1 00:00:02,520 --> 00:00:09,160 Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of 2 00:00:09,240 --> 00:00:14,960 Speaker 1: where innovation, money and power collide in Silicon Valley and beyond. 3 00:00:15,400 --> 00:00:39,680 Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 4 00:00:36,000 --> 00:00:37,280 Speaker 2: Live from San Francisco. 5 00:00:37,400 --> 00:00:40,279 Speaker 3: This is a special edition of Bloomberg Technology Live from 6 00:00:40,280 --> 00:00:41,320 Speaker 3: the Bloomberg Tech Summit. 7 00:00:41,479 --> 00:00:41,680 Speaker 4: Yeah. 8 00:00:41,680 --> 00:00:45,120 Speaker 5: Absolutely, leaders from across tech and business Gavitt here to 9 00:00:45,159 --> 00:00:48,879 Speaker 5: discuss how they're going to navigate economic, geopolitical uncertainty and 10 00:00:49,000 --> 00:00:51,519 Speaker 5: multiply the opportunities in that landscape. 11 00:00:51,520 --> 00:00:53,160 Speaker 4: We'll be hearing from some of those speakers. 12 00:00:53,200 --> 00:00:56,320 Speaker 5: We kicked it off last night with incredible conversations with 13 00:00:56,360 --> 00:00:59,920 Speaker 5: Alphabets and the pitch I metus Andrew Bosworth right now. 14 00:01:00,000 --> 00:01:02,520 Speaker 5: Now the tech sector is also very focused. Caro and 15 00:01:02,600 --> 00:01:06,080 Speaker 5: markets are right about the discussion between President Trump and 16 00:01:06,200 --> 00:01:07,559 Speaker 5: China's EUGENPI. 17 00:01:07,240 --> 00:01:09,720 Speaker 3: And it's giving a positive spin to markets and as 18 00:01:09,760 --> 00:01:11,840 Speaker 3: that coming out of its lows, we're now training higher. 19 00:01:11,840 --> 00:01:14,560 Speaker 3: Look not gargantuan moves. We're up about three or four 20 00:01:14,600 --> 00:01:17,000 Speaker 3: tenths of a percent on the NASAK one hundreds you'll see, 21 00:01:17,160 --> 00:01:20,399 Speaker 3: but we are trending higher as we see a positive 22 00:01:20,440 --> 00:01:23,000 Speaker 3: signal coming from President Trump that they're going to be meeting. 23 00:01:22,800 --> 00:01:25,120 Speaker 2: Yet further with it, cause the first. 24 00:01:24,959 --> 00:01:27,880 Speaker 3: Lady going to China and indeed a reciprocal kind of 25 00:01:28,080 --> 00:01:30,360 Speaker 3: discussion coming with the Chinese leaders come to the US. 26 00:01:30,360 --> 00:01:33,320 Speaker 2: But more broadly, rare Earth. Is there any clarity on 27 00:01:33,400 --> 00:01:34,479 Speaker 2: rare Earth? That's we want to hear. 28 00:01:34,720 --> 00:01:37,759 Speaker 5: Let's get some news breaking out of the Bloomberg Tech Summit. Anderil, 29 00:01:37,800 --> 00:01:40,840 Speaker 5: the defense tech company that's quickly become a major player 30 00:01:41,160 --> 00:01:44,760 Speaker 5: in US national security, has just closed its latest funding 31 00:01:44,760 --> 00:01:47,160 Speaker 5: around joining us for more is Trey Stevens, co founder 32 00:01:47,319 --> 00:01:50,280 Speaker 5: and executive chairman of Anderil, is also a partner at 33 00:01:50,280 --> 00:01:53,160 Speaker 5: Founder's Fund. He will be a speaker as well at 34 00:01:53,160 --> 00:01:58,000 Speaker 5: the Tech summit later today. Trey, good morning, congratulations, This 35 00:01:58,040 --> 00:02:01,400 Speaker 5: is Series G. What are the details and this seems 36 00:02:01,440 --> 00:02:02,960 Speaker 5: meaningful for Anderill? 37 00:02:03,120 --> 00:02:05,880 Speaker 6: It is, you know, as we continue working on building 38 00:02:05,920 --> 00:02:08,400 Speaker 6: a company that has the capacity to scale into the 39 00:02:08,480 --> 00:02:11,480 Speaker 6: largest problems for the national security community, we thought it 40 00:02:11,520 --> 00:02:14,160 Speaker 6: was really important to shore up the balance sheet and 41 00:02:14,200 --> 00:02:16,280 Speaker 6: make sure that we have the ability to deploy capital 42 00:02:16,320 --> 00:02:20,040 Speaker 6: into these manufacturing and production problem sets that we're working on. 43 00:02:20,600 --> 00:02:22,360 Speaker 6: The round ended up being a two and a half 44 00:02:22,400 --> 00:02:25,800 Speaker 6: billion dollar round at an evaluation of thirty point five 45 00:02:25,880 --> 00:02:29,560 Speaker 6: billion post money. It's a tremendous opportunity for us to 46 00:02:29,600 --> 00:02:33,160 Speaker 6: continue growing the team, growing the infrastructure in our ability 47 00:02:33,200 --> 00:02:35,880 Speaker 6: to really ramp up into these bigger problems. 48 00:02:35,680 --> 00:02:37,480 Speaker 4: At sound is fund led around. 49 00:02:37,840 --> 00:02:40,399 Speaker 5: You have an interesting role as executive chair at Anderill, 50 00:02:41,800 --> 00:02:44,119 Speaker 5: but you reccuse yourself from the found This fun part 51 00:02:44,200 --> 00:02:47,480 Speaker 5: of that, I believe right like one of it's not 52 00:02:47,520 --> 00:02:48,560 Speaker 5: their biggest check ever. 53 00:02:48,800 --> 00:02:50,880 Speaker 7: Yeah, the largest check and founders on history. 54 00:02:51,120 --> 00:02:53,040 Speaker 6: We put one billion dollars into the two and a 55 00:02:53,080 --> 00:02:54,080 Speaker 6: half billion dollar round. 56 00:02:55,120 --> 00:02:59,520 Speaker 3: Okay, why is this commitment, this necessary money right here, 57 00:02:59,600 --> 00:02:59,880 Speaker 3: right now? 58 00:03:00,040 --> 00:03:02,320 Speaker 2: Is this gonna be the last one before a potential IPO? 59 00:03:02,840 --> 00:03:04,600 Speaker 6: Oh man, it's a great question. You know, there are 60 00:03:04,639 --> 00:03:06,600 Speaker 6: a lot of ways to raise capital. It's not just 61 00:03:06,760 --> 00:03:09,800 Speaker 6: the possibility by po Obviously, long term, we continue to 62 00:03:09,800 --> 00:03:13,680 Speaker 6: believe that andrel is the shape of a publicly traded company. 63 00:03:14,280 --> 00:03:17,040 Speaker 6: We're not in any you know, rapid path to doing that. 64 00:03:17,600 --> 00:03:20,200 Speaker 6: We're certainly, you know, going through the processes that are 65 00:03:20,200 --> 00:03:22,880 Speaker 6: required to prepare for doing something like that in you know, 66 00:03:22,960 --> 00:03:26,560 Speaker 6: the medium term. But right now we're just very focused 67 00:03:26,600 --> 00:03:29,200 Speaker 6: on the mission at hand. Going at this as hard 68 00:03:29,200 --> 00:03:31,120 Speaker 6: as we can. Does that mean we raised another private 69 00:03:31,160 --> 00:03:33,840 Speaker 6: round of capital at some point? Maybe hard to say. 70 00:03:34,480 --> 00:03:37,120 Speaker 6: You know, we're always surprised at how how much demand 71 00:03:37,240 --> 00:03:40,680 Speaker 6: there is in these massively over subscriber on how the 72 00:03:40,760 --> 00:03:44,480 Speaker 6: subscribed space it was a lot like eight to ten 73 00:03:44,720 --> 00:03:46,800 Speaker 6: x of what we had the capacity to take on. 74 00:03:47,680 --> 00:03:50,040 Speaker 6: You know, there's a lot of players that are starting 75 00:03:50,080 --> 00:03:54,040 Speaker 6: to figure out that the momentum is drolling into you know, 76 00:03:54,200 --> 00:03:57,360 Speaker 6: being able to do this at Androil, and I think 77 00:03:57,400 --> 00:03:59,080 Speaker 6: there's just a lot of a lot of interest from 78 00:03:59,080 --> 00:04:02,160 Speaker 6: growth funds, across server fonds, from mutual funds for getting 79 00:04:02,160 --> 00:04:04,640 Speaker 6: a bite of that before there's a public market opportunity. 80 00:04:04,800 --> 00:04:07,960 Speaker 3: Well interesting, you say, getting a bite of the action 81 00:04:08,120 --> 00:04:11,920 Speaker 3: when it comes more broadly to defense, Suddenly all the 82 00:04:11,920 --> 00:04:14,160 Speaker 3: Silicon Valley kind of wants to be in defense and 83 00:04:14,200 --> 00:04:17,760 Speaker 3: in US manufacturing. In fact, Boz Andrew Bosworth of Meta 84 00:04:17,920 --> 00:04:21,640 Speaker 3: yesterday talking about how maybe there's some bigger patriotism than 85 00:04:21,640 --> 00:04:22,920 Speaker 3: we realized across Silicon Valley. 86 00:04:22,960 --> 00:04:23,520 Speaker 2: Just take a listen. 87 00:04:24,440 --> 00:04:27,880 Speaker 8: There's a much stronger patriotic underpinning that I think people 88 00:04:27,920 --> 00:04:30,880 Speaker 8: give Silicon Valley credit for. But taking a step deeper, 89 00:04:31,760 --> 00:04:35,080 Speaker 8: this is actually a return to grace for the Valley, 90 00:04:35,080 --> 00:04:38,320 Speaker 8: potentially not just from Meta, but from Google and other companies. 91 00:04:38,800 --> 00:04:42,400 Speaker 8: The Valley was founded on a three way investment between 92 00:04:42,440 --> 00:04:46,479 Speaker 8: the military, academics and private industry. That was the founding 93 00:04:46,520 --> 00:04:49,080 Speaker 8: of it. There would be no technology if we weren't 94 00:04:49,120 --> 00:04:53,039 Speaker 8: all tasked with the problem of computing naval ballistic trajectories 95 00:04:54,320 --> 00:04:55,640 Speaker 8: during the first two World Wars. 96 00:04:57,120 --> 00:05:00,760 Speaker 3: You have a partnership the technology that Meta makes working 97 00:05:00,760 --> 00:05:01,799 Speaker 3: hand in hand with Andreil. 98 00:05:01,880 --> 00:05:04,000 Speaker 2: Interesting of course that Palmer. 99 00:05:03,800 --> 00:05:06,080 Speaker 3: Lucky now goes back to a company that he have 100 00:05:06,160 --> 00:05:08,520 Speaker 3: caused sold Oculus to in many ways with this partnership, 101 00:05:09,080 --> 00:05:10,880 Speaker 3: what does it look like in more partnership is going 102 00:05:10,880 --> 00:05:12,279 Speaker 3: to be erupting him? 103 00:05:12,720 --> 00:05:16,000 Speaker 6: Well, I mean to Bas's point. You know, the world 104 00:05:16,000 --> 00:05:18,960 Speaker 6: has changed a lot in the last eight years. Andrew 105 00:05:19,000 --> 00:05:23,280 Speaker 6: actually turns eight years old tomorrow. We're approaching our anniversary, 106 00:05:23,320 --> 00:05:25,520 Speaker 6: which is the anniversary of D Day as well. We 107 00:05:25,560 --> 00:05:28,039 Speaker 6: started the company on the seventy third anniversary of D Day, 108 00:05:28,480 --> 00:05:32,800 Speaker 6: recognizing there's an important contribution for not only ourselves but 109 00:05:32,839 --> 00:05:37,719 Speaker 6: also the American enterprise into national security efforts. 110 00:05:38,360 --> 00:05:40,000 Speaker 7: You know, Palmer was fired. 111 00:05:39,720 --> 00:05:42,760 Speaker 6: By Meta in twenty sixteen for his politics. You know, 112 00:05:42,839 --> 00:05:46,960 Speaker 6: there's a Google Maven walkouts and protests. The reality is 113 00:05:46,960 --> 00:05:50,479 Speaker 6: is that the silent majority actually believes that these things 114 00:05:50,520 --> 00:05:53,240 Speaker 6: are really, really important to work on, and you know, 115 00:05:53,440 --> 00:05:55,440 Speaker 6: Palmer being able to go back to his roots and 116 00:05:55,520 --> 00:05:57,880 Speaker 6: reach a point of forgiveness with the Meta team to 117 00:05:57,960 --> 00:06:00,400 Speaker 6: focus on the most important task at hand, which is 118 00:06:00,720 --> 00:06:05,480 Speaker 6: leaning in on the best in class optics and VRAR 119 00:06:05,600 --> 00:06:07,839 Speaker 6: work that they're doing to contribute to the mission that 120 00:06:07,880 --> 00:06:10,440 Speaker 6: we're leading with the IBS opportunity with the DoD. 121 00:06:10,600 --> 00:06:13,159 Speaker 5: What was really interesting about how Buzz explained it is 122 00:06:13,200 --> 00:06:16,960 Speaker 5: that they are basically providing components. We actually had delian 123 00:06:17,200 --> 00:06:18,719 Speaker 5: As off on the show the other day in the 124 00:06:18,760 --> 00:06:21,320 Speaker 5: context of founders and in Duro sat and what he 125 00:06:21,400 --> 00:06:25,359 Speaker 5: was talking about is that the innovation of big tech 126 00:06:25,680 --> 00:06:29,080 Speaker 5: is being driven by consumer electronics, right, and thinking about 127 00:06:29,120 --> 00:06:32,000 Speaker 5: your supply chain. Could you just explain mechanics of how 128 00:06:32,400 --> 00:06:34,920 Speaker 5: Meta works with you and why it's useful to you 129 00:06:35,320 --> 00:06:37,480 Speaker 5: for them to come up with these components in the 130 00:06:37,839 --> 00:06:39,240 Speaker 5: products that you want to do, right. 131 00:06:39,279 --> 00:06:42,240 Speaker 6: I mean, they're obviously they've done an incredible amount for 132 00:06:42,360 --> 00:06:45,839 Speaker 6: the ar VR community. I think Palmer has been on 133 00:06:45,920 --> 00:06:49,560 Speaker 6: record many times saying that Zuckerberg is VR boy number one. 134 00:06:50,000 --> 00:06:51,400 Speaker 7: He's led the way. 135 00:06:51,240 --> 00:06:53,279 Speaker 6: With putting a ton of capital into solving some of 136 00:06:53,320 --> 00:06:56,960 Speaker 6: these basic science and research problems around optics, you know, 137 00:06:57,000 --> 00:07:00,279 Speaker 6: the physics challenges that make this really difficult. You know, 138 00:07:00,279 --> 00:07:02,680 Speaker 6: we don't have to take all of that on ourselves. 139 00:07:02,880 --> 00:07:05,160 Speaker 6: We can go and partner with someone in America who 140 00:07:05,200 --> 00:07:07,560 Speaker 6: believes in the mission, who's done a lot of that work, 141 00:07:07,600 --> 00:07:09,800 Speaker 6: and then we can bring that into an integrated system, 142 00:07:09,880 --> 00:07:12,360 Speaker 6: which is really what we do as a defense products company. 143 00:07:12,760 --> 00:07:17,200 Speaker 5: Let's talk politics. You talked about Palmer's politics. You know, 144 00:07:17,240 --> 00:07:22,400 Speaker 5: the story today is about President Trump speaking with China's 145 00:07:22,480 --> 00:07:26,360 Speaker 5: using pain, and at the heart of that is rare earths. 146 00:07:27,040 --> 00:07:30,680 Speaker 5: But I actually think for you guys, you've historically when 147 00:07:30,680 --> 00:07:33,960 Speaker 5: we've discussed China taken a different approach, which is, you 148 00:07:34,040 --> 00:07:39,840 Speaker 5: believe anderall is critically important now because of future hostilities 149 00:07:40,080 --> 00:07:40,920 Speaker 5: from China. 150 00:07:41,120 --> 00:07:42,840 Speaker 4: Just explain that that thesis. 151 00:07:43,480 --> 00:07:46,520 Speaker 6: Yeah, I mean, obviously there's a huge supply chain component 152 00:07:46,600 --> 00:07:48,960 Speaker 6: to all of this. China is right in the middle 153 00:07:49,040 --> 00:07:52,680 Speaker 6: of most of these conversations around manufacturing production, supply chain 154 00:07:53,120 --> 00:07:54,720 Speaker 6: challenges with natural. 155 00:07:54,400 --> 00:07:56,360 Speaker 7: Resources, including raress medals. 156 00:07:57,240 --> 00:07:59,520 Speaker 6: You know at ANDROL We've been thinking about this long 157 00:07:59,600 --> 00:08:03,200 Speaker 6: before the you know, the second Trump administration started. We've 158 00:08:03,240 --> 00:08:05,160 Speaker 6: been shoring up to make sure that our Tier one 159 00:08:05,200 --> 00:08:09,320 Speaker 6: suppliers are being sourced from allied nations, the US and 160 00:08:09,360 --> 00:08:10,239 Speaker 6: our allied nations. 161 00:08:11,040 --> 00:08:13,160 Speaker 7: And you know, for the first time ever, I. 162 00:08:13,160 --> 00:08:16,520 Speaker 6: Think that the entirety of the government is taking supply 163 00:08:16,640 --> 00:08:19,240 Speaker 6: chain and seriously as a national security asset rather than 164 00:08:19,360 --> 00:08:21,920 Speaker 6: just something that's kind of like important from a trade context. 165 00:08:22,000 --> 00:08:25,280 Speaker 6: So I think it's incredibly critical that we don't wait 166 00:08:25,400 --> 00:08:29,000 Speaker 6: until we have you know, our access to critical materials, 167 00:08:29,040 --> 00:08:32,040 Speaker 6: our access to chips, our access to all of these 168 00:08:32,080 --> 00:08:33,120 Speaker 6: things removed from. 169 00:08:33,080 --> 00:08:34,480 Speaker 2: US we need already happening. 170 00:08:34,760 --> 00:08:37,200 Speaker 3: Isn't there a limitation already on rare US And how 171 00:08:37,200 --> 00:08:38,240 Speaker 3: does that impact your business? 172 00:08:38,360 --> 00:08:40,040 Speaker 7: There is? And you know, this is the type of 173 00:08:40,080 --> 00:08:40,360 Speaker 7: thing that. 174 00:08:40,320 --> 00:08:42,520 Speaker 6: You have to plan for well ahead of time, believing 175 00:08:42,559 --> 00:08:45,240 Speaker 6: that at some point, yeah, we might lose access. And 176 00:08:45,280 --> 00:08:49,920 Speaker 6: I think all you know, intelligent and thoughtful American companies 177 00:08:49,960 --> 00:08:51,800 Speaker 6: need to be thinking about how to how to address 178 00:08:51,840 --> 00:08:55,240 Speaker 6: that problem before it actually becomes a really critical existential threat. 179 00:08:55,320 --> 00:08:57,880 Speaker 3: Well, has the administration been doing it in a methodical 180 00:08:57,880 --> 00:08:59,880 Speaker 3: manner that you wanted to see because at times has 181 00:08:59,880 --> 00:09:02,720 Speaker 3: been and worry about basically the timeframes that we get 182 00:09:02,720 --> 00:09:05,199 Speaker 3: cut off too quickly before the US has really understood 183 00:09:05,200 --> 00:09:08,120 Speaker 3: its own supply chain and resources. Many companies haven't been 184 00:09:08,160 --> 00:09:09,600 Speaker 3: looking at this as well as Andrew. 185 00:09:09,800 --> 00:09:12,000 Speaker 6: Absolutely, yeah, I mean and Andrew, certainly, we've been thinking 186 00:09:12,000 --> 00:09:14,240 Speaker 6: about it a lot, and through the founders on context, 187 00:09:14,280 --> 00:09:16,319 Speaker 6: I spend most of my day thinking. 188 00:09:16,040 --> 00:09:17,880 Speaker 7: About this exact problem. 189 00:09:17,960 --> 00:09:20,160 Speaker 6: You know that g has said very clearly that he 190 00:09:20,240 --> 00:09:23,800 Speaker 6: intends to you know, reclaim Taiwan by twenty twenty seven. 191 00:09:23,840 --> 00:09:25,320 Speaker 7: That's a really short timeline. 192 00:09:25,400 --> 00:09:27,640 Speaker 6: That doesn't mean that we have five or ten years 193 00:09:27,679 --> 00:09:30,600 Speaker 6: to build up semiconductor of manufacturing capabilities. It means that 194 00:09:30,760 --> 00:09:34,520 Speaker 6: we have like two years eighteen months, and so, you know, 195 00:09:34,559 --> 00:09:36,320 Speaker 6: we really need to be thinking about these things. 196 00:09:36,360 --> 00:09:38,280 Speaker 7: I think there's it's incumbent upon. 197 00:09:38,160 --> 00:09:41,480 Speaker 6: The US tech community to contribute in ways. It's incumbent 198 00:09:41,520 --> 00:09:44,120 Speaker 6: upon the US venture community to put capital towards solving 199 00:09:44,120 --> 00:09:47,440 Speaker 6: some of these problems, and certainly every company needs to 200 00:09:47,440 --> 00:09:49,520 Speaker 6: have a plan for how they're going to address that 201 00:09:49,559 --> 00:09:50,840 Speaker 6: should it become a real issue. 202 00:09:52,000 --> 00:09:52,720 Speaker 4: Golden Dome. 203 00:09:54,559 --> 00:09:58,920 Speaker 6: Golden Dome, Yes, you know, obviously there's very few things 204 00:09:58,960 --> 00:10:00,880 Speaker 6: as exciting as the idea of protecting the. 205 00:10:00,880 --> 00:10:03,240 Speaker 7: U s homeland from airborne threats. 206 00:10:03,960 --> 00:10:06,000 Speaker 6: You know, we've been engaged in a lot of conversations 207 00:10:06,040 --> 00:10:08,360 Speaker 6: there too soon to comment on anything. 208 00:10:08,480 --> 00:10:09,640 Speaker 4: That's my understanding, though. 209 00:10:09,640 --> 00:10:12,280 Speaker 5: So when this big announcement happened at the White House, 210 00:10:13,040 --> 00:10:16,000 Speaker 5: there were some of the sort of legacy prime defense 211 00:10:16,000 --> 00:10:19,480 Speaker 5: contractors named Lockheed Martin being one, and a lot of 212 00:10:19,480 --> 00:10:21,719 Speaker 5: people that I speak to are surprised that the name 213 00:10:21,800 --> 00:10:25,000 Speaker 5: Anderill wasn't said over and over again because of the 214 00:10:25,040 --> 00:10:30,000 Speaker 5: position you now have as a supplier to the US 215 00:10:30,120 --> 00:10:34,240 Speaker 5: military apparatus. But it is early in this process. I 216 00:10:34,280 --> 00:10:36,800 Speaker 5: guess the point is what will happen. Do you have 217 00:10:36,880 --> 00:10:41,079 Speaker 5: to make pitches and competitive bids and say here's what 218 00:10:41,120 --> 00:10:43,800 Speaker 5: we can offer in this or is it a case 219 00:10:43,840 --> 00:10:46,040 Speaker 5: of the administration come into you and say do this 220 00:10:46,200 --> 00:10:46,680 Speaker 5: for us. 221 00:10:47,000 --> 00:10:50,080 Speaker 6: Well, it'll obviously have to be a tremendously multi layered approach. 222 00:10:50,120 --> 00:10:52,520 Speaker 6: There's not going to be a single vendor that provides 223 00:10:52,600 --> 00:10:56,120 Speaker 6: the entirety of this system. You know, there's interfectors, interceptors, 224 00:10:56,200 --> 00:10:59,520 Speaker 6: things like that, space based interceptors, you know, all the 225 00:10:59,559 --> 00:11:01,560 Speaker 6: censored works that are going to be required, and then 226 00:11:01,600 --> 00:11:04,719 Speaker 6: a software layer to coordinate and see two all of. 227 00:11:04,679 --> 00:11:06,120 Speaker 7: That activity that's going on. 228 00:11:06,960 --> 00:11:09,920 Speaker 6: So you know, it's not just going to be Andrew, 229 00:11:09,920 --> 00:11:12,240 Speaker 6: It's not just going to be Lackey Martin. I believe 230 00:11:12,280 --> 00:11:15,000 Speaker 6: that it will likely be a you know, a mosaic 231 00:11:15,200 --> 00:11:17,400 Speaker 6: of a lot of different companies coming together to make 232 00:11:17,440 --> 00:11:19,520 Speaker 6: sure that this problem is solved in the best way possible. 233 00:11:19,559 --> 00:11:23,080 Speaker 3: You talk about space, there is one particular founder who 234 00:11:23,120 --> 00:11:25,000 Speaker 3: is very close to the White House who now seems 235 00:11:25,040 --> 00:11:26,840 Speaker 3: to be less close, and it's Elon Musk. How are 236 00:11:26,880 --> 00:11:30,800 Speaker 3: you seeing the relationship of venture with the administration right now? 237 00:11:30,840 --> 00:11:34,559 Speaker 3: And is there a repercussion as Elon withdraws and then 238 00:11:34,920 --> 00:11:37,240 Speaker 3: seemingly gets pretty angry at the state of the current 239 00:11:37,679 --> 00:11:39,760 Speaker 3: spending mill or at least the way he sees it 240 00:11:39,760 --> 00:11:41,679 Speaker 3: as a spending bill, they says reconciliation. 241 00:11:42,120 --> 00:11:44,960 Speaker 6: Yeah, well, I mean we're still very kind of near 242 00:11:45,000 --> 00:11:47,360 Speaker 6: in on the start of the administration. We're only what 243 00:11:47,480 --> 00:11:51,240 Speaker 6: five months into things right now. I do think that 244 00:11:51,280 --> 00:11:55,160 Speaker 6: this administration is incredibly communicative with the tech community, with 245 00:11:55,240 --> 00:11:59,040 Speaker 6: the venture community. The channels are open, they're curious, they're 246 00:11:59,080 --> 00:12:00,439 Speaker 6: looking for information. 247 00:12:00,480 --> 00:12:02,400 Speaker 2: Do you have a direct line with President Trump at all? 248 00:12:03,400 --> 00:12:06,720 Speaker 6: There's lots of paths into the White House without without 249 00:12:06,760 --> 00:12:10,240 Speaker 6: without commenting any further on that. But yeah, I think 250 00:12:10,280 --> 00:12:12,440 Speaker 6: I think that there's a tremendous openness to having that 251 00:12:12,559 --> 00:12:15,240 Speaker 6: dialogue a lot of these initiatives, whether you're talking about 252 00:12:15,240 --> 00:12:18,200 Speaker 6: the big beautiful bill. You know, I like what Elon said, 253 00:12:18,200 --> 00:12:20,160 Speaker 6: it's difficult for a bit a bill to be both 254 00:12:20,160 --> 00:12:22,120 Speaker 6: big and beautiful. It can be big or it can 255 00:12:22,160 --> 00:12:24,960 Speaker 6: be beautiful. It can't be both. But you know, I 256 00:12:25,000 --> 00:12:30,319 Speaker 6: think you know there's there's at least receptivity and we'll 257 00:12:30,320 --> 00:12:32,520 Speaker 6: see how some of these big programs, these big plans 258 00:12:32,600 --> 00:12:34,040 Speaker 6: shape over over the next year. 259 00:12:34,080 --> 00:12:36,600 Speaker 5: And the reason Carrie's question is important is you know, 260 00:12:36,679 --> 00:12:38,560 Speaker 5: you were part of the contingent that went to the 261 00:12:38,559 --> 00:12:41,679 Speaker 5: goal for the Middle East with the President in Corporate America. 262 00:12:42,040 --> 00:12:45,200 Speaker 5: Let's end here with a look at the future. After 263 00:12:45,240 --> 00:12:47,280 Speaker 5: you and I were together in Ohio in January, my 264 00:12:47,360 --> 00:12:50,640 Speaker 5: phone just kept ringing from private companies and startups that 265 00:12:50,679 --> 00:12:54,000 Speaker 5: are in the defense technology space. Is there a world 266 00:12:54,080 --> 00:12:57,160 Speaker 5: where andrel and three or four other players exist and 267 00:12:57,240 --> 00:12:59,920 Speaker 5: coexist or is it just anderill and nothing out. 268 00:13:00,480 --> 00:13:01,880 Speaker 6: Well, first of all, I want to say thanks for 269 00:13:01,920 --> 00:13:06,120 Speaker 6: coming to the Arsenal launch in thank You're one of 270 00:13:06,120 --> 00:13:09,240 Speaker 6: the few people X Androl who has even seen the 271 00:13:09,320 --> 00:13:11,360 Speaker 6: site in Ohio, so it was cool to have you out. 272 00:13:11,400 --> 00:13:12,360 Speaker 7: Thanks so much for doing that. 273 00:13:13,440 --> 00:13:16,440 Speaker 6: Yeah, you know, I think categories are tough, right, Like 274 00:13:16,640 --> 00:13:18,400 Speaker 6: there usually isn't such. 275 00:13:18,240 --> 00:13:19,840 Speaker 7: A thing as category investing. 276 00:13:19,960 --> 00:13:21,760 Speaker 6: You know, if you're a social media investor and you 277 00:13:21,800 --> 00:13:24,400 Speaker 6: didn't invest in Facebook, you probably lost money. If you're 278 00:13:24,400 --> 00:13:26,480 Speaker 6: a space investor and you didn't invest in SpaceX, you 279 00:13:26,480 --> 00:13:28,839 Speaker 6: probably lost money. Do I think that there's room for 280 00:13:28,880 --> 00:13:31,440 Speaker 6: a couple of players to make a big entry into 281 00:13:31,520 --> 00:13:33,760 Speaker 6: the defense space. Sure, I don't think there's going to 282 00:13:33,760 --> 00:13:36,760 Speaker 6: be multiple anerles. And that's really our goal is we're 283 00:13:36,760 --> 00:13:40,440 Speaker 6: trying to create a concentrated opportunity to be a next 284 00:13:40,480 --> 00:13:43,720 Speaker 6: generation defense products company that goes out and wins these 285 00:13:43,800 --> 00:13:46,559 Speaker 6: major programs where we're going to have the ability to 286 00:13:46,600 --> 00:13:51,760 Speaker 6: bring software, chops, the you know, autonomy, speed scale manufacturing 287 00:13:51,960 --> 00:13:54,640 Speaker 6: into the defense industry for the first time as a 288 00:13:54,640 --> 00:13:56,360 Speaker 6: new player in a really long time, a. 289 00:13:56,320 --> 00:13:58,839 Speaker 3: New player that is now worth one than thirty billion dollars, 290 00:13:58,880 --> 00:14:01,079 Speaker 3: just double the valuation having raised more than two billion. 291 00:14:01,120 --> 00:14:04,080 Speaker 3: Tracey Humans, it's a joy to have you Androil executive chairman, 292 00:14:04,240 --> 00:14:07,760 Speaker 3: founder's fun partner as well. Now so much more coming 293 00:14:07,840 --> 00:14:12,559 Speaker 3: up about clearly the future of AI. Alphabet CEO, son 294 00:14:12,600 --> 00:14:16,040 Speaker 3: of Pitchye, following his panel at Bloomberg Tech Summit last night, 295 00:14:16,160 --> 00:14:19,720 Speaker 3: talking about actually competition, I was looking at AI. 296 00:14:19,880 --> 00:14:20,920 Speaker 2: This is really big technology. 297 00:14:21,920 --> 00:14:25,440 Speaker 9: You know, there's no doubt to me that three years 298 00:14:25,480 --> 00:14:26,960 Speaker 9: from now there will be a company which will be 299 00:14:27,000 --> 00:14:29,240 Speaker 9: dominant in this AI age, which we don't even know 300 00:14:29,280 --> 00:14:30,120 Speaker 9: the name of today. 301 00:14:40,000 --> 00:14:42,880 Speaker 5: Welcome back to a special edition of Bloomberg Technology Live 302 00:14:42,920 --> 00:14:44,440 Speaker 5: from the Bloomberg Tech Summit. 303 00:14:44,560 --> 00:14:45,960 Speaker 4: Alphabet CEOs and the pitch I. 304 00:14:46,040 --> 00:14:49,760 Speaker 5: Says the company will continue to expand its engineering ranks 305 00:14:49,760 --> 00:14:54,080 Speaker 5: at least into twenty twenty six, emphasizing human talent remains 306 00:14:54,120 --> 00:14:57,000 Speaker 5: key despite AI investments. That was part of the discussion 307 00:14:57,040 --> 00:14:59,680 Speaker 5: with Bloomberg's Emily Chang last night when we kicked off 308 00:14:59,680 --> 00:15:00,200 Speaker 5: the tech. 309 00:15:00,040 --> 00:15:02,480 Speaker 4: Some of here in San Francisco. Here's more of that conversation. 310 00:15:03,440 --> 00:15:08,120 Speaker 9: In twenty twenty five, our capex is seventy five billion dollars, right, 311 00:15:08,200 --> 00:15:12,440 Speaker 9: so we are definitely investing for the long run. But 312 00:15:12,920 --> 00:15:17,680 Speaker 9: you know, it's the same investment which powers businesses from 313 00:15:17,840 --> 00:15:22,800 Speaker 9: search to YouTube to cloud, to workspace, to Android and 314 00:15:22,920 --> 00:15:26,840 Speaker 9: play to way more right and so, and to our 315 00:15:26,880 --> 00:15:31,840 Speaker 9: subscriptions business. We just launched Google AI pro and Ultra 316 00:15:32,000 --> 00:15:34,560 Speaker 9: and you know it's definitely doing well. I mean pleased 317 00:15:34,560 --> 00:15:37,720 Speaker 9: to see the reception. So I think it's such a 318 00:15:37,760 --> 00:15:42,480 Speaker 9: profound technology. I feel the opportunity ahead is bigger than 319 00:15:42,560 --> 00:15:44,200 Speaker 9: the opportunity we had in the text. 320 00:15:44,480 --> 00:15:48,440 Speaker 10: So to double click there, if I may, what specific 321 00:15:48,720 --> 00:15:52,920 Speaker 10: new revenue streams do you see increasing and what revenue 322 00:15:52,960 --> 00:15:54,840 Speaker 10: streams do you see decreasing. 323 00:15:55,960 --> 00:15:59,760 Speaker 9: The growth in cloud like Vertex AI is up forty 324 00:15:59,760 --> 00:16:03,240 Speaker 9: eight in usage on a token basis just in the 325 00:16:03,320 --> 00:16:06,800 Speaker 9: last twelve months, so obviously you know we have billions 326 00:16:06,840 --> 00:16:11,440 Speaker 9: of dollars in providing AI based solutions in AIS and 327 00:16:11,560 --> 00:16:15,840 Speaker 9: infrastructure AI subscriptions. 328 00:16:14,960 --> 00:16:16,920 Speaker 4: So many many new businesses. 329 00:16:17,720 --> 00:16:20,240 Speaker 10: You have over one hundred and eighty thousand employees right now? 330 00:16:20,840 --> 00:16:22,800 Speaker 2: Is it half that In the future. 331 00:16:23,240 --> 00:16:27,520 Speaker 9: I expect we will grow from our current engineering base 332 00:16:27,720 --> 00:16:32,240 Speaker 9: even into next year, right because it allows us to 333 00:16:32,280 --> 00:16:37,760 Speaker 9: do more. I think the opportunity space is also increasing. 334 00:16:38,600 --> 00:16:41,680 Speaker 9: I just view this as making engineers dramatically more productive, 335 00:16:42,920 --> 00:16:45,240 Speaker 9: getting a lot of the mundane aspects out of what 336 00:16:45,280 --> 00:16:49,000 Speaker 9: they do, allowing them to spend on higher value added tasks. 337 00:16:49,600 --> 00:16:51,480 Speaker 9: But that means it's an accelerator. 338 00:16:51,680 --> 00:16:52,800 Speaker 7: People will be able to. 339 00:16:52,760 --> 00:16:56,320 Speaker 9: Do more, which means maybe we'll create new products and 340 00:16:56,360 --> 00:16:58,480 Speaker 9: hence we will need more people, at least in the 341 00:16:58,480 --> 00:16:59,280 Speaker 9: near term. 342 00:16:59,680 --> 00:17:03,480 Speaker 4: To me, it looks like, you know, we will. 343 00:17:03,400 --> 00:17:08,480 Speaker 9: Expand engineering velocity, and that doesn't mean we're constrained in 344 00:17:08,520 --> 00:17:09,520 Speaker 9: what we will do. 345 00:17:09,560 --> 00:17:11,600 Speaker 4: We'll end up doing more as a company as well. 346 00:17:11,680 --> 00:17:15,159 Speaker 10: But in two trials now, judges have said that Google 347 00:17:15,200 --> 00:17:18,600 Speaker 10: is a monopoly in search and partly a monopoly in ads. 348 00:17:19,080 --> 00:17:19,480 Speaker 7: How do you. 349 00:17:19,400 --> 00:17:23,520 Speaker 10: Address the concern that your AI is built on an 350 00:17:23,560 --> 00:17:26,240 Speaker 10: existing domination of search and ads and that this is 351 00:17:26,280 --> 00:17:28,640 Speaker 10: just reinforcing original monopolies. 352 00:17:30,440 --> 00:17:33,200 Speaker 9: First of all, you know, we disagree with the rulings 353 00:17:33,200 --> 00:17:37,600 Speaker 9: and we are in the process of appealing these things. Look, 354 00:17:37,720 --> 00:17:41,320 Speaker 9: if anything, this moment has shown I don't think there's 355 00:17:41,440 --> 00:17:44,440 Speaker 9: anyone here who is using anything they don't want to use. 356 00:17:45,680 --> 00:17:47,840 Speaker 9: You look at the success of chat repd or any 357 00:17:47,880 --> 00:17:48,560 Speaker 9: other product. 358 00:17:49,040 --> 00:17:50,520 Speaker 7: People are literally. 359 00:17:50,119 --> 00:17:53,960 Speaker 9: Have more choice than ever before. The reason people use 360 00:17:54,000 --> 00:17:56,120 Speaker 9: Google is because they want to use it, right, and 361 00:17:56,200 --> 00:18:00,399 Speaker 9: so I think I think we continue to innovate. I 362 00:18:00,440 --> 00:18:04,159 Speaker 9: think choice is good for users, competition is good for 363 00:18:04,200 --> 00:18:07,359 Speaker 9: the world. So that's how I see it. 364 00:18:07,600 --> 00:18:09,680 Speaker 2: You said the remedies proposed are too extreme. 365 00:18:09,720 --> 00:18:14,840 Speaker 10: Would you ever voluntarily break yourself up control your own destiny? 366 00:18:15,600 --> 00:18:19,320 Speaker 9: Compared to what the initial scope of the ruling was, 367 00:18:19,440 --> 00:18:24,680 Speaker 9: some of the proposed solutions are far overreaching. We'll see 368 00:18:24,680 --> 00:18:25,520 Speaker 9: how it plays out. 369 00:18:26,000 --> 00:18:27,880 Speaker 10: I've heard you say a few times that you think 370 00:18:27,920 --> 00:18:31,840 Speaker 10: of AI as an expansionary moment, but so far it 371 00:18:31,880 --> 00:18:35,240 Speaker 10: does seem to be favoring tech giants and well funded 372 00:18:35,240 --> 00:18:38,879 Speaker 10: startups with access to GPUs and data centers and enormous 373 00:18:38,880 --> 00:18:42,840 Speaker 10: amounts of capital, Like, isn't this really concentrating power in 374 00:18:42,920 --> 00:18:47,280 Speaker 10: fewer hands? And is AI just another winner take all game. 375 00:18:48,000 --> 00:18:50,720 Speaker 9: I'm confident there is a company that's going to be 376 00:18:50,760 --> 00:18:54,720 Speaker 9: created with AI, just like when the Internet happened. Many 377 00:18:54,840 --> 00:18:59,280 Speaker 9: years after the Internet happened, googledn't exist. So you know, 378 00:18:59,320 --> 00:19:02,960 Speaker 9: there's no out to me that three years from now 379 00:19:02,960 --> 00:19:04,879 Speaker 9: there'll be a company which will be dominant in this 380 00:19:05,000 --> 00:19:07,680 Speaker 9: AI age, which we don't even know the name of today. Yeah, 381 00:19:07,760 --> 00:19:09,680 Speaker 9: that's the only way things work in the future. 382 00:19:11,480 --> 00:19:14,520 Speaker 3: A confident alphabet CEO sin of pitch. I there along 383 00:19:14,520 --> 00:19:17,199 Speaker 3: with Boomberg's Emily Chang. Right, now, we can talk it 384 00:19:17,320 --> 00:19:19,880 Speaker 3: all through with executive editor Tom Giles, who joins us. 385 00:19:19,960 --> 00:19:22,760 Speaker 3: From all that conversation you were sitting down with Bauz 386 00:19:22,960 --> 00:19:25,359 Speaker 3: from Meta, after that with Sunder, but just going back 387 00:19:25,359 --> 00:19:28,159 Speaker 3: to what Snow was saying around his optimism on jobs. 388 00:19:28,400 --> 00:19:29,280 Speaker 2: Look, today, one of the. 389 00:19:29,280 --> 00:19:31,679 Speaker 3: Most read stories on the NEWBG terminal is Visita Equity 390 00:19:31,680 --> 00:19:35,479 Speaker 3: Partners Robert Smith saying, look at my conference today, sixty 391 00:19:35,520 --> 00:19:37,600 Speaker 3: percent of you are going to need to find new jobs. 392 00:19:37,720 --> 00:19:39,359 Speaker 3: White collar work is going out. 393 00:19:39,440 --> 00:19:40,840 Speaker 4: But keeps going on. And I want to quote, do 394 00:19:41,000 --> 00:19:41,600 Speaker 4: you d just. 395 00:19:41,600 --> 00:19:45,199 Speaker 11: Last week Dario from Ammiday Fromanthropic fifty percent? 396 00:19:45,320 --> 00:19:45,600 Speaker 12: Right. 397 00:19:47,200 --> 00:19:50,960 Speaker 11: Look, the fact is AI is definitely coming for some 398 00:19:51,200 --> 00:19:55,040 Speaker 11: engineering jobs. The number, the percentage of coding that is 399 00:19:55,080 --> 00:19:59,000 Speaker 11: happening from artificial intelligence seems to keep creeping up and 400 00:19:59,080 --> 00:20:01,600 Speaker 11: up and up. Some people would argue that's going to 401 00:20:01,600 --> 00:20:03,640 Speaker 11: put a lot of engineers out of jobs, but as 402 00:20:03,760 --> 00:20:06,760 Speaker 11: Sundar pointed out last night, he thinks what's going to 403 00:20:06,760 --> 00:20:09,000 Speaker 11: happen is it's going to make them more efficient. It's 404 00:20:09,040 --> 00:20:12,760 Speaker 11: going to mean creating more products, bigger companies, bigger businesses, 405 00:20:12,920 --> 00:20:16,920 Speaker 11: and need for more people. Where do you draw that line. 406 00:20:16,960 --> 00:20:20,120 Speaker 11: I mean, we have to encounter as journalists, right when 407 00:20:21,000 --> 00:20:22,760 Speaker 11: are you going to hear the news from the AIS. 408 00:20:23,040 --> 00:20:24,600 Speaker 11: We have to stay a step ahead of and we 409 00:20:24,640 --> 00:20:27,240 Speaker 11: have to stay smarter. And the engineers it's the same thing. 410 00:20:27,560 --> 00:20:30,440 Speaker 11: You have to become more sophisticated in the way you code. 411 00:20:30,480 --> 00:20:31,960 Speaker 7: And that's what Sundar is talking. 412 00:20:32,080 --> 00:20:33,800 Speaker 5: And I guess the news headline was that they will 413 00:20:33,880 --> 00:20:36,199 Speaker 5: keep hiring at least for the next eighteen months or so. 414 00:20:36,240 --> 00:20:38,200 Speaker 11: He fits in twenty twenty six. He didn't want to 415 00:20:38,240 --> 00:20:41,000 Speaker 11: be pinned down into much longer into the future. 416 00:20:41,200 --> 00:20:43,720 Speaker 5: The thing is that Google is so core to the 417 00:20:43,760 --> 00:20:46,359 Speaker 5: new cycle at the moment. That was why it was 418 00:20:46,400 --> 00:20:48,880 Speaker 5: such an important way to kick off Bloomberg Tech summare. 419 00:20:49,320 --> 00:20:52,359 Speaker 5: He made this point that like, look what we're doing 420 00:20:52,359 --> 00:20:55,879 Speaker 5: in our scale, you can't accuse us of being a 421 00:20:55,880 --> 00:20:59,800 Speaker 5: fret to the world existentially because we're also facing all 422 00:20:59,800 --> 00:21:01,560 Speaker 5: of the competition. Some of that competition is going to 423 00:21:01,600 --> 00:21:04,040 Speaker 5: be speaking over the next twelve hours for example. 424 00:21:04,320 --> 00:21:07,800 Speaker 11: Absolutely, you can't say on one hand that we are 425 00:21:08,359 --> 00:21:11,760 Speaker 11: at extinction level threat right at the same time, too big, 426 00:21:12,160 --> 00:21:14,960 Speaker 11: He definitely he came back to the anti trust question 427 00:21:15,119 --> 00:21:19,480 Speaker 11: right the basically the government right now is considering breaking 428 00:21:19,560 --> 00:21:22,760 Speaker 11: up Google. Would he consider breaking up himself? Of course, 429 00:21:23,040 --> 00:21:26,000 Speaker 11: his answer is that is not on the table. He 430 00:21:26,040 --> 00:21:29,040 Speaker 11: thinks that the government is overreaching right now and he 431 00:21:29,119 --> 00:21:31,560 Speaker 11: has to keep sending that message that we are not 432 00:21:31,680 --> 00:21:34,520 Speaker 11: a threat and that there is a lot of choice now. 433 00:21:34,560 --> 00:21:36,600 Speaker 11: I will say that when you come to him and 434 00:21:36,640 --> 00:21:40,080 Speaker 11: say that people are using Ai much more chatbots to 435 00:21:40,160 --> 00:21:44,560 Speaker 11: do their searches, even TikTok to do searches, that actually 436 00:21:44,600 --> 00:21:47,679 Speaker 11: feeds into his argument. That's really beneficial to him to 437 00:21:47,800 --> 00:21:51,040 Speaker 11: know that there is this much competition. The chat GPT 438 00:21:51,280 --> 00:21:53,439 Speaker 11: is out there and people are starting to use it 439 00:21:53,480 --> 00:21:56,760 Speaker 11: for all the things that Google is you usually do 440 00:21:56,960 --> 00:21:58,240 Speaker 11: with Google and perplexity. 441 00:21:58,320 --> 00:22:02,040 Speaker 3: Who's speaking to Shuena little bit later today Shoween KAfari. 442 00:22:02,080 --> 00:22:04,320 Speaker 3: We've also got Showen speaking with the government as well. 443 00:22:04,520 --> 00:22:07,840 Speaker 3: Michael Kratzios, what are some of the conversations going to 444 00:22:08,000 --> 00:22:11,800 Speaker 3: really be pushing forward? Do you think because yesterday you 445 00:22:11,960 --> 00:22:15,240 Speaker 3: got bars Sametta to push forward on this patriotism focus 446 00:22:15,280 --> 00:22:17,560 Speaker 3: on this alignment of Silicon Valley with defense. 447 00:22:17,600 --> 00:22:18,880 Speaker 2: What else came out of that conversation? 448 00:22:19,000 --> 00:22:19,400 Speaker 7: Right? Yeah? 449 00:22:19,480 --> 00:22:24,440 Speaker 11: I mean he pointed out that for many years Silicon 450 00:22:24,520 --> 00:22:26,760 Speaker 11: Valley has said no to working with the Defense Department. 451 00:22:26,880 --> 00:22:30,960 Speaker 11: The pendulum is swinging dramatically. Patriotism silent majority. 452 00:22:31,000 --> 00:22:32,760 Speaker 7: We heard that before in US history. 453 00:22:32,800 --> 00:22:35,119 Speaker 11: You'll recall I'm not sure I've seen the polling that 454 00:22:35,240 --> 00:22:38,000 Speaker 11: shows that that demonstrates that, but I get the sentiment 455 00:22:38,080 --> 00:22:41,560 Speaker 11: behind it. As you talk just now with Trey, I'll 456 00:22:41,560 --> 00:22:43,640 Speaker 11: be talking with him a little bit later. I'm looking 457 00:22:43,640 --> 00:22:45,560 Speaker 11: forward to here on you got to go to sea. 458 00:22:45,760 --> 00:22:46,320 Speaker 7: It looks great. 459 00:22:46,640 --> 00:22:49,800 Speaker 11: I am looking forward to hearing from Luri Mayor Luri 460 00:22:50,080 --> 00:22:53,760 Speaker 11: to hear about the comeback of San Francisco, Is it real? 461 00:22:54,000 --> 00:22:54,720 Speaker 7: Is it lasting? 462 00:22:54,960 --> 00:22:58,439 Speaker 11: And what's ahead for this important city to Silicon Valley. 463 00:22:58,520 --> 00:23:02,159 Speaker 5: We're just getting kiked Off's head Technology Executive Editors Senior 464 00:23:02,280 --> 00:23:03,720 Speaker 5: executive editor, Tom Giles. 465 00:23:03,840 --> 00:23:05,080 Speaker 4: Let's get out to Washington, d C. 466 00:23:05,240 --> 00:23:08,600 Speaker 5: President Donald Trump and Chinese leaders using paying agreeing to 467 00:23:08,680 --> 00:23:11,720 Speaker 5: further trade talks during a phone call today, gloumost Kaylie 468 00:23:11,760 --> 00:23:13,960 Speaker 5: Lyons has all the details and at the center of 469 00:23:13,960 --> 00:23:15,040 Speaker 5: it Rare Earths. 470 00:23:16,400 --> 00:23:17,080 Speaker 2: Yeah, that's right. 471 00:23:17,119 --> 00:23:19,080 Speaker 13: The President said that after this phone call was she 472 00:23:19,160 --> 00:23:21,080 Speaker 13: which lasted about an hour and a half, there should 473 00:23:21,119 --> 00:23:23,600 Speaker 13: be no more questions around the complexity of the rare 474 00:23:23,640 --> 00:23:26,119 Speaker 13: earth's issue. That does still leave us though with some questions, 475 00:23:26,200 --> 00:23:29,159 Speaker 13: as the President did not specify exactly what was agreed 476 00:23:29,160 --> 00:23:31,960 Speaker 13: to on rare earth if China has formally said that 477 00:23:32,040 --> 00:23:35,480 Speaker 13: it will be lifting export restrictions or granting licenses for 478 00:23:35,640 --> 00:23:38,320 Speaker 13: the export of those rare earths to American companies, so 479 00:23:38,359 --> 00:23:40,720 Speaker 13: we're still left with some questions here. China's readout of 480 00:23:40,720 --> 00:23:42,840 Speaker 13: this call has been a bit different. China, in its 481 00:23:42,840 --> 00:23:45,440 Speaker 13: statement also said that President Trump has said that Chinese 482 00:23:45,480 --> 00:23:47,920 Speaker 13: students are welcome in the US, despite the State Department's 483 00:23:47,920 --> 00:23:51,800 Speaker 13: efforts to be revoking some of those visas of Chinese students. 484 00:23:51,800 --> 00:23:54,280 Speaker 13: But the big picture here is that President Trump says 485 00:23:54,320 --> 00:23:55,919 Speaker 13: that this has brought the US and China to a 486 00:23:55,920 --> 00:23:58,159 Speaker 13: better place on trade and that they are going to 487 00:23:58,160 --> 00:24:01,119 Speaker 13: continue conversations which will be a bit broader, remembering the 488 00:24:01,160 --> 00:24:04,399 Speaker 13: first conversations in Geneva, or just the Treasury Secretary Scott 489 00:24:04,440 --> 00:24:07,720 Speaker 13: Vessant with his counterpartner Howard Lutnick, The Commerce Secretary, as 490 00:24:07,720 --> 00:24:10,359 Speaker 13: well as the US Trade Representative Jamison Greer, will be 491 00:24:10,400 --> 00:24:12,959 Speaker 13: involved in the next top at a location that has 492 00:24:13,040 --> 00:24:13,760 Speaker 13: yet to be announced. 493 00:24:13,760 --> 00:24:14,320 Speaker 2: As well as the. 494 00:24:14,280 --> 00:24:19,080 Speaker 3: Time China top of mind Kayley in thirty seconds. Elil 495 00:24:19,160 --> 00:24:21,120 Speaker 3: Musk also top of mind for this big bill. 496 00:24:22,400 --> 00:24:23,119 Speaker 2: Oh absolutely. 497 00:24:23,200 --> 00:24:25,200 Speaker 13: The Speaker of the House was actually planning on talking 498 00:24:25,200 --> 00:24:27,560 Speaker 13: to Elon Musk today as he says he needs he 499 00:24:27,600 --> 00:24:30,680 Speaker 13: wants to see Americans kill this bill, possibly in part 500 00:24:30,720 --> 00:24:32,879 Speaker 13: because it will roll back the seventy five hundred dollars 501 00:24:32,880 --> 00:24:34,400 Speaker 13: EV credit by the end of this year. 502 00:24:34,440 --> 00:24:35,880 Speaker 2: In Tesla, of course, benefits from Matt. 503 00:24:35,920 --> 00:24:49,919 Speaker 3: Caroline Kaylee lines, thank you, welcome back to a very 504 00:24:49,920 --> 00:24:52,240 Speaker 3: special edition of Blue Veg Technology. We are live on 505 00:24:52,320 --> 00:24:54,440 Speaker 3: the Blue Veg Tech Summit right here in San Francisco, 506 00:24:54,520 --> 00:24:55,160 Speaker 3: and Caroline Hi. 507 00:24:55,200 --> 00:24:57,000 Speaker 4: And I'm Ed Ludlow. Meta CTO. 508 00:24:57,080 --> 00:25:01,080 Speaker 5: Andrew Bosworth says that quote the tie have turned in 509 00:25:01,200 --> 00:25:04,280 Speaker 5: Silicon Valley, making it more palatable for the tech industry 510 00:25:04,320 --> 00:25:07,399 Speaker 5: to support the US military's efforts. He sat down to 511 00:25:07,480 --> 00:25:11,520 Speaker 5: discuss that last night with Bloomberg Senior Executive aed Tom Giles. 512 00:25:12,480 --> 00:25:15,880 Speaker 8: I have family members in the Armed Services. I want 513 00:25:15,880 --> 00:25:18,520 Speaker 8: them to have the best equipment available. And I've always 514 00:25:18,560 --> 00:25:21,280 Speaker 8: been a very patriotic American and believe in the importance 515 00:25:21,320 --> 00:25:23,960 Speaker 8: of our role not just inside the nation but globally, 516 00:25:24,960 --> 00:25:28,680 Speaker 8: so there's a much stronger patriotic underpinning than I think 517 00:25:28,680 --> 00:25:30,280 Speaker 8: people give Silicon. 518 00:25:29,920 --> 00:25:30,560 Speaker 7: Valley credit for. 519 00:25:30,880 --> 00:25:34,360 Speaker 8: But taking a step deeper, this is actually a return 520 00:25:34,600 --> 00:25:38,119 Speaker 8: to grace for the Valley, potentially not just from Meta 521 00:25:38,160 --> 00:25:41,480 Speaker 8: but from Google and other companies. The Valley was founded 522 00:25:41,720 --> 00:25:45,600 Speaker 8: on a three way investment between the military, academics, and 523 00:25:45,640 --> 00:25:48,520 Speaker 8: private industry. That was the founding of it. There would 524 00:25:48,600 --> 00:25:51,159 Speaker 8: be no technology if we weren't all tasked with the 525 00:25:51,200 --> 00:25:56,119 Speaker 8: problem of computing naval ballistic trajectories during the first two 526 00:25:56,160 --> 00:25:58,679 Speaker 8: World Wars. Like that is the heart and soul of 527 00:25:58,720 --> 00:26:01,960 Speaker 8: the investment that led to what we are today, and 528 00:26:02,240 --> 00:26:04,520 Speaker 8: that really got severed for a while there. And some 529 00:26:04,600 --> 00:26:06,720 Speaker 8: of that's because of the procurement laws that change in 530 00:26:06,720 --> 00:26:08,640 Speaker 8: the sixties and seventies. Some of that's the Last Supper 531 00:26:08,680 --> 00:26:10,800 Speaker 8: that happened in ninteen eighty five. We ended up just 532 00:26:10,840 --> 00:26:12,600 Speaker 8: kind of going our separate ways, and I think we're 533 00:26:12,640 --> 00:26:15,160 Speaker 8: worse off for it. I think we're spending more money 534 00:26:15,200 --> 00:26:19,160 Speaker 8: for worse technology in the public sector, and I think 535 00:26:19,200 --> 00:26:22,000 Speaker 8: the private sector is not attacking some of the most 536 00:26:22,080 --> 00:26:25,959 Speaker 8: valuable challenges it's for us to solve. And I think 537 00:26:26,000 --> 00:26:26,720 Speaker 8: it's a mismatch. 538 00:26:26,800 --> 00:26:31,640 Speaker 11: You mentioned smartphones earlier. Do you see spectacles headsets as 539 00:26:31,680 --> 00:26:34,600 Speaker 11: a replacement for or a compliment to smartphones. 540 00:26:34,680 --> 00:26:39,800 Speaker 8: We've always talked about the mix reality devices VR devices 541 00:26:39,840 --> 00:26:43,080 Speaker 8: as being kind of a laptop style market. It's like, 542 00:26:43,920 --> 00:26:46,159 Speaker 8: I use this joke a lot, but you know if 543 00:26:46,200 --> 00:26:48,600 Speaker 8: you ever on your phone and you're answering email and 544 00:26:48,640 --> 00:26:51,359 Speaker 8: you're like, no, this is not a phone email. This 545 00:26:51,400 --> 00:26:53,600 Speaker 8: is a laptop email, and you like put your phone down, 546 00:26:53,640 --> 00:26:55,800 Speaker 8: you like upgrade your power, and like, yes, now I 547 00:26:55,840 --> 00:26:58,000 Speaker 8: have all the windows and I will have all my research, 548 00:26:58,040 --> 00:27:00,640 Speaker 8: and it's like this a laptop email. There's like an 549 00:27:00,640 --> 00:27:03,119 Speaker 8: increase in power that comes there that we all recognize 550 00:27:03,160 --> 00:27:05,600 Speaker 8: and they just like know instinctively when you're in what's done. 551 00:27:06,200 --> 00:27:08,200 Speaker 8: The headset should feel like that, it should feel like 552 00:27:08,200 --> 00:27:10,359 Speaker 8: a crazy upgrade, like this is not a laptop email, 553 00:27:10,840 --> 00:27:13,080 Speaker 8: this is a headset email. Just now it's like the 554 00:27:13,080 --> 00:27:15,520 Speaker 8: world is your oyster and you're just moving things through 555 00:27:15,560 --> 00:27:18,280 Speaker 8: the universe. So I think there's a there's a story there. 556 00:27:19,080 --> 00:27:23,120 Speaker 8: Certainly in the limit, I think ar glasses replace smartphones. 557 00:27:23,840 --> 00:27:26,679 Speaker 8: That's a ways off. Smartphones are incredible, and it's not 558 00:27:26,760 --> 00:27:29,080 Speaker 8: just that their great devices, and they're convenient, we're used 559 00:27:29,080 --> 00:27:32,600 Speaker 8: to them. They also have like an incredibly entangled ecosystem 560 00:27:32,760 --> 00:27:35,240 Speaker 8: of software connected to the rest of the world around us. 561 00:27:35,480 --> 00:27:37,680 Speaker 7: That is going to be a very slow to move 562 00:27:37,720 --> 00:27:38,280 Speaker 7: over and a lot of. 563 00:27:38,280 --> 00:27:39,920 Speaker 8: People who aren't going to want to move over because 564 00:27:39,920 --> 00:27:43,280 Speaker 8: it's going to disenfranchise them or disintermediate them. So I 565 00:27:43,320 --> 00:27:46,480 Speaker 8: think I think that'll take a longer journey. The good 566 00:27:46,480 --> 00:27:49,960 Speaker 8: news is they work really well in concert. The platforms 567 00:27:50,000 --> 00:27:55,679 Speaker 8: don't make it easy. Cinder does better than tim But 568 00:27:56,240 --> 00:27:58,520 Speaker 8: the truth is with AI, you've got this obvious use 569 00:27:58,560 --> 00:28:00,560 Speaker 8: case where it just makes sense to have these wearable 570 00:28:00,560 --> 00:28:03,199 Speaker 8: devices even though you also still have a phone. So 571 00:28:03,240 --> 00:28:05,120 Speaker 8: I don't We're not in a place anymore where it's 572 00:28:05,160 --> 00:28:06,960 Speaker 8: like one or the other and you have to pick today. 573 00:28:07,520 --> 00:28:09,280 Speaker 8: They will coexist for a long time. 574 00:28:11,119 --> 00:28:15,200 Speaker 3: Meta CTEO Andrew Bosworth, along with Bloomberg's Tom Giles. Look, 575 00:28:15,280 --> 00:28:18,680 Speaker 3: it's not all about ar blglasses. When you think about 576 00:28:18,680 --> 00:28:21,040 Speaker 3: the future, you also think robotics. For the perfect person 577 00:28:21,080 --> 00:28:24,480 Speaker 3: to discussing with Haggy Johnson, CEO of Agility Robotics, No, 578 00:28:24,920 --> 00:28:29,600 Speaker 3: we are thinking about the next step of humanoids working 579 00:28:29,680 --> 00:28:32,640 Speaker 3: with humans you're already after a year in the job, 580 00:28:32,720 --> 00:28:36,280 Speaker 3: a year with your human EID robots in GXO logistics, 581 00:28:36,400 --> 00:28:38,000 Speaker 3: What are you learning about how difficult it is for 582 00:28:38,080 --> 00:28:39,160 Speaker 3: us to work alongside them. 583 00:28:39,880 --> 00:28:45,000 Speaker 12: Well, the biggest factor to scaling humanoids is safety. So 584 00:28:45,200 --> 00:28:48,520 Speaker 12: still today humanoids need to work inside of a work cell, 585 00:28:48,880 --> 00:28:51,760 Speaker 12: which is a small gate that keeps them out of 586 00:28:51,760 --> 00:28:53,080 Speaker 12: the proximity of humans. 587 00:28:53,400 --> 00:28:55,240 Speaker 7: To really scale, you need to come. 588 00:28:55,120 --> 00:28:57,080 Speaker 12: Outside of the work cell to be able to walk 589 00:28:57,120 --> 00:28:59,719 Speaker 12: down to the loading dock or across a factory floor. 590 00:29:00,240 --> 00:29:02,480 Speaker 12: And we're working on that right now. Our next gen, 591 00:29:02,560 --> 00:29:05,120 Speaker 12: which we will show off before the end of this year, 592 00:29:05,160 --> 00:29:08,280 Speaker 12: will be what's called cooperatively safe. We can be within 593 00:29:08,360 --> 00:29:10,560 Speaker 12: proximity of humans in a safe manner. 594 00:29:10,800 --> 00:29:13,960 Speaker 2: How much is this software dependent rather than just hardware dependent. 595 00:29:14,360 --> 00:29:15,120 Speaker 2: It's a bit of both. 596 00:29:15,240 --> 00:29:16,920 Speaker 12: You have to have a lot of sensors, a lot 597 00:29:16,920 --> 00:29:21,440 Speaker 12: of cameras. Interestingly, unlike humans, robots can see behind them. 598 00:29:21,480 --> 00:29:24,920 Speaker 12: They can see three sixty They're much like electronic vehicles 599 00:29:24,960 --> 00:29:27,080 Speaker 12: in that fashion. But you do need a layer of 600 00:29:27,120 --> 00:29:30,920 Speaker 12: software on top to ensure that nothing ever happens that 601 00:29:31,000 --> 00:29:32,600 Speaker 12: would put a human in harms. 602 00:29:32,640 --> 00:29:35,880 Speaker 5: Way, have you what range of tasks can your robots 603 00:29:35,960 --> 00:29:41,120 Speaker 5: currently perform I guess autonomously literally movements pressures? 604 00:29:42,200 --> 00:29:46,520 Speaker 12: Yeah, so right now, that entry point is moving materials, 605 00:29:46,560 --> 00:29:49,480 Speaker 12: so moving plastic bins and boxes and things like that 606 00:29:49,640 --> 00:29:52,600 Speaker 12: in warehouses. But that is only the entry point. It 607 00:29:52,760 --> 00:29:55,680 Speaker 12: is a multipurpose robot. It can do a number of tasks. 608 00:29:55,920 --> 00:29:59,640 Speaker 12: But this entry point can teach us new skills as 609 00:29:59,680 --> 00:30:02,040 Speaker 12: we learn to do more things in those facilities and 610 00:30:02,080 --> 00:30:04,320 Speaker 12: eventually come outside of those facilities and. 611 00:30:04,280 --> 00:30:05,080 Speaker 2: Into our homes. 612 00:30:05,360 --> 00:30:07,320 Speaker 4: What is agility's core competence? 613 00:30:07,680 --> 00:30:11,360 Speaker 5: You make hardware or are you better at the software components? 614 00:30:11,680 --> 00:30:13,520 Speaker 12: Well, I would say a little bit of balls, but. 615 00:30:13,360 --> 00:30:14,320 Speaker 4: You said that already though. 616 00:30:14,640 --> 00:30:16,920 Speaker 5: For Yeah, I get told every single day at the 617 00:30:16,920 --> 00:30:19,680 Speaker 5: moment when you speak to a robotics company, ask them 618 00:30:19,720 --> 00:30:21,800 Speaker 5: about how good their software team is, how good the 619 00:30:21,840 --> 00:30:25,480 Speaker 5: engineers are, because it has been the limiting factor to progress. 620 00:30:25,960 --> 00:30:29,520 Speaker 12: Yeah, so AI has really supercharged that. We used to 621 00:30:29,680 --> 00:30:33,720 Speaker 12: have to code all the movements of the robot, and 622 00:30:33,760 --> 00:30:37,000 Speaker 12: now with AI we can teach it new skills much 623 00:30:37,000 --> 00:30:41,760 Speaker 12: more quickly. We're actually changing exchanging engineering hours for compute hours, 624 00:30:42,080 --> 00:30:44,640 Speaker 12: and it really shrinks the time and the cost of 625 00:30:44,680 --> 00:30:46,280 Speaker 12: teaching the robot new skills. 626 00:30:46,560 --> 00:30:47,720 Speaker 2: What about supply chain? 627 00:30:48,040 --> 00:30:50,680 Speaker 3: We've got a lot of news about China US relationship today. 628 00:30:50,840 --> 00:30:51,880 Speaker 2: How is it looking for you? 629 00:30:51,960 --> 00:30:54,440 Speaker 12: Well, a couple of things we manufacture right here in 630 00:30:54,440 --> 00:30:57,680 Speaker 12: the United States. Only about one percent of our parts 631 00:30:57,880 --> 00:31:02,320 Speaker 12: come from China, so we're relativetively immune to any of 632 00:31:02,320 --> 00:31:05,120 Speaker 12: the issues that others may be having. The robot was 633 00:31:05,200 --> 00:31:07,640 Speaker 12: just initially built that way and it's been a real 634 00:31:07,680 --> 00:31:08,640 Speaker 12: advantage for us. 635 00:31:08,680 --> 00:31:09,680 Speaker 2: So can you pit us? 636 00:31:09,720 --> 00:31:14,120 Speaker 3: Therefore, we love to put generative AI prowess of China 637 00:31:14,200 --> 00:31:15,360 Speaker 3: versus generative. 638 00:31:14,920 --> 00:31:17,920 Speaker 2: Aipress in the US. What about robotics, he's winning? 639 00:31:18,600 --> 00:31:20,640 Speaker 12: I would say the US is winning. A lot of 640 00:31:20,680 --> 00:31:23,760 Speaker 12: what you see coming out of China today are flashy 641 00:31:23,840 --> 00:31:28,440 Speaker 12: videos demos, not actually on a factory floor like we 642 00:31:28,560 --> 00:31:33,920 Speaker 12: are working eight hour shifts lifting heavy items. That is 643 00:31:34,080 --> 00:31:36,480 Speaker 12: when that's the true test of what a rollback in. 644 00:31:36,560 --> 00:31:39,280 Speaker 5: That's the thing, right, I think the Bloomberg text audience 645 00:31:39,400 --> 00:31:42,680 Speaker 5: really just appreciate understanding the basics. So with the gxodeal, 646 00:31:43,280 --> 00:31:46,800 Speaker 5: in one calendar year, you've moved three hundred thousand items. 647 00:31:47,000 --> 00:31:49,960 Speaker 5: But how many robots is that? How many actions can 648 00:31:49,960 --> 00:31:52,040 Speaker 5: a robot doing a shift? I can't believe you use 649 00:31:52,040 --> 00:31:56,280 Speaker 5: the word shift performer hour stress. Just how does it 650 00:31:56,320 --> 00:31:58,160 Speaker 5: work in practice and give us a sense of scale. 651 00:31:58,280 --> 00:32:00,600 Speaker 12: Sure, so it is an eight hour shif it's just 652 00:32:00,640 --> 00:32:06,080 Speaker 12: a handful of robots that are producing that type of number. Basically, 653 00:32:06,280 --> 00:32:10,080 Speaker 12: the robots can walk in and perform a task. But 654 00:32:10,160 --> 00:32:14,880 Speaker 12: what's interesting about humanoids is that they can perform several tasks. 655 00:32:15,360 --> 00:32:17,560 Speaker 12: So they can do one thing in the morning, something 656 00:32:17,560 --> 00:32:20,440 Speaker 12: else at noon, something else in the evening. Where robots, 657 00:32:21,080 --> 00:32:25,000 Speaker 12: the traditional robots say, a single arm is very specific. 658 00:32:25,040 --> 00:32:26,760 Speaker 12: They do one thing over and over, and they do 659 00:32:26,800 --> 00:32:29,760 Speaker 12: it very well. Humanoids can actually change what they do, 660 00:32:29,840 --> 00:32:32,640 Speaker 12: and now with AI, we can give them commands and 661 00:32:32,680 --> 00:32:34,280 Speaker 12: they can change on a moment's notice. 662 00:32:34,720 --> 00:32:37,760 Speaker 3: The history of agency is so interesting. It came out 663 00:32:37,760 --> 00:32:41,000 Speaker 3: of Oregon State University with thinking at the moment about 664 00:32:41,200 --> 00:32:44,240 Speaker 3: state funding, about funding to science and R and D, 665 00:32:44,640 --> 00:32:46,760 Speaker 3: of talent being able to come in from immigration. 666 00:32:46,880 --> 00:32:48,160 Speaker 2: Are these things simple mind for you? 667 00:32:48,640 --> 00:32:51,800 Speaker 12: Well, we did have early grants from the US and 668 00:32:51,840 --> 00:32:54,240 Speaker 12: it really helped the company get going. So I am 669 00:32:54,240 --> 00:32:57,280 Speaker 12: a huge fan of basic research for US companies. We 670 00:32:57,440 --> 00:33:01,880 Speaker 12: absolutely have to continue to invest both in research and 671 00:33:02,000 --> 00:33:06,400 Speaker 12: in the talent. So we need proper immigration in place 672 00:33:06,520 --> 00:33:08,240 Speaker 12: in order for us to be able to access this 673 00:33:08,360 --> 00:33:09,040 Speaker 12: kind of talent. 674 00:33:10,040 --> 00:33:22,320 Speaker 5: Peggy Johnson, the CEO of Agility Robotic, Welcome back to 675 00:33:22,360 --> 00:33:24,640 Speaker 5: a special edition of Bloomberg Technology. We live from the 676 00:33:24,640 --> 00:33:28,400 Speaker 5: Bloomberg Tech Summer in San Francisco, where AI is top 677 00:33:28,400 --> 00:33:31,320 Speaker 5: of mind. AI's impact on the workforce is already being felt, 678 00:33:31,360 --> 00:33:33,200 Speaker 5: and that's especially true for engineers. 679 00:33:33,480 --> 00:33:34,840 Speaker 4: A partner, Channa Bragado, is. 680 00:33:34,840 --> 00:33:38,160 Speaker 5: The chief Product Officer of Experiences and Devices in Microsoft, 681 00:33:38,440 --> 00:33:40,400 Speaker 5: which is at the forefront of some of these changes. 682 00:33:40,440 --> 00:33:43,960 Speaker 5: He joined us here at Tech summert SF. So, as 683 00:33:44,000 --> 00:33:47,480 Speaker 5: you know, about six months ago, I just did thirty 684 00:33:47,560 --> 00:33:51,840 Speaker 5: days straight of using co pilot on a Windows based laptop. 685 00:33:52,120 --> 00:33:54,640 Speaker 5: I wanted to commit to working out how on. 686 00:33:54,560 --> 00:33:56,240 Speaker 4: Earth you use these tools in the real world. 687 00:33:56,840 --> 00:34:00,000 Speaker 5: Really interesting that I felt within the confines of the laptop, 688 00:34:00,040 --> 00:34:02,920 Speaker 5: I couldn't get out of the laptop onto my smartphone. 689 00:34:03,160 --> 00:34:05,600 Speaker 5: What are you finding six months on and how knowledge 690 00:34:05,600 --> 00:34:07,240 Speaker 5: workers use your use your tech. 691 00:34:07,600 --> 00:34:09,600 Speaker 14: First of all, thank you for having me, and also 692 00:34:09,760 --> 00:34:12,520 Speaker 14: for thank you for like nailing the pronunciation of my name, 693 00:34:13,920 --> 00:34:15,520 Speaker 14: you know, like taking a step back. I think we 694 00:34:15,560 --> 00:34:18,399 Speaker 14: are in this like super early phase of like the 695 00:34:18,440 --> 00:34:22,520 Speaker 14: AI shift. This is like the nineteen ninety five's equivalent 696 00:34:22,560 --> 00:34:25,400 Speaker 14: of the Internet shift. To me, where I see it 697 00:34:25,760 --> 00:34:27,719 Speaker 14: and to me, I think what we are starting to 698 00:34:27,760 --> 00:34:32,120 Speaker 14: see is for knowledge work very clearly, efficiency gains. Right 699 00:34:32,200 --> 00:34:36,040 Speaker 14: for organizations, you're saving millions of dollars of like money 700 00:34:36,080 --> 00:34:40,600 Speaker 14: and time automating workflows, I mean, summarizing documents, meeting notes 701 00:34:40,600 --> 00:34:40,879 Speaker 14: a se. 702 00:34:41,200 --> 00:34:44,240 Speaker 5: Is co pilot just narrowly a tool for knowledge workers 703 00:34:44,320 --> 00:34:47,000 Speaker 5: or are you finally consumers are using an equal measure? 704 00:34:47,239 --> 00:34:50,839 Speaker 14: It's it's it's broad because productivity is not bound by 705 00:34:50,880 --> 00:34:55,120 Speaker 14: the work organizational boundary, right. But I do think that 706 00:34:55,200 --> 00:34:57,160 Speaker 14: actually one of the things that we are seeing where 707 00:34:57,160 --> 00:35:01,400 Speaker 14: the traction is is in efficiency for ourganizations, right, efficiency 708 00:35:01,440 --> 00:35:04,320 Speaker 14: for at the individual level. They imagine having a digital 709 00:35:04,360 --> 00:35:07,280 Speaker 14: assistant at work for every employee, right, which you couldn't 710 00:35:07,320 --> 00:35:10,200 Speaker 14: afford to have before. The thing that we are seeing 711 00:35:10,440 --> 00:35:12,879 Speaker 14: and I'm seeing it with customers talking about it too, 712 00:35:13,000 --> 00:35:17,000 Speaker 14: is that shift between from efficiency to more of effectiveness. 713 00:35:17,280 --> 00:35:19,680 Speaker 2: Meaning look, I mean it's fine, it is great. 714 00:35:19,840 --> 00:35:23,200 Speaker 14: For example, I can't imagine doing a meeting without the 715 00:35:23,239 --> 00:35:26,360 Speaker 14: facilitation by copilot, right. It takes the notes it carries 716 00:35:26,400 --> 00:35:29,560 Speaker 14: action items. It tells if you're going off the rails 717 00:35:29,600 --> 00:35:32,960 Speaker 14: in a discussion, because in meetings that happens all the time. 718 00:35:33,600 --> 00:35:36,920 Speaker 14: But what I am seeing is that for effectiveness, the 719 00:35:37,000 --> 00:35:40,320 Speaker 14: key unlock has been these model advances in deep reasoning, 720 00:35:40,760 --> 00:35:44,400 Speaker 14: meaning it's not just about like faster answers. We launched 721 00:35:44,400 --> 00:35:47,480 Speaker 14: an agent in co pilot called Researcher. Think about it 722 00:35:47,480 --> 00:35:51,320 Speaker 14: as a super smart, intelligent chief of staff in your pocket. 723 00:35:51,600 --> 00:35:53,680 Speaker 14: And so, for example, I had a customer meeting last 724 00:35:53,719 --> 00:35:56,160 Speaker 14: week and this thing went around and kind of like 725 00:35:56,200 --> 00:35:59,680 Speaker 14: scoured the whole web information but also the email from 726 00:35:59,719 --> 00:36:02,239 Speaker 14: three years ago from the CIO of the customer to 727 00:36:02,560 --> 00:36:04,680 Speaker 14: kind of like pointing an issue, said make sure you 728 00:36:04,760 --> 00:36:07,680 Speaker 14: bring that up. I mean, that's the effectiveness. That's like 729 00:36:07,719 --> 00:36:09,440 Speaker 14: superpowers that you didn't have before. 730 00:36:10,160 --> 00:36:13,400 Speaker 3: People are getting s superpowers from other places too, and 731 00:36:13,480 --> 00:36:17,200 Speaker 3: chatgypt enterprise. The interesting nature of your relationship with open 732 00:36:17,239 --> 00:36:18,920 Speaker 3: ai but also them as a competitor. 733 00:36:19,160 --> 00:36:21,800 Speaker 2: Can your customers afford both? Are they affording both? 734 00:36:22,640 --> 00:36:24,719 Speaker 14: I think with open Air, First of all, we have 735 00:36:24,760 --> 00:36:26,480 Speaker 14: a great long term relationship. 736 00:36:26,520 --> 00:36:28,000 Speaker 2: It's a win win relationship. 737 00:36:28,600 --> 00:36:31,920 Speaker 14: We build products on innovative models from open AI. For 738 00:36:32,000 --> 00:36:35,880 Speaker 14: the frontier models. Our customers build agents and you know, 739 00:36:35,920 --> 00:36:38,640 Speaker 14: workflows on and AI apps on top of our Azure 740 00:36:38,680 --> 00:36:40,120 Speaker 14: Open AI service platform. 741 00:36:40,840 --> 00:36:42,040 Speaker 2: The word I do see. 742 00:36:41,880 --> 00:36:45,680 Speaker 14: At Microsoft is for us at least, what AI and 743 00:36:45,719 --> 00:36:49,359 Speaker 14: copilot is about number one, bringing the advanced intelligence right, 744 00:36:49,560 --> 00:36:53,319 Speaker 14: that's table stakes. But number two is making sure that 745 00:36:53,360 --> 00:36:56,400 Speaker 14: it works where you work, right, you're I mean teams 746 00:36:56,440 --> 00:36:57,000 Speaker 14: all day or. 747 00:36:57,640 --> 00:37:00,000 Speaker 5: Just where you work. So right now I'm using this thing. 748 00:37:00,120 --> 00:37:03,080 Speaker 5: This is a smartphone. Various brands are available in the 749 00:37:03,160 --> 00:37:06,640 Speaker 5: future because this is part of your portfolio. Which device 750 00:37:06,760 --> 00:37:11,239 Speaker 5: does Microsoft bet that knowledge workers are actually using for aiols? 751 00:37:11,400 --> 00:37:13,719 Speaker 14: I mean, there's clearly a lot of knowledge work that 752 00:37:13,760 --> 00:37:17,160 Speaker 14: happens on laptops and desktops. But then I think we 753 00:37:17,239 --> 00:37:19,520 Speaker 14: have a mobile app, for example, for them M through 754 00:37:19,560 --> 00:37:22,200 Speaker 14: sixty five copilot, the one that you do use at work. 755 00:37:22,520 --> 00:37:24,239 Speaker 2: But I think the other thing I do want to. 756 00:37:24,160 --> 00:37:26,919 Speaker 14: Come back to is there is a You can't build 757 00:37:26,960 --> 00:37:29,160 Speaker 14: all of these on Jenga blocks, right, you have to 758 00:37:29,200 --> 00:37:33,520 Speaker 14: build this on security, safety, compliance, and governance. And that's 759 00:37:33,520 --> 00:37:36,439 Speaker 14: the thing I hear all the time from customers. In fact, 760 00:37:36,440 --> 00:37:39,480 Speaker 14: the phrase that I use internally is we need to 761 00:37:39,480 --> 00:37:42,799 Speaker 14: innovate at the speed of trust right, which means it's 762 00:37:42,840 --> 00:37:45,680 Speaker 14: an end right. And at Microsoft that's I think of 763 00:37:45,760 --> 00:37:48,799 Speaker 14: as a differentiator, which is how do you innovate, but 764 00:37:48,880 --> 00:37:50,520 Speaker 14: how do you do it at the speed of trust 765 00:37:50,600 --> 00:37:51,320 Speaker 14: with governance. 766 00:37:51,520 --> 00:37:54,399 Speaker 3: I go back to that and though are people having 767 00:37:54,440 --> 00:37:58,359 Speaker 3: copilot and other enterprise gendet FAI offerings right now? 768 00:37:58,640 --> 00:38:01,400 Speaker 14: It's a mix at and I would say it's actually 769 00:38:01,480 --> 00:38:04,960 Speaker 14: a healthy thing right now because again, like think about 770 00:38:05,640 --> 00:38:09,280 Speaker 14: I think of AI tools for employees as a contact sport. 771 00:38:09,360 --> 00:38:11,319 Speaker 14: In fact, I think one of the like you have 772 00:38:11,360 --> 00:38:13,480 Speaker 14: to get in and use this stuff to actually get 773 00:38:13,520 --> 00:38:18,480 Speaker 14: the about challenge is amazing because and in fact, we 774 00:38:18,520 --> 00:38:21,120 Speaker 14: did a study called the work Trend Index, and one 775 00:38:21,120 --> 00:38:23,960 Speaker 14: of the things we found is these class of companies 776 00:38:24,000 --> 00:38:28,319 Speaker 14: we call them frontier firms, and the big distinction there 777 00:38:28,400 --> 00:38:31,279 Speaker 14: is that they're not they're not thinking of AI as 778 00:38:31,320 --> 00:38:33,840 Speaker 14: a snack. It's a main meal right for their employees. 779 00:38:33,880 --> 00:38:36,560 Speaker 14: It's an org wide adoption. It's not this thing off 780 00:38:36,600 --> 00:38:40,200 Speaker 14: to the side. They're using multiple tools, they're experimenting with things, 781 00:38:40,520 --> 00:38:41,839 Speaker 14: but at the end of the end of the day, 782 00:38:41,840 --> 00:38:44,319 Speaker 14: they are also looking at what's the roy where are 783 00:38:44,320 --> 00:38:46,960 Speaker 14: they getting the governance and the security and as well 784 00:38:47,000 --> 00:38:49,879 Speaker 14: as kind of the latest access to intelligence. And that's 785 00:38:49,920 --> 00:38:52,279 Speaker 14: how I think about like where Microsoft. 786 00:38:51,760 --> 00:38:55,040 Speaker 2: Is playing, Wow, it's a great contact sport. 787 00:38:55,120 --> 00:38:58,400 Speaker 3: I can't play rugby anymore based on contact sport. Different 788 00:38:58,440 --> 00:39:01,720 Speaker 3: nature a pan Chinavagata, which is Microsoft Chief Product Officer 789 00:39:01,800 --> 00:39:05,040 Speaker 3: of Experiences and Devices. Now we've got planning coming up 790 00:39:05,320 --> 00:39:08,560 Speaker 3: turning to the battle of contact sport for chap pot 791 00:39:08,600 --> 00:39:10,400 Speaker 3: dominance into a business. 792 00:39:10,520 --> 00:39:12,800 Speaker 2: Look, we're talking to the co founder of lm Arena. 793 00:39:13,120 --> 00:39:14,520 Speaker 2: That's an exposit Revie Technology