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Speaker 1: From Markhard We're Innovation of Money and Power colle in

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Speaker 1: Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

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Speaker 3: I'm Caroline Heid at Bloomberg's at World Headquarters in New York,

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Speaker 3: and I'm Ed Ludlow in San Francisco.

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Speaker 4: This has Beenberg Technology coming up.

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Speaker 3: Full market coverage of a head of course, the largest

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Speaker 3: US maker of chip making machinery fails to impress investors.

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Speaker 3: What does it say around the rest of the chip sector.

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Speaker 3: We talk applied materials.

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Speaker 5: Plus open Ai and Reddit announce a partnership to bring

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Speaker 5: its content to chat, GPT and other new products.

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Speaker 3: Details ahead, and we sit down with the CEO of

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Speaker 3: cloud computing company core Weave as it secures seven and

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Speaker 3: a half.

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Speaker 6: Billion dollars in private debt.

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Speaker 3: All that and so much more coming up first, as

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Speaker 3: check in on a market that has been ramping higher

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Speaker 3: for four straight weeks, the longest winning street we see

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Speaker 3: for the SMP and indeed the Nasdaq in well, at

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Speaker 3: least since February.

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Speaker 6: We're actually seeing the best months.

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Speaker 3: So far for the entire year, and we're seeing again

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Speaker 3: just tentative gains. We've called some of those gains as

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Speaker 3: the week has progressed, but nevertheless still up almost ten

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Speaker 3: points on the Nasdaq stock six hundred over in Europe.

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Speaker 3: Less optimism on the day, we're off by a tenth

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Speaker 3: of a percent, but again we've seen gains throughout the

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Speaker 3: course of the week, and look, we're still near or

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Speaker 3: at record highs for a.

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Speaker 6: Lot of these benchmarks.

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Speaker 3: Looking at ten year yields, actually just selling off a

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Speaker 3: little bit on Neil's just pushing up somewhat, but this

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Speaker 3: has been a reassessment of the Federal Reserve and whether

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Speaker 3: we can still see cuts coming in for this year.

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Speaker 3: Some of that data just showed a healthy cooling of

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Speaker 3: the US economy. Move on, have a look at what's

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Speaker 3: happened over the last five days, and we're looking at

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Speaker 3: crypto and look on the up and up more than

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Speaker 3: nine percent. We're at six hundred and seven, a way

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Speaker 3: off far high as their ed but still notable risk

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Speaker 3: on sentiment throughout this week. When it comes to crypto,

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Speaker 3: what have you got on the micro Well.

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Speaker 5: Let's start, we've read it and read it is up

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Speaker 5: a lot, flirting with a record higher bound for four

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Speaker 5: fourteen percent. Since it's ipo, which you know is in March.

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Speaker 5: So the deal with open ai is kind of a

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Speaker 5: two way deal. Open ai basically licenses Reddit forum posts

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Speaker 5: to get that text data's train models, but it can

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Speaker 5: also show Reddit posts in the consumer facing products. And

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Speaker 5: what does Reddit get out of it, Well, according to analysts,

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Speaker 5: like forty million dollars of high margin revenue every year,

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Speaker 5: which is great.

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Speaker 4: But also they are.

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Speaker 5: Talking about building ai products into the forum on top

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Speaker 5: of open AI's large language models. Let's talk about that

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Speaker 5: later in the show. The other name we're talking about

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Speaker 5: is in the chip space applied materials. As you point out,

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Speaker 5: the story here is about a company that makes the

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Speaker 5: machines that makes the chips. It sells to the contract

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Speaker 5: manufacturers like TSMC higher three tensven percent. It beat estimates,

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Speaker 5: but at the upper range of the estimates that were

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Speaker 5: given by the street it fell a little short. The

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Speaker 5: question is where are we at in chip demand through

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Speaker 5: the proxy of the companies that buy the machines that

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Speaker 5: make the chips.

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Speaker 3: What a fun story it is, because ultimately, is this

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Speaker 3: a bell weather? Is this some sort of ability for

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Speaker 3: us to have a bird side perspective?

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Speaker 6: Wear's hot, wet's not?

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Speaker 3: Maybe not In autos, maybe not in connected devices, but

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Speaker 3: certainly all things AI is still driving us. And what

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Speaker 3: about the China exposure ed and pleased to say we

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Speaker 3: can go broadly across the sector with Advisor's capital management

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Speaker 3: partner and portfolio manager, Joe am Poenie. Always enjoyed to

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Speaker 3: have you with us, Joeanne. And look, this is a

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Speaker 3: chip equipment company. But what are you seeing in terms

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Speaker 3: of where we are in chips more broadly?

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Speaker 6: Right now?

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Speaker 7: Yeah, good morning guys.

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Speaker 8: Apply Materials results better than expected, but their guidance was

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Speaker 8: a little bit soft, and in this kind of an economy, this.

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Speaker 7: Kind of a market, that doesn't go over too well.

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Speaker 8: But when you look into what Applied said, they indicated

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Speaker 8: continued strong demand from several of their end markets, except

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Speaker 8: for China. Obviously with the US trade policy really trying

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Speaker 8: to crack down on exports that would enable China to

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Speaker 8: have its own leading edge chip business. Applied Materials find

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Speaker 8: yourself in the cross fair, no surprise, and so that

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Speaker 8: part of their business is going to fall off pretty sharply.

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Speaker 8: But what we're seeing is that global demand for equipment

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Speaker 8: because of the global demand for high end chips for

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Speaker 8: AI and other things is still going to remain robust

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Speaker 8: for many years to come.

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Speaker 4: That's really interesting.

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Speaker 5: So around on Monday, I'm going to speak in a

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Speaker 5: conversation with Jensen Wang, Michael Dell, and Bill McDermott for

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Speaker 5: twenty five minutes, and what I'm trying to get out

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Speaker 5: of it is this idea of when do we move

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Speaker 5: beyond AI as a market AI accelerators just being the hyperscalers.

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Speaker 4: So think about what you just said in demand, But.

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Speaker 5: As far as I see, that's the only place it's going,

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Speaker 5: and it's largely in the US. What's your kind of

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Speaker 5: counter to that.

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Speaker 8: Well, what we're seeing, I believe is that there's a

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Speaker 8: demand beyond just the US hyperscalers for other entities to

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Speaker 8: have their own AI training and inference capabilities, notably countries

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Speaker 8: that want want to keep their data private, and so

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Speaker 8: we're going to see entities there develop the infrastructure to

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Speaker 8: run those models and to deploy those models. So your

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Speaker 8: Jensen has mentioned that in the past, you could try

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Speaker 8: to get some numbers out of him for how big

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Speaker 8: that is currently and how big he expects it to be,

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Speaker 8: because it should be the case that wants the hyperscalers

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Speaker 8: build up their capabilities for training and for inference that

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Speaker 8: will see that other end the sovereign investments or even

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Speaker 8: company specific investments where again data is likely to be

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Speaker 8: kept private, become the next buyer.

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Speaker 4: You know what's so interesting?

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Speaker 5: And maybe I'm getting a bit in the weeds here,

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Speaker 5: but like think about Dell's history, they're really good at

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Speaker 5: selling to SMEs and governments. They're great sales channels that

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Speaker 5: maybe like Nvidia, has never really operated him. And that's

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Speaker 5: the bit I'm trying to scratch away at. Like everyone

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Speaker 5: else in the world who wants a part of the

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Speaker 5: AI story, how do they actually do it right? From

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Speaker 5: their CAPEX spend And where do you Jo Anthony position

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Speaker 5: yourself if you think that they're going to get there right?

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Speaker 8: So the others that they're going to do it, They're

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Speaker 8: going to have to build the infrastructure ed if I

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Speaker 8: understand your question correctly, And so whether it's through a

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Speaker 8: Dell or a super micro or an HP or an IBM, right,

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Speaker 8: they're going to have to bring the hardware in which

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Speaker 8: will be powered by chips from Nvidia and the future

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Speaker 8: AMD and perhaps.

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Speaker 7: In the future from some of these startups we're hearing about.

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Speaker 8: And how we position is we look at the fundamental

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Speaker 8: suppliers that make it all possible, which are the chip

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Speaker 8: guys and Vidia, AMD, Broadcom working in conjunction with Alphabet

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Speaker 8: and others to bring the chips capable of this high

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Speaker 8: end computing.

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Speaker 7: That's kind of a clean way to invest.

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Speaker 8: But also then on the application side, companies that are

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Speaker 8: rolling out the capabilities to deploy AI like a service.

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Speaker 7: Now is one example, but it's broader than that. It's

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Speaker 7: beyond the technology sector, it's into industrials.

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Speaker 9: It's into healthcare.

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Speaker 8: So you really have to dig deep to find those

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Speaker 8: individual companies that are being successful at this early stage

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Speaker 8: and starting to deploy the AI capabilities that.

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Speaker 9: Are just emerging.

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Speaker 3: I'm loving this entire show because we're going to many

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Speaker 3: ways pick away all these different ways of telling the story.

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Speaker 3: We've got core Weave coming on, of course, one of

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Speaker 3: these new hyperscale entrance almost offering new data center footprints

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Speaker 3: that's going to be closer to the companies that need

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Speaker 3: the access to the compute.

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Speaker 6: You're then also going to be.

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Speaker 3: Discussing this new AI push towards regulation, but ultimately standards

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Speaker 3: and investment coming from the US government. We just had

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Speaker 3: Chuck Schumer, of course, right, that key AI thought leadership piece.

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Speaker 3: Basically there's no real regulation in it yet. Will we

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Speaker 3: be delving into that. But all of this very much

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Speaker 3: focuses on the US and bits China and the worry there.

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Speaker 3: But what about Europe, what about Japan? What about other

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Speaker 3: areas that you can invest geographically?

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Speaker 7: Joanne, Yeah, I mean asking.

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Speaker 8: One of the big trends that I'm going that's related

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Speaker 8: to this space is the desire for let's call it

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Speaker 8: self sufficiency regionally to have for countries and regions like

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Speaker 8: the US and Europe to have their own capability to

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Speaker 8: manufacture those high end chips.

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Speaker 7: Whether regulation and how regulation evolves.

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Speaker 8: Over time is really hard a hard thing to sort

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Speaker 8: out at this point, and so we don't try to

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Speaker 8: make bets based on regulation changes.

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Speaker 7: It's just sort of too.

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Speaker 8: Early to know what Chuck Schumer's and that bipartisan groups

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Speaker 8: proposals will actually mean. So instead, again, what we can

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Speaker 8: do is look at how the subsidies are.

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Speaker 10: Evolving and how the tariff barriers and restrictions are evolving

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Speaker 10: to push the manufacturing of advanced semiconductors around the world.

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Speaker 10: And what it means, right is we're going to get

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Speaker 10: more chip manufacturing, which is good for the equipment suppliers

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Speaker 10: by the way, and probably get some cheaper chips as

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Speaker 10: a result of a bit of overcapacity over time.

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Speaker 3: When you therefore look at some of the startups coming in,

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Speaker 3: when you think about where to allocate to, where's already done?

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Speaker 6: Well?

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Speaker 3: Is in Vidio ahead of its earnings next week, still

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Speaker 3: at the right valuation point to enter.

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Speaker 11: Well?

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Speaker 8: You know, a company like in Nvidia has many years

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Speaker 8: of growth head of it, and its valuation reflects the

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Speaker 8: expectations about how high that growth will be and for

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Speaker 8: how long it can be maintained. And right now, and

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Speaker 8: Video with its chip technology is well ahead of competition. Yes,

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Speaker 8: a m D is coming along, and they will they

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Speaker 8: will definitely have a good chip in the race. And

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Speaker 8: we talked about Broadcom with their teaming up with Google

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Speaker 8: and others. But ultimately, and Vidia has not only the hardware,

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Speaker 8: the most advanced chips with the most capability for training AI.

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Speaker 12: But it also has the software that is needed to

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Speaker 12: make all of that work, that Coupa software that it's

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Speaker 12: been developing over decades. So it really does give Nvidia

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Speaker 12: a substantial and defensive lead for several years to come.

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Speaker 7: That doesn't mean that we're not going to get.

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Speaker 8: Newsflow that disturbs those long term forecasts, and that could

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Speaker 8: cause disruptions in the stock price. And that's why we

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Speaker 8: think for Nvidia to be helped by clients. In our

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Speaker 8: growth portfolio, it's a substantial position, But in our balanced strategy,

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Speaker 8: where clients have a perhaps a more conservative view on

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Speaker 8: what their portfolios need to do over time, it's a

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Speaker 8: smaller position because of the volatility that we're likely to

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Speaker 8: see as expectations can be disrupted at any time.

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Speaker 5: M Foinie, how are you and Advisor's Capital using AI

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Speaker 5: at home and at work?

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Speaker 8: Well, I know from talking to the marketing guys, for example,

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Speaker 8: that they're using AI to create We just had a conference,

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Speaker 8: for example, they created a lot of the background material

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Speaker 8: for the conference, the images. I worked with a colleague

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Speaker 8: recently to do a podcast on behavioral finance, and he

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Speaker 8: generated notes using AI.

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Speaker 7: Questioning, Hey, what did Danny Kahneman contribute?

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Speaker 8: And so I saw all these great notes, I'm like, wow,

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Speaker 8: that's it's impressive. He said he did it in fifteen minutes.

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Speaker 8: So it's an incredible time saver for folks. Quickly needing

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Speaker 8: to generate content or get quick answers to questions and

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Speaker 8: to generate images for marketing materials.

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Speaker 5: J am Feenie Advisors Capital Management. Great to have you

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Speaker 5: back on the show. Thank you so much. Now coming

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Speaker 5: up from Bloomberg Technology, we have all the details on

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Speaker 5: that open Ai and Reddit relationship and a new partnership.

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Speaker 5: Stay with us, We will be right back. This is

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Speaker 5: Bloomberg Technology. So open ai unveiled a partnership with Reddit

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Speaker 5: that will bring the social networks content to chat, GPT

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Speaker 5: and other products, but also allow Reddit to add new

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Speaker 5: AI features to its online communities. That's bringing Bloomberg Sharen

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Speaker 5: Gafari for more a bit of a scramble last night

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Speaker 5: because the market reacted right. Reddit shares now really high.

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Speaker 5: Just give us the basics of the deal in both directions.

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Speaker 3: Sure.

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Speaker 13: So open ai, which has kind of an insatiable desire

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Speaker 13: for data right to train its models and to just

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Speaker 13: show data within its chat GPT app, will now have

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Speaker 13: access to Reddit posts, and that's going to happen through

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Speaker 13: the Reddit api. So you know, whatever people post on Reddit,

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Speaker 13: open ai now has the legal right through this deal

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Speaker 13: to actually use that in its products and to train

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Speaker 13: its products on Reddit side. You know, they are presumably

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Speaker 13: getting some kind of financial benefit from this, although the

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Speaker 13: terms of the deal have not been disclosed.

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Speaker 3: Also, perhaps they fold in open AI's own large language

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Speaker 3: model and AI applications within the use of Reddit. It

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Speaker 3: seems as though there's going to be advertising involved, and

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Speaker 3: the question to me sharing is what do they get

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Speaker 3: that's different versus the Google agreement. We know the amount

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Speaker 3: of money it seems that they got from Alphabet already,

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Speaker 3: but why therefore so embed open ai from an actual

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Speaker 3: AI architecture perspective and not Google's.

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Speaker 13: I think that these media companies, social media companies, publishers,

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Speaker 13: they're kind of looking to just get the most value

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Speaker 13: that they can out of the data that they have, right,

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Speaker 13: so I think the deals are very similar. I think,

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Speaker 13: you know, we just have a little bit more information

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Speaker 13: about how much the value of that Google deal was

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Speaker 13: on the advertising front, because there was a mention in

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Speaker 13: there in their release I actually clarified with open Ai.

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Speaker 13: So all that means is that open ai is actually

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Speaker 13: going to place ads on Reddit as part of the deal,

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Speaker 13: So we're not seeing a kind of deeper ad integration

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Speaker 13: that's that some may have had thought.

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Speaker 6: Really fascinating.

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Speaker 3: And I think also we've got to remember the history

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Speaker 3: of Reddit and Sam Altman. Even though it says really

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Speaker 3: that it is Brad Lightcap that forged this deal, certainly

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Speaker 3: is one of the key investors in Reddit at the IPO.

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Speaker 3: Those ties go deep, and the fact that he is

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Speaker 3: interrom CEO for a short while putting the Suran Gafari.

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Speaker 3: We thank you so much for talking us through the

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Speaker 3: latest deal. Meanwhile, let's talk about the space race that's

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Speaker 3: upon us, because we're just so you can look at

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Speaker 3: Elil Musk's Starlink.

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Speaker 6: It's launched, friends of competition for space dominance. Just take

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Speaker 6: a listen.

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Speaker 14: The largest single constellation of satellites orbiting our planet is

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Speaker 14: run by a mercurial individual who needs no introduction. It's

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Speaker 14: this guy. It achieves this by maintaining a vast relay

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Speaker 14: network in low Earth orbit. That's the area higher than

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Speaker 14: a jetliner but below a GPS satellite.

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Speaker 15: Right now, Starlink has more than five six hundred satellites

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Speaker 15: in orbit.

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Speaker 14: And it accomplished all this in less time than it

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Speaker 14: took James Cameron to make a second Avatar movie.

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Speaker 15: At one point, SpaceX and vision launching up to forty

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Speaker 15: two thousand satellites.

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Speaker 14: But this speed and relative success has raised eyebrows, concerned

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Speaker 14: ones in government and excited ones in the boardrooms of

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Speaker 14: potential rivals.

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Speaker 15: It's essentially a company trying to disrupt a somewhat complacent marketplace.

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Speaker 5: So you can catch the full thing from Bloomberg originals

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Speaker 5: at Bloomberg dot com.

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Speaker 4: It's it must kind of watch.

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Speaker 5: And the speed and relative success of elon musk Starlink

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Speaker 5: has encouraged the deep pocketive rivals like Amazon co founder

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Speaker 5: Jeff Bezos and his Blue Origin, which is actually slated

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Speaker 5: to resume space tourist flights this Sunday after it had

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Speaker 5: stopped crude operations two years ago following a mid flight mishap.

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Speaker 5: I want to go out to Chicago and Bloombo's Kyle Porter.

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Speaker 4: Let's start with the starlink doc.

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Speaker 16: Right.

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Speaker 5: That was one minute, but it's a longer thing. Tell

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Speaker 5: us about the other items that you covered off in it.

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Speaker 17: Well, thank you for having me on ed. We cover

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Speaker 17: quite a bit of ground in those seven minutes. We

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Speaker 17: look into how the service performs, Elon's plans for growth

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Speaker 17: of the service, potential rivals, and as that one minute

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Speaker 17: alluded to difficulties geopolitical and technical.

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Speaker 4: With the service.

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Speaker 3: Let's talk about technical difficulties because there's been a few

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Speaker 3: launches that have been delayed of late. We're also anticipating

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Speaker 3: the re launch or well certain regalvanization of Blue Origin

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Speaker 3: this weekend.

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Speaker 6: Things have been stopped start.

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Speaker 17: They certainly have a little bit, and Elon's been a

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Speaker 17: little bit frustrated in his getting approvals to build out

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Speaker 17: the size of the network that he wants. Starlink's biggest

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Speaker 17: problem is getting satellites in the air. Doing things in

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Speaker 17: low earth orbit is fantastic and it decreases the latency,

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Speaker 17: which is the time it takes for the signal to

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Speaker 17: get back and down to your dish. However, you really

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Speaker 17: need to think of it like filling off a bath.

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Speaker 17: You need an awful lot more satellites in the air

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Speaker 17: to stop your service slimming down. Frankly, they're not doing

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Speaker 17: it as quickly as they'd like.

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Speaker 5: Kyle, my understanding is you and I are under orders

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Speaker 5: to be awake very early this Sunday because Blue Origin

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Speaker 5: will try to launch its tourism offering again after two years.

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Speaker 4: Just give us the basics of that mission.

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Speaker 17: Yes, well you'll be earlier than I am. Thank goodness.

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Speaker 17: The plan is after twenty twenty two. There was a

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Speaker 17: mishapen I'm thankfully unmanned flight which saw Blue Origin ground

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Speaker 17: its flights. This will mark the resumption. I believe it's

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Speaker 17: the seventh flight to carry a crew, and it's also

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Speaker 17: going to include someone rather special.

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Speaker 9: Ed D.

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Speaker 17: White, who was part of the original NASA program, would

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Speaker 17: have been the first African American in space had he

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Speaker 17: been picked.

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Speaker 3: And then not to mention what happens early next week

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Speaker 3: Boeing's first cruise space flight maybe just maybe using its

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Speaker 3: Starliner craft. So that's been delayed a little bit. Maybe

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Speaker 3: it'll come on May twenty first. There is a lot

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Speaker 3: going on in space, has always been most Carl Porter

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Speaker 3: helping us tell that story. I hope you both have

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Speaker 3: to get up too early someday. Meanwhile, coming up after

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Speaker 3: a volatile week of trading the Memestock rally, coming to

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Speaker 3: back down to Earth.

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Speaker 6: I could have used all the puns about to the moon,

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Speaker 6: but I won't.

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Speaker 3: We will bring you the latest next as a rumored technology.

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Speaker 5: It is time for talking tech. These are some of

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Speaker 5: the other stories we're following in the news. First up

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Speaker 5: Snowflake is in talks to acquire startup Wreca Ai for

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Speaker 5: more than one billion dollars. That's according to sources. RecA

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Speaker 5: Ai is a producer of large language models and would

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Speaker 5: enable software maker Snowflake to offer generative AI capabilities. Record

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Speaker 5: Ai was founded in twenty twenty two and was valued

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Speaker 5: at three hundred million dollars in a twenty twenty three

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Speaker 5: investment round. Plus, Ingram Micro is preparing to move ahead

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Speaker 5: with plans for an IPO that could raise more than

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Speaker 5: one billion dollars. That also according to sources, who say

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Speaker 5: Ingram's considering seeking evaluation of as much as ten billion dollars.

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Speaker 5: The company has been working with Goldman Sachs and Morgan

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Speaker 5: Stanley on the listing and is said to have added

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Speaker 5: JP Morgan to its list of advisors, and Microsoft avoids

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Speaker 5: a UK antitrust probe for its partnership with meestrel Ai.

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Speaker 5: Last month, the UK Competition and Markets Authority announced that

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Speaker 5: it was gathering information on whether the two companies threatened

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Speaker 5: competition in the UK. The watchdog group reversed that decision,

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Speaker 5: saying Microsoft does not have the ability to quote materially

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Speaker 5: influence Miestrel's commercial policy.

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Speaker 3: Caroline, Let's just go back to what was quite the

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Speaker 3: frenzy at the start of the weekend, all the mean stops,

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Speaker 3: but now that's come to a bit of an abrupt halt.

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Speaker 3: Came so off as you see now only up sixteen percent,

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Speaker 3: shares falling for a third secutive day. In fact, as

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Speaker 3: a company pre announced earnings. So it may set up

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Speaker 3: to fully five million shares. Let speke it all down

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Speaker 3: in the most Bailey lipshals. And the point here is

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Speaker 3: that we had GameStop.

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Speaker 6: And AMC really soaring at the beginning of the week.

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Speaker 6: AMC made the most of it. Now game stops trying

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Speaker 6: to make the most.

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Speaker 4: Of it exactly.

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Speaker 18: AMC happened to have that at the market offering in

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Speaker 18: the works before, so they were able to capitalize on

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Speaker 18: that raise about one hundred and twenty five million.

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Speaker 4: Dollars through sales of new shares. They also then.

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Speaker 18: Announced a debt for equity swap, so diluting investors, but

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Speaker 18: trying to shore up the fact that they had at

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Speaker 18: least at the beginning of the week north of four

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Speaker 18: and a half billion dollars in debt. Now game stop

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Speaker 18: to be Fair doesn't really have debt, they don't need

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Speaker 18: the cash. But when I talked to market watchers, they

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Speaker 18: basically said, they are two times you sell shares, one

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Speaker 18: when you're stupid not to and one when you need cash.

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Speaker 18: And it does seem like games stop trying to move

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Speaker 18: to capitalize on the rally. But as you mentioned, not

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Speaker 18: only up seventeen percent this week, not up the two

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Speaker 18: hundred and seventy percent it was at the start of

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Speaker 18: the week on Tuesday, and.

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Speaker 3: We got a little bit of fundamental news unlike what

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Speaker 3: has driven this meme stock rally.

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Speaker 6: And they pre announced their earnings. How do they fare?

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Speaker 6: And it looks as though revenues are under pressure.

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Speaker 18: Under pressure missed what Wall Street had penciled in. But

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Speaker 18: they're only how many I would say there are two

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Speaker 18: analysts who follow it, so it's not really like we

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Speaker 18: can say there are dozens of analysts who kind of

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Speaker 18: are sharpening their pencils to come up with what they

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Speaker 18: should be reporting.

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Speaker 4: But it is slowing.

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Speaker 18: They are focused really on getting back to profitability. So

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Speaker 18: the net loss was more narrow in the last three

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Speaker 18: months than it was this time last year, but still

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Speaker 18: fundamentally there are pressures there's kind of they need a

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Speaker 18: new game cycle, They needed a new console cycle. They

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Speaker 18: are also battling with the fact that people download games

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Speaker 18: and don't go to stores, and that's really been the

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Speaker 18: bare Case four game stop even well before twenty twenty one's.

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Speaker 5: Craze Bailey, Hello Happy Friday. I was talking to somebody

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Speaker 5: interesting last night, let's call them a market participant, and

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Speaker 5: I asked about Roaring Kitty And I was like, has

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Speaker 5: anyone yet worked out what Roaring Kitty was trying to

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Speaker 5: communicate through social media? And this person, again let's call

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Speaker 5: them a market participant, was like, do we even know

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Speaker 5: that it is Roaring Kitty?

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Speaker 18: If we don't, And that's why it's scary, because we

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Speaker 18: haven't seen the person who operates under the moniker Raring Kitty.

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Speaker 18: Keith Gill hasn't been on social media. He used to

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Speaker 18: be streaming on YouTube and different means back in twenty

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Speaker 18: twenty one. In twenty twenty he hasn't physically appeared, so

444
00:21:18,400 --> 00:21:21,040
Speaker 18: that x handle was back to posting a number of videos.

445
00:21:21,040 --> 00:21:23,840
Speaker 4: But to your point, no one's been able to confirm or.

446
00:21:23,760 --> 00:21:26,360
Speaker 18: Talk to Gil himself to see if he actually has

447
00:21:26,440 --> 00:21:29,560
Speaker 18: resurfaced after almost three years of being away from social media,

448
00:21:29,760 --> 00:21:32,879
Speaker 18: or to read between the lines that what your source

449
00:21:32,960 --> 00:21:33,520
Speaker 18: is pointing at.

450
00:21:33,560 --> 00:21:35,639
Speaker 4: It could be other actors, but no one really knows.

451
00:21:36,920 --> 00:21:39,399
Speaker 5: What is interesting is that loads of people tried to

452
00:21:39,400 --> 00:21:40,360
Speaker 5: play the game this week.

453
00:21:40,400 --> 00:21:40,560
Speaker 4: Right.

454
00:21:40,560 --> 00:21:42,520
Speaker 5: People have taken to social media and said, oh, look,

455
00:21:42,560 --> 00:21:45,000
Speaker 5: I made a small amount of money by buying or

456
00:21:45,040 --> 00:21:48,080
Speaker 5: selling games of AMC shares. Is there any sense that

457
00:21:48,119 --> 00:21:51,480
Speaker 5: there was something bigger than that, beyond just retail trade

458
00:21:51,600 --> 00:21:52,480
Speaker 5: is playing the moment?

459
00:21:53,000 --> 00:21:53,200
Speaker 15: Well?

460
00:21:53,200 --> 00:21:55,119
Speaker 18: We wrote about this throughout the week, and when you

461
00:21:55,200 --> 00:21:57,320
Speaker 18: look at the trading flows on the likes of a

462
00:21:57,359 --> 00:22:01,479
Speaker 18: Fidelity or an interactive brokers, it's a small portion compared

463
00:22:01,480 --> 00:22:03,040
Speaker 18: to what we saw in twenty twenty one. And if

464
00:22:03,040 --> 00:22:06,119
Speaker 18: you look at Fidelity's platform over the past week, the

465
00:22:06,240 --> 00:22:08,800
Speaker 18: number of buy and sell orders has basically been matched.

466
00:22:08,920 --> 00:22:11,280
Speaker 18: So when you look at the hundreds of millions of

467
00:22:11,320 --> 00:22:13,680
Speaker 18: shares that have traded four game stop in the north

468
00:22:13,680 --> 00:22:16,000
Speaker 18: of a billion shares in AMC that have traded, the

469
00:22:16,080 --> 00:22:18,880
Speaker 18: underlying factors would point towards this likely being some form

470
00:22:18,880 --> 00:22:21,040
Speaker 18: of momentum or quantitative funds trading in it.

471
00:22:22,040 --> 00:22:25,080
Speaker 4: Bloomberg's Bei lip Schultz, Well, week, it's been tha. Thank you.

472
00:22:25,080 --> 00:22:27,680
Speaker 5: Now coming up on the show, cloud computing company Core.

473
00:22:27,760 --> 00:22:30,800
Speaker 5: We've received seven point five billion in private debt. We're

474
00:22:30,800 --> 00:22:32,600
Speaker 5: going to speak to the CEO next. Stay with us

475
00:22:32,600 --> 00:22:34,199
Speaker 5: because we'll be right back.

476
00:22:34,359 --> 00:22:35,119
Speaker 4: This is Bloomberg.

477
00:22:45,880 --> 00:22:49,600
Speaker 5: Welcome back to Bloomberg Technology, Ed Lovelow here in San Francisco.

478
00:22:49,240 --> 00:22:50,040
Speaker 6: Caroline had in New York.

479
00:22:50,119 --> 00:22:51,879
Speaker 3: Let's get your cold check on these markets, because it

480
00:22:51,920 --> 00:22:54,320
Speaker 3: has been a week, and it's been a macro fueled

481
00:22:54,320 --> 00:22:56,679
Speaker 3: week in many ways, some of the data points shining

482
00:22:56,720 --> 00:22:58,560
Speaker 3: a light that maybe the FAG can still cut. We've

483
00:22:58,560 --> 00:23:01,680
Speaker 3: got therefore, benchmarks near or at record highs. There certainly

484
00:23:01,840 --> 00:23:04,000
Speaker 3: have been for the Nasdaq one hundred, the Nasdaq SMP

485
00:23:04,080 --> 00:23:06,200
Speaker 3: five hundred, of course, the Dow hitting more than forty thousand.

486
00:23:06,320 --> 00:23:07,680
Speaker 6: We're just wavering on the days.

487
00:23:07,680 --> 00:23:09,680
Speaker 3: Perhaps we just trade into this weekend and take a

488
00:23:09,680 --> 00:23:12,320
Speaker 3: little bit of profit. But stock six hundred not as

489
00:23:12,400 --> 00:23:15,119
Speaker 3: strong a week, up less than a percentage point, but

490
00:23:15,200 --> 00:23:17,800
Speaker 3: still up for two straight weeks and still near a

491
00:23:17,840 --> 00:23:20,000
Speaker 3: record high as well. Remember it was four straight weeks

492
00:23:20,000 --> 00:23:21,879
Speaker 3: on the US benchmarks as the longest winning street that

493
00:23:21,880 --> 00:23:24,600
Speaker 3: we've seen since February. I'm looking at Bitcoin up three

494
00:23:24,680 --> 00:23:26,840
Speaker 3: hundred quarter percent. It's having a good week two and

495
00:23:26,840 --> 00:23:29,159
Speaker 3: we're currently up at sixty seven thousand. Move on and

496
00:23:29,160 --> 00:23:31,639
Speaker 3: have a look what's happening in terms of individual names

497
00:23:31,680 --> 00:23:33,680
Speaker 3: that are on the move, and notably Take two is

498
00:23:33,680 --> 00:23:35,320
Speaker 3: actually one of the best performers on the NASDAK one

499
00:23:35,400 --> 00:23:38,920
Speaker 3: hundred gaming company coming out and saying sorry, we're delaying

500
00:23:38,920 --> 00:23:41,520
Speaker 3: it again the latest grand theft auto. But at least

501
00:23:41,520 --> 00:23:44,280
Speaker 3: we're getting a timetable a little bit more resolutely, and

502
00:23:44,320 --> 00:23:46,600
Speaker 3: so investors seem to be in a forgiving mood when

503
00:23:46,600 --> 00:23:48,879
Speaker 3: maybe some of the numbers did have to be daled

504
00:23:48,920 --> 00:23:51,880
Speaker 3: back more broadly for this year, the school year's revenue

505
00:23:51,960 --> 00:23:54,480
Speaker 3: because of the delay to the start of twenty twenty

506
00:23:54,520 --> 00:23:58,240
Speaker 3: five PDD I'm looking at, of course, TMU ubs upgrading

507
00:23:58,240 --> 00:24:01,119
Speaker 3: their stock saying that look, we're all over exaggerating the

508
00:24:01,160 --> 00:24:05,399
Speaker 3: limitations of TEMU into geographical diversity on the back of

509
00:24:05,400 --> 00:24:07,679
Speaker 3: geopolitical threats. In fact, they think that they're still going

510
00:24:07,720 --> 00:24:10,000
Speaker 3: to be a winning formula. PDD get their numbers on

511
00:24:10,040 --> 00:24:12,199
Speaker 3: the twenty second of May. Who else gives us their

512
00:24:12,280 --> 00:24:14,840
Speaker 3: numbers next week in video we're currently down by eight

513
00:24:14,840 --> 00:24:17,200
Speaker 3: tens percent, but ed we're looking at in terms of

514
00:24:17,200 --> 00:24:18,080
Speaker 3: the world of AI.

515
00:24:18,640 --> 00:24:21,680
Speaker 5: Well, a name that's very closely tied to in video.

516
00:24:21,720 --> 00:24:24,720
Speaker 5: In one of the largest private financings to date, cloud

517
00:24:24,720 --> 00:24:28,520
Speaker 5: computing company core Weave has received a seven point five

518
00:24:28,560 --> 00:24:33,000
Speaker 5: billion dollar debt package led by Blackstone, Magnetar and Co.

519
00:24:33,200 --> 00:24:35,359
Speaker 5: Two and please to say were join now by the

520
00:24:35,359 --> 00:24:38,160
Speaker 5: core Weave CEO, Michael and Tranter. Okay, let me frame

521
00:24:38,200 --> 00:24:41,560
Speaker 5: it this way. Seven point five billion dollars is a

522
00:24:41,560 --> 00:24:44,879
Speaker 5: lot of debt financing. It's a very large number. You

523
00:24:44,880 --> 00:24:48,560
Speaker 5: are an unusual company because you're doing something with pace

524
00:24:48,640 --> 00:24:51,440
Speaker 5: but very closely tied to in video. So I think

525
00:24:51,440 --> 00:24:54,520
Speaker 5: our audience would appreciate that you just kind of explain

526
00:24:54,600 --> 00:24:58,159
Speaker 5: how you got the debt financing and how it's structured,

527
00:24:58,240 --> 00:25:02,040
Speaker 5: because the cast of character in there are also unusual.

528
00:25:03,760 --> 00:25:05,960
Speaker 11: Yeah, so first of all, thank you for having me

529
00:25:06,760 --> 00:25:09,760
Speaker 11: back on again. They appreciate the opportunity to, uh to

530
00:25:09,760 --> 00:25:13,240
Speaker 11: speak with you in your in your audience. So, uh,

531
00:25:13,520 --> 00:25:16,240
Speaker 11: this is a very exciting financing for us, and it

532
00:25:16,320 --> 00:25:19,400
Speaker 11: follows very closely on the coattails of a one point

533
00:25:19,480 --> 00:25:22,720
Speaker 11: one billion dollar equity round that we.

534
00:25:23,160 --> 00:25:24,840
Speaker 9: Completed last week.

535
00:25:25,080 --> 00:25:28,480
Speaker 11: And so it's been a very very active period of

536
00:25:28,520 --> 00:25:32,880
Speaker 11: time for for Core. We've in the capital markets, the

537
00:25:32,880 --> 00:25:34,800
Speaker 11: the uh the.

538
00:25:34,760 --> 00:25:38,920
Speaker 9: Syndicate of lenders, which is really who's who.

539
00:25:39,040 --> 00:25:43,080
Speaker 11: Of private lending, including you know, as you said, Blackstone,

540
00:25:43,119 --> 00:25:48,080
Speaker 11: magnutar Co two, but you also have Carlisle, CDPQ, Digital Bridge,

541
00:25:48,359 --> 00:25:52,560
Speaker 11: black Rock, Eldridge, you know, like really wonderful names, really

542
00:25:53,000 --> 00:25:56,520
Speaker 11: great supporters that that have a deep understanding of the

543
00:25:56,520 --> 00:26:01,240
Speaker 11: business and you know, really provide in coordination with the

544
00:26:01,280 --> 00:26:04,639
Speaker 11: equity round that closed last week and a deep validation

545
00:26:04,880 --> 00:26:07,959
Speaker 11: for the solution that we are delivering to the market,

546
00:26:08,440 --> 00:26:14,479
Speaker 11: our approach to building you know, ait cloud infrastructure. And

547
00:26:14,520 --> 00:26:19,119
Speaker 11: so it's been really oneful few weeks here for the

548
00:26:19,160 --> 00:26:22,840
Speaker 11: company as we really pushed towards enormous scale.

549
00:26:22,920 --> 00:26:24,200
Speaker 6: I mean, this is a big pot of money.

550
00:26:24,280 --> 00:26:27,040
Speaker 3: As you referenced one point one billion equity funding just

551
00:26:27,080 --> 00:26:29,080
Speaker 3: done two weeks ago. You've now got the seven and

552
00:26:29,119 --> 00:26:31,880
Speaker 3: a half billion dollars more of debt put to work,

553
00:26:31,920 --> 00:26:35,159
Speaker 3: and it's about infrastructure. Seems to be the fact that

554
00:26:35,200 --> 00:26:36,840
Speaker 3: you want to be doubling your.

555
00:26:36,720 --> 00:26:38,439
Speaker 6: Footprint when it comes to data centers.

556
00:26:38,520 --> 00:26:41,800
Speaker 3: You've already expanded into London outside of the US, You're

557
00:26:41,960 --> 00:26:44,440
Speaker 3: going to be buying those chips the infrastructure, So where

558
00:26:44,480 --> 00:26:46,280
Speaker 3: will you put the data centers first and foremost?

559
00:26:46,280 --> 00:26:48,160
Speaker 7: Michael, Sure, So.

560
00:26:48,560 --> 00:26:49,160
Speaker 9: A couple of things.

561
00:26:49,160 --> 00:26:52,600
Speaker 1: One is, in total, over the past twelve months, we've

562
00:26:52,680 --> 00:26:57,560
Speaker 1: raised twelve billion dollars into COREWAK and that is representative

563
00:26:57,800 --> 00:27:04,840
Speaker 1: of an incredibly capital intensive build out of infrastructure, initially

564
00:27:04,880 --> 00:27:06,080
Speaker 1: across the United States.

565
00:27:06,200 --> 00:27:09,280
Speaker 11: But now, as you said, we're pushing into Europe. We've

566
00:27:09,320 --> 00:27:12,280
Speaker 11: we've we've got too data centers that we're building in London,

567
00:27:12,359 --> 00:27:12,919
Speaker 11: We've got.

568
00:27:12,800 --> 00:27:15,320
Speaker 9: A footprint in Spain, will be up in the Nordics.

569
00:27:15,800 --> 00:27:19,320
Speaker 11: In total, we'll have twenty eight data centers by the

570
00:27:19,320 --> 00:27:22,800
Speaker 11: the end of this year that we will be providing

571
00:27:22,920 --> 00:27:27,760
Speaker 11: our clients infrastructure from. You know, we try to build

572
00:27:27,800 --> 00:27:31,399
Speaker 11: our data centers approximate population centers. You know, think to

573
00:27:31,680 --> 00:27:35,159
Speaker 11: like as the you know, the NFL strategy, you know,

574
00:27:35,240 --> 00:27:38,320
Speaker 11: in terms of trying to put our data our data

575
00:27:38,320 --> 00:27:42,960
Speaker 11: centers so that they are relatively low latency providers of infrastructure.

576
00:27:43,080 --> 00:27:45,840
Speaker 11: But you know, as I said, our footprint is getting

577
00:27:46,280 --> 00:27:50,280
Speaker 11: much larger very quickly. And you know this, this this

578
00:27:50,359 --> 00:27:52,359
Speaker 11: pool of capital here is seven and a half billion,

579
00:27:52,720 --> 00:27:56,119
Speaker 11: is really focused on the physical infrastructure that we have

580
00:27:56,240 --> 00:28:02,080
Speaker 11: to build in order to deliver our products to our clients.

581
00:28:03,600 --> 00:28:05,920
Speaker 5: Michael, I think a lot of people are really starting

582
00:28:05,960 --> 00:28:10,159
Speaker 5: to become concerned or at least inquisitive about energy and

583
00:28:10,240 --> 00:28:13,800
Speaker 5: power consumption. Have you a clear strategy for energy and

584
00:28:13,880 --> 00:28:17,680
Speaker 5: power sourcing and all the geographies you've just outlined, Yeah,

585
00:28:17,880 --> 00:28:18,680
Speaker 5: we do.

586
00:28:18,640 --> 00:28:21,480
Speaker 9: And it's a work in progress.

587
00:28:22,080 --> 00:28:25,000
Speaker 11: You know, the rate at which we're scaling, we are

588
00:28:25,200 --> 00:28:29,639
Speaker 11: continually addressing that. My background is actually from energy, and

589
00:28:31,080 --> 00:28:33,600
Speaker 11: you know that's where I grew up, and prior to that,

590
00:28:33,680 --> 00:28:37,280
Speaker 11: I really focused on environmental commodities, and so it's something.

591
00:28:37,000 --> 00:28:39,080
Speaker 9: That's near and dear to me. It's near and dear

592
00:28:39,120 --> 00:28:39,640
Speaker 9: to the company.

593
00:28:39,720 --> 00:28:42,360
Speaker 11: We have an entire team internal to the company that

594
00:28:42,400 --> 00:28:45,680
Speaker 11: are building a strategy we'll have in place by two

595
00:28:45,720 --> 00:28:49,560
Speaker 11: thousand and thirty as we go through this rant. And so,

596
00:28:49,880 --> 00:28:53,480
Speaker 11: you know, we understand that there is a moral imperative

597
00:28:53,680 --> 00:28:59,479
Speaker 11: to take responsibility for the energy that is required to

598
00:28:59,520 --> 00:29:03,000
Speaker 11: be able to deliver this type of resource to the world.

599
00:29:03,200 --> 00:29:04,920
Speaker 6: So what is it? Is it nuclear?

600
00:29:05,480 --> 00:29:08,440
Speaker 3: Is it just having to be more efficient with what

601
00:29:08,440 --> 00:29:11,760
Speaker 3: you've got, go for more power efficient chips.

602
00:29:12,880 --> 00:29:15,960
Speaker 11: Yeah, So the answer is is, like so many things

603
00:29:16,000 --> 00:29:20,400
Speaker 11: around energy is it's a combination of a number of things, right.

604
00:29:20,480 --> 00:29:25,440
Speaker 11: So a great example is in the next iteration of

605
00:29:25,480 --> 00:29:29,040
Speaker 11: our technology build, we'll be moving from air cooled data

606
00:29:29,080 --> 00:29:32,959
Speaker 11: centers into liquid cooled data centers, and the savings that

607
00:29:33,120 --> 00:29:41,360
Speaker 11: are associated with liquid cooled provide maybe thirty percent more

608
00:29:42,240 --> 00:29:45,200
Speaker 11: energy efficiency within the data center because you don't have

609
00:29:45,240 --> 00:29:47,040
Speaker 11: to run all the air fans, you don't have to

610
00:29:47,200 --> 00:29:50,400
Speaker 11: move so much cooling through it. It's just more efficient.

611
00:29:50,480 --> 00:29:53,520
Speaker 11: And so there'll be a significant step function.

612
00:29:53,240 --> 00:29:57,560
Speaker 19: That you will be able to achieve by just evolving

613
00:29:57,600 --> 00:30:04,280
Speaker 19: the technology into the most modern energy efficient component.

614
00:30:04,400 --> 00:30:07,720
Speaker 9: The other thing to think about is from computational perspective,

615
00:30:08,000 --> 00:30:09,560
Speaker 9: the the.

616
00:30:08,960 --> 00:30:14,040
Speaker 11: The hardware that that is being delivered, Yeah, right now

617
00:30:14,320 --> 00:30:17,840
Speaker 11: is enormously more energy efficient per flop than it has

618
00:30:17,920 --> 00:30:18,840
Speaker 11: ever been in the past.

619
00:30:19,960 --> 00:30:22,600
Speaker 5: I know somebody that will make that argument. Next week

620
00:30:23,040 --> 00:30:26,280
Speaker 5: on Monday, I'm going to speak to Jensen Wang, Michael Dell,

621
00:30:26,720 --> 00:30:30,680
Speaker 5: and Bill McDermott, all at the same time. The success

622
00:30:30,760 --> 00:30:34,800
Speaker 5: of those companies, Michael, to which one is your fate

623
00:30:35,080 --> 00:30:36,240
Speaker 5: most closely tied?

624
00:30:37,480 --> 00:30:44,040
Speaker 9: So look, you know we have a wonderful partnership with

625
00:30:44,400 --> 00:30:44,880
Speaker 9: in Video.

626
00:30:45,920 --> 00:30:50,920
Speaker 11: You know they are absolutely at the epicenter of anyone's

627
00:30:51,000 --> 00:30:54,280
Speaker 11: approach to building out the physical infrastructure.

628
00:30:55,200 --> 00:30:59,480
Speaker 9: For serving the AI markets.

629
00:31:00,080 --> 00:31:02,960
Speaker 11: That is a reality of where we are right now

630
00:31:04,080 --> 00:31:05,880
Speaker 11: and will be for for quite a while.

631
00:31:07,200 --> 00:31:08,360
Speaker 9: You know, Michael dell.

632
00:31:08,400 --> 00:31:11,479
Speaker 11: Is is you know, del is an extremely important partner

633
00:31:11,520 --> 00:31:13,920
Speaker 11: of ours there. You know, we require them to be

634
00:31:13,960 --> 00:31:20,320
Speaker 11: able to build, uh the infrastructure that that incorporates the

635
00:31:20,320 --> 00:31:23,560
Speaker 11: the the the GPUs that we use, and so you know,

636
00:31:23,600 --> 00:31:27,560
Speaker 11: we we are you know, working with with with many

637
00:31:27,640 --> 00:31:28,920
Speaker 11: partners across the space.

638
00:31:29,040 --> 00:31:31,200
Speaker 6: Are you too dependent Michael though, Are you too dependent

639
00:31:31,200 --> 00:31:31,680
Speaker 6: on a video?

640
00:31:33,160 --> 00:31:33,560
Speaker 9: Uh?

641
00:31:33,800 --> 00:31:38,960
Speaker 11: So the world is dependent on in video at this juncture.

642
00:31:39,040 --> 00:31:43,080
Speaker 11: Their technology is defining the space, and so we work

643
00:31:43,160 --> 00:31:48,200
Speaker 11: with them because our clients demand the technology that they

644
00:31:48,360 --> 00:31:49,960
Speaker 11: drive and deliver into the market.

645
00:31:50,080 --> 00:31:52,080
Speaker 6: No I m D not any of us.

646
00:31:52,560 --> 00:31:56,400
Speaker 20: So so we we we look at all different types

647
00:31:56,440 --> 00:31:59,240
Speaker 20: of silicon, We look at all different types of solutions,

648
00:31:59,560 --> 00:32:03,080
Speaker 20: but our clients have clearly indicated that for the time being,

649
00:32:03,560 --> 00:32:04,120
Speaker 20: the type of.

650
00:32:04,080 --> 00:32:07,080
Speaker 11: Silicon that they require to build their products, to build

651
00:32:07,520 --> 00:32:11,840
Speaker 11: the artificial intelligence that's changing the world is currently being

652
00:32:11,960 --> 00:32:16,840
Speaker 11: driven in large part by the Nvidio infrastructure.

653
00:32:17,560 --> 00:32:20,600
Speaker 3: Well, the share price reflects at core Wee've CEO Michael

654
00:32:20,800 --> 00:32:23,360
Speaker 3: and Treta, thanks so much for coming on to talk about.

655
00:32:23,080 --> 00:32:24,360
Speaker 6: Your own funding.

656
00:32:24,480 --> 00:32:26,120
Speaker 3: I mean, while coming up, we're going to be hearing

657
00:32:26,160 --> 00:32:28,120
Speaker 3: from the Salesforce CEO Mark Benioff about the future of

658
00:32:28,160 --> 00:32:29,160
Speaker 3: artificial intelligence.

659
00:32:29,320 --> 00:32:37,200
Speaker 6: Who'd have thought it? This is Bloomberg Technology.

660
00:32:40,280 --> 00:32:43,960
Speaker 5: In an exclusive interview with Bloomberg Salesforce CEO Mark Bennioff

661
00:32:44,000 --> 00:32:47,800
Speaker 5: suppose to us about working with activist investors, competition with

662
00:32:47,920 --> 00:32:52,160
Speaker 5: service Now, and his outlook for the future of artificial intelligence.

663
00:32:52,200 --> 00:32:52,760
Speaker 4: Listen to this.

664
00:32:54,160 --> 00:32:55,920
Speaker 2: I think I might be one of the few CEOs

665
00:32:55,920 --> 00:32:59,080
Speaker 2: that actually really enjoyed working with these activist investors. I

666
00:32:59,120 --> 00:33:03,000
Speaker 2: had never heard so many great new ideas in my career,

667
00:33:03,040 --> 00:33:06,120
Speaker 2: including such out of the box thinking and look, we

668
00:33:06,160 --> 00:33:09,160
Speaker 2: were able to really transform and evolve Salesforce over the

669
00:33:09,240 --> 00:33:11,400
Speaker 2: last year, and you can see it with our incredible

670
00:33:11,800 --> 00:33:15,880
Speaker 2: financial results that we had last year and our idea

671
00:33:15,960 --> 00:33:18,000
Speaker 2: that we're able to continue to move forward with these

672
00:33:18,040 --> 00:33:21,840
Speaker 2: incredible new characteristics of our company and our last earning

673
00:33:22,080 --> 00:33:25,000
Speaker 2: result we'veven talked about that we've started to create a dividend.

674
00:33:25,120 --> 00:33:28,320
Speaker 2: That's something that was beyond my imagination even just a

675
00:33:28,320 --> 00:33:31,280
Speaker 2: few years ago. So it's exciting to be the number

676
00:33:31,320 --> 00:33:34,400
Speaker 2: one CRM to help companies connect with our customers in

677
00:33:34,440 --> 00:33:37,680
Speaker 2: a whole new way. Right now, we're about to enter

678
00:33:37,680 --> 00:33:40,840
Speaker 2: an incredible new world, which is the world of artificial

679
00:33:40,880 --> 00:33:44,920
Speaker 2: intelligence and how it's going to transform these customer relationships.

680
00:33:44,920 --> 00:33:48,239
Speaker 2: And I think we're about to see some technology that

681
00:33:48,280 --> 00:33:50,640
Speaker 2: we never thought we'd see in our lifetimes. We're going

682
00:33:50,680 --> 00:33:53,920
Speaker 2: to see just some incredible new ways to run our businesses.

683
00:33:54,720 --> 00:33:58,200
Speaker 16: Competition and CRM is feerce mark. You've got Service now

684
00:33:58,240 --> 00:34:01,160
Speaker 16: trying to poach a bunch of salesforce employees. I believe

685
00:34:01,200 --> 00:34:04,080
Speaker 16: they stopped using Slack after you bought it. They're trying

686
00:34:04,080 --> 00:34:06,200
Speaker 16: to build more of a consumer brand. They started their

687
00:34:06,240 --> 00:34:09,680
Speaker 16: own trailblazer program. Are they trying to pick a fight

688
00:34:09,719 --> 00:34:09,960
Speaker 16: with you?

689
00:34:14,200 --> 00:34:18,200
Speaker 2: Well, they're an interesting company, you know. I just think

690
00:34:18,239 --> 00:34:19,920
Speaker 2: they need to be careful. They might be getting a

691
00:34:19,960 --> 00:34:22,800
Speaker 2: little ahead of their skis. We just replaced them at Disney.

692
00:34:23,280 --> 00:34:26,640
Speaker 2: Of course, we already had run Disney stores and Disney

693
00:34:26,680 --> 00:34:28,680
Speaker 2: guides in the Park, and we had done a lot

694
00:34:28,719 --> 00:34:32,080
Speaker 2: of things with Disney with their customer relationships. But I

695
00:34:32,120 --> 00:34:35,760
Speaker 2: think everybody knows that when they went to have Disney

696
00:34:35,760 --> 00:34:38,920
Speaker 2: Plus and wanted to have a call center, and they

697
00:34:39,000 --> 00:34:42,400
Speaker 2: chose that company. Well, unfortunately, Salesforce had to come in

698
00:34:42,480 --> 00:34:45,880
Speaker 2: and rescue the entire operation and rebuild all of the

699
00:34:45,920 --> 00:34:50,680
Speaker 2: customer success and call centers for Disney and which was

700
00:34:50,760 --> 00:34:53,520
Speaker 2: at that point had been called out as a marquee

701
00:34:53,560 --> 00:34:57,359
Speaker 2: customer of their as well. Salesforce is actually a tremendous

702
00:34:57,360 --> 00:35:02,760
Speaker 2: company that does real customers and delivers solutions in sales

703
00:35:02,840 --> 00:35:06,800
Speaker 2: service marketing for so many great companies around the world.

704
00:35:06,840 --> 00:35:10,400
Speaker 2: Now obviously standardized the Disney, but for so many other

705
00:35:10,520 --> 00:35:14,400
Speaker 2: or great organizations, banks, insurance companies all over the world.

706
00:35:14,200 --> 00:35:17,120
Speaker 2: And I think we're doing pretty well on.

707
00:35:17,080 --> 00:35:21,879
Speaker 3: Our own iding talk coming from the Salesforce CEO Mark

708
00:35:21,880 --> 00:35:23,719
Speaker 3: Benioff as if you expect anything less.

709
00:35:23,800 --> 00:35:25,920
Speaker 6: Meanwhile, the Senate's bipart of some AI.

710
00:35:25,760 --> 00:35:29,480
Speaker 3: Working Group finally released is AI roadmap this week, but

711
00:35:29,520 --> 00:35:32,520
Speaker 3: it's getting some mixed reactions from civil groups, for example,

712
00:35:32,520 --> 00:35:34,320
Speaker 3: who feel that the industry is playing.

713
00:35:34,080 --> 00:35:37,840
Speaker 6: An outsized role in shaping this legislation. Let's dig deeper

714
00:35:38,200 --> 00:35:38,680
Speaker 6: with all of it.

715
00:35:38,719 --> 00:35:40,759
Speaker 3: Linda Moore is with US president and CEO of tech net,

716
00:35:40,800 --> 00:35:44,759
Speaker 3: which represents bipartisan network of Innovation economy, CEOs, senior executives

717
00:35:45,320 --> 00:35:48,560
Speaker 3: like the open aiyes of this world and Linda, I

718
00:35:48,560 --> 00:35:51,120
Speaker 3: can imagine that thus far, what's being said, the thirty

719
00:35:51,120 --> 00:35:54,080
Speaker 3: two billion dollars of investment coming for AI. The focus

720
00:35:54,120 --> 00:35:56,200
Speaker 3: on innovation is music to your ears. But are you

721
00:35:56,440 --> 00:35:59,239
Speaker 3: listening to what the civil side of the equation is

722
00:35:59,239 --> 00:36:01,799
Speaker 3: and the fact that they feel that regulation and god

723
00:36:01,880 --> 00:36:03,120
Speaker 3: rails aren't coming soon enough.

724
00:36:04,760 --> 00:36:07,120
Speaker 21: Yes, I understand, and they were involved in all of

725
00:36:07,160 --> 00:36:09,640
Speaker 21: the AI insight forums that were held in the US Senate,

726
00:36:09,760 --> 00:36:12,040
Speaker 21: and I'm sure their voices will still be heard as

727
00:36:12,040 --> 00:36:15,520
Speaker 21: we go through the process. One thing that I think

728
00:36:15,560 --> 00:36:18,200
Speaker 21: that they need to understand and the public should understand

729
00:36:18,280 --> 00:36:22,600
Speaker 21: is last summer, these big AI companies in America made

730
00:36:22,640 --> 00:36:25,760
Speaker 21: voluntary commitments with the White House to secure the systems

731
00:36:25,800 --> 00:36:28,640
Speaker 21: to mitigate bias, all the risks and harms that can

732
00:36:28,680 --> 00:36:31,879
Speaker 21: be anticipated, and they also went beyond that to make

733
00:36:31,880 --> 00:36:35,920
Speaker 21: their own internal evaluations on all the risk mitigation that

734
00:36:35,960 --> 00:36:36,920
Speaker 21: need to be done.

735
00:36:37,080 --> 00:36:38,800
Speaker 7: This will go through a committee.

736
00:36:38,360 --> 00:36:40,359
Speaker 9: Process in the US Senate and also in the.

737
00:36:40,320 --> 00:36:44,200
Speaker 21: House, and everyone's voice will be heard, including civil society

738
00:36:44,560 --> 00:36:47,160
Speaker 21: and our companies. The tech companies in the US are

739
00:36:47,160 --> 00:36:49,680
Speaker 21: working very closely with them and want to address all

740
00:36:49,680 --> 00:36:50,440
Speaker 21: their concerns.

741
00:36:51,640 --> 00:36:54,799
Speaker 5: Apologies for the sneeze to our Bloomberg technology audience around

742
00:36:54,840 --> 00:36:58,320
Speaker 5: the world. It's allergies season, but I've recently discovered flow nase.

743
00:36:58,640 --> 00:36:59,960
Speaker 4: Other products are available.

744
00:37:00,560 --> 00:37:03,719
Speaker 5: Linda Caroline summed it up perfectly earlier when we were

745
00:37:03,719 --> 00:37:06,239
Speaker 5: talking about Chuck Schumer. There's a lot of speak coming

746
00:37:06,280 --> 00:37:11,600
Speaker 5: out of DC, but it's basically thought leadership. It's not substantive,

747
00:37:11,680 --> 00:37:16,680
Speaker 5: codified rules or way forward with AI. When do we

748
00:37:16,760 --> 00:37:18,440
Speaker 5: start seeing some concrete action.

749
00:37:20,160 --> 00:37:23,480
Speaker 21: Well, we already saw concrete action just this week. On Wednesday,

750
00:37:23,880 --> 00:37:26,759
Speaker 21: the Senate Rules Committee passed three bills related to the

751
00:37:26,840 --> 00:37:30,239
Speaker 21: use of AI and elections. Eighteen states have already done that,

752
00:37:30,719 --> 00:37:33,640
Speaker 21: and there will be another hearing on AI policy next.

753
00:37:33,400 --> 00:37:34,480
Speaker 9: Week in the US Senate.

754
00:37:34,640 --> 00:37:37,240
Speaker 7: So I expect some of this to move pretty quickly.

755
00:37:37,680 --> 00:37:39,000
Speaker 7: There are other committees that will.

756
00:37:38,840 --> 00:37:40,759
Speaker 21: Take a little bit more time, but I think you'll

757
00:37:40,760 --> 00:37:43,560
Speaker 21: see pretty expeditious action here in the next few months.

758
00:37:43,680 --> 00:37:46,680
Speaker 21: I can't say that every single part of AI policy

759
00:37:47,080 --> 00:37:49,799
Speaker 21: this reflected in the roadmap will be addressed, but I

760
00:37:49,800 --> 00:37:51,480
Speaker 21: think that they'll make good progress.

761
00:37:51,120 --> 00:37:52,200
Speaker 9: In the next few months.

762
00:37:52,360 --> 00:37:55,480
Speaker 21: I've been really pleased to see that AI is an

763
00:37:55,560 --> 00:37:59,319
Speaker 21: area of great curiosity and cooperation across the aisle. We

764
00:37:59,360 --> 00:38:02,480
Speaker 21: see such a partisanship in DC right now, and that's

765
00:38:02,480 --> 00:38:05,440
Speaker 21: another case with AI policy. We see people working together

766
00:38:05,480 --> 00:38:07,320
Speaker 21: and that's really great to see.

767
00:38:07,960 --> 00:38:11,279
Speaker 5: Tech that President CEO, Linda Moore, we really appreciate your

768
00:38:11,280 --> 00:38:14,279
Speaker 5: perspective and analysis. Thank you so much. Coming up on

769
00:38:14,360 --> 00:38:16,840
Speaker 5: Bloomberg Technology, we're going to be joined by the CEO

770
00:38:17,520 --> 00:38:21,600
Speaker 5: of Visco. Remember Visco, the company reached two hundred if

771
00:38:21,600 --> 00:38:24,759
Speaker 5: well exactly it reads two hundred million users worldwide. Talk

772
00:38:24,800 --> 00:38:27,719
Speaker 5: about photos, talk about their turnaround.

773
00:38:27,719 --> 00:38:32,239
Speaker 4: That's coming up next. This is Bloomberg.

774
00:38:40,200 --> 00:38:44,800
Speaker 5: Visco, a platform for photographers and visual storytellers, just announced

775
00:38:44,800 --> 00:38:47,480
Speaker 5: first time profitability.

776
00:38:46,800 --> 00:38:47,960
Speaker 4: Under its new leadership.

777
00:38:48,160 --> 00:38:51,960
Speaker 5: But it's also a mass two hundred million users worldwide.

778
00:38:51,960 --> 00:38:53,920
Speaker 5: I want to dig into that with Visco CEO Eric

779
00:38:53,960 --> 00:38:56,279
Speaker 5: Whitman joining me here on set in San Francisco. So

780
00:38:56,440 --> 00:38:58,680
Speaker 5: our producer John Highland was reflecting that, like in the

781
00:38:58,680 --> 00:39:01,120
Speaker 5: early days of Visco, part of it was the technology

782
00:39:01,120 --> 00:39:05,160
Speaker 5: offering right specific filters, photo editing, and imaging. Two hundred

783
00:39:05,160 --> 00:39:08,520
Speaker 5: million users is a lot. The question is how they're

784
00:39:08,600 --> 00:39:11,640
Speaker 5: using it, Are they paying users, where are they and

785
00:39:11,719 --> 00:39:13,160
Speaker 5: principally what are they using it for?

786
00:39:13,400 --> 00:39:17,320
Speaker 22: Yeah, great question, Thanks for having me on again too. Yeah,

787
00:39:17,360 --> 00:39:19,920
Speaker 22: you know, I think Visco has had a very long journey.

788
00:39:19,960 --> 00:39:22,520
Speaker 22: It's been around for ten years and we've seen multiple

789
00:39:22,600 --> 00:39:26,880
Speaker 22: versions of the company. It's really started by creators for creators.

790
00:39:26,880 --> 00:39:30,840
Speaker 22: So these were photographers, ad agency folks who are really

791
00:39:30,840 --> 00:39:33,799
Speaker 22: trying to support more people like them. And you know,

792
00:39:33,880 --> 00:39:35,880
Speaker 22: for a lot of these users, right, they come to

793
00:39:36,000 --> 00:39:40,000
Speaker 22: Visco for the tools, for the looks. They come because

794
00:39:40,040 --> 00:39:42,520
Speaker 22: they're trying to get a certain look and Visco is

795
00:39:42,560 --> 00:39:45,000
Speaker 22: a really easy way for them to do that. What

796
00:39:45,120 --> 00:39:47,239
Speaker 22: we find though, is people come for the tools and

797
00:39:47,239 --> 00:39:50,759
Speaker 22: they ended up staying for this really healthy creative community

798
00:39:50,920 --> 00:39:54,040
Speaker 22: where people can get to meet other people, get inspired

799
00:39:54,040 --> 00:39:57,120
Speaker 22: by their work, collaborate on other projects. And that's what

800
00:39:57,120 --> 00:39:59,360
Speaker 22: we're finding is where Visco is really sticking for a

801
00:39:59,360 --> 00:40:02,040
Speaker 22: lot of folks. And as we've been making our transition

802
00:40:02,080 --> 00:40:04,600
Speaker 22: more as a business to support more of those serious

803
00:40:04,680 --> 00:40:08,360
Speaker 22: creators like photographers, they're staying around for more of that.

804
00:40:08,520 --> 00:40:11,560
Speaker 5: Of those two hundred million, how many of them are

805
00:40:11,719 --> 00:40:12,840
Speaker 5: a paying customer?

806
00:40:12,880 --> 00:40:14,560
Speaker 4: Will subscribe it in some form?

807
00:40:14,840 --> 00:40:18,240
Speaker 22: Yeah, so pay we primary our business models primarily subscription,

808
00:40:18,320 --> 00:40:21,200
Speaker 22: primarily membership, so it's a fraction of that two hundred million.

809
00:40:21,760 --> 00:40:24,920
Speaker 22: And where we're seeing most of our growth is actually

810
00:40:25,040 --> 00:40:27,879
Speaker 22: with a professional tier, which we just introduced a year ago.

811
00:40:28,920 --> 00:40:32,760
Speaker 3: Okay, and I'm assuming that the professional is more opportunity

812
00:40:33,320 --> 00:40:37,120
Speaker 3: not only to be seeing business done between brands and photographers,

813
00:40:37,200 --> 00:40:40,600
Speaker 3: but also you taking yet further opportunity to boost revenue.

814
00:40:40,600 --> 00:40:41,279
Speaker 6: How do you do that?

815
00:40:42,760 --> 00:40:43,040
Speaker 9: Yeah?

816
00:40:43,160 --> 00:40:45,759
Speaker 22: I mean first is really spending some time listening to

817
00:40:46,160 --> 00:40:49,160
Speaker 22: our customers, and what we're finding with a lot of them,

818
00:40:49,280 --> 00:40:53,520
Speaker 22: especially pro photographers, is it's increasingly difficult for them to

819
00:40:53,600 --> 00:40:58,200
Speaker 22: promote themselves, to find work to be discovered by brands

820
00:40:58,280 --> 00:41:01,880
Speaker 22: or other potential clients, and especially with traditional social media

821
00:41:01,920 --> 00:41:05,680
Speaker 22: and the algorithm's changing, where it's becoming increasingly harder for

822
00:41:05,719 --> 00:41:06,880
Speaker 22: those people to be discovered.

823
00:41:06,880 --> 00:41:07,120
Speaker 9: There.

824
00:41:07,480 --> 00:41:10,480
Speaker 22: What Visco is doing is we're providing a great way

825
00:41:10,719 --> 00:41:15,080
Speaker 22: for these people to create and express that creative identity

826
00:41:15,400 --> 00:41:18,480
Speaker 22: and then be discovered by other people. And in our

827
00:41:18,520 --> 00:41:22,480
Speaker 22: recent introduction of Visco Hub, which is this is a

828
00:41:22,800 --> 00:41:27,040
Speaker 22: very smart and powerful AI driven engine that allows people

829
00:41:27,040 --> 00:41:29,799
Speaker 22: to get discovered by brands and other potential people who

830
00:41:29,840 --> 00:41:30,480
Speaker 22: want to hire them.

831
00:41:30,520 --> 00:41:31,279
Speaker 6: Where are you, Eric?

832
00:41:31,320 --> 00:41:31,520
Speaker 4: Though?

833
00:41:31,600 --> 00:41:33,120
Speaker 6: In terms of those two hundred.

834
00:41:32,920 --> 00:41:37,880
Speaker 3: Million, how many are actually just people in gen Z

835
00:41:38,080 --> 00:41:41,359
Speaker 3: millennial wanting a different type of social media. That's how

836
00:41:41,360 --> 00:41:44,880
Speaker 3: you initially catalyzed growth. You were an alternative where you

837
00:41:44,920 --> 00:41:48,040
Speaker 3: didn't want to be garnering just likes and the anxiety

838
00:41:48,080 --> 00:41:50,920
Speaker 3: that came with that. Do you benefit from the backlash

839
00:41:50,920 --> 00:41:53,080
Speaker 3: that we can still see and the push out potentially

840
00:41:53,160 --> 00:41:53,680
Speaker 3: of TikTok?

841
00:41:55,120 --> 00:41:55,319
Speaker 5: Yeah.

842
00:41:55,400 --> 00:41:57,319
Speaker 22: I still think that there's a lot of people who

843
00:41:57,320 --> 00:42:01,480
Speaker 22: come to Visco because they want that safe place to

844
00:42:01,520 --> 00:42:03,080
Speaker 22: engage and connect with other people.

845
00:42:03,600 --> 00:42:05,319
Speaker 4: We get over a million.

846
00:42:05,000 --> 00:42:05,879
Speaker 9: Signups a month.

847
00:42:06,080 --> 00:42:10,759
Speaker 22: Organically, we don't do any paid advertising, and this is

848
00:42:10,760 --> 00:42:13,480
Speaker 22: something that I think many people come to Visco for.

849
00:42:13,920 --> 00:42:15,520
Speaker 4: However, that's not our focus.

850
00:42:15,520 --> 00:42:17,560
Speaker 22: We do find that a lot of gen Z who

851
00:42:17,640 --> 00:42:22,759
Speaker 22: want to increasingly become professional creators or professional photographers themselves.

852
00:42:23,120 --> 00:42:24,839
Speaker 22: They come because they.

853
00:42:25,360 --> 00:42:27,400
Speaker 5: Quick carry So I think there's a lot of skepticism

854
00:42:27,400 --> 00:42:29,800
Speaker 5: about two hundred million, and so Visco uses two hundred

855
00:42:29,800 --> 00:42:31,279
Speaker 5: million of view around the world which have a camera.

856
00:42:31,280 --> 00:42:33,600
Speaker 5: I'm looking at If you are a Visco, use a

857
00:42:33,640 --> 00:42:36,400
Speaker 5: contact us. I'd like to hear from you. Caaren mentioned

858
00:42:36,440 --> 00:42:39,439
Speaker 5: one TikTok and one million on board a month.

859
00:42:39,480 --> 00:42:43,040
Speaker 4: Are you onboarding from anywhere? Specifically? It's organic.

860
00:42:43,080 --> 00:42:44,440
Speaker 22: I mean a lot of people are just right now.

861
00:42:44,440 --> 00:42:46,160
Speaker 4: They've got to be coming from somewhere. It's a battle

862
00:42:46,160 --> 00:42:47,160
Speaker 4: for eyeballs. Yeah.

863
00:42:47,440 --> 00:42:50,759
Speaker 22: The biggest, the biggest place we're finding these customers is

864
00:42:50,800 --> 00:42:55,040
Speaker 22: actually coming from Instagram. So that's our biggest referral source

865
00:42:55,120 --> 00:42:57,640
Speaker 22: is people who are coming over from Instagram. Second is

866
00:42:57,680 --> 00:43:01,680
Speaker 22: people just finding Visco on the web. They're looking for alternatives.

867
00:43:01,880 --> 00:43:04,400
Speaker 22: They are looking for places where they can express themselves

868
00:43:04,400 --> 00:43:07,360
Speaker 22: creatively in a healthy and authentic way, and Visco is

869
00:43:07,400 --> 00:43:09,200
Speaker 22: that place fascinating.

870
00:43:09,600 --> 00:43:12,680
Speaker 3: Risco CEO Eric Whitman on being a bit dea positive

871
00:43:12,960 --> 00:43:16,319
Speaker 3: on a million people adopting your platform every single month.

872
00:43:16,680 --> 00:43:19,640
Speaker 6: We thank you for talking us through where they're coming from. Now.

873
00:43:19,960 --> 00:43:22,360
Speaker 3: That does it from this edition of Bluebod Technology, and

874
00:43:22,440 --> 00:43:24,560
Speaker 3: what a week it has been, and we brace ourselves

875
00:43:24,600 --> 00:43:26,279
Speaker 3: from an amazing conversation come Monday, ed.

876
00:43:26,920 --> 00:43:28,879
Speaker 4: Yeah, yeah, just an incredible week.

877
00:43:29,000 --> 00:43:32,040
Speaker 5: You know, earnings AI it all continues, and it does

878
00:43:32,080 --> 00:43:32,760
Speaker 5: continue Monday.

879
00:43:32,760 --> 00:43:33,120
Speaker 4: Thank you know.

880
00:43:33,160 --> 00:43:35,319
Speaker 5: I'm having this big conversation with Jensen Wang and Mike

881
00:43:35,520 --> 00:43:38,520
Speaker 5: Michael Dell recap today. Though we cover a lot of ground,

882
00:43:38,760 --> 00:43:40,640
Speaker 5: you know where to find the pod. Thank you to

883
00:43:40,680 --> 00:43:42,719
Speaker 5: everyone that tunes in, and thank you to those who

884
00:43:42,719 --> 00:43:43,600
Speaker 5: listen to the podcast.

885
00:43:43,640 --> 00:43:45,400
Speaker 4: That's where you can see it and hear it. This

886
00:43:45,520 --> 00:43:46,080
Speaker 4: is Bloomberg