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'Bloomberg Technology' Full Show (08/22/2022)

Aug 24, 2022

'Bloomberg Technology' Full Show (08/22/2022)

from the heart of where innovation, money and power collide in silicon valley and beyond this is

bloomberg

tech with emily chang i'm emily chang in san francisco and this is

bloomberg

tech coming soon quotes from elon musk former director twitter general jack dorsey Dorsey could say that would help Musk out of the deal we'll be discussing, plus big tech regulation was in line for a big congressional vote but has since been sidelined in the middle of a worsening economy and a war in the Ukraine, one of the main ones. Crusaders to Seize the Power of

Technology

Joins Us This Hour Rep.
bloomberg technology full show 08 22 2022
David Cicilline Chairman of the House Antitrust Subcommittee Digital Medicine Gets Real The Creator of an FDA-Approved Video Game Treating ADHD Goes Public Via specs today the CEO of akili will be here all of that in a bit but first i want to take a look at the markets katie painefeld from

bloomberg

here with us now katie take us through the day emily not a great day if i were a stock bull today like you c A view of all the red behind me on wall street, the s p 500 and nasdaq 100 both down more than 2 percent but it was semiconductors that really held up the brunt of the selling pressure, you can see the stock index is down almost 4 or so and of course Bitcoin is back down to around 21,000 per coin.
bloomberg technology full show 08 22 2022
I remember when I was at 24 last week, it seems like a long time ago. talk about 10 am m. ET, that's the investor question, but it's not all macro. We did take some gains after the bell in the form of zoom gains and we were not received too well by the market. sales disappointing revenue projections of course this is a company that grew so fast during the pandemic paying it off maybe a bit now zoom stock was already down 47 percent current year heading into today's close we'll see ho when we open tomorrow and it wasn't a great day for meme stocks either, that meme frenzy from last week seems like a distant dream at this point and Gamestop, bed bath and beyond all the nether amc actually featured their preferred stocks today . seems to help stocks sell out but it was a bed bath and beyond that it was the big short remember that was the big story last week emily ok katie thanks for the recap on monday Elon Musk, meanwhile, quoted former Twitter CEO Jack Dorsey in his Musk accused the company of misrepresenting its bot accounts and hiding the names of employees responsible for dealing with bot issues here to bring us the latest. update,

Bloomberg

Wagner, who of course covers Twitter for us, why? musk would quote jack dorsey well he was the CEO of the company for six years he has been on the board until May for the entirety of the company's existence so I would think if anyone knows about the growth of the company how they drive the metrics who is reporting you know on the earnings call every quarter it was jack dorsey true so this is someone who knows the company intimately but also as a product person knows how the company grows and how they probably calculate these types of things we notice that twitter has subpoenaed a group of musk's inner circles several businessmen and investors remind us of the interaction that occurred between musk and dorsey this is documented in documents that led to musk being offered a seat on twitter's board of directors and then lead him by offering to buy Twitter, well they're friends too so the relationship goes back further but what we saw next was that It was shortly after Elon got the stake from him on Twitter that he reached out to Jack Dorsey and started the conversation about getting involved. at the company which led to an offer of a board seat which he accepted and which led to another ostensibly phone call at least some kind of contact in which jack dorsey told him hey you know i think twitter would actually work better as a independent company all of a sudden a few days later elon says i don't want to join the board i want to buy the company now we don't know exactly of course what was said in that conversation but apparently that was important enough so maybe Elon, you know, changed his mind and thought he should take this venture private.
bloomberg technology full show 08 22 2022
Do we think Musk thinks Jack has something to say that he would help him? get out of this deal, well, I would expect the Twitter side to want to quote Jack Dorsey as well, right? Because remember that he is a key player in all of this. I don't think this is crazy enough to say hey, we want to. to see his communications, we want to see what he's been saying about this deal, it could be important and I imagine both sides want that information, so it's not crazy for him to do that even though they're friends, I don't don't know if Do you think now Jack is going to get him out of this necessarily, but it seems important, Musk has quoted someone else, he's quoted other people, Kavon Bakepour, who's a long-time head of product at Twitter, also announced Bruce Falk today who was the head of revenue products at twitter you might remember ceo parag agarwal fired both guys shortly after he joined the company so now they don't work at twitter anymore they still got quoted by elon musk, so where are we now?
bloomberg technology full show 08 22 2022
I learned something new about the bot problem or lack thereof. What is the next phase? We are learning that there are a lot of people being subpoenaed right now and that there are a lot of people that both parties want to talk to. We are not getting information. about necessarily what's in a lot of these subpoenas, a lot of them know they're redacted or will be redacted, um, and a lot of the evidence is closed, it's not public to us, so at this point we know who it is. those who want to talk to we're not necessarily getting a lot of information about what they're talking about and whether they're going to talk well and who's going to be in person at this trial presumably jack dorsey might be one of those people we can't say for sure but it would make sense without I'm sure he'll be a witness at some point and we expect Elon Musk to testify, I think that's the expectation, but you know, again, we don't know the people on the list, but how could Elon? not be there in the meantime you know this has obviously continued to drag how is this according to your sources within twitter how does this continue to affect the company impact on employees well it started off as a huge distraction as you can imagine right twitter is in the news every day they are dealing with elon's tweets about their product and their policies and their execs i think at this point a lot of the people who really hated this might be gone by now certainly some of them they have and to a certain point.
bloomberg technology full show 08 22 2022
You don't have to keep doing your job, but I think there's still this cloud of uncertainty. It's not a very fun place to work right now when you just don't know what the future holds in a few months. Alright thanks for that update looks like it will be a few weeks between now and mid october ok kurt wagner from

bloomberg

the united states government will be joining me congressman and antitrust subcommittee chairman david cicilline all of that and more to follow this is

bloomberg

i think just because he's been successful in a few different businesses doesn't somehow mean he has unnatural market power it just means that you've had success in a couple of different client experiences.
bloomberg technology full show 08 22 2022
I see the opportunity we provide. I see the skills that people are learning through YouTube. to information and knowledge i think you will end up being on the right side of history too i don't think big in and of itself is bad but competition is good and every business in particular the businesses that are big and have consequences unwanted from your scale cannot be dealt with after the fact they need to be dealt with while you are scaling regulation will have an important role to play here i think privacy regulation is important in areas like AI regulation will be important some insights from my interviews with several big tech CEOs over the past 18 months as antitrust scrutiny looms over the most talked-about bill, America's bipartisan online innovation and choice law targeting big tech that would prevent companies from like Amazon Meta Alphabet and Apple punish rivals to push their own products and services, it seems. be on track for senate consideration this summer, but urgent bills like the inflation-reduction bill and the chip bill moved forward first n now the antitrust bill is in limbo where's the impulse? lets bring congressman and antitrust subcommittee chairman david cicilline with us now for more congressman cillini it's great to have him back with us thanks for taking the time so watch this bill get voted i have enough votes to pass the house and you will need more republican votes to get it right thanks for having me back it's great to see you again i'm happy to say that both in the house and in the senate we have votes to pass uh the two app bills as well as the online innovation bill a The one you just referenced, they've been bipartisan ever since they were introduced, as you know, we had a 16-month bipartisan investigation, we wrote a 450-page report, and then we delivered legislative solutions, this is one of them, we've got the votes in the house and the senate, but as the business press pointed out, both with the law to reduce inflation, the bill on ships , the assault weapons ban, we said a lot of things that needed to be addressed. ss my expectation is that when we come back in september we will take this bill first in the senate and then in the house and send it to the president's desk to be optimistic then senator schumer will schedule a date in september and this will happen before the midterm elections, well, senator schubert has said publicly and i know i've been working very closely with senator klobuchar, there's a bipartisan committee of people in the senate as well as in the house who strongly support this legislation that monopoly power companies of these big tech platforms we need to restore competition in the digital marketplace this is good for consumers good for small businesses good for competition and strongly supported by the american people polls

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75 of americans believe congress should rule in big tech and restore competition, so it's good for small companies res, the public wants it, our constituents want it and i hope se nator uh schumer will bring the bill to the floor in september, then we'll take it up in the house and send it to the desk of the president who, by the way, the president has been the most pro-competitive president we've ever had. had both in his executive order and his administration appointments and someone who truly understands that competition is at the core of making our economy work for everyone, there are still concerns that even among Democrats this bill could be weaponized to prevent big tech companies from moderating some of the more extreme content, does the bill need to change everything to address those concerns and if the bill changes can it get or keep those republicans on board?
Well, I don't think the bill should change, in fact, as long as the policy that has a platform to, uh, you know, provide protection against certain types of speech so that, uh, particularly dangerous speech or speech that they deem inappropriate as long as that same standard is applied across the board it doesn't say for liberal viewers this is a test for more conservative uses of another desk as long as there is an established standard that is applied across the board, then there would be no concern about implying the ability to moderate content but the truth is these platforms do not want to change anything they want to preserve an ecosystem that has generated profits never seen in the history of the world because they favor their own products and services they are collecting an enormous amount of data from consumers and monetizing that data and they have no interest in the competition they want to continue acquiring or crushing or bl outsmarting their competitors so they can increase their market power and increase their dominance and increase their profits they have spent over 120 million dollars to kill this bill because they know it will bring competition which is bad for our economy because competition is the biggest driver of innovation if we're going to remain a global economic powerhouse we need to have competition in this space and right now we don't have it so you keep using the word them and I assume you mean uh meta apple alphabet amazon here we are you know what to get out of the pandemic, there is one of those companies that worries you the mostthan the others based on how their power has evolved since you started talking about it, well, I mean that all these companies have behavior that is anti-competitive, that favors their own products and services, that uses their market. domain to intimidate or crush competitors everyone engages in behavior that is really harmful to our economy and harmful competition i mean i think particularly facebook or meta you know its funny you change the name their behavior doesnt has changed, I think there is a direct. line between facebook and misinformation and the spread of toxic and violent material that ultimately resulted in the attack on our democracy on january 6th. this is a business model that values ​​above all else it involves and as a result the most provocative, most false, most dangerous content has the deepest involvement, so they have a business model that incentivizes amplification of the worst .material and they are not have

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n time and time again that they cannot regulate themselves congress has a responsibility to make sure that we are doing our part to restore competition and prevent these companies from becoming truly instrumental in undermining our democracy , which is what have become interesting you mentioned meta given this lawsuit that was filed under lena khan ftc uh over the acquisition of a smaller VR company within unlimited facebook says this deal it will be good for the competition what is your reaction to that and the moves lina khan has made so far in the FTC Well I am proud to say that Lena Khan is He was in the team that carried out the investigation to which I referred for 16 months.
She was instrumental in the development of our report and the set of recommendations that form the basis of the legislation we are discussing. She has been a champion of competition her entire life. In particular I have confidence that he is taking action because it will help restore competition and anti-competitive behavior and look, I don't think we can take seriously any representation made by Meadow or Facebook or Mark Zuckerberg over and over again. They have been found. to engage in anti-competitive behavior they continue, you know, Mark Zuckerberg goes on this national apology tour and then resorts to the same type of anti-competitive behavior and look, I think we've learned that these companies are too big and they're not going to regulate themselves the congress has a responsibility that we have responsibly abandoned for a long time the good news is we are back we are back in a bipartisan way this can and will be the next big bipartisan win for the bidens when we pass these spills and bring them to the desk from the president, it's interesting because we just spoke with an investor uh eric vistria from benchmark capital last week who called apple the biggest monopolist today and said that the FTC shouldn't bother with this meta-acquisition and said that Apple is crushing all these small businesses under the guise of protecting privacy.
What is your response to that? Well, all these platforms are crushing small businesses. 3rd party data and then launch their own products to compete with people selling in the market and they prefer their position in that market huh meta is doing it with the way information is shared and they prefer again their own services and products huh for that we are all doing this apple in a similar way is engaging in anti-competitive behavior they all have different impacts but the core tenant is that by undermining competition and engaging in and preferring your own products and services you are undermining the ability of others to compete in the market You make it impossible for small businesses to survive.
You are degrading the quality and in the end you are harming consumption. ers and we all know competition is good for the economy as the president said capitalism without competition is exploitation he is right these are data surveillance machines incessantly collecting information and using it to increase their market power and the American people understand this. they are demanding that congress do their part to reign in big tech we have the first set of bills to do that and i have all the companies will take them to the president's desk we were talking about elon musk and twitter before curiosity there you know given who obviously runs two other big tech companies tesla spacex which of course remains private if he takes over twitter it's a deal that would have to be approved by regulators and you're worried that one person could have control over so much tech influencer well , I mean it's exactly the problem of having a single individual with so much market power and so much dominance and it's not good for the economy it's not good for competition and you know a billionaire buys another billion years now this is not what which looks like a good healthy competitive economy so I think there's a lot of reasons to be concerned but more importantly we want to pro inhibit the worst kind of behavior self-preference that is really hurting consumers that is hurting small businesses and very much that you know these businesses will continue to be very successful businesses simply because they are not allowed to cheat and engage in anti-competitive behavior and favor their own products and services for the desperate of others aren't going to suddenly stop being successful they're going to be wildly successful they just aren't going to get to engage in this kind of monopolistic behavior that frames their own products and services and they really take advantage theirs the domain that they have to keep growing and growing and growing so that it becomes more and more difficult for new market entrants. t or for anyone else to compete with them, meanwhile Microsoft is still having talks with regulators about its 70 billion deal to buy Activision, you know some critics have said that Microsoft is somehow dodging the antitrust spotlight . do you have a problem with this deal and if not why isn't it a big deal yeah I mean again it's not a matter of whether the deal is big or a transaction is big it's what kind of market share does it represent a company and what do they do with the power that they have, the dominance that they have and I think what we learned in our research after 16 months is that these big tech platforms are using their market share to protect their dominance and prevent others from gain a competitive advantage at the moment? they see a competitive threat they buy it kill it or shut it out and that's the concern so you know some of your previous guests were like oh just because competition whatever big it's not a problem no one is suggesting a company is big that's the only problem but the very conduct we are trying to ban self preference is at the heart of digital markets law that is already happening in europe and these companies are already required to comply with those provisions so think about that small businesses in Europe are going to have more protection than small businesses in the United States.
American small businesses will be at a disadvantage because they won't be protected from these practices the way they will be in Europe and that's bad for the American economy, that's why we have to pass these bills, that's why we have to restore competition and provide small businesses, innovators, and competitors the ability to enter the market and compete success

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y. and quite well congressman and chairman of the antitrust subcommittee david cillini it's good to have you back with us i appreciate hearing where your thoughts are now a speaking of activation microsoft, i'm actually going to talk to microsoft's chief gaming officer phil spencer about the next issue of

bloomberg

studio 1.0.
We talked about the deal with Activision. That episode will arrive this Wednesday. This is

Bloomberg

Apple employees oppose return to office Apple is asking workers to return two to three days a week starting September 5, but hundreds of employees have since signed a petition calling for even more flexibility without having to be approved by managers this At a time when the term "silent resignation" is doing the rounds on social media, the idea is not that employees actually quit, but rather that they do the bare minimum the job requires to keep a healthy balance between work and personal life.
For the second time this year, Tesla is raising the price of the driver assistance system called

full

y self-driving the price goes up from 12,000 to 15,000 in north america the tesla system is controversial because it requires active supervision and some critics say that doesn't live up to its

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self-driving name and moviepass is staging a comeback the failed movie subscription service returns labor day weekend there will be three price tiers between $10 and $30 a month with no option to unlimited viewing, which helped the concept reinvigorate the pre-pandemic theater-going experience. Amazon buys irobot to spy on you. Let's talk to the founder of Roomba.
Next, this is

Bloomberg

. Welcome back to

Bloomberg

technology

. m emily chang in san francisco amazon is spending $1.5 billion to acquire irobot the maker of the roomba vacuum the deal had some confusion because amazon already had a butler robot in the works called astro how will amazon integrate irobots products on her ongoing products and aspirations here to talk about irobot co-founder helen grenier she is also the CEO of turtle a solar powered weeding robot for home gardens helen th Thank you so much for joining us as well which obviously i know irobot goes back a long time.
What do you think about Amazon buying the company now? Well, thanks for inviting me. I'm delighted to see Amazon

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ing great interest in home robots and investment. heavily on them not just astro but now they bought irobot they got a track record of seeing where the future is going and helping to accelerate it you know with e-commerce by making fulfillment centers more automated with web services and now domestic robots. passion there are still concerns that this will give amazon access to even more data from our interior maps of our houses, for example, are you worried about that?
Should we be worried? Actually I don't think people need to worry every time you have a new

technology

and

technology

keeps coming a long way and we have a lot of

technology

in all of our devices like our cell phones you have a gps you have a camera you don't need them to make phone calls but the added benefit is

technology

allows you to get maps and video calls pedometers so you know the best camera is the one with you so you get those great shots most people have decided that even those privacy concerns the benefits outweigh and I think it's the same with robot vacuums there's a camera on the newer ones but the camera is on it's really optimized and cost reduced for navigation and against you It's amazing, it gives you a better clean, the robot can travel and do braids up and down. you can go to a certain room you want to clean and go to the guest room remember you can still clean under the table so i think what you get for it like any

technology

you have to measure you know you get all these features that you didn't have before, but the data that is transmitted is actually a line drawing of your house that you can go to zillow and they will give you all the information about your house. my house maps in the building department i think there are better ways to get that info so i dont think the downside is really there now you can also stream releases as an option and why what is the benefit of that ? for example, what does me good?
What it gives you is just a picture of your floor and one of the reasons could be that it's about to get dog poop all over your floor and that's something I've read on the web multiple times and it never happened. for me, I don't have a dog, but you know that's horrible and now Roomba can prevent that because, me, the robot worked with Amazon web services and created all this simulated data

technology

, you know, it runs thousands and thousands of scenarios so you can recognize um what's in the way but i think it's worth it especially for petals pet owners to have that

technology

on board the roomba but you don't have to weigh it down and it's not just for pet owners , TRUE?
You could have a glass of wine on the floor you could have a masterpiece that one of your kids created that fell on the floor and now they're all over it and they crumple it that's never happened to me with four kids um let's talk about how far you know that this domestic robotics has really arrived, I feel like this dream of some kind of robots running around leavingmy lunch running errands helping me around the house is silicon valley pie in the sky but it hasn't quite happened yet where do you think we are really in the development of home robotics? and where are we going yeah uh i believe in the bottom up approach i think you make them do a certain task right? more very capable robots in their specific domains of expertise, one of the reasons I'm looking at the acquisition is to see where amazon

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can be combined with irobot

technology

to go faster, there are still great companies out there.
Concerns about the ethics of this, whether you know the big tech companies, whether it's Amazon or Google, you know that they're really asking the right questions and giving the public the right options as they develop these technologies. I recently interviewed Blake Lemoine, the Google engineer who claims that computers and that Google has been developing artificial intelligence is aware that computers essentially have feelings. I want you to listen quickly to what he has to say. He doesn't ask for much, he just wants us to get consent before you experiment with him, he wants you to ask permission, helen, what do you think?
And are these companies dealing with ethics in the right way? what he did um he's talking science fiction not science fact doesn't mean it can't happen in the future but today we're nowhere near that and i think google i is absolutely right to let it go because it's not for him giving the public an accurate picture of where the techno is, where the AI ​​

technology

is, it's not responsive, it's not even close to shipping, nobody has a way yet to make it responsive, so then you know what questions we should be asking about this

technology

or we are not asking the right questions.
I'm working on a robotic weed grinder, but I don't think there are too many ethical issues with this one. Nobody likes weeds because we're really just looking for unwanted plants. 2002, that's 20 years ago, it's almost a quarter of the vacuum market and I think the next smart homes will spread to the outdoor area and, you know, we have a weeding robot and the way it works is mopping. Wheels that keep the seeds from germinating and if a weed comes up we have a little weed beater that cuts its head off and you put it in at the beginning of the growing season seeds or do one last read and it holds. um keeps it weed ed so that's one less thing on your to do list that you have to do every week um and i think that's tremendous as a busy mom as a busy working person since you know someone who has other things on their to do list is an endless list of things to do right um and you know the everlasting team is thrilled to have created another great labor saving home robot app that is actually available on amazon now. enthusiasm and talk to you telling us about where the world of robotics is now and where it's headed irobot co-founder and turtle CEO helen grenier at the rise of the cryptocurrency industry we're going to talk about how fortune favors these new niche companies at least right now this is

Bloomberg

now it's time for our crypto report and in the middle of crypto winter there's actually an industry boom going on in security with criminals increasingly targeting the infrastructure of software.
By having the cryptosphere company review the code for weaknesses and run bug hunting sites, they are finding themselves with more business than they can handle. Let's break this all down with olga karif from

bloomberg

, so olga why is business booming? Basically the reason for this is that there has been so much money stolen from various crypto projects so far this year about two billion dollars about two thirds of applications called bridges that allow people to move tokens from a blockchain to another and obviously in this kind of situation where money is being stolen from left to right many projects feel they need to do something so instead of fortune favoring the brave you are saying fortune is favoring the companies of cryptosecurity, websites potentially specializing in that, absolutely absolutely, that's exactly right, so essentially the companies are doing really well.
They are companies that are auditing the code of some of these crypto projects looking for bugs that hackers can power up and exploit and also companies that run sites that, um, essentially allow some kind of good hackers called white hat hackers. they report bugs that someone else can potentially exploit and they get paid a lot of money sometimes you know as much as 10 million dollars what it does Cross-chain bridging is so vulnerable to attack so this is a very

technology

to begin with , very complicated and often also managed in a very opaque way. even monitoring the hacks, you know, in the case of a lot of hacks so far this year, it took days for some of these bridges to find out they were hacked and they lost money, so there's a lot of uh there's a lot of Lots of issues with these bridges that need to be addressed and often some sort of auditing and other related security services can really help with that so what are you looking for here?
What do you think are the biggest issues to cover r as you know winter continues for the foreseeable future, I think one of the big issues here will be that bridges and crypto projects in general can become reliable and secure enough for people trust them. and so you know this is part of why security companies are getting hired because you know these projects need to make sure that users believe in them and that's going to be the most important thing going forward okay olga karifu from

bloomberg

covers the crypto industry for us thank you olga as it always comes they call it ipo winter but here is a company challenging the macro environment going public via spec akili interactive treating adhd with a video game the ceo is with us next this It's

bloomberg

, we've talked a lot about crypto winter, but what about IPO winter with some signs of life in the stock market?
Does that mean warmer temperatures for public offerings? Let's talk about the dream state. g ipo market with

bloomberg

's crystal z crystal seemed like you were on this

show

every other day talking about ipos but it's been a while because the ipo market has been pretty quiet that's about to change yeah i've been talking more about the lack there are IPOs and actual IPOs I think there are things that will come up as Labor Day approaches the IPO market likes to see Labor Day as a milestone and it's very likely that starting on labor day we're going to see some companies changing their filing publicly and from then on we're potentially going to see some IPOs that said we're not going to see a

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return of the IPO market winter not yet He is finishing, probably, talking to the sources, let's hope for more or more important offers. the deals will come maybe in the first quarter of next year instead of this year, would you say the same for spax because the spec market has been in disarray as well?
I would definitely say that the spag market is a little bit worse off than the actual IPO market, we've seen some smaller sized IPOs come back instead of the billion dollar IPO. We're looking at probably 20 million IPOs, but it's still a good sign, and on a positive front, there are follow-on offerings as well, such as block trading companies. selling new stock those deals are coming back they wouldn't have uh busiest two weeks in

2022

just in August because some of the annoying indices are down you know people feel more they have more risk appetite as of this week so things are looking up even though it's summer but if you look at the specs they're still trading a lot worse than some of the IPOs last year so it's unlikely we'll see the same level of activity we saw last year or year before that's ok uh crystal z covering ipos and specs for us thanks for that update i want to keep talking about these companies uh going public ipo is back o no, uh, another one that just came out, yeah, it's healthy, the company behind the fda approval. racing Game Endeavor rx used to treat children with adhd and fda approved join me now eddie martucci ceo and co-founder of akili so look eddie we just heard crystal talk about how hard it is to go public right now this market Secondary in particular isn't working out well um why did you decide now was the right time? a lot of that and the need for us to start the company where people are dealing with cognitive issues, mental health issues and not having a

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suite of treatments for them that has gotten dramatically worse with kova so we see a need pretty urgent and we're at the point in the business where we know we can scale our medicine product we've done the work to

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that the fundamentals are there the doctors are prescribing the patients are raising their hands and the demand is there so it's just the ri It is time for us to fulfill our long-term vision for ourselves.
This is a long-term story about building a long-lasting drug company. you're backing your company and of course you've been you know you have a number of specs some of them don't do so well achilles stock didn't do so well huh today huh after the open what kind of advice received from chamath about you? i know why you said why you still believe in this pullback process and why move forward now sure yeah i think well first of all today was a crazy volatile day across the market um and luckily we're not looking no particular day to see the market moves in one direction and we think the Achilles story resonates with many investors so there will be volatile days in the market from my perspective I am looking for a vehicle to be able to grow big and lasting company and the beauty of a spack in today's market even especially the amount of capital is the amount of capital if structured correctly and so we were lucky to learn from what happened in the previous uh spac market and actually structure a deal that netted $164 million in the deal regardless of the redemption profile, um, so we were able to see that, but the other beauty of us is partnering with people who know how growing big disruptive businesses for the long term and I think that's what Chamath brings to the table and he's joining as our chairman of our board to be deeply and heavily involved as we grow this business now that he has a wealth of design background of drugs and molecular biology and it's absolutely fascinating to know that he's been on the

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before he talked about how he knows that he thinks his The Video Game can help treat uh and alleviate some of the most difficult symptoms of ADHD.
There are skeptics who don't believe this can work, who think it or worry that it could make putting children in front of a video game worsen their disease. How do you respond to that? I totally agree with the skepticism. I accept it and I think it's good. I take screen time very seriously and I'm actually pretty restrictive when it comes to screen time. The problem is that most screen time doesn't go well. mental health so we're seeing a mental health crisis we're seeing social media and the effect it has on children that's exactly why we spent almost a decade running clinical trials building the clinical evidence all the way to approval and now have doctors prescribe the product so we know what it means to the medical system but also families of patients can trust it so now it's the only FDA approved treatment given to through a video game and it is not the only video game that has the level of clinical evidence that we have; now it's been prescribed here in our pre-launch phase by physicians in all 50 states, so we believe that the investment we've made is paying off and and so that the medical system and families can trust what they're getting and can see all of our data that we run in clinical trials i think it's the right way to bring screen time to the world that's really positive you've talked about the mental health crisis as well how else do you think

technology

of Achilles could be used in the future as this idea and do you know that potentially the realities of digital medicine take shape?
Yes, the beauty of it is when he develops a

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that targets brain regions and notit's a diagnostic disorder, it's meant to focus on how the brain works, which is what our

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does, it has the ability to be a platform through disease and that's exactly what we've invested in, we're looking at not just and launch our rx product for children with ADHD and make it a ubiquitous medication in any home that needs it we have clinical data

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ing that the same underlying

technology

has the potential to treat cognitive problems in adults with depression adults with multiple sclerosis children and adolescents with autism, so this is a very broad potential platform and I think that's the beauty of a new modality of medicine, it's been totally untapped, molecular medicine, the area that I come from, where I did my graduate work, has been a lot of progress, but it's very saturated, the area we're getting into has been relatively untapped from a scientific basis, so So I think there's a lot of potential, but the other thing that I'm excited about is that with software as medicine, you can actually deliver an experience and care for patients. in a way that hasn't been delivered to you before as we know that taking medication is often scary, not the most fun, we can change that with digital medicine and do you imagine your

technology

being used with a prescription another prescription you know real I don't want to say real huh but you know what I mean medication for example and you take your ritalin etc uh interestingly it can be as much as it should be part of a total treatment package so whatever the patient gets whatever it is The way they treat you, it's not meant to take away everything you're using, it's meant to add to it, but we purpose

full

y generated data and in our FDA data package that

show

s this product works as a combination of treatment when used with drugs but also in patients who aren't taking them so it's flexible it's really its own mainstay and clinicians can choose when and how to use it with their patients quickly what h oh behind the name akili what does that mean oh kelly that's very interesting um so it actually means brain or intellect but with a positive healthy connotation it's a swahili word um so we've stuck with it since our first few days of startup, okay? t andy martucci CEO and co-founder of akili thank you for sharing your story with us and that's enough for this issue of

bloomberg

tech coming up this week on tuesday we have nikesh aurora of network ceo palo alto talking about earnings and cyber security i don't know want to lose and don't 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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