Speaker 1: We're from markhard where Innovation, Money and Power Collie in
Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed Ludlowly.
Speaker 2: From San Francisco. This is Bloomberg Technology coming up full
Speaker 2: market coverage, a stock stage, a Tuesday turnaround after six
Speaker 2: point five trillion dollars was white from global markets Monday. Plus,
Speaker 2: we sit down with the CTO of palenteer is Ai
Speaker 2: demand boosts, the company's outlook, and the US rules. Google
Speaker 2: illegally monopolized the search market through exclusive deals. It's a
Speaker 2: bit of a sigh of relief on Tuesday. Call it
Speaker 2: a dead cat bounce, call it a turnaround. This is
Speaker 2: what financial markets look like. Notable gains on the Nasdaq
Speaker 2: one hundred chip stocks recovering after it was technology that
Speaker 2: led the selling in equity markets on Monday. A lot
Speaker 2: of volatility around growth concerns and also economic data. And
Speaker 2: then Bitcoin is interesting as well. You saw a fifty
Speaker 2: six thousand US dollars per token. Later in the show
Speaker 2: will go deeper on that. Let's move over to the
Speaker 2: single names, because earnings are a big part of the
Speaker 2: story in the moment. There are two in particular that
Speaker 2: we're looking at. I really want to focus on Uber
Speaker 2: up almost eight percent, strong growth, brooking, strong on the
Speaker 2: bottom line. We're going to get to our reports on
Speaker 2: that in just a moment, and then coming up the
Speaker 2: CTO of Palenteer updated outlook for revenue, updated outlook for
Speaker 2: profit AI demand from both commercial and government customers. That's
Speaker 2: going to be a really interesting conversation in the next segment.
Speaker 2: Stay tuned for it. We'll go back to markets. Joining
Speaker 2: us for more is David Bunsen, chief investment Officer and
Speaker 2: the Buntson Group, which oversees five point seven billion dollars
Speaker 2: in assets under management. The story Monday was about some
Speaker 2: of the megacap tech names, some of those that have
Speaker 2: fueled the gains in the first half of the year.
Speaker 2: Some of those names you were particularly concerned about, so
Speaker 2: you sat on the sidelines away from them. How do
Speaker 2: you react to the last twenty four hours?
Speaker 3: Then, well, it's interesting that with that sector, it wasn't
Speaker 3: really a Monday story per se. It had started July tenth.
Speaker 3: The Nasdaq's drawdown had reached thirteen and a half percent yesterday,
Speaker 3: so there was already quite a bit of slide going on,
Speaker 3: and I think that does stem from the overvaluation. It's
Speaker 3: pretty stunning when you see a name like Nvidia that
Speaker 3: had been down twenty five to thirty percent and was
Speaker 3: still trading at about fifty nine times earnings thirty times
Speaker 3: sales after such a violent correction.
Speaker 4: I think even today.
Speaker 3: When you look at Apple still being negative with this
Speaker 3: kind of bounce back rally today, it does feel to
Speaker 3: me like a rotation of leadership is very well underway.
Speaker 2: You raise a point that we reiterated in yesterday's show
Speaker 2: that Friday marks four straight weekly declared on the Nasdaq
Speaker 2: one hundred. Right, you were already in correction territory. I
Speaker 2: guess a question for someone like you, David, is what
Speaker 2: do you do now? You know, is the draw down
Speaker 2: or so called technical correction enough that you start to
Speaker 2: look at some of the names that for many they
Speaker 2: are teenas or there is no alternative to holding them.
Speaker 3: Well, there are probably investor categories that might want to
Speaker 3: look at something there. They certainly shouldn't be doing it
Speaker 3: because they believe it's reached a value. These are still
Speaker 3: extremely expensive stocks for US as dividend growth investors. The tiny,
Speaker 3: little paltry dividend that the NVIDIAs, Metas and Apples pay
Speaker 3: is not enough to wet our beak, and so they
Speaker 3: would have a long way to go to start returning
Speaker 3: cash to shareholders for us.
Speaker 4: To be attracted.
Speaker 3: But even apart from our dividend growth orientation, the valuations
Speaker 3: are still very high. I began professionally managing money in
Speaker 3: the nineteen nineties, and so I will be forever scarred
Speaker 3: by the reality of what happens when you overpay for
Speaker 3: very good companies, very big and successful companies that have
Speaker 3: a generational success, and yet their stock goes nowhere for ten, fifteen,
Speaker 3: twenty years, and Cisco's case still.
Speaker 4: Hasn't got back to nineteen ninety nine levels.
Speaker 3: Those stories are real, and I believe very much they
Speaker 3: will be the case with some of these names too.
Speaker 4: I think investors have to be careful.
Speaker 2: I find names like Cisco, maybe even Adele interesting as
Speaker 2: sort of appendages to the infrastructure build out that's happening.
Speaker 2: I wrote about it in Today's Tech Daily. Right if
Speaker 2: you think about the growth concern, investmental capital expenditures into
Speaker 2: data center seem to be plowing ahead regardless of short
Speaker 2: term jitters, Is there an opportunity for you in that space, David,
Speaker 2: or do you think it's just overdone already at this point.
Speaker 3: Well, and that's a very interesting story because there you
Speaker 3: can get cash flow. And so, for example, Blackstone has
Speaker 3: become one of the largest investors institutionally in the data
Speaker 3: center's story, and we're able to get a real yield
Speaker 3: and become a landlord, and so to speak to data
Speaker 3: center become a little bit less concerned with the underlying
Speaker 3: business fundamentals as to how much Microsoft's going to buy
Speaker 3: from Nvidia or what the monetization of AI is going
Speaker 3: to be. A lot of those questions are not answered,
Speaker 3: They're not going to get answered in time soon. But
Speaker 3: data center becomes a story that from a brick and
Speaker 3: mortar standpoint, you can make money in.
Speaker 2: I find that so interesting. Never before did I think
Speaker 2: I'd be writing about reates in my technology newsletter. And
Speaker 2: I use their forecast or data to kind of look
Speaker 2: at the market pipeline as a whole earnings. You know,
Speaker 2: this morning we wake up pallentis strength uber strength. Last
Speaker 2: week we learned from Microsoft in particular that if you
Speaker 2: miss estimates, you're in trouble. But there's still a long
Speaker 2: way to run in this earnings period. Have you taken
Speaker 2: a sort of lesson on the whole from those that
Speaker 2: have already reported.
Speaker 4: Yeah, about seventy five percent of the way through.
Speaker 3: It does appear that overall earnings growth is not going
Speaker 3: to be eight percent is targeted on the quarter, but
Speaker 3: probably closer to five percent.
Speaker 4: Year over year, earning's.
Speaker 3: Growth still looks like it going to be about twelve percent,
Speaker 3: but some base effects are going to make that a lot.
Speaker 4: Harder in the next quarters.
Speaker 3: And so I think the story of Microsoft is a
Speaker 3: kind of microcosm of the underlying reality that there's this
Speaker 3: sort of feedback loop at play that Microsoft goes up
Speaker 3: because it's buying a lot from Nvidia, and then Video
Speaker 3: goes up because Microsoft's buying a lot from it, and
Speaker 3: of course there's a lot of other customers. But this
Speaker 3: idea that AI doesn't ever have to tell you how
Speaker 3: it's going to make money for real other than an
Speaker 3: infrastructure backbone story is problematic. And if those revenues are
Speaker 3: going to be going down before they've converted to profits,
Speaker 3: then you have an unwind that has to take place
Speaker 3: of a feedback loop.
Speaker 2: David for the technology set to them, what happens in
Speaker 2: the second half of the day.
Speaker 3: Ye, I would be somewhat unconstructive on the space on
Speaker 3: a valuation basis, But we are hardly the types of
Speaker 3: technology investors that you normally would be speaking to. Just
Speaker 3: to the sense of our boring insistence on free cash flow,
Speaker 3: you know, we own Broadcom in the portfolio. We don't
Speaker 3: believe it got to the valuation overstretch that Nvidia has.
Speaker 3: And then we own old tech names like IBM and
Speaker 3: Cisco that have ongoing free cash flow from oldline businesses,
Speaker 3: but obviously new growth opportunities. That's the way we would
Speaker 3: prefer to play it, just simply because we think perfection
Speaker 3: was priced in to the more contemporary technology names.
Speaker 2: David, I do not for a second. Thank you are boring.
Speaker 2: David Bunsen, CEO at the Punts and Groove, has been
Speaker 2: great sorts you. Thank you very much. Let's get back
Speaker 2: to the earning story. Speak about Uber reporting results before
Speaker 2: the opening bell this morning. I want to bring in
Speaker 2: Bloomberg's Nati Lung, who covers the gig economy platform for us,
Speaker 2: and just go straight to gross bookings. It's basically everything
Speaker 2: that runs through the Uber platform apart from the tips,
Speaker 2: but within that there are loads of stories. What did
Speaker 2: you learn about Uber, Natalie, Yes.
Speaker 5: So from growth brookings it includes ride share and delivery
Speaker 5: and user frequency and as well as driver activity on
Speaker 5: the platform is all time high. And this result is
Speaker 5: really showing how Uber's strategy of pushing into new areas
Speaker 5: new use cases are playing out really well for them.
Speaker 5: And for example, they launch affordable options such as shuttles
Speaker 5: and lower cost shared rides. That's sort of contributing to
Speaker 5: the counterstick close story that the CEO talked about on
Speaker 5: their call and helping them sort of be whether they're
Speaker 5: sort of consumer downturn bluebergs.
Speaker 2: And that's all across Uber, and there's a lot more
Speaker 2: to come in that space. Of course, Door Dash Uber
Speaker 2: and then we get Lift and that will give us
Speaker 2: a bigger picture of the strength in that market. Coming
Speaker 2: up on this program, we're joined by Shyam Sanka, CTO
Speaker 2: of Palenteer discussing the company's earnings released after the closing
Speaker 2: bell Monday. One of the big movers to the upside
Speaker 2: this morning. Commercial customers, military customers, government customers. That's the conversation.
Speaker 2: This is Bloomberg Technology. Let's keep it going with Ernie's coverage.
Speaker 2: Palenteer out with results, boosting its revenue guidance for the
Speaker 2: year to arrange of two point seventy four billion to
Speaker 2: two point seven five billion, ahead of estimates, with AI
Speaker 2: demand also helping Palenteer boost its profit outlook. There's been
Speaker 2: growth in business with government and in commercial customers. Aipalenteers
Speaker 2: artificial intelligence platform and other products has quote transformed the
Speaker 2: business in level more than a year. CTO Sean Sanka
Speaker 2: joins us to discuss. Sean on the call this transformation
Speaker 2: that doctor cart was talking about. I've been to a
Speaker 2: few AIP cons, but as CTO, you're working on it.
Speaker 2: I think just explain the basics of that. What's changed
Speaker 2: with Impaleteer from a technology perspective and in the domain
Speaker 2: of artificial intelligence.
Speaker 6: Well, what you really see in the market is this
Speaker 6: massive bottleneck between prototyping and production, and that happens to
Speaker 6: be where AIP is most differentiated.
Speaker 7: And that differentiation is built on a decade of deep.
Speaker 6: Technical investments, investments like the ontology, the OSDK, the security
Speaker 6: and business primitives that we built throughout the platforms like functions, actions, automations,
Speaker 6: and this pipeline that we have that's really focused on
Speaker 6: addressing that, and I think what's changed as you've been
Speaker 6: to these AIP cons is that the market now understands
Speaker 6: how severe that bottleneck is. I think your last guest
Speaker 6: was just talking about that. Where it is so easy
Speaker 6: to build a charismatic AI prototype. That's about the amount
Speaker 6: of effort of building a PowerPoint slide, but it's also
Speaker 6: that amount of utility. An Unlike traditional deterministic software, this
Speaker 6: kind of powerful stochastic genie that is LM's, it requires
Speaker 6: a lot more work to get to production, maybe ten
Speaker 6: to one hundred times as much work, and that requires
Speaker 6: the tool chain that we've assembled with AP.
Speaker 2: I've had a few conversations with your CEO at his
Speaker 2: cap about his frustration with the PowerPoint deck versus the
Speaker 2: reality of shipping products. We'll put that to one side
Speaker 2: for now. Show on there was a heavy emphasis on
Speaker 2: working with the military in the written materials and on
Speaker 2: the call. Could you just get the basics of what
Speaker 2: you'll work with the military looks like present day.
Speaker 6: Look In the commercial world, you call it a value
Speaker 6: chain from the hand of your supplier to the hand
Speaker 6: of your customer. In the military, it's about a kill
Speaker 6: chain from censor to shooter. But really, at the most
Speaker 6: abstract level, it's the same thing. We're trying to enable
Speaker 6: our war fighters to have information dominance and decision advantage.
Speaker 6: How can I see you know, to quote Sun Sou,
Speaker 6: if you know your enemy and you know yourself, you're
Speaker 6: going to win, and so you know, how can I
Speaker 6: see everything there is to know about the threat? How
Speaker 6: can I understand everything I have to combat and deter
Speaker 6: any aggression from those threats? And when you look at
Speaker 6: the geopolitical landscape right now, it could not be more dangerous.
Speaker 6: Everything that's going on in Eastern Europe, the massive tensions
Speaker 6: that exist in the Middle East, and the ongoing issues
Speaker 6: that we had in de during aggression in the Pacific.
Speaker 2: Beyond sort of the importance of data. Where does plan
Speaker 2: to sit in the defense ecosystem or even the defense
Speaker 2: supply chain. Are you sort of very closely aligned with
Speaker 2: hardware makers the aerospace community, or is the model more
Speaker 2: focused on you just going direct to different arms of
Speaker 2: the defense base with government.
Speaker 7: Yeah, we're touching all of it. One of the things
Speaker 7: I'm most excited about.
Speaker 6: I've been calling the First Breakfast as an antidote to
Speaker 6: the nineteen ninety three last Supper that led to the
Speaker 6: consolidation of our defense industrial base, where it went from
Speaker 6: fifty one primes down to five, because we forget that
Speaker 6: at the dawn of World War Two, we didn't have
Speaker 6: a defense industrial base.
Speaker 2: We had an.
Speaker 6: American industrial base. Chrysler made missiles, General mills, this Serial
Speaker 6: company made inertial guidance systems. And so we have this
Speaker 6: moment right now in defense tech where one hundred billion
Speaker 6: dollars or more of capital has been deployed, a bolust
Speaker 6: of founders have shown up. There's a lot of creativity,
Speaker 6: a lot of energy as a company that that's kind
Speaker 6: of been pathfinding over twenty years. Not only have we
Speaker 6: developed our software that gives these warfighters unique advantage like
Speaker 6: the Maven contract a CDO just recently awarded for nearly
Speaker 6: half a billion dollars, but really this software infrastructure that's
Speaker 6: required to deliver modern American software to the battlefield in
Speaker 6: air gapped environments at speed, at pace, well ahead of
Speaker 6: the threats of twenty twenty seven. So we've been working
Speaker 6: very closely with both traditional primes, integrating our software to
Speaker 6: their hardware, helping them actually with production. If you think
Speaker 6: about the fifty percent of our business that's commercial oriented.
Speaker 6: How do we build jet engines and satellites faster, better, cheaper?
Speaker 6: In addition to the new entrants who need to achieve
Speaker 6: scale and time. Value of money is everything for them.
Speaker 2: Whenever we have an executive on this program, I always
Speaker 2: got to tell audience and say, you know, what is
Speaker 2: that you want to know from? In this case Palenteer,
Speaker 2: I would say most of the questions were about warp speed,
Speaker 2: very basic ones. Why now with warp speed and the
Speaker 2: obstacles to rolling it out making it sort of more
Speaker 2: readily available, pervasive out their shop.
Speaker 7: Yeah, that's great.
Speaker 6: I'm so excited about warp speed is what I'm spending
Speaker 6: all of my time on and really shaping the R
Speaker 6: and D roadmap around warp speed is our modern American
Speaker 6: operating system for manufacturing and the reason why now you know,
Speaker 6: for the better part of twenty years we have helped
Speaker 6: traditional manufacturers build planes, trains, automobiles, and ships. But most
Speaker 6: of those folks are stuck in a legacy mode of
Speaker 6: how they're operating, and you're able to help here or there.
Speaker 6: But what's unique about the reindustrialization movement that's happening right
Speaker 6: now in America is that these founders, they're alumni of Palenter,
Speaker 6: of Tesla, of SpaceX, and they understand that the traditional
Speaker 6: erp plm PLC software doesn't really work. That most of
Speaker 6: these successful companies have to build their own software and
Speaker 6: that is really an unaffordable journey.
Speaker 7: So that there's this massive opportunity to take.
Speaker 6: The power of AIP and the historical experiences we have
Speaker 6: throughout the value chain of production to help our customers
Speaker 6: bend their atoms better with bits.
Speaker 4: SEUP.
Speaker 2: I have your CTO. I kind of have some quick
Speaker 2: fire questions that I've never been able to answer about
Speaker 2: Palenteer in the first instance, AIP and warp speed over
Speaker 2: the year. What's the kind of key foundational model LM
Speaker 2: that you've been building on top of. I know you
Speaker 2: partner as well as sort of think in house about
Speaker 2: the model or foundation level, but that's a question that
Speaker 2: comes up quite a lot. Who are you building on
Speaker 2: top of and working with?
Speaker 6: Well, I think all the value is really going to
Speaker 6: create up the application layer, and what we've seen in
Speaker 6: production is that you actually need a menagerie of models
Speaker 6: and you you know, if you think about the most
Speaker 6: expensive frontier model out there right now, it's a thousand
Speaker 6: times more expensive than the cheapest open source model for
Speaker 6: ten percent more ELO, we're ten percent more IQ as
Speaker 6: a rough proxy, that's not a compelling price performance trade off.
Speaker 6: You already see that the first versions of GPT four
Speaker 6: have been sunset. You know, we need to think about
Speaker 6: this problem as Okay, what is the infrastructure I need
Speaker 6: to make I'm turning my software into something that is
Speaker 6: now stochastic.
Speaker 7: It's not deterministic anymore.
Speaker 6: Pure scientists that we have trained, they are all used
Speaker 6: to writing deterministic code.
Speaker 2: You know.
Speaker 6: This is this harkens more to how we think about
Speaker 6: the transition from analog circuits to digital circuits. The sort
Speaker 6: of error correction you need, the sort of infrastructure you
Speaker 6: need to think about having so that you can have
Speaker 6: the abstraction to.
Speaker 7: Think about these things as being digital. That's where I.
Speaker 6: Think the coluy is going to be go ahead, sorry,
Speaker 6: And so we're very focused on helping our customers get
Speaker 6: the right models for the right use cases. Auto evaluate
Speaker 6: that auto automatically generate iterations on the prompts that get
Speaker 6: them there. And part of our theory is that really
Speaker 6: prompts our for developers, chat is a dead end. We're
Speaker 6: guiding our customers through this journey here. They get there
Speaker 6: pretty quickly to realize that we should be thinking of
Speaker 6: l is a new type of runtime, the way I
Speaker 6: might write a Python function.
Speaker 7: Well, okay, I'm going to write an LBM function too.
Speaker 2: Sean. For the commercial half of the business, is there
Speaker 2: a specific Hyperscale cloud platform or partner that you work
Speaker 2: with to support its growth.
Speaker 7: We're working with all of them.
Speaker 6: We have deep and very valuable relationships there, so we're
Speaker 6: very happy with that.
Speaker 2: This last year has been about AIP and growth. What's
Speaker 2: the next twelve months like for Palenteer sham Well, I.
Speaker 6: Think it's really about deepening the investments that we have
Speaker 6: with AIP that are addressing this bottleneck between prototyping and production.
Speaker 6: You know, if you look at David Kahn at Sequoia's
Speaker 6: article on the six hundred billion dollar whole in revenue.
Speaker 7: I think this is where the whole is.
Speaker 6: This is the bottleneck in the market is the most
Speaker 6: important problem to solve, and the folks who solve at first,
Speaker 6: and I think we're in the poor position there, have
Speaker 6: the opportunity to take the entire market.
Speaker 2: Sham sangk Has, CTO of Paleteer. It's great to have
Speaker 2: you back on Bloomberg Technology. Thank you so much. In
Speaker 2: other tech news, Google lost in a historic anti trust
Speaker 2: suit after the tech giant had paid twenty six billion
Speaker 2: dollars to become the default search engine on smartphone web browsers.
Speaker 2: I want to bring in bloombos Lea Nyland, who's been
Speaker 2: reporting with the team on this case. Let's start with
Speaker 2: the basics the decision and how it will impact Alphabet
Speaker 2: or Google Alphabet, the parent of Google.
Speaker 8: Yeah, so the decision that came out yesterday is actually
Speaker 8: just the one on whether Google violated the law. So
Speaker 8: the judge found that Google has an illegal monopoly over
Speaker 8: two markets, the general search services market, which is what
Speaker 8: consumers used to find things on the web, and search
Speaker 8: text ads, which are the ones that are at the
Speaker 8: top of the page that sort of try and luy
Speaker 8: you to websites. And so this was just as I
Speaker 8: said on the liability. Now we're going to go to
Speaker 8: sort of the next phase of the case, which is
Speaker 8: where we're going to talk about what to do about this,
Speaker 8: And the Justice Department hasn't necessarily said what they want yet,
Speaker 8: But there's sort of several options that people think, one
Speaker 8: of which is a potential breakup. So they could ask
Speaker 8: for the court to make Google sell off the Chrome
Speaker 8: browser or the Android operating system, both of which were
Speaker 8: key things in the trial. Or the judge could go
Speaker 8: with maybe like a slightly lesser penalty or remedy, which
Speaker 8: such as making Google share some of the data that
Speaker 8: it collects that sort of underlies all of its search
Speaker 8: results with other search engines like Being or search startups.
Speaker 2: You kind of answered what happens next, but a lot
Speaker 2: of questions I got on social media was does the
Speaker 2: ruling have teeth? If you see what I mean? You know,
Speaker 2: there are some opinion pieces out there about this being
Speaker 2: kind of a hollow victory for regulators and the stocks
Speaker 2: kind of flat. It's hard to gauge how serious this
Speaker 2: is is guess what I'm saying about alphabet, But it
Speaker 2: is important, right.
Speaker 8: Yeah, It's probably not going to take any impact immediately.
Speaker 8: Google has said it's going to appeal. Those sorts of
Speaker 8: appeals generally take a year to eighteen months, so of
Speaker 8: course this is going to delay any actual changes to
Speaker 8: Google's search engine or its business. But what the decision
Speaker 8: means is that long term, like Google is definitely going
Speaker 8: to have to change its practices. It's not going to
Speaker 8: remain the sort of dominant search engine for very long,
Speaker 8: and it may end up having to hive office. I said,
Speaker 8: certain parts of its business which have provided you know,
Speaker 8: a nice cushion to the company.
Speaker 2: The one thing that you did.
Speaker 8: See sort of yesterday was there was a pretty sharp
Speaker 8: stock seller for Apple because twenty billion dollars of that
Speaker 8: twenty six billion dollars that you mentioned had been going
Speaker 8: to Apple every year. It simply, you know, had this
Speaker 8: contract with Google. It got twenty billion dollars pretty much
Speaker 8: for not doing anything except letting them be the default
Speaker 8: on the iPhone. And this ruling definitely puts that in
Speaker 8: danger because the judge said, you can't have this exclusive
Speaker 8: agreement like that when you're this dominant, You have to
Speaker 8: let other people compete. So it might end up changing
Speaker 8: some aspects of the iPhone. There are a lot of
Speaker 8: questions about you know, right now, Apple is creating very
Speaker 8: similar agreements with Google and open Ai over AI chatbats
Speaker 8: and such that could be on the iPhone. Will it
Speaker 8: have to make some changes to those agreements because of
Speaker 8: this decision.
Speaker 2: That's possible, and we reiterate lear that. Of course, Google
Speaker 2: has said it plans to appeal the decision anyway. Bloomberg's
Speaker 2: near Nyland. Thank you, It's official. Vice President Kamala Harris
Speaker 2: tapped Minnesota Governor Tim Waltz as her running mate this
Speaker 2: in an effort to build an electoral coalition of coastal
Speaker 2: progressives and Midwest moderates to block Donald Trump from returning
Speaker 2: to the White House. Let's get out to DC and
Speaker 2: bloombost kdie lines. I have to be honest, I didn't
Speaker 2: know as much about Tim Waltz before this morning, or
Speaker 2: indeed the work done in the state of Minnesota. But
Speaker 2: that's the logic we've just outlined for the appointment. What
Speaker 2: else do we know?
Speaker 9: Yeah, and it is worth noting that he probably doesn't
Speaker 9: have the same name recognition as others we understood to
Speaker 9: be on the shortlist for vice presidential contention. Nonetheless, he
Speaker 9: is a very popular governor in his state of Minnesota,
Speaker 9: so he's someone with executive experience. He also served twelve
Speaker 9: years in the House of Representatives. Before that, he was
Speaker 9: a high school teacher a coach. He served in the
Speaker 9: US military and he's from rural Nebraska. So while he
Speaker 9: doesn't actually represent a swing state, Minnesota has been safely
Speaker 9: blue since nineteen seventy two, when it went for Richard Nixon,
Speaker 9: the last time it went for a Republican. He does
Speaker 9: have proximity and therefore perhaps accessibility to those rest belt
Speaker 9: voters in Michigan, Wisconsin, and Pennsylvania, the states that make
Speaker 9: up that critical blue wall. This is also someone that
Speaker 9: we know has been favored by labor. The UAW President
Speaker 9: Sean Fain has spoken highly of him. The AFLCIO just
Speaker 9: endorsed him today. In the aftermath of Harris's announcement, he
Speaker 9: was well known and liked among gen Z young people.
Speaker 9: He of course has gone quite viral on social media
Speaker 9: in recent weeks, being the first one to coin jd
Speaker 9: Vance and Donald Trump the Republican ticket as being weird,
Speaker 9: something the Harris campaign has seized on. And of course,
Speaker 9: he also has enjoyed democratic control of the state legislator
Speaker 9: legislature in Minnesota in his second term as governor, which
Speaker 9: has allowed him to enact a more progressive agenda, codifying
Speaker 9: abortion rights, paid family leave, lunches for young children in schools,
Speaker 9: that kind of thing that has won him a lot
Speaker 9: of praise with the left. I would just note that
Speaker 9: as the exact reason why you're already receiving Republicans out
Speaker 9: criticizing him today, the Trump campaign casting him as dangerously
Speaker 9: liberal and a radical leftist.
Speaker 2: Today, I would note that some of the reaction I
Speaker 2: saw on social media was exactly the reaction to the
Speaker 2: weird memes that circulated after he gave that interview, particularly
Speaker 2: among the bench, capital and tech community, which we'll get
Speaker 2: to in a second. This played out on social media
Speaker 2: in part the official confirmation, But I believe that you know,
Speaker 2: we're likely to hear from Vice President Harris and I
Speaker 2: guess some more about her rationale. Could you just walk
Speaker 2: our audience through, now that the tickets established, what happens next?
Speaker 9: Yeah, well, of course Harris has confirmed this on her
Speaker 9: campaign X account. We do expect there will be some
Speaker 9: kind of video that rolls out also on social media
Speaker 9: at some point today, and then she will be appearing
Speaker 9: alongside Governor Walls at a rally in Philadelphia this evening
Speaker 9: that is going to kick off a multi swing state
Speaker 9: tour that the two will embark on over the next
Speaker 9: five days. They're going to be, for example, in Detroit
Speaker 9: tomorrow rallying with the United Auto Workers in part, and
Speaker 9: so they'll be visiting a number of these battlegrounds straights.
Speaker 9: Of course, we were told not to read into the
Speaker 9: fact that their event today is in Philadelphia, at the
Speaker 9: hometown of Pennsylvania Governor Josh Shapiro, who was not in
Speaker 9: fact selected, So perhaps not reading into that was the
Speaker 9: right thing to do. We of course have heard from
Speaker 9: Governor Shapiro today saying that he intends to work to
Speaker 9: get Harris support in Pennsylvania and defeat Donald Trump. But
Speaker 9: it also plays into this notion, the idea that he
Speaker 9: was not selected. You're seeing some Republicans, including the vice
Speaker 9: presidential nominee on the Republican ticket, Jade Vans, casting the
Speaker 9: decision not to choose Shapiro as anti Semitic, given that
Speaker 9: he is a Jewish Man and had been more pro
Speaker 9: Israel and had received a lot of backlash among progressives
Speaker 9: for his handling of pro Palestinian protests earlier this year,
Speaker 9: So that the idea that labor didn't like him as
Speaker 9: much may have played a role in Harris's decision not
Speaker 9: to choose Shapiro. So I'm not sure if we will
Speaker 9: see him on stage alongside Harris and Walls tonight, but
Speaker 9: that is the next time and the first time really
Speaker 9: you will see this ticket together in person, now that
Speaker 9: the announcement has been made, with of course, less than
Speaker 9: two weeks to go until the Democratic National Convention.
Speaker 2: In Chicago, Bloomberg's Kaylee Lynes, thank you very much. I
Speaker 2: want to bring in Shruti Shah who's a partner at
Speaker 2: Symphonic Capital and one of the signatories of VC's for Kamala,
Speaker 2: a list of more than two hundred bench catalysts that
Speaker 2: have publicly backed Kamala Harris and her White House bid,
Speaker 2: and Shruti shar joins us from Durham in the swing
Speaker 2: state of North Carolina. Let's just start with the ticket.
Speaker 2: Your reaction to Vice President Harris selecting Governor Waltz's as
Speaker 2: her running.
Speaker 10: Mate, Yeah, well, thanks for having me, ed, and I
Speaker 10: am excited that we finally have a vice presidential choice
Speaker 10: on the ticket. I think Governor wals is an excellent
Speaker 10: choice for Vice President Harris, and I'm excited to see
Speaker 10: what the two of them are going to be able
Speaker 10: to do together. I think as far as it as
Speaker 10: far as it relates to tech. We're still learning more
Speaker 10: about Vice President about Governor Waltz's policies with regard to tech,
Speaker 10: but I think that he's done a lot in the
Speaker 10: state of Minnesota. Just Minnesota has been declared a tech
Speaker 10: hub by the Biden Harris administration. In addition to that,
Speaker 10: he's also done a lot to expand rural broadband access.
Speaker 2: Truty the week that followed the assassination attempts on former
Speaker 2: President Trump and then the selection of J. D Vance
Speaker 2: is his running mate, we had many bench catalysts on
Speaker 2: this program, and though from let's call it Silicon Valley
Speaker 2: more broadly, who came out in support. They basically said,
Speaker 2: we see jd Vance as being a good voice for
Speaker 2: entrepreneurs and somebody with experience in our industry. Are you
Speaker 2: able to make the same arguments for the Harris Waltz
Speaker 2: ticket at this stage? How do you think they will
Speaker 2: approach your world directly?
Speaker 10: Yeah, I think it's a great question, and I just
Speaker 10: want to start by saying that I don't think many
Speaker 10: of the mentor capitalists who came out in support of
Speaker 10: Trump are representative of the entire industry as we know.
Speaker 10: Kamala Harris is from Silicon Valley. She grew up in Oakland,
Speaker 10: and she's been a longtime supporter of the tech industry,
Speaker 10: and she shares a lot of values that many of
Speaker 10: us in the tech industry have, particularly with regard to
Speaker 10: immigration and ensuring that we are continuing to drive innovation
Speaker 10: in this country with policies that are favorable to tech.
Speaker 7: I really believe.
Speaker 10: Strongly that we should be thinking more broadly about the
Speaker 10: ways in which the tech industry has more diverse viewpoints
Speaker 10: than the ones that I think some very vocal members
Speaker 10: of the industry espouse.
Speaker 2: True, So we're showing some of the leading names, I
Speaker 2: suppose so are signatories to the VCS for Kamala. What
Speaker 2: is the one biggest factor that unites you in your
Speaker 2: support of Harris or I guess the opposite, The biggest
Speaker 2: factor that makes you concerned about a Trump presidency.
Speaker 10: I mean, I think one of the biggest things that
Speaker 10: worries me about a Trump presidency is just Trump's past
Speaker 10: history with immigration policy. Is if you look at the
Speaker 10: number of unicorns in this country that have been started
Speaker 10: by immigrants, I believe it's around half of all of
Speaker 10: the unicorns in the United States have been started by
Speaker 10: immigrant founders. About eighty percent of them have immigrants and
Speaker 10: leadership roles. The H one B policy VISA policy is
Speaker 10: really critical for the tech industry, and Trump does not
Speaker 10: have a positive track record there. So I think having
Speaker 10: a president who understands the importance of immigration in this
Speaker 10: country is really critical.
Speaker 2: Truty Sharp, partner at Symphonic Capital, thank you for joining
Speaker 2: us here on Bloomberg Technology again one of the signatories
Speaker 2: to VCS for Kumala. Now coming up on the show,
Speaker 2: we're going to take a look at open Ai as
Speaker 2: the company's co founder Greg Brockman and John Shulman take
Speaker 2: a step back from their roles, marking a shift in
Speaker 2: company management. An important story coming up next this is
Speaker 2: Bloomberg Technology. Open Ai is undergoing a shift another one
Speaker 2: as both co founders step back from leading the company.
Speaker 2: Greg Brockman, who's president of open Ai, is going on
Speaker 2: sabbatical until the end of the year, while John Shulman
Speaker 2: is leaving the company to join rive Away, I start
Speaker 2: up anthropic. I want to ran Bloomberg's Rachel Metz. This
Speaker 2: was big news yesterday evening. I think the important starting
Speaker 2: point is Greg Brockman is important. Rachel he's going on
Speaker 2: a leave of absence, sort of define what we know
Speaker 2: about that.
Speaker 11: Yeah, so we know that he informed the company that
Speaker 11: he's going to be taking off until the end of
Speaker 11: the year. He's been at the company from the very beginning.
Speaker 11: In fact, I've been told by people that the very
Speaker 11: earliest days of open Ai were happening at his apartment.
Speaker 11: So he's definitely been an integral piece of the Company's
Speaker 11: one of the top people there, someone that Sam Maltman,
Speaker 11: the CEO, often looks to. So it's going to be
Speaker 11: interesting to see what happens while he's out.
Speaker 2: We're showing a post that he did on X kind
Speaker 2: of confirming the details of it, and he looks like
Speaker 2: he needs to break Shulman is a name I'm less
Speaker 2: familiar with. What was he doing at open ai, And
Speaker 2: I guess how significant is it that he's jumping over
Speaker 2: to Anthropic of all places that I would say that's
Speaker 2: a pretty big deal.
Speaker 11: A couple people make that kind of move recently from
Speaker 11: open Ai, But yeah, John Shulman also someone who's been
Speaker 11: there from the very beginning. With him gone and with
Speaker 11: Greg on leave, that means there, to my account, is
Speaker 11: like two people from the original twenty fifteen blog posts
Speaker 11: saying welcome, this is opening Eye here all of our
Speaker 11: founding members. We have Sam Altman, we have watched Arember.
Speaker 11: I believe those are the two people that are remaining
Speaker 11: there in addition to these guys. So it's going to
Speaker 11: be interesting to see what happens going forward.
Speaker 2: So, I mean the information reported in the first instance
Speaker 2: that Greg Brockman was leaving, then I think we've got
Speaker 2: some clarification that it's it's a leave of absence or
Speaker 2: a sabbatical. But the point being in aggregate people track
Speaker 2: open AI. There's been a lot of change. It seems
Speaker 2: a very long time ago that Sam Altman was briefly ousted,
Speaker 2: So so summarize it all looked for the audience. You know,
Speaker 2: where do they stand now versus that fate for weekend
Speaker 2: of November twenty three.
Speaker 11: Yeah, it seems so long ago, but also not so.
Speaker 11: A lot of leadership has changed and left, and a
Speaker 11: lot of things have been reorganized there, especially in the
Speaker 11: safety portion of the company. Sam obviously is back from
Speaker 11: that time in November. Ilia Saskiverer, who helped organize the
Speaker 11: coup to remove Sam in the first place, and then
Speaker 11: recanted has left the company.
Speaker 2: Jan Niki, who.
Speaker 11: Had worked on super alignment at the company, is gone.
Speaker 11: And we also have a bunch of other people in
Speaker 11: leadership positions, such as John Shulman, that have left. And
Speaker 11: now we also have as as we said, Greg Brockman
Speaker 11: has is stepping stepping back.
Speaker 2: I mean to be fair, he's.
Speaker 11: Been there for a long time. He's done a lot
Speaker 11: of work, so maybe he just wants a break.
Speaker 2: For a lot of people that that's not so important important,
Speaker 2: particularly if you're you're in the world of engineering. You
Speaker 2: want to say, what's open AI shipping right now? What
Speaker 2: is the latest thing for them on the product side?
Speaker 11: Well, that's that'sten an excellent question. Actually, So they have
Speaker 11: thank you the very you're welcome. They have all the
Speaker 11: models that are in Chat, GPT and including GPT four
Speaker 11: ROH which was released in the past couple months. But
Speaker 11: the most recent thing is voice Mode, which is in alpha,
Speaker 11: which means it's been released to a very limited number
Speaker 11: of people. The company has not said how many people,
Speaker 11: but it's not that many people from what I can tell,
Speaker 11: and they're slowly going to be releasing it to more
Speaker 11: people in the coming weeks and months through the fall.
Speaker 2: I actually asked them if I could get my hands
Speaker 2: on it, so to speak, let's see what happens. Bloomberg's
Speaker 2: Rachel Metz thank you an important piece of reporting. That
Speaker 2: does it for this edition of Bloomberg Technology. We're two
Speaker 2: days into a week that has felt like an entire week.
Speaker 2: Recap everything on the podcast. You know exactly where to
Speaker 2: find it, all the Bloomberg platforms, including the Bloomberg Terminal, Apple, Spotify, iHeart,
Speaker 2: and elsewhere. From San Francisco, just me this week. This
Speaker 2: is Bloomberg Technology,