Looking for bad actors in AI | 'Bloomberg Technology' Full Show (06/27/2023)
>> FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BIRD TECHNOLOGY WITH CAROLINE HYDE AND KEN LUDLOW. ED: I'M HERE IN SAN FRANCISCO AND CAROLINE IS OFF TODAY. THIS IS BLOOMBERG TECHNOLOGY. LORDSTOWN FILES FOR BANKRUPTCY AS THEY DEAL WITH FOXCONN UNRAVELING WE WILL BRING DETAILS ON THAT DEVELOPING STORY. AND WE WILL TALK A AND REGULATION WITH AN M.I.T. RESEARCHER WHO SAT DOWN WITH PRESIDENT BIDEN ON HIS TRIP TO SAN FRANCISCO. WE WILL GET HER TAKEAWAYS AND
HOW THE GOVERNMENT PLANS TO TACKLE THE BOOMING TECHNOLOGY. PLUS, WE SIT DOWN WITH FAMED VENTURE CAPITALIST GARY TAN WITH AN EXCLUSIVE INTERVIEW TALKING ABOUT INVESTING AND HOW HIS FIRM IS INVESTING IN BUILDING BACK THE BAY AREA. LET'S GET A CHECK ON THE MARKETS STARTING IN THE EQUITY MARKET. WE ARE REBOUNDING WHEN IT COMES TO THE TECHNOLOGY SECTOR. THE NASDAQ 100 IS UP BY MORE THAN ONE PERCENTAGE POINT BUT A FOLLOWS THE BIGGEST TODAY DECLINE GOING BACK TO MARCH AREA THE BIGGEST WEEKLY DROP GOING BACK TO MARCH AS WELL FOR THE S&P 500. THE U.S. 10 YEAR YIELD IS UP BY AROUND TWO BASIS POINTS.
A LOT OF NEWS FLOW WE WILL GET TO SHORTLY AROUND BITCOIN WITH REPORTS OF FIDELITY PROPPING UP BITCOIN AND THAT IS PUSH THE MAIN ASSET HIGHER, CURRENTLY 30,000, $500. IT BRIEFLY BEAT -- BREACH $3100 BUT THE ONE WE ARE FOCUSED ON IS THE SPIN OFF, BITCOIN CASHES THE HIGHEST LEVEL IN MORE THAN ONE YEAR, UP 0.7%. WE WILL GET INTO THEWHY BECAUSE IT'S BEEN AN ASTONISHING RUN. IN THE TECHNOLOGY SECTOR, WE'RE THINKING ABOUT LORDSTOWN. A CHAPTER 11 FILING, DOWN 37% NOW AND WE ARE TRADING IN THE STOCK HAD BEEN HALTED. THE RELATIONSHIP WITH FOXCONN
WHICH IS A CONTRACT MANUFACTURER AND WOULD BUILD THEIR ELECTRIC VEHICLES, THAT RELATIONSHIP IS DISINTEGRATING. LET'S GET DETAILS WITH SEAN O'GRADY. WHAT IS THE LATEST WHEN IT COMES TO LORDSTOWN? >> WE'VE KNOWN THIS WAS COMING FOR A WHILE. NOW IT IS HERE. LORDSTOWN MOTORS IS SAYING FROM THE MINUTE THEY STARTED INKING THESE CONTRACTS WITH FOXCONN TO BUILD VEHICLES, THAT IT WENT SOUTH. FOXCONN STARTED RENEGING ON SOME OF PROMISES AND IT WASN'T LIVING UP TO ITS FUNDING MILESTONES AND THEY WERE BASICALLY NOT SHOWING UP TO MEETINGS IN THE LORDSTOWN CEO WENT TO TAIWAN TO GET SOME INFORMATION ON THE VEHICLES THEY WANTED TO BUILD TOGETHER AND WAS VISIBLY GHOSTED. THIS IS A RELATIONSHIP THAT HAS BEEN DETERIORATING PRETTY QUICKLY OVER THE PAST HALF YEAR OR SO WE STARTED TO SEE SIGNS OF THAT IN MAY WHEN LORDSTOWN STARTED MAKING NOISE ABOUT REGULATORY FILINGS.
NOW IT'S OUT THERE IN FULL VIEW. ED: IS THIS THE END FOR LORDSTOWN? THEY HAVE KIND OF RELIED ON FOXCONN TO BUILD THEIR ENDURANCE ON THEIR BEHALF DO THEY HAVE OTHER OPTIONS TO MOVE FORWARD? >> THEY'VE BEEN SAYING FOR MONTHS THAT THEY NEED THEIR OUTSIDE PARTNER WHICH I LOOKED AT AS A PRETTY BIG CLAIM CONSIDERING FOXCONN WAS POST A CONTRACT MANUFACTURING FOR THESE DEALS A COUPLE OF MONTHS AGO AND SAY WE STILL NEED MORE HELP FROM ANOTHER OEM. IT WAS A BIG SIGN THAT FOXCONN WAS PROBABLY NOT UP TO SNUFF SO LORDSTOWN INC.
IT CAN FIND A WAY THROUGH ENDS WILL STILL TRY TO OPERATE THE CORE ASPECTS OF THE BUSINESS AND KEEP THE LIGHTS ON WELL IT GOES THROUGH CHAPTER 11 AND USE THAT RESTRUCTURING PROCESS TO GET MORE SOLID FOOTING TO FIGHT FOXCONN IN THIS LAWSUIT THAT WAS FILED TODAY. WE WILL SEE. HAVE THEY DEVELOPED ANYTHING OVER THE LAST THREE OR FOUR YEARS? WHAT WOULD ATTRACT A BUYER OR A PARTNER THEY BEEN LOOKING FOR? THEY HAVEN'T FOUND ANYBODY YET. ED: IT'S A GREAT POINT. I STARTED THIS YEAR AT CES IN LAS VEGAS. I DROVE THE CEO AROUND FOR ABOUT AN HOUR. THERE WAS A TRUCK. AT LEAST IT WAS AN EARLY PROTOTYPE WHAT IS THE WIDER STORY HERE. WE HAVE VIEWED LORDSTOWN AS ONE
OF THE STARTUPS THAT WE WERE NOT SURE ABOUT. WHAT IS THE VIABILITY OF THEIR BUSINESS AND THEIR TECHNOLOGY? >> THE HISTORY OF THE COMPANY AND THE STORY THEY WERE TRYING TO TELL WAS ALWAYS VERY TANGLED. YOU THINK BACK TO 2019 THE FACT THAT THEY BOUGHT THE COMPANY FROM GENERAL MOTORS WHERE THE FACTORY FROM GENERAL MOTORS THAT THEY WERE SUPPOSED TO BE OPERATING IN AND IT WAS ANNOUNCED BY PRESIDENT TRUMP IN A TWEET AND HE GOT WRONG OUT OF THE GATE. HE SAID WORKFORCE WOULD BE BUYING THE FACTORY THIS COMPANY HAS SPUN OUT OF WORKFORCE AND THERE WAS THIS WEIRD RELATIONSHIP. IT WAS LICENSING IP TO BUILD THIS VEHICLE BUT IT WAS SORT OF THIS TORTURE PRODUCT. THEY WERE ABLE TO GET TO THE POINT WHERE THEY WERE MAKING A FEW OF THEM WITH FOXCONN BUT THEY NEVER GOT TO THE POINT WHERE THEY COULD GET THAT COST UNDER THE MSRP THEY WERE TRYING TO PROMISE. EVEN THAT HAD GONE UP OVER TIME.
THEY WERE ORIGINALLY TARGETING A LOWER MS P AND GOT TO THE POINT WHERE THEY HAD A VEHICLE BUT IT WAS NEVER GOING TO SCALE. THEY NEAR THE OUTSIDE HELP BECAUSE OX GONE IS NOT ABLE OR WILLING TO LIVE UP TO ITS END OF THE BARGAIN. LOOKING FORWARD, ASIDE FROM WHAT WILL HAPPEN IN LORDSTOWN, IT IS VEGAN ABOUT WHAT FOXCONN WILL TRY TO DO FOR EV'S IN THE U.S.. THEY HAVE BIG PLANS FOR THAT PLANT IN OHIO BUT ANOTHER TENANT AT ITS MERGER DISSOLVED EARLIER THIS MONTH.
PFISTER HAS DELAYED ITS SECOND VEHICLE WITH FOXCONN SO THAT'S THREE OUT OF FOUR PARTNERS ALREADY THAT ARE SEEING TROUBLE WITH FOXCONN IN THAT BUILDING. ED: SEAN O'KANE ON THE -- ON ONE OF THE TOP STORIES ON BLOOMBERG TECHNOLOGY THIS TUESDAY. THE OTHER ACTIVITY WE ARE SEEING IS IN THE CRYPTO SPACE. U.S.-BASED PAYMENTS CIRCLE WATCHING RATED GOOD TORY -- WATCHING REGULATORY DEVELOPMENTS IN KOREA. WE SAT DOWN WITH THE CHAIRMAN
AND CEO TO DISCUSS. >> ALL AROUND THE WORLD, EVERY MAJOR MARKET, STABLECOIN LAWS ARE COMING INTO PLACE AND WHAT THAT SIGNIFIES IS THAT THIS KIND OF CURRENCY, THESE FIAT LINKED DIGITAL CURRENCIES ARE ABOUT TO BECOME A PART OF THE MAINSTREAM GLOBAL FINANCIAL SYSTEM. ED: ELSEWHERE, WE SEE ACTIVITY IN BITCOIN AND BITCOIN CASH. SOANLI BASAK IS HERE.
CRYPTO CASH HAS DOUBLED IN VALUE OVER SEVEN DAYS. IT'S KIND OF A SPIN OFF, WHY, WHAT IS HAPPENING? SONALI: BITCOIN CASHES IN FIXED SUPPLY AND IS NOW BEING TRADED ON THE NEW EXCHANGE THAT WAS STARTED BY THE BACKING OF THE CITADEL SECURITIES AND FIDELITY AND LARGE PLAYERS ON WALL STREET. YOU SEE SOME ACTIVITY HERE AND THEY ARE TRADING ONLY ASSETS. FOR BITCOIN IN THE LAST SEVEN DAYS, IT'S RISEN LESS THAN 13% BUT BITCOIN CASH HAS RISEN ALMOST 113%.
A MEANINGFUL RISE THERE. IT IS NOT TRADED AS WIDELY AS BITCOIN IS IN PARTICULAR SO YOU WOULD SEE A BIGGER JUMP THEN YOU WOULD SEE AT BITCOIN WHICH IS THE LARGEST CRYPTOCURRENCY AND IS TRADING AT MORE THAN $30,000. THAT 30,000 LEVEL, WE HAVE BEEN THERE FOR ABOUT A WEEK OR SO SINCE WE HAVE SEEN BLACKROCK FILING FOR A SPOT ETF, GIVING MORE INSTITUTIONALISM OR TO SOME OF THESE TWO ASSETS. ED: SPEAKING OF THIS, THE HEADLINE THAT CAUGHT MY EYE WAS THE BLOCK REPORTING THAT FIDELITY IS PREPARING TO SUBMIT A BITCOIN ETF FILING.
IF YOU LOOK AT THE MOVEMENT HERE, SONALI: YOU SAY SIGNIFICANT RISE IN BITCOIN INTO THE BLACKROCK ISLAND. THE BLOCK REPORTING FIDELITY GIVES YOU ANOTHER BIG INVESTING GIANT BEHIND THE WEIGHT OF CRYPTO AND THE IDEA THAT THERE COULD BE SUPPORT EVEN FROM U.S. REGULATORS TO GET THIS DONE IN FULL FORM AREA WE HAVE PLENTY OF ETS WHEN IT COMES TO THE FUTURE MARKETS DESK THE FUTURES MARKET IN THE CRYPTO WORLD BUT TO HAVE THIS MUCH INSTITUTIONAL SUPPORT BEHIND A SPOT ETF SHOWS YOU THAT PERHAPS THE BIGGEST OF WEALTHY GIANTS ARE HEADING ON THE BANDWAGON HERE WHEN IT COMES TO CRYPTO AND THE IDEA OF GETTING REGULATORY SUPPORT BEHIND IT.
WE KNOW THERE ARE MANY APPLICATIONS ON THE SIDELINES HERE. AT WHAT POINT TO THOSE BECOME REALITY AND HOW MUCH MORE MONEY CAN THAT REALLY DRIVE TO THE SYSTEM? ED: KRITI: ED: THANK YOU SO MUCH. THE BIDEN ADMINISTRATION IS TAKING STEPS TO BETTER UNDERSTAND AND REGULATE ARTIFICIAL INTELLIGENCE. WE WILL TALK TO AN AI RESEARCHER ABOUT THE PANEL AND GET HER VIEW ON THE RISKS AND REWARDS OF USING AI, AN INTERESTING REACTION TO THE CONVERSATION WITH PRESIDENT BIDEN. WE ARE ALSO WATCHING SHARES OF SNOWFLAKE.
THEY ANNOUNCED AN AI RELATED PARTNERSHIP WITH NVIDIA THAT WILL ENABLE BUSINESSES TO CREATE CUSTOMIZED GENERATIVE AI APPS USING THEIR OWN PRIVATE DATA. IT'S HAVING A POSITIVE EFFECT TO THE UPSIDE. HERE'S WHAT THE RBC HAD TO SAY ABOUT THE NASDAQ EARLIER TO DAY. THIS IS BLOOMBERG.
>> I WOULD STILL STICK WITH TECH NAMES. I THINK THE NASDAQ IS GETTING A LITTLE OVERBOUGHT. IF YOU LOOK AT THE CFTC, WE ARE HITTING NEW HIGHS ON THE NASDAQ. I DON'T THINK YOU HAD TO THROW ALL THE GROWTH STOCKS OUT OF THIS POINT. A SECTOR LIKE COMMUNICATION SERVICES WHERE THE INTERNET NAMES ARE, THOSE EARNINGS REVISIONS ARE STARTING TO WANE.
ED: ARTIFICIAL INTELLIGENCE STARTUPS, STABILITY AI HAS LOST AT LEAST EXECUTIVES IN RECENT WEEKS WHICH INCLUDES ITS HEAD OF RESEARCH AND CHIEF OPERATING OFFICER. THE DEPARTURES COME THE SAME MONTH AN ARTICLE IN FORBES CRITICIZE STARTUPS STABILITY. JOINING US TO DISCUSS MORE IS THE PERSON TO BROKE THAT STORY. WHAT DO WE KNOW? >> WE KNOW THAT DAVID HOGG WHO WAS THE STABILITY AI HEAD OF RESEARCH LEFT RECENTLY AND WE ALSO KNOW THATREN ITO WHO WAS THE CHIEF OPERATING OFFICER ALSO LEFT. STABILITY TOLD ME THAT DAVID HAD LEFT IN SOURCES TOLD ME DAVID HAD LEFT ON HIS OWN AND HAD RESIGNED.
STABILITY CEO TOLD ME THAT REN HAD BEEN LET GO. ED: INTERESTING. YOU VERY RECENTLY SPOKE AT THE BLOOMBERG TECHNOLOGY SUMMIT. GIVE OUR AUDIENCE A SENSE OF WHAT'S GOING ON WITH THIS COMPANY. THEY ARE SEEN AS A LEADER IN THE FIELD BUT DESPITE THE NAME STABILITY AI, THERE ARE ISSUES THAT INVESTORS ARE CONCERNED ABOUT. >> THAT'S TRUE. THIS HAS INSPIRED A FEW JOKES
ON TWITTER. IS IT STABLE OR NOT SO STABLE? SOME PEOPLE HAVE HAD SHORT TENURES AT THE COMPANY AND YOU CAN SEE HOW THAT MIGHT CONCERN PEOPLE ON THE OUTSIDE. ON THE OTHER HAND, IT IS TRUE WITH A FAST GROWING COMPANY, YOU MIGHT HAVE SOME EXECUTIVE TURNOVER FOR A BUNCH OF DIFFERENT REASONS. YOU MIGHT WANT TO BEARING IN MORE EXPERIENCED LEADERSHIP OR DIFFERENT LEADERSHIP AND SOMETIMES THINGS DON'T WORK OUT AREA RIGHT NOW, WE'RE LOOKING INTO WHAT REALLY HAPPENED HERE AND WHAT WILL HAPPEN GOING FORWARD. ED: THE LATEST REPORTING FROM BLOOMBERG TECHNOLOGY, WHAT IS HAPPENING IN THE AI SPACE. LET'S TALK ABOUT REGULATION.
THIS IS THE FOUNDER OF THE AVARICE JUSTICE LEAGUE. JUST LAST WEEK, SHE SET WITH PRESIDENT BIDEN TO DISCUSS ARTIFICIAL INTELLIGENCE AND JOINS US NOW FROM NEW YORK. WE WILL GET TO THAT CONVERSATION IN A MOMENT. YOU LISTEN TO WHAT RACHEL HAS TO SAY, HOW DO YOU SEE THE PACE OF INNOVATION NOW IN AI STARTUPS AND DOES IT TROUBLE YOU HAVE QUICKLY SOME OF THESE COMPANIES ARE MOVING AND THEN CHANGING DIRECTION? >> YES, I AM EXTREMELY TROUBLED WITH HOW QUICKLY WE ARE RELEASING GENERATIVE AI SYSTEMS WITHOUT THE TRANSPARENCY TO KNOW WHERE THE DATA IS COMING FROM. ALSO, WE CONTINUE TO SEE DATA BEING TAKEN WITHOUT CONSENT, WITHOUT COMPENSATION. YOU'RE GOING TO CONTINUE TO SEE INCREASING LAWSUITS AGAINST COMPANIES THAT ARE BUILT ON WHAT SOME WOULD SAY IS STOLEN DATA.
YOU HAD META-FACEBOOK SETTLE $650 MILLION WHEN IT CAME TO VIOLATING THE BIOMETRIC INFORMATION PRIVACY ACT OF ILLINOIS. I THINK IT'S EXTREMELY RISKY FOR COMPANIES TO BE BUILDING ON UNSTABLE FOUNDATIONS. ED: DR. JOY, WHAT WERE THE SPECIFICS OF YOUR DISCUSSION WITH PRESIDENT BIDEN? YES, ARTIFICIAL INTELLIGENCE BUT WHAT DID HE WANT TO KNOW? >> I WAS VERY ENCOURAGED BY HOW ENGAGED PRESIDENT BIDEN WAS AT THE ROUNDTABLE. WE STARTED OFF DISCUSSING THE POSSIBILITIES OF AI FOR HEALTH CARE, FOR EDUCATION BUT QUICKLY FOCUSED ON REAL-WORLD HARM OF AI. I FOCUSED ON RACIAL BIAS,
GENDER BIAS AND FALSE MATCHES THAT HAVE LED TO FALSE ARREST AS IN THE CASE OF ROBERT WILLIAMS WHO WAS ARRESTED IN FRONT OF HIS TWO YOUNG DAUGHTERS AND HIS WIFE DUE TO FAULTY AI SYSTEMS. THAT WAS TOP OF MIND I ALSO THINK THERE IS AN OPPORTUNITY FOR THE U.S. TO LEAD ON BIOMETRIC RIGHTS BUT RIGHT NOW, WE ARE GOING IN THE OPPOSITE DIRECTION. LAST WEEK, WE HAD EU LAWMAKERS PUSH FORWARD THE AI ACT WHICH HAS A PROVISION THAT BANS THE USE OF LIVE FACIAL RECOGNITION IN PUBLIC PLACES. WHILE THIS IS HAPPENING, IN THE
U.S., WE HAVE THE TSA ROLLING OUT DOMESTIC FACIAL RECOGNITION AND MOST PEOPLE DON'T EVEN KNOW THAT THEY CAN OPT OUT. THAT'S WHY WE ARE DOING THE TSA SCORECARD TO HEAR FROM TRAVELERS. WAS THERE NOTICE OR CONSENT OR
SIGN IT? WHAT HAPPENED IF TRIED TO OPT OUT ECHO COULD YOU OPT OUT WITHOUT CONSEQUENCES? WE DISCUSSED WHERE THE U.S. COULD LEAD WHERE IT COMES TO BIOMETRIC RIGHTS. ED: DR. JOY, IT'S INTERESTING THE COMPARISON BETWEEN THE EUROPEAN UNION AND WHAT WE SEE IN THE UNITED STATES. DID PRESIDENT BIDEN GIVE YOU AN INDICATION OR PLACE THAT THE U.S. WILL BE MORE ACTIVE IN REGULATING OR AT LEAST ACTING ON A FRAMEWORK IN TERMS OF GUARDRAILS FOR ARTIFICIAL INTELLIGENCE TECHNOLOGY? >> SOMETHING I WAS ENCOURAGED TO SEE LAST YEAR FROM THE BIDEN HARRIS ADMINISTRATION WAS THE RELEASE OF A BLUEPRINT FOR AN AI BILL OF RIGHTS. I THINK THAT'S EXACTLY THE WAY
U.S. SHOULD APPROACH REGULATING AI WHICH IS A RIGHTS-BASED FRAMEWORK. HERE YOU WOULD HAVE SPECIFIC PROTECTIONS AGAINST ALGORITHMIC DISCRIMINATION. THERE WOULD BE NOTICE AND
EXPLANATION. THERE WILL BE PRIVACY WHEN IT COMES TO DATA AND CONSENT. THESE SYSTEMS WOULD HAVE TO BE SHOWN TO BE SAFE AND EFFECTIVE. IN THE CASE OF ROBERT WILLIAMS, THE SYSTEM WAS NOT EVEN AFFECTED. EVEN IF WE HAD MORE EFFECTIVE BIOMETRIC SYSTEMS, THIS COULD LEAD TO MASS STATE SURVEILLANCE WHICH IS NOT THE SOCIETY WE WANT TO HAVE IN THE UNITED STATES. ED:
TELL ME ABOUT YOUR RESEARCH AT M.I.T. WHAT ARE YOU FOCUSED ON? >> MY RESEARCH LOOKS INTO BIAS OF VARIOUS TYPES OF AI SYSTEMS. MOST KNOWN FOR THE GENDER SHADES PAPER WHICH SHOWED RACHEL -- RACIAL AND GENDER BIAS AND COMMERCIALLY SOLD PRODUCTS FROM IBM, MICROSOFT AND LATER ON WE ALSO DID AMAZON AS WELL. WITH THE ALGORITHMIC JUSTICE, WE'RE FOCUSED ON REAL-WORLD HARMS AND HOW OUR PEOPLE ARE EXPERIENCING AI SYSTEMS BEING USED FOR ACCESS TO GOVERNMENT SERVICES. FOR EXAMPLE, WE KNOW THE IRS PUT ON BOARD ID ME AS A WAY OF ACCESSING BASIC TAX INFORMATION.
BUT WE LAUNCHED A CAMPAIGN AND WE HEARD FROM MANY PEOPLE SAYING THEY WERE HAVING SO MANY DIFFERENT ISSUES, NOT JUST FROM THE TECHNICAL SIDE BUT ALSO FROM THE PRIVACY SIDE. WHEN YOU HAVE A COMPANY THAT SAYS TO USE OUR SYSTEM, YOU WAIVE YOUR RIGHT TO SUE BUT THERE IS NO OTHER WAY TO ACCESS THAT GOVERNMENT SERVICE, WE ARE MOVING IN THE WRONG DIRECTION. BUT IT'S NOT TOO LATE TO COURSE CORRECT. ED: THE CORE OF YOUR RESEARCH AND YOUR ROLE IS LOOKING AT THE SOCIETAL RISKS OF AI. HOW DO YOU YOURSELF USE ARTIFICIAL INTELLIGENCE TOOLS? WOULD YOU SAY YOU ARE PRO AI AS A TOOL TO ADVANCE MANKIND? >> I AM OPTIMISTIC ABOUT USING ETHICAL AI SYSTEMS. WHAT I TRIED TO DO IS ASK IF THEY AI SYSTEMS THAT I WOULD LIKE TO USE BASED ON AN ETHICAL PIPELINE AND IF NOT, ARE THERE WAYS WE CAN SHIFT THAT? I AM EXCITED WITH WHAT WE ARE SEEING WITH AI AND HEALTH CARE.
THERE IS A STARTUP CALLED BLUMER TECH WHERE THEY HAVE IDENTIFIED A MAJOR HEALTH GAP WHICH IS ONE IN THREE WOMEN DIE OF CARDIOVASCULAR DISEASE BUT LESS THAN ONE QUARTER OF RESEARCH PARTICIPANTS ARE WOMEN WHEN IT COMES TO ACTUALLY STUDYING THE DISEASE. WE HAD A VERY MALL CENTRIC MODEL -- MALE CENTRIC MODEL OF HEART DISEASE AND DEMEANS WOMEN HAVE WORSE OUTCOMES. THEY HAVE DEVELOPED THIS INNOVATION OF SMART FABRICS THAT CAN GIVE YOU DIGITAL BIOMARKERS. THEY ARE ALSO ADDRESSING THIS DATA GAP BECAUSE THERE IS SUCH A LACK OF DATA IN A COMES TO WOMEN'S HEART HEALTH. THOSE SORTS OF AREAS I'M EXCITED ABOUT THE POSSIBILITIES. WHERE AI IS NOT TAKING AWAY LIVELIHOODS BUT IMPROVING LIFE OUTCOMES. ED:
THANK YOU FOR REFLECTING ON THAT MEETING WITH PRESIDENT BIDEN IN SAN FRANCISCO LAST WEEK, THANK YOU FOR YOUR TIME. COMING UP, BAIDU CLAIMS IT'S AI BOT BERNIE IS BEATING CHET GPT ON KEY MEASURES. DETAILS NEXT, THIS IS BLOOMBERG. ♪ ED: TIME FOR TALKING TECH. INDIA'S BAIDU IS TALKING WITH PROSPECTIVE NEW SHAREHOLDERS FOR A $1 BILLION FUNDRAISING ROUND, SEEKING INVESTORS WHO WANT TO CLIP ITS FOUNDERS CONTROL. THE EDUCATION TECH FIRMS OFFERING THIS TO WIN OVER NEW BACKERS INCLUDING PREFERENTIAL TREATMENT IN THE CASE OF LIQUIDATION. PLUS, THE BAIDU CHATGPT SERVICE CALLED EARNING HAS OUTPERFORMED OPENAI SEMINAL PRODUCTS ON SEVERAL MEASURES IN CHINA.
THAT'S ACCORDING TO A STATEMENT FROM CHINA'S SEARCH LEADER WHO IMPLIES THE LATEST ITERATION OF THE BAIDU FOUNDATION MODEL WON'T COMPETE WITH AI DIRECTLY IN CHINA. META HAS QUADRUPLE THE NUMBER OF COMPANIES USING ITS WHATSAPP IS IN HIS TOOL IN THE PAST THREE YEARS. THE APP NOW HAS MORE THAN 200 MILLION CUSTOMERS UP FROM 50 MILLION IN THE MIDDLE OF 2020, MAKING HEADWAY IN A PUSH TO GENERATE MORE MONEY FROM THE POPULAR MESSAGING SERVICE. COMING UP, WE WILL CONTINUE OUR CONVERSATION ON ARTIFICIAL INTELLIGENCE AND TALK TO AN ENTREPRENEUR IN THE SPACE WAS A FORMER BRIDGEWATER HEDGE FUND EMPLOYEE WHO US NEXT TO DISCUSS THE LAUNCH OF HIS NEW APP QUIVER WHICH USES AI AND THE BLOCKCHAIN FOR DIGITAL IDENTITY. LOADS MORE TO COME ON BLOOMBERG TECHNOLOGY. FOCUSING ON AI FROM SAN
FRANCISCO AND DON'T FORGET GARY TAN IS COMING UP AND THAT'S WHEN YOU DON'T WANT TO MISS. A GLOOMY DAY IN SAN FRANCISCO BUT THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY.
LET'S CHECK IN ON THE MARKETS. THE TECHNOLOGY SECTOR IS POWERING THIS REBOUND WE ARE SEEING IN EQUITIES. THE NASDAQ IS UP BY MORE THAN 1% AND FOLLOWS THE MONDAY SESSION WHICH GIVES THE BIGGEST TODAY DROP ON THE NASDAQ 100 POINT BACK TO MARCH.
EVEN AS BOND YIELDS ARE RUSHING HIGHER, 3.75%, INC. TOOK THE STORY HAS BEEN ABOUT BITCOIN CASH, THIS SPINOFF IN 2017. IT WAS AT A TIME WHEN SOFTWARE ENGINEERS WERE PACKING ON ANYTHING WITH BITCOIN IN THE NAME BEING A SUCCESS BUT HAS BECOME POPULAR IN A 100% GAIN IN 7-9 DAYS. WE CONTINUE TO PUSH HIGHER COME AT THE HIGHEST LEVEL SINCE MAY OF 2022 MORE HEADLINES ARE GIVING ENERGY TO THE CRYPTO SPACE. IN TERMS OF SINGLE NAME OVERS, THERE IS NO HUGE FOCUS ON ANY ONE THEME. WE ARE LOOKING AT PALO ALTO NETWORKS THAT HIT A 3.5% GAIN. THE AI SPACE AND AFTER THE
DOWNSIDE, WE CLAWED BACK SOME OF THE DECLINES AS ALPHABET AND GOOGLE CAME OUT. THEY SAID THIS WAS A STUCK -- A STOCK THAT WAS A WARM HUG BUT IT'S TIME TO SIT ON THE SIDELINES BECAUSE THERE IS A SHIFT THAT COULD IMPACT ITS AD STREAMS IN THE NEAR TERM. THEY ARE SITTING ON THE SIDELINES THAT HOPING TO JUMP BACK IN AND SHARES HAVE BEEN OFF I 0.2% STICKING WITH GENERATIVE A I, MIZULO IS ROLLING OUT AND OPENAI SERVICE, ALLOWING 40,000 EMPLOYED TO TEST AT THE PRODUCT IN ITS CALL. THE FIRM IS SEEKING IDEAS FROM WORKERS IN JAPAN AND HOW TO BEST USE THE TECHNOLOGY. LET'S STICK WITH THE CONVERSATION IN AI.
JOSEPH MILLER JOINS US NOW, THE COFOUNDER AND CHIEF SCIENTIST FOR QUIVER, VENTURE BACKED CONSUMER AT A VALIDATING AND MONETIZING DIGITAL IDENTITY. PRIOR TO THIS, YOU ARE MANAGER AT BRICK WATER AND FOCUSED ON AI SYSTEMS FOR SENIOR MANAGEMENT AND YOU COFOUNDED VIVEN THE FIRST AI RUN PLATFORM FOR TECH COMPANIES. BRIDGEWATER IS A GIANT HEDGE FUND. WHEN YOU HEAR THAT STORY ABOUTMIZUHO ANOTHER FINANCIAL INSTITUTION ON THE GLOBAL SCALE, ROLLING OUT GENERATIVE AI TOWARD ITS EMPLOYEES, WHAT DO YOU THINK? YOU KNOW HOW DIFFICULT THIS DOMAIN IS. >> I THINK GENERATIVE AI DOES A LOT OF THINGS FOR STARTUPS LIKE SERIAL ENTREPRENEUR AND DOING THESE THINGS AND BUILDING PRODUCTS. I THINK IT HAS ENABLED US TO DO THINGS WE OTHERWISE WERE NOT ABLE TO DO AT SCALE BUT ALSO BRAND-NEW TECHNOLOGY. QUIVER IS A SEED COMPANY, SMALL
GROUP TO STARTING OUT AND TO BE ABLE TO DO THIS GENERATIVE AI AT SCALE THAT YOU CAN DO NOW WITH A SIMPLE API KEY IS PRETTY UNBELIEVABLE. IT ALLOWS US TO DO THINGS THAT WAS OTHERWISE PROHIBITED BEFORE. ED: WE WILL TALK ABOUT THE SPECIFIC USE CASE. BUT WHEN YOU LEFT BRIDGEWATER, DID YOU CONSIDER DEVELOPING AN AI PRODUCT FOR THAT FORM THAT COULD BE USED IN THE WORLD OF FINANCIAL MARKETS AND FINANCIAL INSTITUTIONS? >> YES, WHEN I LEFT, IT ALSO STARTED WORKING ON TRADING ALGORITHMS OF MY OWN, MOSTLY BASED IN COST INFERENCE IN THE BIGGEST USE CASE FOR GENERATIVE AI OR RARELYLLM MODELS IS THE SYNTHESIS OF THE AMOUNT OF DATA YOU HAVE TO CRUNCH TO UNDERSTAND THE MARKET. BEING ABLE TO DO THAT AT SCALE
IS A THING THAT IS ONLY BECOME AVAILABLE AND POSSIBLE IN THE LAST FEW YEARS. ED: LET'S GET INTO QUIVER. THE PRIMARY ARTIFICIAL INTELLIGENCE USE CASE IS TO PROTECT THE BADGING PROCESS. WHAT IS THE BADGING PROCESS? >> WE ARE TRYING TO DO SOMETHING A LITTLE DIFFERENT WITH DIGITAL IDENTITY. PEOPLE TEND TO THINK ABOUT DIGITAL IDENTITY ABOUT KNOWING YOUR CUSTOMER. WHAT WE WANTED TO DO WAS FOCUS ON THE MORE HUMAN ASPECTS OF OUR IDENTITY AND CREATE A PLATFORM WHERE PEOPLE CAN AGGREGATE THESE DIFFERENT FACETS THEY HAD ON DIFFERENT PLATFORMS, MUSIC PREFERENCES MIGHT BE IN SPOTIFY, MAYBE HER LIFESTYLE PREFERENCES ARE SOMEWHERE IN A COLLECTION OF INSTAGRAM PHOTOS AND TWITTER TWEETS. WE WANTED TO READ A SPACE WHERE YOU CAN BRING THAT TOGETHER AND REPRESENT YOURSELF MORE HOLLOW STICKLEY. -- MORE HOLISTICALLY.
SOME OF THEM ARE NOT ONLINE IT ALSO HOW DO YOU BRING THAT ONLINE HAVE YOU GET THAT VALIDATED? WE HAVE THE SOCIAL PROTOCOL ALLOWS PEOPLE TO CREATE VIDEOS AND SUBMIT EVIDENCE THAT GETS VOTED ON BY THE COMMUNITY AND YOU GET VALIDATED IN THAT WAY. IF YOU ARE A DOG LOVER, THAT'S A SILLY THING BUT IT'S A BIG ASPECT OF ERIC AMENITY. WHEN YOU PUT THAT NEXT TO YOUR ACCOLADES AND YOU WORKED AT BRIDGEWATER BUT YOU ARE A DOG LOVER, IT MAKES MORE HUMAN. I THINK THAT'S WHAT'S MISSING IS THAT ASPECT OF OUR HUMANITY.
OUR AI USE CASE IS THIS IS OBVIOUSLY VERY DELICATE. WE NEED A LOT OF TRUST IN THIS SPACE. GOING BACK TO THINGS LIKE AGENT MODELS IN AI, IT ALLOWS US TO PROTECT THAT AUSTIN TO CITY AND THAT VALIDATION PROCESS AT SCALE IN A WAY THAT WAS IMPOSSIBLE SIX MONTHS AGO. ED:
A BIG PORTION OF THE BLOOMBERG TECHNOLOGY AUDIENCE ARE DOG LOVERS SO IT'S OK. IT'S BUILT ON GRAPH AI ALGORITHMS, EXPLAIN THE UNDERLYING TECHNOLOGY AND WHAT IS THE DIFFERENCE. >> WHAT WE HAVE IS A SORT OF GRAPHIC THAT CONNECTS THE USERS AND THEIR INTERESTS AND LIKES AND WHAT WE CAN DO IS DO COMMUNITY DETECTION AND FRAUD DETECTION AND LOOK AT BAD ACTORS . IF THERE IS A GROUP OF PEOPLE TAKING OVER SOME NEAT -- NICHE, IF THERE IS THINGS LIKE PREJUDICE, THINGS LIKE PEOPLE TRYING TO DISCRIMINATE IN SYSTEMATIC WAYS, THE GRAPH ALLOWS US TO SUSS THAT OUT AND DETECT BAD ACTORS. ED: JOSEPH MILLER OF QUIVER, FORMALLY BRIDGEWATER, THANK YOU FOR YOUR TIME. COMING UP, THE Y COMBINATIVE SUMMER HAS STARTED AND WE WILL GET THE DETAILS FROM CEO GARY 10 IN AN EXCLUSIVE INTERVIEW COMING UP NEXT. THIS IS BLOOMBERG TECHNOLOGY.
♪ ED: IT'S TIME FOR THE VC SPOTLIGHT AND WE WILL TALK ABOUT Y-COMBINATIVE. THEY HOST TO THREE-MONTH PROGRAMS FOR YEAR IN AN ACCELERATED PROGRAM. ONE PROGRAM RUNS JANUARY-MARCH OF THE OTHER FROM JUNE-AUGUST. THE SUMMER 2023 BATCH HAS
STARTED AND FOR THE FIRST TIME SINCE THE PANDEMIC, THEY ARE HOSTING THE GROUP IN PERSON AND ALL IN THE BAY AREA. 4000 STARTUPS THEY HAVE FUNDED SINCE 2005 AND MANY HAVE BECOME HOUSEHOLD NAMES INCLUDING AIRBNB AND STRIKE. GARY TAN IS THE CEO SO WELCOME TO BLOOMBERG TECHNOLOGY. GREAT TO HAVE YOU HERE IN PERSON.
>> THANK YOU FOR HAVING ME. IN THE EPICENTER OF TECH. ED: THAT IS YOUR MESSAGE TO THIS CLASS, WHY SO INSISTENT THAT THIS GROUP BE HERE IN PERSON? >> Y COMBINATOR FUNDS PEOPLE AT THE EARLIEST POSSIBLE STAGE COME SOMETIMES WHEN IT'S LITERALLY JUST AN IDEA AND THERE ARE COUPLE OF COFOUNDERS. IN ORDER TO GO FROM 0-1 TO CREATE SOMETHING THAT'S NEVER EXISTED BEFORE, THERE IS NOTHING LIKE HAVING THE ENERGY OF PEOPLE IN PERSON, NOT JUST RIGHT NEXT TO EACH OTHER WRITING THE CODE AND SHIPPING IT TO USERS, THAT YOU CAN DO FROM ANY LIVING ROOM OR BEDROOM IN THE WORLD. THERE IS SOMETHING SPECIAL ABOUT HUNDREDS OF FOUNDERS COMING TOGETHER AND HELPING EACH OTHER. THAT'S REALLY WHY WE HAVE BEEN SO SUCCESSFUL OVER A NUMBER OF YEARS. ED:
WE SAY THE BAY AREA BUT THE MESSAGE IS SAN FRANCISCO. >> I THINK SAN FRANCISCO IN PARTICULAR WITH THE AI BOOM IS ABOUT HAYES VALLEY DOWN THE STREET. THERE IS SOMETHING SPECIAL HAPPENING HERE WERE LITERALLY THE FOUNDATIONAL MODELS ON THE OPEN SORES ON THE SMARTEST PEOPLE IN THE WORLD ARE SITTING IN THOSE CAFÉS HAVING DISCUSSIONS NOT JUST ABOUT STARTING THEIR COMPANIES BUT ALSO WHAT IS THE CUTTING EDGE OF WHAT THESE AI MODELS CAN DO. ED: LET'S GET TO THE MECHANICS, THE INITIAL INVESTMENT PLEDGES 500,000 U.S. DOLLARS TO EACH OF THE STARTUPS. THEN A THREE-MONTH PROGRAM GOING THROUGH THE OPERATIONAL SIDE OF THINGS.
WHAT HAPPENS IN THAT TIME? >> THE MOST IMPORTANT THING THAT IS CRAZY TO ME IS THE PEOPLE START THESE COMPANIES ARE THE MOST EMINENT OF ALL OF THE PEOPLE WHO COULD BE STARTING COMPANIES AT THAT MOMENT. WE HAVE MORE THAN 24,000 APPLICANTS FOR ABOUT 240 SPOTS. ED: THAT WAS A RECORD? >> THAT'S RIGHT, OUR ACCEPTANCE RATE WAS JUST UNDER 1% WHICH IS NEVER BEEN AS SELECTIVE AS TODAY. THAT MEANS THOSE PEOPLE IN THAT ROOM ACTUALLY GO ON TO BECOME THE MOST EMINENT PEOPLE IN STARTUPDOM. ED: WHAT DOES THAT DATA REPRESENTS? YOU HAD THE MOST APPLICATIONS ON RECORD AND ARE EXCEPTING THE FEWEST, WHAT DOES THAT TELL YOU ABOUT THE BIG PICTURE OF THIS ECONOMY? >> WE ARE TRYING TO SET THESE FOUNDERS UPPER SUCCESS. IF THERE IS ONGOING HIGH INTEREST RATES, ONE OF THE THINGS WE ARE TRYING TO FOCUS ON IS HOW WE MAKE SURE THE FOUNDERS WE FUND ARE THE PEOPLE WERE MOST LIKELY TO GO ON AND SUCCEED. AND A TIME OF CHEAP CAPITAL,
THAT MEANS MAYBE WE CAN FIND MORE PEOPLE. IN A TIME OF MORE DISTRESS LIKE RIGHT NOW, WE HAD TO BE MUCH MORE MINDFUL OF WHAT THOSE BUSINESSES ARE AND CAN WE SEE GREAT REVENUE AND GREAT GROSS MARGIN AND THAT'S ONE REASON WHY WE LAUNCHED AROTECH COMPANIES ON HER WEBSITE TODAY. ED: I WANT TO GO BACK TO THE MECHANICS BECAUSE WHAT SURPRISES SO MANY PEOPLE WHETHER YOU WERE AN ACCELERATOR OR AN INCUBATOR, IT'S JUST A THREE-MONTH PROGRAM. HOW CAN YOU GET ANYTHING DONE IN THAT TIME? >> THE COOL THING I GET TO DO IS I WORK WITH 12 OF SOME OF MY CLOSEST FRIENDS WHO ARE AS GROUP PARTNERS. THE THING THAT'S DIFFERENT NOW IS THAT AS CEO, I AM ACTUALLY ALSO A PARTNER SO IF 13 PEOPLE WORKING WITH THE COMPANIES. THESE ARE SOME OF THE PEOPLE WHO LITERALLY WORK WITH THESE TOP REVENUE AND TOP VALUATION COMPANIES FROM THE 0-1 STATES, A FEW PEOPLE JUST STARTING OUT. FOR ME, I GOT THE PRIVILEGE OF
WORKING WITH INSTACART OR COINBASE. THESE ARE ALL COMPANIES THAT HAVE GONE AND CHANGE THEIR INDUSTRY BUT ALSO TECH BROADLY. I CANNOT TELL YOU HOW CRAZY IT IS TO MEET PEOPLE WHEN IT'S LITERALLY A YC APPLICATION ON THE WEB. I THINK THAT'S ONE OF THE GREAT INNOVATIONS OF OUR TIME. THE FOUNDER OF YC CAME UP WITH THIS.THERE'S THIS WEBSITE AND ANYONE WITH AN IDEA ANYWHERE IN
THE WORLD ON THE INTERNET CAN APPLY. SOMEONE WILL GO AND READ IT IN OUR COMMUNITY WILL FIGURE OUT IF THIS PERSON SHOULD BE A PART OF OUR COMMUNITY. ED: OF THE 24,000 THAT APPLIED IN THE 240 ACCEPTED, WHAT DO THEY HAVE IN COMMON? PARADOXICALLY, ARE ANY OF THEM NOT AI COMPANIES? >> ONLY 35% OF THE COMPANIES IN THIS BATCH ARE SPECIFICALLY AI FOCUSED. MAYBE HALF OF THEM HAVE SOME AI COMPONENT. YC HAS ALWAYS BEEN GENEROUS AND
THAT'S HOW WE WERE ABLE TO FUND COINBASE YEARS BEFORE ANYONE EVEN HEARD OF BITCOIN. THE KEY MESSAGE HERE IS THAT THE BEST PEOPLE IN THE WORLD CAN CREATE THESE STARTUPS AND ARE THE TECHNOLOGISTS, THE BUILDERS WHO ARE JUST A FEW PEOPLE SO IT'S A FRINGE THING. WHITE SEA TAKES PEOPLE WHO WOULD OTHERWISE BE ON THE FRENCH -- YC TAKES PEOPLE WHO WOULD OTHERWISE BE ON THE FRINGE AND ARE BRILLIANT BUT WE SORT OF TEACH THEM HOW THE PIECES MOVE. WE TEACH THEM CHESS, THE PART OF BUILDING A BUSINESS THAT FRANKLY IS THE EASIER PART TO BEING HIGHLY TECHNICAL AND ON THE CUTTING EDGE OF WHAT'S HAPPENING IN TECHNOLOGY. ED: HAVE YOU ENSURE YOU GOT THE FUNDS TO THE OIL EVERY YEAR FOR TWO PROGRAMS? IS THERE STILL INTEREST IN BACKING YOU? >> ONE OF THE AMAZING THINGS ABOUT YC'S IF YOU LOOK AT THE TOP VENTURE CAPITAL FIRMS, PRE-MUCH ALL OF THEM HAVE AYC COMPANY THAT'S EITHER ON THEIR HOMEPAGE OR OFTEN MULTIPLES THAT HAVE BECOME FUND RETURNERS. ED: THEY ARE BECOMING LP'S AND WHERE ARE YOU GETTING THE FUNDS FROM? >> THE SAME KIND OF LIMITED PARTNERS YOU WOULD EXPECT IN VENTURE CAPITAL AND THAT MAKES SENSE BECAUSE BY C -- BECAUSE YC IS THE FOUNTAIN OF PROSPERITY FOR THIS TYPE OF ACTIVITY IN THE WORLD. ED: TWO PIECES OF NEWS -- WE GOT
THROUGH THE SUMMER OF 2023 AND YOUR PUBLISHING THIS LIST OF THE TOP NET REVENUE GENERATING COMPANIES YOU HAVE BACKED IN 22, PRIVATE OR OTHERWISE. THOSE ARE TWO DIFFERENT SCALES. >> THIS IS NO NEWS TO ANYONE BUT 2021 WAS SUCH AN EXTREME TIME. ONE OF THE THINGS WE BECAME CONCERNED ABOUT BECAUSE WE WANT TO BE A BELLWETHER OF TRYING TO TEACH THE NEXT GENERATION WHAT THEY SHOULD FOCUS ON. THERE WAS THIS OVERRELIANCE ON THINKING ABOUT WHAT MY NEXT ROUND MIGHT BE THE FAST MONEY MEANT YOU WOULD CHASE GROWTH AT ALL COSTS. NOW WE ARE ON THE OTHERS
HANGOVER ABOUT THAT HOW DO WE AS A COMMUNITY PUT FORWARD THE THINGS THAT FOUNDERS AND PEOPLE CREATING THIS TECHNOLOGY, WHAT SHOULD THEY BE THINKING ABOUT ECHO NOW MORE THAN EVER, IT'S ABOUT ROSE MARGIN AND ABOUT NET REVENUE AND ONE OF THE THINGS I'M CALLING IS LITERALLY EDIBLE REVENUE. CAN YOU PAY PEOPLE? CAN YOU PAY SALARIES CAN YOU RUN YOUR OPERATIONS ON THIS REVENUE ECHO LOOKING AT THE DIFFERENT FINANCIAL ACCOUNTING SHENANIGANS PEOPLE PULL, IT'S OFTEN ABOUT HIDING THIS NUMBER. MAYBE WE SHOULD MAKE THIS AN INDUSTRY STANDARD. WHETHER OR NOT IT'S A MARKETPLACE AND THERE ARE LOTS OF DIFFERENT SPECIFIC RULES FOR DIFFERENT COMPS BUT WHAT IS THAT? SHOULD WE JUST USED ONE METRIC THAT WILL ALLOW FOUNDERS TO MAKE THE RIGHT DECISION WHICH IS TO BUILD GREAT, SUSTAINABLE COMPANIES AND KNOW THEY CAN GROW OVER THE LONG-TERM? ED: WE SHOULD TALK ABOUT SAN FRANCISCO AND WHERE TO BUILD FOR THE LONG-TERM. YOUR POSITION ON THIS CITY IS WELL-KNOWN.
AS OF TODAY, WHERE IS YOUR HEAD AT? >> THE GREAT THING ABOUT SAN FRANCISCO TO ME IS IT GAVE ME EVERYTHING I HAVE. I LEARNED CODE IN THE CITY AND TOOK PART IN WEB 1.0 AND I LEARNED MAKING DATABASE WEBSITES. SAN FRANCISCO IN THE BAY AREA
IS THE PLACE THAT IS A MAGNET FOR THE MOST TECHNICAL PEOPLE IN THE WORLD. WHEN YOU HAVE THOSE CONGLOMERATION EFFECTS YOU HAVE ALL THE SMARTNESS AND MOST BRILLIANT AND DRIVEN PEOPLE IN THE WORLD COMING HERE, OR, THEY WILL CREATE WEALTH ED: WE HAVE PROBLEMS THAT WELL -- AS WELL AND YOU'VE ACKNOWLEDGE THAT. HOW MUCH MORE DEEPLY WOULD YOU BE INVOLVED IN CYCLES AND PUTTING MONEY INTO INITIATIVES AND CANDIDATES.
>> SOME OF MY FRIENDS STARTED AN ORGANIZATION CALLED GROWSF. HOW DO WE TAKE SOME OF THE SMARTEST PEOPLE WHO GREETED THIS WELL AND HAD WE HAVE AN IMPACT THAT'S POSITIVE ON OUR LOCAL ECONOMY ECHO WE WANT THAT WEALTH TO BE SHARED WITH EVERYONE. A LOT OF PEOPLE CRITICIZE TECH AND TECH PEOPLE BROADLY AS AYN RAND LIBERTARIAN. WE ARE GENE RODDENBERRY, HE IS OUR SPIRITUAL FUTURE. WE BELIEVE STARFLEET ACADEMY WAS IN SAN FRANCISCO FOR A REASON. WE CONNECT REBUILD SAN FRANCISCO IF WE HAVE THE RIGHT POLICIES AND THE RIGHT POLITICIANS IN PLACE. IN NOVEMBER OF 2024, IF YOU
FOLLOW GROW SF, YOU WILL SEE OUR PLAN TO DO THAT. ED: THE COMMONALITY OF Y, NADER IS YOU ARE THE FIRST INSTITUTION TO WRITE A CHECK. YET TIC HAD MISTAKENLY RELEASED THIS DOCUMENT TO OUR LEAD ORGANIZATION THAT REVEALED THE BACKSTOP ON THE BALANCES EXCEEDING $250,000 AND WAS INCLUSIVE OF SICK WAY IT AND MANY LARGE TECH STARTUPS THAT DIDN'T NEED IT FRANKLY. YOU ARE AN ADVOCATE FOR THAT INITIATIVE IN THE FIRST PLACE ON THE SMALLER SIDE OF THINGS.
WHAT ARE YOUR THOUGHTS ON THAT? >> THE HARD PART ABOUT SVB IS IT HIT THE LITTLE GUY. FOR US,YCS FUNDED OVER 4000 COMPANIES CAN TOP 200 ARE SOME OF THE BIGGEST NAMES YOU CAN THINK OF. THE BACKSTOP WAS REALLY ABOUT SAVING THE TENS OF THOUSANDS OF SMALL AND MEDIUM-SIZED BUSINESSES THAT LITERALLY NOT BE ABLE TO BE PAYABLE. THIS FACTOR COMING UP DOES NOT CHANGE ANY OF THAT. WE WOULD HAVE SETBACK
TECHNOLOGY PERHAPS FIVE YEARS OR A DECADE IF YOU SUDDENLY BUILD AT AN EARLY STAGE OF COMPANY. I HEAR THAT ARGUMENT BUT THE TRUTH REMAINS THAT THEY WERE HUNDRED THOUSANDS OF JOBS THAT WERE SAVED IN THAT MOMENT AND I THINK THE FED AND THE FBI SEE THE PEOPLE IN CHARGE DID THE RIGHT THING. ED: WHEN I THINK IF YOU, I THINK ABOUT BEING INITIALIZED IN YOUR RETURN TOYC IN JANUARY.
YOU ARE THE KEY MEN -- THE KEY MEN AND YOU HAVE COME BACK. HOW DID THAT CONVERSATION GO AND IS NOW ALL ALEXIS? >> ALEXIS LEFT TO START HIS OWN FUND A NUMBER OF YEARS AGO. THE NEW MANAGING PARTNERS ARE BRETT GIBSON AND JANET WILL. THEY DONE A CREDIBLE JOB. THE NUMBER ONE THING I LOVE IS THAT IN VENTURE, THE BEST AND HIGHEST TO ME AS NOT TO ELEVATE A SINGLE PERSON BUT TO CREATE AN INSTITUTION THAT LAST WELL BEYOND ANYONE WHO STARTED THE BUSINESS. I LOOK TO PAUL GRAHAM AND JESSICA LIVINGSTON WHO CREATED YC AND THEY ARE STILL THERE BUT THEY MADE SPACE WHAT IS NOW AN INSTITUTION. I AM MERELY THE STEWARD OF THAT
INSTITUTION GOING FORWARD. ED: IT WAS SO NICE TO HAVE YOU HERE IN SAN FRANCISCO. THIS IS BLOOMBERG. ED: TAYLOR SWIFT STORE IS ON TRACK TO BECOME THE DISTANT CONCERT HISTORY AND CAN POTENTIALLY GROSS OVER $1 BILLION.THAT CONCERT CURRENTLY HELD BY ELTON JOHN, FOLLOWED BY ED SHEERAN. SHE WILL PLATE 106 CONCERTS BY NEXT SUMMER INCLUDING 54 SHOWS OVERSEAS.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. SO MUCH TO RECAP SEDONA OF -- FORGET THE PODCAST WHEREVER YOU GET YOURS. FROM SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY.
2023-07-05 10:45
