WEBVTT - Twitter becomes X and Apple Keeps iPhone Shipments Steady 0:00:01.280 --> 0:00:05.600 From Mahard where Innovation, Money and power Collie in Silicon 0:00:05.680 --> 0:00:06.560 Vallet NBN. 0:00:06.880 --> 0:00:10.960 This is Bloomberg Technology with Caroline Hyde and Ed lud Love. 0:00:24.800 --> 0:00:27.080 I'm Caroline hide A Bloomberg's World headquarters in New York 0:00:27.080 --> 0:00:28.040 and Ludlow He's off. 0:00:28.320 --> 0:00:30.320 This is Bloomberg Technology coming up. 0:00:30.400 --> 0:00:34.000 Twitter becomes X in a musk, makes some overnight changes 0:00:34.000 --> 0:00:35.400 to the look of the social network. 0:00:35.680 --> 0:00:37.320 What's the vision for the company? 0:00:37.440 --> 0:00:40.920 We discuss, plus Apple planning to keep shipments steady for 0:00:40.920 --> 0:00:43.519 the latest iPhone fifteen. Will break down why the company 0:00:43.560 --> 0:00:47.000 is still so confident with eighty five million being targeted 0:00:47.040 --> 0:00:50.840 despite the decline in the smartphone market. And Sam Altman's 0:00:51.120 --> 0:00:54.640 other project, world coin saws on the first day of trading. 0:00:54.720 --> 0:00:57.120 We'll dig into the details of the token and the 0:00:57.160 --> 0:01:00.320 project from the open AIICEO. First, let's I can in 0:01:00.360 --> 0:01:04.520 the broader markets. Well, some pretty downbeat economic days to globally. 0:01:04.560 --> 0:01:05.280 Abagail did to. 0:01:05.200 --> 0:01:08.679 Them there certainly is, especially in Germany, pretty shocking and 0:01:08.720 --> 0:01:11.040 maybe suggesting that maybe some sort of a global economic 0:01:11.080 --> 0:01:12.240 slowdown could be ahead. 0:01:12.400 --> 0:01:13.640 But here in the US we do have the. 0:01:13.640 --> 0:01:16.320 S and P five hundred climbing for a second day 0:01:17.000 --> 0:01:19.280 What makes this interesting is the fact that you have 0:01:19.600 --> 0:01:23.399 the cebo Vix, that volatility index also hire. Typically when 0:01:23.440 --> 0:01:26.000 stacks go hired, that goes lower. So it suggests that 0:01:26.080 --> 0:01:28.800 maybe in this week, as big tech earnings really kick 0:01:28.840 --> 0:01:31.759 off in Earnest, that we could have some fireworks ahead. Now, 0:01:31.800 --> 0:01:35.240 one stock that's doing really quite well today, Apple, of course, 0:01:35.280 --> 0:01:38.720 on this report that the company has ordered enough parts 0:01:38.760 --> 0:01:41.520 to think that they are going to be they're basically 0:01:41.560 --> 0:01:43.800 holding their iPhone shipment plan for this year of eighty 0:01:43.800 --> 0:01:45.560 five million units, flat. 0:01:45.280 --> 0:01:45.880 To last year. 0:01:45.920 --> 0:01:48.720 The stock being hired suggests that investors may be relieved 0:01:48.920 --> 0:01:52.000 that it's flat, that it's not a decline. As for 0:01:52.040 --> 0:01:54.320 the year, well, it's been all about this big tech rally. 0:01:54.560 --> 0:01:56.680 The first half was the best half on record. Right 0:01:56.680 --> 0:01:59.960 now that nazak one hundred forty one percent on the year. 0:02:00.120 --> 0:02:03.320 It's only July this earning season, though, Caroline, it's going 0:02:03.360 --> 0:02:05.600 to be a real nail bier. We of course, tomorrow 0:02:05.800 --> 0:02:09.960 have Microsoft in alphabet. On Wednesday we have Meta, so 0:02:10.120 --> 0:02:13.360 lots and lots of stocks moving to the upside and 0:02:13.440 --> 0:02:15.760 the downside Meta. It's interesting just to note that at 0:02:15.760 --> 0:02:17.919 this point off of its lows, but down about eight 0:02:17.919 --> 0:02:20.200 tens of one percent. That's going to be a big 0:02:20.240 --> 0:02:22.600 one Caroline. As you know, on Wednesday, everybody looking for 0:02:22.639 --> 0:02:28.520 the year of efficiency, their new Twitter competition, plus the 0:02:28.560 --> 0:02:30.560 stock last week up one hundred and fifty percent of 0:02:30.600 --> 0:02:32.320 the year, will the numbers justify? 0:02:32.400 --> 0:02:33.840 It's something to keep in mind. 0:02:34.040 --> 0:02:36.360 It's still a mid single digit growth number that they're 0:02:36.360 --> 0:02:38.800 looking for. It's going to be an interesting report for sure. 0:02:39.160 --> 0:02:40.960 Yeah, and I'll go be calling it Twitter for that 0:02:41.040 --> 0:02:41.880 much longer, certainly. 0:02:41.880 --> 0:02:43.000 Not a calling to Elon Musk. 0:02:43.080 --> 0:02:45.000 Let's get back to what apagail was just starting with 0:02:45.080 --> 0:02:48.839 the Apple biggest points contributor to the SMP today, let's 0:02:48.880 --> 0:02:51.000 talk about why I'm very pleased to say Mark Germans 0:02:51.000 --> 0:02:54.640 here with the latest reports according to people familiar, and 0:02:54.680 --> 0:02:58.080 they are sticking to eighty five million as their target 0:02:58.120 --> 0:03:00.920 for sales to the iPhone fifteen, which is pretty resilient 0:03:00.919 --> 0:03:02.119 if you think about the economy. 0:03:03.120 --> 0:03:05.880 That's right, So eighty five million units flat through the 0:03:05.880 --> 0:03:08.600 rest of the year for these next generation iPhones, four 0:03:08.600 --> 0:03:12.600 new models, two new iPhone fifteen Pro models to standard 0:03:12.600 --> 0:03:15.800 iPhone fifteen models. That means that the shipments that Apple's 0:03:15.800 --> 0:03:17.880 targeting are going to be flat for the third year 0:03:18.520 --> 0:03:19.000 in a row. 0:03:19.080 --> 0:03:21.520 Now, that's pretty good given everything. 0:03:21.120 --> 0:03:25.120 Going on economically, if you look at the Android market 0:03:25.120 --> 0:03:28.320 for smartphones, if you look at the larger consumer electronics market, 0:03:28.760 --> 0:03:30.079 flat is a good thing. 0:03:30.200 --> 0:03:30.359 Now. 0:03:30.400 --> 0:03:33.640 But let's give some context, some comparison here, right, the 0:03:33.720 --> 0:03:36.120 last two iPhone models, the iPhone thirteen line and the 0:03:36.120 --> 0:03:39.360 iPhone fourteen line, those were pretty basic upgrades. 0:03:39.440 --> 0:03:40.720 Not a lot new there, right. 0:03:40.640 --> 0:03:43.440 But the iPhone fifteen Pro models as well as the 0:03:43.440 --> 0:03:45.800 lower and iPhone fifteen models, they're actually going to be 0:03:46.440 --> 0:03:49.080 quite significant upgrades. They're going to have a redesign on 0:03:49.120 --> 0:03:51.800 the high end, they're going to be switching from stainless 0:03:51.800 --> 0:03:55.040 steel to titanium. They're going to be changing the charger 0:03:55.160 --> 0:03:58.280 from lightning to USBC, which is. 0:03:58.240 --> 0:03:59.600 The industry standard. 0:04:00.120 --> 0:04:02.800 You're going to see the dynamic island, the feature you're 0:04:02.800 --> 0:04:05.200 showing right now on TV on the lower end iPhone 0:04:05.240 --> 0:04:10.440 fifteen models. Big camera upgrades on both, even a bigger upgrade, 0:04:10.480 --> 0:04:13.280 particularly for zooming in on photos and videos on the 0:04:13.360 --> 0:04:16.640 highest and iPhone the fifteen Pro macs. You may see 0:04:16.640 --> 0:04:19.240 a little bit of a price increase internationally across the 0:04:19.279 --> 0:04:22.919 four model, so big iPhone upgrades this year. While flat, 0:04:23.160 --> 0:04:25.960 in my opinion, it's a little bit more nuanced. It's 0:04:26.000 --> 0:04:29.279 flat in a major iPhone upgrade cycle. All things considered, 0:04:29.320 --> 0:04:31.080 still fairly positive though, marg You've. 0:04:30.920 --> 0:04:31.800 Always got the nuance. 0:04:31.800 --> 0:04:34.440 And one of the nuances also that Apple doesn't really 0:04:34.480 --> 0:04:36.560 want us talking about these numbers anyway. They want us 0:04:36.560 --> 0:04:38.400 to think about the subscriptions. They want us to think 0:04:38.440 --> 0:04:41.880 about overall direction of travel rather than the intricacies of 0:04:41.920 --> 0:04:45.920 how many iPhones they sell. But on the top end 0:04:45.920 --> 0:04:48.760 of the bottom end, what's more important. Are they still 0:04:48.960 --> 0:04:51.159 really a luxury item that can charge us more? 0:04:52.800 --> 0:04:54.839 You know, I think it's interesting Apple made a change 0:04:54.920 --> 0:04:56.960 I believe it was five years ago now, four or 0:04:57.000 --> 0:04:59.640 five years ago now where they stopped reporting unit sales 0:05:00.200 --> 0:05:02.800 for their individual products like the iPhone, the iPad, etc. 0:05:03.240 --> 0:05:04.920 And they move to revenue only now. 0:05:04.960 --> 0:05:07.960 At the time, they did that because unit sales were slowing, 0:05:08.640 --> 0:05:11.320 so in terms of overall units, those were going. 0:05:11.080 --> 0:05:12.920 Down in terms of how many they were selling. 0:05:13.600 --> 0:05:16.159 But at the same time, revenue is going up because 0:05:16.160 --> 0:05:18.279 of the pricing creases, right, So they do want us 0:05:18.320 --> 0:05:21.320 to focus on the revenue because that is what is increasing. 0:05:21.600 --> 0:05:24.000 And in terms of the devices being a luxury item, 0:05:24.640 --> 0:05:28.320 I would say somewhat right. Phone prices overall across the 0:05:28.480 --> 0:05:30.920 entire market have been going up. You're seeing a lot 0:05:30.960 --> 0:05:35.640 of Android phones, Google phones getting in that pricing tier. 0:05:35.800 --> 0:05:38.240 Apple at this point doesn't even sell the most expensive 0:05:38.240 --> 0:05:40.080 phone in the market. Those would be the foldable phone 0:05:40.080 --> 0:05:43.240 sold by Samsung, Google and some of the Chinese players. 0:05:43.680 --> 0:05:45.599 But I think Apple will get there, right. 0:05:45.400 --> 0:05:48.760 If they're continuing to increase storage, add new camera capabilities. 0:05:49.400 --> 0:05:52.440 Next year actually is going to be another iPhone upgrade. 0:05:52.480 --> 0:05:56.000 Of note, they're going to increase the screen sizes marginally, right, 0:05:56.080 --> 0:05:57.560 That could add some pricing. 0:05:57.240 --> 0:05:58.239 Pressure there as well. 0:05:58.680 --> 0:06:01.080 So clearly I would say they're luxury item, but they're 0:06:01.080 --> 0:06:02.520 not at the very very high end. 0:06:02.560 --> 0:06:03.320 But they'll get there. 0:06:03.720 --> 0:06:06.200 Marc German, we thank you for breaking down what is. 0:06:06.200 --> 0:06:08.400 The key story because it is the most valuable company 0:06:08.520 --> 0:06:11.320 more than three trillion dollars currently being added at the 0:06:11.320 --> 0:06:13.800 moment to its market cap. Three point zero three seven 0:06:13.839 --> 0:06:16.400 is where we stand. And remember, look, Apple is not 0:06:16.440 --> 0:06:18.880 going to give us its earnings. It's juicy details until 0:06:18.920 --> 0:06:21.200 next week August the third, But boy. 0:06:21.120 --> 0:06:22.960 Have we got a lot to be digesting this week. 0:06:23.040 --> 0:06:28.480 Alphabet Snap Microsoft, Mega names, Mega about a market capitalization 0:06:28.640 --> 0:06:31.440 going to be coming through with transparencies to whether they 0:06:31.440 --> 0:06:34.039 live up to those valuations. Let's get it to it 0:06:34.080 --> 0:06:36.960 with Liz Young therefore, head of Investment Strategy over As. 0:06:37.000 --> 0:06:39.720 So far, it's a big week, and it feels as 0:06:39.720 --> 0:06:42.280 though all eyes on some of these AI focused names, 0:06:42.320 --> 0:06:44.599 the Microsofts and indeed the alphabets. 0:06:45.920 --> 0:06:48.200 Yeah, it's a huge week, fed week, and all of 0:06:48.200 --> 0:06:50.640 these earnings coming in. It's really feeling like this is 0:06:50.640 --> 0:06:53.159 when the rubber hits the road for a lot of 0:06:53.200 --> 0:06:56.880 these companies that have seen so much optimism and multiple 0:06:56.920 --> 0:07:00.240 expansions so far in twenty twenty three. The common carry 0:07:00.240 --> 0:07:03.320 out of earnings is going to be hugely important because 0:07:03.320 --> 0:07:05.599 if you look ahead to the end of twenty twenty 0:07:05.600 --> 0:07:09.320 three and into twenty twenty four, earnings expectations are pretty 0:07:09.440 --> 0:07:12.800 high just across the board for the index. So companies 0:07:12.840 --> 0:07:15.080 are going to have to be able to justify the 0:07:15.200 --> 0:07:18.200 multiples that these stocks are trading at with their own 0:07:18.280 --> 0:07:21.000 expectations of what the next twelve months look like. 0:07:21.080 --> 0:07:22.480 So it's going to be. 0:07:22.560 --> 0:07:25.680 A really sticky situation if they can't justify that some 0:07:25.800 --> 0:07:29.560 of the AI enthusiasm. My concern has been that when 0:07:29.560 --> 0:07:31.920 you have a new theme and a new innovation that 0:07:32.040 --> 0:07:34.320 is supposed to take the world by storm or just 0:07:34.400 --> 0:07:38.400 even change the marketplace a little bit, themes usually take 0:07:38.440 --> 0:07:40.920 two to three years to really materialize, and they go 0:07:40.960 --> 0:07:44.360 through a price discovery phase along the way. So I'm 0:07:44.360 --> 0:07:47.200 not sure that we're going to get justification and gratification 0:07:47.280 --> 0:07:49.680 of this AI theme in the next six to twelve months, 0:07:50.040 --> 0:07:52.360 and that's something that these companies will have to grapple 0:07:52.360 --> 0:07:53.160 with in the market. 0:07:53.320 --> 0:07:55.480 I'm just thinking about price discovery of his last week, 0:07:55.480 --> 0:07:57.480 the Microsoft got to push higher in terms of its 0:07:57.880 --> 0:08:00.840 record market cap for itself because well, they're starting to 0:08:00.840 --> 0:08:03.200 outline how they're going to price for some of the 0:08:03.600 --> 0:08:06.200 add ons that we're getting with the big chat features, 0:08:06.240 --> 0:08:09.320 and it looked pretty toppy. People were impressed by the 0:08:09.320 --> 0:08:12.120 amount that they think they can charge. Ultimately, you've been 0:08:12.160 --> 0:08:15.240 impressed by the market capitalizations more broadly, do you think 0:08:15.280 --> 0:08:16.440 that we have moved. 0:08:16.160 --> 0:08:17.080 Too far too fast? 0:08:17.200 --> 0:08:20.360 We hold on to the level of outperformance and tech 0:08:20.400 --> 0:08:21.960 stocks that we saw on the first half of the year. 0:08:23.440 --> 0:08:25.640 Well, when you've got an index like the Nasdaq one 0:08:25.680 --> 0:08:28.200 hundred up forty five percent year to date, that's an 0:08:28.240 --> 0:08:31.560 outlier as far as performance goes, and I would say 0:08:31.560 --> 0:08:34.400 it's probably due for a little bit of steam coming 0:08:34.440 --> 0:08:37.120 out just because of how quickly things have run up. 0:08:37.679 --> 0:08:41.800 Expectations haven't changed too much from a fundamental perspective, So 0:08:42.160 --> 0:08:45.480 when you see that big dislocation, not only among different 0:08:45.520 --> 0:08:48.640 sized companies, you've got large caps that really outpaced small 0:08:48.679 --> 0:08:51.839 caps maybe until just recently, and when you've got certain 0:08:51.920 --> 0:08:56.000 sectors that handily outpaced other sectors, there usually is a 0:08:56.040 --> 0:08:59.040 little bit of mean reversion or just kind of closing 0:08:59.080 --> 0:09:02.520 that gap. Those big divergences don't last forever, so they 0:09:02.559 --> 0:09:05.839 do need to come back to a more rational place. Now, 0:09:05.880 --> 0:09:09.240 that doesn't necessarily mean that everything has to come crashing down. 0:09:09.559 --> 0:09:11.480 There's still an argument to be had, which a lot 0:09:11.520 --> 0:09:13.640 of the bulls will tell you, which is that the 0:09:13.679 --> 0:09:16.680 rest of the market can catch up rather than those 0:09:16.720 --> 0:09:20.079 big names having to come down. That being said, given 0:09:20.120 --> 0:09:22.480 the environment, given that we are on the precipice of 0:09:22.520 --> 0:09:25.720 what's expected to be another FED hike, it just doesn't 0:09:25.800 --> 0:09:29.080 quite make sense, especially for those what we would call 0:09:29.240 --> 0:09:33.480 long duration equities, to be trading at such lofty valuations 0:09:34.480 --> 0:09:37.360 when we haven't really finished the tightening cycle. Yet usually 0:09:37.360 --> 0:09:39.720 the market hits the skids a little bit when that 0:09:39.760 --> 0:09:41.000 tightening cycle stops. 0:09:41.440 --> 0:09:43.720 Of course, today was the day we're meant to see 0:09:44.240 --> 0:09:46.200 the NASDAT one hundred rebalancing. 0:09:46.360 --> 0:09:47.720 It's occurred, maybe a. 0:09:47.720 --> 0:09:50.199 Little bit of volatility in the run up, but did 0:09:50.200 --> 0:09:53.360 it make much changes for you? Do you think ultimately 0:09:53.360 --> 0:09:55.120 the NaSTA one hundred is a bench malt that can 0:09:55.160 --> 0:09:56.760 really be used for diversification. 0:09:59.160 --> 0:10:00.480 I think it can be used. 0:10:00.559 --> 0:10:02.599 I mean I don't know that it's something that necessarily 0:10:02.679 --> 0:10:05.680 is the epitome of diversification, given how top heavy it 0:10:05.760 --> 0:10:08.480 becomes at certain times, but that's just the nature of 0:10:08.520 --> 0:10:10.160 a market cap weighted index. 0:10:10.520 --> 0:10:11.520 The rebalancing. 0:10:11.640 --> 0:10:15.079 The actual day of rebalancing obviously isn't having too much 0:10:15.080 --> 0:10:17.400 of an effect. I think a lot of that probably 0:10:17.400 --> 0:10:19.520 got baked in when the announcement was made. You can 0:10:19.559 --> 0:10:23.440 extrapolate what's going to happen, but over time, as things 0:10:23.520 --> 0:10:26.240 change and as prices move, that's just always going to 0:10:26.280 --> 0:10:28.280 be the case with a market cap weighted index, which 0:10:28.320 --> 0:10:30.960 is why sometimes it becomes more of a risk not 0:10:31.080 --> 0:10:33.520 to own some of those names because you're under exposed 0:10:33.559 --> 0:10:35.360 to what's really driving broad markets. 0:10:35.360 --> 0:10:37.319 And driving investor sentiment. 0:10:37.559 --> 0:10:40.200 Yeah, a lot of those actively managed mutual funds have 0:10:40.240 --> 0:10:42.440 been under pressure, according to the likes of Gold and Sacks. 0:10:42.520 --> 0:10:44.240 Lastly, is I mean what about protection? 0:10:44.440 --> 0:10:46.680 If you all worried that we've gone too far, too fast, 0:10:47.280 --> 0:10:50.600 is it in any way well advantageous to be protecting 0:10:50.640 --> 0:10:51.560 the downside right now? 0:10:53.080 --> 0:10:53.360 Sure? 0:10:53.440 --> 0:10:54.960 Well, you know, I've been one of those people who 0:10:55.040 --> 0:10:57.280 is skeptical of this rally all the way up and 0:10:57.920 --> 0:11:00.600 have felt very very wrong all the way up. But 0:11:01.040 --> 0:11:04.079 that being said, it is always good to have protection 0:11:04.160 --> 0:11:06.440 in the portfolio. I would say it's even better to 0:11:06.480 --> 0:11:09.480 have it in the portfolio when you have valuations above 0:11:09.520 --> 0:11:12.360 the five, ten, and fifteen year averages, and when you 0:11:12.400 --> 0:11:15.880 have a VIX that seems pretty asleep at the wheel, that's. 0:11:15.640 --> 0:11:17.360 When it's kind of prime to spike. 0:11:17.600 --> 0:11:20.400 So although it feels like a ball and chain, it 0:11:20.440 --> 0:11:22.800 can feel like cement boots. To put protection in the 0:11:22.800 --> 0:11:26.000 portfolio in the midst of a rally, that's really the 0:11:26.040 --> 0:11:29.600 time when protection is going to pay off more Because 0:11:29.880 --> 0:11:32.400 maybe it's not under such strong demand. You can get 0:11:32.440 --> 0:11:34.920 it at a cheaper price, and then it's there if 0:11:34.960 --> 0:11:35.840 and when you need. 0:11:35.720 --> 0:11:38.160 It helps you sleep a bit better, maybe, Liz Young, 0:11:38.520 --> 0:11:41.040 SOI fi get some rest ahead of what is going 0:11:41.120 --> 0:11:43.079 to be a monumental week. We thank you so much 0:11:43.080 --> 0:11:52.160 for spending some time with us today. Remember, the end 0:11:52.160 --> 0:11:54.760 of last week we saw that seven leading AI companies 0:11:54.800 --> 0:11:59.040 in the United States agree to voluntary safeguards Linear Technologies Development, 0:11:59.240 --> 0:12:03.680 Amazon and Google, Inflection, Meta, Microsoft, Open EIE, all formerly 0:12:03.679 --> 0:12:07.200 making their commitment to new standards for safety, for security, 0:12:07.520 --> 0:12:09.480 and as well as trust. Was in a meeting with 0:12:09.520 --> 0:12:13.040 the President Biden at the White House on Friday afternoon. Now, 0:12:13.040 --> 0:12:15.720 the Biden administration has already been vowing to manage the 0:12:15.840 --> 0:12:18.520 risks of new tools even as they compete over the 0:12:18.520 --> 0:12:22.079 potential of artificial intelligence joining us. Now, I'm pleased to 0:12:22.080 --> 0:12:24.640 say someone who is at the meeting been thinking about 0:12:24.640 --> 0:12:27.720 safety for a long time, Anthropic president and co founder 0:12:27.800 --> 0:12:33.040 Daniella m Oday. And Daniella, these safeguards voluntary as they 0:12:33.080 --> 0:12:34.760 are a step in the right direction for you. 0:12:36.600 --> 0:12:36.800 Hi. 0:12:36.880 --> 0:12:38.800 First of all, thank you so much for having me 0:12:38.840 --> 0:12:43.120 here on the program today. And yes, we were very 0:12:43.160 --> 0:12:46.480 grateful to be invited to the conversation at the White 0:12:46.480 --> 0:12:49.920 House on Friday. Our CEO, Dario, my brother was there 0:12:50.080 --> 0:12:53.960 and had the opportunity to speak with the President and 0:12:54.000 --> 0:12:57.520 with the other industry leaders, and yes, you know, I 0:12:57.559 --> 0:13:01.360 think this is an incredible first step towards really making 0:13:01.400 --> 0:13:05.240 sure that we are working together at the industry level, 0:13:05.440 --> 0:13:09.080 with government, with civil society in thinking about how to 0:13:09.480 --> 0:13:13.439 develop these systems in ways that are safe, that are secure, 0:13:13.640 --> 0:13:15.880 that are trustworthy, and so we were very happy to 0:13:15.880 --> 0:13:17.439 be part of that conversation on Friday. 0:13:17.679 --> 0:13:20.800 Of course, many have sort of tried to understand how 0:13:20.880 --> 0:13:25.240 really authentic some leaders in AI are about sort of 0:13:25.280 --> 0:13:29.120 being regulated, about being overseen. How deeply do you think 0:13:29.120 --> 0:13:32.160 that runs when actually everyone's also just trying to race 0:13:32.280 --> 0:13:34.400 to ensure that they are the first to innovate. 0:13:36.080 --> 0:13:38.400 You know, I think that these two things, you know, 0:13:38.480 --> 0:13:41.880 really don't have to be intention And one of the 0:13:41.920 --> 0:13:45.600 things that I think Andthropic has really sort of built 0:13:45.679 --> 0:13:49.560 kind of our ideas around is this concept that you 0:13:49.600 --> 0:13:53.719 can develop these very transformative systems in ways that are 0:13:53.840 --> 0:13:57.920 robustly safe. With the launch of Claude two that we had, 0:13:58.040 --> 0:14:00.120 you know, just a couple of weeks ago, one of 0:14:00.160 --> 0:14:02.959 the things we really emphasized and focused on was sort 0:14:03.000 --> 0:14:05.920 of this commitment to making the models, you know, as 0:14:05.920 --> 0:14:09.400 safe as possible and really working to improve on things 0:14:09.480 --> 0:14:14.000 like helpfulness, honesty, and harmlessness. And so I think this 0:14:14.080 --> 0:14:17.360 kind of industry discussion as a whole around how to 0:14:17.520 --> 0:14:21.120 you know, move forward with this innovative technology, but also 0:14:21.160 --> 0:14:23.560 really ensure that it's done in a way that is 0:14:23.840 --> 0:14:26.680 you know, safe and secure is so important. 0:14:27.040 --> 0:14:30.040 Claude too, of course, is meant to be less susceptible 0:14:30.040 --> 0:14:32.680 to manipulation than other chapel So you really are thinking 0:14:32.680 --> 0:14:36.800 about safety kindness, but how how do you go about 0:14:36.800 --> 0:14:38.040 building that into a model. 0:14:39.360 --> 0:14:42.160 Yes, so you know, of course, you know, no model 0:14:42.200 --> 0:14:45.680 on the market is one hundred percent you know immune 0:14:45.920 --> 0:14:48.800 from you know, jail breaks or is perfectly safe. But 0:14:48.920 --> 0:14:51.760 really our goal has been to try and provide a 0:14:51.760 --> 0:14:54.640 model that's as safe as possible today, and we do 0:14:54.720 --> 0:14:57.920 that through you know, a few different techniques. One of 0:14:57.960 --> 0:15:01.600 them is something called constitutional and this is really a 0:15:01.840 --> 0:15:06.080 process of training the model with kind of guidelines around 0:15:06.240 --> 0:15:09.720 how to be you know, safe and helpful to users, 0:15:10.240 --> 0:15:14.760 really trying to maximize the honesty and also harmlessness of 0:15:14.760 --> 0:15:17.560 the model, so making sure it doesn't output you know, 0:15:17.760 --> 0:15:22.240 negative biased, toxic content or you know, making it harder 0:15:22.320 --> 0:15:25.160 to you know, assist a human in doing harm. 0:15:25.520 --> 0:15:29.360 You can course, taking your time in releasing product updates, 0:15:29.560 --> 0:15:31.640 has that in any way been attention with your own 0:15:31.680 --> 0:15:33.360 back as you've raised a lot of money, if people 0:15:33.400 --> 0:15:36.400 wanted you to be faster, or have they understood that 0:15:36.720 --> 0:15:39.440 time is necessary if you're going to be focused on safety. 0:15:41.000 --> 0:15:42.880 So again, you know, I really think of this as 0:15:42.960 --> 0:15:44.760 kind of, you know, a balancing act. 0:15:44.840 --> 0:15:45.000 Right. 0:15:45.120 --> 0:15:48.360 We have had Claude internally and we've been using it 0:15:48.440 --> 0:15:51.640 and testing it for some time, and we also really 0:15:51.680 --> 0:15:54.880 just wanted to make sure that the model that we're 0:15:54.920 --> 0:15:57.200 putting out onto the market, right, that Claude dot ai 0:15:58.080 --> 0:16:00.920 was as safe as possible, right, so that not just 0:16:00.960 --> 0:16:04.440 businesses but individuals are kind of signing up to play 0:16:04.480 --> 0:16:07.720 around with it that you know, it's hopefully you know, 0:16:07.800 --> 0:16:10.480 as safe as possible and certainly safer than you know 0:16:10.560 --> 0:16:13.280 claud one, you know, our previous model that was on 0:16:13.320 --> 0:16:13.760 the market. 0:16:13.920 --> 0:16:17.360 I meanwhile, being able to analyze, summarize vast quantities of 0:16:17.440 --> 0:16:21.280 information give us the productivity gains the rule looking for 0:16:21.320 --> 0:16:25.000 I'm interested as to when you're thinking about developing not 0:16:25.040 --> 0:16:28.440 only the models internally, but doing them safely and within 0:16:28.720 --> 0:16:31.400 future regulation. How do you look at what Europe's up 0:16:31.400 --> 0:16:32.800 to in terms of trying to set the rules of 0:16:32.800 --> 0:16:33.120 the road. 0:16:34.360 --> 0:16:36.320 Yeah, so, you know, I think this is a really 0:16:36.400 --> 0:16:39.360 again kind of important conversation that we have been having, 0:16:39.680 --> 0:16:44.480 you know, both with US policymakers and future regulators, but 0:16:44.560 --> 0:16:46.880 really abroad as well. Right, I think so much of 0:16:46.920 --> 0:16:49.520 what we've seen in the past you know, six to 0:16:49.560 --> 0:16:53.200 twelve months, is that artificial intelligence is becoming this kind 0:16:53.240 --> 0:16:56.600 of worldwide phenomenon, Right, It's not just something that's the 0:16:56.640 --> 0:17:00.120 province of you know, specific country or countries. And so 0:17:00.160 --> 0:17:02.640 I think obviously the conversations that are having you know 0:17:02.760 --> 0:17:06.360 here but also in the EU are just incredibly important 0:17:06.400 --> 0:17:10.159 from a data privacy and uh you know, security and 0:17:10.200 --> 0:17:13.360 safety perspective, and a conversation you know, we've really been 0:17:13.400 --> 0:17:14.560 actively a part of as well. 0:17:14.840 --> 0:17:18.520 Of course, prior to Anthropic and helping co found it, 0:17:18.800 --> 0:17:21.080 you were at open AI. You're also at STRIPE as 0:17:21.080 --> 0:17:23.520 a risk manager. How do you compare the way in 0:17:23.560 --> 0:17:27.399 which regulation is top of mind full the focus on 0:17:27.440 --> 0:17:29.919 AI visa v. Fintech visa V. I mean we will 0:17:29.960 --> 0:17:31.720 think about the blow up a crypto for example. 0:17:33.000 --> 0:17:35.720 Yeah, I mean I really think that this Uh, really 0:17:35.800 --> 0:17:37.760 just this concept that I kind of come back to 0:17:37.960 --> 0:17:42.400 around this kind of public private kind of partnership or 0:17:42.680 --> 0:17:46.560 you know, communication norms I think are just incredibly important, 0:17:46.600 --> 0:17:48.800 and I think that those are you know, some of 0:17:48.840 --> 0:17:51.679 the lessons learned from kind of previous industries. Right is 0:17:52.040 --> 0:17:55.879 really having you know, communication early and often. 0:17:56.040 --> 0:17:56.200 Right. 0:17:56.320 --> 0:17:59.680 I think at Anthropic we view part of our role 0:17:59.800 --> 0:18:05.040 in industry as helping to give policymakers and civil society 0:18:05.080 --> 0:18:09.119 and academics access to our information. Right So we've published 0:18:09.560 --> 0:18:12.679 more than fifteen safety papers. Anyone can read them on 0:18:12.720 --> 0:18:16.560 our website, and we develop policy briefings because we really 0:18:16.920 --> 0:18:19.760 view this as part of our role. Right is helping 0:18:19.760 --> 0:18:24.439 to inform people more broadly about potential safety, safety topics 0:18:24.440 --> 0:18:25.080 and questions. 0:18:25.480 --> 0:18:28.399 Daniela Amade, great to have some time with you. Thank you. 0:18:28.440 --> 0:18:31.520 Anthropic President Anna d co founder, whose brother had been 0:18:31.560 --> 0:18:34.440 there at the meeting with the White House on Friday. Meanwhile, 0:18:34.440 --> 0:18:38.600 coming up, Albenheimer, was that your weekend, Well, it was 0:18:38.640 --> 0:18:40.840 many people's weekend. It sent shot ways to the box 0:18:40.880 --> 0:18:43.080 office and we got all the numbers for you. Next 0:18:43.600 --> 0:19:01.439 come New York. This is roombag technology. Let's talk about 0:19:01.640 --> 0:19:05.639 what was hot this weekend movies. Parently, Bobby Oppenheimen brought 0:19:05.680 --> 0:19:08.720 out movie fans in their droves, making this weekend's box 0:19:08.760 --> 0:19:09.800 office revenue. 0:19:09.600 --> 0:19:11.160 All in double from a year ago. 0:19:11.480 --> 0:19:15.800 Joining us really about the business uplift from Babenheimer preveig 0:19:15.840 --> 0:19:20.160 intelligence is Geita Raganathan and either I mean, wow, Warner 0:19:20.160 --> 0:19:22.280 Brothers must be pleased, so too must be some of 0:19:22.320 --> 0:19:26.520 the cinema chain Cinney World and AMC. But ultimately, is 0:19:26.600 --> 0:19:28.320 this as amazing as it seems to be. 0:19:29.480 --> 0:19:33.399 It's absolutely amazing. It's unprecedented. I mean, you know, this 0:19:33.560 --> 0:19:36.120 kind of foot traffic Caroline is something that you would 0:19:36.200 --> 0:19:38.840 reserve for let's say a Marble or a Star Wars 0:19:39.000 --> 0:19:42.000 kind of a phenomenon, right, and then to have two 0:19:42.080 --> 0:19:45.520 movies like this, which which are really polar opposites, you know, 0:19:45.560 --> 0:19:49.000