Speaker 1: From Marhard where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed.
Speaker 3: Ludlove live from Bloomberg's World headquarters in New York.
Speaker 4: I'm Caroline Hyde and.
Speaker 2: I'm Ed Lovelow. This is Bloomberg Technology.
Speaker 4: Coming up.
Speaker 5: More IPO coverage ahead. Klavio becomes a third major US
Speaker 5: listing in a week. We sit down with the CEO
Speaker 5: and investors in the company.
Speaker 2: And Germany wants to ban key parts from Huawei for
Speaker 2: its five D mobile network as the country reviews its
Speaker 2: reliance on Chinese tech. We have more ahead.
Speaker 5: Plus, Amazon announces a new smart home device and a
Speaker 5: generative AI based Alexa.
Speaker 4: Will discuss the features with device chief David Limp.
Speaker 2: Yeah, let's get a check on the market. This will
Speaker 2: be quick because we're going nowhere on any asset class
Speaker 2: related to technology. Otherwise it is FED day. We will
Speaker 2: have special coverage of that FED decision later this afternoon.
Speaker 2: And basically the market sees them holding rates steady. You
Speaker 2: look at the n as that one hundred completely flat
Speaker 2: and now as that Gone Dragon index, it had been
Speaker 2: slightly out performing up a few tens one percent. We're
Speaker 2: going to be talking about US China relations in the
Speaker 2: context of tech later in the show, that of Europe
Speaker 2: as well, US tenure yield four point three percent, and
Speaker 2: then Bitcoin holding at twenty seven thousand US dollars per token.
Speaker 2: This is the definition Caroline of treading water ahead of
Speaker 2: a big FED decision.
Speaker 5: Yeah, all eyes on the macro. Just go micro for
Speaker 5: a moment. Though the individual stock movers are interesting, there
Speaker 5: are some updates coming from certain companies, and I'm looking
Speaker 5: at the likes of Intel, for example, has been well
Speaker 5: I mean pairing an earlier decline, but notably we are
Speaker 5: seeing it currently off by more.
Speaker 4: Than two percent.
Speaker 5: This is maybe that Invasion Day didn't live up to expectations.
Speaker 5: In particular, we wanted some color around eighteen A Chips,
Speaker 5: who are the customers?
Speaker 4: We didn't get that we're off by two percent?
Speaker 5: Apple, I highlight off by nineteen percent, Ubs saying the
Speaker 5: color on iPhone fifteen is at best in terms of
Speaker 5: some of the ultimate desire to be buying in and
Speaker 5: what are the backlogs looking like. Pinterest on the up
Speaker 5: more than four percent as it's investeday looks promising monetization
Speaker 5: there to be had.
Speaker 4: But what's on the downside kart. Let so I have
Speaker 4: a little look at.
Speaker 5: The latest IPO on the block that came yesterday. It
Speaker 5: is still higher over the last couple of days. Remember
Speaker 5: thirty two dollars twenty it is above we're at priced
Speaker 5: at thirty dollars.
Speaker 4: But we are coming off of that euphoric high.
Speaker 5: The pop was in excess of forty percent and then
Speaker 5: so ended the day down a twelve percent rise. Now
Speaker 5: we fade that a little bit more as just investors
Speaker 5: perhaps start to take a little bit of profit it.
Speaker 2: Let's stick with IPOs. It is the theme of the
Speaker 2: week of the show and get straight to the third
Speaker 2: major US listing in a week marketing in data horsemation
Speaker 2: provider Clavier joining us on set. Who else the man
Speaker 2: who runs to break news, Ryan gord I think we
Speaker 2: saw that Clavio indicated to open between thirty six to
Speaker 2: thirty eight dollars. The IPO priced at thirty dollars build
Speaker 2: up for US towards this listing.
Speaker 6: Yeah, I mean it's the second ipodprice the thirtieth share
Speaker 6: this week. Obviously Instacart price to thirty a share. I
Speaker 6: would say, you know you Caroline you've just brought attention
Speaker 6: to instacart. Is the is the sun coming up on IPOs?
Speaker 2: Maybe, but maybe.
Speaker 6: Maybe it's just not quite enough to know fully thaw
Speaker 6: the frost. And I think that's what we're hearing. It's,
Speaker 6: you know, let's see what happens today with Clavier. The
Speaker 6: quotes of thirty six thirty eight. Of course weak, there's
Speaker 6: going to be some shifting around there, but it was
Speaker 6: it seemed to be, you know, it's this, it's the
Speaker 6: third major offering in a week. There's clearly momentum. I
Speaker 6: spoke to Andrew this morning, Andrew Bilecki, co founder, and
Speaker 6: see you in a bit. He'll be on on shortly,
Speaker 6: and he said, you know, his claim is that if
Speaker 6: you're a company that has discipline, if you're a company
Speaker 6: that has good union economics, you can get out there
Speaker 6: and investors will listen to you. So I think it's
Speaker 6: a it's a it's a claim. I'm sure we'll see
Speaker 6: it in a while, but we're.
Speaker 5: About to go to a very long term investor whose
Speaker 5: real view is this is a company that has capital discipline.
Speaker 5: What's notable, it's all of these companies are pricing at
Speaker 5: the top end of the range, and so they're managing
Speaker 5: to lock in a decent amount of money, not leaving
Speaker 5: as much perhaps on the table as some worried armhad are. Ultimately,
Speaker 5: who are the players who wanting to get into these
Speaker 5: particular deals?
Speaker 4: Because Clavier is a.
Speaker 5: B to B player, Instacut much more retail focused. Do
Speaker 5: we know who's trying to buy in on first day?
Speaker 6: You know, it's a good question because when you think
Speaker 6: that Clavier is the first IPO pretty much in two
Speaker 6: years to come from the enterprise software sector, we're used
Speaker 6: to seeing this particular window prior to Thanksgiving being full
Speaker 6: of these companies. Obviously, let's take COVID out of the
Speaker 6: picture and think about twenty nineteen rather than twenty twenty one.
Speaker 6: But this is generally the type of class that we're
Speaker 6: expecting to see because they have the good fundamentals, they
Speaker 6: have the good unit economics, they have those kinds of
Speaker 6: those those headlines. Really that a lot of the big
Speaker 6: investors like t row so on, will you know, think about,
Speaker 6: you know, maybe in the future as being part of
Speaker 6: their part of the picture for them, But you know,
Speaker 6: as far as the retail side of the of it goes,
Speaker 6: I mean again, we're going to get another test probably
Speaker 6: in the next couple of weeks of Berking stock, so
Speaker 6: we can I would yeah, probably, As I say, the
Speaker 6: foster frost not fully thawed. Let's see what happens in
Speaker 6: a couple of weeks time.
Speaker 2: The excitement when we have an IPO window like this
Speaker 2: is why you have the employees who want some liquidity
Speaker 2: for their stock. You have the venture capitalists who are
Speaker 2: coming on the show talking about why they got in early,
Speaker 2: the bankers who'd bankrolling it. You know what's terrific about
Speaker 2: our deals team is you have this on the ground
Speaker 2: reporting is their genuine sustained excitement. In other words, do
Speaker 2: the sources that we speak to think the IPO window
Speaker 2: carries on or it's kind of a short lived euthoria ed.
Speaker 6: You know, I've been covering IPOs for a while, and
Speaker 6: the fact that people are now wanting to take calls
Speaker 6: to talk about IPOs probably tells us, you know, kind
Speaker 6: of where we're heading. It's just funny that you don't
Speaker 6: really have to find so much of an excuse anymore
Speaker 6: to bring up the idea that you know there's going
Speaker 6: to be a company ipoing. You had probably been laughed
Speaker 6: out the door. Maybe as recently as six months ago,
Speaker 6: but you know, back to the point I think about
Speaker 6: what drives it for some of these benure capital firms.
Speaker 6: Of course, you know, in Klavio's case, even it's still AI,
Speaker 6: it's you know, going long on machine learning. These are
Speaker 6: still the headline BuzzFeed, you know, buzz terms that you
Speaker 6: know really helped to push these these offerings. And you know,
Speaker 6: if you can get that in front of your investors
Speaker 6: on the road show and you know, really drill down
Speaker 6: into why you're going to be at the forefront of
Speaker 6: those trends, then you know they're all is all right.
Speaker 2: Bloombog's Ryan Gord, thank you, get out of here, go
Speaker 2: do some recording and joining us now. I'm absolutely delight,
Speaker 2: say Caroline John Carlin, Acadian Software executive chairman who was
Speaker 2: an investor in Klavyo in its series B and series D.
Speaker 2: And John, if you allow me, I just want to
Speaker 2: tell a bit of your story. You invested seven million
Speaker 2: dollars early twenty sixteen. At that time klavey O was
Speaker 2: ten people. Just explain to us in the audience what
Speaker 2: today means to you as one of the original backers.
Speaker 7: Oh, it's a huge milestone for me and more importantly
Speaker 7: for the company it was. It was always just an exceptional,
Speaker 7: unique company. The thing about Andrew and Eden team is
Speaker 7: that they were able to grow the business from the
Speaker 7: early stage without running big losses and never really need
Speaker 7: additional funding after that.
Speaker 2: So now to be here at the.
Speaker 7: Center of commerce the NYSC floor is kind of amazing
Speaker 7: given to the company was never really about raising huge
Speaker 7: amounts of money.
Speaker 2: In the early days.
Speaker 4: What it is about is SaaS. It's about software.
Speaker 5: It's about ensuring that it can help other companies get
Speaker 5: the right digital message out at the right time. John,
Speaker 5: how much are we seeing them having a moat in
Speaker 5: this particular instance. How much can they ensure that they
Speaker 5: rise above the competition now that they're public?
Speaker 7: Oh boy, I'll tell you what this is. There's a
Speaker 7: pretty significant mode here. The technology that this company has
Speaker 7: built from the earliest days has defended its pricing, has
Speaker 7: defended this and really been the engine behind this unbelievably
Speaker 7: efficient growth machine.
Speaker 2: John.
Speaker 5: We were just hearing a bit about your story, the
Speaker 5: fact that you believed in this company before anyone else.
Speaker 5: Ultimately ten people seven million checks. Following on with further checks.
Speaker 4: And the B the D round.
Speaker 5: What ultimately was the recipe for you? What you say,
Speaker 5: it's capital discipline, but there must have been something else
Speaker 5: that really got you excited as a general SaaS investor, Andrew.
Speaker 7: And ed from their earliest days they were walking to
Speaker 7: the beat of their own drum. They're pretty unconventional entrepreneurs,
Speaker 7: and that they were super focused on the customer, super
Speaker 7: focused on building products, not really interested in talking to investors.
Speaker 7: That's a different type of recipe and it really got
Speaker 7: me excited in the early days because they were so
Speaker 7: technology in product centric.
Speaker 2: John, Can I ask you how you're going to yourself
Speaker 2: transact in this listing and IPO? You know? Will you
Speaker 2: remain a long term investor of Klavier? Yeah?
Speaker 7: So, as an early stage investor, we sold eighteen percent,
Speaker 7: which was sort of a pro rad amount of the
Speaker 7: early stage investors here did. And I'm a really proud
Speaker 7: holder of the remaining sharedes there. I have absolutely no
Speaker 7: intention to sell anytime soon.
Speaker 2: You would note something I think that we discussed with
Speaker 2: Ryan that this is the first company in the space
Speaker 2: to go public for quite some time. Go to public
Speaker 2: in two years, we're talking SaaS enterprise call it what
Speaker 2: you will, automation. Does that signal anything more broadly to
Speaker 2: you about what's happened in the last two years the
Speaker 2: attitudes will hire multiple software companies.
Speaker 7: Yeah, sure, Obviously it's been a pretty long drive spell
Speaker 7: for software IPOs. But at the end of the day,
Speaker 7: the thing that hasn't changed on what's most important you
Speaker 7: pull the lems back here and the general tailwind for
Speaker 7: software automation throughout the economy, that's the thing that's not
Speaker 7: gone away. There's sort of no sign of any movement.
Speaker 7: It's happening as aggressively as it ever has and so
Speaker 7: for this is a good milestone. Clavey O to be
Speaker 7: the first one to go public. I think it says
Speaker 7: something about the quality of the company. But probably most importantly,
Speaker 7: there's nothing slowing down the demand for software as option.
Speaker 5: What's not slowing down at the moment is the hype
Speaker 5: around artificial intelligence too. John, how much has that had
Speaker 5: to become part of the business model and part of
Speaker 5: the messaging or do they not particularly adopt that?
Speaker 2: Oh?
Speaker 7: No, absolutely, I think I think the interesting thing with
Speaker 7: Clavio is that machine learning has always been at the
Speaker 7: core of the product, and so maybe messaging has been
Speaker 7: catching up a little bit lately with a business like
Speaker 7: this one over the last you know, six twelve months,
Speaker 7: but it's always been core to what the business does.
Speaker 2: John, we're indicated to open in between thirty six and
Speaker 2: thirty eight dollars. We priced at thirty. Just talkts me
Speaker 2: about the day itself and what you're feeling right now
Speaker 2: on the floor of the New York Stock Exchange. Oh, yes,
Speaker 2: an emotional day. I was looking around.
Speaker 7: We have three hundred Klavio's here today on the.
Speaker 2: Floor joining the celebration.
Speaker 7: A lot of ogs that I was catching hadn't seen
Speaker 7: in a long time. It's a special moment for that group.
Speaker 7: But as Andrew and Ed said recently this morning, they're
Speaker 7: kind of one percent done. That's always been their mantra.
Speaker 7: I wouldn't bet against them.
Speaker 5: Sean Colin, thank you for your time today. We'll let
Speaker 5: you get back to the celebrations and waiting to start trading.
Speaker 4: Okaian Software executive thank you, say, well, here's the chairman there.
Speaker 5: I meanwhile, look, we've been talking so much about AI
Speaker 5: and ultimately not only the hype factor, perhaps some of
Speaker 5: the risks and indeed the regulation I caught up earlier
Speaker 5: with a meta president of Global Affairs, that's Nick clegg
Speaker 5: As at a Concordia summit in New York City where
Speaker 5: we talked about all of those things, particularly also about
Speaker 5: the open source nature in which well Lama too in
Speaker 5: particular has been rolled out.
Speaker 4: Just take a listen.
Speaker 8: It's foundational technology. It's like an operating system. It's something
Speaker 8: which pervades everything, and lots of things will be built
Speaker 8: on top of it.
Speaker 4: Of course, you can never perfectly.
Speaker 8: Predict how it will be used, and you can't perfectly
Speaker 8: sort of litigate for that in advance, and no doubt
Speaker 8: there will be people who will try and use it
Speaker 8: for bad purposes.
Speaker 2: But in general it is.
Speaker 8: Accepted in the sector that open sourcing these things leads
Speaker 8: to safer models because you you can then openly look
Speaker 8: for vulnerabilities and fix them. And that's certainly the attitude
Speaker 8: that we believe is right at this stage on this
Speaker 8: great AI journey. Just take hate speech.
Speaker 2: The prevalence of hate speech.
Speaker 8: On Facebook now is down to about zero point zero
Speaker 8: two percent. And by that I'm not just making about
Speaker 8: that's stuff that we starts. We publish every every quarter,
Speaker 8: and they're audited by I think it's ey independently, so
Speaker 8: we're not just marking our own homework, so that every
Speaker 8: ten thousand bits of content that you'd see online on Facebook,
Speaker 8: two bits of content might be hate speech, and that
Speaker 8: is down by about fifty sixty percent over the last
Speaker 8: couple of years for one reason only AI, because our
Speaker 8: classifiers are just getting much better. So I think it's
Speaker 8: worth remembering, particularly you and I talked about this backstage,
Speaker 8: particularly in advance of all these hugely consequential elections which
Speaker 8: are happening next year in the US, Mexico, the European Union,
Speaker 8: possibly the UK, and so on. That yes, generative AI
Speaker 8: might enable bad people to try and generate bam and
Speaker 8: misleading content more quickly, also allows platforms like us to
Speaker 8: act against that much more quickly. So it is an
Speaker 8: adversarial space where where where hopefully, and that's our task.
Speaker 8: We you that we can use those tools more nimbly
Speaker 8: and more effective than our adversaries, So the sooner we
Speaker 8: can get beyond the kind of oh my gosh, is
Speaker 8: it going to be the end of the world kind
Speaker 8: of thing, which I think has a paralyzing effect on
Speaker 8: the debate.
Speaker 2: It doesn't.
Speaker 4: It's just going along and when there's bias in the
Speaker 4: here and now.
Speaker 8: And yes, I think there are a lot of here
Speaker 8: and now issues that we can deal with, whether it's elections,
Speaker 8: whether it's misinformation, whether it's transparency, whether it's provenance.
Speaker 2: And I.
Speaker 8: Certainly urge lawmakers to kind of, you know, fixate.
Speaker 4: On that matter.
Speaker 5: President of Global Affairs, Nick Klag, and we were really
Speaker 5: broad in. Nicklegg's someone who worked as a member of
Speaker 5: parliament in Europe, so he understands European Commission, you worn't there,
Speaker 5: who is a government official costs?
Speaker 4: He understands that. But what about China.
Speaker 2: Yeah, it's it's someper mind for every tech company large
Speaker 2: in the context of AI. So all our say is
Speaker 2: to our global bloombo technology audience, go and check out
Speaker 2: the full panel because China was one of the surprising
Speaker 2: elements of that conversation. Okay, time for talking tech. This
Speaker 2: is what we're seeing in the news. First up, WhatsApp
Speaker 2: users will now be able to pay for services in
Speaker 2: India using the app. Parent company Meta is expanding the
Speaker 2: feature to that country after launching it in Brazil and Singapore.
Speaker 2: Payments will be free for consumers, However, businesses will pay
Speaker 2: a processing fee similar to a credit card transaction, and
Speaker 2: Apple store workers in France have called for a national
Speaker 2: strike this weekend, right as the iPhone fifteen is set
Speaker 2: to go on sale. A group of unions are in
Speaker 2: pay negotiation talks with Apple France, pushing for a seven
Speaker 2: percent increase to offset inflation. Apple has offered a four
Speaker 2: point five percent increase. The company has not responded to
Speaker 2: our requests for comment plus US comments. Tech Retree Gena
Speaker 2: Raimondo is raising concerns over the speed and scale of
Speaker 2: China's technological advancements. During a congressional hearing Tuesday, Ramondo said
Speaker 2: the release of Huawei's Mate sixty pro phone with an
Speaker 2: advanced chip had upset her, but she also noticed that
Speaker 2: the US there's no evidence that China can make those phones.
Speaker 2: Components on mass Caroline.
Speaker 5: I mean, let's stick with that theme because the US
Speaker 5: isn't the only country suspicious and China technology, Huawei's technology,
Speaker 5: and particularly look, Germany's Interior ministry wants to ban key
Speaker 5: Huawei parts from its own five gen mobile network. Let's
Speaker 5: get the context. Makes Oliver crookers with us, and I.
Speaker 4: Mean, what's the stake?
Speaker 5: Heare how integral is Huawei to Germany's technology infrastructure.
Speaker 9: Well, one of the issues is they actually don't know.
Speaker 9: So this is a debate that dates back to the
Speaker 9: Merkele era, but the question of whether or not they
Speaker 9: would have wa Huawei in the five G network the
Speaker 9: Mercle era located. Of course, we all know a lot
Speaker 9: has changed since the Mercle era, particularly in the relationship
Speaker 9: with China.
Speaker 2: The problem is they.
Speaker 9: Don't know the volume of of hardware that is in
Speaker 9: this network and how dependent they are. So they launched
Speaker 9: an audit in the spring to try to figure that out,
Speaker 9: and the government didn't really keep track of it. So
Speaker 9: now we understand the Interior Ministry, as you say, is
Speaker 9: pushing to ban Huawei and ZTE from the five G network.
Speaker 9: This could be potentially a huge undertaking, particularly because they
Speaker 9: don't know how much of it there is. And this
Speaker 9: is all part of the d risking and this is
Speaker 9: a new category of D risking, all in the wake
Speaker 9: of the Russian invasion of Ukraine. You know Russian gas,
Speaker 9: but now it's really about Chinese tech.
Speaker 2: I've this is a technology and infrastructure story. I remember
Speaker 2: going through the five G supercycle in this country. In
Speaker 2: North America, took years of getting the infrastructure in place
Speaker 2: before there was any coverage at all. What's the timeline
Speaker 2: for Germany? You can't just say, you know what, we're
Speaker 2: not going to use that anymore, We're going to get
Speaker 2: over someone else.
Speaker 9: Well, it's betting a number of timelines, but one of
Speaker 9: them is get it all out by twenty twenty six.
Speaker 9: That's what we understand from some of the talks, which
Speaker 9: is a very abbreviated timeline, particularly for Germany, which is
Speaker 9: not particularly known for going at light speed for this
Speaker 9: sort of thing, this sort of thing. But again, the
Speaker 9: audit isn't done yet. It still needs to go through
Speaker 9: a number of other ministries and they're gonna have to
Speaker 9: consult with the network providers. But basically Deutsche Telecom has
Speaker 9: said this is totally unrealistic. The UK, which is trying
Speaker 9: to do something very similar, has set out a timeline
Speaker 9: from seven to ten years. But there's going to be
Speaker 9: really real a debate in weighing all the pros and cons.
Speaker 9: And again, a nation that is sort of behind in
Speaker 9: digital infrastructure.
Speaker 5: I mean, very briefly, who do they turn to if
Speaker 5: it's not Wawai Erikson, I mean, where are they getting
Speaker 5: the tech from.
Speaker 9: Yeah, it will be Ericson and Nokia, but that comes
Speaker 9: with a number of questions itself. Do they have the
Speaker 9: volume of material that they need in the amount of time,
Speaker 9: at what costs? You know, there are not a lot
Speaker 9: of cheap alternatives for Russian gas or Chinese tech. And
Speaker 9: the third question is really is the cost of development
Speaker 9: for the digital infrastructure in Germany. Germany has some of
Speaker 9: the lowest fiber penetration in all of Europe. We're talking
Speaker 9: about eight percent of households have fiber in Germany. It's
Speaker 9: fifty one percent in France and eighty one percent in Spain.
Speaker 9: So they're already behind and they need to play catch up.
Speaker 2: All right, Bloom bears out of a krookout in Germany.
Speaker 2: Good to catch up, thank you. Switching keys is very quick.
Speaker 2: Neuralink is taking the next steps to make science fiction
Speaker 2: closer to reality. The Brain Implants startup, led by Elon Musk,
Speaker 2: is seeking out patients in its first clinical trial. Neuralink
Speaker 2: is asking for people with quadripedia due to spinal cord
Speaker 2: injury or als and Caroline. This is a story that
Speaker 2: caught your eye. It is fast moving. They have the
Speaker 2: FDA exemption for an investigational device, and they have a
Speaker 2: hospital on board to perform the procedure. What do you
Speaker 2: make it?
Speaker 4: Going their hands up?
Speaker 5: And I mean, ultimately we know that there's been the
Speaker 5: view on animals, we're now looking.
Speaker 4: At real life impact.
Speaker 5: This is again an Elon Musk company, of which what's
Speaker 5: they're six or seven now, but really pushing technology forward
Speaker 5: in a deeply sort of untrodden space. And I think
Speaker 5: again it's just about the safety, the precautions that come
Speaker 5: into place, and ultimately who ends up driving forward this
Speaker 5: sort of technology that.
Speaker 2: The long term promise is to reverse the impacts of severe,
Speaker 2: severe brain and spinal injury. But in the first instance,
Speaker 2: Neuralink is talking about using the human brain with the
Speaker 2: implant to move a mouse cursor. Right. This is the
Speaker 2: kind of small steps that we're taking. But it was
Speaker 2: really interesting to see them say, okay, let's get on
Speaker 2: with it.
Speaker 5: Yeah, and I think in many ways ultificial intelligence again
Speaker 5: something that people are depending on in this particular area.
Speaker 4: Meanwhile, coming up, look, we've.
Speaker 5: Got so much to get back to in the world
Speaker 5: of IPO. Land Clavier, third major US listing this week,
Speaker 5: prepares to start training we'll break down the details of
Speaker 5: the IPO next, maybe or even get a price as
Speaker 5: in Bloembag Technology. Time now for work shifting. It's time
Speaker 5: that we look at the changing landscape of the labor
Speaker 5: market amid some advancers and technology.
Speaker 4: Today we're going to.
Speaker 5: Focus on how much more in depth you are at
Speaker 5: marketing and automation, in particular of the software that goes
Speaker 5: with it. Because Clavio is going public, what does the
Speaker 5: company do? As last Katie Rufe And really this is
Speaker 5: all about helping brands target you and I in the
Speaker 5: most efficient and effective manner, right.
Speaker 10: Sure, Yeah, So they do email marketing, text marketing. They
Speaker 10: work with brands from Unilever, they work with popular sunscreen
Speaker 10: brands Supergroup and Gen's brand Good American. They're helping reach
Speaker 10: out to their customers over email and text.
Speaker 2: Just remind our audience that Clavio indicators open at thirty
Speaker 2: six to thirty eight dollars a share. The ipoid priced
Speaker 2: at thirty dollars a share, Katie, been a busy week
Speaker 2: for you, busy ten days? You know? Where does this
Speaker 2: listing compare with those that have gone before?
Speaker 11: Yeah?
Speaker 10: And so it's interesting because all three of these big
Speaker 10: tech companies that are going public right now are in
Speaker 10: very distinct sub sectors within tech, and so there's talk
Speaker 10: about if Klavio goes well, that it could open up
Speaker 10: the window for the SaaS market. Obviously, enterprise software is
Speaker 10: a big part of what venture capitalists invest in in.
Speaker 10: For a while, we saw many companies going public in
Speaker 10: that category. Certainly Clavio is very different than many of
Speaker 10: those companies, but the closer we can get any sort
Speaker 10: of indication of investor public investor interest, you know, then
Speaker 10: that helps build confidence for those other companies that are
Speaker 10: preparing to go public.
Speaker 5: And I think pretty big Intelligence have done some great
Speaker 5: analysis really on the ultimate valuation that we're getting in
Speaker 5: this company at around about what nine billion wealthy You
Speaker 5: look at the thirty dollar price point, and that's kind
Speaker 5: of in line, if not a little bit toppy when
Speaker 5: you're looking at other software SaaS companies out there, the
Speaker 5: adobes of this world.
Speaker 10: So it's pretty large for a venture backed company going
Speaker 10: public that's in enterprise software. A lot of times we
Speaker 10: see companies in that category going public that are maybe
Speaker 10: one billion, two billion in in size, so I think
Speaker 10: it's actually would have been getting more attention, but it's
Speaker 10: been a little bit overshadowed by arm and Instacart, but
Speaker 10: it's a big company out of Boston, and people in
Speaker 10: the industry or watching this one closely.
Speaker 2: All right, Bloomberg's Katiereuth, thank you, and stay tune. Coming
Speaker 2: up on the show, Klaviyo's CEO, Andrew Bioleki is going
Speaker 2: to join us as soon as we get to the
Speaker 2: New York Stock Exchange. This is Bloombog Technology. Welcome back
Speaker 2: to Bloomberg Technology. I'm Caroline Hyde and I meed Loveo.
Speaker 2: We are standing by for Clavio to start trading. Indicated
Speaker 2: open thirty six thirty eight dollars a share. The IPO
Speaker 2: price at thirty dollars a share. Bloomberg Shnali Bassacus with
Speaker 2: us and has been lamenting off camera that after this
Speaker 2: IPO she's going to have to wait for another flood
Speaker 2: of IPOs. But tell us why you're watching this one
Speaker 2: so closely?
Speaker 4: A few reasons.
Speaker 12: One for the banks, it is a reopening for them
Speaker 12: as well. Remember they have not had any significant business
Speaker 12: besides ken You this year, and when you look at
Speaker 12: ken You, it's kind of traded sideways. So after this
Speaker 12: set of results or IPOs. Rather, you have these fairly
Speaker 12: significant pops for the market that we're in. But what
Speaker 12: happens to the window after that? Birkenstocks may have tried
Speaker 12: to list in the coming weeks, there could be some
Speaker 12: choppiness in the market, but it would really be q
Speaker 12: one until we see the next wave of listings SaaS
Speaker 12: or not. And so I think there's a lot of
Speaker 12: skepticism out there on how much the windows actually open
Speaker 12: after clavey Oh, but I don't want to take that
Speaker 12: away from Goldman Sachs and Morgan Stanley and City Group,
Speaker 12: which are the lead underwriters on this particular deal. Win
Speaker 12: for Nicy the last tour on Nasdak, so big win
Speaker 12: for those players.
Speaker 5: At the very least, let's go over to that nice
Speaker 5: Shanati Bessie. We thank you for that setup, because standing
Speaker 5: by at the New York Stock Exchange is Andrew Baielecki,
Speaker 5: Kavio's CEO. We don't want to take away this day
Speaker 5: from you. You're standing by waiting for the first trade.
Speaker 4: What has this wide been like here?
Speaker 2: Oh man, it's been a great day.
Speaker 11: Just so thankful for the fifteen hundred klaveyos around the world,
Speaker 11: one hundred and thirty thousand customers that have bet on us.
Speaker 11: We had some of our customers join us today on
Speaker 11: the floor. The five thousand partners we have. It's a
Speaker 11: very humbling experience. We're very excited about what we built.
Speaker 11: We're gonna have a little fun today and then we're
Speaker 11: excited to get back to work tomorrow.
Speaker 2: Andrew John Carlin, one of your first investors, joined us
Speaker 2: in the show. He spoke about how justified this opportunity
Speaker 2: is for your business. In particular, your stock is indicated
Speaker 2: to open between thirty six to thirty eight dollars a share,
Speaker 2: u ipo'ed at thirty dollars. How do those numbers make
Speaker 2: you feel? You know, we don't.
Speaker 11: We feel great about the business that we've built. And
Speaker 11: you know what, we don't don't spend a lot of
Speaker 11: time focusing on the stock price where it's going to
Speaker 11: keep focusing on customers, keep growing this business. We think
Speaker 11: we're very early. We've got a really durable business model
Speaker 11: and we're playing with some big macro trends. You know,
Speaker 11: businesses getting closer to their customers, building digital relationships with
Speaker 11: the data that they own, which is no long way
Speaker 11: to go.
Speaker 5: Talk about those one hundred and thirty thousand more than
Speaker 5: paying users and how much they want to see their
Speaker 5: marketing strategies really intensified by generative AI.
Speaker 4: It's interesting that that's been.
Speaker 5: The playbook of the last couple of IPOs.
Speaker 4: Is that something you've leant into.
Speaker 5: Is that a macro trend that was already there and
Speaker 5: you're embracing it earlier.
Speaker 11: Yeah, we've had a whole team dedicated to machine learning
Speaker 11: and AI for the last five or six years, so
Speaker 11: we're excited to use some of the large language model technology.
Speaker 11: I'll tell you customers like Tailor Made, Cord Brands, Unilever, Skims.
Speaker 11: We've got so many customers and we believe that the
Speaker 11: future of let's just take marketing as one application, the
Speaker 11: future is software that knows how to use itself.
Speaker 2: Take marketing.
Speaker 11: Instead of building a marketing campaign where a user, customer,
Speaker 11: marketer has to figure out what's the right design, I
Speaker 11: think the future is the software is going to help
Speaker 11: guide them so that they can be more successful, you know,
Speaker 11: aided by all of the data that we have the
Speaker 11: collective Clavio ecosystem.
Speaker 2: You know, and you note the data, but what is
Speaker 2: your technological point of difference. What is it that Klavio
Speaker 2: can do that no one else can? Sure?
Speaker 11: Yeah, we actually started Klavio as a database, a data
Speaker 11: infrastructure company, and we spend a lot of time architecting
Speaker 11: a database that is good at both the kind of
Speaker 11: machine learning analytical queries that folks run, but also the
Speaker 11: can power real time use cases like, for instance, what
Speaker 11: we do with messaging other marketing.
Speaker 2: So I think that's the future.
Speaker 11: I mean for us, we've thought about this database as
Speaker 11: kind of the brain of a business, and on top
Speaker 11: of that brain, you can build all these different software applications.
Speaker 2: So we built one with marketing. But Boil is a
Speaker 2: long way to go.
Speaker 5: Of course, they're a global company, one one thousand, five
Speaker 5: hundred employees here across eighty countries. If you're looking at
Speaker 5: your customers, where are you going to be deploying your
Speaker 5: newly raised money?
Speaker 4: Is it about talent? Is it about marketing? Where next?
Speaker 2: Well, it's always about talent.
Speaker 11: We're always looking for really driven folks to come join us.
Speaker 11: But yeah, I mean, you know, we have larger We
Speaker 11: started the business focus on small businesses. My co founder
Speaker 11: and I we have a lot of small businesses. Any
Speaker 11: in our families. What we found is Clay was actually
Speaker 11: a great fit for small businesses and large enterprises. So
Speaker 11: we're going to be moving up market and then international expansion.
Speaker 11: I'm so excited about all of the klaviers we have
Speaker 11: in our London office, our Citney office, all the way
Speaker 11: around the world. I think there are millions of businesses
Speaker 11: that should be running on Klavio, and we're excited to
Speaker 11: take our technology to more of them.
Speaker 2: Andrew, I appreciate that we haven't even started trading yet.
Speaker 2: I know that you're excited. You have a long day
Speaker 2: ahead of you, But what's his priority Number one when
Speaker 2: you wake up tomorrow to Klavier? Well, prior to probably
Speaker 2: might make my kids breakfast.
Speaker 11: But after that, you know, look where I have a
Speaker 11: lot of thank you notes to write, a lot of
Speaker 11: people to you know, celebrate. I've started doing some of
Speaker 11: that this afternoon. I'm just I'm so proud of what
Speaker 11: fifteen hundred people have put in over the last decade,
Speaker 11: and you know the best is yet to come.
Speaker 5: You're Boston based, so maybe you hotfoot it back on
Speaker 5: the East coast to wake up with the kids and
Speaker 5: have them breakfast. What does it mean for the Boston
Speaker 5: ecosystem here, Andrew.
Speaker 2: No, we're a global company. But you know, both my
Speaker 2: co founder.
Speaker 11: Ed and I we love the Boston ecosystem. And I've
Speaker 11: been so privileged to get to know a lot of
Speaker 11: the public company CEOs in Boston, in the you know,
Speaker 11: New England area.
Speaker 2: They've been so supportive of us. I am very.
Speaker 11: Excited, you know, in the next coming years, coming decades,
Speaker 11: to pay it forward. I think there are so many
Speaker 11: talented folks building in around Boston, and I'd love to
Speaker 11: help them.
Speaker 2: However I can. I'll give you a second there, and
Speaker 2: you just put your ear piece back in there. You go. Look.
Speaker 2: IPOs are all about numbers, Caroline and I obsess over them.
Speaker 2: But there's also this kind of public image side of
Speaker 2: the story. Have you already seen any traction from new
Speaker 2: customers that have engaged with you because of the big
Speaker 2: shiny IPA that you're doing. I think so.
Speaker 11: The way we think about it is that part of
Speaker 11: being a public company is showing the world you know,
Speaker 11: how you run your business and saying that you're going
Speaker 11: to be there for a long time.
Speaker 2: That's a big reason why we went public. Today. I've
Speaker 2: talked with so.
Speaker 11: Many of our customers said, we love what Clayo's doing.
Speaker 11: Are you guys going to be in it for the
Speaker 11: long run? And the answer is yes. And I think
Speaker 11: this moment is just another vote comp you know, another
Speaker 11: way to show that Yes, if you want to build
Speaker 11: a business, if you're in for the long run, we're
Speaker 11: there with you. We're going to help you grow, get
Speaker 11: closer to your customers, and whatever your dreams are. Our
Speaker 11: michievement is to help people own their destiny. We're just
Speaker 11: excited to keep doing it.
Speaker 5: You've got to own your investor base now, Andrew, And
Speaker 5: how do you feel that that narrative changes the way
Speaker 5: you run a business. The investors have been with you
Speaker 5: for an awfully long time. Do they stick with you?
Speaker 5: What sort of bias do you want to be seeing today?
Speaker 11: Yeah, you know, we've had ed and I have had
Speaker 11: a point of view on investors. You find people that
Speaker 11: believe in what you believe in. We believe in aiming
Speaker 11: long term, getting close to customers, being a disciplined company.
Speaker 11: I'm really excited for our public shareholders, you know, and
Speaker 11: to have them. And look, if you believe in those things,
Speaker 11: then you know we're gonna be excited to work with
Speaker 11: work with those folks.
Speaker 5: I'm gonna let you rip that earpiece out and hand
Speaker 5: it back so they can operate it now is We'll
Speaker 5: get you a bigger one next time.
Speaker 2: Andrew, Yeah, sorry bad, Yeah, you know you've.
Speaker 4: Been a joy.
Speaker 5: We thank you so much for joining us, and we're
Speaker 5: excited to see where the first trade takes you. Go
Speaker 5: back with the team, Andrew Bailecki, he's the Clavey CEO
Speaker 5: on the day of trade. Meanwhile, coming up, how a
Speaker 5: Danish medical software startup is competing with big tech giants
Speaker 5: the lucrative healthcare market, which will be funding but still
Speaker 5: not public yet. Corty CEO Andreas Cleve is going to
Speaker 5: be with us a tom A co partner as well. Laura'
Speaker 5: connell join us. Next, this is Bloomberg Technology. Let's talk
Speaker 5: about Corty. It's a Danish medical software startup. It's just
Speaker 5: raised sixty million dollars to sell an AI co pilot
Speaker 5: to more hospitals, basically compete with the likes of Microsoft, Amazon,
Speaker 5: other tech giants racing into the healthcare space. Let's bring in,
Speaker 5: of course, at CEO Andreas Cleeve as well as co
Speaker 5: found for the business and alongside the investor laura' connell,
Speaker 5: partner at Attomaca. We're sure we're helping with the fundraise here.
Speaker 5: And I start with you, Andreas, what exactly you bringing?
Speaker 5: How are you augmenting people who are going to treat
Speaker 5: people in hospitals? What is the copilot allowing them to do?
Speaker 1: So?
Speaker 2: Thanks for asking.
Speaker 1: We are augmenting the professional. So we're a tool that
Speaker 1: sits on the side of the patient and the professional
Speaker 1: as they have an interaction or a consultation. So imagine
Speaker 1: a small digtail assistant that, as the conversation progresses in
Speaker 1: real time, will be taking notes.
Speaker 2: We'll be journaling the conversation.
Speaker 1: We'll be comparing symptom descriptions to more than fifty million
Speaker 1: other patients. Will try to help the healthcare professionals steer
Speaker 1: the conversation to the best possible outcome with the least
Speaker 1: amount of administration burden happening afterwards. And hopefully, not only
Speaker 1: will that free up a ton of time, but it
Speaker 1: will also make sure that the professional has all the
Speaker 1: time to focus on the patient and not the paperwork
Speaker 1: while they're interacting. And I think all of us who
Speaker 1: have tried healthcare things that's really important.
Speaker 5: Laura, are you having lead Atomico's investment in Courty. You've
Speaker 5: got an AI focus, an enterprise SaaS focus, a fintech focus.
Speaker 4: What drew you towards.
Speaker 13: COURTI yeah, thank you for asking me. At Atomico, what
Speaker 13: we're most focused on is trying to invest in and
Speaker 13: back teams and founders who are really trying to solve
Speaker 13: some of the most important generational issues that we face.
Speaker 13: I think a few people disagree that healthcare and health
Speaker 13: tech is one of the key areas that we most
Speaker 13: need to fund, So we spent a lot of time
Speaker 13: looking at the full value chain and figuring out where
Speaker 13: along the value chain we thought that some of the
Speaker 13: latest elements in AI could most help not only in
Speaker 13: terms of improving patient care outcomes, but also in driving
Speaker 13: cost efficiency and revenue optimization for key hospital providers who,
Speaker 13: as we know, are buckling under the strains of inflation,
Speaker 13: resource constraints, and a frontline care worker health force that
Speaker 13: is really struggling with with things like burnout and depression
Speaker 13: post the COVID.
Speaker 2: You know, andreas AI that is the technology, but I'm
Speaker 2: actually just interested in the data. There are many giant
Speaker 2: technology companies working out how they can enter this healthcare space.
Speaker 2: I was in Cupertino last week at Apple. Right, theirs
Speaker 2: is more about emergency situation detection, but it's machine learning based.
Speaker 2: Do you look at the likes of Apple and worry
Speaker 2: that they similarly want to be a part of this
Speaker 2: healthcare process, the same part that you're occupying.
Speaker 1: I think it's exciting to see more big vendors entering
Speaker 1: the space, but I also think we've all now tried
Speaker 1: many of these new EI technologies and fund them lacking.
Speaker 1: And what we call with is a uniquely vertical AI system.
Speaker 1: And for the lay person, that means it's uniquely specialized
Speaker 1: in one thing, and that is actually healthcare interactions. And
Speaker 1: that's still unique because a lot of the big systems
Speaker 1: are still built for the horizontal use cases, the very average,
Speaker 1: everyday use cases, whereas we're very focused on this exact interaction.
Speaker 4: We're just going to pause this conversation for a moment.
Speaker 5: We have some breaking news of Klavio opening at thirty
Speaker 5: six dollars seventy five. We have the opening price for
Speaker 5: the initial public offering of Klavio. Thirty six dollars seventy
Speaker 5: five is currently where we trade so a big uplift
Speaker 5: from the thirty dollars where they priced now ultimately, and
Speaker 5: we are seeing once again a pop in the latest ipo.
Speaker 5: We've been sitting here wondering how Instacot was going to
Speaker 5: be performing. On the day they had a forty percent
Speaker 5: pop at the open. We know that ARM also traded
Speaker 5: significantly higher, but notably, we are seeing these companies taking
Speaker 5: advantage of this window and managing to line up the
Speaker 5: demand and the supply side. Once again, this is a
Speaker 5: company that had cornerstone investors, but perhaps more the more
Speaker 5: desirable a area road find us. I'm Shamali and Abigaild
Speaker 5: little standing by. Let's go to Abigail fest. He's just
Speaker 5: hey with the opening trade.
Speaker 14: Yeah, well, we have another exciting IPO here, the third
Speaker 14: large one in a week. Right now we have the
Speaker 14: shares of Klavio up twenty one percent, so really very positive,
Speaker 14: and of course it priced at thirty dollars that was
Speaker 14: above where they were initially marketing this ipo at twenty
Speaker 14: seven to twenty nine, and just today we saw a
Speaker 14: bunch of different ranges thirty six to thirty eight, from
Speaker 14: thirty four to thirty six.
Speaker 4: This ipo was thirty.
Speaker 14: Times over subscribed. So right now it seems very very
Speaker 14: successful evaluation.
Speaker 2: Of about eleven billion dollars.
Speaker 14: And of course you just had that wonderful interview with
Speaker 14: the CEO and the what some are calling bread and
Speaker 14: butter technology.
Speaker 2: This might be a good sense for next year.
Speaker 14: A lot of people are looking at these IPOs to
Speaker 14: see is it greasing the runway for next year, especially
Speaker 14: around technology IPOs.
Speaker 4: Now, on the other hand, it's.
Speaker 14: Interesting because we do, of course have the FED later today.
Speaker 14: We still have some inflation concerns. That's what's kept the
Speaker 14: IPO window largely closed this year. So we continue to
Speaker 14: have this big question of whether or not we are
Speaker 14: now seeing the reopening of the window successfully. Now we
Speaker 14: don't know that yet because while arm was very successful
Speaker 14: on its first day, it's traded back down there from Instacart,
Speaker 14: same thing yesterday, up about twelve percent now coming in
Speaker 14: a little bit, but overall very successful start here for
Speaker 14: claviow up twenty one percent.
Speaker 5: A Miguel Didle literally running to set breathlessly telling us
Speaker 5: about well the pulp that was seeing of twenty three percent.
Speaker 5: Shanali Besse has been standing by waiting for this opening.
Speaker 5: Trade and you know, this is once again about Cornerstone Investors.
Speaker 5: This is once again about limiting supply and ensuring that
Speaker 5: this has been really well managed by some of the banks.
Speaker 12: Yeah, the management of this IPO with a Cornerstone Investors Alliance, Bernstein, Blackrock.
Speaker 12: Remember top ten clients took fifty five percent of the
Speaker 12: deal while the top twenty five took eighty percent of
Speaker 12: the offering. That left roughly two hundred investors with no
Speaker 12: allocation at all. Yet you look at this, and that's
Speaker 12: according to Amy Or who has been reporting on this
Speaker 12: through Resources, eleven billion dollar company at the opening trade
Speaker 12: at thirty six seventy five, that is what you have
Speaker 12: Klavio now valued at in the market, give or take.
Speaker 12: You have it fluctuating slightly in the market. That twenty
Speaker 12: two percent pop that was less than what you saw
Speaker 12: at instacart, despite those two hundred investors getting no.
Speaker 4: Allocation at all. It will be interesting.
Speaker 12: Now we are just hours away from a FED decision,
Speaker 12: and so let's see where Klavio ends the day and
Speaker 12: goes into tomorrow. The end of this week is an
Speaker 12: important moment for both Klavio and instacart because now that
Speaker 12: these IPOs the pricing itself have gone so successfully, supply
Speaker 12: has been limited, big investors bought in.
Speaker 4: It will matter a lot to.
Speaker 12: These employees as well as these investors.
Speaker 2: The corner stone investors are important. But the IPO is
Speaker 2: a test of how much risk appetite there is out
Speaker 2: there for high muslciple software stock. You hear that the
Speaker 2: words of the Street, Will Street, is the risk appetite there.
Speaker 12: What's interesting is we're gonna want Instacart and Klavio post
Speaker 12: not too long from now the first set of earnings reports.
Speaker 12: Those will be very important landmarks for these companies because,
Speaker 12: as we've been talking about, there are really only a
Speaker 12: few more IPOs left this year, perhaps Birkenstocks, perhaps Truro,
Speaker 12: as you've been talking about Caroline, But it's really in
Speaker 12: the middle of next year early next year that you're
Speaker 12: going to see the bulk of these companies try to
Speaker 12: go public. Therefore, the results that these companies post and
Speaker 12: the investor appetite continuing on is important.
Speaker 4: Lastly, I would say for the employees, you just go to.
Speaker 12: The filings sec filings of Klavio and one of the
Speaker 12: things you see is the contract, the employment contract for
Speaker 12: the chief people officer they bought in and the stock
Speaker 12: options that she gets on the back of this as well.
Speaker 12: You think about all these companies. This was a company
Speaker 12: founded in twenty twelve. These companies employees have been locked
Speaker 12: up for a long time, so these stock listings are
Speaker 12: just as important for those employees as they are for these.
Speaker 4: New cornerstone investors.
Speaker 12: As we've been talking about.
Speaker 2: Okay, everyone's take a breath, bloodbagtion aali basic, thank you,
Speaker 2: and as she just knows, you's gonna have to wait
Speaker 2: a little while for another IPO anyway. Next up, Amazon
Speaker 2: is launching a revamped Echo Show eight smart home device,
Speaker 2: and updated Alexa with finally new generative AI features. That
Speaker 2: and much more was announced earlier today at Amazon's Product event,
Speaker 2: its first in person gadget unveiling since the pandemic, and
Speaker 2: we're delighted to bring in David lim, Senior vice president
Speaker 2: of Amazon Devices and Services, who's joining us from the
Speaker 2: company's new campus near Washington, DC. Dave, you and I
Speaker 2: have done so many interviews over the years, but you
Speaker 2: did announce that you would retire at the end of
Speaker 2: this year. We will get to that first off. That
Speaker 2: start with this generative AI integration into Alexa. How are
Speaker 2: you guys going to roll that out over the coming
Speaker 2: weeks and months because other tech companies have been so
Speaker 2: conservative about putting generative AI tools into the real world.
Speaker 15: Yeah, by the end of the year, we're going to
Speaker 15: offer a free preview to anybody that has an Alexa
Speaker 15: endpoint out there and Echo, and we're going to do
Speaker 15: that in a way that you can get into the
Speaker 15: experience a couple different ways. We're kind of reinvent doing
Speaker 15: how we do entertainment on Fire TV, We're doing some
Speaker 15: things in the smart home, and then we're offering a
Speaker 15: let's chat experience that is super conversational. We showed it
Speaker 15: on stage today and it's remarkable, and I think the
Speaker 15: big thing we were able to do is actually optimize
Speaker 15: a large language model and generator AI for the home,
Speaker 15: which is a very different environment than the tab of
Speaker 15: your browser.
Speaker 2: The emphasis is conversation and real world application. I told
Speaker 2: our audience on social media that you were coming on
Speaker 2: and we always take audience questions, Dave. One is a
Speaker 2: pretty straightforward one. Will Amazon use Alexa devices to listen
Speaker 2: in the home as part of training of the large
Speaker 2: language model that powers the generative AI tool. Of course,
Speaker 2: there is history here about data privacy.
Speaker 15: Of course, and you know, one of the things we
Speaker 15: emphasize today is that privacy is foundational to what we're
Speaker 15: doing here, and you know, take and so we give.
Speaker 15: The best way we do here is that we give
Speaker 15: controls to customers. If you want to delete all your utterances,
Speaker 15: there's a single button that will delete your entire history.
Speaker 15: If you want to delete your smart home history, there's
Speaker 15: a single button that allows you to delete that whole history.
Speaker 15: If you want a more personalized scenario and more personalized
Speaker 15: types of things so that it recognizes you and personalizes
Speaker 15: the stuff to your screen, then we do use that
Speaker 15: information to train the model.
Speaker 2: But if a.
Speaker 15: Customer doesn't want it to be personalized, they want a
Speaker 15: more generic version of Alexa, that's fine too, and we
Speaker 15: give them that control.
Speaker 4: I need it not to listen to my children, David.
Speaker 5: Meanwhile, I'm listening and to some of the news have
Speaker 5: been unveiled, and not only about new AI generator AI
Speaker 5: within Alexa and some of the new Echo show eight
Speaker 5: but a billion Alexa devices have been purchased. Can you
Speaker 5: just break down exactly what you mean by those one
Speaker 5: billion what kind of device is where how.
Speaker 15: When Yeah, we're talking about the number of devices connected
Speaker 15: to Alexa and that's approaching a billion, that's getting very
Speaker 15: very close. A bunch of those are echos. There are
Speaker 15: a bunch of third party devices as well that have
Speaker 15: Echo and Alexa inside of it, things like you know,
Speaker 15: BMW vehicles and so no smart speakers. And then there's
Speaker 15: over four hundred million smart home devices you know that
Speaker 15: have been connected to and so we're really seeing kind
Speaker 15: of a continued momentum, you know, and kind of lapping
Speaker 15: the pandemic. But we're still seeing this growth in engagement
Speaker 15: and growth in how people are using Alexa.
Speaker 5: I mean when you first launched the first device, the Kindle,
Speaker 5: just the amount of change that has gone on since then,
Speaker 5: and indeed the way that we want to stay informed
Speaker 5: we have become a way of the way our data
Speaker 5: is used and some of the regulatory environment, David, when
Speaker 5: you're launching new products that integrate very cutting edge technology,
Speaker 5: how are you thinking about the way in which regulation
Speaker 5: is going to be changing into that unveiling.
Speaker 15: Yeah, obviously we have to take into account laws. We're
Speaker 15: never going to build products and services that are going
Speaker 15: to break the laws. But when it comes to AI,
Speaker 15: the most important certain things. We build an AI that's responsible,
Speaker 15: that's safe, and that is trusted by customers, you know.
Speaker 15: And so what we've done, I think that's even more
Speaker 15: true when you're going to put this AI into your
Speaker 15: home in the form of Alexa versus if you were
Speaker 15: putting in you know, on your personal computer or elsewhere.
Speaker 15: And so we're doing a lot to build guardrails around
Speaker 15: our AI to make sure that it is as responsible
Speaker 15: as we know how to make it. And because we're
Speaker 15: interconnecting it to your home, we're also doing a lot
Speaker 15: to try to reduce this idea of hallucination. You know what,
Speaker 15: the last thing you want is for you or your
Speaker 15: kids to say, turn on the living room light and
Speaker 15: all of a sudden it turns on the garage door light.
Speaker 15: That assistant is not going to be used after a
Speaker 15: little bit longer. So we're we're spending a lot of
Speaker 15: time there as well.
Speaker 2: Dave. You know, I've lived in the United States for
Speaker 2: almost six years now. I've enjoyed these interviews with you
Speaker 2: talking about hardware and its role in the Alexa ecosystem.
Speaker 2: Bloomberg's reported that panos Pan a left Microsoft, where he
Speaker 2: led hardware and is joining Amazon. Are you able to
Speaker 2: confirm that's who's replacing you in any of your retirement
Speaker 2: plans by the end of the year.
Speaker 15: We don't have anything to share on that. Besides, it
Speaker 15: is true that by the end of the year, I
Speaker 15: will be retiring from Amazon.
Speaker 2: That I can confirm, okay, well, and you won't stay
Speaker 2: in technology. There's no Dave Limp startup on the horizon.
Speaker 15: I think the thing that I wrote it to the
Speaker 15: team is so I can certainly tell you. You know,
Speaker 15: I've been doing some version of this job for thirty years.
Speaker 15: I came straight out of undergraduate college. I went to Apple.
Speaker 15: I had such a good time there. I then went
Speaker 15: to Palm in other places, and so I think I
Speaker 15: do have another chapter in my life. It's just not
Speaker 15: going to be consumer electronics.
Speaker 2: But beyond that. I just asked you to stay tuned.
Speaker 4: Maybe venture calls you're as your capital just before this role. David,
Speaker 4: great to have some time with you. Thank you, David.
Speaker 5: Then for the time, Yeah, of course, Senior vice president
Speaker 5: of Amazon Devices and Services.
Speaker 4: Meanwhile, we want to dip back into what the IPO
Speaker 4: is up to.
Speaker 5: It's been such a busy couple of days when it
Speaker 5: comes to Nasak yesterday with Instagrat today it's New York
Speaker 5: Stock exchanges.
Speaker 4: Time to shine.
Speaker 5: We're seeing ultimately another pot Clavio going higher and now
Speaker 5: not as highs it have been indicated over all, certainly
Speaker 5: a notable twenty five percent increase. They are managing to
Speaker 5: plan these IPOs to the nth degree and.
Speaker 2: The first SaaS or enterprise or software name in two
Speaker 2: years and they trade at higher multiple. We have the
Speaker 2: fed later today, but we love an IPO. Shnilie Bassett
Speaker 2: laments that there won't be another one until Birkenstock, but
Speaker 2: it's been an amazing week.
Speaker 5: And just thinking it's not just about Birkenstock and retail.
Speaker 5: There's going to be so many other technology companies in
Speaker 5: the background. Remember speaking to Karen snow Over at Nazdek
Speaker 5: saying that there's aout one hundred and fifty seven companies
Speaker 5: that have filed, many of them technology as their root cause.
Speaker 2: So if the windows genuinely opened, we'll find out.
Speaker 4: We'll see.
Speaker 5: Well, for now, it looks as though we've got a
Speaker 5: surgeon training stick with us that does it.
Speaker 4: For this edition of Really mag Technology the Cat.
Speaker 2: The Show on our podcast, we Get It on the Terminal, Apple, Spotify,
Speaker 2: and iHeart from New York City. This is Bloomberg technology
Speaker 2: when people were healthy.
Speaker 5: When people are healthy,