WEBVTT - Ruth Porat 0:00:03.520 --> 0:00:05.720 In recent years, one of the most powerful people in 0:00:05.760 --> 0:00:09.040 the financial and technology worlds has been Ruth Parratt. She 0:00:09.160 --> 0:00:12.080 served as chief financial officer for Morgan Stanley and then 0:00:12.119 --> 0:00:15.360 the chief financial officer for Google and Alphabet. She now 0:00:15.440 --> 0:00:19.119 serves as president and Chief Investment Officer for Alphabet. I 0:00:19.160 --> 0:00:21.760 sat down with her recently in Davos to talk about 0:00:21.760 --> 0:00:23.880 what she's going to do in her new position and 0:00:23.920 --> 0:00:26.000 how she's going to invest more than one hundred billion 0:00:26.040 --> 0:00:33.040 dollars that Alphabet now has. So we're very pleased to 0:00:33.080 --> 0:00:36.400 have Ruth Parratt here. Ruth, as you may know, has 0:00:36.440 --> 0:00:40.000 recently been promoted. She for almost the last decade has 0:00:40.040 --> 0:00:44.120 been the CFO of Google and Alphabet, and now she 0:00:44.159 --> 0:00:47.040 still has that title, but she's now also the president 0:00:47.040 --> 0:00:49.600 and chief Investment officer for Alphabet. 0:00:49.680 --> 0:00:50.160 Is that right? 0:00:50.280 --> 0:00:51.640 I am, And it's great to be here with you. 0:00:51.840 --> 0:00:55.680 So you have three jobs, CFO, President, you get three 0:00:55.720 --> 0:00:56.440 salaries for that. 0:00:57.840 --> 0:01:01.720 I think I'm doing okay, okay, So. 0:01:03.080 --> 0:01:05.600 Everybody wants to talk to you here because you've got 0:01:05.600 --> 0:01:07.119 a lot of money. You've got over one hundred million 0:01:07.120 --> 0:01:09.760 dollars of cash to invest, so people want to see you. 0:01:10.840 --> 0:01:12.840 Why do you come to Davos because people are just 0:01:12.880 --> 0:01:15.280 going to be bombarding you give me money for this 0:01:15.440 --> 0:01:17.639 or that. Is it really worth the effort to slept 0:01:17.680 --> 0:01:19.440 all the way here or are you happy to come 0:01:19.440 --> 0:01:22.240 here and you actually meet people you actually want to see? 0:01:22.440 --> 0:01:24.760 Well, I've actually been coming here since I ran tech 0:01:24.800 --> 0:01:27.880 banking at Morgan Stanley back in the nineties and was 0:01:27.959 --> 0:01:30.000 hunting for fees, and so I think it's sort. 0:01:29.800 --> 0:01:32.759 Of become one stop shopping. You make the trip and. 0:01:32.680 --> 0:01:35.200 Then you get to see people from Asia and Africa, 0:01:35.360 --> 0:01:38.600 Middle East, Europe, so it's just that one stop shop. 0:01:38.880 --> 0:01:41.400 Well, let's talk about your background now that you mentioned it. 0:01:41.840 --> 0:01:42.800 Where did you grow up? 0:01:44.160 --> 0:01:46.600 I grew up. I was born in England, mostly grew. 0:01:46.520 --> 0:01:48.880 Up in California, California. Your father was a professor at 0:01:48.880 --> 0:01:50.200 Stanford or something like that. 0:01:50.280 --> 0:01:52.560 My father actually was a Holocaust refugee. 0:01:52.680 --> 0:01:56.800 So my father escaped from Vienna right after Krystal Knock 0:01:57.280 --> 0:02:00.840 and made it to Palestine high school education. 0:02:00.880 --> 0:02:01.840 He ended up in enrolling in the. 0:02:01.840 --> 0:02:05.520 British Army, fought in the Balla Bella Laman and in 0:02:05.560 --> 0:02:08.720 the army taught himself physics because he figured if he 0:02:08.919 --> 0:02:13.480 survived he needed something that somebody valued after the war 0:02:13.840 --> 0:02:16.440 that actually that work, that plan worked. He ended up 0:02:16.480 --> 0:02:19.480 getting to England, where I was born, and then eventually 0:02:19.639 --> 0:02:22.240 got to the United States, who was sponsored by Senator Kennedy. 0:02:22.280 --> 0:02:24.240 So he spent his whole career at Harvard and then 0:02:24.280 --> 0:02:25.600 at Stamford. So I mostly grew up in. 0:02:25.600 --> 0:02:29.400 California, California, Okay, So you're in Stanford for a nice area, 0:02:29.480 --> 0:02:32.400 Silicon Valley. Why would you want to go to a 0:02:32.520 --> 0:02:34.920 business school at Wharton? Why did you go across the 0:02:34.960 --> 0:02:36.920 country to go to business school? And why did you 0:02:36.960 --> 0:02:38.560 want to go to business school to begin with? Why 0:02:38.560 --> 0:02:39.919 not be a physicist like your father? 0:02:40.240 --> 0:02:40.480 Well? 0:02:40.560 --> 0:02:43.200 I loved Wharton, so I'm not going to give you that. 0:02:44.600 --> 0:02:46.280 You know, I thought I was going to end up 0:02:46.320 --> 0:02:48.560 being First of all, I I got married. My husband 0:02:48.639 --> 0:02:50.440 was a lawyer on Wall Street, so I was commuting. 0:02:51.000 --> 0:02:53.400 But I thought that I would go into investment. I 0:02:53.400 --> 0:02:55.280 thought I'd go into consulting, and then I took this 0:02:55.320 --> 0:03:00.720 amazing merger's accounting class, kind of geeky, and decided I 0:03:00.760 --> 0:03:02.239 was going to go into mergers and acquisitions. 0:03:02.240 --> 0:03:03.440 So ended up on the East Coast. 0:03:03.600 --> 0:03:03.880 Okay. 0:03:03.960 --> 0:03:06.919 So she ultimately became the CFO of Morgan Stanley. Okay, 0:03:07.200 --> 0:03:09.840 and many people thought you might go in the government someday, 0:03:09.840 --> 0:03:12.120 and you actually could have been the CEO of Morgan Stanley. 0:03:12.160 --> 0:03:14.880 Why would you leave the important world of finance for 0:03:15.000 --> 0:03:16.800 something less significant like technology? 0:03:16.800 --> 0:03:18.200 Why would you do that? 0:03:20.520 --> 0:03:22.760 You know, kind of right time, right place, Like when 0:03:22.800 --> 0:03:25.240 I was the CFO of Morgan Stanley. I started in 0:03:25.280 --> 0:03:28.000 that position January first, twenty ten, when James Gorman took 0:03:28.000 --> 0:03:31.360 over as CEO, and I think he's an all star CEO, 0:03:31.480 --> 0:03:35.760 absolutely amazing, great partner. And when we started, it was 0:03:36.240 --> 0:03:38.880 twenty ten, so after the financial crisis, but Morgan Stanley 0:03:38.960 --> 0:03:41.600 was still very challenged. You know, Moody's was going to 0:03:41.720 --> 0:03:44.840 downgrade the bank at one point. It was it was 0:03:44.920 --> 0:03:45.600 kind of shaky. 0:03:45.720 --> 0:03:47.480 And I think that he and. 0:03:47.640 --> 0:03:51.440 We, together the team, led this extraordinary kind of recovery 0:03:51.520 --> 0:03:53.160 and it got to the point in twenty fifteen where 0:03:53.160 --> 0:03:54.360 I was ready for the next chapter, and then I 0:03:54.360 --> 0:03:55.280 got this call. 0:03:55.560 --> 0:03:59.160 Right of Google. It seemed okay, so all right, wade that. 0:03:59.120 --> 0:04:01.240 Move before we get the good Well, you were at 0:04:01.280 --> 0:04:04.240 Morgan's Stanley when the great meltdown, the Great Financial Crisis 0:04:04.240 --> 0:04:06.840 of seven o eight occurred, and it is said that 0:04:07.680 --> 0:04:10.200 people thought that Morgan Stanley and Goldman Sachs and everybody 0:04:10.200 --> 0:04:12.640 else was going to go under. Were you living through 0:04:12.680 --> 0:04:14.560 that and did you actually think Morgan Stanley was going 0:04:14.600 --> 0:04:15.680 to make it at that time? 0:04:16.320 --> 0:04:19.200 There were days I did not. It was bad. 0:04:20.120 --> 0:04:22.560 So I was running financial institutions banking at the time, 0:04:22.600 --> 0:04:24.680 and probably the most meaningful part of my career was 0:04:24.720 --> 0:04:27.880 when Hank Paulson called and said, I need advice. I 0:04:27.920 --> 0:04:31.560 need some bankers here, and so I went and led 0:04:31.600 --> 0:04:34.919 a team that worked on Fanny Freddy and then AIG 0:04:35.120 --> 0:04:38.680 and those were very, very challenging days. 0:04:39.160 --> 0:04:42.560 And coming out of it at the we. 0:04:42.480 --> 0:04:45.280 Did Fanny Freddy and then we did AIG, put them 0:04:45.279 --> 0:04:48.599 into conservatorship, and I had some Morgan Stanley. John mackwa 0:04:48.680 --> 0:04:51.279 CEO at the time, and he said, okay, you're in 0:04:51.360 --> 0:04:55.640 charge of liquidity, figure out liquidity. And of course days 0:04:55.640 --> 0:04:58.560 before what very much was running out of liquidity, there 0:04:58.600 --> 0:05:00.840 was no way to get liquidity. In fact, one day 0:05:00.960 --> 0:05:02.840 we were trying to figure out what to do when 0:05:02.839 --> 0:05:04.240 I was on the trading floor and I'm like, can 0:05:04.279 --> 0:05:05.880 we maybe sell the chairs? 0:05:05.880 --> 0:05:07.080 There were Herman Miller chairs. 0:05:07.120 --> 0:05:09.360 I thought that might be a solution that was supposed 0:05:09.360 --> 0:05:11.160 to be funny, but it was actually. 0:05:10.800 --> 0:05:14.400 Really scary at the time, and so no, it was hard. 0:05:14.600 --> 0:05:17.800 But we did this whole series of different teams and 0:05:18.560 --> 0:05:20.760 it worked. You know, MUFG came in, they were an 0:05:20.800 --> 0:05:23.719 incredible partner. The government came in, we became a Fed 0:05:23.800 --> 0:05:26.680 regulated bank. But there were some very scary times and 0:05:26.680 --> 0:05:27.760 a lot of important lessons. 0:05:27.839 --> 0:05:29.479 Okay, so you got that deal done. 0:05:29.680 --> 0:05:32.960 Then presumably some headhunter called you up and said you 0:05:33.040 --> 0:05:36.760 should be the CFO of Google And did you how 0:05:36.760 --> 0:05:39.000 did you tell John Mack or James Gorman you were 0:05:39.000 --> 0:05:41.400 going to leave to be the CFO of a tech company? 0:05:41.600 --> 0:05:42.320 Was that easy to do? 0:05:43.560 --> 0:05:47.440 So twenty fifteen, Morgan Stanley was in a really good spot. 0:05:47.720 --> 0:05:50.440 I happened to be with Bill Campbell, an and iconic 0:05:50.520 --> 0:05:53.120 leader in Silicon Valley. He's been written about as the 0:05:53.120 --> 0:05:58.440 trillion dollar coach. He coached Steve Jobs, Larry Sergei, Sundar Eric. 0:05:58.520 --> 0:06:00.520 So it's a privileged with them. 0:06:01.080 --> 0:06:02.839 And at the time I said, you know, I'm ready 0:06:02.880 --> 0:06:04.320 for the next chapter, but the one thing I'm not 0:06:04.320 --> 0:06:06.599 going to do is be CFO again. We spent two 0:06:06.720 --> 0:06:10.159 hours in his living room and at the end, he said, okay, 0:06:10.279 --> 0:06:13.320 I heard you clearly not CFO, And I said exactly, 0:06:13.760 --> 0:06:14.680 and he said, okay. 0:06:14.520 --> 0:06:16.960 So the best I've got the best idea for CFO of. 0:06:16.920 --> 0:06:21.120 Google, And of course I immediately said, well, I hadn't 0:06:21.120 --> 0:06:21.720 thought of that one. 0:06:21.760 --> 0:06:22.880 That one is interesting. 0:06:24.040 --> 0:06:25.640 But did you tell him this would mean you wouldn't 0:06:25.640 --> 0:06:27.880 be able to work with private equity people as closely 0:06:27.920 --> 0:06:28.440 as you had been. 0:06:28.839 --> 0:06:31.520 You know, somewhat. Times hardship in life is worthwhile. 0:06:31.760 --> 0:06:34.320 So what's it like moving from the East Coast, where 0:06:34.320 --> 0:06:37.160 everything is finance and money, to the West Coast, where 0:06:37.160 --> 0:06:38.120 everything is technology. 0:06:38.120 --> 0:06:39.200 Did you fit in right away? 0:06:39.400 --> 0:06:41.040 And did you really know how to use all the 0:06:41.080 --> 0:06:43.240 computer things that they give you to use? 0:06:45.360 --> 0:06:49.120 So it was it was It was pretty fun. 0:06:49.480 --> 0:06:51.400 There were plenty of times where I would sit around 0:06:51.440 --> 0:06:55.719 in meetings and literally I would be googling terms, And 0:06:55.880 --> 0:06:59.960 at one meeting, Larry Page actually caught me googling terms 0:07:00.400 --> 0:07:02.160 and he kind of pointed that out to other people 0:07:02.160 --> 0:07:04.159 in the room, which was a little embarrassing. But I 0:07:04.160 --> 0:07:06.080 figured there were some things that I could do that 0:07:06.120 --> 0:07:10.080 they can do, and so it was a learning curve 0:07:10.440 --> 0:07:14.400 and my dad always he taught me at a young age, 0:07:15.800 --> 0:07:18.440 a term that I've used constantly with my teams. He 0:07:18.520 --> 0:07:22.120 said in his lab at Stanford, if a physicist could 0:07:22.160 --> 0:07:25.280 not define a quark in under thirty seconds, they didn't 0:07:25.320 --> 0:07:27.400 know what they were talking about, And so I used 0:07:27.400 --> 0:07:29.440 the quark test all the time. If somebody's rambling on 0:07:29.480 --> 0:07:31.160 and on and they can't get to the point, they 0:07:31.200 --> 0:07:32.960 probably don't know what they're talking about. They failed the 0:07:33.000 --> 0:07:35.840 quart test. My finance team knows this core test, and 0:07:35.840 --> 0:07:38.920 at Google I'm working with amazing computer scientists, so they 0:07:38.960 --> 0:07:41.520 never fail the cork test. They can explain things really clearly, 0:07:41.560 --> 0:07:42.880 which shoots you up the learning curve. 0:07:42.920 --> 0:07:44.760 But did you understand what they were talking about from 0:07:44.760 --> 0:07:46.680 the beginning, or did you have a special tutor that's 0:07:46.800 --> 0:07:49.200 taking technology for deedails I had. 0:07:49.080 --> 0:07:51.760 Actually run tech Banking into Google Public, so I had 0:07:51.760 --> 0:07:53.000 a little sneak preview. 0:07:53.040 --> 0:07:56.080 So today for people who are not experts on Google 0:07:56.120 --> 0:07:59.559 and Google Search, Larry Page really developed the page system 0:07:59.600 --> 0:08:02.200 I guess was called, and it was unique. But when 0:08:02.320 --> 0:08:05.120 he came to get the initial money in Silicon Valley, 0:08:05.160 --> 0:08:06.960 people said, well, there's plenty of search engines out here. 0:08:06.960 --> 0:08:09.800 They're like twelve or thirteen search engine companies, and so 0:08:10.280 --> 0:08:12.160 people didn't think it was anything so unique. 0:08:12.160 --> 0:08:13.160 What turned out to be. 0:08:13.160 --> 0:08:16.360 So unique about the page system that it made Google 0:08:16.520 --> 0:08:17.720 such a powerful company. 0:08:17.960 --> 0:08:19.680 I actually remember those days because I was one of 0:08:19.720 --> 0:08:21.480 the people who said, why do we need It was 0:08:21.560 --> 0:08:23.760 actually the eighth search engine? Why do you need the 0:08:23.800 --> 0:08:26.040 eight search engine? And I was at Morgan Stanley at 0:08:26.080 --> 0:08:31.320 the time nineteen ninety eight running banking, and our research analyst, 0:08:31.440 --> 0:08:35.400 Mary Meeker and iconic analyst, pulled her team together and said, 0:08:35.440 --> 0:08:37.600 you know what, Let's do a test. Let's look at 0:08:37.679 --> 0:08:41.080 all the search engines. Let's do queries and see speed 0:08:41.080 --> 0:08:44.480 and relevance of response. And I think she may have 0:08:44.520 --> 0:08:47.440 started with that eight search engine question as well, but 0:08:47.559 --> 0:08:49.000 it quickly rose to the top. 0:08:49.200 --> 0:08:51.480 And that has been the ethos all along. 0:08:51.920 --> 0:08:54.880 We still to this day have more than one hundred 0:08:55.040 --> 0:08:59.400 product innovations every quarter. The whole idea is continue challenging 0:08:59.400 --> 0:09:03.560 ourselves about how to make the product better, more relevant, faster. 0:09:04.040 --> 0:09:07.199 And what's extraordinary sitting where we are today is how 0:09:07.240 --> 0:09:10.160 searches evolve. So back then it was ten blue links. 0:09:10.559 --> 0:09:13.160 Whoever's old enough in this room to remember ten blue links, 0:09:13.559 --> 0:09:14.240 That's what it was. 0:09:14.280 --> 0:09:15.120 And then it went to. 0:09:16.559 --> 0:09:19.680 Image search, voice search, and now multimodal search. If I 0:09:19.720 --> 0:09:22.000 want your tie, I can take a picture of your tie, 0:09:22.440 --> 0:09:25.920 and then I can just I can lens it, and 0:09:25.960 --> 0:09:28.040 I can find a place to buy your tie. So 0:09:28.080 --> 0:09:31.960 this whole evolution of search just keeps extending the runway 0:09:32.000 --> 0:09:32.400 for a search. 0:09:32.400 --> 0:09:34.240 So it's very different obviously today than it was. 0:09:34.559 --> 0:09:36.680 I suppose I do a Google search on something. Maybe 0:09:36.720 --> 0:09:38.760 I shouldn't be doing a Google search on or. 0:09:38.679 --> 0:09:40.240 Something not that you ever do. 0:09:40.320 --> 0:09:43.360 I wouldn't do that, but I just theoretically can somebody 0:09:43.360 --> 0:09:45.720 from Google, an officer like you look up what I've searched. 0:09:46.400 --> 0:09:50.640 No, you cannot, absolutely, yeah, protected right or protected. 0:09:50.559 --> 0:09:51.880 Even if the government comes along. 0:09:54.120 --> 0:09:56.160 We do not look at what you search. Can go 0:09:56.200 --> 0:09:58.559 into incognitumo, but we do not look at what you search. 0:09:58.720 --> 0:09:59.040 Okay. 0:09:59.160 --> 0:10:01.880 So the company a long time was spelled was called Google, 0:10:01.920 --> 0:10:04.640 and Google used to be spelled differently. Why did they 0:10:04.640 --> 0:10:07.160 spell Google that way as opposed their way it was 0:10:07.200 --> 0:10:10.640 originally spelled, which was e L. Did they not know 0:10:10.720 --> 0:10:11.960 that was spelled differently? 0:10:12.480 --> 0:10:13.960 Well, there are a couple of stories around this. 0:10:14.040 --> 0:10:17.280 So one of the stories that I think is true 0:10:17.400 --> 0:10:20.920 and fun is that one of the early venture checks 0:10:21.040 --> 0:10:22.920 actually wrote it that way, so they went with it. 0:10:23.200 --> 0:10:26.000 Okay, so why did Google is the brand name that's 0:10:26.040 --> 0:10:28.000 working very well, companies making a lot of money and 0:10:28.040 --> 0:10:30.720 so forth, But why did you need to go to alphabet? 0:10:30.760 --> 0:10:31.960 And who came up with that name? 0:10:32.960 --> 0:10:37.120 So Larry and Sergei had a vision about kind of 0:10:37.160 --> 0:10:41.160 the next iteration, and there were a lot of different 0:10:41.240 --> 0:10:44.600 things that they were investing in, the whole spirit of 0:10:44.640 --> 0:10:47.080 which is you want to make sure you're investing for 0:10:47.120 --> 0:10:50.480 long term, investing for the future. And in the earliest days, 0:10:50.840 --> 0:10:53.200 what they did is they created something called X. It 0:10:53.240 --> 0:10:56.080 was the moonshot factory within Google Google X, and it 0:10:56.120 --> 0:10:58.319 gave birth to things like Gmail, I mean made it 0:10:58.800 --> 0:11:01.439 was really relevant for all of the type of innovation 0:11:01.480 --> 0:11:04.839 that came out of Google. And by twenty fifteen, their 0:11:04.960 --> 0:11:08.680 view was, we want to be able to avoid distraction 0:11:08.800 --> 0:11:10.520 on Google. Let Google do what it's going to do 0:11:10.679 --> 0:11:14.440 and create another set of businesses that the founders could 0:11:14.440 --> 0:11:17.520 focus on and really nurture growth outside of it. And 0:11:17.559 --> 0:11:19.480 so the word is you would know better than anyone 0:11:19.559 --> 0:11:22.280 is alphabets, and so you put the two together, and 0:11:22.360 --> 0:11:23.040 that was the goal. 0:11:23.520 --> 0:11:24.200 So it used to be. 0:11:24.240 --> 0:11:26.600 When Google was started, you had what was called twenty 0:11:26.679 --> 0:11:29.480 percent time, So for twenty percent of your time, you 0:11:29.480 --> 0:11:29.880 could do. 0:11:29.840 --> 0:11:30.600 Whatever you wanted. 0:11:31.040 --> 0:11:33.040 Theoretically it might be helpful at a company, but it 0:11:33.080 --> 0:11:35.920 wasn't supposed to be necessarily, so you still have twenty 0:11:36.000 --> 0:11:37.440 percent time or they go away. 0:11:37.840 --> 0:11:40.520 Well, it was actually a little more structured than that. 0:11:40.640 --> 0:11:43.120 The goal was if you had some great engineering idea 0:11:43.120 --> 0:11:44.720 and you wanted to launch a new product, you could 0:11:44.720 --> 0:11:45.680 do it in one of two ways. 0:11:45.920 --> 0:11:48.800 You could leave or you could be told. 0:11:48.640 --> 0:11:50.720 You know what, in twenty percent of your time, why 0:11:50.720 --> 0:11:53.080 don't you go experiment with this and see if. 0:11:53.000 --> 0:11:53.600 You can grow it. 0:11:54.040 --> 0:11:58.440 So rather than having great ideas constantly leaving, the view 0:11:58.440 --> 0:12:01.640 as let's nurture the talent, let's give people these growth opportunities, 0:12:01.720 --> 0:12:03.920 let's give it a go. And so that's what the 0:12:03.960 --> 0:12:04.960 twenty percent time was. 0:12:05.160 --> 0:12:08.319 Any twenty percent time product ever get to the market. 0:12:08.880 --> 0:12:12.439 Well, a Gmail is not an inconsequential billions of users. 0:12:12.800 --> 0:12:16.120 Google Brain came out of that. It's our core part 0:12:16.160 --> 0:12:19.440 of our AI business, and then we've continued to evolve it, 0:12:19.520 --> 0:12:21.800 so it moved over to become ax. 0:12:21.840 --> 0:12:22.680 Weymo came out of it. 0:12:22.720 --> 0:12:24.280 So there's quite quite a bit and quite a bit 0:12:24.320 --> 0:12:26.000 of features and applications. 0:12:26.120 --> 0:12:28.559 Think of waymo. Are we going to have driverless cars 0:12:28.559 --> 0:12:29.400 in our lifetime? 0:12:29.800 --> 0:12:32.559 Well, I welcome everybody to come to San Francisco because 0:12:32.559 --> 0:12:35.280 you can actually hail a way Moo in San Francisco, 0:12:35.360 --> 0:12:36.640 hop in it and get where you want to go. 0:12:36.679 --> 0:12:37.640 And it's pretty remarkable. 0:12:37.800 --> 0:12:38.480 Have you done that? 0:12:38.559 --> 0:12:40.640 Absolutely brilliant safe. 0:12:41.040 --> 0:12:43.680 It's so safe that the most fascinating part is within 0:12:43.720 --> 0:12:46.760 about fifteen seconds people are bored because it's so safe there, 0:12:46.760 --> 0:12:47.160 like they. 0:12:47.040 --> 0:12:48.520 Realize, you know, we don't need a helmet or in 0:12:48.559 --> 0:12:49.240 the nuget's safe? 0:12:49.320 --> 0:12:49.440 Right? 0:12:49.480 --> 0:12:52.120 Do you need a helmet with many drivers on the road. 0:12:52.240 --> 0:12:54.400 So for a young woman that's watching this or a 0:12:54.400 --> 0:12:57.440 young man, and what are the recommendations you'd have to 0:12:57.480 --> 0:13:00.320 get ahead? And the finance world technology we're is it 0:13:00.360 --> 0:13:02.760 be smarter than other people, be nicer than the other people, 0:13:03.000 --> 0:13:05.000 be harder working. 0:13:05.000 --> 0:13:07.360 What is it that takes to be successful? 0:13:07.800 --> 0:13:10.680 Well, there's no substitute for hard work, because the hard 0:13:10.720 --> 0:13:13.439 work actually gets you smarter enough the learning curve faster. 0:13:13.600 --> 0:13:16.160 So most certainly that's one of them. I think the 0:13:16.200 --> 0:13:19.520 other I've already said chart your career work for somebody 0:13:19.559 --> 0:13:21.199 who's going to take a risk on you and give 0:13:21.240 --> 0:13:24.120 you runway. But very importantly, we need to do that 0:13:24.200 --> 0:13:26.040 for someone. So at one point, when I was asked 0:13:26.080 --> 0:13:29.800 to run technology equity capital markets on the equity trading floor, 0:13:30.360 --> 0:13:33.680 a senior partner called me into his office and he said, 0:13:33.679 --> 0:13:35.520 I will be your I will be your air cover. 0:13:36.040 --> 0:13:37.520 All the guys that were going to sell you use 0:13:37.559 --> 0:13:39.680 these military terms. There a lot of military guys, but 0:13:39.760 --> 0:13:42.000 it was a good one. I will be your air cover. 0:13:42.400 --> 0:13:44.320 I think you will soar, but if you stumble, I'm 0:13:44.360 --> 0:13:47.320 here to be your air cover. I think everyone needs 0:13:47.360 --> 0:13:49.240 air cover, and I think we all need to. 0:13:49.200 --> 0:13:49.960 Be air cover. 0:13:50.559 --> 0:13:53.600 And the other is keep learning and keep growing. And 0:13:53.640 --> 0:13:56.120 when you're plateauing, my line was what's my highest and 0:13:56.160 --> 0:14:00.000 best use and don't do it on a specific timeline, 0:14:00.360 --> 0:14:03.080 but keep evolving and if you go to the right people, 0:14:03.080 --> 0:14:05.160 they'll keep opening doors and take those doors. 0:14:05.160 --> 0:14:06.280 And then finally, use your voice. 0:14:06.440 --> 0:14:08.440 You have a challenge that many people would like to 0:14:08.480 --> 0:14:10.400 have but they don't have, which is you've got over 0:14:10.440 --> 0:14:14.320 one hundred billion dollars of cash, and so are you 0:14:14.360 --> 0:14:17.000 going to invest that in private equity firms, or are 0:14:17.040 --> 0:14:20.160 you going to do new technology? What are you going 0:14:20.200 --> 0:14:21.880 to do with one hundred billion dollars more than one 0:14:21.920 --> 0:14:25.280 hundred billion dollars of cash? And you know, have you 0:14:25.320 --> 0:14:26.960 thought about that? You have people coming up to you 0:14:27.040 --> 0:14:30.080 all the time with great ideas for that cash. 0:14:30.120 --> 0:14:32.920 We do as you would imagine. So, look, we're continuing 0:14:32.920 --> 0:14:35.040 to invest in the business. There's a lot of extraordinary 0:14:35.160 --> 0:14:38.320 upside in the business. And then we do make investments 0:14:38.360 --> 0:14:41.240 and acquisitions, so do all of our peers. There's a 0:14:41.240 --> 0:14:43.360 lot that's exciting going on in the world, and so 0:14:43.400 --> 0:14:46.400 we're looking across the board. Starts within the business, then 0:14:46.400 --> 0:14:49.800 it goes to investments and acquisitions, then obviously return to 0:14:49.840 --> 0:14:52.960 capital through a not in consequential share repurchase program. 0:14:53.120 --> 0:14:54.840 Let's talk about artificial intelligence. 0:14:55.360 --> 0:14:57.800 Artificial intelligence has gotten a lot of publicity in the 0:14:57.880 --> 0:15:02.280 last year or so, and open ai has got an 0:15:02.400 --> 0:15:05.520 enormous amount of it, and they have an affiliation with 0:15:05.560 --> 0:15:06.720 another technology company. 0:15:06.760 --> 0:15:08.760 I can't remember the name of it. I've heard that 0:15:08.880 --> 0:15:09.440 another one. 0:15:09.600 --> 0:15:12.400 But do you have your own kind of open ai 0:15:12.840 --> 0:15:14.960 company or do you do it all internally? And what 0:15:15.000 --> 0:15:17.200 do you do to compete with open ai? And this 0:15:17.280 --> 0:15:18.480 other technology company. 0:15:19.320 --> 0:15:24.000 So we've had We've been infusing product at Google with 0:15:24.120 --> 0:15:28.080 AI for more than a decade. In fact, billions of 0:15:28.120 --> 0:15:32.400 people today are benefiting from AI across our products. It's 0:15:32.440 --> 0:15:35.880 benefiting what you see in search, in maps, and commerce 0:15:36.040 --> 0:15:40.600 and YouTube. You know, I just mentioned multimodal search, the 0:15:40.640 --> 0:15:43.840 ability to search with your camera, when you search for 0:15:43.960 --> 0:15:48.360 your kids and photos, that's AI. So AI has continued 0:15:48.400 --> 0:15:51.360 to be a way to enhance what the product experiences. 0:15:51.440 --> 0:15:54.200 And we've done that historically through two groups within Google. 0:15:54.200 --> 0:15:56.880 One Google Brain I already mentioned, and the other is 0:15:56.920 --> 0:16:01.640 deep Mind, an extraordinary acquisition back years ago led by 0:16:01.840 --> 0:16:04.880 an extraordinary entrepreneur, Demesistatus, And we've put the two together 0:16:05.440 --> 0:16:09.800 last year, which has been really exciting. And so we 0:16:09.840 --> 0:16:13.880 are building on that foundation that has been an experience 0:16:13.920 --> 0:16:15.080 for the last decade. 0:16:15.240 --> 0:16:18.640 What's the excitement of work in technology in the Silicon Valley? 0:16:18.920 --> 0:16:21.240 Is it even more exciting than working in finance? Or 0:16:21.280 --> 0:16:22.200 not quite as exciting? 0:16:22.200 --> 0:16:25.600 But okay, it's hard to believe it's more exciting, ed. 0:16:26.200 --> 0:16:29.680 I mean, we're living in the most extraordinary time with AI. 0:16:29.760 --> 0:16:33.280 Bill Gates just said that I completely agree. Engineers who've 0:16:33.280 --> 0:16:35.760 been at Google since inception are saying that this is 0:16:35.800 --> 0:16:38.600 the most exciting time in computer science in our lifetime, 0:16:39.000 --> 0:16:42.160 which always strikes me as profound because Google's done okay, 0:16:42.800 --> 0:16:47.520 And what's extraordinary about it really goes to building on 0:16:47.600 --> 0:16:52.600 this decade of innovative work in AI. And so where 0:16:52.600 --> 0:16:53.280 are we now. 0:16:53.440 --> 0:16:56.080 We're at the What we're doing. 0:16:56.200 --> 0:16:59.960 Is we're addressing some of the most profound social challenge 0:17:00.160 --> 0:17:03.720 is with AI in ways that are transformative. So to 0:17:03.720 --> 0:17:06.760 give you an a couple of examples, I think that 0:17:06.800 --> 0:17:08.800 one of the extraordinary places for all of us, and 0:17:08.840 --> 0:17:09.880 we've heard a lot about it. 0:17:09.800 --> 0:17:13.720 Here over lunch, is healthcare. And part of the reason is. 0:17:13.760 --> 0:17:18.240 It's the ability with AI to aggregate so much data 0:17:18.240 --> 0:17:21.919 that you can actually have a level of diagnosis that 0:17:22.000 --> 0:17:25.359 is better than what specialists can do. So one example 0:17:25.640 --> 0:17:29.359 breast cancer. Back in twenty fifteen, Google had a breakthrough 0:17:29.800 --> 0:17:33.639 in detection early detection of metastatic breast cancer. One in 0:17:33.760 --> 0:17:37.040 seven women will be diagnosed with breast cancer. I was 0:17:37.080 --> 0:17:39.920 one of those. I've had breast cancer twice, so when 0:17:39.960 --> 0:17:42.560 I heard about this, I did the only rational thing. 0:17:42.600 --> 0:17:45.240 I called my oncologist at Memorial Slung Kettering, and I 0:17:45.280 --> 0:17:48.959 said is this really as important as I hope? And 0:17:49.000 --> 0:17:53.919 he said unequivocally, because only with AI can we democratize healthcare. 0:17:54.400 --> 0:17:59.240 It's the only way that oncologists everywhere, radiologists everywhere, all 0:17:59.280 --> 0:18:02.080