WEBVTT - Apple Hits $3T and Inflection AI Raises $1.3B 0:00:01.520 --> 0:00:05.840 From Mahard where Innovation, money and power Collie in Silicon 0:00:05.920 --> 0:00:10.360 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.600 --> 0:00:11.200 Ed Ludlow. 0:00:25.480 --> 0:00:27.240 I'm Ed Ludlow here in San Francisco. 0:00:27.280 --> 0:00:31.000 Caroline hids off today. This is Bloomberg Technology. Coming up 0:00:31.000 --> 0:00:34.600 on the program. Apple hits a three trillion dollar valuation. 0:00:34.800 --> 0:00:39.199 Will we close above that historic market cat milestone remains 0:00:39.200 --> 0:00:41.720 to be seen? The co founder of DeepMind now the 0:00:41.720 --> 0:00:45.120 CEO of Inflection AI. He discusses the potential of his 0:00:45.240 --> 0:00:49.559 company after raising a whopping one point three billion dollars 0:00:49.800 --> 0:00:53.080 and more trouble for Adobe's purchase of Figma, with the 0:00:53.200 --> 0:00:56.760 UK joining the EU and US in multiple probes of 0:00:56.760 --> 0:00:59.520 that twenty billion dollar deal. Such a big week in 0:00:59.560 --> 0:01:00.520 the world of ten technology. 0:01:00.680 --> 0:01:02.200 But there is one. 0:01:02.040 --> 0:01:06.000 Big story this Friday, and it is Apple, the first 0:01:06.040 --> 0:01:11.000 company ever to hit a three trillion dollar market cap. 0:01:11.040 --> 0:01:12.639 And this chart tells the story. 0:01:12.720 --> 0:01:16.520 Look at the nine hundred billion dollars of marketcap we've 0:01:16.560 --> 0:01:18.480 added so far in twenty twenty three. 0:01:18.600 --> 0:01:20.800 What is the story here? We will get to it in. 0:01:20.760 --> 0:01:22.800 Just a moment, but I remind you last time we 0:01:22.800 --> 0:01:24.800 were near that level was at the beginning of twenty 0:01:24.880 --> 0:01:25.280 twenty two. 0:01:25.319 --> 0:01:27.440 It's taken us that long to get back. 0:01:27.640 --> 0:01:29.280 There is one person you want to speak to on 0:01:29.319 --> 0:01:31.920 a daylight today, and it is Bloomberg's Mark German. 0:01:32.120 --> 0:01:32.440 Mark. 0:01:33.000 --> 0:01:36.720 You cover this company as close as any journalist on 0:01:36.800 --> 0:01:39.520 the planet. I want to start by asking you, what 0:01:39.640 --> 0:01:41.760 kind of a moment is this? What kind of a 0:01:41.800 --> 0:01:46.119 milestone in technology history is registering a three trillion dollar 0:01:46.160 --> 0:01:46.720 market cap? 0:01:48.160 --> 0:01:48.240 Ed? 0:01:48.320 --> 0:01:50.800 Thank you so much for having me. Obviously, this is 0:01:50.920 --> 0:01:56.120 a incredibly big milestone for Apple or any technology company really, 0:01:56.160 --> 0:01:58.480 and for Apple to do this, to get back to 0:01:58.520 --> 0:02:00.800 where it was in early twenty twenty too. You saw 0:02:00.840 --> 0:02:03.040 what happened to the broader market over the last year 0:02:03.120 --> 0:02:05.920 or so, and to really come back up that mountain 0:02:05.960 --> 0:02:08.600 and get back here is a big moment for the company. 0:02:09.040 --> 0:02:11.960 I think that you saw a slew of departures, not 0:02:12.080 --> 0:02:14.720 only at the executive level, but maybe at the mid 0:02:14.800 --> 0:02:18.040 level or lower level of the company. And one continued 0:02:18.120 --> 0:02:21.160 theme on those departures was people felt like their RSUs 0:02:21.280 --> 0:02:23.880 or the restricted stock units would not really pay out 0:02:23.880 --> 0:02:27.040 as much money as maybe they can earn in another company. Right, 0:02:27.120 --> 0:02:29.720 and the stock coming back up right, I think that 0:02:29.760 --> 0:02:31.919 could be a key way that Apple will be able 0:02:31.960 --> 0:02:35.079 to retain people moving forward as well. It adds new 0:02:35.120 --> 0:02:37.679 excitement to the rank and file at the company. They 0:02:37.680 --> 0:02:39.960 know what they're working towards. In terms of an ultimate 0:02:40.000 --> 0:02:43.160 payout for the consumer doesn't really have an impact, but 0:02:43.560 --> 0:02:46.280 I think internally at Apple it is a something they'll 0:02:46.320 --> 0:02:48.240 never say, but I think it is a quite a 0:02:48.280 --> 0:02:49.000 positive moment. 0:02:49.720 --> 0:02:52.480 That deep reporting is such a good point as well. 0:02:52.520 --> 0:02:55.359 It has not yet been brought up in our coveragejumping 0:02:55.480 --> 0:02:59.200 big Television of the three trillion dollar milestone. The short 0:02:59.280 --> 0:03:02.440 term story for the consumer has been about Vision Pro, 0:03:02.960 --> 0:03:06.680 but you argue in Today's Tech Daily that actually, if 0:03:06.720 --> 0:03:09.280 you think about the three trillion dollar market cap, it's 0:03:09.360 --> 0:03:11.359 not got much to do with Vision Pro at all. 0:03:11.400 --> 0:03:14.240 What's your point, Yeah, I think we would hit. 0:03:14.160 --> 0:03:16.240 This three trillion dollar market cap whether or not Apple 0:03:16.240 --> 0:03:19.120 announced the vision Pro head set in June at the 0:03:19.160 --> 0:03:22.400 Developers Conference or not. I think the Vision Pro story, 0:03:22.639 --> 0:03:24.920 you know, very long term for Apple could become an 0:03:24.919 --> 0:03:28.600 Apple Watch or iPad sized opportunity, which is about twenty 0:03:28.600 --> 0:03:31.160 five billion annually to the bottom line. And that's in 0:03:31.200 --> 0:03:33.680 the real long term. In the short term, you're not 0:03:33.880 --> 0:03:36.200 likely to see this generate more than two to four 0:03:36.240 --> 0:03:40.800 billion a year annually for Apple, which is essentially very small. 0:03:40.840 --> 0:03:43.600 It's one to two percent of their overall annual revenue. 0:03:43.800 --> 0:03:46.560 It's really the ecosystem play, right. It's the idea that 0:03:46.600 --> 0:03:48.880 the ecosystem walks you in and such, where you're going 0:03:48.960 --> 0:03:51.680 to own an iPhone, an iPad, a Mac, and then 0:03:51.840 --> 0:03:54.080 every few years or so, you're going to upgrade to 0:03:54.120 --> 0:03:56.440 new models. On top of that, you're going to subscribe 0:03:56.760 --> 0:03:59.040 to services, you're going to use Apple Care, You're going 0:03:59.080 --> 0:04:01.040 to visit Apple retail stores. You're going to buy more 0:04:01.040 --> 0:04:04.680 accessories like air pods, the Apple Watch, and maybe one 0:04:04.760 --> 0:04:06.760 day the Vision Pro at a cheaper price as well. 0:04:07.360 --> 0:04:10.440 And so that's stickiness, the idea where consumers are willing 0:04:10.480 --> 0:04:13.240 to spend extra. They're really willing to shell out for 0:04:13.360 --> 0:04:16.279 a new iPhone, the priciest iPhone, the most storage you 0:04:16.320 --> 0:04:19.440 can get. That's what makes this company so lucrative and 0:04:19.480 --> 0:04:23.680 so special to the shareholder. One really important aspect that 0:04:23.720 --> 0:04:26.080 we also haven't touched upon about this three trillion dollar 0:04:26.120 --> 0:04:29.279 measure is that we're heading right into iPhone season. Believe 0:04:29.279 --> 0:04:31.440 it or not, We're only about two months away from 0:04:31.480 --> 0:04:35.479 the iPhone fifteen going on sale. The iPhone fifteen is 0:04:35.520 --> 0:04:38.039 going to be a pretty significant upgrade on both the 0:04:38.040 --> 0:04:40.240 low end models and the high end models for the 0:04:40.279 --> 0:04:43.000 first time in three years since the iPhone twelve lunch 0:04:43.080 --> 0:04:43.839 in twenty twenty. 0:04:44.240 --> 0:04:46.120 New design, big camera. 0:04:45.960 --> 0:04:49.600 Improvements, changes to the display on the cheaper models, You're 0:04:49.640 --> 0:04:52.080 going to see another big iPhone upgrade cycle, and so 0:04:52.120 --> 0:04:55.440 I think consumers are excited to only be eight weeks 0:04:55.440 --> 0:04:58.960 away from that, and shareholders see that excitement, and so 0:04:59.000 --> 0:05:01.760 you're likely to see a big influx of purchases in 0:05:01.839 --> 0:05:03.720 just a few months, which obviously is going to drive 0:05:03.760 --> 0:05:07.000 attention to purchasing the stock too mark quickly. 0:05:07.760 --> 0:05:11.880 The one phrase or word you haven't used is artificial intelligence. 0:05:12.520 --> 0:05:15.239 Why are we not talking about Apple in the context 0:05:15.279 --> 0:05:16.440 of artificial intelligence? 0:05:17.480 --> 0:05:20.279 Because Apple has really set out this recent AI boom 0:05:20.360 --> 0:05:22.640 right over the past year or so. You've seen Microsoft, 0:05:22.680 --> 0:05:27.200 Google obviously open AI with chat GPT. You've seen Amazon 0:05:27.400 --> 0:05:30.000 all throw around the buzzword and talking about their new 0:05:30.040 --> 0:05:33.640 generative AI chatbots and such. Apple has really stood on 0:05:33.640 --> 0:05:37.600 the sidelines here and I don't anticipate any significant new 0:05:37.720 --> 0:05:41.680 AI related service from Apple to launch until the tail 0:05:41.800 --> 0:05:44.960 end of twenty twenty four calendar year twenty twenty four 0:05:45.279 --> 0:05:48.320 at the earliest, so there's not much there. I know 0:05:48.360 --> 0:05:51.159 there's been some speculation for analysts and such that Apple 0:05:51.240 --> 0:05:54.960 is nearing some sort of generative AI ecosystem. There's nothing 0:05:55.040 --> 0:05:57.240 coming soon, and so I don't really think that could 0:05:57.279 --> 0:05:59.599 be priced into the stock as of yet. And I 0:05:59.600 --> 0:06:04.120 don't have necessarily think that Apple is planning very significant 0:06:04.160 --> 0:06:06.960 AI initiatives other than a new AI based health coaching 0:06:07.000 --> 0:06:10.400 service for next year. But obviously the mother of all 0:06:10.480 --> 0:06:13.280 AI projects, as Jim Cookers said, is the company's self 0:06:13.320 --> 0:06:16.320 driving car. You're unlikely to see that at least for 0:06:16.360 --> 0:06:17.400 another four years or so. 0:06:18.120 --> 0:06:19.680 Yeah, you and I have done a lot of digging 0:06:19.720 --> 0:06:21.800 on the subject of an Apple self driving car. Will 0:06:21.839 --> 0:06:24.200 stick with it. Bloombo's Mark Gum and everything Apple, Thank 0:06:24.200 --> 0:06:27.200 you so much. Happy Friday. All right, that's top story 0:06:27.240 --> 0:06:29.240 number one. Top story number two. We go to the UK, 0:06:29.640 --> 0:06:33.279 where anti trust regulators launching an in depth investigation into 0:06:33.320 --> 0:06:37.160 Adobe's twenty billion dollar purchase of Figma. Let's get the details. 0:06:37.160 --> 0:06:40.279 Bloomberg's Caffine Gemmel live for us in London. Cafriine, what 0:06:40.320 --> 0:06:40.640 do we know. 0:06:42.160 --> 0:06:43.640 Hi, thanks very much for having me. 0:06:44.160 --> 0:06:46.080 So what we know today is that the CMEs of 0:06:46.120 --> 0:06:49.440 the Competition of Markets Authority has said that as the 0:06:49.480 --> 0:06:53.240 Adobe FIGMADY will need an in depth investigation unless the 0:06:53.320 --> 0:06:57.719 companies offer any remedies up to solve these anti trust 0:06:57.760 --> 0:06:59.880 problems that they have found. 0:06:59.640 --> 0:07:04.120 In the stage of this investigation. So, I mean, the 0:07:04.120 --> 0:07:08.719 main concerns from the CME are that within the design 0:07:09.440 --> 0:07:13.320 platform and the supply of screen tools as well. I know, 0:07:13.400 --> 0:07:16.040 these are two areas where Adobe and Pegma really compete, 0:07:16.320 --> 0:07:19.560 and the main concerns are that if Adobe bis stigma, 0:07:20.000 --> 0:07:21.960 then that means that they're really going to take that 0:07:21.960 --> 0:07:24.320 competition away and that could rise that could leave to 0:07:24.440 --> 0:07:28.160 arise in prices for customers and could also stifle innovation. 0:07:29.720 --> 0:07:32.800 We're just showing the shares of Adobe at one point 0:07:32.840 --> 0:07:36.080 six percent near session highs. When you get a headline 0:07:36.160 --> 0:07:40.920 like this, sometimes the stocks react negatively because the market's thinking, wow, 0:07:41.040 --> 0:07:42.480 maybe this deal won't happen. 0:07:43.200 --> 0:07:44.720 Is that the situation we're in now? 0:07:44.760 --> 0:07:47.760 How serious is this development in the context of a 0:07:47.840 --> 0:07:49.080 deal actually getting done? 0:07:50.280 --> 0:07:52.360 We look, I mean, it's too early right now to 0:07:52.520 --> 0:07:55.520 know whether it's serious or not. I mean these deals. 0:07:55.320 --> 0:07:58.480 Will obviously always get some scrutiny. This particular deal is 0:07:58.520 --> 0:08:02.040 also getting scrutiny as Ideal and the US and as 0:08:02.080 --> 0:08:04.520 potentially pheasans go to meet in Europe. So I mean 0:08:04.560 --> 0:08:06.440 we'll need to, you know, find out what the CME 0:08:07.400 --> 0:08:11.120 finds and its potential fees to investigation, whether we know 0:08:11.160 --> 0:08:12.240 it's going to be CDs or not. 0:08:12.280 --> 0:08:14.680 These are just the stages that these sorts of deals 0:08:14.720 --> 0:08:17.240 have to go through. And of course you know that 0:08:17.320 --> 0:08:20.240 the CME that people rely on. Consumers in the UK 0:08:20.360 --> 0:08:21.880 rely on the CME to do to make sure that 0:08:21.920 --> 0:08:23.240 consumers are getting a good deal. 0:08:25.000 --> 0:08:27.800 The Moss Catherine Gemel in London. How often is this happening? 0:08:28.040 --> 0:08:32.040 The trifecta US, EU, UK regulators when we're talking about 0:08:32.040 --> 0:08:34.960 a tech deal. Great reporting this Friday, we'll stick with it. 0:08:35.240 --> 0:08:35.400 Now. 0:08:35.440 --> 0:08:38.520 Coming up, Inflection AI CEO is going to join us 0:08:38.679 --> 0:08:43.079 to discuss the company's one point three billion dollar fundraise 0:08:43.280 --> 0:08:45.600 and it came from the likes of Reid Hoffman, Bill 0:08:45.679 --> 0:08:53.959 Gates in Nvidia. Big conversation coming up this is Bloomberg Technology. 0:09:00.400 --> 0:09:03.840 Inflection AI has just announced it's raised one point three 0:09:04.240 --> 0:09:08.560 billion dollars in funding from investors like in Video and 0:09:08.640 --> 0:09:11.760 Earlier this year, Inflection Ai launched its first product, a 0:09:11.880 --> 0:09:17.120 chatbot called Pie, a personally modeled AI chat box. Inflection 0:09:17.200 --> 0:09:20.400 Ai CEO and co founder The Stuffa Sullyman joins us 0:09:20.600 --> 0:09:26.280 from London. Interestingly, Congratulations, what is frankly a monster a round? 0:09:26.600 --> 0:09:28.600 Why did you need to raise that much money? 0:09:30.000 --> 0:09:30.240 Thanks? 0:09:30.360 --> 0:09:32.560 Ed, Yeah, great to be with you and appreciate the congrats. 0:09:32.600 --> 0:09:36.120 I mean, you know, we're really building the cutting edge 0:09:36.120 --> 0:09:38.679 of machine learning models today in order to create Pie, 0:09:38.960 --> 0:09:42.320 our conversational AI, and that requires vast amounts of compute. 0:09:42.360 --> 0:09:46.200 I mean, we're actually constructing the largest supercomputer in the 0:09:46.200 --> 0:09:49.240 world today, built on in videos h one hundred chips, 0:09:49.840 --> 0:09:53.480 and that's obviously very expensive, but as a startup, it 0:09:53.559 --> 0:09:55.720 actually enables us to get the best of both worlds. 0:09:55.800 --> 0:09:58.000 Have you know, the kind of resources that you might 0:09:58.040 --> 0:10:01.600 otherwise expect in a big tech company, but also the speed, 0:10:01.640 --> 0:10:04.480 agility and super high quality talent that you get when 0:10:04.520 --> 0:10:06.880 you bring together the kinds of folks that have been 0:10:06.920 --> 0:10:09.440 involved in building all the last generation of models at 0:10:09.559 --> 0:10:11.880 deep Mind, Open Ai and at Google. 0:10:13.400 --> 0:10:17.160 All the attention goes to Nvidia because they are participating 0:10:17.200 --> 0:10:21.240 in this roundless stuffer that you are building the underlying 0:10:21.400 --> 0:10:24.000 LM or foundation model using their H. 0:10:23.960 --> 0:10:26.160 One hundred GPUs. 0:10:27.280 --> 0:10:29.360 Yeah, I mean, we have an incredible partnership with them. 0:10:29.400 --> 0:10:31.840 They've been fantastic to us. Not only they investing in 0:10:31.880 --> 0:10:35.440 this round, but they made us their key partner to 0:10:35.520 --> 0:10:38.680 get access to H one hundreds and we've built a 0:10:38.800 --> 0:10:41.200 really powerful cluster with them. Just a couple of days ago, 0:10:41.280 --> 0:10:45.040 we announced that we have the fastest performing AI cluster 0:10:45.160 --> 0:10:48.000 in the world, and in a few months time we 0:10:48.040 --> 0:10:50.480 will have increased the size of that cluster to be 0:10:50.679 --> 0:10:53.680 the second largest supercomputer on the planet, which is just 0:10:53.960 --> 0:10:57.719 an incredible opportunity. And so we're super grateful for their partnership, 0:10:57.960 --> 0:11:01.000 but also the partnership with Microsoft. You know, we use Azure. 0:11:01.040 --> 0:11:04.000 They have an incredible cluster there and their AI infrastructure 0:11:04.040 --> 0:11:05.000 is also second. 0:11:04.679 --> 0:11:06.439 To none the stuff. 0:11:06.760 --> 0:11:09.600 When I bumped into you in the corridor of Bloomberg 0:11:09.679 --> 0:11:12.800 Technology Summit last week, I reminded you of something you 0:11:12.800 --> 0:11:17.640 said on stage about AI development being a meritocracy. You 0:11:17.720 --> 0:11:19.520 mentioned that in passing, but I wondered if you could 0:11:19.520 --> 0:11:21.120 elaborate on what you meant by that. 0:11:22.720 --> 0:11:25.320 Well, it's a meritocracy in the sense that you know, 0:11:25.360 --> 0:11:27.800 the cutting edge is also being open sourced and made 0:11:27.840 --> 0:11:32.480 available to millions of developers around the world to adapt, innovate, 0:11:32.520 --> 0:11:37.040 and experiment. And it's kind of an incredibly interesting time 0:11:37.080 --> 0:11:40.040 because on the one hand, models are getting bigger and better, 0:11:40.240 --> 0:11:43.280 and on the other they're also getting more efficient, smaller, 0:11:43.360 --> 0:11:47.600 and cheaper to run. So both directions of progress are 0:11:47.600 --> 0:11:50.719 really being turbocharged in this new wave of AI, and 0:11:50.720 --> 0:11:54.440 that's incredibly meritocratic, and we're seeing huge innovation at both 0:11:54.520 --> 0:11:54.920 ends of the. 0:11:54.840 --> 0:12:00.320 Spectrum supercharged in a meritocratic way. But you guys, is 0:12:00.840 --> 0:12:03.400 kind of have a big advantage in the access to 0:12:03.440 --> 0:12:07.920 the H one hundreds and the compute that the GPUs provide. 0:12:08.440 --> 0:12:10.240 Is there a way you can kind of quantify the 0:12:10.280 --> 0:12:12.920 advantage for me? I think a lot of people will say, Okay, 0:12:13.000 --> 0:12:16.360 we have Inflection AI and PI, how is it similar 0:12:16.400 --> 0:12:20.199 and or different to open AI and GPT three point five. 0:12:20.760 --> 0:12:25.240 What is the difference technologically and the goals as well? 0:12:25.360 --> 0:12:29.240 Yeah, it's a fair question. So our most recent LLLM, 0:12:29.280 --> 0:12:33.680 which is called Inflection one, is actually better on all 0:12:33.720 --> 0:12:38.520 of the public benchmarks than googled Palm one. Deep minds 0:12:38.600 --> 0:12:43.880 Chinchilla and open AI's three point five, which is a 0:12:43.880 --> 0:12:47.400 great achievement for a small organization like ours. In terms 0:12:47.400 --> 0:12:49.920 of the total amount of compute that we have, the 0:12:49.960 --> 0:12:54.559 twenty two thousand, h one hundreds in aggregate represents three 0:12:54.640 --> 0:12:59.200 times more computation than was required to train GPT four 0:12:59.360 --> 0:13:03.000 according to the best guesses of the rumors online these days. 0:13:03.360 --> 0:13:05.800 So it is a seismic amount of compute and it 0:13:05.840 --> 0:13:09.240 gives us an enormous advantage because we're really concerned with 0:13:09.320 --> 0:13:11.760 building the absolute cutting edge, like we really want to 0:13:11.760 --> 0:13:14.320 build the absolute best experiences in the world, so that 0:13:14.400 --> 0:13:18.400 when you get access to your personal AI PI, it's 0:13:18.480 --> 0:13:20.520 going to be aligned with your interests and on your 0:13:20.559 --> 0:13:23.640 team and increasingly be able to do useful things for you. 0:13:23.720 --> 0:13:26.199 It will book, you know, appointments for you, it will 0:13:26.240 --> 0:13:29.600 plan holidays, it will buy things for you and be 0:13:29.679 --> 0:13:32.680 a scheduler. And everybody has been waiting for that moment 0:13:32.760 --> 0:13:35.560 when the real personal digital assistant arrives, and we think 0:13:35.559 --> 0:13:39.000 that PI, you know PI dot ai where where you 0:13:39.040 --> 0:13:41.679 can access it online, is really going to be that assistant. 0:13:43.000 --> 0:13:47.400 Mastafa, you use words like building and I think about 0:13:47.480 --> 0:13:53.000 your past, your career, your time, at DeepMind Google. How 0:13:53.000 --> 0:13:55.400 important is it right now that you are basically moving 0:13:55.400 --> 0:14:00.600 from research to real world introduction of a tool. You know, 0:14:00.679 --> 0:14:04.800 a lot of people are calling to hit the brakes 0:14:04.880 --> 0:14:10.080 right on development. That seems to be the point of differentiation, 0:14:10.280 --> 0:14:14.120 moving from development of future generations and models, or indeed 0:14:14.120 --> 0:14:17.480 the research arm to having a product that businesses and 0:14:17.520 --> 0:14:18.640 consumers can use. 0:14:20.200 --> 0:14:22.600 I mean, AI is now coming of age. I mean 0:14:22.640 --> 0:14:26.280 this is going to be the meta technology of our times. 0:14:26.400 --> 0:14:30.040 It is going to be the technology that enables everything else, 0:14:30.880 --> 0:14:36.760 just like electricity or steam powered the last huge industrial revolutions. 0:14:37.360 --> 0:14:40.040 And so that's very exciting for us because it's a 0:14:40.120 --> 0:14:44.520 very practical time. You know, we're doing applied research, We're 0:14:44.520 --> 0:14:48.040 getting things to work in production and at scale with 0:14:48.200 --> 0:14:51.400 millions of users. And that's really the fun of it 0:14:51.440 --> 0:14:54.360 is making these things very very useful and seeing how 0:14:54.400 --> 0:14:59.680 they save time, improve performance, increase quality, and increasingly enable 0:14:59.760 --> 0:15:03.280 us to actually create completely new experiences that technology has 0:15:03.360 --> 0:15:05.920 never enabled before. I kind of think of this as 0:15:05.920 --> 0:15:08.840 a new sort of design material. It's a new clay 0:15:09.360 --> 0:15:14.000 that we can use to mold and create emergent, entirely personalized, 0:15:14.400 --> 0:15:17.920 and completely adaptive experiences. Which are going to feel very 0:15:18.000 --> 0:15:21.480 unlike the kinds of static user interfaces that we've had 0:15:21.520 --> 0:15:23.880 of the past. I mean, today, a website is a 0:15:23.880 --> 0:15:26.360 website is a website. It's just static and two D 0:15:26.480 --> 0:15:30.120 and it stays the same. Tomorrow, your conversational AI is 0:15:30.120 --> 0:15:33.520 going to enable you to experience dynamic, real time generated 0:15:33.600 --> 0:15:38.120 personalized user interface and it will feel really magical compared 0:15:38.160 --> 0:15:40.480 to what we've had in the past and. 0:15:40.400 --> 0:15:44.400 The stuff of what scares you in all of this. 0:15:45.880 --> 0:15:48.840 I think what's amazing about this technology is that it 0:15:48.920 --> 0:15:53.200 is the ultimate force amplifier. Right wherever there is a 0:15:53.360 --> 0:15:58.080 desire to take actions in the world to generate new content, 0:15:58.560 --> 0:16:00.920 you know, people are now going to have access to 0:16:01.000 --> 0:16:04.680 a tool that makes that easier to plan and to create. 0:16:05.280 --> 0:16:07.600 And of course, you know that's going to lower the 0:16:07.600 --> 0:16:11.320 barrier to entry to create chaos, and some people, you know, 0:16:11.480 --> 0:16:15.000 with bad intentions will choose to you know, amplify the 0:16:15.040 --> 0:16:19.240 disruption unfortunately. But I'm pretty confident that the vast majority 0:16:19.280 --> 0:16:22.320 of people are going to use these tools for incredible 0:16:22.880 --> 0:16:27.040 good and that where there are downsides, like for example, 0:16:27.080 --> 0:16:31.080 the spread of misinformation or the growth of counterfeit people 0:16:31.160 --> 0:16:34.200 which imitate you know, real humans. I think we're going 0:16:34.280 --> 0:16:35.960 to get control of that pretty quickly. 0:16:36.880 --> 0:16:38.720 And the stuff that you're joining us from London, What 0:16:38.760 --> 0:16:41.400 are you doing in my old stumping ground, my hometown. 0:16:43.720 --> 0:16:45.840 Well, this week coming up, we have a hackathon with 0:16:45.920 --> 0:16:50.760 our team. We relocate to a different city, you know, 0:16:50.840 --> 0:16:54.120 every month or so we get together and we work 0:16:54.160 --> 0:16:57.120 on a project. So you should expect some exciting new 0:16:57.160 --> 0:17:00.160 product features to be coming out in the next few week. 0:17:00.320 --> 0:17:02.760 It's just a great time to be building. So it's 0:17:02.800 --> 0:17:04.440 great to be here in London in the summer too. 0:17:05.480 --> 0:17:08.040 Inflection Ai CEO Ma Stuffer Salum and I feel like 0:17:08.040 --> 0:17:10.080 I see you every week. But we're on a good trend. 0:17:10.119 --> 0:17:20.680 Thank you so much. All right, time for talking tech. 0:17:20.760 --> 0:17:24.320 First up, the Netherlands published new export controls that will 0:17:24.520 --> 0:17:29.080 restrict more ASML chip making machines from being sent to China. 0:17:29.240 --> 0:17:32.359 This new Dutch regulation will force ASML to apply for 0:17:32.400 --> 0:17:37.560 shipping licenses to export DUV systems as early as September first, 0:17:38.000 --> 0:17:41.080 and one of Apple's biggest supplies, Foxconn, will invest about 0:17:41.080 --> 0:17:43.840 two hundred and forty six million dollars in two new 0:17:43.880 --> 0:17:49.200 projects in Kwang Nin, Vietnam. The plants FECV and FMMV 0:17:49.720 --> 0:17:53.480 FOXCN were awarded investment licenses and will begin operations in 0:17:53.520 --> 0:17:55.640 twenty twenty four and twenty twenty five. 0:17:55.840 --> 0:17:56.320 Plus. 0:17:56.760 --> 0:18:02.080 Airbnb is dismissing data in a viral that suggested revenue 0:18:02.280 --> 0:18:05.200 for property owners in some US cities was down nearly 0:18:05.560 --> 0:18:11.080 fifty percent. Airbnb spokesperson Sam Rendell said the data is 0:18:11.119 --> 0:18:14.640 not consistent with airbnbs and that the demand for short 0:18:14.760 --> 0:18:18.320 term rentals is alive and well. Joining us for more 0:18:18.359 --> 0:18:21.120 to talk about this, Bloomberg's Natalie Lung. 0:18:21.240 --> 0:18:23.199 Natalie explain this one to me. 0:18:23.320 --> 0:18:25.119 There was a viral tweet we're going to show it 0:18:25.160 --> 0:18:28.320 in just a moment that said basically, people that have 0:18:28.480 --> 0:18:31.199 Airbnb homes, they're not making any money. 0:18:32.480 --> 0:18:32.680 Right. 0:18:33.200 --> 0:18:36.480 So this viral tweet that came out around two days 0:18:36.480 --> 0:18:41.280 ago that showed had data from all the rooms which 0:18:41.359 --> 0:18:50.160 aggregates Airbnb and vrbo listings data showing in cities like Sevenville, Phoenix, 0:18:50.280 --> 0:18:54.760 Austin are seeing revenue per listing drop nearly fifty percent, 0:18:55.800 --> 0:18:59.480 And what's god people talking about this data is obviously 0:18:59.520 --> 0:19:04.760 the fixed, but also people were wondering like the accuracy 0:19:04.880 --> 0:19:07.600 and veracity of the data because there was an other 0:19:07.800 --> 0:19:14.160 data source, air DNA, which is also widely cited by 0:19:14.480 --> 0:19:16.880 the hotel and short ton reto industry. 0:19:17.000 --> 0:19:18.440 Their data shows for. 0:19:18.480 --> 0:19:22.119 The same markets, the decline is more muted, so around 0:19:22.119 --> 0:19:23.000 in the single digits. 0:19:23.920 --> 0:19:26.040 The biggest one was around nine percent. 0:19:27.359 --> 0:19:30.120 Natalie very quickly Airbnb's response to. 0:19:30.040 --> 0:19:34.280 This, Yes, they are saying this data is not consistent 0:19:34.320 --> 0:19:37.359 with what they're seeing. They reported a record revenue in 0:19:37.520 --> 0:19:43.560 verset Q and they're still seeing shorng demand for short tomentos. 0:19:45.160 --> 0:19:47.560 All right, Bloomberg's Natalie Lung reporting there out of the 0:19:47.600 --> 0:19:48.080 East Coast. 0:19:48.160 --> 0:19:49.120 Thank you so much. 0:19:57.760 --> 0:20:00.960 Welcome back to Bloomberg Technology and lovel here in San Francisco. 0:20:01.040 --> 0:20:05.560 Let's turn to data intelligence platform Elation, recently named Data 0:20:05.600 --> 0:20:08.600 Governance Partner of the Year. But get this by both 0:20:08.680 --> 0:20:13.760 Snowflake and Data Bricks CEO Sachin Sanghani joins me here 0:20:13.800 --> 0:20:17.720 in San Francisco for more. Find this really interesting because 0:20:18.400 --> 0:20:21.960 Snowflake and Data Bricks, you could call them frenemies, you 0:20:21.960 --> 0:20:25.600 could call them rivals. They both pick you. That's an 0:20:25.600 --> 0:20:29.600 interesting triangle. Tells me about the relationship with both companies. 0:20:29.600 --> 0:20:31.960 And thank you for having me. It's great to be here. 0:20:33.600 --> 0:20:37.000 Both companies are quite interesting. They had their conferences this week, 0:20:37.200 --> 0:20:38.920 both at the same time, both at the same time, 0:20:39.160 --> 0:20:42.639 which may have been purposeful, may not. But both of 0:20:42.640 --> 0:20:45.960 them had twelve thousand attendees at the conference. So while 0:20:46.000 --> 0:20:48.760 they both operate in the same space, they also have 0:20:48.960 --> 0:20:52.760 quite distinct audiences that use them and leverage them and 0:20:52.960 --> 0:20:55.040 quite indicative of the growth in data. If you think 0:20:55.080 --> 0:20:57.520 about ten years ago when Elation was founded, when data 0:20:57.520 --> 0:21:00.360 Bricks was roughly founded, with Snowflake was roughly found, did 0:21:00.600 --> 0:21:03.600 these are companies that had twenty five hundred people at 0:21:03.600 --> 0:21:06.320 the biggest data conferences and now you have almost ten 0:21:06.400 --> 0:21:08.280 times that amount. So both of them are indicative of 0:21:08.320 --> 0:21:12.040 the massive growth and data and we're excited to be 0:21:12.080 --> 0:21:14.040 a part of it and excited to rationalize all of 0:21:14.040 --> 0:21:15.680 this data in the ecosystem. 0:21:15.800 --> 0:21:19.800 I reported recently that data Bricks is SQL producted passed 0:21:19.840 --> 0:21:22.359 one hundred million dollars in any lized revenue. That's an 0:21:22.400 --> 0:21:24.639 area they're trying to grow. Kind of puts them in 0:21:24.640 --> 0:21:27.919 an interesting territory with Snowflake. How do you work with 0:21:27.960 --> 0:21:31.879 both companies? What is the interplay between Elation and their 0:21:32.359 --> 0:21:35.159 both sort of that I mean everything from mL and 0:21:35.200 --> 0:21:38.160 AI through to cloud based enterprise is interesting. 0:21:38.840 --> 0:21:42.840 So we describe Elation as a data intelligence platform. 0:21:42.920 --> 0:21:43.440 What is that? 0:21:43.480 --> 0:21:46.280 What does that exactly mean? Well, if you live inside 0:21:46.280 --> 0:21:49.960 of the standard enterprise, think about companies like Pfizer and 0:21:50.080 --> 0:21:53.960 Cisco and Virsion Australia, Nasdaq, all of whom are Elation customers. 0:21:54.400 --> 0:21:57.159 These are companies that have petabytes and petabytes of data 0:21:57.280 --> 0:22:02.840 strewn across data bricks, Snowflake, Amazon, Microsoft, Oracle, all of 0:22:02.880 --> 0:22:06.760 this legacy technology that it has existed since, you know, 0:22:06.840 --> 0:22:09.760