WEBVTT - OpenAI and Anthropic at Money 20/20, Apple's Announcements 0:00:01.600 --> 0:00:05.280 From Mahard where Innovation of Money and Power Collie in 0:00:05.400 --> 0:00:10.320 Silicon Valley NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.320 --> 0:00:11.239 and ed Blood Love. 0:00:25.280 --> 0:00:28.400 Now from New York and Las Vegas. This is Bloomberg Technology. 0:00:28.680 --> 0:00:31.640 This hour, we sit down with Open Aiyes, Sarah Frier, 0:00:31.840 --> 0:00:36.200 and anthropics Daniella Amode Nive and the Money twenty twenty conference. 0:00:35.800 --> 0:00:36.640 In Las Vegas. 0:00:37.040 --> 0:00:39.960 Plus a deep dive into how Russia is continuing to 0:00:40.000 --> 0:00:44.080 access powerful in video chips for a Mumbai farmer company, 0:00:44.520 --> 0:00:47.320 and Apple is planning a slew of announcements plus its earnings. 0:00:47.320 --> 0:00:49.960 This week, we push ahead to the Apple Intelligence rollout 0:00:50.200 --> 0:00:52.760 and it's Mac overhaul. But first we check out how 0:00:52.800 --> 0:00:55.400 Apple is helping push us higher on the NASDAC. 0:00:55.480 --> 0:00:57.760 We are at or thereabouts. 0:00:57.280 --> 0:01:00.000 Record highs once again for this particular tech heavy benchmark. 0:01:00.440 --> 0:01:02.840 All eyes on six tens percent higher. All eyes on 0:01:02.840 --> 0:01:04.680 the earnings that come out this week. Let's just dive 0:01:04.720 --> 0:01:07.760 into what we're expecting, because they come thick and fast. Friends, 0:01:07.880 --> 0:01:09.959 We've got the likes of course Reddit coming as soon 0:01:10.000 --> 0:01:12.240 as tomorrow, We're going to have the Juggernauts, that is, 0:01:12.440 --> 0:01:15.400 of course Alphabet AMD on the chip side, we push 0:01:15.440 --> 0:01:20.039 aboard so many more names than metas, the Microsofts, the Amazons, and. 0:01:19.959 --> 0:01:21.040 Of course the Apples. 0:01:21.400 --> 0:01:23.520 But first and foremost, we've got to be getting out 0:01:23.560 --> 0:01:26.759 to Las Vegas, where Ed is sat. 0:01:26.520 --> 0:01:27.680 For a very special guest. 0:01:31.840 --> 0:01:35.280 Welcome to our Bloomberg television and radio audiences around the world. 0:01:35.360 --> 0:01:36.480 We're live in Las Vegas. 0:01:36.520 --> 0:01:39.039 This is Money twenty twenty, and we're joined by open 0:01:39.080 --> 0:01:41.120 AI's CFO Sarah Fryer. 0:01:41.160 --> 0:01:41.880 And this is interesting. 0:01:41.920 --> 0:01:45.280 You have some history with Money twenty twenty, history with fintech, 0:01:45.680 --> 0:01:48.240 but that's kind of the point. And so much of 0:01:48.280 --> 0:01:51.480 the focus to date on open ai has been I guess, 0:01:51.600 --> 0:01:54.520 a personal use of chat GPT, But let's start with 0:01:54.600 --> 0:01:57.960 the banks and finances. How much of that is made 0:01:58.000 --> 0:01:58.840 up in your business? 0:01:58.920 --> 0:02:00.920 Yeah, I'll flank you out. So great to be here, 0:02:00.960 --> 0:02:03.600 and you're right, Money twenty twenty. I've seen it progress 0:02:03.720 --> 0:02:06.400 through the years. What an incredible event it is today, 0:02:06.840 --> 0:02:09.920 and we're here because our customers are here. AI is 0:02:09.960 --> 0:02:13.520 happening right now. It's not experimental. It's not something that 0:02:13.560 --> 0:02:17.960 people are just playing around with, banks, financial institutions, FinTechs. 0:02:18.320 --> 0:02:21.120 People are using it today in their business. 0:02:21.240 --> 0:02:23.560 There's the Morgan Stanley case study. Yeah, you know, this 0:02:23.680 --> 0:02:26.119 week alone or past week, Bank of America's talks about 0:02:26.160 --> 0:02:29.520 how many patents it's got in machine learning and artificial intelligence. 0:02:29.760 --> 0:02:31.560 But do you actually have a tangible sense of what 0:02:31.639 --> 0:02:35.119 it is those financial institutions are doing with your large 0:02:35.160 --> 0:02:35.880 language models. 0:02:36.000 --> 0:02:36.880 Yes, absolutely so. 0:02:36.919 --> 0:02:40.160 Morgan Stanley is a great example in their wealth management business. 0:02:40.200 --> 0:02:43.120 They're using our models both to help wealth advisors be 0:02:43.240 --> 0:02:46.000 more productive. They're using it as a way to create 0:02:46.080 --> 0:02:50.120 better financial advice and outcomes for customers. We're seeing folks 0:02:50.160 --> 0:02:53.520 like Klarna use it in a customer service. CEO of 0:02:53.520 --> 0:02:55.600 Clarina has been very loud and proud on this front. 0:02:55.800 --> 0:02:59.600 That's another great case study in terms of productivity improvements. 0:03:00.000 --> 0:03:02.239 And then we have banks like VBVA that are using 0:03:02.320 --> 0:03:05.359 it all across their business. And that's really our message here. 0:03:05.680 --> 0:03:09.440 It's just get started. Get enterprise chat, GPT, roll that 0:03:09.560 --> 0:03:12.120 to a organization, see what your people do with it. 0:03:12.240 --> 0:03:14.520 Help them just get started, whether they're in marketing, in 0:03:14.680 --> 0:03:18.560 finance and product everyone can have really interesting even. 0:03:18.440 --> 0:03:20.560 If we are just getting started. Can you help our 0:03:20.600 --> 0:03:25.919 audience understand how meaningful contribution the financial services sector fintech 0:03:26.040 --> 0:03:27.440 makes to open AIS revenue. 0:03:27.600 --> 0:03:29.960 Yes, so today if you look at our largest verticals 0:03:30.040 --> 0:03:35.080 areas like edu, education, healthcare, but financials is probably third. 0:03:35.520 --> 0:03:38.640 And again I think that's because they are typically early adopters. 0:03:38.880 --> 0:03:41.360 They're often willing to take that risk because they see 0:03:41.400 --> 0:03:44.120 the upside in terms of driving more revenue. But they 0:03:44.160 --> 0:03:47.120 also are very good at managing their cost and efficiency. 0:03:47.960 --> 0:03:50.080 And it's great when you get an early adopter like 0:03:50.120 --> 0:03:52.760 Morgan Stanley because it tends to lead the way. I 0:03:52.800 --> 0:03:55.360 can think of a wealth management client today that's not 0:03:55.440 --> 0:03:57.600 coming to us to say what do we need to do? 0:03:57.840 --> 0:03:58.840 How do we get started? 0:03:59.360 --> 0:04:02.880 Banks in particular can be sensitive to pricing. There's a 0:04:02.880 --> 0:04:05.480 lot of curiosity not just in sort of as a 0:04:05.520 --> 0:04:08.120 consumer how much I'm paying on a monthly basis for 0:04:08.200 --> 0:04:10.680 chat GPT access. 0:04:10.240 --> 0:04:11.640 But at the enterprise level as well. 0:04:11.760 --> 0:04:14.720 Reports are for example, at the corporate pay user level, 0:04:14.880 --> 0:04:18.040 you're thinking it about two thousand dollars per head? How 0:04:18.080 --> 0:04:21.000 are you managing us give us insight into the pricing strategy? 0:04:21.080 --> 0:04:24.000 Sure, so pricing is super interesting because we're really trying 0:04:24.000 --> 0:04:27.159 to think about value and what is this person getting 0:04:27.200 --> 0:04:29.200 from this tool? And I don't think I actually don't 0:04:29.200 --> 0:04:31.520 think we've done a great job of that yet ourselves. 0:04:31.839 --> 0:04:34.239 Despite that, we have two hundred and fifty million weekly 0:04:34.279 --> 0:04:37.640 active users and of that a you know, five six 0:04:37.680 --> 0:04:41.640 percent actually converted to be plus customers, so they're paying. 0:04:42.360 --> 0:04:44.840 But if you look at the value when we were 0:04:44.920 --> 0:04:47.479 rolling out oh one, our reasoning model, and this is 0:04:47.480 --> 0:04:50.039 a model that stops and thinks for you, it actually 0:04:50.120 --> 0:04:53.280 does hard problems. I was watching a lawyer in action 0:04:53.520 --> 0:04:55.560 using it to create a brief and at the end 0:04:55.600 --> 0:04:57.640 we said to them, what would you have paid for that? 0:04:57.760 --> 0:05:00.359 Like if you had a paralegal doing that thing is 0:05:00.400 --> 0:05:03.320 like easily one thousand to two thousand dollars per hour. 0:05:03.720 --> 0:05:06.200 And this is someone who's using it. If it's an enterprise, 0:05:06.279 --> 0:05:10.760 perceeds probably sixty bucks per month. And this is someone 0:05:10.760 --> 0:05:13.159 who would have paid one thousand to two thousand dollars 0:05:13.160 --> 0:05:15.320 per hour. So I think that there's a lot of 0:05:15.440 --> 0:05:18.640 value that is in the product today, but we are 0:05:18.680 --> 0:05:21.560 just trying to make sure people can get started, can 0:05:21.600 --> 0:05:24.640 actually see the outcomes, and over time we believe that 0:05:24.760 --> 0:05:26.799 value to price will come into alignment. 0:05:26.880 --> 0:05:29.960 There's a balance right between what's of value to your customer. 0:05:29.960 --> 0:05:32.080 But also you know you have to account for open 0:05:32.120 --> 0:05:35.560 AIS spending. So we talked about endlessly, particularly on the 0:05:35.560 --> 0:05:39.160 compute side. What is that balance in what works best 0:05:39.200 --> 0:05:40.960 for you and your customer base? 0:05:41.160 --> 0:05:44.080 Yeah, so it our first and foremost what's most important 0:05:44.080 --> 0:05:46.800 to us is to stay on the frontier, building the 0:05:46.800 --> 0:05:50.600 frontier models, making sure that we are bringing ultimately agi 0:05:50.800 --> 0:05:52.080 to the benefit of humanity. 0:05:52.600 --> 0:05:54.120 To do that, it's expensive. 0:05:54.320 --> 0:05:57.479 We have to invest in large scale compute and so 0:05:57.640 --> 0:05:58.320 to me, there's. 0:05:58.160 --> 0:06:00.440 Really two ways to that. 0:06:00.480 --> 0:06:02.560 It's either through the free cash flows of the business 0:06:02.720 --> 0:06:06.720 spoken like a good CFO, or it's through raising equity 0:06:06.760 --> 0:06:10.080 and debt financing because investors can see the long term 0:06:10.120 --> 0:06:13.120 potential of this business. So on the former, on the 0:06:13.160 --> 0:06:14.800 cash flows of the business, we want to make sure 0:06:14.800 --> 0:06:17.000 we keep growing that business. I think we have been 0:06:17.040 --> 0:06:20.080 wowed at just the pace of growth, particularly on the 0:06:20.080 --> 0:06:22.920 consumer side. It's about seventy five percent of our business today. 0:06:23.120 --> 0:06:25.960 But even our enterprise businesses, they are young, but they 0:06:26.000 --> 0:06:31.440 are already doing an incredible amount of annualized revenue and 0:06:31.560 --> 0:06:33.599 we're real excited by the potential there. 0:06:33.680 --> 0:06:36.720 For all Blueberg television and radio audience worldwide. We're in 0:06:36.800 --> 0:06:39.599 Las Vegas at Money twenty twenty and we're speaking to 0:06:39.600 --> 0:06:42.920 the Open AI CFO Sarah Fryar, and you talk there. 0:06:42.760 --> 0:06:44.000 About the consumer business. 0:06:44.520 --> 0:06:48.640 Something very interesting is the future business model AD supported tiers, 0:06:48.680 --> 0:06:51.839 for example, very specifically segmented pricing. 0:06:52.200 --> 0:06:54.000 How do you think about that, Sarah, Yeah, so I. 0:06:54.000 --> 0:06:56.880 Think you always want to stay open to alternate business 0:06:56.920 --> 0:06:59.600 models or ways that you can layer a new business 0:06:59.600 --> 0:07:02.279 model on top. Now, the key for us is always access. 0:07:02.320 --> 0:07:04.719 How do we make sure as many people as possible 0:07:04.839 --> 0:07:08.560 get access to this tool? And that's on a global stage, 0:07:08.600 --> 0:07:11.240 by the way, And so to do that sometimes you 0:07:11.280 --> 0:07:14.480 do pivot away from just pure subscription models to models 0:07:14.520 --> 0:07:17.600 like ads. My last company was all ads, so I've 0:07:17.640 --> 0:07:20.880 definitely experienced this. I think ads have their place, but 0:07:20.960 --> 0:07:23.480 you have to be really mindful of where. I think 0:07:23.520 --> 0:07:25.840 in areas like commerce, ads are great. Right if I 0:07:25.920 --> 0:07:30.280 do a chat GPT prompt for black high heeled shoes, 0:07:30.320 --> 0:07:33.280 something I probably would do, I actually don't want a 0:07:33.400 --> 0:07:35.880 history of the black high heeled shoe. I want five 0:07:35.920 --> 0:07:38.840 stores I could buy from right now, probably e commerce. 0:07:38.840 --> 0:07:41.560 So that's why companies like Shopify are great customers of 0:07:41.560 --> 0:07:44.680 ours as well. But there are other places where actually 0:07:44.760 --> 0:07:47.280 the AD model doesn't make as much sense. You want 0:07:47.280 --> 0:07:49.880 to get the consumer to the answer they need as 0:07:49.880 --> 0:07:52.640 fast as possible, and I think that's where chat gipt 0:07:52.840 --> 0:07:55.400 is a really very different platform from say something like 0:07:55.440 --> 0:07:56.040 Google Search. 0:07:56.320 --> 0:08:00.280 You are still relatively early in this role, but it's 0:08:00.320 --> 0:08:05.280 been two years since the original deal with Microsoft was negotiated, 0:08:05.320 --> 0:08:09.200 and that compute relationship is critically important. Yes, all those 0:08:09.280 --> 0:08:12.760 terms change, are they fluid or are you just sticking 0:08:12.800 --> 0:08:15.640 to the contract that was on your desk when you arrived. 0:08:15.520 --> 0:08:18.040 Now and it's actually longer than two years. Microsoft and 0:08:18.080 --> 0:08:20.400 open ai have been partners, I think for actually almost 0:08:20.440 --> 0:08:22.840 five years, so they really came to us when we 0:08:22.840 --> 0:08:25.800 were a research lab and the deal that we've worked 0:08:25.800 --> 0:08:29.320 with them is they do provide compute exclusively and we 0:08:29.440 --> 0:08:33.000 give them the IP around artificial intelligence. 0:08:33.040 --> 0:08:33.880 So it's incredible. 0:08:33.920 --> 0:08:36.640 The products they're rolling out today are really built a 0:08:36.760 --> 0:08:40.720 top of open AI's AI. As we go forward and 0:08:40.760 --> 0:08:43.440 as we get bigger, we absolutely see am maturing in 0:08:43.480 --> 0:08:46.760 that relationship, and so for consumer benefit, we want to 0:08:46.760 --> 0:08:49.640 make sure consumers always get access to what they need. 0:08:49.640 --> 0:08:52.360 That will probably mean compute for more parties over time. 0:08:52.800 --> 0:08:55.800 We did discuss the Oracle deal or Oracle discussed it 0:08:55.880 --> 0:08:58.000 a few quarters back, and I think that's a good 0:08:58.080 --> 0:09:01.040 starting point for just how do we maximize compute so 0:09:01.080 --> 0:09:03.400 we maximize the impact for consumers. 0:09:03.880 --> 0:09:07.560 The catchphrase or buzz word of this year, I think 0:09:07.600 --> 0:09:11.080 has been ship products. You're the CFO, and so there's 0:09:11.120 --> 0:09:13.960 a tension between the cost of doing so and the 0:09:14.040 --> 0:09:17.280 need to move quickly. I think Sam has denied recently 0:09:17.360 --> 0:09:20.120 reports that the next model will be out by year end. 0:09:20.440 --> 0:09:22.480 What can you tell us about the path forward their 0:09:22.760 --> 0:09:24.320 the cadence of new models to come. 0:09:24.559 --> 0:09:26.000 Yeah, I mean I think you hit the nail on 0:09:26.040 --> 0:09:28.319 the head ship product product velocity. 0:09:28.760 --> 0:09:29.400 That is the. 0:09:29.840 --> 0:09:33.160 Mantra internally to open Aye. And it's something I've just 0:09:33.200 --> 0:09:35.800 been so wowed by since I started as just how 0:09:35.800 --> 0:09:38.600 fast we do ship products right? Even in my short tenure, 0:09:38.960 --> 0:09:42.040 I've seen oh one come on our reasoning model. That 0:09:42.320 --> 0:09:45.319 huge step forward from kind of what has been more 0:09:45.400 --> 0:09:50.000 the chatchipt model series. We've launched things like advanced speech 0:09:51.040 --> 0:09:52.640 back to the model itself. 0:09:53.360 --> 0:09:54.760 The O series four. 0:09:54.679 --> 0:09:57.839 O enough four Mini for example, four O Mini, which 0:09:57.880 --> 0:10:01.600 is our distilled model, is one one hundreds the cost 0:10:02.200 --> 0:10:05.800 of what the original CHATWPT four model was. That is 0:10:05.840 --> 0:10:08.920 incredible for developers, and that's why you see the API 0:10:09.040 --> 0:10:12.320 products be so successful. And again it goes back to 0:10:12.360 --> 0:10:14.120 how do we get this into the hands of many 0:10:14.559 --> 0:10:17.800 developers are a force multiplier and today I'm super proud. 0:10:17.840 --> 0:10:20.720 I think every single ai unicorn is built a top 0:10:20.800 --> 0:10:23.800 of open AI's API, and that will tell you how 0:10:23.840 --> 0:10:25.240 we are the frontier model. 0:10:25.440 --> 0:10:27.559 I think when I started covering open ai there was 0:10:27.559 --> 0:10:28.960 around five hundred people at the company. 0:10:29.040 --> 0:10:30.640 It's probably near two thousand now. 0:10:30.800 --> 0:10:31.079 Yeah. 0:10:31.320 --> 0:10:33.720 Part of that is the CFO is to keep talent, 0:10:33.800 --> 0:10:37.319 long serving talent happy. My understanding is that tenders will 0:10:37.320 --> 0:10:40.280 be a big part of that, giving employees liquidity. What 0:10:40.320 --> 0:10:42.679 will be the cadence and sort of increments of that 0:10:42.760 --> 0:10:43.280 going forward? 0:10:43.360 --> 0:10:45.400 Sarah, Yeah, So we are a company that has done 0:10:45.480 --> 0:10:47.760 tenders to date, and part of that is because we 0:10:47.840 --> 0:10:50.959 are in a competitive market, particularly for research talent. When 0:10:50.960 --> 0:10:53.640 I think about what keeps you on that front edge 0:10:53.679 --> 0:10:56.720 of the best models out there, it is compute, but 0:10:56.960 --> 0:10:58.240 more importantly. 0:10:57.760 --> 0:10:59.880 It's people. It's great researchers. 0:11:00.360 --> 0:11:02.720 And so in order to compete with companies that have 0:11:02.840 --> 0:11:06.040 liquidity already in their stock public companies, we have taken 0:11:06.040 --> 0:11:08.120 this approach to tenders a little bit like others in 0:11:08.160 --> 0:11:08.520 the space. 0:11:08.559 --> 0:11:11.400 SpaceX is a great bax one we've covered closer, yes. 0:11:11.400 --> 0:11:13.920 And so we want to be able to keep doing that. 0:11:14.520 --> 0:11:16.760 We want to do it thoughtfully and mindfully, knowing that 0:11:16.920 --> 0:11:19.000 the other rule one is to keep it on the field, 0:11:19.360 --> 0:11:21.319 make sure we have money for compute. So it's always 0:11:21.360 --> 0:11:23.600 a balance, but we do think it's important to give 0:11:23.640 --> 0:11:25.480 our researchers that access for. 0:11:25.480 --> 0:11:28.400 A Bloomberg television and radio audience all around the globe. 0:11:28.520 --> 0:11:30.440 We're in Las Vegas and we're speaking to the open 0:11:30.480 --> 0:11:35.480 Ai CFO Sarah Fryar. Open Ai is a software company, 0:11:35.679 --> 0:11:38.480 or it was now a lot of the focuses on 0:11:38.640 --> 0:11:43.439 Sam and the team's ambitions with safeguarding infrastructure. How involved 0:11:43.480 --> 0:11:47.679 are you in that talking about the sort of construction 0:11:47.760 --> 0:11:50.840 of five gig data centers and the financing of such things. 0:11:51.000 --> 0:11:51.240 Yeah. 0:11:51.400 --> 0:11:54.000 Was that a surprise to come in and sort of think, Okay, 0:11:54.040 --> 0:11:55.680 I need to get a handle on that project. 0:11:56.160 --> 0:11:58.720 Not a surprise, but definitely a stretch. 0:11:59.360 --> 0:11:59.959 It's new Taiar. 0:12:00.040 --> 0:12:02.360 It's very stretch from a capital perspective, stretch. 0:12:02.160 --> 0:12:04.600 From a capital and also just my own learning. Frankly, 0:12:04.640 --> 0:12:07.880 I think we're all learning in this space. Infrastructure is destiny. 0:12:07.960 --> 0:12:11.040 It's this wonderful phrase that Chris Lane has managed to 0:12:11.080 --> 0:12:13.360 get up there in the world, and we do think 0:12:13.400 --> 0:12:15.040 that this build is important. 0:12:15.120 --> 0:12:16.320 It's important for. 0:12:16.559 --> 0:12:21.280 US competitiveness, it's important for world productivity. It's important even 0:12:21.280 --> 0:12:23.960 with a national security lens. And so you are right. 0:12:24.120 --> 0:12:26.439 One of the key jobs I need to do is 0:12:26.480 --> 0:12:29.720 to figure out that capital allocation story. It's going to 0:12:29.760 --> 0:12:32.520 be both a working with partners, it's going to be 0:12:32.600 --> 0:12:35.959 raising financing, but it's always making sure that we are 0:12:36.040 --> 0:12:39.520 staying ahead of what will be required. Call it two 0:12:39.559 --> 0:12:43.000 three years out, because you can't just turn on compute 0:12:43.080 --> 0:12:45.640 today if you need it, you actually have to have 0:12:45.800 --> 0:12:48.960 thought about it, probably about three years ahead on that, 0:12:49.000 --> 0:12:49.440 if I may. 0:12:49.559 --> 0:12:51.040 One of the things I heard from some of your 0:12:51.040 --> 0:12:53.200 investors is you did a very good job early in 0:12:53.360 --> 0:12:56.240 explaining the basics of the plan, but the ultimate goal 0:12:56.280 --> 0:12:56.880 is AGI. 0:12:57.320 --> 0:12:58.040 That's correct. 0:12:58.960 --> 0:13:00.959 How confident do you feel you have that sort of 0:13:01.040 --> 0:13:03.680 into infrastructure in place or a plan to have it 0:13:03.840 --> 0:13:04.480 for AGI. 0:13:04.840 --> 0:13:07.199 I think we have the plan in place. I think 0:13:07.200 --> 0:13:09.000 if Sam we're sitting on the seat, he would tell 0:13:09.040 --> 0:13:10.720 you AGI is closer. 0:13:10.280 --> 0:13:13.720 Than most think, But what would you say? 0:13:14.120 --> 0:13:15.880 I would agree based on what I'm seeing. 0:13:15.920 --> 0:13:17.960 Like one of the best meetings I get to go 0:13:18.000 --> 0:13:20.280 to once in a while is the research meeting, And 0:13:20.360 --> 0:13:23.680 it would blow your mind to see what's already coming 0:13:23.800 --> 0:13:26.679 and what as we have learned how to take reasoning 0:13:26.720 --> 0:13:31.280 models like one preview yes on top of GPT models 0:13:31.920 --> 0:13:35.960 and the interplay between those, you're now really starting to 0:13:36.000 --> 0:13:41.320 see some incredible outcomes. PhD level outcomes where you have 0:13:41.440 --> 0:13:44.840 in your pocket human intelligence that is PhD level and 0:13:44.920 --> 0:13:49.400 physics and biology and chemistry in English literature, like whatever 0:13:49.480 --> 0:13:51.080 the job is you need to do if you're a 0:13:51.080 --> 0:13:54.680 healthcare researcher, if you're a banker, if you're an education 0:13:55.440 --> 0:13:58.120 the tool that you are now caring the power there 0:13:58.559 --> 0:13:59.439 blows my mind. 0:14:00.040 --> 0:14:02.440 You touched on it a moment ago, financing the needs 0:14:02.440 --> 0:14:06.199 to raise capital. You've just done a pretty astonishing large round. 0:14:06.320 --> 0:14:08.680 But a follow on, I mean you must have a 0:14:08.679 --> 0:14:11.520 good sense of the cadence of needing to raid funds 0:14:11.600 --> 0:14:13.600 on an annual basis. I don't know how you plan it. 0:14:13.840 --> 0:14:14.959 Yeah, so it goes back. 0:14:14.760 --> 0:14:17.000 To what you said, which is really understanding in your plan, 0:14:17.080 --> 0:14:19.520 what are your big expenses compute is the biggest, but 0:14:19.560 --> 0:14:21.160 we also need to run a company, so we have 0:14:21.240 --> 0:14:24.120 real operating expenses. We're right in the guts right now 0:14:24.160 --> 0:14:26.720 of FY twenty five planning. That is usually a three 0:14:26.800 --> 0:14:29.120 year outlook in most companies, and for us it needs 0:14:29.120 --> 0:14:31.400 to be because we have to make those compute decisions. 0:14:31.760 --> 0:14:34.240 And with that comes then, Okay, what is our balance 0:14:34.240 --> 0:14:36.560 sheet going to look like? What's our cash burn rate? 0:14:37.360 --> 0:14:39.680 At what point can we generate enough free cash flow 0:14:39.760 --> 0:14:42.400 to actually fulp the business? Not ready to tell you 0:14:42.480 --> 0:14:45.280 that today. That's for the next time we talk. And 0:14:45.320 --> 0:14:47.280 then on top of that, how do I help keep 0:14:47.280 --> 0:14:49.400 bringing our syndicative investors along? 0:14:49.440 --> 0:14:53.760 I called them with us. 0:14:54.280 --> 0:14:56.840 We are less than a week from the election, and 0:14:56.880 --> 0:14:58.760 I think about my own use of four to H 0:15:00.080 --> 0:15:02.920 not used it related to the elections searching for information, 0:15:03.120 --> 0:15:06.400 But are you preparing for that election and what impact 0:15:06.440 --> 0:15:07.600 might it have on open AI? 0:15:07.800 --> 0:15:09.040 Yeah, we absolutely are. 0:15:09.400 --> 0:15:12.840 We have to be very mindful from a safety perspective today. 0:15:12.840 --> 0:15:15.320 If you do searching around the election, you'll actually see 0:15:15.600 --> 0:15:18.560 that often we will not return a response or will 0:15:18.560 --> 0:15:20.920 return with a caveat. That says to be mindful of 0:15:20.960 --> 0:15:23.640 your sources. And I think I learned a lot of that. Frankly, 0:15:23.720 --> 0:15:27.120 yet nextdoor right, you cannot need to be careful of 0:15:27.160 --> 0:15:30.640 not being paternalistic or paternalistic around people. People need to 0:15:30.640 --> 0:15:34.480 be able to find information make their own educated decisions. 0:15:34.840 --> 0:15:36.800 But at the same time you also need. 0:15:36.680 --> 0:15:37.360 To be very aware. 0:15:37.400 --> 0:15:40.280 When you have a platform that today services two hundred 0:15:40.280 --> 0:15:43.240 and fifty million people every single week, we have to 0:15:43.320 --> 0:15:45.520 recognize that they're going to want to do things, and 0:15:45.560 --> 0:15:47.960 we need to provide avenues but in a safe and 0:15:48.000 --> 0:15:48.680 secure way. 0:15:49.160 --> 0:15:52.280 Open AI CFO Sarah Fryar here live in Las Vegas. 0:15:52.320 --> 0:15:55.200 Thank you very much. Thanks actually back to you. 0:15:57.480 --> 0:15:58.640 Ed, we thank you. 0:15:59.160 --> 0:16:02.800 Coming up in video, chips are still winding their way 0:16:02.880 --> 0:16:06.640 to sanctioned Russia. We discuss the alleged shipments of servers 0:16:06.640 --> 0:16:10.640 optimized for artificial intelligence via India. Meanwhile, we want to 0:16:10.640 --> 0:16:13.800 bring you some movement in Alphabet's shares, parent company of Google. 0:16:13.800 --> 0:16:17.440 Of course, there is a report from the Information saying 0:16:17.440 --> 0:16:20.680 that Meta Platforms, of course, owner of Facebook and Instagram, 0:16:20.840 --> 0:16:22.400 is trying to keep pace with the likes of open 0:16:22.440 --> 0:16:25.160 AI in developing AI. But they're also looking at a 0:16:25.200 --> 0:16:27.560 search engine that is going to crawl the web to 0:16:27.600 --> 0:16:32.800 provide conversational answers about current events to people using meta AI. Basically, 0:16:32.840 --> 0:16:35.880 they want to rely less on being and Google Search. 0:16:36.360 --> 0:16:39.040 We're up sixteen percent, but we did fade those rallies earlier. 0:16:39.120 --> 0:16:41.920 On that headline. This will be mad Technology. 0:16:54.040 --> 0:16:55.800 Quick check on Apple shares for you, because we know 0:16:55.840 --> 0:16:58.880 that they're showing us the latest max and the price 0:16:58.920 --> 0:17:02.520 points we are seeing. Of course, the iMac desktop new 0:17:02.600 --> 0:17:05.359 twenty four inch is going to be faster AI focused 0:17:05.480 --> 0:17:08.240 M four processor inside it one and ninety nine price 0:17:08.320 --> 0:17:10.919 points same as the prior model is faster, and it 0:17:10.960 --> 0:17:13.920 has an enhanced neural engine basically to help with his 0:17:14.040 --> 0:17:16.880 AI tasks. We're also, of course getting updated to the 0:17:16.920 --> 0:17:21.080 finally some access to Apple Intelligence its first iteration. Anyway, 0:17:21.160 --> 0:17:24.479 we're currently hired by almost a percentage point. Meanwhile, we 0:17:24.520 --> 0:17:27.320 turn our attention to today's big take. It focuses on 0:17:27.359 --> 0:17:31.080 some trade tracking data which shows that Indian farmer firm 0:17:31.280 --> 0:17:36.080 Shreya Life Sciences is selling top end Dell servers optimized 0:17:36.119 --> 0:17:40.880 for artificial intelligence to Russia. Bloomberg's Victoria dendrinum Co wrote 0:17:40.880 --> 0:17:43.840 the story, joining us, now, so is this new that 0:17:43.880 --> 0:17:46.800 we're starting to see India as a way of accessing 0:17:47.440 --> 0:17:49.400 in Nvidio chips for Russia, for example. 0:17:50.760 --> 0:17:53.240 So I think the roll of India has certainly come 0:17:53.280 --> 0:17:55.919 into focus for the West, so for Europe and the US. 0:17:57.160 --> 0:17:59.440 Over the past couple of years, they've been looking at 0:17:59.520 --> 0:18:03.119 various trees in Asia as trendshipment hubs where these goods 0:18:03.160 --> 0:18:07.240 can essentially come from subsidiaries, vendors, as tributors. These goods 0:18:07.320 --> 0:18:11.760 primarily manufactured by Western companies and primarily US companies actually, 0:18:12.960 --> 0:18:15.399 So the role of India is kind of I guess 0:18:15.440 --> 0:18:17.840 the magnitude of the role of India as a hub 0:18:17.920 --> 0:18:21.040 has certainly become much greater over the last few months. 0:18:21.160 --> 0:18:24.679 And why have they become such prominent actors in what 0:18:24.840 --> 0:18:29.520 is basically Russia trying to navigate barriers to accessing US tech. 0:18:30.920 --> 0:18:34.120 So there's a lot of reasons, I mean, partly when 0:18:34.119 --> 0:18:36.159 we talk to officials in the US and Europe about it, 0:18:36.200 --> 0:18:38.720 one thing they point to is that India has been 0:18:38.720 --> 0:18:40.800 buying a lot of Russian oil, and Russia has a 0:18:40.800 --> 0:18:43.760 lot of rupees at its disposal, so it's been using 0:18:43.760 --> 0:18:46.720 these rapeats to it's been spending them essentially buying these goods. 0:18:46.480 --> 0:18:47.040 Out of India. 0:18:47.040 --> 0:18:50.600 So that's one part, a big part driving this increase 0:18:50.640 --> 0:18:54.560 of this trade. Another reason is also that you know 0:18:54.600 --> 0:18:56.919 where Western officials in US and Europe have put a 0:18:56.920 --> 0:18:59.639 lot of effort into cracking down on other trendshipment hubs. 0:19:00.000 --> 0:19:02.119 For example, the earlier part of last year there was 0:19:02.119 --> 0:19:06.000 a big focus in the UAE, Turkey, Central Europe, Central Asia, 0:19:06.040 --> 0:19:09.439 sorry as areas where these goods were being sent to Russia. 0:19:09.520 --> 0:19:11.879 So I think a large part is the rupees that 0:19:11.920 --> 0:19:14.000 Russia has to spend. But another one is that they're 0:19:14.040 --> 0:19:16.760 cracking down. The West is cracking down on other areas 0:19:16.760 --> 0:19:18.359 where these goods were originally shipped from. 0:19:18.720 --> 0:19:22.360 Now these in video ships are in Dell servers known 0:19:22.400 --> 0:19:26.840 as power Edge XC nine six eighties, and Dell has said, look, 0:19:27.000 --> 0:19:30.280 since ever the sanctions came into place, they stopped shipments 0:19:30.320 --> 0:19:33.199 to Russia. But I'm interested in whether ultimately any of 0:19:33.240 --> 0:19:34.320 this is actually illegal. 0:19:35.960 --> 0:19:39.000 Well, technically it's not illegal in that India is not 0:19:39.080 --> 0:19:42.560 bound by US or European sanctions. And in terms of 0:19:42.560 --> 0:19:44.920 the companies, I mean it's true, you know, a chip 0:19:44.960 --> 0:19:47.560 produced by a company in the US, I mean it's 0:19:47.600 --> 0:19:50.560 it's trade cycle. I guess around the world it's impossibly 0:19:50.720 --> 0:19:55.040 difficult to track because you have vendors, distributors, subsidiaries, all 0:19:55.080 --> 0:19:59.240 these other kind of companies or you know, people that 0:19:59.359 --> 0:20:01.800 take part in the trade route. So in terms of 0:20:01.840 --> 0:20:05.199 legal responsibility is it's almost impossible to place that on 0:20:05.240 --> 0:20:08.040 someone sortily in the US who would be liable. But 0:20:08.119 --> 0:20:11.879 what could happen next post is that which has been happening, 0:20:11.920 --> 0:20:14.080 is that the US could, for example, designate a lot 0:20:14.119 --> 0:20:16.440 of these companies or a lot of these intermediaries around 0:20:16.480 --> 0:20:18.800 the world who do participate in the trade of these goods. 0:20:19.320 --> 0:20:21.520 It's a fascinating deep dive into the role of this 0:20:21.520 --> 0:20:24.960 one particular pharmaceutical company in India and the shipments that 0:20:24.960 --> 0:20:30.560 it's currently making. Victoria, thank you for bringing it, Victoria Trendino. 0:20:36.640 --> 0:20:37.720 Time now for talking tech. 0:20:37.760 --> 0:20:41.280 First up, Hong Kong is outland its first policy guidelines 0:20:41.280 --> 0:20:44.080 dedicated to the use of artificial intelligence in finance, and 0:20:44.200 --> 0:20:46.440 it's actually floated a tax break for crypto assets too 0:20:46.600 --> 0:20:47.680 the Hong Kong University of. 0:20:47.600 --> 0:20:48.480 Science and Technology. 0:20:48.520 --> 0:20:51.560 Meanwhile, it's also going to make a homegrown large language 0:20:51.560 --> 0:20:54.480 model available to the local financial services industry. 0:20:55.000 --> 0:20:57.080 Plus Japan's Olympus, which. 0:20:56.880 --> 0:21:01.320 Manufactures and distributes medical precision machines and instruments. Of course, 0:21:01.359 --> 0:21:04.159 previously famed for its cameras, It's pushed out at CEO 0:21:04.280 --> 0:21:07.520 less than two years into after investigating an allegation he 0:21:07.600 --> 0:21:10.399 purchased illegal drugs. The company's shares, as you can see, 0:21:10.440 --> 0:21:12.560 was declining some seven percent on Monday, the biggest in 0:21:12.600 --> 0:21:14.119 today slide. 0:21:13.680 --> 0:21:14.679 In almost three months. 0:21:15.119 --> 0:21:18.639 And Robin Hood is joining competitors in allowing retail traders 0:21:18.680 --> 0:21:21.639 to bet on election outcomes before next week's US. 0:21:21.560 --> 0:21:22.240 Vote for president. 0:21:22.440 --> 0:21:25.320 The company is rolling out contracts pegged to specific events, 0:21:25.480 --> 0:21:28.879 including whether a particular candidate will win an election. This 0:21:29.000 --> 0:21:32.240 as Elon Musk appeared at a New York Trump rally 0:21:32.320 --> 0:21:35.240 yesterday saying he could save the country two trillion dollars. 0:21:35.280 --> 0:21:40.000 Take a listen, how much do you think we can 0:21:40.119 --> 0:21:43.960 rip out of this wasted six point five trillion dollar 0:21:44.720 --> 0:21:46.360 Paris Biden budget. 0:21:46.720 --> 0:21:48.800 Well, I think we're can do at least two trillion. 0:21:58.480 --> 0:22:01.119 Welcome back to Blue Mega Technology and Karen Hyder, New York. 0:22:01.240 --> 0:22:02.760 Quick check on these markets for you, because we. 0:22:02.720 --> 0:22:05.200 Have been coasting hired to once again near those record 0:22:05.240 --> 0:22:07.480 highs for the NASDAG. Now's that one hundred still off 0:22:07.520 --> 0:22:09.840 of that high that we met back in July, we're 0:22:09.880 --> 0:22:11.080 still up three tens of percent. 0:22:11.119 --> 0:22:11.840 All eyes on the. 0:22:12.680 --> 0:22:15.080 Huge amount of earnings coming out when it comes to 0:22:15.119 --> 0:22:18.639 big tech. Of course, tomorrow we anticipate the likes of Alphabet, 0:22:18.680 --> 0:22:21.399 of Reddit, of AMD and then of course the metas 0:22:21.440 --> 0:22:23.040 the apples throughout the rest of the week. Have a 0:22:23.080 --> 0:22:24.840 quick look on what's moving in terms of under the 0:22:24.840 --> 0:22:27.120 hood of the Nasdaq one hundred right now, Looking though 0:22:27.160 --> 0:22:29.600 at what is a European name also traded in terms 0:22:29.640 --> 0:22:32.600 of its ADRs here in the United States. Phillips Electronics 0:22:32.640 --> 0:22:35.040 down by some sixteen percent. It finished shop Training down 0:22:35.080 --> 0:22:38.800 seventeen percent in Europe. Why key lack of demand coming 0:22:38.800 --> 0:22:42.320 from China. It's weighing on ge healthcare technologies today that's 0:22:42.359 --> 0:22:43.679 also off by some three percent. 0:22:43.800 --> 0:22:44.760 That company also. 0:22:44.600 --> 0:22:47.119 Caused Medical Equipment had already signaled they were seeing a 0:22:47.200 --> 0:22:49.200 lack of demand in the summer coming from China. 0:22:49.240 --> 0:22:51.560 But we look at Alphabet, still up sevent tens percent. 0:22:51.600 --> 0:22:53.720 It took a dip into negative territory earlier as the 0:22:53.720 --> 0:22:57.920 Information reported that Meta AI might be trying to reduce 0:22:57.960 --> 0:23:00.760 its dependence on Google Search and being and is still 0:23:00.960 --> 0:23:04.080 instead build its own method of scraping the internet for 0:23:04.240 --> 0:23:08.960 current answers to meta AI prompts. But now we're currently 0:23:09.000 --> 0:23:10.919 up to seven tens percent. All lies on their earnings 0:23:11.000 --> 0:23:12.720 later in the week. But now let's return to the 0:23:12.760 --> 0:23:15.560 juggernaut that is Apple as well helping lead the benchmarks 0:23:15.600 --> 0:23:19.200 high today. It's got a week full of announcements as well. 0:23:19.080 --> 0:23:21.399 As its earnings. Let's just go through what we've already 0:23:21.400 --> 0:23:21.800 heard today. 0:23:21.800 --> 0:23:24.520 Among the new products we understand, of course, has been 0:23:24.560 --> 0:23:28.000 this new iMac starting in two and ninety nine dollars. 0:23:28.040 --> 0:23:30.159 It's coming with that M four chip. All about of 0:23:30.160 --> 0:23:33.600 course AI. There an upgraded camera, Apple Intelligence as well, 0:23:34.040 --> 0:23:37.399 coming online as soon as today. Let's get to it 0:23:37.440 --> 0:23:39.680 with Ana rag Rana, and we're all trying to work 0:23:39.720 --> 0:23:41.760 out at the moment Anarag, how we're going to be 0:23:41.840 --> 0:23:45.200 using Apple Intelligence in our various Apple products. But how 0:23:45.240 --> 0:23:48.120 important are these announcements, particularly the MacUpdate. 0:23:49.320 --> 0:23:51.199 Yeah, see when you look at the mackup dates, I 0:23:51.200 --> 0:23:54.359 think its announcement is important from a tech point of view, 0:23:54.440 --> 0:23:57.480 just to showcase how good Apple is when it comes 0:23:57.520 --> 0:24:00.439 to the chip technology, how far it has come in 0:24:00.440 --> 0:24:03.920 the last four to five years. I think it's probably 0:24:03.960 --> 0:24:06.920 important from that more point of view than financial because 0:24:06.960 --> 0:24:09.120 as you can as you know, you know, Mac account 0:24:09.119 --> 0:24:13.119 for more less than ten percent of total sales for Apple, 0:24:13.240 --> 0:24:15.800 so financially not so much, but it's an important from 0:24:15.800 --> 0:24:16.600 a tech point of view. 0:24:17.119 --> 0:24:20.760 What's also been grinding everyone is the hopes that Apple 0:24:20.800 --> 0:24:23.960 Intelligence will of course make us all use and depend 0:24:24.000 --> 0:24:26.240 on artificial intelligence that much more. But the fact that 0:24:26.240 --> 0:24:28.840 it's not coming until December of the operating system update 0:24:28.920 --> 0:24:31.199 really to make it useful for us. How much has 0:24:31.200 --> 0:24:33.320 that been an issue for you from a perspective on 0:24:33.359 --> 0:24:34.359 Apple as a buy. 0:24:35.359 --> 0:24:37.240 Now when you look at it from a you know, 0:24:37.400 --> 0:24:40.320 just a product refresh cycle, we think this is a 0:24:40.359 --> 0:24:43.120 good catalyst, but for the long run, which means over 0:24:43.160 --> 0:24:46.440 the next few years, we will see this basically force 0:24:46.520 --> 0:24:49.960 customers or consumers who have Apple products to go out. 0:24:49.760 --> 0:24:50.480 And buy new things. 0:24:50.560 --> 0:24:52.760 I don't think it's going to have people rush out 0:24:52.840 --> 0:24:54.959 and get things over the next you know, six months. 0:24:55.040 --> 0:24:57.639 And I think that's where our discussion is slightly different 0:24:57.640 --> 0:25:00.840 than some of the other analysts are looking for. Is 0:25:00.920 --> 0:25:03.520 an iPhone supercycle. We don't think that's going to happen 0:25:03.560 --> 0:25:05.520 this year. We think that could be more of a 0:25:05.600 --> 0:25:08.200 phenomena with the iPhone seventeen launch. 0:25:08.359 --> 0:25:10.879 Yeah, I love the title of your latest react. You 0:25:10.920 --> 0:25:13.000 go to the Boomberg and mattnaged to get it, the 0:25:13.000 --> 0:25:15.840 Bloomberg Intelligence, and it says the launch. 0:25:15.560 --> 0:25:17.640 Is a long term driver for products. 0:25:18.000 --> 0:25:20.399 In the short term, there's some interesting news that's been 0:25:20.440 --> 0:25:24.720 broken around a key development of Apple being rolled out 0:25:24.840 --> 0:25:27.720 or not rolled out, it would seem in certain countries. 0:25:27.720 --> 0:25:29.480 Can you talk to us about Malaysia and whether or 0:25:29.520 --> 0:25:31.960 not it's important that iPhones won't be accessible there. 0:25:32.880 --> 0:25:34.919 So when you look at it, the launch of Apple 0:25:34.960 --> 0:25:37.919 Intelligence features that will be staggered throughout now as far 0:25:37.960 --> 0:25:40.520 as some of the emerging markets are concerned. Those are 0:25:40.560 --> 0:25:43.160 really important in markets. And I saw the same news 0:25:43.240 --> 0:25:46.520 releases you saw, and there was some investment decision that 0:25:46.600 --> 0:25:49.360 Apple did not make that mark. But you know, I'm 0:25:49.400 --> 0:25:52.119 fairly confident over the next twelve months or so, Apple 0:25:52.160 --> 0:25:54.199 will take care of that from its end. But the 0:25:54.200 --> 0:25:56.760 biggest market, or the most important thing for us going 0:25:56.800 --> 0:25:59.680 into the quarter is what's going really happening in China. 0:25:59.720 --> 0:26:02.120 And I think that, you know, people really forget how 0:26:02.160 --> 0:26:05.280 important that market is for Apple. And I think that's 0:26:05.320 --> 0:26:08.800 where some of the disappointment may be there, so I. 0:26:08.720 --> 0:26:10.160 Mean and I correct myself. 0:26:10.200 --> 0:26:13.160 Indonesia is blocking Apple from selling its later siphones. 0:26:13.200 --> 0:26:15.360 This is more a quarrel. 0:26:15.040 --> 0:26:18.760 About how much investment the company is making within Indonesia, 0:26:18.920 --> 0:26:22.440 feeling that not enough has been made. More broadly, how 0:26:22.480 --> 0:26:25.840 resolute is the emerging markets? How necessary is it for 0:26:25.920 --> 0:26:27.920 new markets to continue. 0:26:27.400 --> 0:26:28.280 To evolve Apple? 0:26:29.240 --> 0:26:31.560 See, it's incredibly important when you look at a market 0:26:31.640 --> 0:26:33.880 like the US, Let's say the population size of three 0:26:33.960 --> 0:26:37.159 hundred odd million, three hundred fifty million somewhere around that. 0:26:37.400 --> 0:26:40.840 Indonesia is the same size. So longer term, as those 0:26:40.880 --> 0:26:44.359 countries become more richer or more affluent, they will be 0:26:44.400 --> 0:26:48.240 looking at Apple products in order to you know, be 0:26:48.440 --> 0:26:51.679 a big part of that ecosystem. So, whether it's China, 0:26:51.760 --> 0:26:55.359 whether it's India, whether it's Brazil or Indonesia, all of 0:26:55.400 --> 0:26:57.359 these markets are extremely important for Apple. 0:26:57.920 --> 0:27:01.080 Anna Rag, we thank you so much Formegan Intelligence breaking 0:27:01.080 --> 0:27:03.720 it down with their latest Apple announcements. We push ahead 0:27:03.720 --> 0:27:06.720 to its numbers of course, coming to the market on Thursday. 0:27:06.760 --> 0:27:07.760 Meanwhile, coming up in. 0:27:07.680 --> 0:27:09.520 The here and now, we're going back to Money twenty 0:27:09.600 --> 0:27:13.000 twenty to sit down with Anthropic president Danielle am Ode 0:27:13.359 --> 0:27:16.240 That conversation up next, but first let's just check in 0:27:16.400 --> 0:27:19.359 on a stop that continues to rally hard. 0:27:19.440 --> 0:27:21.879 We are looking at former President. 0:27:21.640 --> 0:27:25.240 Donald Trump's social media startup DJT as it's known or 0:27:25.240 --> 0:27:28.960 Trump Media. Five week surge that's pushed the stock up 0:27:28.960 --> 0:27:32.840 by some two hundred and seventy percent. It's up nineteen percent, 0:27:32.880 --> 0:27:36.760 of course, unprofitable, worth about nine billion dollars. But this 0:27:36.840 --> 0:27:39.200 is after Trump held that very high profile event in 0:27:39.280 --> 0:27:42.720 Madison Square Garden on Sunday. This is retail investors perhaps 0:27:42.760 --> 0:27:45.960 backing ahead of the all important election next week. 0:27:46.240 --> 0:27:59.720 This is Brummet technology. 0:28:01.520 --> 0:28:03.680 This has been most technology, and we're live in Las 0:28:03.760 --> 0:28:07.880 Vegas and Money twenty twenty. It's really a fintech focus conference, 0:28:07.880 --> 0:28:11.400 but AI is front and center, and we're joined right 0:28:11.440 --> 0:28:15.480 now by Amthropic President Daniellamoday. And it's interesting you have 0:28:15.480 --> 0:28:19.240 a background in fintech pre AI. Now you're in AI 0:28:19.400 --> 0:28:22.360 and you're doing a lot of business with banks financial 0:28:22.400 --> 0:28:25.960 services companies. One point of difference with Anthropic maybe is 0:28:26.000 --> 0:28:28.560 you really focus on the enterprise customer, and you did 0:28:28.560 --> 0:28:32.000 it early. But give me a sense of the split, 0:28:32.280 --> 0:28:34.399 you know how much business you're doing with the banks 0:28:34.400 --> 0:28:36.119 and other financial services groups. 0:28:36.640 --> 0:28:38.480 Well ed, great to see you again, Thanks so much 0:28:38.480 --> 0:28:42.040 for having me on the program. So Andropiic really has 0:28:42.080 --> 0:28:47.080 the opportunities to support enterprises really across a wide array 0:28:47.160 --> 0:28:52.800 of different industries. So healthcare, legal services, financial services have 0:28:52.920 --> 0:28:57.200 really all been early enterprise customers for us, and we 0:28:57.280 --> 0:28:59.640 really believe this is in large part because of our 0:28:59.680 --> 0:29:04.400 focus on really building for businesses. Financial services has always 0:29:04.400 --> 0:29:07.840 been a cornerstone pillar for Anthropic as we have really 0:29:08.040 --> 0:29:09.560 built and expanded the cloud. 0:29:09.320 --> 0:29:14.040 Models, how our banks or investment firms using your large 0:29:14.080 --> 0:29:14.800 anguage models. 0:29:15.440 --> 0:29:17.920 So so much of what we'd seen, especially over the 0:29:17.960 --> 0:29:22.000 course of the past year is really these companies becoming 0:29:22.040 --> 0:29:26.320 more sophisticated about how they are integrating a tool like Claud. 0:29:26.880 --> 0:29:30.680 In particular, we're seeing many of these financial services and 0:29:30.680 --> 0:29:37.120 fintech companies using Quad for things like fraud detection, financial analysis, 0:29:37.160 --> 0:29:40.120 really partnering with their analysts on a wide array of 0:29:40.160 --> 0:29:45.280 different complex financial tasks. Customer support is also a use 0:29:45.320 --> 0:29:48.440 case that is really applicable across a wide array of 0:29:48.480 --> 0:29:53.160 financial services companies, as well as administrative support and so 0:29:53.280 --> 0:29:58.640 businesses like Jane Street, Bridgewater into it. Stripe and Coinbase 0:29:58.760 --> 0:30:01.520 are all customers that make use of quaud for many 0:30:01.600 --> 0:30:03.160 of the applications. 0:30:02.480 --> 0:30:03.560 That that I just mentioned. 0:30:03.640 --> 0:30:07.080 Stripe somewhere used to work something I know, not something 0:30:07.120 --> 0:30:10.320 known to you. What I understand from speaking to a 0:30:10.360 --> 0:30:12.200 lot of those that either working in banking or in 0:30:12.320 --> 0:30:15.240 investment or asset management is you have the sort of 0:30:15.280 --> 0:30:19.320 data security component and then a regulatory component. Why is 0:30:19.360 --> 0:30:21.640 it that they trust you with both of those pieces. 0:30:22.280 --> 0:30:28.240 So Anthropic has always had a very strong stance on trustworthiness, reliability, 0:30:28.680 --> 0:30:32.160 privacy and security of the systems that we are developing. 0:30:32.680 --> 0:30:36.080 And something we feel very strongly about is that privacy 0:30:36.080 --> 0:30:40.320 of data is an incredibly critical component of companies feeling 0:30:40.360 --> 0:30:44.480 comfortable using generative AI. So we have never trained on 0:30:44.560 --> 0:30:47.880 customer data by default, and we have always worked to 0:30:47.920 --> 0:30:51.920 integrate closely with our partners at AWS and GCP on 0:30:51.960 --> 0:30:53.120 the security side as well. 0:30:53.160 --> 0:30:55.080 In terms of regulation, there has been used in the 0:30:55.120 --> 0:30:58.800 past week, which is the UK's Competition of Markets Authorities 0:30:58.840 --> 0:31:02.960 looking at Googles partnership or investment in Anthropic, how are 0:31:02.960 --> 0:31:05.880 you working with the CMA to address their concerns. 0:31:06.400 --> 0:31:09.080 So we are fully cooperating with the CMA to share 0:31:09.160 --> 0:31:15.320 all requested information and fundamentally and dropic is an independent company. 0:31:15.720 --> 0:31:20.120 We operate in this new generative AI space and offer 0:31:20.320 --> 0:31:24.360 our models non exclusively on our first party via our 0:31:24.360 --> 0:31:28.720 consumer app, on Google GCP via Vertex, and also on 0:31:28.800 --> 0:31:30.520 Amazon Bedrock denna. 0:31:30.560 --> 0:31:34.320 I would say from a technology perspective, many are obsessed 0:31:34.320 --> 0:31:37.719 with agents at the moment. In your agentic tool is 0:31:37.760 --> 0:31:42.880 computer use, It's different. Why did you take that approach 0:31:42.920 --> 0:31:45.840 to basically having an agent that can look at what's 0:31:45.880 --> 0:31:48.760 on your screen, the actual hardware in front of you, 0:31:49.120 --> 0:31:50.680 and then engage with it. 0:31:51.400 --> 0:31:54.840 We really feel, first of all, that this technology is 0:31:54.880 --> 0:31:58.200 an incredible sort of potential leap forward for what these 0:31:58.240 --> 0:32:02.160 models will eventually think be able to do. And we've 0:32:02.200 --> 0:32:05.200 been very open that we think this is still in 0:32:05.320 --> 0:32:05.840 beta right. 0:32:06.360 --> 0:32:08.320 We've very much sort of shared there's. 0:32:08.200 --> 0:32:11.000 Still limitations of the technology, but we thought it was 0:32:11.040 --> 0:32:14.840 really important to release it to our customers today because 0:32:14.880 --> 0:32:20.440 there's so much potential for computer use to really transform how. 0:32:20.280 --> 0:32:21.960 People use a tool like claud. 0:32:22.120 --> 0:32:25.800 Right, you can imagine this much more complex assistant that 0:32:25.960 --> 0:32:29.000 is able to really partner with you, either by taking 0:32:29.480 --> 0:32:32.800 more complex actions on your computer or on the web. 0:32:33.080 --> 0:32:34.760 You can imagine this eventual. 0:32:34.440 --> 0:32:38.360 Virtual coworker really expanding what is humanly possible for people 0:32:38.360 --> 0:32:38.880 to achieve. 0:32:39.240 --> 0:32:42.320 There is a great gathering here in Vegas of your customers, 0:32:42.320 --> 0:32:44.200 some of them will be in the room later today, 0:32:44.760 --> 0:32:48.800 but also investors, people that are users of Clawed in. 0:32:48.760 --> 0:32:50.240 The various products you've shipped. 0:32:50.920 --> 0:32:53.280 How active are you and running the business of anthropic 0:32:53.360 --> 0:32:58.120 right now, Daniella? Raising money yourself, managing the compute costs 0:32:58.240 --> 0:33:01.640 versus pricing on your enterprise products. 0:33:01.720 --> 0:33:04.720 So anthropic, you know, like every company that is sort 0:33:04.720 --> 0:33:07.840 of operating in this space, requires a huge amount of 0:33:07.880 --> 0:33:11.200 compute to be able to really do the transformative research 0:33:11.240 --> 0:33:15.080 that we do, and so our researchers are constantly working 0:33:15.200 --> 0:33:18.480 to help optimize our compute and make sure that we're 0:33:18.560 --> 0:33:21.160 using the hardware as efficiently as possible. 0:33:21.320 --> 0:33:22.840 Cost of a new model the cost. 0:33:22.680 --> 0:33:23.840 Of a new model exactly. 0:33:23.880 --> 0:33:26.240 And we're really finding ways, you know, in this sort 0:33:26.240 --> 0:33:30.600 of incredible research field to help optimize how we're using 0:33:31.120 --> 0:33:34.160 these models, coming up with new research innovations that are 0:33:34.200 --> 0:33:37.280 really driving the pace of the generative AI innovation in general. 0:33:37.520 --> 0:33:40.520 Can we anticipate you raising more money as is. 0:33:40.520 --> 0:33:43.240 The case I'm sure you can imagine we are always, 0:33:43.320 --> 0:33:46.560 you know, looking to have conversations like that, but not 0:33:46.640 --> 0:33:47.920 actively fundraising right now. 0:33:48.240 --> 0:33:52.160 Less talked about is Anthropic also has a unique company structure. 0:33:52.800 --> 0:33:55.360 Are you happy with that structure? Do you envisage it 0:33:55.400 --> 0:33:56.520 evolving over time? 0:33:57.120 --> 0:34:02.240 So Anthropic is a public benefit corporate and a little 0:34:02.240 --> 0:34:06.040 bit different but pretty close. A public benefit corporation is 0:34:06.160 --> 0:34:11.680 actually a pretty well established corporate entity. It's very similar 0:34:11.760 --> 0:34:14.600 to sea corporation. It is a form of sea corporation, 0:34:15.200 --> 0:34:19.160 but it enables a company like Anthropic to be able 0:34:19.239 --> 0:34:23.319 to also prioritize its social impact mission in addition to 0:34:23.440 --> 0:34:26.520 all of the normal corporate activities. 0:34:25.880 --> 0:34:26.960 That we engage in. 0:34:27.440 --> 0:34:30.480 We are about a week away from election in this country. 0:34:31.440 --> 0:34:33.640 How is Anthropic preparing for that? But also do you 0:34:33.640 --> 0:34:37.160 have a sense of how customers, consumer customers or enterprise 0:34:37.200 --> 0:34:40.840 customers actually use some of the underlying models or tools 0:34:40.840 --> 0:34:43.480 they build on top of it in the context of 0:34:43.480 --> 0:34:44.600 the election. Maybe they don't. 0:34:45.080 --> 0:34:49.439 So Anthropic recently released a blog post really detailing all 0:34:49.480 --> 0:34:52.120 of the work that we are doing on election integrity. 0:34:52.440 --> 0:34:55.120 This is a topic where Anthropic has really been an 0:34:55.120 --> 0:34:58.920 industry leader. We have been working on election integrity and 0:34:58.960 --> 0:35:02.600 anti misinformation efforts for well over a year, and in 0:35:02.640 --> 0:35:05.120 the course of doing that work, we have partnered very 0:35:05.200 --> 0:35:09.240 very closely with both other industry actors but also civil 0:35:09.280 --> 0:35:13.839 society groups, really experts in this incredibly important area that 0:35:13.880 --> 0:35:16.000 we aim again to sort of be an industry leader 0:35:16.200 --> 0:35:17.440 in sort of setting the waterline. 0:35:17.440 --> 0:35:19.960 For Anthropic President Daniella m Oday. 0:35:20.120 --> 0:35:23.080 We will talk later today in a longer conversation on stage, 0:35:23.160 --> 0:35:25.080 but for now, Caroline, back to you in New York. 0:35:25.760 --> 0:35:27.839 Another brilliant conversation. We thank you. 0:35:28.120 --> 0:35:28.160 Ed. 0:35:36.280 --> 0:35:38.480 An Italian private equity outfit called. 0:35:38.320 --> 0:35:42.800 Bending Spoons already owns popular apps like Everanoe we Transfer, 0:35:43.120 --> 0:35:44.919 and they could be coming for your favorite app next. 0:35:45.239 --> 0:35:48.240 As Bloomberg's Mark Bergen writes, Bending Spoons has a type 0:35:48.520 --> 0:35:52.960 distressed businesses with a steady cash flow that sells subscription software. 0:35:53.400 --> 0:35:55.640 Mark berg enjoins us now, and you call it a 0:35:55.719 --> 0:35:59.160 new kind of private equity for the app generation. 0:35:59.280 --> 0:36:02.520 What is it that they're doing, mak Their term is 0:36:02.680 --> 0:36:05.040 they said if private equity had a baby with Google. 0:36:06.239 --> 0:36:08.359 I think the idea here is it's sort of like 0:36:08.360 --> 0:36:10.719 this this roll up private equity that we've seen and 0:36:10.719 --> 0:36:13.160 we have Constellation Software, which is in Canada. That sort 0:36:13.200 --> 0:36:17.680 of rolls up these pretty successful software businesses that they 0:36:17.719 --> 0:36:21.200 may not be going gangbusters, don't necessarily an IPO, but 0:36:21.200 --> 0:36:23.839 they are kind of printing money. What bending Spoon does 0:36:23.920 --> 0:36:26.239 is they kind of then they can them over to 0:36:26.560 --> 0:36:32.480 teams of new managers, researcher engineers and coders and data scientists, 0:36:33.080 --> 0:36:36.360 and then they allocate resources depending on which one's doing well. 0:36:36.560 --> 0:36:39.239 And so you've seen them sort of buying up more 0:36:39.280 --> 0:36:42.240 prominent ever Note was the most prominent one we transfer recently. 0:36:42.440 --> 0:36:44.799 We reported earlier this year they went after Vimeo, which 0:36:44.840 --> 0:36:47.359 is a public company. In our reporting and our story today, 0:36:47.400 --> 0:36:49.680 it looks like they're willing to spend upwards of one 0:36:49.719 --> 0:36:52.399 to two billion dollars on acquisition. So I think it's 0:36:52.400 --> 0:36:53.839 a name that people are going to become more and 0:36:53.840 --> 0:36:54.640 more familiar with. 0:36:55.000 --> 0:36:57.239 And Luca Ferrari, the guy in charge of it all, 0:36:57.280 --> 0:37:00.760 who's managed to get some celebrities to give him their money. 0:37:01.200 --> 0:37:03.560 What's interesting is you spoke with the former founder of 0:37:03.680 --> 0:37:06.440 ever Note, Phil Lebbin, who's now not part of the business, 0:37:06.480 --> 0:37:08.960 but he thinks some of the energy being put towards 0:37:08.960 --> 0:37:11.000 this business is perhaps a good thing, even if it 0:37:11.040 --> 0:37:12.040 means some job cuts. 0:37:13.400 --> 0:37:15.160 Yeah, I was actually a bit surprised. 0:37:15.200 --> 0:37:18.279 You know, typically there's obviously this sort of when you 0:37:18.320 --> 0:37:20.359 start a company and you leave it and you kind 0:37:20.360 --> 0:37:22.759 of feel like this parent, and I mean it was 0:37:22.840 --> 0:37:25.239 most striking to me. Started the story, Phil Ribbin, who 0:37:25.320 --> 0:37:28.080 ran every note for eight years, had never heard of 0:37:28.080 --> 0:37:30.440 Bending Spoons when he was kind of come over and 0:37:30.480 --> 0:37:32.719 he was asked as a shareholder to sign away the 0:37:32.719 --> 0:37:35.799 company to this Italian app developer. He told me, you know, 0:37:35.800 --> 0:37:38.520 two years in, he's been pleasantly surprised by the progress. 0:37:38.840 --> 0:37:39.960 He still uses it every day. 0:37:40.360 --> 0:37:43.640 Anecdotally he sees people using the features more often. On 0:37:43.640 --> 0:37:45.560 the flip side, you know, it's pretty easy to find. 0:37:45.680 --> 0:37:48.160 There's a lot more competition forever note It was kind 0:37:48.200 --> 0:37:50.279 of pretty dominant at one point in that kind of 0:37:50.400 --> 0:37:53.120 note taking apps, and there are people that have have 0:37:53.280 --> 0:37:55.600 left because of the price increases. But the company makes 0:37:55.600 --> 0:37:58.359 the argument that they've actually made it better and that 0:37:58.360 --> 0:38:00.279 they're not like private equity where they sort of are 0:38:00.280 --> 0:38:03.160 trying to flip these assets, but they claim to buy 0:38:03.200 --> 0:38:05.600 these companies and sort of hold on them for life. 0:38:06.719 --> 0:38:10.320 Even referencing Warren Buffett the Oracle of Omaha is perhaps 0:38:10.320 --> 0:38:13.040 someone that they see themselves akin to in terms of 0:38:13.040 --> 0:38:15.279 a business model. Mark Bergen. It's a brilliant story, we are. 0:38:16.320 --> 0:38:20.080 It's all in BusinessWeek. Go see it. We thank you Mark. Meanwhile, 0:38:20.320 --> 0:38:22.279 let's just turn our attention to the German juggle all 0:38:22.280 --> 0:38:25.160 that is Volkswagen. It's announcing plans to cut expenses in 0:38:25.160 --> 0:38:27.440 an effort to become even more competitive. But the automaker 0:38:27.480 --> 0:38:31.000 plans to close at least three frack factories in Germany, 0:38:31.280 --> 0:38:33.879 cut wages by ten percent, and the plan could also 0:38:33.960 --> 0:38:36.240 lead to tens of thousands of job cuts in Europe's 0:38:36.280 --> 0:38:39.600 largest economy. Another car company also looking to cut costs 0:38:39.640 --> 0:38:42.320 here in the United States, Forward, currently trading up two percent. 0:38:42.560 --> 0:38:44.799 They're set to report their third quarter earnings after the bell. 0:38:45.400 --> 0:38:48.439 Stefan Nikola is with us at from Berlin to really 0:38:48.480 --> 0:38:51.480 hone in on Volkswagen. First and foremost, this is an 0:38:51.520 --> 0:38:56.000 ev story, a competition with China story, and an extraordinary 0:38:56.040 --> 0:38:57.800 move to be shutting factories. 0:38:59.600 --> 0:39:00.440 Autely. 0:39:00.560 --> 0:39:03.480 This is a big move, and it really suggests that 0:39:03.560 --> 0:39:07.920 the golden years are over for this ind industrial juggernaut 0:39:08.040 --> 0:39:12.040 in Germany. Sales are slowing in Europe, the main VW 0:39:12.360 --> 0:39:15.200 brand that brought us iconic models like the Golf and 0:39:15.239 --> 0:39:18.879 the Beadle is struggling. It's struggling at home, but it's 0:39:18.960 --> 0:39:23.680 also struggling in China where local manufacturers like BYD are 0:39:23.760 --> 0:39:26.319 taking over, and that is really a big problem and 0:39:26.440 --> 0:39:28.920 management knows they need to make cuts. 0:39:29.600 --> 0:39:31.839 What's also, of course a weak point is not only 0:39:31.840 --> 0:39:34.440 their ability to penetrate China, but also a lack of 0:39:34.520 --> 0:39:36.080 demand at home in Europe. 0:39:38.400 --> 0:39:43.480 Yeah, absolutely absolutely, and the German economy, as we know, 0:39:43.960 --> 0:39:47.480 is stagnating, but car sales are down in Europe as 0:39:47.560 --> 0:39:51.320 a whole. The European car market is still a fifth 0:39:51.400 --> 0:39:55.560 below pre pandemic levels, so it has never caught back 0:39:55.640 --> 0:39:59.040 up with the time before the pandemic, and that really 0:39:59.040 --> 0:40:03.200 means there's overc opacity. And you know, at least three 0:40:03.320 --> 0:40:08.000 factories to be closed in Germany, while there's negotiations about 0:40:08.000 --> 0:40:10.760 that is still ongoing. Of course, that is a big 0:40:10.840 --> 0:40:13.719 number and it's yeah, it's leading to big headlines in 0:40:13.760 --> 0:40:14.440 Germany here. 0:40:15.480 --> 0:40:19.720 What then, of other automakers, we think of Mercedes Benz 0:40:19.760 --> 0:40:24.480 for example, really the refined side of automaking German based 0:40:24.520 --> 0:40:27.080 as well. How have they managed to navigate China or 0:40:27.120 --> 0:40:29.160 not release the competition in evs too. 0:40:31.440 --> 0:40:34.920 Yeah, they're all struggling in China. All the Western carmakers 0:40:34.960 --> 0:40:41.720 are struggling. Maybe Tesla is a small exception, but BMW, Porsche, Mercedes, 0:40:42.000 --> 0:40:45.920 they're all struggling because the market there is shifting rapidly 0:40:45.960 --> 0:40:51.120 to evs and the local customer seems to favor Chinese 0:40:51.160 --> 0:40:55.440 evs at the moment. And we also have the problem 0:40:56.120 --> 0:40:59.000 that there is a luxury slow down in China. We 0:40:59.080 --> 0:41:01.480 have the real estate crime is still so people are 0:41:01.480 --> 0:41:04.400 holding off purchases. So that is just bad news in 0:41:04.440 --> 0:41:07.239 general for all these Western luxury carmakers. 0:41:07.719 --> 0:41:10.839 Look, there's a lot of pre announcements to digest from Volkswagen, 0:41:10.960 --> 0:41:13.600 but we also are anticipating their numbers, their earnings, which 0:41:13.600 --> 0:41:15.680 aren't going to be pretty. We also sit here in 0:41:15.680 --> 0:41:18.000 the US eyeing what Ford is going to be telling us, 0:41:18.040 --> 0:41:20.960 and we're anticipating actually some decent growth in from an 0:41:21.000 --> 0:41:22.600 earnings per share basis, But if I look at the 0:41:22.640 --> 0:41:25.800 whare the revenue is expected going to be flat. Stefan, 0:41:25.920 --> 0:41:27.680 can you give us a taste of what to expect 0:41:27.719 --> 0:41:28.640 in some of these earnings? 0:41:30.719 --> 0:41:33.640 Yeah, I mean We've had several profit warnings over the 0:41:33.680 --> 0:41:38.040 past weeks and months from basically every major European car maker, 0:41:38.440 --> 0:41:42.080 and you know the fave earnings, the Volkswagen earnings on 0:41:42.120 --> 0:41:43.680 Wednesday are not going to be good. 0:41:44.440 --> 0:41:46.640 We know that they're. 0:41:46.280 --> 0:41:51.600 Going to be reporting declining sales and profitability. That's already expected. 0:41:51.840 --> 0:41:55.319 The question is what will they say about twenty twenty five. 0:41:55.680 --> 0:41:57.480 Is there a light at the end of the horizon, 0:41:57.640 --> 0:42:01.200 will things improve? That's what in West we'll want to hear. 0:42:01.800 --> 0:42:05.319 And indeed, German employees to Stefan Nikola, we thank you 0:42:05.400 --> 0:42:08.120 so much, coming live from Berlin. Meanwhile, that does it 0:42:08.160 --> 0:42:10.480 for this edition of Bloomberg Technology. You don't want to 0:42:10.480 --> 0:42:13.120 forget to check out our podcast, all those incredible conversations 0:42:13.160 --> 0:42:16.120 from Open Ai of course, from the likes of Daniella 0:42:16.239 --> 0:42:17.960 Mode as well and Anthropic. 0:42:18.160 --> 0:42:22.960 Don't miss it. This is Blomberg Technology.