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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive

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Speaker 1: from coast to coast with Caroline Hide in New York

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Speaker 1: and Eva Though in San Francisco.

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Speaker 2: This is Bloomberg Tech coming up.

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Speaker 3: In video says it's now getting orders from China and

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Speaker 3: ramping up sales of its.

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Speaker 2: H two hundred chips plus. In video, CEO.

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Speaker 3: Jason Warms says that Openclaw is quote definitely the next

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Speaker 3: chat ChiPT. I'll comment, there's Chinese AI stocks higher, and

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Speaker 3: we bring you in exclusive interview with the CEO of Kalshi.

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Speaker 3: That's after Arizona file criminal charges against the prediction market platform.

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Speaker 3: But first we check in on these public markets roiled

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Speaker 3: by geopolitics, by macro events, and we keep an eye

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Speaker 3: on what's happening terms of the stock market now is

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Speaker 3: that one hundred is off by five ten percent, the

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Speaker 3: SMP is lower after two straight days of and this

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Speaker 3: is as we see oil spral higher more than five

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Speaker 3: point five percent. This is a question of conflict in

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Speaker 3: the Middle East that seems to be accelerating, and we're

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Speaker 3: starting to see infrastructure continue to be targeted. That is

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Speaker 3: of course spiraling concerns about oil prices.

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Speaker 2: Now, all of this is an infratiory pressure.

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Speaker 3: On the back of PPI numbers today that show that

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Speaker 3: inflatory pressure is already.

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Speaker 2: Here in the United States. What will the Fed do

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Speaker 2: later today?

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Speaker 3: All eyes on macro policy at this moment, but there's

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Speaker 3: also all eyes on what's happening in terms of individual stocks.

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Speaker 3: And there is a macrotail at play when it comes

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Speaker 3: to in video and the demand for compute, and also

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Speaker 3: what's happening with China demand signals actually a sign off

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Speaker 3: from the Chinese government at least, we're starting to see

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Speaker 3: a bit more of an appetite for buying into Invidia stocks.

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Speaker 3: As GtC continues, let's just get more context on the

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Speaker 3: market moves. What's happening with Nvidia? Bloomberg Carmen, Ryanikey joins us.

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Speaker 3: Look in video is one of the few names that

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Speaker 3: pushes to the green today, alongside the likes of Micron

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Speaker 3: and others. Carmen, How is Nvidia able to shake off

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Speaker 3: what for the rest of the market is angst about

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Speaker 3: the Middle East and inflation.

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Speaker 4: Yeah, I mean, it really seems like investors are getting

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Speaker 4: a little bit more confident with Invidia here. I think

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Speaker 4: that Jensen has said a lot during this conference that hopefully,

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Speaker 4: you know, making people feel a little bit more confident.

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Speaker 4: I mean, the orders from China is very positive, something

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Speaker 4: that investors have been looking for for a long time

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Speaker 4: from Nvidia, and he also said yesterday that they are

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Speaker 4: looking at a very large number to go into buybacks,

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Speaker 4: and you know, the dividend for Invidia. So I think

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Speaker 4: these are all things that are positive and are maybe

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Speaker 4: helping the stack sort of shake off some of those

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Speaker 4: macro pressures that we're seeing really way down the rest

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Speaker 4: of the market.

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Speaker 3: What have been extraordinary is that one trillion dollar figure

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Speaker 3: initially said didn't spur any absolute buying, but then he's

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Speaker 3: trying to articulate that that one trillion can then be

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Speaker 3: added to other new products.

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Speaker 2: That are coming to the market.

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Speaker 3: Is well likely to inject upside to that number.

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Speaker 4: Yeah, exactly, and I think that upside is really important.

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Speaker 4: He did clarify a very specific that doesn't include you know,

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Speaker 4: the new products that are coming out, so you know,

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Speaker 4: a lot of the positivity I think is baked into

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Speaker 4: the stock, but that potential for future growth, which is

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Speaker 4: what everybody you know expects from in video, but he

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Speaker 4: wants to see even more of is really positive here,

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Speaker 4: especially when we're seeing a backdrop that has so much

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Speaker 4: uncertainty for the rest of the market. And you know,

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Speaker 4: I mean in Video is still the biggest stock in

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Speaker 4: the s and P five hundred, So seeing you go

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Speaker 4: up when sort of the rest of the market goes

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Speaker 4: down is significant because if you're selling the SMP, you know,

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Speaker 4: you're also selling a lot of in video.

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Speaker 3: A just of course speaks in big numbers talking about

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Speaker 3: how computing demand has increased by one million times in

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Speaker 3: the last two years. But he's pushing forward on where

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Speaker 3: next for compute and that's going to be driven by

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Speaker 3: a gender ki. You saw his adoption of this chatchypd

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Speaker 3: moment for Openclore really helping Chinese names.

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Speaker 2: Is it going to have a read across to the US.

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Speaker 4: You know, that's something we're definitely looking for, and I mean,

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Speaker 4: I guess it sort of means to be seen. You know,

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Speaker 4: we know that, you know, in Vidia does definitely moves

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Speaker 4: you know, stocks of other companies that are related, and

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Speaker 4: we see that on a global scale. So you know,

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Speaker 4: we've seen through GtC, you know, companies that have partnerships

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Speaker 4: with Nvidia get some investor confidence through some buying into

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Speaker 4: their their stock. It's seen no reason why we wouldn't

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Speaker 4: see more buying into certain US companies sort of based

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Speaker 4: on this news. And you know, going forward there.

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Speaker 3: I've already seen stain analysts trying to talk about the

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Speaker 3: companies that will be benefited by claw open claw the

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Speaker 3: CLAW six. We'll see if that catches on Bloomberg's common Ryanikey,

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Speaker 3: thank you very much. Indeed, now in Vidia CEO does,

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Speaker 3: and Wang was indeed articulating this projection for a trillion

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Speaker 3: dollars plus in AI chip sales and the fact that

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Speaker 3: of course it doesn't include other product offerings. Now we've

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Speaker 3: already got the signal of the upside Bloomberg Intelligence noting

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Speaker 3: that this reinforces confidence in AI demand through twenty twenty seven.

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Speaker 2: And in Vidia's market leadership.

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Speaker 3: Let's get more on that with Kim Forest's CIO of

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Speaker 3: Boka Capital Partners. Look, we're used to Jenson Wang being optimistic.

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Speaker 3: Are you buying into it, Kim?

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Speaker 2: Kind of?

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Speaker 5: Sort of?

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Speaker 6: I mean, he really is the poster child of AI

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Speaker 6: buildout right, And for the longest time until this GtC,

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Speaker 6: we've all made the assumption that this is going to

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Speaker 6: happen at large data centers, and that is the who

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Speaker 6: the company was serving. Probably the hidden gem in his

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Speaker 6: comments were that only sixty percent of the chips that

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Speaker 6: they're selling right now are going towards those large data centers.

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Speaker 6: But then corporations who are trying to figure out maybe

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Speaker 6: developing some in house you know, uses of this are

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Speaker 6: now buying their products. And I think that's really interesting

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Speaker 6: and kind of takes a little pressure off of the

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Speaker 6: company because it isn't solely dependent on you know what Core,

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Speaker 6: We even Microsoft and you know the rest of the

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Speaker 6: gang are buying.

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Speaker 3: That is not just about GPUs, CPUs, even LPUS is

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Speaker 3: actually about the software side. How much did you pay

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Speaker 3: attention to Nemo claw, for example, the way in which

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Speaker 3: seems as though Jensen one's trying to get in on

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Speaker 3: the enterprise desire to have safe agenda KI.

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Speaker 6: Right, And I you know, I talked to a lot

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Speaker 6: of people in my job, and I have heard more

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Speaker 6: and more companies rolling out agentic services for their employees,

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Speaker 6: making them more productive. Now you know what the spending

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Speaker 6: on that is going to be. It's anyone's guess. I

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Speaker 6: am going to point back to the dot com Era,

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Speaker 6: which it wasn't just about pets dot com and stamps

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Speaker 6: dot com and all that kind of goofy stuff. But

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Speaker 6: rolled into that was the Y two K conversion that

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Speaker 6: a lot of companies were undergoing. And one of the

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Speaker 6: flaws and thinking by investors during that time was that

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Speaker 6: spending was going to go on in perpetuity. What companies

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Speaker 6: were spending on it for that Y two K conversion

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Speaker 6: was thought to, you know, it will bloom and blossom

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Speaker 6: into other areas, and it didn't happen. And I think

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Speaker 6: this is a warning for this technology as well. I've

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Speaker 6: seen some really goofy estimates that you know, companies are

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Speaker 6: going to be spending on this, you know, in perpetuity

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Speaker 6: in the trillions, and that's really not how technology works.

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Speaker 6: People want an end to it, and they just want

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Speaker 6: to use the build out and they just want to

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Speaker 6: use the technology for productivity. So investors beware, well how

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Speaker 6: of them?

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Speaker 3: For should the warnings to investors be about im perpetuity

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Speaker 3: the pricing of memory going at a higher At the moment,

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Speaker 3: we seem to be getting endless calls that this is

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Speaker 3: going to be at least until maybe twenty thirty, but

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Speaker 3: there's got to be demand destruction and that's going to

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Speaker 3: be focused on in Micron's numbers after the bell exactly.

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Speaker 6: And Micron is a really great example of this, right

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Speaker 6: because they had been participating and I'd love to say

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Speaker 6: this world oligopoly about six companies that were making land

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Speaker 6: and dram memory, right and what would happen was somebody

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Speaker 6: would bring on a new supply and that would just

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Speaker 6: kill nand prices because it was kind of a commodity. Well,

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Speaker 6: even though high bandwidth memory is you know, a gating

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Speaker 6: factor now for a lot of these build ai buildouts,

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Speaker 6: at some point, you know, we're going to go back

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Speaker 6: into that boom bust cycle even though it's exotic and

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Speaker 6: in demand. So I think that Micron just announced that

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Speaker 6: they're adding capacity to a Taiwan plant, and you know,

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Speaker 6: look for the other players in this area to start

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Speaker 6: doing that as well. And again it's going it's not

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Speaker 6: going to go upwards to the right like it has

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Speaker 6: been the demand or the pricing, you know, because we're

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Speaker 6: going to have supply demand here entering into this. And

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Speaker 6: these are even a smaller oligopoly of about three players

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Speaker 6: right now that are making this high bandwidth memory.

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Speaker 3: How much these stopped price sing in Already the enthusiasm here, Kim,

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Speaker 3: because we're seeing MI chron rally into its numbers. Are

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Speaker 3: people already expecting just killer results?

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Speaker 2: And can that? What more? Can the CEO already talk about?

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Speaker 6: Absolutely? I mean they are expecting killer results, but the

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Speaker 6: physical world is going to impact their their you know

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Speaker 6: results too, because there's only you can only ship what

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Speaker 6: you make and they are running up everybody in this

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Speaker 6: industry is running up against you know, supply problems and

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Speaker 6: you can see that as the chip builders are complaining

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Speaker 6: about it. So I would be I am very enthusiastic

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Speaker 6: about my crime For the long haul, I think they're

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Speaker 6: a great company, but in the short term, I wonder

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Speaker 6: can they ship enough to satisfy investors demand? And I

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Speaker 6: guess tonight we'll see.

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Speaker 3: We've also seen perhaps a slight quantening of the anxiety

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Speaker 3: around the AI trade, just from a can we afford it?

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Speaker 2: Will it? Really?

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Speaker 3: Do we need this level of data center build out perspective?

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Speaker 2: Kim?

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Speaker 3: Where is the anxiety right now for you? When it

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Speaker 3: comes to the still optimism we see baked into the

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Speaker 3: stock market.

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Speaker 6: Sure well, I have some real questions about how much

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Speaker 6: capacity is needed. While I'm a huge bull on AI,

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Speaker 6: I understand what it can do, I am not still

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Speaker 6: convinced that large language models are the way forward forever

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Speaker 6: and ever.

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Speaker 2: Amen.

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Speaker 6: I think they've done wonderful things in solving natural language processing,

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Speaker 6: but I don't know that that is what we're going

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Speaker 6: to do in let's say five years. So my fear

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Speaker 6: still is that we are building our investors are building

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Speaker 6: their expectations on what they know today, and I think

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Speaker 6: things can change very very quickly with innovations like I

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Speaker 6: don't know, open Claw or whatever it is. You know

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Speaker 6: where I'm sure where companies using worst profiting power and

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Speaker 6: getting more being from.

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Speaker 2: The bark unpredictability in the stock market.

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Speaker 3: That's exactly what Howard Marks is calling out today when

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Speaker 3: it comes to AI. Kim Forrest, CIO of Booker Capital Partners, Great.

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Speaker 2: To have some time with you. Now.

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Speaker 3: Coming up, we're going to be speaking with Tarik Mansur

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Speaker 3: Cal she CEO and co founder has after Arizona filed

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Speaker 3: criminal charges against the Prediction market platform one.

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Speaker 2: Next this is bluembed Tech.

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Speaker 3: Arizona has filed criminal charges against CALS, accusing the company

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Speaker 3: of operating an illegal gambling business.

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Speaker 2: So next, Tim Stenovich.

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Speaker 3: Joins us now and Kaoshi Kofanna and CEO Tim take

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Speaker 3: it away.

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Speaker 5: Hi, We're joined by Tarak Monsieur. He's the CEO and

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Speaker 5: co founder of Call She. Tarak, good to see you.

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Speaker 5: Thanks for joining us on this. Look, even though other

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Speaker 5: state regulators have taken steps to crack down on what

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Speaker 5: they say is unlicensed betting on call She's site, Arizona

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Speaker 5: appears to be the first to escalate to criminal charges.

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Speaker 5: What is your response to these charges?

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Speaker 7: Look, I mean, these charges have nothing to do with

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Speaker 7: gambling or the merits. If it was about gamling or

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Speaker 7: the merits, they would let the judicial process fright its

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Speaker 7: course in the federal courts. You know, five days ago

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Speaker 7: on Thursday, CALCI filed suit against Arizona and federal courts

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Speaker 7: on the mets on whether Calshi is subject to exclusive

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Speaker 7: jurisdiction of the CFTC. And you know, we're confident opposition

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Speaker 7: and wanted to let the court process play out. And

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Speaker 7: instead of letting that happen, the Arizona Attorney General decided

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Speaker 7: to subvert the judicial process and weaponize it and go

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Speaker 7: to state court and file these criminal charges, which you

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Speaker 7: know we view as merit lists and basis. We see

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Speaker 7: this as a total overstep and we look forward to

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Speaker 7: fighting it in court.

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Speaker 5: Well, experts are saying this could be the first of

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Speaker 5: many charges such as these from other states too. How

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Speaker 5: does it change your legal strategy.

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Speaker 7: Well, this is the whole point of federal preemption. So

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Speaker 7: this is not about camera. The charges that the Attorney

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Speaker 7: General filed are not about gambling. They're not even about

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Speaker 7: sports only. They're about prediction markets writ large. It's just,

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Speaker 7: you know, attacking the entire business model. And nothing prevents

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Speaker 7: from the same attorney general or others from fighting the

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Speaker 7: same criminal charges against derivatives' markets writ large. They could

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Speaker 7: file the same exact charges under the same analysis against

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Speaker 7: CME or ICE or NASDAC. And that's the whole point

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Speaker 7: of federal regulation of these financial exchanges is to prevent

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Speaker 7: this sort of chaos and these sort of attacks on

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Speaker 7: these businesses that could be political in nature or other.

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Speaker 7: And that's a very important distinction.

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Speaker 5: Well, I read the charging document from the Attorney General

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Speaker 5: as twenty charges. They're mostly about betting and wagering. When

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Speaker 5: it comes to sports, there's some election stuff in there.

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Speaker 5: Would you ever consider limiting your business in Arizona or

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Speaker 5: other states, to things that these ags don't seem to

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Speaker 5: have problems with, like economic data, the price of bitcoin,

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Speaker 5: what markets are going to do predictions around those things.

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Speaker 7: Look, I mean the AGE also claim that we have

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Speaker 7: war markets, which is incorrect. It's either flat out to

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Speaker 7: lie or it's misinformed take which is unfortunate for someone,

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Speaker 7: you know, filing criminal charges against the company. What's more

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Speaker 7: important here, again is this is not about the merits.

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Speaker 7: If it's about the merits, let's let the judicial process

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Speaker 7: run its course in federal courts. This is about something

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Speaker 7: other than the merits, which is what I'm focused on.

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Speaker 7: I don't know what the AGE is focused on, but

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Speaker 7: you know she is off for reelection.

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Speaker 5: You know, it does.

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Speaker 7: It did some press, It does seem to be making

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Speaker 7: some buzz. But what I'm really focused on is building

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Speaker 7: a great product from lens of customers, out of which

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Speaker 7: goes to four hundred thousand are in Arizona and fighting

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Speaker 7: any of these basis cases in courts, which was which

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Speaker 7: we're going to continue doing.

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Speaker 5: So you're fighting the cases. As I mentioned, Arizona is

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Speaker 5: not the only state to take issue with your business.

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Speaker 5: What happens. Ultimately, if courts do side with states, what

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Speaker 5: does it mean for the future of your company.

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Speaker 7: We believe in the rule of law. Right, we will

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Speaker 7: always abide by court decisions. The law applies to us,

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Speaker 7: but it also applies to the government, including state governments,

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Speaker 7: and then it's a very important thing.

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Speaker 3: Right.

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Speaker 7: This is really not about our business model. Again, if

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Speaker 7: it was about our business model, we would be focused

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Speaker 7: on the federal courts and the lawsuit about the merits.

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Speaker 7: This is a broader attack, and you know many states

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Speaker 7: have sided with us and have granted us a preliminary

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Speaker 7: in junction, agreeing with our legal analysis. We have spent

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Speaker 7: four years getting regulated by the federal government, and we

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Speaker 7: have a federal government in the CFTC that is coming

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Speaker 7: strongly in favor of our position. Following these charges is

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Speaker 7: a total total overstep and an overreach from an AG

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Speaker 7: that's up for re election, and we find that unfortunate.

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Speaker 7: But we will stay focused on what we do best,

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Speaker 7: which is building a great product.

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Speaker 5: So certainly the CFTC. We know where the CFTC stands,

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Speaker 5: and we know where Michael Mike Seelig stands on this.

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Speaker 5: We don't know where courts stand on this, and I'm

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Speaker 5: wondering if we see a state like Nevada, for example,

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Speaker 5: block access to your business, what will you do? Will

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Speaker 5: you continue to operate or will you will you say, Okay,

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Speaker 5: we're not going to operate in Nevada.

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Speaker 7: Well, first of all, let's get let's get to that point,

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Speaker 7: and you know, we'll have to make a decision as

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Speaker 7: the company what we do. What I can reiterate is

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Speaker 7: we will one hundred percent abye by the law. That's

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Speaker 7: what we will do as a company. It's always been

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Speaker 7: our position. That's why we spend four years getting regulated upfront,

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Speaker 7: regulatory first as a company and always abide by the law.

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Speaker 7: But what I always say, the law applies to us

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Speaker 7: as much as it applies to the government, and when

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Speaker 7: government oversteps the law and goes out of bound, we're

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Speaker 7: going to fight that in court, which we look forward to.

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Speaker 5: How long does that process take, because it seems like

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Speaker 5: there's a regulatory limbo happening. You're you're it's almost like

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Speaker 5: your legal team is going to have to play whack

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Speaker 5: a mole with all these states that are that are

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Speaker 5: filing suit or bring in criminal charges. How long is

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Speaker 5: this going to take?

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Speaker 7: And gladly we have a legal team to handle these

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Speaker 7: types of things, and we're going to be focused on

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Speaker 7: and you know, maybe it's a question for them. I mean, look,

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Speaker 7: whatever whatever long it takes, we're going to fight for

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Speaker 7: prediction markets. I spent eight years building this company, four

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Speaker 7: out of which have which are getting regulated upfront. I

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Speaker 7: really believe in this marketplace. I'm very excited about the

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Speaker 7: growth that we're seeing some of the fast growing company

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Speaker 7: companies in America right now. And so what I'm going

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Speaker 7: to be focused on is keep building a great product,

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Speaker 7: and that's what's sort of most important for me. The

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Speaker 7: more important sort of question is, you know, when it

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Speaker 7: comes to this is not really about you know, whether

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Speaker 7: this is gambling or not. This is not really about

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Speaker 7: state versus federal which are both co existing and both growing,

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Speaker 7: both models. This really is turning into sort of some

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Speaker 7: special interests that like the status quo. The status always

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Speaker 7: work very well for monopolies, but not for the consumers

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Speaker 7: that are flocking to prediction markets right now, which we're

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Speaker 7: going to keep fidding for Tark.

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Speaker 5: There is this perception though that people think this is gambling.

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Speaker 5: An IPSOS survey from just a few weeks ago, for example,

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Speaker 5: show sixty one percent of adults safe prediction market trading

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Speaker 5: is closer to gambling. Eight percent say it's closer to investing.

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Speaker 5: So there is this public perception that doesn't necessarily match

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Speaker 5: with what you say. The platform is how do you

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Speaker 5: respond to that and how do you at all that? Like,

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Speaker 5: how is this not gambling?

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Speaker 7: I haven't really looked at these polls, you know. The

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Speaker 7: thing I will say is there's always been a battle

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Speaker 7: of whether financial derivatives are gambling. Great features were called

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Speaker 7: gambling and the eighteen hundreds, and there was a Supreme

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Speaker 7: Court decision that you know, said even though there is speculation,

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Speaker 7: these you know, products have financial our structures the financial markets,

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Speaker 7: and thus are going to fall under financial market jurisdiction.

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Speaker 7: So I always say this, you know, whether something feels

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Speaker 7: and looks like gambling doesn't necessarily make it gambling. Speculation

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Speaker 7: exists in all financial markets. If we're going to take

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Speaker 7: a line that speculation is gambling, then the stock market

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Speaker 7: with retail participation is gambling. Then buying options for retail

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Speaker 7: or zero data to expier options is gammling. Then retail

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Speaker 7: buying crypto is gambling. The more important line in the

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Speaker 7: historical line that we've been taking under the law, but

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Speaker 7: also you know, as you think about it societally. Is

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Speaker 7: is the business model a gambling business model, which is

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Speaker 7: a model where the revenue of the business and the

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Speaker 7: profits are equal to the customer's losses, in which case

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Speaker 7: the incentive is to promote more losses and blog the winners.

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Speaker 7: Or is it an open, free and fair marketplace where

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Speaker 7: people can enter in and out freely and transparently, which

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Speaker 7: is a financial exchange, which Calci falls under.

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Speaker 5: Tark monsieur Calci, co founder and CEO. Tark always good

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Speaker 5: to speak with you. Thanks so much for joining us, Caroline,

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Speaker 5: back to you.

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Speaker 3: Fantastic interview, Tim, thanks for bringing it. The Trump administration

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Speaker 3: is dialing up efforts to oust Anthropic from all federal agencies,

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Speaker 3: saying the US government has reason to question whether the

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Speaker 3: AI firm is a trusted partner after the company asked

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Speaker 3: for limits on how its technology was used by the

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Speaker 3: Department of Defense. Let's get the latest on this saga

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Speaker 3: of Boomberg's AI reporter Rachel Metz. This is now not

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Speaker 3: just in the public court of the media. This is

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Speaker 3: going to the actual court for a fight out.

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Speaker 8: Yeah. So as part of this fight between the Anthropic

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Speaker 8: and the federal government, the Anthropic has filed to Las

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Speaker 8: suits and the one in California has a lot of

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Speaker 8: action happening. Yesterday, the federal government said we are going

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Speaker 8: to fight. We think that Inthropics technology became an unacceptable

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Speaker 8: risk essentially to the military because Anthropic would not agree

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Speaker 8: with a change to its contract that the military wanted

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Speaker 8: earlier this year.

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Speaker 3: Emil Michael he's the US Undersecretary of Defense for Research

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Speaker 3: and Engineering, and it has really sort of been the

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Speaker 3: public voice of this, and he's talking about how there

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Speaker 3: was hostility thrown around by Anthropic during the negotiations he

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Speaker 3: feels and the fear it seems to be is that

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Speaker 3: in some way the technology can be manipulated if it

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Speaker 3: remains within federal use. Anthropic, if it feels as red

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Speaker 3: lines across, could just go in there and change the

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Speaker 3: way in which the technology works. It's going to be

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Speaker 3: grounds for this, Rachel as a legal argument.

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Speaker 8: I mean, I think that that is really alarming sounding, right,

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Speaker 8: Like the idea that if you could be using technology

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Speaker 8: in a war fighting situation and then the company that

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Speaker 8: has built the technology could do something about it. For

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Speaker 8: Nanthropics part, they said in a statement Dario Amida, Anthropics

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Speaker 8: CEOs and a statement in February, the company has never

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Speaker 8: done something like that, and really what the company wants

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Speaker 8: is just some specific limits on how its technology is deployed,

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Speaker 8: while the military is saying we want to be able

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Speaker 8: to use that technology for any lawful purpose, something that

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Speaker 8: Anthropic it alleges refused to accept due to its usage

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Speaker 8: policies for Claude.

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Speaker 3: Really they're talking about their long standing commitment to harnessing

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Speaker 3: AI to protect our national security. Is what Anthropics saying.

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Speaker 3: How is this affecting or could affect the business?

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Speaker 2: Briefly, Rachel, It's.

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Speaker 8: Sort of affect could affect it in two different ways.

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Speaker 8: On the one hand, this has seemed to be a

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Speaker 8: huge boost for Anthropic, especially as a consumer product, which

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Speaker 8: typically it is not thought of as a consumer product

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Speaker 8: miss chatbot Claude, but that app has gotten extremely popular,

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Speaker 8: big boost in popularity. And at the same time, the

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Speaker 8: company says this could be hundreds of millions or even

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Speaker 8: billions of dollars in damage, and it's cited in a

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Speaker 8: court filing last week some specific ways that it's already

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Speaker 8: starting to harm the company financially.

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Speaker 3: Racial mets on their latest with Anthropic and the Pentagon.

439
00:22:24,960 --> 00:22:25,760
Speaker 2: We appreciate it.

440
00:22:31,880 --> 00:22:33,960
Speaker 3: Welcome back to Bloomberg Tech. We check in on these markets,

441
00:22:34,000 --> 00:22:36,520
Speaker 3: which in many ways are in the eye of a

442
00:22:36,600 --> 00:22:39,560
Speaker 3: geopolitical storm, a macrostorm, with of by five ten percent

443
00:22:39,560 --> 00:22:42,359
Speaker 3: on the Nasdaq one hundred. More broadly, stocks have turned lower,

444
00:22:42,400 --> 00:22:44,280
Speaker 3: and the S and P five hundred because Brent crude

445
00:22:44,280 --> 00:22:45,160
Speaker 3: is on the higher side one.

446
00:22:45,040 --> 00:22:45,840
Speaker 2: Than five percent high.

447
00:22:46,040 --> 00:22:48,080
Speaker 3: The conflict with the Middle East, within the Middle East

448
00:22:48,440 --> 00:22:51,600
Speaker 3: seems to be well worsening rather than coming to any

449
00:22:51,600 --> 00:22:55,840
Speaker 3: near conclusion. We're currently seeing there for inflationary pressure. Me

450
00:22:56,000 --> 00:22:58,400
Speaker 3: the key concern for the market. PPI reading is coming

451
00:22:58,440 --> 00:23:00,639
Speaker 3: in today showing that there's inflation pressure even before the

452
00:23:00,640 --> 00:23:01,720
Speaker 3: conflict erupted in some.

453
00:23:01,800 --> 00:23:02,760
Speaker 2: Nineteen days ago.

454
00:23:02,960 --> 00:23:05,359
Speaker 3: And we look towards what the Federal Reserve will do

455
00:23:05,400 --> 00:23:07,760
Speaker 3: in response that meeting today, we're not expecting any change

456
00:23:07,800 --> 00:23:10,240
Speaker 3: in rates per certainly a conversation to be had with

457
00:23:10,280 --> 00:23:11,760
Speaker 3: a Fed chair. Let's move on and have a look

458
00:23:11,760 --> 00:23:13,840
Speaker 3: at what tech stocks are doing, because in a monst

459
00:23:13,880 --> 00:23:15,880
Speaker 3: a's that one hundred, which is down. We're actually saying

460
00:23:15,880 --> 00:23:17,520
Speaker 3: in video trying to do its best in the green

461
00:23:17,640 --> 00:23:19,919
Speaker 3: We're up three tenths of a percent. Now, this is

462
00:23:19,920 --> 00:23:23,560
Speaker 3: as we have some extraordinary dictations coming from the CEO

463
00:23:23,640 --> 00:23:26,800
Speaker 3: Jensen Wan, who's talking about this moment in open Claw,

464
00:23:26,840 --> 00:23:29,040
Speaker 3: the fact that we've got a new chat ChiPT on

465
00:23:29,119 --> 00:23:31,280
Speaker 3: our hands in the world of agentic Ai.

466
00:23:31,440 --> 00:23:33,280
Speaker 2: It is driving those words.

467
00:23:33,040 --> 00:23:36,719
Speaker 3: Driving Chinese stocks in particular Minimax up almost twenty percent

468
00:23:36,960 --> 00:23:40,000
Speaker 3: as they release you agentic Ai tools for its user base.

469
00:23:40,160 --> 00:23:42,239
Speaker 2: Jupu is up almost twenty percent as well. Look, these

470
00:23:42,240 --> 00:23:43,680
Speaker 2: are record highs at the.

471
00:23:43,600 --> 00:23:47,760
Speaker 3: Moment due to open Claw frenzy that has beset the

472
00:23:47,920 --> 00:23:51,399
Speaker 3: entire Chinese world alike. Look, let's stick more broadly with

473
00:23:51,520 --> 00:23:54,280
Speaker 3: Chinese stocks, because another giant that has been betting on

474
00:23:54,280 --> 00:23:57,440
Speaker 3: the use of open Claw style agents is ten Cent,

475
00:23:57,800 --> 00:24:00,119
Speaker 3: which actually just released its earnings results showing that how

476
00:24:00,119 --> 00:24:02,680
Speaker 3: many plans to at least double its investments in ai

477
00:24:02,920 --> 00:24:03,880
Speaker 3: in twenty twenty six.

478
00:24:04,080 --> 00:24:05,680
Speaker 2: Please just say here in New York.

479
00:24:05,520 --> 00:24:08,200
Speaker 3: For the time, banks, blux ages, stop reporter if you

480
00:24:08,280 --> 00:24:09,240
Speaker 3: can on Lee.

481
00:24:09,040 --> 00:24:10,680
Speaker 2: Great to have you here for a couple of months.

482
00:24:10,720 --> 00:24:13,040
Speaker 3: You can talk to us a little bit about ten

483
00:24:13,119 --> 00:24:14,359
Speaker 3: Cent and what they said on the numbers.

484
00:24:14,560 --> 00:24:17,040
Speaker 9: Yeah, I think there are three key takeaways from their

485
00:24:17,040 --> 00:24:19,240
Speaker 9: earnings this morning. I think number one is this top

486
00:24:19,280 --> 00:24:22,800
Speaker 9: line crows. It said thirteen percent sales crows for the

487
00:24:22,840 --> 00:24:27,040
Speaker 9: December quarter, which is its fifth straight quarterly results those

488
00:24:27,119 --> 00:24:29,520
Speaker 9: posting double digit curls and that was in line with

489
00:24:29,600 --> 00:24:32,600
Speaker 9: expectation thanks to its advertisement and gaming department. So I

490
00:24:32,600 --> 00:24:34,639
Speaker 9: think that's the first key takeaway. And the secondly and

491
00:24:34,720 --> 00:24:37,879
Speaker 9: more importantly is AI investment. The company is that is

492
00:24:37,960 --> 00:24:40,399
Speaker 9: going to double is AI investment and that's going to

493
00:24:40,520 --> 00:24:43,200
Speaker 9: cause some share buy back. So company is going to

494
00:24:43,240 --> 00:24:45,640
Speaker 9: scale back the share buy back so we can bank

495
00:24:45,760 --> 00:24:48,719
Speaker 9: roll the AI investment that's going to at least double

496
00:24:49,000 --> 00:24:51,679
Speaker 9: this year. And I think thirdly a third takeaway is

497
00:24:51,680 --> 00:24:53,840
Speaker 9: actually the company is mentioned of the open cloud. The

498
00:24:53,880 --> 00:24:57,119
Speaker 9: company mentioned how it's going to use open cloud and

499
00:24:57,119 --> 00:25:00,800
Speaker 9: how it's going to help the company's as strategy using

500
00:25:00,800 --> 00:25:03,440
Speaker 9: the open class. So the company's CEO, Puny Mass set

501
00:25:03,760 --> 00:25:07,159
Speaker 9: open Claw is actually an inspiration, great inspiration for the

502
00:25:07,200 --> 00:25:10,720
Speaker 9: companies reach out related ecosystem and it also said is

503
00:25:10,800 --> 00:25:13,359
Speaker 9: helping ten Cent leverages cloud computing.

504
00:25:13,880 --> 00:25:15,320
Speaker 2: So the mention of the open.

505
00:25:15,119 --> 00:25:18,280
Speaker 9: Claw topline growth is doubling of the AI investment. These

506
00:25:18,280 --> 00:25:21,200
Speaker 9: are the key takeaways from this tencent earning this morning.

507
00:25:21,280 --> 00:25:24,119
Speaker 3: It's so fascinating because here open Cloor is sort of

508
00:25:24,240 --> 00:25:27,600
Speaker 3: a developer phenomenon, but in China and Asia it's a

509
00:25:27,640 --> 00:25:31,880
Speaker 3: consumer phenomenon. It's desire to see agent Kai autonomous agents

510
00:25:32,080 --> 00:25:34,320
Speaker 3: used in your personal life. How are other giants like

511
00:25:34,359 --> 00:25:36,520
Speaker 3: Ali Baba thinking about this as we look towards their

512
00:25:36,560 --> 00:25:37,480
Speaker 3: earnings coming out?

513
00:25:37,600 --> 00:25:40,600
Speaker 9: Yeah, absolutely so Ali Baba is reporting their earnings on

514
00:25:40,680 --> 00:25:43,400
Speaker 9: Thursday before before the market US time.

515
00:25:43,520 --> 00:25:44,200
Speaker 2: I think there are.

516
00:25:44,200 --> 00:25:47,239
Speaker 9: Several things that investors are looking forward to. I think

517
00:25:47,320 --> 00:25:50,639
Speaker 9: number one is investment plan on and the monetization flavor

518
00:25:50,720 --> 00:25:53,960
Speaker 9: is artificial intelligence. Overnight, we heard from Ali Baba that

519
00:25:54,040 --> 00:25:56,840
Speaker 9: is going to hide the prices of its own AI

520
00:25:57,160 --> 00:26:01,320
Speaker 9: storage and computing products by as much is thirty four percent,

521
00:26:01,440 --> 00:26:04,960
Speaker 9: and Investor cheered the news to say, sending the stocks

522
00:26:05,000 --> 00:26:07,679
Speaker 9: up as much as four percent in Hong Kong on Wednesday.

523
00:26:07,960 --> 00:26:10,520
Speaker 9: So investors have been looking for answers on how the

524
00:26:10,560 --> 00:26:13,280
Speaker 9: company is going to monetize the AI investment and justify

525
00:26:13,359 --> 00:26:15,480
Speaker 9: the massive investment they are spending on the AI.

526
00:26:15,560 --> 00:26:17,520
Speaker 2: So that's more details.

527
00:26:17,119 --> 00:26:20,360
Speaker 9: On this AI monetized instrument monetization plan. It's definitely going

528
00:26:20,359 --> 00:26:22,880
Speaker 9: to own the minds of investors on during the Alibaba's

529
00:26:23,000 --> 00:26:26,200
Speaker 9: earnest conference call, as well as plans on investment on

530
00:26:26,320 --> 00:26:29,560
Speaker 9: other areas such as quick commerce. The company has been

531
00:26:29,600 --> 00:26:32,080
Speaker 9: spending a lot to catch up with rivals and also

532
00:26:32,160 --> 00:26:34,919
Speaker 9: definitely a continued growth. The investor will be looking for

533
00:26:35,040 --> 00:26:37,480
Speaker 9: signs of continue growth in its top light and bottom line.

534
00:26:37,960 --> 00:26:39,920
Speaker 3: Yu Kiang, I'm so pleased you're going to be sticking

535
00:26:39,960 --> 00:26:42,600
Speaker 3: around for a few months. We appreciate you joining Kiang

536
00:26:42,680 --> 00:26:44,960
Speaker 3: Lee over from Asia here in New York talking all

537
00:26:45,000 --> 00:26:47,399
Speaker 3: about Alibaba and Tencent. Look, now let's pivot a bit

538
00:26:47,640 --> 00:26:51,280
Speaker 3: to the private markets. Cybersecurity startup Expo has raised one

539
00:26:51,320 --> 00:26:53,280
Speaker 3: hundred and twenty million dollars at evaluation more than a

540
00:26:53,320 --> 00:26:55,720
Speaker 3: billion now. The round was led by DFJA Growth and

541
00:26:55,800 --> 00:26:58,600
Speaker 3: North Zone and comes as more companies are focusing on

542
00:26:58,640 --> 00:27:02,760
Speaker 3: the threats of aiured cyber attacks. Please to speak with

543
00:27:02,840 --> 00:27:07,240
Speaker 3: Expo c more. I mean talk to us about first

544
00:27:07,280 --> 00:27:09,840
Speaker 3: and foremost the money, what you use it for, how

545
00:27:09,880 --> 00:27:11,879
Speaker 3: you can continue to power expot growth.

546
00:27:13,480 --> 00:27:17,400
Speaker 10: Thank you very much for having me. You cannot define

547
00:27:17,880 --> 00:27:22,760
Speaker 10: defend against machine speed attacks with human speed tools. And

548
00:27:22,840 --> 00:27:25,840
Speaker 10: that is what expert is all about. Last year, we

549
00:27:26,040 --> 00:27:30,800
Speaker 10: proved that completely autonomous attacks are possible by entering our

550
00:27:30,880 --> 00:27:34,240
Speaker 10: bot on the hacker one platform, and within a few

551
00:27:34,240 --> 00:27:38,800
Speaker 10: months it became the top hacker in the world. After that,

552
00:27:38,880 --> 00:27:44,760
Speaker 10: we were we here were quickly signed up over our

553
00:27:44,880 --> 00:27:50,720
Speaker 10: hundreds corporate customers, and we're now raising this money in

554
00:27:50,800 --> 00:27:53,879
Speaker 10: order to better serve those customers and to very quickly

555
00:27:54,600 --> 00:27:57,159
Speaker 10: further develop our products and go to market.

556
00:27:57,760 --> 00:28:00,600
Speaker 3: Okay, so what's so fascinating about your tool is that

557
00:28:01,480 --> 00:28:04,880
Speaker 3: basically a GENTICKI is a force in terms of our

558
00:28:04,880 --> 00:28:07,040
Speaker 3: defensive posture, but it's also a force in terms of

559
00:28:07,040 --> 00:28:10,560
Speaker 3: our aggressive posture. The fact that people can fight back

560
00:28:10,600 --> 00:28:13,439
Speaker 3: and you're using in many ways is the ability to

561
00:28:13,520 --> 00:28:18,199
Speaker 3: find vulnerabilities ahead of bad actors. How are we seeing

562
00:28:18,240 --> 00:28:21,040
Speaker 3: cyber attacks more broadly scale in this moment? How much

563
00:28:21,160 --> 00:28:23,679
Speaker 3: is there an aggression from those that are wanting to

564
00:28:23,680 --> 00:28:24,040
Speaker 3: do ill?

565
00:28:25,680 --> 00:28:30,560
Speaker 10: Absolutely so, attacker holes will and are already using AI.

566
00:28:31,520 --> 00:28:33,960
Speaker 10: But the good news is the defenders can do it too.

567
00:28:34,119 --> 00:28:38,200
Speaker 10: By thinking the one can attack our agentic AI system

568
00:28:38,720 --> 00:28:42,320
Speaker 10: can find the flaws before it a bad guys, So

569
00:28:42,520 --> 00:28:45,560
Speaker 10: the danger is not really AI itself. But the danger

570
00:28:46,040 --> 00:28:48,960
Speaker 10: is defending modern systems with yesterday stores.

571
00:28:49,800 --> 00:28:52,280
Speaker 3: Talk to us about what we're seeing in terms of

572
00:28:52,520 --> 00:28:54,760
Speaker 3: you beefing up the ability to scale.

573
00:28:54,960 --> 00:28:55,760
Speaker 2: Is it about people?

574
00:28:55,760 --> 00:28:57,680
Speaker 3: Because many in this moment I say, well, for the

575
00:28:57,760 --> 00:29:00,600
Speaker 3: rise of a gentki, you need less talent, you just

576
00:29:00,800 --> 00:29:02,360
Speaker 3: can empower the talent you already have.

577
00:29:03,920 --> 00:29:08,640
Speaker 10: It's well, it's absolutely We already have some of the

578
00:29:08,800 --> 00:29:11,240
Speaker 10: very best human hackers in the world working for us,

579
00:29:11,720 --> 00:29:15,440
Speaker 10: as well as a fantastic go to market team. Really,

580
00:29:15,800 --> 00:29:21,520
Speaker 10: we've got other combination of both AI talent and security engineers. However,

581
00:29:22,200 --> 00:29:25,840
Speaker 10: we also need to bring the product to market and

582
00:29:27,480 --> 00:29:31,200
Speaker 10: go to market. Appalt is still very much our human

583
00:29:31,800 --> 00:29:34,680
Speaker 10: human lad activity. A lot of the money you will

584
00:29:34,680 --> 00:29:38,640
Speaker 10: also go cannot lead towards inference in order to speed

585
00:29:38,720 --> 00:29:39,560
Speaker 10: up our development.

586
00:29:40,240 --> 00:29:42,480
Speaker 3: Where are you looking for for that sort of compute?

587
00:29:42,480 --> 00:29:45,880
Speaker 3: How are you managing to ensure you've got the right

588
00:29:45,920 --> 00:29:47,280
Speaker 3: inference power and you need it?

589
00:29:49,120 --> 00:29:52,640
Speaker 10: So we actually work with all the frontier labs. All

590
00:29:52,680 --> 00:29:59,040
Speaker 10: of them give us special access to early models and

591
00:30:00,080 --> 00:30:03,360
Speaker 10: that allows us to always be in front of the

592
00:30:03,480 --> 00:30:07,760
Speaker 10: very latest, our very latest developments. We also across a

593
00:30:08,280 --> 00:30:12,400
Speaker 10: very pretty large consumers have special deals with the large

594
00:30:12,440 --> 00:30:13,120
Speaker 10: harvest galus.

595
00:30:14,600 --> 00:30:18,400
Speaker 3: You are so fascinating expos clearly fascinating, but your background

596
00:30:18,480 --> 00:30:22,360
Speaker 3: as a computer scientist professor at Oxford decades, the fact

597
00:30:22,360 --> 00:30:25,240
Speaker 3: that you help build GitHub, gethub co pilot as well.

598
00:30:25,480 --> 00:30:28,760
Speaker 3: When we see this fervor around a gender KI, when

599
00:30:28,760 --> 00:30:31,800
Speaker 3: you see the hype that's happening worldwide around an openclore

600
00:30:31,840 --> 00:30:36,280
Speaker 3: and an open source model that can revolutionize personal AI,

601
00:30:37,160 --> 00:30:38,120
Speaker 3: how does that make you feel?

602
00:30:38,160 --> 00:30:39,920
Speaker 2: How real do you feel this moment?

603
00:30:40,040 --> 00:30:45,240
Speaker 10: Is it's an unbelievable time to be building. We're seeing

604
00:30:45,400 --> 00:30:48,959
Speaker 10: we're in the middle of a new revolution again to

605
00:30:49,040 --> 00:30:54,400
Speaker 10: the industrial revolution of our previous century, but it's going

606
00:30:54,520 --> 00:30:58,640
Speaker 10: to be much much bigger than that. So personally, I

607
00:30:58,720 --> 00:31:05,040
Speaker 10: actually feel lot, deeply privileged to be parts of this transformation.

608
00:31:06,120 --> 00:31:10,400
Speaker 3: So briefly, you're optimistic at this moment rather than any

609
00:31:10,520 --> 00:31:12,320
Speaker 3: concerns wire is security issues.

610
00:31:14,080 --> 00:31:17,920
Speaker 10: Absolutely, So the key about gender Gatorie systems is that

611
00:31:17,960 --> 00:31:23,640
Speaker 10: they will actually amplify what we can do as as humans,

612
00:31:23,640 --> 00:31:29,000
Speaker 10: and that's certainly too in cybersecurity. We've got one of

613
00:31:29,040 --> 00:31:32,680
Speaker 10: our customers, sess now sometimes called the Google of the

614
00:31:32,680 --> 00:31:36,160
Speaker 10: Czech Republic. They've been using our system for over a

615
00:31:36,240 --> 00:31:39,680
Speaker 10: year and one quote from one of their engineers stuck

616
00:31:39,760 --> 00:31:43,000
Speaker 10: with me. Every EXPO agent is like a new team

617
00:31:43,080 --> 00:31:48,520
Speaker 10: member in security. We're vastly constrained by the scarcity of

618
00:31:48,560 --> 00:31:53,120
Speaker 10: talent and so having the ability to suddenly scale and

619
00:31:53,200 --> 00:31:55,920
Speaker 10: do all the things that we know we should be

620
00:31:55,960 --> 00:31:59,920
Speaker 10: doing but we're not able to do before. That's one

621
00:32:00,440 --> 00:32:02,160
Speaker 10: and I believe not the same is true in many

622
00:32:02,760 --> 00:32:05,360
Speaker 10: in money, older fields or for human activity.

623
00:32:05,840 --> 00:32:08,800
Speaker 2: Gudomar, great to have some time with you. Expo CEO

624
00:32:08,960 --> 00:32:10,160
Speaker 2: and the fundraise.

625
00:32:15,880 --> 00:32:18,640
Speaker 3: Gradient Ventures, Well, it's raised two hundred and twenty million

626
00:32:18,680 --> 00:32:22,080
Speaker 3: dollars for its fifth fund, doubling down on its strategy

627
00:32:22,080 --> 00:32:24,840
Speaker 3: and backing the next wave of AI founders at seed stage,

628
00:32:24,840 --> 00:32:27,080
Speaker 3: early stage. Now with his latest raise, the firm now

629
00:32:27,120 --> 00:32:30,320
Speaker 3: manages almost one point two billion dollars across its funds.

630
00:32:30,560 --> 00:32:32,640
Speaker 3: Please to say that we're joined by Darren Is Shirazi,

631
00:32:32,680 --> 00:32:36,600
Speaker 3: He's general partner. And so do we move away from

632
00:32:36,640 --> 00:32:40,160
Speaker 3: any of the learned performance already or do you double

633
00:32:40,200 --> 00:32:41,920
Speaker 3: down on the conviction that you already have. Is it's

634
00:32:41,920 --> 00:32:43,600
Speaker 3: still about generator AI and the tooling.

635
00:32:45,040 --> 00:32:47,280
Speaker 11: Thanks for having me, Yeah, I mean, we have been

636
00:32:47,320 --> 00:32:52,120
Speaker 11: investing in AI since since the very beg beginning, and

637
00:32:52,120 --> 00:32:55,560
Speaker 11: then our focus has really been partnering with founders at

638
00:32:55,560 --> 00:32:58,000
Speaker 11: the earliest stages, when founders are really starting out with

639
00:32:58,040 --> 00:33:01,520
Speaker 11: a brand new idea, and we backed hundreds of companies,

640
00:33:01,640 --> 00:33:03,880
Speaker 11: and we've been fortunate enough to partner with these companies

641
00:33:03,880 --> 00:33:05,760
Speaker 11: from the very beginning, some of which are in an

642
00:33:05,800 --> 00:33:08,640
Speaker 11: apartment or our founders that have never even been in

643
00:33:08,680 --> 00:33:11,880
Speaker 11: business before, and our focus is on helping them scale

644
00:33:12,000 --> 00:33:14,720
Speaker 11: up and really find the next round of funding and

645
00:33:14,800 --> 00:33:17,000
Speaker 11: to really partner with these founders all the way through

646
00:33:17,080 --> 00:33:18,480
Speaker 11: IPO in some cases.

647
00:33:18,800 --> 00:33:20,880
Speaker 3: I mean, you've been doing this since twenty seventeen, since

648
00:33:20,880 --> 00:33:24,040
Speaker 3: before chat ubt, since before AI got cooled. There we

649
00:33:24,080 --> 00:33:26,800
Speaker 3: say it, you've backed what five hundred AI founders already

650
00:33:26,920 --> 00:33:28,959
Speaker 3: talk us through the wins that you've already seen, because look,

651
00:33:29,000 --> 00:33:31,800
Speaker 3: the LPs need convincing at this moment. Where were you

652
00:33:31,840 --> 00:33:34,000
Speaker 3: able to show your prowess to those to come back

653
00:33:34,000 --> 00:33:35,840
Speaker 3: and reinvest with you.

654
00:33:37,280 --> 00:33:39,280
Speaker 11: Yeah, I mean, you know, I think over the course

655
00:33:39,320 --> 00:33:41,960
Speaker 11: of the last ten years that we've been investing in AI,

656
00:33:42,120 --> 00:33:44,520
Speaker 11: we've seen the number of companies that come through our

657
00:33:44,560 --> 00:33:47,440
Speaker 11: doors really accelerate and increase. We used to see about

658
00:33:47,480 --> 00:33:49,880
Speaker 11: one hundred companies in AI per year, and we were

659
00:33:49,920 --> 00:33:52,720
Speaker 11: sort of the odd ball venture fund that was really

660
00:33:52,760 --> 00:33:55,880
Speaker 11: really niche and looking at really technical people that were

661
00:33:55,960 --> 00:33:58,880
Speaker 11: researchers or people that were not necessarily focused on building

662
00:33:58,960 --> 00:34:01,320
Speaker 11: big businesses in the eyes of a lot of other

663
00:34:01,400 --> 00:34:05,200
Speaker 11: venture capitalists. But we saw that the chat GPT moment

664
00:34:05,240 --> 00:34:07,600
Speaker 11: was going to come. We saw that the Transformer paper,

665
00:34:07,600 --> 00:34:10,959
Speaker 11: which came out a month before Gradient launched, was really

666
00:34:10,960 --> 00:34:14,239
Speaker 11: going to be the epoch moment for AI. And my

667
00:34:14,320 --> 00:34:16,759
Speaker 11: partner Zach and I we saw that the ability for

668
00:34:16,840 --> 00:34:20,040
Speaker 11: people to use these models as sort of an intelligent

669
00:34:20,080 --> 00:34:22,600
Speaker 11: buddy and or an intelligent copilot was really going to

670
00:34:22,600 --> 00:34:25,319
Speaker 11: be the future of the Internet and the future of technology,

671
00:34:25,560 --> 00:34:28,200
Speaker 11: and we partnered with these founders. Now we see two

672
00:34:28,320 --> 00:34:31,879
Speaker 11: thousand companies a year come through our doors and pitch

673
00:34:32,000 --> 00:34:35,600
Speaker 11: us with some new AI technology or AI capability, and

674
00:34:35,680 --> 00:34:37,640
Speaker 11: we have to pick about ten to fifteen of those

675
00:34:37,680 --> 00:34:39,480
Speaker 11: that we decided to partner with. So the job has

676
00:34:39,520 --> 00:34:42,200
Speaker 11: gotten more difficult in terms of volume, but it's also

677
00:34:42,239 --> 00:34:44,200
Speaker 11: gotten a lot more interesting because of the number of

678
00:34:44,200 --> 00:34:47,080
Speaker 11: technologies and number of founders that we see and what

679
00:34:47,120 --> 00:34:50,320
Speaker 11: they are working on. Everything from wafer scale compute companies

680
00:34:50,640 --> 00:34:54,759
Speaker 11: to open claw renditions or individual models that are for

681
00:34:54,840 --> 00:34:55,720
Speaker 11: specific tasks.

682
00:34:56,000 --> 00:34:59,000
Speaker 3: What's also got more difficult is just the size of

683
00:34:59,040 --> 00:35:00,239
Speaker 3: the rounds that.

684
00:35:00,160 --> 00:35:00,640
Speaker 2: We've just had.

685
00:35:00,640 --> 00:35:02,520
Speaker 3: The biggest sort of seed was it a billion that

686
00:35:02,600 --> 00:35:05,279
Speaker 3: Yan Laccoon's just been raising over in Europe, I mean

687
00:35:05,880 --> 00:35:08,440
Speaker 3: coming out with three billion. In terms of valuation, you're

688
00:35:08,480 --> 00:35:10,799
Speaker 3: seeing Mira, Marati, rais and extraordinary fund people are calling

689
00:35:10,840 --> 00:35:12,759
Speaker 3: these like mango seeds, ravocado seeds.

690
00:35:12,760 --> 00:35:15,120
Speaker 2: As I'd love to say, how can you compete?

691
00:35:16,360 --> 00:35:18,920
Speaker 11: So that's a really interesting question, is that we actually

692
00:35:18,960 --> 00:35:21,760
Speaker 11: think that there is a bubble in certain parts of AI.

693
00:35:22,000 --> 00:35:25,320
Speaker 11: There are bubbles. There is a bubble in foundational model companies,

694
00:35:25,360 --> 00:35:29,160
Speaker 11: contenders to open AI, contenders to Google, contenders to xai,

695
00:35:29,160 --> 00:35:31,880
Speaker 11: and anthropic and that's those are companies that we don't fund.

696
00:35:32,160 --> 00:35:34,120
Speaker 11: What we really want to be focused on are AI

697
00:35:34,160 --> 00:35:38,160
Speaker 11: infrastructure companies and AI application companies, and those seed rounds

698
00:35:38,239 --> 00:35:40,480
Speaker 11: tend to be really well priced and tend to be

699
00:35:40,520 --> 00:35:42,400
Speaker 11: ones that we can invest in and lead with an

700
00:35:42,440 --> 00:35:45,440
Speaker 11: average three million dollar check and own ten to fifteen

701
00:35:45,440 --> 00:35:48,800
Speaker 11: percent of those companies. We actually don't see the valuation

702
00:35:48,920 --> 00:35:51,120
Speaker 11: issues in the areas that we want to focus in

703
00:35:51,160 --> 00:35:53,360
Speaker 11: when it comes to AI. When it comes to a

704
00:35:53,400 --> 00:35:55,400
Speaker 11: lot of these other companies that are raising a billion

705
00:35:55,440 --> 00:35:58,520
Speaker 11: dollars here or there, it seems as though those are

706
00:35:58,560 --> 00:36:02,160
Speaker 11: a lot of venture capitalists or investors that want to

707
00:36:02,239 --> 00:36:05,960
Speaker 11: chase the next open AI. But realistically, the moat at

708
00:36:05,960 --> 00:36:09,080
Speaker 11: the model layer is just capital. How much money can

709
00:36:09,120 --> 00:36:11,759
Speaker 11: you raise? You know, because you buy data and compute

710
00:36:11,960 --> 00:36:14,400
Speaker 11: and so where we focus, the valuations are favorable and

711
00:36:14,440 --> 00:36:16,840
Speaker 11: the round sizes are favorable, and we believe that that

712
00:36:16,920 --> 00:36:17,839
Speaker 11: will continue.

713
00:36:18,280 --> 00:36:21,359
Speaker 3: What is it like in terms of diversifying your LP

714
00:36:21,520 --> 00:36:24,319
Speaker 3: base because it has a very interesting story gradient It

715
00:36:24,320 --> 00:36:26,800
Speaker 3: came out of Google, but then you brought on external money.

716
00:36:26,800 --> 00:36:28,600
Speaker 3: Does that change the way in which you have to

717
00:36:28,640 --> 00:36:31,680
Speaker 3: invest because lots of people have different strategies the why

718
00:36:31,719 --> 00:36:33,000
Speaker 3: they're coming to you with their money.

719
00:36:34,480 --> 00:36:37,520
Speaker 11: It was extremely challenging to raise from LPs, especially in

720
00:36:37,520 --> 00:36:39,560
Speaker 11: this climate. I mean, we're very fortunate that we were

721
00:36:39,560 --> 00:36:42,000
Speaker 11: able to get it done in about nine months, but

722
00:36:42,160 --> 00:36:44,880
Speaker 11: you know before for our prior for funds, Google was

723
00:36:44,920 --> 00:36:47,759
Speaker 11: the single LP and they've been an incredible partner. I

724
00:36:47,760 --> 00:36:50,480
Speaker 11: don't think we could have launched an AI seed fund

725
00:36:50,520 --> 00:36:54,360
Speaker 11: in twenty seventeen when everyone was looking at crypto without

726
00:36:54,400 --> 00:36:57,200
Speaker 11: the help of Google, and so now I think we

727
00:36:57,280 --> 00:37:00,680
Speaker 11: decided we wanted to diversify our LP base because it

728
00:37:00,719 --> 00:37:03,560
Speaker 11: gives us a lot more capabilities. We have partners in

729
00:37:03,600 --> 00:37:06,200
Speaker 11: the LP base for our companies, and we also wanted

730
00:37:06,200 --> 00:37:08,600
Speaker 11: the ability to sort of scale up our capital base

731
00:37:08,640 --> 00:37:11,960
Speaker 11: and have that flexibility. But it was challenging because a

732
00:37:12,000 --> 00:37:15,239
Speaker 11: lot of people haven't seen liquidity, especially in the institutional

733
00:37:15,360 --> 00:37:18,440
Speaker 11: LP network. Fortunately, we found LPs that believed in our

734
00:37:18,520 --> 00:37:20,680
Speaker 11: vision and mission and wanted to partner with us over

735
00:37:20,719 --> 00:37:23,200
Speaker 11: the long term. And now we have a collection of

736
00:37:23,239 --> 00:37:27,200
Speaker 11: not just Google, but many other amazing institutions, including companies

737
00:37:27,239 --> 00:37:30,040
Speaker 11: like Marcado Libra, which we're very closely partnered with, as

738
00:37:30,040 --> 00:37:33,919
Speaker 11: well as a number of other insurance companies, institutions and foundations.

739
00:37:33,960 --> 00:37:36,960
Speaker 11: And so I think that given the climate, it is

740
00:37:37,080 --> 00:37:39,680
Speaker 11: challenging to raise, especially for a seed fund when you

741
00:37:39,719 --> 00:37:43,840
Speaker 11: have inuresin in general catalyst raising ten twenty billion dollar funds.

742
00:37:44,120 --> 00:37:46,759
Speaker 11: But I think we've been able to articulate our strategy

743
00:37:47,200 --> 00:37:49,880
Speaker 11: in focusing on the areas where there isn't a bubble,

744
00:37:49,920 --> 00:37:52,759
Speaker 11: when valuations are favorable, and where we can partner with

745
00:37:52,800 --> 00:37:55,480
Speaker 11: these founders when it's just an idea and mature and

746
00:37:55,480 --> 00:37:56,200
Speaker 11: grow with them.

747
00:37:56,719 --> 00:37:58,440
Speaker 2: Love that clarity and your Canada.

748
00:37:58,480 --> 00:38:02,440
Speaker 3: Thanks so much, Darren Shrausi of Gradient, Congratulations on the

749
00:38:02,520 --> 00:38:05,399
Speaker 3: new fund now coming up. Disney's new CEO takes over

750
00:38:05,440 --> 00:38:08,239
Speaker 3: as the media landscape shifts, government scrutiny increases.

751
00:38:08,760 --> 00:38:10,600
Speaker 2: We're on that next as Bloomberg Tech.

752
00:38:18,600 --> 00:38:21,440
Speaker 3: Disney's annual shareholder meeting is today and it marks.

753
00:38:21,200 --> 00:38:22,280
Speaker 2: A leadership handoff.

754
00:38:22,320 --> 00:38:25,400
Speaker 3: Josh Tomorrow set to take over as CEO from Bob Byger,

755
00:38:25,440 --> 00:38:28,840
Speaker 3: and he steps in at a challenging moment inheriting what

756
00:38:29,160 --> 00:38:31,040
Speaker 3: is a bit of an underperforming stock and a media

757
00:38:31,120 --> 00:38:34,080
Speaker 3: landscape still in flux for all Bloomers. Chris Palm Mary,

758
00:38:34,080 --> 00:38:36,480
Speaker 3: who leads our Media and Entertainment team, joins us look

759
00:38:36,640 --> 00:38:38,120
Speaker 3: for the second stint to Bob Iger.

760
00:38:38,200 --> 00:38:40,200
Speaker 2: He came on in what November.

761
00:38:39,760 --> 00:38:41,920
Speaker 3: Twenty twenty two, and the stock has only gone up

762
00:38:41,960 --> 00:38:44,400
Speaker 3: nine percent compared to seventy percent for the SMP and

763
00:38:45,160 --> 00:38:48,000
Speaker 3: huge moves for Netflix. What does Josh need to prove

764
00:38:48,040 --> 00:38:49,200
Speaker 3: to an investor base today?

765
00:38:50,239 --> 00:38:52,480
Speaker 12: Well, Tomorrow is coming from the theme park business. That's

766
00:38:52,480 --> 00:38:55,600
Speaker 12: where his whole career has been, so we don't know

767
00:38:55,719 --> 00:38:58,840
Speaker 12: to what extent he really understands the TV a business

768
00:38:58,840 --> 00:39:02,240
Speaker 12: and a film business that is still so critical to Disney,

769
00:39:02,640 --> 00:39:05,280
Speaker 12: and there's just been a movement out of these stocks.

770
00:39:05,880 --> 00:39:08,359
Speaker 12: You know, the streaming businesses haven't been as profitable as

771
00:39:08,400 --> 00:39:12,160
Speaker 12: people hope. The traditional TV channels are just losing viewers

772
00:39:12,200 --> 00:39:15,799
Speaker 12: and advertisers. So Tomorrow has to articulate a strategy for

773
00:39:15,880 --> 00:39:18,200
Speaker 12: that business that we really haven't heard from them.

774
00:39:18,640 --> 00:39:21,040
Speaker 3: Yeah, I mean he's got, of course, Dana Walden still

775
00:39:21,040 --> 00:39:23,440
Speaker 3: on board when it comes to Chief Creative Officer and

776
00:39:23,520 --> 00:39:27,080
Speaker 3: all things streaming movies that sort of ip, but it

777
00:39:27,120 --> 00:39:29,880
Speaker 3: has done deals He's got into Epic for example. How

778
00:39:29,880 --> 00:39:31,680
Speaker 3: are we likely to see him bring all of these

779
00:39:31,760 --> 00:39:33,560
Speaker 3: clustered sort of assets together.

780
00:39:34,640 --> 00:39:36,440
Speaker 12: Well, what we get a sense of his strategy is

781
00:39:36,440 --> 00:39:38,640
Speaker 12: that he sees, you know, coming from the parks business,

782
00:39:38,640 --> 00:39:41,560
Speaker 12: he's got that direct connection to the consumer, and so

783
00:39:41,600 --> 00:39:45,120
Speaker 12: he sees the Disney Plus service as a direct consumer

784
00:39:45,200 --> 00:39:47,840
Speaker 12: service and a way to tie in, say the games

785
00:39:47,880 --> 00:39:50,200
Speaker 12: like Fortnite, the Epic investment, and it's going to be

786
00:39:50,239 --> 00:39:53,120
Speaker 12: a sort of a Disney universe, and he's going to

787
00:39:53,120 --> 00:39:56,000
Speaker 12: put this all, you know, sort of better, more connections

788
00:39:56,040 --> 00:39:59,000
Speaker 12: directly with Disney fans who are you as we all

789
00:39:59,040 --> 00:40:02,480
Speaker 12: know who have been and money spending consumers.

790
00:40:02,680 --> 00:40:05,279
Speaker 3: We'll see what he does with tech aivrar and the

791
00:40:05,360 --> 00:40:09,359
Speaker 3: light bluembogs. Chris Palmry watching that shareholder meeting. Thanks so much.

792
00:40:10,120 --> 00:40:12,759
Speaker 3: Now let's talk about the FCC chair running car. He

793
00:40:12,840 --> 00:40:15,760
Speaker 3: is waging what he calls a crackdown on fake news

794
00:40:16,000 --> 00:40:18,440
Speaker 3: as the Trump administration leans more heavily on regulators to

795
00:40:18,520 --> 00:40:22,080
Speaker 3: challenge media coverage, raising new questions about the SEC's role

796
00:40:22,160 --> 00:40:25,239
Speaker 3: in reach the most. Kelsey Griffiths takes a closer look

797
00:40:25,280 --> 00:40:27,560
Speaker 3: at Carr himself his rise within the administration.

798
00:40:27,600 --> 00:40:28,600
Speaker 2: It's today's big take.

799
00:40:29,000 --> 00:40:31,759
Speaker 3: It's a fascinating read, and it all starts with how

800
00:40:31,840 --> 00:40:35,879
Speaker 3: basically a lot of Georgetown alumni were amazed to hear

801
00:40:35,960 --> 00:40:38,239
Speaker 3: that apparently they've gone to university with Brendan Carr, and

802
00:40:38,239 --> 00:40:41,160
Speaker 3: they didn't realize he was not a big guy on

803
00:40:41,200 --> 00:40:44,560
Speaker 3: campus or a big personality before the Trump administration.

804
00:40:45,600 --> 00:40:48,560
Speaker 13: That's exactly right, Caroline. I spoke with some of Brendan

805
00:40:48,600 --> 00:40:52,280
Speaker 13: Carr's former classmates who were shocked to realize in hindsight

806
00:40:52,360 --> 00:40:54,640
Speaker 13: that they had even gone to university with him, and

807
00:40:54,680 --> 00:40:57,680
Speaker 13: I think that is such a contrast to the man

808
00:40:57,719 --> 00:41:01,040
Speaker 13: we see today who has become this flamethrower for the

809
00:41:01,080 --> 00:41:05,080
Speaker 13: Trump administration. That's really in contrast to his kind of shy,

810
00:41:05,280 --> 00:41:09,799
Speaker 13: quiet personality that he's had over the years. So we've

811
00:41:09,840 --> 00:41:12,759
Speaker 13: really seen a change in his demeanor in the way

812
00:41:12,800 --> 00:41:15,319
Speaker 13: that he communicates publicly as he's really stepped into this

813
00:41:15,480 --> 00:41:17,160
Speaker 13: role as Trump's media enforcer.

814
00:41:17,440 --> 00:41:20,400
Speaker 3: Take us on that evolution then, of him, the personality,

815
00:41:20,440 --> 00:41:22,400
Speaker 3: the man and the roles that he sort of almost

816
00:41:22,440 --> 00:41:26,080
Speaker 3: said gump like got him into this place with the FCC.

817
00:41:27,480 --> 00:41:30,200
Speaker 13: So I've covered Brendan Carr since twenty seventeen when he

818
00:41:30,280 --> 00:41:33,360
Speaker 13: was a commissioner, and I think it's been really interesting

819
00:41:34,280 --> 00:41:38,720
Speaker 13: to watch. He has always had a really congenial relationship

820
00:41:38,719 --> 00:41:41,319
Speaker 13: with the press. Even now, he always stops by the

821
00:41:41,320 --> 00:41:46,560
Speaker 13: press table at the FCC's public meetings speaks with US banters,

822
00:41:46,840 --> 00:41:49,360
Speaker 13: and I think that is sort of in contrast to

823
00:41:49,920 --> 00:41:52,640
Speaker 13: the big swings that he's been taking in the last

824
00:41:52,719 --> 00:41:56,080
Speaker 13: year or so against what he and Trump like to

825
00:41:56,160 --> 00:41:57,240
Speaker 13: labels the fake news.

826
00:41:58,080 --> 00:41:59,959
Speaker 3: He must have had to grow a quiet fake skin

827
00:42:00,719 --> 00:42:03,520
Speaker 3: just thinking of the fallout online, the pushback he's got

828
00:42:03,520 --> 00:42:06,120
Speaker 3: from very famous comedians and the like, just how does

829
00:42:06,160 --> 00:42:09,000
Speaker 3: he serve the administration agenda.

830
00:42:08,680 --> 00:42:14,920
Speaker 13: At this moment, Brendan Carr has very much taken the

831
00:42:14,920 --> 00:42:18,440
Speaker 13: position that whatever happens in the media, whatever fallout happens

832
00:42:18,480 --> 00:42:21,279
Speaker 13: in the media, is not really his problem. I asked

833
00:42:21,360 --> 00:42:24,880
Speaker 13: him what it was like to publicly contribute to Jimmy

834
00:42:24,920 --> 00:42:28,000
Speaker 13: Kimmel's temporary cancelation and then to face a lot of

835
00:42:28,000 --> 00:42:31,160
Speaker 13: blowback for that, and he says he doesn't really care.

836
00:42:31,400 --> 00:42:34,120
Speaker 13: He tries not to pay attention to the negative headlines,

837
00:42:34,239 --> 00:42:37,160
Speaker 13: and when he does see them, he kind of chuckles.

838
00:42:37,200 --> 00:42:39,719
Speaker 13: So I think he kind of adopts that some moilar

839
00:42:39,840 --> 00:42:43,000
Speaker 13: attitude that the president does that all news is kind

840
00:42:43,000 --> 00:42:43,520
Speaker 13: of good news.

841
00:42:44,520 --> 00:42:47,400
Speaker 3: See if he's reading your piece to Bloomg's Kelsey Griffiths,

842
00:42:47,400 --> 00:42:49,480
Speaker 3: it's a great deep dive and a great big take.

843
00:42:50,120 --> 00:42:52,319
Speaker 3: Everyone to go online and take a look and on

844
00:42:52,320 --> 00:42:52,800
Speaker 3: the terminal.

845
00:42:52,800 --> 00:42:54,600
Speaker 2: But that does it. With this addition of Bloomberg Tech, you.

846
00:42:54,600 --> 00:42:56,280
Speaker 3: Do not want to forget to check out our podcast

847
00:42:56,440 --> 00:42:58,640
Speaker 3: find Out on the Terminal as well as online on Apple.

848
00:42:58,440 --> 00:43:02,520
Speaker 2: Spotify and high r from New York. This is Breenberg

849
00:43:02,600 --> 00:43:02,759
Speaker 2: Tack