WEBVTT - Salesforce Plunges on Outlook, C3.ai CEO Joins on Earnings, Inside Elon Musk's Universe 0:00:01.360 --> 0:00:06.640 From Mahart. We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.000 --> 0:00:11.040 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.840 --> 0:00:27.200 I'm Caroline Heyde of Blomberg's World headquarters in New York 0:00:27.200 --> 0:00:28.440 and Ludlow is on assignment. 0:00:28.760 --> 0:00:30.800 This is Bloombog Technology coming up. 0:00:30.880 --> 0:00:34.880 Salesforce plunges as sales growth for the current quarter stalls 0:00:34.880 --> 0:00:38.400 to its slowest in history. Details to come. Plus, we 0:00:38.400 --> 0:00:40.520 continue the earning's coverage and sit down with the CEO 0:00:40.560 --> 0:00:43.760 of C three AI as a company reports well, some 0:00:43.800 --> 0:00:46.640 pretty decent results, and we take a deep dive into 0:00:46.680 --> 0:00:50.080 Elon Musk's universe in today's at Bloombog Big take all 0:00:50.080 --> 0:00:52.680 that and so much more coming up. First, that's checking 0:00:52.720 --> 0:00:55.200 on these markets, and we are dragged lower by the 0:00:55.240 --> 0:00:59.240 absolute plummeting in of course salesforce, which is having an 0:00:59.280 --> 0:01:02.240 impact on the overall SMP five hundred and the Nasdaq 0:01:02.360 --> 0:01:04.040 is off by some seven tenths of a percent at 0:01:04.080 --> 0:01:06.720 the moment. Interesting that we get that GDP figure coming 0:01:06.880 --> 0:01:09.120 for the previous quarter in the US growth and actually 0:01:09.280 --> 0:01:11.560 the bad news is good news from a bond market perspective. 0:01:11.600 --> 0:01:14.200 Yields come down some four basis points because inflation and 0:01:14.280 --> 0:01:16.880 indeed growth is cooling in the United States. That's also 0:01:16.880 --> 0:01:19.360 helping bond markets around the world. And the European stock 0:01:19.400 --> 0:01:21.199 six hundred is higher to the tune of five tens 0:01:21.200 --> 0:01:24.000 percent as boring costs come down that a little bit 0:01:24.200 --> 0:01:26.640 and gives some energy to equities, but that energy is 0:01:26.680 --> 0:01:28.959 not rolling into the United States at the moment, and 0:01:29.000 --> 0:01:30.760 a lot of that is on the micro data. Let's 0:01:30.800 --> 0:01:32.960 have a look at what we've been having in terms 0:01:33.000 --> 0:01:34.240 of the earnings to digest. 0:01:34.480 --> 0:01:37.800 Now there are rays of light for some HP We're 0:01:37.880 --> 0:01:38.360 back baby. 0:01:38.400 --> 0:01:40.640 When it comes to PC demand, at least from the 0:01:40.640 --> 0:01:43.800 commercial perspective, we actually see growth in their PC part 0:01:43.800 --> 0:01:45.280 of the business, not so for printers. 0:01:45.480 --> 0:01:47.320 But when we're seeing optimism going. 0:01:47.120 --> 0:01:50.560 Forward for a PC on aipcs, we're up some fourteen 0:01:50.600 --> 0:01:54.560 percent for HP UiPath not so. We are currently seeing 0:01:54.640 --> 0:01:57.160 real pain for this particular company tumbling not only. 0:01:57.080 --> 0:01:59.400 Because it cuts its forecast it spurs. 0:01:59.080 --> 0:02:02.840 Downgrades across the street, but the CEO, rob Enslin, is 0:02:02.880 --> 0:02:06.680 also surprisingly departing the business. This is a worrying move 0:02:06.760 --> 0:02:09.200 in terms of go to market strategy going forward. A 0:02:09.200 --> 0:02:12.400 lot of digit downgrades coming from Needham, for example about Bank. 0:02:12.240 --> 0:02:13.200 Of America as well. 0:02:13.400 --> 0:02:15.919 Brad sales over there were off by a third big 0:02:15.960 --> 0:02:18.360 knot of course to ARC as Kathy Wood is long 0:02:18.440 --> 0:02:20.360 the stock. Now's have a look at what's happening in 0:02:20.440 --> 0:02:23.440 terms of the key stock to watch though, CRM, as 0:02:23.440 --> 0:02:26.679 it's known Salesforce wow down some twenty percent over the 0:02:26.760 --> 0:02:29.520 last of two days. Why will because we're getting some 0:02:29.639 --> 0:02:32.760 really painful growth statistics. Look, revenue is still set to 0:02:32.760 --> 0:02:36.200 grow some eight percent in this particular quarter, but that 0:02:36.320 --> 0:02:38.480 is well down from what we usually see in terms 0:02:38.639 --> 0:02:41.760 of double digit sales growth for Salesforce, is it not 0:02:41.880 --> 0:02:45.160 able to convert generator of AI? Let's ask Bloomberg's Brody Ford, 0:02:45.200 --> 0:02:48.560 who was there to break the earnings across after the 0:02:48.600 --> 0:02:49.399 bell yesterday? 0:02:49.840 --> 0:02:52.160 And I mean painful if you're long this stock today. 0:02:53.600 --> 0:02:54.839 Yeah, So here's what I think. 0:02:54.880 --> 0:02:58.880 The big question is, as corporations want to spend money 0:02:58.919 --> 0:03:02.440 on JENNYI while they're that servers with Dell chips from 0:03:02.560 --> 0:03:07.519 Nvidia cloud infrastructure for Microsoft, where is that money coming from. 0:03:07.720 --> 0:03:11.800 Budgets are still tight, corporations still want to spend money. 0:03:11.840 --> 0:03:14.320 You are in a kind of weird economic moment, and 0:03:14.400 --> 0:03:17.240 where it seems to be coming from is these enterprise 0:03:17.320 --> 0:03:21.520 software giants, right, the salesforces, the workdays. If you just 0:03:21.560 --> 0:03:24.240 bought a bunch of Nvidia H one hundreds, do you 0:03:24.400 --> 0:03:27.600 want to sign a seven figure contract to upgrade your 0:03:27.639 --> 0:03:31.480 CRM system. It seems like these are getting pushed out. 0:03:31.840 --> 0:03:35.760 And so while it looks like a small miss Salesforce reported, 0:03:35.840 --> 0:03:38.880 you know what, two percent lower than expected, it's a 0:03:39.000 --> 0:03:42.840 really concerning sign for investors that in this moment where 0:03:42.880 --> 0:03:46.440 AI spending is all the height, they might not be 0:03:46.480 --> 0:03:47.640 the most relevant name. 0:03:48.120 --> 0:03:51.400 Yeah, I mean exactly, echoed by RBC Compital Markets Rishi 0:03:51.520 --> 0:03:54.720 Juluria over there saying maybe this AI spend is coming 0:03:54.720 --> 0:03:59.000 at the expense on these software players, like Salesforce, like workdays, 0:03:59.000 --> 0:04:01.960 you say, which also had earnings. The thing is this 0:04:02.240 --> 0:04:05.480 worry is not being reflected by Mark Benioff. Look, he's 0:04:05.480 --> 0:04:07.000 an optimistic guy, always has been. 0:04:07.320 --> 0:04:09.640 But he's still saying real exuberance, really saying, we've got 0:04:09.840 --> 0:04:12.400 incredibly well positioned. How do we buy that? 0:04:13.760 --> 0:04:16.880 I think his framing was interesting in the release that 0:04:16.960 --> 0:04:20.520 he says we're very well positioned for AI over the 0:04:20.560 --> 0:04:24.400 next decade. Right, they have a lot of interesting features 0:04:24.440 --> 0:04:26.839 and products coming out. You know that you can generate 0:04:26.880 --> 0:04:31.400 emails or generate marketing stuff, but that's not expected to 0:04:31.440 --> 0:04:34.800 really create revenue until twenty twenty five, twenty twenty six. 0:04:34.880 --> 0:04:36.960 So if you're an investor and you can say, hey, 0:04:36.960 --> 0:04:41.920 and Vidia triple their earnings this year, Dell is up 0:04:42.000 --> 0:04:44.080 double this year. Right, A lot of the hardware names 0:04:44.120 --> 0:04:48.200 have even Azure has a bunch of AI workloads boosting earnings. 0:04:48.880 --> 0:04:52.400 Or I can wait around for these application software makers 0:04:52.480 --> 0:04:56.400 like Salesforce to maybe get some JENI revenue next year 0:04:56.480 --> 0:04:59.200 or the year after. It is too much of a 0:04:59.279 --> 0:05:02.320 wait and see story for investors to want to wait. 0:05:03.600 --> 0:05:06.159 Love that perspective, bredy Ford, thank you for bringing the 0:05:06.279 --> 0:05:09.359 energy today on all things Salesforce. Now, let's get the 0:05:09.360 --> 0:05:12.760 outlook for investing in technology also from the private side 0:05:13.000 --> 0:05:14.880 and some of the competitors that are coming through in 0:05:14.920 --> 0:05:17.720 terms of generative AI to compete with the likes of Salesforce. 0:05:17.960 --> 0:05:21.760 Hero Tomura is with us managing director at Humor Crossing Capital. 0:05:21.760 --> 0:05:24.960 Adbiases Now is a new flagship growth equity fund partnering 0:05:25.000 --> 0:05:29.080 with Alta Tiedeman Global, focused on investing in prominent private 0:05:29.120 --> 0:05:32.240 technology companies, not just in the US, but also over 0:05:32.279 --> 0:05:34.240 in Europe where you sit at the moment here and 0:05:34.279 --> 0:05:37.000 indeed in Asia where you have a lot of experience. Here, 0:05:37.120 --> 0:05:40.400 I want to go to your experience. Having invested and 0:05:40.440 --> 0:05:42.760 been one of the first checks into Message Bird now 0:05:42.800 --> 0:05:45.960 known as Bird, this is a generative AI automation company 0:05:46.000 --> 0:05:48.120 and really helping with CRM. 0:05:48.200 --> 0:05:50.479 More broadly, is that the sort. 0:05:50.320 --> 0:05:52.720 Of area that companies are wanting to spend in the 0:05:52.760 --> 0:05:55.680 startup area of generative AI at the expense of a 0:05:55.720 --> 0:05:57.200 salesforce for example. 0:05:58.240 --> 0:06:01.279 Yes, first and foremost, Caroline, thank you for having me. 0:06:01.360 --> 0:06:02.520 It's a pleasure to be here. 0:06:03.320 --> 0:06:05.920 You know, we're I think we're in the early innings 0:06:05.960 --> 0:06:10.320 of uh AI at the application layer. AI native companies 0:06:10.360 --> 0:06:13.320 are happening. I mean you talked about Message where it's 0:06:13.360 --> 0:06:17.360 in the communication space, Obviously there's a bunch of activity happening, 0:06:17.360 --> 0:06:21.400 and also in fintech uh with AI being a underlying 0:06:21.520 --> 0:06:25.000 driver of a massive shift of new companies that will 0:06:25.080 --> 0:06:28.600 also tackle some of the pain points that individuals have 0:06:29.120 --> 0:06:31.440 as well as enterprises. I think this is gonna be 0:06:31.480 --> 0:06:33.800 an exciting moment. But like you said, I think there's 0:06:34.200 --> 0:06:37.120 you know, there's the hardware layer, there's the Nvidia layer 0:06:37.240 --> 0:06:39.480 and things are happening there that are relevant today, and 0:06:40.000 --> 0:06:43.800 the computational power that will then come uh, will really 0:06:43.880 --> 0:06:44.520 allow us. 0:06:44.400 --> 0:06:45.080 To go further. 0:06:45.560 --> 0:06:50.040 Uh, whether it's powered by open AI on thropic. There's 0:06:50.200 --> 0:06:52.400 you know a lot of great companies in that infrastructure 0:06:52.440 --> 0:06:55.200 layer that that application layers will we'll work with and 0:06:55.320 --> 0:06:58.520 the whole ecosystem I think is very relevant going forward. 0:06:58.960 --> 0:06:59.920 Hey, how well. 0:06:59.880 --> 0:07:02.719 You seeing some of these application layers being able to 0:07:02.720 --> 0:07:05.080 weather the cost of doing their business though as well 0:07:05.120 --> 0:07:08.880 and access to well quite costly large language models. 0:07:09.640 --> 0:07:11.480 Yeah, that's a super good point. 0:07:11.600 --> 0:07:13.400 I think this is going to be an ongoing theme, 0:07:13.560 --> 0:07:16.760 the cost of doing business, the cost of enabling oneself 0:07:17.240 --> 0:07:20.280 with some of these very large language models that are 0:07:20.320 --> 0:07:23.680 being refined tuned. Also, you know the private versions that 0:07:23.760 --> 0:07:25.800 are that are being built on top of it. 0:07:25.880 --> 0:07:28.320 I know that Bloomberg has their own as well. 0:07:28.520 --> 0:07:31.160 These are all costly endeavors and I think that right 0:07:31.200 --> 0:07:33.800 now where you will see a lot of that adoption 0:07:33.960 --> 0:07:37.680 maybe happening. Are you know, obviously the hyperscalers as well 0:07:37.720 --> 0:07:41.040 as you know, perhaps big institutions, you know, big banks, 0:07:41.280 --> 0:07:44.040 big financial institutions. I think those are areas where people 0:07:44.080 --> 0:07:47.720 are really activating to you know, perhaps take advantage of 0:07:47.840 --> 0:07:52.480 some of the available AI power, but this will be costly. 0:07:53.480 --> 0:07:57.040 Therefore, where in the ecosystem do you want to write checks? 0:07:57.320 --> 0:07:58.800 Is it at the seed stage? 0:07:58.920 --> 0:08:01.000 Is it more in a and be where are some 0:08:01.000 --> 0:08:03.360 of the most appetizing risk rewards at the moment From 0:08:03.360 --> 0:08:04.720 a private company perspective. 0:08:06.280 --> 0:08:08.880 For me, what I've been doing my entire career is 0:08:08.880 --> 0:08:13.480 basically focusing on the mid to late stage development areas 0:08:13.560 --> 0:08:16.520 of the company life cycle. And I think, you know 0:08:16.600 --> 0:08:19.560 what's happening at the seed stage level, their early say 0:08:19.640 --> 0:08:23.320 fintech adoption of AI, these AI native companies, you know, 0:08:23.480 --> 0:08:25.840 they are the versions that are actually happening today at 0:08:25.840 --> 0:08:28.520 the earlier stage. What we will see is that some 0:08:28.560 --> 0:08:30.800 of these companies will develop there. You know, they have 0:08:30.920 --> 0:08:34.640 meaningful technology, they have wonderful people who are driving these businesses. 0:08:34.840 --> 0:08:37.200 And for me, it's really capturing that value in that 0:08:37.280 --> 0:08:40.800 transitional stage from what is venturers going into more of 0:08:40.800 --> 0:08:42.880 an execution race type of profile. 0:08:43.640 --> 0:08:47.560 And what's interesting is, of course, how we see the 0:08:47.640 --> 0:08:50.559 exit strategy if you're taking and writing checks in their 0:08:50.720 --> 0:08:55.199 more and older built out businesses, we then think of 0:08:55.280 --> 0:08:57.440 Klana that's eyeing the market at the moment, and you 0:08:57.679 --> 0:09:00.600 spent a long time being very or if it are 0:09:00.600 --> 0:09:04.319 a Tomaco well known for highlighting the activity in European 0:09:04.440 --> 0:09:07.880 venture space, in European startups, and here's the European iconic 0:09:07.920 --> 0:09:10.439 company maybe tapping the market. It sometimes soon what are 0:09:10.440 --> 0:09:11.920 exits look like more broadly for you? 0:09:13.640 --> 0:09:15.920 Well, I think you know, we've I think the broader 0:09:15.960 --> 0:09:19.600 market exits in twenty twenty two and twenty three have 0:09:19.720 --> 0:09:23.320 been restrained, to say the least. But going into twenty 0:09:23.360 --> 0:09:26.760 twenty four, these companies are great companies, you know, whether 0:09:26.760 --> 0:09:30.040 it's earlier or later, you have you know, category defining 0:09:30.120 --> 0:09:34.520 companies like Klarna and others who are looking to you know, 0:09:35.360 --> 0:09:38.360 take on public capital to even grow further. And I 0:09:38.360 --> 0:09:41.880 think that moment, that moment will be you know, dictated 0:09:41.880 --> 0:09:44.480 by market realities. I think that you know, everyone we 0:09:44.600 --> 0:09:48.559 now have to really focus on both investing and taking 0:09:48.600 --> 0:09:51.760 the time to let companies develop, but also then thinking 0:09:51.760 --> 0:09:54.400 about when's the right time to access public markets. This 0:09:54.520 --> 0:09:56.480 is a great point and I think there will be 0:09:56.520 --> 0:10:00.760 focused on market realities to enable that the happen as well. 0:10:01.280 --> 0:10:04.120 Here we're a global show, and you've got a lot 0:10:04.160 --> 0:10:08.200 of global experience. You are helping Asian companies tap US 0:10:08.320 --> 0:10:12.320 public markets, you were working deeply within Japan as well. 0:10:12.520 --> 0:10:14.200 Do you to just give us a sense of where 0:10:14.240 --> 0:10:17.080 the energy lies at the moment, from startup culture, from 0:10:17.200 --> 0:10:20.480 artificial intelligence and generative aim particular. We always want to 0:10:20.600 --> 0:10:24.560 pitch China versus the US, but what's going on more globally. 0:10:25.120 --> 0:10:27.240 That's a good I think there's that, you know, I 0:10:27.240 --> 0:10:30.360 think technology, at least in the market of technology and innovation, 0:10:30.600 --> 0:10:33.520 I think it's you know, ubiquitous, and it's everywhere. I 0:10:33.520 --> 0:10:36.320 think there's versions that happen in Asian, versions that happen 0:10:36.360 --> 0:10:37.120 in Europe. 0:10:36.840 --> 0:10:37.880 And obviously the US. 0:10:37.920 --> 0:10:40.360 I think what I would say is the center of 0:10:40.360 --> 0:10:42.840 gravity that has to do with you know, the current 0:10:42.920 --> 0:10:45.040 AI language. 0:10:45.120 --> 0:10:47.319 Large like ll ms that are that are you know 0:10:47.640 --> 0:10:50.280 that we know about and speak of daily. 0:10:50.640 --> 0:10:53.920 Those are West coast. You know that is happening in 0:10:54.160 --> 0:10:56.040 the US and the West Coast. I think in Europe 0:10:56.080 --> 0:11:00.760 you're obviously seeing companies that are also in the AI space, 0:11:00.840 --> 0:11:03.800 like Mestra. There's a lot of interesting activity, but each 0:11:03.840 --> 0:11:07.200 region has the ability to create great companies and I 0:11:07.200 --> 0:11:09.160 think this will continue to be the case. 0:11:10.520 --> 0:11:12.200 In the near term. 0:11:12.360 --> 0:11:14.960 Well come back in the near time, we hope, Hero Tomora, 0:11:15.200 --> 0:11:19.000 thank you so much. Fascinating new funds working in allegiance 0:11:19.040 --> 0:11:22.880 of course with a key wealth management player Youmo crossing 0:11:22.920 --> 0:11:26.280 Capital Advisors managing director there and having a new fund 0:11:26.320 --> 0:11:29.480 announcement with ALTI Global. I mean, while coming up, we 0:11:29.559 --> 0:11:32.079 sit down with the CEO of C three AI and 0:11:32.200 --> 0:11:35.559 shares jump as you guessed it, Generative AI demand is 0:11:35.600 --> 0:11:37.199 really driving the company's guidance higher. 0:11:37.559 --> 0:11:38.679 This is blome meg technology. 0:11:49.760 --> 0:11:52.120 Let's just check in on C three AI shares having 0:11:52.200 --> 0:11:54.520 a nice jump today after the software company gave a 0:11:54.559 --> 0:11:57.800 stronger than expected annual sales forecast amid demand for you 0:11:57.840 --> 0:12:01.200 guessed it, artificial intelligence features joining us now as C 0:12:01.320 --> 0:12:05.040 three AI CEO Tom Siebel, and it looks as though 0:12:05.080 --> 0:12:09.120 from my perspective, it's all about government spending here, federal local. 0:12:09.960 --> 0:12:13.560 Why the focus there? What's going so well well? 0:12:13.600 --> 0:12:17.440 Federal is buy is a very rapidly going business. 0:12:17.480 --> 0:12:21.320 I think our federal business, particularly Defense Intelligence group, greater 0:12:21.360 --> 0:12:22.880 than one hundred percent year over year. 0:12:23.679 --> 0:12:24.520 State local. 0:12:24.840 --> 0:12:28.679 This is about government services is a huge adoptri of 0:12:28.800 --> 0:12:34.520 enterprise AI. But so is manufacturing, financial services, petrochemicals, energy. 0:12:34.840 --> 0:12:37.600 So i'd say across the board, we're. 0:12:37.400 --> 0:12:43.959 Seeing very, very substantially increased demand in applying enterprise AI 0:12:44.200 --> 0:12:48.960 to business processes, to government processes, to defense and intelligence. 0:12:49.360 --> 0:12:51.719 What's interesting though, is, of course we've had a bit 0:12:51.720 --> 0:12:56.120 of worry about corporate enterprise spending on software more generally 0:12:56.200 --> 0:13:00.200 coming from well, the results of salesforce today. What are 0:13:00.200 --> 0:13:03.320 you seeing in terms of enterprise because it does look 0:13:03.320 --> 0:13:05.560 as though the real beef of your growth is coming 0:13:05.559 --> 0:13:08.080 from federal government. What is sentiment like for the oil 0:13:08.080 --> 0:13:10.480 and gas companies that you're working with, for the other 0:13:10.520 --> 0:13:11.720 broader sectors. 0:13:11.920 --> 0:13:19.120 Oil and gas, utilities, government services, consumer packaged goods, agribusiness. 0:13:19.400 --> 0:13:23.679 We're seeing, you know, very significant growth and increased demand 0:13:23.760 --> 0:13:27.079 in enterprise AI. Now I understand, Carolyn, you can think 0:13:27.120 --> 0:13:30.319 of C three AI. This really is the first native 0:13:30.679 --> 0:13:34.840 AI company. We started fifteen years ago building an enterprise 0:13:34.920 --> 0:13:39.040 AI stack. This is before Google Cloud, before or when 0:13:39.080 --> 0:13:44.120 AWS was this big, before the before the graphic GPU. 0:13:44.640 --> 0:13:48.960 So we started early. We spent billions building our software stack. 0:13:49.280 --> 0:13:53.840 Today we have ninety turnkey enterprise applications for supply chain, 0:13:53.920 --> 0:13:56.040 demand chain, fraud, whatever it might be. 0:13:56.120 --> 0:13:58.280 So think about a C three AI. 0:13:58.400 --> 0:14:02.240 We're in a little bit different class than these legacy 0:14:02.600 --> 0:14:07.960 enterprise application software people were. This is the first enterprise AI, 0:14:08.320 --> 0:14:10.240 pure enterprise AI play. 0:14:10.760 --> 0:14:13.120 Well, you know those legacy people, Well, you sold your 0:14:13.160 --> 0:14:17.160 previous business too, Oracle, And I'm interested as to why, therefore, 0:14:17.400 --> 0:14:19.680 to be brutally honest, why your share prices sort of 0:14:19.680 --> 0:14:22.280 hasn't been wrapped up in the exuberance of AI. If 0:14:22.320 --> 0:14:25.280 you are such a pleure play I'm looking at Well, 0:14:25.280 --> 0:14:27.800 it's still well the heighs of twenty twenty one. What 0:14:27.880 --> 0:14:29.400 do you think you're still having to prove to the 0:14:29.440 --> 0:14:30.320 market at the moment. 0:14:31.520 --> 0:14:34.600 Well, I think that we're at the very early stages 0:14:34.920 --> 0:14:39.120 of this enterprise market of AI market. You know, we're 0:14:39.160 --> 0:14:42.640 seeing a lot of interest right now in silicon and infrastructure. 0:14:42.840 --> 0:14:45.200 If we look at the value of the stack AI 0:14:45.280 --> 0:14:48.800 stack at the bottom of silicon, above that you have infrastructure, 0:14:49.080 --> 0:14:52.680 Above that you have foundation models, and on top of 0:14:52.720 --> 0:14:55.880 that you have the of the applications. Well, that's the 0:14:56.280 --> 0:14:58.080 level of the stack. That's the portion of the stack 0:14:58.120 --> 0:15:01.240 in which we play. Now all of silicon that you 0:15:01.280 --> 0:15:04.479 know that n Nvidia is selling and all this infrastructure 0:15:04.480 --> 0:15:07.520 that hyperscalers are selling, they're only selling it for one reason. 0:15:07.560 --> 0:15:11.640 Building this capacity is to run enterprise AA applications. And Carolyn, 0:15:11.800 --> 0:15:12.640 that's what we do. 0:15:13.120 --> 0:15:17.160 So let's get really detailed, Tom, what are say? What 0:15:17.360 --> 0:15:19.080 can you give us an anecdote of what a key 0:15:19.080 --> 0:15:22.120 company and manufacturing is using your technology to achieve? 0:15:22.760 --> 0:15:25.320 The United States Air Force is using it for predictive 0:15:25.320 --> 0:15:29.440 maintenance for today twenty two weapons systems F fifteen F 0:15:29.480 --> 0:15:32.840 sixteen F eighteen F thirty five, et cetera. Okay, and 0:15:33.080 --> 0:15:38.560 by using predictive analytics predictive maintenance, we can prevent unplanned 0:15:39.440 --> 0:15:43.320 system outage and increase aircraft availability in any given day 0:15:43.720 --> 0:15:48.960 by twenty five percent. Predictive maintenance at DOW here in 0:15:49.160 --> 0:15:53.520 you know steam cracking units associated with polyethylene production. Okay, 0:15:53.600 --> 0:15:56.360 we can reduce unplanned downtime by twenty percent. 0:15:56.400 --> 0:15:58.880 Hey, that's worth hundreds of millions of years to DOW. 0:15:59.400 --> 0:16:02.800 So these these are these are you know, two very 0:16:02.840 --> 0:16:07.400 real applications with you know, substantial economic return. I would 0:16:07.400 --> 0:16:09.480 say the application that I that I SAYD at the 0:16:09.560 --> 0:16:12.880 United States Air Force might be the largest enterprise application 0:16:12.960 --> 0:16:16.760 on Earth. Shell Shell is realizing, you know, two billion 0:16:16.840 --> 0:16:19.640 dollars an economic benefit a year from what they call 0:16:19.760 --> 0:16:24.240 shell AI, which is C three I combined with with azure. 0:16:24.480 --> 0:16:29.480 So the returns are substantial. This is no drill, This 0:16:29.520 --> 0:16:31.320 is not higher This is very real. 0:16:32.480 --> 0:16:34.240 What is the risk? Very real? 0:16:34.400 --> 0:16:38.720 We hype p the efficiencies of AI, We hype up 0:16:38.760 --> 0:16:42.240 the market valuations. We also sometimes in the media like 0:16:42.240 --> 0:16:44.000 to hype up the risks. What do you take to 0:16:44.360 --> 0:16:46.600 the risks and regulatory respect to that. 0:16:47.520 --> 0:16:50.720 The risks associated with AR are daunting, and I would 0:16:50.760 --> 0:16:53.080 be afraid. Uh, you know, we need to be very 0:16:53.120 --> 0:16:56.880 concerned about personal privacy. I believe that, you know, personal 0:16:56.920 --> 0:17:01.960 privacy is a fundamental human right, Okay, and AI that 0:17:02.040 --> 0:17:05.880 threatens that we will you know, so I think privacy 0:17:05.920 --> 0:17:10.560 issues will these you we're seeing, uh you know social media, 0:17:10.600 --> 0:17:13.320 the AI and social media being used to you know, 0:17:13.359 --> 0:17:17.960 it's a public health hazard. Think about you know, depressions, suicide, 0:17:18.119 --> 0:17:22.040 body imag issues in young women. These technologies are being 0:17:22.160 --> 0:17:27.240 used to interfere in democratic processes there. So you know, 0:17:27.320 --> 0:17:30.480 the risks associated where they are very real and we 0:17:30.560 --> 0:17:32.640 need to be very concerned and we need to plan 0:17:32.720 --> 0:17:34.480 for them, and we need to avoid them. 0:17:35.119 --> 0:17:37.760 Well keep coming with some of the ideas and the 0:17:37.800 --> 0:17:39.199 solutions to planning for it. 0:17:39.400 --> 0:17:40.560 Tom Siebel, thanks for trulling. 0:17:40.560 --> 0:17:46.639 Has three your numbers today C three AI CEO. Then 0:17:50.520 --> 0:17:52.600 it is time now for talking tech. First up, the 0:17:52.600 --> 0:17:56.439 Biden administration so to host an event on competition in AI. 0:17:56.920 --> 0:17:59.320 But the big tech names in the industry well haven't 0:17:59.359 --> 0:18:03.760 been invited. In Vidia, Alphabet, Amazon, Meta, Microsoft all are 0:18:03.880 --> 0:18:06.720 absent from the panel. Instead, the workshop is set to 0:18:06.720 --> 0:18:10.600 bring together top VC firms along within forces regulators from 0:18:10.600 --> 0:18:13.159 the US, UK and EU. This is according to the 0:18:13.240 --> 0:18:16.919 US Assistant Attorney General for Antitrust. The speaker Liist was 0:18:17.119 --> 0:18:21.320 intentional plus OpenAI says the impact of generative AI is 0:18:21.560 --> 0:18:24.720 just beginning from an economic perspective. Speaking at a conference 0:18:24.720 --> 0:18:28.520 in Singapore, the company's CTO, that's Mira Murati, said its 0:18:28.720 --> 0:18:32.199 latest Chatchipt four model is becoming more intuitive and spurring 0:18:32.240 --> 0:18:35.400 more adoption, saying quote, over a very short amount of time, 0:18:35.520 --> 0:18:40.439 these aisystems have entered the workforce as collaborators, and Donald 0:18:40.480 --> 0:18:43.159 Trump and Elon Musk will have talked about a possible 0:18:43.240 --> 0:18:47.320 advisory role for the Tesla CEO if Trump wins the election. 0:18:47.560 --> 0:18:49.600 That's according to the Wall Street Journal. The two are 0:18:49.640 --> 0:18:52.960 said to have been discussed ways to give Musk formal 0:18:53.040 --> 0:18:56.280 input and for policies related to border security and the economy. 0:18:56.440 --> 0:18:58.840 However, the role hasn't been fully developed. 0:18:58.760 --> 0:19:01.560 And it might not happen. Well, that would be yet 0:19:01.720 --> 0:19:05.800 another hat for Elon Musk. Meanwhile, Tesla as a company 0:19:05.960 --> 0:19:08.800 is kind of in a bit of disarray. Layoffs are mounting, 0:19:09.040 --> 0:19:12.280 morale is shattered, stock is cratering, and sales are anemic, 0:19:12.680 --> 0:19:15.760 and some investors say it's got a distracted leader at 0:19:15.800 --> 0:19:18.639 the helm since Elon Musk runs five other companies, so 0:19:19.000 --> 0:19:20.080 is everything still. 0:19:19.880 --> 0:19:21.560 Right in EON's universe? 0:19:21.840 --> 0:19:24.600 It's bringing Bloomberg's Kurt Wagner for more on the big take, 0:19:24.640 --> 0:19:27.760 where you articulate what the universe is of Eno Musk 0:19:28.160 --> 0:19:31.040 and who actually helps run it. Can you give us 0:19:31.080 --> 0:19:33.080 a sense of why you decided to do this deep dive? 0:19:34.440 --> 0:19:34.840 Of course? 0:19:34.920 --> 0:19:35.160 Yeah. 0:19:35.200 --> 0:19:37.560 I mean, as you mentioned, Elon is running six companies 0:19:37.600 --> 0:19:40.120 at once, right, But there's only so much time in 0:19:40.160 --> 0:19:42.520 the day, and so we started asking ourselves, well, who 0:19:42.520 --> 0:19:45.640 are the people that are actually, you know, carrying out 0:19:45.880 --> 0:19:50.119 the day in, day out tasks of running these businesses? 0:19:50.400 --> 0:19:53.400 And we realize it's not always very clear, right. It's 0:19:53.440 --> 0:19:55.920 a tough reporting challenge to sort of figure out who 0:19:55.920 --> 0:19:58.560 the power players are in Elon's orbit. So we spent 0:19:58.600 --> 0:20:00.159 a couple of months did a lot of reporting. We 0:20:00.200 --> 0:20:03.160 tried to map this out into what we called sort 0:20:03.200 --> 0:20:05.760 of a solar system with Elon is the sun at 0:20:05.760 --> 0:20:08.360 the center and everyone else sort of rotating around him. 0:20:08.680 --> 0:20:12.159 I think it's a slight nod to you know, SpaceX 0:20:12.160 --> 0:20:15.040 and his ambitions in space, but also it's just the 0:20:15.080 --> 0:20:17.720 reality like if you work for Elon, you're kind of 0:20:17.760 --> 0:20:20.119 at his beck and call and you orbit him, and 0:20:20.400 --> 0:20:22.480 he is the power source there. And so we tried 0:20:22.480 --> 0:20:24.399 to map this out for people so they get a 0:20:24.480 --> 0:20:26.720 sense for who the people are behind Elon Musk that 0:20:26.720 --> 0:20:28.240 are doing the day in and day out past. 0:20:28.520 --> 0:20:32.240 Can you articulate a few I mean actually quite diverse 0:20:32.359 --> 0:20:34.600 calstic characters, a couple of women in there. When you 0:20:34.600 --> 0:20:37.240 think of SpaceX and Twitter now X. 0:20:39.080 --> 0:20:41.680 Yeah, I mean each of the companies specifically has their 0:20:42.320 --> 0:20:45.040 you know, senior leaders that are running so Gwen Shotwell 0:20:45.640 --> 0:20:49.080 for example, at SpaceX, I feel like if you look 0:20:49.119 --> 0:20:51.960 though at the advisors that he has who tend to 0:20:51.960 --> 0:20:54.640 show up at various companies you come to. You think 0:20:54.640 --> 0:20:57.280 of people like Alex Spiro, his lawyer, right, he showed 0:20:57.359 --> 0:20:59.879 up repeatedly at all of these different companies. You think 0:20:59.880 --> 0:21:03.000 of Jared Birchell, his business manager, also shows up repeatedly. 0:21:03.040 --> 0:21:06.399 There's other advisors, you know, people who show up on 0:21:06.800 --> 0:21:11.080 various or multiple boards, friends like David Sachs, who sort 0:21:11.119 --> 0:21:13.280 of advise him but don't necessarily have a formal role 0:21:13.320 --> 0:21:16.600 at these companies. So the orbit here or the solar 0:21:16.640 --> 0:21:18.960 system here is supposed to sort of show all these 0:21:19.040 --> 0:21:22.359 various relationships and how they intertwine and intertwined they do. 0:21:22.480 --> 0:21:24.880