From Mahard where Innovation, Money and Power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Luve Love.
I'm Caroline Hyde at work Bloomberg's World headquarters in New York and.
I met love Loo in San Francisco. This is Bloomberg Technology coming.
Up in the next hour.
Alphabet slumps after a report that Samsung has considered replacing Google with Microsoft's being as the default search engine on its devices.
We discussed the impact of the AI.
Race, plus Apple's sales in India. Ramp Up will bring you the details and Bloomberg's exclusive reporting which is two months ago until WWDC and the.
Hashtag Love is Blind Live turn to hashtag lover is late as Netflix was hindered by traffic issues around the popular reality shows Live reunion.
But first, there's just really one story that's making big moves, and that is that New York Times report that Samsung is considering replacing Google Search on its installed devices for Microsoft's being searched. Microsoft moving three tenths percent up to the upside, but look at Alphabet down more than three and a half percent. That puts it on track for its biggest drop since early February. So clearly the market
paying attention to what this potentially would mean. The New York Times article talking about a potential hit to revenue of around three billion dollars for Alphabet, the parent of Google. A lot of detail in that report, but clearly the market paying attention.
Caroline, Yeah, and really we see the money move. We also want to get to the integrity of Mark Berg and whom a police to say is joining us covering all things technology, particularly the world of Alphabet out of London and Mark When you're trying to analyze how important these sorts of narratives are coming from the New York Times reporting and they're like, oh, is it realistic that this could all be down to artificial intelligence in some way? And the way in which they're wrapping them.
I think this is realistic in the way that it comes down to competition. This is the Times report talked about how it's shocking to people inside Google. This is something they didn't expect for a long time. We have this lock on the mobile world right. Android phones are built on Google, they are packaged with Google Search. Samsung for years have been trying its own versions of artificial intelligence services, voice assistant services. They've all kind of failed miserably.
Apple has has Siri, but is stuck with Google on search. And now for the first time, we have this credible idea where a company is saying we're actually going to go to BING, and everyone including the market, is taking it seriously.
Mark As we look at search as a marketplace, I think Google has more than ninety percent of market share globally across platforms based on third party data. But I guess the question at this point is how real is it for Samsung and it's two hundred and sixty million devices shipped last year to just pivot to a completely new preferred search app.
I mean, that would be unprecedented in some ways. You know that is you're certainly gonna have some adoption with consumer. I imagine Samsung listen is going to take this very carefully, right Like, they don't want they obviously want to sell more phones, and they don't want a world in which they ship a device with with BING and they're selling
fewer phones. But this is a lot of leverage here with this deal with Google where they set across the table and Samsung is the biggest hardware partner in the Android world and something that they've been working closely with Google for a long time. The complication here is that you know, Google also provides Android for Free, which is not just search, but it's the play store, right, It's it's all the suite of apps that make.
The Android phone work.
And Google of course has their own Pixel Phone that has struggled to really become anything as serious contender along with Samsung and Apple. But we understand why Google for has been applowing billions of dollars into that for a scenario just precisely like this.
The irony, of course all of this mark is that we all associated really the world of artificial intelligence with Google, the focus on deep mind from very early on the way and from which they've deployed large languid modules and AI vision into many of their use cases. What did you make of Snapitche in particular taking to the airwaves over the weekend and how he spoke perhaps people feeling that they're kind of behind on this race.
Yeah, it was an interesting approach going in sixteen minutes. I mean they're talking at audience. I guess is Middle America is telling the world that we are the message they've been saying for years. So if you listen to any Google earnings call, this has been a consistent we are ahead on AI, and I think that was certainly true.
What I do think what chat GIBD did, and I don't know necessarily there's gonna be a lot of comparisons about the technical prowess, but what they actually came out with a consumer application that people can interact with and companies can interact with. Right like, every startup in the world world is testing out the Church GBT API, something that really they locked into this kind of magic that Google,
despite maybe a technical lead, hasn't really unlocked. That being said, you know, I think that you know, Google's been investing so much in this, it has so many, so many engineers, you can't count them out of this. But certainly, and sort of like the narrative and technology companies as everyone wants to try Chat GBT.
Another part of the New York Times ARSCH call Caroline was the idea that Google is going to bring AI functionality to search. And actually Google did issue me a comment and a statement saying, by the way, we've been using AI in Google Search for years, and they'd believe they've done so in a safe and responsible way, you know, going back to the idea like we've been at this for a while. Anyway, I thought that was interesting.
And Amazon said the same thing, didn't they in Adi Jasse's letter, We've been doing this for decades, by the way, team.
Yeah, exactly, all right, blueblosmart Berg and out of London. Thank you so much with this topic and bringing Rowhit called Carne of Roth Capital Partners. The markets have given a clear response row Hit to this story. Alphabet shares down the most since early fed. What's your reaction to the threat of Microsoft being getting traction in the Samsung smartphone space?
Yeah?
Absolutely, I think thanks for having me. I think for the first time in fifteen years, there is a some serious competitor to Search, to Google. I think that's what the market is telling you. For the last fifteen years, we have never had a real competitor. You never remember, people had Aol, people had Yahoo, people had being Facebook, even troide search. Obviously, Apple tried Search. Every company has tried to be a dominating company in search and hasn't
budged Google at all. Last ninety days, people are questioning that, and that's what we are trying to figure out whether is this a sentiment or perception issue or is this twelve months from now a real fundamental issue. Right now, it is just a sentiment issue.
In my opinion, Caroline, we can go back to the third party data, right, he is always ninety percent of the search market, at least globally.
Yeah, And I think to that point ed, where was accusations last week being made that actually, if Google wasn't so monopolistic in its power, perhaps we'd see further iteration in chatchipt and not being owned just by open Ai.
But row hits speak to that speak to what perhaps the CEOs and the pitch I is trying to make an argument for, is that they've been a a trusted arbiter of this sort of reskilling, retooling, generational shift in technology, and maybe the pace is not being quite so controlled by other competitors.
I think so as an in Google be trust In my opinion, they have the data, they have the consumer behavior, they have the consumer front end to Internet, and they're all that over the years, and they've gone through iterations through mobile, through desktop and various different ways. So, in my opinion, from a stock perspective, I feel Google will come out of this probably unharmed or maybe even stronger.
In the interim. I think Chad GPD it proposes a real, real issue to how kind of search is going to evolve over the next six months. Whether Google is ahead of the curve, We're always going to be a follower, will dictate the stock price in the next six months. I feel Google is going to be following the narrative
that chat GPD is setting out there. That that makes it a little bit harder for Google management to be aggressive, and I feel they need to step in front and come out with more aggressive product launches and open up their AI kimono, if you will, in a way that Chad GPT has done.
Right.
Hey, you've got a one hundred and eight dollars eighty seven cents target?
Is that right on Google buy rating?
How much of what you see in alphabet is the potential that BARD brings the legacy of work in artificial intelligence.
By the way, just to clarify price target as one twenty six, you're.
Right, I apologize one twenty six.
Yeah, all good, I think again. In my opinion, Bard is just one of the several experiments that we will see from Google just to highlight that what you were discussing earlier that look, we have been doing AI AI research and everything that the industry is talking about for the last maybe a decade. CHAD GPT is based on the technology that was created by Google eight years ago. Chad GPD started maybe six years back. So again, Google has been the foundation of global AI research for many,
many years. And I think that's where we'll see more experiments and more consumer use cases unlock over the next for three to six months. And I think Google needs to step their game up in the PR as far as PR is concerned.
Right here called canne Rough Capital Partners than thank you for your quick reaction to that story, Caroline in.
Google would trust quite the key line.
Meanwhile, let's stick with AI ED because or the first wave of academic research applying chatchipt to our world of finance, it's arriving. Two new papers have been published this month alone that deployed chatchipt in market relevant tasks, One in deciphering whether the Federal Reserve statements are hawkish or dubbish, whether they pro interest rate cuts or against them, and the other in determining where the headlines are good or
bad for stocks open AI. Get this said, aced both tests with chatchipt and I think, of course money managers, particularly the quants, have been using large AGORID models for a long time.
But this is about democratization once again, in.
My mind, goes back to that story we were telling last year as well about all of Wall Street hiring talent away from the technology sector, people that could use and interpret the data generated by these tools.
And the point being is to whether or not you can easily trade on these sorts of numbers, whether it means that it all has to be owned by certain well very wealthy hedge funds and quant teams that have the power the money to hire such expensive talent from the technology world, or whether in fact people can start turning to these plugins like a Chatchy Beuta to just well certainly cost saved to a large extent.
And when you have Bank of America's Brian moynihan and JP Morgan's Jamie Diamond talking about AI tends to give it a bit of a momentum, which we will also stick with. On Bloomberg Technology, Let's get straight to Apple.
Shares of the iPhone maker down half percent.
Bloomberg reporting overnight that sales in India reached six billion dollars for the twelve month period through March, which represents a fifty percent sales growth for the same one year period a year earlier. We're learning more, Caroline, about this market India in terms of sales, and we know about the supply chain story. Let's bring up this chart and look at actually the breakdown of Apple sales globally, because
India is not technically broken out this Bloomberg reporting. According to sources, it's lumped in with the rest of Asia Pacific, which is seven percent of sales for the full year twenty twenty two. But it seems like we're growing traction there a market where the high price points have been a difficult one for Apple to crack. But we know that Tim Cook is in that country right now, Caroline.
Yeah, and it's all about this growing middle class willing to spend on those higher price points. It's just talk across the board on all things Apple right now. Bloomberg's alex Web clocking in late for us over in London, just discuss for the first and foremost We've got so much to go through with Apple, but the India focus the fact that they are able to only do supply there but also see the demand there.
Yeah, there are two pieces of this.
Clearly there's part of the de risking of its manufacturing by just trying to pull a little bit out of China, and we should highlight it is really just a little bit. Coincidentally, it's about seven billion dollars in sales. Just a billion, sorry in revenue they generate from products that have made their six billion is what they're doing in sales now. Quite often, when when people talk about India, they say
it's ten years behind China. I mean ten years ago Apple was still doing in excess of twenty five billion dollars in sales in China. So it's got a long way to go to get up to what is now in excess of seventy billion dollars a year in China.
But it is clearly making traction that price sensitivity that Ed talks about, clearly a massive deal lots of people encountering out there, is going to take a long time for them to be able to take a meaningful chunk out of the unit sales at least that Samsung does there.
We know that Tim Cooks on the road has been tweeting pictures of himself in India. Bloomberg had reported that he himself will attend the opening of both the Mumbai and New Deli stores this week. We are waiting for June and WWDC. It's all good focusing on one market, but we're also interested in product and this is supposed to be the biggest WWDC ever.
What are we expecting, Alex.
Well, I don't know about the biggest ever, but it's only the biggest launch for a very long time. We're going to be seeing this new headset. According to you know, our colling Mark German's reporting, this is as we know, this is for developers. Therefore, there's going to be a big emphasis on what is likely to be called xroos that is going to be to their mixed reality headset, what iOS is to iPhones, what mac os is to
Max and MacBooks. There's really going to be a huge effort there to show developers what they can do and so crucially why it's going to be worth their while developing for this platform. Developers are really Apple's edge when it comes to any new product. You know, Facebook, Meta have really struggled to get a good developer base into
their product lineup. If Apple can convince it's developers to make good apps, then it will give the headset when it's released, perhaps later this year, a real leg up in competing with this very much nascent space.
Yeah, Caroline, that's the two debates of the industry. Right much demand is there for high end augmented reality headset? And how much emphasis do they want to put on health when it comes to your smart watch?
Yeah?
And I think, actually, as that's a good point, isn't it. We're looking at this new, bright, shiny object. They're also updating the operating systems of some of their original products. I think are the watch is going to have a bit of a feature there. They've also got new Mac products.
What else can we expect from them?
I think that it does the actual new hardware. We're going to be seeing some new MacBooks. But you're quite right, they're going to be updating the full range of software, so xros, tvOS, mac os, iOS, watch os, all of these things coming with a few more bells and whistles.
We're going to be seeing the Apple you know, self designed chips going into the MacBook Pro range, which will be something new and you know All in all, I think we're probably all those things are going to fade into insignificance given the attention that's going to be given to these new headsets. But there'll be lots of fun tools for developers to play with.
All right.
Thanks to Bloomberg, x Alix Web who line for a long time, is out here in San Francisco. He knows this company inside out just as well as Mark German.
We're grateful to have him.
All right, coming up the highly anticipated SpaceX starship. It's been put on hold. We'll tell you what happened next, Caroline.
Yeah, and let's just for a moment take a beat as we look at some incredible shots of what could have been today as what actually.
Is going on in the market right here, right now.
We had some strongly economic data, particularly coming out in New York that hits sentiment.
We see, of course good news being bad news for techtocs were up by four tenths of percent. This has Bloomberg. Oh, and also a comment on where.
Only you should be putting your money to work from some experts as well.
Cities Wealth Cio had this to say, So, companies.
That have moted around them, you know, different technology companies and other industries where you can see both margin growth and revenue growth should be rewarded.
It's time now for talking tech. Enil Musk.
Well, he's incorporated a new entity called Xai.
It's all calling to Nevada State documents. Now.
While the documents don't list the company's purpose, Sarama speculating that these efforts could be.
Part of a larger project to rival the.
Likes of companies like open Ai, which, of course Musk, having initially helped found, is now frequently criticized and in other Musk news. Yes there's more, but SpaceX it's postponed the launch of its massive Starship rocket that was set to lift off earlier today. Now the company and CEO, of course, El Musk, confirmed there was a pressurization issue minutes before the launch.
It all right, let's stick with the big story, and we're joined by Bloomberg News is Space reporter Lauren Grusse, who is out there on South Padre Island in Texas. We know why there was a pause, a delay, a scrub. Will we see starship launch this week?
You know that is all variable and honestly, this is just the name of the game. When it comes to covering rockets, especially the first launch of a brand new rocket like Starship.
You know there are going to be scrubs. In fact, if it.
Had gone off today, I would have been shocked, because that is just how these things go when you're testing a brand new rocket.
Will we see it go this week?
I really hope so, because I'm staying in South Padre.
But you know, if I'm going to be stuck in.
Any place, there are worst places to be stuck, Lauren.
I mean, already we have from Ilol Musk trying to put perhaps a positive spin on it, seeming pretty optimistic. But I mean it also might align with one of his favorite days.
Right, Yes, so.
There is a possibility that we could launch on April twentieth. You know, there are certain things associated with a date. I won't go into them, but yes, I think it would definitely please Elon Musk if we did launch on that date.
Right, This is significant, Caroline, Right, Starship sixteen point seven million pounds of thrust. That's double what Satin five was capable of doing in the seventeenth This is a milestone, not just for the industry, Lauren, but for mankind.
Why, though, is it a milestone.
Well, if you think about it, I mean, the reason that Elon Musk founded SpaceX to begin with was to start a human settlement on Mars. And you know, I spoke with analysts, you know, leading up to this. It really has all come down to this. This is the vehicle that they will eventually use to send people to deep space.
Like the Moon and Mars.
And the only way that they can make that dream for reality is if they prove that Starship can actually launch to space. So there's still an extremely long road ahead for before anybody is taking any steps on any other worldly surfaces from Starship.
But the point is they have to show.
That it can reach space and it can reach near orbital speeds and actually get into orbit before we have any chance of seeing this dream become a reality.
And if it does happen, Lauren, very briefly, what do we expect.
To actually happen.
You mean from this launch in general?
Yeah, So this line, which is really just proving out the basics. They just want to show that super heavy, that giant booster that is used to actually send Starship into orbit, that it can actually fly, that the two pieces can separate what's called stage separation, and that starship can actually get to near orbital speeds. It won't be doing a full orbit, it'll actually be coming down off the coast of Hawaii, but it will be getting pretty close to orbit and orbital speeds, and it'll be getting
into space. So those are the main things that they really want to test. Can it survive max Q, which is the point where all these pressures are on the rocket and it undergoes the amount of most intense forces. Can that stage separation happen, Can it reach space?
And can it get to the orbit?
Wow, well, we hope it happens.
For you who's going to be stuck out there for a few days. You appreciate you bringing the times, Lauren Grush, all things space mean, while all things crypto coming uphead Bitcoin is the being below thirty thousand. We'll talk about why is it fundamentals more, the macro picture fractal co CEO is going to be joining us Aya Cantorovic. That's next and that's a Bloomberg Welcome back to you, Bluemog Technology. I'm Caroline Hide in New York and.
I'm medal of Low in San Francisco. Caroline, we check the markets. Take a look at where we are, particularly inequities, and now's that one hundred softer by around seven tenths of one percent. This is a market that's on track for a decline in April. I'm conscious that we still have a few days left to go. The debate about what the FED is or is not going to do kind of weighing heavy outperformance in the US listed shares of Chinese technology companies. You see the Golden Dragon index
up two point eight percent. A big part of that some of the even news out of that market, overnight ten year yield pushing higher eight basis points or so to three zero point five to nine percent. We're also, i think, as you put it, Caroline, seeing some of the wind out of the sales of crypto. I'm looking at Bitcoin and Ether as an example. In this session both softer, Bitcoin off by three percent, back below thirty
thousand US dollars per token. Still mix debate out there, a lot of long term balls and still some momentum in the near term based on what we're seeing in macro conditions when it comes to rates, but also some feel good about the underlying technology.
Yeah, and also what's happening in the banking sector, whether it was seen of some sort of stability amid or some concerns around the banking well overall financial conditions that we were seeing. Let's dig into all of these pushes and pulls. I'm pleased to say that Aya Kanderovich is with us. She is the co found and co CEO
of Fractal. It's an infrastructure provider for institutional crypto trading on chain and also has just announced six million dollar seed rays with a financing round led by hack BC.
So congrats, we've got some money in the bank. AIA. Just paint the picture right now.
Yes, we're a little bit weaker on the day, but look at the run and Bitcoin up what eighty percent so far here to date? Eth as well, with a successful upgrade, are we seeing more not only retell, but maybe institutional investment confident.
Is coming back?
Sure, So I'll actually start with Ethereum. So to your point, you mentioned that we had the Chappella update happened on April twelfth of last week that allowed for two different things, both to finally move to proof of work from proof of steak and then also for Ethereum to be able to unstake itself and create liquidity in the markets. And so really what that does is three different pushes in momentum that we expect to continue as well across institutions
and other users. So, for example, the first piece is actually very interesting. If you look at what happened with institutional investors in the last update six months ago, you actually saw that institutional investors were buying the rumor and then selling the news, and so you saw the price
run up and then immediately drop afterwards. Differently, in this run up, what you saw was actually the opposite, So you had a lot of institutional investors who were shorting ethereum and then on April twelve they had to close their shores and therefore by the underlying asset, and that
really led into the momentum of the price up. The second is also the latent demand that's just sitting on the sidelines, you know, that was looking to see whether or not there would be any glitches in ETH and the update in order to then pile into the asset class, which we then proceeded to see. I will agree with you that in terms of the users specifically, it's definitely
more crypto natives. But then comes that last piece which is really interesting, which is there was a lot of negative sentiment with on chain data around this huge cell pressure once you could unstake the ethereum, and if you look at the data, it actually shows that less than ten percent of the eth that's been staked is looking is in the queue to unstake, and of that ten percent majority is actually just the rewards that have been earned since ethereum was staked. So it's very very positive.
And on Friday you saw more eth that was staked than withdrawn.
And many had thought a lot of these people were long term holders, perhaps were underwater anyway from when they first got a stake here or would stay way. But to your point of institutions or in general cryptoplayers native wanting to short, wanting to perhaps use derivatives to perhaps prepare themselves for this upgrade, What is liquidity like? What is the vacuum like for derivatives at the moment post FTX.
Yeah, that's a great question.
The honest answers is the liquidity is definitely much drier, which also leads to why you see these momentum driven events happen because there's less liquidity in the market and realistically, what's going to happen is two years ago we actually saw the pendulum swing where markets used to be driven by Asia based investors and that moved to US based investors. Now we're actually seeing the opposite, where a lot of the markets are being driven by you Asia based investors
again and Asia based exchanges. And you'll likely see that happen until the pendulum swings back to.
The US.
Tracking them at price momentum, spot price, use of options. It is just one data set. What caught my eye, particularly in the back end of March, is the flows of money into various products tied to crypto. What do you take away from that? You know, what is leading the market to put money into these instruments at this time?
Sure so interestingly, on March tenth, when a SVB filed for bankruptcy, Bitcoin's price from that specific date is up
over fifty percent. And I think it really really focused in on and reiterated the reason for bitcoin, also the narrative around bitcoin being a safe haven, but also when bitcoin was originally created in two thousand and nine following the two thousand and eight financial crisis, and so you'll likely see there's always a delayed reaction of money moving into investment products globally for digital assets following any instability
in financial markets. But you'll likely continue to see that happen.
Through your end.
What's interesting as you come on having just done a seed round, having successfully put out an offering their infrastructure offering out that institutional clients, clearly seeing that people want a different kind of transparency post FDx. But well, you are based in Switzerland. You are now in between New
York and Switzerland. What about the regulatory environment. You're just saying how more of the flows are coming or being done out of Asia and most of the companies being founded wanting to go to Asia because of the regulation here in the US.
It's a good question, and I would say yes and no. I think specifically, especially for US as a startup, the jurisdictions were very excited about as you mentioned Switzerland as well as Singapore, Japan, Hong Kong, UK and other European jurisdictions. In the US, actually, specifically we're excited for US regulators to move from regulation through enforcement to regulation through collaboration.
Even if you look.
At last Friday with the Stable Coin Act that came out, you know, a lot of that that was a bipartisan agreement with heavy, heavy influence from Circle and so it's exciting to see those things come into play, and that's definitely something we're going to keep an eye out for, specifically to fractal though. What I would say is we don't fall under the DeFi or decentralized finance definition. We're
very much focused on on chain finance. I'm really just using the blockchain to create lower costs and more efficient infrastructure.
It's interesting, ed.
That we've talked a lot about the bitcoin run ups, but many have pointed to some of the old coins not being caught up in that rally, and some saying even the decentralized exchanges that done phenomenally well in terms of volumes, maybe some of their tokens haven't done as well as might have been expected of late.
Yeah, And the other conversation we've had ia is from Eightpril twelve, the momentum that either is or isn't there in backing the underlying technology. You know, you are a founder and running your own business. How do you view the health of your company right now, the ability to raise funds, that of your peers as well.
Yeah, that's a great question, and I would really specify a lot of these tokens or utility tokens, so it's really reflective of the usage of the application. To Caroline's point, obviously you're not always seeing that one to one that said, Fractal doesn't have a token and we don't intend to
anytime soon. And the investment ecosystem, I mean, we were able to close around three weeks with a term sheet given out the week after FTX collapsed, and so really strong momentum there, and I think you're continuing to see a lot of momentum for founders who have seen the ecosystem, have been in crypto for a while and continue to put their heads down and keep building.
Fractal co founder and co CEO Ayakontorovich, thank you so much. Meanwhile, it's Earth Week here on Earth, and we're looking at the innovative ways that technology is taking charge to be more energy efficient. When it comes to electric cars, ev makers of finding new ways to build sleeker, more cost effective systems that utilize the power of the sun.
Bloomberg Green has.
The story, are solar cars the next ev evolution? Decades of work on a solar car Moonshot is slow in ceding to a more pragmatic approach, Smaller, lighter, cheaper systems built to subtly augment electric driving rather than power a
road trip in full. The sun is hard to with as it never stops showing up, and with the market now rife with electric vehicles, there is an auto ecosystem increasingly wired for electrons, including a charging infrastructure that on car solar systems would no longer have to do all the heavy lifting. As far as cost, solar panels have steadily become both cheaper and more efficient. Over the past decade.
The price of solar modules per WAT of power produced plunged by seventy eight percent to roughly twenty four cents per WAT, according to Bloomberg and E. E.
App.
At that rate, a panel array the size of a sedan has dropped from two hundred and twenty two dollars to just under fifty dollars. Currently, Toyota sells a solar roof as an option on its Preus Hybrid. At Hyundai. Meanwhile, a solar roof option is available for its Sonata Sedan, and the company is drawing up plans to add solar panels to the Ionic five, its breakout ev and what about Tesla. Elon Musk has stated he believed the car is one of the least efficient places to put solar.
That's the Tesla is pursuing an option for its cyber truck owners to add solar integrated into the cover of the pickup bed and possibly as unfolding wings.
The sun hard to ignore.
Time now for our VC roundup and insect farming startup. Insect spelt with a Y just closed a one hundred and seventy five million dollar financing round as it expands globally and looks to shift away from animal feed like mealworms fed to fish to high margin pet food. Meanwhile, a Berlin based Razor Group has raised eighty eight million dollars in Series C funding round, bringing its valuation just as watch as one point two billion dollars. It's all
according to tech Crunch, citing sources. It's also acquired its competitor Strives Group as part of a consolidation move.
Now let's get to what else we're hearing from our.
VC guest so late when they see opportunities on the horizon, Take.
Listen, I recognize tricky environment right now, not one where I'd recommend folks go, you know, running out there to try to raise around.
The reality is to technology reach the point right now that you actually don't need the same amount of capital you needed before, and.
Optimism is coming back to see it. In early stage, we are hiring, So.
What we're seeing is a new area of our opportunities for new founders to come and change the industries that matter.
Everything was happening through cryptos web three.
It was bock Chane, it was everything that has now shifted over to AI.
AI has made the business of threat detection, incident response a lot more automated AI.
That's definitely an area where we're seeing a lot of green shoots.
Springing today's guests for his take on the future investing opportunities, private markets, everything VC so much. DASH is a general partner over IVP eight point seven billion dollars in committed capital. AI is quite clearly top of mind for your is is it tope of mind? Via Absolutely and thanks for having me.
AI I believe will be the third largest compute revolution that we've seen in our generation. We're going to see from internet to mobile to now AI the kinds of transformational shifts that happen once in a generation.
We're seeing a play out.
Actually right now in real time. I heard your segment earlier today. If you think about the newsday from Samsung, think about the dollars at steak with the dominance of search as it relates to AI. Three billion dollars for Samsung. The big fish, of course is coming up in the next sixty days with Apple and Google. That's eighteen to twenty billion dollars a year to basically be able to
get the search results. The question is if Apple and Microsoft start partnering together, that's a two point six trillion dollar company, a two point three trillion dollar company. This is really going to be the future of the next decade in technology.
Tell me where also feels like it's the future. Samash is regulating it to interesting out of Europe at the moment. Many had thought that they would be looking at high risk AI applications when they were crafting their new regulation. Now people looking for it to go into general purpose AI as well. What are you thinking about the regulatory landscape and building into it.
Well, I think it's a great question.
I think it's really important to have a balance where we need regulations to make sure that the application layer of AI is used for societal good. I'm a huge fan of making sure that the government authorities work closely with the industry, whether it's large public companies or startups. I also think it's important for potentially thinking about new regulatory bodies that could actually enforce this in a way
that's different from traditional internet software and mobile enforcement. I think the real question will be does this actually spur a new generation of mergers and acquisitions for startups and public companies or will it slow it down as we saw happen in the consumer sector over the last five to ten years.
Ooh, bit oft MNA and how it'll drive that ed.
But really, the amount of pitches we get just from founders and vcs wanting to come in and talk this ecosystem at the moment is phenomenal.
Every single person works in AI now, so it begs the question, how do you play the field? I mean, am I right in saying you must get dozens of pitch decks across your desk every day?
I'd say dozens are an understatement. If you look across the firm, we're getting more than that. I think the most important thing to remember is these are early innings, so what we're actually seeing is the first set of companies that are coming out. It reminds me of geocites and lycos in the early days of the web. We haven't seen the Google equivalents emerge yet. The difference, though, is the pace at which things are happening. Chat GPT got to.
One hundred million users in two months.
It took Facebook four years, Snapchat three years, Instagram two years to get to one hundred million users. GPT four feels like old news. It's less than a month out since its general release, and what we're going to see is some of these applications, there's a model on which chat gpt could keep to a billion users within twelve to twenty four months.
The big headline that Caroline and I've been discussing of late is the Pentagon and leaks. Discord had a role to play in that, and I believe you were an investor in Discord.
Absolutely we are. Yes, what do you make of that story?
I think it's really interesting because I see you all across Silicon Valley, New York, London. VC's putting a lot of money into defense related startups, but in this case, this is a social media platform.
Right, this call at the heart of this story. So, first of all, what happened was horrible.
I mean the fact that now that there's been an arrest, it's been out in the public that this was a member of the US military who basically took classified documents and shared them on a private chat room, a private server. What ended up happening, of course, though, was they violated two things. They actually shared illegal classified documentations against the law. They broke the law, and they actually violated Discords terms
of service. So when Discord detected this, they work closely with the federal authorities with the Deal to be able to actually stop this. And now that arrest has been made and more evidence has come to light, it shows the importance of platforms to actually utilize larger trust and safety teams. To tie this back to the previous conversation though, this is where I think AI has an even bigger role. AI can actually replace human curation and actually enforce not
just keywords and triggers, but also context. We're in the future, not just words, but images can also be flagged faster that could prevent this sort of abuse and legal activity from happening.
In the future.
Interestingly some aster course, when we think about Discord, it was really one of those companies we're expecting to soon enough exit along with a lot of other key companies.
What do you think about these trajectories at the moment?
These you've talked about M and A in certain areas of AI, but what about exit roots to something like a discord.
Well, I think for a lot of private companies, now this is really a period about investing in the future. What's exciting is AI actually presents an opportunity to rethink your business. It can actually be a huge accelerant, as we're seeing with Discord.
Discords work closely.
If you think about the biggest AI communities right now, mid Journey and chat GPT open Ai both are actually on Discord. And if you think about some of the products the Discord itself has introduced, the most exciting for me was one recently that actually creates a summary tool that summarizes.
All the servers the users, so lea.
If you've left a forum and you want to come back and get a quick, fast summary what you missed, you have AI as a tool to be able to do that. My own sense though, is that many of these companies are getting stronger, not weaker, because they're investing in intellectual property R and D, and in the coming years these will actually be really big outcomes for Silicon Valley.
IVP General Potter, So, Mush, Josh, thank you so much for joining us, Thank you for having me.
Ca Yeah, coming up so much more to discuss and actually about platforms. About Netflix, how it failed to go live for a special episode of one of its most popular shows. What the streaming service is saying to the thousands of disappointed well Love watches stay tuned for that.
Let's get a look at Netflix shares just.
After Currently that disappointment used to be impact the share market capitalization.
Two we're off by more than two percent.
Listen, Bloomberg, don't turn the channel, don't stream something else, don't go to the bathroom.
We're coming for you.
We're coming for you.
All right, guys, show what we got.
Stick around, Nick and Vanessa Leche trying to reassure Netflix viewers as Love appeared to be late the live feed for its popular Love is Blind reunion.
Well, the special was delayed by.
Over an hourly a frenzy of complaints from fans on social media. It's Netflix's first streaming event, Mega One, that fans would be able to help pick questions as to.
The show's cast.
Wimburg's Felix Gillett joins us now and oh, I mean this was just a bit of a failure for Netflix's iteration into these live stream events.
Yeah, huge disaster for Netflix. I mean, they, you know, made a big deal about we're going to do more live events. This is part of their big push into advertising. You need more live programming. They're kind of dipping their toes and they did the Chris Rock special last month. This is their second big live stream event. For it to fail not only signals of viewers, like you know, it's disappointing right now, but also all the media watchers,
everyone that's thinking about buying advertising sports leagues. Do you trust Netflix to live stream games in the future? You know, this is not a great start.
We'll we'll get a full opportunity carry for a post mortem because Netflix has earnings in twenty four hours time or so. One of the worst performers on the s and P five hundred. Felix, what if Netflix had to say I think they issued an apology, didn't they.
They apologized, you know, they said, stick around, we're going to tape the show. There was a lot audience, so they said, okay, we'll do the reunion. We'll tape it and then we'll put it up tomorrow. So at some point today, presumably fans are going to get.
To watch this.
I think it's less of a problem with the fans and just a broader problem for Netflix when they've made such a big deal about Okay, we're doing this big advertising initiative and we're really going to start ramping up our live program in this is just not what you want to see getting out of the gate.
Netflix with their tweets, AOC and other lawmakers weighing in to what was really a moment of culture but it kind of failed.
Well, thank you so much, Felix Jellette.
What a fascinating story apparently should get seamstress in.
But that was all things Netflix.
Now, that was all things Bloomberg technology done for this particular.
Editionet Yeah, Frantic starts the week A lots of recaps, So don't forget to check out our podcast wherever you get your podcasts on the terminal on Bloomberg, but also on Apple, Spotify, and iHeart New York from San Francisco Monday Funday, Long way to go.
This is Bloomberg.
H