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Speaker 1: From Mahard. We're Innovation, Money and Power Collie in Silicon Valley, NBN.

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Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 2: I'm Caroline heard at Bloomberg's world headquarters in New York.

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Speaker 3: And alongsider for One more Day. I'm Ed Lovelow, also

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Speaker 3: in New York. This is Bloomberg Technology.

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Speaker 2: Coming up, we'll get a read on the health of

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Speaker 2: the tech labor market that.

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Speaker 4: As US jobs report comes in hot it is there.

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Speaker 4: With the read through into Silicon Valley, we'll discuss last.

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Speaker 3: We stick on the topic of jobs and new filing

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Speaker 3: shows Apple slashed around six hundred rolls after scrapping its

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Speaker 3: car and screen projects.

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Speaker 5: Will bring you that. Bloomberg Reporting and.

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Speaker 2: Meta changes its policies around artificial intelligence to allow more

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Speaker 2: AI generated content to remain on its platforms. We'll discuss

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Speaker 2: that and so much more throughout this hour. And what

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Speaker 2: are you watching on more of the MACROPA Just the.

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Speaker 3: Basics of the jobs numbers, three hundred and three thousand,

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Speaker 3: that's hot, the estimate two hundred and fourteen thousand worth,

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Speaker 3: noting that there was also an upward revision to twenty

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Speaker 3: two thousand. Net for the prior two months on the

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Speaker 3: money when it comes to.

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Speaker 5: Wages or earnings.

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Speaker 3: As you said, you know, we'll think about what this

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Speaker 3: means for specific tech names.

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Speaker 5: In just a moment.

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Speaker 3: But I think that it's good news in the sense

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Speaker 3: Corporate America is looking great, you know, powering the economy.

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Speaker 3: But the concern clearly is the timing of a FED

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Speaker 3: rate cut. Higher rates discount the present value of future

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Speaker 3: cash flows, as we always say on this show, and

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Speaker 3: the market right now pushing out that rate cut bet

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Speaker 3: to September from July. That's kind of where my head's

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Speaker 3: out right now.

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Speaker 2: Certainly, let's just get our heads around what happened with

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Speaker 2: the job's number, what it means for a labor force,

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Speaker 2: particularly in the technology sector. LinkedIn Head of Economics America's

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Speaker 2: Corey Katang is joining us for look your take on

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Speaker 2: the numbers, because all we've had inbound wise is companies

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Speaker 2: becoming more contained with their hiring, more focused on just

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Speaker 2: the AIS part of the equation and ultimately letting people go,

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Speaker 2: what do you make of the fact that still we've

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Speaker 2: got such a resilient jobs market coin.

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Speaker 6: Well, today's number was a solid number. It's important to

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Speaker 6: keep in mind that the job's number in terms of

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Speaker 6: total jobs added has actually been fluctuating on average between

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Speaker 6: two and three hundred since June twenty twenty three. So

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Speaker 6: we're actually seeing a fair amount of steadiness in the

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Speaker 6: labor market in terms of the number of jobs added.

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Speaker 6: When you think about what's happening in the tech sector,

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Speaker 6: we're seeing that the tech sector has also been sort

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Speaker 6: of stabilized since June twenty twenty three. Based on our

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Speaker 6: data a LinkedIn, we've see that the pace of hiring

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Speaker 6: at tech has leveled out.

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Speaker 5: It's still well.

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Speaker 6: Below what it was before the pandemic, but we are

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Speaker 6: no longer seeing massive drop offs in terms of hiring

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Speaker 6: in tech.

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Speaker 5: Corey, let's stick with that.

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Speaker 3: So the pace of hiring in technology has leveled off

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Speaker 3: according to your data. Therefore, it's not a big contributor

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Speaker 3: to that three to three we saw this morning.

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Speaker 5: The sector.

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Speaker 6: I mean, that's right, two thirds of that three oh

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Speaker 6: three is coming from just three sectors. Government, leisure and hospitality,

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Speaker 6: hospitals and healthcare. That's the case this month, that was

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Speaker 6: the case last month as well.

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Speaker 3: I'm also interested that in money, wages, earnings, call it

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Speaker 3: what you will, Karen and I pointed out, you know,

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Speaker 3: on estimates, but we're not hearing that, particularly in the

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Speaker 3: context of AI.

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Speaker 5: We heard from Brad light Cap.

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Speaker 3: The COO of Open AI, on the show yesterday there

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Speaker 3: is a talent war, and a net result of talent

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Speaker 3: war is usually you've got to pay more, either in

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Speaker 3: cash or in stock. What's your data telling you.

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Speaker 6: Well, certainly for AI roles, we're talking about technical AI roles,

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Speaker 6: not just roles that may use AI. For those technical

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Speaker 6: AI roles, there's a shortage of supply of workers that

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Speaker 6: has been growing. We've seen in LinkedIn data that the

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Speaker 6: number of workers who have those technical AI skills has

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Speaker 6: been rising and rising rapidly, but it hasn't been able

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Speaker 6: to keep up with the demand for these workers. So

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Speaker 6: that's driving wages up and companies are going to consider

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Speaker 6: other options, right They're also going to look for other

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Speaker 6: places like Brazil and India where can they find these

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Speaker 6: workers with these technical skills in order to build AI

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Speaker 6: tools in house to foster productivity and innovation, but also

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Speaker 6: managed to keep some control on their costs.

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Speaker 2: Interesting we're hearing of course that ultimately immigration is helping

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Speaker 2: keep down that wage inflation pressure. That's happening here in

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Speaker 2: the United States as well. I wonder how many of

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Speaker 2: those are coming into the tech sector. Is their talent

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Speaker 2: coming in from abroad at the moment, do you think?

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Speaker 1: Coy?

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Speaker 6: So right now we're not seeing a ton of talent

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Speaker 6: coming into the tech sector, but we are seeing a

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Speaker 6: recovery from the pandemic. So the pandemic really knocked off

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Speaker 6: a lot of movement within the tech sector, and we're

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Speaker 6: starting to see those numbers come back up.

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Speaker 5: Now.

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Speaker 6: There is a gap that was created by the workers

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Speaker 6: who didn't come in twenty twenty twenty twenty one, and

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Speaker 6: so we're still not there in terms of making up

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Speaker 6: the gap for those works, but it's starting to come

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Speaker 6: back at a level at a pace that can help

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Speaker 6: support that sector.

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Speaker 2: What about diversity, I mean, this is something that we

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Speaker 2: always need to keep a track on that ultimately the

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Speaker 2: disparity in wages that are going to people to color

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Speaker 2: versus white workers, women versus men.

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Speaker 4: How are the demographics shaking out at the moment.

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Speaker 6: So one thing we've actually recently seen at LinkedIn, we've

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Speaker 6: done an analysis that says when the labor market slows down,

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Speaker 6: we see less women hired into leadership and that's not

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Speaker 6: a situation where less women are applying for leadership. When

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Speaker 6: the labor market slows down, they're applying more, but they're

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Speaker 6: less likely to make their way into the top levels

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Speaker 6: of leadership. So as the labor market slows down, it's

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Speaker 6: very clear that everyone is disproportionately impacted. For example, the

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Speaker 6: pandemic wiped out about five years of gains in the

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Speaker 6: Black White unemployment gap. So as we continue to see

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Speaker 6: some of the air being let out of the labor market.

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Speaker 6: Right now, it looks stable, but if we do continue

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Speaker 6: to see some air light out as expected until we

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Speaker 6: start to see interest rates cut, that is certainly going

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Speaker 6: to proportionately impact workers.

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Speaker 3: LinkedIn Head of Economics for America's Corey Contenga, it's great

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Speaker 3: to have you back on the program.

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Speaker 5: Thank you.

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Speaker 3: Some important breaking headlines and an update. The FAA says

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Speaker 3: there is a ground stop at JFK and Newark Airports.

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Speaker 3: In a statement, the FAA says at four point eight

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Speaker 3: magnitude earthquake in New Jersey may impact some air traffic

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Speaker 3: facilities in New York, New Jersey, but also Philadelphia and Baltimore.

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Speaker 3: Air traffic operations are resuming as quickly as possible, and

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Speaker 3: for more real time information go to the official channels,

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Speaker 3: but we'll keep you posted here on Bloomberg Technology as well.

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Speaker 3: I'm one of those people due to fly back to

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Speaker 3: the West Coast from one of those airports this afternoon.

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Speaker 3: Let's see what happens and also stick with the job

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Speaker 3: story for a moment. According to filings with the California

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Speaker 3: Employment Development Department, Apple laid off more than six hundred

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Speaker 3: employees as part of the decisions to end its car

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Speaker 3: and smart watch display projects. More let's go out to

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Speaker 3: Bloomberg's Mark German. This is based on the warn notices,

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Speaker 3: a really important place to look.

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Speaker 5: What ima.

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Speaker 7: So we've known about the layoffs for quite some time. Obviously,

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Speaker 7: we broke the news in February that the Apple car

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Speaker 7: project was being ended, and we also broke the news

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Speaker 7: that the Apple micro led display project related to next

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Speaker 7: generation Apple watches was being ended. The display project is

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Speaker 7: less known, so me explained it for a minute. This

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Speaker 7: was an effort where Apple was custom designing its own

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Speaker 7: screens for the first time. Typically they relied on designs

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Speaker 7: from Samsung, LG, what have you. For the first time,

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Speaker 7: they were designing and test building test manufacturing their own

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Speaker 7: displays at facilities in Santa Clara in Silicon Valley, California.

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Speaker 7: So both of those projects ending. The people are some

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Speaker 7: of the people part of the projects being laid off.

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Speaker 7: We've known that. Now thanks to the war notices, we

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Speaker 7: have a number. The total was six hundred and fourteen

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Speaker 7: people right in California. Now the layoffs are actually a

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Speaker 7: lot higher than that. There was a big group of

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Speaker 7: Apple car employees working out of a secretive facility in

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Speaker 7: Arizona outside Phoenix, at an old General Motors facility, and

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Speaker 7: then in Asia you had several hundred people also working

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Speaker 7: on the display project. So in California, six hundred and

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Speaker 7: fourteen people, but the layoffs probably a bit closer to

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Speaker 7: one thousand.

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Speaker 4: Mark.

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Speaker 2: Can you give us the context of what one thousand

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Speaker 2: is relative to how many employees Apple has?

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Speaker 7: You know, Apple has about one hundred and eighty thousand employees,

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Speaker 7: maybe a little bit more, a little bit less than that,

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Speaker 7: but that is a rough estimate that that includes both

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Speaker 7: corporate and retail employees. On the on the corporate side,

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Speaker 7: it's probably closer to seventy thousand employees, right, So a

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Speaker 7: couple percentage points of the company. Again, these are not

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Speaker 7: the mass layoffs that you've seen from some of the

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Speaker 7: other companies in Silicon Valley. We're not talking about ten, eighteen,

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Speaker 7: twenty thirty percent here. But still for Apple, this is

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Speaker 7: three major rounds of layoffs. And I say major major

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Speaker 7: contextually for Apple because they just don't do this right.

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Speaker 7: So you had San Diego in January one hundred and

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Speaker 7: twenty one people. This was an office where they did

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Speaker 7: annotation and testing and improvement to Siri. They offer jobs

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Speaker 7: to those people in Texas, but you can probably count

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Speaker 7: on one or two hands how many people will be

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Speaker 7: moving from San Diego to Texas for this role. And

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Speaker 7: so that's one hundred and twenty one people. Then in

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Speaker 7: February another six hundred and fourteen people, plus the several

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Speaker 7: other one hundred in Asia in Arizona. So it is

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Speaker 7: quite notable for Apple that we've come to this point

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Speaker 7: where they're killing R and D projects and they're laying

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Speaker 7: people off.

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Speaker 2: Mar Gooman, we thank you so much for coming on

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Speaker 2: in a day where you're meant to be resting. Thank

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Speaker 2: you for spilling the means when it comes to Apple.

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Speaker 2: We've got some more stocks to watch for. At this moment,

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Speaker 2: Paramount currently under pressure. Now this is what we see

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Speaker 2: reporting coming from CNBC that sky Dance's unique offer for

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Speaker 2: Paramount is a special committee has a company continuing to

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Speaker 2: trade publicly.

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Speaker 4: But get this.

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Speaker 2: Ultimately, the offer coming from Skydance will mean that the

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Speaker 2: new ecuity will be dilutive for existing shareholders, but will

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Speaker 2: align voting in each economic control in a way that

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Speaker 2: hasn't been the case with the Redstone family. Of course,

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Speaker 2: this is as we see Skuydoance taking over that Redstone

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Speaker 2: Sherry Redstone element of control over Paramount's parent company shares.

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Speaker 2: Keep a close eye on this potential deal. We're down

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Speaker 2: four and a half percent after a rally yesterday. This

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Speaker 2: is Bluemo Technology. Let's just go to another key stock

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Speaker 2: that's actually on the move today to the higher side, Meta.

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Speaker 2: But this is as the company is actually announcing it's

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Speaker 2: changing its artificial intelligence policies. It's going to allow for

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Speaker 2: more content generated by AI to remain on its platforms

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Speaker 2: for more.

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Speaker 4: Let's bring in bluemos Kirk Wagner.

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Speaker 2: For ultimately the policy nuance here, they're going to allow it,

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Speaker 2: but they'll market.

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Speaker 5: That's right.

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Speaker 8: So a couple of years ago, they came out with

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Speaker 8: this manipulated media policy which basically said, you know, if

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Speaker 8: someone uploads a video that makes it look like you, Caroline,

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Speaker 8: are saying something you didn't actually say, it's been AI

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Speaker 8: generated to sort of mislead people, that they would take

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Speaker 8: that down. And now what they're saying is they're going

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Speaker 8: to leave it up, but they're going to label it.

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Speaker 8: And the idea being that if those types of videos

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Speaker 8: do not violate a different rule within the company, if

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Speaker 8: the only sort of you know, issue is that it

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Speaker 8: was AI generated, they're going to leave it up even

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Speaker 8: if it is misleading. Now, these things could still be

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Speaker 8: fact checked, right, so there's a couple different ways that

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Speaker 8: the company could sort of label these as AI generated

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Speaker 8: or misleading, but they are going to lead them up

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Speaker 8: instead of taking them down.

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Speaker 4: Kut. How does this differ from others, Well, you know.

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Speaker 8: X as we've seen, has sort of they have a

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Speaker 8: manipulated media policy as well, but it doesn't not necessarily

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Speaker 8: convinced that they're able to enforce these things in the

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Speaker 8: way that they say they are. You know, we've seen

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Speaker 8: this happen with the twenty twenty election. We saw some

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Speaker 8: manipulated videos and audio show up. We've already heard complaints

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Speaker 8: that this might be an issue for twenty twenty four, right,

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Speaker 8: So the reason we're following this news and why these

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Speaker 8: policies matter, of course, even if it is a small

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Speaker 8: number of actual post hosts that are impacted, it's that

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Speaker 8: those posts could be you know, shared by President Trump,

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Speaker 8: President Biden, major campaigns are that are trying to influence

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Speaker 8: this election, and so it's important that the company figure

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Speaker 8: this out before twenty twenty four happens.

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Speaker 2: Okay, And this does come into such a political context,

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Speaker 2: It comes in such context at the moment of just

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Speaker 2: generative AI being the flavor de jure. And are we

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Speaker 2: seeing ultimately companies having to front run politicians and indeed

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Speaker 2: regulatory change at this.

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Speaker 8: We are because there is no regulatory framework for how

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Speaker 8: these companies shouldn't moderate AI posts, but specifically generative AI.

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Speaker 8: And so we've seen Nick Klegg at Meta come out

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Speaker 8: publicly several times already in the last couple months and

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Speaker 8: say we need rules, We need you know, government and

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Speaker 8: regulators to basically come in and put some guardrails on

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Speaker 8: this thing, because otherwise it's up to the companies themselves

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Speaker 8: and Meta you know, to its credit, is trying to

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Speaker 8: be proactive, or at least that's what they seem to

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Speaker 8: be doing. But you know, unless there's anybody holding them accountable,

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Speaker 8: holding you Tube and X and other platforms accountable, it's

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Speaker 8: just everyone for themselves here. And so you know they

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Speaker 8: are doing this proactively because there is no framework from

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Speaker 8: the US or other governments.

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Speaker 4: Really, Wagner, we thank you.

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Speaker 3: Welcome back to Bloomberg Technology.

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Speaker 5: I'm ed LOVEO.

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Speaker 4: I'm Caroline Hyde.

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Speaker 5: Okay, a quick update.

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Speaker 3: An earthquake rattled northern New Jersey on this morning, shook

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Speaker 3: building offices in Manhattan, and was felt on Long Island

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Speaker 3: and in New York's Hudson Valley. Preliminary reports say it's

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Speaker 3: a four point seven magnitude tremor. New York Governor Kathi

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Speaker 3: Hokel posting about the quake, saying her team's assessing impact

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Speaker 3: and damage. Headlines also out that President Biden has been briefed.

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Speaker 5: Caroline.

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Speaker 2: You local San Franciscans are just going like, what are

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Speaker 2: they worrying about?

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Speaker 4: Ed, what have you got?

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Speaker 5: Okay, check this out for a second.

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Speaker 3: So it looks like I'm not the only Bay Area

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Speaker 3: local spending some time in New York City this week.

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Speaker 3: That was Levi CEO Michelle Gas ringing the bell at

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Speaker 3: the New York Stock Exchange earlier today, just days after

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Speaker 3: the company reported earnings, but also of significant milestone or

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Speaker 3: anniversary since the IPO five years interesting lifting EPs forecast

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Speaker 3: for the full year, reporting adjusted knit income for the

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Speaker 3: first quarter that beats estimates discipline cost cutting. There's a

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Speaker 3: bigger story out there, and it's Beyonce. Delighted to say

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Speaker 3: that Levi Michelle Gas joins us on set.

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Speaker 9: Thanks for having me, ed carolinem thrilled to be here.

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Speaker 3: I think we should just get right to Beyonce. To

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Speaker 3: those who are living under a rock or perhaps didn't

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Speaker 3: see it, Beyonce dropped the track list first for her

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Speaker 3: new album. One of the titles was Levi Eyes Jeans.

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Speaker 3: There was next Trye in there. That must be quite

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Speaker 3: a boost you got this week.

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Speaker 9: Well, I mean, let me just we are just so

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Speaker 9: honored that someone like Beyonce, who is a global icon

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Speaker 9: of a culture shaper, would.

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Speaker 4: Name a song after us.

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Speaker 9: Completely organic by the way, ed so, but.

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Speaker 5: We will hold it on. What do you mean by

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Speaker 5: completely organic?

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Speaker 9: That we didn't have anything to do with her?

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Speaker 5: Naming a song after us.

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Speaker 4: Yeah, but that being said.

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Speaker 9: I will say, I mean to me, you know, one

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Speaker 9: of the things that's so critical about Levi's. I mean,

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Speaker 9: we've been around for one hundred and seven years, deep heritage, authenticity,

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Speaker 9: but it's so important that we remain at the center

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Speaker 9: of culture. Right We're very We're a very inviting brand.

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Speaker 9: We resonate with so many different people to be at

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Speaker 9: that center of culture and have that youthfulness and relevance.

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Speaker 9: And there's no better testament to being at the center

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Speaker 9: of culture to have someone like Beyonce actually on her

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Speaker 9: own name a song after us.

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Speaker 4: So we are just thrilled. Has that done two sales

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Speaker 4: in the last week or so?

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Speaker 9: Can you get so it's so you know, so so

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Speaker 9: very early, But I think it's it's part of I

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Speaker 9: think the bigger thing that's happening right now is Levi's

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Speaker 9: is having a great moment. I mean, you just mentioned

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Speaker 9: we were so pleased to start the year off so strong,

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Speaker 9: exceeding expectations inside and externally, but underneath that a lot

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Speaker 9: of goodness. The denim category, after some volatility the last

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Speaker 9: couple of years, has stabilized. We're expecting the category to

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Speaker 9: grow globally in the mid single digits. Importantly, Levi's is

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Speaker 9: growing share, so in the US we're going share with

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Speaker 9: men's and women's, with youth, with the middle income consumer,

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Speaker 9: which is a great bell weather to the health of

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Speaker 9: the consumer. And you know, as we think about our

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Speaker 9: business kind of driving that optimism, I'd first say it's

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Speaker 9: our direct to consumer that business up now for eight

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Speaker 9: consecutive quarters, up eight percent. And also what's driving that

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Speaker 9: is what's happening in Denham, Like Levi's is having a moment,

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Speaker 9: Denim's having a moment. Head to toe denim dressing. We're

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Speaker 9: leading in trends. So as we think about our men's

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Speaker 9: and women's business, loose fits, baggy fits up forty percent,

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Speaker 9: our tops are exceeding expectations, dresses skirts, denim skirts are

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Speaker 9: triple digits.

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Speaker 4: So really, when you look underneath the.

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Speaker 9: Hood, there is a lot of great things to be

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Speaker 9: excited about. Hence why we raised expectations for the year.

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Speaker 2: And there's a lot to be said for the plans

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Speaker 2: that you've put in place. Now, you say that you

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Speaker 2: had nothing to do with Beyonce's naming of a song,

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Speaker 2: but actually Levi's did back in the day because they

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Speaker 2: were one of the only key brands that would affiliate

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Speaker 2: themselves with Destiny's child, and so ultimately she comes from

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Speaker 2: this place of authenticity.

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Speaker 4: You come from a place of leveraging it.

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Speaker 2: From an influencer perspective, we see how you read brand

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Speaker 2: the Instagram handle for the day to be a double eye.

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Speaker 2: What do you therefore do with the director consumer sort

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Speaker 2: of online element of this because I now buy my

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Speaker 2: Levi's via Amazon. How much have you been we're a

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Speaker 2: tech show. How much has technology been where it's.

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Speaker 4: At for you?

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Speaker 9: No, I think that's great. I mean testaments who are

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Speaker 9: really talented marketing and social media time team women. When

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Speaker 9: that happened, instantly they got after it and to your point,

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Speaker 9: leveraged that branding and social media. And we've had over

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Speaker 9: a billion impressions since they.

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Speaker 4: Got after that that day.

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Speaker 9: Just to give you a sense, but peeing direct to

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Speaker 9: consumer is really omnichannel. If you think about our e

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Speaker 9: commerce business that was up with double digits on top

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Speaker 9: of double digits, I mean that.

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Speaker 4: Business is on fire.

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Speaker 9: But it's all connected. And as we connect with our

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Speaker 9: consumer online and our stores, all ships raise and you

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Speaker 9: made a commona Amazon.

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Speaker 4: We want people to.

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Speaker 9: Buy Levi's wherever they want to. I mean, we love

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Speaker 9: it when they're engaging in the store because they can

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Speaker 9: see the full expression, right, they can see all.

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Speaker 4: The new fits.

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Speaker 9: Our talented stylists can help them find their next favorite

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Speaker 9: pair of jeans or the next great top that goes

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Speaker 9: with it. But you know, as many.

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Speaker 4: Stores you will.

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Speaker 9: We have three thousand stores now globally, a thousand which

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Speaker 9: are company owned and operated, and we're intending to build

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Speaker 9: a lot more one hundred Net News stores this year.

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Speaker 9: One of which, by the way, is that we're relocating

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Speaker 9: at the Champs des Age just in time for the Olympics.

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Speaker 9: It's going to be a beautiful store this summer before

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Speaker 9: the Olympics. And so we'll have those flagships stores, but

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Speaker 9: lots of store that are coming into neighborhoods. But we're

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Speaker 9: not going to be everywhere, so people can buy their

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Speaker 9: their Levi's wherever they like to shop.

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Speaker 3: Okay, so really quick, yes or no? Not answer if

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Speaker 3: you won't give me a number. Did Beyonce result in

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Speaker 3: an uptick of sales this week?

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Speaker 9: I'm not going to give you a number.

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Speaker 5: Kay, let me off.

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Speaker 9: But Lego I just said, being in the center of

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Speaker 9: culture is a privilege and we lean into it.

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Speaker 5: Let me ask you this really quickly.

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Speaker 3: You've talked about Paris, our city, San Francisco, is still

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Speaker 3: facing location issues where people are shutting stores. Would you

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Speaker 3: ever contemplate that in San Francisco?

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Speaker 9: We well, first of all, our headquarters in San Francisco.

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Speaker 4: We are here to stay.

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Speaker 9: We've renewed our lease in our headquarters. We are deeply

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Speaker 9: committed to San Francisco. We have a beautiful flagship store

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Speaker 9: on Market Street and they're doing great, So we are

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Speaker 9: we are committed to San Francisco and being part of

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Speaker 9: the solution to bring back the vibrancy to this amazing city.

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Speaker 2: It is so good to have you here talking with

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Speaker 2: San Francisco, but in the house in New York, both

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Speaker 2: of you flying back later today. It's a joy to

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Speaker 2: have leave CEO Michelle Gas at this moment where well,

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Speaker 2: Levi's on trend. Let's just talk about what else is

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Speaker 2: top of mind for many of you who are about

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Speaker 2: to fly out.

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Speaker 4: Some updates on the earthquake here in the East Coast.

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Speaker 2: JFK Airport posting on x that the airport does remain

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Speaker 2: open and operational again. Preliminary reports say that a four

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Speaker 2: point eight magnitude traumer rattle northern New Jersey, with Manhattan,

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Speaker 2: Long Island Hudson Valley also feeling the impact.

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Speaker 4: We're going to continue to monitor the headlines for you,

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Speaker 4: bring you the latest.

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Speaker 2: Most importantly for ED, because I know you're about to

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Speaker 2: board a plane.

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Speaker 3: I'm going to post on X. Responding to someone else

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Speaker 3: who had posted the Reuters headline, Musk says Reuters is

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Speaker 3: lying again in brackets. Reuters had reported that Tesla was

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Speaker 3: scrapping plans for a twenty five thousand dollars or low

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Speaker 3: cost EV in favor of favoring robotaxis Elon Musk taking

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Speaker 3: to his own social platform X to say that they

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Speaker 3: are lying.

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Speaker 2: We will keep you up to date with all the

445
00:21:11,040 --> 00:21:12,840
Speaker 2: goings on with Tesla. Now, let's get you all the

446
00:21:12,880 --> 00:21:15,560
Speaker 2: goings on. When it comes to artificial intelligence and out

447
00:21:15,560 --> 00:21:18,280
Speaker 2: in cloud, Flare is letting more developers bring their own

448
00:21:18,320 --> 00:21:21,240
Speaker 2: AI applications from hugging Face onto its platform now. The

449
00:21:21,280 --> 00:21:23,720
Speaker 2: company made the announcement this week, and it's also making

450
00:21:23,800 --> 00:21:29,400
Speaker 2: its fervolous GPU powered inference known as workers AI, generally available.

451
00:21:29,640 --> 00:21:31,919
Speaker 2: Let's bring in cloud Flair CEO Matthew Prints, So I'm

452
00:21:31,920 --> 00:21:34,560
Speaker 2: so police can always make these things far more simple

453
00:21:34,760 --> 00:21:36,520
Speaker 2: than some of the jug and that we have to say,

454
00:21:36,560 --> 00:21:39,200
Speaker 2: and I'm more interested. Ultimately, there has been this desire

455
00:21:39,240 --> 00:21:43,080
Speaker 2: by all companies to leverage the power of generative artificial intelligence,

456
00:21:43,160 --> 00:21:45,000
Speaker 2: and what we keep having to talk about is not

457
00:21:45,040 --> 00:21:47,440
Speaker 2: only how you integrate that within your workflow, but also

458
00:21:47,440 --> 00:21:48,399
Speaker 2: how expensive it can be.

459
00:21:48,840 --> 00:21:49,600
Speaker 4: You're trying to make.

460
00:21:49,480 --> 00:21:52,399
Speaker 2: It less expensive, make it more easy to adopt, to

461
00:21:52,400 --> 00:21:53,400
Speaker 2: build your own AI apps.

462
00:21:53,480 --> 00:21:55,320
Speaker 5: Right, That's exactly right.

463
00:21:55,359 --> 00:21:58,800
Speaker 10: There is not one AI solution for every company. We

464
00:21:58,840 --> 00:22:01,119
Speaker 10: don't think it's one size all, and so we're excited

465
00:22:01,119 --> 00:22:04,399
Speaker 10: to be partnering with hugging Face, which is effectively the

466
00:22:04,560 --> 00:22:08,719
Speaker 10: marketplace for the latest AI models, and we've made it

467
00:22:08,760 --> 00:22:12,000
Speaker 10: incredibly simple for a vast majority of the hugging Face

468
00:22:12,080 --> 00:22:15,120
Speaker 10: models that are on that marketplace. Anyone who can bring

469
00:22:15,240 --> 00:22:18,960
Speaker 10: anything to that marketplace, who with one click deploy those

470
00:22:19,000 --> 00:22:21,960
Speaker 10: models across the cloud Flair network and get the best

471
00:22:21,960 --> 00:22:24,400
Speaker 10: performance from those models, but also the best costs. How

472
00:22:24,400 --> 00:22:28,040
Speaker 10: can you actually get the value of AI without blowing.

473
00:22:27,720 --> 00:22:30,040
Speaker 4: Your budget your connectivity cloud company?

474
00:22:30,080 --> 00:22:32,320
Speaker 2: What's brilliant about The perspective you have is a birds

475
00:22:32,320 --> 00:22:35,120
Speaker 2: eye perspective. You can see where trends are actually meeting reality.

476
00:22:35,200 --> 00:22:37,760
Speaker 2: And there is so much hype that we talk about

477
00:22:37,800 --> 00:22:40,040
Speaker 2: on this program day in day out, Matthew, how real

478
00:22:40,200 --> 00:22:42,680
Speaker 2: is that? How ye how much you actually see companies

479
00:22:42,960 --> 00:22:45,159
Speaker 2: embrace jenerit to AI and make real differences.

480
00:22:46,000 --> 00:22:48,879
Speaker 10: I think that you know the generator AI story, you know,

481
00:22:48,960 --> 00:22:51,480
Speaker 10: pick your sports metaphor, but it is in its earliest

482
00:22:51,520 --> 00:22:55,320
Speaker 10: innings and there's something real here. But I think it's

483
00:22:55,359 --> 00:22:57,080
Speaker 10: going to take a while for us to take what

484
00:22:57,160 --> 00:23:00,000
Speaker 10: are really great demos and turn them into really great products.

485
00:23:00,320 --> 00:23:03,000
Speaker 10: So I think I think that the hype, the excitement

486
00:23:03,080 --> 00:23:05,439
Speaker 10: is justified. But I also think that we're going to

487
00:23:05,440 --> 00:23:07,560
Speaker 10: be in a period of time where companies are going

488
00:23:07,600 --> 00:23:09,280
Speaker 10: to have to experiment. They're going to have to try

489
00:23:09,320 --> 00:23:11,240
Speaker 10: different things, They're going to have to try different models,

490
00:23:11,240 --> 00:23:12,680
Speaker 10: they're going to have to try things that make sense

491
00:23:12,680 --> 00:23:15,040
Speaker 10: for them, and so it's critical to be able to

492
00:23:15,160 --> 00:23:18,199
Speaker 10: bring the right AI that your company needs and do

493
00:23:18,280 --> 00:23:20,239
Speaker 10: it in the most cost effective way. And that's what

494
00:23:20,280 --> 00:23:22,959
Speaker 10: we're here to deliver at cloud Flair with our workers

495
00:23:23,040 --> 00:23:23,879
Speaker 10: AI platform.

496
00:23:23,960 --> 00:23:27,360
Speaker 3: What we're talking about is an AI supply chain. Yesterday,

497
00:23:27,480 --> 00:23:30,680
Speaker 3: open Ais COO Brad Lightcap joined us on the show,

498
00:23:30,760 --> 00:23:33,120
Speaker 3: and this is what he said about that AI supply chain.

499
00:23:34,080 --> 00:23:36,359
Speaker 11: The supply chain will need to adapt to what we

500
00:23:36,400 --> 00:23:39,520
Speaker 11: think is going to be this highly inflected and nearly

501
00:23:39,560 --> 00:23:42,159
Speaker 11: exponential demand in the next ten years, and so we

502
00:23:42,160 --> 00:23:44,280
Speaker 11: spend a lot of time thinking about ways that we

503
00:23:44,320 --> 00:23:46,399
Speaker 11: can make sure that that demand is met. Part of

504
00:23:46,400 --> 00:23:48,240
Speaker 11: it is just being able to bring our models to bear,

505
00:23:48,280 --> 00:23:51,040
Speaker 11: but upstream of that is obviously making sure that the

506
00:23:51,080 --> 00:23:54,000
Speaker 11: actual underlying hardware and infrastructure exists to be able to

507
00:23:54,040 --> 00:23:56,719
Speaker 11: build the systems that we need to ultimately serve that demand.

508
00:23:57,960 --> 00:24:00,960
Speaker 3: Here's the thing, Matthew, are you convinced that your potential

509
00:24:00,960 --> 00:24:04,080
Speaker 3: customer base has even worked out in what form their

510
00:24:04,080 --> 00:24:07,160
Speaker 3: demand is what they actually plan to do with generatord AI.

511
00:24:08,400 --> 00:24:11,040
Speaker 10: I don't think that they've figured exactly out. I think

512
00:24:11,119 --> 00:24:15,640
Speaker 10: everybody in the business world today is at least experimenting

513
00:24:15,760 --> 00:24:18,280
Speaker 10: in this space. If you're not experimenting the space, you're

514
00:24:18,280 --> 00:24:21,240
Speaker 10: really risk running behind. But we want to make sure

515
00:24:21,240 --> 00:24:24,359
Speaker 10: that those experiments are as cost effective as possible. We

516
00:24:24,400 --> 00:24:26,320
Speaker 10: don't want people to just be lighting money on fire

517
00:24:26,600 --> 00:24:28,920
Speaker 10: when they're running AI experiments, and so we want to

518
00:24:28,920 --> 00:24:30,520
Speaker 10: make sure that they have the models that make the

519
00:24:30,560 --> 00:24:33,000
Speaker 10: most sense for their business, they're able to deploy them

520
00:24:33,000 --> 00:24:35,639
Speaker 10: in the way which is the most cost effective for

521
00:24:35,760 --> 00:24:39,040
Speaker 10: their business, and they get the local requirements that cloud

522
00:24:39,040 --> 00:24:42,600
Speaker 10: Flares network gives. We've been able to deploy our GPU

523
00:24:42,800 --> 00:24:45,639
Speaker 10: inference powered machines today in more than one hundred and

524
00:24:45,680 --> 00:24:49,840
Speaker 10: fifty cities worldwide, making us the most widely distributed AI

525
00:24:49,960 --> 00:24:53,200
Speaker 10: inference platform that's out there, and that's really powerful as

526
00:24:53,200 --> 00:24:56,080
Speaker 10: we serve our customers all around the world who want

527
00:24:56,080 --> 00:24:59,480
Speaker 10: to be able to do inference locally. Why hugging face

528
00:25:00,119 --> 00:25:02,639
Speaker 10: how you think this is the de facto model for

529
00:25:03,359 --> 00:25:07,359
Speaker 10: the de facto marketplace for where you distribute different AI models.

530
00:25:07,400 --> 00:25:11,080
Speaker 10: If you want to experiment with various AI models, they're

531
00:25:11,119 --> 00:25:14,280
Speaker 10: the place to go. It's sort of the gethub for

532
00:25:14,520 --> 00:25:18,440
Speaker 10: AI today. And so they've been that place where developers

533
00:25:18,440 --> 00:25:21,080
Speaker 10: are uploading those models, making it as easy as possible

534
00:25:21,440 --> 00:25:24,640
Speaker 10: for anybody to be able to distribute the incredible work

535
00:25:24,680 --> 00:25:27,800
Speaker 10: that they're building with these AI tools, and that partnered

536
00:25:27,800 --> 00:25:30,720
Speaker 10: with cloud Flare's network, that makes now deploying that in

537
00:25:31,320 --> 00:25:35,000
Speaker 10: those models and using them to solve real business challenges

538
00:25:35,200 --> 00:25:38,639
Speaker 10: anywhere in the world. That's an incredibly powerful combination and

539
00:25:38,680 --> 00:25:40,679
Speaker 10: that's something that we're excited to be doing with them,

540
00:25:40,720 --> 00:25:42,080
Speaker 10: and I think there's a lot more that we can

541
00:25:42,080 --> 00:25:42,560
Speaker 10: do together.

542
00:25:42,760 --> 00:25:45,439
Speaker 2: What's interesting about the time of AI is some of

543
00:25:45,480 --> 00:25:48,680
Speaker 2: the anxiety that is given to the workplace to whether

544
00:25:48,720 --> 00:25:51,120
Speaker 2: they'll lose their roles. Now, Matthew, I want to dovetail

545
00:25:51,200 --> 00:25:53,919
Speaker 2: into that something that you've experienced recently and actually tackled

546
00:25:53,920 --> 00:25:57,080
Speaker 2: head on in a very transparent manner. People having to

547
00:25:57,119 --> 00:25:59,320
Speaker 2: be laid off in the tech sector. Now, one of

548
00:25:59,359 --> 00:26:02,200
Speaker 2: your employees, as a twenty seven year old, was laid off.

549
00:26:02,040 --> 00:26:04,040
Speaker 4: And videoed how that occurred.

550
00:26:04,440 --> 00:26:06,760
Speaker 2: It went viral and there was pushback as to the

551
00:26:06,800 --> 00:26:08,399
Speaker 2: way in which people are being let go in the

552
00:26:08,440 --> 00:26:12,480
Speaker 2: tech sector. You actually took to Twitter now x saying

553
00:26:12,480 --> 00:26:14,840
Speaker 2: the video was painful for me to watch. Managers should

554
00:26:14,840 --> 00:26:17,480
Speaker 2: always be involved. HR should be involved, but it shouldn't

555
00:26:17,520 --> 00:26:20,679
Speaker 2: be outsourced to them. How have you seen response to

556
00:26:20,760 --> 00:26:23,120
Speaker 2: your own response? How are you thinking about your own

557
00:26:23,119 --> 00:26:25,280
Speaker 2: employee base that through more than three thousand that you

558
00:26:25,280 --> 00:26:26,160
Speaker 2: have with them at the moment.

559
00:26:26,800 --> 00:26:30,199
Speaker 10: Yeah, you know, I think across the entire industry. COVID

560
00:26:30,280 --> 00:26:33,160
Speaker 10: was this really strange period of time where I think,

561
00:26:33,280 --> 00:26:37,080
Speaker 10: for very reasonable and human reasons, a lot of companies

562
00:26:37,160 --> 00:26:40,639
Speaker 10: just stopped firing people even if they didn't perform at

563
00:26:40,640 --> 00:26:42,200
Speaker 10: their job. And so I don't want to talk about

564
00:26:42,280 --> 00:26:45,920
Speaker 10: the specifics of any individual employee. That's not fair to them,

565
00:26:45,960 --> 00:26:48,240
Speaker 10: but I will say that we think it's really important

566
00:26:48,520 --> 00:26:51,040
Speaker 10: that we have a culture of performance, that we have

567
00:26:51,080 --> 00:26:54,560
Speaker 10: a culture of where people who do well are rewarded

568
00:26:54,560 --> 00:26:57,480
Speaker 10: for that, and people who aren't we get off the team.

569
00:26:57,520 --> 00:26:59,119
Speaker 10: That doesn't mean that they're bad people. They might be

570
00:26:59,160 --> 00:27:01,399
Speaker 10: great employees or else, but they may just not be

571
00:27:01,440 --> 00:27:03,360
Speaker 10: the right fit for us. And what I'm encouraged by

572
00:27:03,880 --> 00:27:05,880
Speaker 10: is that, you know, last year, we had over one

573
00:27:05,920 --> 00:27:09,200
Speaker 10: point two million people apply to work for cloud Flip

574
00:27:09,240 --> 00:27:12,200
Speaker 10: for about a thousand jobs that we hired for. We're

575
00:27:12,320 --> 00:27:15,040
Speaker 10: way ahead of that trend through Q one of this

576
00:27:15,119 --> 00:27:18,080
Speaker 10: year with a record number of applicants. We've never seen

577
00:27:18,080 --> 00:27:21,080
Speaker 10: as many applicants, and so they're incredibly talented people who

578
00:27:21,119 --> 00:27:23,920
Speaker 10: want to come work hard and deliver on the mission

579
00:27:24,200 --> 00:27:27,399
Speaker 10: of helping build a better Internet, including delivering things like

580
00:27:27,440 --> 00:27:31,440
Speaker 10: our partnership with Hugging Face and the AI platform workers AI.

581
00:27:31,760 --> 00:27:35,720
Speaker 3: Okay, Cloud Fair CEO Matthew Prince. I appreciate the candor

582
00:27:35,760 --> 00:27:38,560
Speaker 3: on the question that Caroline asked because on social media that.

583
00:27:38,960 --> 00:27:40,040
Speaker 5: Was widely shared.

584
00:27:40,400 --> 00:27:43,720
Speaker 3: But also you're doing something that I think we learned

585
00:27:43,720 --> 00:27:46,439
Speaker 3: a lot about yesterday at Bloomberg Intelligence is AI Summit

586
00:27:46,880 --> 00:27:49,320
Speaker 3: partnerships to add a new layer of AI access on

587
00:27:49,359 --> 00:27:50,600
Speaker 3: top of cloud infrastructure.

588
00:27:50,640 --> 00:27:53,560
Speaker 5: That seems to be thing. Matthew Frintz, thank you so much. Okay.

589
00:27:54,080 --> 00:27:56,919
Speaker 3: US and EU officials were in Louven, Belgium for the

590
00:27:56,960 --> 00:28:01,760
Speaker 3: final Trade and Technology Council ministerial meet before elections on

591
00:28:01,840 --> 00:28:05,040
Speaker 3: both sides of the Atlantic. The Council, which is responsible

592
00:28:05,080 --> 00:28:09,840
Speaker 3: for coordinating US and European tech regulation efforts, is working

593
00:28:09,880 --> 00:28:12,720
Speaker 3: to set AI standards and to figure out how the

594
00:28:12,760 --> 00:28:17,200
Speaker 3: two blocks can collaborate. Here's European Commission Executive Vice President

595
00:28:17,400 --> 00:28:19,680
Speaker 3: Margaret ta BESTDAYA.

596
00:28:19,840 --> 00:28:22,520
Speaker 12: When it comes to AI, we have had an agreed

597
00:28:22,560 --> 00:28:25,560
Speaker 12: approach from the very first day, and I think that

598
00:28:25,600 --> 00:28:29,199
Speaker 12: the likelihood that that would produce artificial intelligence that you

599
00:28:29,240 --> 00:28:34,880
Speaker 12: can trust is so much bigger because artificial intelligence hold

600
00:28:35,160 --> 00:28:40,160
Speaker 12: immense promise if the negative sides can be controlled.

601
00:28:41,480 --> 00:28:44,520
Speaker 2: Yes, and Meanwhile, the two sides also announced a new

602
00:28:44,600 --> 00:28:48,640
Speaker 2: dialogue between the USAI Safety Institute and the EU's AI

603
00:28:48,720 --> 00:28:52,200
Speaker 2: Office that will explore tools and methods for evaluating technologies.

604
00:28:52,320 --> 00:28:54,560
Speaker 2: Now here's the US Secretary of Commerce, Gina Romando.

605
00:28:55,680 --> 00:29:00,120
Speaker 13: AI is changing the game again for everything and and

606
00:29:00,640 --> 00:29:05,920
Speaker 13: AI collaboration between Theater Office and our Safety Institute is strong,

607
00:29:06,000 --> 00:29:08,720
Speaker 13: will get stronger, all led by the TTC.

608
00:29:16,480 --> 00:29:19,720
Speaker 3: There gonna be some more changes at Twilio. Spurred by

609
00:29:19,760 --> 00:29:24,000
Speaker 3: pressure from activist investors, a software company is asking shareholders

610
00:29:24,120 --> 00:29:28,040
Speaker 3: to change its board director terms to one year, down

611
00:29:28,320 --> 00:29:30,920
Speaker 3: from three, beginning in twenty twenty five. The company also

612
00:29:30,960 --> 00:29:35,000
Speaker 3: announced that Byron Dieter, directors since twenty ten, will not

613
00:29:35,160 --> 00:29:38,480
Speaker 3: seek reelection at its upcoming annual investor meeting, and the

614
00:29:38,560 --> 00:29:41,520
Speaker 3: board is going to be reduced to nine members from

615
00:29:41,680 --> 00:29:44,760
Speaker 3: ten upon the end of his term. There's one man

616
00:29:44,800 --> 00:29:48,280
Speaker 3: to talk to Bloomberg's Brody Ford. I actually kind of

617
00:29:48,320 --> 00:29:52,360
Speaker 3: don't get this. Is this Twilio playing defense because there's

618
00:29:52,400 --> 00:29:54,360
Speaker 3: a lingering threat, Like what's going on?

619
00:29:55,400 --> 00:29:58,480
Speaker 14: Yeah, I mean what this is is Twilios seeking to

620
00:29:58,600 --> 00:30:01,920
Speaker 14: avoid what happened with this, you know, a big public

621
00:30:02,520 --> 00:30:06,160
Speaker 14: dispute with activists investors where they're airing dirty laundry and

622
00:30:06,200 --> 00:30:09,160
Speaker 14: you have to go on Twitter and take out ads

623
00:30:09,200 --> 00:30:10,960
Speaker 14: to say, hey, vote for us, all vote for the

624
00:30:11,000 --> 00:30:14,600
Speaker 14: activist investors. What we're seeing here is a classic tale

625
00:30:14,640 --> 00:30:18,040
Speaker 14: where a high growth software company hit a wall, right,

626
00:30:18,200 --> 00:30:21,320
Speaker 14: They had their growth plummet all of a sudden, they

627
00:30:21,320 --> 00:30:24,720
Speaker 14: had to do layoffs. Their future seemed uncertain. What happens

628
00:30:24,840 --> 00:30:28,080
Speaker 14: activists investors show up, right. They have been agitating for

629
00:30:28,200 --> 00:30:30,280
Speaker 14: changes for a couple of months now, and we've seen

630
00:30:30,320 --> 00:30:32,880
Speaker 14: Twilio make a number of changes over the last couple

631
00:30:32,880 --> 00:30:36,400
Speaker 14: of months to keep these activists investors happy and to

632
00:30:36,520 --> 00:30:40,040
Speaker 14: prevent getting themselves into some kind of public proxy battle,

633
00:30:40,080 --> 00:30:42,200
Speaker 14: which very few people are willing to take on.

634
00:30:43,320 --> 00:30:44,120
Speaker 4: Proxy battles.

635
00:30:44,120 --> 00:30:45,640
Speaker 2: Is where it's at in the news flow right now

636
00:30:45,640 --> 00:30:47,960
Speaker 2: at the moment, Brody and I'm interested like this, of course,

637
00:30:48,040 --> 00:30:51,360
Speaker 2: comes after Jeff Lawson himself CEO, had.

638
00:30:51,240 --> 00:30:53,040
Speaker 4: To stand down amid all of this.

639
00:30:53,960 --> 00:30:57,960
Speaker 2: Is there now a viewpoint that ultimately the fundamentals of

640
00:30:58,000 --> 00:30:59,920
Speaker 2: the business will be changing and oft and swiftly enough.

641
00:31:01,240 --> 00:31:04,400
Speaker 14: Well, that's a great question, because we've seen some changes here.

642
00:31:04,440 --> 00:31:07,800
Speaker 14: As you mentioned, the well known founder CEO step down.

643
00:31:07,840 --> 00:31:10,600
Speaker 14: They've changed some of the board terms. And when board

644
00:31:10,680 --> 00:31:12,840
Speaker 14: terms are changed in this way where you can vote

645
00:31:12,880 --> 00:31:16,480
Speaker 14: somebody out each given year, what that means is, hey,

646
00:31:16,680 --> 00:31:20,000
Speaker 14: improve your business fundamentals, or we're coming back next year

647
00:31:20,040 --> 00:31:23,040
Speaker 14: and we can vote your slate of candidates out very easily.

648
00:31:23,600 --> 00:31:23,800
Speaker 11: Right.

649
00:31:23,920 --> 00:31:26,200
Speaker 14: We saw a statement yesterday from one of the activist

650
00:31:26,320 --> 00:31:29,440
Speaker 14: investors saying we will continue to put pressure on this business.

651
00:31:29,760 --> 00:31:32,680
Speaker 14: And keep in mind, these activists were hoping that Blia

652
00:31:32,760 --> 00:31:35,800
Speaker 14: would sell itself, they were hoping that it would divest things.

653
00:31:35,880 --> 00:31:38,160
Speaker 14: I think they were hoping for more draftic changes than

654
00:31:38,200 --> 00:31:40,720
Speaker 14: we saw. So you know the odds that we see

655
00:31:40,720 --> 00:31:44,400
Speaker 14: some red headlines coming out about Twilio further, very.

656
00:31:44,240 --> 00:31:47,720
Speaker 2: Possible, pretty forward, Always a joy, Thank you very much.

657
00:31:47,760 --> 00:31:51,200
Speaker 4: Indeed. Meanwhile, Wow, thick and fast from the headline front.

658
00:31:51,120 --> 00:31:52,400
Speaker 5: D Yeah, incredible, Friday.

659
00:31:52,520 --> 00:31:54,840
Speaker 3: That does it for this addition of room bow technology,

660
00:31:54,840 --> 00:31:56,280
Speaker 3: You're going to have to recap the whole episode to

661
00:31:56,320 --> 00:31:58,080
Speaker 3: understand what happened on the pod.

662
00:31:58,520 --> 00:32:01,080
Speaker 5: What a week here with you in Ny. This is

663
00:32:01,080 --> 00:32:05,160
Speaker 5: Bloomberg