE BETTER AT MEASUREMENT. THEY MIGHT ACTUALLY WHITE THEIR COMPETITIVE ADVANTAGE OVER TIME AND IT'S KIND OF NOT QUITE AS OBVIOUS A WAY TO THINK ABOUT A COMPANY THAT CAN BENEFIT FROM AI. CAROLINE: LOVE THAT BASIS.
IT'S BEEN A JOY TO HAVE YOU HERE. HOPE YOU COME BACK INTO THE OFFICE THANK YOU FOR MAKING THE SPECIAL TRIP. COMING UP AND OTHER KEY APPLE EXECUTIVE TALKING ABOUT THE COMPANY WE'LL DISCUSS WHY. THIS IS BLOOMBERG. ♪ ED: THE EXECUTIVE IN CHARGE OF APPLE'S ICLOUD IMESSAGE AND FACETIME INFRASTRUCTURE IS LEAVING THE COMPANY ACCORDING TO SOURCES. HE IS STEPPING DOWN AS THEY COMPANIES CLOUD CHIEF NEXT MONTH. IT ADDS TO THE REVOLVING TORTE OF EXECUTIVES AT THE COMPANY.
NICK TURNER IS HERE WITH US. I THINK THAT'S PART OF THE STORY, ISN'T IT? >> IT'S NOT THAT UNCOMMON FOR APPLE EXECUTIVES TO LEAVE. IF IT FEELS LIKE MORE THAN NORMAL THIS YEAR ESPECIALLY BETWEEN NOW AND SORT OF THE LAST FEW MONTHS OF THE YEAR. WE HAD A LOT OF VP LEVEL PEOPLE IN CHARGE OF EVERYTHING FROM INDUSTRIAL DESIGN TO CHIEF PRIVACY OFFICER HEAD OF THE WEBSITE DEPARTING. CAROLINE: APRIL AS THE TIME THAT HE'S
GOING TO BE LEAVING. IN LARGE PART BECAUSE OF SHARES. I'M INTERESTED ON WHETHER THEY ARE FILLING THESE ROLES. >> IN SOME CASES, AND IN THIS CASE THEY ARE HAVING SOMEBODY TAKE OVER HIS DUTIES WHICH IS JEFF ROBIN. ED: FLEX CLAIM, NICE. >> IN OTHER CASES THEY ARE DV CAP DUTIES AND GIVING THEM TO OTHER PEOPLE.
THE INDUSTRIAL DESIGN PERSON THEY ARE GIVING THOSE DUTIES TO OTHER PEOPLE. IT'S A PRETTY BIG DEAL. ED: WE'VE ONLY GOT ABOUT 30 SECONDS BUT THE BIG FIGURES, SERVICES IMPORTANT. >> EVERYTHING CLOUD RELATED, THAT'S BEEN HUGE FOR THEM.
HOW MUCH THEY RELY ON AMAZON AND GOOGLE TO DO CLOUD VERSUS DOING IT THEMSELVES SO MAYBE THAT'S SOMETHING THE NEW PERSONAL HAVE TO SORT OUT TOO. CAROLINE:, FASCINATING. GREAT STORY. WE THANK YOU SO MUCH FOR COMING ON. COMING UP THE LATEST NEWS ON THE VENTURE CAPITAL AND ARTIFICIAL INTELLIGENCE AND GWYNETH PALTROW RAISING FUNDS WE WILL TELL YOU WHY NEXT. THIS IS BLOOMBERG. ♪ ED: TIME NOW FOR TALKING TECH LET'S START WITH AI, ARTIFICIAL INTELLIGENCE START UP SEEKING TO RAISE AS MUCH IS $675 MILLION.
THAT ACCORDING TO THE CITING SOURCES. ON OF DEEP LINES FOUNDERS IS LINKEDIN CREATOR REID HOFFMAN SPEAKING OF WHICH REID HOFFMAN HAS ANNOUNCED HE WILL STEP BACK FROM THE OPEN AI BOARD CITING GREATER TRANSPARENCY. HIS FIRM IS INCREASING THE INVESTING IN COMPANIES USING AI THIS COULD CAUSE A CONFLICT OF INTEREST. HE HAS BEEN A PERSONAL INVESTOR THROUGH HIS CHARITIES SINCE THE 2015 AND IS THIS ONE GWYNETH PALTROW RAISING $75 MILLION FOR THE DEBUT FUND WITHOUT CITING WHERE IT GOT THE INFORMATION. THE FIRM IS LOOKING TO INVEST IN EARLY-STAGE CONSUMER GOODS AND TECHNOLOGY COMPANIES. VERY ON BRENT. -- VERY ON BRAND. CAROLINE: MERGERS COMING FROM BEAUTY, AND FOCUSING ON THE BEAUTY SIDE OF INVESTMENT BUT THAT PREVIOUS TIMES THROUGH WOMEN'S NETWORK SINO HOW FOCUSED SHE IS ON ENSURING WOMEN, DIVERSE LEADERSHIP AND PEOPLE GET A SEAT AT THE TABLE AND ABLE TO INFEST -- INVEST IN FAST-GROWING COMPANIES GWYNETH PALTROW IN BUSINESS LADY. ED:
SHE MOVED ON FROM ACTING TO BE AN ENTREPRENEUR. THE IDEA IS I'VE GOT SOME IN TO PLAY WITH TO SUPPORT ENTREPRENEURS. I'M FINDING LIKE I DID PEOPLE, SPEAKING OF VENTURE CAPITALISTS THIS IS REALLY INTERESTING THE BASICS OF WE ARE INVESTING IN ALL SORTS OF RELATED STARTUPS THE AI RELATED STARTUPS ARE USING GPT 3.5, I KAMPE ON THE BOARD ANYMORE. CAROLINE: WE'VE BEEN INTERVIEWING THE
LIKES WHICH IS SOMEWAYS A COMPETITOR BY NOT ONLY HAVING A SEARCH ENGINE AND BUT ALSO BEING ABLE TO CITE OR THE INFORMATION IS COMING FROM. I THINK THIS IS AN INTERESTING AREA IT'S GOING TO BE A LOT OF INVESTMENT THE BEING THROWN INTO THE AI SPACE WE HAD HAS COLLEAGUE ON THE SHOW A COUPLE OF WEEKS AGO. HOW THEY CAN TAKE EXISTING TOOLS BECAUSE AI WILL IMPROVE EVERY SINGLE COMPANY, I THINK IS WHAT HE SAID SO THIS MAKES SENSE BASED ON THE ACTIVITY WE ARE SEEING OUT THERE.
WHEN I THINK OF AI HYPE I CAN'T HELP BUT THINK OF THE HYPE AROUND CRYPTO AND WE HAVE TO TALK ABOUT THAT IN A MOMENT BECAUSE WERE GOING TO DECIDE WHETHER BITCOIN SHOULD BE TURNED DOWN AS MUCH AS IT IS REGARDING THE SILVER GATE FALLOUT. UP 9% OVER THE LAST FEW TRADING DAYS. IT'S RELATED TO THE CONTAGION CONCERNS.
CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY ON CAROLINE HYDE. ED: AND I'M AUTO -- ED LUDLOW. CRYPTO MARKET STRUGGLING TO POWER THROUGH THE ENCLOSURE OF SILVER GATE CAPITAL ONE OF THE MAIN BANKING PROVIDERS FOR CRYPTOCURRENCY. BITCOIN HITTING A TWO-WEEK LOW FOR MARK LET'S BRING IN. >> WE'RE EFFECT FROM THE COLLAPSE OF FTX LAST NOVEMBER. A MAJOR CLIENT OF STORY GATE AND AS A RESULT SUFFERED FROM A BANKRUPT LUSTER.
THEY SAID THEY DISCLOSED OUR LOSSES AND THEN THEY SAID THEY ARE EVALUATING IF THEY CAN STAY AFLOAT INTERNALLY AND THEY ALSO INDICATED RISKS BEING INVESTIGATED BY THE DEPARTMENT OF JUSTICE SO THIS PROMPTED IN EXODUS. ONE OF THE FEW AND KEY PAYMENT PLATFORMS TO TRANSFER U.S. DOLLARS BETWEEN EACH OTHER REAL TIME. CAROLINE: ALL OF THESE SAYING OUR TIES WITH SILVER GATE ARE BEING PUT ON HOLD FOR THE TIME BEING WHERE DO WE GO FOR THIS ABILITY TO TRANSFER TO ENSURE THE PIPES ARE STILL WORKING, THE INFRASTRUCTURE AS TO WHERE. >> THAT IS THE QUESTION THEY ARE TRYING TO FIGURE OUT.
AND OTHER BANK IS SIGNATURE BANK THAT THEY ARE PLANNING TO REDUCE THE DEPOSITS FROM CRYPTO COMPANIES AND SO THERE'S NOT MANY OPTIONS RIGHT NOW FOR CRYPTO PLAYERS TO FIND A BANK THAT'S WILLING TO TAKE THEM ON AND REPLACE THE ROLE OF SILVER GATE. ED: MORE OF A PSA FOR OUR AUDIENCE. RATINGS CUT AT SILVER GATE. WHERE DO WE GO FROM HERE? CAROLINE AND I WERE TALKING EARLIER AT THE END OF LUSTER, BEGINNING OF THIS YEAR SILVER GATE WAS IN TROUBLE WHY DO THEY KEEP FALLING FURTHER AND FURTHER? >> THEY ARE SEEING REGULATORY PRESSURE. FEDERAL BAKING CAME OUT WITH THE WARNINGS TALKING ABOUT THE RISK OF SERVING CRYPTO COMPANIES AND THEY ARE TRYING TO MAKE SURE THAT ANY CONTAGION RISK ALL NOT LEAK INTO THE REAL WORLD ECONOMY. SO SILVER GATE AS PART OF THAT WE ARE SEEING THE BANK IS NOW TRYING TO FIGURE OUT A SOLUTION ABOUT THE HALF GOING FORWARD. THE MAJORITY OF THEIR DEPOSITORY BASE, THEY ARE GETTING HIT PRETTY HARD BECAUSE THERE DEPOSITORS ARE FLEEING THE BANK, ESSENTIALLY.
CAROLINE: ALL THE PROBLEMS OF CENTRALIZED FINANCE. WE THANK YOU SO MUCH WE APPRECIATE IT. HAVE A WONDERFUL WEEKEND. CO, A SCALABLE PROOF FROM JP MORGAN'S PRIVATE PROJECT.
SOME OF WHAT YOU'RE TRYING TO BUILD AND SUPPORT WITHIN THE ECOSYSTEM FIRST AND FOREMOST TAKE US TO THE INTERPLAY OF CENTRALIZED FINANCE UNTRADITIONAL FINANCE TRYING TO INTERWEAVE ITSELF. HOW MUCH ARE PEOPLE WORRIED ABOUT SOME OF THE CONTAGION RISKS? NOT SIGNATURE, BUT SILVER GATE AND WHAT IT MEANS FOR THE GROWTH IN THAT ECOSYSTEM. >> HI, NEXT. -- THANKS. COMPANIES BASED IN THE U.S. IF YOU WANT TO HAVE THESE U.S. COMPANIES YOU WANT TO HAVE ACCESS TO BANK ACCOUNTS AND BE ABLE TO DO PAYROLL AND HEALTH CARE AND THINGS LIKE THAT SO IT'S ONE OF THESE REALITIES THAT A DECENTRALIZED WORLD WE STILL HAVE TO BE ABLE TO PLAY AND INTEGRATE WITH BANKS.
I DON'T KNOW QUITE WHERE IT'S GOING BUT IT NEEDS TO BE SOMETHING THAT HAPPENS. OTHERWISE, FOR NOT GOING TO HAVE COMPANIES THAT FUNCTION. ED: CASE IN POINT WE ARE TALKING ABOUT SILVER GATE AND ALMOST TRADITIONAL LENDER BUT LENDING TO THE CRYPTO INDUSTRY. THIS IS WHAT WE ASKED OUR AUDIENCE THIS IS THE WORST THAT HAPPENED OR IS THERE MORE TO COME. HOW DO YOU GO ABOUT RUNNING THE BUSINESS? IS THE SPILLOVER CONTAINED? 30% SAID YES 70% SAID NO.
>> IT'S HARD TO TELL BECAUSE I THINK THE KEEPS BEING MOMENTS WERE PEOPLE SAY THIS IS IT AND SOMETHING NEW COMES OUT SO I THINK IT'S GOING TO CONTINUE TO RIPPLE EFFECT. THERE'S A LOT OF OPTIMISM ABOUT THE TECHNOLOGY AND WHAT PEOPLE ARE BUILDING. AND BIG TECH INFRASTRUCTURE. I'M SEEING A LOT OF COLLABORATION AND COOPERATION BETWEEN INTERCHANGE PROJECTS. THE STRENGTH OF WHAT CAN WORK WITH ANOTHER SO AS MUCH AS THERE'S THESE REAL CONCERNS I ALSO THINK THAT PEOPLE ARE STILL INNOVATING AND BUILDING.
WE WANT TO BUILD THINGS THAT ARE RESILIENT AND THAT MEANS BEING RESILIENT IN THE BUSINESS WORLD NOT JUST THE TECH WORLD. CAROLINE: LET'S TALK ABOUT WHAT YOU'RE BUILDING. HE PROOF OF WORK BLOCKCHAIN, SOME WOULD SAY EQUIVALENT TO A BITCOIN BUT IT'S SCALABLE. WHAT ARE YOU HOPING IT CAN SOLVE WITHIN THE INFRASTRUCTURE NEEDS? >> SO ONE OF THE THINGS IS WE ARE FAST BUT ALSO SECURE BECAUSE WE HAVE STRUCTURE THAT HAS RATED CHAINS SO IT REFERS TO OTHER PARTS OF THE CHAINS WE ARE TRYING TO OFFER FOR BUSINESSES TO BE ABLE TO BUILD ON TOP OF US WITHOUT HAVING TO WORRY ABOUT AS THE SECURITY RISKS AND WE ALSO HAVE A SMART CONTRACT LANGUAGE SO THAT IS A PROGRAMMING LANGUAGE THAT PEOPLE RATE DIFFERENT BLOCKCHAIN APPLICATIONS AND AND THAT HAS A LOT OF SAFETY FEATURES TO IT.
THAT IS SOMETHING WE SEE BEING MORE ACCESSIBLE BECAUSE OF THE WAY IT'S STRUCTURED. IT MEANS PEOPLE CAN BUILD MORE VIABLE BUSINESSES BECAUSE HE'LL BE ABLE TO -- I CAN SEE WHAT IT SAYS AS A KNOT ENGINEER THAT'S REALLY VALUABLE TO BE ABLE TO UNDERSTAND WHAT'S HAPPENING. YOU WANT TO GET TO A WORLD WHERE YOU DON'T HAVE TO LOOK INTO THE HEAD. CAROLINE: WELL SAID. SPUN OUT OF A PRIVATE BLOCKCHAIN PROJECT BEING FILLED
WITH AN JP MORGAN. AND THEREFORE ASQ -- I ASK YOU WHAT IS THE TRADITIONAL COMPANIES APPETITE TO CONTINUE TO INVEST OR ADOPT WITHIN OVERALL CRYPTO SPACE WHETHER IT BE BUILDING THEIR OWN PRIVATE BLOCKCHAIN'S OR HARNESS THE POWER OF THE TECHNOLOGY WHILE ON THE SAME SIDE THEY HAVE THIS WORRY ABOUT HOW MUCH BAD PRESS THE ECOSYSTEM GETS. >> I THINK COMPANIES ARE TRYING TO BALANCE THAT WHERE THERE IS SOME REAL INNOVATION OUR PEOPLE HAVE THIS APPETITE FOR THINGS THAT MIGHT SOLVE PROBLEMS BUT THEY ARE TRYING TO BALANCE THAT WITH BEING A LITTLE BIT MORE CONSERVATIVE AT-LARGE COMPANIES.
IT'S A BALANCE THEY HAVE TO TRADE THERE IS STILL INTEREST. THERE ARE COMPANIES THAT ARE DOING PARTNERSHIPS AND FINDING WAYS TO BUILD IN A SPACE. WHETHER THAT'S, YOU KNOW, IT'S A VARIETY OF DIFFERENT THINGS.
IT'S NOT PARTNERSHIPS THAT YOU UNDERSTAND JUST UNDER THE HEAD. ED: I WANT TO DIG INTO BLOCKCHAIN TECHNOLOGY. TECH LITERACY, CAROLINE AND I HAVE BEEN TALKING ABOUT ARTIFICIAL INTELLIGENCE. I FEEL THE CRYPTO HYPE OVER THE LAST TWO YEARS A LOT OF PEOPLE MISS THE BASICS, WOULD YOU SAY THAT'S FAIR? >> I THINK THERE'S A HUGE NEED AND OPPORTUNITY FOR EDUCATION STILL IN THE CRYPTO SPACE. THERE'S A LOT TO LEARN AND RIGHT NOW, I USE THIS EXAMPLE BUT I TALKED TO MY MOM ABOUT HOW SHE WANTS TO DO THINGS AND IT JUST BECOMES THIS HUGE BUREAUCRATIC ONBOARDING EXPERIENCE AND SO I DEFINITELY AGREE MORE EDUCATION SHOULD HAPPENED AND IS HAPPENING BUT I ALSO SEE MORE AND MORE PEOPLE UNDERSTANDING SOME OF THESE THINGS FOR EXAMPLE SO CUSTODY AND WHAT THAT MEANS WHETHER YOU HAVE TOKENS ON THE EXCHANGE. I MEAN THAT'S LIKE A REALLY
IMPORTANT EDUCATION POINT. CAROLINE: HERE IS TO MOMS WANTING TO GET INTO CRYPTO. THANK YOU SO MUCH, ANASTASIA BIZ.
MEANWHILE LET'S TURN TO THE VC WORLD AND SOME OF THE HYPE AROUND AI. GENERAL PARTNER, AND OUR CATCH TEAM AS PART OF INTERNATIONAL WOMEN'S DAY EVENT I ASKED HOW THEY CUT THROUGH SOME OF THE NOISE, SOME OF THE HYPE AND SAW THE WORRIES. >> THE ANSWERS ARE ON THE INVESTING TEAM THERE IS A CERTAIN ATTRACTION THAT PEOPLE WHO ARE MORE INTERESTED IN CERTAIN SECTORS WILL BE ATTRACTED TO AND MEANWHILE THEY MAY IGNORE A REALLY LARGE SECTOR THAT HAS A HUGE MARKET THAT IMPACTS BILLIONS OF LIVES. IT HAS POTENTIAL AND FOR ME PERSONALLY SPENDING TIME ON A INDUSTRY LIKE CRYPTO OR CHAT GPT OR AI THERE'S PLENTY OF INVESTORS WHO ARE GOING TO FOLLOW THAT AND I THINK THE VALUE IS FINDING LARGE MARKETS THAT ARE UNDERSERVED. >> ALSO GOING BACK TO THE OLD TECH ADDITIVES OF PROBLEM SOLUTION. YOU NEED TO SOLVE PROBLEMS FOR
PEOPLE AS OPPOSED TO GETTING CAUGHT UP IN THE HYPE. >> WHAT ABOUT SOME OF THE ETHICS. HOW ARE YOU THINKING? >> I'M FRIGHTENED. AI IS ONLY AS GOOD AS WHAT YOU PUT INTO IT AND HUMANS HAVE BIAS.
BIAS IS GOING TO BE ROLLED INTO IT. WHEN I TALK ABOUT BIAS WHEN BUILDING STRUCTURES I THINK BIAS IS LIKE GRAVITY YOU CAN'T SEE IT, IT JUST EXISTS AND YOU HAVE TO FIGURE OUT, IF YOU WANT TO BE ABLE TO FLY YOU HAVE TO BUILD A BUNCH OF THINGS, A PLANE THAT IS INTENTIONAL TOWARDS BEING ABLE TO DO THAT. IF YOU WANT TO BE ABLE TO REMOVE BIAS YOU HAVE TO BUILD A BUNCH OF STUFF AND BE INTENTIONAL ON TRYING THAT OUT AND IF HYPE IS BUILDING PEOPLE ARE NOT BEING -- SLOWING DOWN TO BE IS INTENTIONAL ABOUT IT WHICH IS WORRISOME.
CAROLINE: CFO OF A-FRAMES AND, ED, THE REASON THE POINT OF VIEW IS IMPORTANT WHEN IT COMES TO BIAS AND BUILDING SHE IS A PROUD TRANS WOMAN OF COLOR. AND SHE WAS VERY HAPPY TO GO THERE TO THIS BOTTOMLESS PLACE OF WHAT IT WAS LIKE BEING A MAN IN THE ROOM TO BEING A WOMAN IN THE ROOM WHEN TRYING TO DISCUSS BUSINESSES. SHE IS ALL ABOUT TRYING TO CREATE NEW BRANDS THAT SERVE A DIVERSE POPULATION. BIAS STRIPPED UP FROM THE VERY BEGINNING. IF ANYONE IS GOING TO BE GOOD TO AI SHE'S GOING TO BE ATTUNED TO SOME OF THE ETHICS. ED: WHY THE BLOOMBERG VOICES ARE SO IMPORTANT IS TO BRING THE PEOPLE THAT ARE ACTUALLY HAVING THE CONVERSATION IN THE ROOM TOGETHER.
WHAT IS A PROBLEM THAT WERE TRYING TO SOLVE AND WHAT IS THE TECHNOLOGICAL SOLUTION AND HOW DO YOU BUILD THE COMPANY? THEY JUST CUT THROUGH THE NOISE, AS YOU SAID. AI, CRYPTO, AS A PROBLEM, SOLUTION, I THINK THAT'S TERRIFIC. CAROLINE: HAVING BEEN GCM FOR A FUND AND GONE ON TO WORK, SHE'S HAD REAL SUCCESS IN SOME OF THE COMPANIES THAT SHE'S BUILT AND INVESTED IN. HAVE TO REMEMBER 80% LED BY WOMEN SO LOUD AND PROUD ABOUT IT IF YOU WANT TO GET MEDIA TRAINED, AND UNDERSTAND A LITTLE BIT MORE. ED: COME TO US AND TELL US ABOUT THAT AND PEOPLE TALK TO THEM. COMING UP A NEW TIKTOK TREND
ABOUT THE RISING COSTS OF DATING WRECKING AT MILLIONS OF YEARS. THAT'S NEXT. THIS IS BLOOMBERG. ♪ CAROLINE: REPRESENTATIVE FOR CYCLIC ON FAMILY NOW HE'S WORKING TO BROADEN U.S. TECHNOLOGY FOCUS OF SAN FRANCISCO. A KEY PLAYER IN THE PASSAGE OF THE CHIPS ACT NOW HE HAS A $2 TRILLION PITCH TO REVITALIZE U.S.
MANUFACTURING IN WHAT HE CALLS ECONOMIC PATRIOTISM. >> NEW ECONOMIC PATRIOTISM MEANS AT THE PRIVATE SECTOR CAN WORK WITH UNIVERSITIES, COMMUNITY COLLEGES, LABOR, GOVERNMENT TO HAVE A COMMON PURPOSE OF INVESTING IN AMERICA'S PRODUCTION CAPABILITY. WE NEED TO LOOK AT REGIONS THAT HAVE BEEN DECIMATED, SAY WHAT OTHER ASSETS, HOW CAN WE HAVE PLACE BASED POLICY FOR REVITALIZATION? >> WHAT ARE YOUR PROUDEST ACCOMPLISHMENTS SO FAR? >> THE CHIPS AND SCIENCE ACT THAT I HELPED DRAFT. COMING TO OHIO, MICRON THE IN UPSTATE NEW YORK. ALMOST A $100 BILLION INVESTMENT.
FOR US TO HAVE THE NEXT GENERATION OF MANUFACTURING WE NEED TECHNOLOGY. WE NEED EMIGRANTS, WE NEED AN EDUCATED WORKFORCE. AND WE NEED GOVERNMENT FINANCING. THIS CAN BE A COMMON NATIONAL PURPOSE. EVERY YEAR FOR MANY DIFFERENT INDUSTRIES, THIS CAN'T BE A ONE-OFF. BOTH PARTIES RECOGNIZE THAT THE CUTTING OF FACTORIES WAS A HUGE MISTAKE. THE ECONOMIC DISPARITY IS
POLARIZING AMERICA. I CALLED FOR A $2 TRILLION INVESTMENT OVER 10 YEARS. WE NEED TO HAVE THE SAME URGENCY TO BUILD THIS PRODUCTION.
IT IS A DIFFICULT ARGUMENT TO CONVINCE PEOPLE ON THIS SPENDING. I HAVE NOT COTTON PEOPLE TO BUY INTO THE TRUE -- $2 TRILLION INVESTMENT. I WILL CONTINUE TO MAKE IT THAT WAY HAVE TO GO BIG AND BOLD ON THIS. CAROLINE: GREAT REPORT. IT IS NOTABLE BUT WE ARE TRYING TO SEE THIS FOCUS ON CALIFORNIA OF YES TECHNOLOGY HAS BEEN THE HARPY, THE EPICENTER ANYTHING ABOUT TAXES BUT HAVE TO HAVE DIVERSIFY AND YOU THINK ABOUT CALIFORNIA I ALSO THINK OF INFRASTRUCTURE I THINK OF REBUILDING THE GLOBAL SUPPLY CHAIN. ED:
HOW MUCH TIME HAVE I SPENT DOWN IN THE PORT OF LOS ANGELES BUT WHEN I TALKED TO FOUNDERS AND VCS, WHATEVER THEY WANT TO PROTECT THE BRAIN TRUST COMING OUT OF UNIVERSITIES. THERE IS ALSO SOCIETAL CONVERSATION. WE NEED TO INVEST MORE MONEY. MONEY TALKS, DOESN'T IT? LET'S PIVOT TO A NEW TREND. TIKTOK. DATING SPREES.
WHY DATING APPS ARE TESTING THOSE PREMIUMS. TIKTOK CURIS ARE WRECKING AT MILLION CIVILIANS -- OF VIEWS BREAKING DOWN THE COST. TO SHOW HOW INFLATION HAS IMPACTED THEIR LOVE LIFE. ONE EVENT WENT ON 28 BLIND DATES TO RAISE MONEY FOR CHARITY. WHAT IS THIS ALL ABOUT? >> IF YOU'RE LOOKING FOR AN EXAMPLE OF HOW TIKTOK IS CHANGING THE QUEST FOR LOVE WE HAVE ONE FOR YOU.
A 31-YEAR-OLD GIRL IN NEW YORK CITY DECIDED TO GO ON 28 DATES IN 28 DAYS AND NATURALLY SHE CHRONICLED ALL OF THOSE DATES ON HER SOCIAL MEDIA PLATFORMS. SHE CAME TO THOUSANDS OF FOLLOWERS AND ALL OF THEM SHE TOLD BLOOMBERG THEY WERE ASKING THE SAME QUESTION HOW MUCH IS THIS COSTING YOU AND WHO IS DOING THE PAYING I THINK IT WAS A KEY QUESTION FOR PEOPLE LOOKING FOR LOVE RIGHT NOW. CAROLINE: MOST CASES, WAS IT SHARED? DID THEY BREAK IT DOWN? WHAT WAS BECOME OUT OF ALL OF THIS? >> I THINK THE ANSWER WAS IT DEPENDS ON WHO YOU ASK.
IT'S A QUESTION A LOT OF PEOPLE ARE ASKING. DIFFERENT PEOPLE HAVE DIFFERENT OPINIONS BUT WE SPOKE TO ONE ETIQUETTE EXPERT HAS SAID THE WEIGHT OF THE COST SHOULD FALL ON WHOEVER IS DOING THE ASKING IF YOU'RE NOT ABLE TO AFFORD A DAY MAYBE THINK OF ALTERNATIVE DATES BECAUSE THEY CAN WRECK UP IN THE HUNDREDS OF DOLLARS PER THE TIKTOK'S WE SAW. SO, REALLY IF YOU'RE ASKING SOMEONE OUT AND, CAROLINE, MAKE SURE YOU'RE THE ONE PAYING. CAROLINE: THERE USING THE BOLT FILTER THAT MAKES YOU LOOK LIKE NOTHING LIKE YOU DO IN REAL LIFE. THANK YOU SO MUCH FOR JOINING US TONIGHT. COMING UP WE ARE DIVING DEEP
INTO I'M AFRAID A MURDER MYSTERY THAT IS ACTUALLY REAL. AND WHILE YOU WENT VIRAL. THIS IS BLOOMBERG. CAROLINE: NETFLIX IS GOING VIRAL ON SEVERAL FRONTS LET'S START WITH THE MART ON MARTYRS -- MURDOCH MARTYRS. HE WAS SENTENCED TO LIFE IN PRISON NOW HERE THE OTHER KIND OF UNNERVING PART. HE WAS CONVICTED DAYS AFTER A DOCUSERIES WAS RELEASED ON NETFLIX.
THIS IS WHERE I SORT OF, ART STARTS TO REFLECT WHAT'S HAPPENING IN THE HERE AND NOW. WE WONDERED WHETHER STREAMING COMPANIES WERE GOING TO GET INTO REAL-TIME EVENTS AND IT IS. ED: IT'S ALSO KIND OF NOT NEW BUT MY MIND GOES TO TIGER KING. THE QUESTIONS THE DOCUSERIES RAISED. TIGER KING ONE FOR NEXT FOOT'S. -- NETFLIX.
THEY'RE THINKING ABOUT AND OLD-SCHOOL CONCEPT, LIVE TELEVISION. CAROLINE: ALSO TIMING OF RELEASES. OR GOING TO GET CHRIS ROCK, HE'S GOING TO BE COMING WITH HIS STAND-UP COMEDY ROUTINE EXACTLY THE WEEK BEFORE THE ACADEMY AWARDS, THE OSCARS OR FAMED FOR THE SLAP. ED: AND THEY'RE DOING IT LIVE, WHO WOULD HAVE THOUGHT. CAROLINE:
IT'S MARCH 4, A WEEK BEFORE THE OSCARS THAT DOES IT FOR THIS ADDITION OF BLOOMBERG TECHNOLOGY. ED: THE TWO OF US TOGETHER, CHECK OUT THE PODCAST WHEREVER YOU GET YOUR PODCASTS.
2023-03-06