WEBVTT - Inflation Cools Down and Databricks' AI Plan 0:00:01.400 --> 0:00:05.080 From Marhard where Innovation of Money and Power Collie in 0:00:05.200 --> 0:00:06.720 Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:25.280 --> 0:00:27.720 I'm Caroline Heide of Bloomberg's World headquarters in New York 0:00:28.080 --> 0:00:29.800 and I Mad Lovelow in San Francisco. 0:00:29.960 --> 0:00:31.400 This is Bloomberg Technology. 0:00:31.480 --> 0:00:31.880 Coming up. 0:00:31.920 --> 0:00:36.080 We'll talk the state of the digital consumer as inflation shoes. 0:00:35.720 --> 0:00:38.519 Some signs of moderation, with a founder of course, joining us. 0:00:38.680 --> 0:00:43.519 CEO of Mickmac, a global e commerce analytics platform. 0:00:42.720 --> 0:00:45.279 Plass will sit down for an exclusive conversation with the 0:00:45.320 --> 0:00:48.800 CEO of Data Breaks, one of the fastest growing software companies, 0:00:48.960 --> 0:00:52.720 to discuss how they're utilizing AI to power their business. 0:00:52.600 --> 0:00:54.880 And sticking with AI, we break down the earning some 0:00:55.000 --> 0:00:58.520 oracle as the AI frenzy spurs cloud demand. Plus we 0:00:58.560 --> 0:01:02.560 look at how salesforce so focusing in on artificial intelligence. 0:01:02.720 --> 0:01:05.120 But first let's focus in on these markets because we 0:01:05.200 --> 0:01:08.040 have some calling some signs of calling in inflation. If 0:01:08.040 --> 0:01:10.319 you look at not the core CPI, but look at 0:01:10.360 --> 0:01:13.080 the main overall print, we're back at four percent low 0:01:13.080 --> 0:01:15.120 as that we've had since March twenty twenty one. So 0:01:15.160 --> 0:01:17.520 we are seeing some optimism the FED will holds and 0:01:17.640 --> 0:01:19.840 stand steady for the month of June. We're seeing Na's 0:01:19.880 --> 0:01:22.160 that cup about five tens percent, benefiting from that risk 0:01:22.200 --> 0:01:25.800 on feel. But look, this inflationary pressure is being felt elsewhere. 0:01:25.840 --> 0:01:28.040 We think about the UK at the moment, yields absolutely 0:01:28.080 --> 0:01:30.160 spiking and I want to show what asset is still 0:01:30.200 --> 0:01:32.959 trading there, the pound versus the US dollar, higher versus 0:01:33.080 --> 0:01:35.400 US dollars. We think the FED might pause, but all 0:01:35.400 --> 0:01:37.800 eyes on maybe even a six percent level when you're 0:01:37.800 --> 0:01:39.959 thinking of central bank policy over at the Bank of England. 0:01:40.200 --> 0:01:42.400 Interesting of course, moves coming from China. They're going to 0:01:42.400 --> 0:01:45.760 the opposite direction. Instead of curtailing inflation, they're looking to 0:01:45.840 --> 0:01:48.000 speed up their economy. They're cutting rates that were surprise 0:01:48.080 --> 0:01:50.760 overnight that really boid some of the commodities markets. We're 0:01:50.760 --> 0:01:52.880 seeing up more than three percent in oil. But moving 0:01:52.920 --> 0:01:54.960 on to one of our favorite more risk assets in 0:01:54.960 --> 0:01:56.680 the world of technology, let's look at what's happening in 0:01:56.720 --> 0:02:00.280 the world of crypto. Look, not dramatic moves, but ill 0:02:00.320 --> 0:02:04.640 pressure remaining on bitcoin. We're atwred and seventy seven right now. 0:02:04.880 --> 0:02:07.720 This is even with a weaker dollar ed so clearly 0:02:07.960 --> 0:02:10.760 some of this regulatory our anxiety is still pressuring the 0:02:10.840 --> 0:02:12.440 main crypto asset ed. 0:02:13.240 --> 0:02:16.240 Yeah, when it comes to individual movers, that CPI print 0:02:16.280 --> 0:02:19.919 and the idea around the FED is having some impact here. 0:02:19.919 --> 0:02:21.760 But there's one name I'm looking at, which is Tesla, 0:02:21.840 --> 0:02:25.600 up for a thirteenth consecutive session, longest streak of gains 0:02:26.000 --> 0:02:28.440 on record trading at a September high. One of the 0:02:28.520 --> 0:02:30.760 kind of news events of the last twenty four hours 0:02:30.960 --> 0:02:34.520 was all those charging names coming out all at once, 0:02:34.600 --> 0:02:37.040 basically Yessay afternoon saying yep, you know what, we're going 0:02:37.080 --> 0:02:41.200 to adopt the NCACS standard, kind of pivoting to profressure 0:02:41.480 --> 0:02:43.920 and momentum in that space. A few stories that we're 0:02:43.919 --> 0:02:46.200 going to cover throughout the show playing out in equity markets. 0:02:46.200 --> 0:02:48.359 When it comes to movers as well, you mentioned Oracle 0:02:48.760 --> 0:02:51.680 and Salesforce. Oracle moving to the upside one point three percent. 0:02:51.760 --> 0:02:54.640 AI is driving cloud momentum. We'll get deep into those 0:02:54.720 --> 0:02:58.400 numbers with bion this Anna Ragrana, but interesting AI story 0:02:58.400 --> 0:03:00.799 with Salesforce as well, it's moving to the downside one 0:03:00.800 --> 0:03:02.920 and a half percent. They had this event where they 0:03:03.040 --> 0:03:05.680 kind of explained in real terms how their work in 0:03:05.720 --> 0:03:08.960 AI is going to better their existing suite of products. 0:03:09.080 --> 0:03:12.760 Remember there was also a referendum essentially on Mark Benioff's 0:03:12.760 --> 0:03:15.920 popularity with investors, which we can talk about. We're about 0:03:16.000 --> 0:03:19.160 to go to Miami to Florida and talk about Trump. 0:03:19.360 --> 0:03:22.760 So I just note this stock rumble. The conservative or 0:03:22.840 --> 0:03:26.040 right leaning social platform down four and a half percent. 0:03:26.280 --> 0:03:29.160 With the president in focus, and what's happening in court? 0:03:29.400 --> 0:03:32.000 Yeah, former President Donald Trump is in focus. Let's go 0:03:32.040 --> 0:03:34.600 straight there, just for an update really on what's happening. 0:03:34.600 --> 0:03:37.400 We're expecting the appearance in the Miami court today after 0:03:37.440 --> 0:03:41.320 being indicted on thirty seven counts of allegedly mishandling classified documents. 0:03:41.440 --> 0:03:44.040 As of course, after leaving the White House, Bloomberg's Kaylee 0:03:44.080 --> 0:03:47.520 Lines is outside the courthouse. And when are we anticipating 0:03:47.520 --> 0:03:48.520 in arrival Kayley. 0:03:51.360 --> 0:03:53.320 Well, three pm Eastern time is when he is due 0:03:53.360 --> 0:03:55.640 to report here at the Federal Courthouse. We may not 0:03:55.720 --> 0:03:58.760 actually see him arrive, though, it's expected that he will 0:03:59.000 --> 0:04:01.960 enter the Fort House via the underground garage, but once 0:04:02.000 --> 0:04:04.920 inside he will be arrested and processed just like anyone 0:04:04.960 --> 0:04:08.120 else who has been indicted on federal criminal charges. Its 0:04:08.200 --> 0:04:11.440 potential that he could have his fingerprint and mugshot taken. 0:04:11.480 --> 0:04:14.120 He may even need to surrender his passport. Then he 0:04:14.160 --> 0:04:16.120 will go up to the thirteenth floor of this building 0:04:16.120 --> 0:04:18.159 behind me a pear before a judge and is expected 0:04:18.200 --> 0:04:20.920 to plead not guilty. Of course this this indictment came 0:04:21.000 --> 0:04:24.120 down last week. The president has maintained that he is innocent, 0:04:24.600 --> 0:04:27.160 said that this is a witch hunt, election interference at 0:04:27.200 --> 0:04:29.159 the highest level, and that is likely the kind of 0:04:29.160 --> 0:04:31.680 messaging he is likely to take with him from Miami 0:04:31.880 --> 0:04:34.479 back up to Bedminster, New Jersey this evening, where he 0:04:34.520 --> 0:04:36.760 will be speaking at his golf club at eight fifteen 0:04:36.800 --> 0:04:40.360 pm Eastern Time, addressing his supporters, supporters and holding a 0:04:40.480 --> 0:04:43.760 donor event. His campaign expects that he could raise two 0:04:43.880 --> 0:04:46.280 million dollars at that event tonight, which is taking place 0:04:46.440 --> 0:04:49.480 just hours after he will become the first former president 0:04:49.520 --> 0:04:52.720 in history ever to be arranged on federal criminal charges. 0:04:53.920 --> 0:04:57.120 Kaylee, local police, one of which has just walked past 0:04:57.200 --> 0:05:01.880 you in that shot, and authorities preparing for some demonstration 0:05:02.240 --> 0:05:04.280 right what's the scene like on the ground right now 0:05:04.279 --> 0:05:07.880 where you are? Well? 0:05:07.920 --> 0:05:10.520 The police chief ahead of today has sent from five 0:05:10.560 --> 0:05:14.000 thousand up to as many as fifty thousand demonstrators could 0:05:14.000 --> 0:05:15.560 be here today and as a result, there is a 0:05:15.560 --> 0:05:17.920 pretty heavy security presence. There is a lot of police, 0:05:17.960 --> 0:05:20.520 There are perimeters set up all around, and there have 0:05:20.640 --> 0:05:23.440 been I would say several dozen of both pro Trump 0:05:23.440 --> 0:05:26.560 and anti Trump demonstrators here today. There is a lot 0:05:26.839 --> 0:05:30.000 of Trump flags, people wearing Make America Great Again gear, 0:05:30.279 --> 0:05:33.039 a couple that have T shirts on that indicate Trump 0:05:33.080 --> 0:05:35.000 is not guilty, that Trump won the election, but there 0:05:35.040 --> 0:05:38.040 are some anti Trump people as well, holding up signs 0:05:38.120 --> 0:05:41.039 like lock him Up. So far, though, it does seem peaceful. 0:05:41.120 --> 0:05:43.279 President Trump, of course, had called for his supporters to 0:05:43.320 --> 0:05:45.960 show up and peacefully protest. It doesn't seem like there 0:05:46.000 --> 0:05:48.760 is too much disruptive activity that is taking place here 0:05:48.800 --> 0:05:50.119 today at this point. 0:05:50.320 --> 0:05:52.520 All right, Bloombergs Katie Lines will be bringing us the 0:05:52.560 --> 0:05:55.360 latest throughout the day from Miami, Florida. But just gave 0:05:55.440 --> 0:05:58.440 us the latest here on Bloomberg Technology. Thank you so much. 0:05:58.480 --> 0:06:00.720 Now elsewhere in the world of eco head line CPI 0:06:00.839 --> 0:06:04.520 numbers inflation easing to the lowest levels since March with 0:06:04.600 --> 0:06:06.919 twenty twenty one. Let's get to the view from the 0:06:06.920 --> 0:06:10.120 founder of mickmac a global e commerce enablement and an 0:06:10.200 --> 0:06:14.240 analytics platform for multichannel brands showing us now Rachel Tippograph, 0:06:14.279 --> 0:06:18.479 who is the MICKMAC founder and CEO, at the street 0:06:18.560 --> 0:06:21.520 level or the online level, what does that inflation print 0:06:21.600 --> 0:06:23.880 tell you about the direction of travel right now? 0:06:23.960 --> 0:06:24.279 Rachel? 0:06:25.640 --> 0:06:29.400 Yeah, And you know, with the results just coming out, 0:06:29.640 --> 0:06:33.480 it's really interesting to think about why we're saying inflation 0:06:33.640 --> 0:06:37.600 might be going down. If we look at food and 0:06:38.120 --> 0:06:42.720 consumer good categories like appliances, those have been relatively flat. 0:06:43.279 --> 0:06:46.560 But when we remove that from the equation, inflation is 0:06:46.920 --> 0:06:50.479 still going up. And the reason why we're seeing categories 0:06:50.560 --> 0:06:54.000 like food and appliances stay relatively flat is that for 0:06:54.040 --> 0:06:58.039 the last few quarters, brand manufacturers have been raising praises, 0:06:58.680 --> 0:07:01.279 and the reason why they've been reached prices is that 0:07:01.320 --> 0:07:05.080 it's more extensive than ever before to bring consumer goods 0:07:05.120 --> 0:07:07.599 to market, to keep them on the shelf, and to 0:07:07.720 --> 0:07:11.240 market them to consumers. To offset those margins, they've been 0:07:11.320 --> 0:07:15.080 raising prices, which is why at NCKMAC we feel core 0:07:15.120 --> 0:07:18.600 inflation is more indicative of what's happening in the general economy, 0:07:19.120 --> 0:07:21.720 and when we look at that inflation continuing to go 0:07:21.880 --> 0:07:25.920 up against e commerce conversion rates. What we're seeing at 0:07:26.000 --> 0:07:30.520 Mickmac is that year over year e commerce conversion rates 0:07:30.520 --> 0:07:33.480 have been declining since twenty twenty And to put it 0:07:33.480 --> 0:07:37.040 into context, in twenty twenty one, the average e comm 0:07:37.120 --> 0:07:40.560 conversion rate we saw at Mickmac was seven point four percent. 0:07:41.120 --> 0:07:44.520 We're now halfway through twenty twenty three and the average 0:07:44.640 --> 0:07:47.520 e comm conversion rate is at four point eight percent. 0:07:48.120 --> 0:07:51.680 So it's showing that consumers are more trepidacious to buying 0:07:51.920 --> 0:07:52.320 right now. 0:07:52.680 --> 0:07:55.800 Yeah, what does that mean in terms of companies trepidation 0:07:55.960 --> 0:08:00.200 about marketing? An interesting headline just across the Brimberg is 0:08:00.200 --> 0:08:02.080 going to open a pop up restaurant of Parery call 0:08:02.160 --> 0:08:04.960 Netflix bytes in La. I mean, of course that's a 0:08:05.000 --> 0:08:09.240 marketing focus. It's itself a company that's taking in advertising, 0:08:09.440 --> 0:08:12.160 in fact dolos from other companies. Now, how willing and 0:08:12.320 --> 0:08:16.040 able are companies to experiment in this environment if the 0:08:16.080 --> 0:08:17.480 conversion rates up pretty low? 0:08:18.760 --> 0:08:19.080 Yeah? 0:08:19.280 --> 0:08:22.320 I think for most big brands and brands that understand 0:08:22.320 --> 0:08:25.360 what it takes to stand the test of time, you 0:08:25.520 --> 0:08:29.600 have to advertise during trying economic times. Look in Procter Gamble, 0:08:29.840 --> 0:08:33.559 they've proven that over one hundred years that being said, 0:08:33.840 --> 0:08:37.840 every dollar is being scrutinized right now by folks that 0:08:37.920 --> 0:08:41.520 hold the title like CFO, and they're holding the marketing 0:08:41.559 --> 0:08:46.080 teams accountable to driving business results, which has created a 0:08:46.200 --> 0:08:50.840 perfect tailwind for the rise of retail media. Meaning meta's 0:08:50.840 --> 0:08:56.320 biggest competitor isn't just Snap or TikTok, it's also Amazon, 0:08:56.360 --> 0:08:59.960 Target Walmart. And what the retailers have at their advantage 0:09:00.720 --> 0:09:03.959 is consumer purchase data and their ability to monetize that 0:09:04.080 --> 0:09:07.240 data and say, hey, we know who needs to replenish 0:09:07.280 --> 0:09:09.719 diapers right now, So if you have one dollar to 0:09:09.760 --> 0:09:12.079 spend to market diapers, you should give it to us 0:09:12.640 --> 0:09:15.600 over a platform that may not know that. So from 0:09:15.640 --> 0:09:19.480 a marketing standpoint, we're continuing to see brands spend, but 0:09:19.559 --> 0:09:23.760 they're spending in more strategic channels that have more visibility 0:09:24.000 --> 0:09:27.600 into the end sales data so they can understand marketing effectiveness. 0:09:28.520 --> 0:09:30.960 Rachel, we're showing on the screen, you know, the difference 0:09:31.080 --> 0:09:34.920 in direction of travel between goods and services inflation, and 0:09:34.960 --> 0:09:38.839 you learn in a recessionary and in inflation re environment that. 0:09:40.280 --> 0:09:41.320 Who is leading who. 0:09:41.840 --> 0:09:44.040 You know that there's a response to the consumer and 0:09:44.080 --> 0:09:47.679 their change in behavior, but there's also the reaction from 0:09:47.679 --> 0:09:50.000 the retailers themselves based on what you see. 0:09:49.800 --> 0:09:51.400 In the market. 0:09:51.600 --> 0:09:54.520 Who moves more quickly, you know, the consumer to change 0:09:54.600 --> 0:09:59.120 habits or the online retailer to respond to them. 0:09:59.280 --> 0:10:01.679 Yeah, it's it's a given a take per your point. 0:10:02.400 --> 0:10:05.120 But right now, what we're seeing into in terms of 0:10:05.160 --> 0:10:08.880 how consumers are spending is they're really spending on essentials. 0:10:09.120 --> 0:10:11.760 At Nickmac, we have over three thousand retailers in the 0:10:11.800 --> 0:10:15.320 network and we collect basket level sales data, and so 0:10:15.400 --> 0:10:19.000 we can tell you right now what America's buying bottled water, 0:10:19.520 --> 0:10:24.880 granola bars, teeth whitening kits, press on nails, and weed killers. 0:10:25.400 --> 0:10:28.560 And what that shows you is, hey, these are essential items. 0:10:28.600 --> 0:10:31.200 But when it comes to things like beauty, for example, 0:10:31.520 --> 0:10:33.680 you could go to the salon to get your nails done, 0:10:34.200 --> 0:10:36.800 or you could buy on press on nails at Walmart. 0:10:37.400 --> 0:10:41.040 And so in some of these discretionary categories, we are 0:10:41.160 --> 0:10:44.240 seeing consumers be more choosy with the things that they're 0:10:44.240 --> 0:10:47.520 willing to do on their own versus go to a 0:10:47.520 --> 0:10:49.120 more service oriented place. 0:10:49.360 --> 0:10:52.400 A boy, if I served one more press on nail 0:10:52.679 --> 0:10:56.800 kit Instagram marketing, I'm going to explode, so clearly that's 0:10:56.840 --> 0:10:59.880 the place this is right now, mus you got them 0:10:59.880 --> 0:11:02.000 all on Rachel Pohograph. Thank you so much spending some 0:11:02.040 --> 0:11:04.920 time with us. I think mac founder and CEO really interesting. 0:11:04.920 --> 0:11:07.800 Their weekkiller sexy stuff. Meanwhile, coming up and we're going 0:11:07.840 --> 0:11:10.000 to be sitting down for an exclusive conversation this year 0:11:10.000 --> 0:11:13.679 of Data Bricks as they acquire Rubicon to stealth infrastructure startup. 0:11:13.880 --> 0:11:16.959 It's focusing on storage systems that's key for AI. So 0:11:17.040 --> 0:11:19.040 that's the CEO. Meanwhile, watching shares of Apple. 0:11:19.160 --> 0:11:22.120 The company's stock is been downgraded to neutral from buy 0:11:22.240 --> 0:11:23.599 by UBS, which. 0:11:23.760 --> 0:11:25.840 The analysts is citing soft demand. 0:11:25.480 --> 0:11:28.040 Outlook for the iPhone and in particular for services growth 0:11:28.040 --> 0:11:30.280 as well. And it's notable that this downgrade is pushing 0:11:30.240 --> 0:11:33.640 bullish analysts ratings on the stock to a two year 0:11:33.720 --> 0:11:37.120 low of three ten percent. Remember it was a record 0:11:37.200 --> 0:11:37.679 high yesterday. 0:11:37.720 --> 0:11:38.360 This's Atlmberg. 0:11:48.840 --> 0:11:52.520 Data Bricks is announcing it's acquired Rubicon, a stealth infrastructure 0:11:52.559 --> 0:11:56.480 startup focusing on storage systems for AI. Data Bricks is 0:11:56.559 --> 0:11:59.719 used by more than nine thousand organizations worldwide who rely 0:11:59.800 --> 0:12:02.640 on the companies lake House platform to unify their data, 0:12:02.679 --> 0:12:06.520 analytics and AI. The startup also hit key milestones for 0:12:06.559 --> 0:12:09.520 revenue and top line growth. Joining us now Data Brick 0:12:09.600 --> 0:12:12.880 CEO Ali Godzi a lot to go over. 0:12:12.960 --> 0:12:13.720 I'm learning a lot. 0:12:13.640 --> 0:12:16.840 About data breaks this morning. Let's start with the top line. 0:12:17.360 --> 0:12:19.960 You've just closed out a financial year at the end 0:12:20.000 --> 0:12:23.679 of jen hit a billion dollars of revenue, which is 0:12:23.720 --> 0:12:27.640 a milestone. But the growth is really interesting. That makes 0:12:27.679 --> 0:12:30.480 you one of the fastest growing software names out there. 0:12:30.960 --> 0:12:31.880 What's driving it? 0:12:32.800 --> 0:12:33.880 Yeah, it's really tailwinds. 0:12:33.880 --> 0:12:37.520 By the way, it's the fastest growing software if according 0:12:37.520 --> 0:12:40.040 to our records. But what is driving it is really 0:12:40.280 --> 0:12:44.240 we're seeing tailwinds. One around AI. Everyone wants AI now one. 0:12:44.280 --> 0:12:46.320 We've been saying it for ten years that data innai 0:12:46.480 --> 0:12:48.440 is going to be the future, that in every industry 0:12:48.480 --> 0:12:50.839 the winners are going to be data ANAI companies. But 0:12:51.000 --> 0:12:53.800 something happened in November last year and everyone kind of 0:12:53.800 --> 0:12:56.240 realized after chat GPT that this is the future. And 0:12:56.280 --> 0:12:59.080 the second thing is tcoor reduction. People want to cut 0:12:59.120 --> 0:13:02.439 down their costs of data spend and our Lakehouse platform 0:13:02.480 --> 0:13:02.840 helps that. 0:13:04.800 --> 0:13:10.600 Data warehousing SQL is the product. You also sharing some 0:13:10.679 --> 0:13:13.720 financials on that particular product. So I remember when you 0:13:13.720 --> 0:13:16.839 announced it, you know, it's a domain you compete with 0:13:16.920 --> 0:13:20.720 snowflake in. What's driving this growth? Is this a market 0:13:20.760 --> 0:13:21.719 share gain for you? 0:13:22.200 --> 0:13:24.760 Yeah, So we've announced that we now passed one hundred 0:13:24.800 --> 0:13:27.880 million ARR on our data warehousing product that we just 0:13:28.000 --> 0:13:31.280 frankly launched just a year ago. So what's going on 0:13:31.360 --> 0:13:35.200 here is that this Lakehouse paradigm helps organizations cut down 0:13:35.240 --> 0:13:39.360 their cost of data warehousing significantly. And you know, there's 0:13:39.400 --> 0:13:40.959 a tale of two cities. On the one hand side, 0:13:40.960 --> 0:13:42.760 everybody wants AI and they want to spend on AI. 0:13:42.880 --> 0:13:45.640 On the other hand, everyone wants to reduce their cost 0:13:45.800 --> 0:13:48.440 and they want to reduce the spend on data warehousing. 0:13:48.480 --> 0:13:52.160 So it's really that cost tco optimization that's driving that 0:13:52.240 --> 0:13:53.360 tail went behind data. 0:13:53.160 --> 0:13:58.320 Warehousing spent caroline from organic growth to inorganic growth. Ali, 0:13:58.400 --> 0:14:00.000 godseeing data breaks who have been outshot. 0:14:00.320 --> 0:14:03.079 Yeah, I'm interested in that deal, Rubicon. This is all 0:14:03.120 --> 0:14:06.680 about storage systems. You say, it's the backbone of AI. Ali, 0:14:06.760 --> 0:14:09.040 did you have to pay up? I mean, this isn't 0:14:09.080 --> 0:14:11.280 a cheap time to be trying to buy a company 0:14:11.320 --> 0:14:12.160 related to AI. 0:14:12.280 --> 0:14:12.680 Right now? 0:14:13.720 --> 0:14:15.400 Yeah, right now, you have to pay up. That's just 0:14:15.440 --> 0:14:17.840 as simple as it is. And everyone that's doing anything 0:14:17.840 --> 0:14:20.680 with AI. And this was a team that can build 0:14:20.800 --> 0:14:24.520 storage for all kinds of unstructured data. This is the 0:14:24.560 --> 0:14:26.120 oil that fuels AI. 0:14:26.840 --> 0:14:28.640 You know, those are not cheap right now. And this 0:14:28.760 --> 0:14:30.040 is the team that. 0:14:30.080 --> 0:14:32.280 Actually has built it previously at drop. 0:14:32.160 --> 0:14:34.400 Box and before that at Google. 0:14:34.760 --> 0:14:36.200 So this is a team that really knows how to 0:14:36.200 --> 0:14:38.720 build this kind of sort of data systems for AI. 0:14:39.520 --> 0:14:42.840 You know, Sergay and team are really really experienced. So 0:14:42.880 --> 0:14:44.920 we're excited to have them as part of Data Bricks. 0:14:45.360 --> 0:14:48.080 Of course, you, as you said, for the last decade, 0:14:48.120 --> 0:14:50.360 have been telling people the future is data, it's AI. 0:14:50.520 --> 0:14:54.480 Your own well experience two decades in this particular field 0:14:54.520 --> 0:14:56.400 and in particular with deep routes not only in R 0:14:56.480 --> 0:14:59.720 research ALI, but also in open source software, and I'm 0:15:00.040 --> 0:15:02.880 interested in your take and just sort of theoretically at 0:15:02.880 --> 0:15:07.800 the moment, as everyone Warren debates as to whether open AI, 0:15:08.160 --> 0:15:10.440 Microsoft Google going to eat the entire lunch when it 0:15:10.440 --> 0:15:12.640 comes to large language models when it comes to application, 0:15:12.880 --> 0:15:15.160 and whether the open source is actually already showing that 0:15:15.160 --> 0:15:16.120 they aren't any modes. 0:15:16.680 --> 0:15:18.680 Where do you stand on this divide? 0:15:19.640 --> 0:15:21.040 Yeah, I would say two things. I would say. On 0:15:21.120 --> 0:15:23.000 the one hand, We absolutely. 0:15:22.640 --> 0:15:27.640 Want open source to flourish because as AI becomes more 0:15:27.640 --> 0:15:29.760 and more powerful, we want the researchers around the world 0:15:29.760 --> 0:15:32.200 to understand this technology. We don't want just one or 0:15:32.240 --> 0:15:34.040 two companies to sit on top of this and there 0:15:34.040 --> 0:15:35.760 are only ones that know if. 0:15:35.680 --> 0:15:36.880 It's going wrong or right. 0:15:37.320 --> 0:15:41.080 We want researchers the whole world to understand the models. 0:15:41.120 --> 0:15:43.360 What can go around well, you know, how do we 0:15:43.440 --> 0:15:46.000 align them with US US one. The second thing is 0:15:46.320 --> 0:15:48.720 I actually think it's impossible for one or two companies 0:15:48.760 --> 0:15:51.760 to keep up with the competition. Every university on the planet, 0:15:51.760 --> 0:15:54.320 every researcher now in the data field, in the tech field, 0:15:54.360 --> 0:15:56.560 is focused on llm's generative AI. 0:15:56.800 --> 0:15:58.360 I've never seen anything like it before. 0:15:58.520 --> 0:16:00.400 So it's going to be very hard for one company 0:16:00.400 --> 0:16:03.040 to keep a proprietary model that they say is ahead 0:16:03.040 --> 0:16:05.640 of everybody else, and it's ahead of open source. So 0:16:05.920 --> 0:16:08.240 and we've seen this every day we're having new results 0:16:08.240 --> 0:16:10.280 in open source. You know, I follow it very closely. 0:16:10.440 --> 0:16:13.120 It's no longer months, it's no longer weeks, it's every day, 0:16:13.480 --> 0:16:16.080 multiple times a day, there's a new breakthrough result. So 0:16:16.120 --> 0:16:18.239 I think it's going to be very hard for proprietary 0:16:18.640 --> 0:16:21.560 closed companies to say, ahead, what is. 0:16:21.520 --> 0:16:25.280 The Alley Gods view on when and why data breaks 0:16:25.280 --> 0:16:26.040 would go public? 0:16:26.520 --> 0:16:27.960 And I just want to caveat that. 0:16:28.040 --> 0:16:30.040 You know, there's reports that you kind of trim the 0:16:30.120 --> 0:16:34.400 valuation on the company. Didn't slash the trimmed, but what 0:16:34.440 --> 0:16:35.480 would push you to do that? 0:16:36.280 --> 0:16:39.680 Yeah, So look, I've always said that IPO is something 0:16:39.680 --> 0:16:41.880 we will do in the future for us. We think 0:16:41.880 --> 0:16:44.200 that we're going to be a really successful, sustainable business 0:16:44.240 --> 0:16:47.000 in the long run, in you know, next decade or so. 0:16:47.000 --> 0:16:49.200 So this is just a milestone right now. The markets 0:16:49.240 --> 0:16:52.600 are shut down, We're not over optimizing for this IPO event. 0:16:53.720 --> 0:16:56.200 We'll get there, you know, whenever the time is right. 0:16:56.920 --> 0:16:59.320 There's just so much demand for our business right now. 0:16:59.600 --> 0:17:01.560 And Frank, we want to be able to invest in AI. 0:17:02.000 --> 0:17:03.680 We want to be able to do the investment set 0:17:03.960 --> 0:17:06.080 we're allowed to do us private companies. It would be 0:17:06.080 --> 0:17:07.760 actually hard to do that as a public company. So 0:17:07.800 --> 0:17:09.960 actually right now it's really helping us to stay for 0:17:10.080 --> 0:17:11.600 private data. 0:17:11.359 --> 0:17:14.560 Brix CEO, Annie Gods there, We thank you for bringing 0:17:14.640 --> 0:17:16.679 us the update on some of the revenue numbers and 0:17:16.720 --> 0:17:17.359 the acquisition. 0:17:25.680 --> 0:17:26.400 Time Now for. 0:17:26.400 --> 0:17:29.120 Talking tech Kathy Wood is making new bets on other 0:17:29.160 --> 0:17:32.080 tech stocks after of course, dropping in video from her funds. Largely, 0:17:32.400 --> 0:17:34.840 two Ark invest funds purchased roughly one hundred and seventy 0:17:34.840 --> 0:17:38.080 five thousand shares Meta, while the Ark Autonomous Technology and 0:17:38.160 --> 0:17:40.920 Robotic etf IT picked up more than ninety eight thousand 0:17:41.000 --> 0:17:46.360 shares the chip maker TSMC. Meanwhile, TSMC also regaining it's 0:17:46.359 --> 0:17:49.399 five hundred billion dollar market cap as investors buy into 0:17:49.520 --> 0:17:52.600 artificial intelligence and looks sift through which stock's the best 0:17:52.600 --> 0:17:55.639 place to thrive during this AI boom. While TSMC toilted 0:17:55.680 --> 0:17:58.600 its potential role within AI, has expressed some caution over 0:17:58.600 --> 0:18:01.240 the outlook for the smartphone market, in particular that of course, 0:18:01.280 --> 0:18:04.760 comprises a significant chunk of its revenue so far. And 0:18:04.840 --> 0:18:08.280 let's look at arm So software back chip designer. It's 0:18:08.320 --> 0:18:11.640 in talks with potential investors, including Intel, to be an 0:18:11.680 --> 0:18:14.679 anchor in its New York listing later this year. Sources 0:18:14.680 --> 0:18:16.440 are saying that the company has held talks with other 0:18:16.480 --> 0:18:19.200 firms about funding. The IPO was expected to be one 0:18:19.240 --> 0:18:21.360 of the most significant IPOs of the year. 0:18:21.520 --> 0:18:27.720 Ed Yeah, let's chip away all this story further Bloomberg 0:18:27.720 --> 0:18:31.520 Deals reporter Katie Ruth joining us from Los Angeles. An 0:18:31.560 --> 0:18:34.240 anchor investor, you and I have been across many IPOs 0:18:34.680 --> 0:18:36.760 in years. An anchor investor gives you a bit of 0:18:36.800 --> 0:18:39.040 confidence appear in your industry. 0:18:39.280 --> 0:18:44.080 That's very interesting, Yeah, exactly, And investors like this SoftBank 0:18:44.160 --> 0:18:47.600 stock traded up on the news. Yes, a lot of 0:18:47.600 --> 0:18:50.639 times you'll see an anchor investor of about one hundred 0:18:50.680 --> 0:18:54.320 to two hundred million in size to help shore up confidence. 0:18:55.119 --> 0:18:58.080 You know, it's a vote of confidence, a bit you know, 0:18:58.119 --> 0:19:01.359 from a competitor and also a partner that shows that 0:19:02.000 --> 0:19:05.040 they're serious and excited about arms technology. 0:19:05.520 --> 0:19:08.480 I mean they have a relationship already a technical one. 0:19:08.520 --> 0:19:10.440 The fact that it would become a financial one, I 0:19:10.520 --> 0:19:12.280 mean remind us of in the past when this has 0:19:12.320 --> 0:19:13.720 happened because sort. 0:19:13.560 --> 0:19:16.120 Of Qualcomm is underpin previous listings as well. 0:19:17.560 --> 0:19:20.520 Yeah, yeah, it's happened with Qualcom and then Mobile I. 0:19:20.680 --> 0:19:24.119 There have been other anchor investors in the past. Mobile 0:19:24.119 --> 0:19:27.800 I was spun out from Intel last year, and so 0:19:28.040 --> 0:19:30.480 not just in this category, but in general. It's something 0:19:30.520 --> 0:19:34.520 that you sometimes see with IPOs ahead of the roadshow, 0:19:34.880 --> 0:19:39.320 ahead of drumming up interest from institutional investors to have 0:19:39.440 --> 0:19:42.560 this strategic anchor investor to shore up confidence. 0:19:43.760 --> 0:19:47.160 So Katie, you are the name on the Deals newsletter 0:19:47.680 --> 0:19:50.640 publishing this morning. A big focus on all the talk 0:19:50.680 --> 0:19:54.200 out in LA and LA Tech Week and Karen and I, 0:19:54.240 --> 0:19:56.680 you know, we look at each of these tech Weeks LA, 0:19:56.840 --> 0:19:59.879 New York, San Francisco. Sometimes a lot comes out of it, 0:20:00.080 --> 0:20:04.879 sometimes very little does. What did you learn on the ground, Well. 0:20:04.720 --> 0:20:05.440 I had fun? 0:20:06.000 --> 0:20:07.000 What what did I learn? 0:20:07.560 --> 0:20:12.679 I chatted with Mantis, the Chainsmokers, the band. They have 0:20:13.280 --> 0:20:18.640 a venture fund and they they threw events uh uh 0:20:18.720 --> 0:20:21.439