From Mahart where Innovation, Money and power Collie in Silicon Valley, Nbonn.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Live from New York.
This is Bloomberg Technology coming up, Bitcoin blast past one hundred thousand dollars. We dig into the positive sentiment, including the sec share announcement.
Plus it's TikTok for TikTok as.
A social media joant anxiously awaits the legal decision on its upcoming US ban and geopolitical risks across Europe and Asia are bound, but US stock stay near records. Can tech keep American exceptionalism alive? But first, let's checking on these markets, because that exceptionalism just takes a turn to the downside, off by two ten percent on the Nasdaq one hundred. But look, we are so close to the
record highs that we saw across benchmarks yesterday. We have some nervousness ahead of the non farm pay rolls tomorrow as job as claims come in today, and we still look at what's happening geopolitically speaking, Chips to the downside, Tesla to the upside as it gets basically a bit more optimism coming from Bank of America as they go to visit that gigafactory, move in on some of the
other asset classes of choice. Here on the Tech show, bitcoin one hundred thousand, we're currently one hundred and one thousand. We went past one hundred and three thousand earlier, up three point six percent. Why a whole fledge of positive sentiment. Maybe it's a little bit to do with FED chair J Powell yesterday a deal book saying it's akin to gold. We've also got putin saying that he wouldn't be in any way restraining crypto. But then you have the all
important Paul Atkins announcement announcement. Let's go to that with Bloomberg's Mike Shephard now because we do have someone from the Trump administration future administration SEC chair pick Paul Atkins, and just give us his background.
Why is he seen as crypto friends.
Well, he has emerged after years of being a well known regulator here in Washington. He previously served on the SEC as a commissioner during the George W. Bush era, so he has the street cred as a regulator. But more recently he has emerged as an advocate for digital currency and fintech, and so naturally investors around the world were so encouraged to see Donald Trump select him as the incoming SEC chair. During the presidential campaign, Trump really
advocated for changes in US policy toward digital currency. He wants to make the US a crypto hub, and one of the keys to that is making changes at the SEC, which under President Joe Biden, has cracked down on this market after seeing some excesses we saw during twenty twenty two with fraudulent behavior that the current agency chair, Gary Gensler,
singled out. But Trump has called for a change, and the crypto industry investors who supported his candidacy also wanted to see a change of the agency, hence their encouragement.
Now and as you say, someone who has not only served on the SEC before as a commissioner, but someone who then gone on to advise fintech, in particular crypto companies. But just tell us a little bit more other than crypto. How else is he going to be facing the financial markets?
Well, I'm glad you brought that up, Caroline, because he is far from a one trick pony. As I said, he is a seasoned regulator, one of the analysts that our colleagues spoke to yesterday after he was named, referred to him as the godfather of conservative capital markets ideology,
and that is a big statement. But he will be coming in there with an agenda to make broader changes at the agency which oversees how markets report to investors and how companies report to investors in markets, and we will be looking possibly for changes and disclosure rules and also easing up perhaps of some the heavier fines that
we've seen the SEC and POST under Gary Gensler. That is something that Atkins has singled out in the past, and we can look to him to try to target that again in the future.
Mike Shephard, with all the context, we thank you for more on the border implications for the crypto market. Katherine Dowling's with us bitwise asset Management, General Counselor and chief compliance officer. And Catherine, I mean, just first and foremost more than one hundred thousand dollars for people who've been in crypto for a long time, that must feel extremely vindicating.
It does, and thanks so much for having me this morning.
It was fun to watch it go over six digits last evening and to see it continue to hold.
Today when you think of the fund side on one, but also then the realities of what perhaps pull Atkins could mean. Dig in a little bit to the SEC announcement, what you made of it?
Yeah? Absolutely.
First off, leading up to this announcement, really all the names that were floated were positive.
So we had that.
We knew it was going to be better, So there was really no wrong answer. But in this choice, it's a great choice. Quite simply, you have somebody who can hit the ground running. He has been a commissioner before. He knows how the commission works. And one really important factor that we're hearing about Paul Atkins is he gets along with people. You can't underestimate how important that is. He needs to be able to work with the industry, he needs to be able to work with lawmakers.
I've been at those.
Hearings in Congress where it was antagonistic. Questions weren't being answered, eyes were being rolled, and this was the environment in which Crypto was trying to achieve regulatory clarity and it just wasn't going to happen with that back and forth and the tension that was created in the Gensler era.
So we are very much looking forward to a person who can come in, hit the ground running, work with the other commissioners, and hopefully also have a dialogue with the CFTC and with lawmakers so in the new Congress we can get some clarity, we can get some forward
motion stable coin bill market structure. So, quite simply, this is an excellent choice and he's another great ad to the you can't fault regardless of your politics, you can't fault the economic team that is being put together by the transition team here.
Catherine, I want to just speak to the cynics out there. People are now out oh great, crypto's got a pro crypto sec chair, or all hell's going to break loose. We're going to see yet more fraudulent behavior that they believe goes on in space. I want to ask you because specifically, yes, you're in the ecosystem, but you're someone who comes from a federal prosecutor background. You're someone who's worked for US Attorney General offices in California.
So speak to that concern.
Here that we're suddenly going to see rip roaring in crypto with no holds barred.
Great, Absolutely, you're going to have that approach.
You're going to have the folks who are going to say, oh, great, there's going to be no regulation. But if you actually look the folks in the industry, we aren't asking for no regulation. We're asking for clarity for regulation. We're not just enforcement actions. And I know we've heard that quite a bit. What does that really mean? If you break it down, the enforcement actions are expensive, they're limited to
the case and point. You don't get a broader rule that will help businesses who either haven't engaged with the industry or trying to engage.
In the correct way.
So having been at the attorney's office before and having worked very closely with the SEC the light doesn't flip overnight. It's not suddenly that all the cases or are going to disappear.
Into the ether.
It's just that you're going to have a better dialogue, you're going to get collaboration, and you're going to have a more positive approach.
To how we get there. It's not we're not getting rid of everything. We're just going to.
Get there in a more collaborative fashion, and that's what you need.
What's interesting is we are seeing actually some of the crypto related companies just turning to the downside. A little bit a lot of run up into that announcements, so perhaps a bit of profit taking going on, Catherine, But spell out exactly what some of the you talk about, certain laws and regulations that need to be put in place. We hear about stable coins being tackled first and foremost. Is that the number one line on the agenda.
From the SEC.
Where do you think the first rules are going to come?
Yeah?
I think stable coin legislation coming from Congress will probably be the first one out, just because it's a smaller, niche er piece and there's been bipartisan support, So I think that's going to be the first, the first mover. The market structure legislation are referred to will take a little longer.
But it's a more of a dialogue has to happen.
That's the definition, that's who is going to be the regulator depending on where these assets sit from a definitional standpoint along the spectrum. So that'll take a little longer, but we'll have some more forward motion on both of those fronts.
Is there any risk here could we see pill Atkins not take the role, not be acknowledged for the role.
Well, there's always risk, but as I said, you know, we're hopeful that that goes smoothly. I see no obstacles out there that should block it. However, as I mentioned earlier, there are a list of other folks, all of whom
would be great choices. I'm really liking the Pollakin's choice, given his involvement with the industry, his understanding, and quite frankly before, his demeanor and ability to collaborate and work with others, which is quite simply important in having a negotiated position with regard to some of this regulatory action.
Catherine Dowling, great to have you join Bidwise Asset Management.
We appreciate it.
Elsewhere on Capitol Hill, Elon Musk is, in fact there today stoken congressional enthusiasm. He hopes for his pretty ambitious effort to sash at least two.
Trillion dollars in the federal budget.
Now, Mosk and his partner in the initiative, former Republican presidential candidate Vivit Gramswami, plan to meet with groups of lawmakers, followed by a session that all Republican House members have been invited to. Coming up, we'll discuss the impact the French government TERMOL on the country's businesses. And startup sector
that's next. This is the Bloomberg technology. I think we're just going to hear from the National Rally leader Marine la Penn now, who is speaking with Bloomberg earlier today.
Just take a listen because you need to l DI Missions Library.
What I said was that the president's resignation is a personal decision for him and can only take place in my view, when a political crisis happens or an institutional crisis can no longer have any other solution than the resignation of the President of the Republic. What I do wish, on the other hand, because for sure there will be new legislative elections in the next few months, is that we work on a voting system by then that enables us to have a real majority, whatever that majority may be.
But the country needs a majority. It can't live for months and years with three blocks, which in reality can't implement a policy.
That was Marine Lapin of the National Rally commenting on Macron. President Macron's position, after, of course, he has been dismissing growing calls for his own resignations from politicians across the political spectrum, Macron came out saying he will serve out his second term in full. He's set to talk further at eight pm Local time, that's two pm here in
New York. But let's just discuss the impact of all this political drama on French businesses, on tech companies Bloomberg's benwell, butflo does.
That for us? And how a sentiment at the moment.
Is there a moment of crisis among executive boards?
Yes, I mean it's a moment of uncertainty and as we know, business leaders don't like uncertainty then like to be able to focust their.
Budget for next year, etc.
Actually, that uncertainty started this summer in June when Macron called the unexpected app election, So that's that's ongoing. Basically, Barnier, the Prime Minister, was preparing a budget for next year that was actually going to slash some helps for innovative startups on R and D, etc. So now there is a certainty of it's going to happen, we have there is a few weeks left for Macon first to pick a new prime minister and then to vote if possible,
the budget. So yeah, like startup leaders and companies in general waiting to see what's going to be in that budget. Or if we are going to continue with this year's budget, which could be reconducted through next year through special law Benoir.
It's notable that leaders like Eric Schmidt, course former Google CEO and now focused on geopolitics as in particular, has come on this show and said France is the standout in Europe in terms of getting things done, having a really healthy ecosystem where companies like Mistral for ai can thrive.
Has that been something being questioned late.
It's not been questioned, but you're right, Like Macrome started about seven years ago when it was first elected, a sort of push for what he called startup Nation. He helped companies to hire foreign scientists, for foreign companies to come to France to start their business. He's been doing some helps to get visas for foreign tech workers, for example. And then the push in AI led by open Ai led to new French startups trying to rival with open
Ai like Mistroll. As you said, Macron is also going to be organizing a World summit in February or an AI. There certainly is this push that companies hope can continue, and obviously the political situation is not the best. Just to ensure that this momentum, which is quite fragile, can keep going.
Benwa, It's great to have you. Bernan Bardelo on the impact in France at the moment. Sticking with international politics, South Korea's main opposition later says it may be difficult to get enough support from the ruling party to impeach President yunsuk yuil this week after his declaration of martial law, but he remains committed to removing the president.
Democratic Party leader.
Lee Jim young sat down for an interview with Bloomberg earlier today.
Here's what he had to say. Chung Chung kungu chor Kumnia.
Ultimately, politics is done by the people, and even if the result of the vote may go against the world the people in the current situation, the vote result may change next time if individual members of the parliament are pressured heavily by public opinion. That's what I think important.
For companies such as Samsung, Skhiinex. Of course tech more broadly, let's discuss the impact of all this geopolitical uncertainty on tech markets.
More broadly.
J Jacobs us head of Thematic Active, BTF and black Rock, and thus far J hasn't had much impact that US stocks have continued to show their exceptionalism. We've had record high's yesterday amid global turmoil.
What do you make of that?
Well, actually, the tech sector in the United States is one of the most geopolitically exposed sectors out there. About sixty percent of the revenue of tech comes from overseas. So one of the ways that we've been looking about geopolitical fragmentation is can you really tilt your exposures within the tech sector to companies that buy in the United States, build in the US, cell in the United States really
to try to isolate some of that geopolitical risk. I think it's very present in the tech sector in particular.
Where would that end.
Up leading you which companies I mean, first and foremost, you might think, well, those that have been benefiting from the Chipsact, who've been building here in the United States, but then inter hasn't exactly been having the best of times of it.
Well, it's coming from a range of companies, just kind of across different industries within technology. I mean, I think if we look at artificial intelligence, we see that a lot of leadership is with US based companies. For example, you could look specifically at data centers and power companies as being really important parts of the AI ecosystem but are very localized to the United States. You're getting some of that isolation from geopolitics. We even brought out an
entire fund based off of this strategy, I Etc. Which is really looking at the tech sector but tilting towards those US kind of very domestic focused companies to isolate geopolitical risk.
That's really interesting.
The infrastructure build out is one that many have turned to other than just thinking okay, in Vidia chips and shovels. We then think about the next layer down, the energy, the companies, But how many people are asking you, well, what about application layers?
What about the next frontier of AI?
That's really where a lot of the conversations are going. I think if we look at the last two years, it's been a huge focus on the Magnificent seven, and it's been a really concentrated rally within artificial intelligence. We think as we enter the third year of what we're really calling the build phase of artificial intelligence, this is when the markets are going to recognize that this is something much bigger that's going to impact a wider range
of technology stocks. A wider range of semiconductor stocks, the power stocks. It could even impact cybersecurity stocks as data gets more valuable and needs to be protected. And you can even look at adjacent industries in financial services and healthcare where AI can really create more productivity and efficiency. So I think we're going to see a transition in twenty twenty five to really a broadening of that artificial intelligence story.
How much of the story is starting to pick up back in crypto for you as.
Well, Jay, Well, it's significant. You know, of course bitcoin passing one hundred thousand is a significant milestone, but really you have to take a step back and look at
the broader picture of why is this happening. You know, I think there's certainly some anticipation of more friendly regulatory tellens, but also in your previous segment, you're just highlighting some of the geopolitical risk around the world in Europe and Asia, and in a lot of ways, professional managers which are really just starting to access digital assets for the first time with our launch of ibit our Bitcoin etp are
thinking about it as a hedge in their portfolio. Behaves very differently from stocks and bonds, and if you see more geopolitical risk Bitcoin could really benefit.
What's interesting about your role is not only thinking about strategy or leadership clients, but you're also thinking about the international ATF offering as well. And I'm just interested about whether anyone is betting on outside of the US.
They are, but in more targeted ways where we've seen some really significant flows in the past year. Specifically looking at India is really a play on changing supply chains, particularly if you look at a lot of the reshoring that's happening in the United States. There's been an effort to build more here domestically, but also to diversify supply
chains geographically, and India has been a major beneficiary. Just like we have a Chips Act in the United States, they've been focused on building out more chip capacity as well as well as building out more tech manufacturing. So India has been a big beneficiary Mexico as well as you look at nearshoring and the interplay of growing trade relations between the US and Mexico.
Fascinating. J Jacobs, thanks so much for that. US Head of Thematic and Active ETF over a black Rock AMD CEO Lisa Sue spent the better part of her ten year career engineering, one of the biggest turnarounds in Silicon Valley history. Now just preparing for a battle against Nvidia, Emily Chang sat down in the CEO at MD's headquarters in Austin, Texas to discuss the bets she's.
Making to compete.
A long view on the global chip supply chain and even her distant family link within video CEO just one take a listen.
In Vidia is seen as the dominant force in AI right now, and AMD is widely considered the next best option. Is that good enough for you?
Do you like being seen as the underdog?
I wouldn't call it a like or dislike.
What I would say is, you know, AMD has had a history of doing amazing things, and from that standpoint, we've always been in this place where we haven't necessarily had same amount of people that you know, other larger companies have, but we've certainly punched well above our weight in terms of technology capability, in terms of impact on the industry.
This is the most complex highest performance computer.
People are kind of obsessed with the fact that you and Jensen are distant cousins.
I know that you are competitors, but do you ever treat.
Notes well, first of all, Jensen is brilliant, so I fully admire him for that. We were really distant, so we didn't grow up together.
You know.
We actually met at an industry event, so it wasn't until we were well into our careers.
So no family dinners.
Just to put the rumor to rest.
No family dinners. And it's an interesting coincidence.
So many of your customers are building their own chips hyperscalers like Apple and Meta and Google and Microsoft and Amazon.
Is that a threat?
This is a huge market, Emily, There's like more than enough chips for everybody to build. And the beauty of this is once recognized trips are so important. Yes, so it's natural that they're going to have their own capability.
Has the shakeup of a very established industry. Surprised even you.
It has a little bit, I have.
To say, Mdco lis to c there alongside Blue Megsmily Chang. Check out the full episode of The Circuit tonight on bloom Meg TV ten pm Eastern or stream on Bloomberg Originals a pm Eastern.
Now it's time for talking tech.
First up, all chips TSMC is in talks of the Nvidia to produce Blackwell AI chips at TSMC's new plant in Arizona. It'scording to Reuter's now TSMC is said to be making preparations to start production early next year. Plus, Apple's major manufacturing partner, fox Conn, reported a second consecutive month of just single digit sales growth, raising concerns that demand for AI infrastructure won't be able to offset weak
iPhone sales. Apples historically accounted abound of fifty percent of hon Hui's overall sales, and the EU's new competition chief says a potential split of Google's businesses is still under consideration.
Joyce of Ribeira, who started.
Her five year term this week, said she aims to build on the legacy of her predecessor, mar Great Vestia. Welcome back to Blue Meg Technology. I'm Caroline Hide in New Yorker. Quick check on these markets because while we're teetering around record highs, the NASAC is only off by eleven points, and a's that one hundred that is the big benchmark for big tech.
We are being put to the upside.
By the likes of Tesla, for example, chip stocks. On the downside, though we're looking at bitcoin is the real punchmark that we're all looking at.
In the moment. It's now got an ecosystem worth.
Two trillion dollars, I mean actually smaller than some of the biggest tech companies, but still we have run up past one hundred thousand dollars, up another three and a half percent today. Move on and have a look at some of the individual movers within that Nasdaq one hundred and some of the benchmarks. Now the biggest points dragged to the downsize as Synopsis Integral to chip designed chip manufacturing basically to testing your designs and numbers came in
a little bit weak. We have seen dragged down for the Electronic Design Automation Software Company today, first called a forecasts weekend, then expected Intel off by three point four percent. Maybe some of that moon music around chips pulling it lower. There has been some interesting news in terms of its board trying to shore it up, and the Microchip CEO comes on. So does a former ASML chief executive too, so two key experienced operators coming onto the Intel board as they seek a new CEO.
Micro strategy actually just turning.
To the downside of by one point seven percent, having been rising earlier. But we are going to dig deep on all things micro Strategy after what has been a phenomenal run up in the stock. Why because it's basically a bitcoin proxy. We can talk about that. We've both us and Chen and Jen. I mean, MicroStrategy has been beloved of the retail community, but actually some institutional players have been getting in on Michael Saylor's bitcoin base.
Yeah, exactly.
So I just published our story today about how micro strategy has become the hottest trip right now with war Street. If you look hash file, managers stare buy in the
convertible bonds. That the other instrument because micro Strategy has this plan about keep raising capitol right to fund is bitcoined buying, and so they have already raised six billion convertible bonds and for hatch funds, this is a perfect instrument for them to play in market neutral arbitcharge bat and this is a complex bet, but the essential part of it is to bet on the volatility. So they're writing on the volatility of the underlying of micro strategy.
As we see today, there's.
A big jump right like at the open MicroStrategy was up like almost nine percent when bitcoin hits new record. So MicroStrategy move on that lots of price points, and they just make the convertible arbitcharge trade much more appealing to this headphone group.
We were talking about how the retail frenzy has been there and actually a lot of people playing leverage bets on MicroStrategy getting into two x three x the ETF exposure. She grew quite a difficulty from a liquidity perspective in the market.
Is there any talk about what.
Is it this volatility or playing this volatility when you're looking at institutional and retail.
Sure, yeah, I would say micro strategy is just no short of volatility, right because it's a bitcoin proxy, so you know the volatility rise on the bitcoin pricing, but also the premium it's bitcoin holding because it's now training on two hundred percent wars and it's the it's like the value of bitcoin it holds, and you know those things could also move around. And then you have the retail that's buying the ETF leveraging ETF two times right
along two times shots. That's that, and then the institution and I think in a way that the company, even it's alf told that it's more volatizing any sm P five hundred stock. So that's where you know the money flow coming from, and people are just riding on the volatility and a retail frenzy.
According to Breenberg, fourteen percent about standing shares are currently shorted. But thus why that has been a painful trade. Thank you so much, All things MicroStrategy. With the Jinschen, they're another story. We're tracking Chinese hackers compromised eight American telecom companies as part of a wide ranging espionage effort to gather intelligence on prominent US citizens. That's according to Biden
administration officials. Here for the details, Bloomberg's Kelsey Griffiths and kind of absolutely shocking, lady that eight have been compromised and we can't seem to get them out.
That's exactly right, Caroline. What we do know, and the details are pretty scarce on the ground right now, is that multiple US telecoms have been breached in this seemingly very wide and broad campaign to burrow into our telecommunication networks and glean really important and valuable details about public officials and about life.
In the US.
We also know there's worries about both incoming president and vice president in terms of being compromised on their communications. Just talk to us about what the CEOs have been saying. We understand that Ateen TCEO has been speaking with other law makers who has.
Come out and sort of talked about this publicly.
Though that's right, there haven't been a lot of companies that have so far come out publicly and talked about this. T Mobile last week became the first carrier to publicly share details about what they had seen on their networks and sort of some of the markers of that threat, and they spoke with me about that exclusively. They also put out a blog post last week that details some
of those threats. So I think that you know, what we're seeing as a really sophisticated attempt and T Mobile caught it early, but some of the other carriers, it seems, weren't so lucky.
Kelsey fascinating reporting and I think Senator Marco Rubio, who's eventually, of course meant to be sexual mistate talking about how this is a as it gets Kelsey Griffiths on all things hacking coming up, does.
The unicorn status need to be reevaluated?
And we're discussing that with Rebecca Line of co founder and general partners of Canvas Ventures.
That's next This is Bloomberg Technology.
In the last year, more than fourteen hundred startups were valued at more than one billion dollars, but actually only fifteen percent claim profitability. That's how our next guess is measuring well the fact that these numbers don't seem to be a measure of real success anymore, unicon status, how
do we reevaluated? And one of the new markers for that success, Rebecca Linn' pleas to say, co founder and general partner of Canvas Ventures, we steal all your great statistics, Rebecca, but their statistics are shocking, and I'm interested as to what you think the new benchmark is and how many of those fourteen hundred actually still vindicate a one billion dollar valuation.
Yeah. I think the number I've heard is it would take about twenty years for all of those unicorns to actually make it to the public market, and only fifteen percent are profitable. And on top of that, a lot of them have been around, you know, for over twelve years, so just way too long to really hit their stride and hit profitability. I think with Jeni now, a lot of the metrics we'd seen in the past aren't really the metrics, you know, we're looking forward in the future
for success, you know, Unicorn status. I think people have said that we need a new beast. I think that's absolutely true, and they're you know, getting to that billion dollar valuation is not realy not meaningful anymore. And then on top of that, what we're seeing with GENAAI is an incredible opportunity to generate revenue quickly. We're seeing this in the statistics about how quickly companies can get to a million dollars of revenue. It used to take companies
quite a lot longer. Right now with Jeni, the median is like a less in months, right and we actually saw a company the other day that got to a million dollars of ARR in two weeks.
But it's insoluable, Like is that something it's not? None, No, I don't think so.
I think what's happened. I don't think it's sustainable. And so what we really are looking for are companies that have sort of a unique insight and very deep industry knowledge in the area that they're going into. We think that's more important than it ever was before. And I think this, you know, ar the ar ramp we're seeing which so many vcs cold were hanging their hats on
for so long. Is really ephemeral. And so you know what's happening is, you know, these big enterprise companies and consumers too are signing up and they're paying money to really, you know, really pilot you know the technology. And at the same time we're seeing massive you know enterprise companies like Salesforce, you know, highre fourteen hundred new salespeople to capture that opportunity.
How many SOI agents Rebecca on not know Salesforce?
How many Asian AI companies are you being hit within the moment?
Oh my gosh, dozens a day, dozens a day. And I think those are features. Those are features of you know, large enterprise companies in the future.
The feature is, so what is the reality? What companies do you want to see being built? What problems are you wanting to see being sold? That is unique right now?
I love that question, Thank you. Yeah, it's so exciting right now to be an venture. There are so many thesis out there that we have wanted to invest in for a very long time, and there are companies that tried to do it, but the technology just wasn't there yet. I mean a prime example you know was of a
company that was impacted by Jenai was case Texts. Case text was doing really well, they had ten thousand customers, but they couldn't fulfill the last part of their promise, which was really to truly stand in the shoes of a legal counsel. And when Jenai came along, they could do that and that was a huge unlock and why they were purchased very quickly by Thompson Reuters. Another one that we've wanted to see for a very long time is voice and I think that is the most exciting
thing about Jenai right now. And so when we were in doc Simity for many years, I just thought, you know, we should be taking the entire patient call volume, both inbound and outbound, off the shoulders of the physician's office. That should just happen. And the tech just wasn't there yet. You know, we've been looking for this tech ever since, you know, we led Siri many moons ago, right and
with Jennai, it suddenly is there. So we invested in and a company pretty recently called Parakeet, with a founder with super deep technical knowledge on the medical space, and they're doing just that. They're taking the call volume the inbound and outbound call volume off the shoulders of a doctor's practice, and that to me is really really exciting.
We listen to you because of the amount of times you're on to my dismissed the amount of times are called one of the top of vcs, but also because of the exits that you have seen a new call out case text versus M and A. We're also seen as you just mentioned, well Numena for example, which which actually managed to do the public kind of route. How are you anticipating some of your portfolio going public come tent in twenty five.
Yeah, I mean I think there the window is starting to open. There are so many companies that are that are ready. I think the market's ready. I think with the new administration, people are ready for the unlock. And I do think I we'll see the public markets start to open up. Maybe I'm too optimistic, I don't know, but I do think that that's a very viable option
for people going forward. The other thing is I think M and A. I mean, I actually prefer M and A every single time because it's a much it's just a much you know, more linear exit for founders often and so I think founders should always keep both options in mind. My most successful companies have had it very exciting IPO path, but have also dual tracked with an M and A path at the same time.
Rebecca Lynn, we thank you for pushing head to next c co founder, general partner of Canvas Ventures.
We hope to see you in that new year.
Meanwhile, let's talk about a company that's part of one of the most valuable startups out there, Bike Dances.
TikTok.
It's tripled its US shopping sales to over one hundred million dollars. The social media platform says it's app drew in one hundred and sixty five percent annual increase in shoppers for the two days between Black Friday and Cyber Monday. This comes as the app faces, of course, potential shutdown in January, as regulators fear its parent company, Bike Dance, poses a national security threat. Let's dig into that TikTok on TikTok and Dexandra Levigne is with us.
It could come tomorrow.
I mean, we've been here all week thinking that we'll get a ruling on whether or not the case can continue.
That US would ban TikTok come January nineteen.
Yeah, it is finally here. We are expecting a decision probably out of Washington tomorrow morning. And it's a really consequential moment.
It feels like it's been.
A very long time, but this is actually a hugely consequential moment, probably the biggest deal for TikTok since Biden actually signed the divestor band law back in April.
And part of the.
Reason this is such a huge deal is because if this comes to pass, this will be the first time that a foreign owned social media app has ever been banned in this country. And so and by the way, it's not just a social media app. It is a social media app used by half of the American population. And there are more people on TikTok in America than voted in our last selection.
The future administration. The head of it is on TikTok.
Many of us are on TikTok.
And I feel like the anxiety around whether it is going to be banned has just dampened away as time's gone on. But I mean, are we feeling that the US Court is going to let this continue or could they take it off the table?
You know, no one knows for certain. I think reading the tea leaves. It seems likely that the court is going to uphold this law that would potentially see TikTok shut down next month. But that doesn't mean that that's sort of the end of the line for TikTok. I think that it's probably not going to disappear off of
our phones in January. In all likelihood, if TikTok loses tomorrow, they are probably going to somehow appeal the decision, either asking the DC Circuit to take it up and hear it again, or potentially taking it to the Supreme Court.
How has TikTok been just countering this little being behind the scenes, because we haven't heard much publicly.
Well, I think a huge, a huge piece of this is actually American investors, and it's also a hugely overlooked piece. I think that you know, American investors have so much money tied up with ByteDance, which is TikTok's par and company. They have collectively billions, and so it's not just a decision tomorrow that will affect millions of people. It's also
a decision that will affect billions of dollars. And I think one really big question I've had about What's been going on behind the scenes is how will Trump's tie to some of these investors. We know that there's at least one big Republican mega donor, Jeffyass who Trump is you know, has a good relationship with big question is how are these American investors behind the scene is potentially going to affect the outcome for the app's future here.
Soakoya, General Atlantic, Susquehanna International, you name a lot of them. In a great piece today, Go and check out the Tech Daily with Alexandra Lumine and stay tuned for that decision. Open AI it's partnering with Defense Tech Company andrel on anti drone Systems. Infari has inside track and this is more of a push was seeing from open Ai to be something that serves US defense, the government particularly.
That's right.
So the company has said that they want to prioritize supporting the US government and its democratic allies in adopting AI, and a big part of that is increasing their defense partnerships.
So they have also done a partnership with the US Air Force Research Lab, They are working with Los Alamos, and they've hired a former top Pentagon official to head up their policy in that area, and also added the former head of the NSA to their board recently, so we're seeing a lot of movement in that direction.
How do employees feel about it, because it can sometimes do controversial this kind of work.
Yeah, absolutely, you know, historically in the past, for example, in twenty eighteen, when Google was starting to partner with the Pentagon in what was called Project Maven, it was hugely controversial. Employees protested the partnership ended up not working out at that time. However, now we're seeing I would say, less resistance from employees generally. Of course that could change, but so far we haven't seen much pushback.
And it's not just open Ai opening eyes.
Competitor Anthropic recently did a big partnership with Palanteer and Amazon, and Meta has also been doing some work in this area. So I think this is a trend we're continuing to.
Secrow and very briefly, Like Sam Altman was at the Deal Book event yesterday talking about his optimism that you know, Musk is in agoby to vindictive when close to Donald Trump. Do you think that this could be in any way an issue.
I think it's really too soon to say.
What is going to happen in terms of AI policy and exactly how or if Elon will be involved. We know, of course he's leading dog, but so far there's still a lot that's being decided about who and how AI.
Policy is going to shake out. So I would say it's too soon to say, sharenk if I brilliant to have you, thank you.
Meanwhile, President link Trump, as we're just talking about, has now nominated fintech billionaire and SpaceX astronaut Joed Eisigman to lead.
NASA for more but most Lauren Grush joins us.
And look, he has been busy going up and doing space walks with SpaceX and now he's going to be leaving his CEO role.
Yes, absolutely.
I mean, if there's one thing that most people can say about Jared is he's very passionate about space. He really kind of bursts onto the scene in twenty twenty one when he announced that he had booked the first all civilian astronaut crew trip to space on SpaceX, and ever since then he's only become more of more of.
A central figure at SpaceX.
So it's certainly a very interesting pick, and I think it's going to open up a lot of questions about, you know, his relationship with SpaceX. I mean, you have to understand NASA. NASA and SpaceX are very big partners, and SpaceX is maybe the biggest contractor that NASA has right now. So it's definitely a very unique pick for the agency that I don't think we've seen really before.
Yeah, so we're pricing Bill Nelson.
How are there ways in which they have protections in place to not have these blurred lines as to someone who ultimately doesn't work for SpaceX but has plowed an awful lot of his personal fortune into riots using SpaceX.
And I'm sure has a personal relationship across the board.
Absolutely, I do believe there are some areas where he might have to reaccuse himself. For instance, he has an investment in SpaceX where he holds shares, It's possible he might have to divest those If there are major decisions that are being made about future contracting, you know, it's possible he might have to recuse himself from making those decisions.
A lot of the times NASA administrators don't get into those nitty gritty details. But again it's it's a lot of open questions.
I think a lot of people will be asking because anytime NASA makes a decision on a major NASA contract, you know, those can get quite contentious.
We saw that when they put out bids for their human landing system.
SpaceX won that, but Blue Origin ended up suing NASA and the federal government over that decision.
So those things, those decisions can get quite contentious.
And I think his selection will only add fuel to those fires.
And there's pictures of Jaredisman doing that spacewalk quite a few months ago. Interesting that stallin Coles is a customer, all shift, full payments, so plenty of inte linking going on. We thank you bringing us the latest Bloomberg's Law and grush on the latest from Trump administration picks. That does it for this edition of Bloomberg Technology. You don't want to forget to check out the podcast.
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