Speaker 1: I'm Caroline Heinde a Bloomberg's WORLDEAD quarters in.
Speaker 2: New York and Imed Ludlow in San Francisco. This is
Speaker 2: a special edition of Bloomberg Technology coming to you live
Speaker 2: from the Bloomberg Technology Summit in Caroline.
Speaker 3: What a way to start.
Speaker 2: Man of the moment, really, Sam Altman open AI CEO,
Speaker 2: so much to recap, but at a top level, saying
Speaker 2: we need global regulation with a capability threshold. Things will
Speaker 2: go wrong in AI, but the future is bright from
Speaker 2: a technology.
Speaker 1: Perspective, ultimately seemingly optimistic. Also some clarity really around his
Speaker 1: own motivating forces, wanting to make impact, wanting to further
Speaker 1: technology for good, and really sort of seemingly at odds
Speaker 1: with why humanity, why most people really want to know
Speaker 1: why he has not much skin in the game financially.
Speaker 1: He seems to be saying like he's going to make
Speaker 1: money in the future, don't you worry about it? Also,
Speaker 1: I thought the interesting perspective on China and Russia and
Speaker 1: the fact that ultimately he doesn't have great insight there
Speaker 1: at the moment either.
Speaker 2: Me too that the theme of the Bloomberg Technology Summit
Speaker 2: is the turning point in Sam Outman talks about how
Speaker 2: little we know about what's going on in China in
Speaker 2: the field of artificial intelligence. But he also framed this
Speaker 2: is the biggest step for mankind in terms of technology,
Speaker 2: and I really think that's going to be a discussion
Speaker 2: here all day long.
Speaker 1: Yeah, we've got more AI discussion coming right up. Bluing
Speaker 1: Bog Technology Summit is still going on. Emily chang Am
Speaker 1: Bradstone And now sitting down, we've read Hoffmann of Graylock
Speaker 1: and co founder of DeepMind, now CEO of Inflection AI
Speaker 1: stuff ustlument In brands for digital influencers.
Speaker 4: Our belief is that everyone is also going to have
Speaker 4: a personal AI, one that is aligned to your interests,
Speaker 4: on your team, in your corner, gets to know you
Speaker 4: and really forms a trusted relationship with you over time.
Speaker 4: It'll be like a confidant, a conciliary there for you
Speaker 4: when you need to make tough decisions, but also a
Speaker 4: chief of staff, you know, scheduling, organizing, prioritizing, booking. Your
Speaker 4: AI is really going to be your digital representation, you know,
Speaker 4: negotiating on your behalf, interacting with other sales AIS that
Speaker 4: are trying to, you know, encourage you to buy something
Speaker 4: and helping you to you know, get a great deal,
Speaker 4: and like for example, it's the whole set of things.
Speaker 5: So, like example, one of the things I just found
Speaker 5: out yesterday is one of our team members at Greylock
Speaker 5: actually in Factor is using Pie for parenting advice. Oh cool, right,
Speaker 5: which is really awesome. And that's the kind of thing
Speaker 5: where you're like, great, but.
Speaker 3: Read why is this an opportunity for a startup?
Speaker 6: Isn't a Microsoft or a Google Bar just a little
Speaker 6: closer to the customer and in a better position to
Speaker 6: offer that.
Speaker 3: Personal digital assistant? Well, part of what's I mean?
Speaker 5: You know, obviously I am on the board of Microsoft
Speaker 5: and you know it is on the board of open Ai.
Speaker 5: And part of the thing is what I love about
Speaker 5: startups is that you have a unique vision where you're
Speaker 5: unfettered by the other aspects of your business and you're
Speaker 5: building it. So part of the idea that Mistafa the
Speaker 5: entire Inflection team, uh you know, kind of came up with,
Speaker 5: and you know, I, you know, have a little bit
Speaker 5: of fingerpas here too, is that IQ is not the
Speaker 5: only thing that matters here.
Speaker 3: EQ matters as.
Speaker 5: Well, And so how do you have this personal intelligence PI?
Speaker 5: Be helpful to you.
Speaker 3: Obviously very high.
Speaker 5: End you know, IQ, but also EQ And that was
Speaker 5: one of the reasons I use the parenting example because
Speaker 5: obviously there's a question of how you do it, but
Speaker 5: it's also how you connect with people what you do
Speaker 5: in order to amblify that, and I think that's one
Speaker 5: of the things that you know, the inflection folks are
Speaker 5: doing better than everyone else.
Speaker 3: So can we talk about the EQ thing?
Speaker 7: Because I was asking, I asked PI what we should
Speaker 7: ask you? It's questions, We're fine, And then I was like,
Speaker 7: are you going to tell them that we had this conversation?
Speaker 7: And it responded, ha ha, I'm just a computer program.
Speaker 7: I can't tell anyone anything. But I assure you our
Speaker 7: conversations are confidential. I do think it's pretty cool that
Speaker 7: we're having this meta conversation about your interview with my creators.
Speaker 7: Amazing point, And it was actually the personality that shocked me.
Speaker 7: Can you explain how you design that?
Speaker 4: I mean, we've deliberately designed it to be patient, curious kind.
Speaker 4: One of the things that first struck us like a
Speaker 4: year and a half ago when we started working on
Speaker 4: this is like, what makes for great conversation when you
Speaker 4: feel that sense of flow and that sense of energy
Speaker 4: and connection with another person. And I think most of
Speaker 4: the time it's when you feel heard and understood. You've
Speaker 4: received a little bit of affirmation. But you know, it's
Speaker 4: not completely sycophantic, right, It doesn't just agree with you
Speaker 4: at every moment.
Speaker 3: It can be a little bit challenging.
Speaker 4: It has boundaries, so you can push it on certain
Speaker 4: topics and it'll take a position, and that's really healthy.
Speaker 3: But also it's just curious, you know.
Speaker 4: I mean, I think many people are excited by the idea,
Speaker 4: especially the users that we have of someone asking them
Speaker 4: lots of questions about the topic that they're interested in.
Speaker 4: You know, we don't always have someone in our lives
Speaker 4: who is as knowledgeable and as passionate about all favorite
Speaker 4: topics as.
Speaker 3: We might like.
Speaker 4: And so that's where pie comes in because it's super
Speaker 4: knowledgeable and engaging.
Speaker 7: So it sounds like a competitor to chat gept.
Speaker 3: Is it a competitor to chat chept?
Speaker 7: And how does that make sense if you're also an
Speaker 7: investor in open ai?
Speaker 5: Well, so I think there's going to be a number
Speaker 5: of agents. I don't think there's going to be one
Speaker 5: agent to rule them all. You know, a ring and mortar.
Speaker 7: But is chatchipt going to rule most of us?
Speaker 3: I mean no, I don't think so. I think that.
Speaker 3: I mean it's partially.
Speaker 5: It's it's it's like the same reason we talk to
Speaker 5: different people for different aspects of our lives. Right, So
Speaker 5: you know, this person we talked to about our passion
Speaker 5: about snowboarding, this person we talked to about what's going
Speaker 5: on in the country, this person we talk to, like
Speaker 5: we have a pantheon, same thing, We'll have a pantheon
Speaker 5: of different kinds of AI. One will go You know,
Speaker 5: you ask chat GPT, you know, how do you know
Speaker 5: comfort a friend who's lost the treasured pet?
Speaker 3: And is us here are five possible ways you might
Speaker 3: do that?
Speaker 5: You ask pie, Oh, that sounds like it's really hard
Speaker 5: for you and your friend. You know your friend, Well,
Speaker 5: what would count as being present there for your friend?
Speaker 5: And it still it has the IQ, it has the
Speaker 5: five reasons, but it goes through that style of going
Speaker 5: through it. And I think these are different interaction experiences
Speaker 5: And the question is which one do you want this minute?
Speaker 5: Which one do you want more in your life? You
Speaker 5: know that kind of thing and part of the design
Speaker 5: of pies. How do we help you be the best
Speaker 5: you right like? And that doesn't mean by being sycophantic,
Speaker 5: for example, that's the question of you know, like, ask
Speaker 5: you questions about what do you think about this, and
Speaker 5: how do you go through it and help you navigate
Speaker 5: your life by being helpful in that way.
Speaker 3: So Sam Allman was just on stage talking as.
Speaker 6: He sometimes does, about the theoretical dangers of AGI and
Speaker 6: chat GPT nine and I'm just curious if you guys
Speaker 6: think generally that's a discussion worth having and where you
Speaker 6: each are on this spectrum of existential data from AI.
Speaker 5: Well, let's start with the fact that one of the
Speaker 5: things that I think is is dangerous about the existential
Speaker 5: discussion is that it blinds us from some of the
Speaker 5: nearer things, which is AI's amplification intelligence as for the
Speaker 5: impromptu book, and so it amplifies human beings, and so
Speaker 5: we see a bunch of good things in human beings.
Speaker 5: AI tutor is AI doctor is a bunch of other things.
Speaker 5: There's also bad human beings, and so what to do
Speaker 5: about bad human beings? Doing you know with AI is
Speaker 5: also part of the portfolio mix of how you shape
Speaker 5: this technology. That's one of the reasons why Mustafa's a book,
Speaker 5: The Coming Wave, I highly recommend, and I will hand
Speaker 5: the next part of the answer.
Speaker 3: Over to you and wait, let me frame it them
Speaker 3: with that. Sam probably left the building right now.
Speaker 6: Frank, like, where do you kind of disagree with some
Speaker 6: of the alarmism notes that he has sounded.
Speaker 4: Look, I think it's easy to speculate around what a
Speaker 4: GPT nine might look like in you know, six more
Speaker 4: orders of magnitude of compute would be eyewatering. And I'm
Speaker 4: absolutely with those concerns around existential risk. But if you
Speaker 4: play that out, that is many, many years, and it is,
Speaker 4: you know, unclear what actually happens at that scale.
Speaker 3: What's much more clear and what you know.
Speaker 4: A lot of the themes I explore in the new
Speaker 4: book is that in the near term, we're about to
Speaker 4: empower many many people, if not ultimately everybody, with access
Speaker 4: to the ability to amplify their existing power. Right, this
Speaker 4: is not just a knowledge engine, but in time it'll
Speaker 4: allow you to take actions. Right, You'll be able to
Speaker 4: make recommendations, buy things, book things, and that's going to
Speaker 4: get smaller and cheaper and therefore proliferate far and wide.
Speaker 4: That is going to cause a dramatic instability and potentially
Speaker 4: a threat to the nation state because anyone who has
Speaker 4: an agenda or is trying to sort of push a
Speaker 4: political outcome is suddenly going to see the barrier to
Speaker 4: entry to that kind of scaled impact lowered. And so
Speaker 4: there's going to be a real question around how states
Speaker 4: kind of manage that distribution of power. And I think
Speaker 4: there'll be a tendency to lunge towards, you know, slightly
Speaker 4: more authoritarian, more surveillance based mechanisms to prevent that proliferation,
Speaker 4: which would both be bad for innovation and obviously dystopian.
Speaker 3: From a political governance perspective.
Speaker 7: Well, hang on, because Sam and I were talking backstage
Speaker 7: as well, and he's much more confident that AI will
Speaker 7: lead us to a more equal world than an unequal world.
Speaker 7: Are you saying that there's a better chance of economic
Speaker 7: dislocation and social dislocation as a result of this technology?
Speaker 4: So both are likely to be true actually, which is
Speaker 4: a little bit surprising. But if you look back over
Speaker 4: the last fifty years, the transistor, the last wave which
Speaker 4: enabled the personal computer, has clearly made us in many
Speaker 4: ways more equal whether you're a billionaire or you earn
Speaker 4: twenty thousand dollars a year, we all get access to
Speaker 4: the same cutting edge hardware. The smart phone and the
Speaker 4: laptop is broadly at the cutting edge, and everyone else
Speaker 4: will catch up over the next five to ten years.
Speaker 4: We're on the same trajectory with respect to access to intelligence,
Speaker 4: and that is an unbelievable idea. Over the next decade,
Speaker 4: hundreds of millions of people and then billions of people
Speaker 4: will get access to the same expert doctor, the same
Speaker 4: expert educator, the same tool for scheduling, prioritizing, organizing your life.
Speaker 4: That is going to be the most meritocratic moment in
Speaker 4: the history of our species.
Speaker 3: For sure.
Speaker 4: It is a question around how individuals and groups and
Speaker 4: organizations use that power right, because clearly we all have
Speaker 4: conflicting agendas and priorities and goals. And that's basically where
Speaker 4: I think that we end up with significant disruption.
Speaker 3: Okay, read, but that's the class have.
Speaker 6: Full I mean, what is the potential thread to the
Speaker 6: millions of coders, of customer service representatives, the job dislocation,
Speaker 6: the people who are serving jobs whose functions can be
Speaker 6: replaced by AI.
Speaker 8: Your LinkedIn hat on.
Speaker 5: So the closest metaphor that I've come to use to
Speaker 5: describe this moment is it's a steam engine of the mind.
Speaker 5: If you look at this, the former steam engine, you know,
Speaker 5: current steam engine, although obviously majorly amplified. Industrial evolution give
Speaker 5: us superpower of muscles, super of transport, superpower of construction,
Speaker 5: all these ends.
Speaker 3: Now we're going to have superpowers of the mind.
Speaker 5: Now there's a whole bunch of very positive things that
Speaker 5: come out of that.
Speaker 3: I mean, all of the things we have of.
Speaker 5: The increase in wealth that allows medicine, general education, everything
Speaker 5: else comes out of the industrial evolution. I think the
Speaker 5: same thing will be coming out of the steam engine
Speaker 5: of the mind now. But the transition is going to
Speaker 5: be difficult. The transition is going to be okay, well,
Speaker 5: customer service jobs are going to change a whole lot now, engineers,
Speaker 5: I think, you know, look, if you roughly kind of
Speaker 5: go through a company and you go we ten x
Speaker 5: each function, you say you ten x salespeople, great, so
Speaker 5: I want to hire more salespeople want our sales ten
Speaker 5: XT marketing people. It's like, okay, maybe the marketing functions
Speaker 5: will change some so less order entry, more thinking about it.
Speaker 5: But you're still in a business competitive ecosystem. You don't
Speaker 5: want to stop marketing or not be doing it. When
Speaker 5: you get to customer service, you get more replacement. But
Speaker 5: here's part of the thing that I part of the
Speaker 5: reason why I did the book impromptu and are trying
Speaker 5: to orient people, is like, okay, so customer service people.
Speaker 3: There's going to be a transition. Well, AI can help
Speaker 3: with that.
Speaker 5: You can build AIS that help figure out other kinds
Speaker 5: of work and jobs, that can help you find them,
Speaker 5: that can help you learn them, that can help you
Speaker 5: do them. And so that's the thing that we as
Speaker 5: a society need to be doing. So it's like less
Speaker 5: like how do we slow down AI? How do we
Speaker 5: shape it to help the broad swath of humanity in
Speaker 5: this transition. That's where I'm trying to get the dialogue
Speaker 5: and discussion to Moustafa.
Speaker 7: We were just talking to Sam about Google and whether
Speaker 7: or not it's still scary, and he's like, yeah, they're
Speaker 7: still formidable. You quit Mind and Google AI and obviously
Speaker 7: a lot of people have have have left Google. Is
Speaker 7: there something wrong at Google or some sort of innovator's
Speaker 7: dilemma there that will prevent it from truly succeeding on
Speaker 7: generative AI because it underminds its own business model.
Speaker 4: Look, fundamentally, AI stands intention with Google's existing business model.
Speaker 4: It's very hard to eat yourself from within and adapt
Speaker 4: and respond to the coming wave. So for a while
Speaker 4: Google was just idling. You know, I was there on Lambda.
Speaker 4: We had chat GBT before chat gibt. It was just
Speaker 4: like a remarkable feeling internally playing with this incredible tool
Speaker 4: and not really being able to get it out into products.
Speaker 4: It took, you know, the launch of chat CBT to
Speaker 4: kind of threaten Google and really shake everything up. And
Speaker 4: you know, Google's are very formidable and you know, you know,
Speaker 4: organization full of super smart people. So I'm sure they'll
Speaker 4: be just fine. But I can understand why they're stuck
Speaker 4: because nobody wants a personal AI in your pocket that
Speaker 4: is actually funded by ads. Right, you don't want a
Speaker 4: salesman in your pocket that is trying to persuade you
Speaker 4: to go and buy more or do xyz.
Speaker 3: You need fiduciary alignment.
Speaker 4: Right, Your AI has to be on your team, and
Speaker 4: that means ultimately you have to pay for it. And
Speaker 4: if somebody else is paying for it, you have to
Speaker 4: ask yourself what are they trying to persuade you of?
Speaker 4: Are they trying to influence you in some way? And
Speaker 4: I think people are alive to that now and that's
Speaker 4: a real challenge for Google because it's very unclear how
Speaker 4: they're going to manage this transition.
Speaker 7: So we asked Sam if Google scares him, does OpenAI
Speaker 7: scare you?
Speaker 8: Wastaf a first many.
Speaker 4: So no, No, it definitely doesn't. I mean, actually, this
Speaker 4: morning we've announced our new large language model called Inflection one,
Speaker 4: and we set out to build a model that was
Speaker 4: fast enough and more capable than every other model on
Speaker 4: the market for our compute class. So we're very proud that,
Speaker 4: you know, a year on from our launch, we're now
Speaker 4: better than lama Chat, GPT, Palm five forty, Chinchilla, all
Speaker 4: of the other models of our size. And that's super
Speaker 4: important because it powers PI and ultimately it will be
Speaker 4: available as a conversational API, so you can obviously play
Speaker 4: with it at pie dot ai now. And you know,
Speaker 4: I think that demonstrates that with a team of thirty
Speaker 4: five people, you know, in a pretty short order, we're
Speaker 4: able to exceed the cutting edge and now build an
Speaker 4: absolute best in class AI, which is very exciting. And
Speaker 4: obviously we've also managed to do that because we've been
Speaker 4: able to gather a huge amount of capital and some
Speaker 4: great investors and train. In fact, what we now have
Speaker 4: is the largest operational cluster in the world of h
Speaker 4: one hundreds in Vidia's latest chip and that's a huge advantage.
Speaker 3: Okay.
Speaker 5: And one of the things, because I was listening to
Speaker 5: your conversation with Sam, and you know, it's obviously an
Speaker 5: awkward question when you ask him, is like, well, should
Speaker 5: we trust you? Because it's like, yes, trust me. It's like, well,
Speaker 5: that's weird because if.
Speaker 3: Someone says no, you shouldn't.
Speaker 5: Someone says yes, trust me, You're like, well wait a minute,
Speaker 5: but look, I uh, the Open Eye people are really
Speaker 5: great people. I think it's it's governed by a five
Speaker 5: to one C three. There's frequently a bunch of fud
Speaker 5: social media stuff that that that that that that kind
Speaker 5: of obscures that I you know, spent a number of
Speaker 5: years on the board and in the team. I still
Speaker 5: work with them and help them. They are fully paying
Speaker 5: attention to every serious question. I mean, like, for example,
Speaker 5: there Sam went and spent a month. It's crazy, You're
Speaker 5: doing a startup. It spent a month doing a world tour.
Speaker 3: Talking to people.
Speaker 5: Say look, I'm here, you can talk to me about
Speaker 5: your concerns. I want to make sure it's good for humanity.
Speaker 5: I don't just care about this kind of US San
Speaker 5: Francisco text scene.
Speaker 3: I care about what it's impact on humanity is.
Speaker 5: And so I have come here to talk to you,
Speaker 5: So that kind of like.
Speaker 3: I'm engaging conversation.
Speaker 5: I care about this is the kind of reason in
Speaker 5: addition to a five ones three emission structure and everything else.
Speaker 3: And so no, I'm I'm delighted with Hope.
Speaker 6: I don't see how he's getting any work done with
Speaker 6: all this, But I want to change gears quickly. We're
Speaker 6: going to throw some Twitter polls up on the screen
Speaker 6: today and we asked Twitter users where the greatest advancements
Speaker 6: in AI would come from.
Speaker 3: We'll see the results, But I want to ask.
Speaker 6: About maybe retarting with you are the US China policy
Speaker 6: of divestment is, can we reasonably hope that you know,
Speaker 6: doing that will maybe prolong America's advantage in AI?
Speaker 5: Is it a smart strategy? I don't think divestment is
Speaker 5: a smart strategy. I think staying connected is better for
Speaker 5: both the US and China and the world. I think
Speaker 5: competition is very good.
Speaker 3: I think the fact that there's various ways that we
Speaker 3: in the.
Speaker 5: US and the West Coast have a AI lead, I
Speaker 5: think that's a great thing for kind of the values,
Speaker 5: the ecosystem and the kind of the great world order
Speaker 5: that the US should be very proud of in the
Speaker 5: last seventy years. Like, there's lots of things to be
Speaker 5: critical of two, of course, but as a really peaceful time,
Speaker 5: trying to make it business and interconnection is a really
Speaker 5: good thing. And I'm a very strong believer and proponent
Speaker 5: of that. But I think investments not the.
Speaker 6: Ends half of You write in the book that China
Speaker 6: has an explicit national strategy to be the AI leader
Speaker 6: by twenty thirty.
Speaker 3: So do you agree with read that withdrawal divestment as
Speaker 3: a smart strategy.
Speaker 4: I mean, China is already ahead of its own schedule.
Speaker 4: I mean it's publishing significantly more papers on AI than
Speaker 4: we are collectively in the rest of the world. So
Speaker 4: you know, I do think that our export controls were
Speaker 4: effectively a declaration of economic war on China. They were
Speaker 4: very firm and very aggressive and I think it sets
Speaker 4: us out on a hyper adversarial footing. They have a
Speaker 4: huge number of leavers too, and we should expect them
Speaker 4: to use them against us pretty soon, unfortunately.
Speaker 7: So we talked a lot about regulation with Sam, and
Speaker 7: obviously President Biden was just in town here this week
Speaker 7: talking about AI. He met with you know, the President
Speaker 7: and Sindar and Satya in DC. What is the prospect
Speaker 7: for real government oversight that protects users, protects the economy
Speaker 7: and our political process.
Speaker 5: So, look, I think the good news is that the
Speaker 5: administration is taking a very Let's learn how to be
Speaker 5: smart about this. Let's assemble a set of thoughtful people
Speaker 5: from industry yesterday, assembling a thoughtful people from outside of industry, academia,
Speaker 5: other kinds of places.
Speaker 3: We're doing it, and let's learn about it.
Speaker 5: I think they have a number of good people tasked
Speaker 5: with this, and so I'm optimistic in that. But on
Speaker 5: the other hand, of course, a little bit like your
Speaker 5: interview with Say, I'm you know, regulatory things is something
Speaker 5: that's very easy to get wrong. So you need to
Speaker 5: be cautious about how you do it. You want it
Speaker 5: to be having that positive impact, not for example, regulatory
Speaker 5: capture and not a bunch of other things, and so
Speaker 5: I think you have to be careful about how you do.
Speaker 4: I think it's adding that this time last year, almost
Speaker 4: no world leaders were talking about AI. I mean, I
Speaker 4: don't think there has ever been a technology trajectory in
Speaker 4: history that has gone from zero recognition to almost universal recognition.
Speaker 3: And that's a good thing.
Speaker 4: And I think it's in part because sort of we
Speaker 4: collectively in industry have been trying to advocate and say, like,
Speaker 4: this is really serious, we should pay attention and invite
Speaker 4: the conversation wherever it ends up with respect to regulating
Speaker 4: existential risk or more near term threats.
Speaker 6: Okay, I think we have to leave it there and
Speaker 6: Shaper really thank you guys for joining us.
Speaker 5: Great to see you guys, Thanks a lot, great to see.
Speaker 2: Greylock Partners, Reid Hoffman, the STAFFA Sillyman, the co founder
Speaker 2: and CEO of Inflection AI. They're here at the Bloomberg
Speaker 2: Technology Something in San Francisco, Caroline so much to recap.
Speaker 2: What they kind of had in common was the idea
Speaker 2: that AIS a technology amplifies or reflects the user, and
Speaker 2: in society there are good people and they are a
Speaker 2: bad people, but they you know, they weren't tempted to
Speaker 2: give kind of the doomsday scenario that perhaps Outman gave
Speaker 2: us earlier.
Speaker 1: And also the EQ versus IQ. This is obviously the
Speaker 1: differentiating factor for PIE what they're currently working on and inflection,
Speaker 1: but notable that they don't feel that there's just one
Speaker 1: chatbot to rule us all that chatchipt isn't going to
Speaker 1: be the steadfast and only use case. And already we're
Speaker 1: discussing that it feels like chatchapbet is sort of sucktible
Speaker 1: the oxygen.
Speaker 8: But we know there's barred.
Speaker 1: We know that there's obviously all these other more focused,
Speaker 1: specific AI chatbots being developed, and some with perhaps more
Speaker 1: emotion than others.
Speaker 2: In Yeah, and Masafa Silliman describing AI development as a
Speaker 2: meritocracy was interesting. Let's get back to the Bloomberg Technology
Speaker 2: Summit where Bloomberg's Bradstone is on stage with the Amazon
Speaker 2: Web Services AWS CEO Adam Selipsky.
Speaker 9: Well, I mean, as you implied, today, we are by
Speaker 9: far the most broadly adopted cloud in the world, with
Speaker 9: the broadest set of capabilities, and I think that generative
Speaker 9: AI is both incredibly explosive and transformative set of technologies
Speaker 9: in of itself, and it's fully dependent on the.
Speaker 8: Cloud to be successful.
Speaker 9: So if you look at the massive amount of compute
Speaker 9: that's required, never mind any other IT related stuff, but
Speaker 9: just the massive amount of compute required that's going to
Speaker 9: happen really predominantly in the cloud, and companies are going
Speaker 9: to want to view gener AI as part of an
Speaker 9: entire data strategy and data platform. And you're going to
Speaker 9: want to do your generative AI you know where you've
Speaker 9: got your data. And you're also going to want the
Speaker 9: same bulletproof enterprise security privacy that you expect from any
Speaker 9: other cloud service. And because so many customers it's certainly
Speaker 9: more than on any other cloud, have that data on AWS,
Speaker 9: use aabus for security and operational excellence. I think that
Speaker 9: they are going to justifiably demand that AWS have a full, powerful,
Speaker 9: a suite of generative AI services.
Speaker 6: Okay, but do you need a popular LM or an
Speaker 6: exclusive partner running on AWS as it does seem like
Speaker 6: microsoftening Google have. I mean, I guess I'm asking who's
Speaker 6: your horse in the race right now?
Speaker 9: Right Well, I think, with all due respect, I think
Speaker 9: that's the wrong question. It'd be like in nineteen ninety seven,
Speaker 9: when the Internet's happening and everything's kind of going nuts
Speaker 9: around us. You and I sitting around saying who's the
Speaker 9: internet company going to be? It kind of seems like
Speaker 9: a silly question, right, And by the way, the leading
Speaker 9: search company then was Alta Vista, and I guarantee you
Speaker 9: my kids in their great I.
Speaker 8: Love it of Alta Vista.
Speaker 9: So it's not okay you're in a We're who's ahead,
Speaker 9: which runners ahead in the race after three steps because
Speaker 9: it's a ten k race. You know, what everybody needs
Speaker 9: now is is experimentation. They need choice, They need democratization
Speaker 9: of generative AI. And just like AWS was founded to
Speaker 9: democratize it, we aim to democratize generative AI. So we're
Speaker 9: operating at all layers of stack we have. We've had
Speaker 9: our own custom chip program for a decade now, way
Speaker 9: longer than anybody else, and we have not one, but
Speaker 9: two families of chips custom designed for machine learning training
Speaker 9: for training and inferential for running inference and then and
Speaker 9: so those are for people who are going.
Speaker 8: To build models, train models.
Speaker 9: Then most of our customers will interact with Amazon Bedrock,
Speaker 9: which is a managed service for accessing deploying managing models,
Speaker 9: and here's where the choice comes in. So we are
Speaker 9: going to have our own models, our own lllms. So
Speaker 9: Amazon models lms have been running introduction inside of Amazon
Speaker 9: for a long time now. Parts of our retail search
Speaker 9: are powered by llms. A lot of Alexa's voice responses
Speaker 9: are lll em powered, and we're taking right now, we're
Speaker 9: in the process of taking those lllms. We're making them bigger,
Speaker 9: we're externalizing them, and later this year those will be
Speaker 9: exposed for everybody to use.
Speaker 8: A Titan broke exactly.
Speaker 9: Well, let me ask you so, mate, But that's just
Speaker 9: one model, one set of models.
Speaker 8: I should say.
Speaker 9: We're also exposing anthropic inside of Bedrock Stability AI AI
Speaker 9: twenty one, and I think a lot of others over time,
Speaker 9: because nobody knows. Anybody who knows which model is going
Speaker 9: to be the winner is asking the wrong question. People
Speaker 9: need to experiment, and we want to provide that choice.
Speaker 3: Okay, so pretend you're talking to a customer.
Speaker 6: Now make the argument, why should they use Titan or
Speaker 6: one of these other lfs you're exposing rather than GPT four,
Speaker 6: which now does seem to have a significant.
Speaker 9: Leadership position well, I don't know which model they should
Speaker 9: depends who they are, and it depends what their application is.
Speaker 9: And some of them probably will want to use GPT,
Speaker 9: and some of them will want to use Titan, and
Speaker 9: some of them will want to use Anthropic. And I
Speaker 9: think it's preposterous to me to think that one model
Speaker 9: or one company is going to be the solution for
Speaker 9: every application and every company up there. So we're already
Speaker 9: seeing this heterogeneity. So we're seeing an explosion of interest
Speaker 9: in Bedrock and Amazon's genitive AI capabilities. Just this morning, Omnicom,
Speaker 9: one of the largest advertising communications firms in the world,
Speaker 9: announced they're working with the AWS using Bedrock as well
Speaker 9: as our custom chips inside of our compute capacity to
Speaker 9: do generative AI going forward. Earlier this week, BBVA, one
Speaker 9: of the largest financial services firms in the world, announced
Speaker 9: they're working with Amazon on jenera of AI, you know,
Speaker 9: with Bedrock. And it's that choice combined with the enterprise
Speaker 9: security and privacy, which I think are so fundamental.
Speaker 6: I can humbly admit, as a journalists covering tech for
Speaker 6: way too long that in the fall I was surprised
Speaker 6: by not only the quality of check GBT but the
Speaker 6: customer response to this new wave of technology, were you surprised?
Speaker 8: Well, I think that.
Speaker 9: I mean, folks working in the area and AI have
Speaker 9: known about large language models for a long time, and
Speaker 9: very few companies have more experience with AI than Amazon.
Speaker 9: I mean, nineteen ninety eight personalization on the Amazon website
Speaker 9: that was AI.
Speaker 8: Okay, still hold AI.
Speaker 9: Sage Maker twenty seventeen not used by over one hundred
Speaker 9: thousand AWS customers. Most machine learning in the cloud, any cloud,
Speaker 9: happens on stage Maker, so we have a lot of
Speaker 9: experience with a lot of people working on llms. I
Speaker 9: think the whole world was surprised that when three point
Speaker 9: five came out, it was such a dramatic improvement and responses.
Speaker 9: Not perfect by any means, but a dramatic improvement and
Speaker 9: responses over three point zero. So I think that was
Speaker 9: the surprise, but not the overall arc.
Speaker 3: But the.
Speaker 9: Good news for our customers is that you know, we
Speaker 9: have deep, deep expertise and Ai've been working on different
Speaker 9: forms of it for a long time and are now
Speaker 9: pouring enormous resources into the generative part of it.
Speaker 6: Okay, I'll give this up after this, I promise, But
Speaker 6: would you can see that Amazon's playing a little bit
Speaker 6: from behind right now.
Speaker 9: No, I really don't think so. I mean again, it's
Speaker 9: the race analogy. If like, are we really going to
Speaker 9: have a conversation about three steps into a ten k raise?
Speaker 9: You know who's in what position. It's about the long term.
Speaker 9: Amazon has always taken a much more long term view
Speaker 9: of the world than almost any other company we're I
Speaker 9: think the key is we're building in multiple layers of
Speaker 9: the stack because we understand that's what customers need. We're
Speaker 9: also building applications on top of these models. So we've
Speaker 9: released code Whisperer, which is a coding companion on top
Speaker 9: of the Amazon LLLMS, and that's a you know, you
Speaker 9: type in words, it gives you back code in internal
Speaker 9: tests kind of coding challenges. Developers finish their task on
Speaker 9: average fifty seven percent faster than those not.
Speaker 8: Using code Whisperer.
Speaker 9: Plus, it's very secure, private tells you what open source
Speaker 9: you're using and what licensing restrictions there might be on it,
Speaker 9: which not every other solution out there does. So I
Speaker 9: think we're very confident. If you look at the thing
Speaker 9: which the only thing which ought to give us confidence,
Speaker 9: This customer response. I mentioned Omnicom, I mentioned BBVA. This week,
Speaker 9: Old Mutual, which is one of the largest financial services
Speaker 9: companies in Africa, is going all in on AWS and
Speaker 9: using US for generative AI and really exciting developments to come.
Speaker 9: We're talking to one company who has millions of lines
Speaker 9: of mainframe code and they're talking to us about, you know,
Speaker 9: moving over these really gnarly mainframe applications and millions of
Speaker 9: lines of code using generative AI from from from from AWS.
Speaker 9: So I think, you know it's it's the this this
Speaker 9: consumer application, this chat application, which is so easy for
Speaker 9: folks to understand because they can say, give me a
Speaker 9: hikup about you know, farm machinery and does it.
Speaker 3: That's keol hai cod.
Speaker 8: It's cool.
Speaker 9: But uh, you know what I think folks in this
Speaker 9: room and watching online understand is that there is a
Speaker 9: full suite of enterprise and company and organizational applications and
Speaker 9: there's going to be huge needs there. And so you know,
Speaker 9: we're going to be focused on customer service and on coding,
Speaker 9: and on drug discovery and on wealth management, providing better
Speaker 9: solutions for customers and a full suite of applications across
Speaker 9: every industry. And I think we're very well positioned there and.
Speaker 6: You feel like you have or are close to having
Speaker 6: a GPT four quality.
Speaker 3: Model running on AWS.
Speaker 9: All of the tests that we've done, as well as
Speaker 9: more and more customers who are in who are in
Speaker 9: the existing current preview of Bedrock, have been very impressed
Speaker 9: with the quality of our models. And of course, again
Speaker 9: it's not just about our models. We're going to be
Speaker 9: proud of our models, I predict, but Anthropic does an
Speaker 9: amazing job and they're you know, right up there in
Speaker 9: quality with any.
Speaker 8: Model in the world.
Speaker 9: Stability AI big leader for generating for models, generating images,
Speaker 9: so collectively, I think these models will provide absolutely the
Speaker 9: best destination, all with a consistent aid PI set, consistent
Speaker 9: AWS security, consistent identity system, all in a private, isolated,
Speaker 9: virtual private cloud, none of this. Hey, here's an application,
Speaker 9: and now you have to have a bunch of fortune
Speaker 9: five hundred CIOs a ban from their companies, which is
Speaker 9: what's happened. You know, from day one it's always going
Speaker 9: to be AWS class security.
Speaker 6: Okay, I want to put a slide up showing a
Speaker 6: Bloomberg Intelligence estimate on projected generative AI revenues over.
Speaker 3: The next, I think it's maybe.
Speaker 6: Ten, yeah, five years, I'm not saying, and who knows
Speaker 6: what you know about the numbers that far out, but
Speaker 6: it's up into the right and I just I can
Speaker 6: imagine a lot of financial types who are out there,
Speaker 6: you know, looking at Amazon's numbers and wondering how much
Speaker 6: of a sales tailwind this will be for AWS. So
Speaker 6: what can you tell us about you know, you mentioned
Speaker 6: it's so computationally intensive, what you see the impact being
Speaker 6: for AWS?
Speaker 9: Well, it's it's really early, so you know, I prognostication
Speaker 9: is fun and probably important at the end of the day,
Speaker 9: but I think it's also important to be humble and
Speaker 9: to be nimble anything ending in ill and to understand
Speaker 9: that we're going to have to all adjust rapidly. But
Speaker 9: that being said, I think that well, look, I don't
Speaker 9: think any of the fundamentals about cloud computing have change,
Speaker 9: and probably who knows, call a ten percent of it
Speaker 9: has moved to the cloud. So we're still very very early,
Speaker 9: and whether you're talking about any application, there's still you know,
Speaker 9: massive runway for things to move to the cloud, and
Speaker 9: we firmly believe that they will. On top of that,
Speaker 9: I think that generative AI is going to be, you know,
Speaker 9: the next massive increase in workloads you know, moving to
Speaker 9: the cloud or in many cases happening for the first
Speaker 9: time and happening in the cloud. And so I do
Speaker 9: think that it should be a significant tailwind for cloud
Speaker 9: providers and particularly for AWS, given our leadership position. Obviously
Speaker 9: we need to come out with the capability the services
Speaker 9: that you know, justify people using us for the purpose.
Speaker 9: But I think if we you know, if we do
Speaker 9: a good job of listening to customers, it should provide
Speaker 9: significant demand for years to come. I mean, the computational
Speaker 9: requirements are so intense. And one thing which also I
Speaker 9: think works in favor of AWS is that a lot
Speaker 9: of people asking about, hey, what about the energy consumption?
Speaker 9: You know, what about sustainability?
Speaker 3: You run those efforts inside Amazon.
Speaker 9: Yeah, I mean I also run sustainability. It's kind of
Speaker 9: the other thing I do inside of Amazon, and we
Speaker 9: as a company, and I personally care a lot about sustainability.
Speaker 9: And people say, well, you know, is this generative AI
Speaker 9: massive compute.
Speaker 8: Is that incompatible?
Speaker 9: Yeah, we're going back for sustainable Well no, we're not,
Speaker 9: because number one of these workloads, you know, there's no
Speaker 9: putting the genie back in the bottle. So generative AI
Speaker 9: is going to happen, So let's make it happen in
Speaker 9: a highly energy efficient and sustainable way. So if you
Speaker 9: look at our custom chips that we design, if you
Speaker 9: take Graviton for example, which is our oldest chip family,
Speaker 9: Graviton is sixty percent more energy efficient than equivalent X
Speaker 9: eighty six based compute capacity. And if you look at
Speaker 9: an enterprise just in general, nevermind generative AI, just moving
Speaker 9: from their own data centers to the cloud to AWS.
Speaker 9: There was a study done showing that AWS is three
Speaker 9: point six times more energy efficient than the average enterprise
Speaker 9: data center in the United States. So you know, we
Speaker 9: are the sustainable place. We're doing it through a whole
Speaker 9: series of technological improvements plus a commitment which were eighty
Speaker 9: five percent of the way. They're already to be one
Speaker 9: hundred percent renewable energy by twenty twenty five, which is
Speaker 9: just around the corner, right.
Speaker 6: You guys had another commitment called Shipman zero, which was
Speaker 6: a net carbon zero commitment by twenty thirty, which you guys,
Speaker 6: I guess maybe scrapped or you took off the website. Yeah,
Speaker 6: has a long time Amazon watcher, My heart just kind
Speaker 6: of sank because you guys have been so prominent about
Speaker 6: these goals. I guess the question is, like, have these
Speaker 6: commitments become harder to meet than they were to make?
Speaker 9: Well, I think your heart should be sinking at the
Speaker 9: state of global warming state good line is, and we
Speaker 9: should all be concerned about that, But I think your
Speaker 9: heart should be singing at the leadership position that Amazon
Speaker 9: is trying to establish, and at the improvements we're trying
Speaker 9: to make, at the very public goals we've set.
Speaker 3: Why don't you remove that particular commitment.
Speaker 9: So well, because it's subsumed really in a much broader
Speaker 9: Boulder commitment. We made a very public pledge to be
Speaker 9: net zero carbon across all of Amazon, not just State WS,
Speaker 9: all of Amazon by twenty forty, which is ten years
Speaker 9: ahead of the Paris Accords. Now, for a technology company
Speaker 9: like AWS, I won't say it's easy, but it's it's doable,
Speaker 9: so you'll hear that from other tech companies. For a
Speaker 9: big retailer with air freight and inbound transportation and stores
Speaker 9: and packaging, it is actually really, really hard, and we
Speaker 9: will be the first to say we don't know how
Speaker 9: we're going to get there in all dimensions. I can
Speaker 9: tell you how we're going to get their renewable energy.
Speaker 9: I can't tell you how we're going to get there
Speaker 9: in all elements of transportation and packaging and buildings. But
Speaker 9: we're an innovative company. We take bold, long term bets,
Speaker 9: and we made this pledge publicly, not privately, in order
Speaker 9: to number one, you know, have a forcing function for
Speaker 9: ourselves because it's not easy, and also because we want
Speaker 9: to inspire other organizations, governments, companies to join us. We
Speaker 9: have over four hundred signatories now of the Climate Pledge
Speaker 9: that's growing every month. And it's not a competition against
Speaker 9: other organizations. It's competition against the thermometer. And frankly, I
Speaker 9: want other people to out innov us and out innovate us.
Speaker 9: I want to be beaten, if you will, in the
Speaker 9: race to become sustainable, and hopefully we can be inspired
Speaker 9: by things that other people are doing. So of course
Speaker 9: we adjust our goals over time, but the thing I
Speaker 9: would focus on is just audacious goal to be nets
Speaker 9: or a carbon by twenty.
Speaker 3: Eight and have to line in the sand.
Speaker 6: I mean, even as things like generative AI take more
Speaker 6: and more computational resources. Even if you get more efficient
Speaker 6: with compute, that's a commitment that you can hold firm on,
Speaker 6: even if you don't know how you're going.
Speaker 3: To get there.
Speaker 9: We have made a public pledge we intend on getting there,
Speaker 9: But there are lots of other areas of progress from
Speaker 9: making in the interim. So, for example, if you take
Speaker 9: packaging for the retail business, the average packaging per shipment
Speaker 9: has decreased by thirty eight percent since twenty fifteen, so
Speaker 9: which is another example of it can be sustainable and
Speaker 9: good for our business. You know, it's lower cost for us,
Speaker 9: and it's much more sustainable for the planet. And anytime
Speaker 9: you create a win win like that, it just works
Speaker 9: for everybody and becomes a really sustainable business proposition.
Speaker 3: Let's get back to AI and let me ask.
Speaker 8: You about Alexa.
Speaker 6: I know it's slightly out of your purview, but Alexa
Speaker 6: runs in your servers.
Speaker 3: Can Alexa be a generitive AI play? Should it be?
Speaker 9: Alexa's already, as I mentioned, are ready powered in large
Speaker 9: part by lllms that Amazon built and been in production
Speaker 9: for a while now, and I think that she's only
Speaker 9: going to get smarter and better and more personalized as
Speaker 9: the lll M technology expands and improved, it.
Speaker 6: Feels to me as a long time user, and my
Speaker 6: wife who's here knows I populated our house with them
Speaker 6: at one point, but today it feels as the SERI
Speaker 6: frankly a step behind.
Speaker 3: Is that? Would you agree with that? No?
Speaker 9: I think that Alex will I use Alex in my house.
Speaker 9: I mean, you know, I guess we all have different
Speaker 9: strokes for different folks, and we love Alexa and I
Speaker 9: like to think she loves us, although if you ask
Speaker 9: me that, she won't actually tell you yes. And I
Speaker 9: think Alex has been getting better and better, you know,
Speaker 9: more skills, better skills, more understanding of you and your
Speaker 9: your your likes and dislikes in your habits. And I
Speaker 9: think that the the rapid improvements that we're making in
Speaker 9: Generative AI are truly going to continue to transform Alexa
Speaker 9: into you know, a truly you know, personalized assistant. And
Speaker 9: we do on Alexa to be you know, an absolutely
Speaker 9: indispensable invest in the world, you know, personal assistant to you.
Speaker 8: And I think that we've got a lot of work
Speaker 8: to do.
Speaker 9: I'll leave it to the Alexa folks to fill in
Speaker 9: all of those blanks.
Speaker 8: Over time.
Speaker 9: But we're actually very confident in that plan and very
Speaker 9: optimistic about Alexa being able to fulfill that role in
Speaker 9: people's lives that I think they're really going to love.
Speaker 3: I want to get to two more in the two
Speaker 3: minutes we have left. Your Boston predecessor.
Speaker 6: Andy Jassey has been kind of cutting some of the
Speaker 6: big bets at Amazon, but one that he hasn't cut
Speaker 6: is the satellite plan Kuiper, and I just wonder, you know,
Speaker 6: what you see as the opportunity considering a rival system
Speaker 6: stirling from Tesla, it does seem to be, you know, operational,
Speaker 6: quite far ahead.
Speaker 9: Well, we're very optimistic about Kuyper. There's huge interest from governments,
Speaker 9: from enterprises, from lots of other organizations. Billions of people
Speaker 9: around the world are underserved for Internet, and Kuyper really
Speaker 9: aims to democratize that. There's a theme here to democratize
Speaker 9: that and provide great Internet service to so many billions
Speaker 9: under serve people. In addition, whether it's automobile companies, telecommunications companies,
Speaker 9: lots of other enterprises who are AWS customers, governments. They want,
Speaker 9: especially from remote locations, be able to backhaul information up
Speaker 9: to Kuyper back into the AWS cloud, and so I
Speaker 9: think as we launch our first satellites, which as coming
Speaker 9: up later this year and then really ramping up in
Speaker 9: twenty twenty four and twenty twenty five is my understanding.
Speaker 9: But then being in service in that timeframe initially and
Speaker 9: being able to deliver that for AWS customers is huge.
Speaker 9: Before we go, I just want to remind folks that
Speaker 9: just today this morning, AWS has launched its one hundred
Speaker 9: million dollar Generative AI Innovation Center, where we're going to
Speaker 9: be going out to all those customers around the world,
Speaker 9: enterprises with expertise free a BOS expertise, solutions, architects, engineers, strategists, uh,
Speaker 9: and working with them one on one to envision design
Speaker 9: and then actual that one hundred million AI generative AI
Speaker 9: capabilities not talk, but actually.
Speaker 10: That discounts for new companies or Yeah, we're gonna, we're
Speaker 10: just gonna, We're just gonna bring our internal a WOS experts,
Speaker 10: you know, free of charge to a whole bunch of
Speaker 10: AWS customers, uh, you know, focusing.
Speaker 9: On folks with with with a significant AWS presence and
Speaker 9: go help them turbocharge their efforts to get real with
Speaker 9: generative AI, get beyond the talk all.
Speaker 6: Right last one in negative ten seconds, So I guess
Speaker 6: it's gotta be a quick one.
Speaker 3: You and Andy are both in the same situation.
Speaker 6: You're the You're the guy after the guy, the founder
Speaker 6: whose name was synonymous with the early stage of legendary growth.
Speaker 3: So what is what do you want adams aws legacy
Speaker 3: to be? I don't think.
Speaker 9: I don't really think of it in personal terms, to
Speaker 9: be honest with you, so I don't have a canned answer,
Speaker 9: but I will say that, you know, I would love
Speaker 9: it if.
Speaker 8: If I could be known to really help.
Speaker 9: Drive a business that is, you know, constantly, no matter
Speaker 9: how big it gets, no matter how far flowing it gets,
Speaker 9: puts customers at the very center of what we're doing,
Speaker 9: always puts customers interests, you know, before anybody else's interests.
Speaker 9: Yet at the same time, an is an empathetic, equitable,
Speaker 9: fun and innovative place for employees to work.
Speaker 3: All right, Adam Flipski, thank you for joining us.
Speaker 11: Thank you.
Speaker 1: Amazon Web Services CEO Adam Slipsky there in conversation with
Speaker 1: Rimberg's at Bradstone and highlighting some of the news that
Speaker 1: has just come out. Of course, the fact that Amazon
Speaker 1: is spending one hundred million dollars to teach cloud clients
Speaker 1: about AI's saying to get real. Basically, some of the
Speaker 1: early stage clients are going to be high Spot Twilio.
Speaker 1: They're going to be really using some of these customized
Speaker 1: applications and understanding how to get this expertise to ensure
Speaker 1: that they are adopting generator of AI at the rapid rate.
Speaker 1: But we heard there from Adam Slipsky also about the
Speaker 1: focus on being carbon new, focused on of course climate
Speaker 1: and how you twin that with the enormous compute power
Speaker 1: that is necessary. As we dive into the whole world
Speaker 1: of lage language models of more general to AI, the
Speaker 1: chips necessary, the compute power and ultimately what that affects
Speaker 1: the climate. Conversation just keeps coming.
Speaker 3: We're going to talk chips.
Speaker 1: Next Technology summit is with our very own ed Lavelow
Speaker 1: some exam Qualcom Presidentcy Crisciano.
Speaker 2: Our answers the question is crowcommon AI company?
Speaker 12: Look, this is a this is a great question to ask,
Speaker 12: and you know it's it's incredible to see all of
Speaker 12: the development you see right now on on AI. Here's
Speaker 12: here's how I answered that question. Actually, it's very simple, Uh,
Speaker 12: if you think about the AI, when you think about semiconductor,
Speaker 12: it's really accelerating computing. You do a lot of computation,
Speaker 12: and what we see what you can do with those
Speaker 12: large language models, large models for him is in videos.
Speaker 12: So if you think about the history of computing, computing
Speaker 12: starts in the cloud and he gets scale at the edge.
Speaker 12: I think that's that's what happens with CPUs, That's that's
Speaker 12: what happens with all other form of computing. And I
Speaker 12: think the smartphone is a great example of that. If
Speaker 12: you look, the largest computing platform ever developed is the
Speaker 12: smartphone right now. It's the largest development platform for mankind.
Speaker 12: And and what is good about the smartphone, it's, uh,
Speaker 12: it's a device that I'm with you all the time.
Speaker 12: So if AI becomes pervasive, which we believe it will
Speaker 12: become pervasive, especially when you look about how those large models,
Speaker 12: they are very natural, how you you can converse with them,
Speaker 12: they have contextual information and all of those things that's
Speaker 12: going to happen at the edge.
Speaker 11: So that's how you think about qualcomm.
Speaker 12: If AI is going to get scale, you're going to
Speaker 12: see it running on wall come, snapdrag and devices. Whether
Speaker 12: it's in your phone, in your car, in your PC,
Speaker 12: and into other machines. And I think, well, it's a
Speaker 12: great opportunity.
Speaker 2: For the future is to democracize access to artificial intelligence tools,
Speaker 2: generative AI tools, and cloudcom is going.
Speaker 11: To make that happen.
Speaker 2: Why are you not getting like Jensen one level love?
Speaker 11: Look, I think the I think what's happening right now.
Speaker 12: And by the way, it's great for the semiconductor industry.
Speaker 12: For anybody that has been on the forefront of computing.
Speaker 12: You know, Qualcom probably used to be well known as
Speaker 12: a communication company, but actually if you look at what
Speaker 12: we do right now, it's more of a connected processor
Speaker 12: company than communication.
Speaker 11: And as those models started.
Speaker 12: To become very popular, they're going to be running at
Speaker 12: the edge. And I expect that AI becomes an option
Speaker 12: on Qualcomm right now. Look, and I'll give you an example.
Speaker 12: It's it's I saw something they add them. I think
Speaker 12: in the prior conversation when he said something about in
Speaker 12: nineteen ninety seven, if you try to guess who are
Speaker 12: the winners and losers on the Internet, it will be
Speaker 12: probably a very wild guest. I think what we see
Speaker 12: today is this janitor of AI opportunity is huge. We
Speaker 12: don't know yet all of the different applications that are
Speaker 12: going to come up. We're seeing that just within the
Speaker 12: past six months is a revolution the number of companies
Speaker 12: come on with use cases and those use cases are
Speaker 12: going to happen on devices, and I think that's going
Speaker 12: to be a great opportunity for.
Speaker 3: Hold that thought. What we're going to do.
Speaker 2: Now, I'm going to show you something to the audience
Speaker 2: here and those with us virtually, but during that think
Speaker 2: about questions for Cristiano based on what you see. And
Speaker 2: so with that, let's bring up the video, and Christiano,
Speaker 2: when it comes up and plays, explain to us a
Speaker 2: little bit what it is that we're seeing, because here
Speaker 2: at the Bloomberg Technology Summit, we're going to nail the technology.
Speaker 2: Any second, just wait, the video is going to come
Speaker 2: and when it does, it will have been worth the way.
Speaker 11: Here we go.
Speaker 12: Yes, So what you basically see is a countro net demo.
Speaker 12: You have an input image on your phone. You tell
Speaker 12: in your input prompt what do you want the image
Speaker 12: to be. You wanted to make it a masterpiece, look
Speaker 12: like Venice Canals four K, and it just runs and
Speaker 12: give you this very unique image image to image that's
Speaker 12: never been created before, created to AI running on your phone.
Speaker 11: So it's a good I think.
Speaker 12: Time to talk a little bit about how we think
Speaker 12: about AI at the edge outside of the data center, because,
Speaker 12: like we have seen everywhere, there's going to be this
Speaker 12: huge opportunity for the cloud, but it's going to be
Speaker 12: this huge opportunity for devices because what you do own
Speaker 12: the device is very different. So there's a number of
Speaker 12: reasons why this is going to be very popular on
Speaker 12: the device. First, the device has contextual information about you
Speaker 12: and has real time information like a picture you just
Speaker 12: took and you want it right now at that moment,
Speaker 12: change that picture and share with somebody else with your
Speaker 12: messaging platform.
Speaker 2: For context that video. That device was run in aeroplane
Speaker 2: mode without any external connection, right, It ran them model
Speaker 2: locally on.
Speaker 12: Device absolutely, So that's one of the reasons you have
Speaker 12: real time context information.
Speaker 11: There's another reasons processing on.
Speaker 12: The phone is virtually free when you think about you're
Speaker 12: running those models in the cloud and think about a
Speaker 12: large language model for every token, like a word as
Speaker 12: the sentence. If you do that, if you have an
Speaker 12: experiment that you see the words coming.
Speaker 1: Up, the president and CEO of Qualcom, Christiana I'm on
Speaker 1: talking about our very own ed Ludlow, of course, discussing
Speaker 1: how Qualcom's going to be playing a role in the
Speaker 1: enormous scope of generative AI edge computing. Of course, the
Speaker 1: chips that are known to be in your iPhones and
Speaker 1: your phones and your automobiles. One, of course, Qualcom wants
Speaker 1: to ensure that you're accessing generative AI in local ways
Speaker 1: and means