Speaker 1: This is new meg technology. I'm Caroline High.
Speaker 2: Let's go straight to some of the key takeaways from
Speaker 2: those very hearings Promotioninali Basek has been standing by also
Speaker 2: on Capitol Hill and Jannali the takeaways you think in
Speaker 2: terms of actually approaching Vasel three endgame.
Speaker 3: Listen, On one hand, the lawmakers, some of them have
Speaker 3: heard their cry, they heard the bank CEO's case, and
Speaker 3: they believed it in some cases. But you know, they
Speaker 3: would have to go to the Federal Reserve and the
Speaker 3: FDIC and other regulators and make it sure that those
Speaker 3: regulators waited to implement these rules and really push this
Speaker 3: off now. On the other hand, one senator I spoke
Speaker 3: to of particular interest was JD. Vance, the Ohio Republican
Speaker 3: who you may remember was a venture capitalist himself. I
Speaker 3: asked him whether the private credit industry, the private funds industry,
Speaker 3: would also face their own regulation, and he said that
Speaker 3: is very highly likely. He could see things going that way.
Speaker 3: So this push poll between the banking industry and their
Speaker 3: biggest clients are going to be very highly watched because
Speaker 3: of course we know that. Of course, the meeting's ending
Speaker 3: right now, and you're seeing the banks in just a
Speaker 3: few minutes here are all about to walk behind me
Speaker 3: as well, probably Caroline, But you know, you do see
Speaker 3: this push pull between the biggest banks and their biggest
Speaker 3: clients at this point in time, given the tension behind
Speaker 3: the capital rules.
Speaker 1: We're a tech show.
Speaker 2: Let's talk about AI, the questioning that, crypto, the questioning that.
Speaker 2: What did you take away from some of the thoughts
Speaker 2: from Elizabeth Warren Senator Warren in particular.
Speaker 3: Listen the feelings that have been left over from the
Speaker 3: crypto crash and how many millions of Americans have lost
Speaker 3: money and the finance settlement that we've seen so recently.
Speaker 3: Elizabeth Warren agreeing with big banks and their biggest CEOs
Speaker 3: never happens this way. But yet you have them agreeing
Speaker 3: that the crypto company should be facing the anti Monday
Speaker 3: laundering rules that these banks have had to face for decades,
Speaker 3: and so that was someplace that they faced agreement. Elizabeth
Speaker 3: Warren has turned her attention from the bank CEOs over
Speaker 3: to the crypto industry. That has been made pretty clear
Speaker 3: today and the rest of the Senators are very, very worried,
Speaker 3: not just about crypto but about AI and whether you
Speaker 3: are in an area where you're calling a bank and
Speaker 3: you don't know whether you're speaking to our official intelligence
Speaker 3: or a person with your personal financial information.
Speaker 2: Sanalie, we're going to let you start running after some
Speaker 2: of those bank CEOs and tis some of those senators
Speaker 2: who've just seen more behind you. We thank you so much,
Speaker 2: Nalie Bassek. Meanwhile, and let's talk the democratization of finance
Speaker 2: retail access to certain assets in particular, Now retail investors
Speaker 2: on publics Brokeridge will be able to buy slices of
Speaker 2: corporate bonds just like they do with stocks, bringing a
Speaker 2: wider buyabase to what is of course a multi trillion
Speaker 2: dollar fixed income market joining us now Janick Malling his
Speaker 2: public co CEO and co founder, and ultimately it is
Speaker 2: a more in liquid asset class and equities. But you're
Speaker 2: wanting to try and bring some sort of liquidity ability
Speaker 2: to buy directly on your platform, why yeah.
Speaker 4: I mean with this unprecedented rise we're seen in rates,
Speaker 4: the retail community has grown a large you have a
Speaker 4: tite for yield, and with that they've rediscovered the whole
Speaker 4: world of bonds. We've we've seen that firsthand of public
Speaker 4: back in March of this year, we announced the ability
Speaker 4: to easily buy six months T bills and since went
Speaker 4: on to become them bought asset on the platform year
Speaker 4: to date. Now, I think when you look at the
Speaker 4: experience around buying corporate bonds, the full universe of treasuries
Speaker 4: and municipals, it's really still quite antiquated, I would say,
Speaker 4: I mean, the last time race for this high was
Speaker 4: literally before the iPhone, and so the sort of old
Speaker 4: it's a little clunky, they're high minimums, they're difficult to use.
Speaker 4: And what we're announcing today is that we're sort of
Speaker 4: building a modern alternative for fixed income to really bring
Speaker 4: the experience of finding, evaluating, and investing in bonds into
Speaker 4: the twenty first center.
Speaker 2: Tell us what technology is necessary to bring it into
Speaker 2: the twenty first century.
Speaker 1: I mean, the reason you're able to bring this.
Speaker 2: Is because of your own sort of way in which
Speaker 2: your platform is using apex for example. What are some
Speaker 2: of the difficulties of providing such optionality to your users.
Speaker 1: It's interesting.
Speaker 4: So back in twenty nineteen, we I believe, were the
Speaker 4: first to launch fractional stocks, like the ability to actually
Speaker 4: buy slices of shares, and it really works in a
Speaker 4: very similar way here. And we also Apix is also
Speaker 4: our partner on the stocks business, and so after we
Speaker 4: saw the huge takeup of our T build product, you know,
Speaker 4: we reach out to them and we partnered on building
Speaker 4: this kind of solution. Whereas obviously we're the prober dealer,
Speaker 4: they're sort of more infrastructure and pipes and regulative reporting
Speaker 4: and so forth. But it really works in a very
Speaker 4: similar way in that the liquidity around buying, even like
Speaker 4: these fractions, if it comes out of inventory, is actually
Speaker 4: much better then if you have to go to the
Speaker 4: market every time. And obviously the bond market is a
Speaker 4: little bit different than the equities markets in terms of
Speaker 4: how the liquidity deband works, and so one could argue
Speaker 4: that it's potentially even more interesting for the bond market
Speaker 4: than it might be for the equities market.
Speaker 2: We'll come back tell us whether or not this outstrips
Speaker 2: the demand that you've seen for the T bills. Thank
Speaker 2: you very much and for your patients throughout a plus
Speaker 2: of banking course. Hearing that we were sat through yannik Maning,
Speaker 2: their public co CEO and co founder on that product launch.
Speaker 1: I mean, while.
Speaker 2: Sticking with the theme of maybe more the artificial intelligence
Speaker 2: questioning that was going on in the banking hearing is
Speaker 2: dominating the tech news flow today.
Speaker 1: MD in particular, they're holding that.
Speaker 2: Advancing AI event today where it will flesh out its
Speaker 2: strategy for its high power AI accelerator.
Speaker 1: It's the three hundred x ED.
Speaker 2: You're standing by on the ground ahead of the event,
Speaker 2: ahead of an interview with Anissa Su, the CEO of AMD,
Speaker 2: and well, what's the anticipation. What are we really going
Speaker 2: to be hearing from her about the excitement for the product.
Speaker 5: Yeah, Look, it's really about the battle ground for the
Speaker 5: market for AI accelerators, those high power GPUs that go
Speaker 5: into data centers and are right now training large language
Speaker 5: models or foundation models. Later when those models are developed,
Speaker 5: powering the inference side of generative AI tools. That market
Speaker 5: has an incumbent in video in the H one hundred
Speaker 5: and this is really a side by psyche comparison in
Speaker 5: videos H one hundred versus them three hundred x. The
Speaker 5: technological advantage that three hundred x has is that it
Speaker 5: has HBM three, the latest generation of high bandwidth memory.
Speaker 5: That is a technology that's not going into in video
Speaker 5: products until the second quarter when they come to market
Speaker 5: with eight two hundred, but they still have that market
Speaker 5: incumbent title. There's a lot of optimism and hype around
Speaker 5: this because it's a big potential addressable market. The analysts
Speaker 5: think that AMD can take some share in and.
Speaker 2: Analy it's not trapping themselves for any updates on the financials,
Speaker 2: but certainly about the specifics of this particular product launch.
Speaker 2: We cannot waited for your interview a little bit later.
Speaker 2: Make sure you tune in live to ed sit down
Speaker 2: with the amdco Lisa Sue Banks ed Sweet you later. Meanwhile,
Speaker 2: look Apple sinking to reverse a decline in Mac and
Speaker 2: iPad sales, preparing several new models and upgrades early next year.
Speaker 1: Of course he's behind the scoop.
Speaker 2: Mark German joining us now to discuss and bring us
Speaker 2: the latest what they're planning new iPad Air, iPad Pro,
Speaker 2: MacBook Air models as well.
Speaker 6: Yeah, Carolin, thank you so much for having me. Yes,
Speaker 6: we have a bunch of new iPads in Max coming
Speaker 6: out in the coming months. These releases are likely to
Speaker 6: have to happen in the March timeframe, so in the spring,
Speaker 6: just a few months from now, a little early on
Speaker 6: the Apple typical product calendar. So there's a few things
Speaker 6: happening here on the iPad side. There's going to be
Speaker 6: a new strategy bigger displays at lower prices, So there's
Speaker 6: going to be two new iPad Air models. These are
Speaker 6: going to have the M two chip that came to
Speaker 6: the iPad Pro at the end of last year, and
Speaker 6: you're going to get a twelve point nine inch screen
Speaker 6: for the first time on a cheaper iPad, so potentially
Speaker 6: spending maybe five to seven hundred dollars less to get
Speaker 6: that almost thirteen inch display a laptop size screen on
Speaker 6: an iPad. And then at the high end new iPad
Speaker 6: pros with O LED screens, new designs, and new external
Speaker 6: keyboards that make the iPad pros function more like laptops.
Speaker 6: And then speaking of laptops, new MacBook Airs coming in
Speaker 6: the spring, new thirteen inch and fifteen inch models. So
Speaker 6: the MacBook Air updated for the first time on the
Speaker 6: thirteen size after year and a half, the fifteen inch
Speaker 6: model being updated about after nine months, and the big
Speaker 6: change there moving from the M two chip to the
Speaker 6: M three chip that came to the MacBook Pro and
Speaker 6: the iMac in October.
Speaker 2: Chips the driving fulls of conversation so far today, Mark,
Speaker 2: I'm interested though regulation is going to be fun incentive
Speaker 2: or for us throughout the show, I'm interested as to.
Speaker 1: What's happening over in the EU.
Speaker 2: Apple, it seems, is managing perhaps to get a carve
Speaker 2: out for its I messaging.
Speaker 6: Yeah, what we reported earlier this morning our colleagues in
Speaker 6: Europe is that there is a carve out in the
Speaker 6: Digital Markets Act where Apple is not going to have
Speaker 6: to make I Message interoperable as part of these new regulations.
Speaker 6: This is an overhaul to how iPhones and iPads will
Speaker 6: function in Europe. But this is super interesting because just
Speaker 6: a couple of weeks ago, Apple announced it's going to
Speaker 6: support OURCS or rich Communications services. This is a Google
Speaker 6: sponsored or something led by Google, prode by Google that
Speaker 6: allows I message to text message, or allows different phones
Speaker 6: iPhones and Android phones to text message on a single
Speaker 6: protocol or network. Apple's adding that essentially making I Message interoperable.
Speaker 6: And it really shows that Apple made the right move here.
Speaker 6: They got ahead of the Digital Markets Act and now
Speaker 6: Europe is letting them off easy on messaging.
Speaker 2: I believe versus a green Markama, thanks so much when
Speaker 2: it comes to all things Apple. Meanwhile, let's talk a
Speaker 2: little bit more about regulation in the European Union more broadly,
Speaker 2: particularly when it comes to AI. Remember, they are racing
Speaker 2: as of today to reach a deal on the world's
Speaker 2: first major set of AI rules. Representaors meeting to try
Speaker 2: and hammer out what's the EU's AI Act. It's actually
Speaker 2: the first was proposed all the way back in twenty
Speaker 2: twenty one, but boy has the technology changed beneath their feet,
Speaker 2: Blue Moost Jillian Deutsche joining us now to really try
Speaker 2: and see whether or not we'll get any sort of
Speaker 2: agreement as of today, because past it it starts to
Speaker 2: get difficult, right.
Speaker 7: Absolutely, you know, this is a really big night and
Speaker 7: possibly very very late night ear and Brussels as we
Speaker 7: see negotiators come together and try to finalize this AI Act, which,
Speaker 7: as you said, Caroline, has been in the work since
Speaker 7: twenty twenty one. While this technology has been moving so fast,
Speaker 7: regulators are trying to keep up, and then to be
Speaker 7: around Generator BI in particular, has really thrown the conversation
Speaker 7: into disarray. Today was supposed to be the day that
Speaker 7: they walk out and easily have some kind of deal,
Speaker 7: but we're I'm actually sure if they will come out
Speaker 7: with one. We have lots of EU countries hereorried about
Speaker 7: uber regulation passibly killing off doabstic competitors to OBANII. I
Speaker 7: mean you also want makers who say this technology is
Speaker 7: just too powerful, too risky to not put clear guardrails around.
Speaker 1: We're going to be.
Speaker 2: Having lots of conversation about the similar sort of discussion
Speaker 2: happening over in Capitol Hill as well. Really the regulation
Speaker 2: front and center. Gillian Deutsch, thank you so much. We'll
Speaker 2: see whether we get a deal later. Let's talk about
Speaker 2: bench capital right now. Shine a spotlight on it as
Speaker 2: we do every day. And America's Frontier Fund or AFF,
Speaker 2: has start to make some of its first startup investments
Speaker 2: through a new VC firm. AFF, which is backed by
Speaker 2: like Sir Peter Teel, Eric Schmidt and others, is a
Speaker 2: non profit investment platform focused on tech breakthroughs. It deems
Speaker 2: to be in the national interest now. The nonprofit sponsors
Speaker 2: VC firms is part of a broader mission to boost
Speaker 2: tech innovation in the United States. One of those is
Speaker 2: road Run Adventure Studios. Now, road Runner co founder president
Speaker 2: Adam Hammer joins us now for more on how you
Speaker 2: are looking to allocate money to disruptive research. You're bringing
Speaker 2: on board, well, your first three companies to join the
Speaker 2: studio to not only get money, which I think you've
Speaker 2: raised not only from New Mexico in particular, but you're
Speaker 2: also looking at basically handholding them through their growth.
Speaker 8: Right, that's right, Caroline. So we're on a mission to
Speaker 8: partner with brilliant scientists, innovators and entrepreneurs to build new
Speaker 8: disruptive companies in America for America. And to your point,
Speaker 8: what's unique about our model is we're not only providing capital,
Speaker 8: we're providing lab space, we're providing product management, talent resources,
Speaker 8: and we're going to make sure that every company we
Speaker 8: build is mapped to a first customer.
Speaker 2: Let's talk about those first customers. Let's think about the
Speaker 2: commercialization of these three companies. Where you've got hydrosonics, you've
Speaker 2: got inadas so, you've got clean tech, you've got biotech,
Speaker 2: you've also got manufacturing with fab Ai. How soon do
Speaker 2: you think these companies will find customer product market fit.
Speaker 8: So we're on a pathway to make sure that each
Speaker 8: of these companies have a first customer within the next year.
Speaker 8: We've built a proprietary method of commercialization here at Roadrunner,
Speaker 8: we have key partners, both in government and in the
Speaker 8: private sector that we work closely with to ask what
Speaker 8: are your hardest problems and how can we be building
Speaker 8: products and companies to solve those.
Speaker 2: What's so interesting is not only your model, but where
Speaker 2: you're based and how you're raising the money. You want
Speaker 2: this studio concept to go outside of New Mexico. Right
Speaker 2: where else would you look? Who have you been having
Speaker 2: discussions with?
Speaker 8: That's right, Karen So, Yes, this movement starts in New Mexico,
Speaker 8: but it certainly won't end here. We're really privileged to
Speaker 8: be part of this long tapestry of innovation and history
Speaker 8: here in New Mexico and building upon it. But we're
Speaker 8: headed national next, so looking at places like New Jersey,
Speaker 8: in North Dakota and Florida, and Tulsa and Texas and
Speaker 8: taking this to different regions and in other areas where
Speaker 8: we feel like there's so many untapped resources that we
Speaker 8: can come in build companies for those local communities and
Speaker 8: make sure that they have that disruptive potential that's important
Speaker 8: for American competitiveness.
Speaker 2: What's interesting is course we named some of the big
Speaker 2: tech players who are behind the nonprofit bit side of
Speaker 2: affrom Thing and Marrig Schmidt, Peter Teel. Of course, this
Speaker 2: is a for profit element. Have you spoken to them
Speaker 2: about some of these allocations, about the companies that you're
Speaker 2: going to be backing.
Speaker 8: Well, we certainly have a lot of supporters Eric of
Speaker 8: course as a friend and mentor whom I used to
Speaker 8: work for. But what we try to do is make
Speaker 8: sure that we have partners both in the venture capital
Speaker 8: community again also in government and in private sector. A
Speaker 8: lot of the technology we're building is critical tech. It's
Speaker 8: again really important for the United States to lead on these,
Speaker 8: both for national security and for American competitiveness. We're making
Speaker 8: sure to share those deals, share what we're building, shop
Speaker 8: at ahead of time with venture capital partners that are
Speaker 8: friends of ours, and make sure that each of these
Speaker 8: companies and founders are lined up for success.
Speaker 2: You, of course previously managing director head of Strategy over
Speaker 2: at Schmidt Futures. You've brought on others that have worked
Speaker 2: at Schmidt Futures, those that have really deep tech knowledge
Speaker 2: in particular places like Amazon and other key companies. Who
Speaker 2: else are you bringing on? What expertise you look at
Speaker 2: at for road Run Adventure Studios.
Speaker 8: It's a great question. We're privileged to have a great
Speaker 8: season team here, particularly folks that have commercialization experience, folks
Speaker 8: that know how to translate deep tech to actually building products,
Speaker 8: which is hard work. So a lot of product management experience,
Speaker 8: a lot of commercialization experience. What talent is core to
Speaker 8: building companies. Plenty of brilliant ideas die on the vine
Speaker 8: if they don't have a champion, if they don't have
Speaker 8: a CEO behind them. So we're building a talent infrastructure
Speaker 8: and have a head of talent that's in studio. What
Speaker 8: we'll be building with is continuing to bring in product managers,
Speaker 8: continue to bring in scientists, and then folks that can
Speaker 8: help us really do the business development around deep tech.
Speaker 2: Road Run Adventure Studios co founder and president Adam Hammer.
Speaker 2: Great to have some thoughts with you today, Thank you
Speaker 2: very much. Indeed, meanwhile, well let's go back to the
Speaker 2: world of AI, because Google is opening access to Gemini
Speaker 2: and what is called its largest and most capable AI model.
Speaker 1: This is as a search shod and because really.
Speaker 2: Trying to catch up here to companies like AI with
Speaker 2: GPT four.
Speaker 1: Now this foot model.
Speaker 2: Has three versions, including one that can run directly on smartphones,
Speaker 2: for example, not just in the data centers. Meanwhile, the
Speaker 2: application of AI is something that tech leaders, civil society,
Speaker 2: advocates of academics are all trying to get their hands
Speaker 2: around in terms of how you regulate it. Actually, on
Speaker 2: Capital this Hill this week, they're all there and they're
Speaker 2: discussing AI's implications, for example, for national security and the
Speaker 2: potential threats posed by this rapidly advancing tools landing. AI
Speaker 2: founder CEO Andrew Young is joining us now, you, of
Speaker 2: course an academic yourself called colsera co founder as well.
Speaker 1: What did you make of the.
Speaker 2: Statements being made up on Capitol Hill with other leaders
Speaker 2: of anthropic for example, and where did it land for those.
Speaker 1: That are trying to regulate it? What was your message today?
Speaker 9: Yea, Damiti just ended twenty minutes ago. I'm actually speaking
Speaker 9: to you from the Senate Russell Halls where we're just
Speaker 9: debating this vigorously for two hours. I feel like there's
Speaker 9: a wide range of opinions, and I think that types
Speaker 9: about AI doomsday scenario are overblown. When I look at
Speaker 9: the common arguments or why AI could lead us to do,
Speaker 9: it comes down to maybe three things one is it
Speaker 9: could happen. We're not sure how, but it could happen,
Speaker 9: and you can't disprove a negative. You can't prove a negative. Second,
Speaker 9: a is a Peth authority. Some other people think it
Speaker 9: could happen, so let's worry about that. And then lastly,
Speaker 9: I think AI is a fantastic productivity too. And so
Speaker 9: there's some arguments that if someone wants to do something
Speaker 9: malicious that a productivity to could help them, But I
Speaker 9: feel it was still falling short in terms of quantifying
Speaker 9: what really are the realisticrets and just because of productivity
Speaker 9: to may help someone do something bad. You know, how
Speaker 9: should we think about regulating productivity tools?
Speaker 2: So you're almost trying to take out, draw out rationalize
Speaker 2: some of the so called hype around the doom of AI.
Speaker 2: But at the same time, how do you practically think
Speaker 2: the US And indeed, as we wait for the E
Speaker 2: potentially to have some sort of initial on the EUAI Act,
Speaker 2: how will regulation take form? Do they have to regulate
Speaker 2: the foundational models or should they only regulate the application
Speaker 2: of AI?
Speaker 9: I think that was a great insight. One thing that's
Speaker 9: important to note about AI is a general purpose technology,
Speaker 9: meaning it's useful for so many different things, from copy
Speaker 9: editing and chatting with people to answering questions the customer support,
Speaker 9: and so regulating the core technology is very difficult to me.
Speaker 9: Regulating the core technology makes as much sense as regulating
Speaker 9: high powered electric motors, which could be used to all
Speaker 9: sorts of things. But once you take that electric motor
Speaker 9: and turn it into a electric vehicle or blender, you
Speaker 9: can think about whether the rest of the applications the
Speaker 9: car or the blender. When you take this AI technology
Speaker 9: and you build it into medical device, let's make sure
Speaker 9: the medical device is safe. You take AI and put
Speaker 9: in the self driving car, let's make sure the self
Speaker 9: driving cars safe. But I worry that we put owner's
Speaker 9: regulation on the technology rather than the regulation, then we're
Speaker 9: slowing down the hundreds of thousand and maybe even more
Speaker 9: beneficial applications that we could and should be using AI for.
Speaker 2: I mean, we turn to you because of the expertise
Speaker 2: that you not only have at Stanford University as an academic,
Speaker 2: but also as an innovator in and of yourself and
Speaker 2: funding innovations with landing AI for example, I'm interested in
Speaker 2: whether you think innovation thus far is being stifled by
Speaker 2: pre enting regulation that isn't actually there because companies are
Speaker 2: having to get on advice, they are turning to consultants,
Speaker 2: they are trying to sort of ensure that they're building
Speaker 2: in the right way ahead of any real rules coming
Speaker 2: into place.
Speaker 9: Yeah, the AI regulation space has been remarkable, with a
Speaker 9: lot of fears about long term harms, even extinction risk.
Speaker 9: And today one of the things that was discussed was
Speaker 9: to ask not what do you think are the risk
Speaker 9: of something leading to do, but whether your hopes for AI,
Speaker 9: what do you think are the adser that AI will
Speaker 9: need to much better future for everyone? And a lot
Speaker 9: of us, including me gave Esmans, I think AI has
Speaker 9: over seventy percent churns of building, letting us build a
Speaker 9: much better world, and then regulation to hold us back
Speaker 9: from that would be a problem. One of the things
Speaker 9: that was discussed a lot was the concern of regulatory capture.
Speaker 9: And I think there's actually one way to regulate to
Speaker 9: avoid favoring bag tech companies while cyping innovation from startups,
Speaker 9: and that is to take a tiered risks approach to
Speaker 9: AI would regulate the more risky things. And I think
Speaker 9: that if you're a social media company with one hundred
Speaker 9: million users. Well, that has higher disinformation risk than a
Speaker 9: small message wark with just one hundred users. So let's
Speaker 9: regulate companies with a bigger reach more that allows us
Speaker 9: to protect citizens while also avoiding regulatory capture.
Speaker 2: Andrew, who's just come out of that meeting. We thank
Speaker 2: you so much for spending some more time with us.
Speaker 2: Of course, your landing AI founder, your co founder car Sarah,
Speaker 2: and of course you're up on Capitol Hill at that
Speaker 2: AI forum, Andrew, and we thank you meanwhile, Well, that
Speaker 2: does it for a rather shortened edition of bloombag Technology.
Speaker 2: We race through our whole most of types of conversations
Speaker 2: around AI. Of course, do not miss that all important
Speaker 2: interview that Ed has with Lisa Su of a m
Speaker 2: D a little bit later, and.
Speaker 1: Don't miss our podcast.
Speaker 2: You can get it of course on Apple, Spotify and
Speaker 2: iHeart this is Bloomberg Technology.