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Speaker 1: From the heart where innovation, money and power. Collie in

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Speaker 1: Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde

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Speaker 1: and Ed lud Love.

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Speaker 2: I'm Caroline Hyde at Bloomberg's Weld headquarters in New York

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Speaker 2: and Ourmed Ludlow in San Francisco.

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Speaker 3: This is Bloomberg Technology.

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Speaker 2: Coming up and changing of the guard. Over at Twitter,

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Speaker 2: Elon Musk announces he's stepping aside as CEO. We'll bring

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Speaker 2: in the details on the successor Claus.

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Speaker 4: We'll talk artificial intelligence and how companies are implementing guardrails

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Speaker 4: to deliver and embed AI responsibly.

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Speaker 2: And soft Bank has begun testing investor appetite for the

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Speaker 2: IPO of ARM, seeking as much as ten billion dollars.

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Speaker 2: Will bring you that and so much more this hour

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Speaker 2: as we look at what market sentiment is like to

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Speaker 2: round out this week, pretty dire, really collapsing on the

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Speaker 2: ten am mark here in the United States, as we

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Speaker 2: get the University of Michigan sentiment from the consumer right

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Speaker 2: now that still sees inflation at about three percent for

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Speaker 2: the next five to ten years. That inflationary pressure still

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Speaker 2: pushing down there for on the tech stocks on the day,

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Speaker 2: we're seeing the two year yield actually rise some nine

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Speaker 2: basis points. How much is a federal reserve going to

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Speaker 2: have to tackle that embedded view of the consumer Aware

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Speaker 2: inflation is heading, of course, we've also got anxiety about

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Speaker 2: a ceiling about the banking system, plenty still to chew

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Speaker 2: on as we head towards the weekend. Interesting moves in

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Speaker 2: the emerging markets as well. Keep an eye on Turkey,

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Speaker 2: which looks pretty buoyant from the banking system there as

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Speaker 2: they look towards a key vote. Could Ernuwan be waved

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Speaker 2: goodbye to this weekend? And also look at South Africa.

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Speaker 2: We've got the rand really collapsing on the day as

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Speaker 2: we see concerns about the relationship between South Africa and

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Speaker 2: the US, all to do with Russia supply of arms.

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Speaker 2: Let's pick it on agear, because I want to look

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Speaker 2: at what's happening in terms of crypto and dollar has

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Speaker 2: had a real rally this week on the back of

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Speaker 2: some of these inflation concerns and the slowdown in the

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Speaker 2: overall jobs data as well. We're seeing bitcoin off by

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Speaker 2: nine percent on the course of the week, ed quite

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Speaker 2: a sell off, in fact, the first back to back

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Speaker 2: weekly loss a bitcoin since back in March. But dive

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Speaker 2: into some of the micromovers and starts today.

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Speaker 4: Yeah, look, it's a kind of markets day where there's

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Speaker 4: a lack of news headlines, particularly in the technology sector.

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Speaker 4: I look at some of the megacaps. Actually, one mover

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Speaker 4: to the upside is Alphabet, the parent of Google, up

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Speaker 4: by six tenths of a percent. You see some of

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Speaker 4: its megacap peers moving to the downside, dragging down the

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Speaker 4: nas That one hundred is an example for the Alphabet

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Speaker 4: actually on track for its best week since mid March.

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Speaker 4: I think there's a lot of momentum in this name

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Speaker 4: from all the news we got from the Google io

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Speaker 4: around what they're actually doing in AI. This show Bluemberg

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Speaker 4: Technology today is going to have.

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Speaker 3: A big AI theme.

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Speaker 4: But we're not seeing sort of news driven moves in

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Speaker 4: the markets. Apart from Tesla. Let's take a look at

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Speaker 4: this stock. It's interesting had been higher at the open,

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Speaker 4: markedly higher, up by a couple of percentage points. We're

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Speaker 4: now softer by one point four percent. Three factors in

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Speaker 4: the market, one the principal one being we do have

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Speaker 4: a new CEO at Twitter, Linda Yakarino. We will get

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Speaker 4: into that momentarily. Also news elsewhere that they've raised prices

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Speaker 4: incrementally on the Model Y in the US two hundred

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Speaker 4: and fifty dollars and on some of the more expensive

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Speaker 4: models like Model why sorry, more expensive models like the

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Speaker 4: Model Let's having a one thousand dollar price bump. In China,

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Speaker 4: there is a soft recall for a software fix on

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Speaker 4: Regenerative breaking one point one million units or so. A

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Speaker 4: lot happening. But we're down one and a half percent

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Speaker 4: on Tesla. I think a lot of this has the

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Speaker 4: market's passing. What's happening at Twitter Elon Musk's other company.

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Speaker 2: Yeah, that's stick into that, of course, because he is

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Speaker 2: announcing said it last night. In fact, stepping down, stepping

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Speaker 2: back is Twitter CEO in the next coming weeks, and

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Speaker 2: reports now name NBC ad chief Linda Yacarino as his

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Speaker 2: successor for more let's bring him luez Asha Counts interestingly,

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Speaker 2: comcast down a little bit on the news that they're

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Speaker 2: losing this ad chief over at NBC Universal. But we

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Speaker 2: do see finally what someone who gets advertising been paired

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Speaker 2: with someone who gets the technology.

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Speaker 5: Yeah, it's huge, right, Twitter is advertising revenue has declined

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Speaker 5: about fifty percent maybe more since must have over he's

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Speaker 5: really alienated a lot of advertisers with some of his

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Speaker 5: erratic decision making and things like getting into a spat

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Speaker 5: with the ex employee who was disabled and making comments

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Speaker 5: that were perceived by some to be sexist against women,

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Speaker 5: and all these sorts of things have really driven advertisers away.

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Speaker 5: So bringing in someone like Linda, who has such deep

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Speaker 5: experience in the advertising industry, has those relationships, has an

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Speaker 5: amazing reputation like that could be huge for Twitter and

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Speaker 5: really rebuilding trust with advertisers.

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Speaker 4: Caroline Asha Elon Musk has tweeted in the last fifteen minutes,

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Speaker 4: let's bring that up and show our audience. He says,

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Speaker 4: I am excited to welcome Linda Yakarino as the new

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Speaker 4: CEO of Twitter. So there you have it, official confirmation.

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Speaker 4: He tags Linda Yakarino and says that you'll focus primarily

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Speaker 4: on business operations while he focuses on product design, new technology.

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Speaker 4: Looking forward to working with Linda to transform this platform

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Speaker 4: into X the everything app. That is the kind of

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Speaker 4: key key part right that this is one step to

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Speaker 4: a bigger project.

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Speaker 3: Asia. Yeah.

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Speaker 5: Musk has talked a lot about this idea of having

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Speaker 5: an everything app, right, modeling on something like we chat

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Speaker 5: in China where you can book events and tickets and

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Speaker 5: pay for things. So he's talked a lot about that

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Speaker 5: and sort will be interesting to see if he's actually

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Speaker 5: able to execute on that idea. And then we know, right,

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Speaker 5: a number of weeks ago he put Twitter underneath this

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Speaker 5: holding company called X.

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Speaker 6: Right, so technically Twitter Inc.

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Speaker 5: Doesn't exist, but it's underneath this company called X and

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Speaker 5: it's part of his vision to sort of make Twitter

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Speaker 5: an app that can do everything.

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Speaker 2: I've got to sort of reflect on all the messiness

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Speaker 2: of all of this. So a shit because if we

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Speaker 2: reflect on what's just happened to comodcasts NBC Universal, they're

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Speaker 2: about to go to their advertising community, they're about to

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Speaker 2: have their upfronts. They're about to be pitching how you

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Speaker 2: should be lining up your advertising against some of their

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Speaker 2: online offerings, and particularly on Peacock, and the main women

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Speaker 2: to do that has just exited stage left in quite

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Speaker 2: a sort of erratic manner. It can't be a great

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Speaker 2: end to that part of her career and start on

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Speaker 2: the next one.

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Speaker 6: Yeah, it has to be difficult, right.

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Speaker 5: She was really integral to NBC efforts like Peacock, which

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Speaker 5: is you know, the ad supporters dreaming service, to even

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Speaker 5: establishing partnerships and relationships with some of the tech companies

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Speaker 5: including Twitter, Snapchat, YouTube and others, and then even huge

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Speaker 5: events like the Super Bowl in the Olympic Games. So

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Speaker 5: she had a really really important role at NBCU, and

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Speaker 5: so I can imagine it's going to be tough now

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Speaker 5: that that she's leaving at this last moment when she

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Speaker 5: had a lot of those relationships and was responsible for

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Speaker 5: a lot of those relationships with advertisers. Good for Twitter,

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Speaker 5: but obviously really tough for NBCU, which has had its

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Speaker 5: own sort of internal praders with the past as well.

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Speaker 4: Yeah, with the departure of their leader in recent weeks.

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Speaker 4: It's interesting the CV Asia. We reported in October that

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Speaker 4: when Elon Musk brought in those private investors for ex

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Speaker 4: Corps now EX Holdings, he stayed in writing the plan

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Speaker 4: to take the company known as Twitter public again in

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Speaker 4: a three to five year horizon. But you look at

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Speaker 4: Lindy Yakarino, she doesn't have CEO experience and there are

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Speaker 4: still advertiser concerns, right, I mean, just give us the

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Speaker 4: latest on the advertiser flight and the impact of revenue.

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Speaker 5: Yeah, so the last time we looked at the numbers

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Speaker 5: here at Bloomberg, right, it was still a large majority

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Speaker 5: of advertisers on Twitter had left. So advertising revenue was

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Speaker 5: down amongst the top ten advertisers from like seventy million

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Speaker 5: to something like seven million, So it was a huge,

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Speaker 5: huge decline. And even today, advertisers that I've spoken to

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Speaker 5: are still a little bit concerned about brand safety. So

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Speaker 5: some of you may have noticed on Twitter there seems

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Speaker 5: to have been almost a rise in misinformation and hate speech.

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Speaker 5: Advertisers are concerned about that. They're concerned about some of

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Speaker 5: must own tweets himself and some of his erratic decision making,

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Speaker 5: and so advertisers still have a lot of concerns about Twitter.

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Speaker 5: And honestly, Twitter was not always necessarily a top advertising

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Speaker 5: destination anyways, just because it's a lot smaller than its

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Speaker 5: competitors like Meta. So there's still going to be a

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Speaker 5: lot of challenges in getting advertisers back and really ensuring

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Speaker 5: them that when they put an advertisement on Twitter, it's

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Speaker 5: not going to appear next to some misinformation or fake news,

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Speaker 5: that it's going to appear next to tweets that are

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Speaker 5: saved and are not going to damage their brand reputation.

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Speaker 4: All right, Bloomberg seish accounts, thank you so much, busy

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Speaker 4: twenty four hours for you and I both so Carral

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Speaker 4: investors poured nearly four billion dollars into tech stocks over

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Speaker 4: the course of the week. But Bank of America is

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Speaker 4: splashing cold water on this rally, saying this prolonged period

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Speaker 4: of economic decline in the US were royal technology stocks

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Speaker 4: at the time where they're attracting a way of investor money.

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Speaker 4: A team led by Michael Harnett expects a recession to

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Speaker 4: crack credit and tech just as it did back in

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Speaker 4: two thousand and eight. And there's so many eye to

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Speaker 4: this debate, right. There's those that look at the megacaps

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Speaker 4: and say balance sheet and trench market position, look at

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Speaker 4: the activity in the corporate credit sector, the demand detect

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Speaker 4: is there. Bank of America things differently.

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Speaker 2: Yeah. I mean, whether you see big tech as some

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Speaker 2: sort of haven in downturns or whether you see it

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Speaker 2: as a bet still on growth. And let's just look

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Speaker 2: at the growthier part of this, because the exuberants around

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Speaker 2: a lot of these tech stocks I think of in

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Speaker 2: video I think has some of the chick names. It's

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Speaker 2: largely on the back of artificial intelligence, isn't it? And

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Speaker 2: I thought there was a great note from Sotschen today.

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Speaker 2: Key Stretchers is over there saying, look, actually all the

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Speaker 2: main driving force of the equity rally this year and

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Speaker 2: the SMP, it's all artificial intelligence. It's a strip away

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Speaker 2: that sort of euphoria around certain AI stocks and actually

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Speaker 2: the SMP would be in the red for this year.

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Speaker 2: I'm loving this from Nash Cabra. It was really interesting.

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Speaker 2: He's riding over in London, but they really cite the

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Speaker 2: ninety six percent increase and in video overall, but Alphabet

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Speaker 2: the Microsoft's what would happen if we sort of took

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Speaker 2: away some of Alxuberant said.

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Speaker 3: We saw it in the private markets.

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Speaker 4: First, think back weeks months ago, all the money going

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Speaker 4: to AI startups, and then the last three weeks what

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Speaker 4: happened earning season. And this is what I've been looking

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Speaker 4: at on the Bloomberg terminal, which is a fantastic chart

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Speaker 4: that to how our chart's chief and I have been

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Speaker 4: passing over. So go back all the way to twenty fifteen,

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Speaker 4: and this is a basket of around twenty of the

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Speaker 4: biggest technology names across the S and P five hundred

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Speaker 4: and as that one hundred like nada zero mentions of

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Speaker 4: the phrase artificial intelligence or AI.

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Speaker 3: Fast forward to the first quarter of.

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Speaker 4: Twenty twenty three and across the earnings cool transcript. That's

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Speaker 4: what we've analyzed, more than two hundred mentions just for

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Speaker 4: that basket of twenty companies. That's a massive ramp up

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Speaker 4: in activity. It's been gaining. But look, first quarter of

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Speaker 4: twenty twenty three, this is the here and now. AI

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Speaker 4: is everything for corporate America.

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Speaker 2: It is, but with that exuberance comes for many a

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Speaker 2: healthy Joseph caution, A healthy Dooseph, how do you inject

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Speaker 2: artificial intelligence into your business model in this safe way?

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Speaker 2: We're going to have that exact conversation right now, ed

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Speaker 2: because Navrida sings with us AI found a CEO GOODEOII

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Speaker 2: is actually a responsible oftificial intelligence governance platform. Basically, you

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Speaker 2: are empowering organizations to what delivered to embed AI, but

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Speaker 2: do it responsibly, do it proactively, monitor it, manage it.

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Speaker 2: And I'm interested in Nevrena, how many companies you think

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Speaker 2: are actually holding back on interjecting generative AI because they

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Speaker 2: are worried about some of the risks that are involved.

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Speaker 7: Thank you so much for having me And what a

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Speaker 7: critical topic right now, Carolyn, VA are seeing across the industry.

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Speaker 7: Right now, generative AI already reinventing businesses. The top of

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Speaker 7: mind questions for many of our customers is, you know,

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Speaker 7: how can they continue innovating responsibly or get crushed by

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Speaker 7: this generative AI wave. So right now, the top of

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Speaker 7: mind question that we are hearing across our customers and

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Speaker 7: partners is how can I adopt GENITIVEVII confidentally and responsibly

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Speaker 7: to make sure that the risks like copyright, appy IP leakage, plagiarism, etc.

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Speaker 6: Are under check.

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Speaker 2: Your background is fascinating because you're building this way of

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Speaker 2: monitoring and doing it responsibly. You used to be a

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Speaker 2: director of product over at Microsoft. Thinking about the ways

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Speaker 2: in which AI can be commercialized. Is corporate America at

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Speaker 2: this moment being thoughtful enough? Is VC private money being

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Speaker 2: thoughtful enough about the guardrails and known to go in

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Speaker 2: place at the same time as the exuberance around just

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Speaker 2: the innovation.

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Speaker 7: You know, Carolyn, there is some momentum, but it needs

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Speaker 7: to be more. As you can imagine, Now it's not

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Speaker 7: about just winning the DEI. It is also about how

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Speaker 7: you win the DEI. And this is where you're going

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Speaker 7: to start seeing a lot of differentiation among organizations that

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Speaker 7: actually are more just leaders in.

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Speaker 6: This age of AI.

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Speaker 7: Where there is investment in the I governance, where there's

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Speaker 7: investment in oversight, whether investment is not in not only

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Speaker 7: understanding AI risk but managing them at scale while also

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Speaker 7: keeping an eye out to future regular that's where we

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Speaker 7: are going to see the wins emerging in the ecosystem.

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Speaker 7: So AI governance is certainly underfunded and certainly you know,

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Speaker 7: becoming top of mind, but we need to see more

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Speaker 7: progress and momentum in this space.

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Speaker 4: And avery in a good morning to you government compliance

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Speaker 4: doing business with the public sector. What level of government

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Speaker 4: clients does CREDO have. Are you able to offer your

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Speaker 4: services to the federal government as an example?

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Speaker 7: Absolutely?

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Speaker 8: Ed.

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Speaker 7: So recently we announced a very strong partnership with booths

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Speaker 7: Allen that exactly that focus. As you can imagine, there's

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Speaker 7: been an emerging discussion Invice House around how do you

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Speaker 7: know make sure that frameworks like billa frids are implemented

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Speaker 7: appropriately across US agencies so that we're always keeping you know,

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Speaker 7: US citizens right. Central to this conversation, the creator AI

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Speaker 7: right now is working across United States government as well

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Speaker 7: as this partners like Booze Alan so that we can

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Speaker 7: bring AI governance as a mechanism for them to activate

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Speaker 7: AI adoption. But due to again safely and.

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Speaker 4: Responsibly, there's a debate within the artificial intelligence community AI

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Speaker 4: native or AI adjacent startup founders basically looking at regulation

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Speaker 4: and saying, well, if we think about healthcare or education,

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Speaker 4: those are highly regulated industries where the consumer faces high

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Speaker 4: prices or there are still risks in place. What is

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Speaker 4: the benefit of focusing on a commercial guard rail versus

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Speaker 4: seeking comprehensive regulation.

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Speaker 7: Yeah, you know, ed, I think this is where we

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Speaker 7: have to really strike a right balance between innovation and

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Speaker 7: regulation that supports that innovation. And you know, there's global

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Speaker 7: initiatives that I'm actually actively involved in. TRETO as involved

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Speaker 7: in again to make sure that AI governance and oversights

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Speaker 7: are cross the entire value chain from design, development to

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Speaker 7: procurement and.

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Speaker 6: New of EI systems happen.

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Speaker 7: And so you know, this is an opportunity for us

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Speaker 7: to really bring in private and public sectors together to

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Speaker 7: ensure that policy goes hand in hand with innovation, so

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Speaker 7: that it can become an accelerant rather than a deterrent

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Speaker 7: to the THEI innovation.

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Speaker 4: Never in a sing creto AI CEO, thank you for

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Speaker 4: your time. Now sticking with AI, the music industry's biggest

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Speaker 4: threat now is AI generated songs that are going viral.

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Speaker 4: Industry executives, most notably Spotify CEO Daniel Eck, have been

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Speaker 4: quick to promise heightened vigilance on behalf of labels, artists,

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Speaker 4: and copyright holders. But while the platforms are sizing up

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Speaker 4: the new disruptive force, labels and managers say that fraud

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Speaker 4: is already rampant. User generated content and bogus tracks may

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Speaker 4: now can account for ten percent of all streams.

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Speaker 2: Karen, amazing those statistics. I mean, well, let's shift get

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Speaker 2: us a little bit ed. We've going to go to

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Speaker 2: an old school in the world of technology. We're going

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Speaker 2: to Squarespace with the man who built it twenty years ago.

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Speaker 2: The CEO howses website still such a prominent building platform.

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Speaker 2: How's it developing tools necessary to serve small businesses? And

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Speaker 2: let's face it, we'll ask a question about AI or two.

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Speaker 2: I'm sure that's next. As a Bloomberg.

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Speaker 4: Squarespace, known for its suite of services in website building,

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Speaker 4: domains and marketing tools, is reaffirming's mission to serve small

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Speaker 4: businesses and creatives after twenty years of operations. We welcome

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Speaker 4: its founder and CEO, Anthony Casalina to the program. Anthony,

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Speaker 4: Good afternoon to you out in New York. Good morning

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Speaker 4: here from in San Francisco. You had earnings on Tuesday

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Speaker 4: and you raised four year guidance for revenue, and I

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Speaker 4: want to get right to it and ask how much

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Speaker 4: of that confidence is driven by the moment we're having

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Speaker 4: in AI.

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Speaker 9: Yeah.

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Speaker 10: First off, thank you for having me, and you know,

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Speaker 10: just a fantastic quarter for us. We were able to

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Speaker 10: beat and raise, maintain our strong cash flow profile, and

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Speaker 10: continue to accelerate growth, which is really fantastic. Another point

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Speaker 10: on the quarter is that trial starts, a number of

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Speaker 10: people trying our core product was the highest of any quarter,

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Speaker 10: even including pandemic.

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Speaker 1: Quarters, which were record high for us.

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Speaker 10: You know, as you mentioned and as I you know,

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Speaker 10: spent a lot of time talking about on our earnings call,

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Speaker 10: AI is something that's you know, we actually know a

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Speaker 10: lot about our industry is no stranger to it.

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Speaker 1: I would say two things about it.

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Speaker 10: One is sort of you know where scort space is

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Speaker 10: right now and where we're going in terms of where

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Speaker 10: we take things with AI. So Scortespace stopped the need

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Speaker 10: for a lot of people who use our platform for

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Speaker 10: programming websites about two decades ago, so that's not something we,

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Speaker 10: you know, are planning on necessarily using AI for at

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Speaker 10: this time. You know, once you get start up with scores,

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Speaker 10: we do a lot more than just generate a website.

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Speaker 10: We hosted, deal with bandwidth, cybersecurity, DDoS protection, dns as

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Speaker 10: a seal, certificates, domain registration, you know, just a myriad

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Speaker 10: of things that you need after you, you know, have

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Speaker 10: designed the website, and we do that for sixteen dollars

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Speaker 10: a month as a starting point, so you know that

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Speaker 10: stuff is as relevant as ever for our customers. I'll

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Speaker 10: say two things about how we've been incorporating AI in

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Speaker 10: large language models today and where we're going to be

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Speaker 10: incorporating them in the future. So one of the main

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Speaker 10: reasons why people have a trouble starting with scorespace is

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Speaker 10: they say their content is not ready, they don't have

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Speaker 10: the images they need for their site. They don't know

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Speaker 10: how to write an about page, they don't have their copyright.

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Speaker 10: So actually, this past Monday, right before earnings, we introduced

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Speaker 10: chat Beat GPT based large language model content generation in

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Speaker 10: all of our text fields and we launch that and

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Speaker 10: beta to our circle community.

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Speaker 1: So we're super excited about that.

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Speaker 2: The other place, did that moment that you announced that

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Speaker 2: you were integrating with open AI, did that clearly make

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Speaker 2: a lift? Did your people start to turn to say

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Speaker 2: this is exciting, this is going to change dull or

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Speaker 2: are they just like yes, obviously?

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Speaker 10: I think it was more of yes, obviously. You know,

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Speaker 10: we've been aware of these models for months. I mean,

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Speaker 10: AI has been part of setup in our industry for

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Speaker 10: I believe about eight years, so we've been looking at

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Speaker 10: it extensively, which kind of brings me to the second

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Speaker 10: place where we're incorporating AI. In Q one, we launched

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Speaker 10: something called Scorespace Blueprint, which lets people get started building

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Speaker 10: a template and bypassing our template store, that's a perfect

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Speaker 10: spot for us to integrate essentially prompt engineering on top

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Speaker 10: of a large language model. You can tell us more

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Speaker 10: about what you want and we can generate those sections

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Speaker 10: for you so that you don't have to be picking

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Speaker 10: a full template out at once. So perfect place is

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Speaker 10: where we expect to see a lot of AI tailwinds.

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Speaker 2: It's interesting, isn't it, ed at the moment that poor

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Speaker 2: people come on to want to talk about their general

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Speaker 2: earnings and we go straight for the AI focus. But

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Speaker 2: a lot of this is about how on earth ed

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Speaker 2: I think people are going to be coding in the future.

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Speaker 2: People are going to be burning in the future.

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Speaker 4: Anthy I have to ask you on self reflection how

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Speaker 4: much you feel an existential threat. The debate that I

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Speaker 4: hear daily is do we even need computer scientists anymore?

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Speaker 3: Do we need coding?

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Speaker 4: I know that you explained that you've taken that process

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Speaker 4: away twenty years ago, but you look at the demos

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Speaker 4: from Google on Wednesday.

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Speaker 3: I was there.

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Speaker 4: Look at what open ai demonstrates. Anyone can request code

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Speaker 4: and do anything with the code generated. So what's the

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Speaker 4: point in squarespace?

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Speaker 1: Oh?

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Speaker 10: I mean the point in squarespace is the list of

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Speaker 10: things I rattled.

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Speaker 1: After you have the code.

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Speaker 10: After you have the code, you have to hosted, provide

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Speaker 10: bandwidth storage, get a content, delivering a network on there,

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Speaker 10: prevent against data as attacks, get DNS running, get your

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Speaker 10: domain running. Squarespace does our ad for sixteen dollars a month.

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Speaker 10: If you were to also then pretend, not pretend, but

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Speaker 10: believe that all of our you know, all the programmers

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Speaker 10: in the world are suddenly going to be out of jobs,

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Speaker 10: which I certainly don't believe, then it would be very

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Speaker 10: interesting because then we would be modeling our company at

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Speaker 10: what something like a seventy percent free cash flow after

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Speaker 10: we can run it without employees or something that's nothing

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Speaker 10: we believe in. You know, we we have a fantastic

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Speaker 10: creative and engineering team and we're building that team not

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Speaker 10: thinking about a world where they don't exist. Further, in

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Speaker 10: other areas, like you know, customer support, We've had AI

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Speaker 10: based chatbots implemented for over five years. We monitored reflection relates.

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Speaker 10: Those are only better with GPT models, So we anticipate. Yeah,

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Speaker 10: really a lot of tailwinds from these technologies being incorporated

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Speaker 10: in the Squarespace, in the content generation, in a setup process,

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Speaker 10: and we think it doesn't really crack much at all

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Speaker 10: from the infrastructure we provide.

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Speaker 2: Anthony, great to have you, thanks for talking us to

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Speaker 2: Anthony Casselina that his CEO and founder a Square Space

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Speaker 2: from New York. From San Francisco. Listen, bloomg.

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Speaker 3: Welcome back to Bloomberg Technology. I med Love in San Francisco.

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Speaker 2: I'm Caroline hid in New York. Let's get to these

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Speaker 2: markets today, ed, because it's an interesting one as we

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Speaker 2: just see a little bit of caution as to go

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Speaker 2: into the weekend. We have the macro data looking a

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Speaker 2: little ugly if you look at the inflationary pressures, the

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Speaker 2: perspective of the consumer, the eumish data, we're down by

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Speaker 2: seven ten percent now, so tech takes a hit when

439
00:22:32,560 --> 00:22:34,439
Speaker 2: we've got inflation front and center because we think the

440
00:22:34,440 --> 00:22:36,399
Speaker 2: Fed's going to have to hike two year yield up

441
00:22:36,400 --> 00:22:38,320
Speaker 2: eight basis points. In the back of that bitcoint actually

442
00:22:38,320 --> 00:22:40,320
Speaker 2: having a bit of an ugly week and indeed down

443
00:22:40,400 --> 00:22:42,080
Speaker 2: some two percent on the day. It's down more than

444
00:22:42,119 --> 00:22:44,400
Speaker 2: ten percent nine percent over the course of the training week.

445
00:22:44,440 --> 00:22:46,480
Speaker 2: That's because of the strength in the US dollar as

446
00:22:46,520 --> 00:22:49,520
Speaker 2: well as warries, perhaps a little bit about the liquidity

447
00:22:49,640 --> 00:22:52,040
Speaker 2: out there and some of the regulatory risk. Let's plick

448
00:22:52,040 --> 00:22:53,920
Speaker 2: it on and look at how individual stocks are doing

449
00:22:53,920 --> 00:22:55,520
Speaker 2: on the day. Because Google, I have to say you

450
00:22:55,520 --> 00:22:57,560
Speaker 2: were there on Wednesday, Google, I owe, this has really

451
00:22:58,000 --> 00:23:01,159
Speaker 2: lit the fire beneath some Google Stock of late and

452
00:23:01,160 --> 00:23:03,320
Speaker 2: we're seeing Alphabet shares that seven tenths of an percent

453
00:23:03,359 --> 00:23:05,480
Speaker 2: and one of the biggest contributors to the points on

454
00:23:05,520 --> 00:23:07,800
Speaker 2: the upside at leads for some of the benchmarks. Today

455
00:23:08,000 --> 00:23:10,000
Speaker 2: we're seeing it up what ten percent of the course

456
00:23:10,000 --> 00:23:11,840
Speaker 2: of the week, best week since the end of March.

457
00:23:12,080 --> 00:23:15,080
Speaker 2: First Solar interesting buying a company in Europe. We don't

458
00:23:15,080 --> 00:23:17,119
Speaker 2: often see a company really shoot higher when it's spending

459
00:23:17,119 --> 00:23:20,040
Speaker 2: some money, but it seems to be really net additive

460
00:23:20,080 --> 00:23:22,639
Speaker 2: to the overall business offering. We're up twenty three percent

461
00:23:22,840 --> 00:23:25,280
Speaker 2: on First Solar, and I'm looking at Comcast down by

462
00:23:25,320 --> 00:23:27,840
Speaker 2: three tens percent. Of course, the owner of NBC Universal,

463
00:23:27,880 --> 00:23:30,560
Speaker 2: which today we understand ed, is having to say farewell

464
00:23:30,600 --> 00:23:33,760
Speaker 2: to their ad chief of MBC and we know where

465
00:23:33,760 --> 00:23:35,720
Speaker 2: they're going. Twitter. We'll talk about that in a minute.

466
00:23:36,240 --> 00:23:36,720
Speaker 1: We will.

467
00:23:36,800 --> 00:23:39,280
Speaker 4: Those are your tech markets. These are your tech headlines

468
00:23:39,320 --> 00:23:42,080
Speaker 4: in talking tech. First up, vin Fast, the ev maker

469
00:23:42,119 --> 00:23:45,639
Speaker 4: founded by Vietnam's richest person, going public via spack in

470
00:23:45,680 --> 00:23:48,960
Speaker 4: what would be the largest ever US listing buyer company

471
00:23:49,080 --> 00:23:51,760
Speaker 4: from Southeast Asia. The deal will give vin Fast and

472
00:23:51,800 --> 00:23:55,760
Speaker 4: equity value of about twenty three billion dollars. Sticking with

473
00:23:55,800 --> 00:23:58,919
Speaker 4: EV's Tesla facing issues in China, the TV maker will

474
00:23:58,960 --> 00:24:01,240
Speaker 4: need to fix almost every car it's ever sold there

475
00:24:01,520 --> 00:24:04,119
Speaker 4: due to a breaking and acceleration defect. Is actually on

476
00:24:04,160 --> 00:24:07,560
Speaker 4: the generative regenerative breaking. It could increase the crash of

477
00:24:07,960 --> 00:24:10,240
Speaker 4: a risk of a crash according to the regulator there,

478
00:24:10,400 --> 00:24:13,720
Speaker 4: impacting about one point one million vehicles. But it is

479
00:24:13,760 --> 00:24:17,040
Speaker 4: a software over the air update that we should point out.

480
00:24:17,080 --> 00:24:19,760
Speaker 4: And back in the US, Tesla has tweaked prices of

481
00:24:19,760 --> 00:24:22,280
Speaker 4: its vehicles for the third time in less than a month,

482
00:24:22,359 --> 00:24:25,000
Speaker 4: adding one thousand dollars to the prices of its Model

483
00:24:25,200 --> 00:24:27,520
Speaker 4: X and Model S. The base model s Now costs

484
00:24:27,520 --> 00:24:30,359
Speaker 4: a little more than eighty eight thousand dollars, still about

485
00:24:30,359 --> 00:24:33,320
Speaker 4: sixteen thousand less than it was at the start of

486
00:24:33,359 --> 00:24:33,680
Speaker 4: the year.

487
00:24:34,080 --> 00:24:35,800
Speaker 2: Carac Yeah, and we've got to sit with sort of

488
00:24:35,800 --> 00:24:38,560
Speaker 2: the Tesla theme, or at least its leader, because Tesla's

489
00:24:38,640 --> 00:24:41,560
Speaker 2: shares have been battered around a little bit today because well,

490
00:24:41,600 --> 00:24:44,240
Speaker 2: maybe its focus of Elon Musk is going to turn

491
00:24:44,280 --> 00:24:46,919
Speaker 2: his attention back to it. Why because maybe he can

492
00:24:46,960 --> 00:24:48,439
Speaker 2: take his foot off the gas a little bit when

493
00:24:48,480 --> 00:24:51,120
Speaker 2: it comes to leading Twitter. Of course, let's talk about

494
00:24:51,160 --> 00:24:53,640
Speaker 2: all of this when we're thinking about the leadership at Twitter.

495
00:24:53,680 --> 00:24:56,760
Speaker 2: Who's coming in with Cla diez ortis of course taking

496
00:24:57,160 --> 00:24:59,640
Speaker 2: the focus on the change of leadership and the future

497
00:24:59,640 --> 00:25:03,000
Speaker 2: of the so social media giant. And you're now, of course,

498
00:25:03,040 --> 00:25:07,879
Speaker 2: Kwina Perkins, VC SCOUT, former Twitter executive. What are you

499
00:25:08,280 --> 00:25:11,880
Speaker 2: making of the fact that, ultimately Twitter's had to realize

500
00:25:12,160 --> 00:25:14,439
Speaker 2: that Elon Musk is great on the tech side of things,

501
00:25:14,840 --> 00:25:17,080
Speaker 2: but they need someone who gets the advertising side of things.

502
00:25:18,240 --> 00:25:19,480
Speaker 6: I think it's so interesting.

503
00:25:19,520 --> 00:25:21,520
Speaker 11: I think, you know, Elon Musk may be a genius,

504
00:25:21,560 --> 00:25:24,439
Speaker 11: but we all make mistakes, including Elon, and it's just

505
00:25:24,560 --> 00:25:27,280
Speaker 11: very interesting to see sort of six months into this journey,

506
00:25:27,320 --> 00:25:31,479
Speaker 11: his realization that advertising, which made up ninety percent of

507
00:25:31,520 --> 00:25:35,399
Speaker 11: Twitter's business, really does matter and keeping those advertisers happy

508
00:25:35,440 --> 00:25:38,240
Speaker 11: and close is really important. And so this move is

509
00:25:38,400 --> 00:25:41,720
Speaker 11: just absolutely a step in that direction, a step in

510
00:25:41,800 --> 00:25:44,399
Speaker 11: hopefully a positive direction to turn around Twitter as a

511
00:25:44,400 --> 00:25:47,800
Speaker 11: business and bring back advertisers to the platform.

512
00:25:48,359 --> 00:25:52,439
Speaker 4: Claire Linda Yakarino, what's your reaction to her as a

513
00:25:52,480 --> 00:25:53,520
Speaker 4: CEO at Twitter.

514
00:25:54,520 --> 00:25:56,160
Speaker 6: I think it's super interesting.

515
00:25:56,400 --> 00:26:00,679
Speaker 11: I am interested to see how this goes forward. You know,

516
00:26:00,840 --> 00:26:05,199
Speaker 11: she and Elon gave a presentation last month at a

517
00:26:05,200 --> 00:26:08,520
Speaker 11: summit in which she seemed to really have a handle

518
00:26:08,640 --> 00:26:12,080
Speaker 11: on his personality, and you know she was even encouraging him.

519
00:26:12,119 --> 00:26:14,520
Speaker 11: You know, advertising is important, Elon, Why don't you get

520
00:26:14,520 --> 00:26:17,400
Speaker 11: off the Twitter at three am? So I think there's

521
00:26:17,440 --> 00:26:20,439
Speaker 11: hope here that she will be able to bring some

522
00:26:20,920 --> 00:26:25,600
Speaker 11: hast and some leadership to the company, which it really needs.

523
00:26:25,680 --> 00:26:28,520
Speaker 11: I mean, as I said, the revenues have just plummeted.

524
00:26:28,600 --> 00:26:30,560
Speaker 11: We know that, you know, advertising revenue used to make

525
00:26:30,600 --> 00:26:32,760
Speaker 11: up ninety percent of Twitter's business, and we know that

526
00:26:32,760 --> 00:26:35,879
Speaker 11: that advertising revenue is down about sixty percent now. And

527
00:26:35,920 --> 00:26:37,840
Speaker 11: what it really needs, what Twitter really needs is a

528
00:26:37,920 --> 00:26:40,640
Speaker 11: leader who can come in and court those global advertisers

529
00:26:40,640 --> 00:26:42,280
Speaker 11: to come back to the platform.

530
00:26:42,720 --> 00:26:46,640
Speaker 4: You were at Twitter twenty ninety twenty fourteen Corporate Social Innovation.

531
00:26:46,680 --> 00:26:48,200
Speaker 3: At one point I think somebody.

532
00:26:47,880 --> 00:26:51,640
Speaker 4: Called you the woman who got the Pope onto Twitter.

533
00:26:52,640 --> 00:26:55,760
Speaker 4: What will they be calling Linda Yakarino. What kind of

534
00:26:55,800 --> 00:26:58,240
Speaker 4: impact beyond just ad sales do you think she can

535
00:26:58,280 --> 00:27:00,800
Speaker 4: do to help the platform?

536
00:27:01,080 --> 00:27:04,120
Speaker 11: I think the potential here is pretty incredible. The first

537
00:27:04,119 --> 00:27:06,160
Speaker 11: thing she's going to have to do is get back

538
00:27:06,359 --> 00:27:09,320
Speaker 11: and court all those advertisers again, people she's worked with

539
00:27:09,480 --> 00:27:13,119
Speaker 11: very closely over her long career at NBC Universal, And

540
00:27:13,200 --> 00:27:15,120
Speaker 11: what she's going to have to convince them is that

541
00:27:15,160 --> 00:27:19,760
Speaker 11: stability and security are back. And that's of course why

542
00:27:19,840 --> 00:27:23,120
Speaker 11: advertisers left the platform, their concerns about stability and their

543
00:27:23,160 --> 00:27:27,040
Speaker 11: concerns about security, the rise of hate speech, the reintroduction

544
00:27:27,200 --> 00:27:30,000
Speaker 11: of a bunch of formerly banned accounts, and so that's

545
00:27:30,040 --> 00:27:32,760
Speaker 11: going to be her first sort of step is to

546
00:27:32,760 --> 00:27:36,640
Speaker 11: make sure advertisers feel safe and feel excited to use

547
00:27:36,760 --> 00:27:39,120
Speaker 11: the platform again. And then beyond that, I think one

548
00:27:39,119 --> 00:27:41,440
Speaker 11: of her biggest challenges is going to be looking at

549
00:27:41,440 --> 00:27:42,680
Speaker 11: how she can accomplish all.

550
00:27:42,600 --> 00:27:44,280
Speaker 6: This with a really reduced headcount.

551
00:27:44,400 --> 00:27:47,359
Speaker 11: We know that at NBC right now she leads a

552
00:27:47,400 --> 00:27:49,520
Speaker 11: team of about two thousand, which is about the size

553
00:27:49,520 --> 00:27:51,720
Speaker 11: of Twitter as it is right now. But you know,

554
00:27:51,800 --> 00:27:54,359
Speaker 11: Twitter is made up of a ton of engineers, and

555
00:27:54,440 --> 00:27:57,280
Speaker 11: she's going to get She's going to require a media

556
00:27:57,359 --> 00:27:59,800
Speaker 11: team and the need to sort of build that back

557
00:27:59,880 --> 00:28:01,960
Speaker 11: up again, and that's going to be really interesting to

558
00:28:01,960 --> 00:28:04,880
Speaker 11: see how she's able to do that on such limited numbers.

559
00:28:05,040 --> 00:28:05,760
Speaker 6: Staff numbers.

560
00:28:06,200 --> 00:28:09,200
Speaker 2: You point out the challenges here, and ultimately the way

561
00:28:09,200 --> 00:28:11,600
Speaker 2: in which this has been announced, dare I say, is

562
00:28:11,640 --> 00:28:13,680
Speaker 2: a complete mess. It is not how I would want

563
00:28:13,720 --> 00:28:15,480
Speaker 2: to be taking on a new role, to have to

564
00:28:15,520 --> 00:28:18,159
Speaker 2: exit like that, to have to enter like that. And

565
00:28:18,720 --> 00:28:21,240
Speaker 2: many have said, and maybe I'm just seeing it more

566
00:28:21,280 --> 00:28:23,399
Speaker 2: because I'm a woman, but they said, look, this is

567
00:28:23,440 --> 00:28:26,040
Speaker 2: a so called sort of glass cliff. This is once

568
00:28:26,119 --> 00:28:28,359
Speaker 2: again a diverse leader being handed a bit of a

569
00:28:28,359 --> 00:28:29,280
Speaker 2: poison chalice here.

570
00:28:30,720 --> 00:28:32,040
Speaker 6: It's super fascinating.

571
00:28:32,080 --> 00:28:34,960
Speaker 11: So there's a study from some researchers at the University

572
00:28:35,040 --> 00:28:37,399
Speaker 11: of Ethics and that's been sort of going viral on

573
00:28:37,440 --> 00:28:40,440
Speaker 11: Twitter because it was republished in Harvard Business Review, And

574
00:28:40,560 --> 00:28:43,720
Speaker 11: essentially it shows that in times of crisis, In times

575
00:28:43,720 --> 00:28:47,400
Speaker 11: of crisis is in a business generally the markets prefer

576
00:28:47,680 --> 00:28:52,200
Speaker 11: a leader who has stereotypically feminine or qualities of a woman, essentially,

577
00:28:52,280 --> 00:28:54,320
Speaker 11: and yet when a business is sort of doing well,

578
00:28:54,360 --> 00:28:57,520
Speaker 11: we tend to prefer the stereotypical qualities of a man.

579
00:28:57,680 --> 00:29:01,600
Speaker 11: So it's not a surprise that if an extreme moment

580
00:29:01,800 --> 00:29:06,040
Speaker 11: of necessary turnaround that Twitter requires right now, that they're

581
00:29:06,040 --> 00:29:09,640
Speaker 11: going out and seeking a female leader. What we can

582
00:29:09,680 --> 00:29:11,880
Speaker 11: hope is that she can turn this around and it

583
00:29:11,920 --> 00:29:16,160
Speaker 11: won't just be sort of a failed experiment.

584
00:29:16,280 --> 00:29:16,480
Speaker 3: Right.

585
00:29:17,480 --> 00:29:20,040
Speaker 2: And it's interesting, of course that Elon Musk is going

586
00:29:20,080 --> 00:29:22,880
Speaker 2: to the CTO role, so it feels as though the

587
00:29:23,040 --> 00:29:25,600
Speaker 2: delineation is clear. He's very much going to be about

588
00:29:25,640 --> 00:29:28,920
Speaker 2: innovation on the platform. She's going to be about how

589
00:29:28,960 --> 00:29:30,920
Speaker 2: you sell it and bring safety back. Is that the way?

590
00:29:31,040 --> 00:29:32,400
Speaker 2: Do you think that's a good allign It's a good

591
00:29:32,440 --> 00:29:33,200
Speaker 2: way of splitting it.

592
00:29:34,160 --> 00:29:35,920
Speaker 6: I think that's a good analysis.

593
00:29:35,960 --> 00:29:37,959
Speaker 11: But I think I would highlight here that you know,

594
00:29:38,000 --> 00:29:41,560
Speaker 11: this is a huge thing for him to acknowledge, right,

595
00:29:41,600 --> 00:29:45,960
Speaker 11: I mean, the CEO is, for all intentsive purposes, in

596
00:29:45,960 --> 00:29:47,000
Speaker 11: a management role.

597
00:29:46,840 --> 00:29:48,320
Speaker 6: In charge of the CTO.

598
00:29:48,440 --> 00:29:50,800
Speaker 11: And this is very different than the tune he was

599
00:29:50,840 --> 00:29:53,120
Speaker 11: singing six months ago when he bought the platform, right

600
00:29:53,120 --> 00:29:55,800
Speaker 11: that we're going to create a super app, that we're

601
00:29:55,800 --> 00:29:57,200
Speaker 11: going to have payments, that we're going to do all

602
00:29:57,200 --> 00:29:59,720
Speaker 11: these really exciting things that are going to require tons

603
00:29:59,720 --> 00:30:02,160
Speaker 11: of in on the side of tech. And now he's saying, hey,

604
00:30:02,200 --> 00:30:06,200
Speaker 11: you know, actually we need a CEO who really knows advertising,

605
00:30:06,240 --> 00:30:09,240
Speaker 11: who really knows numbers, who really knows the business side

606
00:30:09,280 --> 00:30:12,400
Speaker 11: of things. So I think it's a really fascinating turnaround

607
00:30:12,600 --> 00:30:14,440
Speaker 11: and I can't wait to see what happens.

608
00:30:15,600 --> 00:30:17,520
Speaker 4: I would also point out that he's going to the

609
00:30:17,560 --> 00:30:21,840
Speaker 4: executive chair role, so he's kind of giving himself that

610
00:30:22,080 --> 00:30:25,160
Speaker 4: position of oversight alongside CTO.

611
00:30:25,640 --> 00:30:26,320
Speaker 3: It's interesting.

612
00:30:26,400 --> 00:30:29,880
Speaker 4: I don't think Jack Dawsey was CEO when you were there.

613
00:30:29,880 --> 00:30:33,080
Speaker 4: You were there two thousand, ninety twenty fourteen, and Jack

614
00:30:33,120 --> 00:30:37,400
Speaker 4: Dorsey was technically CEO from twenty fifteen. But Jack was

615
00:30:37,440 --> 00:30:42,520
Speaker 4: also criticized for sort of having this non CEO persona.

616
00:30:42,600 --> 00:30:46,880
Speaker 4: He was not a pencil pushing executive. How did that

617
00:30:46,960 --> 00:30:51,000
Speaker 4: dynamic work at the company? You know, how important is

618
00:30:51,040 --> 00:30:54,160
Speaker 4: it to have somebody that's more technologically focused driving their

619
00:30:54,160 --> 00:30:55,400
Speaker 4: platform like Twitter forward.

620
00:30:56,640 --> 00:31:00,360
Speaker 11: Well, typically in Silicon Valley that's incredibly important, right from

621
00:31:00,400 --> 00:31:05,000
Speaker 11: the perception of how you're hiring the most incredible staff

622
00:31:05,080 --> 00:31:08,960
Speaker 11: and how you're raising venture dollars obviously not relevant right now.

623
00:31:09,040 --> 00:31:11,400
Speaker 6: To Elon, that's super, super important.

624
00:31:11,600 --> 00:31:15,000
Speaker 11: And so to be one of the largest tech companies

625
00:31:15,080 --> 00:31:17,680
Speaker 11: out there and to have a CEO who is not

626
00:31:17,800 --> 00:31:21,120
Speaker 11: technical is very interesting. And again I go back to

627
00:31:21,120 --> 00:31:23,600
Speaker 11: why I think this is such an admission on the

628
00:31:23,600 --> 00:31:27,560
Speaker 11: part of Elon that some of his experiments really didn't

629
00:31:27,600 --> 00:31:30,440
Speaker 11: work and didn't work to such an extent that they've.

630
00:31:30,360 --> 00:31:33,000
Speaker 6: Got to change up dramatically here.

631
00:31:34,320 --> 00:31:37,280
Speaker 11: I think with this change, you're going to see a

632
00:31:37,320 --> 00:31:41,120
Speaker 11: lot of going back to the way Twitter used to be,

633
00:31:41,640 --> 00:31:44,240
Speaker 11: and that may be really challenging for Elon and he

634
00:31:44,360 --> 00:31:47,240
Speaker 11: may really not like a lot of it. So, I mean,

635
00:31:47,280 --> 00:31:49,480
Speaker 11: there's a lot to kind of wade through here.

636
00:31:50,400 --> 00:31:51,560
Speaker 4: I just want to go back some of the reporting

637
00:31:51,600 --> 00:31:53,360
Speaker 4: we talked about earlier in the show, which is that

638
00:31:53,400 --> 00:31:58,160
Speaker 4: we reported in October when Elon brought back brought on

639
00:31:58,200 --> 00:32:01,080
Speaker 4: private investors to the new entity, telling them that plan

640
00:32:01,560 --> 00:32:04,200
Speaker 4: is to take this entity public again in a three

641
00:32:04,280 --> 00:32:05,480
Speaker 4: to five year time horizon.

642
00:32:05,520 --> 00:32:06,640
Speaker 3: So I find that interesting.

643
00:32:06,960 --> 00:32:09,280
Speaker 4: I also find like what Twitter is interesting in Caro

644
00:32:09,640 --> 00:32:12,239
Speaker 4: Taker Carlson the most recent example, So what we're going

645
00:32:12,280 --> 00:32:14,640
Speaker 4: to have news shows based on Twitter now?

646
00:32:14,920 --> 00:32:16,840
Speaker 2: Well, and that's what's so interesting. You'll hear a lot

647
00:32:16,880 --> 00:32:19,120
Speaker 2: of news executives sort of always wanting to know when

648
00:32:19,160 --> 00:32:21,360
Speaker 2: it's going to work in tandem with social media and

649
00:32:21,960 --> 00:32:25,720
Speaker 2: clear to that point, is that still an area that

650
00:32:25,760 --> 00:32:27,920
Speaker 2: you're interested in the fact that Tucker Carlson's going to

651
00:32:27,920 --> 00:32:30,840
Speaker 2: go and build something almost bespoke for Twitter. It's about

652
00:32:30,960 --> 00:32:33,200
Speaker 2: that seems to be more about the subscription side of things,

653
00:32:33,200 --> 00:32:36,080
Speaker 2: because he's not a man that actually really managed to

654
00:32:36,120 --> 00:32:38,080
Speaker 2: tantalize that many advertisers.

655
00:32:39,080 --> 00:32:42,160
Speaker 11: I don't think he is a man that tatalizes many advertisers.

656
00:32:42,200 --> 00:32:44,760
Speaker 11: I think that's accurate to say, yes, and then again,

657
00:32:44,760 --> 00:32:46,400
Speaker 11: we're getting back to subscription side.

658
00:32:46,440 --> 00:32:47,880
Speaker 6: So clearly Elon is.

659
00:32:47,800 --> 00:32:51,520
Speaker 11: Not giving up his dreams of, you know, charging users

660
00:32:51,520 --> 00:32:53,880
Speaker 11: to use the platform and have that to be a

661
00:32:53,920 --> 00:32:58,320
Speaker 11: really big business, but he is acknowledging that, hey, ninety

662
00:32:58,320 --> 00:33:01,640
Speaker 11: percent of revenue came directly from advertisers, and we need

663
00:33:01,680 --> 00:33:03,720
Speaker 11: to at least get back a little bit to the

664
00:33:03,800 --> 00:33:07,080
Speaker 11: way things used to be in order to keep Twitter

665
00:33:07,240 --> 00:33:09,720
Speaker 11: more or less on an even keel. Although I don't

666
00:33:09,760 --> 00:33:12,200
Speaker 11: think anyone could ever say Twitter is on an even

667
00:33:12,240 --> 00:33:12,920
Speaker 11: keel right now.

668
00:33:13,520 --> 00:33:17,040
Speaker 2: Well said kind of Perkins Lacy Scout, former Twitter executive

669
00:33:17,160 --> 00:33:19,160
Speaker 2: playas is. It's great to have some time with you

670
00:33:19,520 --> 00:33:20,600
Speaker 2: over there in Argentina.

671
00:33:20,960 --> 00:33:23,760
Speaker 3: Ed, Yeah, I enjoyed that one. We covered a lot

672
00:33:23,760 --> 00:33:24,080
Speaker 3: of ground.

673
00:33:24,120 --> 00:33:27,560
Speaker 4: They're coming up AI's impact on customer service. We're going

674
00:33:27,600 --> 00:33:30,960
Speaker 4: to scuss all that and more with nice CEO Barrack Elm.

675
00:33:31,240 --> 00:33:51,120
Speaker 8: Next, this is Bloomberg, and what we're seeing today is

676
00:33:51,120 --> 00:33:53,800
Speaker 8: a lot of AI tourists pretending to be AI natives.

677
00:33:53,840 --> 00:33:55,480
Speaker 8: You know, there's a lot of companies who are not

678
00:33:55,600 --> 00:33:58,360
Speaker 8: selling solutions. They're ultimately just selling vaporware.

679
00:33:59,440 --> 00:34:03,080
Speaker 2: Alex talking toughly the CEO of SCALEAI when it calls

680
00:34:03,160 --> 00:34:06,520
Speaker 2: AI tourists. Let's talked to more about the rise of

681
00:34:06,560 --> 00:34:08,520
Speaker 2: generative AI at this moment. Some of the players that

682
00:34:08,520 --> 00:34:11,000
Speaker 2: have been in the AI space more broadly for more

683
00:34:11,000 --> 00:34:13,880
Speaker 2: than a hot second, like Nice Tech company that has

684
00:34:13,920 --> 00:34:16,319
Speaker 2: been powering customer services for eighty five percent of the

685
00:34:16,320 --> 00:34:20,479
Speaker 2: fortune one hundred companies with artificial intelligence. Nice CEO rag

686
00:34:20,480 --> 00:34:24,759
Speaker 2: Iliam Elam is with us now. But it's interesting. You

687
00:34:24,760 --> 00:34:27,239
Speaker 2: have twenty five thousand organizations more than one hundred and

688
00:34:27,239 --> 00:34:30,399
Speaker 2: fifty countries. This is about customer experience and the use

689
00:34:30,440 --> 00:34:33,479
Speaker 2: of AI. How have you been folding generative AI into

690
00:34:33,520 --> 00:34:34,040
Speaker 2: that offering?

691
00:34:35,040 --> 00:34:37,320
Speaker 9: So, you know, if you think about our space, we

692
00:34:37,840 --> 00:34:41,879
Speaker 9: cater to thousands of organizations around the world that are

693
00:34:41,920 --> 00:34:45,440
Speaker 9: serving consumers, and we operate in the space of customer service,

694
00:34:45,440 --> 00:34:48,280
Speaker 9: and we have that platform of organization when it comes

695
00:34:48,280 --> 00:34:53,280
Speaker 9: to provide service to customers. When you know what AI

696
00:34:53,480 --> 00:34:57,000
Speaker 9: brings to the customer service ARAA, I feel back with

697
00:34:57,080 --> 00:35:00,640
Speaker 9: the customer service domain is a true game changer because

698
00:35:00,640 --> 00:35:03,799
Speaker 9: this industry has been struggling with three very important thing.

699
00:35:04,000 --> 00:35:07,279
Speaker 9: First is you know, the lack of skilled labor, the

700
00:35:07,320 --> 00:35:11,920
Speaker 9: ability to take decision in a very fast velocity, and

701
00:35:12,160 --> 00:35:15,840
Speaker 9: mess personalization at scale. Yes, and that's exactly what AI

702
00:35:16,000 --> 00:35:19,360
Speaker 9: can do to this industry. However, there is nothing generic,

703
00:35:19,400 --> 00:35:22,600
Speaker 9: if you'd like, about what those organizations needs when it

704
00:35:22,640 --> 00:35:24,839
Speaker 9: comes to AI. And this is exactly where we are

705
00:35:24,880 --> 00:35:27,640
Speaker 9: and our company come into the picture.

706
00:35:27,680 --> 00:35:30,720
Speaker 2: You're seeing growth of course, posting what twenty five percent

707
00:35:30,719 --> 00:35:33,960
Speaker 2: in the cloud revenue part of the business growth, But

708
00:35:34,120 --> 00:35:35,920
Speaker 2: are you worried about some of the competitors that are

709
00:35:35,920 --> 00:35:38,600
Speaker 2: coming on the space. If everyone suddenly starts being an

710
00:35:38,640 --> 00:35:42,840
Speaker 2: AI specialist, if everyone can suddenly start changing up a business.

711
00:35:42,880 --> 00:35:45,120
Speaker 2: I mean, I think this week alone we've had IBM,

712
00:35:45,360 --> 00:35:49,000
Speaker 2: what's the next, We've had slacked well slax owner salesforce

713
00:35:49,040 --> 00:35:52,120
Speaker 2: talking about how they're having the GPT within some parts

714
00:35:52,120 --> 00:35:55,480
Speaker 2: of their business. Everyone's now offering this to their customers.

715
00:35:55,880 --> 00:35:57,360
Speaker 9: I would sell in the countrary. First of all, We

716
00:35:57,680 --> 00:35:59,840
Speaker 9: reported our ERNIXT yesterday and as you said, we had

717
00:35:59,840 --> 00:36:03,160
Speaker 9: an outstanding earnings with twenty five percent growth in the cloud,

718
00:36:03,200 --> 00:36:06,759
Speaker 9: driven by both cloud and AI. But when it comes

719
00:36:06,800 --> 00:36:09,200
Speaker 9: to AI, although you know we all experience so far,

720
00:36:09,239 --> 00:36:12,520
Speaker 9: almost all of us experience the beauty of GENERATIVEI, when

721
00:36:12,520 --> 00:36:15,640
Speaker 9: it comes to deploying it in customer service for organization,

722
00:36:16,080 --> 00:36:19,239
Speaker 9: there is nothing generic about it. Actually, we see for

723
00:36:19,320 --> 00:36:21,960
Speaker 9: our customers that are divided into two camps, those that

724
00:36:22,000 --> 00:36:24,280
Speaker 9: says I will never put it in my customer service

725
00:36:24,360 --> 00:36:27,640
Speaker 9: environment because it's not secured and I cannot control it,

726
00:36:27,680 --> 00:36:30,200
Speaker 9: and the other that see the value but are concern

727
00:36:30,239 --> 00:36:33,760
Speaker 9: about taking something that generic and try it and doesn't work.

728
00:36:34,120 --> 00:36:36,680
Speaker 9: Because what you need you actually need to treat that

729
00:36:36,760 --> 00:36:39,960
Speaker 9: AI as one of your employee and as a brand.

730
00:36:40,200 --> 00:36:43,520
Speaker 9: You want the AI to serve your brand, your reputation,

731
00:36:43,840 --> 00:36:45,840
Speaker 9: and meet your business goal. So it needs to be

732
00:36:45,920 --> 00:36:50,080
Speaker 9: trained with a lot of information, information of tens of

733
00:36:50,160 --> 00:36:53,920
Speaker 9: billions of pass interactions with customers, and it's a proprietor

734
00:36:54,040 --> 00:36:56,799
Speaker 9: information that you don't want to provide to the generative AI,

735
00:36:57,440 --> 00:36:59,560
Speaker 9: and that's why they come to us to our platform.

736
00:36:59,600 --> 00:37:02,800
Speaker 9: We have I have done data that is extremely almost

737
00:37:02,880 --> 00:37:06,040
Speaker 9: impossible to replicate given our history and the.

738
00:37:05,960 --> 00:37:06,960
Speaker 3: Breadth of our offering.

739
00:37:07,400 --> 00:37:10,600
Speaker 9: It's also both having it in a very secured environment

740
00:37:11,040 --> 00:37:14,440
Speaker 9: and you have to the domain expertise, so it actually

741
00:37:14,600 --> 00:37:17,239
Speaker 9: raises I would say, the bulio of entry when it

742
00:37:17,320 --> 00:37:19,960
Speaker 9: comes to technology in the space of customer service.

743
00:37:20,080 --> 00:37:21,960
Speaker 2: Gosh ed. It takes me back to the conversation we

744
00:37:22,000 --> 00:37:24,120
Speaker 2: had a couple of months ago with Kathy Wood talking

745
00:37:24,160 --> 00:37:27,080
Speaker 2: about it all being about the power of your proprietary data.

746
00:37:27,640 --> 00:37:31,120
Speaker 2: But also, I mean that isn't to say though, that

747
00:37:31,239 --> 00:37:35,120
Speaker 2: still everyone's coining a term or using and referencing AI,

748
00:37:35,239 --> 00:37:37,520
Speaker 2: no matter what part of the industry or what kind

749
00:37:37,560 --> 00:37:38,239
Speaker 2: of company you are.

750
00:37:38,320 --> 00:37:41,040
Speaker 4: Right now, you make a really interesting point, both on

751
00:37:41,080 --> 00:37:43,800
Speaker 4: proprietary data and referencing the term back.

752
00:37:44,239 --> 00:37:45,840
Speaker 3: I have free time on my hands.

753
00:37:45,600 --> 00:37:47,320
Speaker 4: So I went through every single one of your earnings

754
00:37:47,320 --> 00:37:52,239
Speaker 4: transcripts for the last year seventy four. Mentioned AI in

755
00:37:52,320 --> 00:37:55,680
Speaker 4: the earning school twenty four hours ago. In the same

756
00:37:55,800 --> 00:38:01,359
Speaker 4: quarter a year ago sixteen mentioned to AI the quarter previous,

757
00:38:01,480 --> 00:38:04,759
Speaker 4: Going back to the fourth quarter fifty eight, how much

758
00:38:04,840 --> 00:38:07,799
Speaker 4: pressure are you under to talk a big game around AI.

759
00:38:08,880 --> 00:38:11,520
Speaker 9: I don't think it's a matter of pressure. I think

760
00:38:11,560 --> 00:38:14,279
Speaker 9: that we actually see it in our business. This is

761
00:38:14,320 --> 00:38:17,440
Speaker 9: the type of discussions we have with our customers today.

762
00:38:17,760 --> 00:38:20,920
Speaker 9: You know, our business up until several years ago was

763
00:38:20,960 --> 00:38:24,120
Speaker 9: concentrated more on what we call the contact center, but

764
00:38:24,239 --> 00:38:27,279
Speaker 9: all of a sudden, with AI, we actually covered the

765
00:38:27,440 --> 00:38:30,839
Speaker 9: entire journey of the customer. And we spend the last

766
00:38:30,840 --> 00:38:34,680
Speaker 9: several years deploying and building AI capabilities that are injected

767
00:38:34,680 --> 00:38:38,160
Speaker 9: and infusing our platform, and it is today one of

768
00:38:38,200 --> 00:38:39,840
Speaker 9: the things, one of the two things that are driving

769
00:38:39,880 --> 00:38:42,480
Speaker 9: our business A is the shift to the cloud. That

770
00:38:42,640 --> 00:38:46,680
Speaker 9: is still in the early innings in the customer service part,

771
00:38:46,760 --> 00:38:50,360
Speaker 9: and even earlier than that is the AI. So actually

772
00:38:50,440 --> 00:38:53,840
Speaker 9: we see it as the greatest opportunity we had for

773
00:38:53,960 --> 00:38:56,640
Speaker 9: nights for our company since I remember, and I've been

774
00:38:56,680 --> 00:38:57,960
Speaker 9: with the company for twenty.

775
00:38:57,719 --> 00:39:00,879
Speaker 4: Five years, ROCKI did be on the on the top

776
00:39:00,920 --> 00:39:03,160
Speaker 4: and bottom line. I just give us some guidance going

777
00:39:03,200 --> 00:39:06,120
Speaker 4: forward the rest of this year. What does your customer

778
00:39:06,320 --> 00:39:08,960
Speaker 4: base look like is their confidence to spend right now?

779
00:39:09,680 --> 00:39:10,799
Speaker 3: So we had the.

780
00:39:10,920 --> 00:39:13,720
Speaker 9: Beat both on top line and bottom line, as you've mentioned,

781
00:39:13,719 --> 00:39:16,279
Speaker 9: and we raised the guidance for the for the rest

782
00:39:16,280 --> 00:39:18,600
Speaker 9: of the year. You know, we operate in a space

783
00:39:18,680 --> 00:39:22,440
Speaker 9: that even in this economy, enterprises understand. They see need

784
00:39:22,480 --> 00:39:26,359
Speaker 9: to differentiate and protect their brand, elevate their brand, and

785
00:39:26,440 --> 00:39:29,759
Speaker 9: of course providing out sending experiences to their customers. So

786
00:39:29,800 --> 00:39:33,040
Speaker 9: we are a mission critical solution for them and they

787
00:39:33,040 --> 00:39:37,919
Speaker 9: actually continue to invest and invest even significantly, and that's

788
00:39:37,920 --> 00:39:39,560
Speaker 9: why we raised the guidance.

789
00:39:39,239 --> 00:39:39,600
Speaker 7: For the year.

790
00:39:40,080 --> 00:39:43,640
Speaker 4: Nice CEO name of the company, nice, nice guy to

791
00:39:43,880 --> 00:39:47,120
Speaker 4: Nice CEO, Barack Eyelam, thank you, thank you very much.

792
00:39:56,160 --> 00:39:58,640
Speaker 2: Let's just talk about the founder of SoftBank Group, Masayoshi

793
00:39:58,640 --> 00:40:01,600
Speaker 2: san is now personal on the hook for about five

794
00:40:01,640 --> 00:40:04,000
Speaker 2: point two billion dollars on side deals he set up

795
00:40:04,040 --> 00:40:06,360
Speaker 2: at the company. That's after the company's a vision fund

796
00:40:06,400 --> 00:40:09,000
Speaker 2: Bench Capital. Arm ended the fiscal year with a record

797
00:40:09,040 --> 00:40:12,920
Speaker 2: thirty two billion dollar loss. It's the world's largest technology investor.

798
00:40:13,080 --> 00:40:16,200
Speaker 2: Was look, he's been battered by losses of unlisted startups

799
00:40:16,200 --> 00:40:19,120
Speaker 2: in his portfolio. However, there is one company that he's

800
00:40:19,160 --> 00:40:22,120
Speaker 2: looking to list again. Let's think about how much SoftBank

801
00:40:22,160 --> 00:40:24,520
Speaker 2: is coming. Measuring investor interest in an IPO of its

802
00:40:24,600 --> 00:40:28,160
Speaker 2: chip maker arm Leanna Baker, Bloomberg News US Deal's managing

803
00:40:28,280 --> 00:40:30,520
Speaker 2: editor is here with the details. Of course, the company

804
00:40:30,520 --> 00:40:32,600
Speaker 2: that they took private, now they want to take public

805
00:40:32,640 --> 00:40:34,520
Speaker 2: and what is the interest site for it?

806
00:40:35,480 --> 00:40:38,000
Speaker 12: So it's funny that you mentioned that they were facing

807
00:40:38,080 --> 00:40:40,799
Speaker 12: losses of thirty two billion, because that's almost what they

808
00:40:40,840 --> 00:40:43,960
Speaker 12: spent on ARM back in twenty sixteen, and now it's

809
00:40:44,000 --> 00:40:47,479
Speaker 12: time to cash out. You might remember that ARM tried

810
00:40:47,520 --> 00:40:50,840
Speaker 12: to sell to Nvidia two years ago. That deal never happened,

811
00:40:51,440 --> 00:40:54,080
Speaker 12: So this is really a chance for SoftBank to recoup

812
00:40:54,480 --> 00:40:57,279
Speaker 12: some losses for the rest of their portfolio. And ARM

813
00:40:57,360 --> 00:40:59,759
Speaker 12: right now could be worth anywhere from thirty billion to

814
00:40:59,800 --> 00:41:02,719
Speaker 12: set and debillion. Since it's still early, we don't know

815
00:41:02,760 --> 00:41:05,160
Speaker 12: where the valuation will come in. What we do know

816
00:41:05,280 --> 00:41:07,320
Speaker 12: is that this IPO is likely going to be the

817
00:41:07,320 --> 00:41:09,800
Speaker 12: biggest of the year, certainly the biggest in the tech space.

818
00:41:10,760 --> 00:41:12,920
Speaker 4: It's interesting, I remember when we went through the Rivian

819
00:41:13,000 --> 00:41:16,120
Speaker 4: IPO process in November twenty twenty one, which seems like

820
00:41:16,160 --> 00:41:19,200
Speaker 4: a lifetime ago now, but you get big institutionals buying

821
00:41:19,239 --> 00:41:22,480
Speaker 4: blocks of shares, there was demand. Do we have any

822
00:41:22,520 --> 00:41:26,040
Speaker 4: guide of how interested those institutionals are for this one?

823
00:41:27,640 --> 00:41:31,399
Speaker 12: So these are tests, the water meetings is what they're called.

824
00:41:31,440 --> 00:41:34,440
Speaker 12: So these aren't, you know, a formal road show we're

825
00:41:34,480 --> 00:41:37,919
Speaker 12: going to see those closer to after Labor Day when

826
00:41:38,200 --> 00:41:41,520
Speaker 12: this IPO is looking to launch. So now these meetings

827
00:41:41,520 --> 00:41:44,000
Speaker 12: are very early. They're just trying to get an indication

828
00:41:44,600 --> 00:41:47,200
Speaker 12: of where we could see that valuation come in. I

829
00:41:47,239 --> 00:41:49,719
Speaker 12: mentioned it's a huge range right now, so probably in

830
00:41:49,719 --> 00:41:52,560
Speaker 12: the next few weeks, ARM will have some sense of

831
00:41:52,600 --> 00:41:55,120
Speaker 12: where things are. But again it is early, and the

832
00:41:55,200 --> 00:41:57,600
Speaker 12: IPO process has changed in the past few years. It

833
00:41:57,680 --> 00:42:00,560
Speaker 12: used to be that these meetings didn't happen, but IPOs

834
00:42:00,600 --> 00:42:03,280
Speaker 12: tend to run smoother when you bring an investors early.

835
00:42:04,040 --> 00:42:06,200
Speaker 2: Many of those Brits still smarting about the fact that

836
00:42:06,200 --> 00:42:08,000
Speaker 2: it's not going to be listening in London quite as

837
00:42:08,040 --> 00:42:10,480
Speaker 2: soon as they hope. Lou mostly Ana Baker absolutely brilliant,

838
00:42:10,480 --> 00:42:12,880
Speaker 2: Thank you so much for bringing us that. And interesting,

839
00:42:12,960 --> 00:42:15,160
Speaker 2: isn't it ed As we talk about just the private

840
00:42:15,239 --> 00:42:18,400
Speaker 2: valuations around AI. We talked to publicly traded companies thinking

841
00:42:18,400 --> 00:42:21,240
Speaker 2: about AI, and then we think about companies that totally

842
00:42:21,320 --> 00:42:23,319
Speaker 2: different but in the chip designing business that are looking

843
00:42:23,320 --> 00:42:25,319
Speaker 2: at the list. It feels a more buoyant kind of

844
00:42:25,320 --> 00:42:26,640
Speaker 2: conversation we're having at the moment.

845
00:42:27,160 --> 00:42:29,840
Speaker 4: Yeah, like ARM is an AI adjacent company, the chips

846
00:42:29,880 --> 00:42:32,799
Speaker 4: IT designs are at the cutting edge of technology. Will

847
00:42:32,800 --> 00:42:34,560
Speaker 4: it be a player in AI? There is a thought

848
00:42:34,840 --> 00:42:38,280
Speaker 4: school of thought that says yes. Look at the banks, Goldman, JP, Morgan, Barclay's.

849
00:42:38,440 --> 00:42:41,440
Speaker 4: According to sources, what did Leanna say? A smooth IPOs

850
00:42:41,480 --> 00:42:42,080
Speaker 4: what we're hoping for?

851
00:42:42,360 --> 00:42:42,600
Speaker 7: M h.

852
00:42:43,040 --> 00:42:44,880
Speaker 2: Well, We've got so much more to discuss. That's the

853
00:42:44,960 --> 00:42:47,480
Speaker 2: end of this edition of Bloomberg Technology. But what's our next?

854
00:42:47,640 --> 00:42:47,680
Speaker 12: Ed?

855
00:42:48,320 --> 00:42:50,600
Speaker 4: Well, you can check out the podcast or join us

856
00:42:50,640 --> 00:42:54,080
Speaker 4: on Twitter spaces right now on Twitter, do it.

857
00:42:54,360 --> 00:42:55,200
Speaker 3: This is Bloomberg