BNN - Friday, May 24, 2024 - 01:00 p.m. (ET) - Segment #6

you are growing. You are a richly valued startup. Do you go in the ipo direction? Or do you look at the m&a direction? Where is your head at? Cameron: we do not have much to share yet on ipo. We recently did a secondary for staff. It was one of the most subscribed secondaries in history which was a real vote of confidence from existing investors who wanted to reinvest and brought on high profile new investors. We are happy where we are at the moment and do not want to get acquired by anyone. Ed: cameron adams, chief product officer and one of the cofounders of canva, really appreciate the update. It has been interesting to track your company growth. I want to correct something discussed earlier with max chaffin. We were talking about starship. The test is going to happen as soon june 5 according to spacex. He said starship three had not reached orbital velocity. Actually, in the test from march, it did reach orbital velocity. I want to correct that. We will get back to that launch later in june. Coming up, here is what we will be talking about on "bloomberg technology." a lot of crypto discussion and in the world of startups. Stick with us. Champion Iron offers a rare solution to decarbonize the steel industry. Which represents up to 10% of global emissions. The company recently doubled production capacity at its mine in eastern Canada. It is now investing to produce one of the world's purest iron ore. Enabling green steelmaking without the use of coal. Controlling a large portfolio of high purity iron ore resources. Champion is considering strategic partnerships to further develop the region. Champion Iron. Harvest Equal Weight Global Utilities Enhanced Income etf. The world's top utility companies in one etf, global Utilities and steady monthly income. Harvest ETFs, income happens here. At Pet Valu, we treat your pet like our pet. Well, Georgie, it's time for adult food. And there's a lot of great options to choo... too choose from. They grow up so fast. I know... I do this like ten times a day. We know you care. But if this is all too real for you and your loved ones. Make the call. Because we care too. Home Instead. To us, it's personal. Get more from trusted us Treasuries with hbnd. Canada's first covered call bond etf providing attractive monthly income with the strength and security of U.S. government bonds. Hbnd, more income, every month, from Hamilton ETFs. At the cse, we're always invested in public markets, in business, in growth, in you. Sometimes your work shirt needs to be for more than just work. Like when it needs to be a big soft shoulder to cry on. Which is why Downy does more to make clothes softer, fresher and better. Downy Breathe life into your laundry. Ed: it is time for talking tech. Source code capital is raising one of china's largest B.C. fund with a target of $300 million according to sources who say the goal is per luminary and could change. Source code capital was one of bytedance's earliest backers. Tiktok is making it easier for content creators to make money. Although unofficially announced, users have noticed the threshold to drop the affiliate program dropped from 5000 to just 1000 followers. It promotes products and collects commissions on sales per delayed move could bring in users and bolster opposition to U.S. law that would force bytedance to sell the app or face being banned. Openai is releasing past employee from a non-disparagement clause that tied together exit contracts and equity awards. Workers raised concerns after a report last week that would allow openai to call back stock if employees spoke out against

the company. Openai issued an apology for the contract and said it would remove the language from exit paperwork going forward. Alpha back and met have held discussions with major hollywood studios about distancing content for use in the ai generation software according to sources. Let's bring in lucas shaw who leads our screen time coverage and broke the story. That is interesting. These are sizable deals we are talking about. Who is involved in the conversation? >> There are conversations happening between anyone with a big ai video model and hollywood companies, much as you are seeing conversations between large language models related to text and news organizations, you can expect to see that with film and television studios. The difference is while we have seen some news organizations broker-deals with companies and we have seen lawsuits, and on the music side we have seen dealmaking and lawsuits, the video side is less mature. There are a lot of conversations happening. There are larger business development conversations between companies. You have seen companies show a different willingness with some companies. Ed: I feel it the ai industry is doing laps of hollywood. You reported in march openai were open to having similar conversations. Who has the upper hand? Is it the sellers of content in a position of power? >> It is a subject of some debate. On the one hand, you could argue the people who have the ai models have the upper hand because they tend to believe using a lot of this can be fair use could some believe they have already scraped a lot of information hollywood companies have. On the other hand, there is going to be a big debate over who controls things. There may even be a debate between the studio and the talent. There is some kerfuffle this week involving scarlett johansson and openai. I have seen credible people argue right now the companies have a decent amount of leverage because they have something these companies want and they might as well try to extract the most favorable terms while the ai models are still very nascent and not that powerful. Ed: bloomberg's lucas shaw was another important piece of reporting on screen time. Thank you. Let's go to another big story. Intuit shares slipped by the most in more than a year after the company reported losing one million customers who use the turbotax service for free, stoking concerns about demand for the software. Joining us is brody ford. The problem is a lot of what is on offer you can find somewhere else for free in some cases. >> Yeah. What is so surprising is a big part of intuit's valuation is the idea that when you use it, it is rare to stop using it because you get all of your data in there, it becomes easy, it will import previous years information. I have used turbotax the last couple of years because it is easy. Seeing one million free users leave makes investors say, what is going on at the low end of the market? Part of it is there are other places you can get this. One example is the federal government had a pilot program this year where about 150,000 people used it and they get a similar service for free. Ed: I did something highly unusual this year. I was a turbotax user. I did something no one is doing. I hired and engaged with a human being to do my taxes for me, like the anti-ai play. The point is there are other things intuit does. It is not just turbotax. They are trying to be a one-stop shop. Is that enough to keep them going? >> That was the dynamic we saw in earnings this year. People like touch, assisted methods that in some ways replaces your local tax store. At the high end of the market, they are doing well. From people saying I do not need this c.p.a., I am not doing this, they are the ones who might have turned over to tax

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