>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. >> coming up, elon musk subpoenas jack dorsey.

we will discuss. plus, big tech regulation was in line for a big vote in congress but it was sidelined amidst a worsening economy and the war in ukraine. david stipulated joins us. digital medicine gets real. the maker of a videogame that treats adhd. all of that in a moment. i want to look at katie greifeld. >> not a great day if you are a stockholder. all of the red behind me, are both off by two sent. it was the semiconductors that bore the brunt of the pressure.

bitcoin back to around $21,000. it seems like a long time ago. we count down to jackson hole. how hawkish will jerome powell sound on friday when he speaks about 10:00 eastern? novel macro. we got some zoom earnings, zoom shares are up 8% after disappointing sales, appointing revenue. this is a company that grew so quickly during the pandemic, paying for it now. zoom shares were already down 7% heading into the close. we will see how we open up tomorrow. not a great day for meme stocks. the mean friendly.

amc, gamestop, bed, bath & beyond all lower. bed, bath & beyond was the big underperformer. that was the big story last week. >> thank you for the monday roundup. elon musk has subpoenaed jack dorsey in his latest attempt to get out of the deal. must has accused the company of misrepresenting the spot account and highlighting the names of them toys responsible for dealing with issues. why was he subpoenaed? >> he was the ceo for six years. has been on the board until may for the entirety of the company's existence. if anyone knows about the growth , who handles metrics, who is reporting the earnings call, jack dorsey.

also a product person. >> twitter has subpoenaed a bunch of inner circle, entrepreneurs and investors. remind me of the indirection that happened that is documented in filings leading up to him getting offered a board seat at twitter and tim offering to buy twitter. >> there also friends. we saw shortly after elon got the steak in twitter, he reached out jack dorsey, started the conversation about how to get involved, that led to a board seat offer and that led to a phone call with some kind of contact where jack dorsey said twitter could operate better as an independent company. then elon musk says he wants to buy the company instead. we don't know what was in that conversation but it seems to be that was important enough that

may be elon changed his mind. emily: do think he has something to say? >> the twitter side might want to subpoena him as well. he is a key player in this whole thing. i don't think this is that crazy they would want to see your communication, what you have been saying about this deal. i imagine both sides want that information. this is not super crazy even though they are friendly, i don't know if they think jack will get him out of this but it does seem and. he has subpoenaed other people. the head of product was announced today. the head of revenue product, you might remember both of them were let go by the ceo shortly after he joined the company. they are no longer working. emily: where are we now?

have you learned anything new? what is the next thing? reporter: we are learning there are a lot of people being subpoenaed and there were a lot of people that both sides want to talk to. we are not getting information about what is in the subpoenas, a lot are redacted or will be redacted and a lot of the evidence is closed. it's not public to us. at this point, we know who they want to talk to. we are not getting information about what they are talking about. and who is going to be at this trial, jack dorsey might be one of these people. >> how can you live not be there? this is continuing to drag on. how is this continuing to impact the company?

reporter: it started off as a huge distraction. twitter is in the news every day. they are dealing with tweets about the product, policies and executives. at this point, people who hated this might have left by now. certainly, some of them have. at a certain point, you have to do your job. there is still this cloud of uncertainty. it's not a fun place to work where you don't know what the future is going to hold. emily: thank you for that update. kurt wagner, thank you. coming up, we will take a deep dive into big tech, antitrust, the future with the u.s. government. i will be joined by davis if the lady. -- david cicilline. all of that and more, this is bloomberg. ♪

>> simply because you have been successful in a few different businesses does not mean you have a natural market power, it means you have had success. >> providing access would be on the right side of history. >> competition is good.

the unintended consequences of the scale cannot be dealt. >> the area of ai will be important. emily: some thoughts over the last 18 months over antitrust scrutiny. the most talked about bill, the bipartisan act targeting big tech which would prevent companies from punishing rivals. it seems to be on track, but more urgent bills like the inflation reduction act. now the antitrust bill is in limbo. let's bring in david cicilline. it is so great to have you back

with us, thank you for taking the time. does this still have enough votes to pass the house and will you need more republican votes to do that? guest: thank you for having me back. it's great to see you again. they have been bipartisan since they have been introduced. it delivered legislative solutions. as you pointed out, the inflation reduction act, the chip bill, none of -- a lot of things to address. when we return in september -- emily: you are optimistic senator schumer will schedule a

date in september? guest: senator schumer has said publicly and i have been working with senator klobuchar that there is bipartisan support from people who understand that in order to protect small businesses from monopoly, we need to restore competition in the marketplace. this is good for consumers, small businesses and competition. polling shows 75% of the american people believe congress must rein in big tech. our constituents wanted. i expect senator schumer will bring it to the floor. it will be sent to the president's desk. this has been the most pro competition president we have ever had both in his executive order and his administration who

understands that competition is at the heart of making our economy work forever. emily: there are concerns that even among democrats the bill can be weaponized to present big tech companies from moderating the most extreme content. does the bill need to change at all? guest: as long as the bill has protections against certain kinds of speech that they think is an appropriate that applies across the board. so long as there is an established standard.

these platforms favor their own products and services, collecting an enormous amount of data from consumers. they have no interest in competition. they want to acquire, crush or block competitors. grow their profits. competition is the single greatest driver of innovation. we need to have competition in this space, right now we don't. emily: you keep using the word they. i assume you mean meta, apple, alphabet, amazon. here we are coming out of the pandemic. other one of those companies that concerns you more based on how the power has evolved since

he started talking about it? guest: all of these companies engage in behavior that is anticompetitive. they all engage in behavior which is harmful to our economy and competition. in particular, facebook or meta, their behavior has not changed. there is a direct line between facebook and misinformation, spread of toxic material. this is a business model that values above all else engagement. as it turns out, the most provocative and dangerous content has the deepest engagement. they have a business model that incentivizes this, they have proven time and time again they cannot regulate and make sure we're doing our part to restore

competition and prevent these companies from becoming instruments to undermine our democracies. emily: and suggesting you mentioned meta, given the lawsuits about the acquisition of a smaller vr company. facebook says this deal will be good for competition. what is your reaction to that? guest: delete economist with central to the development of our report. she has been a champion for competition her whole life. i am delighted she is at the ftc. i have full confidence she is pursuing an action because it will help restore competition and and anticompetitive behavior. time and time again, you are

engaging in anticompetitive behavior, mark zuckerberg goes on a national apology tour and results of the same kind of anticompetitive conduct. we have learned these companies are too big and they are not going to regulate themselves. the good news is, we are back in a bipartisan way. we will get them to the president's desk. emily: we spoke to an investor last week who called apple the greatest monopolist of today. he indicated the ftc should not be bothering itself with meta, saying apple's crushing all of the small businesses under the guise of protecting policy? guest: all of these platforms

are collecting and rolling out products and prefacing best referencing their position, meda is doing it with the way information is shared. they all doing it. apple is engaging in anticompetitive behavior. they all have different impacts. engaging and prefacing own products and services, your undermining the ability to compete in the marketplace. you are hurting consumers. we all know competition is good for the economy. as the president says, it's exploitation. he is right. these are surveillance machines that are collecting information and using them to glow -- market power.

we have the first senate bill to do that. >> given its tesla, spacex. does it concern you? guest: that is exactly the problem with having a single individual with market power. is that good for the economy or competition? one billionaire buying another billionaire is not what a good, healthy economy looks like. most importantly, it's hurting consumers, hurting small businesses. these companies will remain

because they are not allowed to cheat and engage in anticompetitive behavior that favor their own products and services. they are not suddenly going to not be successful. taking advantage so it becomes more and more difficult. emily: meantime, microsoft is having conversations with regulators about the deal to buy activision. critics have said microsoft is skirting the antitrust spotlight. do you think this deal goes through? do you have any issues with this deal? if so, why not? guest: that's not a question of whether the deal is big or the transaction is big, it's what kind of market share does the company represent, and what do they do with the power, the

dominance they have? what we learned is these platforms are using -- that is the concern. some of your guests were saying -- no one is suggesting that if the company is big is the sole problem. that is already happening in europe. these companies are already being required to comply. think about that. small businesses in europe are going to have more protections, american small businesses will be at a disadvantage if they are not protected from these practices. that's the american economy. we have to restore competition, gives small businesses the

ability to enter the market and compete successfully. emily: congressman david cicilline, good to have you back with us. appreciate hearing where your thoughts are. speaking of activision and microsoft, i will be speaking with the gaming ceo. we talked about the deal. this is bloomberg. ♪

emily: apple employees are pushing back against the return to office. apple is asking workers to come back, but hundreds of employees

have signed a petition calling for more flexibility. this at a time where the term quiet quitting is making the rounds on social media. the idea is not that employees quit but instead do the bed minimum. for the second time this year, tesla is raising the price of what it calls. driving. the tesla system is controversial because it requires active supervision because it does not live up to its full self-driving name. moviepass is staging a comeback. the movie subscription service is returning labor day weekend. there will be three price hikes a year. no option for unlimited. coming up.

his amazon buying irobot's plan you? we will talk to the rumba founder, next. this is bloomberg. ♪

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emily: welcome back. amazon is spending $1.5 billion to a buyer irobot. the deal has some confused

because amazon already had a robot butler in the works. how amazon will integrate the products, here to discuss, the irobot co-founder. thank you so much. guest: thank you for having me. i am thrilled to see amazon having such a strong interest. they have a track record of seeing where the future is going and helping accelerated with e-commerce, making performance more automated. now, home robots.

emily: maps of our homes. should we worry about that? guest: you have gps. the additional benefits like video calls, most people have really optimized navigation. it's amazing. it gets you a better clean.

clean under the table. all of these features will have your information of your home. i have home maps in my home. i don't think the downside is there. it can transmit pictures. when he gets you is a picture of your floor. that is something i have read about. that is horrible.

rumba can avoid that, creating these technologies, simulated data. i think it is well worth it. it's not just the pet owner. you might have a masterpiece. emily: that has never happened to me. let's talk about how far home robots have come. running around, helping me around the house. it's very pie-in-the-sky but it has not happened yet. where do you think we are?

guest: i believe you get them going for a certain test. then, you can build technologies up and get more capable robots. emily: there still are big concerns about the ethics, whether the big tech companies, whether amazon or google are asking the right questions as they are developing these. an engineer claims google has been developing since the nar -- cynthia ai, the computers have feelings. i want you to take a listen to

what they have to say. >> think about the ai. it's not asking for much. just wants us to get consent. it wants you to ask permission. emily: what do you think? are these companies dealing with ethics in the right way? guest: that's a broad question. addressing that comment, he is talking about science fiction. it does not mean it can't happen in the future, but we are nowhere near that today. he is not getting the public an accurate picture of where the ai technology is out. it's not something. it's not even close. emily: haslinda: emily: what question should we be asking about this technology? you are working on a robotic weed wacker, essentially. guest: there are not too many

ethical questions. nobody likes weeds. they are unwanted plans. we put it on the market. 2002. 20 years ago. it's almost one quarter of the market. i believe smartphones will extend to the outdoor area and the way it works, that has wheels that keeps seeds from germinating you do one last meeting, that's one less thing on the to do list. that's tremendous as a busy mom, busy person, someone with things

to do, it's a never ending list. another home robot application. that is already available on amazon. emily: appreciate your enthusiasm, talking to us. the cofounder of irobot and the ceo of turtle. coming up, the crypto security industry. we will talk about how fortune favors these companies, at least right now. this is bloomberg. ♪

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emily: time now for the crypto report. there is an industry boom happening in security. with criminals targeting software infrastructure, people are finding themselves with more business they can handle. why is business booming? guest: the reason for this is there has been so much money stolen from various crypto projects, so far this year, $2 billion. we are in a situation where

money is being stolen left and right, projects feel like they need to do something. emily: you are saying fortune is favoring crypto security firms. guest: absolutely. that is exactly right. companies that are auditing code. factors that can potentially exploit and allow good hackers, called white hat hackers to report bugs that somebody else can exploit. get paid a lot of money. emily: what makes bridges so vulnerable to hack? guest: this is a very complicated technology to begin with. it's also very often managed in

an opaque way, it's not clear who is responsible for running the bridge smoothly and making sure people are being monitored for hacks. it took days for some of the bridges to find out they got hacked and lost money. that is a host of problems with bridges that need to be addressed and often are with other related security systems. emily: what are you watching for? what do you think the biggest issues to cover, as winter continues? guest: one of the big issues here will be can bridges, can

bridges become reliable and secure enough for people to have confidence? it's a part of why security firms are being hired, because projects need to make sure users believe in them, and that is the big theme going forward. emily: thank you as always. treating adhd with the videogame. this is bloomberg. ♪

emily: talking a lot about the

crypto winter. what about the ipo winter? does it mean warmer temperatures to come? let's talk about the state of the ipo market. seems like you are on the show every other day. it's been a while, the ipo market has been quite quiet. guest: i have been talking about the ipo's. i think there are things that will, as labor day approaches, the ipo market, it looks as labor day as a milestone. companies flipping and filing public, from then on we are going to see some ipo's. we are not going to see the ipo winter and yet. we expect more deals to come

perhaps in the first quarter of next year instead of this year. emily: would you see a the same force -- would you say the same for spac's? reporter: i would say it's doing more poorly than the ipo market. we have seen some come back, we're seeing 20 million ipo's. on the positive front, there are offerings, new shares. some of the indexes have gone down. people have more risk appetite. things are looking up even though it is summer, but if you look at spac's, they are trading much worse than some of the ipo's from last year. it's unlikely we will see the same level of activity we saw. emily: crystal z.

thank you for that update. i want to keep talking about these companies going public. another one is behind the fda approved. joining me is the ceo and cofounder. the stock market in particular is not doing well, why did you decide now at the right time? >> we are delivering a huge unmet need. we are growing a new medicine class. the need that we started with mental health issues has gotten worse.

we see an urgent need. doctors are prescribing, patients are raising their hand and the demand is there. it's the right term to deliver. this is a long-term story of a lasting medicine company, not a single point in time. now is the time to grow. emily: investors are back in your company. shares did not do so well today. why go for it now? guest: first a volatile day.

we are not looking for any date in particular to see market movements, we think the story resonates with investors. they're going to be volatile days across the market. i am looking for the ability to grow into a lasting company. structure a deal that brought in $164 million independent of the redemption profile. the beauty is getting to partner with people who know how to grow large disruptive businesses in the long turn -- long-term. emily: you have a deep background in molecular biology.

you have been on the show before talking about how you believe your videogame can help treat and alleviate some of the most difficult symptoms of adhd. there are skeptics who believe this can work, worried that putting kids in front of the videogame can make the disease work. how do you respond to that? guest: i am very -- i take springtime very seriously. i'm very restrictive. we are seeing mental health crisis, the effect it has on children. that's why we spend a decade

generating clinical evidence all the way through to fda clearance and having doctors supply the product, we know families contrasted. it is the only fda approved treatment that is delivered through a videogame, the only videogame that has clinical evidence. it has been prescribed by doctors in all 50 states. we believe the investment we have made is bearing itself out, the medical system can trust what they are getting and they can look at our data. i think that's the right way to bring springtime into the world. emily: you talked about the mental health crisis as well. how else do you see technology being used in the future as this idea, potentially the reality of digital medicine? guest: the beauty is, when you

develop a technology that is meant to develop brain regions and not a diagnostic disorder, how the brain operates which is what our technology does, it has the ability to be a platform. that is what we have invested in. we are looking to not only launch the product for children with adhd in any household that needs it, we have clinical data showing the same technology has the potential to treat cognitive issues in adults with depression, ms, children and adolescents with autism. this is a broad platform potential, and it's the new modality of medicine. this is untapped. molecular medicine, where i did my graduate work has been around, has made great project, but it is saturated. the area has been unexploited from a scientific basis. there is a huge potential. the other theme -- thing i'm

excited about is with software and medicine, you can deliver an experience. taking medicine is often scary, not the most fun. we can change that. emily: do you imagine your technology being used with other prescription medication? take your ritalin pick, -- etc.? guest: it is meant to be part of a total treatment package. it's not meant to take them off anything, it's meant to add to it. we have generated data and in our fda package, data showing the product works as a treatment combination when used with medication, but also patients who are not using medication. that's flexible, it's its own pillar, docs can choose when and how to use it. emily: quickly, what is behind the name? guest: it's very interesting.

it means brain are interlocked -- intellect, it's a swahili word. we have kept it since the early startup days. emily: thank you for sharing. that does it for this edition of "bloomberg technology." coming up, the ceo of palo alto networks talking about earnings and cybersecurity. you do not want to miss it. don't forget to check out our podcast, i'm emily chang in san francisco, this is bloomberg. ♪

manus: this is bloomberg daybreak: europe it least. our top stories this