WEBVTT - X's Advertiser Problem and ChatGPT's One-Year Anniversary 0:00:01.800 --> 0:00:07.040 From Mahart where Innovation, money and power Collie in Silicon Valley, NBN. 0:00:07.400 --> 0:00:11.440 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.440 --> 0:00:27.280 I'm Caroline Heine Bluemug's World headquarters in New York, and 0:00:27.320 --> 0:00:28.920 I'm Ed Ludlow in San Francisco. 0:00:29.080 --> 0:00:31.200 This is Bloombay Technology. 0:00:30.680 --> 0:00:34.680 Coming up full earnings coverage ahead salesforce and jumps after 0:00:34.720 --> 0:00:38.000 forecasting profit the top estimates and showing signs of momentum 0:00:38.080 --> 0:00:39.280 in cost cutting. 0:00:39.680 --> 0:00:43.280 And Elon Musk says the advertiser boycotton X may kill 0:00:43.600 --> 0:00:45.800 the platform. Will break down his comments and look at 0:00:45.800 --> 0:00:48.480 the rollout of Tesla's cyber truck plus. 0:00:48.560 --> 0:00:52.199 Today marks one year since the public rollout of chat GPT, 0:00:52.400 --> 0:00:55.640 bringing AI into the spotlight and sparking a wave of 0:00:55.680 --> 0:00:58.800 investment and hiring. Will dig in to what that one 0:00:58.880 --> 0:01:01.520 year anniversary red means. But first that's checking on these 0:01:01.560 --> 0:01:03.640 markets because while we're coming to the end of the 0:01:03.640 --> 0:01:06.000 month here and what a month it has been, but 0:01:06.120 --> 0:01:08.080 in the short term we just perhaps give off some 0:01:08.120 --> 0:01:10.720 of those profits. We see off about nine ten percent 0:01:10.720 --> 0:01:13.680 on the Nasdaq. Look the PCE, the number, the inflationary 0:01:13.720 --> 0:01:15.199 indicator coming in basically where. 0:01:15.080 --> 0:01:16.280 The market had anticipated. 0:01:16.319 --> 0:01:18.440 So they're already priced in the good news and maybe 0:01:18.440 --> 0:01:20.080 we sell the fact we'll look at the ten yure 0:01:20.160 --> 0:01:21.959 YELD actually just bouncing up a little bit after what 0:01:22.040 --> 0:01:25.040 has been a roaring November for the bomb market as well. 0:01:25.080 --> 0:01:29.040 I mean, just phenomenal by everything rally for the November month, 0:01:29.080 --> 0:01:30.880 and we're seeing Crypto just giving off a little bit, 0:01:30.880 --> 0:01:32.959 but look hardly any movement there down a by a 0:01:33.000 --> 0:01:34.640 tenth of a percent, moving on, and I just want 0:01:34.680 --> 0:01:37.160 to give you the context of where we've been this 0:01:37.319 --> 0:01:40.319 month because an extraordinary move high that we have seen 0:01:40.600 --> 0:01:43.319 in the Nasdaq overall, and we've given well, well you 0:01:43.360 --> 0:01:45.360 see over the last actually there is Bitcoin over the 0:01:45.440 --> 0:01:49.080 last month that's up some nine percent, Nasdaq itself up 0:01:49.240 --> 0:01:52.240 well ten percent on the months, which has clearly been 0:01:52.360 --> 0:01:55.360 the best month for the Nasdaq since January, and Bitcoin 0:01:55.400 --> 0:01:57.200 as well, up more than nine percent. Really, it's been 0:01:57.240 --> 0:02:00.040 in everything rally, risk on and what about the individual movers. 0:01:59.880 --> 0:02:02.280 To It's been a really busy twenty four hours in 0:02:02.320 --> 0:02:06.200 the earnings context with Technology Snowflakes strong outlook boosting that 0:02:06.240 --> 0:02:10.840 stock up almost five percent. HPEU graded at Morgan Stanley 0:02:10.880 --> 0:02:12.880 which is adding to a two day rally. It posted 0:02:12.919 --> 0:02:15.720 results Wednesday night, you'll remember, but it is showing real strength. 0:02:15.800 --> 0:02:18.320 Then a thriller for you in the story's face, pure 0:02:18.320 --> 0:02:20.960 story is giving a weak sales outlook that really hammering 0:02:21.000 --> 0:02:24.799 the stock. And then elsewhere, big rival Newtoni's actually upgrading 0:02:24.800 --> 0:02:28.239 its billings forecast that's supporting that stock. The main earning 0:02:28.280 --> 0:02:31.359 story is Salesforce, and you're right, the story with Salesforce 0:02:31.680 --> 0:02:34.519 is that it's cost discipline, its cost cutting is showing 0:02:34.560 --> 0:02:37.679 a real path to boosting profitability. The stock up six 0:02:37.720 --> 0:02:39.840 and a half percent, putting it on track for its 0:02:39.840 --> 0:02:41.160 biggest jump since March. 0:02:41.560 --> 0:02:43.120 Is this the Mark Benioff effect? 0:02:43.280 --> 0:02:46.520 Is this him listening to the investors and acting while 0:02:46.560 --> 0:02:48.520 the stock seems to be reacting such that it is. 0:02:48.960 --> 0:02:50.919 Yeah, I mean, look at that up more than six percent. 0:02:51.040 --> 0:02:54.200 Let's get to it with our own Salesforce reporter bringing 0:02:54.280 --> 0:02:55.280 Brody Ford, and. 0:02:55.240 --> 0:02:58.280 It does seem to be this new era of cost 0:02:58.280 --> 0:03:01.880 discipline that really benefits Salesforce. Is there underlying revenue generation 0:03:01.960 --> 0:03:02.240 going on? 0:03:02.280 --> 0:03:04.440 Hit to you, that's everybody's fear, right. 0:03:04.560 --> 0:03:07.720 I mean, it was a year ago, about a year 0:03:07.720 --> 0:03:10.720 ago today that Salesforce said that their co CEO is 0:03:10.760 --> 0:03:14.239 stepping down. It kicked off as kind of unprecedented wave 0:03:14.280 --> 0:03:14.880 of chaos. 0:03:14.960 --> 0:03:16.760 Right over the period of a quarter or two. 0:03:16.880 --> 0:03:20.480 We saw executive resignations, activists, investors. 0:03:22.080 --> 0:03:27.000 Taylor is right, right, but yeah, and ultimately though they 0:03:27.080 --> 0:03:30.200 raised their profits incredibly, it made people very happy, but 0:03:30.240 --> 0:03:33.080 then it made them very scared because then revenue growth 0:03:33.080 --> 0:03:34.000 started slowing down. 0:03:34.440 --> 0:03:36.600 What we saw last night is that as long as 0:03:36.600 --> 0:03:40.320 revenue growth stays stable and profit keeps going up, well 0:03:40.320 --> 0:03:41.320 that's good enough for now. 0:03:42.240 --> 0:03:44.600 Hey Brady, how does AI play into that story? I 0:03:44.600 --> 0:03:46.440 know it's something that any off flights to talk about. 0:03:46.520 --> 0:03:46.720 Yep. 0:03:47.320 --> 0:03:49.960 Yeah, so they're really big hope here with AI is 0:03:49.960 --> 0:03:53.080 that it can help bring revenue growth back up. That's 0:03:53.160 --> 0:03:56.240 immaterial for the current year, but they're hoping that when 0:03:56.240 --> 0:03:59.080 it comes to next year, it'll help, you know, upsell 0:03:59.120 --> 0:04:01.160 people on most new so descriptions. Right, You got to 0:04:01.200 --> 0:04:04.440 pay a little extra to get the chat bar in 0:04:04.480 --> 0:04:08.400 your apps where you can use that to automate your processes, 0:04:08.480 --> 0:04:11.400 ask good questions, bring in your favorite large language models, 0:04:11.440 --> 0:04:13.960 and so there you have been pretty much putting AI 0:04:14.080 --> 0:04:16.600 into every single press release you can find and it. 0:04:17.839 --> 0:04:20.480 You know, the cat is out on whether it will 0:04:20.480 --> 0:04:22.679 truly boost revenue growth the way they hope. 0:04:23.839 --> 0:04:27.640 Doomber's brady for busy earning season. For you covering Snowflake 0:04:27.680 --> 0:04:29.479 as well, Thank you very much, all right. The other 0:04:29.480 --> 0:04:33.039 top story. Ever since Musk agreed with an anti semitic 0:04:33.120 --> 0:04:35.839 post on his social platform X earlier this month, that 0:04:35.920 --> 0:04:38.480 was November fifteenth, the billionaire has been under fire Caro 0:04:38.839 --> 0:04:42.080 from the White House, several test investors. But for the 0:04:42.080 --> 0:04:46.200 first time since that post prompted the global backlash, let's 0:04:46.200 --> 0:04:49.400 be honest, Musk has apologized to his choice of words, 0:04:49.440 --> 0:04:52.359 saying that the post was quote the worst and dumbest 0:04:52.800 --> 0:04:55.640 he's ever done. That was during the New York Times 0:04:55.720 --> 0:04:59.039 Deal Book conference in New York. He also said his 0:04:59.080 --> 0:05:03.320 trip to Israel was planned before the advertiser backlash and 0:05:03.520 --> 0:05:05.920 wasn't an apology tour. So, I mean, look, you and 0:05:05.960 --> 0:05:08.280 I were talking about this this morning at our desks. 0:05:08.720 --> 0:05:12.360 This is an apology first and foremost, and then an 0:05:12.360 --> 0:05:17.400 exploit expletive laid in message to the advertisers, which was basically, 0:05:17.600 --> 0:05:18.440 don't advertise. 0:05:18.680 --> 0:05:20.279 Yeah, he's not apologizing to them. 0:05:20.640 --> 0:05:24.120 He might be apologizing to the media, to the user base, 0:05:24.240 --> 0:05:28.799 to those that he feels have perhaps misunderstood his messaging 0:05:29.400 --> 0:05:32.200 along and certainly once again time and time again saying 0:05:32.240 --> 0:05:35.479 he's not antisemitic, but many will point to the way 0:05:35.480 --> 0:05:38.280 in which he interacts on his own social media platform 0:05:38.320 --> 0:05:41.080 as not being clear and consistent with that thought. 0:05:41.279 --> 0:05:43.120 But putting to that to one side, the fact that. 0:05:43.080 --> 0:05:46.600 He can basically bring Bob Iger's name into the conversation 0:05:46.839 --> 0:05:50.840 on stage explutive least as you say, and basically saying, look, 0:05:50.839 --> 0:05:53.280 you're the ones that are killing X. Meanwhile, I mean 0:05:53.520 --> 0:05:56.520 many would say is he the one killing X in 0:05:56.560 --> 0:05:58.960 the respect that it's his own actions that perhaps push 0:05:59.000 --> 0:06:01.440 away some of these advertisers, but also he's the guy 0:06:01.440 --> 0:06:02.599 who could perhaps sustain it. 0:06:02.640 --> 0:06:03.359 He's got the money. 0:06:04.560 --> 0:06:05.360 Yeah, I think you know. 0:06:05.480 --> 0:06:08.800 There are the debt equation of Twitter and X and 0:06:08.839 --> 0:06:11.240 how he bought it. There are the equity holders in X, 0:06:11.279 --> 0:06:14.960 the platform formerly known as Twitter. That basically what he said, 0:06:15.040 --> 0:06:18.320 and it's fair to point out. On November fifteenth, he 0:06:18.400 --> 0:06:21.039 regretted that post, but he said he immediately followed up 0:06:21.080 --> 0:06:25.200 with the clarification that the media ignored in his words, 0:06:26.279 --> 0:06:28.719 and as for Bob Byger, he basically said, hey, Bob, 0:06:28.920 --> 0:06:31.919 I'm sure you're in the audience. We think that's a 0:06:31.960 --> 0:06:35.320 reference to Disney CEO Bobbieger, though he wasn't explicit. 0:06:36.040 --> 0:06:39.240 Yeah, and probably they'd been together in the green room 0:06:39.279 --> 0:06:42.120 perhaps before of that, because Bobbigo had been speaking at 0:06:42.120 --> 0:06:43.360 the same conference as well. 0:06:43.400 --> 0:06:47.000 But all of this basically is noise around what. 0:06:47.040 --> 0:06:48.840 Is going to be a big main event for one 0:06:48.839 --> 0:06:51.040 of his key companies, Tesla. We just referenced how some 0:06:51.080 --> 0:06:53.200 investors have been concerned about the way he's been behaving 0:06:53.240 --> 0:06:55.719 on his social media platform, and we want to be 0:06:55.720 --> 0:06:57.960 bringing in Craig Trudell now on the fact that actually 0:06:58.040 --> 0:07:00.520 what he wants to dominate the headlines today is a 0:07:00.560 --> 0:07:02.120 cyber truck unveiling RNE. 0:07:03.320 --> 0:07:05.960 I don't think I'll have any trouble doing that. Of course, 0:07:06.040 --> 0:07:09.160 it's a pickup that made an awful lot of headlines 0:07:09.720 --> 0:07:13.640 going back four years now. Right, So, this was a 0:07:13.680 --> 0:07:17.600 truck that they showed very famously or infamously, I guess, 0:07:17.600 --> 0:07:20.240 depending on your view through the metal ball at the 0:07:20.280 --> 0:07:21.360 windows they cracked. 0:07:22.160 --> 0:07:22.360 You know. 0:07:22.400 --> 0:07:23.920 I think a lot of people. 0:07:23.640 --> 0:07:26.120 Who were in the room sort of gasp when this 0:07:26.400 --> 0:07:29.360 truck was first shown and you know, some weren't really 0:07:29.400 --> 0:07:30.720 sure how serious it was. 0:07:31.480 --> 0:07:32.600 It's dead serious. 0:07:32.680 --> 0:07:36.080 It's finally ready for deliveries a couple of years late. 0:07:36.840 --> 0:07:40.120 But it's no question that this one's sort of a 0:07:40.120 --> 0:07:43.720 head turner and you know, sort of as polemic a 0:07:43.800 --> 0:07:46.240 vehicle as they come, you. 0:07:46.200 --> 0:07:50.040 Know, Craig, the pickup category, be it electric, hall combustion engine, 0:07:50.160 --> 0:07:54.080 is just sacred in North America. And you know, donah 0:07:54.080 --> 0:07:57.000 Hole has written really smartly about how Musk has been 0:07:57.040 --> 0:08:00.800 signposting for like years that this is really ambitious, is 0:08:00.840 --> 0:08:02.280 not going to be easy to build. 0:08:03.640 --> 0:08:06.040 Yeah, and I think she did a great story this week, 0:08:06.320 --> 0:08:09.600 you know, really drawing parallels between you know, this is 0:08:09.600 --> 0:08:13.720 their first pick up. They had a first suv years ago, 0:08:13.760 --> 0:08:17.040 the Model X. That there's a lot of similarities in 0:08:17.080 --> 0:08:20.000 the way Musk has talked about these two, you know, 0:08:20.120 --> 0:08:22.240 with the Model X, you know, he talked about, you know, 0:08:22.320 --> 0:08:25.880 regretting the fact that they sort of overloaded it with technology, 0:08:26.200 --> 0:08:28.600 and then he's gone on to say that he's overloaded 0:08:28.800 --> 0:08:31.120 the cyber truck with an awful lot of technology. So 0:08:31.440 --> 0:08:34.599 there's a lot of ways that this, you know, manufacturing 0:08:34.640 --> 0:08:37.800 this pickup could go sideways. I think he's really sort 0:08:37.800 --> 0:08:40.000 of you know, gone out of his way to bring 0:08:40.040 --> 0:08:43.080 expectations down in terms of how quickly they'll be able 0:08:43.120 --> 0:08:45.560 to scale this up, when they'll be able to do 0:08:45.679 --> 0:08:47.960 so in a way that's not you know, burning through 0:08:48.000 --> 0:08:50.480 lots of cash, and so, you know, I think, you know, 0:08:50.520 --> 0:08:53.440 we may be surprised. There are some people who, you know, 0:08:53.520 --> 0:08:55.560 think that this thing is kind of hideous and and 0:08:55.720 --> 0:08:57.760 a bit of a monstrosity. There are some who think 0:08:57.800 --> 0:09:01.760 it's really really cool. I think, you know, there's probably 0:09:01.920 --> 0:09:03.800 going to be no trouble here with demand. For me, 0:09:03.840 --> 0:09:05.960 the question is how the heck are they going to 0:09:06.000 --> 0:09:09.280 scale this thing up and overcome the various manufacturing challenges 0:09:09.320 --> 0:09:11.000 that he's flagged going into this. 0:09:12.440 --> 0:09:15.040 Craig, we thank you. Bliombo's craigtured all On. 0:09:23.679 --> 0:09:27.320 Sam Altman is officially reinstated as CEO of open Ai, 0:09:27.520 --> 0:09:30.200 and it has a new initial board of directors, with 0:09:30.320 --> 0:09:33.720 Microsoft now joining as a non voting observer. All of 0:09:33.720 --> 0:09:37.400 this happening one year to the day after chat GPT 0:09:37.679 --> 0:09:40.360 was released and made it accessible to the public. Let's 0:09:40.360 --> 0:09:43.640 bring in Bloombo's Rachel Metz. Lots of news out overnight, 0:09:43.720 --> 0:09:45.880 and you had an interview with Sam Altman. 0:09:46.920 --> 0:09:49.880 He did, Yeah, there's a lot going on at OPENINGI 0:09:50.640 --> 0:09:53.080 A lot of it is rubber stamping in a sense 0:09:53.080 --> 0:09:56.440 of things that we had already learned that Sam Altman 0:09:56.480 --> 0:09:59.240 is now officially back at the company as a CEO, 0:09:59.760 --> 0:10:02.880 and and Greg Brackman, who had been president, is also 0:10:02.880 --> 0:10:06.080 back at the company. Miramrati, who was very very briefly 0:10:06.160 --> 0:10:10.400 interim CEO, is now back as a chief Technology officer, 0:10:10.840 --> 0:10:12.679 and a bunch of other things that you just recount. 0:10:13.400 --> 0:10:15.720 I'm a whole bunch of other things. 0:10:15.880 --> 0:10:20.600 I mean, notably, Microsoft comes on as a non voting observer. 0:10:20.920 --> 0:10:24.360 Still a lack of diversity at the interim board level 0:10:24.559 --> 0:10:27.800 as we can currently see, but I'm interested that they 0:10:27.840 --> 0:10:30.839 are saying is certainly Brett Taylor was writing alongside some 0:10:30.960 --> 0:10:33.719 Mountman in a post that look, prepare yourself. We are 0:10:33.760 --> 0:10:35.600 going to be diverse, and we're also going to look 0:10:35.600 --> 0:10:38.560 into why any of this upheaval happen to begin with. 0:10:39.880 --> 0:10:43.600 Yes, absolutely so on the first point, diversity and just 0:10:43.720 --> 0:10:46.560 enlarging the board. When I spoke to Sam yesterday, and 0:10:46.600 --> 0:10:49.120 also I got to speak briefly to Larry Summers, who's 0:10:49.160 --> 0:10:51.560 one of the new board members. They both said that 0:10:51.600 --> 0:10:55.400 they're planning to enlarge the board significantly. Wouldn't give a 0:10:55.480 --> 0:10:57.880 number on how many people will be in it eventually, 0:10:58.240 --> 0:11:01.600 but they're definitely planning to add people. Or as to 0:11:02.040 --> 0:11:05.400 the other point that you were making, now I'm blinking 0:11:05.400 --> 0:11:06.200 on what that was. 0:11:07.480 --> 0:11:08.560 Go back now. 0:11:09.400 --> 0:11:12.880 I mean, it's so what you have covered and the 0:11:12.960 --> 0:11:15.080 amount that you have covered over the last few days, 0:11:15.120 --> 0:11:17.440 no wonder you're going to be blanking. But really, Larry 0:11:17.480 --> 0:11:19.480 Summer's coming on board, many feeling is sort of like 0:11:20.160 --> 0:11:23.240 the experienced board director and himself thinking about the way 0:11:23.240 --> 0:11:26.560 in which this board can be expanded and thought upon. 0:11:26.600 --> 0:11:28.079 And he says, like, give us a minute. We've only 0:11:28.080 --> 0:11:29.960 been in the board of interim board for about half 0:11:30.000 --> 0:11:31.600 an hour. I think, what's the coak that he gave you. 0:11:31.679 --> 0:11:33.600 Rachel Metz, we thank you so much for your time 0:11:33.640 --> 0:11:37.240 and of course continued conversation that she manages to have 0:11:37.280 --> 0:11:40.360 with these key executives. Let's get another key angle from Sarahkrat's, 0:11:40.440 --> 0:11:43.080 Professor of Government and director of Tech Policy Institute over 0:11:43.120 --> 0:11:46.079 at Cornell University. And Sarah, you yourself were you were 0:11:46.200 --> 0:11:49.640 back in the day before open AI became a for 0:11:49.840 --> 0:11:55.000 profit business. You were helping alongside early open ai employees 0:11:55.240 --> 0:11:59.400 co author research documents, thinking about ultimately how generative AI 0:11:59.480 --> 0:12:03.320 can work in hand and be good for humanity. How 0:12:03.360 --> 0:12:08.040 has the era of chatchpt fast forward in what you 0:12:08.080 --> 0:12:10.079 thought was achievable in artificial intelligence? 0:12:11.440 --> 0:12:14.440 Right? No, So, I started working with OpenAI back in 0:12:14.480 --> 0:12:17.800 twenty eighteen when it was still the nonprofit, and then 0:12:17.840 --> 0:12:21.520 in twenty nineteen it became the for profit. I've but 0:12:21.920 --> 0:12:25.160 I think as the company it's really almost only a 0:12:25.280 --> 0:12:29.160 year old because it was so formative in that time. 0:12:29.200 --> 0:12:32.760 Between twenty fifteen and twenty twenty two, most people hadn't 0:12:32.800 --> 0:12:35.920 heard of it. We were writing and researching, and then 0:12:36.000 --> 0:12:40.640 in twenty twenty two, chat gpt became this consumer facing 0:12:40.960 --> 0:12:44.840 platform that was so easy to use, so user friendly, 0:12:44.960 --> 0:12:47.679 and it just took off the fast setting records for 0:12:47.760 --> 0:12:50.400 its uptake one hundred million users within the first two 0:12:50.400 --> 0:12:53.760 months and now one hundred million users per week, which 0:12:53.800 --> 0:12:54.800 is really astonishing. 0:12:55.920 --> 0:12:57.880 It's incredible to track how far we've come in the 0:12:57.920 --> 0:12:59.920 space of the year. But much of the last two 0:13:00.320 --> 0:13:03.480 events put the spotlight on what's to come next, the 0:13:03.520 --> 0:13:07.000 next generation of large language model on the board issue 0:13:07.000 --> 0:13:09.920 this is what Brett Taylor, whose interim chair of Open 0:13:09.920 --> 0:13:13.640 Aiyes Board, said, we will build a qualified, diverse board 0:13:13.720 --> 0:13:18.760 of exceptional individuals reflecting open ais message from technology to policy. 0:13:18.800 --> 0:13:22.040 That last bit, technology to policy. Why is the makeup 0:13:22.080 --> 0:13:26.640 of Open Aiyes Board important to their success in developing 0:13:26.679 --> 0:13:27.439 the technology? 0:13:28.840 --> 0:13:31.679 Yeah. I think what we saw in those two weeks, 0:13:31.679 --> 0:13:33.559 in these last two weeks was just that kind of 0:13:33.679 --> 0:13:36.400 tug of war on was between the two visions of 0:13:36.640 --> 0:13:39.480 what AI should look like. And there have been a 0:13:39.480 --> 0:13:41.600 lot of discussions about how much of that was just 0:13:41.679 --> 0:13:44.319 kind of a myth and outsiders reading things that weren't there. 0:13:44.360 --> 0:13:46.480 But it does seem like there are these two real 0:13:46.520 --> 0:13:50.080 philosophies about how quickly to move, and that the philosophy 0:13:50.120 --> 0:13:53.720 about moving quickly seems to have one out. And I 0:13:53.760 --> 0:13:57.200 think what the board should do, or its intended role, 0:13:57.440 --> 0:13:59.920 is to be kind of a rudder in shoppy water 0:14:00.240 --> 0:14:03.160 or what could be choppy waters. But I think where 0:14:03.200 --> 0:14:06.200 the nonprofit board, the former board got in the way 0:14:06.520 --> 0:14:09.640 was that its vision was so at odds or seemed 0:14:09.640 --> 0:14:12.040 to be at odds with not just the direction Open 0:14:12.080 --> 0:14:14.640 AI is going, but AI in general. And so I 0:14:14.640 --> 0:14:16.679 think right now We're in a real arms race, and 0:14:16.720 --> 0:14:20.080 the I think legitimate perspective of the Open AI people 0:14:20.080 --> 0:14:23.880 who have stayed is that this technology is developing quickly, 0:14:24.080 --> 0:14:26.680 whether we're on board or not, and so we might 0:14:26.720 --> 0:14:30.360 as well be. We Open AI be leading and trying 0:14:30.400 --> 0:14:35.120 to do it responsibly. So you know, the nonprofit or 0:14:35.120 --> 0:14:37.080 what was the not what is the nonprofit board, but 0:14:37.120 --> 0:14:39.480 the former board I think it wasn't that they didn't 0:14:39.520 --> 0:14:41.320 want to develop AI, but I think they just had 0:14:41.360 --> 0:14:43.160 different ways of doing it. So the new board will 0:14:43.160 --> 0:14:46.200 come in and try to i think, be more compatively 0:14:46.240 --> 0:14:49.720 aligned with that, with the direction that the company and 0:14:49.800 --> 0:14:51.680 with the direction the AI is going. 0:14:52.280 --> 0:14:54.560 And of course much of the hand wringing around AI 0:14:54.760 --> 0:14:57.480 and safety has been a worry about bias. That is 0:14:57.520 --> 0:14:59.840 why many people are saying, you need to have minor 0:15:00.320 --> 0:15:02.680 at the table. You need to ensure that all voices 0:15:02.680 --> 0:15:06.400 are heard. Here we re established at the interim board 0:15:06.440 --> 0:15:09.080 as it stands, looks pretty undiverse, one of them being 0:15:09.120 --> 0:15:11.960 Larry Summers the course, a paid contributor of Bloomberg. I'm 0:15:12.000 --> 0:15:14.920 interested as to what you think, Sarah will be the 0:15:14.960 --> 0:15:17.000 next situation. Will open AI be able to be as 0:15:17.040 --> 0:15:20.080 agile going forward. Do you think after this, No, I 0:15:20.080 --> 0:15:20.520 think there. 0:15:20.480 --> 0:15:22.760 Has to be a real goal and I think for 0:15:22.840 --> 0:15:25.520 them and in general, the diversity is not an end 0:15:25.520 --> 0:15:29.320 in itself, but it does give you different perspectives. Some 0:15:29.360 --> 0:15:32.440 of the early versions of AI really did, I think, 0:15:32.520 --> 0:15:35.520 warrant some criticism about bias and discrimination. So I think 0:15:35.560 --> 0:15:38.040 there is a lot of attentiveness to that. So it's 0:15:38.040 --> 0:15:41.360 important for that board to be able to read team 0:15:41.520 --> 0:15:46.640 different ideas and present different perspectives without being misaligned. I 0:15:46.680 --> 0:15:49.080 know alignment is a big term in the AI world, 0:15:49.120 --> 0:15:52.240 but just kind of contributing to a different set of 0:15:52.280 --> 0:15:55.800 perspectives that can kind of be a force for good 0:15:56.080 --> 0:15:58.560 while not holding back the technology. 0:15:59.560 --> 0:16:02.560 Sarah As, Professor of Government and Director of the Technolicy 0:16:02.600 --> 0:16:04.120 Institute at Cornell University. 0:16:04.200 --> 0:16:05.480 Thank you so much. 0:16:05.640 --> 0:16:08.440 This is Bloomberg Technology. 0:16:21.360 --> 0:16:24.680 It's time to turn to the intersection of artificial intelligence 0:16:24.720 --> 0:16:28.440 and healthcare. Phillips is exploring the technologies potential in when 0:16:28.480 --> 0:16:31.480 of course, when it comes to wearables, imaging, hospital task automation. 0:16:31.840 --> 0:16:32.960 We're pleased to welcome to the show. 0:16:33.040 --> 0:16:35.840 Roy Yakovs is Phillips CEO, marking one year at the 0:16:35.840 --> 0:16:38.120 helm of the company, a company that is now fully 0:16:38.160 --> 0:16:42.440 focused on the medical use and healthcare applications, and AI 0:16:42.560 --> 0:16:44.480 is a key driver in that. Just tell us how 0:16:44.520 --> 0:16:48.360 already you're working with well the departments in some ways 0:16:48.400 --> 0:16:50.520 of those that are looking at tracking using an or 0:16:50.680 --> 0:16:52.640 ring or whether it be a garment watch, how are 0:16:52.680 --> 0:16:55.480 you already working with governments and indeed consumers. 0:16:56.040 --> 0:16:59.040 So we are in un monitoring business. 0:16:59.120 --> 0:17:02.400 We have a wrong collaboration where we can actually include 0:17:02.440 --> 0:17:08.720 all the data from any Apple devices or rings devices 0:17:08.720 --> 0:17:10.680 that you're using in the house or in the home 0:17:11.600 --> 0:17:15.920 to insert that into a patient context to understand how 0:17:15.960 --> 0:17:18.919 that actually makes a better diagnosis or full patient picture. 0:17:19.800 --> 0:17:23.000 Were also remotely monitoring in the home, for example, for 0:17:23.119 --> 0:17:28.880 cardiac rhythm problems to early pick up signals that can 0:17:28.920 --> 0:17:33.320 actually then prevent deterioration later. So bringing here to the 0:17:33.320 --> 0:17:35.840 home is a big part of what we're doing, making 0:17:35.840 --> 0:17:39.120 sure that actually we start the journey as early as 0:17:39.160 --> 0:17:42.000 possible so that actually you can prevent deerioration. But then 0:17:42.000 --> 0:17:44.240 also in the hospital we see that actually AI is 0:17:44.320 --> 0:17:47.640 picking up very quickly. Just coming out of Chicago where 0:17:47.680 --> 0:17:50.560 we had a very big show around how we can 0:17:50.600 --> 0:17:55.400 improve imaging because there's a huge demand for more images. 0:17:55.440 --> 0:17:59.240 But actually the hospital sector is really challenged to have 0:17:59.359 --> 0:18:02.560 enough radiologist or technicians to do all the cats. 0:18:03.119 --> 0:18:04.600 So that's where AI can come. 0:18:04.480 --> 0:18:07.000 To the rescue to really make a productivity difference. 0:18:07.600 --> 0:18:10.399 I think of how I use my connected wearables, and 0:18:10.440 --> 0:18:12.280 some of that's to track my sleep. Now I want 0:18:12.320 --> 0:18:13.800 to shift gears a little bit because there has been 0:18:13.840 --> 0:18:16.639 a safety issue involving your dream Station two. This is 0:18:16.680 --> 0:18:20.160 about sleep apnea and the machine there. The FDA having 0:18:20.200 --> 0:18:23.639 a certain reports of overheating, worrying about fire smoke burns. 0:18:24.000 --> 0:18:26.800 There's also been other concerns around just sleep at near products. 0:18:26.800 --> 0:18:29.400 How are you tackling that as the CEO right now? 0:18:30.200 --> 0:18:32.960 Yeah, when I came into the office, I said, first 0:18:32.960 --> 0:18:35.400 priority is patient safety quality, so I put a world 0:18:35.440 --> 0:18:37.919 class team on it to work through the challenges. We 0:18:37.920 --> 0:18:40.280 also said we need to get very proactive and identifying 0:18:40.320 --> 0:18:41.800 what is out here so that actually we can. 0:18:41.760 --> 0:18:43.520 Address it and put the quality on up. 0:18:43.960 --> 0:18:46.600 So it's about how we identify and then make sure 0:18:46.640 --> 0:18:50.840 that we across the company provide the best quality care 0:18:50.960 --> 0:18:53.399 and make sure that in the daily practices when we 0:18:53.480 --> 0:18:55.679 work with customers and in the context that they have, 0:18:55.960 --> 0:18:58.240 we can make sure that actually they can rely on 0:18:58.240 --> 0:19:01.440 our products, so that's something we have doing in our strategy. 0:19:01.440 --> 0:19:03.720 You also have seen that from the recent quarters we 0:19:03.760 --> 0:19:06.080 have been seeing quite an uptake in the performance of 0:19:06.119 --> 0:19:07.480 the company because we have. 0:19:07.440 --> 0:19:10.280 Been able to start growing again. Now we have four 0:19:10.359 --> 0:19:13.639 quarters of growth. We have up the guidance twice. 0:19:13.800 --> 0:19:16.840 But also that what's under the premise that basic safety 0:19:16.840 --> 0:19:21.280 and quality, supply chain improvements and simplification of the organization 0:19:21.320 --> 0:19:23.680 are really important to drive better impact for care. 0:19:25.160 --> 0:19:28.560 Mister Jacob's good morning from San Francisco. That issue, the 0:19:28.560 --> 0:19:31.880 most recent was on the thermal issue of your current generation, 0:19:32.040 --> 0:19:34.639 but it's kind of brought back the discussion about the 0:19:34.680 --> 0:19:38.760 recall of two years ago over the polyphone deterioration. 0:19:39.440 --> 0:19:40.800 There's a large body. 0:19:40.480 --> 0:19:44.280 Of academic work that shows a latency in the cancers 0:19:44.800 --> 0:19:49.480 that arise from exposure to deteriorating polyphone periods of twenty 0:19:49.600 --> 0:19:53.879 to forty years down the road. Is Phillip's conscious of 0:19:53.880 --> 0:19:55.239 that latency. 0:19:55.880 --> 0:20:01.600 So we have done extensive testing towards the health risk 0:20:01.840 --> 0:20:05.440 of degradation of the p perform. We've also come forward 0:20:05.440 --> 0:20:08.480 with our testing which actually shown that there's no peaceable 0:20:08.560 --> 0:20:11.760 harm from the usage of our devices. So that's something 0:20:11.760 --> 0:20:14.040 that we have done over three period with very strong 0:20:15.200 --> 0:20:18.879 evidence created together with the best scientific bodies, external bodies 0:20:18.920 --> 0:20:22.240 and toxicologists to make sure that actually we have no 0:20:22.400 --> 0:20:27.440 patients patient safety home for our users. Also from there, 0:20:27.480 --> 0:20:31.200