Nvidia Surges and Coinbase Launches Blockchain

discuss with Chris Lahane of Horn Ventures. Class Gorman Sacks offering its wealthiest clients access to a fundraising round for Stripe. That's as the payment's giant seeks to raise four billion dollars from a wide range of investors. The best performer in the SMP five hundred and as that one hundred in video shares surging essentially because they give a strong

outlook for revenue. That kind of indicated to investors that they're foura into artificial intelligence is helping boost them at a time where PC demand is slowing and data center demand slowing as well. Shares up forwarding percent, the biggest jump since November. At one point up by even more than that in the biggest jump since March of twenty twenty, and I want to stick with this story and get

the investor perspective. Joining us now for more over is Jonathan Curtis, Franklin Equity Group, Director of Portfolio Management, Franklin Equity Group. Nearly one hundred and twenty billion dollars of assets under management of Jonathan. You hold in video stock in your funds? Is this chart on my screen? Is

this equity response justified? Is the height justified around this name? Well, certainly Nvidios had a strong movie or to date here, but certainly we think that the opportunity for artificial intelligence is really just beginning in Nvidia said it's in a very very strong position to capitalize on some of the recent break views we've had with computers being able to actually understand and generate both speech and an image content

now an Nvidia's right in the center of that. We think that today's move was certainly exciting, but when you look over the long term, Nvidia offers really solid return potential floor investors. Jonathan talk us through how they are so best placed to leverage artificial intelligence. Sure, so, Nvidia makes graphics processors which have at their core the ability to do vector math, which is right at the center of how a lot of these artificial intelligence models operate.

The chat GPT three and a half has more than one hundred and seventy billion parameters in that model, and NVIDIAs processors are great at building up the models that understand language and then ultimately allow it to be reproduced. Similar technologies or techniques are used in generating images, and NVIDIAs in the pole position for that. Not only were the semiconductors they build, but then the software that they build that really helps to augment and accelerate the usage

of their processors. But Invidios the only player in this category, there are a lot of other players in this category that we also own and are also very exciting in that case, Jonathan, is in Vidia the best position name that you're tracking or is there another in particular that you're excited about that you think actually can grow a business around the momentum and AI? Yeah, well so, certainly

in Vidia is the one that is best position. About a third of their revenue, it's gonna be fifty percent of their revenue, Almost sixty percent of their revenue comes out of the data center and a large portion of that comes out of cloud service providers, and a lot of the growth that we think is going to come in the years ahead is going to come on AI in the building of these large language models. That said, there are other players in the semiconductor ecosystem that are

also well positioned. AMD with its zilings acquisition a latt of semiconductor certainly a TSMC where a lot of these advantage chips are manufactured. Then in electronic design automation the building of new chips, companies like Synopsis and Cadence are very well positioned. The cloud providers are also extremely well positioned because that's where a lot of the building and the running of these models is going to occur. So

there's a many ways to play this. In video is probably the best position in the semi space, though, Jonathan across Franklin's different funds and portfolios, I think you hold zero point five percent of Nvidia, so a serious stakeholder, and there's always hype around this company. I remember they were going to be big in crypto because of all the compute that was needed for mining. They've going to

be big in previous cycles and trends. Why are you so convinced that this time around, with what we're seeing in AI, it is in Nvidia that's right to take on what's available in the market. Well, I think investors were right to bed own and Video over a long term. They've done very very well. With the rise of gaming, they've done very very well, and the rise of the

cloud and now AI is a big opportunity. I think they're very well positioned because of the combination of their capabilities in semiconductors and a software they wrap around it. But there are many other companies that are going to do well here. But I think the bigger idea is this, if you, as a knowledge worker had the ability to have a partner sitting alongside of you, helping you in your day to day work and being creative, of course

you would take that. And that is precisely what companies like Nvidia and these large language models and generative AI businesses are going to be enabling. They're going to allow

knowledge workers to be dramatically more productive. We've just met last week with Sachi Adella Microsoft and he indicated that the product that he was most proud of was the GitHub Copilot offering that allows software developers to generate nearly half of the code they are writing now with a copilot model, we think that same type of power is coming to the general knowledge worker that has to work across hundreds of emails every day, many many documents every day,

ultimately empowering knowledge workers to be dramatically more productive. I think enterprises are going to pay for that, and if they don't, they're going to fall behind. And then all leads back to the infrastructure vendors like an video there are going to enable that they're painting a vision and total addressable market that's enormous, I'm sure, Jonathan Franklin Equity Groups. So great to have some time with you really to

discuss all of this. And we do have some breaking news at the moment regarding one is once again some news around the DOJ preparing a suit to block Adobe's twenty billion dollar deal for Figma, now notable acquisition one that many an investor was questioning the absolute valuation that this company was parting with four Figma. We understand that the antitrust lawsuit could be filed as soon as next month, and we know it's one of the biggest takeovers of

a software startup out there. Really, this comes at a time that we see more and more discussion of M and A within technology. Of course, the focus on Microsoft's deal of acquisition of Activision Blizzard at sixty nine billion dollar deal really the US administration ramping up oversight. Yeah, and every time we see a big piece of M and A and it does happen, this is the first

question we ask. We're surprised to see it. In Adobe's case, there's questions about why they would do this deal based on their business fundamentals, but you know clearly the regulators coming in and we thought that might happen. There's a lot of exciting things going on, but there's a lot of reason for us to be concerned. People want regulation for AI. They want to feel safe. We think about artificial intelligence as this kind of separate consciousness that is

going to emerge as this thing of science fiction. The fact that they have this machine speaking with the first person is problematic because that really encourages people to see it as an entity, as a mind, when it's not like any technology. It definitely has its limitation. So we actually liked anything that you implement, we know its limitations. We've seen the move fast and break things attitude before. We have to get governments to think about how best

to regulate this new, very fast emerging industry. I think that that chatbuts are not what we need for search. It could be helpful, it could help human flourishing. These were just some of our recent guests expressing their concerns around the rapid rise of generative AI, from ethical concerns to regulatory ones. There's another one cybersecurity concerns. And in fact, of course JP Morgan just restricted its staff use of chat chypt. They say it's part of normal controls around

third party software. So just what are the vulnerabilities that perhaps artificial intelligence injects? Got the perfect guest, francois Local Donu, his president, CEO and member of the board of directors over at cybersecurity company F five, with a pretty fantastic backdrop as well. Francois, welcome to the show. And just when it comes to your expertise of cybersecurity, does artificial intelligence, particularly generative AI, what sort of risks does it induce? Well,

thank you for having me. There are a number of no risks that happened with generative AIM. But if we step back a little bit, what we've seen over the last you know, several years, is the number of cyber attacks on companies and applications have increased dramatically, to the point where cyber attacks are costing you know, roughly six

trillion dollars a year around the globe. Part of the reason for that is that as we move from the early stages of web experience to more digital, advanced digital, and dynamic experiences that we're all enjoying today, security in all of that movement was an afterthought, and so the attack surface for attackers increased and they were able to

increasingly attack applications and monetize those attacks. Well, now we are at another inflection point where you know, generative AI is going to be an accelerator for humans, both for bad humans and for good humans, and we really have to make sure that security is not an afterthought and that organizations prepare themselves upfront for the new risks that

come with that acceleration. Those new risks include, of course, you know, attackers being able to impersonate chat bots to take your personal information, or you know, being able to write scripts much faster that attack vulnerabilities in existing applications, and today most organizations are not prepared for that. Okay, so let's talk about hardness. We can all update our the way in which we train ourselves to avoid phishing emails.

We can all understand them, phaps, the spelling mistakes aren't going to be there anymore. But front, well, what are you now training companies to look out for? We're training so first of all, we're asking companies to take the threats seriously. What I think we've seen in the past is that oftentimes which we underestimate the sophistication of attackers. And because of that, you know, we use half hazard tools or try to just put a team of engineers in a room to try and deal with the attackers.

But they are now organized, they have access to a lot of tools, and this generality I is doing to make very sophisticate and fine tuned attacks available to frankly the least sophisticated attackers. So we're asking companies to get prepared to enhance their monitoring of their applications and the scanning of their codes and vulnerabilities. We're asking companies to

train their users constantly. You just mentioned phishing emails. Phishing emails are getting are going to get way more sophisticated and harder to detect, and it requires training of users on a very regular basis. Frans Far, a month ago when you reported earnings, he talked about your customers slowing down in terms of renewals. There was a little bit worry about the outlook. You think about the hype cycle

around AI. Has your situation changed in the last four weeks in other words, are your customers actually becoming more alive to these AI related risks and therefore engaging with you about doing more work with your platforms in the area of security. And we're we're seeing our customers are engaging with us on that. Just to give you a

sense and around it. You know, today we protect over two billion fraudulent logins into applications every single day, and we protect over four and a half billion transactions web transactions every single day with our large enterprise customers. And the way we do that is by leveraging AI to stop sophisticated and automated attacks. And we're seeing our customers, of course have a strong interest in these solutions. And over the last four weeks we have continued to see

that happened. Friends, how we just have thirty seconds, but what is your technological assessment of what the likes of open ai are doing. Do you see them as a long term threat to your business? No, Actually, I think open ai is going to be enabler for my business and the businesses because there's a lot of fantastic things that it can do and allow us to move our

people to other tasks that perhaps are repetitive today. So I see it pm mearly as an enabler of our business, but I also see it as a threat to all companies around the world around securing their digital experiences, and that's why we're going to continue to invest in AI to help our customers. Francois local Do New five President

and CEO. Thank you very much, Caroline. Great conversation. I mean, actually ed if you take a look a little bit more at Generative AI over in China, the rally in Chinese AI stocks, they're actually kind of cooling off of late. That's after some media started reporting that local apps and local websites have been ordered to terminate services that allow you so chat GBT now. Open ais chatbot isn't officially available in China, but has been accessible via virtual private networks.

Coming up. Goalman it's offering clients a special way to invest in Unicorn Stripe or bringing the details. Next, this is Blomberg. Oh, everyone was reading about it today. Goldman Sachs offering its wealthiest customers access to a fundraising round for the payment's Giant Stripe and the bank will set up a special purpose vehicle for private wealth clients to invest in the company as it seeks to raise four

billion dollars for more. Let's bringing Blomberg straight out, Nadarajan, and you're one of the key components of breaking this story. Remind us why they need the money. It's kind of rather arduous around tax. Yeah, I mean, there are a lot of longstanding employees at the film. They want to cash out their restricted stock units, and part of that move will involve a looming tax bill, and that is, in effect one of the reasons why they are raising

this much. They are trying to raise about four billion dollars, which is a pretty high sum. But again, we're talking about a company that went from a valuation one hundred million just to decade ago to almost one hundred billion dollars in twenty twenty one. It has come down significantly. We're talking about around where they could be valued at

fifty five billion dollars. But if you think about that, I think about the fact that we're talking about a fintech firm that is in the position to report positive

free cash flow. That makes it an exciting name. And when the valuation has come down this much, you can be guaranteed the lot of wealthy clients, a lot of big institutional investors would want to poke around and see if this is the right time to jump in, particularly as everyone's still talking about certain list of names that could co public as and when the markets reopen, valuations become boy in a little bit more. Just just talk to us a little bit about how it could be structured.

What It's not just Goldman in on the deal, right, No, So Goldman and JP Morgan are the two banks of being mandated. Were trying to raise this money, and they're going to a wide swath of investors that includes you know, big names and finance and the tech world VC firms. There is a quite a big spectrum that they've gone

now too. But equally important and what we found interesting was Goldman Sacks, for instance, opening it up to their high net worth clients Previously The biggest draw if you're a client in one of these banks was we can bring you in closer to the IPO. Now with private companies wanting to say private for longer, this is a way to augment your offerings. Goldman can go out there and say, let's create a special vehicle where all of you can pull in your cash and we will write

one big check and hand it over to Stripe. Why would you not want to take that opportunity? Remind us when this has been done before, because it's sort of got echoes of what happened with the right. The Uber is one example that comes to mind that was a big deal. It was in twenty fifteen Goldman Sacks to the one point six one point seven billion dollars convertible note deal. At that time, that was driven by their

high networth clients. But equally important, even if you look at recent examples, when a big venture capital firm like Tiger Global wants to raise a new fund, banks see an opportunity to create vehicles and go to their rich clients, you know, people who are worth more than twenty five million dollars perhaps and telling them that this is a way for you to get in on a big name, which in the bus was only available to institutional investors.

Interesting the way in which people still want diversification. Street up, great reporting me. Thank you Sharjan there, and you got some time for talking to tech. Yeah, thank you time now indeed for talking tech. Let's go over to Europe, where the European Commission suspended staff from using TikTok over security concerns related to the social media apps data collection practices.

Staff were ordered to delete the app from mobile phones and corporate devices, which includes personal devices that use Commission apps. That's according to a spokesperson. The move comes among growing scrucity both here in the US but also in Europe over the apps potential national security risks. In China, Ant Group's profit fell eighty three percent after China's regulatory crackdown

and a drop in valuation for overseas equity investments. Still A contributed a billion one or one hundred and forty five million dollars to its pair in Ali Barber, whose own profit jumped sixty nine percent after the e commerce giant reigned in its spending and narrowed losses abroad to make up for, of course, anemic growth because of COVID nineteen and benefiting also from reduced spending is Grab, which brought its profitability target forward after posting a narrower quarterly loss.

The food delivery provider among money losing Southeast Asian internet giants to have shifted strategies to focus on achieving profitability instead of spending on growth. Caroline great global round up there, and now let's get you back to the US. Let's get you to a stop to watch after hours because it's Block of course, the artists formerly known as Square, they've currently been for some fluctuation, but we're now decidedly higher, up six and a half percent. After hours look grows.

Payment volumes did climb fifteen percent year on year. It was slightly blow expectations, but net revenue looks solid up fourteen percent, and particularly are seeing sort of record setting revenue for the fourth quarter and the full year when it comes to subscriptions and services. They're also posting towards twenty twenty three guidance that were slightly ahead of expectations, so they're in the payment side of things ed, it looks as though we got a bit of a solid beat.

It was interesting also the bitcoin side of the equation also looking relatively solid. It's interesting the pledge from block is efficiency. Right in other ways, they're reigning and spending, and after what we saw from a firm PayPal, other thin tech players, that's kind of been the theme of this earning season. As volumes drop, then you need to tighten the belt a little. I think that's the play. Yeah, it was notable that they're really trying to get costs

under control. We note how wasn't that much an illustrative of how they're going to be doing that, but people sort of noted that the number was below where they had thought. And yeah, as you say, tightening your belt particularly, keep on selling out there and continuing to try and find some expansion bitcoin revenue. As I said, we're down six and a half percent year on year, but overall it was ahead of expectations. Welcome back to blobog Technology. I can and heard in New York and Almed Ludlow

in San Francisco. We're going to get back to that breaking Adobe news. Caroline shares down around four and a half percent in after hours after Bloomberg broke the story that the DOJ is preparing a suit to block Adobe's twenty billion dollar deal to buy Figma that according to sources, and one source saying carrow could come as soon as next month. I mean, really, Adobe such a dominant force

in terms of software, Photoshoppy, Destrator, you know it. But when they announced that deal to acquire Figment, many you know, were kind of amazed by the price point that they were willing to spend really where they thought this would

be a creative. They're trying to introduce less expensive products at the moment, but notably, just time and time again, this is an administration that is willing to go there to tackle M and A, to worry about competition and in this space, and really does feel as though, well the Bloomberg reporting getting ahead of that antitrust news and the filing. Of course, I think it's all because Adobe was actually in front and a meeting with ADJ which is often the case before we get this in announcement,

consistent with what we've seen right from the DJA. Our Bloomberg intelligence analysts do point out though that in this case it probably came sooner than expected, although it was kind of expected based on the actions DJ's taken in M and A. So far, we'll pivot Caroline, but we'll stick across the story as more headlines break. Coin Base, the largest US crypto exchange, is now launching a blockchain, expanding its reach deeper into the worlds of DeFi and NFTs.

Let's talk about this all with who else Bloomberg Scenali Basset out in New York, Shenali blockchain. Why this is very interesting. Remember, this is a centralized exchange if you will, looking at decentralization. When we spoke to a coin based executive, our colleague Moyo Shan reports that this is really a

bet on the community. This is a layer two network here where decentralized apps can be built and it will be a home for the chain products that will be built in conjunction with this network that is being shepherded by coin Base. Now let's use some of Brian Armstrong's all words, because he said this is to improve the scaleability and usability of crypto, plus he wanted to get in on the builder energy ed. That is what he said.

I also want to point out here that if you look at the initial tweets from build on base here, which is kind of the Twitter handle of base, which is project is known as Hello world is how it starts, which of course is a very intimate term and for the developer community here. So let's see how much this starts to take off. I think it's a very interesting concept, of course, to see in exchange like this get closer

to the decentralized world. The other headline is what coin base does not plan to do, which is to not issue a native token. Another point of discussion, Shali, stay with us, Caroline. We're tracking a lot of stories today, we are, and it all debtails nicely into a conversation around the future regulation around crypto, the future of innovation

and around crypto. And well, we've got one person who's kind of at the heart of that conversation, Chris Lahane's chief strategy officer, han Vinchas, of course, still with us a Shinali bassecond, Chris, I'm going to Austin only to take it away with the first sort of questions because we want to dig in a little bit more to

coin based us. Yeah, Chris, I'm really curious about your thoughts here about coin bass efforts to get into the decentralized world when they're facing so many questions really about the centralized world when it comes to US regulators, what is and what ISN'TO security? What kind of questions does this open up now that they're embracing decentralization so much as well? Yeah, well, first, thanks for having me. I

think really two points on the coin based announcement. The first is, I do think it reflects what's really going on in the crypto space right now, which is enormous progress in development what you call the infrastructure level where those developers are working at. And then more broadly, when you ask about the policy question, I think there's a

really interesting I called tale of two companies. Right you had an FTX company that was based offshore, in my view, really more of a centralized financed financial entity that committed, at least based on what we've seen them been reported, all kinds of fraud, but the type of fraud that you've historically seen in centralized finance over human history. And

then you have a company like coin base. Brian Armstrong, who you referenced earlier, made a really interesting decision seven eight nine years ago to base his company here in the United States, to push the frontiers of innovation, to create more economic freedom, more economic opportunity, but to do it within an existing legal system, and particularly a set of laws that were actually created before computers even existed.

So I think coin Base is actually a really interesting example of how you can actually push innovation in this space while operating within the paradigm there a stale, very much old school Chris. Of course, the company you work at now is one of the hottest venture launches in

the crypto space recently. When you're thinking about centralization versus decentralization, within the parameters of the existing laws that exist around the crypto community, what are you more comfortable when it comes to putting money to work with Well, first of all, you know, we raise one point five billion almost a year ago to the date, and for us, we're really focused on investments that will play out over multiple years. This goes back to something I was just touching on.

We see enormous opportunity what I would call it infrastructure area, where you're getting technology that deals with scaling, deals with interoperability, basically in layman's terms or lay person's terms, the type of technology that you're ultimately going to need for this to be consumer facing, in for everyday consumers to be able to use. Now to this specific question, about the decentralization versus the centralization. I mean, by definition, within crypto,

it is a decentralized space. That's ultimately how you democratize aspects of capitalism, particularly online. Within that, there can be a spectrum of issues and ideas. But we spend a lot of time with with our portfolio companies, and even the potential projects that we may or ultimately may not invest in is a is the what's the quality of the team, what's the quality of the technology? Do they understand that there's going to be a complex regulatory map

out there. They don't necessarily have to have all the answers from day one, but they have to reflect an understanding that they're going to need to navigate this and navigate it in a responsible way. So that's amongst the things that we think about when we pursue our investments.

I can I have to tell you, like, we're incredibly excited about the types of founders we're seeing, particularly in those early stages where they're really beginning to think about, Okay, here's where the world is, Here's some of the regulatory stuff we need to navigate. But we have incredibly powerful ideas about how we can scale and make this technology really consumer facing. Chris, You're so powerful with hard ventures because of the expertise you can lend the portfolio companies,

some of them that we're just seeing there. Your passion around Web three I've had firsthand from you, but I mean before we're helping advise companies such as Airbnb as they were scaling. You're someone who knows Washington the way it works so intimately from your background, what do you make on the way in which the SEC is by some terms of phrase our guests have said, look basically regulating by enforcement rather than setting rules of the road. Yeah,

I've called it an enforcement only approach. I mean, if you take a step back a year ago, almost to the day, I maybe off for a week or two, the Biden and White House put out an executive order. It was sort of a high water mark up to this point in time in Web three crypto regulations because it really expressed a desire and interest to foster and

facilitate responsible innovation. You fast forward to where we are today and there really has not been any coherent strategy coming at the federal level in terms of actually, how do you support and advance that type of a holistic approach, and what you've basically defaulted to is policy through enforcement.

It's a little bit like if we had just invented cars and there were roads out there, and you basically had to figure out the speed limit based on who was arresting you at what speed, and then how the courts ultimately would interpret that. That's no way to create a coherent policy. I'm old enough to have gone back to the nineties. I was working in the Clinton administration.

We passed the nineteen ninety Telco Act, worked with a divided Congress Democrats and Republicans, that put the US on the path to being the digital center of the world. That translated into enormous economic power, enormous national security power. At one point in time, I think the five largest companies by market cap in the world were somewhere between San Francisco and Seattle, right, and then you look at

what's going on today. But the history of the US has always been a country since its founding that embraces innovation, with government, public and private sector working together. Interestingly, with this enforcement only approach, it is actually seeding its leadership role. I mean, as we speak in your native UK, we have activity, right now to potentially pass legislation by the end of this year, which could be amongst the most farthest reaching in terms of defining a regulatory framework for

crypto to make the UK a crypto hub. Chris Will companies leave. I think that I look, I literally just had a meeting a couple days ago. These weren't Han venture companies, these were some others and they had reached out to actually really try to understand where could we potentially be looking at the world, And each and every one of them was looking at places like the UK,

even looking at Europe. And you know, as someone that get who came up in the US, the idea that Europe is actually ahead of the US and thinking about regulatory frameworks is just something that I had never really seen before. And so I do think you're going to get to a place where companies, projects, protocols, initiatives, founders, entrepreneurs are going to begin to look around the world

about where they want to base themselves. Some may do the US and something else, some may only do something else, Some may spread their developers into these different places. But ultimately this technology is happening, right this is the next wave of the Internet. You see it with other private sector entities wanting to engage with this technology. You see

other governments. And the question for the US is do we want to maintain our historic leadership role or are we going to give up on that fat Chris la Hang comebacks saying we have chief strategy officer at home benches. Meanwhile, shan Ali Bassett, we thank you so much for having us bring that interview. Now let's get onto some other key crypto news, because look, there's from fresh charges that've been brought against FTX co founder Sam ban Winfried, including

references to a pair of co conspirators. The US says we're involved in illegally seeking to influence the regulation of digital assets. The campaign cash from him and other top FDx executives has a potential to be the biggest infusion of illegal money into the US politics in decades. And what else we've got coming up? Yeah, a big exclusive interview with job CEO on earnings and how soon we can expect them, Sorry for this one car to take

off everything ev told next jokes. I love in fact from our point of view, when it comes to Tesla Autonomous, are their autonomous strategy autonomous taxi platforms is much more important than their electric vehicle strategy. In our view, our fifteen hundred dollars price target for Tesla, it's roughlo it's a little over two hundred dollars now, but our fifteen hundred dollar price target in five years is two thirds because of autonomous And when we listen to BYD, we

do not hear autonomous as a strategy. That was Kafe would of course, founder and CEO of our investments Carrow, showing how optimistic she is about Tesla's robotaxi strategy. It's a big part of their price target long term. We asked our audience do you think Tesla wins the robotaxi race? The answers kind of speak for themselves, but the idea is Tesla's got more data than anyone. Do you think they'll win? Carrow? It's a hard one to call because

everything seems so nascent still at the moment. What you see cruise on the roads, I'm seeing weymo now and then powering down where you are in San Francisco. How many are you seeing that are of Tesla? How real

can that be in five years? The difference, I think is that Tesla has all these vehicles that drivers are using in all kinds of markets jurisdictions, whereas Cruz WAYMO, they're just here in the Bay Area, right And I think that's the problem going forward that analysts are struggling to see when they prefer Tesla as the lead candidate. We'll continue to track it. We do on a daily basis. Now.

Shares of ev toll maker job jumped on Thursday after the company gave updates on its key milestones during earnings. The company's first aircraft is expected to roll off a pilot manufacturing line and fly within the next few months, and the electric aircraft maker says it's getting closer on those FA certifications, opening the door to commercialization. Joining us now JOEB CEO joe Ben Bevertt is making progress, Joe Ben. Analysts are still concerned about how far away commercialization is.

Answer their concerns. So we have been making remarkable progress. Twenty twenty two is a fantastic year and we are are really leaning in and the progress in twenty twenty three is really accelerating. We're now two we've completed two of the five stages of our certification process, and we're

making remarkable progress on third stage. As you mentioned, our first company, conforming Aircraft is has the parts have rolled off the pilot production line and we're beginning final assembly and we'll be flying that in the months to come. FAA certification is kind of the key bit, right because to get those vehicles electric aircraft in the skies that needs to be done. Are we talking months, years, decades before the FAA does that because it's a slow moving organization. Yeah.

As I said, we've got really unprecedented momentum, both on the joby side and on the FA side, with huge progress that's been made over the past few months, and we're just knocking down a milestone after milestone, and so the momentum is really there, and we're very grateful for the FA and the resources that they're putting into this

exciting new industry. Job And I was reading some of the analyst reaction to what you had to say twenty four hours ago, and the sort of more bullish name see you as the kind of proof point for an entire industry. You're leading the way. But the big concern they have is that the FAA has to come up with rules for a whole new category of aircraft. How much evidence do you see that the FAA has the

competence and energy to do that. Well, the exciting thing for us is that that process is now behind us, as we've completed those first two stages and the stage that we're rendering is completing our the last of area specific certification plans. So we've had the FA approved five of the thirteen, we've submitted an additional three, and we're expecting to submit all thirteen of those in the first half of the year. So and again the means of compliance are now behind us and we're really focused on

the future. This year is going to be a lot about testing, and that's what makes aviation our safest mode of transportation is the rigor with which we build every single component and then test every single component on the aircraft. Jovann, You also have this relationship with the Department of Defense. In long term, I want to understand what proportion of your business, your commercial business will be based on government

and military contracts and what will be a consumer facing business. Well, that's something that we're going to learn over the overcoming years. But what's really exciting today is the momentum we have

with the Department. Department of Defense. We have now have a seventy five million dollar contract with the DoD to mature the development of our aircraft, and we're in discussions with them on being able to bring our aircraft on base and provide really useful operations here in the US for our government partners, and we're excited to be beginning that on base operations will which will give us both revenue and even more importantly, allow us to streamline and

optimize our optimization our operations prior to commercial launch to be Aviation found at Joe Benbevett. Thank you so much for you the time on the show. It's great to have you. Um. Netflix is trying to grow internationally and so it is slash the cost of some subscriptions in more than one hundred different countries. But I'm afraid if you're like me in the US, it's not gonna be helping me here. And in developed world they're trying to well make us pay our ways stop on that password

sharing we've all been doing. But it's all about the focus on the developing markets. So think Asia, the America's Middle East, in countries that they haven't managed to build up so many subscribers, so countries like Vietnam, Thailand, and Adonesia could be seen subscriptions and the cost cut by almost fifty percent. According to some analysis, this should help boost perhaps the overall global user passed that two hundred and thirty one million number they're already at. Today's going viral.

Let's get back to some of that news that crossed this hour. The Justice Department preparing an antitrust lawsuits seeking to block Adova's twenty billion dollar acquisition of the startup Figma. Now, according to people familiar, no matter, our cases expect to be found as soon as next month. We're very pleased to say immediately with us as Anna A. Grana Is of Bloomberg Intelligence, why is it stop four when everyone hated this deal to begin with. I'm as confused as

you are on this one. You know, we'll find out tomorrow morning what happens. But you know, frankly speaking, we had expected that. Our anti trust stannel is generally basically said, it's going to be difficult to get this thing done because of so much scrutiny on large tech firms trying to buy smaller incumbents that are threatening their business. So we'll see what that happens. But you know, I'm also

surprised that the starts down right now. And I the other surprising you've outlining your Bloomberg Intelligence reacts dead is how soon this came about. I think the market expected regulatory bodies around the world to look at it, but

you're saying, actually, action is happening sooner than we thought. Yeah, And I'm to be honest with you, with Jendre's work, that is, I'm quoting very basically, I depend on her for all of these expert opinions, and you know, she thinks it is much sooner than what she was expecting.

And the reason is that I think there is so much I mean, every major tech deal is looked under a microscope right now, and they want to make a point that they are not going to, let you know, something like a Facebook buying Instagram again, um, you know out there. So let's see how this turns out. But you know, I think in the long run, if they are forced not to buy it, it maybe not. It may not be that bad of a thing for Adobe. They can deploy that cast somewhere else and try to

do this organically. Okay, interesting, it would probably be pretty awful for Figma. In some ways one might imagine just how much would this be coordinated elsewhere as well. I think one of the things that we have seen that once they've got a whip, that US organized authorities are really strict about some of this stuff. We have seen Europe already, you know, trying to break up you know, Microsoft Activision with basically saying you know, you've got to

get rid of a game. I mean that it's it's it's kind of like, you know, I would say this is very common across the globe right now, where most of the authorities are pretty pretty against large tech companies buying anything right now. It's the same Anaragrana. We thank you for jumping in from Bloomberg Intelligence bringing us the expertise. Yeah, that does it for this edition, Carroc of Bloomberg Technology. What a week has been so far, just one day to go and so much to digest tomorrow on our

Twitter spaces we do it every Friday. Thanks to you, we're driving the force of what we're going to be discussing at twelve pm New York Times nine am San Francisco. Tune in on the Twitter spaces to see if we've got some news breaking across it like we have done in previous weeks. Hey yeah, and there's also that huge story from German on Apple glucose and the Apple Watch. We've got a recam. It's the biggest one of the week. From New York. From San Francisco, this is Bloomberg.