Oracle's Biggest Gain Since 2022 and Bitcoin's Record Rise | Bloomberg Technology

Summary

This Bloomberg Technology transcript covers a range of topics including Oracle's strong earnings and cloud business growth, the debate around Bitcoin's record-breaking run, the latest on Elon Musk's lawsuit against OpenAI, and the impact of AI on various industries. Additionally, it discusses the IPO market, Reddit's user backlash, and the rise of AI startups in the venture capital landscape. The conversation also touches on Rent the Runway's strategy and the role of AI in their platform.

Takeaways

• 📈 Oracle reported strong earnings with a 20.5% top-line growth in cloud business, driven by increased demand for cloud computing power and AI training models.
• 🚀 Bitcoin continues its record-breaking run, with $2.7 billion flowing into crypto assets last week, and the cryptocurrency hovering near its all-time high.
• 🤖 OpenAI faces a lawsuit from Elon Musk, with the billionaire's claims being described as 'convoluted' and 'incoherent' by the AI organization.
• 🌐 Nvidia is under fire with allegations that it built its models on a library of pirated digital e-books, leading to a lawsuit involving dozens of authors.
• 💡 The Riksbank governor expressed a desire to minimize Bitcoin's influence in the Swedish financial system, citing concerns about its impact on consumers.
• 📊 The IPO market is in focus with Reddit's upcoming listing, which plans to offer a portion of the offering to its users, potentially mitigating backlash from the community.
• 🌟 TikTok's political influence is highlighted by its role in connecting with young voters, although the actual voter turnout may not align with the platform's user demographics.
• 💼 The venture capital firm Excel is backing an AI startup using the technology to eliminate finance paperwork, raising $29 million in an early round.
• 📈 The AI investment landscape is described as a 'hot mess' with high valuations and crowded markets, but there are opportunities for venture investors in the tools and toolchains layer.
• 🎉 Rent the Runway pledges $1 million to celebrate career wins for women in honor of Women's History Month, gifting free subscriptions to women who have reached a milestone in their career.

Q & A

What is the main focus of the Bloomberg Technology show with Caroline Hyde and Ed Ludlow?

The main focus of the show is to discuss the latest news and trends in technology, including earnings reports, cryptocurrency developments, and innovations in Silicon Valley and beyond.

How did Oracle's cloud business performance contribute to their recent earnings report?

Oracle's cloud business booked more business than expected, attributed to the high demand for cloud computing power, AI training, models, and mass digitalization, which led to a 20.5% topline growth in the cloud business.

What is the significance of the CPI print in driving the narrative in the equity space?

The hotter-than-expected CPI print initially led to a negative reaction in the equity space, as it influenced the expectations around the Federal Reserve's potential rate cut, which was believed to not be coming until June.

How does Oracle's remaining performance obligation (RPO) impact investor confidence?

Oracle's RPO, which is a backlog of signed business, has impressed the street as it indicates a substantial amount of future revenue that the company is contractually obligated to recognize.

What is the current stance of the central bank governor on Bitcoin's influence in the financial sector?

The central bank governor expressed a desire to minimize Bitcoin's influence and presence in the financial sector, citing concerns about its impact on consumers and the potential risks associated with holding such an asset.

What is the significance of the lawsuit against OpenAI filed by Elon Musk?

Elon Musk's lawsuit against OpenAI is based on claims that rest on convoluted and often incoherent factual premises. OpenAI's response in a court filing suggests that Musk's allegations are incorrect and that the case should be classified as a complex case to ensure a quick resolution.

What is the current state of Bitcoin in terms of its price and market sentiment?

Bitcoin is hovering near its all-time high, with a recent peak of 72,881 and investors eyeing a medium-term target of 80,000 U.S. dollars. The cryptocurrency has shown strong demand and significant capital inflows, indicating sustained momentum.

How is Rent the Runway addressing the challenge of subscriber growth and brand perception?

Rent the Runway is focusing on driving the business to free cash flow profitability and making long-term decisions for sustainable growth. They are also leveraging AI to enhance their search and styling features, aiming to offer a tailored experience for their core customer base of professional women.

What is the role of AI in Rent the Runway's platform?

AI plays a crucial role in enabling personalized search and styling for Rent the Runway's customers. It helps users find fashion items that suit their needs and preferences, contributing to the platform's goal of offering discovery and enabling women to wear items they might not otherwise buy.

How does the venture capital firm Uncorrelated Ventures approach investing in AI and crypto?

Uncorrelated Ventures focuses on infrastructure software and crypto, with an 80% emphasis on infrastructure software due to the founder's background in the field. They see AI as a subset of infrastructure software and are cautious about the current high valuations in the AI space, preferring to invest in tools and toolchains where they see more opportunity.

Outlines

00:00

📈 Market Reactions and Tech Earnings

The paragraph discusses the market reactions to a hotter-than-expected CPI print and the anticipation of a Federal Reserve rate cut. It highlights Oracle's significant earnings and cloud business growth, the impact of AI on technology companies, and the semiconductor industry's performance. The discussion also touches on Bitcoin's record-breaking run and the flow of funds to crypto assets.

05:00

🚀 Elon Musk Lawsuit and AI's Role in National Security

This section covers the latest lawsuit involving Elon Musk and OpenAI, with OpenAI's court filing suggesting that Musk's claims are based on convoluted and incoherent factual premises. The conversation delves into the importance of AI for national security and the potential risks of the discovery process in the lawsuit, which could expose sensitive AI-related information.

10:01

💰 Bitcoin's Momentum and Central Bank's Stance

The focus here is on Bitcoin's continued high value and the momentum it has maintained despite market pressures. The discussion includes insights into the potential for Bitcoin to reach new milestones and the varying perspectives of both bullish and bearish investors. Additionally, it covers the Swedish central bank governor's opinion on minimizing Bitcoin's influence in the financial sector and the historical context of institutional warnings about Bitcoin.

15:01

🌐 TikTok's Political Impact and Reddit's IPO

This segment examines the role of TikTok as a platform for political campaigning, particularly in the context of young voters. It discusses the performance of Katie Porter's campaign on TikTok and the eventual voter turnout in the primary elections. The conversation then shifts to Reddit's upcoming IPO, the community's reaction, and the potential implications of the company's shift towards commercialization and data monetization.

20:02

💼 Venture Capital and AI in Startups

The paragraph explores the venture capital landscape, focusing on the backing of an AI startup aimed at reducing finance paperwork. It also discusses the perspective of Salil Deshpande, founder and general partner of Unrelated Ventures, on investing in software and crypto, the challenges of navigating the 'hot mess' of the AI sector, and the opportunities in infrastructure software and AI applications.

25:07

👗 Celebrating Women's Achievements with Rent the Runway

This section features an interview with Rent the Runway's CEO, Jennifer Hyman, discussing the company's initiative to gift free subscriptions to women who have reached career milestones. The conversation covers the importance of professional accomplishments for women, the company's strategy for subscriber growth, the impact of AI on their platform, and the future direction of the business in the context of market trends and investor interests.

Keywords

💡Silicon Valley

Silicon Valley is a region in Northern California known for its high-tech innovation and development, being the hub of many start-up and global technology companies. In the context of the video, it represents the convergence point of innovation, money, and power, highlighting the area's significant role in the tech industry.

💡Oracle

Oracle Corporation is a multinational computer technology corporation that specializes in database software and technology, cloud engineered systems, and enterprise software products. In the video, Oracle's significant earnings and its cloud business growth are discussed, indicating its strong performance in the tech market.

💡Bitcoin

Bitcoin is a decentralized digital currency that operates without a central authority or single administrator, using blockchain technology. The term in the video refers to its record-breaking run and the substantial capital inflows into crypto assets, showcasing its continued relevance and growth in the financial market.

💡AI

Artificial Intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. In the video, AI is mentioned in relation to Oracle's cloud computing power and training models, as well as in the context of OpenAI and its legal disputes, highlighting AI's growing role in various tech applications and its potential legal and ethical considerations.

💡Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for implementing monetary policy. In the video, the Fed's potential rate cut is mentioned in the context of market reactions and economic indicators, emphasizing its influence on financial markets and investor sentiment.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on decentralized networks, such as blockchain technology. In the video, the focus is on Bitcoin's performance and the overall market sentiment towards cryptocurrencies, indicating their growing acceptance and the speculative interest they generate.

💡Elon Musk

Elon Musk is an entrepreneur and business magnate known for founding SpaceX, Tesla, Neuralink, and The Boring Company. In the video, Musk's lawsuit against OpenAI is discussed, highlighting his influence and the legal complexities surrounding AI technology and intellectual property.

💡NVIDIA

NVIDIA Corporation is an American multinational technology company that designs graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-a-chip units (SoCs) for the mobile computing and automotive market. In the video, NVIDIA is mentioned in relation to a lawsuit over the use of pirated digital e-books, indicating the company's involvement in legal disputes and the broader issues of intellectual property in technology.

💡Cloud Computing

Cloud computing is the delivery of various computing services—servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (the 'cloud') to offer faster innovation, flexible resources, and economies of scale. In the video, cloud computing is discussed as a critical component of Oracle's business growth, emphasizing its importance in the tech industry's infrastructure.

💡Equities

Equities refer to shares in a company that are held by investors, providing them with ownership in the company. In the video, equities are discussed in the context of market reactions to economic data and corporate earnings, indicating the influence of economic indicators and company performance on the stock market.

💡OpenAI

OpenAI is an artificial intelligence research laboratory that aims to ensure that artificial general intelligence (AGI) benefits all of humanity. In the video, OpenAI is mentioned in the context of a lawsuit and its importance in AI development, highlighting the organization's role in shaping the future of AI and its legal challenges.

Highlights

Oracle's cloud business unit performed better than expected, attributing the success to the increasing demand for cloud computing power, AI training, models, and mass digitalization.

Oracle has a significant backlog of business, which is impressive to investors as it indicates a strong pipeline of future revenue.

Oracle's cloud data centers in Virginia are running out of physical space, leading to plans to spend $10 billion on building more data centers around the country.

There is a growing sentiment that Oracle's cloud is particularly effective for training AI models, which are resource-intensive, fueling demand for their services.

OpenAI is facing a lawsuit from Elon Musk, with the company arguing that the lawsuit is based on convoluted and incoherent factual premises.

Nvidia is being sued for allegedly building their models on a library of pirated digital e-books, with dozens of authors suing the company.

Bitcoin continues to hover near its all-time high, with strong demand and large capital inflows supporting its value.

Grayscale Investment is looking to launch a clone of the world's largest Bitcoin fund, following more than $11 billion of outflows from itsGBTC fund.

There is a debate about the long-term trajectory of Bitcoin, with some investors eyeing a medium-term target of $80,000 per token.

The Riksbank Governor expressed a desire to minimize Bitcoin's influence and presence in the financial sector, citing concerns about its impact on consumers.

There is a growing interest in the technology behind cryptocurrencies, with a shift in focus towards the adoption and supply chains, rather than just price movements.

D.C. is becoming more informed about blockchain technology, recognizing its potential as a trusted technology for various applications, including data verification and traceability.

Reddit is planning to go public, with the company posting an AMA (Ask Me Anything) and inviting users to ask questions to the CEO and CFO.

Reddit's IPO is facing a negative consensus among its user base, with concerns about the commercialization of the platform and potential data trading.

Excel Ventures is backing an AI startup using the technology to eliminate finance paperwork, helping businesses square accounts and manage budgets.

Uncorrelated Ventures, a venture capital firm, raised a new $315 million fund to focus on software and crypto, with infrastructure software being the larger focus.

There is a concern about the high valuations in the AI sector, with some investors worried about the long-term sustainability of current multiples.

Rented the Runway, a fashion rental service, is gifting $1 million in free subscriptions to women who have reached a career milestone during Women's History Month.

Rented the Runway is focusing on AI-enabled search and styling to improve the user experience and offer tailored suggestions for clothing items.

The company is committed to ensuring the rental market for fashion remains profitable and sustainable, as it grows faster than the overall fashion industry.

Transcripts

FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER

COLLIDE IN SILICON VALLEY AND BEYOND THIS IS BLOOMBERG

TECHNOLOGY WITH CAROLINE HYDE AND AT THE.

ED: I'M AT THE THOUGH IN SAN FRANCISCO.

COMING UP WE WILL TALK EARNINGS

ABOUT -- AS ORACLES HAS THE BIGGEST EARNINGS AND YEARS.

BITCOIN CONTINUES HIS RECORD-BREAKING RUN AS TWO

POINT 7 BILLION FLOWDAN TO CRYPTO ASSETS LAST WEEK WE WILL

DISCUSS THAT WITH THE DELTA PLOT -- WE WILL DISCUSS THEM IN

SO MUCH MORE THROUGHOUT THE HOUR.

LET'S GET TO MARKETS, A HOTTER THAN EXPECTED CPI PRINT THAT

DROVE THE NARRATIVE. IN THE EQUITY SPACE IT WAS A

NEGATIVE REACTION AT FIRST. WE HAVEN'T CHANGED HER MIND ABOUT

THE IDEA THAT IF A RATE CUT IS COMING FROM THE FEDERAL RESERVE

IS NOT COMING UNTIL JUNE. WE ARE NOW UP BY A PERCENTAGE

POINT AND A LOT OF THE LEGWORK COMING FROM THE EARNINGS STORY.

SEMICONDUCTORS HIGHER. EVEN AS YOU SEE RATES CREEP I.

THE 10 YEAR YIELD WAS CREEPING UP AND BITCOIN IS DOWN 1.36%.

JUST ABOVE 71,000 U.S. DOLLARS PER TOKEN.

TALKING ABOUT THIS UPSIDE AND EQUITIES IS PROBABLY ORACLE

THAT ACCOUNTS FOR THAT.

THE STORY, 20 5% TOPLINE GROWTH IN THIS CLOUD BUSINESS.

IF YOU LOOK AT THE ANALYST KNOWN THERE IS AN AI DETAIL

WENT. LET'S GET RIGHT TO THE

CONVERSATION AND BRING FORTH BRODY, BLOOMBERG ORACLE CHIEF.

THE PERFORMANCE OF THE CLOUD UNIT, THAT WAS PRETTY GOOD.

>> THEY BOOKED A LOT MORE BUSINESS THAN ANYONE EXPECTED

IN THE EXECUTIVES ATTRIBUTED THAT TO THE CLOUD BUSINESS.

EVERYBODY NEEDS MORE CLOUD COMPUTING POWER, AI, TRAINING

MODELS AND MASS DIGITALIZATION. THERE'S NOT ENOUGH COMPUTER

POWER GOING AROUND. WE SHOULD SEE THAT TURN INTO

REVENUE IN THE COMING QUARTERS. ED:

ONE OF THE GREAT THINGS ABOUT YOU IS YOU CAN TAKE ANY

TECHNOLOGY COMPANY ON PAPER CAN BE A BIT DRY.

THE USE ALL THIS JARGON THAT WE DON'T UNDERSTAND AND IN

ORACLE'S CASE, REMAINING PERFORMANCE OBLIGATION.

IF ANYONE CALLED AND SAID THAT YOU WOULD FALL ASLEEP.

THIS IS A MIGHTY IMPRESSIVE BACKLOG OF BUSINESS IN THE

STREET IS PAYING ATTENTION.

BRODY: IT'S A BACKLOG, BUSINESS THAT

IS BEEN SIGNED. THE REASON IT IS A BACKLOG

BECAUSE THEY DON'T HAVE THE PHYSICAL SPACE.

THE CLOUD'S DATA CENTERS IN VIRGINIA AND THEY NEED TO BUILD

MORE OF THEM. IN THE NEXT YEAR THEY WILL

SPEND 10 BILLION BUILDING OUT THEIR DATA CENTER PRESENTS

AROUND THE COUNTRY. THINK OF THAT CAPEX COMPARED TO

TWO YEARS AGO. THAT'S GIVING INVESTORS

CONFIDENCE THAT THEY ARE BUILDING UP THEIR FOOTPRINT IN

RESPONSE TO CUSTOMER DEMAND. ED: I TALKED ABOUT THE AI TAILWIND

AND THAT IS WHAT THE BULLS SEE. BUT WHAT IS ORACLE STORY AND

HOW DO THEY FIT INTO WHAT'S GOING ON.

BRODY: THERE IS SOME REAL THIRD-PARTY

VOICES SAYING ORACLES CLOUD IS PARTICULARLY GOOD FOR TRAINING

THESE AI MODELS THAT ARE NOTORIOUSLY RESOURCE INTENSIVE.

WE'VE HEARD OF A LOT OF FOLKS GOING TO ORACLE TO TRAIN THEIR

MODELS AND THAT HIS AND FUELING SOME OF THIS DEMAND.

THERE IS SOME SKEPTICISM. BRETT WAS ON HILL YESTERDAY

SAYING THE CURRENT AMOUNT OF REVENUE AI WORKLOADS IS NOT

MASSIVE.

IN THE COMING YEAR AS THE AI BECOMES MAINSTREAM IN THE TECH

STOCK THAT WILL INCREASE. ED:

ORACLE, A REAL CONTRIBUTOR TO THE UPSIDE WE SEE AND EQUITIES

PARTICULARLY IN THE EQUITY SECTOR.

LET'S TURN TO ANOTHER TOP STORY. THE LATEST ELON MUSK LAWSUIT.

OPENAI IN A COURT FILING THAT THE BILLIONAIRES CLAIMS REST ON

CONVOLUTED, OFTEN INCOHERENT FACTUAL PREMISES.

THE SPRING IN BLOOMBERG'S AI REPORTER, RACHEL MUST. WHAT IS

OPEN AI TRYING TO SAY HERE ARE NORMAL PEOPLE SPEAK?

>> THEY ARE ECHOING T A NUMBER OF THINGS THAT THEY PUT UP IN A

BLOG POST FROM LAST WEEK AND INTERNAL MEMOS WE GOT A HOLD OF.

THEY ARE SAYING THERE WAS NO AGREEMENT FOR US TO DO WHAT YOU

SAID AND WHAT YOU'RE SAYING IS IN CORRECT -- INCORRECT.

YOUR ARGUMENT IS INCOHERENT AND FUNNY ABOUT THIS IS A

PROCEDURAL FILING. THEY WERE PUTTING IN THIS

FILING TO SAY WE WANT THIS COURT CASE TO BE CLASSIFIED, IS

KNOWN AS A COMPLEX CASE IN CALIFORNIA.

IT WOULD GIVE IT A TINY BIT OF TREATMENT BY A JUDGE THEY CAN

UNDERSTAND THIS STUFF AND GET IT DONE QUICKLY. ED:

ONE OF THE EARLY AI INVESTORS WAS ON THE SHOW IN ONE OF THE

THINGS HE WAS ARGUING FOR IS OPENAI IS CRITICALLY IMPORTANT

FROM A NATIONAL SECURITY STANDPOINT.

IF THEY WANT TO BE COMPETITIVE IN AI WE NEED TO SUPPORT OPENAI

IN DOING THAT AND ONE OF THE THING THEY DID WITH THIS FILING

IS TO SAY, IF WE GO THROUGH WITH THIS LAWSUIT THE DISCOVERY

PROCESS WILL GIVE AWAY ALL OF HER SEEKERS IN THE CONTEXT OF

AI.

>> THEY DID ARGUE THAT. TO BE FAIR, ONE COULD ARGUE

THAT ANY DISCOVERY PROCESS MIGHT HAVE A RISK OF BRINGING

UP THINGS YOU DON'T WANT SHARED WITH THE PUBLIC.

AS PART OF WHAT MAKES IT INTERESTING TO THE REST OF US.

HOPEFULLY WE WILL GET INTERESTING INFORMATION IN SOME

OF THE THINGS THEY WANT TO KEEP HER PRIORITY WILL BE CAP

KEPT PROPRIETARY. ED:

ANOTHER BIG STORY IN THE WORLD

OF TECHNOLOGY NVIDIA AND ANOTHER SAID

JOSH THEY ALLEGE NVIDIA BUILT THEIR MODELS ON THE LIBRARY OF

PIRATED DIGITAL E-BOOKS THEY WERE FILED ON MARCH 8 AND THE

JOINT DOZENS OF AUTHORS SUING TAPIA COMPANIES INCLUDING

OPENAI AND META.

BITCOIN HOVERS NEAR THEIR ALL-TIME HIGH.

CAN THE CRYPTOCURRENCY RUN THE SUSTAIN 71 692 RIGHT NOW?

ARM CHIP DESIGN FORM. THE LOCKUP ASCENDING IN THE

CONCERN THAT THE INSIDERS ARE FREE TO SELL SHARES WILL DO SO.

IT IS A STORY THAT HAPPENS FOR MANY IN THE POST CYCLE IF YOU

THINK ABOUT THE NUMBER OF TECH NAME SET OF LISTED.

THIS IS BLOOMBERG TECHNOLOGY.

ED:

COINS RECORD-BREAKING BRAND SHOWED FEW SIGNS OF SLOWING

WITH LARGE AMOUNT OF CAPITAL INFLOWS, STRONG DEMAND FOR THE

CRYPTOCURRENCY RECENT ALL-TIME HIGH OF 72,881 ON MONDAY.

WITH SOME INVESTORS EYEING A TARGET OF 80,000 U.S.

DOLLARS IN THE MEDIUM-TERM. GRAYSCALE INVESTMENT IS LOOKING

TO LAUNCH A CLONE OF THE WORLD'S LARGEST BITCOIN FUND,

SAW MORE THAN 11 BILLION OF OUTFLOWS FROM HIS GB TC FUN.

LET'S GET THE ANALYSIS.

THERE'S SOMETHING GOING ON IN THE SHORT-TERM AND THERE IS THE

DEBATE ABOUT WHAT'S GOING ON IN THE LONG-TERM.

THE STAR THE SHORT TERM.

THE FLOW STATUS SEEMS TO IMPLY SUSTAIN MOMENTUM.

GIVE ME YOUR ASSESSMENT OF THE HERE AND NOW?

>> IF I LOOK AT THE SHORT-TERM I REALLY SEE THE DEMAND HAS

SURPRISED A LOT OF PEOPLE'S EXPECTATIONS.

WE HAVE ALWAYS EXPECTED THAT

BEFORE THE COIN IF THE PRICES GO UP BUT EVEN WITH THIS ALL

PRESSURE, WE SEE THE BITE IS TOO MUCH.

IT'S BEEN A VERY INTERESTING CYCLE FOR BITCOIN. ED:

SOMETHING I'VE BEEN BRINGING UPON AARON THE LAST FEW DAYS

THERE IS A SCENARIO WHERE THOSE WHO ARE BULLISH ON

CRYPTOCURRENCIES ESPECIALLY BITCOIN, AND THOSE THAT ARE

BEARISH ON BITCOIN SEEM TO AGREE ON ONE THING.

FROM WHERE WE ARE NOW, IS LIKELY BITCOIN GOES TO A HIGHER

MILESTONE. WE TALKED ABOUT 80,000 AS A

MEDIUM TERM CALL AND I'VE ALSO SEEN A HUNDRED THOUSAND BUT

MANY AGREE THEY ALL PULLED BACK. WHAT'S YOUR UNDERSTANDING OF

THE WHY BEHIND THAT?

>> THE FIRST THING IS, AFTER THE BITCOIN HAVING WE SEE SOME

SORT OF A PLATEAU, WE ARE ALSO EXPECTING A LOT OF PEOPLE THE

INTEREST RATE TO BE CUT DOWN BEFORE THE ELECTIONS.

THE ELECTIONS BRING JOSH WILL REDEFINE THE POLITICAL ROADMAP

PROCRIT DO OR NOT SO MUCH PROCRIT DO.

BEYOND BITCOIN WE HAVE SEEN THE TECHNOLOGY LATERALLY WITH

POLYGON AND SOLANO AND THAT WILL DEFINE THIS ROADMAP. ED:

THERE'S AN INTERESTING NEWS STORY THIS MORNING WHERE THE

RIKSBANK GOVERNOR, IS CENTRAL BANKER GAVE HIS OPINION THAT HE

WANTED TO MINIMIZE BITCOINS INFLUENCE, PRESENCE IN THE

FINANCIAL SECTOR. HE SAID I WANT AS LITTLE

BITCOIN IS POSSIBLE IN THE SWEDISH FINANCIAL SYSTEM.

WHAT YOU MAKE OF THE CENTRAL BANK IN LIKE THAT?

>> WE HAVE SEEN THAT AGAIN AND

AGAIN, EVERY BULL CYCLE WE SEE A REPUTABLE INSTITUTION SAYING

THIS COULD BE A PROBLEM AND DID THE BEAR MARKET THEY SAID SEE,

WE TOLD YOU IT WAS A PROBLEM. AND THEN MORE AND MORE

COUNTRIES STARTED USING IT.

IT'S NOT NEW, SAYING THAT IS BEYOND ANY PARTICULAR STATE,

CITY, COUNTRY ALL THE WAY TO THE U.S.

WHERE WE DO HAVE BITCOIN ETF'S WHERE EVEN THREE YEARS BACK

WILL IT EVEN EXIST OR NOT? ED:

THE CENTRAL BANK GOVERNORS ARGUMENT IS NOT A THREAT TO

FINANCIAL STABILITY BUT WORRIED ABOUT THE IMPACT ON CONSUMERS

THAT MAY OR MAY NOT CHOOSE TO HOLD THAT IS A RISK ASSET.

WHAT'S THE BIG PICTURE

HAPPENING HERE BEYOND BUL BITCOIN?

>> WE ALWAYS TALK ABOUT THE CLAIM IN CRISIS.

IN FT BY SOME HOLLYWOOD ACTOR BUT THE REAL THING IS THE

TECHNOLOGY AND THE DECENTRALIZATION OF THINGS USED

BY SOME OF THE BIGGEST COMPANIES, INSTITUTIONS

GLOBALLY.

YOU ARE SEEING ALTCOINS, TECHNOLOGY TOKENS WHETHER IT IS

POLYGON, OPTIMISM IS DOING WELL. I THINK IT'S ABOUT THE

TECHNOLOGY, ADOPTION AND SUPPLY CHAINS, AND I THINK WE NEED TO

START TALKING ABOUT IN THE MAINSTREAM MEDIA ABOUT THE

UNDERLYING TECH THAN JUST THE PRICE MOVEMENT.

IT'S AMAZING WHEN YOU HAVE TRILLIONS OF DOLLARS TO TALK

ABOUT BUT I THINK THE TECHNOLOGY SHOULD BE MAKING THE

HIGHLIGHTS NOW. ED:

ON THIS TECHNOLOGY IN THE LONG-TERM, THERE SEEMS TO BE

BIPARTISAN NOT SUPPORT BUT PROBABLY ACKNOWLEDGMENT OF

WHAT'S HAPPENING OF CRYPTOCURRENCY.

DO YOU AGREE WITH THAT, THAT'S WHAT'S HAPPENING IN D.C.

IN PARTICULAR?

>> D.C. IS MUCH MORE INFORMED TODAY

THAT IT WAS 4, 5 YEARS BACK.

AT THE SAME TIME WE SHOULD LOOK AT BLOCKCHAIN AS A TRUSTED

TECHNOLOGY WHETHER IT'S A CASH CURRENCY OF THE COIN.

YOU WERE JUST TALKING ABOUT OPENAI, YOU CAN GRAB DATA FROM

ANYWHERE BUT THE VERIFICATION OF THE DATA HAS ALWAYS BEEN A

PROBLEM.

THAT'S WHAT GIVES YOU THE VERIFICATION OF DATA, OWNERSHIP

OF THAT CONTENT AND WHO TO GIVE IT BACK TO.

VERY SIMILAR TO WHAT THE NEW YORK TIMES AND NEWS MEDIA TRIED

TO BLAME AND SUE GPT. AT THE END OF THE DAY WHETHER

IT IS A BLOCKCHAIN, BITCOIN

WERE TALKING ABOUT THE TRACEABILITY, VERIFICATION,

DECENTRALIZATION TECHNOLOGY. MORE AND MORE PEOPLE ARE

GETTING INFORMED ABOUT IT BUT THE CHANNEL BLOCKING.

PRICES ARE JUST TOO DIFFICULT TO GET AWAY FROM THE. ED:

WE DIDN'T GET TO A THEORY ABOUT THERE'S A LOT OF

INVESTMENT IN THE AREA HIM SYSTEM.

--ETHERIUM SYSTEM.

>> USING A CASE STUDY OF KATIE PORTER RUNNING IN CALIFORNIA.

LOOKING AT SHARES OF APPLE. APPLE WILL ALLOW YOU TO

DOWNLOAD APPLICATIONS FROM THE WEB OUTSIDE OF IOS LOCALIZED ON

THE DEVICE. IT DIDN'T DO MUCH FOR THE

SHARES, 0% ON THE STOCK.

WE SAT DOWN WITH MORGAN STANLEY STRATEGIST MORGAN WILSON WHO

HAD THIS TO SAY ON ARTIFICIAL INTELLIGENCE.

>> WE DO BELIEVE IN AI, WE HAVE

BEEN FRONT FOOTED ON THIS FRONT IN THE LAST YEAR, 1.5 YEARS.

ED: IT IS TIME FOR TALK TECH,

JAMIE DIMON HAS ONCE AGAIN HAILED AN OFFICIAL INTELLIGENCE

POINTING TO THEIR UNBELIEVABLE POTENTIAL FOR THE BANKING

SYSTEM.

AI ACROSS FUNCTIONS LIKE RISK, FRAUD, MARKETING AND CUSTOMER

RELATIONS HAS CAUSED IT TO GROW IN IMPORTANCE WITHIN THE

COMPANY. IN THIS ELECTRONICS FIRM HAS

HAD HIS INTRADAY SALES FOR A YEAR AFTER IT ANNOUNCED SELLING

HIS LONG-AWAITED ELECTRONIC VEHICLES IS BUNK.

IT IS A RED-HOT CONTEST IN CHINA'S EV MARKET LED BY TESLA

AND BYD AND LEGISLATION THAT WOULD FORCE TIKTOK'S CHINESE

PARENT TO SELL ITSELF OR FACE A BAN IS PICKING UP SPEED AND

CONGRESS PLACING A DO DEBT LIMIT AFTER PRESIDENT

TRUMP SUGGESTED THE AD SHOULD NOT BE BANNED AFTER ALL YOUNG

TIKTOK USERS WOULD GO CRAZY WITHOUT IT.

LET'S STICK WITH TIKTOK AND TURN TO ITS CURRENT PLACE IN

THE POLITICAL LANDSCAPE.

EVERY ELECTION CYCLE ONE PLATFORM EMERGES AS A MEANS TO

CONNECTING WITH YOUNG VOTERS IN THIS CYCLE IS POINTING TO

TIKTOK BUT IS CAMPAIGNING ON TIKTOK EVEN WITH THAT?

BLOOMBERG'S ALICE PARENCHYMA

HAS DONE THE SCIENTIFIC REPORTING OF EXAMINING KATIE

PORTER'S CAMPAIGN THAT RELIED HEAVILY ON TIKTOK.

>> I LOOK TO KATIE PORTER AND ADAM SCHIFF WHO WERE THE FRONT

RUNNERS IN THEIR PERFORMANCE ON TIKTOK.

PORTER IS KNOWN AS BELOVED TIKTOK HER.

HER ENGAGEMENT RATES ARE BETTER THAN EVEN THE BEST INFLUENCE.

WE WANTED TO SEE HOW THAT PLAYED OUT IN THE OPEN RACE FOR

THE SENATE PRIMARY WHICH GOES TO THE TOP TWO VOTE GETTERS.

KATIE PORTER WELL ARE PERFORMED ADAM SCHIFF.

SHE HAD TWICE AS MANY VIEWS IN 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 30

-- PORTER CAME IN THIRD WHICH MEANS SHE WILL NOT BE ON THE

BALLOT. WHY?

THOSE YOUNG PEOPLE DID NOT SHOW UP. ONLY 10% WERE UNDER 30, 47%

WORK OVER THE AGE OF 65 AND I DON'T KNOW IF THEY ARE SPENDING

THEIR TIME ON TIKTOK. ED:

I WAS UP ON SUPER TUESDAY HERE AT THE DESK COVERING CALIFORNIA.

THE SAME NUMBER OF VOTERS OVER 65 AS UNDER 35.

I THINK THERE ARE ABOUT 170 MILLION USERS OF TIKTOK.

JUST PUT THAT IN PERSPECTIVE WITH THE CONTEXT OF THIS BILL

PLAYING IN D.C..

>> IN THIS PRIMARY LAYS BARE A PAIN POINT OF THE DEMOCRATS.

THEY REALLY NEED YOUNG VOTERS TO SHOW UP.

THEY SHOWED UP FOR BY THEN AND THE MIDTERMS. FOR THOSE 170

MILLION THEY SAY THEY OFTEN GET THEIR NEWS ON TIKTOK.

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 OUT TO VOTERS.

IN NOVEMBER FOR A CAMP LIKE BIDEN WHO WAS ON TIKTOK IT'S

NOT ONLY REACHING THEM IN SPEAKING THE INTERNET LANGUAGE

LIKE KATIE PORTER WAS SO GOOD AT BUT ALSO GETTING THOSE FOLKS

TO AGITATE AND ALIGN TO GET TO THE POLLS.

FOR BIDED IN PARTICULAR AS HE BATTLES THE NARRATIVE AROUND

HIS AGE, TIKTOK SEEMS TO BE A PLACE HE COULD BE RELATABLE,

AUTHENTIC, A CANDIDATE FOR THOSE VOTERS.

HE WILL HAVE TO CLEAR SOME OF THE BARS TO NOT JUST VOTE WITH

THEIR FINGERS BUT TO GET ON THEIR FEET AND HEAD OUT TO THE

POLLS. ED:

I RECOMMEND YOU READ THAT REPORTING ON KATIE PORTER ON

BLOOMBERG.

WE WILL TAKE THE PULSE OF THE IPO MARKET.

LET'S TAKE A LOOK AT THE MARKETS.

THESE ARE YOUR MAJOR INDICES. AFTER THAT HOT CPI.

MARKETS AND TRADERS WERE BRACED FOR THE WORST CASE SCENARIO BUT

A REALITY, NOTHING HAS REALLY CHANGED.

THEY ARE STILL BETTING A FIRST RATE CUT WILL COME IN JUNE IF

IT ALL AND IF YOU LOOK AT THE NASDAQ 100, A SLIGHT OUR

PERFORMANCE RELATIVE TO THE S&P 500 A BIG PART OF THAT IS

ORACLE AND ITS EARNINGS.

>> WELCOME BACK TO BLOOMBERG TECHNOLOGY WITH ED LUDLOW IN

SAN FRANCISCO. READ ITS IPO IS STILL THE TALK

OF CREDIT. LAST NIGHT THE COMPANY POSTED

AN AMA, AND ASKED ME ALMOST ANYTHING AND READ IT ADDED

MEN'S INVITED WRITERS TO ASK QUESTIONS TO THE CEO, CFO

THROUGH THE END OF MARCH 12.

THEN READ IT --REDDIT PLANS TO RESPOND MARCH 18 IN A VIDEO

BECAUSE LEGALLY IT CANNOT RESPOND IN THE COMMENTS.

AS OF THIS MORNING THE MOST OF VOTED POST BY REDDITERS POSED

THIS QUESTION. THE GENERAL CONSENSUS VIBE

AMONG REDDIT USERS ABOUT IPO AND WHAT IT RETURNS FOR THE

FUTURE OF THE SITE SEEMS EXTREMELY NEGATIVE.

WHY DO YOU THINK THAT IS?

>> THAT SPEAKS TO US HISTORICALLY COMBAT OF

REDDITERS HAVE ON THE WEBSITE. LET'S TALK ABOUT THE LISTING

WITH THE COFOUNDER AND MANAGING DIRECTOR OF RAINMAKER

SECURITIES. LET'S START WITH YOUR REACTION

TO THE IDEA THAT THIS SHALL MEDIA COMPANY IS TRYING TO

MARKET 8% OF THE OFFERING TO RIOTERS WHO DON'T SEEM TO LIKE

THE COMPANY OFFERING.

GREG: IT IS SMART. CLEARLY THERE IS A RISK ED:

--REDDIT SEES BEING A COMMERCIAL ENTERPRISE AT ALL

AND SELLING THEMSELVES AS A PUBLIC COMPANY TRYING TO

MAXIMIZE FOR PROFITS KIND OF VIOLATES THE RELATIONSHIP THEY

HAVE WITH THEIR USERS THAT CONTRIBUTE A VAST AMOUNT OF

CONTENT FOR FREE. NOW THE POTENTIAL

COMMERCIALIZATION BECOMES A RISK FACTOR.

HOW DO THEY MITIGATE THAT? THEY MAKE THEIR USERS AND THEIR

CONTENT GENERATORS PART OF THE COMPANY. THEY GIVE THEM ECONOMIC

INCENTIVE TO SAY POSITIVE THINGS ABOUT REDDIT.

BECAUSE, NOW THEY WILL HOPEFULLY BE IPO SHAREOWNERS

MOTIVATED TO SPEAK WELL OF REDDIT.

I THINK IT IS SMART, BUT THERE IS A RISK THAT THE REDDIT

BACKLASH FROM PEOPLE THAT DON'T OWN SHARES OR PEOPLE THAT SHIRK

THE OPPORTUNITY TO OWN SHARES BECAUSE THEY WANT TO REMAIN IN

BOHEMIA COMMUNITY. THERE IS PART OF THAT RISK BUT

I THINK IT IS PART OF WHAT REDDIT IS DOING. ED:

THEY WERE FLEXING ON THE TIMING OF ALL THIS.

I REMEMBER IN 2021 WHEN THEY CONFIDENTIALLY FILED.

2021 WAS THE BETTER YEAR FOR THE U.S. IPO MARKET.

HOW DO YOU FRAME THE TIMING OF WHETHER THEY MISSED THE BOAT OR

ACTUALLY WERE RIGHT TO WAIT UNTIL THIS POINT? GREG:

LESSON, IT WOULD HAVE BEEN GREAT IF THEY COULD HAVE GONE

OUT IN 2019 OR 2020 AND HAD A FEW YEARS OF THE ZERO INTEREST

RATE ENVIRONMENT WE HAD.

SORT OF, TO SURE OFF THEIR AFTERMARKET PERFORMANCE.

I THINK GOING PUBLIC AT THE END OF 2021 WAS A BIG MISTAKE.

I THINK THEIR VALUATION WOULD HAVE BEEN HAMMERED.

THEY WOULD HAVE LOST THE AFFECT OF BEING A NEW PUBLIC COMPANY.

THEY WERE CLEARLY WAY BEHIND IN REVENUE AT THAT POINT.

THEY DID NOT HAVE AN AI STORY LIKE THEY ARE TRYING TO TELL

NOW BEEF UP THEIR VALUATIONS. I THINK IT IS GOOD THEY DID NOT

GO PUBLIC THEN. I THINK THE MARKETS ARE MORE

FAVORABLE NOW FOR A LONG-TERM SUCCESSFUL STORY.

I THINK THEY WILL PRICE THEIR IPO AT A MORE REASONABLE

VALUATION NOW THAN THEY WOULD HAVE IN 2020 ONE. -- 2021.

ED: I WANT TO TALK ABOUT THE VALUATION AND ALSO AI.

YOU SAID THEY ARE NOW TELLING THE STORY, THAT ESSENTIALLY,

WHAT WE CAN DO IS LICENSE THE CONTENT THAT THOSE -- TWO DOES

THAT WANT THE DATA TO TRAIN LARGE LANGUAGE MODELS OR

FOUNDATION MODELS. HOW DOES THAT SOUND TO SOMEBODY

DECIDING WHETHER OR NOT TO BUY GREG: INTO AN IPO? GREG:THAT

IS THE MILLION-DOLLAR QUESTION. THERE IS NO DOUBT THE COMPANY

TODAY IS 98% ADVERTISING REVENUE.

IT IS A MEDIA COMPANY AND IT SHOULD TRADE MORE LIKE

PINTEREST OR SNAPCHAT. THEY ARE TRYING TO PUSH A

NARRATIVE TO SELL MORE LIKE AN AI DATA COMPANY.

THEY HAVE A LOT OF PROPRIETARY DATA THAT IS USER GENERATED

CONTENT AROUND VARIOUS INTEREST GROUPS, WHETHER IT IS STOCKS,

CARS, OR ALL KINDS OF GROUPS. THEY HAVE A LOT OF CONTENT TO

THEIR USERS ARE GENERATING AND IT IS PROPRIETARY.

THEY HAVE DONE DEALS ALREADY WITH GOOGLE.

THEY TALKED ABOUT $200 MILLION OF DATA REVENUE OVER THE NEXT

THREE YEARS INCLUDING AROUND A 60 MILLION-DOLLAR DEAL WITH

GOOGLE. THEY HAVE ACTUAL REVENUE ASSOCIATED WITH THIS AI

TRAINING MODEL. THE AI COMING ONTO THEIR SITE.

CRAWLING THROUGH THEIR DATA AND TRAINING ITSELF.

THERE'S A STORY THERE.

IT ALSO RUNS THE RISK OF INFLAMING THEIR USERS THAT ARE

LIKE, YOU ARE SELLING MY DATA, HAVING AN AI TRADE ON ME AND I

AM NOT GETTING AID FOR WHAT? THERE ARE RISKS TO THAT

STRATEGY AS WELL BUT I THINK THEY ARE TRYING TO GET AWAY

FROM BEING A PURE ADVERTISING NARRATIVE AND I THINK IT IS A

GOOD STRATEGY TO LIFT THEIR VALUATION. ED:

AT THE UPPER END OF THE RANGE $34 BY SHARE.

6.4 BILLION. HOW MARKETABLE IS THAT?

PEOPLE PAY A LOT OF ATTENTION TO HEADLINE FIGURE ON VALUATION?

GREG: THE COMPANY DID ABOUT $800 MILLION IN REVENUE LAST YEAR,

ABOUT 20%. THAT IT'S KIND OF PEDESTRIAN

GROWTH. 98% OF THAT WAS ADVERTISING.

IF YOU APPLY A FIVE X, SEVEN MULTIPLE TO THAT.

YOU COME UP WITH A $4 BILLION-$6 BILLION VALUATION.

$6 BILLION AT THE HIGH-END. FRANKLY IT SHOULD BE CLOSER TO

FIVE. WE ARE SEEING TRAITS ON OUR

PLATFORM AT THE $4.8 BILLION-$5 BILLION RANGE IN THE PRIVATE

MARKET BEFORE THEY HIT THE ROAD THIS WEEK.

SO I THINK IT IS A STRETCH AND A QUESTION OF WHETHER THE

MARKET WILL BUY INTO THIS EMERGING DATA AI STORY THEY ARE

TRYING TO TELL. THEY DO HAVE SOME CONTRACTS.

THEY DO HAVE SOME REVENUE. TO PUSH.

OF TRADITIONAL SOCIAL MEDIA MULTIPLE THAT IS WHAT THE

MARKET WILL HAVE TO BELIEVE. THAT IS WHY THEY SPEAK UP.

SAM ALTMAN WITH HIS BEING INVOLVED WITH THE COMPANY THERE

IS A LOT AROUND THE AI STORY TO PUSH THAT MULTIPLE UP, BUT I

THINK IT WILL BE A CHALLENGE. ED:

I DON'T THINK THERE IS A SINGLE MEMBER OF ALEXIS OHANIAN AND

OTHER COFOUNDERS IN THE X1. WHEN THEY STEP ON THE SHOW I

WILL ASK ABOUT THAT. GREG ALWAYS KNOWS THE FULL SO

WHAT IS GOING ON ON THE GROUND. COMING UP, WE DISCUSS THE

HEALTH OF THE CRYPTO INVESTING LANDSCAPE AND MORE WITH OUR

THE COIN SHARES CEO JOINING US LIVE ON BLOOMBERG CRYPTO AT

12:00 P.M. EASTERN 9:00 A.M. PACIFIC. THIS IS BLOOMBERG.

LET'S GET NEW THE. VENTURE CAPITAL FIRM EXCEL IS

BACKING AN AI START UP THAT IS USING THE TECHNOLOGY TO KILL

FINANCE PAPERWORK.

IT USES ARTIFICIAL INTELLIGENCE TO HELP BUSINESSES SQUARE

ACCOUNTS AND MANAGE BUDGETS AND RAISED $29 MILLION IN AN EARLY

ROUND LED BY XL INDIA, Y COMBINATOR, ELEVATION CAPITAL,

AND OTHERS TOOK PART IN THE SERIES BRINGING THE SAN

FRANCISCO-BASED STARTUP'S TOTAL FUNDING TO $40 MILLION.

LET'S TALK MORE ABOUT STARTUPS AND VENTURE WITH SALIL

DESHPANDE ON TODAY'S VC STARTUP. HE IS THE FOUNDER AND GENERAL

PARTNER OF UNCORRELATED VENTURES WHICH RAISED A NEW

$315 MILLION FUND A FEW WEEKS AGO TO FOCUS ON SOFTWARE AND

CRYPTO. FOR A SOLO GP THAT'S A BIG

CHUNK OF CHANGE. TWO FOCUSES FOR YOU TO CRYPTO.

WHICH IS BIGGER? SALIL: INFRASTRUCTURE SOFTWARE IS AT

THE LARGER FOCUS, 80% AND CRYPTO IS 20%. ED: WHY? SALIL:

PARTIALLY MY BACKGROUND HAS ALL BEEN IN INFRASTRUCTURE SOFTWARE.

A LOT OF CRYPTO'S INFRASTRUCTURE SOFTWARE.

NOT ALL OF IT. BUT, PORTIONS OF IT ARE JUST

DECENTRALIZED INFRASTRUCTURE SOFTWARE. ED:

HOW MUCH -- I DON'T KNOW HOW TO PUT THIS -- FEEL GOOD DOES

SPACES LIKE INFRASTRUCTURE SOFTWARE, SAS MAY GET FROM WHAT

IS HAPPENING IN AI? AS FAR AS I CAN TELL, THE VERY

BASIC PITCH FOR AI IS IT IS A VALUE ADD TO EXISTING SOFTWARE

PLATFORMS. SALIL: AI IS A SUBSET OF

INFRASTRUCTURE SOFTWARE. SO, IT GETS A LOT OF FEEL-GOOD

VALUE FROM AI. INFRASTRUCTURE SOFTWARE IS JUST

SOFTWARE THAT'S NOT APPLICATION SOFTWARE.

SO, AI IS VERY VERY MEAN FRIENDLY -- MEME FRIENDLY NOW.

THE SENTIMENT IS TOO POSITIVE. IT IS A HOT MESS.

I WOULD LIKE TO BE INVESTING IN THE TOOLS AND THE TOOLCHAIN

SLAYER. BUT THERE ARE TOO MANY COMPANIES.

IT'S TOO CROWDED AND VALUATIONS ARE HIGH.

THE LOWER LEVEL, HARDWARE, IS OFF-LIMITS VENTURE INVESTORS.

THAT IS THE REALM OF LARGER COMPANIES.

DELAY OR ABOUT THAT, FOUNDATION MODELS, THOSE ARE ALSO TOUGH TO

INVEST IN BECAUSE THEY ARE MORE LIKE OPERATING SYSTEMS THAT ARE

TOUGHER TO MONETIZE THAN DATABASES THAT ARE EASIER.

THE THIRD LAYERED, TOOLS AND TOOL CHAINS, IS THE BEST AREA

FOR VENTURE INVESTORS, BUT IT'S A HOT MESS.

THE FOURTH PLAYER, JUST USING AI OR LEVERAGING AI HAS BEEN,

SO FAR, A BIT EASIER FOR ME TO INVEST IN. ED:

YOU KEEP SAYING IT'S A HOT MESS. THERE MUST BE AN OPPORTUNITY OR

WAY TO NAVIGATE A HOT MESS BECAUSE YOU HAVE RAISED A SELLS

A BOWL -- EIGHT SIZABLE FUN AND THE LPS MUST BACK YOUR VISION

TO INVEST IN THAT PLAYER. SALIL: THERE ARE A LOT OF GREAT

OPPORTUNITIES. THERE ARE JUST SO MANY

COMPANIES THAT IS TOUGH TO WEED THROUGH ALL OF THEM AND FIND

THE RIGHT ONES. WHEN YOU FIND THE RIGHT ONES AT

THE VALUATIONS ARE VERY HOT. THEY CLOSE VERY FAST. SO IT IS

TOUGHER TO PROSECUTE. I DO HAVE A HALF-DOZEN OR SO

SEED INVESTMENTS IN THAT AREA

AND WE WILL SEE HOW WELL ED: DAN: DAN: THEY DO.

MY NEXT QUESTION IS AT WHAT STAGE AND WHERE GEOGRAPHICALLY

ARE YOU FINDING THE MOST SUCCESS INITIALLY? SALIL:

SEE, SERIES A, SMALL CHECKS, AND SERIES B.

GEOGRAPHICALLY U.S. OR WORLD MARKETS WITH AN

EXCEPTION FOR INDIA. ED: THE OTHER FOCUS OF THE FUND IS

CRYPTO.

I AM GUESSING CRYPTO ADJACENT STARTUPS ARE WORKING MORE ON

UNDERLYING TECHNOLOGY, IS THAT RIGHT?

AS OPPOSED TO ADDITIONAL TOKENS THEMSELVES. SALIL:

YES BUT SOMETIMES THE ONLY WAY TO INVEST IN THE PRODUCT IS TO

BUY THE TOKEN. SOMETIMES YOU BUY EQUITY

INDIVIDUALLY THE EQUITY CONVERTS TO TOKENS.

BUT TO THE EXTENT IT IS DECENTRALIZED INFRASTRUCTURE IT

IS IN SCOPE FOR ME. NOT ALL OF CRYPTO'S

INFRASTRUCTURE. ED: $315 MILLION IS A SIZABLE FUND.

I AM INTERESTED IN THIS ECONOMIC ENVIRONMENT, IN THIS

RATES ENVIRONMENT, WHAT THE LPS LOOK LIKE.

WHERE YOU WILL -- WERE ABLE TO RAISE THOSE FUNDS FROM AND HOW

QUICKLY. SALIL: THEY WERE MOSTLY INSTITUTIONAL.

70%-70 5% WAS INSTITUTIONAL AND THERE IS A LONG TAIL OF FAMILY

OFFICES AND INDIVIDUALS. THERE ARE FOUR SOVEREIGN WEALTH

FUNDS AND ONE UNIVERSITY ENDOWMENT.

THE FUNDRAISING WAS NOT TOO BAD. IT WAS PRETTY SMOOTH. ED:

LET'S QUICKLY GO BACK TO AI. YOU EXPRESSED CONCERNS ABOUT AI

VALUATIONS RIGHT NOW OR AT LEAST THE IMPACT OF THE

INTEREST IN AI ON VALUATIONS. DO YOU FEEL LIKE THAT IS

SOMETHING THAT WILL CONTINUE THROUGH THE YEAR?

OR, INVESTORS HAVE KIND OF HAD THEIR FILL OF THE HIGH MULTIPLE

AI NAMES THEY HAVE GONE INTO? SALIL:

AI IS A LONG TERM OPPORTUNITY THAT WILL CHANGE EVERYONE.

EVERYONE WILL LEVERAGE AI AND AI IS AVAILABLE TO EVERYBODY

THROUGH AN API CALL. SHORT TERM I'M A LITTLE WORRIED.

THE POSITIVE SENTIMENT MAKES ME A LITTLE NERVOUS AND I AM

HOPING FOR THE TROUGH OF DISILLUSIONMENT TO INVEST MORE.

BUT, I THINK BEYOND THE TROUGH OF DISILLUSIONMENT, IT WILL BE

AN UPTREND AGAIN. ED:

NAI LANDSCAPE THAT IS A HOT MESS UNDERPINNED BY A TROUGH OF

DISILLUSIONMENT.

SALIL DESHPANDE FOUNDER AND PARTNER AT UNCORRELATED

VENTURES I APPRECIATE THAT CONVERSATION.

EARLIER WE REPORTED ON THE OPENAI COURT FILING CAUSING

MOSQUES -- COLLIN ELON MUSK'S SUIT AGAINST THEM INCOHERENT.

DURING THE SHOW ELON MUSK EMAILED ME HIS RESPONSE TO SAY

THAT OPENAI IS A LIE AND THAT IS ALL HIS RESPONSE TO THE

STORY SAID. COMING UP, RENT THE RUNWAY IS

PLEDGING $1 MILLION TO CELEBRATE CAREER WINS FOR WOMEN

IN HONOR OF WOMEN'S HISTORY MONTH.

WE WILL HAVE ALL OF THE DETAILS WITH THE CEO COMING UP.

AND SHARES OF RUMBLE, THE CONSERVATIVE VIDEO NETWORK

BACKED BY PETER THIEL IS UP ALMOST 14%. WHY?

RUMBLES CEO HAS FLOATED IN INTEREST, ACCORDING TO

BLOOMBERG REPORTING, IN TIKTOK'S U.S. OPERATIONS.

WE ARE STARTING TO BUILD OUT A LIST OF WHO, ON PAPER, MIGHT GO

AFTER TIKTOK'S U.S. OPERATIONS IS, INDEED, THE

PARENT COMPANY IS FORCED TO SELL.

THIS IS BLOOMBERG TECHNOLOGY.

ED: RENTED THE RUNWAY AS A PLATFORM

WHERE CUSTOMERS CAN SUBSCRIBE, RENT ITEMS A LA CARTE AND SHARP

RETAIL FROM HUNDREDS OF DESIGNER BRANDS AND IS GIFTING

$1 MILLION IN FREE SCOOP GROUP YEARNS -- SUBSCRIPTIONS

THROUGHOUT WOMEN'S HISTORY MONTH TO WOMEN THAT HAVE

REACHED A MILESTONE IN THEIR CAREER. HERE ARE THE DETAILS.

CEO JENNIFER. THIS IS ALSO A COLLABORATION

WITH LINKED IN ON THE PLATFORM SIDE.

EXPLAIN WHY YOU ARE DOING IT. JENNIFER:

I RECENTLY HAD MY THIRD CHILD. IT WAS FASCINATING.

I RECEIVED MORE PERSONAL CONGRATULATIONS AND LOVE THEN

WHEN I IPO DRENCH THE RUNWAY -- IPOED RENT THE RUNWAY IN 2021

AND I THOUGHT ABOUT HOW IN THE CONTEXT OF OUR CULTURE IT IS

PART OF THE GAME THAT WOMEN FEEL MORE COMFORTABLE SHARING

THEIR PERSONAL MILESTONES AND PERSONAL ACCOMPLISHMENTS THEN

PROFESSIONAL ONES AND GIVEN THAT WE LIVE IN A WORLD WHERE

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 OTHERS

TELL ABOUT YOU.

THIS IS A CAMPAIGN TO ENCOURAGE MORE WOMEN TO FEEL COMFORTABLE

SHARING PROFESSIONAL ACCOMPLISHMENTS ON A PLATFORM

LIKE LINKED IN WORDS MATTERS. ED: AS I HAVE DISCLOSED ON THE

PROGRAM BEFORE MY WIFE IS A LONG-TERM SUBSCRIBER, USER, AND

CUSTOMER OF RENT THE RUNWAY. THINKING BACK TO A YEAR AGO

WHEN YOU WERE ON THEIR SHOW, PARTICULARLY IN THE SUMMER OF

2023 YOU COULD BACK ON INCENTIVES AND DISCOUNTS LIKE

THAT OUTLINING THE LOGIC AT THE TIME THAT THE NEW USERS OR

SUBSCRIBERS THAT SIGN UP IN THE FACE OF LOWER DISCOUNTS ARE

LIKELY TO STAY LONGER. WHAT IS THE STRATEGY HERE WITH

THIS INCENTIVE IN THE CONTEXT OF SUBSCRIBER GROWTH?

JENNIFER: OUR BRAND IS A POWER TOOL FOR

WORKING WOMEN. ONE OF THE MAIN REASONS SOMEONE

SIGNS UP IS TO FEEL EMPOWERED AND CONFIDENT EVERY SINGLE DAY

AT WORK.

SO, THE FACT NOW THAT WOMEN WILL BE REFERRING THEIR

COLLEAGUES, THEIR PEERS, THEIR FRIENDS, FOR AN ACCOLADE THAT

THEY RECENTLY DESERVE IN THEIR CAREER, TO RECEIVE A RENT THE

RUNWAY SUBSCRIPTION WE FEEL THIS IS EXACTLY HOW WE BRING

OUR BRAND BACK INTO THE UNIVERSE AND CREATE MOMENTUM

AROUND OUR BRAND BEING A BRAND THAT SUPPORTS PROFESSIONAL

WOMEN. ED: WHEN I POSTED ON SOCIAL MEDIA

YOU WERE COMING ON THE SHOW A LOT OF PEOPLE BROUGHT UP NEWLY

AND POINTED OUT IT IS A YOUNGER PLATFORM BUT HAS MORE

SUBSCRIBERS THAN RENT THE RUNWAY.

THEY ASKED IF YOU HAVE LEARNED ANY LESSONS FROM NEWLY AND

TAKEN ANYTHING FROM THEIR EXPERIENCE THAT YOU MIGHT APPLY

TO RENT THE RUNWAY. JENNIFER: I THINK IT IS INCREDIBLE THAT A

MARKET WE CREATED AROUND RENTING CLOTHES IS NOW A REAL

MARKET IN THE U.S. AND MILLIONS OF WOMEN PER YEAR

ARE RENTING FASHION SO --, SUBSCRIBING TO FASHION.

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 THAT IS ACCELERATING IN HER CAREER,

THAT ALSO WANTS TO SOCIALIZE, THAT IS ALSO TRAVELING, TRYING

TO OPTIMIZE HER OWN TIME.

I THINK REALLY FOCUSING IN ON WHO OUR CORE CUSTOMER IS, THE

CAMPAIGN BEING AND EXEMPLIFY HER OF WHO THE CUSTOMER IS IS A

CRITICAL PART OF US CONTINUING TO GROW AND ACCELERATE.

I THINK NEWLY HAS DONE A REALLY GOOD JOB OF TARGETING A

SIGNIFICANTLY YOUNGER CUSTOMER THAN RENT THE RUNWAY. ED:

WHAT IS THE AI STORY WITH RENT THE RUNWAY?

JENNIFER: SO, ARA IS REALLY AN IMPORTANT

PART OF HOW WOMEN SEARCH FOR PRODUCTS ON OUR SIDE.

WE LAUNCHED AI ENABLED SEARCH AND STYLING EARLIER IN THE YEAR.

IT ENABLES WOMEN TO HAVE A LONG TERM USE CASE LIKE WHAT SHOULD

I WEAR TO THE TAYLOR SWIFT CONCERT?

THEN, TO GET A WHOLE HOST OF SUGGESTIONS TAILOR-MADE FOR HER.

YOU WILL SEE US CONTINUING TO ITERATE ON STYLING AND GENERAL

AND SEARCH. PART OF OUR PLATFORM IS ABOUT

OFFERING DISCOVERY. ENABLING WOMEN TO WEAR THINGS

THEY WOULD NOT OTHERWISE BUY. AI IS A PERFECT COMPLEMENT TO

THAT. ED: IT HAS BEEN TOUGH FOR RENT TO

THE RUNWAY. THE SHARES HAVE HAD A LONG BEST

TOUGH RUN. WOULD YOU CONSIDER TAKING THE

COMPANY PRIVATE TO GO AWAY AND GO BACK TO GROWTH? JENNIFER:

OUR FOCUS IS ON DRIVING THE BUSINESS TO FREE CASH FLOW

PROFITABILITY AND ON MAKING THE RIGHT LONG-TERM DECISIONS FOR

THE BUSINESS. I THINK WHAT HAS BEEN PROVEN

OVER THE LAST FEW YEARS IS RENTAL IS A REAL MARKET GROWING

FAR QUICKER THAN THE OVERALL FASHION INDUSTRY WITH MILLIONS

OF WOMEN THAT ARE NOW COMFORTABLE AND CONFIDENT

SIGNING UP FOR SKYPE -- A SUBSCRIPTION TO FASHION AND

THAT WAS NOT THE CASE EVEN FIVE YEARS AGO.

SO, IT IS OUR RESPONSIBILITY TO ENSURE THIS IS A PROFITABLE

SUSTAINABLE BUSINESS AND WE TAKE A PART IN THE MARKET WE

WERE PART OF CREATING. ED:

WENT THE RUNWAY FOUNDER AND CEO JENNIFER HYMAN, GLAD TO HAVE

YOU ON THE PROGRAM. WHAT IS SHOW IT HAS BEEN.

CHECK OUT THE POD WHEREVER YOU GET YOUR PODCASTS.