WEBVTT - Meta Soars on Earnings, Plaid CEO Talks FinTech & Tesla Owners Sour on Musk 0:00:01.480 --> 0:00:05.120 From Mahard. We're Innovation of Money and Power Collie in 0:00:05.240 --> 0:00:06.760 Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.120 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.960 --> 0:00:27.840 I'm karenine Heide of Bloomberg's worldeadquarters in New York and 0:00:27.920 --> 0:00:29.480 Amed Loveler in San Francisco. 0:00:29.720 --> 0:00:31.920 This is Bloomberg Technology. 0:00:31.680 --> 0:00:34.720 Back together and coming up full earning coverage Ahead, we 0:00:34.800 --> 0:00:37.800 break down results from the social giant Meta and sit 0:00:37.880 --> 0:00:40.239 down with the chief financial officer, Susanly. 0:00:40.560 --> 0:00:43.280 Plus we speak to the CEO of startup Plaid, which 0:00:43.440 --> 0:00:47.080 now valued the more than thirteen billion dollars, his outlook 0:00:47.080 --> 0:00:49.920 on the fintech space in the future of digital banking, 0:00:50.520 --> 0:00:51.400 and you may love. 0:00:51.280 --> 0:00:53.560 Your tesla, but do you love the man who's building them. 0:00:53.720 --> 0:00:56.080 We'll break down the results from our Bloomberg Big Take 0:00:56.520 --> 0:01:00.280 that tackles just that, but first let's go to Meta. 0:01:00.440 --> 0:01:03.320 Let's stick with it at Deborah ajo Williamson Insider Intelligence, 0:01:03.320 --> 0:01:07.679 Principle analyst and anything left unsaid on that cool Deborah, 0:01:07.800 --> 0:01:10.080 anything that you really want to guide on with Meta 0:01:10.160 --> 0:01:12.800 because it looks as though well they're back back to 0:01:12.840 --> 0:01:15.760 growth as the economy comes back. In digital advertising too. 0:01:16.520 --> 0:01:20.520 Yeah, it's been an incredible quarter. All the news that 0:01:20.600 --> 0:01:24.880 I heard was very positive, and it's pretty incredible considering 0:01:24.959 --> 0:01:27.200 that not too long ago, sometime in the middle of 0:01:27.319 --> 0:01:32.080 last year, I had very significant concerns about the company. 0:01:32.680 --> 0:01:37.319 We saw revenue challenges, we saw issues with the metaverse 0:01:37.959 --> 0:01:40.280 not taking off as fast as Mark Zuckerberg thought it 0:01:40.360 --> 0:01:42.640 was going to. That's still the case, by the way, 0:01:42.760 --> 0:01:46.400 but the company I think has become leaner and meaner 0:01:46.800 --> 0:01:50.680 and has been able to really focus on what it 0:01:50.720 --> 0:01:54.760 needs to accomplish now to be relevant now. I think, 0:01:54.760 --> 0:01:57.400 for example, the launch of Threads a couple of weeks 0:01:57.440 --> 0:02:00.640 ago is a perfect example of the way that Meta 0:02:00.720 --> 0:02:04.520 has been able to just double down with a small team, 0:02:04.640 --> 0:02:07.240 smaller the team than it has it's had in the past, 0:02:07.680 --> 0:02:11.400 put out an app that got huge publicity, great attention 0:02:11.560 --> 0:02:15.000 for Meta. And we'll see what happens with Threads when 0:02:15.040 --> 0:02:17.320 it actually rolls out a little bit further. 0:02:17.400 --> 0:02:19.679 But so far, the quarter. 0:02:19.480 --> 0:02:23.320 Really looked good, and as you pointed out ed Q three, 0:02:23.400 --> 0:02:26.480 if they meet that guidance that twenty percent or above 0:02:26.600 --> 0:02:30.720 revenue growth would be an amazing accomplishment after the twenty 0:02:30.760 --> 0:02:33.640 twenty two that they had, which was not a good year. 0:02:34.560 --> 0:02:37.840 Did we learn anything new about Threads? I mean, Mark 0:02:37.919 --> 0:02:44.079 Zuckerberg Susan Lee very restrained about making money through that platform. 0:02:44.680 --> 0:02:49.440 Absolutely, So Threads launched after the quarter ended, so there 0:02:49.560 --> 0:02:53.799 was no impact to Q two for Threads. But they 0:02:53.800 --> 0:02:56.120 did say, and this is a pretty typical pattern that 0:02:56.320 --> 0:03:00.359 Meta follows with any new feature that they launch, voting 0:03:00.360 --> 0:03:03.839 stories back in the day in reels. More recently, they 0:03:03.880 --> 0:03:07.400 want to build an audience first before they start to 0:03:07.440 --> 0:03:10.480 monetize it. They did mention on the call that they 0:03:10.639 --> 0:03:14.079 think that there is room for a text based app 0:03:14.440 --> 0:03:18.200 to reach a billion users. They did name check Twitter 0:03:18.280 --> 0:03:21.520 at one point, which is very rare for Meta executives 0:03:21.520 --> 0:03:24.720 to talk about other companies. On the call, they did 0:03:24.760 --> 0:03:29.359 mention Twitter, you know, I caught that and I thought, wow, 0:03:29.400 --> 0:03:32.600 that's pretty interesting. But they do think that there is 0:03:32.680 --> 0:03:36.600 room for a one billion user text based communication app, 0:03:36.640 --> 0:03:39.000 and so if Threads can get there, that will add 0:03:39.040 --> 0:03:45.040 to Instagram and Facebook and WhatsApp as the other three 0:03:45.240 --> 0:03:47.600 of one billion plus apps in their roster. 0:03:48.560 --> 0:03:52.360 There are money making machine bought people now questioning whether 0:03:52.400 --> 0:03:55.760 people are remaining on the Threads app and is addicted 0:03:56.040 --> 0:03:59.440 can they really take on the competition taketok on the 0:03:59.480 --> 0:04:01.760 one front, when you look at X on the other, 0:04:02.080 --> 0:04:05.240 when you're seeing all of really a very competitive space 0:04:05.480 --> 0:04:09.040 who all want time and indeed advertises to have confidence. 0:04:10.040 --> 0:04:12.320 Yeah, well, it is going to take time for Threads 0:04:12.360 --> 0:04:16.200 to find itself. One of the benefits of having the smaller, 0:04:16.279 --> 0:04:18.320 leaner team that I just talked about was that they 0:04:18.360 --> 0:04:21.919 were able to launch Threads very quickly and bring it 0:04:21.960 --> 0:04:24.520 online probably before it had some of the features that 0:04:24.560 --> 0:04:27.719 people were looking for. So the downside to that is 0:04:28.400 --> 0:04:30.480 didn't have the features that people were looking for, and 0:04:30.520 --> 0:04:32.880 so maybe some people decided, oh, this isn't. 0:04:32.680 --> 0:04:33.520 For me right now. 0:04:33.600 --> 0:04:35.760 So the challenge is going to be to get people 0:04:35.800 --> 0:04:38.479 to come back and to continue to use it. But 0:04:38.560 --> 0:04:40.680 I do think Threads needs to be more than just 0:04:41.240 --> 0:04:44.080 a Twitter killer or something like that. Threads needs to 0:04:44.120 --> 0:04:47.680 find itself as a place for creators and people to 0:04:47.720 --> 0:04:51.280 communicate in the way that they want to communicate On Threads. 0:04:51.560 --> 0:04:53.279 It's not going to be enough to just try to 0:04:53.279 --> 0:04:57.800 completely mimic or replace Twitter. So that's going to be 0:04:58.279 --> 0:05:00.799 the dividing line for me in terms of what makes 0:05:01.000 --> 0:05:02.920 a Threads an app to stand out. 0:05:03.640 --> 0:05:05.360 But you mentioned TikTok. 0:05:05.920 --> 0:05:09.760 The other factor here is that TikTok is Meta's number 0:05:09.800 --> 0:05:10.760 one competition. 0:05:10.920 --> 0:05:11.760 It's not Twitter. 0:05:11.960 --> 0:05:15.000 Twitter hasn't been metas competition for quite a long time. 0:05:15.040 --> 0:05:17.400 As much as as everybody likes to think about Twitter 0:05:17.520 --> 0:05:21.280 versus threads, right now, it's really Meta versus TikTok. 0:05:21.360 --> 0:05:22.080 That is the battle. 0:05:23.160 --> 0:05:27.560 So ten billion and you'll run rate for reels. I 0:05:27.560 --> 0:05:30.599 think you, guys, Adie mark to have the inside intelligence, sorry, 0:05:30.680 --> 0:05:34.279 have the math on this. TikTok did like nine billion 0:05:34.360 --> 0:05:38.360 last year worldwide, so did you hear it? 0:05:38.640 --> 0:05:39.040 Very good? 0:05:39.040 --> 0:05:41.760 Our forecast was for actually just under ten billion, so 0:05:42.080 --> 0:05:42.760 very okay close? 0:05:43.200 --> 0:05:45.440 Yeah, So are they competitive? 0:05:45.560 --> 0:05:49.560 Is reels a TikTok competitor in terms of its ability 0:05:49.640 --> 0:05:52.279 to not just get eyeballs but make a bit more money. 0:05:53.400 --> 0:05:57.039 It's absolutely become a very strong competitor. We heard on 0:05:57.080 --> 0:05:59.880 the call yesterday the three quarters of out of ever 0:06:00.080 --> 0:06:03.320 tisers on Meta are using reels right now, or excuse me, 0:06:03.320 --> 0:06:06.200 three quarters of Instagram advertisers are using reels right now. 0:06:06.400 --> 0:06:08.520 And that just speaks to the ability of Meta to 0:06:08.960 --> 0:06:12.600 get advertisers who are already ingrained in its other properties 0:06:12.640 --> 0:06:13.800 to try something new. 0:06:14.120 --> 0:06:16.000 So That's one thing that I noticed. 0:06:16.240 --> 0:06:18.520 Another thing I think that is worth paying attention to 0:06:18.760 --> 0:06:21.640 is that more people are seeing reels. Meta is using 0:06:21.680 --> 0:06:27.000 its AI to show recommended content, and so people are 0:06:27.000 --> 0:06:30.359 seeing reels in their feeds that are very attuned to 0:06:30.400 --> 0:06:33.040 their interests, and so they're more likely to watch them. 0:06:33.800 --> 0:06:35.520 It is still true that I. 0:06:35.440 --> 0:06:38.600 Think some reels are maybe many reels are pulled from 0:06:38.640 --> 0:06:41.640 TikTok or very similar to TikTok, so it does have 0:06:41.720 --> 0:06:44.640 that as an issue, But overall, as a platform, I 0:06:44.680 --> 0:06:46.440 think reels is doing very very. 0:06:46.240 --> 0:06:46.960 Well right now. 0:06:48.440 --> 0:06:52.400 Debrajo Williamson insider intelligence. Always good to get that real 0:06:52.440 --> 0:06:54.799 time perspective on learning. Thank you so much for joining. 0:06:55.200 --> 0:06:57.360 We keep a conversation going coming up. We're joined by 0:06:57.440 --> 0:07:02.240 Zach pere claud c discuss fed now is causing a 0:07:02.240 --> 0:07:05.200 bit of a buzz in the fintech industry, so that's 0:07:05.240 --> 0:07:08.919 coming up next. This is Bloomberg technology. 0:07:17.040 --> 0:07:19.640 While the consumer is strong clear from GDP today, let's 0:07:19.640 --> 0:07:22.320 talk about who you and I make payments at the moment, 0:07:22.320 --> 0:07:24.880 because the space is really changing. We all want instant 0:07:24.880 --> 0:07:29.480 gratification and said now is actually enabling more instant payments. 0:07:29.520 --> 0:07:31.880 Twenty four to seven thanks to the Federal Reserve. Now 0:07:31.960 --> 0:07:35.200 fintech company Plaid, financial services firm that really serves as 0:07:35.200 --> 0:07:37.240 the plumbing for more than what eight thousand that leads 0:07:37.240 --> 0:07:41.120 today's most popular financial apps, just announced integration with that 0:07:41.360 --> 0:07:44.400 FED now where it's transfer service for more. Let's bring 0:07:44.400 --> 0:07:47.600 in Zach Parrey, Plaid CEO, who is here to talk 0:07:47.600 --> 0:07:51.280 about the whole ecosystem for us. Zach, how is FED 0:07:51.320 --> 0:07:54.000 now going to change the game? How is payments and 0:07:54.040 --> 0:07:57.400 you're placed within the payments ecosystem going to change? 0:07:57.720 --> 0:07:58.840 Thank you so much for having me. 0:08:00.040 --> 0:08:03.320 Services is changing very rapidly, and payment specifically is changing 0:08:03.400 --> 0:08:06.400 very rapidly right now. We're going from a payment system 0:08:06.440 --> 0:08:09.760 that was really oriented around cards for quite a long time, 0:08:09.920 --> 0:08:12.240 so now adding new payment trails into the system, and 0:08:12.280 --> 0:08:15.080 that hasn't happened since AH and cards really started to 0:08:15.080 --> 0:08:17.880 scale back in the seventies and eighties. As we're starting 0:08:17.920 --> 0:08:19.320 to look at FED now, this is going to be 0:08:19.360 --> 0:08:23.000 a brand new payment rail coming in and we expect 0:08:23.040 --> 0:08:27.640 it to increase consumer choice, increase competition, increase optionality for 0:08:27.760 --> 0:08:30.480 people out there. So we're really excited for where the 0:08:30.520 --> 0:08:32.920 potential of it is. But it's very early. We've just 0:08:33.000 --> 0:08:35.160 launched that now with thirty five banks, and hopefully it 0:08:35.160 --> 0:08:37.200 goes from thirty five to many many more soon, but 0:08:37.240 --> 0:08:38.320 it's still in the early stages. 0:08:38.440 --> 0:08:40.920 How much of a competitive threat is it to fintech 0:08:41.000 --> 0:08:42.559 in and of its self? 0:08:43.280 --> 0:08:45.640 So I actually think that fed now is a large 0:08:45.640 --> 0:08:48.079 accelerant to fintech. So when you think about the way 0:08:48.120 --> 0:08:50.839 that you get paid, perhaps for payroll, when you think 0:08:50.840 --> 0:08:52.400 about the way that you send money to a friend, 0:08:52.720 --> 0:08:54.560 when you think about the way that you maybe transfer 0:08:54.559 --> 0:08:57.360 funds from your brokerage application back into your checking account 0:08:57.760 --> 0:09:00.640 today it oftentimes takes three days. You're using the legacy 0:09:00.720 --> 0:09:04.120 ACCH system, which is a wonderful system, has scaled incredibly far, 0:09:04.720 --> 0:09:07.400 but it's slow. As you look at fed now, fed 0:09:07.400 --> 0:09:09.200 now is going to be an instant addition to that. 0:09:09.400 --> 0:09:11.800 So you could run, yes, a slow transaction on ach 0:09:11.840 --> 0:09:14.200 still for quite a long time, or you could use 0:09:14.240 --> 0:09:16.400 fed now to deposit those funds instantly or move them 0:09:16.400 --> 0:09:17.840 a lot faster than you would otherwise. 0:09:18.600 --> 0:09:21.120 As Zach, good morning from San Francisco. Good afternoon to 0:09:21.200 --> 0:09:23.240 you in New York. There'll be viewers of bloom Bay 0:09:23.280 --> 0:09:27.440 Technology here in America that say the instant transfer of 0:09:27.520 --> 0:09:30.199 funds twenty four to seven, three hundred. 0:09:29.920 --> 0:09:31.000 And sixty five days a year. 0:09:31.120 --> 0:09:34.719 Yes, that's what I want, but it sounds like the 0:09:34.720 --> 0:09:38.680 reality of this kind of nationwide rollout is still a 0:09:38.760 --> 0:09:40.800 way away. When do you see it as sort of 0:09:40.840 --> 0:09:44.880 a commonplace standard for transactions in this nation. 0:09:45.960 --> 0:09:49.280 That's a great question. Hopefully soon, but the reality is 0:09:49.360 --> 0:09:51.800 it will take years. It won't be an instant thing, 0:09:52.040 --> 0:09:54.080 and it's going to take us maybe two three four years, 0:09:54.080 --> 0:09:55.880 perhaps even a little bit longer than that, to get 0:09:55.880 --> 0:09:58.440 it to total mainstream. But what we are going to 0:09:58.440 --> 0:10:00.640 start to see is that certain use can are going 0:10:00.679 --> 0:10:03.240 to accelerate a lot faster. So, for example, if you 0:10:03.440 --> 0:10:06.800 think about payroll, getting payroll delivered more quickly is better 0:10:06.800 --> 0:10:08.800 for employers. They have less time with the funds floating 0:10:08.840 --> 0:10:11.079 out there. It's better for employees and they're able to 0:10:11.080 --> 0:10:13.200 actually receive their funds faster. So I suspect that there 0:10:13.240 --> 0:10:15.320 are going to be certain sub segments of the industry 0:10:15.760 --> 0:10:18.760 that are really focused on making it go quickly. The 0:10:18.760 --> 0:10:21.120 big question in my mind is actually how fast banks 0:10:21.120 --> 0:10:23.840 are going to adopt it. So we've seen fed now 0:10:23.920 --> 0:10:26.560 launch with thirty five banks. It's a non trivial but 0:10:26.640 --> 0:10:29.040 still fairly straightforward amount of work that the bank has 0:10:29.080 --> 0:10:31.000 to do to implement fed now and get up and 0:10:31.040 --> 0:10:33.440 running on the system. The big question in my mind 0:10:33.480 --> 0:10:35.199 is how fast are we going to go from thirty 0:10:35.200 --> 0:10:37.640 five to three hundred and fifty to thirty five hundred 0:10:37.840 --> 0:10:40.560 financial institutions they're using fed now and enabling all of 0:10:40.600 --> 0:10:42.320 those millions of consumers to actually use it on the 0:10:42.320 --> 0:10:42.719 back end. 0:10:43.200 --> 0:10:46.520 You announced a deeper partnership with cross River this morning 0:10:47.080 --> 0:10:50.240 on real time payments, and one of the things that 0:10:50.280 --> 0:10:54.360 you highlighted was their proprietary technology, their own ability to 0:10:54.440 --> 0:10:57.120 do this. What is it that they have that other 0:10:57.200 --> 0:10:59.960 banks lack that you think need to be more common 0:11:00.080 --> 0:11:02.040 in place to make this a reality. 0:11:02.480 --> 0:11:05.920 So we very much appreciate the partnership with cross River, 0:11:05.960 --> 0:11:08.320 and they're very much leaning into these newer real time 0:11:08.360 --> 0:11:10.679 payment rails, which is great. And we have fed now, 0:11:10.720 --> 0:11:13.040 which we're very excited and obviously as lun As recently 0:11:13.080 --> 0:11:15.480 we are continuing to lead into. And we also have RTP, 0:11:15.600 --> 0:11:17.360 which is a protocol that's built by many of the 0:11:17.440 --> 0:11:20.640 large banks. So I think with a combination of these 0:11:20.640 --> 0:11:21.880 two we're going to be able to get to a 0:11:21.880 --> 0:11:23.960 lot more consumers a lot more quickly. And of course 0:11:23.960 --> 0:11:25.640 we work at a number of banking partners, but cross 0:11:25.720 --> 0:11:28.199 rivers leaning in to help us get these products to 0:11:28.200 --> 0:11:29.360 the market as quickly as we can. 0:11:29.760 --> 0:11:32.880 What's funny is when ed started to describe what's coming 0:11:32.960 --> 0:11:35.559 via fed now, I thought of crypto three hunt and 0:11:35.559 --> 0:11:38.240 sixty five days all time, twenty four to seven. Ability 0:11:38.320 --> 0:11:43.520 to get access to money directly. Is that a competitive force? 0:11:43.600 --> 0:11:45.920 Do you see crypto still evolving in the same way 0:11:45.920 --> 0:11:47.760 if we suddenly do have more and quick access to 0:11:47.760 --> 0:11:48.240 our money. 0:11:48.440 --> 0:11:50.280 You know, it's an interesting point that you bring up, 0:11:50.280 --> 0:11:52.920 because when we heard the promise of crypto, or the 0:11:52.960 --> 0:11:56.280 promise of DeFi, or many of these new protocols or tools, 0:11:56.679 --> 0:11:58.520 a lot of it was centered around this concept of 0:11:58.960 --> 0:12:01.480 enabled consumers to have that to their money at all times. 0:12:01.520 --> 0:12:04.880 As you say, in some sense, fed now is completing 0:12:04.960 --> 0:12:05.480 that journey. 0:12:06.240 --> 0:12:07.520 You know, if this and when. 0:12:07.320 --> 0:12:10.319 This gets to scale, it will allow consumers to yes, 0:12:10.360 --> 0:12:12.000 move money in the time that they want to, in 0:12:12.040 --> 0:12:14.240 the instant that they want to. That's not to say though, 0:12:14.240 --> 0:12:17.520 that crypto is dead in any sense. In fact, many 0:12:17.520 --> 0:12:20.040 cryptocurrency companies are likely to use fed now as a 0:12:20.040 --> 0:12:23.040 funding mechanism or a funding rail to move money into, 0:12:23.120 --> 0:12:25.560 for example, a cryptocurrency exchange, So you still have to 0:12:25.559 --> 0:12:28.000 fund that account. So the reality is, I expect these 0:12:28.000 --> 0:12:31.440 two to interplay well. I expect these two to end 0:12:31.520 --> 0:12:34.600 up living harmoniously together. However, it is it is funny 0:12:34.600 --> 0:12:37.400 to hear that message of twenty four seven three sixty 0:12:37.440 --> 0:12:40.360 five coming from the Federal Reserve, which historically when you 0:12:40.400 --> 0:12:42.680 know a five day a week, you know, nine to 0:12:42.720 --> 0:12:44.840 five type of system. 0:12:44.080 --> 0:12:46.719 Talking about living harmoniously. You've been trying to live more 0:12:46.720 --> 0:12:50.360 harmoniously with banks, but it was what year or so 0:12:50.440 --> 0:12:53.120 ago that Visa was trying to buy you. And now 0:12:53.160 --> 0:12:55.360 basically you're becoming more and more of a competitive threat. 0:12:56.080 --> 0:12:59.000 When can you use erp Visa? When do you think 0:12:59.040 --> 0:13:01.040 you will be a dominant force within payments? 0:13:01.920 --> 0:13:05.120 You know, broadly, we think about Visa as a very 0:13:05.160 --> 0:13:08.760 interesting corollary, a partner, and we know many people there personally, 0:13:08.800 --> 0:13:11.040 so I think of them as friends. The way that 0:13:11.040 --> 0:13:13.160 we think about our business is slightly different. It's a 0:13:13.160 --> 0:13:16.360 different vector than Visa itself. We focus on enabling a 0:13:16.360 --> 0:13:18.920 consumer to connect their financial account to an application that 0:13:18.960 --> 0:13:21.720 they want to use to get real time value from 0:13:21.760 --> 0:13:25.240 their data, and yes, to enable bankings payments. That's not 0:13:25.280 --> 0:13:28.240 to say though, that debit cards or credit cards or 0:13:28.280 --> 0:13:30.360 any of the existing payment rails are going to go away. 0:13:30.600 --> 0:13:33.200 We think about adding another option coming through FED now 0:13:33.240 --> 0:13:35.560 as another choice for a consumer. It's another choice for 0:13:35.600 --> 0:13:37.480 a merchant, it's another choice for an application that might 0:13:37.520 --> 0:13:41.000 need to execute a funds transfer. And as we enter 0:13:41.080 --> 0:13:44.599 this new world of increasing competition, increasing choice, increasing optionality 0:13:44.600 --> 0:13:47.199 for consumer, we actually see the two living alongside each 0:13:47.240 --> 0:13:48.200 other for quite a long time. 0:13:50.559 --> 0:13:52.280 Zich. You mentioned competition. 0:13:52.960 --> 0:13:55.480 One domain where this is really playing out is in 0:13:55.600 --> 0:14:00.199 artificial intelligence, right, taking a large language model, use the 0:14:00.280 --> 0:14:03.040 underlying technology to improve your service. Can you just talk 0:14:03.040 --> 0:14:05.160 a little bit of how you're investing in that space, 0:14:05.480 --> 0:14:08.960 what types of engineers you're onboarding to help you be competitive. 0:14:09.520 --> 0:14:12.160 That's a great question and an area that we think 0:14:12.280 --> 0:14:16.880 quite a lot about. The reality is AI has two 0:14:16.960 --> 0:14:18.960 major ways that we'll probably see it play out in 0:14:19.000 --> 0:14:22.360 financial services. The first is very simple and straightforward, So 0:14:22.440 --> 0:14:24.800 it's helping all businesses be more efficient. So that's making 0:14:24.800 --> 0:14:26.680 our support team more efficient, that's making the way that 0:14:26.720 --> 0:14:30.040 we write code more efficient. That's generally implementing AI tools 0:14:30.040 --> 0:14:32.920 to improve employee efficiency, and it's no different in financial 0:14:32.920 --> 0:14:36.280 services versus any other tech enabled industry. The second is 0:14:36.320 --> 0:14:39.200 thinking about fundamentally new products that can only exist with 0:14:39.240 --> 0:14:41.280 the help of AI. So one of the areas that 0:14:41.320 --> 0:14:43.480 at Plaid we've been investing a lot in is building 0:14:43.480 --> 0:14:46.320 better tools for credit analytics and credit scoring. If you 0:14:46.360 --> 0:14:48.520 think back to the way that credit is scored today, 0:14:48.600 --> 0:14:50.200 or even the way that it was scored ten years ago, 0:14:50.400 --> 0:14:53.560 those two aren't all that different. We have a FICO score, 0:14:54.000 --> 0:14:56.280 there's perhaps a bit more data that's being added in. 0:14:56.760 --> 0:14:59.640 At Plaid, we focus on building tooling to enable better 0:14:59.720 --> 0:15:02.400 data go into your loan package. So if you're applying 0:15:02.440 --> 0:15:05.320 for a loan, you're perhaps someone that lived internationally is 0:15:05.360 --> 0:15:06.960 just moving back to the US. You don't have a 0:15:06.960 --> 0:15:08.960 lot of employment history in the US, but you do 0:15:09.000 --> 0:15:11.200 have fairly good income and fairly good assets. How can 0:15:11.240 --> 0:15:13.360 you get all that data into your loan package. Well, 0:15:13.800 --> 0:15:16.080 PLoud builds a lot of that. The next phase that 0:15:16.400 --> 0:15:18.320 I'm eager to dive into is thinking about how can 0:15:18.360 --> 0:15:22.000 AI help inform those models make better predictions about what 0:15:22.000 --> 0:15:24.080 a consumer is likely to be able to borrow, what 0:15:24.120 --> 0:15:27.040 they're likely going to be able to pay back, and 0:15:27.080 --> 0:15:28.960 how that's going to work. Now, we have a long 0:15:29.000 --> 0:15:30.880 way to go in terms of working with the regulators 0:15:30.920 --> 0:15:33.440 to figure out how exactly we can and when we 0:15:33.480 --> 0:15:37.640 should implement AI models for lending import lending decisions. But 0:15:37.680 --> 0:15:39.120 I'm excited to go on that journey and I think 0:15:39.120 --> 0:15:41.840 that there's a very big opportunity for us all ahead. 0:15:42.840 --> 0:15:45.240 Zach Ai and the context of lending is a conversation 0:15:45.360 --> 0:15:47.120 we're keen to dive into as well. 0:15:47.320 --> 0:15:48.680 We're just out of time for today. 0:15:48.720 --> 0:15:51.360 Thanks to Zach Perry, the Plaid CEO out there in 0:15:51.440 --> 0:16:05.120 New York. 0:16:00.320 --> 0:16:01.280 Time for talking tech. 0:16:01.360 --> 0:16:05.520 First up, China vuying to boost investments in its technology sector. 0:16:05.800 --> 0:16:09.160 Central Bank officials are asking lenders to help fund research 0:16:09.480 --> 0:16:12.720 and tech related acquisitions in order to revive a private 0:16:12.720 --> 0:16:16.760 sector that's frankly been hit with regulatory curbs. Also, Commerce 0:16:16.760 --> 0:16:20.320 Secretary Gina Romondo says that actions needed from the US 0:16:20.400 --> 0:16:24.560 and its allies in order to fight a surplus in semiconductors. 0:16:24.640 --> 0:16:26.120 Raimondo pointed the finger. 0:16:25.920 --> 0:16:30.080 At China's aggressive subsidies and called for more export controls 0:16:30.120 --> 0:16:33.800 and domestic incentives in order to alleviate the glup plus 0:16:33.800 --> 0:16:36.640 the Pentagon planning to issue a first time contract to 0:16:36.720 --> 0:16:40.640 US or Canadian companies for gallium. This comes after China 0:16:40.920 --> 0:16:44.600 curbed exports on gallium and germanium minerals, which are crucial 0:16:44.680 --> 0:16:47.800 to semiconductors and military radar systems. 0:16:47.800 --> 0:16:48.520 Caroline. 0:16:48.800 --> 0:16:52.240 Meanwhile, let's just talk Tesla from an end because five 0:16:52.360 --> 0:16:54.920 years it is now since Tesla's Model three electric car 0:16:54.920 --> 0:16:56.760 actually hit the market, and in an effort to kind 0:16:56.760 --> 0:16:59.000 of assess the mood of consumers, Bluemeg's serving more than 0:16:59.080 --> 0:17:02.800 seven thousand me fined owners about their experience five years on. Look, 0:17:02.800 --> 0:17:04.719 we're doing it again. We're following up with those thousands 0:17:04.760 --> 0:17:08.479 of original responders. And there's one key theme that starting 0:17:08.560 --> 0:17:11.560 out owners may love their cars, but they've soured on 0:17:11.640 --> 0:17:14.200 the big boss behind Tesla. Of course, that's seen a musk. 0:17:14.520 --> 0:17:17.560 Today's big take showing us now for more is Bloomberg's 0:17:17.680 --> 0:17:22.080 Tom at Randall and Tom, I mean, perhaps we're not surprised, 0:17:22.600 --> 0:17:25.520 but isn't in any way starting to put off people 0:17:25.560 --> 0:17:30.000 buying another car or investing further in the Tesla ecosystem. 0:17:30.080 --> 0:17:31.600 Well, that was definitely one of the questions that we 0:17:31.600 --> 0:17:33.880 wanted to kind of get at through the survey, and 0:17:33.920 --> 0:17:36.800 we are actually seeing some of that. You know, my 0:17:36.840 --> 0:17:39.880 initial theory was that it wasn't flowing through because you see, 0:17:39.960 --> 0:17:42.239 you know, Tesla is still experiencing huge sales of all 0:17:42.280 --> 0:17:46.080 of its cars, tons of demand, but we really do 0:17:46.160 --> 0:17:49.520 see it was a very strong reaction that we received 0:17:49.560 --> 0:17:51.800 and you can you can feel it in the comments. 0:17:52.440 --> 0:17:57.760 People feel kind of betrayed in a way, and we 0:17:57.840 --> 0:17:59.879 did start to tie it to their buying behavior. So 0:18:00.000 --> 0:18:02.440 people who are looking at a future vehicle right now 0:18:02.480 --> 0:18:04.520 and then for in the next two years, we asked 0:18:04.520 --> 0:18:06.680 them what kind of cars that they were looking for, 0:18:06.720 --> 0:18:09.280 and the demand for Tesla is still incredibly strong from 0:18:09.280 --> 0:18:11.760 those people. It's eighty seven percent of the people were 0:18:11.800 --> 0:18:15.600 looking at a Tesla, so that seems really high. 0:18:15.600 --> 0:18:17.000 But if you look at the people. 0:18:16.720 --> 0:18:19.600 Who are not looking at a Tesla, it's all because 0:18:19.600 --> 0:18:22.240 of Elan. He was the number one reason for them 0:18:22.280 --> 0:18:27.159 not looking at another Tesla. And you never see that 0:18:27.240 --> 0:18:30.680 kind of correlation between a CEO and the products in 0:18:30.720 --> 0:18:33.919 the product making decisions. And so what we saw was 0:18:33.960 --> 0:18:37.920 even among these people who were turning away like they 0:18:37.920 --> 0:18:40.439 still love their cars, and a lot of their comments 0:18:40.560 --> 0:18:41.040 voiced that. 0:18:43.000 --> 0:18:46.400 It was tad the questions, The questions were the beatum 0:18:46.480 --> 0:18:49.800 the same post this year is when you first started. 0:18:50.119 --> 0:18:53.480 How else have the responses shifted very quickly? 0:18:54.600 --> 0:18:56.520 I'm sorry, I'm sorry I missed the first part of 0:18:56.560 --> 0:19:01.720 your question. But the shifting responses since twenty nineteen, the 0:19:01.840 --> 0:19:06.120 number one question, the number one shift was in Elon's sentiment. 0:19:06.480 --> 0:19:09.280 There was nothing even kind of close to it. And 0:19:09.320 --> 0:19:11.280 in fact, out of one hundred and fifty questions that 0:19:11.320 --> 0:19:16.120 we asked, the questions about Twitter and Elon's tweets kind 0:19:16.119 --> 0:19:20.040 of after the acquisition were the worst scoring among all 0:19:20.080 --> 0:19:20.960 of them. 0:19:21.160 --> 0:19:23.679 All Right, Bloomberg's Tom Randa with the big take on Tesla. 0:19:23.800 --> 0:19:33.040 Check it out on Bloomberg dot com. 0:19:33.200 --> 0:19:35.159 Welcome back to Bluemok Technology. I'm Caroen hide in. 0:19:35.160 --> 0:19:37.680 New York and ed lolow out here in San Francisco. 0:19:37.760 --> 0:19:40.440 We now want to welcome on Bloomberg radio and TV 0:19:40.520 --> 0:19:44.679 audiences worldwide. We want to deep even deeper into Meta's 0:19:44.680 --> 0:19:47.560 earnings reports, CEO Mark Zuckerberg saying, look quote, we continue 0:19:47.560 --> 0:19:49.600 to see strong engagement across our apps, with the most 0:19:49.600 --> 0:19:52.320 exciting roadmap I've seen in a while. Our investments in 0:19:52.359 --> 0:19:56.160 AI will continue. We remain fully committed to the metaverse 0:19:56.240 --> 0:19:59.760 vision as well. Let's again further with Meta chief financial 0:19:59.760 --> 0:20:02.880 offer Susan Lee joining us. And it's not just Mark 0:20:02.920 --> 0:20:08.439 finding things, exciting investors, analysts, upgrading exciting economy for the 0:20:08.480 --> 0:20:11.199