Speaker 1: From the heart where Innovation, money and power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed lud Love.
Speaker 3: And Caroline Hyde of Bloomberg's world headquarters in New York.
Speaker 3: Ed Ludlow, he's off. This is Bluemeg Technology. Coming up.
Speaker 4: We'll bring you all the details from Apple's let Loose
Speaker 4: product launch as a company brings us.
Speaker 3: The new AI ready iPads, and we'll hear from the
Speaker 3: CFO of Disney's shares full hard.
Speaker 4: After a cautious outlook for streaming subscribers plus Uber and Instacart,
Speaker 4: they team up to take on door Dash. Our interview
Speaker 4: with both of the company's CEOs later this hour.
Speaker 3: First, let's check in on these a marngres.
Speaker 4: We turned to the green even on the NASDAC after
Speaker 4: really some strong days that we've had for the last
Speaker 4: three days.
Speaker 3: I mean remember on money we had the best three.
Speaker 4: Day run for stocks more broadly that we'd had well
Speaker 4: since November. I'm going to bring you back to the
Speaker 4: benchmarks for a moment. I'll get onto these individual players
Speaker 4: in a moment where we are seeing the NASDAC on
Speaker 4: the higher side, we've seen bomb markets actually rally as
Speaker 4: well ahead of that three year auction.
Speaker 3: We're also seeing, of course, the world of crypto.
Speaker 4: Just keeping an eye on what's happening with the world
Speaker 4: of bitcoin at the moment, because we have of course
Speaker 4: seen well in up about one and a quarter of
Speaker 4: a percent, a little bit of risk appetite there in
Speaker 4: the crypto land. Now, let's take it onto some of
Speaker 4: the individual movers that we've had on the day.
Speaker 3: Because this has been thick and fast.
Speaker 4: Earnings still coming of course after the bell yesterday and
Speaker 4: also this morning Disney, as we're going to be getting
Speaker 4: to this company in a moment down more than nine percent. Look,
Speaker 4: some of the numbers were pretty strong. We're seeing still
Speaker 4: a focus on bringing about profitability at this business by
Speaker 4: Bob Byger. However, subscriber numbers looking to be a more
Speaker 4: cautious outlook and forecast coming from the CFO.
Speaker 3: The market falls hard on that.
Speaker 4: Palenteer came after the bell yesterday, and look, we're once
Speaker 4: again seeing some rapid growth, but not as fast as
Speaker 4: people want to see, particularly with the US commercialization growth
Speaker 4: that we're seeing for Palenteer. It came after the bell yesterday,
Speaker 4: and look, we had seen seventy percent in previous quarters
Speaker 4: were down to just oh but a forty percent increase
Speaker 4: in the overall sales growth, So a little bit of
Speaker 4: caution and taking off of the market thereafter the valuation
Speaker 4: and run up. I'm looking at Apple though, up four
Speaker 4: tens percent, the juggernaut unrailing some new products, this one
Speaker 4: all about the iPad, an AI focused iPad pro and
Speaker 4: a larger iPad Air. Want to break down the latest
Speaker 4: of what was just occurring in the last hour or so.
Speaker 3: Rumberg's Dana Wellman were we impressed by the lineup. We've
Speaker 3: been waiting a long time, you know.
Speaker 5: It's interesting, as you say, this is the first iPad
Speaker 5: news we received from the company in almost two years,
Speaker 5: perhaps a year and a half, and the announcement felt
Speaker 5: incomplete to me. This announcement was as I think we expected,
Speaker 5: all about the hardware. The iPads are thinner than before,
Speaker 5: they're lighter, they're faster as you'd expect, and Apple did
Speaker 5: make a hint at the device's AI capabilities. There's so
Speaker 5: much that is still unanswered, clearly about the software experience,
Speaker 5: and as I imagine everyone is thinking, the AI capabilities,
Speaker 5: the company isn't expected to get into any of that
Speaker 5: until it's annual Software Developer conference, which usually takes place
Speaker 5: in early June. So right now we've got some promising notes.
Speaker 5: We know a lot about the hardware. We're still wondering
Speaker 5: in a sense, what can it do fully with the
Speaker 5: software and who is it for? And I only say
Speaker 5: that because the devices are so increasingly laptop like. Yes,
Speaker 5: but Apple also sells laptops, which we're not mentioned today.
Speaker 3: Yeah, So I.
Speaker 4: Mean, for me as a commuter, an iPad makes an
Speaker 4: awful lot of sense. But if you're a designer, if
Speaker 4: you're someone who's wanting the power of a Mac, you
Speaker 4: ever going to be getting this and an iPad?
Speaker 3: Or who do you think the overall consumer is?
Speaker 5: From real perspective, I think these are perhaps laptop replacements
Speaker 5: or secondary laptops, if you will. It's interesting to me
Speaker 5: the higher end iPads here are the first iPads that
Speaker 5: have o LED screens, and this is just in shorthand
Speaker 5: a much more advanced screen technology than even the MAX
Speaker 5: have right now. Some competing PC makers do have laptops
Speaker 5: that have old screens, but not Max. So if you're
Speaker 5: looking for a laptop like experience with a really superior display. Actually,
Speaker 5: the iPads might be a better choice than some max.
Speaker 4: People are liking the stylist, liking the ability with which
Speaker 4: you can interact with it as well. Overall, though we've
Speaker 4: been waiting and waiting, do you think ultimately the fact
Speaker 4: that we've been sort of a drought of new iPads
Speaker 4: will just galvanize demand going into this product?
Speaker 5: Apple would certainly certainly hope. So the most recent quarter
Speaker 5: was particularly disappointing for Apple in terms of iPad sales,
Speaker 5: And it would make sense when you remember that the
Speaker 5: hardware really was so stale, And consumers aren't stupid, They
Speaker 5: do know, they understand something about the rhythm of iPad
Speaker 5: and Apple update cycles in general. And I wouldn't be
Speaker 5: too keen on buying something that hadn't been updated in
Speaker 5: over a year, knowing that Apple is likely to have
Speaker 5: an update around the corner just about any time.
Speaker 4: And then we have the handwringing issue of Apple being
Speaker 4: behind the curve, so to speak, when it comes to
Speaker 4: artificial intelligence. Many would say, look, just it always comes
Speaker 4: in a little bit slower, but then comes with strength.
Speaker 4: Are you feeling from an investor perspective, but from a
Speaker 4: user perspective that AI on an iPad or AI on
Speaker 4: device is really going to be a winning formula for Apple.
Speaker 5: Yes, I expect Apple to have some interesting news. I
Speaker 5: don't know what it's going to be, but I do
Speaker 5: believe Apple is going to be talking quite a bit
Speaker 5: about AI and it's coming conference. I also think, to
Speaker 5: some extent, this is a little bit about marketing and
Speaker 5: the language that Apple has chosen to use. I remember
Speaker 5: there was a different competing software conference, it may have
Speaker 5: been Google about a year ago, and they would not
Speaker 5: stop saying AI. You can choose to say AI over
Speaker 5: and over again. Does that make it true that you
Speaker 5: have invested more in AI and that you're doing a
Speaker 5: better job. I think a lot of what Apple already
Speaker 5: has in its products is to an extent AI powered.
Speaker 5: Even if they're not using the words AI, I do
Speaker 5: think they have more to share and need to say more,
Speaker 5: if not to actually catch up, to at least at
Speaker 5: the very least correct the perception that they have lagged
Speaker 5: behind the competition.
Speaker 3: A bit of pring, a little bit of storytelling here.
Speaker 4: When you've already got the M four ship in there,
Speaker 4: which makes it AI ready. There, we have the stylist
Speaker 4: that we can currently see. Daniel Woman so great to
Speaker 4: have you on the same launch day from Bloomberg.
Speaker 3: We thank her.
Speaker 4: After that board fight, there was one. We now see
Speaker 4: some money coming off the table of Disney when it
Speaker 4: comes to its share price because earnings are out and
Speaker 4: there was some caution ahead when it comes to subscriber growth.
Speaker 4: But let's dig into where the numbers actually did manage
Speaker 4: to beat. I'm looking at earnings for share looking strong
Speaker 4: for Disney overall. We're also seeing the fact that they
Speaker 4: are on course to mainly focus on profitability come the
Speaker 4: fiscal next quarter. Even by the fourth quarter, you can
Speaker 4: see profit ability in their streaming unit and we're seeing
Speaker 4: those still by seven point four percent over the last
Speaker 4: two trading days for Disney, and a lot of this
Speaker 4: is coming because there's still a lot of weakness and
Speaker 4: TV in cable. Of course, they have the twin strikes
Speaker 4: that impacted the amount of revenue that they're getting overall
Speaker 4: from their movies, and maybe we're seeing well a steer
Speaker 4: towards a slowing and insatiable demand to be getting to
Speaker 4: those parks and on those boats that Disney has as well.
Speaker 3: We spoke the CFO Hugh.
Speaker 4: Johnston a little bit earlier and just hear his cautious take.
Speaker 6: The quarter was really a strong one for US, seventeen
Speaker 6: percent of I growth, thirty percent EPs growth.
Speaker 2: That's what led us to raise guidance.
Speaker 6: To twenty five percent EPs growth for the full year,
Speaker 6: which is obviously quite strong.
Speaker 2: Two big stories I think here. Number one, you were just.
Speaker 6: Talking about our experiences business was up ten percent on
Speaker 6: a revenue basis, twelve percent on an a.
Speaker 2: Y basis, and the park's.
Speaker 6: Business was actually up thirteen percent on OI, So we
Speaker 6: do feel.
Speaker 2: Good about that.
Speaker 6: Obviously, I watch other stocks report and seen the value
Speaker 6: consumer is really struggling a bit and making choices right now.
Speaker 2: We're not really seeing as much of that in our
Speaker 2: portfolio of products.
Speaker 6: The other positive for US is obviously the streaming service.
Speaker 6: Last year we lost about six hundred million dollars. This
Speaker 6: year we're about break even and we saw twelve percent
Speaker 6: revenue growth, So we're encouraged by the progress we've made
Speaker 6: in that business in a relatively short period of time.
Speaker 7: Hugh, you said that you're not seeing that kind of
Speaker 7: price sensitivity. How much could you increase prices in from here?
Speaker 6: It's a great question we took prices up a little
Speaker 6: bit in the beginning of this year and didn't really
Speaker 6: see much of an impact. So as to what the
Speaker 6: future brings, we're obviously very judicious with the way that
Speaker 6: we price. We want to provide access to as many
Speaker 6: guests as we possibly can, but we do believe that
Speaker 6: the great experiences we provide people are willing to pay for.
Speaker 2: Hugh.
Speaker 7: Over the past six months, we've been talking about the
Speaker 7: cost cutting operations in Disney. Have we finished some of
Speaker 7: the shrink have we finished the pairing back and are
Speaker 7: you back on some sort of growth trajectory.
Speaker 6: We are definitely back on a growth trajectory. That said,
Speaker 6: we're always going to be looking hard at our cost structure,
Speaker 6: in particular looking to reduce costs where perhaps they add
Speaker 6: less value than they used to, and redeploy some of
Speaker 6: that money back into the business so that we can
Speaker 6: actually grow the balance of the business. So I think
Speaker 6: that's a never ending exercise of looking for ways to
Speaker 6: be more efficient as a company so that you can
Speaker 6: invest in your future.
Speaker 7: When you talk about growing, where is that growth focused on?
Speaker 2: Geographically?
Speaker 7: We know that in the US you've got a very
Speaker 7: strong parks business. In Europe there also is a parks presence.
Speaker 7: But in Asia, in particular in China, that has been
Speaker 7: a growth area. Is it still how much can that
Speaker 7: be a bright spot at a time of increasing geopolitical tensions?
Speaker 6: Yeah, I do think not just China, but all of
Speaker 6: Asia represent growth opportunities for us, both in terms of
Speaker 6: the streaming service and select markets as well as in
Speaker 6: terms of the parks and cruises business. So we do
Speaker 6: see good growth oport tunities there. Europe and Latin America
Speaker 6: continue to be good growth opportunities. And make no mistake,
Speaker 6: North America we're not done growing yet. We still think
Speaker 6: there are terrific opportunities here for us right at home.
Speaker 8: When it comes to Asia Pacific, is it domestic demand
Speaker 8: within those countries, specifically China or is it tourists in
Speaker 8: the region.
Speaker 6: Combination of botho't I wouldn't tie it to one or
Speaker 6: the other.
Speaker 2: I think it's a combination of both.
Speaker 8: And when you look at China, to Lisa's point, you
Speaker 8: know we're going into a very heated political election coming
Speaker 8: up in November, very hot rhetoric regarding China. Is it
Speaker 8: becoming more challenging to deal with authorities in Beijing and
Speaker 8: business on the ground. Given the increased geopolitical tensions, it.
Speaker 2: Has not been for us.
Speaker 6: You know, one of the benefits of what we do
Speaker 6: for a living is, you know, we make people smile.
Speaker 6: We bring them happiness, right, we bring them the most
Speaker 6: magical place on earth. Candidly, the government's investing in infrastructure
Speaker 6: to make it easier for guests to get to.
Speaker 2: And from the park.
Speaker 6: Were containing to invest in that park in order to
Speaker 6: drive growth.
Speaker 2: It's doing better now than it ever has.
Speaker 6: So we're the fortunate beneficiaries of bringing people joy in
Speaker 6: a world that needs it.
Speaker 4: Hugh Johnston Disney CFO there coming up. Actually, we're going
Speaker 4: to be hearing from the former Google CEO, Eric Schmidt
Speaker 4: on China as well as his think tank holds its
Speaker 4: first ever AIXPO on competitiveness.
Speaker 3: In that field.
Speaker 4: Meanwhile, let's just have a little little look on what's
Speaker 4: happening on the sharefront of Infinian. Now here's a chip
Speaker 4: focused business that's looking at China as well, looking.
Speaker 3: At auto demand.
Speaker 4: Basically, it's chips within evs saying China is actually bottoming
Speaker 4: the seeing healthy demand there.
Speaker 3: For Infinian product products. We're not more than twelve percent.
Speaker 4: Yet another key chip designer or maker or builder that
Speaker 4: is showing that maybe we've just seen the botted out
Speaker 4: in terms of the ev lackluster demand that we've seen
Speaker 4: of late.
Speaker 3: This has greenbod technology time now for talking tech.
Speaker 4: First up, Nintendo says a successor to its seven year
Speaker 4: old Switch game console is on the way now. The
Speaker 4: announcement is course coming after its forecasts a bigger than
Speaker 4: expected profit decline for the current fiscal year. Now, in
Speaker 4: a post on x, the company's president said the new
Speaker 4: device is set to be announced in the coming year.
Speaker 4: Fans investors they have long been waiting on this news
Speaker 4: of a succession plan for the twenty seventeen gadget, which
Speaker 4: has sold more than one hundred and forty one million
Speaker 4: units since his debut. Plus, chip maker Nvidia is investing
Speaker 4: in UK autonomous driving tech startup Wave in a one
Speaker 4: point zero five billion dollar funning round. The venture is
Speaker 4: actually led by SoftBank Group and existing back of Microsoft.
Speaker 4: Is one of the largest ever for a European AI company. Now,
Speaker 4: the cash injection underscores that continued DEMANDRAI, especially among the
Speaker 4: auto's industry. Valuation of Wave not disclosed. Meanwhile, talking of
Speaker 4: evs and autonomous vehicles. Tesla faces in July first dead
Speaker 4: lie to submit information to US regulators our concerns about
Speaker 4: its autopilot system now the electric car make it issued
Speaker 4: a recal remember of over two million vehicles back in
Speaker 4: December or reports of drivers crashing while using the future.
Speaker 4: The National Highway Traffic Safety Administration says it has opened
Speaker 4: up a query as to whether it has a software
Speaker 4: update was sufficient in preventing crashes. Now today is the
Speaker 4: Special Competitive Studies Project and it's kicking off its first
Speaker 4: ever AI Expo for national competitiveness over in Washington. I
Speaker 4: sat down with the SCSP chair and former Google CEO
Speaker 4: Eric Schmidt to discuss how the US is going on
Speaker 4: in the AI race.
Speaker 9: Well, the good news is the US is way ahead
Speaker 9: of China and everybody else, and I think that's going
Speaker 9: to continue for a while. To me, national competitiveness is
Speaker 9: the challenge for the next ten or twenty years, because
Speaker 9: the Chinese are really focused on dominating certain industries and
Speaker 9: we need to compete with.
Speaker 10: Them and make sure we win.
Speaker 9: In the case of artificial intelligence, we are well ahead
Speaker 9: two or three years. Probably we have China, which in
Speaker 9: my world is in eternity. I think we're in pretty
Speaker 9: good shape.
Speaker 10: And the crazy.
Speaker 9: Valuations, all the money, all the new experimentation, this sort
Speaker 9: of enormous adoption of AI that's occurring. We have a
Speaker 9: lot of implications on society and very good for business.
Speaker 4: What about, well, ultimately the pace of regulating artificial intelligence,
Speaker 4: is there any risk that we stifle innovation and so doing?
Speaker 9: There's always a risk of premature regulation. My simplest example
Speaker 9: there is Europe. I've spent ten years trying to convince
Speaker 9: Europe to actually innovate instead of regulate, and they just
Speaker 9: keep regulating. The current EU ACTAI EU act is essentially regulation,
Speaker 9: not investment in the future. You can see that Europe
Speaker 9: is highly unlikely to be relevant. China, of course, is
Speaker 9: struggling because of chips shortages and so forth. All that
Speaker 9: they're ready to win if they can get the harder
Speaker 9: that they need.
Speaker 10: And the rest of the world is not focused enough
Speaker 10: on this.
Speaker 9: So the good news from myself my position in terms
Speaker 9: of America, here we are in DC for national competitiveness.
Speaker 10: We're the likely winner if we don't screw it up.
Speaker 3: I'm really interested.
Speaker 4: You say, perhaps China is being pushed behind because of
Speaker 4: its lack of access to chips.
Speaker 3: Are we currently navigating that new once Well.
Speaker 9: Well, the Trump administration followed by the Biden administration did
Speaker 9: a good job in getting those rules in place.
Speaker 10: It's a good.
Speaker 9: Example and not a common example of how a targeted
Speaker 9: intervention has a positive measured outcome from the standpoint of
Speaker 9: the national security So I think we're good there. It's
Speaker 9: very important and I led the National Security Commission on
Speaker 9: Artificial Intelligence a few years ago for the Congress. It's
Speaker 9: very important that we get more basic money out of
Speaker 9: the government for basic research.
Speaker 10: We're building intelligence.
Speaker 9: We're building a new form of non human intelligence that
Speaker 9: will change the world forever in a good way. Furthermore,
Speaker 9: it needs to be done with our partner countries. These
Speaker 9: are the five Eyes of the UK, that sort of
Speaker 9: thing some of European countries. And also it needs to
Speaker 9: be done with American values. So using China as the bogeyman,
Speaker 9: imagine if they were in charge of the Internet and
Speaker 9: they were in charge of the rules, and you imagine
Speaker 9: how very different your experience as a user on the
Speaker 9: Internet would be today. You can show up, you can
Speaker 9: be anonymous, you can do whatever you want within reason
Speaker 9: that kind of freedom is central to the spirit of
Speaker 9: the Internet, and it's important to be preserved.
Speaker 4: Talking about a bogeyman, and a Chinese related bogeyman, TikTok
Speaker 4: became the bogaman that many are now trying to regulate.
Speaker 3: To indeed ban, or to sell.
Speaker 4: There's been some reporting that you've been interested, alongside Minution
Speaker 4: in potentially purchasing us TikTok.
Speaker 3: Would you still be.
Speaker 10: I'm not currently looking at that. I looked at it
Speaker 10: for a while.
Speaker 9: My personal view on this is you're better off regulating
Speaker 9: than banning or a judicial action. All the big tech
Speaker 9: companies are now in the hands of the DOJ in
Speaker 9: various legal fights. I would prefer to see a regulatory
Speaker 9: regime that is sort of has the right incentives and
Speaker 9: the right prohibitions.
Speaker 10: For all of these things.
Speaker 9: My own view of TikTok is that TikTok is not
Speaker 9: really social media, it's really television, and that you can
Speaker 9: regulate television by the equivalent of the equal time rule.
Speaker 9: But somehow we're not having that conversation.
Speaker 3: What's interesting is, of.
Speaker 4: Course, you say, many big tech companies are currently well
Speaker 4: entangled from a time perspective with the DOJ. One of
Speaker 4: them being where we know you howm from, of course,
Speaker 4: the previous CEO of Google. Where do you rate from
Speaker 4: a personal perspective, where Google is in the AI competition race.
Speaker 9: Well, it's interesting that almost all of the technology you're
Speaker 9: seeing today was invented at Google about five to ten
Speaker 9: years ago. And it's one of the sort of great
Speaker 9: things that during that period Google had a roughly, in
Speaker 9: my estimate, two thirds of the world's talent in AI
Speaker 9: was working at so Google had a very very strong
Speaker 9: head start. I think Google is a complicated place, is
Speaker 9: a lot going on. Open Ai in particular, came out
Speaker 9: with GPT three three point five and four and did.
Speaker 10: A fantastic job.
Speaker 9: I think that was the competitive nudge that has gotten
Speaker 9: Google back in the game. What I like now is
Speaker 9: you have these two huge companies, Microsoft and open Ai
Speaker 9: together and Google Google Alphabet again operating together, and you
Speaker 9: have them putting billions of dollars hardware and enormous software
Speaker 9: teams to invent this new future. This is not to
Speaker 9: take away from Anthropic, another competitor. Obviously, whatever Elon is
Speaker 9: doing with x dot ai, he's raising a huge amount
Speaker 9: of money, and Meta has recently released a four hundred
Speaker 9: billion parameter modelers and the.
Speaker 10: Process of releading it.
Speaker 9: That looks really, really good, So that competition is the
Speaker 9: right answer to the regulators and to everyone's question. Competition
Speaker 9: brings out enormous value to consumers. And eventually people will
Speaker 9: see this and they'll say, oh my god, look at
Speaker 9: what this does.
Speaker 10: And it's free.
Speaker 9: And of course all that money was paid out of
Speaker 9: the markets, billions of dollars that's going in right now,
Speaker 9: and they'll monetize it somehow.
Speaker 4: Omer Google CEO Eric Schmidt there and of course the
Speaker 4: current chair of the SCSP coming up. We're going to
Speaker 4: continue the conversation on artificial intelligence competition with the CEO
Speaker 4: of that organization, the SCSP. Meanwhile, let's just stick with
Speaker 4: China and national security now. It was likely behind a
Speaker 4: recent hack into the personal data a British Armed Forces.
Speaker 3: Personnel scored into sources.
Speaker 4: The hack has breached the payroll system used by Britain's
Speaker 4: Defense Ministry and obtain the names and bank account details
Speaker 4: of members of the Army, the Royal Navy, the Royal
Speaker 4: Air Force and some veterans. This comes as Chinese President
Speaker 4: Husion Thing is actually visiting Europe this week. To attempt
Speaker 4: to smooth out relations with the European Union, which has
Speaker 4: been adopting a far more hawkish position on Beijing. Now,
Speaker 4: let's just return to some corporate news for you now
Speaker 4: and some shares that we want to be watching and
Speaker 4: currently on the move.
Speaker 3: Now, AWS looks.
Speaker 4: Like it's we're pouring money into Asia, but it's Singapore
Speaker 4: where they're focusing. They committing nine billion dollars to double
Speaker 4: Singapore's cloud push. In particular, the Cloud Operator is the
Speaker 4: latest global tech company to actually target the Singapore region
Speaker 4: and it's growing in Southeast Asia to diversify away from
Speaker 4: guesswhere China. We're upper quarter of a percent on Amazon.
Speaker 4: This is Bloomberg Technology. Welcome back to Bloomberg Technology. And
Speaker 4: Caroline had in New York. Let's check in on these
Speaker 4: markets because well, after a strong three days of gains,
Speaker 4: best since November, we're still on a March high and
Speaker 4: that's that one hundred powering up some three tenths of
Speaker 4: a percent. This is we still perhaps anticipate room for
Speaker 4: the FED to cut throughout the rest of the year.
Speaker 4: We're hearing from Neil Kashkari a little bit later. Tenure
Speaker 4: yield currently off by six basis points. And when we've
Speaker 4: got a lot of auctions coming this and we've got
Speaker 4: a load of three year debt on the table. Today
Speaker 4: we're at four point four to two, let's call it
Speaker 4: on the ten year. Bitcoin managing to turn around nicely.
Speaker 4: Now we're up nine tens percent. It's eight hundred and
Speaker 4: seventy seven. Little bit of a scapetite creeping into crypto.
Speaker 2: Move on.
Speaker 4: Have a look at some of the individual movers that
Speaker 4: we're looking on the day, and there's been a raft
Speaker 4: of earnings, some of them slightly more cautious than the
Speaker 4: market wanted to see, particularly when it came to subscriber growth.
Speaker 4: For Disney, we're just down about almost ten percent. Maybe
Speaker 4: some profit taking coming off the table for Disney. We're
Speaker 4: seeing Data dog down hard, off by eleven percent. This
Speaker 4: New York company, again many had anticipated some strong growth
Speaker 4: because hyperscalers have been showing some growth in their earnings,
Speaker 4: maybe didn't feed across in the way that the market
Speaker 4: had anticipated. Were off by some eleven percent. In Video
Speaker 4: off by one point seven percent. Chip maker Well, I mean,
Speaker 4: we're seeing druck and Miller reportedly saying he's actually winding
Speaker 4: down well, taking off some of his chips, his bets
Speaker 4: on n video and reducing some of his holding in
Speaker 4: that particular tech stock. We're off just by one point
Speaker 4: seven percent, door dash off by two percent. Interesting moves
Speaker 4: coming from Uber and Instacart to take on doors. We're
Speaker 4: seeing restaurant delivery is being folded into Instacart. They're going
Speaker 4: to be adding Uber its menus and tracking to its apps.
Speaker 4: Let's talk about that because well, Bloomberg's Emily Chang spoke
Speaker 4: with the instacut CEO Pretty Simo and Uber CEO Dar
Speaker 4: Kososhahi on the tactics here.
Speaker 3: Take listen.
Speaker 11: We have heard from instagralt customers that they come to
Speaker 11: the instagrat app to order our groceries for the week,
Speaker 11: but sometimes they also want the NFL the night. And
Speaker 11: so we wanted to enter restaurants delivery without destructing ourselves
Speaker 11: from our number one priority, which is grocery, and so
Speaker 11: we looked for a partner that would allow us to
Speaker 11: from day one have hundreds of thousands of restaurants available
Speaker 11: to instagult customers on the Instagart app. And we're very
Speaker 11: excited to be doing sponarpship with you.
Speaker 4: Berries Dara, instacart is a competitor, given that Uber is
Speaker 4: pushing into grocery and of course retail, why cross enemy lines.
Speaker 1: Well, certainly instacart is a very strong compartit as it
Speaker 1: relates to grocery. But for us, it was an opportunity
Speaker 1: to expand essentially the Uber eats business, especially into the
Speaker 1: suburban markets where instacart is particularly strong, families, et cetera.
Speaker 1: You know, Uber has historically had a real strength in
Speaker 1: the cities, the younger affluent customers who are in the cities.
Speaker 1: That's where Rocher originally came from. And as we've expanded
Speaker 1: into Uber Eats, Uber eats is much stronger in city
Speaker 1: centers than let's say, suburbs, and we thought that the
Speaker 1: opportunity to put our brand and our service in front
Speaker 1: of the incredible instarecart customer base in a way that
Speaker 1: is a terrific experience will be good for business but
Speaker 1: also really good for our restaurant partners. You know, what
Speaker 1: Uber eats is all about is bringing more business to
Speaker 1: our restaurant partners, bringing more opportunities to earn for our careers.
Speaker 1: And we're certainly hoping that those instacar customers are big.
Speaker 4: Tippers Fiji investors seem to like Uber's push into grocery.
Speaker 3: Why give them a foot in the door.
Speaker 11: Well, I think there are a lot of companies that
Speaker 11: compete in one area and collaborate in another, and this
Speaker 11: is a good example where on the restaurant front we
Speaker 11: found a lot of alignment and we think that this
Speaker 11: is going to be a highly beneficial for instagled customers.
Speaker 11: Now we have the leading selection in grocery fifteen hundred
Speaker 11: retailers eighty five thousand stores in grocery combined with hundreds
Speaker 11: of thousands of restaurants thanks to this ownership, and we're
Speaker 11: also making our instaglt plus membership more valuable. So we
Speaker 11: think this is a win win all around. And when
Speaker 11: we see these kinds of win wins, we jump on them.
Speaker 12: So tell us a little bit about the logistics here,
Speaker 12: how exactly this is all going to work.
Speaker 3: Will customers be redirected to Uber Dhara? Part of the
Speaker 3: order is Uber handling? How are you splitting revenue and fees?
Speaker 1: Yeah, I can get started in MPG, can continue. So
Speaker 1: the experience is an instacart experience. And the way I
Speaker 1: put Emily is that if you go to the Uber
Speaker 1: Rides app. Right now, you see kind of a you know,
Speaker 1: the original rides experience that you have, but there's also
Speaker 1: an eats experience that is essentially looks like it's built
Speaker 1: into the Uber Rides app where you can have the
Speaker 1: eats experience inside of rides. We've taken that technology that
Speaker 1: we perfected as part of the platform that we're building
Speaker 1: an Uber and we're extending it in partnership with Instacart.
Speaker 1: So the branding is going to be joint branding, but
Speaker 1: it's the look and the field and the experience is
Speaker 1: going to feel a lot like Instacart. So I think
Speaker 1: the instacr user is going to sit with an Instacart,
Speaker 1: and I think the experience is going to be an
Speaker 1: experience that's quite consistent with what those users are accustomed to.
Speaker 4: Uber CEO Darakles Forshahi there as well as the cat
Speaker 4: CEO Fugisimo, along with our own Emily Chang. Let's return
Speaker 4: to Washington now, though, because the Special Competitive Studies Project
Speaker 4: is kicking off its first ever AI expo for national competitiveness.
Speaker 4: I sat down with the SCSP chair and of course
Speaker 4: the former Google CEO Eric Schmidt to discuss.
Speaker 9: To me, national competitiveness is the challenge for the next
Speaker 9: ten or twenty years because the Chinese are really focused
Speaker 9: on dominating certain industries and we need to compete with
Speaker 9: them and make sure we win.
Speaker 10: In the case of artificial intelligence.
Speaker 9: We are well ahead two or three years probably have China,
Speaker 9: which in my world is in eternity.
Speaker 10: I think we're in pretty good shape.
Speaker 4: And pleased to say we can dig in on this
Speaker 4: conversation with the CEO of a special competitive studies project
Speaker 4: Eli byrectari eally, thank you for joining us just ahead
Speaker 4: of the Key expo unveiled Well, and I'm interested in
Speaker 4: is that, ultimately how optimistic you are of China visa v.
Speaker 3: The US, Eric Schmidt. They're saying we are years ahead
Speaker 3: of China. What makes you so confident of that?
Speaker 13: Well, I mean has been pretty clear about we want
Speaker 13: to They have They're putting the enormous resources, their strategy,
Speaker 13: they have their national champions and in short, a lot
Speaker 13: of land. When it comes as I said, we are
Speaker 13: ahead of China, that makes us, uh slow down.
Speaker 12: I think we need to continue investing. We need to
Speaker 12: continue bring public and try the sector together because otherwise
Speaker 12: a competitor that has a civil future. In other words,
Speaker 12: the reality works Landing Love we trate Settler, you know,
Speaker 12: getting ahead of these technologies.
Speaker 3: Ayah, I'm so sorry.
Speaker 4: We've got some technical difficulties on the line and we're
Speaker 4: hearing an echo. Will be back to you in a moment, really, Tari,
Speaker 4: he's a Special Competitive Studies Project CEO.
Speaker 3: This will be my technology. Let's get back to Washington.
Speaker 4: But pleased to say the CEO the Special Competitive Studies
Speaker 4: Project is still with US eally, Tari, thank you Eli
Speaker 4: for well.
Speaker 3: Working through some of these tech issues.
Speaker 4: But more broadly, I want to get to the tech
Speaker 4: issue in the use of generative AI within basically the
Speaker 4: area of particularly when it comes to intelligence agencies. This
Speaker 4: is an area that you've got a awful lot of
Speaker 4: experience in. Are we seeing an adoption of generator AI
Speaker 4: within our own intelligence agencies in the US?
Speaker 12: So, I think, like with any previous technology trus traumative era,
Speaker 12: I think our intelligence community is adopting. You could argue
Speaker 12: that two steps forward, one step backward, but I think
Speaker 12: everybody recognizes these technologies are going to be so powerful
Speaker 12: that our intelligence cuity needs to adopt Now, as you know,
Speaker 12: intelligence community runs through a strict codes of how they
Speaker 12: buy and how they use these technologies. Obviously there are
Speaker 12: privacy related issues about using these technologies. So I think
Speaker 12: everybody recognizes how these are important technologies that we need
Speaker 12: to adopt for the intelligence missions purposes, and I think
Speaker 12: everybody's making it some kind of progress in the area
Speaker 12: of their mission.
Speaker 4: Of course, you were a chiefer staff to the National
Speaker 4: Security Advisor, a master, so someone who has a lot
Speaker 4: of experience in this field. Going back to more broadly,
Speaker 4: what the Special Competitive Studies Project is doing right here
Speaker 4: right now, as you're also trying to find what would
Speaker 4: stymy the competitiveness of the US. One issue with generative
Speaker 4: AI is access to energy, access to chips. Where are
Speaker 4: you thinking of thought leadership of ensuring that US stays
Speaker 4: ahead when it comes to energy adoption.
Speaker 12: Yeah, I mean, look, the chipsidle was the first problem
Speaker 12: leading legislation in many years in which you had such
Speaker 12: a bipotisan support that we as a country dedicated fifty
Speaker 12: two billion dollars to bring back and build in this
Speaker 12: country some of the manufacturing capabilities that we've lost for
Speaker 12: the last twenty plus years. So I think hardware and
Speaker 12: in this instance chips are really important. I think now
Speaker 12: we are uncovering that energy demand is going to be
Speaker 12: a true capability that you need to build these next
Speaker 12: generation AI technologies. I think there are several paths we
Speaker 12: can take as a country. You know, there's a lot
Speaker 12: of energy. There's a lot of energy around the fusion.
Speaker 12: I would argue, as we have a lot of companies
Speaker 12: here at AI National Competitives explo in DC that presents
Speaker 12: some of the key fusion companies. We have other pathway
Speaker 12: stores getting through the energy. But I think AI could
Speaker 12: help us transform also the energy resources we have energy,
Speaker 12: energy sources and diversify, you know, going forward because of
Speaker 12: the demands and because of the means you have, you know,
Speaker 12: to get to the next generational BUFO conations.
Speaker 4: When you're bringing together government institutions, you're bringing to other academics,
Speaker 4: you're bringing together corporates, what outcome ultimately do you want?
Speaker 3: Do you think we are firing on all cylinders.
Speaker 4: When it comes to discussion of how to harness this
Speaker 4: leap forward in technology right now?
Speaker 12: So I don't think we are. I mean that's why
Speaker 12: I think we organized this expert because innovation happens in
Speaker 12: the pockets. You know, we have like most of the
Speaker 12: innovation happening in the East Coast or West Coast. And
Speaker 12: then you have in Washington. You know, you have the
Speaker 12: federal agencies that are doing two things. Both trying to
Speaker 12: adapt these technologies for the purposes of what they do daily,
Speaker 12: whether it's Health and Human Services or HUMA or the
Speaker 12: Partner of Defense. But also they're all subdrafting policies and
Speaker 12: how we use these technologies. So the purpose is really
Speaker 12: to bring as we call Hall of Nation in Nations
Speaker 12: capital where they can talk, they can exchange ideas, they
Speaker 12: can exchange business cards, and ultimately here and talk about
Speaker 12: the benefits and challenges of all these technologies and how
Speaker 12: do we move fast in adopting all of them for
Speaker 12: the next five to seven years.
Speaker 4: While we wish you well on that bringing together of
Speaker 4: academics and government and see what the outcome is. Ili Baktari,
Speaker 4: we thank you so much for your time today, Special
Speaker 4: Competitive Studies Project CEO over there in Washington, theaix BO. Meanwhile,
Speaker 4: let's just talk about what Microsoft has been doing. It's
Speaker 4: deployed a generative AI model entirely divorced from the Internet,
Speaker 4: saying that US intelligence agencies can now safely harness the
Speaker 4: technology to analyze top secret information. Most AI models like
Speaker 4: CHATGBT rely on the cloud services to learn and infer
Speaker 4: patterns from data, but this is the first time a
Speaker 4: major large language model can actually operate fully separated from
Speaker 4: the Internet, which allows spy agencies to use AI while
Speaker 4: avoiding the risk that data could leak out into the open.
Speaker 4: This whole narrative is one we're going to stick with
Speaker 4: now because we're going to talk more broadly about cybersecurity.
Speaker 4: The RSA conference is in full swing over in San Francisco.
Speaker 4: Bring together the world's top cybersecurity government, business leaders, and
Speaker 4: they're going to dissect and strategize on the best practices
Speaker 4: to tackle such new threats. Let's bring in Palo Alto
Speaker 4: Networks chief product officer Lee Clerch for more and Lee,
Speaker 4: I can imagine once again, AI is the first topic
Speaker 4: of conversation.
Speaker 3: What's winning out in the battle of.
Speaker 4: Well, bad actors adopting it or the cybersecurity contingent adopting it.
Speaker 2: Oh, you're absolutely right, the attackers.
Speaker 14: You know, when chat GPT first launched, the first thing
Speaker 14: they started doing was figuring out how they could leverage
Speaker 14: AI to their advantage, and the first thing we did
Speaker 14: in cybersecurity is we started figuring out how we could
Speaker 14: leverage AI to counter that. And today we've had a
Speaker 14: series of AI security announcements focused on how we bring
Speaker 14: precision AI to combat these attackers that are going to
Speaker 14: be using AI everywhere.
Speaker 4: So you bring out, ultimately the things that people put
Speaker 4: in their arsenal to be able to fend off such attacks.
Speaker 4: Can you just give us a size and scope of
Speaker 4: how much we are seeing more cybersecurity issues threats amount
Speaker 4: because of generative AI.
Speaker 14: Yeah, it's hard to trace its specifically to generative AI.
Speaker 14: We see millions of new attacks launched every single day.
Speaker 14: We see this in our telemetry, we see this in
Speaker 14: our machine learning models, our AI models that are detecting
Speaker 14: these attacks in real time, and all of that translates
Speaker 14: into billions of attacks being blocked every day. Now, how
Speaker 14: much of that is specifically the results of generative AI
Speaker 14: versus more traditional mechanisms. It all starts to kind of
Speaker 14: blend together, but it definitely points to the increase in scale,
Speaker 14: and we're also seeing, maybe even more importantly, an increase
Speaker 14: in sophistication of these attacks where attackers are able to
Speaker 14: use generative AI to improve their chances of actually carrying
Speaker 14: out a successful attack.
Speaker 4: Of course, regulation has tried to keep a pace of
Speaker 4: this and disclosure, the SEC in particular mandating basically prompt
Speaker 4: disclosure of whenever a company a corporate has indeed had
Speaker 4: a material incident. How are you seeing that prompting the
Speaker 4: leaders in security within the corporates to come to you
Speaker 4: to ensure that they've invested in the right product at
Speaker 4: the right time.
Speaker 2: Great question.
Speaker 14: Actually, I see a lot of value in some of
Speaker 14: these new regulations in driving investment towards cybersecurity, the necessary
Speaker 14: investment quite frankly given the security landscape, and a lot
Speaker 14: of these measures are oriented toward making sure that organizations
Speaker 14: have the right security capabilities. Increasingly, that means the need
Speaker 14: to be real time in their security operations and when
Speaker 14: something does happen prompt disclosure, which of course is really
Speaker 14: good for the industry. It helps everyone understand what's happening
Speaker 14: so we can all learn from it quickly. It also
Speaker 14: makes sure that the end consumer understands what's happening and
Speaker 14: can take necessary actions if needed. So all of that
Speaker 14: that'll culminates in the sort of the other side of cybersecurity,
Speaker 14: which is this is a battle we can win. I'm
Speaker 14: in cybersecurity, but I'm actually very optimistic about the benefits
Speaker 14: of AI and other technology benefiting those of us who
Speaker 14: are all trying to defend organizations around the world, and.
Speaker 3: You've been trying to defend it since two thousand and six.
Speaker 4: Over with the Palo Alto Networks in the product area,
Speaker 4: chief product Officer Lee Cleric, leaving us with a bit
Speaker 4: of optimism there.
Speaker 3: We thank you from New York and San Francisco. This
Speaker 3: is the bluemoid technology.