>> 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 NEW YORK IN SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. BENCHMARKS IN BIG WEEKS FOR MARKETS. INVESTORS AWAIT ECONOMIC DATA AND A FED POWELL SPEECH OUT OF JACKSON HOLE. ED: THE LATEST ON WHY WAL-MART’S $3.6 BILLION SALE HAS PUT E-COMMERCE COMPANIES UNDER PRESSURE. CAROLINE: AN ALL-ELECTRIC S.U.V. AND TAKING A $1.9 BILLION CHARGE TO SWITCH STRATEGIES AGAIN. ALL TO COME. FIRST CHECK IN ON THESE MARKETS. ECONOMIC DATA WE ARE CURRENTLY DIEJESTING THE REVISIONS THE

JOBS DATA. YES, THEY ARE MORE THAN 800,000. NOT ENOUGH TO REALLY CHANGE THE DYNAMIC MOVE OF THE MARKETS. STILL HOLDING ON TO WANES OF A .1%. COME OFF THE HIGHS STILL MANAGING TO CLING ON TO AN UPCYCLE. INTERESTINGLY A REBOUNDING CHINESE TECH NAMES AS WELL. I SHINE A LIGHT ON THE NASDAQ GOLDEN DRAGON. YESTERDAY UNDER PRESSURE, TODAY STILL INDIVIDUAL NAMES WE’LL SHINE A LIGHT ON. JUST TALK US THROUGH WHAT YOU ARE WATCHING. ED: OVERNIGHT A LOT OF PRESSURE ON HONG KONG LISTED TECH SHARES. WHY? WAL-MART MADE $3.6 BILLION SELLING OUT OF ITS STAKE IN J.D..COM. JD CONFIRMING THROUGH THE HONG KONG EXCHANGE WAL-MART NO

LONGER HOLDS A STAKE. WE’LL HIT THAT STORY HARD THROUGHOUT THE HOUR WITH OUR REPORTERS WHO WERE ON IT. IT’S INTERESTING TO SEE FOR J.D..COM’S THE PRESSURE. NVIDIA IS TOP OF MIND. 27 A SHARE. NOT FAR OFF THE 35 A SHARE RECORD WE HIT IN JUNE. THERE IS A LOT OF ANTICIPATION AHEAD OF NEXT WEEK’S EARNINGS. AUGUST 28 AFTER MARKET AND WHETHER NVIDIA WILL GET BACK TO THAT RECORD LEVEL. IT’S LED THE MARKET IN THIS REBOUND WE HAVE SEEN SINCE AUGUST. THE GIK OF -- BEGINNING OF AUGUST. THERE IS A LOT OF HOPE WHERE THE HOPE TRANSLATES INTO CONFIDENCE, WHO KNOWS. CAROLINE: ONE OF THE KEY STORIES WRITTEN ON THE TERMINAL. JOINING US TO PASS-THROUGH WHAT THE MARKET SENTIMENT IS AROUND

NVIDIA. WHETHER IT CAN MAKE THIS MACRO LEVEL EVENT COME AUGUST 28. YOU TALKED TO SOME KEY BULLS. >> IT DOES SEEM LIKE THERE IS GROWING CONFIDENCE THAT THE SPENDING ON A.I., WHICH HAS BEEN THE CENTRAL BULL THESIS BEHIND NVIDIA AND A MAJOR DRIVER BEHIND OVERALL TECH GAINS, PEOPLE ARE CONFIDENT THAT IT WILL REMAIN CONSISTENT. THERE WERE CONCERNS EARLIER THIS MONTH ABOUT HOW MUCH R.O.I. ARE THESE COMPANIES SEEING OUT OF THEIR A.I. I.N.V.E.S.T.M.E.N.T.S SO FAR. THE GENERAL THESIS SEEMS TO BE EVEN IF THE R.O.I. IS A LITTLE DELAYED AND DOESN’T SHOW NUMBER GROWTH AND IMPROVED EFFICIENCY FOR MAYBE A FEW MORE QUARTERS OR LONGER, THERE WILL STILL BE A TON OF DEMAND FOR

THESE A.I. CHIPS AND HARDWARE AND INFRASTRUCTURE. AND THAT TAILWIND WILL CONTINUE SUPPORTING NVIDIA IN TERMS OF ITS GROWTH. ED: WHAT’S HAPPENED IN THE LAST COUPLE WEEKS, TALK ME THROUGH THE RALLY, THE REBOUND IN NVIDIA SHARES. RYAN: WE DID SEE SOME PRETTY BROAD-BASED WEAKNESS EARLIER THIS MONTH. SOME OF THAT WAS RELATED TO THE YEN. JUST OTHER FACTORS LIKE THAT. SOME CONCERNS ABOUT VALUATION. WE DID SEE A DRAMATIC REBOUND. WE ALSO HAD THE MEGACAP RESULTS WE SAW OUT LAST MONTH. ALL THE MAJOR NVIDIA CUSTOMERS LIKE MICROSOFT, AMAZON, ALPHABET, META, THEY REITERATED THEY ARE GOING TO CONTINUE SPENDING ON THIS. I THINK THOSE TWO THINGS PEOPLE

LOOKING FOR A DIP TO BUY. THAT SPENDING TAILWIND. THE CONFLUENCE OF THOSE TWO THINGS SPURRED INVESTORS TO BUY THE DIP ON NVIDIA. YOU HAVE SEEN THE STOCK JUMP UP ABOUT 30% OFF THE LOW EARLIER THIS MONTH. CAROLINE: IT’S INTERESTING CHIP MAKERS HAVE BEEN WHAT HAVE DICTATED WHERE THE NASDAQ 100 IS GONE. CALL IT THE POOR NAN’S NVIDIA AND PEOPLE HAVE BEEN BUYING INTO THAT. TEXAS INSTRUMENTS, HERE’S A COMPANY THAT’S CURTAILING SOME OF ITS CAPITAL EXPENDITURE. WHAT DO YOU MIKE OF T.I. TODAY? RYAN: THEY ARE MAYBE PULLING BACK IN THEIR CAP X. THERE IS OPTIMISM THAT WILL LEAD TO SOME IMPROVED FREE CASH FLOW FOR THEM. A DIFFERENT KIND OF PLAYER. THEY ARE NOT AS ACTIVE IN A.I.

CERTAINLY NOT TO THE EXTENT THE MAJOR PLAYERS ARE. PEOPLE ARE LOOKING AT THEM AS A WAY TO IMPROVE THEIR FREE CASH FLOW. THAT’S WHY THERE IS A LIFT IN THAT STOCK. IMPROVING IN MARKETS AND CASH FLOW RELATED TO THE CAP X COMMENTS. CAROLINE: TALKING TO SO MANY MONEY MANAGERS ON BOTH SIDES ANTI-LATEST ON TEXAS INSTRUMENT. DIG MORE INTO SOME OF THE INDIVIDUAL NAMES. THE BROADER MARKET WITH KEVIN WALKUSH. COVERING TECH, A.I., CHIPS, THE PERSON WE NEED TO SPEAK TO. WHEN MANY ARE WONDERING WHAT THE RETURN ON INVESTMENT OF A.I. -- ON INVESTMENT IS. FOR YOU IT’S INFRASTRUCTURE. PICKS AND SHOVELS? KEVIN: WHEN WE THINK ABOUT IT, WITH JENSEN WE ARE FOCUSED ON

QUALITY INVESTING, LONG TERM. WE THINK THE A.I. ATTENTION IS MORE IN THE SHORT TERM IN TERMS OF CAP X SPEND AND DEMAND FOR NVIDIA CHIPS. DIRECTLY, THE CHIP INDUSTRY IS CYCLICAL. WE ARE LOOKING FOR THOSE PLATFORM PLAYERS THAT CAN CONTINUE TO MONETIZE CONSISTENTLY OVER THE LONG TERM. WHAT WE THINK ABOUT TODAY, THE INTENTIONS ON NVIDIA. WE ARE LOOKING MORE TOWARDS THE LONG TERM. THAT WOULD BE THE MICROSOFTS, ESTABLISHING THEMSELVES WITH THAT MASSIVE CAP X SPEND. WE ARE ALSO SEEING IT ON ALPHABET SIDE, WHERE AGAIN INVESTMENT’S BUILDING THAT BEACHHEAD FOR LONG-TERM MONETIZATION. WE LIKE ACCENTURE FROM AN A.I. STORY HAS BEEN MISUNDERSTOOD BY THE MARKET IN OUR OPINION.

WHEN WE LOOK AT ACCENTURE, WE THINK THE MARKET, WHICH WE CONTINUE TO THINK OF AS A LONG-TERM INVESTMENT, WE THINK SHORT-TERM FOCUSED. FOCUSED ON A LITTLE BIT OF SLOWDOWN ON I.T. SPEND UNDULY HAMMERED THE STOCK, IN OUR OPINION. WHEN WE LOOK AT ACCENTURE, THEY COMMITTED TO SPENDING $3 BILLION FOR A.I. THEY ARE MARKET LEADERS IN TERMS OF CLOUD. WHEN THEY DID A LARGE INVESTMENT LIKE THAT AS WELL. WE WOULD EXPECT THEM AS A PICKS AND SHOVEL TYPE COMPANY TO BENEFIT IN THE LONG TERM FROM A.I. AS AN IMPLEMENTER. THEY DON’T HAVE TO PICK THE WINNER. THEY JUST HAVE TO CONTINUE VERY GOOD AT IMPLEMENTING THE TECH. ED: I DIDN’T EXPECT US TO JUMP STRAIGHT ON ACCENTURE. I’LL BE HONEST. ECONOMIC DATA,

POWELL SPEAKS, AND EVERYONE HAS ANXIETY ABOUT NVIDIA ON AUGUST 28. WHICH IS THE MOST IMPORTANT FOR YOU? KEVIN: FOR US, WHEN WE LOOK AT NVIDIA IT’S INTERESTING. WE DON’T OWN NVIDIA. WE THINK ABOUT THE MARKET, IT’S BEEN VERY BINARY. -A HANDFUL OF A.I. DRIVEN STOCKS. A BROADER VALUATION ACROSS THE MARKET AS A WHOLE. WE CERTAINLY ACKNOWLEDGE NVIDIA. WE’LL UNDERSTAND HOW IT COULD IMPACT OUR PORTFOLIO. WHAT WE ARE IN ON THE SHORT TERM IS CONTINUATION OF THAT SORT OF TREND AND MIGRATION FROM A LONG-TERM PERSPECTIVE TOWARDS A.I. BUT ALSO BROADER TECH. AND SEEING HOW HEALTHY IT IS IN TERMS OF GROWING. THAT’S ABOUT IT. IT’S SORT OF CONTEXTUALLY LOOKING AT THE SHORT-TERM WITH

AN EYE TOWARDS THE LONG-TERM. CAROLINE: I’M REALLY INTERESTED IN THAT. YOU ARE NOT IN NVIDIA BUT YOU ARE IN ALPHABET, MICROSOFT, THE LIKES OF ACCENTURE, TEXAS INSTRUMENTS. LESS ON THE A.I. SIDE. THE OTHERS ARE A.I. NAMES. ARE WHY ARE YOU NOT IN NVIDIA? KEVIN: WHAT’S INTERESTING ABOUT OUR STRATEGY, VERY INHERENT IN TERMS OF US AND OUR QUEST FOR LONG TERM QUALITY GROWTH BUSINESSES, WE LOOK FOR COMPANIES THAT HAVE HIGH RETURNS ON EXAP AND CONSISTENTLY SO. WE ARE LOOKING FOR COMPANIES RETURN IN EQUITY -- 15% RETURN IN EQUITY. IT’S ORIGINAL AVERAGE. THE 10 YEARS IS SUPPOSED TO DENOTE AN ALL SORT OF MARKET TYPE ENVIRONMENT OF HIGH CAPITAL RETURNS.

NVIDIA had not up until this recent fiscal year qualified in that case. It does qualify now. We are researching it. Our sense we look at the valuation would be from a fundamental standpoint. We'll probably like it. I think from a valuation standpoint for us, too rich to enter the position. Ed: Right now the NVIDIA side of equation on A.I., the CapEx investment on A.I. infrastructure there. If you go back to your example I find interesting. Where people struggle is to see the top-line growth coming out the other side. Those that are working on A.I. services and products. Do you see it? Kevin: It's early days. What's interesting you look at the growth in terms of A.I.

PROJECTS AND SPEND FOR ACCENTURE HAS BEEN GROWING DRAMATICALLY. BUT RELATIVE TO TOTAL REVENUE, IT’S NOT AS LARGE YET. EARLY OPTIONS OF NEW OR NEWER NEW TECHNOLOGIES YOU SEE SMALL BASE, LARGE GROWTH. RIGHT NOW, RELATIVE TO THE OVERALL PICTURE, IT LOOKS SMALL. I THINK THE MARKET, FROM OUR PERSPECTIVE, WHEN WE LOOK AT IT, THE MARKET’S SO FOCUSED ON SHORT-TERM GAINS THAT LOOKING AT THE TREES. WE ARE TRYING TO LOOK AT THE FOREST. WE LIKE THE TRENDS, THE DIRECTION. HAVING BEEN INVESTED IN THIS COMPANY FOR A LONG TIME AND SEEING THIS PLAY OUT BEFORE IN OTHER TECH TRENDS. WE ARE EXCITED ABOUT THE OPPORTUNITIES FOR ACCENTURE. CAROLINE: KEVIN WUL CURB, THANK YOU.

PORTFOLIO MANAGER. WE SHIFT GEARS BECAUSE ITALIAN DIVERS HAVE NOW BEEN JOINED BY AN UNDERWATER ROBOT AS THE SEARCH AND RESCUE EFFORTS RESUME FOR A THIRD DAY AROUND THE SUNKEN YACHT OFF SICILY OF BRITISH TECH ENTREPRENEUR. AND OTHERS ARE FEARED TO HAVE DIED. THE ROBOT IS CAPABLE OF OPERATING ON A SEA BED ON A DEPARTMENT OF 300 METERS FOR SIX TO SEVEN HOURS. AS AUTHORITIES CONTINUE TO INVESTIGATE HOW THE LUXURY YACHT SANK IN THE EARLY HOURS OF MONDAY MORNING. WE’LL KEEP YOU UP-TO-DATE. ED: WAL-MART ENDS ITS PARTNERSHIP WITH J.D..COM IN CHINA. ALMOST REFINING ITS STRATEGY IN THAT COUNTRY, NEXT.

THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: PRESENT TEND TO J.D.. KRFT OM AND THE PRESSURE. WAL-MART SOLD OUT RAISING ABOUT $3.6 BILLION BY SELLING ITS STAKE IN THE CHINESE E-COMMERCE FIRM. THE MOVE WINDS DOWN AN EIGHT-YEAR PARTNERSHIP WITH DIMINISHING RETURNS. AMY HAS MORE ON THE DETAILS. A LOT OF PRESSURE ON THE SHARES OF JD.COM FOR OBVIOUS REASONS. IT’S SENDING SHOCK WAVES ACROSS THE ENTIRE INDUSTRY GROUP. PEOPLE ARE WORRIED ABOUT WHAT THIS SIGNALS FOR JD.COM AND THE GROWTH. >> ESPECIALLY AT THE TIME WHEN CHINESE ECONOMY IS SLOWING AND ALSO IT’S BEEN REFLECTED IN E-COMMERCE. AND ALSO IT REALLY SHOWS THAT U.S.

COMPANIES CAN GO THEIR OWN WAY. AMY: IT’S NOT LIKE EIGHT YEARS AGO WHEN THE PARTNERSHIP STARTED. YOU NEED A LOCAL PARTNERSHIP TO GAIN POPULARITY AMONG CHINESE CONSUMERS. NOW SAM’S CLUB HAS GOT REALLY GOOD RECOGNITION AMONG CHINESE CUSTOMERS AS WELL. ED: GOOD POINT. IN YOUR REPORTING, YOU GIVE THE BACK STORY OF WAL-MART AND CHINA, WHICH IS ABOUT EIGHT YEARS OF PARTNERSHIP WITH J.D.COM. THEIR BUSINESS IS STRONG. SOURCES SPOKE TO US ABOUT THAT. WHAT DID YOU LEARN? AMY: ESSENTIALLY, THE PARTNERSHIP WAS GREAT. IT STARTED OFF AS TRYING TO GET CHINESE CUSTOMERS TO RECOGNIZE THE BRANDS AND GAIN SHARES THAT IT MIGHT NOT HAVE BEEN ABLE TO WITHOUT A CHINESE PARTNER. NOW THAT KIND OF GROWTH HAS

SLOWED. Together with the Chinese economy is slowing as well. And Sam’s Club is the only one of the top five e-commerce platforms in China that recorded growth that shows it can go alone. It probably should go alone. Essentially, the $3.6 billion it got can actually put to better use. Ed: That will help. Thank you. Another one we are watching, Ford recalibrating its EV strategy again. This time, the automaker is canceling plans for a fully electric SUV, a move that cost the company nearly $2 billion. Bloomberg’s Keith Norton is here with more. It feels just like yesterday that you and I were reporting that Ford was going to focus

ITS E.V. UNIT, SET IT AWAY FROM EVERYTHING ELSE. NOW IT’S A CHANGE. I THINK YOU SPOKE TO THE C.E.O. WHAT’S THE RATIONALE HERE? KEITH: THEY ARE TRYING TO FIND PROFITABILITY FOR THAT E.V. UNIT THAT THEY BROKE OFF TWO YEARS AGO WHEN WE REPORTED ON THAT. THIS YEAR THEY ARE EXPECTING THAT UNIT KNOWN AS MODEL 8 TO LOSE AS MUCH AS $5.5 BILLION. THIS THREE-ROW S.U.V. THEY CANCELED THEY SAY THEY COULDN’T FIND A WAY TO MAKE IT PROFITABLE. IT REQUIRES A VERY LARGE BATTERY, WHICH IS HIGH COST. AND THEY CAN’T PUT IT OUT THERE WITH ALL THE COMPETITION IN THE MARKET REQUIRING PRICE CUTS ON E.V.’S. THEY CANCELED IT AND LOOKING AT PERHAPS DOING AN EXTENDED RANGE ELECTRIC VEHICLE. CAROLINE:

WE LOVED THE CROSSOVER. HE WAS SO EXCITED TO SHOW EVERYONE. THEY COULDN’T GET IT TO BE PROFITABLE. IT FEELS AS THOUGH ONCE AGAIN HYBRID IS WHERE IT’S AT. KEITH: A LOT OF GROWTH IN HYB HYBRID. AND THEY ARE ENTHUSED BY THE EXTENDED RANGE ELECTRIC VEHICLE. YOU HAVE A GAS ENGINE THAT SOLE PURPOSE IS TO RECHARGE THE BATTERY. IT DOESN’T DRIVE THE WHEELS. ARE YOU AN ELECTRIC MODE MOST OF THE TIME. YOU SAW THOSE IN CHINA. HE WANTS TO GET THEM IN THE FORD LINEUP. WE MAY SEE IT AS THAT THREE ROW S.U.V. ED: THAT’S SOMETHING THAT’S POPULAR IN CHINA. A NUMBER OF CHINESE DOMESTIC MANUFACTURERS HAVE THOUGHT ABOUT THAT. WHAT I DON’T UNDERSTAND IS

WHETHER THIS WILL EVER BE A PLACE WHERE FORD JUST DOES E.V.’S. I THOUGHT THAT WAS THE TRANSITION PLAN. PROFIT FROM PICKUPS FUNDS THE TRANSITION LONG TERM TO E.V.’S. NOW IT SEEMS LIKE THAT’S NOT AS CLEAR-CUT. KEITH: IT IS NOT. AND THE NEW PLAN REALLY IS -- LEANS ON HYBRIDS MORE WHICH FORD HAS BEEN IN THE BUSINESS OF DOING FOR A LONG TIME. AND THE E.V. SPACE THEY ARE LOOKING TO DO SMALLER E.V.’S. AND REALLY LOOKING AT ADVANCES IN BATTERY TECHNOLOGY. THEY HAVE L.F.P. BATTERIES OUT OF A PLANT IN MICHIGAN THAT WILL POWER A NEW MEDIUM-SIZED PICKUP TRUCK, E.V., IN 2027. JIM TOLD ME THAT THE TOTAL COST OF OWNERSHIP OF THAT TRUCK WITH THOSE LOWER COST BATTERIES WILL

ACTUALLY BE CHEAPER THAN TRADITIONAL VEHICLES. CAROLINE: HE CALLED THIS A TREMENDOUS PIVOT. IS THIS AN EMBARRASSMENT? IS THIS SOMETHING THAT JIM’S WORRIED ABOUT INVESTORS’ REACTIONS LONG-TERM? KEITH: SO FAR INVESTORS HAVE REACTED POSITIVELY. THE STOCK IS UP. THERE ARE A COUPLE WAYS TO LOOK AT IT. IT’S EMBARRASSING THAT EVERYONE GOT SO CAUGHT UP IN THE HYPE THAT THEY STARTED BUILDING PLANTS AND BUILDING BATTERY FACTORIES EVERYWHERE AND NOW HAVE TO SCALE BACK. FORD AT LEAST HAS ACKNOWLEDGED THE NEED TO DO THAT. THEY HAVE BEEN OUT FRONT SAYING, NO, WE NEED TO CHANGE. THEY HAVE BEEN CHIPPING AWAY AT IT. NOW THEY HAVE DONE THIS WHOLE PLAN THAT HE SAYS HE THINKS WILL BE THE FINAL MOVE.

WE’LL SEE. CAROLINE: A BIG COST TO HAVE TO SUCK UP. THANK YOU FOR JOINING US. ABNORMAL SECURITY. ARTIFICIAL INTELLIGENCE IN TERMS OF FORMING THE CYBERSECURITY LANDSCAPE. WE’LL SPEAK WITH THE S.E.O. NEXT IN OUR A.I. IN ACTION. BLOOMBERG TECHNOLOGY. ED: TIME FOR A.I. IN ACTION. WE ARE LOOKING AT THE RISING RISKS OF A.I. IN CYBERSECURITY AND HOW ONE COMPANY AIMS TO FIGHT FIRE WITH FIRE. IN COMBATING THE THREATS. JOINING US IS EVAN REISER ABNORMAL SECURITY C.E.O. RECENTLY HIT A $5.1 BILLION VALUATION IN THE LATEST SERIES, DEFUNDRAISE. THE STORY IS CLEAR. THAT THE TOOLS AVAILABLE TO YOUR INDUSTRY IN DEFENSE ARE ALSO AVAILABLE TO THE THREAT

ACTORS, RIGHT? THAT A.I. HAS GIVEN THEM SOMETHING TO WORK WITH. THAT’S KIND OF WHAT YOU ARE TRYING TO COMBAT. EVAN: THAT’S RIGHT. A.I. IS AN EXTREMELY POWERFUL TECHNOLOGY. LIKE ALL TECHNOLOGY, IT’S A TOOL, WHICH CAN BE USED FOR GOOD OR EVIL. CRIMINALS ARE FASTER AT ADOPTING TECHNOLOGY AND USING A.I. TECHNOLOGIES TO DO MORE BAD THINGS. CAROLINE: YOU GOT 2,400-PLUS CUSTOMERS. HOW ARE THEY USING YOU? YOU ARE TRYING TO PREDICT ME, THE HUMAN, AND ACT IN A STRANGE WAY, RIGHT? EVAN: IN AN ABNORMAL WAY. THAT’S CORRECT. IF YOU LOOK A DECADE AGO, CRIMINALS WERE GREAT ATTACKS INFRASTRUCTURE. NOW THEY MOVED ON TO THE VULNERABLE TARGET, PEOPLE.

WE HAVE SEEN FRAUD PHISHING, THE BIGGEST FORMS OF CYBER ATTACKS. UNDERSTANDING BEHAVIOR BETTER THAN HUMANS SO WE CAN PROTECT THEM. ED: WHAT I DON’T UNDERSTAND IS YOU GOT A REALLY IMPRESSIVE RUN RATE, MILLION. WHY IS THERE SUCH A VACUUM FOR YOU TO JUMP INTO? IT SEEMS LIKE WE HAVE BEEN TALKING ABOUT THE A.I. STORY FOR A FEW YEARS. NOW EVERYONE IS OK I NEED TO THINK ABOUT THE THREAT BEFORE ME. WHY NOT DO IT EARLIER? EVAN: TWO REASONS. ONE IS WITH THE RISE OF NEW TECHNOLOGIES. IT’S EASY AND ACCESSIBLE FOR CRIMINALS TO SUPERCHARGE THEIR ATTACKS. WE HAVE SEEN THIS RISE OF SOCIAL ENGINEERING AND PHISHING THE LAST COUPLE OF YEARS.

NOW ANY PETTY CRIMINAL CAN USE CHATGPT. SEND EMAILS IN PERFECT ENGLISH, GRAMMAR, WITH CONTEXT ABOUT THEIR VICTIMS. AND THESE NEW TECHNOLOGIES ALLOW CRIMINALS TO PERSONALIZE THAT SCALE. THAT IS VERY HARD TO DEFEND AGAINST. THE REASON IT’S HARD IS THAT CONVENTIONAL CYBERSECURITY FOLKS STUDYING ALL THE KNOWN BAD ATTACKS, BLOCKING THE EXISTING ATTACKS. AND THIS REQUIRES A NEW TECHNOLOGY NOT FOCUSED ON KNOWN BAD BUT KNOWN GOOD. HUMAN BEHAVIOR AND LOOKING FOR THOSE ANOMALIES AND ABNORMALITIES. CAROLINE: EXPLAIN HOW YOU ARE WORKING. WHAT ARE YOU APPLYING AND WHY RAISING MORE MONEY HELP YOU BEEF THAT UP? EVAN: AT THE CORE WE ARE AN ARTIFICIAL INTELLIGENCE COMPANY THAT BUILDS CYBERSECURITY.

PRODUCTS. THE CORE TECHNOLOGY IS FOCUSED ON UNDERSTANDING HUMAN BEHAVIOR BY INTEGRATING ALL ENTERPRISE TECHNOLOGY SYSTEMS. WE UNDERSTAND THE BASE LINE ACTIVITY. WHO TALKS TO WHO AND WHAT TYPES OF THINGS. WHAT BUSINESS PROCESSES. MAP OUT THE SUPPLY CHAIN. WE TAKE THAT BEHAVIORAL BASE LINE AND LOOK FOR ANOMALIES. IT’S VERY EFFECTIVE AT STOPPING THESE PERSONALIZED SOCIAL ENGINEERING PHISHING ATTACKS THAT HAVE NEVER BEEN SEEN. IT’S A NEW PARADIGM FOR HOW TO DO CYBERSECURITY. THE FINAL REASON IS THAT CONVENTIONAL CYBERSECURITY IS VERY RELIANT ON A HUMAN POWERED PARADIGM. HUMAN ANALYSTS ANALYZING LOTS OF DATA. MACHINE LEARNING A.I. IS FAR SUPERIOR AND EFFECTIVE. SO CAN MAKE SUPER HUMAN JUDGMENTS FASTER THAN

CONVENTIONAL SECURITY OPERATIONS. NOT ONLY IS IT A BIGGER NEED IN THE MARKET, BUT NEW TOOLS ALLOW ORGANIZATIONS LIKE US TO BECOME -- MORE EFFECTIVE AT STOPPING CYBER ATTACKS. CAROLINE: TO BECOME EVER MORE EFFECTIVE DO YOU NEED MORE PEOPLE, MORE TALENT? OR MORE COMPUTE? MORE MONEY FOR THAT? EVAN: IT’S A BIT OF EVERYTHING. WE JUST RAISED THIS THREE WAYS WE ARE PLANNING ON GROWING THE BUSINESS. ONE IS JUST GROWING INTO NEW MARKETS. EXPANDING INTERNATIONALLY IN ASIA AND EUROPE. THE SECOND IS WE NEED TO GROW OUR TEAM. WE WANT TO GET THE WORLD’S BEST LEADERS IN TECHNOLOGY AND BEYOND. AND THIRD IS MAKING MORE INVESTMENTS IN THAT CORE PLATFORM. USING THAT TO BUILD, EXPAND OUR

PRODUCT BASE BEYOND EMAIL SECURITY. TO PROTECT OTHER SUR VAST AREAS ACROSS THE ORGANIZATION. CAROLINE: ABNORMAL SECURITY C.E.O. ED. ED: TIME FOR TALKING TECH. FIRST UP UBER’S HIRED FORMER TESLA EXEC TO OVERSEE A SHIFT TO E.V.’S. THEY WILL START SEPTEMBER 16 AS THE GLOBAL HEAD OF SUSTAINABILITY. AS UBER TRANSITIONS TO A ZERO EMISSIONS PLATFORM BY 2040. A SENIOR LEADER OF RIVIAN LEAVES FOR STELLANTIS. ACCORDING TO A MESSAGE SENT TO EMPLOYEES, THE VICE PRESIDENT WILL LEAVE THE COMPANY TO BECOME HEAD OF MANUFACTURING AT STELLANTIS EFFECTIVE SEPTEMBER 8. HIS DEPARTURE, MORE THAN HALF A DOZEN HIGH-LEVEL LEADERS THAT LEFT THE COMPANY. SHARES SURGED 82% SINCE THE I.P.O. RAPID RISE.

MARKET CAP TO MORE THAN $7 BILLION. WE’LL BE RIGHT BACK. 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. CAROLINE: QUICK CHECK ON THE SENTIMENT OF THE MARKETS. WE ARE COMING OFF WHAT HAD BEEN A SLIGHTLY STRONGER RALLY PRIOR TO THE JOBS REVISION DATA WE GOT. MORE THAN 800,000 JOBS FEWER THAN WE HAD PREVIOUSLY BEEN SEEING. YES, WE KNEW REVISIONS WERE TO COME, BUT THIS IS BEING SEEN AS A SOFT DATA POINT. THE FEDERAL RESERVE WON’T CUT INTO THIS. LOOKING AT CRYPTO, SOME INTERESTING STORIES ALSO AROUND

A CROWDED TRADE IN DERIVATIVES. BASICALLY SHOWING THAT MAYBE COULD GET A SHORT SQUEEZE IF WE GOT MORE VOLATILITY. MOVE ON TO SOME OF THE INDIVIDUAL MOVERS FROM THE STOCKS. MICROCHIP TECHNOLOGY, INDIVIDUAL MOVER HERE ON THE BACK OF A CYBER ATTACK. WHICH BASICALLY SUPPLIES THE U.S. DEFENSE INDUSTRY SAYING THEY WERE HIT, SERVERS WERE HIT BY CYBER ATTACK. SAYING THIS WILL BE TEMPORARY. UP 2%. THIS WAS UP MORE THAN 40% YESTERDAY. REMEMBER THE ROVER, HAD BEEN SENDING TO THE NOON, THIS SPACE-BASED COMPANY IS CURRENTLY DOWN JUST AS WE HAVE SEEN A BIT OF PROFIT TAKING. DID. GLOBAL UP 2.5%. THEY COME OUT AND FINALLY TURN

A PROFIT. IT’S MORE 96 MILLION BUT BETTER. WE HAVE MORE ON CHINA. ED: AS WE SAID TECH STOCKS SLUMPED AFTER WAL-MART SOLD ITS STAKE IN JD.COM. KEY TECH PLAYERS IN CHINA HAVE REPORTED LOSSES. IT WAS INTERESTING WHEN THE BLOOMBERG REPORTING HERE ON THE WAL-MART J.D. STAKE BECAUSE RIPS WERE FELT QUICKLY. FOR CHINA TECH. GOOD MORNING. WHAT DID YOU SEE? >> WE HAVE DATA SLUMPING. THIS ISN’T A SURPRISE. THIS IS AN EIGHT-YEAR PARTNERSHIP. WHEN WAL-MART SOLD ITS $3.6 BILLION STEAK HE THAT’S 11% DISCOUNT. IT SEEMS TO BE PAYING DEAMERICANNING REPORTS. WE HAVE DATA.COM -- DIMINISHING RETURNS.

WE HAVE DATA.COM, GROCERIES TO HIGHER END SHOPPERS, MOSTLY SPHEE MALE, AND CITY GROUPS. THIS WAS A SURPRISE. EVEN IF THEY WERE KNEW, IT ENDS IN 2024, THE TERMS FOR JD.COM MAY NOT BE AS FAVORABLE. YOU SEE THE DROP MAINLY BECAUSE OF THE UNEXPECTED OF IT ALL. TO YOUR POINT, IT’S REALLY BEEN A TOUGH YEAR. A FEW YEARS FOR CHINA TECH. MOSTLY ALL OF THEM. I DON’T WANT TO SAY ALL, MOST, ARE STRUGGLING. CAROLINE: PARTICULARLY WHEN THOSE ARE EXPOSED TO CONSUMPTION IN CHINA. ONE REBOUNDS TODAY. YESTERDAY SUNK HARD ON THE BACK OF ITS EARNINGS. >> AS A BROADER ECONOMY, CHINA IS STILL STRUGGLING. WE HAVE JOB PROSPECTS FOR THE YOUTH STILL UNCERTAIN. ISABELLE:

WE HAVE THE ECONOMY NOT DOING WELL. THIS ALL AFFECTS CONSUMER CONSUMPTION. WE HAVE A SLEW OF EARNINGS. I MUST NOTE THAT LAST WEEK ALLI BA BA, LONG SEEN AS A PARAMETER FOR CHINESE HEALTH, IT SURPRISED INVESTORS WHEN IT SAID ITS MAIN BUSINESS COMMERCE SHRUNK. IT SHOWS THE DIVERGENCE BETWEEN WHAT WE SEE IN THE US US AND CHINA. WAL-MART IN A STATEMENT SAID THEY WANT TO FOCUS ON THEIR BUSINESS AND REALLOCATE TO OTHER FUNDS LIKELY THE SAM’S CLUB FRANCHISE. DOING WELL IN CHINA. WAL-MART DID CALL THE PARTNERSHIP WITH JD.COM PRECIOUS. THEY’LL CONTINUE TO COOPERATE. ED: YOU KNOW ME. I LOVE A CHART. I THINK THAT CHART ON YOUR SCREEN IS ONE OF THE STORIES.

AT LEAST FOR THIS SECOND QUARTER OF THIS CALENDAR YEAR. LOOK AT THE NASDAQ AND LOOK AT HANG SANG TECH. GO DEEPER INTO THE TECHNOLOGY SHARES AND. SO STRUGGLES OF CHINA OR AT LEAST HONG KONG LISTED TECH. CAROLINE: WE HAVE THE CHINESE GOLDEN DRAGON INDEX DOWN 14% IN THE PAST 12 MONTHS. COMPARE THAT TO THE NASDAQ AND S&P. WHETHER IT’S 17%, 20%. IT’S A STORY HOW U.S. TECHNOLOGIES COMPANIES ARE OUTPERFORMING THE REST OF THE WORLD. I THINK IT’S NOT EVEN A CHINA STORY WHERE CHINA IS STUCK IN THE DOLDRUMS. IT’S HOW THIS IS A U.S. STORY AT THE END OF THE DAY. EVEN EUROPE CAN’T COMPETE. EVEN ASIA. IT’S U.S. THE BIGGEST COMPANIES IN THE

WORLD ARE IN THE U.S. WHETHER THAT RALLY WILL CONTINUE, WE KNOW THE A.I. HALO IS FADING NOR A WHILE -- FOR A WHILE. YOU CANNOT DENY THAT U.S. IS REALLY THE BRIGHT SPOT IN THE REST OF THE WORLD. IN TECH COMPANIES. CAROLINE: ISABELLE LEE, GREAT. THANK YOU. WE’LL LOOK AT CHINA IN A DIFFERENT PERSPECTIVE. WE ARE LOOKING AT THE RELEASE OF CHINA’S BIGGEST P.C. GAME TOO DATE. THE GAME YOU MIGHT REMEMBER HAS BECOME A BIT OF SENSATION. MOVING TWO MILLION PLAYERS TRYING TOUT THE GAME IN THE FIRST DAY ALONE. STRONG FIRST DAY PERFORMANCE. IT COULD SHORE UP EXPECTATIONS FOR CHINA’S $40 BILLION-PLUS GAMING ARENA. AFTER YEARS OF REGULATORY SCREUTNY. -- SCRUTINY.

YOU REALLY UNDERSTAND AND DEDIVE ON THE CHINA ELEMENT OF GAMING. WHAT IS THE CHINA CONSUMER SHOWING YOU WHEN IT COMES TO DESIRE TO GET INTO GAMING. >> THE CHINESE CONSUMER HAS ALWAYS BEEN AVID FOR GAMING. THEY FIND THAT GAMING IS AN INEXPENSIVE FORM OF DIGITAL ENTERTAINMENT. VERY SOCIAL. LISA: AND THE HIGHER THE QUALITY OF THE GAMES, THE MORE THESE HIGH DEMANDING GAMERS WILL THROW THEMSELVES INTO THEM AND SPEND A LOT OF MONEY. BOOK MYTH WUKONG IS A PERFECT EXAMPLE OF THAT. PERFECT EXAMPLE OF A LOT OF THINGS. LIKE CHINESE GAME DEVELOPMENT PROWESS. HOW CHINESE GAME DEVELOPERS ARE REALLY WORLD CLASS. AND HOW RELATIVELY UNKNOWN COMPANY LIKE GAME SCIENCE, THE DEVELOPER OF BLACK MYTH WUKONG,

BACKED BY 10 CENT, HERRO ENTERTAINMENT COULD HAVE DEVELOPED THIS GAME FOR YEARS ON END AND HAVE IT COME OUT AT THE TOP OF EVERY CHART. ED: EVERY CHART. THE OTHER DATA SET I WAS TRACKING WAS SONY PLAYSTATION 5 SALES ON ALIBABA FOR THE SEVEN DAYS THROUGH AUGUST 20. IT WAS TOP OF THE CONSUMER ELECTRONICS TREE. WHAT DOES THAT TELL US ABOUT THE CHINESE GAME PLAYER RIGHT NOW? THE CHINESE CONSUMER THAT LOVES VIDEO GAMES? LISA: IT TELLS US THEY ARE DISCERNING. THEY HAVE MONEY TO SPEND WHEN THEY WANT TO. IT TELLS US THEY WILL SPEND MONEY ON THINGS THAT ARE HIGH QUALITY. I THINK THAT FOR OTHER GAME DEVELOPERS WORLDWIDE, LOOKING TO TACKLE THIS MARKET, THERE IS

OPPORTUNITY THERE. RIGHT NOW, BLACK MYTH WUKONG HAS ONE OF THE COVETED GOVERNMENT-ISSUED ISBN LICENSES PERMITTING IT TO HAVE DOMESTIC CONTRIBUTION. ITS PRIMARY SOURCE OF DISTRIBUTION IN CHINA TODAY IS STEAM INTERNATIONAL. FOR STEAM INTERNATIONAL, THE ISBN IS NOT RELEVANT. THIS IS STILL A WAY FOR GAME COMPANIES TO DISTRIBUTE GAMES IN CHINA. CAROLINE: HOW, THEREFORE, IS A GOVERNMENT GOING TO ASSESS WHAT SEEMS TO BE A PHENOMENAL FIRST DAY? LISA: I THINK THE GOVERNMENT WILL ASSESS THIS AS A VICTORY FOR CHINESE-BASED DEVELOPER. AND ONE THAT IS GOING TO CERTAINLY BE A LEADER AMONG THE EXPORT PACK OF GAMES BEING EXPORTED FROM CHINA TO THE REST OF THE WORLD. THIS IS A SINGLE PLAYER P.C.

OFFLINE GAME. MEANING IT'S A PREMIUM GAME. YOU PAY FOR IT UP FRONT. THERE ARE NO IN-GAME PURCHASES. THIS IS REALLY AMAZING. MOST OF THE SUCCESS OF GAMES IN CHINA HAS BEEN FOR FREE TO PLAY OR WITHIN APP PURCHASES. AND MOST OF THE HITS HAVE BEEN ON MOBILE. THIS IS A P.C.-BASED SINGLE PLAYER GAME. JUST TO GIVE YOU SOME POINT OF REFERENCE, BY THE CHINA NAMES GAMES AND STREAMING TRACKER, ONE OF THE TOOLS WE USE TO MEASURE THE MARKET, A PROPRIETARY TOOL, WE TRACK STREAMS. THERE WERE 29 MILLION VIEWERS BY NIKO'S ALGORITHMIC APPROXIMATE MAITION OF VIEWERS OUT OF THIS GAME OUT OF 130 MILLION VIEWERS OF ALL STREAMED GAMES ON THOSE PLATFORMS. ON AUGUST 20. THAT WAS REALLY REMARKABLE.

ALMOST 25% OF ALL GAMERS WHO ARE WATCHING STREAMS OF GAMES ARE WATCHING THIS GAME. ED: LISA DEVELOPED BY GAME SCIENCE, I HAVE SO MUCH MARKETING FOR THIS. PARTICULARLY THROUGH THE P.S. APP. DO YOU THINK JUST TO EXTEND THE QUESTION, THIS IS GOING TO BE A NATIONAL CHAMPION FOR CHINA? THEY’LL SAY, WHAT A SUCCESS YOU HAVE HERE ON OUR HANDS. LISA: SURE. I THINK THIS IS ONE OF THE BIG SUCCESSES NOT ONLY IN CHINA BUT P.C. ONLINE GAMES GLOBALLY AND HAPPENS TO BE FROM CHINA AND A RELATIVELY UNKNOWN STUDIO CALLED GAME SCIENCE. SIMILARLY, ONE RELEASED A COUPLE OF YEARS BACK, IT BLEW DOORS PAST EVERYONE’S EXPECTATIONS AND WAS A NATIONAL BIG HIT THAT WENT GLOBAL. AND LOTS OF PEOPLE LOVE THE GAME.

THEY ALSO CAME OUT WITH THAT GAME AS THEIR FIRST BIG HIT. NOW WE SEE GAME SCIENCE DOING THE SAME THING. WE HAVE SEEN LOTS OF 10 CENT GAMES DO THIS. AND SPEAKING OF NEDDY’S. THEIR LANG HIT OF FANTASY WEST WARD JOURNEY, IT’S A CULTURAL HISTORY BASED GAME ABOUT JOURNEY TO THE WEST. LEGEND. MONKEY KING. THAT’S THE SAME THEME THAT WE SEE HERE IN BLACK MYTH WUKONG. THIS THEME HAS BEEN VERY POPULAR AMONG CHINESE GAMERS FOREOF. NOW WE SEE THAT AGAIN IT DOESN’T GET TIRED. THAT THE GAMERS DON’T GET TIRED OF IT. THIS IS SOMETHING THAT THEY LOVE TO PLAY. ED: IF I CAN FIND JUST A COUPLE OF HOURS THIS WEEK I WILL PLAY. LISA, C.E.O. OF NIKO PARTNERS. THANKS SO MUCH.

COMING UP, BARACK OBAMA SHOWED UP AT THE D.N.C. LAST NIGHT. WE’LL BE LIVE FROM CHICAGO. BACK ON THE STATIONS, NEXT. THIS IS BLOOMBERG TECHNOLOGY. AS WELL AS APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG. ED: BARACK AND MICHELLE OBAMA MADE THEIR APPEARANCE ON THE SECOND NIGHT OF THE DEMOCRATIC NATIONAL CONVENTION BLASTING REPUBLICAN NOMINEE DONALD TRUMP WHILE PAINTING VICE PRESIDENT KAMALA HARRIS AS THE HEIR OF THEIR HISTORIC LEGACY. I BRING IN KATIE FOR MORE. NO MATTER WHICH SOCIAL MEDIA PLATFORM YOU LOOKED ON, THE CLIPS SHARED, A LOT OF PEOPLE HAD COMMENTS. IS THERE A SUMMARY WHAT WAS

SAID ON STAGE? KATIE: WE HAVE TO KEEP IN MIND HERE THAT THE OBAMAS, BOTH, ARE SOME OF THE MOST POPULAR FIGURES IN MODERN DEMOCRATIC POLITICS. THEIR APPROVAL RATINGS AMONG THOSE IN THE DEMOCRATIC PARTY IS IS NORTH OF 90%. MICHELLE OBAMA IN PARTICULAR IS A CULTURAL FIGURE THAN SHE WAS A FORMER FIRST LADY GIVEN THE RESIDENCE OF HER BOOK THAT PUBLISHED ANTI-TOUR THAT CAME ALONG. SHE HAS AN ABILITY TO RESONATE WITH THE AMERICAN POPULACE. AS A HOMETOWN GIRL IN CHICAGO. HER SPEECH WAS VERY MUCH ONE SEEMED TARGETED GETTING PEOPLE TO TURN OUT TO VOTE. SHE AND HER HUSBAND, FORMER PRESIDENT BARACK OBAMA, RETURNED ABOUT THESE IDEAS OF COMPLACENCY.

SAYING THIS IS GOING TO BE A TOUGH FIGHT. MICHELLE CALLING ON VOTERS TO DO SOMETHING. BARACK OBAMA FOR HIS PART TALKED MORE ABOUT HIS RELATIONSHIP WITH JOE BIDEN. BIDEN GAVE HIS FAREWELL ADDRESS ON NIGHT ONE OF THE CONVENTION. BIDEN -- OBAMA HAD SHARP ATTACKS FOR DONALD TRUMP TALKING ABOUT WHAT HE DEUBD HIS WEIRD OBSESSION WITH CROWD SIZE. TALKING ABOUT HE’S BEEN WHINING FOR YEARS AND GETTING STEEL FOR AMERICAN -- STALE FOR AMERICAN VOTERS. THE OBAMAS HAD THIS SOCIAL MEDIA POWER WE HAVE SEEN. THEY REALLY WERE THE FIRST OF INTERNET CAMPAIGN BACK IN 2008. SO SOME OF THESE RESONATING MOMENTS ON SOCIAL MEDIA WE HAVE SEEN PLAYING OUT.

KEEP IN MIND AS WELL IN THAT CONVENTION HALL. THERE ARE HUNDREDS OF SOCIAL MEDIA INFLUENCERS. SOME HAVE GOTTEN SPEAKING SLOTS AT THIS CONVENTION. CAROLINE: KALEY LEIGHONS, WHAT WAS A BIG NIGHT FOR THE D.N.C. DISCUSS THE IMPACT OF THE ELECTION ON THE TECH LANDSCAPE, VENTURE CAPITAL IN PARTICULAR. MARLON NICHOLS IS WITH US. ONE OF THE SIGNATORIES. QUICKLY TO START US OFF WITH THE D.N.C. AND ENERGY. WHAT ARE YOU SEEING? ARE YOU HEARING ANYTHING FROM A POLICY PERSPECTIVE THAT SPEAKS TO YOUR INDUSTRY IN. MARLON: I THINK THERE IS STILL A LOT TO BE SAID AND DISCLOSED ON THE ACTUAL POLICY. BUT MY PERSPECTIVE IS KAMALA’S FROM THE BAY AREA.

SHE’S THE A.G. OF CALIFORNIA. SHE KNOWS TECH. SHE’S BEEN AN ADVOCATE AND SUPPORTER OF TECH FOR A LONG TIME. I DON’T EXPECT THAT TO CHANGE ANY TIME SOON. ED: A LOT HAS BEEN MADE OF THE IDEA THAT KAMALA HARRIS IS FROM THE BAY. WE ALSO HAD PEOPLE ON THE SHOW THAT SAY J.D. VANCE WAS A VENTURE CAPITALIST. HE HAS THE EXPERIENCE OF BACKING ENTREPRENEURS. THEREFORE MIGHT BE BETTER FOR A START-UP LEADER OR ENTREPRENEURIAL ENVIRONMENT. HOW WOULD YOU RESPOND TO THAT? MARLON: I’LL SAY THIS ELECTION TO ME IS -- IT’S ABOUT MORE THAN JUST WHAT’S GOING TO HAPPEN FOR TECH. I THINK TECH WILL BE OK. THIS ELECTION TO ME IS ABOUT HUMAN RIGHTS. AND FREEDOM.

AND UNIFYING THE COUNTRY. I FEEL LIKE KAMALA IS A BETTER CHOICE IN THAT RESPECT. I ALSO THINK SHE’S THE MOST QUALIFIED CANDIDATE RUNNING. I MENTIONED SHE’S AN A.G., PART OF THE SENATE. SHE’S BEEN VICE PRESIDENT. IN AN ADMINISTRATION THAT HAD TO DO A LOT OF TURNOVER FROM A LOT OF HARM DONE FROM THE ADMINISTRATION PRIOR. THAT’S WHY I WAS -- I’M SUPPORTIVE OF KAMALA AND WHY I WAS A SIGNER OF THE PETITION. CAROLINE: HUMAN RIGHTS ELEMENT SPEAKS TO THE WORK YOU HAVE BEEN DOING WITHIN MAC VENTURE CAPITAL. ARE YOU BACKING FOUNDERS FROM DIVERSE BACKGROUND. YOU ARE DOING THE WORK TO NOT ONLY BE A MAJORITY BLACK-LED TEAM, BUT ALSO PUT YOUR MONEY TO WORK. WHAT SORT OF OUTSIZED PERFORMANCE DO YOU GET FROM

THAT AS YOU SPEAK TO YOUR PUTTING YOUR MONEY AND VOTE BEHIND KAMALA, NOT BECAUSE OF WHAT SHE LOOKS LIKE AND IDENTIFIES, BUT THE EXPERIENCE SHE HAS. MARLON: FOR US, WE HAVE ALWAYS TRIED TO BUILD A FUND THAT WAS 100% AMERICRATIC. THAT’S WAIT THE WORLD SHOULD WORK. DESPITE YOUR SKIN SCHOLAR, IF YOU ARE THE MOST CAPABLE AND BUILDING THE THING THAT MATTERS THE MOST FOR THE MAJORITY OF THE WORLD, YOU SHOULD GET THE FUNDING, YOU SHOULD HAVE THE OPPORTUNITY TO BUILD THAT COMPANY. THAT’S THE PHILOSOPHY THAT WE HAVE EMPLOYED AT MAC FROM THE BEGINNING. IT SERVED US PRETTY WELL. ED: MARLON, I WANT TO ASK HOW THINGS ARE GOING AT THE FIRM. 2022, YOU HAD YOUR SELF-MORE FUND DOUBLE YOUR INAUGURAL FUND.

TWO YEARS TO INVEST. GO AND SEE WHAT’S OUT THERE. HOW’S THAT GONE? MARLON: I PUT OUR TRACK RECORD UP AGAINST ANY OTHER FUND. WE ARE INVESTING OUT OF OUR THIRD FUND NOW. ALL IN, WE ARE MANAGING JUST AROUND $600 MILLION. WHICH MAKES US THE LARGEST SEED STAGE FUND IN LOS ANGELES. ONE OF THE LARGEST IN THE COUNTRY. I THINK THINGS ARE GOING PRETTY WELL. CAROLINE: TALK A LITTLE BIT ABOUT BEING IN L.A. AND THEREFORE SOME OF THE AREAS YOU HAVE BEEN ALLOCATING. FIRST COMES TO MIND IS THE ENTERTAINMENT SPACE AND THE LIKEMENT I’M SURE YOU LOOK AT ARTIFICIAL INTELLIGENCE. WHAT ARE VALUATIONS LIKE WHEN YOU TAKE THOSE TWO SEPARATE AREAS AND INDUSTRY GROUPS?

MARLON: Fortunately, at the seed stage, valuations haven’t jumped or declined too much. It’s been pretty steady. The range is roughly 10 million post-money to about 25. It’s stayed pretty flat there. Even if it’s an A.I. company, we weren’t really too affected by the major jumps in valuation you are seeing at Series A and beyond. A.I. is a hot area for everyone right now. We are investing there. We have been investing in that area for over 10 years. I have over 10 years. The fund since our inception. Markets rise and fall. And we just try to be steady. ED: Marlon Nichols, managing general manager at Mac Venture Capital. Great to have you.

THANK YOU. COMING UP, SIRIUSXM SIGNS A MULTIYEAR DEAL FOR THE COOL HEAD DADDY PODCAST. INTERESTING CONVERSATION COMING UP. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: SIRIUSXM AFTER IT SIGNED A MULTIYEAR DEAL FOR ALEX COOPER CALL ME DADDY PODCAST AND A NETWORK OF SHOWS T WILL GIVE THE COMPANY THE EXCLUSIVE RIGHTS TO SELL ADS ON THE AUDIO AND VIDEO. VERSE VERSIONS OF THE SHOW. AND NOT OVERWHELM HER SHOW BUT OTHER CONTRIBUTORS TO THE UNKNOWN NETWORK. LIFOR SOME IN OUR AUDIENCE WHO IS ALEX COOPER. THIS IS A REALLY GWEN Z DEMOCRA -- JEN Z DEMOGRAPHIC. >> SHE’S HAD A HUGE SHOW, CALL HER DADDY, HAS BEEN AROUND FOR YEARS. SHE HAD AN EXCLUSIVE DEAL WITH

SPOTIFY THAT WENT ON FOR THE PAST FOUR YEARS. AND RECENTLY SHE TOOK SOME OF THE MONEY SHE MADE AND STARTED HER OWN NETWORK WITH A LOT OF TIKTOK, YOUTUBE STARS. YOUNG DEMOGRAPHIC. ED: WHAT I’M FASCINATED ABOUT IN THE WORLD OF PODCAST AND PODCASTERS, IF WE USE CALL HER DADDY AS EXAMPLES, WHO ARE THE POWERBROKERS THAT GET THE DEALS DONE. HOW DOES SOMETHING LIKE THIS COME TOGETHER? ASHLEY: GREAT QUESTION. ALEX COOPER’S AGENT IS ORRIN ROSENBAUM FROM U.T.A. HE’S DEFINITELY ONE OF THE POWERBROKERS IN PODCASTING. HE’S SIGNED DEALS WITH ASHLEY FLOWERS OF CRIME JUNKIE, AND SIRIUSXM. AND MANY OTHER PODCASTERS.

SO MANY OTHERS WHO WORK WITH U.T.A. ALL THE AGENCIES HAVE PODCAST AGENTS AS WELL. CAROLINE: WHAT’S WILD HERE’S A ONE YEAR PERFORMANCE DOWN 24%. YESTERDAY ADDED MORE THAN $800 MILLION IN MARKET CAPITALLATION THROUGH THIS ONE DEAL. SIRIUS HAS BEEN AGGRESSIVE AND GOT INTO SMARTLESS, ANOTHER 00 MILLION AMOUNT WRITTEN. IS THIS THE NEW PRICE TAG FOR A SUCCESSFUL PODCAST? ASHLEY: IT WAS THE WAY THE BUSINESS WAS OPERATING FOUR YEARS AGO WHEN SPOTIFY GOT INTO THE SPACE. RECENTLY WE HAVEN’T SEEN AS MANY OF THESE SPLASHY DEALS. SIRIUSXM IS THE ONE OUT THERE BEING AGGRESSIVE, PAYING THESE BIG BILLS AND FOCUSING ON THE STAR TALENT. THEY SEE AN OPPORTUNITY WHERE

HOWARD STERN’S CONTRACT IS COMING UP. THEY ARE LOSING SUBSCRIBERS. THEY NEED TO BRING IN A YOUNGER DEMOGRAPHIC. THE WAY THEY ARE ABLE TO DO THAT IS THROUGH THE YOUNGER PODCAST STARS. ED: THESE ARE HIGH PROFILE, QUICKLY, EXAMPLES OF LEAVING SPOTIFY. IS THAT A WORRY? ASHLEY: SOME OF THESE FOLKS HAVE LEFT SPOTIFY. THEY HAVE CHANGED ITS OPERATING MISSION. THEY WERE VERY, VERY AGGRESSIVE IN THE POD KATZ BASE. SINCE THEN, THEY HAVE NOW REALLY FOCUSED ON EFFICIENCY AND BEING PROFITABLE AND HAVING A BETTER MARGIN. SO WE HAVE SEEN THEIR BUSINESS DO VERY WELL AS THEY HAVE BACKED AWAY FROM SOME OF THESE HIGH PROFILE PODCAST DEALS. ED: BLOOMBERG, ASHLEY, TERRIFIC REPORTING. THANK YOU. CAROLINE:

BIG DEALS TO FINISH OFF THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: RECAP ON THE PODCAST. FIND IT ON THE BLOOMBERG TERMINAL. APPLE, SPOTIFY, AND I HEART. THAT DOES IT.

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