Speaker 1: From the heart where innovation, money and power Collie in
Speaker 1: Silicon Valley NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and.
Speaker 3: Ed Ludlow.
Speaker 4: From New York and San Francisco. This is Bloomberg Technology
Speaker 4: and tech Talks are on a roll for another weekly gain.
Speaker 4: As fedshare pal says the time has come for raycuts
Speaker 4: and read from Jackson Hole.
Speaker 5: Harris backs America in AI and the space race. At
Speaker 5: the close of the DNC, we have the reaction from Chicago, an.
Speaker 4: Open AI opposition. We are joined by California State Senator
Speaker 4: Scott Wiener as industry leaders push against his proposed AI legislation.
Speaker 4: First as check in on these markets, and it's all
Speaker 4: about fed share pow. It's all about an increase of
Speaker 4: eight ten percent now notable than in fact, the NASA
Speaker 4: one hundred is actually coming off of its highs of
Speaker 4: earlier trading. This really is just showing that there is
Speaker 4: a rebound. I hope for these rate cuts to kick
Speaker 4: in as soon as September, but we suddenly saw actually
Speaker 4: we're joining a light on some of the French companies
Speaker 4: here and the pound overall. I was going to show
Speaker 4: you what the bomb market was up to when the
Speaker 4: fact that crypto has also been on the higher side. Edd,
Speaker 4: But what are you watching on the micro basis?
Speaker 5: I want to go straight to Nvidia because we've talked
Speaker 5: about how in Video's earnings next Wednesday, August twenty eight
Speaker 5: will be a macro level event and we'll talk a
Speaker 5: bit more about the markets. Right, Cara, were on the
Speaker 5: heels of that Powell statement, which is highly anticipated.
Speaker 4: It certainly was. We were all focusing in on what
Speaker 4: was occurring with Jackson Holme more broadly, we're all thinking
Speaker 4: about what this meant for the tech sector. Look, it's
Speaker 4: no surprises once again, when you're looking at the NASAK
Speaker 4: and the NaSTA one hundred. It is the key players
Speaker 4: that we're so used to leading us high. It is
Speaker 4: the in videos of this world. And maybe that's the
Speaker 4: macro event for your and my market at the moment
Speaker 4: where all eyes on August of twenty eighth, in Videos
Speaker 4: earnings coming and indeed what that means for the picture
Speaker 4: for AI. Not much of that coming from Jackson Hole today,
Speaker 4: of course, there is much more a signal from fed
Speaker 4: chair pal about the fact that the time has come
Speaker 4: for rate cuts. The time has been assessed that really
Speaker 4: we are seeing that weakness in the labor market that
Speaker 4: he doesn't want to accentuate any further. I'm pleased to
Speaker 4: say that to get a weaving of the narrative of
Speaker 4: what comes from a macro policy perspective and how it
Speaker 4: hits the micro in terms of individual movers, we can
Speaker 4: bring in one jess menton look, I mean, we're coming
Speaker 4: off of our highs, but certainly what fed chair pal
Speaker 4: said fueled the market of setting some of yesterday's weakness,
Speaker 4: but only some of it.
Speaker 6: That's right. And even though we've seen some of the
Speaker 6: indexes come off some of those highs, still the S
Speaker 6: and P five hundred is a whisker away from that
Speaker 6: all time high on July tenth, and the Nasdaq one
Speaker 6: hundred's still about four percent away from that. But we
Speaker 6: want to see underneath the hood when it comes to
Speaker 6: tech and what's rallying, it's actually the unprofitable tech companies.
Speaker 6: So Goldman Sacher actually has a basket that tracks that
Speaker 6: it's actually at more than two percent at this point.
Speaker 6: So then you're seeing other corners of the stock market
Speaker 6: that obviously are going to benefit from easing policy. Here,
Speaker 6: see like the Russell tooth and small caps taking off
Speaker 6: over two percent, but then also companies with weaker type
Speaker 6: balance sheets because there's different baskets that city, and then
Speaker 6: others track as well, and you're seeing those outperforming right
Speaker 6: now too.
Speaker 5: Jess, I always go straight to niglobe wrap on the
Speaker 5: Bloomberg terminal. I just look at the top line and
Speaker 5: I say, how does the Bloomberg USERM feel about this?
Speaker 5: And they call it the pal pivot. Maybe it's more
Speaker 5: of like a fed victory lap. I think is some
Speaker 5: of the narrative from Jackson Hole. But let's please go
Speaker 5: back to Nvidia. We kind of knew this would happen
Speaker 5: at some point, a rate cut being on the table.
Speaker 5: August twenty eighth in video is our super Bowl here
Speaker 5: on Bloomberg Technology.
Speaker 6: Of course, and as you know, Esha Day on our
Speaker 6: equities team actually did the taking stot Colum this morning.
Speaker 6: But if you look at what city's pricing in stuke
Speaker 6: Kaiser when it comes to the potential swing here in
Speaker 6: the options market, betting on what we see because to
Speaker 6: your point, in video reports after the bell on Wednesday,
Speaker 6: so the following day during intra day trading, the swing
Speaker 6: could be around ten percent in either direction for Nvidia
Speaker 6: in particular, so that's actually above its longer term average
Speaker 6: of about seven and a half percent. What that means
Speaker 6: is what does it mean for other potential chip stike sucks,
Speaker 6: which obviously a lot of them have come down because
Speaker 6: we had that sell off obviously after things peaked out
Speaker 6: for the NASUAQ one hundred back in July. But of
Speaker 6: course we've seen a bounce back here, so it'll be
Speaker 6: interesting to see as far as even though valuations came
Speaker 6: down a bit, they came back up slightly because of
Speaker 6: the rebound we saw in the past couple of weeks,
Speaker 6: so that'll really shape the direction. Even though volatility is
Speaker 6: expected to fade a bit over the next couple of weeks,
Speaker 6: just because heading into obviously Labor Day, that's still going
Speaker 6: to be a big volatile move potentially next Thursday, after
Speaker 6: we hear from Nvidia after the bell on Wednesday, and in.
Speaker 5: Video up almost four percent, not at session highs, but
Speaker 5: still op significantly. Bloomberg's just men and Happy Friday, okay.
Speaker 5: With the US market heavily concentrated in tech hardware in particular,
Speaker 5: especially in Vidia, investors are looking ahead to the company's
Speaker 5: quarterly results. As we said August twenty eighth, Wednesday, after market,
Speaker 5: let's bring in Alison Porter. She's a portfolio manager at
Speaker 5: Janis Henderson Investors covering their global technology leaders and sustainable
Speaker 5: future technology funds. And that's the date of play. Jackson
Speaker 5: Hole has been and gone in videos next Wednesday, which
Speaker 5: is top of mind for you, Allison.
Speaker 7: I think you know we very much focus on the
Speaker 7: bottom up and focus on where the technology, sayclers, and
Speaker 7: the key focus is going to be on earnings next week,
Speaker 7: and you know, seeing if the enterprise demand pick up
Speaker 7: that we saw some signs of that from both Cesesco
Speaker 7: and the novel in recent weeks. If that carries through,
Speaker 7: not just send video, but we have Dale and network
Speaker 7: Applianes and Upure storage or report next week as well.
Speaker 4: Okay, I love how you're going bottom up here, Allison.
Speaker 4: Does any conversation around the dinner table or conversation at
Speaker 4: big conferences that you're going to at the moment end
Speaker 4: up with people saying, boy, your industry is just sucking
Speaker 4: up all the oxygen but also all the passive money.
Speaker 4: And is there a worry about indexes having to come
Speaker 4: in and rebalance here in some.
Speaker 7: Way, I think we always come back to fundamental and
Speaker 7: there's always a focus on you know, will interest rates
Speaker 7: you know, result in this rotation into smaller caps, is
Speaker 7: they're necessarily going to be bread And I think we
Speaker 7: look back if you look back even to nineteen ninety
Speaker 7: when you see you know, trillion dollar companies, the pace
Speaker 7: at which they've reached two trillion has been faster and
Speaker 7: more likely than companies at one hundred billion going to
Speaker 7: two hundred billions. So technology always tends to be quite
Speaker 7: size agnostic, and those large cap winners, when they achieve
Speaker 7: scale and a key competitive advantages, can continue to grow
Speaker 7: on that in spite of the interest rate environment through
Speaker 7: rising and falling rates. So we're quite agnostic about the
Speaker 7: size of companies, and you know the indexes, you know
Speaker 7: just now there are winners and losers in those large
Speaker 7: cap names. When you look back to prior cycles, not
Speaker 7: all of the past leaders become the leaders in the
Speaker 7: next cycle. So we think it's a great time to
Speaker 7: be an active investor and actually choose which of those
Speaker 7: companies are going to lead in this next week.
Speaker 4: So does Inveria just say the main company that benefits
Speaker 4: from a picks and shovel perspective, Do others win and indeed,
Speaker 4: when does the investment coming from the hypher scale is
Speaker 4: payoff for them too?
Speaker 7: Yeah, I mean I think, you know, for Nvidia, we
Speaker 7: had many of the same questions about Apple during the
Speaker 7: mobile era. Could Apple continue to win? And we do
Speaker 7: think that the majority of the value in parallel processing
Speaker 7: is accruing to in Nvidia, but that is the majority
Speaker 7: of it and not all. And we will through time,
Speaker 7: just as we've seen previously, see a broadening out of
Speaker 7: beneficiaries and on that return on investment spend on AI.
Speaker 7: You know, just as recently as it a few days ago,
Speaker 7: we held Walmart actually talk about the huge benefits to
Speaker 7: their product catalog being able to you know, take eight
Speaker 7: hundred and fifty million pieces of data that would have
Speaker 7: taken them a hundred times ahead count before, so real
Speaker 7: productivity gains that is coming from that AI spend. We've
Speaker 7: heard Andy Jazz's blogged today talking similarly about the number
Speaker 7: of developers that they can save with faster coding. So
Speaker 7: we think that will continue to encourage spend and that
Speaker 7: broadening of spend not just to the hyperscalers, but eventually
Speaker 7: to enterprises as well.
Speaker 5: To that point, Jackie and the team in New York,
Speaker 5: let's bring back that chart you had a second ago,
Speaker 5: some of the megacaps and their performance in the session.
Speaker 5: Because Alison, in your biggest fund these are all names
Speaker 5: you hold Microsoft, Amazon, Alphabet and Meta not in that
Speaker 5: ranking or order in terms of allocation. When all is
Speaker 5: said and done August twenty ninth, what would need to
Speaker 5: happen within Video's earnings for you to rethink your allocation
Speaker 5: to each of those names going forward?
Speaker 7: You know, I think even if you look back at
Speaker 7: last year, we don't react just to one quarter of
Speaker 7: earnings because a lot of possessions and come into that.
Speaker 7: But we think we've already seen evidence from all of
Speaker 7: the reports of those companies that you just saw that
Speaker 7: they are committed to continuing to spend where they see
Speaker 7: a return, and we think in Video's results will just
Speaker 7: continue to show that they are seeing strong visibility and
Speaker 7: seeing that broad and so, you know, we don't really
Speaker 7: see that as being an event from Nvidia that's going
Speaker 7: to materially change your view on any of those megacaps.
Speaker 5: Allison, is there anything that excites you outside of the
Speaker 5: US listed megacat tech names anywhere else in the world.
Speaker 7: Yeah, we see lots of exciting new companies. Particularly we
Speaker 7: see some you know, exciting emerging technology leaders in India.
Speaker 7: We also see, you know, through the US market, there
Speaker 7: are several areas that are just emerging in terms of
Speaker 7: the productivity gains that they can be had from artificial
Speaker 7: intelligence that are being underappreciated even in some of the
Speaker 7: contract manufacturers, where we see trends to what's still towards
Speaker 7: de globalization, towards focus on you know, higher standards and
Speaker 7: supply chains, that some of the this AI spent is
Speaker 7: actually trickled down to some of the companies that will
Speaker 7: actually have to manufacture. And this not just TSMC for Nvidia,
Speaker 7: but the servers, the storage that we'll have that will
Speaker 7: be made for many of these hyper scalers. We think
Speaker 7: you'll start to see that accrue to some some different
Speaker 7: names much further down the market CAPCR.
Speaker 4: Alison, that's really interesting. But again we're sort of talking
Speaker 4: about the infrastructure layer. Where will the money go from
Speaker 4: the application layer? At some point do you.
Speaker 7: Think, well, it just takes time and we've seen that before,
Speaker 7: you know, when we had the mobile era, you know,
Speaker 7: between when Apple launched its iPhone and two thousand and
Speaker 7: eight and you actually had the IPO of Uber. You know,
Speaker 7: over ten years of developing the app store, develop applications,
Speaker 7: and you know, we do tend to see and this
Speaker 7: is followed a very similar pattern for AI. You tend
Speaker 7: to see advertising benefit first, and then we see e commerce.
Speaker 7: We're hearing that from Walmart, and then you start to
Speaker 7: see enterprise software, some productivity gains, and then eventually that
Speaker 7: filters into other new applications, many of which we won't
Speaker 7: have thought of first. But this happens over multiple years,
Speaker 7: you know, in technology proper waves rather than just type cycles.
Speaker 7: These take you know, five to seven years to play out.
Speaker 7: So investors shouldn't necessarily look and think that investments have
Speaker 7: to be in those applications today because many of those
Speaker 7: still have to emerge as we start to see you know,
Speaker 7: the interface for AI for consumers still involved somewhat over
Speaker 7: the next few years.
Speaker 4: Alison is always so great to have you on the show.
Speaker 4: Thank you for joining us, Happy weekend. Thank you in Edinburgh.
Speaker 4: Alison water portflio manager at Jannis Henderson Investors, Global Technology
Speaker 4: leaders Sstainable Future Technology funds any morehead stick with us
Speaker 4: the bluebot technology.
Speaker 5: Okay, it's time for talking tech and first up. Ali
Speaker 5: Barber shareholders have approved a plan to upgrade its Hong
Speaker 5: Kong listing to primary status, a move that's expected to
Speaker 5: attract billions of dollars of investment from mainland China. This
Speaker 5: is shares of the online retailer have trailed key rivals
Speaker 5: like ten Cent. The change goes into effect August twenty
Speaker 5: eighth plus Uber is set to start offering its self
Speaker 5: driving Cruise vehicles to customers beginning next year. The partnership
Speaker 5: comes as Cruise, which is owned by General Motors, has
Speaker 5: been trying to regain traction after losing ground and grounding
Speaker 5: its fleet last year following the mishandling of a collision
Speaker 5: with a pedestrian, and bank capitals forging ahead with revived
Speaker 5: plans for an IPO of chip maker Kayosia Holdings that
Speaker 5: can raise five hundred million. That's according to Bloomberg's sources.
Speaker 5: Bain said to be working with investment banks for the
Speaker 5: IPO kickoff that could begin in the coming weeks.
Speaker 4: I will make sure let me leave the world into
Speaker 4: the future.
Speaker 8: On space and artificial intelligence, that America, not China, wins
Speaker 8: the competition for the twenty first century, and that we strengthen,
Speaker 8: not abdicate our global leadership.
Speaker 4: Vice President Harris accepting the Democratic nomination for president last night.
Speaker 4: Bloomberg's Amory Hodden is on the ground in Chicago where
Speaker 4: the DNC is now wrapped up, and Amory, boy, it
Speaker 4: was an important speech. I have a feeling you might
Speaker 4: be a little tired after yesterday.
Speaker 9: Absolutely a very important speech and historic speech for Vice
Speaker 9: President Kamala Harris as she accepts the Democratic National Convention,
Speaker 9: she accepts the nomination to be the top of the ticket.
Speaker 9: We have to say, and cannot overstate this, what a
Speaker 9: one pint eighty we are standing here today than we
Speaker 9: were just a month ago. A tremendous amount of energy
Speaker 9: now has been infused into this campaign and now comes
Speaker 9: potentially the hard part. We heard from the Vice president
Speaker 9: last night. She talked broadly, a lot about issues, whether
Speaker 9: it was the economy, foreign policy, reproductive rights, really cherry
Speaker 9: picking part of the Biden plan that she was part of,
Speaker 9: and now she's going to potentially have to go into
Speaker 9: details of those policies. I spoke to Tobin Marcus this
Speaker 9: morning of Wolf Research, and he said that this campaign
Speaker 9: is using strategic ambiguity. What they want to basically connect
Speaker 9: with swing state voters, using populist rhetoric, but not having
Speaker 9: to go into the details of those policy proposals. They
Speaker 9: have about seventy four days now to get that job done.
Speaker 9: Will they continue to try to potentially put a little
Speaker 9: bit bit of a gap between them and the actual
Speaker 9: details of the policy and just continuously try to talk
Speaker 9: broadly about the issues. That's going to become much harder
Speaker 9: come September tenth, when you have Kamala Harris facing off
Speaker 9: Donald Trump in their first.
Speaker 5: Debate, Bloomberg's Emory horder and in Chicago, thank you very much, okay.
Speaker 5: Open Ai is opposing a state bill here in California
Speaker 5: that would place new safety requirements on AI companies, like
Speaker 5: a fail safe shutdown for AI systems or compliance disclosions.
Speaker 5: The startup joins a long list of academic, tech industry
Speaker 5: leaders and other politicians who argue the measures could stifle innovation.
Speaker 5: The author of bill SB one oh four seven, California
Speaker 5: State Senator Scott Wiener, joins us now in San Francisco,
Speaker 5: along with Bloomberg, Sharene Gafari, who actually broke the story
Speaker 5: that open AI had outlined its concerns in a letter
Speaker 5: to you State Senator Wiena. So let's start with this.
Speaker 5: Open ai is based in San Francisco, California. It is
Speaker 5: probably the world's leading AI name or startup, and they
Speaker 5: think that federal legislation is a better path than state.
Speaker 5: Your reaction to that.
Speaker 2: Well, I will start by saying that another AI lab
Speaker 2: in San Francisco, Anthropic, which currently has the largest model
Speaker 2: in the world, issued a letter yesterday stating that on
Speaker 2: balance SP ten forty seven is good and that it
Speaker 2: is implementable, and that Congress is unlikely to add you're
Speaker 2: talking about entropic out. I'm sorry that I'd say the name.
Speaker 2: Anthropic came out and said that I'm balanced, the bill
Speaker 2: is good and that it's implementable, and that Congress is
Speaker 2: unlikely to act. And so I have a lot of
Speaker 2: respect for open AI. But just to be clear, the
Speaker 2: open AI letter does not actually criticize any provision of
Speaker 2: the bill. It does not criticize anything in the bill.
Speaker 2: All it says is that this should be handled at
Speaker 2: the federal level. And to be clear, I agree it
Speaker 2: should be handled at the federal level. But here we
Speaker 2: are in twenty twenty four and Congress still has not
Speaker 2: passed a data privacy law, has done nothing around social
Speaker 2: media other than banning TikTok, has not codified net neutrality.
Speaker 2: Congress has a very poor record in terms of regulating
Speaker 2: the tech sector, and I don't see that changing, and
Speaker 2: so we California should lead.
Speaker 3: Do you think that we should trust There's been a
Speaker 3: long list of tech companies, vcs, academics who have criticized
Speaker 3: this bill. But do you think that we should be
Speaker 3: trusting some of these voices who are against it? Are
Speaker 3: there other motivations that you think could be at play here?
Speaker 2: So to be clear, there are folks who are criticizing
Speaker 2: the bill in good faith and people I respect the lot.
Speaker 2: There are others who are making very inaccurate and extreme
Speaker 2: and exaggerated attacks on this bill. This is a very
Speaker 2: light touch, smart piece of regulation around safety, regulating only
Speaker 2: the largest model to just ask these developers to perform
Speaker 2: safety testing so that we can reduce the risk of
Speaker 2: things like shutting down the electric grid, or attacking the
Speaker 2: banking system, or creating a chemical or biological weapon. And
Speaker 2: some of the leading minds in AI, like Yoshua Benzio
Speaker 2: and Jeff Hinton formerly from Google, Lawrence Lessig, and Stuart
Speaker 2: Russell are all supporting this bill, in addition to a
Speaker 2: significant list of startups who are saying that this is
Speaker 2: a good idea. So, yes, there are some people in
Speaker 2: good faith who have criticisms of the bill, and we
Speaker 2: have been working with them to get their feedback. There
Speaker 2: are others who are just opposed to any and all
Speaker 2: regulation of tech, and I just don't agree with that.
Speaker 3: And I want to talk about whistleblower protections, which is
Speaker 3: also a part of the bill, and it's received less attention.
Speaker 3: Today two former open ai employees came out and supported
Speaker 3: the bill, and they have advocated for more whistleblower protections.
Speaker 3: Why is that a part of the bill? Why is
Speaker 3: it important that people who work for these AI companies
Speaker 3: you think should be able to speak out on safety.
Speaker 2: So I am, just to be clear, a huge fan
Speaker 2: of AI. I think AI has so much potential to
Speaker 2: make the world a better place to solve what we
Speaker 2: have viewed as unsolvable problems, whether it's around various health
Speaker 2: conditions or climate change. And so I'm a fan but
Speaker 2: as with any extremely powerful technology, there are risks, and
Speaker 2: we should try to get ahead of those risks. And
Speaker 2: we know how to get ahead of those risks, not
Speaker 2: to eliminate risk, but to reduce the risk of something
Speaker 2: catastrophic happening. And so when you have people who are
Speaker 2: working in AI labs building some of the most powerful
Speaker 2: technology in the history of the world, they should be
Speaker 2: able to speak up and have legal protections to speak
Speaker 2: up if they see something inappropriate or dangerous happening.
Speaker 4: Are you yourself, Senator, can I ask nervous, even scared
Speaker 4: around of special intelligence having done this amount of research.
Speaker 2: I wouldn't. I wouldn't say scared, Like I am optimistic
Speaker 2: that AI can help us solve some of the hardest
Speaker 2: problems facing us. At the same time, it is it
Speaker 2: would be irresponsible to just allow it to spiral and
Speaker 2: not to in any way even think about the safety issues.
Speaker 2: And that's all this bill does. It requires safety protocols,
Speaker 2: a safety evaluation, the ability to shut down a model
Speaker 2: that is in your possession. These are all extremely reasonable things.
Speaker 2: And I want to be clear that every single large
Speaker 2: AI lab, including open AI and Meta and Google, they
Speaker 2: have already committed repeatedly and publicly to perform these safety evaluations.
Speaker 2: We're just asking them to do it in an obligatory way,
Speaker 2: and it should cause us all concern. Whenever you have
Speaker 2: an industry that says, we promise we'll do this, but
Speaker 2: don't require us to do it, just trust us. Voluntary
Speaker 2: commit ments in industry have a history of going awry.
Speaker 4: Senator, you have listened and listened hard to some of
Speaker 4: the concerns and made changes. What seems to be the
Speaker 4: ongoing narrative from academia and indeed smaller companies is this
Speaker 4: open source narrative and the way in which perhaps LAMA
Speaker 4: would in any way suddenly become less bit available and
Speaker 4: less innovative. How can you change to enable smaller companies
Speaker 4: an open source still to thrive under this regulation.
Speaker 2: Well, I'm a huge fan of open source, including in
Speaker 2: the AI space, and so many startups in particular. And
Speaker 2: by the way, startups are not covered by this bill.
Speaker 2: It applies only to labs that are spending more than
Speaker 2: one hundred million dollars to train their models. But AI,
Speaker 2: excuse me, open source AI plays an incredibly important role
Speaker 2: and we have worked intensively with GitHub and other open
Speaker 2: source advocates and made significant changes to the bill to
Speaker 2: make very very clear that this bill is not about
Speaker 2: being negative with open source. And yes, a lot of
Speaker 2: people rely on LAMA. But I know I sound like
Speaker 2: a broken record, but I'll say it again. META is
Speaker 2: one of the labs that has repeatedly committed to perform
Speaker 2: safety evaluations, and so that's what we have put into
Speaker 2: this bill. And so when you make that commitment, Meta
Speaker 2: made that commitment clearly believing that it was not going
Speaker 2: to undermine their ability to open source LAMA Missuena.
Speaker 5: When Sharen posted on social media, you're coming onto the program,
Speaker 5: inevitably we got a number of questions from people all
Speaker 5: over the state. One of them was Professor Anima ann Kumar,
Speaker 5: actually previously an employee of Nvidia, no longer is as
Speaker 5: an academic, and it's on academia she wants to focus.
Speaker 5: She basically says in this question to you that you
Speaker 5: are pretty fixated on billionaires opposing the bill, and she asked,
Speaker 5: you know how much you take into account the input
Speaker 5: of academia. Also note that she is not alone in
Speaker 5: that a number of academics came forward when we said
Speaker 5: you joined the program.
Speaker 2: Yeah, I saw that tweet, and I have no idea
Speaker 2: what she's talking about. At no point have I ever
Speaker 2: said that it's only billionaires who have concerns about this bill.
Speaker 2: I also want to say that there are large venture
Speaker 2: capital firms, particularly in recent Horowitz, that have taken the
Speaker 2: lead and spreading at times, and Andresent Horowitz has done
Speaker 2: this misinformation about the bill. But with that said, we
Speaker 2: know that there are academics who have expressed concern about
Speaker 2: the open source aspect, and so I have met with
Speaker 2: various of those academics. We have made significant amendments to
Speaker 2: the bill to address concerns from the open source community,
Speaker 2: and there are significant academics like Stuart Russell and Yosho Benjio,
Speaker 2: Jeffrey Hidden, etc. Who support the bill.
Speaker 3: One of your main defenses of this bill has been
Speaker 3: that there's already laws right toort law you said that
Speaker 3: could find companies liable if they do cause mass harm
Speaker 3: through AI people. Also, as you mentioned, said, there's these
Speaker 3: voluntary commitments. So my question is, if those already exist,
Speaker 3: why do you think we need this law. Companies can
Speaker 3: already get in trouble if they cause harm.
Speaker 2: Well, and that's a really important point because One of
Speaker 2: the inaccurate representations that we've seen around this bill is
Speaker 2: implying or even stating that this bill creates liability for
Speaker 2: AI developers when they had no liability before. Currently today,
Speaker 2: an AI developer, if you let's say open source and
Speaker 2: model and someone uses that model to shut down the
Speaker 2: electro grid, you can be sued today. And so our
Speaker 2: bill allows the Attorney General to get involved. But what
Speaker 2: the bill does is it creates a very specific obligation,
Speaker 2: not to create liability, but to tell developers, this is
Speaker 2: what we expect you to do. You need to test
Speaker 2: your model, you need to have a safety protocol, you
Speaker 2: need to be able to shut down the model in
Speaker 2: a very very specific way. We also provide the Attorney
Speaker 2: General with a very narrow ability to intervene before a
Speaker 2: harm occurs, to avoid a catastrophic harm in extreme circumstances.
Speaker 2: So this bill complements existing law.
Speaker 5: SP ten seven is a state California state bill, And
Speaker 5: ultimately this might come down to Governor Newsom. Your expectation
Speaker 5: of what the governor may or may not do in
Speaker 5: a veto.
Speaker 2: Or a signature or a signature, I you know the
Speaker 2: governor has not stated a position on this bill. I
Speaker 2: have learned the hard way over years not to assume
Speaker 2: whether the governor will sign her veto a bill. He
Speaker 2: and Governor Brown have surprised me in both directions in
Speaker 2: the past. You know, the governor is a strong supporter
Speaker 2: of tech innovation, as am I. The Governor has also
Speaker 2: made clear that it comes to AI, that regulation is
Speaker 2: appropriate and we have to strike the right balance. So
Speaker 2: I hope that the governor will have an open mind,
Speaker 2: and I believe he will have an open mind about
Speaker 2: this bill, and we will continue to make the case.
Speaker 2: This bill has been getting very very broad support, particularly
Speaker 2: among Democrats and the legislature.
Speaker 5: Your constituency is very big if you include San Francisco
Speaker 5: and the concentration of AI companies here. Who else will
Speaker 5: you meet with to try and convince of this bill.
Speaker 2: We have met with I mean, have you not met
Speaker 2: with We've met with anyone who will meet with us,
Speaker 2: And we have met with, you know, with folks from startups,
Speaker 2: from large tech companies, from folks from academia, just frontline
Speaker 2: tech workers. And by the way, when you pull this bill,
Speaker 2: it pulls off the charts with the public. It pulls
Speaker 2: higher among tech workers than it does among the general public.
Speaker 2: And it was frontline fruits tech workers who came to
Speaker 2: me originally with some of the ideas in this fill
Speaker 2: because they these are folks working in the AI space
Speaker 2: who had concerns about safety.
Speaker 5: Sence to Scott Weena of California Bloombag Shrine Gafari who
Speaker 5: broke the original story, thank you both for being here
Speaker 5: in studio in San Francisco, Carolina, on.
Speaker 4: A great conversation. Let's get back to these markets very
Speaker 4: briefly ed because we are pushing higher. We have got
Speaker 4: a power push going on. We've basically heard from Jackson
Speaker 4: Hole and he says the time is ripe for a
Speaker 4: change in policy. I rates are going to go lower.
Speaker 4: What happens the NAZAC jumb's by one point three percent.
Speaker 4: We are up and up for the week as well,
Speaker 4: through straight weeks of gains. Tenure yields with down four
Speaker 4: five basis points. Let's call it it's boring costs four
Speaker 4: and I'm also looking at Crypto getting a bid at
Speaker 4: the moment risk assets on we're at one point six percent.
Speaker 4: Move into some of the individual movers though, because of
Speaker 4: course all eyes on in video August eighth, we come
Speaker 4: up with what is going to be a macro move,
Speaker 4: that is a micro set of earnings from in video.
Speaker 4: We're up more than three point eight percent, big leader
Speaker 4: in terms of points. Therefore, across the Nazak one hundred,
Speaker 4: I'm looking at Workday, it's up eleven. The best performer
Speaker 4: from a percentage point is view is Earning saying, look,
Speaker 4: our margins are going to improve in the longer term.
Speaker 4: Not so far into it. It's company saying, look, actually,
Speaker 4: in the longer term, we're not going to be as optimistic,
Speaker 4: even though the short term the quarter just posted it
Speaker 4: beat across the board with down seven percent ed.
Speaker 5: Right coming up on Bloomberg Technology, Amazon Web Services and
Speaker 5: accent you're announcing a joint platform that they say will
Speaker 5: help small developers scale responsible AI. That's next. This is
Speaker 5: Bloomberg Technology.
Speaker 4: Now I've just had a debate about AI regulation. Meanwhile,
Speaker 4: though Amazon Web Services and Accenture, I've just announced a
Speaker 4: partnership that they say will help AI developers scale their
Speaker 4: projects responsibly. He'd tell us a little bit more about
Speaker 4: the platform and about responsible AAI more broadly, as d
Speaker 4: win Responsible AI lead at AWS. Basically, you are putting
Speaker 4: into practice ahead of regularly in many cases, how companies
Speaker 4: can navigate. We're just having a conversation about SB ten
Speaker 4: forty seven. How do you guide growth at this moment
Speaker 4: dea responsibly without laws in place?
Speaker 10: Well, thank you for having me. Let me just first
Speaker 10: start saying that as as well as I wanted to
Speaker 10: start off by saying that responsible as a business imperative.
Speaker 10: So when you talk about the opportunity for us to
Speaker 10: scale the use of AI and organizations thinking about the
Speaker 10: ways in which they want to build leverage and AI, well,
Speaker 10: this platform, the Accenture Responsible AI platform powered by AWS,
Speaker 10: is a means for them to be able to do it.
Speaker 10: When we think about responsible AI, we think about that
Speaker 10: as a practice of designing, building, and deploying AI safely
Speaker 10: and inclusively being able to mitigate the risk and unintended impact.
Speaker 10: And this platform is providing them the visibility the control
Speaker 10: ways to assess their risk, be able to mitigate and
Speaker 10: prepare mitigation strategies, and have that fieldsibility across the organization
Speaker 10: so that they can ensure that they have the right
Speaker 10: kind of guard rails as well as safeguards in the systems,
Speaker 10: and then the technology.
Speaker 5: They build does AWS have a position on California's SB
Speaker 5: ten forty seven.
Speaker 10: I can't speak to that specific bill in California, but
Speaker 10: what I can say is that we're committed to continuing
Speaker 10: to collaborate with policymakers and the industry researchers, as well
Speaker 10: as academia and the community to advance the responsible use
Speaker 10: of AI. As one of the world's leading developers and
Speaker 10: deployers of AI tools and services, Amazon supports flastering, safe,
Speaker 10: responsible and effective development of AI technology, and we're dedicated
Speaker 10: to driving innovation on behalf of our customers that give
Speaker 10: them the capability to do so as well.
Speaker 4: And dear, we just heard yesterday Vice President Kamala Harris
Speaker 4: accepting the nomination to run for president and saying she
Speaker 4: wants to support AI being one here in the United States.
Speaker 4: How do you see your clients or customers that you
Speaker 4: serve worrying or not about growth in AI?
Speaker 10: Well, I'm not sure that I would say it's a worry.
Speaker 10: We've been seeing over the course of the last couple
Speaker 10: of years great excitement in the technology and in particular
Speaker 10: with generative AI, and we are fielding more requests than
Speaker 10: we have in the past about ways in which organizations
Speaker 10: can do that responsibly. So I believe we have momentum.
Speaker 10: Just as I mentioned at the beginning that I believe
Speaker 10: that responsible AI is a business imperative, and just by
Speaker 10: this share number and the increase in interest, conversation discourse
Speaker 10: around responsible AI says that organizations, as they think about
Speaker 10: adopting AI, are also thinking about the ways in which
Speaker 10: they can do that with the safeguards and guardrails to
Speaker 10: ensure that they're developing in ways to deliver safe systems.
Speaker 5: Dear Win response, the way I lead at AWS, Thank
Speaker 5: you very much.
Speaker 4: Now, after days and searching through wreckage of a sunken
Speaker 4: yacht off the coast of Sicily, authorities have confirmed the
Speaker 4: death of British tech tycoon Mike lynch Rum Egzine Dan
Speaker 4: joins us for more to discuss. And now many will
Speaker 4: understand the way in which he passed, but many are
Speaker 4: trying to grapple with what he meant for a technology
Speaker 4: industry which at one point he was deemed the Bill
Speaker 4: Gates of Britain. Tell us about his impact, then that's.
Speaker 1: Right, And you know, before he passed he was still
Speaker 1: hailed as one of the most successful tech entrepreneurs that
Speaker 1: the UK had ever seen. He founded and ran one
Speaker 1: of the largest British technology companies to ever have been
Speaker 1: taken over in an M and A deal, and that
Speaker 1: really propelled his name and his status not just the
Speaker 1: UK but across Europe more broadly. It was quite the
Speaker 1: blow to his reputation and his ego when HP, which
Speaker 1: bought his company Autonomy, turned around and ended up accusing
Speaker 1: him of inflating the success of the business after taking
Speaker 1: it over, and he had spent years before his passing
Speaker 1: working to clear his name and be acquitted of charges.
Speaker 4: On that front. He but thirty seconds Linn. He made
Speaker 4: an impact in terms of Cambridge and the Cambridge cluster.
Speaker 9: He did.
Speaker 1: He was extremely influential and he actually, in the aftermath
Speaker 1: of selling his company Autonomy, had ended up investing a
Speaker 1: lot of that money that he made as part of
Speaker 1: that deal into a ton of other technology startups, a
Speaker 1: lot of them which are now run by former Autonomy executives.
Speaker 1: And there was really an outpouring of condolences and an
Speaker 1: outpouring of grief from those former Aucademy executives working guided
Speaker 1: by him.
Speaker 4: Then, durn we thank you, Mike linch An academic investor
Speaker 4: and entrepreneur