WEBVTT - AWS CEO Steps Down and OpenAI Updates Its AI Model 0:00:02.440 --> 0:00:10.280 Bloomberg Audio Studios, podcasts, radio news from Marhart where Innovation, 0:00:10.560 --> 0:00:14.920 money and power Collie in Silicon Valley, NBN. This is 0:00:14.960 --> 0:00:18.400 Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:31.360 --> 0:00:33.800 I'm Caroline Heinde and Bloomberg's world headquarters in New York, 0:00:34.200 --> 0:00:35.920 and I met Ludlow in San Francisco. 0:00:36.080 --> 0:00:38.000 This is Bloomberg Technology coming up. 0:00:38.200 --> 0:00:42.720 Amazon Web Services CEO Adam Slipski is stepping down from 0:00:42.760 --> 0:00:44.320 the job. Details to come. 0:00:44.880 --> 0:00:48.479 Plus Open Ai unveils its updated AI models as Google 0:00:48.600 --> 0:00:52.120 kicks off It's AI event today for coverage ahead, and we. 0:00:52.080 --> 0:00:53.800 Sit down with the CEO of the buy now, pay 0:00:53.920 --> 0:00:57.520 later firm Klana as a company eyes that long awaited IPO, 0:00:57.640 --> 0:00:59.600 But first set's check in on what's already training on 0:00:59.600 --> 0:01:02.200 these public markets, and maybe a little bit of a 0:01:02.600 --> 0:01:04.920 reprieve in some animal spirits even though we see that 0:01:04.959 --> 0:01:08.440 PPI number that produce a price index coming in hotter 0:01:08.480 --> 0:01:11.120 than anticipated, but you get more granular and maybe there's 0:01:11.160 --> 0:01:13.520 sign of cooling in some of the key areas that 0:01:13.520 --> 0:01:16.240 the FED will be focusing on from inflatory pressures here 0:01:16.240 --> 0:01:17.800 in the US and managing to pull up some four 0:01:17.840 --> 0:01:20.480 tens percent on the Nasdaq, and notably, even though we 0:01:20.520 --> 0:01:22.720 saw an initial knee jerk sell off, we're back to 0:01:22.800 --> 0:01:25.000 rallying on the bond market, particularly at the two year yield. 0:01:25.240 --> 0:01:27.400 I'm also shining light on what's happening on those highly 0:01:27.440 --> 0:01:30.440 shortened names. Basically, what's happening with the likes in gamestoc 0:01:30.480 --> 0:01:34.120 AMC Another extraordinary rally, no fundamental reason, but we go 0:01:34.200 --> 0:01:37.360 a long they particularly high short interest stocks, those that 0:01:37.400 --> 0:01:39.640 are widely beed against by the broader market. We're up 0:01:39.640 --> 0:01:41.840 seven percent on that particular index. Move on, have a 0:01:41.880 --> 0:01:44.520 look at what's happening on the world a Bitcoin. Actually 0:01:44.640 --> 0:01:48.280 no move across or read across from the meme frenzy 0:01:48.520 --> 0:01:50.840 to the crypto frenzy. Today Bitcoin just selling off a 0:01:50.880 --> 0:01:51.240 little bit. 0:01:51.240 --> 0:01:52.200 In fact, we've. 0:01:52.000 --> 0:01:55.560 Heard from some key players within the cryptosphere and thinking 0:01:55.560 --> 0:01:57.200 of Might Novogratz saying, actually, look, we're going to be 0:01:57.280 --> 0:01:59.480 ranged brown from fifty five to seventy five thousand. We're 0:01:59.480 --> 0:02:01.400 currently at six two thousand. Let's call it today, ed, 0:02:01.440 --> 0:02:02.600 what are you watching on the micro. 0:02:03.360 --> 0:02:06.200 There is a lot of technology to fit in today's show. 0:02:06.240 --> 0:02:08.760 Let's go to China and the US listed shares of 0:02:08.800 --> 0:02:11.560 Ali Barbera and Tencent Ali Barbera. The story is low 0:02:11.639 --> 0:02:15.480 single digit growth in e commerce and cloud. There's fighting 0:02:15.560 --> 0:02:18.960 talk about AI and fighting talk about the spending power 0:02:18.960 --> 0:02:21.520 of the Chinese consumer, but those US listed shares are 0:02:21.520 --> 0:02:24.680 lower compare contrast with Tencent. They're seeing a lot of 0:02:24.760 --> 0:02:28.440 ad growth, particularly in video, and we Chat is seeing 0:02:28.480 --> 0:02:31.560 a really big surge in usage. Hour later in the program, 0:02:31.639 --> 0:02:34.560 we'll go to team coverage on those two key China names, 0:02:34.560 --> 0:02:38.720 and you mentioned it Google Io. Later today Alphabet will 0:02:38.720 --> 0:02:41.440 show its hand, we think on its next offerings in 0:02:41.480 --> 0:02:42.480 our official intelligence. 0:02:42.560 --> 0:02:44.200 Let's get to our top story. 0:02:44.160 --> 0:02:48.200 And that is Amazon and Amazon Web Services or AWS, 0:02:48.639 --> 0:02:52.600 the cloud unit of Amazon. The company announcing that Adams 0:02:52.680 --> 0:02:57.200 Lipski is stepping down as CEO of AWS effective June third. 0:02:57.320 --> 0:03:00.200 Matt Garman, who started as an intern and am in 0:03:00.400 --> 0:03:02.880 two thousand and five, was one of the early product 0:03:03.000 --> 0:03:07.000 leaders in AWS, will take over as the CEO. The 0:03:07.040 --> 0:03:09.919 shares are off session lows, but still down around eight 0:03:09.919 --> 0:03:12.640 tens of a percent in this Tuesday session, and the 0:03:12.680 --> 0:03:16.119 market asking questions, well, is this bad for Amazon's cash cow? 0:03:16.360 --> 0:03:18.480 And who on earth is Matt Garman. Let's get out 0:03:18.520 --> 0:03:21.680 to Seattle. Bloomberg's Matt Day joins us, and let's start 0:03:21.680 --> 0:03:25.240 with the news at hand. Why is Adam Zelyipsky stepping 0:03:25.280 --> 0:03:29.240 down as CEO? And should we be worried? I suppose 0:03:29.560 --> 0:03:31.160 about the health of AWS. 0:03:31.960 --> 0:03:34.880 I should listened to Amazon CEO Andy Jase tell it, No, 0:03:35.000 --> 0:03:38.360 we shouldn't be worried, he said. When he recruited Adam Selipski, 0:03:38.400 --> 0:03:41.000 who was his right hand in building the WS business, 0:03:41.080 --> 0:03:44.120 back to Amazon in twenty twenty one, they'd had a conversation, said, listen, 0:03:44.160 --> 0:03:46.320 give me a few years and get the next generation 0:03:46.360 --> 0:03:49.320 of leaders in shape, and then we'll talk later. Andy 0:03:49.400 --> 0:03:52.480 Jesse said, Adam Selipsky is considering other challenges. We don't 0:03:52.480 --> 0:03:54.680 know what those might be. Nobody detailed that in their 0:03:54.680 --> 0:03:57.160 emails to staff today. We just know that he is 0:03:57.160 --> 0:03:58.480 out as of next month. 0:03:59.080 --> 0:04:02.160 Some well and rest with family seems to insinuate before 0:04:02.200 --> 0:04:04.800 he launches onto his next challenge. Memory was CEO of 0:04:04.800 --> 0:04:08.160 Tableau for an interim basis in his long career with Amazon. 0:04:08.200 --> 0:04:11.480 I'm interested, therefore, on who Mac Garmon is as we know, 0:04:11.680 --> 0:04:15.000 like what an MBA intern turns now one of the 0:04:15.120 --> 0:04:15.960 key executives. 0:04:16.760 --> 0:04:19.520 That's right, so Matt Garmon, he's a lifer at Amazon 0:04:19.640 --> 0:04:21.680 joined and two thousand and five, is an intern two 0:04:21.680 --> 0:04:23.839 thousand and six as a full timer and led some 0:04:23.880 --> 0:04:27.080 of their initial services, helped set pricing the first names 0:04:27.120 --> 0:04:29.599 for the products AWS put on the market, and since 0:04:29.640 --> 0:04:32.159 then he's spent most of his time as an engineering leader. 0:04:32.400 --> 0:04:35.520 He was leading one of thems on's most important divisions 0:04:35.520 --> 0:04:37.960 of the sort of computing power for rent group, and 0:04:38.000 --> 0:04:40.839 then back in twenty twenty he found himself running sales 0:04:40.839 --> 0:04:43.039 and marketing, and to a lot of AWS insiders that 0:04:43.080 --> 0:04:44.880 really looked like he was getting set up to succeed 0:04:44.960 --> 0:04:48.680 Andy Jasse, the division's founding CEO. Turns out Andy brought 0:04:48.720 --> 0:04:51.599 back Adam Sleipski instead. But this isn't a surprise anybody 0:04:51.640 --> 0:04:54.600 who's been following either Matt Garman's trajectory or or AWSS. 0:04:56.600 --> 0:04:57.800 The market was a bit worried. 0:04:57.960 --> 0:05:00.720 There was a knee jerk reaction if you ca percentage 0:05:00.760 --> 0:05:03.479 point decline and knee jet reaction. Matt and I guess 0:05:03.480 --> 0:05:07.400 the idea is what happens next for AWS? Because Adams 0:05:07.440 --> 0:05:11.440 Lipski left that still accounting for the majority of operating 0:05:11.480 --> 0:05:15.159 income for the entirety of Amazon, and the new figure 0:05:15.160 --> 0:05:18.359 they're giving us is this run rate of one hundred 0:05:18.400 --> 0:05:23.080 billion dollars of revenue sum up where AWS sits today. 0:05:24.080 --> 0:05:26.720 So ABS is the biggest cloud computing company. 0:05:27.040 --> 0:05:28.960 But that said, they've had a bunch of pressure put 0:05:29.000 --> 0:05:31.000 on them in the last year coming out of the pandemic. 0:05:31.000 --> 0:05:32.960 A lot of their biggest corporate customers were looking to 0:05:33.000 --> 0:05:36.400 cut costs. That dropped ABS's growth down to record lows. 0:05:36.640 --> 0:05:40.160 They've bumped up beyond that, which the market seems to 0:05:40.200 --> 0:05:42.760 like well enough, market likes even more though that they 0:05:42.760 --> 0:05:44.760 have said that artificial intelligence. 0:05:44.279 --> 0:05:45.880 Revenue is starting to materialize. 0:05:46.120 --> 0:05:48.640 Last month they said AWS is on pace for it's 0:05:48.640 --> 0:05:51.279 a couple billion dollar business over the course of a year, 0:05:51.640 --> 0:05:54.360 which's not a particularly detailed number, but for a really, 0:05:54.400 --> 0:05:56.920 really hot corner of technology. It's a sign that Amazon 0:05:57.000 --> 0:05:59.200 is getting momentum after really getting kind of beaten out 0:05:59.200 --> 0:06:01.600 of the gate in terms of generated AAI services in 0:06:01.640 --> 0:06:03.960 the last couple of years. So, you know, AWS still 0:06:04.040 --> 0:06:06.599 Amazon's cash cow, still accounts for, you know, the vast 0:06:06.600 --> 0:06:09.200 majority of their operating profit quarter to quarter, you know, 0:06:09.200 --> 0:06:11.000 but that set it's a business. It's been under pressure 0:06:11.000 --> 0:06:12.840 for for the last couple of years, certainly. 0:06:12.600 --> 0:06:15.720 And MAP is it fair to characterize is it being 0:06:15.880 --> 0:06:17.960 beaten out the gate or is it that it just 0:06:18.000 --> 0:06:21.200 didn't use generative AI and it's lexicon quickly enough from 0:06:21.200 --> 0:06:24.120 your perspective when we're anticipating what Google's about to unveil 0:06:24.400 --> 0:06:26.080 for today, I. 0:06:26.080 --> 0:06:27.320 Think it is certainly a little bit of both. 0:06:27.320 --> 0:06:29.160 I mean, the Amazon's been working on machine learning and 0:06:29.200 --> 0:06:31.200 AI services for years and years, as they will tell 0:06:31.240 --> 0:06:33.039 you. You know, if you go back a couple of years 0:06:33.520 --> 0:06:36.000 to win Open AI releases, you know that the chat 0:06:36.000 --> 0:06:38.520 GPT that shocks the world. You know, Amazon wasn't really 0:06:38.520 --> 0:06:40.760 even talking in the same lexicon at that point. Jenerative 0:06:40.760 --> 0:06:42.919 A I wasn't in the conversation. And then when it 0:06:42.920 --> 0:06:46.240 came to embedding, you know, generative AI products into into 0:06:46.240 --> 0:06:49.120 services already on the market. Microsoft got there real quick, 0:06:49.160 --> 0:06:51.520 Google got there real quick. Amazon, you know, caught up 0:06:52.080 --> 0:06:53.839 and is working to catch up further. I guess, but 0:06:53.880 --> 0:06:55.440 you know, I think it's pretty safe to say that 0:06:55.800 --> 0:06:58.120 at least at the outset, there were a couple of steps. 0:06:57.839 --> 0:07:00.280 Behind that day things. 0:07:00.320 --> 0:07:03.680 Matt Garmon on All Things AWS, we thank you so much. 0:07:11.560 --> 0:07:13.440 We've got to talk about Klana, the buy now, pay 0:07:13.560 --> 0:07:15.960 later firm that well, as we all know, is eyeing 0:07:16.040 --> 0:07:19.880 an IPO and we're wondering at what particular point they're 0:07:19.880 --> 0:07:21.160 going to do. That is at the first quarter of 0:07:21.160 --> 0:07:23.480 next year. That's according to reports right now, this comes 0:07:23.480 --> 0:07:26.160 on the hills. What's been a busy year for IPO 0:07:26.240 --> 0:07:28.640 offerings and also a busy year for integrating General to AI, 0:07:28.680 --> 0:07:31.360 which this company is doing. I please say that Sebastian 0:07:31.360 --> 0:07:33.360 see Murkowski is with us, is a clan a CEO, 0:07:33.480 --> 0:07:36.600 and I want to start on what all investors are 0:07:36.600 --> 0:07:38.480 so interested in is the fact that you are eyeing 0:07:38.480 --> 0:07:39.360 the public markets. 0:07:39.520 --> 0:07:40.240 We're hearing as. 0:07:40.120 --> 0:07:44.240 Soon as Q one how much more Tea's crossing. I's 0:07:44.280 --> 0:07:45.760 donning you having to be doing at the moment. 0:07:46.520 --> 0:07:50.240 I've heard that rumor as well, said, well, you know, 0:07:50.320 --> 0:07:53.480 it's an interesting rumor. I but I think for US 0:07:53.560 --> 0:07:56.320 it's always been like really critical. We wanted to establish 0:07:56.360 --> 0:07:58.680 ourselves as a global business. That meant success in the 0:07:58.760 --> 0:08:02.440 US meant both in awareness and in profitability. And now 0:08:02.480 --> 0:08:04.960 with almost forty million users in the US and it 0:08:05.040 --> 0:08:07.880 being a profitable and actually our largest market by revenue, 0:08:08.240 --> 0:08:10.760 those kind of criteria has been met, so we're definitely ready. 0:08:10.920 --> 0:08:13.560 You'd been doing interesting partnerships with eber, You've been launching 0:08:13.560 --> 0:08:15.080 a wait list for a credit card. We'll get into 0:08:15.120 --> 0:08:16.960 those products in a moment. But when you say it's 0:08:16.960 --> 0:08:19.600 an interesting rumor, could you go earlier than Q. 0:08:19.640 --> 0:08:23.920 One, Everything's possible, okay, ed. 0:08:25.960 --> 0:08:26.000 It? 0:08:26.040 --> 0:08:27.120 So, actually, good morning to you. 0:08:28.600 --> 0:08:30.680 Let's think about them where you might list in the 0:08:30.680 --> 0:08:34.880 context of your business. You've grown thirty two percent in 0:08:34.920 --> 0:08:36.600 this country over the last year. 0:08:38.040 --> 0:08:40.600 Why is that? Why are you seeing strength in the 0:08:40.720 --> 0:08:41.520 US market? 0:08:42.000 --> 0:08:44.200 Well, I think that what's interesting Actually it comes back 0:08:44.200 --> 0:08:47.360 to an interesting McKinsey study from fifteen and it showed 0:08:47.400 --> 0:08:50.600 that in this market there is a growing number of 0:08:50.640 --> 0:08:53.160 consumers that are very tired of the credit cards and 0:08:53.200 --> 0:08:56.120 how credit cards work. There's a great Netflix documentary call 0:08:56.160 --> 0:08:58.200 Credit Cards Explain. You will see all the bad practices 0:08:58.240 --> 0:09:00.520 that banks have accumulated over the years to push people 0:09:00.600 --> 0:09:03.400 into debt, to revolve to build up as big balances 0:09:03.440 --> 0:09:07.520 as possible. And these group is self aware. A voiders 0:09:07.559 --> 0:09:10.640 people that are looking for simple credit products, zero interest, 0:09:10.920 --> 0:09:14.560 fixed installment. They're about twenty percent of the US population 0:09:15.200 --> 0:09:18.040 and buy now, pay later speaks directly to this audience, 0:09:18.080 --> 0:09:21.160 and I think that is the most important explanation for 0:09:21.200 --> 0:09:23.640 the success in the US Sebastia. 0:09:23.720 --> 0:09:25.400 Later in the program, we're going to talk a lot 0:09:25.400 --> 0:09:28.520 about Ali Barber's earnings, and I know that that China 0:09:28.559 --> 0:09:30.199 is not something that's supper mined for you. 0:09:30.200 --> 0:09:31.040 But bear with me. 0:09:31.720 --> 0:09:34.320 They talked about the consumer in China having a lot 0:09:34.360 --> 0:09:39.360 of cash, a lot of savings, but sentimentally they're not 0:09:39.480 --> 0:09:43.600 prepared to spend. It's a really psychological market. Now, compare 0:09:43.600 --> 0:09:45.800 and contrast that with the United States. A lot of 0:09:45.800 --> 0:09:48.960 people I hear from are talking about credit card use 0:09:49.320 --> 0:09:53.560 and credit card levels, but psychologically the US consumer seems 0:09:53.760 --> 0:09:56.280 prepared to spend. What do you make of all that? 0:09:56.400 --> 0:09:58.640 What do you see through your platform? 0:09:59.000 --> 0:10:00.000 Exactly that right. 0:10:00.200 --> 0:10:01.600 I was actually a little bit worried. 0:10:01.360 --> 0:10:03.440 Around Christmas when I saw the Christmas cells. I felt 0:10:03.440 --> 0:10:06.280 that Christmas Cells this year was a little bit discount driven, 0:10:06.280 --> 0:10:08.640 and I wasn't clear to how much was merchants kind 0:10:08.640 --> 0:10:12.360 of trying to offload stock do through discount and how 0:10:12.440 --> 0:10:14.880 much was consumer strength, so to speak. But I think 0:10:14.920 --> 0:10:17.840 now with a few moments in the bag, you see 0:10:17.840 --> 0:10:19.880 that like consumers spending in the US is holding up 0:10:20.000 --> 0:10:22.520 quite well, and there is there is that demand. So 0:10:22.520 --> 0:10:24.840 we're seeing that across all categories that we cover, and 0:10:24.880 --> 0:10:27.600 as much as we're associated with kind of fashions so forth, 0:10:27.720 --> 0:10:29.840 like with being live with Uber, with Airbnb, with a 0:10:29.840 --> 0:10:32.079 lot of other big American brands, we can see that. 0:10:32.280 --> 0:10:32.960 Across the board. 0:10:33.480 --> 0:10:35.960 What's so interesting is you have been building up a 0:10:36.000 --> 0:10:37.840 focus here in the US and you have got this 0:10:37.880 --> 0:10:39.600 weight list for a credit card, but you meant to 0:10:39.600 --> 0:10:42.480 be the anti credit card company. I thought this whole 0:10:42.520 --> 0:10:45.640 idea that the spiraling debt that mounts there, how are 0:10:45.640 --> 0:10:46.400 you doing it differently? 0:10:46.480 --> 0:10:47.480 Why do that differently? 0:10:48.040 --> 0:10:50.120 Well, I think that, Like the interesting thing is that 0:10:50.160 --> 0:10:52.360 to me, the card is just a delivery mechanism. It 0:10:52.360 --> 0:10:54.760 allows the consumers to use Klana everywhere, as opposed to 0:10:54.840 --> 0:10:57.160 only the places where merchants have integrated US. And even 0:10:57.200 --> 0:10:59.000 if we cover forty of the top one hundred US 0:10:59.000 --> 0:11:00.880 retailers online today, we still want to. 0:11:00.840 --> 0:11:01.920 Make it available everywhere. 0:11:01.960 --> 0:11:04.560 Right, But I think the key difference versus the credit 0:11:04.559 --> 0:11:06.520 card is how you use it now. When I used 0:11:06.520 --> 0:11:08.920 to work at Burkeying back in the days when you 0:11:08.920 --> 0:11:11.000 would swipe a card you would press one for debit 0:11:11.040 --> 0:11:13.080 and two for credit, because it made a lot of 0:11:13.120 --> 0:11:16.000 sense that you didn't use credit for every purchase, but 0:11:16.280 --> 0:11:18.720 the banks abandoned that because they wanted you to build 0:11:18.800 --> 0:11:21.440 up your monthly statement to be as big as possible, 0:11:21.480 --> 0:11:23.480 to put everything on it. So it increases the likely 0:11:23.520 --> 0:11:27.079 to view lending and borrowing money and kind of increasing 0:11:27.120 --> 0:11:28.880 the revolver and right like, you have to remember, a 0:11:28.880 --> 0:11:32.600 credit card balance is usually five five hundred dollars on average, 0:11:32.720 --> 0:11:35.959 with KLON it's one hundred and fifty dollars. So to us, 0:11:36.200 --> 0:11:39.160 the ability to always have the option between debiting credit 0:11:39.240 --> 0:11:41.720 is fundamental. That's one of the key things that will 0:11:41.760 --> 0:11:45.800 provide a healthier, responsible usage of credit. And in addition 0:11:45.840 --> 0:11:48.600 to that having zero interest and fixed installments. So those 0:11:48.640 --> 0:11:50.719 are the primary concepts, and we can bring them through 0:11:50.760 --> 0:11:53.640 a card, we can bring them through offering them directly 0:11:53.679 --> 0:11:55.360 on the merchant to website or in the. 0:11:55.320 --> 0:11:58.360 Sort and it's heart you're doing things differently by being 0:11:58.840 --> 0:12:01.720 tech driven. A lot of credit card companies are now 0:12:01.760 --> 0:12:04.280 pretty tech driven as well. I want to focus in 0:12:04.320 --> 0:12:07.200 on the genera of AI side, because you caught a 0:12:07.240 --> 0:12:09.960 lot of headlines by the fact that you said, look, now, 0:12:10.200 --> 0:12:12.760 general to AI within our customer services is doing the 0:12:12.840 --> 0:12:15.959 job of seven hundred people. Is it still seven hundred? 0:12:16.080 --> 0:12:16.760 Is it more than that? 0:12:17.120 --> 0:12:20.000 It's probably slightly more by now. I think the reason 0:12:20.000 --> 0:12:22.040 we share we knew that number would kind of catch 0:12:22.080 --> 0:12:25.080 the attention. But it's partially because I feel there's a 0:12:25.080 --> 0:12:27.280 lot of buzz around AI and there is, you know, 0:12:27.320 --> 0:12:29.200 a lot of things demos being announced, and you were 0:12:29.200 --> 0:12:31.880 talking about you know, Google today announcing something, but there 0:12:31.880 --> 0:12:34.559 are few things that are practically there, and a lot 0:12:34.600 --> 0:12:36.840 of business leaders are asking themselves like, where is the 0:12:36.880 --> 0:12:39.680 actual implications on my business? And this was the first 0:12:39.679 --> 0:12:41.679 time we at least felt like, look, here's a practical 0:12:41.720 --> 0:12:45.080 application that isn't like just as small. It's real life 0:12:45.240 --> 0:12:48.600 consumers prefer it because it's actually higher customer satisfaction than 0:12:48.600 --> 0:12:52.040 the human agent, it's faster to use, its higher quality, 0:12:52.400 --> 0:12:55.400 and it's having profound impact. But we also believe that 0:12:55.520 --> 0:12:58.320 society and politicians needs to recognize that this is not 0:12:58.440 --> 0:13:03.160 something that's going toge in ten years. The implications for 0:13:03.320 --> 0:13:05.240 society are going to come in the coming years, and 0:13:05.280 --> 0:13:07.480 it's time to think a little bit proactively about what 0:13:07.559 --> 0:13:09.360 measures could be taken as a consequence. 0:13:10.280 --> 0:13:10.839 Sebastian. 0:13:10.880 --> 0:13:14.079 Exactly one month ago, we had the European Commissioner for 0:13:14.200 --> 0:13:18.160 Financial Services McGuinness visit US here in San Francisco, and 0:13:18.200 --> 0:13:25.199 we talked about fintech regulation. Essentially, you operate in both markets, 0:13:26.320 --> 0:13:29.120 which do you find to be more friendly of the 0:13:29.160 --> 0:13:32.360 regulators between the United States and Europe. 0:13:32.440 --> 0:13:36.199 Well, I think amazingly, the EU introduced some legislation back 0:13:36.240 --> 0:13:38.360 in four or five that meant that we, who are 0:13:38.400 --> 0:13:41.800 a fully regulated bank in Sweden, can password that license 0:13:41.800 --> 0:13:45.959 across all European states, and that is a tremendous advantage, 0:13:46.080 --> 0:13:50.200 and to some degree it's actually easier even to operate 0:13:50.200 --> 0:13:52.800 than across all of the US states, where there's bigger 0:13:52.800 --> 0:13:56.400 differences on consumer credit lending in different US states than 0:13:56.400 --> 0:13:59.200 there is among the European nations to some degree. So 0:13:59.240 --> 0:14:01.760 it's actually, i would say fairly even a little bit 0:14:01.800 --> 0:14:07.079 sometimes at the intanges to be in Europe. But we 0:14:07.200 --> 0:14:11.160 definitely think that there is more competition, openness, and willingness 0:14:11.240 --> 0:14:14.480 to promote competition in the American society than in the 0:14:14.480 --> 0:14:16.920 European Union, and so I think that's very favorable in 0:14:17.720 --> 0:14:19.880 American context. 0:14:20.040 --> 0:14:23.960 Especially when you do go public, investors will be very 0:14:23.960 --> 0:14:26.880 focused on profit. Could you speak a little bit about 0:14:26.880 --> 0:14:27.400 your profit? 0:14:28.600 --> 0:14:32.440 Of course now, I think look from my perspective, I 0:14:32.480 --> 0:14:34.840 hope we will be able to deliver some very interesting 0:14:36.280 --> 0:14:39.160 perspectives when we are ready for that, because we are 0:14:39.160 --> 0:14:43.400 seeing a very strong growth currently within Klana. You know, 0:14:43.440 --> 0:14:47.120 we are definitely about two billion dollars of revenue. We're 0:14:47.960 --> 0:14:51.400 seeing very high volume growth at the same point of time. 0:14:51.600 --> 0:14:56.440 Due to the implications of AI. Since September October, we 0:14:56.520 --> 0:15:00.280 have stopped recruitment and in our case, with normal trition 0:15:00.400 --> 0:15:02.480 rates that most tech companies have where people stay about 0:15:02.480 --> 0:15:07.040 five years, this means that we are actually shrinking in 0:15:07.160 --> 0:15:09.560 number of employees by about twenty percent per year. 0:15:10.560 --> 0:15:12.080 So we hope that by the time. 0:15:11.960 --> 0:15:13.440 We kind of get through that perspective, we're going to 0:15:13.440 --> 0:15:16.000 be able to present something that looks like revenue growth 0:15:16.400 --> 0:15:19.120 wild costs actually diminishing at the same point of time. 0:15:20.720 --> 0:15:22.960 Sebastian, it's been great having some time with you. Thank 0:15:23.000 --> 0:15:25.960 you for coming on and like how you've been navigating 0:15:26.000 --> 0:15:28.520 some of the timing questions with us. Sebastian Si mccowski. 0:15:28.560 --> 0:15:30.760 He's a Klana CEO and what for got coming up 0:15:30.760 --> 0:15:31.200 more in AI. 0:15:31.240 --> 0:15:33.640 I think, yeah, more on AI. I really enjoyed that. 0:15:33.680 --> 0:15:37.080 By the way, open ai unveils its updated chat model 0:15:37.360 --> 0:15:40.240 as Google kicks off it's AI event today. We've got 0:15:40.240 --> 0:15:42.800 really important discussions coming out next stick with us. This 0:15:42.880 --> 0:15:53.040 is Bloomberg Technology. 0:15:58.680 --> 0:16:02.440 Open Ai sing faster, cheaper versions of the AI model 0:16:02.480 --> 0:16:05.520 that underpins its chatbot chat GPT, and it says the 0:16:05.560 --> 0:16:08.120 startup works to hold on to its seeming lead and 0:16:08.120 --> 0:16:11.200 then an increasingly crowded market joining us. Now on the 0:16:11.200 --> 0:16:14.400 announcements made yesterday, Blue MoG's Rachel Mets and we heard 0:16:14.440 --> 0:16:17.680 in particular from the key executives from Marati as well, 0:16:17.720 --> 0:16:22.760 really outlining well, me, as an unpaying user, it is 0:16:22.800 --> 0:16:24.800 going to get a whole load more for free. 0:16:26.240 --> 0:16:28.280 Yeah, I mean that's a big part of what they 0:16:28.320 --> 0:16:31.880 were announcing is that they are giving people a lot 0:16:31.880 --> 0:16:35.320 of capabilities that until now had been reserved just for 0:16:35.400 --> 0:16:39.160 paying users of GPT for but also overall they're saying 0:16:39.200 --> 0:16:42.680 the model is faster and more efficient at this point. 0:16:42.760 --> 0:16:45.800 And there are also some additional interesting things that they 0:16:45.960 --> 0:16:50.600 rolled out as well, such as some audio capabilities that 0:16:50.640 --> 0:16:54.320 are much faster than what we've seen before. They already 0:16:54.360 --> 0:16:58.360 had the ability to talk to chat GPT via the app. 0:16:58.640 --> 0:17:01.000 I believe that was just for paid users in the past, 0:17:02.160 --> 0:17:06.159 but now you can use that in a much more 0:17:06.200 --> 0:17:09.000 real time way. And it also it's much more capable 0:17:09.040 --> 0:17:10.480 than it appeared to be in the past. That'll be 0:17:10.640 --> 0:17:12.359 rolling out the next in the coming weeks. 0:17:12.359 --> 0:17:16.040 I believe Rachel la zero in on the underlying model. 0:17:16.200 --> 0:17:20.000 GPT for oh is that right, GBT for oh, I 0:17:20.040 --> 0:17:20.600 got it right? 0:17:20.680 --> 0:17:21.479 Look at this chart. 0:17:22.280 --> 0:17:25.919 Yeah, so this this is the its performance against benchmarks, right, 0:17:25.920 --> 0:17:28.359 which everyone does when they release a new model. But 0:17:28.400 --> 0:17:29.960 I guess the main thing that open ai I was 0:17:30.000 --> 0:17:34.479 talking about is that this is dramatically reduced latency in text, 0:17:34.640 --> 0:17:38.240 image and video use cases get nitty gritty and nerdy 0:17:38.280 --> 0:17:39.000 for us. 0:17:40.280 --> 0:17:43.280 So I mean, really, this should just make all kinds 0:17:43.280 --> 0:17:45.720 of things faster that people want to do with the model. 0:17:45.760 --> 0:17:48.560 Make it faster to have it back and forth with it. 0:17:48.560 --> 0:17:51.760 It could make it. It could make it feel more 0:17:51.760 --> 0:17:54.520 life like if you're talking to it and it's talking 0:17:54.560 --> 0:17:57.320 back to you. Analyzing pictures. I mean, what they were 0:17:57.320 --> 0:17:59.280 showing this demo that you've got on the screen is 0:17:59.320 --> 0:18:02.359 showing an open camera view rather than right now, if 0:18:02.400 --> 0:18:05.119 you're using the chat GBT app, you have to like 0:18:05.200 --> 0:18:08.479 take a picture. And in the future they said they 0:18:08.480 --> 0:18:12.040 will be adding the ability to analyze videos as well, 0:18:12.119 --> 0:18:15.080 not just still images. So they're trying to bigger, better, 0:18:15.119 --> 0:18:17.680 faster more with this model and some of it. I 0:18:17.680 --> 0:18:19.400 guess we're just gonna have to wait and see how 0:18:19.400 --> 0:18:20.920 well it works. 0:18:21.200 --> 0:18:24.639 Bloomberg's racial mets terrific reporting. Great to have you on 0:18:24.640 --> 0:18:25.040 the program. 0:18:25.040 --> 0:18:27.520 There is one thing that I open Aye did not 0:18:27.680 --> 0:18:31.800 do or reveal, which was search. And the Google Io 0:18:31.920 --> 0:18:35.920 conference is kicking off in Mountain View. Let's hear about 0:18:35.920 --> 0:18:39.359 how Alphabet ceo is to the pitch, I characterized his 0:18:39.520 --> 0:18:42.120 competition with the CEO of Microsoft. 0:18:42.240 --> 0:18:46.240 Just listen to this, I think you'd one of the 0:18:46.280 --> 0:18:47.120 wa is you can. 0:18:48.880 --> 0:18:52.200 Do the wrong thing is by listening to noiself talent 0:18:52.240 --> 0:18:53.879 playing to someone else's dance music. 0:18:54.119 --> 0:18:56.639 I've always been very clear. I think we have a 0:18:56.680 --> 0:18:58.240 clear sense of what we need to do. 0:19:00.080 --> 0:19:02.159 That was part of the conversation that he had on 0:19:02.200 --> 0:19:03.360 the circuit with Emily Chang. 0:19:03.400 --> 0:19:04.639 He was talking about Microsoft. 0:19:04.920 --> 0:19:07.720 But open Ay has been pretty noisy as well, didn't 0:19:07.880 --> 0:19:11.000 reveal its own search. Let's bringing Bloombergs Jackie Deablos zero 0:19:11.160 --> 0:19:13.920 in on Google Io and Jackie, what are you looking 0:19:13.960 --> 0:19:14.239 out for? 0:19:14.720 --> 0:19:17.280 Well, there's a few things, and as center Bridge I 0:19:17.320 --> 0:19:19.959 mentioned the dancing using it's pretty hard to ignore, especially 0:19:19.960 --> 0:19:22.560