WEBVTT - Apple and Google Vs. EU, and Apple's Big Bet on AI 0:00:01.400 --> 0:00:05.720 From Mahard. We're Innovation Money and Power Collie in Silicon 0:00:05.800 --> 0:00:10.240 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.480 --> 0:00:25.880 Ed Ludloven from. 0:00:25.800 --> 0:00:29.320 New York and San Francisco. This is Bloomberg Technology coming up. 0:00:29.360 --> 0:00:30.560 Apple and Google. 0:00:30.360 --> 0:00:34.280 Losing multi billion dollar court fights with the European. 0:00:33.920 --> 0:00:37.640 Union, plus shares of Oracle touch a fresh record high 0:00:37.640 --> 0:00:40.320 on strong demand for AI products. 0:00:40.040 --> 0:00:42.800 While Apple BET's big on AI, unveiling a new line 0:00:42.800 --> 0:00:45.560 of products centered around Apple Intelligence. 0:00:45.600 --> 0:00:46.960 But first let's check on the markets. 0:00:46.960 --> 0:00:49.360 And while it is Apple that we're going to dive 0:00:49.360 --> 0:00:52.760 in on a matcro perspective and maybe tugs the Nasdaq 0:00:52.800 --> 0:00:55.080 more broadly off of its highs. We're up one and 0:00:55.080 --> 0:00:57.400 a half percent over the last two trading days, but 0:00:57.560 --> 0:00:59.480 most of those games are from yesterday. 0:00:59.560 --> 0:01:00.080 Today. 0:00:59.840 --> 0:01:02.920 We are calling some of that risk on sentiment and 0:01:02.960 --> 0:01:05.840 some of the most focus is on some of the 0:01:05.880 --> 0:01:08.119 individual movers, and you're going to dive into it. 0:01:08.880 --> 0:01:12.680 Yeah, Apple and Alphabet, the parent of Google, two court 0:01:12.720 --> 0:01:15.560 fights lost with the EU, but the stock telling two 0:01:15.560 --> 0:01:19.080 different stories. Apple is lower, Alphabet the parent of Google 0:01:19.120 --> 0:01:21.200 modesty higher. Actually at the kind of low point of 0:01:21.240 --> 0:01:25.920 the session, a fourteen point four billion dollar decision to 0:01:26.120 --> 0:01:30.160 imback taxes essentially for Apple, and it's a fine for Google. 0:01:30.640 --> 0:01:34.880 In the fight with the European Union, Eucompetition Commissioner Margaret Vessela, 0:01:34.920 --> 0:01:38.080 who ends her term in November, says the rulings brought 0:01:38.120 --> 0:01:38.759 her to tears. 0:01:38.840 --> 0:01:42.440 Listen to this, of course. 0:01:42.280 --> 0:01:45.200 On your victories, but you also own your defeats, and 0:01:45.319 --> 0:01:50.200 we have had both and hopefully that shows that we 0:01:50.240 --> 0:01:53.520 are willing to push the envelopes also sometimes to take 0:01:53.560 --> 0:01:57.240 a risk in order to try to make sure that 0:01:57.240 --> 0:02:00.640 the market serves the consumer, that we are not just 0:02:00.680 --> 0:02:03.280 small porns. We'll meet for the machine. 0:02:04.040 --> 0:02:07.800 I think Vesay has long maintained this idea that an 0:02:07.800 --> 0:02:10.960 individual member state should not make an ad hoc beneficial 0:02:11.000 --> 0:02:14.120 tax arrangement with a specific company like Apple. Let's bring 0:02:14.160 --> 0:02:16.880 in Bloombergs Jennifer Duggan out of Dublin for more. And 0:02:16.919 --> 0:02:22.120 this relates to a historic series of events in Ireland. 0:02:22.520 --> 0:02:25.600 Back taxes essentially just explain the basics of the EU 0:02:25.760 --> 0:02:27.040 ruling in Apple's case. 0:02:29.560 --> 0:02:29.720 Hi. 0:02:29.880 --> 0:02:35.000 Yeah, The case relates to tax Apple's tax that was 0:02:35.000 --> 0:02:37.600 paid in Ireland back in the nineteen nineties and early 0:02:37.639 --> 0:02:43.880 two thousands under the ruling today, the European Court ruled 0:02:43.919 --> 0:02:47.400 that Apple hadn't paid enough tax and that Ireland had 0:02:47.680 --> 0:02:52.280 granted Apples state aid in relation to its presence in Ireland, 0:02:52.680 --> 0:02:56.720 so that tax will no need to be paid in Ireland. 0:02:56.800 --> 0:03:00.400 Just to remind us more broadly of Ireland's view on 0:03:00.560 --> 0:03:03.560 taxes of old and why it is embroiled in this 0:03:03.639 --> 0:03:04.160 way with. 0:03:04.160 --> 0:03:10.680 Apple, Well back in the early nineteen nineties, Ireland had 0:03:11.000 --> 0:03:13.320 wanted to make itself an attractive place for foreign direct 0:03:13.400 --> 0:03:18.280 investment and it had a lower corporation tax rate as 0:03:18.320 --> 0:03:21.760 part of those efforts. Since then, there was a lot 0:03:21.800 --> 0:03:23.960 of accusations at the time of Ireland that Ireland had 0:03:23.960 --> 0:03:29.000 become a tax haven. There are some tax tax loops, 0:03:29.080 --> 0:03:32.400 essentially one in particularly that was known as the Double Irish. 0:03:33.040 --> 0:03:36.880 Those have in the past ten fifteen years those have 0:03:37.680 --> 0:03:40.520 essentially been closed off and Ireland is now subject to 0:03:40.920 --> 0:03:44.880 has signed up to OECD rules on global taxation and 0:03:44.920 --> 0:03:48.600 it now has a fifteen percent corporation tax rate, So 0:03:48.680 --> 0:03:51.000 those situations have changed. But at the time back in 0:03:51.160 --> 0:03:53.000 this refers to a very specific period back in the 0:03:53.080 --> 0:03:55.480 nineteen nineties and two thousands. 0:03:56.080 --> 0:03:59.040 Apple has some cash spare luckily, but is a huge 0:03:59.040 --> 0:04:02.240 amount to be paying him taxis Jennifer Duggan live from Alan, 0:04:02.280 --> 0:04:04.600 We thank you very much. Apple, in fact, though, introduced 0:04:04.600 --> 0:04:07.320 the latest version of its flagship product just yesterday, the 0:04:07.320 --> 0:04:08.160 iPhone sixteen. 0:04:08.600 --> 0:04:11.360 CEO Tim Cooks, saying it was built for AI. 0:04:11.680 --> 0:04:15.680 Quote from the ground up, Mal German has had ooh, 0:04:15.920 --> 0:04:18.200 a little under twenty four hours to digest. You knew 0:04:18.279 --> 0:04:21.480 most of it coming ahead of the game mark. Is 0:04:21.880 --> 0:04:24.760 it going to be AI that makes everyone buy a 0:04:24.760 --> 0:04:25.479 new aliphone? 0:04:26.800 --> 0:04:30.120 Well, it's interesting because Apple Intelligence isn't, as we've discussed 0:04:30.160 --> 0:04:33.560 many times, isn't going to be released until mid October 0:04:33.600 --> 0:04:36.599 at the earliest, and these phones begin chipping on September twentieth. 0:04:37.160 --> 0:04:39.960 But AI is where the marketing message is at right now. 0:04:40.040 --> 0:04:41.080 AI is what Wall. 0:04:40.920 --> 0:04:44.000 Street is interested in right now. AI has been on 0:04:44.040 --> 0:04:46.479 the mines of consumers in the past several months, so 0:04:46.560 --> 0:04:49.000 that is where Apple is focusing its messaging for these 0:04:49.000 --> 0:04:51.880 new devices. In my view, what's really going to spur 0:04:52.000 --> 0:04:54.480 upgrades are people who are on older phones, whether that's 0:04:54.520 --> 0:04:57.360 the fourteen to thirteen, twelve, eleven or earlier, people who 0:04:57.400 --> 0:05:00.400 have a completely drained battery, people who have a craft screen, 0:05:00.680 --> 0:05:03.400 people who want those nice camera upgrades. It's not really 0:05:03.440 --> 0:05:05.840 going to be the AI that's pushing these sales. It's 0:05:05.839 --> 0:05:08.280 going to be the other factors. I think. 0:05:08.320 --> 0:05:12.039 Mark you add access to iOS eighteen point one beta 0:05:12.120 --> 0:05:14.760 version right, and yesterday I was able to get hands 0:05:14.760 --> 0:05:18.240 on with sixteen sixteen plus pro and pro macs, and 0:05:19.320 --> 0:05:24.640 the early functionality is like quite limited tech summarization, auto 0:05:24.720 --> 0:05:29.760 response in email. There is some pretty cool image editing stuff, 0:05:29.920 --> 0:05:32.080 you know in the version that I was able to access. 0:05:32.640 --> 0:05:34.960 But you seem to have detail as well about what 0:05:35.320 --> 0:05:38.680 happens next, a series of updates and more functionality that's 0:05:38.720 --> 0:05:40.600 perhaps the cutting edge. 0:05:41.520 --> 0:05:42.000 Yeah, that's right. 0:05:42.040 --> 0:05:43.839 So in eighteen point one, that's going to be the 0:05:43.839 --> 0:05:46.960 first version that includes Apple Intelligence, like you said, that's 0:05:46.960 --> 0:05:50.600 going to include summarization, that's going to call phone, include 0:05:50.600 --> 0:05:54.600 phone call recording and provide you a transcription afterwards. It's 0:05:54.640 --> 0:05:57.760 going to include voice memo transcriptions. It's going to include 0:05:57.800 --> 0:06:03.360 notification summarization, notification prioritization within the mail app. And then 0:06:03.400 --> 0:06:06.000 you have eighteen point two coming in December. That's when 0:06:06.080 --> 0:06:09.880 include things like chat GPT integration from open AI. It's 0:06:09.920 --> 0:06:12.480 going to include gen Moji, where you can use text 0:06:13.279 --> 0:06:16.040 to create your own emojis. It's going to include an 0:06:16.040 --> 0:06:20.719 image playground app for generative image creation. There's an updated 0:06:20.760 --> 0:06:25.279 interface for auto email categorization within the mail app. There's 0:06:25.400 --> 0:06:29.080 general notification prioritization across the system on your lock screen, 0:06:29.600 --> 0:06:32.400 so more bells and whistles there. But the real thing 0:06:32.440 --> 0:06:35.040 that people think about when you think about AI is Siri, 0:06:35.200 --> 0:06:37.920 And right now, Siri has an updated interface on these 0:06:37.920 --> 0:06:41.440 newer phones when you're running Apple Intelligence. But truth be told, 0:06:42.240 --> 0:06:45.440 that's just lipstick, right, because the reality is that the 0:06:45.600 --> 0:06:49.159 underpinnings of Siri really haven't change, and Siri is not 0:06:49.279 --> 0:06:52.320 going to change in any meaningful way until it gets 0:06:52.320 --> 0:06:55.800 its own sort of brain transplant, so to speak, in 0:06:55.839 --> 0:06:58.200 March April of next year. That's when Siria is going 0:06:58.279 --> 0:07:01.600 to be able to do things like pull up when 0:07:01.680 --> 0:07:06.279 my mom's flight lands, or what is the podcast that 0:07:06.320 --> 0:07:08.680 my wife sent me two weeks ago? Right, that's the 0:07:08.720 --> 0:07:11.000 deeper integration and in that actions that people have been 0:07:11.040 --> 0:07:13.440 waiting for. That's probably four to six months away. 0:07:13.440 --> 0:07:17.840 Still doing Berg's Mark German an honor to be live 0:07:17.920 --> 0:07:20.200 blogging with you in the trenches of you going through 0:07:20.800 --> 0:07:23.800 pretty much every piece of product announcement that you had 0:07:23.880 --> 0:07:27.080 nailed in advance. Anyway, really strong reporting, Thank you very much. 0:07:27.120 --> 0:07:28.880 I just point out one thing as well that we 0:07:28.960 --> 0:07:31.400 posted in the blog that you take for granted, but 0:07:31.560 --> 0:07:35.640 best ever battery life, most powerful processor. These are things 0:07:35.680 --> 0:07:37.920 that people are interested in, and there's a lot more 0:07:37.960 --> 0:07:40.600 than the iPhone. Let's keep it going with Marabell Lopez, 0:07:40.640 --> 0:07:45.040 principal analysts at Lopez Research, and you know, in aggregate, 0:07:45.920 --> 0:07:49.080 what was there to be excited about across the product 0:07:49.080 --> 0:07:50.280 portfolio for you, Marabell. 0:07:51.920 --> 0:07:55.120 I think in many ways we saw exactly the predictable 0:07:55.120 --> 0:07:57.680 hardware innovations that you could always see with a smartphone. Lunch, 0:07:57.760 --> 0:08:00.640 we talked about a better camera, We talked about bezzlso 0:08:00.680 --> 0:08:04.320 a bigger screen with the watch, we talked about thinner, lighter. 0:08:04.720 --> 0:08:08.120 I think for consumers that are coming into these new 0:08:08.120 --> 0:08:11.280 phones that need to do upgrades the concept of having 0:08:11.320 --> 0:08:15.240 the camera button and the visual intelligence was really interesting. Really, 0:08:15.280 --> 0:08:20.200 what sells phones with consumers continues to be the visual aspects. 0:08:20.600 --> 0:08:23.760 How's the camera? What can we do with photos? What 0:08:23.800 --> 0:08:26.080 can we do with videos? And we saw a strong 0:08:26.160 --> 0:08:28.960 showing on that. I think some of the surprises were 0:08:29.000 --> 0:08:32.000 around things like the health features that they added with 0:08:32.120 --> 0:08:35.840 sleep APMEA and hearing aids, So it was actually, in 0:08:35.920 --> 0:08:40.040 some ways predictable, with a few surprises that really focus 0:08:40.120 --> 0:08:41.160 on usability. 0:08:41.960 --> 0:08:45.280 I think that health focus is an interesting one, Marabell. 0:08:45.400 --> 0:08:49.920 But give us your take on artificial intelligence and Apple intelligence. 0:08:50.200 --> 0:08:51.719 Is that going to be a winning formula if it's 0:08:51.720 --> 0:08:53.240 not actually here to use right yet? 0:08:54.679 --> 0:08:57.400 Well, first of all, I think the concept that it's 0:08:57.440 --> 0:09:01.240 not here until December or Q one next year being 0:09:01.240 --> 0:09:05.400 a big deal is really overplayed. In general, most consumers 0:09:05.440 --> 0:09:07.560 are not going out and saying, what I really want 0:09:07.600 --> 0:09:10.560 right now is artificial intelligence? Right What they want is 0:09:10.559 --> 0:09:13.000 they want things to be easier to use. They want 0:09:13.000 --> 0:09:15.400 to be able to capture better visuals, do better sharing, 0:09:15.559 --> 0:09:18.840 express themselves in different ways. And I think that Apple 0:09:18.840 --> 0:09:22.319 took a very tempered approach to what artificial intelligence means 0:09:22.360 --> 0:09:24.480 and really tried to tie it to those things that 0:09:24.520 --> 0:09:27.920 they thought consumers would find important. So not just artificial 0:09:27.960 --> 0:09:30.840 intelligence for artificial intelligence sake, but something that's going to 0:09:30.880 --> 0:09:34.640 make your life better. They talked about personalization and context 0:09:35.160 --> 0:09:38.760 and how to create videos easier, and how to do emojis, 0:09:38.760 --> 0:09:41.199 So I think these are things that resonate with consumers 0:09:41.559 --> 0:09:44.640 and the timing of that it'll come to them. They'll 0:09:44.760 --> 0:09:46.600 use it, but you know, they're not knocking the doors 0:09:46.679 --> 0:09:48.640 down for it right now. What they want is they 0:09:48.679 --> 0:09:51.320 want a phone or watch that's going to be able 0:09:51.320 --> 0:09:53.600 to run whatever comes next from Apple. 0:09:54.400 --> 0:09:57.199 Ambient Ai is how a guest put it yesterday, just 0:09:57.320 --> 0:10:00.000 naturally doing it all in the background, Marabel, go back 0:10:00.200 --> 0:10:01.720 to the watches and the AirPods. 0:10:02.080 --> 0:10:04.240 It did have quite an impact on certain stocks. 0:10:04.440 --> 0:10:07.480 Certainly hearing aid makes at one point in the trade. 0:10:07.920 --> 0:10:09.800 How much are people going to be spurred to buy 0:10:09.840 --> 0:10:11.400 this on a health focus? 0:10:13.120 --> 0:10:15.240 So I don't know if they're necessarily going to buy 0:10:15.240 --> 0:10:16.160 it on the health focus. 0:10:16.200 --> 0:10:16.920 What I think is. 0:10:16.920 --> 0:10:19.000 Really going to happen and what the real win is 0:10:19.040 --> 0:10:22.480 for Apple is the concept of the continuous upgrade cycle. 0:10:22.840 --> 0:10:25.240 Once I get that AirPod in, I figured out that 0:10:25.360 --> 0:10:27.360 I have a hearing issue or that I can have 0:10:27.440 --> 0:10:30.200 better quality hearing with this, I think that's a game 0:10:30.320 --> 0:10:34.679 changer in terms of continual use and constant upgrades. I 0:10:34.720 --> 0:10:37.040 do think it's an issue for the hearing aid manufacturers. 0:10:37.040 --> 0:10:38.440 I mean, one of the things that We've always had 0:10:38.480 --> 0:10:40.680 an issue with is do people want to feel like 0:10:40.720 --> 0:10:44.679 they're wearing health devices. These are just AirPods, right, Nobody 0:10:44.720 --> 0:10:46.360 knows if it's a hearing aid or not. So I 0:10:46.360 --> 0:10:49.199 think there's a lot of opportunity for that. I also 0:10:49.320 --> 0:10:52.160 just find the usability. Think about not needing the change 0:10:52.160 --> 0:10:54.800 of battery as an elderly person, you just have easy 0:10:54.920 --> 0:10:57.840 charging capability. I think it could be a huge win 0:10:58.280 --> 0:11:01.679 for people that need to have better hearing. 0:11:02.800 --> 0:11:05.440 Marrabo, it was interesting that inside the Steve Jobs Theater, 0:11:05.559 --> 0:11:09.240 the most audible sort of gasps and excitement was around 0:11:09.520 --> 0:11:14.160 watch and airports in parts specifically sleep ATNA and hearing aid. 0:11:14.559 --> 0:11:16.840 We talk about wearables as kind of the jumping in 0:11:16.960 --> 0:11:20.040 point because actually the hardware costs less than the smartphone 0:11:20.520 --> 0:11:22.840 and lowers the barrier to entry. How do you model 0:11:22.880 --> 0:11:26.000 that for the success of Apple's ecosystem? 0:11:26.760 --> 0:11:29.959 So when I think about Apple, it is a portfolio approach, right, 0:11:30.000 --> 0:11:32.320 you have a phone, you have a smart device. But 0:11:32.400 --> 0:11:35.520 I think the real win for Apple, what they're very 0:11:35.559 --> 0:11:38.679 good at, is that all these things work together, and 0:11:38.720 --> 0:11:41.760 the more of you you have, the better your life becomes. 0:11:41.800 --> 0:11:44.000 And I think they really try to ugur in on 0:11:44.400 --> 0:11:46.120 we can help you with your health, we can help 0:11:46.160 --> 0:11:48.000 you with fitness, we can help you with problems that 0:11:48.080 --> 0:11:50.520 you didn't even know you had, and all of that's 0:11:50.559 --> 0:11:54.920 attached to the personalization of you and kind of taking 0:11:54.960 --> 0:11:58.079 what we talked about as that AI and really trying 0:11:58.080 --> 0:12:00.960 to make that AI relevant in someone's life. So I 0:12:01.000 --> 0:12:04.520 think moving forward, we're going to continue to see that 0:12:04.600 --> 0:12:07.240 the health market is going to be one of the 0:12:07.320 --> 0:12:09.840 drivers for Apple revenue moving forward. 0:12:10.760 --> 0:12:15.080 A lot of this was about what's inside of the 0:12:15.120 --> 0:12:18.400 Apple I phone, because it hasn't changed that much extensibly. 0:12:17.880 --> 0:12:18.679 From the outside. 0:12:18.800 --> 0:12:21.320 What has changed on the outside is what's going on 0:12:21.360 --> 0:12:25.760 in China Huawei. We see a trifold phone. How much 0:12:25.800 --> 0:12:28.720 do we see innovation from a hardware perspective coming from China. 0:12:30.400 --> 0:12:33.240 We actually see quite a bit of innovation coming from China. 0:12:33.440 --> 0:12:36.559 What I think is very interesting is that Apple continues 0:12:36.600 --> 0:12:40.160 to have the perspective that the foldable phone is not 0:12:40.360 --> 0:12:43.720 something that they need to participate in. Clearly, a trifle 0:12:43.840 --> 0:12:47.160 phone is an innovation. The timing of the Huawei launch 0:12:47.520 --> 0:12:50.520 was really important to try to create some of that 0:12:50.800 --> 0:12:54.200 fear and uncertainty in Apple's presence in China, and I 0:12:54.240 --> 0:12:57.000 actually think it accomplished that. But the reality of the 0:12:57.040 --> 0:13:00.920 situation is foldable devices are very expensive. It's been a 0:13:00.960 --> 0:13:03.640 limited market for some time. Samsung has been pushing that 0:13:03.760 --> 0:13:05.920 rock up the hill for quite a while, and it 0:13:05.960 --> 0:13:09.040 has also not made that break. So it makes perfect 0:13:09.040 --> 0:13:11.600 sense to me. If you're looking at a mainstream market, 0:13:11.760 --> 0:13:14.200 then foldability isn't going to be where it's at. But 0:13:14.200 --> 0:13:17.400 if you want to talk tech factor cool, fold ability 0:13:17.440 --> 0:13:18.640 is absolutely that. 0:13:19.640 --> 0:13:23.880 Parabell Lopez, principal analyst at Lopez Research, wonderful take Thank you. 0:13:24.320 --> 0:13:26.560 Coming up, we're going to be joined by Rubric CEO 0:13:26.720 --> 0:13:29.320 if we'll seener for a conversation on the firm's earnings 0:13:29.760 --> 0:13:31.480 doubts around growth in the second half. 0:13:31.520 --> 0:13:32.800 Is that what's pulling the shares lower. 0:13:33.400 --> 0:13:52.480 This is putting big technology. 0:13:50.240 --> 0:13:50.400 Too. 0:13:50.559 --> 0:13:52.840 Notable calls from the cell side this morning, first out 0:13:52.880 --> 0:13:56.839 DA Davidson initiating coverage and Alphabet with a neutral recommendation, 0:13:56.920 --> 0:14:01.400 the analysts highlighting numerous headwinds within the company's core search business. 0:14:01.600 --> 0:14:04.120 And our second goal comes from Deutship Bank naming Tesla 0:14:04.480 --> 0:14:07.720 it's top pick within the auto sector, noting that shares 0:14:07.760 --> 0:14:12.360 deserve a unique valuation, giving its potential to reshape business 0:14:12.360 --> 0:14:14.839 models across multiple industries. 0:14:14.920 --> 0:14:17.440 Caart, do have another stock that we should be looking at, 0:14:17.520 --> 0:14:20.560 Rubric posting a thirty five percent gain in revenue. 0:14:20.640 --> 0:14:21.680 Raising for your guidance. 0:14:21.760 --> 0:14:24.280 Yeah, shares are off six percent, joining us now to 0:14:24.320 --> 0:14:26.880 dive in as Rubric CEO before seen. Now who you 0:14:26.920 --> 0:14:29.760 know must be looking at the stock with some surprise. 0:14:30.120 --> 0:14:33.840 You've got analysts such as Guggenheim saying you significantly outperformed 0:14:33.880 --> 0:14:37.200 on all key metrics, but Bloomberg Intelligence they're flagging. Perhaps 0:14:37.240 --> 0:14:40.080 some questions around growth dynamics in the second half. 0:14:40.120 --> 0:14:40.880 Can you speak to that. 0:14:42.080 --> 0:14:45.000 Thank you, Caroline for this opportunity. Look, I leave this 0:14:45.160 --> 0:14:49.200 stock to the expert. But we are building a long 0:14:49.280 --> 0:14:51.320 term business and if you look at the growth and 0:14:51.400 --> 0:14:54.280 a very important market that is cyber resilience. We grew 0:14:54.360 --> 0:14:58.800 forty percent year over year on our subscription era to 0:14:58.840 --> 0:15:01.320 over nine hundred million. I mean we are growing at 0:15:01.320 --> 0:15:05.920 this speed at that scale. And last quarter we beat 0:15:05.960 --> 0:15:09.720 the quarter handsomely. Q two, then quarter before we beat 0:15:09.760 --> 0:15:13.040 the quarter handsomely. We are continuing to outperform both on 0:15:13.160 --> 0:15:18.200 top line and our profitability metrics, and this quarter we 0:15:18.240 --> 0:15:20.240 also raise the guidance for the rest of the year. 0:15:20.320 --> 0:15:22.320 So we are very bullish about what is in front 0:15:22.360 --> 0:15:24.960 of us. We are confident in our execution, what we 0:15:25.000 --> 0:15:27.840 see and we want. We'll finish our years strong. 0:15:29.280 --> 0:15:31.560 Before in the context is like what Rubric actually does. 0:15:31.640 --> 0:15:36.120 It seems like when enterprises invest more in cloud or 0:15:36.160 --> 0:15:38.880 shift to the cloud, there's a benefit that you derive 0:15:38.960 --> 0:15:42.000 from that. Could you explain the basics of that relationship 0:15:42.080 --> 0:15:44.080 and those mechanics. 0:15:44.280 --> 0:15:46.960 As more in board businesses and governments have realized that 0:15:47.240 --> 0:15:51.240 just doing cyber prevention will not allow them to run 0:15:51.280 --> 0:15:53.800 their business when there is a successful cyber attack. Because 0:15:53.840 --> 0:15:57.960 cyber attacks are inevitable. They are all thinking about cyber resilience. 0:15:58.000 --> 0:16:00.320 How do they continue to run their business win in 0:16:00.320 --> 0:16:03.320 presents of attacks? How do hospitals continue to admit patients? 0:16:03.800 --> 0:16:06.760 Banks continue to dole out money? And that's what we do. 0:16:06.800 --> 0:16:10.600 We help businesses ensure that their applications are running and 0:16:10.640 --> 0:16:13.480 applications could be in their enterprise, could be in the 0:16:13.520 --> 0:16:16.440 SaaS could be in the cloud. And as businesses are 0:16:16.480 --> 0:16:20.240 doing more digital transformation to gain productivity, cyber is the 0:16:20.360 --> 0:16:24.200 number one rest and ability to run their services all 0:16:24.240 --> 0:16:27.080 the time. Irrespective of successful cyber attack is what we 0:16:27.160 --> 0:16:31.400 help their businesses with. So more cloud transformation, more SaaS adoption, 0:16:31.560 --> 0:16:34.920 more digital transformation is actually helping our business. 0:16:35.840 --> 0:16:39.960 People switching gear, Sally, I think we asked you, let's 0:16:40.000 --> 0:16:42.520 say a dozen times over the course of a year 0:16:43.000 --> 0:16:46.680 when you were going to go public, and eventually it happens, 0:16:46.840 --> 0:16:48.720 and it feel like it all happened quite fast. So 0:16:48.720 --> 0:16:51.040 I just wanted to ask what it's like being a 0:16:51.040 --> 0:16:53.080 public company and how that you think that's going. 0:16:54.680 --> 0:16:57.920 It's going great as a public company. But for me 0:16:57.960 --> 0:17:00.600 as a CEO, there is no real different friends other 0:17:00.720 --> 0:17:04.520 than reporting to public market and doing callbacks with our stakeholders, 0:17:04.920 --> 0:17:07.639 because from the day one of the company, we wanted 0:17:07.680 --> 0:17:09.920 to build a long term company, a company that lasts 0:17:09.960 --> 0:17:13.040 longer than my own professional career in life. And there's 0:17:13.080 --> 0:17:15.400 no difference in terms of how we build our product, 0:17:15.440 --> 0:17:18.480 how we think about the next chapter of Rubric. We 0:17:18.520 --> 0:17:20.840 are coming up on a billion dollar that we actually 0:17:20.840 --> 0:17:23.560 guided to thinking about how do we go to three 0:17:23.600 --> 0:17:26.800 billion and beyond what are the product configurations that we 0:17:26.840 --> 0:17:30.200 do today so that we have high acceleration four years 0:17:30.240 --> 0:17:33.080 down the line. That's how we think as a business, 0:17:33.119 --> 0:17:36.119 and there's no real change in how we operate our business. 0:17:36.320 --> 0:17:37.240 Since you've gone public. 0:17:37.359 --> 0:17:42.719 Though we had the most major global IT outage and 0:17:42.760 --> 0:17:47.439 everyone started thinking about resiliency all over again now today, 0:17:47.440 --> 0:17:51.080 in fact, I think Microsoft is currently hosting a cybersecurity 0:17:51.240 --> 0:17:53.959 summit for the first time since that outage with government 0:17:53.960 --> 0:17:57.560 participation to really get their learnings. People, how many customers 0:17:57.560 --> 0:17:59.520 did you suddenly sign from that event? How have you 0:17:59.560 --> 0:18:02.320 seen the market shift after it? 0:18:02.320 --> 0:18:05.960 It was an unfortunate event, but it actually previewed what 0:18:06.040 --> 0:18:09.400 a real cyber attack could do to our digital, interconnected 0:18:09.440 --> 0:18:12.639 global economy, and it really, as you mentioned, brought the 0:18:12.680 --> 0:18:15.840 discussion of resilience at the top. And so we are 0:18:15.880 --> 0:18:19.520 seeing a lot of CIOs and board of directors and 0:18:19.560 --> 0:18:23.040 csows and CEOs having this conversation that how do we 0:18:23.160 --> 0:18:26.200 keep our businesses up and running irrespective of what happens. 0:18:26.440 --> 0:18:30.639 So we are definitely seeing anecdotal evidence of like a 0:18:30.680 --> 0:18:34.000 renewed interest, renewed focus, and cyber resilience is the number 0:18:34.040 --> 0:18:36.960 one topic in cybersecurity, but this is one of the 0:18:37.000 --> 0:18:39.239 many factors and over time it will be clear how 0:18:39.280 --> 0:18:46.280 much impacts it does to actual demand and top line people. 0:18:46.359 --> 0:18:51.119 Very simply did you get invited to this summit that 0:18:51.200 --> 0:18:53.640 Microsoft's hosting and what are you hearing about it? 0:18:54.600 --> 0:18:57.840 We have a great partnership with Microsoft. In fact, they 0:18:57.840 --> 0:19:01.240 gave us a Healthcare Partner of the Year because we 0:19:01.320 --> 0:19:04.760 are really going after protect the unprotected, which is the 0:19:04.800 --> 0:19:09.320 healthcare segment of the market. And obviously Microsoft is very 0:19:09.320 --> 0:19:13.320 serious about cybersecurity. If you look at the number of 0:19:13.359 --> 0:19:15.840 initiatives that they are doing, number of partnerships that we 0:19:15.880 --> 0:19:18.720 are creating with microsoftware. We are bringing the cyber resilience, 0:19:18.720 --> 0:19:21.840 They are bringing the cloud and infrastructure security, and together 0:19:22.160 --> 0:19:25.080 we are delivering end to end security. So as far 0:19:25.119 --> 0:19:28.200 as Microsoft is concerned, our partnership around security is very 0:19:28.240 --> 0:19:30.120 strong and they are quite serious about it. 0:19:30.760 --> 0:19:34.240 What about global growth more broadly before and where are 0:19:34.280 --> 0:19:38.720 you seeing CEOs CSOs willing to spend at this moment? 0:19:40.600 --> 0:19:43.520 So I was in Asia three four weeks ago and 0:19:43.680 --> 0:19:46.560 spent almost a week in Japan. And if you look 0:19:46.600 --> 0:19:50.359 at a country like Japan, which is a large industrial economy, 0:19:50.359 --> 0:19:53.680 they are also undertaking digital transformation because they want to 0:19:53.680 --> 0:19:56.879 gain productivity. They want to have this whole digital moment 0:19:56.920 --> 0:19:59.560 for themselves. And the number one concern for Their digital 0:19:59.600 --> 0:20:06.239 transform is cybersecurity because in a manufacturing oriented economy, if 0:20:06.320 --> 0:20:09.240 you have digital disruption because of cyber attacks, I mean 0:20:09.280 --> 0:20:12.159 the whole economy could come to stand still, or the 0:20:12.160 --> 0:20:15.640 whole company could come to stand still. So folks are 0:20:15.800 --> 0:20:21.200 very serious about investing in cybersecurity, particularly around cyber resilience, 0:20:21.440 --> 0:20:23.640 because they have done a lot of investment in prevention 0:20:23.720 --> 0:20:26.680 of attack, but they're not able to prevent the unpreventable. 0:20:27.119 --> 0:20:29.720 So the focus is how do I keep my services 0:20:29.800 --> 0:20:32.400 up and running, how do I ensure that I confidently 0:20:32.440 --> 0:20:34.160 do digital transformation and. 0:20:34.119 --> 0:20:38.560 More BRICO people saying yea, it's great to have you 0:20:38.600 --> 0:20:41.080 back here on Booming Back Technology. Thank you very much. 0:20:49.280 --> 0:20:52.160 It's time for talking tech. And first off, Amazon's Audible 0:20:52.359 --> 0:20:56.400 is set to begin selecting US based narrators to help 0:20:56.440 --> 0:20:59.919 train AI their own voices. The company plans to use 0:21:00.080 --> 0:21:04.439 cloned voices to quickly and cheaply increase their audiobook offerings. 0:21:04.480 --> 0:21:07.520 Amazon currently offers the option for self published authors to 0:21:07.600 --> 0:21:11.200 use a generic virtual voice narration for their works. Plus 0:21:11.240 --> 0:21:13.840 shares of Avali Barber rising in Hong Kong trading. This 0:21:14.280 --> 0:21:16.480 is the e commerce giant made its stock debut to 0:21:16.560 --> 0:21:19.720 investors from mainland China. For the first time, shares of 0:21:19.760 --> 0:21:22.840 Vali Barber were added to the stock connect program that 0:21:22.880 --> 0:21:25.800 linked Shanghai and Shenzen with the Hong Kong Exchange. The 0:21:25.840 --> 0:21:29.400 stock rose four point two percent, the most since August sixteen, 0:21:29.640 --> 0:21:32.639 and a sigh of relief for AI investors. TSMC revenue 0:21:32.680 --> 0:21:35.880 rows thirty three percent in August for sales reaching seven 0:21:35.920 --> 0:21:39.000 point eight billion dollars, Taiwan's largest company, now making more 0:21:39.000 --> 0:21:42.600 than half of its revenue from high performance computing driven 0:21:42.640 --> 0:21:45.600 by AI demand for the third quarter, and this expect 0:21:45.600 --> 0:21:49.080 TSMC's revenue to grow thirty seven percent. 0:21:49.200 --> 0:21:49.520 Correct. 0:21:49.840 --> 0:21:51.919 Let's just check in some stocks again and ed you 0:21:51.920 --> 0:21:54.560 referenced this earlier Tesla having a very good day one 0:21:54.600 --> 0:21:57.280 of the biggest points to the higher side for the Nasdaq, 0:21:57.359 --> 0:21:59.600 Deutsche Bank naming the ev maker it's top pic with 0:21:59.640 --> 0:22:04.119 auto sector. Also and interestingly, the EU maybe actually reducing 0:22:04.160 --> 0:22:06.520 those tariffs on Tesla's and other evs from China. 0:22:06.640 --> 0:22:08.560 Interesting as we get that news on Google and Apple 0:22:08.600 --> 0:22:09.439 from the EU today. 0:22:10.200 --> 0:22:13.199 And i'd also point out it's thirty days until Robotaxi 0:22:13.280 --> 0:22:15.760 Day and elon Musk if you're watching, I'm still waiting 0:22:16.200 --> 0:22:18.119 on my invite, La. 0:22:18.400 --> 0:22:20.919 You come, We're coming up. It's the first ever private 0:22:20.960 --> 0:22:24.040 spacewalk mission for SpaceX. I'll have all the details on 0:22:24.080 --> 0:22:24.840 today's launch. 0:22:25.000 --> 0:22:40.040 That's next. This is Blue Big Technology. Welcome back to 0:22:40.080 --> 0:22:41.000 Bloomberg Technology. 0:22:41.040 --> 0:22:43.520 I'm Caroline Hyde, New York and our medlad Low in 0:22:43.520 --> 0:22:44.200 San Francisco. 0:22:44.480 --> 0:22:47.080 Quick check on these markets for yeah, because we're trying 0:22:47.520 --> 0:22:49.560 to remain risk on. It will feel on the day. 0:22:49.560 --> 0:22:51.480 We're up five tens of a percent. Let's call it 0:22:51.520 --> 0:22:54.000 on then as that one hundred after remember a decent 0:22:54.040 --> 0:22:57.120 woman in one percentage point game yesterday, So riding high 0:22:57.200 --> 0:22:59.440 even though we got the anxiety of an inflation print 0:22:59.440 --> 0:23:02.280 and of course a presidential debate that comes later tonight. 0:23:02.520 --> 0:23:03.800 The tenure yield, they're getting a bid. 0:23:03.800 --> 0:23:05.880 Maybe there is some anxiety and we're wanting to get 0:23:05.880 --> 0:23:09.159 into some of these well more haven trades, that is 0:23:09.160 --> 0:23:11.439 the bond market. Despite we've got some auctions coming up. 0:23:11.440 --> 0:23:13.320 We're down some three four basis points. Let's call it 0:23:13.320 --> 0:23:15.720 on the tenure. Looking at Bitcoin, just catching a slight 0:23:15.720 --> 0:23:17.640 bid up two tens percent. It's been a bit volatile 0:23:17.640 --> 0:23:18.879 on the day. Move on and have a look at 0:23:18.880 --> 0:23:21.760 the individual movers because it's a day of micro news today. 0:23:21.840 --> 0:23:24.560 Apple drag lower off of it's lows, but still trading 0:23:24.560 --> 0:23:26.520 three tens percent to the downside. 0:23:26.640 --> 0:23:27.880 After well, we're still. 0:23:27.680 --> 0:23:30.640 Wondering what appen intelligence really comes and what it means 0:23:30.680 --> 0:23:33.920 for sales with the new iPhone sixteen. But it loses 0:23:33.960 --> 0:23:35.760 that fight it had with the EU over at more 0:23:35.760 --> 0:23:38.840 than few fourteen billion dollar tax debt that they owe. 0:23:39.160 --> 0:23:41.800 Of course they have preferential treatment coming from Ireland. EU 0:23:41.840 --> 0:23:44.479 says we still want that money. Look Bloomberg Intelligence other 0:23:44.520 --> 0:23:46.560 Ana is saying, this isn't going to affect the business 0:23:46.600 --> 0:23:48.480 from a fundamental business, one of the few ones that 0:23:48.480 --> 0:23:51.520 could afford it. But Google also loses its fight and 0:23:51.560 --> 0:23:54.560 more than two billion one in terms of exerting its power, 0:23:54.560 --> 0:23:56.960 it would seem when it comes to e commerce and 0:23:57.000 --> 0:24:00.520 its own search platform. And look once again May it's owing. 0:24:00.520 --> 0:24:03.320 They're both disappointed. We understand. Let's have a look at 0:24:03.359 --> 0:24:06.919 Oracle though record high for the stock up more than well, 0:24:07.000 --> 0:24:10.040 let's call it twelve percent. Now AI a driving force 0:24:10.119 --> 0:24:11.720 in terms of cloud what are you watching it? 0:24:13.160 --> 0:24:18.040 Well? Earlier today SpaceX launched a rocket carrying four private 0:24:18.040 --> 0:24:19.399 astronauts to space. 0:24:25.119 --> 0:24:26.040 Got you one alf. 0:24:28.720 --> 0:24:29.359 Do you fought us? 0:24:29.400 --> 0:24:31.880 You can be on range. 0:24:32.880 --> 0:24:35.760 Flying crew on board Dragon and Falcon nine of New Heights, 0:24:39.520 --> 0:24:42.800 all part of a groundbreaking mission aimed at performing the 0:24:42.800 --> 0:24:48.520 world's first commercial spacewalk. After a number of days of delay, Carrow, 0:24:48.880 --> 0:24:51.240 the Polarist Dawn mission is underway. 0:24:51.720 --> 0:24:55.480 Jared isaacman billionaire, happens to run a company also now 0:24:55.520 --> 0:24:58.440 in space. It would seem just remind us why the 0:24:58.560 --> 0:25:00.400 spacewalk is so ground king. 0:25:01.400 --> 0:25:03.919 Yeah, I think that it just hasn't been done before. 0:25:03.960 --> 0:25:08.000 And the point of Jared's ambition to go back to space, 0:25:08.040 --> 0:25:11.000 because remember he was part of the Inspiration four crew, 0:25:11.560 --> 0:25:15.800 is he is this adrenaline junkie billionaire. He is bankrolling 0:25:15.840 --> 0:25:20.040 this threat thing in partnership with SpaceX. He's fascinated by 0:25:20.440 --> 0:25:23.679 pushing the boundary of technology but also sort of human 0:25:23.800 --> 0:25:27.240 kinds achievements in space. I'd also point out like he's 0:25:27.240 --> 0:25:30.080 not alone up there. He's with Sarah Gillison and Ana Mennon, 0:25:30.160 --> 0:25:34.080 two very senior SpaceX engineers who go as mission spen 0:25:34.640 --> 0:25:38.080 specialist and medical officer respectively. On the right. Scott Petite, 0:25:38.280 --> 0:25:42.160 mission pilot, is Jared's best friend, essentially another adrenaline junkie 0:25:42.320 --> 0:25:43.960 and fighter jet pilot. 0:25:44.160 --> 0:25:47.360 And Sarah and Jered they're the ones that are going 0:25:47.400 --> 0:25:52.360 to open the hatch, walk on out and make history. 0:25:52.600 --> 0:25:56.240 Ultimately, what's different about this space walk is not just 0:25:56.280 --> 0:25:58.639 the sort of altitude that they'll do it at, but 0:25:58.680 --> 0:26:02.159 also the mechanism kind of used to historic pictures of 0:26:02.240 --> 0:26:05.560 spacewalks on the outside of the ISS where they have 0:26:05.800 --> 0:26:08.880 a air lock and they're tethered up. This time they'll 0:26:08.920 --> 0:26:10.560 be tethered up, but the only way to do it 0:26:10.600 --> 0:26:13.600 inside the Dragon capsule is to open up the hatch. 0:26:13.840 --> 0:26:15.480 So it means that the two of them will go 0:26:15.560 --> 0:26:19.000 out one by one, but there'll be a vacuum inside 0:26:19.080 --> 0:26:21.760 the capsule itself, meaning that the other two who are 0:26:21.760 --> 0:26:24.160 not doing the spacewalk also have to sort of don 0:26:24.280 --> 0:26:28.199 these specialist suits and just sit in there, floating in 0:26:28.240 --> 0:26:31.360 a vacuum. And then when the two return, hopefully they 0:26:31.359 --> 0:26:36.520 close the hatch, repressurize and add oxygen to the chamber, 0:26:36.600 --> 0:26:39.400 and all being well and equal, they'll come home. 0:26:40.720 --> 0:26:41.360 Let's hope. 0:26:41.840 --> 0:26:45.080 Now we want to turn from one race, the space race, 0:26:45.119 --> 0:26:48.280 to another one to the White House. Presidential nominee Kamala Harris. 0:26:48.320 --> 0:26:51.600 Of course, VP and Donald Trump are set to debate stage. 0:26:51.800 --> 0:26:53.960 Set to debate on the stage later tonight at nine 0:26:53.960 --> 0:26:57.520 pm Eastern. For more, let's bringing Katie Lines, who joins. 0:26:57.400 --> 0:27:02.360 US and Kayleie Technology Show. Is it corporate tax for us? 0:27:02.720 --> 0:27:03.440 Is it? Well? 0:27:03.520 --> 0:27:07.400 The focus on innovation? Anything you think we might get, well, 0:27:07.440 --> 0:27:08.760 you could get some on innovation. 0:27:08.960 --> 0:27:12.040 Investing in US innovation is actually something both of these 0:27:12.440 --> 0:27:14.800 campaigns have talked about. There is a whole segment in 0:27:14.840 --> 0:27:18.080 that regard on Kamala Harris's policy Paige the issues page 0:27:18.119 --> 0:27:19.879 on her website, so you could get some of that. 0:27:19.920 --> 0:27:22.439 Donald Trump may even bring crypto into the conversation, as 0:27:22.480 --> 0:27:24.840 he has been talking about that more and more given 0:27:24.880 --> 0:27:28.159 the money the crypto industry is throwing into this election cycle. 0:27:28.160 --> 0:27:30.680 He wants to make America the crypto capital of the world, 0:27:30.760 --> 0:27:33.520 he says, But for business as a whole, beyond just technology, 0:27:33.560 --> 0:27:36.719 they of course will be affected by things like taxes too. 0:27:36.800 --> 0:27:39.560 Kamala Harris obviously wants to raise the corporate tax rate 0:27:39.800 --> 0:27:42.359 to twenty eight percent. She also wants to lift to 0:27:42.400 --> 0:27:45.280 twenty eight percent the tax on long term capital gains 0:27:45.280 --> 0:27:48.680 for those making over a million dollars. She of course 0:27:48.720 --> 0:27:52.400 hasn't specifically said anything about unrealized capital gains, although Donald 0:27:52.440 --> 0:27:54.719 Trump has accused her of that, it is true. Her 0:27:54.800 --> 0:27:57.560 campaign initially said it supported a number of policy ideas 0:27:57.560 --> 0:28:00.680 in the President Biden's last budget proposal, which included a 0:28:00.800 --> 0:28:03.240 tax on unrealized capital gains for those making over one 0:28:03.280 --> 0:28:06.000 hundred million dollars a year who had less than twenty 0:28:06.000 --> 0:28:07.600 five percent tax rate on their income. 0:28:07.600 --> 0:28:08.760 But she has an outright. 0:28:08.480 --> 0:28:10.920 Said that that is not on her policy platform, and 0:28:10.960 --> 0:28:15.000 of course she wants to raise taxes on regular capital 0:28:15.040 --> 0:28:17.080 gains for those making over a million dollars and help 0:28:17.520 --> 0:28:19.760 to fund some of her other initiatives, including down payment 0:28:19.800 --> 0:28:23.760 assistants for first time home buyers and no tax on tips, 0:28:23.840 --> 0:28:25.600 that kind of thing. Donald Trump, of course, wants to 0:28:25.600 --> 0:28:27.880 cut the corporate tax rate for companies that make things 0:28:27.920 --> 0:28:30.760 in America down to fifteen percent, and also wants to 0:28:30.800 --> 0:28:33.200 make permanent his twenty seventeen tax cuts. All of those 0:28:33.240 --> 0:28:36.600 proposals are estimated to cost about ten and a half 0:28:36.640 --> 0:28:39.280 trillion dollars over the next ten years, and there just 0:28:39.320 --> 0:28:42.880 simply isn't enough non defense discretionary spending projected over the 0:28:42.960 --> 0:28:44.360 next ten years to pay. 0:28:44.200 --> 0:28:47.320 For that, and he also wants to cut government spending 0:28:47.400 --> 0:28:49.280 or make it more efficient with the help of one 0:28:49.640 --> 0:28:50.720 Elon musk Helly. 0:28:50.760 --> 0:28:51.360 In my more. 0:28:51.200 --> 0:28:54.560 Limited experience of presidential debates, having only lived in this 0:28:54.600 --> 0:28:58.160 country since twenty eighteen, the news cycle also kind of 0:28:58.200 --> 0:29:01.520 informs what they'll discuss. Sometimes you have the idea of 0:29:02.080 --> 0:29:05.680 a sovereign wealth fund in the headlines, and you've kind 0:29:05.720 --> 0:29:09.560 of outlined cryptso just is there a stage of what 0:29:09.600 --> 0:29:12.480 we'll be asked and the key battleground. 0:29:13.480 --> 0:29:17.040 Well, no questions have actually been told of the candidates 0:29:17.120 --> 0:29:19.720 or to us ABC, and those moderators are keeping them 0:29:20.040 --> 0:29:21.840 close to the chest. That is part of the rules 0:29:21.880 --> 0:29:23.800 for this debate, including of course the rule that the 0:29:23.840 --> 0:29:26.560 microphone will be off for the candidate whose turn it 0:29:26.600 --> 0:29:29.680 is not to speak, which will be an interesting dynamic there. 0:29:29.680 --> 0:29:32.760 But yeah, you're right, news does indeed drive questioning often 0:29:32.800 --> 0:29:35.080 on the sovereign wealth fund. We're getting that, frankly from 0:29:35.480 --> 0:29:37.880 both the Democrat and Republican sides of the aisle. First, 0:29:37.880 --> 0:29:40.280 Donald Trump floated a US sovereign wealth fund at the 0:29:40.280 --> 0:29:43.320 Economic Club of New York last week. Then Bloomberg reported 0:29:43.760 --> 0:29:45.840 just a day later that this is actually something that 0:29:45.840 --> 0:29:49.959 Biden needs, including Jake Sullivan have also been pursuing. That 0:29:50.120 --> 0:29:52.280 is a question of how exactly that would be funded. 0:29:52.320 --> 0:29:54.800 We don't know those details yet. Donald Trump has suggested 0:29:55.280 --> 0:29:58.320 it could be funded and perhaps by tariffs, and tariffs 0:29:58.360 --> 0:30:00.520 of course is another thing we expect could come up 0:30:00.560 --> 0:30:02.360 on the stage tonight, as Donald Trump has floated a 0:30:02.360 --> 0:30:05.120 blanket tariff on all US imports potentially of ten percent, 0:30:05.160 --> 0:30:08.840 and even higher tariffs on China. And China of course 0:30:08.880 --> 0:30:10.920 gets us to the foreign policy aspects that could be 0:30:10.920 --> 0:30:13.000 present in this debate as well, not just on China, 0:30:13.000 --> 0:30:15.040 but the ongoing war between Russia and Ukraine. Of course, 0:30:15.080 --> 0:30:17.800 perhaps most difficulty for Kamala Harris in particular as the 0:30:17.840 --> 0:30:21.200 vice president of this Biden administration, could be questions around 0:30:21.280 --> 0:30:24.000 Israel and the ongoing war in Gaza, and of course 0:30:24.120 --> 0:30:26.760 here domestically, it's the economy always. 0:30:27.720 --> 0:30:29.280 Bloomba's Kaylee Lynes, thank. 0:30:29.160 --> 0:30:29.719 You very much. 0:30:37.440 --> 0:30:38.840 Time now for our VC roundup. 0:30:38.840 --> 0:30:42.600 First up, Singapore based firm Genesis Alternative Ventures, a private 0:30:42.640 --> 0:30:45.080 lender to venture and growth stage companies, has closed its 0:30:45.160 --> 0:30:47.760 second debt fund and the lower end of its target. 0:30:47.840 --> 0:30:50.960 That's as global investors remain somewhat cautious about Southeast Asia's 0:30:50.960 --> 0:30:53.040 startup industry, and the firm is raised one hundred and 0:30:53.080 --> 0:30:56.160 twenty five million for the fund, securing new investors including 0:30:56.240 --> 0:31:00.280 Japan's Mazoo Home Bank and Israel's our Crowd plus Amco. 0:31:00.320 --> 0:31:03.000 It's a London based bench firm that has backed fintech diling, 0:31:03.040 --> 0:31:05.760 Stripe and Karana. It's raised one point two four billion 0:31:05.760 --> 0:31:08.719 dollars for two new funds. The dual fund strategy includes 0:31:08.760 --> 0:31:11.720 its first dedicated arm for growth capital and acts as 0:31:11.760 --> 0:31:14.800 a response to a dearth of late stage technology financing 0:31:14.800 --> 0:31:18.160 in Europe. According to the firm, CEO and Exo Watt 0:31:18.240 --> 0:31:20.840 is a startup backed by open Ay. Sam Altman, just 0:31:20.920 --> 0:31:24.760 launched a modular system to generate, store, and dispatch clean 0:31:25.000 --> 0:31:28.280 energy to data centers. So the startup is relatively new, 0:31:28.360 --> 0:31:30.320 it already has a demand backlog of some one point 0:31:30.360 --> 0:31:32.600 two gigawatts from some of the world's largest data center 0:31:32.640 --> 0:31:35.280 operators and wind and solar developers. 0:31:35.800 --> 0:31:40.160 Ed another story, Lara Belle, an open source startup in Arkansas, 0:31:40.200 --> 0:31:43.479 just raised fifty seven million dollars from Excel and Excel 0:31:43.600 --> 0:31:45.920 partner Mars Clements, who led this investment joins us here 0:31:45.960 --> 0:31:48.440 in San Francisco. Curiously enough, I've got a bit of 0:31:48.520 --> 0:31:50.800 experience covering tech in Arkansas. I've spoken a lot with 0:31:50.840 --> 0:31:55.200 like Stuart Walton and the up partnership who kind of 0:31:55.240 --> 0:31:57.600 like wanted to be a tech club. I was surprised 0:31:57.600 --> 0:31:59.720 to see the headline tell me about the round and 0:31:59.760 --> 0:32:01.680 a bit about the company and also the state. 0:32:02.120 --> 0:32:04.160 Yeah, sure thing, So the accent was not a dead 0:32:04.160 --> 0:32:06.320 giveaway for Little Rock, Arkansas. But I'm glad to know 0:32:06.360 --> 0:32:09.840 that you spend time in that tech ecosystem too. Larravel 0:32:10.080 --> 0:32:13.880 is an exceptional company founded by a really generational founder, 0:32:13.920 --> 0:32:17.000 Tailor Otwell. And the fact that it's in Little Rock, 0:32:17.040 --> 0:32:20.000 the fact that it is bootstrapped and profitable and really 0:32:20.040 --> 0:32:23.400 a company that controls its own destiny, is entirely consistent 0:32:23.440 --> 0:32:25.760 with what our growth investing strategy is at Excel and 0:32:25.880 --> 0:32:27.200 has been for sixteen years. 0:32:27.360 --> 0:32:32.600 Right, Miles, I'll bite you strap some profitable definition explanation. 0:32:32.840 --> 0:32:36.080 Yeah, sure thing. So we have this kind of peculiar 0:32:36.080 --> 0:32:39.080 growth investing strategy with fits which fits in with Excel 0:32:39.120 --> 0:32:42.080 strategy that we have devoid for forty years across all 0:32:42.120 --> 0:32:44.520 of our firm, which is that at the most fundamental level, 0:32:44.520 --> 0:32:46.520 we want to be the first partner the founder's turn 0:32:46.600 --> 0:32:49.080 to when they go to raise capital. Now, doing that 0:32:49.280 --> 0:32:52.320 requires a certain degree of flexibility. Some companies want to 0:32:52.360 --> 0:32:54.640 raise a million dollars in the heart of San Francisco 0:32:54.680 --> 0:32:56.840 in a seed round. Other companies want to raise a 0:32:56.880 --> 0:32:59.720 fifty seven million dollars bootstrap Series A, as was the case 0:32:59.760 --> 0:33:02.200 Wither in Little Rock, or I would point to a 0:33:02.240 --> 0:33:04.800 company like one Password, which raised a two hundred million 0:33:04.800 --> 0:33:07.320 dollars Series A in Toronto, which my partner a rou 0:33:07.440 --> 0:33:08.760 Matthew led a couple of years ago. 0:33:09.440 --> 0:33:13.720 One Password might see competition coming from well a pretty 0:33:13.880 --> 0:33:17.240 age old firm, favorite Silicon valley that is Apple. How 0:33:17.280 --> 0:33:21.240 are you seeing competition coming from the huge publicly traded 0:33:21.240 --> 0:33:24.080 companies and can there still be room for these startups? 0:33:25.160 --> 0:33:25.800 Absolutely? 0:33:26.160 --> 0:33:28.600 I mean the technology industry today is so humbling. There 0:33:28.640 --> 0:33:31.680 are so many great incumbents, there's so many great startups. 0:33:31.720 --> 0:33:34.520 You're seeing companies move at warp speed with the assistance 0:33:34.560 --> 0:33:37.080 of AI. But with that said, the companies that we 0:33:37.240 --> 0:33:42.200 really have built our growth practice around are just growing durably, sustainably, 0:33:42.360 --> 0:33:45.720 profitably at kind of a different cadence and It's a 0:33:45.760 --> 0:33:48.560 cadence of growth and a discipline that we really really 0:33:48.600 --> 0:33:50.920 appreciate and that we seek out when we spend time 0:33:50.960 --> 0:33:56.400 in geographies like Toronto with one Password, Sydney Australia with Alassian, 0:33:57.040 --> 0:33:58.800 probo Utah with qual Tricks, etc. 0:34:00.160 --> 0:34:00.719 We're humbled. 0:34:00.760 --> 0:34:04.600 We're always sort of paranoid and aware of the competition 0:34:04.680 --> 0:34:07.320 out there, but we think these companies are special in 0:34:07.360 --> 0:34:10.480 their ability to be durable and compound for decades at 0:34:10.480 --> 0:34:10.799 a time. 0:34:11.360 --> 0:34:14.360 It's interesting about open source, and we had Chi Discovery 0:34:14.360 --> 0:34:17.440 on yesterday just raised around that sort of open source 0:34:17.480 --> 0:34:22.319 large language model, particularly around biotech. Now, when you're thinking 0:34:22.400 --> 0:34:25.319 about the open source area you just mentioned AI. We 0:34:25.360 --> 0:34:27.359 think about open source a lot with AI, but you're 0:34:27.360 --> 0:34:32.320 actually talking about open source to build full stack web applications. 0:34:32.400 --> 0:34:35.080 When it comes to lavarel, what is the business model there? 0:34:35.080 --> 0:34:39.239 Because interestingly Chi Discovery didn't talk about how they go monetize. 0:34:39.520 --> 0:34:42.960 How already is Lavarell cloud monetizing right? 0:34:43.560 --> 0:34:46.120 Well, the thing that we love about open source, whether 0:34:46.200 --> 0:34:49.560 it is biotech and pharma or developer tooling, is that 0:34:49.600 --> 0:34:53.400 they tend to be rooted in these vibrant organic ecosystems. 0:34:53.480 --> 0:34:56.400 And if you are loyal and faithful to the ecosystem 0:34:56.440 --> 0:34:58.760 if you serve your company, your customers, and end users 0:34:58.760 --> 0:35:01.480 well over time. I think the best open source software 0:35:01.480 --> 0:35:04.919 companies in the world have demonstrated this win win capability 0:35:04.960 --> 0:35:08.520 of monetizing where you can build this revenue flywheel. But 0:35:08.560 --> 0:35:11.080 I think the best company is in open source invest 0:35:11.160 --> 0:35:13.960 the profits back into the ecosystem. They invest the profits 0:35:14.280 --> 0:35:17.080 back into enhancing the product roadmap. And that is exactly 0:35:17.160 --> 0:35:19.920 what Taylor wants to do with this capital that he's 0:35:20.040 --> 0:35:20.920 raised from Excel. 0:35:21.360 --> 0:35:22.120 It's seven million. 0:35:22.160 --> 0:35:26.160 You've also backed Versa and Century, so not unaccustomed to 0:35:26.160 --> 0:35:29.360 the open source area. Miles Climent's Excel partner, thanks for 0:35:29.440 --> 0:35:40.320 joining us today. Shares of Oracle all time his today 0:35:40.520 --> 0:35:43.839 that's his artificial intelligence demand continues to boost its cloud 0:35:43.880 --> 0:35:47.120 computing business, and there's some new agreements being made, for example, 0:35:47.160 --> 0:35:50.040 with Amazon Web Services to make intelligence. Senior analyst Ana 0:35:50.120 --> 0:35:53.120 Agrano joins us some more and Oracle managing to really 0:35:53.840 --> 0:35:55.960 focus on this new area of growth. 0:35:57.400 --> 0:35:59.640 Yeah. I think of this as the downstreaming effect and 0:35:59.680 --> 0:36:02.279 all the video sales that you're seeing, because at the 0:36:02.320 --> 0:36:04.160 end of the day, it's these cloud providers that are 0:36:04.200 --> 0:36:07.759 buying those GPUs and then in turn offering those services 0:36:07.800 --> 0:36:11.879 to clients to experiment on Genai to run new workloads. 0:36:12.080 --> 0:36:14.480 And that's really where Oracle is getting a lot of 0:36:14.480 --> 0:36:17.120 that bump. Not to mention the brand new deal that 0:36:17.120 --> 0:36:18.440 they have with AAWS. 0:36:19.080 --> 0:36:21.879 Well, let's jump on it. I don't understand the deal 0:36:21.880 --> 0:36:24.359 with AWS. I thought that for a long time they 0:36:24.360 --> 0:36:27.640 had some pretty frosty relations. Where does that work? And 0:36:27.680 --> 0:36:31.080 also that is this way about on prem versus not 0:36:31.160 --> 0:36:33.560 on prem which is a big part of Oracle's history, right. 0:36:34.560 --> 0:36:37.399 Yeah, Now, I was surprised to see this particular deal. 0:36:37.520 --> 0:36:39.000 I mean, I would say a year ago, I was 0:36:39.000 --> 0:36:41.520 surprised to see them do a deal with Microsoft and 0:36:41.520 --> 0:36:43.799 then again with Google. So a couple of things are 0:36:43.800 --> 0:36:47.000 happening over here. If I run an on premise application, 0:36:47.520 --> 0:36:51.120 it was theoretically possible for me to take that application 0:36:51.280 --> 0:36:54.440 up from my data center, move it to AWS, and 0:36:54.520 --> 0:36:57.640 at the same time run an Oracle database on it. 0:36:57.640 --> 0:37:00.640 It can be done, but it was expensive. Oracle was 0:37:00.640 --> 0:37:02.840 trying to say, well, if you want to run an application, 0:37:02.880 --> 0:37:05.200 why don't you come to my cloud, which is the 0:37:05.200 --> 0:37:08.480 oraticle cloud infrastructure, And that has been the friction. At 0:37:08.480 --> 0:37:12.440 the same time, the people want to train on the 0:37:12.520 --> 0:37:16.280 data that resides on the article database. So Articles figured 0:37:16.280 --> 0:37:19.440 out one thing that the end demand is so wide 0:37:19.840 --> 0:37:22.239 that they won't mind, you know, losing a little bit 0:37:22.280 --> 0:37:24.120 of money on one side or the other. In the 0:37:24.200 --> 0:37:27.080 net it will actually be beneficial for them if more 0:37:27.120 --> 0:37:29.719 of their databases move to the cloud. So I think 0:37:29.760 --> 0:37:32.960 for Oracle this may be actually helpful for their database 0:37:33.000 --> 0:37:36.640 business down the road. And given the shortage of workloads 0:37:36.640 --> 0:37:39.560 out there, I think they have enough in this you 0:37:39.560 --> 0:37:42.160 could say in the pipeline that for the next couple 0:37:42.160 --> 0:37:43.920 of years you're not going to have a problem in 0:37:44.000 --> 0:37:45.319 terms of their cloud growth rate. 0:37:46.280 --> 0:37:49.000 Alight, ran or a Plamberg Intelligence. Thank you. That was 0:37:49.040 --> 0:37:51.880 the analysis. Let's get the take from one of the 0:37:51.920 --> 0:37:55.640 companies involved in bringing ruber BORNO VP of Worldwide Channels 0:37:55.680 --> 0:37:59.600 and Alliances at AWUS. I'd love to start Ruba by 0:37:59.719 --> 0:38:02.480 say say be asking how this deal and how this 0:38:02.560 --> 0:38:04.240 relationship with Oracle came about. 0:38:05.880 --> 0:38:07.000 Thank you for having me ed. 0:38:07.600 --> 0:38:08.560 It's great to be here. 0:38:08.719 --> 0:38:11.839 We always work backwards from our customers and just like 0:38:11.920 --> 0:38:15.160 Unerug said, the pace of innovation is accelerating and with 0:38:15.239 --> 0:38:17.960 generative AI our customers want to be able to take 0:38:18.000 --> 0:38:21.080 advantage of their biggest assets, which is their data. That's 0:38:21.120 --> 0:38:25.080 their differentiation, and so with this partnership, we're announcing that 0:38:25.160 --> 0:38:29.759 customers can move their data seamlessly from Oracle Database at 0:38:29.800 --> 0:38:33.000 AWS to AWS in order to be able to take 0:38:33.040 --> 0:38:36.160 advantage of their assets and innovate at the pace that's 0:38:36.200 --> 0:38:36.880 required today. 0:38:37.600 --> 0:38:41.200 Ribo, what do you make of perhaps Anerog's take that 0:38:41.400 --> 0:38:45.719 this was surprising There is sort of frenemies going on 0:38:45.760 --> 0:38:46.280 at the moment. 0:38:46.320 --> 0:38:48.120 What is it like working alongside Oracle. 0:38:49.360 --> 0:38:51.560 You know, we've actually been working alongside them for a 0:38:51.640 --> 0:38:54.560 very long time. In fact, we've had joint customers with 0:38:54.719 --> 0:38:58.080 Oracle since two thousand and eight. So our focus has 0:38:58.120 --> 0:39:01.520 always been working backwards from the custom it's in our DNA, 0:39:01.960 --> 0:39:04.319 and the time was right for us to bring this 0:39:04.480 --> 0:39:07.120 offer to our customers as they're thinking about how to 0:39:07.160 --> 0:39:08.480 transform their businesses. 0:39:08.680 --> 0:39:09.720 They want to move faster. 0:39:10.000 --> 0:39:11.839 They want to be able to take the data that 0:39:11.880 --> 0:39:14.879 they have stored in Oracle and be able to take 0:39:14.880 --> 0:39:19.680 advantage of aws's large offerings of services like Amazon Q, 0:39:20.239 --> 0:39:23.520 Amazon Bedrock, the other services that they've gotten accustomed to, 0:39:23.920 --> 0:39:27.239 and that made it the time right right now for 0:39:27.360 --> 0:39:30.120 us to work together. So it's not new, we've been 0:39:30.120 --> 0:39:32.200 doing it for a long time, but it became a 0:39:32.239 --> 0:39:35.400 lot more urgent to support our customers on their transformations. 0:39:36.200 --> 0:39:39.240 Rub We got a lot of questions from Morbeling technology 0:39:39.280 --> 0:39:42.720 audience that have a relationship with either AWS, Oracle or both, 0:39:43.200 --> 0:39:46.160 and they're very simple, like how does this work in practice? 0:39:46.320 --> 0:39:49.680 Is there revenue split or revenue sharing? What are the 0:39:49.719 --> 0:39:52.040 obligations that the customer has to sign up to? 0:39:53.600 --> 0:39:57.439 Well, we're not sharing our own commercial terms between AWS 0:39:57.440 --> 0:40:00.360 and Oracle. But from a customer perspective, this is a 0:40:00.360 --> 0:40:04.120 great opportunity for customers to leverage this service. They've got 0:40:04.160 --> 0:40:07.960 their existing relationship with Oracle, their existing relationship with AWS. 0:40:08.200 --> 0:40:11.200 When we launch it later this year, we'll provide all 0:40:11.239 --> 0:40:13.600 of that information to our customers, but it should be 0:40:13.719 --> 0:40:17.400 just as seamless. It'll be single billing through their AWS console, 0:40:17.480 --> 0:40:20.359 the same way they subscribe to any services from AWS. 0:40:21.080 --> 0:40:26.160 Your very title, RUBA is alliances? Is this a new 0:40:26.200 --> 0:40:29.600 world of alliances at the moment as people search out compute, 0:40:29.640 --> 0:40:33.400 as they work within operators, are you seeing that more 0:40:33.440 --> 0:40:33.680 and more? 0:40:33.680 --> 0:40:34.560 Globally speaking? 0:40:36.080 --> 0:40:37.919 I think that we've been seeing it for a long time. 0:40:38.040 --> 0:40:43.320 AWS has the largest cloud native partner network in the world, 0:40:43.600 --> 0:40:46.160 and we've had that because it is in our ethos 0:40:46.320 --> 0:40:49.279 to provide our customers with choice and provide them with 0:40:49.360 --> 0:40:53.480 simplicity so that they can run their businesses as seamlessly 0:40:53.560 --> 0:40:57.759 as possible and innovate not just through AWS first party services, 0:40:57.960 --> 0:41:00.680 but also through the breadth of third party services that 0:41:00.719 --> 0:41:03.120 they need to run their businesses. It's not a new 0:41:03.160 --> 0:41:06.440 concept for AWS, and we're trying to make it easier 0:41:06.440 --> 0:41:09.360 on our customers to take advantage of all of that innovation. 0:41:10.440 --> 0:41:14.440 Just very quickly. Are you seeing more SMEs kind of 0:41:14.440 --> 0:41:16.799 take note now we're trying to move beyond sort of 0:41:16.800 --> 0:41:21.279 the biggest companies thinking about their access to compute and 0:41:21.320 --> 0:41:22.520 the software that they're using. 0:41:24.239 --> 0:41:28.200 Absolutely, I mean small medium enterprises are continuing to be 0:41:28.680 --> 0:41:32.680 a high growth engine for technology adoption. I wouldn't say 0:41:32.680 --> 0:41:36.200 that they've been laggards, but they are now certainly moving faster. 0:41:36.360 --> 0:41:38.560 It is easier for them to take advantage of it, 0:41:38.800 --> 0:41:41.360 and so we are working directly with those customers. We 0:41:41.440 --> 0:41:44.160 are working through many of our channel partners to reach 0:41:44.200 --> 0:41:48.319 those customers and help them adopt innovation that's available in 0:41:48.360 --> 0:41:50.480 the cloud, and so we'll continue to see that. We're 0:41:50.520 --> 0:41:53.600 going to continue to build services with them, for them and. 0:41:53.600 --> 0:41:59.360 With our partners Rivavona, VP of Worldwide Channels, Analyances and AWS. 0:41:59.520 --> 0:42:02.200 Busy time and we thank you now it's been a 0:42:02.200 --> 0:42:03.560 busy time for the show as well. That does it 0:42:03.640 --> 0:42:05.200 for this edition of Bloomberg Technology. 0:42:05.400 --> 0:42:07.520 So many market moves, more guests to come out. 0:42:08.440 --> 0:42:10.560 Yeah, tomorrow, we're going to be joined by Waimo co 0:42:10.719 --> 0:42:14.960 CEO Takedra Manakar for an exclusive interview. A lot of 0:42:15.040 --> 0:42:16.920 data points coming out of Weaimo and a lot of 0:42:16.960 --> 0:42:20.280 questions ask about the ongoing tie up with Alphabet, parent 0:42:20.280 --> 0:42:23.000 of Google. Don't forget also to check out the podcast. 0:42:23.280 --> 0:42:25.120 You know where to find it on the Bloomberg terminal 0:42:25.239 --> 0:42:28.920 as well as online on Apple, Spotify, and iHeart from 0:42:28.920 --> 0:42:30.480 the team out in New York City and all the 0:42:30.520 --> 0:42:33.279 team here in San Francisco. This is Bloomberg Technology.