WEBVTT - Frank McCourt Readying US TikTok Bid, Google's AI Announcements

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<v Speaker 1>From Marhart where Innovation of Money and Power Collie in

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<v Speaker 1>Silicon Valley, NBN.

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<v Speaker 2>This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

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<v Speaker 3>I'm Caroline hein And at Blouemog's world headquarters in New York, and.

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<v Speaker 4>I met Ludlow in San Francisco. This is Bloomberg Technology

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<v Speaker 4>coming up.

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<v Speaker 5>A new bidder emerges for TikTok.

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<v Speaker 3>We sit down with the Project Liberty founder Frank McCourt

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<v Speaker 3>to discuss us.

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<v Speaker 4>Will bring you the takeaways from Google's annual IO Developers Conference, an.

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<v Speaker 3>Open a eyed chief scientist who played a key role

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<v Speaker 3>in Sam Altman's Auster Pole's departing the company. We'll discuss

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<v Speaker 3>that and so much more throughout the hour. At first,

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<v Speaker 3>that's checking on these markets. There is a macro playbook happening,

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<v Speaker 3>and it is a cooler CPI print being digestif by

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<v Speaker 3>the market that sends stockston record highs, record highs on

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<v Speaker 3>the NASAC, recordize on global stocks. More broadly, the SMP,

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<v Speaker 3>the stock six one hundred over in Europe also getting

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<v Speaker 3>a lift because people start.

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<v Speaker 5>To factor in that. Maybe we'll we'll get those rate.

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<v Speaker 3>Cups from from the rev Federal reserve tenure yield, therefore

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<v Speaker 3>diving down seven basis points.

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<v Speaker 5>Bond's rally yields full.

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<v Speaker 3>Move on because the dollar is down, and what does

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<v Speaker 3>that mean Crypto is higher? We're seeing a real risk

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<v Speaker 3>on field to today's trade. We're up almost five percent

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<v Speaker 3>on bitcoin, but ed, what are you looking at on

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<v Speaker 3>the micro Okay?

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<v Speaker 4>So Google alphabet shares higher for a second day. We

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<v Speaker 4>will go later in the show to our reporter that

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<v Speaker 4>was on the ground, new AI, back search, new iterations

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<v Speaker 4>of the models. Clearly investors like something in there, so

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<v Speaker 4>we'll unpack all the new technology. There's a few other

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<v Speaker 4>things that I'm watching, some movies to the downside in

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<v Speaker 4>the megacaps that are a drag on the Nazak one hundred,

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<v Speaker 4>both Amazon and Tesla lower Amazon interesting because lower for

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<v Speaker 4>a second day after the news that Adams Lipsky is

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<v Speaker 4>leaving his AWS CEO and Matt Garman goes into the

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<v Speaker 4>Ado s CEO c and in.

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<v Speaker 6>Microsoft hier percentage one.

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<v Speaker 4>I put it in there as a proxy for open AI,

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<v Speaker 4>which we'll discuss later in the show. But it is

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<v Speaker 4>higher Caroline by a percentage point, very big AI focus

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<v Speaker 4>in a crowded field.

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<v Speaker 5>Right now, it is crowded.

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<v Speaker 3>And there also we're being crowded for newsflow right now,

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<v Speaker 3>particularly when we think about this world of social media,

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<v Speaker 3>the future ownership of social media, and a key player

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<v Speaker 3>of course that needs to be divested or indeed be

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<v Speaker 3>banned from the US.

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<v Speaker 5>We want to discuss TikTok now.

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<v Speaker 3>Welcome our Bloomberg TV and radio audiences worldwide to join

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<v Speaker 3>the project. Liberty founder and m Court Global Executive chairman

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<v Speaker 3>and billionaire Frank McCourt, who is building a consortium to

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<v Speaker 3>bid for social media at TikTok's US business.

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<v Speaker 5>Frank, welcome to the show.

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<v Speaker 3>And how much money do you actually have to be

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<v Speaker 3>offering to TikTok.

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<v Speaker 7>Well, it's too early to know how much the TikTok

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<v Speaker 7>is going to be sold for or if it's going

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<v Speaker 7>to be sold. We happen to believe it will be

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<v Speaker 7>sold and we're betting on that. We don't have the

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<v Speaker 7>information yet though on what exactly they're selling or peak

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<v Speaker 7>as the financial statements, so we can't really tell what

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<v Speaker 7>the price will be. But one thing that's important, Caroline,

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<v Speaker 7>is we're not interested in the algorithm, so we're interested

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<v Speaker 7>in actually an alternative web where people own and control

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<v Speaker 7>their data, own and control their identity. So we're not

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<v Speaker 7>interested in byte algorithm, which I think makes our bid

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<v Speaker 7>particularly unique.

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<v Speaker 6>Frank we will discuss later on that.

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<v Speaker 4>I think the technology plan that's important given that the

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<v Speaker 4>algorithm is essentially put on an export ban list by China.

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<v Speaker 4>But I'd be grateful in the first instance just to

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<v Speaker 4>go through some of the mechanics here if that's okay.

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<v Speaker 4>For example, have you spoken to TikTok or Bite Dance.

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<v Speaker 4>Have you spoken to the US government about this bid?

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<v Speaker 7>Yeah, we have not spoken to Byte Dance or TikTok.

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<v Speaker 7>We have spoken to a number of other actors in

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<v Speaker 7>this and have been encouraged to move forward with this approach.

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<v Speaker 7>Remember this is this is putting forward an alternative vision

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<v Speaker 7>for how the Internet operates right now, whether it's bytown,

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<v Speaker 7>whether it's TikTok rather or our own US platforms. Our information,

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<v Speaker 7>our data, our personhood actually is scraped from us aggregated

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<v Speaker 7>by these big platforms and they apply algorithms to it.

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<v Speaker 7>I think it's time pastime, really that we have an

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<v Speaker 7>alternative version of the Internet where we each own and

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<v Speaker 7>control our identity, owning control our data and we have

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<v Speaker 7>all the benefits of the Internet and the wonderful technology

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<v Speaker 7>that's there connecting all of us, but we're in charge

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<v Speaker 7>of us, so agency has returned to individuals. That's the

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<v Speaker 7>technology we've been building over the last almost five years.

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<v Speaker 7>I greenlit this project in December of twenty nineteen, so

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<v Speaker 7>the tech works. We actually have a proof of concept.

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<v Speaker 7>There's almost a million users now on this new protocol,

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<v Speaker 7>so now it's time to scale it up and give

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<v Speaker 7>people a real choice.

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<v Speaker 6>Frank, you mentioned other actors.

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<v Speaker 4>I'm conscious that the sequoiir in general Atlanta take, for example,

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<v Speaker 4>our US based firms that sit on the cat table

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<v Speaker 4>of byte Dance.

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<v Speaker 6>Do you have their support in your bid?

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<v Speaker 7>It's too early for me to make these statements. We've

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<v Speaker 7>retained Google Tyme Securities as our advisor, along with Kirklin

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<v Speaker 7>and Ellis as an advisor to put together all the

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<v Speaker 7>pieces of this bid. But let's be realistic. This is

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<v Speaker 7>early in a process. It's still very noisy. We don't

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<v Speaker 7>know exactly what byite Dance will be selling. They've filed

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<v Speaker 7>a lawsuit reso lay, so they're fighting this, but I

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<v Speaker 7>am confident at the end of the day, they'll either

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<v Speaker 7>have to sell or shut it down, and we don't

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<v Speaker 7>want to see TikTok shut down. There's one hundred and

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<v Speaker 7>seventy million users enjoying TikTok. We want to see them

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<v Speaker 7>continue to enjoy it. But again we're not interested in

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<v Speaker 7>the algorithm, which I think makes our bid very, very unique.

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<v Speaker 7>And we can migrate these users over to a new

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<v Speaker 7>version of the Internet where the one hundred and seventy

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<v Speaker 7>million users actually participate in the value they create and

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<v Speaker 7>are in charge of their data. Imagine a version of

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<v Speaker 7>TikTok where the version is clicking on the terms of

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<v Speaker 7>use of each of the one hundred and seventy million users,

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<v Speaker 7>rather than the one hundred and seventy million users clicking

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<v Speaker 7>on the.

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<v Speaker 8>Terms of use of one platform.

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<v Speaker 7>I don't think this data should be in the control

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<v Speaker 7>of any one person, one company, or a Chinese communist party.

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<v Speaker 7>I think it's important that we shift our mindset now

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<v Speaker 7>and shift the paradigm from the Internet we've been living with,

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<v Speaker 7>which is doing real harms and it's undermining democracy, it's

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<v Speaker 7>ripping society apart, and of course we're hearing more and

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<v Speaker 7>more about the harms toed children. Let's build a better version.

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<v Speaker 3>We are with Frank mccaun of course, a project and

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<v Speaker 3>Liberty found I'm a Cork Global executive chairman and across

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<v Speaker 3>radio and TV. We're discussing your potential bid for TikTok

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<v Speaker 3>if indeed TikTok is to be sold, and that is

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<v Speaker 3>a big if. But all of this sounds philanthropic. Want

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<v Speaker 3>any money back if you're going to be raising billions

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<v Speaker 3>millions of your own potentially on the line here, Yeah.

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<v Speaker 7>Of course, I think it's interesting that it sounds philanthropical

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<v Speaker 7>to you, because I do think it does have the

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<v Speaker 7>potential of being one of the biggest impact projects of

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<v Speaker 7>our lifetime. But this has to have commercial components to

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<v Speaker 7>it to be realistic. I mean, this can't be some

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<v Speaker 7>alternative internet that is, you know, better, better architected and

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<v Speaker 7>healthier for people, but no.

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<v Speaker 5>One uses advertising. How will you make money back? Is

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<v Speaker 5>this subscription based all of the above?

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<v Speaker 7>Let's think of it this way. Once you unleash the

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<v Speaker 7>power and the innovation and the invention of a data

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<v Speaker 7>sharing economy, we're going to see ideas and models that

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<v Speaker 7>far exceed what we have today. Right now, all of

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<v Speaker 7>this is tied up in just a few companies just

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<v Speaker 7>a few platforms. Let's unleash the innovation of everyone and

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<v Speaker 7>unleash and have the value sharing proposition be a bit different. So,

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<v Speaker 7>of course there'll be commercial users limited only by our imagination,

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<v Speaker 7>and maybe there'll be some advertising models. Maybe there'll be

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<v Speaker 7>some saying subscription models, but it has to be highly commercial.

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<v Speaker 4>Frank, sorry to interrupt you. There's a recurring question. I

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<v Speaker 4>think Caroline would back me up that I've been very

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<v Speaker 4>consistent in asking it, which is, there are one hundred

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<v Speaker 4>and seventy million US users of TikTok, and most of

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<v Speaker 4>them quite like using it as it is. Is there

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<v Speaker 4>anything you can tell me about the product plan or

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<v Speaker 4>your engagement with the existing user base that would convince

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<v Speaker 4>that one hundred and seventy million that they'll want to

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<v Speaker 4>continue using it whatever happens.

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<v Speaker 8>Yeah, of course.

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<v Speaker 7>This is the key to the transaction, is for them

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<v Speaker 7>to be excited about migrating to this new model of

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<v Speaker 7>the Internet, let's call it, where they own and control

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<v Speaker 7>their data and where they participate in the value. So

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<v Speaker 7>the user experience has to be every bit as easy,

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<v Speaker 7>polished and fun as it is now. But we wouldn't

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<v Speaker 7>users be excited about actually being in charge and actually

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<v Speaker 7>participating in the value.

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<v Speaker 6>And so this has to.

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<v Speaker 7>Be seamless in terms of the user experience, but the

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<v Speaker 7>underlying technology will be far far better the design of

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<v Speaker 7>the technology putting them in charge of themselves. So of

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<v Speaker 7>course it needs to be done in a way and

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<v Speaker 7>where the users are are as excited or more excited

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<v Speaker 7>about the new version. But remember right now there's a

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<v Speaker 7>risk there will be shut down. So we don't want

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<v Speaker 7>to see it shut down. We want to see the

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<v Speaker 7>one hundred and seventy million users continue to be on

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<v Speaker 7>a platform that our government is comfortable with and that

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<v Speaker 7>that byitedance quite frankly, is comfortable in selling it.

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<v Speaker 4>Frank we use wheres like consortium or even like coalition.

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<v Speaker 4>There are a number of people people who have raised

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<v Speaker 4>their hand about doing something with TikTok's US assets. Steve Minuchin,

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<v Speaker 4>former Treasury secretary, and Eric Schmidt, one of the Google founders,

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<v Speaker 4>kind of top of mind. Have you spoken to them

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<v Speaker 4>and proposed, for example, that you will just get together,

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<v Speaker 4>bring your intellectual capital together in one bid.

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<v Speaker 7>No, I have not, and I do want to distinguish

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<v Speaker 7>our bid from what at least I understand their bids

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<v Speaker 7>to be about we don't need Saudi money to do

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<v Speaker 7>this bid. Right, We're not talking about the same type

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<v Speaker 7>of architecture where we just replace you know, Chinese ownership

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<v Speaker 7>with another ownership and then we have a continue to

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<v Speaker 7>have a centralized, autocratic, surveillance based technology where we're users,

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<v Speaker 7>data is scraped and aggregated.

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<v Speaker 8>And so forth.

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<v Speaker 7>This is not Our version is not a top down approach.

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<v Speaker 7>Our version is empower the users. Empower people and make

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<v Speaker 7>this a people's bick. Make this something where individuals have

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<v Speaker 7>agency and choice and power return to them. The harms

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<v Speaker 7>that we're seeing with the Internet. And this is not

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<v Speaker 7>limited to TikTok right. Our own platforms are built with

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<v Speaker 7>the same model of scraping data and exploiting it. Isn't

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<v Speaker 7>it time we have a better model? And I see

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<v Speaker 7>this opportunity as a fantastic opportunity to take proven technology

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<v Speaker 7>and scale it and give people a choice, an alternative.

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<v Speaker 3>And frank, you've got people who are at the forefront

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<v Speaker 3>of that argument about the harms of social media, height

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<v Speaker 3>being one of them. With the anxious generation, it's all

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<v Speaker 3>I see on social media at the moment. David Clark,

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<v Speaker 3>so Tim Berners Lee who helped create the World Wide Web.

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<v Speaker 5>However, this sounds like.

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<v Speaker 3>You need crowdfunding Ultimately, how if you don't need Saudi money,

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<v Speaker 3>what money will you need when you get a price point.

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<v Speaker 7>I think there'll be a combination of private capital, public

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<v Speaker 7>what i'll call it public capital, and people's capital, so.

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<v Speaker 5>It will be crowdfunded.

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<v Speaker 7>Well, crowdfunding has an implication, right, I don't think we're

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<v Speaker 7>necessarily raising money on the Internet, so that's not.

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<v Speaker 6>What we're talking about.

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<v Speaker 7>But look, we've brought in Google tem securities to help

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<v Speaker 7>organize how we raise money. This should be the investors here,

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<v Speaker 7>should be abroad, should should really reflect the broad coalition

0:12:22.880 --> 0:12:26.520
<v Speaker 7>we're trying to create here about reclaiming the Internet right

0:12:26.559 --> 0:12:29.240
<v Speaker 7>and using this as an opportunity to do that. So

0:12:29.280 --> 0:12:31.880
<v Speaker 7>I would imagine in addition to private capital, there would

0:12:31.920 --> 0:12:36.920
<v Speaker 7>be pension funds, endowments, foundations, philanthropies that are interested in

0:12:36.920 --> 0:12:39.480
<v Speaker 7>a return, but not only a return on their capital.

0:12:39.480 --> 0:12:41.720
<v Speaker 7>They have a longer term horizon and they would like

0:12:41.760 --> 0:12:46.559
<v Speaker 7>to see the Internet re architected so it's better for

0:12:47.520 --> 0:12:51.359
<v Speaker 7>all of us. And it supports democracy, right, It supports

0:12:51.679 --> 0:12:56.360
<v Speaker 7>civil society, It protects young children and The book I

0:12:56.360 --> 0:12:59.040
<v Speaker 7>wrote recently called Our Biggest Fight gets into some detail

0:12:59.080 --> 0:13:03.280
<v Speaker 7>on the harms that the current version of the Internet

0:13:03.280 --> 0:13:06.320
<v Speaker 7>are doing to all of us. It's not limited to children,

0:13:06.360 --> 0:13:08.760
<v Speaker 7>but especially children, and I think our number one obligation

0:13:08.840 --> 0:13:09.760
<v Speaker 7>is to protect.

0:13:09.440 --> 0:13:14.600
<v Speaker 3>Kitchen an impact thought leadership there from Frank mccork, Project

0:13:14.600 --> 0:13:17.679
<v Speaker 3>Liberty founder and a Cork Global executive chairman, with thank

0:13:17.760 --> 0:13:19.719
<v Speaker 3>him for his time and his views on the.

0:13:19.640 --> 0:13:35.240
<v Speaker 9>Bid bleep blop, bleep blop rap peop blue people bop.

0:13:35.440 --> 0:13:39.200
<v Speaker 9>Time to get up, you silly little nerds way out.

0:13:41.360 --> 0:13:44.760
<v Speaker 4>That was DJ Ribia at the IO Developers Conference, testing

0:13:44.800 --> 0:13:48.439
<v Speaker 4>out Google's DJ mode that Google recently added to his

0:13:48.600 --> 0:13:50.280
<v Speaker 4>Generative AI Texts.

0:13:50.240 --> 0:13:51.160
<v Speaker 6>To Music tool.

0:13:51.240 --> 0:13:55.040
<v Speaker 4>Google also rolled out a new search engine that includes

0:13:55.080 --> 0:13:57.440
<v Speaker 4>responses written by AI.

0:13:57.520 --> 0:13:58.480
<v Speaker 6>Bloomberg's Judy of.

0:13:58.480 --> 0:14:01.880
<v Speaker 4>Love was at the Google Developers Conference under the Big

0:14:01.960 --> 0:14:06.200
<v Speaker 4>tent at that rave and joins us for more. Let's

0:14:06.240 --> 0:14:09.120
<v Speaker 4>put the DJ performance to one side for now. The

0:14:09.160 --> 0:14:12.200
<v Speaker 4>big news I think was AI powered search.

0:14:14.200 --> 0:14:17.360
<v Speaker 10>That's absolutely right, and this is a real seed change

0:14:17.400 --> 0:14:20.880
<v Speaker 10>in goodle search. For the past year, Doodle has been

0:14:21.000 --> 0:14:25.160
<v Speaker 10>experimenting with generative AI overviews, but that wasn't a special

0:14:25.240 --> 0:14:28.600
<v Speaker 10>test version of the product. Now they're rolling out generative

0:14:28.640 --> 0:14:32.600
<v Speaker 10>AI overviews in mainstream search, so all users in the

0:14:32.680 --> 0:14:35.200
<v Speaker 10>United States will begin seeing them this week.

0:14:36.560 --> 0:14:40.040
<v Speaker 3>Julia Love, who was inhaling and all the hype man

0:14:40.080 --> 0:14:42.400
<v Speaker 3>and all when it comes to Google Io, we thank

0:14:42.440 --> 0:14:44.640
<v Speaker 3>you so much for joining us and setting us up

0:14:44.680 --> 0:14:45.400
<v Speaker 3>into a conversation.

0:14:45.440 --> 0:14:46.560
<v Speaker 5>Now from the investor.

0:14:46.200 --> 0:14:49.680
<v Speaker 3>Perspective, Ioka, Yoshioka is with us Port Radio manager and

0:14:49.720 --> 0:14:54.880
<v Speaker 3>Wealth Enhancement Group, and Ioka, what did you make of

0:14:55.080 --> 0:15:00.160
<v Speaker 3>ultimately Google wanting to basically outshine what open ai I

0:15:00.280 --> 0:15:01.520
<v Speaker 3>put out there yesterday?

0:15:01.880 --> 0:15:02.920
<v Speaker 5>Did they manage to do that?

0:15:03.040 --> 0:15:04.960
<v Speaker 3>Have they managed to convince us that they're not in

0:15:05.000 --> 0:15:07.760
<v Speaker 3>some way behind in this race but actually leaving it?

0:15:09.240 --> 0:15:09.520
<v Speaker 4>Sure?

0:15:09.600 --> 0:15:12.920
<v Speaker 11>I think they did a great job this year showcasing

0:15:13.000 --> 0:15:17.960
<v Speaker 11>their capabilities with artificial intelligence, and really, you know, all

0:15:18.040 --> 0:15:22.320
<v Speaker 11>the different types of ways that they are redefining what

0:15:22.600 --> 0:15:27.200
<v Speaker 11>search really is for all of us, whether it's the

0:15:27.240 --> 0:15:32.800
<v Speaker 11>overview portion within the traditional part of search, or just

0:15:32.840 --> 0:15:35.920
<v Speaker 11>being able to use your phone and the video screen

0:15:36.040 --> 0:15:39.920
<v Speaker 11>in order to do a search music, and all the

0:15:40.080 --> 0:15:44.080
<v Speaker 11>other ways that search is evolving, I think is what

0:15:44.280 --> 0:15:46.520
<v Speaker 11>was on display yesterday.

0:15:48.200 --> 0:15:50.600
<v Speaker 4>Okay, the stakes are pretty high right. You know, I

0:15:50.640 --> 0:15:52.640
<v Speaker 4>was reflecting earlier in the show that the stock is

0:15:52.720 --> 0:15:55.200
<v Speaker 4>up for a second day. But I think back to

0:15:55.280 --> 0:15:57.760
<v Speaker 4>kind of some of the gaffs that the alphabets had

0:15:57.800 --> 0:16:01.600
<v Speaker 4>as well in demoing it's generative are tools, and how

0:16:01.600 --> 0:16:04.880
<v Speaker 4>that's impacted the stock. Do you think they've done enough

0:16:04.880 --> 0:16:07.320
<v Speaker 4>to convince investors for the long term that that, yeah,

0:16:07.360 --> 0:16:11.320
<v Speaker 4>we got this on a consumer facing or business facing AI.

0:16:12.080 --> 0:16:15.760
<v Speaker 11>You know, I think the landscape is rapidly evolving, and

0:16:15.800 --> 0:16:18.320
<v Speaker 11>so I think it's difficult to say whether or not

0:16:18.440 --> 0:16:22.160
<v Speaker 11>this is whether Alphabet or Google is really in that

0:16:22.320 --> 0:16:26.200
<v Speaker 11>poll position. At this point. With AI, it's clearly got

0:16:26.520 --> 0:16:31.400
<v Speaker 11>a much bigger competitive landscape than what was traditional searches

0:16:31.480 --> 0:16:34.280
<v Speaker 11>competitive landscape, and so we'll have to see how this

0:16:34.360 --> 0:16:36.920
<v Speaker 11>evolves over the coming months and years.

0:16:37.840 --> 0:16:40.600
<v Speaker 3>Many feeling on the street that they've regained the AI

0:16:40.640 --> 0:16:44.160
<v Speaker 3>initiative here, many a consumer excited by how much better

0:16:44.240 --> 0:16:47.480
<v Speaker 3>Gmail is going to become, for example, and many excited

0:16:47.520 --> 0:16:50.080
<v Speaker 3>that maybe Google Glass is coming.

0:16:49.880 --> 0:16:53.040
<v Speaker 5>For a reiteration and a modern day take.

0:16:53.120 --> 0:16:57.560
<v Speaker 12>But I'm interested ultimately as to whether this actually adds

0:16:57.600 --> 0:17:00.200
<v Speaker 12>to revenue, adds to future profitability for a business when

0:17:00.200 --> 0:17:04.200
<v Speaker 12>they're undercutting on a price perspective significantly, open a eyes.

0:17:04.000 --> 0:17:09.320
<v Speaker 11>Offering absolutely, and then you know, the cost of all

0:17:09.359 --> 0:17:14.680
<v Speaker 11>of this AI integrating it into all the different programs

0:17:14.680 --> 0:17:17.080
<v Speaker 11>that they will have, all the different offerings that they'll have,

0:17:17.600 --> 0:17:21.320
<v Speaker 11>is still going to continue to increase, and we saw

0:17:21.359 --> 0:17:24.280
<v Speaker 11>that with the most recent quarter and their increase in

0:17:24.359 --> 0:17:27.560
<v Speaker 11>capital spending for A twenty twenty four. So we'll have

0:17:27.600 --> 0:17:31.399
<v Speaker 11>to see how this really shapes up from a financial perspective,

0:17:31.920 --> 0:17:35.160
<v Speaker 11>both on the top line side, from a revenue perspective,

0:17:35.400 --> 0:17:37.600
<v Speaker 11>as well as just the overall impact to earnings.

0:17:39.760 --> 0:17:43.000
<v Speaker 4>Kuren mentioned something really interesting, which is hardware's kind of

0:17:43.040 --> 0:17:47.160
<v Speaker 4>back and Meta and the ray bands is coming up

0:17:47.200 --> 0:17:49.960
<v Speaker 4>every week on the show. If you're an investor in

0:17:49.960 --> 0:17:52.560
<v Speaker 4>a portfolio manager, do you sit your desk in the

0:17:52.560 --> 0:17:54.680
<v Speaker 4>morning and go, you know what, I've got to get

0:17:54.720 --> 0:17:56.600
<v Speaker 4>the research desk on this hardware thing.

0:17:57.000 --> 0:17:59.080
<v Speaker 6>On the hardware use case of AI.

0:18:00.560 --> 0:18:03.439
<v Speaker 11>I'm not sure if I'm cool enough to you know,

0:18:03.480 --> 0:18:06.360
<v Speaker 11>you get all of the hardware, whether it's Google Glass

0:18:06.560 --> 0:18:10.960
<v Speaker 11>or metas Arabians. But you know, I think everybody's looking

0:18:11.040 --> 0:18:16.560
<v Speaker 11>for that next killer sort of technology, whether it's hardware

0:18:17.000 --> 0:18:20.119
<v Speaker 11>or software, and you know, that's the portion that I

0:18:20.119 --> 0:18:23.639
<v Speaker 11>think everybody's still looking for when it comes to generative AI.

0:18:24.840 --> 0:18:28.879
<v Speaker 3>Also, I think many forget that there is a weight

0:18:28.960 --> 0:18:32.000
<v Speaker 3>on Google's shoulders here. They cannot roll out products in

0:18:32.080 --> 0:18:36.000
<v Speaker 3>quite the same fast pace as a more startup version

0:18:36.359 --> 0:18:38.600
<v Speaker 3>of a generative AI bid is at the moment because

0:18:38.760 --> 0:18:40.480
<v Speaker 3>they've got billions of users and.

0:18:40.480 --> 0:18:41.680
<v Speaker 5>Already we've seen them rush.

0:18:41.840 --> 0:18:44.720
<v Speaker 3>Many would say the image generation side of the equation

0:18:44.840 --> 0:18:46.879
<v Speaker 3>and look at the well, the backlash they got for

0:18:46.920 --> 0:18:47.840
<v Speaker 3>that with Gemini.

0:18:48.440 --> 0:18:49.360
<v Speaker 5>How much are you.

0:18:49.359 --> 0:18:51.399
<v Speaker 3>Frustrated though, by the fact that they're talking up a

0:18:51.400 --> 0:18:53.719
<v Speaker 3>lot of things that then sort of leave for our

0:18:53.760 --> 0:18:55.879
<v Speaker 3>imagination as and when they're going to be in our hands.

0:18:57.520 --> 0:18:59.800
<v Speaker 11>You know, it is a level of frustration when it

0:18:59.840 --> 0:19:04.399
<v Speaker 11>comes to the overall communication from Google. I think they

0:19:04.560 --> 0:19:07.560
<v Speaker 11>are in a rush because they're in a position to

0:19:07.720 --> 0:19:11.880
<v Speaker 11>sort of protect what they have and the pole position

0:19:12.000 --> 0:19:14.159
<v Speaker 11>that they're in regarding search.

0:19:14.600 --> 0:19:15.800
<v Speaker 5>So, you know, we'll.

0:19:15.600 --> 0:19:18.760
<v Speaker 11>See if they've kind of been able to refine some

0:19:18.840 --> 0:19:21.720
<v Speaker 11>of that going forward. I think the most recent Google

0:19:21.720 --> 0:19:24.240
<v Speaker 11>Io yesterday really showed that they were at least able

0:19:24.280 --> 0:19:27.360
<v Speaker 11>to refine it from last year, and so we'll see

0:19:27.359 --> 0:19:29.120
<v Speaker 11>if that continues next year.

0:19:30.280 --> 0:19:33.920
<v Speaker 4>Yako Yoshioka, portfolio manager at Welfare Enhancement Group, I think

0:19:33.920 --> 0:19:36.200
<v Speaker 4>you are cool enough come back on the show.

0:19:36.520 --> 0:19:38.399
<v Speaker 6>Bring you Meta ray bands with you. Thank you?

0:19:38.520 --> 0:19:41.480
<v Speaker 4>All right, We'll watching shares of Sony as we had

0:19:41.520 --> 0:19:47.200
<v Speaker 4>to break investor friendly policies coming out overnight, authorization of

0:19:48.400 --> 0:19:51.800
<v Speaker 4>a buyback plan that's been universally around the world. Something

0:19:51.880 --> 0:19:54.800
<v Speaker 4>investors have cheered stock at one point nine percent overnight.

0:19:54.920 --> 0:19:56.080
<v Speaker 6>This is Bloomberg Technology.

0:20:10.640 --> 0:20:12.800
<v Speaker 4>It's time for talking tech and first up, the Yemeni

0:20:12.920 --> 0:20:16.479
<v Speaker 4>government says they're holding back repairs on a key internet

0:20:16.520 --> 0:20:18.840
<v Speaker 4>cable that's been damaged in the Red Sea.

0:20:18.920 --> 0:20:19.640
<v Speaker 6>This comes as the.

0:20:19.600 --> 0:20:23.600
<v Speaker 4>Government conducts an investigation into the cable owner's alleged ties

0:20:23.920 --> 0:20:28.120
<v Speaker 4>to Huthi militia. The cable operators, Telly Yemen, controlled much

0:20:28.160 --> 0:20:31.760
<v Speaker 4>of the damaged cables that connect Europe to Southeast Asia.

0:20:31.800 --> 0:20:35.080
<v Speaker 4>The Yemeni government has notified twenty Global Group members of

0:20:35.119 --> 0:20:38.800
<v Speaker 4>the probe into Tell Yemen's supposed associations with that group.

0:20:38.960 --> 0:20:42.520
<v Speaker 4>Plus Alphabet's YouTube has blocked videos of a Hong Kong

0:20:42.600 --> 0:20:45.439
<v Speaker 4>protest song in the city, just days after a local

0:20:45.480 --> 0:20:48.920
<v Speaker 4>court approved the injunction. Google's video Network said it will

0:20:48.920 --> 0:20:52.399
<v Speaker 4>follow the court's ruling and block thirty two versions of

0:20:52.400 --> 0:20:56.160
<v Speaker 4>the video titled Glory to Hong Kong. While existing laws

0:20:56.160 --> 0:20:59.480
<v Speaker 4>already punish people for playing the song on charges of sedition,

0:21:00.040 --> 0:21:03.320
<v Speaker 4>the Chinese government has sought to erase it from all platforms,

0:21:03.400 --> 0:21:06.359
<v Speaker 4>and PC maker russree Pie says it's considering an IPO

0:21:06.480 --> 0:21:09.320
<v Speaker 4>in London, in what would be the first sizable.

0:21:08.840 --> 0:21:10.560
<v Speaker 6>Listing for the city since February.

0:21:10.560 --> 0:21:13.520
<v Speaker 4>The company says it intends to publish a registration dock

0:21:13.560 --> 0:21:16.199
<v Speaker 4>with the London Stock Exchange, but did not disclose how

0:21:16.240 --> 0:21:17.680
<v Speaker 4>much it plans to raise CARROC.

0:21:18.320 --> 0:21:21.880
<v Speaker 3>Meanwhile, let's just shift our attention towards well a key

0:21:21.920 --> 0:21:24.800
<v Speaker 3>founder Andreill founder Palmer Lucky about how his AI and

0:21:24.840 --> 0:21:28.960
<v Speaker 3>autonomous systems are actually changing on the battlefield. We've been

0:21:29.000 --> 0:21:30.639
<v Speaker 3>speaking to him, not only here on the show just

0:21:30.720 --> 0:21:34.280
<v Speaker 3>last week, but Bloomberg Original's host Emily Chang caught up

0:21:34.280 --> 0:21:37.240
<v Speaker 3>with him to discuss his mission to tackle legacy defense

0:21:37.240 --> 0:21:40.160
<v Speaker 3>contractors and the challenges of scaling a defense teching in Nicorn.

0:21:40.359 --> 0:21:41.240
<v Speaker 5>Just take a listen.

0:21:44.520 --> 0:21:46.520
<v Speaker 2>Right now. He Androl's very much in a high growth stage.

0:21:46.520 --> 0:21:47.840
<v Speaker 2>We've done a lot of things that I'm very, very

0:21:47.880 --> 0:21:50.760
<v Speaker 2>proud of but I'm very aware of the fact that

0:21:50.800 --> 0:21:55.000
<v Speaker 2>we are not a profitable business. We are living on

0:21:55.160 --> 0:21:58.760
<v Speaker 2>borrowed time, and so it's hard for me to come

0:21:58.760 --> 0:22:00.840
<v Speaker 2>and feel like I've made it when I know that

0:22:01.440 --> 0:22:04.520
<v Speaker 2>anyone can raise money from vcs, buy a really big

0:22:04.560 --> 0:22:07.800
<v Speaker 2>office and feel a full of people. The question is

0:22:07.880 --> 0:22:10.200
<v Speaker 2>are those people building the right things and will those

0:22:10.280 --> 0:22:11.040
<v Speaker 2>things pay off?

0:22:12.560 --> 0:22:14.399
<v Speaker 3>You can catch more of that conversation on the circuit

0:22:14.400 --> 0:22:16.800
<v Speaker 3>with them any chang tonight six pm ET on Bloomberg

0:22:16.840 --> 0:22:19.440
<v Speaker 3>Television or go stream it at eight pm.

0:22:19.160 --> 0:22:21.120
<v Speaker 5>On Bloomberg Originals from New York.

0:22:21.119 --> 0:22:27.159
<v Speaker 3>From San Francisco, It's the Bloomberg Technology.

0:22:33.320 --> 0:22:36.520
<v Speaker 4>Welcome back to Bloomberg Technology. Ed love Low in San Francisco.

0:22:36.080 --> 0:22:36.879
<v Speaker 5>And I Hied in New York.

0:22:36.960 --> 0:22:38.640
<v Speaker 3>Let's get you a quick check on these markets, because

0:22:38.680 --> 0:22:41.000
<v Speaker 3>we are at record highs votes and that is because

0:22:41.160 --> 0:22:44.040
<v Speaker 3>the macro picture is one of inflation, somewhat calling the

0:22:44.040 --> 0:22:46.280
<v Speaker 3>CPI print was what the market wanted to see and

0:22:46.320 --> 0:22:48.560
<v Speaker 3>we're likely to see therefore record highs. The close for

0:22:48.600 --> 0:22:50.440
<v Speaker 3>at the moment, then ask that one hundred the NASGAC

0:22:50.480 --> 0:22:53.440
<v Speaker 3>and indeed the S and P five hundred global benchmarks

0:22:53.440 --> 0:22:55.960
<v Speaker 3>at record highs two the sci Or World Country World

0:22:55.960 --> 0:22:57.640
<v Speaker 3>Index up nine tenths.

0:22:57.320 --> 0:22:58.760
<v Speaker 5>Of a percent and a new record.

0:22:58.880 --> 0:23:01.160
<v Speaker 3>And I'm looking at bitcoin, all risk assets doing well

0:23:01.200 --> 0:23:03.920
<v Speaker 3>in the idea that the Fed might actually cut this year,

0:23:04.119 --> 0:23:06.040
<v Speaker 3>that being factored back in by the market, and we're

0:23:06.119 --> 0:23:08.040
<v Speaker 3>up more than five percent on bitcoin as the dollar

0:23:08.040 --> 0:23:08.440
<v Speaker 3>goes lower.

0:23:08.440 --> 0:23:10.040
<v Speaker 5>And move on to some of the individual movers.

0:23:10.280 --> 0:23:12.520
<v Speaker 3>Well, A key player that's helping the benchmarks from their

0:23:12.560 --> 0:23:15.040
<v Speaker 3>key points perspective is in video. We're up more than

0:23:15.080 --> 0:23:18.040
<v Speaker 3>three percent. Helps when you're worth more than two three

0:23:18.080 --> 0:23:20.640
<v Speaker 3>trillion dollars. But it's also notable that we're actually gaking

0:23:20.680 --> 0:23:22.359
<v Speaker 3>some thirty F filings this morning and a lot of

0:23:22.400 --> 0:23:25.879
<v Speaker 3>more people actually upping their stakes in in video. Remember

0:23:25.880 --> 0:23:28.040
<v Speaker 3>their earnings come out next week Monday. Dot Com you

0:23:28.080 --> 0:23:29.960
<v Speaker 3>Sean and on this ed on the call. It's a

0:23:29.960 --> 0:23:32.040
<v Speaker 3>small company, but it's a big move. So we used

0:23:32.040 --> 0:23:34.120
<v Speaker 3>to highlight up more than twenty percent. This is about

0:23:34.160 --> 0:23:37.720
<v Speaker 3>building APIs for work projects, in particular software that's doing well.

0:23:37.760 --> 0:23:40.000
<v Speaker 3>It would seem from a demand perspective at the moment

0:23:40.240 --> 0:23:42.359
<v Speaker 3>and Telecometalia.

0:23:41.960 --> 0:23:44.600
<v Speaker 5>Maybe just maybe we're going to be bought.

0:23:44.359 --> 0:23:47.200
<v Speaker 3>By KKR they're putting in their twenty two billion euro bid.

0:23:47.280 --> 0:23:49.080
<v Speaker 3>They're trying to get the EU on board with this.

0:23:49.320 --> 0:23:51.439
<v Speaker 3>This is all about sort of the phone network ultimate

0:23:51.440 --> 0:23:54.600
<v Speaker 3>of Telecometalia. So at the close, we're up more than

0:23:54.640 --> 0:23:56.879
<v Speaker 3>two percent over there in Europe for this particular player.

0:23:56.880 --> 0:23:57.560
<v Speaker 5>But what are you looking at?

0:23:57.680 --> 0:24:01.679
<v Speaker 4>Ed A big story that broke pretty late yesterday, and

0:24:01.720 --> 0:24:05.359
<v Speaker 4>that is open ai chief scientist and co founder Ilia

0:24:05.440 --> 0:24:10.119
<v Speaker 4>Sutskiva is leaving the artificial intelligence company, a departure that

0:24:10.160 --> 0:24:13.280
<v Speaker 4>basically ends months of speculation in Silicon Valley about the

0:24:13.280 --> 0:24:16.399
<v Speaker 4>future of who is a top AI researcher, someone that

0:24:16.480 --> 0:24:19.840
<v Speaker 4>played a key role in the brief ouster of Sam

0:24:19.840 --> 0:24:25.720
<v Speaker 4>Outman last year joining us More is Bloomberg, Serene Gafari Scherene. Okay,

0:24:25.720 --> 0:24:28.639
<v Speaker 4>this is complicated because Ilia was at the center of

0:24:28.680 --> 0:24:31.040
<v Speaker 4>that mad weekend that you and I worked for forty

0:24:31.080 --> 0:24:32.720
<v Speaker 4>eight hours straight to work out what.

0:24:32.680 --> 0:24:33.200
<v Speaker 6>Was going on.

0:24:33.960 --> 0:24:36.640
<v Speaker 4>But he's one of the original founder's, former board member

0:24:36.680 --> 0:24:39.600
<v Speaker 4>of open ai, and he's saying I'm leaving the company.

0:24:40.160 --> 0:24:44.120
<v Speaker 4>I guess do we know why? Specifically he's leaving open ai.

0:24:46.200 --> 0:24:50.520
<v Speaker 13>So he didn't say much about exactly why he's leaving.

0:24:50.640 --> 0:24:54.359
<v Speaker 13>But you know, we know that basically since the brief

0:24:54.440 --> 0:24:57.879
<v Speaker 13>ouster of Sam Maltman, Ilia Satskuber, who was once you know,

0:24:58.000 --> 0:24:58.640
<v Speaker 13>a very.

0:25:00.040 --> 0:25:02.360
<v Speaker 14>Common figure in the office, has not been.

0:25:02.200 --> 0:25:03.080
<v Speaker 15>Seen as much.

0:25:03.480 --> 0:25:05.600
<v Speaker 14>There is a lot of speculation, rumors about well, what's

0:25:05.640 --> 0:25:06.679
<v Speaker 14>going to happen with Ilia?

0:25:07.720 --> 0:25:08.840
<v Speaker 15>Is he going to leave the company?

0:25:09.400 --> 0:25:12.240
<v Speaker 14>And so, you know, internally, I think it wasn't so

0:25:12.320 --> 0:25:15.720
<v Speaker 14>much of a big surprise to many people that eventually

0:25:15.760 --> 0:25:18.240
<v Speaker 14>Ilia would leave. Now what he's going to do next,

0:25:18.280 --> 0:25:20.080
<v Speaker 14>he said, going to he has a new project and

0:25:20.119 --> 0:25:21.639
<v Speaker 14>he'll share details in due time.

0:25:21.760 --> 0:25:23.440
<v Speaker 15>So we're all waiting to see.

0:25:24.320 --> 0:25:29.600
<v Speaker 3>Ultimately this comes down what was thought was a difference

0:25:29.640 --> 0:25:34.680
<v Speaker 3>in opinion of the ultimate way you build generative artificial

0:25:34.680 --> 0:25:39.480
<v Speaker 3>intelligence and artificial general intelligence for the good of humanity.

0:25:39.840 --> 0:25:44.000
<v Speaker 3>Is that what's underlying here a philosophical philosophical difference, or

0:25:44.040 --> 0:25:46.000
<v Speaker 3>ultimately that there's other things that need to be built

0:25:46.040 --> 0:25:49.000
<v Speaker 3>at this moment of great exuberance around the technology.

0:25:49.520 --> 0:25:50.919
<v Speaker 14>You know, I think it's really hard to say. What

0:25:50.960 --> 0:25:53.280
<v Speaker 14>we do know is that Ilia Setskiv is someone who

0:25:53.400 --> 0:25:56.159
<v Speaker 14>was working at these issues kind of at the intersection

0:25:56.400 --> 0:25:59.399
<v Speaker 14>right of ethics and AI. He co led the super

0:25:59.440 --> 0:26:01.720
<v Speaker 14>Alignment Team is what they call it there, which is

0:26:01.760 --> 0:26:04.160
<v Speaker 14>all about how to make sure that AI is aligned

0:26:04.200 --> 0:26:07.040
<v Speaker 14>with human values. So you know, of course, this is

0:26:07.040 --> 0:26:10.600
<v Speaker 14>someone who's interested in the social implications of the technology

0:26:10.640 --> 0:26:14.000
<v Speaker 14>that he's building. Now, whether ultimately his decision to leave

0:26:14.080 --> 0:26:16.200
<v Speaker 14>is just because he'd rather do something else or because

0:26:16.200 --> 0:26:20.000
<v Speaker 14>he may have some deeper conflicts that are unsettled with

0:26:20.040 --> 0:26:22.359
<v Speaker 14>the company, I think is still very much a big question.

0:26:23.040 --> 0:26:27.200
<v Speaker 3>And also others leaving in his wake will have more

0:26:27.240 --> 0:26:29.879
<v Speaker 3>to report out throughout the day. I'm sure Blueberg's Sharan

0:26:29.960 --> 0:26:32.520
<v Speaker 3>KAfari thank you for breaking it down on that key

0:26:33.440 --> 0:26:35.679
<v Speaker 3>departure coming from open AI. Now, let's just stick with

0:26:35.760 --> 0:26:39.920
<v Speaker 3>artificial intelligence and turn to the growing legal backlash against

0:26:40.040 --> 0:26:43.439
<v Speaker 3>companies as they experience rapid growth. Now, also how you

0:26:43.480 --> 0:26:47.000
<v Speaker 3>can harness generator AI in the legal sphere too. We

0:26:47.080 --> 0:26:49.360
<v Speaker 3>can have both of these conversations at the same time

0:26:49.400 --> 0:26:52.479
<v Speaker 3>with Gila Hyatt, CTO, co founder of Darrowner. It's an

0:26:52.480 --> 0:26:55.200
<v Speaker 3>aipower legal intelligence platform back by y Combinator.

0:26:55.600 --> 0:26:58.000
<v Speaker 5>Your platform is used by some of the top US

0:26:58.080 --> 0:27:00.639
<v Speaker 5>law firms. It connects with a three thousand gators with

0:27:00.920 --> 0:27:01.720
<v Speaker 5>new cases.

0:27:02.000 --> 0:27:05.119
<v Speaker 3>Basically, you're facilitating over ten million dollars in litigation HeLa

0:27:05.160 --> 0:27:07.840
<v Speaker 3>as if lawyers weren't busy enough, you're finding ways in

0:27:07.880 --> 0:27:12.679
<v Speaker 3>which there can be well group lawsuits. Broad interesting at

0:27:12.680 --> 0:27:15.320
<v Speaker 3>the moment that we've just seen one versus the US

0:27:15.400 --> 0:27:18.480
<v Speaker 3>government on the behalf of TikTok happening great.

0:27:19.080 --> 0:27:21.000
<v Speaker 1>First of all, it's great to be here, and I

0:27:21.119 --> 0:27:24.760
<v Speaker 1>also want to say about justice intelligence in general. So

0:27:25.600 --> 0:27:29.760
<v Speaker 1>the question regarding where their lawyers are busy enough. Our

0:27:29.880 --> 0:27:34.560
<v Speaker 1>mission is to identify impactful cases that have a lot

0:27:34.600 --> 0:27:40.479
<v Speaker 1>of both social and an legal impact around issues that

0:27:40.640 --> 0:27:47.360
<v Speaker 1>are basically harming consumers, businesses, and employees. We're mostly focused

0:27:47.400 --> 0:27:53.080
<v Speaker 1>around privacy issues, consumer protection, climate, environmental protection, which is

0:27:53.119 --> 0:27:57.000
<v Speaker 1>super super important, and we're harnessing AI to do.

0:27:56.920 --> 0:27:59.359
<v Speaker 15>So to identify socially impactful.

0:28:01.080 --> 0:28:03.639
<v Speaker 6>Data. How does the AI technology work?

0:28:05.040 --> 0:28:08.320
<v Speaker 1>Yeah, So we are in a very interesting intersection between

0:28:09.160 --> 0:28:12.200
<v Speaker 1>looking at legal data and event data, which is pretty

0:28:12.240 --> 0:28:15.400
<v Speaker 1>much anything that can happen on social media or events

0:28:15.440 --> 0:28:19.840
<v Speaker 1>happening online. And the way we do so is we

0:28:19.880 --> 0:28:23.520
<v Speaker 1>look at tremendous amounts of legal data, which are cases,

0:28:23.760 --> 0:28:28.440
<v Speaker 1>case law, regulations, new laws are coming in and understanding

0:28:28.720 --> 0:28:31.199
<v Speaker 1>what are the fact patterns that the case law is

0:28:31.240 --> 0:28:32.280
<v Speaker 1>talking about.

0:28:31.960 --> 0:28:35.800
<v Speaker 15>And how those events take action on everyday life.

0:28:36.080 --> 0:28:41.360
<v Speaker 4>Is this underpinned by specific LLM or someone else's AI

0:28:41.400 --> 0:28:43.120
<v Speaker 4>model or is it something you built yourself.

0:28:44.240 --> 0:28:47.920
<v Speaker 1>Yeah, So the process is heavily infused in LMS, which

0:28:47.960 --> 0:28:50.280
<v Speaker 1>is agnostic to what kind of LLMS that we're using,

0:28:50.960 --> 0:28:53.600
<v Speaker 1>because it's a multi process. It's a multi step process

0:28:53.720 --> 0:28:58.040
<v Speaker 1>which takes into consideration, ingesting the data, understanding what it is,

0:28:58.360 --> 0:29:01.720
<v Speaker 1>and basically extracting the type of legal story or the

0:29:01.800 --> 0:29:05.120
<v Speaker 1>legal phenomena that we're taking into action. So a lot

0:29:05.160 --> 0:29:08.920
<v Speaker 1>of people assume that legalies is basically a different dialect

0:29:09.000 --> 0:29:10.600
<v Speaker 1>of English, and they're correct to do so.

0:29:10.920 --> 0:29:13.240
<v Speaker 15>And this is the kind of intersection that we're looking at.

0:29:13.200 --> 0:29:13.720
<v Speaker 1>Where it's.

0:29:15.120 --> 0:29:18.400
<v Speaker 4>Yeah, sorry, I mean to interrupt, Guila. I I suffered

0:29:18.400 --> 0:29:22.920
<v Speaker 4>three three years of law school and legal went in

0:29:22.960 --> 0:29:23.880
<v Speaker 4>one air and out the other.

0:29:23.920 --> 0:29:25.920
<v Speaker 6>Please continue your answeert Yeah. Yeah.

0:29:25.960 --> 0:29:28.440
<v Speaker 1>And and as a non lawyer myself, just as a

0:29:28.480 --> 0:29:32.160
<v Speaker 1>tech person, I am fascinated by by what kind of

0:29:32.160 --> 0:29:35.640
<v Speaker 1>how can we align this type of language and make

0:29:35.680 --> 0:29:39.800
<v Speaker 1>it usable for for consumers and for the people where

0:29:40.360 --> 0:29:42.720
<v Speaker 1>often most of the legal violations that happened to them,

0:29:42.760 --> 0:29:45.080
<v Speaker 1>they can happen pretty much in every kind of type

0:29:45.080 --> 0:29:47.520
<v Speaker 1>of service or or or product or business that you're

0:29:47.520 --> 0:29:51.440
<v Speaker 1>interacting with, And there is a constant fight over our attention.

0:29:51.840 --> 0:29:54.320
<v Speaker 15>Yeah, and this is and and this is what we're

0:29:54.320 --> 0:29:55.680
<v Speaker 15>trying and trying to.

0:29:55.640 --> 0:29:58.480
<v Speaker 1>Build where we were consumers don't have to be worried

0:29:58.480 --> 0:30:02.320
<v Speaker 1>about their rights being vito later or even the quality

0:30:02.360 --> 0:30:05.520
<v Speaker 1>of air around them is deteriorating because there's not enough

0:30:05.560 --> 0:30:09.000
<v Speaker 1>focus and not enough there's not enough power to the

0:30:09.040 --> 0:30:10.760
<v Speaker 1>consumer to understand.

0:30:10.320 --> 0:30:12.240
<v Speaker 15>And to ingest that amount of data.

0:30:12.280 --> 0:30:16.360
<v Speaker 1>And on the other side, lawyers, the lawyers are only

0:30:16.360 --> 0:30:19.560
<v Speaker 1>now starting to develop the intelligence gathering skills that are

0:30:19.560 --> 0:30:22.640
<v Speaker 1>required in order trying to stand the full picture supported

0:30:22.680 --> 0:30:25.840
<v Speaker 1>by facts and generally create more impactful cases.

0:30:26.000 --> 0:30:30.000
<v Speaker 3>Yes, we've already heard some of the issues of hallucination

0:30:30.160 --> 0:30:34.000
<v Speaker 3>when it comes to looking back at previous contracts, previous

0:30:34.000 --> 0:30:37.520
<v Speaker 3>cases via the use of generative AI and sometimes and

0:30:37.640 --> 0:30:40.400
<v Speaker 3>making them up. But Gila, I'm also interested that I

0:30:40.440 --> 0:30:42.520
<v Speaker 3>can't imagine there's too many lawyers out there, too many

0:30:42.520 --> 0:30:45.320
<v Speaker 3>companies out there upset that their contracts are.

0:30:45.200 --> 0:30:46.400
<v Speaker 5>Being used as training data.

0:30:46.720 --> 0:30:48.720
<v Speaker 3>There's an awful lot of artists out there right now,

0:30:48.800 --> 0:30:50.680
<v Speaker 3>an awful lot of creatives out there right now who

0:30:50.760 --> 0:30:55.280
<v Speaker 3>worried about their own creations being used in large language models.

0:30:55.360 --> 0:30:57.520
<v Speaker 3>How much you're seeing that as an area you're waiting into.

0:30:58.240 --> 0:31:02.920
<v Speaker 1>So I think the discourse around AI and the concept

0:31:02.920 --> 0:31:06.680
<v Speaker 1>of originality and the owners of the content is a

0:31:06.680 --> 0:31:10.560
<v Speaker 1>hot topic and we should discuss it from multiple angles

0:31:10.600 --> 0:31:14.440
<v Speaker 1>in a way that we want to keep encouraging originality

0:31:14.480 --> 0:31:17.440
<v Speaker 1>and humanity and content creation around that so people will

0:31:17.520 --> 0:31:23.040
<v Speaker 1>keep innovating rather than just replicating replicating content.

0:31:22.760 --> 0:31:24.400
<v Speaker 15>That is doesn't have much impact.

0:31:25.200 --> 0:31:29.080
<v Speaker 1>I think that also from from the legal perspective, a

0:31:29.080 --> 0:31:35.720
<v Speaker 1>lot of high margin task work, just like contracts, will

0:31:35.760 --> 0:31:39.400
<v Speaker 1>be scarce and the focus will have to shift to

0:31:39.520 --> 0:31:42.680
<v Speaker 1>different kinds of tasks that require the core human impact

0:31:42.720 --> 0:31:44.000
<v Speaker 1>and the core human.

0:31:44.120 --> 0:31:46.400
<v Speaker 15>Seed that is required to create such a task.

0:31:46.920 --> 0:31:50.120
<v Speaker 1>So I think in the next in upcoming years, we're

0:31:50.120 --> 0:31:53.280
<v Speaker 1>going to see maybe different ways to compensate content creators

0:31:53.320 --> 0:31:56.960
<v Speaker 1>and having a more more clear and transparent way of

0:31:57.000 --> 0:32:00.360
<v Speaker 1>how this data is going to be used in terms

0:32:00.400 --> 0:32:04.080
<v Speaker 1>of hallucination. How we solved it at Darrow is that

0:32:04.320 --> 0:32:07.720
<v Speaker 1>first of all, we are validating we're being the content

0:32:07.760 --> 0:32:10.080
<v Speaker 1>that we're creating, because we are very, very focused on

0:32:10.200 --> 0:32:15.280
<v Speaker 1>creating a trustworthy insight based on our sources, and also

0:32:15.320 --> 0:32:18.400
<v Speaker 1>we are also providing the sources for our clients to

0:32:18.480 --> 0:32:21.080
<v Speaker 1>understand how we got to this decision. So we're not

0:32:21.120 --> 0:32:25.160
<v Speaker 1>talking for place decision ranking at its core rather than

0:32:25.200 --> 0:32:29.880
<v Speaker 1>empower empower our client to understand how we got to

0:32:29.960 --> 0:32:31.480
<v Speaker 1>this conclusion.

0:32:32.520 --> 0:32:35.560
<v Speaker 4>Heila Hiatt, CEO and co founder Darrow and Darrow named

0:32:35.600 --> 0:32:40.000
<v Speaker 4>after Clarence Darrow, the nineteenth century lawyer from the Midwest

0:32:40.040 --> 0:32:43.360
<v Speaker 4>who represented trade unions in all those whole profile cases.

0:32:43.400 --> 0:32:44.000
<v Speaker 6>Thank you so much.

0:32:44.000 --> 0:32:45.800
<v Speaker 4>Now coming up, we're going to be joined by the

0:32:45.800 --> 0:32:47.880
<v Speaker 4>CEO of Chime talking a little bit about fintech and

0:32:47.880 --> 0:32:49.880
<v Speaker 4>discuss the company's new offering.

0:32:49.960 --> 0:32:51.440
<v Speaker 6>More details than that next carot.

0:32:51.840 --> 0:32:54.000
<v Speaker 3>Yeah. Meanwhile, I just want to shine a light on

0:32:54.040 --> 0:32:58.760
<v Speaker 3>some Lucashaw reporting ed because Netflix apparently going after some

0:32:58.880 --> 0:33:01.400
<v Speaker 3>key NFL game around the Christmas time.

0:33:01.480 --> 0:33:05.680
<v Speaker 5>Once again there's foray into live events. This time live

0:33:05.760 --> 0:33:07.480
<v Speaker 5>sports is an interesting take.

0:33:07.520 --> 0:33:09.720
<v Speaker 3>We're just down five ten percent interestingly on Netflix on

0:33:09.720 --> 0:33:12.040
<v Speaker 3>the day, but they're likely to air two NFL games

0:33:12.080 --> 0:33:15.320
<v Speaker 3>this Christmas Day and its largest push into live events.

0:33:15.440 --> 0:33:28.520
<v Speaker 16>That's something of their technology.

0:33:31.160 --> 0:33:35.040
<v Speaker 4>Chime the fintech, known for its fee free banking services,

0:33:35.120 --> 0:33:38.200
<v Speaker 4>is now offering consumers the option of accessing as much

0:33:38.240 --> 0:33:41.320
<v Speaker 4>as five hundred dollars of their paycheck before they arrive.

0:33:41.520 --> 0:33:43.520
<v Speaker 4>Let's get more on this with Chime CEO Chris Britt,

0:33:43.520 --> 0:33:46.000
<v Speaker 4>who joins me here in San Francisco. So it's interesting

0:33:46.040 --> 0:33:49.400
<v Speaker 4>because you're offering the option to do this for free

0:33:50.120 --> 0:33:52.880
<v Speaker 4>or if you want it instantly, two dollars, and you'd

0:33:52.920 --> 0:33:56.680
<v Speaker 4>imagine that those that take up the offer would veer

0:33:56.760 --> 0:33:57.760
<v Speaker 4>to the free side.

0:33:58.640 --> 0:34:00.240
<v Speaker 6>Maybe not. What's in it for you, guys?

0:34:01.120 --> 0:34:05.640
<v Speaker 17>Well, Chime is all about helping everyday people unlock financial progress.

0:34:05.640 --> 0:34:07.520
<v Speaker 8>We do that with a fee free checking.

0:34:07.240 --> 0:34:09.960
<v Speaker 17>Account and a host of services that help people with

0:34:10.000 --> 0:34:13.120
<v Speaker 17>short term liquidity and credit building. And what's in it

0:34:13.120 --> 0:34:16.160
<v Speaker 17>for us with this new service called my pay is

0:34:16.160 --> 0:34:20.600
<v Speaker 17>that consumers would sign up for Chime get direct deposit

0:34:20.800 --> 0:34:22.120
<v Speaker 17>and then, you know, if you think about the way

0:34:22.480 --> 0:34:24.759
<v Speaker 17>payroll works in America, most people will get paid every

0:34:24.760 --> 0:34:28.840
<v Speaker 17>two weeks, and so with this service, now any point

0:34:28.920 --> 0:34:32.040
<v Speaker 17>along that journey towards your next paycheck, you can access

0:34:32.520 --> 0:34:34.640
<v Speaker 17>a portion of your paycheck up to five hundred dollars.

0:34:34.719 --> 0:34:36.399
<v Speaker 17>So what's in it for us is that we really

0:34:36.400 --> 0:34:39.279
<v Speaker 17>want to get people to sign up and use Chime

0:34:39.320 --> 0:34:41.600
<v Speaker 17>as their primary bank account. This is just another reason

0:34:41.640 --> 0:34:42.440
<v Speaker 17>why people would.

0:34:42.239 --> 0:34:46.120
<v Speaker 4>Bring them into a broader sort of ecosystem. Things are

0:34:46.239 --> 0:34:50.000
<v Speaker 4>difficult right now to read on the consumer. So if

0:34:50.080 --> 0:34:52.719
<v Speaker 4>you think about those that might be inclined to take

0:34:53.200 --> 0:34:56.759
<v Speaker 4>advantage of my pay they may also be under financial duress. Right,

0:34:57.080 --> 0:34:59.239
<v Speaker 4>So is there a technology in place that you guys

0:34:59.320 --> 0:35:02.200
<v Speaker 4>use for risk as esment for example, if somebody's eligible

0:35:02.560 --> 0:35:03.040
<v Speaker 4>to do.

0:35:02.920 --> 0:35:05.920
<v Speaker 17>This, oh for sure, and I couldn't agree more. You know,

0:35:05.960 --> 0:35:09.520
<v Speaker 17>it's something like sixty percent of Americans live paycheck to paycheck,

0:35:09.600 --> 0:35:12.360
<v Speaker 17>so that doesn't mean everyone's under financial duress. But usually

0:35:12.400 --> 0:35:16.239
<v Speaker 17>around the next time that your paycheck is coming to

0:35:16.320 --> 0:35:18.879
<v Speaker 17>your account, you probably have a low balance situation. That's

0:35:18.880 --> 0:35:21.080
<v Speaker 17>where banks oftentimes take advantage of consumers.

0:35:21.160 --> 0:35:24.200
<v Speaker 8>So for us, giving people access to.

0:35:25.719 --> 0:35:28.319
<v Speaker 17>Their payroll at an earlier clip is just a huge

0:35:28.400 --> 0:35:31.800
<v Speaker 17>unlock for them and is extremely helpful with them getting,

0:35:31.880 --> 0:35:33.600
<v Speaker 17>you know, getting through the next paycheck.

0:35:34.400 --> 0:35:36.719
<v Speaker 3>It's a new area of banking services that has been

0:35:36.760 --> 0:35:40.759
<v Speaker 3>popular elsewhere. Chris And has sort of fallen into a

0:35:40.840 --> 0:35:45.200
<v Speaker 3>legal gray area from a consumer protection perspective. How are

0:35:45.280 --> 0:35:48.360
<v Speaker 3>you working with consumer rights screups, how are you working

0:35:48.360 --> 0:35:49.000
<v Speaker 3>with government to.

0:35:49.000 --> 0:35:50.840
<v Speaker 5>Ensure that you are above board at all times?

0:35:52.239 --> 0:35:53.120
<v Speaker 8>That's a great point.

0:35:53.200 --> 0:35:56.120
<v Speaker 17>Actually, this this whole category, it's referred to as Earned

0:35:56.160 --> 0:35:58.279
<v Speaker 17>Wage access or EWA.

0:35:59.120 --> 0:36:00.000
<v Speaker 8>It's an emerging area.

0:36:00.000 --> 0:36:01.879
<v Speaker 17>There's a number of companies that have popped up, and

0:36:02.000 --> 0:36:05.480
<v Speaker 17>the regulation in the area is still still sort of

0:36:05.480 --> 0:36:10.000
<v Speaker 17>a work in progress. So we are sort of monitoring

0:36:10.000 --> 0:36:13.279
<v Speaker 17>that closely. We are in regular contact with regulators. But

0:36:13.280 --> 0:36:16.440
<v Speaker 17>we've actually launched this product not as an EWA product,

0:36:16.440 --> 0:36:18.319
<v Speaker 17>but actually as a credit product, and we've done it

0:36:18.320 --> 0:36:22.799
<v Speaker 17>in coordination with our bank partners. So the legal construct

0:36:22.840 --> 0:36:26.640
<v Speaker 17>for a credit product is fully articulated, and we've been

0:36:26.640 --> 0:36:29.160
<v Speaker 17>able to design a product that complies with all the

0:36:29.239 --> 0:36:31.080
<v Speaker 17>rules and regulations the same way that we do with

0:36:31.440 --> 0:36:32.480
<v Speaker 17>all of our products at Chime.

0:36:33.040 --> 0:36:35.360
<v Speaker 3>Something else that is still work in progress is potentially

0:36:35.400 --> 0:36:37.040
<v Speaker 3>you becoming a public company.

0:36:37.239 --> 0:36:37.520
<v Speaker 15>Now.

0:36:37.680 --> 0:36:39.319
<v Speaker 3>You said back into some of the company was is

0:36:39.400 --> 0:36:42.359
<v Speaker 3>IPO ready as it can be? And you're assessing how

0:36:42.360 --> 0:36:44.480
<v Speaker 3>the markets look for the first half of twenty twenty four,

0:36:44.560 --> 0:36:46.120
<v Speaker 3>So Chris, how do they look?

0:36:46.320 --> 0:36:47.080
<v Speaker 5>Are you coming soon?

0:36:48.480 --> 0:36:50.960
<v Speaker 17>The I think the market's actually looked pretty good, and

0:36:51.320 --> 0:36:52.400
<v Speaker 17>the business looks pretty good.

0:36:52.440 --> 0:36:52.640
<v Speaker 9>You know.

0:36:52.680 --> 0:36:55.839
<v Speaker 17>We ended Q four of last year is the number

0:36:55.840 --> 0:36:59.799
<v Speaker 17>one most downloaded banking app in America. We have over

0:37:00.320 --> 0:37:05.560
<v Speaker 17>million monthly transacting actives in the account and using our

0:37:06.360 --> 0:37:09.960
<v Speaker 17>Chime accounts, and the majority of our members are using

0:37:10.040 --> 0:37:14.440
<v Speaker 17>us as a primary direct deposit and every day spending cards.

0:37:14.440 --> 0:37:17.080
<v Speaker 17>So the business is performing extremely well. We actually had

0:37:17.120 --> 0:37:21.160
<v Speaker 17>a profitable Q one. We don't have IPO plans to

0:37:21.320 --> 0:37:24.680
<v Speaker 17>announce in this meeting today, but I would say that

0:37:25.280 --> 0:37:27.520
<v Speaker 17>an IPO is not too far out on the horizon,

0:37:27.600 --> 0:37:30.239
<v Speaker 17>probably not twenty four, but definitely something that we're thinking

0:37:30.239 --> 0:37:30.680
<v Speaker 17>a lot about.

0:37:30.880 --> 0:37:32.759
<v Speaker 6>So Chime's been really interesting to me.

0:37:32.920 --> 0:37:35.160
<v Speaker 4>Some of your team know that they're here with us,

0:37:35.200 --> 0:37:38.080
<v Speaker 4>but you had this twenty five billion dollar valuation in

0:37:38.120 --> 0:37:40.759
<v Speaker 4>twenty twenty one, and the valuations come down. That's not

0:37:41.040 --> 0:37:45.160
<v Speaker 4>unique for your story. Are you kind of happy about that?

0:37:45.200 --> 0:37:48.640
<v Speaker 4>We've seen down rounds or low evaluations set you up

0:37:48.680 --> 0:37:52.400
<v Speaker 4>quite well for whatever future you decide well.

0:37:52.520 --> 0:37:54.920
<v Speaker 17>Valuations are always a moment in time, right, and they

0:37:55.000 --> 0:37:57.560
<v Speaker 17>always fluctuate to some extent. We haven't done a new

0:37:57.600 --> 0:38:00.839
<v Speaker 17>financing since twenty twenty one, so it's clear, you know.

0:38:00.840 --> 0:38:03.399
<v Speaker 6>What the market reported valuation to be fat right.

0:38:03.920 --> 0:38:06.520
<v Speaker 8>You know, we don't think too much about that.

0:38:06.600 --> 0:38:09.640
<v Speaker 17>We're sort of heads down, just focused on executing and

0:38:09.680 --> 0:38:12.400
<v Speaker 17>not thinking too much about a specific valuation. But I

0:38:12.400 --> 0:38:15.400
<v Speaker 17>do think that the overall reset in the fintech category

0:38:15.440 --> 0:38:16.719
<v Speaker 17>has been a great opportunity for us.

0:38:16.719 --> 0:38:18.480
<v Speaker 8>Well, some companies are trying to.

0:38:18.480 --> 0:38:20.480
<v Speaker 17>You know, figure out where they might land or you know,

0:38:20.719 --> 0:38:23.560
<v Speaker 17>merger opportunities or needing to raise money.

0:38:23.560 --> 0:38:24.920
<v Speaker 8>We're extremely well capitalized.

0:38:24.920 --> 0:38:26.520
<v Speaker 17>We have close to a billion dollars of cash on

0:38:26.560 --> 0:38:28.960
<v Speaker 17>the balance sheet, so we've been able to work not

0:38:29.040 --> 0:38:30.920
<v Speaker 17>over but close to a billion dollars of cash.

0:38:31.239 --> 0:38:32.640
<v Speaker 8>So we've been able to stay.

0:38:32.400 --> 0:38:36.719
<v Speaker 17>Aggressive and grow market share in a period of you know,

0:38:37.000 --> 0:38:38.960
<v Speaker 17>disruption for the category, and I think that's been good

0:38:38.960 --> 0:38:40.319
<v Speaker 17>for us as a market leader.

0:38:40.680 --> 0:38:42.680
<v Speaker 4>Chime see, Chris Breys. Just great to have you back

0:38:42.719 --> 0:38:48.919
<v Speaker 4>in the studio here in San Francisco. I really appreciate it.

0:38:52.239 --> 0:38:54.760
<v Speaker 3>Talk art for a moment because Christy has just managed

0:38:54.760 --> 0:38:56.640
<v Speaker 3>to pull off a one hundred and fifteen million dollar

0:38:56.760 --> 0:39:00.080
<v Speaker 3>sale despite a cyber attack. It's an apparent hack that

0:39:00.239 --> 0:39:02.520
<v Speaker 3>actually hobbled the company's website in the days leading up

0:39:02.560 --> 0:39:05.520
<v Speaker 3>to the all important May sales, and Christy's website is

0:39:05.520 --> 0:39:08.760
<v Speaker 3>actually still redirecting to a temporary site as a sale began,

0:39:09.360 --> 0:39:12.279
<v Speaker 3>and prompting questions around whether or not this New York

0:39:12.360 --> 0:39:16.520
<v Speaker 3>auction could would happen at all, But around the company's

0:39:16.520 --> 0:39:19.520
<v Speaker 3>handling the private client confidential information, there were some concerns.

0:39:19.560 --> 0:39:21.960
<v Speaker 5>Now, a spokesperson told Bloomberg.

0:39:21.520 --> 0:39:24.360
<v Speaker 3>That Christie's continues to work with an additional team of

0:39:24.400 --> 0:39:25.320
<v Speaker 3>technology experts.

0:39:25.480 --> 0:39:28.600
<v Speaker 5>We're determining the scope and the impact of this incident.

0:39:29.320 --> 0:39:33.960
<v Speaker 4>Ed okay, and who better to talk about cybersecurity than

0:39:34.000 --> 0:39:37.319
<v Speaker 4>Steve Stone, head of Rubrics zero Labs, which recently put

0:39:37.360 --> 0:39:41.200
<v Speaker 4>out its latest report called the State of Data Security

0:39:41.880 --> 0:39:46.480
<v Speaker 4>Measuring Your Data Risks. And I take this very seriously, Steve,

0:39:46.520 --> 0:39:51.040
<v Speaker 4>because so many CSOs, CISOs CIOs watched this program, and

0:39:51.080 --> 0:39:54.839
<v Speaker 4>the conclusion of the report of those you surveyed is

0:39:54.880 --> 0:39:59.760
<v Speaker 4>that almost all of them are suffering direct emotional psychological

0:39:59.800 --> 0:40:01.760
<v Speaker 4>in from cyber attacks.

0:40:01.800 --> 0:40:03.040
<v Speaker 6>I found that to be astonishing.

0:40:03.600 --> 0:40:03.799
<v Speaker 9>Yeah.

0:40:03.800 --> 0:40:05.560
<v Speaker 18>Well, first, thank you for having me. I'm really excited

0:40:05.560 --> 0:40:07.520
<v Speaker 18>to be here and excited to engage their audience. And

0:40:07.520 --> 0:40:09.359
<v Speaker 18>I think the emotional impact was one of the things

0:40:09.360 --> 0:40:11.120
<v Speaker 18>that really jumped out at us, and I think it

0:40:11.200 --> 0:40:11.719
<v Speaker 18>makes sense.

0:40:12.160 --> 0:40:14.520
<v Speaker 6>What are we talking about here, emotional impacts. So I

0:40:14.520 --> 0:40:15.319
<v Speaker 6>think there's a few things.

0:40:15.360 --> 0:40:17.960
<v Speaker 18>I think the first is the vast majority of more

0:40:18.000 --> 0:40:21.080
<v Speaker 18>than sixteen hundred senior leaders both in IT and security

0:40:21.120 --> 0:40:23.080
<v Speaker 18>we engaged with, you know, more than ninety percent of

0:40:23.080 --> 0:40:26.480
<v Speaker 18>them reported having an emotional or psychological impact that ranged

0:40:26.520 --> 0:40:30.880
<v Speaker 18>from losing sleep, fear over losing their job, or fear

0:40:31.040 --> 0:40:33.600
<v Speaker 18>of their teams losing trust in them. And so we

0:40:33.680 --> 0:40:36.000
<v Speaker 18>see that consistently year over year, and I think it

0:40:36.040 --> 0:40:38.759
<v Speaker 18>really speaks to how this affects us as individuals and

0:40:38.800 --> 0:40:40.000
<v Speaker 18>not just as businesses.

0:40:40.960 --> 0:40:43.800
<v Speaker 3>Let's talk about how it affects businesses, to though, Steve,

0:40:43.920 --> 0:40:46.759
<v Speaker 3>and how these cso CIOs are trying to get a

0:40:46.760 --> 0:40:50.520
<v Speaker 3>little bit of bed, better sleep by putting precautions in place.

0:40:52.680 --> 0:40:55.160
<v Speaker 6>So I think that's the great question. That's the endpoint.

0:40:55.200 --> 0:40:57.600
<v Speaker 18>We can talk about the problems all day long, but

0:40:57.719 --> 0:41:00.359
<v Speaker 18>the real goal is reducing risk. And as we did

0:41:00.360 --> 0:41:02.719
<v Speaker 18>this research, a few things jumped out at us that

0:41:02.840 --> 0:41:06.600
<v Speaker 18>really impact that risk reduction and change that dynamic. First,

0:41:07.120 --> 0:41:10.880
<v Speaker 18>organizations have to be prepared for a contested recovery. You

0:41:10.960 --> 0:41:12.520
<v Speaker 18>see it in the news all the time. We've seen

0:41:12.560 --> 0:41:15.680
<v Speaker 18>it for years, really consistent touch point. You've got to

0:41:15.719 --> 0:41:18.759
<v Speaker 18>recover your data. You have to be resilient, and the

0:41:18.800 --> 0:41:21.319
<v Speaker 18>attackers know that and they'll do their best to stop it.

0:41:21.520 --> 0:41:23.640
<v Speaker 18>And the second part is when we look at this

0:41:23.800 --> 0:41:26.600
<v Speaker 18>from a data perspective, you have to involve a high

0:41:26.680 --> 0:41:29.279
<v Speaker 18>number of teams. This is not a seesoll problem, this

0:41:29.440 --> 0:41:30.760
<v Speaker 18>is not a CIO problem.

0:41:30.800 --> 0:41:31.840
<v Speaker 6>This is everyone's problem.

0:41:32.040 --> 0:41:34.879
<v Speaker 4>State very quickly, we're to stand the show there must

0:41:34.960 --> 0:41:38.000
<v Speaker 4>be a growing threat. Therefore what are they facing from

0:41:38.040 --> 0:41:39.160
<v Speaker 4>the other side of the table.

0:41:39.719 --> 0:41:42.400
<v Speaker 18>I think the growing threat comes down to we're creating

0:41:42.480 --> 0:41:44.880
<v Speaker 18>a risk surface area that we're not paying attention to,

0:41:45.000 --> 0:41:46.800
<v Speaker 18>and that comes down to sensitive data.

0:41:46.920 --> 0:41:49.120
<v Speaker 6>So if we look at healthcare, healthcare is in the news.

0:41:49.400 --> 0:41:52.120
<v Speaker 18>There's not a unique threat to healthcare, but we see

0:41:52.200 --> 0:41:56.760
<v Speaker 18>outsized impacts of ransomwa against healthcare. Four hundred percent more

0:41:56.840 --> 0:42:00.279
<v Speaker 18>sensitive data is impacted in a healthcare intrusion than in

0:42:00.320 --> 0:42:03.120
<v Speaker 18>other industries. And that's not because it's different. It's not

0:42:03.160 --> 0:42:05.920
<v Speaker 18>because the threats are novel. It comes down to sensitive data.

0:42:06.120 --> 0:42:07.839
<v Speaker 18>And so when we look at how we change this,

0:42:07.880 --> 0:42:10.600
<v Speaker 18>we've got to start with where those impacts actually are.

0:42:11.040 --> 0:42:13.560
<v Speaker 3>Very briefly, Steve, is it many the US where you're

0:42:13.560 --> 0:42:14.480
<v Speaker 3>seeing the anxiety?

0:42:14.560 --> 0:42:16.200
<v Speaker 5>Is this global phenomenon.

0:42:16.840 --> 0:42:17.800
<v Speaker 6>We're seeing it globally.

0:42:17.960 --> 0:42:21.400
<v Speaker 18>There are really consistent trends across all regions, all industries

0:42:21.400 --> 0:42:24.640
<v Speaker 18>from a threat perspective, where we see the changes in

0:42:24.760 --> 0:42:28.440
<v Speaker 18>impacts really come down to industry unique aspects.

0:42:29.160 --> 0:42:32.520
<v Speaker 3>Steve Stone taking us through the industries implicated, the individuals implicated.

0:42:32.560 --> 0:42:33.759
<v Speaker 5>We thank you so much for some of.

0:42:33.680 --> 0:42:37.000
<v Speaker 3>The tactics to deploy Steve Stone's head of Rubric Zero

0:42:37.160 --> 0:42:37.959
<v Speaker 3>Labs on.

0:42:37.920 --> 0:42:38.640
<v Speaker 5>All things cyber.

0:42:38.760 --> 0:42:41.319
<v Speaker 3>Meanwhile, that's all things done on this addition of Blue

0:42:41.320 --> 0:42:41.920
<v Speaker 3>med technology.

0:42:42.040 --> 0:42:42.120
<v Speaker 7>ED.

0:42:42.680 --> 0:42:43.840
<v Speaker 6>I know I should be paying attention.

0:42:43.880 --> 0:42:46.560
<v Speaker 4>I am, but during that conversation a load of CIOs

0:42:46.560 --> 0:42:48.719
<v Speaker 4>and CSO has added me on LinkedIn, so we know

0:42:48.800 --> 0:42:51.319
<v Speaker 4>they're watching. And if you have any reaction to Seeve,

0:42:51.600 --> 0:42:53.560
<v Speaker 4>get in touch with us or recap the conversation in

0:42:53.640 --> 0:42:55.839
<v Speaker 4>the show ED with your social I don't get distracted.

0:42:55.920 --> 0:42:57.759
<v Speaker 6>This is on the ground reporting.

0:42:58.480 --> 0:43:00.960
<v Speaker 4>Check out the podcast recap that conversation with Steve and

0:43:00.960 --> 0:43:03.640
<v Speaker 4>all the others, particularly with Frank McCourt Jr. And his

0:43:04.160 --> 0:43:06.840
<v Speaker 4>new bid for TikTok's US assets. You know where to

0:43:06.880 --> 0:43:09.160
<v Speaker 4>find the pod. So many of you listening to us

0:43:09.160 --> 0:43:10.600
<v Speaker 4>on your way to work, on your way home, and

0:43:10.640 --> 0:43:12.640
<v Speaker 4>your lunch break, all around the world, and we really

0:43:12.680 --> 0:43:15.640
<v Speaker 4>appreciate it. From SF and New York City, this is

0:43:15.640 --> 0:43:16.759
<v Speaker 4>Bloombo technology