Ed plus well hear from reddit cofounder to talk his investments in a. I. And crypto. Are they living up to the hype . Caroline and with the bloomberg tech underway in london, we will hear from executives. But first, lets check in on these markets. Because as guy was just telling us of the previous show, tuesdays are the new monday. Were higher. There is some new music shifting around, what is of course the torrid nature of the middle east and whether or not we will see conflict escalate. For now, people feeling it will be contained and it does mean that we get a lift in the big tech stocks. The u. S. Trending yield coming down a little bit. But still showing that easing of tension and anxiety. New york crude sinking at 83 level. And lets move on to that key risk asset which has been doing rather well. Crypto, bitcoin up. Were now 33,000 we eclipsed 35,000. Really helping those crypto stocks. And this is once again, not so much about a haven but more about a hope for ets. Ed the hefty lifting. And after the bell, we get the giants. Microsoft and alphabet. Its going to be interesting the cloud division. There always is. But there will always be intent interest in Artificial Intelligence. We ask how is that showing up in sales . Are they actually making any money from it . Top of mind is whats top of the list. Spotify for its biggest jump since january 31, trading near its highest level. Top line beat, bottom line beat. Lets get straight to the details with bloombergs ashley common. What is in the earnings playlist for spotify . What were the top numbers . Yeah, so the big headline item is that spotify turned the profit at 32 million euro and that was a surprise for analysts who were expecting a significant loss. Caroline its an Inflection Point what. Has been the drivers of growth here . For sure. So over the past year, weve seen significant cost reductions whether it be looking to lease real estate that they previously rented, calling back on their podcast efforts. All of that plus in july, they initiated their first price hikes on their standard plan in quite a while which were starting to see some of the Revenue Growth from that decision. Ed they kind of did not green light some projects they made cost cut, head count reductions. But the earnings is showing up in a positive way. Ashley totally. Yeah. They are really as their quoteunquote efficient year. Either through a. I. Or through this cost cutting and trying to make sure that theyre delivering on the businesses that theyre pursuing. Caroline wow. We see total active views, more than half a billion. Its clear that were seeing some well, key year of efficient city starting to benefit in terms of growth too. Thank you very much breaking down the spotify numbers and the rally that we saw in the shares. And that sets us up for why there is such optimism that is set to report after the bell. Microsoft alphabet for what we can expect from microsoft first, and are we expecting key Revenue Growth here as well . Yeah, the number really to catch for is the cloud revenue. Its a slight deceleration from last quarter but guidance for next quarter is going to be really critical can. In the software world, microsoft is the biggest player in a. I. Or anything generating a. I. Right now. Thats where our eyes are going to be when they talk about guidance for next quarter. Ed the battleground that i love to have track is the height of scale cloud. As the top line growth forecast for around 27 , i know were so excited about Artificial Intelligence. We genuinely are, but ultimately, how much do you focus on the bread and butter business . Right now the bread and butter business is not going to activate the way the cloud should thats why we are trying to figure out if customers are still in the cost cutting mode or are they starting to invest . That data point is the single most important thing for companies because unless that happens, youre not going to see a recovery in a lot of those valuations that have gotten beaten up over the last couple of quarters. Caroline what about spending in the moment . How much are they willing to invest . Theyve been investing in open a. I. The investment part, i am not concerned about whether i think its going remain strong for all cloud providers because the backlog or the longterm orders are still there. People need to invest and move away from onpremise infrastructure. But from my side, i think its going to continue for many years to come. Ed i was being a bit sassy about cloud and Artificial Intelligence. Get it . Sassy . Anyway, thank you very much lets get googles results. Caroline oh, boy. Ed i know, caroline expect hard pivot. Googles after the bell. Who else is here . Mandy. Its going to be a story of how the ad business has done. You talked about this bread and butter business for microsoft. Is that what Bloomberg Intelligence look for . Yeah, and to me, you know, the bogey for youtube is quite low when you think about search, growing at 9 and uber at 10 youtube at 10 . And meta is expect odd grow at 20 . And the real comparison is meta reels is a 10 billion business. They have three exit over the last 12 months. Investors want to know whats going won youtube and its going to drive that top line growth. And on the cloud side, the good thing with google cloud is they dont have a legacy business where, you know, google cloud is going to cannibalize the business. And i think if they give any details around the licensing of their models, that will be quite interesting. Caroline there was a lot of handwringing about well, the competitive threat that pay be coming from bing finally. Have they managed to shake off any anxiety that search is going to be upended here . Search is one business that has still the strongest mode and granted, they got trafficking, the 100 million users but when you electric the ad revenue, i dont think its going to make a dent for now and over time, look, google has the advantage that they have over four billion monthity active viewers with search and even if, you know the volume goes down because they are more large models, they still have the distribution. And so to me, search will continue to grow. And its all about the other drivers that will grow to double digits. Ed as part of this week which is the timing and structure of it. So alphabet reports first and you have meta, snap down the road. And alphabet and google set the tone that make money from ads. Do you expect it to play out this week as well . No, its going to be tough for the smaller players simply because companies are still prudent and they want to focus on the highest r. O. I. And we know the highest is search and meta and instagram and the large social media properties. Snap and pinterest will have easier qualms but in terms of acceleration, its too early to say that we are headed for, you know, a big rebound in ad spending next year. Caroline thank you so much as we look ahead to those big earnings. And a key discussion about a. I. More of that to come from Alexis Ohanian, cofounder of reddit. He just sat down with our own ed ludlow. Listen to it. This is Bloomberg Technology. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Caroline time now were talking tech nvidia developed chips to personal computers. Inslid gentleman plans to make cpus with gpus. It makes Similar Technology for p. C. s. And rebellion is hoping to raise hundreds of millions in south korea. Rebellions is more of several players trying to capitalize the rapid appeal. And a group of bipartisan senators will discuss how to regulate the a. I. Led by leader chuck schumer. And indeed the billionaire is expected to attend. It included appearances from elon musk, for example. Ed lets stick with the Artificial Intelligence conversation. Earlier today, i caught up with Alexis Ohanian the cofounder of reddit and founder of 776. How hes thought about the hype around a. I. This year. Have a listen. Alexi theres a lot of hype right now. Ive been investigating this space when it was narrow companies. So this is really now a big breakthrough, generalized a. I. Is a giant buzzword but there is some real special truth there. And were looking for companies that are using this technology to enhance the user experience. Its as simple as that and were seeing it across the portfolio from a. I. Produced dubbing to sports Media Management companies its not about just the buzzword its how you are improving users lives. Ed the examples of score plan, you split it maybe into a tool an a. I. Tool and then an existing Technology Platform which is kind of improved or added to using a. I. Explain why you invested in them. Alexi for sure. I know how important Media Management is. And this process of capturing the clips the photos of everything happening on the pitch or in the stands and then, you know, getting those out to the athletes that is a ton of work. And softwares can make that happen but now you layer in a. I. , it does it 10 times faster. And so, all of that stuff can now be out mated away and of smaller teams can get far more done. And its not reinventing a whole new technology, its leveling up existing software that already has deep relationships with customers. So there are going to be these types of companies that have strong moats and lockin that are going to win. Theres going to be big winners in this space as well. You know, i use it to tell bedtime stories my daughter. So youre seeing this very generalized, you know, approach from thats going to solve a lot of problems for people and at least right now, strong Business Needs and, you know, offering it any other subscription as service business. Ed if you do bug sam, i reported last week that theres a tender offer underway and its a pretty big blocks of shares on the secondaries market. Alexis yes. Ed that value open a. I. 86, 90 billion. More than 100 billion in some of the perspectives ive seen. Is that a way for you to get in . Alexis im such an early infer, i want to be there at the point of inception. At this stage, i still think theres value but its not its above my pay grade. I enjoy being super early and right. But, you know, its still its going to continue to surprise us what these technologies are able do. And i do think the sky is the limit. And ive known sam back in 2005. And one thing he has never lacked is ambition. And so, if theres anyone who can turn this into, you know, what all the hype is about, it would be him. Ed so a big emphasis there on Artificial Intelligence. Alexis ohanian, 776, founder, cofounder of reddit. What was so interesting was alex just came back from a short break. He just had so much to say about so many Different Things we had to put the full interview on bloomberg. Com and you can go and check it out. Were talking about his investments in bitcoin, other spaces hes invested in, what he thinks on reddit. It was quite a way to start a tuesday morning. Caroline yeah. And also enhancing paternity leave and thats just where hes been celebrating the second childbirth. But meanwhile, like you just said, hes really has been somewhat associated with web three. Because bitcoin is on a bit of a team. Over the last five days, up 18 . It hit about 35,000. We will discuss why in a moment. This is Bloomberg Technology. I did have hearing aids from another company. I was just frustrated. I almost gave up. With miracleear its all about service. Theyre personable. Theyre friendly. Im very happy with them. We provide you with a free lifetime of aftercare. Meaning free checkups, cleanings, and adjustments. I see someone new. Someone happy. Its really made a difference. Hear the world better during our limited time sounds of autumn event. Call 1800miracle to test drive our hearing aids risk free. I have been in crypto for over a decade. And none of them faze me. Theyre all healthy because they sort of clear out the tourists and the grifters. And every sector in every industry. And i think here, were seeing a response to my guess, a sort of broader macro and global uncertainty and whats wild is i know for some viewers, it may seem a little surprising that people would find safety in a volatile crypto currency like bitcoin but the fact that it is truly decentralized and the fact that it is backed by conviction, you know, to me, bitcoin has never felt really all that different from gold. Caroline its all based on fresh demands. Some of them for resilience and conflict and we think an etf will be signed off soon. Lets talk about it. The etf exposure and the ability to invest. Is that really whats behind this 35,000 pop . It could be. And it absolutely could be. The speculation that thats happening and it also could be the Economic Uncertainty as the previous guest was talking about that is driving people into bitcoin because it is potentially a more stable asset over time. I personally think that the bitcoin price action is the least interesting aspect of bitcoin. And it will have more much profound impact on our daily lives. Ed amy, this is why im so excited to have you on the program. You can see it as bitcoin as a currency and the blockchain technology, what makes it secure, if bitcoin has this up toward trajectory, 35,000 now. Sonny sing was on talking about above 100,000 at some point next year. Does that help the technology become accepted and utilized in societies around the world . Thats absolutely right. Every time we have a bull run, more and more people find out about the technology. Its the price action that gets people drawn in. But once they come into the space, they learn about the technology that really has the potential to reshape the foundation of the internet and return it to its original vision of being a free and fair marketplace for ideas as they say, bear markets are for builders and we have been in a bear market in may of last year. And during that time, a tremendous amount of building has happened and now, i would say that deep end sector of the crypto space is poised to be sort of the breakout hit of this next bull run. Similar to n. F. T. s and stable coins in previous runs. Caroline oh, boy, another acronym. Talk to us Abigail Doolittle it. It feels a it feels more tangible. What is it that youre building, amy . Amy thats right. I like to call them the plumbing of the web. So just as we rely on water flowing from our tap, we rely on these networks that for the things that we do every day. The things that allow us to be on this video called together for you to broadcast your show to the world, things like video transcoding with Networks Like live peer and file Networks Like our weave and file coin. And then also for things like gpu rentals and im sure you know. Gpus have been a really constrained product because of supply issues. And so, builders have had a hard time getting their hands on them to train their a. I. Models and marketplaces are making those available on a rental sort of basis so that they can use them when they need them without having to outlay a tremendous amount of cash to purchase them and really having to help overcome those supply issues. So, these networks are going to return the web to its decentralized shape. What weve seen over the eras of web one, web two and web three is a change from a decentralized structure in the very beginning of the web in web one when everybody ran it on their own computers. And then it became centralized as we enter this big tech era. And web three ed amy, really quick, before we run out of time here very quickly, just on what you said. Is the United States a good place for this dream to become realized as regulatory jurisdiction . Very quick. Amy so our hope is that it will be. Right now, it is very precarious and i think that the industry feels very nervous about what will happen. We have some great champions in the legislature who are helping to move that forward and we wish them the best and hope that they are successful because if not, we do face the really serious danger of losing the Tech Industry here in the u. S. Ed all right, amy james of the web3 working group here, thank you. Were going to talk all things iowa a. I. Hear one of the cofounders on implementing safeguards for the technology. Thats all coming up next. This is Bloomberg Technology. This is Bloomberg Technology. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Caroline welcome back to Bloomberg Technology. Ed it is a big week for earnings. The nasdaq 100 has cut down some of the gain that weve seen. We started tuesday on risk on mode earnings is one of the big stories. After the bell, you have microsoft and alphabet, the parent of google. Wednesday, we get meta. Next week, apple. Those big names have a real impacten the levels. And so thats what were bracing for. So many stories within that caroline, but i think you would agree that this Third Quarter earning season, Artificial Intelligence what is were going to look for. Caroline and how many hundreds of times is it going to be cited . It has been front and center. Right here in london, and we were hearing from jerry kaplan who weighed in on how anthropic has made a commitment to hold itself accountable. Were excited to have started anthropic is we think that there should be a race to the top on safer a. I. , more ethical a. I. And in preparation for the fact that we believe there will be more powerful assistance on the systems on the horizon. The goal is for there to be competition in the direction of safer and more reliable system. So as to sort of make that concrete, we recently made a set of commitments, a responsible scaling policy, responsible scaling commitments about basically standards that will hold well hold ourselves to as we build more powerful systems. So the current systems that