Early-Stage AI Investments Pay Off

Array Ventures invests in early-stage AI companies solving practical problems, often led by experienced operators from big tech firms.

### Micron's Struggles Continue Despite 90% Revenue Growth Forecast; Nvidia's AGM Recap; Hedge Funds Dump Tech Stocks
* 📉  Despite predicting a **90% year-over-year revenue increase**, Micron faces a **6% stock decline** due to struggles in its legacy businesses like flash memory.
* 🧠  Nvidia's recent AGM saw CEO Jensen Huang reiterating the company's vision of leading an "**industrial revolution**," but **no new product announcements** were made.
* 📉  Hedge funds have been aggressively selling tech stocks, with the tech sector experiencing the **largest net selling since 2017**.
* 🚀  SpaceX achieved a **$210 billion valuation** in its latest tender offer, up from $180 billion in December, making it the **second most valuable startup globally**.
* 🛍️  Amazon plans to launch an online storefront for **low-priced apparel and home goods**, countering the rise of **discount competitors**.
* 🚨  California police raided a warehouse filled with **allegedly stolen merchandise**, with thieves increasingly targeting **entire cargo containers**.
* 💰  Webtoon, a South Korea-based company, went public in the U.S. with a market value of about **$2.7 billion**, highlighting the trend of **international companies seeking U.S. listings**.
* 🌏  The U.S., Japan, and South Korea announced plans to **strengthen tech relations** and build more **resilient supply chains** in key sectors like **semiconductors and AI**.

### Array Ventures Founder Shruti Gandhi on Investing in Early-Stage AI Startups and the Importance of Operator-Led Ideas
* 🧠 " AI has been distributed into two categories: model companies and applications. Investing in model companies can be a **race to the bottom**, so we focus on investing in **early-stage application layer companies** that solve **specific pain points**.
* 🔍 " To identify viable early-stage AI startups, we look for founders who are experienced operators at big companies and are **unable to solve important AI-related problems within their current organizations** due to **lack of budget or permission**.
* 💸 " We make pre-seed investments, which are the **first checks ever written into a company**. Since these companies don't require a lot of money to validate their ideas, we can invest with **relatively small amounts**.
* 📈 " We don't consider ourselves as one-stage investors and usually aim to stay with the companies until **M&A or IPO**. Occasionally, we may **sell a small portion of our shares**.
* 🏦 " Block CFO and COO Amrita Ahuja mentions that the company allocates **10% of gross profit to Bitcoin products each month**, as it helps them learn about aspects like **custody and treasury management**.
* 📈 " In Q1, Block was growing **22% year-over-year**, demonstrating **significant growth potential** by serving the needs of its customers with **technology and AI-driven products**.
* 🔒 " A recent cyberattack against lab service provider Synovis in the UK led to the release of **sensitive medical records**, impacting hospitals' **blood testing capabilities**. The Russian-linked criminal hacking gang behind the attack dumped a **huge amount of stolen data** online, affecting patients across the UK and Ireland.

>> FROM THE HEART OF HER INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: TIME, CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. BLOOMBERG TECHNOLOGY. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: MICRON FALLS AS THE FORECAST -- FULL COVERAGE IS AHEAD. ED: SPACEX NOT IS A $210 BILLION VALUATION IN ITS LATEST TENDER OFFER. CAROLINE: WE GO LIVE TO SANTA ANA, CALIFORNIA, AS POLICE RADIO WAREHOUSE SUSPECTING -- RAID A WAREHOUSE WITH MERCHANDISING HEADING FOR PLACES LIKE AMAZON. FIRST, WE CHECK IN ON THE

MARKETS.
A LITTLE REPRIEVE TO SOME SELLING WE SAW EARLIER IN THE
TRADING. THE BAD NEWS IS GOOD NEWS ON
THE MACRO FRONT. SOME OF THE JOBLESS CLAIMS DATA
AND THE HOUSING SALES DATA AND THE INDUSTRIAL PRODUCTION DATA
ARE WEAKER. ALL EYES ARE ON MACRO POLICY.
WE ARE UP 13 POINTS ON THE NASDAQ.
I'M LOOKING AT THE TEN-YEAR YIELD.
MONEY MOVING INTO THE MARKET ON THE BACK OF THAT DATA AND MORE
SUPPLY COMING FROM THAT SEVEN-YEAR SIDE OF THINGS.
I'M LOOKING AT THE DOLLAR DOWN VERSUS THE JAPANESE YEN.
WE HAVE SEEN SUCH WEAKNESS. WILL WE SEE INTERVENTION FROM
THE BOJ? WE ARE CURRENTLY TRADED AT 160.
LET'S LOOK AT THE WORLD OF BITCOIN.
WE ARE AT ABOUT A $61,000

HANDLE. WE HAVE SEEN SIGNIFICANT
SELLING GOING ON, BUT FOR NOW WE ARE UP MORE THAN A PERCENTAGE
POINT. A LITTLE BIT OF A RISK APPETITE
COMING INTO CRYPTO. ED: I WILL GO RIGHT TO PRIVATE
MARKETS AND START WITH HIS BIG STORY AROUND SPACE X.
A VALUATION OF $210 BILLION. THAT'S BASED ON THE LATEST
TENDER. A TENDER IS WHERE THE COMPANY
BASICALLY LETS EMPLOYEES AND INSIDERS SELL THEIR SHARES TO
INVESTORS FOR LIQUIDITY. BECAUSE HE WAS ON A PRICE TO
THE SHARES, YOU'RE ABLE TO ESTABLISH A VALUATION.
THIS IS A CUSTOM CHART ON THE BLOOMBERG TERMINAL.
WE MAKE IT USING THE BLOOMBERG NEWS REPORTS GOING BACK MANY
QUARTERS AND YEARS, BUT THE LATEST DATA FROM PITCH BOOK.
180 BILLION DOLLARS WAS THE

VALUATION WE REPORTED IN DECEMBER OF LAST YEAR. WE ARE UP TO $210 BILLION.
LATER, WE WILL GO TO KATIE RUTH, WHO HELPED BREAK THE STORY.
THERE IS SO MUCH TO DISCUSS AROUND THIS COMPANY, BUT ALSO
THE IDEA THAT IF YOU'RE A MASSIVE GROWTH STAGE NAME, WHY
GO PUBLIC? PRIVATE MARKETS ARE THERE TO
SUPPORT YOU. MICRON IS THE BIG EARNINGS
STORY. THEY GAVE THIS SALES FORECAST.
AT THE MIDPOINT WAS BANG ON WHAT THE STREET WAS LOOKING FOR.
REALLY HIGH EXPECTATIONS. THERE'S A STORY ABOUT
HIGH-BANDWIDTH MEMORY. IT GETS COUPLED WITH AI
ACCELERATORS LIKE NVIDIA'S PAGE 200. -- H200. WHY IS MICRON NOT DOING WELL?
IT'S LEGACY BUSINESSES. FLASH MEMORY AND THE CYCLICAL
MARKETS THEY GO INTO.

THE STOCK IS DOWN 6% IN THE SESSION RIGHT NOW. CAROLINE: WHAT IS A CEO TO DO WHEN THEY'RE POSTING REVENUE GROWTH OF MORE THAN 80%? LET'S DWELL ON THAT FOR A MOMENT. A CLOSER LOOK AFTER THE EARNINGS REPORT. THE FOLLOW-UP FOR NVIDIA IS CURRENTLY DIGESTING. THAT MEETING HAPPENED ON WEDNESDAY. IAN KING, GO TO MICRON FIRST. IT FEELS AS THOUGH THEY COULD NOT MEET THE HIGHEST MARK OUT THERE FOR THE ESTIMATES. IAN: YOU ARE ABSOLUTELY RIGHT. THEY ARE PREDICTING REVENUE WILL BE UP 90% FROM WHERE IT WAS A YEAR AGO, ALBEIT THAT'S EASY GIVEN HOW BAD LAST YEAR WAS. IT'S ALL ABOUT HOW MUCH REAL DEMAND ARE YOU GETTING FROM AI?

HOW MUCH OF THAT HIGH-MARGIN PRODUCT ADDS -- ED'S FAVORITE MEMORY CHIP ARE YOU SHIFTING AND MAKING MONEY FROM? ED: THANK YOU FOR THAT. I CONVINCED YOU TO MAKE THE VIDEO WE MADE ABOUT HIGH-BANDWIDTH. IOU. -- I OWE YOU. WE KNOW IT SALES ARE IN THE QUARTER GONE AND THE CURRENT PERIOD AND THE NEXT FISCAL YEAR. YOU CAN SEE A CLEAR PATH. AS THE INVESTMENT IN AI INFRASTRUCTURE RAMPS UP, SO TO SALE OF HIGH-BANDWIDTH MEMORY. IAN: ABSOLUTELY. 100 MILLION DOLLARS, WHICH IS RELATIVELY SMALL FOR THE QUARTER REPORTED. GOING TO MULTIPLE HUNDREDS OF MILLIONS OF DOLLARS AND MULTIPLE BILLIONS NEXT YEAR. WHEN YOUR COMPANY THAT HAS ABOUT $6 BILLION OF SALES A QUARTER THAT'S A GOOD SIGN.

A VERY GOOD SIGN. CAROLINE: ALL OF THIS IS IN COMPARISON TO
WHAT NVIDIA HAS BEEN TURNING OUT. I'M LOOKING AT NVIDIA DOWN
1.7%. IT'S BEEN VOLATILE. WHAT HAPPENED AT THE AGM
YESTERDAY? IAN: WE ARE NOT ALLOWED TO CALL IT
AN AGM. THAT'S AN ENGLISH THING. THEY REALLY CAME OUT AND
REITERATED THIS PITCH THEY HAVE GIVEN US.
THIS NEW INDUSTRIAL REVOLUTION. THE PRODUCTS ARE BECOMING MORE
VITAL TO THIS GIANT CHANGE IN THE ECONOMY.
WE DID NOT GET ANYTHING NEW. IF THERE WAS AN X VACATION THAT
JENSEN WOULD POP OUT NEW -- EXPECTATION THAT JENSEN WOULD
POP OUT NEW NUMBERS, IT WAS HIM BEATING HIS FIST AGAINST HIS
CHEST AND SAYING LOOK HOW WELL DONE. ED:
IT WAS A MOST VERBATIM WHAT

THEY SAID IN MAY ABOUT EARNINGS
AND DEBT. EVEN SO, THERE IS SO MUCH
ATTENTION ON NVIDIA NOW. IAN KING, THANK YOU SO MUCH.
LET'S GET MORE ON BIG TECH. THE NET SELLING IN THE TECH
SECTOR HAS BEEN THE LARGEST ON RECORD SINCE 2017.
HEDGE FUNDS AGGRESSIVELY SELLING TECH STOCKS AFTER THE
RISE OF NVIDIA. JESS MENTON JOINS US NOW FOR
MORE. THE MARKETS ARE FUNNY THING AND
I DON'T WANT TO SAY FICKLE. I REMEMBER YOU COMING ON THE
SHOW MONTHS AGO AND TALKING ABOUT THIS FOMO TRADED THE
BEGINNING THE YEAR. NOW WE HAVE THE NEXT SELLING.
EXPLAIN WHAT THE MARKETS ARE DOING NOW. JESS:
HOW CAN YOU HAVE THIS NET SELLING IN HEDGE FUNDS BUT JUST
LAST WEEK WE HAD THE BANK OF

AMERICA EPF. ARE DATA SHOWING WE
HAD RECORD FLOWS GOING INTO TECHNOLOGY STOCKS?
IF YOU LOOK AT A PIE CHART, WHEN IT COMES TO THE FLOWS DATA,
IT'S ONLY ROUGHLY AROUND 20%. YOU CAN HAVE THOSE RECORD
INFLOWS, BUT THE OTHER PORTION, IF YOU'RE LOOKING AT 70%, THAT
COMPOSES OF HEDGE FUNDS, INSURERS, PENSIONS.
YOU CAN HAVE BOTH HAPPENING, BUT HAS CONTRIBUTED A BIGGER PORTION
TO THAT. YOU CAN HAVE MUTUAL FUNDS
HAVING THAT RECORD EXPOSURE, BUT HEDGE FUNDS DOING SOMETHING
ELSE. IT'S NOT JUST TECHNOLOGY. IT'S MORE GEARED TOWARDS CHIP
STOCKS. CAROLINE: MAYBE HEDGE FUNDS ARE GETTING
MORE RISK-AVERSE, MORE BROADLY. THEY ARE COMING OUT OF MOMENTUM.
IS THE HEDGE FUND TRYING TO BE

THE CANARY IN THE COAL MINE?
RETAIL IS POURING IN, MUTUALS ARE POURING IN, AND WE ARE
STARTING TO GET OUT NOW. JESS: NORMALLY, IF YOU LOOK AT RETAIL,
IT'S A BIT OF A CONTRARIAN INDICATOR TO YOUR
POINT. IF THEY'RE PILING IT IN HEDGE
FUNDS, THE SMART TYPE OF MONEY AND HOW THEY ARE POSITIONING,
THAT SHOWS YOU THEY ARE MOVING TOWARDS DEFENSIVE AREAS OF THE
MARKET, BUT ALSO A PART OF THAT IS UTILITIES.
THAT HAS BEEN IN AI TYPE OF PLAY.
USUALLY IS TYPICALLY THOUGHT OF AS LESS VOLATILE IN A SLOWER
ECONOMIC REGIME. THE ECONOMY HAS BEEN HOLDING UP
WELL. THE LATEST FED GDP NUMBERS FOR
THE SECOND QUARTER AROUND 3%. YOU ARE SEEING HEDGE FUNDS
PULLING OUT WHEN IT COMES TO

THOSE CHIP AND TECHNOLOGY-TYPE SHARES. EVEN THOUGH IT IS MORE DEFENSIVE, THEY ARE GOING TO OTHER AI PLAYS, INCLUDING UTILITY STOCKS. ED: I GET THE CONCERN OVER HOW LONG A RALLY IN A PARTICULAR SECTOR NAME CAN LAST. I HAVE TO REMIND MYSELF OF THE INCREDIBLE GAINS EITHER ON A YEAR-TO-DATE BASIS OR 12-MONTH BASIS. AT SOME POINT, YOU HAVE TO SAY THE GOING HAS BEEN GOOD, BUT IT MIGHT NOT LAST THAT LONG. JESS: I FEEL LIKE WE WERE TALKING ABOUT THIS A YEAR AGO. AFTER A RECORD FIRST HALF, WE WERE LOOKING AT FOR THE S&P 500 AND NASDAQ 100. HOW MUCH LONGER CAN IT CONTINUE? GINA MARTIN ADAMS HAD SOME REALLY GREAT DATA LOOKING AT BREADTH. THE DATA SHOWED THEY COULD CONTINUE FOR A WHILE, AND IT HAS.

THEY PUT OUT DATA SHOWING ANY TIME SOME THING LIKE THIS HAPPENS, PEOPLE LIKE TO TALK ABOUT BUBBLE BEHAVIOR. THEY ARE NOT SEEING THAT. IF YOU'RE LOOKING AT THE STOCKS, THE PHILADELPHIA SEMICONDUCTOR INDEX, IT'S TRADING AT ITS ALL-TIME HIGHS, AT EVEN HIGHER THAN ABOUT THAT IN MARCH OF 2000. SOMETIMES WE TALK TO SOURCES AND MAYBE THINGS HAVE GOTTEN A BIT AHEAD OF THEMSELVES. EVEN THOUGH PEOPLE TALKED ABOUT NVIDIA RECENTLY ENTERING A CORRECTION, OFF OF 10% OFF THE MOST RECENT HIGH, IT WAS TRADING AROUND $550 IN THE MIDDLE OF JANUARY. THE STOCK SPLIT. IT'S BEEN QUITE A TEAR. SOMETIMES IF YOU BRING UP THE CORRECTION AND TALLY WITH NVIDIA, SOMETIMES YOU WILL GET

SOME RULES FROM TRADERS.
CAROLINE: STEVE EISMAN CALLING IT JUST A BLIP. COMING UP, PRIVATE MARKETS. SPACE X NOTCHING THE $210 BILLION VALUATION IN HIS LATEST OFFER. THAT IS MORE OF DISNEY'S MARKET CAP. ED: I GOT BACK FROM VACA. T-MOBILE IS MY CARRIER. IT WORKED FINE. VERIZON AND AT&T, A LOT OF COMPLAINTS ABOUT THE SERVICE NOT WORKING OVERSEAS OR BROAD. THERE ARE SERVICE DISRUPTIONS IF YOUR COMPANY -- CUSTOMER OF THOSE NETWORKS. JULIAN TAN HAS THAT STORY ON THE BLOOMBERG. VERIZON DOWN .7%. AT&T DOWN .3%. THERE IS CONCERN IF YOU LEAVE THE COUNTRY YOU WILL NOT BE ABLE TO GET YOUR DATA OR MAKE

YOUR TEXTS.
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
LET'S TALK PRIVATE MARKETS. SOFTBANK'S VISION FUND IS
INVESTING IN PERPLEXITY AI. THEY ARE INVESTING BETWEEN $10
MILLION AND $20 MILLION INTO THE STARTUP.
THAT'S PART OF A LARGER $250 MILLION FUNDING ROUND THAT
SHUFFLES PERPLEXITY'S VALUATION TO $3 BILLION, MAKING IT ONE OF
THE MOST HIGHLY VALUED COMPANIES IN THE INDUSTRY. SPACEX, IT IS NOTCHING A $210
BILLION VALUATION AS ARE SELLING SHARES AT $212 APIECE.
IT BOOSTS THE VALUE OF THE SPACE AND SELECT COMPANY FROM
$180 BILLION BACK IN DECEMBER, MAKING IT THE SECOND WAS
VALUABLE STARTUP IN THE WORLD. JOINING US IS KATIE RUTH.
IT IS THE MOST VALUABLE IN THE

U.S. EVER. KATIE:
BYTEDANCE IS THE MOST VALUABLE IN THE WORLD. BUT FOR THE U.S.,
SPACEX SURPASSES ITS OWN RECORD. IT'S AT 210 BILLION DOLLARS, UP
FROM 100 DOLLARS IN DECEMBER. ED:
THERE IS SUCH INTENSE INTEREST IN SPACEX AND GETTING A PIECE
OF IT. IT IS WORTHWHILE FOR OUR BLOOMBERG TECHNOLOGY AUDIENCE
AROUND THE WORLD. EXPLAIN THE MECHANICS OF HOW THE TENDER
OFFER WORKS. WHY US LEARNING FROM SOURCES
THE SHARE PRICE IS IMPORTANT IN THE MATH. KATIE:
THAT IS INSIDERS LIKE EMPLOYEES SELLING THEIR SHARES TO OTHER
PRIVATE INVESTORS. THE TENDER OFFER IS DIFFERENT
THAN SECONDARY WHERE PEOPLE ARE DOING ONE-OFF TRADES.
IT'S MORE MEANINGFUL BECAUSE IT

MEANS THE COMPANY SIGNED OFF ON
THIS VALUATION, AND THEY ARE DOING A LARGE TRANSACTION WORTH
HUNDREDS OF MILLIONS OF DOLLARS OF SHARES.
HUNDREDS OF MILLION OF DOLLARS TRADE HANDS. THIS IS MEANINGFUL FOR SILICON
VALLEY WHEN THEY ARE LOOKING AT PRICES AND SEEING COMPANIES CAN
STILL RAISE HIGH PRICES RIGHT NOW, EVEN IF THEY'RE NOT AI.
IT SURPASSES SPACEX'S OWN RECORD. ED: KATIE ROOF, LATE-NIGHT BUT
IMPORTANT REPORTING FROM YOU. YEAH, I SAW THIS COMING A
LITTLE BIT. ANOTHER STORY WE ARE WATCHING
IS SHARES OF AMAZON NOW, AS IT PLANS TO LAUNCH AN ONLINE
STOREFRONT FOR LOW-PRICED APPAREL AND HOME GOODS, MARKING
THE COMPANY'S BIGGEST PUSH TO COUNTER THE RISE OF DISCOUNT
COMPETITORS LIKE TIMU.

THE PLANS OUTLINED IN SLIDES
POSTED TO ITS WEBSITE FOR THIRD-PARTY CHINESE SELLERS,
SHOWING AMAZON SHIPPING GOODS DIRECTLY TO CUSTOMERS FROM
CHINA. BREAKING NEWS JUST MOMENTS AGO.
CALIFORNIA POLICE HAVE RATED A SOUTHERN CALIFORNIA WAREHOUSE
FILLED WITH ALLEGEDLY STOLEN MERCHANDISE. THEY SAY LIKELY
WOULD HAVE ENDED UP ON ONLINE MARKETPLACES RUN BY AMAZON AND
OTHER RETAILERS. BLOOMBERG'S SPENCER SOFA ON THE
GROUND WITH LOWER ENFORCEMENT. GIVE US THE BASICS OF WHERE YOU
ARE AND WHAT HAS HAPPENED. SPENCER:
WE ARE IN SANTA ANA, CALIFORNIA JUST OFF INTERSTATE FIVE IN A
WAREHOUSE THAT'S A RETAIL LIQUIDATION CENTER.
IT COULD BE LEGITIMATE.

BUSINESSES THAT GET SCRATCHED
AND DENTED MERCHANDISE AND RETURNS, AND THEN THEY GO ABOUT
SELLING IT. THIS RAID THAT HAPPENED AN HOUR
AGO, CALIFORNIA HIGHWAY PATROL CARGO THEFT DIVISION HAD
INFORMATION THERE COULD BE STOLEN MERCHANDISE INSIDE.
THEY EXECUTED A SEARCH WARRANT THIS MORNING.
WE HAD ABOUT A DOZEN OFFICERS SWARMED THE SCENE.
THEY SECURE THE FACILITY. THEY ARE GOING THROUGH A
PORTERHOUSE. THERE ARE BOXES FROM
FLOOR-TO-CEILING OF ALL KINDS OF STUFF.
VACUUM CLEANERS, PET FOOD, AIR FRYERS, ALL KINDS OF THINGS YOU
CAN IMAGINE. THEY ARE TRYING TO SIFT THROUGH
THAT STUFF TO DETERMINE IF ANYTHING HAS BEEN STOLEN AND IF
THEY CAN TRACE IT BACK TO

PREVIOUS THEFT. CAROLINE:
THIS IS A BIG OPERATION. THEY HAVE YOU ON BOARD TO
WITNESS IT. THIS IS CLEARLY IMPORTANT TO
THEM. HOW ECONOMICALLY IMPORTANT IS
IT TO COMPANIES THAT ARE LOSING THEIR GOODS LIKE THIS? SPENCER:
THAT'S A GREAT QUESTION. EVERYONE IS FAMILIAR WITH
SHOPLIFTING. YOU SEE CELLPHONE VIDEOS OF
PEOPLE LOADING UP A SHOPPING CART FULL OF STUFF AND RUNNING
OUT OF THE STORE. THIS IS FAR MORE SERIOUS AND
MORE SOPHISTICATED. THEY ARE STEALING ENTIRE CARGO
CONTAINERS. ONE HAUL COULD BE A COUPLE
HUNDRED THOUSAND TO UP TO $20 MILLION OF CARGO.
THE LOSSES GET VERY HIGH VERY QUICKLY. IT'S BEEN ON THE RISE.
THE NUMBER OF CARGO THEFT

REPORTED IN THE U.S. IN THE FIRST QUARTER OF THIS YEAR WERE NEARLY 1000. THAT WAS UP MOST 50% FROM A YEAR EARLIER. IT'S BEEN GOING UP WITH NO END IN SIGHT. THE THIEVES ARE GETTING SOPHISTICATED. THEY ARE IMPERSONATING LEGITIMATE TRUCKING COMPANIES, GOING TO WAREHOUSES TO PICK UP ENTIRE TRUCKLOADS OF INVENTORY. THEY ARE SUPPOSED TO BE THE ONES PICKING IT UP AND TAKING OFF WITH IT. THEN A DELIVERY IS NEVER MADE OR SUPPOSED TO BE, AND THAT'S WHEN DID DISCOVER THE THEFT WAS MADE DAYS LATER. IT'S A REALLY BIG PROBLEM THAT INFLICTS A LOT OF DAMAGE. ED: SPENCER SOFA I -- SOPPA ACCOMPANIED LAW ENFORCEMENT WHERE THEY SEIZED ALLEGEDLY STOLEN MERCHANDISE BOUND FOR

AMAZON. THAT IS A FIRST FOR THIS PROGRAM, I THINK, AND PROBABLY THIS NETWORK.
COMING UP, WE ARE JOINED BY JEFF THOMAS, EXECUTIVE VICE
PRESIDENT OF NASDAQ'S CORPORATE PLATFORM BUSINESS, ON THE IPO
LANDSCAPE. WE WILL BE RIGHT BACK.
THIS IS BLOOMBERG TECHNOLOGY. ED: TIME FOR TALKING TECH.
OPENAI MAKES A DEAL WITH TIME, THE MAKER OF CHATGPT, AS PART OF
THE MAGAZINE, AND A MULTIYEAR AGREEMENT THAT WOULD ALLOW
ACCESS TO CURRENT AND HISTORICAL CONTENT.
IN RETURN, CHATGPT USER QUERIES WILL LINK ANSWERS BACK TO THE
ORIGINAL SOURCE ON TIME.COM. TIME WILL HAVE ACCESS TO
OPENAI'S TECH. THE U.S., JAPAN, AND SOUTH KOREA
MAKE A PLACE FOR STRONGER TECH RELATIONS.
THEY SAY THEY WILL WORK CLOSELY

ON BUILDING UP MORE RESILIENT SUPPLY CHAINS TO ADDRESS WEAKNESSES IN KEY TECH SECTORS LIKE SEMICONDUCTORS AND AI. IT COMES AMID RAPID EXPANSION OF COMPETITION FROM CHINA AND THE CHIP SECTOR. WE BTOON COMICS SOLD 15 MILLION SHARES AFTER MARKETING THEM FOR 18 DOLLARS TO $21 EACH. WEBTOON HAS A MARKET VALUE OF ABOUT $2.7 BILLION AT THE IPO PRICE. WE SPOKE WITH THE CFO DAVID LEE. HERE'S WHAT HE HAD TO SAY ON HOW THEY WILL USE THE CASH. DAVID: WE WILL SPEED UP AND DEEPEN THE TOOLS WE GIVE ANY CREATOR GLOBALLY TO BE A GLOBAL HIT. MANY STORIES YOU COME TO SEE ON AMAZON PRIME OR NETFLIX, THE TOP SHOWED TODAY IS POWERED BY OUR PLATFORM. YOU WILL SEE IS CONTINUE TO

DELIGHT MORE AND MORE CONSUMERS IN THE UNITED STATES AND THE REST OF THE WORLD AND INVEST BEHIND OUR CREATORS. CAROLINE: I WANT TO TALK MORE ABOUT THIS RIGHT NOW. THE INTERNATIONAL FLAVOR OF THEM. JEFF THOMAS IS WITH US. WE WILL BE ASSESSING THE IPO LANDSCAPE. JEFF, TODAY IS A BIG DAY FOR WEBTOON AND THE SOUTH KOREA-BASED NEVER THAT BACKS IT. W ARE SEEING MORE COMPANIES COMING TO THE U.S. TO LIST? JEFF: NASDAQ'S HAD 64 IPO'S AND HALF OF COME FROM INTERNATIONAL. WE HAD WEBTOON, SUPERHIGH OUT OF ASIA, FLORIAL AT OF SPAIN. -- OUT OF SPAIN. THEY CAN GET BETTER VALUATION AND THE CAPITAL MARKETS ARE WIDER AND DEEPER IN THE U.S.

CAROLINE: THAT IS NOT -- ED.
THAT IS NOT HUMAN FORMALLY TRUE. THE CHAT AROUND SHIAN IS
INTERESTING. THEY ARE LOOKING AT LONDON-BASED ON THE POLITICAL
TENSION BETWEEN THE U.S. AND CHINA.
THAT WAS A HEADLINE THAT CROSSED WELL I WAS ON VACATION.
I WAS SURPRISED TO SEE IT. WHAT WITH THE FACTOR IN THE
CASE BE TO YOUR MIND? JEFF: THERE'S ALWAYS A UNIQUE ASPECT
EVERY DEAL. WHAT WE ARE FOCUSED ON IS
TRYING TO PROVIDE A GREAT PLATFORM TO SUPPORT ALL OF OUR
COMPANIES ACROSS THE WORLD. THAT INCLUDES HAVING A GREAT
TRADING PLATFORM, SUPPORTING COMPANIES WITH OUR INVESTOR
RELATIONS AND SITES, AND HELPING THEM ON THEIR JOURNEYS.
CAROLINE: ARE THERE OTHER CHINESE
COMPANIES EYEING THE U.S.?

-- FEWER CHINESE-RELATED NAMES.
EYEING THE U.S. GO PUBLIC? JEFF: PLEASE SEE A LOT OF STRONG
DEMAND FROM AROUND THE GLOBE. IT IS NOT JUST CHINA.
WE HAVE A LOT OF INTEREST OUT OF SOUTHEAST ASIA.
NOT JUST KOREA, BUT VIETNAM, AND LOTS OF OTHER COUNTRIES OVER IN
ASIA ARE LOOKING TO COME TO THE U.S. ED:
VINFAST IS INTERESTING EXAMPLE OF THE NAMES FROM THE REGION IN
THE MARKET. I'M TRYING TO GET A BIGGER
PICTURE SENSE OF WHAT'S GOING ON.
WE HAD THIS POCKET OF LISTINGS IN SEPTEMBER OF LAST YEAR, AND
WE STARTED THE YEAR WITH SOME ENERGY.
WE ARE SHOWING A GRAPHIC ON THE SCREEN NOW OF ALL THE VC-BACKED
NAMES THAT HAVE BEEN WAITING FOR AGES TO ACTUALLY GIVE US A
SIGNAL ONGOING PUBLIC.

WHERE ARE WE IN THIS MARKET BROADLY AT THIS MOMENT IN TIME? JEFF: WE HAVE A VERY STRONG PIPELINE OF VC-BACKED TECH COMPANIES LOOKING TO GO PUBLIC IN THE NEXT 12 TO 18 MONTHS. THIS YEAR THE STORY HAS BEEN MORE ABOUT PRIVATE EQUITY-BACKED COMPANIES, COMPANIES, AND THE HEALTH CARE SECTOR. WE HAD GREAT NAMES OUT OF BIOTECH. WE HAD LINEAGE LOGISTICS FILE PUBLICLY YESTERDAY, THE LARGEST COLD STORAGE REIT IN THE U.S.. A LOT OF THE MORE STEADIER GROWTH HIGHLY PROFITABLE COMPANIES, AND SOME OF THE VENTURE-BACKED TECH COMPANIES WE SEE MORE ACTIVITY OUT OF THOSE IN 2025. CAROLINE: WE WERE HEARING HOW WE HAVE ANY RECORD SETTER FOR EVALUATION IN THE U.S. PRIVATE MARKETS.

THAT BEING SPACEX.
MANY THINK THAT ELON MUSK WOULD EYE A TEXAS-BASED EXCHANGE FOR
WHEN THAT BECOMES A REALITY. WHAT DO YOU THINK OF THE
COMPETITION? JEFF: FRANKLY, WE ENDORSE COMPETITION.
THE U.S. CAPITAL MARKETS ARE UNIQUE, AND
WE NOT ONLY COMPETE FOR LISTINGS IN THE U.S.,
BUT WE ALSO COMPETE FOR THE TRADING VOLUME.
THAT IS THE WAY THE SEC SET UP THE MARKET STRUCTURE IN THE U.S.
IT'S HIGHLY COMPETITIVE. THERE ARE 16 DIFFERENT
EXCHANGES IN THE U.S., DOZENS OF DIFFERENT INTERNALIZES, AND
DARK POOLS ACROSS THE U.S.. THAT COMPETITION IS ONE OF THE
THINGS THAT DRIVES SUCH GREAT OUTCOMES FOR OUR LISTED
COMPANIES.

THAT IS WHY WE INVEST SO MUCH
IN TECHNOLOGY TO PROVIDE A GREAT TRADING PLATFORM, AND HAVE
TO DIFFERENTIATE OUR VALUE PROPOSITION TO PROVIDE GREAT
MARKETING AND VISIBILITY TO OUR LISTED COMPANIES.
OF COURSE, ALL THE DATA AND INSIGHTS TO HELP THEM
UNDERSTAND WHO IS BUYING AND SELLING THEIR STOCK EVERY DAY.
ED: IF YOU ARE SPACEX, WHY GO
PUBLIC WHEN THE PRIVATE MARKET IS BACKING YOU ALL THE WAY?
JEFF THOMAS, THANK YOU SO MUCH. COMING UP, WE ARE JOINED BY
AMRITA AHUJA, CFO AND COO OF BLOCK, A COMPANY NAMED ON THE
RECENT ONES TO WATCHLIST, TO DISCUSS THE COMPANY'S PLAN FOR
UPCOMING LAUNCHES AND FURTHERING THEIR STRATEGIES FOR
GROWTH. LOOKING FORWARD TO THE CONVERSATION.
FROM SAN FRANCISCO AND NEW YORK

CITY, THIS IS BLOOMBERG TECHNOLOGY. ♪ >> HAPPENED YET, BUT HOPEFULLY IT WILL. >> WHETHER IT IS A RECAP OR MINORITY SALE, THAT IS WHAT WE ARE SEEING. THAT MIGHT NOT BE AN OUTRIGHT SALE, BUT IT WILL OCCUR. >> NOW THAT CUTS ARE ON THE RISE, THE PIPELINE IS PICKING UP MEANINGFULLY, MEANING YOU SHOULD START TO SEE MORE DEALS AND VELOCITY. EVEN IF THE BASE RATE COMES DOWN, IT WILL OFFER AN ATTRACTIVE RATE. CAROLINE: TOP NAMES TALKING ABOUT RATE STABILIZING. YIELDS PERHAPS COMING DOWN AHEAD OF THE AUCTION WE ARE GETTING LATER TODAY WHERE WE ARE OFF BY FOUR BASIS POINTS. SOME OF THAT MOVEMENT INTO THE BOND MARKET HAS STEMMED SOME OF

THE ANXIETY AROUND THE TECHNOLOGY PLAY IN THE EQUITY MARKETS.
DOWN 1/10 OF 1%, EVEN THOUGH WE HAVE BIG DRAWDOWNS AND SINGLE
NAMES, BUT WE ARE STABLE ON THE NASDAQ 100, THAT'S THE BIGGER
BENCHMARK. BITCOIN IS OFF BY 1%. CRYPTO, MANAGING TO PUSH HIGHER
AS WE SEE RISK ON SENTIMENT FROM THE BOND MARKET IN THE
CRYPTO MARKET. LET'S LOOK AT THE INDIVIDUAL
NAMES MAY BE DRAGGING DOWN THE OVERALL NASDAQ 100.
MICRON, UNDERPERFORMING AS YOU SEE. THE CEO COMES OUT AND SAYS
REVENUE IS FORECAST ONLY 90%, NOT GOOD ENOUGH.
THE MARKET WANTED TO SEE MORE. THIS IS OF COURSE ALL ABOUT THE
HIGH-BANDWIDTH MEMORY COMING FROM MICRON. 3% WITH DEPOSITORY RECEIPTS IN
THE U.S., THE OWNER OF TEMU.

MIGHT HAVE MORE COMPETITION COMING FROM AMAZON DRIVING IT ON. UP MORE THAN 5%, Z SCALE, CYBERSECURITY, THAT'S A REAL FOCUS TODAY. WITH THAT BECAUSE BERNSTEIN IS LIKING THE PALO ALTO NETWORKS OR IS IT AN ISSUE OVER THE U.K. AND HACKING? FOR NOW, BACK TO INVESTMENT. ED: YEAH, ANOTHER THING COMING OUT OF BLOOMBERG INVEST, THE UNVEILING OF THE ONES TO WATCHLIST. THE FINTECH COMPANY KNOWN FOR FINANCIAL SERVICES LIKE SQUARE AND CASH APP MADE A LIST SHINING THE LIGHT ON THE BLOCK CFO COO AND I'M DELIGHTED TO SAY THAT THEY JOIN ME NOW. I'VE MET MANY JOINT CFO COO'S. IT'S AN INTERESTING DUAL ROW -- ROLE WHERE YOU CONFLICT WITH YOURSELF AND HAVE TO MANAGE THE

NUMBERS AND RUN THE OPERATIONS
OF THE BUSINESS. WHAT'S THAT LIKE? >> FIRST OF ALL, THANK YOU FOR
HAVING ME HERE, AND I APPRECIATE IT. THAT'S RIGHT, I HAVE TO HOLD
BOTH THINGS, ASPIRATION AND INDISCIPLINE.
THE MARKET WE ARE GOING AFTER IS VAST. $200 BILLION OVER
FINANCIAL SERVICE COMMERCE. DISCIPLINE BECAUSE WE WANT TO
DO THAT FOCUS ON UNIT ECONOMICS AND HOLDING OURSELVES
ACCOUNTABLE TO RETURNS ON THE OUTCOME.
AS A COO AND CFO, I'M VERY FOCUSED ON BOTH AND CONTINUE TO
DEMONSTRATE OUR PROGRESS TOWARDS OUR INVESTMENT
FRAMEWORK AND FINANCIAL TARGETS IN 2026. CAROLINE:
THE STOCK BASH ED: THE STOCK IS DOWN -- ED:
THE STOCK IS DOWN 18% THIS YEAR, AND THERE ARE STORIES TYING IT
CLOSELY TO BITCOIN.

WE CAN TALK ABOUT STRATEGY, BUT
WHERE WOULD YOU SAY THE COMPANY IS AT COMPARED TO WHERE YOU'RE
TRYING TO GET IT TO? AMRITA: WE HAVE A TREMENDOUS
OPPORTUNITY FOR GROWTH. Q1. WE WERE GROWING 22%
YEAR-OVER-YEAR. TO BE AT THAT SCALE AND
CONTINUE TO DEMONSTRATE BOTH, WE ARE CLEARLY SERVING VERY
IMPORTANT NEEDS ON THE BEHALF OF OUR CUSTOMERS, WHETHER IT IS
SMALL BUSINESSES OR THE 54 MILLION MONTHLY ACTIVES ON CASH
APP. WE HAVE SIGNIFICANT OPPORTUNITY
FOR DOING MORE OF THAT. WE ARE EARLY. AND WE USE
TECHNOLOGY AND AI TO UNDERPIN OUR PRODUCTS. AND WE ARE FOCUSED
ON IMPROVING THE VELOCITY TO SHIP MORE PRODUCTS TO OUR
CUSTOMERS. CAROLINE: IN MANY WAYS, REGULATION HAS TO
PLAY CATCH UP.

IT IS NOT MISSED ON MANY THAT
THEY ARE TRYING TO BRING FINANCIAL TECHNOLOGY REGULATION
INTO THE 21ST CENTURY. THAT'S WHAT THE LAST CONGRESSIONAL
VOTE WAS ON. I'M INTERESTED IN WHETHER YOU
THINK REGULATION IS THERE IN THE RIGHT PLACE FOR YOU.
LOTS OF REGULATIONS WITH PEOPLE TRYING TO GET THEIR HEAD AROUND
THE FUTURE OF CRYPTO. AMRITA: THAT'S RIGHT, AND WE WELCOME
REGULATION AS IT APPROPRIATELY SERVES CONSUMERS.
WE WORK WITH REGULATORS AND WORK TO BUILD A HEALTHY
ECOSYSTEM FOR OUR CUSTOMERS. IT IS OUR TOP PRIORITY TO
MAINTAIN A SAFE, SECURE PLATFORM THAT LOADS TRUST OVER
TIME. ULTIMATELY, THAT IS GOOD FOR
BLOCK. CAROLINE: TRUST OVER TIME, THERE HAVE
BEEN CONCERNS AROUND MONEY

LAUNDERING WORRIES, TRADING
WITHIN SANCTIONED COUNTRIES, WHICH I KNOW IS BEING
INVESTIGATED AT THE MOMENT. HOW ARE YOU WORKING WITH
REGULATORS TO MAKE SURE YOU ARE BRINGING THE LEVEL OF
TRANSPARENCY YOU HAVE INTERNALLY TO THOSE EXTERNALLY. AMRITA: WE TAKE THE ALLEGATION
SERIOUSLY AND ARE WORKING ON THE AREAS THAT BUILD A HEALTHY,
SAFE, AND RESPONSIBLE PLATFORM FOR OUR CUSTOMERS, INCLUDING
COMPLIANCE TEAMS, PRODUCT TEAMS, AND RISK MANAGEMENT
TEAMS. WE ARE ALWAYS OPEN TO FEEDBACK AND WANT TO CREATE
APPROPRIATE DIALOGUE WITH REGULATORS, POLICYMAKERS, AND
THE COMPANY ALONG WITH CUSTOMERS. ED: WHEN I MOVED TO SAN FRANCISCO
IN 2018, JACK DORSEY WAS MORE CLOSELY ASSOCIATED WITH WHAT
WAS THEN CALLED TWITTER.

A LOT HAS CHANGED OVER THE LAST
SIX YEARS. HE IS NOW AT BLOCK. WHAT IS THAT LIKE, WORKING WITH
HIM, YOUR RELATIONSHIP WITH HIM DAY TO DAY IN THE COMPANY?
WHEN I LOOK AT THE BITCOIN NEWS THAT CAME OUT RECENTLY, HOW
MUCH OF THAT IS HIS FOCUS? AMRITA:
HE'S A VISIONARY WHO RUNS NOT ONLY OUR COMPANY BUT ALSO
SQUARE. AND I WOULD SAY THE VAST MAJORITY OF HIS FOCUS AND OUR
FOCUS IS ON THE TWO MATURE SYSTEMS. AND WITH BITCOIN, WE
HAVE A STAKE IN THE FUTURE WHERE MONEY CAN MOVE AT THE
SPEED OF THE INTERNET. AND WE THINK THAT BITCOIN IS THE
LIKELIEST CONTENDER TO ENABLE DIVISION, BECAUSE IT IS
RESILIENT AND HAS BEEN BATTLE TESTED, IS SECURE AND
TRANSPARENT. WHAT WE SEE WORKING AROUND THE
WORLD IS THAT THE MOST

UNDERSERVED CUSTOMERS ARE THE
ONES THAT HAVE TO PAY THE HIGHEST RATES TO ACCESS THEIR
MONEY OR MOVE MONEY AROUND. WE THINK THAT BITCOIN HAS THE
OPPORTUNITY TO CHANGE THAT. OF COURSE, WE WILL BE
DISCIPLINED AND PRUDENT IN HOW WE INVEST IN THAT FUTURE.
LESS THAN 3% GOES TOWARDS BITCOIN EXPERIMENTS AND
INITIATIVES, BUT IT COULD BE POTENTIALLY TRANSFORMATIVE.
CAROLINE: I'M REALLY INTERESTED IN THE
INVESTMENT SIDE OF IT. YES, YOU ARE BUILDING PRODUCTS,
AND I CAN UNDERSTAND WHY YOU WANT TO EXPERIMENT FOR THE GOOD
OF THE CONSUMER, BUT WHY THE BALANCE SHEET?
WHY HAVE 10% GROSS PROFIT GOING INTO BITCOIN PRODUCTS EACH
MONTH AND KEEPING IT AS AN INVESTMENT ON THE BALANCE SHEET?
AMRITA:

10% OF BITCOIN, LESS THAN 5% OF OVERALL GROSS. A MODEST SUM THAT HELPS US TO LEARN, HELPS US UNDERSTAND WHAT IT MEANS TO CUSTODY BITCOIN, WHAT IT MEANS FOR THE TREASURY TEAMS TO BE OUT THERE BUYING BITCOIN WITH RESPECT TO INSURANCE. THERE ARE A LOT OF DIFFERENT THINGS THAT WE GET TO LEARN FROM THIS MODEST AND SMALL INVESTMENT IN THE SCOPE OF A MUCH WATER BALANCE SHEET. CAROLINE: GREAT TO HAVE SOME TIME WITH YOU. CONGRATULATIONS FOR BEING ON THE LIST. MEANWHILE, COMING UP WE WILL BE JOINED BY THE FOUNDER OF RAY VENTURES TO TALK ABOUT EARLY-STAGE INVESTMENTS IN AI AND HOW THEY ARE PAYING OFF FOR HER. THIS IS BLOOMBERG TECHNOLOGY.

RAMASWAMY, WHO JOINS US AFTER THE PRESIDENTIAL DEBATE. DO NOT MISS THAT CONVERSATION. THIS IS BLOOMBERG. ♪ CAROLINE: TIME NOW FOR OUR VC ROUNDUP. PETER THIEL'S FOUNDERS FUND IS LOOKING TO RAISE 1.5 BILLION DOLLARS, ONE OF THE LARGEST FUNDING ROUNDS OF THE YEAR, FOCUSED ON AI. PLUS, SEQUOIA CAPITAL IS MAKING AN INVESTMENT IN A FRENCH STARTUP BUILDING CUSTOMIZED AI BOTS FOR COMPANIES, MAKING SOFTWARE PLUGGING INTO COMPANIES LIKE GOOGLE AND PHILANTHROPIC FOR THINGS LIKE SLACK. AND IT'S NOT, OF COURSE, THE ONLY AI INVESTMENT TODAY. CLAY IS INVESTED IN SALES AND MARKETING BUSINESSES, RAISING $46 MILLION FROM INVESTORS LIKE SEQUOIA AND OTHERS, BRINGING THE COMPANY VALUATION TO $500

MILLION. ED:
LET'S KEEP TALKING ABOUT INVESTING IN AI AND BRING IN
SHRUTI GANDHI, THE FOUNDER OF ARRAY VENTURES.
THE FOCUS IS GETTING INTO AI NAMES AT THE EARLIEST STAGES.
THIS IS A WELL-TIMED AND IMPORTANT CONVERSATION.
TWO DAYS AGO YOU HAD THE EDGE FOUNDER AND CEO ON THE SHOW
WITH A DEBUT ROUND OF $120 MILLION.
AFTER HE WENT ON THE SHOW LOADS OF PEOPLE REACHED OUT AND SAID,
GREAT INTERVIEW, BUT THEY DON'T HAVE ANYTHING TO SHOW YET.
THEY ARE TALKING ABOUT TAKING ON THE NVIDIA'S OF THE WORLD,
AND IT'S A HARDWARE PLAY. IN THE FIRST INSTANCE, GETTING
IN AT THE EARLY STAGES, HOW DO YOU KNOW THAT THAT IS A VIABLE
BUSINESS, TECHNOLOGY, OR PLAN?

SHRUTI:
FIRST OF ALL, THANK YOU FOR HAVING ME ON THE SHOW.
IT'S NOT THAT HARD. GOOD QUESTION.
TODAY, THERE ARE WAYS TO INVEST IN AREAS TO INVEST IN BECAUSE THEY
ARE GLAMOROUS. AI HAS KIND OF DISTRIBUTED
CURRENTLY IN TWO WAYS. ONE IS MODEL COMPANIES AND THE
OTHER IS APPLICATIONS. ED: CAROLINE JUST OUTLINED IT IN
THE DAYS NEWS STORIES. SHRUTI: EXACTLY.
A WHOLE BUNCH OF INVESTORS GOING AFTER THOSE COMPANIES.
IT'S A RACE TO THE BOTTOM IN SOME WAYS. BUT PEOPLE FEEL LIKE THEY ARE
MISSING OUT ON GETTING INTO THE BEST AI REVOLUTION BECAUSE IT
HAS BEEN COMPARED TO THE EARLY INTERNET.
THEN THERE ARE THE APPLICATION LAYERS AND PAIN POINTS THAT
COMPANIES NEED TO SOLVE IN

TERMS OF PROTOCOL AND HR.
IT COULD BE THE CIO. SEE SELF EFFICIENCY.
AND YOU CAN SOLVE THAT WITHOUT RAISING MUCH MONEY.
YOU CAN SOLVE FOR THAT EARLY DAYS BY TESTING THE WATERS,
CALLING YOUR FRIENDS, FIGURING OUT WHAT YOU NEED TO SOLVE IN
HOW I CAN GET STARTED WITH JUST A FEW MILLION DOLLARS.
ONCE YOU DO THAT, YOU CAN RAISE A BIG AMOUNT OF CAPITAL AFTER
THAT. I DON'T THINK THAT EVERYONE
NEEDS TO RAISE THAT MUCH IF YOU ARE NOT A MODEL COMPANY.
CAROLINE: OK, SO IF YOU ARE GOING TO
ALLOCATE SOME OF YOUR MONEY -- MONEY INTO A COMPANY THAT WAS
THE FIRST ROUND TO GET THINGS ROLLING FOR CONSUMER NEED, HOW
DO YOU DECIDE THE BEST PLACE? THANK YOU -- SHRUTI:
THAT'S RIGHT. THANK YOU SO MUCH FOR ASKING.
IT'S WHAT WE JUST SAID, WE

TALKED ABOUT THIS IN THE COLLABORATING WORKFORCE. IF A FOUNDER IS AT A BIG COMPANY AGITATED, THEY ARE REALLY UPSET TRYING TO SOLVE BIG PROBLEMS IN AI, DATA, CLOUD, SECURITY. WHAT THEY CANNOT DO IS GET PERMISSION AND BUDGET FROM CIOS TO GO SOLVE FOR THAT WITHIN THE COMPANY BECAUSE IT IS NOT MISSION-CRITICAL AT THE CURRENT COMPANY. THEN THEY GO OUT AND TALK TO THEIR FRIENDS AND SAY THAT IF I BUILD THIS, WILL YOU BUY? RUNS A YES. SO, THREE OF THE FIVE FRIENDS SAY THAT IN THAT IS WHEN OUR FOUNDERS GO AND BUILD, GET THE CONVICTION TO BUILD THOSE COMPANIES. FRANKLY, YOU DON'T NEED THAT MUCH MONEY EARLY DAYS TO PUT A TEAM TOGETHER, ESPECIALLY IF YOU HAVE A CORE TEAM OF ENGINEERS TO PUT THE TOGETHER.

FOR THE PROBLEM, YOU HAVE BEEN THERE BEFORE. WHAT WE INVEST IN IS PRECEDE COMPANIES. THAT'S FIRST CHECK EVER INTO A COMPANY AND YOU DO NOT NEED THAT MUCH MONEY FOR IT TO VALIDATE YOUR IDEAS. CAROLINE: SHRUTI, HOW LONG DO YOU THEN STAY WITH THE COMPANY? AS YOU SAY, THERE IS A SUDDEN RUSH AND HUSTLE WITH HEAVY VALUATION, AND DO YOU TRY TO WRITE IT OUT FOR THE M&A AND THE IPO? SHRUTI: THAT'S A GREAT QUESTION. WE DON'T THINK OF OURSELVES AS A ONE-STAGE INVESTOR. WE USUALLY RIDE IT OUT. WE HAVE BEEN FORTUNATE IN THE LAST YEARS TO GET IT EVENT AT VARIOUS STAGES OF THE COMPANIES. SO SOMETIMES AS A PRUDENT INVESTOR, WE WILL SELL 10 SHARES.

OR LESS THAN 1/10 OF OUR SHARES
IN A COMPANY. WE JUST DID THAT AS WE RETURNED
OUR FIRST FUND. WE WILL CONSIDER THAT AS A CASE
BY SAY -- CASE-BY-CASE BASIS. OUR GOAL IS TO NEVER GET OUT AT
THE SECOND OR THIRD ROUND OF INVESTMENT. ED: ONE OF OUR AUDIENCE MEMBERS
WROTE IN TO SAY THEY AGREED WITH YOU THAT AI CAN MEAN
DIFFERENT THINGS, BUT THEY ADDED MORE WIREFRAMES FOR
PRODUCTS AND THEN FOR OTHER INVESTORS. THEY ARE -- IT'S AN
INTERESTING POINT. WHERE I WANT TO GO TO END IS --
YOU HAVE TO FIND THESE PEOPLE. IF IT IS PRECEDED, WHERE ARE
THEY COMING UP WITH THEIR IDEAS? SHRUTI: IT'S A GREAT QUESTION.
OFTEN PEOPLE THINK THAT YOU JUST CALL UP THE FRIENDS, BUT
THESE OPERATORS AT THESE

AMAZING COMPANIES. PEOPLE WHO
HAVE WORKED THERE FOR TWO YEARS, FOUR YEARS. ED: MIGHT
HAVE BEEN LAID OFF? SHRUTI: MAYBE, MAYBE NOT. DOESN'T
MATTER. WHAT MATTERS IS THEY HAVE THIS
BEFORE. THEY KNOW HOW TO BUILD THIS. WHEN THEY TAKE IT ON AS A START-
UP, THEY WILL DO IT WITH VERY LITTLE MONEY.
THAT IS WHERE WE INVEST. DIFFERENT OPERATORS COMING OUT
OF DIFFERENT COMPANIES. CAROLINE:
SHRUTI, SO GREAT TO HAVE YOU ON. FOUNDER OF ARRAY VENTURES.
COMING UP, THE RECENT CYBER ATTACK AGAINST A LAB SERVICE
PROVIDER IN THE U.K., SO NO MESS, CAUSING A MAJOR BREACH IN
THE NHS RECORDS. THIS IS BLOOMBERG. CAROLINE:
FIFA IS LOOKING TO RAISE AS

MUCH IS $2 BILLION FOR THE EXPANSION OF FIFA. PLUS, THE FREE STREAMING SERVICE TO OFFER LIVE COVERAGE OF MATCHES. FOR MORE, LET'S BRING IN FELIX. IT'S A GOOD TIME TO BE SELLING SOME SORT OF SPORT RIGHT NOW? FELIX: IT IS. EXPENSIVE IF YOU ARE A FIRE, BUT ALL OF THESE STREAMING SERVICES HAVE LAUNCHED THESE AD-SUPPORTED TEARS. IN THE BIGGEST MOVEMENT RIGHT NOW IN HOME ENTERTAINMENT IS THE FACT THAT AS THEY TRY TO BUILD UP THESE AD-SUPPORTED PARTS OF THEIR PLATFORMS, THEY ARE GOING TO NEED MORE LIVE SPORTS, RIGHT? ANY TIME ANY BIT OF SPORTS RIGHTS COMES UP FOR SALE, YOU JUST SEE THE PRICES GOING UP AND UP. THE NBA ABOUT TO SIGN THESE HUGE DEALS, GETTING A BIG BUMP.

FIFA, THEY HAVE SOME SECONDARY PACKAGES YOU CAN TAKE OUT INTO THE MARKET AND SELL THE RIGHTS FOR OR DISTRIBUTE THEM YOURSELVES. YEAH, IT'S A GREAT TIME TO BE SELLING SPORTS RIGHTS. ED: TELL ME ABOUT FIFA PLUS. I HAVE SLING, PARAMOUNT, I WATCH IT ON PEACOCK. DO I NEED TO GET FIFA PLUS AS WELL? FELIX: DEPENDS ON YOUR LEVEL OF ADDICTION. CAROLINE: YES. [LAUGHTER] FELIX: YOU HAVE TO GO PRETTY FAR DOWN. SOCCER, THE WORLD CUP. THE BROADCAST RIGHTS FOR 2026 HAVE BEEN SOLD. YOU CAN WATCH IT IN THE U.S., ON FOX. BUT I THINK THAT ALL OF THESE LEAGUES, WHEN YOU GET DOWN TO THE SMALLEST SLICES POSSIBLE, WHETHER IT IS SOCCER, TENNIS, BASKETBALL, FOOTBALL, IN SOME WAYS I THINK THE NFL HAS REALLY

BEEN THE MODEL. YOU TRY TO CHOP IT UP INTO AS
POSSIBLE, BECAUSE EVERY SLICE YOU CAN FIND A BUYER FOR.
OR YOU CAN PUT IT ON YOUR OWN STREAMING SERVICE AND GET
ADVERTISERS OR SELL SUBSCRIBERS. CAROLINE: INDEED. ED:
FELIX, THANK YOU. BIG STORY OUT OF THE UNITED
KINGDOM. LONDON HOSPITALS FACING MAJOR
CONSEQUENCES FOLLOWING A CYBERATTACK AGAINST LAB SERVICE
PROVIDER SYNOVIS ON JUNE 3, RESULTING IN THE RELEASE OF
SENSITIVE MEDICAL RECORDS AT NHS, PATIENT DATA.
RYAN JOINS US WITH MORE. SIGNIFICANT, SEEING SOME OF THE
U.K. PAPERS COVERING THIS, RYAN. EXPLAIN WHAT HAPPENED. RYAN:
ON JUNE THE THIRD, A RUSSIAN LINKED CRIMINAL HACKING GANG
BROKE INTO SYNOVIS' COMPUTER

SYSTEM WITH MALICIOUS SOFTWARE, ESSENTIALLY LOCKED DOWN. SYNOVIS IS AN IMPORTANT COMPANY. IT PROVIDES BLOOD TESTING, BIOPSY TESTING FOR A WHOLE RANGE OF HOSPITALS IN SOUTHEAST LONDON IN PARTICULAR. IT MEANT THAT THESE HOSPITALS COULD NOT TEST BLOOD FOR THEIR PATIENTS. NOW INTO THE FOURTH WEEK OF THE INCIDENT, THE HOSPITALS HAVE BEEN UNABLE TO TEST BLOOD AT NORMAL CAPACITY, WHICH HAS CAUSED MASSIVE PROBLEMS FOR THEM. CAROLINE: THEN THERE IS A HORROR TO REALIZE THAT YOUR OWN PERSONAL INFORMATION WHILE PREGNANT, YOUR OWN NEWBORN, YOUR DIAGNOSIS OF SCHIZOPHRENIA, MIGHT BECOME A MORE PUBLIC FORM OF INFORMATION. HEARTS GO OUT TO THOSE WHO MIGHT THE AFFECTED, AND MANY ARE, SO I'M WONDERING ABOUT THE

RAMIFICATIONS.
IT SEEMS AS THOUGH THE NHS KNEW THAT THERE WERE VULNERABILITIES.
RYAN: THE GAG BEHIND THE ATTACK ON FRIDAY LAST WEEK, THEY PUBLISHED A HUGE AMOUNT OF DATA THAT THEY STOLE FROM THE COMPUTERS BEFORE THEY WERE WALKED DOWN, AND THEY DUMPED IT ALL ONLINE.
I HAVE HAD A LOOK THROUGH SOME OF IT, AND IT'S A HUGE VOLUME OF INFORMATION. I HAVE SEEN FOR MYSELF LIKE 40,000 DETAILED MEDICAL RECORDS ON PATIENTS FROM ACROSS THE U.K., WHICH WAS THE STRIKING THING. PRIMARILY IT AFFECTED THE LONDON HOSPITALS, BUT WE FOUND THAT SYNOVIS HAS BEEN DOING THESE TESTS FOR HOSPITALS ACROSS THE U.K. AND IRELAND, AND THE DATA BREACH IS IMPACTING ALL OF IRELAND NOW, WHICH HADN'T BEEN

UNDERSTOOD AT THE OUTSET.
THERE ARE PEOPLE ACROSS THE COUNTRY WHOSE
PERSONAL CONFIDENTIAL MEDICAL INFORMATION WAS POTENTIALLY PUT
OUT THERE AS A RESULT OF WHAT HAPPENED. CAROLINE:
NHS TALKING ABOUT THE AMOUNT THEY HAVE INVESTED, BUT THUS
FAR, THEY NEED TO KEEP AN EYE ON THIRD PARTIES.
RYAN GALLAGHER, THANK YOU FOR BRINGING THAT TO US.
THAT DOES IT FOR THIS EDITION. ED:
INCREDIBLE REPORTING FROM OUR COLLEAGUES AROUND THE COUNTRY
AND THE WORLD. YOU CAN RECAP ALL OF THAT ON
THE PODCAST, YOU KNOW WHERE TO FIND IT ON BLOOMBERG PLATFORMS,
SPOTIFY, AND I HEART.

Micron Falls on Earnings and SpaceX Nabs a $210B Valuation | Bloomberg Technology

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

Micron's stock is down 6% after posting high revenue growth but failing to meet estimates, mainly due to challenges in its legacy businesses.

The company is optimistic about the future, expecting significant growth in sales of high-bandwidth memory as investment in AI infrastructure increases.

Meanwhile, NVIDIA is experiencing volatility, with its AGM reiterating the company's role in the industrial revolution but not providing any new information.

Both companies are facing different challenges in the current market.

Hedge Funds Selling Tech Stocks After NVIDIA's Rise

Hedge funds are aggressively selling tech stocks, especially chip stocks, following the surge of NVIDIA, despite record inflows into technology stocks from other investors.

The selling trend of hedge funds may indicate a shift to defensive areas of the market, such as utility stocks, showing a more risk-averse approach.

The concern over a possible bubble behavior in the tech sector is rising, as demonstrated by the incredible gains and high valuations of companies like SpaceX and Perplexity AI.

SpaceX Surpasses ByteDance as the Most Valuable Company

SpaceX's valuation has more than doubled to $210 billion, surpassing ByteDance as the most valuable company.

The intense interest in SpaceX is driven by the mechanics of the tender offer, where insiders sell shares to private investors, signaling the company's approval of the valuation.

Meanwhile, Amazon plans to launch a storefront for low-priced apparel and home goods, while a California police raid recovers allegedly stolen merchandise bound for online marketplaces.

Cargo theft, involving sophisticated methods, is on the rise in the U.

, causing significant economic damage for companies.

Webtoon, a South Korea-based company, sold 15 million shares at $18 to $21 each, reaching a market value of $2.

The CFO, David Lee, stated that the company plans to use the cash to enhance tools for global creators and delight more consumers worldwide.

, there is a growing trend of international companies, including those from China, seeking better valuation and deeper capital markets in the U.

Rate stabilization is causing a pickup in the deal pipeline, offering an attractive rate even as the base rate comes down.

The bond market's movement is alleviating anxiety in the equity markets, with stable performance in the Nasdaq 100.

The CFO and COO of a fintech company highlight their focus on discipline and growth, while welcoming regulations to build a secure platform for customers.

Block's Approach to Compliance, Bitcoin, and AI Investments

Block is prioritizing transparency and working with regulators to ensure a safe platform for customers.

The company's main focus is on mature systems, with a small percentage of investment in Bitcoin for its potential to transform the movement of money.

Block Ventures is actively involved in early-stage AI investments, focusing on viable business and technology plans.

Investing in AI: Opportunities and Strategies

Investing in AI is currently focused on model companies and applications, with a race to the bottom for the best AI revolution.

Founders can start AI companies with a small amount of money by testing the waters and validating their ideas, especially for solving consumer needs.

Investors in AI companies typically stay with the business for the long term and aim to exit at later stages, avoiding early sell-offs.

FIFA's $2 Billion Expansion and the Impact on Sports Streaming

FIFA is investing $2 billion in expansion and planning to offer live match coverage through a streaming service.

The current trend of launching ad-supported tiers in streaming services is driving up the prices of sports rights, making it a great time to sell them.

In the UK, London hospitals are facing major consequences following a cyberattack on lab service provider Synovis, resulting in the release of sensitive medical records and impacting healthcare operations.