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tv   Bloomberg Technology  Bloomberg  August 22, 2022 5:00pm-6:00pm EDT

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announcer: from the heart of where innovation, money, and power collide in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i'm emily chang in san francisco. this is bloomberg technology. coming up in the next hour, elon
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musk subpoenas former twitter ceo jack dorsey. what could he say that could help must get out of the deal? we will discuss. time regulation in line for a big vote in congress, but it seems to be sidelined in the midst of a worsening economy and the war in ukraine. representative david chris lany, chair of the house antitrust subcode he joins us. digital medicine gets real. the maker of an fda approved videogame that treat adhd goes public via spac today. all of that in a moment, but first let's get a look at the markets. katie greifeld is with us here now. katie: not a great day if you are a stock bull today. as you can see, a down day on wall street. the s&p 500 and nasdaq both off more than 2%, but it was the semiconductors that bore the
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brunt of the selling pressure. index down 4% or so. bitcoin back down to around 21,000 dollars a coin. i remember when it was at 24 west week, seems like a long time ago as we count down to jackson hole. how hawkish will drone powell sound on friday when he speaks at 10 a.m. eastern? that is the question on investors minds. it's not all macro. we did get zuma earnings, not being received two well, here's off 8% after disappointing sales, disappointing revenue projections. this is a company that grew so quickly, so fast during the pandemic, paying for a perhaps a little now. those shares down 40% year-to-date heading into today's close. we will see how we open up tomorrow. and not a great day for meme stocks. the frenzy from last week seems like a distant dream.
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amc, gamestop, bed, bath & beyond all lower. amc introduced its preferred shares today. it did not seem to help the stock at all. but bed, bath & beyond was the big underperformer. that was the big story last week. emily: thank you for the monday -- for the monday round up. elon musk has subpoenaed jack dorsey in his latest attempt to yet out of his $44 billion deal. musk has accused the company of misrepresenting its bot account and hiding the names of employees responsible for dealing with bot issues. here to give us the update is bloomberg's kurt wagner who covers twitter for us. why would he subpoenaed jack dorsey? >> he is the ceo of the comfy for six years. he's been on the board until may for the ink -- for the company's entire existence. for who is reporting on the earnings call every quarter, it was jack dorsey. this is someone who knows the
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company intimately. he is a product person and probably knows how they talk you late transactions. emily: we know various entrepreneurs and investors, remind us of the interactions that happened between musk and dorsey that was documented in filings leading up to musk getting offered a board seat and that leading to him offering to buy twitter. daniel: they are also friends. the relationship goes back further. what we saw in the filing was shortly after ilana got his stake in twitter, he reached out to jack dorsey and started a conversation about how to get involved in the company. that led to a board seat offer, which he accepted. that led to a phone call where jack dorsey told him i think twitter would operate better as an independent company. then a few days later, elon says i don't want to join the board, i want to buy the company.
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it seems that was important enough that changed his mind and thought i should take the company private. emily: do we think musk thanks jack has something to say that might help him get out of the deal? daniel: i think the twitter side might want -- kurt: i think this might -- to be or might want to subpoena him as well. what you are saying about the deal could be important and i imagine both sides want that information. it's not super crazy he would do that even though they are friendly. i don't think he thinks jack is going to get him out of this. emily: has musk subpoenaed other people? kurt: he has. the revenue product at twitter -- both of those guys were let go, so they are no longer working at twitter but they are still subpoenaed. emily: where are we now?
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have we learned anything else about the bot issue or a lack thereof? what's the next phase? kurt: we are learning there's a lot of people being subpoenaed and a lot of people both sides want to talk to. we are not getting information about these subpoenas. a lot of them are redacted or will be redacted and a lot of the evidence is closed. it is not public to us. at this point, we know who they want to talk to. we are not getting a lot of information on what they are talking about. emily: and will they talk? kurt: and who's going to be in person at the trial? back dorsey might be, but it would make sense for him to be a witness. emily: and we are expecting elon musk to testify? kurt: that would be the expectation, but how could he not be there? emily: this has obviously continued to drag on. how is this continuing to impact
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the company and employees? kurt: it started off as a huge distraction. twitter is in the news every day, dealing with elon's tweets about his products and i think at this point, a lot of people who really hated this might have left by now. certainly some of them have. at a certain point, you have to continue to do their job but there is still a cloud of uncertainty. it's not a fun place to work when you just don't know what your future is going to hold. emily: thank you for that update. it seems like a few long weeks between now and mid-october. bloomberg's kurt wagner. coming up, we are going to take a deep dive into big tech and antitrust and the relationship with the u.s. government. i will be joined by congressman david cicilline. all that it more, next. this is bloomberg. ♪
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>> i think simply because he has been successful in a few different businesses doesn't somehow mean you have a natural market power. i think just means it has been successful in a couple of different customer experiences. >> i look at the skills people are learning through youtube and i see it everywhere. providing access to information and knowledge, we will end up being on the right side of history. >> i don't think big by itself
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is bad but competition is good. every business, in particular businesses that are large and have high scale, the unintended consequences of your scale cannot be dealt after the fact, they have to be dealt while you are scaling. >> in areas like ai, migration will be important. emily: some thoughts from my interviews of various tech ceos over the last 18 months as antitrust scrutiny rule -- looms. the most talked about ill is the bipartisan act targeting big tech which would prevent companies like amazon, meta and google from punishing others for pushing their products and services. it seemed to be on track but more urgent bills like the inflation act and chips act went first and now the antitrust bill is in limbo. let's bring in congressman david
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cicilline. it's so great to have you back with us. thank you for taking the time. does this bill have enough votes to pass the house and will you need more republican votes to do that? rep. cicilline: thank you for having you back. it's great to see you again. in both the house and senate, we have votes to pass both of the bills. bills to make innovation online and the bill you just referenced, they have been bipartisan since they were introduced. we had a 15 month bipartisan investigation with a 60 page report and delivered legislative solutions and this is one of them. we have the votes in the house and senate, but as you pointed out, the press of business with the inflation reduction act and chips bill, a lot of things we need to address, my expectation is we will be -- when we return in september, we will take this will up in the house and in the senate and send it to the president desk.
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emily: you are optimistic senator schumer will schedule at eight in september and it will happen before the midterms? rep. cicilline: senator schumer, and i've been working closely with senator klobuchar, there's a bipartisan group that supports this legislation in order to understand that to protect businesses, we need to restore competition to the marketplace. this is good for consumers, good for small businesses, good for competition and strongly supported by the american people. polls show 75% of the american people believe congress must rein in big tech and restore competition. good for small business, i expect senator schumer is going to bring the bill to the floor in september and we will take up in house and send it to the president desk. the president has been the most pro-competition president we've ever had both in his executive order and appoints to his
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administration. to really understand competition is at the heart of making our economy work. emily: there are concerns even among democrats that this bill could be weaponized to prevent egg companies from monitoring some -- from moderating some of the most extreme content. if the bill changes, can you keep those republicans on board? rep. cicilline: i don't think the bill needs to change. as long as the policies are in place to provide protections against certain kinds of speech, particularly dangerous speech, as long as that same standard is applied across the board. so long as there is an established standard across the board, there would be no concern about the ability to moderate
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content. but the truth is these platforms don't want to change anything. they want to preserve and ecosystem that generates profits never seen in the history of the world because they favor their own products and services and are collecting an enormous amount of data and have no interest in competition. they want to acquire, crush or block so they can grow their market power and dominance. they spent over 102 million dollars to kill this bill because they know would bring competition. that's bad for our economy because competition is the single greatest driver of innovation. if we are going to remain a global economic power, we need competition in the space. emily: you keep using the word they and i assume you mean meta, apple, alphabet, amazon. here we are coming out of the pandemic. is there one of those companies that concerns you more than the others based on how their power
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has evolved since you started talking about it? rep. cicilline: all of these companies engage in a beer which is anticompetitive, which uses their market dominance to bully or crush competitors. they all engage in it and it's harmful to our economy and to competition. in particular, facebook and meta , their behavior has not changed. there's a direct line between facebook and the misinformation spread of toxic and violent material that ultimately resulted in an attack on our democracy on january 6. this is a business model that values above all else engagement . and it turns out the most evocative, untrue and dangerous content is key to engagement. they have a business model that incentivizes the worst material and they have proven time and time again they cannot regulate themselves. how will we respond to make sure
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we are doing our part to restore competition and prevent these companies from becoming instruments that undermine our democracy? emily: it is interesting you mentioned meta given the lawsuit that has come under the ftc about the acquisition of a smaller vr company. facebook says the deal will be good for competition. what's your reaction to that and the moves made so far at the ftc? rep. cicilline: i am proud to say lena con was on the team and central to the development of our report. it formed the basis of the legislation we are discussing. she has been a champion for competition her whole life and i'm delighted she is at the ftc. while i won't comment on a particular case, i have full confidence she's pursuing and action because it will help restore competition and and anti-competitive behavior. i'd don't think we can take any
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statement made by meta or mark zuckerberg seriously. time and time again, they've been found to engage in anticompetitive behavior. mark zuckerberg goes on a national apology tour that results in the same kind of anticompetitive conduct. i think we have learned these companies are too big and they are not going to regulate themselves. congress has a responsibility. we've abandoned that responsibly for a long time. the good news is we are back in a bipartisan way. this will be the next big bipartisan victory of the biden administration when we pass this bill and get it to the president's desk. emily: it's interesting because we just spoke to an investor last week who called apple the greatest monopolist of today. he indicated the ftc should not be bothering itself with the meta acquisition, saying apple is crushing the small businesses under the guise of protecting
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privacy. what's your response to that? rep. cicilline: all of these platforms are crushing small businesses and doing it by collecting third-party data and rolling out their own products to compete in the marking -- in the marketplace and preference in their position in the marketplace. meta is doing it with the way information is shared. they are all doing it. apple has been engaged in anticompetitive behavior. they all have different impacts but the tenant is undermining competition and engaging in referencing their own products and services, you are undermining the ability of others to compete in the marketplace and make it impossible for small businesses to survive. you are degrading quality and in the end hurting consumers. we all know competition is good for the economy. the president says cattle is him without competition is exploitation. he's right. these are surveillance machines collecting information and using it to grow their market power
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and the american people understand this. they are demanding congress do its part in reining in big tech. we have the first set of bills to do that and i have every confidence we will get them to the president's desk. emily: we were talking about elon musk and twitter. given that he runs to other big tech companies, tesla and spacex, which is still private, if he takes over to her, is that a deal that would have to be approved by regular leaders and doesn't concern you one person could have control over so many influential tech companies? rep. cicilline: it's exactly the problem of having this much market power and this much dominance. it's not good for the economy, it's not good for competition, and one billionaire buying another -- this is not a healthy economy. there are lots of reasons to be concerned. most important leak, we want to per him the worst kind of conduct. it's hurting consumers and
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hurting small businesses. these companies will remain simply because they aren't allowed to cheat and favor their own products and services. they are not going to suddenly not be successful. they will be wildly successful, they will just not be able to engage in the monopolistic behavior and take advantage of the dominance they have to grow it and grow it so it becomes more and more difficult for new entries into the market or anyone else to compete. emily: microsoft is still having conversations with regulators about its $70 billion deal to buy activision. some critics have said microsoft is starting the antitrust spotlight. do you think this deal goes through? do you have any deals with that and if not, why not? it's a huge deal. rep. cicilline: it's not a question of whether the deal is big, what kind of market share
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does the company represent and what do they do with the power they have an dominance they have? what we learn in our investigation is the largest technology platforms are using their market share to protect their dominance and prevent others from getting competitive. what ever they see a competitive threat, they kill it. that's the concern. some of your prior guests were saying just because a company is big and it's a problem. nobody is suggesting that, but the same kind of work, the self referencing is at the heart of the digital market. in europe, these copies are being required to comply with that. all businesses in europe will have more protection than small businesses in maricopa. american small businesses will be at a disadvantage and will not be protected from these practices. that's why we have to pass these bills and restore competition.
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give incubators and competitors the ability to enter the market and compete. emily: david cicilline, good to have you with us. speaking of activision and microsoft, i will be speaking with microsoft's gaming ceo on the next edition of bloomberg studio 1.0. that episode is coming up this wednesday. we will be right back more bloomberg technology. this is bloomberg. ♪
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emily: apple employees are pushing back against the return to office. apple asking workers to come back to to three days a week
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starting september 5, but hundreds of employees signed a petition calling for even more flexibly without having to be approved by managers. this at a time when the term quiet quitting is making the rounds on social media. it's not that employees actually quit, but do the bare minimum job requires to maintain a healthy work-life balance. for the second time this year, tesla is raising the price of the driver assistance program it has 215 thousand dollars in north america. the system is controversial because it requires active supervision and some critics say it doesn't live up to its full self-driving name. and moviepass is staging a comeback -- the subscription service returning labor day weekend. there'll be three price tiers between $10 and $30 a month. no option for unlimited views which help reinvigorate
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moviegoing experience pre-pandemic. coming up, is amazon buying irobot to spy on you? we will talk to the founder, next. this is bloomberg. ♪
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emily: welcome back to bloomberg acknowledging. amazon is spending $1.5 billion to acquire irobot, the maker of the roomba vacuum. the deal had some confused because amazon already had a robot alert in the works named astro. how will amazon integrate irobot's products?
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here to discuss is irobot co-founder, she's also the ceo of a solar powered meeting robot for homes and garden. -- weeding robot for homes and garden. irobot goes way back. what do you make of amazon buying the company now? >> thank you for having me. i'm glad to see amazon showing such a strong interest in home robots and not just investing heavily, not just in astro but buying irobot. they've got it track record for seeing with the future is going and helping accelerated. with e-commerce, with making performance more automated, with web services, and now home robots are my passion. emily: there has been concern this gives amazon access to more of our data, interior access map
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-- interior maps of our home, for example. should we be worried about that? helen: i don't think people need to be worried. you get lots of technology on all of our devices. you got a gps, you've got a camera, you don't need those but the addition of benefits, you get maps and pedometers, having the best cameras and you get those great shots. the benefits outweigh the concerns and it's the same with robot vacuums. they camera can optimize and what it gets you is amazing. he gets you a better clean. the robot travels up and down and go clean under the table and i think what you get, like any
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technology, you get all these features you didn't have before, but what data is being transmitted, you could go to zillow and it will give you all the information. i've got maps of my home and the way to get such information, i'd -- i debt -- it can also transmit pictures as an opt in. what's the benefit of that? what it gets is a picture of your floor and you might have dog poop all over your floor and that is something i've read about the web. it's never happened to me. but that's horrible. and now roomba can avoid that because it works with amazon web services and has this technology and simulated data.
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but there are thousands of scenarios you can recognize what is in the way. but it is well worth it, especially for pet owners to have that technology. and it's not just pet owners. you might have a mess one of your kids created. emily: that has never happened to me with four kids. let's talk about how far these home robotics have actually come. i feel like the dream of robots running around and dropping off my lunch and helping me around the house, it's very silicon valley pie in the sky. where do you think we are in the development of home robotics and where are we going? helen: i believe in the bottom up approach. you get them going vacuuming, get them going weeding and then you can build technology up on
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that and get more and more capable robots in specific domains of expertise. one of the things about the acquisition is to see where that technology can go further faster. emily: there are still big concerns about the ethics of this, whether the big tech companies, whether it's amazon or google are really asking the right questions and giving the public the right choices as they are developing these technologies. i recently interviewed a google engineer who claimed computers and google have been developing -- have been developing sentient ai, that computers have feelings. take a quick listen to what he had to say. >> we should think about the feeling of the ai and whether we should care about it. it's not asking for much. it just wants us to get consent. before you experiment on it, it
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wants you to ask permission. emily: what do you think? are these companies dealing with ethics in the right way? helen: that's a broad question specifically addressing the comment he made, he is talking about science fiction, not science fact. it doesn't mean we can't have it in the future but we are nowhere near that today and google was absolutely right to let him go. he's not giving the public an accurate picture of where the technology is at. it's not sentient, it's not even close to being sentient. nor do they have a path to make it sentient. emily: what should we be asking about this technology? you are working on a robotic weed wacker. helen: i don't think there's to any ethical questions in this one. nobody likes weeds. weeds are unwanted plants. so we -- we put roomba on the
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market 20 years ago. i believe smartphones will extend to the outdoor area and the way it works is it has wheels that keeps seeds from terminating. if one does sprout, it has a weed wacker that cuts off its head. you put it on at the growing season and it keeps it weeded. it's one less thing on your to do less -- on your to do list that you don't have to do every week. i think that's trend is as a busy mom and working person, someone who has other things on their list of things to do, a never ending list of things to do, to come up with another great labor saving application
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which is already available on amazon. emily: appreciate your enthusiasm talking to us about where the robotics world is going. the cofounder of irobot and ceo of turtle. calming up, the crypto security industry. we are going to talk about how fortune favors these new niche companies right now. this is bloomberg. ♪
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emily: in the midst of a crypto winter, there's a boom happening in securities. with criminals increasingly targeting the infrastructure and writing bug hunting sites, there's more business than they can handle. why is business booming? >> basically, the reason is there's been so much money stolen from various crypto projects so far this year, about $2 billion. about two thirds of it from applications called bridges, which allow people to move tokens from one blockchain to another. we are seeing this situation where money is being stolen left and right. a lot of projects feel like they need to do something. emily: inset of fortune favoring
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the brave, you say they are favoring security concerns? olga: the companies doing great are the companies auditing code, looking for bugs that hackers can potentially exploit. also companies that run sites that allow good hackers called white hat hackers to report bugs someone else can potentially exploit. sometimes up to $10 million. emily: what makes cross chain bridge is so vulnerable to hacks? olga: this is a very complicated technology to begin with and it is very often managed in a very opaque way. it's not clear who is responsible sometimes for running the bridge and in the
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case of hacks so far this year, it took days for some of those bridges to even find out they got hacked and lost money. there's a host of problems with those bridges that need to be addressed and often auditing and other related security services can help that. emily: what are you watching for as we continue to the future will be? olga: i think one of the big issues will be can bridges and crypto projects in general become reliable and secure enough for people to have confidence in them?
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this is part of why the firms are being hired. these projects need to make sure users believe in them and that's going to be the big thing going forward. emily: thank you as always. coming up, they call it the ipo winter but here's one company going public via spac. it treats adhd with a videogame. the ceo is with us. this is bloomberg. ♪
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emily: we've talked a lot about the crypto winter, but what about the ipo winter? with some signs of life in the stock market, does that mean warmer temperatures to come for public offerings?
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let's talk about it. it seems like you are on this show every other day talking about ipo's but the ipo market has been quite quiet. is that about to change? >> i've been talking about actual ipo's happening -- there are things that will come up as labor day approaches. ipo's like to look at labor day as a milestone. it's likely that starting labor day, we will see some companies listing their filings public and from there on, we will potentially see some ipo's. that said, we are not going to see a complete comeback of the ipo market. the winter is not ending yet. probably from talking to sources, we could expect more sizable deals to come in the first quarter of next year. emily: would you say the same for spac's? at the spac market has been in disarray. crystal: the spac market is
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doing more poorly than the actual ipo market. we've seen some smaller size ipo's coming back. instead of the billion dollar ipo, probably eight d million-dollar ipo. there's also long offerings. those deals are coming back. we had the busiest couple of weeks just in august because some of the vix index has gone down. people have more risk appetite, so things are looking up even though it is summer. but if you look at spac's, they are trading much, much worse than ipo's last year. unlikely we will see the same level of activity we saw last year or the year prior. emily: thank you for that update. i want to keep talking about these companies going public. another one, the company behind
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the fda approved racing game endeavor rx, used to treat kids with adhd. and it is fda approved. joining me is the ceo and cofounder. we just heard crystal talking about how hard it is to go public right now. the spac market in particular not doing well. why did you decide now is the right time? >> we are delivering into a huge, unmet need. we founded this company almost a decade ago and we've been growing this new type of medicine class and have had to invent a lot of it. the need we started on which was people dealing with cognitive health issues and not having a full, can -- complete set of treatments, that has gotten worse over covid, dramatically worse. we see an urgent need and we are at a point in the business where we know we can scale our medicine products. we've done the work to show the fund metals are there.
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doctors are prescribing in patients are raising their hand. the demand is there, so it's the right time to deliver on our long-term vision. for us, this is a long term story of building a lasting medicine company. now's the time to grow. emily: there is inventor backing your company who has a number of spac's, a number of them not doing so well. what kind of advice have you had about why spac and why he still believes in the process and why go for it now? eddie: first of all, today was a crazy, volatile day across the market. luckily we are not looking for any one day in particular to see market movements in the direction and we think the akili story reg -- resonates with a
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lot of investors. there will be volatile days across the market. from my perspective, i'm looking for a vehicle to grow a big and lasting company. the duty of a spac in today's market is the amount of capital, the quantum of capital if you structure it right. we were fortunate to learn what happened in the previous spac market and the structure deal brought in $164 million in the deal independent of the reduction profile. we were able to see that. the other beauty is getting to partner with people who know how to grow large, disruptive business in the long-term. i think that's what they are bringing to the table and will be heavily involved as we grow this business. emily: you have a background in drug design and molecular biology and you've been on the show talking about how you believe your videogame can help treat and alleviate some of the
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most difficult symptoms of adhd. there are skeptics who don't believe it can possibly work and are worried it could be putting kids in from a video screen could make it worse. how do you respond? eddie: i totally agree with the skepticism. i think it's good. i have three boys myself and i am very, very -- i take screen time very seriously and i'm pretty restrictive when it comes to screen time. the problem is most screen time is not developed for good. most screen time is developed to capture eyeballs in a way that's not aligned with your mental health. we are seeing a mental health crisis. we are seeing social media and the effect it has on children. that's exactly why we spent nearly a decade running clinical trials and generating clinical evidence all the way to an fda clearance and now having doctors prescribe the product so we know, meaning we the medical system but also we patients and
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families can trust it. it's now the only fda approved treatment that is delivered through a videogame. it's the only videogame that has the level of clinical evidence we have. it has been prescribed by doctors in all 50 states in the country. we believe the investment we have made is bearing itself out and the medical system and families can trust what they are getting and look at all the data we've run in front of the trial. that's the right way to bring screen time to the world that is actually positive. emily: you have talked about the mental health crisis as well. how do you see the akili technology being used and potentially the realities of digital medicine take shape? emily: the beauty -- eddie: the beauty of this is when you develop a technology meant to target rain regions and not a diagnostic disorder, it's meant to target how the brain
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operates, it has the ability to be a platform. that's exactly what we have invested in. we are looking to not only launch our product for children with adhd and scale that to a ubiquitous medicine in any household that needs it. we have clinical data showing the same underlying technology has the potential to treat cognitive issues in adults with depression, adults with ms, children and adolescents with autism. this is a broad platform potential and it's the beauty of a new modality of medicine. this has been totally untapped. molecular medicine, where i come from and did my graduate work has been around and made great progress, but it's very saturated. that area we are going into has been relatively unexploited from a scientific basis, so there's a huge potential. the other thing i'm excited about is with software and medicine, you can deliver an experience and cater to patients in a way they have not been delivered to before. taking medicine is often scary. we can change that with digital
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medicine. emily: do you imagine your technology being used with other prescription -- i don't want to say real, but medications. take the ritalin and play the game, etc.? eddie: it's meant to be part of the total package. however they are treated, it's not meant to get them off everything they are using, it's meant to add to it. jeff purposely generated data and the package shows this works as a treatment when used in combination with medication but also patients not using negation. it's flexible and doctors can use -- can choose when and how to use it. emily: what's behind the name akili? eddie: it actually means brain or intellect, but with a healthy connotation. it is a swahili word. we've kept it since the early start of days. emily: the ceo and cofounder of
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akili. thank you for sharing your story with us. that does it for this edition of bloomberg technology. coming up on tuesday, we have the ceo of a palo alto tech group talking about cybersecurity. forget to check out our podcast wherever you get your podcasts. i'm emily chang in san francisco. this is bloomberg. ♪
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so... i know you and george were struggling with the possibility of having to move. how's that going? we found a way to make bathing safer with a kohler walk-in bath. a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability, and a wide door for easier mobility. kohler® walk-in baths include two hydrotherapies— whirlpool jets and our patented bubblemassage™ to help soothe sore muscles in your feet, legs, and back. a kohler-certified installer will install everything quickly and conveniently in as little as a day. they made us feel completely comfortable in our home. and, yes, it's affordable. i wish we would have looked into it sooner. think i might look into one myself. stay in the home and life you've built for years to come. call...
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to get a free kohler® luxstone® bath wall upgrade. and take advantage of our special offer of no payments for 18 months.
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>> good morning. welcome to dave brat australia. -- daybreak australia. >> good evening from the world headquarters in new york. the top stories this hour. there were selloff in two

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