>> 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: move from bloomberg's world headquarters in new york, i am caroline hyde. ed: i am ed ludlow, reunited in new york city, this is "bloomberg technology." caroline: full ipo coverage.

we will bring you everything you need to know. ed: we will get the inside look into the digital asset industry as the firm announces it has raised 500 $80 million for new funds. caroline: the ai startup raises 100 million dollars to further grow its business. we will have an exclusive conversation with the ceo. let's check in on markets. we are all looking at what is happening in terms of the fed, the bank of england, the bank of japan as well. the two-year yield ticking higher. some nervousness about whether we are expecting a pause later this week. new york crude the inflationary pressure point. $92 a barrel, up one point 2% again. -- 1.2% again. even amid the caution and nerves, we are seeing a bid into bitcoin.

we are seeing some outsized moves. still above the $27,000. ed: there is a lot of news driving movers. apple rallying up 1.9%. they are trying to make sense of the early preorder data for the iphone 15. the market seems to like what it is seeing. he goes on sale september 22 in this country. we follow it closely because we want to know if it is a driver of an upgrade cycle for apple. here are some names i am looking at. disney basically flat. there is a lot on the table with some interesting names in the mix. interesting call from bernstein saying it is highly commoditized. we want to see evidence of

stabilization. we are in our third session since the debut thursday. it falls friday. we are now down below, around $57 a share. interesting because there are ipo's waiting in the wings. caroline: this is why new york is hot. it is an ipo week. let's think about instacart first and foremost. it is finally set to take the plunge into public markets. joining us is k.d. roof and -- k atie rufin. we don't often see ipo's on a monday. katie: big ones not typically on pricing monday night. but why not? caroline: we have someone walking in front of the camera. it is monday madness.

we are new to this studio. i'm interested in what you think this is a test of. is it a test of the pivot the ceo has made to focus on the e-commerce bellwether player and not just delivery? katie: sure, yeah. the market is looking at a lot of different things. i think it is a big test of whether the market cares more about profitability or growth. there has been so much said about why all of these tech stocks went down the last few years. a lot of people are under the impression public tech investors care more about the rate of growth the they cared more about the rate of growth before and now they care about profitability. instacart has been focusing on new business segments. caroline: remind us, who is set to benefit? katie: sequoia backed it early.

there have been vc's that invested at the top of the range and instacart might just be $10 billion. sequoia invested around $1 a share. i would say the average cost per share is going to be meaningful for a lot of vc's. there are some venture firms that may have invested too much at the pre-ipo stage. a lot of them are crossover investors like hedge funds although they invested in several rounds prior to the $39 billion valuation. there are some investors that will be underwater. caroline: katie roof breaking it down for us, thank you. it is not the only ipo. ed: it is a mad monday. let's keep the ipo conversation going. klaviyo gears up for its ipo.

i have never seen anyone as keen to break news as ryan. let's respectfully say it was the less talked about name. but what will happen in the next 24 hours? >> you say it was the one less talked about but if you look on paper and think about size and profile, instacart is very similar to klaviyo. they are both pushing a $9 billion valuation. it has followed instacart's lead . they were looking to boost the price range. they are now pushing $27, $29 price range. i think this confirms what we learned last week. this is still a tentative time for markets. there has been a shot in the arm for companies perhaps thinking we have a good amount backed up

by cornerstones. let's play it safe and smart. they are pushing --they are raising their range. ed: you saw the names behind clay be out --klaviyo. which banks will help take it public? >> 11% of their revenue comes from shopify. i think when you start thinking about how the consumer responds in the retail appetite, it is interesting to think about the insights these guys are giving us across the spectrum. i would say they are very different businesses. i think it is probably good not to draw too many comparisons. tomorrow, we would have both instacart pricing today, trading tomorrow and klaviyo pricing tomorrow for trading on

wednesday. caroline: focus on the difference for a minute. what is a marketing and data automation provider? what is klaviyo up to from a business model perspective? >> it is getting down into the weeds for what they think people are interested in and how they can better provide insights to those looking to make the most money. i think when you think about instacart, it is grocery delivery, how to provide them the insights into what people are wanting. even outside the ipo candidates, there are quite a few companies on the m&a side that are good options for businesses exposed to marketing, data, insights. caroline: making us by the right thing at the right time, you need data for that. thank you. coming up, we will talk more

about the world of crypto, digital assets. there is some fundraising going on. his firm just raised $580 million. we will get into it. this is "bloomberg technology." ♪ the first time you connected your godaddy website and your store was also the first time you realized...

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bucking that trend and the concerns around crypto, we have someone who has raised new funds . pleased to welcome to the show spencer bogart, blockchain capital partner. is there more interest coming into crypto? spencer: there is certainly plenty of lp interest. we continue to double down on the industry we have long-term conviction in in the middle of a bear market. we are looking forward to deploying capital into fresh opportunities. caroline: talk about the fresh opportunities. where do you think there is disruption at the moment? spencer: we see opportunities at the early and later stage. if we go back to 2020-2022 and see the industry was mostly

characterized by an influx of new and large allocators deploying large sums of capital to the mid-and late stage segment of the market. all of those capital allocators have walked off the playing field. they are no longer active in the industry. during this last kind of market cycle from 2020-2022, we did have a lot of early-stage companies funded. a few of those are grow into the mid-stage of the market. that is what we are keeping a close eye on. ed: you guys already have $2 billion in assets. is it that the capitol had been committed and you are bringing new funds because you have opportunities to write new checks? spencer: correct. assets under management grew to $2 billion over the last decade. we are now deploying capital out of our six early-stage opportunity fund during series b and later. the $2 billion came from the prior five funds. ed: explain how the focus has

changed with the new fund. spencer: it continues to cover a lot of opportunities in the space. we are focused on, if you think from a sequencing perspective, which opportunities need to work first. that is largely thinking about things we broadly bucket under centralized finance. these are largely on-ramps and off-ramps. things like coinbase and crack -- kraken. nothing else can work unless you have reliable on-ramps and off-ramps. over time, we have moved more towards more crypt of native -- crypto native opportunities. gaming have been on the horizon the past couple of years. caroline: aside from the investments you are making, you

said these big players writing big checks have walked off the field. they are still out there with a massive crypto fund. are they not deploying the capital they raised? spencer: those are not the large allocators i am thinking of. most of the crypto native investors have stayed true to the industry and continued to deploy capital. thinking more of large late stage equity or hedge funds that were building pockets of illiquid private investments. several came in and said we have zero exposure and would like to get up to 10% in 12 months. that resulted in clean prices above and beyond our appetite. the husband's push and pull of institutional appetite -- caroline: there has been this push and pull of institutional

appetite and regulation. how is that affecting the company's managing to scale up the moment? spencer: i think they are looking at the same thing, the metrics on the ground. yes it is a bear market and crypto winter. we have seen stablecoins process over $6 trillion of volume the past 12 months alone. if we expanded, it would probably be closer to $10 trillion. we have $700 million of protocol revenue generated by these applications. we have $700 billion of volume going across decentralized exchanges in the past 12 months. on the ground, there are a lot

of healthy things happening. it is not the way most people perceive it that in bear market winters it disappears. ed: when i think about blockchain in gaming, it is about monetizing in-game. is it limited to that, the opportunities you see? spencer: it is not limited to that. i would characterize the opportunity in gaming at the same in most applications of blockchain technology which is to put users at the center. in the case of gaming, we have millions of people around the world that invest dozens or hundreds of hours a week into acquiring game assets. they spend time and money to acquire these assets. the promise from a lot of blockchain startups is within a gaming contest, they can give users actual ownership of the assets the same way they would in the physical world. ed: spencer bogart, thank you.

coming up, a conversation with the cofounder and ceo of the ai startup. that is coming up next. this is "bloomberg technology." ♪

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ed: time for talking tech. the ceo of process is stepping down. he will remain as a consultant to the board and the parent company until the end of september 2024. his departure comes after a plan criticized by investors. during the meeting friday with turkiye's president, the chinese internet company pledged $2 billion. alibaba has already invested

over $100 billion through its turkish unit, turkiye's biggest platform. they have agreed to by the data center business for more than $800 billion. they will use the capital to bankroll expansion across southeast asia. the deal allows kkr to take up to two seats on the board further expanding its reach into the server networks the power the internet. the artificial intelligence startup is planning to invest more. the round values the company at more than $500 billion. joining us is the ceo and cofounder, may habib. what do you use those funds for? may: thank you so much. great to be here. we are using the funds to invest in our models and platform.

enterprises are ready to move from the talk of the promise of generated ai to impactful programs. caroline: talk about impactful revenue for you as well. there is optimism around how much revenue this will bring in four key public companies. what are you seeing in terms of growth? may: we are four x since the beginning of the year so an influx of folks who have gotten her hands dirty working with large language models but are stuck in poc purgatory of products that do not make it to production. we succeed when we can help customers realize the promise building applications that people actually use that involve their data and are secure in their environments. caroline: employees becoming more productive.

this comes at a tough time from the mentality of their's productivity to be had but we are worried -- there is productivity to be had but we are worried about strikes for writers and actors. ai is a worry. how much are you thinking you might end up displacing workers? may: that is a big concern of executives who took a chance on us and joined this round, customers like vanguard and l'oreal. those executives are not promoting ai to displace jobs. we are all in concert to transform work to make it more creative, more interesting, and really take away the cognitive manual labor in a lot of workflows. i would say we are quite different in that regard in the way it is workflow based. people are at the heart of making generative ai work.

ed: i think i am right in saying you are also in the h 100 club. how important is it to have that compute access? you have a cluster in the thousands? may: nvidia is a close partner and customer. we would not be where we are if we did not have that partnership. there is a philosophy of smaller models are more out of gile -- more agile. they are easier to manage and put in the clouds. bigger is not always better. ed: that is a good point. we have covered a lot of these raises of hundreds of millions at high valuation. do you worry about the hype? do you think your own valuation was fair in terms of your potential? may: yeah. we could have done this at billions of valuation which i think is absurd.

some of what is happening is not good for the industry. we want to unhyped use cases and augmentations. the real use cases are when you put people and ai together. i think and overfocus on the large language models, the valuations of the companies is distracting from actually getting value. caroline: we come off a week where a lot of thought leaders were in washington thinking about future regulation. how do you think about your role in forming that? may: we already get rfp's that ask us about the e.u. app and it is not even law yet. we have built for customers being able to audit our training data and look at if there is copyrighted information.

i think the companies that make it in the enterprise have to think about a world where regulation is here globally and not just in europe. ed: what roles are a priority for you to hire? what kind of people do you need? may: literally everything. if you are in tech and want to work in ai, please email me. caroline: we will not ask you to give us your email address on live television but maybe they can go to your twitter or social media accounts. thank you. coming up, let's talk about meta bringing back perks for employees to try to lure them back into the office after layoffs. this is "bloomberg technology." ♪

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ed: welcome back to "bloomberg technology." ed ludlow in new york city. caroline: so good to have you here. let's check on markets. nasdaq turning to the higher side. nasdaq 100 in particular. we get the federal reserve wednesday, bank of england thursday. bank of japan to round up the week. where will the pressure points before central bankers? to the upside on the two-year yield up two basis points.

we are worrying about whether we pause this time but have to keep on raising. prices of oil on the rise. off and zaidi up almost 3%. ask not the reason why. many say it is liquidity. we are above $27,000. apple managing to make up some of the selloff friday as we see good mood music around interest in the iphone 15. tesla off 2.6%. some analysts concerned about the earning potential of the company. microsoft may be a bit of a revolving door. the head of product that has been at the company a long time will be staying long enough to help replacements transition into the role but he is leaving

microsoft. ed: it has been a rough year for meta employees after 20,000 teammates were laid off over the past year. now, they are starting to enjoy coming back into the office. one reason is the company has survived a number of popular pre-pandemic perks from branded t-shirts to happy hours. this is interesting. when you and i reported big layoffs, we covered how deep and sudden and wide they were. many people were upset. talk about some of the cultural fixes meta is bringing back. >> as you mentioned, people were anxious and scared they could lose their jobs at any moment. they started to scale back perks. now those are coming back. employees say happy hours on thursday are happening again. dinner time is now at 6:00. people are excited about that. restaurants are opening again. some of the more luxurious perks

like laundry services and haircuts are back. people are excited it is coming back and it is boosting spirits. caroline: what about enough jobs to go around? in your story, people are being brought back that had previously been laid off. >> i talked to some employees that had been rehired. there are other people in the process. it is slow and they have to go through the application process again but meta is hiring. they want to hire more people in hot areas like generative ai. ed: we are in a time when we are not really talking about the metaverse and the losses there but we are talking more about the work meta is doing in ai. what is the latest signal we are getting out of meta on what the priority is for mark zuckerberg?

>> it is still ai. they will tell you metaverse is still a priority but it really is ai. employees said everyone wants to be on the generative ai teams. that is the hot team doing well getting money. even from what teams they want to be on, you can see that. they have code llama. they are pushing to be a leader in the ai space. caroline: thank you for that story. here you are in new york with all of your knowledge of the zaidi in the past -- the anxiety in the past. meta had to work to get back the morale. ed: it was described as at first they used a scalpel to clearly work out what they needed to do. they later brought the sledgehammer which is one way some executives put it to me. they realized we actually need

some of these people. it is amazing to see her report there are individuals being hired back. caroline: when share prices are on the rise, that is helpful for the mood music as well. there are questions about the future of social media, notably of facebook and instagram, and how we regulate that going forward. we understand more than 100 parents have signed an open letter to the u.s. senate to oppose the kids online safety act that aims to make the internet safer for kids but they are raising concerns they could give new power to states attorney general to dictate what kids can access online. it could cut them off from lifesaving resources and community. let's bring in someone trying to find the nuance in this.

project liberty tries to address the harms of social media. you are someone who wants technology to be the answer. when we talk about ai and the focus, tenant solve for the nuance -- can it solve to get this difficult nuance satisfied? >> i think it can. this is moving quickly. we need to focus on the infrastructure. i am a builder at heart. i'm am a fifth generation builder. when we look at the current design of big tech and in particular how social media platforms are being used and brought forward, we have a design and infrastructure problem. now, we have the technology to fix it.

we can provide data control to individuals. i think we need to fix the tech to fix the problem. fixing the tech alone will not solve it. ed: meta is working on artificial intelligence. from a regulatory perspective, they said we do not know who should have oversight but we do not think we should do it ourselves. >> they do not want to fix it. these big platforms have our data. the aggregate, exploit, and monetize it. we need a new design for the technology where individuals are in control of their data. infrastructure is part of it but will not solve the entire problem.

the kids online safety act, we have seen the level of concern of parents with the tech architecture. we know it is broken. this is an effort in the right direction to let big tech know we are going to fix it. i think it is a step in the right direction. ed: what is the technological fix? is it algorithmic? i have asked that many times and have yet to get a straightforward answer. >> they do not want to give you an answer. ed: what is your answer? >> returning control to the individual. ed: blockchain? >> we are in the third generation of the internet now. the first and second generations had protocol. we need a third generation enabled by another protocol.

we would suggest a decentralized social networking protocol which enables individuals to own and control data and by deploying blockchain to drive value from the data. caroline: we came into the conversation talking about data. they never built this because they thought it would be a negative in any way. they want to try to ensure kids are not exposed to harmful content. there is this conversation that this is just about u.s. companies and regulations. this is about chinese players. take a look at what mike pence had to say about the regulation of tiktok. >> tiktok is a platform for the communist chinese government collecting data on americans every single day. young americans deserve to know that their privacy is being compromised with participation in the tiktok platform.

caroline: does self-regulation, technological regulation, or regulation coming from the u.s. solve for international players? the tiktok example is a good one. autocratic technology is awesome if you are in an autocracy. it will work well for china. you cannot have a democracy without the technology. ed: the proposal from tiktok and oracle was a technological solution. how is the data in the u.s. datacenter with oversight from the u.s. government, not have data housed in china, why was that not a good enough solution? >> it is not a good enough solution. it is playing around the edges. when the model is so broken,

don't waste time trying to fix it. build a new model and make the old one obsolete. that is where we are now. 20 or 30 years ago, we needed large of server farms gathering data. i don't think people went out of their way thinking they would do something bad with all of this data but look at where we are now. kids anxious, depressed, killing themselves. our society generally, we cannot have conversations anymore. highly polarized. our democracy struggling to survive. i would argue our economy will struggle to survive if the bulk of the value resides on five or six platforms. there is a moment where we can change this. it does not have to be this way. caroline: can i ask a personal question as to why you are doing

this? you are a father of six, largely grown. you say your builders. fly so focused on this part of the infrastructure, even though it is not bricks and mortar? >> it started a decade ago with the georgetown public policy school in washington, d.c. brand-new school. we thought maybe we could contribute in that way. learned very quickly, inside the public policy school, we learned quickly the data the policymakers need is not available to them. it is in these large platforms. that is where we began to use our skills as builders to look at the design of the technology and came to a simple conclusion. why is our data being aggregated by a few platforms? it does not feel correct to meet. we should own our digital dna.

this is our lived life. there is no separation between your biological and digital identity. they are one in the same. there is a lot of value to be derived from the data. a lot of innovation will occur. i think we should leave it to innovation and regulate things to buy the time, but this is not a regulatory fix ultimately. this will be a tech fix for a tech problem. this time, let's get it right by optimizing for the right things. things that are good for kids, good for society, good for democracy. ed: frank mccourt, jr., terrific conversation. next, we will discuss the health of the boston startup ecosystem. "bloomberg technology." this is"bloomberg technology." "bloomberg technology." ♪

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ed: it is good to be on the east coast. i know where i am. new york city reunited with caroline. we will be looking at the boston startup ecosystem in full swing. who better to talk to than lily lyman? i want to go straight to klaviyo. potentially a big ipo. a tech company from your neck of the woods this week. how excited to get people in your community in boston? >> thanks for having me.

we are very excited about the klaviyo ipo. i think in part because it is the type of company that gets built here in boston. it is a great team, huge market. they have been very capital efficient how they have built. i think that is reflected in the ownership. overall, it is the type of business built here in boston. there's not a lot of puffery around it. they have done a good job building have earned the right to have success this week. caroline: the retail investor not that aware of it this is your sweet spot. how much is boston the ecosystem for that as we see the world shift to ai? >> as you mentioned, we are b2b investors. boston is typically known for biotech and health care. we see that there are a variety of sectors thriving in the b2b

space whether it is commerce with companies like salsify . and as you mention, increasingly in ai and machine learning. we have had the pleasure of backing several companies in that space. what makes the ecosystem unique is the universities in our backyard. a lot of the leading edge technology and talent coming out of those ecosystems fuels what is now powering the ai and machine learning revolution. we expect to see a lot of tech and talent coming through this ecosystem fueling what people are excited about. caroline: how are you seeing a desire to build in what is a pretty unstable economic environment?

as we had job layoffs, they would go out and build things. is that happening? >> yeah. we are investors in on-campus funds for harvard and mit. the partnership allows us to see the most exceptional entrepreneurs coming out of those ecosystems as soon as they graduate. over 26% of our portfolio comes from that ecosystem. i think in part that is because people continue to see opportunities. the market is difficult but one thing we are excited about is the caliber of founders. you have to be bold and have gripped to found -- grit to found companies in this market. the number of founders and the amount of capital they have raised, if you look at the graduate programs compared to stanford and vertically, it is higher in boston. any given moment, there are

potential founders of unicorn companies walking around campus. we are seeing the entrepreneurial spirit thriving. it is one of the areas where most excited to invest in. ed: the story in san francisco as i went to stanford, i studied computer science, i dropped out and started a company. i did it in san francisco because it is a great place to work and live. if you were going to pitch boston, what keeps them in the city? >> there is a lot in the ecosystem to like. there is access to world-class talent coming out of the university systems but also out of homegrown tech giants i mentioned. and some of the big tech giants from the west coast have offices here. there is no shortage of great talent.

it is hard to find anywhere else in the world that has as much r&d coming out of the ecosystems here. i think the combination of those things, plus there is a thriving ecosystem of accelerators and angels. i think it has all the things you need to be successful. boston was thriving pre-pandemic. post-pandemic, it has accelerated even more. west coast investors learned they could invest outside their backyard, so we are seeing more later stage investment come into boston. some of these multi-geography firms are setting people on the ground to cover the ecosystem as a result. caroline: lily lyman, pray to have some time -- great to have some time. we are going to switch gears and talk about ev's in the wake of the auto workers strike that could change the future of

manufacturing. this is "bloomberg technology." ♪

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product the chinese customers are expecting from us. ed: that was the mercedes-benz ceo on whether he is worried about china's automakers. legacy automakers here have been focusing on it. now they need to contend with another internal challenge, autoworkers striking for better wages and working conditions. it has been going viral. everyone has been talking about it. i hear it comes down to the transition to ev, money, will there be the same number of jobs when we go electric? caroline: it is the same conversation we are having around artificial intelligence. does it end up hurting the workers? ed: in the writers and actors strike, it is about intellectual property.

the funny thing is no one gives a straight answer on the car side. does the ev need fewer people to build? we are still working that out. caroline: we are here for the whole week. that does it for this edition of "bloomberg technology." ed: check it out on the platforms. this is "bloomberg technology." ♪

kailey:atie: welcome to bloomberg etf. matt: let's get to the biggest stories with more than $10 billion global ed of industry, count on to the fed, the central bank widely expected to keep rates on hold but the 10-year hit for 35, the highest level snc