1 00:00:01,440 --> 00:00:04,600 Speaker 1: From the heart where Innovation of Money and power. 2 00:00:04,320 --> 00:00:06,720 Speaker 2: Collie in Silicon Valley, NBN. 3 00:00:07,080 --> 00:00:11,559 Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 4 00:00:25,480 --> 00:00:27,720 Speaker 3: Live from New York and San Francisco. This is Bloomberg 5 00:00:27,760 --> 00:00:32,080 Speaker 3: Technology coming up. TSMC SAWS as the chipmaker hikes its 6 00:00:32,200 --> 00:00:35,400 Speaker 3: revenue outlook, AI hardware exuberance is it back? 7 00:00:36,240 --> 00:00:40,480 Speaker 4: Plus Meta's new effort to stop set stortion across Instagram, 8 00:00:40,520 --> 00:00:42,760 Speaker 4: a first look at the campaign Mate to keep Team 9 00:00:42,920 --> 00:00:44,560 Speaker 4: safe across its platforms. 10 00:00:44,640 --> 00:00:48,280 Speaker 3: And Amazon embraces nuclear power to insurance AI energy needs 11 00:00:48,280 --> 00:00:51,760 Speaker 3: and met awsco joins US Live with details on the 12 00:00:51,760 --> 00:00:54,280 Speaker 3: clean energy effort. But first I've got to check out 13 00:00:54,480 --> 00:00:55,760 Speaker 3: the TSMC trade. 14 00:00:56,000 --> 00:01:01,640 Speaker 4: D Yeah, TSMC is off top story Taiwan Semiconducts and Manufacturing. 15 00:01:01,640 --> 00:01:04,080 Speaker 4: These are the ADRs the US listed shares. 16 00:01:04,400 --> 00:01:05,320 Speaker 2: They are up big. 17 00:01:05,400 --> 00:01:07,720 Speaker 4: In fact, the shares are trading at their highest level 18 00:01:08,000 --> 00:01:11,600 Speaker 4: since nineteen ninety seven, when they first started trading in 19 00:01:11,600 --> 00:01:15,600 Speaker 4: the United States. The outlook for revenue growth for twenty 20 00:01:15,640 --> 00:01:19,759 Speaker 4: twenty four is boosted about thirty percent in dollar terms. 21 00:01:19,800 --> 00:01:21,840 Speaker 4: And the big picture, Carro, is that we kind of 22 00:01:21,840 --> 00:01:25,040 Speaker 4: feel better about the outlook for the chip industry in general, 23 00:01:25,120 --> 00:01:29,360 Speaker 4: why TSMC is the contrat manufacturers to the world. They 24 00:01:29,520 --> 00:01:32,960 Speaker 4: make the most important chips that we care about, namingly 25 00:01:33,120 --> 00:01:36,399 Speaker 4: those high performance GPUs in the AI context and. 26 00:01:36,400 --> 00:01:40,080 Speaker 3: Post ASML, we had a lot of anxiety around hardware 27 00:01:40,240 --> 00:01:43,280 Speaker 3: and chip making, but doesn't seem like it's there right 28 00:01:43,319 --> 00:01:45,880 Speaker 3: now because most Peter Elstrong can join us from London 29 00:01:45,880 --> 00:01:48,200 Speaker 3: for more and Peter just give us that context. What 30 00:01:48,240 --> 00:01:51,840 Speaker 3: TSMC manages to prove to the market that really echoing 31 00:01:51,880 --> 00:01:53,880 Speaker 3: in video the demand is insatiable. 32 00:01:55,440 --> 00:01:58,800 Speaker 5: That's right, Kirolin, As you alluded to, all eyes were 33 00:01:58,880 --> 00:02:02,720 Speaker 5: on TSMC for this ASML report. The Dutch equipment company 34 00:02:02,960 --> 00:02:04,840 Speaker 5: came out and it said that bookings in the chip 35 00:02:04,880 --> 00:02:08,440 Speaker 5: industry were only about half of what analysts had been expecting. 36 00:02:08,639 --> 00:02:11,000 Speaker 5: And that really started the industry and Vidia stock was 37 00:02:11,040 --> 00:02:13,560 Speaker 5: down and everybody was wondering who is the weak player 38 00:02:13,600 --> 00:02:17,000 Speaker 5: in the industry, which company is, which chip company is struggling, 39 00:02:17,040 --> 00:02:19,520 Speaker 5: And now we know it's not TSMC. TSMC has done 40 00:02:19,639 --> 00:02:22,200 Speaker 5: very very well here. They boosted their guidance, they beat 41 00:02:22,200 --> 00:02:26,320 Speaker 5: earnings estimates, and they reassured the market really that demand 42 00:02:26,360 --> 00:02:28,639 Speaker 5: for AI in particular is very very strong. 43 00:02:28,680 --> 00:02:30,079 Speaker 1: At this point. CC way. 44 00:02:30,120 --> 00:02:32,320 Speaker 5: The CEO got a lot of questions in the call 45 00:02:32,400 --> 00:02:35,560 Speaker 5: after results about that, and he said that the demand 46 00:02:35,680 --> 00:02:38,200 Speaker 5: is real. He called it insane at one point. He said, 47 00:02:38,240 --> 00:02:40,280 Speaker 5: it's very very strong at this point. So that's there's 48 00:02:40,280 --> 00:02:42,160 Speaker 5: a reassurance play that's going on here too. 49 00:02:43,200 --> 00:02:47,400 Speaker 4: Piter TSMC boosted its capital expenditures outlook for twenty twenty five. 50 00:02:47,720 --> 00:02:52,840 Speaker 5: Why is that important, Well, it's partly important because ASML 51 00:02:53,160 --> 00:02:55,840 Speaker 5: is the company that sells the chip making machines to 52 00:02:55,880 --> 00:03:00,520 Speaker 5: all these companies. TSMC is the most advanced producer of 53 00:03:00,560 --> 00:03:03,440 Speaker 5: these chips, and so there's a question about who's going 54 00:03:03,520 --> 00:03:06,240 Speaker 5: to buy these machines from ASML and then others in 55 00:03:06,280 --> 00:03:08,560 Speaker 5: the industry. We know that a couple of the key 56 00:03:08,600 --> 00:03:11,679 Speaker 5: players are struggling right now. Intel and Samsung are both 57 00:03:11,720 --> 00:03:14,400 Speaker 5: having quite a bit of trouble. TSMC appears to be 58 00:03:14,480 --> 00:03:17,560 Speaker 5: doing very well, partly because of AI to Nvidia. They 59 00:03:17,600 --> 00:03:20,680 Speaker 5: also supply the chips to Apple, which is trying to 60 00:03:20,720 --> 00:03:23,720 Speaker 5: sell its phones in part because of their AI capabilities. 61 00:03:23,919 --> 00:03:24,680 Speaker 1: So we're seeing this. 62 00:03:24,760 --> 00:03:26,920 Speaker 5: Bifurcation in the market right now where you have some 63 00:03:27,000 --> 00:03:29,600 Speaker 5: week players, some struggling quite a bit, and then you 64 00:03:29,639 --> 00:03:32,760 Speaker 5: have some like TSMC, like in Nvidia, like s Kahnix 65 00:03:32,760 --> 00:03:34,320 Speaker 5: in Korea too, that are doing very. 66 00:03:34,160 --> 00:03:38,880 Speaker 3: Well, and TSMC committing to capital expenditure globally. Right they're 67 00:03:38,880 --> 00:03:41,640 Speaker 3: going to be building out manufacturing, not just in Asia 68 00:03:41,680 --> 00:03:42,600 Speaker 3: where you usually sit. 69 00:03:43,640 --> 00:03:45,040 Speaker 1: That's a very important point. 70 00:03:45,120 --> 00:03:49,200 Speaker 5: For many decades, TSMC only produced its chips within Taiwan. 71 00:03:49,240 --> 00:03:51,280 Speaker 5: It felt it was easier to kind of concentrate all 72 00:03:51,320 --> 00:03:53,120 Speaker 5: its production in one place. And over the past few 73 00:03:53,200 --> 00:03:56,320 Speaker 5: years we've seen that business model really evolve where they've 74 00:03:56,320 --> 00:03:59,240 Speaker 5: been asked by the US, by Europe, by Japan too 75 00:03:59,680 --> 00:04:02,920 Speaker 5: to build these chip making plants in their domestic markets, 76 00:04:02,960 --> 00:04:05,880 Speaker 5: probably because of the supply chain sharks that we saw 77 00:04:06,000 --> 00:04:08,600 Speaker 5: during the COVID pandemic. While these countries want to make 78 00:04:08,640 --> 00:04:11,160 Speaker 5: sure that they can get those chips, TSMC is the 79 00:04:11,160 --> 00:04:13,680 Speaker 5: best chip maker out there, so they want TSMC to 80 00:04:13,760 --> 00:04:16,640 Speaker 5: come to the United States, to Japan, to Europe and 81 00:04:16,680 --> 00:04:19,279 Speaker 5: beyond to try to make those chips and make sure 82 00:04:19,279 --> 00:04:20,600 Speaker 5: that they're being produced locally. 83 00:04:20,800 --> 00:04:23,080 Speaker 1: So far, that model seems to be working pretty well. 84 00:04:23,920 --> 00:04:27,200 Speaker 4: Bloomberg's Peter Elstrom, who's the executive editor leading our tech 85 00:04:27,240 --> 00:04:30,839 Speaker 4: coverage from Asia, hours into Europe, now into the US, 86 00:04:30,839 --> 00:04:32,520 Speaker 4: and by the way, one of the names up big 87 00:04:32,520 --> 00:04:36,159 Speaker 4: on the same logic is in Nvidia caro another top 88 00:04:36,200 --> 00:04:36,920 Speaker 4: story you've got. 89 00:04:37,040 --> 00:04:39,080 Speaker 3: Yeah, look at Nvidia at a new record high. Let's 90 00:04:39,080 --> 00:04:42,839 Speaker 3: switch to Apple now, because secretly it had worked with 91 00:04:43,040 --> 00:04:47,240 Speaker 3: Chinese auto make a BYD four years. According to Bloomberg's sources, 92 00:04:47,240 --> 00:04:49,679 Speaker 3: the tech giant partner with BYD to develop long range 93 00:04:49,680 --> 00:04:52,719 Speaker 3: EV batteries as part of what it's now canceled car 94 00:04:52,760 --> 00:04:56,560 Speaker 3: project Nimbos. Gabrielle Coupler is with us and Gabby the 95 00:04:56,640 --> 00:04:59,280 Speaker 3: context here is a wonderful big take that you have 96 00:04:59,600 --> 00:05:03,280 Speaker 3: going into the BYD success story. But just take us 97 00:05:03,279 --> 00:05:06,320 Speaker 3: to the Apple relationship and would it helped BYD. 98 00:05:06,040 --> 00:05:09,400 Speaker 6: Achieve sure, thank you. 99 00:05:09,400 --> 00:05:11,120 Speaker 7: You know, I want to be clear, I think this 100 00:05:11,279 --> 00:05:13,440 Speaker 7: was really a two way street, you know. I think 101 00:05:13,520 --> 00:05:16,479 Speaker 7: BYD and like a lot of battery makers in China 102 00:05:16,520 --> 00:05:19,720 Speaker 7: had been working with the new chemistry called LFP lithium 103 00:05:19,760 --> 00:05:23,280 Speaker 7: iron phosphate and they had made a battery cell that 104 00:05:23,440 --> 00:05:26,160 Speaker 7: was really impressive in terms of its safety metrics, its 105 00:05:26,240 --> 00:05:28,920 Speaker 7: resistance you know to fire risks, but also could hold 106 00:05:28,960 --> 00:05:31,600 Speaker 7: a lot of energy. Meanwhile, Apple was working on the 107 00:05:31,640 --> 00:05:34,640 Speaker 7: Apple car and they were working on a design for 108 00:05:34,680 --> 00:05:37,239 Speaker 7: a pack to have an EV they would have maximum range. 109 00:05:37,279 --> 00:05:39,200 Speaker 7: That was one of their kind of key targets for 110 00:05:39,240 --> 00:05:42,560 Speaker 7: that project. And these two companies came together from about 111 00:05:42,600 --> 00:05:44,920 Speaker 7: twenty seventeen to twenty twenty and kind of put their 112 00:05:44,960 --> 00:05:47,720 Speaker 7: best and brighters together to work on a battery that 113 00:05:47,839 --> 00:05:51,400 Speaker 7: would be best in class for the Apple car. Now, ultimately, 114 00:05:51,520 --> 00:05:53,760 Speaker 7: as we know, Apple pulled the plug on that project 115 00:05:53,800 --> 00:05:58,520 Speaker 7: earlier this year. Meanwhile, BYD, which took that you know 116 00:05:58,600 --> 00:06:00,560 Speaker 7: work that hit it, are you know its own IP. 117 00:06:00,640 --> 00:06:02,760 Speaker 7: I want to be very clear, BYD did comment to 118 00:06:02,839 --> 00:06:04,880 Speaker 7: us that there is no Apple IP in its own 119 00:06:05,360 --> 00:06:08,440 Speaker 7: famous blade battery. But today you look at all the 120 00:06:08,440 --> 00:06:11,000 Speaker 7: cars that BYD is selling, every single one of them 121 00:06:11,240 --> 00:06:13,279 Speaker 7: has this blade battery in there. It was a game 122 00:06:13,400 --> 00:06:15,800 Speaker 7: changer for the company. It's what helped them improve their 123 00:06:15,839 --> 00:06:18,719 Speaker 7: sales really rocket from being kind of a nobody and 124 00:06:18,760 --> 00:06:21,120 Speaker 7: also ran in the China market to being the number 125 00:06:21,160 --> 00:06:24,159 Speaker 7: one in the world's biggest car market. And what my 126 00:06:24,200 --> 00:06:26,920 Speaker 7: colleague and i am Mark German, uncovered is that there 127 00:06:27,000 --> 00:06:29,200 Speaker 7: was some influence from Apple in that journey. I don't 128 00:06:29,240 --> 00:06:31,960 Speaker 7: want to take away anything from BID because they themselves 129 00:06:32,000 --> 00:06:35,559 Speaker 7: are a very innovative company, but we did the world 130 00:06:35,600 --> 00:06:37,240 Speaker 7: did not know. We thought this was all something that 131 00:06:37,279 --> 00:06:39,520 Speaker 7: went on in the labs and BID and Shanjen, and 132 00:06:39,560 --> 00:06:41,560 Speaker 7: that's not the case. There was a lot of collaboration 133 00:06:42,400 --> 00:06:43,839 Speaker 7: between Apple and BID. 134 00:06:44,520 --> 00:06:49,320 Speaker 4: Right, really important piece of reporting about BYD's prowess in 135 00:06:49,440 --> 00:06:53,480 Speaker 4: batteries and history and batteries. And then there's the electric 136 00:06:53,560 --> 00:06:57,880 Speaker 4: vehicle side, specifically in the cheaper categories, and that's the 137 00:06:57,920 --> 00:07:00,920 Speaker 4: whole point of the big take thought. With the basics, 138 00:07:01,040 --> 00:07:04,960 Speaker 4: what is the conclusion you reach about BYD and it 139 00:07:05,040 --> 00:07:05,920 Speaker 4: strides globally. 140 00:07:08,320 --> 00:07:11,200 Speaker 7: I would say that my biggest takeaway from reporting this 141 00:07:11,280 --> 00:07:14,080 Speaker 7: story over the last few months is that if you 142 00:07:14,120 --> 00:07:17,559 Speaker 7: want to understand why BYD is the biggest car maker 143 00:07:17,560 --> 00:07:20,400 Speaker 7: in China, why they can make cars that are have 144 00:07:20,480 --> 00:07:23,400 Speaker 7: such impressive technology and yet such a low cost that 145 00:07:23,680 --> 00:07:26,960 Speaker 7: truly terrifies auto executives all around the world, whether they're 146 00:07:27,000 --> 00:07:30,520 Speaker 7: in Tokyo, Wilsburg, or Detroit, you've got to understand that 147 00:07:30,560 --> 00:07:33,480 Speaker 7: the story is much more complicated than subsidies. Obviously, right 148 00:07:33,520 --> 00:07:36,760 Speaker 7: now we're in the middle of a really intense period 149 00:07:36,760 --> 00:07:38,960 Speaker 7: of trade war and tariffs with the US and China, 150 00:07:39,040 --> 00:07:41,400 Speaker 7: with Europe, and China. And there's a lot of rhetoric 151 00:07:41,480 --> 00:07:44,760 Speaker 7: going around about, you know, how subsidies or what's making 152 00:07:44,760 --> 00:07:47,040 Speaker 7: these companies grow, and I don't want to deny that 153 00:07:47,080 --> 00:07:49,920 Speaker 7: at all. China is not a free market economy. The 154 00:07:50,280 --> 00:07:52,360 Speaker 7: level of subsidy. People always say, yeah, well the US 155 00:07:52,360 --> 00:07:55,320 Speaker 7: has subsidy two or the EU s subsidies two. That's true, 156 00:07:55,320 --> 00:07:58,840 Speaker 7: but the scale of subsidies in China is much greater 157 00:07:58,960 --> 00:08:03,240 Speaker 7: than any other freemark market, democratic country. So having said that, 158 00:08:03,800 --> 00:08:06,120 Speaker 7: if it was just subsidise, you would see twenty buids, 159 00:08:06,120 --> 00:08:08,920 Speaker 7: whereas there's only one. And that is really a testament 160 00:08:08,960 --> 00:08:13,720 Speaker 7: to the innovation, the engineering breakthroughs, the determination, the kind 161 00:08:13,760 --> 00:08:16,160 Speaker 7: of stick it to it. This of the founder, Juan Chuanfu, 162 00:08:16,400 --> 00:08:19,840 Speaker 7: And that's really what I try to tell in this story. 163 00:08:20,080 --> 00:08:22,760 Speaker 4: Bloomberg's Gabrielle Coppola, thank you so much for joining us 164 00:08:22,760 --> 00:08:26,200 Speaker 4: on Bloomberg Technology. Now coming up, Instagram sets launch a 165 00:08:26,200 --> 00:08:30,680 Speaker 4: new campaign meant to keep team safe from sextortion scams. 166 00:08:31,000 --> 00:08:33,679 Speaker 4: We have metas head of Global Safety here on the program. 167 00:08:33,880 --> 00:08:38,760 Speaker 4: This is Bloomberg Technology. 168 00:08:44,880 --> 00:08:47,719 Speaker 3: Now let's turn to Instagram, whose parent company Meta has 169 00:08:47,760 --> 00:08:50,720 Speaker 3: today launched a new campaign meant to help protect teams 170 00:08:50,760 --> 00:08:54,160 Speaker 3: on its platform. The campaign raises awareness of sextortion and 171 00:08:54,240 --> 00:08:54,920 Speaker 3: includes this. 172 00:08:54,960 --> 00:08:59,760 Speaker 8: Ad Let's talk about sex stortion. That's when someone threatens 173 00:08:59,800 --> 00:09:02,200 Speaker 8: to a expose a sexual image or video to get 174 00:09:02,280 --> 00:09:05,600 Speaker 8: you to do something like send money. Here are some 175 00:09:05,679 --> 00:09:09,880 Speaker 8: red flags to look out for someone coming on too strong, 176 00:09:13,040 --> 00:09:16,120 Speaker 8: asking to trade photos. 177 00:09:16,840 --> 00:09:17,920 Speaker 2: Or move to another app. 178 00:09:19,240 --> 00:09:21,280 Speaker 3: I had to talk more about the changes is I'm 179 00:09:21,360 --> 00:09:24,520 Speaker 3: taking any Davis Physic, Global head of Safety for Meta 180 00:09:24,679 --> 00:09:27,320 Speaker 3: and it's not just the ad campaign or crisis line, 181 00:09:27,360 --> 00:09:29,720 Speaker 3: but there's also product features updates. Can you talk us 182 00:09:29,760 --> 00:09:30,079 Speaker 3: through them? 183 00:09:30,280 --> 00:09:30,559 Speaker 1: Yeah? 184 00:09:30,600 --> 00:09:31,200 Speaker 6: Absolutely. 185 00:09:31,240 --> 00:09:33,880 Speaker 9: I'll give you three of the most compelling features. So 186 00:09:34,000 --> 00:09:37,320 Speaker 9: one is the prevention of screenshots. So if you send 187 00:09:37,800 --> 00:09:40,920 Speaker 9: a view once image or video, we're going to prevent 188 00:09:41,000 --> 00:09:45,040 Speaker 9: somebody from screenshotting that image or recording that video. That's 189 00:09:45,080 --> 00:09:47,880 Speaker 9: important because you're sending a signal that you want to 190 00:09:47,920 --> 00:09:50,240 Speaker 9: protect that image and you don't want someone sharing that 191 00:09:50,280 --> 00:09:55,280 Speaker 9: with somebody. The other is blocking the follow requests of 192 00:09:55,360 --> 00:09:57,160 Speaker 9: potentially scamming accounts. 193 00:09:57,440 --> 00:10:00,000 Speaker 6: This is important because we already block. 194 00:10:00,040 --> 00:10:03,560 Speaker 9: Suge requests even from just unconnected accounts for teens, but 195 00:10:03,600 --> 00:10:05,680 Speaker 9: we want to make sure that we're closing down the 196 00:10:05,800 --> 00:10:08,760 Speaker 9: avenues for these scammers to try to find teens on 197 00:10:08,800 --> 00:10:12,320 Speaker 9: the platform, and then the other one is hiding the 198 00:10:12,400 --> 00:10:16,360 Speaker 9: follower and following lists of teens from these potential scammers. 199 00:10:16,559 --> 00:10:19,960 Speaker 9: The reason that's important is because once they have that image, 200 00:10:20,000 --> 00:10:22,280 Speaker 9: they threaten to share with a friends and family that 201 00:10:22,320 --> 00:10:23,880 Speaker 9: they find on those lists. 202 00:10:24,640 --> 00:10:27,840 Speaker 4: And TIGGINGI why is the campaign being launched today and 203 00:10:27,920 --> 00:10:31,680 Speaker 4: not previously a year ago when data showed spikes in 204 00:10:31,720 --> 00:10:34,800 Speaker 4: this kind of activity that you're now trying to prevent 205 00:10:35,280 --> 00:10:36,040 Speaker 4: and crack down on. 206 00:10:36,360 --> 00:10:37,320 Speaker 6: Yeah, thank you very much. 207 00:10:37,480 --> 00:10:41,600 Speaker 9: This is building on initial additional protections that we had 208 00:10:41,640 --> 00:10:45,040 Speaker 9: already launched. So recently we launched teen accounts that put 209 00:10:45,080 --> 00:10:50,920 Speaker 9: teens automatically into private accounts and have our strictest messaging restrictions. 210 00:10:51,040 --> 00:10:55,040 Speaker 9: This is taking it another layer out and it reflects 211 00:10:55,040 --> 00:10:58,440 Speaker 9: a change in the crime. It's moved to becoming a 212 00:10:58,520 --> 00:11:02,199 Speaker 9: financial crime where people ask for more money, and with that, 213 00:11:02,240 --> 00:11:05,040 Speaker 9: there's been a spike of this across the Internet. 214 00:11:05,960 --> 00:11:08,680 Speaker 4: And taken how's the technology changed if there's a change 215 00:11:08,679 --> 00:11:12,520 Speaker 4: in the crime. What my colleague Olivia Carville reported, for example, 216 00:11:12,600 --> 00:11:16,080 Speaker 4: was in the case of Facebook in Nigeria, for example, 217 00:11:16,320 --> 00:11:21,960 Speaker 4: technologies used to as accounterance to suspicious activity. So you 218 00:11:22,000 --> 00:11:24,280 Speaker 4: have the video which we showed, But what's the role 219 00:11:24,320 --> 00:11:25,320 Speaker 4: of technology here. 220 00:11:25,600 --> 00:11:27,480 Speaker 6: Yeah, it's a very very good question. 221 00:11:27,840 --> 00:11:32,680 Speaker 9: The technology tries to identify potentially scamming accounts, and they'll 222 00:11:32,720 --> 00:11:34,880 Speaker 9: do things like they see a new account that. 223 00:11:34,920 --> 00:11:37,360 Speaker 6: Sends a lot of follow requests to a. 224 00:11:37,400 --> 00:11:40,600 Speaker 9: Team that is outside of the teens, that are outside 225 00:11:40,600 --> 00:11:45,760 Speaker 9: of the area where that initial individual is messaging from 226 00:11:45,840 --> 00:11:46,760 Speaker 9: or following from. 227 00:11:46,880 --> 00:11:48,480 Speaker 6: Those are the kinds of signals we use. 228 00:11:48,520 --> 00:11:51,640 Speaker 9: We use a large range of signals to identify these 229 00:11:51,679 --> 00:11:54,679 Speaker 9: scamming accounts potentially scamming. They're not scamming if they're scaming, 230 00:11:54,720 --> 00:11:57,400 Speaker 9: or we're going to remove them, but potentially scamming accounts. 231 00:11:58,280 --> 00:12:02,960 Speaker 3: You'll of course helping hide from these potentially scamming accounts. 232 00:12:03,200 --> 00:12:05,960 Speaker 3: Why not let a teen just hide full stop their 233 00:12:06,000 --> 00:12:07,439 Speaker 3: followers and who they follow. 234 00:12:07,760 --> 00:12:09,520 Speaker 6: Well, it's a good question. 235 00:12:09,600 --> 00:12:12,959 Speaker 9: These are features that are important for connecting and finding 236 00:12:13,040 --> 00:12:14,920 Speaker 9: the people that you're interested in, and we want to 237 00:12:14,960 --> 00:12:18,200 Speaker 9: protect those valuable features for enjoying the app, but we 238 00:12:18,240 --> 00:12:20,079 Speaker 9: want to find ways to make sure that they can't 239 00:12:20,080 --> 00:12:21,760 Speaker 9: be exploited by these scammers. 240 00:12:22,920 --> 00:12:27,040 Speaker 3: You, I'm sure face countless questions and indeed, your company 241 00:12:27,080 --> 00:12:32,559 Speaker 3: and others face countless lawsuits now from families, from authorities 242 00:12:32,600 --> 00:12:35,120 Speaker 3: that feel that what you offer in social media is 243 00:12:35,160 --> 00:12:38,120 Speaker 3: harmful for children, whether indeed it's sextortion or indeed addiction. 244 00:12:38,920 --> 00:12:41,240 Speaker 3: How are you fighting those fights? How do you feel 245 00:12:41,280 --> 00:12:44,040 Speaker 3: that it's coming to you at a lawsuit perspective. 246 00:12:43,840 --> 00:12:46,800 Speaker 9: Well, from my perspective, the thing that's most important is 247 00:12:46,840 --> 00:12:49,800 Speaker 9: to listen to parents and understand what it is that 248 00:12:49,840 --> 00:12:52,240 Speaker 9: they're worried about and make sure that they feel that 249 00:12:52,280 --> 00:12:54,360 Speaker 9: we can that we have the protections that give them 250 00:12:54,360 --> 00:12:55,160 Speaker 9: the peace of mind. 251 00:12:55,559 --> 00:12:57,679 Speaker 6: So we know, for example, parents. 252 00:12:57,440 --> 00:12:59,520 Speaker 9: Are worried about the amount of time that teens are 253 00:12:59,559 --> 00:13:02,400 Speaker 9: spending on the platform. So when we launch teen accounts, 254 00:13:02,440 --> 00:13:05,320 Speaker 9: we've now created it so that between ten pm and 255 00:13:05,400 --> 00:13:10,240 Speaker 9: seven am, they're not getting notifications to their account and 256 00:13:10,280 --> 00:13:13,400 Speaker 9: we're sending an auto apply saying hey, this is time 257 00:13:13,480 --> 00:13:15,520 Speaker 9: for sleep and tikenny. 258 00:13:15,760 --> 00:13:18,480 Speaker 4: I'm interested in the audience you're trying to protect and 259 00:13:18,559 --> 00:13:21,360 Speaker 4: how they use the technology you have. The family of 260 00:13:21,440 --> 00:13:25,559 Speaker 4: apps largely smartphone centric, but sometimes they're accessed through a 261 00:13:25,600 --> 00:13:29,000 Speaker 4: web browser right on the computer. How do you adjust 262 00:13:29,280 --> 00:13:32,320 Speaker 4: your technology and your policy for that, How people actually 263 00:13:32,360 --> 00:13:34,080 Speaker 4: access your applications. 264 00:13:34,240 --> 00:13:36,280 Speaker 9: That's a really good question. One of the things that 265 00:13:36,320 --> 00:13:39,439 Speaker 9: I can give you an example of is for screenshotting, 266 00:13:39,600 --> 00:13:42,079 Speaker 9: So we are now preventing screenshots. As I mentioned, for 267 00:13:43,400 --> 00:13:46,800 Speaker 9: certain types of image sharing on the browser, you can't 268 00:13:46,840 --> 00:13:50,559 Speaker 9: really prevent that screenshot, so we're just preventing them from 269 00:13:50,559 --> 00:13:53,679 Speaker 9: actually sharing seeing the image. 270 00:13:54,360 --> 00:13:57,360 Speaker 3: I go back to the point that you say you're 271 00:13:57,360 --> 00:14:00,160 Speaker 3: listening to what parents and I'm ge I'm sure some 272 00:14:00,240 --> 00:14:03,840 Speaker 3: teams are saying to you, what about as you see 273 00:14:03,880 --> 00:14:07,000 Speaker 3: these legal efforts proceeding, do it in your heart of heartsfield, 274 00:14:07,080 --> 00:14:08,920 Speaker 3: enough is being done for the parents, for the teams 275 00:14:09,000 --> 00:14:11,160 Speaker 3: using it? And do you think the legal way in 276 00:14:11,160 --> 00:14:13,480 Speaker 3: which they're pursuing the claims is the right way for them. 277 00:14:13,400 --> 00:14:14,760 Speaker 6: To try and make change. 278 00:14:15,000 --> 00:14:17,319 Speaker 9: I think one of the things that parents are struggling 279 00:14:17,360 --> 00:14:20,800 Speaker 9: with is a set of standards that they can understand 280 00:14:20,840 --> 00:14:24,600 Speaker 9: for assessing whether their team should use a particular app. 281 00:14:24,800 --> 00:14:27,280 Speaker 9: One of the things that we've been pushing for is 282 00:14:27,440 --> 00:14:30,960 Speaker 9: legislation that would require the operating system or the app 283 00:14:31,040 --> 00:14:34,640 Speaker 9: store to provide apps like ours with the age of 284 00:14:34,680 --> 00:14:37,360 Speaker 9: the user. That would enable us to ensure that we 285 00:14:37,440 --> 00:14:40,600 Speaker 9: can provide an age appropriate experience, and they could also 286 00:14:40,760 --> 00:14:44,040 Speaker 9: set it up so that parents can not approve of 287 00:14:44,680 --> 00:14:46,920 Speaker 9: an app download if they want to. These are the 288 00:14:46,960 --> 00:14:49,200 Speaker 9: kinds of things we need to make it much simpler 289 00:14:49,200 --> 00:14:49,840 Speaker 9: for parents. 290 00:14:50,680 --> 00:14:52,640 Speaker 3: I'm Tikenny Davis thanks to spending out some of the 291 00:14:52,720 --> 00:14:54,880 Speaker 3: changes for those parents and teens. Today, head of Global 292 00:14:54,880 --> 00:15:07,320 Speaker 3: Safety for Meta. 293 00:15:04,760 --> 00:15:07,840 Speaker 4: Big Tech is going nuclear in order to secure the 294 00:15:07,960 --> 00:15:11,600 Speaker 4: energy needed to fuel AI. Here's what Google's senior director 295 00:15:11,640 --> 00:15:15,560 Speaker 4: of Climate and Energy told us yesterday on Bloomberg Technology. 296 00:15:16,360 --> 00:15:19,520 Speaker 10: The world needs more carbon free energy and this agreement 297 00:15:19,560 --> 00:15:22,720 Speaker 10: that we've signed with Cairos is an important milestone in 298 00:15:22,800 --> 00:15:25,000 Speaker 10: what's been a fifteen year journey at Google to make 299 00:15:25,000 --> 00:15:28,440 Speaker 10: the transition to clean energy. It's our first nuclear energy deal, 300 00:15:28,920 --> 00:15:32,040 Speaker 10: and we feel that nuclear is a very important technology 301 00:15:32,200 --> 00:15:36,160 Speaker 10: for going carbon free for officers, data centers, communities where 302 00:15:36,160 --> 00:15:39,840 Speaker 10: we operate because it's an always on carbon free energy resource. 303 00:15:41,800 --> 00:15:44,800 Speaker 4: Google's not the only one. Amazon also announcing half a 304 00:15:44,840 --> 00:15:48,240 Speaker 4: billion dollar investment in nuclear clean energy. Here to discuss it, 305 00:15:48,360 --> 00:15:52,080 Speaker 4: Matt Garman, CEO of AWS, and Matt, welcome back to 306 00:15:52,080 --> 00:15:56,360 Speaker 4: Bloomberg Technology. It's so interesting to see that. Thank you 307 00:15:56,440 --> 00:15:59,680 Speaker 4: to see the hyperscala Is so focused on this. I 308 00:15:59,720 --> 00:16:02,880 Speaker 4: think we start with y SMRs, right, that's a very 309 00:16:02,920 --> 00:16:04,600 Speaker 4: specific avenue to go down. 310 00:16:05,680 --> 00:16:05,880 Speaker 2: Yeah. 311 00:16:05,880 --> 00:16:08,200 Speaker 11: I think SMRs are a great new technology and they're 312 00:16:08,200 --> 00:16:11,520 Speaker 11: an important part of the energy landscape that we're looking at. 313 00:16:11,920 --> 00:16:14,440 Speaker 11: We made a five hundred million dollar investment in a 314 00:16:14,440 --> 00:16:17,680 Speaker 11: company called X Energy that are really I think they're 315 00:16:17,760 --> 00:16:20,040 Speaker 11: one of the leaders in this space, and they're really 316 00:16:20,080 --> 00:16:21,720 Speaker 11: pushing on the technology SMRs. 317 00:16:22,480 --> 00:16:25,320 Speaker 2: They have a couple of advantages. They're able to be. 318 00:16:25,200 --> 00:16:28,240 Speaker 11: Constructed in a smaller footprint, which means you can put 319 00:16:28,240 --> 00:16:30,760 Speaker 11: them closer to where the energy needs to be. They're 320 00:16:30,760 --> 00:16:34,760 Speaker 11: also incredibly safe and easily manufactural, and so they're very 321 00:16:34,800 --> 00:16:38,840 Speaker 11: promising technology and we're quite excited about our investments in 322 00:16:38,840 --> 00:16:41,040 Speaker 11: this space and the partnerships that we have coming up. 323 00:16:42,400 --> 00:16:46,400 Speaker 3: Small modular reactors SMRs For those getting in the acronym lingo, Matt, 324 00:16:46,400 --> 00:16:49,800 Speaker 3: it's great to have you. What about other deals, I mean, 325 00:16:49,880 --> 00:16:51,880 Speaker 3: is this the first of many? 326 00:16:52,000 --> 00:16:54,920 Speaker 11: Yeah, and so a couple of details on the things 327 00:16:54,920 --> 00:16:57,440 Speaker 11: that we announced yesterday. One, we have this investment with 328 00:16:57,880 --> 00:16:59,800 Speaker 11: x Energy, who's a producer of these, but we also 329 00:16:59,840 --> 00:17:02,920 Speaker 11: have have announced two partnerships with utilities and so we're 330 00:17:02,960 --> 00:17:07,000 Speaker 11: actually well down the path, ongoing and actually implementing some 331 00:17:07,040 --> 00:17:10,560 Speaker 11: of these deals. So we have a partnership with Dominion 332 00:17:10,840 --> 00:17:15,080 Speaker 11: in Virginia to go implement an SMR as part of 333 00:17:15,119 --> 00:17:18,600 Speaker 11: their energy footprint here in Virginia and with Energy Northwest 334 00:17:18,600 --> 00:17:21,760 Speaker 11: in Washington and Oregon, and our goal is to deliver 335 00:17:21,920 --> 00:17:24,760 Speaker 11: more than five gigawatts of nuclear energy. We think that 336 00:17:24,800 --> 00:17:27,600 Speaker 11: it's a fantastic opportunity for us to keep pushing on 337 00:17:27,680 --> 00:17:30,720 Speaker 11: the carbon energy footprint that's needed as we continue to 338 00:17:30,760 --> 00:17:31,679 Speaker 11: scale around the country. 339 00:17:32,359 --> 00:17:34,399 Speaker 4: Matt, if you're well down the path and based on 340 00:17:34,440 --> 00:17:36,720 Speaker 4: what you just said, do you have a clear line 341 00:17:36,760 --> 00:17:39,880 Speaker 4: of sight on what the dollar per mega what hour 342 00:17:39,960 --> 00:17:42,680 Speaker 4: is going to be out of those facilities. 343 00:17:43,800 --> 00:17:44,720 Speaker 2: We don't know that yet. 344 00:17:45,160 --> 00:17:48,080 Speaker 11: We're still we are still early and we're still learning 345 00:17:48,480 --> 00:17:51,840 Speaker 11: many of these technologies for these reactors or probably won't 346 00:17:51,840 --> 00:17:55,040 Speaker 11: come online until twenty thirty, so we'll still be learning there. 347 00:17:55,080 --> 00:17:57,120 Speaker 2: But we feel that as we. 348 00:17:57,080 --> 00:18:00,359 Speaker 11: Scale and in the fullness of time, these energy are 349 00:18:00,359 --> 00:18:02,439 Speaker 11: going to be quite competitive from a cost perspective, and 350 00:18:02,440 --> 00:18:04,840 Speaker 11: it's one of the reasons that we're so excited about them. 351 00:18:05,280 --> 00:18:08,080 Speaker 4: Would you bring back a full nuclear plant like three 352 00:18:08,119 --> 00:18:11,480 Speaker 4: mile Island in Pennsylvania. And if so, which. 353 00:18:11,240 --> 00:18:15,200 Speaker 11: One, well, I wouldn't have done that one in particular. 354 00:18:15,240 --> 00:18:17,800 Speaker 11: But we actually have a partnership with Talent where we're 355 00:18:17,800 --> 00:18:21,480 Speaker 11: bringing more energy online in Pennsylvania, and that's we're actually 356 00:18:21,480 --> 00:18:24,200 Speaker 11: the very first company to announce a deal with Talent 357 00:18:24,920 --> 00:18:26,920 Speaker 11: several months ago. And so I think that some of 358 00:18:26,960 --> 00:18:31,160 Speaker 11: these large nuclear plants are also excellent source of energy 359 00:18:31,200 --> 00:18:33,080 Speaker 11: and they're an important part of that. As I said, 360 00:18:33,240 --> 00:18:35,600 Speaker 11: I think small modular reactors are going to be a 361 00:18:35,720 --> 00:18:38,879 Speaker 11: component of what we need for a carbon free energy world, 362 00:18:39,160 --> 00:18:41,719 Speaker 11: but large nuclear plants are going to be an important 363 00:18:41,720 --> 00:18:45,160 Speaker 11: part of that too. And we've said that we'll take 364 00:18:45,200 --> 00:18:47,919 Speaker 11: as much as almost a gigawot of power that we're 365 00:18:47,960 --> 00:18:51,359 Speaker 11: bringing back online from this large plant in Pennsylvania, where 366 00:18:51,400 --> 00:18:53,720 Speaker 11: we'll also be building data centers nearby. So I think 367 00:18:53,720 --> 00:18:56,800 Speaker 11: it's all an important part of the portfolio as we 368 00:18:56,840 --> 00:18:58,280 Speaker 11: move to decarbonized the energy. 369 00:18:58,640 --> 00:19:01,080 Speaker 3: Let's talk about the decobonization, because back when you announce 370 00:19:01,119 --> 00:19:03,920 Speaker 3: that deal in March with Susquehanna, you talked about how 371 00:19:03,960 --> 00:19:07,040 Speaker 3: still the aim is to be by twenty twenty five 372 00:19:07,320 --> 00:19:10,199 Speaker 3: one hundred percent renewable energy. Is that attainable with a 373 00:19:10,240 --> 00:19:12,920 Speaker 3: sudden desire to have AI and the energy that goes 374 00:19:12,920 --> 00:19:13,240 Speaker 3: with it. 375 00:19:14,240 --> 00:19:14,440 Speaker 2: Yeah. 376 00:19:14,480 --> 00:19:16,879 Speaker 11: In fact, we announced that this year we hit one 377 00:19:16,920 --> 00:19:19,879 Speaker 11: hundred percent carbon free energy in our systems, and I 378 00:19:19,880 --> 00:19:22,320 Speaker 11: think that now our goal is how do we, as 379 00:19:22,359 --> 00:19:24,480 Speaker 11: we look at all of the energy demands that the 380 00:19:24,520 --> 00:19:27,880 Speaker 11: business and the world frankly needs, how do we get 381 00:19:27,920 --> 00:19:31,480 Speaker 11: to a continued path on growing carbon free energy. And 382 00:19:31,480 --> 00:19:33,359 Speaker 11: so that's what a lot of these deals are about, 383 00:19:33,640 --> 00:19:36,000 Speaker 11: is for the future. As we look at power that 384 00:19:36,000 --> 00:19:38,480 Speaker 11: we're going to need in twenty five, twenty seven, thirty, 385 00:19:38,760 --> 00:19:40,920 Speaker 11: twenty forty, how do we make sure that we have 386 00:19:41,520 --> 00:19:44,960 Speaker 11: a ramp of power so that as the energy needs grow, 387 00:19:45,000 --> 00:19:48,920 Speaker 11: whether they're from electric vehicles or from companies increasingly digitizing, 388 00:19:49,080 --> 00:19:51,719 Speaker 11: or from generative AI, that we have enough carbon free 389 00:19:51,800 --> 00:19:53,480 Speaker 11: energy to support them. And so it's really a long 390 00:19:53,560 --> 00:19:55,719 Speaker 11: term view that we have, and part of this is 391 00:19:55,720 --> 00:19:57,919 Speaker 11: is on that long term view, how we continue to 392 00:19:57,920 --> 00:19:59,320 Speaker 11: have enough power well into the future. 393 00:19:59,400 --> 00:20:00,200 Speaker 6: Let's talk about. 394 00:20:00,080 --> 00:20:01,920 Speaker 3: Short term view if we come for a minute, Matt though, 395 00:20:01,960 --> 00:20:05,200 Speaker 3: because right here, right now, do you have the power 396 00:20:05,240 --> 00:20:08,119 Speaker 3: that is necessary from the places you want to be 397 00:20:08,160 --> 00:20:09,200 Speaker 3: getting it from. 398 00:20:10,119 --> 00:20:11,720 Speaker 2: We work really hard to make sure that we do. 399 00:20:12,200 --> 00:20:16,760 Speaker 11: Our businesses continuing to grow rapidly, and we're adding new 400 00:20:16,760 --> 00:20:19,240 Speaker 11: power and new data centers all of the time, and 401 00:20:19,280 --> 00:20:19,760 Speaker 11: so we. 402 00:20:19,720 --> 00:20:21,200 Speaker 2: Continue we look further out. 403 00:20:21,200 --> 00:20:23,920 Speaker 11: We have power that we're adding in twenty four, power 404 00:20:23,920 --> 00:20:27,000 Speaker 11: that we're adding in twenty twenty five, and continue out. 405 00:20:27,040 --> 00:20:30,800 Speaker 11: And as you may have heard, over the last five years, 406 00:20:31,080 --> 00:20:34,000 Speaker 11: Amazon has been the single biggest purchaser of renewable power 407 00:20:34,040 --> 00:20:36,520 Speaker 11: contracts in the world every year for the last five years, 408 00:20:36,600 --> 00:20:39,119 Speaker 11: and so we continue to do that. We continue to 409 00:20:39,119 --> 00:20:41,840 Speaker 11: add power to our footprint, and we plan multiple years 410 00:20:41,840 --> 00:20:44,280 Speaker 11: out because these projects that we go and launch they 411 00:20:44,320 --> 00:20:47,800 Speaker 11: take many years to come online, and so we have 412 00:20:48,160 --> 00:20:50,760 Speaker 11: lots of plans and we continue to grow as the 413 00:20:50,760 --> 00:20:51,840 Speaker 11: needs of our customers grow. 414 00:20:52,880 --> 00:20:55,320 Speaker 4: Matt, will you have any Blackwell online by the end 415 00:20:55,359 --> 00:20:55,840 Speaker 4: of this year? 416 00:20:58,320 --> 00:20:58,399 Speaker 5: No. 417 00:20:58,600 --> 00:21:02,879 Speaker 11: Unfortunately, in Video's timelines have shifted on that, and so 418 00:21:03,280 --> 00:21:04,760 Speaker 11: we have samples in the lab and we're working on 419 00:21:04,800 --> 00:21:08,480 Speaker 11: them right now. But production qualities are production quantities we 420 00:21:08,560 --> 00:21:11,520 Speaker 11: expect to be early next year. We work very closely 421 00:21:11,560 --> 00:21:15,280 Speaker 11: with in Nvidia on GBUS and super excited about that launch. 422 00:21:15,280 --> 00:21:19,000 Speaker 11: And in Video's own large research cluster is actually launching 423 00:21:19,000 --> 00:21:22,040 Speaker 11: in AWS, so we'll have the first production qualities will 424 00:21:22,080 --> 00:21:23,479 Speaker 11: be in AWS when they're ready. 425 00:21:23,640 --> 00:21:26,320 Speaker 2: But so right now we're working with them and we have. 426 00:21:26,320 --> 00:21:28,280 Speaker 11: Early samples, but as they get their yields up from 427 00:21:28,280 --> 00:21:31,720 Speaker 11: the respind of the Blackwell chip, it'll probably be early 428 00:21:31,720 --> 00:21:35,359 Speaker 11: next year before we really get production samples in real volume. 429 00:21:35,640 --> 00:21:39,720 Speaker 3: Another partnership, then Anthropics work on the chips. How is 430 00:21:39,760 --> 00:21:40,200 Speaker 3: that going? 431 00:21:40,280 --> 00:21:46,680 Speaker 11: Briefly, fantastic. Anthropic continues to deliver fantastic new models. Their 432 00:21:47,040 --> 00:21:49,560 Speaker 11: Sonnet three to five model is one of the most 433 00:21:49,600 --> 00:21:52,000 Speaker 11: powerful ones that is out there today and customers are 434 00:21:52,040 --> 00:21:54,920 Speaker 11: really enjoying using it on a variety of tasks. I 435 00:21:54,960 --> 00:21:59,159 Speaker 11: think the reasoning is industry and world class and a 436 00:21:59,160 --> 00:22:01,600 Speaker 11: bunch of the capability that enterprises are able to deliver 437 00:22:01,880 --> 00:22:05,080 Speaker 11: and the value they get from those models is really right. 438 00:22:05,240 --> 00:22:08,679 Speaker 11: It's fun to watch and we really enjoy that partnership 439 00:22:08,720 --> 00:22:12,320 Speaker 11: and we continued expected to go for a long time. 440 00:22:12,520 --> 00:22:16,040 Speaker 3: Matt Carmen, AWS CEO, we appreciate your time. Thank you. 441 00:22:23,880 --> 00:22:26,160 Speaker 3: Welcome back to Melumow Technology. I'm carolinehid in. 442 00:22:26,080 --> 00:22:28,640 Speaker 4: New York and Imed love Low in San Francisco. Let's 443 00:22:28,640 --> 00:22:31,119 Speaker 4: take a quick check on the markets and actually carried 444 00:22:31,160 --> 00:22:34,000 Speaker 4: the s and P five hundred is off its session high, 445 00:22:34,280 --> 00:22:36,360 Speaker 4: but at one point in the session reached an all 446 00:22:36,600 --> 00:22:39,960 Speaker 4: new time high on an interday basis. Technology has a 447 00:22:40,000 --> 00:22:41,840 Speaker 4: part to play in that right. There are many names 448 00:22:41,880 --> 00:22:44,520 Speaker 4: moving to the upside in VideA you will not be 449 00:22:44,600 --> 00:22:47,119 Speaker 4: surprised to hear is one of them. And part of 450 00:22:47,160 --> 00:22:51,840 Speaker 4: that is and carry through on the optimism around TSMC's 451 00:22:51,880 --> 00:22:55,679 Speaker 4: guidance that updated revenue growth outlook. We talked about it earlier, 452 00:22:55,680 --> 00:22:58,760 Speaker 4: so if you're just joining us, those are TSMC's US 453 00:22:58,760 --> 00:23:02,639 Speaker 4: listed shares. This is the contract manufacturer of chips to 454 00:23:02,840 --> 00:23:04,959 Speaker 4: the world, and what they said is, yeah, things are 455 00:23:04,960 --> 00:23:08,120 Speaker 4: pretty good. The outlook for twenty twenty five is pretty good, 456 00:23:08,119 --> 00:23:10,280 Speaker 4: and it was in stark contrasts from what we heard 457 00:23:10,359 --> 00:23:13,400 Speaker 4: earlier in the week from ASML, which is the company 458 00:23:13,400 --> 00:23:17,119 Speaker 4: that makes the machines that makes the chips. Netflix is 459 00:23:17,160 --> 00:23:19,320 Speaker 4: down a percentage point and I flag it because we're 460 00:23:19,320 --> 00:23:21,520 Speaker 4: going to talk about it later in the show. They 461 00:23:21,560 --> 00:23:25,320 Speaker 4: have earnings after the bell. Maybe that's some positioning. What 462 00:23:25,359 --> 00:23:26,800 Speaker 4: will we hear? Who knows? 463 00:23:26,920 --> 00:23:29,080 Speaker 3: Caro, I'm the here and now we're going to talk 464 00:23:29,119 --> 00:23:32,600 Speaker 3: about AI adoption ed in the financial sector, it's rapidly increasing. 465 00:23:32,600 --> 00:23:32,879 Speaker 2: It so all. 466 00:23:32,880 --> 00:23:36,240 Speaker 3: According to a new report by AI benchmarking platform evident Now, 467 00:23:36,480 --> 00:23:39,960 Speaker 3: the rate of AI utilization is actually happening twice as 468 00:23:40,000 --> 00:23:42,560 Speaker 3: fast though in the top performers, the top ten banks 469 00:23:42,600 --> 00:23:45,600 Speaker 3: of this index, let's dig in evidence CEO, Alexander and 470 00:23:45,640 --> 00:23:49,000 Speaker 3: Musaviside is with us now and Alexandra. It does seem 471 00:23:49,040 --> 00:23:50,679 Speaker 3: to be that if you've put a lot of talent 472 00:23:50,760 --> 00:23:53,080 Speaker 3: and focus and energy in R and D in you're 473 00:23:53,119 --> 00:23:53,720 Speaker 3: winning and you're. 474 00:23:53,600 --> 00:23:54,520 Speaker 6: Going to continue winning. 475 00:23:55,480 --> 00:23:57,119 Speaker 12: Yes, you are calin. 476 00:23:57,240 --> 00:23:57,400 Speaker 2: Yes. 477 00:23:57,440 --> 00:24:02,199 Speaker 12: We release the index today and as it's covering the 478 00:24:02,200 --> 00:24:05,840 Speaker 12: fifty largest banks the in US and Europe, and we 479 00:24:05,960 --> 00:24:07,959 Speaker 12: cover all of those aspects as in the looking at 480 00:24:07,960 --> 00:24:11,160 Speaker 12: the talent stack and the innovation levels that the banks 481 00:24:11,160 --> 00:24:14,440 Speaker 12: are pulling. We're also very carefully tracking what the banks 482 00:24:14,480 --> 00:24:17,840 Speaker 12: are reporting on in terms of their use cases and 483 00:24:17,840 --> 00:24:21,439 Speaker 12: their ROI and also looking at the responsible AI side. 484 00:24:21,920 --> 00:24:24,639 Speaker 12: And what we see is that the leaders are pulling 485 00:24:24,680 --> 00:24:28,520 Speaker 12: ahead and leading more at double the pace of the 486 00:24:28,520 --> 00:24:32,160 Speaker 12: rest of ten top ten ranked banks in the index 487 00:24:32,280 --> 00:24:35,440 Speaker 12: are moving at double pace from the rest of the 488 00:24:35,480 --> 00:24:38,560 Speaker 12: banks in the index, which should indicate and does indicate 489 00:24:38,880 --> 00:24:41,960 Speaker 12: bifurcation in the ranking, so the leaders are leading more 490 00:24:42,320 --> 00:24:45,960 Speaker 12: and the ones that are following or standing still are 491 00:24:46,000 --> 00:24:48,160 Speaker 12: actually falling behind in this race. 492 00:24:49,280 --> 00:24:53,800 Speaker 4: Now, Alexandra, I'm pretty certain that social media accounts like 493 00:24:53,840 --> 00:24:57,200 Speaker 4: Overheard on Wall Street and Wall Street Memes are listening 494 00:24:57,240 --> 00:25:01,960 Speaker 4: to this because there are two things here, banks and AI, 495 00:25:02,480 --> 00:25:02,920 Speaker 4: and in. 496 00:25:02,840 --> 00:25:04,760 Speaker 2: Our world that is everything. 497 00:25:05,160 --> 00:25:09,320 Speaker 4: So here's the question, what is it that makes a 498 00:25:09,440 --> 00:25:13,360 Speaker 4: bank good or not good at AI? 499 00:25:14,520 --> 00:25:17,240 Speaker 12: Well, we look at the strength of the capability of 500 00:25:17,280 --> 00:25:19,880 Speaker 12: the bank, so all of the aspects that goes into 501 00:25:19,880 --> 00:25:23,640 Speaker 12: a very strong ecosystem that moves a use case from 502 00:25:23,680 --> 00:25:27,240 Speaker 12: ideation to production. So a good bank is able to 503 00:25:27,320 --> 00:25:30,960 Speaker 12: move that through the system. So identify where you have 504 00:25:31,040 --> 00:25:34,400 Speaker 12: problems where AI can be a solution to those problems 505 00:25:34,600 --> 00:25:37,800 Speaker 12: and move them into a testing phase and then into 506 00:25:37,840 --> 00:25:42,720 Speaker 12: a production of a use case using GENAI. So good 507 00:25:42,760 --> 00:25:46,600 Speaker 12: bank can do that very quickly and all of the 508 00:25:46,640 --> 00:25:49,760 Speaker 12: elements that are needed to move the use case into 509 00:25:49,800 --> 00:25:53,959 Speaker 12: production swiftly and well and with the intended ROI have 510 00:25:54,119 --> 00:25:56,639 Speaker 12: those the strength of those component parts. 511 00:25:57,240 --> 00:25:59,960 Speaker 4: Okay, So we're showing JP Morgan, Capital One and our 512 00:26:00,080 --> 00:26:03,800 Speaker 4: BC and so based on your report, they are top 513 00:26:03,840 --> 00:26:07,160 Speaker 4: three performers. Is it that they just hired the best 514 00:26:07,560 --> 00:26:10,840 Speaker 4: computer scientists early, the best engineers early. What did they 515 00:26:10,840 --> 00:26:12,879 Speaker 4: do differently to the rest of the list. 516 00:26:12,960 --> 00:26:15,320 Speaker 12: Yeah, the common denominator of the leading banks is that 517 00:26:15,359 --> 00:26:18,359 Speaker 12: they went out early, and they went in big, and 518 00:26:18,400 --> 00:26:22,520 Speaker 12: they reorganized the bank to look like more like a 519 00:26:22,560 --> 00:26:25,920 Speaker 12: tech company, So an AI first business that has a 520 00:26:25,960 --> 00:26:29,399 Speaker 12: research lab, that is attracting the best talent, that is 521 00:26:29,480 --> 00:26:33,920 Speaker 12: reorganizing the bank from inside, looking at the data infrastructure, 522 00:26:34,000 --> 00:26:37,800 Speaker 12: looking at this question of build versus by looking at 523 00:26:37,840 --> 00:26:40,800 Speaker 12: the decision making whether that lies in the center of 524 00:26:40,840 --> 00:26:45,479 Speaker 12: the bank or it's federated, and striking that balance. So 525 00:26:45,560 --> 00:26:48,359 Speaker 12: what these leading banks did is that they went out early. 526 00:26:48,560 --> 00:26:52,359 Speaker 12: Jamie Diamond famously laid out then AI strategy for JP 527 00:26:52,440 --> 00:26:56,359 Speaker 12: Morgan in twenty eighteen and established a research lab and 528 00:26:56,440 --> 00:26:59,679 Speaker 12: really went to work on looking at how to reorganize 529 00:26:59,720 --> 00:27:02,560 Speaker 12: a bank so it could respond to the oncoming technology 530 00:27:02,680 --> 00:27:05,920 Speaker 12: swiftly and easily and get that time to production down 531 00:27:06,400 --> 00:27:11,000 Speaker 12: and really infuse the bank with AI thinking, an AI 532 00:27:11,119 --> 00:27:13,960 Speaker 12: mindset and a nimbleness. And that is what they're reaping 533 00:27:13,960 --> 00:27:17,440 Speaker 12: the benefits of now. Not that they're standing still, they're 534 00:27:17,480 --> 00:27:22,000 Speaker 12: moving at double pace of other banks continuously and to 535 00:27:22,000 --> 00:27:26,080 Speaker 12: spend more on AI, hire more people and continue the 536 00:27:26,119 --> 00:27:29,480 Speaker 12: research and the patents and the partnerships that are delivering 537 00:27:29,560 --> 00:27:33,919 Speaker 12: the impact that they hope to get from their AI investments. 538 00:27:34,320 --> 00:27:37,879 Speaker 12: Jamie Diamond said this year that the ROI from his 539 00:27:38,040 --> 00:27:41,400 Speaker 12: AI investments is at two billion dollars, So that's what. 540 00:27:41,600 --> 00:27:43,679 Speaker 3: Is making money. Who else is managing to see a 541 00:27:43,680 --> 00:27:45,919 Speaker 3: return on investment because everyone's desperate for that. 542 00:27:46,240 --> 00:27:49,960 Speaker 12: Everyone's measuring the impact internally. Only two banks and their 543 00:27:49,960 --> 00:27:54,000 Speaker 12: fifty the list of fifty are actually talking explicitly about 544 00:27:54,000 --> 00:27:57,840 Speaker 12: their ROI. That's JP Morgan and that's DBS out in Singapore. 545 00:27:58,280 --> 00:28:02,080 Speaker 12: But this is going to ramp up. So we think 546 00:28:02,160 --> 00:28:05,920 Speaker 12: that in the next twelve six to twelve maybe eighteen 547 00:28:05,920 --> 00:28:10,000 Speaker 12: months really as AI use cases move into production more 548 00:28:10,040 --> 00:28:14,240 Speaker 12: solidly and the pressure to show ROI off, that investment 549 00:28:14,520 --> 00:28:16,640 Speaker 12: is going to ramp up, and the ROI is being 550 00:28:16,640 --> 00:28:19,520 Speaker 12: measured internally in the banks, and we're seeing many of 551 00:28:19,520 --> 00:28:22,800 Speaker 12: the banks looking at how is it impacting on non 552 00:28:22,880 --> 00:28:25,360 Speaker 12: numerical terms and numerical terms. But we're going to see 553 00:28:25,359 --> 00:28:28,679 Speaker 12: a cascade of announcements of ROI. We think probably from 554 00:28:28,720 --> 00:28:30,040 Speaker 12: about six to twelve months on. 555 00:28:31,000 --> 00:28:33,520 Speaker 4: Well, that's what's so interesting. On the timing of the report. 556 00:28:33,560 --> 00:28:39,040 Speaker 4: We've just had banks earning season, so I guess, did 557 00:28:39,080 --> 00:28:42,920 Speaker 4: you see any early evidence that gets you excited for 558 00:28:43,080 --> 00:28:44,160 Speaker 4: future reports of. 559 00:28:44,200 --> 00:28:48,120 Speaker 12: ROI absolutely, absolutely, I mean it was also other factors 560 00:28:48,120 --> 00:28:50,479 Speaker 12: that were going on in the earnings calls were around 561 00:28:50,480 --> 00:28:53,440 Speaker 12: the rates and geopolitics, of course, but there were four 562 00:28:53,480 --> 00:28:57,000 Speaker 12: banks that were asked about their AI strategy and spend 563 00:28:57,040 --> 00:28:59,800 Speaker 12: and use cases and the impact is having and so 564 00:29:00,480 --> 00:29:03,720 Speaker 12: Jamie Diamond was asked. There was also Ted Pick from 565 00:29:03,800 --> 00:29:05,960 Speaker 12: Morgan Stanley was asked. B and Y and Bank of 566 00:29:06,000 --> 00:29:10,200 Speaker 12: America were asked specifically about what they were expecting to 567 00:29:10,240 --> 00:29:13,040 Speaker 12: see in terms of their AI investments and where they 568 00:29:13,080 --> 00:29:16,240 Speaker 12: see that having an impact. And Tedpick actually went into 569 00:29:16,280 --> 00:29:19,320 Speaker 12: a lot of detail on a tool that they've rolled 570 00:29:19,360 --> 00:29:23,880 Speaker 12: out across Morgan Stanley called debrief. That is something that 571 00:29:23,880 --> 00:29:25,920 Speaker 12: they're trying to put in the hands of many across 572 00:29:25,960 --> 00:29:30,120 Speaker 12: the bank, an AI service that helps manage meetings and 573 00:29:30,160 --> 00:29:31,800 Speaker 12: responses and so on. 574 00:29:31,880 --> 00:29:32,680 Speaker 3: But we must. 575 00:29:32,480 --> 00:29:35,920 Speaker 12: Remember that we're in the early innings. It is a 576 00:29:35,960 --> 00:29:40,280 Speaker 12: big and monumental transformation, and we're only two years in 577 00:29:40,360 --> 00:29:42,200 Speaker 12: so there's a lot to come and the tools are 578 00:29:42,200 --> 00:29:46,120 Speaker 12: getting better and better with much more reliability and speed. 579 00:29:46,680 --> 00:29:50,840 Speaker 12: But we're looking at in the next year or two 580 00:29:51,000 --> 00:29:54,880 Speaker 12: seeing what we call agentic ai come in and being 581 00:29:54,920 --> 00:29:57,960 Speaker 12: tested out and being a potential tool for the banks 582 00:29:58,000 --> 00:30:00,600 Speaker 12: to consider and are considering already. That's going to be 583 00:30:00,600 --> 00:30:02,760 Speaker 12: a real game changer on many accounts. 584 00:30:02,800 --> 00:30:05,480 Speaker 3: So agents front and center. What are they using and 585 00:30:05,520 --> 00:30:08,760 Speaker 3: they're using models? Are they building all on open ai largely? 586 00:30:09,040 --> 00:30:09,520 Speaker 6: And what are the. 587 00:30:09,440 --> 00:30:13,240 Speaker 12: Frustrations on the agaentic ai or no, Just more broadly. 588 00:30:13,000 --> 00:30:15,200 Speaker 3: What models have been deployed, are they building them from 589 00:30:15,200 --> 00:30:18,040 Speaker 3: within depending on our own large language models, deploying from 590 00:30:18,080 --> 00:30:19,520 Speaker 3: open ai and the competitors. 591 00:30:20,280 --> 00:30:22,360 Speaker 12: Most of the banks are looking at the variety of 592 00:30:22,400 --> 00:30:25,240 Speaker 12: models out there, So it could be open Ai Anthropic 593 00:30:25,320 --> 00:30:29,400 Speaker 12: that you were mentioning before, Mistral hugging face. Every model 594 00:30:29,440 --> 00:30:32,400 Speaker 12: has a uniqueness, and when you're looking at the variety 595 00:30:32,440 --> 00:30:34,520 Speaker 12: of use cases and problems that you're trying to solve 596 00:30:34,520 --> 00:30:37,480 Speaker 12: in the bank, there will be different types of models 597 00:30:37,520 --> 00:30:40,200 Speaker 12: that need to be deployed and fitted, and then the 598 00:30:40,240 --> 00:30:43,720 Speaker 12: building and the engineering of making it fit on your 599 00:30:43,920 --> 00:30:48,560 Speaker 12: own data used for your own systems in a particular 600 00:30:48,600 --> 00:30:51,680 Speaker 12: way that is unique for you depending on what type 601 00:30:51,680 --> 00:30:54,960 Speaker 12: of bank you are. You're at You're looking at these 602 00:30:55,040 --> 00:30:58,840 Speaker 12: variety of large language models that each have their own features, 603 00:31:00,120 --> 00:31:01,920 Speaker 12: but then they get bought in and then they get 604 00:31:02,280 --> 00:31:04,880 Speaker 12: implemented and fitted into the data and to the system 605 00:31:04,920 --> 00:31:05,480 Speaker 12: of the bank. 606 00:31:05,880 --> 00:31:08,160 Speaker 3: Alexandra are so pleased we come back to hear how 607 00:31:08,280 --> 00:31:12,120 Speaker 3: this latest evident index has gone evidence CEO Alexandra, who 608 00:31:12,200 --> 00:31:14,920 Speaker 3: is a visit on the latest in financial AI. Meanwhile, 609 00:31:14,920 --> 00:31:17,120 Speaker 3: coming up, Unity just announced that the latest version of 610 00:31:17,160 --> 00:31:20,920 Speaker 3: its gaming engineer software is out. CEO Matt Romberg joining 611 00:31:21,000 --> 00:31:28,400 Speaker 3: us next. This is Blue meg Technology. 612 00:31:35,160 --> 00:31:39,920 Speaker 4: Okay. Unity releases its latest developer platform today called Unity six. 613 00:31:40,200 --> 00:31:41,920 Speaker 4: It's a suite of tools and it's used by the 614 00:31:41,960 --> 00:31:46,320 Speaker 4: gaming industry and professionals to create, market and grow games 615 00:31:46,360 --> 00:31:50,600 Speaker 4: and VR experiences across a variety of platforms. Unity CEO 616 00:31:50,800 --> 00:31:53,680 Speaker 4: Matt Bromberg joins us now, and Matt, I've come to 617 00:31:53,800 --> 00:31:56,280 Speaker 4: learn in the last couple of years that loads of 618 00:31:56,360 --> 00:32:00,480 Speaker 4: video game developers, publishers, and video game industry people watch 619 00:32:00,560 --> 00:32:04,000 Speaker 4: this show, but many won't know what the engine is, 620 00:32:04,120 --> 00:32:07,880 Speaker 4: the tools are. Why is Unity six so important? And 621 00:32:07,920 --> 00:32:08,880 Speaker 4: welcome to the program. 622 00:32:08,960 --> 00:32:11,160 Speaker 1: Thank you so much and thank you for having me. Yeah. 623 00:32:11,280 --> 00:32:15,640 Speaker 13: Union is really a global platform that enables, enables and 624 00:32:15,720 --> 00:32:18,720 Speaker 13: sort of powers very large chunks of the video game industry. 625 00:32:18,760 --> 00:32:21,480 Speaker 13: For example, more than seventy percent of the mobile games 626 00:32:21,480 --> 00:32:22,600 Speaker 13: in the world are built on. 627 00:32:22,600 --> 00:32:24,560 Speaker 1: Top of our platform. 628 00:32:24,720 --> 00:32:28,000 Speaker 13: So it's a really important fundamental piece, and we're the 629 00:32:28,000 --> 00:32:31,520 Speaker 13: only company in the world can help developers come from 630 00:32:31,520 --> 00:32:34,720 Speaker 13: beginning to the end of the life cycle, so prototyping, 631 00:32:35,000 --> 00:32:38,120 Speaker 13: building the game, operating the game and live service, and 632 00:32:38,160 --> 00:32:40,800 Speaker 13: then going out to find users for that game, or 633 00:32:40,880 --> 00:32:43,560 Speaker 13: monetizing advertising inventory inside the game. 634 00:32:43,800 --> 00:32:45,400 Speaker 1: So it's really a full suite. 635 00:32:45,040 --> 00:32:48,440 Speaker 13: And we're really very close partners with game developers all 636 00:32:48,480 --> 00:32:51,440 Speaker 13: over the world, by the way, as well as non game. 637 00:32:51,480 --> 00:32:54,160 Speaker 5: Uses, right, and there are plenty. 638 00:32:54,160 --> 00:32:56,320 Speaker 3: We'll dig into the non game uses in a moment, 639 00:32:56,400 --> 00:32:58,600 Speaker 3: but really, when you think about those developers, you're having 640 00:32:58,640 --> 00:33:00,680 Speaker 3: to win back their trust. We'll try to focus really 641 00:33:00,680 --> 00:33:04,120 Speaker 3: on being a good partner. Because you're relatively relatively. 642 00:33:03,600 --> 00:33:04,400 Speaker 6: New to the role. 643 00:33:04,800 --> 00:33:06,959 Speaker 3: The previous CEO had to leave because there was a 644 00:33:06,960 --> 00:33:10,560 Speaker 3: pricing pain point. How are those relationships building, How your 645 00:33:10,560 --> 00:33:11,960 Speaker 3: discussions around Unity six. 646 00:33:12,080 --> 00:33:14,440 Speaker 13: Yeah, the first five months of my tenure have been 647 00:33:14,480 --> 00:33:16,600 Speaker 13: really exciting because it's given me an opportunity to fly 648 00:33:16,720 --> 00:33:18,880 Speaker 13: all over the world and spend time with as many 649 00:33:18,920 --> 00:33:21,600 Speaker 13: of our customers as I possibly can. I've been really 650 00:33:21,720 --> 00:33:25,200 Speaker 13: really excited about how willing they are to reconnect with us. 651 00:33:25,680 --> 00:33:29,920 Speaker 13: The ecosystem is really best when we do well, because 652 00:33:30,240 --> 00:33:32,360 Speaker 13: you're building. When you choose, you know you're building on 653 00:33:32,440 --> 00:33:34,440 Speaker 13: top of us for maybe ten or twenty years in 654 00:33:34,520 --> 00:33:37,240 Speaker 13: the operating game. It's really important that you trust us. 655 00:33:37,360 --> 00:33:40,240 Speaker 13: It's really important that we deliver what is needed. And 656 00:33:40,320 --> 00:33:42,440 Speaker 13: what customer has told us all over the world was, hey, 657 00:33:42,720 --> 00:33:45,200 Speaker 13: we're happy to pay you more, we just don't like 658 00:33:45,240 --> 00:33:46,280 Speaker 13: the way you've asked for it. 659 00:33:46,720 --> 00:33:48,520 Speaker 1: And that was the easiest decision. 660 00:33:48,160 --> 00:33:50,320 Speaker 13: In the world to reconnect with folks and find a 661 00:33:50,320 --> 00:33:53,120 Speaker 13: way to charge them that work for their business and 662 00:33:53,760 --> 00:33:55,160 Speaker 13: regenerated our relationships. 663 00:33:55,240 --> 00:33:57,840 Speaker 3: But there is tough competition, epic games Unreal Engine being 664 00:33:57,840 --> 00:33:59,280 Speaker 3: one of them, and there's open source. 665 00:33:59,040 --> 00:34:00,240 Speaker 6: Game engines as well. 666 00:34:00,000 --> 00:34:00,160 Speaker 4: Well. 667 00:34:00,640 --> 00:34:03,960 Speaker 3: How have you managed to retain or even build on 668 00:34:04,080 --> 00:34:05,040 Speaker 3: or lose market share? 669 00:34:05,120 --> 00:34:05,320 Speaker 2: Yeah. 670 00:34:05,440 --> 00:34:08,360 Speaker 13: Unity has been developing this platform for more than twenty years, 671 00:34:08,400 --> 00:34:10,719 Speaker 13: and as I said, the vast majority of. 672 00:34:10,719 --> 00:34:13,040 Speaker 1: Model developers are on the platform. We already know them. 673 00:34:13,120 --> 00:34:14,920 Speaker 13: So what we have to do is do things like 674 00:34:15,000 --> 00:34:19,360 Speaker 13: release Unity six right, better software, more performance software, but 675 00:34:19,480 --> 00:34:22,680 Speaker 13: software that's also stable and kind of stables a rock. 676 00:34:22,800 --> 00:34:23,880 Speaker 13: So if we keep. 677 00:34:23,680 --> 00:34:25,520 Speaker 1: Doing that, we feel really good about our position. 678 00:34:26,640 --> 00:34:26,879 Speaker 6: Matt. 679 00:34:26,920 --> 00:34:29,440 Speaker 4: A question from the developers and our audience is you 680 00:34:29,520 --> 00:34:33,600 Speaker 4: will raise prices right over time? Just explain the cadence 681 00:34:33,880 --> 00:34:36,719 Speaker 4: by what percentage and the rationale behind it. 682 00:34:37,200 --> 00:34:37,399 Speaker 1: Yeah. 683 00:34:37,440 --> 00:34:39,919 Speaker 13: So we announced that we were reverting to a very 684 00:34:40,000 --> 00:34:44,759 Speaker 13: typical kind of subscription model, just very very common in 685 00:34:44,760 --> 00:34:49,160 Speaker 13: the SaaS business, and we talked about making the software 686 00:34:49,239 --> 00:34:52,640 Speaker 13: more available for our community, so really small users that 687 00:34:52,680 --> 00:34:55,680 Speaker 13: don't generate meaningful revenue with our software, and then raising 688 00:34:55,960 --> 00:35:00,680 Speaker 13: some prices on our largest customers. And it's been the 689 00:35:01,120 --> 00:35:03,400 Speaker 13: news has been really really well received. As I said, 690 00:35:03,960 --> 00:35:06,120 Speaker 13: not even so much because of the price increase, but 691 00:35:06,160 --> 00:35:08,680 Speaker 13: because of the way we did it. Part of reconnecting 692 00:35:08,680 --> 00:35:11,719 Speaker 13: with our customers has been really spending time with them 693 00:35:11,719 --> 00:35:14,680 Speaker 13: to listen to them, to test our ideas with them, 694 00:35:15,040 --> 00:35:17,200 Speaker 13: and to not surprise them. And so the way we 695 00:35:17,320 --> 00:35:18,920 Speaker 13: rolled out the pricing and the nature of it has 696 00:35:18,920 --> 00:35:21,359 Speaker 13: again has been really well received. And we think, you know, well, 697 00:35:21,560 --> 00:35:24,520 Speaker 13: we'll just revert to some annualized increases, which is as 698 00:35:24,520 --> 00:35:25,080 Speaker 13: typical in. 699 00:35:25,000 --> 00:35:28,600 Speaker 1: Our industry, and you know there's there won't be uch trauma. 700 00:35:30,520 --> 00:35:33,160 Speaker 4: What's the Unity story going to be under your leadership? 701 00:35:33,200 --> 00:35:36,879 Speaker 4: There was a time where Unity was like, Okay, we're 702 00:35:36,920 --> 00:35:39,440 Speaker 4: going to be a metaverse company, and I get why. 703 00:35:39,960 --> 00:35:42,560 Speaker 4: It seems like you're doing hard reset back to being 704 00:35:42,600 --> 00:35:43,760 Speaker 4: a video games company. 705 00:35:44,000 --> 00:35:44,160 Speaker 11: Yeah. 706 00:35:44,160 --> 00:35:46,200 Speaker 13: I think one of the exciting things about UNI, but 707 00:35:46,280 --> 00:35:48,239 Speaker 13: also one of the challenging things is we sit at 708 00:35:48,280 --> 00:35:55,200 Speaker 13: the intersection of so many powerful forces, three D digital advertising, 709 00:35:55,719 --> 00:35:57,959 Speaker 13: interactive entertainment, it's just. 710 00:35:58,360 --> 00:35:59,480 Speaker 1: The metaverse AI. 711 00:36:00,320 --> 00:36:02,880 Speaker 13: You could be forgiven for wanting to pursue lots of 712 00:36:03,239 --> 00:36:06,560 Speaker 13: wonderful things, But to your point, what we've wanted to 713 00:36:06,560 --> 00:36:08,759 Speaker 13: focus on is making sure that we deliver for our 714 00:36:08,840 --> 00:36:12,280 Speaker 13: core customer set in video gaming. Make sure we deliver 715 00:36:12,480 --> 00:36:15,799 Speaker 13: rock solid software that they can build their businesses on, 716 00:36:16,200 --> 00:36:18,400 Speaker 13: that they can use to help acquire new users and 717 00:36:18,480 --> 00:36:21,360 Speaker 13: sell their advertising inventory. And to make sure we nail 718 00:36:21,440 --> 00:36:24,759 Speaker 13: that so that folks trust us, that we reconnect and 719 00:36:24,800 --> 00:36:26,760 Speaker 13: then you know, once people trust you, then they beget 720 00:36:26,760 --> 00:36:29,799 Speaker 13: you can begin to dream and make all kinds of 721 00:36:30,120 --> 00:36:30,960 Speaker 13: other investments. 722 00:36:31,440 --> 00:36:33,120 Speaker 6: Oh, other investments. 723 00:36:33,400 --> 00:36:36,680 Speaker 3: Would they be inorganic rather than organic? You looking at 724 00:36:36,760 --> 00:36:40,240 Speaker 3: developing genitive AI offerings by buying partners rather than building 725 00:36:40,280 --> 00:36:40,560 Speaker 3: your own. 726 00:36:40,680 --> 00:36:42,560 Speaker 13: Yeah, our focus right now is on building our own 727 00:36:42,600 --> 00:36:45,000 Speaker 13: business in general. But I will say that AI is 728 00:36:45,040 --> 00:36:48,080 Speaker 13: a really important piece for us. I think as a 729 00:36:48,200 --> 00:36:50,319 Speaker 13: platform we're really interested. 730 00:36:50,040 --> 00:36:52,280 Speaker 1: In being able to change the economics of the industry. 731 00:36:52,360 --> 00:36:54,080 Speaker 13: So the best thing that could happen to a game 732 00:36:54,120 --> 00:36:57,160 Speaker 13: developer is for us to create a tool that enables 733 00:36:57,160 --> 00:36:59,320 Speaker 13: them to make games more quickly, more efficiently. 734 00:36:59,600 --> 00:37:02,360 Speaker 1: That chaine is how many games they can make and 735 00:37:02,480 --> 00:37:03,960 Speaker 1: change the real calculus for them. 736 00:37:04,000 --> 00:37:07,640 Speaker 13: So as a platform developer, we use AI to obfuscate 737 00:37:07,760 --> 00:37:11,120 Speaker 13: the complexity of our software and help them move more quickly. 738 00:37:11,360 --> 00:37:13,360 Speaker 1: Then that's the best thing we could possibly deliver. 739 00:37:14,400 --> 00:37:16,520 Speaker 3: We didn't hear that you're not going to buy anyone. 740 00:37:16,560 --> 00:37:18,640 Speaker 3: You said you go focus on organic, but would you 741 00:37:18,680 --> 00:37:19,200 Speaker 3: buy someone? 742 00:37:19,400 --> 00:37:22,200 Speaker 13: We are really focused on what we're doing right now 743 00:37:22,239 --> 00:37:24,719 Speaker 13: and being better, Matt. 744 00:37:24,920 --> 00:37:27,480 Speaker 4: I want to just bring this all together. I think 745 00:37:27,520 --> 00:37:30,000 Speaker 4: the question from this point is how to video games 746 00:37:30,080 --> 00:37:31,120 Speaker 4: change Unity? 747 00:37:31,160 --> 00:37:31,440 Speaker 2: Six? 748 00:37:31,520 --> 00:37:35,960 Speaker 4: Great? AI great? We just want better games. Can you 749 00:37:36,120 --> 00:37:38,000 Speaker 4: promise that that's going to be the case. 750 00:37:38,080 --> 00:37:40,200 Speaker 13: I can promise I'm going to tell you, well, I 751 00:37:40,239 --> 00:37:42,440 Speaker 13: worked in the video game business, making video games for 752 00:37:42,480 --> 00:37:44,960 Speaker 13: more than fifteen years before I got to Unity, and 753 00:37:45,040 --> 00:37:47,600 Speaker 13: I know that there's a lot of talk about where 754 00:37:47,600 --> 00:37:49,640 Speaker 13: we are as an industry, and perhaps you know with 755 00:37:50,080 --> 00:37:52,400 Speaker 13: growth is flattening, But I think it's really important to 756 00:37:52,400 --> 00:37:55,080 Speaker 13: remember that the video game business is a very big, 757 00:37:55,160 --> 00:37:59,600 Speaker 13: vibrant business. It's bigger than streaming video, streaming music, and 758 00:38:00,000 --> 00:38:03,000 Speaker 13: Bible box office combined. And sometimes when you get late 759 00:38:03,000 --> 00:38:05,800 Speaker 13: in the hardware cycle, you start to see some flattening 760 00:38:05,840 --> 00:38:08,080 Speaker 13: as we are now. But one thing I can promise 761 00:38:08,160 --> 00:38:11,040 Speaker 13: you is that the creative geniuses in our business are 762 00:38:11,080 --> 00:38:13,760 Speaker 13: going to create amazing interactive entertainment. 763 00:38:14,120 --> 00:38:15,840 Speaker 1: They're going to release that entertainment. 764 00:38:16,040 --> 00:38:18,200 Speaker 13: There are going to be new platforms, and growth is 765 00:38:18,239 --> 00:38:20,040 Speaker 13: going to return out to our market. 766 00:38:21,120 --> 00:38:23,799 Speaker 4: Matt Bromberg, Unity CEO, thank you so much for joining 767 00:38:23,840 --> 00:38:34,919 Speaker 4: us here on Bloombog Technology. Cable companies are not only 768 00:38:34,960 --> 00:38:38,759 Speaker 4: seeing a drop in TV subscribers, they're also struggling with broadband. 769 00:38:38,880 --> 00:38:42,560 Speaker 4: Look at Charters broadband subscription data for the past six quarters. 770 00:38:42,880 --> 00:38:45,799 Speaker 4: According to Bloomberg Intelligence, cable providers may lose up to 771 00:38:45,840 --> 00:38:49,600 Speaker 4: four hundred and eighty one thousand Internet customers in the 772 00:38:49,640 --> 00:38:52,239 Speaker 4: third quarter. That would be the worst ever decline for 773 00:38:52,280 --> 00:38:54,960 Speaker 4: the industry, and let's say it's due to the expiration 774 00:38:55,320 --> 00:38:59,120 Speaker 4: of a government subsidy program as phone companies bundle home 775 00:38:59,160 --> 00:39:01,040 Speaker 4: internet while it's offerings. 776 00:39:01,200 --> 00:39:06,640 Speaker 3: Carrot Trouble for cable providers also extend to arrival Netflix, 777 00:39:06,640 --> 00:39:10,319 Speaker 3: which reports to earnings today. Shares have tripled since May 778 00:39:10,320 --> 00:39:13,200 Speaker 3: of twenty twenty two, hitting a record high earlier this month. 779 00:39:13,280 --> 00:39:16,960 Speaker 3: But can we sustain this? Maybe revenue growth is slowing 780 00:39:16,960 --> 00:39:19,799 Speaker 3: a little bit. We've seen the password crackdowns already. Has 781 00:39:19,800 --> 00:39:23,359 Speaker 3: that been priced into where we're currently standing? Pretty mugs, 782 00:39:23,400 --> 00:39:24,840 Speaker 3: Phelix Jillette. I'm not going to ask you as to 783 00:39:24,840 --> 00:39:27,440 Speaker 3: whether we should be trading at this valuation, but this 784 00:39:27,600 --> 00:39:30,080 Speaker 3: set of numbers fiscal third quarter do look like they're 785 00:39:30,080 --> 00:39:32,600 Speaker 3: going to remain strong. Four and a half million subscribers added. 786 00:39:32,640 --> 00:39:35,360 Speaker 3: Is that enough to keep us all joyant about Netflix? 787 00:39:35,520 --> 00:39:35,719 Speaker 2: Yeah? 788 00:39:35,760 --> 00:39:37,360 Speaker 14: I mean, I think for the time being, four and 789 00:39:37,360 --> 00:39:39,160 Speaker 14: a half million is pretty solid growth. 790 00:39:39,200 --> 00:39:40,719 Speaker 2: It's down from third. 791 00:39:40,560 --> 00:39:43,320 Speaker 14: Quarter last year, which was a closer to nine million, 792 00:39:44,440 --> 00:39:46,239 Speaker 14: but a huge run up in the side price that 793 00:39:46,239 --> 00:39:48,359 Speaker 14: we've seen since May of twenty twenty two is really 794 00:39:48,400 --> 00:39:51,080 Speaker 14: driven by two things. Yeah, it was the password crackdown, 795 00:39:51,680 --> 00:39:54,439 Speaker 14: which has been very effective. It's also been driven by 796 00:39:54,480 --> 00:39:58,080 Speaker 14: the introduction into this lower price add tier, right, and 797 00:39:58,120 --> 00:40:00,480 Speaker 14: so I think that's really what to keep an Ion 798 00:40:00,640 --> 00:40:04,680 Speaker 14: going forward is how many subscribers do they have in 799 00:40:04,719 --> 00:40:07,880 Speaker 14: that advertising tier. How much is the advertising revenue growing. 800 00:40:08,239 --> 00:40:10,440 Speaker 14: I think a big part of that is Netflix is 801 00:40:10,600 --> 00:40:15,399 Speaker 14: also you know, they're going more heavily into live programming, right. 802 00:40:16,160 --> 00:40:19,560 Speaker 14: In order to get advertisers and viewers SYNCD up, you 803 00:40:19,600 --> 00:40:22,040 Speaker 14: want to have live events, and the more we've seen 804 00:40:22,239 --> 00:40:24,680 Speaker 14: in the past year has been you know, all this 805 00:40:25,560 --> 00:40:29,880 Speaker 14: increase in live production. You had the Joe Rogan comedy special, 806 00:40:29,920 --> 00:40:33,080 Speaker 14: live comedy special over the summer, hot dog eating contest. 807 00:40:33,200 --> 00:40:36,160 Speaker 14: That's all pretty small compared to I think what's going 808 00:40:36,200 --> 00:40:38,160 Speaker 14: to be coming down the pipeline for Netflix in the 809 00:40:38,160 --> 00:40:40,760 Speaker 14: next couple of years, which is really live sports. 810 00:40:41,960 --> 00:40:43,799 Speaker 4: When you and I were hanging out in Hollywood last 811 00:40:43,800 --> 00:40:47,200 Speaker 4: week rubbing shoulders with all the celebrities and movie makers, 812 00:40:47,600 --> 00:40:50,600 Speaker 4: I guess what they weren't talking about so much was 813 00:40:51,080 --> 00:40:54,160 Speaker 4: some kind of crisis when we were one year ago. 814 00:40:54,719 --> 00:40:57,320 Speaker 4: Are they looking to the horizon for a crisis. 815 00:40:58,920 --> 00:41:01,440 Speaker 14: I mean, I think like everyone's happy that the strikes 816 00:41:01,480 --> 00:41:05,520 Speaker 14: are over, and you know, we're in the bell tightening 817 00:41:05,560 --> 00:41:09,280 Speaker 14: phase of Hollywood. It feels like the major crisis has passed, 818 00:41:09,320 --> 00:41:12,000 Speaker 14: but there's still production is still way down from what 819 00:41:12,040 --> 00:41:16,120 Speaker 14: it was during the peak TV years, you know, in 820 00:41:16,200 --> 00:41:19,880 Speaker 14: terms of what Netflix has come in. You know, I'm 821 00:41:19,960 --> 00:41:22,759 Speaker 14: still curious about their gaming investments. They had to shake 822 00:41:22,840 --> 00:41:25,400 Speaker 14: up in their gaming department over the summer. They haven't 823 00:41:25,440 --> 00:41:28,240 Speaker 14: had much success there. You know, they're going to point 824 00:41:28,280 --> 00:41:31,080 Speaker 14: to big things, right, you know, like Squeed Game two 825 00:41:31,239 --> 00:41:31,880 Speaker 14: next quarter. 826 00:41:32,920 --> 00:41:35,880 Speaker 3: Okay, yeah, plenty to get excited about in terms of 827 00:41:35,880 --> 00:41:38,080 Speaker 3: the content on deck, Felix Ja let me thank you. 828 00:41:38,320 --> 00:41:40,359 Speaker 3: That does it for this edition of Bloomberg Technology yet. 829 00:41:41,080 --> 00:41:43,160 Speaker 4: Yeah, good show, if I say so myself. Recap on 830 00:41:43,200 --> 00:41:45,440 Speaker 4: the podcast. You know where to find it. This is 831 00:41:45,480 --> 00:41:47,680 Speaker 4: Bloomberg Technology.