ANNOUNCER:
FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER
COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG
TECHNOLOGY," WITH CAROLINE HYDE AND ED
LUDLOW. CAROLINE: I'M CAROLINE HYDE AT
BLOOMBERG’'S HEADQUARTERS IN NEW YORK. ED:
AND I'M ED LUDLOW IN SAN FRANCISCO.
THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:
WE WILL DISCUSS THE REGULATORY OVER TED -- OVERHANG FOR APPLE.
FULL ANALYSIS AHEAD. ED: YOU WILL GET THE READ ON THE
IPO ECOSYSTEM AFTER REDDIT WENT PUBLIC THIS WEEK WITH STRONG
DE
BUTS. CAROLINE: TALKING OF THE WEEK, BITCOIN
SET FROM ONE OF ITS WORST WEEKS OF THE YEAR AS ETF DEMAND SLOWS.
WE'LL DISCUSS THAT IN SO MUCH MORE THROUGHOUT THIS HOUR.
IT IS HAPPY FRIDAY IN THE CONTEXT OF ONE OF THE BEST
WEEKS FOR THE OVERALL BENCHMARKS IN THE UNITED STATES
FOR THE ENTIRE YEAR. THAT IS IF YOU ARE LONG THIS
MARKET. TODAY WE JUST PULLED BACK BY
ABOUT .1%. ON THE S&P WE HAVE HIT 20
RECORD HIGHS CULMINATING YESTERDAY.
WE ARE JUST DRAWING BREATH FOR THE WEEKEND AND DEEP VOLUME IS
PUSH
ING THAT LOWER. HAVE A 10-YEAR YIELD DOWN BY
FIVE BASIS POINTS. ALL EYES ON SOME FED SPEAK WE
GET TODAY. JEROME POWELL NOT GIVING
ANYMORE THIS MORNING, BUT CERTAINLY WE ARE STILL THINKING
THAT OVERALL WE ARE ON PACE FOR THREE CUTS FOR THE REST OF THE
YEAR. I WILL SHINE A LIGHT ON WHAT IS
HAPPENING IN CHINA. WE DID HAVE SOME BIG MOVES IN
THE U.N.. PULL BACK SIGNIFICANTLY VERSUS
THE U.S. DOLLAR. VERSUS THE CHINESE CURRENCIES.
WHY? WE ARE SEEING CHINESE POLICYMAKERS ALLOW A BIT OF
WEAKENING IN THE
CURRENCY AS THEY SET THAT PEGGY LOWER --
PEG LOWER THAN ANTICIPATED. HOW FAR WE HAVE COME, THE ETF
VOLUMES DIALING BACK AND WE ARE OFF A PERCENT FOR THE COURSE OF
THE TRADING WEEK. ED, WHAT ARE YOU LOOKING AT IN
THE MICRO? ED: REDDIT. WE ARE GOING TO TAKE A DAY-TWO
LOOK AT REDDIT. ON DAY ONE IT WAS A 48% JUMP
FROM THE EARLY FOUR DOLLARS IPO PRICE.
THERE IS A LOT TO DISCUSS IF YOU ZOOM OUT ABOUT THIS WEEK.
WE'LL TALK ABOUT STERILE LABS -- ASTERA LABS AS WELL. IN THE CONVERSATION WE HAD WITH
JEN W
ONG, WE KNOW YOU HAVE TO GO BACK IN SIX MONTHS TIME AND
SAY, HOW DID THEY DO? THE STORY CONTINUES TO BE
ELSEWHERE. APPLE, DOJ, ANTITRUST LAWSUIT
AGAINST THEM. IN THURSDAY'S SESSION IT HAD A
MATERIAL IMPACT ON THE STOCK. YOU CAN SEE WE ARE SORT OF
RECOVERING IN THE SESSION, BUT I STILL THINK IT WAS NOTABLE
THAT FINALLY THERE WAS A HEADLINE ABOUT ANTITRUST
RELATING TO APPLE AND THERE WAS A CLEAR STOCK REACTION THURSDAY.
WHAT HAPPENS NEXT IS THE BIG QUESTION.
IT'S BRING IN MARK GURMAN, CHIEF CORRES
PONDENT COVERING
APPLE. WHAT HAS CHANGED IN THE LAST 24
HOURS? DO WE HAVE ANY SIGNALS FOR HOW
APPLE IS GOING TO RESPOND? MARK: READING TO THE LAWSUIT REVEALS
A LOT. THE DEPARTMENT OF JUSTICE HAD
BEEN WORKING ON THE CASE FOR SO LONG THAT I WOULD SAY ABOUT 60%
TO 70% OF THEIR MAJOR POINTS ARE THINGS THAT HAVE ALREADY
BEEN RESOLVED. APPLE DOESN'T BELIEVE, OF
COURSE THEY WOULD SAY THIS, THAT THE CASE HOLDS MUCH WATER.
THEY DON'T BELIEVE THEY ARE A MONOPOLY.
THEY SEEM TO FIND IT PERPLEXING THAT THE G
OVERNMENT IS TRYING
TO POSITION THEM AS A MONOPOLY, WHEREAS THEY BELIEVE THEY ONLY
HAVE 20% GLOBAL SMARTPHONE MARKET SHARE.
I THINK APPLE IS PREPARED FOR A FIGHT HERE.
I DOUBT THEY ARE GOING TO SETTLE.
THEY HAVE SETTLED IN SOME CASES BUT I DON'T THINK TIM COOK HAS
SHOWN A WILLINGNESS TO SETTLE. I THINK APPLE BELIEVES, BASED
ON MY READ OF THE LAWSUIT, I'M NOT SEEING MUCH HARM TOWARD
CONSUMERS. I'M SEEING A LOT OF HARM TOWARD
DEVELOPERS. I'M SEEING HARM TOWARD PARTNERS
AND SOME RIVALS. BUT, AGAIN,
HERE THEY ARE --
THEIR TOP FIVE ISSUES, A LACK OF CLOUD GAMING SUPPORT, A LACK
OF MESSAGE INTEROPERABILITY, A LACK OF SUPER APPS, WHICH ARE
THINGS LIKE WE CHAT, A LACK OF SUPPORT FOR THIRD-PARTY SMART
WATCHES TO THE SAME DEGREE AS THE APPLE WATCH, AND A LACK OF
SUPPORT FOR APPLE PAY, THE NFC CHIP ON THIRD-PARTY
APPLICATIONS. I THINK IF THOSE FIVE ITEMS --
I WOULD SAY 3.5 OF THOSE ITEMS HAVE ALREADY BEEN RESOLVED. I EXPECT THE MESSAGES SITUATION
AND NFC SITUATION TO BE RESOLVED AS WELL.
BUT TAKI
NG A STEP BACK HERE, DESPITE THAT I DON'T THINK THE
DOJ IS MAKING GREAT ARGUMENTS, GIVEN THE RESOLUTIONS ALREADY
IN PLACE, YOU HAVE TO BE HONEST HERE.
A LOT OF THESE RESOLUTIONS ARE IN PLACE BECAUSE APPLE HAS BEEN
AFRAID OF THIS IMPENDING DOJ LAWSUIT FOR SEVERAL YEARS.
AND THEY KNEW THESE WERE WHERE THEY WOULD BE ATTACKED, SO THEY
KNEW THEY HAD TO FIX THEM. IT IS JUST FOR SOME REASON
APPLE INFLUENCING THE FIXES DID NOT STOP THE DOJ FOR MOVING
FORWARD ANYWAYS. CAROLINE: THIS IS A GLOBAL COMPANY.
TIM COOK, IN CHINA AT THE MOMENT, SEEMINGLY ALL SMILES,
AND SOME CONVERSATIONS HAPPENING AROUND POTENTIAL
GENERATIVE AI. AS EXPECTED. THAT WAS WALL STREET JOURNAL
REPORTING. WHAT SEEMS TO BE AT STAKE IS A
PHILOSOPHICAL DIFFERENCE. PHILOSOPHY DRIVING APPLE AND
THE WAY IN WHICH IT WANTS ITS OWN ECOSYSTEM TO WORK, AND A
PHILOSOPHY THAT SEEMS TO BE CHANGING TECH AMONG REGULATORS.
THEY ARE STILL LOOKING AT APPLE AS A WHOLE, NOT INDIVIDUAL
PLACES THEY ACT MONOPOLISTIC WAY. -- MONOPOLISTICLY. MARK:
FUL
L COURSE TIM COOK IS GOING TO BE ALL SMILES IN CHINA.
CHINA IS A VERY IMPORTANT MARKET, AND TIM COOK IS A POKER
PLAYER. HE'S NOT GOING TO SHOW HIS TRUE
FEELINGS ABOUT THIS LAWSUIT. CERTAINLY NOT IN FRONT OF THE
PRESS AND IN A PUBLIC SETTING AS CHINA IS THAT YOU KNOW,
APPLE STOCK TOOK A BIG HIT YESTERDAY.
I COULD THINK OF 10 BETTER REASONS TO SELL YOUR APPLE
STOCK THAN WHAT IS IN THIS LAWSUIT.
APPLE WILL CERTAINLY HAVE TO IMPLEMENT CHANGES.
I WOULD IMAGINE THAT WHAT YOU SAW IN THE EUROPEAN UNION
REGARDING THE DIGITAL MARKET CHANGES, OPENING UP THE NFC
CHECK, YOU WERE GOING TO SEE A LOT OF THOSE CHANGES OCCUR IN
THE U.S., BUT OUT OF THINK THAT IS GOING TO DO MUCH TO CHANGE
THE FUNDAMENTAL SITUATION WITH APPLE.
THEY ARE MAKING A LOT OF MONEY FROM THE APP STORE.
THEY NEED TO FIGURE OUT A WAY TO BRING IN NEXT BIG HARDWARE
CATEGORY TO MARKET. EVERYONE THOUGHT THAT WAS THE
CAR. THAT IS PROBABLY WHAT COULD HAVE ADDED 100 BILLION DOLLARS
OR MORE TO APPLE'S BOTTOM LINE ON AN ANNUAL BASIS.
THAT I
S WHAT COULD HAVE DOUBLED APPLE'S MARKET CAP.
THAT IS NO LONGER HAPPENING, SO I THINK THE BIGGEST ISSUE IS
NOT REGULATION, IT IS NOT HOW THE APP STORE IS GOING TO BE
IMPACTED, IT IS HOW APPLE IS GOING TO CONTINUE TO GROW ITS
HARDWARE BUSINESS. 75% OF APPLE REVENUE IS STILL
HARDWARE. FUNDAMENTALLY THEY ARE A
HARDWARE COMPANY. THEY NEED TO FIGURE OUT HOW
THEY EXPAND THEIR. IT IS ANOTHER IMPORTANT
COMPONENT, AND THE NEED TO FIGURE OUT THAT SITUATION TOO.
CAROLINE: MARK GURMAN, THANK YOU FOR
BREAKIN
G THAT DOWN. WE WANT TO DELVE INTO THE
OVERHANG FROM A REGULATORY PERSPECTIVE A LITTLE BIT MORE
AND THE NUANCES AROUND IT. WILLIAM KOVACIC IS HERE.
WILLIAM, TO THAT END, WE ALL KNOW THAT THESE SORTS OF LEGAL
WRANGLING'S ARE A DISTRACTION. HOW MUCH IMPACT DO YOU THINK IT
WILL HAVE ON A BUSINESS MODEL? WILLIAM:
I THINK THE DISTRACTION COMES FROM THE NUMBER OF PEOPLE
INSIDE THE COMPANY WHO HAVE TO COMMIT TO SUPPORT THE
LITIGATION. DON'T KNOW WHAT THAT NUMBER IS,
BUT THE EXPERIENCE IN OTHER MAJOR CA
SES IS THAT THIS CAN BE
A SIGNIFICANT DRAG ON THE COMPANY.
YOU HAVE THE INHIBITION THAT COMES FROM THE PENDING LAWSUITS.
PEOPLE -- COMPANIES DON'T WANT TO PROVIDE AMMUNITION FOR
PROSECUTORS. IT MEANS THEY ARE NOT QUITE AS
AGILE IN DEVELOPING BUSINESS PROGRAMS. I REALIZE THESE ARE
SOMEWHAT INTANGIBLE CONSEQUENCES, BUT CUMULATIVELY
WHEN YOU TAKE ALL OF THE DEVELOPMENTS WE HAVE JUST BEEN
TALKING ABOUT IN THE UNITED STATES AND ABROAD, IT IS AN
AVALANCHE OF REGULATORY OVERSIGHT THAT HAS TO SAP THE
CR
EATIVE ENERGY OF THE COMPANY. ED:
WE SOMETIMES TALK ABOUT ON THIS PROGRAM REGULATING THROUGH THE
COURTS. NO, LEGAL ACTION TO GET A
RESULT THAT IS THE BIGGER PICTURE.
IS THERE AN AVENUE WHERE APPLE AND THE DOJ CAN WORK THIS OUT
OUTSIDE OF COURT? WILLIAM: I WOULD THINK THERE IS ALWAYS
THE POSSIBILITY OF REACHING A SOLUTION.
THE SOLUTION, THOUGH, IS GOING TO HAVE TO BE ONE THAT
PERSUADES THE JUSTICE DEPARTMENT THAT THE OVERALL AIM
OF ANY SPECIFIC SETTLEMENT IS NOT SUBJECT TO INVASION BY
ADDITIONAL
ADJUSTMENTS IN THE BUSINESS MODEL.
THEY WILL HAVE TO BE CONFIDENT THAT THE SOLUTION IS ONE THAT
CAN OVERSEE EFFECTIVELY. THERE WOULD BE A WILLINGNESS TO
DISCUSS SETTLEMENTS, A MAJOR MESSAGE THAT HAS COME FROM THE
AGENCIES IN THE U.S. IN RECENT YEARS IS, A GREAT
DEAL OF SKEPTICISM ABOUT THE EFFICACY OF ANY SETTLEMENT
ARRANGEMENTS, AND DOUBTS ABOUT HOW READILY YOU CAN IMPLEMENT
THEM AND BE EFFECTIVE. ED: IN YOUR READING OF THE SUIT
ITSELF, DO YOU THINK THE DOJ HAS A POINT HERE? WILLIAM: THEY DO HA
VE A POINT, AND THE
POINT IS ONE THAT, IN A SENSE, INVOLVES A COLLECTION OF
INTANGIBLE CONSIDERATIONS. BUT THERE IS ANXIETY ABOUT THE
POSSIBILITY THAT INCUMBENT FIRMS THAT HAVE A SIGNIFICANT
MARKET POSITION WILL, THROUGH A VARIETY OF TACTICS, DIMINISH
THE EMERGENCE OF ALTERNATIVE TECHNOLOGIES IN NEW BUSINESS
MODELS. THAT CONCERN MIGHT BE THE
FEELING THAT ANTITRUST LAW FAILED IN THE LAST 30 YEARS TO
DEAL EFFECTIVELY WITH THE EMERGENCE OF NEW TECH.
I BELIEVE A STATE OF MIND, A PERSPECTIVE THAT HAS
A TIGHT
GRIP ON THE AGENCIES, IS THAT THEY ARE NOT GOING TO ALLOW THE
PERMISSIVENESS OF THE PAST TO CONTINUE.
IT MEANS THEY ARE GOING TO DIG IN AND LOOK CAREFULLY AT
ANYTHING THAT APPEARS TO BE AN EFFORT BY AN INCUMBENT TO SEE
THAT NEW TECHNOLOGIES, NEW BUSINESS APPROACHES DO NOT
EMERGE. CAROLINE: THIS IS DOJ ACTION.
WE HAVE SEEN FTC HAVE A SIMILAR FOCUS. BUT SOMETIMES THIS IS
POLITICAL. IN AN ELECTION YEAR DOES THIS
CONTINUE? WILLIAM: I'M GOING TO GIVE YOU A BIT OF
SPECULATION THAT I COULD NEV
ER PROVE IN A RIGOROUS WAY, BUT I
NOTICED PRESIDENT BIDEN'S OPPONENT IN MANY INSTANCES HAS
BEEN SKEPTICAL OF TECH. THAT HAS BEEN FOCUSED IN
PARTICULAR ON THE INFORMATION SERVICES PLATFORMS INVOLVED IN
ADVERTISING, INVOLVED IN SOCIAL MESSAGING.
BUT IT WAS DONALD TRUMP'S JUSTICE DEPARTMENT THAT
INITIATED THE GOOGLE SEARCH MONOPOLIZATION CASE.
IT WAS DONALD TRUMP'S THAT TRADE COMMISSION THAT BEGAN THE
LAWSUIT AGAINST META FOR ITS ACQUISITION OF INSTAGRAM.
IT COULD BE POSSIBLE THAT FOR TECH, GIVEN T
HE WAY THEIR
POLITICAL CONTRIBUTIONS GO, GIVEN HIS CONCERN ABOUT THE
ROLE THEY PLAYED IN HIS OWN ELECTORAL PROCESS IN THE PAST,
HE MAY LOOK AT THE FTC AND DEPARTMENT OF JUSTICE AND SAY,
KEEP UP THE GOOD WORK. CAROLINE: IT WAS A TOUGH -- A TRUMPET DOJ
THAT THIS WAS INITIATED AGAINST APPLE IN 2019.
LAMB CONVEY SUCH, THANK YOU. -- WILLIAM KOVACIC KICK, THANK
YOU. WALL STREET BETS, YOU KNOW IT
WELL. FIND OUT HOW REDDIT'S IPO HAS
AFFECTED THE USER BASE. ED:
THE FOURTH LARGEST IPO OF THE YEAR, REDDIT,
CLIMBED 48% ON
ITS FIRST DAY OF TRADING YESTERDAY AFTER PRICING AT THE
TOP OF ITS MARKETED RANGE, RAISING SEVEN HUNTER $48
MILLION. LET'S BRING IN KATIE RUTH, WHO
HAS LIVED AND BREATHED REDDIT'S IPO THIS WEEK.
I WOULD SAY THIS WENT WELL. KATIE: DID THE FIRST DAY.
RIGHT NOW IT IS TRADING DOWN, ALTHOUGH IT TECHNICALLY IS WELL
ABOVE THE IPO PRICE. IT IS NOT REALLY MUCH ABOVE
WHERE IT OPENED YESTERDAY. I THINK THERE IS TWO NUMBERS TO
WATCH. IT IS THE $34, PRICE AT THE TOP
OF THE RANGE. THAT IS WHER
E INSIDERS, THE
INSTITUTIONAL INVESTORS THAT HAVE BANKER CONNECTIONS, THAT
IS WHERE THEY BOUGHT. THEN SOME OF REDDIT'S TOP USERS
WERE ABLE TO BUY AT THAT PRICE. AND THEN THERE IS EVERYBODY
ELSE, WHICH BOUGHT AT THAT $47 A SHARE WHERE IT OPENED
YESTERDAY. RIGHT NOW IT IS TRADING AT
47-ISH.IT DIPPED BELOW THAT THIS MORNING.
SOME PEOPLE COULD HAVE ALREADY LOST MONEY ON REDDIT, BUT
COMING YOU KNOW, MOST ARE MAKING MONEY. CAROLINE:
CERTAINLY LONG-TERM INVESTORS HAVE CASHED IN HERE,
POTENTIALLY. I'M I
NTERESTED AS TO WHAT THIS
MEANS FOR ONGOING IPO'S, WHAT THIS MEANS MORE BROADLY FOR
MONEY LEFT ON THE TABLE. ONE IPOS TO DO WELL, BANKERS
DO, BUT THE PEOPLE RAISING MONEY DON'T WANT THEM TO FEEL
THAT THEY COULD HAVE RAISED MORE. KATIE: THE MONEY LEFT ON THE TABLE IS
AN INTERESTING ONE, WHERE THEY COULD HAVE RAISED MORE MONEY
AND HAD LESS OF A POP. IT'S UNCLEAR WHETHER REDDIT
ALLOWED FOR TOO MUCH OF A POP. IT IS ALREADY TRADING LOWER
TODAY AND WE WILL SEE WHAT HAPPENS NEXT WEEK, BUT IT
DEPENDS ON
WHAT THEY ARE OPTIMIZING FOR.
IF THEY ARE OPTIMIZING FOR RAISING MORE CASH THAN -- AND
YOU WANT TO PRICE IT HIGH. BUT YOU DON'T WANT TO MAKE A
BAD FIRST IMPRESSION ON THE STOCK MARKET BECAUSE IT CAN BE
HARD TO RECOVER FROM THAT. THAT IS THE ARGUMENT THE
BANKERS WILL MAKE ABOUT WHY THEY PRICE IT TO POP.
THEY ALSO WANT THESE INSIDERS, THESE LARGE ANCHOR INVESTORS TO
KEEP BUYING MORE SHARES. IN THIS IPO AND IPOS TO COME.
THEY ARE NOT GOING TO TAKE THAT RISK ON A NEW LISTING ON THE
FIRST DAY UNLESS
THEY FEEL THEY ARE GETTING SOME SORT OF
DISCOUNT. CAROLINE: KATIE RUTH, GO GET SOME REST.
WE THANK YOU SO MUCH. BE -- YOU WILL BE BRACED FOR
MORE IPO'S TO COME, I'M SURE. WANT TO GET A TAKE ON HOW THE
USERS ARE FEELING ABOUT THE COMPANY'S IPO.
WE KNOW THEY ARE A VOCAL BUNCH. A REDDIT USER FOR MORE THAN 10
YEARS AND MODERATOR FOR WALL STREET BETS, SPENDING THREE
YEARS AS A HEAD MODERATOR JOINS US NOW TO TELL US MORE.
BASICALLY ABOUT REDDIT'S DEBUT, HOW HAS YOUR COMMUNITY REACTED?
HAVE YOU BEEN P
OSITIVE ON IT? >> IT HAS BEEN A MIXED BAG.
THERE IS A TON OF POSITIVITY, A LOT OF PEOPLE EXCITED TO SHORT,
BUY PUTS. THEY ARE EXCITED FOR THE
VOLATILITY. ED: LAST WEEK ON THE SHOW WE
REPORTED ON THE POST REDDIT MADE ITSELF, SAYING WE ARE GOING TO DO AN A.M.A., AND WE
WILL SELECT THE MOST UPLOADED POSTS. -- UPVOTED POSTS. THE MOST UPVOTED WAS, WHY ARE
YOU EVEN GOING PUBLIC? IT IS REDDIT IRONICALLY PUSHING
THE MANAGEMENT TO THINK AGAIN. NOOR:
I THINK THIS IS A GREAT TIME FOR REDDIT TO IPO.
CERTAIN
LY THERE WAS TURMOIL OVER THE PAST YEAR, BUT IF YOU
LOOK AT WHAT CAME OUT OF THAT, FROM A BUSINESS PERSPECTIVE IT
HAS BEEN POSITIVE. WE SAW WITH PROTESTS THAT
PEOPLE FOUND REDDIT COMPLETELY INDISPENSABLE.
THERE WAS SO MUCH OPPORTUNITY FOR A COMPETITOR TO TAKE
REDDIT'S PLACE, AND NOTHING CAME OUT OF IT.
THIS GOES TO SHOW HOW DEEPLY INGRAINED REDDIT IS IN THE
ZEITGEIST AND THAT IT IS HERE TO STAY. ED: THERE ARE MANY REDDITORS AND
MODERATORS THAT HAVE CONCERNS ON REDDIT'S PLAN TO LICENSE
USER AND P
LATFORM DATA TO AI COMPANIES TO USE IT TO TRAIN
LLMS. WHAT IS YOUR POSITION ON IT? NOOR:
FROM A BUSINESS PERSPECTIVE IT IS A RISK.
THE FTC IS ALSO LOOKING INTO THIS.
BUT IT IS A HUGE OPPORTUNITY, AND REDDIT OWNS SOMETHING THAT
IS VERY SPECIAL FOR LLMS, AND THAT IS REAL-TIME USER
REACTIONS TO WHAT IS GOING ON IN THE WORLD.
IT IS SOMETHING I THINK NO OTHER PLATFORM HAS. SO, IT IS A GREAT OPPORTUNITY
FOR REDDIT TO MAKE MONEY OFF OF THAT, AND TURNED AROUND AND
INVEST THAT MONEY IN IMPROVING THE USER
EXPERIENCE. CAROLINE:
I WANT TO ASK ABOUT THE EVOLUTION OF MODERATION.
MANY WOULD SAY IN ANTICIPATION OF THE IPO REDDIT REALLY GET
AHEAD OF ENSURING THAT THIS BECAME A SAFER SPACE TO BE ABLE
TO COMMENT. DOES THAT STAND? HAS ANYTHING BEEN LOST IN THE
FOCUS OF NEEDING TO CLEAN UP THE PLATFORM? NOOR:
IT DEFINITELY LOST A LITTLE BIT OF THE CHAOS AND GRIT HE WOULD
HAVE SEEN 10, 15 YEARS AGO. AND ALTHOUGH THAT DOES LOSE
SOME OF ITS CHARM, I THINK IT IS MORE REFLECTIVE OF THE STATE
OF THE INTERNET RAT
HER THAN REDDIT AS A PLATFORM ITSELF.
WE ARE SEEING ALL PLATFORMS, SOCIAL MEDIA PLATFORMS, SINCE IN RESPONSE TO -- CENSOR IN
RESPONSE TO GOVERNMENT LAWS PUT IN PLACE ON HATE SPEECH AND
OTHER TYPES OF SPEECH. REDDIT IS MAINTAINING ITS
POSITION AS THE FRONT PAGE OF THE INTERNET, AND SIMPLY
REFLECTING WHAT IS ON THE INTERNET THROUGH THESE POLICY
CHANGES. CAROLINE: WALL STREET BETS WAS WHAT WE
TALKED ABOUT DAY IN, DAY OUT IN 2021, 3 2022, NAMELY MADE
AROUND GAMESTOP. THE POWER THAT REDDITORS HAD IN
THAT MOMENT. WHAT DO YOU THINK THE POWER IS
OF REDDITORS AROUND THE STOCK ITSELF? NOOR:
IT WILL BE INTERESTING TO SEE. IT WILL BE INTERESTING TO SEE
WHEN REDDITORS FEEL EMPOWERED, THE ACTIONS THEY TAKE ON THE
PLATFORM CAN MAKE A MEANINGFUL IMPACT ON THE STOCK PRICE OF
REDDIT ITSELF. WITH THE GAMESTOP DEBACLE WE
SAW OVER ONE BILLION PAGE VIEWS IN A SHORT PERIOD OF TIME, IN A
MONTH. AND WE SAW THAT CONTINUED FOR
SEVERAL MONTHS. TO THINK THAT REDDITORS NOW,
WHO MIGHT BE INVESTORS THEMSELVES, CAN HA
VE A POSITIVE
IMPACT ON THE STOCK, AND DEEPEN THEIR RELATIONSHIP WITH THE
COMPANY AND WITH THE PLATFORM. ED: WE JUST HAVE 30 SECONDS.
FOR SOMEONE THAT HAS NO IDEA WHAT REDDIT IS, WHAT IS YOUR
PITCH FOR THEM TO GET ON THE PLATFORM? NOOR:
REDDIT IS A CITY THAT IS INCREDIBLY DEEP, WITH COUNTLESS
COMMUNITIES TO FILL EVERY NEED THAT YOU KNEW OR DIDN'T KNOW
THAT YOU ARE INTERESTED IN LEARNING MORE ABOUT.
IF YOU HAVE AN INTELLECTUAL CURIOSITY THAT CANNOT BE
SATISFIED, BUT IT IS THE PLACE FOR YOU. ED:
H
EAD MODERATOR OF WALL STREET THAT'S ON REDDIT.
MODERATORS ARE VOLUNTEERS. RIGHT TO HAVE YOU ON THE
PROGRAM. COMING UP, TESLA, REDUCING
PRODUCTION AT ONE OF ITS CHINESE PLANTS AS EB SALES
GROWTH SLOWS. WE ARE GOING TO BRING YOU THOSE
STORIES NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE:
TIME NOW FOR TALKING TECH. AS A SIGN THE COMPANY IS MAKING
SOME HEADWAY IN ITS EFFORTS TO FEND OFF A CHALLENGE IN CHINA'S
MEAL DELIVERY ARENA. SHARES IN THE COMPANY ARE UP
AFTER LOSING HALF OF THEIR VALUE IN 2
023.
HUAWEI AND A SECRETIVE CHIPMAKING PARTNER HAVE FILED
PATENTS FOR A LOW-TECH POTENTIALLY EFFECTIVE WAY TO
MAKE ADVANCED SEMI CONDUCTORS. WE ARE TALKING ABOUT
SURFER-LINED QUADRUPLE PATTERNING. IT IS RAISING THE PROCESS THAT
CHINA COULD PRODUCE CHIPS, DESPITE U.S.
EFFORTS TO HALT ITS PROGRESS. LASTLY, TESLA.
IT HAS REDUCED PRODUCTION AT ITS PLANTS OVER THERE AMID
SLUGGISH GROWTH IN TV SALES. -- EV SALES.
THE COMPANY HAS INSTRUCTED EMPLOYEES AT ITS SHANGHAI
FACILITY TO LOWER PRODUCTION. THAT I
S TWO VEHICLES TESLA
MAKES IN CHINA WORKING FIVE DAYS A WEEK INSTEAD OF THE
USUAL 6.5 DAYS. ALL OF THIS ACCORDING TO
SOURCES. ED: COMING UP, WE HAVE LISTINGS
FROM ASTERA LABS AND REDDIT THIS WEEK.
COULD THE IPO TIDE BE CHANGING? RACHEL GOERING -- WE WILL SEE
WHAT RACHEL GOERING IS EXPECTING.
THAT IS COMING UP NEXT. NOW, BRITISH AUDIENCE, PAY
ATTENTION. VODAFONE AND THREE'S COMBINATION IS FACING A DEEP
CHECK BY THE U.K. COMPETITION MARKETS AUTHORITY,
THE REGULATOR. THEY ISSUED A STATEMENT SAYING
THEY ARE CONCERNED AND DO NOT BUY THE ARGUMENT FROM VODAFONE
AND THREE THAT COMBINING THE TWO WOULD MEAN BETTER DEALS FOR
CUSTOMERS. VODAFONE'S LONDON-LISTED CHAIR
IS UP 1.8%, WITH LITTLE TO GO. -- WITH A LITTLE TO GO.
IT IS AN INTERESTING STORY ABOUT CONSOLIDATION IN THAT
MARKET. THIS IS BLOOMBERG. ♪ CAROLINE:
WELCOME BACK TO "BLOOMBERG TECHNOLOGY."
I'M CAROLINE HYDE IN NEW YORK. ED:
I'M ED LUDLOW IN SAN FRANCISCO. ON THE WEEK WE WERE AT ONE
POINT HEADED FOR THE BEST WEEK OF THE YEAR.
ON SEVERA
L MAJOR INDICES, INCLUDING THE NASDAQ 100.
IN FRIDAY'S SESSION WE ARE COMPLETELY FLAK ON THE NET --
FLAT ON THE NASDAQ 100. WHAT IT IS INTERESTING TO SEE
THE MOMENTUM OF THE WEEK WHEN YOU CONSIDER NOTHING AT ALL
HAPPENED IN THE FED MEETING ON WEDNESDAY, AND THEN ON THURSDAY
APPLE, FOR OBVIOUS REASONS, WAS THE BIGGEST POINTS DRAG ON THE
NASDAQ 100 AND S&P 500. WE ARE LITERALLY .2 PERCENT
AWAY FROM THE NASDAQ BEING ON TRACK FOR ITS BEST WEEK OF THE
YEAR. LET'S SEE WHAT HAPPENS ALL TOLD.
ALSO INTO
CASH IN TERMS OF WHAT HAPPENS, THIS WEEK'S IPO.
IT IS DOWN 1.5 PERCENT AFTER JUMPING 48% ON DEBUT THURSDAY.
ASTERA LABS IS UP FOR A THIRD STRAIGHT SESSION, HAVING LISTED
EARLIER IN THE WEEK. BUT, AS YOU AND I KNOW,
CAROLINE, LET'S HAVE A CONVERSATION IN ONE MONTH OR
THREE MONTHS OR SIX MONTHS AND SEE HOW THESE STOCKS ARE FARING
BECAUSE OF THE LESSONS WE LEARNED IN SEPTEMBER WHEN WE
HAD THAT WINDOW WITH ARM.IT HAS BEEN MACRON INTERESTING
CONDENSED IPO WINDOW THIS WEEK. CAROLINE:
I WAS JUST CHECKI
NG ON THOSE WERE -- ON THOSE, AND ARM IS
WELL ABOVE. LET'S TALK ABOUT THIS WHOLE NEW
WAVE OF IPO NAMES. REDDIT, ASTERA LABS DEBUTING
THIS WEEK. EITHER THAT IS GOING TO OPEN UP
THE PIPELINE. RACHEL GERRING IS HERE TO GET
YOUR TAKE ON THE FEEL-GOOD FACTOR RIGHT NOW.
THUS FAR THESE COMPANIES HAVE COME TO THE MARKET AND COME
WELL. IS THAT MEAN SUDDENLY THE OTHER
NAMES WE HAVE BEEN WAITING FOR ARE GOING TO BE GALVANIZED?
RACHEL: IT DEFINITELY HELPS THE MOMENTUM FOR WHAT WE ARE
EXPECTING IN THE IPO MA
RKET, THE PIPELINE WE ARE SEEING COME
THROUGH. AS YOU ALL WERE NOTING, THE
POST-IPO PERFORMANCE OF THESE COMPANIES, EVEN THE ONES BEFORE
THEM, WILL CONTINUE SETTING THE STAGE AND INFLUENCE WHAT WILL
CONTINUE COMING TO MARKET OVER THESE NEXT SEVERAL MONTHS AND
THROUGHOUT THE REMAINDER OF 20. WE GOT POSITIVE MOMENTUM.
THE TRENDS ARE GOING THE RIGHT WAY, BUT NOT WITHOUT ITS
CHALLENGES. WE ARE IN A POLITICAL ELECTION
CYCLE THIS YEAR, SO THERE IS GOING TO BE DYNAMICS EVERYONE
IS GOING TO HAVE TO NAVI
GATE. CAROLINE:
DYNAMICS BEING ALSO THAT THE MARKET IS HUNGRY FOR A I NAMES.
WHEN YOU ARE ADVISING THESE COMPANIES, WHEN THEY ARE SAYING
I WANT TO NAVIGATE LIQUIDITY EVENTS, WANT TO ANALYZE THE
MARKET, DO YOU THINK ABOUT WHERE THEY NEED TO BE DINING
OUT ON AI? RACHEL: AI IS CERTAINLY SOMETHING
DRAWING A LOT OF FOCUS, INTEREST, PARTICULARLY FROM
INVESTORS. WHEN WE THINK ABOUT AI, I THINK
ABOUT IT IN A FEW DIFFERENT BUCKETS.
YOU HAVE THE PURE PLAY AI COMPANIES, THOSE DEVELOPING THE
TECHNOLOGY. THE
RE IS A LOT OF CONTINUED
INTEREST IN THIS AREA, PARTICULARLY IN THE PRIVATE
FINANCING SPACE. THESE COMPANIES ARE GENERALLY
GETTING FUNDED. WILL WE SEE A FLOOD OF IPOS
FROM THEM OVER THE COMING MONTHS AND YEAR? MAYBE NOT.
THEY ARE GETTING THE FINANCING THEY NEED.
THEY ARE DEVELOPING THE TECHNOLOGY.
THEN I ALSO LOOK AT OTHER COMPANIES AND HOW THEY ARE
EMPLOYING AI WITHIN THEIR COMPANIES, ELECTIVE TO THEIR
STRATEGY. WE ARE SEEING THAT PLAY OUT.
WE ARE GOING TO CONTINUE, NOT WITHOUT SKEPTICISM, FROM
INVESTORS. THEN YOU HAVE THAT BROADER
ECOSYSTEM WE ARE SEEING RIGHT NOW AND HOW YOU ARE
CONTRIBUTING TO AI AND THAT BROADER E -- THAT BROADER
ECOSYSTEM. ED: THIS IS EXACTLY WHAT I WAS
WRITING ABOUT IN MY COLUMN THIS MORNING, THAT REDDIT, FOR
EXAMPLE, GOT ITS AI STORY RIGHT GOING INTO THE IPO.
THE DATA LICENSING BUSINESS. WILL BE INTERESTING TO LEARN FROM YOU IS WHAT IS MORE
IMPORTANT, IN THE ROADSHOW YOU SELL YOUR AI STORY, OR IS A
MORE IMPORTANT THAT ACTUALLY NOW A COMPANY LIKE REDDIT IS
LISTE
D, THEY CAN PROVE THEY HAVE AN AI BUSINESS AFTER THE
FACT, THAT IT IS ACTUALLY REAL? RACHEL:
I THINK BOTH ARE CRITICAL, FOR OBVIOUS REASONS.
WHERE WE ARE SEEING, EVEN WHEN YOU ARE PUTTING THAT INTO YOUR S
S1, INVESTORS ASKING YOU TO PROVE IT.
IT IS NOT WRITING ABOUT THE POSSIBILITY AND IDEA, BUT, WHAT
HAVE YOU DONE EVEN UP TO THIS POINT TO SHARE WITH INVESTORS
HOW YOUR PROVING THIS OUT? HOW YOU TRULY HAVE A STRONG
PLAN THAT YOU ARE NOW EXECUTING ON?
AND THEN PROOF WILL BE IN THE PUDDING.
POST-IP
O HOW YOU ARE CONTINUING TO EXECUTE AND PERFORM.
AS WE CONTINUE TO WATCH THE PERFORMANCE OF THESE STOCKS,
YOU KNOW, TWO MONTHS FROM NOW, THREE MONTHS FROM NOW, THEY
HAVE TO CONTINUE DEMONSTRATING THAT PERFORMANCE AND STAYING
GOOD ON THE COMMITMENTS THEY MADE. ED: HOW DO YOU ASSESS THIS WEEK'S
IPO WINDOW? I DON'T EVEN KNOW IF WE CALL IT
WINDOW. VERSUS WHAT WE SAW IN SEPTEMBER? RACHEL: THIS IS TIMMY DEMONSTRATING, WE
HAVE INVESTOR INTEREST AROUND IPOS.
THE COMPANY COMING TO MARKET RIGHT NOW IS WHA
T WE HAVE
EXPECTED. THEY ARE LARGE. THEY HAVE A NAME.
THEY HAVE SOME HISTORY. PERFORMANCE HISTORY BEHIND THEM
AS WELL. THE RISK PROFILE IS ONE OF AN
APPETITE THAT IS ATTRACTING INVESTORS AS THEY CONTINUE TO
PERFORM. BELIEVE THAT OPENS UP OPPORTUNITY FOR THE
GROWTH-ORIENTED COMPANIES TO COME TO MARKET AND HELP DRIVE
SOME VALUATIONS OVER TIME. BUT IT'S GOING TO BE A STEADY
RECOVERY. WE ARE NOT EXPECTING A BIG
BALLOON, IF YOU WILL, OR A HUGE SPIKE.
A STEADY RECOVERY IS WHAT WE HAVE CONTINUED TO EXP
ECT
THROUGHOUT 2024 AS WE CONTINUE TO SEE THE MARKET REBOUND.
CAROLINE: WHAT IS THE MOTIVATING FACTOR
HERE? REDDIT WANTED AN IPO FOR YEARS.
IT IS A LIQUIDITY EVENT FOR EMPLOYEES, BUT I'M SURE TIME
FOR INVESTORS TO HAVE MONEY BACK.
WHAT IS DRIVING OTHER NAMES? RACHEL:
EVERYONE HAD THEIR FACTS AND CIRCUMSTANCES.
SOME ARE GOING TO BE ANCHORING AROUND VALUATIONS, AND ARE THEY
GETTING TO A VALUATION THEY ARE EXPECTING LIQUIDITY FOR?
FOR EMPLOYEES, FOR OTHER FOUNDERS? A LOT OF P/E. THEY HAVE BEEN HAVI
NG SOME
COMPANIES, THEY HAVE BEEN HOLDING FOR QUITE SOME TIME.
THEY WANT TO START ENTERING BACK INTO THE M&A MARKET.
AS WE SEE RATES COME DOWN HOPEFULLY WILL -- HOPEFULLY WE
WILL SEE M&A ACTIVITY. I THINK THAT IS GOING TO START
INFLUENCING SOME EXIT FROM THAT STAGE AS WELL. CAROLINE:
WE WANT TO THANK YOU. RACHEL GERRING THERE ON THE IPO
LANDSCAPE. YOU WANT TO STICK WITH
COMPANIES GOING PUBLIC. NOT ALL OF THEM DO IPOS.
SOME OF THEM DO SPAC'S. DONALD TRUMP'S STARTUP HAVING
VOTED TODAY ON WHETHER D
IGITAL WORLD ACQUISITION CAN PROCEED
TAKING TRUMP MIDEA GROUP PUBLIC. IT RUNS TRUE TO SOCIAL, THE
PLATFORM. IT HAS BEEN A LONG-DELAYED DEAL.
IT HAS NOW PROVED A NUMBER OF INSIDERS AND FORMER ASSOCIATES
SUED TO BLOCK THE DEAL STAND TO POCKET MILLIONS OF DOLLARS. ED:
COMING UP, WE ARE GOING TO DIVE INTO THE WORLD OF CLIMATE
INVESTING, AI. WHAT ON EARTH HAPPENED THIS
WEEK IN IPOS. ANYTHING AND EVERYTHING WE HAVE
SPOKEN ABOUT THIS WEEK. KIM-MAI CUTLER.
REALLY LOOKING FOR TO THAT CONVERSATION NEXT.
T
HIS IS "BLOOMBERG TECHNOLOGY." THIS IS BLOOMBERG. >> THIS IS THE BLACKWELL GPU,
OR GRAPHICS PROCESSING UNIT. IT IS THE START OF TTC,
NVIDIA'S ANNUAL DEVELOPERS CONFERENCE. THE B200 IS MORE POWERFUL THAN
THE PRIOR AI ACCELERATOR. COMPARED TO HOPPER, BLACKWELL
OFFERS TWO .5 TIMES THE PERFORMANCE FOR TRAINING LARGE
LANGUAGE MODELS AND FIVE TIMES PERFORMANCE FOR RUNNING THE
MODEL, A PROCESS KNOWN AS INFERENCE.
VIDEO WILL OFFER BLACKWELL IN VARIOUS FORMS. TWO BLACKWELL
GPU'S AND ONE CPU IN COMBINATIO
N. THEY GOING TO LIQUID-CALLED
SYSTEMS LIKE THIS AND SHIPPED TO CLOUD PROVIDERS FOR THEIR
DATA CENTERS. IT IS A MARKET THAT NVIDIA CEO
SAYS WILL STARTED TO HUNT A BILLION DOLLARS ANNUALLY AND
GROW FROM THERE. -- $200 BILLION ANNUALLY AND
GROW FROM THERE. GTC CROWDS CIRCLED AROUND A
SINGLE DEMO RACK. THE REAL THING SHORT -- STARTS
SHIPPING IN LATE 2024. ED: AMONG EVERYTHING ELSE, TTC --
GTC ENDED LAST NIGHT. WHETHER YOU ARE AN AI FOUNDER
OR AN INFRASTRUCTURE COMPANY, NOW DOWN TO JENSEN LONG.
THAT
MIGHT -- JENSEN LONG. CAROLINE:
SHARE PRICES REAP THE BENEFIT AS WELL. THOSE HE ANOINTED, THE
SYNOPSIS. SOME OF THESE COMPANIES
MANAGING TO PUSH HIGHER BECAUSE WE ARE STARTING TO SEE HOW THEY
ARE ABLE TO TAP INTO THIS ECOSYSTEM THAT BASICALLY IS THE
DRIVING FORCE. ED:
AS WE HAVE BEEN SAYING, GET THE AI STORY RIGHT.
AI WAS ALSO A BIG PART OF THE STORY YESTERDAY FOR REDDIT'S
PUBLIC LISTING DAY. INITIALIZED CAPITAL CELEBRATED
THE IPO OF ITS PORTFOLIO COMPANY, WHICH IS BANKING ON
USING DATA TO BUIL
DERS OF LARGE LANGUAGE MODELS TO FUEL
REDDIT'S GROWTH. LET'S BRING IN INITIALIZED
CAPITAL PARTNER KIM-MAI CUTLER. I WROTE IN MY COLUMN TODAY,
REDDIT GOT THERE AI STORY RIGHT. I THOUGHT IT WAS INTERESTING
THEY WENT THERE WITH THAT. WHAT DID YOU MAKE OF IT?
KIM-MAI: I THINK IT IS A TREMENDOUS DAY
FOR THE WHOLE TEAM THERE, FOR STEVE, FOR ALEXIS.
YOU KNOW, THAT COMPANY IN PARTICULAR HAS A LONG HISTORY
AND CLOSE TIES WITH SAM ALTMAN, WHO RUNS OPENAI.
I THINK THAT RELATIONSHIP OVER THE LAST DECADE OR
MORE
BENEFITED THEIR ABILITY TO RIDE THIS WAVE AND REDDIT ITSELF IS
AN INCREDIBLE PROPERTY. I AM A MULTIPLE TIMES A DAY.
A WEALTH OF INFORMATION THEY HAVE AND ALL OF THE DIFFERENT
SUBCOMMUNITIES AND THE WAY PEOPLE TALK HONESTLY AND FREELY
ABOUT WHAT THEY THINK, YOU KNOW, IT IS AN INCREDIBLE DATA
SOURCE. ED: WHAT I FIND SO INTERESTING,
PARTICULARLY IN DEPLOYED CAPITAL, THE TYPES OF STARTUPS
YOU INVEST IN, REDDIT IS AN EXAMPLE OF WHERE DON'T NEED TO
BE A BUILDER OF LARGE LEG WHICH MODELS OR INFRAS
TRUCTURE PLAY
TO BE A PARTICIPANT IN WHAT IS HAPPENING IN AI.
DO YOU HAVE ANY PARALLEL EXAMPLES OF COMPANIES YOU THINK
WILL BENEFIT FROM THE INFRASTRUCTURE INVESTMENT
HAPPENING? KIM-MAI: I THINK FOR US, YOU KNOW, WE
HAVE LONG DONE MANY DIFFERENT DEALS THAT HAVE VERY SPECIFIC
APPLICATIONS TO DIFFERENT WORKFLOWS AND INDUSTRIES.
FOR EXAMPLE, YOU COULD THINK ABOUT THE HEALTH CARE USE CASE.
HAVE A COMPANY THAT SUPPORTS MEDICAL PROFESSIONALS AND
DIAGNOSES. WE HAVE ANOTHER COMPANY THAT
SERVES AS AN AI
COPILOT FOR FINANCIAL COMPLIANCE.
THERE IS ALL OF THESE DIFFERENT SPECIFIC INDUSTRIES WITH
SPECIFIC LEGAL REQUIREMENTS AND WAYS THAT PEOPLE WORK THAT WILL
NEED VERY HONED AND REFINED APPLICATIONS OF THESE
FOUNDATIONAL MODELS. CAROLINE: IT IS A LONG WAY COMING FOR
SOME OF THESE CHECKS YOU HAVE MADE INTO THE GLASS HEALTH YOU
MENTIONED, SOME OF THESE OTHER AI-ADJACENT NAMES YOU HAVE
INVESTED IN. HOW ARE YOU THINKING ABOUT EXIT
STRATEGY LONGER-TERM? WHAT WAS INTERESTING ABOUT THIS
WEEK WAS MICROSOFT
BASICALLY HIRING INFLECTION, ORIGINALLY
OF DEEP MIND, HEADING IN. IT FEELS LIKE BIG TECH
JUGGERNAUTS ARE PARTNERING IN INTERESTING WAYS.
HOW BROAD DOES THAT GO FOR THE ENTIRE ECOSYSTEM HERE? KIM-MAI:
I THINK SOME OF THE DEVELOPMENTS WE HAVE SEEN THIS
WEEK ARE A REFLECTION OF CONSOLIDATION IN PLAYERS IN THE
FOUNDATIONAL MODEL MARKET. OBVIOUSLY THERE ARE COMPANIES
THAT ARE FAR AND AWAY HAVE TREMENDOUS COMING, REVENUE RUN
RATES. I'M THINKING CHATGPT AND ANTHROPIC.
AND THEN COMPANIES THAT ARE NOT Q
UITE AT THAT LEVEL OR DON'T
HAVE THE SAME LEVEL OF REVENUE GROWTH OR HAVING TO MAKE
DIFFERENT DECISIONS ABOUT WHAT THEY NEED TO DO, GIVEN THE COST
OF COMPUTE AND COST OF GOING FORWARD. I THINK AS A SEED STAGE
INVESTOR WE HAVE COMPANIES WE ARE WORKING WITH FOR, WE MIGHT
BE WORKING WITH THEM FOR FIVE TO 10 YEARS BEFORE WE GO PUBLIC.
IF I LOOK AT SOME OF THE EARLIER FINES, OUR PREVIOUS IPO
IS INSTACART, HAVE JUST HAD A VERY POSITIVE MOMENTUM OVER THE
PAST SIX MONTHS TO A YEAR. AND THEN GOING FORWAR
D WE ARE
GOING TO HAVE COMPANIES THAT PERHAPS YOU AND I WILL BE
TALKING ABOUT IN 10 YEARS. CAROLINE:
WHAT HAS BEEN INTERESTING THIS WEEK IN THE CONTEXT OF AI,
WHETHER IT IS U.S.-CHINA RELATIONS, THERE IS ALSO THE
CONTEXT BROADLY OF WHERE THE GOVERNMENT PLAYS WITH THIS.
WE HAD THE BIG ANNOUNCEMENT FROM INTEL, GETTING MORE
SUBSIDIES, TO BE ABLE TO BE BUILDING HERE.
I KNOW THAT IS SOMETHING YOU ARE THINKING A LOT ABOUT IN THE
CONTEXT OF CLIMATE TECHNOLOGY AS WELL.
WE HAVE MONEY BEING PUSHED FROM TH
E EV PERSPECTIVE THIS WEEK.
TO PERHAPS ENHANCE ELECTRIC VEHICLE MANUFACTURING HERE IN
THE U.S. WHEN YOU ARE THINKING ABOUT THE
OPPORTUNITY OR ANOTHER WAY OF INVESTING IN CLIMATE TECH, DOES
THAT STICK? KIM-MAI: ABSOLUTELY. THE IRA HAS PROVIDED A NUMBER
OF CARROTS AND STICKS, PREDOMINANTLY CARROTS THAT HAVE
TREMENDOUSLY EXPAND THE MARKET FOR SOME OF OUR COMPANIES.
FOR EXAMPLE, HAVING MORE PUNITIVE MEASURES AROUND
METHANE EMISSIONS IS A REAL BENEFIT TO OUR COMPANIES.
USING SATELLITE IMAGERY TO PINP
OINT METHANE LEAKS FROM
SPECIFIC FACILITIES. THE INCENTIVES IN THE IRA
AROUND REVENUE, GOVERNMENT PURCHASES OF CARBON REMOVAL ARE
HELPING TO MATURE THAT MARKET. WE HAVE ANOTHER COMPANY IN
SOUTHERN CALIFORNIA CALLED CLARITY THAT IS DOING CARBON
DIOXIDE REMOVAL WITH LOWER ENERGY INTENSITY AND USAGE AND
COSTS. ED: RIGHT AT THE TOP OF YOUR BLOG
POST YOU WERE TALKING ABOUT THE CHIPS ACT.
LOWER DOWN AT THE EARLY STAGE IS THERE ANY BENEFIT FELT?
THE INFLATION REDUCTION ACT? KIM-MAI:
THERE IS BENEFITS F
OR BOTH, BUT IF WE ARE TALKING ABOUT A
LONG-TERM INVESTMENT IN THE UNITED STATES' ABILITY AROUND
MANUFACTURING AND DEEP ATTACK, I THINK THAT IS BRINGING IN A LOT OF TAX CREDITS AND TAX
INCENTIVES AROUND FACILITIES IN THIS COUNTRY.
FOR EXAMPLE, TO REALLY GET CARBON REMOVAL TO THE NEXT
STAGE WE ARE GOING TO HAVE TO SEE FACILITIES ALL OVER THE
UNITED STATES, PARTICULARLY IN THE SOUTHWEST, WHERE CLARITY IS
LOOKING DO IT'S FIRST FACILITY. THAT IS GOING TO CREATE JOBS
FOR ALL KINDS OF AMERICANS. ED: K
IM-MAI CUTLER, GREAT TO HAVE
YOU ON SET HERE IN SAN FRANCISCO.
WE WILL BE RIGHT BACK. THIS IS "BLOOMBERG TECHNOLOGY." >> I LOVE PLAYING CHESS.
THIS IS ONE OF THE THINGS YOU ALL HAVE ENABLED ME TO DO.
SOMETHING THAT I WASN'T ABLE TO REALLY DO MUCH THE LAST FEW
YEARS, ESPECIALLY NOT LIKE THIS. I HAVE USED A MOUSE STICK AND
STUFF, NOW IT IS ALL BEING DONE WITH MY BRAIN. CAROLINE:
PART OF A LIVE STREAM WITH NEURO-LINK'S FIRST PATIENT,
SHOWING A QUADRIPLEGIC MAN, WHO IS ABLE TO PLAY VIDEO GAMES AND
O
NLINE CHESS USING HIS MIND. NEURAL LINK IS A BRAIN TECH
STARTUP FOUNDED BY ELON MUSK. THIS IMPLANT ALLOWS A PATIENT
TO USE THEIR THOUGHTS TO CONTROL THE COMPUTER. ED: BITCOIN HAS PEELED BACK MORE
THAN 10% FROM ITS ALL-TIME HIGH, AND MAY BE HEADED FOR ONE
OF ITS WORST WEEKS OF 2024. THIS IS THE APPETITE FOR SPOT
BITCOIN ETF SEEMS TO BE SLOWING DOWN.
BUT CO-CEO MIKE BELSHE JOINS US NOW. THAT WAS THE ENCZ -- BITGO CEO
MIKE BELSHE JOINS US NOW. MIKE: I DO NOT LIKE TO PREDICT PRICE,
BUT I THINK WE AR
E AT A GOOD TIME. COURSE THERE IS SOME
CONSOLIDATION. IF YOU ARE NOT READY FOR MY 20%
DROPS YOU ARE NOT READY FOR MY 600% INCREASES.
BUT OVERALL WHAT WE ARE SEEING IS CONSOLIDATION.
THE ETF'S JUST LAUNCHED. WE HAVE SEEN TREMENDOUS RUN-UP.
A LITTLE BIT OF PULLBACK IS HAPPENING, BUT ALL OF THE MACRO
CLIMATE REMAINS EXTREMELY BULLISH FOR BITCOIN.
PRIMARILY DUE TO WHAT PEOPLE KNOW ABOUT THE LONG TERM.
WHAT WE CARE ABOUT MOST AT BITGO.
LONG-TERM MACRO LOOKS LIKE WE ARE GOING TO BE SOLID.
WITH HAVING
A STATIC SUPPLY OF BITCOIN, SOMETHING YOU CAN
COUNT ON THAT DOESN'T GET ERODED AND FIAT CURRENCY IS
CONTINUING TO DO MASSIVE CHANGES WITH DEBT AND DEFICITS
AND NO SIGN OF CHANGE FOR THAT FRONT. CAROLINE: BITCOIN, POTENTIALLY ANOTHER
UNDERPINNING OF PRICE, BUT WHO HAS BEEN GETTING INTO THESE
ETF'S? MIKE: SO FAR I THINK IT HAS BEEN
MOSTLY THE SMALLER TICKET SIZES. MEMBER, INSTITUTIONS MOVE
PRETTY GLACIALLY. I THINK WE HAVE SEEN A WAVE OF
RETAIL. I THINK IT IS GETTING BIGGER,
BUT THE INSTITUTIONS,
YOU KNOW, WE HAVE SEEN SOME SMALLER HEDGE
FUNDS IN. LARGER HEDGE FUNDS WILL COME IN.
PENSIONS ARE COMING. ENDOWMENTS ARE ALREADY HERE.
NOW THAT WE HAVE AN ETF AVAILABLE, WHICH IS THE
DISTRIBUTION CHANNEL THAT MAKES IT EASY FOR EVERYONE TO
PARTICIPATE, IT TAKES A WHILE TO GO THROUGH INVESTMENT
COMMITTEES, BUT I THINK WE ARE STARTING TO SEE THAT RUN-UP
HAPPENED NOW ALL THROUGH THE SUMMER. 80,000 BY MAY. ED:
THE CALENDAR ITEM, WHAT HAPPENS DO YOU THINK? MIKE:
THE HAVING IS AN INTERESTING PATTERN PE
OPLE LOOK AT.
THE MOST INTERESTING PART IS THE LONG-TERM MEANING OF THE
HALF ING. GOING HAS A MONETARY POLICY SET
IN 2009, AND IT HAS REMAINED COMPLETELY UNCHANGED.
IT IS THE LONGEST-STANDING UNCHANGED MONETARY POLICY IN
THE HISTORY OF MANKIND. THIS IS A DEMONSTRATION THAT
BITCOIN HAS AN UNCHANGING COMMITMENT TO THAT POLICY.
HAVING THIS APPLIED DECREASE ON A BLOCK BY BLOCK BASIS, WHICH
MEANS WE SEE A LOWER RATE OF INFLATION, SOME MEASURE AND HOW
YOU COMPARE THAT TO OTHER ASSETS , BITCOIN IS IN A
VERY
GOOD STATUS AS ONE OF THE MOST STATIC SUPPLY ASSETS ON THE
PLANET. CAROLINE: MIKE BELSHE, IT HAS BEEN GREAT
TO CATCH UP WITH YOU. BITGO CEO, AS WE HAVE SEEN ONE
OF THE WORST WEEKS FOR BITCOIN THIS YEAR.
THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." ED:
WHAT AN END TO THE WEEK. CHECK OUT THE PODCAST. THE
PLATFORMS ARE APPLE, SPOTIFY, I HARD, AND WE PUBLISHED TO ALL
OF OUR OWN PLATFORMS HERE AT BLOOMBERG -- BLOOMBERG.
FROM SAN FRANCISCO AND NEW YORK CITY, THIS IS "BLOOMBERG
TECHNO
LOGY."
Comments
Keep up the good work Bloomberg.
Thank you, Bloomberg, 🔥
Greatsuff. Nice episode. Keep up the good work.
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