WEBVTT - Musk's New Efficiency Role, Bitcoin Passes $90K 0:00:02.600 --> 0:00:09.680 Bloomberg Audio Studios, Podcasts, radio news from Mahard. 0:00:09.800 --> 0:00:14.240 We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:14.600 --> 0:00:19.120 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:32.800 --> 0:00:35.199 Live from New York and San Francisco. This is Bloomberg 0:00:35.240 --> 0:00:39.000 Technology coming up. President electrom and Elon Musk are in 0:00:39.159 --> 0:00:42.800 Washington today. We dissect the tech founder's extraordinary political role. 0:00:43.680 --> 0:00:46.480 Plus we speak with a key investor in Swiggy about 0:00:46.479 --> 0:00:49.520 the latest landmark Indian IPO. 0:00:49.479 --> 0:00:52.000 And SoftBank will be the first to build a supercomputer 0:00:52.080 --> 0:00:54.800 with chips using Nvidia's new Blackwell design. 0:00:55.680 --> 0:00:58.400 President electromp is due to meat with President Biden. Let's 0:00:58.400 --> 0:01:01.240 get out to Washington, DC and Bloomberg. Katie Lyones, who 0:01:01.320 --> 0:01:04.000 joins us from right outside of the White House. A 0:01:04.080 --> 0:01:06.680 meeting there was telegraphed. We've known about it being on 0:01:06.720 --> 0:01:10.759 the schedule for a few days. But significant, Kayley, Yeah. 0:01:10.640 --> 0:01:13.280 It is significant, Ed, mostly because this is not something 0:01:13.319 --> 0:01:16.520 we saw in twenty twenty. Donald Trump did not extend 0:01:16.520 --> 0:01:18.600 an invitation to Joe Biden to meet him at the 0:01:18.600 --> 0:01:21.200 White House like this, as is American tradition. But now 0:01:21.200 --> 0:01:23.880 Biden has done the same or rather, she was in 0:01:23.959 --> 0:01:26.440 differently as he invited Donald Trump to be here with 0:01:26.520 --> 0:01:28.760 him today for what is a typical part of the 0:01:28.840 --> 0:01:31.800 transition process. This administration, of course, has pledged that there 0:01:31.800 --> 0:01:35.080 will be a peaceful transition of power for President elect 0:01:35.360 --> 0:01:37.399 Donald Trump. As for what they will talk about in 0:01:37.440 --> 0:01:39.399 this meeting, the White House has been pretty tight lid 0:01:39.400 --> 0:01:42.080 about that. The Press Secretary Karine Jean Pierre yesterday and 0:01:42.520 --> 0:01:45.360 the Press briefing was asked about the subject matter and 0:01:45.400 --> 0:01:48.200 she said they prefer to keep private conversations private. As 0:01:48.240 --> 0:01:51.080 for some educated guesses as to what they could talk about. 0:01:51.120 --> 0:01:55.480 In addition to of course domestic issues preserving American democratic institutions, 0:01:55.520 --> 0:01:57.760 there could be some foreign policy in this meeting as well, 0:01:57.800 --> 0:02:00.120 as we've seen in the past, like for example, in 0:02:00.160 --> 0:02:02.720 twenty sixteen when then President Barack Obama met with Donald 0:02:02.760 --> 0:02:06.600 Trump after his first election victory. So we'll wait to 0:02:06.640 --> 0:02:09.239 see if we get any characterization of this meeting from 0:02:09.240 --> 0:02:13.320 either the current president or the President elect. But obviously 0:02:13.360 --> 0:02:16.680 it is going to be an important photo opportunity and 0:02:16.720 --> 0:02:19.880 assigned to the American people that the democratic process is 0:02:19.919 --> 0:02:20.840 working as usual. 0:02:21.440 --> 0:02:26.280 Kayleie involved in toe Leta with House Republicans is el 0:02:26.320 --> 0:02:28.000 mask Can you just tell us a little bit about 0:02:28.040 --> 0:02:30.440 what you're hearing with a relationship that and who else 0:02:30.600 --> 0:02:33.239 Trump president elect Trump is assigning roles. 0:02:34.560 --> 0:02:37.079 Well, certainly we got some big news pertaining to Elon 0:02:37.200 --> 0:02:40.840 Musk and another high profile Republican Vivek Ramaswami, who of 0:02:40.840 --> 0:02:44.639 course ran against Donald Trump during the primary campaign earlier 0:02:44.680 --> 0:02:47.079 this year. They will be heading up together the Department 0:02:47.120 --> 0:02:50.799 of Government Efficiency or DOGE you might be able. 0:02:50.600 --> 0:02:51.000 To call it. 0:02:51.240 --> 0:02:54.919 Essentially given until July fourth, twenty twenty six, to help 0:02:55.000 --> 0:02:58.880 cut waste in government and deregulate things. Present a proposal 0:02:59.000 --> 0:03:01.080 essentially for how that can be done. I would just 0:03:01.120 --> 0:03:02.720 point out though that this of course is not a 0:03:02.760 --> 0:03:05.680 direct government role. It may avoid some of the conflict 0:03:05.720 --> 0:03:08.480 of issues or conflict of interest issues that could arise 0:03:08.600 --> 0:03:11.440 if Elon Musk was given a more direct role in 0:03:11.480 --> 0:03:13.600 government by Donald Trump, but by and large they will 0:03:13.600 --> 0:03:16.840 not actually have the power to exercise these spending cuts. 0:03:16.880 --> 0:03:19.320 That is still going to be up to the appropriators, 0:03:19.320 --> 0:03:22.640 which is Congress. Is they set their budgets and appropriate 0:03:22.960 --> 0:03:25.160 the money that is there to be spent accordingly. So 0:03:25.200 --> 0:03:28.079 while they can make recommendations, this isn't necessarily giving him 0:03:28.400 --> 0:03:31.440 direct clear power over the way in which money is 0:03:31.480 --> 0:03:33.680 spent or not in the federal government. All that said, 0:03:33.720 --> 0:03:36.840 it does clearly underscore the very close relationship that Donald 0:03:36.840 --> 0:03:39.360 Trump now has with the richest man in the. 0:03:39.280 --> 0:03:43.080 World, Katie Lines outside the White House, we appreciate it. 0:03:43.400 --> 0:03:47.320 Let's bring more on this growing clout that Elon Musk 0:03:47.360 --> 0:03:50.280 has over in Washington. Bluembgs, Michael Shepherd is with us 0:03:50.320 --> 0:03:53.520 and to that point, the doge or doge however, we're 0:03:53.520 --> 0:03:56.760 going to be discussing it. Michael, just where do you 0:03:56.880 --> 0:03:59.960 think the rubber hits the road from the perspective of Washington. 0:04:00.320 --> 0:04:03.320 Because we all know Elon Musk demon mode. We know 0:04:03.360 --> 0:04:05.520 how focus he can be on stripping out costs, how 0:04:05.560 --> 0:04:08.960 he can really focus in and hone a particular issue 0:04:09.120 --> 0:04:12.600 and manage to ultimately provide, whether it be cars or 0:04:12.640 --> 0:04:15.240 whether it be rockets. But what about efficiency cuts and 0:04:15.320 --> 0:04:16.440 two trillion dollars worth. 0:04:17.720 --> 0:04:20.680 Well, it's a great question, Caroline, and it really cuts 0:04:20.720 --> 0:04:24.200 to the heart of whether this effort will actually produce 0:04:24.240 --> 0:04:28.159 the kind of results that Elon Musk expects and may 0:04:28.200 --> 0:04:31.640 be seeding with Donald Trump in expectation of his own 0:04:31.920 --> 0:04:34.040 that he would be able to replicate what he has 0:04:34.080 --> 0:04:36.680 done in the private sector here in the public sector. 0:04:36.720 --> 0:04:40.120 And the truth is, every expert who understands government spending 0:04:40.520 --> 0:04:45.360 and government performance sees a vast difference between how an 0:04:45.400 --> 0:04:49.680 agency operates and how a corporate entity is run. In 0:04:49.720 --> 0:04:52.920 many ways, the differences are so historic when it comes 0:04:52.960 --> 0:04:57.120 to how employees are contracted, paid, what they're judged on, 0:04:57.320 --> 0:05:00.599 but also just simply what kind of service or good 0:05:00.680 --> 0:05:03.000 or product they're trying to provide. 0:05:03.360 --> 0:05:05.960 Michael, I want to be clear with a Bloomberg Technology 0:05:06.000 --> 0:05:10.760 audience that the Department of Government Efficiency, per the details 0:05:10.800 --> 0:05:14.000 that President elect Trump team put out, is not a department. 0:05:14.440 --> 0:05:18.120 It acts outside of government, which is interesting, right. There 0:05:18.120 --> 0:05:21.160 are lots of questions about whether must continues the CEO 0:05:21.240 --> 0:05:23.840 of TESLA, But what is it that he's going to 0:05:23.920 --> 0:05:26.120 target from outside of government? 0:05:27.480 --> 0:05:31.760 Well, again, there are so many questions about this initiative 0:05:32.080 --> 0:05:34.840 that still have to be answered, the structure of it, 0:05:35.080 --> 0:05:38.799 how many people will be working on this effort to 0:05:38.839 --> 0:05:42.440 see it through, who will write the recommendations, Will Musk 0:05:42.520 --> 0:05:45.480 be pulling in people and the Vekaramaswami be pulling in 0:05:45.520 --> 0:05:50.080 people from their own ventures and entities and maybe structuring 0:05:50.120 --> 0:05:53.839 some of these quests for efficiency in a way that 0:05:53.920 --> 0:05:57.520 benefit the companies that they work at. For instance, Tesla 0:05:57.640 --> 0:06:02.800 and SpaceX are heavily regulated and overseen by agencies including 0:06:02.960 --> 0:06:06.760 NITZA and the FAA, And these are things that Elon 0:06:06.880 --> 0:06:09.479 Musk has complained about, and he has said, Look, if 0:06:09.520 --> 0:06:11.200 I want to get the MARS, I need the shackles 0:06:11.200 --> 0:06:12.400 of regulation removed. 0:06:12.800 --> 0:06:14.000 But at the same time. 0:06:13.960 --> 0:06:17.520 People out there in the countryside really do benefit from 0:06:17.560 --> 0:06:20.719 those regulations when it comes to environmental protections, when it 0:06:20.720 --> 0:06:25.799 comes to other things that maybe breaks misbehavior in the markets, 0:06:25.800 --> 0:06:28.760 for example. So some of what he is seeking in 0:06:28.839 --> 0:06:33.120 terms of efficiency could actually create harms for people who 0:06:33.240 --> 0:06:36.839 don't have the same degree of insulation from some of 0:06:36.920 --> 0:06:40.120 life's inconveniences that the world's richest man does enjoy. 0:06:40.640 --> 0:06:43.960 Mike, it was said that Peter til reminded us to 0:06:44.440 --> 0:06:48.200 not take President electrom literally, but to take him seriously. 0:06:48.839 --> 0:06:51.360 Now do we take literally a cunt of at least 0:06:51.400 --> 0:06:54.359 two trillion dollars that Elon Musk said while out on 0:06:54.400 --> 0:06:57.880 the campaign stage, or is that more we take it seriously? 0:06:58.080 --> 0:06:58.760 The direction of. 0:06:58.720 --> 0:07:05.360 Travel, The direction of travel certainly is something to watch. 0:07:05.800 --> 0:07:09.280 But in terms of taking it seriously or literally, that 0:07:09.600 --> 0:07:13.120 is going to be a very difficult number to reach. 0:07:13.200 --> 0:07:13.960 And here's why. 0:07:14.080 --> 0:07:17.280 That is more than the government spends annually on operations. 0:07:17.320 --> 0:07:21.320 They simply can't find enough savings at all the agencies 0:07:21.720 --> 0:07:24.520 to be able to hit that number. You would have 0:07:24.560 --> 0:07:27.840 to start cutting into benefits that are considered sacred here, 0:07:27.880 --> 0:07:32.360 really Medicare, social Security, veterans aid, all of those things, 0:07:32.480 --> 0:07:36.840 and people out the voters who put Donald Trump in 0:07:36.880 --> 0:07:40.160 office would very quickly see the pain and feel the 0:07:40.160 --> 0:07:43.920 pain back home in their own lives. So it's more 0:07:44.000 --> 0:07:47.800 a direction of travel, more notional target. And again that 0:07:47.920 --> 0:07:51.480 was something he said at Madison Square Garden. Now putting 0:07:51.480 --> 0:07:54.520 that onto paper and making it a goal and over 0:07:54.600 --> 0:07:57.520 how long too, I mean two trillion dollars, maybe over 0:07:58.000 --> 0:08:01.720 ten years might be something a little bit more achievable, 0:08:01.880 --> 0:08:03.880 depending on what they decided to. 0:08:03.880 --> 0:08:07.760 Go after Bloomberg's Michael Shepard, thank you very much. Mike 0:08:07.920 --> 0:08:12.600 mentioned Knitzer the National Highway Traffic Safety Administration. This morning, 0:08:12.640 --> 0:08:17.880 that agency communicated a sixth recall via Tesla for the 0:08:17.920 --> 0:08:20.520 cyber truck, the six prequel they've done in the last 0:08:20.560 --> 0:08:21.480 twelve months. 0:08:22.200 --> 0:08:23.480 A physical defect. 0:08:23.760 --> 0:08:26.240 But again one of the agencies that one of Musk 0:08:26.280 --> 0:08:30.000 companies is subject to. The stock down one percent having 0:08:30.040 --> 0:08:33.200 opened significantly higher. Carro will keep an eye on it's 0:08:33.200 --> 0:08:35.640 important coming up what lies ahead for tech M and A. 0:08:36.000 --> 0:08:39.680 We speak with Sam Stovell of c RFRA what you got. 0:08:40.600 --> 0:08:42.080 Let's have a look at other earnings. 0:08:42.160 --> 0:08:45.760 Spotify decidedly higher, up more than nine percent, two and 0:08:45.800 --> 0:08:49.480 fifty two million paying subscribers, better than had been anticipated, 0:08:49.640 --> 0:08:52.640 six round and forty million monthly active users. And they've 0:08:52.679 --> 0:08:55.720 been cost cutting, stripping out people and it's proving itself 0:08:55.720 --> 0:09:00.160 in the margins. This is bloombog technology. 0:09:10.880 --> 0:09:14.760 We're waiting a potential outcome or comments from the meeting 0:09:14.840 --> 0:09:18.440 between President Biden and President elect Donald Trump at the 0:09:18.440 --> 0:09:20.800 White House. You see the images there of the White 0:09:20.800 --> 0:09:23.000 House in Washington, DC, and we will bring that to 0:09:23.080 --> 0:09:24.959 you as soon as we have it. In the meantime, 0:09:24.960 --> 0:09:27.520 Caroline much more in the financial markets when it comes 0:09:27.520 --> 0:09:27.880 to tech. 0:09:28.240 --> 0:09:30.040 When it comes to media stocks and M and A 0:09:30.360 --> 0:09:33.520 ed on again or off again, Direct TV intending to 0:09:33.600 --> 0:09:38.199 terminate its planned acquisition of Dish Network in ten days 0:09:38.240 --> 0:09:40.880 if bondholders don't agree to a dead exchange. Remember that's 0:09:40.960 --> 0:09:44.880 Echo Stars Dish TV bondholders we all turn our attention to. Meanwhile, 0:09:44.960 --> 0:09:47.680 Charter announced its planned to buy a Liberiting broadband in 0:09:47.679 --> 0:09:50.400 an all stock deal earlier today. There is so much 0:09:50.480 --> 0:09:53.920 focus post the election last week of what M and 0:09:53.960 --> 0:09:56.840 A means. Let's dig into it, Sam Stovell, chief Investment 0:09:56.840 --> 0:09:59.800 stratechers at CFRA, Look, M and A is happening, and 0:09:59.840 --> 0:10:02.160 A potentially been put on ice. What do you see 0:10:02.200 --> 0:10:04.480 for the next administration in terms of allowing M and 0:10:04.559 --> 0:10:07.800 A to become well more fervent here in the United States. 0:10:08.360 --> 0:10:10.960 Well, we certainly think that with the lifting of the 0:10:11.040 --> 0:10:16.840 regulations restrictions that that should be very beneficial to these 0:10:17.120 --> 0:10:20.719 companies involved in M and A, the asset managers and 0:10:21.360 --> 0:10:25.960 investment banks, et cetera. We recently raised prior to the 0:10:26.000 --> 0:10:29.920 election our outlook on KKR, But we also have strong 0:10:30.200 --> 0:10:35.319 investment recommendations on other companies like Black Rock, like Alliance Bernstein, 0:10:35.720 --> 0:10:39.520 et cetera. So our belief is that financials in general, 0:10:39.640 --> 0:10:43.199 but these type of companies in particular, should do well. 0:10:43.800 --> 0:10:46.200 Let's hone in a little bit more on the technology trade, 0:10:46.280 --> 0:10:49.920 and ultimately we're seeing risk on perpetuate whether you're looking 0:10:49.960 --> 0:10:52.480 at crypto, whether you're looking at Tezza down on the 0:10:52.559 --> 0:10:54.959 day but up significantly since the election results. 0:10:55.120 --> 0:10:56.880 Any areas of technology. 0:10:56.360 --> 0:10:58.760 That you think haven't been in the eye of the 0:10:58.800 --> 0:11:01.800 storm post election, Well. 0:11:02.080 --> 0:11:04.960 Obviously the eye of the storm really for tech is 0:11:05.000 --> 0:11:08.080 whether the mag seven is going to continue to be 0:11:08.160 --> 0:11:11.240 a leader, whether we are going to be seeing companies 0:11:11.720 --> 0:11:16.040 in the system software, the semiconductor area continue to lead 0:11:16.080 --> 0:11:19.320 the pack if they have, or whether we end up 0:11:19.360 --> 0:11:25.080 more with cybersecurity and other areas like that. So companies 0:11:25.120 --> 0:11:30.480 such as the geogroup, Core Civic, other companies in the 0:11:30.520 --> 0:11:33.760 defense area, especially if it has to do with security, 0:11:34.360 --> 0:11:35.760 we think will do fairly well. 0:11:36.720 --> 0:11:39.800 Sam, you wrote in your latest research titled Waves and 0:11:39.840 --> 0:11:42.920 Tides that this was all wrapped up pretty quickly the 0:11:42.960 --> 0:11:47.679 political process. When you think about the technology investors' perspective, 0:11:48.280 --> 0:11:50.720 what's the risk of a surprise going forward? Do you 0:11:50.720 --> 0:11:53.320 have a high degree of conviction that you understand the 0:11:53.320 --> 0:11:55.040 world we're now operating in. 0:11:56.559 --> 0:12:00.320 Well, we still have an overweight recommendation on tech. It 0:12:00.400 --> 0:12:03.360 is a group that shows the greatest growth potential in 0:12:03.400 --> 0:12:06.800 our opinion. In calendar years twenty four, twenty five, and 0:12:06.960 --> 0:12:09.959 twenty six, which is where most of our analysts are 0:12:10.000 --> 0:12:15.000 focusing their valuation attention. Certainly, near term tech looks a 0:12:15.000 --> 0:12:19.360 bit pricey. It's trading at a near sixty five percent 0:12:19.480 --> 0:12:23.800 premium to its longer term forward pe. That compares also 0:12:23.920 --> 0:12:27.480 with the forty percent premium we see in the market itself, 0:12:27.920 --> 0:12:31.360 numbers that rival where we were just before the eight 0:12:31.360 --> 0:12:34.120 and a half percent pullback in July of this. 0:12:34.160 --> 0:12:39.240 Year, Sam, do you need to be quickly in names 0:12:39.320 --> 0:12:39.920 like Tesla? 0:12:40.000 --> 0:12:42.000 If Mosk is going to have a role in this government. 0:12:43.320 --> 0:12:47.200 Well, we have a hold recommendation on Tesla, but I think, 0:12:47.320 --> 0:12:52.600 certainly knowing that he has not only the president alects Eir, 0:12:52.760 --> 0:12:56.640 but probably a spot in the guesthouse, that Tesla is 0:12:56.720 --> 0:12:58.920 something that is going to be in the news on 0:12:58.960 --> 0:13:00.559 a daily basis. 0:13:00.600 --> 0:13:03.960 Sound stoveall calling it. We thank you as cfra ed. 0:13:04.200 --> 0:13:05.160 What have we've got coming up? 0:13:05.920 --> 0:13:08.520 Yeah, we've got some news headlines coming up on the show. 0:13:08.559 --> 0:13:11.600 And first off, in Talking Tech in videos, Jensen Huang 0:13:11.679 --> 0:13:14.679 announces a huge partnership in Japan. 0:13:14.960 --> 0:13:15.520 Listen to this. 0:13:16.520 --> 0:13:18.280 I have a very big announcement to Mike. 0:13:21.480 --> 0:13:21.840 Today. 0:13:22.120 --> 0:13:28.160 We're announcing that we're partnering with SoftBank to bring and 0:13:28.240 --> 0:13:32.080 to build an AI infrastructure for Japan. 0:13:33.480 --> 0:13:36.400 And in Video's AI summit in Tokyo, Quang unveiled new 0:13:36.440 --> 0:13:40.120 plans for SoftBank's AI supercomputer build out. They're set to 0:13:40.200 --> 0:13:42.880 usefuse new Blackwell chips and we're part of a larger 0:13:42.920 --> 0:13:46.360 effort to create an AI grid that runs across Japan. 0:13:46.640 --> 0:13:50.480 Plus Apple's readying a smart home push. According to sources, 0:13:50.520 --> 0:13:52.880 the tech giant is set to announce a new command 0:13:52.960 --> 0:13:57.839 center wall mounted display to control appliances, handle video, and 0:13:57.960 --> 0:14:00.720 use AI to navigate apps. This is the company hopes 0:14:00.760 --> 0:14:03.240 to catch up with the likes of Alphabet and Amazon 0:14:03.480 --> 0:14:06.679 in the smart home space, and shares. 0:14:06.440 --> 0:14:10.080 Of just Eat are soaring. The food delivery company announced 0:14:10.080 --> 0:14:10.559 it will. 0:14:10.400 --> 0:14:13.600 Sell grub Hub to Mark Laws Wonder Group for an 0:14:13.720 --> 0:14:17.040 enterprise value of six hundred and fifty million dollars. Wonder 0:14:17.080 --> 0:14:18.960 will pay one hundred and forty two million dollars in 0:14:19.040 --> 0:14:22.640 cash and take on five hundred million dollars in Grubhub debt. 0:14:23.000 --> 0:14:23.440 The deal is. 0:14:23.440 --> 0:14:26.680 Expected to be completed during the first quarter of twenty 0:14:27.000 --> 0:14:27.640 twenty five. 0:14:27.760 --> 0:14:31.200 CARA, of course, the all important meeting which is currently 0:14:31.240 --> 0:14:34.320 occurring between President and Electrump going back to the White 0:14:34.320 --> 0:14:37.680 House to meet with President Biden a historic moment. 0:14:38.640 --> 0:14:41.120 Yeah, I mean this is unorthodox, but let's listen in 0:14:41.120 --> 0:14:43.080 to the comments that dis is tough. 0:14:43.720 --> 0:14:47.400 And it's many cases not a very nice world, but 0:14:47.800 --> 0:14:50.080 it is a nice world today, and I appreciate very 0:14:50.160 --> 0:14:54.040 much a transition that's so small it'll be as smooth 0:14:54.080 --> 0:14:55.240 as it can get. 0:14:55.880 --> 0:14:59.680 Very much appreciated that job you are, Thank you all. 0:15:00.840 --> 0:15:04.200 President elect Donald Trump meeting with President Biden in the 0:15:04.240 --> 0:15:08.480 White House carry the key line around politics being tough, 0:15:08.880 --> 0:15:13.680 but President elect Trump appreciating a peaceful transition, and the 0:15:13.720 --> 0:15:18.080 written correspondence very early following the election result also talked 0:15:18.120 --> 0:15:22.120 about peaceful transition from both President elect Trump's camp and 0:15:22.240 --> 0:15:25.960 also that of President Biden, who has already spoken with 0:15:26.040 --> 0:15:28.600 Trump more than once in recent days. 0:15:29.000 --> 0:15:34.120 The chaos of the political gaggle that currently groups itself, 0:15:34.320 --> 0:15:36.720 and for that historic moment, as you say, we really 0:15:36.760 --> 0:15:38.480 get to see how the sausage is made. From a 0:15:38.560 --> 0:15:40.960 media perspective, we also have an awful lot to do 0:15:41.040 --> 0:15:42.920 be discussing when it comes to artificial intelligence. 0:15:42.920 --> 0:15:44.840 What we do day in, day out on the show. 0:15:45.560 --> 0:15:48.400 Yeah, day in, day out, and is subject to change 0:15:48.480 --> 0:15:50.520 under this coming administration, but. 0:15:50.680 --> 0:15:52.200 The struggle is real. 0:15:52.400 --> 0:15:56.360 Open AI, Google and Anthropic, the key leading names are 0:15:56.400 --> 0:16:00.880 all facing roadblocks and seeing diminishing returns from their costly 0:16:00.960 --> 0:16:05.400 efforts to develop newer models. And these setbacks rights Bloomberg's 0:16:05.600 --> 0:16:10.200 Rachel Mets raised doubts about the heavy investment in AI 0:16:10.720 --> 0:16:15.680 and very feasibility of one day reaching so called artificial 0:16:16.160 --> 0:16:19.480 general intelligence. Bloomberg's Rachel Mets has been writing about this, 0:16:19.560 --> 0:16:21.720 and when we posted on social media that you were 0:16:21.720 --> 0:16:23.920 coming on, I was a bit surprised really by the 0:16:24.000 --> 0:16:27.680 number of questions and reaction. But if you could distill 0:16:27.760 --> 0:16:33.160 what the single challenges between those leading names, what is it. 0:16:33.160 --> 0:16:37.400 It sounds like bigger is not always better for the price, 0:16:38.160 --> 0:16:42.760 and data is increasingly becoming an issue having enough data, 0:16:42.800 --> 0:16:43.840 the right kind of data. 0:16:45.080 --> 0:16:48.440 It's really interesting, Rachel, that we've had sort of Samalmon 0:16:48.520 --> 0:16:51.640 discuss this, that it's become this weird Moore's law within 0:16:52.800 --> 0:16:55.240 AI general to AI that just the more you bombard 0:16:55.480 --> 0:16:57.560 the data, the more you throw at it, the more 0:16:57.600 --> 0:17:00.960 sophisticated the large language models have become. But does it 0:17:00.960 --> 0:17:04.320 feel like we're hitting a point here and add to 0:17:04.400 --> 0:17:06.840 your point, do we need more synthetic data. Is it 0:17:07.000 --> 0:17:10.119 any clear clarity coming from Anthropic or open AI as 0:17:10.160 --> 0:17:11.240 to what the limitations are. 0:17:12.440 --> 0:17:14.120 Yeah, I mean it sounds like there are some problems 0:17:14.119 --> 0:17:16.600 and there's also some solutions. Like this, This is not 0:17:16.640 --> 0:17:19.760 the end of the road RAI development, but what it 0:17:19.800 --> 0:17:21.760 does mean is that companies we should expect to see 0:17:21.800 --> 0:17:25.120 companies concentrating more on the kinds of things that they 0:17:25.160 --> 0:17:28.080 do later in the process of building these models, what's 0:17:28.160 --> 0:17:30.800 often known as post training, the things that they do 0:17:31.000 --> 0:17:33.920 to treat the models, fine tune them, get them ready 0:17:33.960 --> 0:17:36.760 to be released to the public. Open Ai released a 0:17:36.800 --> 0:17:40.080 model called one that does what it calls reasoning. This 0:17:40.240 --> 0:17:44.400 is doing some compute near the end of the process. 0:17:44.480 --> 0:17:46.800 I guess you would say. It takes in a prom 0:17:46.800 --> 0:17:50.199 from a user and then it does a bunch of 0:17:50.240 --> 0:17:53.560 calculations before it gives the result. So I would expect 0:17:53.560 --> 0:17:55.960 to see more of that. Sam Altman also recently talking 0:17:56.000 --> 0:17:59.680 in on Reddit about agents. We also know that Anthropic 0:17:59.760 --> 0:18:03.000 is an an agent. There's been some reporting that Google 0:18:03.200 --> 0:18:06.359 is working on a similar kind of thing, So I 0:18:06.359 --> 0:18:08.840 would expect that we see people working a lot more 0:18:08.920 --> 0:18:12.000 on later on in the process here. 0:18:12.680 --> 0:18:14.520 Maybe patients is what we're all going to have to 0:18:14.520 --> 0:18:17.199 have a little bit more of Rachel mess We appreciate it, 0:18:17.240 --> 0:18:20.600 Thank you so much. Meanwhile, sticking with large language models 0:18:20.640 --> 0:18:24.119 and actually language AI because the company deep L is 0:18:24.160 --> 0:18:26.240 releasing a pair of new features that are meant to 0:18:26.240 --> 0:18:29.040 help break down language barriers. One feature provides real time 0:18:29.080 --> 0:18:33.040 translated captions during virtual meetings. The other is targeted on 0:18:33.040 --> 0:18:36.200 one on one conversations happening in different languages as well. 0:18:36.240 --> 0:18:40.040 Here with more deep L CEO and founder Jerk Kurtilowski. 0:18:40.400 --> 0:18:43.200 Now, Jerk, just talk us through what these two. 0:18:43.320 --> 0:18:45.880 Products are that you're releasing and how different they are 0:18:45.920 --> 0:18:47.360 from what's already on the market. 0:18:48.720 --> 0:18:49.919 Yes, hi, Caroline. 0:18:50.280 --> 0:18:57.040 So deepel has been since twenty seventeen facilitating businesses to 0:18:57.200 --> 0:19:01.560 communicate much better with text translation. So think about the 0:19:01.600 --> 0:19:03.639 email that you want to send to a customer on 0:19:03.680 --> 0:19:06.720 the other side of the ocean, or think about document 0:19:06.840 --> 0:19:09.560 that you've just received which is in Japanese, and we've 0:19:09.600 --> 0:19:12.760 been helping our customers with that. And the next logical 0:19:12.960 --> 0:19:15.760 kind of frontier for us has been spoken language. 0:19:15.920 --> 0:19:17.159 Think of all of those. 0:19:16.920 --> 0:19:20.040 Meetings that you might be in where there is a 0:19:20.040 --> 0:19:23.679 person who doesn't understand English, and how can they follow, 0:19:23.720 --> 0:19:26.480 how can they be included that in that conversation. This 0:19:26.640 --> 0:19:29.040 is something that we're really focusing on right now. The 0:19:29.080 --> 0:19:33.080 second challenge out there, we have people who are kind 0:19:33.119 --> 0:19:35.560 of coming in into retail stores, coming maybe to a 0:19:35.560 --> 0:19:39.800 healthcare provider, and they have to they have to participate 0:19:39.840 --> 0:19:41.919 in a conversation in a language that they potentially do 0:19:41.960 --> 0:19:45.600 not know. Technology can solve that, and with the quality 0:19:45.640 --> 0:19:48.560 that we have that that improves it quite a lot. 0:19:49.359 --> 0:19:51.600 Yeah, in the context of the one on one conversation 0:19:51.720 --> 0:19:54.280 and translation, I'm so interested in that. You know, when 0:19:54.320 --> 0:19:57.600 I was at Medacan act frankly, I've seen it already done, 0:19:57.880 --> 0:20:01.200 but the form factor was the ray band, Meta smart glasses. Right, 0:20:01.200 --> 0:20:04.199 So Zuckerberg's on stage, he speaks in English that the 0:20:04.200 --> 0:20:07.680 person stood in front of him answered in Spanish, etc. Again, 0:20:07.760 --> 0:20:10.600 going kind of back to the carriage question, how is 0:20:10.640 --> 0:20:13.280 yours any different to what's been demonstrated already. 0:20:14.520 --> 0:20:16.280 Yeah, I think what we are doing here is we're 0:20:16.320 --> 0:20:20.639 applying the quality of textual translation that you bel is 0:20:20.800 --> 0:20:24.760 known in the market for, bringing in the security functionalities 0:20:24.800 --> 0:20:28.760 that we have. We are providing our services to a 0:20:28.760 --> 0:20:31.720 broad range of industries which are highly regulated, be it 0:20:31.880 --> 0:20:36.040 financial or legal, and bringing that now to the realm 0:20:36.160 --> 0:20:37.080 of voice translation. 0:20:38.240 --> 0:20:40.200 So security is your edge. 0:20:40.240 --> 0:20:43.320 Perhaps already the market that you own with certain clients 0:20:43.400 --> 0:20:47.600 is already your edge. Where next and how ultimately difficult 0:20:47.840 --> 0:20:50.520 is this, Yrek. We can all suddenly be like, oh, well, translation, 0:20:50.640 --> 0:20:53.359 and why do I am I not getting better and 0:20:53.440 --> 0:20:56.480 quicker and voice translation rather than it just written. But 0:20:56.600 --> 0:20:59.320 how difficult is this to train your latest large language 0:20:59.359 --> 0:21:01.440 models on the variety of languages out there. 0:21:02.880 --> 0:21:07.160 Spoken language is so much inherently more complicated than written language. 0:21:07.320 --> 0:21:11.760 It's just the sentences are much more unclear. There's like 0:21:12.160 --> 0:21:14.639 even finding out where the comma where the full stop 0:21:14.720 --> 0:21:17.800 is in a spoken sentence, it's it's It's much more complicated, 0:21:18.240 --> 0:21:22.320 and therefore the technology still has to develop over the 0:21:22.359 --> 0:21:24.920 next years to get to a level where we'll be 0:21:25.040 --> 0:21:28.480 fully confident in having those conversations. But already now for 0:21:28.560 --> 0:21:31.920 our customers this is bringing a lot of value in 0:21:32.040 --> 0:21:33.080 their daily lives. 0:21:34.400 --> 0:21:37.880 Deep l CEO and founder Yarak Kutilowski, thank you very much. 0:21:37.920 --> 0:21:40.080 I mean, look at how zoom change meetings around the world. 0:21:40.080 --> 0:21:43.359 Can you imagine simultaneous AI translation. 0:21:50.920 --> 0:21:53.040 Welcome back to Blue Bag Technology. I'm Caroline Hide in 0:21:53.040 --> 0:21:53.400 New York. 0:21:53.800 --> 0:21:57.000 Alamed Ludlow in San Francisco. President Elect Trump has met 0:21:57.040 --> 0:21:58.320 with President Biden. 0:21:58.560 --> 0:22:01.800 Also in Washington today is Ela Musk and we want 0:22:01.840 --> 0:22:03.960 to discuss his role in politics. We understand he's going 0:22:04.000 --> 0:22:06.840 to be meeting with House Republicans with Donald Trump a 0:22:06.920 --> 0:22:08.280 little bit later the President elect. 0:22:08.359 --> 0:22:09.760