WEBVTT - TSMC's AI Boost and the Microsoft-Activision Deal 0:00:01.720 --> 0:00:02.600 From Mahart. 0:00:02.600 --> 0:00:07.000 We're Innovation of Money and Power Collie in Silicon Valley, NBN. 0:00:07.360 --> 0:00:20.880 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.720 --> 0:00:28.240 I'm Caroline Heind at Bloomberg's world headquarters in New York. 0:00:28.760 --> 0:00:32.360 Ed Ludlow here in San Francisco. This is Bloomberg Technology. 0:00:32.000 --> 0:00:35.159 Coming up this hour the AI hypercycle. 0:00:35.159 --> 0:00:38.760 It's helping TSMC, the company reporting better than expected sales 0:00:38.800 --> 0:00:42.320 on that boom in artificial intelligence applications demand. But can 0:00:42.360 --> 0:00:46.760 it support the second half? We break down the numbers, plus. 0:00:46.479 --> 0:00:49.640 The fate of microsoft sixty nine billion dollar takeover of 0:00:49.720 --> 0:00:52.479 Activision Blizzard. It's in the hands of a judge, but 0:00:52.560 --> 0:00:55.680 it was merger arbitrage specialist glued to the core in 0:00:55.760 --> 0:00:58.880 San Francisco, some even paying line sitters to snag a 0:00:58.920 --> 0:01:00.760 seat at high stakes hearing. 0:01:01.160 --> 0:01:03.960 We have the story and Meta's newest social app, Threads 0:01:04.000 --> 0:01:06.160 topping one hundred million users. 0:01:06.120 --> 0:01:07.240 Less than five days. 0:01:07.800 --> 0:01:12.600 Can this hype cycle hold for first TSMC, Let's bring 0:01:12.600 --> 0:01:15.160 in our in house expert and another than bloom Legs, 0:01:15.240 --> 0:01:17.639 Ian King, another brit to add to the mix today. 0:01:17.959 --> 0:01:21.440 And Ian is it because we've seen the stock already 0:01:21.480 --> 0:01:23.360 outperform so much that we're seeing a little bit of 0:01:23.360 --> 0:01:25.080 weakness or is it more that we're worried about the 0:01:25.120 --> 0:01:25.720 second half. 0:01:26.800 --> 0:01:28.760 I mean it's a mixture of both there. 0:01:28.800 --> 0:01:31.880 I mean, the way to look at this performances really well, 0:01:31.920 --> 0:01:34.680 it's not as bad as people thought it might be. 0:01:35.120 --> 0:01:36.920 I mean that there are no runaway. 0:01:36.520 --> 0:01:39.199 Expectations of things getting better here. It's just like, well, 0:01:39.520 --> 0:01:41.800 they kind of did better in a way that we 0:01:41.880 --> 0:01:44.960 may have expected, and things really for the majority of 0:01:45.000 --> 0:01:48.360 their business, which is really the smartphone industry, just still 0:01:48.400 --> 0:01:49.280 doesn't look that good. 0:01:49.800 --> 0:01:53.760 If we simplify the story, TSNC is a contract manufacturer. 0:01:53.800 --> 0:01:57.360 It makes chips for others who design them. The story 0:01:57.480 --> 0:02:01.600 smartphone PC bad it basically. 0:02:01.520 --> 0:02:03.240 Yeah, no, that's absolutely it. 0:02:03.280 --> 0:02:06.120 I mean forty percent of around forty percent of their 0:02:06.120 --> 0:02:09.000 sales are from the smartphone industry, and that's going an 0:02:09.000 --> 0:02:11.680 industry that's going to be down roughly ten percent this year, 0:02:12.120 --> 0:02:14.320 so not not brilliant at all, and that obviously has 0:02:14.360 --> 0:02:18.440 wider implications. On the other side, high performance computing, which 0:02:18.480 --> 0:02:20.639 is PCs, but also the data center. 0:02:21.040 --> 0:02:22.360 And as we've seen, if you've. 0:02:22.160 --> 0:02:24.959 Got people like in video giving you orders, giving you 0:02:25.040 --> 0:02:27.280 orders for very expensive chips and that's a good place 0:02:27.320 --> 0:02:27.520 to be. 0:02:27.840 --> 0:02:30.840 Yeah, it is, and for many the warriors and constraints 0:02:30.880 --> 0:02:32.919 have been on the supply side. 0:02:33.120 --> 0:02:37.040 How much is that t SMC is concerned right now? 0:02:37.639 --> 0:02:38.720 Not so much anymore. 0:02:38.760 --> 0:02:41.480 I mean, I think everybody would like to see, you know, 0:02:41.760 --> 0:02:45.240 a lot more volume. What we're seeing in terms of 0:02:45.280 --> 0:02:49.000 this better than expected performance is really a value story, 0:02:49.080 --> 0:02:51.519 right you know, you're looking at a smartphone chip which 0:02:51.560 --> 0:02:55.480 is thirty forty, you know, thirty four dollars ago compared 0:02:55.520 --> 0:02:58.440 to some of Invideo's chips which are in the thousands. Obviously, 0:02:58.720 --> 0:03:01.560 if you're selling chips that cost the thousands, then your 0:03:01.600 --> 0:03:04.200 margins are really good and that helps your revenue where 0:03:04.200 --> 0:03:06.519 really you want those factories full as well, and that's 0:03:06.560 --> 0:03:08.240 going to get you, you know, your gross margins. 0:03:09.040 --> 0:03:11.320 We've been talking a lot about an AI hype cycle, 0:03:11.840 --> 0:03:14.560 but in Caroline this is interesting. Behind the scenes, Ian 0:03:14.639 --> 0:03:18.160 has been teaching me things which sometimes goes well, sometimes 0:03:18.160 --> 0:03:21.080 does in h one hundred a one hundred. These are 0:03:21.160 --> 0:03:25.080 high power gpups, very specific use case to the training 0:03:25.120 --> 0:03:28.240 and inference side of large language models. You still need 0:03:28.240 --> 0:03:29.360 the memory chips. 0:03:29.400 --> 0:03:29.800 Correct. 0:03:29.840 --> 0:03:34.040 Why explain why being on the same board GPU, CPU 0:03:34.600 --> 0:03:35.800 DRAM is important. 0:03:36.040 --> 0:03:38.600 It's all about data sets, right. The bigger the data set, 0:03:38.640 --> 0:03:42.640 the more parameters, the more information, the better your calculations are, 0:03:42.680 --> 0:03:44.320 the better you can train it, and the better your 0:03:44.320 --> 0:03:47.800 influences down the line. What do you need to handle 0:03:47.840 --> 0:03:51.200 those larger data sets? Better storage and bigger lumps of 0:03:51.240 --> 0:03:56.480 memory that sit next to those processes. So in theory, Micron, SAMs, Heinix, 0:03:56.520 --> 0:04:00.000 all of those other companies should be benefiting from this. Unfortunately, 0:04:00.560 --> 0:04:02.440 smartphones PC's not great. 0:04:03.000 --> 0:04:06.160 Bloombo c and King mister Chip we call him, thank 0:04:06.160 --> 0:04:08.920 you very much. Now, coming up, what the fate of 0:04:08.960 --> 0:04:12.119 the Microsoft Activision deal in the video game space has 0:04:12.160 --> 0:04:14.280 in store for that industry at large. We're going to 0:04:14.280 --> 0:04:17.240 discuss all that with Convoy Ventures Josh Chapman, a VC 0:04:17.640 --> 0:04:21.560 whose singular focus is the video games industry. Speaking of 0:04:21.600 --> 0:04:24.160 take a look at shares of both Microsoft and Activision. 0:04:24.560 --> 0:04:29.240 We expect imminently the judge to decide an outcome in 0:04:29.320 --> 0:04:34.160 the FTC hearing or trial for a temporary block on 0:04:34.200 --> 0:04:37.560 that deal. Activision off half a percentage point, a soft 0:04:37.640 --> 0:04:41.359 proxy for the direction of travel where investors see this going. 0:04:41.520 --> 0:04:44.159 But as we've discussed Microsoft down two point six percent, 0:04:44.440 --> 0:04:46.960 really big points drag on the nasat one hundred. This 0:04:47.640 --> 0:05:04.279 is Bloombog Technology. The Microsoft Activision deal is the biggest 0:05:04.360 --> 0:05:07.560 video gaming and tech deal ever, and it's pretty important 0:05:07.920 --> 0:05:12.159 for the arbitrage community too. Portfolio managers, analysts, and specialized 0:05:12.200 --> 0:05:15.720 brokers who bet on whether mergers will go through flew 0:05:15.760 --> 0:05:17.800 in from all over the country to sit in on 0:05:17.839 --> 0:05:21.400 the hearing over Microsoft's takeover deal here in San Francisco. 0:05:21.600 --> 0:05:24.520 Bloomberg's Maltin Nayak is here for more. So you've spent 0:05:24.720 --> 0:05:26.600 days and days in that court room. 0:05:27.200 --> 0:05:28.920 It was a five day hearing, yes. 0:05:29.520 --> 0:05:32.719 Alongside some suited and booted individuals. Who are they and 0:05:32.720 --> 0:05:33.320 why they're there? 0:05:33.520 --> 0:05:37.400 So, you know, I was interested to see some linstitters 0:05:37.520 --> 0:05:40.720 and then I noticed that they made way for folks 0:05:40.200 --> 0:05:43.880 in suits and formal clothes and they really stood out 0:05:43.920 --> 0:05:46.080 in San Francisco. So I was wondering, you know, who 0:05:46.120 --> 0:05:47.839 they were, And it turns out that they were merger 0:05:47.920 --> 0:05:51.279 arbitragers and analysts, you know who were there to just 0:05:51.320 --> 0:05:53.760 see what was going on, and they were taking notes, 0:05:53.839 --> 0:05:57.520 you know, feverishly and keeping a very close eye on, 0:05:57.920 --> 0:06:00.400 you know, all the little grimaces and and sort of 0:06:00.400 --> 0:06:02.560 the body language of the judge. 0:06:02.279 --> 0:06:05.880 New Yorkers be busted and go to herself in your suits. 0:06:06.520 --> 0:06:10.120 Malthe what's interesting is, of course they're trying to discern 0:06:10.560 --> 0:06:15.640 any frowns, any facial movements, basically how this court case 0:06:15.720 --> 0:06:19.440 is going. From your writing, it seems that perhaps not 0:06:19.600 --> 0:06:22.720 to or the FDC's advantage. 0:06:23.080 --> 0:06:25.760 It definitely seems like from the last round of questioning 0:06:25.800 --> 0:06:28.279 by the judge in the last day, she really grilled 0:06:28.320 --> 0:06:30.680 the FTC and asked for a lot of evidence that 0:06:30.880 --> 0:06:33.680 wasn't really produced in court. So it definitely seems like 0:06:33.920 --> 0:06:36.800 right now the companies have the upper hand. But you 0:06:36.920 --> 0:06:39.800 never know with judges, some of them, you know, they 0:06:39.839 --> 0:06:41.680 may ask a lot of questions in court, but they 0:06:41.720 --> 0:06:44.320 won't go very far in terms of taking drastic steps 0:06:44.360 --> 0:06:46.480 like blocking a deal. So we'll have to see how 0:06:46.480 --> 0:06:49.120 it all plays out. But definitely the sentiment now is 0:06:49.200 --> 0:06:52.719 among the ubtraged community even that perhaps the companies right 0:06:52.720 --> 0:06:53.960 now things are looking. 0:06:53.760 --> 0:06:54.400 Good for them. 0:06:54.520 --> 0:06:56.440 So there are some things we need to consider about 0:06:56.880 --> 0:07:00.960 outcomes and scenarios if this goes in Microsoft and acts 0:07:01.000 --> 0:07:03.760 visions favor. There is a deadline on the deal. We've 0:07:03.760 --> 0:07:06.479 got to think about that. The UK has a completely 0:07:06.480 --> 0:07:09.159 separate regulatory process going bring us up to speed on 0:07:09.200 --> 0:07:10.280 what might happen next. 0:07:10.520 --> 0:07:13.480 So we have this July eighteen deadline that's looming and 0:07:13.520 --> 0:07:16.040 the companies have to move quickly to close the deal. 0:07:16.320 --> 0:07:19.040 So everyone is waiting for this ruling to come down 0:07:19.040 --> 0:07:21.400 from the judge. That will sort of be the first 0:07:21.480 --> 0:07:23.720 round in the fight with the FTC, which is trying 0:07:23.720 --> 0:07:27.240 to temporarily block its deal. Block the deal right now. 0:07:27.600 --> 0:07:32.640 So also UK regulators have said that this deal won't 0:07:32.840 --> 0:07:34.920 you know, have said that this deal can't go through. 0:07:35.200 --> 0:07:38.160 So we have Microsoft which is appealed that decision. We'll 0:07:38.160 --> 0:07:40.040 have to see what happens in terms of how they 0:07:40.040 --> 0:07:43.000 plan to close the deal around that. There could be 0:07:43.080 --> 0:07:45.560 a scenario where they just decide to go ahead and 0:07:45.560 --> 0:07:48.400 close the deal, but you know, keep the board the 0:07:48.520 --> 0:07:49.880 entity separate for a while. 0:07:50.120 --> 0:07:51.040 Perhaps they could do. 0:07:51.040 --> 0:07:53.160 That globally or only in the UK. So we'll have 0:07:53.200 --> 0:07:55.440 to see how that works out in terms of how 0:07:55.640 --> 0:07:58.680 you know, they work around the UK decision and sort 0:07:58.680 --> 0:08:00.240 of the appeals process around that. 0:08:00.640 --> 0:08:03.560 July eighteenth clock is ticking. Mauthy Nayak, thank you so 0:08:03.680 --> 0:08:06.280 much for bringing us, well the legal expertise, what's happening 0:08:06.320 --> 0:08:08.560 in the courtroom, let's look at how it affects the ecosystem. 0:08:08.560 --> 0:08:10.920 When please to welcome Josh Chapman, managing partner at Convoy 0:08:10.920 --> 0:08:14.560 It's and Denver based VC firm investing in all things gaming. Josh, 0:08:14.600 --> 0:08:16.760 great to have you back on. And does this affect 0:08:17.080 --> 0:08:18.080 the ecosystem? 0:08:18.160 --> 0:08:21.800 If it doesn't go through, it does affect the ecosystem. 0:08:21.880 --> 0:08:25.440 So right now there's about forty five billion that's sitting 0:08:25.480 --> 0:08:28.680 in cash on the gaming corporates, and then secondarily there's 0:08:28.680 --> 0:08:31.040 about one hundred and seventy five billion that's sitting on 0:08:31.120 --> 0:08:35.000 the balance sheets of tech companies that have gaming divisions, 0:08:35.040 --> 0:08:39.280 such as Meta or Microsoft. So this ruling certainly does 0:08:39.360 --> 0:08:41.680 have quite an impact on what's going to happen next 0:08:41.679 --> 0:08:45.760 around vertical integration and m and A in the gaming industry. 0:08:46.200 --> 0:08:48.560 And of course ed the argument, for example in the 0:08:48.640 --> 0:08:53.359 UK has been about the cloud element is gaming in particular. 0:08:54.320 --> 0:08:56.319 Yeah, And what's so interesting is when I had Bobby 0:08:56.360 --> 0:08:58.560 Kotik on the show a few weeks ago, he said, 0:08:58.559 --> 0:09:01.520 this isn't anything to do with cloud. It's a tiny market. 0:09:01.679 --> 0:09:04.440 We're not there yet. We write time and again Josh 0:09:04.520 --> 0:09:06.680 and all blame bag news stories that this deal will 0:09:06.720 --> 0:09:10.520 reshape the landscape for video games as an industry. 0:09:11.080 --> 0:09:14.880 Does it in part, It doesn't reshape it in the 0:09:14.920 --> 0:09:18.520 sense of sort of upending the entire console market. If anything, 0:09:18.559 --> 0:09:23.120 this is a continuation of very competitive and healthy competitive markets. 0:09:23.160 --> 0:09:23.319 Right. 0:09:23.400 --> 0:09:25.800 I personally, I'm on the side of I don't believe 0:09:25.840 --> 0:09:29.200 that this acquisition is anti competitive, and so from a 0:09:29.200 --> 0:09:34.120 cloud gaming perspective, Microsoft actually is the perfect cloud infrastructure 0:09:34.160 --> 0:09:37.360 platform to build an entirely new market. In addition to 0:09:37.400 --> 0:09:40.720 not only cloud gaming seeing more competition, and you also 0:09:40.800 --> 0:09:43.560 see the rise of more competition in the mobile market 0:09:43.559 --> 0:09:46.240 the Xbox game Pass mobile store that they want to launch. 0:09:46.320 --> 0:09:50.480 So this adds a ton of competition already to the industry, 0:09:51.200 --> 0:09:53.480 and so it certainly, you know, they could actually be 0:09:53.559 --> 0:09:56.400 responsible for creating an entire cloud gaming market. 0:09:57.800 --> 0:10:01.000 When you think about some of the compromises offering Call 0:10:01.040 --> 0:10:05.079 of Duty on other platforms as an example, what kind 0:10:05.080 --> 0:10:07.920 of disruption does that give the industry? Because it changes 0:10:09.360 --> 0:10:13.400 how players have historically accessed those games. There's a lot 0:10:13.440 --> 0:10:17.079 of loyalty, right you're either PlayStation, Xbox, you're a PC gamer, 0:10:17.440 --> 0:10:18.719 does that mess things up a bit? 0:10:20.080 --> 0:10:21.080 I don't think it messes it up. 0:10:21.080 --> 0:10:23.559 If anything, I think it actually keeps the plane field 0:10:23.559 --> 0:10:26.320 across gaming, specifically with Call of Duty, which is really 0:10:26.360 --> 0:10:29.280 the number one topic right now. Right now, Call of 0:10:29.360 --> 0:10:32.920 Duty is played by about a million people on PlayStation, 0:10:33.080 --> 0:10:37.240 So from an economic incentive perspective, Xbox has no economic 0:10:37.720 --> 0:10:40.920 incentive to remove that game from Sony, and so Sony 0:10:41.280 --> 0:10:44.080 wants Call of Dude to succeed, and so does Microsoft 0:10:44.120 --> 0:10:47.000 and definitely obviously the activision Blizzard. So when it comes 0:10:47.080 --> 0:10:50.320 to what's next, I think that you could see the 0:10:50.440 --> 0:10:53.959 rise of cloud gaming being a sort of more affordable 0:10:54.000 --> 0:10:56.720 way for people to gain which would be great for 0:10:56.760 --> 0:10:59.080 people who don't want to buy, you know, and invest 0:10:59.360 --> 0:11:02.320 five hundred to fifteen hundred dollars into an Xbox or 0:11:02.480 --> 0:11:05.520 the latest PlayStation. So I think this is a netwind 0:11:05.520 --> 0:11:07.480 for the consumer. I think over time you're going to 0:11:07.480 --> 0:11:12.000 see increasingly more cross platform games like Fortnite, like Call 0:11:12.040 --> 0:11:14.839 of Duty, and I think that that will continue and 0:11:15.040 --> 0:11:18.319 gaming is going to thrive under the approval of this acquisition. 0:11:19.040 --> 0:11:22.440 Okay, Josh, if it doesn't get approved, how does that 0:11:22.559 --> 0:11:24.600 change your own investment thesis? 0:11:24.679 --> 0:11:26.720 Do you hold back in terms of writing checks At 0:11:26.720 --> 0:11:27.280 the moment. 0:11:28.440 --> 0:11:30.959 We wouldn't hold back, So we focus on seeds series 0:11:30.960 --> 0:11:33.960 of investing, writing one to five million dollar checks primarily 0:11:34.000 --> 0:11:37.800 into technologies, platforms, and infrastructure of the gaming industry. So 0:11:37.960 --> 0:11:40.520 we will continue investing in at early stage, which is 0:11:40.840 --> 0:11:43.719 proveing to be quite vibrant right now. But from an 0:11:43.960 --> 0:11:46.199 m and a landscape for our companies once they get 0:11:46.200 --> 0:11:49.160 to later stages that is actually where this could have 0:11:49.200 --> 0:11:53.760 an impact. Is are vertical integrations and mergers and acquisitions 0:11:53.880 --> 0:11:56.480 going to be approved? And I think, as I mentioned earlier, 0:11:56.480 --> 0:11:58.440 with some of the cash that's out there waiting to 0:11:58.480 --> 0:12:04.000 acquire great companies, they might be more hesitant because of 0:12:04.040 --> 0:12:07.680 regulatory concerns versus pure economic deal making. 0:12:08.720 --> 0:12:11.240 Josh, this is the first opportunity I've had to ask 0:12:11.320 --> 0:12:14.640 you about Apple Vision pro and gaming. What do you 0:12:14.679 --> 0:12:15.160 make of it? 0:12:16.360 --> 0:12:18.280 I think we're a long way off from the vision 0:12:18.280 --> 0:12:22.240 that we saw pitched. I think that it is very cool. 0:12:22.480 --> 0:12:26.400 This is going to be great for very solo experiences. 0:12:26.920 --> 0:12:29.120 But I view this as sort of one of the 0:12:29.920 --> 0:12:31.800 just like the first Oculis that came out. If you 0:12:31.800 --> 0:12:34.720 remember that ed everyone was very excited about it, but 0:12:34.760 --> 0:12:38.280 true adoption didn't happen until five six, eight years later, 0:12:38.640 --> 0:12:42.080 so I think that the augmented reality world is coming 0:12:42.280 --> 0:12:46.360 and will absolutely be here. We actually got excited about 0:12:46.360 --> 0:12:48.439 one of the other announcements they made where they are 0:12:48.480 --> 0:12:53.079 actually launching a gaming operating system to turn their PC 0:12:53.280 --> 0:12:57.280 industry with the Mac into a gaming platform. That actually 0:12:57.400 --> 0:12:59.000 kind of went under the radar but was one of 0:12:59.000 --> 0:13:01.560 the most exciting things you were watching is that they're 0:13:01.600 --> 0:13:05.160 opening up the ability to run high performing games on 0:13:05.240 --> 0:13:08.280 top of Max. That will be much more impactful. I 0:13:08.280 --> 0:13:10.480 think in four or five six years the Vision pro 0:13:10.920 --> 0:13:14.400 will enter certainly a more affordable price entry point for 0:13:14.440 --> 0:13:18.200 the consumer. But like many things, this is about wow 0:13:18.400 --> 0:13:21.680 now and then leader CEMTS Adoption. 0:13:22.559 --> 0:13:26.679 Josh Chapman, managing partner at Convoy also talking all things Activision, Microsoft, 0:13:26.679 --> 0:13:29.240 and we are expecting any day now the judge to 0:13:29.280 --> 0:13:41.520 make a decision in that FTC pause request time for 0:13:41.600 --> 0:13:44.200 talking tech First up and ton Ali Barbara are paying 0:13:44.240 --> 0:13:47.800 the price for Jackmar's clash with the Chinese government. On Friday, 0:13:48.080 --> 0:13:51.360 Beijing announced a nearly one billion dollar fine four ANC Group, 0:13:51.480 --> 0:13:53.880 but it's signaled an end to a regulatory crackdown. Now, 0:13:53.920 --> 0:13:57.120 Jack Mars, Ali Barba and out Group have collectively lost 0:13:57.120 --> 0:14:00.600 eight hundred and fifty billion dollars in value since twenty 0:14:00.760 --> 0:14:03.400 with Ali Barber's market value off by about six hundred 0:14:03.400 --> 0:14:06.200 and twenty billion from its peak, according to data compiled 0:14:06.200 --> 0:14:09.600 by Bloomberg. And Foxcott has determined it will not move 0:14:09.640 --> 0:14:13.280 forward on a semiconductor joint venture with India's the Dana. 0:14:13.440 --> 0:14:16.600 Fox Conn said the company aims at exploring more diverse 0:14:16.640 --> 0:14:19.800 development opportunities and that the company is working to remove 0:14:19.840 --> 0:14:22.280 the fox Conn name from what is now a fully 0:14:22.280 --> 0:14:26.080 owned entity of the Danta. Plus. Amazon's annual Prime Day 0:14:26.120 --> 0:14:28.280 isn't as popular as it used to be in the 0:14:28.320 --> 0:14:31.680 past four years. The stock's actually fallen in the week 0:14:31.720 --> 0:14:34.920 of the two dal day sale as investors' focus has 0:14:34.920 --> 0:14:38.520 shifted to aws It's cloud computing business. One to watch 0:14:38.560 --> 0:14:39.400 Carol it. 0:14:39.400 --> 0:14:41.880 Is and let's stick on how Amazon is clearly a 0:14:41.920 --> 0:14:45.040 company that's been embracing the world of AI like everything, 0:14:45.240 --> 0:14:48.120 but also we'll slowly been trying to embrace healthcare offerings too. 0:14:48.360 --> 0:14:49.360 We want to talk about. 0:14:49.120 --> 0:14:51.320 That insect a little bit more, particularly as we recently 0:14:51.320 --> 0:14:54.920 saw in Connecticut, consumers getting more control over how businesses 0:14:55.000 --> 0:14:57.840 treat information about their health and data, particularly for those 0:14:57.960 --> 0:15:00.720 aged under eighteen. Lawmakers added the new LO for example, 0:15:00.720 --> 0:15:03.120 to the Connecticut Data Privacy Act, which to affect July. 0:15:03.200 --> 0:15:06.720 The first joining us now about insect AI and healthcare 0:15:06.840 --> 0:15:08.200 is an expert in the field. 0:15:08.360 --> 0:15:09.360 When it's Sony. 0:15:09.200 --> 0:15:13.680 SUKEAI founder and CEO, you're really trying to basically give 0:15:13.720 --> 0:15:18.320 advantages to clinicians, in particular AI helping streamline their tasks. 0:15:18.440 --> 0:15:21.040 How much has data and privacy been one that you've had. 0:15:20.840 --> 0:15:23.400 To navigate significant? 0:15:23.480 --> 0:15:25.920 I mean, you know, to be honest, the biggest public 0:15:25.920 --> 0:15:28.720 health crisis in this country that few people talk about 0:15:28.800 --> 0:15:31.640 is the fact that clinicians are burning out. I would 0:15:31.640 --> 0:15:34.800 say eighty eight percent of all clinicians, by some recent 0:15:34.840 --> 0:15:38.520 study don't recommend their own profession to their kids anymore. 0:15:38.880 --> 0:15:41.120 For every hour of clinical work you do, you spend 0:15:41.160 --> 0:15:42.960 two hours doing administrative work. 0:15:43.200 --> 0:15:44.400 So it's super important to. 0:15:44.320 --> 0:15:47.680 Actually figure out how to use AI in healthcare. And 0:15:47.720 --> 0:15:49.760 the first place where you will start is probably an 0:15:49.800 --> 0:15:53.040 automating clinician workflows. If you're going to do that, then 0:15:53.080 --> 0:15:56.360 privacy data, how do you actually retain it and take 0:15:56.400 --> 0:15:58.000 care of it becomes paramount. 0:15:58.560 --> 0:16:01.280 We are learning on blibag technology and we have been 0:16:01.400 --> 0:16:04.200 for a year now that when you're building a large 0:16:04.280 --> 0:16:08.080 language model or foundation model, the quality and volume of 0:16:08.160 --> 0:16:12.480 data is key. So how do you reconcile the need 0:16:12.520 --> 0:16:15.400 for privacy with the need for massive volumes of data 0:16:15.960 --> 0:16:18.040 to develop next generation technology? 0:16:18.560 --> 0:16:20.640 You know, first of all, it's actually important to actually 0:16:20.640 --> 0:16:21.440 talk about what. 0:16:21.320 --> 0:16:22.120 AI really is. 0:16:22.160 --> 0:16:23.040 The truth is here. 0:16:23.240 --> 0:16:25.880 You know, even a dog walking app has AI these days, 0:16:25.880 --> 0:16:27.320 and so it's a little bit of a hype cycle 0:16:27.360 --> 0:16:30.000 that's going on. AI is a very broad term and 0:16:30.440 --> 0:16:34.520 it goes all the way from speech technologies, speech transcription technologies, 0:16:34.960 --> 0:16:39.200 understanding your commands, so intent extractors, large language models is 0:16:39.240 --> 0:16:41.960 just the next generation of language model work that's happened 0:16:41.960 --> 0:16:45.080 in AI. You can actually make a big dent in 0:16:45.120 --> 0:16:48.280 clinical workflows by using all of these in some variety 0:16:48.320 --> 0:16:52.480 of fashions. The truth is that the data in healthcare 0:16:52.560 --> 0:16:55.440 is very discrete and very specific, and so therefore you 0:16:55.480 --> 0:16:59.280 don't need tremendously large bodies of data to be able 0:16:59.320 --> 0:17:01.320 to create that actually works in this way. 0:17:01.600 --> 0:17:03.840 Caroline, I think we have so many founders on this show, 0:17:04.359 --> 0:17:06.679 so many bench cats, lists and we do talk broadly 0:17:06.680 --> 0:17:10.720 about AI. To be fair, we also find vcs that 0:17:10.760 --> 0:17:14.720 are very specifically focused on where they're putting money thematically 0:17:15.040 --> 0:17:16.040 or in a narrow field. 0:17:16.280 --> 0:17:18.879 So right, think about the applications in the legal field, 0:17:18.880 --> 0:17:21.560 we think about your application in the healthcare field, pun it. 0:17:21.680 --> 0:17:24.320 And to that end, have you been taking a lot 0:17:24.359 --> 0:17:26.520 more calls from people wanting to put money to work 0:17:26.520 --> 0:17:28.520 in your own company? I know you raised funds, it's 0:17:28.520 --> 0:17:31.080 a significant round what back in twenty twenty one, but 0:17:31.160 --> 0:17:34.240 have you been looking at adding on in this particular realm? 0:17:34.920 --> 0:17:37.800 Yeah, I mean the right time, that will actually become 0:17:37.880 --> 0:17:40.320 very important, and you know, as you scale the company 0:17:40.320 --> 0:17:42.160 you have to do that. I think the primary question 0:17:42.240 --> 0:17:44.399 to ask is what problem are you really trying to solve? 0:17:45.080 --> 0:17:47.800 First and foremost, we want to make sure that clinicians 0:17:47.840 --> 0:17:51.919 don't have to really focus on these screens and typing 0:17:51.920 --> 0:17:53.920 and checking boxes when they're actually talking. 0:17:53.720 --> 0:17:54.280 To the patient. 0:17:54.520 --> 0:17:56.520 I mean, imagine a world when you walk in and 0:17:56.560 --> 0:17:59.159 you just ask, you know, Suki, which is kind of 0:17:59.200 --> 0:18:02.760 like a SERI for doctors, what's my day like? And 0:18:02.800 --> 0:18:05.280 it tells you here's the next few patients you're coming in, said, 0:18:05.280 --> 0:18:07.040 give me a summary of the next patient, show me 0:18:07.080 --> 0:18:09.600 the chest text ray, summarize the findings for me, and 0:18:09.640 --> 0:18:11.600 then hey, let's just edit it a little bit and 0:18:11.640 --> 0:18:14.000 push it into the underlying system of record well quickly. 0:18:14.080 --> 0:18:17.440 The idea is that Suki does not replace human doctors, 0:18:17.600 --> 0:18:21.760 but it is an assistant, an aid. Yes, mechanically, how 0:18:21.800 --> 0:18:22.399 does that work? 0:18:22.480 --> 0:18:25.960 Well, I mean, you know, imagine having something that's always 0:18:26.000 --> 0:18:29.440 with you everywhere you go, and when you walk into 0:18:29.480 --> 0:18:31.639 an exam room you ask it to give a summary 0:18:31.640 --> 0:18:34.240 of the patient. When you are talking to the patient, 0:18:34.280 --> 0:18:36.560 what about you ask Suki to pay attention and if 0:18:36.560 --> 0:18:38.760 you'll take the doctor, patient and counter and create a 0:18:38.760 --> 0:18:41.119 clinical note out of it. What if you edit it, 0:18:41.200 --> 0:18:43.680 add some orders and then you say, Suki, just submit 0:18:43.720 --> 0:18:47.000 that to the system of record. That is an assistant 0:18:47.160 --> 0:18:49.280 for the doctor. And I think that is the future 0:18:49.280 --> 0:18:50.640 of where healthcare text is going to be going. 0:18:50.840 --> 0:18:54.320 Suk I founder and CEO PUNIT Sony Caroline. This is 0:18:54.320 --> 0:18:55.960 a topic on the show that we are going to 0:18:55.960 --> 0:18:59.320 continue talking about health in artificial intelligence. 0:19:06.440 --> 0:19:08.520 Welcome back to lu Meg Technology. I'm Karine Hide in 0:19:08.520 --> 0:19:10.280 New York and let's get you a quick update on 0:19:10.359 --> 0:19:12.719 the public markets, right now halfway through the trading day, 0:19:12.760 --> 0:19:14.600 and look a little bit more caution here in the 0:19:14.680 --> 0:19:17.360 United States, particularly in big tech look than NASDAK more 0:19:17.400 --> 0:19:19.919 broadly as a benchmark off by some three tenths and percent. 0:19:19.960 --> 0:19:22.240 We've got well a very healthy jobs data that was 0:19:22.280 --> 0:19:23.200 clear from last week. 0:19:23.400 --> 0:19:26.120 Now we look ahead to what the CPI print inflation data. 0:19:25.920 --> 0:19:26.640 Is going to show US. 0:19:26.560 --> 0:19:29.280 And the Federal reserves speak ahead of them going silent 0:19:29.320 --> 0:19:32.400 before they make the latest rate hike decision as many 0:19:32.440 --> 0:19:34.800 are bracing for. I'm looking at the MASCI or Country 0:19:34.840 --> 0:19:35.320 World Index. 0:19:35.320 --> 0:19:36.560 So interestingly Europe. 0:19:36.240 --> 0:19:38.560 Managed to pick itself up after a few days of 0:19:38.600 --> 0:19:41.480 sell off. The macro data really out there showing that 0:19:41.640 --> 0:19:44.000 Europe could do with a little bit more purchasing power. 0:19:44.000 --> 0:19:45.240 On the least on the day, were seeing that the 0:19:45.280 --> 0:19:48.440 Golden Dragon index in China showing actually there was a 0:19:48.440 --> 0:19:51.480 little bit of a lift in Asia trading Chinese stocks 0:19:51.520 --> 0:19:53.199 on the higher side, at least those traded in the 0:19:53.200 --> 0:19:55.280 tech world here in the United States are one point 0:19:55.320 --> 0:19:58.119 two percent. As we understand, the Chinese government in particular 0:19:58.240 --> 0:20:00.439 is going to be showing some support to its property sector. 0:20:00.480 --> 0:20:01.560