Speaker 1: From Markhard We're Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3: I'm karenin Hide, Bloomberg's world headquarters in New York. Ed Ludlow,
Speaker 3: He's off. This is Bloomberg Technology. Coming up. We go
Speaker 3: live to Kubutuina, California, as Apple's Annual Developers Conference kicks off.
Speaker 3: Full coverage ahead. Thus we sit down with DreamWorks founder
Speaker 3: Jeffre Katzenberg. That's this. This venture firm raises nearly half
Speaker 3: a billion dollars for a new fund, and we sit
Speaker 3: down with Movie Past co founder Come It What to
Speaker 3: discuss the new documentary on the company's dramatic rise. And
Speaker 3: it's full first. That's checking on these markets. And look,
Speaker 3: we have a lot to digest when it comes to
Speaker 3: political risk over in Europe, when it comes to anticipating
Speaker 3: what the Fed does, and indeed where CPI pushes us
Speaker 3: from the US macro perspective. And we have some new
Speaker 3: entrance to the S and P five hundred and some
Speaker 3: of them are tech names and they're helping them in
Speaker 3: the Nasdaq sustain a little bit of risk on attitude.
Speaker 3: We're up just a tenth of fve percent on the
Speaker 3: key tech benchmark. We're looking though at bond selling off
Speaker 3: across the board, most notably in Europe, but US yields
Speaker 3: also pushing up as we do or have some trepidation
Speaker 3: about which direction the Federal Reserve points has come Wednesday
Speaker 3: and Thursday throughout the week. Indeed, we euro under pressure
Speaker 3: look down six tens percent. This is about France. This
Speaker 3: is about political risk. This is about the right basically
Speaker 3: gaining yet more power when it comes to European Parliament
Speaker 3: and what the French President Macron is trying to do
Speaker 3: to perhaps gain back the narrative, calling of course a
Speaker 3: key legislative vote. Let's move on and have a look
Speaker 3: at what's happening in terms of individual names on the
Speaker 3: tech area though, because Microsoft up six tens one percent,
Speaker 3: we've got a BI rating coming back on this company.
Speaker 3: They're seeing. Further uptick on the share prices is all
Speaker 3: around AI, of course, and it's leading us from a
Speaker 3: points perspective. In Vidia actually turning to the upside rop
Speaker 3: sevent tens percent, which have been down when trading first
Speaker 3: started in what is now a much smaller price point
Speaker 3: tenth of the price point that we'd seen currently on Friday.
Speaker 3: Of course, because we've got that stock split. One hundred
Speaker 3: and twenty one is where we currently trade. Maybe retail
Speaker 3: liking this new price point. I'm looking at Apple though
Speaker 3: one hundred ninety five were off by three quarters of percent.
Speaker 3: We are all eyes on WWDC what we'll get in
Speaker 3: Apple in terms of its AI focus, what Apple Intelligence
Speaker 3: is there. Jackie Devlos is with us live from Couviutino
Speaker 3: to discuss really what we're going to expect, a whole
Speaker 3: raft of how AI is going to be injected into
Speaker 3: the software and into the hardware.
Speaker 4: Jackie, expectations are really high, Caroline. In just under two hours,
Speaker 4: Tim Cook is going to deliver a keynote address which
Speaker 4: will lay out this artificial intelligence vision. Now, thanks to
Speaker 4: Mark German's reporting, we have a little bit of a preview.
Speaker 3: For us what to expect.
Speaker 4: The first being its AI system called Apple Intelligence. This
Speaker 4: is where we will see some generative artificial intelligence features
Speaker 4: being embedded across the iPhone, iPad and MAX with that
Speaker 4: new operating system upgrade. There will also be a major
Speaker 4: announcement with OpenAI. This is the technology, of course that
Speaker 4: powers Chat GPT, which will bring a version of a
Speaker 4: chatbot to Apple and perhaps even provide a makeover for
Speaker 4: its current AI assistant SII. There's a lot hanging here, Carolina,
Speaker 4: especially because Apple has been viewed as somewhat of a
Speaker 4: laggard in comparison to tech peers like Microsoft and Google,
Speaker 4: which it is also in conversations with for its large
Speaker 4: language model technology Gemini.
Speaker 3: I like that context, Jackie, because there has been a
Speaker 3: lot in anticipation, most markedly in the share price managing
Speaker 3: to push higher market capitalization back on top for Apple,
Speaker 3: and I'm interested as to whether really we're going to
Speaker 3: be able to steal the narrative back. Is having partnerships
Speaker 3: good in the short.
Speaker 4: Term, that's certainly the hope. But Apple really isn't fooling
Speaker 4: anyone here. It is somewhat behind the curve, and this
Speaker 4: keynote address will really show just exactly how it intends
Speaker 4: to bring some of that momentum back. Think about exactly
Speaker 4: what Apple excels at devices and really coupling that with
Speaker 4: cutting edge software, but AI and specifically generative AI is
Speaker 4: a whole new ball game. So just exactly how it
Speaker 4: plans to integrate AI features across products like air pods
Speaker 4: for example, or even bring it into augmented reality devices
Speaker 4: or home robotics. That will really provide the longer term
Speaker 4: picture for how AI will change Apple's future.
Speaker 3: Jackie Devilos on the ground love the reporting for a
Speaker 3: couple of hours. Still to wait, Let's keep this conversation going.
Speaker 3: That's going to really feel for whether or not this
Speaker 3: is going to help them shift more phones. Marabella Lopez
Speaker 3: is with US Bounder and Principle Analysts that Lopez Research,
Speaker 3: and Marabel is great to have your voice, because that's
Speaker 3: what everyone's wandering is the AI announcement's going to be
Speaker 3: enough to make us upgrade our phones right now.
Speaker 5: We're seeing with the smartphone market right now, and it
Speaker 5: has been driven primarily by AI features. We've seen the
Speaker 5: camera features come into it, but I actually don't think
Speaker 5: it's just the smartphones we're looking at. As mentioned earlier,
Speaker 5: we're seeing the opportunity for Apple to infuse artificial intelligence
Speaker 5: across this entire stack, including the Vision pro which when
Speaker 5: you look at the augmented reality virtual reality market, we
Speaker 5: still have a long way to go in terms of
Speaker 5: customers adopting this in droves. So there's great opportunity across
Speaker 5: the entire stack. I don't think anybody's really talked about
Speaker 5: the opportunity to improve the services landscape with artificial intelligence.
Speaker 6: So we're actually going.
Speaker 5: To see a lot of activity I think with AI
Speaker 5: across the entire Apple portfolio and including the developer landscape,
Speaker 5: where we expect them to have easier to access software
Speaker 5: coding tools using generative AI.
Speaker 3: And this is what is meant to be about. Yes,
Speaker 3: investors get excited, but we're meant to be seeing the
Speaker 3: developers get excited. Here, Marma, I'm interested in what you're
Speaker 3: saying about services. How will that shift?
Speaker 5: So what we're saying right now services have looked pretty
Speaker 5: much the same since the dawn of cable. We go in,
Speaker 5: we select a program, there's a lot of pull, not
Speaker 5: necessarily enough push or recommendations or guidance. So there's a
Speaker 5: tremendous opportunity there in terms of how do we make
Speaker 5: things more discoverable moving forward.
Speaker 6: So that's one aspect of it. We haven't talked a
Speaker 6: lot about healthcare yet.
Speaker 5: There's a real opportunity with AI to fundamentally change what
Speaker 5: could happen in some of the smart watch on health
Speaker 5: apps going forward. So really, I know that everybody said
Speaker 5: Apple is behind an AI, but I'd like to pose
Speaker 5: the question of how much revenue they really lost by
Speaker 5: quote unquote being behind. If you look at the only
Speaker 5: person that's really making a ton of money on AI
Speaker 5: right now, it's in Nvidia. If you're selling picks and shovels,
Speaker 5: you make a lot of money in AI. Everybody else
Speaker 5: is just still coming up with a strategy that they're
Speaker 5: trying to propose to consumers to get them excited about
Speaker 5: the new technology.
Speaker 3: You might argue, maybe Microsoft's make some revenue, and certainly
Speaker 3: they've been able to do so by teaming up with
Speaker 3: open Ai. How Marvell should that ongoing partnership look like
Speaker 3: if we do see the open Ai Apple convergence here.
Speaker 5: Yeah, this is really interesting because I think we've seen
Speaker 5: all the cloud competing providers tie up with foundation model
Speaker 5: companies and it's been very good for them because the
Speaker 5: money they have to invest to build the foundation models
Speaker 5: themselves doesn't make any sense. I think this is the
Speaker 5: same for Apple. They can tie up, they can use
Speaker 5: the foundation models. We're seeing a wide range of innovation
Speaker 5: that's happened over the past year so Caroline, so we
Speaker 5: have many models. I expect Apple in the longer term
Speaker 5: to be what we call AI engine agnostic. You know,
Speaker 5: put in any foundation model. That's not where the differentiation comes.
Speaker 5: The differentiation comes from not just them using the language
Speaker 5: from generative AI, but from them actually building their own
Speaker 5: AA models to layer on top of that. And you
Speaker 5: would better bet that Apple is building its own AI
Speaker 5: models as well to layer on top of this. So
Speaker 5: the combination of these two means of things that are
Speaker 5: say more pedestrian and generic in nature for AI, they
Speaker 5: can outsource to a foundation model company, but the things
Speaker 5: that would be more specific to Apple products, those are
Speaker 5: the things that they're going to invest their AI talent in.
Speaker 3: And maybe we've seen this time and time again that
Speaker 3: Apple isn't first, but it's best, and we're waiting for
Speaker 3: ultimately then to articulate what is going to be better then,
Speaker 3: for example, how already Samsung's infused Google AI within its hardware.
Speaker 3: Will it just beat out the competition.
Speaker 5: I think what we're looking at right now is how
Speaker 5: will Apple propose the use of multimodal models. So everyone
Speaker 5: says that Apple's behind, but that was on the basic
Speaker 5: generative AI chatbot style model. What we saw in Google
Speaker 5: Io was really a new way to think about how
Speaker 5: to use AI in terms of adding vision and imagery
Speaker 5: and generating a wide range of things, or using it
Speaker 5: to say change a process, look at an image and
Speaker 5: suggest how to make it better if it were even.
Speaker 6: A process or a workflow.
Speaker 5: So I think there's a tremendous app oportunity for Apple
Speaker 5: to show that across as stack, and this is what
Speaker 5: I think is better. It's not enough to just layer
Speaker 5: a chatbot on top of your software and say I've
Speaker 5: made it better. You actually want to create a fundamentally
Speaker 5: new experience, and this is I think where Apple excels
Speaker 5: as creating that easier experience. So they're not first to
Speaker 5: market with a lot of things, but they're the first
Speaker 5: to try to make it the best to market.
Speaker 3: We are seeing hope some exuberance factor back into the
Speaker 3: overall market capitalization of Apple. We're back at a three
Speaker 3: trillion dollar handle. We're looking at nearly eclipsing the record
Speaker 3: high that we saw back in twenty twenty three. Marama,
Speaker 3: do you think it will be revenue generating in the
Speaker 3: near term from an AI perspective for Apple?
Speaker 5: I absolutely think that AI will be revenue generating, because
Speaker 5: if you don't have a good AI stack in your product,
Speaker 5: you're actually not going to be able to sell a
Speaker 5: product in twenty twenty four and beyond.
Speaker 6: So therefore it will be revenue generating.
Speaker 5: The question has always been how much and can it
Speaker 5: outsize the competition, So this is still to be determined,
Speaker 5: but we're all very optimistic that Apple spent a a
Speaker 5: lot of time thinking about this.
Speaker 6: They didn't race into the market, so.
Speaker 5: They could come with a very solid showing at WWDC
Speaker 5: in what I would consider the things that matter. I
Speaker 5: do think that from a technical standpoint, we always expect
Speaker 5: Apple to blow the doors off of it, but I
Speaker 5: really think we have to look at would somebody really
Speaker 5: be pleased with this as opposed to is it going
Speaker 5: to revolutionize the world.
Speaker 6: And I think if they can nail that, they can
Speaker 6: nail people really wanting to use AI because.
Speaker 5: It does something meaningful for them, then they will sell
Speaker 5: a ton of iPhones, smart watches, they may even sell
Speaker 5: a fair amount of vision pros, particularly in the enterprise market.
Speaker 5: So we're really optimistic and excited to see what they
Speaker 5: show us next.
Speaker 3: A little lesson two hours ago Marvell Dave has thank
Speaker 3: you so much for putting us towards that excitement. Found
Speaker 3: a principle, analyst ever at Lopez Research. Meanwhile, coming up
Speaker 3: some shareholders over at Tesla Key Highes this week too
Speaker 3: the vote on the fifty six billion dollar pay package
Speaker 3: for CEO Ino Mask. We'll get the latest on what
Speaker 3: we can expect from the vote next. Well, let's just
Speaker 3: shine up on the mean stock. There was all the
Speaker 3: rator on Friday as Roaring Kitty came back to YouTube.
Speaker 3: GameStop now under pressure still by more than three point
Speaker 3: eight percent. That's as we know that they're selling more shares,
Speaker 3: trying to make the most some of the hype within
Speaker 3: the share price twenty seven dollars is where we trade
Speaker 3: Beard analyst Colin Sebastian saying, look the results we got
Speaker 3: on Friday. The disappointing results underscore ongoing challenges to the
Speaker 3: company's retail business model. This is bruly med technology.
Speaker 7: Now.
Speaker 3: The Supreme Court has agreed to Meta's request to consider
Speaker 3: killing a multi billion dollar shareholder lawsuit that accuses the
Speaker 3: social media john of misleading investors about the data harvesting
Speaker 3: scandal evolving political consulting firm Cambridge Analytica. Remember that one
Speaker 3: joining us now to really go into why this is meaningful,
Speaker 3: rugs Mike Shephard over in Washington, and actually is not
Speaker 3: just Meta that perhaps once it's killed off, but certainly
Speaker 3: the Chamber of Commerce wants to have this heard by
Speaker 3: the Supreme Court because they're worried that there's a misreading
Speaker 3: of what's happening with the sec And there's a lot
Speaker 3: of well lawsuits, a wave of meritless securities fraud suits
Speaker 3: they call.
Speaker 2: Well, Carolyn.
Speaker 1: When you look at the stakes for Meta, it is financial.
Speaker 1: It's a two billion dollars potential settlement.
Speaker 6: When you talk to our Bloomberg.
Speaker 1: Intelligence analysts, our colleague Schttenhelm has analyzed this and found
Speaker 1: that it could be that kind of a payout for
Speaker 1: the company to those aggrieved shareholders. But the stakes are
Speaker 1: far wider as alluded to, because look, since two thousand
Speaker 1: and five, the Securities and Exchange Commission has required companies
Speaker 1: to disclose the risks that could have a material impact
Speaker 1: on a share price. It could be information, it could
Speaker 1: be an event, and the shareholders in this case were
Speaker 1: alleging that Facebook was too slow in disclosing those risks
Speaker 1: from the Cambridge Analytica episode. Now the Chamber of Commerce
Speaker 1: and others that are saying that those same rules have
Speaker 1: been too widely applied and are generating a whole bunch
Speaker 1: of rivolous and their view lawsuits that have no merit,
Speaker 1: and they have sided with Meta in this case.
Speaker 3: It is interesting just to go back to July twenty eighteen.
Speaker 3: That was when we saw the biggest eroad and of
Speaker 3: value with that stock plunge, as we started to perhaps
Speaker 3: front run what ultimately the damage from Cambridge Analytica and
Speaker 3: the reporting on it could mean for Meta A. Meta's
Speaker 3: argument here is that we could never have anticipated how
Speaker 3: babb this would get for a shareholder perspective.
Speaker 1: And also they're seeing, Caroline that all of the information
Speaker 1: and risks were out there already. They had been reported
Speaker 1: publicly by The Guardian and then by the New York Times,
Speaker 1: so that the element of surprise for shareholders was really
Speaker 1: gone at least as far as this episode was concerned.
Speaker 1: And the concern from the company is that they are
Speaker 1: being punished for something that is so far back and
Speaker 1: that maybe since then has been wiped out if you
Speaker 1: look at how the company's shares have gained since then
Speaker 1: thanks to acquisition and expansion other changes.
Speaker 3: Meanwhile, of course, as shareholders say the company had inadequate disclosures,
Speaker 3: we'll see how this goes. Mike Shepard, brilliant, Thank you
Speaker 3: so much. Indeed, meanwhile, let's just talk about some other shareholders. Now,
Speaker 3: Tesla's because they're voting this week on a fifty six
Speaker 3: billion dollar pay package to CEO Elo Musk. Let's get
Speaker 3: into the details. But me megs Max traffickin his hair.
Speaker 3: And what's interesting is, well, this, even if it goes through,
Speaker 3: it might not help Elon Musk get his fifty six
Speaker 3: billion dollar pay package.
Speaker 2: Yeah.
Speaker 8: Absolutely, this is going to be settled in Delaware court,
Speaker 8: and I suppose possibly in Texas court or maybe in
Speaker 8: a federal court at some point, depending on how Elon
Speaker 8: Musk responds. But what Tesla is trying to do is create,
Speaker 8: as our colleagues Dana Hall and Jeff feely Road, is
Speaker 8: to create a kind of way to explain this to
Speaker 8: the court. They're going to say, look, our shareholders approved
Speaker 8: it in twenty eighteen. Now they're approving it again, hopefully
Speaker 8: as far as Elon Musk is concerned.
Speaker 3: In twenty twenty four, So it's.
Speaker 8: More about forming the appeal rather than some kind of
Speaker 8: definitive resolution to this case.
Speaker 3: It's like narrative basically one hundred percent. But the narrative
Speaker 3: with some of the well proxy investigots and those advising
Speaker 3: shareholders hasn't been great. I've been saying, don't go with this.
Speaker 8: So these proxy advisors generally don't back these gigantic pay packages.
Speaker 8: They did not back the twenty eighteen one. But what
Speaker 8: is interesting here is that you have some major shareholders
Speaker 8: coming out and saying we are against this. Over the weekend,
Speaker 8: the Norwegian Sovereign Wealth Fund said that they're going to
Speaker 8: vote against this pay package, or that as as far
Speaker 8: as they're concerned right now, they're going to Maybe there'll
Speaker 8: be some further negotiation between now and Thursday, but in
Speaker 8: any case, that fund is a major shareholder, top ten shareholder.
Speaker 8: Norway's also a huge market for Tesla, so that seems
Speaker 8: like a significant kind of caution light for elon Musk
Speaker 8: right now.
Speaker 3: Thirteen can keep an eye MaTx Chafkin with all the
Speaker 3: details on Tesla. There's a new documentary out there from
Speaker 3: Max and it's highlighting the rise and then the fall
Speaker 3: of Movie Past, the subscription app that allowed users to
Speaker 3: go to as many movie showings as they want from
Speaker 3: a monthly fee with highlighting also how the founders they
Speaker 3: lost control of the company and it's narrative they're regaining it.
Speaker 3: How may what was one of those founders? And indeed
Speaker 3: you're now Upfront Ventures as a board partner. You've got
Speaker 3: share ventures as well, where you're trying to reclaim the
Speaker 3: narrative of allocating money and capital to minority founders in particularly.
Speaker 3: How many out there might go, sorry, you're the founder,
Speaker 3: you're a co founder. I thought it was Ted Farnsworth.
Speaker 3: I thought it was Mitch low educate us.
Speaker 2: Yeah, yeah, well it was a process.
Speaker 9: My co founder and I, who were in love with
Speaker 9: the movie going process, wanted to innovate on the model
Speaker 9: and started a company twenty eleven. We raised a couple
Speaker 9: of rounds of capital, but got to a place like
Speaker 9: many other entrepreneurs, where we struggled, and so we had
Speaker 9: to raise some capital from some folks that we probably
Speaker 9: didn't know as well as we should have known.
Speaker 2: And ultimately they were able to invest quite a bit of.
Speaker 9: Money into the company and take over the company, and
Speaker 9: it was just quite an experience.
Speaker 2: You have to watch the movie get all the details.
Speaker 3: And actually the documentary does a good bait and switch
Speaker 3: in a way of allowing you to go with what
Speaker 3: your own biases that there's these two white co founders,
Speaker 3: and in fact, there were two black co founders who
Speaker 3: were ousted. And I'm interested now as to what you
Speaker 3: think the learning of the overall documentary is. Because you
Speaker 3: say you struggle to make and get funding like many,
Speaker 3: but do you think you were less likely to get
Speaker 3: funding because the fact that you were black?
Speaker 2: A little bit? But I was very mindful in this documentary.
Speaker 2: I didn't want it to be a black versus white thing.
Speaker 9: You know, all entrepreneurs struggle at some level raising capital,
Speaker 9: and we were very fortunate in our early investors were
Speaker 9: all white, so it really wasn't exactly that, but it's natural.
Speaker 9: One of the things we talk about is just the
Speaker 9: idea that sometimes we walk into the room raising capital.
Speaker 9: We're probably the first time that at that time, at
Speaker 9: least the two black co founders were walking in trying
Speaker 9: to innovate on.
Speaker 2: In an industry and trying to reimagine the industry. So
Speaker 2: that's hard by itself.
Speaker 9: It's also hard when you have the extra unfamiliarity of
Speaker 9: not having invested, perhaps in folks that looked like us.
Speaker 3: What's interesting, your other co founder, Stacy Spikes, has gone
Speaker 3: back and bought the business afterwards raised its value, and
Speaker 3: he's brought it back and he's still innovating. But almost
Speaker 3: your premise was right. You just needed the movie theaters
Speaker 3: not to build their own subscriptions, which they went and did,
Speaker 3: But really the issue was about the price point here.
Speaker 3: What do you think about the price points of moviegoing,
Speaker 3: of content consuming, of the way in which we see
Speaker 3: the landscape evolving.
Speaker 9: Yeah, it felt like such an inevitable change to happen
Speaker 9: in the movie going space. It's kind of why I
Speaker 9: went out. I came to LA to begin with twenty
Speaker 9: years ago because I felt like some of this industry
Speaker 9: was slower to innovate. So we did feel like it
Speaker 9: was inevitable. We felt like, really the opportunity to be
Speaker 9: a Switzerland in the space was the sweet spot. Of course,
Speaker 9: they're opportunities for silos and for folks to be able
Speaker 9: to do it on their own, but we thought that
Speaker 9: the idea that there could be a community that tied
Speaker 9: it all together could be special, and then we were
Speaker 9: also going to innovate. We did innovate quite a bit
Speaker 9: more than a lot of the folks were individually.
Speaker 2: It's been a great lesson.
Speaker 9: I think it was a long time ago that we
Speaker 9: started that company, and where movies was probably.
Speaker 2: More centric to our world.
Speaker 9: I've now moved on to focus on health and longevity
Speaker 9: and things that I'm.
Speaker 2: Much more passionate about.
Speaker 9: But Stacey's making a go at it, and he's doing
Speaker 9: a great job. I think he's turned the company to
Speaker 9: be profitable, and he's figured out the pricing model that
Speaker 9: will work long term.
Speaker 3: How much do you think there's still an issue of
Speaker 3: founders versus the money they raise? Who has the power
Speaker 3: when ultimately some of these contracts are written.
Speaker 2: Yeah, I think you know it ebbs and flows.
Speaker 9: I mean, there are times where the founders and the
Speaker 9: entrepreneurs have significantly more leverage because there's way more capital
Speaker 9: than there is there is companies, and then sometimes capital
Speaker 9: has a lot more control and power and say so,
Speaker 9: I think ultimately it's it's you know, as a founder
Speaker 9: and an investor, I try not to think about that.
Speaker 9: I try not to take advantage of leveraging in a
Speaker 9: way that's going to be unfair, because it's the tide
Speaker 9: is going to change at some point anyway. And I
Speaker 9: think we're seeing that play out now as the markets
Speaker 9: are starting to come back in terms of the private
Speaker 9: markets and investors becoming more aggressive again, and now entrepreneurs
Speaker 9: and the leverage is starting to shift back and forth again.
Speaker 3: You're focused on wellness, as you say, longevity those founders
Speaker 3: out there, honey, And how are you seeing the ability
Speaker 3: for yourself to write checks and how are you seeing
Speaker 3: things different from when you were out there trying to fundraise?
Speaker 9: Yeah, I'd say there are a couple of things. One
Speaker 9: is my model is slightly different. I have a venture
Speaker 9: studio and a fund, and so I like, I like
Speaker 9: being on both sides of the table, so to speak.
Speaker 9: I like inventing and reimagining new new businesses. And then
Speaker 9: I also like supporting entrepreneurs, and I also like I
Speaker 9: support entrepreneurs that oftentimes may not get that opportunity. I'm
Speaker 9: looking for something different in many ways. I think it's
Speaker 9: changing a lot. I hope we're going to see some
Speaker 9: outcomes that start to prove that. But there's a tremendous
Speaker 9: amount of talent and we're really looking at opening the
Speaker 9: aperture now to figure out how to get more talented
Speaker 9: entrepreneurs into the game. More talented operators, scientists, innovators, more
Speaker 9: perspectives on problems leads to better solutions to problems.
Speaker 2: So I'm excited about where we're going.
Speaker 9: There's still a long way to go, don't get me wrong,
Speaker 9: but I think we're in a good place.
Speaker 3: Well, I'm excited about having some of those founders that
Speaker 3: you're working with, having some of the studio comptanies that
Speaker 3: you build and then birth and grow coming on the show.
Speaker 3: How may we come back you? Of course a million
Speaker 3: for past co founder. Welcome back to Bluemore Technology. I'm
Speaker 3: Carolin Hide in New York. Quick check on these markets
Speaker 3: because we'rewithstanding some of the overall pressure on the markets
Speaker 3: coming over from risker version in Europe and actually pushing
Speaker 3: higher in tech wet three times sent on the Nastak
Speaker 3: one hundred, Microsofts, some of the other key names managing
Speaker 3: to lead us higher on a points perspective. I'm looking
Speaker 3: at the French tenure yield as Europe ends at day trading.
Speaker 3: What a political upheaval day of trading it has been
Speaker 3: and of course concerns about what's happening with Macron calling
Speaker 3: that legislative vote, and we're seeing yields to push up
Speaker 3: some twelve thirteen basis points. We're also looking though at Bitcoin,
Speaker 3: managing to still be up about three tens percent. It's
Speaker 3: allD off hard on Friday. We're now still gathering a
Speaker 3: little bit of a steam at sixty nine thousand, near
Speaker 3: that record high there or thereabouts. Move on, have a
Speaker 3: look at what's happening on the individual movers at the moment.
Speaker 3: I'm looking at Nvidio. It happened with stock split. We're
Speaker 3: now up more than a percentage point, having actually just
Speaker 3: sold off into that move that happened, of course on
Speaker 3: Thursday Friday. We're currently one point five points higher the
Speaker 3: SCILLA one hundred and twenty two, so well well ten
Speaker 3: percent of where we were trading back on Friday. I'm
Speaker 3: looking at Apple one hundred and ninety five. We're currently
Speaker 3: down by seven tens of percent. We have built and
Speaker 3: crescendoed in terms of market capitalization into today, which is WWDC.
Speaker 3: We really want to understand what we're going to be
Speaker 3: getting from AI from Apple. Intel legends over in Apple
Speaker 3: Park now and we want to bring in Carolina Milanesy,
Speaker 3: President and principal analyst that creative strategies for your take
Speaker 3: and what to expect today, we are going to get
Speaker 3: a whole host of the way in which developers are
Speaker 3: going to be able to innovate across Apple, but also
Speaker 3: what me as a consumer might want to therefore go
Speaker 3: out and buy a new phone for what are you
Speaker 3: excited for?
Speaker 10: Absolutely, I think you're spot on in both today being
Speaker 10: about the developers and how they can leverage artificial intelligence
Speaker 10: to drive more experiences through their applications. But then is
Speaker 10: about the consumer and for Apple is always about the hardware.
Speaker 3: Is about bringing.
Speaker 10: Value back to the hardware so that we want to upgrade,
Speaker 10: so we want to stay up today as a consumer perspective,
Speaker 10: so to me, is going to be about ease of views,
Speaker 10: is going to be about really mass market things that
Speaker 10: consumer want to do. Maybe around the camera is always
Speaker 10: a big thing for consumers today, or the use of
Speaker 10: the phone itself.
Speaker 3: The phone gets to do.
Speaker 10: More and more today in navigating it might become a
Speaker 10: bit cumbersome.
Speaker 3: It's interesting that you say the photo the camera. I
Speaker 3: mean ostracial intelligence has been interlaced within Apple's products, particularly
Speaker 3: when in the photo product for a long time. It's
Speaker 3: just generative AI has brought about this idea that Apple's
Speaker 3: behind the curve? Is it truly behind the curve? Karina?
Speaker 10: I think no consumer is running into a store today
Speaker 10: asking for genitive AI, right. I think from a street perspective,
Speaker 10: there is a perception that Apple hasn't talked enough about
Speaker 10: generative live, not at all up until now. But the
Speaker 10: reality is there are different kinds of AIS, and as
Speaker 10: you point out, Apple has been doing AI for a
Speaker 10: long time, from machine learning from a silicon perspective into
Speaker 10: their neural engine, so they're not behind from a technology
Speaker 10: perspective per se. What we want to see is more
Speaker 10: or actually what the streets wants to see is more
Speaker 10: proof that they have all the ingredients in place to
Speaker 10: deliver and stay in pace with the Microsoft and Google
Speaker 10: of the world.
Speaker 3: And also how long those ingredients last. Open AI a
Speaker 3: partnership with that company short to medium term.
Speaker 10: That's an interesting if it's true, it's a very interesting
Speaker 10: collaboration because it's the first time that we would see
Speaker 10: Apple really bringing a name. Obviously, we know that they're
Speaker 10: collaborating with Google for parts of their search and everything else.
Speaker 10: But you know, it's the first time that we will
Speaker 10: see a name associated with Apple for a delivery of
Speaker 10: an experience. And I do think this is much more
Speaker 10: longer term than short term.
Speaker 3: Creative strategies is in your business's name. So can you
Speaker 3: tell us how Apple is going to get creative with
Speaker 3: the way in which we use the phone going forward?
Speaker 3: How will generative AI change the way in which I
Speaker 3: use my next latest and greatest software and hardware from Apple.
Speaker 10: You look at the history from an iPhone perspective, the
Speaker 10: things that always resonated with consumers are things that you
Speaker 10: use every day. You know, if you think about the
Speaker 10: beauty of I, message for a lot of people is
Speaker 10: about seamless experience in communicating is a rich experience in
Speaker 10: the way that you communicate.
Speaker 6: You know.
Speaker 10: Emojis were that thing that Apple was just just got
Speaker 10: everybody excited about, and there are rumors about a new
Speaker 10: version of emojis that will leverage generality AI. You know,
Speaker 10: it's the things that I use every day that are
Speaker 10: going to get me even more entrenched into the ecosystem
Speaker 10: that Apple is trying to do, because that at the
Speaker 10: end of the day is what that engagement, that everyday
Speaker 10: dependency is what is going to get consumers to continue
Speaker 10: to look for the next device, the next experience.
Speaker 3: Does Apple in its entirety have to shift. There's an
Speaker 3: interesting line in some of the reporting done by Mark
Speaker 3: Gumman and others here a Bloomberg that bas it's going
Speaker 3: to have to shift from what is a hardware software
Speaker 3: services business more to becoming like a hardware AI cloud
Speaker 3: company and what does that distinction really mean?
Speaker 10: The cloud part is going to be important going forward
Speaker 10: for sure, because obviously from an generitivevi I perspective, you
Speaker 10: do need a cloud component. I do think that there
Speaker 10: is end versus or, and I do think the generative
Speaker 10: VII is going to be pervasive across their experiences. From
Speaker 10: a software perspective as well as services perspective. There's a
Speaker 10: lot that GENERAITI VII for instance, can do as far
Speaker 10: as music or Apple TV shows the recommendations. So there's
Speaker 10: a lot there that the holy ecsystem can benefit from,
Speaker 10: and the cloud will be a means to deliver that.
Speaker 3: You're ultimately saying, we need to hear from them that
Speaker 3: they've got all the bits in place, the infrastructure necessary
Speaker 3: to leverage. What is this new generative AI reality we're
Speaker 3: going to hit carry? But how quickly do you think
Speaker 3: it will be ultimately revenue generating for Apple? How quickly
Speaker 3: will they see the rewards of some these investments.
Speaker 10: I would think that the first thing we're going to
Speaker 10: see is a replacement cycle, right, That's going to be
Speaker 10: the biggest way to see the return of investment from
Speaker 10: a revenue perspective. Obviously, with a lot of compute necessary
Speaker 10: on the device, you are going to need the latest
Speaker 10: and greatest silicon on the device. So I think it
Speaker 10: is natural to think that if you have a phone
Speaker 10: that is three four years old, you will have to
Speaker 10: upgrade in order to take advantage of a new features
Speaker 10: that are coming that are based on generative AI. So
Speaker 10: the first thing you'll see is an upgrade cycle across
Speaker 10: the devices. We've seen it already with the M four
Speaker 10: chip in the iPad that was launched just over a
Speaker 10: month ago.
Speaker 3: Will it make us buy a Vision Pro? I don't
Speaker 3: know about that.
Speaker 10: I think that for now, generative AI is really more
Speaker 10: about the mass market and the everyday device. I think
Speaker 10: for Vision Pro, I'm sure that we'll get there.
Speaker 3: I don't know if.
Speaker 10: It's necessarily the priority today, I think is more about
Speaker 10: what we use every day, and I think that historically
Speaker 10: that's what Apple has always done, is you know, taking
Speaker 10: features or taking moments, and you know, it's example of things,
Speaker 10: even from a technology perspective, that ours are brought to
Speaker 10: market and really made that a mass market moment. And
Speaker 10: that's what I'm expecting today.
Speaker 3: Apparently in a milanacy, President Principal Anna say a creative
Speaker 3: strategy waiting the all important WWDC kickoff. We thank you
Speaker 3: for front running it for us. Meanwhile, time to go
Speaker 3: to talking tech now. First that Microsoft says a core
Speaker 3: feature in its AI branded PCs will be turned off
Speaker 3: when it ships. The feature is actually called Recall and
Speaker 3: it creates a record of everything users to do on
Speaker 3: the PC now. The tool set off alarm bells for
Speaker 3: security researchers, saying it could be used by bad actors
Speaker 3: to access and scoop up data and information. Xbox announced
Speaker 3: new entries to its popular gaming franchises and a showcase
Speaker 3: over the weekend. New titles for Doom and Gears, a
Speaker 3: war series, were announced. The presentation comes amid layoffs of,
Speaker 3: of course, nineteen hundred employees in its gaming division. Earlier
Speaker 3: this year, Volvo car is recalling nearly seventy two thousand
Speaker 3: of its fully electric Ex thirty due to a software issue.
Speaker 3: Now the car may have an error in their center
Speaker 3: screen that causes a speedometer to go into testmo basically
Speaker 3: when there started. According to Volvo, no other models were
Speaker 3: affected and there have been no related accidents or injuries reported.
Speaker 3: Coming up, Media veteran Jeffrey Hasenberg raises nearly half a
Speaker 3: billion dollars for his new venture fund based in cybersecurity.
Speaker 3: We're going to discuss with him and colleague next. Talking
Speaker 3: of content creation. This is perhaps one of the messiest
Speaker 3: deals of all time, but it feels as though Paramount
Speaker 3: Global currently moving just down about a percentage point. A
Speaker 3: former media executive Edgar Bronfman, you know, and from Warner
Speaker 3: muse from the liquor giant Seagram. He's backed by private
Speaker 3: equity firm Bane Capital, potentially to be buying National At
Speaker 3: the overall parent company of Sherry Redstone instead maybe of
Speaker 3: sky Dance. This is all about Egg of Rothman having
Speaker 3: a two billion plus bid for the company that can
Speaker 3: controls Paramount.
Speaker 1: This.
Speaker 3: We continue to watch National Amusements, of course, the key
Speaker 3: one that they would be looking to purchase this Bloomberg
Speaker 3: technology wonder Co. It's the investment firm and media veteran
Speaker 3: Jeffreykatzenberg and tech entrepreneur Sujai Jasua has just announced that
Speaker 3: it's raised nearly half a billion dollars for its latest
Speaker 3: venture fund. We're very pleased to welcome to VC Spotlight
Speaker 3: both founding partners, Jeffrey and Sujai. Welcome, gentlemen. And while
Speaker 3: I want to ask you Suji first, the perspective is
Speaker 3: on what security most importantly, cyber threats or artificial intelligence.
Speaker 3: Where is your sweet spot in the moments?
Speaker 7: S Jack, Well, We're I mean you actually covered it all.
Speaker 7: That's a sweet spot.
Speaker 3: Well, good, okay, Mike.
Speaker 7: What we're trying to do is keep you and your
Speaker 7: family safe online. You know, we start with the consumer.
Speaker 7: That's obviously where Jeffrey's background and my background come from
Speaker 7: is thinking about how to apply new technologies to solve problems.
Speaker 2: For each of us at home and at work.
Speaker 7: And when we think about cybersecurity, one of the crazier
Speaker 7: things of the past couple decades is you can't think
Speaker 7: of a great innovation that is designed to protect all
Speaker 7: of us or our children or elderly relatives, and that
Speaker 7: seems shocking and terrible to us, and so we decided
Speaker 7: to go try to solve that.
Speaker 3: Truffle hunting is how you describe what you're going to
Speaker 3: go about and do. Jeffrey talk us through how that
Speaker 3: is what a small amount of investments but more integral,
Speaker 3: more important, more impactful.
Speaker 11: Well, I think you know that's the opportunity today. You know,
Speaker 11: there's so much incredible innovation going on, and we have
Speaker 11: found for us staying quite focused picking a handful of
Speaker 11: qual it five to seven investments each year, as well
Speaker 11: as starting a company ourselves, we'd like to be builders
Speaker 11: as well as investors, and so doing those things in
Speaker 11: parallel has proved to be you know, quite quite successful
Speaker 11: and quite.
Speaker 2: Rewarding for us.
Speaker 11: We all started as builders, we have founded companies ourselves,
Speaker 11: and we want to do both those things in parallel.
Speaker 3: So, Joy, I'm interested in, for example, as we came
Speaker 3: out from WWDC or about to anticipate Apple's latest unveiling,
Speaker 3: one of your big bets is one pass word. We're
Speaker 3: looking at it now, but Apple is looking to take
Speaker 3: that on with its own homegrown ability for storing your passwords.
Speaker 3: How much do you worry about competition in this cyber area?
Speaker 7: So I used to worry a lot about competition fifteen
Speaker 7: years ago from big tech platforms and at Dropbox in
Speaker 7: particular Steve Jobs last.
Speaker 2: Speech he said, he was you know what do you
Speaker 2: use right now?
Speaker 7: Use your Dropbox. I'm going to change it all with iCloud,
Speaker 7: and obviously dropbos did just find despite that competition. My
Speaker 7: view is that the best product ultimately wins, and in
Speaker 7: the case of one pass where they've built an amazing
Speaker 7: solution for helping you cross platform across Apple devices, Android devices,
Speaker 7: Microsoft devices, and so as long as you stay focused
Speaker 7: on the customer, you'll be fine as an entrepreneur.
Speaker 3: Jeffrey, it's a tough question to ask, but of course
Speaker 3: many would associate of late you'll work with Quibi, and
Speaker 3: of course that was a big bet and a building
Speaker 3: bet and one that didn't pay off. Content is really
Speaker 3: tough right now. But how has that been tough to
Speaker 3: explain to the LPs And he brought over.
Speaker 11: Well, first of all, I know feels to you like
Speaker 11: it was yesterday. In fact it was four years ago.
Speaker 11: It was a moonshot. That's part of being an entrepreneur.
Speaker 11: It's also part of being an investor. You know, there
Speaker 11: are it's a balance of the type of risk reward
Speaker 11: you take. Certainly that was a risk and our investors
Speaker 11: understood it. But digital media in general actually has turned
Speaker 11: out to be a very very challenged area, both for
Speaker 11: creators and for investors unless you own the control of
Speaker 11: the platform itself. So we actually four years ago pivoted
Speaker 11: out of digital media. We have no investments today in
Speaker 11: digital media.
Speaker 2: We continue to look at.
Speaker 11: It because, honestly, as you were talking about in your
Speaker 11: earlier segments, with the introduction of AI, there is going
Speaker 11: to be a slew of new types of opportunities, new
Speaker 11: types of content. I think ultimately a new and innovative
Speaker 11: platform is coming our way sooner rather than later, and
Speaker 11: we certainly will like to want to be on the
Speaker 11: forefront of that. But as we see here today, that
Speaker 11: opportunity hasn't.
Speaker 2: Presented itself yet.
Speaker 11: And again more importantly, for the last three or four years,
Speaker 11: our focus is one hundred percent been in tech and
Speaker 11: as a SJ outline to you, particularly consumer.
Speaker 3: Techsjat how has the lp cohort been willing to jump
Speaker 3: onto this new fundraise. Have you got new LPs that
Speaker 3: come in to this latest fund.
Speaker 7: Yeah, the answer is it's virtually entirely new from an
Speaker 7: LP standpoint because Wondercoe it was originally set up as
Speaker 7: a holding company, and so these are our first traditional
Speaker 7: LPGP funds. And what I would say is that several
Speaker 7: of our strongest supporters in the holding company again became
Speaker 7: our big supporters in the new funds. But as you know,
Speaker 7: it's been a difficult fundraising environment and we're thrilled with
Speaker 7: the new partners that we have, but we also understand
Speaker 7: that we're setting out to build these relationship with folks
Speaker 7: that didn't come in for the long haul and hope
Speaker 7: to get them in the future.
Speaker 3: So, Joy, I'm going to ask you another one just
Speaker 3: on exits therefore, because that's obviously what the LPs and
Speaker 3: what you want to be seeing. It's interesting that Figma
Speaker 3: was one of your big bets and that exit sort
Speaker 3: of unwound due to regulatory issues for Adobe and Figma.
Speaker 3: You've also done an exit, interesting one where you've tied
Speaker 3: up two of your own home built companies together and
Speaker 3: we're seeing the likes of Aura Bipango. That was all
Speaker 3: the way back in twenty twenty. What is the direction
Speaker 3: of travel for exits? Is it M and A? Is it?
Speaker 3: Is it IPOs?
Speaker 7: Yeah, when you build a great company, you'd like to
Speaker 7: see it go public. In an ideal situation, you want
Speaker 7: these companies to run for many decades. While exits are
Speaker 7: always top of mind in a traditional fund, the best
Speaker 7: technology companies get built over multiple decades.
Speaker 2: And from our.
Speaker 7: Standpoint, our ambition and goals are to build great technology companies,
Speaker 7: So we don't look to the exit. Primarily, we look
Speaker 7: to building a great company, and if the exit comes
Speaker 7: in a near term, that's fine, but our ambition is
Speaker 7: to build them for the long haul.
Speaker 3: Jeffrey, We of course did introduce you as the fact
Speaker 3: that everyone knows you from your media expertise. You're saying
Speaker 3: the moment, it's very hard in the digital media space.
Speaker 3: What is it from your mind? Is going on with Paramount?
Speaker 3: We were just breaking to the Wall Street Journal is
Speaker 3: articulating that Edgar Bronfman is de eying a two to
Speaker 3: two and a half billion bill dollar bid for National Amusements.
Speaker 3: I mean, is there any hope for em and A
Speaker 3: within the content creation space? Will Paramount get a deal
Speaker 3: that is a good one for investors, of.
Speaker 2: Course it will.
Speaker 11: Those assets are singular, they're unique, they're generational, and the
Speaker 11: reason why there is so much focus and attention around
Speaker 11: them is because of scarcity. And so you know, right
Speaker 11: now today it's a pretty complicated set of circumstances. There
Speaker 11: you have in Shari Redstone a controlling shareholder. They've actually
Speaker 11: had obviously a very difficult time over this last year
Speaker 11: or two. But make no mistake about it, these are
Speaker 11: still very very uh strong assets, and maybe they need
Speaker 11: to be reconfigured and redeployed in a you know, new
Speaker 11: and and maybe somewhat innovative way. But foundationally, the reason
Speaker 11: there is as much interest in them as you know,
Speaker 11: there's there's good reason for it.
Speaker 3: Wow, you'll know, having been of course with well Disney Studios,
Speaker 3: having built over what was happening with DreamWorks, and your
Speaker 3: experience continuing the content and now consumer cyberspace. Jeffrey catsenough
Speaker 3: with us, of course.
Speaker 2: I will tell it, and I will tell you.
Speaker 11: I just literally I went to an early breakfast, ran
Speaker 11: into Bob Iger, JEFFS Shell, and Brian Robbins all in
Speaker 11: one room.
Speaker 2: At one time.
Speaker 11: The current president of Paramount, jeff Shell who's on Redbird,
Speaker 11: and Bob Iger who's watching it all.
Speaker 3: That feels like a movie score r a morning. Yeah,
Speaker 3: next time invite us to that breakfast. We'd love to come.
Speaker 3: Jeffrey is great to have some time with you. Thank you,
Speaker 3: so Ja Jasa of Wonderco. We appreciate both of you
Speaker 3: spending some time with us today. Apple Intelligence, What will
Speaker 3: it look like? Feel like? What will we be announced
Speaker 3: at WWDC Lumos Jackie Doavlas is live from Covatino and look,
Speaker 3: we're almost an hour a little over away from today's
Speaker 3: event kickoff. What are you expecting in terms of feat
Speaker 3: just to be announced?
Speaker 4: Well, the good thing is we have a lot together.
Speaker 4: From from Mark German's reporting, the key thing will be
Speaker 4: Apple Intelligence. That's the new AI system it plans to
Speaker 4: roll out in the iPhone, iPad and macOS system, which
Speaker 4: will get an upgrade. Now, the real key will be
Speaker 4: the AI features embedded inside. Let's drill down into some
Speaker 4: of those, because that's what people really want to know,
Speaker 4: what will show up on our devices. A big part
Speaker 4: of this push will be summarization. Think summarizing web articles,
Speaker 4: other web pages, your text messages, making it easier for
Speaker 4: you to dissect the information that you have to make
Speaker 4: a few clicks on your phone to actually get to think. Also,
Speaker 4: your mail app auto reply, the kind of thing that
Speaker 4: Gmail already has, but Apple's creating its own version of this.
Speaker 4: We'll also get voice memo transcription that will come in
Speaker 4: handy for me, Caroline, I.
Speaker 3: Use that a lot.
Speaker 4: And so these are just a few of the AI
Speaker 4: features we'll expect to see, but of course it's all
Speaker 4: part of a broader AI vision. Tim Cooch will address
Speaker 4: at ten am Pacific one pm Eastern.
Speaker 3: I'm partnerships, an Open AI partnership. Perhaps that's the.
Speaker 4: Big one who can forget because Apple can't do this
Speaker 4: on their own. They need the help of open Ai,
Speaker 4: which has the powerful chat GPT technology. We'll see some
Speaker 4: kind of chatbot version also in Apple's new upgrade. But
Speaker 4: of course the question is will this really revamp SERI
Speaker 4: in the way that it really needs to. Kind of
Speaker 4: been a disappointment since it's rollout nearly a decade ago,
Speaker 4: And so here we'll have open Ai kind of taking
Speaker 4: the lead.
Speaker 3: In that way.
Speaker 4: Apple's Apple Intelligence will also have Apple's own AI technology.
Speaker 4: But here we'll wait to see exactly how this partnership
Speaker 4: will unfold.
Speaker 3: Jackie Devlos is going to be bringing it to us
Speaker 3: throughout the next hour or so. We really appreciate it. Now.
Speaker 3: That does it for this edition of bloombg Technology. Stay
Speaker 3: tuned for all that's going to come out of Coopatino.
Speaker 3: But if you miss it, go check out our podcast
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Speaker 3: this is bloombgg Technology.