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Speaker 1: From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed.

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Speaker 3: Ludlove live from San Francisco. This is Bloomberg Technology coming

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Speaker 3: up full markets, courage ahead as stocks push higher amid

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Speaker 3: fading recession fears, plus Warner Brothers plunges after a nine

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Speaker 3: point one billion dollar right down and after spending nearly

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Speaker 3: sixty days in space, NASA is working on a contingency

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Speaker 3: plan to bring the star Liner crew home. Let's get

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Speaker 3: right to financial markets, and I'm looking at them as

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Speaker 3: that one hundred on a four day basis, it's interesting

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Speaker 3: what's happening in the long run. That's actually Warner Brothers Discovery.

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Speaker 3: So let's go there. Then that's a nice story for

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Speaker 3: the day. We're down nine point three percent, nine point

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Speaker 3: four percent. Look, the story is really clear. Nine point

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Speaker 3: one billion dollar write down on the legacy TV networks.

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Speaker 3: And the issue with that, or the story with that,

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Speaker 3: is traditional linear TV is not valued as it was

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Speaker 3: when Warner Brothers merged with Discovery because everyone's gone to streaming.

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Speaker 3: Let's bring in Bloomberg's Hannah Miller, who's been covering the

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Speaker 3: story and Hannah, it's a big number, it's overshadowed earnings

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Speaker 3: and things aren't going particularly well. Give me the specifics

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Speaker 3: of the write down and the reasons behind it. Yeah.

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Speaker 4: So, basically, what CEO David Zaslav discussed on the earnings

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Speaker 4: car was that things have drastically changed in the media landscape.

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Speaker 4: Valuations are different, market conditions are different, and this is

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Speaker 4: a more realistic value for their traditional TV networks, and

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Speaker 4: this is a signal to other major media companies to

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Speaker 4: maybe take a look at their own traditional TV holdings

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Speaker 4: and see if they too are of valued.

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Speaker 3: I want to really focus on the technology story within it,

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Speaker 3: which I think is everyone went to streaming and so

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Speaker 3: they were left with properties that just weren't worth what

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Speaker 3: they were at the time. The other issue for Warner

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Speaker 3: Brothers Discovery, of course Hannah has been now down eleven

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Speaker 3: percent in the session, is what happened with sports rights

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Speaker 3: and MBA. That was a point of discussion. Just update

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Speaker 3: us on what's going on.

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Speaker 4: Yeah, So what happened with Warner Brothers was that they

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Speaker 4: missed out on a seventy six billion dollar deal to

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Speaker 4: get media rights for NBA games starting for the twenty

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Speaker 4: twenty five to twenty twenty sixth season. They are now

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Speaker 4: suing the NBA alleging breach of contract. That lawsuit was

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Speaker 4: mentioned briefly during the call, with Zaslov saying that they

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Speaker 4: are confident in their position and it's in the hands

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Speaker 4: of lawyers right now.

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Speaker 3: Bloomberg's Hannah Miller a really interesting story, big market move.

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Speaker 3: Thank you for keeving us up to date on it.

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Speaker 3: Now let's get back to financial markets and bring in

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Speaker 3: Sarah ketro Causeway, CEO, Fundamental Portfolio Manager. About forty nine

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Speaker 3: billion dollars of assets under management, and we're trying to

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Speaker 3: work out in aggregate what's going on. And as that

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Speaker 3: one hundred has been an interesting index to track this week,

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Speaker 3: the sort of anxiety of Monday faded on a weekly basis.

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Speaker 3: We're still soft to eight tens to one percent. You've

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Speaker 3: got concerns about growth. Then we've got some economic data

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Speaker 3: this morning that makes us feel that maybe recession risks

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Speaker 3: are fading and we have a clearer picture on the FED.

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Speaker 3: When you woke up this morning, Sarah, what was your

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Speaker 3: picture of financial markets?

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Speaker 2: Well, it was about the same as it was yesterday,

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Speaker 2: which is reasonably optimistic and that's a function of again

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Speaker 2: so much liquidity added to the US and global economies during, during,

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Speaker 2: and after the pandemic, and much of this is still

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Speaker 2: working through the system. But we have still a very

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Speaker 2: strong consumer in the US. It's labors holding up, wages

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Speaker 2: are holding up. There isn't no reason to panic, even

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Speaker 2: though markets do that from time to time. So we're

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Speaker 2: looking forward to some good earnings from our companies and

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Speaker 2: for those, for example in technology where they depend on

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Speaker 2: industrial production to be well placed.

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Speaker 3: Thank you for bringing it back to technology. This is

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Speaker 3: Bloomberg Technology after all. I mean, it's interesting you go

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Speaker 3: to earnings. The story was really clear from the hyperscalis

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Speaker 3: in particular right the commitment to capital expenditures for AI infrastructure.

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Speaker 3: Maybe in Microsoft's case, you learn the lesson that you

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Speaker 3: just don't miss street estimates in this environment. How selective

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Speaker 3: are you being within that group of hyperscalers or other

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Speaker 3: names that we're so focused on around the AI story.

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Speaker 2: Well, the AI story is like and this has been

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Speaker 2: well encapsulated on our website. Bar Our Workflolow, manager for Telecommunications,

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Speaker 2: Media and Technology, Brian Show and that there are three

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Speaker 2: cycles and this first one building is all about the

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Speaker 2: building basic building blocks, meeting semiconductors, and you certainly saw

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Speaker 2: that n Nvidia boom, but the memory semiconductor stocks have

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Speaker 2: had a big run too, as they should, they've had

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Speaker 2: to pull back.

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Speaker 5: They're very interesting.

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Speaker 2: And then to your point about the hyperscalers, they're absolutely

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Speaker 2: critical in the next phase, which is delivery, so we

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Speaker 2: need them to build out the cloud infrastructure. And they're

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Speaker 2: also this is true of the ones that we as

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Speaker 2: value investors prefer, like Alphabet and Meta. They're benefiting from

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Speaker 2: their use of AI as they get more customer engagement

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Speaker 2: and a hyperscaler like Alphabet. Not only do they have

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Speaker 2: tremendous they can look forward to in phase three the deployment.

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Speaker 5: Getting enterprises on cloud.

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Speaker 2: They enterprise must have massive cloud access because they have

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Speaker 2: so much compute needs with the data.

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Speaker 3: Monday was a global market event in the sense that

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Speaker 3: it started in the Asian session, went to Europe and

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Speaker 3: then to the United States, but it also shone a

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Speaker 3: light on Taiwan and Korea those markets, and when I

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Speaker 3: was looking at your holding, Samsung really jumps out. You

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Speaker 3: have a particularly strong view on Samsung. Explain the thesis

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Speaker 3: there and where it sits in your holdings.

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Speaker 2: Well, you're correct, and Samsung is one of our in

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Speaker 2: both our International and Global fund, one of our largest holdings.

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Speaker 2: And the reason why is it Samsung trades it very

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Speaker 2: reasonable multiples. It's trading somewhere around book value. Either could

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Speaker 2: get to one and a half times book. But they're

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Speaker 2: a major player in memory semiconductors and the need for

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Speaker 2: memory as AI compute expands goes up multifold, so memory

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Speaker 2: demand rising Inexora belief, which is great for Samsung. In

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Speaker 2: d RAM they compete with Skae, Heinex and mic and

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Speaker 2: Samsung's on the CUSP we think of a major breakthrough

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Speaker 2: and high bandwid memory, so they will be able to

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Speaker 2: provide the more advanced memory chips. And all this emphasis

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Speaker 2: on high bend with put some pressure on regular DRAMs,

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Speaker 2: so there's some shortages.

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Speaker 5: We'd like to see this.

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Speaker 2: So the supply demand balance is very much in favor

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Speaker 2: of less supply and more demand.

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Speaker 5: Good for pricing. So Samsung's well placed their plus in.

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Speaker 2: This phase three of delivery they've got or in phase

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Speaker 2: two in deployment. There they are with mobile phones that'll

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Speaker 2: be AI enabled, so those Galaxy phones should fly off

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Speaker 2: the shelf. They have other consumer electronics, they're in foundry

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Speaker 2: and display, like Samsung has it all.

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Speaker 3: It's really interesting to hear you outline that we've done

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Speaker 3: quite a lot on the show about high bandwidth memory

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Speaker 3: and that if there's going to be this ramp and

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Speaker 3: expansion of AI accelerator driven growth, you have to have

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Speaker 3: the corresponding high bandwidth memory. But we've not discussed as

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Speaker 3: much with the investor base. Sticking with chips, you also

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Speaker 3: are interested in some of the more cyclical areas automotive industrial.

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Speaker 3: I look at some of the names that are outside

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Speaker 3: the United States, Infinian renaissance over in Japan. Why is

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Speaker 3: it that you like that area?

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Speaker 5: Well, automotives.

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Speaker 2: Maybe there's been a slowing of auto sales, but the

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Speaker 2: SAR doesn't matter as much as the content That matters.

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Speaker 2: Chip content, and these automotive related semiconductors and Samsung and

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Speaker 2: rhanasas Samsung, German NASAs Japan are experts.

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Speaker 1: In that area.

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Speaker 5: So we're expecting them.

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Speaker 2: To see again content growth overwhelm or be more important

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Speaker 2: than overall auto sales borrowing a recession, and we're not

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Speaker 2: expecting one anytime soon. But they're also very strong in

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Speaker 2: industrial chips and to see that in industrial automation and

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Speaker 2: then think about data center and the need for power regulation.

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Speaker 2: They're both really well placed there and those stocks have

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Speaker 2: fallen some thirty plus percent over the last one month.

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Speaker 2: In the case is Rhanasus, so the value is there

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Speaker 2: as well, so you get the under valuation and the

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Speaker 2: growth upside. It's a great combination.

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Speaker 3: Sarah Ketterer. Of course, where it's really good to have

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Speaker 3: you here on Bloomberg Technology. Thank you for joining us

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Speaker 3: and that focus on chips in particular. Okay, coming up

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Speaker 3: on the show, we're going to be joined by the

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Speaker 3: next Door CEO, Nivtalia on the company's earnings, but also

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Speaker 3: this overhaul of Nextdoor the social network. Next that's next. Next?

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Speaker 3: What who shares of Bumble? Have you seen?

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Speaker 2: This?

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Speaker 3: Dating is over? The stock is down the most on record,

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Speaker 3: are a really severe cut to its outlook. There are

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Speaker 3: some specific or idiosyncratic factors relating to Bumble and its

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Speaker 3: properties within that, but it's a pretty grim look for

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Speaker 3: the data environment or apt base dating and you look

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Speaker 3: at the stop year to date down more than sixty percent.

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Speaker 3: It's a name that will continue to track. This is

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Speaker 3: Bloomberg Technology. Okay. Next doors second quarter revenue beat analyst estimates,

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Speaker 3: and the company projected stronger than expected sales growth, pointing

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Speaker 3: to improvements in the company's AD technology as a key

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Speaker 3: driver of sales, and it's CEO announced plans for a

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Speaker 3: quote complete transformation of Nextdoor's core social network. Delighted to

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Speaker 3: say that the CEO near rev Talia, is here with

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Speaker 3: us on set in San Francisco. This is interesting. Let's

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Speaker 3: go through the financial stuff and then we'll get into

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Speaker 3: the platform itself. It's kind of high single digits growth

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Speaker 3: on the user base side, and then you talked a

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Speaker 3: lot about where the AD growth is, but just the

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Speaker 3: fact is behind both of.

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Speaker 6: Pieces of growth.

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Speaker 3: Sure, why is that happening?

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Speaker 7: Yeah, thank you for having me, by the way, it's

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Speaker 7: great to be here with you, Ed, And let me

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Speaker 7: just go through the numbers very quickly, because we had

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Speaker 7: a very solid and productive quarter. So on the revenue side,

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Speaker 7: we grew eleven percent year over year, so the first

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Speaker 7: time in a few quarters that we're returning to double

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Speaker 7: digit guests that.

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Speaker 6: We feel really good about.

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Speaker 7: On the user side, over forty five million weekly active users.

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Speaker 7: That represents eight percent year over year growth and then

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Speaker 7: on the bottom line a loss of six million dollars,

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Speaker 7: which represents twenty three points of adjustitebat margin improvement. So

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Speaker 7: on all three of those vectors, we feel very good

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Speaker 7: about our performance in Q two, and we also announced

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Speaker 7: that we raised guidance for the rest of the year.

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Speaker 7: So solid execution and we're looking towards the future now

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Speaker 7: for the real potential of the company.

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Speaker 3: So let's define complete transformation. You know there's been change

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Speaker 3: a next Door, a change with you, A.

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Speaker 7: Complete transformation of leadership.

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Speaker 3: Yes, complete transformation leadership in a return, But what is

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Speaker 3: it that you think that the actual platform will get

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Speaker 3: to advertising? The actual platform needs to be different or

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Speaker 3: do differently.

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Speaker 7: Nextdoor has an amazing opportunity. We want to be the

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Speaker 7: essential neighborhood network because we think local is so core

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Speaker 7: to everyone's life. It's so important that we have rich

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Speaker 7: local lives, and that is the opportunity for Nextdoor as

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Speaker 7: a consumer internet company. But our potential is not reflected

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Speaker 7: today in the quality of our product. So when we

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Speaker 7: talk about complete transformation, we're talking about making the product

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Speaker 7: so good that every time our users and advertisers visit.

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Speaker 6: They're delighted.

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Speaker 7: We have an extremely high bar, very high expectations, and

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Speaker 7: so it seems a little over the top to say

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Speaker 7: complete transformation. But we're setting our sites extremely high because

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Speaker 7: we think we can reach that potential.

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Speaker 3: There will be loads of people watching the program bloom,

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Speaker 3: both technology audience, who who might be on next Door.

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Speaker 3: My wife and I bought our first home in March

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Speaker 3: of this year.

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Speaker 7: Ninety million verified neighbors.

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Speaker 3: But that's my point that we were used for a

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Speaker 3: specific neighborhood and we wanted to learn about what was

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Speaker 3: going on. That makes sense to go to next door,

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Speaker 3: But I still look at scale, you know, compared to

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Speaker 3: other social media platforms, quite small. How do you take

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Speaker 3: it to another order of magnitude greater bring in people

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Speaker 3: for the first time.

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Speaker 7: It's a great question. So Nextdoor has been around for

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Speaker 7: fourteen years and as I mentioned, almost ninety five million

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Speaker 7: verified neighbors in eleven countries around the world, So yes,

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Speaker 7: we have some good scale. Primarily Nextdoor has been known

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Speaker 7: for utility, so we.

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Speaker 6: Call ourselves a social media.

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Speaker 7: Product, but it's really about solving your everyday problems around

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Speaker 7: local You have a home, it's one of your most

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Speaker 7: important financial assets, and you want to protect that you

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Speaker 7: want to make sure that you feel safe, you want

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Speaker 7: to make sure that you're happy at home, and so

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Speaker 7: Nextdoor primarily has been used around things like I need

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Speaker 7: a babysitter, Okay, I need a plumber. I want to

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Speaker 7: make sure that my home is kept up to date.

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Speaker 7: I want to feel safe in a crisis, whether it's

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Speaker 7: natural disaster, whether there's a spate of crime, I've lost

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Speaker 7: a pet. These are really important use cases that people

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Speaker 7: rely on nextdoor for every single day. But we typically

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Speaker 7: thought we talk about weekly active users. Now the other

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Speaker 7: social media services that you're talking about, they typically talk.

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Speaker 6: About daily active uses.

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Speaker 7: So the question for us is what can we do

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Speaker 7: to ensure that we are delivering value to our users

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Speaker 7: on a daily basis, not just lost pets and service

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Speaker 7: providers and times of crisis, which are absolutely indispensable and

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Speaker 7: Nextdoor can be a lifeline, but on a daily basis,

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Speaker 7: how can we make your local life better.

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Speaker 3: That's the part of the story being investment in ad

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Speaker 3: technology sort of improving the value against that use best

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Speaker 3: ne rev Tellier, next Door CEO and co founder, thank

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Speaker 3: you so much. Let's stick with earnings. Retail trading Darling

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Speaker 3: Robin Hood extended its growth into the second quarter despite

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Speaker 3: a drop off in crypto activity. The company reporting five

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Speaker 3: billion dollars in net new deposits as it expands it's

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Speaker 3: products pipeline. Robin Hood, co founder and CEO of lad Tenev,

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Speaker 3: joined Bloomberg Open interest earlier this morning. Listen to this.

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Speaker 8: We shared in the earnings call that July volumes were

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Speaker 8: about twenty percent higher than what we reported across June.

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Speaker 8: August has continued very much the same one billion in

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Speaker 8: net deposits in the first week. About half a billion

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Speaker 8: of that came this Monday, and the overnight session for

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Speaker 8: twenty four hour market on Sunday night was about three

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Speaker 8: x a typical day. So twenty four hour markets have

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Speaker 8: just been ripping and customers tend to be buying the dip.

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Speaker 8: They're more buyers than sellers, which we think is a

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Speaker 8: really good sign for the health of the retail market.

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Speaker 9: We saw on Monday morning vlad as the market's kind

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Speaker 9: of tanked and there was a lot of fear out there.

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Speaker 9: Some of the more traditional, your more traditional competitors have

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Speaker 9: problems with logins, and obviously it makes customers very angry,

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Speaker 9: especially if they want to get in there and buy

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Speaker 9: the dip when it's at five percent and it could

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Speaker 9: lose opportunity any minute that goes by. How did your

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Speaker 9: technology hold up during during those those shutdowns on other platforms.

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Speaker 8: Our technology is strong. You know, We've made a lot

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Speaker 8: of investments. We were fortunate not to have any issues

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Speaker 8: of a significant nature when all of the competitors were

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Speaker 8: down and a lot of customers were actually looking to

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Speaker 8: Robinhood and we've we've had challenges in the past, no

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Speaker 8: doubt about that, but that's hardened the company, hardened the

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Speaker 8: infrastructure and now when we see high volumes, were ready

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Speaker 8: for it. So we were happy to see customers moving

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Speaker 8: to Robinhood and kind of pointing to us as one

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Speaker 8: of the most reliable platforms doing during this recent bout

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Speaker 8: of volatility.

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Speaker 3: That was robin Hood. See I've lad Now coming up

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Speaker 3: from the show, Joe ben Bevitt, CEO of Joby, joins

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Speaker 3: us to discuss ev toll expansion in that company's earnings.

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Speaker 3: That conversation coming up next. This is Bloomberg Technology time

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Speaker 3: for Talking Tech and first stup defense tech startup and

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Speaker 3: a reil has raised one point five billion dollars in

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Speaker 3: a new funding round, valuing the company at fourteen billion dollars.

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Speaker 3: Andreel says it plans to spend hundreds of millions of

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Speaker 3: dollars on a new facility to ramp up manufacturing of rockets,

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Speaker 3: underwater vehicles, and other autonomous weapons. Plus, Microsoft and Palenteer

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Speaker 3: are set to combine their government cloud computing and AI

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Speaker 3: tools in an effort to sell software to US defense

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Speaker 3: and intelligence agencies. As part of the agreement, Pananteer will

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Speaker 3: integrate its products with microshofts Azure cloud services and allows

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Speaker 3: open AI implementation into tools that are meant for confidential use.

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Speaker 3: And Meta sold ten point five billion dollars of investment

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Speaker 3: grade bonds, boosting the company's cash pile as it spends

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Speaker 3: heavily on AI. According to Bloomberg Data, the deal is

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Speaker 3: the company's largest ever debt sale to date. Meta made

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Speaker 3: its bond debut back in twenty twenty two, selling ten

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Speaker 3: billion dollars. All right, let's stick with earnings. Joby reported

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Speaker 3: after the closing bell on Wednesday, there's some important news

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Speaker 3: about Dubai. I'm delighted to bring in Joe ben Bevitt,

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Speaker 3: CEO of Joby, and I just want to get right

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Speaker 3: to that Dubai project. You and I have spoken so

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Speaker 3: many times over the years where I ask you, when

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Speaker 3: are we going to see a joby fly and where,

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Speaker 3: and it seems like you're closer to answering that absolutely.

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Speaker 10: First, thank you so much for inviting me. I'm here

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Speaker 10: in our flight test facility in Marina, California. It's amazing

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Speaker 10: to be with you on Dubai. We're so excited. We're

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Speaker 10: sprinting to the across the line where we've got incredible support,

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Speaker 10: a six year exclusive in Dubai to provide Eric taxi service,

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Speaker 10: and our target is to launch that service by the

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Speaker 10: end of next year. Really really pleased with the progress

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Speaker 10: that we're making, and again, thank you for being having

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Speaker 10: us today.

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Speaker 3: Joe Ben. You know I'm really interested in the business

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Speaker 3: model long term. You know that I also take a

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Speaker 3: microscope to your financials, your losses and sort of cash

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Speaker 3: burner at pace with the streets expectations. Just explain the

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Speaker 3: timeline of how that changes and when you start becoming

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Speaker 3: meaningfully revenue generating.

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Speaker 6: Yeah, so thank you.

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Speaker 10: We are executing exactly to plan, and we have a

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Speaker 10: very rigorous financial discipline. We are methodically ramping our production.

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Speaker 10: We just announced that we had rolled the third aircraft

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Speaker 10: off our pilot manufacturing line, and we have the fourth

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Speaker 10: and fifth coming along quickly behind. We're going to have

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Speaker 10: four aircraft in our flight test program as we're driving certification,

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Speaker 10: and we've completed the first three stages of certification with

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Speaker 10: the FA and we're now working on the fourth stage

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Speaker 10: where we've announced that we're thirty seven percent complete there,

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Speaker 10: so as we move into commercialization, we can begin to

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Speaker 10: generate meaningful revenues and reduced the cash burn on the company.

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Speaker 6: So very very pleased with progress.

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Speaker 3: Joe Ben, Is America moving fast enough on EV toll America?

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Speaker 10: Absolutely, We're We have incredible bipartisan support in Washington, d C.

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Speaker 10: And this last year we were invited to New York

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Speaker 10: where we were able to fly our air taxi in

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Speaker 10: New York City from the Wall Street Helipad.

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Speaker 6: It was, you know, dream come true for me.

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Speaker 10: I've been working on this for many, many years and

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Speaker 10: seeing the age of clean, quiet, emissions, free propuls aircraft

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Speaker 10: being able to fly in a city like New York

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Speaker 10: is really exciting. We have an incredible partnership with Delta

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Speaker 10: Airlines and we're working to build with the port authority

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Speaker 10: to build best in class infrastructure at New York and

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Speaker 10: LaGuardia or New York JFK and Loguardia.

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Speaker 3: So, Joe Ben, when does that happen? The ability to

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Speaker 3: take one of your evy toll from Wall Street to

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Speaker 3: an airport in the real.

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Speaker 6: World, it's coming very soon.

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Speaker 10: Again, we're making great progress with the port authority on

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Speaker 10: the permitting of those take off and landing locations connected

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Speaker 10: to the Delta hubs. You can get off your Delta

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Speaker 10: flight and onto a Jobe flight very seamlessly, and you

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Speaker 10: can be in a matter of minutes into Manhattan. So

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Speaker 10: we think this is a really exciting opportunity and it's

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Speaker 10: coming very very soon, really paced by the speed at

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Speaker 10: which we can get that infrastructure built.

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Speaker 3: Joe Ben Bevitt CEO, Joe be great to have you

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Speaker 3: back here on Bloomberg Technology. Thank you. Now. Coming up

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Speaker 3: on the show, we are joined by Andrew Baielecki, the

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Speaker 3: co founder and CEO of Klavio, to discuss that company's earnings,

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Speaker 3: which were also released after the closing bell on Wednesday.

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Speaker 3: This is Bloomberg Technology. Welcome back to Bloombag Technology. Ed

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Speaker 3: Ludlow in San Francisco. I want to show you a

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Speaker 3: chart that maybe you didn't know you needed. This shows

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Speaker 3: normalized performance going back to nineteen ninety nine, with Nvidia

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Speaker 3: going in one direction in this session and Monster Beverage Corp.

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Speaker 3: Going in the other direction. The point being that Innvidia

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Speaker 3: has once again overtaken Monster is the best performing stock

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Speaker 3: on the S and P five hundred this century, which

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Speaker 3: is an important data point. But I'd also say this

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Speaker 3: courtesy of Dan Curtis, our terminal data editor, that think

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Speaker 3: about Jensen One, the CEO of Nvidia. He has a

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Speaker 3: three point five percent stake in Nvidia. He could buy

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Speaker 3: all of Monster Beverage Corp. And every single share and

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Speaker 3: still have enough money left over to go out and

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Speaker 3: buy another chip company, or even if he wanted Lululemon.

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Speaker 3: Some size and scope of the scale of Nvidia, not

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Speaker 3: just its performance on a percentage basis, but how it's

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Speaker 3: overtaken some of the wildest stock stories we've seen, which

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Speaker 3: one of them was until this session, Monster Beverage. Let's

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Speaker 3: turn back to the earning story. Klaviy O, the software company,

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Speaker 3: reported earnings after the closing bell on Wednesday. Co founder

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Speaker 3: and CEO Andrew Bieleeki joins us now for more and

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Speaker 3: my goodness, Andrew, look at your stock up twenty seven

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Speaker 3: point two five percent, thirty five percent growth on pretty

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Speaker 3: decent customer growth. Where would you like to start. This

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Speaker 3: is the best day for your stock since you went public.

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Speaker 11: Yeah, well, thanks for having us, and thanks to Clavio's

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Speaker 11: around the world for a great quarter, really delivering for

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Speaker 11: our customers and partners. You know, I'm really excited about

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Speaker 11: the one hundred and fifty thousand plus now businesses that

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Speaker 11: we serve. We had a bunch of great brands in

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Speaker 11: the quarter, Barstool Sports, Hersonal supply Company, and we're really

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Speaker 11: what makes Clevio special is we're helping businesses take control

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Speaker 11: of their relationships with consumers and then drive revenue. And

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Speaker 11: I think when you know the economic environment is a

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Speaker 11: little uncertain, software like clevieo becomes a must have.

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Speaker 3: So so on it being a must have, it's also

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Speaker 3: interesting to look who's on the other side of the

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Speaker 3: table for you. You added, like in the call to Sampsonite,

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Speaker 3: for example, why does a company like Samsonite need clavier?

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Speaker 11: Yeah, So what Clavio Software does is we help pull

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Speaker 11: all of a business's data together. So take Samsonite, you know,

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Speaker 11: one of the largest luggage travel companies in the world.

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Speaker 11: We help them organize that data and then deliver personalized

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Speaker 11: experiences across a variety of channels from email to SMS

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Speaker 11: to mobile messaging. And because of how well C connects

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Speaker 11: with the other systems inside of an organization, and a

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Speaker 11: lot of the advanced capabilities, including a lot of the

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Speaker 11: AI features we've released in the last few months Clavio AI.

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Speaker 11: You know, those two factors are why businesses are choosing

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Speaker 11: to work with us.

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Speaker 6: Because we're a revenue engine.

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Speaker 3: I like to look at geography as well, and it's

438
00:25:55,280 --> 00:25:59,600
Speaker 3: really interesting that the Emia region was continues to kind

439
00:25:59,600 --> 00:26:02,639
Speaker 3: of be a a drive a few Why why is

440
00:26:02,680 --> 00:26:07,719
Speaker 3: that such engagement in Europe and the Middle East and Africa.

441
00:26:07,880 --> 00:26:10,080
Speaker 11: Yeah, So, you know, over the last few years, we've

442
00:26:10,400 --> 00:26:13,480
Speaker 11: you know, we're executing our strategy really well. We've done

443
00:26:13,480 --> 00:26:16,320
Speaker 11: a lot of expansion into Europe and with that, we

444
00:26:16,400 --> 00:26:19,560
Speaker 11: launched our products and a lot of our you know, documentation.

445
00:26:19,720 --> 00:26:22,199
Speaker 11: We've added you know, we went beyond English into French.

446
00:26:22,840 --> 00:26:26,200
Speaker 11: We formally launched in the French region and now we've

447
00:26:26,320 --> 00:26:27,400
Speaker 11: established that playbook.

448
00:26:27,400 --> 00:26:27,879
Speaker 5: It happened.

449
00:26:27,920 --> 00:26:29,240
Speaker 3: You know, we launched in Q two.

450
00:26:29,400 --> 00:26:31,520
Speaker 11: We really like the growth we're seeing, and now we're

451
00:26:31,520 --> 00:26:33,679
Speaker 11: going to take that same playbook and use it across

452
00:26:33,720 --> 00:26:36,359
Speaker 11: the rest of Europe and then extend that around the

453
00:26:36,359 --> 00:26:38,639
Speaker 11: rest of the globe into Asia and other parts of

454
00:26:38,680 --> 00:26:39,320
Speaker 11: the Americas.

455
00:26:39,840 --> 00:26:41,600
Speaker 5: And what we've known for a long time.

456
00:26:41,480 --> 00:26:44,320
Speaker 11: Is there are businesses using Klavio in over eighty countries,

457
00:26:45,160 --> 00:26:47,360
Speaker 11: but we're trying to build a product experience that's really

458
00:26:47,440 --> 00:26:50,399
Speaker 11: native to them and so doing things like expanding our

459
00:26:50,520 --> 00:26:54,080
Speaker 11: SMS capabilities. We've more than doubled the number of countries

460
00:26:54,119 --> 00:26:55,800
Speaker 11: where we now support text messaging.

461
00:26:56,400 --> 00:26:57,399
Speaker 3: We have plans to grow that.

462
00:26:57,560 --> 00:27:00,359
Speaker 11: So really excited about the growth we're seeing international in

463
00:27:00,400 --> 00:27:01,200
Speaker 11: Europe in particular.

464
00:27:02,080 --> 00:27:05,080
Speaker 3: Andrew, you're a Boston based company with fewer than two

465
00:27:05,160 --> 00:27:09,000
Speaker 3: thousand employees. What's the talent story for you right now?

466
00:27:09,040 --> 00:27:12,760
Speaker 3: Particularly in terms of AI and headcount. Many companies are

467
00:27:12,760 --> 00:27:17,119
Speaker 3: actually cutting certain areas to reallocate to areas of growth

468
00:27:17,160 --> 00:27:20,360
Speaker 3: like AI. What's your strategy?

469
00:27:20,600 --> 00:27:23,200
Speaker 11: Well, so, from a you know, from a technology standpoint,

470
00:27:23,280 --> 00:27:26,320
Speaker 11: we are very much believers in using artificial intelligence, both

471
00:27:26,320 --> 00:27:29,520
Speaker 11: for our customers and in for us. So we've seen

472
00:27:29,560 --> 00:27:32,720
Speaker 11: good productivity gains from using AI across Klavio, and we

473
00:27:32,760 --> 00:27:34,879
Speaker 11: invest our own some of our own engineering resources and

474
00:27:34,920 --> 00:27:38,160
Speaker 11: doing that. But in terms of our headcount strategy, we're

475
00:27:38,240 --> 00:27:40,920
Speaker 11: global business, so we look for the best.

476
00:27:40,720 --> 00:27:42,159
Speaker 3: Talent around the world, you know.

477
00:27:42,200 --> 00:27:44,400
Speaker 11: I know we started in Boston, but we have offices

478
00:27:44,480 --> 00:27:47,800
Speaker 11: now in Denver, in San Francisco, and London and Sydney,

479
00:27:48,080 --> 00:27:50,280
Speaker 11: and we're planning to open more over the next few quarters.

480
00:27:51,080 --> 00:27:53,639
Speaker 11: So we look for folks that are really ambitious, we

481
00:27:53,680 --> 00:27:56,639
Speaker 11: say high slope. They want to be learners, and wherever

482
00:27:56,680 --> 00:27:58,719
Speaker 11: that talent is, we want them to, you know, come

483
00:27:58,800 --> 00:27:59,720
Speaker 11: join forces with us.

484
00:28:01,000 --> 00:28:04,040
Speaker 3: Andrew Bielecki, CEO of Clavio, and again Clavio up more

485
00:28:04,080 --> 00:28:07,560
Speaker 3: than twenty seven percent, best days since going public in September.

486
00:28:07,920 --> 00:28:09,679
Speaker 3: Thank you. All right, let's talk a little bit more

487
00:28:09,680 --> 00:28:13,280
Speaker 3: about Europe and tech. Semens posted week sales and a

488
00:28:13,440 --> 00:28:16,760
Speaker 3: drop in new orders for its factory automation business, though

489
00:28:16,760 --> 00:28:19,119
Speaker 3: it did record a jump in software demand in the

490
00:28:19,160 --> 00:28:22,680
Speaker 3: third quarter. Bloombers Guy Johnson our Semen CEO Roland Bush.

491
00:28:23,040 --> 00:28:26,600
Speaker 3: Where the strength to the company's bottom line is coming from.

492
00:28:26,640 --> 00:28:27,280
Speaker 3: Have a listened to this.

493
00:28:28,280 --> 00:28:31,320
Speaker 1: It was driven basically by another very strong quarder of

494
00:28:31,320 --> 00:28:36,560
Speaker 1: smart infrastructure. Our electrical business grew by twenty one percent,

495
00:28:37,080 --> 00:28:40,560
Speaker 1: but he also had a very strong softer business. Underlying

496
00:28:40,600 --> 00:28:43,000
Speaker 1: the softer business was very strong, but we also had

497
00:28:43,160 --> 00:28:44,440
Speaker 1: a couple of winds.

498
00:28:44,680 --> 00:28:45,360
Speaker 6: Large wins.

499
00:28:45,880 --> 00:28:51,320
Speaker 1: They don't repeat in that size again, but this helped

500
00:28:51,400 --> 00:28:53,120
Speaker 1: quite a bit also in drive our top line in

501
00:28:53,200 --> 00:28:55,800
Speaker 1: bottom line as well.

502
00:28:56,040 --> 00:28:59,560
Speaker 12: So some fully loppy numbers this time around, which probably

503
00:28:59,600 --> 00:29:02,600
Speaker 12: aren't you have there? You have those stock to your

504
00:29:02,640 --> 00:29:06,480
Speaker 12: guidance for the full year, given what you've just said,

505
00:29:06,560 --> 00:29:08,400
Speaker 12: given what you see in the world at the moment,

506
00:29:08,480 --> 00:29:10,640
Speaker 12: how predictable is the business though right now?

507
00:29:14,600 --> 00:29:18,360
Speaker 1: Well yes, we indeed we confirm our guidance our full

508
00:29:18,440 --> 00:29:22,640
Speaker 1: year outlook for the growth we will end up at

509
00:29:22,680 --> 00:29:25,760
Speaker 1: the lower end though, and we also confirm on our

510
00:29:25,800 --> 00:29:29,320
Speaker 1: EPs guidance the heads name holds true for our businesses

511
00:29:30,040 --> 00:29:32,760
Speaker 1: regarding the IVC their profitability for the full year on

512
00:29:32,800 --> 00:29:34,960
Speaker 1: the lower end, for the SI on the upper end.

513
00:29:35,560 --> 00:29:39,160
Speaker 1: So coming to the predictability, it's really a there are.

514
00:29:39,200 --> 00:29:41,960
Speaker 1: The biggest element which we have here is that over

515
00:29:41,960 --> 00:29:46,360
Speaker 1: the last three years the automation business was growing tremendously

516
00:29:46,440 --> 00:29:48,800
Speaker 1: fast and this ended up in quite a bit of

517
00:29:48,880 --> 00:29:54,440
Speaker 1: stocking in our distribution channels, and this stocking effect has

518
00:29:54,480 --> 00:29:56,080
Speaker 1: to go down. You have to be stock on the

519
00:29:56,080 --> 00:29:57,840
Speaker 1: one side and the market has to pick come on

520
00:29:57,880 --> 00:30:01,360
Speaker 1: the other. This is the unpredictability. How fast does that go?

521
00:30:01,640 --> 00:30:04,240
Speaker 1: When will the market pick up? We see a certain

522
00:30:04,360 --> 00:30:07,640
Speaker 1: light in chemical industry also in China, which is a

523
00:30:07,760 --> 00:30:11,200
Speaker 1: leading indicator, but this is not really the momentum we

524
00:30:11,240 --> 00:30:14,000
Speaker 1: need in order to really go there. Therefore, we still

525
00:30:14,000 --> 00:30:20,400
Speaker 1: have a muted market for automation. It is temporary effect, structural.

526
00:30:20,920 --> 00:30:23,760
Speaker 1: We believe this market keeps on going because there's a

527
00:30:23,800 --> 00:30:27,560
Speaker 1: demand for higher automation and digitalization in the whole industry.

528
00:30:28,840 --> 00:30:31,240
Speaker 3: That was seman CEO Roland Bursch. Now coming up on

529
00:30:31,280 --> 00:30:36,160
Speaker 3: Bloomberg Technology, we're joined by SNAs Coro, former NASA executive,

530
00:30:36,480 --> 00:30:39,560
Speaker 3: to discuss the plans that are being hatched between NASA

531
00:30:39,640 --> 00:30:42,960
Speaker 3: and SpaceX to return the astronauts that have been stuck

532
00:30:42,960 --> 00:30:47,240
Speaker 3: in orbit after complications on that star Liner test mission.

533
00:30:47,360 --> 00:31:01,160
Speaker 3: Really interesting conversation ahead. This is Bloomberg Technology. This is

534
00:31:01,200 --> 00:31:03,560
Speaker 3: Bloomberg Technology, and you're looking at a live shot of

535
00:31:03,600 --> 00:31:06,920
Speaker 3: the principal room. Check out our Bloomberg Technology podcast. You

536
00:31:06,960 --> 00:31:10,560
Speaker 3: can find it on the terminal Apple Spotify and iHeart

537
00:31:10,720 --> 00:31:23,760
Speaker 3: this is Bloomberg. Okay, so we have an update on

538
00:31:23,800 --> 00:31:27,920
Speaker 3: the Boeing Starliner test mission. NASA is working with Elon

539
00:31:28,040 --> 00:31:32,120
Speaker 3: Musk's SpaceX on a plan to return the two astronauts

540
00:31:32,400 --> 00:31:36,200
Speaker 3: back to Earth in February twenty twenty five after technical

541
00:31:36,240 --> 00:31:39,880
Speaker 3: complications caused them to be stuck in orbit for about

542
00:31:39,920 --> 00:31:43,280
Speaker 3: two months on the International Space Station. NASA is going

543
00:31:43,320 --> 00:31:46,240
Speaker 3: to make a final decision in mid August on whether

544
00:31:46,520 --> 00:31:49,240
Speaker 3: to deploy this backup plan. I want to bring in

545
00:31:49,240 --> 00:31:52,720
Speaker 3: an expert who knows the inner workings of the Space Agency.

546
00:31:53,520 --> 00:31:58,600
Speaker 3: Isna Ozo Okuro, former NASA Executive White House Assistant Director

547
00:31:58,680 --> 00:32:01,680
Speaker 3: for Space Policy. Enjoins US now and as an a

548
00:32:02,720 --> 00:32:05,920
Speaker 3: The extension of that plan is that there is a

549
00:32:06,000 --> 00:32:10,720
Speaker 3: crew mission going up in September with SpaceX, and then

550
00:32:10,760 --> 00:32:13,920
Speaker 3: maybe the two astronauts currently on ISS could hitch a

551
00:32:14,080 --> 00:32:17,000
Speaker 3: ride back February of twenty twenty five, which seems a

552
00:32:17,040 --> 00:32:20,440
Speaker 3: really long time away. Just your reaction to where we

553
00:32:20,480 --> 00:32:22,800
Speaker 3: are right now that are backup plans needed?

554
00:32:25,640 --> 00:32:25,840
Speaker 6: You know?

555
00:32:26,000 --> 00:32:28,680
Speaker 13: The great thing about this backup plan is that we

556
00:32:28,760 --> 00:32:32,280
Speaker 13: have it, because if we didn't, then I think that

557
00:32:32,360 --> 00:32:36,280
Speaker 13: there would be, especially when you look at the global

558
00:32:37,360 --> 00:32:40,440
Speaker 13: geopolitical environment, I think that we would have a much

559
00:32:40,840 --> 00:32:43,360
Speaker 13: harder time if we didn't have this option. So it's

560
00:32:43,480 --> 00:32:45,480
Speaker 13: great that we have this option. I think that's the

561
00:32:45,520 --> 00:32:50,960
Speaker 13: first and most important thing. And it's important that America

562
00:32:51,080 --> 00:32:54,760
Speaker 13: has two options to vary humans.

563
00:32:54,320 --> 00:32:55,480
Speaker 6: Safely to space.

564
00:32:56,080 --> 00:33:00,920
Speaker 13: What I do see also is NASA Boeing and SpaceX

565
00:33:01,000 --> 00:33:07,600
Speaker 13: prioritizing human safety first, as they should, so that's equally important.

566
00:33:08,640 --> 00:33:11,920
Speaker 3: There is reporting out there about NASA officials or teams

567
00:33:11,920 --> 00:33:14,959
Speaker 3: within NASA sort of not being one hundred percent aligned

568
00:33:14,960 --> 00:33:18,280
Speaker 3: on what the best plan was to do is best.

569
00:33:18,360 --> 00:33:22,440
Speaker 3: You can just help our audience understand how NASA works.

570
00:33:22,560 --> 00:33:25,480
Speaker 3: You know, now in this era of space, we have

571
00:33:26,080 --> 00:33:30,400
Speaker 3: commercial partners, you know, leading the activity, but NASA still

572
00:33:30,400 --> 00:33:31,520
Speaker 3: has a central role.

573
00:33:33,280 --> 00:33:33,959
Speaker 5: Absolutely well.

574
00:33:34,000 --> 00:33:39,400
Speaker 13: The astronauts are at NASA employees, they are NASA astronauts,

575
00:33:39,480 --> 00:33:43,640
Speaker 13: and these companies have contracts with NASA. So NASA has

576
00:33:43,680 --> 00:33:49,760
Speaker 13: a responsibility to review and authorize decisions because at the

577
00:33:49,880 --> 00:33:52,720
Speaker 13: end of the day, the buck stops with them. And

578
00:33:52,880 --> 00:33:55,960
Speaker 13: so if you step back a few weeks ago, there

579
00:33:56,000 --> 00:34:01,760
Speaker 13: was a task that was consulted and what they're about

580
00:34:01,760 --> 00:34:04,720
Speaker 13: twenty six of the twenty seven jets that were fired,

581
00:34:05,360 --> 00:34:08,200
Speaker 13: and the goal was to ensure that these thrusters were

582
00:34:08,239 --> 00:34:12,719
Speaker 13: working properly, and we're meeting performance requirements. And now the

583
00:34:12,800 --> 00:34:16,280
Speaker 13: team is going back and analyzing that data. So there

584
00:34:16,360 --> 00:34:21,840
Speaker 13: are two reasons.

585
00:34:21,760 --> 00:34:23,120
Speaker 5: They can really go either way.

586
00:34:23,239 --> 00:34:25,799
Speaker 13: One could say, well, you know, we've analyze the data

587
00:34:25,840 --> 00:34:29,520
Speaker 13: and we think that this Boeing aircraft can come back

588
00:34:30,719 --> 00:34:34,160
Speaker 13: with the astronauts or without the astronauts. And then there

589
00:34:34,200 --> 00:34:39,960
Speaker 13: is another reasoning, which is that SpaceX is really the

590
00:34:40,040 --> 00:34:43,120
Speaker 13: way to go. So either way, what you see within

591
00:34:43,200 --> 00:34:47,239
Speaker 13: the agency is that there are people and this is

592
00:34:47,280 --> 00:34:51,600
Speaker 13: good when you have disagreement. And now they have a

593
00:34:51,640 --> 00:34:55,719
Speaker 13: bit more time, given the SpaceX mission that's going up

594
00:34:55,719 --> 00:34:59,000
Speaker 13: in September, to analyze the data further, and then they

595
00:34:59,000 --> 00:35:01,560
Speaker 13: will make a decision and based on the performance of

596
00:35:01,960 --> 00:35:05,879
Speaker 13: the thrusters, the performance of this helium leak that they

597
00:35:05,920 --> 00:35:09,840
Speaker 13: are monitoring, and they will make a call mid August

598
00:35:10,040 --> 00:35:13,239
Speaker 13: based on all the information they have available, and they

599
00:35:13,280 --> 00:35:18,000
Speaker 13: will obviously make a decision that includes the prioritizes human

600
00:35:18,120 --> 00:35:24,400
Speaker 13: safety first, that prioritizes a safe landing, and that also

601
00:35:24,640 --> 00:35:28,400
Speaker 13: builds confidence in the system.

602
00:35:28,360 --> 00:35:29,840
Speaker 3: That's what I want to ask about as an A,

603
00:35:29,960 --> 00:35:33,759
Speaker 3: because we just showed the chart of Boeing spending on

604
00:35:34,040 --> 00:35:38,480
Speaker 3: the star Liner project and it's been well reported the

605
00:35:38,520 --> 00:35:42,240
Speaker 3: cost overruns, the delays. How to your mind, de NaSTA

606
00:35:42,360 --> 00:35:45,720
Speaker 3: and Boeing as partners now go back out and bring

607
00:35:45,760 --> 00:35:51,720
Speaker 3: public confidence in the program going forward when it works.

608
00:35:52,080 --> 00:35:54,799
Speaker 13: And that's what that's the point. We're trying to get

609
00:35:54,840 --> 00:35:58,400
Speaker 13: to a point where it will work and there is

610
00:35:58,480 --> 00:36:00,799
Speaker 13: confidence that's built in the system so that it can

611
00:36:00,840 --> 00:36:06,319
Speaker 13: ferry humans, and then the public will have confidence in

612
00:36:06,360 --> 00:36:09,520
Speaker 13: the system. But we have to get it to work first,

613
00:36:09,600 --> 00:36:13,440
Speaker 13: and which is why the analysis of these firing tests

614
00:36:13,480 --> 00:36:18,280
Speaker 13: that were conducted recently have to be completed, but NASA

615
00:36:18,360 --> 00:36:21,839
Speaker 13: will not will not make a decision until they are

616
00:36:22,239 --> 00:36:26,120
Speaker 13: they have conducted a thorough analysis and believe that the

617
00:36:26,239 --> 00:36:29,360
Speaker 13: data provided moves them in one direction or another.

618
00:36:31,080 --> 00:36:33,320
Speaker 3: As an A, also a senior fellow at the Harvard

619
00:36:33,320 --> 00:36:35,839
Speaker 3: Belfa Center. The other big piece of talk right now

620
00:36:35,840 --> 00:36:41,359
Speaker 3: in the industry is China and it's satellite constellation ambitions.

621
00:36:41,520 --> 00:36:44,520
Speaker 3: Might they do something similar to starlink And if they

622
00:36:44,560 --> 00:36:48,720
Speaker 3: were to, how does that work? The competition for space

623
00:36:49,080 --> 00:36:53,480
Speaker 3: the proximity of a US run constellation to a Chinese constellation.

624
00:36:53,840 --> 00:36:55,040
Speaker 3: Your thoughts on that isn't it?

625
00:36:57,080 --> 00:37:00,319
Speaker 13: You know what is great about this question and the

626
00:37:00,440 --> 00:37:04,760
Speaker 13: scenario is that we are already living it. Before the

627
00:37:04,800 --> 00:37:09,360
Speaker 13: SpaceX constellation went up, we had smaller constellations, but we

628
00:37:09,440 --> 00:37:13,120
Speaker 13: still had constellations in space. And then a mega constellation

629
00:37:13,280 --> 00:37:16,520
Speaker 13: was put up by US commercial company, which gave us

630
00:37:17,000 --> 00:37:21,120
Speaker 13: a leverage to understand and to plan for what it

631
00:37:21,120 --> 00:37:24,800
Speaker 13: would look like if a strategic competitor, in this case

632
00:37:25,120 --> 00:37:28,719
Speaker 13: a nation like China put up constellations of their own.

633
00:37:29,120 --> 00:37:33,359
Speaker 13: So through the constellation that we have up there put

634
00:37:33,400 --> 00:37:36,760
Speaker 13: up by SpaceX, we have been able to have discussions

635
00:37:36,920 --> 00:37:43,360
Speaker 13: and even remediations to radio astronomy issues, to night sky

636
00:37:43,800 --> 00:37:48,359
Speaker 13: issues based on what the satellites can see or what

637
00:37:48,440 --> 00:37:53,360
Speaker 13: they prevent us from seeing from here on Earth. We

638
00:37:53,520 --> 00:37:57,840
Speaker 13: have had conversations about orbital debris, which is the amount

639
00:37:57,920 --> 00:38:01,600
Speaker 13: of junk that is left in space. Now we've had

640
00:38:01,680 --> 00:38:06,319
Speaker 13: conversations about space sustainability and figure it out policy and

641
00:38:07,640 --> 00:38:11,319
Speaker 13: engineering solutions to all of these issues. And so I

642
00:38:11,360 --> 00:38:14,520
Speaker 13: think that we are actually in a better place as

643
00:38:14,560 --> 00:38:18,200
Speaker 13: the United States to prepare the best we can for

644
00:38:18,320 --> 00:38:21,160
Speaker 13: this consolation, because we have an example up there today.

645
00:38:21,239 --> 00:38:23,480
Speaker 13: If we didn't, then I think we would be in

646
00:38:23,520 --> 00:38:27,719
Speaker 13: a completely different place. However, that doesn't mean that we

647
00:38:27,800 --> 00:38:31,120
Speaker 13: can plan entirely, as you say, for what will happen.

648
00:38:32,239 --> 00:38:34,520
Speaker 3: As an Azokoro, it's great to have you back on

649
00:38:34,560 --> 00:38:37,680
Speaker 3: Bloomberg Technology. Thank you, former Nasser executive and as I said,

650
00:38:37,920 --> 00:38:40,480
Speaker 3: currently a fellow at the Harvard Belfa Center. Coming up

651
00:38:40,480 --> 00:38:44,520
Speaker 3: on the show, Apple is working on its smallest desktop

652
00:38:44,640 --> 00:38:48,439
Speaker 3: computer yet. We have that Bloomberg reporting coming up next.

653
00:38:48,719 --> 00:39:06,400
Speaker 3: This is Bloomberg Technology. Apple is planning a new version

654
00:39:06,440 --> 00:39:09,440
Speaker 3: of the Mac Mini that will be its smallest desktop

655
00:39:09,480 --> 00:39:12,360
Speaker 3: computer yet. This is part of a broader overhaul of

656
00:39:12,400 --> 00:39:15,680
Speaker 3: the Mac line with AI Focus Chips, bringing in bloomboas

657
00:39:15,719 --> 00:39:18,080
Speaker 3: Mark German, who of course broke the story and the

658
00:39:18,120 --> 00:39:22,200
Speaker 3: focus here is M four and bringing M four him.

659
00:39:22,440 --> 00:39:25,120
Speaker 3: Just explain the basic details of what you've reported.

660
00:39:26,880 --> 00:39:30,200
Speaker 14: Yeah, So the Mac COMMINEE, last revamped in twenty ten

661
00:39:30,320 --> 00:39:33,480
Speaker 14: under received jobs, now about fifteen years later, is getting

662
00:39:33,480 --> 00:39:37,080
Speaker 14: another redesign. That's a really big delta in between new designs,

663
00:39:37,400 --> 00:39:41,640
Speaker 14: and this is essentially because of these new processors. An

664
00:39:41,680 --> 00:39:43,480
Speaker 14: iPad pro in a box.

665
00:39:43,640 --> 00:39:44,359
Speaker 5: They're able to.

666
00:39:44,320 --> 00:39:47,680
Speaker 14: Shrink this down into something that is about the size

667
00:39:47,719 --> 00:39:51,000
Speaker 14: of an Apple TV set up box, so something probably

668
00:39:51,040 --> 00:39:53,040
Speaker 14: smaller than four by four inches.

669
00:39:53,760 --> 00:39:55,880
Speaker 5: This is going to be a very popular computer.

670
00:39:55,960 --> 00:39:58,360
Speaker 14: This is probably going to be marketed as the smallest

671
00:39:58,360 --> 00:40:01,839
Speaker 14: desktop computer ever made, not only by Apple but by

672
00:40:01,880 --> 00:40:02,960
Speaker 14: any computer company.

673
00:40:03,440 --> 00:40:06,040
Speaker 5: And this is going to have a supremely powerful chip.

674
00:40:06,080 --> 00:40:08,480
Speaker 14: The M four pro chip is going to have even

675
00:40:08,560 --> 00:40:12,320
Speaker 14: better graphic source power, even better AI processing, even better

676
00:40:12,360 --> 00:40:14,960
Speaker 14: CPU performance than the M four and the new iPad pro.

677
00:40:15,120 --> 00:40:17,799
Speaker 14: So this is going to be very exciting to macfans

678
00:40:17,880 --> 00:40:19,040
Speaker 14: and coming later this year.

679
00:40:20,280 --> 00:40:23,319
Speaker 3: The ideas outline to us by opening bag sources are

680
00:40:23,320 --> 00:40:26,359
Speaker 3: really interesting. What I'd try to understand, and Apple didn't

681
00:40:26,400 --> 00:40:29,000
Speaker 3: comment on the story, of course, is where the Mac

682
00:40:29,040 --> 00:40:31,759
Speaker 3: Mini or Mac kind of sits within the lineup of

683
00:40:31,800 --> 00:40:33,959
Speaker 3: Apple products. Who's the buyer heir Mark?

684
00:40:35,719 --> 00:40:37,600
Speaker 14: Yeah, this Mac Mini is going to be for people

685
00:40:37,600 --> 00:40:40,080
Speaker 14: who want to hook up a computer to their TV.

686
00:40:40,320 --> 00:40:40,839
Speaker 6: You know, there's some.

687
00:40:40,800 --> 00:40:44,080
Speaker 14: People who connect Macs to their TVs in their living

688
00:40:44,120 --> 00:40:45,160
Speaker 14: rooms or in their office.

689
00:40:45,239 --> 00:40:46,560
Speaker 5: That's going to be a big year space.

690
00:40:47,160 --> 00:40:49,880
Speaker 14: But also someone who has a desktop at home and

691
00:40:50,000 --> 00:40:53,280
Speaker 14: wants to do laptop s work, so the same amount

692
00:40:53,320 --> 00:40:56,720
Speaker 14: of work you would do on a desktop, So web browsing.

693
00:40:56,880 --> 00:40:59,560
Speaker 5: Email, photo editing, and video editing. You'll be able to

694
00:40:59,600 --> 00:41:01,080
Speaker 5: do that with this machine and hook it up to

695
00:41:01,120 --> 00:41:02,000
Speaker 5: any monitor you have.

696
00:41:02,120 --> 00:41:04,920
Speaker 14: It comes standalone, a keyboard, no mouse, don't drag that

697
00:41:05,040 --> 00:41:05,600
Speaker 14: in the box.

698
00:41:05,640 --> 00:41:08,000
Speaker 5: So this is going to be a pretty modular machine.

699
00:41:08,960 --> 00:41:13,000
Speaker 3: Bloomberg's Mark German with another exclusive piece of reporting, thank you, okay.

700
00:41:13,560 --> 00:41:16,040
Speaker 3: For years, the likes of Google and Open Ai have

701
00:41:16,160 --> 00:41:20,360
Speaker 3: been racing to build ever bigger and costlier AI models

702
00:41:20,480 --> 00:41:23,920
Speaker 3: using a tremendous amount of online data. Think chatbots like

703
00:41:24,000 --> 00:41:27,960
Speaker 3: chat gpt, which can handle a wide range of complex queries.

704
00:41:28,040 --> 00:41:31,880
Speaker 3: But some startups are now betting on a different strategy,

705
00:41:32,440 --> 00:41:36,520
Speaker 3: small language models, automating a more limited set of data

706
00:41:36,600 --> 00:41:40,239
Speaker 3: day corporate tasks without requiring as much data. Bloombog's Rachel

707
00:41:40,320 --> 00:41:43,160
Speaker 3: Mets has been writing about exactly this. So you've heard

708
00:41:43,200 --> 00:41:45,759
Speaker 3: of the large language model, now is the time of

709
00:41:45,800 --> 00:41:48,760
Speaker 3: the small language model. What is a small language model?

710
00:41:49,600 --> 00:41:52,160
Speaker 15: Small language model is kind of what it sounds like, right.

711
00:41:52,960 --> 00:41:55,760
Speaker 15: A large language model is treaming on a ton of data,

712
00:41:56,440 --> 00:41:59,880
Speaker 15: often gathered from all over the Internet and used for

713
00:42:00,120 --> 00:42:01,080
Speaker 15: a range of tasks.

714
00:42:01,239 --> 00:42:03,080
Speaker 5: Chat GBT people.

715
00:42:03,120 --> 00:42:05,680
Speaker 15: Might use it to write Shakespeare's sonnets about ice cream,

716
00:42:05,800 --> 00:42:09,480
Speaker 15: or they might use it to summarize meeting notes, you know,

717
00:42:09,520 --> 00:42:12,040
Speaker 15: like a very diverse range of tasks that are related

718
00:42:12,040 --> 00:42:14,840
Speaker 15: to human language. These small models are trained on a

719
00:42:14,960 --> 00:42:19,080
Speaker 15: much smaller, more refined set of data. And the idea

720
00:42:19,239 --> 00:42:21,279
Speaker 15: is that for a lot of companies, and lets be clear,

721
00:42:21,360 --> 00:42:24,160
Speaker 15: companies are really the customers for a lot of these

722
00:42:24,239 --> 00:42:26,799
Speaker 15: large language models. They're the ones with lots of money, right,

723
00:42:26,840 --> 00:42:29,560
Speaker 15: and AI companies want them to pay for them.

724
00:42:29,840 --> 00:42:32,000
Speaker 5: They're going to need them for specific things.

725
00:42:31,760 --> 00:42:34,399
Speaker 15: And maybe one thing that they are really good at,

726
00:42:34,520 --> 00:42:38,080
Speaker 15: something related to coding, perhaps a chatbot that's very focused

727
00:42:38,160 --> 00:42:42,000
Speaker 15: on tax prep questions for instance. So the hope by

728
00:42:42,000 --> 00:42:44,279
Speaker 15: a lot of these companies is that these models will

729
00:42:44,320 --> 00:42:47,360
Speaker 15: be more energy efficient, and they will be more focused,

730
00:42:47,440 --> 00:42:50,280
Speaker 15: and they will basically just be more helpful in general.

731
00:42:52,200 --> 00:42:55,080
Speaker 3: Who is leading the way in small language models? It

732
00:42:55,160 --> 00:42:57,200
Speaker 3: kind of seems like an old question, but every time

733
00:42:57,480 --> 00:43:00,560
Speaker 3: a very cutting edge large language model comes out, we

734
00:43:00,640 --> 00:43:02,640
Speaker 3: cover it as news on the show. Do we have

735
00:43:02,680 --> 00:43:04,880
Speaker 3: a sense of like who's focused on that area?

736
00:43:06,080 --> 00:43:09,680
Speaker 15: Yeah, So we have actually like a pretty big range

737
00:43:09,680 --> 00:43:11,920
Speaker 15: of companies that are involved in this. There are a

738
00:43:11,960 --> 00:43:15,000
Speaker 15: couple startups that are very focused on this. I spoke

739
00:43:15,080 --> 00:43:20,760
Speaker 15: with one called rcai. They are totally focused on customizing

740
00:43:20,960 --> 00:43:25,440
Speaker 15: open source small models and customer so they customize them

741
00:43:25,440 --> 00:43:29,160
Speaker 15: for customers, including a company called Guild which used it

742
00:43:29,200 --> 00:43:31,960
Speaker 15: to make a career coaching chatbot so they could scale

743
00:43:32,080 --> 00:43:35,560
Speaker 15: up more than they could do with their human career coaches.

744
00:43:36,040 --> 00:43:39,320
Speaker 15: Socana Ai is a company that's in Japan that's working

745
00:43:39,320 --> 00:43:41,719
Speaker 15: on this. And then also the big tech companies have

746
00:43:41,840 --> 00:43:46,239
Speaker 15: increasingly been releasing these small versions of their larger flagship

747
00:43:46,239 --> 00:43:50,040
Speaker 15: models like Opening I recently released or O Mini.

748
00:43:51,600 --> 00:43:55,520
Speaker 3: Bloomberg's Rachel mets on small language models a new term

749
00:43:55,760 --> 00:43:58,480
Speaker 3: for daily use here on the show. That does it

750
00:43:58,520 --> 00:44:01,759
Speaker 3: for this edition of Bloomberg Techno, lots of recap. Don't

751
00:44:01,760 --> 00:44:03,799
Speaker 3: forget to check out our podcasts. You know where to

752
00:44:03,800 --> 00:44:06,239
Speaker 3: find it on the Bloomberg platforms, the terminal as well

753
00:44:06,280 --> 00:44:09,520
Speaker 3: as online and Apple, Spotify and iHeart will show you

754
00:44:09,560 --> 00:44:12,080
Speaker 3: some beautiful pictures in just a moment. And for now,

755
00:44:12,400 --> 00:44:21,800
Speaker 3: this is Bloomberg Technology