Speaker 1: From Mahart where Innovation, money and power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3: I'm Caroline Heine Bluemug's World headquarters in New York, and
Speaker 3: I'm Ed Ludlow in San Francisco.
Speaker 2: This is Bloombay Technology.
Speaker 3: Coming up full earnings coverage ahead salesforce and jumps after
Speaker 3: forecasting profit the top estimates and showing signs of momentum
Speaker 3: in cost cutting.
Speaker 4: And Elon Musk says the advertiser boycotton X may kill
Speaker 4: the platform. Will break down his comments and look at
Speaker 4: the rollout of Tesla's cyber truck plus.
Speaker 3: Today marks one year since the public rollout of chat GPT,
Speaker 3: bringing AI into the spotlight and sparking a wave of
Speaker 3: investment and hiring. Will dig in to what that one
Speaker 3: year anniversary red means. But first that's checking on these
Speaker 3: markets because while we're coming to the end of the
Speaker 3: month here and what a month it has been, but
Speaker 3: in the short term we just perhaps give off some
Speaker 3: of those profits. We see off about nine ten percent
Speaker 3: on the Nasdaq. Look the PCE, the number, the inflationary
Speaker 3: indicator coming in basically where.
Speaker 5: The market had anticipated.
Speaker 3: So they're already priced in the good news and maybe
Speaker 3: we sell the fact we'll look at the ten yure
Speaker 3: YELD actually just bouncing up a little bit after what
Speaker 3: has been a roaring November for the bomb market as well.
Speaker 3: I mean, just phenomenal by everything rally for the November month,
Speaker 3: and we're seeing Crypto just giving off a little bit,
Speaker 3: but look hardly any movement there down a by a
Speaker 3: tenth of a percent, moving on, and I just want
Speaker 3: to give you the context of where we've been this
Speaker 3: month because an extraordinary move high that we have seen
Speaker 3: in the Nasdaq overall, and we've given well, well you
Speaker 3: see over the last actually there is Bitcoin over the
Speaker 3: last month that's up some nine percent, Nasdaq itself up
Speaker 3: well ten percent on the months, which has clearly been
Speaker 3: the best month for the Nasdaq since January, and Bitcoin
Speaker 3: as well, up more than nine percent. Really, it's been
Speaker 3: in everything rally, risk on and what about the individual movers.
Speaker 4: To It's been a really busy twenty four hours in
Speaker 4: the earnings context with Technology Snowflakes strong outlook boosting that
Speaker 4: stock up almost five percent. HPEU graded at Morgan Stanley
Speaker 4: which is adding to a two day rally. It posted
Speaker 4: results Wednesday night, you'll remember, but it is showing real strength.
Speaker 4: Then a thriller for you in the story's face, pure
Speaker 4: story is giving a weak sales outlook that really hammering
Speaker 4: the stock. And then elsewhere, big rival Newtoni's actually upgrading
Speaker 4: its billings forecast that's supporting that stock. The main earning
Speaker 4: story is Salesforce, and you're right, the story with Salesforce
Speaker 4: is that it's cost discipline, its cost cutting is showing
Speaker 4: a real path to boosting profitability. The stock up six
Speaker 4: and a half percent, putting it on track for its
Speaker 4: biggest jump since March.
Speaker 2: Is this the Mark Benioff effect?
Speaker 4: Is this him listening to the investors and acting while
Speaker 4: the stock seems to be reacting such that it is.
Speaker 3: Yeah, I mean, look at that up more than six percent.
Speaker 3: Let's get to it with our own Salesforce reporter bringing
Speaker 3: Brody Ford, and.
Speaker 5: It does seem to be this new era of cost
Speaker 5: discipline that really benefits Salesforce. Is there underlying revenue generation
Speaker 5: going on?
Speaker 2: Hit to you, that's everybody's fear, right.
Speaker 6: I mean, it was a year ago, about a year
Speaker 6: ago today that Salesforce said that their co CEO is
Speaker 6: stepping down. It kicked off as kind of unprecedented wave
Speaker 6: of chaos.
Speaker 5: Right over the period of a quarter or two.
Speaker 6: We saw executive resignations, activists, investors.
Speaker 7: Taylor is right, right, but yeah, and ultimately though they
Speaker 7: raised their profits incredibly, it made people very happy, but
Speaker 7: then it made them very scared because then revenue growth
Speaker 7: started slowing down.
Speaker 6: What we saw last night is that as long as
Speaker 6: revenue growth stays stable and profit keeps going up, well
Speaker 6: that's good enough for now.
Speaker 4: Hey Brady, how does AI play into that story? I
Speaker 4: know it's something that any off flights to talk about.
Speaker 2: Yep.
Speaker 6: Yeah, so they're really big hope here with AI is
Speaker 6: that it can help bring revenue growth back up. That's
Speaker 6: immaterial for the current year, but they're hoping that when
Speaker 6: it comes to next year, it'll help, you know, upsell
Speaker 6: people on most new so descriptions. Right, You got to
Speaker 6: pay a little extra to get the chat bar in
Speaker 6: your apps where you can use that to automate your processes,
Speaker 6: ask good questions, bring in your favorite large language models,
Speaker 6: and so there you have been pretty much putting AI
Speaker 6: into every single press release you can find and it.
Speaker 6: You know, the cat is out on whether it will
Speaker 6: truly boost revenue growth the way they hope.
Speaker 4: Doomber's brady for busy earning season. For you covering Snowflake
Speaker 4: as well, Thank you very much, all right. The other
Speaker 4: top story. Ever since Musk agreed with an anti semitic
Speaker 4: post on his social platform X earlier this month, that
Speaker 4: was November fifteenth, the billionaire has been under fire Caro
Speaker 4: from the White House, several test investors. But for the
Speaker 4: first time since that post prompted the global backlash, let's
Speaker 4: be honest, Musk has apologized to his choice of words,
Speaker 4: saying that the post was quote the worst and dumbest
Speaker 4: he's ever done. That was during the New York Times
Speaker 4: Deal Book conference in New York. He also said his
Speaker 4: trip to Israel was planned before the advertiser backlash and
Speaker 4: wasn't an apology tour. So, I mean, look, you and
Speaker 4: I were talking about this this morning at our desks.
Speaker 4: This is an apology first and foremost, and then an
Speaker 4: exploit expletive laid in message to the advertisers, which was basically,
Speaker 4: don't advertise.
Speaker 5: Yeah, he's not apologizing to them.
Speaker 3: He might be apologizing to the media, to the user base,
Speaker 3: to those that he feels have perhaps misunderstood his messaging
Speaker 3: along and certainly once again time and time again saying
Speaker 3: he's not antisemitic, but many will point to the way
Speaker 3: in which he interacts on his own social media platform
Speaker 3: as not being clear and consistent with that thought.
Speaker 5: But putting to that to one side, the fact that.
Speaker 3: He can basically bring Bob Iger's name into the conversation
Speaker 3: on stage explutive least as you say, and basically saying, look,
Speaker 3: you're the ones that are killing X. Meanwhile, I mean
Speaker 3: many would say is he the one killing X in
Speaker 3: the respect that it's his own actions that perhaps push
Speaker 3: away some of these advertisers, but also he's the guy
Speaker 3: who could perhaps sustain it.
Speaker 5: He's got the money.
Speaker 2: Yeah, I think you know.
Speaker 4: There are the debt equation of Twitter and X and
Speaker 4: how he bought it. There are the equity holders in X,
Speaker 4: the platform formerly known as Twitter. That basically what he said,
Speaker 4: and it's fair to point out. On November fifteenth, he
Speaker 4: regretted that post, but he said he immediately followed up
Speaker 4: with the clarification that the media ignored in his words,
Speaker 4: and as for Bob Byger, he basically said, hey, Bob,
Speaker 4: I'm sure you're in the audience. We think that's a
Speaker 4: reference to Disney CEO Bobbieger, though he wasn't explicit.
Speaker 3: Yeah, and probably they'd been together in the green room
Speaker 3: perhaps before of that, because Bobbigo had been speaking at
Speaker 3: the same conference as well.
Speaker 5: But all of this basically is noise around what.
Speaker 3: Is going to be a big main event for one
Speaker 3: of his key companies, Tesla. We just referenced how some
Speaker 3: investors have been concerned about the way he's been behaving
Speaker 3: on his social media platform, and we want to be
Speaker 3: bringing in Craig Trudell now on the fact that actually
Speaker 3: what he wants to dominate the headlines today is a
Speaker 3: cyber truck unveiling RNE.
Speaker 8: I don't think I'll have any trouble doing that. Of course,
Speaker 8: it's a pickup that made an awful lot of headlines
Speaker 8: going back four years now. Right, So, this was a
Speaker 8: truck that they showed very famously or infamously, I guess,
Speaker 8: depending on your view through the metal ball at the
Speaker 8: windows they cracked.
Speaker 9: You know.
Speaker 2: I think a lot of people.
Speaker 8: Who were in the room sort of gasp when this
Speaker 8: truck was first shown and you know, some weren't really
Speaker 8: sure how serious it was.
Speaker 2: It's dead serious.
Speaker 8: It's finally ready for deliveries a couple of years late.
Speaker 8: But it's no question that this one's sort of a
Speaker 8: head turner and you know, sort of as polemic a
Speaker 8: vehicle as they come, you.
Speaker 4: Know, Craig, the pickup category, be it electric, hall combustion engine,
Speaker 4: is just sacred in North America. And you know, donah
Speaker 4: Hole has written really smartly about how Musk has been
Speaker 4: signposting for like years that this is really ambitious, is
Speaker 4: not going to be easy to build.
Speaker 8: Yeah, and I think she did a great story this week,
Speaker 8: you know, really drawing parallels between you know, this is
Speaker 8: their first pick up. They had a first suv years ago,
Speaker 8: the Model X. That there's a lot of similarities in
Speaker 8: the way Musk has talked about these two, you know,
Speaker 8: with the Model X, you know, he talked about, you know,
Speaker 8: regretting the fact that they sort of overloaded it with technology,
Speaker 8: and then he's gone on to say that he's overloaded
Speaker 8: the cyber truck with an awful lot of technology. So
Speaker 8: there's a lot of ways that this, you know, manufacturing
Speaker 8: this pickup could go sideways. I think he's really sort
Speaker 8: of you know, gone out of his way to bring
Speaker 8: expectations down in terms of how quickly they'll be able
Speaker 8: to scale this up, when they'll be able to do
Speaker 8: so in a way that's not you know, burning through
Speaker 8: lots of cash, and so, you know, I think, you know,
Speaker 8: we may be surprised. There are some people who, you know,
Speaker 8: think that this thing is kind of hideous and and
Speaker 8: a bit of a monstrosity. There are some who think
Speaker 8: it's really really cool. I think, you know, there's probably
Speaker 8: going to be no trouble here with demand. For me,
Speaker 8: the question is how the heck are they going to
Speaker 8: scale this thing up and overcome the various manufacturing challenges
Speaker 8: that he's flagged going into this.
Speaker 5: Craig, we thank you. Bliombo's craigtured all On.
Speaker 4: Sam Altman is officially reinstated as CEO of open Ai,
Speaker 4: and it has a new initial board of directors, with
Speaker 4: Microsoft now joining as a non voting observer. All of
Speaker 4: this happening one year to the day after chat GPT
Speaker 4: was released and made it accessible to the public. Let's
Speaker 4: bring in Bloombo's Rachel Metz. Lots of news out overnight,
Speaker 4: and you had an interview with Sam Altman.
Speaker 10: He did, Yeah, there's a lot going on at OPENINGI
Speaker 10: A lot of it is rubber stamping in a sense
Speaker 10: of things that we had already learned that Sam Altman
Speaker 10: is now officially back at the company as a CEO,
Speaker 10: and and Greg Brackman, who had been president, is also
Speaker 10: back at the company. Miramrati, who was very very briefly
Speaker 10: interim CEO, is now back as a chief Technology officer,
Speaker 10: and a bunch of other things that you just recount.
Speaker 5: I'm a whole bunch of other things.
Speaker 3: I mean, notably, Microsoft comes on as a non voting observer.
Speaker 3: Still a lack of diversity at the interim board level
Speaker 3: as we can currently see, but I'm interested that they
Speaker 3: are saying is certainly Brett Taylor was writing alongside some
Speaker 3: Mountman in a post that look, prepare yourself. We are
Speaker 3: going to be diverse, and we're also going to look
Speaker 3: into why any of this upheaval happen to begin with.
Speaker 10: Yes, absolutely so on the first point, diversity and just
Speaker 10: enlarging the board. When I spoke to Sam yesterday, and
Speaker 10: also I got to speak briefly to Larry Summers, who's
Speaker 10: one of the new board members. They both said that
Speaker 10: they're planning to enlarge the board significantly. Wouldn't give a
Speaker 10: number on how many people will be in it eventually,
Speaker 10: but they're definitely planning to add people. Or as to
Speaker 10: the other point that you were making, now I'm blinking
Speaker 10: on what that was.
Speaker 5: Go back now.
Speaker 3: I mean, it's so what you have covered and the
Speaker 3: amount that you have covered over the last few days,
Speaker 3: no wonder you're going to be blanking. But really, Larry
Speaker 3: Summer's coming on board, many feeling is sort of like
Speaker 3: the experienced board director and himself thinking about the way
Speaker 3: in which this board can be expanded and thought upon.
Speaker 3: And he says, like, give us a minute. We've only
Speaker 3: been in the board of interim board for about half
Speaker 3: an hour. I think, what's the coak that he gave you.
Speaker 3: Rachel Metz, we thank you so much for your time
Speaker 3: and of course continued conversation that she manages to have
Speaker 3: with these key executives. Let's get another key angle from Sarahkrat's,
Speaker 3: Professor of Government and director of Tech Policy Institute over
Speaker 3: at Cornell University. And Sarah, you yourself were you were
Speaker 3: back in the day before open AI became a for
Speaker 3: profit business. You were helping alongside early open ai employees
Speaker 3: co author research documents, thinking about ultimately how generative AI
Speaker 3: can work in hand and be good for humanity. How
Speaker 3: has the era of chatchpt fast forward in what you
Speaker 3: thought was achievable in artificial intelligence?
Speaker 11: Right? No, So, I started working with OpenAI back in
Speaker 11: twenty eighteen when it was still the nonprofit, and then
Speaker 11: in twenty nineteen it became the for profit. I've but
Speaker 11: I think as the company it's really almost only a
Speaker 11: year old because it was so formative in that time.
Speaker 11: Between twenty fifteen and twenty twenty two, most people hadn't
Speaker 11: heard of it. We were writing and researching, and then
Speaker 11: in twenty twenty two, chat gpt became this consumer facing
Speaker 11: platform that was so easy to use, so user friendly,
Speaker 11: and it just took off the fast setting records for
Speaker 11: its uptake one hundred million users within the first two
Speaker 11: months and now one hundred million users per week, which
Speaker 11: is really astonishing.
Speaker 4: It's incredible to track how far we've come in the
Speaker 4: space of the year. But much of the last two
Speaker 4: events put the spotlight on what's to come next, the
Speaker 4: next generation of large language model on the board issue
Speaker 4: this is what Brett Taylor, whose interim chair of Open
Speaker 4: Aiyes Board, said, we will build a qualified, diverse board
Speaker 4: of exceptional individuals reflecting open ais message from technology to policy.
Speaker 4: That last bit, technology to policy. Why is the makeup
Speaker 4: of Open Aiyes Board important to their success in developing
Speaker 4: the technology?
Speaker 11: Yeah. I think what we saw in those two weeks,
Speaker 11: in these last two weeks was just that kind of
Speaker 11: tug of war on was between the two visions of
Speaker 11: what AI should look like. And there have been a
Speaker 11: lot of discussions about how much of that was just
Speaker 11: kind of a myth and outsiders reading things that weren't there.
Speaker 11: But it does seem like there are these two real
Speaker 11: philosophies about how quickly to move, and that the philosophy
Speaker 11: about moving quickly seems to have one out. And I
Speaker 11: think what the board should do, or its intended role,
Speaker 11: is to be kind of a rudder in shoppy water
Speaker 11: or what could be choppy waters. But I think where
Speaker 11: the nonprofit board, the former board got in the way
Speaker 11: was that its vision was so at odds or seemed
Speaker 11: to be at odds with not just the direction Open
Speaker 11: AI is going, but AI in general. And so I
Speaker 11: think right now We're in a real arms race, and
Speaker 11: the I think legitimate perspective of the Open AI people
Speaker 11: who have stayed is that this technology is developing quickly,
Speaker 11: whether we're on board or not, and so we might
Speaker 11: as well be. We Open AI be leading and trying
Speaker 11: to do it responsibly. So you know, the nonprofit or
Speaker 11: what was the not what is the nonprofit board, but
Speaker 11: the former board I think it wasn't that they didn't
Speaker 11: want to develop AI, but I think they just had
Speaker 11: different ways of doing it. So the new board will
Speaker 11: come in and try to i think, be more compatively
Speaker 11: aligned with that, with the direction that the company and
Speaker 11: with the direction the AI is going.
Speaker 3: And of course much of the hand wringing around AI
Speaker 3: and safety has been a worry about bias. That is
Speaker 3: why many people are saying, you need to have minor
Speaker 3: at the table. You need to ensure that all voices
Speaker 3: are heard. Here we re established at the interim board
Speaker 3: as it stands, looks pretty undiverse, one of them being
Speaker 3: Larry Summers the course, a paid contributor of Bloomberg. I'm
Speaker 3: interested as to what you think, Sarah will be the
Speaker 3: next situation. Will open AI be able to be as
Speaker 3: agile going forward. Do you think after this, No, I
Speaker 3: think there.
Speaker 11: Has to be a real goal and I think for
Speaker 11: them and in general, the diversity is not an end
Speaker 11: in itself, but it does give you different perspectives. Some
Speaker 11: of the early versions of AI really did, I think,
Speaker 11: warrant some criticism about bias and discrimination. So I think
Speaker 11: there is a lot of attentiveness to that. So it's
Speaker 11: important for that board to be able to read team
Speaker 11: different ideas and present different perspectives without being misaligned. I
Speaker 11: know alignment is a big term in the AI world,
Speaker 11: but just kind of contributing to a different set of
Speaker 11: perspectives that can kind of be a force for good
Speaker 11: while not holding back the technology.
Speaker 4: Sarah As, Professor of Government and Director of the Technolicy
Speaker 4: Institute at Cornell University.
Speaker 2: Thank you so much.
Speaker 4: This is Bloomberg Technology.
Speaker 3: It's time to turn to the intersection of artificial intelligence
Speaker 3: and healthcare. Phillips is exploring the technologies potential in when
Speaker 3: of course, when it comes to wearables, imaging, hospital task automation.
Speaker 5: We're pleased to welcome to the show.
Speaker 3: Roy Yakovs is Phillips CEO, marking one year at the
Speaker 3: helm of the company, a company that is now fully
Speaker 3: focused on the medical use and healthcare applications, and AI
Speaker 3: is a key driver in that. Just tell us how
Speaker 3: already you're working with well the departments in some ways
Speaker 3: of those that are looking at tracking using an or
Speaker 3: ring or whether it be a garment watch, how are
Speaker 3: you already working with governments and indeed consumers.
Speaker 2: So we are in un monitoring business.
Speaker 9: We have a wrong collaboration where we can actually include
Speaker 9: all the data from any Apple devices or rings devices
Speaker 9: that you're using in the house or in the home
Speaker 9: to insert that into a patient context to understand how
Speaker 9: that actually makes a better diagnosis or full patient picture.
Speaker 9: Were also remotely monitoring in the home, for example, for
Speaker 9: cardiac rhythm problems to early pick up signals that can
Speaker 9: actually then prevent deterioration later. So bringing here to the
Speaker 9: home is a big part of what we're doing, making
Speaker 9: sure that actually we start the journey as early as
Speaker 9: possible so that actually you can prevent deerioration. But then
Speaker 9: also in the hospital we see that actually AI is
Speaker 9: picking up very quickly. Just coming out of Chicago where
Speaker 9: we had a very big show around how we can
Speaker 9: improve imaging because there's a huge demand for more images.
Speaker 9: But actually the hospital sector is really challenged to have
Speaker 9: enough radiologist or technicians to do all the cats.
Speaker 2: So that's where AI can come.
Speaker 9: To the rescue to really make a productivity difference.
Speaker 3: I think of how I use my connected wearables, and
Speaker 3: some of that's to track my sleep. Now I want
Speaker 3: to shift gears a little bit because there has been
Speaker 3: a safety issue involving your dream Station two. This is
Speaker 3: about sleep apnea and the machine there. The FDA having
Speaker 3: a certain reports of overheating, worrying about fire smoke burns.
Speaker 3: There's also been other concerns around just sleep at near products.
Speaker 3: How are you tackling that as the CEO right now?
Speaker 9: Yeah, when I came into the office, I said, first
Speaker 9: priority is patient safety quality, so I put a world
Speaker 9: class team on it to work through the challenges. We
Speaker 9: also said we need to get very proactive and identifying
Speaker 9: what is out here so that actually we can.
Speaker 2: Address it and put the quality on up.
Speaker 9: So it's about how we identify and then make sure
Speaker 9: that we across the company provide the best quality care
Speaker 9: and make sure that in the daily practices when we
Speaker 9: work with customers and in the context that they have,
Speaker 9: we can make sure that actually they can rely on
Speaker 9: our products, so that's something we have doing in our strategy.
Speaker 9: You also have seen that from the recent quarters we
Speaker 9: have been seeing quite an uptake in the performance of
Speaker 9: the company because we have.
Speaker 2: Been able to start growing again. Now we have four
Speaker 2: quarters of growth. We have up the guidance twice.
Speaker 9: But also that what's under the premise that basic safety
Speaker 9: and quality, supply chain improvements and simplification of the organization
Speaker 9: are really important to drive better impact for care.
Speaker 4: Mister Jacob's good morning from San Francisco. That issue, the
Speaker 4: most recent was on the thermal issue of your current generation,
Speaker 4: but it's kind of brought back the discussion about the
Speaker 4: recall of two years ago over the polyphone deterioration.
Speaker 2: There's a large body.
Speaker 4: Of academic work that shows a latency in the cancers
Speaker 4: that arise from exposure to deteriorating polyphone periods of twenty
Speaker 4: to forty years down the road. Is Phillip's conscious of
Speaker 4: that latency.
Speaker 9: So we have done extensive testing towards the health risk
Speaker 9: of degradation of the p perform. We've also come forward
Speaker 9: with our testing which actually shown that there's no peaceable
Speaker 9: harm from the usage of our devices. So that's something
Speaker 9: that we have done over three period with very strong
Speaker 9: evidence created together with the best scientific bodies, external bodies
Speaker 9: and toxicologists to make sure that actually we have no
Speaker 9: patients patient safety home for our users. Also from there,
Speaker 9: we have been working with the whole group of healthcare
Speaker 9: providers that we currently are addressing to make sure that
Speaker 9: patient safety and quality is the first priority. That actually
Speaker 9: also transmits into how you can use AI to improve
Speaker 9: the daily practice of AI, because if you look at
Speaker 9: what AI can do, actually can help you read and
Speaker 9: interpret images in a more accurate fashion. Can also make
Speaker 9: sure that the radiologists that are reading from home nowadays
Speaker 9: seventy percent is reading from home, can get access to
Speaker 9: the images and then make sure that they have the
Speaker 9: propriate interpretation support with AI before and after their week miss.
Speaker 4: The actives set aside one point one billion for remediation
Speaker 4: and half a billion for law suits. Is that sufficient
Speaker 4: or we have to add to that.
Speaker 9: So we have been dealing with it. We call we
Speaker 9: made great progress. We actually have now we mediated the
Speaker 9: sleep patients and actually we are getting back into providing
Speaker 9: sleep products outside of the US to our patients. So
Speaker 9: we have provided for that that actually is also been
Speaker 9: sufficient to date. We took economic loss provision early this
Speaker 9: year that actually also will be evactuated next year. And
Speaker 9: then if you look to how we are getting the
Speaker 9: rest of Phillips to where it needs to be. We
Speaker 9: have been making significant progress with the profitability that went up.
Speaker 9: We have guided or increased our guidance now twice for
Speaker 9: this year. We're heading towards six or seven percent growth
Speaker 9: rate this year, both from health as well as from
Speaker 9: the consumer health side. So we actually getting the company
Speaker 9: back in to a growth and contributing level. And we
Speaker 9: do that on the back of our innovations that have
Speaker 9: real meaningful impact in the healthcare challenges of today where
Speaker 9: they have a massive productivity gap that they need to address,
Speaker 9: where our technology ANAI comes to the rescue.
Speaker 3: Roy Jakobs, Solips CEO. Should we have more time? This
Speaker 3: is Bloomberg Technology.
Speaker 4: Welcome back to Bloomberg Technology. Ed Ludlow here in San Francisco,
Speaker 4: cal and hired in New York.
Speaker 3: Let's get a check on these markets, because halfway through
Speaker 3: this training day, look.
Speaker 5: A little bit of profit taking.
Speaker 3: Maybe after we come off a stellar month and as
Speaker 3: back had its best month since January, we're up about
Speaker 3: ten percent. We pull back a little bit, but not
Speaker 3: quite a percentage point, and then as that one hundred
Speaker 3: off by nine ten seven percent, we're seeing the bond
Speaker 3: market seeing significant action on the day at seven basis points.
Speaker 5: But remember how far how fast.
Speaker 3: We've come, basically the best month for the bond market
Speaker 3: since the nineteen eighties. And therefore you're seeing this sort
Speaker 3: of everything rally, risk assets pushing higher as everyone anticipates
Speaker 3: a federal's that just cools down on its rate hiking path,
Speaker 3: indeed starts cutting as soon as May. We're looking at
Speaker 3: what's happening in the risk asset of choice in the
Speaker 3: technology market, which is bitcoin. It's currently off by just
Speaker 3: about a tenth of a percent as the dollar just
Speaker 3: kicks up a little bit. Remember it's been a story
Speaker 3: of dollar weakness on the month of November two. Move on,
Speaker 3: look at some of the individual names that we're looking
Speaker 3: at on the day, and look at shine a light
Speaker 3: on some of the key movers like PDD what now
Speaker 3: eight year old startup from China now worth more from
Speaker 3: a market cap position versus Ali Baba more than one
Speaker 3: hundred and eighty eight billion dollars. IT eclipses IT were
Speaker 3: up three percent on the trading day. I'm looking at
Speaker 3: what's happening also in terms of some numbers. Synopsis have
Speaker 3: actually been doing well before the market opened. They then
Speaker 3: pull back, even though they're managing to postgit gains. Remember,
Speaker 3: this is all about electronic automatic this is about design, automation, design,
Speaker 3: and particularly around the world of chips, they might be
Speaker 3: selling off some parts of the business. So we're looking
Speaker 3: at a currently a pullback of about three percent for
Speaker 3: that particular business. And lastly, I'm looking what's happening with
Speaker 3: in video, because we're all thinking about artificial intelligence and
Speaker 3: chips and more generally, and it seems as though actually
Speaker 3: a lot of these chip related names in the world
Speaker 3: of artificial intelligence said I'm just offer a little bit
Speaker 3: in video pulling back by some three percent as well.
Speaker 4: Over g those are the public market moves. There are
Speaker 4: big moves in private markets. Big Series A together AI
Speaker 4: research driven AI company working for more open source models
Speaker 4: and data sets, just raised one hundred and two point
Speaker 4: five million dollars in a Series A round led by
Speaker 4: Klina Perkins. Other investors who've participated in the round, including Nvidia,
Speaker 4: Luxe Capital, Greycroft, and a few others you can see
Speaker 4: there on your screen. Clina Perkins partner Bucky Moore and
Speaker 4: Vple Bedpra Cash, CEO and co founder together Ai, both
Speaker 4: here with us in San Francisco. You want to offer
Speaker 4: a place where you can take a custom model, an
Speaker 4: open source model and build it affordably. I think Bedrock
Speaker 4: aws because of this week and what's been in the newsflow.
Speaker 2: What are you trying to build?
Speaker 1: First? Thank you so much for having us here together.
Speaker 1: We believe open source is a big part of the
Speaker 1: ICs future. So what we've built is a very optimized
Speaker 1: out platform for buildings some data AI applications on open
Speaker 1: and custom models. You know, we provide APIs where if
Speaker 1: we have hundreds of models to feed packaged the user's
Speaker 1: going to use, and we provide for best in class
Speaker 1: tools to allow companies to build their models from scratch
Speaker 1: or take an open model and bap them with find
Speaker 1: doing for their purposes.
Speaker 4: Bucky, it's a big check, a few checks for a
Speaker 4: series A. You know this space better than many you're
Speaker 4: taking on the hyper scalas and you're trying to offer
Speaker 4: something at a better price than they are. But you're
Speaker 4: confident that this gather AI can do that.
Speaker 12: So you've been covering this space for a reason. This
Speaker 12: is a fundamentally new form of computing that is going
Speaker 12: to be as disruptive as internet and mobile and with
Speaker 12: respect it together like an OS basically absolutely and with
Speaker 12: respect it together. What we're seeing as enterprises are now
Speaker 12: leaning in and wanting to build on these open source
Speaker 12: and custom models, and to do that, they're going to
Speaker 12: need a platform upon which these models can run, and
Speaker 12: we think Together's that platform.
Speaker 3: I'm interested from your perspective, what we like to categorize
Speaker 3: perhaps in the media is this tension between open source
Speaker 3: and closed models. And I mean, the open source movement
Speaker 3: is as old as software itself Forbell, but I am
Speaker 3: interested in the perhaps car crash of a story that
Speaker 3: we had a couple of weeks ago around open AI.
Speaker 3: Suddenly corporates are thinking about business continuity, about ensuring that
Speaker 3: perhaps they're not dependent on one particular LL and provider.
Speaker 3: Has that changed in the conversations you're having.
Speaker 1: With corporates, I would say it certainly illustrates the need
Speaker 1: for a choice. You know, companies that are building the
Speaker 1: strategies around and radio AI want control of their models.
Speaker 1: They want to own the output of their efforts, and
Speaker 1: open source is.
Speaker 2: It's a great way of doing that.
Speaker 3: Okay, from your perspective, can be more resource intentive though,
Speaker 3: to sort of manage your open source code in some way.
Speaker 3: And I'm interested in how companies are really going to
Speaker 3: end up aligning when it comes to their own proprietary
Speaker 3: data and building on these open source models.
Speaker 12: So, first of all, open source AI is really history
Speaker 12: repeating itself. Business has been leveraging open source in the
Speaker 12: form of databases and other core underpaintings of how they
Speaker 12: develop their software for decades. So again, this is history
Speaker 12: repeating itself. And in that sense, yes, there is some
Speaker 12: operational burden that a company has to take on to
Speaker 12: leverage open source relative to a managed service, but this
Speaker 12: is precisely where Together's technology comes in. They want to
Speaker 12: make that piece easy and take it off the hands
Speaker 12: of enterprises so they can realize all those benefits without
Speaker 12: the operational burden.
Speaker 4: Vivo, You've got Nvideo as an investor, fantastic, but have
Speaker 4: you got them as a technology partners? You have a
Speaker 4: big old bag of h one hundreds that you can
Speaker 4: sling over the shoulder.
Speaker 2: And call it a day.
Speaker 1: Everyone wants that, right, you know, the other technology partner
Speaker 1: and Ridia is really a leading company the space. I
Speaker 1: would say they have the platform today for AI everywhere.
Speaker 2: Well, what are there er options to you?
Speaker 4: I mean, I guess considering what you're trying to build
Speaker 4: right the whole business offering from you, were there any
Speaker 4: alternatives other than Nvidia to get the compute needed to
Speaker 4: build a platform like that?
Speaker 2: To day?
Speaker 1: We get a lot about price performance. So the services
Speaker 1: we provide for our infant service are six times cheaper
Speaker 1: than Opening Eyes, our training services are four times cheaper
Speaker 1: than AWS, and we're able to do.
Speaker 4: More times cheaper than AWS. Can you absolutely guarantee.
Speaker 1: That, absolutely guarantee that yes. And this is both a
Speaker 1: combination of our hardware stack as well as the software
Speaker 1: that we have both on it make training and infence more.
Speaker 5: Efficient, Buckie.
Speaker 3: There has been much said about the hype dare we
Speaker 3: call it?
Speaker 5: Around artificial intelligence? What draws you to a team like People's.
Speaker 5: Is it talent?
Speaker 3: Is it what they've already been putting out there in
Speaker 3: terms of innovation? Isn't how they look there to be
Speaker 3: using a very large check that you've all managed to
Speaker 3: put together.
Speaker 12: So Caroline, when we've thought through what it takes to
Speaker 12: emerge as the leading provider of platform infrastructure for all
Speaker 12: of these businesses who we believe will be leaning in
Speaker 12: on open source and custom models, we really think it
Speaker 12: requires this unique combination of systems engineering and research talent,
Speaker 12: and both of those have to come together in a
Speaker 12: world class way to really build that market leading product.
Speaker 12: And together is the first company we've seen that really
Speaker 12: brings that to the marketplace in that manner, and that's
Speaker 12: why we're so proud to be their partner.
Speaker 3: Fiple the money, what will be allocated towards talent? How
Speaker 3: expensive is talent at the moment and is it all
Speaker 3: being brought together to bear where you sit now over
Speaker 3: on the West coast or are you're looking more geographically?
Speaker 11: You know?
Speaker 1: The capital one we are going to do deep investments
Speaker 1: and product.
Speaker 2: You know what as.
Speaker 1: Keeper is saying, we have a very deep research effort.
Speaker 1: We have a research company. We invest a lot, you know,
Speaker 1: corea research to build better models, build better model architectures,
Speaker 1: build better data sets, and a little better platform. So
Speaker 1: that will be a known investment. And yes, I think
Speaker 1: the talent.
Speaker 2: Market is you know, very tight today. But we have
Speaker 2: some of.
Speaker 1: The sort of leading researchers in the space are our
Speaker 1: co founders and part of the company and that really
Speaker 1: helps bring together the research community and have them attached
Speaker 1: to the company.
Speaker 4: But you always find interesting is the rationale of making
Speaker 4: investment based on what's put in front of you right
Speaker 4: with the greatest respects together. AI is not a massive company.
Speaker 4: How much weight do you put on the individuals they have?
Speaker 4: From a talent perspective, everyone's got GPUs. There are very
Speaker 4: few data scientists or engineers that can actually make them
Speaker 4: work from what I understand.
Speaker 12: So look at this stage, startups are all about the
Speaker 12: people behind them, and this is a world class team.
Speaker 12: As I said, that brings together this unique combination of
Speaker 12: systems engineering and research talent that we think is the
Speaker 12: most potent combination to go and build a market leading
Speaker 12: company in this space. And that's what we're excited about here.
Speaker 2: I just asked you both very quickly.
Speaker 4: It is one year to the date day since chatjept
Speaker 4: was released. For Paul, how has the last twelve months
Speaker 4: changed or accelerated what you've tried to do in AI?
Speaker 1: I think it has act beautiful a moment that made
Speaker 1: it very clear with a power of foundation models and
Speaker 1: their applicability, and that's really sort of you know, created
Speaker 1: a huge market around and interest in large and rated models.
Speaker 5: Fascinating from both of you.
Speaker 3: Always bucking more with your seeing around corners when it
Speaker 3: comes to infrastructure in the future thereof particularly when it
Speaker 3: comes to the world of AI. We thank you Kleine
Speaker 3: Perkins partner there and vivill Read Pracash of course CEO
Speaker 3: and co found together AI with that one hundred point
Speaker 3: to five million Series A. Meanwhile, coming up, let's talk
Speaker 3: about the social media and well got to think about
Speaker 3: how it implicates child safety online. We're going to be
Speaker 3: talking about how tech CEOs have been called to Capitol
Speaker 3: Hill to testify on exploitation.
Speaker 4: At I'm taking a quick check on shares of Meta
Speaker 4: down more than two percent. The whole market kind of
Speaker 4: took a weird turn at some point in the session.
Speaker 4: But the company plans to appeal a district court decision
Speaker 4: rejecting its attempt to block the FTC from modifying a
Speaker 4: twenty twenty settlement with the agency that required the company
Speaker 4: to update its privacy practices. Something that's playing out in
Speaker 4: court and drawing no cause or link, but it is
Speaker 4: interesting to see meta under pressure. This has been Bow Technology.
Speaker 2: All right.
Speaker 4: Time for talking at tech. First up, move over Ali Barber.
Speaker 4: It's lost its spot as China's most valuable e commerce
Speaker 4: company to Pinned wod Woe, best known for its opping
Speaker 4: apps Timu and pinned Woad wide. The eight year old
Speaker 4: PDD has gained more traction with investors, while growth for
Speaker 4: Jack Mars Ali Baba has softened. A big story of
Speaker 4: the week and if you're a fan of NASCAR, you'll
Speaker 4: now be able to stream the racing sport online. NASCAR
Speaker 4: sign deals with Amazon and Warner Brothers Discovery to show
Speaker 4: its races on their respective Prime Video and Max streaming platforms.
Speaker 4: The deal reportedly valued at seven point eight billion dollars plus.
Speaker 4: Morgan Stanley CEO James Gorman will now have a seat
Speaker 4: on Walt Disney's board of directors. Gorman's appointment will take
Speaker 4: effect on February fifth, twenty twenty four. The move comes
Speaker 4: ahead of an expected proxy fight and amid reports of
Speaker 4: interests in a board seat from billionaire Nelson Pelts. Veteran
Speaker 4: media executive Jeremy Dearrek will also be appointed to Disney's
Speaker 4: board effective January nine.
Speaker 2: A former Sky CEO, carro.
Speaker 3: Let's take a turn and talk about some of the
Speaker 3: other executives across the technology at large right now, but
Speaker 3: in particularly the CEO is a matter of ex a TikTok,
Speaker 3: a snap of disc They've all just been summoned dead
Speaker 3: by the Senate Judiciary Committee to testify at a hearing
Speaker 3: on child sexual exploitation that's now been given the date
Speaker 3: of January. This comes just a few weeks after Meta,
Speaker 3: of course, was sued by California group of more than
Speaker 3: thirty states have a claims that its social media platforms
Speaker 3: exploit youths for profit and feed them harmful content. It's
Speaker 3: a sensitive discussion and we're going to have it with
Speaker 3: Camille Carton, Center of Humane Technology Senior policy manager, And
Speaker 3: all of this comes at a time no matter where
Speaker 3: you're seeing the lawsuits coming from, whether they're families, whether
Speaker 3: they're coming from of course ultimately ages, whether they're coming
Speaker 3: from a federal level, all of them are they likely
Speaker 3: to disrupt the business models of these companies enough that
Speaker 3: we do see greater protection in whatever guys you might
Speaker 3: want to see it happen whether it's internally if you're
Speaker 3: working at the company, or externally using their products.
Speaker 13: I think what we're seeing right now is that we
Speaker 13: are absolutely at an inflection point, which is what you
Speaker 13: just described. Whether it's research that has been done by whistleblowers,
Speaker 13: researchers themselves, whether it's the lawsuits from ags, from parents,
Speaker 13: school districts, we are just seeing overwhelming kind of support
Speaker 13: for these platforms to take on much more responsibility, for
Speaker 13: them to be accountable to their actions, and for them
Speaker 13: to change the way that they design their products. Right now,
Speaker 13: these products are designed to capitalize on children's vulnerabilities, the
Speaker 13: things that make their development different than older users, and
Speaker 13: we know this from these disclosures, and so that's exactly
Speaker 13: what people are looking for when they're going through with
Speaker 13: these lawsuits and with these testimonies.
Speaker 3: When we think of the testimonies, we think, if Judge
Speaker 3: von Rogers has allowed them to proceed in some way,
Speaker 3: many would say, actually, the decisions that they've made means that.
Speaker 5: Much business model disruption won't happen.
Speaker 3: The fact that the endless scrolling isn't going to be
Speaker 3: something that's focused on but it will be more about
Speaker 3: protection and ultimately oversight from parents.
Speaker 5: Is that going to be enough? And how do you
Speaker 5: think if you think about.
Speaker 3: The other side, what Meta and other companies would say
Speaker 3: is what we're building isn't wrong.
Speaker 5: It's the way in which you mounted to use is
Speaker 5: it that is wrong?
Speaker 3: How can we get a better balance between the two.
Speaker 13: So I think the most important thing is to look
Speaker 13: at the incentives. Right These companies right now are incentivized
Speaker 13: to design their products with profits first. But we have
Speaker 13: tons of legislative solutions out there. We have COSA at
Speaker 13: the federal level that has over fifty bipartisan co sponsors.
Speaker 13: We have the Age Appropriate Design Code that's been in
Speaker 13: place in the UK was introducing California you mentioned Judge
Speaker 13: von Rogers. These solutions look at actually changing the way
Speaker 13: these platforms are designed. They look at how can we
Speaker 13: change these platforms so that kids' best interests are put
Speaker 13: forth first. They focus on privacy, they focus on changing
Speaker 13: features that are addictive, and they also provide a duty
Speaker 13: of care, basically requiring platforms to prioritize the best interests
Speaker 13: of kids over profits. And I think that's the best
Speaker 13: way forward here.
Speaker 2: Camille.
Speaker 4: Your position, and it's shared by others, is that social
Speaker 4: media platforms are deliberately designed as pieces of technology to
Speaker 4: be addictive to children and teenagers.
Speaker 2: Have I got that right?
Speaker 5: Yes.
Speaker 4: TikTok is an example, set out a policy in March.
Speaker 4: That policy was that you have to be age thirteen
Speaker 4: or a different age at least depending on local law
Speaker 4: restrictions to use the platform. Aside from legislation and the
Speaker 4: policies of companies like TikTok, what fixes would you recommend
Speaker 4: to safeguard teens and children? What technological solutions are there?
Speaker 13: Yeah, this is a great question, and TikTok has this
Speaker 13: policy as well as Facebook and many other platforms. But
Speaker 13: what we're learning from many of these disclosures related to
Speaker 13: the Attorney's general investigation is, for instance, Meta actually knows
Speaker 13: that they have millions of underage users. They have millions
Speaker 13: of users under the age of thirteen, which is in
Speaker 13: violation of that are a law that they are collecting
Speaker 13: data on. Not only do they know this, they are
Speaker 13: taking great lengths to make sure that the public doesn't
Speaker 13: know that they know this, and they're studying these users,
Speaker 13: they're capitalizing on these users. So these platforms already have
Speaker 13: a way of knowing who is and isn't on their platform,
Speaker 13: but they're choosing not to do anything about it, and
Speaker 13: they're choosing not to make sure that underage users are
Speaker 13: not accessing products that are not built for them.
Speaker 2: In January, on January.
Speaker 4: The thirty first, I believe a number of CEOs will
Speaker 4: go to Capitol Hill for a Senate hearing. When executives
Speaker 4: go before lawmakers. What is it that you hope comes
Speaker 4: out of public hearings like that? How does it move
Speaker 4: the agenda forward?
Speaker 13: I think that this is a really big opportunity for
Speaker 13: policymakers to push these executives on the fact that they
Speaker 13: know they have users that are on their platform that
Speaker 13: are not supposed to be the fact that we now
Speaker 13: have evidence that they are intentionally designing products in ways
Speaker 13: that are harmful to users. For instance, Artur Bihar, who
Speaker 13: was the most recent metawhistleblower, shared that one in eight
Speaker 13: young users under the age of sixteen experienced unwanted sexual advances,
Speaker 13: and despite Meta knowing this, instead of designing a reporting
Speaker 13: mechanism for users to be able to report this to Facebook,
Speaker 13: sorry to Instagram, for Instagram to be able to fix
Speaker 13: what was going on, they intentionally designed a reporting flow
Speaker 13: that was really hard for users. It took a lot
Speaker 13: of effort, it was really long, and they took out
Speaker 13: all human oversight. So young users are essentially not incentivized
Speaker 13: to report this anymore because the company doesn't do anything
Speaker 13: and the company is no longer being flagged about these
Speaker 13: issues that are happening. So I hope that these sessions
Speaker 13: we can actually get to the bottom of the fact
Speaker 13: that these companies know that some of the product designs
Speaker 13: are harmful and that we need to end this practice.
Speaker 3: Camilla, I'm sure we will go forth to these companies'
Speaker 3: leadership and say as to how they have been responding,
Speaker 3: because I'm sure they'd like to say a response to
Speaker 3: us to all whether or not indeed they have been
Speaker 3: trying to make it more or less difficult for these
Speaker 3: sorts of things to be reported. But Camille Carston, we
Speaker 3: thank you so much for your insights the Center of
Speaker 3: Humane Technology, of course, and we'd.
Speaker 5: Potentially like to be getting back ahead of that. January
Speaker 5: the thirty first up on Capitol.
Speaker 4: Hill, Robin Hood's making its international debut, launching commission free
Speaker 4: stock trading in the UK. The firm has started rolling
Speaker 4: out trading of more than six thousand US listed stocks
Speaker 4: and other securities to British retail investors. CEO of vlad
Speaker 4: Tenev spoke to Bloomberg's Tom McKenzie.
Speaker 14: So we have products for customers that who have low
Speaker 14: risk appetite for financial risk as well, and I think
Speaker 14: we can serve their needs. But I think there's two
Speaker 14: things we do exceptionally well in the US that carry
Speaker 14: over in the UK despite any cultural differences. People in
Speaker 14: the UK love easy to use, compelling mobile interfaces and
Speaker 14: they love getting the best possible economics on investing in
Speaker 14: other financial services. And I think these two things have
Speaker 14: been the cornerstones of Robinhood product design and development. We
Speaker 14: have really a beautiful our customers love the beautiful, almost
Speaker 14: magical quality of the Robinhood experience, and they appreciate the
Speaker 14: fact that they're getting industry leading economics. And when we
Speaker 14: talk to customers in the UK, there's a lot of
Speaker 14: enthusiasm over bringing these things to this market.
Speaker 15: As crypto bottom do you think and is it what's
Speaker 15: still being in the crypto space given what's happened with
Speaker 15: the likes of Finance and an FTX, or is that
Speaker 15: an opportunity for robin Hood to take market share.
Speaker 14: I think in the long run, it's certainly an opportunity
Speaker 14: and it's good for the industry to have unscrupulous actors
Speaker 14: weeded out and kind of falling off, because I think
Speaker 14: in order for the industry and the technology to become
Speaker 14: truly globally accepted, there has to be a foundation of
Speaker 14: regulatory compliance and it has to be integrated more and
Speaker 14: more into the traditional financial system and help solve real
Speaker 14: problems for people. So Robinhood continues to build crypto technology
Speaker 14: and be a leader there. We've been pleased with the
Speaker 14: growing market share we've been seeing in the US even
Speaker 14: through the winter, and as you probably know, in the UK,
Speaker 14: we're not launching with crypto. We're very focused on US
Speaker 14: shares and the high interest product with no FX fees,
Speaker 14: but we are also expanding in the EU and we
Speaker 14: will have a crypto available in the EU in the
Speaker 14: coming weeks.
Speaker 5: How does it for this edition of Bloomberg Technology.
Speaker 4: Yet Bloomberg Technology Podcast. Check it out wherever you get
Speaker 4: your podcasts. From New York City and SF. This is
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