This means that “it” (matter in the universe) sprang into existence when information (“bit”) of the universe was observed. He calls this the “participatory universe”—the idea that the universe adapts to us in the same way that we adapt to the universe, that our very presence makes the universe possible.
More selfrefuting gobbledygook--if he's working froom naturaltistic assumptions. A wholly natural universe cannot observe itself. There could have been no observer present In the Beginning. Further, given that humans are organic mechanical by products of chance plus time, I see no reason to priviiledge "us" with the unique ability to cause existence instead of a plant, animal, or even camera.
And it very obviously begs the question: information has never been observed to author itself. Somewhere up the chain, intelligence had to insert itself into the process. Also, a cause must be sufficient to explain its effect. An unimaginably intelligent and powerful personal observer would have to be present to inject all this information into the universe at the Big Bang and then to observe it into existence. That sounds a lot like God.