Speaker 1: From Mahart where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed Ludlow.
Speaker 2: And Caroline Heide a Bloomberg's weld headquarters in New York.
Speaker 2: Ed Ludlow He's off. This is bloomg Technology coming up.
Speaker 3: Paramount and Skydance reach a merger agreement after collapsing last month.
Speaker 3: For coverage ahead, plus Apple and open Ai deep in
Speaker 3: their relationship as the iPhone maker gets.
Speaker 2: An observer on the company's board.
Speaker 3: And we'll turn to the intersection of health and technology
Speaker 3: as we sit down with the CEO SENOFIE. But first
Speaker 3: quick check on these markets, because even without the play
Speaker 3: of Nvidia, we're managing to break new records. We're currently
Speaker 3: up three tenths of percent on the nastag up fifty
Speaker 3: nine points. You're looking at the tenure yield screeching down
Speaker 3: some nine points. Why will the bad news is good news?
Speaker 3: The economy is showing some signs of slow and when
Speaker 3: it comes to services, and indeed on those jobless claims
Speaker 3: we fall some nine basis points. As maybe the Fed
Speaker 3: can indeed start to cut for the rest of the year,
Speaker 3: the stock six hundred actually in Europe doing well seven
Speaker 3: tens percent higher. Of course, the day before the UK
Speaker 3: heads to the polls, the foot seat one of the
Speaker 3: only benchmarks seeing any sort of volume on the day.
Speaker 3: Let's move on and have a look at what's happening
Speaker 3: on the individual assets of choice. I'm looking at crypto
Speaker 3: Bitcoin under pressure by two point eight percent, six one
Speaker 3: hundred and fifty six.
Speaker 2: The line to look at fifty hundred and thirty five.
Speaker 2: What is that? You say, one hundred and eighty three
Speaker 2: daily moving average?
Speaker 3: Basically that is when we start to see more bearer
Speaker 3: signals from the rest of the year if we break
Speaker 3: below that. Move on to the individual stocks a choice
Speaker 3: and look, there's a lot to be keeping an eye
Speaker 3: on Tesla once again on the higher side, up more
Speaker 3: than five percent and raising this year's losses as we
Speaker 3: get deliveries that were better than expected but still falling.
Speaker 3: Amazon off by one and a half percent. Bezos, he's
Speaker 3: selling shares as we reached that record high yesterday. In
Speaker 3: paramount We're going to dig into this deal.
Speaker 2: Is there one? Can it last?
Speaker 3: Will Skidans finally manage to buy out show Redstone?
Speaker 2: We're up seven percent.
Speaker 3: But we've got some key political news for you, and
Speaker 3: before we get to all of the markets, who want
Speaker 3: to really understand what's haidling out of Washington. The New
Speaker 3: York Times, of course, has been reporting that President Biden
Speaker 3: has indeed told an ally that well, he's wondering whether
Speaker 3: to continue running for president, joining us some more as
Speaker 3: a host of Bloomberg's Wall Street Week, David Weston intimately
Speaker 3: understanding of the functioning of the White House and politics,
Speaker 3: and this does seem to be the first time we've
Speaker 3: heard from Biden's team at least that there's questions.
Speaker 4: Well, there's a New York Times report that a close
Speaker 4: ally said that, as you say, Carolyn, at the same time,
Speaker 4: we now have the White House itself as spokespun prison
Speaker 4: coming out and saying the President is not considering what's
Speaker 4: drawing from the race at all. But the report was
Speaker 4: actually a little more nuanced, I believe, which is, he
Speaker 4: knows that he's in trouble and he's going to have
Speaker 4: to do something to turn it around. Was more than
Speaker 4: gist of the report. Again, a true to this close ally,
Speaker 4: and that shouldn't come as a big surprise. I mean
Speaker 4: that the President understands as a problem. In fact, there
Speaker 4: were some Democrats who were trying to say, does he
Speaker 4: not get it, there's a problem. So now they're coming
Speaker 4: and saying, yes, I get it, there's a problem. The
Speaker 4: question is what can he do to turn this perception around?
Speaker 4: After that really unfortunate for him.
Speaker 3: Debate Katie Rogers doing the reporting over at the New
Speaker 3: York Times, and she articulates that there's a lot that
Speaker 3: we can hear from the president in the next few days.
Speaker 3: He has decided to go back out on the trail
Speaker 3: in a significant way and do other key interviews to
Speaker 3: try and prove that he's ready, willing and enable.
Speaker 4: Exactly right, Colin, I think that's the key thing, is
Speaker 4: the interviews. It's one thing to go out and give
Speaker 4: a scripted speech to a rally. I'm not sure that
Speaker 4: they believe that will really turn things around. But he
Speaker 4: has agreed to do a sit down interview with my
Speaker 4: old chop ABC News and George Stephanopolis, the close friend
Speaker 4: and colleague, to sit down, and I believe I'm speculating
Speaker 4: now that they decided we really need to go out
Speaker 4: and prove credibly that this person is up to the job.
Speaker 4: At this point, and they chose George I believe at
Speaker 4: least I'm prejudice because they thought he will be a
Speaker 4: tough interview and he'll put him through his paces, and
Speaker 4: then they can assess can the president dig himself out
Speaker 4: of this hole by a performance with someone like Georgetefanopolis
Speaker 4: in a one on one.
Speaker 3: Extended interview that last line in the story clear eyed,
Speaker 3: They said that he has an uphill battle to convince voters, donors,
Speaker 3: and indeed political class. We thank you for bringing us
Speaker 3: to your insight knowledge when it comes to ABC and
Speaker 3: indeed what's happening when it comes to debates in politics.
Speaker 2: David Weston there, we thank him.
Speaker 3: Look, markets, they are going to be affected by the
Speaker 3: presidential election, They're going to be affected by worldwide elections.
Speaker 3: In fact, let's bring in Melissa Otto, head of TMT
Speaker 3: Research and Visible Alpha.
Speaker 2: Look, we want to talk to you, Melissa.
Speaker 3: About whether you should be going along in video in
Speaker 3: this market, whether we should be getting more into this
Speaker 3: chip stocks, but just more macro perspective. Are you thinking
Speaker 3: about the presidential election? How does it affect your your research?
Speaker 5: Yeah, I would say that markets are terrible at discounting
Speaker 5: political risk in general. Ultimately, I think fundamentals are what
Speaker 5: drive starts, and there tends to be what we're focused on.
Speaker 3: It is notable that many feel whether it's a Biden
Speaker 3: or if it he's in binding, whether it's a dumb,
Speaker 3: cractical Republican president in the Weiss House, they will focus
Speaker 3: in on technology, they will continue to invest and it
Speaker 3: has all been about supply chains of late. Just tell
Speaker 3: us a little bit about well, where you've been looking
Speaker 3: from a chip perspective, how much you've been factoring in
Speaker 3: geopolitics to in video's ability to sell into China for example.
Speaker 5: Yeah, I would say it's a very interesting time right
Speaker 5: now for the broad AI landscape. I think the million
Speaker 5: dollar question that we're very focused on at the moment
Speaker 5: is what is ultimately going to drive broad adoption, what's
Speaker 5: going to get users around the world really fired up
Speaker 5: about generative AI, its capabilities, its ability to summarize, to
Speaker 5: save time, to make people more productive. And so there's
Speaker 5: two angles to this. One is a consumer angle and
Speaker 5: one is an enterprise angle, and it could be a
Speaker 5: hybrid of both. And I think this is the broad
Speaker 5: landscape that we're looking at.
Speaker 3: I think what's interesting is that what could really infuse
Speaker 3: our own use case is, of course Apple the partnership
Speaker 3: with open Ai. We're going to be debating that later
Speaker 3: in the show as to that board presence or board
Speaker 3: observation that Apple now has with open Ai. But to
Speaker 3: your point, where is the infrastructure investment still needed? Look,
Speaker 3: people are amazed that today we're still breaking new records
Speaker 3: even though Nvidia.
Speaker 2: Is trading to the downside.
Speaker 3: Have we seen all the value already accreted into these
Speaker 3: prices right now when it comes to the infrastructure, the
Speaker 3: picks and the shovels or more to go.
Speaker 5: It's hard to say. I mean, I mean, based based
Speaker 5: on the analysis that we have done, their expectations have
Speaker 5: come up significantly since December. We've seen in our estimates
Speaker 5: revisions of in the ballpark of two hundred billion dollars
Speaker 5: since last year. So, you know, I think we thought
Speaker 5: it looked a bit long in the tooth last December,
Speaker 5: but it continued to rally. You know, estimates continued to
Speaker 5: rise another fifty to seventy five billion dollars into this year.
Speaker 5: So it's it's really hard to say. However, there we
Speaker 5: take a step back and think about where we are
Speaker 5: in a hardware replacement cycle and what role AI may
Speaker 5: play in this. This could be a very interesting place
Speaker 5: to look in and where expectations have remained fairly muted
Speaker 5: for the moment, and it'll be interesting to see if
Speaker 5: that changes over the next six to eighteen months. What
Speaker 5: are you watching them very carefully?
Speaker 2: What are the stumbling rocks with that?
Speaker 3: I mean, Melissa, many talk to ultimately an issue with energy,
Speaker 3: but where can one be putting money to work that
Speaker 3: perhaps has been overlooked to late with that replacement cycle,
Speaker 3: with the need to refresh, with the need to invest.
Speaker 5: Yeah, I mean, if we I mean the hardware cycle
Speaker 5: went bonkers in in the COVID era. You know, I
Speaker 5: think consumers enterprises just rush to get the latest laptops,
Speaker 5: smartphones to really equip people to be more connected, more mobile,
Speaker 5: and to be able to work without having to worry
Speaker 5: about going into the office. And so that was an
Speaker 5: enormous catalyst for driving that replacement cycle. Now, a normal
Speaker 5: replacement cycle is normally around three to five years. And
Speaker 5: you know, given that COVID started in twenty twenty, we're
Speaker 5: squarely in that, you know, that area. So I think,
Speaker 5: you know, as we look out over the next year
Speaker 5: or so, it'll be interesting to see how companies start
Speaker 5: to think about spending and where they where they want
Speaker 5: to upgrade. Now, we've had a couple of compelling announcements
Speaker 5: by Microsoft and other laptop manufacturers, you know, showcasing their
Speaker 5: new AI laptops. Now, are these new AI laptops potentially
Speaker 5: going to get enterprises excited about the capabilities of Generative
Speaker 5: A to make their employees more empowered, more productive in
Speaker 5: a way they could really hit their bottom lines and
Speaker 5: ultimately drive that replacement cycle more than expectations. Current expectations
Speaker 5: are right around fifteen to twenty percent below where the
Speaker 5: peak COVID units were, So what could potentially drive.
Speaker 2: It some upside?
Speaker 3: Well, Best Buy certainly investing in their talent pool to
Speaker 3: be able to help sell those aipcs. When I say also,
Speaker 3: we thank you so much. Had a TMT researcher for
Speaker 3: Visible Alpha, all things markets and focus there coming up
Speaker 3: that we've got to get into the deal paramounts deal
Speaker 3: with s guidance.
Speaker 2: It's been revived. We'll have all the details next.
Speaker 3: This is BlueBag Technology. Shares of Paramount absolutely popping today.
Speaker 3: Once again, Speculation is rife. Have we got a deal
Speaker 3: between the company and the independent film and TV producers
Speaker 3: Skuydance Media. They've been revived looking to buy out Sharry Redstone,
Speaker 3: of course her particular controlling stake, and the deal reports
Speaker 3: continue to drive shares higher and indeed well analysts trying
Speaker 3: to understand whether this is in any way longer term
Speaker 3: good fundamental for paramount National Amusements. Of course, in Skydance
Speaker 3: re engaging in those talks. Laura Martin, the senior entertainment
Speaker 3: internet analyst and niederm and Co. Has been following this
Speaker 3: saga that will eventually be a movie for the last
Speaker 3: seven months, and Laura, I mean, we get hints from
Speaker 3: the Wall Street Journal that of a price point of
Speaker 3: one point seventy five billion dollars for the National Amusement stake,
Speaker 3: is that enough and what does it mean for the
Speaker 3: non voting shareholders?
Speaker 1: Right, so, the rumors is that the non voting shareholders
Speaker 1: in the second step would get fifty half of their
Speaker 1: shares taken out at.
Speaker 6: Fifteen dollars a share, which is quite a bit higher.
Speaker 1: Than today's move, which means that Wall Street's skeptical this
Speaker 1: deal will go through too. Otherwise, I think that gap
Speaker 1: would be narrower. So I think I think that Skydance. Look,
Speaker 1: two things changed in this deal compared to the deal
Speaker 1: Shearing walked away from a couple of weeks ago.
Speaker 6: One is it doesn't require the.
Speaker 1: Approval of the Independent Committee, but it all Instead, what
Speaker 1: she got was a forty five day shopping period. So
Speaker 1: in litigation, because she's going to get sued over this,
Speaker 1: because she's getting better terms than public shareholders, that when
Speaker 1: they get to court where the public shareholders are suing
Speaker 1: her for taking a sweetheart deal from Skydance, she can say, look,
Speaker 1: we shopped her for forty five days. No one else
Speaker 1: stepped in at this price point or more, and therefore
Speaker 1: we didn't screw you over public shareholders.
Speaker 3: So in that anticipation, the worry, the anxiety that Sharry
Speaker 3: Redstone has that she will be taken to court, what
Speaker 3: do you think that forty five day shopping experience will
Speaker 3: garne in any way? Laurie, You just give the viewpoint
Speaker 3: that no one's going to step forward.
Speaker 1: You know, I think most other companies would rather just
Speaker 1: buy Paramount and not give the money to National Amusement
Speaker 1: to her, But I don't expect them to go away
Speaker 1: because as you say, this saga is like the Boy
Speaker 1: who Cried Wolf. I mean, this deal's been on and
Speaker 1: off at least four times that I can think of.
Speaker 6: So if I was somebody else, I wouldn't stop doing
Speaker 6: trying to do deals.
Speaker 1: And you saw the Warner headline today that Warner is
Speaker 1: thinking of trying to put it streaming businesses together, specifically
Speaker 1: HBO Max with Paramount Plus to try to create a
Speaker 1: bundle to comb out the Disney bundle with Hulu.
Speaker 6: And so that's a smart idea.
Speaker 1: So other business is going to get done here while
Speaker 1: the fight for the top of who actually owns controls
Speaker 1: the entity continues.
Speaker 3: And potentially a sell off of BT we were expecting
Speaker 3: that and senior management looking to take that over in
Speaker 3: some way, Laura. So there are different parts of the
Speaker 3: asset pile here, and yesterday we're all talking about the
Speaker 3: room and that Barrydilla was eyeing, and of course previously
Speaker 3: had run the problem at movie part of the business
Speaker 3: when you're looking at the share price and you're saying,
Speaker 3: at the moment it doesn't go all the way to
Speaker 3: potentially fifteen dollars a share, that the voting on voting
Speaker 3: b class would get what.
Speaker 2: Should they do?
Speaker 3: If I am an investor, a significant investor in the costbiches,
Speaker 3: what do I do at this moment?
Speaker 1: So I would wait to see who's the president of
Speaker 1: the United States because as it currently so, the problem
Speaker 1: right now the Biden administration has really negative M and
Speaker 1: A people at the head of all these agencies. But
Speaker 1: if we get a presidential switch, this industry we're talking
Speaker 1: about right here all needs to consolidate.
Speaker 6: They all need to buy each other.
Speaker 1: There needs to be three competitors where they can rip
Speaker 1: out costs, and Disney gets needs to get bought by Apple.
Speaker 1: None of that consolidation can happen under the Biden administration.
Speaker 1: But if we get a flip in presidency, I would
Speaker 1: wait for that, And if the day that happens, I
Speaker 1: think they'll be massive consolidation in media over the next.
Speaker 6: Four years because all those all.
Speaker 1: The head of the DJ will change, the head of
Speaker 1: the FTC will change, the head of the FCC will
Speaker 1: change to a Republican, and I think they'll be far
Speaker 1: more sympathetic to allowing these the consolidation to occur to
Speaker 1: cut costs.
Speaker 3: Laura, we love it because you bring the viewpoints so
Speaker 3: who remains on top. Who eventually in four years time,
Speaker 3: if we do indeed get a change in the White
Speaker 3: House wins out.
Speaker 2: Who survives.
Speaker 1: YouTube number one streamer, Amazon Prime, number two streamer? I
Speaker 1: think the Disney Empire number three streamer, although I think
Speaker 1: Apple should buy Disney, and I think these other ones.
Speaker 6: I think Peacock.
Speaker 1: Peacock can't buy CBS, which Paramount owns, but Warner Brothers can,
Speaker 1: so maybe Paramount. Ultimately it doesn't go to sky Dance
Speaker 1: because I'm sort of skeptical after they're on and off
Speaker 1: all the time.
Speaker 6: Then it should go in pieces to different people.
Speaker 1: I think they if they waited to see what happened
Speaker 1: in the election, they might be able to get a
Speaker 1: better price. But I understand that Sherry wants to get
Speaker 1: this done. She's got a lot of debt do it's
Speaker 1: unclear she can pay unless she gets the steal.
Speaker 3: Done precisely, so she can't wait. We all look to
Speaker 3: what's happening in some valley. Will a deal be announced
Speaker 3: this weekend?
Speaker 2: Do you think?
Speaker 3: And ultimately talk us through the next steps of your
Speaker 3: own research at this point.
Speaker 1: Right so, you know there's no Harvard Business School case
Speaker 1: ever that says three. A three person committee is a
Speaker 1: better form of leadership than a single leader, and that's
Speaker 1: what we have at Paramount.
Speaker 6: We have a three person committee.
Speaker 1: So really there's no management, like there's no government, so
Speaker 1: it needs to go. And they've just just destroyed like
Speaker 1: seventy percent of the value. Oh well, and then if
Speaker 1: Trump gets in and everybody's consolidating. It just took the
Speaker 1: the worst possible price because it had to at Paramount.
Speaker 1: But then I think we get a lot of consolidation
Speaker 1: over the next four years and we end up at
Speaker 1: the end of the true if there's a Trump administration,
Speaker 1: we would end up with three competitors, maybe four, including
Speaker 1: Apple and Amazon. I'm sorry, Amazon and Comcast, Peacock and Disney.
Speaker 2: So what eleven dollars do we buy.
Speaker 6: At eleven dollars? No, I don't think you do.
Speaker 1: I think they've gone on and off with this deal
Speaker 1: too many times, so no, I don't think you buy it.
Speaker 3: Here, Laura Martin, we love having on the show. Thank you,
Speaker 3: Seing Entertainment and Internet over Anina and Co. Following the
Speaker 3: Supreme Court's decision to overturn that Chevron doctrine, lawmakers will
Speaker 3: now be forced to become or more specific about how
Speaker 3: they regulate AI, and for at least the past four years,
Speaker 3: judges have deferred to administrative agencies to interpret vague laws
Speaker 3: written by Congress. But now with the overturning of the
Speaker 3: Chevron doctrine, it raises the states for Congress to write
Speaker 3: legislation more efficiently, which could prove difficult in the field
Speaker 3: of artificial intelligence. Of of course, the rapid development and the
Speaker 3: volatility of the technology. I'm talking with the technology and
Speaker 3: how it's being adopted. It's time now for our weekly
Speaker 3: AI in Action segment for more insight on basically how
Speaker 3: you the enterprise are adopting AI.
Speaker 2: And please to say.
Speaker 3: We're joined by Glean, CEO of in Jane and you're
Speaker 3: talking about well, a new launch, your new platform which
Speaker 3: is going to be helping companies build custom AI apps,
Speaker 3: maybe some AI agents. We have been talking about AI
Speaker 3: agents for months of in but there are still blockers.
Speaker 3: Is to really make them effective? How will you help
Speaker 3: businesses adopt it?
Speaker 7: So, Gleen, AI agents are connected with all of it
Speaker 7: enterprise knowledge and think of them like humans that can
Speaker 7: actually use all of that knowledge to help you do
Speaker 7: your work.
Speaker 2: How who do they work.
Speaker 3: Who have you been already working with to ensure that
Speaker 3: when they're looking at their slack, when they're looking at
Speaker 3: their intercompany and communication, the agency AI they bring to
Speaker 3: bear really works with them.
Speaker 7: So Gleen AI agents are actually used by almost all
Speaker 7: the people inside any enterprise. You know. Think about engineers,
Speaker 7: support people, your salespeople, all of them have you know,
Speaker 7: different needs. You know that now AI is actually you know,
Speaker 7: very capable of helping them with and like save a
Speaker 7: lot of time for them. So, you know, for example,
Speaker 7: think about engineers. You know, they're always like you know,
Speaker 7: wanting to sort of get help writing code, helping toubleshoot issues,
Speaker 7: and so glean AI agents can actually help them, you
Speaker 7: know sort of do you know, work work on that
Speaker 7: much faster than they could before. Think about customer care agents,
Speaker 7: you know, day and day out, they are looking for
Speaker 7: like how to resolve questions that the customers ask, and
Speaker 7: Glean AI assistant will actually help them answer those questions
Speaker 7: for them.
Speaker 3: I believe you've got over two hundred customers. We're talking
Speaker 3: data bricks, Camevra bill. But why would a company choose
Speaker 3: glean over I don't know, chatchypt enterprise or Microsoft suffering.
Speaker 7: So Glean has some of the world's leading enterprise companies,
Speaker 7: many companies in the you know, you know, you know
Speaker 7: Global two thousand that used to you know, Glean and
Speaker 7: bring the product to all of their customers. Some of
Speaker 7: the key reasons why Glean works better than Microsoft you
Speaker 7: know Copilot or or Chat GPT is Gleen actually comes
Speaker 7: with deep integration, you know, built into all of your
Speaker 7: enterprise systems, like systems like Slack or sales Force or
Speaker 7: Google Drive or Microsoft systems. Like if you think about
Speaker 7: any large enterprise, you know, they have knowledge, there's you
Speaker 7: know that's spread across many of these different systems, and
Speaker 7: you know, and and actually to make AI work on
Speaker 7: all of that knowledge and do useful things for you,
Speaker 7: you have to first go and connect with those systems
Speaker 7: and do it in a secure and safe way. And
Speaker 7: that's where you know that Glink comes really handy, you know,
Speaker 7: with our enterprise integrations.
Speaker 3: Okay, so you've got the integrations. Maybe that could be
Speaker 3: replicated replicated by others, but I'm interested is what perhaps
Speaker 3: they can't replicate over at Microsoft is well using other
Speaker 3: large language models. They're fully embedded with open AI whereas
Speaker 3: you're kind of more agnostic. You've got open AI, you've
Speaker 3: got anthropic Why go that route?
Speaker 7: Well, I mean, like you said, I mean all of
Speaker 7: these models, like there's so much competition in the market
Speaker 7: and and you'll see, you know, each model having like
Speaker 7: you know, some you know unique strength, and you know,
Speaker 7: as a customer, like you want to make sure that
Speaker 7: you know you have access to the best of all
Speaker 7: the models that are out there. And that's what Gleen
Speaker 7: actually helps you do. We work with all the different
Speaker 7: AI models and depending on like your use case, your environment,
Speaker 7: like there's a particular model that you know suits your
Speaker 7: needs the most and will actually use that model for
Speaker 7: you and give you that flexibility.
Speaker 3: Great to have some time with you. Thank you for
Speaker 3: coming to us live from India today. Glean CEO OF
Speaker 3: and Jaine say, well, meanwhile, it's time now for talking
Speaker 3: tech and first up.
Speaker 2: Keywords Studios.
Speaker 3: Let's agreed to a two and a half billion dollar
Speaker 3: offer from investment firm EQT. Investors will get about twenty
Speaker 3: six dollars forty per share in a cashdown from an
Speaker 3: earlier offer of twenty seven dollars fifty. That's because Keywords
Speaker 3: worked on popular titles such as Fortnite in Call of Duty,
Speaker 3: but accepted the lower price after the gaming services industry
Speaker 3: was hit with delays and canceled orders. Now Jim Rackliss
Speaker 3: Inears Group is delaying its electric suv. Production of the
Speaker 3: vehicle was expected to begin in twenty twenty seven, but
Speaker 3: the company has now put the car on the back burner,
Speaker 3: citing waning consumer demand for ebs and.
Speaker 2: Uncertainty around tariffs.
Speaker 3: No new timeline for production was specified, and shares a
Speaker 3: soft Bank rising to an all time high. Look the
Speaker 3: rally has been indicating a vote of confidence in CEO
Speaker 3: Masayoshi San as he's really been ramping up investments in
Speaker 3: oddificial intelligence and semiconductors. Soft Bank also getting a lift
Speaker 3: with a help from the nickety two pis recovery. Of course,
Speaker 3: it's expected to help boost the firm's earnings. Welcome back
Speaker 3: to Bluemog Technology and Karen Hide in New York. Quick
Speaker 3: check on these markets because a lot of political anxiety
Speaker 3: here in the United States, But more broadly, we're focused
Speaker 3: on the macro data fact that we've got perhaps some
Speaker 3: slowing services data and indeed a little bit of calling
Speaker 3: going on in the labor market. All eyes on non
Speaker 3: farm pay rolls later this week. Now's that one hundred
Speaker 3: and up to five tenths of a percent. Can the
Speaker 3: FED cut into a scenario where services is cooling?
Speaker 2: That is currently the bed on Wall.
Speaker 3: Street, I'm looking at ten yure yield crushing down some
Speaker 3: eight points on the back of some of that data.
Speaker 3: But interestingly, we're looking at what's happening in Europe. We
Speaker 3: close out the day on the higher side on the
Speaker 3: stock six hundred and indeed on the foote one hundred
Speaker 3: and six tens percent. That says, of course the UK
Speaker 3: population head to the polls come tomorrow. We're up six
Speaker 3: tenser percent because largely minus international company is doing well.
Speaker 3: Move on, have a look at some of the individual
Speaker 3: movers that I'm seeing and look four percent higher for Tesla,
Speaker 3: let's call it five percent, let's call it most of
Speaker 3: the losses of twenty twenty four are raised so far
Speaker 3: with Tesla, with all eyes on the Robotaxi event August
Speaker 3: the eighth, all eyes on the fact that actually deliveries
Speaker 3: came out better than expected, even if we did slow
Speaker 3: and quarter a year on year. I'm looking at Nvidia
Speaker 3: down well up two point seven percent, if we're now
Speaker 3: back on top. It was lower, and there was much
Speaker 3: being said about the fact that the S and P
Speaker 3: five hundred yesterday reached a.
Speaker 2: New record high.
Speaker 3: So did the naznag even within Vidia not playing Today
Speaker 3: we go along and again we're up at one hundred
Speaker 3: and twenty five dollars for the chip maker. And of
Speaker 3: course what's happening with Apple training flat on the day
Speaker 3: we had actually seen up about five ten percent in
Speaker 3: earlier trade.
Speaker 2: Much being made really on what's.
Speaker 3: Happening with Apple and it's AI play Apple Intelligence and
Speaker 3: indeed Open ai the relationship there we understand it secured
Speaker 3: an observer role on open AI's board as part of
Speaker 3: an agreement announced last month. Who had the scope of
Speaker 3: course ours our own Mark German And so is this
Speaker 3: impactful to almost be neck and neck with Microsoft here
Speaker 3: with an observer position on the board.
Speaker 8: Thank you so much for having me. Yeah, having an
Speaker 8: observer position on the open ai board means this partnership
Speaker 8: between Apple and open ai is a little bit tighter
Speaker 8: than we had anticipated. Right, This seemed like a simple
Speaker 8: integration of chat GPT into Apple Intelligence obviously the first
Speaker 8: partner here by by having a board observer role, Apple
Speaker 8: gets more insight into the decision making at the company,
Speaker 8: and this is something that probably came in response to
Speaker 8: all the controversy that was facing open AI in the
Speaker 8: months prior to the agreement between Apple.
Speaker 6: And the company being announced.
Speaker 8: Apple probably said, if you want this to go through,
Speaker 8: to know how your company is run and what's going on.
Speaker 3: There, and tell us about Phil Schiller, who they've chosen
Speaker 3: to be that observer.
Speaker 8: Still Schilder, his title is Apple Fellow. He's in charge
Speaker 8: of the app store and Apple's product presentations, including the
Speaker 8: one where the opening ideal was announced in June at
Speaker 8: its Worldwide Developers Conference. He's been at Apple about three decades,
Speaker 8: very much a top lieutenant still to Tim Cook and
Speaker 8: was one of the closest lieutenants and friends of Steve Jobs.
Speaker 8: He ran Apple's marketing organization for well over twenty years.
Speaker 8: He's known as one of the biggest defenders at the
Speaker 8: company of Apple's privacy stances is product development process, it's
Speaker 8: overall brand image and given the concerns over different concerns
Speaker 8: from open AI and the safety with AI training, concerns
Speaker 8: about Sam Altman, concerns about their technology concerns about ethics
Speaker 8: and artificial intelligence concerns about hallucinations. It doesn't make sense
Speaker 8: for someone like Schiller with that mindset to be the
Speaker 8: one in that board observe role, especially if they're looking
Speaker 8: for someone who's not from the AI sided Apple, who
Speaker 8: would be in direct competition with the AI side of
Speaker 8: open Ai.
Speaker 3: Yeah, some awkward moments where maybe you're having to be
Speaker 3: excused from certain board meetings when they really get into
Speaker 3: the nitty gritty of AI.
Speaker 2: Mark.
Speaker 3: I'm interested in whether or not it is all about
Speaker 3: open ai for Apple now because they were in talks
Speaker 3: with other providers for large rue which models.
Speaker 8: Yeah, open Ai certainly, they've said for a while offers
Speaker 8: the best chatbot with chat GPT and that feature that
Speaker 8: open Ai is integrated into. It's all about the chatbot,
Speaker 8: all about texting questions or voicing questions into Siri while
Speaker 8: using your iPhone, iPad or Mac and as a reporter.
Speaker 8: That's going to come to the Apple Vision pro as
Speaker 8: well as early as next year. But it doesn't stop
Speaker 8: at open Ai. Apple's goals to have an ecosystem of
Speaker 8: different chatbot providers that users can choose from, not dissimilar
Speaker 8: to how you can choose between Yahoo being Google, Duckdutgo
Speaker 8: as your search engine in Safari or any other mobile platform.
Speaker 8: So they're still engaged in conversations with Google Gemini as
Speaker 8: an alternative to Open AI for people who may want
Speaker 8: to use that platform. Obviously, that would be an extension
Speaker 8: of the Google Search deal, so it would makes sense
Speaker 8: that Google would get in there. The other company they've
Speaker 8: been talking to is Inthropic. They're also a big AI provider.
Speaker 8: One company that they're not talking to and you should
Speaker 8: not expect to be integrated into Apple platforms is Meta
Speaker 8: with Lama. That is something that is not happening. They
Speaker 8: had a brief conversation around February March timeframe when we
Speaker 8: reported on the Open AI and geminideal initially, but neither
Speaker 8: party moved to any sort of discussions or advanced negotiations.
Speaker 8: I would imagine there's going to be more providers down
Speaker 8: the road. Apple hinted at wanting some sort of specialized
Speaker 8: chatbots in there. For instance, maybe someone comes up with
Speaker 8: a chatbot that's all about food recipes. Maybe someone comes
Speaker 8: up with a chat pot that's all about medical terminology
Speaker 8: and medical information. Perhaps a doctor would want to use
Speaker 8: that during a doctor's visit. So there are many, many
Speaker 8: opportunities for more chatbots to be integrated.
Speaker 6: Into the OS.
Speaker 8: It's just to be seen how the integration is done
Speaker 8: and when it happens. I expect Google to be done
Speaker 8: before the end of the.
Speaker 2: Year an app store Forreyi chatbots.
Speaker 3: Marco Hemman, we thank you so much on all things
Speaker 3: open AI and Apple. Meanwhile, AI is everywhere we know,
Speaker 3: and it's particularly in the.
Speaker 2: World of bench capital.
Speaker 3: It would seem that venture deal making coming back, and
Speaker 3: it's all really thanks to artificial intelligence. Let's bring in
Speaker 3: Blomberg's Katie Ruth, who's deep within the VC team nowadays.
Speaker 2: And look, we're back.
Speaker 3: When it comes to VC deal making, but it's very specific.
Speaker 9: Right It's got to be AI or one of the
Speaker 9: other hot categories like defense tech right now. Otherwise it's
Speaker 9: really hard to raise money right now.
Speaker 2: I mean, if you look at the data.
Speaker 9: Yes, we're up from where we were two years ago.
Speaker 9: But two years ago was practically done Bust two point zero,
Speaker 9: So we're back from from dead. But you know, we're
Speaker 9: not back to normal or the ideal that many vcs
Speaker 9: are hoping.
Speaker 3: Fifty five point six billion dollars was invested by US
Speaker 3: vcs of about a half from a year earlier quarter,
Speaker 3: we understand. So this is all coming from pitchbook. Is
Speaker 3: this a global theme? Are we really thinking that? You know,
Speaker 3: we just had arvind On from Glenova based in India.
Speaker 3: Are we seeing VC US VC money back international AI stories.
Speaker 9: Yeah, it's more or less the same theme throughout the world.
Speaker 9: The VC ecosystems pretty interconnected. But yes, AI is exciting
Speaker 9: investors throughout the world, particularly the leading AI companies are
Speaker 9: getting lots of money, and that's partly worth skewing the data.
Speaker 9: And also you have companies like Elon Musk's Xai that
Speaker 9: raised six billion dollars, which you know accounts for a
Speaker 9: size of percentage of that. And so it's really that
Speaker 9: it's not that there are a large number of companies
Speaker 9: that are raising money.
Speaker 2: I think the data actually showed it.
Speaker 9: Was the lowest number since the second quarter of twenty twenty.
Speaker 9: But it's that it's concentrated in the heart companies that
Speaker 9: are bessers are excited about Katie Ruff.
Speaker 2: Great to have you on the VC beef with us,
Speaker 2: Thank you very much.
Speaker 3: Indeed, meanwhile, let's stick with venture Nick Stronski you know him,
Speaker 3: of course for the last decade shaking up banking with
Speaker 3: his financial services firm Revolute in the UK, while he's
Speaker 3: now looking to pull off a similar fee in venture capital.
Speaker 3: He's actually built a quantitive investment firm for early stage
Speaker 3: companies called quantum Light. It relies on algorithms AI over
Speaker 3: human input to source deeals and it's invested in almost
Speaker 3: a dozen startups in the past year after raising about two.
Speaker 2: Hundred million docs.
Speaker 3: I mean, while coming up, we're going to be talking
Speaker 3: big business and the adoption of AI. Paul Hudson's CEO
Speaker 3: of son off E. It's going to be discussing how
Speaker 3: he's integrating generative AI in the world of biofarmer.
Speaker 2: That's next. This is blom Make Technology.
Speaker 3: Look, we've got to talk about the impact of generator
Speaker 3: AI in real life across industries, biofarmer being one of them.
Speaker 3: And I'm priessed to welcome of the show. Paul Hudson,
Speaker 3: CEO of Sanofi, discuss how your enormous French bio farmer
Speaker 3: company has been leveraging the new technology in its operations.
Speaker 3: And yes there's drug discovery, but also what's so interesting,
Speaker 3: Paul is you're integrating it within the functionality of your
Speaker 3: business on a day to day basis.
Speaker 10: Yeah, thank you, and it's a pleasure to be here.
Speaker 10: We're really trying to do incredible things for patients and
Speaker 10: discovering new medicines. And you know, with AI being the
Speaker 10: great disruptor and all of the excitement last year, the
Speaker 10: wow of large anguish models, and this year for us,
Speaker 10: it's all about the how and how we can get
Speaker 10: our you know, the large amounts of our organization focused
Speaker 10: whether you're in a lab doing experts, whether using generative
Speaker 10: AI in regulatory or text driven parts of our business,
Speaker 10: and importantly snackable AI when we're looking at really trying
Speaker 10: to give better decision intelligence for almost everybody in the
Speaker 10: organization with the sole intent of becoming much more efficient
Speaker 10: effective in delivering HU meds. And it's amazing.
Speaker 3: Really, I love this snackable AI you're using play it's
Speaker 3: a proprietary app. But I've got to ask sort of,
Speaker 3: how have you thought about which underlying large language model you.
Speaker 2: Should look to.
Speaker 3: How you integrate this do you go to outsourced, do
Speaker 3: you build it from within?
Speaker 2: Point?
Speaker 10: Well, look, we're drug discoverers and developers. We're not coders
Speaker 10: at our heart. So we have this first of its
Speaker 10: kind relationship now with open Ai, a partnership with Formation
Speaker 10: Bio translating that for is to make sure that we
Speaker 10: can be customizing large language models to look at drug discovery,
Speaker 10: to try and drug undruggable diseases. To this point, and
Speaker 10: we're doing things that have really never been done before.
Speaker 10: It's early days, but it's extremely promising. And remember there's
Speaker 10: such a large amount of diseases that don't have medicines
Speaker 10: available for them because we simply have not had the
Speaker 10: computing pair of the opportunity to deploy ourselves. And now
Speaker 10: just now we're at this next great revolution in science.
Speaker 10: It's such a privilege actually to lead a company at
Speaker 10: this point. As for play, our sort of snackable approach,
Speaker 10: we've partnered with a small startup out of Germany, a ley.
Speaker 10: They've been working weathers, they've grown weathers, and that's by
Speaker 10: the way, open for everybody. We don't own it, we
Speaker 10: have it to share it. We want all boats to
Speaker 10: rise win healthcare after all, and so the more users,
Speaker 10: the more fun, the more accuracy, the more chance to
Speaker 10: discovering new medicines.
Speaker 3: So have your talent reacted because there's so much do
Speaker 3: mongering that AI is going to take all our jobs.
Speaker 10: Well, I think our approach has been how to weaponize
Speaker 10: our people to do better. Like you know, I don't
Speaker 10: know whether you're familiar with Ways, the driving app, but
Speaker 10: I see it very much like that. I got to
Speaker 10: get in the car, I'm going to start the end
Speaker 10: and drive to the end of the street. And if
Speaker 10: Ways says I'm statistically more likely to have an easier
Speaker 10: journey turning left rather than turning right, I want that
Speaker 10: advice as crowdsource large data, real time. I want our
Speaker 10: people to feel they are amplified or multiplied in that event.
Speaker 10: In that event too. The goal is not about less people.
Speaker 10: The goal is about putting our people to be more
Speaker 10: effective and to make and to have better decision intelligence
Speaker 10: than itself gives us a great opportunity to do something incredible,
Speaker 10: and we've only seen a huge Appetite's why on any
Speaker 10: given day we have eighteen thousand people in our organization
Speaker 10: using the EI we make available, and I think that's
Speaker 10: pretty fantastic.
Speaker 3: Let's talk about doing the amazing, the incredible, because we
Speaker 3: have just seen a push up in your share price
Speaker 3: on the day. And you've been reorientating this business of
Speaker 3: Sonofye and thinking about more R and D, about drug
Speaker 3: discovery and applicate and look some costly cases in the
Speaker 3: way that you have to experiment in clinical t but
Speaker 3: they've paid off today and we think about the drug
Speaker 3: discovery when it comes to a key lung chronic long disorder.
Speaker 2: Can you just tell us about what that means to
Speaker 2: the business.
Speaker 10: Well, in Europe, just yesterday today we got approval for
Speaker 10: chronic constructive coon me disease COPD ficks a huge number
Speaker 10: of people, third biggest killer. We're ready to go now
Speaker 10: in Europe to be able to provide an advanced therapy
Speaker 10: that will reduce their chance to go to hospital by
Speaker 10: a third, and that's a breakthrough when there's been so
Speaker 10: little innovation. We aspire to be the world's leading immnology company,
Speaker 10: and that's partly driven by moments like that that we
Speaker 10: live for in our industry to do things that transform
Speaker 10: or protect patients' lives, will prevent disease. You know, the
Speaker 10: reality is we're a very proud, huge, big company, but
Speaker 10: we wanted to be at the forefront of science again,
Speaker 10: and we've made some big bets, but appropriately so to
Speaker 10: try and make sure our science is some of the
Speaker 10: most exciting and it's first in class or best in class.
Speaker 10: And to couple it with our conversation of earlier. The
Speaker 10: more we add AI, the more we improve our decision intelligence,
Speaker 10: the more opportunity we have to do more.
Speaker 2: In that space.
Speaker 10: And I think that's what's catching the excitement in our organization,
Speaker 10: and we believe we're quite far ahead. I mean, of
Speaker 10: course we're very responsible about how we use AI, but
Speaker 10: others are still hesitating. We're taking our moment, but.
Speaker 3: Sometimes you need good data to feed in to these
Speaker 3: large language models. Paul, what about the data on viruses
Speaker 3: such as well bird flu at the moment here in
Speaker 3: the UK and the US. Indeed, Look, there is a
Speaker 3: worry that the data hasn't been good enough in the
Speaker 3: United States. Is that something that worries you and you
Speaker 3: need to be developing a new vaccine for that.
Speaker 10: Look, I mean, we've been through one pandemic. I think
Speaker 10: we've learned a great deal about trying to have the
Speaker 10: best data, and I think we position ourselves to take
Speaker 10: advantage of those opportunities on behalf of society. Frankly, we
Speaker 10: played a part small part in COVID, but we stand
Speaker 10: ready should we be asked the data and it's legitimacy,
Speaker 10: you know. We often that data comes in through government channels,
Speaker 10: through health systems, you know, and we work at real
Speaker 10: time speed to make sure that we have the very
Speaker 10: best data available in terms of large language models and
Speaker 10: the rest of the data sets. You know, we collaborate
Speaker 10: far and wide. We have punishes with oak in with
Speaker 10: atom wise, with excyensia. We really are trying to make
Speaker 10: sure that we have at our fingertips huge data sets
Speaker 10: to mean our accuracy and our predictive capability is far
Speaker 10: ahead of the competition. We won't get it right everywhere,
Speaker 10: but the data integrity of the absolute fundamental start in place.
Speaker 10: Our relationship with open AI and with formation by it,
Speaker 10: we're putting our own data at play to make sure
Speaker 10: that they can learn from it too. Again, all boats
Speaker 10: your rights. We're in healthcare to do good.
Speaker 3: You're also selling off bits of healthcare because you're focusing
Speaker 3: in on the R and D, the drug side, and
Speaker 3: maybe the consumer business goes for a hefty price tag.
Speaker 3: You've been thinking about IPO and you've been thinking about sale.
Speaker 2: How is that process going poor?
Speaker 10: Well, we announced that October that we were going to
Speaker 10: become a pure play by Farmer. You know, we want
Speaker 10: to double down on the things we just talked about,
Speaker 10: and we have an incredibly successful and energized consumer business.
Speaker 10: We feel that they feel, in fact, that they can
Speaker 10: stand better on their own two feet and be independent,
Speaker 10: raise their own capital, take on their own projects, and
Speaker 10: we want to support them in that. It's the right
Speaker 10: thing to do. Our capitals should be allocated towards discovering
Speaker 10: new medicines, and there should be about growing their business
Speaker 10: fast in the market, which by the way, they're doing
Speaker 10: very successfully. We've declared that buy as early as Q
Speaker 10: four twenty four will be ready to go to separate
Speaker 10: that business. We haven't shared how we will do it,
Speaker 10: but I think it's quite well known that, you know,
Speaker 10: we're talking to interesting parties, certainly Pe, and we have
Speaker 10: the capital markets vehicles available to us too. So no,
Speaker 10: we're excited for them. There's a huge amount of interest.
Speaker 10: It's a great business and we hope to create value
Speaker 10: for patients, for stakeholders, and indeed for the people in
Speaker 10: the business.
Speaker 3: Q four twenty four is pretty notable given that we're
Speaker 3: in quite a politically uncertain time. Look, we two bricks
Speaker 3: sit here looking that there's going to be an election
Speaker 3: and people voting in the UK tomorrow and then of
Speaker 3: course this weekend is all important for France. How as
Speaker 3: a leader of such a French giant, are you feeling
Speaker 3: about the political risk of doing a deal in this market?
Speaker 10: Well, look, you know, in terms of healthcare and being
Speaker 10: a leader of ann incredibly important French company, you know,
Speaker 10: our first priority is to ensure that whoever governs, they
Speaker 10: provide a predictable, stable environment because research is a ten
Speaker 10: to fifteen year process, so you know, we need to
Speaker 10: think long term. We hope that whoever leads the country
Speaker 10: will think long term. We know the current government has
Speaker 10: been incredibly supportive of innovation and creating that ecosystem. We
Speaker 10: hope that that would continue. Of course, you know, there
Speaker 10: are people trying to understand what it means for the economy,
Speaker 10: much like for the change in government. If it's to
Speaker 10: come about in the UK, and people want that predictability
Speaker 10: in the markets too, you know, we'll long term player
Speaker 10: trying to do the right things for patients, trying to
Speaker 10: drug the undruggable, and we hope to partner with whoever's
Speaker 10: in power, of course, because we have to be ready
Speaker 10: to do our part for society, and you know, so
Speaker 10: far we believe that can continue.
Speaker 3: Paul, it's been great talking to you the intersection of
Speaker 3: drug discovery of artificial intelligence snackable AI as you call it,
Speaker 3: Paul Hudson, great to have some time, CEO A Sanofie.
Speaker 3: Can you believe it? Today marks one year of the
Speaker 3: existence and metas Threads up in a bid of course
Speaker 3: at the time to capitalize on the struggles of Elon
Speaker 3: Musk's platform X number those cage fights and the talk
Speaker 3: of that when one year in, Threads may soon compete
Speaker 3: with X actually for advertising dollars as well.
Speaker 2: Let's discuss all of this in Bloomberg's Kurt.
Speaker 3: Wagner and what what was notable about Threads is there
Speaker 3: wasn't advertising and there still isn't.
Speaker 2: But will there be? Will that tap be turned on soon? Yeah,
Speaker 2: that's the plan.
Speaker 11: Conversation with Adam Assari who runs Instagram Instagram overseas Threads
Speaker 11: and you know he said they want to do ads
Speaker 11: sooner rather than later, right, And that's a big deal.
Speaker 11: If you are X because Meta's ad system is just
Speaker 11: so much more advanced. Advertisers are already used to spending
Speaker 11: on Facebook and reels and Instagram, and if you add
Speaker 11: you know, Threads into the mix, I really do think
Speaker 11: that could be the kind of thing that takes you know,
Speaker 11: money away from X, which is already struggling as you
Speaker 11: know what is.
Speaker 3: Adam and the team at Meta really sort of admitted
Speaker 3: to and learned because it was a fascinating launch.
Speaker 2: Threads sort of was.
Speaker 3: Almost iterated on and built while we all played with it.
Speaker 2: There was talk of decentralization. What has actually occurred with
Speaker 2: the product?
Speaker 11: Yeah, I mean they have moved quickly. There are there
Speaker 11: are some good things that they've done in the first year.
Speaker 11: You know, they did launch an API. Recently they've sort
Speaker 11: of came out with this like tweet deck like feature
Speaker 11: so that you could have multiple columns of you know,
Speaker 11: feeds at one time. But where I think they really
Speaker 11: struggled is to figure out, like what is the point
Speaker 11: of threat? What's the purpose?
Speaker 4: Right?
Speaker 11: I think Twitter, before Elon got there, we knew.
Speaker 5: What it was.
Speaker 11: It was the place you went for breaking news, and
Speaker 11: that was the specialty. I don't think Threads has a
Speaker 11: specialty right now, and it's kind of been reluctant to
Speaker 11: lean into breaking news in the way Twitter did, And
Speaker 11: so I worry for them. If they're not great at
Speaker 11: one thing, what do they.
Speaker 3: Become And to that point will that put off advertising
Speaker 3: or was there a threshold that Adam felt had been
Speaker 3: hit that then meant okay, we're good to go.
Speaker 2: We can lean into turning on the money now.
Speaker 10: Well.
Speaker 11: I think the benefit they have on the advertising the
Speaker 11: front is that people are familiar with their ads systems, right,
Speaker 11: so you could go and you could put money in,
Speaker 11: and you could just take a little sliver of that
Speaker 11: money and say, hey, send this over to Threads, right like,
Speaker 11: you don't have to if you're an advertiser learn something
Speaker 11: brand new, which I think is a huge advantage for them.
Speaker 11: You know, it'll determine It'll be interesting to see if
Speaker 11: advertisers think Threads is relevant enough for their ad dollars.
Speaker 11: But for now, I think it's a very interesting thing
Speaker 11: that people will eventually want to test out when they
Speaker 11: do choose to turn the ads on.
Speaker 2: It's meant to be a nicer pace place to play.
Speaker 2: And I know Kurt Wagner.
Speaker 3: You're out there on threads putting out some posts, so
Speaker 3: go check them out there. We love you for your work,
Speaker 3: Thank you for coming on. Meanwhile, that does it for
Speaker 3: this edition of Bloomberg Technology. Do not forget to check
Speaker 3: out on podcast Provide Not on the terminal, as well
Speaker 3: as online on Apple, Spotify, and iHeart. Meanwhile, we wish
Speaker 3: you are very happy July fourth tomorrow, but tune in
Speaker 3: if you want to catch me.
Speaker 2: I'm still on. This is Bloomberg Technology.