Bloomberg's Caroline Hyde and Ed Ludlow discuss Amazon putting construction of its second headquarters on hold following its biggest ever job cuts. Plus, a look at Apple's executive exodus with the person in charge of iCloud, iMessage and FaceTime now leaving too.
I'm Caroline High and I'm ad Love though, both of us in San Francisco. The final time this week, Busy Friday. This is Bloomberg Technology. The markets risk on Friday, the headlines flying left right in center, and I'll tell you there's one asset class that is not risk on today too. We'll dig into all of that. First coming up, Amazon puts construction of its second headquarters on hold following its biggest ever job cuts, and Apple's executive exodus continues. This time is the person in charge of I Cloud, I Message and FaceTime and Silvergate's struggle for survival. It's weighing on overall crypto sentiment. Bloomberg breaking the story that constructions being paused Carrow in Virginia on HQU two. That second phase of construction the three twenty two story towers really interesting. Let's get into the d Tell the person who broke the story one, Matt Day is with us, and just talk to us, Matt about the importance of this second phase of the construction, because it's actually the bigger part of the construction. Right, Yeah, that's right. They're just now wrapping up the construction of two twenty two story towers. That's the first phase. It's basically done. Amazon moves their eight thousand workers in the area into those fieldities this spring and summer. What's a issue here is a much larger three twenty two story towers. It's the part of the complex. It's going to have the helix, the sort of spiral poopamoji shaped building that's going to have a bunch of plants in it, big conference center, the centerpiece architecturally of the campus that Amazon hopes to build. All that's on pause right now, no digging for the foreseable future. Hey, Matt, I know that last April this was approved and sources of telling us that Amazon was ready to pull the trigger. They held off. They then considered getting shovels in the ground to start the year. What did Amazon tell you about this decision? Why they decided to hit the brakes? So they said some of the obvious things you'd think, you know, like listen, we're not sure what kind of hiring we're going to be doing in the next couple of years. They've had a hiring freezon since late last year. We don't know when that lifts. And there's also just a different vibe around Amazon today. Than there was when they announced this campus in the first place. You know, back then they were growing billiaps and bounds. They'd run out of space in Seattle. They were searching for really anywhere to put people all across the country. So twenty five thousand was not so ambitious a target then. It looks a lot more ambitious today. Just looking at pictures of that poop emojie as you called it, I thought it was a helix. I think we hadn't heard it called that officially yet, Matt, talk to us though about you know, the serious nature of this is that Arlington, Virginia is going to be worried. In particular, they think of the tax breaks well eight hundred million dollars worth given to Amazon to lure them to bring in what twenty five thousand workers, that's right. But the good news for Arlington anyways, they haven't handed anything over yet. You know, some of the tax breakes related to hotel occupancy fees I would get sent Amazon's way, But a lot of them were just job related, Like once they started put butts and seats and they hit certain targets, you know, then they'd get tax breaks on on the payroll taxes there, so that that money hasn't started changing hands yet. That's the good news for Arlington is if Amazon says they're committed to it, they still think that they're getting a pretty good deal winning if Amazon does complete the campus as they've planned. Bloomberg's Matt Day reporting out of Seattle. Good stuff, Thank you so much. Let's branch out a little bit and talk about tech more broadly. Denny Fish, portfolio manager at Janie Henderson, managing four billion dollars across funds in the tech space, leading technology research. It's interesting, Denny. I won't put you on the spot when it comes to Amazon specifically. I know you hold that stock in your funds, But as an example, Amazon kind of hitting the brakes on the real estate side, having already worked on the layoff side. What is that telling you about about the technology set right now? The prudence that it's kind of going through, well, it's it's definitely different than it was twelve months ago in terms of the general philosophy for the background, both in terms of in Amazon's case specifically, it's a company that overhired during the pandemic, put a lot of capital to work and logistics and fulfillment. You know, we're just talking about, you know, the headquarters being put on pause. And the challenge for Amazon is twofold. You have this highly profitable growth business, Amazon Web Services that's starting to slow. But more importantly for them, they're really a physical business with a digital front end. And as a result, there's only one way to get out of that situation when you overinvest, and you either have to significantly reduce your footprint, which is really hard for them to do because of the nature of what fulfillment and logistics represents. So they have to grow out of it, and they have to get efficiencies on a unit profitability basis, and that's what the company is grinding through right now. And then when you exacerbate that with a tough economic environment, it just makes it that much harder and that much longer to recoup and start to actually drive some leverage out of those investments that they've made. The other story of the week has been earnings, and I think about names like Dell and then contrast that with Broad Common. We're getting kind of really make signals about demand from corporate America, global corporates and the consumer kind of what's your tea leaves read of this week and what we're seeing from tech. You know, I would say broadly the entire earning season if we wanted to unpack that, and this was just a continuation of that, and that is that if we look across sectors, you know, semiconductors are always the leading indicators for global economic growth or global economic slowdowns, and we've seen a material slowdown there, most companies lowering expectations pretty materially for the year. But nonetheless the stocks have actually been responding all right, which is really encouraging because semiconductors are the first ones to actually start to discount the upturn as well when they're incredible businesses with great industry structure, but nonetheless that's where we're at, and they're highly economically sensitive. And then you have kind of the secular growth stories and software and internet and other sectors where things are still growing, but they're just not growing nearly as fast as the economy starts to take hold as well as there was just so much capital that came into the space over you know, a five to seven year period, and the market's really starting to discern now within these names on the unit economics, and you know, companies that have really good, strong, durable competitive positions, really durable unit economics, and those are the companies that are likely to perform as we get to the other side of this, you know, economic situation that we're in right now and strong balance sheets. And I just want to bring this particular point that was really driven home by g Sam a little bit earlier. Just take you listen to any tech is getting grouped in with growth quote unquote if you will. But there's a lot of quality. There's good balance sheet, there's a lot of cash, there's the ability to still do m and a strong activities. And so again we're really focused on there are some strong, solid micro stories and it's less hey, let's buy the index. All people sort of throwing babies out with bath waters, to use that awful phrase, but ultimately people tying everything up. Some great big babies in there. You're throwing those out? Yeah? Or have we now discerned that Microsoft, which I think is your largest holding, some other companies are of a different beast and actually perhaps don't see them as growth stocks in the way they used to. Well, I think it's twofold. There are a couple of dynamics that are going on. If we just think about what I call the gigacaps. Okay, so kind of think about feng Ma. You know, broadly speaking, we have started to see a lot more discernment in terms of the multiples we've seen where you know, Google's traded much lower in terms of its you know, expected earnings multiple. Microsoft and Apple have continued to hold their multiples, I think, just given the confidence in those business models over the longer term, and all of these companies are getting a lot more competitive with each other. You know, if we just think about the idea of AI and what we've seen with open AI and chat GPT and the potential implications to Google search business. But that's all upside for Microsoft, and so the market's trying to figure out what this is going to mean over the longer term. And then, yeah, I would say twenty twenty two, we just kind of threw everything out, you know it with the bathwater, and then early this year we've had this risk on rally, not you know, the last week and a half or so, which has been a little choppier, but coming into this year now like it's it's one of those classic early cycle potential rallies. I don't know if it's a bear market rally. I don't know if it's an early cycle rally, but it feels more like an early cycle rally because everything then rises and then what usually happens is you get six or nine months down the road. It's the companies that have the real financial performance that really start shining through, and that's where you start to generate your returns over a multi year basis. And tech Okay, you mentioned Chat Pizza, and one of the key megacaps that has outperformed so far this year is in Nvidia. I know it's holding of uls. All you making bets now on who is best place in the artificial intelligence race right now? Yeah, we are. You know, obviously, as you mentioned, Invidia's an obvious one for the moment because the fact of the matter is you can't deploy GPT without a ton of GPUs, right, I mean, it's just like that's that's what it is. And now is that going to persist? You know, there's still the opportunity for companies to develop application specific processors that might be more efficient for certain types of models. So that's a risk. One of the most amazing parts of Nvidia's growth story over many years has been Kuda. It's software platform for developers that makes it easier to program against GPUs and sort of has allowed it to win the race. Is that going to be a competitive advantage in a world of generative AI and large, large language models. We're not quite sure on that, but for now there's probably no cleaner play than than in video. But as you start thinking across the ecosystem, you know, it's interesting. We just mentioned Microsoft for example. Anything they do with being is all upside, you know, And could they can potentially displace Google as the default on iOS? Could they What do you think they potentially could? It's clearly in their ambition and all things equal, Um, if you're Apple, you just want to provide a consistent user experience and you want to extract as much economic value as you can GPT GPU. I'll hit you in another acronym that Karen and I have been hearing every day. Fomo. That was comes you by me is what we're seeing in the market broadly. Fomo. You know, C three AI is a name another third percent today based on fundamentals, I think I think not, No, it's not and and so fomo is driving you know, so when I talked about that classic so we have two things. We've kind of had that classic early cycle behavior in terms of the market, and then we also have you know, the thematic artificial intelligent. It's kind of you know, investing environment and institution and retail investors get behind and it's easy to kind of throw some capital at some names like that. But and so the reality is like that is a lot of FOMO, right because the fundamentals haven't changed that much. There aren't a lot of pure ways to actually play artificial intelligence, and it's really going to be more of what can actually enhance the value of an existing business um, you know, where companies are well positioned on the infrastructure side to you know benefit from you know, the massive buildouts that we're going to actually have to see to support this. And and but we're also going to see a ton we always see this, a ton of speculation around the edges and sort of maybe some of the less proven. But you know, a company that has AI and it's you know, yeah, exactly, well let's go from AI to VR because ED was helping break great scoops on Meta today and ultimately this company is having to cut prices of its pretty expensive virtual reality headsets. That still there's a lot of hope, a lot of hype, perhaps not in the purchasing that many had anticipated, but you've been adding to your meta position. What was another back of that, Yeah, so it's it's it's interesting. It's not because of ARVR, to be clear. Yeah, yeah, it's not the metaver you know. The metaverse is like, it's this thing we've been talking about for many, many years, and it's going to evolve more slowly, right because you're gonna have a bunch of different metaverses, consumer, enterprise, different use cases. What's interesting about meta one is the stock got too darn cheap. Okay, the expectation was, you know, they had to do something to repair their stock price and get aggressive with their cost structure, and they did so that was part of the thesis. But there's another part of the thesis too, and that is about eighteen months ago, Apple effectively exercised its market power and you had two things you hadda yeah, yeah, yeah exactly, or reduced ad tracking right with IDFA and ATT and oh they're they're two more and that really hurt meta. It really inhibited their ability to drive return on AD spend because they lost the ability to retarget and measure consumers across the broader Internet. Now what's interesting is they are one of the largest buyers of GPUs right now on the planet. They're rear connecting their data centers and the reason they're doing it is they're all in on AI to drive better AD measurement. To the extent they're able to do that, they might actually widen their competitive advantage over time. And it's kind of like a maybe not quite as obvious way to think about a company that could benefit from AI, given how bad it's been hurt by Apples so far. Love that thesis. Come back, Denny. It's been a joy to actually here's that next to you up San Francisco. But hope you come back into the office. We thank you for making a special trip to Sidney. Jannis Henderson, portfolio manager, Denny Quish coming up another key Apple executive, just talking about that company. When they're leaving the company, will discuss why this has Bloomberg, the executive in charge of Apple's I Cloud, I message and FaceTime infrastructure, is leaving the company, according to sources, after five years in the role. Michael Abbott is stepping down as the company's cloud chief next month. It adds to the revolving door of executives at the company. Bloomberg Senior technology editor Nigg Turner is here with us the revolving door. I think that's part of the story, isn't it. Yes. I mean, you know, it's not necessarily uncommon around the end of the year for certain number of Apple executives to leave. It feels like more than normal this year, especially between now and like the sort of the last few months of the year, you've had a lot of sort of VP level people in charge of everything from kind of industrial design, the chief privacy officer to the head of the website, you know, depart resart. So April is the time that he's going to be particularly leaving. Michael about nuts in large part because of when it shares best right. I'm interested though, on whether they're filling these roles that swichly in some cases, and in this case, they are having someone take over his duties, which is Jeff Robin, who's the guy who invented iTunes. So that's not a bad flax claim nice, you know. So in some other cases they're basically divvying up duties and giving them other people. There's not really going to be a chief privacy officer the way there was before, for instance, the industrial design person. They essentially giving those duties to different people, which is pretty big deal because that used to be Johnny I and right, you know the heart of Apple more real quick, We've only got about thirty seconds. But the serious thing is that services is important, right, well, so everything cloud related. That's been huge for them. I think there's been a bit attention over the years in terms of how much they rely on like Amazon and Google to do cloud versus doing it themselves. And so maybe that's something the new person will have to sort of sort out too, but they do basically a mix at the moment. Nick, fascinating, great story coming from Mark German and Nick turn a key team pays. We thank you so much for coming on explaining it all time. Now for talking tech, let's start with AI artificial intelligence startup Inflection AI seeking to raise as much as six hundred and seventy five million dollars that according to the Financial Times, citing sources. That's the company Carrow, founded by Mustapha Sulliman, one of Deep Minds founders, as well as LinkedIn creator Reid Hoffman, speaking of which Reid Hoffman has announced he'll step back from the Open Ai board and citing greater transparency because Graylock his firm is increasingly investing in companies using open ais APIs, Hoffman says this cou cause a conflict of interest. He's been a personal investor through his charities and on the board of open Ai since twenty fifteen. And finally, don't miss this one, Gwyneth Paltrow Kinship Ventures raising seventy five million dollars for its debut fund Axios reporting without citing where it got the information, act says the firm is looking to invest in early stage consumer goods and technology companies. Very on brand for one gwyn Poutrow Caroline, and interesting that she's doing it in line with Mujera we understand as well. Now MOS was coming from Beauty Khan and really focusing on the beauty side of investment, but also luckily having interacted a plenty with Mos in the previous times through women's networks, I know how focus she is on ensuring that women that diverse leadership and indeed people get a seat at the cap Table are able to invest in fast growing companies. So this is an interesting area that of course herself, Gwyneth paltrowa business lady Goop no Lesque getting into and also she moved on from acting to be an entrepreneur. And I think the idea is very much like, I've got some money to play with here to support entrepreneurs that I see myself. I'm, you know, Avench capitalists finding like minded people, similarly experienced people. Speaking of Avench capital I think we've got to go back to read Hoffman. This is really interesting. The basics are we are investing in all sorts of AI related startups. Those AI related startups are using GPT three point five. I can't be on the board anymore. That is a big piece of industry news, given everything that's happened so far this year. Yeah, I really think that we've been interviewing the likes of Neiva, for example, which in some ways as a competitor to the likes of open Ai by not only having a search engine that's built around these sort of large language models, but also being able to cite where the information is coming from. We've interviewed that CEO before and that's our relationships were certainly see such a screen looks. So I think this is an interesting area that there's gonna be a lot of investment being thrown into the AI space, and some will be competitors and some will be able to grow in tandem. Well very quick. We had some Motmedi his colleague on the show just a couple of weeks ago, right, and he makes the point I'm looking at enterprise companies how they can take existing tools because AI will improve every single company I think, is what he said. So this makes sense based on the activity that we're seeing out there. Welcome back to being my technology. I'm Parranghi and I made lovelow, both of us in San Francisco for the final time this week. I'm sad to say. Now, let's get to crypto markets. They're struggling to power through the implosion of silver Gate Capital, the bank one of the main banking providers for the crypto industry, which is why we're seeing sentiment drop in other crypto related assets, Bitcoin hitting a two week low. For more, Let's bring in Bloomberg's Uchi Yanguchi. So many headlines on the Bloomberg this Friday. What is the latest with silver Gate. So we're really is still seeing the ripple effect from the collapse of FTX last November. As we know, FTX is a major client of Surrogate, and the Surrogate as a results suffered from a bank round last year. But then this week the bank said that they couldn't really file their annual filings on time. They said that this disclosed more losses for selling securities, and then they said they're evaluating if they can stay aflawed internally, and they also indicated risk of being investigated by the Department of Justice. So all of these really prompted exodus of all the keyp hunters of users on the silver Gate platform, which is one of the few and key payments platform for crypto companies to transfer US dollar between each other in real time. Quin mascalicxy Digital, Paxos Trust, all of these saying look card ties with silver Gate are being put on hold for the time being. Where then do we go for these sorts of ability to transfer, to be able to ensure that the pipes are still working, the infrastructure still there. That is the question that the industry players are trying to figure out. Another bank that's in this space is signature bank, but they already announced that they're actually planning to reduce the deposits from crypto companies and and so that's so there's not many options right now for crypto players to find a bank that's willing to take them out on and replace the role of surrogate. You tee more of a PSA for our audience, But some of the ratings agencies catching out ratings cut by Moodies at silver Gate not so sure, that's a surprise. Where do we go from here? You know, Caroline and I were talking actually earlier on a Twitter spaces about how we were talking at the end of last year the beginning of this year that Silvergate was in trouble. Why do they keep falling further and further. So we're seeing regulatory pressure from the DC as we know that after the bankruptcy of FTX, federal banking regulators all came out with warnings talking about the risk of serving cryptal companies for banks, and they're really trying to make sure that any contagious risk from the industry will not leak into the real world economy. So Silvergate is one part of that. We're seeing that the bank is now trying to figure out a solution about their pass going forward. Deposits from cryptal companies were the majority of their depositor base, and they're really unique in the sense that they're getting hit pretty hard because their depositors are fleeing the bank. Essentially, the problem a problems of centralized finance within the world of decentralized finance. Chang, we thank you so much in New York staying late. We appreciate it. Go have a wonderful weekend. Let'sting more into this though. We've got a perfect voice, Anastasia Bez, CEO of Cadaana. It's a scalable proof of work blockchain that actually spun off from JP Morgan's private project and associate infrastructures that your heart basically in terms of some of what you're trying to build a Cadana and support within the ecosystem. But just first and foremost take us to the interplay of centralized finance and traditional finance trying to interweave itself with decentralized finance. How much are people worried about some of the contagion risks within Signature bank can Indeed, I'm not Signature apologies, but Slivegate and what it ultimately means for the growth in the ecosystem. I thanks. I think that one of the big things is that we still have to interact with centralized thinking, especially you know, companies that are based in the US. So if you want to have these US companies, we need to have access to bank accounts and be able to do pay roll and healthcare and things like that. So it's it's one of those realities that in a decentralized world, we still have to be able to play and integrate with you know, banks. So I don't know quite where it's going, but it needs to be something that happens, otherwise we're not going to be able to have companies in the way that functions. As a case in point Anastasia, know we are talking about silver Gate, a lender, almost traditional lender, but lending to the crypto industry. As someone participating in that space. This is what we asked our audience. Okay, whether this is kind of it, the worst has happened, or if there's more to come, how do you go about running a business as COO? We asked, is the contagion spillover contained seventy percent of respondents said, no, are you kind of worried about the health of this industry right now? It's so hard to tell because I think that there keeps being moments where people say this is it, and then there's something new that comes out. So I think that there's sort of been a continuing ripple effect. But I think also, I mean, I'm at e Fenver right now, and there's a lot of optimism about the technology and what people are building and sort of tech infrastructure, and I'm seeing a lot of you know, collaboration and cooperation between you know, interchain projects where people are seeing the strength of one project and how that can work with another. And so as much as there's sort of these these very real concerns, I also think that people are still innovating and building things that are pretty exciting. But you know, I mean, we want to do it, Relly. We want to build things that are resilient, and that means being resilient in the business world, not just in the tech world. Okay, so Anna Saysia, let's talk about what you're building. It's you know, a proof of work blockchain some would say equivalent to a bitcoin, but it's scalable as fast as the idea In particular, what are you hoping that Cadena can solve within the infrastructure needs. So one of the things is we are fast but also secure because we have a structure that has braided chain so that it refers to other parts of the chain. But really what we're trying to offer is for businesses to be able to build on top of us and be able to take that security and also the scalability without having to worry about, you know, as many of the security risks. And you know, we also have a smart contract language, so that's the programming language that people write different blockchain applications in called packed, and that has a lot of safety features to it. So that's something that we see being more accessible and easier for people to use as developers because of the way that it's structured, which hopefully means that people can build more viable businesses because you'll be able to it's human readable, so I can read one of the contracts and see what it says. You know, as a non engineer, that's really valuable to be able to understand what's happening, even though you know you want to get to a world where you don't have to look under the hood and you can trust with that, well said, I mean Cadena, as I sort of said at the beginning, was spun out of a private blockchain project being built within JP Morgan. The founders helping exercise really that first blockchain at JP Morgan. And therefore, I ask you, what is traditional companies appetite to continue to invest or to adopt within overall crypto space, whether it be building their own private blockchain so that be trying to harness the power of the technology. Were at the same side, they've got this worry about ultimately how much bad press the ecosystem gets. I think that companies are trying to balance that where there is some real innovation or people have this appetite for new things that might solve problems, but that they are trying to balance that with you know, being a little bit more conservative at large companies, and that's you know, it's a balance that they have to strike. But there is still interests. There's definitely still companies that are doing partnerships and you know, finding different ways to build in the space, you know, in ways that I think very real, whether that's you know, it's just a variety of different things. But I think that some of it where it's going to go is not partnerships that you understand like that are visible, but just under the hood, there's a blockchain technology doing something. I want to dig into blockchain technology. I know this is an area you care deeply about in tech literacy. So Caroline and I have been talking a lot about artificial intelligence. We've been experimenting with it, using it. You see everyone having a go, and I feel like with the crypto hysteria, hype, whatever you want to call it of the last two years, a lot of people miss the basics. Would you say that that's fair. I think that there's a huge need for education and a huge opportunity for education still in the crypto space, where there's a lot to learn and right now. I mean, I use this example, but I've talked to my mom about how she wants to do things in crypto and it just becomes this huge bureaucratic onboarding experience. And so I definitely agree that more education should happen, and it is happening. But I also I see more and more people understanding some of these things around, for example, self custody and what that means, whether you have children's on in exchange or you have custody of them yourself. I mean, that's like a really important education point. His two moms wanting to get into crypto and Astasia thanks so much, Anastasias of Cadena, Thank you so much for your time. Keep enjoying if Denver. Meanwhile, let's turn to the VC world now and some of that hype around AI. I caught up with Aldelue Dennis, general partner of an Initialized Capital, and Avanta Acatit COO of a Frame Brands as part of Bloomberg's International Women's Day event. I asked them how they cut through some of the noise, the hype, some of the warriors as well. Take a listen. I think if the answer is to actually have more diversity on your investing team, because there's a certain attraction that some people who are more interested in certain sectors, more interested in the heart any object will be attracted Tom. And meanwhile, they may ignore a very large sector such as family tech for example. Yes, that is a huge market that impacts you know, uh, you know, billions and billions of lives. That has as much potential and so for me personally, spending time on an industry like crypto or CHATSBT, there's plenty or AI. I mean, there's plenty of investors who are going to follow that, and I think the value is had in finding large markets that are underserved. Yeah, which I think also Starry is also going back to even like the old tech adages of problem solution, like we need to actually solve problems for people as opposed to like as opposed to kind of getting caught up in the hype. What about some of the ethics around that? Yes, hum, when it comes to bias and how are you thinking, Oh, I'm frightened. Yes, because AI is only as good as what you put into it, and it's humans have bias and so they bias is going to be rolled into it. And actually often when I talk about bias, when in building structures and orgs, I think biases like gravity, it's something that you can you can't see, It's like it just exists, and you have to figure out how if you want to be able to fly, you want to defy gravity, you need to build a whole bunch of things. You need to build a plane that is intentional towards being able to do that. And so if you want to be able to try and remove bias from things. You have to build a whole bunch of stuff and be intentional on drawing that out. And I think especially as hype is building, people are not being as not slowing down just to be as intentional about it, which is worrisome. Also, lujenis general partner Initialized Capital and Avanta Ratgi their COO of a famous brams and ed the reason Avanta's point of view is so important when it comes to bias when it comes to building new businesses is she is a proud trans woman of color and she was very happy to go there to this vulnerable space with us of what it was like being a man in the room to them being a woman in the room when trying to discuss the building of businesses. She now is all about trying to create new brands that serve a diverse population to have that bias stripped out from the very beginning. If anyone is going to be attuned to what AI She's also helps build virtual worlds, for example, in the world of fashion, she's going to be attuned to what's some of the ethics that we need in place ahead of it. What I took from that is why the Bloomberg New Voices initiatives. So important is to bring the people that are actually having the conversation into the room together. But two really core tenets of venture capital and founders. What is a problem that we're trying to solve and what's the technological solution? And then how do you build a company? And they just cut through the noise as you said, Ai Crypto. No, actually it's a problem solution, make a company to solve it. I think that's terrific. And Alses I mean, background is phenomenal, having been GC over at the Founders found but then has gone on to work on She's written personal checks to space sex. She has had real success in some of the companies which is built and invested in within We've got to remember initialized eighty percent led by women. The New Voices scheme so loud and proud about it here at Bloomberg. If you want to get media trained, come in and understand a little bit more right And if you know someone out there in the industry, come to us, tell us about them and then we will talk to them. Now coming up a new TikTok trend about the rising costs of dating, racking up millions of views. That's next. This is Bloomberg. Democratic Representative Rocana has represented Silicon Valley since twenty seventeen. Now he's working to look broaden the US technology focus of San Francisco. Kanna was a key player in the passage of the Chipsack to jump start semiconductor production in the ninety teenth States. Now he has a two trillion dollar pitch tree vitalize US manufacturing in what he calls economic patriotism. Is how he's framing it, a new economic patriotism. It simply means that the private sector can work with universities, community colleges, labor, the government to have a common purpose of investing in America's production capability. What I think we need to do is look at regions that have been decimated, be investrialized, say what are their assets? How can we have a moon shot there? How can we have place based policy for economic revitalization. What some of your proudest accomplishments so far? It was early the chips in Shigne Tech that I helped draft, led to two Intel factories coming to Ohio, led to microd being in Upstate New York with almost one hundred billion dollar investment. I believe for us to have the next generation of manufacturing, we need new technology, We need immigrants, we need a educated workforce, we need the skill trades and vocational education, and we need government financing. And this can be a common national purpose, the economic revitalization of the country. I've said we need a chip SAT every year for many different industries. This can't be a one off. Now, both parties recognize that the gutting of factory towns was a huge mistake. The offshoring of production was a huge mistake. The economic disparity is polarizing America. I've called for a two trillion dollar investment over ten years. The chip sacked was about fifty billion. We need to have the same urgency, the same scale to build this production base. It is a difficult argument to convince people on this spending. I have not gotten people to buy into the two trillion dollar investment. I did the bill with Marco Rubio. He's good with twenty billion investment, which is a start, but I will continue to make it that we have to go big and bold on this great report coming from our colleague Kalas Shader, and it is notable that we're trying to see this focus in California. Of yes, technology has been the heartbeat center, particularly from a revenue perspective of anything about taxes. But they have to diversify. And you think about California, I also think of the ports. I also think of infrastructure. I also think of rebuilding, and I think of a global supply chain. There's up in arms. It's a really good point. How much time have I spent down at the Port of Los Angeles in the last two years. But you know when I talked to founders and I talked to vcs whatever, that they kind of want to protect the brain trust coming out of the universities here. There's also a societal discussion around living in San Francisco, the Bay Area, how difficult it can be. But the conclusion they will come to is we need to invest a bit more money. Money talks, doesn't it all right? Let's pivot to a new trend gaining traction. Guess where TikTok dating spreeze. It's beginning to make sense why dating apps are testing those premium subscriptions, some of them upwards of five hundred dollars per month. TikTokers are racking up millions of views, breaking down the high cost of dating. Some went on twenty eight dates in twenty eight days to show how inflation has impacted their love life. Yes, I did say that. One event went on twenty eight bind date dates to raise money for charity. Now Here to explain Bloomberg's misser Lena A Kufapulu, missy, what is this all about? Well ed? If you're looking at for examples about how TikTok is changing the quests for love, we have one for you. You mentioned it. One thirty one year old girl in New York City decided in the month of February to go on twenty eight dates in twenty eight days, and of course, naturally she chronicled all of those days on her social media platforms. She gained thousands of followers in the process, and all of them as she was doing that. She told it in an interview at Bloomberg that they were asking the same question how much is this costing you? And who is doing the pain? Which I think is a key question for a lot of people looking for love right now. In most cases, was it shed, did they break it down, did they joint me pay? What was the up? And they come out out of all of this well, Caroline, I think the answer to that is it depends on who you ask. It's definitely a question that a lot of people are passionate about different cultures, and different people have different opinions about it. So we spoke to one etiquette expert who basically said the weight of the cost should fall on whoever is doing the asking, And so if you're not able to afford a day you're asking someone out on, then maybe think of other alternative, cheaper dates that you can go to, because they really can wrap up in the hundreds of dollars per the TikTok's that we saw this one year thirty one year old post on her profile. And so really, if you're asking someone out and Caroline, make sure you're the one pay. And when they're doing the TikTok aft, is they using the bold glamor filter that therefore makes you look nothing like you actually do in real life too, So that's the key question for all of it. Bloomberg's Israeliane Egokofa, who thank you so much for joining us now Netflix. It's going viral on several fronts. Let's start with one of the Murdock murders in case you missed it, This week, a jury convicted Alec Murdock, a prominent South Carolina lawyer, of murdering his wife and son back in June twenty twenty one, as he was sentenced to life in prison. Now here's the other kind of unnursing part about all of this. Murdoch was convicted just days after a doctor series on the matter was released on Murdflix. And this is where sort of art starts to reflect what's happening in the here and the now. Yes, from a long time we've wondered when streaming companies will sort of getting into news or real time events, and it is they are, but it's also kind of not new. And my mind goes to Tiger King and bear with me, but remember the sort of media hype around it, and then the question, So that that Doctor series raised about some of the characters. Tiger King was a massive one for Netflix. You see it there on the screen and it induced follow ones, and that's not it. They're also thinking about a really old school, old fashioned concept live television and also timing of releases. For example, we're going to get Chris Rock. He's going to be coming with his stand up comedy routine to Netflix exactly the week before the Academy Awards the Oscars, which of course was so famed for the slap, and they're doing it live. Who would have thought it? Yeah, it's what March fourth that it's coming? Yeah, a week the Oscars next week. Meanwhile, that doesn't for this edition of Bloombog Technology, don't forget a lot to recap incredible week the two of us together. Check out the podcast Apple, Spotify, iHeart, wherever you get your podcast