WEBVTT - Sam Bankman-Fried's Sentencing and Amazon's AI Investment 0:00:01.400 --> 0:00:05.240 We're from Marhart where innovation, money and power Collie in 0:00:05.360 --> 0:00:06.840 Silicon Valley, NBN. 0:00:07.160 --> 0:00:10.640 This is Bloomberg Technology with Caroline Hyde. 0:00:10.280 --> 0:00:11.200 And Ed Ludlow. 0:00:25.680 --> 0:00:28.720 I met Ludlow in San Francisco. Caroline Hyde is off. 0:00:28.880 --> 0:00:32.120 This is Boomberg Technology. Coming up, we'll have full coverage 0:00:32.440 --> 0:00:35.960 of the sentencing of Sam Bankman freed as the FTX 0:00:36.040 --> 0:00:40.760 founder faces up to half a century in prison. Plus, 0:00:40.800 --> 0:00:44.960 Amazon boosts its investment in AI startup Andthropic. We're nearly 0:00:45.080 --> 0:00:48.120 three billion dollars of cash infusion. We sit down with 0:00:48.200 --> 0:00:52.040 AWS to discuss, and we sit down with the CEO 0:00:52.200 --> 0:00:56.400 of Walgreens as the company enters its reinvention era. What 0:00:56.400 --> 0:01:00.480 does that mean for AI digital offerings and competition with Amazon? 0:01:00.680 --> 0:01:02.080 We will discuss. 0:01:02.480 --> 0:01:05.639 Welcome to your final trading day of the first quarter 0:01:05.760 --> 0:01:08.360 of twenty twenty four. The NASDAK one hundred is my 0:01:08.440 --> 0:01:11.640 go to a very tech heavy index, a high concentration 0:01:12.000 --> 0:01:15.400 of the megacaps and higher multiple software names. We are 0:01:15.440 --> 0:01:18.959 headed for back to back quarterly gains, two straight quarters 0:01:18.959 --> 0:01:21.440 of gains on the NASDAQ one hundred for the first 0:01:21.480 --> 0:01:22.720 time since. 0:01:22.560 --> 0:01:23.880 June of last year. 0:01:24.319 --> 0:01:26.800 You know, the big story and video is the best 0:01:26.840 --> 0:01:29.800 performer more than eighty percent game year to date, but 0:01:29.920 --> 0:01:33.080 also other chip names like Micron, where we're talking about 0:01:33.080 --> 0:01:36.600 the infrastructure build out that is supporting AI development and 0:01:36.640 --> 0:01:40.880 we're seeing more beneficiaries participate in this technology stock rally. 0:01:41.000 --> 0:01:42.400 There are other names in there as well. 0:01:42.480 --> 0:01:45.759 Door Dash, Meta and ASML are some of the top 0:01:45.800 --> 0:01:49.360 performers year to date on the Nasdaq one hundred. We 0:01:49.400 --> 0:01:51.480 will continue to check on the markets, but I'd note 0:01:51.560 --> 0:01:54.559 that in the session the Nasdaq one hundred is basically 0:01:54.640 --> 0:01:57.640 flat this Thursday, and what's a shortened trading week here 0:01:57.760 --> 0:02:00.440 in the United States. Let's get to our top story. 0:02:00.960 --> 0:02:04.440 The judge presiding over Sam Bankman Freed's sentencing will today 0:02:04.520 --> 0:02:08.640 decide the future of the fallen crypto mogul. Prosecutors are 0:02:08.639 --> 0:02:12.120 seeking a sentence of forty to fifty years for what 0:02:12.160 --> 0:02:16.160 they have called, quote likely the largest fraud of the 0:02:16.240 --> 0:02:19.800 last decade. Bloomberg's David Gura is on the ground outside 0:02:19.800 --> 0:02:22.480 of the courthouse in New York City. David, what is 0:02:22.520 --> 0:02:24.760 happening right now as we speak. 0:02:26.720 --> 0:02:29.200 And this is a pivotal moment. Sam Bankman Freed is 0:02:29.440 --> 0:02:32.120 on the stand addressing the court. We had a variety 0:02:32.160 --> 0:02:35.400 of litigation about sentencing guidelines, what the judge might or 0:02:35.440 --> 0:02:38.360 might not do. Prosecution and defense are allowed to speak, 0:02:38.400 --> 0:02:40.800 so is the defendant. He's taken that opportunity, and he's 0:02:40.840 --> 0:02:44.320 not speaking from notes. He's giving a discursive, off the 0:02:44.360 --> 0:02:47.840 cuff address to the court. And an open question going 0:02:47.919 --> 0:02:50.799 into today's proceedings was how much remorse is Sam Bankman 0:02:50.840 --> 0:02:52.519 Freed going to show? And he started off by saying, 0:02:52.520 --> 0:02:54.720 I know a lot of people feel really let down. 0:02:55.080 --> 0:02:57.359 I'm sorry about that. I'm sorry about what happened. 0:02:57.360 --> 0:03:00.320 At every stage from there though, ed we were turned 0:03:00.360 --> 0:03:01.880 to the Sam bankmin Freed I think a lot of 0:03:01.960 --> 0:03:03.880 us are familiar with, and that's somebody who has been 0:03:03.919 --> 0:03:06.920 grousing about the way this company fell apart and what 0:03:07.000 --> 0:03:09.320 happened in the weeks that followed, the role that bankruptcy 0:03:09.400 --> 0:03:12.600 lawyers have been playing, and again familiar arguments about how 0:03:12.600 --> 0:03:15.440 they mishandled the way that the company was structured, handled 0:03:15.480 --> 0:03:19.120 the recovery of assets, and rebuffed his entreaties to help 0:03:19.200 --> 0:03:23.120 with that restructuring process. So what began as sort of 0:03:23.280 --> 0:03:25.440 a glimpse of some remorse turned into that and was 0:03:25.480 --> 0:03:27.480 sandwiched at the end by him saying at the end 0:03:27.520 --> 0:03:30.079 of the day, I was responsible. But pouring over these 0:03:30.120 --> 0:03:32.720 sentencing memos post from the defense and the prosecution, again, 0:03:33.000 --> 0:03:35.920 what was so glaringly missing from the defense's submission was, 0:03:36.400 --> 0:03:39.280 and I'm sorry, an admission of the fact that he 0:03:39.320 --> 0:03:42.200 in fact orchestrated this massive fraud. And so this is 0:03:42.200 --> 0:03:44.040 continuing out inside the courtroom behind me up on the 0:03:44.040 --> 0:03:46.960 twenty sixth floor in Judge Lewis Kaplan's courtroom. Again, we 0:03:47.040 --> 0:03:48.720 might hear from the prosecution on the heels of this. 0:03:48.800 --> 0:03:51.080 We have heard from the defense. Then after that it's 0:03:51.120 --> 0:03:53.680 up to the judge to sentence him based on, yes, 0:03:53.720 --> 0:03:56.040 the two submissions from these sides, and the federal guidelines 0:03:56.040 --> 0:03:56.440 that he has a. 0:03:56.480 --> 0:04:02.080 Disposal guidelines, I mean, the defense wishing for a sentence 0:04:02.240 --> 0:04:05.520 of six and a half years, the prosecution want a 0:04:05.600 --> 0:04:09.960 sentence of between forty and fifty years. What are the 0:04:09.960 --> 0:04:12.640 fact is that the judge has to consider. You know, 0:04:13.000 --> 0:04:16.560 I've got some experience in the outcome of white collar 0:04:16.640 --> 0:04:20.719 crime or fraud trials where there are guidelines in place, 0:04:20.760 --> 0:04:23.200 But the judge is at the center of this and 0:04:23.240 --> 0:04:25.200 has some discretion, so to speak. 0:04:27.560 --> 0:04:29.040 So let me catch you up on what he had 0:04:29.040 --> 0:04:30.880 to say about something that's said the crux of the 0:04:30.920 --> 0:04:33.640 defense's argument that is that there are effectively no losses here, 0:04:33.920 --> 0:04:36.960 that the bankruptcy recovery has gone so well thus far 0:04:37.160 --> 0:04:39.800 that the fraud has been kind of minimized in their eyes. 0:04:40.120 --> 0:04:42.520 He rejected that out of hand, rejected that argument from 0:04:42.520 --> 0:04:46.119 the defense, And we did hear very compelling testimony from 0:04:46.320 --> 0:04:50.280 Sam Bekminfried's new lawyer, Mark mccasey, about Sam Bekmanfried, who 0:04:50.320 --> 0:04:54.159 he is, who he was, what's animated him? He said, really, 0:04:54.200 --> 0:04:56.240 he's an awkward math nerd. So again, this is a 0:04:56.240 --> 0:04:58.320 phrase that we'd heard from time memorial, going back to 0:04:58.360 --> 0:05:00.680 when he was running FTX, and he has this kind 0:05:00.680 --> 0:05:04.080 of social awkwardness. He said, Sam has lost everything. Losing 0:05:04.080 --> 0:05:06.000 the people in your life and being shamed by the 0:05:06.120 --> 0:05:10.680 entire globe seems to me enough specific deterrence. So they're 0:05:10.720 --> 0:05:13.599 looking at him in compliment with other fraudsters throughout time, 0:05:13.800 --> 0:05:18.120 Ed Bernie Madoff, of course, Elizabeth Holmes, and they're kind 0:05:18.120 --> 0:05:20.120 of saying, look, he's a young man who had no 0:05:20.160 --> 0:05:23.880 criminal difficulties or issues before this. There's no need to 0:05:23.920 --> 0:05:26.479 be excessively punitive toward him. That's the argument they're making 0:05:26.480 --> 0:05:28.080 to the judge. It's the argument they made in that 0:05:28.160 --> 0:05:31.640 sentencing filing. It's unclear how resonant that's going to be 0:05:31.720 --> 0:05:34.520 with the judge. I will say he has been palpably 0:05:35.120 --> 0:05:38.080 irritated by Sam Begmanfree throughout the course of this process, 0:05:38.080 --> 0:05:40.600 going to the beginning before the trial, to the pre 0:05:40.640 --> 0:05:43.120 trial hearings when we saw Sam Begmanfree kind of flouting 0:05:43.120 --> 0:05:44.960 the rules that had been put in place on his 0:05:45.040 --> 0:05:46.040 house arrest. 0:05:46.480 --> 0:05:48.800 Been both David Geris stay close to the camera. We 0:05:48.839 --> 0:05:51.400 will bring our audience real time updates as we get 0:05:51.440 --> 0:05:54.360 them from inside the courthouse. Let's keep a conversation going. 0:05:54.440 --> 0:05:58.000 Joining us now is Christine Adams, a partner at Adams, 0:05:58.360 --> 0:06:02.520 Dirk and Camenstein as health of experience as a federal 0:06:02.560 --> 0:06:08.680 prosecutor working across SEC investigations white collar crime. Christine, you 0:06:08.760 --> 0:06:11.919 heard the latest from David who is outside of the courthouse. 0:06:12.680 --> 0:06:16.360 Based on what we know, the backstory that David outlined, 0:06:16.400 --> 0:06:19.800 what is your expectation for the sentencing in this case. 0:06:20.760 --> 0:06:24.800 It's hard to say, because I think the challenge here 0:06:25.120 --> 0:06:27.480 is mister Bankman, Fred is such a young man. 0:06:27.560 --> 0:06:29.479 He's only thirty two years old. 0:06:30.000 --> 0:06:34.440 And when you look at the other comparable types of cases, 0:06:34.440 --> 0:06:37.680 including Elizabeth Holmes and Bernie made Up. 0:06:37.720 --> 0:06:39.920 Elzabeth Holmes, she's forty now and. 0:06:39.839 --> 0:06:42.360 She was sentenced to eleven years, so that gets for 0:06:42.480 --> 0:06:46.240 the promise of a life outside of prison. Bernie made 0:06:46.240 --> 0:06:48.480 Off was sentenced to I think one hundred and fifty years, 0:06:48.480 --> 0:06:50.400 but he was seventy one years all the time and 0:06:50.480 --> 0:06:53.039 only served ten of those years before he passed away. 0:06:53.560 --> 0:06:56.960 The thing I do note, though, is that mister bankman 0:06:57.000 --> 0:07:00.719 Fried is not helping himself. The court has already determined 0:07:00.720 --> 0:07:03.200 that the law succeeds five hundred and fifty million dollars. 0:07:03.600 --> 0:07:07.400 There is this lack of remorse on mister bankman Freed's part. 0:07:07.520 --> 0:07:12.760 It doesn't help that the bankruptcy trustee and others were 0:07:12.800 --> 0:07:15.440 able to recover the assets. You can't argue that, well, 0:07:15.560 --> 0:07:18.640 I did tell you that your customer funds would be safe, 0:07:18.680 --> 0:07:21.200 and then I stole them. But then look, I invested 0:07:21.240 --> 0:07:23.360 them really well and made all of this money. 0:07:23.400 --> 0:07:26.240 That doesn't work under the law. The court is going 0:07:26.280 --> 0:07:28.720 to take into a lack of remorse. The court is 0:07:28.760 --> 0:07:30.320 going to has already taken into account. 0:07:31.080 --> 0:07:33.760 It's belief that he committed perjury and obstruction of justice 0:07:33.840 --> 0:07:36.280 and connection with this child. So whatever the court does 0:07:36.320 --> 0:07:39.920 aside the sentence mister Bankman Freed, it will not be. 0:07:41.440 --> 0:07:42.760 If the sentences at all. 0:07:42.600 --> 0:07:44.840 In mister Bankman Freed's favor, it will not be because 0:07:44.840 --> 0:07:45.800 of mister Bankman Freed. 0:07:47.040 --> 0:07:50.840 You know, having gone through law school myself and covered 0:07:51.080 --> 0:07:55.000 in my career at Bloomberg other fraud and white collar 0:07:55.040 --> 0:07:58.320 crime cases. There are guidelines and then there is the 0:07:58.440 --> 0:07:59.920 human element of the jig. 0:08:01.000 --> 0:08:01.600 You mentioned. 0:08:01.600 --> 0:08:04.560 Bernie Madoff and the prosecutors in this case with Sam 0:08:04.560 --> 0:08:07.440 Bankmin Freed in a court filing pushed for forty you 0:08:07.520 --> 0:08:10.480 to fifty years because of the financial loss they argued 0:08:10.880 --> 0:08:15.320 was suffered by FTX customers and investors, and they quoted 0:08:15.360 --> 0:08:18.680 that that figure was just below made off. Does the 0:08:18.760 --> 0:08:23.720 judge take that story, that historic story into account when 0:08:23.800 --> 0:08:25.080 forming the sentencing. 0:08:26.120 --> 0:08:28.000 They just take it all into account. 0:08:28.040 --> 0:08:30.760 The judge, I think, will take into account what the 0:08:30.800 --> 0:08:34.040 facts were with mister Madoff's fraud and how do they 0:08:34.080 --> 0:08:39.480 compare it in mister Begman Freez fraud. The challenger though, 0:08:39.600 --> 0:08:43.400 is again this lack of remorse on mister Megman Free's part. 0:08:43.800 --> 0:08:47.800 He's even at the hearing right now just saying he 0:08:47.920 --> 0:08:51.960 made some bad decisions, which is equivalents to mistakes were made. 0:08:52.080 --> 0:08:53.200 He's not taking. 0:08:53.120 --> 0:08:57.640 Well, Christine, that is on the final day of this story. 0:08:57.760 --> 0:08:59.040 Is it too little too late? 0:08:59.200 --> 0:08:59.880 In that sense? 0:09:00.800 --> 0:09:03.640 It's too little too late, and he's not even given 0:09:03.760 --> 0:09:04.560 any today. 0:09:04.880 --> 0:09:07.600 It would be very different if he were to come 0:09:07.640 --> 0:09:10.080 and say, listen, I'm very sorry. I lied. 0:09:10.320 --> 0:09:12.800 I told my customers one thing and did another. I 0:09:12.840 --> 0:09:15.199 told my investors one thing and did another. But he's 0:09:15.240 --> 0:09:17.800 not even doing that on this very day. So we're 0:09:17.800 --> 0:09:20.560 not even able to analyze whether it's too little too 0:09:20.640 --> 0:09:22.680 late because there's nothing today that he's offering. 0:09:22.800 --> 0:09:27.880 Yes, Christine, again, we're speaking with you because of the 0:09:27.920 --> 0:09:30.160 eleven years you did in the US Attorney's office in 0:09:30.200 --> 0:09:35.200 Los Angeles. You're an experienced former federal prosecutor. How much 0:09:35.280 --> 0:09:39.480 of this is about deterrence, sending a message that the 0:09:39.600 --> 0:09:45.520 sentence is put in place to dissuade others from any 0:09:45.600 --> 0:09:49.480 future actions similar to those that Sam Bankmin Freed carried out. 0:09:50.559 --> 0:09:54.800 Deterrence is especially important in this case because of the 0:09:54.840 --> 0:09:57.920 newness of the cryptocurrency industry and the fact that it 0:09:57.960 --> 0:10:01.160 is only just now being regulated. There obviously are a 0:10:01.160 --> 0:10:05.520 lot of companies in this space, and there is an 0:10:05.600 --> 0:10:09.360 argument to be made that with the elimination of FTX 0:10:09.520 --> 0:10:13.040 and Binance, many of the other cryptocurrency exchanges in this 0:10:13.120 --> 0:10:16.880 space have learned their lesson and are operating on a 0:10:16.920 --> 0:10:23.400 much more on board basis than these previous companies. 0:10:23.440 --> 0:10:24.200 So it's really. 0:10:23.960 --> 0:10:31.160 Important for the government to show novel industries, technologically complex 0:10:31.240 --> 0:10:37.319 industries that they can bring charges and effectively prosecute these 0:10:37.360 --> 0:10:40.720 cases in child by breaking it down into very simple 0:10:41.400 --> 0:10:45.000 facts that jurys can understand, which is, these companies said 0:10:45.040 --> 0:10:46.960 one thing and it turned out to be a lie 0:10:47.040 --> 0:10:50.440 and people were victimized and lost money as a whistle. 0:10:51.760 --> 0:10:56.720 Christine web will Sam Bankman Freed's trial and this story 0:10:57.520 --> 0:11:03.400 rank in the history of mythol of US white collar 0:11:03.440 --> 0:11:04.880 crime and fraud cases. 0:11:05.800 --> 0:11:07.880 I think it's going to be way up there. 0:11:08.040 --> 0:11:11.960 We still talk about Bernie Madoff and that was decades ago. 0:11:12.440 --> 0:11:14.600 I think the Bankman free case is going to be 0:11:14.760 --> 0:11:15.280 just like that. 0:11:17.880 --> 0:11:20.600 Partner at Adams, Dirk and Chemi Seine Christine Adams, an 0:11:20.640 --> 0:11:25.000 experience federal prosecutor, reflecting on Sam Bankman Freed's trial and 0:11:25.080 --> 0:11:28.160 sentencing today, which we will continue to bring you updates 0:11:28.400 --> 0:11:29.200 from the ground on. 0:11:29.240 --> 0:11:30.520 Thank you very much for your time. 0:11:30.880 --> 0:11:33.360 This is Bloomberg Technology and coming up next on the show, 0:11:33.440 --> 0:11:37.360 Amazon invests even more money in AI startup Anthropic. We 0:11:37.400 --> 0:11:40.840 have all the details with AWS VI president Vice president 0:11:40.880 --> 0:11:44.040 of AI Products Matt Wood. Interesting conversational, a lot of 0:11:44.080 --> 0:11:47.480 emphasis on the semiconductor side of this story as well 0:11:47.520 --> 0:12:02.960 as AWS and generative AI. This is Bloomberg Technology. Amazon 0:12:03.040 --> 0:12:06.120 is investing in an additional two point seventy five billion 0:12:06.200 --> 0:12:09.679 dollars in Anthropic, completing a deal it made last year 0:12:09.720 --> 0:12:13.400 to back the AIS startup and expand a partnership between 0:12:13.440 --> 0:12:16.880 the companies. It brings Amazon's total investment in Anthropic to 0:12:17.080 --> 0:12:20.319 four billion dollars. Joining us now is Matt Wood, who 0:12:20.360 --> 0:12:24.199 is the vice president of AI Products at Amazon Web Services. 0:12:24.400 --> 0:12:30.199 In AWS and Anthropic are becoming increasingly close and aligned 0:12:30.280 --> 0:12:34.319 financially but also operationally. I just want to explain to 0:12:34.360 --> 0:12:38.280 our audience Matt, that in September the initial investment was 0:12:38.320 --> 0:12:40.800 one point twenty five billion, and there was a March 0:12:40.880 --> 0:12:44.040 deadline to invest the rest of it because you'd pledged 0:12:44.080 --> 0:12:45.240 as much as four billion. 0:12:45.600 --> 0:12:46.960 You've followed through on that. 0:12:47.040 --> 0:12:50.200 So what is it that that Amazon and AWS saw 0:12:50.280 --> 0:12:52.800 in Anthropic that pushed you to commit? 0:12:54.400 --> 0:12:56.120 Well, thanks, Ed, appreciate you having me here. 0:12:56.160 --> 0:12:56.920 It's great to be here. 0:12:57.360 --> 0:12:57.520 You know. 0:12:57.760 --> 0:13:02.040 Anthropic are provider of what we call foundation models, and 0:13:02.080 --> 0:13:05.720 they are the very center of the generative AI revolution. 0:13:06.000 --> 0:13:08.400 This ability for the first time to be able to 0:13:08.960 --> 0:13:12.880 reason and integrate across very large amounts of information, to 0:13:12.920 --> 0:13:16.560 be able to build assistance and chatbots, but also completely 0:13:16.559 --> 0:13:21.720 reimagine every aspect of the customer experience. And Thropic have 0:13:22.200 --> 0:13:26.440 some of the best foundation models available anywhere today and 0:13:26.800 --> 0:13:28.760 it has been a delight to get to know that 0:13:28.840 --> 0:13:32.760 team more closely. And our investment really reflects the way 0:13:32.760 --> 0:13:36.800 that we're partnering very expansively with Anthropic to bring these 0:13:36.840 --> 0:13:41.720 remarkable foundation models that Anthropic caused Claud to customers across 0:13:41.800 --> 0:13:45.640 every single industry and every single use case. It's really 0:13:45.760 --> 0:13:48.720 been remarkable over the past year to watch so many 0:13:48.800 --> 0:13:54.360 customers from financial services like ADP and into It, manufacturing 0:13:54.440 --> 0:13:59.600 with Siemens, transportation with Delta Airlines, Puiser, in life sciences, 0:14:00.040 --> 0:14:03.880 at and telecom, just every industry that you can imagine 0:14:04.080 --> 0:14:06.520 starting to use these foundation models in order to be 0:14:06.600 --> 0:14:10.800 able to completely reimagine the experience. Now, Anthropic makes available 0:14:11.080 --> 0:14:15.840 Board three, which is currently the best performing set of 0:14:15.960 --> 0:14:19.240 foundation models available anywhere, and so we've been able to 0:14:19.280 --> 0:14:22.240 partner with them to bring those models to customers through 0:14:22.280 --> 0:14:25.520 AWS through a service we have called Bedrock, And we're 0:14:25.520 --> 0:14:30.640 also partnering to allow Anthropic, who have selected AWS as 0:14:30.680 --> 0:14:34.320 their primary cloud provider for their mission critical training workloads 0:14:34.320 --> 0:14:37.760 going forwards to optimize their workloads for our own custom 0:14:37.840 --> 0:14:41.880 silicon that we use for machine learning, which we call TRAININGUM, 0:14:42.080 --> 0:14:45.720 which is a specific chip designed to accelerate machine learning 0:14:45.760 --> 0:14:49.840 and artificial intelligence model training, and Inferentia, which is a 0:14:50.000 --> 0:14:52.800 specific chip designed to accelerate the prediction or the use 0:14:52.840 --> 0:14:55.240 places map of the foundation models. 0:14:55.880 --> 0:14:58.560 Let me jump in here. When this news broke yesterday 0:15:00.320 --> 0:15:03.240 on social media, for example, that the story and some 0:15:03.280 --> 0:15:05.440 people replied saying, this looks very much like a quid 0:15:05.480 --> 0:15:10.600 pro quo where Amazon or AWS invests in Anthropic, but 0:15:11.040 --> 0:15:15.840 Enthropic is required to use AWS compute and TRAININGUM and Inferentia. 0:15:16.320 --> 0:15:22.040 Can you kind of give me some numbers behind Anthropic's 0:15:22.160 --> 0:15:26.080 use of both of the proprietary chips from AWS have 0:15:26.240 --> 0:15:29.640 they started using this. How is the kind of onboarding 0:15:29.640 --> 0:15:32.560 of Anthropic operationally into AWS going. 0:15:33.960 --> 0:15:37.720 Yeah, As I say, the Anthropic of selected AWS, we're 0:15:37.720 --> 0:15:41.360 collaborating both on model training, but also the work that 0:15:41.360 --> 0:15:44.960 we're doing with Anthropic is helpful in how we develop 0:15:45.040 --> 0:15:48.600 the next generation of these pretty remarkable chips which provide 0:15:48.840 --> 0:15:52.160 better efficiency and better post profiles for training these very 0:15:52.200 --> 0:15:57.480 large foundation models. The investment in Anthropic is an equity investment. 0:15:57.560 --> 0:16:00.200 It's a convertible. Note we don't have a C on 0:16:00.240 --> 0:16:02.280 the board. We have no say in how that money 0:16:02.320 --> 0:16:05.560 gets spent, and so they can use that investment as 0:16:05.600 --> 0:16:06.160 they see fit. 0:16:07.640 --> 0:16:10.640 What's really interesting, and Enfropic have told us this on 0:16:10.680 --> 0:16:13.840 the program very recently, is that they are getting a 0:16:13.840 --> 0:16:14.240 lot of. 0:16:14.160 --> 0:16:15.960 Success through Bedrock. 0:16:16.040 --> 0:16:22.280 In getting their claud models out to enterprise commercial customers. 0:16:23.040 --> 0:16:27.000 What is Amazon and AWS getting from Anthropic and their 0:16:27.080 --> 0:16:30.320 activity from a kind of business volume perspective, you know, 0:16:30.600 --> 0:16:35.160 what is the benefit or the sales boost to AWS? 0:16:36.560 --> 0:16:40.120 Yeah, for sure. So Bedrock is our capability for making 0:16:40.160 --> 0:16:45.680 these foundation models available, and we make available models from Anthropic, 0:16:46.480 --> 0:16:49.400 and we also make available models from other providers including 0:16:49.520 --> 0:16:53.760 Amazon and other providers like stability for image generation. We 0:16:53.840 --> 0:16:57.480 have publicly available models from Meta and Mistrial and AI 0:16:57.560 --> 0:16:59.800 twenty one Labs and cohere and so on and so 0:17:00.240 --> 0:17:02.720 and so. What we found is that customers want to 0:17:02.720 --> 0:17:07.240 be able to access the best performing, most remarkable models 0:17:07.520 --> 0:17:10.879 in an environment which is private and secure, where their 0:17:10.960 --> 0:17:14.280 data is not reviewed by humans, does not go into 0:17:14.640 --> 0:17:18.120 training the underlying models, does not travel over the public Internet, 0:17:18.400 --> 0:17:22.440 and have all the additional capabilities which make you successful 0:17:22.440 --> 0:17:25.440 with generative AI, such as grounding these models in your 0:17:25.480 --> 0:17:28.240 own business data so they can answer questions on information 0:17:28.320 --> 0:17:30.200 that they haven't been trained on yet. And so that's 0:17:30.240 --> 0:17:31.919 what Badrock can enable the customers to do. 0:17:33.280 --> 0:17:36.080 Let's talk about chips, because you know that I love to. 0:17:36.280 --> 0:17:38.760 I think I'm right in saying you were at GtC, 0:17:39.440 --> 0:17:41.760 or of course you're aware of what was announcer at GtC, 0:17:41.920 --> 0:17:46.080 which is Blackwell and Thromics using Trainium and Inferentia. 0:17:46.160 --> 0:17:49.040 But just give me your and you are. 0:17:48.920 --> 0:17:52.159 An expert, give me your expert opinion and reaction to 0:17:52.240 --> 0:17:54.480 Blackwell and what you think you're up against there. 0:17:55.720 --> 0:17:59.960 Yeah, I mean Blackwell is a remarkable artificial intelligence plan 0:18:00.119 --> 0:18:05.159 form that combined GPUs and CPUs it's likely to be 0:18:05.320 --> 0:18:11.680 the absolute best beast providing machine learning training. And so 0:18:11.920 --> 0:18:14.960 what's really important, and our approach here maybe differs from others, 0:18:15.400 --> 0:18:19.840 is that optionality of compute and models really matters with 0:18:19.920 --> 0:18:24.119 generative AI, and so we make available in video GPUs. 0:18:24.160 --> 0:18:26.520 We were the first and we were the first to 0:18:26.520 --> 0:18:29.879 bring those GPUs to customers through AWS. We've got a 0:18:30.240 --> 0:18:33.800 very long, deep partnership with Nvidia that goes back nearly 0:18:33.840 --> 0:18:37.119 thirteen years. I've been on stage with Jensen, Jensen joined 0:18:37.119 --> 0:18:41.360 our conference. We've worked closely together for over a decade now. 0:18:42.119 --> 0:18:46.520 And in Vidia also run their own AI supercomputer on 0:18:46.560 --> 0:18:49.600 AWS that we're partnering to build together, which will have 0:18:49.680 --> 0:18:54.840 tens of thousands of Blackwell platforms connected together with very 0:18:54.840 --> 0:18:58.000 fast interconnects, which is going to deliver over four hundred 0:18:58.119 --> 0:19:01.160 exaFLOPS of compute power, so that n Video can build 0:19:01.160 --> 0:19:03.560 their own foundation models, simulate the Earth and so on 0:19:03.640 --> 0:19:06.360 and so forth, and so optionality really matters, and we're 0:19:06.359 --> 0:19:08.760 going to continue to build our own chips, We're going 0:19:08.760 --> 0:19:11.120 to continue to bring chips from other providers, and we're 0:19:11.119 --> 0:19:14.439 going to continue to invest and partner with n Video. 0:19:15.000 --> 0:19:17.720 That word Vice president of AI products at Amazon Web 0:19:17.760 --> 0:19:19.760 Service is really grateful for your time. And you know, 0:19:19.760 --> 0:19:32.200 I always love talking about AI accelerators and chips. Elon 0:19:32.280 --> 0:19:36.119 Musk's X is testing a feature let's users create or 0:19:36.240 --> 0:19:41.160 join community, so the focused on adult content or other 0:19:41.680 --> 0:19:44.639 not safe for work material, joining us with more as 0:19:44.640 --> 0:19:48.439 Bloombos Kirk Wagner, we talk about X wanting to be 0:19:48.480 --> 0:19:49.359 the everything app. 0:19:49.920 --> 0:19:52.679 This is a new area for them. What have you learned? 0:19:53.920 --> 0:19:54.080 Well? 0:19:54.119 --> 0:19:55.960 I think this sort of aligns with this idea that 0:19:56.000 --> 0:19:58.440 we've heard from Elon that you know, nothing is off 0:19:58.480 --> 0:19:59.800 limits really when it comes to. 0:19:59.840 --> 0:20:01.440 X unless it's illegal. Right. 0:20:01.480 --> 0:20:04.199 It's sort of a way I see to differentiate X 0:20:04.240 --> 0:20:07.119 from some of the other platforms. Now X has had 0:20:07.200 --> 0:20:09.520 you know, not safe for work content, usually we're talking 0:20:09.560 --> 0:20:13.200 about pornography, sexual content. It's had this for years. I 0:20:13.240 --> 0:20:16.040 had this well before Elon showed up. It didn't necessarily 0:20:16.119 --> 0:20:18.280 lean into it in the way that it seems like 0:20:18.320 --> 0:20:21.439 Elon is comfortable and willing to do. And again for me, 0:20:21.560 --> 0:20:23.200 I see this as a way for him to sort 0:20:23.200 --> 0:20:27.080 of differentiate X and and you know, hold the flag 0:20:27.160 --> 0:20:29.960 high that hey, look, anything goes here. That's been my 0:20:30.000 --> 0:20:32.160 mantra this whole time, and here I am to prove it. 0:20:33.080 --> 0:20:35.760 So, K, let's just WP me through the methodology of 0:20:35.800 --> 0:20:38.879 how we learned about this testing and feature. Right, this 0:20:39.000 --> 0:20:42.480 is not something that X is announced. Just just bring 0:20:42.480 --> 0:20:43.280 me your reporting. 0:20:44.440 --> 0:20:48.639 Sure, So got a tip from a guy, a researcher 0:20:48.680 --> 0:20:52.960 at Watchful. He is basically his is you know what 0:20:53.000 --> 0:20:55.400 he does. He goes and he finds unreleased features within 0:20:55.440 --> 0:20:58.439 these apps, and so he reached out with some screenshots 0:20:58.440 --> 0:21:00.879 and showed us that they're testing this. The way that 0:21:00.920 --> 0:21:03.600 it works is that if you're a user that's creating 0:21:03.680 --> 0:21:06.360 a community on exit, community is essentially just a group. 0:21:06.880 --> 0:21:08.560 You could go into settings and you could, you know, 0:21:09.040 --> 0:21:12.159 hit a button that says, hey, this group is going 0:21:12.200 --> 0:21:15.800 to contain adult content or not safe for work content. 0:21:16.080 --> 0:21:18.240 The group then gets a label to specify that. What 0:21:18.320 --> 0:21:20.280 we don't know is if they're going to age gate 0:21:20.400 --> 0:21:23.719 these groups. So X has rules that if you're under eighteen, 0:21:23.760 --> 0:21:27.960 you're not supposed to have access to adult content. Presumably 0:21:28.000 --> 0:21:29.840 that will apply to groups as well, But when we 0:21:29.880 --> 0:21:32.520 reached out to the company, they declined to comment and 0:21:32.560 --> 0:21:34.360 share any of the specifics with us. 0:21:35.280 --> 0:21:38.200 We just have fifteen seconds or so, but just remind 0:21:38.240 --> 0:21:39.480 me about your book. 0:21:40.080 --> 0:21:43.600 Oh thank you, Ed, Battle for the Bird, the story 0:21:43.600 --> 0:21:47.280 of Twitter and Elon Muskt's out right now. You know, 0:21:47.320 --> 0:21:49.960 it explains a lot of why we're here right now 0:21:50.000 --> 0:21:52.080 talking about this, so I hope people will pick it up. 0:21:52.920 --> 0:21:55.000 All right, bloom Vis Kat Wagner, I just wanted to 0:21:55.000 --> 0:21:57.359 make sure that you've got the opportunity to tell us 0:21:57.359 --> 0:22:07.399 that thank you very much for your time. Welcome back 0:22:07.400 --> 0:22:10.680 to Bloomberg Technology, Ed Lovelow here in San Francisco. As 0:22:10.720 --> 0:22:12.359 we said earlier in the show, it is the final 0:22:12.400 --> 0:22:15.400 trading day of the first quarter of twenty twenty four 0:22:15.440 --> 0:22:18.040 in the moment, this Thursday, this is what it looks like. 0:22:18.119 --> 0:22:20.800 And remember it's a short week here in the US 0:22:20.920 --> 0:22:23.840 Good Fridays a markets holiday. Then, as that one hundred 0:22:23.880 --> 0:22:25.320