Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and ever Low in sentences.
Speaker 2: Go this is Bloomberg Tech coming up.
Speaker 3: Bloomberg News pulls back the curtains on Apple's revamped Siri
Speaker 3: design ahead of its WWDC debut.
Speaker 4: Plus Snowflake jumps the most It's twenty twenty after the
Speaker 4: software maker gave a stronger outlook and sign a six
Speaker 4: billion dollar deal with Amazon.
Speaker 5: We'll hear from the CEO.
Speaker 3: And Meta introduces paid chatbot subscriptions to help offset its
Speaker 3: AI infrastructure costs.
Speaker 4: First we look at infrastructure and how actually an infrastructure
Speaker 4: deal with Amazon is helping summon the narrative around Snowflake.
Speaker 4: Extraordinary move, the biggest jump in the stock since twenty twenty.
Speaker 4: We're looking at thirty four percent gain after a thirty
Speaker 4: four percent in product revenue for this company. It was
Speaker 4: a beat, it was a raise, and there's real acceleration
Speaker 4: in people using their AI coding tool. In particular, twenty
Speaker 4: two billion dollars added in a market cap so much
Speaker 4: to digest today.
Speaker 2: Ed a lot of news headlines this morning.
Speaker 3: One coming from the information that Microsoft next week is
Speaker 3: going to introduce a coding model, a model focused on coding,
Speaker 3: a marketplace we've covered so much of late the stock
Speaker 3: off session highs that we saw gains three and a
Speaker 3: half almost four percent, So the market taking it seriously.
Speaker 2: If we hear more, will give you more.
Speaker 4: Well, and now we can give you more on what
Speaker 4: to expect with Apple's Siri overhaul, because it's going to
Speaker 4: take center stage in the company's next major software update,
Speaker 4: and Bloomberg News has details on what to expect ahead
Speaker 4: of the WWDC debut.
Speaker 5: Now, these Bloomberg.
Speaker 4: Created illustrations, they offer a look at the revamped Sery interface,
Speaker 4: including a new chatbot style app that the images that
Speaker 4: you're currently looking at they're based on information viewed by
Speaker 4: Bloomberg and people with knowledge of the company's plans.
Speaker 5: Well those plans.
Speaker 4: It's Bloomberg Consumer Tech and Apple Managing editor Mark German.
Speaker 5: So the look the feel is really building.
Speaker 4: On some of the updates we've had in the past
Speaker 4: and improving them.
Speaker 6: Well, I'll just say this, this is an incredibly exciting
Speaker 6: moment for Apple.
Speaker 7: I think consumers should be pumped.
Speaker 6: What Apple is doing here is they've seen everything that
Speaker 6: Open Ai and Google and Anthropic have done. They believe
Speaker 6: that AI has a place at the center of its products,
Speaker 6: and they're finally going to implement that.
Speaker 7: So this is a really big deal for consumers.
Speaker 6: People have been clamoring for a version of Siri that
Speaker 6: works properly for the better part of fifteen years, and
Speaker 6: my strong belief as we are finally going to get
Speaker 6: this fall So I see this as a major development
Speaker 6: and accomplishment for Apple in its quest to try to
Speaker 6: bring AI to the masses, taking a slightly different tack
Speaker 6: than their rivals in the space.
Speaker 3: There's two parts to this, as you report it. There's
Speaker 3: the standalone Siri app, let's say it's a kin to
Speaker 3: a chat GPT app. And then there's how you interact
Speaker 3: with Siri on the screen of your phone. You know, however,
Speaker 3: you open up the phone, we're going to go through
Speaker 3: some of the images that you included in the story,
Speaker 3: But could you just explain those two parts that we're detailing,
Speaker 3: and as we cycle through the images, we're showing them on.
Speaker 2: The screen right now.
Speaker 3: Again, these are Bloomberg generated images based on our reporting,
Speaker 3: both discussions with sources and documentation that we viewed but
Speaker 3: those two new features.
Speaker 6: Please, So to launch Sirie today, you say, obviously the
Speaker 6: SII wake word or Hey Siri if you have an older.
Speaker 7: Device, or you can hold down the power button.
Speaker 6: That continues, and there's a new animation that pops out.
Speaker 7: Of the dynamic island.
Speaker 6: Obviously they added that with the fourteen proback in twenty
Speaker 6: twenty two, so this is with modern iPhone hardware in mind.
Speaker 6: The second thing you can do was swipe down from
Speaker 6: the top center of the iPhone. So how you open
Speaker 6: notifications today will be how you open a new serie
Speaker 6: interface called search or Ask, and that essentially takes you
Speaker 6: into a type to serie interface basically a system wide
Speaker 6: AI agent. You can tell it to get things done
Speaker 6: on your behalf. You can do searches on your device
Speaker 6: as well as the open Web. So there's a perplexity
Speaker 6: competitor from Apple, built by Apple, developed by Apple, designed
Speaker 6: by Apple in there as well. And then there's the
Speaker 6: serie app. You know, chatbots have taken the world by storm.
Speaker 6: Chat GPT has nearly a billion users. People are using Gemini,
Speaker 6: people are using claud. This is clearly something that people want.
Speaker 6: So this is a product an app in line with
Speaker 6: what you're getting from Google Gemini.
Speaker 7: Obviously, as we reported last year, the.
Speaker 6: Underlying models for a lot of these new technologies in
Speaker 6: Siri are powered by Gemini and running on Google's cloud infrastructure.
Speaker 4: How worried should like a chat che should open aib
Speaker 4: right now? You reported that maybe they even considering legal action.
Speaker 4: Is this going to be a real standalone competitor.
Speaker 6: Well, we've seen this time and time again where Apple
Speaker 6: releases a standalone app of its own that's built into
Speaker 6: the operating system. I think chat GPT has the strongest brand.
Speaker 6: Serie doesn't have a very strong brand. I still think
Speaker 6: they should, you know, rebrand the whole effort. That's neither
Speaker 6: here nor there, at least for now, but definitely having
Speaker 6: a chatbop built into iOS, mac os, iPad os north
Speaker 6: of two billion devices that is threatening. I would say
Speaker 6: to Gemini to chat GPT and to Claude, especially if
Speaker 6: over time Apple is able to make it really competitive
Speaker 6: to what you're seeing to chat GPT.
Speaker 7: So we'll have to see how this plays out.
Speaker 6: Over time, but at least, you know, in the short term,
Speaker 6: a lot of people are going to be introduced to
Speaker 6: the concept of a chat or a conversational AI interface
Speaker 6: who haven't used it before, despite the popularity of church.
Speaker 3: Gipt, Bluebo's Mark Gumman, Thank you very much. Let's get
Speaker 3: to another story. Shares a Salesforce up about a percentage point,
Speaker 3: kind of a muted move, and you're gonna understand why.
Speaker 3: In a few minutes time, the company gave a revenue
Speaker 3: outlook for the current period that just fell short of
Speaker 3: an this estimates Bloemberg's Brady Ford covering Salesforce with us.
Speaker 3: Now we're kind of waiting for a different story in
Speaker 3: a minute's time, which might give us some context on
Speaker 3: that move. But what was the story of Salesforce? Forget
Speaker 3: the outlook the numbers. What were they saying?
Speaker 8: Application companies are trying to reinvent themselves as AI companies,
Speaker 8: and so Salesforce came out and said, we have an
Speaker 8: AI product that's kind of ramping and revenue.
Speaker 7: We have all these.
Speaker 8: Positive traction points, but our core products, for you know,
Speaker 8: sales and service are slowing down, and so it's how
Speaker 8: quickly can they reinvent themselves At this point, not very
Speaker 8: I mean their app a percentage point today, but if
Speaker 8: that chart zooms out, it has not been a rosy
Speaker 8: picture for Salesforce, and the last year or two it's down.
Speaker 5: Thirty percent year to date.
Speaker 4: Brody, I loved your content on LinkedIn, just showing that,
Speaker 4: like basically all earnings caols are now turning into podcasts,
Speaker 4: so they're.
Speaker 5: Trying to reframe and rebrand the way in which they
Speaker 5: present these results.
Speaker 4: But like many off is saying, this is still a
Speaker 4: record quarter, So how do we get more confident that.
Speaker 5: There is going to be that.
Speaker 4: Second half inflection on organic growth?
Speaker 8: Yeah, it's just that reacceleration story, right, I mean, their
Speaker 8: biggest products keep slowing down, They've done acquisitions, they've added
Speaker 8: new products, and so there's kind of a lot of
Speaker 8: rosy things to look at. But until that kind of
Speaker 8: core sales, cloud service, cloud that really built their house,
Speaker 8: until that speeds back up due to AI, they're going
Speaker 8: to stay in that penalty box.
Speaker 3: Should we just very quickly talk about the actual story today?
Speaker 3: Teams throw it up on the screen. Snowflake is going
Speaker 3: absolutely parabolic.
Speaker 9: Yep.
Speaker 8: Why, it's a tale of two cities, right, I Mean
Speaker 8: snow makes data infrastructure software, So a lot of companies
Speaker 8: have their most important data sitting in Snowflake and they
Speaker 8: have to use it if they want to do all
Speaker 8: these cool AI features on top of it. And we're
Speaker 8: seeing in the numbers that demand for Snowflake's products is
Speaker 8: kind of going gangbusters. So they had a great day.
Speaker 4: They did, and Brodiefd, you're gonna stick with us to
Speaker 4: talk about a little bit more Snowflake so you can
Speaker 4: see that move means it's added twenty two billion dollars
Speaker 4: to its market capitalization. I mean after beating and expectations.
Speaker 4: They've also locked in that massive six billion dollar infrastructure
Speaker 4: deal with Amazon. We could talk about that with Brody
Speaker 4: in a minute, but first of all, just take from
Speaker 4: the Snowflake CEO himself, Shieto Ramaswami.
Speaker 5: We spoke to Melia.
Speaker 7: First of all, they're.
Speaker 9: A longtime partner. They are the biggest cloud service provider
Speaker 9: that be run on top of and on on top
Speaker 9: of Azura as well as GCP. The really important thing
Speaker 9: with Amazon is how we go to our customers.
Speaker 2: Together.
Speaker 9: Bothrians are extraordinary value that we deliver for our customers,
Speaker 9: and with deals like this we get massive economies of
Speaker 9: scale that let us pass on some of these savings
Speaker 9: back to our customers. We ounced a huge change in
Speaker 9: how we price AI that makes AI a lot less
Speaker 9: expensive for our customers. It's aided by deals like this
Speaker 9: because of this ability to bulk purchase confidently, which, as
Speaker 9: I said, in turn, we give to our customers create
Speaker 9: amazing products on top.
Speaker 2: This deal makes us much more effective.
Speaker 9: Together, Amazon is interested in solving customer problems, and having
Speaker 9: a data platform is a key part of solving customer problems,
Speaker 9: us being able to go to market together. We work
Speaker 9: at every level of the hierarchy. Matt and I are garment,
Speaker 9: the CEO and I are in constant touch, but so
Speaker 9: on our teams. It's that ability to collaborate at a
Speaker 9: deep level to solve complex problems, for example, like ed
Speaker 9: data migration that makes us pretty unique.
Speaker 2: It is truly a better gather story.
Speaker 3: What timing Caroline's conversation with the CEO of snowfake and
Speaker 3: audio issues there that's tech happens.
Speaker 2: Is this stock up thirty five.
Speaker 3: Percent because of a compute deal with AWS or is
Speaker 3: it up for a different reason, Like it's really difficult
Speaker 3: in this moment to see the impact of that relationship
Speaker 3: in how the market's cheering the name today.
Speaker 8: It seems that most of the rally is due to
Speaker 8: their own products and the fact that they have a
Speaker 8: pretty strong outlook. But the Amazon deal is interesting because
Speaker 8: a big part of the software story right now is
Speaker 8: when you're spending all of this money on LMS on
Speaker 8: AI features, that does hurt your margins, and so anything
Speaker 8: that companies are able to do to get economies of
Speaker 8: scale and drive costs down, which appears to be what's happening,
Speaker 8: that's also good news.
Speaker 5: I mean, ed will know this more than anyone.
Speaker 4: The graviton offering that comes from AWS and the idea.
Speaker 4: In your story, you make clear that maybe they're pushing
Speaker 4: towards that because of.
Speaker 5: These efficiency gains.
Speaker 4: And we're going to hear from Shreidar a little bit
Speaker 4: later in the show about that brody, but well, broady,
Speaker 4: how are we seeing the adoption of coding tools Cortex
Speaker 4: in particular seven thousand more than subscriptions?
Speaker 5: Is that a lot? When you're thinking about the competitors
Speaker 5: out there.
Speaker 8: It's interesting because a lot of application platforms, they've had
Speaker 8: their own tools like a coding assistant or other productivity
Speaker 8: tools right and there in the platform. In a lot
Speaker 8: of cases, we hadn't seen great uptake for it. And
Speaker 8: so Snowflakes saying, Hey, actually the coding tool that we're
Speaker 8: putting on here is being used. It is driving revenue.
Speaker 8: That's kind of new. We haven't seen that from a
Speaker 8: ton of other companies. And so I think that's a
Speaker 8: pretty significant positive point that's being reacted to here.
Speaker 5: And you just think about where Shreidar comes from.
Speaker 4: Like his whole business AI business was bought by Snowflake
Speaker 4: neither before, So no wonder he's managing to integrate at
Speaker 4: Bloomberg's brody Ford.
Speaker 5: Great Nawk, thanks for joining now.
Speaker 4: Coming up, Navy is going to be joining us making
Speaker 4: a major push towards electric marine travel, deploying one hundred
Speaker 4: electric vessels are across the Maldives. How nice because speaking
Speaker 4: with the CEO next, that's Bloomberg Tech.
Speaker 3: US based maritime technology company Navier is deploying one hundred
Speaker 3: electric vessels across the Maldives to build an inter island
Speaker 3: transportation network linking airports, resorts, local communities. Roll up marks
Speaker 3: a major milestone for electrified marine mobility. Joining us now
Speaker 3: as Navy CEO some pretty badasharia back on Bloomberg Tech,
Speaker 3: and with respect, last time you're on the program. Nava
Speaker 3: was in a very different place just getting started. Fast forward,
Speaker 3: you're going to put one hundred of your vessels in
Speaker 3: a really interesting market, and you're really ramping up commercially
Speaker 3: with one hundred million dollar deal.
Speaker 2: Let's start with Moldives. Piece.
Speaker 3: When we lost FOT, you weren't looking at this kind
Speaker 3: of luxury into island market.
Speaker 2: Now you are.
Speaker 10: Why Actually we always saw the potential for you know,
Speaker 10: transportation with the N.
Speaker 11: Thirty for islands.
Speaker 10: But what is interesting here is that Maldives is this
Speaker 10: place where there's a natural need for the technology, and
Speaker 10: that aligns very well with our vision. You know, it
Speaker 10: has a vision for twenty thirty net zero and there's
Speaker 10: over a thousand islands today, there is over you know,
Speaker 10: two thousand, eight hundred gas guzzling boats. The fit is
Speaker 10: so on spot, and you know, we are very grateful
Speaker 10: for the partners we found who have like the you
Speaker 10: know JIH who have the similar vision of like developing
Speaker 10: the country's infrastructure.
Speaker 4: Let's talk about the N thirty Pioneer edition. What does
Speaker 4: it show in terms of performance? What does it do
Speaker 4: that's unlike anything that's on the market.
Speaker 10: Yeah, absolutely, you know, at a high level, our goal
Speaker 10: at NAVIA is to build a standardized foundational layer I
Speaker 10: would say the best possible platform on the water with
Speaker 10: you know, dual use case, whether that's transportation or defense.
Speaker 11: And we are very focused on.
Speaker 10: Making this reliable, long range and applicable for different kind
Speaker 10: of sea states. So this is not just the deployment
Speaker 10: of the boat, but this is also the deployment of
Speaker 10: a network.
Speaker 11: So usually when you go somewhere.
Speaker 10: You know you have one of boats that takes you
Speaker 10: to an island, but in this case, it's more like
Speaker 10: what you see in the land.
Speaker 11: What do you see in the air? Right?
Speaker 10: You have United Airlines, you have Black Lane, you have
Speaker 10: four seasons on the land right, But when it comes
Speaker 10: to the water, there is no standardization.
Speaker 11: And what is different is that you know.
Speaker 10: You are in this beautiful resource right, which are so
Speaker 10: into sustainability, and then you get on the water and there's.
Speaker 11: A huge disconnect.
Speaker 10: And that's where we really come in. You know, that
Speaker 10: experience part of.
Speaker 3: It some pretty How much pressure are you under to
Speaker 3: deliver for JIH and the Moldives project, like a hundred
Speaker 3: of these are they built? How quickly do you build them?
Speaker 3: Where do they get built? How do they get to
Speaker 3: the Moltives give us a sense of how real this is.
Speaker 10: Yes, absolutely, so, just to give a background, you know,
Speaker 10: jih is led by Mama Dali Jihana. He's one of
Speaker 10: the most influential business leaders of Maldives who have literally
Speaker 10: known as the man who built Maldives, driving force behind
Speaker 10: most of the prestigious hotels and resorts like the World
Speaker 10: War four seasons, and they have also a presence in
Speaker 10: the GCC. So I'm really working very closely with them
Speaker 10: the first year, this very year, we're starting with five vessels.
Speaker 10: The first one is going to get there you know,
Speaker 10: end of summer, and then we are going to test
Speaker 10: out this fleet and at the same time we will
Speaker 10: be working very closely with you know jih to plan
Speaker 10: out the infrastructure, the routes and then the you know,
Speaker 10: deployment is phased over the next three years. So there
Speaker 10: is a bit of like the infrastructure planning, route planning
Speaker 10: and then the software lure of it.
Speaker 11: Right, So we want to make this.
Speaker 10: A very seamless experience where Malis really become almost like
Speaker 10: the you know, it becomes a playbook of how to
Speaker 10: replicate this in you know, many other places.
Speaker 4: Well, how do you replicate that into a defense narrative
Speaker 4: not just luxury briefly.
Speaker 10: Right, because you know, if you go back to it,
Speaker 10: the company is really focused on what we called building
Speaker 10: the generalized marine vessel platform and the that is the
Speaker 10: standardized core.
Speaker 11: Right.
Speaker 10: If you forget the if you strip it to the
Speaker 10: physics of it. The role of a vessel is to
Speaker 10: carry per unit payload pernit mile reliably efficiently and go
Speaker 10: the longest distance at speed. What do you put on
Speaker 10: top of that, Like people often get caught into this, Oh,
Speaker 10: is it is it a luxury boat?
Speaker 11: It looks too pretty. No, forget it, it's just your physics,
Speaker 11: you know, it's just.
Speaker 10: The physics of the vessel, right, And our goal is
Speaker 10: to get as many vessels out there as possible for
Speaker 10: us to win as a generational maritime company. What you
Speaker 10: have seen today in asymmetric warfare, Right, we have to
Speaker 10: move away from exotic vessel building to standardize you know,
Speaker 10: scalabild systems, and that you can only do when you're
Speaker 10: going to dual use and commercial use cases forces you
Speaker 10: to like ruthlessly cut down cost.
Speaker 11: So that's a big part of it. When you have
Speaker 11: dual use platforms.
Speaker 10: You streamline everything the building, maintenance, supply chain and so on.
Speaker 4: So some realty fascinating, some reti battetaria. Thank you for
Speaker 4: joining us and Ivia and discussing the mold. These move meanwhile,
Speaker 4: from electric vessels to electric vehicles. Weimo set to deploy
Speaker 4: new autonomous vehicles purpose built forever taxi use without human supervision.
Speaker 5: Now topped the OHI.
Speaker 4: The cars will be made available to select riders in
Speaker 4: San Francisco, Los Angeles and Phoenix. You were one of
Speaker 4: those select individuals. Talk us through the ride you took
Speaker 4: and am I saying it right?
Speaker 3: Yeah, o hi ohi as in the city in SoCal
Speaker 3: but also like oh hi. But for Weimo, like this
Speaker 3: is very serious, right, this is the next phase of
Speaker 3: them scaling. So the Bloomberg Tech audience has probably seen
Speaker 3: one of the white Weimo Jaguar Eye paces. This is
Speaker 3: a vehicle that Weimo developed with Zeka, an arm of
Speaker 3: China's Gli, and you know it's a completely different design,
Speaker 3: more like a shuttle. But the point being that they
Speaker 3: final assemble these in Mesa, Arizona, and at scale of
Speaker 3: like you're talking tens of thousands per annum.
Speaker 2: So in the first instance. Yeah, free rides.
Speaker 3: Get user feedback, but if Weimo's going to break into
Speaker 3: the mainstream, this is what they see as being their
Speaker 3: mass volume transporter.
Speaker 5: Fascinating and particularly the China Angler as well.
Speaker 2: Ed particularly the China Angle.
Speaker 3: But I think that's the story here that because it's
Speaker 3: final assembly in Mesa and that the skateboard arrives without
Speaker 3: any of the self driving.
Speaker 2: Tech, they get going here, you are there.
Speaker 3: I am a lot of fun read the Bloomberg story
Speaker 3: will have more on the socials later now coming up,
Speaker 3: Andthropics explosive growth has turned into a highly sought after employer.
Speaker 2: We've got more in that next. This is boombog Tech.
Speaker 4: Landing a job at Anthropic is so fiercely competitive that
Speaker 4: applicants are spending get this, six hundred dollars on.
Speaker 5: Average on private interview coaching.
Speaker 4: Candidates say the startups intense culture screen feels that's like
Speaker 4: an interview and more like therapy on the company faces
Speaker 4: some incredible pressure to survive economically while keeping its values.
Speaker 4: People like really cammoring to be part of that story. Bloomo,
Speaker 4: Joe Constance and place to say it is with us
Speaker 4: you do this fascinating deep dive what it's like to
Speaker 4: go through interview rounds and anthropic What is it like?
Speaker 12: Well, I mean, I mean, for for the first things,
Speaker 12: it's competitive. There are so many applicants. Now, there's so
Speaker 12: many people who are you know, just would be thrilled
Speaker 12: to join. Even the most seasoned engineers, the most high
Speaker 12: level executives, recruiters tell me, are willing to take the
Speaker 12: call from the recruiter and the interview process.
Speaker 5: While a lot of it is.
Speaker 12: Pretty standard, the culture interview, from what I hear from
Speaker 12: candidates and recruiters is a little unusual and more of
Speaker 12: you know, a lot of companies, the culture fit interview
Speaker 12: is kind of a vibe check, just to make sure
Speaker 12: you know you're not.
Speaker 5: Odd.
Speaker 12: But then this interview is a little bit more.
Speaker 4: They want you to be old in many ways, I
Speaker 4: mean differently, you'll push back against thoughts at all.
Speaker 12: Different They have a very defined sense of their own
Speaker 12: culture and so they are looking for particular people to
Speaker 12: fit that environment.
Speaker 2: Hey, Joe, a lot of people I know work at them.
Speaker 3: FROPIK are pretty odd and if you're watching the show today,
Speaker 3: you know where to find me. So if you're a candidate,
Speaker 3: because I imagine Actually a lot of the blom Beg
Speaker 3: Tech audience are aspirational. They want to go and work
Speaker 3: at anthropic What does forty six hundred dollars actually get you? Like,
Speaker 3: what are you paying for? And is it working?
Speaker 8: Sure?
Speaker 12: You know, part of this story was interesting to discover
Speaker 12: a little bit more about this, this cottage industry of
Speaker 12: interview prep companies, these career coaches that are really selling
Speaker 12: you know, their services to help people prepare for these
Speaker 12: what feels like and you know, oftentimes very high stakes
Speaker 12: sorts of you know, rounds and rounds of these interviews
Speaker 12: and skills assessments, and so in some cases it's just
Speaker 12: some resources to prep candidates on you know, what types
Speaker 12: of questions they can expect. For other coaches they're offering
Speaker 12: mock interviews.
Speaker 4: And what time can you expect because it is different,
Speaker 4: you are going to be sort of pushed more than
Speaker 4: you might be elsewhere because they're really so based on
Speaker 4: the mission right briefly.
Speaker 12: Right, So, I mean that's that's the thing that I've
Speaker 12: heard from candidates that sometimes they're not quite expecting as
Speaker 12: much intro respection, you know, these types of questions that
Speaker 12: are really pushing folks to reflect on, you know, past experiences,
Speaker 12: decisions they've made, have they felt about those decisions, which
Speaker 12: is a bit unusual for people who are used to
Speaker 12: just talking about, you know, this project they did at
Speaker 12: work and how it went and my great.
Speaker 5: Is failing being how how I'm too orientated?
Speaker 3: Yes, exactly, the most constants with pretty much the most
Speaker 3: read story on Bloomberg today, Thanks very much. Coming up,
Speaker 3: Meta is selling consumer subscriptions to its METAAI chatbot for
Speaker 3: the first time. Got that story next halfway through the program.
Speaker 3: Heck of a lot more to come. This is Bloomberg Tech.
Speaker 4: Welcome back to Bloomberg Tech. Let us take a look
Speaker 4: at today's big number, twenty two billion dollars and counting
Speaker 4: is how much the market cap for Snowflake has grown
Speaker 4: from just one day's market gain. The stock we know
Speaker 4: is surging today. So after the software maker gain a
Speaker 4: stronger than expected annual outlook, we in fact managed to
Speaker 4: speak with a Snowflake CEO, should A Ramaswami on how
Speaker 4: AI is really helping to boost their bottom line.
Speaker 9: Well, we had a landmark quarter caroline strongest sequential dollar
Speaker 9: growth in company's history. Product revenue op to one point
Speaker 9: three three four billion dollars of thirty four percent net
Speaker 9: revenue retention rate, a key metric we watch up to one
Speaker 9: hundred and twenty six percent. But I think the bigger
Speaker 9: news really was this is the quarter where we clearly
Speaker 9: showed that AI is compounding snowflakes advantage in data. We
Speaker 9: did this ole fashion way by creating amazing products like
Speaker 9: Snowflake Intelligence, which is our work agent, which doubled it
Speaker 9: that option with respect to our accounts, and our coding agent,
Speaker 9: which excoed our coco which is used by more than
Speaker 9: seven thousand our counts. And this is what gives us
Speaker 9: confidence in the business. That's why we raise that your
Speaker 9: items from twenty seven to thirty one percent started performance.
Speaker 9: But I think is much more of what does this
Speaker 9: mean for our future that you're very happy with.
Speaker 3: Another big story in the world of tech is Meta.
Speaker 3: This is a two day chart. Yesterday the stock up
Speaker 3: almost four percent. We're basically flat today. Meta is selling
Speaker 3: consumer subscriptions to its Meta AI chatbot for the first time.
Speaker 3: Two tiers basic tier seven dollars n nine cents a
Speaker 3: month that's cool, and then one that's like kind of
Speaker 3: higher tier Meta one plus like I guess those of
Speaker 3: you that are more in it, we write a Bloomberg
Speaker 3: News that this is about offsetting the AI infrastructure costs,
Speaker 3: but other people have slightly different take. I want to
Speaker 3: get to sweader Conjuria Wolf Research managing director joins us. Now,
Speaker 3: because you put research out right when the when the
Speaker 3: news comes, and you're basically saying our thesis, which we'd
Speaker 3: already outlined, is playing out you multiple new revenue streams.
Speaker 3: This is a potential bigger total addressable market for you,
Speaker 3: rather than an action to offset that high capex or
Speaker 3: high infrastructure spending.
Speaker 13: Yeah, that's right, and thanks for having me ed so
Speaker 13: at a high level. One of the deeper dives that
Speaker 13: we did prior to the news coming out was part
Speaker 13: of the reason why Meta is even underperforming Google and
Speaker 13: Amazon is that Meta is spending like a hyperscaler without
Speaker 13: any clear line of sight into demand that Google and
Speaker 13: Amazon have in their hyperscale business. And so where is
Speaker 13: Meta spending all this money to really justify this type
Speaker 13: of spend and cap x and when will we see
Speaker 13: that revenue? So that's the fundamental question, and so in
Speaker 13: that when we dug deeper, it could be subscription or
Speaker 13: it could be a gentic commerce or it could be
Speaker 13: business AI. And now we're starting to see with this
Speaker 13: product release of subscription across consumer businesses and Meta AI
Speaker 13: that this could be the beginning of.
Speaker 5: It about how this is going to scale.
Speaker 4: First quarter, it was about one point three billion dollars
Speaker 4: that was in the non advertising revenue.
Speaker 5: So tiny, how much could that rise?
Speaker 13: Yeah, so in the non advertising revenue right now, a
Speaker 13: lot of it could be business AI that they are
Speaker 13: actually monetizing in WhatsApp through their businesses in WhatsApp. Now
Speaker 13: an add on is going to be subscription. So a
Speaker 13: clearest comp that we have today is Snapchat, and Snapchat
Speaker 13: arguably has surprisingly done a great job in converting its
Speaker 13: da user, daily active users, and monthly active users to
Speaker 13: subscriber base. If Meta can do something similar to that,
Speaker 13: and I'm not saying it's going to be exactly the same,
Speaker 13: but say low to mid single legit percentage of their
Speaker 13: daus actually convert to subscription, well, that in itself implies
Speaker 13: about a one to three percent percentage point uplift to
Speaker 13: their revenue. In other words, approximately anywhere from five to
Speaker 13: fIF teen billion dollars of incremental subscription revenue from consumers
Speaker 13: in the next three to five years.
Speaker 2: Look at it differently.
Speaker 3: In a world where you're paying monthly for Chat, GPT, Clawed, Gemini, etc.
Speaker 3: Is Meta AI worth paying eight dollars or twenty dollars
Speaker 3: a month four.
Speaker 13: That is going to be a key question for them.
Speaker 13: So there is a consumer subscription piece, there is this
Speaker 13: Meta AI type subscription piece which competes directly with Gemini
Speaker 13: to your point, and then there is a business like
Speaker 13: if you are a creator, then you can subscribe as well.
Speaker 13: I see great value in the consumer subscription and the
Speaker 13: creator subscription because it allows them to create more content.
Speaker 13: But in the question that you are asking, where if
Speaker 13: I have a Gemini subscription or a GPT, do I
Speaker 13: need Meta AI, jury is still out on that you
Speaker 13: would need it. If you're running out of capacity and
Speaker 13: you're paying twenty bucks, you don't want to pay additional
Speaker 13: higher tier to a one hundred or two hundred dollars tier,
Speaker 13: and you want just a little bit more of access capacity,
Speaker 13: maybe you bade bucks do Meta Maybe in that scenario
Speaker 13: does make sense. Or if it is highly personalized social
Speaker 13: sort of a use case that they give us which
Speaker 13: cannot be created by Claude because they don't have that information,
Speaker 13: or perhaps the GPD perhaps there is a use case
Speaker 13: in those instances. Yes, but I'm not fully sure. Jury
Speaker 13: is still out on that. On the meta AA subscription scaling.
Speaker 4: Schredo Cajuria, great research, great analysis from Wolf Research.
Speaker 5: We thank you, Mick.
Speaker 4: NASA it selected Blue Origin, far Fly Aerospace and other
Speaker 4: private space firms to help build out its long term
Speaker 4: lunar ambitions. The agency says monthly missions could begin in
Speaker 4: twenty twenty seven, laying the groundwork for astronauts striveging live
Speaker 4: work on the lunar surface. We spoke with the NASA Administrator,
Speaker 4: Jaredisingman about the timeline for a moon.
Speaker 14: Base starting in twenty twenty seven. You should see see
Speaker 14: a near monthly cadence of robotic landers on the Moon,
Speaker 14: several rovers. In fact, we initially we provided in a
Speaker 14: ward for the first two, you know, crude and autonomous
Speaker 14: capable rovers for the lunar surface. So when our astronauts
Speaker 14: arrive on Artemis four and twenty twenty eight, they're going
Speaker 14: to already have some infrastructure of the moon base waiting
Speaker 14: for them.
Speaker 7: They're already going to have a rover waiting for them.
Speaker 4: And then in that timeframe, it's not just intermittent anymore.
Speaker 4: It's not just those monthly visits. But when do you
Speaker 4: think people be working? Humans might even be living in
Speaker 4: some capacity on the moon.
Speaker 14: There, So we are approaching the moon base in phases.
Speaker 14: So Phase one is a lot of littles. We are
Speaker 14: dusting off the playbook that worked very well for NASA
Speaker 14: in the nineteen sixties. We're getting back to an iterative approach.
Speaker 14: So you know, there was the Mercury program before there
Speaker 14: was Geminy, There was Geminy before Apollo, and an awful
Speaker 14: lot of Apollo missions before we went right to the
Speaker 14: moon landing on Apollo eleven. We are doing the same
Speaker 14: thing now. So Phase one we're calling it a science
Speaker 14: of survival. We're not going to lock in what the
Speaker 14: mobility strategy should be, for logistics for astronauts, the power strategy,
Speaker 14: the surface comms, the orbital coms. Why would we try
Speaker 14: and nail and get all of that perfect today when
Speaker 14: we haven't been to the Moon in more than a
Speaker 14: half century. So Phase one will be a lot of
Speaker 14: landings again, that near monthly cadence to learn and inform
Speaker 14: Phase two, where perhaps now you're putting a lot more
Speaker 14: tonnage on the lunar surface. You have a lot more
Speaker 14: direction as to the type of hardware and capabilities you
Speaker 14: want to lock in on, so you don't need to
Speaker 14: have maybe monthly landings when we get into phase two,
Speaker 14: but you have a lot more direction as to what
Speaker 14: should work for our intended objectives, which is to build
Speaker 14: out that habital environment. And then phase two we're going
Speaker 14: to learn now having astronauts go from let's call it
Speaker 14: a period of maybe even days on the lunar surface
Speaker 14: in phase one, to potentially weeks in phase two, to
Speaker 14: where you might get by the time we move into
Speaker 14: Phase three, a similar astronaut rotation like you see on
Speaker 14: the International Space Station, where we could have crews potentially
Speaker 14: being on the lunar surface for months on end.
Speaker 3: You don't have that marked on your calendar, administrator, when
Speaker 3: phase three might have a base that has humans actually
Speaker 3: living and working inside it.
Speaker 7: Oh, we absolutely have time frames.
Speaker 14: I mean we are looking at basically twenty twenty seven
Speaker 14: through twenty twenty nine for phase one. You have twenty
Speaker 14: twenty nine out into the early twenty thirties for Phase two.
Speaker 14: But again, this is all going to be informed on
Speaker 14: what we learn during those first landings in phase one.
Speaker 2: That was NATA administrator Jared Isicman.
Speaker 3: All right, coming up on the show, we're going to
Speaker 3: be joined by Eric Vistria Benchmark for his outlook the
Speaker 3: physical AI space. Yes, we're going to talk about hardware.
Speaker 3: This has Belen bog Tech, French AI startup Mistro AI
Speaker 3: is expanding into advanced manufacturing, striking deals with new customers
Speaker 3: Airbus and BMW as it looks to so called physical
Speaker 3: AI to fuel growth. CEO and co founder of the men,
Speaker 3: she spoke with blue Ink Tech Europe's Tom McKenzie.
Speaker 2: For US, it's a massive market.
Speaker 15: We see in particular the europe is our in core
Speaker 15: market and one of the Europeans the strength of Europe
Speaker 15: is to is in its high end manufacturing. So it's
Speaker 15: the manufacturing world. Is the thirty trillion market. If you
Speaker 15: think of a police that I can bring to it,
Speaker 15: if you only look at ten percent of that, you're
Speaker 15: looking at the three trillion market. And that's happening in
Speaker 15: the next five years.
Speaker 4: Man Over in Asia, Mini Max is annualized revenue more
Speaker 4: than double these past two months to at least three
Speaker 4: hundred million dollars. As the Chinese AI startup prepares to
Speaker 4: roll out its next flagship model, Mean Max co founder
Speaker 4: and President's Yaean joined Blomberg Steven Engel on the sidelines
Speaker 4: of thebs Asian Investment Conference over in Hong Kong.
Speaker 16: Agent and the models are really important for manimalization, but
Speaker 16: definitely the foundation model is a key. You will see
Speaker 16: a better performance. Models with specialization and differentiation will drive
Speaker 16: the token consumption, also drives the enterprise and the consumers
Speaker 16: retention and the consumption. The model performers product commantization will
Speaker 16: become the frive wear. So you will see we did
Speaker 16: the end to end optimization with the whole group. There
Speaker 16: are lots of innovation, technical innovation inside, so you will
Speaker 16: see we can provide probably similar performers models with probably
Speaker 16: lower price even sometimes higher margins.
Speaker 17: Yeah, so how do you change your revenue mix where
Speaker 17: most of your revenue is coming from your consumer facing
Speaker 17: products like the chatboxing and also high level which just
Speaker 17: last year's that's like the text to video generation. But
Speaker 17: next year, as you go into your model three, right
Speaker 17: from two point seven to three, how is your revenue
Speaker 17: mixed going to change?
Speaker 2: Yeah?
Speaker 16: So the number you mentioned is last year's number, but
Speaker 16: right now it's almost like fifty enterprise and fifty consumers,
Speaker 16: so the enterprise increase a lot. And also, yes, the
Speaker 16: model is a key, so we think the model is
Speaker 16: our product, no matter it's a B to B R
Speaker 16: digital C. It's all the Chinnel's for the commercialization. So
Speaker 16: we've spent most of our resources and the spendings of
Speaker 16: the model layer. Yes, we are going to release I'm
Speaker 16: three very very soon in a few days, which probably
Speaker 16: I think, which is the first open source native multi model.
Speaker 3: That was Min and Max co founder and president Yea
Speaker 3: Ian along with our own Stephen Engel. We're gonna stick
Speaker 3: with AI and we're going to discuss the outlook for
Speaker 3: physical AI with Eric Visher, a partner at Benchmark Today's
Speaker 3: VC Spotlight.
Speaker 2: Been really looking forward to this one.
Speaker 14: Eric.
Speaker 3: Ten years ago, you're very welcome to be here. Ten
Speaker 3: years ago you led a series A in a little
Speaker 3: company called Cerebras. Fast forward ten years what an IPO,
Speaker 3: but it's indicative of where we're at right now in
Speaker 3: this demand for fast inference.
Speaker 2: I just want to start with that case study.
Speaker 3: You know, the timing of this IPO and where it
Speaker 3: fits in what's actually happening in physical AI right now.
Speaker 18: Well, I think that it's very very clear that the
Speaker 18: demand for inference and AI is operal charts, and I
Speaker 18: don't think that's going to stop anytime soon. I think
Speaker 18: it was Alex Scattered at at Whale Rock who kind
Speaker 18: of recently said, if you think of the population of
Speaker 18: the world, there's like one percent of the world.
Speaker 2: Is maybe AI power users today.
Speaker 18: So if one percent of the world is AI power
Speaker 18: users today and we're completely compute constrained, for as far
Speaker 18: as I can see, what happens when three percent of
Speaker 18: the world, or four percent of the world, or five
Speaker 18: percent of the world becomes AI super users or power users.
Speaker 18: And so I think that we are going to be
Speaker 18: in this compute constrained world for quite some time. And
Speaker 18: I think that that's going to lead to a lot
Speaker 18: of success in all of the hardware layers. And it's
Speaker 18: also going to lead to the bottleneck moving around. You know,
Speaker 18: some days, some months it's going to be memory, some
Speaker 18: months it's going to be data center and power. Some
Speaker 18: once it's going to be chips. And I think that
Speaker 18: bottleneck is going to keep.
Speaker 4: Moving around some days it's all of them combined, Derek,
Speaker 4: So totally at this exact moment, where are the startups
Speaker 4: you're most interested in, or the ones you already sit
Speaker 4: on boards of starting.
Speaker 5: To innovate at the edges?
Speaker 4: When are we going to really see like movement of
Speaker 4: photonics or a different type of compute being used.
Speaker 11: Well, I think, I think you know.
Speaker 18: One of the benefits of being an early stage ventry
Speaker 18: capitalists is we have a very long time horizon, so
Speaker 18: we're not trying to figure out what's going to happen
Speaker 18: in eighteen months or twelve months or twenty four months.
Speaker 18: We're really looking and trying to have some idea of
Speaker 18: what might happen in five years or seven years or
Speaker 18: ten years. And as we look out, we are really excited.
Speaker 18: For example, we invested in star Cloud, which is a
Speaker 18: space data center. We invested in Sunday Robotics, which is
Speaker 18: a domestic robot And when you kind of work at
Speaker 18: companies like that, they're very much on the frontier. It's
Speaker 18: going to take a bunch of time. There are very
Speaker 18: capital intensive projects, but they're amazing teams that are doing
Speaker 18: really cool development, pushing the edge, and it's going to
Speaker 18: require a lot of flexibility on their parts as the
Speaker 18: market evolves. There's obviously a lot of unknowns, but there's
Speaker 18: also tremendous possibilities.
Speaker 3: I just want to go back to Cerebris for a minute,
Speaker 3: and to some this is now ancient history is academic.
Speaker 3: But two days before the IPO I broke a story
Speaker 3: that arm and soft Bank had basically gone to Andrew
Speaker 3: Feldman and said we'd buy you for a large number.
Speaker 3: And Andrew very quickly shut it down, and the rest
Speaker 3: is history, of course, because they went public. But it's
Speaker 3: somebody that joined the board in twenty sixteen and has
Speaker 3: had three if the five major investments go to IPO.
Speaker 3: What would you have made of that outcome instead of
Speaker 3: going public.
Speaker 18: Well, obviously you can't comment on that specific reporting, but
Speaker 18: we're a public company now.
Speaker 11: I think that has opened up.
Speaker 18: A lot of possibilities in terms of what we can do.
Speaker 18: We've raised a ton of capital to finance the business
Speaker 18: and allow us to take advantage of the tremendous demand.
Speaker 18: And I think we're really at the beginning. You know,
Speaker 18: if you feel like there is an end in sight,
Speaker 18: you might take a different, different tact. But as far
Speaker 18: as we can see the demand is tremendous.
Speaker 4: You say, you're just backed a company and it's about
Speaker 4: orbital space centers, and that immediately makes us all think
Speaker 4: of SpaceX and how they're going to be sucking a
Speaker 4: lot of the oxygen out of the room when it
Speaker 4: comes to a public offering. How are your companies currently
Speaker 4: feeling the need for cash? How are you thinking about
Speaker 4: permanently fundraising or looking for exits right now?
Speaker 11: Well, you know, it's really interesting.
Speaker 18: Right now, the venture landscape is very much have and
Speaker 18: have not, which is, if you are oriented around AI
Speaker 18: and you're growing really quickly or have something that's very
Speaker 18: much on the frontier, there's almost there's almost like limitless
Speaker 18: cash available and funding available. And if you're not, even
Speaker 18: if it's a good business that would have people would
Speaker 18: have fallen on all over themselves. For you know, five
Speaker 18: or six years ago, there's almost no funding available. So
Speaker 18: it's a very it's a very bimodal setup right now,
Speaker 18: which is which is challenging certainly, But each of these
Speaker 18: financing eras kind of they come and go, and you know,
Speaker 18: one of the really important things for any of these
Speaker 18: companies or entrepreneurs is just to keep on, keep on
Speaker 18: grinding and finding the way that there's building a company
Speaker 18: that is impactful as a roller coaster. And it takes
Speaker 18: a long time, and even if you take the Cerever's journey,
Speaker 18: there's been lots and lots of ups and downs over
Speaker 18: the time. Obviously, taking an AI sending conductor company public
Speaker 18: in maybe twenty twenty six is about as good timing
Speaker 18: as you can get. But you know, part of that
Speaker 18: is the timing. Part of that's just luck. And then
Speaker 18: obviously it's all built on top of a decade of
Speaker 18: the team grinding.
Speaker 4: At okasor another interesting one that we're looking at in
Speaker 4: your portfolio. We have to talk about that another time. Eric,
Speaker 4: it's great to have you on. Eric Vishrha of Benchmark.
Speaker 4: Now coming up TikTok, but it's moving away from music,
Speaker 4: scaling back tis with major music labels.
Speaker 5: We'll dig into that next. This is Bloomberg Tech.
Speaker 3: AI could provoke a fifteen percent displacement of knowledge workers.
Speaker 3: That's according to Muddy Waters Capital CEO Carson Block, who
Speaker 3: joined Bloomberg's has Linda Amen in an exclusive interview to
Speaker 3: discuss AI demand listen to this.
Speaker 19: Our house view is that we're going to see fifteen
Speaker 19: percent displacement of knowledge workers. You know, we think it
Speaker 19: could be as soon as three years, is it four?
Speaker 2: Is it five?
Speaker 19: At some point and it's in the single digit number
Speaker 19: of years. This will this will be a factor or
Speaker 19: this this will occur in our view, and yes, there
Speaker 19: will be jobs that are created by AI, but we're
Speaker 19: talking about net losses because the technology is increasing in
Speaker 19: capability faster than we humans are able to adapt to it.
Speaker 5: Let's talk about the displacement of music labels.
Speaker 4: Maybe over at TikTok, because music has been called to
Speaker 4: TikTok's identity since its days. Is musically helping artists like
Speaker 4: Little nas X or Olivia Rodrigu just global stardom and
Speaker 4: waits Now TikTok there is skinning back ties with major
Speaker 4: music labels and focusing more directly on those artists.
Speaker 5: It's according to sources, that's.
Speaker 4: All discovered by Blue Megs Alex Levine along with Ashley Carmen.
Speaker 5: What is happening with a company that identify with music?
Speaker 4: I mean it's it's in the icon, it's in the branding.
Speaker 4: How are they moving away from labels?
Speaker 11: So exactly?
Speaker 20: Music has really been part of its DNA since the
Speaker 20: very beginning. It is the thing that made helped make
Speaker 20: TikTok this global cultural phenomenon and got more than half
Speaker 20: of America using it. Though TikTok continues importantly to work
Speaker 20: with major music labels, including some of the world's biggest,
Speaker 20: it is deprioritizing those relationships in part by building out projects,
Speaker 20: prioritizing internal efforts to actually have products and services that
Speaker 20: compete directly with the labels and that allow the company
Speaker 20: to have sort of more direct relations with the artists
Speaker 20: rather than through the representatives.
Speaker 3: Alex, TikTok changed music. Now labels worry it's leaving them behind.
Speaker 3: But present day, how does music work on TikTok. So
Speaker 3: it's Friday night, I'm kicking back on the couch. I
Speaker 3: go to YouTube on the TV and play concerts, music videos.
Speaker 3: I don't think present day like, you know what yep,
Speaker 3: music music video like, just explain what we're talking about mechanically.
Speaker 20: So mechanically, when you open your app, you've got your
Speaker 20: four you feed. Every video that you see is going
Speaker 20: to have some sort of audio behind it, whether that's
Speaker 20: people speaking or whether that's music, and oftentimes those sounds
Speaker 20: are our songs that have gone viral, and sometimes it's
Speaker 20: new songs from emerging artists. Sometimes it's made you know,
Speaker 20: it's it's global hits from artists like Paul McCartney, like
Speaker 20: Bruno Mars, and sometimes it's simply just you know, sort
Speaker 20: of repetitive meme type noises that you can find through
Speaker 20: through various other means on the app. But I think
Speaker 20: that there's always sort of been this question, especially more recently,
Speaker 20: about whether blowing up on TikTok or going viral can
Speaker 20: actually mint a legitimate star and and have have them
Speaker 20: develop really an enduring career from that.
Speaker 3: Bloomberg's Alex Savine with what's going on in music on TikTok,
Speaker 3: Thank you very much.
Speaker 5: Character that does it for this edition of Bloomberg Tech.
Speaker 5: What an edition has been?
Speaker 3: Yeah, a lot of market moves, a lot of great interviews,
Speaker 3: a lot of top stories, recap up on the podcast.
Speaker 3: You know exactly where to find it all the Bloomberg
Speaker 3: platforms and online, Apple, Spotify.
Speaker 2: In iHeart, this is Bloomberg Tech