WEBVTT - Klaviyo's IPO and Amazon's AI Alexa 0:00:01.639 --> 0:00:05.280 From Marhard where Innovation of Money and Power Collie in 0:00:05.400 --> 0:00:06.920 Silicon Valley, NBN. 0:00:07.240 --> 0:00:10.840 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:10.800 --> 0:00:27.080 Ludlove live from Bloomberg's World headquarters in New York. 0:00:27.080 --> 0:00:27.960 I'm Caroline Hyde and. 0:00:27.960 --> 0:00:30.080 I'm Ed Lovelow. This is Bloomberg Technology. 0:00:30.120 --> 0:00:30.560 Coming up. 0:00:30.680 --> 0:00:34.080 More IPO coverage ahead. Klavio becomes a third major US 0:00:34.200 --> 0:00:36.200 listing in a week. We sit down with the CEO 0:00:36.280 --> 0:00:38.040 and investors in the company. 0:00:38.000 --> 0:00:40.960 And Germany wants to ban key parts from Huawei for 0:00:41.000 --> 0:00:43.639 its five D mobile network as the country reviews its 0:00:43.680 --> 0:00:46.240 reliance on Chinese tech. We have more ahead. 0:00:46.560 --> 0:00:49.159 Plus, Amazon announces a new smart home device and a 0:00:49.240 --> 0:00:50.720 generative AI based Alexa. 0:00:51.000 --> 0:00:53.400 Will discuss the features with device chief David Limp. 0:00:53.760 --> 0:00:55.480 Yeah, let's get a check on the market. This will 0:00:55.520 --> 0:00:58.120 be quick because we're going nowhere on any asset class 0:00:58.320 --> 0:01:00.840 related to technology. Otherwise it is FED day. We will 0:01:00.840 --> 0:01:04.520 have special coverage of that FED decision later this afternoon. 0:01:04.560 --> 0:01:07.840 And basically the market sees them holding rates steady. You 0:01:07.880 --> 0:01:10.000 look at the n as that one hundred completely flat 0:01:10.800 --> 0:01:12.600 and now as that Gone Dragon index, it had been 0:01:12.680 --> 0:01:14.759 slightly out performing up a few tens one percent. We're 0:01:14.760 --> 0:01:17.480 going to be talking about US China relations in the 0:01:17.480 --> 0:01:19.800 context of tech later in the show, that of Europe 0:01:19.800 --> 0:01:22.840 as well, US tenure yield four point three percent, and 0:01:22.880 --> 0:01:26.039 then Bitcoin holding at twenty seven thousand US dollars per token. 0:01:26.200 --> 0:01:28.920 This is the definition Caroline of treading water ahead of 0:01:28.920 --> 0:01:29.760 a big FED decision. 0:01:30.000 --> 0:01:32.200 Yeah, all eyes on the macro. Just go micro for 0:01:32.240 --> 0:01:34.920 a moment. Though the individual stock movers are interesting, there 0:01:34.920 --> 0:01:38.000 are some updates coming from certain companies, and I'm looking 0:01:38.040 --> 0:01:40.959 at the likes of Intel, for example, has been well 0:01:41.000 --> 0:01:43.840 I mean pairing an earlier decline, but notably we are 0:01:43.880 --> 0:01:45.440 seeing it currently off by more. 0:01:45.319 --> 0:01:46.080 Than two percent. 0:01:46.160 --> 0:01:49.320 This is maybe that Invasion Day didn't live up to expectations. 0:01:49.320 --> 0:01:52.320 In particular, we wanted some color around eighteen A Chips, 0:01:52.320 --> 0:01:53.240 who are the customers? 0:01:53.400 --> 0:01:54.880 We didn't get that we're off by two percent? 0:01:54.920 --> 0:01:57.760 Apple, I highlight off by nineteen percent, Ubs saying the 0:01:57.800 --> 0:02:01.320 color on iPhone fifteen is at best in terms of 0:02:01.320 --> 0:02:04.240 some of the ultimate desire to be buying in and 0:02:04.240 --> 0:02:06.200 what are the backlogs looking like. Pinterest on the up 0:02:06.280 --> 0:02:09.919 more than four percent as it's investeday looks promising monetization 0:02:10.000 --> 0:02:10.960 there to be had. 0:02:10.760 --> 0:02:13.560 But what's on the downside kart. Let so I have 0:02:13.600 --> 0:02:14.200 a little look at. 0:02:14.160 --> 0:02:16.680 The latest IPO on the block that came yesterday. It 0:02:16.680 --> 0:02:18.880 is still higher over the last couple of days. Remember 0:02:18.919 --> 0:02:20.880 thirty two dollars twenty it is above we're at priced 0:02:20.880 --> 0:02:21.639 at thirty dollars. 0:02:21.800 --> 0:02:23.600 But we are coming off of that euphoric high. 0:02:23.639 --> 0:02:25.800 The pop was in excess of forty percent and then 0:02:25.960 --> 0:02:29.560 so ended the day down a twelve percent rise. Now 0:02:29.600 --> 0:02:31.840 we fade that a little bit more as just investors 0:02:31.840 --> 0:02:33.679 perhaps start to take a little bit of profit it. 0:02:34.560 --> 0:02:36.320 Let's stick with IPOs. It is the theme of the 0:02:36.320 --> 0:02:38.080 week of the show and get straight to the third 0:02:38.120 --> 0:02:40.920 major US listing in a week marketing in data horsemation 0:02:41.040 --> 0:02:43.799 provider Clavier joining us on set. Who else the man 0:02:43.880 --> 0:02:47.400 who runs to break news, Ryan gord I think we 0:02:47.480 --> 0:02:50.840 saw that Clavio indicated to open between thirty six to 0:02:50.840 --> 0:02:54.720 thirty eight dollars. The IPO priced at thirty dollars build 0:02:54.800 --> 0:02:56.399 up for US towards this listing. 0:02:56.240 --> 0:02:59.480 Yeah, I mean it's the second ipodprice the thirtieth share 0:02:59.560 --> 0:03:02.800 this week. Obviously Instacart price to thirty a share. I 0:03:02.840 --> 0:03:05.080 would say, you know you Caroline you've just brought attention 0:03:05.160 --> 0:03:09.520 to instacart. Is the is the sun coming up on IPOs? 0:03:09.520 --> 0:03:11.600 Maybe, but maybe. 0:03:13.000 --> 0:03:15.680 Maybe it's just not quite enough to know fully thaw 0:03:15.720 --> 0:03:18.079 the frost. And I think that's what we're hearing. It's, 0:03:18.160 --> 0:03:20.760 you know, let's see what happens today with Clavier. The 0:03:20.840 --> 0:03:23.200 quotes of thirty six thirty eight. Of course weak, there's 0:03:23.240 --> 0:03:25.840 going to be some shifting around there, but it was 0:03:26.360 --> 0:03:27.960 it seemed to be, you know, it's this, it's the 0:03:28.000 --> 0:03:32.400 third major offering in a week. There's clearly momentum. I 0:03:32.440 --> 0:03:36.040 spoke to Andrew this morning, Andrew Bilecki, co founder, and 0:03:36.080 --> 0:03:38.720 see you in a bit. He'll be on on shortly, 0:03:38.760 --> 0:03:41.480 and he said, you know, his claim is that if 0:03:41.480 --> 0:03:44.080 you're a company that has discipline, if you're a company 0:03:44.080 --> 0:03:46.440 that has good union economics, you can get out there 0:03:46.480 --> 0:03:49.320 and investors will listen to you. So I think it's 0:03:49.320 --> 0:03:51.200 a it's a it's a claim. I'm sure we'll see 0:03:51.200 --> 0:03:52.560 it in a while, but we're. 0:03:52.360 --> 0:03:55.560 About to go to a very long term investor whose 0:03:55.720 --> 0:03:59.120 real view is this is a company that has capital discipline. 0:03:59.360 --> 0:04:02.040 What's notable, it's all of these companies are pricing at 0:04:02.040 --> 0:04:04.520 the top end of the range, and so they're managing 0:04:04.520 --> 0:04:06.400 to lock in a decent amount of money, not leaving 0:04:06.440 --> 0:04:10.680 as much perhaps on the table as some worried armhad are. Ultimately, 0:04:10.680 --> 0:04:12.600 who are the players who wanting to get into these 0:04:12.760 --> 0:04:13.520 particular deals? 0:04:13.520 --> 0:04:14.520 Because Clavier is a. 0:04:14.440 --> 0:04:17.200 B to B player, Instacut much more retail focused. Do 0:04:17.240 --> 0:04:19.080 we know who's trying to buy in on first day? 0:04:19.800 --> 0:04:22.080 You know, it's a good question because when you think 0:04:22.120 --> 0:04:25.000 that Clavier is the first IPO pretty much in two 0:04:25.040 --> 0:04:27.880 years to come from the enterprise software sector, we're used 0:04:27.880 --> 0:04:30.720 to seeing this particular window prior to Thanksgiving being full 0:04:30.760 --> 0:04:33.200 of these companies. Obviously, let's take COVID out of the 0:04:33.200 --> 0:04:36.080 picture and think about twenty nineteen rather than twenty twenty one. 0:04:36.320 --> 0:04:38.440 But this is generally the type of class that we're 0:04:38.480 --> 0:04:41.360 expecting to see because they have the good fundamentals, they 0:04:41.400 --> 0:04:43.800 have the good unit economics, they have those kinds of 0:04:44.200 --> 0:04:47.440 those those headlines. Really that a lot of the big 0:04:47.440 --> 0:04:50.719 investors like t row so on, will you know, think about, 0:04:50.760 --> 0:04:53.039 you know, maybe in the future as being part of 0:04:53.040 --> 0:04:54.960 their part of the picture for them, But you know, 0:04:55.000 --> 0:04:57.839 as far as the retail side of the of it goes, 0:04:58.080 --> 0:05:00.000 I mean again, we're going to get another test probably 0:05:00.080 --> 0:05:01.800 in the next couple of weeks of Berking stock, so 0:05:02.240 --> 0:05:05.320 we can I would yeah, probably, As I say, the 0:05:05.360 --> 0:05:08.479 foster frost not fully thawed. Let's see what happens in 0:05:08.560 --> 0:05:09.440 a couple of weeks time. 0:05:10.000 --> 0:05:12.039 The excitement when we have an IPO window like this 0:05:12.200 --> 0:05:15.120 is why you have the employees who want some liquidity 0:05:15.160 --> 0:05:17.839 for their stock. You have the venture capitalists who are 0:05:17.839 --> 0:05:20.080 coming on the show talking about why they got in early, 0:05:20.480 --> 0:05:23.840 the bankers who'd bankrolling it. You know what's terrific about 0:05:23.839 --> 0:05:25.520 our deals team is you have this on the ground 0:05:25.560 --> 0:05:29.680 reporting is their genuine sustained excitement. In other words, do 0:05:29.839 --> 0:05:32.719 the sources that we speak to think the IPO window 0:05:32.760 --> 0:05:36.039 carries on or it's kind of a short lived euthoria ed. 0:05:36.160 --> 0:05:39.080 You know, I've been covering IPOs for a while, and 0:05:39.440 --> 0:05:41.680 the fact that people are now wanting to take calls 0:05:41.680 --> 0:05:44.599 to talk about IPOs probably tells us, you know, kind 0:05:44.640 --> 0:05:47.000 of where we're heading. It's just funny that you don't 0:05:47.040 --> 0:05:49.040 really have to find so much of an excuse anymore 0:05:49.080 --> 0:05:50.720 to bring up the idea that you know there's going 0:05:50.760 --> 0:05:53.120 to be a company ipoing. You had probably been laughed 0:05:53.120 --> 0:05:55.240 out the door. Maybe as recently as six months ago, 0:05:55.680 --> 0:05:57.599 but you know, back to the point I think about 0:05:57.600 --> 0:05:59.839 what drives it for some of these benure capital firms. 0:05:59.839 --> 0:06:02.920 Of course, you know, in Klavio's case, even it's still AI, 0:06:03.240 --> 0:06:05.520 it's you know, going long on machine learning. These are 0:06:05.560 --> 0:06:08.400 still the headline BuzzFeed, you know, buzz terms that you 0:06:08.400 --> 0:06:11.680 know really helped to push these these offerings. And you know, 0:06:11.720 --> 0:06:13.520 if you can get that in front of your investors 0:06:13.560 --> 0:06:15.839 on the road show and you know, really drill down 0:06:15.839 --> 0:06:17.680 into why you're going to be at the forefront of 0:06:17.720 --> 0:06:21.320 those trends, then you know they're all is all right. 0:06:21.320 --> 0:06:23.440 Bloombog's Ryan Gord, thank you, get out of here, go 0:06:23.480 --> 0:06:25.839 do some recording and joining us now. I'm absolutely delight, 0:06:25.920 --> 0:06:30.080 say Caroline John Carlin, Acadian Software executive chairman who was 0:06:30.120 --> 0:06:34.000 an investor in Klavyo in its series B and series D. 0:06:34.160 --> 0:06:35.680 And John, if you allow me, I just want to 0:06:35.680 --> 0:06:37.960 tell a bit of your story. You invested seven million 0:06:38.000 --> 0:06:41.640 dollars early twenty sixteen. At that time klavey O was 0:06:41.680 --> 0:06:44.800 ten people. Just explain to us in the audience what 0:06:44.880 --> 0:06:47.760 today means to you as one of the original backers. 0:06:48.600 --> 0:06:50.880 Oh, it's a huge milestone for me and more importantly 0:06:50.920 --> 0:06:54.600 for the company it was. It was always just an exceptional, 0:06:54.720 --> 0:06:57.240 unique company. The thing about Andrew and Eden team is 0:06:57.279 --> 0:06:59.600 that they were able to grow the business from the 0:06:59.640 --> 0:07:03.640 early stage without running big losses and never really need 0:07:03.680 --> 0:07:04.839 additional funding after that. 0:07:04.960 --> 0:07:06.120 So now to be here at the. 0:07:07.000 --> 0:07:10.400 Center of commerce the NYSC floor is kind of amazing 0:07:10.440 --> 0:07:13.120 given to the company was never really about raising huge 0:07:13.160 --> 0:07:13.920 amounts of money. 0:07:13.760 --> 0:07:14.440 In the early days. 0:07:15.040 --> 0:07:17.880 What it is about is SaaS. It's about software. 0:07:18.080 --> 0:07:20.720 It's about ensuring that it can help other companies get 0:07:20.720 --> 0:07:22.920 the right digital message out at the right time. John, 0:07:23.280 --> 0:07:25.200 how much are we seeing them having a moat in 0:07:25.200 --> 0:07:27.320 this particular instance. How much can they ensure that they 0:07:27.400 --> 0:07:29.080 rise above the competition now that they're public? 0:07:30.480 --> 0:07:32.480 Oh boy, I'll tell you what this is. There's a 0:07:32.480 --> 0:07:35.720 pretty significant mode here. The technology that this company has 0:07:35.720 --> 0:07:39.000 built from the earliest days has defended its pricing, has 0:07:39.040 --> 0:07:42.720 defended this and really been the engine behind this unbelievably 0:07:42.720 --> 0:07:44.560 efficient growth machine. 0:07:44.840 --> 0:07:45.200 John. 0:07:45.280 --> 0:07:46.840 We were just hearing a bit about your story, the 0:07:46.840 --> 0:07:50.880 fact that you believed in this company before anyone else. 0:07:50.960 --> 0:07:55.880 Ultimately ten people seven million checks. Following on with further checks. 0:07:55.600 --> 0:07:56.720 And the B the D round. 0:07:57.480 --> 0:08:01.080 What ultimately was the recipe for you? What you say, 0:08:01.120 --> 0:08:03.320 it's capital discipline, but there must have been something else 0:08:03.360 --> 0:08:08.040 that really got you excited as a general SaaS investor, Andrew. 0:08:07.720 --> 0:08:09.640 And ed from their earliest days they were walking to 0:08:09.680 --> 0:08:13.520 the beat of their own drum. They're pretty unconventional entrepreneurs, 0:08:13.640 --> 0:08:16.679 and that they were super focused on the customer, super 0:08:16.720 --> 0:08:20.560 focused on building products, not really interested in talking to investors. 0:08:20.880 --> 0:08:24.240 That's a different type of recipe and it really got 0:08:24.240 --> 0:08:26.200 me excited in the early days because they were so 0:08:26.560 --> 0:08:28.040 technology in product centric. 0:08:28.600 --> 0:08:31.440 John, Can I ask you how you're going to yourself 0:08:31.920 --> 0:08:35.040 transact in this listing and IPO? You know? Will you 0:08:35.120 --> 0:08:39.520 remain a long term investor of Klavier? Yeah? 0:08:39.520 --> 0:08:41.959 So, as an early stage investor, we sold eighteen percent, 0:08:42.040 --> 0:08:43.800 which was sort of a pro rad amount of the 0:08:43.800 --> 0:08:46.760 early stage investors here did. And I'm a really proud 0:08:46.760 --> 0:08:49.240 holder of the remaining sharedes there. I have absolutely no 0:08:49.280 --> 0:08:50.720 intention to sell anytime soon. 0:08:51.520 --> 0:08:54.040 You would note something I think that we discussed with 0:08:54.160 --> 0:08:57.640 Ryan that this is the first company in the space 0:08:58.280 --> 0:09:00.840 to go public for quite some time. Go to public 0:09:00.840 --> 0:09:03.520 in two years, we're talking SaaS enterprise call it what 0:09:03.559 --> 0:09:07.800 you will, automation. Does that signal anything more broadly to 0:09:07.880 --> 0:09:10.960 you about what's happened in the last two years the 0:09:11.040 --> 0:09:14.760 attitudes will hire multiple software companies. 0:09:15.760 --> 0:09:19.319 Yeah, sure, Obviously it's been a pretty long drive spell 0:09:19.360 --> 0:09:22.160 for software IPOs. But at the end of the day, 0:09:23.640 --> 0:09:26.000 the thing that hasn't changed on what's most important you 0:09:26.040 --> 0:09:29.400 pull the lems back here and the general tailwind for 0:09:29.600 --> 0:09:33.160 software automation throughout the economy, that's the thing that's not 0:09:33.240 --> 0:09:35.280 gone away. There's sort of no sign of any movement. 0:09:36.000 --> 0:09:40.400 It's happening as aggressively as it ever has and so 0:09:40.679 --> 0:09:43.040 for this is a good milestone. Clavey O to be 0:09:43.080 --> 0:09:44.840 the first one to go public. I think it says 0:09:44.880 --> 0:09:48.080 something about the quality of the company. But probably most importantly, 0:09:48.120 --> 0:09:51.160 there's nothing slowing down the demand for software as option. 0:09:51.840 --> 0:09:53.600 What's not slowing down at the moment is the hype 0:09:53.640 --> 0:09:56.760 around artificial intelligence too. John, how much has that had 0:09:56.800 --> 0:09:58.720 to become part of the business model and part of 0:09:58.720 --> 0:10:01.480 the messaging or do they not particularly adopt that? 0:10:02.480 --> 0:10:02.680 Oh? 0:10:02.720 --> 0:10:04.959 No, absolutely, I think I think the interesting thing with 0:10:05.000 --> 0:10:08.679 Clavio is that machine learning has always been at the 0:10:08.679 --> 0:10:12.280 core of the product, and so maybe messaging has been 0:10:12.280 --> 0:10:14.360 catching up a little bit lately with a business like 0:10:14.400 --> 0:10:16.320 this one over the last you know, six twelve months, 0:10:16.400 --> 0:10:18.920 but it's always been core to what the business does. 0:10:20.240 --> 0:10:23.120 John, we're indicated to open in between thirty six and 0:10:23.160 --> 0:10:26.240 thirty eight dollars. We priced at thirty. Just talkts me 0:10:26.280 --> 0:10:29.280 about the day itself and what you're feeling right now 0:10:29.320 --> 0:10:31.839 on the floor of the New York Stock Exchange. Oh, yes, 0:10:31.920 --> 0:10:33.560 an emotional day. I was looking around. 0:10:33.679 --> 0:10:37.079 We have three hundred Klavio's here today on the. 0:10:37.040 --> 0:10:38.400 Floor joining the celebration. 0:10:38.960 --> 0:10:41.880 A lot of ogs that I was catching hadn't seen 0:10:42.520 --> 0:10:44.920 in a long time. It's a special moment for that group. 0:10:44.960 --> 0:10:49.600 But as Andrew and Ed said recently this morning, they're 0:10:49.679 --> 0:10:52.200 kind of one percent done. That's always been their mantra. 0:10:52.240 --> 0:10:55.280 I wouldn't bet against them. 0:10:55.320 --> 0:10:58.120 Sean Colin, thank you for your time today. We'll let 0:10:58.160 --> 0:11:01.079 you get back to the celebrations and waiting to start trading. 0:11:01.640 --> 0:11:05.480 Okaian Software executive thank you, say, well, here's the chairman there. 0:11:05.520 --> 0:11:08.520 I meanwhile, look, we've been talking so much about AI 0:11:08.800 --> 0:11:11.400 and ultimately not only the hype factor, perhaps some of 0:11:11.480 --> 0:11:13.720 the risks and indeed the regulation I caught up earlier 0:11:13.920 --> 0:11:16.160 with a meta president of Global Affairs, that's Nick clegg 0:11:16.480 --> 0:11:18.880 As at a Concordia summit in New York City where 0:11:18.880 --> 0:11:21.760 we talked about all of those things, particularly also about 0:11:21.760 --> 0:11:24.480 the open source nature in which well Lama too in 0:11:24.520 --> 0:11:25.719 particular has been rolled out. 0:11:25.760 --> 0:11:26.360 Just take a listen. 0:11:27.280 --> 0:11:31.600 It's foundational technology. It's like an operating system. It's something 0:11:31.600 --> 0:11:34.280 which pervades everything, and lots of things will be built 0:11:34.320 --> 0:11:34.920 on top of it. 0:11:35.280 --> 0:11:37.880 Of course, you can never perfectly. 0:11:37.400 --> 0:11:40.720 Predict how it will be used, and you can't perfectly 0:11:40.720 --> 0:11:43.360 sort of litigate for that in advance, and no doubt 0:11:43.400 --> 0:11:45.360 there will be people who will try and use it 0:11:45.559 --> 0:11:46.640 for bad purposes. 0:11:46.920 --> 0:11:48.319 But in general it is. 0:11:48.320 --> 0:11:51.480 Accepted in the sector that open sourcing these things leads 0:11:51.520 --> 0:11:55.960 to safer models because you you can then openly look 0:11:55.960 --> 0:11:59.600 for vulnerabilities and fix them. And that's certainly the attitude 0:11:59.640 --> 0:12:03.400 that we believe is right at this stage on this 0:12:03.480 --> 0:12:05.320 great AI journey. Just take hate speech. 0:12:05.480 --> 0:12:07.080 The prevalence of hate speech. 0:12:06.800 --> 0:12:11.040 On Facebook now is down to about zero point zero 0:12:11.080 --> 0:12:13.240 two percent. And by that I'm not just making about 0:12:13.240 --> 0:12:17.080 that's stuff that we starts. We publish every every quarter, 0:12:17.400 --> 0:12:20.160 and they're audited by I think it's ey independently, so 0:12:20.200 --> 0:12:22.480 we're not just marking our own homework, so that every 0:12:22.520 --> 0:12:25.400 ten thousand bits of content that you'd see online on Facebook, 0:12:25.480 --> 0:12:28.600 two bits of content might be hate speech, and that 0:12:28.760 --> 0:12:32.400 is down by about fifty sixty percent over the last 0:12:32.440 --> 0:12:35.520 couple of years for one reason only AI, because our 0:12:35.559 --> 0:12:37.839 classifiers are just getting much better. So I think it's 0:12:37.880 --> 0:12:41.760 worth remembering, particularly you and I talked about this backstage, 0:12:41.880 --> 0:12:46.120 particularly in advance of all these hugely consequential elections which 0:12:46.160 --> 0:12:50.080 are happening next year in the US, Mexico, the European Union, 0:12:50.240 --> 0:12:54.920 possibly the UK, and so on. That yes, generative AI 0:12:55.160 --> 0:12:58.400 might enable bad people to try and generate bam and 0:12:58.400 --> 0:13:02.000 misleading content more quickly, also allows platforms like us to 0:13:02.040 --> 0:13:04.240 act against that much more quickly. So it is an 0:13:04.280 --> 0:13:08.080 adversarial space where where where hopefully, and that's our task. 0:13:08.280 --> 0:13:10.920 We you that we can use those tools more nimbly 0:13:11.240 --> 0:13:14.360 and more effective than our adversaries, So the sooner we 0:13:14.400 --> 0:13:16.959 can get beyond the kind of oh my gosh, is 0:13:17.000 --> 0:13:18.079 it going to be the end of the world kind 0:13:18.080 --> 0:13:20.520 of thing, which I think has a paralyzing effect on 0:13:20.559 --> 0:13:21.000 the debate. 0:13:21.720 --> 0:13:22.439 It doesn't. 0:13:22.480 --> 0:13:24.600 It's just going along and when there's bias in the 0:13:24.640 --> 0:13:25.280 here and now. 0:13:25.200 --> 0:13:26.880 And yes, I think there are a lot of here 0:13:26.920 --> 0:13:30.360 and now issues that we can deal with, whether it's elections, 0:13:30.400 --> 0:13:33.160 whether it's misinformation, whether it's transparency, whether it's provenance. 0:13:33.360 --> 0:13:33.560 And I. 0:13:35.360 --> 0:13:39.560 Certainly urge lawmakers to kind of, you know, fixate. 0:13:39.160 --> 0:13:40.760 On that matter. 0:13:40.840 --> 0:13:44.800 President of Global Affairs, Nick Klag, and we were really 0:13:44.800 --> 0:13:47.520 broad in. Nicklegg's someone who worked as a member of 0:13:47.520 --> 0:13:49.960 parliament in Europe, so he understands European Commission, you worn't there, 0:13:49.960 --> 0:13:51.199 who is a government official costs? 0:13:53.760 --> 0:13:56.000 He understands that. But what about China. 0:13:56.240 --> 0:13:59.920 Yeah, it's it's someper mind for every tech company large 0:14:00.120 --> 0:14:02.400 in the context of AI. So all our say is 0:14:02.520 --> 0:14:05.440 to our global bloombo technology audience, go and check out 0:14:05.480 --> 0:14:07.640 the full panel because China was one of the surprising 0:14:07.640 --> 0:14:18.960 elements of that conversation. Okay, time for talking tech. This 0:14:19.000 --> 0:14:21.200 is what we're seeing in the news. First up, WhatsApp 0:14:21.320 --> 0:14:23.960 users will now be able to pay for services in 0:14:23.960 --> 0:14:27.160 India using the app. Parent company Meta is expanding the 0:14:27.160 --> 0:14:31.000 feature to that country after launching it in Brazil and Singapore. 0:14:31.040 --> 0:14:34.800 Payments will be free for consumers, However, businesses will pay 0:14:34.840 --> 0:14:38.680 a processing fee similar to a credit card transaction, and 0:14:38.800 --> 0:14:41.560 Apple store workers in France have called for a national 0:14:41.640 --> 0:14:45.240 strike this weekend, right as the iPhone fifteen is set 0:14:45.280 --> 0:14:47.040 to go on sale. A group of unions are in 0:14:47.040 --> 0:14:50.720 pay negotiation talks with Apple France, pushing for a seven 0:14:50.720 --> 0:14:54.320 percent increase to offset inflation. Apple has offered a four 0:14:54.360 --> 0:14:57.240 point five percent increase. The company has not responded to 0:14:57.280 --> 0:15:00.480 our requests for comment plus US comments. Tech Retree Gena 0:15:00.560 --> 0:15:04.840 Raimondo is raising concerns over the speed and scale of 0:15:04.960 --> 0:15:09.520 China's technological advancements. During a congressional hearing Tuesday, Ramondo said 0:15:09.520 --> 0:15:12.400 the release of Huawei's Mate sixty pro phone with an 0:15:12.400 --> 0:15:15.880 advanced chip had upset her, but she also noticed that 0:15:15.920 --> 0:15:18.880 the US there's no evidence that China can make those phones. 0:15:19.120 --> 0:15:22.120 Components on mass Caroline. 0:15:21.640 --> 0:15:24.160 I mean, let's stick with that theme because the US 0:15:24.400 --> 0:15:28.080 isn't the only country suspicious and China technology, Huawei's technology, 0:15:28.080 --> 0:15:31.480 and particularly look, Germany's Interior ministry wants to ban key 0:15:31.560 --> 0:15:34.480 Huawei parts from its own five gen mobile network. Let's 0:15:34.480 --> 0:15:37.040 get the context. Makes Oliver crookers with us, and I. 0:15:37.080 --> 0:15:38.280 Mean, what's the stake? 0:15:38.320 --> 0:15:42.120 Heare how integral is Huawei to Germany's technology infrastructure. 0:15:42.760 --> 0:15:45.160 Well, one of the issues is they actually don't know. 0:15:45.280 --> 0:15:46.960 So this is a debate that dates back to the 0:15:47.000 --> 0:15:48.920 Merkele era, but the question of whether or not they 0:15:48.920 --> 0:15:51.360 would have wa Huawei in the five G network the 0:15:51.400 --> 0:15:53.920 Mercle era located. Of course, we all know a lot 0:15:54.000 --> 0:15:56.560 has changed since the Mercle era, particularly in the relationship 0:15:56.640 --> 0:15:57.160 with China. 0:15:57.400 --> 0:15:58.440 The problem is they. 0:15:58.360 --> 0:16:01.080 Don't know the volume of of hardware that is in 0:16:01.160 --> 0:16:03.080 this network and how dependent they are. So they launched 0:16:03.080 --> 0:16:05.440 an audit in the spring to try to figure that out, 0:16:05.760 --> 0:16:07.640 and the government didn't really keep track of it. So 0:16:07.640 --> 0:16:10.000 now we understand the Interior Ministry, as you say, is 0:16:10.040 --> 0:16:14.400 pushing to ban Huawei and ZTE from the five G network. 0:16:14.600 --> 0:16:17.480 This could be potentially a huge undertaking, particularly because they 0:16:17.480 --> 0:16:19.200 don't know how much of it there is. And this 0:16:19.280 --> 0:16:20.880 is all part of the d risking and this is 0:16:20.880 --> 0:16:22.840 a new category of D risking, all in the wake 0:16:22.880 --> 0:16:25.680 of the Russian invasion of Ukraine. You know Russian gas, 0:16:25.680 --> 0:16:27.320 but now it's really about Chinese tech. 0:16:28.160 --> 0:16:31.480 I've this is a technology and infrastructure story. I remember 0:16:31.480 --> 0:16:33.880 going through the five G supercycle in this country. In 0:16:33.920 --> 0:16:37.560 North America, took years of getting the infrastructure in place 0:16:37.600 --> 0:16:40.480 before there was any coverage at all. What's the timeline 0:16:40.520 --> 0:16:42.040 for Germany? You can't just say, you know what, we're 0:16:42.080 --> 0:16:43.680 not going to use that anymore, We're going to get 0:16:43.680 --> 0:16:44.480 over someone else. 0:16:45.200 --> 0:16:47.720 Well, it's betting a number of timelines, but one of 0:16:47.760 --> 0:16:50.040 them is get it all out by twenty twenty six. 0:16:50.120 --> 0:16:51.920 That's what we understand from some of the talks, which 0:16:51.920 --> 0:16:55.000 is a very abbreviated timeline, particularly for Germany, which is 0:16:55.040 --> 0:16:58.200 not particularly known for going at light speed for this 0:16:58.280 --> 0:17:00.360 sort of thing, this sort of thing. But again, the 0:17:00.400 --> 0:17:02.200 audit isn't done yet. It still needs to go through 0:17:02.240 --> 0:17:04.159 a number of other ministries and they're gonna have to 0:17:04.160 --> 0:17:07.280 consult with the network providers. But basically Deutsche Telecom has 0:17:07.280 --> 0:17:09.840 said this is totally unrealistic. The UK, which is trying 0:17:09.840 --> 0:17:12.200 to do something very similar, has set out a timeline 0:17:12.240 --> 0:17:14.560 from seven to ten years. But there's going to be 0:17:14.600 --> 0:17:17.359 really real a debate in weighing all the pros and cons. 0:17:17.359 --> 0:17:19.520 And again, a nation that is sort of behind in 0:17:19.560 --> 0:17:20.560 digital infrastructure. 0:17:21.400 --> 0:17:23.919 I mean, very briefly, who do they turn to if 0:17:23.920 --> 0:17:26.359 it's not Wawai Erikson, I mean, where are they getting 0:17:26.400 --> 0:17:27.840 the tech from. 0:17:27.640 --> 0:17:29.720 Yeah, it will be Ericson and Nokia, but that comes 0:17:29.800 --> 0:17:31.680 with a number of questions itself. Do they have the 0:17:31.760 --> 0:17:34.040 volume of material that they need in the amount of time, 0:17:34.240 --> 0:17:36.080 at what costs? You know, there are not a lot 0:17:36.080 --> 0:17:39.040 of cheap alternatives for Russian gas or Chinese tech. And 0:17:39.080 --> 0:17:41.480 the third question is really is the cost of development 0:17:41.560 --> 0:17:44.560 for the digital infrastructure in Germany. Germany has some of 0:17:44.560 --> 0:17:47.520 the lowest fiber penetration in all of Europe. We're talking 0:17:47.560 --> 0:17:50.520 about eight percent of households have fiber in Germany. It's 0:17:50.520 --> 0:17:53.040 fifty one percent in France and eighty one percent in Spain. 0:17:53.119 --> 0:17:55.040 So they're already behind and they need to play catch up. 0:17:55.359 --> 0:17:57.359 All right, Bloom bears out of a krookout in Germany. 0:17:57.400 --> 0:18:00.000 Good to catch up, thank you. Switching keys is very quick. 0:18:00.240 --> 0:18:03.720 Neuralink is taking the next steps to make science fiction 0:18:04.160 --> 0:18:07.320 closer to reality. The Brain Implants startup, led by Elon Musk, 0:18:07.680 --> 0:18:11.160 is seeking out patients in its first clinical trial. Neuralink 0:18:11.240 --> 0:18:14.840 is asking for people with quadripedia due to spinal cord 0:18:14.840 --> 0:18:17.199 injury or als and Caroline. This is a story that 0:18:17.240 --> 0:18:22.720 caught your eye. It is fast moving. They have the 0:18:22.800 --> 0:18:25.960 FDA exemption for an investigational device, and they have a 0:18:26.000 --> 0:18:28.760 hospital on board to perform the procedure. What do you 0:18:28.800 --> 0:18:28.960 make it? 0:18:29.080 --> 0:18:29.959 Going their hands up? 0:18:30.040 --> 0:18:31.639 And I mean, ultimately we know that there's been the 0:18:31.880 --> 0:18:33.440 view on animals, we're now looking. 0:18:33.200 --> 0:18:34.399 At real life impact. 0:18:34.720 --> 0:18:37.880 This is again an Elon Musk company, of which what's 0:18:37.880 --> 0:18:41.320 they're six or seven now, but really pushing technology forward 0:18:41.440 --> 0:18:45.480 in a deeply sort of untrodden space. And I think 0:18:45.520 --> 0:18:47.679 again it's just about the safety, the precautions that come 0:18:47.720 --> 0:18:50.399 into place, and ultimately who ends up driving forward this 0:18:50.440 --> 0:18:51.600 sort of technology that. 0:18:51.520 --> 0:18:54.760 The long term promise is to reverse the impacts of severe, 0:18:55.160 --> 0:18:57.960 severe brain and spinal injury. But in the first instance, 0:18:58.320 --> 0:19:00.800 Neuralink is talking about using the human brain with the 0:19:00.800 --> 0:19:03.600 implant to move a mouse cursor. Right. This is the 0:19:03.680 --> 0:19:06.080 kind of small steps that we're taking. But it was 0:19:06.240 --> 0:19:08.280 really interesting to see them say, okay, let's get on 0:19:08.320 --> 0:19:08.600 with it. 0:19:08.680 --> 0:19:11.160 Yeah, and I think in many ways ultificial intelligence again 0:19:11.320 --> 0:19:13.440 something that people are depending on in this particular area. 0:19:14.240 --> 0:19:15.600 Meanwhile, coming up, look, we've. 0:19:15.520 --> 0:19:17.480 Got so much to get back to in the world 0:19:17.480 --> 0:19:20.160 of IPO. Land Clavier, third major US listing this week, 0:19:20.200 --> 0:19:22.240 prepares to start training we'll break down the details of 0:19:22.280 --> 0:19:24.440 the IPO next, maybe or even get a price as 0:19:24.440 --> 0:19:45.520 in Bloembag Technology. Time now for work shifting. It's time 0:19:45.520 --> 0:19:47.359 that we look at the changing landscape of the labor 0:19:47.400 --> 0:19:49.440 market amid some advancers and technology. 0:19:49.440 --> 0:19:50.560 Today we're going to. 0:19:50.480 --> 0:19:52.360 Focus on how much more in depth you are at 0:19:52.359 --> 0:19:54.880 marketing and automation, in particular of the software that goes 0:19:54.880 --> 0:19:57.200 with it. Because Clavio is going public, what does the 0:19:57.240 --> 0:20:00.200 company do? As last Katie Rufe And really this is 0:20:00.240 --> 0:20:02.280 all about helping brands target you and I in the 0:20:02.280 --> 0:20:04.280 most efficient and effective manner, right. 0:20:05.760 --> 0:20:09.760 Sure, Yeah, So they do email marketing, text marketing. They 0:20:09.840 --> 0:20:14.919 work with brands from Unilever, they work with popular sunscreen 0:20:14.960 --> 0:20:19.000 brands Supergroup and Gen's brand Good American. They're helping reach 0:20:19.040 --> 0:20:22.040 out to their customers over email and text. 0:20:22.520 --> 0:20:25.679 Just remind our audience that Clavio indicators open at thirty 0:20:25.720 --> 0:20:28.600 six to thirty eight dollars a share. The ipoid priced 0:20:28.600 --> 0:20:31.880 at thirty dollars a share, Katie, been a busy week 0:20:31.920 --> 0:20:34.440 for you, busy ten days? You know? Where does this 0:20:34.520 --> 0:20:37.040 listing compare with those that have gone before? 0:20:38.200 --> 0:20:38.440 Yeah? 0:20:38.440 --> 0:20:41.200 And so it's interesting because all three of these big 0:20:41.240 --> 0:20:43.359 tech companies that are going public right now are in 0:20:43.560 --> 0:20:47.080 very distinct sub sectors within tech, and so there's talk 0:20:47.200 --> 0:20:51.119 about if Klavio goes well, that it could open up 0:20:51.160 --> 0:20:55.280 the window for the SaaS market. Obviously, enterprise software is 0:20:55.640 --> 0:20:59.000 a big part of what venture capitalists invest in in. 0:20:59.119 --> 0:21:01.359 For a while, we saw many companies going public in 0:21:01.400 --> 0:21:05.439 that category. Certainly Clavio is very different than many of 0:21:05.480 --> 0:21:08.520 those companies, but the closer we can get any sort 0:21:08.560 --> 0:21:13.160 of indication of investor public investor interest, you know, then 0:21:13.240 --> 0:21:17.280 that helps build confidence for those other companies that are 0:21:17.320 --> 0:21:18.400 preparing to go public. 0:21:18.680 --> 0:21:20.919 And I think pretty big Intelligence have done some great 0:21:20.960 --> 0:21:23.680 analysis really on the ultimate valuation that we're getting in 0:21:23.720 --> 0:21:26.479 this company at around about what nine billion wealthy You 0:21:26.640 --> 0:21:29.440 look at the thirty dollar price point, and that's kind 0:21:29.480 --> 0:21:31.199 of in line, if not a little bit toppy when 0:21:31.200 --> 0:21:34.000 you're looking at other software SaaS companies out there, the 0:21:34.040 --> 0:21:35.119 adobes of this world. 0:21:36.680 --> 0:21:40.720 So it's pretty large for a venture backed company going 0:21:40.760 --> 0:21:43.280 public that's in enterprise software. A lot of times we 0:21:43.359 --> 0:21:46.439 see companies in that category going public that are maybe 0:21:46.600 --> 0:21:50.480 one billion, two billion in in size, so I think 0:21:50.560 --> 0:21:53.040 it's actually would have been getting more attention, but it's 0:21:53.080 --> 0:21:56.560 been a little bit overshadowed by arm and Instacart, but 0:21:56.880 --> 0:21:59.840 it's a big company out of Boston, and people in 0:21:59.840 --> 0:22:01.479 the industry or watching this one closely. 0:22:01.720 --> 0:22:04.200 All right, Bloomberg's Katiereuth, thank you, and stay tune. Coming 0:22:04.280 --> 0:22:07.840 up on the show, Klaviyo's CEO, Andrew Bioleki is going 0:22:07.920 --> 0:22:10.439 to join us as soon as we get to the 0:22:10.440 --> 0:22:30.920 New York Stock Exchange. This is Bloombog Technology. Welcome back 0:22:30.920 --> 0:22:33.320 to Bloomberg Technology. I'm Caroline Hyde and I meed Loveo. 0:22:33.400 --> 0:22:36.520 We are standing by for Clavio to start trading. Indicated 0:22:36.640 --> 0:22:39.280 open thirty six thirty eight dollars a share. The IPO 0:22:39.640 --> 0:22:42.679 price at thirty dollars a share. Bloomberg Shnali Bassacus with 0:22:42.760 --> 0:22:45.119 us and has been lamenting off camera that after this 0:22:45.240 --> 0:22:48.080 IPO she's going to have to wait for another flood 0:22:48.080 --> 0:22:50.640 of IPOs. But tell us why you're watching this one 0:22:50.680 --> 0:22:51.199 so closely? 0:22:51.320 --> 0:22:52.160 A few reasons. 0:22:52.280 --> 0:22:54.679 One for the banks, it is a reopening for them 0:22:54.720 --> 0:22:58.080 as well. Remember they have not had any significant business 0:22:58.080 --> 0:23:00.560 besides ken You this year, and when you look at 0:23:00.600 --> 0:23:02.840 ken You, it's kind of traded sideways. So after this 0:23:02.920 --> 0:23:07.680 set of results or IPOs. Rather, you have these fairly 0:23:07.760 --> 0:23:10.399 significant pops for the market that we're in. But what 0:23:10.480 --> 0:23:14.240 happens to the window after that? Birkenstocks may have tried 0:23:14.280 --> 0:23:16.719 to list in the coming weeks, there could be some 0:23:16.800 --> 0:23:19.320 choppiness in the market, but it would really be q 0:23:19.440 --> 0:23:22.879 one until we see the next wave of listings SaaS 0:23:23.000 --> 0:23:25.399 or not. And so I think there's a lot of 0:23:25.400 --> 0:23:28.520 skepticism out there on how much the windows actually open 0:23:28.880 --> 0:23:30.720 after clavey Oh, but I don't want to take that 0:23:30.760 --> 0:23:33.280 away from Goldman Sachs and Morgan Stanley and City Group, 0:23:33.520 --> 0:23:36.520 which are the lead underwriters on this particular deal. Win 0:23:36.600 --> 0:23:40.280 for Nicy the last tour on Nasdak, so big win 0:23:40.359 --> 0:23:41.000 for those players. 0:23:41.040 --> 0:23:43.160 At the very least, let's go over to that nice 0:23:43.320 --> 0:23:46.000 Shanati Bessie. We thank you for that setup, because standing 0:23:46.000 --> 0:23:48.960 by at the New York Stock Exchange is Andrew Baielecki, 0:23:49.200 --> 0:23:51.960 Kavio's CEO. We don't want to take away this day 0:23:51.960 --> 0:23:54.959 from you. You're standing by waiting for the first trade. 0:23:55.280 --> 0:23:56.600 What has this wide been like here? 0:23:58.040 --> 0:23:59.320 Oh man, it's been a great day. 0:24:00.600 --> 0:24:04.560 Just so thankful for the fifteen hundred klaveyos around the world, 0:24:05.040 --> 0:24:07.520 one hundred and thirty thousand customers that have bet on us. 0:24:07.520 --> 0:24:09.760 We had some of our customers join us today on 0:24:09.800 --> 0:24:14.280 the floor. The five thousand partners we have. It's a 0:24:14.359 --> 0:24:16.760 very humbling experience. We're very excited about what we built. 0:24:17.400 --> 0:24:18.760 We're gonna have a little fun today and then we're 0:24:18.800 --> 0:24:20.240 excited to get back to work tomorrow. 0:24:20.359 --> 0:24:23.199 Andrew John Carlin, one of your first investors, joined us 0:24:23.280 --> 0:24:27.240 in the show. He spoke about how justified this opportunity 0:24:27.320 --> 0:24:30.320 is for your business. In particular, your stock is indicated 0:24:30.359 --> 0:24:33.119 to open between thirty six to thirty eight dollars a share, 0:24:33.480 --> 0:24:36.640 u ipo'ed at thirty dollars. How do those numbers make 0:24:36.720 --> 0:24:39.600 you feel? You know, we don't. 0:24:39.720 --> 0:24:42.280 We feel great about the business that we've built. And 0:24:42.359 --> 0:24:43.960 you know what, we don't don't spend a lot of 0:24:44.040 --> 0:24:46.280 time focusing on the stock price where it's going to 0:24:46.320 --> 0:24:49.840 keep focusing on customers, keep growing this business. We think 0:24:49.920 --> 0:24:53.040 we're very early. We've got a really durable business model 0:24:53.040 --> 0:24:55.399 and we're playing with some big macro trends. You know, 0:24:55.520 --> 0:24:58.800 businesses getting closer to their customers, building digital relationships with 0:24:58.840 --> 0:25:02.040 the data that they own, which is no long way 0:25:02.080 --> 0:25:02.320 to go. 0:25:02.640 --> 0:25:05.040 Talk about those one hundred and thirty thousand more than 0:25:05.320 --> 0:25:09.240 paying users and how much they want to see their 0:25:09.359 --> 0:25:12.520 marketing strategies really intensified by generative AI. 0:25:12.640 --> 0:25:13.760 It's interesting that that's been. 0:25:13.680 --> 0:25:16.280 The playbook of the last couple of IPOs. 0:25:16.480 --> 0:25:17.600 Is that something you've leant into. 0:25:17.680 --> 0:25:19.639 Is that a macro trend that was already there and 0:25:19.680 --> 0:25:20.960 you're embracing it earlier. 0:25:22.200 --> 0:25:25.400 Yeah, we've had a whole team dedicated to machine learning 0:25:25.400 --> 0:25:29.280 and AI for the last five or six years, so 0:25:29.359 --> 0:25:32.920 we're excited to use some of the large language model technology. 0:25:33.160 --> 0:25:39.359 I'll tell you customers like Tailor Made, Cord Brands, Unilever, Skims. 0:25:39.440 --> 0:25:42.080 We've got so many customers and we believe that the 0:25:42.119 --> 0:25:44.600 future of let's just take marketing as one application, the 0:25:44.640 --> 0:25:47.120 future is software that knows how to use itself. 0:25:47.920 --> 0:25:48.480 Take marketing. 0:25:48.560 --> 0:25:51.320 Instead of building a marketing campaign where a user, customer, 0:25:51.359 --> 0:25:54.600 marketer has to figure out what's the right design, I 0:25:54.600 --> 0:25:56.800 think the future is the software is going to help 0:25:56.840 --> 0:25:59.520 guide them so that they can be more successful, you know, 0:25:59.560 --> 0:26:01.639 aided by all of the data that we have the 0:26:01.680 --> 0:26:03.000 collective Clavio ecosystem. 0:26:03.480 --> 0:26:06.320 You know, and you note the data, but what is 0:26:06.359 --> 0:26:09.280 your technological point of difference. What is it that Klavio 0:26:09.400 --> 0:26:12.240 can do that no one else can? Sure? 0:26:12.359 --> 0:26:15.080 Yeah, we actually started Klavio as a database, a data 0:26:15.119 --> 0:26:18.880 infrastructure company, and we spend a lot of time architecting 0:26:18.880 --> 0:26:20.679 a database that is good at both the kind of 0:26:20.680 --> 0:26:23.440 machine learning analytical queries that folks run, but also the 0:26:23.520 --> 0:26:25.560 can power real time use cases like, for instance, what 0:26:25.600 --> 0:26:27.920 we do with messaging other marketing. 0:26:28.200 --> 0:26:29.280 So I think that's the future. 0:26:29.320 --> 0:26:31.879 I mean for us, we've thought about this database as 0:26:31.920 --> 0:26:35.920 kind of the brain of a business, and on top 0:26:35.960 --> 0:26:38.280 of that brain, you can build all these different software applications. 0:26:38.280 --> 0:26:40.119 So we built one with marketing. But Boil is a 0:26:40.160 --> 0:26:40.679 long way to go. 0:26:41.560 --> 0:26:44.399 Of course, they're a global company, one one thousand, five 0:26:44.440 --> 0:26:47.480 hundred employees here across eighty countries. If you're looking at 0:26:47.520 --> 0:26:50.480 your customers, where are you going to be deploying your 0:26:50.520 --> 0:26:51.679 newly raised money? 0:26:51.840 --> 0:26:54.639 Is it about talent? Is it about marketing? Where next? 0:26:55.640 --> 0:26:56.800 Well, it's always about talent. 0:26:56.800 --> 0:26:59.960 We're always looking for really driven folks to come join us. 0:27:01.000 --> 0:27:03.000 But yeah, I mean, you know, we have larger We 0:27:03.040 --> 0:27:05.720 started the business focus on small businesses. My co founder 0:27:05.760 --> 0:27:07.680 and I we have a lot of small businesses. Any 0:27:07.760 --> 0:27:10.040 in our families. What we found is Clay was actually 0:27:10.040 --> 0:27:13.040 a great fit for small businesses and large enterprises. So 0:27:13.080 --> 0:27:16.600 we're going to be moving up market and then international expansion. 0:27:16.920 --> 0:27:19.320 I'm so excited about all of the klaviers we have 0:27:19.440 --> 0:27:21.560 in our London office, our Citney office, all the way 0:27:21.560 --> 0:27:25.680 around the world. I think there are millions of businesses 0:27:25.680 --> 0:27:28.159 that should be running on Klavio, and we're excited to 0:27:28.160 --> 0:27:29.320 take our technology to more of them. 0:27:29.480 --> 0:27:32.240 Andrew, I appreciate that we haven't even started trading yet. 0:27:32.280 --> 0:27:34.080 I know that you're excited. You have a long day 0:27:34.080 --> 0:27:37.200 ahead of you, But what's his priority Number one when 0:27:37.240 --> 0:27:42.480 you wake up tomorrow to Klavier? Well, prior to probably 0:27:42.640 --> 0:27:44.120 might make my kids breakfast. 0:27:44.200 --> 0:27:48.760 But after that, you know, look where I have a 0:27:48.800 --> 0:27:50.600 lot of thank you notes to write, a lot of 0:27:50.600 --> 0:27:54.000 people to you know, celebrate. I've started doing some of 0:27:54.040 --> 0:27:57.560 that this afternoon. I'm just I'm so proud of what 0:27:57.680 --> 0:28:00.119 fifteen hundred people have put in over the last decade, 0:28:00.520 --> 0:28:02.000 and you know the best is yet to come. 0:28:02.400 --> 0:28:05.399 You're Boston based, so maybe you hotfoot it back on 0:28:05.440 --> 0:28:07.520 the East coast to wake up with the kids and 0:28:07.600 --> 0:28:10.200 have them breakfast. What does it mean for the Boston 0:28:10.280 --> 0:28:11.520 ecosystem here, Andrew. 0:28:12.680 --> 0:28:16.359 No, we're a global company. But you know, both my 0:28:16.400 --> 0:28:17.160 co founder. 0:28:16.920 --> 0:28:21.240 Ed and I we love the Boston ecosystem. And I've 0:28:21.280 --> 0:28:24.040 been so privileged to get to know a lot of 0:28:24.040 --> 0:28:27.240 the public company CEOs in Boston, in the you know, 0:28:27.280 --> 0:28:28.040 New England area. 0:28:28.320 --> 0:28:31.040 They've been so supportive of us. I am very. 0:28:30.880 --> 0:28:33.880 Excited, you know, in the next coming years, coming decades, 0:28:34.160 --> 0:28:36.040 to pay it forward. I think there are so many 0:28:36.040 --> 0:28:40.240 talented folks building in around Boston, and I'd love to 0:28:40.240 --> 0:28:40.560 help them. 0:28:40.560 --> 0:28:42.360 However I can. I'll give you a second there, and 0:28:42.440 --> 0:28:45.160 you just put your ear piece back in there. You go. Look. 0:28:45.400 --> 0:28:48.720 IPOs are all about numbers, Caroline and I obsess over them. 0:28:48.960 --> 0:28:51.600 But there's also this kind of public image side of 0:28:51.640 --> 0:28:55.280 the story. Have you already seen any traction from new 0:28:55.320 --> 0:28:57.720 customers that have engaged with you because of the big 0:28:57.760 --> 0:29:00.840 shiny IPA that you're doing. I think so. 0:29:01.080 --> 0:29:02.720 The way we think about it is that part of 0:29:02.720 --> 0:29:05.120 being a public company is showing the world you know, 0:29:05.160 --> 0:29:06.640 how you run your business and saying that you're going 0:29:06.680 --> 0:29:07.600 to be there for a long time. 0:29:07.680 --> 0:29:11.160 That's a big reason why we went public. Today. I've 0:29:11.200 --> 0:29:11.680 talked with so. 0:29:11.600 --> 0:29:13.440 Many of our customers said, we love what Clayo's doing. 0:29:13.440 --> 0:29:14.520 Are you guys going to be in it for the 0:29:14.520 --> 0:29:16.520 long run? And the answer is yes. And I think 0:29:16.560 --> 0:29:19.080 this moment is just another vote comp you know, another 0:29:19.120 --> 0:29:21.600 way to show that Yes, if you want to build 0:29:21.600 --> 0:29:23.760 a business, if you're in for the long run, we're 0:29:23.760 --> 0:29:25.880 there with you. We're going to help you grow, get 0:29:25.880 --> 0:29:29.360 closer to your customers, and whatever your dreams are. Our 0:29:29.360 --> 0:29:32.920 michievement is to help people own their destiny. We're just 0:29:33.360 --> 0:29:34.200 excited to keep doing it. 0:29:34.840 --> 0:29:37.720 You've got to own your investor base now, Andrew, And 0:29:37.960 --> 0:29:40.600 how do you feel that that narrative changes the way 0:29:40.640 --> 0:29:43.400 you run a business. The investors have been with you 0:29:43.440 --> 0:29:45.560 for an awfully long time. Do they stick with you? 0:29:45.600 --> 0:29:47.320 What sort of bias do you want to be seeing today? 0:29:48.680 --> 0:29:51.760 Yeah, you know, we've had ed and I have had 0:29:51.840 --> 0:29:54.280 a point of view on investors. You find people that 0:29:54.320 --> 0:29:57.400 believe in what you believe in. We believe in aiming 0:29:57.440 --> 0:30:01.560 long term, getting close to customers, being a disciplined company. 0:30:02.240 --> 0:30:05.920 I'm really excited for our public shareholders, you know, and 0:30:06.200 --> 0:30:08.800 to have them. And look, if you believe in those things, 0:30:08.840 --> 0:30:11.320 then you know we're gonna be excited to work with 0:30:11.520 --> 0:30:12.200 work with those folks. 0:30:12.640 --> 0:30:14.720 I'm gonna let you rip that earpiece out and hand 0:30:14.760 --> 0:30:17.560 it back so they can operate it now is We'll 0:30:17.600 --> 0:30:18.800 get you a bigger one next time. 0:30:18.880 --> 0:30:22.400 Andrew, Yeah, sorry bad, Yeah, you know you've. 0:30:22.280 --> 0:30:22.880 Been a joy. 0:30:23.200 --> 0:30:25.680 We thank you so much for joining us, and we're 0:30:25.680 --> 0:30:28.000 excited to see where the first trade takes you. Go 0:30:28.080 --> 0:30:31.240 back with the team, Andrew Bailecki, he's the Clavey CEO 0:30:31.440 --> 0:30:34.080 on the day of trade. Meanwhile, coming up, how a 0:30:34.200 --> 0:30:37.080 Danish medical software startup is competing with big tech giants 0:30:37.320 --> 0:30:40.360 the lucrative healthcare market, which will be funding but still 0:30:40.400 --> 0:30:43.280 not public yet. Corty CEO Andreas Cleve is going to 0:30:43.320 --> 0:30:45.360 be with us a tom A co partner as well. Laura' 0:30:45.400 --> 0:31:02.200 connell join us. Next, this is Bloomberg Technology. Let's talk 0:31:02.200 --> 0:31:04.720 about Corty. It's a Danish medical software startup. It's just 0:31:04.760 --> 0:31:07.560 raised sixty million dollars to sell an AI co pilot 0:31:07.640 --> 0:31:10.800 to more hospitals, basically compete with the likes of Microsoft, Amazon, 0:31:10.880 --> 0:31:14.120 other tech giants racing into the healthcare space. Let's bring in, 0:31:14.400 --> 0:31:17.640 of course, at CEO Andreas Cleeve as well as co 0:31:17.720 --> 0:31:20.880 found for the business and alongside the investor laura' connell, 0:31:21.000 --> 0:31:24.640 partner at Attomaca. We're sure we're helping with the fundraise here. 0:31:24.720 --> 0:31:28.160 And I start with you, Andreas, what exactly you bringing? 0:31:28.280 --> 0:31:31.760 How are you augmenting people who are going to treat 0:31:31.760 --> 0:31:34.480 people in hospitals? What is the copilot allowing them to do? 0:31:36.520 --> 0:31:36.640 So? 0:31:36.760 --> 0:31:37.560 Thanks for asking. 0:31:38.080 --> 0:31:41.920 We are augmenting the professional. So we're a tool that 0:31:42.200 --> 0:31:46.400 sits on the side of the patient and the professional 0:31:46.520 --> 0:31:50.160 as they have an interaction or a consultation. So imagine 0:31:50.200 --> 0:31:54.719 a small digtail assistant that, as the conversation progresses in 0:31:54.760 --> 0:31:56.600 real time, will be taking notes. 0:31:56.720 --> 0:31:58.200 We'll be journaling the conversation. 0:31:58.720 --> 0:32:01.880 We'll be comparing symptom descriptions to more than fifty million 0:32:01.920 --> 0:32:05.120 other patients. Will try to help the healthcare professionals steer 0:32:05.160 --> 0:32:08.240 the conversation to the best possible outcome with the least 0:32:08.280 --> 0:32:13.000 amount of administration burden happening afterwards. And hopefully, not only 0:32:13.040 --> 0:32:14.760 will that free up a ton of time, but it 0:32:14.800 --> 0:32:17.640 will also make sure that the professional has all the 0:32:17.680 --> 0:32:20.480 time to focus on the patient and not the paperwork 0:32:20.800 --> 0:32:23.360 while they're interacting. And I think all of us who 0:32:23.360 --> 0:32:25.840 have tried healthcare things that's really important. 0:32:26.040 --> 0:32:30.080 Laura, are you having lead Atomico's investment in Courty. You've 0:32:30.120 --> 0:32:33.760 got an AI focus, an enterprise SaaS focus, a fintech focus. 0:32:34.040 --> 0:32:35.720 What drew you towards. 0:32:35.280 --> 0:32:40.040 COURTI yeah, thank you for asking me. At Atomico, what 0:32:40.040 --> 0:32:42.360 we're most focused on is trying to invest in and 0:32:42.400 --> 0:32:44.760 back teams and founders who are really trying to solve 0:32:44.800 --> 0:32:47.680 some of the most important generational issues that we face. 0:32:48.040 --> 0:32:50.840 I think a few people disagree that healthcare and health 0:32:50.880 --> 0:32:53.480 tech is one of the key areas that we most 0:32:53.560 --> 0:32:55.720 need to fund, So we spent a lot of time 0:32:55.800 --> 0:32:58.280 looking at the full value chain and figuring out where 0:32:58.400 --> 0:33:00.320 along the value chain we thought that some of the 0:33:00.360 --> 0:33:03.120 latest elements in AI could most help not only in 0:33:03.200 --> 0:33:06.440 terms of improving patient care outcomes, but also in driving 0:33:06.480 --> 0:33:09.800 cost efficiency and revenue optimization for key hospital providers who, 0:33:09.880 --> 0:33:12.800 as we know, are buckling under the strains of inflation, 0:33:13.240 --> 0:33:17.400 resource constraints, and a frontline care worker health force that 0:33:17.600 --> 0:33:20.480 is really struggling with with things like burnout and depression 0:33:20.520 --> 0:33:21.240 post the COVID. 0:33:22.000 --> 0:33:24.959 You know, andreas AI that is the technology, but I'm 0:33:25.000 --> 0:33:27.840 actually just interested in the data. There are many giant 0:33:27.880 --> 0:33:32.680 technology companies working out how they can enter this healthcare space. 0:33:32.760 --> 0:33:35.560 I was in Cupertino last week at Apple. Right, theirs 0:33:35.600 --> 0:33:39.440 is more about emergency situation detection, but it's machine learning based. 0:33:39.880 --> 0:33:41.840 Do you look at the likes of Apple and worry 0:33:41.880 --> 0:33:45.000 that they similarly want to be a part of this 0:33:45.240 --> 0:33:47.840 healthcare process, the same part that you're occupying. 0:33:48.360 --> 0:33:51.560 I think it's exciting to see more big vendors entering 0:33:51.560 --> 0:33:54.360 the space, but I also think we've all now tried 0:33:54.880 --> 0:33:58.040 many of these new EI technologies and fund them lacking. 0:33:59.000 --> 0:34:02.440 And what we call with is a uniquely vertical AI system. 0:34:02.480 --> 0:34:05.240 And for the lay person, that means it's uniquely specialized 0:34:05.280 --> 0:34:08.640 in one thing, and that is actually healthcare interactions. And 0:34:08.680 --> 0:34:11.040 that's still unique because a lot of the big systems 0:34:11.040 --> 0:34:15.600 are still built for the horizontal use cases, the very average, 0:34:15.640 --> 0:34:19.120 everyday use cases, whereas we're very focused on this exact interaction. 0:34:19.480 --> 0:34:22.080 We're just going to pause this conversation for a moment. 0:34:22.120 --> 0:34:25.600 We have some breaking news of Klavio opening at thirty 0:34:25.600 --> 0:34:28.640 six dollars seventy five. We have the opening price for 0:34:28.680 --> 0:34:32.120 the initial public offering of Klavio. Thirty six dollars seventy 0:34:32.160 --> 0:34:34.920 five is currently where we trade so a big uplift 0:34:34.920 --> 0:34:38.080 from the thirty dollars where they priced now ultimately, and 0:34:38.160 --> 0:34:41.360 we are seeing once again a pop in the latest ipo. 0:34:41.480 --> 0:34:43.560 We've been sitting here wondering how Instacot was going to 0:34:43.560 --> 0:34:45.400 be performing. On the day they had a forty percent 0:34:45.440 --> 0:34:47.800 pop at the open. We know that ARM also traded 0:34:47.840 --> 0:34:52.080 significantly higher, but notably, we are seeing these companies taking 0:34:52.160 --> 0:34:54.719 advantage of this window and managing to line up the 0:34:54.719 --> 0:34:56.640 demand and the supply side. Once again, this is a 0:34:56.640 --> 0:35:01.680 company that had cornerstone investors, but perhaps more the more 0:35:01.840 --> 0:35:06.000 desirable a area road find us. I'm Shamali and Abigaild 0:35:06.120 --> 0:35:08.480 little standing by. Let's go to Abigail fest. He's just 0:35:08.560 --> 0:35:09.520 hey with the opening trade. 0:35:09.600 --> 0:35:12.000 Yeah, well, we have another exciting IPO here, the third 0:35:12.080 --> 0:35:13.960 large one in a week. Right now we have the 0:35:13.960 --> 0:35:17.400 shares of Klavio up twenty one percent, so really very positive, 0:35:17.400 --> 0:35:20.200 and of course it priced at thirty dollars that was 0:35:20.560 --> 0:35:24.280 above where they were initially marketing this ipo at twenty 0:35:24.280 --> 0:35:26.480 seven to twenty nine, and just today we saw a 0:35:26.480 --> 0:35:29.359 bunch of different ranges thirty six to thirty eight, from 0:35:29.400 --> 0:35:30.680 thirty four to thirty six. 0:35:31.000 --> 0:35:32.440 This ipo was thirty. 0:35:32.200 --> 0:35:34.759 Times over subscribed. So right now it seems very very 0:35:34.760 --> 0:35:37.040 successful evaluation. 0:35:36.480 --> 0:35:37.880 Of about eleven billion dollars. 0:35:37.920 --> 0:35:41.279 And of course you just had that wonderful interview with 0:35:41.360 --> 0:35:43.920 the CEO and the what some are calling bread and 0:35:43.960 --> 0:35:44.880 butter technology. 0:35:45.080 --> 0:35:46.879 This might be a good sense for next year. 0:35:46.880 --> 0:35:48.719 A lot of people are looking at these IPOs to 0:35:48.800 --> 0:35:52.360 see is it greasing the runway for next year, especially 0:35:52.400 --> 0:35:54.520 around technology IPOs. 0:35:54.520 --> 0:35:55.479 Now, on the other hand, it's. 0:35:55.400 --> 0:35:57.560 Interesting because we do, of course have the FED later today. 0:35:57.760 --> 0:36:00.680 We still have some inflation concerns. That's what's kept the 0:36:00.680 --> 0:36:04.000 IPO window largely closed this year. So we continue to 0:36:04.000 --> 0:36:06.759 have this big question of whether or not we are 0:36:06.800 --> 0:36:10.600 now seeing the reopening of the window successfully. Now we 0:36:10.640 --> 0:36:13.279 don't know that yet because while arm was very successful 0:36:13.280 --> 0:36:16.839 on its first day, it's traded back down there from Instacart, 0:36:16.920 --> 0:36:20.640 same thing yesterday, up about twelve percent now coming in 0:36:20.680 --> 0:36:23.360 a little bit, but overall very successful start here for 0:36:23.480 --> 0:36:26.240 claviow up twenty one percent. 0:36:26.800 --> 0:36:30.640 A Miguel Didle literally running to set breathlessly telling us 0:36:30.680 --> 0:36:33.400 about well the pulp that was seeing of twenty three percent. 0:36:33.640 --> 0:36:36.520 Shanali Besse has been standing by waiting for this opening. 0:36:36.600 --> 0:36:40.440 Trade and you know, this is once again about Cornerstone Investors. 0:36:40.440 --> 0:36:42.759 This is once again about limiting supply and ensuring that 0:36:42.800 --> 0:36:44.880 this has been really well managed by some of the banks. 0:36:45.040 --> 0:36:49.240 Yeah, the management of this IPO with a Cornerstone Investors Alliance, Bernstein, Blackrock. 0:36:49.280 --> 0:36:53.440 Remember top ten clients took fifty five percent of the 0:36:53.480 --> 0:36:56.200 deal while the top twenty five took eighty percent of 0:36:56.200 --> 0:36:59.279 the offering. That left roughly two hundred investors with no 0:36:59.360 --> 0:37:01.799 allocation at all. Yet you look at this, and that's 0:37:01.800 --> 0:37:04.520 according to Amy Or who has been reporting on this 0:37:04.680 --> 0:37:08.360 through Resources, eleven billion dollar company at the opening trade 0:37:08.400 --> 0:37:10.560 at thirty six seventy five, that is what you have 0:37:10.719 --> 0:37:13.520 Klavio now valued at in the market, give or take. 0:37:13.560 --> 0:37:15.759 You have it fluctuating slightly in the market. That twenty 0:37:15.800 --> 0:37:18.200 two percent pop that was less than what you saw 0:37:18.200 --> 0:37:21.359 at instacart, despite those two hundred investors getting no. 0:37:21.320 --> 0:37:23.520 Allocation at all. It will be interesting. 0:37:23.600 --> 0:37:25.760 Now we are just hours away from a FED decision, 0:37:26.080 --> 0:37:28.719 and so let's see where Klavio ends the day and 0:37:28.800 --> 0:37:30.799 goes into tomorrow. The end of this week is an 0:37:30.800 --> 0:37:34.600 important moment for both Klavio and instacart because now that 0:37:34.680 --> 0:37:38.640 these IPOs the pricing itself have gone so successfully, supply 0:37:38.719 --> 0:37:40.960 has been limited, big investors bought in. 0:37:41.680 --> 0:37:43.160 It will matter a lot to. 0:37:43.200 --> 0:37:45.719 These employees as well as these investors. 0:37:46.239 --> 0:37:49.400 The corner stone investors are important. But the IPO is 0:37:49.400 --> 0:37:51.719 a test of how much risk appetite there is out 0:37:51.719 --> 0:37:54.799 there for high muslciple software stock. You hear that the 0:37:54.800 --> 0:37:57.919 words of the Street, Will Street, is the risk appetite there. 0:37:58.200 --> 0:38:02.160 What's interesting is we're gonna want Instacart and Klavio post 0:38:02.480 --> 0:38:05.160 not too long from now the first set of earnings reports. 0:38:05.200 --> 0:38:08.040 Those will be very important landmarks for these companies because, 0:38:08.040 --> 0:38:09.880 as we've been talking about, there are really only a 0:38:09.920 --> 0:38:13.319 few more IPOs left this year, perhaps Birkenstocks, perhaps Truro, 0:38:13.440 --> 0:38:15.920 as you've been talking about Caroline, But it's really in 0:38:15.920 --> 0:38:17.680 the middle of next year early next year that you're 0:38:17.680 --> 0:38:19.319 going to see the bulk of these companies try to 0:38:19.320 --> 0:38:22.239 go public. Therefore, the results that these companies post and 0:38:22.280 --> 0:38:24.680 the investor appetite continuing on is important. 0:38:24.960 --> 0:38:28.520 Lastly, I would say for the employees, you just go to. 0:38:28.480 --> 0:38:30.799 The filings sec filings of Klavio and one of the 0:38:30.800 --> 0:38:33.120 things you see is the contract, the employment contract for 0:38:33.120 --> 0:38:35.720 the chief people officer they bought in and the stock 0:38:35.719 --> 0:38:37.920 options that she gets on the back of this as well. 0:38:38.160 --> 0:38:40.040 You think about all these companies. This was a company 0:38:40.080 --> 0:38:43.600 founded in twenty twelve. These companies employees have been locked 0:38:43.680 --> 0:38:46.480 up for a long time, so these stock listings are 0:38:46.640 --> 0:38:49.440 just as important for those employees as they are for these. 0:38:49.280 --> 0:38:50.360 New cornerstone investors. 0:38:50.400 --> 0:38:51.600 As we've been talking about. 0:38:51.520 --> 0:38:54.680 Okay, everyone's take a breath, bloodbagtion aali basic, thank you, 0:38:54.719 --> 0:38:56.080 and as she just knows, you's gonna have to wait 0:38:56.120 --> 0:39:00.520 a little while for another IPO anyway. Next up, Amazon 0:39:00.640 --> 0:39:03.880 is launching a revamped Echo Show eight smart home device, 0:39:04.080 --> 0:39:09.480 and updated Alexa with finally new generative AI features. That 0:39:09.600 --> 0:39:13.000 and much more was announced earlier today at Amazon's Product event, 0:39:13.080 --> 0:39:16.560 its first in person gadget unveiling since the pandemic, and 0:39:16.560 --> 0:39:19.880 we're delighted to bring in David lim, Senior vice president 0:39:19.920 --> 0:39:22.680 of Amazon Devices and Services, who's joining us from the 0:39:22.719 --> 0:39:26.680 company's new campus near Washington, DC. Dave, you and I 0:39:26.719 --> 0:39:29.040 have done so many interviews over the years, but you 0:39:29.120 --> 0:39:31.120 did announce that you would retire at the end of 0:39:31.160 --> 0:39:34.000 this year. We will get to that first off. That 0:39:34.160 --> 0:39:37.759 start with this generative AI integration into Alexa. How are 0:39:37.760 --> 0:39:39.560 you guys going to roll that out over the coming 0:39:39.600 --> 0:39:42.040 weeks and months because other tech companies have been so 0:39:42.200 --> 0:39:46.040 conservative about putting generative AI tools into the real world. 0:39:46.920 --> 0:39:48.560 Yeah, by the end of the year, we're going to 0:39:48.560 --> 0:39:51.920 offer a free preview to anybody that has an Alexa 0:39:52.040 --> 0:39:55.279 endpoint out there and Echo, and we're going to do 0:39:55.400 --> 0:39:57.560 that in a way that you can get into the 0:39:57.560 --> 0:40:00.279 experience a couple different ways. We're kind of reinvent doing 0:40:00.320 --> 0:40:03.640 how we do entertainment on Fire TV, We're doing some 0:40:03.719 --> 0:40:06.080 things in the smart home, and then we're offering a 0:40:06.160 --> 0:40:10.200 let's chat experience that is super conversational. We showed it 0:40:10.239 --> 0:40:13.719 on stage today and it's remarkable, and I think the 0:40:13.719 --> 0:40:16.920 big thing we were able to do is actually optimize 0:40:16.960 --> 0:40:19.399 a large language model and generator AI for the home, 0:40:19.880 --> 0:40:22.640 which is a very different environment than the tab of 0:40:22.680 --> 0:40:23.320 your browser. 0:40:23.920 --> 0:40:27.759 The emphasis is conversation and real world application. I told 0:40:27.800 --> 0:40:29.920 our audience on social media that you were coming on 0:40:30.000 --> 0:40:33.440 and we always take audience questions, Dave. One is a 0:40:33.880 --> 0:40:39.200 pretty straightforward one. Will Amazon use Alexa devices to listen 0:40:39.800 --> 0:40:42.520 in the home as part of training of the large 0:40:42.600 --> 0:40:46.280 language model that powers the generative AI tool. Of course, 0:40:46.360 --> 0:40:49.040 there is history here about data privacy. 0:40:49.280 --> 0:40:51.279 Of course, and you know, one of the things we 0:40:51.320 --> 0:40:54.520 emphasize today is that privacy is foundational to what we're 0:40:54.560 --> 0:40:57.839 doing here, and you know, take and so we give. 0:40:58.000 --> 0:40:59.960 The best way we do here is that we give 0:41:00.080 --> 0:41:03.400 controls to customers. If you want to delete all your utterances, 0:41:03.400 --> 0:41:05.880 there's a single button that will delete your entire history. 0:41:05.880 --> 0:41:08.160 If you want to delete your smart home history, there's 0:41:08.200 --> 0:41:10.720 a single button that allows you to delete that whole history. 0:41:11.200 --> 0:41:15.200 If you want a more personalized scenario and more personalized 0:41:15.239 --> 0:41:18.360 types of things so that it recognizes you and personalizes 0:41:18.400 --> 0:41:20.840 the stuff to your screen, then we do use that 0:41:20.920 --> 0:41:22.480 information to train the model. 0:41:22.719 --> 0:41:23.640 But if a. 0:41:23.640 --> 0:41:25.480 Customer doesn't want it to be personalized, they want a 0:41:25.520 --> 0:41:28.319 more generic version of Alexa, that's fine too, and we 0:41:28.360 --> 0:41:29.240 give them that control. 0:41:29.520 --> 0:41:32.799 I need it not to listen to my children, David. 0:41:32.640 --> 0:41:35.680 Meanwhile, I'm listening and to some of the news have 0:41:35.760 --> 0:41:39.239 been unveiled, and not only about new AI generator AI 0:41:39.320 --> 0:41:42.080 within Alexa and some of the new Echo show eight 0:41:42.239 --> 0:41:46.000 but a billion Alexa devices have been purchased. Can you 0:41:46.080 --> 0:41:48.960 just break down exactly what you mean by those one 0:41:49.000 --> 0:41:51.200 billion what kind of device is where how. 0:41:51.160 --> 0:41:54.680 When Yeah, we're talking about the number of devices connected 0:41:54.680 --> 0:41:57.400 to Alexa and that's approaching a billion, that's getting very 0:41:57.480 --> 0:42:01.040 very close. A bunch of those are echos. There are 0:42:01.040 --> 0:42:03.239 a bunch of third party devices as well that have 0:42:03.400 --> 0:42:06.120 Echo and Alexa inside of it, things like you know, 0:42:06.200 --> 0:42:09.839 BMW vehicles and so no smart speakers. And then there's 0:42:10.560 --> 0:42:13.360 over four hundred million smart home devices you know that 0:42:13.840 --> 0:42:16.719 have been connected to and so we're really seeing kind 0:42:16.760 --> 0:42:20.520 of a continued momentum, you know, and kind of lapping 0:42:20.560 --> 0:42:23.560 the pandemic. But we're still seeing this growth in engagement 0:42:23.760 --> 0:42:27.320 and growth in how people are using Alexa. 0:42:27.360 --> 0:42:31.000 I mean when you first launched the first device, the Kindle, 0:42:31.120 --> 0:42:33.239 just the amount of change that has gone on since then, 0:42:34.080 --> 0:42:36.560 and indeed the way that we want to stay informed 0:42:36.600 --> 0:42:39.120 we have become a way of the way our data 0:42:39.200 --> 0:42:41.799 is used and some of the regulatory environment, David, when 0:42:41.800 --> 0:42:45.160 you're launching new products that integrate very cutting edge technology, 0:42:45.200 --> 0:42:47.560 how are you thinking about the way in which regulation 0:42:47.840 --> 0:42:50.280 is going to be changing into that unveiling. 0:42:51.239 --> 0:42:53.960 Yeah, obviously we have to take into account laws. We're 0:42:53.960 --> 0:42:56.759 never going to build products and services that are going 0:42:56.800 --> 0:42:58.640 to break the laws. But when it comes to AI, 0:42:59.280 --> 0:43:02.960 the most important certain things. We build an AI that's responsible, 0:43:03.440 --> 0:43:07.960 that's safe, and that is trusted by customers, you know. 0:43:08.040 --> 0:43:10.560 And so what we've done, I think that's even more 0:43:10.680 --> 0:43:12.600 true when you're going to put this AI into your 0:43:12.680 --> 0:43:15.960 home in the form of Alexa versus if you were 0:43:16.000 --> 0:43:18.800 putting in you know, on your personal computer or elsewhere. 0:43:19.040 --> 0:43:22.320 And so we're doing a lot to build guardrails around 0:43:22.440 --> 0:43:25.319 our AI to make sure that it is as responsible 0:43:25.360 --> 0:43:27.719 as we know how to make it. And because we're 0:43:27.760 --> 0:43:30.399 interconnecting it to your home, we're also doing a lot 0:43:30.480 --> 0:43:33.560 to try to reduce this idea of hallucination. You know what, 0:43:33.800 --> 0:43:35.799 the last thing you want is for you or your 0:43:35.880 --> 0:43:38.080 kids to say, turn on the living room light and 0:43:38.200 --> 0:43:41.120 all of a sudden it turns on the garage door light. 0:43:41.239 --> 0:43:43.680 That assistant is not going to be used after a 0:43:43.719 --> 0:43:46.200 little bit longer. So we're we're spending a lot of 0:43:46.239 --> 0:43:46.960 time there as well. 0:43:47.480 --> 0:43:49.640 Dave. You know, I've lived in the United States for 0:43:49.640 --> 0:43:51.960 almost six years now. I've enjoyed these interviews with you 0:43:52.200 --> 0:43:56.320 talking about hardware and its role in the Alexa ecosystem. 0:43:56.880 --> 0:44:01.680 Bloomberg's reported that panos Pan a left Microsoft, where he 0:44:01.760 --> 0:44:04.800 led hardware and is joining Amazon. Are you able to 0:44:04.880 --> 0:44:07.719 confirm that's who's replacing you in any of your retirement 0:44:07.840 --> 0:44:09.440 plans by the end of the year. 0:44:10.719 --> 0:44:13.759 We don't have anything to share on that. Besides, it 0:44:13.920 --> 0:44:15.279 is true that by the end of the year, I 0:44:15.320 --> 0:44:16.600 will be retiring from Amazon. 0:44:16.680 --> 0:44:20.640 That I can confirm, okay, well, and you won't stay 0:44:20.680 --> 0:44:23.280 in technology. There's no Dave Limp startup on the horizon. 0:44:24.440 --> 0:44:26.120 I think the thing that I wrote it to the 0:44:26.200 --> 0:44:28.360 team is so I can certainly tell you. You know, 0:44:28.719 --> 0:44:31.879 I've been doing some version of this job for thirty years. 0:44:32.120 --> 0:44:34.520 I came straight out of undergraduate college. I went to Apple. 0:44:34.600 --> 0:44:36.120 I had such a good time there. I then went 0:44:36.160 --> 0:44:39.960 to Palm in other places, and so I think I 0:44:40.040 --> 0:44:42.160 do have another chapter in my life. It's just not 0:44:42.280 --> 0:44:43.799 going to be consumer electronics. 0:44:43.880 --> 0:44:46.360 But beyond that. I just asked you to stay tuned. 0:44:46.719 --> 0:44:49.800 Maybe venture calls you're as your capital just before this role. David, 0:44:50.080 --> 0:44:51.839 great to have some time with you. Thank you, David. 0:44:51.880 --> 0:44:53.960 Then for the time, Yeah, of course, Senior vice president 0:44:53.960 --> 0:44:55.400 of Amazon Devices and Services. 0:44:56.000 --> 0:44:58.240 Meanwhile, we want to dip back into what the IPO 0:44:58.360 --> 0:44:58.680 is up to. 0:44:59.080 --> 0:45:02.840 It's been such a busy couple of days when it 0:45:02.920 --> 0:45:05.960 comes to Nasak yesterday with Instagrat today it's New York 0:45:05.960 --> 0:45:06.640 Stock exchanges. 0:45:06.680 --> 0:45:07.160 Time to shine. 0:45:07.160 --> 0:45:10.359 We're seeing ultimately another pot Clavio going higher and now 0:45:10.560 --> 0:45:13.480 not as highs it have been indicated over all, certainly 0:45:13.920 --> 0:45:16.880 a notable twenty five percent increase. They are managing to 0:45:16.960 --> 0:45:19.480 plan these IPOs to the nth degree and. 0:45:19.640 --> 0:45:22.239 The first SaaS or enterprise or software name in two 0:45:22.360 --> 0:45:24.400 years and they trade at higher multiple. We have the 0:45:24.480 --> 0:45:27.400 fed later today, but we love an IPO. Shnilie Bassett 0:45:27.440 --> 0:45:29.800 laments that there won't be another one until Birkenstock, but 0:45:29.880 --> 0:45:31.320 it's been an amazing week. 0:45:31.560 --> 0:45:33.720 And just thinking it's not just about Birkenstock and retail. 0:45:33.760 --> 0:45:35.840 There's going to be so many other technology companies in 0:45:35.840 --> 0:45:38.160 the background. Remember speaking to Karen snow Over at Nazdek 0:45:38.160 --> 0:45:39.920 saying that there's aout one hundred and fifty seven companies 0:45:39.960 --> 0:45:44.360 that have filed, many of them technology as their root cause. 0:45:44.440 --> 0:45:47.040 So if the windows genuinely opened, we'll find out. 0:45:47.200 --> 0:45:47.600 We'll see. 0:45:47.920 --> 0:45:49.480 Well, for now, it looks as though we've got a 0:45:49.520 --> 0:45:51.120 surgeon training stick with us that does it. 0:45:51.160 --> 0:45:52.919 For this edition of Really mag Technology the Cat. 0:45:52.880 --> 0:45:56.120 The Show on our podcast, we Get It on the Terminal, Apple, Spotify, 0:45:56.440 --> 0:45:59.920 and iHeart from New York City. This is Bloomberg technology 0:46:00.840 --> 0:46:02.200 when people were healthy. 0:46:02.520 --> 0:46:03.920 When people are healthy,