FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. 

CAROLINE: LIVE FROM SAN FRANCISCO AND NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. AT&T REVEALS A MASSIVE NEW CYBERATTACK. 

ED: WE WILL BRING YOU THE DETAILS ON TESLA'S ROBOTAXI UNVEILED TODAY. 

CAROLINE: AMAZON AND GENERAL CAPITALISTS BET ON AN AI ROBOTIC STARTUP. ED, WHAT DO YOU HAVE ON THE AT&T HACK? 

ED: THIS IS OUR BIG BREAKING TECHNOLOGY AND NEWS STORY. AT&T HAS DISCLOSED A MAJOR HACK OF CUSTOMER DATA THAT RELATES TO ALL OF THEIR CELL PHONE CUSTOMERS FOR A PERIOD OF TIME IN 2022, THE BEGINNING OF MAY.

THE END OF OCTOBER. IT IS A BROAD SPECTRUM OF CUSTOMER DATA, BUT THE BELIEF IS THAT THAT DATA THAT HAS BEEN OBTAINED BY MALICIOUS ACTORS IS NOT PUBLICLY AVAILABLE. WE ARE WAY OFF SESSION LOWS. WE HAVE BEEN DOWN THE MOST IN ABOUT A MONTH. IT IS KIND OF A HARD TO GAUGE SITUATION. I THINK WE ARE STILL ASSESSING THE VULNERABILITY OF THAT CUSTOMER DATA. THE CONTEXT IS THAT THIS IS A BIG HACK. IT IS DIFFERENT FROM A HACK A YEAR AGO, WHICH WE HAVE ALREADY TALKED ABOUT. CAROLINE: WELL SAID. THE CONTEXT IS THIS HAS HAPPENED QUITE RECENTLY BEFORE. WE GET STRAIGHT TO JOHN BUTLER. AT&T SAID IT DOESN'T BELIEVE THE DATA IS PUBLICLY AVAILABLE. WHAT IS THE DAMAGE? JOHN: I THINK THE DAMAGE FOR AT&T

COULD BE TO THEIR BRAND IMAGE
IN THE NEAR TERM. THE ONE THING I WOULD SAY WHEN
YOU THINK ABOUT IT IS THINK ABOUT ALL THE HACKS THAT HAVE
HAPPENED WITH FORTUNE 500 COMPANIES OVER THE PAST YEAR.
IT HAS BECOME QUITE COMMON. I THINK FROM A CONSUMER
STANDPOINT, PEOPLE MAY BE MORE HO-HUM ABOUT IT THEN THEY WOULD
HAVE BEEN FIVE YEARS AGO GIVEN HOW COMMON HACKS HAVE BECOME.
THIS IS BAD NEWS FOR AT&T IN THE SENSE THAT IT IS THE SECOND
BIG HACK ANNOUNCED IN LESS THAN A YEAR. ED:
I WANT TO BRING SOME OF THE LATEST NEWS WE GOT.
TO BE EXPECTED, BUT WE STARTED TO HEAR FROM REGULATORY
AGENCIES AND BODIES. THE SEC IS INVESTIGATING THE
MAJOR HACK OF CUSTOMER DATA. WHAT IS THE VULNERABILITY TO
AT&T, WHAT IS THE RISK TO THE

COMPANY AT THIS POINT? JOHN:
I THINK REGULATORS ARE GOING TO LOOK INTO HOW IT IS HANDLING
ITS DATA. THIS HACK WAS NOT ON AT&T'S
NETWORK. TO BE CLEAR, ITS NETWORK WAS
NOT BREACHED. IT WAS HOUSING DATA WITH A
THIRD-PARTY CLOUD PROVIDER. IT GENERATES MASSIVE AMOUNTS OF
DATA THROUGH CALL LOGS. IT LOGS YOUR NUMBER AND THE
NUMBER BEING CALLED. THAT IS THE TYPE OF DATA IS
WHERE THE BREACH WAS. TELECOM REGULATORS WILL LOOK
INTO DATA STORAGE PRACTICES, AND AT&T WILL BE OPEN TO
POTENTIALLY CONSUMER LAWSUITS FROM THIS. CAROLINE: WE REACHED OUT TO SNOWFLAKE AND
THE COMPANY, SAYING, WE HAVE NOT IDENTIFIED EVIDENCE SUGGESTING
THIS ACTIVITY WAS CAUSED BY A VULNERABILITY,
MISCONFIGURATION, OR BREACH OF

THE PLATFORM.
IS THERE READ ACROSS TO HOW COMPANIES LIKE AT&T DO WORK
WITH THIRD PARTIES? JOHN: SO, I THINK LIKE A LOT OF
FORTUNE 500 COMPANIES, AND A LOT OF DATA WAS MOVING INTO
CLOUD STORAGE BECAUSE IT JUST ISN'T PRACTICAL IN THE AGE OF
DATA TO STORE EVERYTHING ON PREMISE. I'M SURE AT&T WILL DO A
REEVALUATION. I THINK FOR SNOWFLAKE, HAVING
SPOKEN WITH OUR ANALYST WHO COVERS THE COMPANY, THEY ARE
PROBABLY GOING TO LEAN MUCH MORE HEAVILY INTO SECURING
THEIR PLATFORM AND AUGMENTING THE LEVEL OF SECURITY AROUND
THE DATA HOUSED ON THE NETWORK. CAROLINE:
JOHN BUTLER OF BLOOMBERG INTELLIGENCE, THANK YOU FOR
BREAKING IT ALL DOWN FOR US. WE FOLLOW ON ON AN INCREDIBLE
SCOOP THAT TESLA HAS BEEN

DELAYING THAT ROLLOUT, THE UNVEILING OF ITS ROBOTAXI. WE HAVE RECOVERED SOMEWHAT ON THE TRAINING TODAY. THE MANAGING DIRECTOR, SENIOR ANALYST JOINS US FOR MORE. YOU SAID THE DELAY DID NOT CHANGE ULTIMATELY YOUR BULLISH CALL ON TESLA. WHY NOT? >> IT IS TWO MONTHS. WE ARE NOT TALKING NINE MONTHS OR A YEAR. YOU WOULD RATHER THEM BE A JAW-DROPPING EVENT. THAT IS WHAT NEEDS TO HAPPEN IN OCTOBER. THE DELAY IS NOT WHAT YOU WANT TO SEE. NO ONE IS POPPING CHAMPAGNE WHEN YOU HEAR THERE WILL BE A DELAY. BUT IN TERMS OF THE AI STORY, FSD, THE NEXT PHASE OF TESLA, THAT IS UNCHANGED. IN OUR OPINION, THIS IS JUST

MORE AN AIR POCKET. PERIOD TO GET ONTO GOLD AT THE END OF THE RAINBOW. CAROLINE: LET'S TALK ABOUT SOME OF THE GOLD AT THE END OF THE RAINBOW. WE HAD SEEN A RUN-UP IN TESLA STOCK. WE DID SEE A FALL YESTERDAY. ED: WHAT SURPRISED ME OVERNIGHT WAS ALL THE RETAIL INVESTOR COMMUNITY VERY PUBLICLY SAYING, CAN YOU CONFIRM THIS? BLOOMBERG STANDS BY ITS REPORTING, AND WE ALWAYS REACH OUT TO ELON MUSK AND ANY OTHER AVENUE TO ASK FOR COMMENT AND VERIFY. BUT WHAT WAS IT THEN? YOU REMAIN BULLISH ON TESLA. A LOT OF FOLKS IN THAT COMMUNITY WERE SAYING, EXPLAIN THE 8.4% DROP IN THURSDAY'S SESSION. IS THAT JUST BECAUSE OF THE

RUN-UP IN THE STOCK THAT
PRECEDED IT OR BECAUSE OF GENUINE CONCERN? DAN: THIS IS GOING TO BE A
HISTORICAL DAY, WHATEVER DAY IT IS GOING TO BE IN OCTOBER.
A LOT OF ANTICIPATION GOING IN HERE.
TESLA IS MORE OF AN AI ROBOTICS PLAY IN MY OPINION THAN JUST AN
AUTO COMPANY. IT FEEDS INTO THE NARRATIVE IN
TERMS OF EMPTY PROMISES. I THINK IT IS IMPORTANT AND
THIS IS THE MOST IMPORTANT THING, THAT WHEN THEY HAVE THIS
EVENT IN OCTOBER, IT DOESN'T DISAPPOINT. IT SHOWS THE PATH
FOR ROBOTAXIS, SHOWS AUTONOMOUS. TWO MONTHS AWAY, THAT IS A
ROUNDING ERROR RELATIVE TO WHERE WE SEE LONGER-TERM.
LEAVING THE AI STORY ALONE IS WORTH A TRILLION DOLLARS FOR
TESLA. ED:

WE ALWAYS APPRECIATE YOU HAVING THIS. WE APPRECIATE THE GRAPHIC WITH YOUR COVERAGE. ALL THE STOCKS YOU ARE ACROSS. 30 BUYS, THREE HOLDS, AND ZERO CELLS. WHAT WOULD IT TAKE TO MAKE MR. IVES A LITTLE MORE CAUTIOUS ON TESLA? WHAT IS THAT HE WOULD SEE THAT WOULD MAKE HIM RETHINK HIS CALL? I DON'T KNOW. DAN: I MEAN WHAT I WOULD SAY TO THAT POINT, WE HAVE TALKED FOR THE LAST ALMOST 25 YEARS, REALLY POUND THE TABLE, BUT WE HAVE HAD BAD CALLS AS WELL. BUT OUR VIEW ESPECIALLY WHERE WE ARE THE LAST DECADE, ESPECIALLY THE LAST 18 MONTHS, THIS AI REVOLUTION IS JUST STARTING. WHEN I LOOK AT TESLA, WE TALK ABOUT A QUARTER OR TWO AGO THAT ELON MUSK NEEDED TO STEP IT UP AND I THINK HE DID THAT.

THINK DELIVERIES WAS IMPORTANT FOR Q2, BUT YOU NEED TO CONTINUE TO SEE DEMAND STABILIZATION, NO MORE MAJOR PRICE CUTS, AND OCTOBER. YOU'VE GOT TO DELIVER IN TERMS OF THE NEXT PHASE OF THE STORY, IN TERMS OF ROBOTAXI. 

CAROLINE: I'M REALLY INTERESTED IN THIS BEING AN AI, ROBOTICS PLAY MORE BROADLY. APPLE HAS SUDDENLY GOT ON THE AI BANDWAGON AS WELL. HOW ARE YOU FEELING ABOUT THE AI PLAY FOR THAT? 

DAN: THE CONSUMER AI REVOLUTION GOES THROUGH APPLE. I WILL COMPARE IT A LITTLE TOO MAYBE ROBOTAXI DAY. THAT WAS A HISTORICAL DAY. THAT IS WHERE INVESTORS STARTED TO RECOGNIZE THE KEYS TO THAT KINGDOM IS APPLE. THE HUGE PART IS NOT JUST VALUATION, BUT CATALYZING THE NEXT UPGRADE CYCLE WILL BE

APPLE INTELLIGENCE AND AI.
IT SPEAKS TO A BROADER VIEW. AMAZON, MICROSOFT, NVIDIA. ED:
I WANT TO REMIND TWO SPECIFIC POINTS. ELON MUSK WANTED MORE TO SHOW.
THEY HAD SOME DESIGN RETHINK. IN THE SAME MOMENT, UBER AND
LIFT JUMPED 5% IN THE SESSION. WHAT DID IT TELL YOU ABOUT HOW
SERIOUSLY IN THE MARKET INVESTORS TAKE TESLA ON A
RIDE-HAILING PLATFORM THEY MIGHT INTRODUCE? DAN:
YOU GET A WIN AND THAT SCOOP WAS A GOOD DAY FOR LUDLOW.
WHEN YOU TALK ABOUT THE AI PIECE, THERE ARE WORRIES ABOUT
THIS FLEET AND WHAT IT COULD LOOK LIKE FOR UBER AND LIFT.
I DON'T VIEW IT AS A ZERO-SUM GAME.
I THINK THE NEGATIVES ON UBER

IS OVERDONE IN TERMS OF WHAT.
THIS WILL MEAN FROM A ROBOTAXI FLEET PERSPECTIVE. I BELIEVE THAT IS SOMETHING
THEY WILL HAVE AS WELL WITH RIDESHARE.
3-5 YEARS FROM NOW, THERE WILL BE A DECENT PERCENTAGE THAT
THAT RIDESHARING WILL NOT HAVE A DRIVER. ED: INTERESTING TO SEE IF WAYMO IS
STILL IN THAT CONVERSATION AS WELL.
RIVIAN AND LOU SAID DID NOT COME UP.
I TALKED WITH THE TEAM AND EQUITIES.
I THINK IT IS RISK ON FOR RISK ON'S SAKE. BOTH DOWNTRODDEN, BUT
REBOUNDING SUPER SIGNIFICANTLY THIS FRIDAY. CAROLINE:
WE HAVE MACRO PEEKING IN BOOSTING THAT RISK APPETITE.
WE WILL TALK ABOUT IT ALL WITH ANNA RATHBONE.
GETTING HER MARKET OUTLOOK.

THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
LET'S GET A BIT OF A MACRO PICTURE IN THE MARKETS.
RISK ON FOR TECH NAMES. THE NASDAQ GOES HIGHER.
VOLUMES HIGHER ON THE BENCHMARK. THAT IS PERHAPS AS WE GET
FEEL-GOOD MUSIC COMING BACK IN. U.S.
PRODUCER PRICES WERE CLIMBING A LITTLE, BUT IF YOU DIG INTO THE
PERSONAL CONSUMPTION EXPENDITURE PRICE INDEX, THAT
DID NOT LOOK BAD. WE ARE SEEING EUROPE ON FIRE.
STOCK MARKETS AROUND THE WORLD DOING WELL, I'LL BE AT SOME IN
ASIA - ALBEIT SOME IN ASIA SELLING OFF.
ANNA RATHBUN WITH US. THE TECH MARKET HAS DRAGGED US
HIGHER. CAN IT CONTINUE TO DO SO? ANNA:
I THINK IT CAN AND HERE IS WHY.

THERE ARE SOME WEAKNESSES IN
THE ECONOMY, AS WE HAVE BEEN TALKING ABOUT THE LAST MONTH OR
SO. WHEN THERE ARE WEAKNESSES, THERE ARE BOUND TO BE COST
REDUCTION AND PRESSURE. WHEN YOU LOOK AT IT FROM THAT
PERSPECTIVE, THE CYCLICAL AREAS OF THE MARKETS WILL CONTINUE TO
BE PRESSURED. WE BELIEVE THAT THE TECH STOCK
RALLY HAS NOT JUST BEEN AN AI PHENOMENON; IT IS ALSO A
QUALITY PHENOMENON. WHEN YOU HAVE TECH STOCKS
RUNNING, COMPANIES THAT HAVE GIVEN US MORE THAN 50% YEAR ON
YEAR EARNINGS GROWTH. IF YOU CONTINUE TO SEE ECONOMIC
PRESSURE, THERE IS MORE ROOM TO DO WELL. ED:
A SINGLE SESSION, A MARKET DOES NOT MAKE, BUT I FOUND YESTERDAY
VERY INTERESTING.

THE MOMENT WE REPORTED THE TESLA NEWS, IT CLEARLY HAD AN IMPACT ON THE LEVEL. THE BIGGEST POINTS DRAGGED WERE NVIDIA, MICROSOFT, I THINK. IS THERE A LESSON TO BE TAKEN FROM THAT? ANNA: INVESTORS HAD BEEN FLOCKING TO THEM BECAUSE THEY ARE HEAVY FLASH WITH CASH. WHEN THE FED LOWERS INTEREST RATES, WE ARE GOING TO HAVE A ROTATION INTO MORE CYCLICAL AREAS THAT WERE PRESSURED DOWNWARD. THE LESSON YESTERDAY WAS A CONFIRMATION FOR ME THAT A LOT OF THE REASONS FOR THE MAGNIFICENT SEVEN GOING UP AT ALSO BEEN QUALITY AND THE REASON FOR BELIEVING THAT MAX SEVEN CAN CONTINUE TO DO WELL GOING FORWARD, IT WAS A CONFIRMATION. CAROLINE:

THERE IN LIES THE QUESTION OF
EARNINGS AND THE PROOF OF FUNDAMENTALS.
THE BANKS NOT LOOKING GOOD TODAY.
ALL EYES CONTINUE TO BE ON NETFLIX AS THEY COME FIRST AND THEN
SOME OF THE MAG SEVEN. CAN THEY SUPPORT THE VALUATIONS
THAT MANY ARE FACTORING IN? ANNA:
THE VALUATION COMPONENT IS THE STICKING POINT.
THE QUESTION IS HOW MUCH OF THE EVALUATION IS REFLECTIVE OF
EARNINGS, HOW MUCH IS REFLECTIVE OF AI?
THAT IS VERY DIFFICULT TO PIECE OUT. HOW DO YOU EVEN PRICE HOPE?
WE ARE SEEING AI FILTERING INTO THE CONSUMER LIFE THROUGH, I
GUESS, RUFUS WAS THE NEWS TODAY. WE STILL DON'T KNOW EXACTLY HOW
IT WOULD BE EXPRESSED IN THE PRODUCTIVITY COMPONENT, THE
LABOR MARKET. THAT IS THE STICKING POINT AND
THAT IS WHY WE ARE PRETTY MUCH

BALANCED, WE ARE VERY DIVERSIFIED. WHEN THE MARKETS SEEM TO BE IRRATIONAL, WE WRITE IT AND REBALANCE IT, AND THAT HAS BEEN OUR STRATEGY YEAR TO DATE. ED: THE WORLD WAS WATCHING LAST NIGHT IN THE CONTEXT OF NATO SUMMIT PRESS CONFERENCES AND A U.S. PRESIDENTIAL ELECTION. IF YOU ARE AN INVESTOR OPERATING IN THE TECHNOLOGY SECTOR, DO YOU LOOK AT IT AS WELL AND THINK ABOUT WHAT MIGHT HAPPEN TO THE AREAS YOU PUT MONEY DEPENDING ON THE OUTCOME IN NOVEMBER? ANNA: WELL, SO THE BIG THREAT I THINK TO BIG TECH'S REGULATION. I KNOW THERE HAS BEEN A LOT OF TALK ABOUT ONE PARTY RULE IN WASHINGTON, AND IT IS WAY TOO EARLY. I THINK THERE IS A FEAR OF THAT. IF WE DO HAVE A ONE PARTY RULE, IT IS ABOUT PASSING OF LAWS.

NOT JUST THE WHITE HOUSE.
IF THAT IS THE CASE, IT CHANGES THE LANDSCAPE FOR NOT ONLY
TECH, BUT DEFINITELY AI BECAUSE THERE IS A LOT OF FEAR AROUND
IT. THAT IS THE UNCERTAINTY FACING
US IN THE FUTURE. ED: ANNA RATHBUN, THANK.
COMING UP, THERE ARE GROWING CALLS ON THE HILL FOR A PROBE
INTO MICROSOFT'S A IDEAL WITH G 42. WE HAVE NEW DETAILS NEXT.
THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE:
KEY REPUBLICAN LAWMAKERS ARE NOW CALLING FOR A FORMAL
INTELLIGENCE PROBE INTO THE BUDDING AI PARTNERSHIP BETWEEN
MICROSOFT AND ABU DHABI FIRM G42.
A FOCUS ON THE TIES TO CHINA. WE HAVE HEARD MURMURINGS AND
WORRIES AND NOW IT IS MORE

FORMAL. WHAT IS KEY HERE? WE HAVE YESTERDAY THE HOUSE
FOREIGN AFFAIRS COMMITTEE, MICHAEL MCCAUL, AND THE CHAIRMAN
OF THE CHINA SELECT COMMITTEE CALLING FOR A FORMAL PROBE INTO
THIS PARTNERSHIP BETWEEN MICROSOFT AND G42. IT HAS ATTRACTED A LOT OF
SCRUTINY IN WASHINGTON ON ISSUES RANGING FROM HUMAN
RIGHTS TO AMERICAN TECHNOLOGY BEING DIVERTED TO CHINA.
LAWMAKERS HAVE BEEN FRUSTRATED FOR A LONG TIME ABOUT A LACK OF
TRANSPARENCY FROM THE BIDEN ADMINISTRATION.
THEY SAY IT IS NOT ENOUGH FOR THE U.S.
GOVERNMENT TO BE WORKING ON GENERAL FRAMEWORKS BEHIND
CLOSED DOORS; THEY WANT TO SEE THE INTELLIGENCE COMMUNITY
EVALUATE ALL THE NATIONAL SECURITY RISKS THEY HAVE
IDENTIFIED. ED:

YOU AND I HAVE BEEN THROUGH A SIMILAR STORY TOGETHER WITH CATL, THE CHINESE BATTERY MAKER, AND ITS RELATIONSHIPS WITH U.S. AUTOMAKERS. IT WAS THE CHINA HAWKS THAT WERE DOING THIS IN D.C. HOW ANALOGOUS IS THIS TIE? MACKENZIE: WE ARE LOOKING AT TWO DIFFERENT TYPES OF INVESTMENTS. THE CATL THING YOU MENTIONED AS A PARTNERSHIP, BUT IT IS NOT A DIRECT INVESTMENT BY FORD INTO A CHINESE COMPANY. THIS IS A CHINESE COMPANY. THE CONCERN IS THAT IF THE U.S. ALLOWS SENSITIVE AMERICAN TECHNOLOGY, EVERYTHING FROM AI MODEL WEIGHTS TO THE CHIPS NECESSARY TO STAND UP A DATA CENTER, THAT CHINA WOULD BE ABLE TO USE G 42 AND THE UAE AS

A BACKDOOR TO ACCESS TECHNOLOGY
THAT THE U.S. HAS CUT CHINA OFF FROM.
THESE ARE DIFFERENT SITUATIONS, BUT A SIMILAR TIDE OF CONCERN
THAT HAS BEEN CONSISTENT OVER THE PAST COUPLE OF YEARS. THAT
ANY DEAL BETWEEN A U.S. COMPANY AND A CHINESE COMPANY
OR A COMPANY WITH LINKS TO SANCTIONS TO CHINESE COMPANIES
POST AN INHERENT NATIONAL SECURITY RISK. ED:
MCKENZIE HAWKINS ALWAYS ON IT. REALLY APPRECIATE YOUR
REPORTING. OPENAI HAS COME UP WITH A SET OF FIVE LEVELS TO TRACK ITS
PROGRESS IN BUILDING AI SOFTWARE CAPABLE OF
OUTPERFORMING HUMANS. BLOOMBERG'S RACHEL MATZ IS HERE
WITH THE DETAILS. I SAW YOU PUT THIS OUT LAST
NIGHT ON SOCIAL MEDIA.

FROM THE EVERYDAY PERSON TO INVESTORS AND AI INDUSTRY PARTICIPANTS, THIS IS A SET OF CODIFIED RULES THAT MIGHT BE HELPFUL. WHAT ARE THEY? RACHEL: THE COMPANY HAS THESE FIVE LEVELS, AND THEY TOLD EMPLOYEES THEY BELIEVE THEY ARE ON LEVEL ONE, WHICH IS CHATBOTS SIMILAR TO JACK GDP -- CHECK GDP -- CHAT GTP. THEN THERE ARE SOME THAT HAVE MORE CAPABILITIES. THEY WANT PEOPLE TO BE A LITTLE BIT MORE AWARE OF HOW THEY ARE THINKING ABOUT THIS PROCESS OF TRYING TO BUILD ARTIFICIAL GENERAL INTELLIGENCE, WHICH HAS LONG BEEN THEIR STATED GOAL. WHETHER OR NOT THEY WILL GET THERE IS ANOTHER STORY, BUT THEY HAVE BEEN WORKING ON THIS FOR QUITE A LONG TIME. CAROLINE: TO THAT POINT, SAM ALLMAN HAS SAID, MAYBE WE GET TO AGI IN

THE NEXT DECADE. BUT HAVE THERE BEEN WHISPERINGS ABOUT HOW FAR WE COULD GET TO THE ULTIMATE LEVEL FIVE? RACHEL: I THINK EVERYBODY HAS A DIFFERENT OPINION. ONE OF THE THINGS WE HAVE TO THINK ABOUT IS THIS IS A VERY ROUGH DRAFT IN PROGRESS THING THEY ARE WORKING ON, AS THEY WERE VERY CLEAR ABOUT SAYING, AND THEY WILL BE TAKING FEEDBACK FROM ALL DIFFERENT KINDS OF PEOPLE. NOBODY CAN AGREE ON WHAT IT WOULD MEAN TO HAVE ARTIFICIAL GENERAL INTELLIGENCE, AI THAT CAN OUTPERFORM HUMANS AND DO ALL OF THE THINGS TODAY HUMANS CONCURRENTLY DO. MAYBE WE NEED TO FIGURE OUT WHAT DO WE MEAN WHEN WE TALK ABOUT THAT? WHAT WOULD THAT LOOK LIKE? CAROLINE: RACHEL METZ, ALL OVER TRYING TO

GAUGE THE RISKS TO ARTIFICIAL
INTELLIGENCE. WE WILL BE DISCUSSING THE STATE
OF CRYPTO MARKETS. THE HEAD OF STRATEGY AT KRAKEN
WILL BE JOINING US. ED: THE WALL STREET JOURNAL
REPORTING STUBHUB HAS DELAYED ITS PLANS FOR AN IPO UNTIL AT
LEAST SEPTEMBER. IN THE RATIONALE THAT IS BEING
REPORTED, IS THAT WE HAVE SOME CHOPPY MARKET CONDITIONS.
STUBHUB BEING THE ONLINE RESALE MARKETPLACE FOR TICKETS.
INTERESTING ONE. STAY WITH US. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
WELCOME BACK TO BLOOMBERG TECHNOLOGY.
I'M CAROLINE HYDE IN NEW YORK. ED:
I'M ED LUDLOW IN SAN FRANCISCO. THE STORY IS VERY MUCH LIKE FED
BETS, CUT RATE.

WE ARE LOOKING AT ECONOMIC DATA.
THE CONVERSATION WE HAD EARLIER ABOUT THINKING VALUATION IS IN
PLAY. THE NASDAQ 100 IS UP 1.2%. TESLA HAS REBOUNDED FROM ITS
BIGGEST DROP SINCE JANUARY 24, NOW UP 3.4%. THERE IS A RISK ON ATTITUDE.
I HAVE BEEN THINKING A LITTLE BIT ABOUT BITCOIN.
IT IS A RISK ASSETS FROM TIME TO TIME.
IT IS A WEEKLY GAIN OF 1.6%. I DON'T SEE A LOT IN THE MOMENT
OUT THERE. WE WERE ALL ABOUT THE LONG-TERM.
WE DO DOUBLE CHECK ON IT AND MAYBE IT IS BACK TO BEING A
RISK ASSET IN A RISK ON ENVIRONMENT. I DON'T KNOW.
CAROLINE: IF YOU DON'T KNOW, WE HAVE
SOMEONE TO ASK, THOMAS PERFUMO.

IS WITH US FROM KRAKEN.
THERE HAVE BEEN WORRIES ABOUT ISSUANCE GOING BACK. GERMAN
GOVERNMENT TO MOVING THINGS AROUND WITHIN WALLETS.
FUNDAMENTALLY, WHAT IS OUR NEXT CATALYST? THOMAS:
THERE ARE FOUR BIG CATALYSTS I'M LOOKING OUT FOR IN THE
SHORT RUN. WE ARE TALKING ABOUT THE
MACROECONOMY. CANADA AND EUROPE ALREADY
CUTTING INTEREST RATES. WHEN IS THE FED GOING TO DO IT,
AND WHAT LEVEL ARE THEY GOING TO DO IT AT?
WITH CRYPTO, THERE IS A LOT OF ATTENTION AGAIN, A LOT OF
CAPITAL FLOWS. IT IS A RISING TIDE THAT LIFTS ALL BOATS STORY.
THE U.S. ELECTION SETS THE TONE FOR
POLICYMAKING. BEYOND THAT, IT IS THE ONGOING
TREND OF ADOPTION OF BITCOIN.

GLOBAL EXCHANGE-TRADED AND
INCREASING ACCESS TO CRYPTO ETF'S IN THE U.S. CAROLINE:
WE HAVE BEEN THINKING A LOT ABOUT THE ELECTION IN THE U.S.
ED: ONE OF THE THINGS I REPORTED IS
THIS IDEA THAT VIVEK RAMASWAMY HAD ACTED AS AN INTERMEDIARY
BETWEEN ELON MUSK AND DONALD TRUMP.
ONE OF THE AREAS THEY FOUND A RENEWED COMMON GROUND WAS ON
CRYPTO. DO THEY HAVE A GAME PLAN FOR
THIS? WHAT HAPPENS IN CRYPTO MARKETS
IF IT IS BIDEN OR TRUMP OR AFTER LAST NIGHT WE MAY ASK IF
IT IS A DIFFERENT DEMOCRATIC NOMINEE, WE DON'T KNOW? THOMAS:
I'M NOT AN EXPERT ON THE POLITICAL SPECTRUM HERE, BUT
WHEN IT COMES TO THE U.S.

SPECIFICALLY, IT IS ABOUT LEGISLATIVE ACTION AND DEVELOPING CLARITY FOR THIS INDUSTRY. WHEN I THINK ABOUT THE ISSUES WE HAVE SEEN, THE PROGRESS WE HAVE MADE, IT HAS BEEN LIGHT PROGRESS ALONG THE CONGRESS WHERE THEY HAVE PASSED TWO BILLS. WHAT IS INTERESTING IS THAT SHOWCASES SOME OF THE BIPARTISAN SUPPORT THAT IS EMERGING FOR CRYPTO LEGISLATION IN CONGRESS AT LEAST. EVEN THOUGH WE HAVE HAD BARRIERS AT THE EXECUTIVE LEVEL, STILL GOOD PROGRESS GOING FORWARD. I THINK OF COURSE THE REPUBLICAN SIDE OF THINGS SEEMS TO BE MORE PRO-CRYPTO AND MORE PROGRESSIVE IN THAT SENSE, YOU HAVE TRUMP GOING IN A COUPLE WEEKS AND WE WILL SEE HOW THAT PLAYS OUT. ED: CAN I MAKE A HARD PIVOT TO FOOTBALL OR FOR OUR AMERICAN

AUDIENCE, SOCCER.
I KNOW THE PARTNERSHIP WITH ATHLETICO.
THE THING I HAVE ALWAYS THOUGHT ABOUT THEM IS THEY HAVE A
MASSIVE FOLLOWING IN LATIN AMERICA, EVEN THOUGH THEY MAY
BE OF THE SMALLER OF THE CLUBS IN THE CITY OF MADRID. THOMAS: KRAKEN WAS FOUNDED WITH AN
AMBITIOUS VISION TO BE THE MOST TRUSTED AND SECURE PLACE TO BUY
CRYPTO IN THE WORLD. YOU THINK ABOUT OUR 13 YEAR
LEGACY, PIONEERING THINGS LIKE PROOF OF RESERVES AUDITS AND
BEING A BIG SUPPORTER OF ETHEREUM WHEN IT LAUNCHED.
EVEN TODAY, MAKING CRYPTO ACCESSIBLE TO THE WORLD.
WE FEEL LIKE WE HAVE EARNED THE RIGHT TO BOAST ABOUT THIS
LEGACY, BEING IN THE MARKET FOR 13 YEARS, BUT ONLY IN THE LAST
YEAR WE HAVE STARTED TO BRING

OUR BRAND INTO THE WORLD. SO THINGS LIKE OUR F1 PARTNERSHIP OR EVEN THIS NEW PARTNERSHIP WITH ATLETICO MADRID, ONE OF THE MOST ICONIC FOOTBALL TEAMS IN SPAIN. I THINK IT IS REALLY JUST A SHOWCASE THAT WE ARE TRYING TO GET KRAKEN KNOWN GLOBALLY IN A PLACE THAT WE HAVE ALREADY OPERATED FOR A NUMBER OF YEARS, SO WE ARE REALLY PROUD OF EVERYTHING WE ARE DOING NOW.
CAROLINE: MARKETING TO AN AUDIENCE YOU WANT TO COME TO USE THE PRODUCT, BUT ALSO MAY BE MARKETING TO AN INVESTOR BASE TO MAYBE GO PUBLIC INTO? IS THAT SOMETHING YOU OR I IN?
THOMAS: I HAVE NOTHING PROPRIETARY TO SHARE, BUT ANY STRATEGIC PATHS AVAILABLE TO ACCELERATE THE ACCEPTANCE OF CRYPTO IS SOMETHING WE WILL EXPLORE.

CAROLINE: WE PARSED THE NUMBERS, AND WE LOOK AT A 58,000 HANDLE ON BITCOIN. AND WE LOOK AT WHAT THE ALT COIN SET BEEN. BUT ULTIMATELY, ARE WE STILL SEEING MONEY MOVE INTO THE OVERALL ECOSYSTEM FOR THE SECOND HALF OF THE YEAR? OR DO WE TRADE WHERE WE ARE CURRENTLY AT? 
THOMAS: A LOT OF IT HINGES ON THE THEORY OF ETF. A LOT OF THE MARKET SENTIMENT IS TRYING TO GAUGE WHAT KIND OF CAPITAL INFLOWS DO WE SEE FROM THAT EVENT? I THINK THE MARKET IS PRICING IN $750 MILLION TO $1 BILLION INTO ETHEREUM ETF PRODUCTS ON A MONTHLY BASIS. IF WE START TO MATCH THAT, THAT CREATES POSITIVE SUPPORT FOR THE INDUSTRY. IF WE SURPASS THAT, WE NOTE THAT BITCOIN WAS ON A PACE OF TWO POINT FIVE BILLION DOLLARS.

MAYBE ETHEREUM TESTS ALL-TIME HIGHS, AND A RISING TIDE LIFTS ALL BOATS. ONE LAST NOTE IS WHEN I LOOK AT THE PRIOR ALL-TIME HIGH BACK IN MARCH FOR BITCOIN, THAT IS WHAT I'M CALLING A QUIET PEAK. WE DID NOT SEE SIMILAR LEVELS OF EXTREME VOLATILITY OR SIMILAR LEVELS OF UNPRECEDENTED VOLATILITY OF SIGN-UPS ON OUR PLATFORM TO SUGGEST YOU REALLY HAD PEAK MOMENTUM OF LOTS OF PEOPLE, HUNDREDS OF MILLIONS OF PEOPLE COMING INTO THE INDUSTRY FOR THE FIRST TIME. CAROLINE: HUNDREDS OF MILLIONS. THOMAS PERFUMO, HEAD OF STRATEGY AT KRAKEN, WE THANK YOU. ED? ED: SOME OF THE OTHER BIG NEWS STORIES, A RARE FAILURE FOR

SPACEX.
THE COMPANY'S FALCON NINE ROCKET DEPLOYED 20 STARLINK
SATELLITES INTO THE WRONG ORBIT. ELON MUSK SAID A PORTION OF THE
UPPER ENGINE FAILED FOR UNKNOWN REASON.
SPACEX HAS SAID IT MADE CONTACT WITH FIVE OF THE SATELLITES AND
WILL ATTEMPT TO REPOSITION THEM USING THE ATTACHED THRUSTERS.
THE FAA HAS ANNOUNCED IT WILL REQUIRE A PROBE INTO THAT
FAILURE. I WOULD SAY THAT IS LARGELY
PROCEDURAL. SOFTBANK STRENGTHENS ITS CHIP
INVESTMENTS. IT ACQUIRED A U.K. SEMI CONDUCTOR START UP.
IT WILL OPERATE AS A SOFTBANK SUBSIDIARY AND WILL KEEP ITS
MANAGEMENT TEAM. THE FINANCIAL TERMS WERE NOT
DISCLOSED. SAMSUNG IS FACING MORE
WALKOUTS, THIS TIME AT ONE OF

THEIR MOST ADVANCED AI MEMORY
CHIP PLANTS. SEVERAL HUNDRED WORKERS JOINED
THE PROTESTS AS THE CAMPAIGN FOR HIGHER WAGES CONTINUES.
UNION LEADERS HAVE SAID THEY ARE TARGETING SMALLER, BUT
IMPORTANT COMPLEXES IN THE HOPES OF AN UP PRESSURE.
CAROLINE? CAROLINE: FASCINATING. STAY GLOBAL WITH A RUSSIAN
STORY NOW. WAGING A WAR UNDER THE SEA?
THE QUESTION HAS BEEN EMERGING AFTER A WORRYING PATTERN OF
MISSING UNDERWATER CABLES. >> IN 2021, AN UNEXPLAINED
INCIDENT OCCURRED OFF THE COAST OF NORWAY.
AN IMPORTANT UNDERSEA DATA CABLE HAD BEEN DAMAGED AND NO
ONE COULD EXPLAIN WHY. >> SOMETHING WAS OBVIOUSLY
SERIOUSLY WRONG. NOTHING WORKED ANYMORE.
NO INSTRUMENTS, NO SENSORS.

WHERE THE CABLE WAS SUPPOSED TO
BE, THERE WAS NO CABLE. YOU JUST SEE MAYHEM. >> AT THE BOTTOM OF THE WORLD'S
OCEANS LIE THE CENTRAL NETWORK OF DATA CABLES.
THEY STRETCH HUNDREDS OF THOUSANDS OF MILES AROUND THE
WORLD. >> INFORMATION FLOW,
COMMUNICATIONS, BANKING SYSTEM, FINANCIAL COMMUNICATIONS, IT IS
A VAST NETWORK, AND IT IS EXTREMELY VULNERABLE. >> DAMAGE TO ANY OF THEM COULD
BE CATASTROPHIC. >> IT COULD SPREAD A PANIC,
DISRUPT THE NORMAL FUNCTIONING OF STATES. >> IN THE LAST FEW YEARS, THERE
HAVE BEEN A WHOLE SERIES OF INCIDENTS INVOLVING UNDERSEA
CABLES. THESE MAY NOT BE FREAK ACCIDENTS.
THEY MAY ACTUALLY BE A SIGN OF SOMETHING MORE SINISTER.
SABOTAGE.

ED: THAT WAS EPIC.
THAT WAS BLOOMBERG'S JORDAN ROBERTSON.
YOU CAN CATCH THE FULL STORY ON BLOOMBERG.COM.
THERE WAS ALSO A MUCH LONGER VIDEO REPORT ON THE ISSUE.
COMING UP, WE WILL BE JOINED BY THE CEO STANDARD BOX ON THE
FRESH SERIES AROUND. THAT IS NEXT.
THIS IS BLOOMBERG TECHNOLOGY. FED CHAIR JEROME POWELL WILL BE
INTERVIEWED BY DAVID RUBENSTEIN. THIS IS BLOOMBERG. CAROLINE:
LET'S TALK ABOUT ROBOTICS, AI ROBOTICS.
THE STARTUP STANDARD BOTS HAS RAISED $63 MILLION, AND MAJORITY OF THE FUNDING COMING
FROM A MOVE LED BY GENERAL CAPITALIST. THE CEO EVAN BEARD
IS HERE. EVAN: THANK YOU FOR HAVING ME.
CAROLINE:

HOW QUICKLY DID IT COME ABOUT?
EVAN: IT CAME ABOUT QUICKLY. GENERAL CAPITALIST PREEMPTED
OUR FIRST ROUND. CAROLINE: DOES IT FEEL SLOWLY, SLOWLY,
ALL AT ONCE? EVAN: THAT IS EXACTLY RIGHT.
IT IS A MOMENT IN TIME WHERE WE REALIZED, THIS IS HAPPENING. ED:
I WANT TO GO INTO THE STRATEGIC'S.
WE HAVE DONE A LOT ABOUT AMAZON ROBOTICS IN THE WAREHOUSE.
IS THE OPPORTUNITY DOWN THE LINE IN THE MANUFACTURING
CONTEXT? WHAT ARE YOU HOPING FOR? EVAN: WE REALIZED WE COULD MAKE AN
AMERICAN-MADE ROBOT THAT IS EASIER TO USE, MORE AFFORDABLE
AND CAPABLE OF PERFORMING MANY MORE TASKS OUT THERE.
MOST ROBOTS TODAY HAVE THIS RIGID PROGRAMMING THAT IS SORT
OF LIKE CODE.

SOMETHING THAT RESEMBLES CODE.
WE ARE FOCUSED ON THIS NEW PARADIGM. IT CAN LEARN FROM THAT
AUTONOMOUSLY. ED:
WE ARE SHOWING PICTURES OF THE TECHNOLOGY. WE ARE NOT TALKING
ABOUT. WE ARE NOT TALKING ABOUT HUMANOID ROBOTS. WE ARE TALKING
ABOUT THE CUTTING EDGE OF ROBOTIC ARMS, ESSENTIALLY.
WHY IS YOURS BETTER THAN THE REST?
WE HAVE HAD SIMILAR THINGS ON THE SHOW, EVAN. EVAN:
WE DON'T NEED TO CREATE LEGS AND A TORSO TO MAKE A HUGE
IMPACT. THIS DEVICE IS SORT OF LIKE
SCISSORS, BUT IT CAN GRIP INSTEAD OF CUTTING, AND YOU CAN
SHOW HOW TO ASSEMBLE SOMETHING, SHOW HOW TO PREPARE FOOD.
IT LEARNS FROM THAT DEMONSTRATION, AND WE THINK OUR
APPROACH. IT IS A MUCH QUICKER

WAY TO MARKET, AND WE CAN TAKE IT TO MARKET THIS YEAR, AND WE ALREADY ARE WITH REALLY BIG CUSTOMERS. CAROLINE: HOW HARD IS THIS? WHAT SORT OF ACADEMIC AFFILIATIONS ARE YOU HAVING TO HAVE? IS THIS NOW ABOUT HIRING TALENT? IS IT ABOUT EXPANDING HERE IN NEW YORK? EVAN: IT IS DEFINITELY HARD. WE HAVE AN AMAZING TEAM, SO THEY GET ALL THE CREDIT. WE HAVE HIRED WITH RIVIAN, META-. WE HAVE THE BEST OF THE BEST ON THE TEAM. WE THINK THIS COULD MAKE A REALLY BIG IMPACT IN THE WORLD, SO THAT DRIVES OUR TEAM, AND IT IS A LOT OF FUN. CAROLINE: SPELL OUT THE MISSION. MANY WORKING IN MANUFACTURING MIGHT LIKE, THAT IS MY JOB. WHAT IS THE NET POSITIVE OUTCOME YOU WANT FROM THIS BUSINESS THAT DRIVES ALL THE PEOPLE TO WANT TO LEAVE RIVIAN

AND KEY COMPANIES TO COME TO YOU? EVAN: INDUSTRY STATS SHOW A SHORTAGE OF 2 MILLION WORKERS OVER THE NEXT FEW YEARS. IT IS NOT SO MUCH REPLACING JOBS IS WE HAVE THIS HUGE SHORTAGE. WE REALLY THINK THAT MOST OF THE PRODUCTS WE BUY ARE NOT MADE IN THE U.S. OR MANY OF THEM AREN'T, SO IF WE CAN BRING BACK MANUFACTURING, THAT CREATES JOBS AND IT IS BETTER FOR NATIONAL SECURITY AND PRODUCE WHERE WE USE THE ITEMS. THESE KIND OF PRODUCTIVITY BOOSTS LOWER THE COST OF FOOD AND OTHER ITEMS FOR PEOPLE WHO CAN'T AFFORD THEM THE MOST. WE THINK IT IS REALLY IMPORTANT WORK AND THERE IS A HUGE SHORTAGE RIGHT NOW SO PEOPLE CAN REST ASSURED. ED: I HAVE LISTENED TO JENSEN WONG TALK ABOUT THE BIGGEST OPPORTUNITIES TO BE UNLOCKED BY

WHAT IS HAPPENING IN LARGE LANGUAGE MODELS AND ROBOTICS IS FRONT AND CENTER. I FIND INTERESTING OR SCALE AND LOCATION IN NEW YORK. TALK TO ME ABOUT BUILDING THE COMPANY, TALENT. IS THE MONEY YOU HAVE RAISED ENOUGH? WALK ME THROUGH THE ROADMAP OF THE NEXT COUPLE OF YEARS. EVAN: WE ARE BRINGING THIS TO MARKET THIS YEAR IN A BIG WAYS. I THINK THIS IS -- OTHER THAN BEING A TV ANCHOR LIKE YOU, THIS IS ONE OF THE MOST FUN THINGS YOU CAN WORK ON IN TECH. IT HASN'T BEEN THAT HARD TO ATTRACT AMAZING TALENT. THE MISSION ORIENTED FOCUS HELPS ATTRACT TALENT AS WELL. WE HAVE DOUBLED OUR TEAM IN THE LAST 12 MONTHS. ROBOT ORDERS HAVE GONE UP 20X. WE ARE TRYING TO HIRE TO HANDLE

THE GROWTH AND ORDERS, AND WE ARE EXCITED ABOUT THE FUTURE. ED: EVAN BEARD, CEO OF STANDARD BOTS. GREAT TO HAVE YOU. EVAN: THANK YOU FOR HAVING ME. ED: WE WILL TAKE A LOOK AT X'S VIDEO AMBITIONS AND IF THEIR EFFORTS HAVE TRANSLATED INTO ANYTHING YET. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: I WANT TO TURN OUR ATTENTION TO WHAT PRESIDENT BIDEN HAS BEEN SAYING ON ANOTHER PLATFORM X. HE HAS POSTED THAT SIX WEEKS AGO I LAID OUT A COMPREHENSIVE FRAMEWORK FOR HOW TO ACHIEVE A CEASEFIRE AND BRING HOSTAGES HOME. HE IS TALKING ABOUT ISRAEL-HAMAS. THERE IS STILL WORK TO DO, BUT THAT FRAMEWORK IS NOW AGREED BY

BOTH ISRAEL AND HAMAS.
HE SAYS HE IS MAKING PROGRESS. INTERESTING NEWS ON THE SOCIAL
MEDIA PLATFORM. ED: THERE HAS BEEN A BIG
DEVELOPMENT ABOUT EUROPEAN COMMISSION AND X.
THEY SAID ACTS -- X IS THE FIRST BREACH OR OF THE DIGITAL
SERVICES ACT. KURT, YOU WILL HAVE SEEN THE
PING-PONG ON X BETWEEN ELON MUSK IN THE LAST HOUR.
EXPLAIN WHAT IS HAPPENING PLEASE. KURT: YES, I ACTUALLY HAVEN'T SEEN IT
THIS MORNING, I'M SORRY. BUT OBVIOUSLY X IS DOING A LOT
WITH THE CHECKMARKS, THAT WAS THE BIG ISSUE MOSQUE STARTED
WHEN HE TOOK OVER. HE WAS SAYING, THIS IS
SOMETHING I'M GOING TO CHARGE FOR VERSUS GIVING IT AWAY FOR
FREE.

I IMAGINE THERE ARE ISSUES WITH
HOW THEY ARE DOING THINGS - THESE THINGS OUT ABOUT PEOPLE.
IT DOES NOT SURPRISE ME THEY ARE RUNNING INTO THIS AGAIN.
CAROLINE: YES, ACROSS THE BOARD, THIS IS
SOMETHING THAT ELON MUSK WANTS TO BE ABLE TO BE BRINGING BACK
BRANDS AND BRINGING BACK THE TALK OF DRIVING FORWARD REVENUE
AND PEOPLE'S CONFIDENCE. HOW WAS HE DOING THAT WITH
VIDEO? KURT: YOU MAY REMEMBER THAT AT CES A
FEW MONTHS AGO, THEY SAID THEY WOULD REALLY PUSH INTO THIS
HIGH QUALITY, PROFESSIONALLY PRODUCED VIDEO SHOWS.
THEY ANNOUNCED A BUNCH OF PARTNERS.
DON LEMON, TULSI GABBARD, JIM ROME. THERE WAS THIS IDEA THAT X
WOULD BE A SECOND TV.

YOU WOULD WATCH THESE HIGHLY
PRODUCED THINGS ON YOUR PHONE. SIX MONTHS LATER, A LOT OF THIS
HASN'T MATERIALIZED. DON LEMON'S SHOW HAS FIZZLED
OUT. TULSI GABBARD HAS NOT POSTED
ANY SHOW. JIM ROME'S POSTING SHOWS, BUT
THERE WERE NO ADS RUNNING ALONGSIDE IT.
IT FEELS LIKE THIS BIG PUSH, THIS BIG SELL TO REBRAND X AS
THIS VIDEO DESTINATION. IN MY OPINION, IT SEEMS TO BE
REALLY STRUGGLING SIX MONTHS INTO THIS PROCESS. ED:
THE QUESTION IS EYEBALLS. ELON MUSK EMPHASIZES THIS DATA
POINT OF USER SECONDS. IF YOU GO TO A TWEET, YOU SEE
THE TWEET VIEWS. IF YOU POSTED A VIDEO, YOU GET
SEPARATE DATA.

IS THERE ANY CONFIDENCE FROM
ADVERTISERS THAT IT IS BEING WATCHED IF YOU PUT VIDEO
CONTENT TO THE PLATFORM? KURT: THIS DEBATE BETWEEN VIEWS AND
SOMEONE CONSUMING IT HAS BEEN A BIG ISSUE FOR YEARS AND NOT
JUST ON X. WE TALKED ABOUT THIS WITH META,
BEFORE INSTAGRAM AS WELL. I THINK THE ISSUE AND WHAT I
PUT IN THE COLUMN THIS MORNING, WHAT I HEARD FROM A SOURCE IS
PART OF THE REASON THE SHOWS AREN'T GETTING MADE IS THEY ARE
HAVING ISSUES WITH ADVERTISER DEMAND.
IF PEOPLE ARE THROWING MONEY AT YOU, THOSE PROJECTS USUALLY GET
MADE, BUT THE FACT THAT THEY ARE NOT SEEING THAT PROGRESS IS
A SIGN THAT THE VIEWS ARE PROBABLY NOT THERE.
ADVERTISERS WILL GO WHERE THEY GET EYEBALLS.
AS YOU KNOW, IF THERE IS AN

AUDIENCE, THERE ARE ADVERTISERS
THAT WANT TO REACH THEM, AND THERE IS NOT THAT INTEREST
RIGHT NOW, AND THAT IS A TELLING SIGN. CAROLINE:
HOW ARE THINGS INTERNALLY AT X RIGHT NOW? KURT:
I THINK IT IS TOUGH BECAUSE THERE IS A LOT OF COST-CUTTING. EARLIER THIS YEAR, THEY BROUGHT
BACK IN STEVE DAVIS, AND HE WAS THE GUY WHO DID THE INITIAL
COST CUTS WHEN ELON MUSK TOOK OVER. HE LOOKED AT LAYOFFS THAT
HAPPENED. THEY ARE AT THIS PLACE WHERE
THEY ARE TRYING TO LEVEL SET THE BUSINESS, AND IT HAS BEEN
COMING UP ON TWO YEARS, AND IT IS NOT AN ENCOURAGING SIGN WHEN
THEY ARE STILL CUTTING COSTS TWO YEARS INTO THIS NEW VENTURE.
ED: KURT WAGNER, THANK YOU.

I APOLOGIZE.
I DID NOT MEAN TO PUT YOU ON THE SPOT.
SINCE WE HAVE BEEN ON AIR, ELON MUSK HAS BEEN POSTING AT
OFFICIALS. THE SHORT IS THAT ELON MUSK'S
PLATFORM X HAS BEEN HIT WITH A WARNING FROM THE EU ABOUT
DECEIVING THE USERS WITH HARMFUL CONTENT.
THAT PROMPTED THE BACK-AND-FORTH.
THE REGULATORS SAYS THEY ARE WORRIED THAT BLUE CHECKMARKS
ARE TRICKING USERS INTO BELIEVING THESE ARE SAFE, WHEN
THERE IS EVIDENCE OF MOTIVATED MALICIOUS ACTORS ABUSING THE
CHECK MARK SYSTEM. I WOULD SAY I WROTE TO SOME
STAFF AT X AND OFFER THEM AN OPPORTUNITY TO COME ON THE SHOW
TO RESPOND TO THIS PRE-LIM MORNING, BUT NO RESPONSE.
CAROLINE: MAY BE MONDAY. ED:

MAYBE. CAROLINE: YOU AND I HAVE A PRETTY
INTEGRAL SOCCER/FOOTBALL MATCH TO WATCH.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY FOR NOW.
ED: THE EUROS AND COPA AMERICA, I'M
EXCITED FOR MONDAY. THERE WAS SO MUCH HAPPENING IN
THE SHOW. RECAP ON THE PODCAST. YOU KNOW
EXACTLY WHERE TO FIND IT. GOOD LUCK TO ENGLAND, FOR THOSE
OF YOU THAT ARE SUPPORTING. GOOD LUCK TO ALL THE OTHER
TEAMS PLAYING THIS WEEKEND.

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