Speaker 1: From Mahart. We're Innovation, Money and Power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3: I'm Caroline Heyde of Blomberg's World headquarters in New York
Speaker 3: and Ludlow is on assignment.
Speaker 4: This is Bloombog Technology coming up.
Speaker 3: Salesforce plunges as sales growth for the current quarter stalls
Speaker 3: to its slowest in history. Details to come. Plus, we
Speaker 3: continue the earning's coverage and sit down with the CEO
Speaker 3: of C three AI as a company reports well, some
Speaker 3: pretty decent results, and we take a deep dive into
Speaker 3: Elon Musk's universe in today's at Bloombog Big take all
Speaker 3: that and so much more coming up. First, that's checking
Speaker 3: on these markets, and we are dragged lower by the
Speaker 3: absolute plummeting in of course salesforce, which is having an
Speaker 3: impact on the overall SMP five hundred and the Nasdaq
Speaker 3: is off by some seven tenths of a percent at
Speaker 3: the moment. Interesting that we get that GDP figure coming
Speaker 3: for the previous quarter in the US growth and actually
Speaker 3: the bad news is good news from a bond market perspective.
Speaker 3: Yields come down some four basis points because inflation and
Speaker 3: indeed growth is cooling in the United States. That's also
Speaker 3: helping bond markets around the world. And the European stock
Speaker 3: six hundred is higher to the tune of five tens
Speaker 3: percent as boring costs come down that a little bit
Speaker 3: and gives some energy to equities, but that energy is
Speaker 3: not rolling into the United States at the moment, and
Speaker 3: a lot of that is on the micro data. Let's
Speaker 3: have a look at what we've been having in terms
Speaker 3: of the earnings to digest.
Speaker 4: Now there are rays of light for some HP We're
Speaker 4: back baby.
Speaker 3: When it comes to PC demand, at least from the
Speaker 3: commercial perspective, we actually see growth in their PC part
Speaker 3: of the business, not so for printers.
Speaker 4: But when we're seeing optimism going.
Speaker 3: Forward for a PC on aipcs, we're up some fourteen
Speaker 3: percent for HP UiPath not so. We are currently seeing
Speaker 3: real pain for this particular company tumbling not only.
Speaker 4: Because it cuts its forecast it spurs.
Speaker 3: Downgrades across the street, but the CEO, rob Enslin, is
Speaker 3: also surprisingly departing the business. This is a worrying move
Speaker 3: in terms of go to market strategy going forward. A
Speaker 3: lot of digit downgrades coming from Needham, for example about Bank.
Speaker 4: Of America as well.
Speaker 3: Brad sales over there were off by a third big
Speaker 3: knot of course to ARC as Kathy Wood is long
Speaker 3: the stock. Now's have a look at what's happening in
Speaker 3: terms of the key stock to watch though, CRM, as
Speaker 3: it's known Salesforce wow down some twenty percent over the
Speaker 3: last of two days. Why will because we're getting some
Speaker 3: really painful growth statistics. Look, revenue is still set to
Speaker 3: grow some eight percent in this particular quarter, but that
Speaker 3: is well down from what we usually see in terms
Speaker 3: of double digit sales growth for Salesforce, is it not
Speaker 3: able to convert generator of AI? Let's ask Bloomberg's Brody Ford,
Speaker 3: who was there to break the earnings across after the
Speaker 3: bell yesterday?
Speaker 4: And I mean painful if you're long this stock today.
Speaker 5: Yeah, So here's what I think.
Speaker 6: The big question is, as corporations want to spend money
Speaker 6: on JENNYI while they're that servers with Dell chips from
Speaker 6: Nvidia cloud infrastructure for Microsoft, where is that money coming from.
Speaker 6: Budgets are still tight, corporations still want to spend money.
Speaker 6: You are in a kind of weird economic moment, and
Speaker 6: where it seems to be coming from is these enterprise
Speaker 6: software giants, right, the salesforces, the workdays. If you just
Speaker 6: bought a bunch of Nvidia H one hundreds, do you
Speaker 6: want to sign a seven figure contract to upgrade your
Speaker 6: CRM system. It seems like these are getting pushed out.
Speaker 6: And so while it looks like a small miss Salesforce reported,
Speaker 6: you know what, two percent lower than expected, it's a
Speaker 6: really concerning sign for investors that in this moment where
Speaker 6: AI spending is all the height, they might not be
Speaker 6: the most relevant name.
Speaker 3: Yeah, I mean exactly, echoed by RBC Compital Markets Rishi
Speaker 3: Juluria over there saying maybe this AI spend is coming
Speaker 3: at the expense on these software players, like Salesforce, like workdays,
Speaker 3: you say, which also had earnings. The thing is this
Speaker 3: worry is not being reflected by Mark Benioff. Look, he's
Speaker 3: an optimistic guy, always has been.
Speaker 4: But he's still saying real exuberance, really saying, we've got
Speaker 4: incredibly well positioned. How do we buy that?
Speaker 6: I think his framing was interesting in the release that
Speaker 6: he says we're very well positioned for AI over the
Speaker 6: next decade. Right, they have a lot of interesting features
Speaker 6: and products coming out. You know that you can generate
Speaker 6: emails or generate marketing stuff, but that's not expected to
Speaker 6: really create revenue until twenty twenty five, twenty twenty six.
Speaker 6: So if you're an investor and you can say, hey,
Speaker 6: and Vidia triple their earnings this year, Dell is up
Speaker 6: double this year. Right, A lot of the hardware names
Speaker 6: have even Azure has a bunch of AI workloads boosting earnings.
Speaker 6: Or I can wait around for these application software makers
Speaker 6: like Salesforce to maybe get some JENI revenue next year
Speaker 6: or the year after. It is too much of a
Speaker 6: wait and see story for investors to want to wait.
Speaker 3: Love that perspective, bredy Ford, thank you for bringing the
Speaker 3: energy today on all things Salesforce. Now, let's get the
Speaker 3: outlook for investing in technology also from the private side
Speaker 3: and some of the competitors that are coming through in
Speaker 3: terms of generative AI to compete with the likes of Salesforce.
Speaker 3: Hero Tomura is with us managing director at Humor Crossing Capital.
Speaker 3: Adbiases Now is a new flagship growth equity fund partnering
Speaker 3: with Alta Tiedeman Global, focused on investing in prominent private
Speaker 3: technology companies, not just in the US, but also over
Speaker 3: in Europe where you sit at the moment here and
Speaker 3: indeed in Asia where you have a lot of experience. Here,
Speaker 3: I want to go to your experience. Having invested and
Speaker 3: been one of the first checks into Message Bird now
Speaker 3: known as Bird, this is a generative AI automation company
Speaker 3: and really helping with CRM.
Speaker 4: More broadly, is that the sort.
Speaker 3: Of area that companies are wanting to spend in the
Speaker 3: startup area of generative AI at the expense of a
Speaker 3: salesforce for example.
Speaker 7: Yes, first and foremost, Caroline, thank you for having me.
Speaker 1: It's a pleasure to be here.
Speaker 7: You know, we're I think we're in the early innings
Speaker 7: of uh AI at the application layer. AI native companies
Speaker 7: are happening. I mean you talked about Message where it's
Speaker 7: in the communication space, Obviously there's a bunch of activity happening,
Speaker 7: and also in fintech uh with AI being a underlying
Speaker 7: driver of a massive shift of new companies that will
Speaker 7: also tackle some of the pain points that individuals have
Speaker 7: as well as enterprises. I think this is gonna be
Speaker 7: an exciting moment. But like you said, I think there's
Speaker 7: you know, there's the hardware layer, there's the Nvidia layer
Speaker 7: and things are happening there that are relevant today, and
Speaker 7: the computational power that will then come uh, will really
Speaker 7: allow us.
Speaker 1: To go further.
Speaker 7: Uh, whether it's powered by open AI on thropic. There's
Speaker 7: you know a lot of great companies in that infrastructure
Speaker 7: layer that that application layers will we'll work with and
Speaker 7: the whole ecosystem I think is very relevant going forward.
Speaker 8: Hey, how well.
Speaker 3: You seeing some of these application layers being able to
Speaker 3: weather the cost of doing their business though as well
Speaker 3: and access to well quite costly large language models.
Speaker 1: Yeah, that's a super good point.
Speaker 7: I think this is going to be an ongoing theme,
Speaker 7: the cost of doing business, the cost of enabling oneself
Speaker 7: with some of these very large language models that are
Speaker 7: being refined tuned. Also, you know the private versions that
Speaker 7: are that are being built on top of it.
Speaker 1: I know that Bloomberg has their own as well.
Speaker 7: These are all costly endeavors and I think that right
Speaker 7: now where you will see a lot of that adoption
Speaker 7: maybe happening. Are you know, obviously the hyperscalers as well
Speaker 7: as you know, perhaps big institutions, you know, big banks,
Speaker 7: big financial institutions. I think those are areas where people
Speaker 7: are really activating to you know, perhaps take advantage of
Speaker 7: some of the available AI power, but this will be costly.
Speaker 3: Therefore, where in the ecosystem do you want to write checks?
Speaker 4: Is it at the seed stage?
Speaker 3: Is it more in a and be where are some
Speaker 3: of the most appetizing risk rewards at the moment From
Speaker 3: a private company perspective.
Speaker 7: For me, what I've been doing my entire career is
Speaker 7: basically focusing on the mid to late stage development areas
Speaker 7: of the company life cycle. And I think, you know
Speaker 7: what's happening at the seed stage level, their early say
Speaker 7: fintech adoption of AI, these AI native companies, you know,
Speaker 7: they are the versions that are actually happening today at
Speaker 7: the earlier stage. What we will see is that some
Speaker 7: of these companies will develop there. You know, they have
Speaker 7: meaningful technology, they have wonderful people who are driving these businesses.
Speaker 7: And for me, it's really capturing that value in that
Speaker 7: transitional stage from what is venturers going into more of
Speaker 7: an execution race type of profile.
Speaker 3: And what's interesting is, of course, how we see the
Speaker 3: exit strategy if you're taking and writing checks in their
Speaker 3: more and older built out businesses, we then think of
Speaker 3: Klana that's eyeing the market at the moment, and you
Speaker 3: spent a long time being very or if it are
Speaker 3: a Tomaco well known for highlighting the activity in European
Speaker 3: venture space, in European startups, and here's the European iconic
Speaker 3: company maybe tapping the market. It sometimes soon what are
Speaker 3: exits look like more broadly for you?
Speaker 7: Well, I think you know, we've I think the broader
Speaker 7: market exits in twenty twenty two and twenty three have
Speaker 7: been restrained, to say the least. But going into twenty
Speaker 7: twenty four, these companies are great companies, you know, whether
Speaker 7: it's earlier or later, you have you know, category defining
Speaker 7: companies like Klarna and others who are looking to you know,
Speaker 7: take on public capital to even grow further. And I
Speaker 7: think that moment, that moment will be you know, dictated
Speaker 7: by market realities. I think that you know, everyone we
Speaker 7: now have to really focus on both investing and taking
Speaker 7: the time to let companies develop, but also then thinking
Speaker 7: about when's the right time to access public markets. This
Speaker 7: is a great point and I think there will be
Speaker 7: focused on market realities to enable that the happen as well.
Speaker 3: Here we're a global show, and you've got a lot
Speaker 3: of global experience. You are helping Asian companies tap US
Speaker 3: public markets, you were working deeply within Japan as well.
Speaker 3: Do you to just give us a sense of where
Speaker 3: the energy lies at the moment, from startup culture, from
Speaker 3: artificial intelligence and generative aim particular. We always want to
Speaker 3: pitch China versus the US, but what's going on more globally.
Speaker 7: That's a good I think there's that, you know, I
Speaker 7: think technology, at least in the market of technology and innovation,
Speaker 7: I think it's you know, ubiquitous, and it's everywhere. I
Speaker 7: think there's versions that happen in Asian, versions that happen
Speaker 7: in Europe.
Speaker 1: And obviously the US.
Speaker 7: I think what I would say is the center of
Speaker 7: gravity that has to do with you know, the current
Speaker 7: AI language.
Speaker 1: Large like ll ms that are that are you know
Speaker 1: that we know about and speak of daily.
Speaker 7: Those are West coast. You know that is happening in
Speaker 7: the US and the West Coast. I think in Europe
Speaker 7: you're obviously seeing companies that are also in the AI space,
Speaker 7: like Mestra. There's a lot of interesting activity, but each
Speaker 7: region has the ability to create great companies and I
Speaker 7: think this will continue to be the case.
Speaker 1: In the near term.
Speaker 3: Well come back in the near time, we hope, Hero Tomora,
Speaker 3: thank you so much. Fascinating new funds working in allegiance
Speaker 3: of course with a key wealth management player Youmo crossing
Speaker 3: Capital Advisors managing director there and having a new fund
Speaker 3: announcement with ALTI Global. I mean, while coming up, we
Speaker 3: sit down with the CEO of C three AI and
Speaker 3: shares jump as you guessed it, Generative AI demand is
Speaker 3: really driving the company's guidance higher.
Speaker 4: This is blome meg technology.
Speaker 3: Let's just check in on C three AI shares having
Speaker 3: a nice jump today after the software company gave a
Speaker 3: stronger than expected annual sales forecast amid demand for you
Speaker 3: guessed it, artificial intelligence features joining us now as C
Speaker 3: three AI CEO Tom Siebel, and it looks as though
Speaker 3: from my perspective, it's all about government spending here, federal local.
Speaker 4: Why the focus there? What's going so well well?
Speaker 5: Federal is buy is a very rapidly going business.
Speaker 2: I think our federal business, particularly Defense Intelligence group, greater
Speaker 2: than one hundred percent year over year.
Speaker 5: State local.
Speaker 2: This is about government services is a huge adoptri of
Speaker 2: enterprise AI. But so is manufacturing, financial services, petrochemicals, energy.
Speaker 5: So i'd say across the board, we're.
Speaker 2: Seeing very, very substantially increased demand in applying enterprise AI
Speaker 2: to business processes, to government processes, to defense and intelligence.
Speaker 3: What's interesting though, is, of course we've had a bit
Speaker 3: of worry about corporate enterprise spending on software more generally
Speaker 3: coming from well, the results of salesforce today. What are
Speaker 3: you seeing in terms of enterprise because it does look
Speaker 3: as though the real beef of your growth is coming
Speaker 3: from federal government. What is sentiment like for the oil
Speaker 3: and gas companies that you're working with, for the other
Speaker 3: broader sectors.
Speaker 2: Oil and gas, utilities, government services, consumer packaged goods, agribusiness.
Speaker 2: We're seeing, you know, very significant growth and increased demand
Speaker 2: in enterprise AI. Now I understand, Carolyn, you can think
Speaker 2: of C three AI. This really is the first native
Speaker 2: AI company. We started fifteen years ago building an enterprise
Speaker 2: AI stack. This is before Google Cloud, before or when
Speaker 2: AWS was this big, before the before the graphic GPU.
Speaker 2: So we started early. We spent billions building our software stack.
Speaker 2: Today we have ninety turnkey enterprise applications for supply chain,
Speaker 2: demand chain, fraud, whatever it might be.
Speaker 5: So think about a C three AI.
Speaker 2: We're in a little bit different class than these legacy
Speaker 2: enterprise application software people were. This is the first enterprise AI,
Speaker 2: pure enterprise AI play.
Speaker 3: Well, you know those legacy people, Well, you sold your
Speaker 3: previous business too, Oracle, And I'm interested as to why, therefore,
Speaker 3: to be brutally honest, why your share prices sort of
Speaker 3: hasn't been wrapped up in the exuberance of AI. If
Speaker 3: you are such a pleure play I'm looking at Well,
Speaker 3: it's still well the heighs of twenty twenty one. What
Speaker 3: do you think you're still having to prove to the
Speaker 3: market at the moment.
Speaker 2: Well, I think that we're at the very early stages
Speaker 2: of this enterprise market of AI market. You know, we're
Speaker 2: seeing a lot of interest right now in silicon and infrastructure.
Speaker 2: If we look at the value of the stack AI
Speaker 2: stack at the bottom of silicon, above that you have infrastructure,
Speaker 2: Above that you have foundation models, and on top of
Speaker 2: that you have the of the applications. Well, that's the
Speaker 2: level of the stack. That's the portion of the stack
Speaker 2: in which we play. Now all of silicon that you
Speaker 2: know that n Nvidia is selling and all this infrastructure
Speaker 2: that hyperscalers are selling, they're only selling it for one reason.
Speaker 2: Building this capacity is to run enterprise AA applications. And Carolyn,
Speaker 2: that's what we do.
Speaker 3: So let's get really detailed, Tom, what are say? What
Speaker 3: can you give us an anecdote of what a key
Speaker 3: company and manufacturing is using your technology to achieve?
Speaker 2: The United States Air Force is using it for predictive
Speaker 2: maintenance for today twenty two weapons systems F fifteen F
Speaker 2: sixteen F eighteen F thirty five, et cetera. Okay, and
Speaker 2: by using predictive analytics predictive maintenance, we can prevent unplanned
Speaker 2: system outage and increase aircraft availability in any given day
Speaker 2: by twenty five percent. Predictive maintenance at DOW here in
Speaker 2: you know steam cracking units associated with polyethylene production. Okay,
Speaker 2: we can reduce unplanned downtime by twenty percent.
Speaker 5: Hey, that's worth hundreds of millions of years to DOW.
Speaker 2: So these these are these are you know, two very
Speaker 2: real applications with you know, substantial economic return. I would
Speaker 2: say the application that I that I SAYD at the
Speaker 2: United States Air Force might be the largest enterprise application
Speaker 2: on Earth. Shell Shell is realizing, you know, two billion
Speaker 2: dollars an economic benefit a year from what they call
Speaker 2: shell AI, which is C three I combined with with azure.
Speaker 2: So the returns are substantial. This is no drill, This
Speaker 2: is not higher This is very real.
Speaker 4: What is the risk? Very real?
Speaker 3: We hype p the efficiencies of AI, We hype up
Speaker 3: the market valuations. We also sometimes in the media like
Speaker 3: to hype up the risks. What do you take to
Speaker 3: the risks and regulatory respect to that.
Speaker 2: The risks associated with AR are daunting, and I would
Speaker 2: be afraid. Uh, you know, we need to be very
Speaker 2: concerned about personal privacy. I believe that, you know, personal
Speaker 2: privacy is a fundamental human right, Okay, and AI that
Speaker 2: threatens that we will you know, so I think privacy
Speaker 2: issues will these you we're seeing, uh you know social media,
Speaker 2: the AI and social media being used to you know,
Speaker 2: it's a public health hazard. Think about you know, depressions, suicide,
Speaker 2: body imag issues in young women. These technologies are being
Speaker 2: used to interfere in democratic processes there. So you know,
Speaker 2: the risks associated where they are very real and we
Speaker 2: need to be very concerned and we need to plan
Speaker 2: for them, and we need to avoid them.
Speaker 3: Well keep coming with some of the ideas and the
Speaker 3: solutions to planning for it.
Speaker 4: Tom Siebel, thanks for trulling.
Speaker 3: Has three your numbers today C three AI CEO. Then
Speaker 3: it is time now for talking tech. First up, the
Speaker 3: Biden administration so to host an event on competition in AI.
Speaker 3: But the big tech names in the industry well haven't
Speaker 3: been invited. In Vidia, Alphabet, Amazon, Meta, Microsoft all are
Speaker 3: absent from the panel. Instead, the workshop is set to
Speaker 3: bring together top VC firms along within forces regulators from
Speaker 3: the US, UK and EU. This is according to the
Speaker 3: US Assistant Attorney General for Antitrust. The speaker Liist was
Speaker 3: intentional plus OpenAI says the impact of generative AI is
Speaker 3: just beginning from an economic perspective. Speaking at a conference
Speaker 3: in Singapore, the company's CTO, that's Mira Murati, said its
Speaker 3: latest Chatchipt four model is becoming more intuitive and spurring
Speaker 3: more adoption, saying quote, over a very short amount of time,
Speaker 3: these aisystems have entered the workforce as collaborators, and Donald
Speaker 3: Trump and Elon Musk will have talked about a possible
Speaker 3: advisory role for the Tesla CEO if Trump wins the election.
Speaker 3: That's according to the Wall Street Journal. The two are
Speaker 3: said to have been discussed ways to give Musk formal
Speaker 3: input and for policies related to border security and the economy.
Speaker 4: However, the role hasn't been fully developed.
Speaker 3: And it might not happen. Well, that would be yet
Speaker 3: another hat for Elon Musk. Meanwhile, Tesla as a company
Speaker 3: is kind of in a bit of disarray. Layoffs are mounting,
Speaker 3: morale is shattered, stock is cratering, and sales are anemic,
Speaker 3: and some investors say it's got a distracted leader at
Speaker 3: the helm since Elon Musk runs five other companies, so
Speaker 3: is everything still.
Speaker 4: Right in EON's universe?
Speaker 3: It's bringing Bloomberg's Kurt Wagner for more on the big take,
Speaker 3: where you articulate what the universe is of Eno Musk
Speaker 3: and who actually helps run it. Can you give us
Speaker 3: a sense of why you decided to do this deep dive?
Speaker 5: Of course?
Speaker 7: Yeah.
Speaker 9: I mean, as you mentioned, Elon is running six companies
Speaker 9: at once, right, But there's only so much time in
Speaker 9: the day, and so we started asking ourselves, well, who
Speaker 9: are the people that are actually, you know, carrying out
Speaker 9: the day in, day out tasks of running these businesses?
Speaker 9: And we realize it's not always very clear, right. It's
Speaker 9: a tough reporting challenge to sort of figure out who
Speaker 9: the power players are in Elon's orbit. So we spent
Speaker 9: a couple of months did a lot of reporting. We
Speaker 9: tried to map this out into what we called sort
Speaker 9: of a solar system with Elon is the sun at
Speaker 9: the center and everyone else sort of rotating around him.
Speaker 9: I think it's a slight nod to you know, SpaceX
Speaker 9: and his ambitions in space, but also it's just the
Speaker 9: reality like if you work for Elon, you're kind of
Speaker 9: at his beck and call and you orbit him, and
Speaker 9: he is the power source there. And so we tried
Speaker 9: to map this out for people so they get a
Speaker 9: sense for who the people are behind Elon Musk that
Speaker 9: are doing the day in and day out past.
Speaker 3: Can you articulate a few I mean actually quite diverse
Speaker 3: calstic characters, a couple of women in there. When you
Speaker 3: think of SpaceX and Twitter now X.
Speaker 9: Yeah, I mean each of the companies specifically has their
Speaker 9: you know, senior leaders that are running so Gwen Shotwell
Speaker 9: for example, at SpaceX, I feel like if you look
Speaker 9: though at the advisors that he has who tend to
Speaker 9: show up at various companies you come to. You think
Speaker 9: of people like Alex Spiro, his lawyer, right, he showed
Speaker 9: up repeatedly at all of these different companies. You think
Speaker 9: of Jared Birchell, his business manager, also shows up repeatedly.
Speaker 9: There's other advisors, you know, people who show up on
Speaker 9: various or multiple boards, friends like David Sachs, who sort
Speaker 9: of advise him but don't necessarily have a formal role
Speaker 9: at these companies. So the orbit here or the solar
Speaker 9: system here is supposed to sort of show all these
Speaker 9: various relationships and how they intertwine and intertwined they do.
Speaker 9: I think that's what's super interesting here is that these
Speaker 9: things are all coming together.
Speaker 3: On any given day, They're all coming together while he's
Speaker 3: still fighting for his fifty six billion dollar pay package.
Speaker 3: He wants more of a stake, a controlling stake in Tesla.
Speaker 3: He's got shareholders pushing back thinking he is distracted, is
Speaker 3: he or is he delegating?
Speaker 5: Yep.
Speaker 9: I don't know how you could not be distracted when
Speaker 9: you have six different companies that you're running at once.
Speaker 9: And it's such a key part of this whole thing
Speaker 9: because all of his wealth is tied up in Tesla. Right,
Speaker 9: So if he is distracted at Tesla, if Tesla's not performing, well,
Speaker 9: there's a trickle down effect to all these other businesses
Speaker 9: because this is where he gets his wealth, it's where
Speaker 9: he gets his power. And as a result, you know
Speaker 9: Xai or x or boring company, they may suffer. So
Speaker 9: I think that's why this Tesla pay package is so important.
Speaker 3: Co Wagner, great breakdown, Thank you, Welcome back to Bluemerg
Speaker 3: Technology and Parline hid in New York.
Speaker 4: Let's get a quick check on these markets.
Speaker 3: Because a little bit of suppressed enthusiasm around the techtocks today.
Speaker 3: And now's that one hundred off by seven tenths of
Speaker 3: a percent. That's even as boring costs come down. Look
Speaker 3: at the seven basis point move we see on the
Speaker 3: tenure four point five four is where we trade. That's
Speaker 3: more to do with the macro picture GDP slowing in
Speaker 3: the previous quarter. But so tool inflationary pressures, does that
Speaker 3: mean the Fed can indeed cut so we come down
Speaker 3: in those boring costs. But that's that also under pressure
Speaker 3: for some microdata some earnings. Bitcoin currently up by one
Speaker 3: point five percent, so a little bit more new music
Speaker 3: to the upside. Sixty eight thousand is where we go
Speaker 3: for Crypto. We'll dig into that a little bit more
Speaker 3: later in the show. Move on, look at some of
Speaker 3: the individual move though, and this is perhaps what's tugging
Speaker 3: down on the overall WE sentiment. When it comes to
Speaker 3: tech stocks down twenty one percent for salesforce. This is
Speaker 3: an extraordinary move, largely because we're seeing shares slide the
Speaker 3: most in almost two decades, because sales is the slowest
Speaker 3: in almost two decades, slowest quarterly sales growth.
Speaker 4: In its history.
Speaker 3: In fact, this is all renewing some anxiety that really
Speaker 3: the generation of artificial intelligence is not going to generate
Speaker 3: revenue for this particular business anytime soon. We're seeing youipath
Speaker 3: up down by thirty five percent. Smaller business, yes, but
Speaker 3: still a focus on automation software and what generative AI
Speaker 3: in the enterprise competitors means for them, and also the
Speaker 3: fact that they're seeing their CEO, Rob Enslin taking a
Speaker 3: surprise departure. I'm looking at Dell Technologies of by six percent.
Speaker 3: Remember this has been a stock Tho's had a record
Speaker 3: winning streak up to this day, six straight days of
Speaker 3: gains where at near record highs Dell got its earnings
Speaker 3: after the bell. What will the AIPC mean for Dell?
Speaker 3: What will of course, continued server demand mean for Dell.
Speaker 3: Many think good news, but it is trading at a
Speaker 3: pretty high valuation. Let's so move across to another particular
Speaker 3: corporate story and a.
Speaker 4: Theme that we've been seeing.
Speaker 3: Satellite to phone service provider AST Space Mobile announced a
Speaker 3: partnership with Verizon this week, adding to the company's recent
Speaker 3: deal with AT and T.
Speaker 4: As you'll see, shares have surged so.
Speaker 3: Far this month, and it's all about the news of
Speaker 3: one hundred percent coverage coming and the end of dend zones.
Speaker 4: Is it Beckoning joining us?
Speaker 3: It's the CEO A Well Avllen, thank you Abel for
Speaker 3: joining us.
Speaker 4: And that's what you're saying.
Speaker 3: You're saying with the deal, the partnership is being struck
Speaker 3: with Verizon and with AT and T you can offer
Speaker 3: one hundred percent coverage for satellite to mobile in the future.
Speaker 3: Why do you need their spectrum? What does it mean
Speaker 3: to have these partnerships?
Speaker 10: Well, I mean the spectrum is an essential part of
Speaker 10: the service. I mean AT and T Verison have premium
Speaker 10: inspectrum in the cover all United States. We bring the
Speaker 10: technology to make that respectum available for every phone that
Speaker 10: is in everybody's phone. And that's where this part ships
Speaker 10: make a lot of sense. Our plan is to eliminate
Speaker 10: that song in the United States. We of course, we
Speaker 10: don't do that alone. We do that with the two
Speaker 10: largest help us in this country and to enable connectivity
Speaker 10: for people, regardless of where they are and regardless of
Speaker 10: the fund that they had in their boocket.
Speaker 3: And in fact, you've got deals, partnerships and more than
Speaker 3: forty telecoms providers.
Speaker 4: This is a worldwide theme.
Speaker 3: We're sitting with you, but we immediately think of competition
Speaker 3: when it comes to SpaceX and Starlink.
Speaker 4: Can you give us.
Speaker 3: A discussion of how your offerings are different because Starling
Speaker 3: has gone with well T Mobile, or indeed T Mobile
Speaker 3: has gone with Starlink.
Speaker 10: Yeah, I mean the main differentiation is, first of all,
Speaker 10: we don't need special terminal, special devices to connect to
Speaker 10: the phone. And in the case where they had a
Speaker 10: service that may offer sous in similar we believe our
Speaker 10: service is the only one that offer broadband connectivity in
Speaker 10: a sustainable way. We only need ninety satellites. We have
Speaker 10: three three thousand, four hundred depending claims we had a
Speaker 10: large satellites or we're launching to LEO into low orbits.
Speaker 10: So our technology really differentiate us with everything else that
Speaker 10: is in the market, and this has been improven. We
Speaker 10: get constant support and overwhelming support by the wireless industry,
Speaker 10: and now the addition of Horiizon together with AT and
Speaker 10: T is actually a leave improof of that.
Speaker 3: Let's talk about low Earth orbit and the satellites you
Speaker 3: need to put there, because now you've got to get
Speaker 3: them up there, and in fact I think it's going
Speaker 3: to be using SpaceX to do so. But what does
Speaker 3: the pipeline look like for getting these launches going?
Speaker 6: Well?
Speaker 10: We had an immediate launch here this summer. We were
Speaker 10: launching the FIR five operational satellites to be used for
Speaker 10: our eminal partners but also for by our U government.
Speaker 10: So we are launching. We're launching this summer. We will
Speaker 10: continue to launch during twenty twenty five and twenty twenty six,
Speaker 10: but we start commercial services as soon as.
Speaker 5: We have these five up.
Speaker 3: I like the INSAE commercial services because the deal with
Speaker 3: the Verizon isn't yet a commercial partnership, it's strategic partnership.
Speaker 4: When does it become commercial.
Speaker 10: Well, the deal actually is a pre payment to use
Speaker 10: our service, So they are committed one hundred million dollars
Speaker 10: to use our service.
Speaker 6: That is.
Speaker 10: Thirty five million in an ode, sixty five million in
Speaker 10: pre payments to actually use of our service.
Speaker 5: We plan to.
Speaker 10: Enable Verizon on our under a fifty megahertz premium spectrum
Speaker 10: together with the a fifty megahert from AT and T
Speaker 10: premium spectrum to basically have both the two largest healecas
Speaker 10: in the United States to get access to our network
Speaker 10: as soon as.
Speaker 5: We've gone available.
Speaker 3: We said at the beginning that your share price is
Speaker 3: rocketed in the last month. You've gone from five hundred
Speaker 3: million dollar valuation to an excess of two billion dollars. Now,
Speaker 3: it's not as high as we've seen in previous years
Speaker 3: in twenty twenty, twenty twenty one, but what does that
Speaker 3: sort of volatility feel like when you've been in the
Speaker 3: game of space for more than two decades.
Speaker 10: Yes, I mean, listen, the opportunity that we have is very, very,
Speaker 10: very large. I mean the days a trillion a trillion
Speaker 10: dollar market growing faster than population. We had the fact
Speaker 10: that ninety percent of the air surface do not have
Speaker 10: cellular broadband, and we have five billion phones that get
Speaker 10: in and out of connectivity every day, so this is
Speaker 10: a massive market. We are just at the beginning. We're
Speaker 10: just kicking off here with initiating services, starting with the
Speaker 10: launch the launches of this summer. And yes, there have
Speaker 10: been so learning core by the market, learning for by
Speaker 10: the investors. But I think I think the industrial support
Speaker 10: and the ontake of our customers, which is basically the
Speaker 10: global operators and the leading operation in the globe.
Speaker 5: It talks by itself.
Speaker 3: Many focus on the digital divide, Verizon CEO being one
Speaker 3: of them in particular, when will we see an end
Speaker 3: to it? Do you think, how quickly can we get
Speaker 3: one hundred percent coverage for the world and access for
Speaker 3: everyone who's lucky enough to have a mobile phone and
Speaker 3: cell phone?
Speaker 10: No, absolutely, I think this is an area where we're
Speaker 10: hanced from Verizon, John from AT and T and myself
Speaker 10: which aair a common goal is eliminating death zones, and
Speaker 10: not only in the United States. We obviously been an
Speaker 10: American company, We're extremely focused here in the United States
Speaker 10: that remains to be a problem, but also globally and
Speaker 10: and actually a un Commissioner for broad Band Connectivity. We
Speaker 10: are committed to democratizing access to knowledge and information, and
Speaker 10: we will believe that this technology can make a huge
Speaker 10: dent on that. There is no reason why with today's technology,
Speaker 10: with today's advancement in launch capability, with today's investment on
Speaker 10: our type of satellites, there is no reason why people
Speaker 10: cannot get access to broadband Internet using five G anywhere,
Speaker 10: whatever they are.
Speaker 3: St CEO al Avelyn, thank you. We appreciate you coming
Speaker 3: on just amid all the deal flow. And while coming up,
Speaker 3: we're going to be joined by Arthur CEO Adam Winschel,
Speaker 3: the company's latest generator of AI research. Really pitting LLM
Speaker 3: versus lllman. While we're watching shares of Amazon, but not
Speaker 3: because of its AI focus, but because of its food focus.
Speaker 3: We're up by two point three percent for Just Eat Takeaway.
Speaker 3: Why because it's grub hub unit. Wow, Amazon's increasing a
Speaker 3: stake in it to as much as eighteen percent. They're
Speaker 3: expanding their partnership. We're gonna be able to get food
Speaker 3: delivery services actually within the Amazon app. Doing well for
Speaker 3: Just Eat Takeaway that just stopped trading over in Europe.
Speaker 4: This is Bluembog Technology.
Speaker 3: Arthur, the company that provides a firewall basically for large
Speaker 3: language models. It's just released the second edition of its
Speaker 3: Generative Assessment Project. It's research initiative which basically ranks the
Speaker 3: strengths and weaknesses of various LLM offerings from industry leaders
Speaker 3: like open Ai, Anthropic and Meta. I sprink it all
Speaker 3: down with urur Ceo, Adam Wenshew Adam. It's great to
Speaker 3: have you because benchmarking is really complicated, and often it
Speaker 3: feels like when open Ai comes out with its latest
Speaker 3: large language model, it says we're bettering this other rival
Speaker 3: at this and we're better at that.
Speaker 4: You feel like they're grading their own homework.
Speaker 3: How are you grading it from a benchmark perspective?
Speaker 11: Absolutely, And so we want to do is give people
Speaker 11: the tools so that they can actually create it with
Speaker 11: how well it does on what you actually want it
Speaker 11: to do. You know, if you wanted to answer customer
Speaker 11: service requests or help with your analysis financial analysis, like
Speaker 11: how well does it do it your particular task, and
Speaker 11: that a lot of times is completely a completely different
Speaker 11: number than the kind of industry benchmarks they get thrown
Speaker 11: around all over the place.
Speaker 4: And when you've done this particular report.
Speaker 3: One of the key findings seems to be doesn't need
Speaker 3: to be expensive. The cheaper offerings really good and really powerful.
Speaker 11: Absolutely, so when we first started really kind of measuring
Speaker 11: and assessing the quality of these, you know, even six
Speaker 11: months ago, there is a huge difference in their ability
Speaker 11: to even answer some basic questions. And now, you know,
Speaker 11: fast forward today, what we're finding is like all that,
Speaker 11: you know, there's so many open source and different commercial
Speaker 11: models that do a really good job of answering questions,
Speaker 11: and so now what you want is one that's really fast,
Speaker 11: really inexpensive, but also doesn't hallucinate a lot actually uses
Speaker 11: the data you give it and answers based on that.
Speaker 11: And and so that's a lot of what we focus
Speaker 11: on because that's what really business users care about, people
Speaker 11: who are trying to run these and enterprises and build
Speaker 11: applications on top of them.
Speaker 4: That was what was positive about all of this.
Speaker 3: Hallucinations across the board seem to be coming down. So
Speaker 3: basically where the model is making things up, getting it wrong,
Speaker 3: But who is coming up on top, who is benchmarking
Speaker 3: from your standards.
Speaker 11: Well, yeah, there's a lot of really great you know,
Speaker 11: new open source and commercial ones. But you know, an
Speaker 11: example is anthropics new haikup model, which is extremely an expensive,
Speaker 11: very quick, does a really good job of sticking to.
Speaker 8: The material you give it. So if you're feeding it
Speaker 8: with your.
Speaker 11: Corporate data through rag vector databases, it does a really
Speaker 11: good job of answering the question based on that data.
Speaker 8: And it's like lightning fast and very inexpensive.
Speaker 11: And so there's also a lot of new open source models,
Speaker 11: the new LAMA models, Coheres, command R models, they're all
Speaker 11: doing like extremely good jobs. And so you know what
Speaker 11: people are choosing on now is you know, really really
Speaker 11: these other things around how little does it hallucinate, how
Speaker 11: well does it kind of work for my business application?
Speaker 11: And that's what we help people measure and navigate.
Speaker 4: How are you measuring cost?
Speaker 3: Because there must be cost built in and all sorts
Speaker 3: of different layers as to whether you're affording the compute,
Speaker 3: whether the large language model provider is through its services
Speaker 3: giving you access to compute.
Speaker 11: Yeah, absolutely, So when you work with it, you know,
Speaker 11: someone like an open AI or Anthropic, they kind of
Speaker 11: abstract all that away and it just happens magically, and
Speaker 11: so you just pay one price when you're running open
Speaker 11: source models.
Speaker 8: There are some providers that will run.
Speaker 11: On so you can run them through, like AWS Officer
Speaker 11: or Bedrock service and hugging Face offers some services, but
Speaker 11: a lot of times what people want to be able
Speaker 11: to do is kind of run their own GPUs and
Speaker 11: run them there so that just because it gives them
Speaker 11: more control, it gives them better guarantees around data privacy.
Speaker 11: There's a lot of advantages and that comes with some complication,
Speaker 11: but it also comes with a lot of assurance about
Speaker 11: what's going on, and you can kind of guarantee where
Speaker 11: your data is going.
Speaker 3: Ultimately, your business is about making sure that companies can
Speaker 3: adopt large language models safely and ensure that they are
Speaker 3: making it.
Speaker 4: Best fit for their business. What are business is doing
Speaker 4: right now?
Speaker 3: I'm hearing a lot of data that actually they're pretty fearful.
Speaker 3: They're not perhaps adopting generator ais quickly as we all
Speaker 3: like to think they are.
Speaker 11: You know, there certainly are some, but we're seeing we
Speaker 11: have several customers who are large four to one hundred
Speaker 11: companies that are adopting them very aggressively. Now they are
Speaker 11: being cautious, like they're starting with.
Speaker 8: Internal use cases. Typically night well, like.
Speaker 11: Everything from just sort of generic copilots to answering technical
Speaker 11: product questions. If you're like, we have a large industrial
Speaker 11: equipment manufactur that is out you know, they have a
Speaker 11: bunch of field reps that are out there working with
Speaker 11: their customers, and they get very complicated questions, and their
Speaker 11: ability to answer those questions has just been transformed by
Speaker 11: generative AI, and so there's a lot of like use
Speaker 11: cases there. I think, you know what we're seeing right
Speaker 11: now is there's a real difference between the companies that
Speaker 11: just sort of announced, you know, made announcements about AI
Speaker 11: and all things are gonna do in AI to get
Speaker 11: the bump on their stock price and those that are
Speaker 11: actually like putting in the work to understand how do
Speaker 11: you create business value, like real world value from AI,
Speaker 11: because that takes work, and that's the kind of thing
Speaker 11: we help people measure your AI performance and then what
Speaker 11: kind of value are you creating?
Speaker 8: Economic benefit are you creating with that?
Speaker 3: And many have the anxiety that the economic benefit comes
Speaker 3: at the cost of jobs, But actually I would have
Speaker 3: thought a lot of the companies that are adopting quickly
Speaker 3: have got to get in their own technical talent how
Speaker 3: is that going for them?
Speaker 11: Yeah, I mean there's I think that's exactly right. Like,
Speaker 11: we've seen no evidence that people are losing their jobs
Speaker 11: for this. I think what we have seen is making
Speaker 11: people more efficient and so in like large functions where
Speaker 11: you might have to hire five hundred people a year,
Speaker 11: instead maybe you can get a with hiring three or
Speaker 11: four hundred because you're making them that much more efficient.
Speaker 11: But we've yet to see any job losses, And I
Speaker 11: think the people who are benefiting are the ones who
Speaker 11: are really good at incorporating these kind of copilots and
Speaker 11: other assist of tools built on gender and AI into
Speaker 11: their workflows. Like you know, we use it, our our
Speaker 11: developers use it. We use it in a number of ways.
Speaker 11: I use it all the time to help write, you know,
Speaker 11: your end reviews and different things like that. So there's
Speaker 11: just all sorts of ways you can incorporate it into
Speaker 11: your day to day to make yourself faster.
Speaker 3: All about being a first adopter on these moments off
Speaker 3: a CEO Adam wenshaw I said, dropping in.
Speaker 9: ETH is truly one of the foundational pieces of the
Speaker 9: entire ecosystem.
Speaker 12: I'm not a fan of any other cryptocurrency outside of Bitcoin.
Speaker 13: Eth is at the forefront of the tokenization movement that
Speaker 13: it's going to really define the next few decades of
Speaker 13: traditional finance.
Speaker 14: You have the biggest developer community, you have the biggest security,
Speaker 14: most DeFi protocols.
Speaker 12: Bitcoin is the only money within the cryptocurrency space. It's
Speaker 12: designed and treated as a monetary asset. So then what
Speaker 12: do I think Ethereum is. I think ethereum is a technology.
Speaker 13: If Bitcoin is digital gold, eth is Apple. It's building
Speaker 13: the app store of finance.
Speaker 14: You can have multiple companies making the same product, but
Speaker 14: if one company is very reliable, Ethereum has been one
Speaker 14: of the first ones.
Speaker 13: Eth is going to ride the codetails of all the
Speaker 13: access that Bitcoin is created.
Speaker 4: Without question, it's one of the most active chains in
Speaker 4: a space. It is more about the trust.
Speaker 13: This is an asset that people want to own.
Speaker 12: I think that there's a lot the market has to
Speaker 12: sort out as to what it actually is and how
Speaker 12: to value it.
Speaker 15: I myself am very bullish ETH and the entire ecosystem.
Speaker 3: Just a few of our guests weighing in on the
Speaker 3: Ether etf as we await a decision from the SEC
Speaker 3: around us ets investing directly in, of course, the Ethereum
Speaker 3: overall protocol. Let's discuss with Jovan Putchra, founding and managing
Speaker 3: partner of Future Perfect Ventures. It's an early stage VC
Speaker 3: fun Basically you focus on decentralized technologies, you focus on
Speaker 3: crypto assets on AI or more broadly on the decentralized space.
Speaker 3: But I want to get into ultimately what you think
Speaker 3: this institutionalization of ETH will really mean, because many feel, look,
Speaker 3: it won't be quite as popular as the Bitcoin ETF.
Speaker 15: Well, it's great to be with you again, and I've
Speaker 15: loved seeing those clips of my colleagues and friends discussing
Speaker 15: the developments we've seen in the space. I think these
Speaker 15: ETF we had the Bitcoin ETF approved earlier this year,
Speaker 15: we had the ETF approved last week. Believe that we're
Speaker 15: going to show or allow retail to have a lot
Speaker 15: more access to these crypto assets. And we're going to
Speaker 15: see many more of these ETFs being approved. And it's retail,
Speaker 15: it's institutions that don't want to custody their own assets.
Speaker 15: They want exposure to the upside these new technology using
Speaker 15: crypto assets can provide. UH, but it's very clunky to
Speaker 15: go out and buy eth or or bitcoin and and
Speaker 15: then learn to trade it. And so these atfs provide
Speaker 15: an alternative for billions of people around the world.
Speaker 3: Many are going to feel that the issue they have
Speaker 3: with the ATHTF is they're not going to be staking,
Speaker 3: They're not going to be sort of getting money.
Speaker 4: And rewards back.
Speaker 3: If your fidelity who's running the ETF, is there in
Speaker 3: that way going to cause any liquidity issues. Is there
Speaker 3: any sort of a lack of ultimate demand coming because
Speaker 3: people do want to actually directly own ethereum and then
Speaker 3: be able to stake it themselves.
Speaker 15: Yeah, So I think this was the confession, you know,
Speaker 15: to get approval. A number of the applicants for the
Speaker 15: ATF took out this taking part of it. I believe
Speaker 15: that there's enough upside in the core asset, and uh,
Speaker 15: you know, there's so many developers. This is still one
Speaker 15: of the largest chains out there. It's been around the longest.
Speaker 15: There are tons of decentralized applications being built. Their Layer
Speaker 15: two is being built on ethereum to make it more scalable.
Speaker 15: So while staking can provide some extra yield, I don't
Speaker 15: think it's necessary to be able to be able to
Speaker 15: realize the upside of the underlying asset.
Speaker 3: I mean, Jaack, you first, what launched your first decentralized
Speaker 3: focused fund back in twenty fourteen. This must feel very
Speaker 3: strange for suddenly the government to almost pivot on a
Speaker 3: dime and be getting more interested in crypto and eth
Speaker 3: What is this because it's becoming politicized in some way
Speaker 3: ahead of the election.
Speaker 15: I think there's no doubt that it's being politicized. I mean,
Speaker 15: we had Donald Trump come out and say that he
Speaker 15: would support the crypto industry. This administration, the current administration
Speaker 15: has been very anti crypto, and we start we started
Speaker 15: seeing that, you know last year when they shut down
Speaker 15: Signature Bank. They have made it very difficult to provide
Speaker 15: clarity around these assets. And so you know, I think
Speaker 15: we do we will hear more about crypto during this election.
Speaker 15: And we're also seeing Congress really start to push through
Speaker 15: legislation that will provide the clarity of the industry has
Speaker 15: been looking for. Last week, FIT twenty one was passed
Speaker 15: by the House and it was pretty bipartisan. I mean,
Speaker 15: there were definitely more Republicans and Democrats that voted for it.
Speaker 15: But this bill will provide clarity on which tokens will
Speaker 15: be under SEC jurisdiction, which ones would be under a
Speaker 15: c FTC jurisdiction. And that's been a big sticking point
Speaker 15: of not knowing what's a security and what's a commodity.
Speaker 15: And then there's also all sorts of other regulations that
Speaker 15: are putting it put in there and customer protection and
Speaker 15: so the industry can move forward. This goes to the
Speaker 15: Senate next and we'll see what happens. But Biden has
Speaker 15: basically said that he's not going to veto it, which
Speaker 15: is a positive sign.
Speaker 4: Jilac.
Speaker 3: Great to have an expertise has been built over many years.
Speaker 3: And I let you get back to the consensus event
Speaker 3: over in Austin where I'm sure everyone will be discussing
Speaker 3: some of the politicization of your area.
Speaker 4: J Lac.
Speaker 3: Joe when Futro, we thank you founder and managing partner
Speaker 3: of Future Perfect Ventures.
Speaker 4: Meanwhile, that does.
Speaker 3: It for this addition of Bluebog technology. You do not
Speaker 3: want to forget to check out our podcast. You can
Speaker 3: go find it on the terminal, but if you're on
Speaker 3: Apple and Spotify on iHeart there it is.
Speaker 4: Come relive it with us. This is blue meg technology.