Nvidia's Rise to $3T, SpaceX's Fourth Major Test Flight | Bloomberg Technology
>> IN THE HEART OF HER INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED: THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: NVIDIA CONTINUES ITS METEORIC RISE, TOUCHING $3 TRILLION IN MARKET CAP. COVERAGE AHEAD.
>> SPACEX STARSHIP REACH HIS NEW MILESTONE IN HIS FOURTH MAJOR TEST FLIGHT. WE BRING YOU THE DETAILS. >> WE WILL DISCUSS THE LATEST IN CRYPTO AS BITCOIN HOVERS NEAR RECORD HIGHS, LET'S CHECK IN ON THE BROADER MARKETS. A LITTLE BIT OF PROFIT-TAKING TODAY. WE SEE THE ECB IN EUROPE ACTUALLY CUT RATES BUT SIGNAL THAT MAY BE INFLATION PRESSURES ARE HERE TO STAY PRAYED WE HAVE JOBLESS CLAIMS THAT THERE HIGHER THAN ANTICIPATED. AT THE MOMENT WE ARE JUST CAUTIOUS AHEAD OF THOSE NUMBERS TRADING FLAT ON THE NASDAQ.
OFF THE $3 TRILLION MARKET CAP AT THIS MOMENT BUT IT DID IN ECLIPSE THAT. 10 YEAR YIELD PUSHING UP TWO BASIS POINTS. SELLING OFF GLOBALLY AFTER THE ECB DOES CUT BUT WARNS THEY HAVE TO HAVE RESTRICTIVE POLICY, THAT MEANS EURO IS HIGHER VERSUS THE U.S. DOLLAR AT THE MOMENT. WE ARE UP AS WE DON'T
ANTICIPATE RATE CUTS FOR THE ECB PUSHING OUT TO MAYBE SEPTEMBER. A LOOK AT THE WORLD OF CRYPTO. WE WILL FOCUS ON BITCOIN LATER IN THE SHOW. WE ARE UP 3/10 OF A PERCENT. 71,000, NEAR RECORD HIGHS.
THAT'S WHAT KEY INVESTORS HAVE BEEN SAYING. ED: LET'S TALK ABOUT NVIDIA. GENSANITY, OF THE -- THIS IS A CLEAR CALL BACK. THE STOCK IS DOWN A PERCENTAGE POINT. WE TOUCHED $3 TRILLION IN
MARKET CAP. WE ARE GOING TO GET INTO THIS ABOUT VALUATIONS, COMPARISONS AGAINST OTHER PEERS ON THE S&P 500. WAITING IS IMPORTANT. I PUT THAT UP AS A PRECURSOR TO MY NEXT CHART WITH MED THE BEST PERFORMER ON THE NASDAQ 100 FROM A POINTS PERSPECTIVE. THIS IS WHAT WE CARE ABOUT NOW. LET'S BRING UP THE CHART AND
LOOK AT NVIDIA'S MARKET CAP RELATIVE TO APPLE. IT'S SO CLOSE RIGHT NOW. NVIDIA JUST A TOUCH BELOW 3 TRILLION. IT WAS BRIEF AND IT WAS SHORT-LIVED. NVIDIA IS ONLY THE THIRD COMPANY TO REACH $3 TRILLION OF MARKET CAP AND THE FIRST-EVER SEMICONDUCTOR NAME OR CHIPMAKER TO DO SO.
LET'S TALK ABOUT WHICH METRIC WE DECIDE IF THIS IS FAIR IF IT'S A GOOD IDEA OR NOT. CAROLINE: LONGER-TERM KEEP ON BUYING INTO THIS. WE HAVE THAT PERFECT SET UP TELLING US ONCE AGAIN APPLE IS BACK BUT NVIDIA HAS JUST HIT THAT LANDMARK. IT'S ALL PSYCHOLOGICAL ISN'T IT? AND IN MANY WAYS SO AS THE STOCK SPLIT.
>> BECAUSE IT IS THE STOCK SPLIT DRIVING THIS MOVING HIGHER AHEAD OF THAT BECAUSE MONDAY IS WHEN THE STOCK SPLIT GOES INTO EFFECT BUT SOMETHING IMPORTANT TO BE UNOFFICIAL SHAREHOLDER BEFORE THE SPLIT YOU HAVE TO BE A SHAREHOLDER TODAY BY THE CLOSE OF TRADING IN ORDER FOR THAT TO WORK SO IT'S AN INTERESTING DYNAMIC THAT WE SAW THIS HUGE RUNOFF AND NOW IT'S SELLING OFF. IF YOU LOOK AT THE PHILADELPHIA SEMICONDUCTOR INDEX IT HAS OTHER STOCKS LIKE AND. ALSO DOWN ABOUT 1% TODAY BUT AGAIN TO ED'S POINT WHEN YOU THINK ABOUT VALUATIONS VERSUS THE STOCK MOVE YOU SEE HERE AND ALSO TALKING ABOUT APPLE. IF YOU THING ABOUT THE LOW WE SAW IN APPLE STOCKS THAT'S CLOSE TO A 20% HIGHER AND THAT SPAN IS ONLY 2% OFF OF THAT RECORD. WHEN YOU LOOK AT NVIDIA THAT
STOCK IS UP FOR APPLE THOUGH IN COMPARISON. SO WHICH WAS THE BETTER STOCK TO BUY. APPLE HAS THAT FUNDAMENTALS BEHIND IT WHEN YOU THINK ABOUT THE BUYBACKS FOR A COMPANY LIKE THAT. >> THREE MINUTES PAST 8:00 IN SAN FRANCISCO. IS NVIDIA BIGGER THAN APPLE. THAT'S WHAT WE'RE GOING TO DO
EVERY DAY FROM THIS POINT BECAUSE WE ARE SO EXCITED ABOUT IT. THE ACTUAL REASON WE SHOW THAT IN THE MOMENT SESSION TRADING IS AN IMPORTANT ONE WHICH IS START OF THE YEAR NVIDIA HAD TO THINK JUST HAD A 3% WEIGHTING ON THE S&P 500. WE TALKED WITH EARNINGS ABOUT HOW NVIDIA'S EARNINGS OF THE MACROLEVEL EVENT. THE IMPACT -- IT IMPACTS A LOT
OF PEOPLE WHAT HAPPENS WITH NVIDIA. JESS: ESPECIALLY TALKING ABOUT THIS STOCK BEING THE SECOND LARGEST WAITING IN THE S&P 500. EVEN THOUGH WE DID SEE IT ECLIPSE APPLE MARKET CAP YESTERDAY. EARLIER IN THE WEEK IF YOU USE THAT FUNCTION YOU WOULD'VE SEEN NVIDIA'S WAITING HIGHER THAN APPLE BUT STILL IT'S MARKET CAP WASN'T CROSSING THE THRESHOLD. THE REASON IS IT HAS TO DO WITH FLOAT ADJUSTED TYPE SHARES SO APPLES FLOAT ADJUSTED HIS 94% WHERE IS THE OTHER 6% IS HELD BY INSTITUTIONAL BIG INVESTORS LIKE WARREN BUFFETT WHEREAS NVIDIA OR MICROSOFT THOSE ARE 100% NOT ADJUSTED. SOMETIMES YOU'RE LOOKING IN THE
TERMINAL. VERSUS WHAT THE WAITING WAS IN WONDERING WHY THE MARKET CAP WASN'T BIGGER THAN THAT. WHY YOU'RE SEEING DISCREPANCIES THERE SOMETIMES IN THE DATA. >> WE'LL AWAIT THAT 10 FOR ONE STOCK SPLIT WHICH WILL BE AN INTERESTING MOMENT. LET'S GO UP INTO SPACE. SPACEX'S MASSIVE STARSHIP ROCKET BLASTED OFF ON ITS FOURTH MAJOR TEST FLIGHT AS A COMPANY WORKS TO MAKE THE VEHICLE OPERATIONAL, REUSABLE AND READY FOR REGULAR SPACE TRIPS. I WANT TO BRING IN FELLOW SPACE NERD MATT FOR THIS.
WE CARRIED THE LAUNCH LIVE. THE BOOSTER GOT DUMPED IN THE GULF OF MEXICO, STARSHIP SPACECRAFT OUT OF CONTROLLED SPLASH IN THE INDIAN OCEAN BUT REALLY I THINK THE STORY IS THE DATA GATHERED FROM THE PROCESS. AND THAT'S WHAT WAS IMPORTANT FOR SPACE X. MATT: ONE OF THOSE WORDS THAT YOU SAID CONTROLLED IS REALLY IMPORTANT, THAT THESE WERE CONTROLLED REENTRIES AND KIND OF SPLASH LANDINGS FOR BOTH PARTS OF THE ASSET. I THINK THAT'S IMPORTANT.
WHAT WE'VE SEEN IN THE PREVIOUS LAUNCHES IS VERY BIG FIERY EXPLOSIONS. WHICH MEANT THEY HAVE NOT DELIVERED WHAT THEY QUITE HOPED TO AT THOSE TESTS AND ADDING DELAYS TO GETTING APPROVAL FROM THE FAA TO DO THE NEXT TEST LAUNCH. THEY HAVE THIS AMBITION TO LAUNCH PEOPLE ON A MANNED MISSION TO THE MOON SOMETIME ON OR AFTER SEPTEMBER 26. SO IF THEY WANT TO GET ANYWHERE
CLOSE TO THAT THEY NEED TO BE DOING IS TEST FREQUENTLY AND GETTING SUCCESS OF THE FACT THAT IT WAS NOT PERFECT BUT CLOSE TO PERFECT IN TERMS OF THE OBJECTIVES I THINK WILL HELP THEM TO SPEED UP THOSE TESTS AND MOVE TOWARDS THAT OBJECTIVE. CAROLINE: CLEAR FOCUS OF CONGRATULATIONS FROM THE GUY WHO ALTERNATELY LEADS THIS BUSINESS LONG-TERM WHETHER IT'S ON A DAY-TO-DAY BASIS ELON MUSK INC. DESPITE LOSS, STARSHIP MADE ITS WAY IN THE OCEAN. THIS INCREMENTS NEED FOR IMPROVEMENT HOW COSTLY IS THAT NOW. MATT: VERY COSTLY. THIS PROGRAM HAS RUN INTO BILLIONS OF DOLLARS. THEY HAVE MULTIBILLION-DOLLAR CONTRACTS WITH NASA WAS A REAL IMPORTANT CLIENT IN TERMS OF TAKING U.S.
ASTRONAUTS BUT ALSO THIS PROGRAM IS REALLY IMPORTANT FOR THE STARLINK BUSINESS WHICH IS THERE LOWER SATELLITE BUSINESS WHICH HAS BEEN -- HAS A HUGE NUMBER OF CUSTOMERS NOW UP PRO-CHING AND THEY WANT TO USE THE STARSHIP ROCKET TO SEND MORE AND MORE OF THOSE SATELLITES UP INTO LOW-EARTH ORBIT OVER THE MIDTERM SO YOU KNOW IT'S IMPORTANT FOR NASA AND FOR SPACE X BUSINESSES, PARTICULARLY STARLINK. CAROLINE: THANK YOU. MEANWHILE WE TURN OUR ATTENTION TO CHINA. ALIBABA, THE PRESIDENT SPOKE EXCLUSIVELY WITH BLOOMBERG'S ANNABELLE ABOUT CHINA'S ECONOMY AND TARIFF IMPACTS ON MEDIUM-SIZED ENTERPRISES ON ITS PLATFORM BUT ALSO THE COMPANY IS INCORPORATING AI.
TAKE A LISTEN. >> THIS YEAR WE ARE TARGETING ON TWO PARTS. THE FIRST PART IS ABOUT AI. SO THE GENERATIVE AI ACTUALLY
IS THE BIGGEST BREAKTHROUGHS FOR THE TECHNOLOGY. AND USING AI IS ONE OF THE PERFECT USER SCENARIOS. MANY USE CASES WE CAN HELP IMPROVE THE EFFICIENCY FOR THE SELLERS AND WE CAN HELP THE EFFICIENCY ON BRINGING PRODUCT TO THE MARKETING, AND AS WELL TO MANAGE THEIR BUSINESS TO SEE DATA AND WE ARE USING THAT TECHNOLOGY FOR BUYERS AS WELL SO PREVIOUSLY THE BUYERS WERE USING THAT AS A SOURCE ENGINE AND NOW IT'S KIND OF A CREATIVITY ENGINE FOR BUYERS. WE CAN HELP THEM TO GENERATE PRODUCT WHICH WILL FIT THEIR IMAGINATION. WE CAN USE THAT TO HELP THEM SOURCE THE CONNECT. AND ALL THE TECHNOLOGY FOR THE SELLER AND THE BUYERS.
>> THAT WAS THE ALIBABA PRESIDENT. ANOTHER CHINESE NAME AS WE HAD TO BREAK, EARNINGS BEAT EXPECTATIONS. THE COMPANY ALSO EXPANDING TO NEW MARKETS. THE MIDDLE EAST LOOKING AT EUROPE AND OTHER PARTS OF ASIA. ITS FIRST FORAY OUTSIDE OF ITS
DOMESTIC MARKET IN CHINA. BE RIGHT BACK, THIS IS BLOOMBERG TECHNOLOGY. >> IF WE TAKE OUT THE 73,000 OF THE NEXT WEEK OR SO WE WILL END THE YEAR AT 100,000 OR EVEN HIGHER. MARKETS CREATE RANGES WHEN THE TOP OF THE RANGE BREAKS.
YOU HAVE A NICE EXTENSION AND SO IF THE BOTTOM OF THAT RANGE STARTED AROUND 40, 7 -- 40 TO 70 AND THEN 70 GOES TO 100. CAROLINE: BOLD CALLS FOR HIS OUTLOOK FOR BITCOIN AS IT HOVERS NEAR THAT RECORD BREAK JOINING US FOR WHAT FUNDAMENTALLY OR NOT IS PUSHING IT HIGHER, LARA KRIEGER. GREAT TO HAVE SOME TIME WITH YOU. THERE HAS BEEN THIS FOCUS AT THE MOMENT THE POLITICAL SUDDEN TAILWINDS IN THE U.S. AREN'T BEING BAKED INTO
CRYPTO'S PRICE POINTS RIGHT NOW. DO YOU AGREE? >> THAT'S A GOOD QUESTION I THINK POLITICS IS PLAYED SOME ROLE HERE. THIS IS ONE OF THE FEW ISSUES CRYPTO INVESTING AND CRYPTOCURRENCY WHERE WE HAVE MORE BIPARTISAN CONGRESSIONAL SUPPORT WHICH AS YOU KNOW IS VERY MUCH NOT EASY TO FIND THESE DAYS, SO I THINK POLITICS PLAYS A ROLE HERE BUT NOT THE ENTIRE ROLE. THERE'S ALSO ENTHUSIASM AROUND FINALLY GETTING THE ACCESS TO SPOT BITCOIN ETF SEND ADVISORS AND INSTITUTIONS. GRAVITATING TO THAT VEHICLE. AND ALSO THERE'S INTEREST AND EXCITEMENT AROUND THE SPOT A THEORY, ETF POTENTIAL OF THAT COMING TO MARKET, WHEN IS THAT, IN AND THAT'S THE NEXT NEW HOT TOPIC. ED:
IT IS A PRESIDENTIAL ELECTION YEAR RIGHT AND ALL OF YOUR INDUSTRY PARTICIPANT COLLEAGUES WHO, ON THIS PROGRAM SAY WE LOVE ENGAGING WITH CONGRESS IN PARTICULAR IN EUROPE , BUT IT'S INTERESTING THAT'S BECOME A POINT OF POLICY. THERE IS THE REPORTING FORMER PRESIDENT TRUMP IS VERY FOCUSED ON CRYPTO AS A PLATFORM, WHAT IMPACT YOU THINK THAT WILL HAVE. >> I THINK IT'S OPEN TO DRIVE THE CONVERSATION FORWARD FOR SURE. WHEREAS 18 MONTHS AGO, 24 MONTHS AGO POLITICIANS COULD SORT OF AFFORD TO LET IT LIE AND MAYBE IT FELL LIKE IT WAS A LITTLE TOO TOXIC. THE WINDOW HAS SHIFTED A LITTLE BIT AND NOW THERE'S NO IGNORING THE REALITY WE NEED CONSISTENCY AND CLARITY ON THESE MARKETS. AND IT'S TIME TO START HAVING THOSE CONVERSATIONS.
I THINK TRUMP COMING OUT AHEAD OF BITCOIN HAS SORT OF FORCE TO THE CONVERSATION TO THE FOREFRONT REGARDLESS OF WHERE YOU STAND ON THE POLITICAL ISSUE OF IT. CAROLINE: IT SEEMS TO BE SLOW ALL AT ONCE. WHEN IT COMES TO THE SEC APPROVALS. I'M INTERESTED WHETHER WE GET UP ENDED WITH OTHER TYPES OF SPOT ETF'S, WHETHER WE DO THIS ONE AND STOP.
>> VESSEL ON TOP OF MIND. THE SEC A FEW WEEKS AGO APPROVE THIS SPECIAL FILING FOR THE STOCK EXCHANGES THAT ALLOWS THEM TO KIND OF CHANGE THEIR RULES AND LIST SPOT ETF'S BUT THAT'S NOT THE SAME THING AS APPROVING INDIVIDUAL FUNDS. ALTHOUGH IT IS A NECESSARY FIRST STEP. SO NOW THE SEC HAS THE TASK AHEAD OF THEM OF ASSESSING AND APPROVING THE INDIVIDUAL ETF FILINGS. SO THAT'S CAN TAKE SOME TIME, THE -- THE SEC GARRETT -- S.E.C.
HAD GARY GENSLER, YOU'LL SEE THE ISSUERS TAKE THEIR FILINGS AND THAT PROCESS TAKE SOME TIME AND IS ALREADY BEGINNING TO HAPPEN. SO THE TIMELINE MIGHT BE COMPRESSED FROM WEEKS INSTEAD OF YEARS OR MONTHS. ED: THANK YOU. COMING UP ON THE SHOW. I TOOK A RIDE IN A ROBOTAXI IN
LAS VEGAS LAST WEEK AND I WAS THE FIRST PERSON TO DO IT. MORE ON THAT NEXT, THIS IS BLOOMBERG. >> STILL A BIT OF A NOVELTY. MOST PEOPLE DRIVING EXTRA
HAVEN'T SEEN ONE OF THESE. >> THIS IS ROBOTAXI FROM THE AUTONOMOUS RIDE-HAILING COMPANY OWNED BY AMAZON. IT IS NO STEERING WHEEL, NO PETALS AND FOR INWARD FACING SEATS. IT'S RUNNING A FIVE MILE LOOP IN LAS VEGAS ACROSS THREE LANES ROADS UNPROTECTED TURNS AND AMIDST TRAFFIC AT SPEEDS OF UP TO 45 MILES PER HOUR. WE WANTED TO FEEL LIKE YOU'RE BEING DRIVEN BY A VERY SAFE EXPERT HUMAN DRIVER. >> THE ROBOTAXI RUNS ON SOFTWARE TRAINED BY MILLIONS OF MILES GATHERED BY TEST VEHICLES AND PACKED WITH SENSORS AND TEMPERATURE PROBES WHICH GENERATE A FULL PICTURE OF THE WORLD AROUND IN REAL TIME. IT'S BIDIRECTIONAL WITH A DRIVE
UNIT AT EACH END. >> THERE WERE CONES AND WARNINGS AND WE CUT ACROSS TWO LANES OF TRAFFIC >> THE MAP PROBABLY DIDN'T HAVE THE CONES IN IT BUT WE HAVE TO BE ABLE TO DETECT ANYTHING THAT'S CHANGED IN REAL-TIME TIME AND ADJUST PLANS ACCORDINGLY. >> THEY WANT TO PROVE THEY WORK ON THE OUTSKIRTS OF VEGAS. U.S. AGENCIES NOW LOOKING AT THE SELF DRIVING TECHNOLOGY AFTER TWO INCIDENTS WITH TEST VEHICLES. ONE OF THEIR MAIN COMPETITORS IS ALPHABETS WAYMO WHICH USES RETROFITTING CARS FOR ITS AUTONOMOUS RIDE-HAILING.
WHILE THERE CREWS HAS RECENTLY SCALED BACK PLANS FOR TESTING OF ITS OWN PURPOSE BUILT ORIGIN ROBOTAXI. THEY HAVE BEEN DELIBERATELY CAUTIOUS ABOUT WHEN A COMMERCIAL SERVICE WILL LAUNCH. EXPANSION TO SAN FRANCISCO FOR THE ROBOTAXI IS IN THE WORKS. RIGHT NOW THEY CAN CLAIM TO BE THE ONLY OPERATOR OF A PURPOSE BUILT ROBOTAXI ALLOWED TO GIVE RIDES ON PUBLIC ROADS IN AMERICA.
IT REALLY IS A FIRST AT LEAST IN AMERICA. FULLY AUTONOMOUS BUT PURPOSE BUILT ROBOTAXI. NO STEERING WHEEL OR PETALS ON REAL PUBLIC ROADS. THAT WAS NOT A CONTROLLED TEST. IT WAS A REAL ONE IN THE REAL
WORLD WITH REAL TRAFFIC. THE NEWS IS THAT WILL BE AVAILABLE TO THE PUBLIC MAY BE BY THE END OF THIS YEAR IN DECEMBER OR AT LEAST THE START OF NEXT YEAR EVEN IF IT'S IN A LIMITED NUMBER OF MILES OF ROAD. >> IT FEELS A LOT OF FIRST BUT OTHER COMPANIES HOT ON THEIR HEELS? >> WHAT'S INTERESTING IS THE TESLA COMPONENT. WE KNOW ROBOTAXI IS COMING IN AUGUST IN SOME SHAPE OR FORM AND MAYBE THAT'S ELON ACKNOWLEDGING THAT THEY GOT IT RIGHT. THEY PULLED BACK THERE PLAN FOR THE SAME, WHAT'S EXTRAORDINARY IS THE REAL WORLD. IN THAT EXAMPLE IT WAS TRAFFIC CONES, CLOSE TO LANES BUT THERE ARE SOME OTHER THINGS IT CAN HANDLE AS WELL.
>> I'VE REALLY STAYED AWAY FROM THE RACE AND CALLING WHO HAS POLE POSITION AND WHO DOESN'T. THERE'S SO MUCH NUANCE IN THIS INDUSTRY, WHAT I WILL TELL YOU IS THEY HAVE EVEN MORE CONVICTION IN THE PATH IT'S CHOSEN, AND IT IS BELIEVED THAT IT SHOWS IT AND HAD THE COURAGE TO DO IT AND TO STAY ON COURSE. ED: THE REALLY IMPRESSIVE CEO SPENT A LOT OF TIME AT INTEL. SHE JUST WON'T EXAGGERATE. SHE DOES NOT DO THE MOSQUE THING OF THIS IS HAPPENING ON THIS TIMELINE. THAT CAN BE FRUSTRATING BUT
IT'S KIND OF LIKE HAIR AND THE TORTOISE SCENARIO WHERE THEY WERE THE TORTOISE AND IT'S COME FROM BEHIND. CAROLINE: SHOCK AND HORROR, SOMEONE TELLING IT AS IT IS. WHAT IS AMBITIOUS IS THE FACT IT'S GONE ON TO THE REAL WORLD, A REAL LIFE. WHAT SORT OF THINGS DO YOU COME UP AGAINST WITH REAL TRAFFIC? ED: HUMAN DRIVERS ARE KIND OF ERRATIC AND SOME TIMES YOU DON'T KNOW WHAT'S CAN HAPPEN.
AND SOMETIMES SOMETHING MIGHT DROP OUT OF THE SKY OR A FOOD TRUCK GETS IN YOUR WAY. >> THERE'S A TRUCK IN FRONT OF US AND IT HAPPENED TO BE A FOOD TRUCK AND PLATE STARTED FILING OUT OF IT. THEY SAW THEM, SLOWED DOWN AND SAID I'M SEEING STUFF COMING AND IT HAD TO MAKE A DECISION TO THIS DEGREE.
, IT LOOKED ON THE NEXT ONE AND SAID I HAVE SPACE THERE AND JUST WENT ON AROUND IT AND MOVED ON. ED: LITERALLY IT WAS DRIVING, A FOOD TRUCK IN FRONT. THE DOORS, THE BACK OF THE FOOD TRUCK AND PLATES FLY OUT AND IT DID NOT PANIC, IT HANDLED IT. THAT WAS THE EXPERIENCE, CHECK IT OUT.
ANOTHER BIG STORY TODAY, THE FOUNDER IN PODCAST IS BACK, A BLOOMBERG REPORTERS LOOK AT SAM ALTMAN. FROM FOUNDING START UP AT 19 TO RUNNING ONE AT AGE 29 -- 21. THE MOST SILICON VALLEY MAN ALIVE. I WANT TO BRING IN ELLEN HUET. GIVE US THE BROAD INTRODUCTION
TO THIS VERSION AND WHAT WE LEARN ABOUT SAM. ELLEN: THIS IS A NARRATIVE PODCAST IN WHICH WE TELL ONE STORY EACH SEASON, THE STORY OF A HIGH-STAKES DRAMA IN SILICON VALLEY. WE DECIDED TO GO DEEP ON OPENAI AND IN PARTICULAR SAM ALTMAN.
I THINK WOULD LISTENERS CAN EXPECT OVER THE FIVE EPISODES IS REALLY LIKE AN ANALYTICAL ARC OF WHERE DID SAM COME FROM, HOW DID HE RISE TO POWER AND WHAT ARE THE STRATEGIES HE'S USED OVER THE COURSE OF HIS CAREER TO ACCUMULATE THE POWER HE HAS NOW AND WHAT I CONSIDER THE KEY QUESTION, SHOULD WE TRUST HIM. SHOULD WE TRUST THIS PERSON ESPECIALLY AFTER THE EVENTS OF LAST NOVEMBER, HE WAS FIRED FROM HIS SEAT AS THE CEO AND THEN WITHIN FIVE DAYS WAS BACK. CAROLINE: WHAT'S NOTABLE IS SAM TOLD EMILY CHANG AT THE TECH SUMMIT AT YEAR -- OVER A YEAR AGO DON'T TRUST ME. THERE IS THE ABILITY TO OUST ME. WE SAW THAT HAPPEN IN REAL TIME. AND THEN WHO ARE SOME OF THE PEOPLE HE'S WORKED ALONGSIDE ITS INDUSTRY IN PARTICULAR PAUL GRAHAM TOOK TO ASK SAYING THIS IS THE TRUTH ABOUT HOW HE LEFT Y COMBINATOR FOR EXAMPLE. ELLEN: HIS RELATIONSHIP WITH PAUL IS A
PERFECT EXAMPLE OF HOW SAM HAS ACCUMULATED POWER OVER THE COURSE OF HIS CAREER. EVEN AT A YOUNG AGE REALLY WINNING OVER PAUL GRAHAM AND WHEN HE JOINED AT 19, PAUL WENT ON TO ELEVATE SAM WRITING ALL THESE VERY EFFUSIVE BLOG POST ABOUT HOW GREAT OF A LEADER HE IS AND IN 2014 HAND SELECTING HIM TO BE HIS SUCCESSOR. SAM GOES ON TO MAKE THESE PARTNERSHIPS WITH VERY POWERFUL PEOPLE SUCH AS ELON MUSK WHEN ELON AGREED TO FUND OPENAI. AND LATER WHEN HE LEFT, WITH SATYA NADELLA. OPENAI CONTINUED TO GET MONEY. WE TRY TO TRACK WHERE HE HAS REALLY MADE THESE DECISIONS AND WHAT TO DO WITH THE POWER HE HAS NOW. CAROLINE: IT'S A HEAVY BURDEN I'M SURE.
IT'S AN EXTRAORDINARY LESSON I CAN'T WAIT TO GET INTO THE FIRST EPISODE. WE THANK YOU. CHECK OUT THE FOUNDERING PODCAST NOW ON THE TERMINAL AND WHEREVER YOU GET YOUR PODCASTS. WE WILL BE JOINED BY COMMISSION AI CEO AND FOUNDER SCOTT WU. THE COMPANY CHANGING THE WAY IN SOFTWARE ENGINEERING.
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK. ED: JUST A REALLY QUICK CHECK ON THE MARKETS THIS IS THE BROAD PICTURE IN THE UNITED STATES, THE NASDAQ 100 IS AS FLAT AS A PANCAKE. U.S. 10 CREEPING HIGHER, A 4.28%.
AS YOU NOTED WE ARE HIGHER IN THE SESSION HALF A PERCENTAGE POINT ON BITCOIN BUT HOVERING AT THAT LEVEL AROUND 71, 70 2000 U.S. DOLLARS PER TOKEN. THE EQUITY STORY IS NVIDIA. WE WERE VERY EXCITED WE TALKED ABOUT IT HIT $3 TRILLION OF MARKET CAP. DURING THE COURSE OF THIS PROGRAM THE PULLBACK HAS ACCELERATED DOWN 1.8% BUT THE BIG PICTURE IS NVIDIA IS SUCH A BIG WEIGHTING ON THE S&P 500 MORE THAN 6% AND THERE IS SO MUCH FANFARE AROUND JENSEN HONG THERE WASN'T MUCH NEWS CATALYST ABOUT ITS USE CASE IN THE REAL WORLD DRIVING THE STOCK IT'S A PULLBACK FROM THAT $3 TRILLION MARKET CAP OF WHICH WAS THE FIRST SHIP NAME TO ACHIEVE IT, THE THIRD OF ALL TIME. $3 TRILLION MARKET CAP AND I
SUSPECT WE WILL CONTINUE TO TALK ABOUT IT FOR MONTHS TO COME. >> IT'S TIME FOR TALKING TECH. ARC INVESTMENTS CATHIE WOOD IS SAYING THEY'RE WELL-POSITIONED IN ARTIFICIAL INTELLIGENCE DESPITE HAVING TRIMMED THEIR NVIDIA POSITION IN A VIDEO INTERVIEW OVER IN HONG KONG. SHE SAID HER FIRM STILL HOLDS
NVIDIA IN SPECIALIZED PORTFOLIOS EVEN THOUGH SHE SOLD OUT MOST OF HER POSITION FOR THAT ENORMOUS RALLY LAST YEAR. U.S. REGULATORS ARE INVESTED IN MICROSOFT OVER A POSSIBLE DEAL FOR AN AI START UP. THAT'S ACCORDING TO THE WALL
STREET JOURNAL. IN MARCH, MICROSOFT AGREED TO PAY TO LICENSE THE ARTIFICIAL INTELLIGENCE SOFTWARE FROM THE STARTUP INFLECTION. THE DEAL NOW FACES REGULATORY SCRUTINY FROM RESEMBLING WHAT LOOKS LIKE A LARGER COMPANY TAKING OVER STARTUPS FOR ACQUISITION. U.S. FEDERAL REGULATORS HAVE REACHED A DEAL THAT WOULD ALLOW THEM TO PROCEED WITH ACTIVE -- ANTITRUST INVESTIGATIONS OF MICROSOFT AND NVIDIA. THE U.S. JUSTICE MARMOL TAKE A LEAD IN INVESTIGATING. MEANWHILE THE FTC WILL LEAD IN
EXAMINING THE CONDUCT OF OPENAI. ED: THIS IS A NAME THAT MADE A BIG IMPACT EARLIER IN THE YEAR. THEY ARE TRYING TO MAKE SOFTWARE ENGINEERING EASIER, BUT WITH AI. THE START OF HIS BUILDING
COLLABORATIVE AI AND TEAMMATES FOR ENGINEERS SO THEY CAN FOCUS ON MORE INTERESTING TASKS AND THEY DUBBED THEIR OWN AI AGENT AS THE FIRST AI SOFTWARE ENGINEER, DELIGHTED TO SAY THERE 'S COFOUNDER AND CEO IS WITH US. YOU SPLIT YOUR TIME BETWEEN SAN FRANCISCO AND NEW YORK. WHEN YOU GUYS CAME OUT OF STEALTH THE RESPONSE WAS ABSOLUTELY DRY NOR MESS. -- ABSOLUTELY GINORMOUS. I WANT TO KNOW WHAT THAT'S BEEN LIKE IN THE LAST FEW WEEKS AND MONTHS.
>> THANK YOU FOR HAVING ME. IT'S BEEN CRAZY. IT'S BEEN WILD EVER SINCE LAUNCH. I THINK WE'VE SEEN A REAL NEED IN THE MARKET FOR THIS KIND OF TECHNOLOGY. CAROLINE: THERE IS A GAMING -- ED: THERE IS A GAMING USE CASE. I DON'T KNOW WHAT YOU'RE
PLAYING RIGHT NOW BUT I STARTED PLAYING RESIDENTS PEOPLE 4 -- RESIDENT EVIL 4 REMAKE. THE CREATION TIME IS FRUSTRATING FOR FANS. THAT SOMETHING YOU THINK YOU CAN HELP WITH FROM AN ENGINEERING PERSPECTIVE. >> LEASING CUSTOMERS USE IT FOR ALL SORT OF USE CASES. FULL STACK ENGINEERING, DATA ANALYSIS, CODE MIGRATION. WE'VE SEEN A LOT OF REAL USE IN THESE TEDIOUS REPETITIVE TASKS THAT ARE OFTEN TAKING HUGE ENGINEERS, WE HAVE COMPANIES DOING THOUSAND OUR PROJECTS THAT ARE MOVING FIVE TIMES FASTER. CAROLINE:
IT FEELS YOU ARE IN THE AUGMENTING HUMANS CAMP RATHER THAN REPLACING THEM. HOW MUCH ANXIETY HAVE YOU SEEN OF THIS IS CAN REPLACE PEOPLE? >> ABSOLUTELY. WE ARE ALL ENGINEERS OURSELVES BY TRAINING AND EVEN OURSELVES WE USE IT ALL THE TIME WHEN WE ARE BUILDING AND THERE'S REALLY SO MUCH MORE, THE SO MUCH MORE TO BUILD. AND WE THINK THE HEART OF SOFTWARE ENGINEERING IS THE STEEP LOGICAL PROBLEM-SOLVING AND WE WANT TO BE ABLE TO HELP PEOPLE DO MORE OF THAT AND HAVE TO FOCUS LESS ON SOME OF THE IMPLEMENTATION AND DEBUGGING AND THESE OTHER DETAILS. CAROLINE: I LOVE HOW ARTICULATED THE FIRESTORM CREATED WHEN YOU CAME OUT OF STEALTH. THERE WAS THE MONEY GOING IN $21 MILLION, BUT ALSO THERE WERE SO FEW OF YOU.
HOW IS THAT SCALED? WHAT ARE YOU LOOKING TO DO TO ATTEMPT TO CONTINUE TO GROW. >> WE ARE STILL VERY EARLY AND IS A LOT MORE TO DO. WE'VE BEEN LOOKING TO GROW OUR TEAM WITH REALLY GREAT TECHNICAL TALENT FROM NEW YORK AND THE BAY AREA. CONTINUING TO SCALE UP AND GET OUT TO AS MANY CUSTOMERS AS WE CAN. CAROLINE:
WHAT IS IT THAT NEW YORK OFFERS YOU IN TERMS OF TALENT. HOW ARE YOU THINKING ABOUT BIG DECENTRALIZED HAVING HEADQUARTERS IN CERTAIN PLACES. >> BOTH ARE HONESTLY GREAT. WE HAVE A LOT OF OUR TEAM FROM NEW YORK FROM THE BAY AREA AS WELL AND I THINK WE'VE SEEN HAVING ACCESS TO TALENT FOR BOTH LOCATIONS HAS BEEN AMAZING FOR US. >> PART OF THE EXPLORATION OF THE STORY ABOUT YOU GUYS LIFTING THE LID ON COGNITION WAS SOME MYSTERY ABOUT HOW YOU DID IT, HOW YOU MADE SO MUCH PROGRESS. I AM NOT A COMPUTER SCIENTIST OR SOFTWARE ENGINEER BUT WAS THIS A CASE OF YOU GUYS BUILDING YOUR LARGE LANGUAGE MODEL OR BUILDING ON TOP OF OTHER LARGE LANGUAGE MODELS.
GIVE ME THE BASICS OF WHY YOUR THING WORKS. >> DEVON IS AN AUTONOMOUS AGENT. IT'S ABLE TO USE THE SAME TOOLS ACUMEN WOULD USE. IF YOU THINK ABOUT GOING THROUGH A DEBUGGING PROCESS OR BUILDING A WEBSITE OR THINGS LIKE THAT YOU WILL BE WRITING CODE BUT ALSO RUNNING TESTS MAY BE BROWSING THE WEB AND ALL IN THE SAME TOOLS BUT A HUMAN WOULD USE. WE SPECIFICALLY BUILT IT TO BE ABLE TO WORK WITH THOSE TOOLS AND ITERATE ON TOP OF THEM. ED: CAN WE TALK ABOUT MONEY? ERASE $21 MILLION THROUGH PETER THIEL, THAT DOESN'T SEEM LIKE VERY MUCH WHEN YOU CONSIDER COMPUTER COSTS.
ARE YOU REVENUE-GENERATING TO SUPPORT YOURSELVES OR WILL YOU HAVE TO FIND SOME MORE CASH. >> ABSOLUTELY BRAIDED WE CLOSED ANOTHER ROUND LAST MONTH. WE RAISED 175 MILLION FROM A FEW DIFFERENT FUNDS PRIMARILY FROM FOUNDERS FUND, COAST LAW. ED: WOULD YOU BE COMFORTABLE DISCLOSING THE VALUATION. >> THE VALUATION WAS RUN 2 BILLION. ED:
SORRY I INTERRUPTED YOU. >> WE ARE SUPER EXCITED TO HAVE SUCH GREAT INVESTORS AT THE TABLE. AS YOU SAID I THINK THERE'S MONEY BUT GIVES US THE RUNWAY TO SCALE UP AND TO SIZE UP AND DO MORE. CAROLINE: GREAT TO HAVE YOU TO HEAR ABOUT THE MONEY YOU ARE RAISING, CONGRATULATIONS ON THAT. COGNITION AI CEO GREAT TO HAVE YOU IN THE BUILDING. WE TEND TO NEW YORK TECH WEEK. REBECCA JOINS US ABOUT THE INTERSECTION BETWEEN WEB THREE AND AI. THIS IS BLOOMBERG TECHNOLOGY.
FIND IT ON THE TERMINAL, APPLE, SPOTIFY AND I HEART. THIS IS BLOOMBERG. CAROLINE: NEW YORK TECH WEEK IS STILL UNDERWAY IN THE BIG APPLE. INDUSTRY TITANS STARTUPS
GATHERING THROUGHOUT THE WEEK. FOR CONVERSATIONS ALL WEEK LONG BLOOMBERG TECHNOLOGY'S BEEN SPEAKING WITH THESE INVESTORS. HOW THE NEW YORK -- AND WHY THEY CHOOSE CALL IT HOME. MANAGING PARTNERS. WITH THE ROOFTOP PARTIES IN VARIOUS SOCIAL EVENTS. HUMAN FRONT RUNNING THIS WEEK
BUT PUTTING OUT SOME THOUGHT LEADERSHIP. WHERE YOU'RE EXCITED TO BE PUTTING AT USB. CAN YOU TALK US THROUGH IT? >> IT'S A SUPER EXCITING TIME BECAUSE WE ARE SEEING TWO TECTONIC PLATES OF TECHNOLOGY SHIFT AT THE SAME TIME WHICH WAS NEVER HAPPENS. AI HAS MASSIVE PROMISE ON WHAT
IT CAN DO BUT IT RELIES ON AN ORGANIZATION OF DATA. IT WILL RESPOND TO THE EVENT THAT WILL MOST HAPPEN IF IT HAS ACCESS TO DATA IN NEW WAYS. AND IS LIKELY THROUGH A WEB THREE ARCHITECTURE. IF WE ALL OWNED OUR OWN DATA
VERSUS IT BEING LOCKED UP IN LARGE PLATFORMS AS NEW AGENTS AND EXCITING EXPERIENCES WERE BUILT ON TOP OF AI IT COULD TIP INTO OUR DATA WELLS IF YOU THINK ABOUT IT LIKE THAT. REUSE AND CREATE THESE PERSONALIZED EXPERIENCES. SO WE THINK AI AND WEB THREE ON ITS OWN HAVE MASSIVE POTENTIAL TO DO EXCITING THINGS BUT THE PLACE WHERE THEY INTERSECT MIGHT CREATE THE MOST EXCITING NEW ENERGY. CAROLINE: THAT FEELS LIKE IT'S CAN IT TAKE SOME TIME AND THAT SORT OF THE ISSUE HERE. WE'LL GET THE HYPE IN THE VALUATION EXUBERANCE THE IDEA WE ARE THE CUSP OF THIS NEW BEGINNING. TO BASICALLY MOVE TOMORROW THE
WEB THREE ARCHITECTURE AND OWN OUR OWN DATA. THAT'S CAN TO SOME YEARS. >> I THINK IN BOTH WILL FUNDAMENTALLY CHANGE MUCH OF WHAT WE DO PARTICULARLY ONLINE OR ON CHAIN BUT BOTH ARE ON THEIR OWN TIMELINES. THAT BEING SAID THEY HAVE BEEN WORKED ON FOR QUITE A LONG TIME. NEITHER OF THEM ARE BRAND-NEW
AND WE THINK SOME PIECES ARE MORE LIKELY HAPPENING FASTER THAN THEY HAVE BEFORE. IF YOU THINK ABOUT THE ABILITY TO SEND CAPITAL CROSS-BORDER, A WEB THREE IS ENABLING THAT IN A WAY IT HASN'T BEEN ABLE TO BEFORE. THE ABILITY TO BUILD ON TOP OF THAT IS ESCALATING AND WE ARE SEEING IN AI. SO YES IT'S NOT CAN HAPPEN TOMORROW BUT THE PACE OF CHANGE AND OPPORTUNITY IS VERY HIGH. ED: CAN WE JUST TAKE WHAT YOU'VE EXPLAINED AND APPLY IT TO NEW YORK FOR NEW YORK TECH WEEK? WHAT'S CHANGED FOR THE CITY IN THAT RESPECT IN THE LAST 12 MONTHS OR SO? REBECCA: I THINK NEW YORK IS AN EXCITING PLACE TO BE BUILDING.
IT'S ALWAYS BEEN AN EPICENTER FOR WEB THREE. CRYPTO HAS FOUND A HOME HERE. IT'S A GREAT PLACE TO BUILD WHEN YOUR INTERSECTING TECHNOLOGY AND INDUSTRY. WHEN YOU ARE TALKING, THE APPLICATION LIAR AND THAT'S WHAT WE ARE TALKING ABOUT HERE. WHAT CAN BE BUILT ON TOP OF THESE NEW TECHNOLOGIES VERSUS THE UNDERLYING TECHNOLOGY ITSELF AND NEW YORK IS A CENTER OF INDUSTRY.
A LOT OF THAT'S CAN HAPPEN HERE AND WE ARE REALLY SEEING IT. >> WE WERE JUST SPEAKING WITH SCOTT WU WHO WAS EXPLAIN THE MOST RECENT ROUND THEY DID. ONE UNDER 75 MILLION HE SAID OUT OF THE $2 BILLION VALUATION THAT WAS BASICALLY THEIR SERIES A OR B, WHAT DOES THAT TELL YOU AS AN INVESTOR THAT'S TRYING TO OCCUPY SIMILAR SPACE AND WRITE CHECKS IN THAT DOMAIN. REBECCA:
I THINK WHAT THEY ARE DOING IS AMAZING AND THERE ARE SOME REALLY MAGICAL THINGS BEING CREATED. WHAT WE ARE LOOKING FOR IS LESS THE MAGIC OF TECHNOLOGY ITSELF, BUT WHAT IT CAN DO. INCREASINGLY WE'RE IN A MOMENT WHERE WE ARE BEING WOWED BY TECH. INCREASINGLY AI WILL BE AN
INGREDIENT VERSUS THE WHOLE DISH. WHEN YOU THINK ABOUT SERVING CUSTOMERS THE BEST HEALTH CARE OR THE OPTIMUM FINANCIAL SERVICES, AI IS GOING TO BE HOW IT'S DONE VERSUS THE THING ITSELF. AS THAT EVOLVES IT'S GOOD TO CREATE BUSINESSES VERSUS TECHNOLOGY AND THAT WILL ALSO SHIFT OUT SOME VALUATIONS. CAROLINE: HOW COMPETITIVE IS IT TO BE WRITING CHECKS TO NEW YORK BASED COMPANIES RIGHT NOW.
THE WAY THE STARTUP IS BASED AND WHAT THEY ARE LOOKING LIKE MORE BROADLY AT THE MOMENT BRAIDED >> WE -- MOMENT. >> WE ARE SUPER PROUD OF WHAT'S GOING ON IN THE ECOSYSTEM HERE BUT OUR PORTFOLIO IS RATHER GLOBAL AND WE ARE LOOKING FOR THE BEST OPPORTUNITIES THAT MEET OUR THESIS REALLY ALL OVER. A LOT OF THEM ARE HAPPENING IN NEW YORK WHICH IS EXCITING.
VALUATIONS ARE A LITTLE BIT OF A TALE OF TWO CITIES. ON ONE HAND WHEN YOU SAY AI ITS HIGH-PRICED AND VERY BUZZY. BUT THERE IS OPPORTUNITIES WITHOUT THAT IN THE HEADLINE THAT ARE REALLY EXCITING THAT WE ARE SEEING THAT CAPITALS LESS ABUNDANT. I THINK IT'S NOT A STEADY MARKET AND THERE'S A LOT OF VARIETY IN IT. I THINK AI IS A PIECE OF THE PUZZLE IN INNOVATION RIGHT NOW BUT IS NOT THE WHOLE THING. ED:
THANK YOU VERY MUCH FOR COMING ON THE PROGRAM. WE GET A SIT DOWN WITH THE CEO OF REVOLT AS A COMPANY ANNOUNCES A NEW OWNERSHIP STRUCTURE AFTER ITS FOUNDER SEAN COMBS SOLD HIS REMAINING STATE. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: THE LEADING BLACK-OWNED OPERATING MULTIMEDIA PLATFORM ANNOUNCED A NEW OWNERSHIP STRUCTURE BUT IS NOW TIREDLY OWNED BY ITS OWN EMPLOYEE. THIS AFTER ITS FORMER CHAIR SEAN COMBS SOLD HIS REMITTING STAKE IN THE COMPANY. JOINING US NOW IS THE REVOLT CEO. THIS MUST'VE BEEN EMOTIONAL. I'M INTERESTED IN BEING COMPLETELY SEPARATED, DISASSOCIATED FROM DIDDY, WHAT MADE YOU DECIDE IT WOULD BE EMPLOYEES THAT SHOULD TAKE HIS SHARES? >> IF I'M BEING FULLY TRANSPARENT THIS IDEA WAS A BIG IDEA I HAD COMING INTO THE BUSINESS IN 2020. I'M A BIG BELIEVER IN THIS IDEA CALLED LINKED PROSPERITY AND TOLD THE TEAM SINCE THE VERY BEGINNING BUT WHEN REVOLT WINS, WE ALL WIN. WE'VE DONE THAT OVER THE LAST
FOUR YEARS. IF YOU WANT TO TALK ABOUT WE'VE GOT SOME OF THE BIGGEST SHOWS WITH THE BIGGEST CREATORS IN THE WORLD THEY ALL HAVE UPSIDE PARTICIPATION GRADE WE FUNDED 50 TO 100 ENTREPRENEURS, GAVE THEM CAPITAL WITH NO EXCHANGE OF EQUITY. IN THE YEARS WHEN RUBBLE -- REVOLT HAS BEEN DRIVING DISSING THE BIGGEST BONUSES THEY'VE SEEN SINCE THE, BUT WAS CREATED. FOR US THIS WAS JUST ANOTHER
WAY TO NOT JUST TALK THE TALK, BUT WALK THE TALK AND MAKE THE PEOPLE WHO GIVE THEIR BLOOD SWEAT AND TEARS IMPORTANT TO THIS COMPANY EVERY SINGLE DAY THE OPPORTUNITY TO BUILD WEALTH. CAROLINE: WEALTH IS HARD TO COME BY IN MEDIA. WHERE ARE THE DEALS BEING STRUCK, WHERE IS THE MONEY COMING IN FOR PEOPLE TO SEE THE UPSIDE? >> WHAT WE HAVE CREATED IS A SPACE WHERE WE BELIEVE WE OWN THIS YOUTH CULTURE OPPORTUNITY AND SO BACK IN THE DAYS YOU HAD PEOPLE WHO SAT IN THAT SEAT, YOU HAD GREAT COMPANIES LIKE A COMPLEX OR BUDS -- BUZZFEED OR VICE, THAT WAS ALL MTV, TODAY REVOLT SIT SQUARELY IN THAT PLACE. WE OWN YOUTH CULTURE, DOMINATE WITH YOUTH CULTURE AND THROUGH A BLACK-OWNED LENS. FOR ADVERTISERS, YOUTH CULTURE, THAT HARD-TO-REACH AUDIENCE IS A MASSIVE BASE THAT THEY GO AFTER. SO WE BUILT THE KILLER APP, WE
ARE THE CONNECTION TO THE CULTURE. WE CONNECT BRANDS TO THAT AUDIENCE, OUR AFFILIATE PARTNERS DIRECTLY TO THAT AUDIENCE AND PARTNER WITH THE BIGGEST BRANDS IN THE WORLD FROM THE WALMARTS TO THE TARGETS, YOU NAME IT. AND THROUGH THAT WE BELIEVE WE WILL BE ABLE TO TAKE THIS BRAND TO THE NEXT BLACK UNICORN. IT'S TIME FOR ANOTHER BILLION DOLLAR BLACK-OWNED BUSINESS. ED: IN MY CAREER I'VE COVERED THE SCENARIO SO MANY TIMES WHERE THE FOUNDER OR FIGUREHEAD OF THE COMPANY GOES INTO CRISIS AND LEAVES AND THE STARTUP COMPANY TRIES TO MOVE PAST IT AND MOVE ON.
IN MOST CASES, THINKING, THE PRODUCT REMAINS THE SAME. YOU WANT TO DO THE SAME THING. DO YOU FEEL IT YOU WILL HAVE TO CHANGE THE OFFERING OR RETHINK THE STRATEGY OR CONTINUE THE WAY YOU ARE GOING? >> I BELIEVE WE CAN CONTINUE THE STRATEGY IN THE WAY THAT IT IS. WE HAVE SAID FROM THE BEGINNING
THE VISION AND MISSION IS NOT GOOD AT CHANGE SPRING THE NEED FOR THAT HAS NOT CHANGED. HOW WILL WE DO THAT BY BUILDING THE WORLD'S LARGEST MOST POWERFUL BLACK STORYTELLING ENGINE ON THE PLANET. WE DO THAT BY PARTNERING WITH SOME OF THE DOPE WRIST CREATORS WHO SHAPE CULTURE IN THE WORLD. WHILE A LOT OF PEOPLE MIGHT SEE THE DISASSOCIATION FROM SEAN COMBS AS A BIG THING. OUR TRUTH IS SEAN COMBS HAS
NEVER BEEN INVOLVED IN THE DAY-TO-DAY SINCE I'VE BEEN THERE , SO THE VISION YOU SEE, THE STRATEGY YOU SEE HAS BEEN DONE BY THE INCREDIBLE MANAGEMENT TEAM THAT'S THERE AND THE INCREDIBLE EMPLOYEE BASE THAT'S THERE. SO FOR US THERE'S NO NEED TO CHANGE IT'S JUST TIME. ED: I WOULD LOVE TO TALK ABOUT THE DAY TODAY.
YOU ARE THE CEO BUT IT'S AN EMPLOYEE OWNED OWNERSHIP STRUCTURE. WHO REPORTS TO WHO? >> RIGHT NOW THE COMPANY IS BEING BORED MANAGED. WE ARE MINORITY CONTROLLED SO I SIT ON THE BOARD AS THE VOICE AND A REPRESENTATIVE FOR THE COMPANY AND EMPLOYEES MAKING SURE WHATEVER OUR NEEDS ARE, WHATEVER OUR DEMANDS ARE, EVER HOPES AND DREAMS ARE THAT THOSE ARE REPRESENTED AT THE BOARD LEVEL SO WE CAN GET THEM DONE. CAROLINE: HOW MUCH DID DIDDY GET PAID FOR THE SHARES? >> WE ARE A PRIVATE COMPANY SO I'M NOT ALLOWED TO DISCLOSE ANY OF THAT. CAROLINE: THERE'S GOOD BE SOME
REALLOCATION. YOU HAVE TO DECIDE WHO GETS WHAT MONEY WHERE THEY SIT IN THE CORPORATE STRUCTURE. THIS MUST'VE BEEN AN INCREDIBLY DIFFICULT TIME FOR THOSE WORKING AT REVOLT. I'M WONDERING HOW YOU'VE HELP SUPPORT THOSE THAT WORK THERE BECAUSE THIS HAS BEEN TOUGH FOR ANYONE WHO LOVE THE MUSIC AND CULTURE AND INDEED FEELS ASSOCIATED. >> YOU ARE RIGHT THAT THE LAST SIX MONTHS HAVE NOT BEEN EASY FOR THIS TEAM AT ALL. BUT WHAT I WILL SAY IS I AM SO
PROUD OF THIS TEAM. THIS IS A TEAM THAT'S RESILIENT, THAT IS COMMITTED, THAT IS LOYAL AND WHAT WE HAVE DONE IS SHOW THE ENTIRE WORLD PUBLICLY WE ARE BATTLE TESTED. I'M EXCITED FOR THIS TEAM TO SHOW WHAT A BATTLE TESTED TEAM CAN DO. ALONG THE WAY WE DID THE THINGS WE THINK WE HAD TO DO AS EMPATHETIC LEADERS TO TAKE CARE OF YOUR TEAMS AND REGARDLESS WHETHER THIS IS A SEAN COMBS HEADLINES ALLEGATION CRISIS OR SOMETHING ELSE, WE WILL ALWAYS DO WHAT IS BEST BY OUR TEAM.
WHETHER THEY HAD GONE INTO ACTION WE BROUGHT THERAPISTS INTO BRING IN FOR GROUP THERAPY, THE GROUPS OF GOD TOGETHER TO DO WELLNESS COMMUNITY EVENTS, BUT THIS TEAM HAS STUCK BY EACH OTHER AND SUPPORTED EACH OTHER THROUGH IT ALL. I COULD NOT BE MORE PROUD OR HUMBLE AND MORE HONORED TO LEAD THIS TEAM. CAROLINE: COME BACK AND TELL US HOW THE JOURNEY CONTINUES. WE APPRECIATE IT. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ANOTHER WHIRLWIND OF SPACE MEETS VALUATIONS MEETS CORPORATE CULTURE.
ED: TALKING ROBOTAXIS, ROCKETS, MEDIA ENTERTAINMENT, ALWAYS NVIDIA AT THE MOMENT SHOWS HOW MUCH MOMENTUM OUR WORLD HAS GOT. YOU KNOW EXACTLY WHERE TO FIND THE POD, APPLE, SPOTIFY OUR
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