WEBVTT - Cathie Wood Talks DeepSeek and Artificial Intelligence 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Well, let's get back to the transit lanting tech route

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<v Speaker 2>that we saw yesterday, one trillion dollars worth of course

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<v Speaker 2>over Deep seeks dark horse entry to the AI race.

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<v Speaker 2>The question is it a turning point for the industry

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<v Speaker 2>and its investors. Joining us now to discuss is one

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<v Speaker 2>of the most prominent voices in this sphere. Kathy would

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<v Speaker 2>found at CEO and CIO of ARC invest. Lovely to

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<v Speaker 2>have you with us, Kathy, Thank you, Lucy, happy with

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<v Speaker 2>you here. Big question you buying the dip.

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<v Speaker 3>Well, we're fully invested, and we're very comfortable being fully invested.

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<v Speaker 3>I think our confident in the ballmarket broadening out has

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<v Speaker 3>increased in the last few days. So sure the megacaps

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<v Speaker 3>we think will continue to do well. Maybe in Vidia

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<v Speaker 3>there are some questions about its exalted position in the

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<v Speaker 3>training chip market. We think inference is going to become

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<v Speaker 3>more important with these new reasoning models, and that is

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<v Speaker 3>a more competitive part of the market. But we think

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<v Speaker 3>that what's happening here is the collapse in the cost

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<v Speaker 3>of innovation.

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<v Speaker 4>Deep Seek is adding to it.

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<v Speaker 3>It has been happening though AI training costs have been dropping,

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<v Speaker 3>led by Nvidia seventy five percent per year, and AI

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<v Speaker 3>inference costs have been dropping eighty five to ninety percent

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<v Speaker 3>per year. Deep seek is just putting those very rapid

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<v Speaker 3>declines into a bit of overdrive here.

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<v Speaker 1>So I wonder, if you see in Vidia falling much further,

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<v Speaker 1>is this an attractive price to be buying it?

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<v Speaker 3>Do you think, well, we we own it in some

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<v Speaker 3>of our portfolios.

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<v Speaker 4>We are not buying the dip yet.

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<v Speaker 3>We do want to learn more about deep seek and

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<v Speaker 3>more about how the market or the demands and for

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<v Speaker 3>inference chips might outpace those for training chips.

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<v Speaker 4>We think the whole area is going to be vibrant.

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<v Speaker 3>We just think there might be a little bit more

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<v Speaker 3>of an adjustment to this new reality.

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<v Speaker 2>Where you say that what deep seat shows is kind

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<v Speaker 2>of that you can do more with less kap X.

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<v Speaker 2>Who do you think that's going to motivate in the

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<v Speaker 2>US most as Donald Trump is kind of saying, who's

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<v Speaker 2>going to be best at doing more with less?

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<v Speaker 4>Well, anyone using AI.

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<v Speaker 3>We are focused on the productivity gains for knowledge workers,

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<v Speaker 3>which are going to be massive. That's the biggest impact

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<v Speaker 3>of AI. But if we're looking at sectors and spaces

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<v Speaker 3>generally where this acceleration and innovation is going to be meaningful.

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<v Speaker 3>We think autonomous mobility, so robotaxis. We think that's going

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<v Speaker 3>to scale from essentially nothing now to an eight to

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<v Speaker 3>ten trillion dollar globe opportunity, including China. But the sleeper

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<v Speaker 3>here is healthcare, and we're seeing the convergence of sequencing technologies,

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<v Speaker 3>all kinds of sequencing technologies, artificial intelligence, and then gene

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<v Speaker 3>editing technologies like Crisper CAST nine. That combination we believe

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<v Speaker 3>is going to cure disease. It's already curing disease, sickle

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<v Speaker 3>cell disease and beta thllosemia. That's Chrisper therapeutics. But we

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<v Speaker 3>think they're aiming now for type one and type two diabetes.

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<v Speaker 3>That would be a category killer, you know, So think

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<v Speaker 3>about that curing disease, AI helping us decode the secrets

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<v Speaker 3>of life, death health.

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<v Speaker 1>Those are two areas where regulation plays a big part.

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<v Speaker 1>You've spoken about your optimism about deregulation under Donald Trump.

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<v Speaker 1>Do you think those are two areas we should expect

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<v Speaker 1>to see big deregulation about what technology can get in.

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<v Speaker 4>Yes.

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<v Speaker 3>I think in both safety first and I think anyone

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<v Speaker 3>moving into this market or these markets would agree with that,

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<v Speaker 3>so sensible regulation. But in the US, the robotaxi field

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<v Speaker 3>is regulated by fifty states. We think that will change

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<v Speaker 3>to one regulator, the federal government. After all, transportation does

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<v Speaker 3>cross states, so that makes sense. In the healthcare realm,

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<v Speaker 3>that is where the thicket of regulations has really strangled

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<v Speaker 3>the industry. And even more than the outright regulations, it

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<v Speaker 3>was the FTC, the Federal Trade Commission not allowing mergers

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<v Speaker 3>and acquisitions and therefore not allowing strategic buyers big biotech companies,

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<v Speaker 3>not allowing them to the smaller companies, so that we

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<v Speaker 3>had price discovery. Now we're going to see price discovery.

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<v Speaker 3>How much are these companies that are curing disease worth

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<v Speaker 3>to these large strategic buyers now and saying that I

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<v Speaker 3>don't necessarily want our companies to be taken out. We

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<v Speaker 3>think they have miles to go, but we do want

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<v Speaker 3>price discovery back in the market.

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<v Speaker 2>Where you talk about your excitement about autonomous vehicles. Of course,

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<v Speaker 2>your biggest holding is Tesla, I think, and we've call

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<v Speaker 2>Elon Musk's first earnings call tomorrow since Trump's returned to

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<v Speaker 2>the White house January. Typically a call that's a look ahead.

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<v Speaker 2>What do you need to hear from muskue.

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<v Speaker 3>We need to hear a continuation of we're about to

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<v Speaker 3>launch our autonomous driving system. I mean, in effect, they've

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<v Speaker 3>launched it. I have a full self driving I know

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<v Speaker 3>it's not allowed here in the UK or in Europe, but.

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<v Speaker 1>You feel safe.

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<v Speaker 3>But oh yes, yes, yes, yes, Weymo really has broken

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<v Speaker 3>through a lot of barriers. I feel even though a

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<v Speaker 3>Waymo vehicle is not safer than a human driven vehicle,

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<v Speaker 3>it knows its roads. It's narrow roads, meaning there are

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<v Speaker 3>narrow territories. I think Tesla is going to go national.

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<v Speaker 3>That's going to be and we'll be able to do

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<v Speaker 3>so because it has effectively seven million robots roaming the roads.

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<v Speaker 3>Right now, I have two of them, a Y and

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<v Speaker 3>A three, and they're learning all about Connecticut and Florida

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<v Speaker 3>worlds roads. So it has a huge competitive advantage in

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<v Speaker 3>terms of proprietary data that nobody else has about the roads,

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<v Speaker 3>not only in the US, but in many places around

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<v Speaker 3>the world.

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<v Speaker 1>Do you worry that Elon Musk is taking on too much?

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<v Speaker 1>If he's got his new job in the US government,

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<v Speaker 1>he's got you know, sharp developments coming in Tesla, lots

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<v Speaker 1>going on with those other businesses as well. Is he

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<v Speaker 1>spreading himself too thin?

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<v Speaker 3>If you look at the way Elon Musk behaves as

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<v Speaker 3>a CEO, he's a sharpshooter. He looks for pain points

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<v Speaker 3>and he solves those right. And he's for example, right now,

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<v Speaker 3>where was in twenty eighteen, where was the biggest pain point?

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<v Speaker 3>It was manufacturing the Model three, scaling the Model three.

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<v Speaker 3>He slept famously on the factory floor. He's not doing

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<v Speaker 3>that anymore. He's not on the factory floor now. It's

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<v Speaker 3>all about autonomous. He is the first what we would

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<v Speaker 3>call CEO who really understands the convergence among technologies taking

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<v Speaker 3>place right now, really catalyzed by artificial intelligence each one

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<v Speaker 3>of his businesses. And he also understands how critically important

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<v Speaker 3>proprietary data is. And think about this, Each of those

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<v Speaker 3>companies is generating proprietary data that no one else has.

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<v Speaker 2>Well, maybe you should out to his plate. Should he

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<v Speaker 2>buy us TikTok ah?

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<v Speaker 4>Yes?

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<v Speaker 3>I mean, I know there have been rumors about that

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<v Speaker 3>and about the government sharing half, and that's kind of

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<v Speaker 3>anathema to the United States, you know, the government getting.

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<v Speaker 4>Involved like this. I'd be surprised if that happens.

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<v Speaker 3>But I will also say the Trump administration is full

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<v Speaker 3>of surprises.

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<v Speaker 1>It certainly is, and we're only a weekend to it.

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<v Speaker 1>You're here with us in London and we're delighted to

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<v Speaker 1>see you. What has you in London? What opportunities are

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<v Speaker 1>you excited about when you come to the UK. Is

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<v Speaker 1>this a good place to put your money?

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<v Speaker 3>Well, we have launched three funds. Our Europe has launched

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<v Speaker 3>three funds here. One is our flagship that is focused

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<v Speaker 3>on all five innovation platforms, so robotics, energy storage, artificial intelligence,

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<v Speaker 3>multiomic sequencing and blockchain technology. So that's the flagship AARKK

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<v Speaker 3>a special one for Europe which we do not have

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<v Speaker 3>in the US because of overlaps with other funds, But

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<v Speaker 3>we have an AI and robotics fund and that is ARKI.

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<v Speaker 3>We think this convergence of robotics and AI is going

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<v Speaker 3>to lead to humanoid robots and you know, not just

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<v Speaker 3>millions of them, but perhaps billions of them longer term,

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<v Speaker 3>which is going to be a key productivity driver in

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<v Speaker 3>both the home. You know, right now we're not paid

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<v Speaker 3>for house cleaning let's get a robot. Let's pay a

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<v Speaker 3>robot to do it, and in the manufacturing plants around

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<v Speaker 3>the world.

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<v Speaker 1>Kathy, the Prime Minister was in the building earlier. Kara Starmer,

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<v Speaker 1>you're exactly the sort of person that he wants to

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<v Speaker 1>meet because he wants investments going into those sorts of

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<v Speaker 1>businesses in this country. Have you spoken to what sort

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<v Speaker 1>of advice would you be giving him if he's trying

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<v Speaker 1>to grow the economy.

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<v Speaker 3>Well, half the solution is understanding the problem. And just

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<v Speaker 3>making that statement suggests to me that he's saying, why

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<v Speaker 3>hasn't this happened? And I also over the weekend heard

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<v Speaker 3>one of the finance ministers or maybe the Finance Minister

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<v Speaker 3>say the same thing. This is a mantra, and I

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<v Speaker 3>think it has been catalyzed by artificial intelligence as well.

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<v Speaker 3>If you think about the UK, you produced two of

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<v Speaker 3>the most important AI companies in the world, Deep Mind,

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<v Speaker 3>which Alphabet now owns, an arm which SoftBank primarily owns.

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<v Speaker 3>By all rights, you should be developing a deep venture

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<v Speaker 3>capital pool here, feeding startups and nourishing them and deepening

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<v Speaker 3>your listed equity markets. And so I think that's what

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<v Speaker 3>they're going to do, which is fantastic, fantastic for the UK.

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<v Speaker 2>Absolutely, they talk very ambitiously the UK leadership, but so

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<v Speaker 2>too do the European government's leadership. And Donald Trump, as

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<v Speaker 2>you say, is very passionate about deregulation. So yes, everybody's

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<v Speaker 2>on the same page. But it is a race. Is

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<v Speaker 2>the UK keeping up enough with the EU and the

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<v Speaker 2>US when it comes to deregulation for you to be

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<v Speaker 2>really confident, Kathy putting your money here.

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<v Speaker 3>I think that Europe is more tied up in regulatory

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<v Speaker 3>nuts than the UK is. And in fact, some of

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<v Speaker 3>our companies, Pallenteer has been very vocal, for example, and

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<v Speaker 3>we think that's one of the most important AI platform

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<v Speaker 3>companies out there. Alex Krp, the CEO, has said, I

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<v Speaker 3>am pulling employees out of Europe because you know, we're

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<v Speaker 3>running into all of these obstacles that could really harm us,

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<v Speaker 3>you know, being hit by a four percent fine, four

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<v Speaker 3>percent of revenue or and that's global revenue or seven

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<v Speaker 3>percent of revenue I heard recently.

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<v Speaker 4>That's crazy.

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<v Speaker 3>So I think Europe is going to be held back

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<v Speaker 3>until it gets its regulatory act together. I think the

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<v Speaker 3>UK is more progressive from a regulatory point of view,

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<v Speaker 3>and as I said, I really believe that half the solution.

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<v Speaker 3>The fact that your Prime Minister, your Finance Minister in

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<v Speaker 3>the same week are saying, you know, we've got to

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<v Speaker 3>figure this out. I think that's a very good thing

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<v Speaker 3>for the UK.