Intelligence Leaks and Twitter's Subscription Fees

charge subscription fees. We'll break down the move as competitors look to grab the social giants market share. And we'll hear from the CEO of Amazon Web Services as the company joins the race for artificial intelligence dominance. All that so much more going up. Let's get to it with Shinati Bassa, who who's there in early breaking all this bank news for us, but told to us about the Silicon Valley bank repercussions and really how sticky some of

these deposits are likely to be. It's really interesting to see just the movement. JP Morgan posted a surprise increase in deposits after quarters of decreases now they say it's not necessarily a sticky phenomenon. They expect deposit outflows or deposit pressure really to continue, if you will, because interest rates are still going up. Money markets are still very

attractive here. But when you look at it, they really did end up being a big beneficiary of what happened in the regional banking system in the last couple of months, if you will. Now remember P ANDC also reported today too, And the reason that's important is because people were really worried about other mid size regional banks, and the deposit

number there was a little above what analysts expected. So as we think about the broader pressures after the wake of Silicon Valley Valley banks, real troubles that we've seen, our other banks still feeling any pressure, That's where I want to go your tweet, what is it? You said, Shinnali? What eight hundred Jamie? That's literally what happened after the class of Silicon Valley Bank. Isn't it to be fair?

I stole that from John Farrow, But but it was charming, right because seriously they did go to JP Morgan and next week, remember Goldman Sachs and Morgan Stanley are reporting and presumably they would also have been beneficiaries, particularly Morgan Stanley that also looks to bank a lot of these as Silicon Valley startup founders, if you will. Ed remember we talked earlier in the week with Nishi Somaia over at Goldman Sacks, which really targeted a lending opportunity as well.

JP Morgan said, net interest income is really going to expand very meaningfully. Of course, that is picking up some business that we're seeing from other firms getting out of the market, but also really interestingly here I find this to be a tech play, if you will. A lot of this net interest income is coming from credit cards.

So if you think about the payments businesses, the credit card businesses, everything that's online, those are the things that are really facilitating any of the love you're seeing in the banking system. And this is what some point to Shnati Bassak on who can do big banks and fintech and wrap it all into a kind of a focus

for us. Let's route it out with what's happening with First Republic, for example, at the moment, Shanani, because it's interesting actually under pressure, all people were worried about what's to come in terms about flows and deposits. Until that question is cleared up around First Republic and First Republic remember, as we've been talking about has a big California tie. They have really banks a lot of the wealthy in California.

Then there are a lot of questions about how far they've gone in places other banks might not have been able to, what is left behind as they're under pressure. Until they report. Until that's out of the way, it's hard to say that the system isn't all clear, but it is a promising sign that we're seeing the bank

earnings start off very cleanly today. But we do still have two weeks ahead of us here where we're going to get a lot of questions still about the client bases that we're talking about here and what kind of pressure that the bankings on the heels of those pins might feel. I used to be one eight hundred Greg Becker, one eight hundred Jamie Diamond. Right now is so interesting to see the net result of that SPB collapse Bloomberg Shnali Bassett, thank you so much. Let's go over to

DC in Washington. The White House is urging social media companies to prevent the circulation of information that could hurt national securities. It works to clean up that intelligence league. Joining us now from always Bloomberg's NAT Security editor Nick Wadham's Nick the b gub article lead says it all, how did a twenty one year old with basically just a driving license and eighteen months experience get access to

that data? We've had an arrest. What are the latest details. Well, he's been charged now with the unlawful retention and dissemination of classified information. I mean, the big question here is what the government can really do. And that warning from the White House, Hey, if you see classif information online, don't share it sort of gets to what a struggle

they're really going to have. I mean, the issue here is that he went on a private chat on discord and started spreading this stuff around to his friends, and then someone in one of those chats took it and amplified it more broadly on the wider net. And so far the administration is making clear that it has not shown it really knows how to clamp down on something like that, and it's going to have a really hard

time doing so. The responsibility Nick, that was cooled on for social media platforms themselves, coming from on the press officer over at the White House. Do you think that that's in any way or reality. Well, I mean, Discord obviously did cooperate with the administration on this, as have other companies in the past. So I think in large part these companies do not want to have top secret,

classified information distributed on their platforms. But you know, it gets to that broader question again, Okay, what can they do? This was a private chat, It was a relatively small group of people by all accounts. He was putting information on there as far back as last December and then switched over from just transcribing information to actually posting the documents. So what can they do? How closely do they need

to be watching these chats? And that's something companies are going to have to grapple with, especially with this new pressure from the administration. The FBI released an affidavit Friday, and I just want to point out that Discord, the platform, the social media company, was not named in the affidavit, but they did provide the FBI with the records requested because they were ordered to do so by the court. I just want to go back to the individual involved, Nick,

if we can, I mean, what happens here. They still trying to find out exactly the breadth of information that was put out there by him, What are kind of illegal procedures going forward. Well, I mean, if you look at the arrangement and the charging documents themselves, it appears to be fairly clear cut in terms of what he's accused of doing and the evidence they have against him. That all looks, you know, from a layman's perspective, pretty

daring strong. But the issue I think that's going to happen now is, Okay, how many documents actually were there? You know, there are several dozen that we know about I think about one hundred now, But there's also this whole other element where early on, as we now know, he was actually typing out information from previous documents and putting that out to his friends, and then decided that was too much of a hassle, so he was just going to photograph documents and start posting them because that

was easier and quicker to do. So the big question is we still don't know the full extent of what was actually leaked. The documents we know about so far are extremely damaging, but I think investigators really are going to be honing in on that question of whether that's it or whether there's much more damage out there that they don't yet know about. We thank you, we can calling you on these moments. Meanwhile, let's stick with where Nick is Washington. Just a little reminder for you, go

to life. Go if you're like enough to have a terminal. Bloomberg's valence is Tom Keene. He's currently on stage interviewing a whole raft of central bankers of economists. As you see Olivia Bronchard there at the moment. I'm Squito Governorth as well back of England Cia ten yo. So just stick with this and also worktability. I mean we ever sends a very sharp changes in your Twitter. All right,

coming up? Lauren Schipper hosted the Upload podcast. It's going to join us to discuss Twitter's move to allow users to start charging for content. We'll get more on the social media's landscape. Next. This is Bloomberg. Twitter is now allowing you users to charge for access to their own content. CEO Elon Musk tweeted the announcement, of course on the platform, and even said he'll offer amas for his subscribers. Joining

us for the latest details Bloomberg. Sarah Freyer, you and I discussed this just as the tweet came out, and we thought, oh, that's interesting. Essentially, for a twelve month period, they are offering interesting terms to content creators. Well, they're saying, you're going to get all the money that you make. The only cut that we'll have to take from it is the money we paid of the app store for the first twelve months. After that, who knows it could

become part of the Twitter's revenue proposition. But in twelve months, you can build a community. You could do a lot a lot of building of that business and then see what happens. I just wonder if if Twitter is a place where people feel like they can get that stability because there has been so much, so much tension, so much tumult between Twitter and its creators um since Must took over there, they're losing their their blue check marks.

That it's become more confusing how to figure out the algorithm. So there are a lot of factors consider if you're going to build that business. And Sarah, what's interesting is slowly but surely sub Stock and Twitter seem to be trying to move into one another, and that is that's what the sub Stack CEO said we should expect when

he was on your program recently. I mean, this is this is the thing is you know, when you're trying to build new revenue models, you're you're going to build in all directions, and advertising is not working for Twitter right now. They have to come up with something else. So they're they're going to throw a lot of spaghetti on the wall in the next few weeks, months, years. We saw subscriptions here, but they also said you're going to start to be able to buy and trade stocks

via Twitter. I mean, all sorts of ideas are going to be thrown at us. And in meanwhile, Twitter Blue their first idea in the sort of new money making category. It hasn't seemed to be doing so well. Only one percent of Twitter users actually I think less than one percent so far based on estimates, have signed out to pay eight dollars a month to Musk for that Satify breaking it down. We thank you so much of Bloomberg

and letstick on all of this. Laurence Snipp has with US vice president of corporate Development and Jelly Smackets, a company actually focused on amplifying content creators. Lauren, you also host a create an upload podcast or previously rank created partnerships over it on the Artists formerly known as Facebook. And I'm interested, And do you think this will work? Will content creators that you try and amplify want to

go via Twitter in this way? I mean, right now, no, I don't think it will work, mainly because I don't think this is a platform that creators can sort of trust, right, Like it was just you guys were just sort of talking about that, right. There's been so much tumult at Twitter in the past few months since Elan's taken over. If you look at the thread where Elon tweeted this, half of the comments on are talking about parts of

Twitter that is broke, that are broken. And So if I'm a creator thinking about where to kind of launch a business, which effectively this is, I would be very suspect about doing that on Twitter. I mean, I just feel like you can't trust this product. I mean they've lost most of their employees and talk about security, talk about you know, just a reliability of a product. I would be very I would be as a creator, would

be very reticent to do this on Twitter. Right now, I think this is a good opportunity to also talk about how the content creator ecosystem works, right that you need a following. And I guess a question I had is it does this move by Elon Musk bring content creators from other platforms like TikTok and YouTube where they already have an established following and may not have one on Twitter. I don't think this is compelling enough of

an offer to bring people over to Twitter. What I think this is more about are the content creators on Twitter that have amassed huge followings, of which there are many, many of whom have built businesses off of that, just putting in elsewhere, And if I'm there, I'm struggling of like, oh my gosh, I've got all these followers here and now I can capitalize on that here. But I don't trust this product. Do I think this is bringing creators over to Twitter? No? I think there's other options to

provide subscription Obviously, Patreon comes to mind. Even Meta has a subscription offering, So there's other places to build a subscription service. You know, Lauren with your jelly Smack corporate development hat on, create an upload podcast hat or even your former Facebook now meta hat. How do you quantify the Elon Musk effect because he has one. Oh my gosh, that's I don't know if we have enough time for that.

Here's what I'll say about this. You know, you can't deny you've got an innovator there, right, Like I think about payments just in itself. Right, You've got his PayPal background, right, So you've got this, and I think he has despite everything that's gone on, I think he's got this lure about him. People still, you know, sort of worship him in terms of what he's built. You can't you cannot deny him as an innovator. So there's gonna be those

folks that are going to follow him wherever he goes. Right. I think that there's that, and I think that that is sort of invaluable in a certain sense, and why Twitter still has legs and people are still hanging on. That's why we're talking about him right now, right, It's why we're hanging on to every word because we know there's genius there. It's just that he's never run a platform like this, and having been at a platform obviously similar.

You know, I was shocked how much Facebook can break when I was there, I was like, what do you mean, it doesn't work sometimes these platforms are so buggy and they break all the time, and he's gotten rid of all of the infrastructure there by which to support this basically, and so I feel like there's just some basic, fundamental things that he needs to do before he builds this. But I want in some ways, I want this to work because I think that he is such a genius

that he could bring to this product. It's just a matter of whether or not they can support it. So quantifiable, I mean, I think it's in some ways invaluable and undetermined. Caroline. One thing that really sit out to me, and that's bass. The other night is Elon Musk talking about how the ad slowdown was impacting their competitors, not just Twitter, and

he kind of really labored that point. And on this show, right Caroline, think substack, Yeah, we see people making moves And to that point, Lauren, we made the idea with Sarah that substacks going into notes, they're looking more like Twitter Twitters in some way sort of shadow banning people who put substack links in. And where are your people wanting to build community? Is it all about substack? Is

what do you need to be across all platforms. Well, I mean that's fundamentally what Jolly Smacks are offering is right, Like most creators at the end of the day are experts in one, maybe two platforms, but they recognize that there's a huge audience out there that may not be just sort of servicing. So there's we are interested. You know, we're really video focused, so we're really focused on more the creators that I sort of we've sort of worked

with or really focus on the video platforms. I understand that Twitter that supposedly, I mean he said, you could be doing our sorts of things, including video on this subscription, but it's really thinking about from Pinterest and Spotify. Those we're seeing a lot of interest in as they seem much more stable and the opportunity is really exciting on those kind of platforms, and we're single a lot of interest there. Friendly too, dare I say, la, thank you

nice people. You know, we thank you for being a nice person on our show. We appreciate it. Amazon Web Services is making good on its missions bring Januative AI to cloud customers. I spoke to CEO Adam Slipski about AI integration on AWS and Y. There's such an emphasis on the price performance of this tech before it's launched.

So we're confident that the Amazon Titan models that we announced today, which are Amazon's own branded foundation models, which of course will be available as part of Amazon Bedrock along with leading third party startups, that the Amazon Titan models will be really exciting and are going to power both Amazon internal use cases as well as being available to our external customers to build a generative AI solutions and applications on top of us. Adam, you've played your

hand in the field of generative AI. On the same day that Andy Jats, CEO of The Broader Company, has given his kind of outlook on the world, he talked about AWS facing short term headwinds. How are you managing those short term headwinds? What is the Adam Selipsky view of the world macro speaking right now? Well, I don't think it's any secret that there have been macroeconomic headwinds. Companies and all sorts of different industries have seen slowdowns

or as you put a headwinds of different varieties. You know, we're we're very confident in the kind of long term outlook for AWS. Demand for the cloud remains strong. Customers tell us that we remain as we always have been, the leading cloud with the broadest set of capabilities and the d set of features within each of our services, with the leading security, leading operational performance of any cloud

in the world. So we feel very confident that we're going to remain on a long term road to providing value, and in the short term, we're really focused on continuing to innovate in the areas that matter most to our customers, such as general AI and such as bringing choice and democrat democratization to that area, just like AWS it's always done for Compute has always done for it, and of course on helping our customers as they try and be cost efficient and they try and tighten their ballots. We

don't mean away from that. We lean into that and we say, let us work with you to help you lower your costs because we know you need this right now. Such great conversation and we thank you for that. And it's time now for talking tech, because let's go broad and let's look to Asia. Chinese President jijimpaing and reaffirming is cool for China to be more self relying across

the range of industries, including science and technology. During a trip to Southeast China with officials and called for quote further steps to enhance independent innovation. Also in China, Blue Focus. It's one of the country's best known media agencies and actually plans to replace third party copywriters graphic designers the

chat chpt style AI system. It's happening. People. Reports say that company has already reached out to local tech firms to explore licensing technology, and the Justice Department is saying that generative AI and other tech innovations may have been released years ago in the United States if it wasn't for Google's monopolized presence as a search engine. This comes ahead of an antitrust suit against Google schedule to go

to trial in September. I'll come back to Blue Beag Technology Caroline Hyde in New York alongside Ed Ludlover over there in San Francisco. Let's check out on the market, said, because we are seeing just the moon music, dialing back on tech but ramping up in terms of the banking sector. We're seeing now that's like one hundred off by eight tenths of a percent. This is more about the acro picture once again, some resiliently unfortunately in the pricing of

certain goods. The inflation not dialing back as quickly as we'd hope, the Federal Reserve likely to have to keep on looking at the US economy and flowing it down. That's what the retail data showed us today. That of course affects technology stocks. There's some people I've found a financials up because JP Morgan came out with its numbers and really benefited deposits coming in coming from the likes of Silicon Valley Bank. Ultimately these banks doing better than

had been feared. We see a lift and I think JP Morgan's up about seven percent two year yield rising. I mean that also helps banks, doesn't it. Borrowing costs on the rise. But this is a thirteen basis point move. We're then still really pricing in what the Federal Reserve is going to do. How much does it has to tackle inflation? Move it on because I thought it was inflationary hedge once upon a time, but ain't at the moment.

This is a risk, as said, But even as we see tech stops coming off the boil, we don't see that in the likes of eth We're still seeing it holding up to its gains of the day. We're still at the highest level since May twenty twenty two. All of this coming after that all important upgrade earlier this weekend.

All right, Karl, let's bring in tag Incline co founder in chief is as officer of Edge and Note, a software development company behind the graph and indexing and query protocol, organizing the world's open blockchain data and making open data a public good. You are an instrumental name in blockchain industry, regarded in terms of your understanding the underlying technology. Carriages

showed us one digital asset. What I'd like to ask you is to explain to us the momentum right now that is in bitcoin ether is that coming from a renewed enthusiasm that the underlying blockchain technology is working, is progressing, is moving forward. Absolutely, And with the Shanghai update that we just saw, this is a massive milestone and that's been in the works for seven years ad Proline, and it's really is kind of a paradigm shift that we're seeing.

We're changing the way we coordinate and we incentivize that coordination online and with this upgrade, it's just a massive proof to the industry on what is past and it's really exciting to see. But to your point, there are so many different projects in the ecosystem. I think bitcoins has very much proven itself in terms of a new paradigm when it comes to monetary policy, a new system, and Ethereum and the graph are very much in the

Web three decentralized Internet category. Before we dive into the graph your first protocol, talk to us a little bit about who's being drawn back in to the eight in particular. Is it retail that's being tempted as an institutional interest, is it just people are already committed, but you know, helping amid pretty low liquidity at the moment. Yeah, So many of us building in the industry, we kind of look away from the market and we just focus on building.

And I think that this milestone accomplished with the Shanghai upgrade and us moving to proof upstake with Ethereum is a great example of that. So the builders have kept building. Development is at an all time high. Now you're seeing head of the market. There was a lot of fud around because there was fifteen percent of eighth that was state in the beacon chain that was not liquid. You

could not withdraw that. And now with this update, there was a lot of fud around, a lot of people would be dumping those coins, and actually block works were ported today that deposits are actually higher than withdraws, with eighteen thousand, five hundred eight being deposited more than withdraws.

So that's an exciting moment. So I think, you know, when we saw eight slash BTC down twenty percent ahead of this upgrade, so it's kind of the industry proving proving a lot of people wrong take and you sort of said you look away from prices, and I'm afraid to say you probably have to look away from your own token price to a certain degree GLT, because it is swell off its highs and more than two dollars

all the way back in February twenty twenty one. I'm sure many would say that was an extraordinary period in time. But how much does it matter that olt coins perhaps aren't participating in some of the rally that we've seen of late in eighth in bitcoin? And what do you do? Does it matter about the price of one's token when you're trying to build an ecosystem. No, I think that

what's you know, GRT is a work utility token. So the concept is that you actually buy it only to use it in the network, and there's different roles and again this comes back to the incentive around coordination and coordinating online. So there are many different participants. You know, hundreds of thousands of people across the ecosystem that are participating in these protocols, and they're being compensated commensurate to

the value that they're putting in. And that's one of the really powerful pieces beyond just kind of looking at the market or the prices. Of course, these sorts of protocols and you talk about the thousands using it and the integration within depths such as unite walk and a lot of this. The protocols is about access, isn't it at the moment democratization. Yeah, so you've basically taken through

the graph. I want you to explain to us what that is that you want people to be able to publish open APIs contribute to the next work for it to be I guess, an open access platform exactly. So the graph is a marketplace where public data. So you think in Web two you have one Google. In the graph network, you have over four hundred quote unquote Googles there's four hundred different companies all around the world operating

independently to serve queries. And when I say query, you can think of search in the graph network for these applications. And there's over seven hundred applications on the graph network today and you pay for the usage of these applications in GRT, and that is the point of GRT to be used across these applications. And it's exciting to see how many people are using these applications and it's at

all time high taken. I think one of the reasons people are really excited about this is it's kind of at the intersection of AI and crypto U and AI startup an AI entrepreneur in that respect, I wouldn't say that the graph is a quote unquote AI project. It's very much about open data. But what's exciting around AI and the intersection with the graph and Web three is that you could imagine having like a chat GPT on

top of the graph with verifiable data and information. And that's really an exciting opportunity because garbage in garbage out even with AI, and now we can have really great arguments around the garbage using AI technology. So if we can verify that information, that's when it becomes really exciting. And so that's something that the Semiotic team, one of the core developers within the graph ecosystem, is actually looking

at and working on. But within the graph the indexers do use many of them use machine learning today around pricing queries. Caroline, I think on this program, you and I, because we're in the markets, we're tracking the value of any given time of a DUS asset, right. But actually, what we've learned this week watch parties for Etherium is that actually people are really closely following the technology, the developments in the underlying technology, and that convers stations startings

creep back in. That's what this show is all about as well, underlying technology and taken to that point, how much does a regulatory environment impede some of the conversation about underlying technology, particularly here in the US. Yeah, it's definitely interesting to see the way the US has been approaching the regulatory market. I think that they are there's a chance that they are stifling innovation and pushing that overseas.

But I think one of the positives with some of the regulatory crackdown is that it's pushing people towards transparent systems, towards further decentralization, towards further censorship resistance, because this industry, it's all about giving power and control back to individuals as opposed to kind of locking it up in a centralized company. And that's really powerful and I think the

faster we can get there, the better. And so the regulatory environment is actually pushing the industry in that direction, which is a positive. Taking great to have some time with you, Thank you, thank you so much for having taken find co founder and chief business officer over the edge and node Ian well yep, coming up observa observability platform. Sorry about that one. Honeycomb raises fifty million dollars even as the VC landscape still rolling a little bit from

that SPB collapse and a broader downturn. More in that next with CEO Christine Yen, ort to take a really quick look at semi conductors. The socks off five pounds, seven tenths of one percent. It is heading for a second consecutive weekly decline. Mixed stories here right, there's optimism in the commoditized memory space that we're addressing the glost. But now with the run up Nvidia an aipowered rallies.

For example, We're starting to question valuations. We're pulling back a little bit, down seven tenths to one percent on the Philadelphia Semiconductor Index. This is Bloomberg all right. Time for the vcuund up crypto startup cheer Network, which was valued at about five hundred million dollars in twenty twenty one, says it has moved a step closer to a USIPO and confidentially submitted a draft registration statement to the SEC. The IPO size and price range has not been determined yet.

And Astranis, the startup that builds geostationary satellites, has just raised two hundred million dollars in a financing deal, valuing the company at one point six billion dollars. That in a round led by the growth fund of Andrews and Horowitz. That's all according to a Bloomberg source. Meanwhile, the company is preparing for its first ever launch this Saturday. And Carrow, I've got a Friday treat for you. A chart, brand new data set. Okay, this is the white line. The

Refinitive VC Index. Think of it as a proxy index for VC companies investing in private startups, the valuation of private startups, and this is some research that came out from Bloomberg Intelligence overnight. Basically, when you look at the lows of twenty eighteen and twenty twenty on the Nasdaq one hundred, the public markets for the tech sector, we

see that VC index outperform. But something has changed year to date where the NAZAC one hundred is up pretty significantly sixteen seventeen percent, and that VC Refinitive Index is trailing behind. I think that's really interesting that we've broken away from that trend at a time where we have kind of questioned financial conditions for private companies, valuations coming down, the prospect of doing a down round. But it's a

brand new index. I love this chart. You can check it out g hashtag BTV on the terminal and always on bloom the Technology. Yeah. Well, let's continue with that sort of juxtaposition between public and private and we can dig a little bit deeper now and into the venture

capital era. You say is lagging behind tech, but some people and then you just run through a few are still managing to get their funding in in spite of this economic termol For today's VC spotlight that's bringing in Honeycomb CEO Christine Yen, who's on to talk about a series dfunding round that you did fifty million dollars in the bank, and what exactly how hard was the environment you brought on investors that you hadn't passed insight for example,

were they willing to be writing checks for companies such as yours in this environment? Short enter, Yes, they're absolutely willing to. I recognize tricky environment right now, not one where i'd recommend folks go, you know, running out there to try to raise around. But the fact of the matter is we were growing company in a huge space. Last year really was the year where it was clears of ability was hitting the mainstream and we were the

leaders in this space. And so for us, the round honestly, it's an opportunistic round and came together quite quickly and religious makes me grateful for the continued support from our existing investors. Scale bench is another one headline as well, So I love that you sort of tell us that this was opportunistic, opportunistic to what you say is the best observability tooling for your software engineering teams. So what exactly do you do? How are you helping the customers

that were currently shining light on Slack and head of Fresh. Yeah. In the simplest terms, we help engineering teams understand why their software is not behaving the way that they expect. You flash some great logos up there, thank you. Vanguard, for example, used us to help figure out why the one of the one of their pages on their personal Investors' website was not loading. Slack uses us to figure out why some of their their fixes don't get released as

quickly as they expect. In software, there's always a slight difference between the way that you code, you think that code will behave when you have it in your head, versus what it's like in front of real users. And we help all these engineering teams shorten that shorten that distance and make sure that what they think they're putting out there is what their users are experiencing. Hey, Christine

and our audience on bloom Bag Technology. There are so many founders out there with companies much smaller than yours, and they'll see that you were able to raise this money. You've just explained the problem that you're working on in the addressable market. How do you use the funds? Tell us about the size of your business, how are you going to manage your longevity and runway? We are about

size of the business, solid growth stage. In terms of headcount, we have maybe one hundred and sixty one hundred and seventy folks. You know, looking forward, we're really excited to use some of this capital to expand Geo's investment ecosystem and really just be able to continue committing to staying on the bleeding edge of what's possible in the space by investing in new exciting tech frontiers. You know. Really, I think we as a company tend to be fairly

pragmatic in our spend. That is really what helped us weather the last couple of years, not just chasing high valuations and running the risk of a down round. This is an upround, which we're all very happy about it. And I think our focus has always been build a great product, build a strong business, build a company our

people are proud to have been a part of. And it is a little too glib to say that the rest will follow, but if you keep your focus on those things that the market is just another tool to continue achieving those goals. Christine, you formerly were a senior software engineer at Facebook now known as a lecture of course, and when I was at startup Grind earlier this week, we were discussing layoffs and the opportunity that layoffs can

can offer. Are you going out there to kind of hire some talent from your former employer that may now be on the market given that money you raised. Yes, some, but as with everyone, we are doing it pragmatically, thoughtfully with an eye to managing cost and efficiency. But we are, we are hiring. We're continuing to do really exciting work on the bleeding edge of observability and these technology and we make a real impact in the lives of our

customers and their software engineering practices. So you know, every door open. When the door closes, another door opens, and we're really excited to continue building the best team that we can to build the breast product and service that we can. Caroline is so interesting to get the real term perspectives of a founder CEO. The other thing that you know, I was discussing as startup Grind is the idea that not everyone is in San Francisco or the

Bay Area. People were there from all around the world. Yeah, and nook. Christina satin Reno right now, how are you building a team? Are you building it in person? Are you're building it in Reno, You're building it globally? How do you see the new world in which we live in and ultimately waiting up at the best engineering talent. We are largely concentrated in the US and Canada. We've

got some folks in the UK. When we were actually we actually had aspirations to be a distributed company even before COVID and the you know, shifting to remote work was just hitting an accelerator on plans that we already had in place. I actually looked recently and I'm surprised to find that two thirds of our company are located out of traditional tech hubs, sorry, outside of traditional tech hubs. And it means that when we are able to come together,

it's folks from Utah and Tennessee and Ohio. And it's wonderful to be able to tap into a talent pool. That is, it doesn't have to be concentrated in a particular GEO. Time zones are a little harder. We're working around that, but I think remote work is certainly what we're committing on committing to Christine, you founded this business because your time at face that you recognize the IT

landscape was changing. I want to end on asking you what's changing in technology right now that's a drive for your company? Is it AI for example, and all the data conversation about the inputs I think in terms of driving the company. The way that we build software has changed dramatically in the last five or ten years. With trends like Cabernetti's microservices server lest technologies. You have this explosion of complexity in any sort of architecture diagram on

how logic flows through a system. With that increase in complexity comes with a different set of expectations for any tools like ours that are meant to make sense of that for a selfware engineering team. So that trend, those trends continuing to grow, crest and make selfware engineering teams life's difficult. AI is definitely an interesting area we've got

our ion. I think that there are as with any technology it could be there are cases where it can be misapplied, and there are cases where it can be perfectly applied. And you know, in our world, if we make a wrong if our AI attempts make a wrong choice, it either risks not waking in an engineer up when the software is burning down in the middle of the night. Um or it risks waking engineers up in the middle of the night when they don't need to be in

burning them out. So we are trying to be very thoughtful about where we where we ask software to make decisions and instead are more interested in how can we help humans be better versions of themselves? Y mantra. One of our one of our folks that I'm borrowing is we want to build mecca suits, not robots, and I that augmented. I'm calling the conversation. Thank you, hunting Kime Ceo, Christine Enna. It is going viral. The Coachella Festival is upon us, Bad Bunny and Black Pink. Frank Ocean from

hersonal Favorite headlining the festival. There's actually at a polo club in California, But it's not all about the music in my life, right, Yeah, you don't even need to go. If you're a fortnight player, you can experience it virtually this year. Yeah, what about YouTube? If you've seen this, they're dubbing it couchella. You're going to do that couchella that does it. From this edition of Bloomberg Technology from New York. From San Francisco. This is Bloomberg.