Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of
Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2: Live from San Francisco.
Speaker 3: This is a special edition of Bloomberg Technology Live from
Speaker 3: the Bloomberg Tech Summit.
Speaker 4: Yeah.
Speaker 5: Absolutely, leaders from across tech and business Gavitt here to
Speaker 5: discuss how they're going to navigate economic, geopolitical uncertainty and
Speaker 5: multiply the opportunities in that landscape.
Speaker 4: We'll be hearing from some of those speakers.
Speaker 5: We kicked it off last night with incredible conversations with
Speaker 5: Alphabets and the pitch I metus Andrew Bosworth right now.
Speaker 5: Now the tech sector is also very focused. Caro and
Speaker 5: markets are right about the discussion between President Trump and
Speaker 5: China's EUGENPI.
Speaker 3: And it's giving a positive spin to markets and as
Speaker 3: that coming out of its lows, we're now training higher.
Speaker 3: Look not gargantuan moves. We're up about three or four
Speaker 3: tenths of a percent on the NASAK one hundreds you'll see,
Speaker 3: but we are trending higher as we see a positive
Speaker 3: signal coming from President Trump that they're going to be meeting.
Speaker 2: Yet further with it, cause the first.
Speaker 3: Lady going to China and indeed a reciprocal kind of
Speaker 3: discussion coming with the Chinese leaders come to the US.
Speaker 2: But more broadly, rare Earth. Is there any clarity on
Speaker 2: rare Earth? That's we want to hear.
Speaker 5: Let's get some news breaking out of the Bloomberg Tech Summit. Anderil,
Speaker 5: the defense tech company that's quickly become a major player
Speaker 5: in US national security, has just closed its latest funding
Speaker 5: around joining us for more is Trey Stevens, co founder
Speaker 5: and executive chairman of Anderil, is also a partner at
Speaker 5: Founder's Fund. He will be a speaker as well at
Speaker 5: the Tech summit later today. Trey, good morning, congratulations, This
Speaker 5: is Series G. What are the details and this seems
Speaker 5: meaningful for Anderill?
Speaker 6: It is, you know, as we continue working on building
Speaker 6: a company that has the capacity to scale into the
Speaker 6: largest problems for the national security community, we thought it
Speaker 6: was really important to shore up the balance sheet and
Speaker 6: make sure that we have the ability to deploy capital
Speaker 6: into these manufacturing and production problem sets that we're working on.
Speaker 6: The round ended up being a two and a half
Speaker 6: billion dollar round at an evaluation of thirty point five
Speaker 6: billion post money. It's a tremendous opportunity for us to
Speaker 6: continue growing the team, growing the infrastructure in our ability
Speaker 6: to really ramp up into these bigger problems.
Speaker 4: At sound is fund led around.
Speaker 5: You have an interesting role as executive chair at Anderill,
Speaker 5: but you reccuse yourself from the found This fun part
Speaker 5: of that, I believe right like one of it's not
Speaker 5: their biggest check ever.
Speaker 7: Yeah, the largest check and founders on history.
Speaker 6: We put one billion dollars into the two and a
Speaker 6: half billion dollar round.
Speaker 3: Okay, why is this commitment, this necessary money right here,
Speaker 3: right now?
Speaker 2: Is this gonna be the last one before a potential IPO?
Speaker 6: Oh man, it's a great question. You know, there are
Speaker 6: a lot of ways to raise capital. It's not just
Speaker 6: the possibility by po Obviously, long term, we continue to
Speaker 6: believe that andrel is the shape of a publicly traded company.
Speaker 6: We're not in any you know, rapid path to doing that.
Speaker 6: We're certainly, you know, going through the processes that are
Speaker 6: required to prepare for doing something like that in you know,
Speaker 6: the medium term. But right now we're just very focused
Speaker 6: on the mission at hand. Going at this as hard
Speaker 6: as we can. Does that mean we raised another private
Speaker 6: round of capital at some point? Maybe hard to say.
Speaker 6: You know, we're always surprised at how how much demand
Speaker 6: there is in these massively over subscriber on how the
Speaker 6: subscribed space it was a lot like eight to ten
Speaker 6: x of what we had the capacity to take on.
Speaker 6: You know, there's a lot of players that are starting
Speaker 6: to figure out that the momentum is drolling into you know,
Speaker 6: being able to do this at Androil, and I think
Speaker 6: there's just a lot of a lot of interest from
Speaker 6: growth funds, across server fonds, from mutual funds for getting
Speaker 6: a bite of that before there's a public market opportunity.
Speaker 3: Well interesting, you say, getting a bite of the action
Speaker 3: when it comes more broadly to defense, Suddenly all the
Speaker 3: Silicon Valley kind of wants to be in defense and
Speaker 3: in US manufacturing. In fact, Boz Andrew Bosworth of Meta
Speaker 3: yesterday talking about how maybe there's some bigger patriotism than
Speaker 3: we realized across Silicon Valley.
Speaker 2: Just take a listen.
Speaker 8: There's a much stronger patriotic underpinning that I think people
Speaker 8: give Silicon Valley credit for. But taking a step deeper,
Speaker 8: this is actually a return to grace for the Valley,
Speaker 8: potentially not just from Meta, but from Google and other companies.
Speaker 8: The Valley was founded on a three way investment between
Speaker 8: the military, academics and private industry. That was the founding
Speaker 8: of it. There would be no technology if we weren't
Speaker 8: all tasked with the problem of computing naval ballistic trajectories
Speaker 8: during the first two World Wars.
Speaker 3: You have a partnership the technology that Meta makes working
Speaker 3: hand in hand with Andreil.
Speaker 2: Interesting of course that Palmer.
Speaker 3: Lucky now goes back to a company that he have
Speaker 3: caused sold Oculus to in many ways with this partnership,
Speaker 3: what does it look like in more partnership is going
Speaker 3: to be erupting him?
Speaker 6: Well, I mean to Bas's point. You know, the world
Speaker 6: has changed a lot in the last eight years. Andrew
Speaker 6: actually turns eight years old tomorrow. We're approaching our anniversary,
Speaker 6: which is the anniversary of D Day as well. We
Speaker 6: started the company on the seventy third anniversary of D Day,
Speaker 6: recognizing there's an important contribution for not only ourselves but
Speaker 6: also the American enterprise into national security efforts.
Speaker 7: You know, Palmer was fired.
Speaker 6: By Meta in twenty sixteen for his politics. You know,
Speaker 6: there's a Google Maven walkouts and protests. The reality is
Speaker 6: is that the silent majority actually believes that these things
Speaker 6: are really, really important to work on, and you know,
Speaker 6: Palmer being able to go back to his roots and
Speaker 6: reach a point of forgiveness with the Meta team to
Speaker 6: focus on the most important task at hand, which is
Speaker 6: leaning in on the best in class optics and VRAR
Speaker 6: work that they're doing to contribute to the mission that
Speaker 6: we're leading with the IBS opportunity with the DoD.
Speaker 5: What was really interesting about how Buzz explained it is
Speaker 5: that they are basically providing components. We actually had delian
Speaker 5: As off on the show the other day in the
Speaker 5: context of founders and in Duro sat and what he
Speaker 5: was talking about is that the innovation of big tech
Speaker 5: is being driven by consumer electronics, right, and thinking about
Speaker 5: your supply chain. Could you just explain mechanics of how
Speaker 5: Meta works with you and why it's useful to you
Speaker 5: for them to come up with these components in the
Speaker 5: products that you want to do, right.
Speaker 6: I mean, they're obviously they've done an incredible amount for
Speaker 6: the ar VR community. I think Palmer has been on
Speaker 6: record many times saying that Zuckerberg is VR boy number one.
Speaker 7: He's led the way.
Speaker 6: With putting a ton of capital into solving some of
Speaker 6: these basic science and research problems around optics, you know,
Speaker 6: the physics challenges that make this really difficult. You know,
Speaker 6: we don't have to take all of that on ourselves.
Speaker 6: We can go and partner with someone in America who
Speaker 6: believes in the mission, who's done a lot of that work,
Speaker 6: and then we can bring that into an integrated system,
Speaker 6: which is really what we do as a defense products company.
Speaker 5: Let's talk politics. You talked about Palmer's politics. You know,
Speaker 5: the story today is about President Trump speaking with China's
Speaker 5: using pain, and at the heart of that is rare earths.
Speaker 5: But I actually think for you guys, you've historically when
Speaker 5: we've discussed China taken a different approach, which is, you
Speaker 5: believe anderall is critically important now because of future hostilities
Speaker 5: from China.
Speaker 4: Just explain that that thesis.
Speaker 6: Yeah, I mean, obviously there's a huge supply chain component
Speaker 6: to all of this. China is right in the middle
Speaker 6: of most of these conversations around manufacturing production, supply chain
Speaker 6: challenges with natural.
Speaker 7: Resources, including raress medals.
Speaker 6: You know at ANDROL We've been thinking about this long
Speaker 6: before the you know, the second Trump administration started. We've
Speaker 6: been shoring up to make sure that our Tier one
Speaker 6: suppliers are being sourced from allied nations, the US and
Speaker 6: our allied nations.
Speaker 7: And you know, for the first time ever, I.
Speaker 6: Think that the entirety of the government is taking supply
Speaker 6: chain and seriously as a national security asset rather than
Speaker 6: just something that's kind of like important from a trade context.
Speaker 6: So I think it's incredibly critical that we don't wait
Speaker 6: until we have you know, our access to critical materials,
Speaker 6: our access to chips, our access to all of these
Speaker 6: things removed from.
Speaker 2: US we need already happening.
Speaker 3: Isn't there a limitation already on rare US And how
Speaker 3: does that impact your business?
Speaker 7: There is? And you know, this is the type of
Speaker 7: thing that.
Speaker 6: You have to plan for well ahead of time, believing
Speaker 6: that at some point, yeah, we might lose access. And
Speaker 6: I think all you know, intelligent and thoughtful American companies
Speaker 6: need to be thinking about how to how to address
Speaker 6: that problem before it actually becomes a really critical existential threat.
Speaker 3: Well, has the administration been doing it in a methodical
Speaker 3: manner that you wanted to see because at times has
Speaker 3: been and worry about basically the timeframes that we get
Speaker 3: cut off too quickly before the US has really understood
Speaker 3: its own supply chain and resources. Many companies haven't been
Speaker 3: looking at this as well as Andrew.
Speaker 6: Absolutely, yeah, I mean and Andrew, certainly, we've been thinking
Speaker 6: about it a lot, and through the founders on context,
Speaker 6: I spend most of my day thinking.
Speaker 7: About this exact problem.
Speaker 6: You know that g has said very clearly that he
Speaker 6: intends to you know, reclaim Taiwan by twenty twenty seven.
Speaker 7: That's a really short timeline.
Speaker 6: That doesn't mean that we have five or ten years
Speaker 6: to build up semiconductor of manufacturing capabilities. It means that
Speaker 6: we have like two years eighteen months, and so, you know,
Speaker 6: we really need to be thinking about these things.
Speaker 7: I think there's it's incumbent upon.
Speaker 6: The US tech community to contribute in ways. It's incumbent
Speaker 6: upon the US venture community to put capital towards solving
Speaker 6: some of these problems, and certainly every company needs to
Speaker 6: have a plan for how they're going to address that
Speaker 6: should it become a real issue.
Speaker 4: Golden Dome.
Speaker 6: Golden Dome, Yes, you know, obviously there's very few things
Speaker 6: as exciting as the idea of protecting the.
Speaker 7: U s homeland from airborne threats.
Speaker 6: You know, we've been engaged in a lot of conversations
Speaker 6: there too soon to comment on anything.
Speaker 4: That's my understanding, though.
Speaker 5: So when this big announcement happened at the White House,
Speaker 5: there were some of the sort of legacy prime defense
Speaker 5: contractors named Lockheed Martin being one, and a lot of
Speaker 5: people that I speak to are surprised that the name
Speaker 5: Anderill wasn't said over and over again because of the
Speaker 5: position you now have as a supplier to the US
Speaker 5: military apparatus. But it is early in this process. I
Speaker 5: guess the point is what will happen. Do you have
Speaker 5: to make pitches and competitive bids and say here's what
Speaker 5: we can offer in this or is it a case
Speaker 5: of the administration come into you and say do this
Speaker 5: for us.
Speaker 6: Well, it'll obviously have to be a tremendously multi layered approach.
Speaker 6: There's not going to be a single vendor that provides
Speaker 6: the entirety of this system. You know, there's interfectors, interceptors,
Speaker 6: things like that, space based interceptors, you know, all the
Speaker 6: censored works that are going to be required, and then
Speaker 6: a software layer to coordinate and see two all of.
Speaker 7: That activity that's going on.
Speaker 6: So you know, it's not just going to be Andrew,
Speaker 6: It's not just going to be Lackey Martin. I believe
Speaker 6: that it will likely be a you know, a mosaic
Speaker 6: of a lot of different companies coming together to make
Speaker 6: sure that this problem is solved in the best way possible.
Speaker 3: You talk about space, there is one particular founder who
Speaker 3: is very close to the White House who now seems
Speaker 3: to be less close, and it's Elon Musk. How are
Speaker 3: you seeing the relationship of venture with the administration right now?
Speaker 3: And is there a repercussion as Elon withdraws and then
Speaker 3: seemingly gets pretty angry at the state of the current
Speaker 3: spending mill or at least the way he sees it
Speaker 3: as a spending bill, they says reconciliation.
Speaker 6: Yeah, well, I mean we're still very kind of near
Speaker 6: in on the start of the administration. We're only what
Speaker 6: five months into things right now. I do think that
Speaker 6: this administration is incredibly communicative with the tech community, with
Speaker 6: the venture community. The channels are open, they're curious, they're
Speaker 6: looking for information.
Speaker 2: Do you have a direct line with President Trump at all?
Speaker 6: There's lots of paths into the White House without without
Speaker 6: without commenting any further on that. But yeah, I think
Speaker 6: I think that there's a tremendous openness to having that
Speaker 6: dialogue a lot of these initiatives, whether you're talking about
Speaker 6: the big beautiful bill. You know, I like what Elon said,
Speaker 6: it's difficult for a bit a bill to be both
Speaker 6: big and beautiful. It can be big or it can
Speaker 6: be beautiful. It can't be both. But you know, I
Speaker 6: think you know there's there's at least receptivity and we'll
Speaker 6: see how some of these big programs, these big plans
Speaker 6: shape over over the next year.
Speaker 5: And the reason Carrie's question is important is you know,
Speaker 5: you were part of the contingent that went to the
Speaker 5: goal for the Middle East with the President in Corporate America.
Speaker 5: Let's end here with a look at the future. After
Speaker 5: you and I were together in Ohio in January, my
Speaker 5: phone just kept ringing from private companies and startups that
Speaker 5: are in the defense technology space. Is there a world
Speaker 5: where andrel and three or four other players exist and
Speaker 5: coexist or is it just anderill and nothing out.
Speaker 6: Well, first of all, I want to say thanks for
Speaker 6: coming to the Arsenal launch in thank You're one of
Speaker 6: the few people X Androl who has even seen the
Speaker 6: site in Ohio, so it was cool to have you out.
Speaker 7: Thanks so much for doing that.
Speaker 6: Yeah, you know, I think categories are tough, right, Like
Speaker 6: there usually isn't such.
Speaker 7: A thing as category investing.
Speaker 6: You know, if you're a social media investor and you
Speaker 6: didn't invest in Facebook, you probably lost money. If you're
Speaker 6: a space investor and you didn't invest in SpaceX, you
Speaker 6: probably lost money. Do I think that there's room for
Speaker 6: a couple of players to make a big entry into
Speaker 6: the defense space. Sure, I don't think there's going to
Speaker 6: be multiple anerles. And that's really our goal is we're
Speaker 6: trying to create a concentrated opportunity to be a next
Speaker 6: generation defense products company that goes out and wins these
Speaker 6: major programs where we're going to have the ability to
Speaker 6: bring software, chops, the you know, autonomy, speed scale manufacturing
Speaker 6: into the defense industry for the first time as a
Speaker 6: new player in a really long time, a.
Speaker 3: New player that is now worth one than thirty billion dollars,
Speaker 3: just double the valuation having raised more than two billion.
Speaker 3: Tracey Humans, it's a joy to have you Androil executive chairman,
Speaker 3: founder's fun partner as well. Now so much more coming
Speaker 3: up about clearly the future of AI. Alphabet CEO, son
Speaker 3: of Pitchye, following his panel at Bloomberg Tech Summit last night,
Speaker 3: talking about actually competition, I was looking at AI.
Speaker 2: This is really big technology.
Speaker 9: You know, there's no doubt to me that three years
Speaker 9: from now there will be a company which will be
Speaker 9: dominant in this AI age, which we don't even know
Speaker 9: the name of today.
Speaker 5: Welcome back to a special edition of Bloomberg Technology Live
Speaker 5: from the Bloomberg Tech Summit.
Speaker 4: Alphabet CEOs and the pitch I.
Speaker 5: Says the company will continue to expand its engineering ranks
Speaker 5: at least into twenty twenty six, emphasizing human talent remains
Speaker 5: key despite AI investments. That was part of the discussion
Speaker 5: with Bloomberg's Emily Chang last night when we kicked off
Speaker 5: the tech.
Speaker 4: Some of here in San Francisco. Here's more of that conversation.
Speaker 9: In twenty twenty five, our capex is seventy five billion dollars, right,
Speaker 9: so we are definitely investing for the long run. But
Speaker 9: you know, it's the same investment which powers businesses from
Speaker 9: search to YouTube to cloud, to workspace, to Android and
Speaker 9: play to way more right and so, and to our
Speaker 9: subscriptions business. We just launched Google AI pro and Ultra
Speaker 9: and you know it's definitely doing well. I mean pleased
Speaker 9: to see the reception. So I think it's such a
Speaker 9: profound technology. I feel the opportunity ahead is bigger than
Speaker 9: the opportunity we had in the text.
Speaker 10: So to double click there, if I may, what specific
Speaker 10: new revenue streams do you see increasing and what revenue
Speaker 10: streams do you see decreasing.
Speaker 9: The growth in cloud like Vertex AI is up forty
Speaker 9: eight in usage on a token basis just in the
Speaker 9: last twelve months, so obviously you know we have billions
Speaker 9: of dollars in providing AI based solutions in AIS and
Speaker 9: infrastructure AI subscriptions.
Speaker 4: So many many new businesses.
Speaker 10: You have over one hundred and eighty thousand employees right now?
Speaker 2: Is it half that In the future.
Speaker 9: I expect we will grow from our current engineering base
Speaker 9: even into next year, right because it allows us to
Speaker 9: do more. I think the opportunity space is also increasing.
Speaker 9: I just view this as making engineers dramatically more productive,
Speaker 9: getting a lot of the mundane aspects out of what
Speaker 9: they do, allowing them to spend on higher value added tasks.
Speaker 9: But that means it's an accelerator.
Speaker 7: People will be able to.
Speaker 9: Do more, which means maybe we'll create new products and
Speaker 9: hence we will need more people, at least in the
Speaker 9: near term.
Speaker 4: To me, it looks like, you know, we will.
Speaker 9: Expand engineering velocity, and that doesn't mean we're constrained in
Speaker 9: what we will do.
Speaker 4: We'll end up doing more as a company as well.
Speaker 10: But in two trials now, judges have said that Google
Speaker 10: is a monopoly in search and partly a monopoly in ads.
Speaker 7: How do you.
Speaker 10: Address the concern that your AI is built on an
Speaker 10: existing domination of search and ads and that this is
Speaker 10: just reinforcing original monopolies.
Speaker 9: First of all, you know, we disagree with the rulings
Speaker 9: and we are in the process of appealing these things. Look,
Speaker 9: if anything, this moment has shown I don't think there's
Speaker 9: anyone here who is using anything they don't want to use.
Speaker 9: You look at the success of chat repd or any
Speaker 9: other product.
Speaker 7: People are literally.
Speaker 9: Have more choice than ever before. The reason people use
Speaker 9: Google is because they want to use it, right, and
Speaker 9: so I think I think we continue to innovate. I
Speaker 9: think choice is good for users, competition is good for
Speaker 9: the world. So that's how I see it.
Speaker 2: You said the remedies proposed are too extreme.
Speaker 10: Would you ever voluntarily break yourself up control your own destiny?
Speaker 9: Compared to what the initial scope of the ruling was,
Speaker 9: some of the proposed solutions are far overreaching. We'll see
Speaker 9: how it plays out.
Speaker 10: I've heard you say a few times that you think
Speaker 10: of AI as an expansionary moment, but so far it
Speaker 10: does seem to be favoring tech giants and well funded
Speaker 10: startups with access to GPUs and data centers and enormous
Speaker 10: amounts of capital, Like, isn't this really concentrating power in
Speaker 10: fewer hands? And is AI just another winner take all game.
Speaker 9: I'm confident there is a company that's going to be
Speaker 9: created with AI, just like when the Internet happened. Many
Speaker 9: years after the Internet happened, googledn't exist. So you know,
Speaker 9: there's no out to me that three years from now
Speaker 9: there'll be a company which will be dominant in this
Speaker 9: AI age, which we don't even know the name of today. Yeah,
Speaker 9: that's the only way things work in the future.
Speaker 3: A confident alphabet CEO sin of pitch. I there along
Speaker 3: with Boomberg's Emily Chang. Right, now, we can talk it
Speaker 3: all through with executive editor Tom Giles, who joins us.
Speaker 3: From all that conversation you were sitting down with Bauz
Speaker 3: from Meta, after that with Sunder, but just going back
Speaker 3: to what Snow was saying around his optimism on jobs.
Speaker 2: Look, today, one of the.
Speaker 3: Most read stories on the NEWBG terminal is Visita Equity
Speaker 3: Partners Robert Smith saying, look at my conference today, sixty
Speaker 3: percent of you are going to need to find new jobs.
Speaker 3: White collar work is going out.
Speaker 4: But keeps going on. And I want to quote, do
Speaker 4: you d just.
Speaker 11: Last week Dario from Ammiday Fromanthropic fifty percent?
Speaker 12: Right.
Speaker 11: Look, the fact is AI is definitely coming for some
Speaker 11: engineering jobs. The number, the percentage of coding that is
Speaker 11: happening from artificial intelligence seems to keep creeping up and
Speaker 11: up and up. Some people would argue that's going to
Speaker 11: put a lot of engineers out of jobs, but as
Speaker 11: Sundar pointed out last night, he thinks what's going to
Speaker 11: happen is it's going to make them more efficient. It's
Speaker 11: going to mean creating more products, bigger companies, bigger businesses,
Speaker 11: and need for more people. Where do you draw that line.
Speaker 11: I mean, we have to encounter as journalists, right when
Speaker 11: are you going to hear the news from the AIS.
Speaker 11: We have to stay a step ahead of and we
Speaker 11: have to stay smarter. And the engineers it's the same thing.
Speaker 11: You have to become more sophisticated in the way you code.
Speaker 7: And that's what Sundar is talking.
Speaker 5: And I guess the news headline was that they will
Speaker 5: keep hiring at least for the next eighteen months or so.
Speaker 11: He fits in twenty twenty six. He didn't want to
Speaker 11: be pinned down into much longer into the future.
Speaker 5: The thing is that Google is so core to the
Speaker 5: new cycle at the moment. That was why it was
Speaker 5: such an important way to kick off Bloomberg Tech summare.
Speaker 5: He made this point that like, look what we're doing
Speaker 5: in our scale, you can't accuse us of being a
Speaker 5: fret to the world existentially because we're also facing all
Speaker 5: of the competition. Some of that competition is going to
Speaker 5: be speaking over the next twelve hours for example.
Speaker 11: Absolutely, you can't say on one hand that we are
Speaker 11: at extinction level threat right at the same time, too big,
Speaker 11: He definitely he came back to the anti trust question
Speaker 11: right the basically the government right now is considering breaking
Speaker 11: up Google. Would he consider breaking up himself? Of course,
Speaker 11: his answer is that is not on the table. He
Speaker 11: thinks that the government is overreaching right now and he
Speaker 11: has to keep sending that message that we are not
Speaker 11: a threat and that there is a lot of choice now.
Speaker 11: I will say that when you come to him and
Speaker 11: say that people are using Ai much more chatbots to
Speaker 11: do their searches, even TikTok to do searches, that actually
Speaker 11: feeds into his argument. That's really beneficial to him to
Speaker 11: know that there is this much competition. The chat GPT
Speaker 11: is out there and people are starting to use it
Speaker 11: for all the things that Google is you usually do
Speaker 11: with Google and perplexity.
Speaker 3: Who's speaking to Shuena little bit later today Shoween KAfari.
Speaker 3: We've also got Showen speaking with the government as well.
Speaker 3: Michael Kratzios, what are some of the conversations going to
Speaker 3: really be pushing forward? Do you think because yesterday you
Speaker 3: got bars Sametta to push forward on this patriotism focus
Speaker 3: on this alignment of Silicon Valley with defense.
Speaker 2: What else came out of that conversation?
Speaker 7: Right? Yeah?
Speaker 11: I mean he pointed out that for many years Silicon
Speaker 11: Valley has said no to working with the Defense Department.
Speaker 11: The pendulum is swinging dramatically. Patriotism silent majority.
Speaker 7: We heard that before in US history.
Speaker 11: You'll recall I'm not sure I've seen the polling that
Speaker 11: shows that that demonstrates that, but I get the sentiment
Speaker 11: behind it. As you talk just now with Trey, I'll
Speaker 11: be talking with him a little bit later. I'm looking
Speaker 11: forward to here on you got to go to sea.
Speaker 7: It looks great.
Speaker 11: I am looking forward to hearing from Luri Mayor Luri
Speaker 11: to hear about the comeback of San Francisco, Is it real?
Speaker 7: Is it lasting?
Speaker 11: And what's ahead for this important city to Silicon Valley.
Speaker 5: We're just getting kiked Off's head Technology Executive Editors Senior
Speaker 5: executive editor, Tom Giles.
Speaker 4: Let's get out to Washington, d C.
Speaker 5: President Donald Trump and Chinese leaders using paying agreeing to
Speaker 5: further trade talks during a phone call today, gloumost Kaylie
Speaker 5: Lyons has all the details and at the center of
Speaker 5: it Rare Earths.
Speaker 2: Yeah, that's right.
Speaker 13: The President said that after this phone call was she
Speaker 13: which lasted about an hour and a half, there should
Speaker 13: be no more questions around the complexity of the rare
Speaker 13: earth's issue. That does still leave us though with some questions,
Speaker 13: as the President did not specify exactly what was agreed
Speaker 13: to on rare earth if China has formally said that
Speaker 13: it will be lifting export restrictions or granting licenses for
Speaker 13: the export of those rare earths to American companies, so
Speaker 13: we're still left with some questions here. China's readout of
Speaker 13: this call has been a bit different. China, in its
Speaker 13: statement also said that President Trump has said that Chinese
Speaker 13: students are welcome in the US, despite the State Department's
Speaker 13: efforts to be revoking some of those visas of Chinese students.
Speaker 13: But the big picture here is that President Trump says
Speaker 13: that this has brought the US and China to a
Speaker 13: better place on trade and that they are going to
Speaker 13: continue conversations which will be a bit broader, remembering the
Speaker 13: first conversations in Geneva, or just the Treasury Secretary Scott
Speaker 13: Vessant with his counterpartner Howard Lutnick, The Commerce Secretary, as
Speaker 13: well as the US Trade Representative Jamison Greer, will be
Speaker 13: involved in the next top at a location that has
Speaker 13: yet to be announced.
Speaker 2: As well as the.
Speaker 3: Time China top of mind Kayley in thirty seconds. Elil
Speaker 3: Musk also top of mind for this big bill.
Speaker 2: Oh absolutely.
Speaker 13: The Speaker of the House was actually planning on talking
Speaker 13: to Elon Musk today as he says he needs he
Speaker 13: wants to see Americans kill this bill, possibly in part
Speaker 13: because it will roll back the seventy five hundred dollars
Speaker 13: EV credit by the end of this year.
Speaker 2: In Tesla, of course, benefits from Matt.
Speaker 3: Caroline Kaylee lines, thank you, welcome back to a very
Speaker 3: special edition of Blue Veg Technology. We are live on
Speaker 3: the Blue Veg Tech Summit right here in San Francisco,
Speaker 3: and Caroline Hi.
Speaker 4: And I'm Ed Ludlow. Meta CTO.
Speaker 5: Andrew Bosworth says that quote the tie have turned in
Speaker 5: Silicon Valley, making it more palatable for the tech industry
Speaker 5: to support the US military's efforts. He sat down to
Speaker 5: discuss that last night with Bloomberg Senior Executive aed Tom Giles.
Speaker 8: I have family members in the Armed Services. I want
Speaker 8: them to have the best equipment available. And I've always
Speaker 8: been a very patriotic American and believe in the importance
Speaker 8: of our role not just inside the nation but globally,
Speaker 8: so there's a much stronger patriotic underpinning than I think
Speaker 8: people give Silicon.
Speaker 7: Valley credit for.
Speaker 8: But taking a step deeper, this is actually a return
Speaker 8: to grace for the Valley, potentially not just from Meta
Speaker 8: but from Google and other companies. The Valley was founded
Speaker 8: on a three way investment between the military, academics, and
Speaker 8: private industry. That was the founding of it. There would
Speaker 8: be no technology if we weren't all tasked with the
Speaker 8: problem of computing naval ballistic trajectories during the first two
Speaker 8: World Wars. Like that is the heart and soul of
Speaker 8: the investment that led to what we are today, and
Speaker 8: that really got severed for a while there. And some
Speaker 8: of that's because of the procurement laws that change in
Speaker 8: the sixties and seventies. Some of that's the Last Supper
Speaker 8: that happened in ninteen eighty five. We ended up just
Speaker 8: kind of going our separate ways, and I think we're
Speaker 8: worse off for it. I think we're spending more money
Speaker 8: for worse technology in the public sector, and I think
Speaker 8: the private sector is not attacking some of the most
Speaker 8: valuable challenges it's for us to solve. And I think
Speaker 8: it's a mismatch.
Speaker 11: You mentioned smartphones earlier. Do you see spectacles headsets as
Speaker 11: a replacement for or a compliment to smartphones.
Speaker 8: We've always talked about the mix reality devices VR devices
Speaker 8: as being kind of a laptop style market. It's like,
Speaker 8: I use this joke a lot, but you know if
Speaker 8: you ever on your phone and you're answering email and
Speaker 8: you're like, no, this is not a phone email. This
Speaker 8: is a laptop email, and you like put your phone down,
Speaker 8: you like upgrade your power, and like, yes, now I
Speaker 8: have all the windows and I will have all my research,
Speaker 8: and it's like this a laptop email. There's like an
Speaker 8: increase in power that comes there that we all recognize
Speaker 8: and they just like know instinctively when you're in what's done.
Speaker 8: The headset should feel like that, it should feel like
Speaker 8: a crazy upgrade, like this is not a laptop email,
Speaker 8: this is a headset email. Just now it's like the
Speaker 8: world is your oyster and you're just moving things through
Speaker 8: the universe. So I think there's a there's a story there.
Speaker 8: Certainly in the limit, I think ar glasses replace smartphones.
Speaker 8: That's a ways off. Smartphones are incredible, and it's not
Speaker 8: just that their great devices, and they're convenient, we're used
Speaker 8: to them. They also have like an incredibly entangled ecosystem
Speaker 8: of software connected to the rest of the world around us.
Speaker 7: That is going to be a very slow to move
Speaker 7: over and a lot of.
Speaker 8: People who aren't going to want to move over because
Speaker 8: it's going to disenfranchise them or disintermediate them. So I
Speaker 8: think I think that'll take a longer journey. The good
Speaker 8: news is they work really well in concert. The platforms
Speaker 8: don't make it easy. Cinder does better than tim But
Speaker 8: the truth is with AI, you've got this obvious use
Speaker 8: case where it just makes sense to have these wearable
Speaker 8: devices even though you also still have a phone. So
Speaker 8: I don't We're not in a place anymore where it's
Speaker 8: like one or the other and you have to pick today.
Speaker 8: They will coexist for a long time.
Speaker 3: Meta CTEO Andrew Bosworth, along with Bloomberg's Tom Giles. Look,
Speaker 3: it's not all about ar blglasses. When you think about
Speaker 3: the future, you also think robotics. For the perfect person
Speaker 3: to discussing with Haggy Johnson, CEO of Agility Robotics, No,
Speaker 3: we are thinking about the next step of humanoids working
Speaker 3: with humans you're already after a year in the job,
Speaker 3: a year with your human EID robots in GXO logistics,
Speaker 3: What are you learning about how difficult it is for
Speaker 3: us to work alongside them.
Speaker 12: Well, the biggest factor to scaling humanoids is safety. So
Speaker 12: still today humanoids need to work inside of a work cell,
Speaker 12: which is a small gate that keeps them out of
Speaker 12: the proximity of humans.
Speaker 7: To really scale, you need to come.
Speaker 12: Outside of the work cell to be able to walk
Speaker 12: down to the loading dock or across a factory floor.
Speaker 12: And we're working on that right now. Our next gen,
Speaker 12: which we will show off before the end of this year,
Speaker 12: will be what's called cooperatively safe. We can be within
Speaker 12: proximity of humans in a safe manner.
Speaker 2: How much is this software dependent rather than just hardware dependent.
Speaker 2: It's a bit of both.
Speaker 12: You have to have a lot of sensors, a lot
Speaker 12: of cameras. Interestingly, unlike humans, robots can see behind them.
Speaker 12: They can see three sixty They're much like electronic vehicles
Speaker 12: in that fashion. But you do need a layer of
Speaker 12: software on top to ensure that nothing ever happens that
Speaker 12: would put a human in harms.
Speaker 5: Way, have you what range of tasks can your robots
Speaker 5: currently perform I guess autonomously literally movements pressures?
Speaker 12: Yeah, so right now, that entry point is moving materials,
Speaker 12: so moving plastic bins and boxes and things like that
Speaker 12: in warehouses. But that is only the entry point. It
Speaker 12: is a multipurpose robot. It can do a number of tasks.
Speaker 12: But this entry point can teach us new skills as
Speaker 12: we learn to do more things in those facilities and
Speaker 12: eventually come outside of those facilities and.
Speaker 2: Into our homes.
Speaker 4: What is agility's core competence?
Speaker 5: You make hardware or are you better at the software components?
Speaker 12: Well, I would say a little bit of balls, but.
Speaker 4: You said that already though.
Speaker 5: For Yeah, I get told every single day at the
Speaker 5: moment when you speak to a robotics company, ask them
Speaker 5: about how good their software team is, how good the
Speaker 5: engineers are, because it has been the limiting factor to progress.
Speaker 12: Yeah, so AI has really supercharged that. We used to
Speaker 12: have to code all the movements of the robot, and
Speaker 12: now with AI we can teach it new skills much
Speaker 12: more quickly. We're actually changing exchanging engineering hours for compute hours,
Speaker 12: and it really shrinks the time and the cost of
Speaker 12: teaching the robot new skills.
Speaker 2: What about supply chain?
Speaker 3: We've got a lot of news about China US relationship today.
Speaker 2: How is it looking for you?
Speaker 12: Well, a couple of things we manufacture right here in
Speaker 12: the United States. Only about one percent of our parts
Speaker 12: come from China, so we're relativetively immune to any of
Speaker 12: the issues that others may be having. The robot was
Speaker 12: just initially built that way and it's been a real
Speaker 12: advantage for us.
Speaker 2: So can you pit us?
Speaker 3: Therefore, we love to put generative AI prowess of China
Speaker 3: versus generative.
Speaker 2: Aipress in the US. What about robotics, he's winning?
Speaker 12: I would say the US is winning. A lot of
Speaker 12: what you see coming out of China today are flashy
Speaker 12: videos demos, not actually on a factory floor like we
Speaker 12: are working eight hour shifts lifting heavy items. That is
Speaker 12: when that's the true test of what a rollback in.
Speaker 5: That's the thing, right, I think the Bloomberg text audience
Speaker 5: really just appreciate understanding the basics. So with the gxodeal,
Speaker 5: in one calendar year, you've moved three hundred thousand items.
Speaker 5: But how many robots is that? How many actions can
Speaker 5: a robot doing a shift? I can't believe you use
Speaker 5: the word shift performer hour stress. Just how does it
Speaker 5: work in practice and give us a sense of scale.
Speaker 12: Sure, so it is an eight hour shif it's just
Speaker 12: a handful of robots that are producing that type of number. Basically,
Speaker 12: the robots can walk in and perform a task. But
Speaker 12: what's interesting about humanoids is that they can perform several tasks.
Speaker 12: So they can do one thing in the morning, something
Speaker 12: else at noon, something else in the evening. Where robots,
Speaker 12: the traditional robots say, a single arm is very specific.
Speaker 12: They do one thing over and over, and they do
Speaker 12: it very well. Humanoids can actually change what they do,
Speaker 12: and now with AI, we can give them commands and
Speaker 12: they can change on a moment's notice.
Speaker 3: The history of agency is so interesting. It came out
Speaker 3: of Oregon State University with thinking at the moment about
Speaker 3: state funding, about funding to science and R and D,
Speaker 3: of talent being able to come in from immigration.
Speaker 2: Are these things simple mind for you?
Speaker 12: Well, we did have early grants from the US and
Speaker 12: it really helped the company get going. So I am
Speaker 12: a huge fan of basic research for US companies. We
Speaker 12: absolutely have to continue to invest both in research and
Speaker 12: in the talent. So we need proper immigration in place
Speaker 12: in order for us to be able to access this
Speaker 12: kind of talent.
Speaker 5: Peggy Johnson, the CEO of Agility Robotic, Welcome back to
Speaker 5: a special edition of Bloomberg Technology. We live from the
Speaker 5: Bloomberg Tech Summer in San Francisco, where AI is top
Speaker 5: of mind. AI's impact on the workforce is already being felt,
Speaker 5: and that's especially true for engineers.
Speaker 4: A partner, Channa Bragado, is.
Speaker 5: The chief Product Officer of Experiences and Devices in Microsoft,
Speaker 5: which is at the forefront of some of these changes.
Speaker 5: He joined us here at Tech summert SF. So, as
Speaker 5: you know, about six months ago, I just did thirty
Speaker 5: days straight of using co pilot on a Windows based laptop.
Speaker 5: I wanted to commit to working out how on.
Speaker 4: Earth you use these tools in the real world.
Speaker 5: Really interesting that I felt within the confines of the laptop,
Speaker 5: I couldn't get out of the laptop onto my smartphone.
Speaker 5: What are you finding six months on and how knowledge
Speaker 5: workers use your use your tech.
Speaker 14: First of all, thank you for having me, and also
Speaker 14: for thank you for like nailing the pronunciation of my name,
Speaker 14: you know, like taking a step back. I think we
Speaker 14: are in this like super early phase of like the
Speaker 14: AI shift. This is like the nineteen ninety five's equivalent
Speaker 14: of the Internet shift. To me, where I see it
Speaker 14: and to me, I think what we are starting to
Speaker 14: see is for knowledge work very clearly, efficiency gains. Right
Speaker 14: for organizations, you're saving millions of dollars of like money
Speaker 14: and time automating workflows, I mean, summarizing documents, meeting notes
Speaker 14: a se.
Speaker 5: Is co pilot just narrowly a tool for knowledge workers
Speaker 5: or are you finally consumers are using an equal measure?
Speaker 14: It's it's it's broad because productivity is not bound by
Speaker 14: the work organizational boundary, right. But I do think that
Speaker 14: actually one of the things that we are seeing where
Speaker 14: the traction is is in efficiency for ourganizations, right, efficiency
Speaker 14: for at the individual level. They imagine having a digital
Speaker 14: assistant at work for every employee, right, which you couldn't
Speaker 14: afford to have before. The thing that we are seeing
Speaker 14: and I'm seeing it with customers talking about it too,
Speaker 14: is that shift between from efficiency to more of effectiveness.
Speaker 2: Meaning look, I mean it's fine, it is great.
Speaker 14: For example, I can't imagine doing a meeting without the
Speaker 14: facilitation by copilot, right. It takes the notes it carries
Speaker 14: action items. It tells if you're going off the rails
Speaker 14: in a discussion, because in meetings that happens all the time.
Speaker 14: But what I am seeing is that for effectiveness, the
Speaker 14: key unlock has been these model advances in deep reasoning,
Speaker 14: meaning it's not just about like faster answers. We launched
Speaker 14: an agent in co pilot called Researcher. Think about it
Speaker 14: as a super smart, intelligent chief of staff in your pocket.
Speaker 14: And so, for example, I had a customer meeting last
Speaker 14: week and this thing went around and kind of like
Speaker 14: scoured the whole web information but also the email from
Speaker 14: three years ago from the CIO of the customer to
Speaker 14: kind of like pointing an issue, said make sure you
Speaker 14: bring that up. I mean, that's the effectiveness. That's like
Speaker 14: superpowers that you didn't have before.
Speaker 3: People are getting s superpowers from other places too, and
Speaker 3: chatgypt enterprise. The interesting nature of your relationship with open
Speaker 3: ai but also them as a competitor.
Speaker 2: Can your customers afford both? Are they affording both?
Speaker 14: I think with open Air, First of all, we have
Speaker 14: a great long term relationship.
Speaker 2: It's a win win relationship.
Speaker 14: We build products on innovative models from open AI. For
Speaker 14: the frontier models. Our customers build agents and you know,
Speaker 14: workflows on and AI apps on top of our Azure
Speaker 14: Open AI service platform.
Speaker 2: The word I do see.
Speaker 14: At Microsoft is for us at least, what AI and
Speaker 14: copilot is about number one, bringing the advanced intelligence right,
Speaker 14: that's table stakes. But number two is making sure that
Speaker 14: it works where you work, right, you're I mean teams
Speaker 14: all day or.
Speaker 5: Just where you work. So right now I'm using this thing.
Speaker 5: This is a smartphone. Various brands are available in the
Speaker 5: future because this is part of your portfolio. Which device
Speaker 5: does Microsoft bet that knowledge workers are actually using for aiols?
Speaker 14: I mean, there's clearly a lot of knowledge work that
Speaker 14: happens on laptops and desktops. But then I think we
Speaker 14: have a mobile app, for example, for them M through
Speaker 14: sixty five copilot, the one that you do use at work.
Speaker 2: But I think the other thing I do want to.
Speaker 14: Come back to is there is a You can't build
Speaker 14: all of these on Jenga blocks, right, you have to
Speaker 14: build this on security, safety, compliance, and governance. And that's
Speaker 14: the thing I hear all the time from customers. In fact,
Speaker 14: the phrase that I use internally is we need to
Speaker 14: innovate at the speed of trust right, which means it's
Speaker 14: an end right. And at Microsoft that's I think of
Speaker 14: as a differentiator, which is how do you innovate, but
Speaker 14: how do you do it at the speed of trust
Speaker 14: with governance.
Speaker 3: I go back to that and though are people having
Speaker 3: copilot and other enterprise gendet FAI offerings right now?
Speaker 14: It's a mix at and I would say it's actually
Speaker 14: a healthy thing right now because again, like think about
Speaker 14: I think of AI tools for employees as a contact sport.
Speaker 14: In fact, I think one of the like you have
Speaker 14: to get in and use this stuff to actually get
Speaker 14: the about challenge is amazing because and in fact, we
Speaker 14: did a study called the work Trend Index, and one
Speaker 14: of the things we found is these class of companies
Speaker 14: we call them frontier firms, and the big distinction there
Speaker 14: is that they're not they're not thinking of AI as
Speaker 14: a snack. It's a main meal right for their employees.
Speaker 14: It's an org wide adoption. It's not this thing off
Speaker 14: to the side. They're using multiple tools, they're experimenting with things,
Speaker 14: but at the end of the end of the day,
Speaker 14: they are also looking at what's the roy where are
Speaker 14: they getting the governance and the security and as well
Speaker 14: as kind of the latest access to intelligence. And that's
Speaker 14: how I think about like where Microsoft.
Speaker 2: Is playing, Wow, it's a great contact sport.
Speaker 3: I can't play rugby anymore based on contact sport. Different
Speaker 3: nature a pan Chinavagata, which is Microsoft Chief Product Officer
Speaker 3: of Experiences and Devices. Now we've got planning coming up
Speaker 3: turning to the battle of contact sport for chap pot
Speaker 3: dominance into a business.
Speaker 2: Look, we're talking to the co founder of lm Arena.
Speaker 2: That's an exposit Revie Technology