Speaker 1: We're from Marhart where Innovation, Money and power Collie in
Speaker 1: Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed Ludlow.
Speaker 2: I'm Caroline Hyde at Bloomberg's World headquarters in New York
Speaker 2: and Imed Ludlow in San Francisco.
Speaker 3: This is Bloomberg Technology.
Speaker 2: Coming up, we'll discuss the state of the crypto market
Speaker 2: tech managers with us the CEO and founder of bitcoin
Speaker 2: payment app Strike.
Speaker 4: And we'll look at how artificial intelligence is changing the
Speaker 4: labor force, especially for the heavy hit tech industry, which
Speaker 4: has already lost two hundred thousand employees this year due
Speaker 4: to layoffs.
Speaker 5: And let's talk more about AI.
Speaker 2: We'll break down the Bloomberg big take on how Silicon
Speaker 2: Valley is playing catch up with Microsoft when it comes
Speaker 2: to the dominance in artificial intelligence. That says the tech
Speaker 2: giant nears a new record high a stock. I know
Speaker 2: you're going to be diving into ED, but first let's
Speaker 2: go a little bit broader to two crypto lenders links
Speaker 2: in South Korea. They've holded withdrawals in quick successions, sparking
Speaker 2: of course for the deja vu here the termal the
Speaker 2: market faced Celsius, for example, back in twenty twenty two.
Speaker 5: However, investors seem to be shrugging off.
Speaker 2: The risk of contagion, joining us for insight someone who
Speaker 2: knows bitcoin really well. Digital asset market make of course,
Speaker 2: Jackmanners Strike, founder and CEO Strike, a mobile payments app
Speaker 2: that uses Bitcoin network to facilitate fast, cheap global transactions
Speaker 2: and actually allows users to send receive money currency including bitcoin,
Speaker 2: without intermediaries, without fees. I'm interested, in particular your own
Speaker 2: move to self custody, Jack of late, Is this, yes,
Speaker 2: about reducing counterparty risk? I understand there's a lot of
Speaker 2: benefits to being your own custody, some of the products
Speaker 2: that you can therefore offer your customers. But how much
Speaker 2: does that reflect some of the worry in the ecosystem
Speaker 2: at large?
Speaker 1: First of all, Hello, nice to see you both. I
Speaker 1: hope you missed me.
Speaker 3: Yeah.
Speaker 1: So the vision for the company we believe strictly in bitcoin.
Speaker 1: We think, and I think personally that bitcoin is the
Speaker 1: innovation of digital currency, of cryptocurrency, of blockchain. There's bitcoin
Speaker 1: and there's everything else, and so US as a company,
Speaker 1: we're laser focused on being a global Bitcoin provider and
Speaker 1: providing financially impressive tools on top of the tech, and
Speaker 1: so we made a move to take all of our custody,
Speaker 1: a lot of our KYC process in house. We do
Speaker 1: not want to work with other parties because we want
Speaker 1: to do it the best in the world. So we've
Speaker 1: been it's a really long process to get all of
Speaker 1: the licenses and comply with regulation to be a money
Speaker 1: service business in the United States, and we're really proud
Speaker 1: to take all that in house so that we could
Speaker 1: be the best in the world at bitcoin not crypto.
Speaker 1: And that's why because we think we could do it
Speaker 1: better than everybody else, but we're going to do it ourselves.
Speaker 4: Jack, Good morning to you from San Francisco. Bitcoin and
Speaker 4: not create. So it's really interesting our crypto team here
Speaker 4: at Bloomberg. We're writing overnight that crypto share a bitcoin
Speaker 4: sorry share of the total crypto market is at a
Speaker 4: twenty month high, and there's a lot of caution about
Speaker 4: the broader market away from bitcoin.
Speaker 3: What does that tell you?
Speaker 1: It tells me that markets are efficient, that the world
Speaker 1: is figuring out where true innovation orhere true value is.
Speaker 1: I mean, if I'm being honest with you, guys, crypto
Speaker 1: is worth zero. It's just not realized as that yet,
Speaker 1: which takes time. This is a new industry, it's a
Speaker 1: new technology. But I think everyone's waking up to the
Speaker 1: fact that the only thing that delivered a technical innovation
Speaker 1: and made conscious ground forward for humanity as far as
Speaker 1: money is a technology is Bitcoin, and regulators are realizing that,
Speaker 1: speculators are realizing that, hedge funds are realizing that, businesses
Speaker 1: are realizing that, and so I don't know if.
Speaker 3: That's what that means.
Speaker 1: The number still seems a bit off because it's not
Speaker 1: one hundred percent bitcoin, but I think the world could
Speaker 1: take its time.
Speaker 3: It's okay.
Speaker 5: I don't know, Jack.
Speaker 2: Many would say smart contracts as a signal development. Many
Speaker 2: people would like eath, even if perhaps some of the
Speaker 2: smaller old coins at the moment are under some concerns
Speaker 2: around overall regulatory impact. I'm interested, though, Jack, like many
Speaker 2: would say, Look, where is the real use case at
Speaker 2: the moment for many of these old coins and other
Speaker 2: areas of crypto. Your use case of bitcoin largely is
Speaker 2: it remittance? And how much are we seeing that being
Speaker 2: adopted by the emerging markets where many do see rampant inflation.
Speaker 2: That's really what the calling of bitcoin has been for
Speaker 2: many Yeah, I mean.
Speaker 1: We let customers buying sell bitcoin, and we use the
Speaker 1: technology to improve payments. I mean you're talking about there's
Speaker 1: a digital public infrastructure for payments. It's going to a moment
Speaker 1: of silence for that. That's insane. Wift is not public
Speaker 1: infrastructure for the world. Visas not public infrastructure for the world.
Speaker 1: It's like a park that we all share, a public
Speaker 1: utility that we get to all utilize for the benefits
Speaker 1: of our own lives. It's owned by no one, accessible
Speaker 1: by everyone. We're taking new digital public infrastructure, which, by
Speaker 1: the way, guys think of it like the Internet. The
Speaker 1: Internet is global, open, public infrastructure for the world to
Speaker 1: communicate really really powerful thing, really really enhanced humanity, really
Speaker 1: changed lives, and really empowered fundamental human rights and human freedoms,
Speaker 1: creamous speech. Bitcoin is very similar for money and for
Speaker 1: property rights, and so we use digital public infrastructure to
Speaker 1: make financial transactions faster, cheaper, more global, more inclusive. It's
Speaker 1: really cool stuff. And I don't think it's that complicated
Speaker 1: your smart contract comment, I want to get to because
Speaker 1: I think it's super simple, it's super known, it's super understood,
Speaker 1: it's very sound and yeah, that's exactly what we do.
Speaker 3: Jack, We appreciate it.
Speaker 4: We don't have time for moments of silence on this program.
Speaker 4: It's a limited show with commercial breaks. Let's talk about
Speaker 4: real world use cases and also the kind of competitive
Speaker 4: landscape with strike. I noticed that coinbase announced a partnership
Speaker 4: with blocks. Bit Key itself is about the use of
Speaker 4: self custody. Wallet's recognize that as competition. What do you
Speaker 4: make of that partnership in the context of the work
Speaker 4: you're doing.
Speaker 6: No.
Speaker 1: I think the way we think about the next ten, twenty, thirty,
Speaker 1: forty fifty years of this industry is it's not a
Speaker 1: winner take all or winner take most. In fact, it's
Speaker 1: implied the opposite is that if a new network of
Speaker 1: constituents that are delivering value to the world through monetary
Speaker 1: services are to be developed, it implies that a network
Speaker 1: has more than one right or else it wouldn't be
Speaker 1: a network. And so I love to see we love
Speaker 1: to see other businesses and companies join us on the
Speaker 1: Bitcoin and the Lightning network. It makes our services more valuable.
Speaker 1: It enhances the network effects and the economies of scale
Speaker 1: that come with this new open digital infrastructure. So I'm
Speaker 1: a huge fan of Jack Dorsey and block and all
Speaker 1: they're doing, and that's great. More people are gonna be
Speaker 1: able to buy bitcoin on coin based self custody, and
Speaker 1: hopefully coinbas can then move out of the Lightning network.
Speaker 1: That'd be awesome.
Speaker 5: He's a fellow Bitcoin maximum List.
Speaker 2: I'm interested Jack in ultimately the overall regulatory overhang at
Speaker 2: the moment, particularly in the US, the issues that yes,
Speaker 2: you've moved to self custody, but many would say it
Speaker 2: happened in tandem when there was warriors, rumors about the
Speaker 2: bancucy of your former custodian, these sorts of issues weaknesses
Speaker 2: that seem to be in the rest of crypto. Does
Speaker 2: that ultimately damage its adoption longer term?
Speaker 5: Do you think? Is it frustrating or is it an opportunity?
Speaker 1: Well, let me ask you a question back damage witch adoption,
Speaker 1: crypto adoption or bitcoin adoption two different.
Speaker 2: Things Bitcoin too, because I think they will get caught
Speaker 2: up in the same narrative. Bitcoin is still ultimately deemed cryptocurrency.
Speaker 1: Yeah, totally, No, I think it's this is a great cleansing.
Speaker 1: It's really phenomenal. I mean, listen, guys, the SEC.
Speaker 3: Their job is to theoretically.
Speaker 1: And I'm just explaining what's going on. The SEC's job
Speaker 1: is to protect the ethics and morality in the United
Speaker 1: States financial markets, and the notion that they would have
Speaker 1: an issue with everything. But bitcoin does a lot. It
Speaker 1: doesn't seem like a very ethical moral like it's a problem,
Speaker 1: and so how do we fix that. We go through
Speaker 1: what we're going through now, People that shouldn't be in
Speaker 1: business go bankrupt, Things that are illegal and im moral
Speaker 1: and unethical should be required to disclose and give proper
Speaker 1: transparency to the American public.
Speaker 3: And so I think all of this is good for bitcoin.
Speaker 1: I think where this leaves us is values going to
Speaker 1: accrue where it's real and where I think it's real,
Speaker 1: and where I think it's moral, where I think it's ethical,
Speaker 1: where I think it's innovative, where I think it's better, faster, cheaper, stronger.
Speaker 3: It's bitcoin.
Speaker 1: And so the path on how we get there is
Speaker 1: always going to be complicated, and that's the part of
Speaker 1: free markets, which America loves deeply, right, And so I
Speaker 1: think we're just going through free market discovery of what's
Speaker 1: truly innovative in a new technology sector. We've been through
Speaker 1: before in the Internet, and we're seeing similar patterns now
Speaker 1: and I think that that's becoming abundantly clear that it's bitcoin.
Speaker 1: So on a day to day basis, if you're tracking
Speaker 1: a chart, maybe it looks choppy, but over a long
Speaker 1: term trajectory, I mean bitcoin is being widely considered the
Speaker 1: best version of money.
Speaker 2: Communities or de widely might be taking issue with, but
Speaker 2: certainly by some jack Man As, we thank you so
Speaker 2: much for bringing us your perspective. Really great to have
Speaker 2: you the Strike founder there. Coming up, well, we're going
Speaker 2: to be discussing how fresh Works is bringing the power
Speaker 2: of AI to its customers, how India in fact is
Speaker 2: joining the AI race. We'll talk about all of that
Speaker 2: with the CEO of fresh Works next. Plus, let's just
Speaker 2: quick look in on Adobe, the photoshop maker hour' earnings tonight,
Speaker 2: the company's artificial intelligence plan and it's deal with Figma
Speaker 2: that's going to be front and center in its second
Speaker 2: quarter revenue expected.
Speaker 5: Look, we're looking at the direction.
Speaker 2: Of travel for how revenue continues to be perhaps generated
Speaker 2: by generator of AI.
Speaker 5: Rough at one point eight percent of a Bloomberg.
Speaker 7: The most likely outcome for Europe trying to regulate it
Speaker 7: is they basically prevent the industrial revolution from happening in
Speaker 7: Europe and it remains a place where it's very nice
Speaker 7: to take my daughters on vacation, but maybe it's not
Speaker 7: part of the future of the world innovation wise if
Speaker 7: they're not very careful.
Speaker 3: Is the one possible upside or brex that.
Speaker 7: You could talk about is that maybe Europe commits suicide
Speaker 7: with its regulation and stops in a development there, and
Speaker 7: maybe the you know, UK gets it right and doesn't do.
Speaker 2: So sunshine over there in Europe. Eight Partners founding partner
Speaker 2: and Palentae co founder Joe Lonsdale, speaking on the sidelines
Speaker 2: of the Founder's Forum in London, essentially saying Europe's making
Speaker 2: a mistake in wanting to regulate AI. Now stick with
Speaker 2: all of this because beyond regulation, another key concerns going
Speaker 2: to be, well, how it affects you and I our.
Speaker 5: Jobs, the displacement are worry that.
Speaker 2: All the greater tech industry has already seen what two
Speaker 2: hundred thousand employees laid off this year and could that
Speaker 2: even be affected further and the fact that the machines
Speaker 2: can be doing it.
Speaker 5: Let's bring in Bloomberg's Ellen Hewitt for.
Speaker 2: More on all of this, and we've already heard it
Speaker 2: discussed IBM, for example, putting numbers to it, eight hundred
Speaker 2: back office rolls could be impacted by AI. Are you
Speaker 2: seeing the pipeline change when it comes to people looking
Speaker 2: at tech and wanting a job there.
Speaker 8: So we are seeing the pipeline change because you know,
Speaker 8: young people who want to join tech aren't seeing these
Speaker 8: layoff numbers. You know, two hundred thousand people lost their
Speaker 8: job already in twenty twenty three. More happened in twenty
Speaker 8: twenty two, and they're thinking, maybe this job isn't as
Speaker 8: secure as I once thought it was. I don't know
Speaker 8: that that's happening yet because of AI. And so that's
Speaker 8: kind of an interesting question that people are talking about
Speaker 8: right now. It's just because of the economy. But when
Speaker 8: these CEOs are sending out these big memos explaining why
Speaker 8: they're laying off so many workers, they're often citing AI
Speaker 8: not as a job replacement. That's saying we need to
Speaker 8: shift our business to focus more on how AI can
Speaker 8: enhance our business, and that might mean cutting some jobs
Speaker 8: and hiring more AI or machine learning engineers.
Speaker 2: We certainly had that from Meta. We've heard it from
Speaker 2: plenty of other founders. At the moment when we have
Speaker 2: seen a ce change culturally of people thinking it was
Speaker 2: you know, I get a computer ability when I go
Speaker 2: to university, I get some great instruction, and I've got
Speaker 2: a job made. Ultimately, are people now trying to work
Speaker 2: out the ways in which they can work with big tech?
Speaker 2: Are they more interesting going to startups?
Speaker 5: For example? There's all this talk of silver.
Speaker 2: Linings that people won't be employed by big tech, but
Speaker 2: my goodness, they'll go and start their own thing, are they?
Speaker 8: I think overall people are nervous right now, even the
Speaker 8: companies that seemed safe Google, Facebook, even these big startups
Speaker 8: like Stripe. You know, these private companies that are essentially public.
Speaker 8: They've been around so long and are so big. These
Speaker 8: companies are slashing jobs, and not just you know, often
Speaker 8: recruiters are the first to go when a company isn't
Speaker 8: hiring anymore, but they're cutting you know, people who have
Speaker 8: been software engineers at this company for ten years. There's
Speaker 8: a fear that's happening in the job market in Silicon Valley.
Speaker 8: I know people who aren't leaving jobs that they don't like,
Speaker 8: which they normally would leave because they're concerned that they
Speaker 8: won't be able to find a good one if they do.
Speaker 3: Hey, and beyond just the layoffs.
Speaker 4: I get the headline of the layoffs, but how is
Speaker 4: AI altering the jobs market in terms of the type
Speaker 4: of talent that startups are going out for. Your out
Speaker 4: in New York, you usually hear with me in broader
Speaker 4: Silicon Valley. You know, there is a lot of excitement
Speaker 4: right now and a lot of hiring as people pivot
Speaker 4: towards what is in vogue.
Speaker 8: I mean, if you're a software engineer with experience in
Speaker 8: artificial intelligence machine learning, you are in high demand. And
Speaker 8: we even saw that show up in some stats. I
Speaker 8: talk to someone who runs a database that collects compensation information.
Speaker 8: They said that senior software engineers with AI machine learning
Speaker 8: backgrounds are getting paid salaries on average twelve percent higher
Speaker 8: than senior software engineers without that relevant experience. I think
Speaker 8: the money is definitely going toward people who say that
Speaker 8: they can help these companies, you know, pivot toward AI
Speaker 8: or use AI to enhance their business.
Speaker 3: I think that's.
Speaker 8: One thing that's happening. And then another thing is, look,
Speaker 8: if you play around with JATGBT and you try to
Speaker 8: use it to code, I think you pretty quickly see
Speaker 8: that while.
Speaker 5: It can't do the job on its own, it.
Speaker 8: Can pretty quickly replace a couple extra programmers that you
Speaker 8: might need to build out a certain product. I know
Speaker 8: I have a friend who's building an app on his own.
Speaker 8: He would have hired a developer instead, he's just using
Speaker 8: chat GPT because it can code, and it can correct
Speaker 8: its own code. All he has to do is kind
Speaker 8: of tell it what he wants, and he knows enough
Speaker 8: to be able to make it work that way. It's
Speaker 8: not hard to imagine how this could replace jobs.
Speaker 5: A little bit down the line.
Speaker 4: All right, Blimberg Zellen here, all things start up, all
Speaker 4: Things Technology Worker, Thank you. All right, let's stick with
Speaker 4: AI and bring in Garish Matribute and CEO of Customer
Speaker 4: Service Productivity startup fresh Works. They call fresh Works the
Speaker 4: sales force of India. And I don't know whether Garish
Speaker 4: you're going to say that's fair or not, but what
Speaker 4: you're doing is taking generative AI tools and integrating it
Speaker 4: into existing suite.
Speaker 3: Freddy, how does that work?
Speaker 9: Good morning, Ed and Carolyn, thanks for having me on
Speaker 9: the show. At fresh Works, we've always believed in building
Speaker 9: software for the fortune five million, not just for the
Speaker 9: fortune five hundred and me have been on the Freddie
Speaker 9: journey for over five years now because we all know
Speaker 9: how AI was changing business, and we are solely taking
Speaker 9: the same idea of generative AI to democratize the access
Speaker 9: for generative AI to fortune five million companies and specifically
Speaker 9: in the areas of customer experience and employee experience. That's
Speaker 9: our mission now.
Speaker 4: The question is how does it help the customers in
Speaker 4: real terms? You know, we dangle the words generative AI
Speaker 4: in front of everything at the moment, Gearish tell us
Speaker 4: how in practice this helps your customer base.
Speaker 9: Okay, I'll give you two clear examples. If you take
Speaker 9: customer service, which is our largest business. We've all seen
Speaker 9: from the days of call center and IVR how businesses
Speaker 9: have always wanted our miation. So generative AI will bring
Speaker 9: that conversational style of customer self service for all of us.
Speaker 9: And more importantly, we believe in a human augmented AI,
Speaker 9: which is I think of copilot. So we are building
Speaker 9: an AI assistant for salespeople, support people, marketing people, so
Speaker 9: and so think of this new world where your employees
Speaker 9: can become even more productive, where they don't have to
Speaker 9: do the mundane boarding protein tasks and they can move
Speaker 9: on to doing higher productivity tasks, and that is going
Speaker 9: to make life a lot easier for all of us.
Speaker 2: So you're thinking more of an augmented human rather than
Speaker 2: one that's replaced garrish. What about coding yourself? Are you
Speaker 2: not having to hire as many people as you ultimately
Speaker 2: thought you would have to, because we're just hearing from
Speaker 2: Ellen about how you can do basic coding using tails
Speaker 2: such as CHATCHYBT.
Speaker 9: So I think developer productivity will definitely increase and that
Speaker 9: will allow us to do a lot more and do
Speaker 9: it faster. And you will still continue to hire developers,
Speaker 9: but maybe the skill set of the developers that you
Speaker 9: hire may change a little bit. As you are discussing
Speaker 9: there is more AI in demand, but we believe that
Speaker 9: overall developer pro activity will go up and that should
Speaker 9: help us do a lot more and there's going to
Speaker 9: be plenty of new opportunities for us to kind of solve.
Speaker 2: What's interesting is, of course, the AI hype that has today,
Speaker 2: for example, pushed Microsoft have a higher potentially at the
Speaker 2: highest record high for the stock. Ever, I'm looking at
Speaker 2: your share price and when it's languished to be Frank
Speaker 2: has picked up of late, but nowhere near the highs
Speaker 2: of previous years. And I'm interested, Grrishan, whether you feel
Speaker 2: that ultimately our companies are eating the AI lunch, whether
Speaker 2: that's rightly so or not. So it is perhaps the
Speaker 2: hype too much around certain names. Why hasn't yours been
Speaker 2: caught up in it?
Speaker 9: So we are more in the business productivity software. We
Speaker 9: are not in the business of hyping up AI. So
Speaker 9: we all know what's happened to tech stocks. And we
Speaker 9: are a young public company in the process of building
Speaker 9: credibility with the public investors. And we have shown like
Speaker 9: the last six eight quarters of consistent credible growth and
Speaker 9: we will continue to execute and I think the markets
Speaker 9: will eventually catch up to where the efficiencies are.
Speaker 3: Curious, I want to ask you about India.
Speaker 4: Sam Altman was in India who was talking about the
Speaker 4: opportunity for AI. You've expanded your operations and talent pool there.
Speaker 4: Some of what sam Altman said also invoked to respond,
Speaker 4: what did you make of it?
Speaker 9: Well, first of all, I think that in jen AI
Speaker 9: is a great opportunity for India with we just have
Speaker 9: crossed over five million developers in India. I think the
Speaker 9: number was three million a few years ago. So this
Speaker 9: is going to be a pivotal moment. And you have
Speaker 9: to understand that from a demographic standpoint, India has a
Speaker 9: very young workforce and who's hungry to learn and there's
Speaker 9: a lot of aspiration. And I was also amazed to
Speaker 9: see that universities in India have already started launching ai
Speaker 9: am a LINJENEVII courses. So you I think this is
Speaker 9: going to be a phenomenal opportunity for India and we
Speaker 9: are going to see a lot of startups focusing on
Speaker 9: that coming from India.
Speaker 2: Well, you're a prominent VC as well as being the
Speaker 2: founder of this particular company. Gerish, we thank you so
Speaker 2: much for spending some time in askurishrom Ratham Boutham, your
Speaker 2: CEO of Fresh Works.
Speaker 3: Time for talking tech TikTok.
Speaker 4: Parent byte Dance is drawing up plans to build an
Speaker 4: app capable of providing multiple services. The everything app model
Speaker 4: is popular in China thanks to ten cents we Chat.
Speaker 4: Byte Dance aims to offer a range of services from
Speaker 4: food delivery to travel bookings plus. TikTok CEO says it
Speaker 4: plans to invest billions of dollars in Southeast Asia over
Speaker 4: the next year three to five years. In fact, it's
Speaker 4: part of an effort to strengthen the presence of its
Speaker 4: hit video app in the region. And speaking of tikto
Speaker 4: a bipartisan group of US lawmakers reintroduce legislation that restricts
Speaker 4: social media companies like TikTok from sending sensitive user data
Speaker 4: to foreign adversaries. The bill doesn't explicitly mention TikTok. Welcome
Speaker 4: back to Number Technology. I'm Ed Ludlow here in San Francisco.
Speaker 5: I'm Caroline hid in New York. Let's go back to
Speaker 5: the world of AI.
Speaker 4: Yeah, the topic of the day, week, month, and year AI.
Speaker 4: So let's talk AI and data with AWS Vice president
Speaker 4: Milan Thompson Bukovic, who leads some of the company's largest
Speaker 4: scale data services. The way that I explain it is,
Speaker 4: if you're an AWS Cloud customer who is either storing
Speaker 4: or processing data, that's your responsibility.
Speaker 6: That is my rema. Thank you for having me here.
Speaker 3: You're very welcome.
Speaker 4: Why then, are you so focused on generative AI?
Speaker 6: Well, I have to tell you, ed ouraws.
Speaker 10: Customers are asking us, how do I chieve change my
Speaker 10: data strategy with GENAI?
Speaker 6: How do I make sure my GENI.
Speaker 10: Strategy is using my data to differentiate because that is
Speaker 10: what customers want.
Speaker 4: I think we've learned in recent weeks and months that
Speaker 4: training models on the thing that you want to.
Speaker 3: Reflect your own data is key.
Speaker 4: There is an argument that Amazon or AWS strong on
Speaker 4: AI machine learning behind on generative AI.
Speaker 3: What do you make of that argument?
Speaker 10: Well, I don't think that's the case actually, ed I
Speaker 10: think right now we have over one hundred thousand customers
Speaker 10: that are doing all different types of mL, including generative
Speaker 10: AI on AWS today.
Speaker 3: And if you look.
Speaker 10: At the customers that are pivoting quickly and they're launching
Speaker 10: with GENI capabilities today, they're launching them on a shared
Speaker 10: data set with the data strategy and the mL tools
Speaker 10: that Amazon provides. So I'll give you one example. Snap
Speaker 10: recently launched a new feature called my AI and so
Speaker 10: snapchatter is all over the world can use my AI
Speaker 10: to ask questions about what to word, would job interview
Speaker 10: or what movie to see? And my AI is running
Speaker 10: a generative AI. Many of the models for what Snap
Speaker 10: is using is using Amazon S three and their own
Speaker 10: data that they're training off of Amazon S three as
Speaker 10: well as Amazon EC two for the training.
Speaker 2: Itself, and they were able to move so nimbly because
Speaker 2: they had a cloud based model. How are you having
Speaker 2: those conversations with companies that aren't yet using cloud based model?
Speaker 2: Are you seeing the promise of generative AI the need
Speaker 2: to get into it as false tracking?
Speaker 5: Some of that sales process went on absolutely.
Speaker 10: That question of what is my data strategy and how
Speaker 10: does it help me move to gen AI is just
Speaker 10: top of mind.
Speaker 6: For CTOs and CIOs everywhere.
Speaker 10: If you look at some of the customers of AWS,
Speaker 10: if you look at Cox Automotive. Cox Automotive has been
Speaker 10: transforming the auto purchase experience with Kelly Bluebook and Autotrader,
Speaker 10: and they have been doing a data like a centralized
Speaker 10: data strategy model for many years now, and they started
Speaker 10: because of business analytics, but they found that when they
Speaker 10: centralize their data with their data strategy on Amazon S three,
Speaker 10: they were able to move that much more quickly into
Speaker 10: machine learning and computer vision. And now when you're looking
Speaker 10: at an image of a car on a Cox property,
Speaker 10: that computer vision models. Well, model will tell you if
Speaker 10: that's a shadow in the picture or it's actually a scratch,
Speaker 10: and that is an incredible, incredibly important.
Speaker 6: Part of the auto purchase experience.
Speaker 10: And so those customers need to start with the right
Speaker 10: data strategy, just like Cox Automotive did and in order
Speaker 10: to move as quickly as they can to all these
Speaker 10: new technologies.
Speaker 6: Informs the machine learning.
Speaker 2: How is it thosets of examples that get a potential
Speaker 2: customer coming to you rather than Microsoft, because it feels
Speaker 2: like Microsoft managed to just sort of take some of
Speaker 2: the ultrogen out of the room when it came to
Speaker 2: generative AI.
Speaker 5: How you fool back against that?
Speaker 10: Well, the things that we do, Caroline is really to
Speaker 10: just listen to our customers. And we have over twenty
Speaker 10: five machine learning services today and the latest thing that
Speaker 10: we have introduced is Amazon Bedrock.
Speaker 6: So again listening to customers. For us, we know data
Speaker 6: has gravity.
Speaker 10: We know that our customers want to bring their machine
Speaker 10: learning models to the data. And I'll tell you why
Speaker 10: that's the case. If you think about what data a
Speaker 10: customer has, it's their business data, but it's a lot
Speaker 10: of their customer's data and for data governance reasons, that
Speaker 10: they do not want to take their customer data and
Speaker 10: bring it over to another provider and have that train
Speaker 10: off site and off host and out of their control.
Speaker 6: And so with Bedrock, when we're training or we're.
Speaker 10: Giving the capabilities for customers to pick any open source
Speaker 10: model or to use Titan, the Amazon model, they're training
Speaker 10: their data on a local custom copy.
Speaker 6: They're able to integrate with.
Speaker 10: Stage Maker today to train off data that's in their
Speaker 10: data lake.
Speaker 5: And I think that is.
Speaker 10: A huge, huge differentiator for AWS because we have hundreds
Speaker 10: of thousands of data lakes running on Amazon S three
Speaker 10: today and customers want to start from there and not
Speaker 10: spin off all these data silos.
Speaker 6: Just for Jenai.
Speaker 10: They need to use their data to differentiate and to
Speaker 10: do it safely with the data governance that their CIOs need.
Speaker 4: Milan first half of this year, AWS customers were cost optimizing.
Speaker 3: Has that continued well.
Speaker 10: I think the keyword there ed is optimizing. When I
Speaker 10: talk to customers, and we hear this from customers all
Speaker 10: the time, it's all about prioritization. I think that's true
Speaker 10: for every company in the world right now.
Speaker 6: And so what our customers are doing is.
Speaker 10: They're prior to what are the most important investments to make,
Speaker 10: and for many of them, it's GENAI and how they
Speaker 10: take advantage of it. And so they're pivoting what they're
Speaker 10: spending on the cloud with AWS to focus on that
Speaker 10: and maybe deprioritizing, which just means do later some of
Speaker 10: the other initiatives.
Speaker 4: It kind of crystallize that for us in the context
Speaker 4: of generative AI, because if you're an aw's cloud customer,
Speaker 4: that can mean many things. They're pulling back in some areas,
Speaker 4: but are they tuning up in generative AI.
Speaker 10: Well, when I talked about that shared data set, and
Speaker 10: that is such an accelerator because when our customers tune up,
Speaker 10: as you say, on generative AI.
Speaker 6: They can do it that much faster.
Speaker 10: Let's take patre duty, so patro duty automates instant response.
Speaker 10: And just recently they launched three new generative AI capabilities,
Speaker 10: and their ability to launch that was based on the
Speaker 10: fact that they're training their data now on a huge
Speaker 10: data set in Amazons three that's also being used for
Speaker 10: analytics and other prediction based machine learning. So those customers
Speaker 10: that are able to pivot, they don't have to come
Speaker 10: up with a new data strategy. They just pivot and
Speaker 10: they go fast on JENNI because they're starting from that
Speaker 10: data strategy.
Speaker 4: Caroline, if you just peel back behind generatord AI, just
Speaker 4: get rid of that word for a second.
Speaker 3: There are some pretty cool things happening.
Speaker 4: People are building things software with new use cases.
Speaker 5: And we were just hearing about my AI from Snapchat.
Speaker 5: You were talking about cops my land.
Speaker 2: Ultimately, though, what is like the coolest thing that you've
Speaker 2: seen built that just wouldn't have been possible a year ago?
Speaker 2: Because I feel we get so caught up in the hype,
Speaker 2: But actually a lot of this stuff, as you say,
Speaker 2: is machine learning AI that perhaps was already predictive in nature.
Speaker 2: What is ultimately actually new that you've seen that couldn't
Speaker 2: have been done previously?
Speaker 10: Well, Caroline, I have to say, I have three children,
Speaker 10: and if you asked me to pick my favorite child,
Speaker 10: I don't think I could do that. That is much
Speaker 10: the same with so many any of the new innovations
Speaker 10: that are coming out everywhere. I think, you know, if
Speaker 10: I look at the my AI capability for snap I
Speaker 10: think that's that's really transformative.
Speaker 6: In the social media space. We have so many different examples.
Speaker 10: I think Canva is another one Canvas, a graphics tool,
Speaker 10: and it has over one hundred and thirty five million
Speaker 10: monthly active users and they are generating imagery off of
Speaker 10: text props. That's I think that's pretty amazing and I
Speaker 10: think it's really cool what AWS has with code Whisper.
Speaker 10: You know, as somebody who builds software services myself, the
Speaker 10: idea that you can generate code from existing code and
Speaker 10: comments automatically, I think is just going to be transformative
Speaker 10: for how we build software in the future.
Speaker 3: That's what we want to talk about building things.
Speaker 4: AWS Vice president Mylan Thompson Bookovec thank you very much.
Speaker 4: Now coming out Tesla offering three months of free fast
Speaker 4: charging in the US, with a goal of clearing inventory
Speaker 4: of Model threesidands before the end of the quarter. Much
Speaker 4: more on that next Real Quick watching shares of software one.
Speaker 4: The company's board said. Bain Capital's three point two billion
Speaker 4: dollar offer to take the IT Services provide a private
Speaker 4: undervalues the company. The latest heard when the private equity
Speaker 4: firms attempt to buy that big European technau.
Speaker 3: This is Bloomberg.
Speaker 4: This is a North American charging standard or NACS connector,
Speaker 4: and it was invented by Tesla, and this is a
Speaker 4: CCS connector and CCS stands for Combined Charging system and
Speaker 4: it was used by almost everybody else. Dad's until big news. O,
Speaker 4: hey Tesla, this is Ford and GM.
Speaker 3: Yeah, we're joining team NACS.
Speaker 4: Ford and GM announced they'd adopt NACS in future models
Speaker 4: and they get access to the Tesla charger network, and
Speaker 4: that essentially created a US wide standard. Charging Providers like
Speaker 4: charge Point, EVgo, Rulebox, and Blink followed suit, saying they'd
Speaker 4: offer technology that works with Tesla's connectors and offer CCS.
Speaker 3: Here's the history.
Speaker 4: Twenty eleven, automakers like four, GM, Volkswagen, and BMW say
Speaker 4: they'll collaborate.
Speaker 3: On the combined Charging system.
Speaker 4: Their goal use CCS to standardize how evs are charged
Speaker 4: in the US and Europe. Meanwhile, Tesla develops its own
Speaker 4: proprietary technology that's been used since twenty twelve when.
Speaker 3: The Model Less went into production.
Speaker 4: Those NACS connectors are lighter, approximately half the size, and
Speaker 4: can transfer more power than CCS. The reality is Tesla's
Speaker 4: NACS network is already bigger than the CCS network in America,
Speaker 4: but there's still some concerns. Advocates for CCS say that
Speaker 4: NACS is not open source and it has not been
Speaker 4: peer reviewed.
Speaker 3: For now, it.
Speaker 4: Seems to be a case of Tesla's way or all
Speaker 4: right for more, let's bring in Bloomberg's to a whole.
Speaker 4: That's the context of the last week, Dana the news
Speaker 4: Tesla offering free charging.
Speaker 3: What do we know? Well, it's not free.
Speaker 11: I mean, you know, Ford and GM customers are going
Speaker 11: to have to pay for it. But supercharging has become
Speaker 11: a big value add for Tesla, and I think we've
Speaker 11: seen consumers now you know, they're no longer worried about
Speaker 11: range anxiety so much as they are if I go
Speaker 11: to a charging station, isn't going to work because we've
Speaker 11: seen a lot of reliability studies out about broken chargers
Speaker 11: and that's just not okay. Like we're in this big
Speaker 11: transition to electric vehicles, being able to know that you're
Speaker 11: going to be able to charge when you go to
Speaker 11: your destination is a big point for consumers.
Speaker 2: Meanwhile, they're still trying to sell that caused Tesla as
Speaker 2: well as being able to beef up their revenue streams
Speaker 2: and the forward looking nature of being able to you know,
Speaker 2: share its own capacity to charge. What are they doing
Speaker 2: with all the Model threes that they are not able
Speaker 2: to shift right.
Speaker 11: Now, right, so they are offering free supercharging for three months.
Speaker 11: Anyone who takes a Model three takes livery of a
Speaker 11: Model three before June thirtieth, which conveniently is the end
Speaker 11: of the second quarter. So you're now start of seeing
Speaker 11: supercharger be a lever that Tesla is pulling to kind
Speaker 11: of help spur demand as they're trying to clear that inventory.
Speaker 5: It's a sort of what price with that? Ultimately, what
Speaker 5: are you saving?
Speaker 11: I think it really depends on how much you drive.
Speaker 11: I mean, the important thing is that most people who
Speaker 11: own an electric car charge overnight at home. Supercharging is
Speaker 11: really just for those longer road traditions.
Speaker 5: Yeah, but it's not.
Speaker 11: I mean, it used to be free when Tesla was
Speaker 11: first a company, and now now you know it's it's
Speaker 11: a it's a cost, but it's it's free if you
Speaker 11: buy a car before.
Speaker 5: The end of the month.
Speaker 4: I thought, so, Donna, the story with Tesla's kind of changed.
Speaker 4: You always nail it and you wrote that the charger
Speaker 4: or the network is Tesla's shrewdest product.
Speaker 3: What do you mean by that?
Speaker 11: I just think they had the foresight very early on,
Speaker 11: going over a decade now that charging was going to
Speaker 11: be really key to consumer adoption, and you know, the
Speaker 11: CCS standard is kind of like a standard by committee,
Speaker 11: it was very slow moving. Tesla was like, we can't
Speaker 11: wait coming out with the model S. We're going to
Speaker 11: make our own. And they have really chosen very good
Speaker 11: locations and they have the telematics and the data from
Speaker 11: how people to charge to know where they need to
Speaker 11: add more chargers, where people charge the longest, what the
Speaker 11: biggest stops are. I mean, the Harris Rants supercharger station
Speaker 11: has ninety eight stalls. That's the big station on the
Speaker 11: route between the Bay Area and Los Angeles. And you know,
Speaker 11: other car companies, I mean they just serve I think
Speaker 11: recognizing that the superchargers are better, they're faster, they work,
Speaker 11: and like Tesla maintains them, whereas like with these other
Speaker 11: charging companies that are out there, like it's not really
Speaker 11: clear who maintains them once they're installed, and the user
Speaker 11: interface isn't as good. So you know what's interesting is
Speaker 11: this is this dominance is not the case in Europe
Speaker 11: and China, but in the US for sure, like the
Speaker 11: supercharger network is seen as the best out there, which
Speaker 11: is why Ford and GM have just joined it.
Speaker 5: Donahow, great to have you here in EYL. Thank people
Speaker 5: coming and spending some time with us.
Speaker 2: Really appreciate it. Now tonight's episode of The Circuit, Emily
Speaker 2: Chang sits down with Open aiyes Mira Mariti, the company's
Speaker 2: chief technology officer, and really just gets to grips with
Speaker 2: some of the potential risks the rewards of a world
Speaker 2: with widespread artificial intelligence.
Speaker 6: Through certainly a risk that.
Speaker 12: When we have this AI systems that are able to
Speaker 12: set to their own goals, they decide that their goals
Speaker 12: are not aligned with ours and they do not benefit
Speaker 12: from having us around and could lead to human execution.
Speaker 10: That is a risk.
Speaker 3: The Circuit.
Speaker 4: To watch more of Emily Chang's interview with Miramurati, opens
Speaker 4: Ai CTO and Read Hoffman actually, who was an early
Speaker 4: Open Ai investor, watched The Circuit Emily Chang tonight ten
Speaker 4: pm in New York on Bloomberg Television, or stream it
Speaker 4: at eight pm Eastern on Bloomberg Originals. Now much of
Speaker 4: Silicon Valley is playing catch up in the AI race,
Speaker 4: chasing after Microsoft, which has been investing in the hottest
Speaker 4: startup on the market open Ai since twenty nineteen. Now
Speaker 4: it's preparing to cash in on that investment. It's today's
Speaker 4: big take, and joining us for more is one of
Speaker 4: the co buy lines on that big take.
Speaker 3: Dina bass this in Business Week.
Speaker 4: Talk to me about the leapfrogging Google years and years
Speaker 4: of research, but didn't want to go towards commercialization. Microsoft
Speaker 4: this scattergun approach, multiple chains looking at ai.
Speaker 3: Clippy is in there along the way. Now everything's changed.
Speaker 13: A lot of the difference is Microsoft's ceostat Inadella's decision
Speaker 13: to really bet on open Ai and to premise a
Speaker 13: lot of Microsoft's strategy to underpin a lot of its products,
Speaker 13: the entire load of products that's been unveiling in the
Speaker 13: last six months on the open Ai technology. That's a
Speaker 13: really unusual move for Microsoft. Microsoft has you know, we
Speaker 13: spoke to a lot of people inside and outside the company.
Speaker 13: The company is really never before relied on an outside
Speaker 13: company to underpin so significantly, it's bet on a major
Speaker 13: platform shift such as as ai is expected to be.
Speaker 13: So that's that's a real difference, and it's made a
Speaker 13: huge difference for Microsoft because if you go back a
Speaker 13: couple of years when they're Microsoft had a lot of
Speaker 13: AI efforts going on, but they weren't amounting too much
Speaker 13: in terms of products or in terms of a coherence strategy.
Speaker 4: The Big Take also poses questions about open Ai, whether
Speaker 4: it's actually the hottest startup out there or actually, in practice,
Speaker 4: if it's a subsidiary of Microsoft.
Speaker 13: Now you know, I mean financially it's clearly not a subsidiary.
Speaker 13: Microsoft's put a total of thirteen billion into open Ai,
Speaker 13: according to people familiar with the deals with Not all
Speaker 13: of those deals amounts republic obviously, but you know, there
Speaker 13: is and this is a little bit of, like, you know,
Speaker 13: one of the hotter parlor games in tech right now,
Speaker 13: a discussion of you know, who is the controlling party here?
Speaker 13: You know, does Microsoft? You know, is Microsoft the more
Speaker 13: important party? Is open Ai the more important party? And
Speaker 13: the truth is that to a large extent, they're very
Speaker 13: codependent on each other. They're, you know, both the futures
Speaker 13: of both companies and some pretty significant ways are tied
Speaker 13: up in the work of the other one.
Speaker 4: At this point, there's a key character in this story,
Speaker 4: Kevin Scott, Microsoft's chief technology officer. He finds his way
Speaker 4: to Microsoft through the LinkedIn acquisition, and then in twenty
Speaker 4: nineteen he basically gets Microsoft's act together in how it
Speaker 4: goes about tackling AI. Right.
Speaker 13: So Kevin Scott, very shortly after LinkedIn closes taught him
Speaker 13: makes Kevin Scott the CTO for the whole company, and
Speaker 13: one of his missions, one of his charges, was to
Speaker 13: come up with a way for Microsoft's AI strategy to
Speaker 13: be more focused, more coherent, and most importantly, more impactful.
Speaker 13: And Kevin, you know who has a long standing relationship,
Speaker 13: you know, with Sam Altman, actually you know, winds up
Speaker 13: being the go between and the negotiations between the two companies.
Speaker 13: He's also someone that spent a fair amount of time
Speaker 13: at Google. And one of the things he notices when
Speaker 13: he comes in and he looks at the Microsoft AI efforts, Spaci.
Speaker 13: You know, a lot of your listeners might think, you know,
Speaker 13: Microsoft just got into AI. Actually Microsoft been working on
Speaker 13: AI for more than two decades. But what Scott saw
Speaker 13: started looking at all the projects and he looked at
Speaker 13: it via the request for GPUs, these key AI chips
Speaker 13: for every AI project in the company, and there were
Speaker 13: so many requests. He told us it was basically the
Speaker 13: magnitude of Microsoft's entire capital budget, and there were all
Speaker 13: these disparate projects that didn't have a business model, weren't
Speaker 13: talking to each other, and he, you know, around twenty nineteen,
Speaker 13: he and the Della come up with his plans, are
Speaker 13: really instilled some discipline and make sure everything is you know,
Speaker 13: marching towards some big goals. But also they do the
Speaker 13: open Ai investment that same year, which is a huge bet.
Speaker 13: Again not on my work, else's.
Speaker 4: Bloomberg's Dina Burs just terrific deep reporting for the big
Speaker 4: take in Business Week. Check it out online on the
Speaker 4: Bloomberg terminal. Also talks a lot about how Microsoft commercialized
Speaker 4: the technology, which we didn't have time to get to.
Speaker 3: That does it, I'm afraid.
Speaker 4: For this edition of Bloomberg Technology, we are four days
Speaker 4: into a mega mega week from Silicon Valley.
Speaker 3: And in New York.
Speaker 4: You can recap what we've been talking about with the
Speaker 4: Bloomberg Technology Podcast wherever you get your podcasts, Apple, Spotify, iHeart,
Speaker 4: and the Bloomberg platforms of course from San Francisco. This
Speaker 4: is Bloomberg Technology