WEBVTT - Nvidia Drops and AI Regulation

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<v Speaker 1>From Mahard where Innovation of Money and Power Collie in

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<v Speaker 1>Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde

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<v Speaker 1>and Ed Ludlove.

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<v Speaker 2>I'm Caroline Hyde at Bloomberg's Weld headquarters in New York

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<v Speaker 2>and am Ed Ludlow in San Francisco.

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<v Speaker 3>This is Bloomberg Technology.

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<v Speaker 2>Coming up. We break down the market action as equities

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<v Speaker 2>trade in the red and inn video drops for the

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<v Speaker 2>first time since it's a blowout earnings report.

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<v Speaker 4>Plus, we'll talk artificial intelligence as the Biden administration weighs

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<v Speaker 4>how aggressively to regulate new artificial intelligence tools like chat, GPT, and.

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<v Speaker 2>A mid recent termoil in the US banking system. One

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<v Speaker 2>fintech startup saw revenue surge. We'll discuss why, plus so

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<v Speaker 2>much more throughout the show, including where public markets are

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<v Speaker 2>currently trading ed. We're seeing a little bit of a

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<v Speaker 2>dismal feel to the NASDAC today. We're dropping about seven

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<v Speaker 2>tenths of a percent nervousness. Nervousness out there that maybe

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<v Speaker 2>some of the economic data in the US is just

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<v Speaker 2>too strong. The Federal Serve is still going to have

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<v Speaker 2>to call this economy the Jolts data. Basically job openings

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<v Speaker 2>looking much better than any single economist out there had anticipated.

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<v Speaker 2>But what's interesting is you weave in therefore perhaps the

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<v Speaker 2>sell off, well, the buying that we see in two

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<v Speaker 2>year years actually just dipping a little bit. That's all

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<v Speaker 2>around where we go in terms of the debt ceiling

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<v Speaker 2>as well, whether we get some sort of agreement finally

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<v Speaker 2>push forward. We're hearing from Kanie Lynes just at the

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<v Speaker 2>end of the previous show on that. But what's notable

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<v Speaker 2>is also the fact that yes, economic data in the

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<v Speaker 2>US perhaps signing too much on the positive side, and

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<v Speaker 2>over in China and Europe that PMI and manufacturing data

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<v Speaker 2>looking weak. So we sell off once again in terms

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<v Speaker 2>of those US listed Chinese stocks. Let's move on and

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<v Speaker 2>see what's happening elsewhere in the world of technology. I'm

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<v Speaker 2>looking at what's happening in the world of crypto, because

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<v Speaker 2>what a dire amount month. We end up the month

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<v Speaker 2>of May down more than eight percent. This is the

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<v Speaker 2>worst since November when FTX collapsed. Of course, so there's

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<v Speaker 2>significant perhaps pullback and some of the games we've seen

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<v Speaker 2>going on in the crypto world. But dig into some

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<v Speaker 2>of the microne names that we're seeing on a move today.

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<v Speaker 4>Yeah, some of that nervousness you're talking about certainly coming

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<v Speaker 4>from earnings. Hewlett Packard Enterprise, the maker of networking or

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<v Speaker 4>office infrastructure tools, down seven percent, pretty big decline. It's

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<v Speaker 4>forecasts of the current period really coming in below expectations.

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<v Speaker 2>HP Inc.

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<v Speaker 4>Not to be confused with the maker of laptops missing

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<v Speaker 4>sales in the court, had just gone the fiscal second

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<v Speaker 4>quarter that giving some concern around demand for PC. But

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<v Speaker 4>Bloomberg Intelligence our colleagues, they're saying, actually there was evidence

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<v Speaker 4>that the market for PC's bottoming out. Based on what

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<v Speaker 4>HP Inc. Had to say, tut the down two percent.

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<v Speaker 4>Elon Musk over in China, giving back some of its

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<v Speaker 4>recent games, coming off a two month high. Elon Musk

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<v Speaker 4>photographed having dinner at a restaurant in China. Heats at

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<v Speaker 4>restaurants just like the rest of us.

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<v Speaker 3>Not sure me. I'm having much waiting on the stock.

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<v Speaker 4>But a lack of news for us mere mortals driving

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<v Speaker 4>Tessa action in the chip space. Actually really interesting, Intel

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<v Speaker 4>making significant gains now up four percent, had been up

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<v Speaker 4>significantly higher after the CFO said revenue in the current

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<v Speaker 4>period will come at the upper half of its previously

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<v Speaker 4>guided projection or range, that giving investors some confidence, and

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<v Speaker 4>then in Vidia down three point seven percent is actually

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<v Speaker 4>it's biggest drop since February. But remember we're coming off

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<v Speaker 4>of record close Tuesday evening, and of course twenty four

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<v Speaker 4>hours after Nvidia touched a one trillion dollar market cap

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<v Speaker 4>for the first time.

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<v Speaker 3>Some profit taking.

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<v Speaker 2>Perhaps, yeah, maybe, just maybe. And we've got to think

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<v Speaker 2>about the profit taking more broadly, because an awful lot

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<v Speaker 2>of the rally that we've seen so far this year

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<v Speaker 2>has been thanks to just a very few names, and

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<v Speaker 2>that's highlighted by the recent report coming from Joanne Feenim

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<v Speaker 2>with Police to welcome her to the show. Ed partner

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<v Speaker 2>and portfolio and manager over at Advisor's Capital Management. And

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<v Speaker 2>I read your note with real interest as we were,

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<v Speaker 2>of course still trying to muddy through the macro what's

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<v Speaker 2>happening in terms of debt ceilings and the like. But

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<v Speaker 2>talk to us are just how important a certain few

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<v Speaker 2>names of ultimately tech stocs have been to the rally

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<v Speaker 2>so far this year.

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<v Speaker 5>Yeah, Caroline, you know, we got a lot of inquiries

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<v Speaker 5>from our clients about how much the market has gone

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<v Speaker 5>up this year and is this a good time to

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<v Speaker 5>get into equities. And when you break down, there are

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<v Speaker 5>really two stock markets. There's the super seven, the biggest

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<v Speaker 5>tech and consumer companies like Amazon, Tesla, Microsoft, Apple, Google,

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<v Speaker 5>obviously in Nvidia that have served on average as of

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<v Speaker 5>Friday's closed, they are up sixty seven percent year to date,

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<v Speaker 5>whereas the rest of the market is only a zero

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<v Speaker 5>point three percent.

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<v Speaker 6>And that really does tie into two narratives.

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<v Speaker 5>One the growth opportunity related to AI on the one hand,

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<v Speaker 5>and then the rest of the market, which is all

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<v Speaker 5>about recession risks, intrast rate risk, inflation risk as we're

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<v Speaker 5>seeing materialized today.

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<v Speaker 2>Let's dig deeper into the AI equation because yes, in

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<v Speaker 2>Nvidia now back below that one trillion, but still basically

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<v Speaker 2>what a surge. Are we putting too many eggs in

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<v Speaker 2>just a very few baskets? Are you on the sort

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<v Speaker 2>of Kafy Woods side of the equation that there are

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<v Speaker 2>other companies that are going to win here and you

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<v Speaker 2>should start looking at better valuations out.

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<v Speaker 5>Yeah, Caroly, it's hard to tell how much we're going

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<v Speaker 5>to get out of AI over the long term, but

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<v Speaker 5>it's pretty clear that the companies that are enabling AI,

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<v Speaker 5>whether it's through the chips like Nvidea provides, or whether

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<v Speaker 5>it's the software and deployment like Amazon Web Services, Google,

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<v Speaker 5>Microsoft are enabling. What I think investors recognize is that

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<v Speaker 5>even though we don't know all the details, we know

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<v Speaker 5>that AI and it's spread across the economy is going

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<v Speaker 5>to provide years of growth for these companies. And that's

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<v Speaker 5>a step change in what we expected these companies to

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<v Speaker 5>be able to do, you know, just some months ago,

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<v Speaker 5>and so I think that's warranted. It isn't to say

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<v Speaker 5>that there aren't opportunities out there, and you know, investors

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<v Speaker 5>can look for those, but we think these are solidly

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<v Speaker 5>in the middle of this and it's a less risky

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<v Speaker 5>way I think to play the AI move over time,

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<v Speaker 5>and then you can look beyond that into companies adopting

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<v Speaker 5>AI in industrials, in healthcare. There are plenty of opportunities

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<v Speaker 5>out there. We'll learn more about them as time goes on.

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<v Speaker 4>Johan Kaffee Wood our programming our colleagues in Asia. Overnight

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<v Speaker 4>she's moved her focus on from Nvidia Tesla to the

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<v Speaker 4>next big bet.

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<v Speaker 3>Have listened to what she had said.

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<v Speaker 7>We are really happy that investors who own benchmarks like

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<v Speaker 7>the Nasdaq and QQQ still own Nvidia.

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<v Speaker 8>They own it in some of our portfolios. But we're

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<v Speaker 8>onto the next thing. Nvidia is a hardware stock, and

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<v Speaker 8>sure it has some software, but the history of hardware

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<v Speaker 8>and software is the bigger beneficiary.

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<v Speaker 7>Over time is going to be software, is.

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<v Speaker 4>Going to be software. I think you note that investors

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<v Speaker 4>are looking to move money into software, which can mean

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<v Speaker 4>a broad range of things, right cloud, SaaS enterprise. What

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<v Speaker 4>are the corners of that sub sector that interests you?

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<v Speaker 6>Oh yeah, there are going to be many. I mean

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<v Speaker 6>the adoption of AI.

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<v Speaker 5>Into software tools across multiple and markets I think is significant.

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<v Speaker 5>You know, we own a company, for example, called Slunk

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<v Speaker 5>in our growth strategy. They are a big data analytics company,

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<v Speaker 5>and AI is going to play an increasingly important role there.

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<v Speaker 5>From Nvidia's perspective, you know, the tying of hardware to

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<v Speaker 5>software is actually pretty critical to what they're enable enabling

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<v Speaker 5>their customers to do. It's also why their gross margins

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<v Speaker 5>are going up, and so you know, we see in

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<v Speaker 5>hardware and software to be more and more tied over time,

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<v Speaker 5>which I.

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<v Speaker 6>Think is why you know, in Vidia is such an

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<v Speaker 6>interesting opportunity here.

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<v Speaker 5>Not to say one should potentially take a little bit

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<v Speaker 5>of profits at this time, which we did for clients

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<v Speaker 5>actually after they recorded. But going forward, yeah, there are

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<v Speaker 5>going to be plenty of opportunities in software as well.

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<v Speaker 3>Yeah, Karry.

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<v Speaker 4>The point that I make as well is like this

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<v Speaker 4>obsession with a small group of US domicile names, right

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<v Speaker 4>the megacap tech, But if you look at the commentary

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<v Speaker 4>of the broader market, particularly the bomb market, when we

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<v Speaker 4>think about this economy and global inflation, everyone's got an

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<v Speaker 4>eye on China.

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<v Speaker 2>And well, Elon Musk is there at the moment, isn't

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<v Speaker 2>he as well that we were just highlighting a bit earlier?

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<v Speaker 2>I mean, joan to that point, how much when you're

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<v Speaker 2>looking at the macro, when you're looking at what's happening

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<v Speaker 2>here in the US and everyone seeing the seven winners

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<v Speaker 2>the rest leaving behind. When we think about where inflation's at,

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<v Speaker 2>how much are you looking for your investor base at oh, China,

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<v Speaker 2>Europe being opportunities or being just there as you need

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<v Speaker 2>to stay well away from at the moment.

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<v Speaker 5>You know, there's always a role for international exposure in portfolios.

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<v Speaker 5>We have actually separate international strategies in addition to some

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<v Speaker 5>strategies owning some international names.

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<v Speaker 6>China clearly has become more of a concern.

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<v Speaker 5>I think investors were overly optimistic about how much the

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<v Speaker 5>reopening we'll be able to drive demand in the near term,

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<v Speaker 5>Which isn't to say that China is not going to

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<v Speaker 5>be a very important source of conservat demand. They have

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<v Speaker 5>massively moved a big chunk of their population into the

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<v Speaker 5>middle class and that's going to be a foundation for

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<v Speaker 5>buying over many, many years.

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<v Speaker 6>So you know, overall, there are some attractive valuations.

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<v Speaker 5>Our approach is to look for companies in countries as

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<v Speaker 5>opposed to investing in countries as a whole, and that

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<v Speaker 5>way we can hand select, as we do in all

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<v Speaker 5>of our strategies. You know, back to the hardware side,

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<v Speaker 5>the advantage we're seeing that Ed mentioned the focus on

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<v Speaker 5>US I think comes from the deep modes right that

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<v Speaker 5>our companies have created around this technology. Now as a

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<v Speaker 5>semiconductor analyst for ten years, and one of the key

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<v Speaker 5>things there was digging into the technology advantage that companies

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<v Speaker 5>like Nvidia and Google teaming up with Broadcom to develop

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<v Speaker 5>an alternative big chip to be able to do these

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<v Speaker 5>AI training computations shows that mode is very deep.

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<v Speaker 6>It supports their margins. So I think it's not wrong

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<v Speaker 6>for investors.

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<v Speaker 5>To recognize that the source, right of a lot of

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<v Speaker 5>the gains are going to be in these US companies.

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<v Speaker 4>You know, we learn that one morning a market does

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<v Speaker 4>not make But it is interesting that there's more emphasis

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<v Speaker 4>right now on current risks rates recession. How much is

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<v Speaker 4>that going to impact the technology sector going forward? Do

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<v Speaker 4>you think from this moment right now?

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<v Speaker 9>Yeah?

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<v Speaker 5>Great, great thought there. As I said, we have two

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<v Speaker 5>stock markets right now. We have the investor focus on

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<v Speaker 5>which companies out there can actually provide years of growth

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<v Speaker 5>with or without a recession. Right, that's secular growth and

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<v Speaker 5>now it's been revealed in AI that that's going to

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<v Speaker 5>be significant. And then you have the rest of the

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<v Speaker 5>market ed and I think that's the market where they're

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<v Speaker 5>going to be really focused on those recession risks, and

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<v Speaker 5>rightly so. Right the jolt state of this morning suggests

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<v Speaker 5>that the Fed's going to have to raise rates again

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<v Speaker 5>instead of pausing, and it really throws into doubt the

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<v Speaker 5>FED being able to cut rates towards the end of

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<v Speaker 5>the year, and that makes investors worry that those higher

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<v Speaker 5>rates are going to constrain lending that's actually going to

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<v Speaker 5>trigger a recession.

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<v Speaker 6>The FED obviously would like to avoid that.

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<v Speaker 5>So there's just a massive amount of uncertainty right now,

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<v Speaker 5>and we're seeing it in the prices of stocks in

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<v Speaker 5>the rest of the market, where secular growth isn't as

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<v Speaker 5>big a driver, where the sickle could concerns are far

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<v Speaker 5>more important.

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<v Speaker 6>But the patient investors should really look beyond this.

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<v Speaker 5>Equities do a terrific job over the long term of

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<v Speaker 5>delivering the ability to build wealth. So it's an opportunity

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<v Speaker 5>to get some of those companies in the rest of

0:11:02.640 --> 0:11:04.719
<v Speaker 5>the in the rest of the market and build those

0:11:04.760 --> 0:11:06.440
<v Speaker 5>positions now while.

0:11:06.360 --> 0:11:09.199
<v Speaker 6>Risks are high, and if you're a long term investor, you.

0:11:09.160 --> 0:11:13.400
<v Speaker 5>Can look beyond that and build really solid, diversified portfolios.

0:11:12.920 --> 0:11:15.679
<v Speaker 2>And take profit in the seven names that have driven

0:11:15.760 --> 0:11:16.200
<v Speaker 2>us thus far.

0:11:17.120 --> 0:11:18.920
<v Speaker 6>We've done some of that absolutely.

0:11:18.960 --> 0:11:21.440
<v Speaker 5>You know, we're actually slightly now underweight and video we've

0:11:21.480 --> 0:11:24.640
<v Speaker 5>been overweight for the last year. And I think it's

0:11:24.640 --> 0:11:27.120
<v Speaker 5>appropriate to make sure that the risk exposure you have

0:11:27.160 --> 0:11:30.880
<v Speaker 5>in a portfolio is balanced against you know, how the

0:11:30.880 --> 0:11:35.920
<v Speaker 5>potential return from here is now confronting the level of

0:11:36.040 --> 0:11:38.640
<v Speaker 5>risk that we see, you know, across the global economy.

0:11:38.880 --> 0:11:43.440
<v Speaker 4>Jo Am Feenie Partner, Profolio Manager Advisor's Capital Management one morning.

0:11:43.440 --> 0:11:45.079
<v Speaker 4>A market does not make, but it's good to get

0:11:45.080 --> 0:11:45.839
<v Speaker 4>a snapshot of view.

0:11:45.840 --> 0:11:56.360
<v Speaker 3>Thank you very much. Credit Card starts up.

0:11:56.400 --> 0:11:58.720
<v Speaker 4>Brex has seen a surge and usage of its products

0:11:58.720 --> 0:12:01.959
<v Speaker 4>following this year's regional banking term or the think tech

0:12:02.120 --> 0:12:04.880
<v Speaker 4>company on track to reach roughly five hundred million in

0:12:04.920 --> 0:12:07.959
<v Speaker 4>recurring revenue over the next twelve months of it's if

0:12:08.640 --> 0:12:11.600
<v Speaker 4>its current pace of growth continues. Joining us now to

0:12:11.679 --> 0:12:16.240
<v Speaker 4>discuss is Brex co founder Enriq dubigraph in Rik what's

0:12:16.280 --> 0:12:20.040
<v Speaker 4>driving this. That's a pretty big build up in forward

0:12:20.080 --> 0:12:21.080
<v Speaker 4>looking revenue.

0:12:20.800 --> 0:12:24.640
<v Speaker 10>Right, Yeah, the first thank you so much for having

0:12:24.920 --> 0:12:28.240
<v Speaker 10>me here. So we're actually announcing that there's two products

0:12:28.240 --> 0:12:29.120
<v Speaker 10>that crossed.

0:12:28.760 --> 0:12:30.240
<v Speaker 11>Over one hundred million in revenue.

0:12:30.520 --> 0:12:35.120
<v Speaker 10>Which is our empower product, which is replacing concur for

0:12:35.360 --> 0:12:38.800
<v Speaker 10>travel and expense for most businesses. And also our business

0:12:38.800 --> 0:12:44.280
<v Speaker 10>Accounts right which can do operational payments, deposit checks, all

0:12:44.320 --> 0:12:46.720
<v Speaker 10>the kind of like traditional banking activities for our business

0:12:46.760 --> 0:12:47.400
<v Speaker 10>in one place.

0:12:47.720 --> 0:12:49.600
<v Speaker 11>And both of them crossed over one hundred million.

0:12:49.679 --> 0:12:52.839
<v Speaker 10>So now we have three products that crossed one hundred

0:12:52.840 --> 0:12:53.480
<v Speaker 10>million revenue.

0:12:53.559 --> 0:12:55.880
<v Speaker 11>That's something that we're like really really excited about.

0:12:56.960 --> 0:12:59.280
<v Speaker 4>So the one hundred million in annual recurring revenue for

0:12:59.320 --> 0:13:02.839
<v Speaker 4>the business account, it's unit and Enpower Bloomberg sources saying

0:13:02.840 --> 0:13:06.280
<v Speaker 4>that company wide and you're recurring revenue on track for

0:13:06.320 --> 0:13:07.360
<v Speaker 4>about five hundred million.

0:13:07.400 --> 0:13:09.839
<v Speaker 3>What is it that makes bres so.

0:13:09.880 --> 0:13:12.960
<v Speaker 4>Attractive to startups that you've done business with since the

0:13:13.000 --> 0:13:13.840
<v Speaker 4>fallout of SVB.

0:13:16.000 --> 0:13:18.320
<v Speaker 11>So, I think there are two kind of main growth drivers.

0:13:18.320 --> 0:13:22.720
<v Speaker 10>The first one is actually our enterprise segment of the business.

0:13:22.760 --> 0:13:25.480
<v Speaker 10>So Empower, which is our spend management solution, has been

0:13:25.520 --> 0:13:28.720
<v Speaker 10>serving customers such as door Dash, Coinbase, indeed that has

0:13:28.720 --> 0:13:32.640
<v Speaker 10>glassed or Elimonade, et cetera truck and I think both startups,

0:13:32.720 --> 0:13:35.520
<v Speaker 10>mid sized companies and a large enterprises have been attracted

0:13:35.800 --> 0:13:38.720
<v Speaker 10>for a product because it's super easy to use for employees.

0:13:38.760 --> 0:13:40.120
<v Speaker 10>You know, you can just slip your car and your

0:13:40.120 --> 0:13:43.800
<v Speaker 10>expenses are done. It's extremely global that works all over

0:13:43.840 --> 0:13:46.480
<v Speaker 10>the world for all your subsidiaries all over the world,

0:13:46.840 --> 0:13:49.240
<v Speaker 10>and that's been like growing a lot as remote work

0:13:49.280 --> 0:13:51.520
<v Speaker 10>grows and people are hiring internet a lot of focus

0:13:51.600 --> 0:13:54.800
<v Speaker 10>on experience. The second one is our banking product, and

0:13:54.840 --> 0:13:57.520
<v Speaker 10>I would say that, yes, the regional banking crisis definitely

0:13:57.520 --> 0:13:59.679
<v Speaker 10>had We didn't know if it was going to be

0:13:59.720 --> 0:14:01.439
<v Speaker 10>a net negative for Brax.

0:14:01.480 --> 0:14:04.080
<v Speaker 11>We got that question a lot. Now we know it

0:14:04.240 --> 0:14:05.080
<v Speaker 11>wasn't a positive.

0:14:05.200 --> 0:14:08.240
<v Speaker 10>Customers did come and stay with Brax and that also

0:14:08.320 --> 0:14:09.840
<v Speaker 10>drove a lot of growth for the company.

0:14:10.679 --> 0:14:12.280
<v Speaker 4>You know, Caroline, I think you and I will never

0:14:12.320 --> 0:14:15.760
<v Speaker 4>forget that Friday where the SVB story unfolded.

0:14:15.760 --> 0:14:17.880
<v Speaker 3>We did that special program.

0:14:17.480 --> 0:14:21.640
<v Speaker 4>But we learned so much about how startups manage their finances,

0:14:21.680 --> 0:14:24.320
<v Speaker 4>the type of funding that they seek beyond just raising

0:14:24.360 --> 0:14:25.440
<v Speaker 4>capital from vcs.

0:14:25.720 --> 0:14:28.640
<v Speaker 2>And what was interesting was Silicon Valley Bank was so

0:14:28.800 --> 0:14:32.040
<v Speaker 2>intertwined with the startup sector because not only was it

0:14:32.080 --> 0:14:37.000
<v Speaker 2>offering lending, but offering menu ways, venture, debt and enriquey.

0:14:37.000 --> 0:14:39.400
<v Speaker 2>That's an area that you've been working in as well.

0:14:39.480 --> 0:14:42.640
<v Speaker 2>How much are you seeing startups getting into cash burn

0:14:42.760 --> 0:14:46.120
<v Speaker 2>needing to get further money to deploy but don't want

0:14:46.120 --> 0:14:48.920
<v Speaker 2>to raise equity? Is venture that's still a big They're

0:14:48.920 --> 0:14:49.640
<v Speaker 2>part of your business.

0:14:50.360 --> 0:14:52.440
<v Speaker 10>I would say that vengjur Donna is a very small

0:14:52.480 --> 0:14:55.480
<v Speaker 10>part of you know, it's definitely an experiment that we

0:14:55.560 --> 0:14:57.480
<v Speaker 10>try it and continue to do it in small amounts,

0:14:57.520 --> 0:15:00.520
<v Speaker 10>but it's not mainly why customers come to us. The

0:15:00.560 --> 0:15:04.000
<v Speaker 10>main way our business account customers come to us is

0:15:04.160 --> 0:15:08.360
<v Speaker 10>because of their operational banking, so running payroll wires, they

0:15:08.840 --> 0:15:11.080
<v Speaker 10>ch checks, making their kind of day to day banking.

0:15:11.280 --> 0:15:12.280
<v Speaker 11>It's a lot of startups.

0:15:12.280 --> 0:15:13.920
<v Speaker 10>They keep up a lot of their funds in some

0:15:14.000 --> 0:15:16.760
<v Speaker 10>of the big banks, but they keep you know, one, two, three,

0:15:16.840 --> 0:15:19.240
<v Speaker 10>four months of money with us to be their day

0:15:19.280 --> 0:15:21.360
<v Speaker 10>to day partner that really understands them.

0:15:21.920 --> 0:15:24.760
<v Speaker 2>And where are these companies coming from. You're obviously focused

0:15:24.800 --> 0:15:29.320
<v Speaker 2>on allowing these companies to be global, to travel, to grow,

0:15:29.640 --> 0:15:32.360
<v Speaker 2>but are they largely US based companies? Are you seeing

0:15:32.360 --> 0:15:34.080
<v Speaker 2>this becoming much more of an international play?

0:15:34.960 --> 0:15:36.840
<v Speaker 11>These are a lot of them are global companies.

0:15:36.840 --> 0:15:39.400
<v Speaker 10>So over fifty percent of the companies that we serve

0:15:40.120 --> 0:15:41.280
<v Speaker 10>have global employees.

0:15:41.840 --> 0:15:43.320
<v Speaker 11>All of them have US employees.

0:15:43.360 --> 0:15:45.400
<v Speaker 10>We only serve you if you have some sort of

0:15:45.560 --> 0:15:49.480
<v Speaker 10>US operation for a bunch of regulatory reasons. But a

0:15:49.520 --> 0:15:52.720
<v Speaker 10>lot of them are global companies and we serve as

0:15:52.720 --> 0:15:55.880
<v Speaker 10>I said, from startups just were born to you know,

0:15:56.000 --> 0:15:59.080
<v Speaker 10>customers that were from SEB also to kind of like

0:15:59.200 --> 0:16:02.000
<v Speaker 10>larger enterprise is like indeed, door adacting point base.

0:16:02.360 --> 0:16:04.960
<v Speaker 2>I have a sninky suspicion as a few more AI

0:16:05.080 --> 0:16:08.520
<v Speaker 2>players looking to bank or being born at the moment

0:16:08.600 --> 0:16:11.800
<v Speaker 2>and Ed I mean every day with discussing the exuberance

0:16:11.840 --> 0:16:12.280
<v Speaker 2>around that.

0:16:13.200 --> 0:16:15.640
<v Speaker 4>Yeah, it reflects the conversation we had twenty four hours ago, right,

0:16:15.760 --> 0:16:18.760
<v Speaker 4>Rex Salisbury. It's about what AI can do for existing

0:16:18.800 --> 0:16:22.480
<v Speaker 4>fintech players And I guess, Enrica, that's my question for you.

0:16:22.880 --> 0:16:25.400
<v Speaker 4>How is AI going to boost your offering? Where are

0:16:25.440 --> 0:16:28.680
<v Speaker 4>you investing to jump on the bandwagon, so to speak.

0:16:29.200 --> 0:16:32.520
<v Speaker 10>I think AI is going to completely transform our industry.

0:16:33.520 --> 0:16:36.320
<v Speaker 10>And I would say there's a couple different places.

0:16:36.360 --> 0:16:36.520
<v Speaker 11>Right.

0:16:36.520 --> 0:16:39.240
<v Speaker 10>You can think about it something the employee experience. How

0:16:39.240 --> 0:16:41.200
<v Speaker 10>can you make it even easier for employee to do

0:16:41.240 --> 0:16:43.120
<v Speaker 10>their expenses or not have to do them at all,

0:16:43.200 --> 0:16:45.960
<v Speaker 10>you know, make all of that automated. We also announced

0:16:46.000 --> 0:16:48.840
<v Speaker 10>earlier this year kind of like you know, a CFO

0:16:48.960 --> 0:16:52.200
<v Speaker 10>for everyone where if anyone has any questions, you know,

0:16:52.200 --> 0:16:55.320
<v Speaker 10>you can just ask this chatbot and they will respond

0:16:55.320 --> 0:16:57.120
<v Speaker 10>to you, so you don't have to waste the finance

0:16:57.120 --> 0:16:59.400
<v Speaker 10>team time of questions. They already know the answer to

0:17:00.040 --> 0:17:02.680
<v Speaker 10>all the way to like accounting and operations. I think

0:17:02.720 --> 0:17:06.240
<v Speaker 10>it's going to completely revolutionize and transform our industry.

0:17:06.240 --> 0:17:10.000
<v Speaker 11>And we're investing very, very heavily into the.

0:17:10.000 --> 0:17:14.440
<v Speaker 10>Development of new capabilities, and you know, I think we're

0:17:15.080 --> 0:17:16.959
<v Speaker 10>over the next few months you'll see a lot of

0:17:17.400 --> 0:17:18.800
<v Speaker 10>very innovative things coming out.

0:17:18.680 --> 0:17:23.480
<v Speaker 12>Of Rex Henrique. When does Brex go public? We don't

0:17:23.480 --> 0:17:26.160
<v Speaker 12>have a timeline yet. We're not against being a public company,

0:17:26.480 --> 0:17:28.960
<v Speaker 12>you know, in any shape or form.

0:17:29.000 --> 0:17:30.760
<v Speaker 10>That being said, I would love to be a low

0:17:30.840 --> 0:17:34.320
<v Speaker 10>volatility public company. We're not yet profitable, so we'll probably

0:17:34.320 --> 0:17:37.480
<v Speaker 10>wait for that to happen before we go public. Other

0:17:37.520 --> 0:17:39.560
<v Speaker 10>things to remember is we're a six year old company.

0:17:39.560 --> 0:17:42.560
<v Speaker 10>We were started in twenty seventeen, so I would say,

0:17:42.600 --> 0:17:45.200
<v Speaker 10>you know, don't we don't have any pressure to go public. Yes,

0:17:45.520 --> 0:17:47.480
<v Speaker 10>we're still quite young for a startup.

0:17:47.320 --> 0:17:49.240
<v Speaker 2>And we understand you don't have any pressure to raise

0:17:49.320 --> 0:17:53.680
<v Speaker 2>new bench capital yourself. I'm interested though, where you are

0:17:53.680 --> 0:17:58.240
<v Speaker 2>in terms of the focus on being profitable, being CAPEX

0:17:58.720 --> 0:18:01.119
<v Speaker 2>positive and all this sort of good stuff. You still

0:18:01.160 --> 0:18:03.439
<v Speaker 2>trying to hire because you seem to be talk about

0:18:03.520 --> 0:18:07.120
<v Speaker 2>developing leaning into AI. How are you managing those costs?

0:18:07.800 --> 0:18:11.359
<v Speaker 10>Yeah, I would say that, you know, we're still investing

0:18:11.400 --> 0:18:14.960
<v Speaker 10>a lot in one our go to market organization because

0:18:14.960 --> 0:18:17.560
<v Speaker 10>the product is having so much traction that you know,

0:18:17.640 --> 0:18:19.720
<v Speaker 10>I think it is higher or y for us to

0:18:19.760 --> 0:18:23.040
<v Speaker 10>invest in sales and marketing to acquire you know, more

0:18:23.080 --> 0:18:25.680
<v Speaker 10>customers faster. So we are investing there and our investors

0:18:25.680 --> 0:18:28.280
<v Speaker 10>are really excited about it. And then in the second area,

0:18:28.280 --> 0:18:30.000
<v Speaker 10>as are. I do believe this is going to be

0:18:30.080 --> 0:18:34.919
<v Speaker 10>transformation on a step function change. So I think if

0:18:35.400 --> 0:18:37.439
<v Speaker 10>you know, if you're a company and you're not willing

0:18:37.440 --> 0:18:39.960
<v Speaker 10>to invest in AI, you know, you're probably missing the.

0:18:39.960 --> 0:18:41.160
<v Speaker 11>Next big shift.

0:18:41.200 --> 0:18:43.040
<v Speaker 10>That being said, we do have a good business of

0:18:43.119 --> 0:18:45.240
<v Speaker 10>a good business model. I think we can we have

0:18:45.320 --> 0:18:47.840
<v Speaker 10>a plan to being you know, cashul positive without raising

0:18:47.840 --> 0:18:48.520
<v Speaker 10>any more money.

0:18:49.280 --> 0:18:51.640
<v Speaker 2>Ry kay, great test in time with you again, Thank you.

0:18:51.800 --> 0:18:55.359
<v Speaker 2>Enrique Ubrogress is the bex Coach CEO. Meanwhile, coming up,

0:18:55.480 --> 0:18:57.960
<v Speaker 2>we're going to talk about a guest the email master

0:18:58.040 --> 0:19:01.040
<v Speaker 2>tests the CEO's been making the rounds Beijing. More on

0:19:01.080 --> 0:19:03.399
<v Speaker 2>who he met with and any projects that he's mulling.

0:19:03.520 --> 0:19:06.080
<v Speaker 2>That's next. Meanwhile, we've got to remember we've still got

0:19:06.119 --> 0:19:09.679
<v Speaker 2>earnings coming dripping through the system salesforce. Investor is going

0:19:09.720 --> 0:19:11.920
<v Speaker 2>to be watching that one closely today after the Bell

0:19:12.000 --> 0:19:15.720
<v Speaker 2>Company gonna update us on its own cost cutting campaign. Look,

0:19:15.760 --> 0:19:17.119
<v Speaker 2>how is it going to provide us with the long

0:19:17.200 --> 0:19:20.080
<v Speaker 2>run revenue goals that it's set itself. This is Bloomberg.

0:19:39.320 --> 0:19:41.600
<v Speaker 2>It's time now for talking tech. First up iPhone maker

0:19:41.600 --> 0:19:44.679
<v Speaker 2>fox Con Technology says it expects to more than double

0:19:44.720 --> 0:19:46.879
<v Speaker 2>its revenue in the second half of the year thanks

0:19:46.880 --> 0:19:49.880
<v Speaker 2>in large part two sales and guess what, artificial intelligence

0:19:50.000 --> 0:19:52.639
<v Speaker 2>and the servers thereof. It's part of a move to

0:19:52.680 --> 0:19:55.439
<v Speaker 2>generate revenue from other fields such as electric cars and

0:19:55.480 --> 0:19:58.120
<v Speaker 2>AI on high that's the listed vehicle for fox Con

0:19:58.160 --> 0:20:02.639
<v Speaker 2>Technology also working with Nvidia on autonomous driving applications, and

0:20:02.760 --> 0:20:05.399
<v Speaker 2>Baidu is looking to beef up China's AIC and the

0:20:05.440 --> 0:20:08.040
<v Speaker 2>internet company has set aside roughly one hundred and forty

0:20:08.080 --> 0:20:11.480
<v Speaker 2>million dollars to fund Chinese startups. Has specialized in generative

0:20:11.480 --> 0:20:14.399
<v Speaker 2>AI by Doo and its VC partners will accept pitches

0:20:14.440 --> 0:20:17.560
<v Speaker 2>from prospective founders who will use its ernie bot to

0:20:17.600 --> 0:20:21.000
<v Speaker 2>build their own large language model before Baydu determines well

0:20:21.000 --> 0:20:24.200
<v Speaker 2>who gets the seed funding. Plus day two of Youla

0:20:24.280 --> 0:20:27.440
<v Speaker 2>Musks visits China and he's already met with more government officials.

0:20:27.600 --> 0:20:29.679
<v Speaker 2>That's as he looks to bolster opportunities in the country.

0:20:29.760 --> 0:20:32.560
<v Speaker 2>Musk met earlier with China's Minister for Industry and Information

0:20:32.600 --> 0:20:35.560
<v Speaker 2>Technology and Scott by the Ministry of Commerce. He also

0:20:35.800 --> 0:20:38.760
<v Speaker 2>met with the head of the Battery Giant's ATL, sparking

0:20:38.800 --> 0:20:42.000
<v Speaker 2>rumors of potential collaboration, and Musk arrived in Beijing Tuesday,

0:20:42.280 --> 0:20:46.800
<v Speaker 2>where he met with Foreign Minister Quinn Gang. And I mean, overall,

0:20:46.880 --> 0:20:49.880
<v Speaker 2>this is a focus another CEO. We've heard from Mercedes,

0:20:49.920 --> 0:20:52.439
<v Speaker 2>We've heard from GM, We've heard from well Jamie Diamond,

0:20:52.440 --> 0:20:54.440
<v Speaker 2>really having to talk up that. Look, these are still

0:20:54.440 --> 0:20:57.040
<v Speaker 2>focused on Chinese despite some of the trade tensions, the

0:20:57.080 --> 0:20:57.800
<v Speaker 2>tech tensions.

0:20:58.440 --> 0:21:00.720
<v Speaker 4>Yeah, and in the statement issued by the Chinese government,

0:21:00.760 --> 0:21:03.080
<v Speaker 4>Elon Musk is quoted as saying that he is against

0:21:03.119 --> 0:21:06.720
<v Speaker 4>the decoupling from China. They'll continue to invest in China.

0:21:06.760 --> 0:21:10.119
<v Speaker 4>It's a really interesting two way situation. Fifty percent of

0:21:10.160 --> 0:21:13.600
<v Speaker 4>Tesla's output was in out of Shanghai globally last year.

0:21:14.119 --> 0:21:17.119
<v Speaker 4>And you know, the Chinese government have given Tesla the

0:21:17.160 --> 0:21:20.520
<v Speaker 4>freedom to operate there as an independent US company, which

0:21:20.520 --> 0:21:20.920
<v Speaker 4>is rare.

0:21:21.160 --> 0:21:23.880
<v Speaker 3>But again it's a chorus of names. As you point out, and.

0:21:24.000 --> 0:21:29.040
<v Speaker 2>Interesting that potential rumoring around the big battery maker, because

0:21:29.400 --> 0:21:32.199
<v Speaker 2>that's of course a big part of trying to have

0:21:32.280 --> 0:21:34.680
<v Speaker 2>supply chain in the US rather than depending on the

0:21:34.760 --> 0:21:36.200
<v Speaker 2>Chinese made goods.

0:21:36.680 --> 0:21:38.560
<v Speaker 4>Right well, when Ford announced that it was going to

0:21:38.600 --> 0:21:42.240
<v Speaker 4>make batteries in Michigan licensing Coatl Technology, there was a

0:21:42.240 --> 0:21:45.920
<v Speaker 4>big fallout, particularly from the Republican Party. That relationship really

0:21:45.920 --> 0:21:57.000
<v Speaker 4>closely watched. Welcome back to Bloomberg Technology. I med love

0:21:57.040 --> 0:21:58.040
<v Speaker 4>Vo in San Francisco.

0:21:58.160 --> 0:21:59.760
<v Speaker 2>I'm Caroline hid in New York. Let's check in on

0:21:59.800 --> 0:22:01.920
<v Speaker 2>these markets. Halfway through the show, halfway through the training

0:22:02.000 --> 0:22:04.560
<v Speaker 2>day therein and we're looking at slightly from lower and

0:22:04.600 --> 0:22:06.159
<v Speaker 2>now's that one hundred At the moment, we're off by

0:22:06.240 --> 0:22:09.639
<v Speaker 2>eight ten seven percent. Bit of a concern profit taking

0:22:09.680 --> 0:22:11.680
<v Speaker 2>call it after the massive run up that we've seen

0:22:11.720 --> 0:22:13.960
<v Speaker 2>in this particular benchmark, but also the warriors that basically

0:22:13.960 --> 0:22:15.840
<v Speaker 2>we're running too hot in the US. The Federal Reserve's

0:22:15.880 --> 0:22:18.440
<v Speaker 2>still going to have to tame the growth. The jolt

0:22:18.440 --> 0:22:20.960
<v Speaker 2>stata showing that people are still really hiring. We see

0:22:20.960 --> 0:22:22.560
<v Speaker 2>a little bit of movement in the two year yield

0:22:22.600 --> 0:22:24.320
<v Speaker 2>on the back of that data that came roaring through

0:22:24.320 --> 0:22:26.879
<v Speaker 2>but remember tepid growth coming from China in terms of

0:22:26.880 --> 0:22:30.119
<v Speaker 2>PMIS and manufacturing data there. Europe to interestingly taking the

0:22:30.119 --> 0:22:32.119
<v Speaker 2>window of the sales of bitcoin once again. We're actually

0:22:32.119 --> 0:22:33.679
<v Speaker 2>off by more than eight percent over the course of

0:22:33.720 --> 0:22:36.680
<v Speaker 2>this month, the worst month since when FTX collapsed. Let's

0:22:36.680 --> 0:22:38.480
<v Speaker 2>moving on and have a little look at what's happening

0:22:38.480 --> 0:22:40.399
<v Speaker 2>in terms of individual movers, because we do still have

0:22:40.440 --> 0:22:42.680
<v Speaker 2>earnings we used to have real news, but we also

0:22:42.760 --> 0:22:46.000
<v Speaker 2>have perhaps the first fall in Nvidia since it's waring

0:22:46.040 --> 0:22:48.440
<v Speaker 2>earnings that we saw last week. We're off by about

0:22:48.480 --> 0:22:50.480
<v Speaker 2>five percent, called it profit taking after it hit that

0:22:50.480 --> 0:22:53.320
<v Speaker 2>one trillion dollar mark. We also, though, see Intel on

0:22:53.359 --> 0:22:55.720
<v Speaker 2>the back seeing an uptick a more point three point

0:22:55.720 --> 0:22:57.879
<v Speaker 2>eight percent higher as we see the CFO speaking at

0:22:57.880 --> 0:23:00.879
<v Speaker 2>a td count event really discussing how maybe they're going

0:23:00.920 --> 0:23:02.240
<v Speaker 2>to manage to be at the top end of the

0:23:02.280 --> 0:23:05.400
<v Speaker 2>range when it comes to their forward looking guidance Packet enterprises,

0:23:05.440 --> 0:23:07.439
<v Speaker 2>though that disappoints on the back of its numbers ed

0:23:07.600 --> 0:23:10.560
<v Speaker 2>down by some seven percent. Are we worried about compute

0:23:10.600 --> 0:23:12.640
<v Speaker 2>spending at the moment. We are still in a very

0:23:12.640 --> 0:23:15.639
<v Speaker 2>difficult macroeconomic environment. We're going to remember that.

0:23:16.400 --> 0:23:19.360
<v Speaker 3>But AI is still a big factor in those markets.

0:23:19.400 --> 0:23:19.560
<v Speaker 11>Now.

0:23:19.560 --> 0:23:22.000
<v Speaker 4>The US and EU are meeting up this week at

0:23:22.000 --> 0:23:26.080
<v Speaker 4>the USU Trade and Technology Council gathering in Sweden, where

0:23:26.119 --> 0:23:29.639
<v Speaker 4>the EU is discussing plans to subject generative AI to

0:23:29.720 --> 0:23:30.480
<v Speaker 4>additional rules.

0:23:31.680 --> 0:23:34.320
<v Speaker 13>This is bigger than Europe. US is important, but it

0:23:34.400 --> 0:23:36.879
<v Speaker 13>is bigger than the US. But if the two of

0:23:36.960 --> 0:23:39.679
<v Speaker 13>us take the leads with close friends, I think we

0:23:39.720 --> 0:23:42.480
<v Speaker 13>can push something that will make us all much more

0:23:42.520 --> 0:23:45.680
<v Speaker 13>comfortable with the fact that generality of AI is now

0:23:45.760 --> 0:23:49.000
<v Speaker 13>in the world and is developing at amazing speed.

0:23:50.560 --> 0:23:54.520
<v Speaker 4>Meanwhile, Biden administration officials have been divided over how aggressively

0:23:54.600 --> 0:23:57.879
<v Speaker 4>new AI tools should be regulated, a dissonance that has

0:23:57.960 --> 0:24:01.320
<v Speaker 4>left the US without a coherent response to the EUS

0:24:01.680 --> 0:24:05.200
<v Speaker 4>proposals that it's bringing Bloombergs and eguiton to break it down.

0:24:05.240 --> 0:24:07.440
<v Speaker 4>And I thought we were in a place where the

0:24:07.560 --> 0:24:10.320
<v Speaker 4>US and EU were on the same page. You regulate

0:24:10.400 --> 0:24:14.840
<v Speaker 4>the use case the tool rather than the underlying technology itself.

0:24:14.840 --> 0:24:15.680
<v Speaker 3>Where have we gone wrong?

0:24:16.680 --> 0:24:18.320
<v Speaker 1>Well, we were kind of on the same page, you know.

0:24:18.440 --> 0:24:21.200
<v Speaker 14>The last TTC meeting came out with this joint roadmap

0:24:21.240 --> 0:24:24.280
<v Speaker 14>that kind of agreed to pursue this risk based approach,

0:24:24.359 --> 0:24:27.240
<v Speaker 14>like you said, focusing on the use of the technology

0:24:27.560 --> 0:24:30.600
<v Speaker 14>rather than the development of the technology. So AI used

0:24:30.600 --> 0:24:33.679
<v Speaker 14>for things like critical infrastructure would be subject to higher

0:24:33.760 --> 0:24:37.880
<v Speaker 14>levels of compliance. Now Chat GPT changed everything, and that

0:24:38.000 --> 0:24:41.040
<v Speaker 14>really showed us how a general purpose AI product, you know,

0:24:41.080 --> 0:24:44.720
<v Speaker 14>something that's not inherently high risk, can become very risky

0:24:44.760 --> 0:24:46.639
<v Speaker 14>on a societal level when it's used by one hundreds

0:24:46.640 --> 0:24:49.560
<v Speaker 14>of millions people every month for everything from you know,

0:24:50.119 --> 0:24:53.560
<v Speaker 14>helping with homework to know more nefarious purposes. So that's

0:24:53.600 --> 0:24:56.560
<v Speaker 14>what policymakers are grappling right with right now, is how

0:24:56.560 --> 0:25:00.000
<v Speaker 14>to treat these generative AI products and how to class

0:25:00.040 --> 0:25:01.280
<v Speaker 14>sify the risk of those.

0:25:01.560 --> 0:25:04.920
<v Speaker 2>At the moment, though, Anna doesn't even really matter if

0:25:04.920 --> 0:25:08.160
<v Speaker 2>the US, for examples, and parts of the administration are divided,

0:25:08.280 --> 0:25:10.439
<v Speaker 2>because to me, it feels like the EU is going

0:25:10.480 --> 0:25:12.880
<v Speaker 2>to be the first mover here with the AI Act.

0:25:13.640 --> 0:25:16.560
<v Speaker 14>Well, and that's why the the EU's AI Act is

0:25:16.600 --> 0:25:19.640
<v Speaker 14>most important, is because US companies are going.

0:25:19.480 --> 0:25:21.040
<v Speaker 9>To have to comply with this if they want to

0:25:21.080 --> 0:25:21.919
<v Speaker 9>operate in Europe.

0:25:21.960 --> 0:25:25.320
<v Speaker 14>So much like the GDPR did for privacy, the AI

0:25:25.440 --> 0:25:28.879
<v Speaker 14>Act is going to set a defacto floor for compliance.

0:25:29.000 --> 0:25:31.800
<v Speaker 14>So that's what US companies are worried about is as

0:25:31.840 --> 0:25:36.320
<v Speaker 14>they develop these foundation models that underpin this generative AI technology,

0:25:36.600 --> 0:25:38.439
<v Speaker 14>if they want to operate in Europe, they're going to

0:25:38.480 --> 0:25:40.840
<v Speaker 14>have to comply with those rules, whether or not the

0:25:41.000 --> 0:25:43.840
<v Speaker 14>US has passed its own policy. And these companies are

0:25:43.840 --> 0:25:47.040
<v Speaker 14>really looking for a champion in the Biden administration to

0:25:47.119 --> 0:25:49.320
<v Speaker 14>go to the EU and say, listen, we don't think

0:25:49.359 --> 0:25:52.160
<v Speaker 14>this policy is going to work the way it's imagined

0:25:52.200 --> 0:25:56.520
<v Speaker 14>when it's implemented eventually. So the reason why it matters

0:25:56.520 --> 0:25:59.160
<v Speaker 14>if the Biden administration is divided is that these companies

0:25:59.400 --> 0:26:01.840
<v Speaker 14>don't have that champion. They don't have anyone going to

0:26:01.920 --> 0:26:05.720
<v Speaker 14>these multi latteral discussions and really expressing their point of view.

0:26:06.480 --> 0:26:08.760
<v Speaker 4>There was a time where we thought that Vice President

0:26:08.840 --> 0:26:11.560
<v Speaker 4>Kamala Harris was the champion, right she hosted that meeting

0:26:11.760 --> 0:26:16.720
<v Speaker 4>with Sam Altman's statues at Nadella. The administration has made

0:26:16.800 --> 0:26:20.000
<v Speaker 4>noises about they want to do something. But I'll go

0:26:20.080 --> 0:26:22.840
<v Speaker 4>back to one point you made policy. We haven't really

0:26:22.880 --> 0:26:26.880
<v Speaker 4>heard any arguments for I side of where to focus regulation,

0:26:26.920 --> 0:26:28.680
<v Speaker 4>particularly from this White House.

0:26:29.720 --> 0:26:32.320
<v Speaker 14>That's right, Well, I will give the administration credit for

0:26:32.640 --> 0:26:36.040
<v Speaker 14>putting forward some very well received frameworks. We have the

0:26:36.520 --> 0:26:39.480
<v Speaker 14>Risk Management Framework from the National Institute of Standards and

0:26:39.520 --> 0:26:42.199
<v Speaker 14>Technology that had a lot of input from industry, from

0:26:42.240 --> 0:26:44.800
<v Speaker 14>civil society as a very well thought out document. You

0:26:44.880 --> 0:26:48.399
<v Speaker 14>had the White House putting forth their Bill of Rights

0:26:48.440 --> 0:26:51.840
<v Speaker 14>for people who use AI products. But we don't have

0:26:52.040 --> 0:26:55.119
<v Speaker 14>binding policy in the United States, and that's because the

0:26:55.240 --> 0:26:59.600
<v Speaker 14>US Congress is just now starting to hold their initial

0:26:59.640 --> 0:27:02.520
<v Speaker 14>hearing to educate while makers and what AI even is.

0:27:02.960 --> 0:27:05.359
<v Speaker 14>So while the Biden administration has done a lot of

0:27:05.400 --> 0:27:10.120
<v Speaker 14>work to kind of set non binding guidelines, actually binding

0:27:10.200 --> 0:27:12.600
<v Speaker 14>regulation is going to come from Europe.

0:27:12.600 --> 0:27:16.000
<v Speaker 15>Once again, Anna Juton, I mean thank you giving us

0:27:16.359 --> 0:27:20.159
<v Speaker 15>well the global perception of AI risks, let's dive into

0:27:20.200 --> 0:27:22.720
<v Speaker 15>some of the perceptions here in the United States, because

0:27:22.960 --> 0:27:25.560
<v Speaker 15>there's been another open letter signed by a group of

0:27:25.560 --> 0:27:26.720
<v Speaker 15>industry leaders.

0:27:26.480 --> 0:27:30.520
<v Speaker 2>Warning of this time the risks of extinction due to

0:27:30.880 --> 0:27:33.040
<v Speaker 2>artificial intelligence. So it was published by the Center for

0:27:33.080 --> 0:27:34.200
<v Speaker 2>AI Safety.

0:27:34.119 --> 0:27:40.400
<v Speaker 16>Which has mission to reduce societal scale risks from artificial intelligence,

0:27:40.480 --> 0:27:42.240
<v Speaker 16>joining us now to deeper dive on all of this

0:27:42.320 --> 0:27:44.320
<v Speaker 16>and explain the center zone thinking.

0:27:44.440 --> 0:27:47.520
<v Speaker 2>This is Executive director Dan Hendrix it's great to have you.

0:27:48.200 --> 0:27:52.080
<v Speaker 2>Thank you, Dan. I'm just interested in how this first started,

0:27:52.240 --> 0:27:55.240
<v Speaker 2>this whole mission statement that you put out there about

0:27:55.440 --> 0:27:59.960
<v Speaker 2>summer mitigating the risks in line with potentially a nuclear

0:28:00.359 --> 0:28:04.760
<v Speaker 2>war or indeed a global pandemic. How did you have

0:28:04.880 --> 0:28:08.880
<v Speaker 2>first off conversations with Sam Altman and demis of deep Mind.

0:28:09.040 --> 0:28:12.600
<v Speaker 2>Do they come to you, you go to them.

0:28:13.040 --> 0:28:17.040
<v Speaker 17>So we created the letter largely because I knew that

0:28:17.119 --> 0:28:20.320
<v Speaker 17>many people had concerns that AI could lead to extinction

0:28:20.480 --> 0:28:22.720
<v Speaker 17>and that we should not just be treating it like

0:28:22.760 --> 0:28:25.760
<v Speaker 17>every other tech issue, but instead as a global priority.

0:28:26.280 --> 0:28:30.000
<v Speaker 17>So we created this letter to succinctly convey the shared concern,

0:28:30.280 --> 0:28:32.360
<v Speaker 17>and then we disseminated it among.

0:28:32.160 --> 0:28:34.600
<v Speaker 9>Some profits and from there it spread organically.

0:28:34.640 --> 0:28:37.840
<v Speaker 17>And so there are some surprises in that open Ai

0:28:38.080 --> 0:28:41.120
<v Speaker 17>signed it, Google, deep Mind signed it, Microsoft signed it,

0:28:41.120 --> 0:28:43.760
<v Speaker 17>as well as many of the scientists that built the

0:28:43.880 --> 0:28:46.360
<v Speaker 17>current wave of artificial intelligence.

0:28:47.440 --> 0:28:50.200
<v Speaker 2>What's interesting is I'm trying to understand also how you

0:28:50.240 --> 0:28:54.400
<v Speaker 2>were born as a center for AI safety, you funded

0:28:54.440 --> 0:28:57.360
<v Speaker 2>by any of these businesses. What is the ultimate way

0:28:57.400 --> 0:28:59.960
<v Speaker 2>in which you continued to deliver and do your research.

0:29:02.280 --> 0:29:05.560
<v Speaker 17>So we started, we started a while ago and We're

0:29:05.640 --> 0:29:08.880
<v Speaker 17>largely funded by a philansphy. We're not funded by Elon

0:29:09.000 --> 0:29:12.240
<v Speaker 17>Musk or things like that. So we're just trying to

0:29:12.360 --> 0:29:15.640
<v Speaker 17>reduce the risks from AI. I've been when I was

0:29:16.240 --> 0:29:19.719
<v Speaker 17>as a graduate student at Berkeley, I'd been researching safety

0:29:19.720 --> 0:29:21.680
<v Speaker 17>for a very long time, So this has been a

0:29:21.760 --> 0:29:24.960
<v Speaker 17>concern that I've had for many years. And now finally

0:29:25.200 --> 0:29:27.880
<v Speaker 17>the AI technologies are getting to the point where it's

0:29:27.880 --> 0:29:30.680
<v Speaker 17>becoming a lot more obvious to the scientific community that

0:29:30.760 --> 0:29:33.520
<v Speaker 17>this is a large concern. A letter like this probably

0:29:33.520 --> 0:29:36.000
<v Speaker 17>could not have existed six months ago, but given the

0:29:36.080 --> 0:29:39.280
<v Speaker 17>rapid developments, a lot of people are changing their minds,

0:29:39.280 --> 0:29:41.160
<v Speaker 17>a lot of experts are changing their minds of just

0:29:41.200 --> 0:29:43.560
<v Speaker 17>about how severe the risks can be done.

0:29:43.560 --> 0:29:46.080
<v Speaker 4>I actually want to go back to Caroline's previous question quickly.

0:29:46.120 --> 0:29:49.840
<v Speaker 4>Have you taken money from any AI executives that were

0:29:49.880 --> 0:29:54.280
<v Speaker 4>signatories to that letter? The previous letter basically key names

0:29:54.720 --> 0:29:55.680
<v Speaker 4>in the field of AI.

0:29:57.280 --> 0:30:02.000
<v Speaker 17>There, I'd have to check if we're having any funding

0:30:02.040 --> 0:30:04.720
<v Speaker 17>from any employees that are also concerned about safety.

0:30:04.760 --> 0:30:06.920
<v Speaker 9>The AI community is particularly large.

0:30:07.200 --> 0:30:09.960
<v Speaker 17>Ninety plus percent of our funding is from Open Philanthropy,

0:30:10.040 --> 0:30:11.840
<v Speaker 17>which is an independent.

0:30:11.360 --> 0:30:15.800
<v Speaker 4>Philanthropy One question that arose quite quickly when you put

0:30:15.840 --> 0:30:19.280
<v Speaker 4>out the statement twenty four hours ago, is the rationale

0:30:19.360 --> 0:30:22.360
<v Speaker 4>or motivations behind the signatories?

0:30:22.520 --> 0:30:23.680
<v Speaker 3>Why are they doing this?

0:30:24.040 --> 0:30:27.760
<v Speaker 4>I get it there's a long term, broad concern about

0:30:27.800 --> 0:30:31.400
<v Speaker 4>the risks from AI. But why do you think these

0:30:31.560 --> 0:30:35.320
<v Speaker 4>leading names who want the field to advance signed the

0:30:35.440 --> 0:30:36.600
<v Speaker 4>letter that you organized.

0:30:38.120 --> 0:30:40.960
<v Speaker 17>Well, so many of them were on the voter. We

0:30:41.000 --> 0:30:43.560
<v Speaker 17>get out a move as quickly as possible. Developing I

0:30:43.600 --> 0:30:46.040
<v Speaker 17>will be a generally good thing, But a lot of

0:30:46.080 --> 0:30:49.520
<v Speaker 17>the scientists who signed this have recently changed their tune.

0:30:49.560 --> 0:30:54.280
<v Speaker 17>Jeff Hinton, of course helped create artificial intelligence modern artificial intelligence,

0:30:54.320 --> 0:30:57.600
<v Speaker 17>so did Yashchu A Benjio. But in recent months now

0:30:57.600 --> 0:31:01.400
<v Speaker 17>they're substantially more concerned about there being rogue behavior, that

0:31:01.480 --> 0:31:05.800
<v Speaker 17>these AIS could potentially lead to human extinction as they.

0:31:05.720 --> 0:31:06.600
<v Speaker 9>Get more advanced.

0:31:07.160 --> 0:31:10.960
<v Speaker 17>So for that reason, I think that it's just because

0:31:11.000 --> 0:31:13.880
<v Speaker 17>people are starting to see that this is moving extremely quickly.

0:31:13.960 --> 0:31:17.120
<v Speaker 17>We don't understand how these technologies work. It's difficult to

0:31:17.120 --> 0:31:20.320
<v Speaker 17>steer them, and so that could potentially.

0:31:19.960 --> 0:31:21.000
<v Speaker 9>They could be misused.

0:31:21.280 --> 0:31:25.000
<v Speaker 17>Those things could potentially lead to catastrophic risks or potentially,

0:31:25.040 --> 0:31:26.800
<v Speaker 17>in the longer term extinction.

0:31:27.920 --> 0:31:28.480
<v Speaker 3>Very quickly.

0:31:28.520 --> 0:31:30.520
<v Speaker 4>In response to your letter, there were those that know

0:31:31.320 --> 0:31:34.760
<v Speaker 4>present and much more near term basic risks have listened

0:31:34.800 --> 0:31:37.480
<v Speaker 4>to SASHALUCCIONI of hugging face you joined us yesterday.

0:31:38.880 --> 0:31:41.120
<v Speaker 18>I personally see it a bit as a magic trick,

0:31:41.200 --> 0:31:46.520
<v Speaker 18>as misdirection right. I care very very strongly about, for example,

0:31:47.120 --> 0:31:52.720
<v Speaker 18>data consent, for example, disclosing data sources, disclosing transparency and

0:31:52.720 --> 0:31:56.520
<v Speaker 18>model documentation. And instead of focusing on that we're being

0:31:56.600 --> 0:32:00.200
<v Speaker 18>directed towards these unsolvable risks.

0:32:01.040 --> 0:32:03.680
<v Speaker 4>Are we paying enough attention to more near term and

0:32:03.720 --> 0:32:05.040
<v Speaker 4>immediate risks from AI.

0:32:05.840 --> 0:32:08.160
<v Speaker 17>I should certainly hope that the risk of extinction is

0:32:08.200 --> 0:32:11.280
<v Speaker 17>not unsolvable, or else we're in big trouble. So I

0:32:11.320 --> 0:32:15.360
<v Speaker 17>think it's important as a society to manage multiple different risks.

0:32:15.520 --> 0:32:16.880
<v Speaker 9>I think we can certainly do it.

0:32:17.600 --> 0:32:20.240
<v Speaker 17>I also think that many of the risks from that

0:32:20.520 --> 0:32:24.040
<v Speaker 17>currently affect us can take on more extreme forms later on.

0:32:24.320 --> 0:32:27.920
<v Speaker 17>For instance, if the people developing these AI technologies have

0:32:28.000 --> 0:32:31.560
<v Speaker 17>decisive control over them, that gives them extremely high power

0:32:31.600 --> 0:32:34.560
<v Speaker 17>and power inequality with respect AI is a concern that

0:32:34.600 --> 0:32:37.520
<v Speaker 17>could potentially get out of control where a few people

0:32:37.560 --> 0:32:40.560
<v Speaker 17>are calling the shots in society. So I think that

0:32:40.600 --> 0:32:44.360
<v Speaker 17>it's important any competent form of risk management will address

0:32:45.240 --> 0:32:47.160
<v Speaker 17>current ongoing arms as well.

0:32:46.960 --> 0:32:49.400
<v Speaker 9>As tail risks. So I think we need to have

0:32:49.480 --> 0:32:50.680
<v Speaker 9>a complementary approach.

0:32:51.000 --> 0:32:56.440
<v Speaker 2>Yeah, and Hendricks, the outcome from this, You've certainly stirred

0:32:56.520 --> 0:32:59.880
<v Speaker 2>a lot of interest people, perhaps either aligning them to

0:33:00.280 --> 0:33:02.880
<v Speaker 2>thinking that this is too much or indeed that we

0:33:02.920 --> 0:33:05.480
<v Speaker 2>need to shine a light on this. How do you

0:33:05.520 --> 0:33:08.440
<v Speaker 2>think we ultimately take on these risks? You're very good

0:33:08.440 --> 0:33:11.600
<v Speaker 2>at highlighting what the risks are. Is it regulation, is

0:33:11.640 --> 0:33:14.160
<v Speaker 2>it self regulation? What do you think the outcome will be?

0:33:14.880 --> 0:33:17.840
<v Speaker 17>Well, I think that self regulation would be a useful start,

0:33:17.880 --> 0:33:21.560
<v Speaker 17>But we wouldn't trust something like a pandemic or nuclear

0:33:21.600 --> 0:33:24.920
<v Speaker 17>technology just to the scientists. We wouldn't say solve the

0:33:24.960 --> 0:33:27.240
<v Speaker 17>AI or the nuclear arms race scientists.

0:33:27.280 --> 0:33:29.440
<v Speaker 9>It's not necessarily completely their purview.

0:33:29.560 --> 0:33:31.640
<v Speaker 17>There are technical aspects to this problem, but there are

0:33:31.640 --> 0:33:34.120
<v Speaker 17>also social aspects to this problem. So we wanted to

0:33:34.160 --> 0:33:37.560
<v Speaker 17>just make sure that the public is aware that many

0:33:37.560 --> 0:33:40.120
<v Speaker 17>of the AI scientists, we have AI scientists from all

0:33:40.200 --> 0:33:42.760
<v Speaker 17>the top universities, and many of the people who created it.

0:33:42.760 --> 0:33:44.880
<v Speaker 9>Are concerned that it could even lead to extinction.

0:33:45.080 --> 0:33:48.720
<v Speaker 17>So then policy tends to be more of a negotiation process,

0:33:48.760 --> 0:33:52.200
<v Speaker 17>and so hopefully we can get those conversations started recognizing

0:33:52.200 --> 0:33:55.239
<v Speaker 17>that there are severe effects on the horizon, such as

0:33:55.360 --> 0:33:58.160
<v Speaker 17>potentially extinction. So I think we need to treat as

0:33:58.160 --> 0:34:00.000
<v Speaker 17>a global priority, and we need to work toward cold

0:34:00.120 --> 0:34:04.120
<v Speaker 17>operating domestically but also internationally so that we're not caught

0:34:04.160 --> 0:34:05.480
<v Speaker 17>in an AI arms.

0:34:05.280 --> 0:34:07.040
<v Speaker 9>Race between different countries.

0:34:07.360 --> 0:34:10.080
<v Speaker 17>The nuclear arms rate brought us to the brink of catastrophe,

0:34:10.280 --> 0:34:12.879
<v Speaker 17>and we don't want another arms race where we build

0:34:12.920 --> 0:34:16.160
<v Speaker 17>extremely powerful technologies that could potentially.

0:34:15.600 --> 0:34:18.439
<v Speaker 9>Destroy us all and we just keep stockpiling them.

0:34:18.760 --> 0:34:21.080
<v Speaker 17>That was not a good outcome for humanity that could

0:34:21.080 --> 0:34:23.680
<v Speaker 17>have gone substantially worse. I don't want the same to

0:34:23.680 --> 0:34:27.200
<v Speaker 17>happen with AI. So hopefully we can cooperate starting today.

0:34:27.480 --> 0:34:31.239
<v Speaker 2>Have you seen decent self regulation thus far on some

0:34:31.360 --> 0:34:35.080
<v Speaker 2>of the more near term, immediate societal damage we're seeing,

0:34:35.200 --> 0:34:38.680
<v Speaker 2>as many have referenced the bias already baked into some

0:34:38.719 --> 0:34:41.200
<v Speaker 2>of the data that it's being built upon, the worries

0:34:41.239 --> 0:34:44.120
<v Speaker 2>that the wrong people are being potentially stoped by police,

0:34:44.160 --> 0:34:48.000
<v Speaker 2>the worries that the wrong misinformation is already circulating. Have

0:34:48.080 --> 0:34:50.080
<v Speaker 2>you seen that tackle before we even get onto the

0:34:50.160 --> 0:34:53.200
<v Speaker 2>much larger and more significant concern that you have about extinction.

0:34:54.239 --> 0:34:55.719
<v Speaker 9>Yes, so I think we ought to be.

0:34:55.840 --> 0:34:58.520
<v Speaker 17>If we can't address many of those current risks, then

0:34:58.560 --> 0:35:00.759
<v Speaker 17>I don't have much help us addressing some of these

0:35:01.320 --> 0:35:02.440
<v Speaker 17>larger risks as well.

0:35:03.000 --> 0:35:03.880
<v Speaker 9>I should say.

0:35:03.640 --> 0:35:09.120
<v Speaker 17>That there's a bit of a mix in whether companies

0:35:09.200 --> 0:35:13.200
<v Speaker 17>have been successful at making their EI technologies safe. There's

0:35:13.800 --> 0:35:18.160
<v Speaker 17>some notable failures, like with Being's initial rollout where it

0:35:18.239 --> 0:35:22.640
<v Speaker 17>was threatening users, but some other technologies have been useful

0:35:22.920 --> 0:35:28.000
<v Speaker 17>in being relatively reliable and mitigating their amount of bias.

0:35:28.080 --> 0:35:32.200
<v Speaker 17>So there are fortunate signs that there's some progress being made.

0:35:32.320 --> 0:35:35.440
<v Speaker 17>I'm concerned though, that since the AI companies are competing

0:35:35.480 --> 0:35:37.960
<v Speaker 17>with each other and are locked in an arms race

0:35:38.080 --> 0:35:41.000
<v Speaker 17>with each other, that there won't be enough time for safety,

0:35:41.000 --> 0:35:46.200
<v Speaker 17>that they're going to prioritize development over safety, because if

0:35:46.239 --> 0:35:49.440
<v Speaker 17>they don't prioritize development and making it as powerful as

0:35:49.560 --> 0:35:52.759
<v Speaker 17>quickly as possible, then we won't be able to make

0:35:52.800 --> 0:35:55.319
<v Speaker 17>it safe and bring the risks down to a negligible level.

0:35:55.480 --> 0:35:58.880
<v Speaker 2>Is it a risk that by regulating, self regulating or

0:35:58.920 --> 0:36:02.080
<v Speaker 2>otherwise we start to stifle out the new competitors, the

0:36:02.120 --> 0:36:05.000
<v Speaker 2>smaller players, the academics that you're talking to within labs,

0:36:05.080 --> 0:36:07.600
<v Speaker 2>rather than the large players such as a being or

0:36:07.640 --> 0:36:09.319
<v Speaker 2>a bard or an open AI.

0:36:10.600 --> 0:36:13.920
<v Speaker 17>I think that, well, if we're concerned about academics, I

0:36:13.960 --> 0:36:16.600
<v Speaker 17>think that that would largely be the government to be

0:36:16.680 --> 0:36:19.640
<v Speaker 17>taken care of that. I think that we can definitely

0:36:19.680 --> 0:36:24.239
<v Speaker 17>target some of these catastrophic risks for models that are

0:36:24.280 --> 0:36:27.040
<v Speaker 17>at a certain level of capability. That seems like a

0:36:27.120 --> 0:36:32.400
<v Speaker 17>possible proposal. So we'll basically have to see with these negotiations.

0:36:32.520 --> 0:36:35.480
<v Speaker 17>I'm largely just pushing for us and initiating this process

0:36:35.560 --> 0:36:40.440
<v Speaker 17>and trying to have broader societal cooperation, including international cooperation

0:36:40.560 --> 0:36:41.240
<v Speaker 17>on these issues.

0:36:41.719 --> 0:36:46.279
<v Speaker 4>Dan, how does the public reconcile that the signatories to

0:36:46.360 --> 0:36:49.800
<v Speaker 4>your petition, your initiative were the leaders in the field

0:36:49.800 --> 0:36:53.719
<v Speaker 4>of AI, the AI evangelists for want of a better expression,

0:36:53.719 --> 0:36:57.319
<v Speaker 4>who are now apparently the AI doomers. How have we

0:36:57.680 --> 0:37:01.040
<v Speaker 4>moved so quickly from leadership to cann in that field.

0:37:01.560 --> 0:37:03.759
<v Speaker 17>I think that this is a natural part in any

0:37:03.840 --> 0:37:07.680
<v Speaker 17>industry where initially it's move fast and break things, be

0:37:07.880 --> 0:37:11.040
<v Speaker 17>risk seeking, tinker, throw stuff at the wall, see what sticks.

0:37:11.160 --> 0:37:13.120
<v Speaker 17>But then we start shifting over to a more risk

0:37:13.120 --> 0:37:16.880
<v Speaker 17>averse regime when the technology starts affecting society on a

0:37:16.960 --> 0:37:20.560
<v Speaker 17>larger scale. Now people are actually using these AI technologies,

0:37:20.600 --> 0:37:22.920
<v Speaker 17>and so we ought to be substantially more cautious with

0:37:22.960 --> 0:37:25.840
<v Speaker 17>their potential outcomes as well. It's getting a lot closer

0:37:25.920 --> 0:37:29.640
<v Speaker 17>to human level intelligence. So earlier two years ago, they

0:37:29.760 --> 0:37:32.920
<v Speaker 17>really weren't intelligent at all. But it's quite conceivable that

0:37:32.960 --> 0:37:36.080
<v Speaker 17>in the next few years that in many cognitive domains

0:37:36.080 --> 0:37:38.680
<v Speaker 17>we have AIS that are as good as us or better.

0:37:38.960 --> 0:37:40.120
<v Speaker 9>So I think that's one.

0:37:40.000 --> 0:37:43.520
<v Speaker 17>Of the main things shifting this underlying change in tone,

0:37:43.719 --> 0:37:46.440
<v Speaker 17>Because this air arms race is making it move so quickly,

0:37:46.880 --> 0:37:50.000
<v Speaker 17>people are starting to think we need to rethink our priorities.

0:37:50.440 --> 0:37:54.480
<v Speaker 4>Center for AI Safety Executive and research director Dan Hendrix,

0:37:54.560 --> 0:37:57.480
<v Speaker 4>thank you for your time now. Elizabeth Holmes turned herself

0:37:57.520 --> 0:38:00.440
<v Speaker 4>in at a minimum security prison in Texas, yes today

0:38:00.680 --> 0:38:04.200
<v Speaker 4>to begin her eleven year, three month sentence. The disgraced

0:38:04.200 --> 0:38:07.400
<v Speaker 4>tech founder had been convicted of defrauding investors at her

0:38:07.400 --> 0:38:10.720
<v Speaker 4>failed blood testing startup Pharrhos, and she and her former

0:38:10.760 --> 0:38:14.480
<v Speaker 4>business partner Ramesh Bahwani must together pay four hundred and

0:38:14.520 --> 0:38:18.239
<v Speaker 4>fifty two million dollars in restitution to investors.

0:38:18.360 --> 0:38:21.920
<v Speaker 2>Cara, Well, let's get back to it, ed, because we've

0:38:21.920 --> 0:38:24.239
<v Speaker 2>got more to discuss on artificial intelligence, if you can

0:38:24.320 --> 0:38:25.680
<v Speaker 2>believe it. But we're going to talk about it on

0:38:25.719 --> 0:38:28.200
<v Speaker 2>Wall Street. How hedge funds are actually dipping their toes

0:38:28.239 --> 0:38:31.120
<v Speaker 2>into the pool of AI tools to handle all the

0:38:31.120 --> 0:38:33.839
<v Speaker 2>boring stuff the grant work or on that next there's

0:38:33.840 --> 0:38:52.799
<v Speaker 2>a Bloomberg Wall Street. It's already filled with quants with

0:38:52.840 --> 0:38:55.920
<v Speaker 2>computer wizards. But because not stopping hedge funds from utilizing

0:38:55.960 --> 0:38:59.319
<v Speaker 2>the powers of CHATCHBT for the basics, be better to

0:38:59.320 --> 0:39:02.320
<v Speaker 2>discuss all of this reg news Will Street repolitician atibaseconds.

0:39:02.360 --> 0:39:05.759
<v Speaker 2>So what is it, junior hedge funds analysts?

0:39:05.960 --> 0:39:06.240
<v Speaker 9>Really?

0:39:06.560 --> 0:39:09.120
<v Speaker 2>Allelujah? You don't have to do the basics the grumble

0:39:09.120 --> 0:39:09.520
<v Speaker 2>work here.

0:39:09.680 --> 0:39:11.400
<v Speaker 19>Yeah, there's a reason that it only really works for

0:39:11.440 --> 0:39:13.960
<v Speaker 19>the basics. I don't normally like to use personal examples,

0:39:14.000 --> 0:39:16.279
<v Speaker 19>but I had gotten my degree in quant finance and

0:39:16.360 --> 0:39:19.200
<v Speaker 19>down over at NYU for the NBA program. What they

0:39:19.200 --> 0:39:21.680
<v Speaker 19>do is they take all the students, they have them

0:39:21.880 --> 0:39:24.640
<v Speaker 19>run through all this data. They put it through code

0:39:24.680 --> 0:39:27.480
<v Speaker 19>under different market scenarios, and what they show you is

0:39:27.520 --> 0:39:30.760
<v Speaker 19>that the code the models don't always work.

0:39:31.080 --> 0:39:32.640
<v Speaker 1>The point here being is two things.

0:39:32.680 --> 0:39:36.000
<v Speaker 19>Once, sometimes the data doesn't work, sometimes it's just wrong,

0:39:36.040 --> 0:39:39.319
<v Speaker 19>and the other times the market is just unpredictable. It's

0:39:39.360 --> 0:39:41.799
<v Speaker 19>why there's limitations to how chat GBT.

0:39:41.520 --> 0:39:43.960
<v Speaker 1>Could be used. But Caroline, there are things about.

0:39:43.760 --> 0:39:47.759
<v Speaker 19>Chat GBT that make this kind of rendition of quantitative

0:39:47.760 --> 0:39:51.360
<v Speaker 19>finance different than before, and that is natural language processing

0:39:51.440 --> 0:39:54.640
<v Speaker 19>generated AI that I'll make it easier to read company.

0:39:54.320 --> 0:39:56.360
<v Speaker 1>Reports, research reports.

0:39:56.239 --> 0:40:00.799
<v Speaker 19>News filings, and even company transcripts to hopefully make it

0:40:00.800 --> 0:40:04.640
<v Speaker 19>easier to purse through investing signs down to a third

0:40:04.760 --> 0:40:07.560
<v Speaker 19>minutes to get signals on how devish or hark is

0:40:07.680 --> 0:40:08.120
<v Speaker 19>something is.

0:40:08.320 --> 0:40:11.360
<v Speaker 2>So it feels for now it's about productivity and workflow

0:40:11.480 --> 0:40:13.480
<v Speaker 2>rather than perhaps getting an edge when actually comes to

0:40:13.520 --> 0:40:16.719
<v Speaker 2>your investing. Shenani bassa short sweep but always to the point.

0:40:16.760 --> 0:40:26.480
<v Speaker 2>We love it. And what is going viral? It's the

0:40:26.480 --> 0:40:30.640
<v Speaker 2>finale z ed of Succession and Ted Lasso Warner Brothers Discovery,

0:40:30.680 --> 0:40:33.320
<v Speaker 2>which calls owns HBO. It's so close to three million

0:40:33.320 --> 0:40:36.120
<v Speaker 2>people watch the Succession finale on TV and it's streaming

0:40:36.120 --> 0:40:39.320
<v Speaker 2>app HBO Max. In the US sixty eight percent improvement

0:40:39.360 --> 0:40:41.800
<v Speaker 2>over the last episode of season three, according to the company,

0:40:42.160 --> 0:40:44.680
<v Speaker 2>And meanwhile, it's the top trending topic on Google Trends.

0:40:44.719 --> 0:40:48.120
<v Speaker 2>Ted Lasso's own finale Tealasa has been born a boon,

0:40:48.200 --> 0:40:50.880
<v Speaker 2>of course, to Apple TV, breaking into the Nielsen weekly

0:40:50.920 --> 0:40:53.360
<v Speaker 2>streaming ranking in sixth place during the last week at

0:40:53.360 --> 0:40:56.680
<v Speaker 2>April with this third and last season. Meanwhile, though our

0:40:56.680 --> 0:40:58.719
<v Speaker 2>Brits aren't watching it much.

0:40:58.520 --> 0:40:59.480
<v Speaker 3>Right, it's unbelievable.

0:40:59.480 --> 0:41:02.560
<v Speaker 4>I mean, Apple doesn't disclose numbers, but it's all everyone's

0:41:02.600 --> 0:41:05.799
<v Speaker 4>talking about on social succession is on fin Twitch. Three

0:41:05.880 --> 0:41:07.680
<v Speaker 4>million doesn't seem like a lot in a country of

0:41:07.760 --> 0:41:11.000
<v Speaker 4>three thirty three hundred and thirty million people, but as

0:41:11.040 --> 0:41:13.120
<v Speaker 4>you know, we're both big fans. That does it for

0:41:13.120 --> 0:41:16.520
<v Speaker 4>this edition. Kara of Bloomberg Technology, don't forget so much

0:41:16.560 --> 0:41:19.000
<v Speaker 4>to recap and what's been a short week packed with

0:41:19.120 --> 0:41:22.359
<v Speaker 4>news on our podcast, Apple, Spotify, iHeart, wherever you get

0:41:22.480 --> 0:41:25.080
<v Speaker 4>your podcast from New York and San Francisco.

0:41:25.680 --> 0:41:27.080
<v Speaker 3>This is Bloomberg