Speaker 1: From the hard of We're Innovation, Money and Power Collie
Speaker 1: in Silicon Vallet, NBM. This is Bloomberg Technology with Caroline
Speaker 1: Hide and Ted loved Love. I'm Caroline Hide at work
Speaker 1: Bloomberg's World headquarters in New York and I made Love
Speaker 1: law out here in San Francisco. This is Bloomberg Technology
Speaker 1: coming up. Amazon the latest to show love for AI.
Speaker 1: In Andy Jesse's annual shareholder letter, the CEO pledges to
Speaker 1: keep investing in such growth areas despite cost cutting initiatives.
Speaker 1: We're going to dive deep into the world of crypto
Speaker 1: as Ether tops two thousand U S dollars after its
Speaker 1: software update went off without a hitch. John wuerav Labs
Speaker 1: joints to discuss plus, how does a four day work
Speaker 1: week sound. We'll speak with Nobel Prize winning economist Christopher Sarides,
Speaker 1: who says AI it may increase productivities so much will
Speaker 1: shave a day off your weekly work calendar. At first,
Speaker 1: a big name and a big outperformer in the market
Speaker 1: is Amazon as well. You look at the gains the
Speaker 1: stock has made. It took it a while to get
Speaker 1: going after they introduced two new large language models. We're
Speaker 1: going to talk a lot about this throughout the day
Speaker 1: on Bloomberg Television, but it's focused pretty firmly on cloud customers,
Speaker 1: a tool for generating text, but also a sort of
Speaker 1: platform to foster an ecosystem of AI. That stock up
Speaker 1: eight tens of percent on a two day basis, but
Speaker 1: really jumping higher caroline in this early trading of Thursday's session. Yeah,
Speaker 1: and the Titan announcement all came within a focus from
Speaker 1: Amazon CEO Andy Jase on or where they're going to
Speaker 1: be investing. It's his second annual letter to shareholders, and
Speaker 1: he read a pledge to keep putting money into big,
Speaker 1: long term mets despite those cost cuts and an uncertain economy.
Speaker 1: He's moving ahead with a global expansion, looking at efforts
Speaker 1: to become a bigger player on groceries and healthcare and
Speaker 1: of course as a generative AI part. Let's talk all
Speaker 1: of that with Bloomberg's Spencer Soap, and let's go to
Speaker 1: the old school Amazon and they might say that AI
Speaker 1: is an old school for them too, but let's talk
Speaker 1: about groceries. Let's talk about e commerce. I mean, where
Speaker 1: are they looking to expand there on groceries in e commerce?
Speaker 1: Just because there's such huge consumer spending categories, and it's
Speaker 1: not really new. You know, Amazon has been trying that
Speaker 1: for a while now, you know, groceries more than a decade,
Speaker 1: and then they had that the big Whole Foods acquisition
Speaker 1: several years ago, which has kind of fallen flat. They've
Speaker 1: got this new iteration of a supermarket. They've tried, they
Speaker 1: tried Amazon Go. They've had a lot of false starts
Speaker 1: on it, but it's still just such a huge spending category.
Speaker 1: And then it doves tails nicely with healthcare, particularly pharmacy,
Speaker 1: and Amazon is trying a lot of the same old
Speaker 1: tricks that other big retailers try, like you know, cheap,
Speaker 1: cheap prescription drugs. You know, everybody and his brother does that,
Speaker 1: so it's it's not really differentiating, but they remain they
Speaker 1: remain important targets for Amazon just as a way to
Speaker 1: grow revenue because there's so much money spent in those
Speaker 1: in those areas spend. So the commentary around AWS is
Speaker 1: really interesting. You know, this has been the cash cow
Speaker 1: for Amazon, and let yeah, Jasse points out the short
Speaker 1: term headwinds the challenges facing AWS, and then gave us
Speaker 1: this kind of long time horizon of how well it
Speaker 1: can do even the next decade. Yeah, and he was
Speaker 1: he was definitely trying to you know, fleck back to
Speaker 1: history where Amazon faced difficult economic conditions and prevailed, you know,
Speaker 1: did made the hard decisions, made tough choices, but still
Speaker 1: came out at the end of the at the end
Speaker 1: of the tunnel. Anythink, trying to emphasize that Amazon is
Speaker 1: still a strong company, that that can emerge through this uh,
Speaker 1: through it through a downturn, and come out stronger on
Speaker 1: the other end. And it's really the one area where
Speaker 1: he can kind of gin up some some excitement and enthusiasm.
Speaker 1: You know, that's really what he had to do with
Speaker 1: this letter. The stocks down you know, about half nearly
Speaker 1: nearly half from its pandemic highs. You know that that
Speaker 1: rips you know, not just investors, but also employees who
Speaker 1: get a lot of their compensation by the by the
Speaker 1: stock value. Then also all of the cuts of deteriorated morale.
Speaker 1: So he's got to you know, it's a heavy lift
Speaker 1: for him, but he's got to do something to try
Speaker 1: to try to energize this company right now. And at
Speaker 1: the end of the letter he tries to do just that.
Speaker 1: With the focus on artificial intelligence, trying to remind us
Speaker 1: that for decades they've been looking at machine learning, they're
Speaker 1: looking at chip investment there, but just talk to us
Speaker 1: about the large language models that are being offered and
Speaker 1: what makes it different because it's not a chatbot. Yeah,
Speaker 1: and I think what Amazon is really trying to say
Speaker 1: is listen. You know, if you look at the history
Speaker 1: in the marketplace model, they just kind of want to
Speaker 1: be in the middle of it. Amazon wants to position
Speaker 1: itself as a as a as a marketplace where you
Speaker 1: go to access these tools, and as long as it's
Speaker 1: got people coming for those tools, it's going to get
Speaker 1: the best tools that people want exposure to. So I
Speaker 1: think it's really looking looking to make itself, uh, you know,
Speaker 1: a marketplace for ideas and a can do it for
Speaker 1: these ideas to be utilized. Right Bloomberg Spencer, Soapa or
Speaker 1: Addie Seattle, thank you and stay with us on Bloomberg Television.
Speaker 1: We have a conversation later today with AWS CEO Adams
Speaker 1: Alpski that you don't want to miss at two pm
Speaker 1: East and eleven am Pacific. I've been speaking carow to
Speaker 1: some AWS custom this morning. We certainly have some interesting
Speaker 1: AI related questions to put to him. And another key
Speaker 1: story that we're following SoftBank moving to sell more of
Speaker 1: its stake in Chinese Internet. John Ali Baba, I'm winding
Speaker 1: with that initial bed that spurred Massochi's son to really
Speaker 1: take ambitions to invest billions of dollars into other startups,
Speaker 1: trying out some pieces safe more is isabel Lee and
Speaker 1: why sell out and in what way are they setting out?
Speaker 1: So this is really interesting. So SoftBank is looking to
Speaker 1: sell a majority of its steake to China to really
Speaker 1: trim to Availibaba, to trim it stake in China and
Speaker 1: to raise fund. So this is quite a move because
Speaker 1: from holding a majority stake at one point around thirty
Speaker 1: four percent, they're whittling it down to four percent three
Speaker 1: point ninety eight to be exact. So this year they're
Speaker 1: looking to sell seven billion worth of shares. That's following
Speaker 1: last year where they sold around twenty nine billion. And
Speaker 1: the important thing to note here is that these are
Speaker 1: prepaid forward contracts, which means that they could still buy
Speaker 1: back the shares, but from the previous deals they just
Speaker 1: didn't hold on to those and just sold them. And
Speaker 1: this all comes at a time that the Vision Fund
Speaker 1: bet the bets are startups to SoftBank, I just haven't
Speaker 1: fed that overall business. Well, it's why the market's interpretation
Speaker 1: of this is so interesting. You know, it says something
Speaker 1: about China and investors exposure to China, but it also
Speaker 1: says quite a lot about soft Bank, right about what
Speaker 1: do we take away from this, about how soft Banks
Speaker 1: having to maneuver given the losses that it suffered from
Speaker 1: its startup bets. So this is really quite a pivotal
Speaker 1: moment because you're right, there's so many things at play here. First,
Speaker 1: for SoftBank, they lost a lot of money when they
Speaker 1: were investing a lot of money in Vision Fund, and
Speaker 1: as we know, a lot of those startups are now
Speaker 1: fledgend companies. And SoftBank said that they want to exercise
Speaker 1: regular they want excess financial prudence, they want to just
Speaker 1: cut back on risks, and they also want to raise
Speaker 1: money for the chip making design firm they're looking to
Speaker 1: take a public called arm But at the same time,
Speaker 1: this comes at a time when Ali Baba two hundred
Speaker 1: billion giant has broken down into six units, six baby
Speaker 1: babas as some people have called it. But we don't
Speaker 1: know how that's going to play out, because clearly there
Speaker 1: will be favorites. For instance, how bout that's a pow
Speaker 1: joel of Ali Baba, Likely that will do well, but
Speaker 1: what about the others. So there's so many factors that
Speaker 1: play here. China is now looking to really be more
Speaker 1: friendly to entrepreneurs, but then who still knows. I mean,
Speaker 1: this comes after several years of intense crackdown on Chinese
Speaker 1: tech giants. Ali Baba included all Right bloombergs Isabel Lee
Speaker 1: on the China Tech Beat. Thank you. Let's talk crypto.
Speaker 1: Let's talk ef right now at top two thousand dollars
Speaker 1: for the first time since August, after a widely anticipated
Speaker 1: software upgrade to what is the most commercially important blockchain
Speaker 1: went pretty according to plan and worries those initial rapid outflows,
Speaker 1: it seemed to be proved unfounded to see yup more
Speaker 1: than five percent as we speak. John Woo, president of
Speaker 1: Ava Labs building smart contracts platform Avalanche, is with us.
Speaker 1: Always great to have you in the house. It's nice
Speaker 1: to see you, Carol. Let's talk about what this upgrade means.
Speaker 1: I know that there's interoperability with Ethan, your platform that
Speaker 1: you're building. Is this going to help yet further just
Speaker 1: build back a little bit of confidence in the space
Speaker 1: a little yes. I mean it's a fantastic thing in
Speaker 1: the sense that going from proof for work to proof
Speaker 1: for stake basically decreases the energy requirement to run ethereum.
Speaker 1: The short term relief is basically it went without a
Speaker 1: technical glitch and there was not as much selling of
Speaker 1: eth out of this. So that's why ethereum is breaking
Speaker 1: through two thousand and the whole space is actually frankly
Speaker 1: doing decent, but it's important to understand why it's sing
Speaker 1: so well and who's buying it and that kind of thing. Yeah,
Speaker 1: because there is This is where we get the distinction
Speaker 1: between Bitcoin, which generally is just an asset and meant
Speaker 1: to be a store of value, then got e which
Speaker 1: the hope is around smart contracts, That hope is around adoption.
Speaker 1: But is that going to become an obvious use case
Speaker 1: right here, right now because we don't wait for the
Speaker 1: killer DAP And it does, and that is a use
Speaker 1: case for people in the crypto ecosystem in order to
Speaker 1: get yield. Now they can stake their ethereum, So that's
Speaker 1: very positive for in etherium, in crypto asset people. In fact,
Speaker 1: a lot of this rally we've seen in the last
Speaker 1: year to data to speak, it's been a better asset
Speaker 1: class than any other asset class, even tech stocks. Is
Speaker 1: because it's been driven by on chain people, crypto natives,
Speaker 1: and also international people. It's not so much that new
Speaker 1: money or the institutional adoption interesting and naturally it's all
Speaker 1: about well teasing out potentially future international and institutional adoption
Speaker 1: at the moment end where well, there's an NFT week
Speaker 1: going on here in New York and of a plenty
Speaker 1: of people focusing on the upgrade. But were you doing
Speaker 1: some sort of watch party out there at SF No,
Speaker 1: no watch party for me. For context, John twenty four
Speaker 1: hours ago, Kate Lawrence of bloc Celerat was on, We're
Speaker 1: talking about how for the industry, right amid all of
Speaker 1: the volatility in the pricing of certain tokens, people still
Speaker 1: watch the technological for the technology grow updates. My question
Speaker 1: is why why is it such a key moment for
Speaker 1: an industry to track the underlying technology that powers those platforms.
Speaker 1: So earlier I just said that the rally has been
Speaker 1: drawn by native crypto people and in my opinion for
Speaker 1: this asset class that continue to grow in price, at least,
Speaker 1: you really really need institutional buyers to come into the space.
Speaker 1: And for real institutional buyers to come into the space,
Speaker 1: you need real utility, real world use cases, and you're
Speaker 1: seeing that. You know, one of the big things for
Speaker 1: NFT NYC this time around versus last year is that
Speaker 1: although there are fewer people here, there's quality brands. A
Speaker 1: lot of brands are coming to see how the NFT
Speaker 1: construct can help them with their loyalty plans and loyalty
Speaker 1: programs and also increase engagement. So you're seeing some real
Speaker 1: use cases and discussion of building real things for big brands.
Speaker 1: You know, John, when last you were on with us
Speaker 1: is the afternoon the SVB collapsed, and you were going
Speaker 1: to come on and talk about what we're talking about
Speaker 1: right now, and we got sidetracked. In of all the
Speaker 1: volatility in recent weeks in markets, the industry's access to funding,
Speaker 1: what are you seeing in New York City among that
Speaker 1: NFT conversation is that a marketplace that's back on track
Speaker 1: and that people are kind of optimistic about investing in.
Speaker 1: So you're not seeing the OTC markets or the on
Speaker 1: ramps like FIAT like through coin Base into the crypto
Speaker 1: ecosystem really picking up. Yet they are still hesitant, but
Speaker 1: the excitement inside the ecosystem of crypto has been reinvigorated.
Speaker 1: Most of this price rally, people who don't realize happened
Speaker 1: right after SVB. It was a reminder to the crypto
Speaker 1: native people as to why they got into this space originally,
Speaker 1: the mistrust they have for large institutions. You know, that's
Speaker 1: why bigcoin became very popular after two thousand and eight.
Speaker 1: And because of that reminder, I think it reinvigorated the
Speaker 1: crypto native community. We saw a lot of uptick in
Speaker 1: Bitcoin and if maybe not so much the old coins job,
Speaker 1: but talk to us about your own initiatives right now,
Speaker 1: because you say there's utility, there's purpose. Big brands, well,
Speaker 1: you've got some key financial players coming on to try
Speaker 1: and understand how they can use blockchain technology, right name
Speaker 1: some of the people and what you're really building. So
Speaker 1: from what I'm seeing, especially in the US asset managers,
Speaker 1: they want to be involved in the space, but they're hesitant.
Speaker 1: They're not sure of the regulatory framework, and they need
Speaker 1: to learn the technology better. So this is why we
Speaker 1: announced yesterday a project called Spruce, which is a public
Speaker 1: blockchain permission only by the ky c k y b
Speaker 1: AML functionality. We're doing this in part with Wellington, trow
Speaker 1: Price and whis Entry. What they're going to experience is
Speaker 1: what the ability to see the power of execution and
Speaker 1: settlement in real time, the cost savings of putting this
Speaker 1: in this system together, and it's a safe place because
Speaker 1: it's a token valueless transfer. So it's a test net,
Speaker 1: but they will be able to experience an institutional defy component.
Speaker 1: No one's been able to do this so far, and
Speaker 1: this is gonna be the first time they can really
Speaker 1: explore defy. John, I get what the Spruce test net
Speaker 1: offers to both the buy and sell side in terms
Speaker 1: of access. You're a businessman, I'm actually quite curious about
Speaker 1: how you make money off this model. What is the
Speaker 1: business that you've created here? Well, first we have to
Speaker 1: create adoption, and this is the first step towards adopting this.
Speaker 1: So All the Labs is a software technology company. At
Speaker 1: some point we will provide services no different from AWS
Speaker 1: for things in the cloud. Instead of storage and compute power.
Speaker 1: Services will be providing different features and tools for developers
Speaker 1: and for places like Wellington or Tiro or Wisdom Tree
Speaker 1: to create their own applications, for them to create their
Speaker 1: own them or their marketplace, for them to create their
Speaker 1: own lending barring DAP. And right now we've gotten partners
Speaker 1: in the applications and we've gotten the traditional institution to
Speaker 1: try things out and see what DeFi is all about. John,
Speaker 1: we have a lab's good to catch up. Thank you
Speaker 1: for coming back on the show. Now coming up. In
Speaker 1: an effort to reduce its reliance on China, Apple is
Speaker 1: putting India in the spotlight and tripling production in what's
Speaker 1: now considered the world's fastest growing smartphone market. Caroline sick
Speaker 1: with India because we're also watching shows of emphasis. Sales
Speaker 1: outlook look pretty disappointing. End that really under schools just
Speaker 1: how clients are tightening it budgets. They're trying to weather
Speaker 1: this economic slowdown. Is a sea off by ten percent
Speaker 1: in the last couple of days. From New York and
Speaker 1: from San Francisco, this is ret It's time now for
Speaker 1: talking tech trucking startup Trailler. Well, it's winding down its
Speaker 1: business in Pakistan and stopped taking new orders last month.
Speaker 1: It's according to sources, now says the Egypt based platform
Speaker 1: that connects hippers to carriers. I was looking to exit
Speaker 1: an economy that's going through one of its biggest crises. Meanwhile,
Speaker 1: US purchases from machine of machines from Taiwan to make
Speaker 1: computer chips they rose to a record hive seventy one
Speaker 1: million in March. That says the Biden ministration here is
Speaker 1: working to reinvigorate the domestic chip industry. Taiwan saw its
Speaker 1: USX sports wherese one the forty two percent in the
Speaker 1: month in March from a year earlier. It's all according
Speaker 1: to data from the Ministry of Finance. An Apple assembled
Speaker 1: more than seven billion dollars worth of iPhones in India
Speaker 1: last fischool year, tripling the production there after accelerating a
Speaker 1: move beyond China. Now the iphonemaker now makes almost seven
Speaker 1: percent of its phones in India, according to sources and
Speaker 1: ed we're going to stick on that theme. Yeah, it's
Speaker 1: a really key piece of reporting in an ongoing situation
Speaker 1: for Apple. That's bringing Anna Agran, a senior tech analyst
Speaker 1: at Bloomberg Intelligence, so in shore. Apple is building more
Speaker 1: iPhones in India and exporting more iPhones in India. In
Speaker 1: your fundamental analysis, what's the net result for Apple financially. Yeah, so,
Speaker 1: you know, when you look at it, I think it's
Speaker 1: just more of a supply chain issue than financial because,
Speaker 1: frankly speaking, the best supply chain is in China. It's
Speaker 1: taken about twenty years to build that. So they build
Speaker 1: it anywhere outside it's going to be slightly more expensive
Speaker 1: in the first few years. But frankly speaking, when we
Speaker 1: saw back in November when because of COVID the iPhone
Speaker 1: pro factory shut down, it did have an impact on
Speaker 1: them financially. That too, plus the ongoing geopolitical tensions between
Speaker 1: the US and China. You know, it is in the
Speaker 1: best interest of Apple and Apple shareholders that they diversify
Speaker 1: the supply chain outside of China to other regions, whether
Speaker 1: it's Vietnam, India, Mexico, or almost everywhere. I would say,
Speaker 1: and what about the end user in India as well.
Speaker 1: It's not only about supply from there, it's the demand
Speaker 1: there that they want to satiate. You Yeah, I think
Speaker 1: this is one of one of the most fun things.
Speaker 1: You look at it. You know, if Apple's installed base
Speaker 1: in India is so small compared to the population, which
Speaker 1: means it is going to be a very big growth
Speaker 1: market for them over the next decade. They're opening a
Speaker 1: store next you know, next week in India, and you know,
Speaker 1: we have looked at some numbers. So if they are
Speaker 1: about let's say, six hundred million smartphones in India, you know,
Speaker 1: Apple only plays in that ten percent of the market.
Speaker 1: I mean, they have a very small market share, not
Speaker 1: even ten percent there. The market share is miniscal. Less
Speaker 1: than five percent of Apple's iPhone revenue comes from India
Speaker 1: based on artwork, and I think this is this is
Speaker 1: a big growth opportunity for them in the coming years,
Speaker 1: and largely because as the middle class in India you know,
Speaker 1: becomes richer and and and it's more affluent, they're able
Speaker 1: to afford a luxury product like Apple. You know, currently
Speaker 1: that market is dominated by Android. We also reported that
Speaker 1: like local regulations require you know, components sourced and supply
Speaker 1: chain source within that nation. Apple seems to be kind
Speaker 1: of rethinking it's global strategy right now when it comes
Speaker 1: to India. How quick does that ramp in market opportunity come.
Speaker 1: It seems like this is a long term project, right Yeah, yeah, Yeah,
Speaker 1: it is going to be a long term project because
Speaker 1: you know, but I mean, as you can think about it.
Speaker 1: If ninety percent of the iPhones are under let's say,
Speaker 1: you know, three hundred four hundred dollars, I shouldn't say iPhone,
Speaker 1: but of the smartphones are under three hundred dollars, Apple
Speaker 1: doesn't play in that market, so it's can't even tap
Speaker 1: into it. But it's as that middle class becomes more
Speaker 1: raflu when they are richer, the per capita income goes up,
Speaker 1: and I think that's more of a five to ten
Speaker 1: year trend rather than something that will happen over the
Speaker 1: next couple of years and giving us the global perspective.
Speaker 1: We love it. Granna, thank you of Blomberg Intelligence. Let's
Speaker 1: talk about now we Work a bench just started by
Speaker 1: we Work and a private equity firm, Roan Group. Oh, accordingly,
Speaker 1: it's defaulted on a loan for a San Francisco office tower. Now,
Speaker 1: the two hundred and forty million dollars loan was for
Speaker 1: a building in San Francisco's Financial District, which is owned
Speaker 1: by funds managed by the venture formed by we Work
Speaker 1: and Roan back in twenty nineteen. That was to buy
Speaker 1: an oversea with estate led. Welcome back to Bloomberg Technology.
Speaker 1: I'm Caroline Hide in New York and Imed Ludlow here
Speaker 1: in San Francisco. It's going to check on those markets. Caroline.
Speaker 1: This is what your technology sector looks like in the
Speaker 1: equity space, and that's that one hundred continuing to push higher,
Speaker 1: up one point six percent. You've got the kind of
Speaker 1: softening of data both on the jobs and inflation front,
Speaker 1: which is kind of fueling the idea that actually, when
Speaker 1: you come to the FED in this rate hiking cycle,
Speaker 1: we might be nearing the end. You can see out
Speaker 1: performance as well in the US listed shares of Chinese
Speaker 1: technology companies and bitcoin off session high as we were
Speaker 1: at a fifty week high on that bitcoin, but kind
Speaker 1: of pulled back a little bit near thirty thirty thousand,
Speaker 1: five hundred dollars per token. A lot of movement in
Speaker 1: the single names in the stock market around AI, Amazon
Speaker 1: pushing higher, both based on the annual shareholder letter from
Speaker 1: CEO Andy Jats up three point five percent, but also
Speaker 1: the news around their large language models, which I know
Speaker 1: you're going to get into. Other names gaining C three
Speaker 1: AI and some giving games back big Bear down seven percent,
Speaker 1: all of them kind of looking at how to use
Speaker 1: generative AI tools, but in their enterprise or cloudspace, which
Speaker 1: is where Amazon is really focused. Carrect Yeah, Big Bear
Speaker 1: looking to potentially sell more stock in the future, supply
Speaker 1: wearing a lower But let's go back to where you're
Speaker 1: just hinting out the Amazon News because it's joining Microsoft,
Speaker 1: it's joining Google, it's joining everyone basically in the generative
Speaker 1: AI race. End announcing technology aimed at its cloud customers
Speaker 1: in particular, as well as marketplace for AI tools from
Speaker 1: other companies. Now, the Amazon Web Services unit announced not one,
Speaker 1: but two of its own large language models, one designed
Speaker 1: to generate text and another that could help power web
Speaker 1: search personalization. But and it's big, but plans to release
Speaker 1: a chatbot as yet. But let's dig into this whole
Speaker 1: world of generative AI and in particular chat GPT. The
Speaker 1: revolution that basically seems to have opened, could it actually
Speaker 1: open for productivity to mean that you and I have
Speaker 1: just a four day workweek. Let's ask Nobel Prize winning
Speaker 1: labor economists. Sir Christopher Pisorealis is with US recently said
Speaker 1: that the labor market could adapt quickly enough your work
Speaker 1: has been so thoughtful about automation, the impact of technology
Speaker 1: on the way in which we can be productive. Do
Speaker 1: you think we'd really get to a four day work week?
Speaker 1: I think so, yeah, I think it's feasible. I mean,
Speaker 1: let me put it that way. If you see the
Speaker 1: skills or the componenses that companies are demanding now they're
Speaker 1: mostly demanding, it's basically down to data processing. Data is
Speaker 1: the big resource that companies have now, it's data processing.
Speaker 1: It's communication of that process. Seem to both subordinates and
Speaker 1: light managers. Now when you get it technology that chatter
Speaker 1: GPT or other language, well, you basically have the analysis
Speaker 1: of that day right in front of you ready, much
Speaker 1: faster than you must can do it. Well, that's what
Speaker 1: we mean by higher productivity, and Professor, get the machinery
Speaker 1: to do it. Then obviously then we have spare time
Speaker 1: ourselves and we have your money because we are more productive.
Speaker 1: At the same time, Professor Pusaridis, we asked our audience
Speaker 1: if they share your optimism on the impact of generative
Speaker 1: AI and a four day work week. This is what
Speaker 1: they had to say. The results fifty two percent of
Speaker 1: respondents fifty three percent saying that a four day work
Speaker 1: week is coming soon because of generative AI. Twenty nine
Speaker 1: percent of them said, not in our lifetime. What is
Speaker 1: the timeline that you see. Is this a decade out
Speaker 1: from being true? I would think so, I would place
Speaker 1: it at a decade. Yeah, I was thinking twenty thirty maybe,
Speaker 1: But these things are usually slower, And actually, if I
Speaker 1: were to recommend it, to advise someone about it, I
Speaker 1: would advise to be slower because it is going to
Speaker 1: require some readjustments of the things we're doing. I mean,
Speaker 1: not least about families, schooling, education, you know, I mean,
Speaker 1: we might have full day week in the labor market,
Speaker 1: but you do have to take into account and what
Speaker 1: happens with schools, for example, do they also have a
Speaker 1: full day week? What happens with public services, what happens
Speaker 1: with the people who will work there? You know, it's
Speaker 1: it's it's it's a complicated union. It's feasible and if
Speaker 1: there is will you're going to find a way. Well,
Speaker 1: you want your Nobel Prize from work on the impact
Speaker 1: of regulation on policy on the labor market. So is
Speaker 1: it regulation and policy that needs to sort of be
Speaker 1: the car that leads a horse there? Yes, they keep
Speaker 1: problem with the combination of good regulation so it doesn't
Speaker 1: stifle the labor market, which is basically what I studied
Speaker 1: from my Noble winning work work which will call frictions
Speaker 1: and at the same time making sure that it allows
Speaker 1: enough flexibility to the people to show their individual individual
Speaker 1: talents in the labor market, you know, to sort of
Speaker 1: unleash that talent if you like, and do the things
Speaker 1: they are doing best, which my work I call matching
Speaker 1: and the equality of matching. So essentially the way that
Speaker 1: the labor market will work in the best way is
Speaker 1: to improve the match between the worker and the capital
Speaker 1: equipment that that worker has, and I would include computers
Speaker 1: and software as the capital equipment that the worker has,
Speaker 1: and at the same time make sure that sufficiently well
Speaker 1: regulated that it doesn't lead to fraud to abuse of
Speaker 1: the technology. As I mentioned before, you know, these technologies
Speaker 1: are very they're very difficult to monitor. Yeah, and they
Speaker 1: are open to abuse, and we need to work very
Speaker 1: hard to think how to avoid that. Circristopher to that point,
Speaker 1: I mean, you let enough field funded review of the
Speaker 1: effects of automation on jobs, and a lot of the
Speaker 1: time there is a pushback from individuals from unions, from
Speaker 1: a nervousness of what it means for all of us.
Speaker 1: We see it in school children at the moment. We
Speaker 1: see it in people coming through university, people terrified of
Speaker 1: what generative AI really means for their skill set. How
Speaker 1: important is it to win hearts and minds and make
Speaker 1: sure that everyone feels that this actually builds on their skills,
Speaker 1: not detracts on them or put them out of work. Exactly,
Speaker 1: we need to train people, We need to give better
Speaker 1: information and show that it doesn't require that much upskilling
Speaker 1: to ensure that you can have a good job. Unfortunately,
Speaker 1: that comes from two different directions the way I see it.
Speaker 1: One of them is that is that people have naturally
Speaker 1: conservative in if we had changed, you know, if they're
Speaker 1: setting their ways, we're okay, you know what's all these
Speaker 1: new technologies they are going to disrupt us. They're going
Speaker 1: to make us change. That's the way that unions, for example,
Speaker 1: especially in Europe, actually that's the way they look at it.
Speaker 1: They try. Now now we have to we have to
Speaker 1: educate them somehows when we say we have it is
Speaker 1: not really so much to get academics like myself, but
Speaker 1: also the relevant government departments, employers, associations. But throughout modern history,
Speaker 1: technologies has changed our lives and has changed for the better.
Speaker 1: I mean, just think if we resisted electricity, for example,
Speaker 1: now where we will be. You know, it's we had
Speaker 1: so many you know, if we if we resisted, we
Speaker 1: will have all those appliances in our homes to that
Speaker 1: have made life so much easier. So that's one. That's
Speaker 1: one direction that is coming. The other one is that
Speaker 1: a lot of work you read now and what you
Speaker 1: hear about new technologies, it's about how many jobs would
Speaker 1: be lost, exactly three hundred medium jobs. But they never
Speaker 1: talk about how many jobs are going to be created.
Speaker 1: Because Professor pissardes that this is the human tension in
Speaker 1: the story, Right, will my job be eliminated by artificial
Speaker 1: intelligence tools? Are there specific sectors, specific areas of the
Speaker 1: technology industry where you think, yeah, generative AI is just
Speaker 1: it's just going to eliminate the need for a certain role. Oh,
Speaker 1: you can't think of plenty of those, you know. I mean,
Speaker 1: take legal assistance. What is a legal assistant? The job
Speaker 1: may have gone already. If it hasn't gone, an will
Speaker 1: go already. You basically have a lawyer who needs an
Speaker 1: assistant to go through all previous court cases, through all
Speaker 1: those legal books, through all those arpheads to find all
Speaker 1: the information is relevant to your case. Now, just as
Speaker 1: up chatter GPT tell me about sagic case, what do
Speaker 1: we know? And you get your four pages with all
Speaker 1: the information that you're a legal assistant will have got
Speaker 1: working seven for several days. You know, there are jobs
Speaker 1: that we've disappeared. But those those people, they are educated,
Speaker 1: they are highly people that can be more creative than
Speaker 1: our coad rooms going through pages and pages of script.
Speaker 1: So Christopher, Caroline and I have played with many of
Speaker 1: these generative AI tools. We've experimented using them for scripts
Speaker 1: in television news. I think both of us are relatively
Speaker 1: confident we won't be out of the job, at least
Speaker 1: in twenty twenty three. What other areas of the economy
Speaker 1: is productivity unlocked? Forget about replacing jobs. How does this
Speaker 1: make money for global economy? Is really quick? Okay? Number
Speaker 1: one data processing. If we use these technologies to generate
Speaker 1: more data, then they're all businesses with benefit from knowing
Speaker 1: more about their customer. You know the famous KYC No,
Speaker 1: you're a customer, We can get better information, and if
Speaker 1: we have better information, we can target our market in
Speaker 1: a much better way, less time, more productive, more money.
Speaker 1: And that's why I'm saying that we're going to have
Speaker 1: enough money that we can go on their fourth day
Speaker 1: week and have an extract on the weekend, which is
Speaker 1: which is wonderful at least what I'm saying. Yeah, it
Speaker 1: will be wonderful to have one next day. Wow, I
Speaker 1: think many people think it would be wonderful. London School
Speaker 1: of Economics Professor Nobel Prize winning economists, Sir Christopher Pissaridis,
Speaker 1: thank you for your time. Now coming up, we're going
Speaker 1: to get the pulse on the VC ecosystem in the
Speaker 1: first quarter of this year with pitchbook lead VC analyst
Speaker 1: Carl Stanford, who's going to break down the firm's latest
Speaker 1: reports and data. That's next. This is blamed Berg time
Speaker 1: for the VC round up. Lot of Mattica is looking
Speaker 1: to raise four hundred and twenty five million euros that's
Speaker 1: four hundred and sixty seven million dollars for a milan
Speaker 1: IPO this year and it's seeking evaluation of around five
Speaker 1: billion dollars including debt. The Italian gambling company backed by
Speaker 1: Apollo operates its Italy's regulated gaming market, is also active
Speaker 1: in online sports, bedding, and slot machine segments. Relativity Space
Speaker 1: plans to abandon future flights of its Terran one rocket,
Speaker 1: less than a month after it first tested the three
Speaker 1: D printed vehicle. The company will instead shift operations towards
Speaker 1: a previously planned larger rocket in hopes of filling a
Speaker 1: growing market need and better competing with industry leader leader
Speaker 1: space X and Bicosal. Venture firm Lux Capital has raised
Speaker 1: one point one five billion dollars in new funds that
Speaker 1: it plans to invest in startups focused on science and
Speaker 1: deep technologies, including biotech and artificial intelligence. It's the largest
Speaker 1: fund to date, and we'll be called Lux Ventures eight,
Speaker 1: taking the firm's total assets under management beyond five billion dollars. Caroline,
Speaker 1: I've got a nice close up of you there, a
Speaker 1: little bit of a technically which of ourselves a little lovely. Meanwhile,
Speaker 1: I mean it's interesting that you talk about a new
Speaker 1: fund coming from Lux Capital, because we're going to talk
Speaker 1: to us now about VC and perhaps how it's been
Speaker 1: stifled of late. Kyle Stamford, Today's VC spotlighters. Here here's
Speaker 1: the lead VC analyst O rout pitch Book, which just
Speaker 1: released its data about the health of the VC ecosystem
Speaker 1: in the first care of twenty twenty three, and health
Speaker 1: being the operative word here, right, How healthy or not
Speaker 1: healthy is it depends which you you are a comparing team.
Speaker 1: Comparing to twenty twenty one, it is not healthy at all.
Speaker 1: Comparing it to any year before that, it's holding up
Speaker 1: a little bit better than what the data might look like. Right.
Speaker 1: Exits are way down five point eight billion dollars in
Speaker 1: exit val you generated, extremely low. That will have impacts
Speaker 1: down the road. Fundraising was also low at eleven point
Speaker 1: seven billion close in Q one. That will have knock
Speaker 1: on effets down the road. But deal count is surprisingly high.
Speaker 1: We're asking me about thirty thirty nine hundred deals closed
Speaker 1: in Q one, which is higher than any quarter before
Speaker 1: twenty twenty one. So okay, and so that deal count,
Speaker 1: where are those checks being written at the moment? I'm
Speaker 1: not talking sect from talking like geography. Is it with
Speaker 1: that home in New York but you'll usually on the
Speaker 1: West coast? How does it break down from an America
Speaker 1: and global perspective? Sure, we're still seeing about you know,
Speaker 1: fifty percent of the deal count in the US is
Speaker 1: happening in San Francisco, New York, Boston, or LA. Those
Speaker 1: are by far the four largest markets, and San Francisco
Speaker 1: has dropped a little bit. Only about eighteen and a
Speaker 1: half percent of the deals were completed in San Francisco,
Speaker 1: which had been above twenty percent every year until now.
Speaker 1: So I think it's three quarters in the road there.
Speaker 1: But venture is getting much more diversified in the US.
Speaker 1: Right We've had four thousand funds closed in the past
Speaker 1: four years. Those are in the Midwest, They're in Miami,
Speaker 1: they're in Awesome, They're kind of everywhere rather than just
Speaker 1: being siloed into San Francisco and New York. Kyle, there
Speaker 1: are so many dichotomies and contradictions right now. On a
Speaker 1: day where Lots Capital comes out and says one point
Speaker 1: one five billion in new funds, largest ever single funds,
Speaker 1: and yet the data shows it's not being deployed. I
Speaker 1: was at startup Grind last night. Everyone is so optimistic
Speaker 1: about early stage precede getting checks written. Why is there
Speaker 1: this contradiction between the backward looking data and the vibe
Speaker 1: right now in this community? Right Well, I think we
Speaker 1: have to go back to those four thousand funds they
Speaker 1: were closed. A lot of those are going to be
Speaker 1: small funds one hundred fifty million under two hundred fifty million,
Speaker 1: which you're going to focus on the early stage. That area.
Speaker 1: The market is also much further away from you know,
Speaker 1: the public volatility that we've seen are the you know,
Speaker 1: the interest rate hikes that are really impacting the late
Speaker 1: stage and venture growth stage. So optimism is coming back
Speaker 1: to seed in early stage. I think this quarter one
Speaker 1: was the highest medium valuation at seed that we've ever
Speaker 1: seen our data at thirteen million dollars, which is, you know,
Speaker 1: extremely high and you know, double what we're seeing even
Speaker 1: three years ago. So there is optimistic at the early stage,
Speaker 1: especially because it's so far away from kind of the
Speaker 1: public market in the problems that we're seeing at the
Speaker 1: late stage. Kyle, you seem like a glass half full
Speaker 1: kind of guy. Let's go to the world of crypto
Speaker 1: and talk about your report. In the plunge in funding
Speaker 1: back to sort of twenty twenty or pre twenty twenty levels,
Speaker 1: what's happening in that sector. Well, again, I think, you know,
Speaker 1: crypto was the you know industry of this of the
Speaker 1: market two years ago, right, everything was happening through crypto.
Speaker 1: It was Web three, it was blockchain, it was everything
Speaker 1: that has now switched shifted over to AI. If you're
Speaker 1: an AI startup and you have you know, a novel
Speaker 1: use of the technology for general AI or some other
Speaker 1: like I AI technology that can increase the efficiency of
Speaker 1: these companies, that's where investors have shifted their focus now
Speaker 1: right again, looking for the you know, the emerging technology
Speaker 1: that they can really ride the tail winds on for
Speaker 1: the next few years. Told the Mark Grace, I guess, Caroline,
Speaker 1: my point is that on the ground, there's energy and
Speaker 1: optimism across all these spaces. John Wu earlier was in
Speaker 1: New York for a reason. Right he's having meetings talking
Speaker 1: about a very specific section of the crypto market. I mean,
Speaker 1: what are you hearing out there on the East Coast, Well,
Speaker 1: I'm hearing a bat a load of invitations that are
Speaker 1: going around the block at the moment, because it's an
Speaker 1: FT NYC and everyone's got a various event to go,
Speaker 1: and we've still got big VCS companies willing to put
Speaker 1: money on and to work to entertain, to bring people
Speaker 1: together to talk about growth. Cayle what's interesting for me
Speaker 1: and I love your takers, whether you can tell us
Speaker 1: about the pool of capital going towards diverse founders or not.
Speaker 1: Because we know that the NFT space is largely built
Speaker 1: by guys. Are we seeing women people of color managing
Speaker 1: to get checks in this environment? We're still seeing female founders,
Speaker 1: you know, not raised nearly the amount of capital that
Speaker 1: we would like to see, or we'd hope to see
Speaker 1: with all the talk in narrative around you know, getting
Speaker 1: more checks to that, you know, those founders over the
Speaker 1: past few years, but when you kind of zoom out further,
Speaker 1: there is more a lot more money going to those
Speaker 1: founders now than we have seen, you know, ten years ago,
Speaker 1: even five years ago. The past few years, there have
Speaker 1: been you know, quite a few women who have started
Speaker 1: their own funds who are focusing on women founders and
Speaker 1: helping get money to that aa in the market, but
Speaker 1: it just hasn't happened as fast as you know, we
Speaker 1: would hope. I guess what is the prediction, the outlook,
Speaker 1: the forward looking nature of all of this, Kyle, You know,
Speaker 1: there's discussion around a mild recession in the back half
Speaker 1: of this year. How does that manifest itself in private
Speaker 1: markets and for the world of startops. Sure. I mean
Speaker 1: what we're looking at really from that perspective is that
Speaker 1: late stage and venture growth stage of the market. There's
Speaker 1: a huge number of companies there. I think we pulled
Speaker 1: a stat that showed that the number of companies that
Speaker 1: are privately backed at the late stage has grown over
Speaker 1: to has more than doubled in the past five years.
Speaker 1: That's a huge number of companies that need a lot
Speaker 1: of capital, and a lot of that capital that is
Speaker 1: coming from hedge funds, mutual funds, private EU funds. Really
Speaker 1: built up the deal value of the past few years.
Speaker 1: They've gone away, so that area the market without the
Speaker 1: exit opportunities that they really need to release the pressure
Speaker 1: the venture market, they're in for a very struggle struggle
Speaker 1: year or you know, long struggles until that money is
Speaker 1: able to come back and get the money they need
Speaker 1: to grow. Kyle, great to have you in the house
Speaker 1: here in New York. We thank you for it. Carl Stamford,
Speaker 1: lead VC analyst Over at Pitchbook, an Air National guardsman
Speaker 1: is being sought by US agents on the intelligence league
Speaker 1: that according to a person familiar with the matter, who
Speaker 1: says Jack takesi Era is the focus of the Documents League.
Speaker 1: Pro Bloomberg's Amory Horndon joins us now with the details, Amh,
Speaker 1: what do we know, Well, there's just a lot of
Speaker 1: reports right now about this is the individual, as you mentioned,
Speaker 1: twenty one year old National guardsmen. The reports are that
Speaker 1: when these leaks happened, he was stationed at Fort Bragg.
Speaker 1: And there's still a ton of a ton of questions
Speaker 1: though that are out there. One is how and why
Speaker 1: this individual had access to these documents, and the documents
Speaker 1: that were posted on this discord chat at months ago,
Speaker 1: actually they have marks in them, clearly they were folded.
Speaker 1: So how did this individual get access and post these
Speaker 1: documents online is going to be one of the biggest
Speaker 1: questions obviously facing this investigation. And also, of course are
Speaker 1: there any more leaks actually out there, because remember this
Speaker 1: happened months ago and we're only finding out some of
Speaker 1: these stories. And for intelligence officials it's incredibly concerning because
Speaker 1: they're worried that potentially some of these documents have insight
Speaker 1: into how the US gathers intel. Interesting though, earlier this morning,
Speaker 1: as Biden is in Ireland on an international trip, He
Speaker 1: said that they were quote getting close to this individual
Speaker 1: and we could end up with an arrest today, A Marie,
Speaker 1: we need to bring it to us, and of course
Speaker 1: there is a deep technology element to all of this
Speaker 1: and the way it was distributed across Discord. We want
Speaker 1: to thank you for bringing us the latest Bloomberg's Amory Horden. Meanwhile,
Speaker 1: that does it for this edition of Blog Technology. Yeah,
Speaker 1: we have a really key conversation coming up with the
Speaker 1: AWS CEO. I want to get into the detail around
Speaker 1: what generative AI is going to do for Amazon. So
Speaker 1: much to recap four days in almost the weekend, busy
Speaker 1: day markets. Don't forget the podcast. You can get the
Speaker 1: podcast for the show on the terminal, Apple, Spotify, iHeart
Speaker 1: wherever Caroline you get your podcasts. Yeah, big show, big show,
Speaker 1: and more to come with your interview that's coming up
Speaker 1: two pm in New York time. But of course the
Speaker 1: CEO of Amazon Web Services, we can't wait for it.
Speaker 1: We're going to talk much more about generative AI across
Speaker 1: the shows today from New York. This is Bloomberg