OpenAI Boom and Coinbase Layoffs

chat GPT creator. But Crypto continues to make headlines with coin based announcing layoffs and Cameron binkle Bloss pushing for the ouster of d c g CEO Barry Silbert and a lackluster launched from Virgin Orbit puts on a dent into England's first ever space launch. And let's dig into that so much more ed because it was the talk of the town and talk of the world. There's all eyes on whether Microsoft would put such an enormous chunk of change to work when it comes to chat GPT.

Let's talk about it with bloombug Intelligences and run just talk us through why Microsoft will put such a significant amount of money, yes, distributed over several years. Why go into this isn't all about being Oh no, not just about being I think it's about every product that they have. You know, I would say that you know, everybody's been talking about AI for over the decade. We've heard Watson, but I think this investment shows that, um, you know,

it is the season for AI going forward. Because one of the things you have is you have a customer that is taking your software product, or is you brought a software product. Now you've got to give something more and return to that particular person to enhance that productivity. And AI or you know, natural ligumage processing is one way to do it. You know, whether it's tails automation, whether it's an email, whether it's office, you can see

any software backage. Microsoft has um this can enhance the productively of that particular applicating and arractive reports suggests that this transaction should value open ai it around twenty nine billion U S dollars. I points out that both Open ai Microsoft declined to comment on the story, which of course is based on on Bloomberg sources. Is this chat GPT the next big development in global technology? Is this going to be the story of the year for your world?

So I don't think it's just chat GPT. I think it's a question of whether there are certain advancements in AI. You know, it could be natural language processing, it could be vision, it could be other areas as well. You know, what can you do with it in your normal day to day products. You know, it's not that they're going to sell this chack product to you know, somebody as

as a stand alone thing. But let's imagine that you have a you're a salesperson and you're using Microsoft products to manage all your sales lead and you walk into the office and the and the system tells you that your highest probability of closing the deal today is these five people. And that's based on a lot of the emails, conversations,

what's happening outside um. All of those things can enhance the value of your your thought with which then you're allowed to sell much more than Let's take a competitor, whether it's article, let's your push really fascinating as to how this is going to be a creative and our grandam we thank you was always bring back intelligence. Meanwhile, let's dig into whether this is a movement in terms of profitability, whether this is some sort of paradigm shift.

Even Nico nactusers with us is managing director at General Catalyst, and you've been quoted as saying just that Nico talking about how this might be some sort of new new mobile kind of paradigm shift, the move to AI, generative AI. Just talk to us about the opportunities you see. Yeah, Hi, excited to be here. I has been a lot in

the news lately for a few reasons. There has been a slew of big brave rut in the form of foundation models, combined with all the useful demos that we've seen recently like TRADGPTY where the profile fixture generators have re literally captured the imagination of developers. This developer attempts is always a great time of an emerging ecosystem. We're saying that all these models are now tracting also a different than the larger class of builders, more product people.

All the previous and reasons of AI and AMAL systems before needed a lot of technical expertise that was mostly PC students that were a PC folks that were working for really big companies in order to create anything useful. So now it's very much a question of imagination and open AI is one of the few companies that have been driving this way, one of the innovation, but we're

still in the very early days. We at GC are seeing a lot of young technical gen z founders want to build product for themselves, and oh my god, one out of three of them that walked to our office are pitching us ideas. Hen Karen and I have had a lot of fun with chat GPT in our spare time.

We get the use cases, but I think we're kind of really interested in the business model and the valuation here right, the reported valuations for open aie billion dollars, but the idea it right is the open AI licenses, Chat GPT and the underlying algorithms to developers as a venture capitalists, why is this such an attractive potential investment. Look, I can't comment you on that particular you know, transaction, because I'm mostly spending my time on all things you know,

early states. But AI indeed the new take part dying that we've been waiting for, after mobile, after a cloud, um, and it's going to change everything that we know it. It's now happening for two major reasons, you know, especially for all things generative. A. I. The output of these

models can have very clear practical applications. If you're a creative person, for example, now you can have this set of superintelligence that can help you have ideas, pat up your work, and generally help you be more creative and productive, so you can see results right away. You can produce a new blog cost and your creative campaign with images really quickly and triply. Um You can also interact with

these AI models and natural language. You don't need to learn some complex computer applications to use them, which you can be a game developer pretty much overnight, Nico. What's so interesting is that, look, Google and Microsoft, these companies are AI experts, and they've dominated the field and certainly R and D in the space for a long time, but hasn't been sort of the pr headaches in many ways generative AI has exposed them to in the past. That has left a space for some of this really

exciting startup culture to breed within AI. Absolutely so, when you have like young founders who can now think you're with all these foundational AI models and the question of imagination, they're going to be able to build whatever they have in mind. The youth live in the future in their heads, and they're going to reinvent online dating. They're gonna reinvent how they're going to do their homework. They're going to

reinvent how to build games. Um, if you work for a big company, it's really tricky to build new products because at the minimum you need to ask your attorneys. G C would be living responsible innovation. That's our investment pieces and we on inverst of course, and folks who

have good ethics and integrity. This old way of like moving quickly and breaking things, that was the ear of building products and siliconbild in the past has come to an end when you gender racing the founders really, you know, don't embrace that, Henico, we just had thirty seconds here. What have you used chat GBT for? What's your favorite use case? My favorite use case is to put together investment memos. It's amazing. I have to do it, it's part of my job, and with chatty, I can do

it in like three minutes. That's incredibly pragmatic. Well, have you on again for a more robust discussion about how to best use chat GBT? Nikko but not source, Managing director at General Catalyst, Thank you very much, Gosh expect something a little more exciting coming up. What's the future of meme stocks as bed bath and beyond catches attention, We'll discuss all this and more next with the CEO

of the social platform for traders stock twits. This is Bloomberg in terms of a company that's teetering and probably going to go over the bridge. I mean, there's one copy that comes to mind. Uh, it's it's it's bed Bath and Beyond. I think that you know, they're not going to be around a year from now. I mean, they have too much that they're they're irrelevant. Um and uh and and by the way, the housing market, like I said as well for clip and that's not going

to help them either. Blue Capital Markets analyst Anthony to come with there pretty grim about bed Bath and Beyond the fundamentals. At least, let's just take a look at the shares because despite the fundamental story where we're worrying about bank up, see you're actually seeing the company closing up. Yes it's just two dollars, but still and I mean continues to really rally on the back of well meme stock investing. Is it back? Sask a man who knows Rohi Kanno is with us. He is the CEO of

stock twitch. It's a real time social network for investors and traders. Six million news is known ness. And we asked our own audience whether they think meme stock trading is back, and no, it would see you. We put a pole outsw to Twitter and overall they said the trend is dead. What are you seeing in terms of a desire to be backing these meme companies again? You know, I think the trend went compared to the context of one and the game stop fiasco over early twenty one.

You know that that that I don't think we'll ever see those kinds of craziness again. But you know, the meme stocks, your bed Beth and Beyond and others are very much still alive in the world of the trading and investing community that's quite active. They're still here, um and you know, alive and well might be aggressive. And with these you know, as we just saw in the segment there, Bed Bath and Beyond, there's a lot of

questions of whether it will be alive. You know, they made their announcements last week around going concerns and you know with the wider than expected loss that they posted today and kind of misrevue expect expectations. Uh, you know, there's a lot of barriers sentiment around there. But you know, but the community is still actively talking about it, you know from you know, from our community. The message volume

you know, the last few days has been extremely high. Um. And with meme stocks in general, the message volumes have retained for some So you know, AMC still finished last year two as the number one most talked about Stockholm stock wits. It was number one in one as well. Uh so you know, still around um, you know, and the conversations are still happening with these companies. Hey, Rischie, good to see. We're just showing some of the top stock tickers on your platform. And see another kind of

known meme stock, Tesla being another one. But where I love your jumper, It says for our audience New York or nowhere you just sweatshirt, sweatshot. Here we go. We just talked about the energy on your platform, right. I look at the headline. When when do you ever get headlined? It says X company headed for bankruptcy and you see a stock jump. My question is what is it that's driving the energy on your platform? Is it this herd narrative? Is it the idea that there are short sellers there?

What is it that is actually causing volume of conversation. Well, I think it is the the volatility around it, right, It is the combination of those. So you have you know, those short sellers and those that are fundamental investors and are telling us for all the reasons why you know, bed bath and beyond likely you know, may not be

around in a year from now. At the same time, you have those that you know, believe in you know, look at the price action, believe in the opportunities, you know, and get together and say, hey, you know this is a company like they can reorganize, and you know, what value can we find in this? And so the the debate, the conversation remains, there's passion around moving these you know, today's move, we don't you don't really know, like I mean, hey, it was a pretty big move on a percentage basis.

Today is that short covering you know from the loads of last week and the announcements of last week, right, uh, you know, uh, and when the news finally coming out today, so sell on the news or cover on the news. So you know, the conversation continues to happen, and it's this you know, discovery process between the bears and the bulls. And while you know, the bears are very strong right now, and the sentiment around bad bathroom beyond specifically is extremely bearish. Uh,

the conversation still happens. The markets are alive, right, people are still trading it. It's you know, the volumes are there and the cash tagging. I say, I didn't realize that it was your guys. It was stock Twits that came up with a when the cash tag I'm interested in We talked sentiment, We've talked particular names. What was so interesting in all the most active names on your platform was a lot of them were evs, not just Tesla, but ones that are based out in Asia and Vietnam,

some smaller known companies. Is the I'm gonna be evy? Is it gonna be Ai? Can you see the beginning the pickups and certain narratives, you know, we uh, we are speaking of AI right, And I just saw the second on chat ept fascinating. Um though I've also only used it for boring things thus far. Um. But uh, but you know, I think you look at that and for us, actually we're that's the area that we want to invest into, try to help us understand better. Even all the data and the and the content that we

have underlying it. You know, we have our sentiment analytics and some of these other things, but you can definitely start to see trends. You know, maybe not far ahead, but you know, in some cases you know a little bit ahead of them. What you know, kind of the maybe mainstream and media picks up on UM. And you know, evs are a very interesting space because evs, a lot of them went public through spacts. Spats have a large retail community around them, and so there's a lot of

passion around the evs. Obviously, you have Tesla, which is you know, kind of the godfather of not only just all you know stocks, but the ev world. But you have your Mullins and your Lucids, and you know, uh, your Fhiskers, etcetera, etcetera. And you know we have we have CEOs from them something that believe the CEO of

Fisker is active on stock to its um. But you know, these these companies have really robust followings and highly engaged followings, maybe because they got in at this back or maybe because hey I love Tesla and I hate Mullen, or I love you know what. You know, the next you know, product to come out of Fisker and so you know, I think that's gonna you know, destroy Mullin or whatever the case may be, right, um. And so these are

very retail driven stocks. I think just you know, the genesis for a lot of them coming out of the back world being very spac retail driven. UM. And so you will continue to I do think ine will continue to see a lot of conversation around the EV world. I think, you know, there's a lot of interesting things that are gonna happen in the e V space. We're gonna see, if you know, what happens with Tesla and and that's gonna be a bell weather for the conversation there.

But uh, there's I don't know, the AI has really made it in to um the kind of public stock and public markets that guys, right, you know, I don't know, there's not a lot of companies you'd trade on their Hey, Richie, when when that moment happens? Though, come back on the show and let us know, because we're trying to stay on top of trends and this is the new era

of markets engagement. That's Rishi Kanna, the CEO of the social platform stock Twits, is not the only social platform and markets in the news will cover that later on.

Thank you very much. Over the last three years or so, we've added forty billion dollars of organic revenue to that business, so there's tremendous growth, and in part it's through innovation, and you articulate an example, a digital formulary or the evolution of our virtual care capabilities and taking virtual care not just the Triagion urgent care event, but actually to coordinate behavior health services who are virtual primary care from

that standpoint, so we see tremendous interest adoption for those services. That was signal CEO David Cordani on expanding digital health services, part of an interview from JPMorgan Healthcare conference in San Francisco, which is well underway. Kaylee Lines is on the ground braving the storm's wind, rain and hail. Is it like

that in the conference room? Kayley, Well, it's very crowded in the conference room, and I will tell you that much, and a lot of people walking in here with umbrellas and raincoats over the last several hours because the rain has been coming in sideways. But it's really noteworthy that there are so many people here in San Francisco in

the middle of this storm. This is the largest in person gathering of the health care industry we have seen in about three years, and that really speaks to this idea that the post COVID world and what that digital health world really looks like is a key theme here at this conference. This idea that you have to have accessibility to healthcare remotely in a more expanded way, and that also over the course of the pandemic, a lot

of those physicians we're dealing with burnout. What can you do you from a technological innovation standpoint to help providers in the industry but also really just accelerate the industry going forward. In AI in particular is a big theme that has been talked about over the last two days here Cools. It is we've been talking about AI throughout the entire show, so ALTI and Intenlligent is going to

meet from incenter and healthcare too. But one of the applications that Katie on one other areas of technology of being talked about, well, on the AI front, you are seeing some deals to health existing companies accelerate their footprint in that way. Beyond tech actually today announcing in six four million dollar deal to buy Insta Deep, which is a UK company really based on AI. You're seeing some other deals actually taking shape as well. Granted they're relatively small.

We've only seen about a few billion dollars worth announced over the course of this week, but this is still an industry that has been very starved for deals. Over the last year, two U S healthcare companies had forty three fewer deals announced than in one for biopharma. It was the lowest in numbers, and we're really looking to see if there is kind of a pickup in that deal making appetite in Hey, Kayleie, I think I'm right and saying you spoke to the CEO of Novovacs, right,

what was the what was the takeaway? Well, it's really for that company how they capture more share of the endemic market since during the pandemic they were a bit behind on their pure COVID vaccine. But we had an interesting conversation around pricing now that that is going to be shifted to the commercial market. Just take a listen to what he said about his expectations. I think Weiser and Maderna have set the stage and I think what

they've started at a reasonable level. If you look at what the cost benefit analysis is for for that type of pricing. I think it's reasonable, and there's always a discount from that hundred hundred and thirty dollar rage, and each company will find his own way. So it's really going to be a conversation about what that private pricing

looks like. Frankly, what the appetite for COVID vaccines will still continue to years we get further and further out from the most most acute stages of the pandemic, and how these companies reinvent themselves in a post COVID world as well amy an area we can, despite a recession, continue to be optimistic about sunny healthcare, so many applications. Blue mos Kady lines weathering it out there in San Francisco. We thank her for it. Stay well, keep drying. I'lcome

back to Bluemo Technology. I'm Karain High in New York and one I love good afternoon. It is fun to be in the same place and and I mean all day we have been talking about one Microsoft potentially buying while not buying, but investing some ten million dollars into open Ai. Of course a parent chat GBT, but what about actual startup acquisitions, what about big deals with about

activity there now? Actually we know that it dropped venture backed M and A dropped some from twenty two, but there are glimmers of hope and one Katie Ruth for about it for this Business Week, Kasey just took us through the thinking. So I POS kind of dead, But does that mean what we get a little bit more M and a intens of exits exactly? So you know, as you know, venture capitalists can only make money in two ways I p O S or M and A.

Those are the two primary types of liquidity events. And so the I p O window has largely been closed for over a year, and so that's going to put pressure on more companies to sell. Even Adobe Figma, which we broke the news of last year, they partly sold because there was no I p O window. It was a great price. They sold for twenty billion dollars that was more than double their last private evaluation. But there was no alternative in the near term and they knew that.

And so we're going to see some deals that are going to sell maybe above their last private valuation. But what we're probably going to see a lot more of is companies recognizing that they have to sell for below their last private valuation. Evaluations are obviously down significantly. There's no I p O window, and there's also, you know, a lot of investors skepticism about investing at the same

prices as before, and so that will lead to that. Hey, Katie, you and I were both in Vegas last week, very busy, and you're very busy. You go to all the parties you know who to talk to. I kind of got a mixed picture, right, There is some opportunities that folks see in terms of deals that can get done. I guess when Caroline and I are talking to venture capitis in particular, they talk about kind of seed stage as being an opportunity, for example, where you can make some

vets in an environment like this. But what kind of deals where do you expect activity to happen at least in the first half of this year. Sure, certainly investors who invest early are less phased by the difficult exit environment because they have a longer term um outlook. But for companies that are growth stage, they're going to have

to be more open to potential buyers. There's unicorns on paper and um, you know, that's that's too many in this environment, and so we're going to see more consolidation. I'm hearing maybe fintech is going to see, you know, there's maybe too many payments companies and they're gonna have to consolidate. I always hear that about cybersecurity, and um, you know, I think we're going to see a few

different types of start up acquisitions. We're gonna see strategics recognizing they can get a lower price than maybe they could have last year or the year before. For some of these companies. We're gonna see um, you know, unicorns buying each other. And then we're also going to see private equity firms buying private companies that are venture backed. Maybe they see slowed growth, but they see some potential there to help fix them and help them grow into

bigger businesses. Kasey. What has to happen though, is that there has to be more of a meeting in the middle of I'm pretty sure last year there was a lot of money to be put to work and what were many felt was cheap companies, But the founders aren't going to want to let go of that company at those sorts of valuations. What gets a founder there to realize that they have to take that price point. Is

it ultimately that they've run out of runway exactly? And I think that you're going to see more and more of that. I mean, certainly a lot of companies raised a lot of money in and so some still have quite a bit of runway and they may not be feeling that pressure yet. But when companies start to look and say, oh, we you know, have less than yours runway, we're having trouble raising, then a burden hand just looks attractive. All right, bloom bers Katie Ruth, who was good to

hang out. Thank you, come back more scoops please, that's what we like. I think it's interesting because CAA, you and I have had a range of voices on right. We had equities in on twenty four hours ago. Second half of this year, I p o s but select names. You know, they kind of investors looking for some quality, you know, some some strong balance sheet revenue generating companies. But there still deals out there to be done. That's

at least what the takeaway I get from Katie. Let's hope that it's not all AI and that all we do, every single show is going to be talking aboutficial intention and I'm not going to knock it love a little bit of sprinkling of AI, but it seems to be the dominant force at the moment, certainly from the deals

we've been hearing about. And I do wonder where the first areas to start to see that consolidation that Casey was just talking about, and indeed where the cracks are in the I p O market that is going to see a shot of light that was being talked about by equities. And I thought it was really interesting about the conversation yesterday is the secondary market is still resolively active.

And look, there's still gonna be a lot of people working for these companies that have life moments that need to be able to have a liquidity event, right, and you know, the secondary market can be a precursor to activity in the I p O market down the line. And as Richie said, e VS that play is still popular. I'm talking shop a little bit, of course, but maybe a big year three. Let's talk crypto that it's not gonna be big, Oh, it's going to be a big

coin base. Just the latest company to announce another round of job cards. Meanwhile, Gemini crypt are Exchange co founder Cameron binkle Voss is calling on the board of DCG to remove CEO Barry Silbert, accusing him of quote bad faith, stool tactics, best person for the job here bloom bag Shnati Bassak following these developments, Let's start with the accusation. Uh, what is this all about. We've seen very open public letters from Cameron win Boss that addresses Digital Currency Group

and Barry Silber here. Remember Genesis, the lending platform, was the partner for the Gemini Earn product. And remember when it comes that earned product, there are hundreds of thousands of retail investors that had exposure to that lending product here.

So a lot of things have gone wrong in the last couple of weeks, and now you have Cameron Winkle Boss calling for Barry Solber to step down at the CEO of DCG, really accusing him for a lot of bad faith tactics, really getting to the edge of accusing him misleading investors, really for engaging in something that was fraudulent.

Of course, we have DCG importantly also fighting back and saying that this is also the Winkle Boss effort here to deflect blame over to DCG, and at the end of the day, what you have is to count our parties here in a very difficult decision, both difficult position, both on their own as well as together. It's interesting DCG was sort of saying, look, behind the scenes, the conversations are more productive, some you'd hope a little bit more cordial, but in public it's an airing of grievances

that's painful to see. What's been interesting is amid all this fallout, many looking to other areas of Barry Silbert's empire to maybe be a place to take a bet, right, can you just talk us about what's happening with gray Scale and some of the bitcoin trust area. For weeks now, maybe even months, really, there has been this really significant discount and the gray Scale Trust, and there's this question about whether you could take over the gray Scale Trust.

There's a question of that's even simpler. Is is worth buying at these discounts? And has the meaning of the Gray Scale Trust really changed? Before it was one of the most significant institutional ways to get access to bitcoin, and over time it became a bigger bet on whether it would become an ETF approved by the SEC. At some juncture and if that doesn't happen, what then is the investment thesis and how does it change from there?

Remember this has been a cash count through the feed product the fee pool for Digital Currency Group, but then you have to look at how much it becomes necessary for Digital Currency Group. We're talking about layoffs across the industry. Digital Currency Group. You have an open letter from Barry Sober out to investors today. Fascinating to see him be public like this. He's not all that public usually, we have not seen him out there on television or on

Twitter all that much like we've seen some others. But he was talking about having to close down a wealth management sin citiary as well as cut costs aggressively the last couple of months, which makes a gray scale even more important for him. Right cuts, layoffs, crypto, those are the headlines right now. Let's let's talk about coin base. Another round of layoffs, the latest round of layoffs. What

do we know about this particular round of layoffs? You know, one thing to look at is how investors have reacted to it. They reacted very positively today, and not just investors, you have also cuth side analysts also reacting pretty positively towards this because they believe that it will cut expenses significantly enough for par on the screen right, the Stoll cop thirteen percent in the session on Tuesday over a two day basis, So you're right, positive reaction, very positive

reaction here. And the idea here is will this help them reduce expenses enough to make it through the rest of this crypto winter, this huge downturn, this downturn and trading volumes that we're seeing now. The question then becomes for coin based and all of them, is what does this mean for the products that that they're building? Do they still are they able to remain competitive here and offer new innovative things when you're watching these massive massive

headcount reductions now. Interestingly, one crypto trade publication has accounted twenty seven thousand cuts across the industry. So all in all, with what we've seen so far, so we really definitely have a lot of pain out there and at the hundreds of people of our coin based in addition to hundreds before the reality of it is even aces that are growing. You take Galaxy Digital, they cut fifteen percent

of their head count. They think they're going to end up gaining a lot of that back through acquisitions later. So what do these cuts really mean in terms of how they built through this cycle? Well, said Shinnale Bassa and quick disclosure that my husband is the senior manage

over at coin Waste. But let's talk about perhaps the movement of talent within this at the moment end, because what's so interesting is that while many in fintech crypto lose their jobs, there are areas in which maybe they could find a head hunter in the future, and not the most usual places the one you'd expect Liquidity, which is I'm pretty sure most people in finn Twitter as

it's known Financial Twitter, follow it. It's a massive digital media company basically set up by an ex fall street guy or girl we don't know anonymously, but they're now getting into the world of well jobs right, head hunting. So unsurprisingly one of the best read stories of the day Liquidity partnering partnering with Whitney Partners kind of classic head hunt. Uh. You know what's so interesting. You know we talked about crypto osnali job cards pay. What Liquidity

has done is amazing. You know, they get fed information by everyone working in finance about opening salaries raises and they've kind of taken that and said, well, how do we move it forward. It's an astonishing platform. It is very ridicule and meme and satire focus. But if all these people are being laid off and they're looking for a job, is liquidity now an option? And it just also speaks to the growth of where you can take what is a social media startup literally is a social

media start and then becomes a digital media company. I mean, the founder has gone into angel investing, but notably is now thinking how can I continue to expand how can I serve this particular community of junior bankers many of them are junior looking for expertise. And they said, well, it was the adverts digital advertising that people kept coming to, particularly around fostering their own skill base, being what to upskill, being able to find out what the view on jobs,

and how to enhance their own experience. So it looks as though millennials but also mainly gen z, are looking not just to LinkedIn for networking when it comes to a job, but to Instagram and to social medium more broadly. Yeah, and you know, I'm a follower stock, Twits and other platform don't put us out the job, please come on. So I want to take a look at some of

the tech names that rely on advertising revenue. Right this kind of pivotal year where we had the war in Ukraine that dented the confidence of advertisers in Europe, we had changes in the industry. Long Must buys Twitter, and you can see on the chart behind me the kind of state of play for what analysts think we end

two in in terms of sales. Of course, we're waiting for those earnings reports from the last three months of the year, but we're also thinking about how market share might change, how the world of advertising has changed because consumer trends are changed. This is data from the Loomberg Intelligence Forecast two on kind of where market share lies. Alphabet largely through Google Search, but don't forget YouTube kind of dominates in that tech space away from traditional tech.

This data excludes China, by the way, where there are many other players when it comes to search and domestic products. Then you look at Meta that comes up a big second wall. Is that going to change? There are names out there in Wall Street that see Meta as a top pick for three because we're coming off a low base and we might see a rebound, and then there's the optimists that look at Amazon and say that's a

sleeping giant when it comes to adds. I think it's really interesting to take this as an inflection point twenty three because that's the snapshot of the year as a whole.

But what we know in those final three months of the year going into the first half of this year that data carrow is changing, and actually we might see some new names emerge and some legacy names suffer as the advertising space changes, and the advertising space so richly changing terms of players, not only with well the TikTok's which keep on taking market share, but also the fact that TV is getting into the space the Netflix of this world, some other key advertising space that Amazon is

now owning. Please say A great story written by Alex Brinka is on dot com and on the terminal today.

Certifi of course one of the key tech editors, going to join us to talk through all of this and the movements within Meta and very other various other social players today just talk to us about the changing of the guard and how much people are anticipating this three Well, for the first time in two we've seen that Meta and Google together are less than half of the overall digital ad market according to Insider Intelligence, and that is not happened since and they expect that share to continue

to erode as we go into three and beyond. And that's due to a number of factors. You mentioned the rise of more options on TV and with e commerce players like Amazon on and I mentioned Walmart as well. Um, but it's also because of some of the challenges in the market. Um. Beyond the skittishness due to Ukraine and other economic factors, you've got the fact that their ads simply aren't as effective anymore because Apple has instituted some some tracking changes so that they can't get as much

as much personal information to target those ads effectively. So the same ads are not as useful to advertisers, so they've been looking for elsewhere to put their money. Um. So that's been really difficult for these big players who at the same time or under under scrutiny by regulators, especially for antitrust and m privacy. So it's it's going to be different going forward. They may not be this this big scary do woppoly that the regulators have been

telling us about for so long. Um. That share may road and we may see players like Amazon and Netflix and TikTok take up more. You're just talking about sort of the data that a lot has sort of disappeared from the likes of Meta, the ability to track certain people given apples changes. But also there's some self regulation going on perhaps as well as to who they target

how they target them. There's a great piece by cut Wagner today about teenagers gender and whether or not that can still be thought of as a data piece for advertisers and marketers, and and now they're not going to be able to look at that. Well. Mena's trying to improve the way that it manages teens on the platform after after a lot of scrutiny. We've heard a lot about mental health online um and how Instagram in particular

has been affecting teen mental health. So they in part because a lot of this pushback from advocates and regulators, they have been reducing the ad targeting capabilities for teens.

So gender is one of those categories. They also reduced the abilities to target teams based on their past behavior, and that's all an attempt to try to make their internet experience a little bit safer, and they didn't go directly into whether there was a particular catalyst, But I really think that it's been a theme for Meta over the past few years, and they realized that the way that young people are are operating on their app is a matter of great concern to parents and regulators, and

they need to do something about it, all right. Leading our big tech coverage out of San Francisco, Sarah Fryer, thank you so much. Now coming up, what happened at England's first space launched. The UK's first space Lawns had a midflight mishap, smooth take off, you can see it

there will explain more, trust me, that's all. Next, this is Bloomberg going viral, perhaps for a negative reason today because Richard Branson's Virgin Orbit when it fell in terms of share price, us off of the company's first launch out of the United Kingdom, failed to reach said orbit that it has in its name, and we can talk to the reasons why and why everyone was therefore searching

in on Google and seeing it trend on Twitter. It's putting bugs lawn rush, she covers space for us and clearly the share price speaks a lot of words here. It did not go as planned. No it did not, and you know, unfortunately it's it did look as if it was going to go as planned. The way that Virgin Orbit launches, it's not what you typically think of as a rocket launch, where the rocket takes off from the ground. They do an air launch style. So what

they how they get into space? They have a seven forty seven modified plane called Cosmic Girl, which carries their rocket launcher one underneath its wing. That plane took off as planned from spaceport Spaceport Cornwall. It reached its intended drop zone, it reached the target altitude for dropping the rocket, and then it ignited that engine. Everything looked fine, and then something happened midflight. We don't exactly know what yet, but it didn't reach orbit. It didn't make it to space,

but not to orbit. Yeah, I mean, this was supposed to be a key moment for the UK space industry, right the Cornwall new key. It's like the surf mecca for for the UK. The UK was ready. The UK Space Agency, which imagine hasn't been that busy for a while, was sort of really excited. What is the response from from the company been, Because this was only their sick attempt at launching with the Boeing seven four seven mechanism right for successes, but this is their second failure. I'm

trying to understand what went wrong. I think we're all kind of trying to understand it as well. I think we as the company has stated, something went wrong during the second stage booster ignition UM and if you were watching the live stream last night, there was some funky data coming in. It looked as if the rocket was trending in a wrong direction. However, the livestream hosts were

saying that everything was going well. The social media, the Twitter account was tweeting out that they had actually reached orbit, but then we learned, you know, that was a premature tweet and they actually ended up de leating that tweet once they found out that that was incorrect. So it's still really unclear what happened. All we know is that the all nine payloads were lost, and uh, they're gonna

be doing an investigation to really figure out what happened. Hey, Lauren, irrespective of the failure, what was three D two be for for the jin orbit in the UK? Were there any kind of big milestones they were hoping to hit? Well, they were definitely looking to increase their flight cadence for sure. That's one of the benefits that they tout with this air launch method is that they're able to be more

flexible and where they launched from. All they really need is, you know, the right runway and then they can and the right airspace and they could potentially launched from a number of new locations. Plus, this was the first time they had launched outside of their normal UH launch facility in the Majabbi, California, So it was a big and and you know, because of the national pride is so created with it, there was a lot of big spotlight on this launch, but so unfortunately a lot of people

did see it go right. So it's unclear if Virgin Orbit is going to be able to expedite its launches as it as it intended. However, it did only make it to orbit twice last year, so it's not not a high bar to clear. Yeah, a lot of dash hopes, some afraid Bloomberg Space report to Lauren Groush. Thank you very much, Caroline. Yeah, I mean knock for anyone in Cornwall. We still love you. Meanwhile, that doesn't for this edition

of bloemag Technology. We Wednesday, and we've got some great conversations. We're diving into crypto that little bit more. Salon has Head of Strategy, is gonna be here in the studio. He hit up podcasts, I Heart Radio, Spotify, Apple, This is Bloomberg.