Speaker 1: From the heart where innovation, money and power Collie in
Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed Ludlove.
Speaker 2: I'm Caroline Heine blumgg's world headquarters in New York. Ed Ludlow,
Speaker 2: He's off today. This is Bloomberg Technology. Coming up, we
Speaker 2: will go live to the Manhattan Federal Courthouse where the
Speaker 2: opening arguments are set to begin for Sam Mcmanfreed's historic
Speaker 2: Ford trial. Will have the latest for us. We'll talk
Speaker 2: investing in generative AI with a key hedge fund investor.
Speaker 2: And of course we're going to go live to Alphabet's
Speaker 2: Made by Google event as the company takes on Apple
Speaker 2: with a new pixel that's well more like an iPhone.
Speaker 2: But let's go back to the crypto story today. Because
Speaker 2: it is a historic moment. A jury has been selected.
Speaker 2: Opening arguments are set to start today for Sam batman
Speaker 2: Fried's trial, where he's accused of orchestrating one of the
Speaker 2: biggest financial frauds in American history. Joining us now from
Speaker 2: outside that very courthouse with the latest new Oceanani BASEK
Speaker 2: and we'll get us up to speed with who's going
Speaker 2: to be listening in on all these oral arguments.
Speaker 3: Yeah, it's a good point.
Speaker 4: We are just getting an idea of what the jury
Speaker 4: will look like. Here you're looking at a nurse, a
Speaker 4: physician assistant, a social worker who is currently unemployed and
Speaker 4: has previously served on a jury before. Who are looking
Speaker 4: also at, you know, folks who are retired corrections officers,
Speaker 4: other high school graduates. Advertise, you have a mix of
Speaker 4: people here. You have a number of jurors here that
Speaker 4: again have been very heavily questioned here over the last
Speaker 4: twenty four hours Caroline about whether they have preconceived notions
Speaker 4: about cryptocurrencies and other parts of Sam Bankman Fried's world, like,
Speaker 4: for example, effective altruism. That's another thing that the jury
Speaker 4: had asked to make sure that there weren't going to
Speaker 4: be negative vibes coming from that jury headed into this
Speaker 4: six week trial with very serious criminal counts being faced
Speaker 4: by Sam Bankman Freed. Now, as I stand outside the courthouse,
Speaker 4: the jury, as we say, has been selected. We know
Speaker 4: generally who these people are, what they do for a living,
Speaker 4: how they have been questioned. The opening arguments are starting
Speaker 4: imminently as well. We will hear from the prosecution really
Speaker 4: for the first time to lay out their argument, and
Speaker 4: more importantly, we don't know how sam Bankman Freed prepares
Speaker 4: to defend himself against these charges and will hear from
Speaker 4: them as well in a series of thirty to forty
Speaker 4: minute remarks from both sides.
Speaker 2: Of course, thirty one year old pleading not guilty to
Speaker 2: Watford conspiracy to commit Wildford's securities fraud. The list goes
Speaker 2: on Shanali, it's quite a changed samm Munfried who entered
Speaker 2: that courtroom, much slimmer and change well, certainly from a
Speaker 2: half perspective, but how do we think his demeanor has changed.
Speaker 4: In a lot of ways. It's to your point, yere
Speaker 4: A lot of people have been talking about the way
Speaker 4: his appearance has changed. He looks noticeably thinner, according to
Speaker 4: the Wall Street Journal. He has also been dressing a
Speaker 4: lot differently, buying suits from Macy's at a forty percent discount. Remember,
Speaker 4: he was known for that T shirt and shorts and
Speaker 4: even flip flops in front of even world dignitaries in
Speaker 4: the past, but now he has suited up. Indeed, as
Speaker 4: he enters court himself, we'll see. We don't know that
Speaker 4: he will necessarily testify. He's not going only expected to
Speaker 4: testify and what tone he would take if he would,
Speaker 4: but again much more silent. We are not used to
Speaker 4: Sam megmin Fried being so silent leading up to these charges.
Speaker 4: You remember just how much he had taken to the
Speaker 4: media to describe what had happened at FTX, and ever
Speaker 4: since then it's been nothing but silence.
Speaker 3: And so this will be a telling trial.
Speaker 4: Remember after those opening remarks, which will take about an
Speaker 4: hour or so here, we will also start to hear
Speaker 4: from witnesses and that will start to get very important
Speaker 4: as we know that number of his closest friends and
Speaker 4: colleagues over time are expected to testify in this trial.
Speaker 2: Important for the individuals, important for the industry. Liquidity in
Speaker 2: the digital asset market's still only half of what it
Speaker 2: was before the FTX collapse. Shanalo Bassak on the ground
Speaker 2: there for us all day. We thank you for it. Meanwhile,
Speaker 2: coming up, we're going to get the outlook well for
Speaker 2: what we're all now talking about. If it's not crypto,
Speaker 2: we're talking about AI investing and discuss why Apple CEO
Speaker 2: Tim Cook just decided to sell five hundred thousand shares
Speaker 2: of the iPhone maker. Let's have a look on Apple
Speaker 2: stock of course. In fact, it seems to be timed
Speaker 2: along with the downgrade Key Bank. The analyst over there
Speaker 2: saying it's high valuation, weak sales outlook. The analyst really
Speaker 2: worrying about the stock's valuation is a large premium to
Speaker 2: the naws that they say us sales. They'd like me
Speaker 2: to struggle will have more ahead, still managing to tread
Speaker 2: water up three ten percent on a day where the
Speaker 2: nasack is up more than a percentage point. This is
Speaker 2: a BlueBag technology time now for talking tech. First up,
Speaker 2: Apple CEO Tim Cook selling shares of the iPhone maker.
Speaker 2: In his biggest sale and more than two years, Cook
Speaker 2: sold five hundred and eleven thousand shares that's worth about
Speaker 2: forty one million dollars after taxes. It's all according to
Speaker 2: a filing with the SEC. So all comes after Cook
Speaker 2: took a rare pay cut about forty percent to just
Speaker 2: forty nine million for twenty twenty three. Meanwhile, Intel is
Speaker 2: planning to make its ALTERA unit into a standalone business
Speaker 2: and take a public The Programmable Chip Division will become
Speaker 2: an independent entity starting January first. It's all part of
Speaker 2: the CEO pat Girl Singer's efforts to really try and
Speaker 2: ring more value from the semiconductor company. Meanwhile, let's turn
Speaker 2: out at Touch to AI because Masayoshi Son has a
Speaker 2: message for Japan. Adopt artificial intelligence or got left Behind?
Speaker 2: Was a soft bank founder's first public appearance in months
Speaker 2: at SoftBank World. It's an annual event for the tech
Speaker 2: investors domestic corporate clients. Now, the billionaire compared humans with
Speaker 2: that AI to goldfish just in a bowl to process
Speaker 2: information like language. So let's talk more about this AI euphoria,
Speaker 2: AI necessity and how to play it. James fishbacks with us.
Speaker 2: He's the founder and chief investment officer of Zoria Partners.
Speaker 2: It's global macro hedge fund PROJECSORI. Of course you are
Speaker 2: with macro investing over at green Light Capital, and James,
Speaker 2: wefel with your focus on all the ways in which
Speaker 2: you could get long AI. Is it about smaller companies
Speaker 2: bigger companies? How do you play this.
Speaker 5: Well, Carolyn, it's a real pleasure to be here. Let
Speaker 5: me say that to Marsh's point, my name is Fishback,
Speaker 5: so I am the goldfish in this equation. So I'm
Speaker 5: trying to figure that out. But I think the way
Speaker 5: to look at This is to look at some of
Speaker 5: the companies that have the best balance sheets, the best markets,
Speaker 5: and existing user workflows and ecosystems, and then monetize off
Speaker 5: of that. At the risk of sounding like Steve Jobs
Speaker 5: in January of two thousand and seven when you launched
Speaker 5: the iPhone, the types of companies you think you really
Speaker 5: want to look at in this environment are the hyper scalers,
Speaker 5: the ones that are providing the cloud computing infrastructure, the
Speaker 5: amplifiers of this technology that can then deploy it to
Speaker 5: existing users and devices. And the innovators, those who are
Speaker 5: either developing or are strategically partnering with those who are developing.
Speaker 5: And so, much like Steve Jobs said, these are not
Speaker 5: three separate companies. In many cases, there are actually one company.
Speaker 5: In several cases, Microsoft is one of them. I believe
Speaker 5: that Google and Amazon are others as well, and so
Speaker 5: it's a unique opportunity to own strong cash flow generative
Speaker 5: businesses that offer embedded optionality to capitalize on the AI boom.
Speaker 2: Interesting that it really seems to be being owned by
Speaker 2: the United States at this time, James, when you're thinking
Speaker 2: about what's happening with Microsoft's partnership with something like an
Speaker 2: open Ai. How do you see these sort of frenemies continuing.
Speaker 2: How do you see the companies striking these We just
Speaker 2: had Amazon of course taking a big stake and partnership
Speaker 2: as well with other key players in the space. How
Speaker 2: does that accelerate? Is that just the way in which
Speaker 2: you want to see deals being done?
Speaker 5: That's exactly what you want to see. You want to
Speaker 5: see key innovators of this technology, like Anthropic, like open Ai,
Speaker 5: have strategic partners in Amazon and in Microsoft respectively to
Speaker 5: then deploy that technology. Look at Microsoft today. Their three
Speaker 5: sixty five copilot product is now being opened accessed to
Speaker 5: one hundred and sixty million enterprise users who can now
Speaker 5: use it to expedite workflows in Microsoft Word, in Excel,
Speaker 5: and in PowerPoint. And so you now take users who
Speaker 5: are already used to Microsoft Word, already used to the
Speaker 5: existing workflows that they have, and then you're super charging it.
Speaker 5: You know, if I wanted to go to a Fortune
Speaker 5: five hundred company and sell them phishback Ai and say
Speaker 5: it's the best worst word processor out there, I couldn't
Speaker 5: do that because I don't have those kind of relationships.
Speaker 5: Microsoft has a moat in this market. They have their relationships,
Speaker 5: they have the trust they're going to drive value for
Speaker 5: enterprise players and as a result, they can drive pricing
Speaker 5: power longer term.
Speaker 2: Do you think then there's a risk any of these
Speaker 2: really big and in many ways companies trying to fight
Speaker 2: the monopoly oligopoly name that keeps being thrown at them.
Speaker 2: Is there only risk they get displaced? I mean, in
Speaker 2: the same time as the dot com boom and bust,
Speaker 2: in the same way that we've seen some business models
Speaker 2: just eroded. Are all of them ahead of the curve
Speaker 2: or any of them at risk of losing their mantle?
Speaker 3: You're absolutely right.
Speaker 5: I think there's reason to be skeptical Caroline by what
Speaker 5: happened in early two thousand with the dot com bubble.
Speaker 5: But there's a couple key differences here. One is valuation.
Speaker 5: The peak valuation at the dot com bubble was fifty
Speaker 5: two times earnings for these average tech stocks. The average
Speaker 5: AI tech stock today at the top of the list
Speaker 5: has a pe of around twenty five times. And that
Speaker 5: simple comparison is to say nothing about the strong fundamental
Speaker 5: position these companies are in. As they said earlier, they
Speaker 5: are free cash flow generative, they have strong balance sheets,
Speaker 5: They have simple, predictable businesses. They don't need to rely
Speaker 5: on debt and equity markets, increasingly a debt market that's
Speaker 5: seeing rising interest rates. It seems like every single name
Speaker 5: day now to fund the aggressive R and D behind this.
Speaker 5: So I think they're doing all the right things Microsoft
Speaker 5: with open Ai, Amazon with anthropic, Google with deep Mind,
Speaker 5: and its own internal operations to then power this forward.
Speaker 5: And the thing that I'm most excited about is these
Speaker 5: companies already have billions of existing users and device ecosystems
Speaker 5: that they can deploy this new technology to pretty much overnight.
Speaker 5: So you don't have to make a lot of assumptions
Speaker 5: here to see how powerful and how impactful this technology
Speaker 5: can be, not just for the end user, but also
Speaker 5: for their fundamental share prices.
Speaker 2: And it's allowed the NASDAK to really reapin the rewards
Speaker 2: for this year. But September was really ugly, James, and
Speaker 2: September was ugly because of the macro picture, because of
Speaker 2: the warrior, what the Federal Reserve is going to do,
Speaker 2: how we tame inflation, a very strong jobs market. How
Speaker 2: do you think these big tech bets can withstand a
Speaker 2: higher for longer scenario.
Speaker 5: That's a great question, and there's no doubt about it.
Speaker 5: The macro picture over the past month has been challenging,
Speaker 5: to say the least. Look at what's happened to thirty
Speaker 5: year treasury yields in the US and the higher for
Speaker 5: longer hawkish narrative coming from the Federal Reserve. I think
Speaker 5: the key thing to note here is that the aiview
Speaker 5: is not a multi quarter view. It is a multi
Speaker 5: year view, and so if you look at some of
Speaker 5: these companies, they have the potential to compound. In the
Speaker 5: case of Microsoft, it's compounded at twenty five percent over
Speaker 5: the past decade year over year, and that's despite all
Speaker 5: the macro volatility both in the real economy and the
Speaker 5: financial system we've seen. Yet at the same time, it's
Speaker 5: important to look at what this opportunity presents long term.
Speaker 5: I think a key assumption Caroline in this space is
Speaker 5: that higher rates is actually negative for this type of
Speaker 5: narrative for big tech going higher, and I don't think
Speaker 5: that could be further from the truth. And here's why
Speaker 5: companies like Apple, who issued thirty year debt at a
Speaker 5: mid two percentage rate back in twenty twenty one, that
Speaker 5: have turned out debt in many cases for ten or
Speaker 5: fifteen teen years have strong balance sheets, are seeing higher rates,
Speaker 5: but are not actually seeing higher effective interest costs, one
Speaker 5: because their liabilities have been fixed. The large issuance in
Speaker 5: twenty twenty in twenty twenty one that was of course
Speaker 5: aided by quantitative vising at the FED and by their
Speaker 5: libit by their assets rather which are actually increasing in value,
Speaker 5: as in the case of Microsoft one hundred billion dollar
Speaker 5: balance sheet is compounding in line with Treasury rates at
Speaker 5: three to four percent.
Speaker 3: So I would push.
Speaker 5: Back against that narrative just a bit and view opportunities
Speaker 5: like this as an opportunity to actually get in some
Speaker 5: of these positions and develop a longer term view on
Speaker 5: where AI is going to be in three to five years.
Speaker 2: Really thoughtful. Thank you for laying that out for us.
Speaker 6: James Fishback of Azoria Partners, Well.
Speaker 2: We know that Alphabet's Google is be going head to
Speaker 2: head with Apple in many ways for years when it
Speaker 2: comes to hardware, but really it feels head on right now.
Speaker 2: The new Pixel phones have you seen them? They're kind
Speaker 2: of more iPhone like than ever before, particularly when you're
Speaker 2: looking at the price point. Bloomberg's chief correspondent Mark German,
Speaker 2: who has all the insight track around these products announcements,
Speaker 2: give us your thoughts. What did you make of some
Speaker 2: of the updates the camera, the way in which they
Speaker 2: look and feel.
Speaker 7: Yeah, I mean I think Google is continuing to push
Speaker 7: out pretty impressive AI driven products. The new Pixel phones
Speaker 7: the Pixel eight Pixel eight pro very impressive new camera, features,
Speaker 7: new G three tensor processors. This is their third generation
Speaker 7: custom processor. A few upgrades here that make it a
Speaker 7: little bit more like an iPhone. Surprisingly, the facial recognition
Speaker 7: on the previous Pixel phones, at least the last couple generations,
Speaker 7: they weren't graded security wise high enough to be processed
Speaker 7: for payments using your banking apps. Now they've up the
Speaker 7: security on that, as you know, FACESIDD on the iPhone
Speaker 7: since twenty seventeen has had that.
Speaker 3: Level of security.
Speaker 7: The design of the Pixel phones continued to be some
Speaker 7: of the best smartphone designs on the market. It but
Speaker 7: the trend continues here, right. Google is pushing out some
Speaker 7: really nice hardware, great software integrations, probably some of the
Speaker 7: best Android phones you can get globally, but that really
Speaker 7: hasn't translated into really strong amounts of market share, right,
Speaker 7: So that's the problem Google will continue to grapple with
Speaker 7: at least for the foreseeable future, making really good phones
Speaker 7: and really good hardware products that are just not selling
Speaker 7: as well as their competitors from Samsung and Apple. And
Speaker 7: that's what Google now.
Speaker 3: Has to figure out.
Speaker 7: They have the right hardware, how do they get them
Speaker 7: to sell in those bigger quantities?
Speaker 2: Well point, we think Google has about three percent of
Speaker 2: the smartphone shipments during the second quarter according to Counterpoint Research.
Speaker 2: Great and asks some chief correspondent Mark Gum and we
Speaker 2: thank you as always for running us through well what
Speaker 2: the products like? And he liked it. So let's talk
Speaker 2: a little bit more about what's in this product and
Speaker 2: how they do take on market share. Shanazzach is with
Speaker 2: us judge on product management Full Pixel at Google, fresh
Speaker 2: off the stage where you presented, what are these big
Speaker 2: upgrades to the phones? And look, I've been agnostic for years.
Speaker 2: I had Pixels, had iPhones, and I'm interested as to
Speaker 2: whether you like or dislike the idea of becoming more
Speaker 2: like an iPhone.
Speaker 8: I wouldn't compare that because I think Pixel are the
Speaker 8: best phones or Google, especially bringing the hardware plus the software,
Speaker 8: plus the best of AI from Google into people's hands,
Speaker 8: and that's how we think about our phones. Of it's
Speaker 8: bringing the best of Google in people's hands.
Speaker 2: What about the best of AI? It does seem to
Speaker 2: be something people are now referencing far more within their
Speaker 2: product detail. I mean now it's because finding a consumer
Speaker 2: really understands it. They can touch it, feel it, use it.
Speaker 2: When they're using Bard for example, how will that be
Speaker 2: interwoven to make it that much easier product to use?
Speaker 8: So when Pixel started seven years ago, even at that time,
Speaker 8: AI was a core part for Pixel and we continue
Speaker 8: on that line, and as you saw in our announcement,
Speaker 8: we have AI or with our supported by ATTENDSLG three
Speaker 8: across the phone, including our integration of assistant with Bard
Speaker 8: that will be coming soon.
Speaker 2: It's interesting that, of course, you have pushed up the
Speaker 2: price point. What is it? I've owned fifteen pro now
Speaker 2: same as the Pixel eight pro nine hundred and ninety
Speaker 2: nine dollars. Is the consumer ready for that price point?
Speaker 2: I mean, how did you sort of test and feel
Speaker 2: that that was the right amount to be charging.
Speaker 8: There's a lot of testing we do. But as you
Speaker 8: can see in our phones, you've upgraded the hardware. We
Speaker 8: have a completely new camera system. We are also had
Speaker 8: a lot of software, and we're also supporting the phones
Speaker 8: for a longer period of time for seven years of
Speaker 8: OS support security feature jobs. So that's how we think
Speaker 8: about our phone.
Speaker 2: But it's interesting, therefore, isn't it that we're going to
Speaker 2: supporting them and for longer so people might not need
Speaker 2: to renew for longer. How do you start to inch
Speaker 2: away at this market share that is Smart pointed out,
Speaker 2: it's sort of surprisingly low considering the integration of software
Speaker 2: and hardware.
Speaker 8: So from Pixel and Google's perspective, we do want people
Speaker 8: to use their phone longest, and we see that people
Speaker 8: are using their phone longer, right, and so it's part
Speaker 8: of sustainability, so it's important for us, and so that
Speaker 8: support was natural for us to help our users support
Speaker 8: their phones for a longer period of time.
Speaker 2: Overall, when you're thinking as well about some of the
Speaker 2: not just sustainability but security that people want to be seeing,
Speaker 2: you have been up in the ante when it comes
Speaker 2: to facial recognition. Are people going to be frustrated that
Speaker 2: it took so long or what actually goes in too
Speaker 2: needing to ensure that you can qualify for those sorts
Speaker 2: of levels of security.
Speaker 8: In terms of the phone, our phones always were secure.
Speaker 8: We had our titan Ship and our phone security was
Speaker 8: supported for five years, so it's we are upping that
Speaker 8: to seven years. And yes, they are one of the
Speaker 8: most secure phones out there.
Speaker 2: What do you think it will take to get the
Speaker 2: market share higher? Why do you think there has been reticence?
Speaker 2: Has it been? And just because people are used to
Speaker 2: the iPhone ecosystem, it's harder to drag them out. Is
Speaker 2: it more that you therefore, folks sort of an international consumer,
Speaker 2: particularly you've made real inroads in Japan for example.
Speaker 1: That's right.
Speaker 8: Pixel is the fastest growing smartphone in our markets, and
Speaker 8: it's the only phone that grew in units sold your
Speaker 8: over years. So we're definitely seen that and we're looking
Speaker 8: forward to more of that, and especially with all the
Speaker 8: AI features and all the amazing hardware and software, that's
Speaker 8: what we're going after.
Speaker 2: How are you thinking internationally about your supply chain as well?
Speaker 8: In terms of supply, like you mentioned it, Pixel is
Speaker 8: doing very well in our international markets in Japan as well,
Speaker 8: and so that is a core focus of how do
Speaker 8: we make sure that you know users across the world
Speaker 8: in our markets get our phones.
Speaker 2: What about ultimately building the phone because there has I
Speaker 2: think of an Apple that's had to really rethink the
Speaker 2: way in which its product is made, where it is made,
Speaker 2: in this global landscape where suddenly China in US just
Speaker 2: aren't getting on in quite the same way, how do
Speaker 2: you think about with sustainability on the one side, also
Speaker 2: supply chain resilience on the other.
Speaker 8: So, like you said, sustainability is a big focus for us,
Speaker 8: and it's been a years in the making. It's not
Speaker 8: something they're doing right now. As we announced on stage,
Speaker 8: actually on sustainability. This is the first phone which is
Speaker 8: free of plastics. So sustainability where it's made, how it's made,
Speaker 8: is a key has been a key focus and is
Speaker 8: a key focus for us.
Speaker 2: And a lot of this is also about well the
Speaker 2: entire ecosystem, not just a supply chain, but also of
Speaker 2: what you're offering alongside the air buds, the watch, the
Speaker 2: way in which you can interact across all of the software.
Speaker 5: Two.
Speaker 2: I mean, you're someone who's been in Google now for
Speaker 2: seventeen years. I think it is what is it that
Speaker 2: makes you so addicted to continuing to build with this company?
Speaker 8: The people, the people I've been at Google for some
Speaker 8: I grew up with Google, and I you know, it
Speaker 8: might sound cliche, but I do love the people that
Speaker 8: I work with. They push you to think well, that
Speaker 8: push you to do the right thing, and that's what
Speaker 8: I really enjoy about working at Google. The people around us.
Speaker 2: Well, we're thinking about your product todation as Zach, thank
Speaker 2: you very much and Nei for joining us. We've got
Speaker 2: a few more of your people on the show a
Speaker 2: bit later, Director of product management for Pixel at Google.
Speaker 2: Great to have thank you, thank you for having me.
Speaker 2: Welcome back to BLUEBG Technology. Let's have a little turn
Speaker 2: our attention out to VC Spotlight and bring in Morgan
Speaker 2: bella partner at NFX Capital Management who was also one
Speaker 2: of the founders of Facebook's cryptocurrency project Libra. And remember
Speaker 2: that one she was building one of the first stable coins.
Speaker 2: You've ridden out what has been sort of the highs
Speaker 2: and the lows of how crypto more broadly is seen
Speaker 2: not only by a consumer, Morgan, but also by a
Speaker 2: regulator in the US. I'm interested is we do start
Speaker 2: to see the time of sound backman, freedom court, the
Speaker 2: pain points relived for so many How are you feeling
Speaker 2: about the cryptosphere in which you're investing. Is there activity
Speaker 2: going on, particularly in the startup community.
Speaker 3: Thank you so much for having me on.
Speaker 9: I have a potentially not popular opinion on this, but
Speaker 9: I am so much happier investing in crypto today than
Speaker 9: I was twelve months ago, even you know, before the
Speaker 9: FTX scandal. And a question that I've asked other crypto
Speaker 9: founders is do you think that there's a chance that
Speaker 9: we look back on this FTX mess as a positive?
Speaker 9: And people looked at me kind of like I had five.
Speaker 3: Heads, But let me explain why. And I think it's
Speaker 3: ft It.
Speaker 9: Was crazy out there and the laws of gravity were
Speaker 9: not thought to apply to crypto, to crypto startups, and
Speaker 9: what FTX forced us I people in the crypto industry
Speaker 9: to ask ourselves an answer. I think we're three straightforward
Speaker 9: questions that we all should have been asking regardless, which
Speaker 9: is one, does this company solve a problem for anyone
Speaker 9: or this product?
Speaker 3: Two?
Speaker 9: Is anyone using this? And three will this make money?
Speaker 9: And there were so many companies and there are so
Speaker 9: many company needs that were funded that are funded that
Speaker 9: don't answer one of those three questions, let alone three
Speaker 9: of those three questions, So the party that was.
Speaker 3: Going on had to come to an end.
Speaker 9: The FTX way of it coming to an end was
Speaker 9: the most dramatic way that that could have happened. But
Speaker 9: I really do think that there's a chance that it
Speaker 9: ends up being a gift for the crypto startup world,
Speaker 9: for the companies that are solving real problems, which I
Speaker 9: know is not a popular opinion, but I do believe.
Speaker 2: That we won't contra INDs Mogan, and I'm interested in
Speaker 2: even if this happens to be a cathartic moment for crypto.
Speaker 2: More broadly, all the builders building here in the US,
Speaker 2: all the problems being solved are is the money being made,
Speaker 2: all people using some of the dots and some of
Speaker 2: the applications.
Speaker 3: Here in the US.
Speaker 2: You're having to go to a broad for those of founders.
Speaker 9: So yes, and we are definitely still seeing companies built
Speaker 9: in the US. I think what you saw pre FTX
Speaker 9: was everyone and their brother and sister was starting a
Speaker 9: crypto company because it was the gold rush. What has
Speaker 9: been filtered out now is people that are starting crypto
Speaker 9: companies are only starting crypto companies because they actually see
Speaker 9: a problem to solve and actually have a passion for
Speaker 9: the industry versus they just see a casino that looks fun.
Speaker 9: So I think that there's a filter now in a
Speaker 9: good way for who's actually starting companies. And then, yes,
Speaker 9: people are using crypto applications, but if we're all being honest, like,
Speaker 9: the only application that's really achieved any kind of product
Speaker 9: market fit as far as scale is Bitcoin, ethereum and
Speaker 9: stable coins. When you're seeing development in the US, it's interesting.
Speaker 2: We do understand, in fact, the trial for some of
Speaker 2: Manfred is underway, and we're understand the opening statements being
Speaker 2: made by Murfree and current the expressionists. We understand as
Speaker 2: the government continued with their opening remarks saying that the
Speaker 2: defendant wanted money he didn't have and he committed food.
Speaker 2: But Morgan, let's move away from that for a moment
Speaker 2: to the regioustry environment with which we're in, because you
Speaker 2: do have an sec chair chat who seems adam and
Speaker 2: to police. Whether it's after these companies are built or
Speaker 2: as they're being built, and I'm interested as to whether
Speaker 2: that's really an environment people want to find product market fit.
Speaker 2: In the moment, I think it's.
Speaker 9: An environment that people want to find product market fit
Speaker 9: in if there is like a market and a business
Speaker 9: to be built. But it's definitely a thorn for sure.
Speaker 9: And I think an issue is there are very few
Speaker 9: topics that rally both sides and that gain you favor
Speaker 9: on both sides. So if you're a politician with political
Speaker 9: aspirations and you're trying to win favor on both sides
Speaker 9: of the aisle, going after a crypto is one of
Speaker 9: a few categories that no one's going to really oppose you.
Speaker 9: So the incentives and the psychology behind that are definitely
Speaker 9: not in crypto's favor, which is a bummer welcoing.
Speaker 3: There's still technical time.
Speaker 2: I mean, go in there then and get integritty with
Speaker 2: some of the problems you like to be being solved
Speaker 2: in this. I mean, what's getting you excited when you're
Speaker 2: getting up twelve months on then you're saying it's a
Speaker 2: far better environment to be writing checks into and in
Speaker 2: effects has a little money to put to work. You're
Speaker 2: already putting money into various so soought ups, whether it's
Speaker 2: space folks, space, I mean where they were Also in
Speaker 2: mister Lab's ramp is a company of cools that's all
Speaker 2: about trading of crypto and our sets. Where'd you want
Speaker 2: to see some of these problems solved for you?
Speaker 3: Thank you for those shout outs.
Speaker 9: So stable coins still I I spent four years banging
Speaker 9: my head against a wall, so I still think that
Speaker 9: there's a lot of room to go there more from
Speaker 9: the US government by inside. And if you think that
Speaker 9: digital money is going to be the future, the US
Speaker 9: government really needs to recognize that and get on that,
Speaker 9: or else we're going to wake up and be living
Speaker 9: in a world with Chinese digital money running throughout the
Speaker 9: world in people's hands, which I don't think is a
Speaker 9: first choice for us in the US.
Speaker 3: And then also just usability.
Speaker 9: I think what you've seen with AI is Chat GPT
Speaker 9: had this moment with mainstream consumers. Crypto has not had
Speaker 9: its chat GPT moment yet. So something that brings net
Speaker 9: new users into the world in a real, meaningful, productive
Speaker 9: way is I mean, obviously the holy grail and I
Speaker 9: don't have any specific answers, but something we're always looking for.
Speaker 2: Wow, We'll keep on waiting for the answer to mog
Speaker 2: and Mella come back with it soon, we hope. Partner
Speaker 2: at NFX Capital Management great tows some time with you today. Meanwhile, look,
Speaker 2: here's something else that we're watching. Founders of online delivery
Speaker 2: companies worldwide. They exploded during the pandemic in terms of
Speaker 2: they got a lot bigger, and now they're watching their
Speaker 2: fortunes disappear. The group includes the founders of say, Turkeys
Speaker 2: Get here and Silicon Valley's Instagraart Door Dash, while they've
Speaker 2: now collectively lost fifteen billion dollars more than in terms
Speaker 2: of overall market valuation. Coming up, let's talk about healthcare tech.
Speaker 2: The startups Commya and athle ethelas they're merging to drive
Speaker 2: value for doctors and patients using the power of AI.
Speaker 2: Conversation with Tanay Tandon, CEO of Comya as he brings
Speaker 2: those two companies together under his leadership. This is Boomberg
Speaker 2: Technology taking a look at Palenteers Shares for you today
Speaker 2: because the data analysis firm co founded by tech billionaire
Speaker 2: p Total of course, but it's closing in on a
Speaker 2: contract with the United Kingdom's National Health Service, the NHS.
Speaker 2: It could be a five year agreement which is designed
Speaker 2: to help the agency analyze medical data, detect suspicious patterns,
Speaker 2: ultimately overhaul its entire system. Now sources say the government
Speaker 2: is on track to announce Palenteer as the winning bidder
Speaker 2: as soon as this month. Now, from one Tolkien inspired
Speaker 2: name to another, in the world of healthcare, two healthcare
Speaker 2: startups are forging a new path using artificial intelligence to
Speaker 2: become a health operating system data platform Commere and athel Us,
Speaker 2: which is also from Middle Earth, which builds remote patient
Speaker 2: monitoring technology, will complete a merger by the end of
Speaker 2: the month. Joining us now is Tonay Tan and CEO
Speaker 2: of Comure, who was of course leading Athelus. And I'll
Speaker 2: ask you with the ny Tolkien is such like big
Speaker 2: part in all these naming of these companies. But today,
Speaker 2: ultimately you're trying to use AI to make healthcare more
Speaker 2: well efficient in the same way that Palenteer might do
Speaker 2: with the NHS.
Speaker 3: Correct, that's right.
Speaker 10: And first of all, I'm impressed you've got the Lord
Speaker 10: of the Rings reference. Most people don't, But that's exactly right.
Speaker 10: We're taking one of the biggest pain points in healthcare,
Speaker 10: which is a disparate set of data sources across hundreds
Speaker 10: of different systems, in tons of manual work the doctors
Speaker 10: and administrators do every day and supercharge that with large
Speaker 10: language models to automate workflows and grow doctor's revenue and
Speaker 10: health system revenue.
Speaker 2: What everyone is course is slightly concerned about with Panenteer
Speaker 2: in the NHS is data and data sharing and the knowledge.
Speaker 2: How are you making sure that from the get go
Speaker 2: the users ultimately the end of this feel very secure
Speaker 2: about the security of their data.
Speaker 10: I think that's a non negotiable when you look at healthcare,
Speaker 10: it companies, software businesses, it really comes down to making
Speaker 10: that appe zero in terms of how you design your
Speaker 10: systems and working forward from there to really help at
Speaker 10: the end of the day to drive value or drive
Speaker 10: value for doctors and clinicians well at the same time
Speaker 10: protecting patient information and the companies.
Speaker 3: That go on.
Speaker 2: I know I was just going to say driving value. Well,
Speaker 2: clearly the business that is bringing you together and some
Speaker 2: of your VC backers think that you're going to have
Speaker 2: a lot of value and ultimately together you've got a
Speaker 2: combined valuation of about six billion dollars. And tell me
Speaker 2: about the revenue streams. Therefore, today, how are you going
Speaker 2: to be building and making sure that you can win
Speaker 2: business in a profitable manner.
Speaker 10: Definitely, I think the exciting thing about healthcare is it's
Speaker 10: twenty percent of US GDP. Fellas already processes hundreds of
Speaker 10: millions of dollars worth of claims, communore deals with billions
Speaker 10: of dollars worth of appointments every single year. And this
Speaker 10: is just a small percentage of the total dollars that
Speaker 10: flow through the healthcare system. And the exciting thing here
Speaker 10: is that we can use software at the end of
Speaker 10: the day automate these workflows and drive up profit margin
Speaker 10: for health systems and end of day, take a small
Speaker 10: cut of that to grow the profitability of our own business.
Speaker 2: How did this merger come about? Was it all to
Speaker 2: do with General Catalyst? Of course, it was backing both
Speaker 2: of you.
Speaker 10: I think this merger has been a long time coming.
Speaker 10: I've known him Mont Teenager, the managing director at General
Speaker 10: Cadalists for seven years now. You've known me since before
Speaker 10: I dropped out of school. To founder Fellas and the
Speaker 10: end of day is a marriage made in heaven. These
Speaker 10: two companies serve similar customers, have similar end goals. One
Speaker 10: has a data platform that saves time, the other bills
Speaker 10: larger language models and revenue cycle software. You put them
Speaker 10: together and you get magic and.
Speaker 2: Talk about those larger language models that are going to
Speaker 2: sort of be part of the magic. There's a lot
Speaker 2: of hand ringing around AI, around ultimately how it disrupts,
Speaker 2: how it boosts productivity, but also how you regulate it.
Speaker 2: How are you managing to weave llms and actually make
Speaker 2: it really integral to your business. Solve here.
Speaker 10: I think there's a lot of noise in the LM space,
Speaker 10: but there's also a ton of signal. The first time
Speaker 10: one of our doctors do describe which is an automated
Speaker 10: workflow for transcribing information and generating CPT codes, their jaw
Speaker 10: drop and it saved them a couple hours that single
Speaker 10: day in documentation. And so for us, language models are
Speaker 10: a tool to accomplish an end goal rather than the
Speaker 10: goal itself. And I think businesses that use them as
Speaker 10: a powerful software automation tool will continue to grow and
Speaker 10: will continue to serve their customers in a very unique
Speaker 10: and honestly novel way.
Speaker 2: Go in there on the unique novel because there have
Speaker 2: been a fair few startups looking at tackling healthcare, making
Speaker 2: it more efficient and more easy to use with the
Speaker 2: power of AI, and we're just hearing how Palent is
Speaker 2: going to be sort of taking on the NHS. What
Speaker 2: makes you different?
Speaker 10: I think the exciting thing here is GC's health assurance ecosystem.
Speaker 10: We have HCA Healthcare, which is the largest hospital operator
Speaker 10: in the country on our board in one of our
Speaker 10: largest customers. We have thousands of small businesses in terms
Speaker 10: of small practices like private doctors, a solo practice, ten
Speaker 10: provider clinics also on the platform. And so the breadth
Speaker 10: of appointments to sure volume of notes that we're processing
Speaker 10: every day, I think is what makes us very unique.
Speaker 10: And the partnership, the deep partnership with Legacy Healthcare. We're
Speaker 10: not trying to disrupt anyone, We're just trying to empower them.
Speaker 2: And then what of your post merger being, where do
Speaker 2: you take this? Are you going to have to cut
Speaker 2: down on people ultimately? How are you going to ensure
Speaker 2: that your margin focused revenue boosting in a time where
Speaker 2: that's exactly what vcs want to see.
Speaker 10: The mandate years to grow were a company that thankfully
Speaker 10: both companies five plus years of runway independently on track
Speaker 10: to go public as individual companies. Bring them together only
Speaker 10: accelerates that path, and I think we're going to be
Speaker 10: one of the biggest hirers in the next year in
Speaker 10: healthcare and software, and so hopefully a home for many
Speaker 10: of the folks that did get laid off in the
Speaker 10: last year or.
Speaker 2: Two you were busy raising money and when you were
Speaker 2: leading a fellas and I'm looking at what Sequoia General
Speaker 2: catalysts mentioned why comminies have also in Vidia, and I'm
Speaker 2: interested about how at the moment where there is such
Speaker 2: fierce competition for compute, for chips, for access to be
Speaker 2: able to build these large language models, how much has
Speaker 2: that to hang up for you.
Speaker 10: This is a defining moment in computing. I think what
Speaker 10: Nvidia is unlocked is a new kind of magic in
Speaker 10: terms of software and automations, and end of day, they're
Speaker 10: going to make a lot of money on it, but
Speaker 10: so are a lot of other great companies, and they're
Speaker 10: going to build a lot of great products. And my
Speaker 10: goal is the CEO of Comnore, is to leverage the
Speaker 10: power of GPUs to train these models to do things
Speaker 10: that just weren't possible before.
Speaker 3: And so they'll bill.
Speaker 10: Be a fiber GPUs in the coming years. But ultimately
Speaker 10: I think everyone.
Speaker 3: Will get their share.
Speaker 2: Today great spending some time with you today tenancy of Comueur,
Speaker 2: and it wasn't me who knew the Tolkien stuff. It
Speaker 2: was my producer Marguerite to shout out to her. Let's
Speaker 2: get back to Google's announcements today. It's not all about
Speaker 2: the pixel lineup, because a Silicon Valley company also wants
Speaker 2: to compete with Apple and many more health trackers for example,
Speaker 2: and watches with the pixel Watch too, which includes faster
Speaker 2: Qualcom chip. It's also lighter. Let's bringing James part Fitbit,
Speaker 2: vice president, general manager at Google, has just been presenting
Speaker 2: the new watch. And how are you setting yourselves apart?
Speaker 2: What is the offering that you have different from some
Speaker 2: of the other things that are on the market right now.
Speaker 1: James, A great question. You know. One of the key
Speaker 1: things that we wanted to do is improve upon the
Speaker 1: great things that we did in the first generation pixel Watch. So,
Speaker 1: as you pointed out, we introduced a new processor which
Speaker 1: makes the performance a lot smoother and snappier, and it's
Speaker 1: very noticeable for our users. We've also dramatically improved the
Speaker 1: battery life as well. With the always on display on
Speaker 1: you still get twenty four hours of battery life, and
Speaker 1: we're also offering much faster charging time for our users
Speaker 1: as well. And along with that, you know, one of
Speaker 1: the most important aspects of the Google pixel Watch too
Speaker 1: are it's safety and health features. So we offer this
Speaker 1: feature called safety Check. You just check in, and if
Speaker 1: you don't check in at their a certain period of time,
Speaker 1: your location will be automatically shared with your emergency contact,
Speaker 1: so it gives you that peace of mind. And then
Speaker 1: we've introduced three new health sensors, including skin temperature, dramatically
Speaker 1: improved heart rate with forty percent more accuracy, and a
Speaker 1: new sensor called body response to help you manage your stress.
Speaker 1: So there's a lot of improvements packed in this next
Speaker 1: generation of the pixel Watch that we're really excited about.
Speaker 2: Who's your typical buyer right now? I, as a parent,
Speaker 2: immediately am starting to look at the world of smart
Speaker 2: watches as a way to ensure my children is safe.
Speaker 2: But who is generally the purchaser and wearer of this.
Speaker 1: I think it's really anyone and everyone who's interested in
Speaker 1: just improving their overall fitness levels and also interested in
Speaker 1: having a great companion to their phone as well. So
Speaker 1: the pixel Watch two not only combines helpfulness features like
Speaker 1: Google Maps, and wallet, but a lot of great health
Speaker 1: and fitness features as well.
Speaker 2: Can you push us forward? I know it's frustrating on
Speaker 2: a day where you're just announcing the second version, but
Speaker 2: what does health and health wearables look like in the
Speaker 2: next few years. Many have been hoping for blood glucose monitoring.
Speaker 2: Many are now looking at well AI and the way
Speaker 2: in which you're going to have an AI wearable. How
Speaker 2: are you trying to be ahead of the curve at Google.
Speaker 1: So you can see from the leap from the Google
Speaker 1: pixel Watch one to Google pixel Watch two that there's
Speaker 1: always a continuous spectrum of improvements that we're making, from
Speaker 1: general purpose helpfulness to health and safety features. And what
Speaker 1: I imagine for the future is that these devices, whether
Speaker 1: they're trackers or smart watch, are going to be very
Speaker 1: essential component of people's lives. It should be something that
Speaker 1: you don't want to leave home without one because you
Speaker 1: know they can massively improve your life or they can
Speaker 1: even help save your life in the future. For instance,
Speaker 1: our watches have an algorithm that help detect irregular heart
Speaker 1: events like aphib which can massively increase the risk of strokes.
Speaker 1: So all of these things I think really bring a
Speaker 1: lot of helpfulness and utility to people who wear them.
Speaker 2: What are some of the biggest blockers to the next iteration,
Speaker 2: to the next vision of where you see healthcare going
Speaker 2: from a wearable.
Speaker 1: I don't see them really as blockers, but I see
Speaker 1: them as opportunities for me. That things that are really
Speaker 1: exciting for me are introducing technologies that we're only available
Speaker 1: in a hospital grade setting or medical grade devices and
Speaker 1: bringing them that capability and that helpfulness to as many
Speaker 1: people as possible. And that requires breakthroughs in power management
Speaker 1: that are processors, improve sensors that can actually fit within
Speaker 1: the confines of a smart watch. So to me, those
Speaker 1: are really exciting opportunities of research. And I think you know,
Speaker 1: we hinted at this in our announcement today. The application
Speaker 1: and the use of AI and healthcare is going to
Speaker 1: be an exciting new frontier where AI can really find
Speaker 1: connections and correlations and your health data that were just
Speaker 1: very difficult to spot before and give you personalized insights
Speaker 1: and guidance and coaching.
Speaker 2: James park Fitbit, vice President, general manager at Google, fresh
Speaker 2: off the stage, We thank you for it. Meanwhile, that
Speaker 2: does it for this edition of Broomback technology. You do
Speaker 2: not want to forget to check out our podcast go
Speaker 2: find it on the terminal, online, on Apple and Spotify.
Speaker 2: iHeart this is a BlueBag technology