Speaker 1: From Mahart where Innovation, Money and Power Collie in Silicon
Speaker 1: Vallet Nbon.
Speaker 2: This is Bloomberg Technology with Caroline Hide.
Speaker 3: And Ed Ludlow Imed Ludlow in San Francisco. Caroline Hides
Speaker 3: off this week. This is Bloomberg Technology coming up on
Speaker 3: the program. Full coverage from the World Economic Forum. As
Speaker 3: tech heavyweights continue to descend on Davos, we hear from
Speaker 3: the CEOs of Cisco.
Speaker 4: Qualcom and many more.
Speaker 3: Plus the SEC and Coinbase face off in court today
Speaker 3: over the regulator's crypto authority after.
Speaker 4: Suing the exchange last July.
Speaker 3: Will bring you the latest from the trial and AI
Speaker 3: startup Amthropic is building out technology for its chatbot to
Speaker 3: analyze images as it seeks.
Speaker 4: To catch up with big competitors.
Speaker 3: We'll bring you the details and so much more throughout
Speaker 3: the hour. Let's focus on the technology sector. In financial markets,
Speaker 3: the story of the week continues to be FED speak,
Speaker 3: and what we're seeing this Wednesday morning is traders pair
Speaker 3: back their expectations for FED rate cuts in twenty twenty four.
Speaker 3: How that manifests itself is a lot of red on
Speaker 3: the screen behind me. Some underperformance in the technology sector
Speaker 3: and as that one hundred is kind of my go
Speaker 3: to right because of the number of technology or concentration
Speaker 3: of technology shares. But look at the Golden Dragon China
Speaker 3: Index US listed or ADRs of Chinese technology companies underperforming
Speaker 3: the semiconductor space, or socks also underperforming, and Bitcoin kind
Speaker 3: of caught up in this risk of mentality, pulling back
Speaker 3: back towards forty two thousand US dollars per token.
Speaker 4: There's a lot in the news cycle as well.
Speaker 3: Tesla continues to be a driver to the downside in
Speaker 3: major indices. That is a stock that is down by
Speaker 3: two point seven percent. Price cuts on Model Y in Europe, Netherlands, Grants, Germany,
Speaker 3: other markets mid single digits, pulling back on the price
Speaker 3: of Model Y, which they just confirmed in the last
Speaker 3: hour or so. Apple under pressure down a percentage point,
Speaker 3: a lot about their failure in court to appeal the
Speaker 3: original quarter of appeal's outstore decision, but data out overnight
Speaker 3: Visa VI, their position against sam Sum in the global market.
Speaker 3: We're going to go to Bloombos Mark German on that.
Speaker 3: And then Alphabet continuing to be under pressure. The story
Speaker 3: with Alphabet Pan Google has been one of layoffs now
Speaker 3: here's what's happening today. The SEC and Coinbase are swearing
Speaker 3: off in court, as the crypto exchange argues the regulator
Speaker 3: is overstepping its authority. After the regulator sued the company
Speaker 3: in June of twenty twenty three for operating as quote,
Speaker 3: an illegal securities exchange. Bloomberg Shnali Bassek sat down with
Speaker 3: coinbas CEO Brian Armstrong to discuss the legal battle ahead
Speaker 3: at the end of last year.
Speaker 4: Listen to this.
Speaker 5: We work with regulators all over the world. Are the
Speaker 5: regulars here in the US. I think I'm a reasonable
Speaker 5: person to get along with. But unfortunately the SEC under
Speaker 5: this chair has taken a regulation by enforcement approach instead
Speaker 5: of creating a clear rule book in the US that
Speaker 5: can allow this industry to be built in a safe
Speaker 5: and trusted way.
Speaker 3: Joining US now is Bloomberg Shinali basegad in New York.
Speaker 4: Can look.
Speaker 3: It's an interesting Wednesday morning. I think there's a lot
Speaker 3: of eyeballs on this, a lot of anticipation on the
Speaker 3: battle between coinbase and SEC.
Speaker 4: Give me the basics of the dispute.
Speaker 6: The base six of the dispute was that you had
Speaker 6: the SEC in the middle of last year sou Coinbase
Speaker 6: saying that they had operated as an unregistered exchange and broker,
Speaker 6: and they also targeted more than a dozen assets listed
Speaker 6: on the exchange, saying that they were listed as unregistered securities.
Speaker 6: So you had the fight back from Coinbase saying that
Speaker 6: they should be dismissing this. They foul a motion to dismiss,
Speaker 6: and we are going through the process. Now, this could
Speaker 6: be a very long process because Coinbase is really fighting
Speaker 6: a lot of definitions here, particularly the idea of all
Speaker 6: of these assets being on listed securities and the meaning
Speaker 6: of an investment contract versus investment on its own. Now,
Speaker 6: remember a lot of this lawsuit really goes around the
Speaker 6: idea here of the SEC overstepping its reach as mandated
Speaker 6: by the law. Now we'll see how this goes on,
Speaker 6: but there is a chance that this could take weeks,
Speaker 6: even months. It could go well into the next year
Speaker 6: or so, depending on how the judges rule. This is
Speaker 6: a case that could go into discovery. But certainly the
Speaker 6: reason it's so highly watched by the industry, not just
Speaker 6: investors of coinbase, is because it does fundamentally get down
Speaker 6: to the heart of the SEC's jurisdiction of the crypto industry,
Speaker 6: as well as what is and isn't a security when
Speaker 6: it comes to all of these tokens that are listed
Speaker 6: on these exchanges.
Speaker 3: All right, BLOOMBOGTIONALI basseg that is one you will be
Speaker 3: watching closely throughout when and I'm sure we'll discuss twenty
Speaker 3: four hours from now, Thank you very much. We've got
Speaker 3: to head over to Davos and what's happening in Switzerland.
Speaker 4: Cisco CEO Chuck Robin.
Speaker 3: Sat down with Bloomberg's Jonathan Ferrow to discuss Cisco's transition
Speaker 3: to being a software company amid an AI boom.
Speaker 4: Listen to this.
Speaker 7: There's still more to do. There's still more software assets
Speaker 7: we can build organically, probably some men organic stuff we
Speaker 7: can do.
Speaker 4: But at the same.
Speaker 7: Time, with the AI explosion, we're a significant recipient of
Speaker 7: the infrastructure benefit underneath the GPUs in both the web
Speaker 7: scale as well as ultimately in the enterprise. So our
Speaker 7: hardware business, which in some cases has subscriptions associated with
Speaker 7: and some cases do not, we think that both of
Speaker 7: them can grow over the next few years.
Speaker 8: This is a tough question to answer, but do you
Speaker 8: think investors have fully internalized your view on where things
Speaker 8: are going and your message.
Speaker 7: I think they've internalized the message. I think they're just
Speaker 7: looking for. One of the things that we've talked about
Speaker 7: is that this transition to software should give us more
Speaker 7: predictability and less volatility. And we've seen that come into play,
Speaker 7: but we still probably have a little bit too much.
Speaker 7: And so we've been rewarded for what we've accomplished, and
Speaker 7: I think as we continue to do that, we continue
Speaker 7: to deliver, you'll see that in the future.
Speaker 8: You know, from bankre for a couple of days, everyone
Speaker 8: wants to be a part of the AI story. What
Speaker 8: surprised us, I speak for myself. What surprised me last
Speaker 8: year is how quickly it became real. It wasn't just
Speaker 8: a story that companies were selling. It was something they
Speaker 8: were monetizing. And the growth was exponential in some cases,
Speaker 8: and VideA a great example of that. Can you walk
Speaker 8: us through on way you're seeing actual, real tangible growth
Speaker 8: right now off the back of what's developing.
Speaker 7: Yeah, I've actually told my team you're not allowed to
Speaker 7: espouse about AI unless you follow it with a tangible
Speaker 7: way that we're implementing whatever you were talking about, because
Speaker 7: there's so much noise in the system. Look, I think
Speaker 7: if we're building the infrastructure that's going to support underpinning
Speaker 7: all the AI networks. So that's happening today. We're running
Speaker 7: pilots right now with webscale players. We're working on We're
Speaker 7: working on a lot of design around future integrated stacks
Speaker 7: that we're going to take to the enterprise to help
Speaker 7: them do it. Secondly, we're looking at how we can
Speaker 7: deliver a better customer experience for our customers by leveraging
Speaker 7: jen Ai, which everybody, every company is or should be doing.
Speaker 7: We're building security assistance as an example, to help customers
Speaker 7: navigate all the security tools you have and actually make
Speaker 7: sense of a lot of it more rapidly. We're doing
Speaker 7: the same in collaboration. We're transcribing meetings and so there's
Speaker 7: a lot of stuff that's going on right now. But
Speaker 7: I do think some of the greatest applications we have
Speaker 7: no idea what they are yet.
Speaker 3: That was Cisco CEO Chuck Robins add in a snowy Davos. Meanwhile,
Speaker 3: another story we're tracking computing, quantum computing create a cyber
Speaker 3: security armageddon is the question. The answer yes, According to
Speaker 3: one executive from IBM. Quantum computers, which accelerate processing power
Speaker 3: by performing calculations in parallel rather than sequentially, will make
Speaker 3: existing encryption systems obsolete. Speaking in Davos, IBM's general manager
Speaker 3: for EMEA sees the quantum era coming by twenty thirty,
Speaker 3: so a little weight on an exciting nascent technology, and
Speaker 3: they're coming up here on the program, we're going to
Speaker 3: talk about the state of the global supply chain amid
Speaker 3: the crisis and what's happening in the Red Sea with
Speaker 3: Core Kose, chief industry officer at Everstream Analytics.
Speaker 9: You can't predict how long this will last, but even
Speaker 9: if it lasts a long time, I think you'll see
Speaker 9: that the ocean market kind of stabilized and gets to
Speaker 9: a relatively normal pricing environment versus long term historical averages.
Speaker 9: Of course, it'll be higher than it was going to
Speaker 9: be if this hadn't happened, but I think the world
Speaker 9: will recover.
Speaker 3: You cannot predict how long the impact will last, but
Speaker 3: we're doing everything we can on Bloomberg technology to track
Speaker 3: that impact in real time. That was Ryan Pederson of
Speaker 3: Flexport with us the other day with his outlook for
Speaker 3: the supply chain impact amid the Red Sea crisis. Earlier
Speaker 3: today we heard from the CEO of MASK who says
Speaker 3: these events will hamper transit for a few months.
Speaker 4: Now.
Speaker 3: Joining us now is Core Kose, chief industry officer at
Speaker 3: Everstream Analytics, a leading supply chain insights and risk analytics company.
Speaker 3: And you also have the latest data. The latest is
Speaker 3: that around two hundred billion dollars worth of goods or
Speaker 3: volume of goods have been diverted to new routes because
Speaker 3: of the Red Sea.
Speaker 4: Just explain that that data and that math to us.
Speaker 10: Yeah, absolutely, thank you for having me yet today.
Speaker 11: So when we're looking at the current shipping decisions, a
Speaker 11: lot of companies have decided to take the longer route.
Speaker 11: Until that decision was made, of course, some of it
Speaker 11: was halted before going the longer route. So the amount
Speaker 11: that volume of trade that has been delayed not stop
Speaker 11: necessarily at around two hundred billion dollars. Now, compare that
Speaker 11: to the traffic jam at the Panama Canal that was
Speaker 11: around two hundred and seventy billion dollars as of the
Speaker 11: latest data, and compared to the South China Sea trade
Speaker 11: that we're looking at the yearly volume of five trillion
Speaker 11: to just give you a little bit of perspective, there
Speaker 11: is somewhat of a traffic gem, but not necessarily a
Speaker 11: chalk point at this current time for economies around the globe.
Speaker 3: Yeah, I spoke to a source at Tesla at the
Speaker 3: end of last week and the way that the source
Speaker 3: explained it to me was that Tesla had to divert
Speaker 3: ships that were carrying components destined for its Berlin plants.
Speaker 3: But it's not that those components won't get there at all,
Speaker 3: they're just going to take longer to get there. And
Speaker 3: you would have seen the reports, including from Bloomberg that
Speaker 3: as a result, they're going to have some downtime at
Speaker 3: that plant to make up for the shortfall and product.
Speaker 4: But there's also a cost.
Speaker 3: Consideration in how much a technology company has to pay
Speaker 3: to move those goods. What are you saying on that side, So.
Speaker 11: We're looking at, of course a cost increase from the
Speaker 11: perspective of the logistics burden. But in comparison and maybe counterintuitive,
Speaker 11: the current route through the Sewers Canal, with the increased
Speaker 11: rates and insurance and also the cost of the canal,
Speaker 11: is actually more expensive than the longer route at the
Speaker 11: same time of course, we're looking at a two weeks
Speaker 11: longer period of transit and given supply chains operating highly efficiently,
Speaker 11: especially in automotive for instance, where after a period of normalization,
Speaker 11: cost management has taken a priority. In the overall management,
Speaker 11: we're looking at just in time environments being re established.
Speaker 11: So a two weeks period of time is actually the
Speaker 11: underlying factor for some of those production closures. At Suzuki
Speaker 11: Volvo it's only a couple days, so they managed it
Speaker 11: quite efficiently. In that Volkswagen has not announced any of it,
Speaker 11: and Tesla has announced around two weeks off a production stuff.
Speaker 11: So we can also look at how those inventry management
Speaker 11: systems are established. Back to pre pandemic KPIs.
Speaker 3: Okay, Corey KSEEV everystream analytics with the real time data
Speaker 3: impact of what's happening in the Red Sea.
Speaker 4: Thank you. Let's head back to Dabos.
Speaker 3: Christiano Ramon quowcom CEO, spoke with Bloombergs, Jonathan Ferrer and
Speaker 3: A Marie Horden about business in another key market, China.
Speaker 1: Our business actually with China actually increase as we diversify,
Speaker 1: you know, our company not only into phones but into
Speaker 1: PCs and cars and industrial we expanded our relationships with China.
Speaker 1: Here's my simple answer. I think to that question, any
Speaker 1: company that has a leading technology product and is a
Speaker 1: product that becomes very important for the digital transformation of
Speaker 1: many industries such as automotive and others, you're going to
Speaker 1: have a big business and channel. It's just a function
Speaker 1: of I think we have been so far in a
Speaker 1: stable place. We have to monitor the situation like every
Speaker 1: other company, and you know, I will continue to believe
Speaker 1: and that's what I had said. At the end of
Speaker 1: the day, strong commercial relationships between American enterprises and our
Speaker 1: Chinese counterparts will be one of the things that could
Speaker 1: bring stability to the relationship.
Speaker 12: Does that monitoring get more challenging if you were to
Speaker 12: see a former President Trump went back to the White
Speaker 12: House next year.
Speaker 1: Look, we're just focused on our technology and we want
Speaker 1: to have markets that we can sell our technology. I
Speaker 1: think at the end of the day, one important thing
Speaker 1: to understand is certain certain technologies are globally interconnected. So
Speaker 1: you're going to have customers in different locations. You have
Speaker 1: customers in Europe and Japan, they will have a business
Speaker 1: in China as well, And you want to be a
Speaker 1: global supplier to them.
Speaker 8: I can see the cull calls saying, just round a corner.
Speaker 8: Very happy with that response that you didn't take to
Speaker 8: buy and talk about the form of President Christna. I
Speaker 8: want to tell about the direction of traveling the global
Speaker 8: economy for chip maker, just for the industry. Do you
Speaker 8: think we're close to the point where they have to
Speaker 8: pick a country, have to choose a side. We're either
Speaker 8: going to supply China or we're supplying Europe in America.
Speaker 8: How close are we to that moment?
Speaker 1: Look, I don't think we are right now at this
Speaker 1: point in the industries that we serve, and it's one
Speaker 1: of those things that, yeah, if it changes, I think
Speaker 1: companies have to adapt. We have seen that some industries
Speaker 1: had to face that.
Speaker 6: You have some.
Speaker 1: Industries that that's kind of the reality for different reasons,
Speaker 1: whether it's a cloud company or social media company at
Speaker 1: et cetera. We have been not at this space. So
Speaker 1: it's something that we're going to have to worry about
Speaker 1: in in the future.
Speaker 13: What industry do you think is going to be the
Speaker 13: biggest area of growth for you?
Speaker 1: We are very pleased what's happening with automotive. We're now
Speaker 1: working with virtually every car company. The car is becoming
Speaker 1: a new computing space, and we are jobs to provide
Speaker 1: the digital part sometimes to go alongside electrification. That's an
Speaker 1: exciting it's going to build revenue for welcome over time.
Speaker 1: The other one that was really happy about it.
Speaker 4: And it's new to us.
Speaker 1: We're entering the PC space. We just build now in
Speaker 1: the fastest processor for any laptop, and we think that
Speaker 1: could be a great opportunity for us.
Speaker 3: Call com CEO Cristiano I'm on earlier and another key
Speaker 3: conversation from Davos, and let's stay in Davos. The looming
Speaker 3: presidential election in the US this year will face risks
Speaker 3: with the rise of artificial intelligence. Leaders in AI, including
Speaker 3: open Ais, Sam Outman, and Microsoft founder Bill Gates wade
Speaker 3: in this week on the matter at Davos, and all
Speaker 3: said they took the threat of artificial intelligence on elections seriously,
Speaker 3: but there was a split in whether they thought a
Speaker 3: major disruption was likely. We'll keep tracking that one now
Speaker 3: coming up here on the program. We stick with AI
Speaker 3: as in thropic. It's coming up with new tools to
Speaker 3: its own chat or Claude. It's something a little bit
Speaker 3: more visual. We'll discuss that next this is Bloomberg Technology. Okay,
Speaker 3: it's time for talking tech and first up in the news,
Speaker 3: A federal appeals court denied the latest challenge from x
Speaker 3: to a special council demand for data from Donald Trump's
Speaker 3: Twitter or x account. The non disclosure order is received
Speaker 3: as part of a search warrant for a criminal investigation
Speaker 3: into Trump's attempt to overturn the twenty twenty election. Plus
Speaker 3: OpenAI is now working with the Pentagon on a number
Speaker 3: of projects, including cybersecurity capabilities and veteran projects. Departing from
Speaker 3: the startups earlier ban on providing its AI to militaries,
Speaker 3: and a new initiative will evaluate and certify AI products
Speaker 3: as copyright compliant. The stamp of approval is conducted by
Speaker 3: the nonprofit Fairly Trained, which was founded by the former
Speaker 3: vice president of Audio for Stability AI and in the
Speaker 3: world of AI startups. Anthropic is working on a feature
Speaker 3: that would give its chatbot Claud, the ability to analyze images.
Speaker 3: This is according to unpublished wording contained in the code
Speaker 3: of the company's website. This tool could widen the products
Speaker 3: appeal to users and help the company catch up with
Speaker 3: larger competitors. Let's break it all down with the best
Speaker 3: person possible Boom Both.
Speaker 4: Rachel metz Ai, Reporter.
Speaker 3: This is interesting because I hear about Anthropic all the
Speaker 3: time as the kind of LLM and chatbot number two
Speaker 3: behind open Ai, a big competitor. But this takes it
Speaker 3: from text into the image domain.
Speaker 4: What did you learn?
Speaker 14: Yeah, so I looked to add some of the code
Speaker 14: that you wouldn't see if you were on the website
Speaker 14: itself chatting with Clod.
Speaker 4: But it's really easy.
Speaker 14: Anybody can do this by using some tools that Chrome enables,
Speaker 14: they're called developer tools. And looked at the code that
Speaker 14: is used for the website and it indicates that they
Speaker 14: may be working on an image analysis feature. It says
Speaker 14: there are things like chat with pod about images, tell
Speaker 14: me more buildings by this architect, things like that that
Speaker 14: we expect will be coming soon to users of class.
Speaker 3: And so that puts Anthropic into a battleground with who, with.
Speaker 14: Open Ai and also with Google. Right now, there are
Speaker 14: an increasing number of what are often called multimodal models.
Speaker 14: These are these large language models that can take in
Speaker 14: not just a text prompt from a person, but also
Speaker 14: an image and maybe an image plus some words and
Speaker 14: then give you a result describing the image. Maybe you
Speaker 14: could give it an image of a dog and say
Speaker 14: what kind of dog is this, or what kind of
Speaker 14: plant is this?
Speaker 4: Or two images.
Speaker 14: That was one of the things that we found on
Speaker 14: the Claude website that is invisible to useurs yet describe
Speaker 14: the differences between these two images.
Speaker 10: That sort of thing.
Speaker 3: Bloomberg's Rachel Metz, who analyze the company website's underlying code
Speaker 3: in that reporting, thank you very much. Meanwhile, another story
Speaker 3: we're tracking, Apple's iPhone has dethroned Samsung devices to become
Speaker 3: the best selling smartphone series over the course of twenty
Speaker 3: twenty three, and Samsung's gearing up for one of its
Speaker 3: most anticipated phone launches in years later. On let's bring
Speaker 3: in Bloomberg's chief correspondent Mark German for more on the
Speaker 3: smartphone battle. You know, this was something that like Tim Cook,
Speaker 3: really leaned into in the last earnings, particularly in China,
Speaker 3: that they feel they were the best selling handset. You know,
Speaker 3: how significant is it that Apple defroned Samsung over the
Speaker 3: course of twenty three.
Speaker 15: Certainly a victory, right, given everything going on, It's a.
Speaker 4: Really big deal.
Speaker 15: I think they got a little bit of a boost
Speaker 15: on iPhone sales across calendar year twenty twenty three because
Speaker 15: of the production hiccups at the end of calendar twenty
Speaker 15: twenty two with the iPhone fourteen Pro. If you remember,
Speaker 15: right after the fourteen Pro launched, Apple had to pause
Speaker 15: production for several weeks due to China's then existing COVID protocols,
Speaker 15: which had to shut down fox Con and some of
Speaker 15: the peripheral factories, right, and so you saw some of
Speaker 15: those sales and those unit shipments hold off until the
Speaker 15: calendar turned into twenty twenty three when that issue was
Speaker 15: resolved after a matter of weeks. Then you combine that
Speaker 15: with the success of the iPhone fifteen Pro out of
Speaker 15: the gate, this is really good news for Apple. You know,
Speaker 15: I think that Samsung, what they've done is they've tried
Speaker 15: to diversify their smartphone line. They have sort of their
Speaker 15: flagship phones, which are the phones that are being introduced today.
Speaker 15: Those are the Galaxy S series, and then they have
Speaker 15: the Galaxy Fold series and the Galaxy Flip series, right,
Speaker 15: So they really segmented their smartphone market with even higher
Speaker 15: priced phones. And while over time, I think you're going
Speaker 15: to ultimately see a shift to foldables. Right, foldables maybe
Speaker 15: one day, five years from now, I think could be
Speaker 15: the majority share of the smartphone market for now, though
Speaker 15: that segmentation has created a little bit of a shipment
Speaker 15: issue for Samsung because of those high prices. Right, So
Speaker 15: for now, Apple's back in the lead for the first
Speaker 15: time since around the iPhone four came out, Right, remember
Speaker 15: that back in twenty ten. And it's interesting that this
Speaker 15: news arise as Samsung, like you said, it's about to
Speaker 15: make a very significant announcement with their new twenty four series.
Speaker 4: All right, Bloombos, mark Gum and thank you.
Speaker 3: Victory for Apple with the shares still under pressure in
Speaker 3: recent sessions. Now, coming up on the program, we'll get
Speaker 3: an update on the tech job's landscape with Lettis Lattice
Speaker 3: CEO Sarah Franklin. Okay, welcome back to Bloomberg Technology ed
Speaker 3: lovelo here in San Francisco, checking on the markets. That
Speaker 3: the themes are kind of familiar to us. Right, the
Speaker 3: market has been cutting its bets for FED rate cuts
Speaker 3: in twenty twenty four, pulling back all week long. There's
Speaker 3: gonna be a lot of FED speak and the language
Speaker 3: careful about when and to what extent we will see
Speaker 3: rate cuts.
Speaker 4: Why do we care on bloomber Technology.
Speaker 3: We care because higher rates discount the present value of
Speaker 3: future cash flows for tech. In other words, you're a
Speaker 3: higher multiple stock on the NAS that one hundred, You're
Speaker 3: very sensitive to the rate environment. We're soft by one
Speaker 3: percent on that index, which I always go to.
Speaker 4: Interesting.
Speaker 3: Twenty four hours ago, the megacaps were giving us some
Speaker 3: buoyant See if you look at most of the names
Speaker 3: and then as that one hundred, we're in the red.
Speaker 3: Twenty four hours later, some of those megacaps continue to
Speaker 3: see downward pressure. Alphabet Pairent of Google, Apple, Amazon, all
Speaker 3: down around a percentage point or more. Apart from Apple,
Speaker 3: the question is what joins them, and of late, there
Speaker 3: are a few analysts notes that put into doubt some
Speaker 3: of the growth trajectory of these companies twenty twenty four.
Speaker 3: But what they all have in common, based on Bloomberg reporting,
Speaker 3: is that there are layoffs either in the works or
Speaker 3: that have taken place. And you may have the sense
Speaker 3: of deja vus because we start twenty twenty four talking
Speaker 3: about big tech layoffs. I'm pretty sure if I jumped
Speaker 3: in my time machine I'd start twenty twenty three talking
Speaker 3: about big tech layoffs as well. Anyway, Meanwhile, more employees
Speaker 3: are fearful of losing their jobs this year and less
Speaker 3: confident to quit even if their expectations are not met.
Speaker 3: That's according to research by Ranstad. It also says AI
Speaker 3: skill development is quickly becoming a priority for companies and staff.
Speaker 4: I want to bring in Sarah Franklin for more.
Speaker 3: She is the CEO of Lattice, a people management platform
Speaker 3: which also just put out its own report taking the
Speaker 3: pulse of HR teams across the country. All of that
Speaker 3: preamble to say, in tech in particular, there is some
Speaker 3: uncertainty in this jobs market.
Speaker 13: It is crazy what the job market has gone through
Speaker 13: in the last few years. You saw incredible surgeon hiring
Speaker 13: and then massive correction, and so it makes sense that
Speaker 13: people are fearful because it's been huge ups and huge downs.
Speaker 13: Now at the start of the new year, and what
Speaker 13: I'm happy to say is that we're seeing more stabilization,
Speaker 13: more return to normalcy, more back to basics, more back
Speaker 13: to fundamentals. And if you look at the numbers last year,
Speaker 13: we were looking at one hundred and sixty seven thousand
Speaker 13: layoffs in big tech. That's fifteen times in normal and
Speaker 13: we're back to those pre COVID rates. So it's hopefully
Speaker 13: people can breathe a little bit of sense of fresh air.
Speaker 3: What many technology employees find hard to understand, and they
Speaker 3: voice this on social media and LinkedIn, is that that
Speaker 3: was the start of twenty twenty three. Big tech was
Speaker 3: pulling back because of over exuberance in hiring in twenty
Speaker 3: twenty three, twenty twenty two. But the same logic's applying now,
Speaker 3: so they're asking, well, hold on, why didn't we get
Speaker 3: through this in twenty twenty three. I guess the question
Speaker 3: is did tech right size enough? And the answer seems
Speaker 3: to be no.
Speaker 13: Well, what you're seeing now is back to basics and
Speaker 13: performance management. What you're seeing is that companies care about
Speaker 13: managing their people and their performance and they're making smart
Speaker 13: business decisions. This is normal part of business.
Speaker 4: Pre COVID.
Speaker 13: We were back to levels that are below that now
Speaker 13: and so it's still business which is having change and
Speaker 13: people are managing their performance, but it's not the massive,
Speaker 13: massive layoffs that you saw in twenty twenty three.
Speaker 3: I want to know the data that you have the
Speaker 3: HR team survey. What are the kind of three key
Speaker 3: takeaways that you learned from that exercise.
Speaker 13: So what we've learned is that half of companies are
Speaker 13: saying that they think that their teams are going to
Speaker 13: be back to about pre COVID levels. So again we're
Speaker 13: seeing this normalcy of shakeout in the data. And then
Speaker 13: also from the data, as I mentioned, one hundred and
Speaker 13: sixty seven thousand last year compared to sixteen thousand the
Speaker 13: year before, So this is very different in terms of
Speaker 13: what you're seeing year over year, and we're back to
Speaker 13: just about five thousand this year. And so what we're
Speaker 13: seeing is that necessary management of people and their performance
Speaker 13: and really how businesses are back to their fundamentals of
Speaker 13: looking at their valuations, looking at their profitability, and looking
Speaker 13: at their margins.
Speaker 3: So what Bloomberg reported in the context of Apple, for example,
Speaker 3: was very curious. It was that they were shutting down
Speaker 3: a San Diego based team that was focused on AI
Speaker 3: and Siri. And if you look at the news flow,
Speaker 3: actually AI seems to be a real driver of hiring
Speaker 3: right now because they're looking for skill specific people of
Speaker 3: you know, in terms of computer engineering, and my goodness
Speaker 3: to some of those jobs pay well.
Speaker 13: AI is definitely what everybody is doing right now in tech.
Speaker 13: It is all about innovation and helping everyone manage their
Speaker 13: people better and manage their businesses better. And people that
Speaker 13: have AI skills are in huge demand, and that is
Speaker 13: why you see so much reskilling necessary for AI, not
Speaker 13: just with people that are in AI themselves, with people
Speaker 13: that are employed in marketing and sales and HR people
Speaker 13: that need to understand how to use AI to help
Speaker 13: make them better at their job.
Speaker 3: And so then on the other side of the debate,
Speaker 3: is AI is going to replace jobs? Are you seeing
Speaker 3: any evidence of that?
Speaker 4: So far?
Speaker 13: Not seeing evidence of AI being replacing jobs. What you're
Speaker 13: seeing is AI is helping us be better and helping
Speaker 13: people rise to the level of performance that you want
Speaker 13: as a leader within your company. And so AI is
Speaker 13: here to help us and it's our job as leaders
Speaker 13: to deploy these technologies in a safe and responsible way.
Speaker 3: We're talking about jobs. Could we talk a little bit
Speaker 3: about your job? You in the role you know, Jack Altman,
Speaker 3: somebody familiar to this program, how has that been and
Speaker 3: just give us the background of the change your I
Speaker 3: guess promotional or addition to that role.
Speaker 13: Yeah, so I'm so excited to be CEO now of
Speaker 13: Lattice and as you mentioned, incredible companies solving the problems
Speaker 13: that every leader is facing today how to manage your
Speaker 13: people and their performance. I saw this in the market
Speaker 13: and I was excited to take this opportunity. And Jack
Speaker 13: is an incredible leader, an incredible visionary. He created this
Speaker 13: company blitz scaled it to the levels at now and
Speaker 13: it couldn't be more thankful or humble to work with
Speaker 13: him and the team to take it to the next level.
Speaker 4: That's a CEO, Sarah Franklin.
Speaker 3: Terrific to have you here in the San Francisco studio
Speaker 3: and jobs starting.
Speaker 4: The year as we did twenty twenty three.
Speaker 3: The story in the technology sector now another story that
Speaker 3: we're following. Google DeepMind said it's taken a crucial step
Speaker 3: towards making artificial intelligence as capable as humans. It involves
Speaker 3: solving high school math problems. Deep Mind introduced a system
Speaker 3: called alpha geometry that proves complex geometry theorems better than
Speaker 3: prior computer programs. Researchers at the company described this as
Speaker 3: a major breakthrough of an AI applying reasoning and planning
Speaker 3: to tasks, something even today's advanced models thus far couldn't
Speaker 3: do now coming up here on Bloomberg Technology and all
Speaker 3: European commercial crew is due to launch the International Space
Speaker 3: Station sometime this week. We'll have all the details coming
Speaker 3: up next. Also taking a look at shares of Uber,
Speaker 3: The company confirmed that it will shut down Drizzly, the
Speaker 3: alcohol delivery service it acquired for one billion dollars in
Speaker 3: twenty twenty one, at the end of March, Uber stating
Speaker 3: its focus on its Uber Eat strategy of helping consumers
Speaker 3: get almost anything from food to groceries and that includes alcohol.
Speaker 3: This is Bloomberg Technology. SpaceX is set to launch the
Speaker 3: first all European commercial crew to the International Space Station
Speaker 3: later this week. US commercial space fight company Axiom Space
Speaker 3: and NASA are set to launch a crew of four
Speaker 3: on SpaceX's Falcon nine rocket. It will be Axiom's third
Speaker 3: crude mission into low Earth orbit. But a quick piece
Speaker 3: of news for the audience. Launch had been due to
Speaker 3: be Wednesday afternoon. It is now moving to the backup
Speaker 3: window of Thursday afternoon, which we'll track here on Bloomberg.
Speaker 3: Joining us to discuss Carrie Bingen, director of the Aerospace
Speaker 3: Security Project at the Center for Strategic and international studies
Speaker 3: or CEASIS for sure, a carrie. You have so much
Speaker 3: experience across private and public sector space. But let's start
Speaker 3: with Axiom. You know I've attended some of the earlier missions.
Speaker 3: What does the cadence of the Axiom SpaceX partnership represent
Speaker 3: for you in the context of commercial space?
Speaker 12: Thanks Ed, It's great to be here. This is really
Speaker 12: exciting for me. Axiom Space. It's a commercial company. This
Speaker 12: is their third mission to the International Space Station. It's
Speaker 12: the first all European crew. So there's a couple of
Speaker 12: big firsts here. First astronaut from Turkey, first astronaut with
Speaker 12: the European Space Agency. Axium Space is looking at getting
Speaker 12: into a cadence of about two of these launches a year.
Speaker 12: And again, this is not a government doing this. This
Speaker 12: is a commercial space company.
Speaker 3: So if you look at the crew, they are essentially
Speaker 3: personnel from different European space agencies. But Axium also has
Speaker 3: this kind of tourism element to it, where a private
Speaker 3: citizen or civilian for one of a better word, can
Speaker 3: take a future mission. Where do you see the most
Speaker 3: potential the private sector basically becoming a service for international
Speaker 3: space agencies or the tourism element, so I.
Speaker 12: Would envision their business model is a bit of both.
Speaker 12: And what's really interesting about what's happening in the commercial
Speaker 12: space arena right now is that it is allowing an
Speaker 12: increased access to space, so both by nations or foreign
Speaker 12: governments that maybe couldn't affec forward or didn't have the
Speaker 12: technical capability to build rockets and space stations themselves, but also.
Speaker 10: For private citizens.
Speaker 12: It would have been unfathomable even ten years ago, say,
Speaker 12: for this many private citizens to be able to launch
Speaker 12: into space spend a week or so on a space station,
Speaker 12: it's pretty amazing.
Speaker 3: Carrie, are you able to reflect when at what point
Speaker 3: you kind of suddenly realized that SpaceX had kind of
Speaker 3: changed the game for access to lower for a bit,
Speaker 3: the human access to space.
Speaker 12: You know, I'd have to say it's been really within
Speaker 12: the last couple of years.
Speaker 10: And let's look at last year alone.
Speaker 12: So SpaceX with their Falcon nine space launch vehicle I
Speaker 12: believe launched was it sixty six times? That's more than
Speaker 12: once a week. And I come from a community working
Speaker 12: in the US national security enterprise or as we were talking,
Speaker 12: maybe one launch a month. So the fact that SpaceX
Speaker 12: is getting down to less than one launch per week
Speaker 12: is extraordinary. Plus they've announced plans I think at over
Speaker 12: one hundred and forty launches is what they'd like to
Speaker 12: do going into twenty twenty four. That's by my envelope
Speaker 12: math here, that's two to three launches per week. That
Speaker 12: is an extraordinary cadence. Now, some of that's human spaceflight,
Speaker 12: but a lot of that is launching commercial payloads their
Speaker 12: own starling satellites and then government systems, whether it be
Speaker 12: US or international.
Speaker 3: So the question is whether the SpaceX is the only
Speaker 3: game in town now and for how long? And you know,
Speaker 3: a big story in recent weeks has been ULA and Vulcan,
Speaker 3: something a launch system which you have some history and
Speaker 3: experience with your reaction to that ULA test.
Speaker 12: It's been a while coming. So I would like to
Speaker 12: congratulate ULA for.
Speaker 10: That successful launch last week.
Speaker 12: You know, one of the things that I think got
Speaker 12: lost in some of the headlines last week because there
Speaker 12: was so much focus on the Peregreen Lunar Lander and
Speaker 12: the issues that they had and ultimately and now has
Speaker 12: led to a failed mission. What was lost in all
Speaker 12: of that is this was the first time that ULA
Speaker 12: was now able to fly an American made rocket engine.
Speaker 12: Up until now they've been relying on RD one eighty.
Speaker 12: This is a Russian rocket engine. And it really was
Speaker 12: Congress back in the twenty fourteen twenty fifteen time frame,
Speaker 12: after Russia invaded Crimea. Then it was Senator John McCain
Speaker 12: that said, hey, we got to get off these Russian
Speaker 12: rocket engines. We are not going to be lining the
Speaker 12: pockets of these Russian ola arts and the government. And
Speaker 12: so finally, you know, we've seen the development of an
Speaker 12: American engine, the Blue Origin B four successfully launch on Vulcan,
Speaker 12: and that adds to just competition overall, which is I
Speaker 12: think healthy.
Speaker 10: For our industrial base in the space launch arena.
Speaker 3: Carry for the Vulcan in ula. What would represent progress
Speaker 3: and success for you?
Speaker 4: This year?
Speaker 12: You got to get a couple launches under their belt.
Speaker 12: You know, one launch is good, but they now have
Speaker 12: to get into a good cadence of launches really prove
Speaker 12: out that technology. I believe that the Department US Department
Speaker 12: of Defense has said, hey, we want to see two
Speaker 12: more launches before we can fully certify this to launch
Speaker 12: government payloads. So I'll be looking for repeatability and consistency
Speaker 12: and I'll say, I mean that's an area where SpaceX,
Speaker 12: with there hundreds of launches, they really got that down
Speaker 12: to a science. So I'd like to see ULA make
Speaker 12: some progress there as well.
Speaker 3: Carrie, we really enjoy having you on the program. I
Speaker 3: just ask if you could tell our audience what you've
Speaker 3: been working on and where the focus of your study
Speaker 3: and research is being.
Speaker 12: Of late, so I lead the Aerospace Security Project here
Speaker 12: at the Center for Strategic and International Studies. I am
Speaker 12: a space nerd from early in my youth, so I love.
Speaker 10: Working these space topics.
Speaker 12: Some of my big focus areas have really been on
Speaker 12: space security. The growing with the increased commercialization of space,
Speaker 12: greater use of it for national security, for economic benefit,
Speaker 12: there are also growing challenges, so the threats to space
Speaker 12: are increasing.
Speaker 10: I'm looking at that, looking at what.
Speaker 12: China is doing in particular, both within their military and
Speaker 12: national security arena. But they're also making some interesting strides
Speaker 12: on the commercial front, and you can question whether, well
Speaker 12: if it's truly commercial, but there are making some interesting
Speaker 12: strides there that I've been watching closely.
Speaker 3: Carrying in director of the area Space Security Project at
Speaker 3: the Center for Strategic and International Studies just terrific to
Speaker 3: have you on the program.
Speaker 4: Thank you.
Speaker 3: Electric Boats startup Navy is partnering with payments process company
Speaker 3: Stripe to ferry employees to work before year old startup
Speaker 3: has already hosted some pretty high profile.
Speaker 4: Names like Elon Musk on its boats.
Speaker 3: Navy A CEO san Pritti Batacharia joins us to discuss
Speaker 3: a big step for this startup. You and I have
Speaker 3: spoken a lot about the underlying technology battery electric hydrofoil boat.
Speaker 3: This is the kind of first big commercial deployment. Yes,
Speaker 3: what are you doing with Stripe? Where does it run
Speaker 3: and how does it work?
Speaker 4: Yeah?
Speaker 2: You know, So we are starting off with a pilot
Speaker 2: program with Stripe to shuttle their employees in not Bay
Speaker 2: from North Bay to their headquarters in Oyster Point. So
Speaker 2: it's starting in March and it's really first off its kind,
Speaker 2: you know that it has ever been done.
Speaker 3: It's about a twenty mile trip point to point. Yes,
Speaker 3: what will the experience be for a Stripe employee, you
Speaker 3: know in the morning getting into work in that method
Speaker 3: of transport?
Speaker 2: Absolutely, you see. The biggest disruption I feel that naviebe
Speaker 2: vessels can bring is transportation in coastal cities where we are,
Speaker 2: you know, so frustrated by the traffic and traffic I
Speaker 2: mean when you think about it is mostly due to
Speaker 2: employees going to work in the morning right by driving
Speaker 2: their own cars. So in Bay Area also the number
Speaker 2: of supercommuters, which means like people who are doing a
Speaker 2: round trip of three hours, is quite high. So large
Speaker 2: Spool is actually one of those routes. I mean, it
Speaker 2: can take you about one and a half hours each
Speaker 2: way during rush hour to get there or go from
Speaker 2: there to Ope. So instead of that like driving yourself
Speaker 2: getting stuck on the traffic, you can be on a
Speaker 2: smooth you know, quiet foiling growth, like you're literally four
Speaker 2: feet above the wags, so you don't feel seasickness. It
Speaker 2: has you know, Wi Fi and all En route productivity tools.
Speaker 2: You will have a desk if you want to work
Speaker 2: while going to work, but it's a it's really a
Speaker 2: much more refreshing and relaxing way to get to your
Speaker 2: work and not worry about driving yourself. And also you know,
Speaker 2: as a part of it, you are reducing the carbon footprint, right,
Speaker 2: I mean each of those vessels taking a bunch of
Speaker 2: people of cars of the road.
Speaker 4: Let's talk about the technology.
Speaker 3: Then you are doing production. You know, you're at the
Speaker 3: early stages of building out the fleet. What is it
Speaker 3: that's unique about Navia from the drive train or powertrain
Speaker 3: perspective and the design right.
Speaker 2: So you know, forty six person of the world I
Speaker 2: mean lives in congested coastal cities, and you know, we
Speaker 2: are talking about, well, how do we attack you know,
Speaker 2: traffic problems. Should we build flying cars, should really dig tunnels,
Speaker 2: But coastal cities with US San Francisco, New York have
Speaker 2: this big real estate called you know the water right
Speaker 2: super underutilized because we could not figure out how to
Speaker 2: you know, build high speed boats that are like effective
Speaker 2: operation costs wise as well as actually convenient, smooth, and
Speaker 2: you know, have a good right quality.
Speaker 4: And you've cracked that.
Speaker 2: That is exactly the two key problems that we address
Speaker 2: is like operational cost and right quality. And how we
Speaker 2: do that is electric and hydrofoil. So hydrofoil takes a
Speaker 2: boat just like you know, it's it's like airplane. So
Speaker 2: we have wings underwater at a certain speed, the boat
Speaker 2: you know, rises above the water, it has left and
Speaker 2: with electric, you know, it's quiet, it's smooth, so you
Speaker 2: don't have this, you know, gas guzzling engine noises. So
Speaker 2: it's a very transformative experience. So since you're not pushing water,
Speaker 2: you're more than ten times efficient than a traditional gas boat.
Speaker 2: And that is the big disruption in when it comes
Speaker 2: to cost very quickly.
Speaker 3: Bay Area is the start. Where do you expand to
Speaker 3: just thirty seconds?
Speaker 2: Yeah, I mean New York, Seattle, I mean Miami, La,
Speaker 2: you name it. I mean many areas in US, but
Speaker 2: globally the market is even bigger.
Speaker 4: All right.
Speaker 3: That was navy A CEO Sam Pritty Badacharia on the
Speaker 3: expansion of Navia to run a pilot here in the
Speaker 3: Bay Area for Stripe. That does it for this edition
Speaker 3: of Bloomberg Technology, My goodness, a busy week so far.
Speaker 4: Don't forget to check out the podcast.
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