WEBVTT - Elon Musk Chooses New CEO 0:00:01.480 --> 0:00:05.160 From the heart where innovation, money and power. Collie in 0:00:05.240 --> 0:00:10.200 Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.200 --> 0:00:11.119 and Ed lud Love. 0:00:24.680 --> 0:00:27.200 I'm Caroline Hyde at Bloomberg's Weld headquarters in New York 0:00:27.600 --> 0:00:29.320 and Ourmed Ludlow in San Francisco. 0:00:29.480 --> 0:00:31.560 This is Bloomberg Technology. 0:00:31.120 --> 0:00:33.760 Coming up and changing of the guard. Over at Twitter, 0:00:33.760 --> 0:00:37.080 Elon Musk announces he's stepping aside as CEO. We'll bring 0:00:37.080 --> 0:00:39.760 in the details on the successor Claus. 0:00:39.840 --> 0:00:43.919 We'll talk artificial intelligence and how companies are implementing guardrails 0:00:43.920 --> 0:00:46.479 to deliver and embed AI responsibly. 0:00:46.880 --> 0:00:49.440 And soft Bank has begun testing investor appetite for the 0:00:49.479 --> 0:00:52.240 IPO of ARM, seeking as much as ten billion dollars. 0:00:52.479 --> 0:00:54.720 Will bring you that and so much more this hour 0:00:54.760 --> 0:00:56.520 as we look at what market sentiment is like to 0:00:56.560 --> 0:01:00.040 round out this week, pretty dire, really collapsing on the 0:01:00.080 --> 0:01:02.120 ten am mark here in the United States, as we 0:01:02.160 --> 0:01:05.920 get the University of Michigan sentiment from the consumer right 0:01:05.959 --> 0:01:08.440 now that still sees inflation at about three percent for 0:01:08.480 --> 0:01:11.240 the next five to ten years. That inflationary pressure still 0:01:11.280 --> 0:01:13.640 pushing down there for on the tech stocks on the day, 0:01:13.760 --> 0:01:15.840 we're seeing the two year yield actually rise some nine 0:01:15.880 --> 0:01:17.680 basis points. How much is a federal reserve going to 0:01:17.720 --> 0:01:20.319 have to tackle that embedded view of the consumer Aware 0:01:20.360 --> 0:01:22.800 inflation is heading, of course, we've also got anxiety about 0:01:22.800 --> 0:01:25.760 a ceiling about the banking system, plenty still to chew 0:01:25.760 --> 0:01:28.080 on as we head towards the weekend. Interesting moves in 0:01:28.080 --> 0:01:30.040 the emerging markets as well. Keep an eye on Turkey, 0:01:30.040 --> 0:01:32.200 which looks pretty buoyant from the banking system there as 0:01:32.200 --> 0:01:35.679 they look towards a key vote. Could Ernuwan be waved 0:01:35.720 --> 0:01:38.560 goodbye to this weekend? And also look at South Africa. 0:01:38.600 --> 0:01:40.800 We've got the rand really collapsing on the day as 0:01:40.840 --> 0:01:43.160 we see concerns about the relationship between South Africa and 0:01:43.160 --> 0:01:45.000 the US, all to do with Russia supply of arms. 0:01:45.120 --> 0:01:46.760 Let's pick it on agear, because I want to look 0:01:46.760 --> 0:01:48.960 at what's happening in terms of crypto and dollar has 0:01:48.960 --> 0:01:50.800 had a real rally this week on the back of 0:01:50.800 --> 0:01:53.440 some of these inflation concerns and the slowdown in the 0:01:53.800 --> 0:01:57.120 overall jobs data as well. We're seeing bitcoin off by 0:01:57.200 --> 0:01:59.200 nine percent on the course of the week, ed quite 0:01:59.200 --> 0:02:01.040 a sell off, in fact, the first back to back 0:02:01.080 --> 0:02:03.800 weekly loss a bitcoin since back in March. But dive 0:02:03.840 --> 0:02:05.600 into some of the micromovers and starts today. 0:02:06.120 --> 0:02:08.079 Yeah, look, it's a kind of markets day where there's 0:02:08.080 --> 0:02:10.720 a lack of news headlines, particularly in the technology sector. 0:02:10.760 --> 0:02:13.079 I look at some of the megacaps. Actually, one mover 0:02:13.160 --> 0:02:15.200 to the upside is Alphabet, the parent of Google, up 0:02:15.200 --> 0:02:17.120 by six tenths of a percent. You see some of 0:02:17.160 --> 0:02:20.920 its megacap peers moving to the downside, dragging down the 0:02:20.960 --> 0:02:23.239 nas That one hundred is an example for the Alphabet 0:02:23.280 --> 0:02:25.800 actually on track for its best week since mid March. 0:02:25.840 --> 0:02:27.600 I think there's a lot of momentum in this name 0:02:27.840 --> 0:02:29.720 from all the news we got from the Google io 0:02:29.880 --> 0:02:33.399 around what they're actually doing in AI. This show Bluemberg 0:02:33.440 --> 0:02:35.280 Technology today is going to have. 0:02:35.240 --> 0:02:36.160 A big AI theme. 0:02:36.200 --> 0:02:38.680 But we're not seeing sort of news driven moves in 0:02:38.720 --> 0:02:42.040 the markets. Apart from Tesla. Let's take a look at 0:02:42.080 --> 0:02:44.680 this stock. It's interesting had been higher at the open, 0:02:44.800 --> 0:02:47.359 markedly higher, up by a couple of percentage points. We're 0:02:47.360 --> 0:02:50.440 now softer by one point four percent. Three factors in 0:02:50.480 --> 0:02:53.440 the market, one the principal one being we do have 0:02:53.520 --> 0:02:57.799 a new CEO at Twitter, Linda Yakarino. We will get 0:02:57.800 --> 0:03:01.200 into that momentarily. Also news elsewhere that they've raised prices 0:03:01.200 --> 0:03:03.680 incrementally on the Model Y in the US two hundred 0:03:03.680 --> 0:03:06.320 and fifty dollars and on some of the more expensive 0:03:06.320 --> 0:03:09.239 models like Model why sorry, more expensive models like the 0:03:09.280 --> 0:03:12.560 Model Let's having a one thousand dollar price bump. In China, 0:03:12.800 --> 0:03:15.640 there is a soft recall for a software fix on 0:03:16.320 --> 0:03:19.560 Regenerative breaking one point one million units or so. A 0:03:19.560 --> 0:03:21.919 lot happening. But we're down one and a half percent 0:03:21.960 --> 0:03:24.400 on Tesla. I think a lot of this has the 0:03:24.840 --> 0:03:28.920 market's passing. What's happening at Twitter Elon Musk's other company. 0:03:29.000 --> 0:03:30.720 Yeah, that's stick into that, of course, because he is 0:03:30.720 --> 0:03:33.800 announcing said it last night. In fact, stepping down, stepping 0:03:33.840 --> 0:03:36.720 back is Twitter CEO in the next coming weeks, and 0:03:36.800 --> 0:03:40.520 reports now name NBC ad chief Linda Yacarino as his 0:03:40.640 --> 0:03:44.160 successor for more let's bring him luez Asha Counts interestingly, 0:03:44.240 --> 0:03:46.520 comcast down a little bit on the news that they're 0:03:46.520 --> 0:03:50.600 losing this ad chief over at NBC Universal. But we 0:03:50.840 --> 0:03:55.080 do see finally what someone who gets advertising been paired 0:03:55.080 --> 0:03:56.600 with someone who gets the technology. 0:03:58.200 --> 0:04:02.360 Yeah, it's huge, right, Twitter is advertising revenue has declined 0:04:02.920 --> 0:04:06.120 about fifty percent maybe more since must have over he's 0:04:06.160 --> 0:04:08.760 really alienated a lot of advertisers with some of his 0:04:09.400 --> 0:04:12.840 erratic decision making and things like getting into a spat 0:04:12.960 --> 0:04:16.440 with the ex employee who was disabled and making comments 0:04:16.480 --> 0:04:18.920 that were perceived by some to be sexist against women, 0:04:18.960 --> 0:04:22.000 and all these sorts of things have really driven advertisers away. 0:04:22.320 --> 0:04:24.880 So bringing in someone like Linda, who has such deep 0:04:24.880 --> 0:04:28.120 experience in the advertising industry, has those relationships, has an 0:04:28.120 --> 0:04:31.720 amazing reputation like that could be huge for Twitter and 0:04:31.800 --> 0:04:33.880 really rebuilding trust with advertisers. 0:04:34.680 --> 0:04:38.200 Caroline Asha Elon Musk has tweeted in the last fifteen minutes, 0:04:38.279 --> 0:04:40.640 let's bring that up and show our audience. He says, 0:04:40.720 --> 0:04:43.920 I am excited to welcome Linda Yakarino as the new 0:04:43.960 --> 0:04:46.480 CEO of Twitter. So there you have it, official confirmation. 0:04:46.880 --> 0:04:50.359 He tags Linda Yakarino and says that you'll focus primarily 0:04:50.400 --> 0:04:54.560 on business operations while he focuses on product design, new technology. 0:04:54.760 --> 0:04:57.640 Looking forward to working with Linda to transform this platform 0:04:57.920 --> 0:05:01.800 into X the everything app. That is the kind of 0:05:01.880 --> 0:05:05.000 key key part right that this is one step to 0:05:05.040 --> 0:05:05.760 a bigger project. 0:05:05.800 --> 0:05:07.880 Asia. Yeah. 0:05:08.040 --> 0:05:10.559 Musk has talked a lot about this idea of having 0:05:10.560 --> 0:05:13.599 an everything app, right, modeling on something like we chat 0:05:13.600 --> 0:05:16.839 in China where you can book events and tickets and 0:05:16.960 --> 0:05:19.080 pay for things. So he's talked a lot about that 0:05:19.320 --> 0:05:21.159 and sort will be interesting to see if he's actually 0:05:21.200 --> 0:05:23.960 able to execute on that idea. And then we know, right, 0:05:24.160 --> 0:05:27.200 a number of weeks ago he put Twitter underneath this 0:05:27.240 --> 0:05:28.440 holding company called X. 0:05:28.680 --> 0:05:30.560 Right, so technically Twitter Inc. 0:05:30.680 --> 0:05:33.520 Doesn't exist, but it's underneath this company called X and 0:05:33.560 --> 0:05:35.880 it's part of his vision to sort of make Twitter 0:05:35.880 --> 0:05:37.440 an app that can do everything. 0:05:38.400 --> 0:05:42.400 I've got to sort of reflect on all the messiness 0:05:42.440 --> 0:05:44.920 of all of this. So a shit because if we 0:05:44.960 --> 0:05:49.400 reflect on what's just happened to comodcasts NBC Universal, they're 0:05:49.440 --> 0:05:52.240 about to go to their advertising community, they're about to 0:05:52.240 --> 0:05:54.200 have their upfronts. They're about to be pitching how you 0:05:54.240 --> 0:05:56.280 should be lining up your advertising against some of their 0:05:56.279 --> 0:06:00.000 online offerings, and particularly on Peacock, and the main women 0:06:00.120 --> 0:06:03.440 to do that has just exited stage left in quite 0:06:03.480 --> 0:06:06.440 a sort of erratic manner. It can't be a great 0:06:06.560 --> 0:06:08.800 end to that part of her career and start on 0:06:08.839 --> 0:06:09.479 the next one. 0:06:10.560 --> 0:06:11.960 Yeah, it has to be difficult, right. 0:06:12.040 --> 0:06:16.279 She was really integral to NBC efforts like Peacock, which 0:06:16.360 --> 0:06:18.880 is you know, the ad supporters dreaming service, to even 0:06:18.960 --> 0:06:21.880 establishing partnerships and relationships with some of the tech companies 0:06:21.920 --> 0:06:25.920 including Twitter, Snapchat, YouTube and others, and then even huge 0:06:25.920 --> 0:06:27.719 events like the Super Bowl in the Olympic Games. So 0:06:27.960 --> 0:06:30.680 she had a really really important role at NBCU, and 0:06:30.720 --> 0:06:32.760 so I can imagine it's going to be tough now 0:06:32.800 --> 0:06:35.400 that that she's leaving at this last moment when she 0:06:35.440 --> 0:06:37.560 had a lot of those relationships and was responsible for 0:06:37.600 --> 0:06:40.960 a lot of those relationships with advertisers. Good for Twitter, 0:06:41.120 --> 0:06:43.680 but obviously really tough for NBCU, which has had its 0:06:43.680 --> 0:06:46.000 own sort of internal praders with the past as well. 0:06:46.120 --> 0:06:49.279 Yeah, with the departure of their leader in recent weeks. 0:06:50.120 --> 0:06:54.440 It's interesting the CV Asia. We reported in October that 0:06:54.520 --> 0:06:57.559 when Elon Musk brought in those private investors for ex 0:06:57.640 --> 0:07:01.200 Corps now EX Holdings, he stayed in writing the plan 0:07:01.680 --> 0:07:05.160 to take the company known as Twitter public again in 0:07:05.200 --> 0:07:07.520 a three to five year horizon. But you look at 0:07:07.800 --> 0:07:12.160 Lindy Yakarino, she doesn't have CEO experience and there are 0:07:12.240 --> 0:07:15.280 still advertiser concerns, right, I mean, just give us the 0:07:15.360 --> 0:07:18.440 latest on the advertiser flight and the impact of revenue. 0:07:18.720 --> 0:07:20.960 Yeah, so the last time we looked at the numbers 0:07:20.960 --> 0:07:23.840 here at Bloomberg, right, it was still a large majority 0:07:23.840 --> 0:07:28.200 of advertisers on Twitter had left. So advertising revenue was 0:07:28.480 --> 0:07:31.800 down amongst the top ten advertisers from like seventy million 0:07:31.920 --> 0:07:34.520 to something like seven million, So it was a huge, 0:07:34.560 --> 0:07:38.560 huge decline. And even today, advertisers that I've spoken to 0:07:38.600 --> 0:07:41.640 are still a little bit concerned about brand safety. So 0:07:42.040 --> 0:07:44.720 some of you may have noticed on Twitter there seems 0:07:44.760 --> 0:07:48.400 to have been almost a rise in misinformation and hate speech. 0:07:48.760 --> 0:07:51.720 Advertisers are concerned about that. They're concerned about some of 0:07:52.320 --> 0:07:55.640 must own tweets himself and some of his erratic decision making, 0:07:55.720 --> 0:07:58.600 and so advertisers still have a lot of concerns about Twitter. 0:07:59.320 --> 0:08:02.920 And honestly, Twitter was not always necessarily a top advertising 0:08:02.920 --> 0:08:05.880 destination anyways, just because it's a lot smaller than its 0:08:05.880 --> 0:08:08.760 competitors like Meta. So there's still going to be a 0:08:08.800 --> 0:08:11.800 lot of challenges in getting advertisers back and really ensuring 0:08:11.840 --> 0:08:14.360 them that when they put an advertisement on Twitter, it's 0:08:14.400 --> 0:08:18.160 not going to appear next to some misinformation or fake news, 0:08:18.320 --> 0:08:20.600 that it's going to appear next to tweets that are 0:08:20.640 --> 0:08:22.720 saved and are not going to damage their brand reputation. 0:08:22.960 --> 0:08:25.520 All right, Bloomberg seish accounts, thank you so much, busy 0:08:25.600 --> 0:08:36.480 twenty four hours for you and I both so Carral 0:08:36.559 --> 0:08:39.600 investors poured nearly four billion dollars into tech stocks over 0:08:39.640 --> 0:08:42.439 the course of the week. But Bank of America is 0:08:42.480 --> 0:08:45.760 splashing cold water on this rally, saying this prolonged period 0:08:45.760 --> 0:08:48.920 of economic decline in the US were royal technology stocks 0:08:48.920 --> 0:08:51.680 at the time where they're attracting a way of investor money. 0:08:51.679 --> 0:08:54.720 A team led by Michael Harnett expects a recession to 0:08:54.920 --> 0:08:57.800 crack credit and tech just as it did back in 0:08:57.800 --> 0:09:00.319 two thousand and eight. And there's so many eye to 0:09:00.360 --> 0:09:02.319 this debate, right. There's those that look at the megacaps 0:09:02.360 --> 0:09:05.400 and say balance sheet and trench market position, look at 0:09:05.400 --> 0:09:07.880 the activity in the corporate credit sector, the demand detect 0:09:08.000 --> 0:09:09.840 is there. Bank of America things differently. 0:09:10.200 --> 0:09:12.920 Yeah. I mean, whether you see big tech as some 0:09:12.960 --> 0:09:15.480 sort of haven in downturns or whether you see it 0:09:15.520 --> 0:09:18.200 as a bet still on growth. And let's just look 0:09:18.240 --> 0:09:21.520 at the growthier part of this, because the exuberants around 0:09:21.600 --> 0:09:23.000 a lot of these tech stocks I think of in 0:09:23.120 --> 0:09:24.800 video I think has some of the chick names. It's 0:09:24.920 --> 0:09:26.880 largely on the back of artificial intelligence, isn't it? And 0:09:26.880 --> 0:09:28.840 I thought there was a great note from Sotschen today. 0:09:28.920 --> 0:09:31.760 Key Stretchers is over there saying, look, actually all the 0:09:31.840 --> 0:09:34.360 main driving force of the equity rally this year and 0:09:34.400 --> 0:09:38.559 the SMP, it's all artificial intelligence. It's a strip away 0:09:38.960 --> 0:09:42.920 that sort of euphoria around certain AI stocks and actually 0:09:43.120 --> 0:09:45.160 the SMP would be in the red for this year. 0:09:45.200 --> 0:09:47.640 I'm loving this from Nash Cabra. It was really interesting. 0:09:47.679 --> 0:09:49.960 He's riding over in London, but they really cite the 0:09:50.040 --> 0:09:53.040 ninety six percent increase and in video overall, but Alphabet 0:09:53.120 --> 0:09:56.199 the Microsoft's what would happen if we sort of took 0:09:56.240 --> 0:09:57.880 away some of Alxuberant said. 0:09:58.320 --> 0:09:59.680 We saw it in the private markets. 0:09:59.720 --> 0:10:02.480 First, think back weeks months ago, all the money going 0:10:02.520 --> 0:10:05.080 to AI startups, and then the last three weeks what 0:10:05.240 --> 0:10:08.320 happened earning season. And this is what I've been looking 0:10:08.320 --> 0:10:11.080 at on the Bloomberg terminal, which is a fantastic chart 0:10:11.160 --> 0:10:13.120 that to how our chart's chief and I have been 0:10:13.520 --> 0:10:16.400 passing over. So go back all the way to twenty fifteen, 0:10:16.800 --> 0:10:18.959 and this is a basket of around twenty of the 0:10:18.960 --> 0:10:21.640 biggest technology names across the S and P five hundred 0:10:21.640 --> 0:10:24.880 and as that one hundred like nada zero mentions of 0:10:24.920 --> 0:10:27.120 the phrase artificial intelligence or AI. 0:10:27.480 --> 0:10:29.760 Fast forward to the first quarter of. 0:10:29.679 --> 0:10:33.240 Twenty twenty three and across the earnings cool transcript. That's 0:10:33.280 --> 0:10:36.360 what we've analyzed, more than two hundred mentions just for 0:10:36.400 --> 0:10:39.600 that basket of twenty companies. That's a massive ramp up 0:10:39.600 --> 0:10:42.920 in activity. It's been gaining. But look, first quarter of 0:10:42.920 --> 0:10:45.439 twenty twenty three, this is the here and now. AI 0:10:45.600 --> 0:10:47.040 is everything for corporate America. 0:10:47.280 --> 0:10:51.000 It is, but with that exuberance comes for many a 0:10:51.040 --> 0:10:53.800 healthy Joseph caution, A healthy Dooseph, how do you inject 0:10:53.920 --> 0:10:56.280 artificial intelligence into your business model in this safe way? 0:10:56.320 --> 0:10:58.160 We're going to have that exact conversation right now, ed 0:10:58.160 --> 0:11:02.400 because Navrida sings with us AI found a CEO GOODEOII 0:11:02.480 --> 0:11:07.120 is actually a responsible oftificial intelligence governance platform. Basically, you 0:11:07.200 --> 0:11:10.600 are empowering organizations to what delivered to embed AI, but 0:11:10.920 --> 0:11:14.880 do it responsibly, do it proactively, monitor it, manage it. 0:11:14.920 --> 0:11:17.920 And I'm interested in Nevrena, how many companies you think 0:11:17.960 --> 0:11:22.200 are actually holding back on interjecting generative AI because they 0:11:22.200 --> 0:11:24.720 are worried about some of the risks that are involved. 0:11:26.120 --> 0:11:27.960 Thank you so much for having me And what a 0:11:28.000 --> 0:11:32.079 critical topic right now, Carolyn, VA are seeing across the industry. 0:11:32.160 --> 0:11:36.600 Right now, generative AI already reinventing businesses. The top of 0:11:36.640 --> 0:11:40.160 mind questions for many of our customers is, you know, 0:11:40.160 --> 0:11:43.320 how can they continue innovating responsibly or get crushed by 0:11:43.320 --> 0:11:47.120 this generative AI wave. So right now, the top of 0:11:47.200 --> 0:11:49.920 mind question that we are hearing across our customers and 0:11:49.920 --> 0:11:55.120 partners is how can I adopt GENITIVEVII confidentally and responsibly 0:11:55.600 --> 0:12:01.080 to make sure that the risks like copyright, appy IP leakage, plagiarism, etc. 0:12:01.559 --> 0:12:02.240 Are under check. 0:12:03.760 --> 0:12:07.240 Your background is fascinating because you're building this way of 0:12:07.320 --> 0:12:10.040 monitoring and doing it responsibly. You used to be a 0:12:10.040 --> 0:12:12.720 director of product over at Microsoft. Thinking about the ways 0:12:12.760 --> 0:12:17.199 in which AI can be commercialized. Is corporate America at 0:12:17.200 --> 0:12:21.960 this moment being thoughtful enough? Is VC private money being 0:12:22.000 --> 0:12:24.360 thoughtful enough about the guardrails and known to go in 0:12:24.400 --> 0:12:26.960 place at the same time as the exuberance around just 0:12:27.000 --> 0:12:27.520 the innovation. 0:12:29.080 --> 0:12:32.120 You know, Carolyn, there is some momentum, but it needs 0:12:32.120 --> 0:12:34.560 to be more. As you can imagine, Now it's not 0:12:34.720 --> 0:12:37.880 about just winning the DEI. It is also about how 0:12:37.960 --> 0:12:40.280 you win the DEI. And this is where you're going 0:12:40.320 --> 0:12:44.320 to start seeing a lot of differentiation among organizations that 0:12:44.440 --> 0:12:46.040 actually are more just leaders in. 0:12:46.000 --> 0:12:46.920 This age of AI. 0:12:47.600 --> 0:12:50.040 Where there is investment in the I governance, where there's 0:12:50.160 --> 0:12:53.720 investment in oversight, whether investment is not in not only 0:12:53.840 --> 0:12:58.040 understanding AI risk but managing them at scale while also 0:12:58.120 --> 0:13:01.319 keeping an eye out to future regular that's where we 0:13:01.400 --> 0:13:04.479 are going to see the wins emerging in the ecosystem. 0:13:04.800 --> 0:13:09.440 So AI governance is certainly underfunded and certainly you know, 0:13:09.520 --> 0:13:11.400 becoming top of mind, but we need to see more 0:13:11.440 --> 0:13:13.280 progress and momentum in this space. 0:13:14.080 --> 0:13:17.800 And avery in a good morning to you government compliance 0:13:17.880 --> 0:13:21.400 doing business with the public sector. What level of government 0:13:21.480 --> 0:13:24.839 clients does CREDO have. Are you able to offer your 0:13:24.880 --> 0:13:27.880 services to the federal government as an example? 0:13:29.240 --> 0:13:29.960 Absolutely? 0:13:30.160 --> 0:13:30.199 Ed. 0:13:30.600 --> 0:13:33.480 So recently we announced a very strong partnership with booths 0:13:33.559 --> 0:13:36.840 Allen that exactly that focus. As you can imagine, there's 0:13:36.880 --> 0:13:41.360 been an emerging discussion Invice House around how do you 0:13:41.480 --> 0:13:45.280 know make sure that frameworks like billa frids are implemented 0:13:45.360 --> 0:13:49.880 appropriately across US agencies so that we're always keeping you know, 0:13:50.000 --> 0:13:53.360 US citizens right. Central to this conversation, the creator AI 0:13:53.480 --> 0:13:56.679 right now is working across United States government as well 0:13:56.720 --> 0:13:59.360 as this partners like Booze Alan so that we can 0:13:59.400 --> 0:14:04.080 bring AI governance as a mechanism for them to activate 0:14:04.200 --> 0:14:07.520 AI adoption. But due to again safely and. 0:14:07.480 --> 0:14:14.000 Responsibly, there's a debate within the artificial intelligence community AI 0:14:14.160 --> 0:14:17.880 native or AI adjacent startup founders basically looking at regulation 0:14:18.040 --> 0:14:21.320 and saying, well, if we think about healthcare or education, 0:14:21.440 --> 0:14:26.200 those are highly regulated industries where the consumer faces high 0:14:26.200 --> 0:14:29.480 prices or there are still risks in place. What is 0:14:29.520 --> 0:14:33.800 the benefit of focusing on a commercial guard rail versus 0:14:34.040 --> 0:14:36.000 seeking comprehensive regulation. 0:14:37.720 --> 0:14:39.520 Yeah, you know, ed, I think this is where we 0:14:39.680 --> 0:14:43.200 have to really strike a right balance between innovation and 0:14:43.400 --> 0:14:48.040 regulation that supports that innovation. And you know, there's global 0:14:48.040 --> 0:14:51.320 initiatives that I'm actually actively involved in. TRETO as involved 0:14:51.320 --> 0:14:54.760 in again to make sure that AI governance and oversights 0:14:55.040 --> 0:14:58.920 are cross the entire value chain from design, development to 0:14:59.160 --> 0:14:59.880 procurement and. 0:14:59.840 --> 0:15:01.320 New of EI systems happen. 0:15:01.760 --> 0:15:04.120 And so you know, this is an opportunity for us 0:15:04.440 --> 0:15:07.560 to really bring in private and public sectors together to 0:15:07.800 --> 0:15:11.520 ensure that policy goes hand in hand with innovation, so 0:15:11.560 --> 0:15:15.080 that it can become an accelerant rather than a deterrent 0:15:15.480 --> 0:15:17.080 to the THEI innovation. 0:15:18.520 --> 0:15:21.320 Never in a sing creto AI CEO, thank you for 0:15:21.400 --> 0:15:25.560 your time. Now sticking with AI, the music industry's biggest 0:15:25.600 --> 0:15:29.560 threat now is AI generated songs that are going viral. 0:15:29.840 --> 0:15:33.560 Industry executives, most notably Spotify CEO Daniel Eck, have been 0:15:33.640 --> 0:15:37.720 quick to promise heightened vigilance on behalf of labels, artists, 0:15:37.760 --> 0:15:40.240 and copyright holders. But while the platforms are sizing up 0:15:40.360 --> 0:15:43.840 the new disruptive force, labels and managers say that fraud 0:15:44.240 --> 0:15:47.800 is already rampant. User generated content and bogus tracks may 0:15:47.840 --> 0:15:51.160 now can account for ten percent of all streams. 0:15:51.200 --> 0:15:54.400 Karen, amazing those statistics. I mean, well, let's shift get 0:15:54.440 --> 0:15:55.600 us a little bit ed. We've going to go to 0:15:56.080 --> 0:15:58.280 an old school in the world of technology. We're going 0:15:58.320 --> 0:16:02.000 to Squarespace with the man who built it twenty years ago. 0:16:02.040 --> 0:16:05.960 The CEO howses website still such a prominent building platform. 0:16:06.000 --> 0:16:09.000 How's it developing tools necessary to serve small businesses? And 0:16:09.080 --> 0:16:11.040 let's face it, we'll ask a question about AI or two. 0:16:11.040 --> 0:16:13.280 I'm sure that's next. As a Bloomberg. 0:16:27.880 --> 0:16:31.160 Squarespace, known for its suite of services in website building, 0:16:31.200 --> 0:16:34.680 domains and marketing tools, is reaffirming's mission to serve small 0:16:34.720 --> 0:16:39.080 businesses and creatives after twenty years of operations. We welcome 0:16:39.120 --> 0:16:42.320 its founder and CEO, Anthony Casalina to the program. Anthony, 0:16:42.360 --> 0:16:44.920 Good afternoon to you out in New York. Good morning 0:16:44.920 --> 0:16:47.520 here from in San Francisco. You had earnings on Tuesday 0:16:48.040 --> 0:16:50.520 and you raised four year guidance for revenue, and I 0:16:50.520 --> 0:16:52.680 want to get right to it and ask how much 0:16:52.720 --> 0:16:55.600 of that confidence is driven by the moment we're having 0:16:55.600 --> 0:16:56.000 in AI. 0:16:58.240 --> 0:16:58.400 Yeah. 0:16:58.600 --> 0:17:01.440 First off, thank you for having me, and you know, 0:17:01.600 --> 0:17:04.000 just a fantastic quarter for us. We were able to 0:17:04.000 --> 0:17:07.320 beat and raise, maintain our strong cash flow profile, and 0:17:07.320 --> 0:17:12.000 continue to accelerate growth, which is really fantastic. Another point 0:17:12.000 --> 0:17:14.720 on the quarter is that trial starts, a number of 0:17:14.760 --> 0:17:18.560 people trying our core product was the highest of any quarter, 0:17:18.640 --> 0:17:20.399 even including pandemic. 0:17:19.920 --> 0:17:21.680 Quarters, which were record high for us. 0:17:23.000 --> 0:17:25.040 You know, as you mentioned and as I you know, 0:17:25.320 --> 0:17:27.880 spent a lot of time talking about on our earnings call, 0:17:28.760 --> 0:17:31.399 AI is something that's you know, we actually know a 0:17:31.440 --> 0:17:34.560 lot about our industry is no stranger to it. 0:17:34.760 --> 0:17:36.439 I would say two things about it. 0:17:36.720 --> 0:17:39.439 One is sort of you know where scort space is 0:17:39.560 --> 0:17:42.400 right now and where we're going in terms of where 0:17:42.400 --> 0:17:47.080 we take things with AI. So Scortespace stopped the need 0:17:47.280 --> 0:17:49.399 for a lot of people who use our platform for 0:17:49.520 --> 0:17:53.080 programming websites about two decades ago, so that's not something we, 0:17:54.119 --> 0:17:57.240 you know, are planning on necessarily using AI for at 0:17:57.240 --> 0:17:59.960 this time. You know, once you get start up with scores, 0:18:00.520 --> 0:18:02.440 we do a lot more than just generate a website. 0:18:02.440 --> 0:18:08.080 We hosted, deal with bandwidth, cybersecurity, DDoS protection, dns as 0:18:08.080 --> 0:18:12.320 a seal, certificates, domain registration, you know, just a myriad 0:18:12.359 --> 0:18:15.919 of things that you need after you, you know, have 0:18:16.040 --> 0:18:18.680 designed the website, and we do that for sixteen dollars 0:18:18.760 --> 0:18:22.000 a month as a starting point, so you know that 0:18:22.040 --> 0:18:25.240 stuff is as relevant as ever for our customers. I'll 0:18:25.280 --> 0:18:28.000 say two things about how we've been incorporating AI in 0:18:28.080 --> 0:18:30.760 large language models today and where we're going to be 0:18:30.760 --> 0:18:33.960 incorporating them in the future. So one of the main 0:18:34.000 --> 0:18:36.800 reasons why people have a trouble starting with scorespace is 0:18:36.840 --> 0:18:38.960 they say their content is not ready, they don't have 0:18:39.000 --> 0:18:40.920 the images they need for their site. They don't know 0:18:40.960 --> 0:18:43.119 how to write an about page, they don't have their copyright. 0:18:43.520 --> 0:18:47.240 So actually, this past Monday, right before earnings, we introduced 0:18:47.320 --> 0:18:53.320 chat Beat GPT based large language model content generation in 0:18:53.840 --> 0:18:55.520 all of our text fields and we launch that and 0:18:55.560 --> 0:18:56.920 beta to our circle community. 0:18:57.240 --> 0:18:58.840 So we're super excited about that. 0:18:59.359 --> 0:19:02.560 The other place, did that moment that you announced that 0:19:02.600 --> 0:19:07.080 you were integrating with open AI, did that clearly make 0:19:07.119 --> 0:19:09.360 a lift? Did your people start to turn to say 0:19:09.359 --> 0:19:11.919 this is exciting, this is going to change dull or 0:19:11.920 --> 0:19:13.359 are they just like yes, obviously? 0:19:14.800 --> 0:19:16.639 I think it was more of yes, obviously. You know, 0:19:16.680 --> 0:19:19.320 we've been aware of these models for months. I mean, 0:19:19.400 --> 0:19:22.040 AI has been part of setup in our industry for 0:19:22.119 --> 0:19:25.440 I believe about eight years, so we've been looking at 0:19:25.440 --> 0:19:28.600 it extensively, which kind of brings me to the second 0:19:28.600 --> 0:19:32.159 place where we're incorporating AI. In Q one, we launched 0:19:32.160 --> 0:19:35.800 something called Scorespace Blueprint, which lets people get started building 0:19:35.800 --> 0:19:39.040 a template and bypassing our template store, that's a perfect 0:19:39.040 --> 0:19:42.640 spot for us to integrate essentially prompt engineering on top 0:19:42.680 --> 0:19:44.959 of a large language model. You can tell us more 0:19:44.960 --> 0:19:47.600 about what you want and we can generate those sections 0:19:47.640 --> 0:19:50.159 for you so that you don't have to be picking 0:19:50.160 --> 0:19:52.680 a full template out at once. So perfect place is 0:19:52.680 --> 0:19:55.000 where we expect to see a lot of AI tailwinds. 0:19:55.800 --> 0:19:58.880 It's interesting, isn't it, ed at the moment that poor 0:19:58.920 --> 0:20:00.840 people come on to want to talk about their general 0:20:00.880 --> 0:20:03.439 earnings and we go straight for the AI focus. But 0:20:03.480 --> 0:20:05.639 a lot of this is about how on earth ed 0:20:05.720 --> 0:20:07.760 I think people are going to be coding in the future. 0:20:07.840 --> 0:20:09.600 People are going to be burning in the future. 0:20:10.080 --> 0:20:12.960 Anthy I have to ask you on self reflection how 0:20:13.080 --> 0:20:15.840 much you feel an existential threat. The debate that I 0:20:15.880 --> 0:20:20.320 hear daily is do we even need computer scientists anymore? 0:20:20.480 --> 0:20:21.359 Do we need coding? 0:20:21.400 --> 0:20:23.800 I know that you explained that you've taken that process 0:20:23.800 --> 0:20:26.160 away twenty years ago, but you look at the demos 0:20:26.160 --> 0:20:27.960 from Google on Wednesday. 0:20:27.960 --> 0:20:28.440 I was there. 0:20:28.720 --> 0:20:32.280 Look at what open ai demonstrates. Anyone can request code 0:20:32.440 --> 0:20:35.560