AT&T's Massive Cyber Attack and Tesla's Robotaxi Delay | 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: LIVE FROM SAN FRANCISCO AND NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. AT&T REVEALS A MASSIVE NEW CYBERATTACK. ED: WE WILL BRING YOU THE DETAILS ON TESLA'S ROBOTAXI UNVEILED TODAY. CAROLINE: AMAZON AND GENERAL CAPITALISTS
BET ON AN AI ROBOTIC STARTUP. ED, WHAT DO YOU HAVE ON THE AT&T HACK? ED: THIS IS OUR BIG BREAKING TECHNOLOGY AND NEWS STORY. AT&T HAS DISCLOSED A MAJOR HACK OF CUSTOMER DATA THAT RELATES TO ALL OF THEIR CELL PHONE CUSTOMERS FOR A PERIOD OF TIME IN 2022, THE BEGINNING OF MAY, THE END OF OCTOBER, IT IS A BROAD SPECTRUM OF CUSTOMER DATA, BUT THE BELIEF IS THAT THAT DATA THAT HAS BEEN OBTAINED BY MALICIOUS ACTORS IS NOT PUBLICLY AVAILABLE. WE ARE WAY OFF SESSION LOWS. WE HAVE BEEN DOWN THE MOST IN ABOUT A MONTH. IT IS KIND OF A HARD TO GAUGE SITUATION. I THINK WE ARE STILL ASSESSING
THE VULNERABILITY OF THAT CUSTOMER DATA. THE CONTEXT IS THAT THIS IS A BIG HACK. IT IS DIFFERENT FROM A HACK A YEAR AGO WHICH WE HAVE ALREADY TALKED ABOUT. CAROLINE: WELL SAID, THE CONTEXT IS THIS HAS HAPPENED QUITE RECENTLY BEFORE. WE GET STRAIGHT TO JOHN BUTLER. AT&T SAID IT DOESN'T BELIEVE THE DATA IS PUBLICLY AVAILABLE. WHAT IS THE DAMAGE? JOHN: I THINK THE DAMAGE FOR AT&T COULD BE TO THEIR BRAND IMAGE IN THE NEAR TERM.
THE ONE THING I WOULD SAY WHEN YOU THINK ABOUT IT IS THINK ABOUT ALL THE HACKS THAT HAVE HAPPENED WITH FORTUNE 500 COMPANIES OVER THE PAST YEAR. IT HAS BECOME QUITE COMMON. I THINK FROM A CONSUMER STANDPOINT, PEOPLE MAY BE MORE HO-HUM ABOUT IT THEN THEY WOULD HAVE BEEN FIVE YEARS AGO GIVEN HOW COMMON HACKS HAVE BECOME. THIS IS BAD NEWS FOR AT&T IN THE SENSE THAT IT IS THE SECOND BIG HACK ANNOUNCED IN LESS THAN A YEAR. ED: I WANT TO BRING SOME OF THE
LATEST NEWS WE GOT. TO BE EXPECTED, BUT WE STARTED TO HEAR FROM REGULATORY AGENCIES AND BODIES. THE SEC IS INVESTIGATING THE MAJOR HACK OF CUSTOMER DATA.
WHAT IS THE VULNERABILITY TO AT&T, WHAT IS THE RISK TO THE COMPANY AT THIS POINT? JOHN: I THINK REGULATORS ARE GOING TO LOOK INTO HOW IT IS HANDLING ITS DATA. THIS HACK WAS NOT ON AT&T'S NETWORK. TO BE CLEAR, IT'S NETWORK WAS NOT BREACHED. IT WAS HOUSING DATA WITH A THIRD PARTY CLOUD PROVIDER.
IT GENERATES MASSIVE AMOUNTS OF DATA THROUGH CALL LOGS. IT LOGS YOUR NUMBER AND THE NUMBER BEING CALLED. THAT IS THE TYPE OF DATA IS WHERE THE BREACH WAS.
TELECOM REGULATORS WILL LOOK INTO DATA STORAGE PRACTICES AND AT&T WILL BE OPEN TO POTENTIALLY CONSUMER LAWSUITS FROM THIS. CAROLINE: WE REACHED OUT TO SNOWFLAKE AND THE COMPANY SAYING WE HAVE NOT IDENTIFIED EVIDENCE SUGGESTING THIS ACTIVITY WAS CALLED BY A VULNERABILITY, MISCONFIGURATION, OR BREACH OF THE PLATFORM. IS THERE READ ACROSS TO HOW COMPANIES LIKE AT&T DO WORK WITH THIRD PARTIES? JOHN: SO, I THINK LIKE A LOT OF FORTUNE 500 COMPANIES, AND A LOT OF DATA WAS MOVING INTO CLOUD STORAGE BECAUSE IT JUST ISN'T PRACTICAL IN THE AGE OF DATA TO STORE EVERYTHING ON PREMISE. I'M SURE AT&T WILL DO A REEVALUATION. I THINK FOR SNOWFLAKE, HAVING SPOKEN WITH OUR ANALYST WHO COVERS THE COMPANY, THEY ARE PROBABLY GOING TO LEAN MUCH MORE HEAVILY INTO SECURING THEIR PLATFORM AND AUGMENTING THE LEVEL OF SECURITY AROUND THE DATA HOUSED ON THE NETWORK. CAROLINE: JOHN BUTLER OF BLOOMBERG INTELLIGENCE, THANK YOU FOR BREAKING IT ALL DOWN FOR US.
WE FOLLOW ON ON AN INCREDIBLE SCOOP THAT TESLA HAS BEEN DELAYING THAT ROLLOUT, THE UNVEILING OF ITS ROBOTAXI. WE HAVE RECOVERED SOMEWHAT ON THE TRAINING TODAY. THE MANAGING DIRECTOR, SENIOR ANALYST JOINS US FOR MORE. YOU SAID THE DELAY DID NOT CHANGE ULTIMATELY YOUR BULLISH CALL ON TESLA. WHY NOT?
>> IT IS TWO MONTHS. WE ARE NOT TALKING NINE MONTHS OR A YEAR. YOU WOULD RATHER THEM BE A JAW-DROPPING EVENT. THAT IS WHAT NEEDS TO HAPPEN IN OCTOBER. THE DELAY IS NOT WHAT YOU WANT TO SEE. NO ONE IS POPPING CHAMPAGNE WHEN YOU HEAR THERE WILL BE A DELAY.
BUT IN TERMS OF THE AI STORY, FSD, THE NEXT PHASE OF TESLA, THAT IS UNCHANGED. IN OUR OPINION, THIS IS JUST MORE AN AIR POCKET PERIOD TO GET ONTO GOLD AT THE END OF THE RAINBOW. CAROLINE: LET'S TALK ABOUT SOME OF THE GOLD AT THE END OF THE RAINBOW. WE HAD SEEN A RUN-UP IN TESLA
STOCK. WE DID SEE A FALL YESTERDAY. ED: WHAT SURPRISED ME OVERNIGHT WAS ALL THE RETAIL INVESTOR COMMUNITY VERY PUBLICLY SAYING CAN YOU CONFIRM THIS? BLOOMBERG STANDS BY ITS REPORTING AND WE ALWAYS REACH OUT TO ELON MUSK AND ANY OTHER AVENUE TO ASK FOR COMMENT AND VERIFY. BUT WHAT WAS IT THEN? YOU REMAIN BULLISH ON TESLA. A LOT OF FOLKS IN THAT COMMUNITY WERE SAYING, EXPLAIN THE 8.4% DROP IN THURSDAY'S SESSION. IS THAT JUST BECAUSE OF THE RUN-UP IN THE STOCK THAT PRECEDED IT OR BECAUSE OF GENUINE CONCERN? DAN: THIS IS GOING TO BE A HISTORICAL DAY, WHATEVER DAY IT IS GOING TO BE IN OCTOBER. A LOT OF ANTICIPATION GOING IN
HERE. TESLA IS MORE OF AN AI ROBOTICS PLAY IN MY OPINION THAN JUST AN AUTO COMPANY. IT FEEDS INTO THE NARRATIVE IN TERMS OF EMPTY PROMISES.
I THINK IT IS IMPORTANT AND THIS IS THE MOST IMPORTANT THING, THAT WHEN THEY HAVE THIS EVENT IN OCTOBER IT DOESN'T DISAPPOINT , IT SHOWS THE PATH FOR ROBOTAXIS, SHOWS AUTONOMOUS. TWO MONTHS AWAY, THAT IS A ROUNDING ERROR RELATIVE TO WHERE WE SEE LONGER-TERM. LEAVING THE AI STORY ALONE IS WORTH A TRILLION DOLLARS FOR TESLA. ED: WE ALWAYS APPRECIATE YOU HAVING THIS. WE APPRECIATE THE GRAPHIC WITH YOUR COVERAGE.
ALL THE STOCKS YOU ARE ACROSS. 30 BUYS, THREE HOLDS, AND ZERO CELLS. WHAT WOULD IT TAKE TO MAKE MR. IVES A LITTLE MORE CAUTIOUS ON TESLA? WHAT IS THAT HE WOULD SEE THAT WOULD MAKE HIM RETHINK HIS CALL? I DON'T KNOW. DAN: I MEAN WHAT I WOULD SAY TO THAT POINT, WE HAVE TALKED FOR THE LAST ALMOST 25 YEARS, REALLY POUND THE TABLE, BUT WE HAVE HAD BAD CALLS AS WELL. BUT OUR VIEW ESPECIALLY WHERE WE ARE THE LAST DECADE, ESPECIALLY THE LAST 18 MONTHS, THIS AI REVOLUTION IS JUST STARTING.
WHEN I LOOK AT TESLA, WE TALK ABOUT A QUARTER OR TWO AGO THAT ELON MUSK NEEDED TO STEP IT UP AND I THINK HE DID THAT, I THINK DELIVERIES WAS IMPORTANT FOR Q 2. BUT YOU NEED TO CONTINUE TO SEE DEMAND STABILIZATION, NO MORE MAJOR PRICE CUTS AND OCTOBER, YOU'VE GOT TO DELIVER IN TERMS OF THE NEXT PHASE OF THE STORY, IN TERMS OF ROBOTAXI. CAROLINE: I'M REALLY INTERESTED IN THIS BEING AN AI, ROBOTICS PLAY MORE BROADLY. APPLE HAS SUDDENLY GOT ON THE
AI BANDWAGON AS WELL. HOW ARE YOU FEELING ABOUT THE AI PLAY FOR THAT? DAN: THE CONSUMER AI REVOLUTION GOES THROUGH APPLE. I WILL COMPARE IT A LITTLE TOO MAYBE ROBOTAXI DAY. THAT WAS A HISTORICAL DAY. THAT IS WHERE INVESTORS STARTED TO RECOGNIZE THE KEYS TO THAT KINGDOM IS APPLE. THE HUGE PART IS NOT JUST VALUATION, BUT CATALYZING THE NEXT UPGRADE CYCLE WILL BE APPLE INTELLIGENCE AND AI. IT SPEAKS TO A BROADER VIEW. AMAZON, MICROSOFT, NVIDIA. ED: I WANT TO REMIND TWO SPECIFIC
POINTS. ELON MUSK WANTED MORE TO SHOW. THEY HAD SOME DESIGN RETHINK. IN THE SAME MOMENT, UBER AND LIFT JUMPED 5% IN THE SESSION.
WHAT DID IT TELL YOU ABOUT HOW SERIOUSLY IN THE MARKET INVESTORS TAKE TESLA ON A RIDE-HAILING PLATFORM THEY MIGHT INTRODUCE? DAN: YOU GET A WIN AND THAT SCOOP WAS A GOOD DAY FOR LUDLOW. WHEN YOU TALK ABOUT THE AI PIECE, THERE ARE WORRIES ABOUT THIS FLEET AND WHAT IT COULD LOOK LIKE FOR UBER AND LIFT. I DON'T VIEW IT AS A ZERO-SUM GAME. I THINK THE NEGATIVES ON UBER IS OVERDONE IN TERMS OF WHAT THIS WILL MEAN FROM A ROBOTAXI FLEET PERSPECTIVE. I BELIEVE THAT IS SOMETHING THEY WILL HAVE AS WELL WITH RIDESHARE. 3-5 YEARS FROM NOW, THERE WILL BE A DECENT PERCENTAGE THAT THAT RIDESHARING WILL NOT HAVE A DRIVER. ED:
INTERESTING TO SEE IF WAYMO IS STILL IN THAT CONVERSATION AS WELL. RIVIAN AND LOU SAID DID NOT COME UP. I TALKED WITH THE TEAM AND EQUITIES. I THINK IT IS RISK ON FOR RISK ON'S SAKE. BOTH DOWNTRODDEN, BUT REBOUNDING SUPER SIGNIFICANTLY THIS FRIDAY. CAROLINE: WE HAVE MACRO PEEKING IN BOOSTING THAT RISK APPETITE. WE WILL TALK ABOUT IT ALL WITH
ANNA RATHBONE. GETTING HER MARKET OUTLOOK. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: LET'S GET A BIT OF A MACRO PICTURE IN THE MARKETS. RISK ON FOR TECH NAMES.
THE NASDAQ GOES HIGHER. VOLUMES HIGHER ON THE BENCHMARK. THAT IS PERHAPS AS WE GET FEEL-GOOD MUSIC COMING BACK IN. U.S. PRODUCER PRICES WERE CLIMBING A LITTLE, BUT IF YOU DIG INTO THE PERSONAL CONSUMPTION EXPENDITURE PRICE INDEX, THAT DID NOT LOOK BAD. WE ARE SEEING EUROPE ON FIRE. STOCK MARKETS AROUND THE WORLD
DOING WELL, I'LL BE AT SOME IN ASIA - ALBEIT SOME IN ASIA SELLING OFF. ANNA RATHBUN WITH US. THE TECH MARKET HAS DRAGGED US HIGHER. CAN IT CONTINUE TO DO SO? ANNA: I THINK IT CAN AND HERE IS WHY.
THERE ARE SOME WEAKNESSES IN THE ECONOMY AS WE HAVE BEEN TALKING ABOUT THE LAST MONTH OR SO. WHEN THERE ARE WEAKNESSES, THERE ARE BOUND TO BE COST REDUCTION AND PRESSURE. WHEN YOU LOOK AT IT FROM THAT PERSPECTIVE, THE CYCLICAL AREAS OF THE MARKETS WILL CONTINUE TO BE PRESSURED. WE BELIEVE THAT THE TECH STOCK RALLY HAS NOT JUST BEEN AN AI PHENOMENON, IT IS ALSO A QUALITY PHENOMENON. WHEN YOU HAVE TECH STOCKS RUNNING, COMPANIES THAT HAVE GIVEN US MORE THAN 50% YEAR ON YEAR EARNINGS GROWTH.
IF YOU CONTINUE TO SEE ECONOMIC PRESSURE, THERE IS MORE ROOM TO DO WELL. ED: A SINGLE SESSION A MARKET DOES NOT MAKE, BUT I FOUND YESTERDAY VERY INTERESTING. THE MOMENT WE REPORTED THE TESLA NEWS, IT CLEARLY HAD IN -- AN IMPACT ON THE LEVEL.
THE BIGGEST POINTS DRAGGED WERE NVIDIA, MICROSOFT, I THINK. IS THERE A LESSON TO BE TAKEN FROM THAT? ANNA: INVESTORS HAD BEEN FLOCKING TO THEM BECAUSE THEY ARE HEAVY FLASH WITH CASH. WHEN THE FED LOWERS INTEREST RATES, WE ARE GOING TO HAVE A ROTATION INTO MORE CYCLICAL AREAS THAT WERE PRESSURED DOWNWARD. THE LESSON YESTERDAY WAS A CONFIRMATION FOR ME THAT A LOT OF THE REASONS FOR THE MAGNIFICENT SEVEN GOING UP AT ALSO BEEN QUALITY AND THE REASON FOR BELIEVING THAT MAX SEVEN CAN CONTINUE TO DO WELL GOING FORWARD, IT WAS A CONFIRMATION. CAROLINE:
THERE IN LIES THE QUESTION OF EARNINGS AND THE PROOF OF FUNDAMENTALS. THE BANKS NOT LOOKING GOOD TODAY. ALL EYES CONTINUE TO BE NETFLIX AS THEY COME FIRST AND THEN SOME OF THE MAG SEVEN. CAN THEY SUPPORT THE VALUATIONS THAT MANY ARE FACTORING IN? ANNA: THE VALUATION COMPONENT IS THE STICKING POINT. THE QUESTION IS HOW MUCH OF THE EVALUATION IS REFLECTIVE OF EARNINGS, HOW MUCH IS REFLECTIVE OF AI? THAT IS VERY DIFFICULT TO PIECE OUT. HOW DO YOU EVEN PRICE HOPE? WE ARE SEEING AI FILTERING INTO
THE CONSUMER LIFE THROUGH I GUESS RUFUS WAS THE NEWS TODAY. WE STILL DON'T KNOW EXACTLY HOW IT WOULD BE EXPRESSED IN THE PRODUCTIVITY COMPONENT, THE LABOR MARKET. THAT IS THE STICKING POINT AND THAT IS WHY WE ARE PRETTY MUCH BALANCED, WE ARE VERY DIVERSIFIED. WHEN THE MARKETS SEEM TO BE IRRATIONAL, WE WRITE IT AND REBALANCE IT AND THAT HAS BEEN OUR STRATEGY YEAR TO DATE. ED: THE WORLD WAS WATCHING LAST NIGHT IN THE CONTEXT OF NATO SUMMIT PRESS CONFERENCES AND A U.S. PRESIDENTIAL ELECTION.
IF YOU ARE AN INVESTOR OPERATING IN THE TECHNOLOGY SECTOR, DO YOU LOOK AT IT AS WELL AND THINK ABOUT WHAT MIGHT HAPPEN TO THE AREAS YOU PUT MONEY DEPENDING ON THE OUTCOME IN NOVEMBER? ANNA: WELL, SO THE BIG THREAT I THINK TO BIG TECH'S REGULATION. I KNOW THERE HAS BEEN A LOT OF TALK ABOUT ONE PARTY RULE IN WASHINGTON AND IT IS WAY TOO EARLY. I THINK THERE IS A FEAR OF THAT. IF WE DO HAVE A ONE PARTY RULE, IT IS ABOUT PASSING OF LAWS, NOT JUST THE WHITE HOUSE. IF THAT IS THE CASE, IT CHANGES THE LANDSCAPE FOR NOT ONLY TECH, BUT DEFINITELY AI BECAUSE THERE IS A LOT OF FEAR AROUND IT. THAT IS THE UNCERTAINTY FACING US IN THE FUTURE. ED:
ANNA RATHBUN, THANK. COMING UP, THERE ARE GROWING CALLS ON THE HILL FOR A PROBE INTO MICROSOFT'S A IDEAL WITH G 42. WE HAVE NEW DETAILS NEXT. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: KEY REPUBLICAN LAWMAKERS ARE NOW CALLING FOR A FORMAL INTELLIGENCE PROBE INTO THE BUDDING AI PARTNERSHIP BETWEEN MICROSOFT AND ABU DHABI FIRM G42. A FOCUS ON THE TIES TO CHINA. WE HAVE HEARD MURMURINGS AND WORRIES AND NOW IT IS MORE FORMAL. WHAT IS KEY HERE? >> WE HAVE YESTERDAY THE HOUSE FOREIGN AFFAIRS COMMITTEE MICHAEL MCCAUL AND THE CHAIRMAN OF THE CHINA SELECT COMMITTEE CALLING FOR A FORMAL PROBE INTO THIS PARTNERSHIP BETWEEN MICROSOFT AND G42.
IT HAS ATTRACTED A LOT OF SCRUTINY IN WASHINGTON ON ISSUES RANGING FROM HUMAN RIGHTS TO AMERICAN TECHNOLOGY BEING DIVERTED TO CHINA. LAWMAKERS HAVE BEEN FRUSTRATED FOR A LONG TIME ABOUT A LACK OF TRANSPARENCY FROM THE BIDEN ADMINISTRATION. THEY SAY IT IS NOT ENOUGH FOR THE U.S. GOVERNMENT TO BE WORKING ON GENERAL FRAMEWORKS BEHIND CLOSED DOORS, THEY WANT TO SEE THE INTELLIGENCE COMMUNITY EVALUATE ALL THE NATIONAL SECURITY RISKS THEY HAVE IDENTIFIED. ED: YOU AND I HAVE BEEN THROUGH A SIMILAR STORY TOGETHER WITH CATL, THE CHINESE BATTERY MAKER, AND ITS RELATIONSHIPS WITH U.S. AUTOMAKERS. IT WAS THE CHINA HOCKS THAT WERE DOING THIS IN D.C. HOW ANALOGOUS IS THIS TIE?
MACKENZIE: WE ARE LOOKING AT TWO DIFFERENT TYPES OF INVESTMENTS. THE CA TL THING YOU MENTIONED AS A PARTNERSHIP, BUT IT IS NOT A DIRECT INVESTMENT BY FORD INTO A CHINESE COMPANY. THIS IS A CHINESE COMPANY. THE CONCERN IS THAT IF THE U.S.
ALLOWS SENSITIVE AMERICAN TECHNOLOGY, EVERYTHING FROM AI MODEL WEIGHTS TO THE CHIPS NECESSARY TO STAND UP A DATA CENTER, THAT CHINA WOULD BE ABLE TO USE G 42 AND THE UAE AS A BACKDOOR TO ACCESS TECHNOLOGY THAT THE U.S. HAS CUT CHINA OFF FROM. THESE ARE DIFFERENT SITUATIONS, BUT A SIMILAR TIDE OF CONCERN THAT HAS BEEN CONSISTENT OVER THE PAST COUPLE OF YEARS THAT ANY DEAL BETWEEN A U.S.
COMPANY AND A CHINESE COMPANY OR A COMPANY WITH LINKS TO SANCTIONS TO CHINESE COMPANIES POST AN INHERENT NATIONAL SECURITY RISK. ED: MCKENZIE HAWKINS ALWAYS ON IT. REALLY APPRECIATE YOUR REPORTING. OPENAI HAS COME UP WITH A SET OF FIVE LEVELS TO TRACK ITS PROGRESS IN BUILDING AI SOFTWARE CAPABLE OF OUTPERFORMING HUMANS. BLOOMBERG'S RACHEL MATZ IS HERE WITH THE DETAILS. I SAW YOU PUT THIS OUT LAST NIGHT ON SOCIAL MEDIA.
FROM THE EVERYDAY PERSON TO INVESTORS AND AI INDUSTRY PARTICIPANTS, THIS IS A SET OF CODIFIED RULES THAT MIGHT BE HELPFUL. WHAT ARE THEY? RACHEL: THE COMPANY HAS THESE FIVE LEVELS AND THEY TOLD EMPLOYEES THEY BELIEVE THEY ARE ON LEVEL ONE, WHICH IS CHATBOTS SIMILAR TO JACK GDP -- CHECK GDP -- CHAT GTP. THEN THERE ARE SOME THAT HAVE MORE CAPABILITIES. THEY WANT PEOPLE TO BE A LITTLE BIT MORE AWARE OF HOW THEY ARE THINKING ABOUT THIS PROCESS OF TRYING TO BUILD ARTIFICIAL GENERAL INTELLIGENCE, WHICH HAS LONG BEEN THEIR STATED GOAL. WHETHER OR NOT THEY WILL GET THERE IS ANOTHER STORY, BUT THEY HAVE BEEN WORKING ON THIS FOR QUITE A LONG TIME. CAROLINE: TO THAT POINT, SAM ALLMAN HAS SAID, MAYBE WE GET TO AGI IN THE NEXT DECADE, BUT HAVE THERE BEEN WHISPERINGS ABOUT HOW FAR WE COULD GET TO THE ULTIMATE LEVEL FIVE? RACHEL: I THINK EVERYBODY HAS A DIFFERENT OPINION.
ONE OF THE THINGS WE HAVE TO THINK ABOUT IS THIS IS A VERY ROUGH DRAFT IN PROGRESS THING THEY ARE WORKING ON AS THEY WERE VERY CLEAR ABOUT SAYING AND THEY WILL BE TAKING FEEDBACK FROM ALL DIFFERENT KINDS OF PEOPLE. NOBODY CAN AGREE ON WHAT IT WOULD MEAN TO HAVE ARTIFICIAL GENERAL INTELLIGENCE, AI THAT CAN OUTPERFORM HUMANS AND DO ALL OF THE THINGS TODAY HUMANS CONCURRENTLY DO. MAYBE WE NEED TO FIGURE OUT WHAT DO WE MEAN WHEN WE TALK ABOUT THAT? WHAT WOULD THAT LOOK LIKE? CAROLINE: RACHEL METZ, ALL OVER TRYING TO GAUGE THE RISKS TO ARTIFICIAL INTELLIGENCE. WE WILL BE DISCUSSING THE STATE OF CRYPTO MARKETS. THE HEAD OF STRATEGY AT KR AKEN WILL BE JOINING US. ED: THE WALL STREET JOURNAL REPORTING STUBHUB HAS DELAYED ITS PLANS FOR AN IPO UNTIL AT LEAST SEPTEMBER IN THE RATIONALE THAT IS BEING REPORTED IS THAT WE HAVE SOME CHOPPY MARKET CONDITIONS. STUBHUB BEING THE ONLINE RESALE
MARKETPLACE FOR TICKETS. INTERESTING ONE. STAY WITH US. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK.
ED: I'M ED LUDLOW IN SAN FRANCISCO. THE STORY IS VERY MUCH LIKE FED BETS, CUT RATE. WE ARE LOOKING AT ECONOMIC DATA. THE CONVERSATION WE HAD EARLIER
ABOUT THINKING VALUATION IS IN PLAY. THE NASDAQ 100 IS UP 1.2%. TESLA HAS REBOUNDED FROM ITS BIGGEST DROP SINCE JANUARY 24. NOW UP 3.4%. THERE IS A RISK ON ATTITUDE. I HAVE BEEN THINKING A LITTLE
BIT ABOUT BITCOIN. IT IS A RISK ASSETS FROM TIME TO TIME. IT IS A WEEKLY GAIN OF 1.6%. I DON'T SEE A LOT IN THE MOMENT OUT THERE. WE WERE ALL ABOUT THE
LONG-TERM. WE DO DOUBLE CHECK ON IT AND MAYBE IT IS BACK TO BEING A RISK ASSET IN A RISK ON ENVIRONMENT. I DON'T KNOW. CAROLINE: IF YOU DON'T KNOW, WE HAVE SOMEONE TO ASK, THOMAS PERFUMO IS WITH US FROM KRAKEN. THERE HAVE BEEN WORRIES ABOUT
ISSUANCE GOING BACK, GERMAN GOVERNMENT TO MOVING THINGS AROUND WITHIN WALLETS. FUNDAMENTALLY, WHAT IS OUR NEXT CATALYST? THOMAS: THERE ARE FOUR BIG CATALYSTS I'M LOOKING OUT FOR IN THE SHORT RUN. WE ARE TALKING ABOUT THE MACROECONOMY. CANADA AND EUROPE ALREADY CUTTING INTEREST RATES. WHEN IS THE FED GOING TO DO IT AND WHAT LEVEL ARE THEY GOING TO DO IT AT? WITH CRYPTO, THERE IS A LOT OF ATTENTION AGAIN, A LOT OF CAPITAL FLOWS, IT IS A RISING TIDE THAT LIFTS ALL BOATS STORY. THE U.S.
ELECTION SETS THE TONE FOR POLICYMAKING. BEYOND THAT, IT IS THE ONGOING TREND OF ADOPTION OF BITCOIN, GLOBAL EXCHANGE TRADED AND INCREASING ACCESS TO CRYPTO ETF'S IN THE U.S. CAROLINE: WE HAVE BEEN THINKING A LOT ABOUT THE ELECTION IN THE U.S. ED:
ONE OF THE THINGS I REPORTED IS THIS IDEA THAT VIVEK RAMASWAMY HAD ACTED AS AN INTERMEDIARY BETWEEN ELON MUSK AND DONALD TRUMP. ONE OF THE AREAS THEY FOUND A RENEWED COMMON GROUND WAS ON CRYPTO. DO THEY HAVE A GAME PLAN FOR THIS? WHAT HAPPENS IN CRYPTO MARKETS IF IT IS BIDEN OR TRUMP OR AFTER LAST NIGHT WE MAY ASK IF IT IS A DIFFERENT DEMOCRATIC NOMINEE, WE DON'T KNOW? THOMAS: I'M NOT AN EXPERT ON THE POLITICAL SPECTRUM HERE, BUT WHEN IT COMES TO THE U.S. SPECIFICALLY, IT IS ABOUT LEGISLATIVE ACTION AND DEVELOPING CLARITY FOR THIS INDUSTRY. WHEN I THINK ABOUT THE ISSUES WE HAVE SEEN, THE PROGRESS WE HAVE MADE, IT HAS BEEN LIGHT PROGRESS ALONG THE CONGRESS WHERE THEY HAVE PASSED TWO BILLS. WHAT IS INTERESTING IS THAT SHOWCASES SOME OF THE BIPARTISAN SUPPORT THAT IS EMERGING FOR CRYPTO LEGISLATION IN CONGRESS AT LEAST. EVEN THOUGH WE HAVE HAD BARRIERS AT
THE EXECUTIVE LEVEL, STILL GOOD PROGRESS GOING FORWARD. I THINK OF COURSE THE REPUBLICAN SIDE OF THINGS SEEMS TO BE MORE PRO-CRYPTO AND MORE PROGRESSIVE IN THAT SENSE, YOU HAVE TRUMP GOING IN A COUPLE WEEKS AND WE WILL SEE HOW THAT PLAYS OUT. ED: CAN I MAKE A HARD PIVOT TO FOOTBALL OR FOR OUR AMERICAN AUDIENCE SOCCER. I KNOW THE PARTNERSHIP WITH
ATHLETICO. THE THING I HAVE ALWAYS THOUGHT ABOUT THEM IS THEY HAVE A MASSIVE FOLLOWING IN LATIN AMERICA, EVEN THOUGH THEY MAY BE OF THE SMALLER OF THE CLUBS IN THE CITY OF MADRID. THOMAS: KRAKEN WAS FOUNDED WITH AN AMBITIOUS VISION TO BE THE MOST TRUSTED AND SECURE PLACE TO BUY CRYPTO IN THE WORLD. YOU THINK ABOUT OUR 13 YEAR LEGACY PIONEERING THINGS LIKE PROOF OF RESERVES AUDITS AND BEING A BIG SUPPORTER OF ETHEREUM WHEN IT LAUNCHED. EVEN TODAY, MAKING CRYPTO ACCESSIBLE TO THE WORLD. WE FEEL LIKE WE HAVE EARNED THE
RIGHT TO BOAST ABOUT THIS LEGACY BEING IN THE MARKET FOR 13 YEARS, BUT ONLY IN THE LAST YEAR WE HAVE STARTED TO BRING OUR BRAND INTO THE WORLD, SO THINGS LIKE OUR F1 PARTNERSHIP OR EVEN THIS NEW PARTNERSHIP WITH ATLETICO MADRID, ONE OF THE MOST ICONIC FOOTBALL TEAMS IN SPAIN. I THINK IT IS REALLY JUST A SHOWCASE THAT WE ARE TRYING TO GET KRAKEN KNOWN GLOBALLY IN A PLACE THAT WE HAVE ALREADY OPERATED FOR A NUMBER OF YEARS, SO WE ARE REALLY PROUD OF EVERYTHING WE ARE DOING NOW. CAROLINE: MARKETING TO AN AUDIENCE YOU WANT TO COME TO USE THE PRODUCT, BUT ALSO MAY BE MARKETING TO AN INVESTOR BASE TO MAYBE GO PUBLIC INTO? IS THAT SOMETHING YOU OR I IN? THOMAS: I HAVE NOTHING PROPRIETARY TO SHARE, BUT ANY STRATEGIC PATHS AVAILABLE TO ACCELERATE THE ACCEPTANCE OF CRYPTO IS SOMETHING WE WILL EXPLORE.
CAROLINE: WE PARSED THE NUMBERS AND WE LOOK AT A 58,000 HANDLE ON BITCOIN AND WE LOOK AT WHAT THE ALT COIN SET BEEN, BUT ULTIMATELY ARE WE STILL SEEING MONEY MOVE INTO THE OVERALL ECOSYSTEM FOR THE SECOND HALF OF THE YEAR? OR DO WE TRADE WHERE WE ARE CURRENTLY AT? THOMAS: A LOT OF IT HINGES ON THE THEORY OF ETF. A LOT OF THE MARKET SENTIMENT IS TRYING TO GAUGE WHAT KIND OF CAPITAL INFLOWS DO WE SEE FROM THAT EVENT? I THINK THE MARKET IS PRICING IN $750 MILLION TO $1 BILLION INTO ETHEREUM ETF PRODUCTS ON A MONTHLY BASIS. IF WE START TO MATCH THAT, THAT CREATES POSITIVE SUPPORT FOR THE INDUSTRY. IF WE SURPASS THAT, WE NOTE THAT BITCOIN WAS ON A PACE OF TWO POINT FIVE BILLION DOLLARS. MAYBE ETHEREUM TESTS ALL-TIME HIGHS AND A RISING TIDE LIFTS ALL BOATS. ONE LAST NOTE IS WHEN I LOOK AT
THE PRIOR ALL-TIME HIGH BACK IN MARCH FOR BITCOIN, THAT IS WHAT I'M CALLING A QUIET PEAK. WE DID NOT SEE SIMILAR LEVELS OF EXTREME VOLATILITY OR SIMILAR LEVELS OF UNPRECEDENTED VOLATILITY OF SIGN-UPS ON OUR PLATFORM TO SUGGEST YOU REALLY HAD PEAK MOMENTUM OF LOTS OF PEOPLE, HUNDREDS OF MILLIONS OF PEOPLE COMING INTO THE INDUSTRY FOR THE FIRST TIME. CAROLINE: HUNDREDS OF MILLIONS. THOMAS PERFUMO, HEAD OF
STRATEGY AT KRAKEN, WE THANK YOU. ED? ED: SOME OF THE OTHER BIG NEWS STORIES, A RARE FAILURE FOR SPACEX. THE COMPANY'S FALCON NINE ROCKET DEPLOYED 20 STARLINK SATELLITES INTO THE WRONG ORBIT. ELON MUSK SAID A PORTION OF THE UPPER ENGINE FAILED FOR UNKNOWN REASON. SPACEX HAS SAID IT MADE CONTACT
WITH FIVE OF THE SATELLITES AND WILL ATTEMPT TO REPOSITION THEM USING THE ATTACHED THRUSTERS. THE FAA HAS ANNOUNCED IT WILL REQUIRE A PROBE INTO THAT FAILURE. I WOULD SAY THAT IS LARGELY PROCEDURAL. SOFTBANK STRENGTHENS ITS CHIP INVESTMENTS. IT ACQUIRED A U.K. SEMI CONDUCTOR START UP. IT WILL OPERATE AS A SOFTBANK
SUBSIDIARY AND WILL KEEP ITS MANAGEMENT TEAM. THE FINANCIAL TERMS WERE NOT DISCLOSED. SAMSUNG IS FACING MORE WALKOUTS, THIS TIME AT ONE OF THEIR MOST ADVANCED AI MEMORY CHIP PLANTS. SEVERAL HUNDRED WORKERS JOINED THE PROTESTS AS THE CAMPAIGN FOR HIGHER WAGES CONTINUES. UNION LEADERS HAVE SAID THEY ARE TARGETING SMALLER, BUT IMPORTANT COMPLEXES IN THE HOPES OF AN UP PRESSURE. CAROLINE? CAROLINE: FASCINATING. STAY GLOBAL WITH A RUSSIAN STORY NOW.
WAGING A WAR UNDER THE SEA? THE QUESTION HAS BEEN EMERGING AFTER A WORRYING PATTERN OF MISSING UNDERWATER CABLES. >> IN 2021, AN UNEXPLAINED INCIDENT OCCURRED OFF THE COAST OF NORWAY. AN IMPORTANT UNDERSEA DATA CABLE HAD BEEN DAMAGED AND NO ONE COULD EXPLAIN WHY. >> SOMETHING WAS OBVIOUSLY SERIOUSLY WRONG. NOTHING WORKED ANYMORE. NO INSTRUMENTS, NO SENSORS. WHERE THE CABLE WAS SUPPOSED TO BE, THERE WAS NO CABLE.
YOU JUST SEE MAYHEM. >> AT THE BOTTOM OF THE WORLD'S OCEANS LIE THE CENTRAL NETWORK OF DATA CABLES. THEY STRETCH HUNDREDS OF THOUSANDS OF MILES AROUND THE WORLD. >> INFORMATION FLOW, COMMUNICATIONS, BANKING SYSTEM, FINANCIAL COMMUNICATIONS, IT IS A VAST NETWORK AND IT IS EXTREMELY VULNERABLE. >> DAMAGE TO ANY OF THEM COULD BE CATASTROPHIC. >> IT COULD SPREAD A PANIC, DISRUPT THE NORMAL FUNCTIONING OF STATES.
>> IN THE LAST FEW YEARS, THERE HAVE BEEN A WHOLE SERIES OF INCIDENTS INVOLVING UNDERSEA CABLES. THESE MAY NOT BE FREAK ACCIDENTS. THEY MAY ACTUALLY BE A SIGN OF SOMETHING MORE SINISTER. SABOTAGE.
ED: THAT WAS EPIC. THAT WAS BLOOMBERG'S JORDAN ROBERTSON. YOU CAN CATCH THE FULL STORY ON BLOOMBERG.COM. THERE WAS ALSO A MUCH LONGER VIDEO REPORT ON THE ISSUE. COMING UP, WE WILL BE JOINED BY THE CEO STANDARD BOX ON THE FRESH SERIES AROUND.
THAT IS NEXT. THIS IS BLOOMBERG TECHNOLOGY. FED CHAIR JEROME POWELL WILL BE INTERVIEWED BY DAVID RUBENSTEIN. THIS IS BLOOMBERG. CAROLINE: LET'S TALK ABOUT ROBOTICS, AI ROBOTICS. THE STARTUP STANDARD BOTS HAS RAISED $63 MILLION, AND MAJORITY OF THE FUNDING COMING FROM A MOVE LED BY GENERAL CAPITALIST. THE CEO EVAN BEARD IS HERE. EVAN:
THANK YOU FOR HAVING ME. CAROLINE: HOW QUICKLY DID IT COME ABOUT? EVAN: IT CAME ABOUT QUICKLY. GENERAL CAPITALIST PREEMPTED OUR FIRST ROUND. CAROLINE:
DOES IT FEEL SLOWLY, SLOWLY, ALL AT ONCE? EVAN: THAT IS EXACTLY RIGHT. IT IS A MOMENT IN TIME WHERE WE REALIZED, THIS IS HAPPENING. ED: I WANT TO GO INTO THE STRATEGIC'S. WE HAVE DONE A LOT ABOUT AMAZON ROBOTICS IN THE WAREHOUSE. IS THE OPPORTUNITY DOWN THE LINE IN THE MANUFACTURING CONTEXT? WHAT ARE YOU HOPING FOR? EVAN: WE REALIZED WE COULD MAKE AN AMERICAN-MADE ROBOT THAT IS EASIER TO USE, MORE AFFORDABLE AND CAPABLE OF PERFORMING MANY MORE TASKS OUT THERE. MOST ROBOTS TODAY HAVE THIS RIGID PROGRAMMING THAT IS SORT OF LIKE CODE.
SOMETHING THAT RESEMBLES CODE. WE ARE FOCUSED ON THIS NEW PARADIGM. IT CAN LEARN FROM THAT AUTONOMOUSLY. ED: WE ARE SHOWING PICTURES OF THE TECHNOLOGY WE ARE NOT TALKING ABOUT. WE ARE NOT TALKING ABOUT HUMANOID ROBOTS, WE ARE TALKING ABOUT THE CUTTING EDGE OF ROBOTIC ARMS ESSENTIALLY. WHY IS YOURS BETTER THAN THE REST? WE HAVE HAD SIMILAR THINGS ON THE SHOW, EVAN. EVAN: WE DON'T NEED TO CREATE LEGS
AND A TORSO TO MAKE A HUGE IMPACT. THIS DEVICE IS SORT OF LIKE SCISSORS, BUT IT CAN GRIP INSTEAD OF CUTTING AND YOU CAN SHOW HOW TO ASSEMBLE SOMETHING, SHOW HOW TO PREPARE FOOD. IT LEARNS FROM THAT DEMONSTRATION AND WE THINK OUR APPROACH, IT IS A MUCH QUICKER WAY TO MARKET AND WE CAN TAKE IT TO MARKET THIS YEAR AND WE ALREADY ARE WITH REALLY BIG CUSTOMERS. CAROLINE: HOW HARD IS THIS? WHAT SORT OF ACADEMIC AFFILIATIONS ARE YOU HAVING TO HAVE? IS THIS NOW ABOUT HIRING TALENT? IS IT ABOUT EXPANDING HERE IN NEW YORK? EVAN: IT IS DEFINITELY HARD. WE HAVE AN AMAZING TEAM, SO THEY GET ALL THE CREDIT.
WE HAVE HIRED WITH RIVIAN, META-, WE HAVE THE BEST OF THE BEST ON THE TEAM. WE THINK THIS COULD MAKE A REALLY BIG IMPACT IN THE WORLD, SO THAT DRIVES OUR TEAM AND IT IS A LOT OF FUN. CAROLINE: SPELL OUT THE MISSION. MANY WORKING IN MANUFACTURING MIGHT LIKE, THAT IS MY JOB. WHAT IS THE NET POSITIVE OUTCOME YOU WANT FROM THIS BUSINESS THAT DRIVES ALL THE PEOPLE TO WANT TO LEAVE RIVIAN AND KEY COMPANIES TO COME TO YOU? EVAN: INDUSTRY STATS SHOW A SHORTAGE OF 2 MILLION WORKERS OVER THE NEXT FEW YEARS. IT IS NOT SO MUCH REPLACING JOBS IS WE HAVE THIS HUGE SHORTAGE.
WE REALLY THINK THAT MOST OF THE PRODUCTS WE BUY ARE NOT MADE IN THE U.S. OR MANY OF THEM AREN'T, SO IF WE CAN BRING BACK MANUFACTURING, THAT CREATES JOBS AND IT IS BETTER FOR NATIONAL SECURITY AND PRODUCE WHERE WE USE THE ITEMS. THESE KIND OF PRODUCTIVITY BOOSTS LOWER THE COST OF FOOD AND OTHER ITEMS FOR PEOPLE WHO CAN'T AFFORD THEM THE MOST. WE THINK IT IS REALLY IMPORTANT WORK AND THERE IS A HUGE SHORTAGE RIGHT NOW SO PEOPLE CAN REST ASSURED. ED: I HAVE LISTENED TO JENSEN WONG
TALK ABOUT THE BIGGEST OPPORTUNITIES TO BE UNLOCKED BY WHAT IS HAPPENING IN LARGE LANGUAGE MODELS AND ROBOTICS IS FRONT AND CENTER. I FIND INTERESTING OR SCALE AND LOCATION IN NEW YORK. TALK TO ME ABOUT BUILDING THE COMPANY, TALENT. IS THE MONEY YOU HAVE RAISED
ENOUGH? WALK ME THROUGH THE ROADMAP OF THE NEXT COUPLE OF YEARS. EVAN: WE ARE BRINGING THIS TO MARKET THIS YEAR IN A BIG WAYS. I THINK THIS IS -- OTHER THAN BEING A TV ANCHOR LIKE YOU, THIS IS ONE OF THE MOST FUN THINGS YOU CAN WORK ON IN TECH. IT HASN'T BEEN THAT HARD TO ATTRACT AMAZING TALENT.
THE MISSION ORIENTED FOCUS HELPS ATTRACT TALENT AS WELL. WE HAVE DOUBLED OUR TEAM IN THE LAST 12 MONTHS. ROBOT ORDERS HAVE GONE UP 20X. WE ARE TRYING TO HIRE TO HANDLE THE GROWTH AND ORDERS AND WE ARE EXCITED ABOUT THE FUTURE. ED: EVAN BEARD, CEO OF STANDARD BOTS, GREAT TO HAVE YOU. EVAN: THANK YOU FOR HAVING ME. ED: WE WILL TAKE A LOOK AT ACTS'S
-- X'S VIDEO AMBITIONS AND IF THEIR EFFORTS HAVE TRANSLATED INTO ANYTHING YET. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: I WANT TO TURN OUR ATTENTION TO WHAT PRESIDENT BIDEN HAS BEEN SAYING ANOTHER PLATFORM X. HE HAS POSTED THAT SIX WEEKS AGO I LAID OUT A COMPREHENSIVE FRAMEWORK FOR HOW TO ACHIEVE A CEASE AND BRING HOSTAGES HOME. HE IS TALKING ABOUT ISRAEL-HAMAS. THERE IS STILL WORK TO DO, BUT THAT FRAMEWORK IS NOW AGREED BY BOTH ISRAEL AND HAMAS. HE SAYS HE IS MAKING PROGRESS.
INTERESTING NEWS ON THE SOCIAL MEDIA PLATFORM. ED: THERE HAS BEEN A BIG DEVELOPMENT ABOUT EUROPEAN COMMISSION AND X. THEY SAID ACTS -- X IS THE FIRST BREACH OR OF THE DIGITAL SERVICES ACT.
KURT, YOU WILL HAVE SEEN THE PING-PONG ON X BETWEEN ELON MUSK IN THE LAST HOUR. EXPLAIN WHAT IS HAPPENING PLEASE. KURT: YES, I ACTUALLY HAVEN'T SEEN IT THIS MORNING, I'M SORRY. BUT OBVIOUSLY X IS DOING A LOT WITH THE CHECKMARKS, THAT WAS THE BIG ISSUE MOSQUE STARTED WHEN HE TOOK OVER.
HE WAS SAYING, THIS IS SOMETHING I'M GOING TO CHARGE FOR VERSUS GIVING IT AWAY FOR FREE. I IMAGINE THERE ARE ISSUES WITH HOW THEY ARE DOLING THING -- THESE THINGS OUT ABOUT PEOPLE. IT DOES NOT SURPRISE ME THEY ARE RUNNING INTO THIS AGAIN. CAROLINE: YES, ACROSS THE BOARD, THIS IS SOMETHING THAT ELON MUSK WANTS TO BE ABLE TO BE BRINGING BACK BRANDS AND BRINGING BACK THE TALK OF DRIVING FORWARD REVENUE AND PEOPLE'S CONFIDENCE. HOW WAS HE DOING THAT WITH VIDEO? KURT: YOU MAY REMEMBER THAT AT CES A FEW MONTHS AGO, THEY SAID THEY WOULD REALLY PUSH INTO THIS HIGH QUALITY, PROFESSIONALLY PRODUCED VIDEO SHOWS. THEY ANNOUNCED A BUNCH OF PARTNERS. DON LEMON, TULSI GABBARD, JIM
ROME. THERE WAS THIS IDEA THAT X WOULD BE A SECOND TV. YOU WOULD WATCH THESE HIGHLY PRODUCED THINGS ON YOUR PHONE. SIX MONTHS LATER, A LOT OF THIS HASN'T MATERIALIZED. DON LEMON'S SHOW HAS FIZZLED OUT. TULSI GABBARD HAS NOT POSTED ANY SHOW. JIM ROME'S POSTING SHOWS, BUT THERE WERE NO ADS RUNNING ALONGSIDE IT. IT FEELS LIKE THIS BIG PUSH,
THIS BIG SELL TO REBRAND X AS THIS VIDEO DESTINATION. IN MY OPINION, IT SEEMS TO BE REALLY STRUGGLING SIX MONTHS INTO THIS PROCESS. ED: THE QUESTION IS EYEBALLS. ELON MUSK EMPHASIZES THIS DATA POINT OF USER SECONDS. IF YOU GO TO A TWEET, YOU SEE THE TWEET VIEWS.
IF YOU POSTED A VIDEO, YOU GET SEPARATE DATA. IS THERE ANY CONFIDENCE FROM ADVERTISERS THAT IT IS BEING WATCHED IF YOU PUT VIDEO CONTENT TO THE PLATFORM? KURT: THIS DEBATE BETWEEN VIEWS AND SOMEONE CONSUMING IT HAS BEEN A BIG ISSUE FOR YEARS AND NOT JUST ON X. WE TALKED ABOUT THIS WITH META, BEFORE INSTAGRAM AS WELL. I THINK THE ISSUE AND WHAT I PUT IN THE COLUMN THIS MORNING, WHAT I HEARD FROM A SOURCE IS PART OF THE REASON THE SHOWS AREN'T GETTING MADE IS THEY ARE HAVING ISSUES WITH ADVERTISER DEMAND. IF PEOPLE ARE THROWING MONEY AT YOU, THOSE PROJECTS USUALLY GET MADE, BUT THE FACT THAT THEY ARE NOT SEEING THAT PROGRESS IS A SIGN THAT THE VIEWS ARE PROBABLY NOT THERE. ADVERTISERS WILL GO WHERE THEY
GET EYEBALLS. AS YOU KNOW, IF THERE IS AN AUDIENCE, THERE ARE ADVERTISERS THAT WANT TO REACH THEM AND THERE IS NOT THAT INTEREST RIGHT NOW AND THAT IS A TELLING SIGN. CAROLINE: HOW ARE THINGS INTERNALLY AT X RIGHT NOW? KURT: I THINK IT IS TOUGH BECAUSE THERE IS A LOT OF COST-CUTTING. EARLIER THIS YEAR, THEY BROUGHT BACK IN STEVE DAVIS AND HE WAS THE GUY WHO DID THE INITIAL COST CUTS WHEN ELON MUSK TOOK OVER. HE LOOKED AT LAYOFFS THAT HAPPENED.
THEY ARE AT THIS PLACE WHERE THEY ARE TRYING TO LEVEL SET THE BUSINESS AND IT HAS BEEN COMING UP ON TWO YEARS AND IT IS NOT AN ENCOURAGING SIGN WHEN THEY ARE STILL CUTTING COSTS TWO YEARS INTO THIS NEW VENTURE. ED: KURT WAGNER, THANK YOU. I APOLOGIZE. I DID NOT MEAN TO PUT YOU ON THE SPOT. SINCE WE HAVE BEEN ON AIR, ELON MUSK HAS BEEN POSTING AT OFFICIALS. THE SHORT IS THAT ELON MUSK'S PLATFORM X HAS BEEN HIT WITH A WARNING FROM THE EU ABOUT DECEIVING THE USERS WITH HARMFUL CONTENT. THAT PROMPTED THE BACK-AND-FORTH. THE REGULATORS SAYS THEY ARE
WORRIED THAT BLUE CHECKMARKS ARE TRICKING USERS INTO BELIEVING THESE ARE SAFE, WHEN THERE IS EVIDENCE OF MOTIVATED MALICIOUS ACTORS ABUSING THE CHECK MARK SYSTEM. I WOULD SAY I WROTE TO SOME STAFF AT X AND OFFER THEM AN OPPORTUNITY TO COME ON THE SHOW TO RESPOND TO THIS PRE-LIM MORNING, BUT NO RESPONSE. CAROLINE: MAY BE MONDAY. ED: MAYBE. CAROLINE: YOU AND I HAVE A PRETTY INTEGRAL SOCCER/FOOTBALL MATCH TO WATCH. THAT DOES IT FOR THIS EDITION
OF BLOOMBERG TECHNOLOGY FOR NOW. ED: THE EUROS AND COPA AMERICA, I'M EXCITED FOR MONDAY. THERE WAS SO MUCH HAPPENING IN THE SHOW. RECAP ON THE PODCAST. YOU KNOW EXACTLY WHERE TO FIND IT.
GOOD LUCK TO ENGLAND, FOR THOSE OF YOU THAT ARE SUPPORTING. GOOD LUCK TO ALL THE OTHER TEAMS PLAYING THIS WEEKEND.
2024-07-14 17:14