WEBVTT - Bloomberg Tech Summit Special 0:00:02.520 --> 0:00:09.160 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.240 --> 0:00:14.960 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.400 --> 0:00:39.680 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:36.000 --> 0:00:37.280 Live from San Francisco. 0:00:37.400 --> 0:00:40.279 This is a special edition of Bloomberg Technology Live from 0:00:40.280 --> 0:00:41.320 the Bloomberg Tech Summit. 0:00:41.479 --> 0:00:41.680 Yeah. 0:00:41.680 --> 0:00:45.120 Absolutely, leaders from across tech and business Gavitt here to 0:00:45.159 --> 0:00:48.879 discuss how they're going to navigate economic, geopolitical uncertainty and 0:00:49.000 --> 0:00:51.519 multiply the opportunities in that landscape. 0:00:51.520 --> 0:00:53.160 We'll be hearing from some of those speakers. 0:00:53.200 --> 0:00:56.320 We kicked it off last night with incredible conversations with 0:00:56.360 --> 0:00:59.920 Alphabets and the pitch I metus Andrew Bosworth right now. 0:01:00.000 --> 0:01:02.520 Now the tech sector is also very focused. Caro and 0:01:02.600 --> 0:01:06.080 markets are right about the discussion between President Trump and 0:01:06.200 --> 0:01:07.559 China's EUGENPI. 0:01:07.240 --> 0:01:09.720 And it's giving a positive spin to markets and as 0:01:09.760 --> 0:01:11.840 that coming out of its lows, we're now training higher. 0:01:11.840 --> 0:01:14.560 Look not gargantuan moves. We're up about three or four 0:01:14.600 --> 0:01:17.000 tenths of a percent on the NASAK one hundreds you'll see, 0:01:17.160 --> 0:01:20.399 but we are trending higher as we see a positive 0:01:20.440 --> 0:01:23.000 signal coming from President Trump that they're going to be meeting. 0:01:22.800 --> 0:01:25.120 Yet further with it, cause the first. 0:01:24.959 --> 0:01:27.880 Lady going to China and indeed a reciprocal kind of 0:01:28.080 --> 0:01:30.360 discussion coming with the Chinese leaders come to the US. 0:01:30.360 --> 0:01:33.320 But more broadly, rare Earth. Is there any clarity on 0:01:33.400 --> 0:01:34.479 rare Earth? That's we want to hear. 0:01:34.720 --> 0:01:37.759 Let's get some news breaking out of the Bloomberg Tech Summit. Anderil, 0:01:37.800 --> 0:01:40.840 the defense tech company that's quickly become a major player 0:01:41.160 --> 0:01:44.760 in US national security, has just closed its latest funding 0:01:44.760 --> 0:01:47.160 around joining us for more is Trey Stevens, co founder 0:01:47.319 --> 0:01:50.280 and executive chairman of Anderil, is also a partner at 0:01:50.280 --> 0:01:53.160 Founder's Fund. He will be a speaker as well at 0:01:53.160 --> 0:01:58.000 the Tech summit later today. Trey, good morning, congratulations, This 0:01:58.040 --> 0:02:01.400 is Series G. What are the details and this seems 0:02:01.440 --> 0:02:02.960 meaningful for Anderill? 0:02:03.120 --> 0:02:05.880 It is, you know, as we continue working on building 0:02:05.920 --> 0:02:08.400 a company that has the capacity to scale into the 0:02:08.480 --> 0:02:11.480 largest problems for the national security community, we thought it 0:02:11.520 --> 0:02:14.160 was really important to shore up the balance sheet and 0:02:14.200 --> 0:02:16.280 make sure that we have the ability to deploy capital 0:02:16.320 --> 0:02:20.040 into these manufacturing and production problem sets that we're working on. 0:02:20.600 --> 0:02:22.360 The round ended up being a two and a half 0:02:22.400 --> 0:02:25.800 billion dollar round at an evaluation of thirty point five 0:02:25.880 --> 0:02:29.560 billion post money. It's a tremendous opportunity for us to 0:02:29.600 --> 0:02:33.160 continue growing the team, growing the infrastructure in our ability 0:02:33.200 --> 0:02:35.880 to really ramp up into these bigger problems. 0:02:35.680 --> 0:02:37.480 At sound is fund led around. 0:02:37.840 --> 0:02:40.399 You have an interesting role as executive chair at Anderill, 0:02:41.800 --> 0:02:44.119 but you reccuse yourself from the found This fun part 0:02:44.200 --> 0:02:47.480 of that, I believe right like one of it's not 0:02:47.520 --> 0:02:48.560 their biggest check ever. 0:02:48.800 --> 0:02:50.880 Yeah, the largest check and founders on history. 0:02:51.120 --> 0:02:53.040 We put one billion dollars into the two and a 0:02:53.080 --> 0:02:54.080 half billion dollar round. 0:02:55.120 --> 0:02:59.520 Okay, why is this commitment, this necessary money right here, 0:02:59.600 --> 0:02:59.880 right now? 0:03:00.040 --> 0:03:02.320 Is this gonna be the last one before a potential IPO? 0:03:02.840 --> 0:03:04.600 Oh man, it's a great question. You know, there are 0:03:04.639 --> 0:03:06.600 a lot of ways to raise capital. It's not just 0:03:06.760 --> 0:03:09.800 the possibility by po Obviously, long term, we continue to 0:03:09.800 --> 0:03:13.680 believe that andrel is the shape of a publicly traded company. 0:03:14.280 --> 0:03:17.040 We're not in any you know, rapid path to doing that. 0:03:17.600 --> 0:03:20.200 We're certainly, you know, going through the processes that are 0:03:20.200 --> 0:03:22.880 required to prepare for doing something like that in you know, 0:03:22.960 --> 0:03:26.560 the medium term. But right now we're just very focused 0:03:26.600 --> 0:03:29.200 on the mission at hand. Going at this as hard 0:03:29.200 --> 0:03:31.120 as we can. Does that mean we raised another private 0:03:31.160 --> 0:03:33.840 round of capital at some point? Maybe hard to say. 0:03:34.480 --> 0:03:37.120 You know, we're always surprised at how how much demand 0:03:37.240 --> 0:03:40.680 there is in these massively over subscriber on how the 0:03:40.760 --> 0:03:44.480 subscribed space it was a lot like eight to ten 0:03:44.720 --> 0:03:46.800 x of what we had the capacity to take on. 0:03:47.680 --> 0:03:50.040 You know, there's a lot of players that are starting 0:03:50.080 --> 0:03:54.040 to figure out that the momentum is drolling into you know, 0:03:54.200 --> 0:03:57.360 being able to do this at Androil, and I think 0:03:57.400 --> 0:03:59.080 there's just a lot of a lot of interest from 0:03:59.080 --> 0:04:02.160 growth funds, across server fonds, from mutual funds for getting 0:04:02.160 --> 0:04:04.640 a bite of that before there's a public market opportunity. 0:04:04.800 --> 0:04:07.960 Well interesting, you say, getting a bite of the action 0:04:08.120 --> 0:04:11.920 when it comes more broadly to defense, Suddenly all the 0:04:11.920 --> 0:04:14.160 Silicon Valley kind of wants to be in defense and 0:04:14.200 --> 0:04:17.760 in US manufacturing. In fact, Boz Andrew Bosworth of Meta 0:04:17.920 --> 0:04:21.640 yesterday talking about how maybe there's some bigger patriotism than 0:04:21.640 --> 0:04:22.920 we realized across Silicon Valley. 0:04:22.960 --> 0:04:23.520 Just take a listen. 0:04:24.440 --> 0:04:27.880 There's a much stronger patriotic underpinning that I think people 0:04:27.920 --> 0:04:30.880 give Silicon Valley credit for. But taking a step deeper, 0:04:31.760 --> 0:04:35.080 this is actually a return to grace for the Valley, 0:04:35.080 --> 0:04:38.320 potentially not just from Meta, but from Google and other companies. 0:04:38.800 --> 0:04:42.400 The Valley was founded on a three way investment between 0:04:42.440 --> 0:04:46.479 the military, academics and private industry. That was the founding 0:04:46.520 --> 0:04:49.080 of it. There would be no technology if we weren't 0:04:49.120 --> 0:04:53.039 all tasked with the problem of computing naval ballistic trajectories 0:04:54.320 --> 0:04:55.640 during the first two World Wars. 0:04:57.120 --> 0:05:00.760 You have a partnership the technology that Meta makes working 0:05:00.760 --> 0:05:01.799 hand in hand with Andreil. 0:05:01.880 --> 0:05:04.000 Interesting of course that Palmer. 0:05:03.800 --> 0:05:06.080 Lucky now goes back to a company that he have 0:05:06.160 --> 0:05:08.520 caused sold Oculus to in many ways with this partnership, 0:05:09.080 --> 0:05:10.880 what does it look like in more partnership is going 0:05:10.880 --> 0:05:12.279 to be erupting him? 0:05:12.720 --> 0:05:16.000 Well, I mean to Bas's point. You know, the world 0:05:16.000 --> 0:05:18.960 has changed a lot in the last eight years. Andrew 0:05:19.000 --> 0:05:23.280 actually turns eight years old tomorrow. We're approaching our anniversary, 0:05:23.320 --> 0:05:25.520 which is the anniversary of D Day as well. We 0:05:25.560 --> 0:05:28.039 started the company on the seventy third anniversary of D Day, 0:05:28.480 --> 0:05:32.800 recognizing there's an important contribution for not only ourselves but 0:05:32.839 --> 0:05:37.719 also the American enterprise into national security efforts. 0:05:38.360 --> 0:05:40.000 You know, Palmer was fired. 0:05:39.720 --> 0:05:42.760 By Meta in twenty sixteen for his politics. You know, 0:05:42.839 --> 0:05:46.960 there's a Google Maven walkouts and protests. The reality is 0:05:46.960 --> 0:05:50.479 is that the silent majority actually believes that these things 0:05:50.520 --> 0:05:53.240 are really, really important to work on, and you know, 0:05:53.440 --> 0:05:55.440 Palmer being able to go back to his roots and 0:05:55.520 --> 0:05:57.880 reach a point of forgiveness with the Meta team to 0:05:57.960 --> 0:06:00.400 focus on the most important task at hand, which is 0:06:00.720 --> 0:06:05.480 leaning in on the best in class optics and VRAR 0:06:05.600 --> 0:06:07.839 work that they're doing to contribute to the mission that 0:06:07.880 --> 0:06:10.440 we're leading with the IBS opportunity with the DoD. 0:06:10.600 --> 0:06:13.159 What was really interesting about how Buzz explained it is 0:06:13.200 --> 0:06:16.960 that they are basically providing components. We actually had delian 0:06:17.200 --> 0:06:18.719 As off on the show the other day in the 0:06:18.760 --> 0:06:21.320 context of founders and in Duro sat and what he 0:06:21.400 --> 0:06:25.359 was talking about is that the innovation of big tech 0:06:25.680 --> 0:06:29.080 is being driven by consumer electronics, right, and thinking about 0:06:29.120 --> 0:06:32.000 your supply chain. Could you just explain mechanics of how 0:06:32.400 --> 0:06:34.920 Meta works with you and why it's useful to you 0:06:35.320 --> 0:06:37.480 for them to come up with these components in the 0:06:37.839 --> 0:06:39.240 products that you want to do, right. 0:06:39.279 --> 0:06:42.240 I mean, they're obviously they've done an incredible amount for 0:06:42.360 --> 0:06:45.839 the ar VR community. I think Palmer has been on 0:06:45.920 --> 0:06:49.560 record many times saying that Zuckerberg is VR boy number one. 0:06:50.000 --> 0:06:51.400 He's led the way. 0:06:51.240 --> 0:06:53.279 With putting a ton of capital into solving some of 0:06:53.320 --> 0:06:56.960 these basic science and research problems around optics, you know, 0:06:57.000 --> 0:07:00.279 the physics challenges that make this really difficult. You know, 0:07:00.279 --> 0:07:02.680 we don't have to take all of that on ourselves. 0:07:02.880 --> 0:07:05.160 We can go and partner with someone in America who 0:07:05.200 --> 0:07:07.560 believes in the mission, who's done a lot of that work, 0:07:07.600 --> 0:07:09.800 and then we can bring that into an integrated system, 0:07:09.880 --> 0:07:12.360 which is really what we do as a defense products company. 0:07:12.760 --> 0:07:17.200 Let's talk politics. You talked about Palmer's politics. You know, 0:07:17.240 --> 0:07:22.400 the story today is about President Trump speaking with China's 0:07:22.480 --> 0:07:26.360 using pain, and at the heart of that is rare earths. 0:07:27.040 --> 0:07:30.680 But I actually think for you guys, you've historically when 0:07:30.680 --> 0:07:33.960 we've discussed China taken a different approach, which is, you 0:07:34.040 --> 0:07:39.840 believe anderall is critically important now because of future hostilities 0:07:40.080 --> 0:07:40.920 from China. 0:07:41.120 --> 0:07:42.840 Just explain that that thesis. 0:07:43.480 --> 0:07:46.520 Yeah, I mean, obviously there's a huge supply chain component 0:07:46.600 --> 0:07:48.960 to all of this. China is right in the middle 0:07:49.040 --> 0:07:52.680 of most of these conversations around manufacturing production, supply chain 0:07:53.120 --> 0:07:54.720 challenges with natural. 0:07:54.400 --> 0:07:56.360 Resources, including raress medals. 0:07:57.240 --> 0:07:59.520 You know at ANDROL We've been thinking about this long 0:07:59.600 --> 0:08:03.200 before the you know, the second Trump administration started. We've 0:08:03.240 --> 0:08:05.160 been shoring up to make sure that our Tier one 0:08:05.200 --> 0:08:09.320 suppliers are being sourced from allied nations, the US and 0:08:09.360 --> 0:08:10.239 our allied nations. 0:08:11.040 --> 0:08:13.160 And you know, for the first time ever, I. 0:08:13.160 --> 0:08:16.520 Think that the entirety of the government is taking supply 0:08:16.640 --> 0:08:19.240 chain and seriously as a national security asset rather than 0:08:19.360 --> 0:08:21.920 just something that's kind of like important from a trade context. 0:08:22.000 --> 0:08:25.280 So I think it's incredibly critical that we don't wait 0:08:25.400 --> 0:08:29.000 until we have you know, our access to critical materials, 0:08:29.040 --> 0:08:32.040 our access to chips, our access to all of these 0:08:32.080 --> 0:08:33.120 things removed from. 0:08:33.080 --> 0:08:34.480 US we need already happening. 0:08:34.760 --> 0:08:37.200 Isn't there a limitation already on rare US And how 0:08:37.200 --> 0:08:38.240 does that impact your business? 0:08:38.360 --> 0:08:40.040 There is? And you know, this is the type of 0:08:40.080 --> 0:08:40.360 thing that. 0:08:40.320 --> 0:08:42.520 You have to plan for well ahead of time, believing 0:08:42.559 --> 0:08:45.240 that at some point, yeah, we might lose access. And 0:08:45.280 --> 0:08:49.920 I think all you know, intelligent and thoughtful American companies 0:08:49.960 --> 0:08:51.800 need to be thinking about how to how to address 0:08:51.840 --> 0:08:55.240 that problem before it actually becomes a really critical existential threat. 0:08:55.320 --> 0:08:57.880 Well, has the administration been doing it in a methodical 0:08:57.880 --> 0:08:59.880 manner that you wanted to see because at times has 0:08:59.880 --> 0:09:02.720 been and worry about basically the timeframes that we get 0:09:02.720 --> 0:09:05.199 cut off too quickly before the US has really understood 0:09:05.200 --> 0:09:08.120 its own supply chain and resources. Many companies haven't been 0:09:08.160 --> 0:09:09.600 looking at this as well as Andrew. 0:09:09.800 --> 0:09:12.000 Absolutely, yeah, I mean and Andrew, certainly, we've been thinking 0:09:12.000 --> 0:09:14.240 about it a lot, and through the founders on context, 0:09:14.280 --> 0:09:16.319 I spend most of my day thinking. 0:09:16.040 --> 0:09:17.880 About this exact problem. 0:09:17.960 --> 0:09:20.160 You know that g has said very clearly that he 0:09:20.240 --> 0:09:23.800 intends to you know, reclaim Taiwan by twenty twenty seven. 0:09:23.840 --> 0:09:25.320 That's a really short timeline. 0:09:25.400 --> 0:09:27.640 That doesn't mean that we have five or ten years 0:09:27.679 --> 0:09:30.600 to build up semiconductor of manufacturing capabilities. It means that 0:09:30.760 --> 0:09:34.520 we have like two years eighteen months, and so, you know, 0:09:34.559 --> 0:09:36.320 we really need to be thinking about these things. 0:09:36.360 --> 0:09:38.280 I think there's it's incumbent upon. 0:09:38.160 --> 0:09:41.480 The US tech community to contribute in ways. It's incumbent 0:09:41.520 --> 0:09:44.120 upon the US venture community to put capital towards solving 0:09:44.120 --> 0:09:47.440 some of these problems, and certainly every company needs to 0:09:47.440 --> 0:09:49.520 have a plan for how they're going to address that 0:09:49.559 --> 0:09:50.840 should it become a real issue. 0:09:52.000 --> 0:09:52.720 Golden Dome. 0:09:54.559 --> 0:09:58.920 Golden Dome, Yes, you know, obviously there's very few things 0:09:58.960 --> 0:10:00.880 as exciting as the idea of protecting the. 0:10:00.880 --> 0:10:03.240 U s homeland from airborne threats. 0:10:03.960 --> 0:10:06.000 You know, we've been engaged in a lot of conversations 0:10:06.040 --> 0:10:08.360 there too soon to comment on anything. 0:10:08.480 --> 0:10:09.640 That's my understanding, though. 0:10:09.640 --> 0:10:12.280 So when this big announcement happened at the White House, 0:10:13.040 --> 0:10:16.000 there were some of the sort of legacy prime defense 0:10:16.000 --> 0:10:19.480 contractors named Lockheed Martin being one, and a lot of 0:10:19.480 --> 0:10:21.719 people that I speak to are surprised that the name 0:10:21.800 --> 0:10:25.000 Anderill wasn't said over and over again because of the 0:10:25.040 --> 0:10:30.000 position you now have as a supplier to the US 0:10:30.120 --> 0:10:34.240 military apparatus. But it is early in this process. I 0:10:34.280 --> 0:10:36.800 guess the point is what will happen. Do you have 0:10:36.880 --> 0:10:41.079 to make pitches and competitive bids and say here's what 0:10:41.120 --> 0:10:43.800 we can offer in this or is it a case 0:10:43.840 --> 0:10:46.040 of the administration come into you and say do this 0:10:46.200 --> 0:10:46.680 for us. 0:10:47.000 --> 0:10:50.080 Well, it'll obviously have to be a tremendously multi layered approach. 0:10:50.120 --> 0:10:52.520 There's not going to be a single vendor that provides 0:10:52.600 --> 0:10:56.120 the entirety of this system. You know, there's interfectors, interceptors, 0:10:56.200 --> 0:10:59.520 things like that, space based interceptors, you know, all the 0:10:59.559 --> 0:11:01.560 censored works that are going to be required, and then 0:11:01.600 --> 0:11:04.719 a software layer to coordinate and see two all of. 0:11:04.679 --> 0:11:06.120 That activity that's going on. 0:11:06.960 --> 0:11:09.920 So you know, it's not just going to be Andrew, 0:11:09.920 --> 0:11:12.240 It's not just going to be Lackey Martin. I believe 0:11:12.280 --> 0:11:15.000 that it will likely be a you know, a mosaic 0:11:15.200 --> 0:11:17.400 of a lot of different companies coming together to make 0:11:17.440 --> 0:11:19.520 sure that this problem is solved in the best way possible. 0:11:19.559 --> 0:11:23.080 You talk about space, there is one particular founder who 0:11:23.120 --> 0:11:25.000 is very close to the White House who now seems 0:11:25.040 --> 0:11:26.840 to be less close, and it's Elon Musk. How are 0:11:26.880 --> 0:11:30.800 you seeing the relationship of venture with the administration right now? 0:11:30.840 --> 0:11:34.559 And is there a repercussion as Elon withdraws and then 0:11:34.920 --> 0:11:37.240 seemingly gets pretty angry at the state of the current 0:11:37.679 --> 0:11:39.760 spending mill or at least the way he sees it 0:11:39.760 --> 0:11:41.679 as a spending bill, they says reconciliation. 0:11:42.120 --> 0:11:44.960 Yeah, well, I mean we're still very kind of near 0:11:45.000 --> 0:11:47.360 in on the start of the administration. We're only what 0:11:47.480 --> 0:11:51.240 five months into things right now. I do think that 0:11:51.280 --> 0:11:55.160 this administration is incredibly communicative with the tech community, with 0:11:55.240 --> 0:11:59.040 the venture community. The channels are open, they're curious, they're 0:11:59.080 --> 0:12:00.439 looking for information. 0:12:00.480 --> 0:12:02.400 Do you have a direct line with President Trump at all? 0:12:03.400 --> 0:12:06.720 There's lots of paths into the White House without without 0:12:06.760 --> 0:12:10.240 without commenting any further on that. But yeah, I think 0:12:10.280 --> 0:12:12.440 I think that there's a tremendous openness to having that 0:12:12.559 --> 0:12:15.240 dialogue a lot of these initiatives, whether you're talking about 0:12:15.240 --> 0:12:18.200 the big beautiful bill. You know, I like what Elon said, 0:12:18.200 --> 0:12:20.160 it's difficult for a bit a bill to be both 0:12:20.160 --> 0:12:22.120 big and beautiful. It can be big or it can 0:12:22.160 --> 0:12:24.960 be beautiful. It can't be both. But you know, I 0:12:25.000 --> 0:12:30.319 think you know there's there's at least receptivity and we'll 0:12:30.320 --> 0:12:32.520 see how some of these big programs, these big plans 0:12:32.600 --> 0:12:34.040 shape over over the next year. 0:12:34.080 --> 0:12:36.600 And the reason Carrie's question is important is you know, 0:12:36.679 --> 0:12:38.560 you were part of the contingent that went to the 0:12:38.559 --> 0:12:41.679 goal for the Middle East with the President in Corporate America. 0:12:42.040 --> 0:12:45.200 Let's end here with a look at the future. After 0:12:45.240 --> 0:12:47.280 you and I were together in Ohio in January, my 0:12:47.360 --> 0:12:50.640 phone just kept ringing from private companies and startups that 0:12:50.679 --> 0:12:54.000 are in the defense technology space. Is there a world 0:12:54.080 --> 0:12:57.160 where andrel and three or four other players exist and 0:12:57.240 --> 0:12:59.920 coexist or is it just anderill and nothing out. 0:13:00.480 --> 0:13:01.880 Well, first of all, I want to say thanks for 0:13:01.920 --> 0:13:06.120 coming to the Arsenal launch in thank You're one of 0:13:06.120 --> 0:13:09.240 the few people X Androl who has even seen the 0:13:09.320 --> 0:13:11.360 site in Ohio, so it was cool to have you out. 0:13:11.400 --> 0:13:12.360 Thanks so much for doing that. 0:13:13.440 --> 0:13:16.440 Yeah, you know, I think categories are tough, right, Like 0:13:16.640 --> 0:13:18.400 there usually isn't such. 0:13:18.240 --> 0:13:19.840 A thing as category investing. 0:13:19.960 --> 0:13:21.760 You know, if you're a social media investor and you 0:13:21.800 --> 0:13:24.400 didn't invest in Facebook, you probably lost money. If you're 0:13:24.400 --> 0:13:26.480 a space investor and you didn't invest in SpaceX, you 0:13:26.480 --> 0:13:28.839 probably lost money. Do I think that there's room for 0:13:28.880 --> 0:13:31.440 a couple of players to make a big entry into 0:13:31.520 --> 0:13:33.760 the defense space. Sure, I don't think there's going to 0:13:33.760 --> 0:13:36.760 be multiple anerles. And that's really our goal is we're 0:13:36.760 --> 0:13:40.440 trying to create a concentrated opportunity to be a next 0:13:40.480 --> 0:13:43.720 generation defense products company that goes out and wins these 0:13:43.800 --> 0:13:46.559 major programs where we're going to have the ability to 0:13:46.600 --> 0:13:51.760 bring software, chops, the you know, autonomy, speed scale manufacturing 0:13:51.960 --> 0:13:54.640 into the defense industry for the first time as a 0:13:54.640 --> 0:13:56.360 new player in a really long time, a. 0:13:56.320 --> 0:13:58.839 New player that is now worth one than thirty billion dollars, 0:13:58.880 --> 0:14:01.079 just double the valuation having raised more than two billion. 0:14:01.120 --> 0:14:04.080 Tracey Humans, it's a joy to have you Androil executive chairman, 0:14:04.240 --> 0:14:07.760 founder's fun partner as well. Now so much more coming 0:14:07.840 --> 0:14:12.559 up about clearly the future of AI. Alphabet CEO, son 0:14:12.600 --> 0:14:16.040 of Pitchye, following his panel at Bloomberg Tech Summit last night, 0:14:16.160 --> 0:14:19.720 talking about actually competition, I was looking at AI. 0:14:19.880 --> 0:14:20.920 This is really big technology. 0:14:21.920 --> 0:14:25.440 You know, there's no doubt to me that three years 0:14:25.480 --> 0:14:26.960 from now there will be a company which will be 0:14:27.000 --> 0:14:29.240 dominant in this AI age, which we don't even know 0:14:29.280 --> 0:14:30.120 the name of today. 0:14:40.000 --> 0:14:42.880 Welcome back to a special edition of Bloomberg Technology Live 0:14:42.920 --> 0:14:44.440 from the Bloomberg Tech Summit. 0:14:44.560 --> 0:14:45.960 Alphabet CEOs and the pitch I. 0:14:46.040 --> 0:14:49.760 Says the company will continue to expand its engineering ranks 0:14:49.760 --> 0:14:54.080 at least into twenty twenty six, emphasizing human talent remains 0:14:54.120 --> 0:14:57.000 key despite AI investments. That was part of the discussion 0:14:57.040 --> 0:14:59.680 with Bloomberg's Emily Chang last night when we kicked off 0:14:59.680 --> 0:15:00.200 the tech. 0:15:00.040 --> 0:15:02.480 Some of here in San Francisco. Here's more of that conversation. 0:15:03.440 --> 0:15:08.120 In twenty twenty five, our capex is seventy five billion dollars, right, 0:15:08.200 --> 0:15:12.440 so we are definitely investing for the long run. But 0:15:12.920 --> 0:15:17.680 you know, it's the same investment which powers businesses from 0:15:17.840 --> 0:15:22.800 search to YouTube to cloud, to workspace, to Android and 0:15:22.920 --> 0:15:26.840 play to way more right and so, and to our 0:15:26.880 --> 0:15:31.840 subscriptions business. We just launched Google AI pro and Ultra 0:15:32.000 --> 0:15:34.560 and you know it's definitely doing well. I mean pleased 0:15:34.560 --> 0:15:37.720 to see the reception. So I think it's such a 0:15:37.760 --> 0:15:42.480 profound technology. I feel the opportunity ahead is bigger than 0:15:42.560 --> 0:15:44.200 the opportunity we had in the text. 0:15:44.480 --> 0:15:48.440 So to double click there, if I may, what specific 0:15:48.720 --> 0:15:52.920 new revenue streams do you see increasing and what revenue 0:15:52.960 --> 0:15:54.840 streams do you see decreasing. 0:15:55.960 --> 0:15:59.760 The growth in cloud like Vertex AI is up forty 0:15:59.760 --> 0:16:03.240 eight in usage on a token basis just in the 0:16:03.320 --> 0:16:06.800 last twelve months, so obviously you know we have billions 0:16:06.840 --> 0:16:11.440 of dollars in providing AI based solutions in AIS and 0:16:11.560 --> 0:16:15.840 infrastructure AI subscriptions. 0:16:14.960 --> 0:16:16.920 So many many new businesses. 0:16:17.720 --> 0:16:20.240 You have over one hundred and eighty thousand employees right now? 0:16:20.840 --> 0:16:22.800 Is it half that In the future. 0:16:23.240 --> 0:16:27.520 I expect we will grow from our current engineering base 0:16:27.720 --> 0:16:32.240 even into next year, right because it allows us to 0:16:32.280 --> 0:16:37.760 do more. I think the opportunity space is also increasing. 0:16:38.600 --> 0:16:41.680 I just view this as making engineers dramatically more productive, 0:16:42.920 --> 0:16:45.240 getting a lot of the mundane aspects out of what 0:16:45.280 --> 0:16:49.000 they do, allowing them to spend on higher value added tasks. 0:16:49.600 --> 0:16:51.480 But that means it's an accelerator. 0:16:51.680 --> 0:16:52.800 People will be able to. 0:16:52.760 --> 0:16:56.320 Do more, which means maybe we'll create new products and 0:16:56.360 --> 0:16:58.480 hence we will need more people, at least in the 0:16:58.480 --> 0:16:59.280 near term. 0:16:59.680 --> 0:17:03.480 To me, it looks like, you know, we will. 0:17:03.400 --> 0:17:08.480 Expand engineering velocity, and that doesn't mean we're constrained in 0:17:08.520 --> 0:17:09.520 what we will do. 0:17:09.560 --> 0:17:11.600 We'll end up doing more as a company as well. 0:17:11.680 --> 0:17:15.159 But in two trials now, judges have said that Google 0:17:15.200 --> 0:17:18.600 is a monopoly in search and partly a monopoly in ads. 0:17:19.080 --> 0:17:19.480 How do you. 0:17:19.400 --> 0:17:23.520 Address the concern that your AI is built on an 0:17:23.560 --> 0:17:26.240 existing domination of search and ads and that this is 0:17:26.280 --> 0:17:28.640 just reinforcing original monopolies. 0:17:30.440 --> 0:17:33.200 First of all, you know, we disagree with the rulings 0:17:33.200 --> 0:17:37.600 and we are in the process of appealing these things. Look, 0:17:37.720 --> 0:17:41.320 if anything, this moment has shown I don't think there's 0:17:41.440 --> 0:17:44.440 anyone here who is using anything they don't want to use. 0:17:45.680 --> 0:17:47.840 You look at the success of chat repd or any 0:17:47.880 --> 0:17:48.560 other product. 0:17:49.040 --> 0:17:50.520 People are literally. 0:17:50.119 --> 0:17:53.960 Have more choice than ever before. The reason people use 0:17:54.000 --> 0:17:56.120 Google is because they want to use it, right, and 0:17:56.200 --> 0:18:00.399 so I think I think we continue to innovate. I 0:18:00.440 --> 0:18:04.159 think choice is good for users, competition is good for 0:18:04.200 --> 0:18:07.359 the world. So that's how I see it. 0:18:07.600 --> 0:18:09.680 You said the remedies proposed are too extreme. 0:18:09.720 --> 0:18:14.840 Would you ever voluntarily break yourself up control your own destiny? 0:18:15.600 --> 0:18:19.320 Compared to what the initial scope of the ruling was, 0:18:19.440 --> 0:18:24.680 some of the proposed solutions are far overreaching. We'll see 0:18:24.680 --> 0:18:25.520 how it plays out. 0:18:26.000 --> 0:18:27.880 I've heard you say a few times that you think 0:18:27.920 --> 0:18:31.840 of AI as an expansionary moment, but so far it 0:18:31.880 --> 0:18:35.240 does seem to be favoring tech giants and well funded 0:18:35.240 --> 0:18:38.879 startups with access to GPUs and data centers and enormous 0:18:38.880 --> 0:18:42.840 amounts of capital, Like, isn't this really concentrating power in 0:18:42.920 --> 0:18:47.280 fewer hands? And is AI just another winner take all game. 0:18:48.000 --> 0:18:50.720 I'm confident there is a company that's going to be 0:18:50.760 --> 0:18:54.720 created with AI, just like when the Internet happened. Many 0:18:54.840 --> 0:18:59.280 years after the Internet happened, googledn't exist. So you know, 0:18:59.320 --> 0:19:02.960 there's no out to me that three years from now 0:19:02.960 --> 0:19:04.879 there'll be a company which will be dominant in this 0:19:05.000 --> 0:19:07.680 AI age, which we don't even know the name of today. Yeah, 0:19:07.760 --> 0:19:09.680 that's the only way things work in the future. 0:19:11.480 --> 0:19:14.520 A confident alphabet CEO sin of pitch. I there along 0:19:14.520 --> 0:19:17.199 with Boomberg's Emily Chang. Right, now, we can talk it 0:19:17.320 --> 0:19:19.880 all through with executive editor Tom Giles, who joins us. 0:19:19.960 --> 0:19:22.760 From all that conversation you were sitting down with Bauz 0:19:22.960 --> 0:19:25.359 from Meta, after that with Sunder, but just going back 0:19:25.359 --> 0:19:28.159 to what Snow was saying around his optimism on jobs. 0:19:28.400 --> 0:19:29.280 Look, today, one of the. 0:19:29.280 --> 0:19:31.679 Most read stories on the NEWBG terminal is Visita Equity 0:19:31.680 --> 0:19:35.479 Partners Robert Smith saying, look at my conference today, sixty 0:19:35.520 --> 0:19:37.600 percent of you are going to need to find new jobs. 0:19:37.720 --> 0:19:39.359 White collar work is going out. 0:19:39.440 --> 0:19:40.840 But keeps going on. And I want to quote, do 0:19:41.000 --> 0:19:41.600 you d just. 0:19:41.600 --> 0:19:45.199 Last week Dario from Ammiday Fromanthropic fifty percent? 0:19:45.320 --> 0:19:45.600 Right. 0:19:47.200 --> 0:19:50.960 Look, the fact is AI is definitely coming for some 0:19:51.200 --> 0:19:55.040 engineering jobs. The number, the percentage of coding that is 0:19:55.080 --> 0:19:59.000 happening from artificial intelligence seems to keep creeping up and 0:19:59.080 --> 0:20:01.600 up and up. Some people would argue that's going to 0:20:01.600 --> 0:20:03.640