Bloomberg Technology 08/10/2023
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: -- ED: I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE IS OFF. IT IS THESE CAPITAL SPENDING AND PRODUCTION COSTS LOWER-THAN-EXPECTED.
WE WILL BRING YOU ALL OF THE DETAILS. PRESIDENT BIDEN IMPOSES LIMITS ON U.S. INVESTMENTS IN CHINA. ALIBABA RETURNS TO GROWTH ACROSS ALL OF THE MAIN DIVISIONS, DEFYING CHINA'S ECONOMIC TURBULENCE. WE WILL TAKE A DEEPER LOOK AT THE SUPREME COURT RULING IN THE EPIC CASE SIDING WITH APPLE, AT LEAST FOR NOW. THE OTHER BIG STORY WAS INFLATION, GAINING 0.2% LAST MONTH. THE SLOWEST PACE OF GAINS FOR
TWO YEARS. THE MARKET STARTS THINKING ABOUT THE FED AND THEN SAYS MAYBE THE FED WILL SKIP A RATE HIKE IN THE NEXT MEETING. WHY DO WE CARE ABOUT THE FED? HIGHER RATES DISCOUNT THE VALUATIONS FOR FUTURE CASH FLOWS FOR NAMES ON THE NASDAQ 100. THE MAIN TEXT -- THE MAIN TECH INDEX OUTPERFORMING BUT WE ARE BASICALLY TREADING WATER. THE OTHER BIG RISK AS IT IS BITCOIN. WE ARE THE SAME LEVEL WE HAVE
OUT FOR TWO WEEKS. THE U.S. 10 YEAR YIELD CLIMBING BACK UP. REMEMBER THE STORY WE KEEP REITERATING. YIELDS HAVE BEEN COMING SLIGHTLY LOWER FROM 4.2% ON THE 10 YEAR TO NOW NERO TOOK -- NOW
NEARER TO 4%. THE EARNINGS STORY IS DISNEY. SO MANY STORIES IN IT. RAISING PRICES FOR STREAMING. THE LOSS ON THE STREAMING MUST ERROR THAN FORECAST. THIS IS THE BOB IGER EFFECT. SPENDING THIS YEAR BE $27
BILLION FOR CONTENT INSTEAD OF THE 30 BILLION THEY USUALLY SPEND. THAT IS SOMETHING THE MARKET REACTED TO AS WELL AS THE FINANCIAL FORECAST THEY GAVE. LET'S GET TO OUR MEDIA AND ENTERTAINMENT EDITOR CHRIS PALMERI WHO JOINS US FROM LOS ANGELES. WHAT WERE SOME OF THE OTHER KEY TAKEAWAYS FROM THAT DISNEY PRINT? CHRIS: THE BIG HEADLINE AS THEY HAVE IMPLEMENTED THE BIG COST-CUTTING EFFORT. IT IS DOVETAILING WITH THE WRITERS AND ACTORS STRIKE SO THEY ARE SAVING MONEY ON PRODUCTION. COMPANIES ARE SPENDING TOO MUCH ON CONTENT.
THE LOWER-THAN-EXPECTED LOSSES ON STREAMING, PEOPLE CALL THAT GOOD. DRAMATIC PRICE INCREASES FOR THE DISNEY PLUS AND HULU SERVICES AS THEY TRY TO GET TO PROFITABILITY NEXT YEAR IN STREAMING AS THEY PROMISED. ED: YOU MENTIONED THE LOSS, A HALF $1 BILLION, 512 MILLION ON THE STREAMING BUSINESS. YOUR GO IT WAS $1 BILLION. DISNEY PLUS SUBSCRIBERS FELL 7.4% IN THE QUARTER BUT THE
MAIN STORY IS DISNEY PLUS HOT STAR. EXPLAIN WHAT HAPPENED. CHRIS: THEY LOST THE STREAMING RIGHTS TO INDIA PREMIER CRICKET LEAGUE WHICH WAS A BIG DEAL. A BIG SURVIVOR IN INDIA AND A COUPLE OTHER COUNTRIES.
YOU ARE SEEING THE IMPACT OF THAT FOR A FEW QUARTERS. A DRAMATIC DECREASE IN SUBSCRIBERS LOCALLY. ED: WHAT DID BOB IGER AND CO. SAY ABOUT THE WRITERS AND ACTORS STRIKE AND HOW THAT WILL IMPACT THE CONTENTS LATE? CHRIS: IT WAS WOVEN INTO THE $3 BILLION IN CONTENT REDUCTION. THEY DID NOT SPECIFY HOW MUCH WAS DUE TO THE STRIKES AS MUCH AS AN OVERALL REDUCTION IN SPENDING.
IT IS A SIGNIFICANT ENOUGH NUMBER AND WE HAVE SEEN SIMILAR NUMBERS FROM ALL OF THE BIG MEDIA COMPANIES IN RECENT WEEKS. BILLIONS OF DOLLARS IN SAVINGS AS THEY DON'T HAVE TO MAKE NEW TV SHOWS AND FILMS RIGHT NOW. ED: CHRIS PALMERI. THE OTHER BIG NEWS IS DISNEY RACING STREAMING PRICES. IT IS A 27% HIKE FOR THE AD FREE VERSION OF DISNEY PLUS.
GOES TO $14 A MONTH FROM $11. LET'S KEEP THE CONVERSATION GOING. ROSS GERBER, AN INVESTOR IN DISNEY. THAT IS A LOT TO TAKE IN. IT IS VERY RARE YOU SEE FOUR RED HEADLINES ON THE BLOOMBERG TERMINAL FROM A SINGLE EARNINGS REPORT. WHAT WAS THE MAIN POINT FOR YOU? ROSS: THE MAIN POINT IS WHAT YOU'VE BEEN FOCUSED ON, RIGHTSIZING THE AMOUNT OF SPENDING DONE IN HOLLYWOOD WITH THE REVENUE COMING IN FROM DIRECT TO CONSUMER SOURCES. THEY STARTED OUT IN A RACE FOR SUBSCRIBERS SIMILAR TO ONLINE GAMBLING. LOTS OF ACQUISITION COSTS.
NOW THE BUSINESSES HAVE MATURED AND THEY HAVE ALMOST 200 MILLION PLUS SUBSCRIBERS. WHEN YOU LOOK AT THE BUSINESS THEY ARE VERY CLOSE TO PROFITABILITY. THESE ARE THE CHANGES THAT NEED TO BE MADE.
WHEN YOU LOOK AT NETFLIX PROFITABILITY WITH OVER $3.5 BILLION FREE CASH FLOW AND GROWING, WHAT THE POTENTIAL IS FOR DISNEY EVEN IF THEY DO NOT HAVE SUBSCRIBERS IS TO SEE PROFITS FROM THE STREAMERS INTO THE NEXT YEAR. ED: FOR THE BENEFIT OF OUR AUDIENCE, I AM LOOKING AT THE BLOOMBERG TERMINAL. YOU HAVE AROUND 150,000 DISNEY SHARES ON JUNE 30. YOU ARE A BIG BOB IGER FAN. HAS YOUR PERCEPTION OF HIM AND HIS JOB CHANGED BASED ON WHAT YOU HEARD LAST NIGHT? ROSS: NOT THAT HIS JOB HAS CHANGED.
HE HAS A VERY CHALLENGING JOB BUT HE HAS THE HELP I WAS HOPING HE WOULD WITH KEVIN MAYER AND JOHN SACHS. I KNOW KEVIN MAYER AND I AM ALWAYS IMPRESSED BY HIS ABILITY GET PROJECTS DONE IN HOLLYWOOD. I SEE BOB IGER MAKING A MOVE ON CANDLE MEDIA AND BRINGING THESE EXECUTIVES BACK INTO THE FOLD. THE BIG NEWS ABOUT ESPN GETTING INTO THE GAMBLING BUSINESS, THEY KICKED PORTNOY OUT AND THEY ADDED ESPN. THIS WAS A HUGE WIN FOR ESPN, BUT GETTING OUT OF THE CONSUMERS IN A MEANINGFUL WAY AND ULTIMATELY -- A SPORTS APP THAT COULD RIVAL ANY APP OUT THERE. THERE ARE SOME EXCITING THINGS BUT ULTIMATELY BOB IGER NEEDS TO FOCUS ON CONTENT.
THEY NEED GOOD MOVIES. WHAT BOB IGER'S MAIN GOAL IS BESIDES CUTTING COSTS IS IMPROVING CONTENT. ED: THERE ARE TWO COMPETING FORCES FOR THEY TRY TO HAVE COST DISCIPLINE AND REDUCE CONTENT SPENDING. THE CONTENTS LATE IS IMPACTED BECAUSE OF THE STRIKES. PEOPLE WANT GOOD STUFF TO WATCH. HOW DOES DISNEY GET THE BALANCE RIGHT, MAKING SURE THEY HAVE THINGS THAT GET EYEBALLS WITHOUT OVERSPENDING? ROSS: THE MOVIE BUSINESS IS VERY HIT AND MISS AND THERE IS NO REAL FORMULA FOR SUCCESS. OVER THE YEARS DISNEY HAS HAD A GREAT RUN OVER ITS LONG-TERM AND FINDING TREMENDOUS TALENT.
WHAT IS HAPPENING WITH THE STRIKE, AND WE ARE HOPING THE STRIKE ENDS AT THE END OF THE SUMMER. ONCE EVERYONE IS DONE WITH THEIR VACATION THEY WILL REALIZE THEY NEED TO MAKE MONEY AGAIN. I THINK THE STRIKE WILL END SOON AND WE WILL NOT SEE TOO MUCH OF AN IMPACT. THERE BEEN SO MUCH CONTENT MADE, NONE OF US HAVE SEEN CLOSE TO ALL OF IT.
THIS IS WHAT THE WRITERS AND ACTORS ARE MISCALCULATING, AND MAYBE THERE IS A SHORT-TERM EFFECT OF THEIR STRIKE, BUT THERE IS SO MUCH CONTENT IN THE HOPPER, THERE IS INTERNATIONAL CONTENT, THEY ARE EVEN GREEN LIGHTING INDEPENDENT PROJECTS. 100 PRODUCTIONS GREENLIGHTED BY SAG DURING THE STRIKE AND SOME OF THEM ARE FOR BIG STREAMERS. THE STRIKE IS POSTURING IN THE INDUSTRY AFTER AN AMAZINGLY PROFITABLE PERIOD OF TIME. THESE COMPANIES NEED TO MAKE MONEY. IT IS A BAD TIME FOR A STRIKE AND NEED TO CUT COSTS AND DO WHAT IS NECESSARY. IT IS A CHANGING TIME AND WE
ARE SEEING IT IN TECHNOLOGY AND ENTERTAINMENT AS WE RIGHT SIZE IN THE POST-PANDEMIC ERA. ED: MICHAEL MORRIS, AN ANALYST AT GUGGENHEIM WHO COVERS THE COMPANY ASKED BOB IGER ON THE CALL WHAT ARE THE CHANCES OF A BIG TECHNOLOGY COMPANY BUYING DISNEY. BOB IGER SAID I'M NOT GOING TO COMMENT ABOUT THAT. THE RUMOR HAS BEEN THERE FOR SO LONG. WHAT YOU THINK ABOUT THAT?
ROSS: I THINK IF APPLE -- ED: I DID NOT SAY APPLE. ROSS: I THINK APPLE WOULD'VE BOUGHT NETFLIX AND TESLA AND THEY HAVE HAD SEVERAL ATTEMPTS AT DISNEY AND THEY SHOULD TAKE THIS ATTEMPT BUT THEY ARE NOT GOING TO. APPLE IS NOT THAT COMPANY. I THINK THE ONE TO LOOK AT IS AMAZON AND GOOGLE. I THINK THE FUTURE OF ENTERTAINMENT WILL BE LED BY TECH GIANTS, NOT MEDIA GIANTS. AS WE SEE THIS TRANSITION,
THERE IS A HIGH LIKELIHOOD SOMEBODY MIGHT BID FOR ALL OR PARTS OF DISNEY. THAT SAID I THINK THE COMPANY IS FINE THE WAY IT IS. YOU NEED TO FIX THE PROBLEMS YOU HAVE WHICH ARE FIXABLE AND THE STOCK HAS TREMENDOUS VALUE FOR LONG-TERM INVESTORS DESPITE POOR PERFORMANCE. IF YOU LOOK AT THE 10 YEARS BEFORE IT HAS BEEN A PHENOMENAL PERFORMER UNDER BOB IGER. WE HAVE HAD A STEP BACK AND I THINK IT IS TIME FOR INVESTORS, IT IS IN THE TOP 15 HOLDINGS FOR US AND I AM A LONG-TERM INVESTOR IN DISNEY AND I AM NOT PLANNING ON CHANGING THAT. ED: REALLY QUICK ON THE TECH PERSPECTIVE. DISNEY WAS TALKING ABOUT HOW
THEY HAVE THE TECHNOLOGY TO ASSESS PASSWORD SHARING AND GOING INTO THE NEXT YEAR IT WILL BE MORE OF A PRIORITY. THAT WAS A FACTOR FOR NETFLIX. HOW DO YOU THINK ABOUT PASSWORD SHARING IN THE CONTEXT OF DISNEY PLUS? ROSS: I WAS SURPRISED HOW SUCCESSFUL NETFLIX WAS TO GETTING USERS TO SIGN UP WITH A PASSWORD SHARING AND HAVE LITTLE BACKLASH, I THOUGHT THEY COULD HAVE SEVERE BACKLASH. IN HINDSIGHT IF THE CONTENT IS GOOD PEOPLE WILL PAY FOR IT. THE DEBATE OVER WILL PEOPLE PAY FOR X AND SOCIAL MEDIA PLATFORMS VERSUS PAYING FOR ENTERTAINMENT PLATFORMS LIKE NETFLIX OR DISNEY PLUS. WHAT WE ARE SEEING IS PEOPLE
WILL PAY AND WE HAVE THE TECHNOLOGY TO HOLD PEOPLE ACCOUNTABLE. THAT IS A WIN-WIN FOR ALL INVOLVED STOP AT THE BEGINNING IT SERVED EVERYBODY BUT NOW IT DOESN'T. ED: ROSS GERBER, PRESIDENT AND CEO OF GERBER KAWASAKI.
COMING UP ON BLOOMBERG TECHNOLOGY, WHAT PRESIDENT BIDEN'S EXECUTIVE ORDER MEANS FOR CHINA TECH IN THE U.S. TECH CENTER. WE WILL TALK ABOUT THAT WITH JOANNE FEENEY. THAT IS COMING UP NEXT. THIS IS BLOOMBERG.
ED: JOE BIDEN ENACTED AN EXECUTIVE ORDER YESTERDAY ON BASING RESTRICTIONS ON CHINA'S TECH SECTORS, FOR EXAMPLE QUANTUM TECH AND AI SYSTEMS. THIS WILL RESTRICT COMPANY'S ABILITY TO DEVELOP NEXT-GENERATION MILITARY AND SURVEILLANCE TECHNOLOGIES AND COULD THREATEN U.S. NATIONAL SECURITY. LET'S BRING IN JOANNE FEENEY, PARTNER AND PORTFOLIO MANAGER AT ADVISORS CAPITAL MANAGEMENT. YOU HAVE A GLOBAL VIEW AND WE KNOW YOU AS SOMEONE WITH A LONG HISTORY WITH THE CHIP SECTOR. THE CHIP SECTOR AS A TARGET OF THIS INITIATIVE. WHAT IS YOUR REACTION TO THE EXECUTIVE ORDER? JOANNE: THIS IS YET ANOTHER MOVE BY THE U.S.
GOVERNMENT OVER THE LAST MANY YEARS TO TRY TO LIMIT THE FLOW OF TECHNOLOGY TO CHINA. FOR MANY YEARS WE BASICALLY GAVE OUR TECHNOLOGY AWAY BY LOOKING THE OTHER WAY WHEN CHINA WAS ACQUIRING TECHNOLOGY THROUGH DUBIOUS MEANS, THROUGH TRADE RELATIONS, THROUGH MANUFACTURING OPERATIONS. NOW AT THE PREVIOUS ADMINISTRATION AND THIS ONE, THE PROFESSIONALS WITHIN THOSE DEPARTMENTS ARE TRYING TO CURTAIL THAT AND THIS IS ANOTHER WAY. BY RESTRICTING VENTURE CAPITALISTS ABILITY TO MAKE NEW INVESTMENTS IN CHINA AND PRIVATE EQUITY'S ABILITY TO MAKE NEW INVESTMENTS THE HOPE IS NOT THE DEPRIVATION OF THAT MONEY WILL SLOW CHINA INNOVATION. IT IS MORE THE STOPPING OF THOSE PEOPLE PROVIDING HELP TO THOSE COMPANIES. IT IS NOT REALLY ABOUT THE
MONEY INVOLVED BECAUSE IT IS VERY LITTLE AS THE WHOLE OF CHINA INVESTMENT IN NEW TECHNOLOGY. ED: YOU MAKE A GOOD POINT THAT IS SO RELEVANT TO THE BLOOMBERG TECHNOLOGY AUDIENCE THAT THIS IS A RESTRICTION ON PRIVATE CAPITAL AUDIENCE. AS A PUBLIC MARKET INVESTOR DOES IT SOUR THE ATTRACTIVENESS OF ANY OF THE CHINESE ADRS THAT TRADE ON U.S. EXCHANGES? JOANNE: THERE ARE A LOT OF REASONS TO BE CONCERNED ABOUT SPECIFIC CHINESE ADRS. WE RECOGNIZE THE POLITICAL TENSION BETWEEN THE U.S. AND CHINA IS NOT LIKELY TO EASE ANY TIME SOON AND THAT DOES HELP GUIDE THE INVESTMENTS WE ARE WILLING TO MAKE IN CHINA AND OTHER PARTS OF ASIA. IT DOES NOT DISCOURAGE US
ENTIRELY. OUR INTERNATIONAL GROUP IS ON THE GROUND LOOKING FOR IDEAS. IN OUR BALANCE STRATEGY WE STILL LIKE TAIWAN SEMICONDUCTOR DESPITE THE POLITICAL RISKS WE ACKNOWLEDGE ARE OUT THERE. TAIWAN SEMICONDUCTOR SERVES THE
GLOBAL DEMAND FOR SEMICONDUCTORS AND THEY ARE AT THE LEADING EDGE OF ADVANCED MANUFACTURING AND THEY SERVE SO MANY U.S. DESIGNERS OF CHIPS AND THEY ARE AN INTEGRAL PART OF THAT, FROM NVIDIA TO AMD TO BROADCOM AND OTHERS. ED: LATER IN THE SHOW WE WILL TALK ABOUT TOKYO ELECTRON, WHICH IS A JAPANESE SHIP YOUR MAKER. THEY ARE GETTING A LOT OF DEMAND FROM CHINA BECAUSE AT THE SAME TIME CHINA IS TRYING TO REACT TO THIS. THINK ABOUT SOME OF THE NAMES WE ARE INTERESTED IN.
NVIDIA HAS CIRCUMVENTED THE OTHER RESTRICTIONS BY PRODUCING A LOW-POWER GPU. WHAT IS YOUR PERSPECTIVE ON HOW U.S. TECHNOLOGY NAMES WHO WANT TO DO BUSINESS IN CHINA CAN GET AROUND SOME OF THESE EXECUTIVE ORDERS. JOANNE: FOR A WHILE I THINK COMPANIES
LIKE NVIDIA AND AMD WILL CONTINUE TO SELL TO CHINA. AS NVIDIA HAS DONE THEY WILL HAVE TO SELL LESS CAPABLE CHIPS THAN ELSEWHERE IN THE WORLD. AS YOU SAW NOT JUST WHAT TOKYO ELECTRON SAID ABOUT THE CONTINUED DEMAND FOR EQUIPMENT INTO CHINA, CHINA WILL WANT TO BUILD UP ITS OWN SEMICONDUCTOR MANUFACTURING CAPABILITIES, ENCOURAGED BY ALL OF THESE RESTRICTIONS, NOT JUST FROM THE U.S. BUT FROM EUROPE.
IN ADDITION WE SAW THAT ACCORDING TO THE FINANCIAL TIMES NVIDIA IS RECEIVING $5 BILLION WORTH OF ORDERS FROM CHINESE COMPANIES BECAUSE THEY ARE AFRAID THE RESTRICTIONS WILL ONLY GET MORE SEVERE. CHINA REMAINS AN OPPORTUNITY EVEN IF THEY ARE CONSTRAINED. THEY WILL WANT TO GET AS HIGH LEVEL CHIPS AND AS HIGH-LEVEL EQUIPMENT IN THE SEMICONDUCTOR INDUSTRY AS THEY POSSIBLY CAN. IT IS PRETTY CLEAR CHINA HAS BEEN MAKING ITS OWN INVESTMENTS IN DESIGN CAPABILITIES, IN MANUFACTURING CAPABILITIES. A LOT OF THE PEOPLE THEY HAVE ON STAFF HAVE BEEN TRAINED IN THE U.S. AND HAVE WORKED FOR U.S. COMPANIES.
THEY HAVE A LOT OF KNOWLEDGE TO WORK WITH. ED: ON ANY METRIC OR SCALE YOU LIKE, WHAT IS YOUR ASSESSMENT ON THE HEALTH OF THE U.S. CHINA RELATIONSHIP? WHERE DO WE STAND? JOANNE: ON A SCALE OF ONE TO 10, ONE BEING LEAST HEALTHY, I WOULD SAY WE ARE AROUND 83. IT IS NOT A GOOD PLACE -- WE ARE AROUND A 3. IT IS NOT A GOOD PLACE BECAUSE OF OUR GOALS IN THE U.S. TO PREVENT CHINA FROM CREATING MILITARY CAPABILITIES THAT WOULD BE A THREAT TO US ARE IN CONFLICT WITH CHINA GOALS.
IN THAT LEVEL OF TENSION, I'M NOT AN EXPERT, BUT I DO NOT SEE THAT LEVEL OF TENSION EASING. FROM EVERYTHING I'VE READ THAT WILL NOT GET BETTER. CAN WE COOPERATE OUTSIDE OF THOSE AREAS? YES, AND WE SHOULD HOPE FOR THE SAKE OF OUR COMPANIES AND OUR CONSUMERS WHO BENEFIT FROM GETTING CHEAPER GOODS OUT OF CHINA THAT THE RESTRICTIONS DO NOT SPREAD BEYOND THOSE ESSENTIAL AREAS THAT IS NEEDED FOR OUR SECURITY. CLEARLY THAT IS THE CASE. LOOK AT WHAT OTHER COMPANIES CONTINUE TO BE ABLE TO SELL, WHETHER IT IS TOKYO ELECTRON OR APPLIED MATERIALS. THERE ARE STILL PLENTY OF OPPORTUNITY IN CHINA.
IT IS JUST A LOWER MARGIN NOW THAN IT WAS BEFORE. ED: THE U.S. CHINA RELATIONSHIP ON A 3/10 ON THE JOANNE FEENEY SCALE. GOOD TO CATCH UP ON BLOOMBERG TECHNOLOGY. COMING UP, VIRGIN GALACTIC JUST LAUNCHED ITS FIRST FLIGHT TO PRIVATE SPACE TOURISTS. ALL OF THE DETAILS NEXT. THIS IS BLOOMBERG. ♪ ED: CHINESE CHIPMAKERS ARE SPEEDING UP INVESTMENTS IN MATURE SEMICONDUCTOR EQUIPMENT AS THE U.S. AND ITS ALLIES TIGHTEN EXPORT
CONTROLS TO CUT HSTECH EDGE -- TO CUT ASIA'S TECH EDGE. IT IS IN STRONG INVESTMENT IN CHINA AND WINNING NEW CUSTOMERS ACCORDING TO THE NAME TOKYO ELECTRON EDIT CEOS. ALIBABA RETURNING TO GROWTH ACROSS ITS MAIN DIVISIONS, THIS IS THE FIRST STEP FORWARD TO A LONG-AWAITED COMEBACK AFTER MORE THAN A YEAR. CHINA'S ONLINE SHOPPING LEADER
REPORTING THE BETTER-THAN-EXPECTED 14% RISE IN REVENUE DURING THE QUARTER WHEN THE WORLD'S NUMBER TWO ECONOMY STRUGGLED TO GAIN MOMENTUM AFTER YEARS OF COVID ZERO RESTRICTION. SHARES UP MORE THAN 5% IN U.S. TRAINING. LET'S HEAD TO SPACE. >> 3, 2, 1. RELEASE. ED: THAT IS THE FIRST SET OF PRIVATE TOURISM PASSENGERS EMBARKING ON THE RIGHT OF A LIFETIME TO OUTER SPACE ON VIRGIN GALACTIC'S SPECIAL COMMERCIAL SPACEFLIGHT. SHOWING US IS BLOOMBERG NEWS REPORTER ON ALL THINGS SPACE LAUREN GRESH. 20 YEARS LATER VIRGIN GALACTIC GETS TOURISTS INTO SPACE. GIVE US THE DETAILS.
LAUREN: IT HAS BEEN LEADING TO THIS MOMENT. I KNOW I SAID THIS DURING THE LAST FRIGHT -- LAST FLIGHT BUT THIS IS THE ONE THAT SENT TOURISTS TO SPACE AND THAT IS THE ONE -- THAT IS THE REASON VIRGIN GALACTIC WAS FOUNDED IN THE FIRST PLACE. ONE OF THE PASSENGERS HAS BEEN WAITING ALMOST TWO DECADES. HE HAS HAD HIS TICKET THAT LONG AND FINALLY GOT TO MAKE GOOD ON THAT PROMISE THAT VIRGIN GALACTIC MADE FOR HIM. THIS IS WHY IT WAS SUCH A BIG
MOMENT CAPPING OFF DOES GATE DECADES -- TWO DECADES OF DEVELOPING FOR THE COMPANIES AND CAPPING OFF IT WILL BE MONTHS FOR THE TOURISTS HEREAFTER. ED: ORIGINALLY TICKET PRICES WERE $250,000. THEY CLOSED THEM WHEN THEY PUT A PAUSE ON OPERATIONS. ON BOARD WE HAD THREE CUSTOMER TOURISTS ASTRONAUTS. TWO OF THEM WERE NOT PAYING CUSTOMERS.
THEY WON THESE TICKETS IN A CHARITY DROP. LOREN: THAT IS CORRECT. ONLY JOHN WAS ONE OF THE ORIGINAL TICKETHOLDERS. ED: AND HE COMPETED AT THE 1972 OLYMPICS. WHAT WE KNOW ABOUT THE CADENCE OF LAUNCHES? HOW DO THEY GET GOING. LOREN: THE IDEAL IS TO DO MONTHLY LAUNCHES FROM HERE OUT SO WE SHOULD SEAT ONE OF THE FLIGHTS GO INTO SPACE FOR THE FORESEEABLE FUTURE.
VIRGIN GALACTIC WANTS TO HAVE A SUPPORT ASTRONAUT ON BOARD TO GUIDE THE PASSENGERS ALONG. ON THESE FLIGHTS WE SHOULD SEE ABOUT THREE TICKETHOLDERS GET TO FINALLY FULFILL THEIR DREAM OF SEEING SPACE. THAT IS A BIG DEAL BECAUSE AS FAR AS WE ARE AWARE THE COMPANY HAS A BACKLOG OF 800 CUSTOMERS THAT HAVE BEEN HOLDING ONTO TICKETS FOR MANY YEARS. ED:
BLOOMBERG SPACE CORRESPONDENT LOREN GRUSH. THANK YOU VERY MUCH. GOOD TO SEE A POSITIVE REACTION. YOU'RE ON BLOOMBERG TECHNOLOGY WE WILL TALK MORE ABOUT THE SUPREME COURT RULING. SARAH OH LAM JOINS US ON BLOOMBERG TECHNOLOGY.
FROM SAN FRANCISCO, THIS IS BLOOMBERG. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. APPLE IS A KEY NAME WE ARE WATCHING IN THE MARKETS.
WE ARE TREADING WATER. COMPLETELY FLAT ON THE STOCK. REMEMBER THE HEADLINE BROKE DURING BLOOMBERG TECHNOLOGY THAT IN THE CONTEXT OF APPLE U.S. SUPREME COURT IS ALLOWING THE IPHONE MAKER TO KEEP ITS APP STORE PAYMENT RULES IN PLACE FOR THE TIME BEING, DISMISSING A REQUEST FROM EPIC GAMES THAT WOULD HAVE LET DEVELOPERS DIRECT IPHONE USERS TO OTHER LOWER-PRICED ALTERNATIVE STORES ONLINE. REMEMBER THE CONTEXT. THE NINTH U.S. CIRCUIT COURT OF APPEALS HAD SIDED WITH EPIC AND SAID APPLES APP STORE RULES CONTRAVENED CALIFORNIA COMPETITION LAW.
WHAT THE SUPREME COURT IS DOING IS INTERVENING, SAYING FOR THE TIME BEING EPIC'S REQUEST, WHICH WAS TO ALLOW USERS TO BE REDIRECTED TO OTHER STORES HAS BEEN REJECTED. APPLES EXPECTED TO APPEAL THE DECISION BUT IF THE JUDGES WILL NOT HEAR IT IS EPIC ANYWAY. WE HAVE TO DISCUSS WITH THIS MEANS FOR EPICS PROCESS OF ENFORCING THE RULE AND BRING IN SARAH OH LAM. THAT WAS A LOT. IT IS A DIFFICULT ONE TO EXPLAIN. WHAT DOES THE SUPREME COURT INTERVENTION MEAN AT THIS STAGE? SARAH: ADJUSTED KAGAN -- JUSTICE KAGAN DENIED AN APPLICATION BY EPIC TO OVERTURN THE STATE. -- THE STAY.
BASICALLY THE FEDERAL APPELLATE COURT SAID APPLE DOES NOT NEED TO LIFT ITS ANTI-STEERING PROVISIONS. BASICALLY THE BUTTONS, EXTERNAL LANES WERE OTHER CALLS TO ACTION THE DIRECT CUSTOMERS TO ALTERNATIVE PERKS USING MECHANISMS IN THEIR APP STORE. THEY DO NOT NEED TO LIFT THAT RESTRICTION.
EPIC CHARGES DEVELOPERS LOWER FEES ON THEIR OWN APP STORE SO THEY WANT A WAY TO TELL FOLKS YOU CAN CLICK THIS BUTTON TO GO TO OUR STORE. THAT IS WHAT IS AT ISSUE. ED: THE APPEALS COURT HAS PUT ITS DECISION ON HOLD SO APPLE HAS TIME TO FILE A SUPREME COURT APPEAL LATER IN THE YEAR. THE RULING KICKS IN IF THE JUSTICES REFUSED TO HEAR THE CASE. WHAT IS THE TECH POLICY INSTITUTE BIG PICTURE STANCE ON THIS BATTLE AND THE IDEA AT THE HEART OF IT. SARAH: IT IS ABOUT THE STATE LAW , CALIFORNIA'S UNFAIR COMPETITION LAW IT IS FOCUSED ON THE ANTI-STEERING -- CAN OTHER COMPANIES PUT LINKS IN APPLES APP STORE TO SAY YOU CAN CLICK THIS CLICK -- CLICK THIS LINK TO GO TO ANOTHER STORE.
THERE ARE OTHER ITEMS THAT ARE IN ANOTHER TRIAL WITH EPIC VERSUS GOOGLE COMING UP THIS FALL. THAT WILL BE INTERESTING TO WATCH. WHAT IS INTERESTING TO ME IS LOOKING AT EPIC AND FORTNITE. EPIC HAS THREE DIFFERENT LINES OF BUSINESS. IT IS A MULTIBILLION DOLLAR COMPANY THAT IS A GAME DEVELOPER AND ALSO AN APP STORE. ALSO A DISTRIBUTOR. WHAT IS INTERESTING IS TO SEE HOW THESE APP STORES ARE COMPETING IN THE COURTS. SARAH:
THE TECHNOLOGY -- ED: THE TECHNOLOGY STORIES ABOUT DEVELOPERS AND THE APP STORE. DO YOU SEE ANY MERIT IN APPLES ARGUMENT WHICH IS THAT IT IS A RELIEF TO DEVELOPERS. APPLE FEEL LIKE THEY ARE GIVING A LOT OF BUSINESS AND VISIBILITY OPPORTUNITY WITH THE RULES SUCH AS THEY ARE.
SARAH: PERSONALLY, I THINK IT MAKES SENSE THAT APPLE WOULD SAY ON THEIR OWN APP STORE WE DO NOT WANT LINKS TO OTHER APP STORES COMPETING WITH US. ON THAT POINT IT MAKES SENSE THAT A STORE WOULD NOT WANT TO BE ABLE TO PROMOTE OTHER STORES AND THEIR OWN STORE. THAT IS WHAT IS AT ISSUE. THERE ARE OTHER CLAIMS AND
OTHER LAWSUITS AND THE TWO OTHER CLAIMS EPIC MADE AT TRIAL WERE DENIED, WERE FAILED. WHAT IS AT ISSUE IS THE DISCLOSURE ROLE, THE ANTI-STEERING RULE, AND CALIFORNIA'S UNFAIR COMPETITION LAW. THERE WAS A 16 DAY BENCH TRIAL, THERE WERE DOZENS OF WITNESSES, 900 EXHIBITS. THEY THOROUGHLY WENT THROUGH ALL OF THE DIFFERENT CLAIMS. THE ONLY ONE THAT SURVIVED ARE THE BUTTONS OR LINKS TO OTHER STORES.
THAT IS A VERY CONTAINED QUESTION. WHAT IS INTERESTING IS THE APPEAL APPLE MIGHT FILE OR WILL FILE WITH THE SUPREME COURT RAISES INTERESTING FEDERALISM ISSUES AND SO THAT WILL BE GOOD TO WATCH. ED: LOVE HAVING YOU ON THE SHOW. YOU HAVE SUCH A DEEP KNOWLEDGE.
I APPRECIATE YOU DO NOT HAVE A CRYSTAL BALL. WHAT WILL BE THE OUTCOME IF THE JUSTICES CHOOSE NOT TO HEAR THE SUPREME APPEAL? WHAT ARE THE OTHER AVENUES EITHER PARTY CAN GO DOWN? SARAH: IT SOUNDED LIKE WE WILL HAVE TO WAIT AND SEE WHAT APPLE FILES IN THEIR APPEAL. IT SOUNDED LIKE THEY WILL RAISE QUESTIONS ABOUT KINNE RULING ON A STATE LAW AFFECT PARTIES OUTSIDE OF THE LAWSUIT. THAT WILL BE AN INTERESTING QUESTION TO ASK. WHEN IT COMES TO THE ECOSYSTEM OF GAMING, I THINK THERE ARE A LOT OF QUESTIONS ABOUT ANTITRUST THEORY AND COMPETITION IN THE MARKETPLACE THAT ARE UNANSWERED AND ARE GOOD TO GO THROUGH TO LOOK AT THE NUMBERS. WE WILL BE WATCHING THE TRIAL AS WELL TO SEE HOW MUCH COMPETITION IS THERE IN THIS MARKETPLACE AND IT MAKES SENSE FOR GAMING PLATFORMS TO HAVE RULES. ED:
THIS IS EPIC'S RESPONSE TO THE SUPREME DECISION. "THE RESULT WILL BE TO INJURE NOT ONLY EPIC BUT INNUMERABLE CONSUMERS AND OTHER APP DEVELOPERS FOR A SIGNIFICANT PERIOD OF TIME." WHAT IS YOUR RESPONSE TO EPIC'S POSITION ON THIS? SARAH: MY QUESTION WOULD BE HOW CAN YOU MEASURE INJURY? THEY HAVE TO PROVE LOSSES AND THAT IS A COUNTERFACTUAL. IT IS NOT CLEAR TO ME THERE WOULD BE A LOT OF LOSSES. PEOPLE KNOW THEY CAN GO OUTSIDE OF DIFFERENT STORES TO REACH FORTNITE AND EPIC CONTENT. THEY CAN GO TO THE EPIC APP STORE THEMSELVES.
IT IS A MATTER OF DISCOVERING WHAT THAT NUMBER IS, HAVING EXPERTS WEIGH IN AND DOING ECONOMIC ANALYSIS. ED: SARAH OH LAM, THANK YOU FOR COMING HERE ON BLOOMBERG TECHNOLOGY AND REACTING TO WHAT HAS BEEN A BIG STORY. COMING UP, IS IT A GOOD TIME TO EXPAND YOUR INVESTMENTS OUTSIDE OF THE U.S.? THAT HAS BEEN THE QUESTION OF THIS PROGRAM. WE WILL TALK FROM THE VENTURE-CAPITAL PERSPECTIVE WITH CHRISTINE TSAI, CEO OF 500 GLOBAL. THAT IS NEXT. THIS IS BLOOMBERG.
ED: AMID THE FLOOD OF BIG TECH LAYOFFS IS BECOMING HARDER THAN EVER TO TRY A COMBINATION OF -- BLOOMBERG ORIGINALS HOST EMILY CHANG SAT DOWN WITH Y COMBINATOR CEO TO TALK ABOUT THE STATE OF MARKETS. EMILY: WE ARE SEEING TENS OF THOUSANDS OF PEOPLE GETTING LAID OFF FROM TECH COMPANIES. HOW DOES THIS PLAY OUT? >> A LOT OF LARGE COMPANIES STARTED TREATING THEIR EMPLOYEE BASE AS A PLACE TO PARK RESOURCES AND HAS A COMPETITIVE MODE VERSUS THE OTHER GIANTS. WHEN I THINK ABOUT THE MEN OF TALENT LOCKED UP IN CUSHY JOBS THAT COULD'VE HAVE BEEN OUT THERE IN THE MARKET MAKING NEW TECHNOLOGY, PUSHING THINGS FORWARD I AM HOPING A LOT OF THEM COME OVER TO STARTUPS AND THEY REALIZE THIS IS WHAT IT IS LIKE TO RUN FAST AGAIN. EMILY: WHAT IS YOUR ADVICE FOR WORKERS GETTING LAID OFF. IT DOES SOUND TRITE TO SAY IT IS TIME TO BUILD. GARY:
SOME OF IT IS TAKE STOCK. GETTING MORE CONNECTED WILL LEAD TO DIRECT ACCESS TO BUILDING EQUITY, BUILDING BUSINESSES THAT REALLY MATTER. EMILY: FOR YEARS TECH WORKERS HAVE BEEN PAID IN STOCK AND THAT WAS THE TICKET. YOU ARE TAKING A RISK ON THIS COMPANY, IT COULD BE WORTH ZERO OR WORTH MILLIONS.
WE ARE SEEING THE DARKSIDE OF RSU'S NOW. YOU THINK THAT IS STILL THE WAY IT SHOULD WORK IN SILICON VALLEY? EMILY: THAT IS SOME OF THE MAGIC -- GARY: THAT IS SOME OF THE MAGIC OF STARTUPS. THIS IS ABOUT LABOR BEING ABLE TO ACCESS CAPITAL AND THIS IS ONE OF THE MOST DIRECTS. SOME OF THE BAD BEHAVIOR WE START FROM STARTUP FOUNDERS IS TRYING TO REACH FOR THAT BILLION-DOLLAR VALUATION BECAUSE THEY WANTED THE HEADLINE OUT THERE SAYING THEY ARE A UNICORN BUT THAT COMES AT A COST. THE FOCUS ON VALUATION AND GETTING THE NEXT NOTCH OF VALUATION COMES AT GREAT PERSONAL COST TO THE FOUNDERS THEMSELVES, BUT ALSO TO THE EMPLOYEES. EMILY:
WHAT YOU THINK NEEDS TO CHANGE? GARY: SOME OF IT IS HAPPENING. THE REVALUATION OF STARTUPS IS HAPPENING AND IT WILL CONTINUE. PEOPLE WILL BE MORE AND FIND -- MORE MINDFUL OF DO I NEED TO DO THAT 50 TO $200,000 RAISE. ED: WATCH MORE OF THE CIRCUIT WITH EMILY CHANG TONIGHT OR STREAM IT AT 8:00 EASTERN ON BLOOMBERG ORIGINALS. LET'S STICK WITH THE VENTURE-CAPITAL STORY. LET'S BRING IN CHRISTINE TSAI, THE FOUNDING PARTNER AND CEO OF 500 GLOBAL. A MULTISTAGE VENTURE-CAPITAL FIRM. THE BIG STORY OF THE SHOW HAS
BEEN PRESIDENT BIDEN EXECUTIVE ORDER ON LIMITING U.S. INVESTMENT PRIVATELY INTO MAINLAND CHINA. I DO NOT THINK 500 GLOBAL DOES INVEST INTO MAINLAND CHINA BUT WHAT IS YOUR REACTION TO THAT EXECUTIVE ORDER? CHRISTINE: IT MAKES ME REFLECT TO THE EARLY DAYS OF 500. WE JUST CELEBRATED OUR 13TH ANNIVERSARY.
TO GO BACK TO 2010, VERY DIFFERENT ERA IN SILICON VALLEY AND TECHNOLOGY. WHAT HAS EVOLVED OVER THE LAST 13 YEARS IS HUGE GROWTH IN VENTURE FUNDING, TECH PENETRATION WORLDWIDE, BUT ALSO THIS INTERSECTION BETWEEN TECH, VENTURE, AND POLICY. THIS WILL ONLY INCREASE. 500 GLOBAL, WE ARE NOT ACTIVE IN CHINA. OUR FOCUS HAS BEEN INVESTING
U.S. AND GLOBALLY AND THAT MEANS WHAT WE HAVE REFERRED TO AS THE RISE ECONOMY. 25 OF WHAT WE SEE IS THE LARGEST GROWING ECONOMIES IN MARKETS LIKE INDONESIA, MALAYSIA, TURKEY, AND WE HAVE SEEN GREAT OPPORTUNITIES. ED: AT THE HEART OF THE BIDEN STORY ARE THE MERITS AND BENEFITS OF INVESTING IN U.S. TECH VERSUS INTERNATIONAL MARKETS. SOME OF THOSE COUNTRIES YOU
LISTED, WHAT IS IT ABOUT THEM THAT MAKES THEM ATTRACTIVE AS A VENTURE BACKED INVESTMENT INTO A FOUNDER OR MULTISTAGE? CHRISTINE: EARLY ON WE BEGAN INVESTING IN THE U.S., BUT OUTSIDE OF THE U.S. SINCE 2010. TODAY OUR PORTFOLIO IS MORE THAN 2000 COMPANIES. ABOUT HALF OF THAT PORTFOLIO IS NON-US. WHAT WE HAVE SEEN IS THESE ARE VERY LARGE ECONOMIES, FAST-GROWING FROM POPULATION GROWTH AS WELL AS GDP GROWTH. WE TOOK A BAT THAT BECAUSE OF THE MANY TRENDS WE WERE SEEING IN TECHNOLOGY, IF YOU REMEMBER 2010 STOP ONLINE PLATFORMS LIKE GOOGLE, META, TWITTER, MOBILE WAS REALLY TAKING OFF. ALL OF THIS WOULD MAKE IT MUCH MORE COST-EFFECTIVE AND THE BARRIER TO START A COMPANY WOULD COME DOWN.
AS A RESULT WE WOULD START SEEING A LOT OF BIG OPPORTUNITIES. THIS IS OUR BELIEF THAT IT CONTINUES TO HOLD TRUE AND FOR US WE WILL CONTINUE TO DEEPEN THAT EXPOSURE. ED: YOU SOUND VERY BUSY. I MEAN THAT KINDLY. WE HAVE A NUMBER OF VC'S THAT ARE NARROWLY FOCUSED ON EARLY STAGE OR THE GROWTH STAGE OR THE FIRM I HAVE ONE EARLY-STAGE FUND OR GROWTH STAGE FUND.
2800 PORTFOLIO COMPANIES IN 80 COUNTRIES MULTISTAGE. JUST FROM AN INDUSTRY PERSPECTIVE HOW DO YOU MANAGE THAT? CHRISTINE: FROM THE EARLY DAYS A LOT OF THE VISION WAS TO FIND GREAT OPPORTUNITIES, GREAT FOUNDERS IN ALL CORNERS OF THE WORLD. OUR ROOTS ARE CERTAINLY AN EARLY STAGE AND THAT CONTINUES TO BE AN AREA WE ARE VERY ACTIVE IN. A LOT OF THE OPPORTUNITY WE SAW IS A LOT OF THESE MARKETS HAVE FOUND GENERATED A NUMBER OF OUTCOMES. WE HAVE HAD A GREAT OPPORTUNITY BECAUSE OF THE EARLY RELATIONSHIPS WE HAVE ESTABLISHED WITH FOUNDERS FROM EARLY ON AS ONE OF OR THE FIRST INSTITUTIONAL BACKER TO FOLLOW THE FOUNDERS JOURNEY AND HELP BACK THEM. FOR US IT IS IN LINE WITH THE ORIGINAL VISION AND THESIS BUT WE ARE EXCITED TO KEEP SUPPORTING THE FOUNDERS IN ALL CORNERS OF THE WORLD WHERE THEY MAY NEED IT MORE IN TERMS OF THE DEVELOPMENT OF THE VENTURE ECOSYSTEM. ED:
WE SHOWED SOME OF YOUR PORTFOLIO COMPANIES A MOMENT AGO. THE STORY OF 2023 HAS BEEN ARTIFICIAL INTELLIGENCE. ARE YOU FOCUSED ON AI NATIVE COMPANIES WERE AI ADJACENT STARTUPS THAT WANT TO JUMP IN AND GAIN BENEFIT FROM THE TOOL OF GENERATIVE AI OR A LARGE LANGUAGE MODEL? CHRISTINE: IT IS NEVER A DULL MOMENT AS IT RELATES TO AI AND AGAINST THE STARK BACKDROP OF THE MACRO MARKETS AND VALUATIONS FALLING AND FUNDING DROPPING. FOR US BECAUSE WE HAVE OUR ROOTS IN INVESTING IN A LARGER NUMBER OF COMPANIES ACROSS A NUMBER OF SECTORS, ONE OF THE BIG BENEFITS OF THAT, AND AN ADVANTAGE FOR US IS TO BE ABLE TO SPOT WHAT WE SEE OUR EMERGING INNOVATION, NOT JUST IN THE U.S. BUT IN ALL CORNERS OF THE WORLD. AS IT RELATES TO AI, WE HAVE BEEN INVESTING IN COMPANIES IN THE AI SPACE FOR A NUMBER OF YEARS AND AS WE SEE THE UPTICK IN TERMS OF COMPANIES, THEY ARE GOING AFTER THE AI TECH STOCK WERE AI ADJACENT OR GOING AFTER EXISTING SECTORS FROM NAI PERSPECTIVE. WE DEFINITELY ARE LOOKING AT ALL OF THOSE OPPORTUNITIES AND WRITING INVESTMENTS. WHAT IS UNIQUE FROM OUR
PERSPECTIVE IS THIS IS NOT JUST A SILICON VALLEY STORY. OFTEN TIMES WHAT WE HAVE SEEN IN THE EARLY DAYS IS CERTAIN BUSINESS MODELS WILL START IN THE U.S. AND THEN WE SEE THEM HAPPEN IN OTHER PARTS OF THE WORLD. FOR AI IT IS HAPPENING PARALLEL IN MANY MARKETS. ED: CHRISTINE TSAI, 2800 PORTFOLIO COMPANIES. THAT IS GLOBAL REACH. COMING UP, IS AI SLIDING INTO YOUR ONLINE DATING DM'S.
HOW SOME APPS ARE TRYING TO FLIRT AND MIMIC YOU TO FIND YOUR NEXT DATE. IT ALL WILL BE REVEALED NEXT. ED: ONLINE DATING CAN BE JUST AS TOUGH AS DATING AND PURSING. FROM GHOSTING AND HARASSMENT TO CHATS THAT DO NOT LEAD TO DATES.
NOW AI STARTUPS THAT HELP SOLVE THAT ISSUE. YOU HAVE BEEN REPORTING ON SPECIFIC APPS THAT ARE TOLD TO HELP IN DATING. WHAT ARE THEY PURPORTING TO BE ABLE TO DO. >> MY COLLEAGUE AND I DOWNLOADED THREE RELATIVELY NEW APPS MARKETED TO BE AI DRIVEN. THIS IS BEYOND APPS LIKE TINDER
AND HINGE. THESE ARE THINGS LIKE GHOSTING. GHOSTING IS WHEN YOU ARE MATCHES IGNORE YOU AND ANY PATIENT MATCHES THAT ARE NOT GOOD MATCHES WS. ED: I MET MY WIFE ON A DATING APP. SOME OF THE FUNCTIONALITY IS TO MIMIC YOU. EXPLAIN HOW IT WORKS. YOU TESTED IT OUT. >> ABSOLUTELY. TEASER AI GETS RID OF THE
SMALLTALK AND JUMPS TO THE PART WHERE YOUR CHATBOT TALKS TO HER MATCH SO THEY HAVE FULL LICENSE OVER YOUR CONVERSATION AND THEY WILL BREAK THE ICE WITH QUIRKY CONVERSATIONS. TO OUR EXTENT WE FOUND A LOT OF THEM WERE FALSE FACTS ABOUT OURSELVES. ED: ONE DEBATE FOR THE INDUSTRY IS THE COST OF DATING APPS. BUT WHEN I USED WAS FREE BUT THERE IS A PREMIUM ELEMENT. TO THESE APPS COST? WHAT ARE THE FEES INVOLVED? >> LIKE OTHER TRADITIONAL APPS THERE IS A FREE SUBSCRIPTION AND A PREMIUM SUBSCRIPTION. PREMIUM A INCLUDES THINGS LIKE
BETTER MATCHES, MORE MATCHES, OR FINDING OUT WHY PEOPLE DID NOT LIKE YOU. THESE RANGE FROM FOUR DOLLARS TO $60 A MONTH. ED: THE BIT WE GOT HUNG UP ON IS THE MIMICKING AND FLIRTING. IS IT REALISTIC THE EXPERIENCE? DOES IT COME ACROSS AS A HUMAN.
>> WE FOUND THEY WERE VERY AWKWARD. SOMETIMES THE AI WOULD SEND AVATAR PICTURES OF THEMSELVES THEY WERE VERY AWKWARDLY POSED. I WOULD NOT THINK THERE WAS A HUMAN BEHIND IT. SOME PEOPLE SEEM TO LIKE IT. THERE IS ALSO THE BREAKUP BUDDY APP, WHICH WILL GUIDE YOU THROUGH THE SELF JOURNEY WHEN A ROBOT BREAKS YOUR HEART. ED:
THIS IS AI IRL RIGHT HERE ON BLOOMBERG TECHNOLOGY. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. TOMORROW WILL BE JOINED BY THE CEO OF A DRIVERLESS CAR COMPANY CRUISE. A LOT OF NEWS COMING OUT IN THE
SELF-DRIVING SPACE. WE ARE STILL WAITING FOR THE REAL DEAL. SOMETHING WE TALKED ABOUT. IT HAS BEEN A MEGA WEEK. EARNINGS HAVE BEEN A BIG PART OF THE STORY. DON'T FORGET YOU CAN RECAP
EVERYTHING WE HAVE TALKED ABOUT. THE BIG EMPHASIS ON JOE BIDEN'S EXECUTIVE ORDER WHEN IT COMES TO INVESTMENT IN CHINA. CHECK OUT THE PODCASTS ON APPLE, SPOTIFY, AND I HEART AND ALSO ON THE BLOOMBERG PLATFORM. ONE DAY TO GO. FROM SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY.
2023-08-11 15:31
