WEBVTT - OpenAI’s For-Profit Path Cleared 0:00:02.520 --> 0:00:13.400 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.440 --> 0:00:17.239 from coast to coast with Caroline Hyde in New York 0:00:17.560 --> 0:00:19.800 and Eva low In sent frances. 0:00:19.440 --> 0:00:24.760 Go, this is Bloomberg Tech coming up. 0:00:24.800 --> 0:00:28.600 Microsoft and open Ai finalize a new agreement, with Microsoft 0:00:28.840 --> 0:00:31.639 now getting a twenty seven percent ownership stake in the 0:00:31.680 --> 0:00:35.400 AI startup worth about one hundred and thirty five billion plus. 0:00:35.440 --> 0:00:38.279 Today is in Video's DC super Bowl. We'll discuss what 0:00:38.320 --> 0:00:41.920 investors are looking for in CEO Jensen One's keynote address 0:00:42.120 --> 0:00:45.600 at the GtC conference, and we sit down with Tesla 0:00:45.640 --> 0:00:49.239 board chair Robin Denholm to discuss the push to convince 0:00:49.280 --> 0:00:54.200 shareholders to approve Elon Musk's one trillion dollar pay package. 0:00:54.240 --> 0:00:56.240 At the index level, there is not a lot going 0:00:56.280 --> 0:00:57.959 on in the world of technology, but there are two 0:00:58.040 --> 0:01:01.800 big stories. In video is off itsself highs upper percentage 0:01:01.800 --> 0:01:04.600 point and trading at a record high. We await Jensen 0:01:04.640 --> 0:01:08.160 Jang later today and a big GtC keynote. Then there 0:01:08.200 --> 0:01:11.120 is the big breaking news story of the morning. Microsoft 0:01:11.360 --> 0:01:15.039 will get a twenty seven percent stake in open Ai 0:01:15.240 --> 0:01:18.480 at a value of one hundred and thirty five billion dollars. 0:01:18.560 --> 0:01:20.119 There or thereabouts. 0:01:20.240 --> 0:01:24.440 It is some certainty for investors for both companies who 0:01:24.520 --> 0:01:28.800 have been waiting to understand the evolution of this relationship, 0:01:29.000 --> 0:01:31.520 and we got some details well into the future. Let's 0:01:31.520 --> 0:01:34.160 get to our senior tech editor Mike Shepherd, who's. 0:01:33.880 --> 0:01:34.440 Here in DC. 0:01:35.400 --> 0:01:38.320 There's the ownership in the financials, let's go through those, please. 0:01:38.440 --> 0:01:41.840 But also we now know that open ai will license 0:01:41.880 --> 0:01:44.440 its technology to Microsoft for a very long time. 0:01:44.400 --> 0:01:46.200 Yes, until twenty thirty two ed. 0:01:46.240 --> 0:01:48.520 And this is really, in a way a bigger move 0:01:48.640 --> 0:01:51.280 for open ai because it removes some of the uncertainty 0:01:51.320 --> 0:01:56.160 that has been surrounding its evolution into a for profit venture. 0:01:56.760 --> 0:01:58.040 We know the numbers there. 0:01:58.040 --> 0:02:00.760 We are Microsoft getting a twenty seven percent stake worth 0:02:00.800 --> 0:02:02.360 about one hundred and thirty five billion. 0:02:02.800 --> 0:02:03.840 But another key. 0:02:03.680 --> 0:02:06.400 Element that we also heard was that it will have 0:02:06.800 --> 0:02:10.360 a hold on open ai technology until twenty thirty two, 0:02:10.720 --> 0:02:15.520 and that also includes when open ai achieves AGI artificial 0:02:16.639 --> 0:02:20.560 This is the state of generalized intelligence when AI can 0:02:20.680 --> 0:02:24.240 think like a human in essence, So that's a key development. 0:02:24.360 --> 0:02:27.240 And there is also some money going into the nonprofit 0:02:27.360 --> 0:02:31.360 open Ai Foundation. That also resolves another loose end. And 0:02:31.400 --> 0:02:34.160 for investors, this removes one of the hurdles that have 0:02:34.240 --> 0:02:37.960 been standing in the way of this all happening, and 0:02:38.040 --> 0:02:40.400 it have been standing in the way. Microsoft was one 0:02:40.400 --> 0:02:43.800 of the last holdouts among the backers of open ai 0:02:44.120 --> 0:02:46.200 for this evolution to a for profit. 0:02:46.360 --> 0:02:48.400 Okay, so the pathway is open for open ai to 0:02:48.440 --> 0:02:50.920 become a for profit business and get the resources it needs. 0:02:50.960 --> 0:02:52.920 It was a hell of a day to pick to 0:02:52.919 --> 0:02:55.399 put news out between nine and nine thirty four East 0:02:55.400 --> 0:02:58.280 in this morning, four red headlines on the Bloomberg terminal, 0:02:58.280 --> 0:03:00.840 which is a lot for our technology news we all 0:03:00.880 --> 0:03:03.440 here for in video GtC and as we've written on 0:03:03.440 --> 0:03:06.600 the Bloomberg terminal, this is the AI super Bowl. The 0:03:06.680 --> 0:03:10.640 expectation is very high that Gensen Wang will say something 0:03:10.680 --> 0:03:12.919 that moves the needle, and he'll say something political. 0:03:13.160 --> 0:03:15.640 Well, they're sure is that we've been looking at this 0:03:15.680 --> 0:03:16.560 from two lenses. 0:03:16.600 --> 0:03:18.400 One, what are they going to be introducing? 0:03:18.480 --> 0:03:23.240 The way of products features partnerships to accelerate this push 0:03:23.320 --> 0:03:26.000 that Jensen Wong and Nvidia have been making to try 0:03:26.040 --> 0:03:30.040 to spread and disseminate artificial intelligence through the economy and 0:03:30.080 --> 0:03:33.400 a lot of different sectors ranging from healthcare to transportation. 0:03:33.960 --> 0:03:37.000 We'll hear him talk about things like robotics and other 0:03:37.120 --> 0:03:40.080 areas where they want to see what he calls the 0:03:40.200 --> 0:03:43.560 AI factory take hold. This is where AI is used 0:03:43.600 --> 0:03:46.120 to develop ideas. But one of the things that has 0:03:46.160 --> 0:03:49.200 been holding back the Nvidia push, of course, has been 0:03:49.320 --> 0:03:52.680 US export controls that has kept Nvidia out of the 0:03:52.680 --> 0:03:56.360 world's largest market for semiconductors, and that is China, and 0:03:56.400 --> 0:03:59.240 he would surely like to see that change. And not coincidentally, 0:03:59.280 --> 0:04:02.200 President Donald Trump is in Asia as we speak. He 0:04:02.280 --> 0:04:04.840 is about to meet with Chinese President Shi Jimping on 0:04:04.920 --> 0:04:08.160 Thursday and perhaps hashed through some of those issues. For now, 0:04:08.280 --> 0:04:12.200 this preliminary core between the US and China does not include. 0:04:11.960 --> 0:04:14.600 Any change to those export controls. 0:04:14.720 --> 0:04:17.400 But perhaps Jensen today will be sending a signal to 0:04:17.520 --> 0:04:22.159 his new friend, Donald Trump, and Jensen will be traveling 0:04:22.279 --> 0:04:25.960 to South Korea and he will see Trump there as 0:04:26.040 --> 0:04:27.720 soon as the Super Bowl. 0:04:27.680 --> 0:04:28.800 Wraps up later today. 0:04:28.800 --> 0:04:32.000 The President told us he expects to see Jensen Wong tomorrow, 0:04:32.120 --> 0:04:33.520 so he's going to have to hot foot it away 0:04:33.520 --> 0:04:36.680 from Washington, DC this afternoon. Bloobog's Mike Shephard, thank you 0:04:36.800 --> 0:04:40.680 very much. Now coming up, Robin Denholt, Chair and Tesla's board, 0:04:41.080 --> 0:04:44.479 joins us to discuss the push to convince shareholders to 0:04:44.640 --> 0:04:48.000 approve Elon Musk's one trillion dollar pay package. 0:04:48.040 --> 0:04:50.839 That conversation is next. This is Bloomberg Tech. 0:05:00.000 --> 0:05:03.280 He's to welcome our TV and radio audiences worldwide as 0:05:03.320 --> 0:05:05.800 we're joined here in New York by Robin dan Holm, 0:05:06.040 --> 0:05:09.400 chair of Tesla's Board of directors in New York, meeting 0:05:09.480 --> 0:05:10.800 with shareholders. 0:05:10.240 --> 0:05:12.160 Key institutional shareholders of Tesla. 0:05:12.600 --> 0:05:15.279 Chris, there's a pay package that many have been analyzing 0:05:15.839 --> 0:05:18.640 that will keep from your perspective, Elon Musk in the 0:05:18.720 --> 0:05:21.960 driving seat and CEO of Tesla. Who are you meeting 0:05:21.960 --> 0:05:24.000 with and what thus far has been the response been 0:05:24.279 --> 0:05:26.279 to this pay package that could see Elon paid as 0:05:26.360 --> 0:05:28.240 much as a trillion dollars. 0:05:28.560 --> 0:05:31.680 Well, thank you for having me today. Yes, as part 0:05:31.720 --> 0:05:35.559 of our annual shareholder meeting, I meet with the top 0:05:35.640 --> 0:05:41.760 investors in Tesla on the institutional side, and obviously also 0:05:41.839 --> 0:05:46.800 talk to retail investors through forums like this this morning 0:05:46.880 --> 0:05:51.400 to encourage everybody to vote, but also to answer any 0:05:51.440 --> 0:05:54.840 questions that they have. From a board perspective, we really 0:05:54.920 --> 0:06:00.360 like to engage with our shareholders. Understand their questions that cancers, 0:06:00.480 --> 0:06:04.040 their optimism for the future, and so it's a really 0:06:04.040 --> 0:06:07.320 important part of the process we go through on a 0:06:07.400 --> 0:06:10.720 quarterly basis, but also with the proxy on an annual 0:06:10.760 --> 0:06:11.719 basis as well. 0:06:11.960 --> 0:06:16.200 So the initial feedback is it one of optimism around 0:06:16.240 --> 0:06:19.240 the pay package. We've heard from Glass Lewis from ISS 0:06:19.279 --> 0:06:22.320 which have said they're not in agreement with the way 0:06:22.320 --> 0:06:24.000 in which the pay package is thus formed. 0:06:24.240 --> 0:06:25.760 The key concern seems to be. 0:06:26.040 --> 0:06:28.360 The sheer amount of money going to Elon Musk if 0:06:28.400 --> 0:06:32.320 indeed he achieves all of those key milestones. But for you, 0:06:32.600 --> 0:06:36.479 it's about and for Elon influence, it seems like, so 0:06:36.600 --> 0:06:39.560 how are you managing to discuss that with the investors 0:06:39.760 --> 0:06:40.839 institutional a retail. 0:06:41.480 --> 0:06:44.560 Yeah, So, firstly, it is a performance package, so he 0:06:44.640 --> 0:06:49.040 gets nothing if he doesn't perform against the pretty audacious 0:06:49.120 --> 0:06:53.320 milestones that are part of the performance criteria that's been 0:06:53.360 --> 0:06:59.360 outlined by the board in the performance package. So I 0:06:59.400 --> 0:07:03.240 think rather than compensation, it's actually about the performance and 0:07:03.279 --> 0:07:05.960 the goals that we have for the company as we 0:07:06.000 --> 0:07:09.680 move forward. And so for me, it really is about 0:07:10.080 --> 0:07:14.200 making sure that investors understand that that they actually get 0:07:14.240 --> 0:07:17.600 paid if he hits the master and before he will. 0:07:18.200 --> 0:07:22.800 But to your point, it is about voting influence. Elon's 0:07:22.800 --> 0:07:26.600 been very public, including on last week's earnings call, about 0:07:26.640 --> 0:07:30.520 the fact that it's around the voting influence that he 0:07:30.560 --> 0:07:35.440 could have in future shareholder meetings as opposed to the 0:07:35.480 --> 0:07:40.360 economic interests of the shares that he would get as 0:07:40.440 --> 0:07:42.200 part of the performance plan. 0:07:43.840 --> 0:07:45.840 Robin, good morning from Washington, DC. 0:07:46.680 --> 0:07:49.240 You've acknowledged that there is a very real risk that 0:07:49.280 --> 0:07:53.600 Elon leaves if the vote is a no. This question 0:07:53.640 --> 0:07:58.040 we get most often from shareholders to you is what's 0:07:58.080 --> 0:08:01.480 the plan be? Is there a plan B as a 0:08:01.520 --> 0:08:05.400 different person stepping up, or have you discussed with Elon 0:08:05.920 --> 0:08:09.120 the idea that it will result in a no vote 0:08:09.200 --> 0:08:11.560 and that you can use some kind of bridging mechanism 0:08:11.760 --> 0:08:13.880 another interim pay award for example. 0:08:14.880 --> 0:08:20.040 Well, he's been quite public in terms of the implications 0:08:20.080 --> 0:08:23.240 of a no vote being on his leadership as well 0:08:23.280 --> 0:08:28.560 as on the obviously on the performance plan itself, and 0:08:28.600 --> 0:08:32.760 so from our perspective as a board, we we obviously 0:08:32.840 --> 0:08:37.280 take our fiduciary responsibilities really seriously to all shareholders and 0:08:37.440 --> 0:08:41.880 having you know, a succession plan, you know those types 0:08:41.920 --> 0:08:45.960 of things things we've discussed on an ongoing basis, particularly 0:08:46.480 --> 0:08:51.040 you know, if something unto world were to happen. So, 0:08:51.080 --> 0:08:54.760 from our perspective, succession planning is an important part, and 0:08:55.040 --> 0:08:57.840 so much so that we've actually baked in an orderly 0:08:58.200 --> 0:09:00.720 succession plan and a plan for a plant, if you like, 0:09:00.800 --> 0:09:03.520 as part of this performance plan. So the last two 0:09:03.640 --> 0:09:08.360 tranches of the of the performance plan are unlocked by 0:09:08.400 --> 0:09:14.640 having a robust performance plan that sorry succession plan that 0:09:14.679 --> 0:09:15.880 Elon would be part of. 0:09:17.960 --> 0:09:20.840 If Elon Musk walks away from Tesla on November sixth 0:09:20.920 --> 0:09:23.760 or seventh because of a no vote, is there a 0:09:23.800 --> 0:09:27.480 contingency where there is an individual already within Tesla or 0:09:27.520 --> 0:09:31.520 an individual outside of Tesla that is lined up as 0:09:31.600 --> 0:09:32.559 a near term option. 0:09:33.320 --> 0:09:36.480 Yeah, So from our perspective, the most important thing at 0:09:36.520 --> 0:09:39.520 this point in time is making sure that we're explaining 0:09:40.440 --> 0:09:44.120 all of the items on the shareholder agenda for the 0:09:44.240 --> 0:09:50.080 annual sharing holder Meeting, making sure that institutional investors retail 0:09:50.120 --> 0:09:53.439 investors have their questions answered. That's our most important thing 0:09:53.520 --> 0:09:54.880 right at this point, and we. 0:09:54.840 --> 0:09:58.120 Are only robin That is their question, Who's the backup plan? 0:09:58.320 --> 0:10:00.000 Is the question that they're asking you. 0:10:00.280 --> 0:10:03.880 Well, there is no other person that is Elon. We 0:10:03.960 --> 0:10:07.040 think that he is the right leader for the company 0:10:07.080 --> 0:10:10.840 over this next decade and delivering the plan and the 0:10:10.840 --> 0:10:13.760 opportunities ahead of us. So it's about how do we 0:10:14.160 --> 0:10:17.080 create the most value for the company and for our 0:10:17.120 --> 0:10:20.280 shareholders over this next period of time. And he is 0:10:20.320 --> 0:10:22.640 the right leader for us over this next decade. 0:10:22.800 --> 0:10:25.480 Can you give me a sense of probability if the 0:10:25.559 --> 0:10:28.840 vote is no, what probability Elon walks? 0:10:29.360 --> 0:10:30.319 So right? 0:10:30.360 --> 0:10:33.520 At this point in time, it's too early to actually 0:10:33.520 --> 0:10:37.880 make a call on the outcome. Most investors wait to 0:10:37.920 --> 0:10:41.160 the last minute to vote, so we're still early in 0:10:41.160 --> 0:10:43.480 that cycle, which is one of the reasons why I'm 0:10:43.520 --> 0:10:47.719 in New York to meet with our institutional investors. And 0:10:48.200 --> 0:10:51.280 we will get a better sense as the votes come in. 0:10:52.080 --> 0:10:56.280 And some institutions are more public than others in terms 0:10:56.280 --> 0:10:59.920 of how they're going to vote. So yesterday there was 0:11:00.400 --> 0:11:04.320 public announcement by the pension fund in Florida, and so 0:11:04.480 --> 0:11:10.120 other investors will start to make their votes public as well. 0:11:11.040 --> 0:11:13.479 But if it's no, the probability that Elon. 0:11:13.280 --> 0:11:16.200 Goes well, time will tell. 0:11:16.280 --> 0:11:21.000 But he's been very very public in terms of you know, 0:11:21.080 --> 0:11:25.199 it would be more of a say on his leadership 0:11:25.240 --> 0:11:27.720 over this period of time, not just about the performance 0:11:27.760 --> 0:11:30.920 plan itself in terms of a no vote. 0:11:31.080 --> 0:11:34.439 Yeah, Robin, you've been generous with your time. You know, 0:11:34.480 --> 0:11:37.400 we've already spoken with you in September at length about 0:11:37.440 --> 0:11:40.439 the goals that you've set for Elon Musk. But one 0:11:40.480 --> 0:11:42.600 of the things that came out of that from again 0:11:42.679 --> 0:11:45.560 the shareholder base is why are the energy products not 0:11:45.720 --> 0:11:50.080 as strictly mandated to Elon when you consider the earnings 0:11:50.080 --> 0:11:52.679 that just posted. That was a growth driver, right, It's 0:11:52.679 --> 0:11:57.040 such a key part of Elon Musk's master Plan Part 0:11:57.120 --> 0:12:00.960 four and this abundance that he is going after. So 0:12:00.960 --> 0:12:05.600 why didn't you include energy products as a stated goal? 0:12:05.960 --> 0:12:10.120 Yeah, So there are many different goals that we looked at. 0:12:10.520 --> 0:12:14.960 Energy is an important part of the Tesla product line 0:12:15.000 --> 0:12:18.040 up today and in the future, and you can see 0:12:18.360 --> 0:12:21.280 the impact that energy is having not only on the results, 0:12:21.320 --> 0:12:27.080 but also on the transition to sustainable energy longer term. 0:12:27.679 --> 0:12:31.280 So it is embedded in the plan. The ebitter goals 0:12:31.320 --> 0:12:34.400 that we have as a company. You can't get there 0:12:34.400 --> 0:12:39.959 without a robust energy outcome. And so again, if you 0:12:40.000 --> 0:12:43.800 look at the results of last week, energy contributed very significantly, 0:12:43.840 --> 0:12:47.480 and to get to four hundred billion dollars of adjusted 0:12:47.559 --> 0:12:52.800 ebitter as a monumental task for anybody. No one out there, 0:12:52.840 --> 0:12:56.480 at least to my knowledge, is at that sort of level. 0:12:56.800 --> 0:13:01.360 And so even the first ebitter goals at billion dollars 0:13:01.480 --> 0:13:06.040 is nearly three times our highest bitter goals that we've had, 0:13:06.360 --> 0:13:10.360 So from our perspective, it is absolutely. 0:13:09.760 --> 0:13:11.079 Embedded in the goals. 0:13:12.040 --> 0:13:14.600 To your point, it's not a specific line item in 0:13:14.679 --> 0:13:18.000 terms of the revenue or the units or the killer 0:13:18.000 --> 0:13:21.120 watts of energy or megawatts of energy that are out there, 0:13:21.160 --> 0:13:24.679 but it is implicit in the plans, and the master 0:13:24.760 --> 0:13:28.040 Plan for you know, talks about that as well in 0:13:28.120 --> 0:13:30.559 terms of getting to sustainable abundance. 0:13:31.960 --> 0:13:34.839 Robin has the special committee and the advisors that you 0:13:34.920 --> 0:13:39.120 took on discuss the use of interim awards in the 0:13:39.160 --> 0:13:42.000 event of the no votes and how you might replicate 0:13:42.040 --> 0:13:43.280 what you did already. 0:13:43.840 --> 0:13:48.040 Well, there's an important other measure on the board as well, 0:13:48.240 --> 0:13:53.640 proposal in terms of increasing the share pool that we have. 0:13:53.840 --> 0:13:56.719 Firstly for our employees. As you know, we're in a 0:13:56.800 --> 0:14:01.839 talent wall at the moment, particularly around aar talent and 0:14:02.120 --> 0:14:07.800 adding to the Employee Reserve as part a of that 0:14:09.040 --> 0:14:12.640 to actually increase the amount of equity that we have 0:14:12.760 --> 0:14:17.439 for our employee program. But secondarily, we've also asked shareholders 0:14:17.480 --> 0:14:21.800 to add to the pool in the event that we 0:14:21.880 --> 0:14:28.960 need to award an amount to elin to compensate for 0:14:29.000 --> 0:14:32.160 the twenty eighteen plan, because as you know, we put 0:14:32.160 --> 0:14:35.600 an intram award for roughly one third of what he 0:14:35.720 --> 0:14:40.720 earned under the twenty eighteen plan. Given the appeal that 0:14:40.840 --> 0:14:45.120 is ongoing in Delaware at the moment, so we have 0:14:45.240 --> 0:14:48.160 not ruled that out. The special Committee was charged with 0:14:48.320 --> 0:14:52.680 looking at all matters compensation wise. As you're aware, in August, 0:14:52.760 --> 0:14:57.760 we did actually award an interim award which does have 0:14:57.800 --> 0:15:01.120 a two year vesting period and is four aforded if 0:15:01.160 --> 0:15:05.240 we win the appeal in Delaware for the twenty eighteen 0:15:06.200 --> 0:15:07.440 compensation program. 0:15:08.360 --> 0:15:11.920 It does seem then to be about money, and I'm 0:15:11.920 --> 0:15:14.920 interested as to how you continue to You've made very 0:15:14.920 --> 0:15:17.400 clear it's about influence as well. Some of the feedback 0:15:17.400 --> 0:15:19.720 has been just a gargantuan amount that could go to 0:15:19.720 --> 0:15:22.040 Elon in terms of monetary value, but then others. 0:15:21.760 --> 0:15:23.960 Are worried about the dilution to other shareholders. 0:15:24.840 --> 0:15:27.840 How was it in just no way possible to give 0:15:27.920 --> 0:15:30.960 him more voting rights without the one trillion dollar mega 0:15:30.960 --> 0:15:31.840 money bonus. 0:15:31.880 --> 0:15:34.240 It feels like yeah, I mean, we looked at many 0:15:34.280 --> 0:15:38.640 different instruments to be able to award equity that had 0:15:38.720 --> 0:15:42.400 voting rights versus the economic value, and it's just not 0:15:42.520 --> 0:15:46.320 possible once a public company has gone public to introduce 0:15:47.280 --> 0:15:49.720 a special class of voting shares. 0:15:50.000 --> 0:15:51.200 Other companies have that. 0:15:51.720 --> 0:15:54.360 If you look at some of the tech companies, they 0:15:54.400 --> 0:15:57.640 have two classes and founder shares if you like, or 0:15:57.680 --> 0:16:01.920 special voting rights exist. But Kesler, that wasn't implemented at 0:16:01.960 --> 0:16:05.560 the time that we actually went public, and therefore we 0:16:05.560 --> 0:16:08.800 weren't able to use that type of instrument. But what 0:16:08.880 --> 0:16:12.720 we were able to do was to bifurcate the voting 0:16:12.840 --> 0:16:17.880 rights versus the economic rights. And so under the plan. 0:16:18.680 --> 0:16:19.560 The first. 0:16:21.080 --> 0:16:24.280 All the awards have voting rights that are earned first, 0:16:25.120 --> 0:16:28.080 and then the economic rights happen, you know, seven and 0:16:28.160 --> 0:16:30.640 a half years later in the first instance. 0:16:30.240 --> 0:16:31.280 Or ten years later. 0:16:31.720 --> 0:16:35.760 So it really isn't about the economic or monetary value. 0:16:35.800 --> 0:16:37.160 It's more about the voting rights. 0:16:37.200 --> 0:16:39.920 And if there was a different mechanism that was available 0:16:39.960 --> 0:16:43.000 to us, we may have used that, but we had 0:16:43.080 --> 0:16:47.880 many experts look at it over an extensive period of time, 0:16:48.080 --> 0:16:51.720 and we were not able to come up with something 0:16:51.800 --> 0:16:53.320 that would enable us to do that. 0:16:53.920 --> 0:16:56.360 We asked you who had Robin Dunholm, Chaphas and Tasla 0:16:56.400 --> 0:16:59.160 board of directors of course, and Robin what's so interesting 0:16:59.240 --> 0:17:02.000 is made very clear why he wants influence, and in 0:17:02.040 --> 0:17:04.159 the Earning school, who is saying he's worried about this 0:17:04.400 --> 0:17:07.080 army of robots that he is creating and they're not 0:17:07.160 --> 0:17:11.400 having the influence if something went untoward. His concerns about 0:17:11.440 --> 0:17:15.480 AI have been well documented, But why is he the 0:17:15.560 --> 0:17:18.679 right person to have influence, to have more than twenty 0:17:18.800 --> 0:17:19.840 twenty five percent. 0:17:19.680 --> 0:17:20.920 Vote in control? 0:17:21.040 --> 0:17:23.080 I think there's not another person on the planet that 0:17:23.160 --> 0:17:26.639 has the skill set that Elon has, both in terms 0:17:26.680 --> 0:17:31.320 of the manufacturing prowess that we've developed and he has 0:17:31.359 --> 0:17:35.720 developed over many years, but also around AI, that confluence 0:17:35.760 --> 0:17:39.040 of those technology skills, I think there are very few 0:17:39.080 --> 0:17:45.440 people that have that, and therefore, obviously, looking at the 0:17:46.200 --> 0:17:50.280 risks associated with new technologies andology and risks that haven't 0:17:50.320 --> 0:17:53.320 even yet emerged around those technologies, I think he is 0:17:53.400 --> 0:17:55.800 the right person not only to take advantage of the 0:17:55.840 --> 0:17:58.880 opportunities for the company ahead of us, but also to 0:17:58.920 --> 0:18:03.080 make sure that there are not the pitfalls of new 0:18:03.119 --> 0:18:06.840 technologies that could happen. Obviously the board plays a role 0:18:06.840 --> 0:18:09.840 in that as well, and as from a governance perspective, 0:18:09.960 --> 0:18:15.000 looking at the types of evil that could be done 0:18:15.040 --> 0:18:17.880 with different types of technology is part of our purview 0:18:17.880 --> 0:18:20.639 as well, and it is why we have such a 0:18:20.680 --> 0:18:25.080 phenomenal board with the skill sets that we have, both 0:18:25.119 --> 0:18:28.120 from a technology perspective but also from a governance perspective, 0:18:28.200 --> 0:18:31.520 and so we play a role. But obviously the CEO 0:18:31.720 --> 0:18:35.240 the management team play an even bigger role on safeguarding 0:18:36.200 --> 0:18:40.320 companies and safety is a huge priority of ours as 0:18:40.320 --> 0:18:45.080 a company, and so when you're developing new technologies and 0:18:45.359 --> 0:18:50.760 technologies that other people have not yet developed globally, it 0:18:50.880 --> 0:18:52.760 is important to make sure that you have the right 0:18:52.880 --> 0:18:53.840 framework in place. 0:18:55.440 --> 0:18:58.119 Robin final question from the shareholder base is did the 0:18:58.320 --> 0:19:03.920 situation around the twenty eighteen package Chancery Delaware situation mean 0:19:03.960 --> 0:19:06.760 that the board had to hold off on authorizing any 0:19:06.800 --> 0:19:09.080 other investments or big strategic shifts. 0:19:10.480 --> 0:19:12.720 No, I don't think so. I mean, obviously we take 0:19:12.800 --> 0:19:16.520 into account a whole bunch of factors as we're working 0:19:16.600 --> 0:19:22.440 through strategy and different alternatives the company. 0:19:22.240 --> 0:19:24.240 Has ahead of us, but. 0:19:26.000 --> 0:19:32.120 Clearly the Delaware situation was disruptive, but not disruptive from 0:19:32.119 --> 0:19:36.399 a strategic point of view. Making sure that we have 0:19:37.040 --> 0:19:39.919 an eye on the future and the evolution of the 0:19:39.960 --> 0:19:43.280 company over the long term, I think is something that 0:19:43.520 --> 0:19:46.000 the board is focused on, but also something the management 0:19:46.040 --> 0:19:47.000 team is focused on. 0:19:48.560 --> 0:19:51.640 Robin Dunholm, Chair of Tessa's board. Thank you very much, 0:19:51.800 --> 0:19:57.840 Thank you. Adobe is hosting its annual user conference this week, 0:19:57.920 --> 0:20:00.680 where the company will announce it's continued in integrations of 0:20:00.760 --> 0:20:05.359 generative AI into flagship creativity and productivity tools. The announcements 0:20:05.400 --> 0:20:09.080 include an updated version of their fly Fi image model 0:20:09.119 --> 0:20:12.280 and an AI assistant in Adobe Express, and access to 0:20:12.320 --> 0:20:14.919 models from Google and open Ai. We sat down with 0:20:15.000 --> 0:20:19.440 Adobe CEO Shantanu Orion for an exclusive conversation about its 0:20:19.440 --> 0:20:20.280 AI ambitions. 0:20:21.280 --> 0:20:24.680 I think everybody is so focused right now on training 0:20:24.720 --> 0:20:27.679 and the creation of these models, and that's where the 0:20:27.720 --> 0:20:31.679 investment is until that moves to inference and you're starting 0:20:31.720 --> 0:20:34.520 to see, you know, the usage of that. All of 0:20:34.560 --> 0:20:36.760 this investment is not going to be monetized, and you're 0:20:36.800 --> 0:20:39.040 not going to get a return. So you know, I'm 0:20:39.440 --> 0:20:42.960 very confident that Adobe is already at the path where 0:20:43.119 --> 0:20:46.800 it's the inference, it's the usage, it's the workflows, it's 0:20:46.840 --> 0:20:50.159 the actual value that we provide to customers. That's going 0:20:50.240 --> 0:20:51.560 to be the long lasting value. 0:20:51.680 --> 0:20:56.760 You present to picture a human generated picture of a 0:20:56.800 --> 0:21:00.000 business in rude health to the market. 0:21:00.240 --> 0:21:01.280 Give you enough credit for that? 0:21:02.000 --> 0:21:03.840 Well, I think it's fair to say that you know 0:21:04.320 --> 0:21:07.359 the stock price right now I don't think represents because 0:21:07.359 --> 0:21:10.760 there's a question about software at large that I think 0:21:10.880 --> 0:21:15.000 is misunderstood when you look at how profitable we are, 0:21:15.040 --> 0:21:18.399 the growth prospects that we have models are going to 0:21:18.400 --> 0:21:20.919 be an on wrap, and what we have to do 0:21:20.960 --> 0:21:23.920 at Adobe is just to continue to focus on driving 0:21:23.960 --> 0:21:28.120 the innovation, on demonstrating the metrics that are power powering 0:21:28.160 --> 0:21:31.800 this underlying business, the early metrics and adoption of all 0:21:31.800 --> 0:21:35.639 of this technology. And that gives me great confidence that 0:21:35.720 --> 0:21:39.080 the innovation that we're doing, innovation is alive as well 0:21:39.119 --> 0:21:42.480 at Adobe as well as it's being recognized by our customers. 0:21:42.520 --> 0:21:47.600 So you know, we recognize that inference is where the 0:21:47.640 --> 0:21:50.000 action is. We're skating to where the puck is and 0:21:50.080 --> 0:21:52.439 you know, I think the stock will take care of itself, 0:21:52.480 --> 0:21:55.119 but it's certainly undervalued right now, which is why we're 0:21:55.400 --> 0:21:56.840 buying back a lot of our stock. 0:21:57.320 --> 0:21:58.560 Let me address this head on. 0:21:59.320 --> 0:22:02.880 Wool Street does not see Adobe as a place where 0:22:04.000 --> 0:22:07.159 AI innovation is happening. And you just said, you know, 0:22:07.720 --> 0:22:11.080 when inference comes, you will be there. What's the counter 0:22:11.280 --> 0:22:13.800 argument to the statement that I just made. 0:22:14.119 --> 0:22:19.399 I actually think Wall Street has recognized that AI and 0:22:19.760 --> 0:22:23.679 Adobe and the way we've innovated has actually been stellar. 0:22:24.359 --> 0:22:28.879 I think they're wondering where the monetization of training and inference. 0:22:29.200 --> 0:22:33.439 I think this incredible focus on chips and the infrastructure 0:22:33.480 --> 0:22:37.000 for training is where the action is right now, and 0:22:37.600 --> 0:22:40.160 you know, my belief is that it will switch to inference. 0:22:40.160 --> 0:22:43.240 So I would actually dispute the fact that they are 0:22:43.240 --> 0:22:46.800 not recognizing the innovation that we're providing. But I think 0:22:46.840 --> 0:22:49.919 they're waiting to, you know, see how that accelerates on 0:22:50.119 --> 0:22:51.760 the inference site. 0:22:53.760 --> 0:22:57.040 There was Adobe CEO Shantanuan Orion. Okay, some more news, 0:22:57.080 --> 0:22:58.200 It's time for talking tech. 0:22:58.280 --> 0:22:58.600 First. 0:22:58.600 --> 0:23:02.199 Our PayPal shares surging today after the company raised its 0:23:02.200 --> 0:23:05.320 full year earnings guidance and announce a new partnership with 0:23:05.680 --> 0:23:09.640 open Ai. The deal integrate PayPal's digital wallet into chat 0:23:09.680 --> 0:23:15.360 GPT products, enabling users to seamlessly turn searches into purchases. Plus, 0:23:15.400 --> 0:23:19.160