WEBVTT - AI Safety and Tech Earnings 0:00:01.800 --> 0:00:07.080 From Marhard where Innovation, money and power Collie in Silicon Valley, NBN. 0:00:07.400 --> 0:00:20.880 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.320 --> 0:00:28.320 I'm Caroline Hyder a Bloomberg's World headquarters in New York, and. 0:00:28.280 --> 0:00:32.360 I'm Ed Ludlow in San Francisco. This is Bloomberg Technology. 0:00:31.880 --> 0:00:35.639 Coming up ed full earnings coverage ahead was rake down 0:00:35.680 --> 0:00:38.280 the results from Qualcom. From Etsy, we push her head 0:00:38.280 --> 0:00:40.000 to the all important Apple out after the bell. 0:00:40.800 --> 0:00:43.760 Plus we dive deep into the world of artificial intelligence 0:00:43.760 --> 0:00:47.159 and talk AI safety, as well as investing with Soundbenture's 0:00:47.159 --> 0:00:49.120 general partner Ashton Kutcher. 0:00:49.520 --> 0:00:53.200 Plus Ali Baba weighing a USIPO for its online commerce business. 0:00:53.520 --> 0:00:56.040 Could that be valued at thirty nine billion dollars? Will 0:00:56.040 --> 0:00:58.400 bring you the latest details this hour, but of course 0:00:58.440 --> 0:01:00.600 we've got so much to discuss, particularly with the world 0:01:00.920 --> 0:01:04.240 of executives coming up right now. And we welcome bron 0:01:04.319 --> 0:01:07.080 Chesky of Airbnb and I'm very peace to say Blue Megs, 0:01:07.120 --> 0:01:09.560 Emily Chang. Emily do take away the conversation. 0:01:09.880 --> 0:01:12.319 Hey there, Brian, thank you so much for joining us. 0:01:12.360 --> 0:01:15.680 Obviously you've got your huge summer release out now, lots 0:01:15.680 --> 0:01:18.160 of different new features and categories. The one I want 0:01:18.200 --> 0:01:21.640 to focus on is rooms, which, as I know, the 0:01:21.680 --> 0:01:25.679 headline here feels a little like Groundhog Day because rooms 0:01:25.680 --> 0:01:26.800 were where you started. 0:01:27.240 --> 0:01:27.880 What do you want? 0:01:28.120 --> 0:01:30.200 What's the real pain point you're trying to solve with 0:01:30.280 --> 0:01:31.160 these new features. 0:01:31.360 --> 0:01:35.680 Well, the primary pain point is that people, once again, 0:01:36.360 --> 0:01:39.400 just like when we started Airbnb in two thousand and eight, 0:01:40.319 --> 0:01:43.080 want an affordable way to travel, and the most one 0:01:43.080 --> 0:01:45.000 of the most affordable ways to travel is to stay 0:01:45.000 --> 0:01:47.960 in a room in someone's house. That's how airbanbe started. 0:01:48.160 --> 0:01:51.240 The average room on Airbnb is only sixty seven dollars 0:01:51.240 --> 0:01:53.279 a night, but we talked to a lot of people 0:01:53.520 --> 0:01:55.800 and a lot of people said they weren't comfortable staying 0:01:55.800 --> 0:01:57.520 in a room in someone's house. Who's the other person 0:01:57.600 --> 0:01:59.520 I'm going to be staying with. So that's why we 0:01:59.560 --> 0:02:02.720 created this new thing called the host Passport. The host 0:02:02.800 --> 0:02:06.560 Passport is basically this really robust profile We verify the 0:02:06.600 --> 0:02:09.040 identity of every host and get you can get to 0:02:09.040 --> 0:02:11.280 know the host before you book. We also have really 0:02:11.280 --> 0:02:13.840 cool privacy features, like we show if the bathroom is 0:02:13.880 --> 0:02:15.840 share a private, and if there's going to be a 0:02:15.840 --> 0:02:17.919 lock in the bedroom door, So this is I think 0:02:17.919 --> 0:02:20.160 what we're trying to do. Additionally, we think this is 0:02:20.200 --> 0:02:23.600 a really good way to experience a local culture. If 0:02:23.639 --> 0:02:25.040 you want to go to a new city for the 0:02:25.080 --> 0:02:27.160 first time, this is a great way because you get 0:02:27.160 --> 0:02:28.919 to step in the shoes as someone who lives there. 0:02:30.200 --> 0:02:33.120 You of course invented Airbnb in the middle of the 0:02:33.200 --> 0:02:35.320 last recession, and here we are on the verge of 0:02:35.360 --> 0:02:38.320 another one, which you know, obviously not good for consumers, 0:02:38.320 --> 0:02:41.079 potentially not good for travel. How much is the economic 0:02:41.200 --> 0:02:43.240 climate impacting. 0:02:42.800 --> 0:02:43.600 This new release. 0:02:44.480 --> 0:02:48.520 It's absolutely impacting what people care about. A year ago, 0:02:48.600 --> 0:02:51.720 what people cared about primarily was flexibility, and so we 0:02:51.800 --> 0:02:54.720 launch air and B categories which allow you to inspire 0:02:54.800 --> 0:02:57.800 you to be able to travel beyond any place you 0:02:57.800 --> 0:03:01.640 can think. Now, I think the equations now people really 0:03:01.680 --> 0:03:04.600 really are focused on affordability more than the even we're 0:03:04.720 --> 0:03:05.320 a year ago. 0:03:06.240 --> 0:03:07.080 That's our roots. 0:03:07.160 --> 0:03:10.200 I mean, our roots are started in affordable travel, being 0:03:10.200 --> 0:03:12.440 on the share space, So this is what we're really 0:03:12.440 --> 0:03:14.960 focused on. We're also just really trying to focus on 0:03:15.000 --> 0:03:18.680 providing a great service. So we've been really obsessed over 0:03:19.080 --> 0:03:21.760 the feedback we're getting from customers. We've been pouring over 0:03:21.880 --> 0:03:24.880 millions of pieces of feedback from customer service. We've been 0:03:24.919 --> 0:03:27.359 talking to guests and hosts, and based on that, we've 0:03:27.360 --> 0:03:30.800 made over fifty core improvements to the service based on 0:03:30.880 --> 0:03:33.800 feedback directly from our community. And so hopefully if people 0:03:33.880 --> 0:03:36.800 use earing the summer, they'll find it's more affordable and 0:03:36.960 --> 0:03:38.160 even better level service. 0:03:38.920 --> 0:03:42.240 You're seeing that with simpler, more affordable monthly stays, you've 0:03:42.240 --> 0:03:46.440 got priority customer service, you've got more transparent and upfront pricing. 0:03:46.480 --> 0:03:48.960 I know you're using AI and machine learning to make 0:03:49.000 --> 0:03:51.120 a lot of this work on the back end. How 0:03:51.160 --> 0:03:53.600 are you thinking about the AI hype cycle and is 0:03:53.600 --> 0:03:55.280 it going to be as big as everyone says it's 0:03:55.280 --> 0:03:57.600 going to be, and what that means for Airbnb. 0:03:58.240 --> 0:04:00.000 It's probably going to be a lot bigger than everyone 0:04:00.000 --> 0:04:01.960 and says it's going to be. In every few years, 0:04:01.960 --> 0:04:05.480 there's new AI hypes, there's new technology hype cycle. But 0:04:05.520 --> 0:04:08.280 the reason why is because there have been technologies that 0:04:08.360 --> 0:04:10.520 have changed the world and change how we all live, 0:04:10.960 --> 0:04:15.120 the Internet, the personal computer revolution, Mobile AI will certainly 0:04:15.120 --> 0:04:17.800 be as big as all of them, maybe bigger than 0:04:17.839 --> 0:04:20.520 all of them combined. And I think this is just 0:04:20.520 --> 0:04:23.640 the very beginning. It's going to play out over a 0:04:23.800 --> 0:04:26.719 long period of time. It's happening quickly. It's going to 0:04:26.800 --> 0:04:28.839 change I think how people travel, it's going to change 0:04:28.839 --> 0:04:30.479 how we learn, It's going to change how we get 0:04:30.480 --> 0:04:32.680 care for. It's going to change a lot of things 0:04:32.760 --> 0:04:35.240 in society. What we're trying to do right now is 0:04:35.320 --> 0:04:37.800 number One, we want to use the tools to make 0:04:37.880 --> 0:04:40.000 everyone to air and be more productive. I don't think 0:04:40.040 --> 0:04:42.560 this will replace people initially as much as will augment 0:04:42.640 --> 0:04:45.320 people and make them more productive. Two, I think it 0:04:45.360 --> 0:04:48.320 can help customer service. We have a very complated customer 0:04:48.360 --> 0:04:50.720 service problem. We have millions of people living together every 0:04:50.800 --> 0:04:53.640 night from different countries. This will help augment our agents 0:04:53.680 --> 0:04:56.800 provide better service faster. And finally, AI can be like 0:04:56.839 --> 0:05:00.160 the ultimate matchmaker. Imagine if your app being almost like 0:05:00.160 --> 0:05:02.160 the ultimate concierge and they can match you whatever you're 0:05:02.160 --> 0:05:05.160 looking for. These are the near term things. Beyond that, 0:05:05.279 --> 0:05:07.760 it's really up to everyone's imagination. What you could do, 0:05:08.000 --> 0:05:09.680 kind of like the computer forty years ago. 0:05:10.080 --> 0:05:13.200 Call just about matching your talent for this new AI 0:05:13.279 --> 0:05:14.719 door and you say you want to be at the vanguard. 0:05:14.760 --> 0:05:16.320 Have you got the right people within the business to 0:05:16.320 --> 0:05:17.200 be building it for you. 0:05:17.600 --> 0:05:20.120 I absolutely think so. I mean, of course we're still hiring. 0:05:20.360 --> 0:05:22.760 If people are really great at this area, we certainly 0:05:22.760 --> 0:05:24.440 want to talk to them, But we have one of 0:05:24.480 --> 0:05:26.400 the we have a great team. I mean, we have 0:05:26.440 --> 0:05:28.280 people that have been working in this area for quite 0:05:28.279 --> 0:05:30.080 a long period of time. And the other thing I 0:05:30.120 --> 0:05:32.560 just want to say is there's many different layers the 0:05:32.560 --> 0:05:35.159 stack of AI. You have Open Ai or Google that 0:05:35.160 --> 0:05:37.160 are working on the base models. And we're not going 0:05:37.240 --> 0:05:39.479 to be a research lab building base models. That's like 0:05:39.480 --> 0:05:42.480 building bridges infrastructure. We'll build the cars on the bridge, 0:05:42.520 --> 0:05:44.800 so to speak, the applications. So what we're going to 0:05:44.839 --> 0:05:47.880 be really good at, I hope is building personalized layers 0:05:47.920 --> 0:05:50.080 on top of AI. We can tune the models and 0:05:50.200 --> 0:05:52.240 ultimately I want airbe to feel like the kind of 0:05:52.279 --> 0:05:55.400 company that it knows you, it understands you, it learns 0:05:55.440 --> 0:05:57.720 about your preferences, and I think that's what we can 0:05:57.800 --> 0:05:58.440 use AI for. 0:05:58.760 --> 0:06:01.080 What's interesting, We've got one of early back is coming on. 0:06:01.120 --> 0:06:03.440 Who's all about AI today? Ashton Kutch Show. 0:06:03.440 --> 0:06:03.800 Oh yeah. 0:06:04.839 --> 0:06:07.880 Also, we're thinking about how it can lead to more productivity, 0:06:07.920 --> 0:06:11.040 more profitability. Go back to your announcements that you're making 0:06:11.120 --> 0:06:14.760 in this economic environment, we are thinking about how you 0:06:14.760 --> 0:06:16.960 can be more profitable. You're saying how you can be 0:06:17.040 --> 0:06:20.920 more affordable, reducing fees. Does that ultimately impact your bottom line? 0:06:20.920 --> 0:06:23.200 In the longer term, I think the AI is going 0:06:23.240 --> 0:06:26.800 to affect everything. AI is going to make people significantly 0:06:26.800 --> 0:06:29.320 more productive. AI is going to be able to also 0:06:29.520 --> 0:06:31.719 allow things to happen that you could never have done 0:06:31.720 --> 0:06:34.479 without that technology. Again, it's a little hard to know 0:06:34.839 --> 0:06:36.560 exactly what it's going to affect. I think it's going 0:06:36.560 --> 0:06:38.720 to reduce the cost of our service. I think it's 0:06:38.720 --> 0:06:41.039 going to make the product significantly more efficient. It's going 0:06:41.120 --> 0:06:44.480 to allow engineers to be at least thirty percent more productive, 0:06:44.480 --> 0:06:47.440 eventually twice as productive. So that is the equivalent of 0:06:47.480 --> 0:06:50.160 reduction at fists costs or a lot more throughput. So 0:06:50.200 --> 0:06:53.000 those are the near term things we'll have. But beyond that, 0:06:53.120 --> 0:06:54.920 I think we're just getting started. I think we're at 0:06:54.960 --> 0:06:57.479 the beginning of something that we're probably many years from now, 0:06:57.760 --> 0:06:59.440 going to look back in this period of time and 0:06:59.480 --> 0:07:02.080 remember alive at this period and being in a seminal 0:07:02.120 --> 0:07:04.159 moment in history. That's what I think we're going to 0:07:04.160 --> 0:07:05.239 think about this period in Ai. 0:07:06.600 --> 0:07:08.640 Brian, You've been hosting guests in your own home for 0:07:08.680 --> 0:07:11.080 the first time and act, yeah, so excited. I got 0:07:11.080 --> 0:07:12.440 to take a peek. You're going to see that on 0:07:12.480 --> 0:07:14.240 my new show. I don't want to give too much away, 0:07:14.280 --> 0:07:17.040 but there were some Cheskey's chips involved. What are you 0:07:17.160 --> 0:07:20.360 learning from, you know, your own experience hosting, and how 0:07:20.400 --> 0:07:23.600 you want to integrate that back into Airbnb. You know, 0:07:23.640 --> 0:07:26.040 given you know what you've been hearing from hosts and guests, 0:07:26.080 --> 0:07:30.840 whether it comes to fees or affordability or privacy. 0:07:31.400 --> 0:07:35.200 I mean, you know, I always feel like companies that 0:07:35.280 --> 0:07:39.400 create great products create them for themselves because then you 0:07:39.440 --> 0:07:42.400 have total empathy. You understand what the data means. And 0:07:42.480 --> 0:07:44.080 I wanted to be a host again now. I was 0:07:44.120 --> 0:07:46.920 one of the first hosts of my roommate fifteen years 0:07:46.920 --> 0:07:50.640 ago in Airbnb, and as I started hosting again, I 0:07:50.680 --> 0:07:52.680 have people my house with me. They stay in the 0:07:52.680 --> 0:07:56.320 guest room, I'm there with them, and it really helped 0:07:56.320 --> 0:07:59.720 me understand Number one, trust and safety is paramount. You know, 0:08:00.080 --> 0:08:03.120 now verify the identity of every guest booking around the 0:08:03.160 --> 0:08:06.280 world on Airbnb. But it also helped me understand that 0:08:06.520 --> 0:08:09.040 we need to make hosting easy, and as we make 0:08:09.080 --> 0:08:11.720 the product easier for hosts, it will become a better 0:08:11.760 --> 0:08:14.080 experience for guests. I'll give you one example. A lot 0:08:14.080 --> 0:08:17.400 of people have complained about fees on Airbnb and host 0:08:17.480 --> 0:08:18.400 charging cleaning fees. 0:08:18.680 --> 0:08:20.480 Well, as I started hosting. 0:08:20.520 --> 0:08:22.920 I noticed that it was kind of complicated to figure 0:08:22.920 --> 0:08:25.120 out how much to charge, and we weren't doing a 0:08:25.120 --> 0:08:27.920 great job coaching hosts about how to provide a great 0:08:28.040 --> 0:08:30.000 value to guest. And as you use the product, you 0:08:30.040 --> 0:08:34.040 start to see these things and posting this actually helped 0:08:34.120 --> 0:08:36.600 lead some of the innovations that we announced yesterday. 0:08:37.080 --> 0:08:40.040 Brad Chesky, we thank you of Airbnb and of course 0:08:40.400 --> 0:08:41.520 our own Emily Chang. 0:08:42.880 --> 0:08:45.599 Let's go to AI. Earlier this week at Milky and 0:08:45.720 --> 0:08:49.559 actor and entrepreneur Ashton Kutcher said that companies not investing 0:08:49.880 --> 0:08:52.560 in AI will go out of business. But does that 0:08:52.640 --> 0:08:56.600 mean that all Way I startups are equally good investments. 0:08:56.640 --> 0:08:59.440 Here's what Cosla Ventures found of in our Cosla told 0:08:59.480 --> 0:09:00.120 us yesterday. 0:09:00.200 --> 0:09:00.720 Have a listen. 0:09:01.440 --> 0:09:06.120 I would say there's many more bad AI startups than 0:09:06.240 --> 0:09:10.240 good startups, and it's very hard to differentiate if you're 0:09:10.280 --> 0:09:13.800 not experienced with AI, so I do think lots of 0:09:13.840 --> 0:09:17.960 bad investments will be made, but overall more money will 0:09:18.000 --> 0:09:20.760 be made than lost, even if ninety percent of the 0:09:20.760 --> 0:09:22.160 startups fail, which they. 0:09:22.000 --> 0:09:26.200 Will sound ventures Ashton Kutscher joins us now for more 0:09:26.679 --> 0:09:28.920 and on his firm recently closing a day I fund 0:09:28.960 --> 0:09:32.360 oversubscribed about two hundred and forty million dollars. It's interesting 0:09:32.360 --> 0:09:35.720 action because you're really focusing on foundational models. That's what 0:09:35.800 --> 0:09:38.600 jumped out at me from the announcement. That's where a 0:09:38.600 --> 0:09:42.400 lot of people are putting their activity. Why so focused there? 0:09:43.120 --> 0:09:45.240 So we have multiple vehicles. 0:09:45.360 --> 0:09:49.280 Our core vehicle will be focusing on the application layer, 0:09:50.679 --> 0:09:53.760 and that's where there's going to be an absolute boom 0:09:53.920 --> 0:09:58.480 of innovation from business models that are being unleashed that 0:09:58.559 --> 0:10:00.160 were never possible before. 0:10:01.040 --> 0:10:02.679 But our core. 0:10:03.200 --> 0:10:07.559 AI fund that we basically we saw in November when 0:10:07.640 --> 0:10:10.839 GPT was launched. We've been investing in AI for the 0:10:10.920 --> 0:10:15.160 last seven years, several companies that are narrow AI companies 0:10:15.200 --> 0:10:19.960 that are application based. But when we saw GBT be launched, 0:10:20.320 --> 0:10:24.640 we realized that this was an absolute breakthrough and these 0:10:24.679 --> 0:10:29.160 foundational models are going to be the underpinning of the 0:10:29.200 --> 0:10:34.040 next absolute transformation for technology. When we first started investing 0:10:34.200 --> 0:10:36.600 in two thousand and eight two thousand and nine, it 0:10:36.679 --> 0:10:40.559 was right around the mobile revolution, and companies that didn't 0:10:41.000 --> 0:10:47.040 didn't embrace that in a forward basis really struggled. But 0:10:47.200 --> 0:10:50.600 it also unleashed extraordinary new business models that never could 0:10:50.640 --> 0:10:53.439 have existed before. When you had a GPS in your pocket, 0:10:53.480 --> 0:10:55.360 when you had a camera in your pocket, when you 0:10:55.400 --> 0:10:57.880 had a radio in your pocket, when you had all 0:10:57.920 --> 0:11:01.760 of that capability in your pocket, unleashed these business models 0:11:02.080 --> 0:11:05.240 that were never possible before. And what's about to happen 0:11:05.720 --> 0:11:09.280 because of these large transform of models that have so 0:11:09.760 --> 0:11:13.920 such extraordinary output, We're going to see innovation of business 0:11:13.920 --> 0:11:17.040 models that were never capable before that are that are 0:11:17.040 --> 0:11:21.520 about to be launched. Yes, and and and and that's 0:11:21.800 --> 0:11:24.680 that that is just going to be an absolute And 0:11:24.800 --> 0:11:27.440 what I said at Milken was that if you were 0:11:27.440 --> 0:11:30.600 a commerce company ten years ago and you didn't embrace 0:11:30.640 --> 0:11:33.680 e commerce, you're probably not in business anymore. 0:11:34.200 --> 0:11:35.400 And I firmly. 0:11:35.080 --> 0:11:37.599 Believe that if you're a company today and you're not 0:11:37.880 --> 0:11:41.520 embracing the changes that are taking place with AI, you're 0:11:41.559 --> 0:11:43.520 going to be behind and you're going to have a 0:11:43.559 --> 0:11:45.520 hard time catching up Ashton. 0:11:45.520 --> 0:11:47.520 I'm really interested in how quickly you moved on this 0:11:47.559 --> 0:11:50.839 thematic fund as well. Who are the LPs and how 0:11:50.880 --> 0:11:52.080 quickly did it come together? 0:11:53.720 --> 0:11:53.840 Uh? 0:11:54.200 --> 0:11:57.120 We we pulled the fund together in about five weeks. 0:11:58.080 --> 0:11:58.360 Wow. 0:11:59.120 --> 0:12:02.560 And we have an extraordinary We have a base of 0:12:02.679 --> 0:12:05.679 LPs that have been with us for years on end. 0:12:06.080 --> 0:12:08.080 So we have about a billion dollars. 0:12:07.800 --> 0:12:11.000 Under management at Sound Ventures and have been working with 0:12:11.120 --> 0:12:13.880 some really extraordinary LPs over the years, and so we 0:12:13.920 --> 0:12:16.720 reached out to them and said, hey, this is happening now. 0:12:17.640 --> 0:12:19.600 These large transformer models a lot of them. You look 0:12:19.640 --> 0:12:22.760 at open Ai, you look at Anthropic, you look at Stability. 0:12:23.040 --> 0:12:25.520 They didn't they didn't start yesterday. They've been around for 0:12:25.520 --> 0:12:27.160 a while. They've been building this. You look at what 0:12:27.240 --> 0:12:30.360 Google has been doing with deep Mind and Barred and 0:12:30.880 --> 0:12:33.520 those those companies have been in development for a while. 0:12:34.000 --> 0:12:36.760 What we've just seen is an extraordinary breakthrough where you 0:12:36.800 --> 0:12:39.920 can take a massive corpus of data and be able 0:12:39.920 --> 0:12:44.280 to index through it and again create statistical, highly likely 0:12:44.320 --> 0:12:49.240 outputs that are beneficial to humans. And these utilities are 0:12:49.320 --> 0:12:54.560 really really valuable. It's it is going to exponentially change. 0:12:54.600 --> 0:12:58.720 I agree with everything that Brian saying before I came on. 0:12:59.240 --> 0:13:02.480 This is going to change business forever, and we need 0:13:02.520 --> 0:13:04.720 to embrace it because right now this AI can be 0:13:04.880 --> 0:13:07.440 used to improve humanity. 0:13:08.880 --> 0:13:09.679 I actually look at. 0:13:09.640 --> 0:13:12.520 It as an equity and an inclusion play, where you know, 0:13:13.120 --> 0:13:18.080 as we commoditize things like legal advice, in medical advice 0:13:18.160 --> 0:13:22.880 and education and personalize those things down to the individual consumer, 0:13:24.120 --> 0:13:26.320 all of a sudden, people that can't get a doctor 0:13:26.360 --> 0:13:28.040 on the phone, or can't get a lawyer on the phone, 0:13:28.080 --> 0:13:30.679 or can't get a pediatrician on the phone, they're going 0:13:30.720 --> 0:13:34.120 to have access to these services and access to these 0:13:34.120 --> 0:13:37.199 services at an affordable price. Yeah, and I think that's 0:13:37.240 --> 0:13:40.400 extraordinary for humanity and extraordinary for all of us. 0:13:40.520 --> 0:13:43.880 It augments you mentioned education there, and I think about 0:13:43.960 --> 0:13:48.679 your exited portfolio company, cheg, which lost about half of 0:13:48.720 --> 0:13:51.040 its market value over the course of the week because 0:13:51.320 --> 0:13:54.280 already chat GPT is upending its own business model. What 0:13:54.320 --> 0:13:57.240 are you doing with your current portfolio, Ashton, to see 0:13:57.280 --> 0:14:00.000 around this corner to ensure that they are augmented rather 0:14:00.120 --> 0:14:01.559 then completely disrupted. 0:14:02.360 --> 0:14:04.360 So that was the very first thing that we did 0:14:04.400 --> 0:14:07.480 before we even thought about putting a vehicle together to 0:14:07.559 --> 0:14:10.079 invest in these things. Is we reached out to every 0:14:10.120 --> 0:14:12.240 one of our portfolio companies and said, how are you 0:14:12.280 --> 0:14:13.520 embracing this technology? 0:14:13.800 --> 0:14:15.760 How are you implementing this technology? 0:14:16.120 --> 0:14:20.680 And I think, I think maybe from my perspective, the 0:14:21.760 --> 0:14:24.800 what happened with CHEG the other day is somewhat short sighted. 0:14:25.440 --> 0:14:28.960 CHEG is implementing GPT four into their product they announced 0:14:29.040 --> 0:14:31.920 check Mate, and and I think a lot of the 0:14:32.040 --> 0:14:34.640 value is going to fall to the incumbents. So if 0:14:34.640 --> 0:14:37.840 you have an extraordinary product, you have consumers and you're 0:14:37.880 --> 0:14:40.880 implementing this, I think there, I think value is going 0:14:40.920 --> 0:14:45.560 to fall to some of those incumbents, and as it should. 0:14:46.200 --> 0:14:49.160 And don't dismiss the fact that a lot of these 0:14:49.160 --> 0:14:53.200 companies have extraordinary data sets that are their own proprietary 0:14:53.280 --> 0:14:56.840 data sets, and they'll tune their own models on top 0:14:56.960 --> 0:15:01.280 of these large transformer models, which will will create unique 0:15:01.800 --> 0:15:03.400 value propositions for consumers. 0:15:03.880 --> 0:15:06.280 Actually, the word that keeps coming up Timing time again 0:15:06.640 --> 0:15:09.920 is hype cycle and being able to see wood for 0:15:09.960 --> 0:15:12.720 the trees, but also being able to understand that this 0:15:12.760 --> 0:15:16.440 isn't kind of like crypto, where yes, there's still ultimate value. 0:15:16.440 --> 0:15:18.080 We see it with the OG's at Bitcoin but we 0:15:18.120 --> 0:15:20.760 have seen in up ending in valuations of NFTs an 0:15:20.800 --> 0:15:23.120 area that you were playing heavily in. How do you 0:15:23.240 --> 0:15:25.640 worry about some of the similarities there and how do 0:15:25.680 --> 0:15:28.440 you ensure that the same mistakes aren't remade. 0:15:29.800 --> 0:15:32.040 Well, I think the biggest mistake that was made in 0:15:32.160 --> 0:15:36.520 crypto was is and still is, just the absolute lack 0:15:37.200 --> 0:15:41.080 of clear cut regulations so people know what the rules 0:15:41.080 --> 0:15:43.560 are that they should be playing by. I think that 0:15:43.640 --> 0:15:47.560 there were a lot of companies that were assuming that 0:15:47.640 --> 0:15:50.960 blockchain technology could be used for a lot of different 0:15:51.000 --> 0:15:53.600 things that it really shouldn't have been used for. Look, 0:15:53.800 --> 0:15:58.320 it's a public ledger database, so it's really that blockchain 0:15:58.400 --> 0:16:01.840 is super valuable for any of transaction between two parties 0:16:01.840 --> 0:16:04.360 that don't trust one another. So if two parties don't 0:16:04.360 --> 0:16:06.320 trust one another, they want to transact, they want to 0:16:06.360 --> 0:16:09.560 transact out in the open, so everybody could see what 0:16:09.600 --> 0:16:13.360 that transaction is and have a consistent, constant, historic ledger 0:16:13.440 --> 0:16:17.400 of those transactions. It's really valuable for that. I actually 0:16:17.440 --> 0:16:21.080 think for artists that want to have enduring art out 0:16:21.120 --> 0:16:24.400 in the market and be able to timestamp this new 0:16:24.480 --> 0:16:27.080 piece of art as hey, I made this at this 0:16:27.160 --> 0:16:30.080 date and everything else that comes after that is derivative 0:16:30.120 --> 0:16:34.600 of that's it's extraordinarily valuable to have a public ledger 0:16:34.640 --> 0:16:38.440 for that. I think some of the tokenization that was 0:16:38.440 --> 0:16:43.600 taking place was really short sighted and pretty manipulative. But 0:16:43.680 --> 0:16:46.720 the biggest problem was there was there's been no clear 0:16:46.760 --> 0:16:47.720 regulation and there's. 0:16:47.560 --> 0:16:50.080 No clear regulation for AI either. Is that needed? 0:16:51.160 --> 0:16:54.840 Yes, it is needed, And I think that the most 0:16:54.840 --> 0:16:57.600 promising thing because by the way, it's not just needed, 0:16:57.640 --> 0:16:59.880 it's needed badly. And I think that we've seen some 0:17:00.400 --> 0:17:03.800 extraordinarily intelligent people that have come out and it said 0:17:03.920 --> 0:17:06.800 it's needed and we need to really focus on this. 0:17:07.200 --> 0:17:10.719 I think the companies that are building this recognize that 0:17:11.040 --> 0:17:12.159 regulation is needed. 0:17:12.520 --> 0:17:14.119 And I think, and what. 0:17:14.000 --> 0:17:17.400 I'm seeing is really promising is the founders of these companies, 0:17:17.440 --> 0:17:20.359 the founders of Stability, the founders of Entropic, the founders 0:17:20.400 --> 0:17:25.040 of open Ai, Google and otherwise are really forward thinking 0:17:25.200 --> 0:17:29.000 about what regulation should be because I don't think anybody 0:17:29.000 --> 0:17:32.120 wants this to be an unfettered market. And I think 0:17:32.119 --> 0:17:35.359 there are data privacy implications. I think there are data 0:17:35.480 --> 0:17:39.120 there's what is the value of the data? I think 0:17:39.160 --> 0:17:43.880 there's misinformation issues. I work really heavily in eliminating child 0:17:43.920 --> 0:17:47.600 sexual abuse material from the Internet. I think that's an 0:17:47.640 --> 0:17:51.360 issue that needs to be considered. I think biases need 0:17:51.400 --> 0:17:54.960 to be considered. I think that the traceability of this 0:17:55.080 --> 0:17:57.040 data needs to be considered. All of these things need 0:17:57.080 --> 0:17:59.480 to be considered. The good news is is that the 0:17:59.520 --> 0:18:03.159 founders these companies and the people that are building this technology, 0:18:03.160 --> 0:18:07.199 they're cognizant of it, they're proactive about it. They're considering 0:18:07.280 --> 0:18:10.160 what needs to be done and what good regulation would 0:18:10.200 --> 0:18:14.040 look like, because it's really hard if you don't understand 0:18:14.119 --> 0:18:17.359 how this technology works to understand how to regulate it. 0:18:17.440 --> 0:18:18.879 And the truth, there's a lot. 0:18:18.720 --> 0:18:23.439 Of people that are fear mongering on general artificial intelligence, 0:18:23.480 --> 0:18:27.000 and we're not there. We do not have general artificial 0:18:27.000 --> 0:18:33.639 intelligence yet. It's closer, and we need to be really 0:18:33.680 --> 0:18:37.200 considering what the implications of that are. But the benefits 0:18:37.240 --> 0:18:41.199 to society for the utilization of this technology are going 0:18:41.240 --> 0:18:43.520 to be extraordinary. And what we don't want to do 0:18:44.000 --> 0:18:45.720 is have it regulated in a way that puts it 0:18:45.720 --> 0:18:49.040 inside of a box in box and doesn't allow us 0:18:49.080 --> 0:18:53.720 to continue to innovate, because this isn't just happening domestically. 0:18:54.560 --> 0:18:58.919 This is happening all around the world, and the push 0:18:59.080 --> 0:19:03.600 towards general order official intelligence is going to happen. If 0:19:03.640 --> 0:19:05.520 not here, it's going to happen in China, it's going 0:19:05.520 --> 0:19:07.920 to happen all over the world, and the implications of 0:19:07.960 --> 0:19:08.399 it are. 0:19:08.240 --> 0:19:09.200 Going to be massive. 0:19:09.760 --> 0:19:12.800 So we don't amstring ourselves in a way where we 0:19:12.880 --> 0:19:17.160 are now behind and we're underneath the rock of somebody 0:19:17.160 --> 0:19:20.880 else's general AI. And so it needs to be done 0:19:20.920 --> 0:19:25.359 in an intelligent, thoughtful, proactive way. And the good news 0:19:25.480 --> 0:19:28.240 is that the founders of these companies recognize that, realize that, 0:19:28.359 --> 0:19:29.640 and are being proactive about it. 0:19:29.720 --> 0:19:33.240 Ashton Koscher, thanks for being proactive on the subject with us, 0:19:33.280 --> 0:19:36.359 Sam Venture's co founder general partner. And we're going to 0:19:36.400 --> 0:19:38.919 stick so much more with what's happening in the private markets, 0:19:38.920 --> 0:19:41.320 also what's happening in the public market. It's Etsy earnings 0:19:41.359 --> 0:19:44.320 out last night, first calling on revenue beating analyst estimates. 0:19:44.400 --> 0:19:47.959 Joining us now ever Core II analyst Shwedder Kajuria she 0:19:48.000 --> 0:19:50.520 has an outperform rating on the Etsy stop with one 0:19:50.560 --> 0:19:53.840 hundred and twenty dollars price target. But ultimately we're just 0:19:53.840 --> 0:19:56.640 talking about how AI is going to OpenD everything, and 0:19:56.720 --> 0:19:58.840 if you weren't an e commerce player back in the 0:19:58.920 --> 0:20:01.359 day that managed to pivot. How are you seeing Etsy 0:20:01.480 --> 0:20:04.040 navigate these current macro conditions? 0:20:04.440 --> 0:20:07.399 A Hi, thanks for having me well in terms of 0:20:07.440 --> 0:20:10.920