WEBVTT - US Regulators Investigate Tesla Door Handles 0:00:02.520 --> 0:00:12.879 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.880 --> 0:00:16.720 from coast to coast, with Caroline Hide in New York 0:00:16.960 --> 0:00:20.680 and Ed Lovelow in Sent Francisco. 0:00:22.239 --> 0:00:24.000 This is Bloomberg Tech coming up. 0:00:24.079 --> 0:00:28.200 US auto safety regulators probe Tesla over issues with door 0:00:28.200 --> 0:00:31.640 handles on certain vehicles following a Bloomberg report. 0:00:31.880 --> 0:00:34.800 Plus, Google will invest close to seven billion dollars over 0:00:34.840 --> 0:00:38.680 two years in the UK to help build its AI economy, and. 0:00:38.720 --> 0:00:41.959 Service now expands its presence in Florida with a new 0:00:42.000 --> 0:00:44.839 regional hub. We speak with the CEO and with the 0:00:44.920 --> 0:00:45.720 developer of the. 0:00:45.720 --> 0:00:48.239 Site, but first we check out what's happening in the markets. 0:00:48.479 --> 0:00:49.920 We are so close to ten. 0:00:49.760 --> 0:00:52.400 Straight days of gains on the NASA one hundred. There's 0:00:52.400 --> 0:00:56.080 a blip. We pull just slightly into the negative territory. 0:00:56.120 --> 0:00:58.360 And then as that one hundred only slightly ed, what 0:00:58.560 --> 0:01:01.400 is it? Thirteen points? Much anxiety as we go into 0:01:01.440 --> 0:01:04.720 the federal reserve policy. The decision comes tomorrow, will we 0:01:04.800 --> 0:01:07.560 see a cut? But what about the future direction? As 0:01:07.640 --> 0:01:10.959 those retail sales look pretty buoyant, can they be as 0:01:11.000 --> 0:01:12.800 dubvish in the longer term? But Ed, you're looking at 0:01:12.840 --> 0:01:14.440 perhaps what moves the markets on. 0:01:14.400 --> 0:01:15.080 This exact day. 0:01:15.840 --> 0:01:17.360 Yeah, let's go to our top story. 0:01:17.520 --> 0:01:21.479 US auto safety regulators opened up an investigation into whether 0:01:21.600 --> 0:01:25.839 some Tesla vehicle doors are defective. This comes days after 0:01:25.840 --> 0:01:29.920 a Bloomberg investigation uncovered a series of incidents in which 0:01:29.959 --> 0:01:33.160 people were injured or died after they were unable to 0:01:33.240 --> 0:01:38.080 open doors when Tesla's lost power, particularly after crashes. I 0:01:38.080 --> 0:01:41.280 would note the stock is higher in this Tuesday session, 0:01:41.319 --> 0:01:45.240 up almost two percent. Bloomberg's Global Auto's editor Craig Trudell 0:01:45.400 --> 0:01:48.840 joins us from London. Let's start with the investigation, which 0:01:48.960 --> 0:01:52.840 is a Nitzer investigation. Craig explain the parameters of what 0:01:52.960 --> 0:01:55.960 Nitza's looking at and the scope of what they're looking at. 0:01:57.360 --> 0:02:01.560 Yeah, it's interesting, you know, the sort of headline information 0:02:01.640 --> 0:02:03.760 at the top of this document that it's an issue 0:02:03.760 --> 0:02:08.359 today refers to a pretty narrow, narrow set of vehicles. 0:02:08.400 --> 0:02:11.160 This is the twenty twenty one model Y. It's about 0:02:11.160 --> 0:02:15.160 one hundred and seventy thousand cars. But the issue here 0:02:15.440 --> 0:02:18.520 has the potential to be much broader because what NITSA 0:02:18.560 --> 0:02:23.280 is looking at is Tesla's approach to its door design 0:02:23.760 --> 0:02:26.400 and the fact that its doors are reliant on. 0:02:26.360 --> 0:02:28.080 Electrical power in order to work. 0:02:28.120 --> 0:02:31.160 That is something that applies to all Tesla's going back 0:02:31.200 --> 0:02:34.360 to the model S that's been in production since twenty twelve. 0:02:35.120 --> 0:02:39.640 So while Tesla is you know, on the surface, it 0:02:39.680 --> 0:02:43.240 looks like this is a single model, a single model year, 0:02:43.680 --> 0:02:46.200 this has the potential to be something much broader. You 0:02:46.240 --> 0:02:50.720 think back to, you know, a precedent of an autopilot 0:02:50.880 --> 0:02:54.800 investigation where they were narrowly looking at how that system 0:02:54.919 --> 0:03:01.440 handled you know, certain parameters like how they werenavigating emergency 0:03:01.520 --> 0:03:05.359 vehicles and you know, running into say, fire trucks or 0:03:05.400 --> 0:03:09.840 police cars. That didn't just stayed narrowly focused on that 0:03:09.919 --> 0:03:12.440 one issue. They had to recall autopilot. 0:03:13.160 --> 0:03:13.440 You know. 0:03:14.960 --> 0:03:19.480 Overall, right, it affected their vehicles in a much broader way. 0:03:19.800 --> 0:03:22.480 It has there is some potential for the same to 0:03:22.480 --> 0:03:23.919 play out here with this model. 0:03:23.960 --> 0:03:26.360 Why why investigation. 0:03:26.200 --> 0:03:29.560 Craig China, top regulators there have been looking at these 0:03:29.600 --> 0:03:33.600 concealed handles before. Already Europe has been thinking a lot 0:03:33.639 --> 0:03:35.640 about accidents in such cases. 0:03:36.000 --> 0:03:37.640 Is it just a Tesler design? 0:03:37.880 --> 0:03:40.160 And more broadly, how are we thinking about the US 0:03:40.280 --> 0:03:42.000 tackling it versus other regions? 0:03:43.520 --> 0:03:47.040 I think it's interesting because this is a design that, 0:03:47.240 --> 0:03:51.560 for all of its potential flaws, at least to some degree, 0:03:51.600 --> 0:03:55.040 has been embraced and sort of copied by other manufacturers. 0:03:55.040 --> 0:03:56.800 And that's something that we included in our. 0:03:56.680 --> 0:04:00.800 Report last week that a lot of electric vehicle you know, 0:04:01.200 --> 0:04:04.320 rivals or would be rivals to Tesla that have come 0:04:04.360 --> 0:04:07.240 onto the market over the years have kind of embraced 0:04:07.240 --> 0:04:10.600 this you know, flush door handle design, essentially kind of 0:04:10.640 --> 0:04:13.720 innovating a door handle that maybe didn't need to be innovated, 0:04:13.760 --> 0:04:16.680 and that is something that will be you know, very 0:04:16.680 --> 0:04:19.960 interesting for us to watch here because we also included 0:04:20.000 --> 0:04:22.479 in last week's report mentioned of the fact that we've 0:04:22.480 --> 0:04:26.000 already seen recalls related to the safety of door handles 0:04:26.040 --> 0:04:29.880 in for instance, the Mustang Machie, the Ford SUV that 0:04:30.600 --> 0:04:33.560 is taking on the Model Y. So this has the 0:04:33.600 --> 0:04:37.440 potential to be not only a broader investigation for Tesla, 0:04:37.480 --> 0:04:40.279 but also something that knits A takes a closer look 0:04:40.279 --> 0:04:44.479 at across all manufacturers that have taken after Tesla from 0:04:44.480 --> 0:04:45.800 this design perspective. 0:04:46.960 --> 0:04:50.640 After NITSA confirmed its investigation this morning, Tesla has not 0:04:50.720 --> 0:04:53.240 responded to request a comment from Bloomberg, but We just 0:04:53.279 --> 0:04:56.160 showed Craig while you were speaking the comments of Tesla's 0:04:56.160 --> 0:04:59.159 board chair Robin Denholm, which will remember Karen and I 0:04:59.240 --> 0:05:02.160 are posed too after our original report has been in 0:05:02.240 --> 0:05:03.839 vers Cray Trudell out of London. 0:05:03.880 --> 0:05:04.640 Thank you very much. 0:05:04.720 --> 0:05:07.720 Going back to the UK, Google will invest five billion 0:05:07.760 --> 0:05:10.360 dollars that's six point five billion pounds storry, that's six 0:05:10.440 --> 0:05:13.520 point eight billion dollars over two years into the UK 0:05:13.720 --> 0:05:16.839 to help build an AI economy in the country. The 0:05:16.839 --> 0:05:19.880 tech giant disclosed the plan just as President Trump is 0:05:19.880 --> 0:05:23.480 set to announce billions of dollars of economic deals during 0:05:23.480 --> 0:05:25.800 his visit to the UK this week. He's expected to 0:05:25.800 --> 0:05:29.440 travel with several US tech leaders, including in Nvidio CEO 0:05:29.520 --> 0:05:33.440 Jensen Wang and open Ai CEO Sam Altman. Bloomberg's UK 0:05:33.520 --> 0:05:37.120 correspondent Lizzie Burden joins us and Lizzie give us the 0:05:37.160 --> 0:05:39.360 need to know on this alphabet deal and what else 0:05:39.360 --> 0:05:40.200 we're looking forward to. 0:05:43.040 --> 0:05:45.400 Well, as you both know, this alphabet deal is a 0:05:45.520 --> 0:05:49.480 drop in the ocean in terms of the capex of alphabets, 0:05:49.520 --> 0:05:51.799 but it's a big deal for the UK. It's something 0:05:51.839 --> 0:05:55.160 that's been long in the making. The UK tech Secretary 0:05:55.480 --> 0:05:57.840 is the former one. Peter Kyle is now the UK 0:05:57.960 --> 0:06:01.400 Business and Trade Secretary, perhaps as a sign of just 0:06:01.480 --> 0:06:04.640 how important tech is to the business landscape here in 0:06:04.680 --> 0:06:05.200 the UK. 0:06:05.520 --> 0:06:07.880 But as you say, it's part of a broader suite. 0:06:07.560 --> 0:06:10.360 Of economic deals that we're expecting the President to announce 0:06:10.640 --> 0:06:14.520 here on his visit to Britain. We're expecting ten billion 0:06:14.680 --> 0:06:17.839 pounds worth of deals to be announced, including a defense 0:06:17.920 --> 0:06:23.640 tech cooperation agreement, also partnership on nuclear also bringing together 0:06:23.680 --> 0:06:26.360 the economic hubs on both sides of the Atlantics. There's 0:06:26.360 --> 0:06:28.960 a lot of stake here for Keir Starmer. It's an 0:06:29.040 --> 0:06:32.320 unprecedented second state visit for Donald Trump here in Windsor 0:06:32.440 --> 0:06:35.640 this eleventh century castle behind me. But I have to 0:06:35.680 --> 0:06:39.520 say this is the worst possible timing for Keir Starmer. 0:06:39.560 --> 0:06:44.360 He's just lost his UK Ambassador to the US, Peter Mandelson, 0:06:44.440 --> 0:06:48.279 over his links to Jeffrey Epstein. Epstein of course links 0:06:48.360 --> 0:06:51.360 to the King himself via his brother Prince Andrew, and 0:06:51.440 --> 0:06:53.520 to Donald Trump. So there are going to be some 0:06:53.720 --> 0:06:57.080 very very awkward moments, not least at the press conference 0:06:57.120 --> 0:06:59.359 at the end of the trip. For the UK, the 0:06:59.440 --> 0:07:03.760 point will be to not look like we're appeasing the President, 0:07:04.160 --> 0:07:08.120 but also to make sure that something substantive comes out 0:07:08.160 --> 0:07:11.840 from this visit, because ultimately the UK is playing its 0:07:11.880 --> 0:07:13.360 age by deploying the King. 0:07:14.040 --> 0:07:18.640 Bloomberg's Lizzie Burden from Windsor Castle. We appreciated. Let's return 0:07:18.880 --> 0:07:22.040 to the tech deals that we're expecting to come out 0:07:22.040 --> 0:07:25.080 of that visit and the focus on AI with Leeds Hue, 0:07:25.240 --> 0:07:29.560 chief Investment Officer for Thematic Innovation Equities and Alliance Burnsteam 0:07:29.840 --> 0:07:30.720 and more. 0:07:30.920 --> 0:07:32.560 This fits into the whole. 0:07:32.560 --> 0:07:36.920 Array of conversation we keep having about the need for 0:07:37.000 --> 0:07:39.239 investment in air. We just think back to Oracle's numbers 0:07:39.280 --> 0:07:41.520 last week and how much they were showing that they've 0:07:41.520 --> 0:07:44.560 got this backlog building. We've got all the hyperscalers trying 0:07:44.600 --> 0:07:47.080 to build out, Alphabet's looking to build a data center 0:07:47.120 --> 0:07:50.200 in the UK. Are we seeing that continuing to go 0:07:50.280 --> 0:07:51.640 up into the right at the speed that we see 0:07:51.640 --> 0:07:53.680 at the moment, Well. 0:07:54.160 --> 0:07:56.520 I think all we're seeing is actually we're hitting an 0:07:56.560 --> 0:08:01.600 inflection point in inferencing. So you look, it's just broadly speaking, 0:08:01.680 --> 0:08:03.760 not just those big numbers that you quoted, but also 0:08:03.840 --> 0:08:07.400 if you look the AI trend and the adoption and 0:08:07.520 --> 0:08:10.400 where we're seeing the step function and numbers is broadening out, 0:08:10.520 --> 0:08:12.480 so it's a broader set of companies that are starting 0:08:12.520 --> 0:08:15.880 to benefit, whether it's the networking companies or we're seeing 0:08:15.960 --> 0:08:19.480 it in memory pricing, in storage, in hardware. So those 0:08:19.480 --> 0:08:21.600 are all signs that you know, in terms of the 0:08:21.600 --> 0:08:25.520 AI adoption, the inferencing at the edge, things are actually happening, 0:08:25.880 --> 0:08:29.040 and to me, this is a very positive sign. That 0:08:29.240 --> 0:08:32.760 means the real adoption which will drive continued build So 0:08:33.280 --> 0:08:37.679 we think about it tech innovation generally, we take step functions, right, 0:08:37.720 --> 0:08:39.480 We kind of chuck along and then all of a 0:08:39.520 --> 0:08:42.200 sudden there's an inflection point and things really start to 0:08:42.200 --> 0:08:44.600 take off. And I really think we are still in 0:08:44.640 --> 0:08:47.800 the early innings of that happening, and supported by all 0:08:47.840 --> 0:08:50.320 the evidence that we have seen at the micro level 0:08:50.360 --> 0:08:52.840 from the company as well as these mega trends that 0:08:52.880 --> 0:08:55.640 you're seeing at you know, the big macro level. 0:08:56.240 --> 0:08:59.120 The step function has already been shown in the valuations 0:08:59.120 --> 0:09:01.040 of companies. We just want to bring you some sound 0:09:01.120 --> 0:09:04.040 actually from a key investor who manages money for Peter 0:09:04.160 --> 0:09:07.600 til no Less. We've been talking about how we've been 0:09:07.600 --> 0:09:09.480 looking at maybe a bubble growing an ai. 0:09:09.640 --> 0:09:10.280 Just take a listen. 0:09:12.120 --> 0:09:14.199 The AI bubble is real, and I don't take enough 0:09:14.240 --> 0:09:17.040 people talk about it. And if you were able to 0:09:17.080 --> 0:09:19.600 be an early investor in open ai, then congratulations, that's 0:09:19.600 --> 0:09:22.080 a great place to be. If you're coming and investing 0:09:22.480 --> 0:09:24.640 at open ai at a five hundred million dollar valuation, 0:09:25.040 --> 0:09:26.120 I honestly. 0:09:25.679 --> 0:09:26.480 Don't know about that. 0:09:27.040 --> 0:09:30.480 So I think that is the more dominant topic that 0:09:30.679 --> 0:09:32.920 is going on, at least within Silicon Valley circles. It 0:09:32.920 --> 0:09:35.440 doesn't get talked about enough. And how it chicks out, 0:09:35.880 --> 0:09:39.000 it's going to be fascinating because if you got in early, fantastic. 0:09:39.000 --> 0:09:42.080 If you're getting in today, I'm not assured. 0:09:42.760 --> 0:09:46.400 Long time sort of managing director for the private wealth 0:09:46.440 --> 0:09:50.800 of Peter Teel, but also with AZVC founder Jack Selby, 0:09:50.800 --> 0:09:56.599 there are you worried about any exuberance already reflecting evaluations 0:09:56.640 --> 0:09:58.240 even though we are at this inflection point. 0:09:59.000 --> 0:10:02.480 I think that brings it interesting point. Valuation is important, 0:10:03.720 --> 0:10:06.400 and we always said valuation is important, but it's only 0:10:06.480 --> 0:10:10.800 related to interestal customer revisions. So not all companies are 0:10:10.800 --> 0:10:12.720 going to succeed. There will be a lot of company 0:10:12.760 --> 0:10:15.280 that simply put the name in their press release, and 0:10:15.320 --> 0:10:17.520 those are the ones that we say, oh, that's AI too. 0:10:17.920 --> 0:10:19.960 So it actually brings back to we have to do 0:10:20.040 --> 0:10:23.080 our due diligence. Some of them will succeed, many of 0:10:23.080 --> 0:10:25.240 them will fail. Even if you look back to the 0:10:25.240 --> 0:10:28.520 web one dot right, there were so thousands of companies, 0:10:28.840 --> 0:10:33.600 but really a few survived and those are the leaders today. 0:10:33.920 --> 0:10:38.000 And as we look forward, I would say AI is transformative. 0:10:38.160 --> 0:10:41.559 We are early and leadership is being redefined. And that's 0:10:41.559 --> 0:10:44.320 why all the companies are rushing out to spend because 0:10:44.640 --> 0:10:48.200 it's as defensive as it is offensive. But we will 0:10:48.240 --> 0:10:51.040 find new leaders but in the meantime we'll also have 0:10:51.120 --> 0:10:53.640 to be prudent. Not all of them are going to succeed. 0:10:54.080 --> 0:10:57.040 And in fact, when you redefine the future of leadership, 0:10:57.200 --> 0:10:59.640 when there's a paradigm change, some of the things that 0:10:59.640 --> 0:11:02.319 we use to think that work may not work. So 0:11:02.360 --> 0:11:05.400 what is perceived to be cheap could also be more 0:11:05.400 --> 0:11:08.200 expensive than you expect it. So again brings back to 0:11:08.440 --> 0:11:10.920 we've got to do our homework. It's easy to call 0:11:11.080 --> 0:11:15.800 everything a bubble, but underneath that, actually there are opportunities, 0:11:16.000 --> 0:11:19.560 but they are also you know, prudence is absolutely important. 0:11:20.840 --> 0:11:24.360 Lay the other counterpoint to a bubble argument is that 0:11:24.400 --> 0:11:29.520 different geographies are moving at different speeds. This week exemplifies that. 0:11:29.559 --> 0:11:33.320 Does it not that you see earlier announcements for a 0:11:33.360 --> 0:11:37.400 buildout of infrastructure in the United Kingdom given that we 0:11:37.520 --> 0:11:41.080 haven't seen the same level of activity in Western Europe 0:11:41.160 --> 0:11:44.880 the United Kingdom? Does the Lions burnsteam change its attitude 0:11:44.920 --> 0:11:49.880 towards British equities, UK equities, European equities in that AI 0:11:49.920 --> 0:11:51.319 infrastructure supply chain. 0:11:52.480 --> 0:11:56.320 I think AI is a global phenomenon, but it's more 0:11:56.360 --> 0:12:00.360 so just tech. Innovation has become a crucial element in 0:12:00.840 --> 0:12:04.880 national success. So it is something that we watch closely. 0:12:05.280 --> 0:12:08.479 And I think in terms of each country the adoption 0:12:08.679 --> 0:12:12.520 of AI, it reflects the readiness of the infrastructure, the 0:12:12.559 --> 0:12:17.000 readiness of the government, But oftentimes it ultimately comes down 0:12:17.080 --> 0:12:22.040 to a private public together initiative, and there will be opportunities. 0:12:22.080 --> 0:12:26.160 We've seen sovereign being a big driver for spend and 0:12:26.240 --> 0:12:29.480 I expect to see that continue going forward. And I 0:12:29.520 --> 0:12:32.160 also think each country will take a very different approach 0:12:32.520 --> 0:12:37.120 because the budget is different, the willingness is different. 0:12:37.840 --> 0:12:41.640 Lay very quickly, how close are you tracking private markets 0:12:41.640 --> 0:12:43.439 and private companies that are active here? 0:12:43.960 --> 0:12:47.720 It's very very important for us because a big part 0:12:47.720 --> 0:12:50.600 of the AI adoptions is happening in the private market. 0:12:50.840 --> 0:12:51.400 And now to. 0:12:51.400 --> 0:12:53.960 Mention, if you look at these hundreds of billions of 0:12:53.960 --> 0:12:56.559 dollars they need to be financed. A big part of 0:12:56.600 --> 0:13:00.720 the financing is being done on the private side, monitoring 0:13:00.760 --> 0:13:04.200 that trend very closely, both on the demand side and 0:13:04.400 --> 0:13:07.360 in terms of financing which support the supply side. 0:13:08.600 --> 0:13:10.640 Late of alien spurn seen. Great to have you back 0:13:10.640 --> 0:13:12.880 on the program, Thank you very much. Now coming up, 0:13:13.160 --> 0:13:17.000 the CEO of Service Now and developer Related Ross joins 0:13:17.040 --> 0:13:21.040 us to discuss efforts to turn West Palm Beach into 0:13:21.040 --> 0:13:21.760 an AI hub. 0:13:22.000 --> 0:13:22.800 Carry what are you looking at? 0:13:22.920 --> 0:13:25.040 I'm actually still looking at those valuations on the publicly 0:13:25.080 --> 0:13:27.880 traded side. Oracle, I mean key player when it comes 0:13:27.920 --> 0:13:30.160 to AI infrastructure cours up one and a half percent. 0:13:30.520 --> 0:13:32.280 This is on the back of its earnings last week, 0:13:32.320 --> 0:13:35.080 but also as the narrative around TikTok continues to unfold. 0:13:35.320 --> 0:13:38.520 Will they remain a key cloud provider, an infrastructure provider? 0:13:38.520 --> 0:13:40.520 Could they even take a necty stake for at one 0:13:40.520 --> 0:13:42.640 point se percent? This is Broomberg Tech. 0:13:56.200 --> 0:13:59.400 Service Now is expanding its presence in Florida with a 0:13:59.440 --> 0:14:03.520 new regional innovation hub, an AI Institute in West Palm Beach. 0:14:03.559 --> 0:14:06.679 The developer of the site is Related Ross, run by 0:14:06.720 --> 0:14:09.760 Stephen Ross. He's known for the Hudson Yards redevelopment project 0:14:09.800 --> 0:14:13.199 and of course ownership of the Miami Dolphins. Stephen Ross 0:14:13.200 --> 0:14:17.280 and Service Now CEO Bill McDermott join us now, gentlemen, 0:14:17.320 --> 0:14:20.680 Good morning. Thank you for joining us here on Bloombo Tech. Bill, 0:14:20.720 --> 0:14:22.920 it's great to have you back on. Start with the 0:14:22.960 --> 0:14:26.800 Service Now piece. You know, in this environment, Bill, where 0:14:26.800 --> 0:14:29.920 there's such a micro focus on the talent in AI 0:14:30.680 --> 0:14:35.360 and where companies are spending resources, why does this position 0:14:35.520 --> 0:14:38.320 Service Now better to have this footprint in Florida. 0:14:39.840 --> 0:14:45.040 Well, there's no artificial intelligence without human intelligence, said, and 0:14:45.080 --> 0:14:48.080 there's no leader that can develop a project and a 0:14:48.160 --> 0:14:52.040 dream are better than Stephen Ross. And you mentioned the 0:14:52.120 --> 0:14:54.800 Hudson Yards, but he also did the Time Warner Center. 0:14:55.200 --> 0:14:57.000 And we've been friends for a long time. And I 0:14:57.000 --> 0:14:59.600 always felt the trust was the ultimate human currency and 0:14:59.640 --> 0:15:02.880 it's still is. And I believed in his dream and 0:15:02.960 --> 0:15:07.120 what I see happening here is we're building an AI institute, 0:15:07.400 --> 0:15:09.640 and in this institute, we're going to have the most 0:15:09.680 --> 0:15:12.480 innovative engineers in the world. We're going to be able 0:15:12.480 --> 0:15:16.320 to prototype solutions for the public and private sector at 0:15:16.360 --> 0:15:18.920 record pace, and then we're going to move those solutions 0:15:18.920 --> 0:15:22.920 out into the market. We're also creating knowledge university, and 0:15:22.920 --> 0:15:24.680 we're going to put the flag right here in West 0:15:24.680 --> 0:15:29.440 Palm Beach to rise up three million people in our 0:15:29.480 --> 0:15:33.080 economy to the AI world so they can get the 0:15:33.120 --> 0:15:37.480 better paying jobs, the creative jobs where only humans can 0:15:37.520 --> 0:15:41.520 really excel. And I underscore we really believe it's all 0:15:41.560 --> 0:15:44.800 about putting AI to work for people, because we're a 0:15:44.880 --> 0:15:47.800 job creator and we believe that AI has to be 0:15:47.920 --> 0:15:50.840 in service to people, and right in West Palm Beach 0:15:50.880 --> 0:15:51.880 we're role modeling that. 0:15:52.960 --> 0:15:55.320 Mister Ross, you have a vision that West Palm Beach 0:15:55.360 --> 0:15:58.960 becomes an AI hub more than just service. Now, how 0:15:59.000 --> 0:16:02.480 difficult is it to vince the technology industry of your vision? 0:16:03.040 --> 0:16:06.480 And why West Palm Beach, Well. 0:16:06.400 --> 0:16:11.000 I mean West Palm Beach is really because of Florida 0:16:11.120 --> 0:16:13.920 being the great business state it is, and knowing that 0:16:14.000 --> 0:16:16.840 South Florida is different than the rest of Florida and 0:16:16.880 --> 0:16:21.560 it's really poised to growth and attract jobs. It's never 0:16:21.680 --> 0:16:24.880 done that before. It's always been second homes, you know, 0:16:24.920 --> 0:16:28.720 the second home to all South America, if you will. 0:16:29.240 --> 0:16:33.280 But right now, the resources of Florida, there's not a 0:16:33.320 --> 0:16:36.800 better business state. And when you look and see where 0:16:36.840 --> 0:16:40.240 people are going in the change that's occurring in this country, 0:16:40.560 --> 0:16:43.520 there's no place better positioned. So we had to really 0:16:44.080 --> 0:16:47.960 put it together to bring those things that Florida didn't 0:16:48.000 --> 0:16:51.440 have to attract business. And that's what we've been concentrating on. 0:16:51.920 --> 0:16:56.360 And fortunately now I mean Bill and his vision which 0:16:56.400 --> 0:16:59.840 is second to none. Really saw, at least in our opinion, 0:17:00.000 --> 0:17:05.199 and I'll take that most people's opinion, but saw the 0:17:05.280 --> 0:17:09.240 possibilities and how South Florida was really different than any 0:17:09.240 --> 0:17:11.879 other place in the country. There's not a better business 0:17:11.920 --> 0:17:15.640 state in Florida to start with. So we're very fortunate. 0:17:15.880 --> 0:17:18.520 Bill eight hundred and fifty jobs over the next five years, 0:17:18.640 --> 0:17:21.520 talking about one point eight billion dollars in economic impact. 0:17:21.960 --> 0:17:27.080 You're big on training and training people with service now. 0:17:27.080 --> 0:17:29.200 But will some of your employees move over? How much 0:17:29.200 --> 0:17:30.560 are they wanting to come to the Gold Coast? 0:17:31.880 --> 0:17:34.960 I would say we'll have a twenty percent of our 0:17:35.000 --> 0:17:39.919 workforce likely relocate. The demand to do that has been unbelievable. 0:17:40.280 --> 0:17:43.199 And I keep reminding people the office gets completed in 0:17:43.240 --> 0:17:46.760 twenty twenty seven, so just relax. But the demand is there. 0:17:47.000 --> 0:17:49.000 I think it'll be eighty percent net new job. 0:17:49.040 --> 0:17:49.680 So you look at. 0:17:49.600 --> 0:17:54.520 Florida, amazing universities across Florida, look at our veterans. We're 0:17:54.520 --> 0:17:57.919 going to cross train our veterans on our open AI 0:17:58.280 --> 0:18:01.040 opportunity and they're going to get excited and this is 0:18:01.080 --> 0:18:02.800 going to be a great place for them to grow 0:18:02.840 --> 0:18:05.760 and prosper people that want to switch jobs and go 0:18:05.840 --> 0:18:09.119 into this industry because it's flourishing. You know, the jobs 0:18:09.119 --> 0:18:12.680 are going to get created in tech companies like service Now, 0:18:12.720 --> 0:18:16.520 and we keep hiring, We're growing, we're hiring, we're prospering 0:18:16.840 --> 0:18:19.080 because the innovation is second to none. And you know 0:18:19.200 --> 0:18:21.920 something you know that's very well Carolina and ed. This 0:18:22.040 --> 0:18:26.520 platform connects to every cloud, it connects to every learning 0:18:27.000 --> 0:18:30.000 and every AI model, and it connects. 0:18:29.600 --> 0:18:30.679 To every data source. 0:18:31.040 --> 0:18:34.800 So this will be the AI platform for business transformation. 0:18:35.280 --> 0:18:37.359 And the opportunity has never been greater than it is 0:18:37.440 --> 0:18:39.399 right now. And I'm excited to do this with my 0:18:39.440 --> 0:18:43.640 great friend Steve and really really grow the company, especially 0:18:43.880 --> 0:18:46.760 in West Palm Beach for the great state of Florida, 0:18:46.800 --> 0:18:51.320 and I want to say Governor DeSantis, Mayor James Stephen Ross, 0:18:51.400 --> 0:18:53.960 all of us work very hard behind the scenes to 0:18:54.040 --> 0:18:55.680 make this moment a reality. 0:18:56.320 --> 0:19:01.000 Stephen, that reality is mixed use residential, retail, office properties 0:19:01.000 --> 0:19:03.200 in this particular focus. 0:19:03.000 --> 0:19:04.320 What about data centers? 0:19:04.400 --> 0:19:06.320 Are you thinking about the future of Florida there? I 0:19:06.359 --> 0:19:08.080 know very much West Palm Beach is a place to 0:19:08.119 --> 0:19:10.800 live and to thrive. But where will your opportunities go 0:19:10.840 --> 0:19:12.159 next when it comes to technology. 0:19:13.560 --> 0:19:16.280 Well, first of all, all we're just starting and really 0:19:16.320 --> 0:19:19.960 had to really develop the base for them to see 0:19:19.960 --> 0:19:23.840 the opportunities here. So we really concentrated on bringing great 0:19:23.960 --> 0:19:28.640 universities like Vanderbilt that are coming here with their business engineering, 0:19:29.480 --> 0:19:33.560 tech with schools, and then we had to bring in 0:19:33.600 --> 0:19:36.479 a hospital. We have Cleveland Clinic, and so we're bringing 0:19:36.520 --> 0:19:39.840 all those things that are necessary K through twelve education 0:19:40.320 --> 0:19:43.480 to attract companies. And that's what we've been concentrating on 0:19:43.560 --> 0:19:45.960 and working with the city and the county and the 0:19:46.040 --> 0:19:49.199 state that will really make this a place where companies 0:19:49.320 --> 0:19:52.920 really want to relocate because they can attract the best talent. 0:19:54.960 --> 0:19:56.520 Mister Ross, thank you for that Bill, I think a 0:19:56.640 --> 0:19:59.080 very reasonable question that your employees are going to have 0:19:59.520 --> 0:20:01.399 is whether the you yourself are going to make the 0:20:01.440 --> 0:20:04.359 move to Florida and other members of leadership will make 0:20:04.400 --> 0:20:07.560 the move if you believe so much in this vision 0:20:07.560 --> 0:20:09.280 of the future for West Palm Beach. 0:20:10.520 --> 0:20:12.840 Well, you have to remember we have a very large 0:20:12.880 --> 0:20:15.639 commitment to the state of California where we started the 0:20:15.680 --> 0:20:19.720 company in both San Diego and Santa Clara, California, which 0:20:19.720 --> 0:20:23.480 is where I'm based. But we will have executive leaders 0:20:23.560 --> 0:20:27.280 on the top management team that will be domicile here 0:20:27.320 --> 0:20:29.840 in West Palm Beach and will be part of this 0:20:29.960 --> 0:20:33.160 amazing revolution. And I will spend a lot of time 0:20:34.320 --> 0:20:37.800 the time, the discretionary time that I can here because 0:20:38.000 --> 0:20:42.320 I really want people to know we planted a flag today. 0:20:42.800 --> 0:20:45.440 This is a flag of opportunity, a flag of growth, 0:20:45.800 --> 0:20:49.040 and leadership starts at the top. And I've always believed 0:20:49.080 --> 0:20:50.760 that the true measure of a leader is not what 0:20:50.800 --> 0:20:52.639 you take from this world, is what you give it. 0:20:52.960 --> 0:20:55.720 And today's service now gave it a lot. We came 0:20:55.760 --> 0:20:59.600 in here and Kelly, who runs Palm Beach County Business Development, 0:20:59.680 --> 0:21:03.800 set on stage. This is the biggest corporate move into 0:21:03.840 --> 0:21:07.040 this area in Palm Beach County in the last thirty years. 0:21:07.240 --> 0:21:09.480 I'm super proud of that, and i want to make 0:21:09.520 --> 0:21:12.520 this a stunning success. So I'll be where I need 0:21:12.560 --> 0:21:14.920 to be, the leadership team will be where they need 0:21:14.960 --> 0:21:17.119 to be. But the main thing is to build a 0:21:17.160 --> 0:21:20.240 masterpiece of flywheel of growth and innovation. 0:21:20.320 --> 0:21:22.840 I've already received several techs. 0:21:22.600 --> 0:21:26.400 Today on this announcement from other tech companies and systems 0:21:26.440 --> 0:21:29.119 integrators that are like, Wow, what are you doing there? 0:21:29.160 --> 0:21:31.320 What's going on in West Palm. 0:21:30.920 --> 0:21:34.000 Bill, We'll see who comes on to say they're moving next. 0:21:34.000 --> 0:21:38.000 Bill McDermott, CEO of Service Now Stephen Ross, CEO related Ross. 0:21:38.280 --> 0:21:42.840 Great to have you both. It's time now for talking tech. 0:21:42.880 --> 0:21:46.359 First up, Amazon satellite internet venture project Kaiper, expected to 0:21:46.400 --> 0:21:49.160 offer service in five countries, including the US by early 0:21:49.240 --> 0:21:52.120 twenty twenty six. The names to compete with Musk Starlink, 0:21:52.320 --> 0:21:54.840 and has already reached an agreement to provide on board 0:21:54.840 --> 0:21:58.280