WEBVTT - Special: Bloomberg Tech Live From HumanX 0:00:02.520 --> 0:00:07.440 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.720 --> 0:00:09.800 From the heart of. 0:00:09.760 --> 0:00:15.480 Where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.920 --> 0:00:19.960 This is Bloomberg Technology with Caroline Hyde. 0:00:19.760 --> 0:00:20.760 And Ed Ludlow. 0:00:37.159 --> 0:00:40.280 Welcome to a special edition of BlueBag Technology. I'm Caroline Hyde. 0:00:40.320 --> 0:00:42.600 Right here in Las Vegas. We are live from the 0:00:42.720 --> 0:00:45.960 human x AI conference and we're going to be talking 0:00:46.000 --> 0:00:48.920 to some of the biggest industry leaders and decision makers 0:00:49.200 --> 0:00:52.519 in the AI space throughout this next hour. As you 0:00:52.560 --> 0:00:55.120 can see, a key lineup of expertise. But let's move 0:00:55.160 --> 0:00:57.960 on to also the discussion of how the public markets 0:00:58.160 --> 0:01:01.000 feed into the private markets. How does one think about 0:01:01.000 --> 0:01:05.280 the startup space as we contend with this growth anxiety, 0:01:05.560 --> 0:01:08.480 as we contend with tariff anxiety. Let's bring in Alfred 0:01:08.560 --> 0:01:12.000 Lynn Squire Capital Partners, someone who thinks about seed about 0:01:12.000 --> 0:01:14.280 early stage investment, has been at the forefront of artificial 0:01:14.280 --> 0:01:18.960 intelligence investment before many others. And Alfred, look, how does 0:01:19.000 --> 0:01:20.960 the public market feed into the private market from your 0:01:20.959 --> 0:01:21.800 perspective right now? 0:01:22.080 --> 0:01:24.080 Well, Caroline, thank you for having me on the show. 0:01:24.280 --> 0:01:26.840 This is a great honor to be here, you know, 0:01:26.920 --> 0:01:30.040 to answer your question directly, We just think about building 0:01:30.040 --> 0:01:33.360 great companies and partnering with great founders and helping them 0:01:33.480 --> 0:01:36.280 from idea to IPO and beyond. And so in terms 0:01:36.280 --> 0:01:38.600 of thinking about the public markets, we just think about 0:01:38.800 --> 0:01:41.399 much much longer term. We work with founders at the 0:01:41.440 --> 0:01:44.520 idea stage in a y in a decade, that company 0:01:44.520 --> 0:01:46.920 can then be worth one to ten million dollars in 0:01:46.959 --> 0:01:49.680 two decades. It could be worth ten to one hundred 0:01:49.720 --> 0:01:53.640 billion dollars in three decades, like in for invidious case, 0:01:53.760 --> 0:01:57.080 in Google's case, in Apple's case that we backed very 0:01:57.080 --> 0:02:01.640 early on, they become potentially a trilling dollar company. And so, yes, 0:02:01.720 --> 0:02:04.440 markets can go up and down, there might be you know, 0:02:04.520 --> 0:02:06.600 sort of bumps in the road, but I would just 0:02:06.720 --> 0:02:09.120 encourage your viewers to think about the long long term 0:02:09.400 --> 0:02:12.480 and when you're behind a megatrends such as AI, it 0:02:12.520 --> 0:02:14.440 can last for a long, long period of time. 0:02:14.639 --> 0:02:17.680 That megatren needs infrastructure and it needs electricity and power. 0:02:17.720 --> 0:02:20.359 That's one of the key anxieties of Andy Jesse, for example, 0:02:20.400 --> 0:02:23.560 at Amazon saying his constraint on AWS is power. Is 0:02:23.600 --> 0:02:25.440 it something that your ceo is are contending with how 0:02:25.480 --> 0:02:27.440 to ultimately sustain their growth paths? 0:02:27.680 --> 0:02:29.760 I think it's something that they think about, and it's 0:02:29.760 --> 0:02:32.480 something that we need to work on, and there are 0:02:32.520 --> 0:02:34.200 a lot of great minds working on it. It's not 0:02:34.240 --> 0:02:37.200 something that I'm an expert in, but you're right. Power 0:02:37.240 --> 0:02:39.200 is something that we need in data centers, and the 0:02:39.800 --> 0:02:42.040 bigger the data centers we've built, the more powerful the 0:02:42.080 --> 0:02:45.160 models we've been able to build, the more powerful the applications, 0:02:45.600 --> 0:02:47.639 and so I'm sure we'll get solved. 0:02:47.960 --> 0:02:50.720 Also interesting is, of course you mentioned how Sequoia was 0:02:50.760 --> 0:02:54.639 early into Jensen Huang's vision for AI. You're now thinking 0:02:54.639 --> 0:02:57.960 about not just sort of moving away from lllms, we're 0:02:58.000 --> 0:03:00.000 going into application layers, and we're also going into physics. 0:03:00.600 --> 0:03:02.320 I know that that's really important to you at the moment, 0:03:02.320 --> 0:03:05.680 the application of robotics. Where is the next growth story 0:03:05.760 --> 0:03:07.040 in this long term mega trend? 0:03:07.560 --> 0:03:09.480 Well, I think they're uh, let's break this up. I 0:03:09.480 --> 0:03:11.680 think s there's still lots to do in the foundation 0:03:11.800 --> 0:03:12.280 layer model. 0:03:12.320 --> 0:03:14.440 They're not done. These companies like open. 0:03:14.240 --> 0:03:18.040 Ai that we backed UH early on, they're still continuing 0:03:18.120 --> 0:03:20.880 to build a foundation model layer that allows the application 0:03:21.320 --> 0:03:24.280 founders to build applications that we've not seen before. And 0:03:24.320 --> 0:03:27.200 we will continue to see UH innovation there will you 0:03:27.200 --> 0:03:27.720 continue to. 0:03:27.720 --> 0:03:30.079 See private rounds for those sorts of companies. 0:03:30.120 --> 0:03:31.600 Is there ever a point in which they've just raised 0:03:31.639 --> 0:03:33.080 too much money in the private markets? 0:03:33.720 --> 0:03:35.320 It c It goes up and down. 0:03:35.360 --> 0:03:37.600 But the p the point is that over time these 0:03:37.640 --> 0:03:41.040 companies are always surprising us in the long run on 0:03:41.080 --> 0:03:43.400 what they're capable of doing. Sure, in the short term 0:03:43.560 --> 0:03:46.960 they may uh surprise us in the I and technology 0:03:47.000 --> 0:03:50.040 tends to surprise us in the opposite direction, but in 0:03:50.080 --> 0:03:53.080 the long run it always surprises us in the positive direction. 0:03:53.800 --> 0:03:56.680 And in in terms of many of the companies who 0:03:56.680 --> 0:03:59.000 work with, they're just providing automation to. 0:03:59.080 --> 0:04:01.880 A lot of work flows today. That's what we see today. 0:04:01.960 --> 0:04:05.040 So companies that we work with, such as Clay, they're 0:04:05.040 --> 0:04:08.800 trying to help salespeople with their leads and autoutomatically enriching 0:04:08.840 --> 0:04:12.560 their leads so that the salespeople can focus on actually 0:04:12.560 --> 0:04:16.960 growing their business and contacting the right leads. And with 0:04:17.080 --> 0:04:20.080 Khmure or their ambient scribe is helping doctors focus on 0:04:20.240 --> 0:04:23.040 care not the administrative work. They listen in the background, 0:04:23.120 --> 0:04:25.640 take notes, and yes they take the notes. It seems 0:04:25.680 --> 0:04:27.680 like something small, but then once you take the notes, 0:04:27.720 --> 0:04:32.280 they can code the medical codes properly for insurance claims, 0:04:32.400 --> 0:04:35.360 and that just allows the doctors to focus on care. 0:04:35.760 --> 0:04:38.080 And we're going to see more and more innovation because 0:04:38.120 --> 0:04:40.960 we are left to do some of the more interesting 0:04:41.000 --> 0:04:44.080 things that humans do better than machines. 0:04:44.839 --> 0:04:47.960 So you're looking at still LMS still then looking at 0:04:47.960 --> 0:04:50.920 the application there. What's been interesting is we have had 0:04:50.920 --> 0:04:56.160 this fomo feel in still in the latest alumni from 0:04:56.200 --> 0:04:58.800 open ai going up and starting their own company at Ilia, 0:04:58.880 --> 0:05:02.120 for example, potentially raise get thirty billion dollars without even 0:05:02.160 --> 0:05:04.400 really a product out there or any revenue stream. 0:05:04.680 --> 0:05:06.520 Would you still back him at that sort of valuation? 0:05:06.640 --> 0:05:08.120 Are you doing following an investment? 0:05:08.480 --> 0:05:11.320 I think the interesting thing is if you think that 0:05:11.400 --> 0:05:15.080 something could be worth a trillion dollars, whether it's what 0:05:15.120 --> 0:05:19.800 you the entry price today is important, but not as 0:05:19.800 --> 0:05:22.160 relevant as what you think the order of magnitude is 0:05:22.240 --> 0:05:24.839 in the future. And I think the order of magnitude 0:05:24.839 --> 0:05:27.320 that we think about today will surprise us in the 0:05:27.320 --> 0:05:27.800 long run. 0:05:28.440 --> 0:05:29.880 Don't forget a decade ago. 0:05:30.000 --> 0:05:32.279 Two decades ago, we didn't think a trillion dollar company 0:05:32.320 --> 0:05:36.000 as possible. If you compound what trillion dollars twenty percent 0:05:36.000 --> 0:05:38.279 a year of a year for the next decade, we 0:05:38.360 --> 0:05:43.680 will have ten twenty trillion dollar companies. So you know, 0:05:43.880 --> 0:05:46.000 you just have to think about the order of magnitude 0:05:46.000 --> 0:05:49.400 that is possible and we need to change our mindspace 0:05:49.440 --> 0:05:49.800 around that. 0:05:50.400 --> 0:05:52.799 Help change our mind space because you have been seeing 0:05:52.800 --> 0:05:56.440 around these corners longer than nearly anyone. How can you 0:05:56.480 --> 0:05:58.680 see that earlier is someone to back? How can you 0:05:58.680 --> 0:06:00.719 see that a founder is in an indel you want 0:06:00.720 --> 0:06:02.680 to see the vision of and think. 0:06:02.440 --> 0:06:04.040 That they get to build a trillion on a company. 0:06:04.080 --> 0:06:04.279 Yeah. 0:06:04.279 --> 0:06:06.240 I think that it comes down to the founders. And 0:06:06.320 --> 0:06:08.960 we've been very good at picking founders that are known 0:06:09.000 --> 0:06:13.719 by their first names. Jensen at Nvidio, that Steve ad Apple, 0:06:14.600 --> 0:06:16.479 Larry at Google, Sam. 0:06:16.160 --> 0:06:17.719 And Sam and open Ai. 0:06:18.040 --> 0:06:23.200 And today's founders are Ilia and Brian at Airbnb and 0:06:23.240 --> 0:06:26.760 Tony at geor Dash and the list goes on and on. 0:06:26.880 --> 0:06:30.279 So these founders are special because they have a vision 0:06:30.320 --> 0:06:34.159 of the world that the world has viewed, the world 0:06:34.480 --> 0:06:38.000 has sorry, the world has solved a problem incorrectly, and 0:06:38.000 --> 0:06:40.160 they want to go change it. Yeah, and we get 0:06:40.200 --> 0:06:42.120 the front row seat to see how they want to 0:06:42.160 --> 0:06:43.080 go change the future. 0:06:43.880 --> 0:06:46.320 Is Mara going to be a name that we know 0:06:46.520 --> 0:06:47.480 and one that you're gonna. 0:06:47.240 --> 0:06:48.279 Allow you already know. 0:06:48.839 --> 0:06:49.640 Are you backing her? 0:06:51.400 --> 0:06:53.839 We're talking to her, You're talking to Merrett, You're talking 0:06:53.839 --> 0:06:55.279 to Ilia on his latest funding round. 0:06:56.120 --> 0:06:57.760 Where are investor is in LA's company? 0:06:57.839 --> 0:06:59.800 I know do follow on because he's building something a 0:06:59.800 --> 0:07:00.360 big vision. 0:07:00.680 --> 0:07:01.760 We'll consider that too. 0:07:02.960 --> 0:07:05.320 Tell us about the thesis when it comes to llms 0:07:05.400 --> 0:07:08.680 and then application layers and then the robotics and physical AI. 0:07:09.160 --> 0:07:12.440 What for you is going to be pushing us forward 0:07:12.440 --> 0:07:14.600 in terms of the next situation of value coming from 0:07:14.640 --> 0:07:17.720 these companies going to Are we getting to the stage 0:07:17.760 --> 0:07:20.160 that they will see one trillion across all of those spaces? 0:07:20.200 --> 0:07:22.160 Do you think I believe that's to be true. 0:07:22.160 --> 0:07:24.400 And if you sort of go back in time, when 0:07:24.400 --> 0:07:27.600 I started my career, we thought that all the value 0:07:27.640 --> 0:07:31.120 will accrue to the software layer. That's why we invest 0:07:31.160 --> 0:07:34.600 in software companies. Yeah, but over today the Magnificent seven, 0:07:34.720 --> 0:07:38.200 all of them are both hardware and software companies, and 0:07:38.240 --> 0:07:40.160 some of them in the physical world. I think the 0:07:40.160 --> 0:07:42.480 physical world is going to be the next boundary that 0:07:42.480 --> 0:07:44.600 we're going to break, which is why I'm very excited 0:07:44.600 --> 0:07:47.520 to be here with Brad Porter from Collaborative robotics. 0:07:47.800 --> 0:07:50.480 And it's interesting, of course you backed Xai when it 0:07:50.480 --> 0:07:54.880 comes to AI. Elon himself busy looking at robotics from 0:07:54.880 --> 0:07:58.160 his Tesla perspective as well. How are you thinking about 0:07:58.160 --> 0:08:01.280 who wins in the robotics space? They're gonna be countless 0:08:01.280 --> 0:08:03.040 winners and applications. 0:08:02.440 --> 0:08:04.840 As you know that there are many many winners, Uh 0:08:04.960 --> 0:08:07.440 when there when there's a megatron, and so I believe 0:08:07.440 --> 0:08:11.400 they're gonna be many winners and robotics. And yes, Tesla's 0:08:11.440 --> 0:08:14.800 building robots. They were building cars before. They also build software. 0:08:15.120 --> 0:08:18.160 And Elon Uh is someone that we back across a 0:08:18.200 --> 0:08:23.120 variety of companies such as SpaceX and Boring Company, and 0:08:23.760 --> 0:08:26.360 the physical world is something that we will continue to 0:08:26.400 --> 0:08:28.600 attack and make progress over the coming years. 0:08:29.080 --> 0:08:33.600 How frustrating or how illuminating is it when your founders 0:08:33.600 --> 0:08:36.240 are having arguments in public like Sam versus Elon? 0:08:36.360 --> 0:08:37.040 Does that bother you? 0:08:38.240 --> 0:08:41.920 That's you can ask them that those questions. But no 0:08:43.400 --> 0:08:45.920 founders have Uh a particular view of the world and 0:08:46.160 --> 0:08:49.040 they like to be they like to express those views. 0:08:49.080 --> 0:08:50.439 So it's good. 0:08:50.160 --> 0:08:54.520 That people sort of talk about what they believe and 0:08:54.520 --> 0:08:56.840 how they're going to change the world through that and 0:08:56.880 --> 0:08:59.640 I believe the discussion is always the positive thing. 0:09:00.320 --> 0:09:02.440 Who and where are they going to be from? 0:09:02.559 --> 0:09:04.480 Is changing the world at this moment when you think 0:09:04.480 --> 0:09:06.040 about China versus. 0:09:05.840 --> 0:09:07.160 The US deep Seek. 0:09:07.200 --> 0:09:09.880 You wrote a very thoughtful blog about the impact of 0:09:09.920 --> 0:09:13.560 deep seek and the opportunities for learning from these powerful 0:09:13.640 --> 0:09:16.640 generative AI models that come and the innovation and the 0:09:16.720 --> 0:09:20.120 data and the efficiencies we're going to see. Are we 0:09:20.200 --> 0:09:22.920 going to see a so called winners on either side 0:09:23.200 --> 0:09:24.400 and around the world. 0:09:25.240 --> 0:09:28.640 Well, I believe in humanity instead of one country over 0:09:28.679 --> 0:09:30.960 the other. I am an immigrant to this country, and 0:09:31.000 --> 0:09:34.000 I believe that the way we operate and build businesses 0:09:34.000 --> 0:09:37.160 here is much more innovative. And so I'm rooting for 0:09:37.240 --> 0:09:40.280 the United States, but more but even more than I'm 0:09:40.360 --> 0:09:43.400 rooting for humanity to continue to progress. And the more 0:09:43.440 --> 0:09:45.920 progress we make here, the more progress the people in 0:09:46.000 --> 0:09:48.199 China want to make, And the more progress they make there, 0:09:48.240 --> 0:09:51.240 the more we want to continue to make progress. And 0:09:51.280 --> 0:09:54.320 so that just is the thing that I'm I'm most 0:09:54.360 --> 0:09:56.640 focused on, which is we're going to just make each 0:09:56.640 --> 0:09:58.199 other better at Competition. 0:09:57.800 --> 0:09:59.720 Has always made us better. 0:10:00.200 --> 0:10:03.559 And I believe in the United States and its ability 0:10:03.600 --> 0:10:06.400 and it's free society to do things in much more 0:10:06.400 --> 0:10:08.800 innovative ways than almost any other country in the world. 0:10:09.120 --> 0:10:12.000 It's our innovation, it's our free spirit, and it's also 0:10:12.040 --> 0:10:16.400 our capital markets. You think about our place in the world. 0:10:16.440 --> 0:10:19.360 We have what approximately four percent of the world's population, 0:10:20.160 --> 0:10:25.000 but we have a disproportionate number of the amazing companies, 0:10:25.400 --> 0:10:27.480 the most valuable companies in the world. We have a 0:10:27.520 --> 0:10:32.800 disproportionate amount of capital that we have and control. 0:10:32.360 --> 0:10:33.480 And are able to invest. 0:10:33.640 --> 0:10:37.360 This is why your viewers listen to you and this show, 0:10:37.480 --> 0:10:40.800 because Bloomberg is the place where a lot of information 0:10:40.840 --> 0:10:42.240 about capital is talked about. 0:10:42.720 --> 0:10:45.440 Alphad thanks that they're listening to you, and they're listening 0:10:45.520 --> 0:10:49.360 to thinking about how the money comes back ultimately to 0:10:49.440 --> 0:10:52.240 your LPs, and it's going to be about exits. How 0:10:52.280 --> 0:10:54.079 are you thinking about the IPA market? How you think 0:10:54.080 --> 0:10:56.040 about M and A. Boy, we just had service now 0:10:56.120 --> 0:10:57.760 move works. M and A is still getting done. 0:10:57.960 --> 0:11:00.280 Yeah, So I think that that's a great question shown 0:11:00.320 --> 0:11:02.280 lots of people ask that, but I just want to 0:11:02.720 --> 0:11:06.000 emphasize that at SAKO, over the last five years, we've 0:11:06.000 --> 0:11:08.800 distributed over forty three billion dollars back to our LPs, 0:11:09.160 --> 0:11:11.040 and so this is a business that, if done right, 0:11:11.160 --> 0:11:15.120 can generate a lot of returns for elimited partners. On 0:11:15.160 --> 0:11:19.160 top of that, I just kind of tell our founders 0:11:19.240 --> 0:11:21.800 it doesn't matter what's going on in the public markets 0:11:21.920 --> 0:11:24.040 or in the M and A markets, just focus on 0:11:24.080 --> 0:11:26.400 building a long term great business. If you do that, 0:11:26.880 --> 0:11:29.640 as did Tony at Door to Ash and Brian at 0:11:29.640 --> 0:11:32.880 Airbnb and many others are doing today, you. 0:11:32.840 --> 0:11:34.199 Will always have options. 0:11:34.400 --> 0:11:36.560 And that option may come in at M and A, 0:11:36.679 --> 0:11:38.199 that option may come in IPO. 0:11:38.800 --> 0:11:40.480 I would contend that the IPO. 0:11:40.160 --> 0:11:42.240 Market is always open for great companies. 0:11:42.640 --> 0:11:47.040 What's interesting is we first saw AI come into existence 0:11:47.360 --> 0:11:50.120 almost in a not for profit mentality, and now we 0:11:50.160 --> 0:11:52.480 think open AI thinking about trying to restructure and become 0:11:52.480 --> 0:11:53.960 a for profit entity more clearly. 0:11:54.040 --> 0:11:55.160 Is that something that you back, that. 0:11:55.120 --> 0:11:57.280 You support, that you want to see clearer division of 0:11:57.360 --> 0:11:58.120 for profit and not. 0:11:59.120 --> 0:11:59.520 I think that. 0:11:59.840 --> 0:12:02.640 I think if you go back in history, AI has 0:12:02.679 --> 0:12:05.040 existed for way longer than what you're talking about, which 0:12:05.040 --> 0:12:07.959 is open AI. I mean, the j Jensen was building 0:12:08.040 --> 0:12:11.400 GPUs way longer than what we're talking about today. And 0:12:11.559 --> 0:12:14.160 the first uh, the first set of applications that we're 0:12:14.600 --> 0:12:19.199 that were AI applications were something like AdWords that Google built, 0:12:19.600 --> 0:12:23.320 or trading platforms that many of your viewers and that 0:12:23.400 --> 0:12:27.240 work at large institutions have been using. Those who were 0:12:27.240 --> 0:12:32.040 called machine learning. We just changed that term for profit nonprofit. 0:12:32.120 --> 0:12:35.559 Those are just structures for accomplishing what the mission of 0:12:35.640 --> 0:12:37.000 the company wants to do. 0:12:37.320 --> 0:12:40.000 And I'm supportive of whatever. 0:12:39.760 --> 0:12:44.480 The right model is to do that. But as an investor, 0:12:44.640 --> 0:12:46.640 I want to make sure that the equity that we 0:12:46.720 --> 0:12:51.880 invest in has appreciation and that's that's that's separate from 0:12:52.000 --> 0:12:52.559 the mission. 0:12:52.960 --> 0:12:55.760 Well, you have an extraordinary realm of portfolio companies. You 0:12:55.760 --> 0:12:58.200 sit on some amazing board Citadel Securities among them, as 0:12:58.200 --> 0:13:00.480 well as ABNB as you say, and you had a 0:13:00.559 --> 0:13:03.120 long history of being a founder and a builder yourself. 0:13:03.360 --> 0:13:05.640 Alfred Lynn, we thank you so much from Sequoia Capital 0:13:05.720 --> 0:13:07.680 once we return. Now they're the private markets and people 0:13:07.679 --> 0:13:11.040 building within that space. Mayhobib is a key founder, CEO 0:13:11.360 --> 0:13:14.480 and indeed the co founder of Writer Generative AI platform 0:13:14.520 --> 0:13:15.440 for the enterprise. 0:13:15.840 --> 0:13:16.560 And I've got to. 0:13:16.559 --> 0:13:19.240 Ask at this time, May, when you're really seeing the 0:13:19.280 --> 0:13:21.400 growth accelerate for your business, when you're seeing more and 0:13:21.440 --> 0:13:23.440 more fortune five hundred businesses want to work with you. 0:13:23.840 --> 0:13:26.400 What are these CEOs telling you about the landscape, about 0:13:26.480 --> 0:13:29.120 anxiety about putting money into generative AI when they don't 0:13:29.120 --> 0:13:30.280 know when the next tariff is hitting. 0:13:30.559 --> 0:13:33.120 Yeah, there's no question that selling generative I in the 0:13:33.280 --> 0:13:36.040 enterprise right now has to be an ROI first story. 0:13:36.160 --> 0:13:38.280 Because these are the same CEOs who are telling the 0:13:38.280 --> 0:13:40.720 street that they're cutting op X and you know they're 0:13:40.720 --> 0:13:44.640 trimming down their teams. So it really puts a big 0:13:44.679 --> 0:13:47.480 focus on the kind of return. And the reality is 0:13:47.559 --> 0:13:49.880 actually said it a couple weekends ago. Right there has 0:13:49.920 --> 0:13:52.559 never been such a big gulf between what technology can 0:13:52.600 --> 0:13:55.480 do and then what's actually happening inside of the enterprise. 0:13:55.800 --> 0:13:58.760 We've got a survey coming out for Fortune five hundred execs. 0:13:58.760 --> 0:14:02.600 Seventy one percent are saying that their generative AI efforts have. 0:14:02.600 --> 0:14:04.760 Been very disappointing, very disappointing. 0:14:05.400 --> 0:14:07.760 And so you know, it absolutely is a big thing. 0:14:07.840 --> 0:14:09.000 Why is it disappointing? 0:14:09.000 --> 0:14:11.960 Why is it so hard to bring this once in 0:14:12.000 --> 0:14:15.240 a lifetime AI exuberance. 0:14:14.679 --> 0:14:16.040 To bear on your productivity? 0:14:16.480 --> 0:14:19.400 I think we are bringing knives to knives to a 0:14:19.400 --> 0:14:22.400 gunfight when it comes to actually building with generative AI. 0:14:22.600 --> 0:14:26.960 People are taking these really long kind of software development cycles, 0:14:27.000 --> 0:14:30.520 and it is taking these projects to the business, and 0:14:30.560 --> 0:14:32.760 business is saying this is not really good enough to 0:14:32.800 --> 0:14:35.840 actually write benefit my work. So we take a very 0:14:35.840 --> 0:14:39.240 different approach. Writer is purpose built for that kind of 0:14:39.280 --> 0:14:42.280 collaboration you need between the business and it to actually 0:14:42.320 --> 0:14:46.320 deliver generative AI projects and applications and agents that work 0:14:46.400 --> 0:14:47.280 for the business. 0:14:47.320 --> 0:14:49.600 So it's sort of legacy software is the issue here. 0:14:50.040 --> 0:14:54.320 So it's it's the legacy tooling of building right these 0:14:54.440 --> 0:14:58.080 these products, and so the lms are very very powerful 0:14:58.160 --> 0:15:00.640 that you need to wrap it with data, with workflow, 0:15:00.720 --> 0:15:03.720 with no how and that's just not happening right now 0:15:03.760 --> 0:15:05.640 and most IT departments in the enterprise. 0:15:05.840 --> 0:15:07.480 So help measure your success. 0:15:07.480 --> 0:15:09.600 How you articulating to those you're going out in pitch 0:15:09.680 --> 0:15:12.600 and saying you will get ROI with us. 0:15:12.800 --> 0:15:15.880 It's a very solution oriented approach. So you know, we're 0:15:15.920 --> 0:15:18.600 not talking about, hey, buy a full stack platform by 0:15:18.640 --> 0:15:21.240 our amazing lllms, look at us, how great we are. 0:15:21.480 --> 0:15:25.600 We're talking about actual end user productivity and end user 0:15:25.760 --> 0:15:28.240 use cases. So it's very solution oriented. 0:15:29.040 --> 0:15:32.040 What's also interesting is you've set yourself apart from a 0:15:32.080 --> 0:15:34.840 pretty crowded field. I'm going to say, like AGENTICKI and 0:15:34.960 --> 0:15:37.160 generative AI and the workplace and enterprise seems to be 0:15:37.240 --> 0:15:40.200 everyone's Lexican right now. But you're coming at it from look, 0:15:40.240 --> 0:15:42.400 we do something very different with the type of data 0:15:42.400 --> 0:15:44.480 we're using and the type of model building that we're 0:15:44.480 --> 0:15:46.280 going through. You're almost saying like, actually, you don't look 0:15:46.320 --> 0:15:48.360 at a reasoning model, look at our type of model. 0:15:48.400 --> 0:15:49.280 What is your type of model? 0:15:49.440 --> 0:15:52.200 Yeah, I mean, look at this exhibition floor. It's literally 0:15:52.360 --> 0:15:55.640 hundreds and hundreds of startups and it's such an exciting opportunity. 0:15:55.680 --> 0:15:58.560 But when it comes to the enterprise, they are looking 0:15:58.560 --> 0:16:00.520 at the vendors that they trust, the ones. 0:16:00.320 --> 0:16:02.000 That already have their data. 0:16:02.120 --> 0:16:04.320 But yesterday I was with a CIO of a fortune 0:16:04.360 --> 0:16:07.720 five hundred company where to hire an employee, they need 0:16:07.760 --> 0:16:10.840 to touch one hundred systems, only ten fifteen of them 0:16:10.920 --> 0:16:14.440 might be a service now application. Right, So we kind 0:16:14.440 --> 0:16:17.160 of see ourselves as that Switzerland that ties together a 0:16:17.160 --> 0:16:19.840 lot of disparate systems. They when it comes to building 0:16:19.880 --> 0:16:23.640 these agentic applications, and it really is that bringing together 0:16:23.720 --> 0:16:27.320 structured and unstructured data together to build the toolings. 0:16:27.600 --> 0:16:29.480 But when we had Jensen Wang come out with his 0:16:29.680 --> 0:16:31.680 latest earnings. He tried to paint the vision of a 0:16:31.720 --> 0:16:34.920 new scaling law that's here because of reasoning models. But 0:16:34.960 --> 0:16:37.880 you're actually taking issue with reasoning models in the general 0:16:37.880 --> 0:16:41.000 of AI application right now, you think that self evolving 0:16:41.080 --> 0:16:41.600 models is. 0:16:41.560 --> 0:16:43.200 Where we should go. Okny, articulate what that is? 0:16:43.240 --> 0:16:45.880 Yeah, I mean I love Jensen and he just wants 0:16:46.200 --> 0:16:48.760 more tokens, right, And he's absolutely right right in the 0:16:48.800 --> 0:16:51.120 spirit of what he's saying, which is the revolution is 0:16:51.280 --> 0:16:52.280 just getting started. 0:16:52.360 --> 0:16:53.320 Right, The vast. 0:16:53.080 --> 0:16:56.800 Majority of enterprises are still not benefiting from AI, So 0:16:56.880 --> 0:17:00.360 imagine what's going to happen once they do. Right when 0:17:00.400 --> 0:17:03.200 it comes to the actual LMS, Right, what we're saying 0:17:03.320 --> 0:17:07.520 is the path to superintelligence is through self evolving models. 0:17:07.600 --> 0:17:10.399 Models that can update their training data in real time 0:17:10.800 --> 0:17:14.520 in response to making a mistake and then getting nudged. 0:17:14.200 --> 0:17:17.160 By a user. You didn't get our process right, right. 0:17:17.200 --> 0:17:19.520 If we need to go out and retrain or fine 0:17:19.520 --> 0:17:22.280 tune or you know, rebuild a RAG pipeline every time 0:17:22.359 --> 0:17:24.199 a model is wrong, we are never going to get 0:17:24.240 --> 0:17:26.120 to the kind of superintelligence that's possible. 0:17:26.400 --> 0:17:28.520 What about the talent that's needed at the moment, We've 0:17:28.520 --> 0:17:31.120 got a new administration that seems to be cutting funding 0:17:31.680 --> 0:17:35.960 for science in the United States, for universities and next 0:17:36.040 --> 0:17:36.719 level education. 0:17:36.840 --> 0:17:38.960 Is that something that worries you? Or is talent still rich? 0:17:39.359 --> 0:17:42.600 I mean, talent is a struggle no matter you know 0:17:42.680 --> 0:17:46.520 what the political environment. We just opened up our London 0:17:46.560 --> 0:17:49.920 and Singapore offices for exactly this reason, to be able 0:17:49.920 --> 0:17:52.479 to hire outside of the United States. Most of our 0:17:52.520 --> 0:17:54.919 four hundred employees are here, but as we look to 0:17:54.960 --> 0:17:56.320 double over the next year, we. 0:17:56.280 --> 0:17:59.639 Are definitely going to be growing internationally. What about inorganic 0:17:59.680 --> 0:18:02.840 versus organic? Every time you come on, I say, whoever 0:18:03.000 --> 0:18:05.400 startups you're looking at, what other aqua hyers can you do? 0:18:05.520 --> 0:18:08.000 Is it still rich pickings for you to buy other businesses? 0:18:08.240 --> 0:18:10.760 There are literally hundreds of startups that are doing really, 0:18:10.800 --> 0:18:13.760 really exciting things. They are finding it difficult to sell 0:18:13.840 --> 0:18:17.280 into the enterprise. We have kind of risen above the noise, 0:18:17.400 --> 0:18:20.159 and so there have been, you know, some really interesting 0:18:20.200 --> 0:18:22.399 things that we're looking at as bolt on acquisitions to 0:18:22.440 --> 0:18:23.399 the Writer platform. 0:18:23.680 --> 0:18:25.840 Come on when you can announce some of them, maybe, 0:18:25.840 --> 0:18:27.600 but it's always great to catch up with her, the 0:18:27.720 --> 0:18:31.320 CEO of Writer. Now let's return to where we're going next. 0:18:31.359 --> 0:18:33.159 Much more to expect from Human x conference, but in 0:18:33.200 --> 0:18:35.840 the interim it looks for happened to Oracle shares after 0:18:35.840 --> 0:18:37.760 they had their numbers after the bell yesterday, there was 0:18:37.800 --> 0:18:41.000 disappointment that eight percent revenue growth that was hopeful was 0:18:41.040 --> 0:18:41.760 not quite matched. 0:18:41.960 --> 0:18:43.080 We're off by five percent. 0:18:43.119 --> 0:18:45.439