'Bloomberg Technology' Full Show (06/06/2023)

ANNOUNCER: FROM THE HEART OF WHERE

INNOVATION, MONEY, AND POWER COLLIDE INTO LOOKING VALLEY AND

BEYOND. THIS IS FROM BIG -- "BLOOMBERG

TECHNOLOGY" WITH CAROLINE HYDE AND ED

LUDLOW.

CAROLINE: I AM CAROLINE HYDE AT BLOOMBERG'S WORLD HEADQUARTERS

IN YORK. ED: I AM AT LUDLOW IN SAN FRANCISCO.

THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE:

SEQUOIA SPLITS INTO THREE FIRMS. IT DIVIDES INTO SEVERAL

ENTITIES AS YOU POLITICAL TENSIONS ARE ON THE RISE AND WE

BREAK ON THE ANNOUNCEMENT. ED: COINBASE IS THE LATEST TARGET

BY THE SEC WITH REGULATORS SUING THE EXCHANGE.

WE DISCUSSED THE CRACKDOWN ON CRYPTO AHEAD. CAROLINE:

PLUS WE GOT A DIVE INTO VIRTUAL AND AUGMENTED REALITY FOLLOWING

APPLES'S VISION PRO RELEASE. WE HAVE THE CEO ON THE SHOW AND

THAT AND MORE COMING UP. LET'S CHECK IN ON RELATIVELY

MUTED MARKETS. IN GENERAL, LOOKING AT WHAT THE

WORLD BANK'S WARNING ABOUT, THE GLOBAL ENVIRONMENT WHICH WE

STAND, WHAT OF INTEREST RATES AND DISRUPTION TO GLOBAL

ECONOMIES. ARAB .5% ON THE BID -- ON THE

NASDAQ. WE SEE THE TWO YEAR YIELD ON

THE HIGHER SIDE, FIVE BASIS POINTS ON THE FRONT END AND

THAT MEANS MAYBE WE ARE LESS CONFIDENT THE FEDERAL RESERVE

WILL PUT ON ICE SOME RATE HIKES AND EVEN RATE CUTS.

RICH CLARA IS THE VICE CHAIR OF THE FED SAYING WE'RE NOT

CUTTING SOON AND LIKELY TO SEE A PAUSE FOR THE TIME BEING.

THE EURO CURRENTLY UP BY .2%. INFLATION PRESSURES ARE DIALED

BACK IN THE EUROZONE. AUSTRALIA AND CENTRAL-BANK

FIGHTING INFLATION HARD, REALLY THE GLOBAL NARRATIVE, INFLATION

AND HOW THAT AFFECTS GLOBAL GROWTH.

MOVING ON BECAUSE ONE RISK ASSET AND GROWTH ASSET MIGHT

SAY, HAVING AN INTERESTING VOLATILE DAY.

WE ARE BACK TO IT WITH BITCOIN AND TRADING HIGHER, 26,000,

WELL BELOW THE $30,000 LEVEL A WHILE AGO.

WE WERE WORRIED ABOUT SOME OF THE FACTS ON THE SEC FOCUSED ON

CRYPTO BUT MANAGED TO PUSH HIGHER AT 10:00 A.M.

SO MANY PEOPLE BUYING THE DEPTH THEN. ED:

VERY CLEARLY MOVING TO THE DOWNSIDE.

THE STREET BASICALLY SAYING THIS IS SELL THE NEWS OR

DETAILS OF THE VISION PRO, MIXED REALITY HEADSET ALREADY

PRICED IN. WE WILL HAVE DAY TO REACTION

AND ANALYSIS FROM THAT EVENT. LOOKING AT THE CHIP SECTOR,

TAIWAN SEMICONDUCTOR, THIS IS THE U.S., UP BY 2%.

HAVING AN IMPACT IN MARKETS.

THE IDEA IS LESS CAP EXPENSE BY THE WORLD'S BIGGEST

MANUFACTURER WOULD NOT BE GOOD NEWS BUT A REBOUND THERE.

INTEL, 4.5%, THE COMPANY SELLING $1.5 BILLION WORTH OF

ITS STAKE IN THE AUTOMOTIVE TECH NAME AND WITH OPTIONS TO

SELL FURTHER SHARES AS WELL. THE OTHER TOP STORY IS

COINBASE, SHARES DOWN SIGNIFICANTLY AFTER THE U.S.

SECURITIES AND EXCHANGE COMMISSION SAID IT IS SUING

COINBASE FOR BREACHING SECURITIES LAW.

BLOOMBERG ALSO HAS FRESH THOUGHTS ON THIS FROM SEC CHAIR

GARY GENSLER WEIGHING IN ON THE STATE OF THE CRYPTO INDUSTRY,

THE STEPS IN NEEDS TO TAKE TO PROTECT CUSTOMER ASSETS AND ITS

INTEGRITY.

>> I THINK THE CRYPTO INDUSTRY BROADLY, IF IT IS GOING TO HAVE

SUCCESS GOING FORWARD, HAS TO COME INTO COMPLIANCE WITH BASIC

PUBLIC POLICY ABOUT DISCLOSURE, ABOUT AVOIDING CONFLICTS, ABOUT

SEGREGATING, PROPERLY SEVERED -- SEGREGATING CUSTOMER FUNDS

AND GUARDING -- GUARDING AGAINST FRAUD AND MANIPULATION.

WE HAVE THIS WHOLE AREA THAT STANDS THE CHANCES, COLLAPSING

LIKE A HOUSE OF CARDS. ED:

THE SEC SUES COINBASE, WE HAVE SONALI BASAK.

WHAT IS AT THE CORE OF THE SEC ARGUMENT THERE?

>> A FEW THINGS WE HAVE TO THINK ABOUT, THE CLAIM THE SEC

IS MAKING, THAT THEY ARE ACTING AS AN UNREGISTERED

BROKER-DEALER AND LISTING UNREGISTERED SECURITIES WHICH

HAS BEEN UP FOR DEBATE IN THE CRYPTOCURRENCY -- COMMUNITY

WHEN IT COMES TO REGULATORS FOR A LONG TIME NOW.

COINBASE WE KNOW SAYS A LOT OF THE THINGS THEY POSTED ARE NOT

SECURITIES WHILE THE SECURITIES AND EXCHANGE COMMISSION

BELIEVES THEY ARE. THEY HAVE A SPECIFIC LIST OF

TOKENS THEY HAVE REFERRED TO AS BELIEVING AS SECURITIES.

WE HAVE SPOKEN TO BRIAN ARMSTRONG ON THE RECORD AND

THEY HAVE TALKED ABOUT THE LISTING PROCESS THEY HAVE HAD

AT COINBASE. WE KNOW THEY VIGOROUSLY

DISAGREE WITH WHAT THE SEC IS SAYING.

I THINK THERE'S ANOTHER COUPLE TWISTS AND TURNS IN THE STORY

BECAUSE, IF YOU REMEMBER, COINBASE ACTUALLY HAD LOOKED TO

ACQUIRE OR HAD ACQUIRED A BROKER-DEALER THAT HAD BEEN

DORMANT WITH THE SEC. I EXPECT THAT TO COME UP AGAIN BECAUSE

THEY HAVE BEEN TALKING ABOUT THAT IN RECENT MONTHS.

IT IS NOT FOR LACK OF TRYING TO BECOME A BROKER-DEALER AS THEY

ARE BEING SUED BY THE SEC. CAROLINE:

LET'S BROADEN THE CONVERSATION TO BINANCE WHICH IS NEWS OF

YESTERDAY. THE SEC IS TACKLING ALL MANNERS

OF EXCHANGE.

>> YOU HAVE TWO DIFFERENT THINGS HAPPEN, YOU HAVE

BINANCE, THE LARGEST EXCHANGE IN THE WORLD, BUT SOME

ALLEGATIONS MADE AGAINST THEM ARE DIFFERENT THAN THE ONES

MADE AGAINST COINBASE. BINANCE IS LOOKING AND KNOW

YOUR CUSTOMER RULES, CORRUPTED TRADING VOLUMES, RELIANCE ON

PARTY TRANSACTIONS. ANOTHER THING TO LOOK AT IS THE

DIFFERENCE IN WHERE THE SUIT WAS FILED.

THAT IS A SUBTLE DIFFERENCE BUT IN THE LEGAL COMMUNITY, IF YOU

LOOK, THE SEC FILED THAT SUIT IN WASHINGTON VERSUS NEW YORK

STATE. THERE ARE ONGOING INVESTIGATIONS ELSEWHERE WHEN

YOU LOOK AT THE U.S. GOVERNMENT AND HOW IT IS TRYING

TO LOOK AT BINANCE OPERATIONS, PARTICULARLY BECAUSE THEY HAVE

A WHOLE -- AS A WHOLE IS NOT ON U.S. GROUND.

WHEN IT COMES TO COINBASE, THIS IS MORE LARGELY OF NOT JUST

SECURITIES OR ALLEGATIONS OF SECURITIES, IT IS A SERVICE,

WHICH IS A CRITICAL RAMP. IN THE WAY WE THINK ABOUT HOW

PEOPLE ENGAGE IN CRYPTO MOVING FORWARD, AND THE OTHER

INTERESTING THING IS COINBASE IS BASED IN THE UNITED STATES,

PUBLICLY LISTED, THE SEC ALLOWED IT TO HAPPEN.

SO THERE ARE DIFFERENT TENSIONS GOING ON AND THE WAY THEY ARE

LITIGATED WILL BE DIFFERENT. MY SOURCES ARE SAYING OVER

COINBASE NOT SURPRISINGLY THAT THEY INTEND TO DEFEND

THEMSELVES VIGOROUSLY AS WHAT YOU WOULD EXPECT FROM A SUIT

THAT IS NOT SETTLED. AS IT STANDS TODAY.

ED: THANKS TO SONALI BASAK OUT THERE IN NEW YORK.

VENTURE CAPITAL GIANT SEQUOIA CAPITAL IS SPLITTING GLOBAL

OPERATIONS INTO THREE SEPARATE FIRMS. AS YOU PUT IT WILL

TENSIONS BETWEEN THE U.S. AND CHINA CONTINUE TO SIMMER.

LET'S GET MORE DETAILS WITH ALL THINGS VENTURE CAPITAL WITH

"BLOOMBERG TECHNOLOGY". LET'S START WITH THE SEQUOIA

SPECIFICALLY. I KINDA FEEL LIKE THE WRITING

HAS BEEN ON THE WALL FOR THIS THREE SEPARATE ENTITIES FOR

SOME TIME.

>> I THINK THAT IS RIGHT. THIS HAS BEEN ROUGH, JUST GOING

BACK HERE, SEQUOIA HAD A VERY

TOUGH YEAR, A LOT OF CHALLENGES FROM -- CHALLENGES RELATED TO

THE CHANGE OF STRUCTURE BEFORE THE PUBLIC MARKETS TANKED TO

THEIR BACKING UP TWITTER, TO THEIR BACKING OF FTX, THE

LARGEST CRYPTO IMPLOSION YOU GUYS HAVE BEEN TALKING ABOUT ON

THE SHOW ON AND OFF AND ON. THEY HAVE HAD A LOT OF ISSUES

THIS PAST YEAR, INCREASED TENSIONS FROM WASHINGTON, D.C.

TO CLAMP DOWN ON WHAT YOU ARE DOING IN CHINA, WHAT THEY HAVE

BEEN DOING IN TERMS OF SUPPORTING INVESTMENTS THERE

BUT DIRECTLY FROM THEIR U.S. PARTNER AND THROUGH THEIR

LIMITED PARTNERS WHO THEY

CONVINCED TO INVEST IN SEQUOIA, -- SEQUOIA-CHINA OPERATIONS

HAVE COME TOGETHER TO THIS MOMENT.

IT HAS BEEN BUILDING FOR A WHILE.

>> THEN THE RIPPLE EFFECTS, LIGHTSPEED, CHINA PARTNERS AND

DST GLOBAL. WE EXPECT OTHERS WILL HAVE

SIMILAR MOVES OR IS THIS AN IN MOOD -- AN INDIVIDUAL

IDIOSYNCRATIC EVENT?

>> THERE HAS BEEN MOUNTING PRESSURE FOR THE PAST YEAR OR

SO TO INTENSIFY ON THE PART OF WASHINGTON LAWMAKERS TO CRACK

DOWN ON INVESTORS HERE IN THE U.S. THAT ARE BACKING CHINESE

STARTUPS THAT ARE FOCUSED ON SENSITIVE TECHNOLOGY, AI,

QUANTUM, AUTONOMOUS DRONES, AND OTHER AREAS THAT COULD HAVE A

MILITARY APPLICATION AND DO IN MANY CASES WITH THE DGI DRONE.

THIS IS JUST THE RIPPLE EFFECT, IS THIS THE BEGINNING A MORE TO

COME? THAT IS A GREAT QUESTION AND WE

DON'T -- WE HAVE NOT HEARD ANYTHING FROM LIGHTSPEED AND

SOME OF THE OTHER INVESTORS WHO HAVE ALSO NAMED BIG BETS THERE

BUT THERE IS ACTIVITY ON THE HILL, THERE IS AN EXECUTIVE

ORDER WHICH IS EXPECTED AND HAS BEEN EXPECTED FOR SOME TIME.

SO WHAT THAT WILL LOOK LIKE AND WHETHER IT IS THE FIRST UP OF

MONEY OR FINAL, I'M -- IT'S GOING TO ANSWER THAT QUESTION.

ED: THE LANDSCAPE IS BLOOMBERG REPORT OF THE PRESIDENT IS

CONSIDERING LIMITING OUTBOUND INVESTMENT TO CHINA.

WHEN YOU AND I ARE IN THE VALLEY EVENTS, SPEAKING TO

VENTURE CAPITALISTS, THERE IS THIS ETHICAL AND PHILOSOPHICAL

CONSIDERATION EITHER ABOUT TAKING MONEY FROM CHINESE LPS

OR DEPLOYING CAPITAL INTO CHINESE STARTUPS.

TELL ME WHAT YOU ARE HEARING ON THAT FRONT.

>> THAT IS A GREAT POINT. ONE OF THE BIGGEST THINGS YOU

AND I HAVE BEEN HEARING IS THIS BICKERING BETWEEN VCS THAT ARE

REALLY INVESTING AND FOCUSING ON DEFENSE TECHNOLOGY AND

NATIONAL SECURED APPLICATIONS THAT SEEM TO BE THE LOUDEST

VOICES IN THE ROOM. THESE ARE ONES INCLUDING

FOUNDERS FUND AND HORWITZ THROUGH THEIR AMERICAN DYNAMISM

FUND LOOKING AT U.S. COMPETITION IN THESE EMERGING

TECHNOLOGIES AND APPLICATIONS IT COULD HAVE FOR MILITARY.

IN TERMS OF WHAT THIS MEANS AND THE TENSION BETWEEN THE FIRMS,

WE HAVE NOT HEARD ANYTHING YET FROM PARTNERS AS TO WHETHER

THIS PUT UP IS ENOUGH OR NOT. THERE IS CONCERN ABOUT THE

SUPPORT U.S. MONEY IS GIVING A LOT OF FIRMS.

I THINK IT IS WORTH NOTING THAT ONE THING SEQUOIA DID NOT

MENTION IS WHAT WILL HAPPEN TO THEIR U.S.

PARTNERS THAT STILL HAVE ANY INTEREST IN THE FUNDS THAT

ALREADY MADE THE INVESTMENTS YEARS AND YEARS AGO.

I'M THINKING ABOUT TIKTOK, THINKING ABOUT DJI, AND OTHER

ONES WHERE THEY HAVE BILLIONS OF DOLLARS BUT IT IS ILLIQUID

AND THEY MAY -- MADE THE INVESTMENT AT A TIME WHERE IT

WAS ILLEGAL. NOW THEY HAVE THIS MONEY BUT

THEY CANNOT NECESSARILY GET IT OUT RIGHT NOW AND THAT IS NOT

EVEN THE FOCUS OF THEIR ANNOUNCEMENT TODAY BUT REALLY

THE ELEPHANT IN THE ROOM TO SOME EXTENT. THEY SAID IT IS NOT

GEOPOLITICAL TENSIONS PUSHING US, THEY KIND OF DOWNPLAYED

THAT STATEMENT, BUT IT IS KIND OF TOUGH TO AVOID THAT.

I DON'T REALLY KNOW THAT WILL BE IT. CAROLINE:

I'M SURE THERE WILL BE PLENTY MORE REPORTING FROM YOU ON THIS.

YOU SO MUCH FOR BREAKING IT DOWN.

COMING UP, WHILE WE ARE GOING TO DISCUSS APPLE'S PUSH INTO

SPATIAL COMPUTING. WHAT DOES THAT MEAN?

IT HAS A STEEP PRICE TAG. WE HAD TO BREAK.

CURRENTLY MUTED, BOUNCING RUN ON THE DAY ON INTEREST DAY I

HALF A PERCENTAGE POINT SO MAYBE WE OUGHT THE NEWS AND

SOLD THE FACTS. THIS IS BLOOMBERG. ♪

>> IN THE SAME WAY MAC INTRODUCED US TO PERSONAL

COMPUTING AND IPHONE INTRODUCED US TO MOBILE COMPUTING,

APPLEVISION PRO WILL INTRODUCE US TO SPATIAL COMPUTING.

THIS MARKS THE BEGINNING OF A JOURNEY THAT WILL BRING A NEW

DIMENSION TO POWERFUL PERSONAL TECHNOLOGY. CAROLINE:

TIM COOK THERE, ONE DAY AFTER THE CONFERENCE, UNVEILING THE

APPLEVISION PRO AND ERA OF SPATIAL COMPUTING.

LET'S BRING IN THE PRINTABLE ANALYST AT FORRESTER WHO JUTTED

IN ON THE REDEYE HAVING BEEN AT THE EVENT.

10 OUT OF 10 FOR ALL THE EFFORT TO BE MADE.

DESCRIBE WHAT SPATIAL COMPUTING IS.

>> YEAH, I HAD THE OPPORTUNITY TO VOTE ON THE -- IT'S NOT A

HEADSET, SPATIAL COMPUTING DEVICE AND GET A PRIVATE DEMO.

IT IMPRESSES, LIKE NOTHING I HAVE EVER TRIED AND I HAVE

TRIED ON A LOT OF HEADSETS FROM THE SET UP IS EASY, INTERFACE

IS INTUITIVE, AND THEN YOU THINK ABOUT 180 DEGREES FIELD

OF VIEW, YOU CAN'T IMAGINE IT. CAROLINE:

SO THREE POINT $5,000, DO THINK THAT IS THE RIGHT PRICE TAG?

GOING FOR A LUXURY ITEM BEFORE THEY GO FOR COMPETE POWER IN

EVERYONE'S HANDS?

>> I THINK THAT IS THE APPLE STRATEGY AND ONE OF THE OTHER

ADVANTAGES OF NOT CALLING IT A HEADSET IS APPLE COMPUTER COST

ANYWHERE FROM $800 TO $900 UP TO 7000 SO THIS IS A MID RANGE

COMPUTING DEVICE FOR APPLE, NOT AN EXPENSIVE HEADSET. ED:

I'VE GOTTA GO BACK TO THIS, THAT ONE QUESTION EVERYONE HAS.

I WAS AT WWDC AS WELL, WHAT IS SPATIAL COMPUTING?

>> IT IS 3D. IN ONE EXAMPLE, I WAS WHAT

APPEARED TO BE ON THE TOP OF A CLIFF ABOVE A FJORD IN NORWAY

AND I WAS. -- I WAS ABLE TO PEER OVER AND

ALSO SIT AT THE EDGE OF A LAKE AND LISTENED TO THE LAPPING

WATER ON THE SHORE WHILE READING A BOOK.

I WAS A BUTTERFLY -- A BUTTERFLY CAME AT ONE POINT AND

LANDED ON MY FINGER AND EIGHT DINOSAUR GOBBLED MY HAT.

THE OTHER EXCITING THING ABOUT THIS DEVICE IS A CAN TAKE

PHOTOS AND CAN TAKE VIDEOS. I WATCHED CHILDREN HAVING A

BIRTHDAY PARTY AND TO ALLOW CONSUMERS TO CREATE THOSE

VIDEOS ON THEIR OWN, WE HAVE NOT SEEN SOMETHING LIKE THIS IN

A LONG TIME. ED: WHAT JUMPED OUT AT ME WHEN I

GOT UP CLOSE AND PERSONAL WAS THE APPENDAGE, THE BATTERY PACK

AND GRAY CABLE RUNNING FROM IT. WHAT DID YOU MAKE OF THAT?

>> SO THE CONCERN WITH A DEVICE IKE THIS THAT WE ARE NOT

CALLING A HEADSET IS ALWAYS THE WAY THE DEVICE -- WEIGHT OF THE

DEVICE. EVERYONE LOOKS FOR WAYS TO TAKE

THE WEIGHT OR SIZE OUT. THE DEVICE IS ABOUT ONE POUND,

SO THAT IS ON THE HEAD AND THEN THE BATTERY PACK IS ABOUT THE

SIZE OF AN IPHONE OR IPHONE PRO AND SITS TO THE SIDE.

BATTERY LIFE IS TWO HOURS I BELIEVE AND I'VE HEARD FOLKS

KNOCK THAT BUT ON THE OTHER HAND, YOU ARE ALSO UNLIKELY TO

HAVE THIS DEVICE IN YOUR HEAD FOR MORE THAN ONE TO TWO HOURS

SO I THINK THEY ENGINEERED THAT ABOUT RIGHT, THAT THE BATTERY

PACK WILL LAST LONGER THAN I AM LIKELY TO HAVE THIS ON MY HEAD

FOR ONE SESSION. ED: BEING AT APPLE PARK, PAYING

ATTENTION TO THE KEYNOTE PRESENTATION, THERE WAS

EMPHASIS ON THE IDEA THE VISION PRO COULD DO LOTS OF THINGS

THAT ARE ACCESSIBLE ON THE IPAD AND IOS THAT ALL THAT GREAT

STUFF IS READY TO GO AND GIVEN THE PRICE POINT I THOUGHT THAT

WAS INTERESTING.

>> I THINK IT IS A SMART STRATEGY BECAUSE IF YOU LOOK AT

THE VR HEADSET MARKET TODAY IT IS PRIMARILY GAMING, EDUCATION,

A LITTLE FITNESS, AND META-IS HOPEFUL FOR SOCIAL MEDIA.

YOU CAN LOOK AT THE STRATEGY APPLE IS TAKING WITH THEIR

DEVICE, TAPPING INTO MEDIA CONSUMPTION, WHICH IS FAR

EASIER FOR CONSUMERS TO GET UP AND RUNNING AND GET GOING AND

HAVE ENJOYMENT FROM THE DEVICE AND IT TAPS INTO THE APPLE ONE

SERVICES SO MANY CUSTOMERS ARE ALREADY BUYING.

IF YOU THINK ABOUT A TYPICAL APPLE SMARTPHONE OWNER WITH 90%

OF THEM OWNING AND APPLE COMPUTER, WHERE HALF OF THEM

OWN A TABLET AND ONE THIRD OWN AN APPLE WATCH OR SMART

SPEAKER, APPLE, I DON'T KNOW IF YOU WANT TO CALL THEM

ENTHUSIASTS, PEOPLE WHO OWN APPLE PRODUCTS TEND TO OWN MANY

FROM THE ECOSYSTEM SO WHEN THEY USE THE APPLE ONE SERVICES,

THEY GET THE BENEFIT OF THOSE PRICES.

AND SERVICE ACROSS THE DEVICES THEY OWN.

VERY QUICK STARTUP AND FAST UTILITY AND VALUE TO THE

CONSUMERS ON THIS DEVICE. CAROLINE:

JET SETTING FOR US, THANK YOU SO MUCH.

WE WILL HAVE MORE LATER FROM THE AI AFICIONADO CEO.

ED: START UP INSTA BASE MAKES USE

OF OPENAI LARGE LINGWOOD MODELS AND NABS A 2 BILLION-DOLLAR

VALUATION IN THE PROCESS. MORE ON THAT NEXT OF THE CEO.

THIS IS BLOOMBERG. ♪

ED: BUSINESS SERVICES STARTUP INSTA

BASE RAISED A NEW ROUND OF FUNDING DOUBLING ITS VALUATION

TO $2 BILLION. A DEAL VOIDED BY THE COMPANY'S

USE OF GENERATIVE AI TOOLS AND CORPORATE SUITE PRODUCTS.

LET'S BRING IN THE CEO FOR MORE. WELCOME TO THE PROGRAM.

>> GLAD TO BE HERE. ED: BASICALLY YOU'RE BUILDING ON

GPT FOR A.

>> WE USED THREE PEOPLE -- 3.5 AND FOUR AS PART OF OUR PRODUCT

MOVING FORWARD. ED: WHAT WAS THE ATTRACTIVENESS OF

USING THAT FOUNDATION? WHEN YOU ARE THINKING ABOUT

YOUR FUTURE USE CASE.

>> EARLIER WE USED LANGUAGE MODELS IN ONE REQUIREMENT IF

YOU WANTED TO MAKE A DIVERSE PROBLEMS, YOU NEED TO DEFINE

MODELS OR TRAIN IT ON CUSTOMER DATA LIKE HAVE A FEW MORE

SAMPLES. FOR EXAMPLE, I CAN TAKE THE

SAME MODEL AND APPLY IT FOR LEGAL DISCOVERIES CASE OR LOAN

PROCESSING OR SOMETHING ELSE. YOU DON'T NEED TO FINE-TUNE IT

FOR EACH USE CASE WHICH IS A VERY VALUABLE STEP FOR OUR

CUSTOMERS BECAUSE NOW THEY CAN [INDISCERNIBLE] CAROLINE:

OVERALL, THE FOCUS YOU HAVE MADE ON PRODUCTIVITY AND THE

IDEA THIS IS GOING TO REVOLUTIONIZE -- THIS IS WHAT

THE MARKET SEEMS TO BE CLIPPING ONTO, THE FACT AI WILL ADD

TRILLIONS OF DOLLARS OF PRODUCTIVITY INTO THE OVERALL

ECONOMY. DO YOU BUY INTO THAT? DO YOU THINK THE EFFICIENCY IS

HERE NOW AND YOU ARE ABLE TO SELL THE PRODUCT EASILY INTO

YOUR OVERALL CLIENT BASE?

>> I DO BELIEVE SO. I WILL GIVE YOU AN EXAMPLE

ALONG THE SPECTRUM OF LIKE INDIVIDUALS TO SMALL BUSINESSES

AND LARGE ENTERPRISES. CURRENTLY AI REACHED THE POINT

WHERE PEOPLE LIKE US AS AN INDIVIDUAL, IF YOU WANT TO FILE

TAXES, WE GIVE THE DOCUMENT AND IT ACTS FILES FOR US AND YOU

CAN FIND HUNDREDS OF USE CASES. LET'S TAKE AN EXAMPLE OF SMALL

BUSINESS, LET'S SAY YOU ARE A

LEGAL FIRM AND YOU HAVE TO PROVIDE FORM FILLING OR

IMMIGRATION SERVICES, NOW YOU CAN COLLECT THE DATA FROM YOUR

CUSTOMERS AND AI CAN READ THAT STUFF AND GENERATE

AUTOMATICALLY THE FORM, SAVING TIME.

THE REALITY WAS THAT FOR THE TOP BANKS ARE CUSTOMERS IN THE

U.S., GLOBALLY WE HAVE STANDARD CHARTER, AQUA, AND MARKET

PROCESSING OR KNOW YOUR CUSTOMER OR CLIENT ONBOARDING,

WE HAVE BEEN ABLE TO AUTOMATE THAT AND WE SEE AI CAN

SIGNIFICANTLY INCREASE PRODUCTIVITY BOTH AT AN

INDIVIDUAL LEVEL AND OPERATIONAL LEVEL. CAROLINE:

I CAN TELL BEING ABLE TO HAVE THESE CURRENT CUSTOMERS, THE

ADOPTION RATE WILL BE EASIER TO RAISE FUNDS IN THAT ENVIRONMENT

BUT THIS IS A DIFFICULT ENVIRONMENT TO RAISE FUNDS.

HOW QUICKLY COULD YOU RAISE THEM AND WAS AT THE AMOUNT HE

WANTED AND ULTIMATELY WHAT DO YOU PUT THE MONEY TO WORK TO --

TO WORK FOR. ANANT: THIS IS SLIGHTLY DIFFERENT THAN

OTHER ENVIRONMENTS. WE NEVER HAD TO GO OUT TO THE

MARKET. SOMEBODY OFFERED US THE MONEY

AND IN THIS CASE, WE TALKED A FEW INVESTORS AND TOOK US THREE

TO FIVE MONTHS TO RAISE THE ROUND BUT IT WAS NOT SUPER

COMPLICATED, MAINLY BECAUSE THE INVESTORS PARTICIPATED WERE

ALREADY GIFTING INVESTORS WHICH HELPED US. ED: [INDISCERNIBLE]

WHAT IS ALIKE DOING BUSINESS WITH OPENAI? I KNOW YOU ARE HELP

TECHNOLOGICALLY BUT WHAT IS THE FINANCIAL RELATIONSHIP BETWEEN

YOU? IS IT GOOD VALUE USING THEIR

UNDERLYING MODEL?

>> DEFINITELY GOOD VALUE FOR US WHERE WE CAN HELP OUR CUSTOMERS

QUICKLY. FROM A PERSPECTIVE OF OPENAI,

GIVEN ENVIRONMENTS LIKE BANKS, [INDISCERNIBLE]

WHAT IS PRIVACY, SECURITY, THE MODELS IN A WAY IT IS COMPLIANT

BUILDING AND THESE REQUIREMENTS. THAT IS WHY WE BUILD DEEP

RELATIONSHIP TO MAKE SURE WE CAN RUN IT THAT WAY. ED:

DREAMS OF GOING PUBLIC?

>> YES. ED: ONE WORD ANSWER. CAROLINE: WE GOT THE MEMO.

INSTA BASE CEO, THANK YOU FOR SPEAKING WITH US.

SO MUCH MORE AHEAD FOR THE FOCUS ON AI AND THE VENTURE

CAPITAL COMMUNITY. FROM NEW YORK AND SAN

FRANCISCO, THIS IS BLOOMBERG. ♪

CAROLINE: WELCOME BACK TO BLOOMBERG

TECHNOLOGY. I'M CAROLINE HYDE. ED: I AM ED LUDLOW.

LET'S GET A CHECK IN ON THE MARKETS AND A REAL MUTED

SESSION. NOT MUCH GOING ON.

S&P 500 UP .1%, BASICALLY FLAT ON THE NASDAQ 100.

ROTATION IN FINANCIALS, BOTTOM FEEDING BASICALLY GOING ON.

NOT MUCH OF A CLEAR CATALYST AS WE HAVE HAD IN RECENT SITE --

RECENT SESSIONS. A BUY COUPLE BASIS POINTS.

BITCOIN STABILIZING WHEN THE HEADLINES CAME OUT ABOUT THE

SEC SUING COINBASE, THERE WAS A KNEE-JERK REACTION ADDING TO

THE EVENTS OF THE LAST ONE HE FOUR HOURS AND SEC LOOKING AT

BINANCE BUT WE RECOVERED . IN TERMS OF THE INDIVIDUAL

MOVER, ONE TO THE DOWNSIDE. GIVEN ITS SIZE AND MARKET CAP

AND WAITING, LOOKING AT APPLE, TRADING NEITHER HERE NOR THERE,

A LOT OF THE STREETS SAYING THE ANNOUNCEMENT FROM OVI WDC, THE

SPECIFICS ON THE VISION PRO MIXED REALITY HEADSET IS PRICED

INTO THE STOCK OR IT IS A CELL THE NEWS EVENT FOR A LONGER

MARKET AND SOFTER BY HALF A PERCENTAGE POINT BUT COMING OFF

OF INTRADAY RECORD, WHICH WOULD COME OFF ANYWAY AFTER THE

EVENTS OF THE KEYNOTE. CAROLINE: IT WAS NOTABLE AT THAT KEYNOTE

HOW ARTIFICIAL INTELLIGENCE WAS PLACED IN THERE INTO THE FUTURE

OF THIS PRODUCT AND FUTURE OF THE CHIPS THAT THEY WERE

ANNOUNCING COME OF THE STRENGTH AND CAPABILITY, GENERATIVE AI

BEING ONE OF THEM. WE WANT TO DIG INTO ARTIFICIAL

INTELLIGENCE A LITTLE MORE IN THE NEXT SEGMENT AND WE WANT TO

BRING IN AN INVESTOR WHO IS A FOUNDER, DEEPLY ROOTED IN AI.

A GENERAL PARTNER COALITION OPERATORS AND SEE OWN

CO-FOUNDER OF A NETWORK OF ONE OF THE WORLD TOP TECHNOLOGISTS

THAT BUILDS ADVANCE AI SOLUTIONS OF COMPANY'S OF ALL

SIZES. AND THE COALITION MUST BE RATHER BUSY.

HOW MUCH INBOUND ARE YOU GETTING?

>> A LOT. ON BOTH SIDES OF THE BUSINESS

ACTUALLY. RIGHT NOW, YOU ARE HEARING

ABOUT LOTS OF INNOVATION HAPPENING ACROSS THE TECH

SECTOR AND WITH AI COMPANIES SPECIFICALLY, TONS OF

EARLY-STAGE DEVELOPMENT. IT IS NEVER MORE ATTRACTIVE TO

START A COMPANY AND AN AI COMPANY AND ON THE TRIBE SIDE

OF THE HOUSE, COMPANIES HAVE NEVER NEEDED MORE HELP TO

BECOME AI COMPANIES. SO WE ARE REALLY HELPING WITH

THAT LAST MILE OF DELIVERY FROM EXPERIMENTATION INTO REALLY

HELPING COMPANIES BUILD SOLUTIONS AND MARKET THE

PRODUCTS. CAROLINE: WHAT THE MARKET, INVESTORS, AND

EVERYONE IS TRYING TO DISCERN IS WHETHER THE HYPE IS REALITY,

WHETHER THESE TALKS OF CHILIS OR DOLLARS BEING ADDED TO

OVERALL GDP AND PRODUCTIVITY IS ACTUALLY HAPPENING.

WHEN YOU'RE BUILDING WITH TRIBE AI INSIDE OF CORPORATE AMERICA

RIGHT NOW, ARE YOU SEEING REAL PRODUCTIVITY GAINS?

>> IT IS STILL EARLY AND IN THE AR MARKET PERIOD BUT IF YOU

EVEN LOOK PRE-GENERATIVE AI,

THERE HAVE BEEN TREMENDOUS CHANGES FOR MACHINE LEARNING.

THERE'S PROBABLY NOT A PART OF THESE BUSINESSES RUN WITH AI

AND MACHINE LEARNING. YOU JUST MENTIONED IT YOURSELF,

EVEN THOUGH APPLE DID NOT TALK ABOUT AI EXPLICITLY, IT WAS

EMBEDDED INTO EVERYTHING THEY ANNOUNCED YESTERDAY.

AND THIS IS THE NATURE OF HOW ALL BUSINESSES WILL BE BUILT

GOING FORWARD AND IT IS JUST THE BEGINNING OF TRULY

EXPERIMENTING FROM ANY OF THESE MUCH LARGER ORGANIZATIONS, TRUE

ENCUMBER ENTERS -- ENTERPRISE PLAYERS BUILDING WITH AI TRULY

IS EXPERIMENTS AT THE PACE AT WHICH THEY ARE MOVING TO ADOPT

THESE TECHNOLOGIES IS FRANKLY UNLIKE ANYTHING I'VE EVER SEEN

BEFORE.

BUT I THINK THE GAINS FROM THEM ARE STILL IN THAT EXPERIMENTAL

PHASE AND THIS IS VERY MUCH WHERE MY THESIS IS ON THE

MARKET IS THAT WE ARE STILL SO EARLY AND THE OPPORTUNITY FOR

ENTERPRISE -- ENTERPRISES TO BECOME AI ENTER -- AI COMPANIES

WILL CREATE MASS EVALUATION FOR THE COMPANY. ED:

WITH YOUR VENTURE CAPITAL HAD ON, HOW DO YOU PLAY THE MARKET

IN REAL TERMS? $12.5 MILLION DOES NOT SEEM

LIKE A LOT, EVEN AT THE SEAT OR EARLY-STAGE.

WE JUST HAD INSTA BASE ON 2 BILLION -- $2 BILLION VALUATION

ON A COMPANY BASICALLY BUILT ON GPT.

HOW DO YOU HAVE A MEANINGFUL IMPACT AND ESTABLISH A

PORTFOLIO COMPANY THAT WILL GIVE YOU A REALISTIC CHANCE OF

EXIT DOWN THE ROAD?

>> ABSOLUTELY. THIS IS WHAT IS ON EVERYONE'S

MIND RIGHT NOW. WHEN I LOOK AT THE EARLY-STAGE

MARKET, I'M LOOKING AT PRE-SERIES A AND THESE

OPPORTUNITIES ARE STILL QUITE NASCENT.

SOME ARE PRICED AT CRAZY LEVELS AND OTHERS ARE STILL ATTRACTIVE

FROM A PRICING PERSPECTIVE. SO THERE IS A RANGE AND I THINK

WE ARE GETTING IN ON THE GROUND FLOOR.

WHAT I GET EXCITED ABOUT IS COMPANIES THAT ARE USING AI TO

SOLVE REAL PROBLEMS AND SO I DO THINK OF THIS AS THE NEW

VERTICAL SASS. AI WILL BE USED TO SOLVE

PROBLEMS FOR PARTICULAR TYPES OF VERTICALS, BUSINESSES,

BUYERS, THAT IS WHERE I THINK WE WILL SEE THE MOST GAINS FROM

A VALUATION AND TECH PERSPECTIVE LONG-TERM IS WHEN

AI IS NOT JUST USED AS A BUTTON FOR -- BUZZ WORD OR SOMETHING

TO GET BEHIND -- SOMETHING TO GET THE HIGHEST VALUATION AGAIN

BUT TO SOLVE A REAL NEED FOR CUSTOMERS AND FOR TARGET BUYERS

THAT OTHERWISE IS UNSERVED. ED:

IS THERE A SPECIFIC USE CASE OR AREA THAT YOU THINK GENERATIVE

AI OR ON DACIAN MODELS WILL UNLOCK? WHAT IS IT THAT GETS YOU

EXCITED? WHICH MAY BE UNDERAPPRECIATED

IN THE MARKET.

>> THERE IS SO MUCH LIKE HAS ME EXCITED.

I THINK WERE ALL THE FOCUS TODAY IS ON HOW FAST THINGS

LIKE CHATGPT HAVE BEEN ADOPTED, BUT THIS HAS HAPPENED BEFORE SO

LOOKING AT CONSUMER ADOPTION OF NETFLIX, INSTAGRAM, TIKTOK,

CONSUMERS HAVE MOVED TO THESE PLATFORMS AT FAST BASIS.

AI IS MOVING FASTER FOR CONSUMERS BUT WHAT IS MOST

INTERESTING TO ME IS THE SPEED AT WHICH BUSINESSES ARE MOVING

AND THAT FRANKLY IS WHAT IS SO DIFFERENT ABOUT THIS AND FEELS

LIKE A TRUE PLATFORM SHIFT. WHEN I LOOK AT PAST PLATFORM

SHIFTS LIKE DATA MIGRATION AND CLOUD, EVEN THE SASS WAVE, IF

THESE WERE WAVES, AI IS THE TSUNAMI AND THE TSUNAMI IS

COMING AND I THINK THIS IS WHERE I SEE TREMENDOUS

OPPORTUNITY BOTH FROM AN INVESTMENT PERSPECTIVE IS TO

HELP SOME LARGER COMPANIES, ENTERPRISES, AND OTHER

COMPANIES ADOPT THIS TECHNOLOGY INTO THEIR BUSINESS AND

LEVERAGE IT FOR THE FULL CAPABILITIES UNDER AI. CAROLINE:

AND THAT TAKES TALENT. WHAT IS INTERESTING ABOUT TRIBE

AI, MEMBER OWNING -- MEMBER ONLY NETWORK?

THE EXPERTS YOU HAVE, HOW ARE THEY SELLING THEMSELVES?

ARE THEY CONSULTING, ARE THEY BEING RENEW IT FOR THIS?

ARE THEY WANTING TO TAKE FULL-TIME ROLES, IS THE MARKET

EXPLODING IN ONE TIME RIGHT NOW? CAROLINE: IT IS.

WHEN PEOPLE THINK ABOUT AI, THEY THINK ABOUT ONE PARTICULAR

SKILL SET IN THIS MARKET. I THINK ABOUT THE TRADITIONAL

CLASSIC AI ENGINEERS, TAKES A PEOPLE WHO CAN BUILD THESE

MODELS. WHAT IS INTERESTING TO ME IS

ONE I DON'T THINK THE TALENT SET IS ACTUALLY AS SCARCE AS

OTHER PEOPLE DO SO WE HAVE MANAGED HUNDREDS OF THE

TOP-TIER TALENT IN THIS INDUSTRY AND THEY ARE LIKE ANY

TOP EMPLOYEES, MANY COMPANIES LISTENING IN AND CEOS ARE GOING

TO FEEL THEY HAVE SIMILAR CONVERSATIONS WITH EMPLOYEES

BUT THE THINGS THAT IMPACT THEM ARE NOT ANY LONGER COME BLUE

CHOW OR PING-PONG, IT IS MAKING AN IMPACT.

SO LOOKING FOR OPPORTUNITIES WHERE THEY CAN LEARN AND EARN

AND BE RENEW IT FOR THEIR SKILLS BUT MAKE A REAL IMPACT

AND USE THEIR SKILLS TO ADVANCE THE FIELD OF AI AND MAKE A

DIFFERENCE IN COMPANIES IS WHAT WE ARE SEEING TALENT CARES

ABOUT. CAROLINE: HOW DIVERSE IS THAT TALENT?

THERE'S A LOT OF FOCUS THAT INSPIRES AI, THE AI WILL

DISRUPT JOBS, MAINLY HELD BY WOMEN. HOW DIVERSE AND PEOPLE OF

COLOR, WOMEN ARE THERE IN YOUR TALENT FOR?

>> WE TAKE DIVERSITY SERIOUSLY AND OF COURSE I'M A WOMAN

FOUNDER WHO HAS BUILT HER CAREER IN PART FOCUSED ON

DIVERSITY, IT IS SOMETHING I DEEPLY CARE ABOUT AND, WHEN YOU

LOOK ATTACK MORE BROADLY, DIVERSITY HAS BEEN A CHALLENGE.

WHEN YOU LOOK AI, AND SPECIALTY ENGINEERING AREAS, EVEN MORE

CHALLENGING.

SO WE MAKE A CONCERTED EFFORT TO MAKE SURE WE ARE HAVING A

DIVERSE, FULL ACROSS PROJECTS AND COMPANIES.

BEYOND THAT, I THINK I SPENT A LOT OF TIME THINKING ON

INCENTIVES. SO ETHICAL AI AND BUILDING AI

THAT REDUCES BIAS WILL BE CRITICAL NO MATTER HOW DIVERSE

THE NETWORK IS BECAUSE WE ALL ARE HUMANS AND ARE INFALLIBLE.

SO HOW CAN WE BUILD INCENTIVES INTO REALLY ALL ASPECTS OF

DEVELOPMENT IN THIS FIELD? SUCH THAT PEOPLE ARE BUILDING

RESPONSIBLY AND BUILDING SYSTEMS AND PROGRAMS THAT WILL

MAKE HUMANITY BETTER AND NOT JUST COMPANIES MORE EFFICIENT.

ED: COALITION OPERATORS PARTNER AND

TRIBE AI CEO AND COFOUNDER, THANK YOU.

>> THANK YOU FOR HAVING ME. ED:

FIRST DAY IN THE BOOKS, IT IS LINDA YACCARINO'S FIRST DAY AS

TWITTER CEO. WHAT IS IN STORE FOR HER AFTER

THE BREAK. THIS IS BLOOMBERG.

♪

ED: TIME NOW FOR TALKING TECH. THE JAPANESE GOVERNMENT IS

PLANNING TO TRIPLE DOMESTICALLY PRODUCED CHIPS BY 2030 WITH A

FOCUS ON ECONOMIC SECURITY MEASURES AND ADVANCED

TECHNOLOGY LIKE GENERATIVE AI. TSMC JUST 10 MINUTES OUTLOOK

FOR 2020 LOOK -- 2023 CAPITAL SPENDING IS A MAIN CHIP MAKER

TO APPLE GRAPPLING WITH SOFT DEMAND FOR SOFT PHONES IN

PARTICULAR BUT ALSO COMPUTING CHECK.

TSMC REAFFIRM PROJECTIONS FOR REVENUE IN THE FIRST HALF OF 22

ANY THREE WHICH WILL DECLINE BY ABOUT 10% IN U.S.

DOLLAR TERMS. AND BAIDU, A COMPANY THAT IS PROVIDING

SERVICES TO MORE THAN 150 MILLION STUDENTS AROUND THE

WORLD HAS SKIPPED PAYMENTS ON A $1.2 BILLION LOAN.

ESCALATING A CONFLICT WITH LENDERS.

THE FIRM SAYS IT WILL NOT MAKE ANY FURTHER PAYMENTS TO LENDERS

UNTIL THE DISPUTE IS DECIDED IN COURT. CAROLINE? CAROLINE:

FASCINATING ARRAY OF STORIES. LET'S GO EVEN MORE GLOBAL AND

TURN TO ONE OF THE MOST READ STORIES ON BLOOMBERG, TWEETED

ABOUT GOING VIRAL, A SHORT MERGER BETWEEN A PGA TOUR AND

SAUDI BACKED RIVAL. LET'S TALK ABOUT THAT IN THE

MIDDLE EAST KINGDOM MONEY, INCREASINGLY INFLUENCING NOT

JUST OUR WORLD OF TECH BUT THE WORLD OF SPORTS.

SCARLET FU -- SCARLET FU RUSHES TO TELL US ABOUT THIS AND THIS

SEEMS LIKE A SUDDEN CHANGE COMING FROM THE PLAYER.

>> COMPLETELY BECAUSE THEY WERE LOCKED INTO THIS VITRIOL AND A

LOT OF CHARGES FLYING BACK AND FORTH, LAWSUITS BETWEEN THE TWO.

THEY ARE ENTRENCHED IN THEIR SIDES. ARGUING THAT LIV GOLF WAS

COMING IN AND STEALING WAY PLAYERS WITH LOTS OF MONEY

WHICH IT WAS DOING AND LIV GOLF SAYING THE PGA TOUR WAS ACTING

MONOPOLISTIC LEE I BANNING ANYONE FROM PARTICIPATING IN

THE GOLF TOURNAMENT FROM PLAYING IN THE PGA TOUR.

SO THEY WERE SUING EACH OTHER AND IT LOOKED LIKE THIS BREAK

IN THE SPORT, A CIVIL WAR IN THE SPORT.

ALL OF A SUDDEN YOU GET A SURPRISE MERGER WITH THE TWO

SIDES SAYING ALL THE LAWSUITS WILL AND AND SAUDI ARABIA

SOVEREIGN WEALTH FUND WHICH BACKS THE GOLF TOUR WILL BE THE

TORMENT OF THIS UNNAMED COMPANY AND THE PGA TOUR WILL POINT --

APPOINT THE MAJORITY OF THE BOARD. CAROLINE:

SO IF WE GO WITH SPORTING ANALOGIES, HAS SOMEONE ONE AND

IS IT LIVE?

>> IT IS NOT CLEAR BUT IT WOULD SEEM THE PGA CONCEDED HERE

BECAUSE IT WAS STAKING THIS

CLAIM SAYING WELL LIV WAS DOING WAS THE TRADITIONAL PGA GOLF

AND LIV WAS COMING IN AS AN UPSTART.

WITH SAUDI MONEY IF USING MONEY IN THE TOUR, YOU CAN MAKE THE

ARGUMENT.

LIVE DID NOT HAVE BROUGHT TESTABILITY FOR TOURNAMENT.

THEY SIGNED A BIT WITH C W NETWORKS -- A DEAL WITH TWO YOU

IN A COURT'S -- CW NETWORKS. THEY WERE NOT GETTING A LOT OF

YOURS AND THEY WERE NOT ATTRACTING A LOT OF SPONSORS.

CAROLINE: MAYBE HAD QUITE A LOT OF

VIEWERS ON YOUTUBE. THIS DOES FEEL LIKE SOMETHING

WE TALK ABOUT THEY IN AND DAY OUT OF THE POWER AND IN A FEW

POCKETS, PARTICULARLY SAUDI ARABIA, AND ULTIMATELY THAT

BRINGS POWER AND BOARD MEMBERSHIP AND A VOICE. ED:

IT BRINGS A VOICE. IT IS A DEBATE RAGING ON.

THANK YOU. THEY DOCUMENTED THIS WHOLE SAGA.

YOU KNOW IT'S CRAZY? HOW MANY GOLF FANS THERE ARE

RIGHT NOW. YOU HAVE GOOGLE TRENDS,

IMMEDIATE SPIKE IN SEARCHES ON THIS TOPIC FOR ALL-TIME DATA.

HOW MANY PEOPLE REALLY PLAY GOLF AND ARE SEARCHING FOR IT

ON GOOGLE TRENDS BUT ALSO IT IS THE MOST TRENDING THING ON

TWITTER IN THE U.S..

>> BEFORE THE PANDEMIC, IT FELT LIKE GOLF IS GOING INTO THIS

DECLINE WHERE EVERYONE WAS

SAYING THIS IS A STAUNCH SPORT, AND THEY FIND -- NEED TO FIND A

WAY TO FIND YOUNGER VIEWERS. AND COVID WAS KIND OF A REVIVAL

IN THE WORLD OF GOLF. IT WORKED OUT THAT THE

DOCUMENTARY HAPPENED ALONG WITH THE LIV GOLF DISPUTE SO PLAYERS

ARE TALKING ABOUT IT, DELIBERATING OVER IT, PRESS

CONFERENCES WHERE THEY DID NOT WANT TO ANSWER QUESTIONS SO

TIMING WISE, IT WORKED OUT FOR GOLF.

FOR THE PGA TOUR, IT FELT LIKE IT WAS BEING ENCROACHED UPON BY

LIV GOLF AND I GUESS NOW IN RETROSPECT IT'S BEEN -- SEEMS

INEVITABLE SOMETHING HAD TO HAPPEN BETWEEN THE SIDES BUT

THEY WERE DUG IN AND DID NOT SEEM LIKE THERE WAS DAYLIGHT --

ANYWAY THE TWO COULD COME TOGETHER. ED:

I ASKED NETFLIX FOR VIEWERSHIP FIGURES AROUND IT BECAUSE I WAS

CURIOUS HOW MANY PEOPLE WATCHED IT AND THEY HAVE NOT REPLIED

YET. I WILL BRING YOU THAT DATA. I GUESS IT COMES DOWN TO MONEY.

>> YES. ED: WHAT DO KNOW ABOUT THE

INVESTMENT AND WHAT IS AT STAKE HERE?

>> WE DON'T KNOW HOW MUCH SAUDI ARABIA WILL PUT INTO THIS NEW

UNNAMED COMPANY BUT THEY WILL HAVE A STEAK AND IT WILL BE A

MINORITY STAKE. WE KNOW REPORTEDLY THE

SOVEREIGN WEALTH FUND PUBLIC INVESTMENT FUND REPORTEDLY MADE

A $2 MILLION INVESTMENT IN GOLF AND BACKED THE GOLF LEAGUE AS

WELL SO IF MORE MONEY WAS NEEDED THEY WOULD PLOW IT INTO

IT. MY UNDERSTANDING IS LIV GOLF DID NOT MAKE A LOT OF MONEY IN

ITS FIRST YEAR, 75 MILLION AT MOST IN REVENUE LAST YEAR.

THAT BECAUSE BACK TO THE LACK OF BIG SPONSORS BECAUSE THE

SPONSORS WERE COMMITTED TO THE PGA TOUR.

NOW THAT CHANGED WITH THE TWO SIDES DECIDING TO COME TOGETHER.

THERE'S A LOT OF QUESTION MARKS ABOUT THESE LEGAL BATTLES.

EVEN THOUGH THE TWO SIDES DEFIED -- DECIDED TO END

LAWSUITS, THE DEPARTMENT OF JUSTICE GOT INVOLVED AS WELL

AND THEY ARE INVESTIGATING THE PGA TOUR FROM A LOT --

MONOPOLISTIC ANTITRUST BEHAVIOR AND MAYBE THEY WILL COME AND

SAY THE TWO SIDES CANNOT MERGE. ED:

IN THAT INSTANCE, BECAUSE THE PJ TOUR SET TO THE PLAYERS YOU

CANNOT GO. IT IS AN AMAZING DYNAMIC.

>> YOU CAN'T COME BACK TO US. ED:

WHO WOULD HAVE THOUGHT ACROSS 18 HOLES. SCARLET FU, THANK.

STILL AHEAD, FULL STATE IN THE BOOKS, LINDA'S FIRST DAY AS

TWITTER CEO. MORE ON WHAT IS IN STORE AFTER

THE BREAK. THIS IS BLOOMBERG.

♪

CAROLINE: THE FIRST DAY IS IN THE BOOKS

FOR THE NEW TWITTER CEO, DAY TWO.

A ROCKY TENURE FROM ELON MUSK. LET'S DIVE DEEPER INTO WHAT

LIES AHEAD.

SARAH FRIER JOINS US. OPTIMISM ABOUND WHEN YOU LOOK

AT HER TWEETS WOULD ULTIMATELY SHE'S GOT A BIG SORT OF AREA TO

STABILIZE, PARTICULARLY WHEN IT COMES TO IMPORTANT EXECUTIVES

LEAVE IN THE TRUSTED SAFETY PART.

>> THAT IS AN UNDERSTATEMENT. SHE HAS A HUGE TASK AHEAD, SHE

HAS ALL THE ADVERTISERS WENT BACK OVER, THE NEW YORK TIMES

REPORTED MONDAY TWITTER AD REVENUE IS DOWN 59% FROM THE

EARLIER BASED ON INTERNAL DOCUMENTS.

THAT IS HER JOB TO RESTORE THAT AND [INDISCERNIBLE]

LIKE MADE HER TWITTERS SUBSCRIPTION BUSINESS TWITTER

BLUE AND SHE HAS TO DO ALL THAT WITHOUT THESE KEY EXECUTIVES

WHO ARE IN CHARGE OF KEEPING THE SITE HOSPITABLE TO

ADVERTISERS BY REMOVING VIOLENT CONTENT, PORNOGRAPHY, HATE

SPEECH, AND FRANKLY USERS DON'T WANT TO POST HER TWITTERS --

POST THEIR TWEETS EITHER. IT WILL BE AN UPHILL CLIMB FOR

HER. SHE SEEMS QUITE ENTHUSIASTIC IN

HER PUBLIC TWEETS BUT SHE HAS TO. ED:

WHAT'S INTERESTING TO ME AS HER USE OF TWITTER SO SHE IS

WELCOMING NEW HIRES FROM NBC UNIVERSAL BY TWITTER, SHE DID

THAT I THINK SUNDAY FOR EVEN DAY ONE.

YOU KNOW THIS LANDSCAPE AND YOU KNOW THE EXECUTIVES THAT

OPERATE IN SOCIAL MEDIA, WHAT YOU MAKE OF HER USE?

IT IS ALMOST MUSKY AND IN A WAY. >> SHE HAS TO USE THE PRODUCT

TO SHOW -- SHE HAS TO SET AN EXAMPLE WITH THE OTHERS.

SHE WILL BE SELLING TWITTER AD SPACE TO THE PEOPLE SHE SOLD

NBC AS PHASE TWO. ONE OF THE THINGS SHE WOULD SAY

WHEN SHE WAS AT NBC UNIVERSAL IS THIS IS CLEANER THAN SOCIAL

MEDIA, WHAT YOU SEE IS WHAT YOU GET.

THESE SHOWS ARE APPROPRIATE FOR YOUR BRAND.

NOW SHE IS GOING TO HAVE TO TAKE A DIFFERENT TACTIC AND SAY

SOCIAL MEDIA IS A PLACE FOR ANYONE CAN TALK AND IT WILL BE

A LITTLE BIT DIFFERENT, ESPECIALLY UNDER ELON MUSK, AS

HE HAS FEWER STAFF WHO CAN IMPLEMENT SOME BRAND SAFETY

MEASURES ON SITE. SHE WILL HAVE TO SELL THAT.

OPPORTUNITIES ARE COMING UP FOR ADVERTISERS TO SPEND ON TWITTER

AND WE WILL HAVE TO SEE IF THEY RESTORE BUDGETS. ED:

SHE TWEETED BAY AREA VIEWS COMING SOON SO MAYBE SHE IS

MOVING OUT HERE. OUR THANKS TO SARAH FRIER.

TWO DAYS IN, THAT DOES OVER THIS ADDITIONAL "BLOOMBERG

TECHNOLOGY." CAROLINE: HOW ARE PODCAST, YOU CAN FIND

ON THE TERMINAL, ONLINE, WHEREVER YOU CHOOSE TO DIGEST

AND IF YOU GO TO SOME OF THE HISTORY AND THE MAKING THEY

CALLED IT ON THE TWEETS, MORE ON THAT SOON TO COME.

THIS IS BLOOMBERG. ♪