OpenAI Targeted in Complaint and Nasdaq's Rally

of further jack GPT rollouts. In just a few moments time and the bulls are back full market coverage ahead. Is the tech sector leads the way? Then? Has that one hundred heading for its second best quarter of the decade. How does that translate to private markets? Plus conversations spanning cybersecurity, venture, cabital, the metaverse and beyond. We'll bring you the inside from the c suite for all the latest and all corners

for the technology sector. Let's get your markets. We're moving away from jitters around the banking sector, the FED firmly and focus. There's this kind of growing feeling that the rate heights cycle is coming to an end. You look at them as that one hundred up eight tenths of one percent, but outperforming the broader market. Continued out performance as semiconductors, but also the US listed chairs of Chinese technology.

Little action in the bond market, kind of muted trading, but you look at the short end of the curve, the US two year at four point one percent. We're talking a lot about yield curve inversion of what that signals for a potential recession, but that is where the muted actions at at that short end of the curve.

This is where we are the last few days of March, the last few days of the quarter, and then as that one hundred is kind of heading for its best quarter, second best quarter in the last decade, we're looking for signals in the trajectory of rates still, but also thinking about the Fed's balance sheet and what they're doing in terms of easing and how it's impacted the technology sector evaluations. That's the Matt grow picture. Hey with the micro out

in New York Bloombos. Katy Gryfeld, Hey, Katie, Hey, ed Well, I want to start with bitcoin just for fun, because that's been one of the big stories this year, is this big bounce back that we've seen in the crypto space as a whole, led by Bitcoin, as you can see up year to date by more than seventy percent, and it's a real choose your own narrative. The true believers would tell you what we're seeing in the banking sector that just proves the promise of crypto and why

you want to be in it. Maybe a more salable narrative would be what you're just talking about, what we're seeing with tech shares and a potential pivot coming from the FED. But in any case, Bitcoin up by seventy one percent year to day. Let's go back to reality, though, and talk about some of those single stock names, bed Bath and beyond. One of the stories today, the company filed to sell as much as three hundred million dollars worth of shares, has also came out with some preliminary

sales figures that disappointed in a big way. You can see shares off by more than nineteen person. Moving on Ali Bob, of course, the news from earlier this week is that it's going to split the Empire into six units. The news today, according to people familiar with the matter, is that its logistics arm is exploring a Hong Kong ipo that could come as soon as the end of this year, and JD dot Com maybe following suit. Two of its subsidiaries also potentially exploring a Hong Kong listed ipis.

You can see JD dot Com up about nine and a half percent or so and C three AI at This is interesting. Even with all the headlines around AI that I know you've been following very closely, AI stocks not really feeling the heat yet. This stock in particular up about three points seven percent. Yeah, I think you know. The availability of capital, the energy from investors in this

space is ongoing despite what's happening behind the scenes. Speaking of a prominent tech ethics group filed a complaint on Thursday with the US Federal Trade Commission urging the regulator to halt further commercial deployments of the next generations of AI technology that power popular tools like chat GPT. The Center for Artificial Intelligence and Digital Policy ask the FTTC to open an investigation into open AI to determine if the commercial release of the fourth generation of the tool

violates US or global regulations. For more, let's bring a Nindo Managing editor covering tech and cybersecurity, Adam new York Lin. What do we know, Hied. It's nice to be here, thanks for having me. So, as you said, this very prominent tech ethics group has filed this complaint with the FTC, and very specifically, it's asking the US government to make a very rare intervention here and hit the puzz button on this huge boom and rush into building smarter and

smarter generations of AI. Like you said, the complaint right now is focused on this GPT four language model, the latest one that is behind chat GPT, and as we all know by now, it's a very convincing simulation of human conversation, and that is the fear here. The group is specifically, as you said, asking for this investigation into open AI to see if GPT four's release actually violates

existing regulations not just in the US but worldwide. And of course this comes just a day after more than a thousand people, some of them very prominent people in the AI and tech space, signed a letter urging the same Lynn, I think there's an important point of clarification that we've got to mate to our audience, which is this is not a complaint from the FTC. It's a complaint to the FTC by basically an interested party. Right,

That is right. The complaint is being led by this center that is a tech ethics group that is very well known. Behind it is this long time privacy advocate Mark Rottenberg, who is trying to press the FTC to take action here. All right, Lyndon, managing editor covering tech cybersecurity out of New York, Thank you so much. Let's

stick with this conversation. Bring in Stuart Russell Berkeley, director of the Center for Intelligent Systems for More's the second name on the list and that petition calling for a halt to AI development. He's also, of course the co author of the standard textbook Artificial Intelligence A Modern Approach. Let's start the basics, professor, why did you sign that petition? So the petition expresses the concern that these kinds of

systems are extremely unpredictable. In essence, we have really no idea how they work inside, and so they simply don't comply with principles that have already been established. For example, the OECD has a set of principles that have been signed up to by the United States and all the other advanced economies saying that AI systems need to be shown that they will not present undue risk two users.

And at the moment, there's no way that we can show that these large language models don't present undue risks because we don't know how they work. And there are already many many stories of apparently psychotic conversations the one reported in the New York Times, for example, a one reported in the Belgian press just the other day of chat GPT working with someone as they prepared to commit suicide and in some ways encouraging them to continue with

that student. Those are the broad risks that the petition identifies. There are lots of questions about the petition itself. For example, when it was first published online, Sam Autman, the CEO of open AI's name was listed open Ai, told us at Bloomberg that he never signed it. Have any of the organizers or you as signatories among yourself of discussed that that's some of the names on that petition may

not actually never have signed it. So I think what happens when you open one of these petitions for people to sign up online and add their names. A lot of jokers come along and put somebody else's name for fun, and probably someone thought it would be cool to pretend to be sample. When I think Shijinping, that name also appeared, and so very quickly the organizers realized that they were being subjected to a campaign of disinformation, so to speak, and so they put in steps to slow that down.

Elon Musk is a signatory to this petition. I've written to Elon Musk multiple times in the last four d eight hours to try and confirm that he actually signed it. Are you confident that it was actually him that signed it? So I have to say I had no role in the preparation of the petition or in the vetting of the signatures. But Max Tegmark, who is the president of the Future of Life Institute, which organized the petition, is in direct contact with Elon Musk, and so I'm pretty

confident that that's a real signature. What you're asking for is a halt of six months, a specific period where next generations of large language models or the underlying technology that powers the generative AI tools we're talking about, are not released. How realistic do you think that is? To coordinate that everyone agrees to just stop. I think there

are different ways of viewing what we're asking for. I think the idea that you know the CEOs of Microsoft and Google and deep Mind are going to read this and say, oh, sorry, yeah, you're right, we completely messed up, and we'll definitely stop right now. I don't think that's going to happen, but I hope that it at least begins a serious conversation about what would be necessary to

develop systems that we can have confidence in. And there's two parts to that, right, Could we develop ways of testing the systems that we already have so that we can show that they do not present risks that they will not help people to commit suicide and go on, or we change the way we design the system so that we can do that, And I actually think the

latter is probably more likely. I would also say that legislators the European Union, for example, are close to passing the AI Act, which would require these kinds of steps as a matter of law, so that you could not put systems on the market unless you could satisfy the regulators that they were safe. Professor twenty four hours go, we had Sarah Gao, who's a founder of a VC firm called Conviction on the show. She's been investing in

AI for a long time. She was not a signatory to the petition have listened to what she had to say about this. I really care about access and also a reinforcement of bias. But the thing to do is to address these concerns in like a open and transparent way, not to call for a halt to development. In the context of a halt or a six month period of non new releases, Sarah's point is that she thinks the technology should be made increasingly available. More broadly, what is

the risk with that? Well, as she pointed out, the systems already exhibit bias and various other kinds of problems. So by making further generations of this technology available, which might be much more capable of causing serious disruption in our society, that would only make things worse, not or I think what we're asking for is that the developers of the technologies take their responsibilities seriously. A professor, We're grateful for your time. You're staying up late for us

out of Singapore. You come at this from the academic perspective, the research and policy perspective. But when I went to our audience and asked about questions for you, they basically ask, is this just sour grapes? Is this those in the field that look at open AI and say you're the leader here, we are trying to catch up, and that's why we want to halt. No, not at all. I mean, we're not in the business of competing in the commercial market.

Some of the underlying technologies of large language models emerged from academia, and pretty much all of the deep blening technologies emerge from academic and basic research lamps. So this is really a question of asking that the systems that are deployed by that affect the lives of billions of people are actually systems that we understand and that we can show our safe whose capabilities we get predict I

don't think that's too much to ask. Stuart Russell Berkeley, Director of the Center for Intelligent Systems, Thank you again for your time and staying up late for us out of Singapore time. Now for talking tech today. Honey in On China, a new Hong Kong based fund, pans to raise one hundred million dollars this year to invest in digital assets startups. Prodigital Future has raised thirty million dollars so far, and we'll turge it early stage and developing ventures,

particularly companies with ties to Web three. The fundraising comes as Hong Kong aggressively caughts crypto companies and talent to revive the financial center after the slowdown spurred by COVID lockdowns. The city sees digital assets is key to financial revival. Chinese regulators held a meeting with banks to gauge interest in taking over Silicon Valley banks stake in a local joint venture in a bid to safeguard the banking system

from the lenders collapse here in the United States. The China Banking and Insurance Regulatory Commission convener meeting this week to discuss the disposal of svob's fifty percent holding in SPD Silicon Valley Banks. Some Chinese banks have already indicated interest, although discussions that are a very early stage. It's also

unclear if regulators prefer a foreign buyer. An Ali Barber will consider gradually giving up controls some of its main businesses over time, after completing a major overhaul to create six new companies that may debut on public markets. The company's gain more than thirty billion US dollars of market value since Tuesday's announcement, which also fired up a rally in other Chinese technology shares. The new divisions will begin

separate strategy planning. And now, according to Bloomberg's reporting, let's get to that reporting for more on Ali Baba. Bring in Bloomberg, says Bill Lee out in New York. Where are we right now with Ali Baba? Hi, Yeah, that's definitely the big news of today. Ali Baba said it will see control over its unit two of the six units, although when and where and by how much we still have to find out. Yesterday overnight there was a press conference or a press briefing blue the CEO, Daniel Zang,

and there were three takeaways. So first is that it will be a case to case basis, as you've mentioned. The second is that the restructuring is already underway. We just don't know when or when it will be finalized, but it is underway. We've talked about this extensively this week. And the third is the CEO admitted that this is so that they will become more nimble and they will respond to the markets, market regulatory environment more positively. They said that they want to be more of an asset

and capital operator rather than a business operator. But the CEO did stress that he wants to have more synergy still and it's also interesting because Ali Baba Holding that's its company names that will literally be the whole day company. And another news that also came across the bloombergwire today is the logistics arm of Ali Baba, that's Tinieo. It's already preparing for its first share sales, so it's targeting a listing as soon as the end of this year.

And we've talked about this also that the two things that will come out of this is that it will revive a lackluster IPO market, most of which are I am Hong Kong. And the second is that it will just be more nimble in a piece of regulators after a crackdown that we've seen when Ali Baba tried to list its financial group for an IPO in twenty twenty. Right bloombos Isabella, we're sharing that chart of how long or how far the shares have to catch up before

they hit the average twelve month price target. All right, Coming up, we're going to discuss cybersecurity risks and the threat posed by North Korean hackers. That's with MANNYANS Director of Intelligence John holt Quist also taking a look at crips a bit quite interesting. We've seen some undulations i'd put it in the last twenty four hours or so.

We're at a twenty eight thousand level right now in terms of dollars per token, but there's a lot of momentum right now in discussion about bitcoin pushing higher to thirty thousand US dollars per token. In this session, we're kind of moving to the downside softer by a round a percentage point. We'll keep our sites set on bitcoin.

This is Bloomberg North Korean hackers from a group known as APT forty three opposing as journalists, trying to gather intelligence about international officials approach to nuclear security policy and Kim Johnson's government. That's according to new research. For more on the nation's espionage capabilities, let's bringing John Holtquist, head of Mandian Threat Intelligence and Google Cloud. John, these are really interesting findings in the research that you've been driving.

What are they trying to find out at specifically posing as journalists? Why that tactic? Well, people answer questions from journalists, So they're reaching out to people and think tanks and the defense industry, and you know, ultimately they want to compromise their systems. But what's so fascinating about this is they could just ask questions to these people and get responses. And really what North Korea is trying to do is

gain decision advantage. They want to know if they'd launch a missile, how people are going to react, and these are the experts on those questions. So what do your findings tell us about their capabilities? How serious is what they're able to achieve. Well, you know what's so interesting about North Korean actors is a few years ago they started doing this espionage activity and it's clearly supporting their nuclear ambitions. But the other half of this is all

the crypto to activity that they're involved in. They started using their spies to steal a money globally a few years ago, and even this team that has this espionage operation is stealing crypto on the side that there's a digital cyber component to this. But as part of your research, you point out in person interviews between those posing as journalists and experts are also taking place. So what is the Mandian strategy? How do you protect against both of

those issues? Well, you know, we see them coming and pretending to be these people, and what we're lacking or the people who are getting hit are lacking is really a strategy of identifying who they're talking to, right I don't think, you know, if you are in a position where you're likely to be targeted by spies, you really need to up your game as far as who you're responding to, how you authenticate them, and what you know

countermess you're taking. Is this unique to North career or did you see evidence that it's a tactic used elsewhere? Not at all. You know, we see Iranian actor carry out targeting pretinning to be journalists. The Russians are doing the exact same thing. They've got obviously a huge need for decision advantage right now, given that the war that they're in. If you are in a business that is likely to be targeted by spies, you really got to

take care of who you're responding to. Will use the word spies, you know, we identify that according to the research, North Korean intelligence services are the ones directing this activity. Why is it that significant that the intelligence services of that country are kind of putting the strings. Well, you know, a long time ago, it took so much money and

time to do human operations, and those still happen. People get We catch this human spies all the time, but it's so much cheaper and more efficient to use hackers or so many of these problems. And these guys can get answers in hours. They can literally go and ask somebody for a question and get the kind of answers intelligence services used to spend, you know, years trying to answer. What do you think happens next? I understand you don't

have a crystal ball, but what are you bracing for? Well, you know what I'm really bracing for is them to up their game on the crypto side. We're right now in the midst of a major incident that is involving potentially thousands of organizations, and we think that, you know, one of the reasons that they're doing, that they're behind this incident is to gain access to crypto users. So that's going to affect organizations involved in crypto, that's going

to affect everyday users. And that's one of the most interesting parts of this. You you, an average crypto investor could affect it all, right, John hold Quist and Mandy and bringing us the data. Thank you. Welcome back to bloom Big Technology. Ed Ludlow here in San Francisco now Twili out with its fourth annual State of Customer Engagement Report this year. The report states that data driven customer engagement does drive revenue growth and resilience for the brands

they lean into. Its relio CEO Jeff Lawson back with us on Bloomberg Technology. Jeff, it's good to see you break that down into Layman's of course, break that down for me into Layman's terms. What are we talking about there? What does any of that actually mean? Companies that bother to pay attention to their customers and to build a relevant relationship and maintain relevance with that customer make more money. I mean, that's the basic Layman's term for it. And

if you think about it, it makes sense. Right in a period of time where people had a lot of money burning a hole in their pocket, right, you didn't have to be very good to go build customer basis

audiences get them to spend that money. But in our current environment, when there's more of a fixed wallet world that we're in, it's the companies that actually pay more attention to their customers and create a relationship with those customers, right, they're tending to win the hearts, minds, and all of

those customers. And we had a you know, in the report, there was a survey of many, many, many companies, and what we found is that the companies that invested most in building those digital relationships engaging with those customers in targeted and relevant ways. So a ninety percent increase in revenue. Now,

think about that. In an environment like this, it makes sense that the companies that do a really good job of using all this very efficient digital technology will understand their customers and build a relationship would actually be doing

better than those that don't. So, Jeff, I'm assuming there as a reason that Tuilio carries out this this research, right, how do you put into practice your findings, put into practice what you preach at Well, what it does is, yeah, what it does is it helps companies to understand the nature of the ROI of these investments. So I love the story of Domino's Pizza. Actually, they have many touches

with their customers, online, offline, et cetera. As you can imagine, they put in a Tuilio segment, the customer data platform, the leading customer data platform the market to go understand

who are these customers? And because of that, they were able to better target their messages and their advertisements to get more customers, and they saw a seven hundred percent increase in the return on ad spend seven right, And so it's those types of things that in this market environment, free company is looking for waves to get more while spending less, and those are the kind of results that

we can return. Jeff, you've just stow the debate that Jackie Lopez, our senior producer on the show, has been having for some time that Domino's is a technology company. I think it's a company. Let's go to AI. Let's go to AI, because right now, how companies are doing that. Think about chatbots, how they engage and I'm talking about enterprise companies of all shapes and sizes. They are launching

GPT or other AI related services. What's Twilio doing in that space, Well, you know, at the leading customer data platform, we have the free party customer data for so many tens of thousands of our customers and that allows us to help them build relevance and personalization into these generative large language model tools that everyone is building. And so if you think about it, like imagine a website, if

the website doesn't know anything about you. Went to Amazon and it didn't know anything about who you are, being a not a very good website. But the fact that Amazon or Google know who you are, impersonalized to who you are makes them great products. Well, I think of you know, you've got the web on one side, you've got mobile over here, and the new world is going to be the results of what these large language models

are able to do. It's a new interface into companies, and those interfaces need to understand who they're talking to customer, and that's what Tulio can provide. Hey, Jeff, let's talk a little bit about the company and you. I think I'm right in saying that you're a founda CEO, right co found a CEO? Your founder shares convert to common stock later in the year, I think in the summer. Mark Benioff's spin on this program Active Vision is a big topic right now. Talk to me about how you

where your head's at with that. Well, look, you know, the conversion of our shares later this year, it doesn't really change anything. I mean, since we went public, we have been very responsive in listening to our investors, understanding, you know, their needs, their motivations, their ideas for the company and having those be reflected in our actions as

a management team. And I think you see that in just last month, we took a number of substantive actions to get the company fit for the current market environment that we're in, to focus on profitability, including gap profitability, and that is all based on feedback that we get from our investors about what kind of company they want to be invested in. And so this doesn't change are the fact that we listen to our investors and they are an important stakeholder, and how we are running the company.

There's also discussions we had around the technology sector right now, the health of it, and San Francisco. I don't want you to roll your eyes at May you've gone there with the debate on remote working. Coming back to the office. Just taught me through the logic behind the system that Twilio has. Why you think that makes for a better company. Well, first of all, let me start up saying I'm a big believer in San Francisco. I'm in San Francisco right now.

This is where I live, this is where our headquarters is, and so I think San Francisco is the greatest town on earth. As far as Twilio goes, we have moved to a distributed work mode and that is both the reality of our works right. We are hiring great people wherever they are in the world. Before the pandemic, about ten to fifteen percent of our employees lived in a place that was not attached to a physical office of Twilio's. Now that number is it's getting close to sixty percent

of our population. So what that means is we are able to tap into the global talent, which a lot of companies did during the pandemic. But now when you say, oh, but you got to come back to the office, well, there's a lot of people who won't be able to go back to the office, and you'll get a first class, second class world that are people in offices and the

people who are remote. Well, Twilio we've said, look, we're gonna just continue leaning into this world of hiring great talent where it is and make them super productive and successful in this distributed world. And you know, someone said something smart to me once that I've always thought about, which is hybrid is the worst of both worlds. You know, hybrid cars, hybrid work, hybrid whatever hybrid's applied to and

I think there's actually some truth to that. Yes, I'd rather have a full gas car or an electric car, but hybrid work, I think it is a similar thing. So we are leaning into this idea that we are a fully distributed company and that our job is to get teams together periodically to build that yes, free decor just build those relationships to get a lot done. But then ultimately where people live is not the most important

factor in how we build a successful company. Wherever the work is happening, you're trying to make your product competitive. You know, there are people I speak to out in the market that look at what some of the telcos are doing around API based messaging platforms, in other words, competitions coming, and I wonder how you respond onto that. Well, look, we're just for injured a competition. There's been APIs for things that we do communications. We didn't invent phone calls

or text messages. We've just had our finger on the pulse of customers better than anyone else. And that's why we're a leader and a creator of this communications platform as a service market. And there have been many other offerings in the market throughout the years, and I think We've always had a really good sense of what customers want, and that's why we've been the winner. All right, Tuilio, CEO Jeff Lawson. Good to catch up, goods talk San

Francisco and tech. Turning now to a note out from Goldman Sack Strategists saying investors should buy US growth stocks with high margins while avoiding low margin growth stocks, even as equity and rates markets are at odds over the likelihood of a recession. If the economy enters a recession, equity market expectations for growth will likely deteriorate. In history suggests investors will be rewards so called quality attributes, including

high margin growth stocks. Now coming up, how spob's collapse might be a symptom of a broader breakdown in the financial machine powering the startup industry. We'll discuss how that's also impacting the European ecosystem and the opportunities in that market. Next, checking back in on those markets. And as that one hundred we talked about it so much, heading for its second best quarter of the decade, A lot of the narrative around the federal was this is Bloomberg. There's still

plenty of opportunity out there. There's growing biotech sector in the United States and Boston, San Francisco, there's still technology companies that are doing well. Many of these tech cuts are because the tech companies overspend or with cheap money, just went into areas they should have never gone into. So I don't believe those are fun the middle cutting

to the core of the two companies. That's just a restructuring to get back to the basics and get back to where they're really ending value and making money rather

than trying to send a man. Look. That was Boston Celtics co owner and Bank Capital Senior revised as Steve Poweruka there saying he still sees a lot of opportunity in tech and that's the conversation that I want to continue with Beyonna Lee, managing partner and chief investment officer over a Verdane, a specialist growth investment firm that partners with tech enabled but sustainable European business four billion dollars in committed capital. Beyonda welcome to the program, you kind

of heard what Steve had to say. They're the opportunities he sees, but those were in US cities. You sit in Oslo looking closely at European tech given macro conditions right now, how healthy is the technology sector from a private markets perspective, Well, it depends on what perspective you're looking at from, of course. I mean we are looking at from sort of fundamental, fundamental perspective, which is, you know, the digitalization and decobanization is eating up an ever larger

share of GMP. And if you want to invest in growth as where you want to be, and for us, they've been doing this for twenty years. Having some of these sort of what we call digital tourists or private market tourists to retract from the market I think creates a healthier and more exciting balance as an investor. So we see fantastic opportunity sets around us, our average, our PORTFOLI we're in the growth segment, right We're not on a sort of VC ecosystem. We're not reading the leveraged

buyout world. We're in the growth ecosystem. And our companies grew have on average grown about twenty percent per year for the last twenty years, returned three point eight times and sixty one percent are and last year it actually grew twenty six percent, So it's healthy underlying growth, structural thematics keep going, and a more sort of healthy, unstable

valuation environment. I think here in the United States we're talking a lot about how than as that one hundred heavy index lots of higher multiple software names is heading for its second best quarter of the decade. There's a lot of discussion in the public markets about tech shares performance in Europe. How are you benchmarking portfolio companies in Europe, European startups against that public sector performance we've seen recently. We've always tried to be quite cautious in our in

our valuations. We've had statistically about eighty percent uplifts from three quarters before exit at Rodin, we've had the same statistics.

We actually are old enough that we've sort of seen this record play a couple of times before, you know, we sort of conquest of the financrist in this sort of period where our benchmarks actually where our valuations actually shaken out, and and it's really that feel that that that sort of very schizophrenic or inconsistent behaviors where you're seeing both I think in European tech stock world and

in the private markets. That is still this period of trying to figure out where the world is really headed. We're not that affected shortcurring in our valuation parameters because we have such such sort of deep discounts to public

markets in our sort of holding values. But but clearly when you're discussing with the founders or they're kind of bootstrapped companies we typically talk to, of course they're looking at those kind of indexes, right, And clearly it was a lot more tricky conversations to do proprietary investments when when the BESI mere intercoed index or the growth was at sixteen times and is now. But I still think those sort of massive durations are still just adding to

the confusion. I think we're going to see another six or twelve months before things things sort of flesh flesh out. But mind you, you know, we have more developers in Europe than the US where we play sort of northwestern Europe is much more digitized economies than the US one and so and much less capital available, so we don't we haven't had the same massive run up in valuations

and therefore there's not quite the same pressure downwards. I would say, well, you know, you think you reflect on how many Northern European and even Eastern European tech talents make their way over San Francisco, where I am. You know, the debate across the Atlantic has been about the impact of the SVB collapse in a tightening of financial conditions.

How did that play out for you in Europe? Was there a material impact to operating cash flow for your portfolio companies and and how has that impacted their kind of outlook for the rest of the year. It was really quite interesting because in in you know, in the US as we be, and being on the West coast,

it's such a sort of pillar of the community. We have seven officers across northwestern Europe's UK, and it's really only the UK that was effected in the meaningful way when we ran a sort of over eighty portfolio companies. Are really the three of them that banked the with this bib SO and none of the none of the regional firms here did So it's in the Europe. It's largely sort of isolated in the UK, where it was

it was important. Um, but I think it's interesting that there's been an explosion adventure that part clear last year more less double look only some sort of into about thirty billion and about a third of all venture money race last year we ventured it. I think that story is going to draw up for many reasons, not the sort of beer learnings, but also the general interest rates

and everything else going on. So I think that sort of reckoning that libits that are reckoning the new reality of new valuations in the private markets has been delayed by the availables of ectual death and that will go down now. Well, I kind of crystallized that for me. You have offices across basically euro denominated markets Mainland Europe, Sterling denominated in the UK, Corona denominated. Where are the opportunities? How do you play that environment when it comes to

investing in private technology companies now? So we basically tried to identify Nichous or Subnichus, you know it could be, but typically areas whether the Nortyes and northwest beer drinking Europe is what we call our results. And basically it's really interesting that, you know, when I remember I moved to the US in ninety seven to do my MBA and I was shocked that it was still cash in news, so check books and news. Sorry, move back from my reunion in ten years lad news to these in cash.

These these very sort of digital environments, which is really interesting. We can use that as a laboratory to build global winners from. And interestingly, you know when you have something a flatter salary structure. Our big companies, for example, easy Park has one and a half million parking transactions to day through the system. We have ten million customers in the US now we know them on the name park. Now when we want to hire a developer, that actually

costomers double in Atlanta compared to Stockholm. So you have this perception that these are high cost economies, but it's actually quite cheap to build technology. But because blue color is quite expensive, the return on deploying technologies very high. So that's often what we see be to being driven sas lative Yes, healthcare, those kind of bond al managing partner, chief investment officer of good catch up, good to see

from US life. Netflix to expand its budding video game service beyond smartphones and tablets and bring it to your TV. App developer Steve Mosa is the one who discovered it, finding some code hidden within Netflix's app that includes references to games played on TV. Netflix launched its gaming effort on iPhones iPads and Android devices back in twenty twenty one, releasing titles like Into the Dead two, Unleashed or Stranger

Things three, The Game, and Card Blast. The idea here is to expand the experience to TV, supplement Netflix's shows and movies, and help retain customers as the company raises subscription prices. Now, the findings in Netflix's app code don't guarantee that the company will follow through with the TV idea, but it does indicate that's what the company has been

turning testing internally. All right, let's go from gaming to the metaverse, because the metaverse dream is not dead, at least that's according to Meta's Nick Clegg, the social media's head of global affairs, took to the metaverse yesterday to cyst that the future of computing will take place on that still not quite yet defined virtual world. That's sorts Bloomberg's Match Taffkin BusinessWeek columnists are they are? They know? I've done a lot of reporting about and cutting back.

Nick Clegg puts a headset on and comes out what they are? What's the latest? Well, I mean it sounds like, first of all, Meta Facebook has put so much money into this thing and it's and as we know, it's it's very important to Mark Zuckerberg. And for all the talk of you know, the Year of Efficiency and all that, this is still Mark Zuckerberg's company. He thinks it's the future, and he thinks it's a way for Facebook meta to own the next big platform. Um, I think, you know,

the jury really very much is still out here. We're seeing all these other big companies pull back on their metaverse ambitions. And when you look at the investment that this company has put in to this new technology in terms of advertising, in terms of research, they are not

seeing much of a return. Here. We're talking about, you know, tens of billions of dollars Super Bowl ads and relatively few users at least when we're talking about the sort of horizon product, which is the product that you know, Zuckerberg thinks is the future. Yeah, all right, Bloomberg's match Chaffkin keeping us up to date with the metaverse, Well, little won't it. We're not going to decide today now.

The weeks after Elon Musk acquired Twitter, hundreds of advertisers pause spending on the platform, where the changes the billionaire might bring. Months later, many of those advertisers still haven't returned, despite efforts by Twitter sales team to woo them back with steep discounts and new safety tools. With the reporting Bloomberg's Iish accounts interesting story. You know, Elon's been kind of public about some of the changes to the platform.

What's less public is how it's been received. What have you learned in your reporting? Yeah, so what we heard. We talked to some of the major advertising agencies, and really the discounts and all that are great, but that's not moving they needed for them. It really is Musk. It's some of his erratic decison making, right. It's the

lack of content moderation on the platform. Right, there's been a resurgence of hate speech, and so it's really those things, Right, what kind of content is their ad going to be next to? That's keeping them off of the platform Twitter structurally, his Mason changes, the platform looks different basically to how it did a year ago. Which parts of that are advertising is worried about. I mean, did they just not

see the value of advertising on it? Yeah, it's part of that, right, Like in although Twitter has had actually more daily active users right from us, right, it's but even still like there's been so much internal change in chaos that it's made it really difficult. So the head of sales they thought was gone, but then he actually wasn't gone. And there's been so many internal changes within the sales organization that advertisers are losing their points of contact.

They don't even know who to contact or talk to anymore about their ads, and so that makes it difficult. So it's really a lot of the internal chaos and organizational changes that make it confusing for them to even know who to talk to. All right, Bloomberg's actually counts terrific reporting. Thank you. That does it for this edition of Bloomberg Technology, don't forget so much to recap across AI,

across social. You can check out the podcast wherever you find your podcast Apple, Spotify, iHeart, or on our Bloomberg channels. One more day to go in this week. The tech sector ending the first quarter on a high and has that one hundred second best quarter of the decade. More to come. This is Bloomberg