We're from Mahard where innovation, money and power. Collie in Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

We're from Mahard where innovation, money and power. Collie in Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

Amed Ludlow in San Francisco carries off on assignment.

Amed Ludlow in San Francisco carries off on assignment.

This is Bloomberg Technology.

This is Bloomberg Technology.

Coming up, We're going to talk earnings as Oracle posts its biggest gain in two years amid a spiking bookings in its cloud computing business. Details ahead, plus Bitcoin continuing its record breaking run as two point seven billion dollars flowed into crypto assets last week. We'll discuss with the Delta Blockchain Fund CEO, and legislation that would force TikTok's parent company to sell it or face a ban in the US is picking up speed in Congress. We'll discuss that and so much more throughout the hour. Let's get right to market. Said it was a hotter than expected CPI print that drove the narrative this morning. Actually in the equity space, it was kind of a negative reaction at first. We haven't really changed our mind about the idea that if a rate cut is coming from the Federal Reserve, it isn't coming till June. But actually look at the Nazak one hundred. We're now up by more than a percentage point. A lot of the legwork coming from some of the earning story that we're going to get into. Semiconductors also higher, outperforming one point four percent, even.

Coming up, We're going to talk earnings as Oracle posts its biggest gain in two years amid a spiking bookings in its cloud computing business. Details ahead, plus Bitcoin continuing its record breaking run as two point seven billion dollars flowed into crypto assets last week. We'll discuss with the Delta Blockchain Fund CEO, and legislation that would force TikTok's parent company to sell it or face a ban in the US is picking up speed in Congress. We'll discuss that and so much more throughout the hour. Let's get right to market. Said it was a hotter than expected CPI print that drove the narrative this morning. Actually in the equity space, it was kind of a negative reaction at first. We haven't really changed our mind about the idea that if a rate cut is coming from the Federal Reserve, it isn't coming till June. But actually look at the Nazak one hundred. We're now up by more than a percentage point. A lot of the legwork coming from some of the earning story that we're going to get into. Semiconductors also higher, outperforming one point four percent, even.

As you do see rates creep high.

As you do see rates creep high.

US ten y yield was up about five basis points four point one four percent, and now Bitcoin is down one point three six percent at this moment in time, just below or above sorry, seventy one thousand US dollars per token. I talked about the kind of upside inequities Nazak one hundred. It's probably Oracle that accounts for a lot of that. At one point in the session, on course for its biggest jump since the end of December twenty twenty one, the story twenty five percent top line growth in its cloud business. If you look at all of the analyst notes, there is an AI tailwind here is Oracle tries to compete with the hyperscalers. Let's get right to that conversation and bring in Bloomberg's Brody Ford, the Oracle whisperer in chief.

US ten y yield was up about five basis points four point one four percent, and now Bitcoin is down one point three six percent at this moment in time, just below or above sorry, seventy one thousand US dollars per token. I talked about the kind of upside inequities Nazak one hundred. It's probably Oracle that accounts for a lot of that. At one point in the session, on course for its biggest jump since the end of December twenty twenty one, the story twenty five percent top line growth in its cloud business. If you look at all of the analyst notes, there is an AI tailwind here is Oracle tries to compete with the hyperscalers. Let's get right to that conversation and bring in Bloomberg's Brody Ford, the Oracle whisperer in chief.

I mean that for me was the story right, you know.

I mean that for me was the story right, you know.

Overall top line growth seven percent matched estimates, but that performance in the cloud unit that was pretty good.

Overall top line growth seven percent matched estimates, but that performance in the cloud unit that was pretty good.

Yeah, they booked a lot more business than anybody expected. And the executives attributed that to the cloud business, saying that right now everybody needs more cloud computing power. Era of AI training models plus just mass digitization means that there's not enough computing power to go around. And a lot of folks are signing that piece of paper with Oracle and we should see that turned into revenue in the coming quarters.

Yeah, they booked a lot more business than anybody expected. And the executives attributed that to the cloud business, saying that right now everybody needs more cloud computing power. Era of AI training models plus just mass digitization means that there's not enough computing power to go around. And a lot of folks are signing that piece of paper with Oracle and we should see that turned into revenue in the coming quarters.

Brody, one of the great things about you is you can take any technology company that on paper, I'm saying on paper can be a bit dry, right. They used all this jargon that we don't fully understand. In Oracles case, remaining performance obligation. If anyone phones you up and said that you'd hang up, you fall asleep. But actually, in Oracles case, this is a mighty impressive backlog of business, and the street's really paying attention.

Brody, one of the great things about you is you can take any technology company that on paper, I'm saying on paper can be a bit dry, right. They used all this jargon that we don't fully understand. In Oracles case, remaining performance obligation. If anyone phones you up and said that you'd hang up, you fall asleep. But actually, in Oracles case, this is a mighty impressive backlog of business, and the street's really paying attention.

Yeah, absolutely, it is the backlog, as you said, right, it's business that's been signed. And what's interesting about that is the reason it's a backlog is because they don't have the physical space, right, I mean, the cloud isn't this infinite thing in the Sky. It's data centers in Virginia, right, and they need to build more of them. They said that in the next year they're going to spend ten billion dollars building out their data center presence around the country. And think about that capex compared to a couple of years ago, it was two billion. I mean, this is a huge increase and that's what's giving investors confidence that they truly are building out their footprint in response to customer demand.

Yeah, absolutely, it is the backlog, as you said, right, it's business that's been signed. And what's interesting about that is the reason it's a backlog is because they don't have the physical space, right, I mean, the cloud isn't this infinite thing in the Sky. It's data centers in Virginia, right, and they need to build more of them. They said that in the next year they're going to spend ten billion dollars building out their data center presence around the country. And think about that capex compared to a couple of years ago, it was two billion. I mean, this is a huge increase and that's what's giving investors confidence that they truly are building out their footprint in response to customer demand.

So I talked about the AI tailwind. That is what the bulls see here. These Oracles AI story, Where did they fit in and everything that's going on.

So I talked about the AI tailwind. That is what the bulls see here. These Oracles AI story, Where did they fit in and everything that's going on.

Yeah, I mean every software company wants to say that any outperformance is due to AI Oracles no different. It's hard to exactly parts how much is coming from it. But there is some real third party voices here saying that Oracle's cloud is particularly good for training and influencing these AI models, which are notoriously resource intensive, right, And so we've heard of a lot of folks going to Oracle to train their models, and yeah, so that has been fueling some of this demand, but there is some skepticism, right. Brent phil was on here yesterday saying that the actual current amount of revenue coming from AI workloads is not massive, but the idea is that in the coming quarters, in the coming year, as AI becomes a more mainstream part of the tech stack, that that will increase.

Yeah, I mean every software company wants to say that any outperformance is due to AI Oracles no different. It's hard to exactly parts how much is coming from it. But there is some real third party voices here saying that Oracle's cloud is particularly good for training and influencing these AI models, which are notoriously resource intensive, right, And so we've heard of a lot of folks going to Oracle to train their models, and yeah, so that has been fueling some of this demand, but there is some skepticism, right. Brent phil was on here yesterday saying that the actual current amount of revenue coming from AI workloads is not massive, but the idea is that in the coming quarters, in the coming year, as AI becomes a more mainstream part of the tech stack, that that will increase.

All right, Bloomberg's Brady Ford and as we talked about earlier, Oracle a real kind of contribute to to the upside we see in ectees, particularly in the tech sector.

All right, Bloomberg's Brady Ford and as we talked about earlier, Oracle a real kind of contribute to to the upside we see in ectees, particularly in the tech sector.

This morning. Good Seamate.

This morning. Good Seamate.

Now let's turn to another top story we've been tracking for about a week, latest in Elon Musk's lawsuit against open ai and Sam Outman. Open Ai saying in a court filing that the billionaires claims quote rest on convoluted, often incoherent, factual premises. Let's bring in Bloomberg's AI reporter Rachel Metz. What is it that open ai is trying to say here in normal people speak.

Now let's turn to another top story we've been tracking for about a week, latest in Elon Musk's lawsuit against open ai and Sam Outman. Open Ai saying in a court filing that the billionaires claims quote rest on convoluted, often incoherent, factual premises. Let's bring in Bloomberg's AI reporter Rachel Metz. What is it that open ai is trying to say here in normal people speak.

Rachel, Open ai is actually echoing in this corre filing a number of the things that they said previously in a blog post that they put up that had a lot of juicy emails. This was last week, and also some internal memos that we got a hold of recently. Basically, they're saying there was no agreement for us to do what you said, what you're saying is incorrect, and you know a few other tidbits of just saying as you say said, your argument is incoherent. And what's funny about this is it is a procedural filing that they were putting in this filing to say that we want this court case to be classified as what's known as a complex case in California and then I'll give it a tiny bit of treatment in a different way by a judge who you know can understand this stuff and also like get things done quickly.

Rachel, Open ai is actually echoing in this corre filing a number of the things that they said previously in a blog post that they put up that had a lot of juicy emails. This was last week, and also some internal memos that we got a hold of recently. Basically, they're saying there was no agreement for us to do what you said, what you're saying is incorrect, and you know a few other tidbits of just saying as you say said, your argument is incoherent. And what's funny about this is it is a procedural filing that they were putting in this filing to say that we want this court case to be classified as what's known as a complex case in California and then I'll give it a tiny bit of treatment in a different way by a judge who you know can understand this stuff and also like get things done quickly.

Well, there's also a reason why.

Well, there's also a reason why.

So Vinode Koestler, who is one of the early open ai investors, was on the show yesterday and one of the things that he was arguing for was that, you know, open ai is critically important from a national security context, right if America wants to be competitive in AI, then we need to support open ai in doing that. And I my understanding is that one of the things open ai did with this filing is basically to say, hey, if we go through with this lawsuit, the discovery process will give away all our secrets in the context of AI.

So Vinode Koestler, who is one of the early open ai investors, was on the show yesterday and one of the things that he was arguing for was that, you know, open ai is critically important from a national security context, right if America wants to be competitive in AI, then we need to support open ai in doing that. And I my understanding is that one of the things open ai did with this filing is basically to say, hey, if we go through with this lawsuit, the discovery process will give away all our secrets in the context of AI.

Yeah.

Yeah.

See, they did argue that although to be fair.

See, they did argue that although to be fair.

One could argue that.

One could argue that.

Any discovery process might have a risk of bringing up things that you don't watch over at the public grade. I mean, that's part of what makes it just interesting to the rest of us. Right, What comes out in the discovery process can be very interesting. That could be, But hopefully we'll get some interesting information and some of the things that they are hoping to keep a prietary will beget proprietary.

Any discovery process might have a risk of bringing up things that you don't watch over at the public grade. I mean, that's part of what makes it just interesting to the rest of us. Right, What comes out in the discovery process can be very interesting. That could be, But hopefully we'll get some interesting information and some of the things that they are hoping to keep a prietary will beget proprietary.

All right.

All right.

Bloombers Rachel Metz covering a story that we've been covering almost daily for a week now, and we will continue to do so. Another big story in the world of technology and video and Data Bricks are facing copyright infringement lawsuits from a group of authors alleging the company's respective AI models are trained on their books without permission. The pair of proposed class actions, filed in San Francisco Federal court, alleged Nvidia and Data Bricks built their models on a library of pirated digital e books known as Books three. The suits were filed in March eighth, and they joined dozens of authors and copyright owners around the country suing top AI companies, and those include open ai and Meta all Right. Coming up on Bloomberg Technology Bitcoin hovers near that all time high. Can the cryptocurrency run be sustained? Seventy one six nine two dollars per token right now, we're also taking a look at shares of ARM, the chip design firm.

Bloombers Rachel Metz covering a story that we've been covering almost daily for a week now, and we will continue to do so. Another big story in the world of technology and video and Data Bricks are facing copyright infringement lawsuits from a group of authors alleging the company's respective AI models are trained on their books without permission. The pair of proposed class actions, filed in San Francisco Federal court, alleged Nvidia and Data Bricks built their models on a library of pirated digital e books known as Books three. The suits were filed in March eighth, and they joined dozens of authors and copyright owners around the country suing top AI companies, and those include open ai and Meta all Right. Coming up on Bloomberg Technology Bitcoin hovers near that all time high. Can the cryptocurrency run be sustained? Seventy one six nine two dollars per token right now, we're also taking a look at shares of ARM, the chip design firm.

'tis a story as old as time.

'tis a story as old as time.

The lockup is ending, and the concern from shareholders is that those insiders that are now free to sell shares will do so. Of course, it's a story that happens for many in the immediate post IPO and aftermath. And think about the number of technius that have listed in the last six months or so. Continue tracking that soft three tens to one percent on on. This is Bloomberg Technology Bitcoin's record breaking run, showing few signs of slowing, with large amounts of capital inflows strong demand for the cryptocurrencies, so it reached an all time high of seventy two, eight hundred and eighty one dollars on Monday, with some investors eyeing a target of eighty thousand US dollars in the medium term. Meanwhile, Gray Scale Investments is looking to launch a clone of the world's largest bitcoin fund after it saw more than eleven billion dollars of outflows from its GBTC fund, the analysis from Cavita Gupta, Delta Blockchain fun founder and general partner. So there's something going on in the short term, and then there's the debate about what's going on in the long term. Let's start with the short term. The flows data seems to imply sustained momentum behind at least institutional interest right in bitcoin. Just give me your assessment of the hear in the now.

The lockup is ending, and the concern from shareholders is that those insiders that are now free to sell shares will do so. Of course, it's a story that happens for many in the immediate post IPO and aftermath. And think about the number of technius that have listed in the last six months or so. Continue tracking that soft three tens to one percent on on. This is Bloomberg Technology Bitcoin's record breaking run, showing few signs of slowing, with large amounts of capital inflows strong demand for the cryptocurrencies, so it reached an all time high of seventy two, eight hundred and eighty one dollars on Monday, with some investors eyeing a target of eighty thousand US dollars in the medium term. Meanwhile, Gray Scale Investments is looking to launch a clone of the world's largest bitcoin fund after it saw more than eleven billion dollars of outflows from its GBTC fund, the analysis from Cavita Gupta, Delta Blockchain fun founder and general partner. So there's something going on in the short term, and then there's the debate about what's going on in the long term. Let's start with the short term. The flows data seems to imply sustained momentum behind at least institutional interest right in bitcoin. Just give me your assessment of the hear in the now.

So if I look at the short term, ed I really see that the Bitcoin ETF demand has surpassed a lot of people's expectations. I mean, traditionally we have always expected that before bitcoin having the prices always goes up. But even when we see the sell pressure from the market, people who have been through the beer had actually hold it, we see the buy is just too much. So it's been a very interesting cycle for bitcoin.

So if I look at the short term, ed I really see that the Bitcoin ETF demand has surpassed a lot of people's expectations. I mean, traditionally we have always expected that before bitcoin having the prices always goes up. But even when we see the sell pressure from the market, people who have been through the beer had actually hold it, we see the buy is just too much. So it's been a very interesting cycle for bitcoin.

Something that I've been bringing up on air in the last few days, if not weeks, is that there is a scenario where those that are bullish from cryptocurrencies, particularly bitcoin, and those that are bearish on bitcoin, seem to agree on one thing. That is, from where we are now, it is likely Bitcoin goes to a higher milestone we just talked about eighty thousand as a medium term call. I've also seen one hundred thousand, but there are many that agree that it will then pull back. What's your understand the why behind that?

Something that I've been bringing up on air in the last few days, if not weeks, is that there is a scenario where those that are bullish from cryptocurrencies, particularly bitcoin, and those that are bearish on bitcoin, seem to agree on one thing. That is, from where we are now, it is likely Bitcoin goes to a higher milestone we just talked about eighty thousand as a medium term call. I've also seen one hundred thousand, but there are many that agree that it will then pull back. What's your understand the why behind that?

I think combination of things. The first thing is after the bitcoin having we always see some sort of a plateau or ten to twenty percent pull in squeeze. We are also expecting a lot of people in the market are expecting interest rate to be cut down before elections, and I think the elections being this year in the United States going to really define how the political roadmap, whether pro crypto or not that much procrypto, going to define. But beyond bitcoin, we have already started seeing the technology rally, which is with et and Polygon and Solana, so I think that's also going to define this roadmap of bitcoin prices.

I think combination of things. The first thing is after the bitcoin having we always see some sort of a plateau or ten to twenty percent pull in squeeze. We are also expecting a lot of people in the market are expecting interest rate to be cut down before elections, and I think the elections being this year in the United States going to really define how the political roadmap, whether pro crypto or not that much procrypto, going to define. But beyond bitcoin, we have already started seeing the technology rally, which is with et and Polygon and Solana, so I think that's also going to define this roadmap of bitcoin prices.

There is an interesting news story this very morning where the Risbank governor, a central banker, gave his opinion that he wanted to minimize bitcoins I guess influence presence in the financial sector. He said, I want as little bitcoin as possible in the Swedish financial system. What do you make of the central bank governor weighing in like that.

There is an interesting news story this very morning where the Risbank governor, a central banker, gave his opinion that he wanted to minimize bitcoins I guess influence presence in the financial sector. He said, I want as little bitcoin as possible in the Swedish financial system. What do you make of the central bank governor weighing in like that.

I mean, we have seen that again and again every bull cycle. We see some country or some influential Web two world institution coming and saying this could be a problem, and then in the bear market they're like, we told you it's a problem. And then more institutional adoption, more retail adoption, and then more and more states and countries started using it. I mean, so it's not new said that. I think it's beyond any particular state, city, country at this point of time, all the way to us where now we do have bitcoin ETFs. We are only three years back, the question was bitcoin will be even legal or will it exist or not?

I mean, we have seen that again and again every bull cycle. We see some country or some influential Web two world institution coming and saying this could be a problem, and then in the bear market they're like, we told you it's a problem. And then more institutional adoption, more retail adoption, and then more and more states and countries started using it. I mean, so it's not new said that. I think it's beyond any particular state, city, country at this point of time, all the way to us where now we do have bitcoin ETFs. We are only three years back, the question was bitcoin will be even legal or will it exist or not?

Back in twenty one twenty.

Back in twenty one twenty.

Two itself, the central bank governor's argument was that it's not a threat to financial stability, but he's worried about the impact on consumers that may or may choose to hold.

Two itself, the central bank governor's argument was that it's not a threat to financial stability, but he's worried about the impact on consumers that may or may choose to hold.

That as a risk asset.

That as a risk asset.

What is the big picture that's happening here beyond bitcoin? Where what is the state of industry and right now for Cryptakeovita, I.

What is the big picture that's happening here beyond bitcoin? Where what is the state of industry and right now for Cryptakeovita, I.

Think it's all about technology. We usually it like you and me have talked about this before. We always talked about just the bitcoin and the prices, Like even when we talk about anything in this space, we always talk about whatever has caught height, like oh, NFT is done by.

Think it's all about technology. We usually it like you and me have talked about this before. We always talked about just the bitcoin and the prices, Like even when we talk about anything in this space, we always talk about whatever has caught height, like oh, NFT is done by.

Some Hollywood actor.

Some Hollywood actor.

But the real thing out here is the technology, the decentralization of things, which are now used by some of the biggest companies, some of the biggest institutions globally, and that's why you see ethereum rally as the second biggest asset currency.

But the real thing out here is the technology, the decentralization of things, which are now used by some of the biggest companies, some of the biggest institutions globally, and that's why you see ethereum rally as the second biggest asset currency.

Then you're seeing.

Then you're seeing.

All coins which I want to call technology tokens. Actually, whether it's Polygon, whether it's Solana, whether it's arbitrum. Optimism is doing very well, which is letting the transaction per second to be way much more scalable and much less cost So I think it is about the technology that which is not just Web three native, but adoption and supply chains, adoption in international remittances, adoption and stable coin yields. And I think we need to start talking in the mainstream media more about the underlining tech than just the price movement. It's really amazing when we have trillion dollars to talk about, but I think the technology should start making the highlights now.

All coins which I want to call technology tokens. Actually, whether it's Polygon, whether it's Solana, whether it's arbitrum. Optimism is doing very well, which is letting the transaction per second to be way much more scalable and much less cost So I think it is about the technology that which is not just Web three native, but adoption and supply chains, adoption in international remittances, adoption and stable coin yields. And I think we need to start talking in the mainstream media more about the underlining tech than just the price movement. It's really amazing when we have trillion dollars to talk about, but I think the technology should start making the highlights now.

On the technology and the long term there seems to be bipartisan not support, but probably acknowledgment of what's happening with cryptocurrencies and the underlying blockchain technologies. Do you agree with that that that's what's happening in DC in particular.

On the technology and the long term there seems to be bipartisan not support, but probably acknowledgment of what's happening with cryptocurrencies and the underlying blockchain technologies. Do you agree with that that that's what's happening in DC in particular.

Yeah, but I also feel like DC is much more informed today than what it was five years or four years back. But at the same time, we should look at blockchain as a more of a trusted technology than just oh, whether it's a cash currency bitcoin. So just to give you a quick example, because you were just talking about open AI today, you can scrap data from anywhere, but doing the verification of that data has always been a problem with the social media and the AI chat GPT process, and that's what gives you on blockchain, the verification of the data, the ownership of that content and whom to give it back to if it's their an ip right associated with it. Very similar to what New York Times and a lot of news media actually tried to blame and see open GPT. I think we are forgetting that at the end of the day, whether it's ethereum, where it's blockchain, any of those things. Bitcoin, we are talking about the underlining traceability, verification, decentralization technology, and I think going back to DC. More and more people are getting informed about it, but just the charm of talking about INDK Bitcoin prices are just too difficult to get away from.

Yeah, but I also feel like DC is much more informed today than what it was five years or four years back. But at the same time, we should look at blockchain as a more of a trusted technology than just oh, whether it's a cash currency bitcoin. So just to give you a quick example, because you were just talking about open AI today, you can scrap data from anywhere, but doing the verification of that data has always been a problem with the social media and the AI chat GPT process, and that's what gives you on blockchain, the verification of the data, the ownership of that content and whom to give it back to if it's their an ip right associated with it. Very similar to what New York Times and a lot of news media actually tried to blame and see open GPT. I think we are forgetting that at the end of the day, whether it's ethereum, where it's blockchain, any of those things. Bitcoin, we are talking about the underlining traceability, verification, decentralization technology, and I think going back to DC. More and more people are getting informed about it, but just the charm of talking about INDK Bitcoin prices are just too difficult to get away from.

We didn't get to Ethereum, but I would note that there are lots of headlines about investment into the Ethereum ecosystem, which you'd point out Cavita, Gitta, the Delta blockchain. Find great to have.

We didn't get to Ethereum, but I would note that there are lots of headlines about investment into the Ethereum ecosystem, which you'd point out Cavita, Gitta, the Delta blockchain. Find great to have.

You on the show.

You on the show.

Okay, it's time for talking tech and first up, Jamie Diamond has once again hailed artificial intelligence, pointing to the technologies quote unbelievable potential for the banking industry. The JP Morgan CEO says ais use across functions like risk, fraud, marketing, customer relations has caused it to grow in importance within the company. And Jaomi, a Beijing based electronics firm best known for its smartphones, had its biggest intra day share gain in more than a year after the company announced it will start selling its long awaited electric.

Okay, it's time for talking tech and first up, Jamie Diamond has once again hailed artificial intelligence, pointing to the technologies quote unbelievable potential for the banking industry. The JP Morgan CEO says ais use across functions like risk, fraud, marketing, customer relations has caused it to grow in importance within the company. And Jaomi, a Beijing based electronics firm best known for its smartphones, had its biggest intra day share gain in more than a year after the company announced it will start selling its long awaited electric.

Vehicles this month.

Vehicles this month.

The company's multi billion dollar bet marks its entry into a red hot contest in China's EV market, which is led, of course by Tesla and BYD plus. Legislation that would force TikTok's Chinese parent to sell itself. All face of ban in the US is picking up speeding Congress, posing a dilemma for Republican lawmakers after former President Donald Trump reversed his previous stance and suggested the app should not be banned, after saying all young TikTok users would quote go crazy without it. Let's stick with TikTok, and let's turn to its current place in the political landscape. Every election cycle, one social media platform emerges ahead of the rest as a means of connecting with young voters. In this cycle, all signs point to TikTok, but is campaigning on TikTok even worth it. Bloomberg's Alex Barrinka has done the hands on and scientific reporting of examining Katie Porter's campaign for a run for the Senate seat right here in California, which did rely heavily on TikTok.

The company's multi billion dollar bet marks its entry into a red hot contest in China's EV market, which is led, of course by Tesla and BYD plus. Legislation that would force TikTok's Chinese parent to sell itself. All face of ban in the US is picking up speeding Congress, posing a dilemma for Republican lawmakers after former President Donald Trump reversed his previous stance and suggested the app should not be banned, after saying all young TikTok users would quote go crazy without it. Let's stick with TikTok, and let's turn to its current place in the political landscape. Every election cycle, one social media platform emerges ahead of the rest as a means of connecting with young voters. In this cycle, all signs point to TikTok, but is campaigning on TikTok even worth it. Bloomberg's Alex Barrinka has done the hands on and scientific reporting of examining Katie Porter's campaign for a run for the Senate seat right here in California, which did rely heavily on TikTok.

Explain your epidology, Alex.

Explain your epidology, Alex.

Yeah, So, I looked at Katie Porter and opponent Adam Shift, who was the front market runner, and their performance on TikTok. Porter is known as kind of a below of TikToker. Her engagement rates are better than even the best influencers, so I wanted to see how that played out in the open race for the Senate primary, which goes to the top two vote getters regardless of party. While on TikTok, Katie Porter well outperformed out of shift. She posted half as many videos but had twice as many views total. Her engagement rates were stellar, and going into the primary in early March, she was pulling incredibly well with young voters. The vast majority of voters under thirty preferred Porter. The problem with campaigning on social media was laid bare though with the results. Porter came in third, which means she will not be on the ballot in November. Why ed, Well, those young people on TikTok didn't show up to the polls. Only ten percent of voters were under the age of thirty in the primary, forty seven percent were over the age of sixty five, And Ed, I just don't know if those folks are spending a lot of their time on TikTok.

Yeah, So, I looked at Katie Porter and opponent Adam Shift, who was the front market runner, and their performance on TikTok. Porter is known as kind of a below of TikToker. Her engagement rates are better than even the best influencers, so I wanted to see how that played out in the open race for the Senate primary, which goes to the top two vote getters regardless of party. While on TikTok, Katie Porter well outperformed out of shift. She posted half as many videos but had twice as many views total. Her engagement rates were stellar, and going into the primary in early March, she was pulling incredibly well with young voters. The vast majority of voters under thirty preferred Porter. The problem with campaigning on social media was laid bare though with the results. Porter came in third, which means she will not be on the ballot in November. Why ed, Well, those young people on TikTok didn't show up to the polls. Only ten percent of voters were under the age of thirty in the primary, forty seven percent were over the age of sixty five, And Ed, I just don't know if those folks are spending a lot of their time on TikTok.

I go from being the host of the technology shows being the one time political reporter, and I was up on Super Tuesday. Hear at the desk covering California.

I go from being the host of the technology shows being the one time political reporter, and I was up on Super Tuesday. Hear at the desk covering California.

Is so right?

Is so right?

There are the same number of voters in California over age sixty five as under thirty five. The difference is the under thirty fives didn't show up, and in Katie Porter's case, TikTok didn't work. But clearly it has a place in this election, right And I think there's about one hundred and seventy million US users of TikTok. I think I'm right in saying Alex So just put that into perspective here in the context of this bill that's playing out in DC.

There are the same number of voters in California over age sixty five as under thirty five. The difference is the under thirty fives didn't show up, and in Katie Porter's case, TikTok didn't work. But clearly it has a place in this election, right And I think there's about one hundred and seventy million US users of TikTok. I think I'm right in saying Alex So just put that into perspective here in the context of this bill that's playing out in DC.

There are and it really kind of this this primary lays bear also a pain point of the Democrats. They really need young voters to show up. They showed up in hordes for Biden. They showed up in the midterms and the last cycle and stopped that prophesized red wave. So for those one hundred and seventy million Americans, forty three percent of them say they often get their news on TikTok. So this is certainly a place for politicians to spend their time because those traditional TV AD dollars, they're looking away from those to reach younger voters. I think the important thing in November, particularly for a camp like Biden who's now on TikTok with a campaign account is not only reaching them, not only speaking the Internet language like Katie Porter was so good at with memes and references to pop culture, but also getting those folks to not just agitate online but get them into the polls. Bridging that gap is what political experts and digital strategists told me is going to be the absolute hardest thing, And for Biden in particular, as he battles some of the narrative around his age, TikTok seems to be a place where he can kind of be relatable, be authentic, be a candidate.

There are and it really kind of this this primary lays bear also a pain point of the Democrats. They really need young voters to show up. They showed up in hordes for Biden. They showed up in the midterms and the last cycle and stopped that prophesized red wave. So for those one hundred and seventy million Americans, forty three percent of them say they often get their news on TikTok. So this is certainly a place for politicians to spend their time because those traditional TV AD dollars, they're looking away from those to reach younger voters. I think the important thing in November, particularly for a camp like Biden who's now on TikTok with a campaign account is not only reaching them, not only speaking the Internet language like Katie Porter was so good at with memes and references to pop culture, but also getting those folks to not just agitate online but get them into the polls. Bridging that gap is what political experts and digital strategists told me is going to be the absolute hardest thing, And for Biden in particular, as he battles some of the narrative around his age, TikTok seems to be a place where he can kind of be relatable, be authentic, be a candidate.

For those voters.

For those voters.

Again, he's going to have to clear some of the bars to get them to not just vote with their fingers, with their likes and comments, but to get on their feet and head out to the polls.

Again, he's going to have to clear some of the bars to get them to not just vote with their fingers, with their likes and comments, but to get on their feet and head out to the polls.

Bloomberg A xiety's for Rinkov.

Bloomberg A xiety's for Rinkov.

I really recommend you read that reporting on Katie Porter on Bloomberg.

I really recommend you read that reporting on Katie Porter on Bloomberg.

Coming up on the show, we're going to.

Coming up on the show, we're going to.

Take the pulse of the IPO market and Reddit with Raymaker Securities Greg Martin.

Take the pulse of the IPO market and Reddit with Raymaker Securities Greg Martin.

Let's check a look of the markets.

Let's check a look of the markets.

These are your major indices that we're looking at, and I think the story is after we got that hot CPI print markets and traders were braced for the worst case scenario, but in reality, nothing's really changed. The market is still betting that a first rate cut would come in June, if at all. And you look at the NASDAK one hundreds of example slight outperformance relative d S and P five hundred. A big part of that, as we know, is Oracle and it's strong earnings. This is Bloomberg Technology. Welcome back to Bloomberg Technology, Ed Ludlow here in San Francisco, Okay. Reddit's IPO is still the talk of well Reddit. Last night the company posted an ama or in this case and our ask me almost anything, and in it, reddit admins invited redditors to ask questions to the CEO, COO, and CFO through the end of March twelfth. Reddit then plans to take a selection of the highest up voted posts and respond to them on March eighteenth in a video, because legally it can't respond to them in the comments section.

These are your major indices that we're looking at, and I think the story is after we got that hot CPI print markets and traders were braced for the worst case scenario, but in reality, nothing's really changed. The market is still betting that a first rate cut would come in June, if at all. And you look at the NASDAK one hundreds of example slight outperformance relative d S and P five hundred. A big part of that, as we know, is Oracle and it's strong earnings. This is Bloomberg Technology. Welcome back to Bloomberg Technology, Ed Ludlow here in San Francisco, Okay. Reddit's IPO is still the talk of well Reddit. Last night the company posted an ama or in this case and our ask me almost anything, and in it, reddit admins invited redditors to ask questions to the CEO, COO, and CFO through the end of March twelfth. Reddit then plans to take a selection of the highest up voted posts and respond to them on March eighteenth in a video, because legally it can't respond to them in the comments section.

Here's the thing.

Here's the thing.

As of this morning, the most upvoted post by redditors posed this question quote the general consensus vibe among Reddit users about the IPO and what it portends for the future of the site seems to be extremely negative.

As of this morning, the most upvoted post by redditors posed this question quote the general consensus vibe among Reddit users about the IPO and what it portends for the future of the site seems to be extremely negative.

Why do you think that is? Question mark?

Why do you think that is? Question mark?

It speaks to the historically combative relationship redditors have on the site. And remember, redditors are going to be able to claim eight percent of the shares on offer in reddits IPO. Let's talk about the listing with Greg Martin, co founder and managing director of Rainmaker Securities.

It speaks to the historically combative relationship redditors have on the site. And remember, redditors are going to be able to claim eight percent of the shares on offer in reddits IPO. Let's talk about the listing with Greg Martin, co founder and managing director of Rainmaker Securities.

Let's start with.

Let's start with.

Ba greg reaction to the idea that this social media company is trying to market eight percent of the offering to redditors who don't seem to like the company offering them.

Ba greg reaction to the idea that this social media company is trying to market eight percent of the offering to redditors who don't seem to like the company offering them.

Well, thank you for having me ed and good to see again. You know it's smart. Clearly, there's a risk that Reddit sees with you know, just being a commercial enterprise at all, and now you know, selling themselves, you know, as a public company and you know, trying to maximize for profits.

Well, thank you for having me ed and good to see again. You know it's smart. Clearly, there's a risk that Reddit sees with you know, just being a commercial enterprise at all, and now you know, selling themselves, you know, as a public company and you know, trying to maximize for profits.

It's kind of.

It's kind of.

Violates, you know, the relationship that they have with their users, who contribute a vast amount of content for free, and now they're potentially you know, the commercialization becomes a risk factor. And so how do they mitigate that risk. They make their users and their content generators part of the company.

Violates, you know, the relationship that they have with their users, who contribute a vast amount of content for free, and now they're potentially you know, the commercialization becomes a risk factor. And so how do they mitigate that risk. They make their users and their content generators part of the company.

They give them an economic incentive to say, you.

They give them an economic incentive to say, you.

Know, positive things about Reddit, because you know, now they're hopefully going to be i PO share owners, and they're going to be motivated to you know, speak well of Reddit.

Know, positive things about Reddit, because you know, now they're hopefully going to be i PO share owners, and they're going to be motivated to you know, speak well of Reddit.

So I think it's smart in what they're doing.

So I think it's smart in what they're doing.

But there's still a risk that that the Reddit backlash, you know, from people who don't own shares, or are people who you know, shirk the opportunity to own shares because they want to remain on this you know, bohemian community. There's still that risk. But I think it's smart what Reddit is doing.

But there's still a risk that that the Reddit backlash, you know, from people who don't own shares, or are people who you know, shirk the opportunity to own shares because they want to remain on this you know, bohemian community. There's still that risk. But I think it's smart what Reddit is doing.

I've been reflecting in the last twenty four forty eight hours on the timing of all of this. Now, I remember back in twenty twenty one when they confidentially filed. Twenty twenty one was like the banner year for the USIPO market, and I just wonder how you frame the timing of whether they missed the boat or actually they were right to wait until this point.

I've been reflecting in the last twenty four forty eight hours on the timing of all of this. Now, I remember back in twenty twenty one when they confidentially filed. Twenty twenty one was like the banner year for the USIPO market, and I just wonder how you frame the timing of whether they missed the boat or actually they were right to wait until this point.

Yeah.

Yeah.

Well, I mean, listen, it would have been it would have been great if they could have gone out, you know, maybe in twenty nineteen, twenty twenty, and you know, had a few years of the zero interest rate environment that we had and and sort of you know, shored things up, short up their after market performance. But I think going public at the end of twenty one would have been a big mistake. Obviously twenty twenty two was a significant down year. I think their value would have been hammered. They would have lost all of the halo effect of being a new public company. They were clearly, you know, way behind in terms of revenues at that point. They didn't have an AI story like they're trying to really tell now to beep up their valuation. So I think it's a good thing that they didn't go public.

Well, I mean, listen, it would have been it would have been great if they could have gone out, you know, maybe in twenty nineteen, twenty twenty, and you know, had a few years of the zero interest rate environment that we had and and sort of you know, shored things up, short up their after market performance. But I think going public at the end of twenty one would have been a big mistake. Obviously twenty twenty two was a significant down year. I think their value would have been hammered. They would have lost all of the halo effect of being a new public company. They were clearly, you know, way behind in terms of revenues at that point. They didn't have an AI story like they're trying to really tell now to beep up their valuation. So I think it's a good thing that they didn't go public.

Then.

Then.

I think the markets are more favorable now for more of a long term successful story, and I think they're going to price their IPO at a much more reasonable valuation now than they would have in twenty twenty one.

I think the markets are more favorable now for more of a long term successful story, and I think they're going to price their IPO at a much more reasonable valuation now than they would have in twenty twenty one.

I want to talk about the valuation, but I also do want to talk about AI. You said that they're now telling the story. That story is essentially what we could do is license the content to those who want the data to train large language models or foundation models. How does that sell to somebody deciding whether or not to buy into an IPO.

I want to talk about the valuation, but I also do want to talk about AI. You said that they're now telling the story. That story is essentially what we could do is license the content to those who want the data to train large language models or foundation models. How does that sell to somebody deciding whether or not to buy into an IPO.

Well, that's the million dollar question.

Well, that's the million dollar question.

There's there's no doubt that the company today is ninety eight percent revenue advertising revenue. So it's a media company and it should trade more like a pinterest or a Snapchat, but they are trying to trying to push the narrative to sell more like an AI data company. They do have a lot of proprietary data that's this user generated content around various interest groups, whether it's stocks or cars or all kinds of interest groups, so that they do have a lot of content that their users are generating and it's proprietary. And so they've done deals already with Google. They've talked about you know, two hundred million of sort of this data revenue over the next three years, including us you know, around a sixty million dollar deal with Google. So they do have actual revenue associated with this you know AI training, you know model, you know the AI coming onto their site, you know, crawling through their data and training itself. So there is a there is a story there, but it also again runs the risk of inflaving their users who are like, hey, you're selling my data, You're.

There's there's no doubt that the company today is ninety eight percent revenue advertising revenue. So it's a media company and it should trade more like a pinterest or a Snapchat, but they are trying to trying to push the narrative to sell more like an AI data company. They do have a lot of proprietary data that's this user generated content around various interest groups, whether it's stocks or cars or all kinds of interest groups, so that they do have a lot of content that their users are generating and it's proprietary. And so they've done deals already with Google. They've talked about you know, two hundred million of sort of this data revenue over the next three years, including us you know, around a sixty million dollar deal with Google. So they do have actual revenue associated with this you know AI training, you know model, you know the AI coming onto their site, you know, crawling through their data and training itself. So there is a there is a story there, but it also again runs the risk of inflaving their users who are like, hey, you're selling my data, You're.

Having an AI train on me, and I'm not getting paid for it.

Having an AI train on me, and I'm not getting paid for it.

So there's there's a risk of that strategy as well, But I think they're trying to get away from the just being a pure advertising revenue narrative, and I think it's a good strategy if they want to lift their valuation.

So there's there's a risk of that strategy as well, But I think they're trying to get away from the just being a pure advertising revenue narrative, and I think it's a good strategy if they want to lift their valuation.

Okay, so valuation at the upper end of the range thirty four dollars a share on a diluted basis, taking into account RSUs and whatnot. Six point four billion. How marketable is that? You know, people pay a lot of attention to a headline figure on valuation.

Okay, so valuation at the upper end of the range thirty four dollars a share on a diluted basis, taking into account RSUs and whatnot. Six point four billion. How marketable is that? You know, people pay a lot of attention to a headline figure on valuation.

Yeah.

Yeah.

Well, the company did about eight hundred million of revenue last year, grew about twenty percent, so you know, kind of pedestrian growth. Ninety eight percent of that revenue is advertising. If you just were to apply a you know, five to seven x multiple to that, which is where their comps Pinterest and Snapchat, would you know, sort of trade in that range, you'd come up with a four to six billion dollar valuation. So six at the very high end, and frankly probably should be closer to five. We're seeing you know, trades on our platform, you know, at the four point eight to five billion rangeing on the private market before.

Well, the company did about eight hundred million of revenue last year, grew about twenty percent, so you know, kind of pedestrian growth. Ninety eight percent of that revenue is advertising. If you just were to apply a you know, five to seven x multiple to that, which is where their comps Pinterest and Snapchat, would you know, sort of trade in that range, you'd come up with a four to six billion dollar valuation. So six at the very high end, and frankly probably should be closer to five. We're seeing you know, trades on our platform, you know, at the four point eight to five billion rangeing on the private market before.

They went hit the road this week.

They went hit the road this week.

So I think that it's a stretch and again, I think it's a question of whether the market will buy into this emerging you know, data AI story that they're trying to tell. They do have some contracts, they do have some revenue, and in order to you know, push clear of a traditional social media multiple, that's what the market's going to have to believe. And that's why you know, they speak up of Sam Altman, you know, with his investment and him being involved with the company, and there's a lot around the AI story in order to push that multiple up. But I think it's going to be a challenge.

So I think that it's a stretch and again, I think it's a question of whether the market will buy into this emerging you know, data AI story that they're trying to tell. They do have some contracts, they do have some revenue, and in order to you know, push clear of a traditional social media multiple, that's what the market's going to have to believe. And that's why you know, they speak up of Sam Altman, you know, with his investment and him being involved with the company, and there's a lot around the AI story in order to push that multiple up. But I think it's going to be a challenge.

I did note that I don't think there's a single mention of Alexis o'hanian, one of the other co founders in the S one, and when he's next on the show, I'm certainly going to ask him about that. Greg Martin, co founder managing director Raymaker Securities, always knows the pulse of what's going on in the ground. All right, let's get some news. Venture capital firm Excel is backing an AIS startup that's using the technology to kill finance paperwork, Nananetes, which uses artificial intelligence to help businesses square accounts and manage budgets, raised twenty nine million dollars in an early round led by Excel India, Y Combinator and Elevation Capital, and others took part in the Series B round, which brings the San Francisco based startups total funding to forty million dollars. Let's talk a little bit more about startups and venture with Selil Deshpande on today's VC Spotlight. He is the founder and general partner of Uncorrelated Ventures, which raised a new three hundred and fifteen million dollar fund just a few weeks ago to focus on software and crypto. And we'd point out that for a solo GP, that's a pretty big chunk of change. Two focuses software crypto, which is the bigger focus.

I did note that I don't think there's a single mention of Alexis o'hanian, one of the other co founders in the S one, and when he's next on the show, I'm certainly going to ask him about that. Greg Martin, co founder managing director Raymaker Securities, always knows the pulse of what's going on in the ground. All right, let's get some news. Venture capital firm Excel is backing an AIS startup that's using the technology to kill finance paperwork, Nananetes, which uses artificial intelligence to help businesses square accounts and manage budgets, raised twenty nine million dollars in an early round led by Excel India, Y Combinator and Elevation Capital, and others took part in the Series B round, which brings the San Francisco based startups total funding to forty million dollars. Let's talk a little bit more about startups and venture with Selil Deshpande on today's VC Spotlight. He is the founder and general partner of Uncorrelated Ventures, which raised a new three hundred and fifteen million dollar fund just a few weeks ago to focus on software and crypto. And we'd point out that for a solo GP, that's a pretty big chunk of change. Two focuses software crypto, which is the bigger focus.

Infrastructure software is a larger focus. That's eighty percent. Why crypto is twenty percent, Well, partly it's my background. It's all been in infrastructure software, and a lot of crypto is infrastructure software. Not all of it is, but portions of it are just decentralized infrastructure software.

Infrastructure software is a larger focus. That's eighty percent. Why crypto is twenty percent, Well, partly it's my background. It's all been in infrastructure software, and a lot of crypto is infrastructure software. Not all of it is, but portions of it are just decentralized infrastructure software.

How much I don't know how to put this feel good? Does spaces like infrastructure software SaaS get from what's happening in AI? As far as I can tell, the very basic pitch for AI is that it is a value add to existing software platforms.

How much I don't know how to put this feel good? Does spaces like infrastructure software SaaS get from what's happening in AI? As far as I can tell, the very basic pitch for AI is that it is a value add to existing software platforms.

Well.

Well.

AI is a subset of infrastructure software, so it gets a lot of feel good value from AI. Infrastructure software is just software that is not application software. So AI is very, very mean friendly right now, it's the principally, it's the sentiment is too positive.

AI is a subset of infrastructure software, so it gets a lot of feel good value from AI. Infrastructure software is just software that is not application software. So AI is very, very mean friendly right now, it's the principally, it's the sentiment is too positive.

It's a hot mess.

It's a hot mess.

Where I'd like to be investing is in the tools and tool chains layer, but they are just too many companies, it's too crowded, evaluations are high. The lower layer hardware is off limits to venture investors, right that's the realm of larger companies. The layer above that, the foundation models. Those are also tough to invest in because they're more like operating systems, which are tougher to monetize, than like databases, which are easier to monetize. So the third layer, tools and tool chains, is the best area for venture investors to be investing in, but it's a hot mess. The fourth layer, which is just using AI or leveraging AI, that's been so far a bit easier for me to invest.

Where I'd like to be investing is in the tools and tool chains layer, but they are just too many companies, it's too crowded, evaluations are high. The lower layer hardware is off limits to venture investors, right that's the realm of larger companies. The layer above that, the foundation models. Those are also tough to invest in because they're more like operating systems, which are tougher to monetize, than like databases, which are easier to monetize. So the third layer, tools and tool chains, is the best area for venture investors to be investing in, but it's a hot mess. The fourth layer, which is just using AI or leveraging AI, that's been so far a bit easier for me to invest.

He keeps saying that it's a hot mess. Be an opportunity or a way for you to navigate the hot mess because you've raised a sizeable fund and the LPs must back your vision to invest in that layer.

He keeps saying that it's a hot mess. Be an opportunity or a way for you to navigate the hot mess because you've raised a sizeable fund and the LPs must back your vision to invest in that layer.

Yeah, there are a lot of great opportunities. There are just so many companies that it's tough to weed through all of them and find the right ones. And when you find the right ones, the valuations are very high, the rounds are very hot, they close fast, so it's just tougher to prosecute. I do have half a dozen or so seed investments in that area, but we'll see how well they do.

Yeah, there are a lot of great opportunities. There are just so many companies that it's tough to weed through all of them and find the right ones. And when you find the right ones, the valuations are very high, the rounds are very hot, they close fast, so it's just tougher to prosecute. I do have half a dozen or so seed investments in that area, but we'll see how well they do.

But that's a good point.

But that's a good point.

So my next question would have been, well, at what stage and where geographically are you finding my success?

So my next question would have been, well, at what stage and where geographically are you finding my success?

Initially seed Series A, small checks and Series B, and geographically US or world markets with an exception for India.

Initially seed Series A, small checks and Series B, and geographically US or world markets with an exception for India.

The other focus of the fund is crypto, and I'm guessing crypto j and startups that they're working more likely on the underlying technology. Is that right, well as opposed to digital tokens themselves.

The other focus of the fund is crypto, and I'm guessing crypto j and startups that they're working more likely on the underlying technology. Is that right, well as opposed to digital tokens themselves.

Well, yes, although sometimes the only way to invest in the projects is to buy the token. Sometimes you buy equity right and eventually the equity converts to tokens. But yeah, to the extent that it is decentralized infrastructure. It's in scope for me. Not all of crypto is infrastructure, though.

Well, yes, although sometimes the only way to invest in the projects is to buy the token. Sometimes you buy equity right and eventually the equity converts to tokens. But yeah, to the extent that it is decentralized infrastructure. It's in scope for me. Not all of crypto is infrastructure, though.

Three hundred and fifteen million dollars is a sizeable fund. And I'm really interested in this economic environment, in this rates environment, what the LPs look like. You know where you were able to raise those funds from and how quickly you were able to do it.

Three hundred and fifteen million dollars is a sizeable fund. And I'm really interested in this economic environment, in this rates environment, what the LPs look like. You know where you were able to raise those funds from and how quickly you were able to do it.

They were mostly institutional, so seventy seventy five percent is institutional, and there's a long tail of family offices and individuals. For the rest. There are four sovereign wealth funds. There's one university endowment. The fundraising was not too bad, it was it was pretty smooth.

They were mostly institutional, so seventy seventy five percent is institutional, and there's a long tail of family offices and individuals. For the rest. There are four sovereign wealth funds. There's one university endowment. The fundraising was not too bad, it was it was pretty smooth.

Let's really quickly go back to AI.

Let's really quickly go back to AI.

You expressed your concerns about AI valuations right now, or at least the impact of the interest in AI on valuations. Do you feel like that that is something that will continue throughout the year or investors have kind of had their fill of the high multiple AI names that they've gone into.

You expressed your concerns about AI valuations right now, or at least the impact of the interest in AI on valuations. Do you feel like that that is something that will continue throughout the year or investors have kind of had their fill of the high multiple AI names that they've gone into.

AI is a huge long term opportunity, it's going to change everything. Everyone's going to leverage AI, and AI is available to everybody through an API call. But short term, I'm a little worried the positive sentiment makes me a little nervous and hoping for the trough of disillusionment to invest more. But I think beyond the traph of disillusionment, it'll it'll be you know, it'll be an upcrend again.

AI is a huge long term opportunity, it's going to change everything. Everyone's going to leverage AI, and AI is available to everybody through an API call. But short term, I'm a little worried the positive sentiment makes me a little nervous and hoping for the trough of disillusionment to invest more. But I think beyond the traph of disillusionment, it'll it'll be you know, it'll be an upcrend again.

An AI landscape that is a hot mess and underpinned by a trough of disillusionment. Salil Deshpande, founder and general partner of Uncorrelated Adventures, really appreciate that conversation.

An AI landscape that is a hot mess and underpinned by a trough of disillusionment. Salil Deshpande, founder and general partner of Uncorrelated Adventures, really appreciate that conversation.

Let's get a quick update.

Let's get a quick update.

Earlier in the show, we reported on open AI's court filing calling must suit against them incoherent. During the show, Musk emailed me his response to say, quote, open ai is a lie.

Earlier in the show, we reported on open AI's court filing calling must suit against them incoherent. During the show, Musk emailed me his response to say, quote, open ai is a lie.

And that's all that. His response to the story.

And that's all that. His response to the story.

Said, Rent the Runway, a platform where customers can subscribe rent items a la carte and shop resale from hundreds of designer brands, is gifting one million dollars in free subscriptions Throughout this Women's History Month, two women who have recently reached a new milestone in their careers, such as a promote job, successful launch, or new campaign.

Said, Rent the Runway, a platform where customers can subscribe rent items a la carte and shop resale from hundreds of designer brands, is gifting one million dollars in free subscriptions Throughout this Women's History Month, two women who have recently reached a new milestone in their careers, such as a promote job, successful launch, or new campaign.

Here are the details.

Here are the details.

CEO Jennifer Hyman, and this is also a collaboration with LinkedIn on the platform side, just explain why you're doing it.

CEO Jennifer Hyman, and this is also a collaboration with LinkedIn on the platform side, just explain why you're doing it.

Well.

Well.

I recently had an experience where I had my third child, and it was fascinating because I received more personal congratulations and love than when I ipo'd Runt the Runway back in kind of twenty twenty one, and I started thinking about the fact that within the context of our culture, it is kind of part of the game that women feel more comfortable sharing their personal milestones and personal accomplishments than their professional ones. And given that we live in a world that the more senior you get in an organization, the more your ability to rise is based on your brand, the stories that you yourself tell about yourself, and the stories that others tell about you. This is a campaign to encourage more women to feel comfortable sharing their professional accomplishments on a platform like LinkedIn where it matters.

I recently had an experience where I had my third child, and it was fascinating because I received more personal congratulations and love than when I ipo'd Runt the Runway back in kind of twenty twenty one, and I started thinking about the fact that within the context of our culture, it is kind of part of the game that women feel more comfortable sharing their personal milestones and personal accomplishments than their professional ones. And given that we live in a world that the more senior you get in an organization, the more your ability to rise is based on your brand, the stories that you yourself tell about yourself, and the stories that others tell about you. This is a campaign to encourage more women to feel comfortable sharing their professional accomplishments on a platform like LinkedIn where it matters.

Jen, as you know and as I've disclosed on this program before, we are a Rent the Runway household. My wife is a longtime subscriber, user, customer of Rent the Runway. But I think back to a year ago when you're on the show in particularly in the summer of twenty twenty three, you cut back on incentives and discounts like this, and the logic you outlined at the time was that those new users or subscribers that sign up in the face of lower discount are likely to stay longer. So what's the strategy here with this incentive in the context of subscriber growth.

Jen, as you know and as I've disclosed on this program before, we are a Rent the Runway household. My wife is a longtime subscriber, user, customer of Rent the Runway. But I think back to a year ago when you're on the show in particularly in the summer of twenty twenty three, you cut back on incentives and discounts like this, and the logic you outlined at the time was that those new users or subscribers that sign up in the face of lower discount are likely to stay longer. So what's the strategy here with this incentive in the context of subscriber growth.

Our brand has always been known as really a power tool for working women. So one of the main reasons why someone signs up for rent the Runway is to feel empowered and confident every single day at work. So the fact now that women are going to be referring their colleagues, their peers, their friends for an accolade that they recently deserve in their career and to receive a Rent the Runway subscription, we feel that this is exactly how we want to bring our brand kind of back into the universe and create momentum around our brand being a brand that supports professional women.

Our brand has always been known as really a power tool for working women. So one of the main reasons why someone signs up for rent the Runway is to feel empowered and confident every single day at work. So the fact now that women are going to be referring their colleagues, their peers, their friends for an accolade that they recently deserve in their career and to receive a Rent the Runway subscription, we feel that this is exactly how we want to bring our brand kind of back into the universe and create momentum around our brand being a brand that supports professional women.

When I posted on social media you were coming on the show, a lot of people brought up a Newly and they point out that this is a younger platform, but it has more.

When I posted on social media you were coming on the show, a lot of people brought up a Newly and they point out that this is a younger platform, but it has more.

Subscribers than Rent the Runway has, and they.

Subscribers than Rent the Runway has, and they.

Ask if you've learned any lessons from Newly and taken anything from their experience that you think you might now apply to Rent the Runway.

Ask if you've learned any lessons from Newly and taken anything from their experience that you think you might now apply to Rent the Runway.

I think that it's incredible that a market that we created around renting clothes is now a real market in the US, that millions of women per year are renting fashion subscribing to fashion, and there are different platforms and different choices that provide different kinds of designer brands and different aesthetics. Rent the Runway is about catering to a woman who is accelerating in her career, who also you know, wants to socialize, who is also traveling, who's trying to optimize her own time. So I think that really focusing in on who our core customer is this campaign being a exemplifier of who that customer is is a critical part of us continuing to grow and accelerate. I think Newly has done a really great job at targeting, you know, a significantly younger customer than Rent the Runway.

I think that it's incredible that a market that we created around renting clothes is now a real market in the US, that millions of women per year are renting fashion subscribing to fashion, and there are different platforms and different choices that provide different kinds of designer brands and different aesthetics. Rent the Runway is about catering to a woman who is accelerating in her career, who also you know, wants to socialize, who is also traveling, who's trying to optimize her own time. So I think that really focusing in on who our core customer is this campaign being a exemplifier of who that customer is is a critical part of us continuing to grow and accelerate. I think Newly has done a really great job at targeting, you know, a significantly younger customer than Rent the Runway.

Jim, what's the AI story. We've Rent the Runway.

Jim, what's the AI story. We've Rent the Runway.

So AI is really an important part of how women search for product on our site. We launched AI enabled kind of search and styling earlier in the year that enable women to have a long tail use case like what should I wear to the tailors Swift concert and to get back a whole host of suggestions that.

So AI is really an important part of how women search for product on our site. We launched AI enabled kind of search and styling earlier in the year that enable women to have a long tail use case like what should I wear to the tailors Swift concert and to get back a whole host of suggestions that.

Are kind of tailor made for her.

Are kind of tailor made for her.

So you'll see us continuing to iterate on styling in general and search because part of our platform is about offering discovery and enabling women to wear things that they wouldn't otherwise buy. So AI is really a perfect compliment to that.

So you'll see us continuing to iterate on styling in general and search because part of our platform is about offering discovery and enabling women to wear things that they wouldn't otherwise buy. So AI is really a perfect compliment to that.

Jen the final question from our audience, it's been tough for rent the wrong way. The shares have had a hard run. Would you consider taking the company private to go away and kind of go back to growth.

Jen the final question from our audience, it's been tough for rent the wrong way. The shares have had a hard run. Would you consider taking the company private to go away and kind of go back to growth.

So our focus is on driving the business to free cash flow, profitability, and on making the right long term decisions for this business. I think that what has really been proven out over the last few years is that Rendel is a real market. It is growing far quicker than the overall fashion industry. There's millions of women who now are comfortable and confident with signing up for a subscription to fashion that was not the case even five years ago. And so it's our responsibility to ensure that this is a profitable, sustainable business and that we take advantage of the market that we were a part in creating rend.

So our focus is on driving the business to free cash flow, profitability, and on making the right long term decisions for this business. I think that what has really been proven out over the last few years is that Rendel is a real market. It is growing far quicker than the overall fashion industry. There's millions of women who now are comfortable and confident with signing up for a subscription to fashion that was not the case even five years ago. And so it's our responsibility to ensure that this is a profitable, sustainable business and that we take advantage of the market that we were a part in creating rend.

The Runway CEO and founder Jennifer Hyman, great to have you on the program.

The Runway CEO and founder Jennifer Hyman, great to have you on the program.

Thank you.

Thank you.

That does it for this edition of Bloomberg Technology.

That does it for this edition of Bloomberg Technology.

What a show it's been.

What a show it's been.

Check out the pod where you get your podcasts from San Francisco.

Check out the pod where you get your podcasts from San Francisco.

This is Bloomberg Technology.

This is Bloomberg Technology.